Keiser Report: Down is New Up, Up is New Down (E447)!
- Published on May 21, 2013
In this episode of the Keiser Report, Max Keiser and Stacy Herbert examine whether the markets are soaring or crashing but find it impossible to determine as long standing data patterns have broken down. They discuss feeding the ducks while they’re quacking and bitcoin vigilantes fighting the Fed. In the second half, Max talks to Sandeep Jaitly of FeketeResearch.com about the imminent extinction of the price of gold as well as the permanent backwardation in both gold and silver markets.
end
Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever!
- Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever!
by Tyler Durden, www.zerohedge.com
Two years ago, Zero Hedge first made the observation that the bulk of Fed reserves (also known simply as “cash created out of thin air” because money is first and foremost fungible no matter what textbook theoreticians may claim, and the only cash allocation preference is the capital allocation IRR analysis) had been parked not with US banks, but with foreign banks with US-based operations. We followed that with more analyses, showing explicitly how the Fed was providing a constant cash injection to foreign banks courtesy of the rate on overnight reserves which is the amount Fed pays to banks that hold reserves with it, as the bulk of reserves continued to end up with foreign banks – a situation set to become a huge political storm some time in 2014-2015 when the IOER has to rise and the Fed is “found” to have injected tens of billions of “interest” not into US banks but in foreign banks operating in the US, and which then can upstream the “profits” to insolvent offshore domiciled holding companies.
-
So it was our expectation that while if not slowing down its rate of money-creation (i.e., reserve-production) – something that won’t happen for a long time as it would crash the stock market – the Fed’s reserves would at least revert to being accumulated at US-based banks. No such luck. In fact as the latest H.8 report demonstrates, as of the most recently weekly data, the Fed’s policies have led to foreign banks operating in the US holding an all time high amount of reserves, surpassing $1 trillion for the first time, or $1,033 billion to be precise.
-
This means that, as we expected several months ago, the only recipient of ongoing Fed money printing are not US banks, but foreign banks operating in the US. For those confused about the big picture, here is a chart showing the breakdown of cash held by big and small US banks as well as foreign banks, superimposed to total reserves created by the Fed since the start of the Great Financial Crisis. The correlation is 100%.
-
And just to prove that ALL the unsterilized cash from both QE2 and QEternity has essentially gone to support offshore banks, here is the conclusive chart showing the change in Fed reserves and cash held by foreign banks:
-
read more!
end
Michael Pento Likes Gold But Warns A Stock Market Crash Is Coming!
- Pento Likes Gold But Warns A Stock Market Crash Is Coming!
by www.kingworldnews.com
Today one of the top economists in the world told King World News he is very bullish on gold, but warned of a coming global stock market crash and economic meltdown. Michael Pento, who heads Pento Portfolio Strategies, spoke candidly about the frightening situation the world faces in the very near future.
-
But first, Pento tore into Goldman Sachs for their call to short gold yesterday: “I would put some credence in what these two analysts (from Goldman Sachs) said if they actually gave me a fact or two as to why I should not just avoid owning gold right here after it’s down $400 an ounce from its high, but I would prefer if they just gave me one reason why I should short gold at this juncture.
-
If you read their report, as I did, this is their reasoning: I want to quote these two (Goldman) analysts, “In fact, should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast.”
-
So, if you comb through their report and look for one shred of evidence, one fundamental factor as to why they are going to short gold here, you don’t find one. The reason why they are going negative on gold is because it’s not going higher, and if gold goes lower their analysis is it will go even lower, and even faster. I mean it’s absolutely asinine when you listen to their logic….
-
read more!
end
This Will Signal The Final Collapse & End Game Has Started !
Financial Armageddon dead ahead !
- This Will Signal The Final Collapse & End Game Has Started!
by www.kingworldnews.com
Today John Embry spoke with King World News about what will signal to investors that the final collapse and end game is upon us. Below is what Embry, chief investment strategist at Sprott Asset Management, had to say:
-
“I think the US stock market is building a massive rounded top, and when it finally buckles it will probably be the start of the end game. The volume keeps declining as the markets rise. This is not a good pattern when viewed from a historical context.
-
So the whole situation we find ourselves in makes me very uncomfortable. The mainstream media continues with its propaganda in order to mislead people regarding the true state of the economy. At the same time the markets keep being propped up by the Fed, and gold and silver are being wildly suppressed. The suppression of the metals is taking place to keep people believing everything is fine….
-
read more!
end
Cyprus, Massive Global Debt, Derivatives & The End Game!
- Cyprus, Massive Global Debt, Derivatives & The End Game!
by www.kingworldnews.com
Today John Embry told King World News that what is happening in Cyrpus is just a prelude to a more catastrophic day when the financial system grinds to a halt. He says the Cyprus disaster has frightened people all around the world and things will only get worse from here. Below is what Embry, who is chief investment strategist at Sprott Asset Management, had to say regarding this ongoing crisis:
-
Eric King: “In the aftermath of what they are saying is a deal in Cyprus, John, what are your thoughts?”
-
Embry: “We knew they would come back with another solution because they can’t afford for a country as small as Cyprus to bring down the whole euro construct. I think people recognize that Germany has a vested interest in keeping this thing afloat because their banking system is loaded with all of this peripheral country debt.
-
The last thing the Germans want to see is Mediterranean countries leaving and defaulting on that paper. But they haven’t solved anything here. They are just kicking the can down the road, and they are setting up for a conclusion that will be more catastrophic when it finally arrives….
-
read more!
end
The Big Dogs On Wall Street Are Starting To Get Very Nervous! Corporate World Unloading Stocks Like There is No Tomorrow!
- The Big Dogs On Wall Street Are Starting To Get Very Nervous!
by Michael Snyder, Activist Post
Why are some of the biggest names in the corporate world unloading stock like there is no tomorrow, and why are some of the most prominent investors on Wall Street loudly warning about the possibility of a market crash? Should we be alarmed that the big dogs on Wall Street are starting to get very nervous?
-
In a previous article, I got very excited about a report that indicated that corporate insiders were selling nine times more of their own shares than they were buying.
-
Well, according to a brand new Bloomberg article, insider sales of stock have outnumbered insider purchases of stock by a ratio of twelve to one over the past three months. That is highly unusual. And right now some of the most respected investors in the financial world are ringing the alarm bells.
-
Dennis Gartman says that it is time to “rush to the sidelines”, Seth Klarman is warning about “the un-abating risks of collapse”, and Doug Kass is proclaiming that “we’re headed for a sharp fall”.
-
So does all of this mean that a market crash is definitely on the way? No, but when you combine all of this with the weak economic data constantly coming out of the U.S. and Europe, it certainly does not paint a pretty picture.
-
According to Bloomberg, it has been two years since we have seen insider sales of stock at this level.
-
read more!
end
When Gold Turns It Will Trade Violently To The Upside!
Remember the Golden Rule: He who has the gold makes the rules!
- When Gold Turns It Will Trade Violently To The Upside!
by www.kingworldnews.com
Today Bill Fleckenstein spoke with King World News about gold and global stock markets. Fleckenstein, who is President of Fleckenstein Capital, believes the gold market is at or near the end of the long correction. He also issued a warning about global stock markets.
-
Eric King: “Bill, we’ve had a lot of the mainstream media the past few weeks saying that the gold bull market is over, your thoughts on that?”
-
Fleckenstein: “Don’t they say that every day, every week? Haven’t they said that for 12 years? It’s just another phase of a correction that’s been underway for quite some time. I think now that sentiment has probably gotten about as lopsided on the downside as it ever gets on the upside….
-
read more!
end
No End in Sight for Global “Currency Wars”!
- No End in Sight for Global “Currency Wars”!
by Gary Dorsch, Editor, Global Money Trends
With frigid temperatures expected to hover between 15-degree and 23-degree Fahrenheit this weekend in Moscow, it’s a wonder why the world’s most powerful finance chiefs and central bankers would schedule their Feb 15-16th meeting in Vladimir Putin’s backyard. Instead, a better venue for the Group-of-20 would’ve been the Cayman Islands. The Islands are warm year-round, with average highs holding steady in the 80’s. January and February are the coolest months with lows averaging in the lower 70’s. However, Russia holds the presidency of the G-20 this year, – so finance chiefs will have to endure the frozen tundra.
-
A January 16th warning issued by Russia’s central banker Alexei Ulyukayev has also set the narrative for the G-20 meeting. “The world is on the brink of a fresh “currency war.” Japan is weakening the yen and other countries may follow. If Japan continues to pursue a softer currency, reciprocal devaluations would hurt the global economy,” Ulyukayev warned. “We’re on a threshold of very serious and confrontational actions. The new government of Japan is a course towards a very protectionist monetary policy through a sharp depreciation of the yen. Other colleagues from respected central banks and governments already pursue this policy. This is not a path towards global coordination but rather a separation,” Ulyukayev declared.
-
Guido Mantega, Brazil’s finance minister, quickly chimed in, warning that the Federal Reserve’s “protectionist” gambit to roll out more quantitative easing (QE) would reignite “currency wars” with drastic consequences for the rest of the world. “It has to be understood that there are consequences. The Fed’s QE-program ($85-billion per month of money printing) will “only have a marginal benefit in the US as there is already no lack of liquidity. And that liquidityis not going into production. Furthermore, Japan’s decision to expand its own QE, coming on the heels of the Fed’s decision (to expand QE to $85-billion per month), is evidence of growing global tensions. That’s a currency war,” he declared.
-
Yi Gang, a deputy governor of the People’s Bank of China (PBoC), and chief of the State Administration of Foreign Exchange, said he’s worried about the fallout from QE and the Zero Interest Rate Policy (ZIRP), in the G-7 economies.“QE for developed economies is generating volatility in financial markets in terms of capital flows. Competitive currency devaluation is one aspect of it. If everyone is doing super QE, which currency will depreciate?” he asked.
-
As the European, Japanese, and US-governments sink deeper into a morass of debt, the ruling politicians are pressuring their central bankers to print more money, in order to finance their budget deficits. So far, five central banks, – the Federal Reserve, the European Central Bank, Bank of England, the Bank of Japan and the Swiss National Bank have effectively created more than $6-trillion of new currency over the past four years, and have flooded the world money markets with excess liquidity. The size of their balance sheets has now reached a combined $9.5-trillion, compared with $3.5-trillion six years ago.
-
In turn, the tsunami of ultra-cheap cash is inflating bubbles in the world’s bond and stock markets. On Feb 13th, hedge fund trader Jim Rogers commented, “The US-stock market is near its all-time highs because the Federal Reserve is printing staggering amounts of money. This is very artificial,’’ Rogers warns. And the willingness of the political puppets at the Fed and other central banks to keep buying hundreds of billions of dollars’ worth of government bonds makes it easier for the ruling political elite to sustain the massive deficit spending that’s running up a record-breaking national debt. Rogers adds, “It’s a vicious cycle and it’s all insanity. No sound person in his sound mind would say, this is the way to run things. Of course, it’s going to lead to more inflation. But the government says we don’t have inflation. If you shop, you know that there’s inflation.’’
-
read more!
end
Felix Zulauf: World Headed Toward 1987 Style Market Collapse!
- Felix Zulauf: World Headed Toward 1987 Style Market Collapse!
by www.kingworldnews.com
Today renowned money manager Felix Zulauf told King World News that global stock markets are careening toward a 1987 style market collapse. Stock markets plunged in 1987, and the world is at risk of that situation developing once again, according to Zulauf. Zulauf, founder of Zulauf Asset Management and 20+ year Barron’s Roundtable panelist, also said gold will head to new all-time highs during the coming market chaos.
-
This is the first of a three part written interview series that will be released on King World News today. In these interviews the legendary money manager discusses why he believes central planners will fail, how this will lead to systemic collapse, gold repatriation, what investors should be doing with their money right now, how they can protect themselves going forward, and much more.
-
Eric King: “Felix, you’ve had a chance to look at how things evolve globally each year as we go through this cycle. How do you see the end game playing out at this point? How do you think this will end? Meaning, if the world doesn’t solve its situation in a conventional manner, as you said earlier, will we see a greater degree of chaos than the world witnessed in late 1979, early 1980?”
-
read more!
end
About
Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
