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Socio-Economics & History Commentary

Man Who Executed QE1 For FedRes Says Stocks May Collapse 30%!

  • Man Who Executed QE1 For Fed Says Stocks May Collapse 30%! 
    by www.kingworldnews.com
    In the aftermath of the recent chaos and market turmoil in emerging markets, today King World News spoke with the man the Fed called on to execute QE1 and who also set up the Fed’s massive trading room, former Fed member and former Managing Director at Morgan Stanley, Andrew Huszar.  What he had to say will stun KWN readers around the world.  He warned stocks may collapse 30% or more in a matter of months if the Fed continues on the current course, and he also said that the Fed is now running the largest hedge fund in the world and it may end in disaster.  Below is what Huszard had to say in Part I of this remarkable interview.
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    Eric King:  “Andrew, what made you come out publicly and say that QE was a failure and apologize to everybody?  What made you come out and do that?”
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    Huszar:  “I left the Fed in 2011. … I maintain great respect for a lot of the people inside (the Fed), and so I struggled for a long time to come out and speak publicly about it.  But in the end I spoke out because I believe that QE, while initially well-intentioned, has really allowed the US to kick the can down the road with respect to major structural reform that has to do with its economy.
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    I think the financial crisis should have been a pretty significant wake-up call for the country, and yet five years after the peak of the financial crisis I think our economy looks pretty similar to where it was (after the 2008/2009 collapse), most importantly with respect to a banking sector, which has only become more concentrated and larger….
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    read more!

Dees_FedRes_printing_money_Bernanke_Obama_Biden

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February 22, 2014 Posted by | Economics | , , , , , , , , , , , , | 1 Comment

George Soros Bets $1.3 Billion on Stock Market Crash!

February 19, 2014 Posted by | Economics | , , , | 1 Comment

Robert Wiedemer: The Recovery is 100% Fake!

  • Robert Wiedemer: The Recovery is 100% Fake! 
    by Greg Hunter’s USAWatchdog.com 
    Robert Wiedemer, best-selling author of “The Aftershock Investor,” says the so-called recovery is “100 percent fake.”  Wiedemer explains, “If you look at the amount our economy has grown last year, our GDP grew 2% or $350 billion, but we borrowed over $700 billion.  That tells you right there that we are borrowing more than we are even growing.  Our entire growth is due to government borrowing . . . it’s a fake recovery.”  Wiedemer, who has totally rewritten and updated his book, goes on to say, “It would be great if we would adjust our economic figures for stimulus.  What would the figures really look like if you took the fake money and borrowed money away?”  It is supported heavily by printed money of over a trillion dollars last year.  We’re not talking about what’s driving the recovery we are getting, and it’s powered by massive money printing and massive money borrowing.  Yes, we are getting some recovery, but it is not driven by something that is sustainable.”
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    On
    the bond market, Wiedemer contends, “The only way you can keep interest rates low is to print money, and you are printing money to buy bonds.  Ultimately, that’s not going to work.  If printing money could do all the things they say it can do without creating inflation then . . . why don’t we get rid of taxes?  We could print the money instead.  The money we are printing, ultimately, will create inflation.”  Overall, the bond market has turned and turned for good, and you are going to have inflation.  That’s really going to be a problem for the bond market.”
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    On the stock market, Wiedemer says, “Fundamentally, stocks should reflect earnings, and last year, stocks were up 30% and earnings were up about 3%.  So, we’re way out of line with corporate reality, and we’re way out of line with economic reality.”  What’s happening is the feeling of the Fed’s got my back, printing a lot of money.  Some of that money has to go into the stock market. . . . So, there’s been this feeling the Fed can boost us up . . . yes, the Fed can boost us up, but it is not the basis for long term economic recovery or a long term stock market recovery.  As I say in my book, it’s the basis for a long term huge, huge explosion.”
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    On gold, Wiedemer says to not believe the false narrative that gold is a “risky” investment.  Wiedemer contends, “Let’s look at gold since 2000.  Up 12 years in a row, every single year.  That’s risky?  Can stocks say the same thing, you got to be kidding. . . . It did fall 30%, that’s a big drop . . .  we’re still up over 300% from where we were in 2000.  Can we say that about stocks?  No way, we’re now about where we were in 2000 . . . I might add, on the NASDAQ, you are significantly below where you were in 2000. . . . Let’s put this into perspective.  When did anyone in the mainstream media say gold was a great investment?  What you are hearing is a huge bias not borne out by the facts.”
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    On the Federal Reserve, Wiedemer says, “You are actually getting negative growth.  The Fed knows this.  They just don’t talk about it because their job is to be a cheerleader.  They want to try to make everybody feel good and that their policies are working.  If those policies don’t work, what’s the Fed going to do?  What are we going to do?  It’s a bigger issue, but bottom line here is I think the banks are safe in the sense the Fed can bail them out, but there will come a point when the Fed can’t and won’t, and that’s when you got a bigger problem.”
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    For anyone who thinks we’ve seen the worst of the bad economy—think again.  Wiedemer predicts, “The big one is coming . . . we’re just pumping up the bubbles, and all that’s going to do is make them a lot worse when they pop. . . . You are just putting more gun powder under the house . . . that’s a big mistake long term.”  (There is much more in the video interview.) 

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February 10, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | 1 Comment

Jim Rogers: “Be Worried & Be Careful…The Emerging Market Crisis Is Not Over Yet”!

  • Jim Rogers: “Be Worried & Be Careful…The Emerging Market Crisis Is Not Over Yet”! 
    by Tyler Durden, www.zerohedge.com
    UBS’ George Magnus believes the next global economic “crisis”‘ lightning rod will be the emerging markets and as Jim Rogers tells BoomBust’s Erin Ade in this brief interview, “the emerging market crisis has only just begun.” While Rogers is careful to add that there are lots of emerging markets – “some better than others;” he warns that “there are some serious problems out there and they are going to get worse.” Who is to blame? The Fed, of course – “by driving rates so low and providing as much liquidity as anyone in the world could want, the EMs have borrowed to cover up their real problems… be worried.
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    90 Seconds of simple clarity From 17:00 to 18:30 (top of post)
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    Transcript:

    For Turkey, Indonesia, India, Brazil – this is not over yet – “they have serious problems and are not being resolved.” 
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    The major problem is the Federal Reserve: with interest rates at such low levels, people can borrow lots of money – and America is printing a lot of money so there’s plenty to go around
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    A lot of countries have borrowed money at cheap rates which covers up their problems… they haven’t addressed their real problems; and so now, we have a huge problem facing us and it’s going to get worse.
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    This is not over yet – you should be worried, be careful, and be prepared

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February 10, 2014 Posted by | Economics | , , , , , , , , , , , , , | Comments Off

Gregory Mannarino: Debt and Currency Crisis that Will Rock the Core of the Earth!

  • FedRes Rattling Emerging Markets to Keep U.S. Propped Up-Gregory Mannarino!
    by Greg Hunter’s USAWatchdog.com 
    Analyst and stock trader Gregory Mannarino says the market meltdown this week was caused by the Fed and weak economy.  Mannarino says, “We understand there is a dynamic that has been changing here in the market with regard to the Fed’s purchasing mortgage-backed securities and bonds.  This has rattled the emerging markets.  They’re having problems with their currencies . . .  The Federal Reserve has created an environment of distortions.  By them pulling back some of this liquidity from the global economy, they’ve caused problems in these emerging markets, and this is being done on purpose.”  What is the Fed trying to accomplish by destabilizing emerging market countries?  Mannarino claims, “So, by rattling the emerging markets here, they are going to force investors into U.S. equities and into the U.S. bond market.  It’s sort of a backdoor stimulus. . . . This just keeps the party going.  That’s all this is.”
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    This may work in the short term, but it is not long term bullish for the markets.  Mannarino warns, “We have this issue with the U.S. economy.  They have been force feeding us nonsense . . . that we are in some kind of recovery. . . . This ISM number we got (Institute of Supply Management), we have not seen a pullback like this since 1980.  It rattled the market. . . . We’re also getting mediocre earnings reports.  We got unemployment numbers that are not good.  So, this is spooking the market.”  Looking at the big picture of the global economy, Mannarino goes on to say, “I am still a bull here in regards to the U.S. equity markets, but we all know where this is going.  This is going to end terribly at some point.  A complete financial meltdown is happening.  You can see this already how the Federal Reserve has distorted this beyond the point of ridiculousness.  Now, they are forcing the emerging market investor to look to the U.S. equity markets.  At some point, people are going to see this whole thing is not sustainable.  We are going to have a crisis of currency, a crisis of debt that is going to rock the core of the earth—period.” 
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    This is a confidence game according to Mannarino.  He says, “This is all about perception, not reality.  If we were really in some type of a recovery, would we be talking about extending unemployment benefits for people?  Would we be talking about more stimulus?  Of course not, because there is no recovery.  This is just smoke and mirrors across the board.”  Don’t expect the market to plunge just yet because Mannarino says, “The Fed is counting on turmoil in the emerging markets to drive money into the U.S. market to keep the system propped up.” 
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    Mannarino contends what you are seeing now is just a short term trade.  In the longer term, Mannarino predicts, “Without a doubt, this is going to blow up. . . . I’ve been saying this for years now–we are headed for a pan global financial cataclysm.  That’s a fact.”  So, how does Mannarino plan to protect himself from this surefire coming calamity?  Mannarino says, “I pull my gains out of the market, and I turn them into hard assets.  I am the biggest precious metals bull out here.  I can’t imagine a better place to be than in gold or silver, especially silver.”  
Where did the money go? Definitely not to the American people!

Where did the money go? Definitely not to the American people!

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February 6, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Comments Off

Harvard Economist Expects Bank Runs, Withdraws $1 Million from BofA!

February 5, 2014 Posted by | Economics, Social Trends | , , , , , , , | 2 Comments

Gerald Celente: Boom-Bust! ‘There’s Panic on the Street’!

  • Published on Feb  4, 2014           
    Celente: ‘There’s panic on the Street’ simply because the economy is faltering. Gerald talks about the Fed, the US Economy and global economic trends. The US Federal Reserve has pared its QE program even before Janet Yellen took the reins. The question for Celente is what this means for the US economy. Yields have gone down, not up. But Celente believes this will not last and that the economy is faltering to boot. Note: Gerald’s segment starts at 4:06 in this video.
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    The Trends Journal® is the World’s #1 source for the most important trends that are shaping the future. The Trends Journal® shows you how these trends will affect your life, how to profit from them, and what to do to avoid pitfalls. Regardless of business or profession, the Trends Journal® provides insights, strategies and opportunities to help you navigate these treacherous, unprecedented times.

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February 5, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | 1 Comment

Listen Carefully to What the Chinese Yuan is Telling Us!

  • Listen Carefully to What the Chinese Yuan is Telling Us! 
    by http://www.jsmineset.com/ 
    Recently, emerging market currencies have been crashing. The Thai Baht has fallen 14% in the past several months, while the Russian Ruble has fallen 18% since 2013. The Turkish Lira has fared even worse plummeting an astonishing 30% since 2013 and the Argentinian Peso is literally in free fall, plunging by 60% in purchasing power since the start of 2013.
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    Former US Assistant Treasury Secretary Paul Craig Roberts offered a compelling theory this past week that the US Federal Reserve is deliberately attacking emerging currencies through their global monetary policies in an effort to force people to fall back to the US dollar to prevent the US dollar from crashing to its intrinsic value of zero.  In fact, Mr. Roberts has speculated that US bankers are rejoicing in collapsing the currencies of two of the US’s perceived enemies – Russia and Venezuela. However, even if this is the US bankers’ nefarious plan, I have a feeling that it will backfire on them and only usher in the death of the USD more quickly. Why? Two of the pillars slowing down the inevitable collapse of the USD is the petrodollar and its use as a de facto currency in international trade. Every country from Iraq to India to Russia to Iran to China to Australia to Japan to Brazil has already stated their intention to completely cut out the USD from use in bllateral trade agreements as well as oil purchases, and many countries that had tied their currency’s fate to the USD in past years have long severed ties to the USD as well. But let’s look to Zimbabwe, yes that infamous beacon of hyperinflation, as to why the US Federal Reserve’s plan to force emerging markets to adopt the USD may just backfire on them.
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    We all remember when the Reserve Bank of Zimbabwe’s Gideon Gono praised Ben Bernanke for the similarities between his QE monetary policy and Ben’s QE policy of the US Federal Reserve. Recall that Albert Einstein said that doing the same thing over and over again and expecting a different outcome is the definition of insanity if you want to predict the outcome of the USD.  In hindsight, Mr. Gono acknowledges that while things looked better in the short-term in Zimbabwe for a while, that his QE policies in the end turned out to be brutally disastrous, causing in his country the following ills that his country still has not recovered from 5 years later: frequent power outages, a shortage of skilled labor, a persistent liquidity problem in their banking system, a rapid rise in production costs which killed their manufacturing sector, endemic greed-induced and exploitative renter’s markets, and much more.
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    So what does it say now that the brains behind a 79,600,000,000% monthly inflation rate in the Zimbabwe dollar (a rate that caused a USD $40 meal to cost $Z 100 billion! ) is now dumping USDs from their economy? Is the US headed for a fate of printing USD $100 billion notes too? While that scenario is far fetched at this point, people fleeing out of emerging market currencies into the Chinese yuan, and NOT the USD as the Feds are trying to engineer, is not.  Just last week, Gideon Gono announced that his country will now be accepting Chinese Yuan, Japanese Yen, Indian Rupees and the Australian dollar in an effort to lessen their country’s dependency on the USD.  Of course, the smartest people would consider dumping the USD in Zimbabwe (one of two currencies now accepted in addition to the S. African rand) for the Chinese Yuan. Given that the worst offender of hyperinflation does not even want the USD now, I think the Federal Reserve may succeed not in forcing people out of emerging currencies into the USD, but into Chinese Yuan. Emerging markets businessmen conducting import/export business already increasingly need Yuan to conduct business so why would they not convert more of their domestic currencies into Yuan instead of USD? And this is what I think will happen, so in the end the US Federal Reserves’ plan may just backfire and induce a flight into Chinese Yuan.
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    Consequently when the architect of the worst fiat currency disaster in modern history wants to trade in USD for Chinese Yuan, we should listen very carefully to what the Yuan is telling us.  Already, in just one month to start 2014, the Nikkei 225 has given up 9-full months of returns artificially spurred by Abenomics QE and has crashed 2,300+ points, with the Nikkei 225 shedding another -4.2% today in Asia. Other QE inflated stock market bubbles will pop at some point in 2014 as well. Yes, you’re probably being bombarded as I speak by messages from US stock market pushers not to worry about the setback in US stock markets to begin 2014 and that all will be okay, but I’m here to tell you that you better worry because risk is enormous and upside very constrained at this point. And when all these unsustainable bubbles built on the backs of irrational and foolish Central Bank QE policy around the world pop, that’s when the real money will flow into gold and silver.
Feel free to wipe your ass with it!

Feel free to wipe your ass with it!

US_Dollar_Toilet_Paper

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February 5, 2014 Posted by | Economics | , , , , , , , , , , , , , , , , , , , , | Comments Off

The Financial System is Crumbling… Again!

implosion_demolition_DesertInn

  • The Financial System is Crumbling… Again! 
    by Graham Summers, Phoenix Capital Research
    We find it truly extraordinary that anyone is surprised the financial system is under duress again. After all, what have the Central Banks accomplished in the last five years?
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    1)   Did they clear out the bad debts that caused the 2008 collapse? NOPE
    2)   Did they implement structural reforms to insure another 2008 didn’t happen? NOPE
    3)   Did they punish fraud or corruption in any way to insure that the system was clean? NOPE
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    So what did they do?
    They cut interest rates over 500 times and funneled over $10 trillion into the financial system, over 98% of which went to the very players (key banks) who nearly blew up the world in 2008.
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    And people are actually surprised that the system is back in trouble again? Would you be surprised if giving another shot of heroin to a drug addict who was in a coma didn’tbring him to health?
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    Honestly, did anyone think this would really work? I know that the connected elites loved it because the whole process allowed them to hand off their garbage investments to the public while leveraging up to acquire more assets via the Fed’s cheap money… but what about those who DON’T work for a top 20 global financial institutions? Did anyone actually believe this would work?
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    So here we are today, Europe’s already insolvent banks are now potentially on the hook for $3 trillion in Emerging Market investments.
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    When your entire banking system is leveraged at 26-to-1 it really doesn’t matter who you lend to… you’re bust. But in this case, the bad emerging market investments are just the icing on the rotten cake that is Europe’s banking balance sheets.
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    Hopefully Mario Draghi can “promise” something again and the whole system will hold together. After all, THAT and Bernanke’s decision to engage in more and more QE (despite NO evidence that QE benefits the economy) are what brought us back from the brink in June 2012… maybe Janet Yellen and Mario Draghi can repeat this.
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    Then of course there’s China… which has created the single biggest credit bubble relative to GDP in history. Nevermind, that they literally blow up buildings to build new ones to pad their GDP numbers… China is a miracle and its economy is on the verge of becoming another US.
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    The world believes China can become more driven by consumers… though the data shows consumer spending has grown by 9% a year for 30 years there… so hoping that things are going to erupt higher there is a little misguided.
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    And of course there’s the US, which is STILL printing $65 billion per month despite two QE tapers… which folks claim were terrible for the world (how exactly is printing $65 billion per month five years into an alleged recovery, a good thing? Doesn’t that NEGATE the entire claim of a recovery at all?).
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    You can build a house on a rotten foundation (bad debt, fraud, corruption) and it will stand for a while. But eventually it will collapse.
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    This will again happen with the markets. The only difference is that this time around, the Central banks have already spent most if not ALL of their ammo propping up the system.

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February 5, 2014 Posted by | Economics | , , , , , , , , , , , , | 2 Comments

Gregory Mannarino: ALERT! Stock Market Critical On Shocking ISM Report!

February 4, 2014 Posted by | Economics | , , , , , , , , | Comments Off

QE5: Stock Market Crash, Dollar Collapse!!

  • How do you reflate collapsing asset prices when you have chosen the tapering route? Either the FedRes abandon tapering or the US treasury revalue the price of gold very much higher!! A Global Currency Reset is coming!

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February 4, 2014 Posted by | Economics | , , , , , , , , , , , , , | Comments Off

Gerald Celente: No Way Out As Global Ponzi Scheme Collapse Begins!

Global meltdown??

Global meltdown super storm??

  • Celente – No Way Out As Global Ponzi Scheme Collapse Begins! 
    by www.kingworldnews.com
    Today the man who remarkably predicted months ahead of time that the Fed would taper in December, then again in January, and who also predicted the global market plunge that we are now seeing, warned KWN that there is no way out this time for central planners as the global Ponzi scheme has now begun to collapse.  He also discussed the incredible turmoil taking place around the world.  Below is what Gerald Celente, founder of Trends Research and the man considered to be the top trends forecaster in the world, had to say in this remarkable interview.
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    Eric King:  “Gerald, so far this chaos is unfolding exactly as you said it would with the market turmoil around the world.  Some of the market participants are becoming a bit shocked at what’s unfolding here, but you called it to perfection.  My question to you is, where do we go from here?”
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    Celente:  “Global markets are headed down, but it may not be in a straight line because you are going to start seeing the Fed, (Washington) D.C., and the Wall Street gang move in to stop the slide in global equities….
    ….
    So we now have countries all over the world involved in covering up what will ultimately be the greatest Ponzi scheme collapse ever seen in history because this time it will be global.  As this collapse unfolds, there will be nowhere to hide in the banking system, and there will be nowhere to run inside of the global financial Ponzi that exists today.  All hell will literally break loose as it collapses and people are running out of time to get prepared.”
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    read more!

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February 4, 2014 Posted by | Economics | , , , , , , , , , , , , , , , | Comments Off

Tokyo Stocks Dive 3.33% by Break on FedRes Tapering Move!

Global meltdown??

Global meltdown??

  • Tokyo stocks dive 3.33% by break on Fed stimulus move! 
    by http://www.channelnewsasia.com/news
    TOKYO: Tokyo stocks tumbled more than three percent Thursday, sparked by worries over emerging markets as the Federal Reserve further scaled back its stimulus programme.
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    T
    he benchmark Nikkei-225 index slumped 3.33 per cent, or 511.53 points, to 14,872.38 by the break — wiping out its 2.70 per cent gain Wednesday. The Topix index of all first-section shares fell 3.04 per cent, or 38.15 points, to 1,218.03.
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    “The turmoil in emerging markets does not look like it’s close to dying down,” Yoshihiro Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.
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    “While the continuation of the Fed’s tapering programme implies higher US interest rates, a stronger dollar and a weaker yen — all of which are fundamentally positive for Japan stocks — the ‘risk-off’ investor mood and jolt to the world’s growth markets is trumping these facts.”
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    The Fed said Wednesday it would reduce its monetary easing programme by US$10 billion a month to US$65 billion, following a similar move in December.
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    Investors took flight after the announcement, which stoked fears of a capital flight from emerging markets as dealers look for safer investments back home.
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    read more!

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January 30, 2014 Posted by | Economics | , , , , , | Comments Off

Gerald Celente: The Next Scam, Equities Down Interest Up!

  • Published on Jan 29, 2014           
    In this final segment Gerald Celente forecasts what is most likely to be the next scam by the white shoe boys. Yes, there will be a new round of stimulus, more QE and when they do it your gonna see gold skyrocket. Celente also touches on Goldman Sachs LIBOR manipulation, Gold price suppression  and more. Celente closes with his perspective on the pitch fork mobs in Brazil and across the globe. When all else fails, they take you to war. 2014 Trends? Interest up and Economy and Equities down.

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January 30, 2014 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , | Comments Off

The Carnage Continues In Asia As China PMI Confirms Contraction Deepening!

China_HSBC_Manufacturing_PMI_20140129

  • The Carnage Continues In Asia As China PMI Confirms Contraction Deepening! 
    by Tyler Durden, www.zerohedge.com
    Following last week’s Flash PMI print of 49.6, the Final print for January China Manufacturing dropped further to 49.5 confirming the contraction is deepening. Japanese stocks were down the most since August in the early going as Nikkei futures extended the losses from the US day-session (and rather notably decoupled from USDJPY and breaking below 15,000). The Nikkei is heading for the worst month since May 2012 (-8.66% so far). S&P futures tracked USDJPY as 102.00 was defended aggressively. Chinese stocks are also tumbling (though not as hard as Japan and US) and the PBOC will not be adding liquidity today. Furthermore the blame is being shifted as Deputy FinMin Zhu warns that the “Chinese economy faces risks from overseas uncertainty.” EM FX is drifting lower still.
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    The Final HSBC Manufacturing PMI print dropped from 49.6 Flash to 49.5 – its biggest drop since June and lowest since July 2013…
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    read more!

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January 30, 2014 Posted by | Economics | , , , , , | Comments Off

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