Category Archives: Financial

Ellen Brown ~ Even The Council On Foreign Relations Is Saying It

“Assume a $1 trillion dividend issued in the form of debit cards that could be used only for goods and services. A back-of-the-envelope estimate is that if $1 trillion were shared by all US adults making under $35,000 annually, they could each get about $600 per month.  If the total dividend were $2 trillion, they could get $1,200 per month. And in either case it could, at least in theory, all come back in taxes to the government without any net increase in the money supply.” E Brown

Time To Rain Money On Main Street

You can always count on Americans to do the right thing, after they’ve tried everything else. —Winston Churchill

Ellen Brown

Ellen Brown

When an article appears in Foreign Affairs, the mouthpiece of the policy-setting Council on Foreign Relations, recommending that the Federal Reserve do a money drop directly on the 99%, you know the central bank must be down to its last bullet.

The September/October issue of Foreign Affairs features an article by Mark Blyth and Eric Lonergan titled “Print Less But Transfer More: Why Central Banks Should Give Money Directly To The People.” It’s the sort of thing normally heard only from money reformers and Social Credit enthusiasts far from the mainstream. What’s going on?

The Fed, it seems, has finally run out of other ammo. It has to taper its quantitative easing program, which is eating up the Treasuries and mortgage-backed securities needed as collateral for the repo market that is the engine of the bankers’ shell game. The Fed’s Zero Interest Rate Policy (ZIRP) has also done serious collateral damage. The banks that get the money just put it in interest-bearing Federal Reserve accounts or buy foreign debt or speculate with it; and the profits go back to the 1%, who park it offshore to avoid taxes. Worse, any increase in the money supply from increased borrowing increases the overall debt burden and compounding finance costs, which are already a major constraint on economic growth.

Meanwhile, the economy continues to teeter on the edge of deflation. The Fed needs to pump up the money supply and stimulate demand in some other way. All else having failed, it is reduced to trying what money reformers have been advocating for decades — get money into the pockets of the people who actually spend it on goods and services.

A Helicopter Drop on Main Street

Blyth and Lonergan write: Continue reading

Greg Hunter Interviews John Williams ~ Economy In Severe Trouble [Video]

Economist John Williams says forget all the happy talk about the improving economy.  Williams says “The economy is in severe trouble.”  Williams goes on to say, “When you see a contraction as we had in the first quarter, given all the upside biases that the government puts into the series, you know the economy is in serious trouble.

The second quarter was reported at 4% (GDP).  They revised it up to 4.2%.  That is not much of a revision, and it is barely significant when you consider there is a margin of error plus or minus three and a half percentage points.  Early numbers we have seen on the third quarter suggests that the third quarter is going to be weaker.  The numbers for the second quarter . . . do not support 4% growth.  There is no way that is happening.” Continue reading

Carl Herman ~ Labor Day 2014: Economic Solutions Already Here For Full Employment, Zero Public Deficits And Debts

Monetary reform pays the national debt of over $17 trillion dollars virtually without cost, and ends its gross $400 billion+ annual interest payments.” C Herman

Labor Day is an Orwellian holiday: US “leaders” psychopathically pretend to care about American labor while lying about a real unemployment rate of close to 25% (the so-called “official” rate excludes under-employed and discouraged workers).

Along with unemployment, Americans receive policy enabling oligarchs to “legally” hide $20 to $30 trillion in offshore tax havens in a rigged-casino economy designed for “peak inequality.” For comparison, $1 to $3 trillion ends global poverty forever, saving a million children’s lives every month from slow and gruesome death (here, here). And, as always, US “leaders” lie-begat Americans into unlawful Wars of Aggression (in comparison, 11 days of US war cost would pay for all tuition of US college students).

Americans could have full-employment and zero public deficits and debt with monetary and credit reform.

These solutions are obvious upon a few moments of your attention. See for yourself:

What is monetary and credit reform?

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Mac Slavo ~ Fed Vice Chairman Warns: Your Bank May Seize Your Money to Recapitalize Itself

“The bottom line is that financial, economic and monetary policymakers in the United States are fearful that another crisis, perhaps even worse than what we saw in 2008, is going to be playing out in the very near future. Otherwise, why would they find it necessary to take the drastic step of forcing bank depositors to act as a backstop for their financial institutions?” – M Slavo

FallingDominoesAt the height of the financial crisis in 2008 the U.S. government forced some of the countries largest banks to take “bailout” funds amounting to billions of dollars in order to keep them from going bankrupt. It was a move designed to not only keep too-big-to-fail financial institutions afloat, but one that would inspire confidence and keep American consumers spending. As a result, the last several years have seen stock markets reach record highs with Americans continuing to rack up personal debt for real estate, vehicles, education, and consumer goods as if the financial crisis never happened.

But the purported recovery may not be everything that government officials and influential financial leaders have made it out to be.

Recent comments delivered by Federal Reserve Vice Chairman Stanley Fischer suggest that not only are global and domestic economies still struggling, but the U.S. government itself is preparing financial contingency plans in anticipation of another widespread economic event.

However, this time around, according to Fischer, the government won’t be bailing out financial institutions in need of cash. Instead, failing banks will turn directly to their unsecured creditors when they need money. And within this context, that means you.

The recession that began in the United States in December 2007 ended in June 2009. But the Great Recession is a near-worldwide phenomenon, with the consequences of which many advanced economies continue to struggle. Its depth and breadth appear to have changed the economic environment in many ways and to have left the road ahead unclear.

[…]

Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry–though less advanced than the work on capital and liquidity ratios–holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer.

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Charles Hugh Smith ~ It’s Not Just Politics That’s Broken – The Status Quo’s Model of “How the World Works” Is Broken

“The Status Quo is dysfunctional because its model of how the world works is broken. . . . fixing the political dysfunction won’t fix the systemic dysfunction.” C H Smith

CharlesHughSmithMuch has been written about the dysfunction in Washington D.C. Pundits have been wringing their hands for years over the rise of bitter partisan politics and the resulting gridlock. The impact of this–what I have termed profound political disunity–extends beyond the narrow confines of domestic politics, a reality reflected in Foreign Affairs new survey of our winter of political discontent, Dysfunction Junction.

But all these discussions of our dysfunctional politics ignore the larger truth, which is the entire model of the Status Quo is broken. Even if reformers succeeded in ridding the political system of cronyism and favors-for-campaign-contributions–two essentially impossible reforms, given the legalistic cover provided for cronyism and bought and paid for representatives, the basic model of “how the world works” that dominates the world-view of leaders across the political spectrum would remain broken.

1. The current gridlock continues, and the policies in place grind on with minor tweaks.

2. The Democrats win a sweeping victory and are able to unilaterally impose their reforms.

3. The Republicans win a sweeping victory and are able to unilaterally impose their reforms.

Why do we know the entire model is broken? Because all three alternatives lead to a continuation of the same ruinous model of “how the world works”:

1. A continued reliance on Keynesian Cargo Cult “stimulus,” i.e. borrowing and blowing trillions of dollars to prop up inefficient, bloated, corrupt, wasteful crony-capitalist cartels and politically untouchable fiefdoms. Continue reading

Pam Martens & Russ Martens ~ Are U.S. Markets Liquid And Deep Or Rigged And Broken?

“In a market dominated by electronic trading, investors are having their pockets picked — and individual investors and mutual fund shareholders are among the likely victims. The securities exchanges’ practice of selling early access to their trading data to insiders — as the term ‘insiders’ suggests — is a practice that looks like illegal insider trading.” – Mercer Bullard

Every time a Wall Street honcho is hauled before Congress to explain the latest fleecing of the unsophisticated investor, he can be counted on to punctuate his testimony with this: “the U.S. markets are the deepest, widest, most liquid markets in the world.” Or words to that effect.

There are now two gripping questions before Congressional investigators, the FBI, the Justice Department and the New York State Attorney General’s office as they look at High Frequency Trading operations in U.S. markets:

Can markets give the appearance of liquidity while simultaneously being rigged?

How much “liquidity” is being created because the current market structure offers a slam-dunk opportunity for High Frequency Traders to loot the unsophisticated with impunity, thus drawing a steady flow of big money to the looting enterprise?

This, naturally, leads to two final questions: will market liquidity be negatively impacted, and by how much, if the incentive to steal without penalty is removed; has it come down to America having to accept a less liquid market or a market filled with thieves running a wealth transfer system in broad daylight? Continue reading

American Gangsters! Matt Taibbi & Max On Suckers Buying Bogus & Big Bank Mass Perjury [Video]

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss how some looters are more equal than others as Jamie Dimon gets to keep his mortgage fraud deal with the Department of Justice secret while others get gunned down in broad daylight for lifting a cigarette. In the second half, Max interviews journalist and author, Matt Taibbi about the injustice that follows the wealth divide and how Ferguson, Missouri plays into that.

Elizabeth Renter ~ You Could Save 89% on Average Buying Organic Food This Way

“In addition to saving money, the buying clubs essentially build a community around the healthful practice.” -E Renter

OrganicProduceOne of the top complaints when it comes to buying organic is the cost. It’s true that organic products can cost considerably more than their conventionally-grown counterparts. And while the higher prices may be worth it, finding ways to shop organic without breaking the bank can pay off for everyone.

As Mother Earth News reports,  a 2012 study from the Food Industry Leadership Center indicated buying in bulk could be the answer cost-conscious consumers are seeking.

When consumers purchased in bulk, they saved an average of 89 percent compared with regular supermarket costs.

Buying bulk organics doesn’t only mean shopping out of the scoop-it-yourself containers at Whole Foods. A growing number of people are forming organic buying clubs. Such clubs use the collective power of the group to purchase bulk organics and distribute them among members. Continue reading

Pam Martens ~ Memo To Fed: Interest Rates Are A Sideshow; The Problem Is Income Inequality

“. . . Do what we may have to do to inject life into our ailing economic order, we cannot make it endure for long unless we can bring about a wiser, more equitable distribution of the national income” -Pres. Franklin D Roosevelt

The time and effort spent by members of the Federal Reserve Board of Governors debating the timing of rate hikes is an utterly wasted exercise in futility – and the historically astute members of the Fed know it. After eight solid months of blathering about when rate hikes might occur, the real muscle in the bond market – the bond vigilantes – are drawing their own conclusions about what is coming down the pike.

The benchmark 10-year U.S. Treasury note has moved from a yield of 2.85 percent at the beginning of the year to close last week at 2.38 percent. That’s the reaction of a market more worried about constrained income dispersal in the U.S. causing deflation than a market bidding up yields in anticipation of a rate hike.

10-Year U.S. Treasury Note Yield Is Ignoring Fed Talk of Rate Hikes

10-Year U.S. Treasury Note Yield Is Ignoring Fed Talk of Rate Hikes

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