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  • Are You Preparing For $10,000 Gold? [View article]
    There is no need for gold in a civilized and just society where there is a Rule Of Law and the laws are applied fairly and across the board. In such a society - gold would compete with plastic ornaments for adornment purposes - nothing more.
    On the other hand - if property rights are routinely violated, an elite predator class is above the law and ordinary people have no protections - gold takes on a different meaning.
    So - we have nothing to worry about.
    Nov 17, 2014. 02:16 AM | 1 Like Like |Link to Comment
  • Trying A Little Too Hard [View article]
    3 to 4% nominal growth. A matter of philosophical taste whether you consider that 3% real growth and 1% inflation. Or maybe, 0% real growth and 4% inflation.
    The calculation of inflation is a a tricky matter - technological improvements , the fact that the worst off homeless guy has penicillin which Henry VIII did not have - leads some to say there has been no inflation since the invention of the wheel.
    On the other hand the price of eggs and milk seems to go up.
    What to do . What to do.
    Nov 17, 2014. 01:54 AM | 3 Likes Like |Link to Comment
  • JPMorgan settles $681M self-dealing Texas Shale Trust case - Bloomberg [View news story]
    The Board got a good deal when they gave Jamie a mere 75% pay increase last year. he is a true innovator in the same league as Edison or madame Curie. He has converted what used to be considered criminal in less enlightened times - into a simple calculation that can be performed by any analyst equipped with an Excel spreadsheet. He has removed fear from the equation. So - now an analyst can simply consider the cost-benefit analysis , unburdened by an fears of landing in a jail cell . An amateurish take on the innovation is this:
    -Ya takes da profit - kapische? Den ya subtract the vigorish ya gots to pay to da govt. Wot ya got after that - is wot ya may call - Net Net profit. - dats wot ya got left over to spend - on say a Cadillac with nice fur seats - or a faux-fur coat fer yer lady - kapische?
    Genius. Not one in a million men came up with that . Now, of course after the conceptual leap is public- it seems obvious to everyone - and everyone is doin' it. But someone had to think of it first - its a thankless job - but history will record it as one of the great innovations - after the wheel, electricity and the internal combustion engine.
    Nov 16, 2014. 02:37 AM | 3 Likes Like |Link to Comment
  • Contemplating Stocks Without QE [View article]
    There has been one very important lesson learnt by Wall Street and the Fed since the coup in 2008 - and it is this:
    You can get away with anything - the "people" are even more passive than we imagined. They are even more uninterested and ignorant than we imagined. They are ripe for repeated shearing.
    In fact, just for kicks for any young interns who dont believe it - here - just take this poor peasants money - right out of his bank acct - see? Think you'll get in trouble right? Heee heee. Charlie - you are not in Kansas anymore - Welcome to the real world. First lesson - you can get-away-with-ANYTHING. kapitsce? As long as you dont "mess" with us - OK? Dont "mess"up - thats the second lesson. Now where is that Double-Latte you were going to bring me?
    Nov 14, 2014. 08:22 PM | Likes Like |Link to Comment
  • Contemplating Stocks Without QE [View article]
    Lets all support the most extreme wing of the nuthouse sector of the Republican Party. Agree to go along with Barney and the Dinosaurs freely roaming the earth hand in hand - whatever. But they may be our only shot to audit the Fed and clip their wings - severely.
    Nov 14, 2014. 07:35 PM | Likes Like |Link to Comment
  • Contemplating Stocks Without QE [View article]
    No one has ever explained the mechanics of how QE supposedly makes stocks go up. QE has kept bond yields down - I get that. Some folks get tired of eating dog-food with their $1 million savings yielding $10000/yr - and go buy stocks hoping for more - sure I get that.
    But - thats not what we have seen in the markets. What we see is 3:30 pm regular spikes in the S&P. Midnight raids on gold . Corrections mysteriously turned around with huge force.
    That is not mom and pop deciding to put $10K into stocks. Does not feel like it - first of all mom and pop are sound asleep at midnight and pop is working the flower garden at 3:30pm.
    The answer is - Central Banks are not relying on anything as subtle as dropping bond yields and hoping mom and pop start buying stocks. Ore giving speeches to alter the psychology of the great unwashed masses and praying they buy stocks. No.
    They are directly buying stocks and etfs. They have a preferential commission schedule at the CME to trade emini futures, oil, gold etc to their hearts content. Futures is perfect for the CBs is'nt it - if they get a margin call, they just print up some more money and wire it in. The BOJ like to buy ETFs , the Swiss National Bank is partial to small cap stocks according to their annual report. I am sure the others are in it too- would be surprised if the Fed is not in it through foreign proxies.
    So - lets see. These CBs with massively market moving non-public material information are playing in our beloved markets. Can you just imagine - after a nice lunch the CB chiefs retire to their hotel rooms in Davos and place calls in to their traders based on what the other CBs said at lunch!! Perfect- Green Horsehoe loves Blue .... aaaah fuggetit.
    So- lets see, the SNB prints up some Swiss Francs, swaps it to Dollars using the Feds generous swap facility and goes shopping for stocks - out-bidding mom and pop ( who had to work for 30 years in coal mines to save up their pennies). Nice.
    And do you think the Fed has no influence on what the other CBs buy, when they buy etc? Really? None of them would be able to do anything without the explicit blessing of the Fed - play nice or lose your swap line or worse.
    Brute force - softened with academic gobbledygook - thats the Fed for ya.
    Nov 14, 2014. 07:21 PM | 3 Likes Like |Link to Comment
  • House passes bill to approve Keystone XL [View news story]
    Nov 14, 2014. 06:59 PM | 2 Likes Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    Iam afraid the Fed has basically starved investors of yield with ZIRP and QE. Now they and their CB buddies have driven stocks up to levels where the returns going forward will be low single digits at best . They have probably also forced a lot of innocents way out on the risk limb, enabled massive misallocation of capital into marginal projects and set us all up for an even bigger crash than 2008. Starting with the shale oil bubble - and its associated junk bonds, sub-prime auto loans and god knows what else.
    Iam rooting for the extreme wing of the Republican party to take their gloves off and fight for our liberty like real men. The next crash should be followed by serious criminal investigations, audits and public trials. No more secret backroom deals to hand blank checks to the Fed/ banking cabal.
    Nov 14, 2014. 06:13 PM | 2 Likes Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    Did you see that link to the Zerohedge piece on the SNB? So we have the BOJ and the SNB confirmed to be directly buying stocks.
    Two problems with this:
    1. Do these CBs not have material non-public information that moves stock markets? Sure they do. Are they not subject to insider trading laws?
    2. Are they involved in markets with a pure profit motive? ( Hilarious concept for entities that print money). If not are they involved simply to manipulate markets for political reasons? ( very likely). Is market manipulation on a huge and continuous basis legal?
    Nov 14, 2014. 06:00 PM | Likes Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    lets hope the new Congress is able to pass a bill to properly audit the Fed. I would love to know how they are operating with other CBs to buy stocks and futures. I would like them to try to explain why .
    Nov 14, 2014. 03:52 PM | 1 Like Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    I have wondered for a while how exactly QE was driving up stocks. Well maybe it is quite simple - CBs are just directly buying stocks, etfs and futures. They have unlimited printed money to play with.
    Nov 14, 2014. 03:48 PM | Likes Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    I wonder why these CBs are not subject to insider trading rules. I mean they can load up on futures and go out a give a speech to make money on their positions! They have non-public information on monetary policy - that drives all asset prices. Where is the SEC on this?
    Nov 14, 2014. 03:38 PM | 1 Like Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]

    Are people aware that Central Banks are directly buying stocks, etfs and have a preferential commission schedule at the CME for trading futures?
    So SNB prints up some franks, uses the Fed's generous swap line to convert to Dollars and buys small cap stocks?!! is BOJ trading emini futures at midnight? Do CBs collectively own almost half of the market cap of all the publicly traded cos in the world? Seems like its true.
    This is extremely disturbing.
    Nov 14, 2014. 03:36 PM | 1 Like Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    The Fed has single-handedly driven a former liberal democrat type into the arms of the Tea Party yahoos. I'll even giggle and go along with their theories of evolution . Just to get rid of the parasite .
    Nov 13, 2014. 10:21 PM | 5 Likes Like |Link to Comment
  • Is The Fed Targeting Another Bubble In Stocks? [View article]
    I would love to ask Ms Yellen the following question:
    At the end of a career of hard work - how much does a person need to have saved to live on? How about a successful career - ending with $1 million in savings? is that enough? If it is'nt then better inform the country that your intention is that everyone work till they expire - on the job.
    Bonus question: Are you planning on making reparations to the population of the USA for the theft of Over $1 Trillion from the checking accts and savings accts of firemen, policemen, nurses? I calculate that there is about $12 Trillion in MZM, earning a negative real rate of approx 2%. That is $$200bn /yr or $1.2 Trillion over 6 years.
    And that 2% inflation rate is your artificial Core PCE ex items BS. Food, fuel, education, property taxes and insurance premiums have inflated at about 5%/yr.
    Would you advice Americans to leave their savings in safe bank accounts ? Or are you asking all Americans to buy junk bonds, equities etc. Is it too much to ask that you provide a system of money that holds its value over time? Do you have some more important agenda?
    Nov 13, 2014. 10:15 PM | 3 Likes Like |Link to Comment