Global Fiat Fiasco

China's Christmas Present To The World: Another Interest Rate Hike

2010-12-26T16:08:00.001-08:00

Following Friday's failed 3 Month Bill auction, things in China are once again getting interesting, just as the rest of the world has decided to sleep right into 2011. The PBoC, in a surprise move, hiked its lending and deposits rates by 0.25%, the second time the bank has done so since October 19, when its then-raise was the first in 3 years. And by all accounts the PBoC is not done: consensus

The Day The Dollar Died

2010-11-25T15:04:00.000-08:00

The Day The Dollar Died

The End Of The Dollar Carry Trade? Presenting The Dollar Short Panic In A Burning Theater

2010-11-25T15:02:00.000-08:00

After it became fashionable to say one was short the dollar at cocktail parties, the net result was a surge in CFTC-reported spec USD gross short positions and a plunge in net USD exposure. And since options traders are nothing but momentum chasing lemmings the theater is now fully on fire. Granted, while some of the recent spike in short interest has been covered, there are still just over a

$598 Billion Wellington Management Busted

2010-11-25T15:00:00.000-08:00

Not just hedge funds any more. Insider trading probe moves to mutual funds. And yes, hedge and mutual funds are perfectly happy to pay $1,000/hour for information that is completely public and totally accessible to everyone... Top 25 holdings: Exxon, Pfizer, Wells, Merck and, tada, Apple.

European Bloodbath Intensifies As Spanish Bond Yield Hits All Time Highs, EURUSD On Verge Of Going Bidless

2010-11-25T14:57:00.000-08:00

As we speculated two weeks ago, the key word that will be regurgitated by all pundits through the end of the year is "contagion". Sure enough, the bond vigilantes who are now fully awake and stretching have brought a mauling to Spanish bonds, where 10 Year yields are now at lifetime highs. The chart below shows what will happen to US bond prices sooner or later. Should the 10 Year experience such

Guest Post: It's Official: The Economy Is Set To Starve

2010-11-24T14:04:00.000-08:00

It's Official: The Economy Is Set To Starve Once a year, the International Energy Agency (IEA) releases its World Energy Outlook (WEO), and it's our tradition here at ChrisMartenson.com to review it. A lot of articles have already been written on the WEO 2010 report, and I don't wish to tread an already well-worn path, but the subject is just too important to leave relegate to a single week

Citadel Receives Subpoena

2010-11-24T14:01:00.001-08:00

Putting a cheery on top of one of the best days in capital markets history, FOX Business Network’s Charlie Gasparino is reporting that Citadel Investment Group, the giant hedge fund run by Ken Griffin, has received a subpoena from the Department of Justice. It is unclear if the Chicago's fund long-rumored 'dark pool' dealings with Brian Sack's Open Market Group will be exposed as a result. From

Much Ado About Nothing: China, Russia Drop Dollar In Bilateral Trade

2010-11-24T14:00:00.001-08:00

Somehow the China Daily story we pointed out yesterday morning that China and Russia are expanding their trading terms and will conduct all bilateral trade exclusively in local currencies, thus dropping the dollar as an intermediary, is only today starting to make the rounds. Alas, this story is nothing but more posturing for several reasons: Bloomberg notes: "China and Russia will drop the U.S.

It's Official: There Is Not Enough Money To Bail Out Spain

2010-11-24T13:57:00.001-08:00

It seems that the European bailout buck will stop with Portugal for one simple reason: when Europe created the EFSF it did not think it would need to serially bail out everyone; now the EFSF does not have enough money to cover a bailout of Spain. From Dow Jones: "The European emergency fund, promoted as having the financial firepower to douse a financial crisis in the euro zone, may not even have

29 Consecutive Equity Mutual Fund Outflows

2010-11-24T13:54:00.000-08:00

Any minute now, any minute, we promise, investors will regain all their confidence in this non-charade of a market which reflects all the fundamental realities of the economy. Just not yet: last week saw the 29th consecutive outflow from domestic mutual fund flows, which incidentally surged to $2.8 billion from the $677 million outflow the week prior. Sarcasm aside, nobody except for CNBC's Fast

Dazed and Confused: The Fed’s Clouded Vision Of The Future

2010-11-24T13:52:00.001-08:00

If you are looking for guidance and clarity from the Federal Reserve, your trust will be misplaced. The recently released minutes of the Federal Reserve Open Market Committee's (FOMC) November meeting reveal a deeply divided Fed with no clear consensus on the effectiveness of their policies. Their review of recent (publicly available) data and their assessment of the current state of

What happens when people lose faith?

2010-11-23T18:54:00.001-08:00

the 'letter' of the law is being used to circumvent a Constitutional Republic. mistakes? of course, there will be a few. even silver-spooned ivy league twats get it wrong every thousand times in a while. just as long as you're not in the wrong group of livestock, then its no big deal. http://en.wikipedia.org/wiki/Holodomor why even criticize our ruling elite? Senator Rockefeller says there is no

US Bankruptcy

2010-11-23T18:53:00.001-08:00

"To-day I may tell you that our goal is now only a few steps off. There remains a small space to cross and the whole long path we have trodden is ready now to close its cycle of the Symbolic Snake... When this ring closes, all the States of Europe will be locked in its coil as in a powerful vice." "What form of administrative rule can be given to communities in which corruption has penetrated

Has the Dollar ALREADY Lost Its Status As World Reserve Currency?

2010-11-21T07:01:00.000-08:00

These are headlines from the past 2 days: Is China's Renminbi Already The New Reserve Currency? World Bank chief calls for new gold standard China Downgrades US Again, From AA To A+, Outlook Negative, Sees "Long-Term Recession", Blasts QE2, Expects Creditor Retaliation Citi: Central Banks Are Going To Start Dumping Dollars In The Coming Weeks ICE Starts Accepting Gold As Initial Margin

"Resistance to Tyranny is Obedience to God"

2010-11-21T06:57:00.001-08:00

I've previously written that real men stand up to fascists: The fascists' view of masculinity is that -- to be a real American man -- you have to rally around the "strong leader", you have to talk tough about the "war on terror", you have to get pleasure out of watching "our team" (the sole superpower) beat the stuffing out of a bunch of third-rate armies like Iraq and Afghanistan. Are they

The Fed Is Saying One Thing But Doing Something Very Different

2010-11-21T06:56:00.000-08:00

Ben Bernanke has said that the Fed is trying to promote inflation, increase lending, reduce unemployment, and stimulate the economy.However, the Fed has arguably - to some extent - been working against all of these goals. For example, as I reported in March, the Fed has been paying the big banks high enough interest on the funds which they deposit

Time-Lapse Video Of Food Stamp Participation Rates During The "New Normal"

2010-11-21T06:49:00.000-08:00

With everyone chanting the praises of the "better than abysmal" economy, we decided to post a time lapse video (since cartoons are all that stand an even remote chance of attracting some attention) prepared by John Lohman, of just how the New Normal has been progressing, both since the starts of the great depression in December 2007, and more importantly, since the beginning of the "end" of the

Is Anyone Actually Bothering to Fact-Check the Fed’s Claims?

2010-11-20T17:29:00.000-08:00

The primary reason Bernanke claims to be engaging in QE at all is to keep interest rates low to sustain the housing market (and allegedly help the economy). However, even a cursory look at the situation shows he is either lying or somehow manages to monitor the US monetary system WITHOUT actually ever look at price levels. Either one of those options is enough to give you a chill… and illustrate

Conservative Affirmative Action

2010-11-20T17:27:00.001-08:00

I believe that people should be judged on their abilities alone. I admire people of all persuasions who do well at their chosen path. Mostly I am talking about people's ability to do a job well. Be they in business, be they a bureaucrat, be they a lawyer, doctor, or architect, be they warriors, be they athlete, artist, writer, scientist, teacher, or politician (well not many of those). I don't

Guest Post: The Banality Of (Financial) Evil

2010-11-20T17:26:00.001-08:00

The Banality Of (Financial) Evil The financialized American economy and Central State are now totally dependent on a steady flow of lies and propaganda for their very survival. Were the truth told, the status quo would collapse in a foul, rotten heap. Google's famous "don't be evil" is reversed in the American Central State and financial "industry": be evil, because everyone else is evil, too.

Guest Post: Germany Unwittingly Adopts A Silver Standard Due to Soaring Price

2010-11-20T17:24:00.001-08:00

Germany Unwittingly Adopts A Silver Standard Due to Soaring Price Silver's sky-shot to a new 30-year high of $27.73 per ounce has led to a new phenomenon in Germany. For the first time in history it is theoretically possible to buy two last series of silver coins with a denomination of €10 and a silver content of 0.535 ounces for less than the silver equivalent. According to a report in German

Pentagon Can't Explain "Missile" Sighting, NORAD Believes It Is Not A Foreign Military Object

2010-11-20T17:22:00.000-08:00

A crazy day in the markets closes, and one of the biggest non-market related stories still has no closure. As per the AP, nobody still has any clue what the "missile" sighting was. A suggestion being floated by the Pentagon is that this may have been a "private company." NORAD chimes in: "We can confirm that there is no threat to our nation, and from all indications this was not a launch by a

Jim Rickards On Silver Margin Changes, Peter Schiff On A New World Gold Standard

2010-11-20T17:17:00.001-08:00

A couple of luminaries share their perspectives on recent developments in the precious metal space. First, we have Jim Rickards sharing his thoughts on what today's Comex margin hike means for trading. And second, and just as important, is Peter Schiff, who grades WB president Robert Zoellick's call for a new gold standards, and its implications for the future. Both are as always insightful and

Gonzalo Lira And The Boiling Frog: Effects Of QE2 On The Bottom 80% Of The U.S. Population

2010-11-20T17:13:00.001-08:00

The Boiling Frog: Effects of QE2 On The Bottom 80% of the U.S. Population An old metaphor: If you take a frog and drop it into a roiling pot of boiling water, it’ll jump right out, unscathed. But if you put that same frog in a pot of cold water, and then slowly raise the heat, that frog won’t move. It’ll stay in that pot of water, calm as can be, right up until it is boiled to death. I’ve been

Further Observations On The Parabolic Blow Off In Federal Compensation

2010-11-20T17:09:00.000-08:00

Earlier, we pointed out that over the past five years (with an emphasis on the past two), government worker compensation has exploded. As the topic appears to have touched a nerve, and will shortly become the topic du jour across every radio and talk show, here are some additional observations on this parabolic blow off top of a different nature from ConfluentResearch. Going Parabolic, it's not