IF WE LOOK AT CLINTON/BUSH/OBAMA---NOW TRUMP WE SEE THE SAME DYNAMIC-----THIS IS THE ELECTION FRAUD----THE MOVEMENT OF ALL WEALTH TO THE TOP 1% AND THEIR 2%----THE CORRUPTION OF OUR LABOR AND JUSTICE ORGANIZATIONS-----AND YES, THE POLICE BECOME THE SAME.
PRI won every Presidential election filling every seat in Senate, state and city executives-----SAME AS TODAY IN THE US.
'To this end, any means became justified: Between 1929 to 1982, the PRI won every presidential election by margins of over 70 percent -- which were obtained usually by massive electoral fraud. The party also held an overwhelming majority in the Chamber of Deputies, every seat in the Senate, and every state governorship'.
So, this is the TOP PRIORITY FOR BOTH US POLITICAL PARTY VOTERS. If we do not get these election frauds fixed these Robber Baron pols will continue to suck all wealth to the top----and our taxes, fees, fines will soar as is happening now.
Below you see the same transitions here in the US as occurred in Greece just after 2008 economic crash brought Greece to the GREAT DEPRESSION----that nation's rich offshored their wealth and renounced citizenship to avoid losses from WORLD BANK/IMF takeover. Meanwhile World Bank/IMF are selling GREEK real estate----infrastructure----historical public assets to global rich under the guise of generating revenue to replace the massive frauds Greek Robber Baron pols took from the GREEK people. Same occurred in Latin American nations as wealth moved to the top. So, we are back to 1929----a century ago around the world when the global 1% and their 2% did the same as is happening today. Do US 1% and their 2% care if America is taken to colonial status to exploit as any developing nation? OF COURSE NOT----ALL THEIR WEALTH IS OVERSEAS AND THEY ARE SENDING IN THE CLOWNS.
Growing Number of Wealthy Renounce US Citizenship
USA Immigration. (Photo: Reuters)
Published 8 August 2014
While immigration from Central America continues, raising the ire of U.S. Conservatives, a growing number of wealthy U.S. Citizens are renouncing citizenship to avoid paying taxes.In the last quarter of 2013, 603 U.S. citizens renounced their citizenship, bringing the total number of people to deny their citizenship to 3000 for the year - three times more than the previous year. The trend of well-to-do U.S. citizens renouncing their citizens as new tax rules come into affect for citizens living abroad, runs starkly in contrast to the continuing wave of immigrants flood into the United States from Central America and elsewhere.
The Foreign Account Tax Compliance Act (FATCA), which came into effect on December 31, 2012, compels foreign banks and other financial institutions to provide information to the Internal Revenue System (IRS) about Americans holding accounts abroad. The idea has been to catch as many non-compliant U.S. taxpayers as possible - those who might be stashing away money in foreign bank accounts.
Some Americans have complained that this new rule will make it hard to obtain simple bank accounts. The United States is one of the only countries in the world known to tax the income of its citizens based on nationality rather than residency. However, citizens who earn below $97,600 annually can claim an exclusion.
Most of the Americans leaving the U.S. are going to Europe. Matthew Ledvina, a U.S tax lawyer at Anaford AG in Zurich told Bloomberg news "FATCA and the Swiss bank disclosure program has intensified the search for U.S. nationals beyond all measure. 'It's shocking the levels of due diligence they are going through to ensure they have cleaned house."
Those renouncing their citizenship are looking to evade having the IRS assess their foreign account, and hence, evade paying taxes to the U.S. government.
Obviously, the number of those renouncing their citizenship to evade U.S. tax laws, is far less than that of people trying to obtain U.S. residency, let alone citizenship.
The recent attention to the thousands of unaccompanied minors from Central America crossing into the United States, has once again ratched up anti-immigration sentiments and legislation. Last week the House of Representatives speed up the process for deporting Central American children crossing the border into the United States, with a US$694 million border plan that includes an increase in National Guard troops in Texas.
This bill will essentially block President Obama from taking action on immigration, while seeking to reverse the few advances made by his administration including Deferred Action for Childhood Arrivals program.
There is an irony - and perhaps farce - in the fact that these two trends are occuring at the same time and yet are viewed and treated so differently. On the one hand, wealthy Americans are willing to forfeit their citizenship to not pay the government who are seldom talked about and viewed with ambivalence by law makers. On the other, thousands who risk their lives attempting to get into the country on the hope that they can work, become regularized and pay taxes, demonized and subject a barrage of policies designed to repel, punish and expel.
As US national media PRETENDS US rich are leaving to protect themselves from TAXES------the exodus of US rich these few years is tied to the coming economic crash from massive US Treasury and municipal bond market fraud----and they are moving all their wealth offshore so they do not have WORLD BANK/IMF confiscate their assets as these global banks are brought to the US to bail out our bankrupt national, state, and city coffers---loaded with credit bond debt and leverage.
IT'S NOT THE TAXES----IT IS THE COMING ECONOMIC CRASH.
So, what happens when foreign 1% and their 2% these several years buy lots of US real estate especially in US cities deemed Foreign Economic Zones? Well, first they will be exempt from any losses as they are not US citizens. Next, the $20 trillion in national debt from US Treasury subpriming including to foreign national governments like China,Japan, Brazil, Mexico----that debt will be paid by giving even more real estate in US cities in payment of US Treasury bond debt. This is what MOVING FORWARD looks like with millions of global labor pool being brought to US cities by foreign national corporations. This is how CLINTON/BUSH/OBAMA----AND THEIR ROBBER BARON POLS make a colonial entity of America----with no more WE THE PEOPLE. Everyone in and no one out---black, brown, and white. These deals are great for the global 1% and their 2% but as always Latin American 99% of citizens----enslaved-------99% of Asian immigrant citizens enslaved-----99% of African immigrants enslaved----and CLINTON/BUSH/OBAMA ready to do the same to American citizens.
While Clinton/Obama Congressional pols and media PRETEND a Trump is going to kill SS Trusts, Medicare, public and private pensions-----the Clinton Wall STreet global corporate neo-liberals already have and have offshored tens of trillions of dollars in US Treasury bond wealth coming their way when Trump, FED, and Wall Street PRETEND they have to pay off all US creditors holding bond debt.
Greek banks hit by wealthy citizens moving their money offshore
Greek banks are being hit by a wave of redemptions as the country's most wealthy citizens and corporations look to move their money offshore or to international financial institutions perceived as safer homes for their assets.
Greece has recently been rocked by mass protests over its huge debt
By Harry Wilson
10:13PM BST 05 Apr 2010
Wealthy Greeks and companies have been clamouring to move their cash deposits to banks such as HSBC or France's Société Générale, which operate large branches in the country. They are among those to have received several billion euros of new money in recent weeks
HSBC's private banking in the country is understood to have been flooded with business, while the local operations of several other major international banks have already seen large inflows of money. A spokesman for HSBC declined to comment.
Eurozone countries are still at loggerheads on bailing out the southern European nation, with Germany believed to be in conflict with other countries in the single currency over how much interest to charge on the emergency loans package. Germany wants interest rates of 6pc to 6.5pc, with other countries willing to accept 4pc to 4.5pc interest.
More than €3bn (£2.6bn) of deposits held by Greek households and companies left the country in February, while in January about €5bn of deposits were moved out, according to the latest figures available from the Bank of Greece.
Switzerland, the UK and Cyprus have been the largest recipients of the money, with the wealthiest Greeks looking to move their deposits to Swiss banks accounts to escape the more punitive tax measures many fear will be introduced in the wake of the country's economic crisis.
John Raymond, a banks analyst at CreditSights, said that on a visit to Athens last week capital flight was the number one issue worrying most Greek bankers. "The banks themselves are concerned by it because they can't get funding elsewhere at the moment," he said.
"Greek banks won't be able to increase lending volumes if deposits don't increase, and a continued deterioration in their deposit base will lead them to cut back lending even more, stifling real economic growth."
Recent bond issues by the Greek government have struggled to find much demand and fears are growing that the country could become the first Western nation to default on its debt, stoking fears among Greeks over the stability of not just the country's banks but the entire economy.
"Most bankers say they are worried about the stability of Greece and Greek banks. This combined with the tax issue is making many people nervous about keeping their money in domestic banks or within the country," said Mr Raymond.
When the US is broken down into North American Foreign Economic Zones operating under a global corporate tribunal ---there will be no US Rule of Law, US Constitution-----and as this article hints to----there will be no FEDERAL for a Federal Reserve so the FED will be restructured or will no longer be needed to implode the American economy with fraud and boom and bust bubbles to move all wealth to the top.
What overseas Foreign Economic Zones have are ties to WORLD BANK AND IMF. What we hear from the World Bank is the desire to have a global FED -----THAT IS A GLOBAL CENTRAL BANK. That is to what this article refers. What Trump is doing is POSING CONSERVATIVE-----to Republican voters wanting the FED abolished---he is PRETENDING to do this.
Remember, it was the FED under Greenspan that championed the massive subprime mortgage fraud under Bush AND the FED under Bernanke that championed the even more massive US Treasury and municipal bond debt fraud------the US economy was great until the FED was installed a century ago just in time to create the massive Wall Street fraud bringing the GREAT DEPRESSION.
Trump: I Will Abolish The Federal Reserve
Trump: I Will Abolish The Federal Reserve
Posted on December 4, 2016 by Sean Adl-Tabatabai
Donald Trump has vowed to abolish the Federal Reserve and reinstate the gold standard when he enters the White House in January.
One of Trump’s picks for the Treasury Department Secretary, John Allison, hinted that he will implement the gold standard when the current Federal Reserve Chief, Janet Yellen, retires in 2018.
On the campaign trail, Trump often questioned the future of the Federal Reserve’s political independence. In line with these comments, Allison wants to abolish Federal Reserve all together and go back to the gold standard.
In fact, Allison takes that rhetoric one step further. While acting as the head of the Cato Institute, Allison published several thesis indicating that the Federal Reserve was obsolete and needed to be abolished as it restricts power from the people and allows billionaire cronies to run banks globally.
“I would get rid of the Federal Reserve because the volatility in the economy is primarily caused by the Fed,” Allison wrote in 2014 for the Cato Journal.
As an alternative, Allison argues that if we allow the market to regulate itself, it would be preferable to the Federal Reserve harming the stability of the financial system.
“When the Fed is radically changing the money supply, distorting interest rates, and over-regulating the financial sector, it makes rational economic calculation difficult,” Allison wrote. “Markets do form bubbles, but the Fed makes them worse.”
The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913. This chart alone proves that theory:
The Federal Reserve systematically penalizes those that try to save their money. Inflation is a tax, and the value of each one of our dollars goes down a little bit more every single day.
The Federal Reserve system was also designed to trap people. The intent of the bankers was to trap the U.S. government in an endless debt spiral from which it could never escape, and most Americans don’t understand this. In fact, most Americans don’t even understand where money comes from or how he value it.
Point blank, the Federal reserves needs to be abolished if we are ever going to reduce our national debt, create jobs, and give more power back to the people.
A vast majority of these proposals are directly aligned with Donald Trump’s desire to rollback regulations— including Dodd-Frank — on financial institutions, as well.
It would provide a more stable means for markets as well as allowing the monopolization of banks to be broken down instead of allowing less than ten people to control all of the worlds banks.
The Federal Reserve is at the heart of most of the economic woes facing the US. Endless borrowing and money printing will result in massive inflation, and interest rates cannot stay low forever. We could very well see the market collapse again if we do not make drastic changes.
Trump’s meeting is more than notable, it is almost groundbreaking. No president has dared to take power away from the Rothschilds’ and other billionaire elites that control all of the worlds banks.
We could possibly be taking steps to eliminate one of the most corrupt banking schemes to ever take hold in this country.
Should Donald Trump work to abolish the Federal Reserve?
WHAT A FARCE!!!
We have discussed since 2010 the goals of the FED under Bernanke being to bring a GREAT DEPRESSION like the one a century ago but the US wealth is far greater today then it was back in 1920s----so CLINTON/BUSH/OBAMA AND THE FED HAD TO DO IT IN STEPS----Bernanke created the US Treasury bond leverage debt and loaded the FED with mortgage loan buyback debt taking what was those nasty subprime mortgage toxic loans---the worst of the worst off the hands of Wall STreet banks to RECAPITALIZE them. That is why the FED says today our Wall STreet banks are capitalized. Guess where all that toxic subprime mortgage loan fraud bought by the FED will end? That's right-----our US Treasury will pay for that worst of the worst fraudulent bond debt.
Between the FED sovereign debt and the US TREASURY sovereign debt the US economy was prepared to crash back in 2013. National financial analysts have reported this economic crash happening anytime because the debt is too large to continue. The only thing keeping the economy afloat these few more years was FED interest rate MANIPULATION keeping the rate at zero as everyone knew the REAL rate is far higher. It will be the raising of this FED interest rate that will send global US TREASURY investors flying from our US bonds causing the coming economic crash.
IT WILL NOT BE TRUMP---IT WILL NOT BE CHINA----THIS WAS ALL PLANNED AND LOOKS JUST LIKE WHAT WAS DONE A CENTURY AGO TO BRING THE GREAT DEPRESSION AND KILL ALL WEALTH FOR THE 5% TO THE 1%----MOVING ALL WEALTH TO THE TOP AND IT WAS ALL ILLEGAL-----IT WAS ALL FRAUD---AND NOT A WORD FROM ANY LABOR, JUSTICE, NATIONAL MEDIA----
Because---as we showed with Mexico-----those labor and justice leaders are corrupt and tied to the rich and all this corruption.
Yellen says-----DOES IT LOOK LIKE I AM REALLY DOING ANYTHING OR CAN THE WORLD TELL THIS IS ALL A FIX?
Yellen says Fed could raise interest rates 'relatively soon'
Rate hike "relatively soon" - Yellen
By Howard Schneider and Jason Lange | WASHINGTON
The election of Donald Trump as U.S. president has done nothing to change the Federal Reserve's plans for a rate increase "relatively soon," Fed Chair Janet Yellen said on Thursday in Congressional testimony that included a pledge to serve out her term.
Yellen said the U.S. central bank would change its outlook as necessary as the new administration rolls out plans for perhaps hundreds of billions of dollars in tax cuts and additional government spending. She also suggested the new government keep in mind that the United States is near full employment and inflation may be rising.
"Markets are anticipating ... a fiscal package that involves a net expansionary stance of policy and that in a context of an economy that is operating reasonably close to maximum employment with inflation heading back to 2 percent," Yellen said, suggesting new programs focus on "policies that would improve ... long run growth and productivity."
There had been some uncertainty about how Yellen would interact with a new president who at turns during the campaign spoke favorably of the Fed's low rate policies, and yet also accused the Fed of acting politically to help Democratic nominee Hillary Clinton.
Trump, during his election campaign, had also said he would replace Yellen when her term expires. Asked directly by a member of the Joint Economic Committee on Thursday, Yellen said she planned to serve out her term as chair, which ends in 2018.
While the election has not affected matters yet, they may find themselves at odds if Trump, for example, pursues a roll-back of financial regulations.
On that topic, Yellen cautioned against any effort to "turn back the clock" on the Dodd-Frank financial regulations approved following the 2007 to 2009 financial crisis because that could make a repeat more likely.
For the time being, Yellen said, incoming economic data justified a rate hike "relatively soon" and, absent any dramatic changes, a gradual pace of hikes after that.
"The evidence we have seen since we met in November is consistent with our expectation of strengthening growth and improving labor markets and inflation moving up," Yellen said. "The risk of falling behind the curve in the near future appears limited."
However the chair also acknowledged the uncertainty that may lie ahead as President-elect Trump rolls out his program.
"When there is greater clarity about the economic policies that might be put into effect the (Federal Open Market Committee) will have to factor those assessments of their impact on employment and inflation and perhaps adjust our outlook," Yellen said.
U.S. Treasury yields rose on Thursday after data suggested the U.S. labor market is tightening and inflation is beginning to gain traction, which prompted investors to sell government debt.
"Yellen is saying it's full steam ahead for a Fed hike in December," said Luke Bartholomew, fixed income investment manager at Aberdeen Asset Management. "The big question is what happens after that. Trump's election has given investors plenty of reason to question the lower for longer mantra."
The U.S. dollar rose to a 13-1/2-year high against a basket of currencies on Thursday as the bond market resumed its sell-off.
CENTRAL BANK INDEPENDENCE PRODUCES BETTER OUTCOMES
Yellen also repeated the consensus among central bankers that remaining clear of politics was central to their job, a message the Fed has repeated to Congressional Republicans who have argued for closer oversight of monetary policy.
"There is clear evidence of better outcomes in countries where central banks can take the long view," Yellen said. "Sometimes central banks need to do things that are not immediately popular for the health of the economy."
The Fed may face pressure, given Republican control of the White House and both chambers of Congress, to hew to a more mathematical formula for setting rates, something central bankers in general argue should not fully displace their judgment.
Yellen spoke on a day when economic data showed continuing economic momentum, with consumer prices posting their largest gain in six months, new home construction soaring and new claims for unemployment benefits near 43-year lows.
The data underscored Yellen's generally upbeat assessment of where the country stands. There remains "room to run" in the U.S. recovery, Yellen said, and rate increases can likely proceed on a gradual basis. But she noted that wages were rising, growth had accelerated over the second half of the year, and the world economy was on a firmer footing than it had been in recent months when uncertainty about China and Europe had caused the Fed to postpone its rate increase plans.
"U.S. economic growth appears to have picked up," Yellen said.
Keep in mind----as with all Wall Street economic crashes----they are tied to an incoming US President and these crashes always change what was a campaign agenda to RESCUING THE US ECONOMY.
Below we see national media will PRETEND that new CFTC created to protect WE THE PEOPLE has been silent throughout this massive US TREASURY and state municipal bond market fraud which amateur economic analysts like me were able to identify several years ago. So nothing was done to alert the 99% and yet again it will be only MAIN STREET---YOU AND I----THAT WILL TAKE THESE LOSSES. One thing this article identifies as we said----there will be a chain reaction of US corporate bankruptcies----community and credit union banks as well-----creating THE NEED TO FOLD THEM INTO MULTI-NATIONAL CORPORATIONS AND GLOBAL BANKING.
This will place the US in the same condition as any third world nation brought to IMF bankruptcy......especially our US cities deemed Foreign Economic Zones---like Baltimore.
THIS IS WHAT MOVING FORWARD WITH THE MASTER PLAN FOR A NEW CITY MEANS --------FOR BALTIMORE THAT MEANS BECOMING BLOOMBERG FOREIGN ECONOMIC ZONE 2 NORTH AMERICA formerly Baltimore MD USA.
'The CFTC, which started to investigate ISDAfix after last summer’s Libor scandal has now been handed emails and phone call recordings that show the rate was deliberately moved, according to Bloomberg'.
While marches against a Trump election and a great action over Dakota water rights brings out US citizens in protest-----NOT A WORD ABOUT THIS DEVASTATING ECONOMIC CRASH ON ITS WAY. It could have been prevented---we were shouting back in 2012-----but WE THE PEOPLE were asleep at the wheel.
Think about the politics of Mexico----all the corruption in all institutions----one party rule-----all the violence and civil unrest---and we can see what these several years under TRUMP was slated to look like.....FAR-RIGHT, AUTHORITARIAN, MILITARISTIC, GLOBAL CORPORATE RULE, DICTATORSHIP....LIBERTARIAN MARXISM.
Billionaire Issues Chilling Warning About Interest Rate Derivatives
The Economic Collapse
Are You Prepared For The Coming Economic Collapse And The Next Great Depression?
Will rapidly rising interest rates rip through the U.S. financial system like a giant lawnmower blade? Yes, the U.S. economy survived much higher interest rates in the past, but at that time there were not hundreds of trillions of dollars worth of interest rate derivatives hanging over our financial system like a Sword of Damocles. This is something that I have been talking about for quite some time, and now a Mexican billionaire has come forward with a similar warning. Hugo Salinas Price was the founder of the Elektra retail chain down in Mexico, and he is extremely concerned that rising interest rates could burst the derivatives bubble and cause “massive bankruptcies around the globe”. Of course there are a whole lot of people out there that would be quite glad to see the “too big to fail” banks go bankrupt, but the truth is that if they go down our entire economy will go down with them. Our situation is similar to a patient with a very advanced stage of cancer. You can try to kill the cancer with drugs, but you will almost certainly kill the patient at the same time. Well, that is essentially what our relationship with the big banks is like. Our entire economic system is based on credit, and just like we saw back in 2008, if the big banks start failing credit freezes up and suddenly nobody can get any money for anything. When the next great credit crunch comes, every important number in our economy will rapidly start getting much worse.
The big banks are going to play a starring role in the next financial crash just like they did in the last one. Only this next crash may be quite a bit worse. Just check out what billionaire Hugo Salinas Price told King World News recently…
I think we are going to see a series of bankruptcies. I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis. This is going to bring down the derivatives system (and the financial system).
There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates. The spiking of interest rates in the United States may set that off. What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe.
What is going to be left after the dust settles is gold, and some people are going to have it and some people are not. Then the problem is going to be to hold on to what you’ve got because it’s not going to be a very pleasant world.
Right now, there are about 441 trillion dollars of interest rate derivatives sitting out there. If interest rates stay about where they are right now and they don’t go much higher, we will be fine. But if they start going much higher, all bets will be off and we could see financial carnage on a scale that we have never seen before.
And at the moment the big banks have got to behave themselves because the government is investigating allegations that they have been cheating pension funds and other investors out of millions of dollars by manipulating the trading of interest rate derivatives. The following is from an article that the Telegraph posted on Friday…
The Commodity Futures Trading Commission (CFTC) is probing 15 banks over allegations that they instructed brokers to carry out trades that would move ISDAfix, the leading benchmark rate for interest rate swaps.
Pension funds and companies who invest in interest rate derivatives often deal with banks to insure against big movements in the ISDAfix rate or to speculate on changes to interest rate swaps
ISDAfix is published each morning after banks submit bids for swaps via Icap, the inter-dealer broker, in a number of currencies. The CFTC has been investigating suggestions that the banks deliberately moved the rate in order to profit on these deals.
Given the hundreds of trillions of dollars worth of interest rate derivatives trades that occur annually, even the slightest manipulation can have a substantial effect. The CFTC, which started to investigate ISDAfix after last summer’s Libor scandal has now been handed emails and phone call recordings that show the rate was deliberately moved, according to Bloomberg.
Essentially they got their hands caught in the cookie jar and so they have got to play it straight (at least for now).
Meanwhile, it looks like the Fed may not be able to keep long-term interest rates down for much longer.
The Federal Reserve has been using quantitative easing to try to keep long-term interest rates low, but now some officials over at the Fed are becoming extremely alarmed about how bloated the Fed balance sheet has become. For example, the following was recently written by the head of the Dallas Fed, Richard Fisher…
This later program is referred to as quantitative easing, or QE, by the public and as large-scale asset purchases, or LSAPs, internally at the Fed. As a result of LSAPs conducted over three stages of QE, the Fed’s System Open Market Account now holds $2 trillion of Treasury securities and $1.3 trillion of agency and mortgage-backed securities (MBS). Since last fall, when we initiated the third stage of QE, we have regularly been purchasing $45 billion a month of Treasuries and $40 billion a month in MBS, meanwhile reinvesting the proceeds from the paydowns of our mortgage-based investments. The result is that our balance sheet has ballooned to more than $3.5 trillion. That’s $3.5 trillion, or $11,300 for every man, woman and child residing in the United States.
Fisher has compared the current Fed balance sheet to a “Gordian Knot”, and he hopes that the Fed will be able to unwind this knot without creating “market havoc”…
The point is:
We own a significant slice of these critical markets. This is, indeed, something of a Gordian Knot.
Those of you familiar with the Gordian legend know there were two versions to it: One holds that Alexander the Great simply dispatched with the problem by slicing the intractable knot in half with his sword; the other posits that Alexander pulled the knot out of its pole pin, exposed the two ends of the cord and proceeded to untie it. According to the myth, the oracles then divined that he would go on to conquer the world.
There is no Alexander to simply slice the complex knot that we have created with our rounds of QE. Instead, when the right time comes, we must carefully remove the program’s pole pin and gingerly unwind it so as not to prompt market havoc. For starters though, we need to stop building upon the knot. For this reason, I have advocated that we socialize the idea of the inevitability of our dialing back and eventually ending our LSAPs. In June, I argued for the Chairman to signal this possibility at his last press conference and at last week’s meeting suggested that we should gird our loins to make our first move this fall. We shall see if that recommendation obtains with the majority of the Committee.
But of course it should be obvious to everyone that the Fed is not going to be able to reduce the size of its balance sheet without causing huge distress in the financial markets. A few weeks ago, just the suggestion that the Fed may eventually begin to slow down the pace of quantitative easing caused the markets to throw an epic temper tantrum.
Unfortunately, the Fed may not be able to keep control of long-term interest rates even if they continue quantitative easing indefinitely. Over the past several weeks long-term interest rates have been rising steadily, and the yield on 10 year U.S. Treasuries crept a bit higher on Monday.
At this point, many on Wall Street are convinced that the bull market for bonds is over and that rates will eventually go much, much higher than they are right now no matter what the Fed does. The following is an excerpt from a recent CNBC article…
The Federal Reserve will lose control of interest rates as the “great rotation” out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months.
“It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher,” said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday.
If the yield on 10 year U.S. Treasuries does hit 6 percent, we are going to have a major disaster on our hands.
Hugo Salinas Price is exactly right – the derivatives bubble is the number one threat that our financial system is facing, and it could potentially bring down a whole bunch of our big banks.
But for the moment, Wall Street is still in a euphoric mood. The Dow is near a record high and many investors are hoping that this rally will last for the rest of the year.
Unfortunately, I wouldn’t count on that happening. The truth is that the stock market has become completely divorced from economic reality.
Since March 2009, the size of the U.S. economy has grown by approximately $1.3 trillion, but stock market wealth has grown by an astounding $12 trillion.
And the stock market has just kept on rising even though GDP growth forecasts have been steadily falling.
It doesn’t make any sense.
But Obama, Bernanke and the wizards on Wall Street assure us that there is no end to the party in sight.
Believe them at your own peril.
The people at the controls are completely and totally clueless and we are rapidly careening toward disaster.
Perhaps we should do what one little town in Minnesota did and put a 4-year-old kid in charge.
That kid certainly could not be much worse than our current leadership, don’t you think?
THEY ARE NOT CLUELESS-----ALL THIS IS DELIBERATE, WILLFUL, AND DONE WITH MALICE-----GOOD OLD WALL STREET FRAUD AND GOVERNMENT CORRUPTION.