The Fallacy Of The Volcker Rule (Or “Fixing” The Banks In 5 Easy Steps)

The Fallacy Of The Volcker Rule (Or “Fixing” The Banks In 5 Easy Steps) (ZeroHedge, Dec 10, 2013):

Submitted by Peter Tchir of TF Market Advisors,

Volcker Rule – Who cares? I know we are supposed to care more about this convoluted rule, but we just can’t.

The concept that somehow “prop” trading brought down the banks seems silly.  The idea that market making desks were a dangerous part of the equation is ludicrous.

Read moreThe Fallacy Of The Volcker Rule (Or “Fixing” The Banks In 5 Easy Steps)

What A Confidential 1974 Memo To Paul Volcker Reveals About America’s True Views On Gold, Reserve Currency And ‘PetroGold’

What A Confidential 1974 Memo To Paul Volcker Reveals About America’s True Views On Gold, Reserve Currency And “PetroGold” (ZeroHedge, Nov 11, 2013):

Just over four years ago, we highlighted a recently declassified top secret 1968 telegram to the Secretary of State from the American Embassy in Paris, in which the big picture thinking behind the creation of the IMF’s Special Drawing Right (rolled out shortly thereafter in 1969), or SDRs, was laid out. In that memo it was revealed that despite what some may think, the fundamental driver behind the promotion of a supranational reserve paper currency had one goal in mind: allowing the US to “remain masters of gold.”

Specifically, this is among the top secret paragraphs said on a cold night in March 1968:

If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.’s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years.

Read moreWhat A Confidential 1974 Memo To Paul Volcker Reveals About America’s True Views On Gold, Reserve Currency And ‘PetroGold’

The Federal Reserve Cartel: Part IV: A Financial Parasite (Veterans Today)

@Amazon.com: Big Oil & Their Bankers In The Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network



The Federal Reserve Cartel: Part IV: A Financial Parasite (Veterans Today, Dec 14, 2012):

(Excerpted from Chapter 19: Big Oil & Their Bankers…Part four of a five-part series)

United World Federalists founder James Warburg’s father was Paul Warburg, who financed Hitler with help from Brown Brothers Harriman partner Prescott Bush. [1]

Colonel Ely Garrison was a close friend of both President Teddy Roosevelt and President Woodrow Wilson.  Garrison wrote in Roosevelt, Wilson and the Federal Reserve, “Paul Warburg was the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition.  The mastermind of both plans was Baron Alfred Rothschild of London.”

Read moreThe Federal Reserve Cartel: Part IV: A Financial Parasite (Veterans Today)

The Federal Reserve Cartel: Part III: The Roundtable & the Illuminati

FYI.


The Federal Reserve Cartel: Part III: The Roundtable & the Illuminati (Veterans Today, Dec 10, 2012):

According to former British intelligence agent John Coleman’s book, The Committee of 300, the Rothschilds exert political control through the secretive Business Roundtable, which they created in 1909 with the help of Lord Alfred Milner and South African industrialist Cecil Rhodes.  The Rhodes Scholarship is granted by Oxford University, while oil industry propagandist Cambridge Energy Research Associates operates out of the Rhodes-supported Cambridge University.

Rhodes founded De Beers and Standard Chartered Bank.  According to Gary Allen’s expose, The Rockefeller Files, Milner financed the Russian Bolsheviks on Rothschild’s behalf, with help from Jacob Schiff and Max Warburg.

Read moreThe Federal Reserve Cartel: Part III: The Roundtable & the Illuminati

Have The Last 5 Years Been Worse Than The Great Depression?

AGAIN: This is the ‘Greatest Depression’.


Have the Last 5 Years Been Worse than the Great Depression? (ZeroHedge, Sep 21, 2012):

What Do Economic Indicators Say?We’ve repeatedly pointed out that there are many indicators which show that the last 5 years have been worse than the Great Depression of the 1930s, including:

Mark McHugh reports:

Velocity of money is the  frequency with which a unit of money is spent on new goods and services.   It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling).  In a healthy economy, the same dollar is collected as payment and subsequently spent many times over.  In a depression, the velocity of money goes catatonic.  Velocity of money is calculated by simply dividing GDP by a given money supply.  This VoM chart using monetary base  should end any discussion of what ”this” is and whether or not anybody should be using the word “recovery” with a straight face:

In just four short years, our “enlightened” policy-makers have slowed money velocity to depths never seen in the Great Depression.

(As we’ve previously explained, the Fed has intentionally squashed money multipliers and money velocity as a way to battle inflation. And see this)

Indeed, the number of Americans relying on government assistance to obtain basic food may be higher now that during the Great Depression.  The only reason we don’t see the “soup lines” like we did in the 30s only because of the massive food stamp program.

Read moreHave The Last 5 Years Been Worse Than The Great Depression?

James Grant: We Are Now All Labrats Of Bernanke And ‘We Are All Living In A Land Of Speculation And Manipulation’ (Video)

Jim Grant: We Are Now All Labrats Of Bernanke And The Fourth Branch Of Government (ZeroHedge, Sep 20, 2012):

You put Jim Grant on TV and someone mentions the Fed and the result every single time is the equivalent of waving a red curtain in front of a rabid bull. This time was no different, as the Interest Rate Observer once again let Bernanke, with whom he clarified is no longer on speaking terms, have it. The ensuing central-planner bashing was in line with expectations, and just as we presented yesterday in “The Experiment Economy“, so too does Grant believe that the Fed is “learning by doing” and follows up by clarifying that this is an experiment, “and we are lab rats in the financial markets.” He then proceeds to lament that the credit markets, clueless NYT econopundits notwithstanding, have now lost all informational value as every rate instrument is purely in the manipulated domain of the Fed. “We are all living in a land of speculation and manipulation” is Grant’s summary of the current predicament of anyone who wishes to trade these “markets” and it may as well be the best synopsis of the New (ab)normal. And aside from an odd detour into Government Motors, Grant once again hones in on the only true antidote to central planner idiocy, gold: “the best thing about gold is that it’s got no P/E multiple. Gold is a speculation on an anticipated macroeconomic outcome, the systematic debasement of currencies by central banks. Why wouldn’t they do QE4? What intellectual argument do they have against doing it again, and again, and again.” Well…none.

Read moreJames Grant: We Are Now All Labrats Of Bernanke And ‘We Are All Living In A Land Of Speculation And Manipulation’ (Video)

Paul Volcker Confronted On Bilderberg (Video)


YouTube Added: 08.08.2012

Description:

Paul Volcker, former Chairman of The Federal Reserve under United States Presidents Jimmy Carter and Ronald Reagan, gets confronted by Luke Rudkowski of WeAreChange about his attendance of past Bilderberg meetings.

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – THE SEQUEL

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – The Sequel (ZeroHedge, July 19, 2012):

Two years ago, in January 2010, Zero Hedge wrote “This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied” which became one of our most read stories of the year. The reason? Perhaps something to do with an implicit attempt at capital controls by the government on one of the primary forms of cash aggregation available: $2.7 trillion in US money market funds. The proximal catalyst back then were new proposed regulations seeking to pull one of these three core pillars (these being no volatility, instantaneous liquidity, and redeemability) from the foundation of the entire money market industry, by changing the primary assumptions of the key Money Market Rule 2a-7. A key proposal would give money market fund managers the option to “suspend redemptions to allow for the orderly liquidation of fund assets.” In other words: an attempt to prevent money market runs (the same thing that crushed Lehman when the Reserve Fund broke the buck). This idea, which previously had been implicitly backed by the all important Group of 30 which is basically the shadow central planners of the world (don’t believe us? check out the roster of current members), did not get too far, and was quickly forgotten. Until today, when the New York Fed decided to bring it back from the dead by publishing “The Minimum Balance At Risk: A Proposal to Mitigate the Systemic Risks Posed by Money Market FUnds“. Now it is well known that any attempt to prevent a bank runs achieves nothing but merely accelerating just that (as Europe recently learned). But this coming from central planners – who never can accurately predict a rational response – is not surprising. What is surprising is that this proposal is reincarnated now. The question becomes: why now? What does the Fed know about market liquidity conditions that it does not want to share, and more importantly, is the Fed seeing a rapid deterioration in liquidity conditions in the future, that may and/or will prompt retail investors to pull their money in another Lehman-like bank run repeat?

Here is how the Fed frames the problem in the abstract:

Read moreThis Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – THE SEQUEL

Former Fed Chairman Paul Volcker laughs at the great increase in wealth disparity over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it

Former Fed Chairman Paul Volcker laughs at the great increase in wealth disparity over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it (FauxCapitalist,Nov. 1, 2011):

In an October 24, 2011 interview with Charlie Rose, former Fed Chairman and fellow Bilderberger, Paul Volcker, laughed at the great increase in wealth disparity in the United States over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it (starting at 18:27).

But there is a feeling — which I’ve been a little surprised has not been expressed more forcibly before — the distribution of income, which has changed very radically in the last 10 or 15 years. And you have a situation in the United States where there’s been almost no growth in real income for the average family for 10 or 15 years, but way at the upper end of the income distribution, there’s been an enormous increase, of a kind that didn’t take place in my lifetime or even in your lifetime. (laughs)

Read moreFormer Fed Chairman Paul Volcker laughs at the great increase in wealth disparity over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it

Gold Game Changer: JP Morgan Accepts Bullion as Money

Gold and silver have always been money, the real money!

Ready for gold $10,000? It’s coming.

Oh, can you trust JP Morgan on anything?

NO!!!!!!!!!!, especially not with your gold and silver.


J.P. Morgan Chase & Co. announced on February 7, 2011 that it will accept physical gold as collateral for investors that want to make short-term borrowings of cash or securities.

Presenting gold to satisfy demands for performance bond collateral has been allowed on the London CME in a limited way since October 2009. As of November 22, 2010, the Intercontinental Exchange Inc. (ICE) has accepted gold bullion as collateral on all credit default swaps and energy transactions.

I don’t recall the G-20 declaring gold a new currency. Yet JPMorgan Chase and a couple of financial market exchanges have effectively declared that gold is an alternative currency.

In other words, gold is money.

Abolish Credit Default Swaps on Sovereign Debt

In an earlier post, I wrote that Congress should act immediately to abolish credit default swaps on the United States, because these derivatives will foment distortions in global currencies and gold. Credit defaults swaps on the United States currently settle in euros, but there is talk of creating new contracts calling for settlement in gold. Congress should immediately ban all credit derivatives on the United States, since the opportunities for mischief making outweigh the hedging value.

Most traders in U.S. credit default swaps don’t think the U.S. will default as long as we have money printing presses, so they are speculating on price movements in U.S. Treasury bonds due to potential increases in interest rates. If speculators manage to get contracts to settle in gold, speculators on the winning side of a price move will demand collateral paid in gold.

Read moreGold Game Changer: JP Morgan Accepts Bullion as Money