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The Fed Can’t Fix It: “All That’s Left is a Reset, Shutdown of the System”
The Fed Can’t Fix It: “All That’s Left is a Reset, Shutdown of the System”
Did Janet Yellen make the right decision in delaying a Federal Reserve rate hike? Did the United States dodge a bullet? Of course not.
And the system is on course for a dangerous, hard landing.
As far as many experts can tell, there is no right way or good way out of this crisis under Fed control, and the exit isn’t likely to be smooth or pretty.
Not raising rates means yet another round of QE – QE Round 4 – which will lead to a further strain on the real economy as those on top get continued easy free, while interest rates on investments, pensions, insurance and savings sit at zero, or even go negative, destroying wealth. Derivatives continue to rule the day, and everything remains in jeopardy.
That’s why the Fed will eventually raise rates, at least just a little bit. But it will be too little way too late. The Fed has, in fact, lost control, according to many experts.
USA Watchdog reports:
Financial writer Bill Holter contends the recent announcement of the Federal Reserve not to raise rates means the “Fed Has Lost Control.” Holter explains, “Whatever the Fed does is wrong. The reason I say that is because no matter what they do, they can’t fix what they have already done. There is no policy at this point that can repair where we are at this point as far as debt ratios, derivative outstanding and the money supply exploding. Nothing that they do now can fix it. The only thing that remains is a reset.”
…click on the above link to read the rest of the article…
Cash Withdrawal Limits and “Bank Holidays” Coming
Cash Withdrawal Limits and “Bank Holidays” Coming
- Concerns that next crisis may be imminent
- Bail-ins, withdrawal limits and negative interest rates may be imposed
- FT proposes a ban on “barbarous relic” cash
- Central banks would have people “completely under their control” – Bonner
- Gold in safe jurisdictions will again protect wealth
Collapsing commodities prices, erratic market turmoil and the bursting of Chinese bubbles are leading to a crisis in confidence in the economic system across the globe. The long-expected crisis to which the global financial and systemic crisis in 2008 may have been a mere prelude may be upon us.
Governments have no appetite for further bailouts. The EU states have passed legislation which will make the banks or rather unfortunate and unsuspecting depositors liable for the bank’s lending and speculative profligacy.
It is claimed that this is to “protect” the taxpayer. In reality it will likely lead to bail-ins – the confiscation of deposits. It is likely that that in a crisis within the banking system this bail-in mechanism would be imposed on an impromptu “bank holiday” followed by limits on cash withdrawals as were applied in Cyprus and more recently to depositors in Greece.
As has been pointed out by many other analysts, the unelected powers-that-be have used all their conventional weaponry to stave off the consequences of their irresponsible ultra loose monetary policies and massive buildup of debt globally – the largest ever seen in the history of the world.
The typical response to a crisis has been to slash rates from somewhere around 6% – the historic post war norm in the west – to between 0% and 1%. This has stored up an even crisis in the future – the question is not if we have another crisis but when.
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Will Uncle Sam Confiscate Gold Again?
Will Uncle Sam Confiscate Gold Again?
Investors suffered financial losses in recent weeks as stocks globally came under pressure in August and had their worst month in the last three years.
In one of the most volatile trading periods since the global financial crisis, August saw a massive $5.7 trillion erased from the value of stocks worldwide. No major stock market was left unscathed and the risk of financial and economic contagion became evident again.
There are growing concerns internationally that in the event of another Wall Street or global stock market crash and a new systemic crisis – a Eurozone debt crisis or another Lehman Brothers collapse – there could be enforced bank closures or extended bank holidays in the EU and U.S. as seen in Greece recently.
In this scenario, deposit boxes and vaults in U.S. banks and financial institutions could be sealed and gold confiscated again.
There is a legal precedent for this. April 5th, 1933 – at the height of the Great Depression – was the day when U.S. President Franklin Delano Roosevelt instructed all American citizens to hand over all their gold coins and bars to the Federal Government.
Every coin, bar and certificate had to be handed in to Roosevelt’s government or else one would face a very large fine of $10,000 or 10 years in jail. That is whopping fine of $180,000 fine in today’s money.
Gold was money at the time as dollars were backed by gold so in effect Roosevelt was confiscating the safest and most valuable form of money that people owned for the benefit of the state. Under the Gold Confiscation Act of 1933 Roosevelt ordered all gold be handed to the authorities. At the time, gold was valued at $20 per ounce. Once the gold was confiscated from the citizens and in the government coffers they revalued gold and devalued the dollar to $35 per ounce.
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