ZeroHedge: 100% of Mainstream Interest Rate Theory is Wrong

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by Keith Weiner

An interesting article on MarketWatch today caught my attention. The subhead is the money quote, “Back in April every economist in a survey thought yields would rise. Guess what they did next.”

Every? The article refers to 67 economists polled by Bloomberg, all of whom would seem to believe in the quantity theory of money. This means they believe a rising money supply causes rising prices. That means they think the bond market expects inflation. Which means they expect the interest rate to rise, because investors will somehow demand more.

It didn’t happen because every assumption in that chain is false.

Many people also expect interest rates to rise after the Fed’s bond buying program—quantitative easing—ends. Let’s take a look at the yield on the 10-year US Treasury bond from 1981 through today. This graph is courtesy of Yahoo Finance, though I have labeled it as carefully as I could for the three rounds of QE so far.

Interest Rate

By zooming out to capture the entire time period of the bull market in bonds—i.e. Read more »

via zerohedge

Michael Snyder- Deflation then Inflation Through the Roof

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

[video]

What do you look out for as a warning sign of the next calamity? Michael Snyder of TheEconomicCollapseblog.com says, “When there is a financial crisis, all of a sudden, banks don’t want to lend. They don’t want to lend to each other, and they don’t want to lend to anyone else. Credit freezes up, and our financial system is based on debt and the flow of money from the banks lending it to the rest of us. I believe we will have a brief period of deflation before the response by the Federal Reserve and the federal government, where we are going to then have tremendous inflation through the roof.”

How can this be fixed? It can’t be fixed without killing the economy, as Snyder explains, “A lot of people say I hate the banks. Let the banks fail. This is kind of like a patient with a very advanced stage of cancer. That’s what our economy is like. We are so tied into these banks. If you try to kill the advanced cancer, you are probably going to kill the patient as well. If you try to kill the banks, our economy is going to die as well.”

Join Greg Hunter as he goes One-on-One with Michael Snyder, founder of TheEconomicCollapseblog.com.

http://usawatchdog.com/permanent-damage-to-us-economy-michael-snyder/

U.S. Is Now Directly Arming The Islamic State To Push The Agenda Of Removing Assad – Episode 498

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

X22Report, Published on Oct 21, 2014

Europe is now introducing a new austerity plan so each country can receive more debt. McDonald’s sales are down. Existing home sales pushed up by condos and speculators. CEO of Total dies in plane crash, he mentioned that oil does not need to be sold in dollars. Swedish banks start enforcing FATCA rules.21 cities in US say its illegal to feed homeless. Liberia sees the Ebola spreading slower. The U.S. enforces screening for West African countries. Obama getting ready to push his EO for illegal amnesty through right after the elections.Iran doesn’t trust the US coalition fighting the Islamic State. U.S. directly arming Islamic State and sending humanitarian aid to them.

Thanks to BrotherJohnF

10 Things About The U.S. News Media That They Do Not Want You To Know

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

theeconomiccollapseblog.com / By Michael Snyder on October 21st, 2014

Do you trust the news media?  Do you believe that the information that they are giving you is true and accurate?  If you answered yes to either of those questions, that places you in a steadily shrinking minority.  Yes, on average Americans watch approximately 153 hours of television a month, but for their news they are increasingly turning to alternative sources of information such as this website.  Big news channels such as CNN, MSNBC and Fox News are losing hordes of viewers, and they are desperately searching for answers.  Things have gotten so bad at CNN that they have been forced to lay off hundreds of workers.  The mainstream media is slowly dying, but they will never admit it.  They are still convinced that they can find some way to turn this around and regain the trust of the American people.  But it simply is not going to happen.  The following are 10 things about the U.S. news media that they do not want you to know…

#1 The level of trust in the U.S. news media is at an all-time low.

According to a Gallup survey that was conducted last month, only 40 percent of all Americans have a “great deal/fair amount” of confidence in the mass media.  That ties the lowest level that Gallup has ever recorded.

#2 The news media is far more liberal than the American people.

We hear much about the supposed “conservative bias” of Fox News, but the truth is that overall the U.S. public considers the news media to be extremely liberal.  Gallup found that 44 percent of all Americans consider the news media to be “too liberal”, and only 19 percent of all Americans consider the news media to be “too conservative”.

And it is a fact that “journalists” are far more likely to give money to Democrats than to Republicans.  The following comes from an MSNBC report

READ MORE

Thanks to BrotherJohnF

FSN: Wall Street Is One Sick Puppy – Thanks To Even Sicker Central Banks

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by David Stockman
David Stockman’s Contra Corner

Last Wednesday the markets plunged on a vague recognition that the central bank promoted recovery story might not be on the level. But that tremor didn’t last long.

Right on cue the next day, one of the very dimmest Fed heads—James Dullard of St Louis—-mumbled incoherently about a possible QE extension, causing the robo-traders to erupt with buy orders. By the end of the day Friday, with the market off just 5% from its all-time highs, the buy-the-dips crowd was back, proclaiming that the “bottom is in”. This week the market has been energetically retracing what remains of the October correction.

And its no different anywhere else in the central bank besotted financial markets around the world.

Continue Reading at DavidStockmansContraCorner.com…

FSN: Carl Icahn: “The Fed Turned This Market Around Here”

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

from Zero Hedge

By now, 6 years after America’s grand experiment in recreating Soviet-style central planning started, it should be clear to all except that subset of Homo Sapiens also known as “economists”, that the Fed’s QE is not helping the economy. In fact, it is merely boosting wealth inequality, leading to asset price (hyper)inflation, middle class devastation, and its inevitable outcome is yet another asset bubble can which will need to be kicked eventually leading to even greater economic misery, greater inequality, more conflict, and increasingly: outright warfare. In fact the two final outcomes of more QE are becoming increasingly clear: broad hyperinflation a la the Bernanke chopper to offset ever steeper episodes of deflation (as one monetizing nations exports its deflation to all the other nations), which implies a failure in the reserve currency, and rising social conflict, which culminates in a French revolution-type social revolt when the poor finally roll out the guillotines.

Continue Reading at ZeroHedge.com…

FSN: Ten Things About The U.S. News Media That They Do Not Want You To Know

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by Michael Snyder
The Economic Collapse Blog

Do you trust the news media? Do you believe that the information that they are giving you is true and accurate? If you answered yes to either of those questions, that places you in a steadily shrinking minority. Yes, on average Americans watch approximately 153 hours of television a month, but for their news they are increasingly turning to alternative sources of information such as this website. Big news channels such as CNN, MSNBC and Fox News are losing hordes of viewers, and they are desperately searching for answers. Things have gotten so bad at CNN that they have been forced to lay off hundreds of workers. The mainstream media is slowly dying, but they will never admit it. They are still convinced that they can find some way to turn this around and regain the trust of the American people. But it simply is not going to happen. The following are 10 things about the U.S. news media that they do not want you to know…

Continue Reading at TheEconomicCollapseBlog.com…

FSN: Shock Interview: Ebola Czar Says Population Growth Is Top Issue Facing the World

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by Mac Slavo
SHTF Plan

Since his appointment as America’s Ebola Czar it has been revealed that not only does Ron Klain have no medical experience to speak of, but that his position as the head of coordinating efforts to stop Ebola is just a stepping stone to something bigger and better. The administration says that they need someone with management experience to ensure containment operations are executed effectively. That would be all fine and dandy except for a shocking interview that has made its way onto the internet in which Klain is asked about the top issue facing the world.

It turns out that the new Ebola Czar, whose responsibility is to quash the spread of Ebola and save lives, is seemingly an advocate of population and resource control.

Continue Reading at SHTFPlan.com…

FSN: McDonald’s Vows Fresh Thinking After Net Income Declines 30%; Mish Offers Some Advice

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by Mike “Mish” Shedlock
MISH’S Global Economic Trend Analysis

A 30% net income decline for McDonald’s is quite startling to most. I wonder why such a decline took so long.

In response to that pathetic performance, McDonald’s Vows Fresh Thinking.

McDonald’s Corp. outlined plans for what it called fundamental changes to its business as it reported one of its worst quarterly profit declines in years, driven by problems in nearly every major part of its business.

The 30% decline in net income for the period ended Sept. 30 was the latest in a string of disappointing results for the world’s largest restaurant chain. It is struggling with weak sales in Asia, Europe and, most important, its home market in the U.S.

Continue Reading at GlobalEconomicAnalysis.Blogspot.com…

FSN: In the Year 2024

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

by James Rickards
Daily Reckoning

[Editor's Note from Jim Rickards: The following article describes a fictional dystopia in the spirit of Brave New World or 1984. It is not a firm forecast or prediction in the usual analytic sense. Instead, it's intended to provide warning, and encourage readers to be alert to dangerous trends in society, some of which are already in place. Thank you.]

As I awoke this morning, Sunday, Oct. 13, 2024, from restless dreams, I found the insect-sized sensor implanted in my arm was already awake. We call it a “bug.” U.S. citizens have been required to have them since 2022 to access government health care.

The bug knew from its biometric monitoring of my brain wave frequencies and rapid eye movement that I would awake momentarily. It was already at work launching systems, including the coffee maker. I could smell the coffee brewing in the kitchen. The information screens on the inside of my panopticon goggles were already flashing before my eyes.

Continue Reading at DailyReckoning.com…