No Way Out for the Federal Reserve

No Way out for the Federal Reserve

No Way out for the Fed­er­al Reserve

There is no way-out of here for the Fed­er­al Reserve now.

After so much talk of taper (“Taper-Talk”) the Fed final­ly did­n’t fol­low-through. Why not? Because they can­not. That should be clear to any­one. There is not sur­prise here.

This is just talk. Schmoozing…Jive-talk…Rhetoric..Lies?

This is the clear­est sign yet that Bernanke’s poli­cies have failed. The roll­back deci­sion. He knows what’s com­ing and does not want to be around when it hits — and thus he is resign­ing (read — “get the hell out of Dodge!”) at end of year.

It is very, very, very sim­ple to under­stand:

  • Inter­est rates MUST stay low
  • If not the amount of bor­ing of US Gov­ern­ment will bank­rupt USA (it is already tech­ni­cal­ly bank­rupt)
  • So print mon­ey, buy bonds, keep rates low

There is a HUGE prob­lem with this approach — They will either want to stop or be made to stop some­time:

  • They will be made to stop by oth­er coun­tries aban­don­ing “incred­i­ble” US dol­lar (quite sim­ply no longer sound mon­ey)
  • They will want to stop to try to restore cred­i­bil­i­ty to the USD cur­ren­cy (not pos­si­ble when print­ing 85 Bil­lion USD per month — 1 Tril­lion USD per year)

When they stop (or the print­ing press is tak­en off them) the inter­est rates will rise.

The house of cards will fall.

© Copy­right MMXIII RagingGoldenBull.com

Jim Sinclair Meets The RagingGoldenBull in London

I just got­ta share this with you — Jim Sin­clair and the Rag­ing­Gold­en­Bull him­self. What a great hon­or!

Mr Jim Sinclair (Mr Gold) and Mr Farley Balasuriya (Chief GoldenBull) meeting in London June 2013

Mr Jim Sin­clair (Mr Gold) and Mr Far­ley Bal­a­suriya (Chief Gold­en­Bull) meet­ing in Lon­don June 2013

Was in Lon­don over the week­end and had the oppor­tu­ni­ty to talk to Mr. gold him­self — Mr Jim Sin­clair.

This was part of a closed door Lon­don Q&A Ses­sion on the very sen­si­tive top­ics of mon­ey and gold and where we are all head­ing.

The Two Core Mes­sages which rings through loud and clear are:

  • The End-Game is here now
  • Get out of the Sys­tem NOW!

I hope to elab­o­rate on his mes­sage and the oth­er things that were dis­cussed over the com­ing weeks on this blog, and in my emails (sub make sure your are reg­is­tered to our newslet­ter).

 

Ques­tion: Have you start­ed and what are you doing to pre­pare for the end-game that is cur­rent­ly upon us?

 

Check out the orig­i­nal here on Mr Sin­clairs JSMineset.com (about two thirds down page).

© Copy­right MMXIII RagingGoldenBull.com

Video — The Creature from Jekyll Island (G. Edward Griffin)

This is a must watch video. If you real­ly want to know how we got here, in the finan­cial mess that we are in today, then you need to watch this video and under­stand exact­ly how we got here.

The Fed­er­al Reserve Sys­tem is the great­est scam of all his­to­ry — Because it is NOT:

  • Fed­er­al
  • a Reserve (there are no Finan­cial Reserves)
  • a Sys­tem (it is New York based — with the illu­sion of Nation­al pres­ence)

Mr Grif­fin sites sev­en rea­sons why the Fed­er­al Reserve Sys­tem shoul be abol­ished:

  • It is inca­pable of acheiv­ing it’s stat­ed objec­tives
  • It is a Car­tel — Oper­at­ing against the pub­lic inter­est
  • It is the Supreme instru­ment of Usery
  • It gen­er­ates our most unfair tax
  • It encour­ages war
  • It desta­bilis­es the econ­o­my
  • It is an instru­ment of Total­i­te­ri­an­ism

It’s long weigh­ing in at 105 min­utes — but Mr Grif­fin is a mas­ter pub­lic speak­er, a dili­gent researcher, and above all it is high­ly enter­tain­ing piece that every­one should hear.

And know this — You can watch/listen to this video much quick­er than it took Mr Grif­fin the years of painstak­ing research, or ever to read his weighty tome as the same (which is a MUST read, btw ;-)).

Split it into two parts if you must, or more, but make sure you under­stand all that is in this great, great lec­ture.

A clos­ing thougt from Mr Grif­fin:

Fed­er­al Reserve Sys­tem does not need to be audit­ed…  It needs to be abol­ished!

 

I hear you Mr Grif­fin!

Keep stackin’ — FPOW Far­leyB

© Copy­right MMXIII RagingGoldenBull.com

Howard Marks — Investing in Uncertain Times

Howard Marks (no, not the Gan­ga smug­gler) of Oak­tree Cap­i­tal has writ­ten some inter­est­ing (and haunt­ing­ly famil­iar) thoughts about invest­ing in uncer­tain times. The note are from the uni­ver­si­ty of oxford pri­vate equi­ty insti­tute pri­vate equi­ty forum 2013 on March 5.

There are some inter­est­ing ideas here about the macro set­ting of your strat­e­gy mov­ing for­ward from here. I think it would prove a use­ful exer­cise to review the points and check your own per­son­al answers. For exam­ple — Set­ting your strat­e­gy:

Do you expect pros­per­i­ty?

  • Yes -> lever­age, equi­ties, growth
  • No -> debt, val­ue, less lever­age

Which are you more con­cerned about los­ing?

  • Cap­i­tal
  • Oppor­tu­ni­ties

About you and your strat­e­gy:

  • Aggres­sive and risk bear­ing?
  • Cau­tion, con­ser­v­a­tive, risk con­trol

See the full pre­sen­ta­tion here (PDF for­mat): Howard Marks — Invest­ing in Uncer­tain Times

© Copy­right MMXIII RagingGoldenBull.com