THE BERNANKE HIGH

THE BERNANKE HIGH

Today saw the Dow reach a new all time high of 14254, exceeding 2007 levels. At the same time  the FTSE saw 5 year highs. The mainstream media slavishly and mindlessly report this   euphoric situation, linking it to the economic recovery, particularly in the US, and of course the financial genius of Ben Bernanke and the FED.. 

They fail to mention a few troubling little details about the US economy now, compared with then in 2007:

• GDP Growth: Then +2.5% without QE; Now +1.6% with 1 Trillion QE
• Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
• Labor Force Participation Rate:Then 65.8%; Now 63.6%
• Americans On Food Stamps: Then 26.9 million; Now 47.69 million
• Size of Fed's Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
• US Debt as a Percentage of GDP:Then ~58%; Now over 100.0%
• US Deficit (LTM): Then $97 billion; Now $975.6 billion
• Total US Debt Oustanding: Then $9.01 trillion; Now $16.43 trillion

Adjusted for inflation over the last 5 years the new "high" is still well below the 2007 level in purchasing power terms.

These figures do not take into account the stagnation in the real estate market, where shadow inventory will weigh on the market for years to come, despite the gross misrepresentations in this regard from the NAR (National Assoc of Realtors).

Also ignored is the student loan market, which  now exceeds USD 1 Trillion, and default rates are soaring, as hapless students with worthless degrees are unable to find work. The good news for politicians is up to now students were excluded from the unemployment statistics.

If one considers that USD 1 Trillion of new cash pumped into the economy generated only a 1,6% growth, or USD 250 Billion of GDP increase, then QE seems  an ineffective tool to create a meaningful recovery.

In reality the rise in the Dow has nothing to do with economic fundamentals. It is purely down to the QE and ZIRP driven "Bernanke High". Excess liquidity from QE finds its way into the stock and bond markets, driving prices up and yields down. Zero interest rates drive prudent investors like lemmings into taking unwanted risks to get some/any return on capital.

ITALY DEBATE - ELECTIONS, EU AND ECB CONSTERNATION, BERLUSCONI THE COME BACK KID?

ITALY DEBATE - ELECTIONS, EU AND ECB CONSTERNATION, BERLUSCONI THE COME BACK KID?

Please find below a link to a recent Financial TV interview between myself, leading economist Dr. Frank Hollenbeck, and Doireann McDermott of Dukascopy TV, discussing:

The Italian election results and the consequences within Italy; the wider impact that the disavowal of Mario Monti, the technocratic puppet of Brussels and the ECB, will have on the financial markets; the future stability of the Euro Zone in general.

To view  the broadcast please follow the link:

http://www.youtube.com/watch?v=lYEjFIgB-kI

Dukascopy Bank SA offers direct access to the Swiss Foreign Exchange Marketplace. This marketplace provides the largest pool of ECN spot Forex liquidity available for banks, hedge funds, other institutions and investors.

The Swiss Forex Marketplace (SWFX) is the technological solution for Forex trading utilizing a centralized-decentralized marketplace model. Its successful launch is the result of home-made IT solutions and close cooperation with selected banks and other financial institutions.

I am very grateful to Frank Hollenbeck that he took part in this debate, and pleased that thanks to Dukascopy TV, my message is reaching an ever wider audience.

CINDERELLA & THE 3 UGLY SISTERS

CINDERELLA & THE 3 UGLY SISTERS

The fairy story is that of a beautiful young woman, living with 3 ugly sisters and a cruel step mother, in unfortunate circumstances whose life suddenly changed to remarkable fortune. 

The word "Cinderella" has, by analogy, come to mean one whose attributes were unrecognised, or one who unexpectedly achieves much deserved recognition or success after a period of obscurity and neglect. 

In watching the hammering that Gold has been receiving over the last weeks this story came immediately to mind.

Consider for a moment how the wicked stepmother Bernanke and his surrogates have tried to help the 3 ugly sisters:

Real Estate: 

Despite doing  everything possible to reflate real estate, property prices still languish and apart from homes for the super rich there is zero recovery.

Equities:

This has been reflated to new and increasingly unsustainable highs, with many observers seeing stagnant economies, lower employment, declining consumer disposable incomes,  and rising p/e ratios preceding a sharp correction in the very near future.

Bonds:

The ZIRP policy and endless QE has driven bond prices to all time highs, and when interest rates finally rise there will be an implosion in the bond market and massive capital losses.

GOLD:

In order to disguise the looming crisis in the other asset classes, Gold, the Cinderella of the story, has been used, abused, manipulated and driven down by the immensely powerful forces of the Government, Central Banks and Bullion Banks, in a totally fraudulent and overtly unregulated market place.

ONLY ONE QUESTION REMAINS:

Would you prefer to invest in an asset whose price, despite all efforts,  cannot be driven below USD 1500 per ounce, or in a group of assets whose current price levels are only sustained by money printing, levitation and media propaganda?

CORBETT REPORT - G 7 CURRENCY WAR LIES, ARGENTINA, JAPAN, MALI & SWISS GOLD

CORBETT REPORT - G 7 CURRENCY WAR LIES, ARGENTINA, JAPAN, MALI & SWISS GOLD

Please find below a link to a recent VIDEO interview, between myself and James Corbett, founder and owner of the Corbett Report – www.CorbettReport.com.

This wide ranging interview discusses the G 7 ignoring the very existence of a currency war  in advance of their next meeting. We discuss the deteriorating situation in Argentina and Venezuela and how history is sadly repeating itself. Japan is facing terminal decline, with an over indebted government, an ageing population, and soaring costs of raw materials imports, in an export led economy. Despite the demonstrable failure in Japan of currency debasement in the past 20 years, Mr Abe wants more, faster. In Mali, the Western interest, ostensibly to fight terror, cannot be separated from the country's and its neighbour Niger's uranium, gold and other base minerals reserves. French company AREVA is the biggest user of uranium in the world and France totally dependent on nuclear for electricity. Over a year ago Libya's gold reserves worth some USD 6 Billion disappeared, where are they and why is there no media coverage of this record heist. Finally we discuss the Swiss bid to have a referendum on recovering their Gold reserves and the related political challenges to the Swiss people in exercising control over their central bank.

http://www.corbettreport.com/g7-lies-south-american-economy-swiss-gold/

The Corbett Report provides a weekly podcast as well as interviews, articles and videos about current events and suppressed history from an independent perspective.

I am very pleased that my message is reaching an ever wider audience.

ALLOCATED GOLD THE SWISS BANKS LATEST PLOY

ALLOCATED GOLD THE SWISS BANKS LATEST PLOY

Please find below an excerpt from a King World News interview with Egon Von Greyerz of Matterhorn Asset Management, Zurich, which puts into perspective the recent announcement that Swiss banks now offered allocated accounts for precious metals:

“A couple of days ago Swiss banks came out with a major PR campaign offering allocated gold and silver accounts. Well,  that’s nothing new, they have always done that. The banks are worried that more and more investors are taking gold outside of the banking system.

So now the banks are telling investors these allocated accounts are safe and would not be included in any bankruptcy. But the bottom line is this gold and silver will be encumbered, and maybe even owned by central banks who will claim it back one day.

We must remember history. Look at Lehman, MF Global, Sentinel. These companies, which all collapsed, had allocated and segregated assets. These assets were used as security for their credit lines. Therefore investors did not get their money back.

The two major banks leading this campaign in Switzerland, UBS and Credit Suisse, represent 600% of Swiss GDP. This exposes the entire Swiss banking industry. So investors should not participate in that program.”

The only truly safe way to own gold is physical bullion, completely outside the banking system, in a secure location, not subject to liens, encumbrances, re-hypothecation and misleading advertising, by the same banks that brought us Libor fraud etc.

CURRENCY WARS, LEAD TO FALLING LIVING STANDARDS

CURRENCY WARS, LEAD TO FALLING LIVING STANDARDS

Please find below a link to a recent Financial TV interview between myself and Doireann McDermott of Dukascopy TV, discussing:

The ongoing currency war, with countries embarking on competitive devaluation of their currencies; the outcome of inflation and falling standards of living for the many.

To listen to the broadcast please click on the link:

http://www.dukascopy.com/tv/#94009

Dukascopy Bank SA offers direct access to the Swiss Foreign Exchange Marketplace. This marketplace provides the largest pool of ECN spot Forex liquidity available for banks, hedge funds, other institutions and investors.

The Swiss Forex Marketplace (SWFX) is the technological solution for Forex trading utilizing a centralized-decentralized marketplace model. Its successful launch is the result of home-made IT solutions and close cooperation with selected banks and other financial institutions.

I am very pleased that thanks to Dukascopy TV, my message is reaching an ever wider audience.

GOLD REPATRIATION, PRICE RIGGING, WINNERS AND LOSERS

GOLD REPATRIATION, PRICE RIGGING, WINNERS AND LOSERS

Please find below a link to a recent Financial TV interview between myself and Doireann McDermott of Dukascopy TV, discussing:

The recent move by Germany to repatriate part of their gold reserves; other countries and central banks which have done this currently or in the past; the paradox that despite exploding demand the paper price of gold is not rising; the harsh reality of market manipulation in the precious metals market, and the winners and losers in this rigged game.

To listen to the broadcast please click on the link:

http://www.dukascopy.com/tv/#93785

Dukascopy Bank SA offers direct access to the Swiss Foreign Exchange Marketplace. This marketplace provides the largest pool of ECN spot Forex liquidity available for banks, hedge funds, other institutions and investors.

The Swiss Forex Marketplace (SWFX) is the technological solution for Forex trading utilizing a centralized-decentralized marketplace model. Its successful launch is the result of home-made IT solutions and close cooperation with selected banks and other financial institutions.

I am very pleased that thanks to Dukascopy TV, my message is reaching an ever wider audience.