[KR871] Keiser Report: Stupid people & stupid policies

We get the popcorn and the potato chips out to discuss the symbolism of negative interest rates, yield curves and intraday oil price swings. In the second half, Max interviews Brenda Kelly, head analyst at London Capital Group, about negative interest rates, US durable goods orders and fraud booms.

New Poll Shows Sanders Tied with Clinton Nationwide – Hillary’s 30 Point Lead Evaporates in 6 Weeks

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The more people see Hillary and Bernie head-to-head, the more people like Bernie. People are starting to get it. They understand the system has morphed into a rigged fraud, and they understand that Sanders really, desperately wants to change it. As much as I disagree with a lot of Sanders’ solutions (his economic statism for example), he clearly despises the status quo, and for many of the right reasons. Sanders is a revolutionary-type candidate, while Clinton is running to be just another placeholder for Wall Street and oligarchical interests.

Read the rest here.

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Sinn Fein’s Book Cooking Skills Don’t Cut It For Goldman Sachs

Kevin Daly, a senior European economist with Goldman Sachs directed a dire warning against the Irish people voting for Sinn Fein in the upcoming general election. Their opinion was again inserted into the debate on a recent Irish news show. The former European Chairman of Goldman Sachs , one Peter Sutherland, has been an Attorney General, an EU Commissioner and a constant advisor to both the Fine Gael and Fianna Fail ruling parties for decades. The EU has said Ireland can miss it’s fiscal compact deficit target by 1.5bn with their blessing.

As it turns out all three mainstream parties have projected incorrect figures in relation to the ‘fiscal space’ ( the amount of money left to play with after ‘balancing’ the books). The only one who got it right was Sinn Fein’s Pearse Doherty. Obviously Sinn Fein’s book cooking skills don’t cut it for Goldman Sachs. Funny I’ve never much considered the Shinners but they must have something going for them if they are shunned by that shower.

Pearse Doherty looking remarkably like Dr Spock-  Election message - Live Long and Prosper.

Pearse Doherty looking remarkably like Mr. Spock- Election message – Live Long and Prosper.

Sinn Féin biggest threat to economic growth, warns top economist

The phantom €2 billion: How everyone except Sinn Féin got the maths wrong

Gerry Adams applauded as he joins ANC Guard of Honor at Mandela funeral

James Turk: COMEX Bled DRY of Gold!

With gold and silver prices SURGING higher this week, we sat down with James Turk for an in-depth discussion on the markets and bullion:

  • James Weighs In On Silver Fix Manipulation: OTC Silver Derivatives Contracts Were Expiring- Somebody Wanted Out of An Option Position!
  • Physical Bars Vanishing: Swiss Refiners Have Bleed COMEX Dry of Gold!
  • Turk Explains Why the COMEX Physical Gold Bar Shortage is Setting Up a MASSIVE Short Squeeze
  • James Provides His Outlook For the Metals in 2016 and Beyond- Are MAJOR New Highs Ahead?
  • Central Banks Nearing the Point They Will Have to Throw in the Towel on Gold Manipulation!
  • Deutsche Bank Has Plunged to 2008 Levels… & the Financial Crisis of 2016 Has Not Even Begun Yet!

Click here for full MUST LISTEN SD Weekly Metals & Markets With The Money Bubble Author James Turk: 

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Former US congressional staffer: Russia unmasked ISIS as Western ‘pawn’ in Mideast

“Russia has been the major player in combating ISIL and has successfully unmasked ISIL as a Western element in Syria and throughout the Middle East. The only nations truly battling Daesh terrorists are Syria, Iran and Russia, and this unified effort scares the interests in the Pentagon and the State Department.”

Read more Former US congressional staffer: Russia unmasked ISIL as Western ‘pawn’ in Mideast

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Jon Matonis: Private blockchains are still a distraction. Bitcoin’s sole purpose is to remove the State from the production of money.


Financial System Will Completely Seize Up Within 48 Hours of Gold Delivery Failure – Bill Holter

The global financial system will completely seize up and close for trading once gold delivery fails.  This will only take 48 HOURS after a failure, and the ability to procure metal, sell stocks and bonds, or do anything else financial will not be an option. Read more ›

End of the Fed: It Can’t Do Any of the Things It’s Supposed to Do


[The following is by TDV’s Senior Analyst, Ed Bugos]

Janet Yellen has been in the news with her often-stated determination to create price inflation. Read more ›

Welcome to the Recovery – 1 Out of 7 Americans (45.5 Million) Remain on Food Stamps

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More than six years into Dear Leader’s glorious economic recovery, 45.5 million Americans, or one in seven, remain on food stamps.

I’d say that’s a problem, but I don’t want to be accused of “peddling economic fiction.”

Read the rest here.

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The Global Economy Could Fall Farther and Faster Than Pundits Expect

The core narrative of central bank/cartel capitalism is centralized agencies have the power to limit downturns and extend credit-based “good times” almost indefinitely. The centralized power bag of tricks includes fiscal policies such as deficit spending to boost “aggregate demand” in downturns and monetary policies such as lowering interest rates to zero and buying assets, a.k.a. quantitative easing.

If we crawl under the barbed wire and escape the ideological Keynesian Concentration Camp, we find thinkers such as Ugo Bardi, John Michael Greer andDimitry Orlov, whose work explores the dynamics of collapse, resilience and sustainability.

All three have added a great deal to my own (emerging) understanding of the many dynamics of collapse.

We can summarize the dynamics of collapse in many ways; here’s one: collapse is latent fragility manifesting. A familiar (and tragic) health analogy offers an example: a middle-aged man doesn’t appear ill, a bit thick around the middle perhaps, but neither he nor his intimates can see the fragility of his clogged arteries and blood-starved heart. Seemingly “out of the blue,” the man has a massive heart attack and passes from this Earth, to the shock of everyone who knew him.

Financial collapse isn’t “out of the blue,” any more than a heart attack is “out of the blue.” Actions and choices have consequences, and as resilience and redundancy are slowly stripped from complex systems, systemic fragility builds beneath the surface. At some difficult-to-predict point, a threshold is reached and the complex system fails.

In the financial realm, fragility builds as the system relies ever more heavily on marginal lenders, borrowers, buyers and investments for its “growth.” The current “recovery” (smirk) is completely dependent on marginal lenders (China’s shadow banking), borrowers (auto buyers taking subprime 7-year loans), buyers (corrupt Chinese officials buying $3 million homes in Vancouver B.C. with their ill-gotten gains) and investments (empty malls, empty factories, stock buy-backs, etc.).

The problem for “growth” based on the fragile margins is that the entire system becomes fragile as a direct result of this dependence on fragile margins. The current global real estate bubble is predicated on one condition: that the supply of corrupt Chinese officials fleeing China with ill-gotten millions to invest overseas is endless.

But no supply of corrupt officials, even in China, is truly endless, and markets based on this thin edge of corrupt capital will collapse once the corrupt capital dries up.

The same can be said of marginal oil production, marginal auto/truck buyers, marginal cafes, marginal malls, etc. When fragile (i.e. highly risky) shadow banking becomes a dominant force in credit, the system itself becomes fragile.

Conventional economists are entirely blind to system fragility. There is no ready Keynesian Cargo Cult econometric formula that measures systemic fragility, so it simply doesn’t exist within conventional economics.

This is why financial panics and collapses always appear (like fatal heart attacks) to be “out of the blue” to conventional economics.

I propose that the Global Recession of 2016 will trace the Seneca Cliff as described by Ugo Bardi. This application may not align with Bardi’s own work, and I want to make it clear this application is my own, not Bardi’s. But I think a strong case can be made that the global financial/economic system is primed for a ride down the Seneca Cliff:

Recall that the global “recovery” 2009 – 2015 was entirely based on the expansion of debt taken on by marginal borrowers. Systemic fragility doesn’t respond to central bank jawboning or Keynesian claptrap; unlike those “policy tools,” fragility is real.

My new book A Radically Beneficial World: Automation, Technology and Creating Jobs for All is being published in China later this year.

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GOLD – It’s Time to Pay Attention

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First, let’s look at the improved fundamentals. Gold bugs will exasperatingly proclaim that fundamentals have been great for the past four years yet the price plunged anyway, so who cares about fundamentals? To this I would respond with two observations. First, large institutional investors and sovereign wealth funds have been anticipating a rate hike cycle for a very long time now. They didn’t know when, but they expected it. The fact that the gold bugs never believed this is irrelevant; what matters is that big money believed it, and it was perceived to be very gold negative. In their minds, this anticipated rate hike cycle would confirm that things were getting back to normal, and if things are normal you don’t need to own gold, right?

The problem is that this assumption is quickly being called into question. Sure the Fed hiked rates once, but it is starting to look more and more like a policy error. Meanwhile, other major central banks around the world are going in the opposite direction, toward negative rates. I am a huge believer in market psychology, and the psychology dominating the minds of most institutional investors over the past few years has been that things were slowly getting back to normal…

Read the rest here.

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