World finally waking up to reality that lowering interest rates doesn’t fight deflation, it causes deflation

Cut to the chase…

By keeping rates low, you are propping up zombie banks who are crowding out competitive companies and industries from expanding and hiring more workers at higher wages – that would in turn start an inflationary cycle. This means that; allowing rates to trade freely, where they would increase to 5% (on the Fed funds rate), killing off the zombie banks – opens the possibility of a virtuous, inflationary cycle to begin. Policy makers wrongly believe that we have a liquidity problem instead of a solvency problem. They believe that by increasing liquidity with lower rates, therefore increasing the amount of money around, that ‘aggregate demand’ will increase and this will spur inflation. But as we see now for 6 yrs., the money printing simply gets hoarded by zombie banks that are insolvent and need the cash to prop up their trillions in toxic, unpayable debts. Therefore, only by hiking rates, killing the zombies, and clearing the economy of dead wood – can we reasonably expect ‘animal spirits’ to kick in, stoke inflation and kill the zombies.


Rogue banking terrorists start dropping dead in Asia for first time: GIABO

Until now, the terrible trail of dead bankers has been only among US and European financial executives. However, as Caixin reports, the increasing pressures on the Chinese banking system appear to have take their first toll.


Bitcoin Accepted: Has anyone else noticed how much we are living in a world of Atlas Shrugged?

I Have Bitcoins Bitcoin Accepted Has anyone else noticed how much we are living in a world of Atlas Shrugged

“Civilization is the progress toward a society of privacy. The savage’s whole existence is public, ruled by the laws of his tribe. Civilization is the process of setting man free from men.” Ayn Rand

Galt’s Gulch, is a community of like-minded individuals who come together regularly to share interesting content and ideas with each other and debate about politics, economics, philosophy and more…….Read More >>>


Clues for 9/11 Terror Trading

Marc Chesney, professor at the Department of Banking and Finance at the University of Zurich, and his colleagues Remo Crameri and Loriano Mancini have published a new version of their scientific long-term project in econometrics, “Detecting Informed Trading Activities in the Options Markets.“ One more time the three scientists present evidence for insider trading related to the 9/11 terror attacks.

For more see here.

 

Tagged with: , , ,

Fed’s Wealth Effect: Richest 200 Moguls Made $13.9 Billion Today

Bernanke doesn’t regret much about the Fed’s actions, he said. Not even handing trillions to the largest banks and corporations to teach them that the public would be there for them when their horrid bets got them into trouble. But there’s one thing he does regret, he said: not explaining the Fed’s actions to the people who’ve gotten shafted by them. They “really don’t understand why we did what we did.” But there are a few people who do understand.

Read….. Fed’s Wealth Effect: Richest 200 Moguls Made $13.9 Billion Today


Cost Of “Breakfast In America” Soars To Highest In Over 2 Years


Viva La Bitcoin Revolution!


Americans who tell the world “you can’t violate a country’s sovereignty. (McCain, Kerry, anybody….?)


Man Eats Twelve Gold Bars To Avoid Taxes

It is interesting to note that while thousands of Indians have engaged in gold smuggling in recent months, smuggling in the western world consists primarily of drugs. This says something about the values system of India and Eastern societies versus that of the western world. Read more ›

Tagged with: , , , , ,

Same guys who debt-raped #ManUtd are doing the same for UK’s NHS (National Health Service)


Access The Max Keiser Podcast
Weekly Downloads, live Q & A Session and exclusive video posts from Max and Stacy

Subscribe Learn More
Buy Gold Online
Watch the latest Keiser Reports:

Watch our Google Hangouts: