Evictions in Ireland by Big Banks Revive Famine Memories

As thousands of people now face evictions via their distressed loans being sold to vulture funds, word on the ground is that things are about to hot up.  New York based ‘Irish Central’ have an article drawing parallels between famine and bankster evictions. They ran this highly disturbing video. This is life under bankster occupation in all it’s grimness.

Irish Central Article here.

Article by Carol Hunt of the irish independent who was always a government lover until now -‘Noonan feeds the vulnerable to the vultures. Rather than Minister Noonan giving the unfortunate mortgage defaulter a break, he’s been fraternising with their enemy.’


[KR920] Keiser Report: Right Price for Surrender

We discuss the declaration of fracking war in North Yorkshire and yet without a prime minister vowing the defend the island, no matter the cost. In the second half Max interviews financial analyst, Rick Ackerman, about bonds, gold and pensions.


Get a #StartNode from @StartJOIN, operate, get verified and get some START – we are expecting to hear from you!!


Here’s Why All Pension Funds Are Doomed, Doomed, Doomed

It’s no secret that virtually every pension fund is dead man walking, doomed by central banks’ imposition of low yields on safe investments, i.e. Zero Interest Rate Policy (ZIRP).

Given that both The Economist and The Wall Street Journal have covered the impossibility of pension funds achieving their expected returns, this reality cannot be a surprise to anyone in a leadership role.

Many unhappy returns: Pension funds and endowments are too optimistic

Public Pension Funds Roll Back Return Targets: Few managers count on returns of 8%-plus a year anymore; governments scramble to make up funding

Here’s problem #1 in a nutshell: the average public pension fund still expects to earn an average annual return of 7.69%, year after year, decade after decade.

This is roughly triple the nominal (not adjusted for inflation) yield on a 30-year Treasury bond (about 2.65%). The only way any fund manager can earn 7.7% or more in a low-yield environment is to make extremely high risk bets that consistently pay off.

This is like playing one hand after another in a casino and never losing. Sorry, but high risk gambling doesn’t work that way: the higher the risk, the bigger the gains; but equally important, the bigger the losses when the hot hand turns cold.

Here’s problem #2 in a nutshell: in the good old days before the economy (and pension funds) became dependent on debt-fueled asset bubbles for their survival, pension fund managers expected an average annual return of 3.8%–less than half the current expected returns.

In the good old days, the needed returns could be generated by investing in safe income-producing assets–high-quality corporate bonds, Treasury bonds, etc. The risk of losing any of the fund’s capital was extremely low.

Now that the expected returns have more than doubled while the yield on safe investments has plummeted, fund managers must take risks (i.e. chase yield) that can easily wipe out major chunks of the fund’s capital if the bubble du jour bursts.

Here’s problem #3 in a nutshell: everyone who rode the great bubble of 1994 – 2000 (including pension funds) soon reckoned 10%+ annual returns on equities wasThe New Normal, so expecting 7.5% – 8% annual returns seemed downright prudent.

When that bubble burst, decimating everyone still holding equities, the Federal Reserve promptly inflated two new bubbles: one in stocks and another in housing. Once again, everyone who rode these two bubbles up (including pension funds) minted hefty profits year after year.

This seemed to confirm that The New Normal included the occasional spot of bother (a.k.a. a severe market crash), but the Federal Reserve would quickly ride to the rescue and inflate a new bubble.

When the dual bubbles of stocks and housing both burst in 2008, once again the Fed rushed to inflate another set of bubbles, this time in stocks, bonds and rental housing. Lowering interest rates could no longer generate a new bubble. This time around, the Fed had to lower interest rates to zero indefinitely, and embark on the most massive monetary stimulus in history–quantitative easing (QE) 1, 2 and 3–to inflate a third bubble in stocks.

This unprecedented expansion of free money for financiers and dropping interest rates to zero generated a bubble in bonds and an echo-bubble in real estate–specifically, commercial real estate and rental housing.

These three bubbles once again generated handsome yields for pension funds.Once again fund managers’ faith in the Federal Reserve maintaining a New Normal of occasional crashes quickly followed by even bigger bubbles was rewarded.

But the game is changing beneath the surface of Fed omnipotence. The returns on zero interest rates (or even negative rates) have diminished to zero, and the Fed’s vaunted monetary stimulus programs have been recognized as enriching the rich at the expense of everyone else.

Even with the unprecedented tailwinds of one massive bubble after another, pension funds are in trouble. The high-risk returns of Fed-induced bubbles followed by the inevitable crashes cannot replace the safe, high yields of the pre-bubble-dependent economy.

If funds are in trouble with stocks in a new unprecedented bubble high, how will they do when stocks fall back to Earth, as they inevitably do in boom-bust cycles?

The usual justification for nose-bleed valuations is sky-high corporate profits.But profits have rolled over, and irreversible headwinds are increasing: a stronger U.S. dollar, an aging populace desperate to save more for retirement, an entire generation burdened with student debt and often-worthless college diplomas, a global economy on the brink of recession, diminishing returns on firing workers, diminishing returns on financialization legerdemain, etc.

Meanwhile, commercial real estate loans have soared above the previous bubble highs.

This seems to prove that no bubble bursts for long with the Federal Reserve at the helm, but there are limits on what the Fed can do when this bubble bursts, as it inevitably will, as surely as night follows day.

The Fed can’t lower interest rates below zero without signaling that the economy is well and truly broken, and it can’t force people who are wary of debt to borrow more, even if it effectively pays borrowers to take on more debt.

All the Fed can do is extend new debt to unqualified borrowers who will default at the first sneeze. This will trigger the collapse of whatever new credit-fueled bubble the Fed might generate.

The political winds are also changing. The public’s passive acceptance of central banks’ let’s make the rich richer and everyone else poorer policies may be ending, and demands to put the heads of central bankers on spikes in the town square (figuratively speaking) may increase exponentially.

It’s looking increasingly likely that third time’s the charm: this set of bubbles is the last one central banks can blow. And when markets free-fall and don’t reflate into new bubbles, pension funds will expire, as they were fated to do the day central banks chose zero interest rates forever as their cure for a broken economic model.

A Radically Beneficial World: Automation, Technology and Creating Jobs for All is now available as an Audible audio book.

My new book is #2 on Kindle short reads -> politics and social science: Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle ebook, $8.95 print edition)For more, please visit the book’s website.

Tagged with: , , , ,

A Tale of Two Stuningly Beautiful Women

I recently spent time with two people that superficially seem quite similar, but after some close observation are really quite different.  Both are middle-aged white women.
Both, I speculate, are considered VERY attractive by most people they encounter…

Tagged with:

Gold Price Likely Rise Above $1,900/oz -“Get In Now” Says Boockvar

The gold price is likely to rise above $1,900/oz in the next phase of the bull market and investors should “get in now,” Chief Market Analyst of the Lindsey Group, Peter Boockvar told CNBC’s “Futures Now” yesterday.

gold prices

“This is just the beginning of a new bull market in the metals,” Boockvar believes.

Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as he reasoned that bull markets historically exceed the previous bull market peak at some point.

As Boockvar sees it, it’s just a matter of when.

“In order to be bearish on gold, you have to believe that the Fed is going to embark on 100 to 200 basis points of hikes over the next couple of years, which I think is completely unrealistic,” added Boockvar. “This is an ideal opportunity for those who have not gotten in.”

Citing the relative strength index (RSI), Boockvar said that gold is the most oversold it has been since mid-December. He also added that global interest rates have given trillions of dollars’ worth of sovereign bonds a negative yield. Coupled with rising Fed rates, this development would theoretically provide gold investors with positive carry on gold. 

For additional context, Boockvar highlighted the mid-2000s, when the Fed raised the Federal funds rate from 1 percent to 5 percent. During that time, gold went from $400 to $700. The analyst also cited the start of 2016, when Bank of Japan Governor Haruhiko Kuroda adopted negative interest rates. However, the move failed to help the nation achieve stability in its currency.

Watch Boockvar’s interview on CNBC here

Recent Market Updates
– Gold and Silver “Bottom Is In” – David Morgan tells Max Keiser
– World’s Largest Asset Manager Suggests “Perfect Time” For Gold
– Gold As “Extremely Low-Risk Asset” – Rogoff Advises Creditor Nations
– Silver – “Best Precious Metals Trade”
– Bank Bail-Ins Pose Risks To Depositors, Investors & Economies
– Take Delivery of Gold and Silver Coins, Store Gold Bars – Hobbs
– George Soros Buying Gold ETF And Gold Shares In Q1

www.GoldCore.com


Trump’s Decision to Debate Sanders in California is His Most Genius Move Yet

Screen Shot 2016-05-26 at 2.01.08 PM

If the Trump/Sanders debate proceeds as planned in California, you’re about to witness one of the most important moments of a 2016 general election that hasn’t even begun yet. To say such a debate would be an unmitigated disaster for Hillary Clinton would be the understatement of the century. Let’s explore why.

First of all, Hillary Clinton outright rejected a debate request from Bernie Sanders ahead of the June 7th California primary. Given Sanders’ recent momentum, as well as her need to persuade a significant number of his supporters to back her in November; such a denial was not only arrogant, it was highly insulting to voters in America’s largest state. From team Clinton’s perspective there was little upside to agreeing to a debate, versus easily manageable downside from a few days of negative media coverage. Or so they thought…

Read the rest here.

Tagged with: , , , , ,

[KR919] Keiser Report: Pensions Going Bankrupt

In this episode of the Keiser Report, we discuss retirement: the ugliest word in the English language, which, nevertheless, many Americans will no longer have to encounter. In the second half, Max interviews Constantin Gurdgiev, Professor of Finance at Middlebury Institute of International Studies, about the debt situation in Europe and the Irish water fiasco.


Cash Holdings of Apple and Other Tech High Fliers Are A Massive Risk in This Debt Jubilee Era

Cash-Holdings-of-Apple-and-Other-Tech-High-Fliers-Are-A-Massive-Risk-in-This-Debt-Jubilee-Era-The-Dollar-Vigilante-676x374

Throw every “norm” out the window.  This Keynesian, central banking world has everything so distorted that nothing makes sense anymore. Read more ›


UK Banks’ Obsoleteness Driving Bitcoin Trading Volume


The Anger of the Unprivileged Is Rising Globally

The righteous disgust with the status quo that spawned the broad-based campaigns of Bernie Sanders and Donald Trump is not unique to the U.S.Globally, those disenfranchised by the status quo–the unprivileged, or in Peggy Noonan’s phrase, the unprotected– are starting to express their discontent in the streets, in social media and in elections.

Why are people around the world angry? It’s obvious to everyone in the unprivileged classes and a mystery to the “we’re doing just fine here, what’s your problem?” privileged classes: The system is rigged to benefit the protected few and marginalize the unprotected many.

The problems are not just political; they are structural. As I outline in my new book, Why Our Status Quo Failed and Is Beyond Reform, there are two structural engines of disorder at the heart of the system:

1. Automation, software and the forces of globalization are disrupting jobs and wages everywhere.

2. Centralized hierarchies and the forces of financialization have extended the power of privilege globally so the few are benefiting at the expense of the many, as revealed in this chart of global wealth:

The growing concentration of wealth and power in the privileged elites is evidenced by the fact that 8% of the world’s populace owns 85% of its wealth.What is driving this increasing concentration of wealth and power? In a word:Privilege.

To understand rising wealth/income disparity and the increasing concentration of wealth, we must first understand the dual nature of privilege. Just as power comes in two flavors–hard power (military power) and soft power (exporting cultural wares and values)–so does privilege.

Hard-wired privileges are those that grant the holder of an office or position in the hierarchy specific rights to accumulate income, wealth and political powerthat are not available to the unprivileged. Officials in corrupt countries gain the right to collect fees from citizens as a direct result of their official position. Financiers in the U.S. have access to unlimited credit at low rates (free money for financiers) as a direct result of their position atop the financial pyramid.

Field-effect (“soft”) privileges are defined by class and access rather than by the hard-wired authority of office or position in a formal hierarchy. Field-effect privileges include: enhanced access to Ivy League higher education granted to children of alumni and major donors; membership in exclusive clubs; access to “old boy” networks of alumni and partners, and so on.

Field-effect (“soft”) privileges are one primary reason why the income of the top 20% has risen from 40% of total U.S. income to 51% in the past two decades. In a rapidly financializing, globalized economy, those with access to higher education, class connections and abundant credit have built-in advantages over those without all three advantages, which are self-reinforcing.

(I use the term field-effect to suggest that these privileges act like electrical fields, affecting all within their range, often without the privileged even being aware of their privileges. Hence the upper-middle penchant for overlooking all their class advantages and attributing their success to hard work. Well, yes, but that’s not the entire story: we must also measure the often-subtle benefits of field-effect privileges.)

Over time, these privileges accrue substantial income and wealth: the 10% difference between 40% and 50% of total household income is $1.4 trillion per year. In the past decade, that means the top 20% has gained about $12 trillion more in income than it would have if its share of total household income had remained at 40%.

(Income data source: Income and Poverty in the United States: 2014)

Having an Ivy League (or equivalent top-tier public university) diploma is a plus, but it doesn’t provide a wealth of self-reinforcing privileges unless it is combined with upper-class connections and networks and easy access to credit (to scoop up productive assets on the cheap). Together, these field-effect privileges create synergies that concentrate wealth and power.

Interestingly, privilege serves the same purpose–benefiting the few at the expense of the many–regardless of the system’s ideological labels. Socialist, Communist and free-market elites loot their populaces and national wealth with equal gusto. Those who came to do good and stayed to do well first accumulate privileges, which they then leverage into wealth and power.

The grievances of Chinese workers robbed of their wages, Greek small-business owners burdened by ever-rising taxes, downsized corporate warriors in the U.S., etc. may appear to be different, but beneath the surface these grievances all arise from one source: unearned privileges that benefit the few at the expense of the many.

The only way to eliminate social and economic injustice is to eliminate privilege, which is the heart of my book A Radically Beneficial World.

A Radically Beneficial World: Automation, Technology and Creating Jobs for All is now available as an Audible audio book.

My new book is #2 on Kindle short reads -> politics and social science: Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle ebook, $8.95 print edition)For more, please visit the book’s website.

Tagged with: , ,

Emergency G-20 Finance Meeting: Has The Financial Collapse Begun?

The G-20 central planners have scheduled an “emergency” financial meeting.
Is the global economy is on the verge total collapse?

Click Here For Full Coverage On the G-20 Emergency Finance Meeting: 

Tagged with: , , ,