Tag: finance

 

Janet Yellen will be the new Fed Chairman come January 2014.

 

Yellen is the head of the San Francisco Fed. There is a lot of misinformation about her on the web, but the fact of the matter is that she is a career academic with absolutely zero banking experience or business experience.

 

This puts her in the same boat as Greenspan and Bernanke. Indeed, the only Fed Chairman we’ve had in 50 odd years with any banking experience is Paul Volcker.

 

With that in mind, it’s important to note that Yellen has been one of the biggest proponents of QE as a monetary policy. In 2011, she stated that QE 1 and QE 2 would create a total of the million new jobs by the end of 2012. Suffice to say, the woman does not understand monetary policy or economics as they pertain to the real world.

 

And she will likely inherit a US Dollar crisis.

 

The US Dollar is preparing to stage a significant breakdown. The uptrend that has been in place since 2011 has already been broke (blue line) and we has already broken key support (black line) briefly last month.

 

 

The Fed’s $85 billion per month QE 3 and QE 4 programs are very anti-Dollar. However, on the opposite end of the global currency see-saw is the Euro which comprises 56% of the US Dollar index.

 

A lower Dollar means a higher Euro. A higher Euro hurts European exports (over 50% of Germany’s economy is export driven). So QE could very well force the ECB to act to push down the Euro. This dynamic will fuel much of the monetary issues of the Yellen-Fed era.

 

For a FREE Special Report outlining how to protect your portfolio a market collapse, swing by: http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards,

 

Phoenix Capital Research

 

 

 

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/75V9rAPfxnk/story01.htm Phoenix Capital Research

Every day in the New Normal, it is either a mass shooting or an explosion in some pipeline or crude-carrying train. Moments ago, a pipeline in Texas exploded in a massive fireball and has prompted the evacuation of the nearby town of Milford.

From Breaking911:

Smoke and flames are visible for miles. There is a fear that an additional pipe may explode. Nearby schools have all been evacuated as well. NUmerous rescue teams responding; unknown if there are any injuries at this time.

 

UPDATE 11:30AM EST: According to county officials, a 10-inch pipeline east of U.S. Highway 77 and Farm-to-Market Road 308 was being worked on when it exploded.

 

UPDATE 11:31AM EST: NBC reports that there are no injuries.
– See more at: http://www.breaking911.com/breaking-pipeline-explosion-near-city-of-milf…

 

Live chopper cam from CBS FDW:

CBS Dallas Live Stream

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/fIQqt-nglmI/story01.htm Tyler Durden

Between last night’s dismal reality of enrollees in Obamacare, the collapse to record lows of Obama’s approval rating, and the growing disillusionment among the President’s own party have forced the administration to “fix” Obamacare. As Politico reports, the president’s proposal would allow insurers to offer plans in 2014 that were previously slated to sunset this year, but require the companies to let consumers know how — if at all — their policies don’t comply with the minimum benefits of the Affordable Care Act, according to a source briefed on the proposal. Insurance companies are not amused as risk pools will need to be adjusted. We leave to our policy-changer-in-chief to explain the nuances of this fiasco and why this is not a “fold”, not an admission that the law is FUBAR, and not in any way similar to the Tea-Party’s suggestion that Obamacare be delayed by one year…

 

As CNN reports:

As the story of the Obamacare website fiasco unfolds, senior administration aides tell me that the President is “mad, frustrated and angry.“

 

Mad that his signature legislative achievement is stuck at the gate, frustrated that he’s running out of time to fix it and angry that he’s got a second-term agenda now going nowhere. He’s so furious, in fact, that he stepped out of character to vent to an assembled group of top aides. “If I had known (about the website problems),” the steaming President reportedly said, according to The New York Times, “we could have delayed the website.”

Live Feed:

 

 

Can we get a web cam of Ted Cruz’s office?

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/_gyfnUcMVTQ/story01.htm Tyler Durden

Between last night’s dismal reality of enrollees in Obamacare, the collapse to record lows of Obama’s approval rating, and the growing disillusionment among the President’s own party have forced the administration to “fix” Obamacare. As Politico reports, the president’s proposal would allow insurers to offer plans in 2014 that were previously slated to sunset this year, but require the companies to let consumers know how — if at all — their policies don’t comply with the minimum benefits of the Affordable Care Act, according to a source briefed on the proposal. Insurance companies are not amused as risk pools will need to be adjusted. We leave to our policy-changer-in-chief to explain the nuances of this fiasco and why this is not a “fold”, not an admission that the law is FUBAR, and not in any way similar to the Tea-Party’s suggestion that Obamacare be delayed by one year…

 

As CNN reports:

As the story of the Obamacare website fiasco unfolds, senior administration aides tell me that the President is “mad, frustrated and angry.“

 

Mad that his signature legislative achievement is stuck at the gate, frustrated that he’s running out of time to fix it and angry that he’s got a second-term agenda now going nowhere. He’s so furious, in fact, that he stepped out of character to vent to an assembled group of top aides. “If I had known (about the website problems),” the steaming President reportedly said, according to The New York Times, “we could have delayed the website.”

Live Feed:

 

 

Can we get a web cam of Ted Cruz’s office?

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/_gyfnUcMVTQ/story01.htm Tyler Durden

Here are the only two charts that matter:

First, the Fed now owns a third or 32.47% of all 10 Year equivalents, up 32.22% from the prior week, and rising at a pace of 0.3% per week.

 

Second, the Fed is now monetizing a record 70% of all net US 10 Year equivalent issuance.

 

That is all.

Source: Stone McCarthy and RBS

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/EqvtxoYWPjo/story01.htm Tyler Durden

For the benefit of the revisionist media (if there is any media left) once the final asset bubble has popped in a few years time, and which like now will try – incorrectly – to make Yellen appear Oracular in her prophetic “bubble warnings”, we would just like to “timestamp” what she just said:

• YELLEN SAYS FED DOESN’T SEE BUILDUP OF FINANCIAL RISKS
• YELLEN SEES LIMITED EVIDENCE OF ‘REACH FOR YIELD’
• YELLEN SAYS FED LOOKS OUT FOR ANY POTENTIAL ASSET PRICE BUBBLES
• YELLEN DOESN’T SEE `MISALIGNMENTS’ IN ASSET PRICES

So there you have it: No risks, no bubbles, and on the record. Thank you Mr. Chairwoman. And now, you may continue BTFATH.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/NtSwqL7ZruQ/story01.htm Tyler Durden

For the benefit of the revisionist media (if there is any media left) once the final asset bubble has popped in a few years time, and which like now will try – incorrectly – to make Yellen appear Oracular in her prophetic “bubble warnings”, we would just like to “timestamp” what she just said:

• YELLEN SAYS FED DOESN’T SEE BUILDUP OF FINANCIAL RISKS
• YELLEN SEES LIMITED EVIDENCE OF ‘REACH FOR YIELD’
• YELLEN SAYS FED LOOKS OUT FOR ANY POTENTIAL ASSET PRICE BUBBLES
• YELLEN DOESN’T SEE `MISALIGNMENTS’ IN ASSET PRICES

So there you have it: No risks, no bubbles, and on the record. Thank you Mr. Chairwoman. And now, you may continue BTFATH.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/NtSwqL7ZruQ/story01.htm Tyler Durden

UPDATE: Gold is slipping back as Yellen notes:

• *YELLEN SAYS QE `CANNOT CONTINUE FOREVER’
• *YELLEN SAYS FED TAKES RISKS OF QE `VERY SERIOUSLY’

 

Yesterday was equity markets turn to get all exuberant over Yellen’s promises. Today, it is the reality that she will do whatever it takes and her mention of data-dependence and ongoing use of Fed tools that is sending gold (and silver) higher.

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/wGJw4uHHADs/story01.htm Tyler Durden

UPDATE: Gold is slipping back as Yellen notes:

• *YELLEN SAYS QE `CANNOT CONTINUE FOREVER’
• *YELLEN SAYS FED TAKES RISKS OF QE `VERY SERIOUSLY’

 

Yesterday was equity markets turn to get all exuberant over Yellen’s promises. Today, it is the reality that she will do whatever it takes and her mention of data-dependence and ongoing use of Fed tools that is sending gold (and silver) higher.

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/wGJw4uHHADs/story01.htm Tyler Durden

Today’s AM fix was USD 1,283.25, EUR 955.23 and GBP 801.53 per ounce.
Yesterday’s AM fix was USD 1,276.00, EUR 951.25 and GBP 798.75 per ounce.

Gold rose $4.40 or 0.35% yesterday, closing at $1,273.30/oz. Silver slipped $0.19 or 0.92% closing at $20.56. Platinum fell $5.55 or 0.4% to $1,424.20/oz, while palladium fell $9.50 or 1.3% to $727.97/oz.

Gold inched up again after Federal Reserve Chairman nominee Janet Yellen said the U.S. economy and labor market must improve before QE is reduced. This lifted confidence as silver prices recovered from their lowest levels since August. “The focus for the bullion market may shift to the upcoming testimony by Yellen,” James Steel, an analyst at HSBC, commented. “Chinese gold demand remains brisk. However, gold is likely to remain on the defensive in the near term”, wrote Steel.

The latest long term gold trend research from Nick Laird at ShareLynx indicates that the price of gold may rise in the near future. In the chart below, Nick references those periods from the past when it was prudent  to buy and to sell. He also indicates that this particular period, November 2013, may be a prudent time to to buy. This chart reaffirms GoldCore’s long term outlook for the price of gold.

Long Term Gold Trend (www.sharelynx.com)

“Sometimes it’s not enough to know what things mean, sometimes you have to know what things don’t mean.” Bob Dylan

The Bank of England says the UK recovery has taken hold and Chancellor George Osborne is reported as saying “the report was proof the government’s economic plan was working.” The governor of the Bank of England, Mark Carney, said the bank will not ‘consider’ raising interest rates until the jobless figure falls below 7%.

However, The Bank of England threw a get-out-of-jail card on the table and said that there was a two-in-five chance of the unemployment rate reaching the 7% threshold by the end of 2014. And then added that the corresponding figures for the end of 2015 and 2016 are around three in five and two in three respectively. What exactly does the Bank of England mean or what does this not mean?

The financial crisis of 2007-2008 has sparked the most intense interest in international monetary reform since Richard Nixon closed the gold window at the New York Fed and devalued the U.S. dollar in 1971. Nixon’s action was widely seen at the time as presaging the end of the dollar-based world trade and financial system. On the face of it, this probably wasn’t an unreasonable expectation at the time. Within fewer than ten years, however, it was proven to be far off the mark. The dollar fell alright, but by the middle 1980s had recovered strongly.

In retrospect it is clear why the dollar sceptics were wrong. To begin with, the U.S. economy was still the world’s largest and the U.S. was still the leader of the “free world,” that is to say the world outside the communist bloc. The NATO countries of Western Europe were wholly dependent on the U.S. for security as well as for markets.

The same applied to Japan, South Korea and Taiwan, while the signatories of the secret UK/USA intelligence agreement (the U.S., UK, Canada, Australia and New Zealand) represented the Anglo core of the old British Empire, a group with no interest in seeing the dollar replaced. Communist Russia and China were in no position to register an opinion, much less offer an alternative. By default, the dollar soldiered on, thanks to the geopolitical realities of the time.

But what about today’s realities? Continue this fascinating story in our November edition of Insight – Talking real money: World Monetary Reform.

Click here to download your own copy of Talking real money: World Monetary Reform

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