European Union more than happy to place a convicted criminal at the head of the ECB

1:10 PM ban cash, cashless, christine lagarde, criminal, ecb, eu, imf, Mario draghi, negative interest rates No Comments

With the majority of people in the West having extraordinarily short memories, it should not be surprising that there has been little question of the IMF's Christine Lagarde being nominated to run the European Central Bank.  However if one goes back just two years you would find that Lagarde just happens to be a convicted criminal of financial crimes.

International Monetary Fund chief Christine Lagarde has been convicted over her role in a controversial €400m (£355m) payment to a businessman. 

French judges found Ms Lagarde guilty of negligence for failing to challenge the state arbitration payout to the friend of former French President Nicolas Sarkozy. 

The 60-year-old, following a week-long trial in Paris, was not given any sentence and will not be punished. 

The Court of Justice of the Republic, a special tribunal for ministers, could have given Ms Lagarde up to one-year in prisonand a €13,000 fine. – UK Independent

For Europe, the advent of a financial criminal running its central bank should not be a shock since its current Chief Mario Draghi was well known for fudging Italy's books in order to get them into the Continental Coalition.

What Lagarde's occupation as the head of the ECB portends is nothing short of terrifying for the populations of Europe as she has long admitted to being a staunch advocate of negative interest rates along with the need to eliminate cash in order for the central bank to seize total control over Europe's monetary system.

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Fed set to institute full monetization of debt as early as 2020

12:58 PM bonds, central bank, deutsche bank, fed, monetizing, monetizing debt, repo, repo facility No Comments

While it is one thing to aid your primary dealers in buying U.S. Treasuries during scheduled auctions, it is quite another thing entirely to allow those banks to then borrow upon these very debt instruments you created.  And according to Deutsche Bank, this is exactly what will happen by next year.

In a report out by analysts at Deutsche Bank on July 14, the Fed is likely to launch a Repo facility in 2020 which would put the U.S. central bank on the main highway of full monetization.

Analysts from the German financial giant Deutsche Bank expect the US Federal Reserve to launch a new liquidity adjustment facility next year in order to spur US lending and business activity without implementing excessive monetary stimulus. 

Deutsche experts believe the Fed will introduce a repo scheme, providing commercial banks with money through repurchase agreements. 

According to a report by Deutsche Bank, the Fed is seeking to boost its lending to commercial banks by using Treasury bonds and other securities – mostly, bonds – as collateral. The repo facility could be formally introduced in several months, and Fed officials could soon start testing the scheme. 

“We reaffirm our expectations that the Fed could test this facility later this year and launch it for full-scale operations in early 2020”, Steven Zeng of Deutsche Bank wrote in the research note. – Sputnik News

Many analysts were already under the impression that since 2008, the Fed was monetizing nearly everything they could get their hands on.  But should they follow through with Deutsche Bank's assessment of a new Repo facility, then the monetization debate is now over.

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"I love you 3000" as all indices close at all-time highs with S&P 500 and Dow on doorstep of 3000 and 27,000

10:13 AM all time high, dow, equities, gold, nasdaq, s&p 500, stock market No Comments

In the market shortened session of July 3, risk was fully on as for the first time since January of last year, all three primary U.S. indices closed out the day at new all-time highs.

In fact if it weren't for the modified holiday trading schedule, the Dow probably would have crossed the 27,000 point and the S&P 500 would have received the Avengers Endgame treatment where Ironman's daughter told Tony that "I love you 3000".

Dow:

S&P 500:

Nasdaq:

Meanwhile, gold was sold off for equity risk after spiking to a new 6 year high yesterday of $1438.

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Europe doubles down on monetary destruction by nominating IMF Chief Christine Lagarde to replace Mario Draghi

9:36 AM austerity, christine lagarde, ecb, imf, Mario draghi, negative interest rates, numerology No Comments

When the history books are written years in the future, the legacy of Mario Draghi will not be a good one.  In fact as the ECB head prepares to ride off into the sunset this October, he may well be labeled the central banker who destroyed the continent's single currency system.

And sadly, it appears that Brussels will not learn from their mistake in appointing a Goldman Sachs tool who was previously known for manipulating the numbers to ensure Italy made it into the Coalition, and is instead doubling down by nominating globalist and current head of the IMF Christine Lagarde to become the next President of the European Central Bank.

It's rare to find someone who is consistently wrong on everything. Christine Lagarde, whom the EU just anointed as the president of the ECB, comes close. 

To emphasize the point, Negative Interest Rates Benefit the Global Economy, Says IMF Chief Christine Lagarde. 

Subzero interest rates in Europe and Japan are “net positives” for the global economy, International Monetary Fund chief Christine Lagarde said Tuesday, though she warned that the side effects of unorthodox central-bank policies should be closely monitored. 

“We see the recent introduction of negative interest rates by the ECB and Bank of Japan —though not without side effects that warrant vigilance—as net positives in current circumstances,” Ms. Lagarde said. – FX Street

So to put it bluntly, Europe is preparing to replace one of the worst central bankers in history with an individual who not only praises his negative interest rate actions, but also believes Japan's 30 years of stagnation has been a good thing.

We have to wonder if Lagarde checked her numerology charts on this one, as Europe better be prepared for a another 4-10 years of jawboning and further money destruction.

With a little bit of austerity of course thrown in for good measure.

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Trump finds his perfect Fed candidate as he nominates gold standard and zirp enthusiast Judy Shelton to the Board of Governors

8:25 AM fed, gold standard, judy shelton, president trump, zirp No Comments

On July 2, President Donald Trump finally played his long-awaiting 'Trump Card' as he officially nominated Judy Shelton to fill a vacancy on the Central Bank's Board of Governors.

I am pleased to announce that it is my intention to nominate Judy Shelton, Ph. D., U.S. Executive Dir, European Bank of Reconstruction & Development to be on the board of the Federal Reserve Judy is a Founding Member of the board of directors of Empower America and has served on the board of directors of Hilton Hotels. - zerohedge

Not ironically, gold prices shot up to new 6 year highs on this news which came about an hour after the markets had closed.

However being a staunch advocate of a gold standard is not the only attribute that the President likes in Dr. Shelton as she is also a big believer in taking interest rates back down to zero.

In May, Shelton told the New York Times that Fed’s practice of paying interest on excess money that banks keep at the Fed was "like paying the banks to do nothing." She said it discourages lending of money and that she favors reducing interest rates to zero - something Trump has also criticized the bank for failing to do. – Sputnik News

In the end Dr. Shelton's perspective appears to fit perfectly into what Donald Trump wants for the financial system... destruction of the dollar and central bank system followed by the opportunity once it has collapsed to return to a system of gold backed money.

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Gold regains $1400 while silver hits $15.50

7:08 PM gold, gold price, silver, silver price No Comments

Following Jay Powell's signal that interest rate drops are on the way, just a day later on June 20 the price of gold suddenly broke through its 6 year hiatus to finally cross the Rubicon of a $1400 handle.

Additionally, silver has jumped strongly into the $15 handle with a move over $15.50.

The question that remains is... are we now at the point where the cartel either cannot, or will not work to keep down the price?  We should probably find out the answer in the coming days.

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Economic sanctions against Russia hit a snag as Moscow's new SWIFT alternative has nations lined up to participate

6:56 PM banks, dollar, economic sanctions, russia, spfs, swift, tariffs No Comments

Tariffs and economic sanctions... these are the primary weapons that America has left in their arsenal as their influence over other foreign powers declines.  But unlike the consensus that Europe and the West willingly provided Washington over the past several decades, even this is beginning to erode as new controllers over global finance begin to rise.

In fact this new paradigm shift has not emerged from a single country, but from a partnership of equals that have the resources and military might to not only take on the U.S. and dollar hegemony, but to quite possibly even usurp it.

Russia's SWIFT alternative open for business

Banks based in several states are planning to participate in the Russian-developed money transfer network that serves as an alternative to the traditional SWIFT system, according to the head of the Central Bank of Russia (CBR). 

“It is open for external connection, we are developing it for our trade partners if they want to join. This work is already ongoing and banks of several countries are going to join, test connections already exist,” Elvira Nabiullina said at the first EU-Russia Student Conference in Moscow on Saturday. “We think it will be developing.” 

Moscow started working on its own payment service, which is dubbed the SPFS (System for Transfer of Financial Messages), amid threats that it could be disconnected from the internationally recognized SWIFT (Society for Worldwide Interbank Financial Telecommunication) system back in 2014. – Russia Today

Approximately 100 years ago, President Calvin Coolidge stated that the business of America is business.  But in the 21st century that slogan appears to have been passed onto two other regions of the world, where it is quickly being picked up by the growing financial centers of Moscow and Beijing.

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Hey Bernie, AOC, and all Democratic candidates... high school Valedictorian shows why government run socialism never works

1:18 PM aoc, bernie sanders, bureaucracy, education, healthcare, jospeh stalin, school system, socialism No Comments

With nearly all the primary Democratic candidates for President trying to push America full bore into authoritative Socialism, the one thing supporters of the economic model fail to realize is that programs and processes are not run by the figureheads, but by people and bureaucracies that in many cases are flawed and corrupt.

And in a wonderful example of how a small and local bureaucracy nicely hamstrung the best student in a California High School, a speech given by the Valedictorian laid out exactly why any and every form of Socialism fails.

Buhr began by unloading on her counselor, to whom she said: "Thanks for teaching me to fend for myself: You were always unavailable to my parents and I, despite appointments. ... You expressed to me your joy in knowing that one of your students was valedictorian, when you had absolutely no role in my achievements. 

She then slammed the office staff, saying "Thank you for teaching me how to be resourceful. Your negligence to inform me of several scholarships until the day before they were due potentially caused me to miss out on thousands of dollars. 

When applying for a work permit, you repeatedly turned me away, despite confirming with my employer and my parents that all of my paperwork was filled out correctly. I’ve had to escalate issues with staff to an assistant principal various times to reach any sort of solution." 

And finally - "To the teacher that was regularly intoxicated during class this year, thank you for using yourself to teach these students about the dangers of alcoholism. Being escorted out of school left a lasting impression," said Buhr, receiving applause from the audience.  

"I hope that future students and staff learn from these examples," she said in conclusion. - Zerohedge

When Lenin triumphed in overthrowing the Tsar of Russia back in 1918, it wasn't until his successor Joseph Stalin took power that the Revolution was able to achieve full authority over the land and people.  And the reason for this was because Stalin was trained as an administrator... a bureaucrat, and used his skills of organization to create a a system where the state thrived and the people lived in poverty and bondage.

Once power was in Bolshevik hands, the party leadership gladly left to Stalin tasks involving the dry details of party and state administration. In the power struggle that followed Vladimir Lenin’s death in 1924, the intellectual sophistication and charismatic appeal of Stalin’s rivals proved no match for the actual power he had consolidated from positions of direct control of the party machinery. By 1929 his major opponents were defeated; and Stalinist policies, which had undergone several shifts during the power struggle, became stabilized. Stalin’s doctrine of the monolithic party emerged during the battle for power. – Encyclopedia Brittanica

School systems today, along with most of the government, are built on many of the same bureaucracies originally forged out of Stalinism.  In this, there is to be no dissent, no one is allowed to be special or individual, and the bureaucracy is 'above the law' in that they cannot be held responsible for their actions.  And even beyond the education system we are seeing this today in full view of the FBI, the VA, and in nearly all other government agencies.

Today in Britain the bureaucracy that makes up their National Health System (NHS) has led to thousands of deaths per year as officials either ignore or conduct negligence under their Socialist based system.  And with all these current examples above occurring without nations even actually being labeled as Socialist, imagine how much worse it will be if the Marxists running for President have their way in not only bankrupting America, but in putting the people under a system that saw tens of millions die in both China, and the former Soviet Union.

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Bitcoin's latest rise to $9000 shows that value investing is dead and that Americans are simply sheep running to the newest momentum trade

12:23 PM bitcoin, cryptocurrency, investing, momentum trading, momo, value trading 1 Comment

It was only about 18 months ago when cryptocurrency mania had driven up the price of Bitcoin to over $20,000 before market and sovereign interventions subsequently killed the asset class by more than 70%.  However as Chinese elites recently began using the crypto as a means to get their money out of the Yuan currency over the past two months, suddenly Bitcoin has become popular again as seen by the latest numbers in Google Trends.

It's hard to believe that Bitcoin has recently become more popular on Google than President Trump, Tesla, and Kim Kardashian, reported ConsenSys, a blockchain software technology company. - Zerohedge

Sadly, those who bought into the new hype have already lost nearly 13% as the price has fallen down below $8000, and on some days as low as $7400.  And even worse still is the fact that only once since December of 2017 has the price of Bitcoin reached half ($10,000) of its all time high from 18 months ago.

At the bottom of this re-emergence of interest in Bitcoin is the fact that Americans today are momentum traders rather than buyers of value.  And no greater example of this can be seen in how silver, which is a vastly important metal in the production of everything from Smartphones to Solar Panels, is at a historic low in the gold to silver ratio, and is the only, and I repeat only asset who's current price is below it's 1980 price.

There is a reason why the rich stay rich and why the average person does very well if they are able simply to just break even.  And that is because very few have the emotional fortitude or the diligence of learning to invest in what the wealthy do when the wealthy do, and instead relegate themselves to chasing momentum long after the smart money bought when there was formerly blood in the streets.

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Last week's St. Petersburg International Economic Forum (SPIEF) solidified that America is fighting a 2 on 1 Cold War for global supremacy

11:46 AM china, cold war 2.0, multi-polar world, russia, spief, st. petersburg international economic forum, uni-polar world No Comments

For years, both Davos and Bilderberg were considered the forms in which the world's highest elite determined the future for economies and governments.  But with the re-emergence of both China and Russia from the ashes of their former empires, neither of these Western confabs can hold a candle to a new forum that hails from St. Petersburg.

Last week marked the 22nd year of the St. Petersburg International Economic Forum (SPIEF), and the 2019 version saw a major geopolitical event take place which fell under the radar for most of the media.  That is because the event that happened was the un-official, but very publicly implied partnership between Russia and China against the hegemony of the United States.

And as one of the more highly touted economic and geopolitical analysts Pepe Escobar stated, the Unipolar world is now over.

Something extraordinary began with a short walk in St. Petersburg last Friday. 

Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI). 

In his St. Petersburg speech, Xi outlined the “comprehensive strategic partnership”. He stressed that China and Russia were both committed to green, low carbon sustainable development. He linked the expansion of BRI as “consistent with the UN agenda of sustainable development” and praised the interconnection of BRI projects with the Eurasia Economic Union (EAEU). He emphasized how all that was consistent with Putin’s idea of a Great Eurasian Partnership. He praised the “synergetic effect” of BRI linked to South-South cooperation. 

And crucially, Xi stressed that China “won’t seek development to the expense of environment”; China “will implement the Paris climate agreement”; and China is “ready to share 5G technology with all partners” on the way towards a pivotal change in the model of economic growth. 

It was obvious this was slowly brewing for the past five to six years. Now the deal is in the open. The Russia-China comprehensive strategic partnership is thriving; not as an allied treaty, but as a consistent road map towards Eurasia integration and the consolidation of the multipolar world. – Consortium News

Well President Trump... the ball is now in your court.  And with your European partners in the West edging ever closer to the side of Eurasia and the Pacific Rim, are President's Putin and Jinping the 'great friends' you continuously say they are?

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