Financial topics

[Higgenbotham]

https://www.youtube.com/watch?v=Le73sWDlhz4

This is an advertisement, but Jim Rickards says something interesting here. He says he approached a Federal Reserve Board Governor and said the Fed is insolvent. The FRB Governor denied it but when pressed further admitted the Fed is insolvent but said it doesn't matter.

Starting at 10:10.

"The Federal Reserve actually in some ways already has failed. I spoke to a member of the Board of Governors of the Federal Reserve and I said, you know, I think the Fed is insolvent on a mark to market basis and this Governor first resisted and said, "No, we're not," but I pressed her a little bit harder and she said, "Well, maybe," and then I just looked at her and she said, "Well, we are, but it doesn't matter.""

[John]

> http://hosted.ap.org/dynamic/stories/U/ ... 7-14-33-47
> ...

> That's interesting. They say that the sun isn't shining as much
> as expected, but elsewhere we read California is in a drought.

That's a very good point.

[Higgenbotham]

> http://hosted.ap.org/dynamic/stories/U/ ... 7-14-33-47
> ...

> That's interesting. They say that the sun isn't shining as much
> as expected, but elsewhere we read California is in a drought.

That's a very good point.

Notice how they blame the weather for every economic miss and now for a technological miss.

[Higgenbotham]

The Federal Reserve actually, in some ways, already has failed.

I spoke to a member of the Board of Governors of the Federal Reserve and I said, "I think the Fed is insolvent."

This Governor first resisted and said, "No, we're not."

But, I pressed her a little bit harder and she said, "Well, maybe."

And, then, I just looked at her and she said, "Well, we are, but it doesn't matter."

Jim Rickards actually has a transcript of the above on his website.

http://jimrickardspredictions.com/hp-tr ... aQodhXYAzQ

[Higgenbotham]

Rickards specifically pinpointed how he thought the crash will come about:

“I expect the first phase will appear as a nearly instantaneous 70% stock market crash. From the outside, nobody will see it coming. Once it becomes clear that it’s not a flash crash – it’s a systemic meltdown in the economy itself, that’s when the gravity of the situation will sink in. And there will be no digging out from it. $100 trillion is a conservative estimate for the damage. A lot can happen over 25-years as our country struggles to recover from this.”

There you have it. A CIA economic expert reveals how he thinks a 25 year depression is about to hit America. Jim Rickards can’t be dismissed as a crackpot.

http://jimrickards.blogspot.com/2014/10 ... would.html

This no shock to anybody who has been posting here but the "when" has run out of time on my clock. Also, I don't think the system can withstand an instantaneus 70% or greater crash without permanently melting down. There will be no recovery. There may be dead cat bounces like occurred after Rome reached its peak but recovery is the wrong word to use.

Which gets back to the quote from the Fed official above. The only way a Fed official wouldn't think it matters whether they are insolvent or not would be if they realize an irreversible collapse is coming no matter what they do.

[Higgenbotham]

Gerald I hear you when you talk about the human race being disgusting. I can't remember where I read it or heard it but somebody said humans are like cockroaches. There's a lot of truth to that. Like cockroaches, humans can survive damn near anywhere, from the equator to the Arctic Circle. I read a blog called Ultima Thule which means "beyond the known world" or "at the edge of the known world" where the author travels through the Arctic and shows pictures of human settlements up in the Arctic Circle where I wouldn't have thought humans can survive, but they do. Humans can survive on most anything, from mastadons to whales to insects to dandelion greens. You'd never find a polar bear on the equator or a gorilla in the Arctic Circle. But you can find a human damn near anywhere, just like a cockroach can be found damn near anywhere. Besides being adaptable to place, humans are almost instantaneously adaptable to circumstances. Part of this is due to the selective recall humans have which allows them to basically lie and not really believe they are doing it. I could go on and on, but bottom line is the human race is disgusting. It'll get downright vulgar, base and despicable when things come more unglued. Worse than animals, by far. The deliberate starvation of millions of innocent Ukainians in the 1930s being a prime example, as has been previously discussed here. This deliberate insolvency of the Fed may ultimately result in more deaths and suffering than the Holocaust in the Ukraine. The cockroach who reports that the Fed admitted their deliberate subterfuge doesn't appear outraged; he just tries to sell books off of it.

[aedens]

http://img2.imagesbn.com/p/294001373529 ... 60x420.JPG

[John]

> This no shock to anybody who has been posting here but the "when"
> has run out of time on my clock.

What does this mean? Have you gotten out of the market?

> Also, I don't think the system can withstand an instantaneus 70%
> or greater crash without permanently melting down. There will be
> no recovery. There may be dead cat bounces like occurred after
> Rome reached its peak but recovery is the wrong word to
> use.

There's no historical support for a 70% instantaneous crash, and I
don't believe it's possible. People think that computers will crash
the system in nanoseconds, but every computer system has a bottleneck,
just like every other system.

On August 28, 1929, millions of people tried to sell at the same time,
but orders could not be processed very quickly, and the ticker tape
was several hours behind.

Today, you could have every computer on earth issue sell orders, but
the stock market computers will have circuit breakers that stop
things, and there will be other algorithmic functions that will slow
things down.

A much more likely scenario is like what happened in 1929: First,
there'll be a day of panic when the market will fall 10-20%. Then
government officials will tell everyone that everything is ok, and the
market will recover. But then the market will continue to fall over
time, months or years, as happened from 1929-33 when the market fell a
total of 90%.

[aedens]

http://bigstory.ap.org/article/ecc3a300 ... i-theories split ends trimmed off

http://www.ktvb.com/story/news/politics ... /19273549/ Idaho GOP's books.

http://www.barnhardt.biz/

[vincecate]

This no shock to anybody who has been posting here but the "when" has run out of time on my clock. Also, I don't think the system can withstand an instantaneus 70% or greater crash without permanently melting down. There will be no recovery. There may be dead cat bounces like occurred after Rome reached its peak but recovery is the wrong word to use.

In Zimbabwe the currency dropped about 75% in one day before the hyperinflation started but for a US stock market 70% at once would be something. My mother, who is 80 and not in any way a serious trader, has stop loss orders. Margin trading is at or near all time highs. You can do computerized trading algorithms on your home PC for your own account. The crash could be more sudden than any other US crash.

Which gets back to the quote from the Fed official above. The only way a Fed official wouldn't think it matters whether they are insolvent or not would be if they realize an irreversible collapse is coming no matter what they do.

The central bankers think it does not really matter since they can print money. The problem is that as they print money the bonds they hold become worth even less. So they don't really get solvant by printing money, really they get a death spiral where they print more and more and their assets become worth less and less. Hyperinflation, coming to a country near you soon.

Higgie, the Yen could not stay irrational longer than I could stay solvant (though it was close) and now my Yen puts are really helping. I think the Yen avalanche has started and will not stop. I think betting on the Yen going down is about as safe a bet as you can find these days.

http://howfiatdies.blogspot.com/2014/08 ... ry-of.html