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Tag Archives: Federal Reserve

Another Oligarch Preaches to the Peasants – Charlie Munger Says “Prepare for Harder World”

I’m not a fan of Charlie Munger, Warren Buffett’s right hand man. I haven’t been a fan for a long time but this statement back in 2012 really annoyed me.

Such arrogance. I’m sorry Mr. Munger but not all of us get to drink from the Fed’s fire hose of easy money. For many of us gold is a last resort. Not an investment per se, but a hedge against guys like you. Of course you know that and that’s why you said what you said.

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Is the stock market really “rigged?”

I remember sitting in my car in college listening to Howard Stern on the radio before class sometime in 2000. Howard and his crew were talking about the stock market which was roaring. The Tech Bubble was in full effect. The sky was the limit. If you weren’t in the market you were losing out. It was a similar vibe to the Housing Bubble which would emerge only a few years later.

Stern took a call from a listener.

The caller, who sounded like he might have been on the tail end of a serious bender explained in candid terms that he was affiliated with some unsavory characters and that he and his unsavory friends were manipulating the market up. He said there was little under the prices of many of the stocks which were rising at breakneck speed.

In a few months we would see how right that caller was.

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De-Dollarization Accelerates As More Of Washington’s “Allies” Defect To China-Led Bank

He who is prudent and lies in wait for an enemy who is not, will be victorious. – Sun Tzu, The Art of War

Being unconquerable lies with yourself; being conquerable lies with your enemy. – Sun Tzu, The Art of War

As we’ve said before, the SHTF moment to watch for is the day the dollar loses reserve currency status. As we’ve also said, this day is still probably pretty far off. But one gets the sense that things are very fluid and increasingly so in the global money game these days. It’s almost like a financial “cold war.” Nothing happening which is too hot. Which forces any drastic moves. But a war is being waged none-the-less. The US and dollar dominance are under sustained attack and unfortunately we have exposed ourselves thanks to our profligate ways.

Can we get our act together? Can we act like adults in coming years? I don’t know. We take too much for granted. We’ve been fat and happy for a very long time. Perhaps we aren’t hungry enough.

I do think America can be hungry (in the good sense) again however. But there needs to be fresh blood in leadership – political, financial, and elsewhere.

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In perhaps an “unprecedented” move UK joins Chinese rival to World Bank as a founding member

This is a big deal and reflects the profound lack of confidence the world has with the current global banking regime. That Britain would do this, in spite of our general objection, is very significant.

As we have said in the past, an important thing to watch for is the moment the dollar is no longer the “world reserve currency.” When that happens the game fundamentally changes. We can’t print forever any longer and the reality of the market hits. We are still far from that point, but Britain joining the Asian Infrastructure Investment Bank certainly is a solid move toward a post-dollar reserve currency world.

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New Poll: Obama Aids Rich, Not Middle Class

One doesn’t need a poll to see this. During the Obama presidency the rich have done quite well. The so called “underclass” has been largely placated. (Obama got rid of Clinton era “workfare” for instance making welfare a “life choice” again.) But the middle class, the core of America, has been hurt. There is simply no denying it. (I mean one can, but one would be wrong.)

It’s not entirely Obama’s fault. He is only a part of the puzzle, if a big part.The Federal Reserve has fundamentally undermined the economy. It has rewarded those who already had assets before the 2008 Crash with an inflated stock market. Those without assets, or those whose only “asset” is their home? Well, too bad so sad.

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Presidents should be able to declare economic emergencies: Bernanke

Has this guy not done enough damage? Is he bored? Yes, let’s let the president declare economic martial law. I don’t see how that could be a disaster at all. No way that would be abused. Why bother with even involving Congress at all? It only has the power of the purse after all. (The president by design does not have this power.)

Shoot, why don’t we declare presidents to be kings and just get it all over with. Enough of this Constitution thing.

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The GOP establishment seeks to suppress the grass roots, the “populists,” the people, again

The leadership within both major parties view the “populists” within their ranks as annoyances. Jeb Bush and his crowd and Hillary Clinton and her crowd have a similar disdain for the people who want actual change come 2016. Jeb and Hillary are the establishment. They are the anointed. They represent the long time infrastructure of their respective parties.

Vested interests within the parties know where they stand with both candidates. These interests know that the boat won’t really be rocked by either one. The people who run the parties are safe, so long as none of the rabble rousers slip through. The rabble rousers must be beaten down and beaten back.

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