A Furious Ralph Nader Calls Out The Fed As “Tribune To Plutocratic, Crony Capitalism”; Janet Yellen Responds

We have a few really liberal (the American “modern” kind) favorites and Ralph Nader is one of them.

We like him not because he agrees with us on everything, he certainly doesn’t, but he has a moral compass. He has a deeply developed sense of right and wrong. This is something too many in the political world both on the Left and Right simply do not have.

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The Fed is never going to raise rates (?), Economy facing headwinds from overseas, Job participation rate 38 year low

As we’ve said China is driving things economically right now. The Federal Reserve doesn’t want to say it. It wants everyone to think that though our boat is leaking it is unlikely to leak as much as the rest of the the world’s economic “boats.” And right now that may be true. But we are still taking on water. The Great Economic Experiment post 2008 is failing, as many of the more market oriented have long predicted, and now the American central bank has very few options.

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Telegraph: US interest rate rise could trigger global debt crisis

Between a rock and a hard place.

Could? Well, I suppose so. In the same sense that taking drugs away from an addict is likely to trigger a “drugs crisis.”

If you don’t know, the entire financial world is on tenterhooks right now waiting for the latest declaration from the Federal Reserve, or as David Stockman puts it, the financial politburo. Will they raise rates or won’t they? Look to the skies. Stare into the crystal ball. What will the masters of the universe do?

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2008 Was a Crisis… It Was Not THE Crisis

Think of 2008 as a primer. A very difficult and disruptive primer. Nothing’s “fixed.” Markets never really cleared.

Additionally, as is explained below, the now 0% interest rates are almost locked there as the cost of serving US debt by the US government would explode upward with increased (and very likely closer to real market level) rates. That’s a sticky place to be to say the least.

But people will continue blissfully along, until they can’t.

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China cuts rates, stock futures predict 400-500 point positive open in USA

The Chinese have just cut rates and reduced the reserve requirements for banks. Now US stock futures are indicating a strong open to the upside. See, everything is fine. At least if you work for a high frequency trading firm.

Wall Street broadly is hoping, praying, that the central bank mojo will work again. We’ll see.

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The world is defenseless against the next financial crisis, warns ‘central bank of central banks’

The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.

Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.

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Ron Paul: Stock market ‘day of reckoning’ is near (VIDEO)

Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.

And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.

The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.

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David Stockman Interview: The Federal Reserve is “petrified,” has distorted entire world economy (Video)

We do not have a capitalist system any more. The central planners have taken the reins and continue to warp the economy. The dislocation when reality breaks through, and it always does eventually, could be (will likely be) much worse than the 2008 Crash and Depression.

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“It’s Carnage” – Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed

There was some debate a few months ago as to whether the massive drop in oil prices constituted a “black swan” event. Meaning that it was a completely unforeseen highly important event which had the potential to change economic sentiments quickly.

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