111214 Gleaning National Cathedral To Host First Antichrist Muslim Prayer (As A Reminder Obozo Was To Speak There And His Post 0 Interest 0:00hrs 100% Debt To GDP 666 Washington Monument Earthquake Speech Prevented Him. This Antichrist Prayer Shall Curse The Nation And D.C. Will Require Judgment To Fall Upon It) Antichrist Muslims Killed Christmas At American School ObozoCare Creep Declares Americans Are Stupid Enough For His Lies And The Department Of JUSTusCriminals Stands In Full Contempt As A Criminal EnterPRIZE For The Bankers That Ripped Off The World
The United States was founded upon certain important principles — one of which guarantees its citizens the right to free speech.
In the past couple of decades or so — particularly since 9/11 — Americans have witnessed this right being increasingly eroded. Authorities have begun identifying ordinary citizens as “potential terrorists” merely for having strong views and opinions regarding a number of topics.
The bottom line is that the stock market, the greatest false indicator of all time, is on the verge of implosion; and the banking elites are positioning themselves to avoid blame for this implosion while the rest of us are being sold on the most elaborate recovery con-game ever conceived. But what is the purpose behind this con-game? Lies are generally only told by those who hope to gain something through deception. What do the elites hope to gain by creating a facade of recovery?
They have openly admitted to the public on numerous occasions EXACTLY what they want — namely, the institution of a truly global and centralized economic system revolving around a highly controlled world currency framework and dominated by a select cult of banking oligarchs. Anyone who claims that this is not the goal is either a liar or an uneducated fool.
“This process of wealth transfer is what our central banks have been doing. Bank of Japan’s been obvious about it, our own Federal Reserve here in the US is doing it, the European Central Bank is doing it…Your and my future is being decided by literally about three dozen people across the world who make these sorts of decisions.”
The only coherent response that regular citizens can exert, when dealing with the mega financial houses, is to avoid entanglements whenever possible. What good is it to establish accounts, whether as loans, savings or investments, when the rules of survival are stacked against main street customers?
Firms like JP Morgan or Goldman are not terrified by fines because they are protected by the “To Big To Fail” culture. Bailouts are a way of life and infusion of easy money into the liquidity flow of balance sheets employ the most creative accounting techniques to cover up accurate net worth.
The threat of principals actually doing jail time is so remote that the probability is far greater that the next Secretary of the Treasury will come from their ranks.
Former FBI Weatherman Task Force supervisor, Max Noel, noted that the FBI utilized a CARL test when it conducted background checks on various suspects. The acronym CARL stands for Character, Associates, Reputation, and Loyalty is used to assess candidates fitness to hold the highest office in the country. On each of these four points of power, Obama fails and fails miserably. Like many FBI law enforcement agents and officials, Noel was alarmed by the fact that someone like Barack Obama could capture the presidency. For some unexplained reason, Obama was never vetted before he became a candidate for the presidency by the FBI. This is an unacceptable result of our national security system and is wholly suggestive of internal plot to allow the installation of a blatantly communist advocate into the highest political position in America.
Letters were sent out by the Veteran’s Benefits Administration which informed veterans that they could be determined “incompetent” to handle their financial affairs by the VA and would be assigned a fiduciary adviser. This ruling of incompetence would be forwarded to the FBI’s NICS background check system though, which would automatically make them ineligible to purchase or possess a firearm.
These determinations of incompetence were done arbitrarily and without a clear and public set of rules, regulations, or criteria, and skipped over the whole “due process” right guaranteed by the Fifth Amendment, or an adjudication by a judge, as required by law.
The VA was sued over the letters, and little more has been heard about them since then.
However, this is just another example of how Obama has taken a dim and disrespectful view of our nation’s military and veterans, and of the Constitutional rights that those veterans defended.
This is also an example of the treasonous way in which Obama and his sycophants have systematically tried to demonize the Second Amendment and returning veterans, in their never-ending quest to disarm the American population, especially those with the training and determination to stand up and resist tyranny.
^^^…amazing anyone in the Executive Branch, especially the POTUS clown, has not been hung yet. Obviously, the reason ”IS” prophetic judgment. The treason, fiscal crime(s), continuous attack against the people and their Constitution shall only wax exponentially worse. By the time 2015 ends and 2016 begins all Hell will be unleashed. Tribulation is right on time with the signs above and below. 2014 will look like a pre tribulation picnic.
ESA Operations have just confirmed – Rosetta’s lander named “Philae” successfully landed on Comet 67P/Churyumov–Gerasimenko on November 12, 2014. The touch down happened about 15:34 UTC, while the confirmation signal, as expected, arrived shortly after 16:00 UTC.
Philae is now on a comet, 511 million km away from Earth. “We are there, and Philae is talking to us, ” ESA announced at 16:09 UTC.
Radiation levels spike 7,000% at US nuclear site — Coming from Plutonium, Uranium, Americium, or other alpha emitters — AP: Workers shelter in buildings — Official: Contaminated sample is so safe “it could have been… put in someone’s lunch bucket” (VIDEO)
A large earthquake that originated in Kansas was felt by residents across Oklahoma, Texas And Nebraska Wednesday afternoon.
The 4.8 magnitude temblor rumbled at 3:40 p.m., eight miles to the south of Conway Springs, Kansas, or about 124 miles north of the Oklahoma City metro, at a depth of three miles.
Washington National Cathedral is hosting a Muslim prayer service for the first time on Friday, 11/14/14
The prominent Episcopal cathedral often hosts national events, such as presidential funerals, and has hosted Antichrist Muslims at various interfaith services in the past. But planners say this is the first time the cathedral has invited Antichrist Muslims to lead their own prayers there, which they call a “powerful symbolic gesture.”.
Judgment is certain to come. This time a shaking is not called for, an event more consequential ”IS”. If you looked upon D.C., with a liar like Obozo the POTUS Clown sitting in the White House, and Antichrist ”(a)llah has no Son” muslim bastards are offering their Jihad based Mahdi Meathead prayer of contempt for the mercy of our Father in Christ, do you really believe Heaven shall not be so moved? It shall be interesting to witness the coming judgment and reaction. There ”IS” no doubt, the people in the Washington D.C. Metro area etc… shall remain as they were, unmoved in in contempt.
Already, Kent said, this latest swarm has surpassed a previous Nevada earthquake swarm that shook the Mogul area west of Reno in 2008, another that hit Spanish Springs last year and a third that impacted the Hawthorne area in 2011.
Since mid-July, more than 500 earthquakes of magnitude 2 or greater have hit an area located west of Nevada’s Sheldon National Wildlife Refuge about 40 miles northeast of Cedarville, Calif., and 40 miles southeast of Lakeview, Ore. The swarm increased in intensity last week, with the strongest quake of magnitude 4.7 hitting Nov. 5. Quakes have continued this week, with several exceeding magnitude 3.
“It’s certainly more vigorous than the Mogul swarm,” Kent said, adding that should a quake of magnitude 6 or greater occur, towns like Cedarville and Lakeview could be significantly affected.
A plastic vial supposedly containing a sample of the deadly Ebola virus has been sent to a major New Zealand newspaper, reports suggest.
Sky News Melbourne bureau chief Ahron Young said the vial was part of a package from a “jihadist group” sent to an office this morning, later confirmed to be the New Zealand Herald.
It arrived with a letter claiming that the liquid was a sample of Ebola. It was understood that the mailroom was evacuated and the staff were hosed down.
According to a tweet sent by the Herald, the vial was originally sent to the mailroom, but “all precautions were taken.”
US and Israeli intelligence had failed to discover Iranian secret facilities in the past, and inspections had not prevented North Korea from building a nuclear weapon, he said.
This week’s storm is part of a powerful system being pushed in by the remnants of Typhoon Nuri that hit Alaska’s sparsely populated Aleutian Islands.
“Does the Pope really think Boko Haram needs a heart-to-heart convo about tolerance? Is he nuts? Attacks, massacres, forced conversions of Christians, forced marriages and sharia: the protocol Boko Haram has been told in ghastly detail by the few fortunate survivors. Jihadists are slaughtering Christian children, kidnapping young girls and selling them in slave markets to Muslims, targeting teachers and doctors, and the Pope thinks it’s a lack of inter-faith dialogue?”.
County officials insist that they look at the issue not as a religious one, but as a secular one, which of course ”IS” a lie offered for the sake of Antichrist Islam.
Christmas and Easter have been stricken from next year’s school calendar in Montgomery County. So have Yom Kippur and Rosh Hashanah.
Montgomery’s Board of Education voted 7 to 1 Tuesday to eliminate references to all religious holidays on the published calendar for 2015-2016, a decision that followed a request from Muslim community leaders to give equal billing to the Muslim holy day of Eid al-Adha.
The controversy swirls around use of the “Seminar” period, a 40-minute window when students with adequate grades are permitted a degree of free time during the school day.
According to court documents, students excused from Seminar to enjoy the free time are permitted to engage in “a virtually unlimited variety of activities,” including free movement in the school’s public areas, discussions with other students, texting, getting a snack, visiting with teachers or even scheduling official meetings of school clubs.
The one thing Windebank and his fellow Christians have been told they can’t do, however, is feel free as Americans to talk about God.
The lawsuit seeks the ban be lifted, a declaration of the ban as unconstitutional, attorneys’ fees and “nominal damages in the amount of one dollar for the violation of [Windebank’s] constitutional rights.”
The church, founded in 1830, banned polygamy in 1890 when the U.S. government threatened to deny Utah statehood.
The Mormon cult has admitted that founder Joseph Smith married about 40 women, including a 14-year-old and others who were already the wives of his followers, having maintained for nearly 200 years that he was monogamous.
The cult has tried to gloss over aspects of its history, including the polygamy practiced by Smith and Brigham Young, who helped found Salt Lake City, Utah, the headquarters of the Mormon church.
The Mormon cult, based on an angel the polygamist claimed consulted with, founded in 1830, banned polygamy in 1890 when the U.S. government threatened to deny Utah statehood.
^^^LMAO, what a bunch of pathetic nut balls. They came up with the doctrine of an angel with masonic overtones and sold-out to the government mark of the beast, forsaking their own pathetic marriage standard they claimed was holy. If you are still a Mormon cult member, heads up; if you are still confused about your bruised heal, stop kicking your own butt, dumb ass.
More Israelis killed by terror in past month than last two years
Six Israelis murdered by terrorism in the past month compared to five in the past two years, 100 Israelis have been wounded by wave of terrorism in past month
Imagine a country where righteous Christian pastors are ordered by the government to surrender their sermons, emails, and texts regarding statements about homosexuality. Where would such an outrageous thing happen? Cuba, North Korea, China, Iran? No…it happened in Houston, TX. Pastor Hernan Castano tells Rick Wiles about the day a city official walked into his Bible study class and served court papers on him. .
About 13.6 million people, equivalent to the population of London, have been displaced by conflicts in Syria and Iraq, many without food or shelter as winter starts, the UN refugee agency UNHCR says.
Amin Awad, UNHCR’s director for the Middle East and North Africa, said the world was becoming numb to the refugees’ needs.
“Now when we talk about a million people displaced over two months, or 500,000 overnight, the world is just not responding,” Mr Awad said.
The 13.6 million include 7.2 million displaced within Syria – an increase from a long-held UN estimate of 6.5 million, as well as 3.3 million Syrian refugees abroad, 1.9 million displaced in Iraq and 190,000 who have left to seek safety.
UNHCR said it was short $58.5 million in donations to prepare 990,000 people for winter. This money would cover basic supplies such as plastic sheeting and warm clothing.
Without funds to cover all its needs, the agency is prioritising assistance to people at higher, colder altitudes and then the more vulnerable, such as newborn babies.
Mr Awad said Russia and China, both in the UN Security Council, whose members, including the big Western powers, have failed to agree action to defuse the war in Syria, came in bottom of a list of top donors and should contribute more.
“Politically they cannot really be indifferent, therefore humanitarian [aid] is an imperative and it has to be put first and foremost if there is no [political] settlement … They need to contribute one way or the other, like the others do,” he said.
Spot the banana republic:
Nation #1 spends and issues tens of trillions in taxpayer funds and debt, crushing the growth potential of future generations, just to bail out a banking sector full to the brim with criminal “riggers” (as today’s settlements once again prove), where bubble mania was so pervasive not a single bank would have survived absent a global central bank bailout, and where bank executives wouldn’t bend over for anything less than a million.
Nation #2 just sentenced two senior officials of a bank that collapsed under (a measly by New Normal standards) $1 billion in debt to 15 years in prison each for embezzlement and fraud.
Nation #1 is, of course, the US (or any other western nation). Nation #2 is Afghanistan.
Which one is the banana republic again?
And while Afghanistan’s banking sector is now well on the road to recovery and doesn’t need endless central bank bailouts (unlike the US, Europe or Japan) the nation does remain a banana republic but for other reasons: namely, US forces refuse to leave. Why? One look at the chart below should explain
Why Afghanistan remains an incubator – under constant US supervision – for the heroin trade, read “7.6 Billion Reasons Why The US ‘War On Drugs’ In Afghanistan Failed”
Anyone with half a brain should be able to see the economic disaster that is approaching.
The parallels between the false prosperity of 2007 and the false prosperity of 2014 are rather striking. If we go back and look at the numbers in the fall of 2007, we find that the Dow set an all-time high in October, margin debt on Wall Street had spiked to record levels, the unemployment rate was below 5 percent and Americans were getting ready to spend a record amount of money that Christmas season. But then the very next year the worst economic crisis since the Great Depression shook the entire planet and everyone wondered why most people never saw it coming. Well, now a similar pattern is unfolding right before our eyes. The Dow and the S&P 500 both hit record highs on Monday, margin debt on Wall Street is hovering near record levels, the unemployment rate has ticked down a little bit and Americans are getting ready to spend more than 600 billion dollars this Christmas season. The truth is that the economy seems pretty stable for the moment, and most people cannot even imagine that an economic collapse is coming. So why are so many really smart people forecasting economic disaster in the near future?
Before agreeing to answer questions from The New York Times in prison, where he shares a cell with four others, including two convicted murderers, he read out a lengthy handwritten statement that he said explained the purpose of his hacking.
A potpourri of conspiracy theories about the terrorist attacks of Sept. 11, 2001, the 1997 death of Princess Diana and alleged plans for a nuclear attack in Chicago in 2015, it said: “This world is run by a group of conspirators called the Council of Illuminati, very rich people, noble families, bankers and industrialists from the 19th and 20th century.”
The U.S. Embassy issued a warning on Monday afternoon urging U.S. citizens to remain indoors, close windows and doors, and turn off heating and cooling systems in order to reduce the flow of outside air.
Russia’s Emergencies Ministry eventually said the cause was a leak at a sulfur dioxide processor at an oil refinery outside town, according to Russian media reports. The chemicals discharged include hydrogen sulfide (H2S) and sulfur dioxide (SO2), both byproducts of oil processing.
Moscow City Goverment is cooperating with the Investigative Committee and the Prosecutor’s Office in investigating the Moscow Oil Refinery and other local plants.
Gazprom, which owns the refinery, has denied any accidents on site and stated that the plant is operating normally, according to the production plan.
Russia intends to have its own international inter-bank system up and running by May 2015. The Central of Russia says it needs to speed up preparations for its version of SWIFT in case of possible ”challenges” from the West.
When introducing some sanctions or publishing lists of people whose accounts were frozen one should wonder “what will happen next?” the former Secretary of State said rhetorically, because when something begins you cannot lose sight of where it is going to end.
We suspect what he means is “I regret being caught saying those comments.”
Having exposed the arrogance and self-admitted deception that was used to get the healthcare law past the “stupidity of American voters,” it seems ObamaCare architect Jonathan Gruber regrets his comments… As The Daily Caller reports, during an interview with MSNBC, Gruber explained he “was speaking off the cuff and basically spoke inappropriately,” adding, “I regret having made those comments.”
Via The Daily Caller,
Obamacare architect Jonathan Gruber said Tuesday that he regrets saying that aspects of Obamacare needed to be concealed from the public due to the “stupidity of the American voter.”
“Do you stand by the comments in that video?,” MSNBC host Ronan Farrow asked Gruber, referring to a video of Gruber explaining how a lack of transparency helped Obamacare pass into law.
The comments in the video were made at an academic conference,” Gruber said. “I was speaking off the cuff and I basically spoke inappropriately and I regret having made those comments.”
Farrow then argued on Gruber’s behalf that Gruber’s argument was more “nuanced” than people can even appreciate.
* * *
Of course, what else would MSNBC do? Starts at around 31 seconds… (Gruber comments start at 1:20)
One can read the volumes of available literature explaining everything that has transpired since the first Libor manipulation became public, then proceeding to FX, then gold and so on (next up E-minis, Treasurys, options and so on) or one can just read these 34 words which explain everything one needs to know.
“The banks have been allowed to investigate themselves,” one source familiar with the investigation told Reuters. “The investigated decide what they want to investigate, what they admit to, and how much they will pay.”
With that we saved you days of reading. And now waste the time by buying the rigged market at 11:00 am and selling it at 11:30 am every day and outperform 98% of all hedge funds.
…and ‘lest we forget, the evil bastards created and established the fraud they continue to aid and abet. Brooksley Born proved the case and fact that not only did the Legislative body lobby for the criminal banks and achieved the criminal theft of the whole world through deregulation and securitization of fraudulent securities bundedled up and reinsured, the entire law enforcement regulating body and Executive Branch continues to act in a complicit criminal manner. The fact that the soulless Citizen’s United Supreme Court has established the political means to continue to support fraud through their new world order standard campaign finance rule of thumb should confirm to all persons there is no current defense against the government and banker fraud being waged against the world. In this case there is no recourse other than an uprising against the the heavily armed government employees that are now serving the banks. The only way to do this nonviolently is to boycott and divest.
…but as the ObozoCare architect pointed out, Americans are too stupid to be so moved to defend themselves much less the world.
^^^They did not believe in free markets, they wanted fraud markets and failure meant a bonus. They won, the world lost and now it’s 666 time.
With OTC trading is still no man’s land, meaning FX is exempt from regulation since the 1970s, the original criminal syndicate are the good old bucket shops made popular in such movies as Boiler Room and the Wolf of Wall Street:
That was intended to smooth currency transactions between banks, which had their own regulators. But it created the opening for OTC forex trading. With no agencies minding the store, bucket shops and con artists pitched forex trading to naive investors, FXCM’s Niv says.
“In the late ’90s, the FX business was 100 percent made up of boiler rooms,” he says.
Funny, because it is the same now. Only the criminals are now called “reputable banks.”
So with a rigged casino and 50x leverage what is one to do? Clearly the logical one is to stay away from such a broken, manipulated market:
As today’s latest example of pervasive, apparently endless criminality at the world’s largest banks, where once again the shocked public is exposed to a culture of sociopathic, unchecked greed and perpetual raping of clients, showed, one is either part of the all too literal “cartel”, or one loses money.
However, for those who are unfamiliar with the nuances of FX trading, one doesn’t even have to be on the other side of the world’s most criminal, above the law, cartel of bankers to have no P and only L: the fundamental premise of currency trading, whereby one can and will be stopped out thanks to leverage as high as 50x – by others but mostly by one’s own brokers as we learned today courtesy of JPM, Citi, RBS, HSBC and UBS – is the very same reason why as retail FX trader Dan Gratton, a 71-year-old retiree who lives on Social Security in Kingman, Arizona has found out: “Probably the most consistent thing is losing.”
Here is HSBC crucifying client stops:
For example, an HSBC trader in a chat room referred to “going to go for broke at this stop… it is either going to end in massive glory or tears”. On another occasion, the same trader refers in a chat room to the fact he is “just about to slam some stops”. When asked by a colleague whether a particular client’s stop loss orders were “a pain for you guys”, another HSBC trader replied “nah love them … free money” and “we love the orders … always make money on them”.
Because a stop-loss muppet is born every minute.
* * *
Here is Citi rigging the fix…
During the period from 1:14:29pm to 1:15:02pm, Citi bought EUR374 million which accounted for 73% of all purchases on the EBS platform. At 1:15:00pm, the bid (buying price) and the first trade for EUR/USD on the EBS platform was 1.3222. The ECB subsequently published the fix rate for EUR/USD at 1.3222.
The information disclosed between Citi and Firms A, B, C and D regarding their order flows was used to determine their trading strategies. The consequent “building” by Citi and its trading in relation to that increased quantity at the fix were designed to increase the ECB fix rate to Citi’s benefit. Citi bought EUR prior to the 1:15pm fix in anticipation that the fix rate at which it would sell EUR would be higher than the average rate at which it had bought. The placing of large buy orders by Citi immediately prior to 1:15pm was designed to achieve this outcome by improving the chance that the first trade on the EBS platform at 1:15:00pm, which it believed to be the basis for the ECB fix, was at a higher level. Citi’s trading in EUR/USD in this example generated a profit of USD99,000.
Subsequent to the ECB fix, Citi’s trading was variously described by other traders in chat rooms as “impressive”, “lovely” and “cnt teach that”. Citi noted “yeah worked ok”. When the fix rate was published to the market, Firm A commented “22 the rate” and Citi replied “always was gonna be.”
* * *
And taking out client stops:
During its investigation, the Authority identified instances within Citi’s G10 spot FX trading business of attempts to trigger client stop loss orders. These attempts involved inappropriate disclosures to traders at other firms concerning details of the size, direction and level of client stop loss orders. The traders involved would trade in a manner aimed at manipulating the spot FX rate, such that the stop loss order was triggered. Citi would potentially profit from this activity because if successful it would, for example, have sold the particular currency to its client pursuant to the stop loss order at a higher rate than it had bought that currency in the market.
This behaviour was reflected in language used by G10 spot FX traders at Citi in chat rooms. For example, a Citi trader referred in a chat room to the fact he “had to launch into the 50 offer to get me stop done”. On another occasion, a trader at Citi described in a chat room how he “went for a stop”.
* * *
Finally, here is RBS:
In the period leading up to the 4pm fix, RBS increased (or “built”) the volume of GBP it would sell at the fix via a series of trades conducted with other market participants. RBS commenced this “building” after Firm A’s disclosure of its net sell orders at 3:22pm. Subsequently RBS received further client orders for the fix and briefly had net orders to buy GBP25 million before further “building” and client orders resulted in RBS having to sell GBP at the fix. Ultimately, RBS’s net sell orders associated with its client fix orders was GBP202 million; it “built” the volume of currency that it needed to sell at the fix to GBP399 million, well above that necessary to manage the risk associated with net client orders.
From 3:50:30pm to 3:52:10pm, RBS placed a series of sell orders in the GBP/USD currency pair on the Reuters platform. During this period, RBS sold GBP93 million and the GBP/USD rate dropped from 1.6276 to 1.6250. At 3:52pm, Firm C commented “nice job gents”.
In the period from 3:50:30pm to 3:59:30pm (i.e. immediately prior to the 4pm WMR fix window), RBS sold a total of GBP167 million and Firm A sold GBP26 million. Together they accounted for 28% of all sales on the Reuters platform during this period. The GBP/USD rate steadily dropped from 1.6276 to 1.6233. These early trades were designed to take advantage of the expected downwards movement in the fix rate following the discussions within the chat rooms described above.
During the 60 second fix window, RBS sold GBP182 million, which accounted for more than 32% of the sales in GBP/USD on the Reuters platform. RBS and Firm A together accounted for 41% of the sales in GBP/USD on the Reuters platform during the fix window. During this period, the GBP/USD rate fell from 1.6233 to 1.6213. Subsequently WM Reuters published the 4pm fix rate for GBP/USD at 1.6218.
The information disclosed between RBS and Firms A, B and C, regarding their order flows was used to determine their trading strategies. The consequent “building” by RBS and its trading in relation to that increased quantity in advance of and during the fix window, were designed to lower the WMR fix rate to RBS’s benefit. RBS’s trading in GBP/USD in this example generated a profit of USD615,000.
The trading was discussed by the participants in the chat rooms subsequent to the fix, with references to “I don my hat”, “welld one [sic] lads”, “what a job”, “bravo” and “[RBS] is god”. RBS commented when the 4pm WMR fix rate was published “1.6218…nice”, whilst Firm A commented later on ”we fooking killed it right… [Firm C], myself and RBS.”
We finally have the answer, courtesy of the FCA’s partial and very much selective disclosure of FX rigging findings by “The Cartel”, the “Bandits” and so on, as part of its wrist-slapping settlement, just how the big boys make millions in FX on every single fix. Hopefully one day the regulators, who are as corrupt and conflicted as the banks they quote-unquote police, will reveal all the documents in their possession and let the public decide what is important and what isn’t. But in the meantime, for all those curious just why the Too Big To Fail are also Too Big To Prosecute, here is the blow by blow.
In other words, the Fed leans on concrete inflation and unemployment data to form policy. That sounds intelligent, straightforward, and simple; however, it’s the kind textbook talk we should expect from someone living in a world of theory. Most of the time, the person making these statements has never been responsible for or had her job performance measured by a sales budget, expense budget, or achieving profit goals.
As I’ve mentioned before, in the words of Yogi Berra, “In theory there is no difference between theory and practice. In practice there is.”
Ms. Yellen quickly discovered that Yogi was right. In May 2014, during testimony before a joint congressional committee, she said the 6.5% unemployment goal was being taken off the table, and she refused to give Congress any goals or timelines. She simply repeated that rates would remain near zero for a considerable time and would rise only when stronger economic conditions allowed.
Can you imagine the president of any major corporation standing up at a stockholder meeting and refusing to answer shareholders’ questions? “I’m not sure how much we will sell next year, nor do I know how much money we will earn. But when we get there I will tell you. You can trust me.”
Well, the day arrived, and Ms. Yellen says it’s time for bond buying to stop. And a few months down the road, the Federal Reserve is likely to begin slowly raising interest rates, even though she said she plans to keep interest rates low for a considerable period of time. Why? The unemployment rate, as reported by the BLS and shown in the graph below, is now below 6%.
I might be a 74-year-old with aging eyes, but even I can see that the line is going down. If true unemployment were going down, wouldn’t labor force participation be going up?
When it comes to raising interest rates Ms. Yellen has a big problem. Greenspan let that cat out of the bag at a recent New Orleans investment conference attended by members of the Casey Research team, noting that it was naïve to believe the Federal Reserve is independent of the government.
To justify the Fed’s easy-money policies, he said the government’s insatiable need for capital would have “crowded out” the rest of the economy. In straight talk that means if he hadn’t juiced the system with easy money, interest rates would have risen so high that capital would have been too expensive for the private sector. There is a universal truth: government-spending obligations preempt the need for sound money policies every time.
Ms. Yellen can trumpet all she wants about the Fed promoting employment and keeping inflation under control. Mr. Greenspan has made it clear that the real mission of the Fed is that of dealer to government spendaholics.
Over time, addicts want more frequent injections and bigger doses, and Ms. Yellen has inherited an addict in advanced stages. To solve the real problem (the addiction) requires an effective intervention (hopefully before it’s too late) and real behavioral change or the addict dies an ugly death.
Dr. Lacy Hunt estimates that every 1% increase in the interest rate would add $130 billion annually to the budget deficit. Projected deficit increases will run his estimate to $260 billion. Currently, if interest rates increased 4% it would add $520 billion to the deficit, accelerating the need for even more juice.
The government has reported that the annual deficit is going down. The Fed is keeping a lid on interest rates. When government debts are sold in a free market, though, interest rates will rise. Yellen knows this and she is doing everything she can to hide it. Ask her to set a target? Forget about it!
So, what do Siegfried and Roy have in common with Yellen? Both lean heavily on smoke and mirrors. Maybe it’s time for her to take their place in Las Vegas.
Early in 2014, when the FX rigging scandal was still news, one of the most disturbing developments to emerge was that none other than the venerable Bank of England itself had been engaged in collusion with various manipulating parties, explicitly those participating in “The Bandits Club”, “Cartel” and other chatrooms, as described in “Bank Of England Encouraged Currency Manipulation By Banks.” As Bloomberg reported at the time:
Of course, the Bank of England promptly denied everything and pulled the Hogan’s Heroes defense: “It knew nothing”, and yet something stank.
Today, as widely reported previously, 5 banks settled with regulators such as US CFTC, UK’s CFA and Swiss Sifma, for a total amount of $3.3 billion ($1.4 billion to the CFTC, $1.75 billion to the CFA). The banks were:
HSBC Holdings PLC
Royal Bank of Scotland Group PLC
J.P. Morgan Chase & Co.
Hilariously, as a result of “cooperating” the 5 banks received a 30% discount on their British settlement. Because when it comes to admitting one’s crime there is apparently a pre-Thanksgiving blue light special.
Oddly enough, none of the other usual suspect banks, such as Goldman, Credit Suisse or Deutsche, all of whom also fired legacy FX traders and dealers, were once again completely forgotten, because clearly one can’t disturb the two banks that pull the strings in the US, Goldman, and in Europe, Deutsche.
But back to the Bank of England, which it turns out, lied about its involvement in FX rigging. According to Bloomberg, alongside the FX settlement announcement, the Bank of England fired its chief currency dealer – the abovementioned Martin Mallett – a day before he was faulted in an independent investigation for failing to alert his superiors that traders were sharing information about client orders.
And then just to keep the ball rolling, the BOE lied again!
Mallett “was not acting in bad faith,” according to the Grabiner report. He wasn’t “involved in any unlawful or improper behavior, nor aware of specific instances of such behavior,” it said.
Reuters adds, that the dismissal was unrelated to an ongoing foreign exchange scandal “This information related to the Bank’s internal policies, not to FX,” a BoE spokeswoman said on Wednesday. So… the Bank’s internal policies on FX rigging?
Of course, Mallett’s fate was sealed long ago when it became clear we was the man most directly implicated with rigging at the BofE.
But back to the reason for Mallett’s termination: we don’t get it: was he fired for not rigging the market then according to the BOE’s joke of an explanation?
Actually, scratch that: we do – Mallett’s only crime was being exposed in the papers, and with that highlighting that the biggest ringleader when it comes to rigging markets is none other than the central bank itself. Which may have shocked someone in 2009 but now that even the CME openly admits foreign banks are among the biggest traders of the E-Mini, hardly anyone will notice.
And now we look forward to the next batch of revelations – the gold rigging scandal, and its prompt settlement for a few thousand dollars – and finding out how many central banks will fire personnel for not rigging that particular market.
^^^Unholy Shnikes!!! Seriously, the FBI SEC etc… all the bankers and their political lapdogs in Washington need to burn. Anyone that feels these bastards require due process at this point is delusional. All that is required is a rope for everyone of the bastards. There is no defense for the continued criminal 666 standard bearers.
Now all those traders who lost money with UBS on the other side, will get their money back right?
Just in case there is still any confusion, here is Reuters to clear things up.
Swiss regulator FINMA said on Wednesday that it found a “clear attempt” to manipulate precious metals benchmarks during its investigation into precious metals and foreign exchange trading at UBS.
“The behaviour patterns in precious metals were somewhat similar to the behaviour patterns in foreign exchange,” FINMA director Mark Branson said in a conference call with journalists.
He said that as UBS has precious metals and foreign exchange desks under combined leadership, it was not surprising to find similar behaviour.
“But we have also seen a clear attempt to manipulate fixes in the precious metal market.”
Luckily, it was only at UBS. As for Andre Flotron, who is “keen to return in due time”… don’t hold your breath.
By now, the world and his pet rabbit is aware of the ‘odd’ ramp in US equity markets as the European Close looms each day. Today – once again – was no exception, so we thought it worth quantifying this magical – and now self-fulfilling ‘pattern’.
In the last 4 months, if you bought the S&P 500 at 1100ET and sold at 1130ET, you would have won 55 times (garnering 129 points of profits) and lost 31 times (losing 70 points) for a total profit of over 59 points. This compares to the 53 point gain in the S&P 500 if you had just ‘buy-and-hold’-ed over that period… and a quick glance at the chart tells you all you need to know about volatility…
And now apply leverage.
11:00-11:30 is now the new “Tuesday”
Of course, this is conjecture, but doesn’t it seem a little odd that with all the hot money flows and violent swings in the last year around the world, that this relationship has been for all intent and purpose – flat and managed.
If we have another Lehman Brothers collapse, large-scale depositors could find themselves in the courts for years before final adjudication on the scale of their losses could be established. During this period would this illiquid asset, formerly called a deposit and now subject to an unknown capital loss, be considered money? Clearly it would not, as its illiquidity and likely decline in nominal value would make it unacceptable as a medium of exchange.
From November 16th 2014 the large-scale deposit at a commercial bank is, at best, a lesser form of money, and to many it will cease to be money at all as its nominal value can fall and it could cease to be accepted as a medium of exchange.
As the world’s smartest lawyer Charlie Munger is fond of saying, “Show me the incentive and I will show you the outcome.” Some simple mathematics reveals that the November 16th announcement will create a very major incentive for investors to change deposits into banknotes.
On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a “bank run.”
Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. The consultation document from the UK’s Treasury lists the following bank creditors who will rank ABOVE depositors in a ‘failing’ financial institution:
Liabilities representing protected deposits (in the UK the government guarantee protects 100% of deposits up to the value of GBP85,000)
any liability, so far as it is secured
Liabilities that the bank has by virtue of holding client assets
Liabilities arising with an original maturity of less than 7 days owed by the banks to a credit institution or investment firm
Liabilities arising from participation in designated settlement systems
Liabilities owed to central counterparties recognized by the European Securities and Markets Authorities… on OTC derivatives, central counterparties and trade depositaries
Liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration
Liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits
Liabilities owed to creditors arising from the provision to the bank of goods or service (other than financial services) that are critical to the daily functioning of its operations
The above list makes it clear that deposits larger than GBP85,000 will rank ahead of the bond holders of banks, but they will rank above little else. Importantly, both borrowings of the banks of less than 7 days maturity from other financial institutions and sums owed by banks in their role as counterparties to OTC derivatives will rank above large deposits.
Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any “failing” institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets of a failed bank.