The Fed

The Ugly Truth Behind the Fed's Quantitative Easing

FOMC meeting minutes today

Editor's note: In this groundbreaking analysis, Shah reveals how quantitative easing - a misguided multi-trillion dollar central bank policy and the greatest financial disruptor of our time - has distorted the global economy, made many traditional investments unprofitable, and stoked wealth and income inequality. But Shah says there are steps we can take to limit some of the damage - if we act now.

The growing income and wealth gap between the rich and poor, most of whom used to be called middle class, has many fathers. But behind the scenes one primary cause emerges. It's the greatest financial disruptor of modern times: Quantitative Easing (QE).

While the jury's out on whether QE will eventually be the step-ladder that lifts us out of the lingering Great Recession, as its proponents argue, the facts demand that the verdict on QE's egregious enrichment of the rich and subjugation of everyone else is: "guilty."

And the trouble won't stop now that the United States has begun winding down its quantitative easing - the Eurozone and Japan each have massive QE programs.

Here are the facts. Policymakers and struggling middle class and poor people must take a strong stand to fight this financial plague. Here's how...

The Fed Can No Longer Stop a U.S. Dollar Collapse

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Since November 2008, the Federal Reserve has used quantitative easing to keep the U.S. dollar from collapsing.

But the Fed’s safety net is no longer available to prevent a U.S. dollar collapse.

This video explains what has changed at the Fed that would keep it from performing its role…

The "Unnatural Disaster" Ravaging Global Markets

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The tide is turning for crude oil prices. Following some nice recent gains and despite a dip on Tuesday, the market currently remains at just below $60 a barrel for West Texas Intermediate (WTI) crude oil futures in New York. The recent rise in prices would seem to be just what the smaller operators in the U.S. need to avoid a sector meltdown. A few months back, when prices were pushing lows of $40 a barrel, there was widespread talk of a wave of bankruptcies coming in the oil patch. The picture is now better, given a recovery in crude prices.

The tide is turning for crude oil prices.

Following some nice recent gains and despite a dip on Tuesday, the market currently remains at just below $60 a barrel for West Texas Intermediate (WTI) crude oil futures in New York.

The recent rise in prices would seem to be just what the smaller operators in the U.S. need to avoid a sector meltdown.

A few months back, when prices were pushing lows of $40 a barrel, there was widespread talk of a wave of bankruptcies coming in the oil patch. The picture is now better, given a recovery in crude prices.

But there is another shoe about to fall in the ongoing fight by smaller companies to survive. Here's my take on the disaster that's brewing - and the opportunities it may bring...

The Fed FOMC Meeting Minutes Release Today

FOMC meeting minutes today

The Fed FOMC meeting minutes release today (Wednesday) was yet another in a long line of U.S. Federal Reserve communications that had financial pundits abuzz but delivered nothing new.

The Fed minutes released today - documenting the discussions of the Fed's Federal Open Market Committee three weeks ago - indicated that the Fed has progressed little on pinning down a timeline for raising the Fed funds rate from its 0% to 0.25% target.

But as usual, these Fed minutes skirted the real issues...

Proof of Federal Reserve Stock Market Manipulation

Federal Reserve stock market manipulation

The fact that the U.S. banking system is awash with $2.6 trillion in excess reserves points to nothing more than U.S. Federal Reserve stock market manipulation.

For years, the amount of reserves in the banking system was flat, at least relative to the relentless surge Bernanke's tenure brought with it. Excess reserves were at $1.5 billion in February 2006 when Ben Bernanke stepped in as chairman. Under Bernanke, it grew $2.5 trillion.

Here's why that can be nothing more than Fed stock market manipulation...

The Money Illusion: What This Picasso Tells Us About the Dollar

Stock market today

With the purchase of Picasso's <em>Les Femmes d'Alger dans leur appartement</em> (Version O) for $179 million, the world was served up another piece of evidence that money has lost all value.

Some will argue that such a price is justified for such a one-of-a-kind object, but what is really going on is not that the value of art is increasing but that the value of the paper currencies being used to buy it is being destroyed by central banks who print trillions of dollars of money around the clock.

This phenomenon - which the economist Irving Fisher named "the money illusion" - is causing massive inflation in financial assets around the world - stocks, bonds, real estate and yes, art.

Should We Abolish the Federal Reserve?

abolish the federal reserve

Should we abolish the Federal Reserve?

Millions of Americans assume the Fed acts in the nation's best interest and that our nation has always had a Fed.

In fact, neither is true. You see, the Fed's original, century-old purpose no longer applies to modern day markets.

Far worse than that, the Fed's actions actually damage the U.S. economy...

What the Fed Meeting Today Was Really Hiding from Us

fed meeting today

The Fed meeting today (Wednesday) delivered on another humdrum statement soaked in predictable Fed speak.

The decision? The U.S. Federal Reserve's Federal Open Market Committee is considering rate hikes on a meeting-by-meeting basis. Something we already knew.

But it's what the Fed is NOT talking about that really frightens us...

What the Fed Meeting Today Will Ignore

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The Fed meeting today (Tuesday) will adjourn tomorrow with a predictably vague statement about how the U.S. Federal Reserve's Federal Open Market Committee is considering rate hikes on a meeting-by-meeting basis.

But what won't be discussed at the Fed meeting today or tomorrow is that it's that very FOMC that has been setting the stage for the next global financial crisis.

All while allowing the same bad practices to continue unabated and to, ultimately, pave the way for a collapse...

The Housing "Recovery" Is Fabricated Optimism

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When I moved to Sarasota in 1999 I was invited by a prominent local to an "un-wedding wedding" to make new friends in town. I accepted the invitation and, not wanting to display my ignorance, avoided asking the burning question, "What's an un-wedding wedding?"

Inevitably I found out what an un-wedding wedding is. It's a full-blown wedding, only the host isn't actually getting married. They want to get married but aren't, and go through the motions anyway.

The truth about the manipulation of celebratory events to fabricate optimism about a desired future reminds me of the state of housing in America today. Here's why...

CNBC Is Hazardous to Your Financial Health

Financial News

If you want to lose all of your money, you could do worse than tune in to CNBC on a regular basis.

The network is a cheerleader for an overvalued stock market and the Federal Reserve policies that have pumped it up - and which are steering the economy straight into another recession.

Seven years after the financial crisis ripped across the globe, the world is mired in debt. This is particularly worrying since the "Debt Supercycle" that began 30 years ago is now supported only by the largesse of increasingly shaky central banks.

Today the world is buried in more than $100 trillion of debt. Hanging over that is another roughly $700 trillion of derivatives. Is it any wonder many economies can't grow when they have to service all of that debt and face such systemic risk?

Of course, the cheerleaders on CNBC have absolutely no clue about what is going on... and the dangers of this ignorance are too important to ignore.

Yes, there are some thoughtful, experienced journalists working at CNBC like David Faber and Steve Liesman- whose pained expression when enduring his colleagues' hyperbole tells a story in itself. And Rick Santelli continues to point to the dangers of what the Fed is doing.

Unfortunately much of the substance of Mr. Santelli's excellent reporting gets lost in his proclivity for ranting rather than reporting.

But much of the rest of the staff just engages in mindless cheerleading of the markets or soft-pedaling questioning of equally clueless guests...

This "Rising Rate" Play Could Make You a Quick 55%

rising rate play Fed fund rate

According to Bloomberg Business, people collectively waste an hour a day on Facebook debating everything from Kim Kardashian's hair to the now infamous gold/blue dress.

After last Wednesday, I've got to wonder how much time they're going to blow talking about what Fed Chair Janet Yellen said... or didn't.

At the end of the day it doesn't matter.

I say that because one of the most fundamental investing truisms of all is that "money moves to where it's treated best."

Simply put, a rise in interest rates is a sign that money is going to be treated better. It's a capital attractor, not the deterrent hyperactive day traders think it is...

Use This Strategy to Profit Before the Markets Head South

Stock market futures

For the last six months, I have been warning that economic growth is faltering. In November of last year, I predicted that the U.S. economy would experience a "growth scare" in 2015.

This week, we learned that the Atlanta Fed is tracking first quarter GDP growth at a mere 0.3% and that the Federal Reserve's Open Market Committee (FOMC) has significantly downgraded its growth forecast.

Bond yields have plunged and commodity prices have collapsed. Only stocks have failed to figure out that low growth is a recipe for coming disaster.

After Fed Meeting Today, Make Money in These Three Assets

FOMC meeting today

The Federal Open Market Committee (FOMC) meeting today (Wednesday) continued to fuel discussions about when the U.S. Federal Reserve is going to finally raise interest rates.

After all, labor market conditions have cleared up - at least by the Fed's metrics. The economy added 295,000 jobs in February, and the unemployment rate sits at an impressive 5.5%. But the other side of the Fed's dual mandate paints a grimmer picture. The U.S. is in deflation.

The real question is how to invest for deflation. Here's how...

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