The Economy Is Suffocating, Major Adjustment Period Coming

Wolf Richter on the X22 Report. Re-Blogged From Wolf Street

“The debt needs to blow up. It needs to go way. There is too much debt.”

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Property Bubble In Ireland Developing Again

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Budget 2017: “Good Work To Halt Second Property Crash Undone In A Day”

David McWilliams has pointed out in two of his most recent articles how Budget 2017 and the latest mortgage tax grant risk creating a “second property crash”:

“We are faced with similar concerns on the horizon now. Unlike 2008, when this country went bust, or in 2012, when the euro as a currency was in real danger of falling apart, there is no serious internal threat. In 2012, the world’s central bankers cutting interest rates to zero prevented the disintegration of the euro. This may have saved the currency then, but it means that today central bankers have no ammunition left if there is another downturn. Interest rates are as low as they can go.

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Will Ireland Be First Country In World To See Bail-in Regime?

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Deposit bail-in risks are slowly being realised in Ireland, after it emerged overnight that FBD, one of Ireland’s largest insurance companies, have been moving cash out of Irish bank deposits and into bonds.

Revelations regarding deposit bail-in risks came in the wake of warnings of a new property crash centered on the housing market in Ireland. The former deputy governor of the Central Bank warned in an op-ed in a leading international financial publication, Project Syndicate, that Ireland is at risk of another housing market crash.

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The Fed’s Academic-Based Theories Are Creating A BRUTAL Economic Reality

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

One of the most frustrating aspects of today’s financial system is the fact that the Fed is being lead by lifelong academics with no real world banking or business experience.

Consider the cases of Ben Bernanke and Janet Yellen. Neither of these individuals has ever created a job based on generating sales of any kind. Neither of them has ever had to make payroll. Neither of them has ever run a business. What are economic realities for business owners (e.g. operating costs, capital and profits) are just abstract concepts for Bernanke and Yellen.

Moreover, there is a particular problem with academic economists. That problem is that a major percentage of their “research” is total bunk made up in order to make tenure.

This is not our opinion… it is fact based on research published by the Fed itself.

According to a paper published by researchers from THE FEDERAL RESERVE BOARD, it was not possible to replicate even HALF of the results found in economics papers EVEN WITH THE ASSISTANCE OF THE INDIVIDUALS WHO WROTE THE PAPER.

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Price-Fixing at the Fed: Global Implosion Is Served?

By Ed Bugos – Re-Blogged From The Dollar Vigilante

The Fed has not raised rates for over seven years now – an unheard of amount of time. It has practically abolished interest rates for the first time ever. The distortions that have been built into the larger marketplace are coiled now like a spring, ready to unwind with a fantastically destructive impact.

How did we get to this point anyway? Why do people accept the idea that a handful of men and women dining on fine food in a series of expensive hotel suites and meeting rooms have the power and knowledge to “fix” the price of credit, manipulate the amount of money, and regulate the value of the world’s reserve currency? Why should anyone have this power?

What should be evident is that the Fed’s central bankers are not free to make an unimpeded decision. They are haunted by the mistakes of the past. Low rates of the late 1990s led to the tech crash of 2001. Low sustained rates of the early and mid 2000s led to the subprime crash of 2008 that echoed around the world.

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Fed ‘One and Done’ is a Wall Street Fantasy

By Michael Pento – Re-Blogged From CNBC

One of the current myths promulgated by Wall Street is that the Federal Reserve will raise rates once this year, breathe a sigh of relief, and be done until the “12th of never.” But those who are familiar with our central bank’s history are aware that the Federal Open Market Committee has never tightened the federal-funds rate just once. A quarter-point hiking cycle has no historical basis and is just wishful Wall Street thinking.

In the spring of 1988, fearing a rise in core inflation, the Fed went on a tightening cycle that lasted from April 1988 to March 1989. During that time, the fed-funds rate increased more than 300 basis points (3 percentage points). This episode was followed by a recession beginning in 1990, suggesting that the corrective policy actions may have intensified a weakening economy, and that the Fed is prone to being economically tone deaf.

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Bubbles Never Pop Painlessly

By Michael Pento – Re-Bloged From http://www.Goldd-Eagle.com

Investors are obsessed over predicting the timing of the Fed’s first interest rate hike. Will it raise the Fed Funds rate in September, or wait until next year? But it is far more important to get a grasp on the pace of rate hikes. Will it be a one and done move, or does this mark the beginning of an incremental tightening cycle?  Those of us who are not in the inner circle are forced to only speculate.

But one thing is certain: If history is any guide, whatever they do the Fed will get it wrong.  Most market commentators place unfounded belief in the Fed’s acumen. But the truth is: I wouldn’t trust the Fed to tell me what the weather is going to do in the next 30 seconds–even if they were looking out the window.

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