The Crisis Goes Up A Gear

By Alasdair Macleod – Re-Blogged From Gold Eagle

Dollar-denominated financial markets appeared to suffer a dramatic change on or about the 23 March. This article examines the possibility that it marks the beginning of the end for the Fed’s dollar.

At this stage of an evolving economic and financial crisis, such thoughts are necessarily speculative. But an imminent banking crisis is now a near certainty, with most global systemically important banks in a weaker position than at the time of the Lehman crisis. US markets appear oblivious to this risk, though the ratings of G-SIBs in other jurisdictions do reflect specific banking risks rather than a systemic one at this stage.

A banking collapse will be a game-changer for financial markets, and we should then worry that the Fed has bound the dollar’s future to their fortunes.

The dollar could fail completely by the end of this year. Against that possibility a reset might be implemented, perhaps by reintroducing the greenback, which is not the same as the Fed’s dollar. Any reset is likely to fail unless the US Government desists from inflationary financing, which requires a radically changed mindset, even harder to imagine in a presidential election year.

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Is A Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill And September 30th D-Day Approaches?

By Jason Hamlin – Re-Blogged From http://www.Gold-Eagle.com

President Obama just had his first veto override of his entire presidency today, as the Senate and House both voted to override his veto of the 9/11 victims bill, Justice Against Sponsors of Terrorism Act (JASTA). As of this moment, the Sept 11 bill is now law.

Intense lobbying by both the Obama Administration and the Saudi government didn’t amount to much in the end, with strong public support leading to a 97-1 veto override vote today. The long defector from the unanimous vote back in May was Sen. Harry Reid (D – NV). The House easily cleared the two-thirds threshold with a 348-77 vote.

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Can The “Rig” Survive An Economic War?

By Bill Holter – Re-Blogged From http://www.Silver-Phoenix500.com

I did not plan to write another public article so soon after the last one. However, today’s topic(s) are very important and very connected in my opinion.  I apologize for the length…but I can’t make this stuff up, I just try to tie it together.  First, we have been hearing the word “rigged” on a daily basis and pertaining to many facets of our life.  We hear the word regarding markets, politics (specifically elections), our rule of law and judicial system, and even when it comes to lawmakers and bribery.

Bill Gross formerly of PIMCO, at one point managed the largest pool of money on the planet. He is no fool.  I would also believe because of his fame, tenure and reputation, he would not lightly claim that markets are “rigged”.  Not only has he claimed this for several months, he now says THE FED “has mastered market manipulation”!  https://finance.yahoo.com/news/bill-gross-fed-mastered-market-115839451.html   Please understand this is a VERY BIG statement on his part as he is (was?) a member of a very exclusive club (and we ain’t in it).  Do you suppose he would risk his reputation and inclusion in “the club” lightly on just a suspicion?  Or do you believe he is a man who firmly believes what he says and does so out of a steadfast conscience?

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The Fed’s In A Bind

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

One can understand the Fed’s frustration over the failure of its interest rate policy…and its desire to escape the zero bound. However, since the FOMC has all but said it will increase rates at its December meeting, events have turned against this course of action. The other major central banks are in easing mode, and the slowdown in China has further undermined both world trade flows and commodity prices. The result has been a strong dollar, which has effectively eliminated any perceived need for higher dollar interest rates. Meanwhile, the US’s non-financial economy remains subdued.

Last August, a similar situation existed, when the FOMC signalled that a rise in the Fed Funds Rate might be announced at its September meeting. Ahead of it, China revalued the dollar by announcing a small devaluation of its own currency, taking the wind out of the Fed’s sails. While the talking heads saw this as a failure of Chinese financial policy, it was nothing of the sort. Given the US was dragging its feet over the yuan’s inclusion in the SDR, it was a salvo in the financial war between the two states, and the Fed found itself in the firing line.

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