Wednesday, July 06, 2016

The Head of the Snake? 
The Poisonous Gap Between 
Paper Wealth & Real Wealth
"Yield-seeking speculation, intentionally encouraged by the Federal Reserve, is perhaps the single most destructive force in the U.S. economy, and in the lives of the American people .. The evidence, if one cares to examine it, is that Fed-induced yield-seeking speculation is not the cure but the cause of economic malaise. Much of America has still not recovered from the violent consequences of the last yield-seeking bubble the Fed engineered. Now the Fed has engineered another, and has drawn nearly every pendulum to an extreme .. The bottom line is this: speculation does not create wealth .. From an investment standpoint, the value of any security is inherent in the long-term stream of cash flows it will deliver to investors over time. Artificially jacking up financial securities through reckless monetary policy doesn’t change the cash flows that those securities will deliver over time; it only converts future expected return into past realized return, leaving nothing but risk on the table for years to come. Central bank intervention is not a benefit to long-term economic prosperity. It is the head of the snake .. We expect $10 trillion of 'paper wealth' to be wiped from the U.S. equity market over the completion of this cycle, because it is not 'wealth' at all."
- John Hussman
LINK HERE to the essay

2 comments:

Anonymous said...

Hillary Clinton Proves The U.S. Is Now A Total Banana Republic

Lynch and Comey both played a role at HSBC.

Loretta Lynch was HSBC’s “prosecutor.” When Holder punted on the HSBC case, Lynch did something highly unusual: she kept the case open on Judge John Gleeson’s docket. Gleeson was openly puzzled by the move, but saw no reason not to go along with the procedure, however odd, since Lynch and HSBC had both agreed to it.

What Judge Gleeson didn’t know was that the HSBC case, having been held open like it was, would be used as a pretext for the DOJ to claim that it couldn’t identify regulators on active cases (like HSBC). That’s exactly what Mythili Raman claimed when asked by Congress in May of 2013. It was a way for her to duck the fact that Breuer had been lying through his teeth, and that all of the DOJ’s financial destabilization experts were, in fact, the banks themselves. Less than a year after that hearing, Raman ended her 17-year DOJ career and went to…. Breuer and Holder’s law firm. See how this works?

This brings us to James Comey. In early 2013, Comey joined HSBC’s board of directors. Only then was Comey’s name floated as a replacement for FBI Director Robert Mueller. By accepting blood money from HSBC, Comey signaled the financial criminals that he’d play ball and ignore the law, as he did today when he focused on intent rather than gross negligence, which is sufficient by itself for indictment and conviction.

Lynch sent the same signal to the financial criminals in charge by entering into a screwy settlement agreement that flummoxed a long-standing judge but that provided cover for Lanny Breuer’s preposterous lies about government regulators assessing the financial impact of criminal prosecutions.

Whenever you want to know how a high-profile case like Clinton’s will turn out, just turn off the TV and throw the New York Times and other mainstream piles of misinformation into the trash can. Just spend 10 minutes or so on google looking at the bios of the key decision makers, and the clues will hit you in the face harder than Earnie Shavers, I promise.
http://investmentresearchdynamics.com/hillary-clinton-proves-the-u-s-is-now-a-total-banana-republic/

Anonymous said...

When I saw the picture I thought it must be an article about Islamic terrorists.

https://www.youtube.com/watch?v=mllMkm8pcVU