The Aluminum Scandal
Goldman Sachs & the Aluminum Scandal
The tide has turned against the bankers and there will not be a rock big enough to hide under. The market is starting to wise up to the commodity game of controlling the warehouses and trading on the same commodities after 31.4 years. I have reported previously that the “club” has been staging manipulations of numerous markets that include currency and commodities. Everything from silver spikes and rhodium to the latest being aluminum. These are often manipulation spikes that run the course of 3 to 9 months. Decades of gathering evidence and recording phone conversations were seized by the receiver who was later hired by Goldman Sachs and made a board member – Alan Cohen.
The whole manipulation scandal has been around for a long-term by the regulators and Congress have protected the bankers giving them the name the “Untouchables”. As the commentator in the following piece jokes – they should take the Got to Jail block out of the Monopoly Game since it never applies to New York unless you compete with them.
Economic Insecurity – The Great Motivator For 2016
The studies have been illustrating that what we face is the collapse of society thanks to the Marxist Agenda that has sent jobs fleeing and it now takes two incomes to support a family rather than one. The great divide between race has diminished and as the once minorities are poised to assume the role of the majority, the poverty among whites has risen sharply thanks to taxation.
The latest studies claim 4 in 5 in US face near-poverty. Children graduating college are finding it harder to find jobs for which the amassed huge student loans. The entire social structure is decaying and this is the source of discontent for the 2016 elections where we will begin to see a rise in third party activity. This is not going to be politics as usual for we are looking at serious change ahead.
HYPERINFLATION – Chicken or the Egg
Iran, North Korea, Argentina, Venezuela, Egypt and Syria have all one thing in common – the collapse in the confidence of their currencies. This is where we will see hyperinflation and this is what it is all about. HYPERINFLATION is by no means related to the quantity of money, it is directly related to the confidence in the currency. This is the chicken or the egg scenario. The hyperinflation takes placeBECAUSE of the decline in trust and confidence in government. It is not the other way around. Governments do not hyperinflate for no reason. They hyperinflate because people lose confidence and they cannot issue bonds for nobody will buy them. This is what we will see in these countries.
Spain Taxing Sunlight
Spain’s Secretary of State for Energy, Alberto Nadal, has signed a draft royal decree taxing energy derived from photoelectric cells. If they can’t derive taxes from utilities, what the hell – tax the sun. Next comes a tax on clean air to breath to live. They already tax food.
Glass-Steagall Returns by Default
QUESTION: If Europe is imploding, general global economy slowing and there is a liquidity crunch, Why in heaven is the Fed going to start taper in september?
Because of political pressure are they going to taper/rise rates and leave the Banks on their own with prop.trading? Has the Fed decided to really clean the system?
Thank you very much.
ANSWER: Proprietary trading is indeed coming to an end. We are seeing that in Europe and the Fed is taking that position. This is essentially the restoration of Glass-Steagall. Central Banks are not in charge of interest rates no matter what you may think. As long as people are willing to buy debt, then rates remain low. When capital begins to shift, rates rise. The flip-side of this is that pension funds are going insolvent. Without fixed income in the 5-8% level, they cannot meet future obligations. The low interest rates have not helped anyone but the banks. They pay 0.5% for 3 years money and want 4% when they lend it out fully secured. Capital shifts to equities because it has to see higher returns. This is why the DOW has been rising. QE has helped only the banks. They failed to pass on the stimulus and ending proprietary trading will be beneficial to the economy for they will have to start leaning to make a profit and that expands the economy whereas proprietary trading destroys the economy when carried out by bankers. The system is being cleaned-up for politically the bankers will not be bailed out this time. Proprietary Trading began 31.4 years ago and it is coming to an end precisely on the cyclical target of PI.
Because of political pressure are they going to taper/rise rates and leave the Banks on their own with prop.trading? Has the Fed decided to really clean the system?
Thank you very much.
ANSWER: Proprietary trading is indeed coming to an end. We are seeing that in Europe and the Fed is taking that position. This is essentially the restoration of Glass-Steagall. Central Banks are not in charge of interest rates no matter what you may think. As long as people are willing to buy debt, then rates remain low. When capital begins to shift, rates rise. The flip-side of this is that pension funds are going insolvent. Without fixed income in the 5-8% level, they cannot meet future obligations. The low interest rates have not helped anyone but the banks. They pay 0.5% for 3 years money and want 4% when they lend it out fully secured. Capital shifts to equities because it has to see higher returns. This is why the DOW has been rising. QE has helped only the banks. They failed to pass on the stimulus and ending proprietary trading will be beneficial to the economy for they will have to start leaning to make a profit and that expands the economy whereas proprietary trading destroys the economy when carried out by bankers. The system is being cleaned-up for politically the bankers will not be bailed out this time. Proprietary Trading began 31.4 years ago and it is coming to an end precisely on the cyclical target of PI.