Yellen Tells Congress Negative Interest Rates Are Possible
Reuters has reported that Yellen told a House of Representatives committee when testifying before Congress: “Potentially anything – including negative interest rates – would be on the table. But we would have to study carefully how they would work here in the U.S. context.”
Yellen
may have been placating Congress, for negative rates would wipe out the
elderly entirely. They have failed to work in Europe in the slightest.
Negative interest rates are not working in Europe. Even in Switzerland, hoarding cash is
becoming a national pastime. This entire idea demonstrates that those
who would be king do not understand how the economy even functions.
We
are back to Thomas Paine’s “Common Sense” that inspired the American
Revolution. He explained that government was evil because it operates
from a NEGATIVE perspective always to PUNISH the
people. This is the only way those in government ever perceive their
power – it is always to demand and punish, never to work with society to
comprehend what the problem might be.
Taxes are too high and the standard of living has declined. Those in power will ONLY raise
taxes because they are incapable of reform. The year 2017 will cross
the Rubicon. The inflation they are desperately trying to create will
arrive, but not in the form they desire.
Proprietary Trading of Banks Coming to an End?
QUESTION: Marty, I heard that banks are actually shutting down proprietary trading. Is that true? Does that mean the manipulations are coming to an end?
Cheers
FP
ANSWER: Yes. Many banks are getting out of the business entirely, especially the Europeans. They are not even making markets in currency. The fines over short-term manipulations have been huge, but the net result is the collapse in liquidity. This promises to increase volatility in the years ahead. We ourselves are finding many big corporates are turning to us realizing that taking advice from those making markets was like asking a drug dealer if you should be using drugs. Likewise, they will not use advisers without real world experience. So that leaves out academics and those with soap-boxes.
It is fascinating that from the very day that PhiBro took over Salomon Brothers, marking the beginning of the takeover of Wall Street by the commodity crowd raised on market manipulations, our model picked a turning point that landed on TARP to the day.
The age of bank manipulations has seen its best days. The cycle has shifted and there will still be some diehards who are only investment banks that cannot make a living otherwise since they are not real bankers. Nevertheless, the trend has changed. Their manipulations are setting up companies and countries on inside deals rather than manipulating an individual market. They are finding it more and more difficult to manipulate as liquidity implodes. The closure of trading floors is altering the game entirely as the older traders just leave the markets.
Nothing but nothing can be sustained without change.
Britain to Ban Any Encryption That Prevents the Taxman From Exposing British Citizens
Britain is going completely insane. They are passing a law that requires companies to provide unencrypted communications to the government. This may be a major reason why Britain looks quite bearish long-term. It means that Apple would not be able to sell its new phones in Britain. It may be wise for the companies to blacklist Britain and then let the public apply pressure on the government.
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