Think it’s impossible to escape Obamacare? Think again. Laissez Faire Today reader David F. shares how he did it and how you can do it too. Don’t see another doctor, take another pill, or shop around for better medical insurance until you read his story. Read on…
“While I heartily subscribe to your premise of pursuing one’s dream,” one reader, Donald J., wrote, “there are alternate perspectives worth considering.”[We’re listening… go on.]“Some wiseguy once said that life is what happens to you while you’re waiting for something better to come along. Milton put it a little more poetically in one of his […]
“Where were you when it happened?” How many times have we been asked -- and asked -- this question since 2001? Today, Chris Campbell asks us to pose a different question: What can I do today to making Sept. 11 another turning point in my life? And then, of course, taking that first step. Read on…
Want to get rich? Don’t listen to financial “gurus,” says Chris Campbell. In today’s Laissez Faire Today, Chris shares a Zen proverb and shows how understanding it is the only real way to get rich (and live a rich life). Read on…
Ben Franklin once said, “An ounce of prevention is worth a pound of cure.” In today’s Laissez Faire Today, you’ll learn about one FREE website that has the potential to not only keep your family safe – but also open your eyes to what’s happening in your own neighborhood. Chris Campbell has all the details. Read on…
Hundreds of pictures of nude celebrities were leaked onto the Internet last week. The mainstream is blaming twenty-something hackers, but according to Chris Campbell, everyone must’ve already forgotten what we learned about the NSA only a year ago. Read on…
The fireflies along the tidal rivers of Malaysia show "feats of synchrony that occur spontaneously, almost as if nature has an eerie yearning for order." Chris Campbell tells you where else this might occur in the world. Also, new technology may revolutionize the agriculture industry and what we think of as a farm.
Jeff Davis is running for Governor in Hawaii and has an interesting campaign strategy. Also, what motivates hackers is revealed and the findings might surprise you. Finally, Ferguson is discussed in a new light. Chris Campbell has more...
The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...
Americans expatriate because they want to get out of the country. Corporations expatriate for similar reasons. Clem Chambers explains...
Say goodbye to your boring morning commute. New technologies are changing the way people drive their cars. It’s making them safer, more fuel efficient, and could reshape the way America builds its roads and cities. The only thing that could stand in the way...
In a 2009 article, the Huffington Post went into considerable detail about the number of people with PhD degrees in economics employed by the Board of Governors of the Federal Reserve System. This is the government’s branch of the Federal Reserve. It is not one of the 12 regional Federal Reserve banks, all of which […]
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar.The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in […]
When the NSA surveillance news broke last year it sent shockwaves through CERN, the particle physics laboratory in Switzerland. Andy Yen, a PhD student, took to the Young at CERN Facebook group with a simple message: “I am very concerned about the privacy issue, and I was wondering what I could do about it.”There was […]
The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance or the get-rich-quick adventurer. They will die poor.– Jesse Livermore, How to Trade in StocksThe trouble with capitalism’s guardians is that they have no […]
Let’s head back in time…In 2004, a mere decade ago, the US national debt rang the register at $7.4 trillion. That represents “debt per citizen” of over $25,000. You, me, your neighbor, your 4-yr old grandson, you name it and they’re portion of the U.S. debt is $25k.But flash forward to today and you’ll see […]
John Foust, a Democrat running for the 10th congressional seat in Northern Virginia, is — like Gov. Terry McAuliffe and other state Democrats — gung-ho to expand Medicaid. His wife’s position is, shall we say, a bit more nuanced.Foust has slammed his opponent, Republican Del. Barbara Comstock, for her opposition to expansion. He has spoken […]
The midterm election season is upon us, and it’s a tossup whether the Republicans will win the Senate, or if President Obama, seemingly oblivious as conflict flares up around the world, will, through his continuous campaigning, keep Harry Reid in his majority leader seat.The only thing we know for sure is that sociopaths will be […]
Alexander Hamilton was America’s first Secretary of Treasury under President George Washington. When he first entered office in 1789, America was an agricultural nation of just 4 million still broke from its financially costly victory over the British Empire in the Revolutionary War.The states had accumulated relatively massive debts to finance that war, which mostly […]
I was talking with one of my colleagues the other day, and he raised a very interesting question, one that deserves consideration by anyone worried about their digital privacy. He read an article that championed the idea that the more steps one took to protect their privacy by using anonymous Web-browsing tools like Tor, the […]
In the minds of many people around the world, including in the United States, the term “capitalism” carries the idea of unfairness, exploitation, undeserved privilege and power, and immoral profit making. What is often difficult to get people to understand is that this misplaced conception of “capitalism” has nothing to do with real free markets […]
When you type a website address into a browser, you might have noticed that the letters “http” appear at the front. “HTTP” stands for Hypertext Transfer Protocol. In typing a Web address, you are actually sending an HTTP command to transmit that website to you. Hypertext Transfer Protocol is the means by which information is […]
Some people are saying it is just what the doctor ordered. Others are saying that the cure is worse than the disease.The Affordable Care Act? Reengagement in Iraq? Tea Party bullying in the GOP?Not this time. Just as protracted in the corridors of Congress and the White House is the debate over the proposed reform […]
In 2012, money mandarins running the European Union chose stagnation over restructuring. Here’s a consequence of that choice: expectations for a self-sustaining economic recovery keep getting crushed.Two years ago, European Central Bank (ECB) chief Mario Draghi promised to do “whatever it takes” to hold the eurozone together. He bluffed nervous investors into believing in a […]
Picture the scene. It’s 2020. You’re at the checkout in a convenience store with a carton of milk. But you’ve got no cash and you’ve left your cards at home. No problem. You scan your right index finger; the green light flashes. Purchase approved and you leave. Easy.Is this a realistic vision of the future, […]
“In the beginning, all the world was America.” — John Locke“The Garden of Eden was a perfect place,” my friend Manuel explained. “Man had free will. He could live in harmony with nature and God — and everything would be fine. But if he defied God, the stain of original sin would be on his […]
After a week of reckoning about the American oil and gas boom… I’ve got to get something off my chest.I can’t stand it when a coworker takes credit for something I did.Whether it’s a special report I wrote or just a little investing trick I found on my own — if someone takes it and […]
We put in a good-citizen call to the SEC the other day.
“There’s a massive scheme to manipulate stock prices,” we told the friendly agent.
“I have to tell you that your call is being monitored so that we can better serve the public,” he replied.
“Oh, don’t worry about that. The NSA is tapping our call anyway.”
“Are you talking about a specific stock?”
“Oh, no… I’m talking about all of them.”
“You mean a Madoff-style scandal?”
“No… no… This is much, much bigger than the Madoff scandal. We’re talking major manipulation. Intentional. Knowledge aforethought. Pumping up all stock prices. Trillions of dollars.”
“Who is doing this?” the agent asked… a certain tone creeping into his voice. He was starting to suspect he had a lunatic on the line.
“The Fed, of course.”
“Uh… thank you…”
“You gotta go after those bastards.”
“Uh… yes… we’ll look into it.”
“OK, thanks. I just thought you should know.”
Wall Street shook the sleep from its head and rubbed its eyes last week. Investors shrugged off the bad news from Japan and Europe.
As for the bad news from the U.S. itself… it hardly mattered. Yes, the economy was weaker than had been thought — with the worst jobs report in two years. No, there was not much good news coming from corporate earnings, either.
But hey — asset values no longer depend on the performance of the Main Street economy. This is a manipulated market. The Dow rose more than 100 points, reversing a worrying trend.
Since the start of the year, U.S. stocks have been selling off. But last Tuesday, investors found their footings… and recovered their delusions…
Yes! The only thing that matters is that the Fed is on the case. Stocks are being manipulated to the upside. Willfully. Knowingly. Intentionally.
Janet Yellen can talk about tapering quantitative easing (QE). But she can’t do it. The economy needs more support from the Fed. But the Fed doesn’t put more money into ordinary household budgets. You can see that just by looking at jobs, wages, or consumer prices. The U.S. CPI is barely going up at all.
That’s because the Fed’s intervention stays in the financial economy — where the EZ money and credit as a result of ZIRP and QE feeds directly into stock, bond and real estate markets.
Jimmying and Jiving
Look at a stock chart… identify the episodes of QE… and you will see that the Fed’s QE = U.S. stock market gains. Liquidity mainly drives asset prices, not the real economy.
Asset prices do not reflect the genuine “facts on the ground” for businesses or consumers. They are jimmied and jived by the authorities.
Last week, we noted that stocks, bonds and real estate have added $21 trillion to the nation’s balance sheets since 2009. But at the rate the economy is adding real wealth, it will take 70 years to catch up with those asset prices. Stocks, bonds, and real estate are all counting on growth that will never happen. Or at least it won’t happen soon enough to justify such high prices.
What made stocks go up so much last year was that the Fed made a lot of liquidity available — while the federal government used less of it than it had the year before. This left a lot of excess liquidity wandering around looking for a home.
What did it find? Stocks and housing!
Most likely, this will continue. Stick with me now…
1. The feds think they can manage the economy
2. They see recessions and/or falling asset prices as problems to be fixed
3. They think they can prevent these things with more QE
On the evidence… they’re right!
Without Fed support, the economy would probably be in recession. U.S. GDP went up about $350 billion last year. The Fed offset it with $1.2 trillion worth of QE. Even so, the economy only limps along. Without it, the economy slumps. The Fed can’t tolerate a slump. So, it has to continue with QE.
Meanwhile, the federal government is absorbing $400 billion less capital this year than last as a result of lower budget deficits. This leaves a lot of excess stray kittens in need of adoption. Who will take them in?
Stocks! Real estate! Yes, dear reader, we will most likely see more gains in 2014.
This is blatant manipulation of the markets. The Fed is open about it. Even proud of it.
C’mon, SEC, you put the petty, two-bit manipulators in jail. A few million here and there. BFD! How about the big boys? How about a trillion-dollar conspiracy to raise stock prices?
Arrest Janet Yellen! We want to see her do the perp walk.
— Bill Bonner
This article originally appeared here.