Jim’s Mailbox

Posted at 2:30 PM (CST) by & filed under Jim's Mailbox.

Courtesy of Dave.

Jim

The Fed’s Controlled Demolition Of The Economy Is Almost Complete
March 28, 2019

Authored by Brandon Smith via Alt-Market.com,

The Federal Reserve is an often misunderstood entity, not only in the mainstream, but also in alternative economic circles. There is this ever pervasive fantasy on both sides of the divide that the central bank actually “cares” about forever protecting the US economy, or at least propping up the US economy in an endless game of “kick the can”. While this might be true at times, it is not true ALL the time. Things change, agendas change, and sometimes the Fed’s goal is not to maintain the economy, but to destroy it.

The delusion that the Fed is seeking to kick the can is highly present today after the latest Fed meeting in which the central bank indicated there would be a pause in interest rate hikes in 2019. As I have noted in numerous articles over the past year, the mainstream media and the Fed have made interest rates the focus of every economic discussion, and I believe this was quite deliberate. In the meantime, the Fed balance sheet and its strange relationship to the stock market bubble is mostly ignored.

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Jim,

Pompeo removes any doubt what the US Middle East policy is all about.

Dave

Now It’s Official: God, Not the Russians, Elected Trump
March 28, 2019

. . .

 

Given the awfulness of the Pompeo remarks, one might wonder where is the condemnation of them on the editorial pages of the New York Times or the Washington Post? Surely there should be a demand for his resignation as he is suggesting that the United States should be fighting a divinely mandated war against Iran to protect Israel which is, for what it’s worth, not actually threatened by the Iranians while even the Pentagon has declared Iran to be a “rational actor” in foreign policy. But one hears mostly silence. The Washington Establishment clearly believes that one can and should condemn Russia without any evidence, but one cannot investigate or even challenge a Secretary of State who believes that he is receiving his guidance directly from God.

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Jim,

You have pointed out how important this statement is.

Dave

Ireland and EU Countries Must Seek ECB Approval to Manage Gold Reserves – Draghi
March 29, 2019

by Francesco Canepa on Reuters

. . .

The ECB and its President Mario Draghi realise gold is very important in terms of protecting the euro from collapsing both in terms of nations reverting to their national currencies but also in terms of the euro, dollar, pound and other fiat currencies collapsing in value, if the public loses faith in them.

The ECB President said of gold in October 2013 that gold is a “reserve of safety” that “gives you a value-protection against fluctuations against the dollar.” Draghi told an open forum at Harvard’s Kennedy School of Government, why central banks want gold and what value it offers. He said that there were “several reasons” to own gold including “risk diversification.”

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Bill,

I saw this and wanted to keep readers up on this important lawsuit.

Dave

Bombshell Lawsuit Claims FBI Knowingly Hid Evidence from Congress of Explosives Used on 9/11
March 27, 2019

In yet another major move from the great folks over at the Lawyers’ Committee for 9/11 Inquiry, Architects & Engineers for 9/11 Truth, and 9/11 victim family members Robert McIlvaine and Barbara Krukowski-Rastelli, a joint federal lawsuit has been filed to assess any evidence the FBI may have known about that contributed to the destruction of the towers on 9/11 which they may have kept from Congress.

The complaint cites the failure of the FBI and its 9/11 Review Commission to assess key 9/11-related evidence that the FBI can be shown to have had, or been aware of, regarding:

  1. the use of pre-placed explosives to destroy World Trade Center Buildings, 1, 2, and 7;
  2. the arrest and investigation of the “High Fivers” observed photographing and celebrating the attacks on the World Trade Center on 9/11;
  3. terrorist financing related the reported Saudi support for the 9/11 hijackers;
  4. recovered plane parts, including serial numbers from all three crash locations;
  5. video from cameras mounted inside and outside the Pentagon; and
  6. cell phone communications from passengers aboard airplanes.

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Jim,

This spells trouble ahead.

Dave

New Kind Of Deflation Impels The Great Bond Rally
March 28, 2019

A different kind of deflation is worrying the world’s central banks. The Federal Reserve began to back off planned increases in interest rates and reductions in portfolio holdings at the end of December, when equity and commodity markets crashed together.

A full retreat by the Fed as well as the European Central Bank arrested the fall in stock and commodity prices, but inflation expectations continue to fall in all major markets.

That’s a different kind of deflation, brought on by buyer resistance to price increases. We saw that vividly in the February report on the US labor market, where employers simply stopped hiring in sectors where wages had risen the most. We observe it in the housing market, where buyers are pushing back against higher prices, and (once again) in the market for wireless telephone service.

The worst performer on the S&P 100 today is Verizon, down more than 4% on investor fears that the wireless provider won’t be able to hold its pricing structure after T-Mobile merges with Sprint. A combination of technological change, market disruption and tight consumer budgets has steepened demand curves more or less across the board.

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Jim,

Just the facts on the ground.

Dave

Huawei Mocks US ‘Loser’s Attitude’
March 29, 2019

The face of China’s rise to compete internationally in high-technology industries had 100 billion reasons to brag on Friday, touting a huge revenue breakthrough, while at the same time taking shots at the US government.

Chinese telecommunications equipment and consumer electronics maker Huawei announced that its revenue exceeded $105 billion, a first for the company that is now on par with the likes of Microsoft and Google in that category.

The milestone was reached thanks to soaring sales of its smartphones – despite the fact that the devices are effectively locked out of the US market.

The company’s rotating chairman, Guo Ping, characterized US attempts to paint Huawei as an arm of the Chinese government as a desperate effort to hold them down.

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Jim,

You brought up this very important point.

Dave

Trump Owns the Economy Now, for Better or Worse
March 28, 2019

WASHINGTON — President Trump is getting exactly what he wants on the economy, but it may not last.

The Federal Reserve has abruptly stopped its march toward higher interest rates, as Mr. Trump demanded. The tax cuts he signed in late 2017 are in full swing. His attempt to rewrite the global rules of trade are underway, and he proclaims himself happy with the array of new tariffs he has imposed. His recent comments suggest he is unconcerned about slowdowns in China and Europe, which he considers economic rivals.

But while Mr. Trump points with pride to last year’s economic growth and promises even faster growth to come, there are signs that his most dependable talking point is eroding. On Thursday, the Commerce Department issued a downward revision of its estimates for economic growth in the fourth quarter, pushing one measure of the full year’s growth down as well.

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