My #1 source of financial news is Bill Murphy’s Le Metropole Cafe. It is subscription only. You can sign up for a free trial to try it. Just understanding the charts in Adrian Douglas’ piece this morning are worth the price, not to mention Bill’s uproarious daily column, Midas.
Here is Bill’s e-mail announcing the Douglas piece this Monday morning:
Served at The Dos Passos Table:
CRISIS AT THE FED
By Adrian Douglas“The upcoming meeting of the FOMC on June 28-29, 2006 is an event that is like no other FOMC in the last 24 years. Make no mistake about it, the FED is in crisis. The crisis is best summed up by the following graph of the yield on the 10 year Treasury.”
This is the name of the gold game at the moment.
All the best,
Bill Murphy
Le Patron
www.LeMetropoleCafe.comTO JOIN OR RENEW:
www.lemetropolecafe.com/joinrenew.cfm
In a recent Midas, Bill linked to the following piece from the Financial Times and brilliantly pointed out that discrepanices in American’s accounts support what I had said at Gold Rush 21 about the possibility of trillions missing from the US government being financed with mortgage securiities and other securities fraud.
Discrepancies in America’s accounts hide a black hole
By Daniel GrosThe global financial system seems to have a black hole at its centre. Over the last two decades, US residents have sold a total of about $5,500bn worth of IOUs to foreigners, yet the officially recorded net investment position of the US has deteriorated only by a little more than half of this amount ($2,800bn). The US capital market seems to have acted like a black hole for investors from the rest of world in which $2,700bn vanished from sight – or at least from the official statistics.
Because of the interest in trillions missing from the US government, including money reported missing in Iraq, we have updated the Solari Missing Money page.
A tapeworm economy engorges more and more resources into itself. One of the ways the Tapeworm has done this is with the greatest debt bubble in history — consumer debt, mortgage debt, small business and government debt — all feeding subsidized corporate wealth. The problem is that the corporations and the first world life-style as currently configured are non-sustainable. They need more subsidy — whether draining taxpayers or the environment — and the game is nearing another round of parastite exhaustion.
Click here for Missing Money Articles & Documents resources page…
There is a war going on — over interest rates and the price of gold vs fiat currency. It is the same war. It was reported recently that the Bank of England policy maker pushing for higher interest rates died after a short illness. It makes one wonder whether the illness was hedge fund flu — and what the relationship between central banks and hedge funds these days is really all about.
Bank of England Policymaker Walton Dies
LONDON (Reuters), Jun 22, 2006
One of the finest teachers of “how money works” is Robert Kiyosak, the author of Rich Dad, Poor Dad. His recent column is worth reading. Here is an excerpt (quote):
“Beware of What’s Coming
In conclusion, I would say that what’s good for GM and for America is to treat workers and investors fairly. Tell us the truth. Admit incompetence. Stop pretending. Stop the fuzzy math. Of course, telling the truth will mean being thrown out of office, but that might be a good start for an economic recovery.
I do not believe what our leaders are saying; I do believe they will protect their own self-interests. That’s why I’m long on my own business, real estate, oil, gold, and silver. I’m out of blue chips — I’m not saying these companies are dishonest, just that that I don’t trust them and their fuzzy math.
I’m very concerned about our future — for you, me, and our families — because what’s good for GM and America is coming. So invest wisely.”
Source: What Ails GM and America?
by Robert Kiyosaki, Yahoo Finance, May 16, 2006 (page 2)
Two Solari Audio Seminars that will help you think through what the risk of rising interest rates means to you are:
And for those of you who want to understand what is really going on in Iraq, and the deeper relationship between the NeoCons and the Establishment, a great piece from Greg Palast:
Was the Invasion of Iraq A Jewish Conspiracy?
by Greg Palast, Tikkun Magazine JULY/AUGUST 2006 (June 26th)
What Greg does not discuss is who are the investors who own all the equity in the companies who are controlling the game.
That of course, would lead us back into all the questions regarding the various investment syndicates involved, their ethnic affiliations and the DNA of greed. Something for next week.
Suffice it to say, the Establishment can not announce it is going to Iraq to steal their oil because it wants and needs it. Like the Tapeworm, it needs a chemical to inject into the body politic to make the action appear desirable. That is where the NeCon’s rhetoric comes in combined with lots and lots of unaccountable missing money. Of course, you have to print the money and issue more securities, and so that leads us back to the interest rate problem and the gold problem and the global warming problem.
And around and around the Tapeworm economy goes, needing ever more subsidy for a negative return on investment economy.
Until we convert to a positive return on investment economy, it will just keep getting worse. The opportunity for those willing to stake out a positive return on investment economy will continue to grow.
It is that simple.
