How The Fed and The U.S. Punish Their Enemies and Their Allies

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• published: 28 Jun 2014
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See for more information on this podcast http://smaulgld.com/fed-united-states-punish-enemies-allie/ Podcast Summary: 0:00-3:47 Introduction The Fed on GDP, Inflation and The Economy Is the Fed Just Applying Palliative Care to the Economy or Are They Delusions Doctors 3:47-8:36 discussion of the Fed President statements on the economy. All are projecting an accelerating economy with lower unemployment, and shrugging off the first quarter GDP print coming in at a negative 2.9% and higher consumer prices as "noise". Recent economic data has not been much of an improvement and consumer price inflation is increasing. It seems the Fed is willing to place the blame on the disastrous first quarter GDP entirely on the weather. Consumer spending in the second quarter is not picking up and 65-70% of the GDP is consumer spending, so it's hard to see how the second quarter GDP is going to show a massive improvement- going from negative 2.9% to a positive 2-3%. Main Stream Media Believes the Recovery Narrative 8:36-10:59 discussion how the main stream media supports the recovery narrative, citing for example lower initial jobless claims as evidence of an improving labor market- even though there is not a corresponding increase in hiring. Misinterpretation of the Initial Jobless Claims Data How Artificially Low Interest Rates Prevent Hiring 10:59-13:00 Discussion of how artificially low interest rates harm hiring. Discussion of the Fed's view on inflation. Increase in Sub Prime Credit Card and Car Lending 13:00-19:00 discussion of sub prime credit card and automotive lending. Spending borrowed money is not good for the economy, especially on depreciating consumer goods and cars or even a college degree with little or no return on investment. How To Punish Your Enemies AND Your Allies Four Troubling Events 1. U.S. Fines France's Bank Paribas $9 Billion for Dealing with Iran 19:00-19:55 discussion of recent heavy handed moves by the U.S. government and the Federal Reserve designed to project their authority in order to preserve confidence in those institutions and the dollar. Discussion of the $9 billion fine the U.S. is laying on France' Bank Paribas for dealing with Iran, who doesn't do business in the U.S. dollar. 2. Germany Decides it No Longer Wants Its Gold Back From the United States 19:55-21:28 discussion of the German gold repatriation request, its denial and Germany getting comfortable with not getting it back. Germany's change of position claiming they no longer want their gold back and that they are happy the U.S. is taking good care of its gold seems like it was given under duress. Germanys gold has probably gone where the Lois Lerner and the IRS requested emails have gone. 3. No Explanation as to Who in Belgium is Buying U.S. Treasuries in the Amounts that The Fed Has Stopped Buying Them. 21:28-22:35 Discussion of how are interest rates not rising when the Fed is no longer buying 60-90% of the newly issued U.S. Treasuries. There is a new mystery massive U.S. Treasury buyer out of Belgium but no one is asking the Fed or the Treasury who it might be. 4. IRS Emails, Hard Drives and Back Up Tapes Go Missing 22:35-24:50- Discussion of the missing IRS emails. The Fed also says the economy is fine when it is not! 24:50-29:00 Excuses that U.S. officials make are not allowed for private citizens. The IRS has a multi billion dollar IT budget, it should be less likely that they would lose documents than a private citizen. Discussion of how companies have their stock prices boosted by share buy backs and government sovereign funds purchasing shares but their fundamentals are weak. Discussion of the comment sections to news stories on the economy. The main stream media story will tout a "recovery" but the comments will refute it. Naked Short Selling of Gold and Silver to Suppress their Prices 29:00-29:40 discussion of naked short selling of precious metal to suppress their prices. Home Prices and Interest Rates and Housing Market Manipulation 29:40-30:48 home prices are flat while sales are down even though interest rates are lower. Discussion of how lower credit standards are coming to try and get further gains out of the housing bubble. Second Quarter GDP Predictions 30:48-34:00 discussion of what the 2nd quarter GDP might be and the spin that it will be given. Washington D.C. Metro Housing Market 34:00-42:58 discussion of the New York, San Francisco and Washington D.C. metro area housing markets. The Fed and Germany's Gold and the IRS Missing Emails Discussed Again 42:58-48:55 how the Central banks ultimately put aside their differences so they can carry on manipulating markets and keep their credibility. Discussion of the Fed and European Central Bank's coordination of negative interest rates. How the Fed sets the benchmarks of inflation and employment and meets those tests! 48:55 -- Credit tip of the week