Weekly News Wrap-Up 3.15.13

5By Greg Hunter’s USAWatchdog.com  New highs day after day on the Dow!!  The economy is fixed, right?  Wrong!!  I have been watching a lot of the business and mainstream media channels, and there is hardly a mention of the $85 billion a month the Fed is printing out of thin air to buy sour mortgage debt from the big banks and Treasury bonds from the U.S. government.  This is $1 trillion a year!!!  The Dow is going up, in part, because the big banks are buying their own stock back.  Where are they getting the money?  $40 billion a month is being used to buy that sour mortgage debt.  That wouldn’t be the source of the cash to buy bank stocks would it?   This Fed money printing is propping up the economy, and if it were taken away, the whole thing would crash.  Why do I say that?  If the Democrats really don’t want to cut spending this year, then why don’t they ask the Fed to divert just two months of the bank bailout to stop the cuts?  Why not?  Again, the economy would implode because interest rates would spike!  Here’s another question I have that the Fed chief should have been asked.  To which banks is the Fed paying the $40 billion a month to remove sour mortgage debt?  They can’t answer that because they fear a run on those banks.   I have to hand it to the New York Post for finally calling BS on the BS with this headline from earlier this week.  “A Bull ($#!T) Market.”   Anybody trading this should know this cannot and will not last.  Stock market and corporate profits are both up a nearly identical 128% since the Fed started its money printing extravaganza in March of 2009.  I am sure that just a coincidence.  President Obama is warning that Iran is a year away from developing a nuclear weapon.  He says “. . . we don’t want to cut it too close.”   So, is war with Iran coming within a year?   This is serious talk from the President, and I do not think he’s bluffing.  War with Iran would be a global disaster no matter who fires first.   Democratic Senator Patty Murray has a new budget that expands spending by a whopping 62% over the next 10 years!  Her budget spends another $162 billion the next year alone.  What part of unsustainable do these folks not get?  I think the Democrats and Republicans will remain deadlocked and continue the “blame game theater” until the economy implodes altogether.  You think we can continue borrowing and printing money to infinity?  The world is holding the “Global Sustainable Currency Summit” this September in China.  The theme is “From Money Chaos to Global Currency.”  Where do you think this will leave the U.S. dollar as the world’s reserve currency?  We simply cannot continue to print money to buy hard goods from the world.  Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up.

Comments
  1. Dwain

    The Dow, going through the roof without volume to uphold it, signals distraction and desperation. Why is the fed desperate and what are they hiding? Coupled with the propaganda ministry, it appears they are making a last ditch bait and switch effort to propagate a positive slant then confiscate every ounce of wealth possible before they collapse the system. There is not much time. Protect and prepare yourselves.

    • Greg

      Dwain,
      Good point man!

  2. Bill Schitt

    Hahaha – good one – a bull S**t market! Manipulation, lies, deception, cheap money, false recovery, and a non-manufacturing economy…yes, it all spells “bull s**t market”! Once I was proud to be an American, but our government is making Nazi Germany look tame.

  3. Ambrose

    Greg,

    Another great weekly wrap-up! I hate it when you are right again and again.

    Last week MSM reported good news about the economy everywhere. Stock prices and home prices are rising. The Federal Reserve reported that the nation’s household wealth regains $16 Trillion lost during recession.

    “Household Wealth Regains $16 Trillion Lost During Recession, Nears Peak”
    (http://www.huffingtonpost.com/2013/03/07/household-wealth-recession_n_2829980.html)

    However, as pointed out by the Huffington Post article, “…Roughly 80 percent of stocks are held by the richest 10 percent of households. For the past five years, middle-class Americans have sold stocks and missed out on much of the rebound. During 2012, Americans dumped $204 billion in stocks, the Fed’s report showed.”

    As stock prices go up, the rich gets richer. The wealth made in Wall Street stays with Big Banks and Big Corporations – the Main Street benefits very little in so called “Economic Boom”. Nevertheless an illusional economic boom filled with bubbles is not sustainable and it could turn into a bust in seconds.

    You might not realize that you have already mentioned to us the new world’s reserve currency – gold! More and more countries worry about the future of the U.S. Dollars and Euros and they are increasing their gold reserves.

    Ambrose

    • Greg

      Thank you Ambrose and Mike for the comments and support!!

  4. Mike Preslar

    Thanks Greg, for another clear view.

  5. art barnes

    Hats off to the New York Post, I think I might start reading the MSM again! Greg, how can this economic problem be fixed, fiat money has a terminal condition called deficits, severe austerity measures in order to turn it around would now cost the last part of the economic engine to fail, and, as you said, if the FED stops printing it collapses as well. Simply stated, there is no way out, the economic cancer has spread. Only war will possibly be a game changer and that is where we are headed, a two front war with Korea & Iran and who knows who else as its heats up.

    Last rant, “From Money Chaos to Global Currency”, sounds like Bible predictions of a future one world government and the mark of the beast.

    • Greg

      Art,
      Rant all you want!

  6. Mac

    Banks buying Banks stocks. In crowd, mafia of today. Use taxpayer money, too.
    Congress is following orders. 2 parties? Ha, ha.

  7. Baja Bryan

    Greg I believe it’s high time we initiate some competency testing across the board for any and all elected officials regardless of political affiliation. Logical, reason and objectivity are nonexistent these days and to be candid we have all allowed this to happen. To say I’m disgusted would be an understatement. People may not want to hear and know the truth although we can all agree that doing the same non productive things over and over is pure unadulterated insanity. Wake up folks, the sign post ahead no longer says next stop Twilight Zone, it’s says next stop Apocalyptic Crash.

  8. AndyB

    Greg: you briefly mention the potential of a war with Iran; yes very serious problem, but how about the war on the American people? The decimation of the middle class, the abrogation of the Bill of Rights; the subversion and perversion of the Rule of Law to benefit only the connected; the militarization of DHS (WTF do they need 1 billion hollow point bullets for?)and local police departments; the insidious regulations to stifle real business growth; and the piece de resistance (trumpets): the Affordable Care Act which is far from affordable, and a totalitarian wet dream.

    • Greg

      Andy B,
      I guess we are facing a war on two fronts. Germany did that and lost.

      • droidX-G

        The Germans didnt have nukes. As crazy as our current govt is, dont bet against the US using them

  9. Charles H.

    Hey Greg,

    A quote from the movie Blade Runner – “You know the score pal: if you’re not cop – you’re little people!” Evidently, government figures on being the Big Dog and only-game-in-town. Sure, other countries will call BS: but the US will push back and say something like ‘yeah, but our military, and technology, and nuclear armament ISN’T BS’. Nasty, juvenile, and irresponsible bullies in Washington. At some point – America will have to be co-opted into a NWO, One World Government: before it can be thrown under the bus.

    • Greg

      Charles H.,
      How appropriate for this weeks Wrap-Up!!

  10. DAVE

    Hi Greg
    Great reporting this week .Thanks.In a reply to Charles. The best movie quote comes from (Shooter) where a corrupt state senator says, there is no Sunni’s or Shia,there is just the haves and the have not’s.Even in the real world ,so true
    Dave

  11. amber

    Hi Greg,
    I just started reading your website after I listened to you on Coast to Coast with John Wells. You have tons of great info and I thank you for bringing this all into the light. My question for you is, what can I do or what should I be doing? Help me out here, I’m concerned for myself and my family.
    Thanks,
    Amber

    • Greg

      Amber,
      I do not know your financial situation but you need to prepare for inflation and maybe civil unrest. That is a very short answer to a very long question.

  12. Shawn in San Jose

    Nice weekly wrap-up. I like the politcal cartoon. Although I do like to add one point. Yes, children will inherit our debt problems but its important to remember. That people like me who are around 40 have inherited and the reckless spending of previous generations in addition to my generation. We all overlap a fair amount no?

    The current 16T in debt is the result of the ww2 gen, baby boomers, and gen x all expecting more govt than they are willing to pay for!

    • charlie

      The current 16T in debt is the result of the ww2 gen, baby boomers, and gen x all expecting more govt than they are willing to pay for

      Don’t forget the waste of money on endless wars and all the wasted foreign aid over the past 50 years.

  13. Liquid Motion

    Greg,

    Its still AATF (all about the fed). Nothing has changed.

    No matter what the analysis is…who controls the FED…controls the markets (think rates, stocks, currencies, PM’s). Markets are manufactured to ensure control is maintained. Fiat remains crucial to that game book. The market IS absolutely BS in the context in which we see it. But re-visit that in the eyes of the FED.
    Inflated stocks imply greater leverage to the key corporates offering numerous dimensions for them. Those key corporates include the BANKS.
    Given the FED is not a Government instrumentality, its primary function is to ensure continuity of the monetary system (banks are the conduit for a functioning economy…therefore are highly exposed to extreme adverse as well as favorable systemic conditions).It may appear the FED cares about the mandated Unemployment…it clearly doesn’t.

    Who is the FED taking instruction from….and what are the motives ?
    If you join the dots you will see the truth..The Banks run the FED…therefore the world.
    Governments exists to only administer policy…they may give appearances of kicking and screaming all for the sake of exerting power or influence or to represent public interest/welfare (or in the least giving the impression of it).

    No..my friend …..sadly…we are all in the game..(like it or not). The game is controlled (fixed).

    Oh on the matter of War…they are contructs of finance….without a CB able to print ad infinitum…there would be no wars. BHO is a puppet for the Bankers. Why target IRAN ? Why Iraq ?
    There are some valuable resources there in the ME….including real estate.

    Recommended reading for all….”The Creature from Jekyll Island” – G. Edward Griffin …it is the definitive and I would say compulsory reading for all who want to understand why the world is exposed to continuous wars, boom-bust cycles, inflation, prosperity and depressions.

    The weekend is upon us….I will sit tight ….and stay right.

  14. Paul

    Greg,

    Loved your wrap-up but what really needs to be addressed is Bernanke’s answer to this question: how will you ease out of your current policies? Examining the possible answers to this question is critical. Heck, I’m open-minded enough to see if it passes the sniff test.

    I’ve come across these answers the question: 1. Don’t know, we are in unchartered territory. 2. Once the economy is boosted with low interest rates, the housing market will pick up, as will other parts of the economy. Once this happens, tax receipts return, we pay off our debts, interest rates rise, and we are off to a bright future. 3. We get into a war, as has occurred in the past, and the economy turns around as the defense industry leads the way.

    I really need to have the answer to the above. Also:
    complaining about our present situation with pro-gold and anti-government spending arguments is interesting reading and listening, but repetitious and thus falls on deaf ears. How about moderating a fair and balanced debates with those with opposing opinions on your website. It would be fantastic!

  15. droidX-G

    Heard someone on news say that we needed to stop spending because we were indebting our children to China….how is that possible when the Fed is buying 90% of the current debt? Maybe the Fed should consult with Mr Maddoff!

  16. Fred

    Exactly what I have been telling my friends – get out and get out of the country too if you can. We are living in a highly manipulated bull$#!? market. Obama is using the Iraq playbook for Iran in order, of course, to divert attention. Keep up the good work – donation sent.

  17. John Smith

    Global sustainable currency summit! Craziness! Is the end near?

    • Greg

      Seems that way.

  18. Illinois Troll

    As always, your weekly wrap up was great, but this week your cartoon showing the child in handcuffs to the Debt made me so sad. What are we doing to our children??? Here’s my gripe – I guess the Elite in control don’t care a lot for the masses’ children, but I sure do. My mother used to tell me stories of being raised during the Great Depression, and how they literally had nothing… Depended on the kindness of wealthy relatives for hand-me-down toys, and going through the neighbor’s dump pile for anything fun to play with. Because of those stories, I now find myself buying children’s toys whenever they’re on sale for those children who will be going through the Greater Depression that is straight ahead. Side note: We need to educate the children in our lives how to be self-sufficient, and independent. Don’t scare them, but use resources like the Boy Scouts and Girl Scouts to get them educated and confident about a variety of situations. Knowledge is power-even for our children!

  19. Tony of CA

    Hi Greg,

    What our your thoughts on the little bank bailout arrangement in Cyprus over the weekend?

    • Greg

      Tony of CA,
      Things are so interconnected and so fragile that even the smallest banks pose a systemic risk.
      Greg

  20. frosty

    Greg,

    When we see that $40 billion a month is being used to buy that “sour mortgage debt” we should ask.. Que bono, or who benefits?.

    Maybe I don’t understand how it works, but isn’t an equivalent expression for “sour debt” also a “claim on real property” like homes and stores and land that were foreclosed on after the bubble was blown and burst? If so, and at a $40 billion/ month rate it represents a whole lot of America’s “real property” being handed to the private Fed bankers courtesy of our government and subsidized by the American tax payers. This might be the answer to Qui bono.

  21. southernpatriot

    If you were to look into a crystal ball,would you see run’s on US banks any time soon? How much cash on hand is enough? I realize that these are not normal times, an there are to many tangibles to consider,but I recon we are closer to the SHTF,than ever before. Appreciate your updates.Thanks again Southern Patriot

    • Greg

      Southern Patriot,
      This is a hard question to answer as I have no idea what your needs and financial positions are. That said, you need to keep some cash on hand in-case of calamity–man made or natural.

      • T

        I’ve been buying cases of 100 dollars of rolls of nickels. They’re worth more melt than face, and having to buy things in nickels is embarassing and keeps you from spending it as much. Thoughts on nickels and the prospects of them being debases of their nickel content?

        • Greg

          T,
          I guess any metal like nickel would be good but buying small amounts of junk silver would be a better play in my mind. Nickel is not a precious metal and silver is.
          Greg

  22. T

    So I hear a lot about gold and countries buying gold, but I’m thinking with a GSR of 55 oz of silver to 1 oz of gold, silver would be the play now. Would a gold backed global currency keep the GSR (gold to silver ratio) skewed in the upper fifties this way?

  23. Dan Sincock

    The Great Depression will look like a cake walk! Even then if you could get A dollar you had somthing of worth, All I can say is get out of the Cities!.

  24. Fleendar

    What the fed is doing to the stock market is the same as a heroin user getting high. The more you inject into the system, the bigger high you get. However…. eventually what gets you high kills you because of system overdose.
    The stock market highs are simply an artificial high created by the huge money injection. Systemic failure of all critical organs will happen soon.

    • Greg

      And it takes more and more smack to get you high. We might just O D like the rest of the money junkies. Good comment thank you.

Leave A Reply

Please Note: All comments are moderated and manually reviewed for spam. In turn, your comment may take up to 24 hours to be posted. USAWatchdog.com also reserves the right to edit comments for grammar and spelling errors.

Your email address will not be published. Required fields are marked *