By Greg Hunter’s USAWatchdog.com
The Federal Reserve finally pulled the trigger on the so-called “taper”– or did it? I am talking about cutting back the Fed’s bond buying program by $10 billion a month. It is now $75 billion each and every month. Who is going to buy an extra $10 billion a month in debt? Are the banks going to take up the slack? The front page of USA Today says, “Fed: Era of Easy Money Ending.” Yet, on the front of the business page, Fed Chief Ben Bernanke is quoted as saying, “This is not intended to be a tightening . . . We’re trying here to get a high level of accommodation.” Which is it? Who knows what they are doing? My sources say the banks are putting trillions of dollars on interest rate swaps to hold down interest rates. The Fed wants you to think it’s being responsible, but it cannot stop printing money. Bernanke even said in a Q & A session that the Fed might increase the money printing. The latest housing and jobs numbers look like they are going to throw a cold bucket of water on the Fed’s phony “taper” move. And, just wait until those high Obama Care premiums suck billions of bucks out of the economy. And, let’s not forget the debt ceiling that will have to be raised in light of the new two year budget deal. That will be at least two trillion more added to our debt.
Reports out of the Middle East are showing Saudi Arabia is ready to act alone against both Syria and Iran. You might remember the Kingdom bought a record $60 billion in arms from the U.S. back in 2010. That included more than 80 brand new F-16’s. Saudi Arabia recently ordered nuclear weapons from Pakistan. This is one very serious warning. Other hot spots include the East China Sea and the disputed Senkaku Islands. Things are very tense between China, Japan and the U.S. Japan is making big plans to upgrade its military. War drums seem to pound louder as the global economy gets worse and worse.
The NSA lost a big battle in Federal court. A judge ruled its data collection was unconstitutional. Edward Snowden said he blew the whistle on the NSA because he thought the NSA spying was unconstitutional. This will no doubt be heard in the Supreme Court. Meanwhile, a White House advisory panel is recommending drastically cutting back on government spying–the sooner the better. Maybe Snowden can come home and charges be dropped? At least USA Today stopped calling Snowden a “leaker.”
Bitcoin got slammed this week. No surprise there. It is in competition with the U.S. dollar, Yuan and the Euro. What is a surprise is the revelation on Bloomberg that the London Gold vaults are “virtually empty.” Where’s the gold now? China. There really is a finite amount of gold. You have to ask yourself, if the London vaults are empty because of massive physical demand, why in the world is the price going down? The government wouldn’t be manipulating it to make the dollar look strong would they?
Join Greg Hunter as he analyzes these stories and more in the Weekly News Wrap-Up.