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A Coming “Hyper-Correction”?


Richard W. Fisher There is something about his right eye and his smile that reminds me of the Great White Shark in Disney's film "Finding Nemo". [courtesy Google Images]

Former Dallas Federal Reserve President Richard W. Fisher
There’s something about his right eye and his smile that reminds me of the Great White Shark in Disney’s film “Finding Nemo”.
[courtesy Google Images]

Richard W. Fisher served as the President and CEO of the Federal Reserve Bank of Dallas from A.D. 2005 until he retired earlier this year.

CNBC recently published an article entitled, “Fed’s Fisher Say’s Market Is ‘Hyper Overpriced,’ See’s A Major Correction”.  According to that article, while being interviewed on Squawk On The Street, Mr. Fisher said,

 

“Are we vulnerable in my personal opinion to a significant equity market correction? I do believe we are, and the reason for that is people have gotten lazy. They’ve depended totally on the Fed.”

First, I view Fisher’s charge against “lazy” investors as an attempt to distance himself and the Federal Reserve from responsibility for he believes is a coming “significant equity market correction” (also known as a “crash”).  Fisher is telling all the “lazy” investors “Don’t blame me and the Fed when you lose your assets—it’ll be your own darn fault.”

Nevertheless, despite what may be the self-serving nature of Fisher’s warning, he’s right.  Investors depend primarily—and excessively—on the Fed to guarantee their prosperity.

Evidence?  Look at stock markets jumping up or down depending on whether Federal Reserve Chairman Yellen says—or doesn’t say—words like “patience”.  The markets’ response to Yellen’s mere choice of words is absurd and far removed from rational theory of investing.

Investors have become “lazy” in the sense that they don’t rigorously analyze stocks and corporations and devote great effort to deciding where to invest their wealth.  Instead, they tend to invest in almost any stock and expect to profit because the Federal Reserve will essentially guarantee that the equities markets will rise.

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Posted by on April 1, 2015 in Economic collapse, Economy, Federal Reserve

 

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Tuesday Night Radio: Constitution of States; Anti-Israel Fever; Florida Red-Light Cameras; Army Apologies; more.


American Independence Hour hosted by Alfred Adask; 8:00 PM to 10:00 PM Central time, Tuesday nights, on AmericanVoiceRadio.com and also on the KU band, free-to-air satellite link at Galaxy 19.  There’ll be call-ins at 1-855-566-3738.

 
6 Comments

Posted by on March 31, 2015 in American Independence Hour, Radio

 

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Bush almost said “Conspiracy”


George W. Bush is interviewed about the Boston Bombing and 9/11.  His response is kinda hilarious.  He starts to bumbles right into the subject, and then tries to figure out how to gracefully retreat.

Laura Bush doesn’t say anything, but there’s a moment starting around 30 seconds into the video where she narrows her eyes, looks at GW and seems to ask, “How, in God’s name, did I ever manage to marry this moron?”

video    00:00:52

 
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Posted by on March 30, 2015 in 911, Humor, Video

 

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Fraudclosure Victories?


[courtesy Google Images]

[courtesy Google Images]

Since A.D. 2009, I’ve published 25 articles on the fraud that appeared to infect most home foreclosures (see, Foreclosure).  This will be the 26th.

Most of those articles focused on reports that the banks making mortgage loans had defrauded the borrowers.  The fraud worked like this:

1) The banks seemingly loaned money to people to buy new homes.

2) These loans were based on the home-buyers’ signatures on Promissory Notes and Mortgage documents that memorialized the home-buyers’ promise to a) repay the loans; and b) surrender possession of the house if they defaulted on repaying the loans.  These written documents created the banks’ rights foreclose on the home-buyer and seize his home if he defaulted on making his loan payments.

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Posted by on March 30, 2015 in Banking, Foreclosure, Fraud

 

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Tuesday Night Radio: Digital Banking Flash Crashes; Police State Shoots People; Thomas Jefferson quotes; more.


American Independence Hour hosted by Alfred Adask; 8:00 PM to 10:00 PM Central time, Tuesday nights, on AmericanVoiceRadio.com and also on the KU band, free-to-air satellite link at Galaxy 19.  There’ll be call-ins at 1-855-566-3738.

 
49 Comments

Posted by on March 24, 2015 in American Independence Hour, Radio

 

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Allies Revolt?


[courtesy Google Images]

[courtesy Google Images]

The New York Times recently reported in “Hostility From U.S. as China Lures Allies to New Bank” that,

 

“ When Xi Jinping, then the newly minted Chinese leader, first broached the idea of a new Asian development bank in a public speech in 2013, few in Washington paid it much heed.

“But as Beijing systematically recruited longtime American allies to help fund and oversee the new bank, it became clear that the push was more than a public relations gesture to China’s Asian neighbors.  It was also a direct threat to the post-World War II financial institutions led primarily by the United States, and to President Obama’s pledges to make a “pivot” to Asia in American foreign policy.

“Now with Britain, France, Germany and Italy signing up to join the new bank, despite direct pleas from Washington to steer clear, the question is whether the Obama administration mishandled a significant challenge from China, and what it might have done differently.”

 

No, that’s not “the question”.

“The questions” are:

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Currency War’s Prize: Privilege to Print “World Reserve Currency”?


Dali: a surrealist artist for a surreal currency [courtesy Google Images]

Salvador Dali: a surrealist artist for a surreal currency
[courtesy Google Images]

Salvador Dali (1904-1989) was one of the world’s premier surrealist artists.  During his peak popularity he enjoyed a peculiar privilege: Whenever he wrote a check, he embellished the check with so many distinctive flourishes and artwork, that many people refused to cash his checks. 

Why?  Because they believed his check (an intrinsically worthless piece of paper) was—as a work of art signed by the Dali—worth more than the face value of the check. 

Result?  Dali frequently didn’t have to actually pay for many of the goods and services he purchased by check with a deduction from his bank account.  Dali could buy dinner or a new pair of tools and discharge his debt with nothing more than a few doodles.

Dali was essentially printing his own fiat currency (an intrinsically worthless piece of paper just like a US fiat dollar).  His celebrity allowed him to use that “currency” to discharge his debts without redeeming that currency at Dali’s bank.

In that regard, Dali was able to emulate the US government’s ability to issue fiat dollars (the World Reserve Currency) and never have to actually redeem the fiat dollar. 

I.e, whoever prints the world reserve currency doesn’t have to actually pay his bills.  At least not for a couple of generations.

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