Wednesday, May 09, 2012
The dulcet tones of Jim Grant provided much food for thought on Tom Keene's Bloomberg Radio show this morning. While the interest rate observer did not change his tack on the extreme experimentation of world's central banks, he did have some new perspective on the incredible moral hazard (or unintended consequence) that is being created. One of his main criticisms is the incredible arrogance and conceit of a central banking system that believes it can see the future and thwart things before they come to pass, as he notes "I blame the central bankers for confusing the black art of central planning with the traditional art of central banking". He fully expects more easing by the Fed and its friends as he awaits their response to this latest stumble in the markets but what is most evident to him is that "The Fed owns the stock market" since they have financially repressed all investors into risky assets they now have been forced to have a moral responsibility to keep us safe in those assets - incredibly! The Fed is more likely than not to intervene with still more money-printing in any effort to keep this bubble afloat. What Jim focuses on is the morality in economics and the current immoral policies that have very bad consequences.
Jim's discussion of the Fed begins around 6:05 and he dives into financial repression at the 9:44 mark
Transcript: Well, happy Schuman Day, or Europe Day, as you now call it, although I thought the celebrations were rather muted. The only bit of real passion we had was Mr Schulz slagging off the English but that now appears to be the sort of popular sport in this parliament. And when people stand up and talk about the great success that the EU has been I'm not sure that anybody saying it really believes it themselves anymore. I think we are celebrating the wrong day.We shouldn't be celebrating the 9th of May, we should be celebrating the 8th of May, Victory in Europe Day. We should celebrate the last time the Germans tried to smash the continent and they foundered and at least half the continent got its democracy back.
MUST WATCH especially as youtube are making it difficult for us to post: Author, researcher and scientist, Michael Tellinger has just filed his 1,100 page notice of motion against Standard Bank in the Constitutional Court, accusing the bank of "unlawful and unconstitutional activity". He also served the notice on the Reserve Bank and the Minister of Finance. Michael Tellinger joins ABN's Samantha Loring in studio to give us more details. Source/video
The political dam has broken in Europe. German Chancellor Angela Merkel no longer has enough allies in the club of EU prime ministers to impose her hairshirt agenda. Her methodical plans are disintegrating on every front.By Ambrose Evans-Pritchard
The immediate fate of Greece - and the euro - is in the hands of a boyish motorcycle Marxist. Syriza leader deal Alexis Tsipras has vowed to tear up the hated Memorandum, as the EU-IMF "troika" loan package is known.
He showed no sign of backing off as he met his country's president and began talks on the formation of an implausible Left front. "The popular verdict clearly renders the bailout null and void," he said.
To those who warn that such defiance means an unstoppable lurch towards full default, a banking crash and EMU expulsion, he retorts that Greece has the "ultimate weapon". It can bring down the whole European system if EU leaders refuse to soften the terms.
This bluff may be called. "Patience among the creditor countries is running out," said Blanka Kolenikova from IHS Global Insight. Germany's media says finance minister Wolfgang Schauble is itching to force Greece out of the euro as a salutary example, sure that Europe is strong enough to withstand the shock. This, in turn, is an illusion waiting to be punctured.
Arnaud Mares from Morgan Stanley said a Greek exit would set off "massive deposit flight" from all the vulnerable EMU states. "It could unravel the single currency altogether."
According to Dr. Boian Alexandrov at the Center for Nonlinear Studies at Los Alamos National Laboratory in New Mexico, terahertz (THz) waves destroy human DNA. The waves literally unzip the helix strand. Now a team of technologists at UT Dallas are planning to take chips broadcasting THz waves and embed them into mobile phones for use as an imaging system for consumers, law enforcement and medical personnel… a potentially deadly technology that could eventually kill or sicken millions of people.
The controversial THz scanner technology used by the TSA at many of the nation’s airports is being adapted for cell phone use. Studies of terahertz radiation have caused experts to raise alarms over the significant health risks to humans.
American officials say they uncovered an al-Qaeda-made bomb that could have successfully passed through TSA’s security checkpoints — but only days after a leading US lawmaker launched a campaign to abolish that very agency.
The US Federal Bureau of Investigation announced late Monday that a plot to detonate a highly-developed explosive onboard an airplane en route to the United States was foiled by American intelligence agents. As details developed about the alleged attack, however, it was revealed that the would-be plot was never actually hatched to the point where the US would have been in real danger.
The FBI was quick to say that the explosive may have been able to pass through the Transportation Security Administration’s airport screening check points unnoticed by federal agents. It was only after, though, that counter-terrorism officials revealed that the US was never quite in danger.
The alleged bomb was described on Monday as being non-metallic and therefore may have been able to pass through TSA screenings without raising a red flag. Discussing the explosive with ABC News’ Good Morning America on Tuesday, however, White House counter-terrorism advisor John Brennan explained that the bomb was not an“active threat.” In a separate conference held in New Delhi that day, Secretary of State Hillary Clinton said, “The device did not appear to pose a threat to the public air service.”
What does appear to be in danger, however, is the TSA itself.
It’s official. Ron Paul has won two states. He’s probably going to win more. - In response, most media outlets have chosen to ramp up their passive-aggressive attacks on Paul’s campaign.
Ever since he announced that he would seek the Republican nomination for president back in 2007, Ron Paul has been covered like no other major party candidate in U.S. history.
Let’s review: During his previous campaign for the 2008 Republican nomination, the media largely pretended he wasn’t running at all. When he was covered, virtually every article or segment described him as a “gadfly” and his campaign as “quixotic.” Even before the first debate was held, we were assured at least twice in every news piece that Paul “had little chance of winning the nomination.”
At the start of this election cycle, the gadfly’s quixotic campaign was covered in much the same manner. Admittedly, the insinuations that Paul’s views were “fringe” or “crazy” had diminished. It’s hard to call someone crazy after all of his economic predictions come true and all of the predictions of his opponents prove wrong.