financial system

Podcast

Janet Tavakoli: Life And Death On Wall Street

History shows systemic corruption can be overcome
Sunday, October 30, 2016, 5:06 PM

Financial markets and derivatives authority Janet Tavakoli returns to the podcast to discuss a number of the themes contained in her new book Decisions: Life And Death On Wall Street.

She paints a particularly informative timeline of the greed and rot that has come to dominate the modern financial system, and how its tentacles have fully penetrated and subjugated the halls of power in Washington DC. » Read more

Blog

SkillUp/Shutterstock

Hell To Pay

The final condition for a market crash is falling into place
Friday, September 23, 2016, 5:23 PM

Those familiar with my writing know I put the word “markets” in quotes because we no longer have a financial system where legitimate price discovery is a regular -- or even recognizable -- feature.

It's destined to fail. What more can be said about such a flawed system?

Well, a lot as it turns out. 

And failure to pay attention at this stage of economic and ecological history will prove to be exceptionally painful. » Read more

Podcast

It's A Wonderful Life/Paramount

Nomi Prins: The Sinister Evolution Of Our Modern Banking System

Because we're all about those banks, 'bout those banks...
Saturday, January 31, 2015, 11:06 PM

Today, the 'revolving door' connecting our political and financial systems is evident to anyone with eyes. But this entwined relationship between Washington DC and Wall Street is nothing new, predating even the formation of the Federal Reserve. 

In this well-detailed interview, Nomi Prins goes into depth of the rationale and process behind the creation of the Federal Reserve, and more important, how its mandate -- and the behavior of the banking system overall -- metastasized into the every-banker-for-himself regime of sanctioned theft we now live with. » Read more

Blog

Gold & the Dollar are Less Correlated than Everyone Thinks

Understanding the impact of Triffin's Paradox
Tuesday, November 13, 2012, 11:03 AM

Whenever I make the case for a stronger U.S. dollar (USD), the feedback can be sorted into three basic reasons why the dollar will continue declining in value:

  1. The USD may gain relative to other currencies, but since all fiat currencies are declining against gold, it doesn’t mean that the USD is actually gaining value; in fact, all paper money is losing value.
  2. When the global financial system finally crashes, won’t that include the dollar?
  3. The Federal Reserve is “printing” (creating) money, and that will continue eroding the purchasing power of the USD. Lowering interest rates to zero has dropped the yield paid on Treasury bonds, which also weakens the dollar.

The general notion here is that, given the root causes of our economic distemper – rampant financialization, over-leverage and over-indebtedness, a politically dominant parasitic banking sector, an aging population, overpromised entitlements, a financial business model based on fraud, Federal Reserve monetizing of debt, and a dysfunctional political system, to mention only the top of the list – how can the USD appreciate in real terms? » Read more

Insider

If We're Ever Going to Take Control of Our Destiny, the Time is Now

Which actions make the most sense today?
Monday, October 22, 2012, 7:25 PM

Executive Summary

  • Adapting our behavior is a must at this point. We really don't have the option not to.
  • The number of claims on real wealth is increasing. How much of the "real wealth" do you own?
  • Our economy is now truly a confidence-based system. What will be the fallout when that confidence falters?
  • What are the key knowns & unknowns we need to be addressing now?

If you have not yet read Part I: In a Bad Spot, available free to all readers, please click here to read it first.

What is completely unknown at this point is what will happen to our very complex and interwoven financial system when it finally comes to grips with the idea that old-style growth is never coming back.  One worrisome idea is that it will experience something akin to cardiac arrest and simply break down one day. 

Maybe this will happen, maybe not.  I will note that the degree to which the central banks have set themselves up as the ultimate saviors of the system has both an upside and a downside, and it is the downside that worries me the most at this point.

While all the trillions of dollars of intervention have stabilized the system, which I consider to be a good thing, the downside is that the central banks have placed themselves in a position where they had better succeed.  If not?  Then we discover just how important confidence is to a monetary system built, owned, and operated on trust.  My guess is "very." » Read more