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Tag Archives: financial system

  • Podcast

    Janet Tavakoli: Life And Death On Wall Street

    History shows systemic corruption can be overcome
    by Adam Taggart

    Sunday, October 30, 2016, 9:06 PM

    14

    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.

     

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  • Blog
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    Hell To Pay

    The final condition for a market crash is falling into place
    by Chris Martenson

    Friday, September 23, 2016, 9:23 PM

    37

    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.

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  • Podcast

    Nomi Prins: The Sinister Evolution Of Our Modern Banking System

    Because we're all about those banks, 'bout those banks...
    by Adam Taggart

    Sunday, February 1, 2015, 3:06 AM

    43

    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.

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  • Blog
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    Gold & the Dollar are Less Correlated than Everyone Thinks

    Understanding the impact of Triffin's Paradox
    by charleshughsmith

    Tuesday, November 13, 2012, 3:03 PM

    30

    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?

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

    Which actions make the most sense today?
    by Chris Martenson

    Monday, October 22, 2012, 11:25 PM

    68

    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."

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  • Blog

    Gretchen Morgenson: Wall Street Really Does Enjoy a Different Set of Rules Than the Rest of Us

    by Adam Taggart

    Friday, March 23, 2012, 7:24 PM

    0

    Gretchen Morgenson has earned a Pulitzer-winning career from exposing abuse and conflicts of interest on Wall Street. In this interview, she confirms that there is indeed a second set of rules enjoyed by our elite financial institutions, largely unfettered by the constraints that apply to the rest of us.

    Consequences for failure and fraud are very different under this second set of rules — in fact, they’re practically rewarded. Accountability, by all prudent measures, has become non-existent. The extraordinary measures the U.S. deployed to deal with the great contraction in 2008 only served to exacerbate these imbalances.

    What’s sorely needed now is a national dialogue on whether we’re willing to allow this to continue. What benefits are we receiving by enabling these elite to enjoy such different standards? What type of system and rules might work better for our interests?

    Sadly, beyond the disorganized Occupy Wall Street outrage that has waned in visibility, there is no real cogent, organized public debate focused on this right now. A big reason is that Washington is actively avoiding such a dialogue. It was fundamentally complicit in creating the underlying factors resulting in the ’08 collapse and it doesn’t want brighter light helping the public understand that more clearly.

    As a populace we have a decision to make: Are we going to get more engaged and start articulating the reform we want to see? For if not, we’re making a passive decision to allow the wealth gap to widen further.

    In the meantime, Gretchen sees a lot of instability in financial markets that have been allowed to balloon further even though the underlying causes of the ’08 crash haven’t been resolved. She cautions investors to avoid risk (despite the Fed’s encouragements), pay down debt, and have a defensive plan in place should the markets suffer another serious correction in the near future.

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