Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Banking

Trump’s Establishment Pick for Fed Chair, Jerome Powell, Won’t Rock the Boat

This article appeared online at TheNewAmerican.com on Friday, November 3, 2017: 

Nothing will change with Trump’s nomination of Powell to head the Fed. He has a strong establishment background and opposed former Congressman Ron Paul’s effort to “Audit the Fed.”

In announcing his pick to replace Federal Reserve Board chair Janet Yellen, President Trump was generous in his praise for Jerome Powell, a present Fed board member:

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The U.S. Economy is Built on Papier-mâché and Politicians’ Promises

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 1, 2017:

What a perfect definition of the American economy! Papier-mâché is defined as a “composite material consisting of paper pieces of pulp, sometimes reinforced with textiles, bound with an adhesive such as glue, starch, or wallpaper paste.” Add in a dose of political promises that everyone knows cannot be kept – not even close – and we have the American economy.

From a distance it looks pretty good. More than pretty good: to the untrained eye the American economy is setting world records, to wit:

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Five Congressmen Demand the DOJ “Repudiate” Operation Choke Point

This article appeared online at TheNewAmerican.com on Tuesday, August 15, 2017: 

Logo of the United States Federal Deposit Insu...

Five Republican Congressmen fired off a letter last week to Attorney General Jeff Sessions, Fed Chair Janet Yellen, and Acting U.S. Comptroller Keith Noreika, demanding that they repudiate the Obama administration’s successful and continuing efforts to strangle financially gun shops and other supposedly “high-risk” and “disreputable” businesses. Called Operation Choke Point, the program continues despite declamations from the Justice Department to the contrary.

Said the letter:

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Trump’s Treasury Secretary Nominee Wants to Sell Fannie Mae, Freddie Mac

This article appeared online at TheNewAmerican.com on Thursday, December 1, 2016:  

English: The Colonial Revival headquarters of ...

The Colonial Revival headquarters of Fannie Mae

In an interview on FOX Business Network’s Mornings With Maria on Wednesday, Donald Trump’s nominee for treasury secretary, Steve Mnuchin, said one of Trump’s “top 10” priorities was to sell government-sponsored mortgage giants Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). Referred to colloquially as Fannie Mae and Freddie Mac respectively, Mnuchin told Maria:

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Venezuelan Currency Lost Half Its Value in November

This article appeared online at TheNewAmerican.com on Monday, November 28, 2016:  

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

Bloomberg reported last Thursday that Venezuela’s currency — the bolívar fuerte or “strong bolivar” — has lost 45 percent of its purchasing power so far this month, with six days to go. The underlying cause was put simply by Professor Milton Friedman, a member of the “Chicago School” of economic free market thinking and winner in 1976 of the Nobel Memorial Prize in Economic Sciences: “Inflation is always and everywhere a monetary phenomenon … and can be produced only by a more rapid increase in the quantity of money than in output.”

On the other hand, Venezuela’s president, Nicolas Maduro,

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A Tipping Point in Texas? It’s Building Its Texas Bullion Depository Bank

This article was published by The McAlvany Intelligence Advisor on Friday, May 6, 2016:  

Description: Newspaper clipping USA, Woodrow W...

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

A modest bill, getting little press and clothed in innocuous terms, could spell the end of the Federal Reserve’s monopoly on its “federal reserve note” currency. When Texas Governor Greg Abbot signed it into law almost a year ago, he said:

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Texas Contracts to Build Nation’s First State Gold Bullion Depository

This article appeared online at TheNewAmerican.com on Thursday, May 5, 2016:  

The Texas Comptroller’s Office has begun to receive bids from private contractors interested in building the country’s first state gold storage facility, the Texas Bullion Depository (TBD). When Texas Governor Greg Abbott signed into law the bill providing for it last July, he said it was all about saving fees being paid to store the state’s gold in New York banks:

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Iranian Complaints Prompt Obama Administration to Soften Sanctions

This article appeared online at TheNewAmerican.com on Friday, April 1, 2016: 

Anonymous sources told the Wall Street Journal on Friday that the U.S. Treasury Department is developing plans to allow Iran a “workaround” on sanctions imposed because of Iran’s support of terrorist groups.

These are separate from the sanctions lifted following the seven-nation agreement signed last July in which Iran agreed to scale back its nuclear development program. U.S. Treasury Secretary Jack Lew (pictured) made clear the difference then:

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The Ripple Effect of Rising Interest Rates

This article appeared online at TheNewAmerican.com on Wednesday, September 9, 2015:  

With financial talking heads now convinced that the Federal Reserve will finally increase interest rates as a result of the record-setting job openings report, few are asking about the “ripple effect” those increases might mean for individuals, for the auto and the housing industry, for companies and corporations, and, most importantly, for the debt-laden federal government.

If and when the fed announces upcoming interest-rate increases, in the short run, individuals might be tempted to accelerate their buying decision on cars and houses to take advantage of low rates before increases start flowing through to lenders in those sectors. In the longer run,

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Greeks Shout “NO!”

This article was published by The McAlvany Intelligence Advisor on Monday, July 6, 2015:  

Greek citizens shouted “No!” to further austerity measures for the hapless country in exchange for more of what got it into trouble in the first place: other people’s money. The lopsided 60-40 vote astonished telephone pollsters, who predicted a much narrower victory for Greek Prime Minister Alexis Tsipras of the far-left Syriza party. Although the issues were far more complicated than the referendum made it appear, the 68-word ballot question made it easy: do you want more increases in taxes, more cuts in pension benefits, another increase in the VAT … or not?  Translated into English, the ballot read:

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China Export Shipping Declines by Two-thirds

This article first appeared online at TheNewAmerican.com on Thursday, May 7, 2015: 

Two weeks ago the Shanghai Containerized Freight Index (SCFI), which tracks shipping rates from Shanghai to the world, fell off a cliff: down a breath-taking 67 percent from a year ago. Wolf Richter thought it was a statistical fluke.

It was no fluke. In the next two weeks the SCFI for Northern Europe fell another 14 percent, an all-time low. Wrote Richter: “Something big is going on in the China-Europe trade.”

The collapse is being echoed by other indexes reflecting the breathtaking decline in China’s exports. For example

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Huge Ex-Im Bank Loan Defaults Imperiling Bank’s Reauthorization

This article first appeared online at TheNewAmerican.com on Thursday, March 26, 2015: 

Seal of the Export-Import Bank of the United S...

Seal of the Export-Import Bank of the United States

On January 21, NewSat, a private satellite communications company headquartered in Australia, defaulted on a $21 million payment to its primary satellite provider, Lockheed Martin. That default is triggering an avalanche of defaults that could sink not only NewSat but also very likely the bank that guaranteed the loans financing the deal, the Export-Import Bank, whose charter is up for renewal on June 30.

The Ex-Im Bank has touted its ability and willingness to provide financing for American companies seeking to do business abroad but which couldn’t arrange financing the regular way: through private banking channels. According to the bank’s charter,

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Will Money-laundering Scandal Derail Lynch Nomination?

This article first appeared online at TheNewAmerican.com on Tuesday, March 17, 2015:

Friday’s news that French state financial prosecutors were joining with the Swiss government in pursuing charges that HSBC’s Swiss banking division was engaging in illegal tax dodges for their wealthy clients may have spelled the end of the nomination of Loretta Lynch (shown) to replace Eric Holder as U.S. Attorney General.

Three years ago, Lynch caved in and let HSBC off the hook with a modest fine and a slap on the wrist following its investigation into the bank’s money-laundering activities that helped fund Middle East terrorists and Mexican drug cartels. Lynch’s agreement insulated guilty parties from criminal prosecution while allowing the bank’s money laundering activities to continue despite its agreeing to a “cease and desist” order.

The current head count in the Senate gives

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Russian Cyber-thieves Steal $1 Billion From Russian Banks?

This article first appeared online at TheNewAmerican.com on Monday, February 16, 2015: 

A report released on Monday from Kaspersky Lab to be presented at a cyber-security conference in Cancun, Mexico, revealed a highly sophisticated, well-funded, and immensely patient plan to steal at least $300 million from banks around the world, with estimates that the real losses could exceed $1 billion.

Kaspersky Lab, the fourth largest international provider of sophisticated software to fend off malware attacks, has been tracking the band of hackers known as Anunak or Carbanak for years. The first public exposure of the plot to steal millions at first appeared in late 2013 to be a simple mistake:

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Impacts of Lower Crude Oil Prices Continue to Spread

This article first appeared online at TheNewAmerican.com on Tuesday, January 13, 2015:

 

After oil forecaster Jeremy Warner got lucky last year when he accurately called the top in oil prices, with a fall to at least $80 a barrel, he doubled down by predicting “that the oil price will remain low for a long time, sinking to perhaps as little as $20 a barrel over the coming year before recovering a little.”

Warner got lucky once again when Goldman Sachs confirmed his prognosis, setting off an eye-popping five percent decline in oil to $45 a barrel which continued into Tuesday. Tuesday’s low was $44.20. As Goldman Sachs noted,

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Swiss Bank Referendum Fails, Franc Drops

This article first appeared online at TheNewAmerican.com on Thursday, December 4, 2014:

Banknotes of the Swiss franc

Banknotes of the Swiss franc

The Swiss voted down the initiative “Save Our Swiss Gold” on Sunday, November 30, by a margin of three to one, rejecting efforts to shore up the Swiss National Bank’s (SNB) balance sheet. Switzerland, a direct democracy, entertains an average of five such referendums every year, and most of them fail. This initiative would have required the SNB to boost its gold bullion holdings from its current eight percent level to 20 percent over the next five years. It would also have required the central bank to repatriate its foreign-held gold reserves, while prohibiting it from ever selling any of those reserves in the future.

When first proposed, speculators bought the Swiss franc cheap, hoping to sell it dear if the initiative passed. Investors in gold were holding their breaths as well, noting that

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Robotic Pizza Delivery, Banking, and Now Over-the-road Trucking

This article first appeared at TheNewAmerican.com on Thursday, October 9, 2014:

Mercedes-Benz HighPerformanceEngines

Last month, Mercedes-Benz unveiled its “Future Truck 2025,” an essentially driverless over-the-road tractor-trailer rig that the company expects will revolutionize the trucking industry within the next 10 years, if not sooner. While only a prototype, the company is investing millions in the concept expecting that inside the next decade driverless rigs will be commonplace not only in the United States but across the world.

The advantages are obvious:

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IMF’s Toolkit Inadequate for Next Housing Bubble, Official Admits

 

Bubbles.

This article was first published at The McAlvany Intelligence Advisor on Monday, June 16, 2014:

Last month, the Financial Times saw what’s coming: Housing prices rose last year at the fastest rate since 1995, setting the stage for the next global bust. Eleven countries they were watching had year-over-year rises in double digits, adding:

Even Germany, known for its stable housing market, is prompting concern, with the Bundesbank warning that valuations are as much as 25 percent too high in [some] big cities.

It admitted great concern that regulators won’t be able to do anything about it, either, just like last time:

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Chinese Economist at IMF warns of Global Housing Bubble

Board of Governors - International Monetary Fu...

Board of Governors – International Monetary Fund (IMF) (Photo credit: Wikipedia)

The false assumption that regulators can be safely counted upon to steer economies – local, national or global – to full employment with minimal inflation while avoiding booms and busts was unknowingly exposed in the latest yelp from the Deputy Managing Director of the International Monetary Fund (IMF), Zhu Min. In Chinese, his name means “people rule” or “democracy” but his ideology is firmly rooted in the Keynesian fallacy that economies can be successfully managed by experts without assistance or input from the common folk.

In announcing that the IMF has launched a new website, Global Housing Watch, Min delights in thinking that the world’s economy can be driven by looking through the rear view mirror. He said:

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Federal Reserve Notes Soon to Become Irrelevant in Oklahoma

This article first appeared at The McAlvany Intelligence Advisor on Monday, June 9, 2014:

 

Republic of Hawaii Banknote for 20 gold dollar...

Republic of Hawaii Banknote for 20 gold dollars, 1895. (Photo credit: Wikipedia)

Something that the lamestream media missed entirely happened on Wednesday, June 4, in Oklahoma: the governor signed into law a bill affirming what is already guaranteed to each state in the US Constitution: that gold and silver coin are legal tender. Historians looking back may recall that day as the day the Federal Reserve’s hegemony over money ended.

Article I, Section 10, the U.S. Constitution states simply that

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.