The Fed is Absolutely Terrified of Something… What Is It?

[old steel]

What is the Fed so terrified of?

For five years we’ve been told that the world was in recovery. “Analysts” and pundits have trotted out every explanation imaginable for why things are in fact great and the markets should go straight up.

On top of this endless and mind-numbing chatter, the Fed has spent over $4 trillion… an amount larger than most sovereign economies. To put this into perspective, the Fed could have spent less money buying EVERY SINGLE ITEM OF ECONOMIC OUTPUT FROM GERMANY FOR A YEAR.

Between this insanity and the endless chatter of the world being great we have to ask… if things are SO great… why is it that even a 10% correction in stocks triggers panic from the Fed?

See the small dot in the chart below? That is the massive drop that caused both Janet Yellen and Fed President Bullard to verbal intervene to hold the markets up. They couldn’t even stomach a dip that barely registers on the five-year monster bull market without assuring the markets that they’d help.

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2014/10/sc.png

It’s absolutely insane especially when you consider that stocks could have fallen to 14000 on the Dow and STILL been in a bull market.

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2014/10/sc-1.png

All of this tells us, in no uncertain terms that the Fed is absolutely panicked about something. What it is, we cannot know for certain, but given that the general public is now aware of the abject fraud, corruption, and incompetence surrounding the bailouts and Fed policies, we can only assume it’s something BIG.

The reality is that the Fed never fixed the last crisis. It never addressed the financial system’s leverage. It never implemented any meaningful reform. The only thing it did was create another bubble.

And we all know how bubbles end.




http://www.zerohedge.com/news/2014-10-29/fed-absolutely-terrified-something%E2%80%A6-what-it

[old steel]

http://www.youtube.com/watch?v=9azjzhoL670

[madfranks]

given that the general public is now aware of the abject fraud, corruption, and incompetence surrounding the bailouts and Fed policies


Sorry, but the general public still has no idea what the federal reserve is or what it does.

[chad]

i posted somehting about qe on my facebook wall, and i have 14 replies asking "what is qe?" these replies are from people who are doctors, nurses, engineers, and so on.

[Cebu_4_2]

i posted somehting about qe on my facebook wall, and i have 14 replies asking "what is qe?" these replies are from people who are doctors, nurses, engineers, and so on.

If you're the smartest person in the room, you're in the wrong room.

[Hatha Sunahara]

The Fed has its fingers in the dyke, keeping it from bursting. They can see more holes in the dike than they have fingers. Wouldn't you be worried if you didn't have enough fingers to keep you from drowning?

The Chinese and the Russians are bypassing the dollar. The Saudis are doing it as well. The DJIA, the value of the dollar, low interest rates are all unsustainable with the policies of the Fed and the US government. They have very few options. They are vulnerable, just as the Great Wizard of Oz was with Toto pulling the curtain. They are about to be 'found out' for the frauds they are.


Hatha

[palani]

If you don't recognize a legal fiction for what it is then why would anyone be surprised if you become controlled by it?

[gunDriller]

> What is the Fed so terrified of?

I don't think they're too scared of us Buying Silver & Crashing JP Morgan.


But they might be scared of China Buying Silver.

[gunDriller]

http://www.youtube.com/watch?v=9azjzhoL670

Do you mean they're scared of deflation ?

as opposed to

http://img2.wikia.nocookie.net/__cb20081231161155/uncyclopedia/images/5/50/Rocket_Launch.jpg

[Gold Rules]

Did anyone notice the following comment in that very thread ?

"ZEROHEDGE: NO FACT-BASED CRITICISM OF ISRAEL ALLOWED."

I saved this when I saw it & now I cant find the thread.


found it........interesting?


Duffy Duck (http://www.zerohedge.com/users/duffy-duck) http://www.zerohedge.com/sites/default/files/pictures/picture-191149.png (http://www.zerohedge.com/users/duffy-duck)

The username the phallic crusader has not been activated or is blocked.

ZEROHEDGE: NO FACT-BASED CRITICISM OF ISRAEL ALLOWED.

[Serpo]

Bob Moriarty: Flock of Black Swans Points to Imminent Stock Market Crash



-- Posted Wednesday, 29 October 2014 | Share this article | 1 Comment (http://news.goldseek.com/GoldSeek/1414608684.php#disqus_thread)


Source: Karen Roche of The Gold Report (10/29/14)

Between a rising U.S. Dollar Index and black swan events around the world, it's looking like bunker time for Bob Moriarty. In his latest interview with The Gold Report (http://www.theaureport.com/), the 321gold.com founder delivers a frank overview of U.S. international policy and lambasts commentators who look to their tea leaves in search of the next market moves.

The Gold Report: Bob, in our last interview (http://www.theaureport.com/pub/na/15852) in February, we had currency devaluation in Argentina and Venezuela. We had interest rate hikes in Turkey and South America. We had a cotton and federal bond-buying program. Just eight months later in October, we've got Ebola. We've got ISIS. We've got Russia annexing Crimea. We've got a rising U.S. Dollar Index. We've got pullbacks in gold, silver and pretty much all commodity prices. With all this news, what, in your view, should people really be focusing in on?

Bob Moriarty: There is a flock of black swans overhead, any one of which could be catastrophic. The fundamental problems with the world's debt crisis and banking crisis have never been solved. The fundamental issues with the euro have never been solved. The world is a lot closer to the edge of the cliff today than it was back in February.

About ISIS, I think I was six years old when my parents pointed out a hornet's nest. They said, "Whatever you do, don't swat the hornets' nest." Of course, being six years old, I took stick and went up there and swatted the hornets' nest, which really pissed off the hornets. I learned my lesson.

We swatted the hornets' nest when we invaded Iraq and Afghanistan. What we did is we empowered every religious fruitcake in the world. We said, "Okay, here's your gun, go shoot somebody. We'll plant flowers." We are reaping what we sowed. What we need to do is leave them to their own devices and let them figure out what they want to do. It's our presence in the Middle East that is creating a problem.

TGR: Will stepping back allow the Middle East to heal itself, or will there be continued civil wars that threaten the world?

BM: We are the catalyst in the Middle East. We have been the catalyst under the theory that we are the world's policemen and that we're better and smarter than everybody else and rich enough to afford to fight war after war. None of those beliefs are true. The idea that America is exceptional is hogwash. We're not smarter. We're not better. We're certainly not effective policemen.

The Congress of the United States has been bought and paid for by special interest groups: part of it is Wall Street, part of it is the banks and part of it is Israel. We're just trying to do things that we can't do. What the U.S. needs to do is mind its own business.

TGR: You've commented recently that you're expecting a stock market crash soon. Can you elaborate on that?

BM: We have two giant elephants in the room fighting it out. One is the inflation elephant and one is the deflation elephant. The deflation elephant is the $710 trillion worth of derivatives, which is $100,000 per man, woman and child on earth. Those derivatives have to blow up and crash. That's going to be deflationary.

At the same time, we've got the world awash in debt, more debt than we've ever had in history, and it's been inflationary in terms of energy and the stock market. When the stock and bond markets implode, as we know they're going to, we're going to see some really scary things. We'll go to quantitative easing (QE) infinity, and we're going to see the price of gold go through the roof. It's going to go to the moon when everything else crashes.

TGR: How are you looking at the crash—short term, like before the end of this year? How imminent are we?

BM: Soon.

TGR: Are you in or out of the market?

BM: Oh, I'm in. Not in the general market, but I'm in resources. There's a triangle of value created by a guy named John Exter: Exter's Pyramid. It's an inverted pyramid. At the top there are derivatives, and then there are miscellaneous assets going down: securitized debt and stocks, broad currency and physical notes. At the very bottom—the single most valuable asset at the end of time—is gold. When the derivatives, bonds, currencies and stock markets crash, the last man standing is going to be gold.

TGR: So the last man standing is the actual commodity, not the stocks?

BM: Not necessarily. The stocks represent fractional ownership of a real commodity. There are some really wonderful companies out there with wonderful assets that are selling for peanuts.

TGR: In one of your recent articles, "Black Swans and Brown Snakes (http://www.321gold.com/editorials/moriarty/moriarty100614.html)," you were tracking the U.S. Dollar Index as it climbed 12 weeks in a row, and you discussed the influence of the yen, the euro, the British pound. Can you explain the U.S. Dollar Index and the impact it has on silver and gold?

BM: First of all, when people talk about the U.S. Dollar Index, they think it has something to do with the dollar and it does not. It is made up of the euro, the yen, the Mexican peso, the British pound and some other currencies. When the euro goes down, the Dollar Index goes up. When the yen goes down, the Dollar Index goes up. The dollar, as measured by the Dollar Index, got way too expensive. It was up 12 weeks in a row. On Oct. 3, it was up 1.33% in one day, and that's a blow-off top. It's very obvious in hindsight. I took a look at the charts for silver and gold—if you took a mirror to the Dollar Index, you saw the charts for silver and gold inversely. When people talk about gold going down and silver going down, that's not true. The euro went down. The yen went down. The pound went down and the value of gold and silver didn't change. It only changed in reference to the U.S. dollar. In every currency except the dollar, gold and silver haven't changed in value at all since July.

The U.S. Dollar Index got irrationally exuberant, and it's due for a crash. When it crashes, it's going to take the stock market with it and perhaps the bond market. If you see QE increase, head for your bunker.

TGR: Should I conclude that gold and silver will escalate?

BM: Yes. There was an enormous flow of money from China, Japan, England, Europe in general into the stock and bond markets. What happened from July was the equivalent of the water flowing out before a tsunami hits. It's not the water coming in that signals a tsunami, it's the water going out. Nobody paid attention because everybody was looking at it in terms of silver or gold or platinum or oil, and they were not looking at the big picture. You've got to look at the big picture. A financial crash is coming. I'm not going to beat around the bush. I'm not saying there's a 99% chance. There's a 100% chance.

TGR: Why does it have to crash? Why can't it just correct?

BM: Because the world's financial system is in such disequilibrium that it can't gradually go down. It has to crash. The term for it in physics is called entropy. When you spin a top, at first it is very smooth and regular. As it slows down, it becomes more and more unstable and eventually it simply crashes. The financial system is doing the same thing. It's becoming more and more unstable every day.

TGR: You spoke at the Cambridge House International 2014 Silver Summit (http://cambridgehouse.com/event/32/the-silver-summit-2014) Oct. 23–24. Bo Polny also spoke. He predicts that gold will be the greatest trade in history. He's calling for $2,000 per ounce ($2,000/oz) gold before the end of this year. We're moving into the third seven-year cycle of a 21-year bull cycle. Do you agree with him?

BM: I've seen several interviews with Bo. The only problem with his cycles theory is you can't logically or factually see his argument. Now if you look at my comments about silver, gold and the stock market, factually we know the U.S. Dollar Index went up 12 weeks in a row. That's not an opinion; that's a fact. I'm using both facts and logic to make a point.

When a person walks in and says, okay, my tea leaves say that gold is going to be $2,000/oz by the end of the year, you are forced to either believe or disbelieve him based on voodoo. I don't predict price; I don't know anybody who can. If Bo actually can, he's going to be very popular and very rich.

TGR: Many people have predicted a significant crash for a number of years. How do you even begin to time this thing? A lot of people who have been speculating on this have lost money.

BM: That's a really good point. People have been betting against the yen for years. That's been one of the most expensive things you can bet against. Likewise, people have been betting on gold and silver and they've lost a lot of money. I haven't made the money that I wish I'd made over the last three years, but I've taken a fairly conservative approach and I don't think I'm in bad shape.

TGR: Describe your conservative approach.

BM: The way to make money in any market is to buy when things are cheap and sell when they're dear. It's as simple as that. Markets go up and markets go down. There is no magic to anything.

TGR: Hard to argue with that. Bob, thanks as always for sharing your candid insights.

BM: Happy to be here.

Boband Barb Moriarty brought 321gold.com to the Internet over 10 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 820 missions in Vietnam. He holds 14 international aviation records.

DISCLOSURE:
1) Karen Roche conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an employee.
2) Bob Moriarty: I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
3) Streetwise Reports does not accept stock in exchange for its services.
4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer (http://streetwisereports.com/disclaimer/).
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

Streetwise - The Gold Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.
http://news.goldseek.com/GoldSeek/1414608684.php

[crimethink]

Federal Reserve Caps Its Bond Purchases; Focus Turns to Interest Rates

http://www.nytimes.com/2014/10/30/business/federal-reserve-janet-yellen-qe-announcement.html

[crimethink]

Did anyone notice the following comment in that very thread ?

"ZEROHEDGE: NO FACT-BASED CRITICISM OF ISRAEL ALLOWED."

I saved this when I saw it & now I cant find the thread.


found it........interesting?


Duffy Duck (http://www.zerohedge.com/users/duffy-duck) http://www.zerohedge.com/sites/default/files/pictures/picture-191149.png (http://www.zerohedge.com/users/duffy-duck)

The username the phallic crusader has not been activated or is blocked.

ZEROHEDGE: NO FACT-BASED CRITICISM OF ISRAEL ALLOWED.

Also on this thread:

http://www.zerohedge.com/news/2014-10-29/pentagon-approves-mandatory-21-day-quarantine-us-troops-returning-ebola-missions

And, presumably, a moderator response:


Racism, to include any religious affiliation, will not be tolerated in ANY FORM on this site, including the disparagment of people in the comments section.

To report any form of discrimination, please right click on the comment number, copy the link to the comment, and send the comment link to abuse [at] zerohedge.com.

Any user found to be discriminating against ANY race, religion, or affiliation, will be banned immediately, and have their comments removed from the system.

You have been warned.

[Gold Rules]

Also on this thread:

http://www.zerohedge.com/news/2014-10-29/pentagon-approves-mandatory-21-day-quarantine-us-troops-returning-ebola-missions

And, presumably, a moderator response:


Racism, to include any religious affiliation, will not be tolerated in ANY FORM on this site, including the disparagment of people in the comments section.

To report any form of discrimination, please right click on the comment number, copy the link to the comment, and send the comment link to abuse [at] zerohedge.com.

Any user found to be discriminating against ANY race, religion, or affiliation, will be banned immediately, and have their comments removed from the system.

You have been warned.

Soooooo correct me if I am wrong .....do I understand this correctly ??

the truth will be & is suppressed there

so ......some folks are more equal then others......will keep that in mind when & if I ever go there again

[Serpo]

The Fed is Absolutely Terrified of Something… What Is It?..............................


http://d.ibtimes.co.uk/en/full/165291/gold-silver-bars-are-pictured-austrian-gold-silver-separating-plant-039oegussa039-vienna.jpg

[old steel]

Who is this guy?



http://www.youtube.com/watch?v=tQBia1Mw9Vw

[old steel]

Alan Greenspan: QE Failed To Help The Economy, The Unwind Will Be Painful, "Buy Gold"

WTF? (http://www.zerohedge.com/news/2014-10-29/alan-greenspan-qe-failed-help-economy-unwind-will-be-painful-buy-gold)




(http://www.zerohedge.com/news/2014-10-29/alan-greenspan-qe-failed-help-economy-unwind-will-be-painful-buy-gold)

[PatColo]

they're talking end of QE shite in this podcast, 1h 46m,


The Real World of Money with Andrew Gause 2014.10.29 (http://grizzom.blogspot.com/2014/10/the-real-world-of-money-with-andrew_29.html)

http://oneradionetwork.com/wp-content/uploads/Andrew-Gause1.bmp (http://oneradionetwork.com/wp-content/uploads/Andrew-Gause1.bmp)
It Is Not Who Votes That Matters, It’s Who Counts the Votes

Topics
-What have been the effects of the FED’s money printing the past six years?
-FED may say they are ending QE3 today, but they will not do likewise
-A massive depression would commence with out further FED action
-Home ownership lowest since 1983
-What does it take to buy a home these days
-Someone wanted 10 tonnes of gold last week and JP Morgan sold it to them
-China’s RMB now convertible with the Shanghai Dollar. What does it mean reall?
-The safest banks to story your money in are?
-The history of 1933 gold recall and who knew about it beforehand
-The inflation tank is full, now it is about masking it’s affects in society
-25 EU banks fail stress tests last week
-Understanding the spoils of war and how the banking cabal runs other countries today
-Economic warfare goes on every hour of every day
-Trader Scott gives his prognosis on the markets and metals. Andy comments
-Paying for stuff thru devices not cards
-Is the Switzerland Gold Referendum coming soon a possible win?
-Cornering the copper market in one day

The Real World of Money Archive (http://www.oneradionetwork.com/the-real-world-of-money/)
Andy's site (http://www.andygause.com/)


Download (http://k007.kiwi6.com/hotlink/zdms36xgja/The.Real.World.of.Money.with.Andrew.Gause.2014.10. 29.mp3)

[crimethink]

Soooooo correct me if I am wrong .....do I understand this correctly ??

the truth will be & is suppressed there

so ......some folks are more equal then others......will keep that in mind when & if I ever go there again


Very rare is the site that allows open discussion of the self-chosen Master Race and its criminal enterprises. Since ZeroHedge is aimed at those with money, it is understandable that a large percentage of Jews frequent it. They don't want to piss off that clientele. Or, it could be that the site is run by Jews - no way to know since the ownership and editorship is secret.

[mick silver]

they know doom is coming they just don't know when like all of us here . they have slow it down so they can make it with all the free food and bunkers they have now

[chad]

jim rickards said they are going to take all of the gold and bury it in a nuclear bunker in europe.

[mick silver]

chad would that be the Rothschild family nuclear bunker in europe

[Carl]

They fear a global, cascading collapse, of credit as currency.

[mick silver]

all of which are owned or controlled in proxy by an incredibly small coterie of satanists - doesn't give a damn about anything except its own secret agenda for world dominion ... http://www.commonsenseevaluation.com/wp-content/uploads/2013/01/Ship-Of-Fools.jpg

[PatColo]

U.S. Government Stages Fake Coup To Wipe Out National Debt


http://www.youtube.com/watch?v=TRgRz3nSG7o


^ funny yeah, but notice onion uses scary A-rabs :o as the coup-ers, and doesn't mention izzy in their announcement to the world. Sort of bass ackwards... :rolleyes: