FOMC Day: There Has Been No Recovery – The Housing Bubble Is Re-Popping

Posted Wednesday, 17 June 2015

By Dave Kranzler

The whole thing was in fact a giant lie used to cover up the fact that none of the money was spent to try and generate economic growth. – Phoenix Capital Research LINK

The Fed’s FOMC is concluding another two-day meeting today and will issue its latest policy statement around 2 p.m. EST, as the idiots on financial tv sit on the edge of their seat trying to figure out which word or syllable as changed from the last policy decision statement. The entire process is nothing more than well-staged theatre of the absurd.

How do we know the US is not in recovery? It’s really quite simple. If it were, the Fed wouldn’t have any issue with raising rates. – Phoenix Cap Research

Now that we’re seeing retail sales decline month to month almost every month, manufacturing indices plunging to levels not seen since 2008-2009 and the GDP registering a decline, before inflation is stripped out – of almost 1% in Q1, it is highly improbable that the Fed will dare raise rates. Not even a gratuitous quarter point bump.

Why this country’s debt-bloated, overleveraged financial system now has unmanageable levels of debt bulging for every nook and cranny in the system. Even worse, there’s $100’s of billions of leveraged exposure lurking behind of the insidious facade of off-balance-sheet accounting at the big banks.

Then there’s housing bubble 2.0. Only this time around its only a “price” bubble – as opposed to a price and volume bubble like housing bubble 1.0. This price bubble has been fueled by the $2.0 trillion – and still counting as the Fed is still buying $10’s of billions of mortgages every month – of money printing. – Investment Research Dynamics

Why do I say it’s only a price bubble? Because, other than the loud noise of water cooler and cocktail party chatter about hot housing markets, transaction volume is at best tepid:

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Based on the level of existing home sales for the last 7 years, it’s hard to characterize this as a “hot” market. Too be sure, there are some poor souls who are getting suckered into buying a home by their aggressive realtor, but they are competing with a large cohort of investor/flippers who YTD have represented roughly 40% of transaction volume (more on this later). Institutional investment buyers who drove volume in 2011-2013 are leaving the scene, with some of them unloading homes onto the gaggle of mom and pop flipper operations.

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Here’s your housing bubble: the median price of existing homes has soared 41% since 2012. BUT as you can see from the graph just above, the price-action is not supported by volume. As the volume dries up, there will be an an air-pocket collapse of the price. Anyone who has traded relatively illiquid securities – homes are extremely illiquid most of the time – knows exactly what I’m talking about. Once volume dries up and the market heads south, if you’re long, you’re wrong.

Speaking of a system bulging with debt protruding from every crevice, Jim Quinn’s Burning Platform featured a must-read article yesterday in which the author has discovered that the Loan-To-Value Ratio on Fannie Mae-issued mortgages is now at its highest level in history – nearly 10% higher than at the peak of housing bubble 1.0:

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This is a debt and price bubble that has been fueled by the Fed and by the significant easing of credit terms for Government-sponsored and Government-backed mortgages. You can buy a home with effectively with a negative down payment. The Government requires a 3% down payment, the seller can subsidize up to 6% of your closing costs AND you can borrow the down payment. That math adds up to a negative down payment. Note: Government = you, the taxpayer.

If the Fed raises interest rates, we will witness perhaps the the fastest systemic collapse in history. We are going to witness a stunning collapse in housing anyway. It’s just a matter of time before we see a reversion to the mean in which housing prices revert back to the true fundamental condition of the middle class in this country. A fundamental condition which is has significantly and substantially degraded over the last seven years since the first housing bubble exploded.

http://investmentresearchdynamics.com/

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Surviving the Jade Helm Era Depends On Taking Your Money Out of the Bank

12 June 2015 by Dave Hodges The CommonSenseShow.com

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Now that you know, or should know, that your bank account is no longer owned by you, a prudent man would also realize that your retirement, 401k, your home and even your freedom is at risk. It is time for you to salvage what you can and then put what’s left of your resources towards surviving what is coming. Literally, your life depends on whether you begin to take your assets out the bank and begin to purchase life sustaining supplies as well as build an economic base designed to meet future requirements in a post-Jade Helm world.

This article will make more sense if you visit The Common Sense Show website and read the articles posted between November 16-20, 2014 and what you will discover will be the following:

1. Your bank deposits are no longer considered to be money.

2. The Credit Swap derivatives have priorty over all bank depositors in case of widespread bank failures. The FDIC will not know your name.

3. On November 10, 2014, the Federal Reserve, the FDIC and the UK banks practiced for widespread bank failure.

4. Drastic policies have been enacted which inhibit your ability to take your money of your bank.

5. Ultimately, the globalists will be coming for your pensions and 401 K’s in addition to the loss of your bank account

The Petrodollar is on the verge of collapse. Some are forecasting that the run on the banks could begin at anytime between now and October of 2015. I do not make financial predictions and attach dates to the predictions, however, given the volatility of the present market, I feel strongly that one might want to error on this side of caution.

The Death of the American Economy

There was an obscure story which ran three years ago which is receiving scant attention and yet, it is the banking story of the decade. It is the number one banking story in human history. It is the story which will destroy America’s banking accounts. It is the story that spells the beginning of the end of America’s financial empire. This is the end of the America’s financial empire and NOBODY is talking about it. What is that story? First, the prerequisite background.

Our Crushing Debt

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And this will be looked at as the good ole’ days.

Nearly every publication estimates the derivatives debt to be in the range of one quadrillion dollars to $1.5 quadrillion dollars. Conservative estimates tell us that this derivatives debt, that has been assumed by the governments of the world, is at least 16 times the entire value of the assets of Planet Earth. This generation cannot pay off this debt. Your children, grandchildren and even great-great-great-great-great grandchildren cannot pay off this debt. If the status quo were to remain in place this debt could not be paid off in the 25th century, the 30th century, nor the 50th century. My estimates place the interest on the debt to exceed the entire value of the world’s assets and the interest is increasing far faster than the governments of the world can service the debt. Who is the debt owed to? It is owed to the first movers, the owners of the central banking system. If you want an identifiable target, let’s call the debt owners of the planet the Bank of International Settlement (BIS) along with their henchmen at the World Bank, the International Monetary Fund and their minions at the United Nations. The BIS is collapsing its own banking empire in order to usher in a New World Order which will be discussed later in the article.

The world’s economy has been dealt a fatal blow from which it cannot recover. No amount of budget, belt tightening will ever change this fact. the economy of every nation will fail including the United States and there is NOTHING that can be doneto alter that fact! We could literally be taxed at a 100% rate and the derivatives debt and the interest on this debt will continue to increase faster than the nations can pay the debt down.

Bank of America Case In Point

In an obscure, but well reported 2011 event, Bank of America announced it was shifting derivatives in its Merrill investment-banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC. This was announced as a news blurb in the main stream media and was prominently reported in the The Daily Bail

This was the single biggest financial event in the history of America. It was bigger than the 1929 stock market crash and it was bigger than the beginning of the bail outs in 2008, but it did not received the banner headlines that it should have received. What does this mean? It means that the Bank of America’s European derivatives are now going to be “insured” by U.S. taxpayers and its two most important financial institutions, the Federal Reserve and the FDIC. What is even more distressing is that the Bank of America did not even seek or receive regulatory approval for this action. This action was simply acted upon on behalf of frightened counterparties. Under the Federal Bankruptcy Act of 2005, the counterparties derivatives debt receive “super priority” when it comes to the disbursement of FDIC insurance payments to failed banks. Where do the rest of us stand in terms of reimbursement for a failed bank? We, the account holders in our banks, are in last place. In short, when your bank fails, your money is gone.

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Just how serious is the derivatives debt for the Bank of America? The Daily Bail reported that this was a “direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input . . . ” The estimated total of derivatives debt tied around the neck of Bank of America is a little under $80 trillion dollars and is growing exponentially because of the interest payments. And yet, there is another shocker, JP Morgan Chase is receiving the same undue government benefit with $79 trillion of its national derivatives debt guaranteed by the FDIC and Federal Reserve. What this means for you and me is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in insurance derivatives contracts, labeled as credit default swaps (CDS) which were sold by Bank of America and JP Morgan. This is when you will lose all control over your money and ultimately your life, if you are not prepared ahead of time.

As Plain As the Nose on Your Face

When the derivatives debt reaches the point where it causes our debt load to be so great that we cannot even service the interest, which is now $505 trillion dollars as per Michael Snyder, all financial institutions will fail. All governments will go into default. If the Federal Reserve engages in “print money out of thin air policy” to cover the insurmountable debt, as they did with the bailouts in 2008, the resulting hyperinflation will make the German Weimar Republic seem like a prosperous economy. And do you think your money is safe because of the FDIC? Let me repeat, the FDIC, by law, must first pay the derivatives counterparties.

Since the derivatives debt exceed the world’s total wealth by a factor of at least 16, do you now understand how and why you are not getting your money back when EVERY bank fails in the near future?

Just the debt insurance that Bank of America and JP Morgan Chase have obtained from the American people totals nearly $160 trillion dollars. Before you accuse me of being paranoid, first explain how that debt can be paid? It cannot be paid back, ever! Why? Because the U.S. government only takes in about $2 trillion dollars per year. Since we no longer have any meaningful tariffs on foreign imports. Thanks to the free-trade agreements, the people of the United States have no way to pay back this money. However, the banksters are grasping for breath as they die on the vine. However, they will not go down without a fight.

They are delaying the inevitable crash which will take them down with us. So, they are trying to keep their heads above water by stealing your bank accounts, your pensions and 401K’s. When your money is gone and your life is destroyed, the one solace we can take is that Wall Street will follow us right into the gates of hell as they will not survive either, and this is all by design. The purveyors of the central banking system are as evil as they come. They have set into motion the derivatives scheme so as to destroy all civilization so they can remake this planet in their own twisted image of their conceptualization of a Brave New World (order).

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The Rest Of The Story Here

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SITUATION CRITICAL: Debt Bubble Is Cracking, MILLIONS WILL DIE. By Gregory Mannarino

Here's The Link To The Greg Hunter Interview

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Dave Hodges Interviews Steve Quayle on Jade Helm, Red Lists, the Attacks Upon the Church and CERN

08 Jun, 2015 by Dave Hodges

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Steve Quayle

Steve Quayle was Dave’s featured guest on Sunday evening as Steve brought the audience up to speed on the true intent of Jade Helm, the overall demise of the Christian Church and what is really going on with CERN and the dire threats posed by this project as Satan’s minions literally are trying to open up the gates of hell.

Many from the audience commented that this was one of the most important shows ever broadcasted by The Common Sense Show in its nearly 8 years of existence.

Not only did Steve point out the dangers that we as Americans face in our near future, he educated the audience on practical and spiritual strategies for surviving the present challenges.

The riveting two hours of this interview are available at the following links.

Click Here To Listen To The Entire Interview

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TABLE 9 :Sorry to be a buzzkill, but today’s jobs numbers are not great. The job market sucks. Wages suck. The BLS will lie and obfuscate until morale improves. The MSM will regurgitate the lies. So it goes.

TheBurningPlatform.com

It seems the mainstream media is giddy with excitement over the 280,000 jobs supposedly created in May. The markets aren’t so happy, as good news is actually bad news. What excuse will Yellen and her fellow Wall Street puppets at the Federal Reserve use to not increase interest rates from emergency levels of 0.25%? The ten year Treasury rate immediately skyrocketed to 2.43% in seconds. It was at 1.64% in February. That’s a 46% decline in price in four months. Do you still think bonds are a safe investment? Guess what is tied to the 10 Year Treasury rate? Mortgage rates. There goes the fake housing recovery. Artificially high prices, higher mortgage rates, and young people unable to buy sounds like a perfect recipe for collapse.

The MSM is cackling about the 280,000 new jobs, but you won’t hear them mentioning that the number of unemployed people went up by 125,000 as 208,000 people the BLS classified as not in the labor force last month decided they were in the labor force this month. What a crock. At least 20 million of the 93 million classified as not in the labor force can or will work, therefore they are unemployed.

One month does not make a recovery. Let’s see what the YTD numbers show:

Since January, 594,000 more Americans are employed, an average of 149k per month. Considering the working age population has gone up by 732,000 since January, why is anyone crowing?
The BLS drones actually expect you to believe the unemployment rate has fallen from 5.7% in January to 5.5% today, because 442,000 Americans decided to voluntarily exit the labor force. That’s a hoot.
The really good stuff is buried in Table A-9 of the BLS data dump. See for yourself:

http://www.bls.gov/news.release/empsit.t09.htm

As the MSM hacks and government apparatchiks try to convince you the jobs market is booming, Table A-9 tells a different story. Here is what is revealed:

The number of working age Americans went up by 2.8 million in the last year, or 236k per month. The number of new jobs must average 236k per month just to stay even. In the last year the economy added 2.9 million jobs, slightly above the workforce growth, but the BLS expects you to believe the unemployment rate plunged from 6.3% to 5.5%. Hilarious!!!
It’s the breakdown of jobs by age that really screams out. It is a known fact that people in the 45 to 54 age bracket are in their prime earning and spending years. In the last year the number of employed 45 to 54 year olds has DECLINED by 67,000. It DECLINED in May by 51,000. It has DECLINED by 187,000 since February.
It is a known fact that people over 55 dramatically reduce their spending as they approach and enter their retirement years. The Boomers have added 824,000 jobs in the last year, or 28% of all the new jobs added.
Only 117,000 jobs were added in the 35 to 44 year old bracket in the last year. So the age brackets that do the most spending in the country (35 to 54) have a net increase of 50k jobs in the last year. That is 1.7% of the total jobs added.
The remainder of the new low paying jobs are going to young people who are in debt up to their eyeballs. Now you should understand why there is no real recovery. The people who normally spend the most aren’t getting jobs. The people who don’t spend or can’t spend are getting the bulk of the low paying service jobs.

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Of the 2.9 new jobs created in the last year, guess how many are classified as self-employment jobs? How about 935,000. That’s right. Your new job selling shit on Ebay or cutting three lawns per week is counted as a new job by the BLS drones. What a load of bull.
There are also 7 million people who hold multiple jobs. That is a sure sign of economic progress.
Almost 300k of the new jobs added in the last year were part-time shit jobs. 205k of the 464k jobs added since March are part-time jobs.
Sorry to be a buzzkill, but today’s jobs numbers are not great. The job market sucks. Wages suck. The BLS will lie and obfuscate until morale improves. The MSM will regurgitate the lies. So it goes.

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Hagmann and Hagmann Interview Dave Hodges About The Threats From Within

02 June 2015

Few people in the alternative media have investigated, researched, dissected and reported on the military operation known as Jade Helm 15 as extensively as Dave Hodges, host of The Common Sense Show and author of exclusive investigative reports at his web site of the same name. He has been fighting the media campaign waged against him in the trenches by the corporate media to marginalize him and his assail his findings, yet his investigative reports have been so well documented, their efforts ultimately fail. His revelations make him a danger to the military-industrial complex. How does Jade Helm factor into the plans of the global elite and their desire to reduce the global population by 90%? Jade Helm will be the new national police force which will usher America into it new and very ominous and new era.

You Can Listen To The Entire Interview Here

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Dave Hodges Interviews Doug Hagmann on Jade Helm-This Is a Must Listen!

01 Jun, 2015 by Dave Hodge

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An athlete dreams of winning the championship in the last game that they will ever play and then walking off into the sunset having nothing more to accomplish in their career. When I interview someone like Steve Quayle and John B. Wells and the many other great ambassadors for our movement, that is how I feel after I sign off. On May 31st, I got to experience that feeling as I interviewed Doug Hagmann of the Hagmann and Hagmann report.

Show Topics

Doug and I have extensively researched Jade Helm, the unprecedented “drill” to snatch “Red Listed” political dissidents using Special Operations Forces. Jade Helm also calls for the full implementation of martial law and Jade Helm is also assisted by the 82nd Airborne and an assortment of various Marine units.

The most disturbing topic we discussed was the planned 90% depopulation of the American people, as per the CIA front group, Deagel and the Obama Administration’s America 2050 report in which group is projecting that America’s population will be 66 million by the year 2025.

Through the course of the interview we touched on Obama’s real background through the former FBI special informant, the late Larry Grathwohl’s eyes. We compared notes on how the resident alien at 1600 Pennsylvania Avenue is purposely leading this nation down several paths of destruction.

Doug shared his thoughts on how some strategies on how to evade capture when the Red List goes live.

Interference From the NSA

Whenever, I do an interview of this magnitude, I always worry about NSA interference. When I did the Kate Dalley interview on Utah’s Fox News Radio, I was taken off of the air two separate times. When I interviewed former Army Special Operations Psyops officer, Scott Bennett, we lost one hour of satellite and live stream servers in an unprecedented take down. The only thing that survived that hour was the “listen by phone option” and our archives for the show. On the May 31st Hagmann interview, my audio was cut as we entered the show for my introduction, and I was flying blind. Fortunately, my broadcast equipment comes equipped with a secondary system that I was able to switch to, otherwise, I would not have been able to interview Doug. The broadcast system and the related equipment returned to normal in our third hour, after the Doug departed. The same exact thing happened in the Scott Bennett interview.

I invite you to listen to one of the most informed men our time in the following two hour interview. You may lose sleep, but you will be informed as to some of the challenges and dangers which lies ahead for the American people.

You Can Listen to The Entire Interview Here

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