Wednesday, June 18, 2014

Marc Faber’s Chilling Warnings About The United States

"Faber:  “Well I think we have had in the 70’s rapidly escalating commodity prices, and in some cases they went up much more than what we’ve seen so far in the last ten years.  Of course the financial position of the US is much worse than what we had in the 70’s....

“In the 70’s, total credit as a percent of the economy was just at 140%, we’re now at 379% and we have the unfunded liabilities which we didn’t have at that time.  So I would say the financial position of the US has continuously worsened over the last 30 years.

If you print money everything will go up ... and now the money printing doesn’t go into housing because we have an oversupply of housing, but it goes into equities and for Mr. Bernanke unfortunately into commodities.  And this is lifting the cost of living of the median household, of the typical household in the US. ..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/6/18_Marc_Fabers_Chilling_Warnings_About_The_United_States.html

Here Is The Chart That Has The Central Planners Concerned

"With global stock markets hitting new recent and in some cases all-time highs, the spread between the bulls and bears is in incredibly dangerous territory as shown in the remarkable sentiment chart below.  Bullish sentiment is at extremes as the markets have traded near highs...


The spread between the bulls and bears narrowed fractionally to 45.2%, from 45.4% a week ago. Recent readings have been above 35% signaling elevated risk and the last four differences were above 40%. It was 46.4% at the end of 2013 and stocks sold off to start this year. By early February the difference had narrowed to 24.4%. The last favorable spread occurred in August 2013 at 13.4%, close to the 10% (or less) reading that allows for broad buying. Bears haven't outnumbered bulls (negative spread) since October 2011."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/6/18_Here_Is_The_Chart_That_Has_The_Central_Planners_Concerned.html

Sentiment Chart


Monday, June 9, 2014

Russian Companies Plan to Denominate More Trade in Renminbi

"The lead story in tonight’s Financial Times is Russian companies prepare to pay for trade in renminbi, on how Russian companies are seeking to protect themselves from the impact of possible increasing US sanctions against Russia by denominating more of their foreign transactions in the renminbi and other non-dollar currencies.
The critical question is: how serious a development is this? The short answer is that there is less here than there appears to be. In general, the eagerness to see a declining and increasingly aggressive and inept hegemon get its comeuppance has led a lot of commentators to look forward to the demise of the dollar. However, changes of currency regimes are protracted affairs that typically entail a great deal of instability.
Nevertheless, the US’s deliberate and heavy-handed use of its influence over the international payment system to engage in economic warfare is leading countries like Russia and China to look more seriously than they would have otherwise into to building up independent payment and financing networks. Here, the Rothchilds were far shrewder players. Precisely because they knew their ability to make and break governments would lead to resentment and challenges, they went to some lengths to reduce the visibility of their role in state affairs.
Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers..."

at  http://www.nakedcapitalism.com/2014/06/russian-companies-plan-denominate-trade-renminbi.html

Thanks Draghi: Spanish 10 Year Yield Slides Below US

"Earlier today something happened which we haven't seen since a very brief period of time in 2010, and then going all the way back to 2007: Spanish 10 Year bond yields tumbled below those on US 10 Year Treasurys.
So is this an indication that the Spanish bond market is suddenly safer, and more credible than that of the US? Of course not. All we are seeing is merely the manifestation of the latest ECB carry trade pushing local banks not to lend the ECB's cheap money out to consumers, but to engage in yet another Draghi-subsidized carry trade..."

at http://www.zerohedge.com/news/2014-06-09/thanks-draghi-spanish-10-year-yield-slides-below-us

Deutsche Warns Markets Have Left The "Complacency" Phase, Have Entered Full Blown "Mania"

"With a closing P/E ratio over 17 and a VIX under 11, Deutsche Bank's David Bianco is sticking with his cautious call for the summer. Their preferred measure of equity market emotions is the price-to-earnings ratio divided by the VIX. As of Friday's close, this sentiment measure has never been higher and is in extreme "Mania" phase. Deutsche's advice to all the summertime-'chasers' - "wait for a better entry."
Via Deutsche Bank,
We find the current PEs demanding.

S&P median PE at 18.9, non-financial PE at 18.1 and trailing PE at 17.5 are all elevated vs. history.

And the P/E to VIX ratio suggests we have shifted from compacency into mania...


at http://www.zerohedge.com/news/2014-06-09/deutsche-warns-markets-have-left-complacency-phase-have-entered-full-blown-mania

What Is Driving The Market Right Now According To Mainstream Media

"We are sure somewhere deep in the bowels of mainstream media's list of 'personalities', they will find a bullish (contrarian) excuse for the fact that such a mainstream media channel as CNN has expressed the emotion driving the market right now is... "Extreme Greed." For the rest of the 'irrational' investing public (who were all selling last month), it is time to watch in awe as yet another self-created spectacle of insanity unfolds (with no one seeing it coming).


CNN Money's model consists of 7 indicators...

We can only imagine the Fed is in full panic mode by now...
The Fed realizes investors do not act rationally... blowing up their models entirely..."

at http://www.zerohedge.com/news/2014-06-09/what-driving-market-according-mainstream-media-extreme-greed

Jim Rogers Warns about The Artificial Ocean of liquidity

"What worries me the most is that for five or six years, all the major central banks have been printing huge amounts of money. It's the first time in recorded history that we have the Japanese, British, European and Americans all printing money at the same time. So we have this artificial ocean of liquidity, which is making markets do well, but it's not doing much for the economy worldwide. When it ends, we will all pay a terrible price..."

at http://jimrogers1.blogspot.com.tr/2014/06/jim-rogers-warns-about-artificial-ocean.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+blogspot/WOHK+(Jim+Rogers+Blog)

Friday, June 6, 2014

America’s Late Imperial Dilemma

"US President Barack Obama is under attack – from so-called liberal hawks, more or less to the left of center, as well as from active interventionists on the right – for being a weak president, leading a war-weary (even world-weary) America in retreat.
Obama’s critics, whether on the left or the right, believe that the United States has a unique calling to impose its will on the world. The only difference is that the former justify their views with talk of democracy and human rights, while the latter do not need any such justification, because, after all, America is the greatest country on earth.
Either way, the premise that the US should lead forcefully rests on the idea that without a benevolent hegemonic power to police the world, chaos will ensue and more malevolent forces will take over. This opinion was expressed most clearly in a recent article by the conservative foreign-policy thinker Robert Kagan.
Kagan’s argument is that other countries cannot be relied upon to behave responsibly without strong US leadership. Like other hawks, he warns not only that dictators will behave badly if given the chance, which is certainly plausible, but also that democratic allies need to be kept in their place by a firm hegemonic hand.
In East Asia, for example, China must be “hemmed in” by strong US allies. But if Japan, America’s main ally in the region, were “much more powerful and much less dependent on the United States for its security,” it, too, should not be trusted.
Kagan may be right in thinking that a precipitous US retreat from East Asia could have dangerous consequences. But this argument has the familiar whiff of the late stages of empire. The European imperial powers of the twentieth century would periodically hold out the distant prospect of independence to their colonial subjects – but not yet, not before they were ready, not before their Western masters had educated them to take care of themselves responsibly. How long this education might take was anybody’s guess.
That is the paradox of imperialism. As long as the colonized are under the imperial cosh, they can never truly be ready, because the authority to run their own affairs, responsibly or not, was taken away from them.
Empires can impose order and stability for a long time; but imperialists – rather like many Americans today – become tired, and their subjects grow restless. The imperial order becomes brittle, and, as Kagan rightly notes, when the old order finally breaks down, mayhem often follows..."

at http://www.project-syndicate.org/commentary/ian-buruma-defends-barack-obama-s-retreat-from-pax-americana#PAy1SM52CF1ldjO1.99

No, The Surge In Treasurys Wasn't Due To "Pension Fund Buying"

"...So, confusion.
But one thing is apparently clear: anyone who wants to blame the constant contrarian buying in Treasurys (but... but... the economy is improving) on exogenous factors or reverse rotations, has so far been proven wrong. Which means the one most probably option still remains on the table: bonds are simply being bid because the economy continues to grind slower, despite what Fed-manipulated equities are telegraphing, and until there is real, credible proof that the economy is once again improving, expect the pundits to continue scratching their heads or other parts of their bodies."

at http://www.zerohedge.com/news/2014-06-06/no-surge-treasurys-wasnt-due-pension-fund-buying

Welcome to the Currency War, Part 16: Interest Rates Go Negative

"This morning the European Central Bank tried something different. As Bloomberg reported:

Draghi Takes ECB Deposit Rate Negative in Historic Move

The European Central Bank cut its deposit rate below zero and said it would announce further measures later today as policy makers try to counter the prospect of deflation in the world’s second-largest economy.
ECB President Mario Draghi reduced the deposit rate to minus 0.10 percent from zero, making the institution the world’s first major central bank to use a negative rate. Policy makers also lowered the benchmark rate to 0.15 percent from 0.25 percent.

The promise of further measures today “has stoked up hopes that the ECB is going to unleash a huge bazooka on the market in the press conference,” said Philip Shaw, chief economist at Investec Securities Ltd. in London. While he thinks that quantitative easing is “very unlikely” now, “it may well be that what the ECB just said is stoking up hopes that QE could be on the cards after all...”

at http://dollarcollapse.com/currency-war-2/welcome-to-the-currency-war-part-16-interest-rates-go-negative/

Jim Rogers : America will Collapse too

"SS: So, if you’re saying that other players will move away from the dollar eventually, where does that leave the American economy?
 
Jim Rogers : The US has been the world’s reserve currency, has had the world’s medium of exchange and so far we’ve been able to do a lot of things because we can just print more US dollars. We have a huge balance of trade deficit; we have huge government deficits, because we can print more money. If there comes a time that we cannot print money, when the world will not just take US dollars because we say “here they are!” – then that cripples America in many-many ways. The Pentagon, the Defense Department of the US has already said that the deficit in the US is a major potential weakness from the military point of view. Just recently, the space people said “every country in the world has eventually collapsed” and the way America is going, we might collapse too. This is not me, this is the Defense Department of America, and this is the Space Agency of America saying these things. If you read history, Sophie, it’s true, it’s correct. When people do not have the money that they used to have – they’re limited in many ways. You cannot have as many soldiers, you cannot have as many airplanes, you cannot send ships all over the world, because somebody has to pay for it, and if you don’t have the money to pay for it anymore, you’re in trouble.- in a recent May 2014 RT interview"

at http://jimrogers1.blogspot.com.tr/2014/06/jim-rogers-america-will-collapse-too.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+blogspot/WOHK+(Jim+Rogers+Blog)

Thursday, June 5, 2014

A Chinese Monroe Doctrine?

"Chinese Foreign Minister Wang Yi’s upcoming visit to India will include his first meetings with India’s new government, including Foreign Minister Sushma Swaraj and, more important, Prime Minister Narendra Modi. But the trip is about more than getting acquainted. The leaders of both countries will be taking one another’s measure, and their conclusions will determine how the relationship between the world’s two most populous countries evolves.
In some ways, the bilateral relationship is already moving in a positive direction, especially on the economic front. But, as trade imbalances favoring China become apparent, India is growing increasingly frustrated. Wang, an establishment figure well versed in Indian affairs, will make every effort to downplay these imbalances and promote deeper ties..."

at http://www.project-syndicate.org/commentary/jaswant-singh-believes-that-india-has-no-choice-but-to-challenge-china-s-hegemonic-ambitions-in-asia#6p2coRIuHLi2LyQc.99

Mike Maloney - New Global Monetary System Coming

"Yes Vanessa Collette is back! Oh and she talks to Mike Maloney about coming changes in the global monetary system and how gold plays a critical roll in wealth protection. From Cambridge House"

at: http://ausbullion.blogspot.com.tr/2014/06/mike-maloney-new-global-monetary-system.html#sthash.VOcAabje.dpuf

Wednesday, June 4, 2014

Bull / Bear Spread Surges Into Even More Dangerous Territory

"The spread between the bulls and bears expanded further to 44.8%, from 41.0% a week ago. Recent readings have been above 35% signaling elevated risk and the last two differences were above 40%. It was 46.4% at the end of 2013 and stocks sold off to start this year. By early February the difference had narrowed to 24.4%. The last favorable spread occurred in August 2013 at 13.4%, close to the 10% (or less) reading that allows for buying. Bears haven't outnumbered bulls (negative spread) since October 2011..."

Sentiment Chart


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/6/4_Bull___Bear_Spread_Surges_Into_Even_More_Dangerous_Territory.html

Tuesday, June 3, 2014

The West Is Studying The Flashpoints That Could Lead To A New 'Great War'

"WASHINGTON (Reuters) - After more than a decade focused on combating Islamist militancy, Western military planners are once again contemplating potential war between major powers - and how to prevent one happening by accident.
Although the Cold War rivalry with Moscow has never been forgotten, current and former Western officials say Russia's annexation of Crimea has NATO powers tearing up strategic assumptions and grimly considering both conventional and nuclear fights.
As late as March, most NATO powers - with the exception of eastern members such as the Baltic States long worried by Moscow - had assumed Europe itself faced no imminent military threat.
It is still the case that few believe Russia would attack any NATO state, but, in order to deter, Western officials say they must consider and plan for the contingency.
The threat to U.S. allies in the Pacific from a stronger China has also focused military minds on how to contain the risks there, and ensure any localized conflict does not spill over into global war.
In a major foreign policy speech at the West Point military academy last month, President Barack Obama spoke mostly on counterterrorism and the Afghanistan withdrawal. But while he said the risk from other nations was now much lower than before the Berlin Wall fell, he made clear it still existed.
"Regional aggression that goes unchecked, whether in southern Ukraine or the South China Sea or anywhere else in the world, will ultimately impact our allies and could draw in our military," he told graduating cadets.
Tensions with Moscow and Beijing have increased faster than almost anyone in government in Washington expected. They are expected to dominate a meeting between Obama and Russian President Vladimir Putin in Normandy for the 70th anniversary of D-Day later this week.
Last weekend's annual Shangri-La Dialogue strategic conference in Singapore, meanwhile, showcased the growing gulf between Washington and Beijing on issues from regional maritime disputes to cyber security.
In recent weeks, current and former officials say, the Obama administration has been insistently reassuring allies and signaling foes where Washington's true red lines are.
Washington might not be prepared to act militarily in Ukraine but an attack on a NATO state such as one of the Baltics or a formal Asian ally like Japan, the Philippines or Australia would commit it irrevocably to war. Those treaty obligations are not new, but U.S. officials say it is important to make clear that they are taken extremely seriously.
They hope that will reduce the risk of an accidental war where a state takes action wrongly assuming other powers will not respond.
"It's not that the leadership in Russia or China is looking for a war - and the United States certainly isn't," says Kathleen Hicks, a U.S. undersecretary for defense until last July who now works for the Center for Strategic and International Studies in Washington.
"The real worry is miscalculation."

GREAT WAR

One hundred years after the start of World War One, books on the period have become increasingly popular in Washington, Whitehall and NATO headquarters in Brussels, current and former officials say, and not purely for their historical interest.
In June 1914, the killing of Austria's Archduke Franz Ferdinand by a Serb nationalist triggered actions and alliances that brought war in barely a month.
Now, experts say flashpoints could range from a clash over disputed South China Sea islands or ethnic strife in Russia's former Soviet neighbors to a wrongly attributed cyber attack.
Even as Washington reassures allies, Moscow and Beijing have asserted their might against Ukraine and Vietnam which lack such formal alliances. The risk, experts say, is that they become overconfident and misjudge.
"The parallels with 1914 can definitely be overstated," said Nikolas Gvosdev, professor of national security studies at the U.S. Naval War College.
"But they do show us that war can start through unintended consequences and an economically interdependent world does not necessarily stop it from happening."
As in 1914, no one really knows what a modern great war would be like.
While much military thinking assumes conflict would remain conventional, nuclear powers have kept their atomic war planning up to date, maintaining target lists for mutually assured destruction, current and former officials say.
Cyber attacks, some experts say, could be almost as destructive, as could the effects on global trade in an unprecedentedly interconnected world.
Meanwhile, some of the systems supposed to prevent conflict may be starting to weaken.

WEAKENED LINKS

U.S. officials had embarked on a campaign to build formal and informal communications channels with Beijing, mimicking the hotlines and procedures set up with Russia.
Moscow and Washington have used those systems themselves in recent months to notify each other of missile tests and reconnaissance flights over each other's territory.
Links with Russia, however, have weakened this year as NATO states canceled conferences and military exchanges with Moscow in protest at the annexation of Crimea.
Contacts with China have also deteriorated in the last month, particularly since Washington indicted five Chinese officials for cyber espionage, a charge Beijing denies.
A near collision between U.S. and Chinese warships in January, a mock Russian attack on a U.S. destroyer in the Black Sea in April and periodic confrontations between long-range bombers and other aircraft show the risks, experts warn.
Last week on Japan and China accused each other of "dangerous" and "over the top" actions after warplanes came within a few dozen meters.
Any additional challenge to the West, some analysts say, is that both Russia and China know Washington would struggle to handle simultaneous confrontations.
U.S. forces are spread around the world while Moscow's and Beijing's, while smaller, are almost exclusively focused on their immediate neighborhood. Since 2008, they have increased military spending 30 and 40 percent respectively, according to London's International Institute for Strategic Studies.
The 2012 Asia "pivot", which saw the U.S. Navy in particular moving to increase its Pacific footprint, aimed to make crisis response easier.
In Europe, in contrast, NATO has little developed thinking beyond its post-Crimea strategy of putting small numbers of U.S. troops and jets on the frontline in eastern member states they fear Moscow might target next.
Until Ukraine, European states had viewed their primary military focus as occasional intervention, peacekeeping and counterinsurgency in the Middle East and Africa.
"We are in uncharted territory," said one senior Western official who spoke on condition of anonymity. "It means ... reconstituting high end fighting skills and properly thought through doctrine for both conventional and nuclear deterrence."
(Editing by Robin Pomeroy)"

at http://www.businessinsider.com/r-west-ponders-how-to-stop---or-fight---a-new-great-war-2014-03#ixzz33bIBkpzS

Wall Street Firms Using Their Dark Pools To Make Markets in Their Own Stocks

"These self-named dark pools are operating as private exchanges, with a faux type of specialist system managing the order book, with all the insight and power that it entails.  The layman may not quite comprehend this, but anyone familiar with Wall Street operations and history will certainly do so.

That they are trading for their own parent company stocks, and possibly for their own books, ought to raise more than a few eyebrows.  

We ought to have internalized the lesson by now that markets are not naturally efficient and self-regulating.  But even moreso when the business of price setting and order matching is being done in darkness, and apparently with lax regulatory oversight and institutionalized conflicts of interest.

The lack of integrity in the Western financial system must seem appalling to anyone whose ears are not firmly taped to the corporate news feeds droning out of New York and London to their jaded listeners.  Another lie, another fraud, another abuse of oaths and trust.    Tra la, tra la, comme ci comme ça.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

After Charges of Running a Price Fixing Cartel on Nasdaq in the 90s, 
Wall Street Banks Are Now Trading Their Own Stocks in Darkness
By Pam Martens and Russ Martens: June 3, 2014

On July 17, 1996, the U.S. Justice Department charged the biggest names on Wall Street, names like Merrill Lynch, JPMorgan and predecessor firms to Citigroup, with pricing fixing on the electronic stock market known as Nasdaq...

Yesterday we learned that the very same Wall Street firms charged with price fixing in the 90s have somehow conned their regulators into allowing them to own their own dark pools – effectively unregulated stock exchanges – and make markets in the stock of their very own Wall Street bank.

The Financial Industry Regulatory Authority (FINRA) – a self-regulatory Wall Street body (which under a previous name was responsible for missing the Nasdaq price fixing for more than a decade) released trading data yesterday for the dark pools operating the week of May 12 – 16. This was the first time such data has been released. The data releases are set to continue..."

Read the entire article with the details here."

at  http://jessescrossroadscafe.blogspot.com.tr/2014/06/wall-street-firms-using-their-dark.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+JessesCafeAmericain+(Jesse%27s+Caf%C3%A9+Am%C3%A9ricain)

Smoke and Mirrors Hide the Collapse in Corporate Profits

"Did you notice the collapse in corporate profits? 

John Hussman, Steen Jakobsen, and Albert Edwards at Society General did. Hussman tweeted the following chart this morning.


http://globaleconomicanalysis.blogspot.com/2014/06/smoke-and-mirrors-hide-collapse-in.html#DO5KZwfcLYslmWK3.99

The Minsky Moment Meme

"Today you can’t go 10 minutes without tripping over an investment manager using the phrase “Minsky Moment” as shorthand for some Emperor’s New Clothes event, where all of a sudden we come to our senses and realize that the Emperor is naked, central bankers don’t rule the world, and financial assets have been artificially inflated by monetary policy largesse...."

at http://www.zerohedge.com/news/2014-06-03/minsky-moment-meme

Monday, June 2, 2014

Inequality Has Become The Achilles Heel Of Democracy

"Recent weeks have been all about elections and broken promises: from early April to mid-May, half-a-billion Indians went to the polls in what many described an astonishing display of democratic prowess. Later, millions of European citizens elected their representatives to the often-criticised and never much-loved European Union parliament.

Meanwhile, Australian prime minister Tony Abbott decided to break many of his 2013 election promises in his first budget. Many have rightly seen in that document an open assault on the economic welfare of low-income households, and more than a courteous nod to the rich. If the budget is approved, the divide between rich and poor in Australia will most likely increase..."

Read more: http://www.businessinsider.com/inequality-has-become-the-achilles-heel-of-democracy-2014-6#ixzz33VgDRv4Y

The Destroyer Of Fake "Recoveries": Unintended Consequences

"Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Destroy the market's ability to price assets, risk and credit, and you take away the essential information participants need to make rational, informed decisions.
A correspondent recently summarized why unintended consequences eventually destroy all politically expedient strategies that temporarily prop up a systemically unsustainable Status Quo:
"Unintended consequences almost always equal or exceed the benefits of whatever your temporary gains were in a complex system. We see this over and over again, in all sorts of different complex systems."
In other words, all the "kick the can down the road" strategies being deployed across the globe by central states and banks will inevitably backfire because central planning fixes always trigger systemic consequences that were unintended by the planners, who are fixated on minimizing the political pain of powerful constituencies, not understanding or repairing the real problems.
Example #1: The Federal Reserve "saves the Status Quo" by lowering interest rates to zero, eliminating mark-to-market valuations of collateral and opening the credit spigot to banks and financiers.
Intended consequences: A) transfer wealth from savers who once earned substantial interest on their savings to the banks, which can borrow money for near-zero and loan it out to businesses and consumers at fat spreads, reaping billions of dollars that once flowed to savers.
B) By making cash into trash (i.e. it earns no interest, effectively losing value in a 2% inflation environment), the Fed intended to push everyone with cash and/or credit to put their money in risk assets such as stocks and real estate.
Unintended consequences: A) Now that everyone has been pushed into stocks and real estate, valuations are once again at bubble heights--and bubbles always pop, destroying every participant who has been lulled into believing this bubble will never pop because "the Fed has my back."
B) By allowing mark-to-fantasy valuations of collateral, the Fed hasn't cleared the credit system of impaired debt: it has enabled an expansion of bad debt and eroded the fundamental credibility of the system.
C) By enabling the wealthiest slice of America to borrow essentially limitless sums for free, the Fed has fueled wealth disparity, as the super-wealthy can buy rentier assets for nearly free with Fed-created credit, outbidding everyone in the 99.5%.
D) In becoming the buyer of last resort for Treasury bonds and home mortgages, the Fed has destabilized the bond and mortgage markets and undermined the U.S. dollar. As a result, the Fed has to taper its buying lest it end up owning the entire short-term Treasury market.
E) By buying $2 trillion in mortgage-backed securities, the Fed (in conjunction with Fannie Mae, Freddy Mac and the Federal housing agencies such as FHA) has essentially socialized the mortgage market in the U.S.-- virtually all home mortgages are now backed or issued byh the government. less than 5% of all mortgages are privately issued and not guaranteed or owned by the government.
Destroy the market's ability to price assets, risk and credit, and you take away the essential information participants need to make rational, informed decisions. By crushing the market's ability to generate accurate pricing information to save the Status Quo from necessary repricing and reforms, the Fed and the Federal government have generated enormously destructive unintended consequences that will not respond to additional politically expedient fixes.
All the other central planning fixes around the world share the same fatal flaw."

at http://www.zerohedge.com/news/2014-06-02/destroyer-fake-recoveries-unintended-consequences