Three Very Disturbing Headlines

Comment:

Maybe this is the “Strategic Shocks” the U.S. Army is worried about….”We the People” deciding to capture, put on trial and then hang the thieves/traders with out permission.

Federal Reserve sets Stage for Weimar-style Hyperinflation

By F. William Engdahl, 15 December 2008

The Federal Reserve has bluntly refused a request by a major US financial news service to disclose the recipients of more than $2 trillion of emergency loans from US taxpayers and to reveal the assets the central bank is accepting as collateral. Their lawyers resorted to the bizarre argument that they did so to protect ‘trade secrets.’ Is the secret that the US financial system is de facto bankrupt? The latest Fed move is further indication of the degree of panic and lack of clear strategy within the highest ranks of the US financial institutions. Unprecedented Federal Reserve expansion of the Monetary Base in recent weeks sets the stage for a future Weimar-style hyperinflation perhaps before 2010.

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Bond Market Expecting Outright Depression

J.D. Steinhilber

If equities have priced in a long, deep recession, the bond market seems to be expecting an outright depression. Despite the promise of trillion-dollar Federal budget deficits and debt monetization (i.e. “quantitative easing”) by the Fed, the 10-year Treasury is 2.75%, the lowest level in half a century.

Five-year inflation protected Treasuries (TIPs) are yielding more than nominal five-year Treasuries, suggesting that Treasury investors expect negative CPI inflation over the next five years!

Fears of default and lack of market liquidity have pushed spreads on municipal and corporate bonds to levels not seen since the Great Depression. AAA rated 30-year municipal bonds are yielding 5.47% at present, which works out to a taxable equivalent yield of 7.6% for a taxable investor in a 28% tax bracket. This is 240% of the current 3.14% yield on 30-year Treasury bonds. Junk bond yields and spreads to Treasuries have never been as high as they are today. It appears that the only remaining bubble in the markets is in Treasuries.

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Third of Hedge Funds Face ‘Wipe Out’ After Slump, Godden Says

By Tom Cahill

Dec. 15 (Bloomberg) — Almost a third of hedge funds will shut or merge after the $1.5 trillion industry posted its worst ever performance this year, according to IGS Group, which advises hedge funds on raising money.

“The failure rate is going to go up, the closure rate is going up, and the merger rate is going up,” IGS Chief Executive Officer John Godden said in an interview in London. “It’s going to be a 30 percent wipe out.”

The number of hedge funds more than tripled in the last decade to a record 10,233 at the end of June, according to Chicago-based Hedge Fund Research Inc. That number will likely tumble after funds dropped 18 percent in the year through November, the worst year since HFR started its Fund Weighted Composite Index in 1990.

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Known Unknowns: Unconventional “Strategic Shocks” in Defense Strategy Development (REPORT)

Brief Synopsis

The author provides the defense policy team a clear warning against excessive adherence to past defense and national security convention. Including the insights of a number of noted scholars on the subjects of “wild cards” and “strategic surprise,” he argues that future disruptive, unconventional shocks are inevitable. Through strategic impact and potential for disruption and violence, such shocks, in spite of their nonmilitary character, will demand the focused attention of defense leadership, as well as the decisive employment of defense capabilities in response. As a consequence, the author makes a solid case for continued commitment by the Department of Defense to prudent strategic hedging against their potential occurrence.

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Jim’s Plan has us Half way there.

Posted: Nov 13 2008     By: Jim Sinclair Post Edited: November 13, 2008 at 2:51 pm

Dear International Friends of Gold,

If you are tired of being had by paper gold DOING WHAT IT DID TO YOU THIS US MORNING, the following is the only course of action to end the games being played at your expense. Gold you take delivery of can be insured and shipped anywhere on the globe by Brinks and other recognized express services.

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Shock and Awe at COMEX
BY ROB KIRBY

This past Friday, Nov. 28, 2008, was first notice day for delivery of the December COMEX [a division of NYMEX] gold and silver futures contracts which trade on the New York Mercantile Exchange. The chart appended below shows that on Friday, 8,600 gold futures contracts @ 100 ounces per contract [and 3,040 silver futures contracts @ 5,000 ounces per contract] were delivered. To try to give some perspective to these numbers the previous delivery month for gold futures was October, 2008 when there were 11,554 deliveries for the entire month – a “big” number by historical standards.

1201.01

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