For years, many people have suspected that the New York Fed is more or less controlled by the “too big to fail” banks. Well, now we have smoking gun evidence that this is indeed the case. A very brave lawyer named Carmen Segarra made a series of audio recordings while she was working for the New York Fed. The 46 hours of meetings and conversations that she recorded are being called “the Ray Rice video for the financial sector” because of the explosive content that they contain. What these recordings reveal are regulators that are deeply afraid to do anything that may harm or embarrass Goldman Sachs. And it is quite understandable why Segarra’s colleagues at the New York Fed would feel this way. As a recent Bloomberg article explained, it has become “common practice” for regulators to leave “their government jobs for much higher paying jobs at the very banks they were once meant to regulate.” If you think that there is going to be a cushy, high paying banking job for you at the end of the rainbow, you are unlikely to do anything that will mess that up. (Read More...)
5 U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure To Derivatives
When is the U.S. banking system going to crash? I can sum it up in three words. Watch the derivatives. It used to be only four, but now there are five “too big to fail” banks in the United States that each have more than 40 trillion dollars in exposure to derivatives. Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars we are talking about an amount of money that is almost unimaginable. And unlike stocks and bonds, these derivatives do not represent “investments” in anything. They can be incredibly complex, but essentially they are just paper wagers about what will happen in the future. The truth is that derivatives trading is not too different from betting on baseball or football games. Trading in derivatives is basically just a form of legalized gambling, and the “too big to fail” banks have transformed Wall Street into the largest casino in the history of the planet. When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will cause the global economy will be greater than words can describe. (Read More...)
The Pure Hell At The Heart Of The Ebola Pandemic In Africa Could Soon Be Coming To America
Did you know that the number of Ebola cases in Liberia and Sierra Leone is approximately doubling every 20 days? People are dropping dead in the streets, large numbers of bodies are being dumped into the rivers, and gravediggers can hardly keep up with the the number of corpses that are being delivered to the cemeteries. As you read this, life is pure hell in many areas of West Africa, and now the CDC is warning that things may get far, far worse in the very near future. According to the CDC, the number of Ebola cases could potentially soar to 1.4 million by the end of January. Of course the CDC says that this is a “worst-case scenario”, but for our health officials to even suggest that such a huge number is possible is quite chilling. We are now being told that the fatality rate for this Ebola outbreak has risen to 71 percent, and so most of the “cases” will eventually turn into deaths. If we do eventually see 1.4 million cases of Ebola in West Africa, it is incredibly naive to think that it will not spread to other parts of the globe as well. (Read More...)
This Is About As Good As Things Are Going To Get For The Middle Class – And It’s Not That Good
The U.S. economy has had six full years to bounce back since the financial collapse of 2008, and it simply has not happened. Median household income has declined substantially since then, total household wealth for middle class families is way down, the percentage of the population that is employed is still about where it was at the end of the last recession, and the number of Americans that are dependent on the government has absolutely exploded. Even those that claim that the economy is “recovering” admit that we are not even close to where we used to be economically. Many hope that someday we will eventually get back to that level, but the truth is that this is about as good as things are ever going to get for the middle class. And we should enjoy this period of relative stability while we still can, because when the next great financial crisis strikes things are going to fall apart very rapidly. (Read More...)
Scam Alert: Hospitals All Over America Are Wildly Inflating Medical Bills
The next time you visit a hospital, it is your wallet that may end up hurting the most. All over the United States, it has become common practice for hospitals to wildly inflate medical bills. For example, it has been reported that some hospitals are charging up to 30 dollars for a single aspirin pill. And as you will see below, some victims report being billed tens of thousands of dollars for a non-surgical hospital visit that lasts only a few hours. When something is seriously wrong with us, most of us never stop to ask our health professionals how much it will cost to actually treat us. In that moment, we are desperate and we just want someone to help us. Many doctors and hospitals take full advantage of this by billing their “customers” as much as they feel they can possible get away with. It is a legal scam that is bilking ordinary Americans out of billions of dollars every single year. (Read More...)
The Dow And S&P 500 Soar To Irrational Heights – Meanwhile The Ultra-Wealthy Rush To Buy Gold Bars
Did you know that the number of gold bars being purchased by ultra-wealthy individuals has increased by 243 percent so far this year? If stocks are just going to keep soaring, why are they doing this? On Thursday, the Dow Jones industrial average and the S&P 500 both closed at record highs once again. It is a party that never seems to end, and there are a lot of really happy people on Wall Street these days. But those that are discerning realize that we witnessed the exact same kind of bubble behavior during the dotcom boom and during the run up to the last financial crash in 2007. The irrational exuberance that we are witnessing right now cannot go on forever. And the bigger that this bubble gets, the more painful that it is going to be when it finally bursts. Those that get out at the peaks of the market are the ones that usually end up making lots of money. Those that ride stocks all the way up and all the way down are the ones that usually end up getting totally wiped out. (Read More...)
Nowhere To Hide As Minority Report-Style Facial Recognition Technology Spreads Across America
What is our society going to look like when our faces are being tracked literally everywhere that we go? As part of the FBI’s new Next Generation Identification System, a facial recognition database known as the Interstate Photo System will have collected 52 million of our faces by the end of 2015. But that is only a small part of the story. According to Edward Snowden, the NSA has been using advanced facial recognition technology for years. In addition, as you will see below, advertising companies are starting to use Minority Report-style face scanners in their billboards and many large corporations see facial recognition technology as a tool that they can use to serve their customers better. Someday soon it may become virtually impossible to go out in public in a major U.S. city without having your face recorded. Is that the kind of society that we want? (Read More...)
The Number Of Volcanic Eruptions Is Increasing And That Could Lead To An Extremely Cold Winter
The number of volcanoes that are erupting continues to rise, and scientists cannot seem to explain why this is happening. In 2013, we witnessed the most volcanic eruptions worldwide that we have ever seen in a single year, and this increased activity has carried over into 2014. In recent months, we have seen major volcanoes roar to life in Russia, Peru, Hawaii, Reunion Island, Indonesia, and all over Alaska. It is highly unusual for so many volcanoes to all be erupting at the same time. According to Volcano Discovery, a whopping 34 volcanoes are erupting around the globe right now. This is sending a massive amount of dust and ash into the upper atmosphere, and it may explain why many parts of the planet are experiencing strangely cold weather at the moment. If this trend continues, we could potentially be facing years of crop failures and widespread famines all over the world. (Read More...)