Fed Reverses “Excess Reserve” Policy, Prepare for Higher Inflation

Why a seemingly run-of-the-mill announcement yesterday by Fed chairman Powell might signal a major turning point for the gold market. . . and perhaps ALL markets.

At the end of Fed chairman Jerome Powell’s opening statement for his press conference yesterday he dropped a major surprise on the markets that immediately sent the dollar and stocks tumbling and gold, silver and bonds vaulting higher. All the markets mentioned experienced sudden sharp reversals at the time of the “surprise.” Those trends have carried over to today’s market action.

To understand what caused such a strong reaction in the markets you have to go all the way back to 2009, the credit crisis and the launch of the quantitative easing program. That bail out of the commercial banks pushed more than $4 trillion of printing press money into the U.S. and global economy through Federal Reserve purchases of U.S. Treasuries and mortgage-backed securities. Those purchases left the commercial banks with a boatload of cash and the Federal Reserve with its largest balance sheet procurement in history. At the time, the standard analysis had been that the newly placed cash would migrate to the economy in the forms of commercial and consumer loans, push-up the money supply dramatically and launch a virulent inflation.

It never happened and here’s why:

Instead of leaving those reserves at the commercial banks, the Fed encouraged the commercial banks to redeposit that bailout capital at the central bank as what it called “excess reserves.” Up until Mr. Powell’s low-key reference to excess reserves at yesterday’s news conference, few people had ever heard of this little-known Federal Reserve balance sheet item, yet it consists of almost $1.9 trillion at present and peaked in 2014 at almost $2.7 trillion, and a large percentage of the original bail out. The Fed incentivized commercial banks to maintain those deposits by paying a rate of interest slightly higher than the Federal Funds rate, an advantage it kept in intact from 2009 until yesterday. To make a long and rather complicated story short, the “excess reserves” program in effect sterilized the bailout and kept it from igniting inflation.

All of that though may have changed with Mr. Powell’s low-key announcement yesterday, that the Federal Reserve would move the excess reserve deposit rate at a par with the fed funds rate – a policy that removes the long-standing rate advantage on excess reserves and, in effect, formally signals a deliberate desterilization process. That is why the Fed chairman’s seemingly innocuous statement yesterday caused such an immediate stir. What he signaled is that the Federal Reserve is now interested in incentivizing the banks to take that capital back onto their own balance sheets as reserves so that they can be leveraged and loaned into the economy….

http://www.usagold.com/cpmforum/2018/06/14/why-a-seemingly-run-of-the-mill-announcement-yesterday-by-fed-chairman-powell-might-signal-a-major-turning-point-for-the-gold-market-and-perhaps-all-markets/

 

Russia Warns “Credible Information” Of Impending Staged Chemical Attack In Syria

As the world’s attention was focused on Singapore and the historic Trump-Kim summit this week, and with broad media acknowledgement that Assad has won the war for Syria, the time could be ripe for some kind of major event to jolt the globe’s focus back to the war, now in its seventh year, which could be slowly winding down.

It seems to occur every time the Syrian Army is on a trajectory of overwhelming victory: an ill-timed and strategically nonsensical mass chemical attack on civilians supposedly ordered by Assad — inevitably giving the West an open door for military intervention, new rounds of crippling sanctions, and yet more international media condemnation heaped on Damascus.

And this week the Russian Defense Ministry has warned of just such a scenario. Russian Defense Ministry Spokesman Igor Konashenkov said early in the week that US-backed Free Syrian Army (FSA) forces are planning a “serious provocation” aimed at justifying a new round of Western coalition missile attacks against Syrian government bases and facilities.

https://www.zerohedge.com/news/2018-06-14/russia-warns-credible-information-impending-staged-chemical-attack-syria

Syrian Proxy Puppets Boasted of Access to Nerve Gas in 2012

http://thoughtcrimeradio.net/?s=syria+gas

Satanic “Kraft” Corporation Feeds Aluminum to Children With A Smiley Face

Or maybe not aluminum, (see below) but definitely not food.

Popular lemonade brand under Kraft Heinz, Country Time, is “taking a stand for lemonade stands” and pledging to help kids cover the costs of city permits when young kids end up getting their lemonade stands shut down and fined.

Kids across the country are getting busted for operating lemonade stands without a permit. We’re taking the lead to #SaveLemonadeStands by paying for kids’ fines + permits this year. For every RT this gets we’ll donate $1 (up to $500,000) to help kids next year + beyond.

— CountryTime (@CountryTime) June 7, 2018

https://www.activistpost.com/2018/06/country-time-stands-up-to-arcane-laws-against-kids-lemonade-stands.html

“Country Time” is not  lemonade.  WTF is the author thinking.  Lemonade is made from lemons.   And the last time I tasted this stuff it was awful, not even a rough approximation to the real thing.

Country Time ingredients (from amazon.com): Sugar, Fructose, Citric Acid, contains less that 2% of maltodextrin, natural flavor, ascorbic acid (Vitamin C), sodium acid pyrophosphate, sodium citrate, magnesium oxide, calcium fumarate, soy lecithin, artificial color, yellow 5 lake, tocopherol (preserves freshness).

Substance Name: FD&C Yellow No. 5 Aluminum Lake

https://www.fda.gov/ForIndustry/ColorAdditives/ColorAdditiveInventories/ucm106626.htm

In industrial production of colorants, the term “lake” is applied to pigments or dyes that are precipitated with metal salts such as aluminum, calcium, barium, or others. Most lake pigments are synthetically produced from coal tar or petroleum.

https://www.ewg.org/skindeep/ingredient/702445/FD%26C_YELLOW_6_ALUMINUM_LAKE/

I’ve been trying to determine whether FD&C yellow #5 lake is precipitated with an aluminum salt or a sodium salt or or something else.   There seem to be variations in the formulation, which in a sense is even more disturbing.

Let me put it this way: taxpayers deserve to have federal food standards that don’t subject nonconsenting children to needless dangers.   But I know that’s not going to happen.

The Potential Risks of Tartrazine

https://www.verywellhealth.com/tartrazine-free-diet-83227

Which Satanic Corporation is in your Food?

Lemonade Terror Plot Foiled, Kids Get Lesson in Subservience

The Psychopathology of the Neocon Movement

Exploitation of trauma and neocon psychology

This week I am joined by Yuval Laor of the Open Minds Foundation, and one of my co-hosts for Open Minds On Air. We discuss the neoconservative movement, the exploitation of trauma, and Israel. Yuval and I start off the conversation with the breaking news that Donald Trump has decided to pull the US out the Iran Nuclear Deal. We talk about what this means for America and the prospect of war with Iran. Yuval gives us his perspective of this as an Israeli-American, and how the public within Israel is reacting to the news. Yuval and I then shift into the neocons who are obviously happy with Trump’s latest pronouncement. We look at their belief system and the psychology of the movement by using Israel as a template. Yuval talks about the continual use and exploitation of the holocaust and the trauma of it with in Israel. He discusses how this has manipulated Israeli society on a psychological level to the point where they view the Holocaust as constantly being right around the corner. We talk about the way that the Israeli state continually traumatizes its youth with regards to the Holocaust. Yuval and I then break down how this is the same method by which the neocons have sought to manipulate people here in the United States.

Later Yuval and I talk about the power of awe and fervor. Again using Israel as an example we talk about “Jerusalem Syndrome” and how it works on people who are not even religious. Yuval talks about John Kerry’s awe moment at Masada as well. We then shift into high fervor people and their inability to view the world outside of a good vs. evil black and white mentality. Yuval explains how the neocons have psychologically fallen into this mindset, and the ways in which it has effected their views on foreign policy. We also address whether neoconservationism is a cult group or a secret society. We also touch on Trump’s psychology and why he is so susceptible to manipulation, particularly by the neocons. Yuval also discusses the concept of a thought-terminating cliché. Yuval then closes out the episode with a very appropriate joke.

https://porkinspolicyreview.com/2018/05/09/porkins-polcy-review-episode-141-exploitation-of-trauma-and-neocon-psychology-with-yuval-laor/

It doesn’t take a huge leap of imagination to see the tie-in with the imprinted primal betrayal, trauma and life-long sexual sensory deprivation resulting from the genital mutilation which has been imposed in Judaism for countless generations, which was introduced as medical quackery in the USA a century ago. Follow the chain of cause and effect and american medicine may well be ultimately responsible for WWIII.

The War on Empathy, Love and Family

Shadia Drury has an extensive interview as an addendum in the “Hijacking Catastrophe” DVD which used to be online.  I hope someone reposts it.   Here’s an excerpt:

Leo Strauss and the Politics of Fear

https://web.archive.org/web/20051027131328/http://globalpublicmedia.com/interviews/377

How the neocons see themselves: