Sunday, October 27, 2013

Kerry Lutz Of The Financial Survival Network Interviews Me About Treasury Debt, Gold And The Housing Market

I did an interview with Kerry Lutz and his Financial Survival Network's radio show last week.  Kerry's mission is to educate his audience on the truth behind the hype and to understand what's really occurring in our system with the end goal of helping people financially survive what's coming.

The show lasts about 20 minutes and I review the circumstances behind that massive spike in Treasury debt outstanding, the latest developments in the physical gold and silver market and the resumption of the bear market in the housing market.

You can hear the interview here:  Is The Housing Boomlet Over?

Just like many articles, including some Wall Street firms, are now publishing hard data which shows that the stock market - by several metrics - is the most overvalued it's ever been in history - the housing market is currently significantly overvalued, with prices bid up by one-time factors that are disappearing.  It's going to get very ugly out there over the next 12 months.


  1. Shanghai Gold Exchange Physical Delivery 1750 tons YTD

    The SGE is on track to deliver 2125 tons of gold this year in total. This would be 87 % more than in 2012.

  2. Very good interview. well done.

  3. Tight Mortgage Credit May Be Worse Than Crisis, Ranieri Says

    Most lenders no longer offer borrowers the ability to qualify without fully documenting their incomes and assets, and starting next year regulations known as qualified mortgage rules will expose originators to greater legal risks when making loans with payments exceeding 43 percent of their pay or carrying risky features.

    he's the mortgage king and he thinks documenting income is a deterrent to a healthy housing market?????????

  4. Greenspan in dreamland

    I've been on my own little "detective story" for a while now. When I began my weekly chronicle of the credit bubble back in 1999, I argued that tech stocks were not THE bubble but instead only a primary consequence of what was the latest bout of mispriced finance and credit and speculative excess.

    Why did the " crisis" have such minimal impact that one could "barely see it in the GDP"? Well, it's certainly worth recalling that GSE [government-sponsored enterprises such as Fannie Mae and Freddie Mac] securities (debt and mortgage-backed securities) increased US$431 billion in 2000, $642 billion in 2001 and another $547 billion in 2002, an unprecedented $1.62 billion three-year credit distortion that worked wonders - for a while.

    The Fed slashed rates from 6.5% in December 2000 to 1.75% by December 2001 (to the low of 1% in June 2003). Total domestic financial sector borrowings expanded 10.7% in 2000, 10.6% in 2001, 9.6% in 2002 and 10.7% in 2003. Powerful inflationary biases throughout mortgage finance and housing provided the Fed significant capacity to readily reflate system credit.

    Total non-financial system credit growth slowed only modestly after the tech bust, from 1999's 6.2% to 2000's 5.0%. Importantly, Total non-financial credit accelerated to a 6.4% rate during 2001, 7.4% in 2002 and 8.0% in 2003. This growth was primarily driven by household mortgage borrowings which expanded 8.7% in 2000, 10.6% in 2001 and 11.8% in 2002.

    I began warning of the unfolding mortgage finance bubble back in 2002. It is worth noting that total mortgage debt expanded a then record $708 billion in 2001 and $901 billion in 2002, compared to average annual growth of $265 billion during the '90s. These numbers come directly from Fed data.

    Mr Greenspan's recent epiphanies notwithstanding, there was never a mystery surrounding post-tech bubble economic resilience. The Fed and GSEs combined to ensure extremely loose mortgage finance, which provided a powerful backstop for leveraged speculation. This supported total system credit growth, asset price inflation and overall spending.

    And while we're on the subject, the Fed's opening of the liquidity spigot after the '87 crash ensured a continuation of booming late-'80s ("decade of greed") credit growth and asset inflation.

  5. Gangster's Paradise

    Now do you understand why an outfit like JPM can seemingly do what they do and only wind up paying fines?

    Please note that there is a very good reason for all of the above: This is precisely how central planners assert and maintain control over a large and complex economy while maintaining the public fiction that the system is still a “free market”. If you get all the major players engaged in lucrative but illegal behavior, and if the Fed and their minions are the ultimate arbiters of who goes to jail and who get a pass, you then have the power to control everything those entities do. You can have those firms buy or sell to lower interest rates, prop-up stocks on command, control inflation in commodities, and pretty much anything and everything you want them to do. In short, this is how you impose a regime of central planning under the guise of a system that is supposed to be a free market economy.

    Welcome to Wall Street, Comrade.

    That this is the case- that we now live and work in an economy where the actions of the dominant companies are just as centrally controlled by the government as Mussolini’s Italia ca. 1938- was proven once and for all by one Mr. Timothy Geithner. In 2009, the Fed and Treasury were bailing out Wall Street firms left and right, and he made it crystal clear how the rights of ownership and control would work henceforth. Geithner stated publicly that he was prepared to oust any CEO who did not run his bank in accordance to the wishes of the Fed and Treasury, implying the right of the government to dictate policy, investments, and anything else they wished, regardless of the desires of the shareholders, board members, or the duly elected CEOs (Link). Think about the implications of this: If you do not do exactly as we say, we will replace you with someone who will.

    What are the Banksters going to do, suddenly complain that the Government has no right to control their businesses? Are these crony capitalists suddenly going to go misty-eyed and complain to the press about the destruction of the free market? Why would they, when they are otherwise given such exceptional opportunities for graft and profit as insiders and a marker-makers? The formula is simple: do what Central Command dictates, and the law doesn’t apply to you. A Gangster’s Paradise indeed.

  6. Alan Greenspan, Lincoln Savings, Control Fraud, and “Screwiness”