In the following video, economic trends forecaster Gerald Celente does what so few in the media are willing to do these days, which is to cut through the layers of garbage being reported by special interest propagandists masquerading as “news” outlets to those who don’t know better. After a brief introduction of what is currently going on in the precious metals, oil, and equity markets, Celente wastes no time going berserk on how absurdly tainted our media’s reporting has become.
If you follow Gerald Celente regularly, a concept you’ll hear an awful lot about these days is how our society is transitioning into being a society governed by “NeoFeudalists.” Neo-feudalism can best be described as a rebirth of policies of governance, economy, and public life reminiscent of those present in many feudal societies, such as unequal rights and legal protections for common people and for nobility. Sound familiar?
During the video, Celente spends a fair amount of time talking about a recent article that appeared in the Wall Street Journal and on NASDAQ’s website: Credit Markets: Stimulus Efforts Get Weirder.“Weirder?” Weirder? Has “weirder” recently become a new synonym for “criminal.” Quoting the article in the middle of a wild rant, Celente reads:
“In two instances, the ECB has bought bonds directly from European companies through so-called private placements, in which debt is sold to a tight circle of buyers without the formality of a wider auction. It is a startling example of how banks and companies are quickly adapting to the extremes of monetary policy in what is an already unconventional age.”
Continuing his rant where he left off, Celente mocks his critics for saying he’s been preaching the same thing for years. “Unconventional Age?” Have the words “private placement” to wealthy political elites suddenly become synonymous with the words INSIDER TRADING too? Where does it end?
Every day capitalism is dying a little more, and the whole system we live in is becoming a little more “rigged” by the political class. Celente lashes out saying that it’s time for Americans to stop referring to themselves as Democrats or Republicans, and to start referring to themselves as GROWN UPS! In order to do that, they need to wake up, and stop believing the CRAP being spouted by the same crooked politicians that are robbing the people blind. It’s time Americans realize that voters are nothing more than serfs to the political establishment, serfs that exist to be used to make themselves seem legitimate.
Celeste’s tirade really begins to pick up steam as it progresses, and toward the end of the video, he shreds the media for their distorted reporting on stories like, Paralyzed Afghan, His Family Ripped Apart, Bears Pain of Perpetual War, and How Omran Daqneesh, 5, Became a Symbol of Aleppo’s Suffering. To anyone regarding what is in either of those stories as “news” is where many of this country’s problems stem from. Americans read those stories or others like them, and they assume that the “news outlet” reporting them is operating with at least the slightest amount of journalistic integrity, and nothing could be further from the truth. Therein lies the problem! After the video is the article from Wall Street Journal he refers to…
The European Central Bank’s corporate-bond-buying program has stirred so much action in credit markets that some investment banks and companies are creating new debt especially for the central bank to buy.
In two instances, the ECB has bought bonds directly from European companies through so-called private placements, in which debt is sold to a tight circle of buyers without the formality of a wider auction.
It is a startling example of how banks and companies are quickly adapting to the extremes of monetary policy in what is an already unconventional age. In the past decade, wide-scale purchases of government bonds—a bid to lower the cost of borrowing in the economy and persuade investors to take more risk—have become commonplace. Central banks more recently have moved to negative interest rates, flipping on their head the ancient customs of money lending. Now, they are all but inviting private actors to concoct specific things for them to buy so they can continue pumping money into the financial system.
The ECB doesn’t directly instruct companies to create specific bonds. But it makes plain that it is an eager purchaser, and it lays out the specifics of its wish list. And the ECB isn’t alone: The Bank of Japan said late last year it would buy exchange-traded funds comprising shares of companies that spend a growing amount on “physical and human capital,” essentially steering fund managers to make such ETFs available to buy.
The furious central-bank buying has been a relief to companies and governments that can now borrow at rock-bottom interest rates. But it has also spurred criticism that the extreme policies are killing the returns available to other investors, such as pension funds, and loading up the economy and financial system with potentially overpriced debt.
The ECB was late to the central-bank party—it began quantitative easing only in 2015, years after the U.S., the U.K. and Japan—but it has embraced bond-buying with fervor. In March, it boosted its purchases to €80 billion ($90.6 billion) a month from €60 billion and surprised investors by saying it would soon add corporate bonds to its shopping list.
It had already bought so many government bonds that it was running out of things to purchase.
The ECB had bought more than €16 billion of corporate bonds as of Aug. 12, according to the latest available data from the central bank, after starting purchases in early June. The lion’s share has been already-issued bonds trading in secondary markets, but some has come in new debt sales, according to the ECB.
And Morgan Stanley has arranged two private placements that have been bought by the ECB, according to a Wall Street Journal analysis of data from Dealogic and national central banks.
The ECB cited its website when asked to comment on the corporate-bond-buying program. On Thursday, it updated information on the site to clarify that the bank can participate in private placements. The ECB isn’t involved in defining the characteristics of the bonds in these sales, a spokeswoman for the central bank said.
Private placements are private debt sales not open to the broader market, typically relying on a handful of investors that want to buy a company’s bonds.
For the company, such a sale allows it to raise cash quickly without having to draft a bond prospectus. Investors, for their part, are guaranteed to get a sizable chunk of the bonds they want to buy without having to compete with the wider investment community.
Article posted with permission from The Last Great Stand
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