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Nomi Prins: “The Fed Is Scared To Death Of Crashing The Global Financial System”

Via Greg Hunter’s USA Watchdog blog,

Two time, best-selling author Nomi Prins says central bankers have no idea how to stop the easy money policies that they started after the financial meltdown of 2008.

Prins explains, “So, when the Fed says they are going to remove assets from their $4.5 trillion book by not reinvesting the interest payment…the reality is they haven’t really done that.  They have reduced their book by about $10 billion off of $4.5 trillion since they mentioned they were going to start ‘tapering.”

The media discusses this as a major tightening move.  Somehow all of our economies have finally worked because of central bank activity.  Growth is real.  It’s all positive.  The markets are evidence of that because of the levels they are at; and, therefore, these central banks, starting with the Fed, are going to reverse course of these last 10 years. 

“The reality is if you look at the actual activity of the central banks, beyond the Fed raising rates by a little bit, there hasn’t been and there isn’t being a reversal of course because they are scared to death that too much of a reversal is going to cause a major crash throughout the financial system.

Everything is connected.  All the banks are connected.  Money flows around the world in less than nanoseconds, and all of it has the propensity to collapse if that carpet the central banks have created is dragged from beneath the floor of all this activity.

Prins, who just finished traveling the globe to research her upcoming book, thinks there is one big thing that can take the entire system down. Prins, a former top Wall Street banker, contends:

There hasn’t been any real growth in the real economy.  That is an indication of the misfire of this entire plan.  There has been tremendous growth in stock markets and bond markets. 

If you look at localities or states or governments whose debt to GDP levels are well over 100%, in Japan it’s over 200%, in the United States it over 100%, and this is the same throughout the world.  These are levels that they have never been, and they are all at their historic highs. 

That’s why debt will ultimately be the destructor of the system.  In order for that to happen, the cheapness of money that allow states, municipalities and corporations to continue to borrow at these cheap levels has to go away…

At some point, there will be a mistake.  There might be a tiny smidge of an interest rate hike at some central bank, probably the Fed, which ripples throughout the system as a mistake, not because real growth has happened, and that’s why interest rates have been raised.  That will incur defaults throughout the system.  People will incur personal defaults, and that will cause problems in the mortgage market… then it becomes a knock-on credit crisis, and then banks start not to lend… Then we have the makings of a broad crisis.”

Prins doesn’t think we get a crash in 2018, but warns when the markets crash, “they will come down fast.”

So, how is Prins protecting herself?

Prins says,

I’m buying gold… I would also be a buyer of silver because silver is a used hard asset, and it’s at really cheap levels right now.  I would be a buyer as a percentage of my portfolio.  I have done exactly what I am telling you is a good idea to do, which is to take money from the stock market and put it into hard assets.

Join Greg Hunter as he goes One-on-One with Nomi Prins, author of the upcoming book titled “Collusion: How Central Bankers Rigged the World.”

*  *  *

After the Interview:

You can find free information and analysis from Nomi Prins at Prins is giving viewers a special link to buy her new book at a hefty discount. 

Prins says this pre-order link will give buyers of “Collusion: How Central Bankers Rigged the World” a 40% discount up until it officially releases on May 1, 2018.

No Deal: Government Shutdown To Continue For 3rd Day As Senate Sets Monday Noon Vote

Any hope that the 2-day government shutdown could be suddenly resolved with an early morning vote on Monday morning died moments ago when Chuck Schumer said “there is no deal” while Senate Majority Leader Mitch McConnell said he is canceling the previously scheduled 1am procedural vote and instead the Senate will vote on the stopgap spending bill at noon Eastern on Monday, with the government set to remain closed at least until the vote.

McConnell also said that his intention is to resolve several issues including immigration as quickly as possible, and to move to DACA on Feb. 8 if no deal has been done by then and govt stays open.

Meanwhile, the Senate Democratic Leader Chuck Schumer, objecting to earlier vote timing, said “we have yet to reach an agreement on path forward.”

As discussed earlier, a flurry of activity on Capitol Hill had stoked hopes that a deal to end the shutdown might be reached before furloughs for hundreds of thousands of government workers kick in on Monday. Instead, the Senate is now set to vote at noon on Monday to end debate on a measure that would fund the government through Feb. 8.

Furthermore, by the looks of things…

… this shutdown may indeed continue “for weeks” as Goldman predicted on Friday. And while the market may not care for now, should the funding gap extend into late February and early March, just days ahead of the debt ceiling X-Date, the S&P will – sooner or later – be reacquainted with gravity.

Even on Monday, it remains unclear if there will be 60 votes to end debate, given opposition from Senate Democrats to the measure. And, as explained yesterday, without a drop in the stock market to “mediate” and force politicians to negotiate, the question now is how deeply the two sides will dig in further as the work week begins.

Finally, for those wondering if there was any reaction in the market to the ongoing shutdown news, the answer: of course not.



15 Year Old Hacker Impersonated CIA Director And Other High Ranking Officials In Massive Data Breach

A 15-year-old “hacktivist” who tricked AOL and Verizon customer support operators into believing he was then-CIA Director John Brennan, was able to crack into Brennan’s accounts and access highly sensitive documents concerning US military and intelligence operations in Afghanistan and Iran, a UK court has heard. 

Kane Gamble AKA “Cracka”

Kane Gamble, now 18, was able to access Brennan’s emails, contacts, and his iCloud storage account after several successful attempts to manipulate information out of the call center employees. Brennan’s emails were sent to WikiLeaks and published on October 26, 2015.

Gamble used similar “social engineering” techniques to gain accdess to former Secretary of Homeland Security Jeh Johnson, former Director of National Intelligence James Clapper, tricked the FBI helpdesk into believing he was then-Deputy Director Mark Giuliano.

It was a common misconception that the group were hackers when in fact they used “social engineering” to gain access to emails, phones, computers and law enforcement portals.

It involves manipulating people, invariably call centre or help desk staff, into permitting acts or divulging confidential information,” the prosecutor said. –Telegraph

Gamble founded the five-man hacktivist group “Crackas With Attitude” (CWA) – telling a Journalist “It all started by me getting more and more annoyed about how corrupt and cold blooded the US Government are so I decided to do something about it.” The 15-year old then proceeded to unleash mayhem on his victims to “fuck the gov” according to court records, by taunting them online, downloading pornography onto their computers, and even taking control of their iPads and TV screens. 

Gamble used similar techniques to hack the home broadband of Jeh Johnson, the Secretary of Homeland Security, and was able listened to [sic] his voicemails and send texts from his phone.

He bombarded Mr Johnson and his wife with calls, asking her: “Am I scaring you?” and left messages threatening to “bang his daughter”, the court heard.

Sometime in October, 2015, the 16-year-old Gamble convinced the FBI’s help desk that the was Deputy Director Mark Giuliano – pretending to be the former FBI boss while using information he had obtained after accessing the FBI’s Law Enforcement Enterprise Portal (Leap). From this access, Gamble gained intelligence and details of government employees and police officers. Gamble then bombarded Giuliano’s family and associates with calls, forcing them to post an armed guard at their home. 

“This has to be the biggest hack, I have access to all the details the Feds use for background checks.” –Kane Gamble

Gamble pleaded guilty to ten violations of the UK’s computer misuse act in October, 2017. Two Americans charged with participating in Crackas With Attitude -computer science student Justin Liverman and Andrew Boggs, both of North Carolina – were arrested in 2016 and sentenced to five and two years in prison respectively after pleading guilty to criminal hacking conspiracy. 

Court documents filed in the cases against Boggs and Liverman allege they conspired with “Cracka” to infiltrate the internet accounts of several senior U.S. officials and their families, causing more than $1.5 million in losses.

Gamble admitted to setting his sights on other U.S. government targets including former President Barack Obama’s deputy national security adviser, Avril Haines, and his senior science and technology adviser, John Holdren, local media reported.-Washington Times

At one point, the FBI realized that their system had been breached and the password was changed, but Gamble was able to regain access by calling the FBI helpdesk as Mr. Giuliano. The young hactivist also used his access to sensitive information to post the personal details of officer Darren Wilson, who shot and killed black teenager Michael Brown in Ferguson Missouri. 

Gamble’s eight month cracking spree came to and end in February, 2016 after he accessed the details of 20,000 FBI employees from the DOJ’s network, as well as files on the Deepwater Horizon oil spill. The FBI and US Secret Service immediately called police in the UK and Gamble was arrested at his Leicestershire home he shared with his mother. 

Gamble awaits sentencing at yet to be determined date. 

Why Don’t Free Markets Always Work?

Capital controls have helped several state-run Asian economies such as in China to grow successfully for the past few decades. But as China integrates itself into the global financial system, it will have to liberalize its markets! Will liberalization help China the same as it did to Southeast Asia?