WHAT MY ELITE FRIEND TOLD ME…
…WHAT TO EXPECT BETWEEN NOW AND JANUARY 1, 2017!
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- What will take place after October 1, 2016?
- Will Donald Trump be the next president?
- If he wins, will Trump be allowed to take office?
- Elite Divine Encounter.
- Two currencies – One devalued?
- Big trouble among the Elite.
- The date of the CRASH!
- The most encouraging DVD From Pastor Williams to date.
- Hear congressmen Ron Paul and David Stockman.
Pastor Lindsey Williams
Author of The Energy Non-Crisis
WHAT MY ELITE FRIEND TOLD ME…
…WHAT TO EXPECT BETWEEN NOW AND JANUARY 1, 2017!
The New DVD From
Pastor Lindsey Williams
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This is an invitation by Pastor Lindsey Williams taken from the DVD ‘Elite Plans For 2016‘. Lindsey Williams, an ordained Baptist minister went to Alaska in 1970 as a missionary. For three years Pastor Lindsey Williams had the opportunity to sit, live and rub shoulders with the most powerful, controlling and manipulative men on the face of this planet.
PLEASE SHARE PASTOR WILLIAMS MESSAGE TO EVERYONE YOU KNOW!
ELITE PLANS FOR 2016
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- Who will be the next president of the U.S.?
Why no financial collapse in 2015?
Hear from someone in contact with the Elite.
Five firearms every American should own.
Is war inevitable?
Pastor Lindsey Williams
Author of The Energy Non-Crisis
ELITE PLANS FOR 2016
TAKE IMMEDIATE ACTION!
The New DVD From
Pastor Lindsey Williams
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This is your best DVD Ever! Extremely informative & I appreciate you answering many of our questions in the DVD, for those who have followed you over the years. Your son did a great job in his presentation on firearms.
I have followed you for years & have continued to purchase your DVD’s through Prophecy Club… My wife & I are very grateful to you, for information you have shared with the world.
We have done all the things you have suggested & we are at peace. We are both followers of Jesus Christ, our LORD and Savior!
God Bless You & Your Family,
Michael & DeAnna
I just received LW’s latest DVD on 2016, and it is riveting. As a born again Christian believer, who also believes in the pre-Tribulation rapture, it is very heartening to hear any preacher these days present a good old-fashioned Gospel message and belief in the rapture. I really felt this DVD was more like a “left behind” DVD, as none of us (nor God Himself) can force people to believe; one must accept the Truth by free will.
Thank you for considering,
ELITE PLANS FOR 2016
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Pastor Lindsey Williams
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Over 20+ Presentations Detailing 40 Years
Exposing The Elites Plan for Humanity and this Planet!
Available Online For The First Time!
Over 46 Hours of Content Now Available to Watch & Listen To Instantly On Your Computer, Laptop, Tablet or Mobile Phone.
Every DVD and Presentation Produced by Pastor Lindsey Williams until the end of 2014 now available to view online, including: Exclusive content only available online at LindseyWilliamsOnline.com, content available without advertisements in Digital Streaming format and content Digitally Remastered from Original Recordings!
Including 3 Presentations Never Before Available Online!
All the DVDs, Videos & Presentations included in this Special Package… Available for Instant Streaming on your PC, Laptop, Tablet or Smart Phone…
Special Events Scheduled for 2015, 2015 – Elite Agenda, Global Currency Reset, Elite Emergency Data, Healing the Elite Way, New Signs of the Elite, The Next 4 Years & How to Survive the Next Four Years, Secrets of the Elite, 2012 The Beginning of the End, Middle East: The Rest of the Story, The Elite Speak, Tragedy/Hope/Reality, Confessions of an Elitist, Jonathan May Economic Hitman, Torn from the Land, Are They Worth the Risk Immunizations/Vaccinations, Deadly Diseases and Microbial Mutations, 3 Different Versions of The Energy Non-Crisis Presentation. All Included!
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GLOBAL CURRENCY RESET
New DVD From Lindsey Williams
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The greatest event in the financial world in the past 1,000 years is about to take place. Two hundred and four nations have agreed with the IMF (International Monetary Fund) to reset their currency. Christine Lagarde is the new financial head of the IMF. If she and the Elite have their way, this event will take place within the next ninety days (three months).
The Elite have prepared you for this event with an Electric Smart Meter which has been installed on almost every house in America. Only from my Elite friend will you ever know what has been done to you. Only in my new DVD will you learn these details. No one else will dare to tell you this.
Time is no longer on your side. Its time to take action and protect yourself today. You can order “Global Currency Reset” from Prophecy Club.
Pastor Lindsey Williams
Author of The Energy Non-Crisis
You must know what a
GLOBAL CURRENCY RESET
is and take immediate precautions
Two hours of explanation
GLOBAL CURRENCY RESET
New DVD From Lindsey Williams
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Pastor Lindsey Williams has confirmed that there will be be a worldwide economic and financial crash slated for 2015 after the Patient Protection and Affordable Care Act (HR 3590) is fully enacted. The act is not a healthcare bill but works hand in glove with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (HR 3162) for total control of the USA and ultimately the world in one swift move. The word is control and their ultimate goal is to enslave the entire population of the planet. The plan is so ingenious and simple it’s incredible. This is not a theory, this is the truth and verified by the very highest echelons of the elite. The crash must happen, the economies of the world are already on a knife-edge one piece of bad news and it will come crashing down taking all the banks, investment banks and pension funds with it. Chaos will reign and out of the chaos order will come. It is taking place so the elite can come to the rescue and that will see the initiation of the new world government and the debasement of the US Dollar. The crash that is coming will make 2008 look like a minor financial correction. Imagine all companies, all businesses, all mortgages all owned by the elite. Its a very real threat and you only have a short window in order to protect yourself from it. This is why I have taken Pastor Lindsey Williams steps to avoid the crash as he shared in his new DVD “Elite Emergency Data” and expanded them into an extensive article to hopefully explain what is happening, why and how you can protect your family from it, even prosper from it…
I have outlined the 10 Steps To Avoid The Crash in several sections to make it easier to digest, please read it all and follow the steps as best you can:
- INTRODUCTION: 10 steps to avoid the crash.
- PART 1: Buy every piece of gold you can lay your hands on.
- PART 2: You have to get out of debt.
- PART 3: Get out of paper.
- PART 4: Pay off your house mortgage.
- PART 5: Store food, water and firearms.
- PART 6: Get ready for the biggest buying opportunity of your lifetime.
- PART 7: Get out of the city.
- PART 8: Purchase everything you need.
- PART 9: Sort out your medicine cabinet.
- PART 10: Get your spiritual house in order.
- CONCLUSION: 10 steps to avoid the crash – conclusion.
Once you have carried out these 10 steps you will be better able to survive, even thrive through the coming collapse. Of course a lot of people’s situations do not permit them to carry out all the steps, just do as much as you can. Being prepared for the worst is the best protection. Please share the articles with as many people as you can, because everyone needs to know what has been planned for them by the elite.
Please do not take the article lightly and do not take it at face value. Please do your own research and if you have a differing opinion, please share it.
I have also created the entire 10 Steps To Avoid The Crash article into a 100 page illustrated PDF E-Book. Please download and share it freely. Download the e-book here.
ELITE EMERGENCY DATA
New DVD From Lindsey Williams
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I promised you, that when my elite friend told me the time for the crash to take place, that I would tell you!
My Elite friend has told me when the collapse of the banks and the crash of the dollar will take place.
There are TWO other collapse which you must know about that will affect you and your family more than the collapse of the dollar.
A few weeks from now I may or I may not appear on radio shows with this information.
It is imperative for you to get this information now before its too late. You can order “Elite Emergency Data” from Prophecy Club.
Pastor Lindsey Williams
Author of The Energy Non-Crisis
ELITE EMERGENCY DATA
New DVD From Lindsey Williams
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AFTER you have viewed the new DVD “Elite Emergency Data” Please read the report by Attorney Connelly and you will understand why the Health Care Bill is related to the Total Financial Collapse – Chaplain Lindsey Williams
The Truth About the Health Care Bills – Michael Connelly, Ret. Constitutional Attorney
To begin with, much of what has been said about the law and its implications is in fact true, despite what the Democrats and the media are saying. The law does provide for rationing of health care, particularly where senior citizens and other classes of citizens are involved, free health care for illegal immigrants, free abortion services, and probably forced participation in abortions by members of the medical profession.
The Bill will also eventually force private insurance companies out of business, and put everyone into a government run system. All decisions about personal health care will ultimately be made by federal bureaucrats, and most of them will not be health care professionals. Hospital admissions, payments to physicians, and allocations of necessary medical devices will be strictly controlled by the government.
However, as scary as all of that is, it just scratches the surface. In fact, I have concluded that this legislation really has no intention of providing affordable health care choices. Instead it is a convenient cover for the most massive transfer of power to the Executive Branch of government that has ever occurred, or even been contemplated. If this law or a similar one is adopted, major portions of the Constitution of the United States will effectively have been destroyed.
The first thing to go will be the masterfully crafted balance of power between the Executive, Legislative, and Judicial branches of the U.S. Government. The Congress will be transferring to the Obama Administration authority in a number of different areas over the lives of the American people, and the businesses they own.
The irony is that the Congress doesn’t have any authority to legislate in most of those areas to begin with! I defy anyone to read the text of the U.S. Constitution and find any authority granted to the members of Congress to regulate health care.
This legislation also provides for access, by the appointees of the Obama administration, in direct violation of the specific provisions of the 4th Amendment to the Constitution, of all of your personal healthcare information, your personal financial information, and the information of your employer, physician, and hospital. All of this is a protecting against unreasonable searches and seizures. You can also forget about the right to privacy. That will have been legislated into oblivion regardless of what the 3rd and 4th Amendments may provide.
If you decide not to have healthcare insurance, or if you have private insurance that is not deemed acceptable to the Health Choices Administrator appointed by Obama, there will be a tax imposed on you. It is called a tax instead of a fine because of the intent to avoid application of the due process clause of the 5th Amendment. However , that doesn’t work because since there is nothing in the law that allows you to contest or appeal the imposition of the tax, it is definitely depriving someone of property without the due process of law.
So, there are three of those pesky amendments that the far left hate so much, out the original ten in the Bill of Rights, that are effectively nullified by this law. It doesn’t stop there though.
The 9th Amendment that provides: The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people;
The 10th Amendment states: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are preserved to the States respectively, or to the people. Under the provisions of this piece of Congressional handiwork neither the people nor the states are going to have any rights or powers at all in many areas that once were theirs to control.
I could write many more pages about this legislation, but I think you get the idea.
This is not about health care; it is about seizing power and limiting rights. Article 6 of the Constitution requires the members of both houses of Congress to “be bound by oath or affirmation to support the Constitution.” If I was a member of Congress I would not be able to vote for this legislation or anything like it, without feeling I was violating that sacred oath or affirmation. If I voted for it anyway, I would hope the American people would hold me accountable.
For those who might doubt the nature of this threat, I suggest they consult the source, the US Constitution, and Bill of Rights. There you can see exactly what we are about to have taken from us.
Michael Connelly (First published in June 2012)
Constitutional Law Instructor
AFTER HAVING READ THIS, PLEASE SHARE…
WE MUST HOLD CONGRESS ACCOUNTABLE BEFORE IT IS TOO LATE!
If you have not yet obtained a copy of Pastor Lindsey Williams’ new DVD “Elite Emergency Data” you can obtain one from Prophecy Club.
HEALING THE ELITE WAY
New DVD From Lindsey Williams
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“The Most Important DVD I Have Ever Made!
It Saved My Life!
This DVD May Save Your Life!”
Pastor Lindsey Williams
Think About It –
No President of the United States has ever died from Cancer.
– Why? What do they know that you don’t know?
President Ronald Reagan was diagnosed with Colon Cancer while he was President. He imported a substance that was illegal to be used in the United States at that time. He never had a reoccurrence.
There is no reason to suffer from –
- Heart Disease
- Chronic Fatigue Syndrome
- Multiple Sclerosis
- Hepatitis C
- Hormonal Imbalance
- Vascular Disease
- Immunological Imbalance
“The Elite know how to be healed – I have been told some of their secrets. Thus, this DVD, Healing the Elite Way.” – Lindsey Williams
Author of The Energy Non-Crisis
HEALING THE ELITE WAY
New DVD From Lindsey Williams
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Lindsey Williams, an ordained Baptist minister went to Alaska in 1970 as a missionary. While in Alaska, Pastor Williams found out about the Trans-Alaska oil pipeline, which began construction on 29th April 1974. Because of Pastor Williams’ love for the USA and concern for the spiritual welfare of the over 25,000 workers on the pipeline, he volunteered to serve as Chaplain on the pipeline, with the full support of the Alyeska Pipeline Company.
Pastor Williams was given the northern 7 out of the 28 construction camps including the oil field at Prudhoe Bay to hold worship services at the 7 camps once a day. After six months a PR employee at Alyeska Pipeline Company told Pastor Lindsey Williams that he was an invaluable asset to the company. He said that Lindsey was saving the oil pipeline company thousands of dollars of counselling fees and had voted successfully to give Pastor Williams executive status if he wished to accept it. Executive status meant that Lindsey Williams could go anywhere he liked and see anything he wanted regarding the pipeline operation. They gave him a vehicle and an executive pass and he was also invited to sit in on board meetings in an advisory capacity in order to help the relationship between management and labour.
For three years Pastor Lindsey Williams had the opportunity to sit, live and rub shoulders with the most powerful, controlling and manipulative men on the face of this planet.
The site I have created will document what happened to Pastor Lindsey Williams during his time as chaplain to the Alyeska Pipeline Company and what has happened subsequently regarding the elite’s plan for control of the world and its resources.
Lindsey Williams gives the most important message you will ever hear…
The Bible says there is only one way to Heaven:
Jesus said: “I am the way, the truth, and the life: no man cometh unto the Father but by me.” (John 14:6)
Good works cannot save you.
“For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: Not of works, lest any man should boast.” (Ephesians 2:8-9)
Trust Jesus Christ today! Here’s what you must do:
Admit you are a sinner.
“For all have sinned, and come short of the glory of God;” (Romans 3:23)
“Wherefore, as by one man sin entered into the world, and death by sin; and so death passed upon all men, for that all have sinned:” (Romans 5:12)
“If we say that we have not sinned, we make him a liar, and his word is not in us.” (1 John 1:10)
Be willing to turn from sin (repent).
Jesus said: “I tell you, Nay: but, except ye repent, ye shall all likewise perish.” (Luke 13:5)
Believe that Jesus Christ died for you, was buried, and rose from the dead.
“For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” (John 3:16)
“But God commendeth his love toward us, in that, while we were yet sinners. Christ died for us.” (Romans 5:8)
“That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved.” (Romans 10:9)
Through prayer, invite Jesus into your life to become your personal Saviour.
“For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.” (Romans 10:10)
“For whosoever shall call upon the name of the Lord shall be saved.” (Romans 10:13)
What to pray:
Dear God, I am a sinner and need forgiveness. I believe that Jesus Christ shed His precious blood and died for my sin. I am willing to turn from sin. I now invite Christ to come into my heart and life as my personal Saviour.
Pastor Lindsey Williams will be at the IBC Hospital & Health Center in Tijuana, Mexico under the care of Rodrigo Rodriguez MD, Medical Director as a part of his “Tune Up” from 3rd March 2013.
From March 11, 2013 through March 15, 2013 Pastor Williams will be holding a number of radio shows with Dr. Rodriguez to discuss that doctors all over America are closing their offices and leaving the medical profession because of the new healthcare system beginning January 1, 2013. Pastor Williams and Dr. Rodriguez will be discussing this and more information relating to the elite and their plan for humanity and this planet including where the elite go for their healthcare needs including treatments available at International Bio Care Hospital & Medical Center in Tijuana, Mexico.
For further information relating to IBC Hospital & Health Center please call: 1-800-701-7345
From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. Please LIKE the Lindsey Williams Online Facebook Page to see stories posted daily regarding the current state of the economy around the world.
Latest News From July 15, 2016 to July 21, 2016:
- David Stockman On The Coming Global Collapse As One Short Seller Warns “I Have No Idea How Long They Can Keep Pretending”
With continued uncertainty in global markets, David Stockman weighed in on the coming global collapse and one short seller warned, “I have no idea how long they can keep pretending.” – Overnight equity markets were slightly lower, with bonds markets slightly higher in uneventful trading. As for our equity market, Netflix provided some fireworks, as it lost badly at the game of beat-the-number and the stock price was hammered for 14%. IBM, however, managed to win at Wall Street’s favorite game by making enough acquisitions to make the estimates. For those keeping score at home, revenues were down about 3%, making this the seventeenth quarter in a row for that feat. Debt now stands at $42 billion and book value is minus $27…
- Governments To Christians: Don’t You Dare Speak Out Against The Sexual Sin In Society
In our upside down world, evil has become good and good has become evil. Once upon a time, everyone in society generally knew what was “right” and what was “wrong” even if they didn’t always abide by the rules. But now the rules have been totally flipped on their head. If you choose to live a lifestyle that is morally wrong, you are celebrated by society, and if you choose to speak out against the sexual sin that is exploding everywhere around us then you are considered to be a “hater” and a “bigot”. In fact, governments all over the world are now passing “hate speech” laws that are making it a crime to speak out against sexual sin. With each passing year it gets even worse, and those pushing this agenda forward are never going to be satisfied until those standing up for Biblical truth are locked away in prison.
- Jim Rickards: Dynamics in Place for $10,000 Gold
Jim Rickards has been predicting $10,000 gold. Recently, he appeared on CNBC’s Squawk Box and stuck to that prediction, saying the dynamics are in place for gold to reach that $10,000 mark. Rickards said he thinks we are at the beginning of an extended gold bull market, possibly similar to the late 1990s when the price of the yellow metal went up 615% over a 12-year period. He conceded gold can be volatile, so he doesn’t pay as much attention to short-term fluctuations in price. But he did note an interesting fact in the wake of the recent price jumps after some major world events.
- To The Mattress: Fund Manager Cash Levels Highest In 15 Years
Despite the post-Brexit market rally, fund managers have gotten even more wary of taking risks. The S&P 500 has jumped about 8.5 percent since the lows hit in the days after Britain’s move to leave the European Union, but that hasn’t assuaged professional investors. Cash levels are now at 5.8 percent of portfolios, up a notch from June and at the highest levels since November 2001, according to the latest Bank of America Merrill Lynch Fund Manager Survey. In addition to putting money under the mattress, investors also are looking for protection, with equity hedging at its highest level in the survey’s history.
- The financial system is breaking down at an unimaginable pace
Now it’s $13 trillion. That’s the total amount of government bonds in the world that have negative yields, according to calculations published last week by Bank of America Merrill Lynch. Given that there were almost zero negative-yielding bonds just two years ago, the rise to $13 trillion is incredible. In February 2015, the total amount of negative-yielding debt in the world was ‘only’ $3.6 trillion. A year later in February 2016 it had nearly doubled to $7 trillion. Now, just five months later, it has nearly doubled again to $13 trillion, up from $11.7 trillion just over two weeks ago.
- Bubble Finance At Work——65%-70% Of Households Have Lower Real Incomes Than In 2005
A new study from McKinsey looks at the cross-generational distribution of income as a form of new ‘inequality’, in words of the authors: “an aspect of inequality that has received relatively little attention, perhaps because prior to the 2008 financial crisis less than 2 percent of households in advanced economies were worse off than similar households in previous years. That has now changed: two-thirds of households in the United States and Western Europe were in segments of the income distribution whose real market incomes in 2014 were flat or had fallen compared with 2005.”In other words, McKinsey folks are looking at the “proportion of households in advanced economies with flat or falling incomes” – the generational cohorts that are no better than their predecessors.
- Erdogan’s Staged Coup Has Resulted In A Purge Of 50,000 Teachers, Judges, Soldiers And Government Officials
Barack Obama’s “friend” in Turkey is a deeply corrupt radical Islamist dictator that has just staged a coup to consolidate his grip on power. As I have reported previously, 1,845 “journalists, writers and critics” have been arrested for “insulting” President Erdogan over just the past two years, and a couple of years ago he had a monstrous 1,100 room presidential palace built for himself that is 30 times larger than the White House. With each passing day, more evidence emerges which seems to indicate that the recent “coup” was a staged event meant to enable Erdogan and his allies to eliminate their enemies and solidify their stranglehold over the nation. At this point the number of victims of “Erdogan’s purge” has hit 50,000, but the final number will not be known for quite some time.
- The man who accurately predicted 4 market crashes told us the dates when oil prices will fall again
The man who accurately predicted four market crashes to the exact date recently told Business Insider about his calendar prediction for when oil prices would start to significantly slump again. Sandy Jadeja is a technical analyst and chief market strategist at Core Spreads. Technical analysts look at charts to pinpoint patterns in various markets and asset classes. From that they forecast which direction prices are likely to move. They can’t tell you why there will be a big market movement, only that there will be one. He says there is a specific time period to watch out for.
- Financial System Held Together with Bailing Wire & Chewing Gum-Craig Hemke
Financial and precious metals expert Craig Hemke contends profits in the stock market, in the past few years, came with extreme hidden risk. Hemke explains, “I know why I own precious metal and am continuing to buy it, and that is what I am telling people to do. I mean the price has fallen for totally uneconomic reasons, manipulation being one . . . but anyway, I have used that weakness the last three or four years to keep buying. So, now with this recovery, all of my metal on a cost basis is less than what the current price is. That’s worked out quite well. I am not going to argue with anybody that says you should have sold all your gold in 2011, with the benefit of hindsight, and you should have bought the S&P. You would have made 100%, and hey, knock yourself out. The reason I didn’t attempt to do that is knowing full well anytime between 2011 and today I could have woken up and the whole system could have blown up. That’s how fragile it is. It’s all held together with bailing wire and chewing gum.”
- The Entire Market is Being Driven by a “Once in History” Asset Bubble About to Burst
Since QE 3 ended in October 2014, stocks have traded in a large range between roughly 2,130 and 1800 on the S&P 500. During this time, whenever stocks began to breakdown in a serious way, a clear intervention was staged in which someone manipulated the markets higher. Regardless of whether you are a bull or a bear, none of those rallies felt normal or sane in any way. No one panic buys every single day at the exact same time for days on end. Which brings us to today. Stocks have broken out of the trading range to the upside hitting new all-time highs.
- We’re witnessing a complete breakdown in western values
Two months ago I was with the former President of Colombia, Alvaro Uribe, at his home outside of Medellin. He was telling me some hilarious stories about his interactions in the early 2000s with Hugo Chavez, who had recently seized power in Venezuela. Chavez was a fanatic socialist. He believed so strongly in the idea of redistributing wealth from rich to poor. Yet even when it was clear his policies weren’t working and Venezuela was rapidly sliding into economic chaos, Chavez’s only solution was to double down and redistribute even MORE wealth. It was the classic definition of insanity. Chavez failed to understand what Uribe told me so succinctly: “If there’s no wealth creation, there’s nothing left to redistribute.”
- Axe-Wielding Terrorist Attacks Train Passengers In Germany And A Police Car Is Firebombed In Florida
Crazy people committing random acts of senseless violence is rapidly becoming the “new normal” in the western world. On Monday, a police vehicle was firebombed in Daytona, Florida by someone that was enraged by the recent shooting deaths of Alton Sterling and Philando Castile. And over in Europe, an axe-wielding Islamic terrorist shouted “Allahu Akbar” as he started wildly attacking passengers on a train in southern Germany. Authorities say that the young man was originally from Afghanistan, and according to the Mirror he was shot dead before he could flee the scene of the attack…
- Baton Rouge, Nice, Dallas, Orlando – A Dark And Distressing Time Has Descended Upon The Civilized World
Does it not seem as though events are starting to accelerate significantly? Since I warned that something “had shifted” and that things had “suddenly become more serious“, we have seen the worst mass shooting in U.S. history in Orlando, we have seen the massacre of five police officers in Dallas, we have seen the horrifying terror rampage in Nice, and now we have seen the brutal murder of three police officers in Baton Rouge. On Sunday morning, the peace and quiet in Baton Rouge were shattered when “dozens of shots” erupted less than one mile from police headquarters. By the end of it, 29-year-old Gavin Eugene Long had killed three officers and seriously wounded three others. It was a crime fueled by pure hatred, and Long specifically waited for his 29th birthday to launch the attack…
- End of an Era: The Rise and Fall of the Petrodollar System
The intricate relationship between energy markets and our global financial system, can be traced back to the emergence of the petrodollar system in the 1970s, which was mainly driven by the rise of the United States as an economic and political superpower. For almost twenty years, the U.S. was the world’s only exporter of petroleum. Its relative energy independence helped support its economy and its currency. Until around 1970, the U.S. enjoyed a positive trade balance. Oil expert and author of the book “The Trace of Oil”, Bertram Brökelmann, explains a dramatic change took place in the U.S. economy, as it experienced several transitions: First, it transitioned from being an oil exporter to an oil importer, then a goods importer and finally a money importer. This disastrous downward spiral began gradually, but it ultimately affected the global economy. A petrodollar is defined as a US dollar that is received by an oil producing country in exchange for selling oil. As is shown in the chart below, the gap between US oil consumption and production began to expand in the late 1960s, making the U.S. dependent on oil imports.
- The Helicopter Has Already Been Tested – And It Failed Spectacularly
Most of what passes for modern monetary policy is nothing more than one assumption piled upon another (and then another, and so on). Taken for granted for so long, rarely are these unproven precepts ever challenged to justify themselves to the minimal standard of internal consistency, let alone prove discrete validity by parts. The latest is “helicopter money”, another sham in a long line of them proffered by at least one central bank today because it knows, as the others, nothing they have done has worked. The fact that the world is even discussing the helicopter option should instill great skepticism as a first impulse, not more rabid faith. The way this latest scheme is being described is exactly the same as quantitative easing was really not that long ago. Clearly the expectation for it is rising, as Bloomberg reported today that, “Nearly one-third of clients and colleagues surveyed by Citigroup Inc. think that so-called helicopter money could be on its way within a fortnight.” Forty-three percent in the same survey believed that the “market” was expecting it.
- The entire financial system is exposed to this junk bond market
Japan got there first. 15 years ago, we met a Japanese equity manager who made an astonishing prediction: “Japan was the dress rehearsal. The rest of the world will be the main event.” That seemed an extraordinary suggestion 15 years ago. Today, not so much. In the aftermath of the late 1980s real estate and stock market bubble, and its subsequent banking crisis, Japan became a giant laboratory experiment for novel insane monetary policies. In 2001 the Bank of Japan tried Quantitative Easing. It was a policy that Richard Koo of the Nomura Research Institute described as the “greatest monetary non-event”. It turned out, not for the first time, that academic economists had it all wrong.
- “The World’s Central Banks Are Making A Big Mistake”
While everyone was talking about Brexit last month, the Bank for International Settlements released its 86th annual report. Based in Basel, Switzerland, the BIS functions as a master hub for all the world’s central banks. It settles transactions among central banks and other international organizations. It doesn’t serve private individuals, businesses, or national governments. Because it is relatively free from political considerations, the BIS can speak about economic issues more directly than its member central banks can. And its candor has grown steadily in recent years. When central bankers like Janet Yellen or Mario Draghi speak, we have to discount their statements because they have policy agendas to promote. While the BIS has an agenda, too, the bank isn’t tied to any particular economy or government. Its analysts are paying attention to how the world functions in toto.
- Unexpected Gasoline Inventory Build, Production Rise Spark Crude Chaos
Following last week’s surprise Distillates build (and bounce in production) and API’s overnight surprise Gasoline build, DOE data this morning was mixed confirming the 2.3mm draw in overall crude inventories (9th weekin a row) but surpringly large builds in both Cushing and Gasoline inventories (expectations were for draws). Oil prices were chaotic – running stops high and low – as algos noted crude production also rose (for the 2nd week in a row).
- Another Bad Month For Truck Shipping
Truck shipments were up in June from May. So were expenditures. That sounds pretty good, but it really isn’t. Shipments are normally up in June and the Cass Freight Index report from which I get numbers is not seasonally adjusted. The best way to compare June is to prior years, and that picture isn’t pretty.
- Brexit: UK economy yet to suffer slowdown following EU vote, says Bank of England
The Bank of England is yet to see any clear evidence of an economic downturn due to Britain’s decision to vote in favour of leaving the European Union, although hiring and investments were being put on hold. Business uncertainty has “risen markedly” in the four weeks following the EU referendum, but there was no evidence that consumers had reined in their spending, the BoE’s regional agents said on Wednesday (20 July). “A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff-hiring plans,” Britain’s central bank said in a statement.
- Why Growing Food is The Single Most Impactful Thing You Can Do in a Rigged Political System
The most effective change-makers in our society aren’t waiting around for a new president to make their lives better, they’re planting seeds, quite literally, and through the revolutionary act of gardening, they’re rebuilding their communities while growing their own independence. Every four years when the big election comes around, millions of people put their passion for creating a better world into an increasingly corrupt and absurd political contest. What if that energy was instead invested in something worthwhile, something that directly and immediately improved life, community, and the world at large? The simple act of growing our own food directly challenges the control matrix in many authentic ways, which is why some of the most forward-thinking and strongest-willed people are picking up shovels and defiantly starting gardens. It has become much more of a meaningful political statement than supporting political parties and candidates.
- Japan, Helicopter Money, Cold Fusion And The Disastrous Endgame
With continued wild trading this summer in global markets, it’s all about Japan, helicopter money, cold fusion and the disastrous endgame. Overnight markets were all higher and the world was once again a-twitter over the concept of “helicopter money.” But once again, the pundits and the press are getting the descriptions wrong. Just like they talk about minimal inflation rates as “deflation” because they are scared of a depression, which is what they think deflation means, or refer to a 20% move as a bull or bear market, they are now mindlessly labeling the next step in monetary debasement as helicopter money…
- Renewable Energy Investment Drops By Nearly A Quarter
As the cost of installing solar panels waned and China pressed pause on its spending, global investment in renewable energy sunk 23 percent in the first half of 2016. According to London-based Bloomberg New Energy Finance, solar, wind, and other clean-energy industries engrossed $116.4 billion in the first two-quarters of the year 2016. This included $61.5 in the second quarter. The research company said it also reviewed up 2015’s total by practically $20 billion to a record of $348.5 billion.
- How & by How Much Big Pharma Fools Investors
Yesterday, we were bashing big pharmaceutical companies for jacking up prices of patent-protected drugs at obscene rates. Those double-digit price increases were largely responsible for the sales increases these companies reported. Drugs have become the largest wholesale category, at $54.3 billion in May, or 12.2% of total wholesales. This boom is based on price increases at a great cost to US consumers and taxpayers. It’s cannibalizing the rest of the economy. But it’s made possible by the abuse of the patent system, the increasingly monopolistic structures in the industry after a tsunami of mergers funded by cheap credit and a soaring stock market – as planned by the Fed – along with legislators and regulators that have been compromised by the big money and the revolving door.
- Spain’s Banks are Suddenly “Too Broke To Fine”
After eight years of chronic crisis mismanagement, moral hazard and perverse incentives have infected just about every part of the financial system. Earlier this week, the U.S. Congress published the findings of a three-year investigation into why the Department of Justice chose not to punish HSBC and its executives for their violations of US anti-money laundering laws and related offenses – because doing so would have had “serious adverse consequences” for the financial system – the “Too Big To Jail” phenomenon, a perfect, all-purpose, real-world Get-Out-of-Jail-Free card. But now there’s “Too Broke to Fine.” Today over a dozen Spanish banks were given a life-line by the EU’s advocate general, Paolo Mengozzi, that could be worth billions of euros in savings for the banks. For millions of Spanish mortgage holders, it could mean billions of euros in lost compensation.
- Is Pokemon Go Evil, Dangerous Or Demonic?
One week ago, a game called Pokemon Go was launched, and over the last seven days it has become an international phenomenon. It is the first mass market video game to successfully blend the real world and the digital world together in a way that the public truly embraces, and it is making headlines all over the planet. At this point it has almost as many daily active users as Twitter does, and Nintendo’s stock price is going crazy as a result. On Monday it shot up 25 percent, and on Tuesday it surged another 13 percent. In other words, Nintendo is now worth billions of dollars more than it used to be. But is there a dark side to Pokemon Go? Is it potentially evil, dangerous or demonic?
- 2067: The end of the oil age
The fear of losing a market share makes the oil countries play the oil price wars, glut the market while the low prices reducing investments in the new oil reserves exploration for the second year. The world proved oil reserves increased by only 2.5 times up to 1.7 trillion barrels during active crude oil production for the past 35 years. It seems that the major crude oil producing countries, which are so keen on a price war, forgot that in reality the oil runs out very quickly. For better understanding: 1.7 trillion barrels of oil with a production of 90 million barrels per day are approximately as the Indian Ocean from which two Gulfs of Mexico are scooped out every year. According to the simplest calculations, it seems the current world’s oil proved reserves at a current production level will suffice for 50 years. By that time it will be possible to find industrial raw commodity to replace the oil in the cycle of production of goods, find and widely implement a cost-effective energy analogue. But in reality it is not so smooth.
- The Energy “Death List”: Who’s On It and Who’s Next?
In June, Warren Resources filed for Chapter 11 bankruptcy. The Houston-based company was just another one added to the group of 150 North American industry filings over the last year and a half since the oil decline started. Warren Resources could also be found in the 2015 publication of an “oil company death list” put out by Oxford Club investors’ network out of Baltimore. 19 companies were accused of “toxic” debt-to-equity ratios on the list. Since it was published, eight of the companies on the list have filed for protection, another was purchased at a low price, and few still are trying to keep their head above water.
- EU Looks To Break Baltic Dependence on Russian Energy
After EU-member states agreed on a Commission proposal, the EU will invest €263 million in key gas and electricity projects across the Union with primary focus on the Baltic Sea region. The European Commission announced on Friday (15 July) in a press release that the 28 member states agreed to invest €263 million in trans-European energy infrastructure projects. The biggest share of the support will be destined to the Baltic Sea region to help the expansion of the gas infrastructure, meanwhile the other part of the investment will support the electricity sector across the European Union.
- The Global Oil Glut Gets Uglier – Forget the Recovery and “Rebalancing” Hype
Deal makers in the oil patch of the US and Canada are smelling the fees, and they’re firing up the machinery. In the first half of the year, there were 52 pending and completed acquisitions of oil & gas exploration & production companies valued at $100 million or more, for a total of $30 billion, Fitch Ratings reported today: “The rise in transaction volume seems to be largely due to the improvement in hydrocarbon prices, including the tightening of bid/ask spreads, and access to capital markets.” The global oil market is “rebalancing” with production falling and demand rising, the meme goes. In anticipation, prices have bounced off the lows in February, with WTI soaring from $26.19 a barrel to $51.23 by June 8. So this would be the great oil price recovery.
- Great American Oil Bust Rages on; Defaults, Bankruptcies Soar – How much worse is 2016 than 2015?
Junk bonds, trading like stocks since February, have skyrocketed and yields have plunged. But that doesn’t mean the bloodletting is over. The trailing 12-month US high-yield bond default rate jumped to 4.9% at the end of June, the highest since May 2010 as the Financial Crisis was winding down, Fitch Ratings reported today. The first-half total of $50.2 billion of defaults already exceeds the $48.3 billion for the entire year 2015. Energy companies accounted for 56% of those defaults. The energy sector default rate shot up to 15%. Within it, the default rate of the Exploration & Production (E&P) sub-sector soared to 29%! And the default party isn’t over: “Despite the run-up in prices since the February trough, there will be additional sector defaults, with Halcon Resources expected to file imminently,” Fitch reported.
- Stocks Will Crash – and Crush (California’s) Pension Funds & Taxpayers: Report
The California Policy Center published an interesting study – “interesting” in all kinds of ways, including its outline of the doom-and-gloom future of California’s state and local pension plans if stocks turn down sharply, preceded by its prediction that stocks will turn down sharply because valuations are totally unsustainable. The huge, simultaneous, Fed-engineered rallies in stocks, bonds, and real estate – typically the three biggest holdings of state and local pension funds in the US – have inflated the balance sheets of these funds, thus elegantly, if only partially, papering over their fundamental problems. Most of these funds have a similar doom-and-gloom future when the asset bubbles get pulled out from under them. Plenty of pension funds don’t even need a market correction: they’re already in serious trouble despite the asset bubbles.
- China Is About To Shock The World And The Global Financial System
On the heels of the Dow hitting new all-time highs and the U.S. dollar surging, China is about to shock the world and the global financial system. Stephen Leeb: “Global turmoil keeps ratcheting up. Just when you think it couldn’t get any worse, it does. The attempted military coup in Turkey is the latest eruption, following on the heels of yet another massacre in France. Syria remains an ongoing nightmare while terrorist bombings in Iraq are so commonplace they barely register…
- End Time Persecution Is Here: Russia Just Banned Evangelism And China Has Torn Down 1000s Of Crosses
We always knew that this was coming. For years, the horrifying persecution of Christians in the Middle East has made headlines all over the globe, but now we are seeing very disturbing examples of government-sanctioned persecution literally all over the planet. As you will read about below, Russia just banned virtually all types of evangelism outside of a church or religious site. And China has been tearing down thousands of crosses and has been demolishing dozens of churches in a renewed crackdown on the growth of Christianity in that nation. Overall, there are 53 countries that now have laws that restrict the Christian faith according to one recent report. When are we going to wake up and realize what is happening?
- America Wastes About HALF The Food That It Produces While Hunger Runs Rampant Around The Globe
Is the United States the most wasteful nation on the entire planet? We are all certainly guilty of wasting food. Whether it is that little bit that you don’t want to eat at the end of a meal, or that produce that you forgot about in the back of the refrigerator that went moldy, the truth is that we could all do better at making sure that good food does not get wasted. It can be tempting to think that wasting food is not a big deal because we have so much of it, but an increasing number of people around the world are really hurting these days. In fact, it has been estimated that there are more than a billion hungry people around the globe right now. So as a society we need to figure out how to waste a whole lot less food and how to get it into the mouths of those that really need it.
- US & Clinton Beyond the Law-Catherine Austin Fitts
Financial expert and former Assistant Secretary of Housing, Catherine Austin Fitts, says the U.S. government’s actions with Hillary Clinton means it is more lawless than ever. Fitts explains, “The entire country now looks like Arkansas . . . we’ve all turned into Mena, Arkansas, now. It’s pretty tragic. I have watched for two decades while 80% of the federal budget and federal credit has been run outside the Constitution and the laws related to financial management. I have never seen anything as blatant and outrageous as Loretta Lynch, prior to Hillary Clinton’s interview with the FBI, meeting with her disbarred husband, who is either the husband of or the target of a criminal investigation, and basically briefing him, I am assuming and what I believe on what Hillary needs to know, so she can skate the (FBI) interview. What the President, Lynch and Comey don’t want is the investigative team recommending to indict. . . . If you know anything about civil or criminal procedures, this is so beyond the law. This is so over the top that I have never seen anything more outrageous. It’s beginning to look like Mena, Arkansas, during the Mena drug running.”
- Those That Wanted To Get Prepared Have Already Gotten Prepared By Now
Is the time for warning people to prepare for what is ahead coming to an end? For years, bold men and women all over America have been sounding the alarm and warning people to get prepared physically, financially, mentally, emotionally and spiritually for the great storm that is rapidly approaching. Personally, I have written more than 2,500 articles on my primary two websites combined, and so nobody can accuse me of not blowing the trumpet. It has gotten to the point that sometimes I am even tired of listening to myself warn the people. But now we are shifting into a new phase.
- The Dow And The S&P 500 Soar To Brand New All-Time Record Highs – How Is This Possible?
The Dow and the S&P 500 both closed at all-time record highs on Tuesday, and that is very good news. You might think that is an odd statement coming from the publisher of The Economic Collapse Blog, but the truth is that I am not at all eager to see the financial system crash and burn. We all saw what took place when it happened in 2008 – millions of people lost their jobs, millions of people lost their homes, and economic suffering was off the charts. So no, I don’t want to see that happen again any time soon. All of our lives will be a lot more comfortable if the financial markets are stable and stocks continue to go up. If the Dow and the S&P 500 can keep on soaring, that will suit me just fine. Unfortunately, I don’t think that is going to be what happens.
- More Islamic Terror in France, Black Lives Matter is False Narrative, Phony Stock Market Highs
France has been hit once again by Islamic terror–this time in Nice. The French Riviera town was struck during Bastille Day celebrations by a terrorist who used a truck to mow down dozens of people. French media says ISIS is claiming responsibility for the heinous crime. The USA Today keeps propelling false narratives with the “Black Lives Matter” (BLM) movement and helping out the Democratic presumptive nominee Hillary Clinton with what can only be described as biased one-sided reporting. “Black Lives Matter” has been described as “racist” by former NYC Mayor Rudolph Giuliani. This week, the USA Today staff put a picture on the front page with a BLM protester that read “Killer cops make cop Killers.” BLM basically claims white police officers are hunting down black men and murdering them on purpose. This is a total lie, and is refuted by a brand new study from Harvard. USA Today would not comment on the editorial decision of the newspaper to put forth a totally false narrative.
- War Is Coming And The Global Financial Situation Is A Lot Worse Than You May Think
On the surface, things seem pretty quiet in mid-July 2016. The biggest news stories are about the speculation surrounding Donald Trump’s choice of running mate, the stock market in the U.S. keeps setting new all-time record highs, and the media seems completely obsessed with Taylor Swift’s love life. But underneath the surface, it is a very different story. As you will see below, the conditions for a “perfect storm” are coming together very rapidly, and the rest of 2016 promises to be much more chaotic than what we have seen so far.
- Defence giant says UK could be more attractive to invest post-Brexit vote
One of the world’s largest defence contractors has said that the UK could become a more attractive place to invest, after Brits voted to leave the European Union. Marillyn Hewson, the chief executive of Lockheed Martin, told the Sunday Times that the weaker pound could make exporting from Britain more lucrative. Lockheed builds gun turrets for the UK’s Ajax and Warrior tanks at its factory in Bedfordshire, which it hopes to export to other countries. It’s also the main contractor for Britain’s plans to buy 138 F-35 fighter jets for the Royal Air Force and the Royal Navy. Hewson added that the UK’s attractiveness as a place to invest post-Brexit vote would depend “”on the government and the policies its puts in place”.
- Why Italy’s banking crisis will shake the eurozone to its core
They call them le sofferenze – the suffering. The imagery is striking, the thousands of sofferenze across Italy, unwanted and ignored, a problem unsolved. But despite the emotional name, these are not people. They are loans. Bad debts, draining banks of profits and undermining economic growth. The name is less clinical than the English term “non-performing loans”, a reflection of the Italian authorities’ emotional rather than business-like approach to the problem. None the less, the loans are indeed causing real suffering. The €360bn (£300bn) of sofferenze from Italian banks show borrowers are weighed down with debts they cannot afford, while the banks are struggling to offer new credit to the households and firms that need them.
- UK Opens ‘Very Fruitful’ Trade Talks With Canada
Britain opened “very fruitful” trade talks with Canada on Friday, International Trade Secretary Liam Fox told the Sunday Times newspaper as he prepares to renegotiate Britain’s commercial ties following its vote last month to leave the European Union. In limited extracts of his interview, Fox said he would soon travel to the United States to ensure that Britain was not at the back of the queue in trade talks as President Barack Obama had suggested before the June 23 vote. He said was “scoping” about a dozen free trade deals outside the EU to be ready for when Britain leaves, some with countries that had indicated they wanted a quick deal and others with some of the world’s major economies.
- Middle East: The Rest of the Story
Want to know what is really happening in the Middle East? Pastor Lindsey Williams created a 3-DVD set entitled “Middle East: The rest of the Story” and it includes topics: “Future Price of Crude Oil”, “Future Price of Gasoline and Diesel”, “Future Grocery Prices”, “Explosive Growth to US Crude Production”, “China and the US”, “The Future of Islam”, “Riots in the Middle East”. This 3-DVD set is very important if you want to know what is happening right now in the Middle East.
- “This Is Going To Get Very Ugly” – Former Top CIA Officer Says “Obama Has Lost Control Of The Middle East”
With Thursday’s tragic mass killing by a resclusive, truck-driving Tunisian maniac in Nice having been violently drowned out by the frentic late Friday news of a failed (and perhaps staged) coup in Turkey, the news cycle has once again shifted its attention away from a far greater threat to the global economy than whether Erdogan can concentrate even more power in his grasp. Namely, both lone-wolf and organized terrorism in Europe (and elsewhere). And according to at least one CIA field commander, Gary Bernsten, it is all Obama’s fault. As the Hill reports, the decorated former CIA career officer who served in the Directorate of Operations between October 1982 and June 2005, said on Friday that Obama has lost control of the Middle East following attacks in France that left at least 84 dead. “This is going to get very, very ugly,” Gary Bernsten said on Fox & Friends Friday.
- Turkish Central Bank Pledges “Unlimited Liquidity” On Bank Run Fears: Wall Street’s Take
Late on Friday afternoon, just as the market was closing and news of the Turkish coup spread, Turkish ETFs tumbled and the Lira dropped the most in 8 years on investor concerns about the future of the country, and a spike in social media reports that local depositors were – understandably – pulling their money from banks, potentially sparking a bank run. The Turkish Lira losses added to its woes after having slid 20% last year; the currency has now lost more than 40% of its value since the end of 2012. And while the (allegedly staged) coup has been put down, questions remained about the stability of the Turkish financial system. Which is why early today, Turkey’s central bank held an extraordinary meeting with bank executives to discuss ways to minimize the market impact of the coup attempt. The bank convened members of the Banks Association of Turkey, and shortly after announced a series of steps which, comparable to the post-Brexit reaction, sought to stabilize risk assets.
- Morgan Stanley: “To Make Up For A 10% Drop In The S&P, Treasury Yields Would Need To Go… Negative”
With both the S&P500 and Treasury prices hitting record highs as recently as one week ago, many have been confused (perhaps none more so than Goldman’s clients as we reported yesterday), although the conventional fallback explanation that has again emerged, is a reversion back to the “Fed Model” according to which the lower yields go, the highest equity multiples should (and may) rise. As a bearish Goldman explained, “bullish investors argue that sustained low rates will support P/E multiples of 20x or more. The Fed Model relates the earnings yield (5.7%) to the Treasury yield (1.5%). The current 420 bp yield gap is near the 10-year average. Exhibit 2 shows the sensitivity of this model. Assuming a steady bond yield, reversion to the 35-year average gap of 250 bp implies a S&P 500 year-end level of 3075 while the 5-year average gap implies 1900.” For the record, Goldman is not a fan of a 3,000+ S&P target, and instead expects the market to drop in the coming months.
- “The Credit Ponzi Is Dead” – Brexit Or Not, The Pound Will Crash
Status quo, as our generation know it, established in 1945 has plodded along ever since. It is true that it have had near death experiences several times, especially in August 1971 when the world almost lost faith in the global reserve currency and in 2008 when the fractional reserve Ponzi nearly consumed itself. While the recent Brexit vote seem to be just another near death experience we believe it says something more fundamental about the world. When the 1945 new world order came into existence, its architects built it on a shaky foundation based on statists Keynesian principles. It was clearly unsustainable from the get-go, but as long as living standards rose, no one seemed to notice or care. The global elite managed to resurrect a dying system in the 1970s by giving its people something for nothing. Debt accumulation collateralized by rising asset values became a substitute for productivity and wage increases. While people could no longer afford to pay for their health care, education, house or car through savings they kept on voting for the incumbents (no, there is no difference between center left and right) since friendly bankers were more than willing to make up the difference.
- Why the Gold Price is Rising, and Why it will Continue to do so
Do you remember last year, when an opinion piece in the Wall Street Journal referred to gold as nothing more than a ‘pet rock’? At the time, gold was trading for around US$1,130 an ounce. A year later, gold is trading around US$1,350 an ounce (up around 20%), while the S&P 500 is up only a few percent, despite closing at another record high today, at 2137 points. The author of that article, Jason Zweig, returned last week in his regular Intelligent Investor column to defend his pet rock call. While he acknowledged some important reasons for gold’s enduring allure, he trotted out some pretty lame reasons for sticking with his 2015 call that gold is basically just a rock.
- Gold Has Important Place in Investment Portfolio as Paper Currency Wanes
On Tuesday we got not especially coherent statements from three Federal Reserve bank Presidents. St. Louis Fed President James Bullard was dismissive of the impact of the UK referendum on the U.S. and yes, directly, the UK doesn’t matter that much. What will matter will be the impact on the U.S. of slowing growth in the Eurozone. According to the IMF, growth will slow down as a consequence of the Referendum to 1.6 percent this year and 1.4 percent in 2017. Both years were revised down from 1.7 percent.
- New Stock Market Highs Correlate to $57 Trillion in Printed Global Currency Units
When people use the term “money,” it usually refers to a unit of currency used in the transacting of business and commerce. A woman works cleaning houses for a week and gets paid in a number of currency units and then goes to the supermarket and exchanges those units for food or diapers or medicine. What is left over at the end of the pay period is called “savings,” which are allowed to accumulate receiving a modest rate of interest. Around the globe this weekend, a vast number of banks are offering negative returns on savings, such that keeping one’s accumulated units of currency in the bank is penalized. The objective of this monetary experiment is to combat the global problem of deflation. Despite $57 trillion of new currency units having been printed since the 2009 financial crisis, global growth has been tepid at best because the velocity of “money” has remained moribund and since all collateral underpinning this massive global debt must not be allowed to depreciate, the central banks have been allowed to engage in a massive, coordinated reflation designed to jumpstart “money” velocity.
- Ignore Pullbacks As Top Analyst Says Gold To Hit New All-Time Highs, Plus A Shocking Chart
With continued wild trading in global markets, one of the top analysts in the world says ignore pullbacks as price of gold to smash through all-time highs. There is also a shocking chart included in this fantastic piece. “Markets say the ECB is done, their box is empty… But we are magic people. Each time we take something and give to the markets – a rabbit out of the hat.” — Vitas Vasiliasukas, member of the ECB’s Governing Council. Today King World News is featuring a piece by a man whose recently released masterpiece has been praised around the world, and also recognized as some of the most unique work in the gold market. Below is the latest exclusive KWN piece by Ronald-Peter Stoeferle of Incrementum AG out of Liechtenstein.
- Gold Price of $1,400 is just the Start – Vaneck
Although gold prices are down from last week’s two-year high, one investment firm sees $1,400 an ounce as just the start as the market remains in a new bull uptrend. In a report released Tuesday, Joe Foster, gold strategist at VanEck, said that the firm is expecting gold prices to reach $1,400 an ounce in the second half of the year, adding “and we do not believe it will end there.” Tuesday, August gold futures have seen renewed selling pressure with prices last trading at $1,336.50 an ounce, down almost 1.5% on the day. What is the driving the next leg of the renewed secular bull market is the fact that investors are being more proactive, he said. He added that inflows into gold-backed exchange-traded products are at their highest level since 2009, when investors sought out safe-haven assets during the sub-prime credit crisis.
- The IRS wants a Piece of Your Gold and Silver Profits: Here’s what You Need to Tell Them… And What You Don’t
With gold and silver gaining popularity as safe haven assets during economic crisis there is a strong possibility that we’ll see prices go to all-time highs in the future. With those price increases will come windfall profits for investors. And, as you already know, where there’s profit, there’s a government with its hands in your pocket trying to get a piece of the action.
- Did Citi Just Confiscate $1 Billion In Venezuela Gold
Just over a year ago, cash-strapped Venezuela quietly conducted a little-noticed gold-for-cash swap with Citigroup as part of which Maduro converted part of his nation’s gold reserves into at least $1 billion in cash through a swap with Citibank. As Reuters reported then, the deal would make more foreign currency available to President Nicolas Maduro’s socialist government as the OPEC nation struggles with soaring consumer prices, chronic shortages and a shrinking economy worsened by low oil prices. Needless to say, the socialist country’s economic situation is orders of magnitude worse now. According to El Nacional, “the deal was for $1 billion and was struck with Citibank, which is owned by Citigroup.”
- Venezuela army deployed to control food production and distribution
Venezuela’s military has taken control of five ports in an effort to guarantee supplies of food and medicine. In a decree, President Nicolas Maduro has ordered the army to monitor food processing plants, and co-ordinate the production and distribution of items. Venezuela is going through a deep economic crisis despite having the world’s largest oil reserves. Basic products are increasingly hard to find and many say they struggle to feed their families. The Venezuelan Bishops Conference said the rise of the military is a “threat to tranquillity and peace”. Mr Maduro says the measure is to fight the “economic war” he claims is being waged against his government by political foes and businessmen, with US backing. But the opposition says the government has mismanaged the economy, and has called for a referendum to oust the president.
- Energy Failures Push U.S. High-Yield Default Rate to 6-Year High
U.S. high-yield bonds in default reached the highest levels in at least six years as more energy companies buckled under pressure from stagnant oil prices. Speculative-grade U.S. defaults spiked to 5.1 percent of the total outstanding in the second quarter from 4.4 percent in the first, according to a July 12 report from Moody’s Investors Service. The global high-yield default rate could finish the year at 4.9 percent, with the U.S. as much as 6.4 percent, Moody’s said.
- There’s a war on its way, and it will make Iraq look like child’s play
War is on many people’s minds at the moment. But whilst most of the public are focused on wars of the past after the release of the Chilcot report, our leaders are plotting one for the future. And, if their rhetoric is anything to go by, it’s going to be on a scale we have never seen before. So, where’s the media flurry? Or the political fire being shot across the Commons over the issue? It’s nowhere to be seen. And that glaring oversight, or purposeful omission, could be what lets us sleepwalk into World War III.
- Theresa May’s husband is a senior executive at a $1.4tn investment fund that profits from tax avoiding companies
The relatively unknown investment fund where Theresa May’s husband Philip works as a senior executive is one of the world’s largest and most powerful financial institutions, controlling $1.4 trillion in assets. Its portfolio also includes $20 billion of shares in Amazon and Starbucks, both of which were cited by the Prime Minister-designate in her pledge to crack down on tax avoidance yesterday. Latest filings to US authorities show that Los Angeles based Capital Group owns huge stakes in a variety of companies, including investment bank JP Morgan Chase, defence giant Lockheed Martin, tobacco company Philip Morris International, the pharmaceutical sector’s Merck & Co, and also Ryanair.
- Russian leader sacks EVERY commander in his Baltic fleet after ‘they refused to confront Western ships’
RUSSIAN President Vladimir Putin has taken a page out of Joseph Stalin’s book — and sacked every commander in his Baltic fleet. As many as 50 senior officers including a Vice Admiral have been purged by Vladimir Putin amid reports they refused to confront Western ships. Other Russian news sites also speculated that attempts to cover up a crash between a Russian sub and a Polish boat may have been behind the bloodletting. But given the endemic nature of corruption and incompetence across the Russian military, Western analysts are scratching their heads as to the real reason behind the purge.
- Gestapo America — Paul Craig Roberts
FBI Director James Comey got Hillary off the hook but wants to put you on it. He is pushing hard for warrantless access to all of your Internet activity. Comey, who would have fit in perfectly with Hitler’s Gestapo, tells Congress that the United States is not safe unless the FBI knows when every American goes online, to whom they are sending emails and from whom they are receiving emails, and knows every website visited by every American. In other words, Comey wants to render null and void the Fourth Amendment of the US Constitution and completely destroy your privacy rights. The reason Washington wants to know everything about everyone is so that Washington can embarrass, blackmail, and frame on felony charges patriots who stand up in defense of the US Constitution and the rule of law, and dissidents who criticize Washington’s illegal wars, reckless foreign policies, and oppression of American citizens.
- Millions Wiped Off Commercial Property Market
The scale of damage to Britain’s commercial property market by Brexit has been laid bare by new figures showing prices have fallen and millions of pounds of deals have collapsed. According to industry insiders, one in three major property investment deals has fallen through in the wake of Britain’s vote to leave the EU. Prices across Britain’s commercial property market, which includes office blocks, shopping centres and workplaces, are estimated to have fallen by 10-15% in the days after the vote. And an estimated £500m worth of so-called “Brexit clauses” have been triggered, meaning ongoing deals to buy and sell buildings have been cancelled or renegotiated.
- Some disturbing figures about the upcoming banking crisis
In early 1870, the Kingdom of Prussia and French Empire were about to go to war. It was one of countless conflicts between the dozens of European kingdoms and empires throughout the 18th and 19th centuries, and this one was over before it even started. Prussia’s military might was legendary. They had recently beaten the pants off of Austria and Denmark, and they’d go on to neutralize or capture over 80% of French soldiers within a matter of months, while losing just 2% of their own. Very few wars have been so one-sided. And yet despite its nearly unparalleled military successes and clear dominance in European politics, Prussia lacked something critical: financial power.
- Russia passes ‘Big Brother’ anti-terror laws
Russia’s parliament has passed harsh anti-terrorism measures that human rights campaigners including the NSA whistleblower Edward Snowden say will roll back personal freedoms and privacy. The lower house of parliament voted 325 to 1 on Friday to adopt the “Yarovaya law”, a package of amendments authored by the ruling United Russia party member Irina Yarovaya, who is known for previous legislative crackdowns on protesters and non-governmental organisations. Snowden, who has lived in Russia since receiving asylum in 2013, tweeted on Saturday that the “Big Brother law” was an “unworkable, unjustifiable violation of rights” that would “take money and liberty from every Russian without improving safety”.
- Robots will replace a quarter of business services workers by 2035, says Deloitte
A quarter of jobs in Britain’s business services sector are at “high risk” of automation within the next two decades, according to a new report. Accountancy firm Deloitte warned that robots could replace a fifth of jobs in administrative roles such as telecoms and IT by 2035 as falling technology costs and rising wages make automation increasingly attractive. Deloitte said that around 3.3 million jobs could be classified as business services roles, and that of those, there was a “high chance” that 800,000 to one million jobs would no longer be performed by humans over the period.
- 90% Of June Job Gains Went To Workers 55 And Older
While the algos have long forgotten about today’s job report whose headline was good enough to unleash an epic buying spree which has pushed the S&P to the highest level since July 2015, a quick read between the lines reveals a continuation of some recent troubling trends, namely that all job gains in recent years have gone exclusively to the oldest segment of the population, those 55 and older. First, as the chart below shows, when breaking down the job additions by age group as per the Household Survey, of the 180K jobs added in this particular survey, 259,000 were in the 55 and over age group, while only 28,000 were added in the critical 25-54 age group. Young workers, those under 24, lost a collective 107,000 in June. In other words, 90% of all job gains in the month went to workers 55 and over.
- NRA: Restaurant performance weakens in May
Restaurant sales softened in May, along with operator expectations, as the industry continued its choppy 2016, according to the latest Restaurant Performance Index from the National Restaurant Association. The monthly indication of the health of the industry fell 0.9 percent to 100.6 in May, from 101.6 in April. The NRA considers the industry to be in expansion mode if the index is above 100. “The RPI continued along a choppy trend line in May, with the index bouncing between moderate gains and losses in recent months,” Hudson Riehle, senior vice president of research for the NRA, said in a statement.
- Bill Gates And Other Billionaires Backing A Nuclear Renaissance
Let’s for a second imagine a world without nuclear energy. That’s a tough one but let’s try. No nuclear bombs, of course, no Chernobyl and Fukushima, no worries about Iran and North Korea. A wonderful world, maybe? Probably not, because without nuclear energy we would have burned millions more tons of coal and billions more barrels of oil. This would have brought about climate change of such proportions that what we have today would have seemed negligible. Nuclear energy and uranium, which feeds it, are controversial enough even without any actual accident happening. Radioactivity is dangerous. Nobody is arguing against it. When an accident does take place, the public backlash is understandably huge. What many opponents of uranium forget to mention, however, are the benefits of nuclear energy and the fact that the statistical probability of serious accidents is pretty low. They focus on the “What if?” and neglect the other side of the coin. But let’s try to see both sides of the issue.
- Malls Push Out Department Stores
At the Florida Mall in Orlando, Nordstrom was torn down and replaced with a Dick’s Sporting Goods store and a crayon-based family attraction called the Crayola Experience. The Saks Fifth Avenue was demolished, too, to make way for a dining pavilion with 23 restaurants. And Lord & Taylor was carved into space for American Girl, H&M, Forever 21 and Zara. Once the linchpin of American shopping malls, department stores are being displaced by newer types of retailers that do a better job of driving shoppers to the centers and lifting overall mall sales. Landlords are nudging out the once-coveted big box chains in favor of sporting-goods retailers, fast-fashion chains, supermarkets, gyms, restaurants, movies theaters and other types of entertainment as they seek to keep their properties relevant in an age increasingly dominated by online shopping.
- Who’s Most Afraid of Contagion from Italy’s Bank Meltdown? French and German banks
Contagion is the reason Italy’s banking crisis is all of a sudden Europe’s biggest existential threat. Greece’s intractable problems are out of sight, out of mind; Brexit momentarily spooked investors and bankers; but Italy’s banking woes have the potential to wipe out investors and undo over 60 years of supranational state-building in Europe. The last few days have seen growing calls for taxpayer-funded state intervention, a practice that was supposed to have been consigned to the annals of history by Europe’s enactment of new bail-in rules on Jan 1, 2016. The idea behind the new legislation was simple: never again would taxpayers be left exclusively holding the tab for European banks’ insolvency issues while bondholders were getting bailed out. But even before the new rules have been tried out, they are about to be broken, or at least bent beyond all recognition.
- Congress: “Too Big to Jail: Inside the Obama Justice Department’s Decision Not to Hold Wall Street Accountable”
The US House of Representatives today released the results of its three-year investigation – hampered along the way by the Department of Justice and the Department of the Treasury – into why HSBC and its executives weren’t prosecuted. Empirical evidence has told us for years that in the US a bank and its executives cannot be prosecuted if the bank is big enough. We’ve come to call this type of bank “Too Big to Jail.” Empirical evidence has also told us that a bank can do essentially whatever it wants to, given that, if caught, it may have to pay a fine that then becomes just part of the cost of doing business. Wall Street doesn’t care about fines. They’re “extraordinary items” that banks and analysts systematically exclude from their “ex-items” per-share earnings. Fines matter under GAAP reporting. But they don’t matter in the rosy picture that Wall Street paints of the banks. And so they don’t matter.
- Merchants Of War: U.S. Arms Export Reaches All-Time High At $47 Billion in FY 2015
International demand for U.S. weapons systems is expected to continue growing in coming years, a senior U.S. Air Force official said on Sunday, citing strong interest in unmanned systems, munitions and fighter jets. “The appetite just keeps getting bigger and bigger,” U.S. Air Force Deputy Undersecretary Heidi Grant told Reuters in an interview on the eve of the Farnborough International Airshow. U.S. arms sales approved by the Pentagon’s Defense Security Cooperation Agency rose 36 percent to $46.6 billion in the fiscal year ended Sept. 30, 2015, and are likely to remain strong this year, Grant said. Grant, the Air Force’s top international arms sales official, said she was working with many countries in eastern Europe and others that wanted to increase their defenses following Russia’s annexation of the Crimea region of Ukraine, but faced tough budget constraints.
In the year 1971 Lindsey Williams went to the state of Alaska to become an aviation missionary. Shortly after arriving in Alaska, Mr. Williams heard the oil companies were going to build the Trans-Alaska Oil pipeline and that 25,000 pipeliners were going to converge on the state to build it. Mr. Williams consequently volunteered his services as chaplain on the pipeline. Shortly after becoming chaplain, Alyeska Pipeline Service Company offered him executive status and invited him to sit in on their board meetings in an advisory capacity to help the relationship between management and labor. What he heard over the next three years time would change his life. He learned that OPEC had nothing to do with the price of oil but that the elite of the world controlled it. Mr. Williams knew he had to put into print what he saw and heard in order to inform the American people. His story is documented in The Energy Non Crisis.
From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. Please LIKE the Lindsey Williams Online Facebook Page to see stories posted daily regarding the current state of the economy around the world.
Latest News From July 8, 2016 to July 14, 2016:
- Global Economy Critical Condition Code Blue-Rob Kirby
Macroeconomic analyst Rob Kirby says don’t trust the stock market’s rise to new all-time highs. The global economy is in terminal trouble, and Kirby explains, “My view of the financial system as it sits today is we are in an intensive care unit, and we have a lot of tubes and wires connected to us right now. The question you are asking me is how long is a person in critical condition in an intensive care unit going to live? I don’t really know the answer to it other than we could get a code blue any day. We could get a code blue tomorrow . . . code blue is when somebody has passed.”
- Gold has ‘unlimited upside’ because the Fed is ‘confused’ on policy: Trader
Gold just posted its longest weekly winning streak since July 2011, but if investors missed out on the recent rally, fear not. One trader says the commodity has “unlimited upside,” and investors have the Federal Reserve to thank for it. On CNBC’s “Futures Now” this week, Tom Colvin said that gold will remain in a bull market that will only come to an end “when central banks take their hands out of the cookie jar.” The Federal Reserve is unlikely to hike rates in the foreseeable future, despite a blockbuster June employment report on Friday.
- Peter Schiff Warns of the “Worst Economic Downturn Including the Great Depression”
The Federal Reserve’s monetary policies have manufactured a “super bubble” that “…may give us the worst economic downturn including the Great Depression,” economist Peter Schiff declared during an interview with Accuracy in Media. Schiff is the CEO of Euro Pacific Capital, and a guest commentator on CNBC. He explained that low interest rates prop up the government’s feckless fiscal policies and generate “…really systemic structural problems in the economy…” that “manifest themselves in bubbles that then burst. …the Fed’s policy does not work and has not solved our problems, it has simply exacerbated our problems, and…we’re gonna have a currency crisis, we’re gonna have a sovereign debt crisis and it’ll make the financial crisis of ’08 really look like the Sunday school picnic,” he said.
- “The World Is Walking From Crisis To Crisis” – Why BofA Sees $1,500 Gold And $30 Silver
With both stocks and US Treasury prices at all time highs the market is sensing that something has to give, and that something may just be more QE, which likely explains the move higher in gold to coincide with both risk and risk-haven assets. As of moments ago, gold rose above $1,370, and was back to levels not seen since 2014. Curiously, the move higher is taking place after Friday’s “stellar” jobs report, suggesting that someone does not believe the seasonally-adjusted numbers goalseeked by the BLS. And while we reported last week that one way investors are rushing into the anti-QE safety of gold is by buying paper gold derivatves such as ETFs, which rose above 2,000 tons for the first time since 2013, many others have bypassed paper claims on gold such as GLD entirely, and are rushing into physical.
- 2016: The Big Shift
As we close 2015 and begin a new year, the markets generally closed flat to neutral with a warning that as we approach the political year from hell (2017) that this is by no means going to be a walk through the park. We are more likely than not going to see some trends conclude in 2016 and others perform a false move to scare the hell out of everyone. Nevertheless, the stars may not be aligning, but the markets appear to be setting the stage to align for the BIG SHIFT. What does the BIG SHIFT mean? It means that as we face a meltdown in socialism, which has taken hold of western governments and destroyed our underlying democratic foundations, ALL assets must prepare for the HEDGE against government.
- The Federal Reserve’s Grand Scheme Exposed (In 1 Simple Chart)
For 138 years, consumer prices in America slightly declined. After The Federal Reserve was created, things changed… The ascent of the non-1% peaked when the Deep State forced Nixon to depart from the gold standard’s constraint on largesse. Which should also clarify just why to the “1%”, including their protectors in the “developed market” central banking system, their tenured economist lackeys, their purchased politicians and their captured media outlets, the topic of a return to a gold standard is the biggest threat conceivable.
- Pension horror – as retirees get an eighth of what was predicted
Pension savers, who opened with-profits policies in the 1990s, could receive a fraction of the cash they were told they’d get when they started saving. A report has revealed that some people who would told they could expect around £29,000 a year in retirement could in fact get just £3,774. Money Mail has published the figures, which have been caused by two crushing forces: with-profits disasters, and annuity pain.
- S&P 500 near record highs? Treasury yields at lows? Something’s gotta give
It’s a tug of war between stocks and bonds, at least, it feels that way. The S&P 500 were on pace to surpass a record closing high of 2,130.82 on Monday as Treasury yields held at record lows. The sharp swing higher for stocks was sparked by a June jobs report that showed that the U.S. created 287,000 new jobs in June, quelling some of the nagging fears that the labor market was beginning to sputter after the May report showed a measly 38,000 jobs (later cut to 11,000) were added.
- Obama Pretty Much Shuts Down Offshore Drilling In Alaska
The Obama administration announced new safety regulations Thursday that would place extremely strict limits on offshore drilling for oil and natural gas off the coast of Alaska. The New York Times reported the regulations, finalized by the Department of the Interior, are seen as intended to reduce investment and harm energy production in the region. The New York Times stated that the rules are “the latest in a series of Obama administration rules designed to slow the extraction of fossil fuels from American public lands and waters.”
- Lessons from the worst banking crisis in history
It’s ironic that some of the most honest words to come out of a politician’s mouth were, “When it becomes serious you have to lie.” That was a quote from Jean-Claude Juncker, former Prime Minister of Luxembourg and President of the European Commission (the EU’s executive branch) in 2011 when asked about Greece’s financial crisis. Greece was on the ropes and the entire system about to collapse, so, of course they lied. Then they lied about lying. This raises a very reliable rule of thumb to keep in mind during (and before) a banking crisis: don’t trust anyone in the establishment, especially a politician. It’s good advice these days.
- The U.S. Government Is Targeting Your Retirement Savings… Here’s What You Can Do
Even before the Obama Administration introduced the new myRA program last year, there were whispers that the U.S. government would “assume some risk” for U.S. retirement accounts. That makes for a nice sound bite, but it’s really code for forcing American savers to buy government bonds. Here’s how it works. There’s no minimum balance to open a myRA account. And the accounts don’t incur fees. However, your myRA can only invest in U.S. Treasuries, which probably won’t even come close to keeping up with the real rate of inflation. In other words, what myRAs really offer is “return-free risk.”
- Are You Planning Your Retirement? Forget About It. You Won’t Survive To Experience It.
The Israeli agents who comprise the Neoconservatives, a collection of war criminals that control US foreign policy, have already handed you your death certificate. The neoconservatives have far more power than they have intelligence or humanity. At the recent St. Petersburg International Economic Conference, President Putin excoriated Western Journalists for endlessly repeating Washington’s lies that are driving the world to nuclear war. He asked Washington’s bought-and-paid-for-whores, the scum who comprise the Western news media: “How do you not understand that the world is being pulled in an irreversible direction toward nuclear war?” Yes, indeed, how is it possible for the Western media to be totally blind? The answer to this question is that Americans live in the system of lies that comprise The Matrix, and media are paid to support the system of lies. The determining questions are: Can Americans escape their captivity in time to save life on earth? Do Americans have what it takes, or are Americans already a proven failed people who cower in ignorance under the threat of implausible “foreign threats”?
- A Drone Was Used to Blow up a US Citizen Without Trial Yesterday. Let That Sink In
The Dallas shootings have ushered in a very new world for U.S. citizens. For the very first time, a drone has been used on U.S. soil to kill an American without trial or charges.
The suspected shooter in yesterday’s tragic killings, U.S. Army veteran Micah Xavier Johnson, was, according to police and press reports, holed up in a parking garage and would not give himself up. After hours of what police claimed were fruitless negotiations with Johnson, a weaponized robot was sent to where he was hiding and blown up, taking Johnson with it.
- Massive Stockpile Means Oil Rebound Is Over
A massive global stockpile of oil could mean trouble ahead for the global crude market, according to Barclays. Crude oil prices dropped to a two month low on Thursday, after the Energy Information Administration reported a smaller-than-expected decrease in oil stockpiles. That may be a canary in the coalmine, a top energy market watcher explained. “For the last 6 quarters there’s been this discrepancy between global supply and global demand,” Michael Cohen, head of energy commodities research at Barclays, said last week on CNBC’s “Futures Now.”
- Japanese savers flood into gold fearing the endgame is close
For all the talk about the surging yen as the biggest threat to Japan’s embattled economy, the truth is that there is another soaring currency (and asset) that is far more troubling for Shinzo Abe. Gold. While in past decades, the natural instinct of Japanese savers when faced with financial uncertainty has been to rush into the “safety” of cash (after all why allocate funds to government bonds that yield almost, or less, than nothing) as we recently showed in Safes Sell Out In Japan and Demand For Big Bills Soars As Japan Stuffs Safes With 10,000-Yen Notes, now something has changed. That something is increasing loss of faith in Japan’s currency.
- Keep an Eye on the Dollar: It’s More Important than Ever. Global demand is the main concern right now
I have, on many occasions in the past in these pages, touched on the relationship between oil and the U.S. Dollar. The basics of that relationship are obvious: oil is priced in dollars on the global market, so from a logical perspective a strong dollar must put pressure on oil prices and vice versa. If the currency is worth more generally then anything priced in it is, relatively speaking, worth less…the price of that commodity goes down. This is not a tick for tick relationship, but over time and when broader trends emerge it generally holds true. That is reason enough for those who trade and invest in the energy sector to keep an eye on the dollar, but right now it may be even more important than ever.
- 2 Signs the government is planning to confiscate your retirement funds
We’ve warned that bankrupt governments will be eyeing the multi-trillions of dollars in “un-taxed” retirement funds when they get desperate enough. Total funds currently held in private IRA and 401K accounts in the US are estimated to be in the neighborhood of $10 trillion. As we dance on the brink of a massive collapse, the government’s already empty coffers will be even further decimated as the economy contracts massively and tax receipts plummet. In that moment, rather than reducing expenditures and doing massive layoffs and closures of departments, like any regular business would do, politicians will nationalize retirement funds for the “good of the country”.
- Black Hole of Negative Rates Is Dragging Down Yields Everywhere
The free fall in yields on developed-world government debt is dragging down rates on global bonds broadly, from sovereign debt in Taiwan and Lithuania to corporate bonds in the U.S., as investors fan out further in search of income. The ever-widening rush for yield could create problems if interest rates snap back, which would cause losses on investors’ low-yielding portfolios, or if credit quality falls. And the global yield grab is raising questions about whether rates can prove reliable economic indicators. Yields in the U.S., Europe and Japan have been plummeting as investors pile into government debt in the face of tepid growth, low inflation and high uncertainty, and as central banks cut rates into negative territory in many countries.
- Repeat Of 70s Pattern Shows That A $675 Silver Price Is Realistic
In my previous silver article, I highlighted a very bullish pattern/fractal on the 100-year silver chart. It was a very big picture view of silver, which is really difficult to perceive within our current reality. However, at some point in time, it will catch up with our current reality. This will likely happen when the monetary system collapses. Silver, even more than gold, is the opposite of what is considered a monetary asset (debt, like a federal reserve note), today. This is mainly because silver has been completely demonetized, whereas gold is still a part of the current system (think central banks gold reserves). When the illusion of money (value) is exposed for what it is (worthless paper or digits), then people will demand real money (value) like silver and gold.
- Everything we love to eat is a scam
Among the many things New Yorkers pride ourselves on is food: making it, selling it and consuming only the best, from single-slice pizza to four-star sushi. We have fish markets, Shake Shacks and, as of this year, 74 Michelin-starred restaurants. Yet most everything we eat is fraudulent. In his new book, “Real Food Fake Food,” author Larry Olmsted exposes the breadth of counterfeit foods we’re unknowingly eating. After reading it, you’ll want to be fed intravenously for the rest of your life.
- George Soros predicts riots, police state and civil war for America
Billionaire investor George Soros has a new prediction for America. While it might be as dire as it gets for the financial wiz, this bet concerns more than just the value of the buck. According to Soros, there’s about to be an all-out class war. Soros, who is 81, previously bet against the British pound in the early 90s and made $1 billion off its collapse. In the years since, he’s remained active in investing, but also in advocacy. He’s helped keep Wikipedia afloat thanks to impressive contributions and through donations to the Tides Center, has indirectly funded Adbusters, the Canadian anti-capitalist magazine that put Occupy Wall Street on the map. Speaking to Newsweek recently, Soros neglected to acknowledge his past successes, but instead offered a word of warning: a period of “evil” is coming to the western world.
- How to destroy America in eight easy steps
Just over eleven years ago, in June of 2005, an immigration overpopulation conference in Washington, DC, was held to review issues of immigration. It was filled to capacity by many of America ‘s finest minds and leaders. Dick Lamm as the former Governor of Colorado (D) gave an eye-opening speech. A brilliant college professor by the name of Victor Davis Hanson talked about his latest book, ‘Mexifornia,’ explaining how immigration – both legal and illegal was destroying the entire state of California. He said it would march across the country until it destroyed all vestiges of The American Dream. Moments later, former Colorado Governor Richard D. Lamm stood up and gave a stunning speech on how to destroy America. The audience sat spellbound as he described eight methods for the destruction of the United States.
- WTF Chart Of The Day – Factory Orders Collapse To Longest Streak In US History
For the 19th month in a row, US Factory Orders decline YoY (-1.2% for May) with a 1% drop MoM. Simply put, in 60 years of historical data, the US economy has never, ever suffered a 19 month stretch of consecutive annual declines. And yet we are supposed to believe there is no recession?
- AG Lynch Announces Global Police Force Partnership With UN
During her speech at the United Nations, Attorney General Loretta Lynch announced that the Department of Justice is launching a global police force in order to combat “violent extremism” in the United States. A proposal such as this, with all of its various implications of an overreach of power, should be front-page news everywhere, but unfortunately, not many noticed. And that’s a concern to constitutional attorney KrisAnne Hall who released a video to make the rallying call.
- G20 trade ministers discuss protectionism, global recovery in Shanghai
Chinese Commerce Minister Gao Hucheng has welcomed the adoption of the G20 trade growth strategy on Sunday. Trade Ministers from the group of 20 nations wrapped up a two-day meeting in Shanghai on Sunday. “This meeting was held in a positive atmosphere, expected results were achieved, and it was a complete success. The meeting became a good training ground at the trade and economic front for the G20 summit which will be held in September this year,” Gao told reporters.
- Alan “Bubbles” Greenspan Returns to Gold. After a misbegotten credit bubble and $60 trillion more of debt.
Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. […] The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit — Alan Greenspan, 1966. That old rascal! Before joining the feds, former Fed chief Alan “Bubbles” Greenspan was a strong proponent of gold and the gold standard. He wrote clearly and forcefully about how it was necessary to restrain the Deep State and protect individual freedom. Then he went to Washington and faced a fork in the tongue. In one direction, lay honesty and integrity. In the other, lay power and glory.
- DANGER: The World Is Now On The Verge Of The Largest Destruction Of Wealth In History
With the price of gold and silver surging once again, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News that we are now on the verge of the largest destruction of wealth the world has ever seen. Egon von Greyerz: “Investors worldwide have never faced risk of the magnitude that the world is now exposed to. But sadly, very few are aware of this unprecedented risk. For the ones who understand risk and take the right decisions, it will “lead to fortune.” Only very few will choose that route. Instead, most investors will continue to live in the hope that current trends will go on forever, but sadly these people will end up “in shallows and in miseries.”…
- May trade deficit jumps 10% as U.S. consumers snap up more imports
Stronger demand for imports such as cell phones, sneakers and home furnishings boost the U.S. trade deficit by 10% in May, but the rebound in consumer demand suggests the economy regained momentum after a slow start to the year. The nation’s trade gap climbed $41.1 billion — a three-month high — from a revised $37.4 billion in April, the government said Wednesday. Economists polled by MarketWatch had expected the trade gap of $40.2 billion.
- War On The Streets Of America: Protesters Attack Police Officers In Major Cities All Over The Nation
This is what a nation looks like when it starts melting down from within. A series of very disturbing incidents of police brutality against young black males has caused a firestorm to erupt all across the country. You would have thought that the massacre of police in Dallas would have caused everyone to step back and reflect on what is really causing this cycle of violence, but instead the nationwide protests have gotten even bigger and more intense. Over the weekend, protesters attacked police with rocks, bricks, bottles, fireworks, chunks of concrete, Molotov cocktails and rebar from a construction site. In return, police fired pepper spray, smoke bombs and tear gas at protesters. As I write this, more than 200 protesters have been arrested over the weekend so far, and authorities are bracing for what the coming night will bring.
- Debt Is Dragging Down American Consumers
In May, we reported on the rising level of credit card debt in the US after the Wall Street Journal reported that credit card balances are on track to hit $1 trillion this year. Now we have evidence it might be even bleaker. A study released in June by CardHub reveals US consumers did worse than expected in the first quarter of 2016. And the study confirms that at this pace, by year-end, Americans will have accumulated more than $1 trillion in credit card debt. According to the study, Americans paid off $26.8 billion in credit card charges through the first quarter. That represents just 38% of the $71 billion in debt added during 2015. It was the smallest Q1 debt reduction since 2008, falling almost 25% below the post-recession average.
- The Dallas Massacre: This Is The Kind Of Civil Unrest That I Have Been Warning Is Coming To America
Today is a day to mourn and pray for America. In Dallas, Texas last night, a hate-filled gunman ruthlessly started gunning down police officers. A total of 12 officers were shot, and five of them are now dead. If we do not learn to love one another, there is no hope for us as a nation. Unfortunately, the love of most people has grown cold, and today messages of hate and division from people on all sides of the debate are being posted all over social media. The massacre in Dallas represented the deadliest day for law enforcement officers in the United States since 9/11, and this is the kind of civil unrest that I have been repeatedly warning is coming to America. I have warned about this in my books, on radio and on television. But of course I am best known for my articles, and the following are just a handful where I warned about what we would soon see…
- The EU is breaking up politically and financially
When David Cameron decided to let the British people vote on Brexit, he did not realise that he would open a real can of worms. Before the referendum I declared that Brexit would not be the reason for a collapse of the world economy but that it could be the catalyst for such a collapse. We have only seen a few days’ reaction with heavy intervention from central banks around the world but judging by the massive volatility we have seen so far, there is now a very high likelihood that a major secular decline in the world economy will now start to unravel. The next few weeks and months are likely to be a lot worse than the 2007-9 crisis.
- Separate Laws for Political Nobility & Economic Elite-Gerald Celente
Trends researcher Gerald Celente says Hillary Clinton not being charged by the FBI for having a private unprotected email server is just a small part of an ongoing major trend. Celente explains, “It’s bigger than Clinton. It’s a trend, and anybody can see it if they open their minds and add up the facts. What we have now is a neo-feudal society. It’s all connected. It’s, as we call it, ‘global-nomic.’ Since Obama became President, and these are the facts, 95% of the wealth since 2009 has gone to the 1%. Now, let’s take a trip around the world. 62 people have more dough than half of the world’s population combined. In the United States, 400 people are worth $2.5 trillion. What I am saying is the word ‘justice’ is being misspelled. It’s J U S T U S—Just Us. . . . You have separate laws for the political nobility and the economic elite.”
- Americans And Canadians Face Silver Shortages As The Investment Deficit Surges
Americans and Canadians will likely face silver shortages in the future as investment demand continues to surge higher. This will come at time as the silver price skyrockets, thus making it even harder for investors to acquire physical metal. The U.S. and Royal Canadian Mints produce most of the Official Silver coins in the world. In 2015, the combined total of Silver Eagles and Maples sales equaled 81.3 million ounces (Moz).
- The Bears Are Back – Oil Slides On Negative Sentiment
After oil prices rallied more than 80 percent between February and June, WTI and Brent have fallen back more recently, dropping from above $50 to just $45 per barrel. Oil traders are searching for more clarity on what to expect next, but the cacophony of data pointing in different directions is leading to confusion for analysts and speculators. On the bullish side for oil prices is Citigroup, which published a research note on Monday saying that it is “especially bullish” on commodities in 2017. Citi says that the oil markets continue to balance, and the concerns over global economic growth are not as important as the demand trajectory. Moreover, the crash in oil prices has forced the industry to make cuts that will only sow the seeds of the next boom. “The oil market is treading water for now, but the oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade,” Citi analysts, led by Ed Morse, said.
- Jubilee Jolt: Pre-Planned and Leaked ‘Summer of Chaos’ Begins in Dallas
It was only two days ago that we focused on the Black Lives Matter (BLM) leaked documents showing they were planning, in concert with the Obama Regime, a “Summer of Chaos.” Two days later, on 7/7 (the magic number 7!), the opening shots were fired in Dallas, Texas. Just as we predicted. During an evening rally of Black Lives Matter to protest two deadly police shootings, a sniper or snipers took aim from rooftops and killed or wounded numerous government law enforcers. Following all the trappings of past false flag attacks, the supposed sniper was killed… blown up in fact… before we could gain any information from him. But, as we said earlier, two top Black Lives Matter activists had their email and Twitter accounts hacked last month and it showed their plans, in concert with US Attorney General, Loretta Lynch, to cause massive riots and unrest in what they termed the “Summer of Chaos.”
- Global Investment to Plunge, Trade to Languish, on “Depressed” Demand: G-20 Trade Ministers
Facing “depressed market demand” and plunging global cross-border investment, the trade ministers of the G-20 countries along with folks from the IMF, the Organization for Economic Cooperation and Development, and the World Trade Organization, among others, met in Shanghai this weekend to hash out a plan. As at all these meetings, they reached an agreement, of sorts. The G-20 countries account for about 85% of global trade and 70% of global investment, so they matter.
- The Anatomy of a False Flag Event
This are article examines three critical aspects of a false flag event and then applies what is known, and typical of a false flag event to the murder of five Dallas police officers earlier in the week. By the way, the above picture strongly suggests that there is a lot more to the official narrative than the public is being told. The three areas of concern are: Rehearsal of certain aspects of the event by either First Responser, LEO, or both. If the false flag event consists of an assassination(s), the narrative includes acting alone, the “discovery” of a diary or a mainfesto which states the murderous intentions of the “patsy”, and the labeling of the so-called perpetrator as being insane so the act can be referred to as a random act of insane violence so the subject of a conspiracy never enters the discussion by the media and the authorities investigating the crime. Disguise the purpose of the event.
- Fear, Loathing & Record Money-Making in Government Bonds
US Treasuries set new records on Friday: The 10-year note rose to a new high, with the yield dropping to a new low of 1.366%. The 30-year Treasury bond also hit a new high, with the yield dropping to 2.11%, a record low. If 2.11% sounds like a miserably low return for tying up your money for three decades of hell and high water, it’s practically bond nirvana for whatever else is out there.
- Andy Hoffman: The End Game has Arrived – Protect Yourself, and Do It Now!
Andy is short for words. This is the latest produced through SilverFarm, the best source for podcast and on-the-go info you seek. Give Andy a good listen as he provides us with his take on unfolding economic collapse. As most of you know our economy is in serious trouble. We should all take time each day to focus on our personal economy and think of improvements that could be made. Small changes in ones personal economic habits make a huge difference at the end of the day, week, month and year.
- Bernanke’s Black Helicopters
Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary ruin. At least since 2002 he has been talking about “helicopter money” as if a notion which is pure economic quackery actually had some legitimate basis. But strip away the pseudo scientific jargon, and it amounts to monetization of the public debt—–the very oldest form of something for nothing economics. Back then, of course, Ben’s jabbering about helicopter money was taken to be some sort of theoretical metaphor about the ultimate powers of central bankers, and especially their ability to forestall the boogey-man of “deflation”.
- Is The BIS Setting Up The World For Another Meltdown?
On the heels of another wild trading week, is the Bank for International Settlements (BIS) setting up the world for another meltdown? Stephen Leeb: “In 2013, the Bank of International Settlements (BIS), one of the most powerful institutions you may never have heard of – blew it. It snubbed gold. I’ll explain how in a moment – contributing to gold sinking from $1,800 an ounce in October 2012 to below $1,200 by the end of June 2013, a massive 35 percent plunge in a mere eight months. The downtrend continued until the end of last year when gold briefly traded below $1,050…
- The ECB’s Bank Stress Test Shows Fatal Errors
The United States have learned from their bad experiences during the Global Financial Crisis wherein almost its entire financial system was going down in flames. Stress tests to find out how banks would be able to deal with economic adverse scenarios became mandatory, and the European Union followed suit with its stress tests in 2011, followed by a series of check-ups later on. Almost a decade has passed since the GFC, and half a decade since the European stress tests, but the volatility and unrest in the financial world has never been this high. You would think that five years of ECB-supported lending would have helped these banks (as even though the net interest spreads did decrease, the access to the ultra-cheap lending facilities of the ECB allowed the banks to continue to generate positive results), nothing has changed, and more than 5 years after the term ‘PIIGS’ became one of the most well-known words to describe the economic mess in the weaker European, one of the I’s is now once again in serious economic trouble.
- Deutsche Bank’s Chief Economist Calls For €150 Billion Bailout Of European Banks
The cards have been tipped, and it appears Italy’s Prime Minister may have been right. In the aftermath of Brexit, much of the investing public’s attention has turned to Italian banks which are in desperate need of a bailout as a result of €360 billion in bad loans growing worse by the day (and not a bail-in, as European regulations mandate, as that would lead to an immediate bank run) to avoid a freeze and/or collapse of Italy’s banking sector. This has pushed stock prices – and default risk – on Italian banks to record levels. So far Italy’s bailout requests have mostly fallen on deaf ears, as Germany’s political leaders have resisted Renzi’s recurring pleas for a taxpayer funded rescue. However, as we have alleged, and as the Italian Prime Minister admitted last week, the core risk for Europe is not just the Italian banking sector but the biggest bank of all in Europe: Deutsche Bank.
- Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank
Now the REAL question: what happens to Deutsche Bank’s derivative book, which has a notional value of €52 trillion, if the bank is insolvent? It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins notes that Frankfurt-based Deutsche Bank shares are now down -48% on the year to $12.60, which is a record-setting low. Even more stunning is the long-term view of the German institution’s downward spiral. With a modest $15.8 billion in market capitalization, shares of the 147-year-old company now trade for a paltry 8% of its peak price in May 2007.
- DEAD PULSE: The Morgue is the Next Stop For the Financial System – Jim Willie
The Gold price will find its true value and price over $10,000 per ounce. The Silver price will find its true value and price over $300 per ounce. In reaching these levels, the ratio will return to the 30-1 range. The ruling bankers realize no remedy is possible. They are just trying to steal as many assets and accumulate as much gold as possible before the main bust event.
- They Know It’s Coming: Insurance Company Risk Experts Have Started Hoarding Physical Gold and Cash Ahead Of Crisis
How do you know when the world’s economic, financial and monetary systems are in trouble? Answer: When re-insurance companies, whose sole purpose is to insure other insurance companies, start to panic into gold and begin hoarding cash it’s probably a reliable signal that things aren’t going as well as our central bankers’ best laid plans imply. That’s exactly what’s happening right now: A real paradigm shift is taking place in the markets… Even one of the world’s second largest re-insurers is now buying physical gold… They’re even adding physical cash… This is the insurance industry’s insurance company… They are the risk experts and they now are buying physical gold bullion and storing physical cash… The importance of this move is possibly the most significant flow of capital that you will see in your lifetime…
- The Great Market Tide Has Now Shifted
In the conventional investment perspective, risk-on assets (i.e. investments with higher risks and higher potential returns) such as stocks are on a see-saw with risk-off assets (investments with lower returns and lower risk, such as Treasury bonds). When risk appetites are high, institutional managers and speculators move money into stocks and high-yield junk bonds, and move money out of safe-haven assets such as gold and U.S. Treasuries. But recently, markets are no longer following this convention. Safe haven assets such as precious metals and Treasuries are soaring at the same time that stock markets bounced strongly off the post-Brexit lows. Risk-on assets (stocks) rising at the same time as safe-haven assets is akin to dogs marrying cats and living happily ever after.
- IMF says EU on brink of collapse and ‘untenable’ Euro may have to be SCRAPPED
THE FUTURE of euro currency and the entire EU project looks unsustainable without major change, according to a damning review by the International Monetary Fund and renowned economists. IMF chiefs warned the UK’s decision to leave the EU would seriously hamper growth prospects in the region. Before the Brexit vote, the IMF forecast a 1.7 per cent expansion for the eurozone. However, post Brexit the organisation revised that down to 1.6 per cent this year and 1.4 per cent next year.
- Markets are showing one of the same signs they did in 2007
We may still be in a bull market, but it really doesn’t feel like one. And at least one indicator suggests we could be heading for a slide. Since the beginning of this year, the S&P 500 (.SPX) is being driven by sectors traditionally considered to be safe investments, such as utilities (.5SP5510), telecom (.5SP5010) and consumer staples (.5SP30). The stock index is hovering less than a percent off its own 52-week high as of Friday morning. Generally, when the broader market is lifted by these “defensive” sectors, it means investors are looking for safe havens where they can weather a future storm. That could be a precursor to an economic slowdown. In fact, one of the last times we saw defensive sectors outperform riskier ones was in 2007, just before the onset of the financial crisis.
- Financial Analyst Warns: “Millions Will Die” When Financial System Collapses
Trillions of dollars of currency are being moved or rushing towards the debt market that is squeezing bond yields to historic lows. We are making history in the United States for the second week in a row, and I am talking about the bond market. Both gold and silver, since the beginning of this year, have taken off like rockets, and they are not going to stop. This environment is on the edge…
- U.S. Economy Improving: How When 70% of Americans Don’t Have $1,000?
Truth be told, there isn’t any economic growth in the U.S. economy and that’s because the average American is struggling to the extreme. In fact, according to a poll done by the Associated Press-NORC Center for Public Affairs, about 70% of Americans would have trouble coming up with $1,000 to cover an emergency! In the same survey, 46% of Americans said their wages have remained stagnant in the past five years, while 16% said their salaries have actually seen cuts.
- Rickards: $10,000 – $50,000 Gold!
“People around the world are losing confidence in central bank money,” Jim Rickards said in a recent interview. “When you lose confidence in central bank money, you look for other forms of money and gold is the best.” Despite all of our talk about cryptocurrencies over the past couple of weeks, we must point out, one more time, that investing in the cryptosphere — even Bitcoin — is a gamble. Yes, they are exciting. And, yes, some of them will be immensely disruptive. But there are a number of things that, in our shaky global environment, works against them. If the lights go out, for example, your stash of Bitcoin, Siacoin and Synereo aren’t going to get you very far.
- How Gold Bears End——Eerie 1974-1976 Pattern Repetition Revisited
Gold Continues to Mimic the 1970s. Ask and ye shall receive… we promised we would update the comparison chart we last showed in late November in an article that kind of insinuated that it might be a good time to buy gold and gold stocks (see: “Gold and Gold Stocks – It Gets Even More Interesting” for the details). We are hereby delivering on that promise. It is actually interesting to revisit both past articles speculating about a potential gold bottom that turned out to be correct (those would be the many articles we penned on the topic from August 2015 onward) as well as those that turned out to be incorrect (which would e.g. include a number of articles written in late 2014. Although they managed to catch a playable rally in timely fashion, it ultimately turned out to be a bear market rally).
- No Charges for Clinton Proves Two Tier Legal System, Global Crash is Certain, Buy Gold and Silver
You’ve heard by now, Democratic presumptive nominee Hillary Clinton will not be charged over her unprotected email servers she used while at the State Department. Even though FBI Director James Comey pointed out multiple lies Ms. Clinton told, he decided not to recommend charges and said he “could not prove intent.” He also explained his decision to Congress this week but would not comment when asked about other investigations into the Clinton Foundation. Comey revealed that he did not personally interview Ms. Clinton last Saturday or even attend the deposition. He also revealed that Clinton did not testify under oath. Democrats in the hearing said Republicans were grilling Comey just to score points against their presidential candidate. Now, leaders in the House of Representatives are preparing a recommendation to the FBI to look into allegations Clinton lied to Congress in the Benghazi hearings.
- Gerald Celente – The Last Great Opportunity To Buy Gold & Silver
Today top trends forecaster Gerald Celente spoke with King World News about the action in gold and silver and what KWN readers around the world should expect next. Gerald Celente: “$10.7 trillion of negative yields — that is what is driving the gold market, along with the turmoil in the currency markets. The British pound just plunged over 20 percent in a matter of days. So these are the catalysts for the bid in the gold market…
- This is what gold’s top tipster is saying about prices
Gold’s top forecaster, who in February abandoned her bearish outlook to correctly call bullion’s surge, sees more gains in store before prices taper off by year-end. The metal will climb to $1,425 an ounce by the end of September, 4.4% higher than now, before dipping in the following six months amid prospects for higher U.S. interest rates, said Georgette Boele, a currency and commodity analyst at ABN Amro Bank NV. The 43-year old was rated by Bloomberg as the most accurate forecaster. Boele has been right on the way up and also the way down. At the start of 2013, she was among the most bearish analysts before gold capped its first annual drop in 13 years. She called for lower prices until just a few months after bullion touched a five-year low in December. With Brexit-related concerns over the global economy’s strength and U.S. interest rates not expected to rise anytime soon, gold’s now near a two-year high.
- Gold & Silver To Be Last Currencies Standing – Peter Boockvar
The pervasive bullish sentiment towards gold continues as prices maintain solid gains and has one Wall Streeter saying the secular bull market is back in full force. “After rallying for 12 straight years and peaking in September 2011 at around $1,900 per troy ounce, gold fell into a very lengthy bear market that I believe ended in December 2015 at $1,050,” said Peter Boockvar, the chief market analyst for the Lindsey Group, in a CNBC post Thursday.
- Privately Minted Silver Coins Were Legitimate Money in the 1800s
In the early 1830s, an eastern Kentucky man named Josiah Sprinkle started minting his own coins and circulating them around the area. Eventually, government officials got wind of Sprinkle’s operation and arrested him. But he was ultimately found not-guilty in court. How did a man minting his own coins escape the long arm of the law? Because his coins were pure silver. They were equal in value to the silver dollars minted by the US government. In fact, they were worth slightly more.
- U.S. GMO food labeling bill passes Senate
The U.S. Senate on Thursday approved legislation that would for the first time require food to carry labels listing genetically-modified ingredients, which labeling supporters say could create loopholes for some U.S. crops. The Senate voted 63-30 for the bill that would display GMO contents with words, pictures or a bar code that can be scanned with smartphones. The U.S. Agriculture Department (USDA) would decide which ingredients would be considered genetically modified. The measure now goes to the House of Representatives, where it is expected to pass.
- Signs the Government is Planning to Confiscate Your Retirement Funds
We’ve warned that bankrupt governments will be eyeing the multi-trillions of dollars in “un-taxed” retirement funds when they get desperate enough. It is an incredibly common occurrence. It has happened in numerous countries in just recent memory. Poland, Hungary and Bolivia are a few in the last years where retirement funds have been seized. Total funds currently held in private IRA and 401K accounts in the US are estimated to be in the neighborhood of $10 trillion. That number looks awfully enticing to the US government which is currently indebted to the tune of $19 trillion and holding liabilities of over $100 trillion. As we dance on the brink of a massive collapse, the government’s already empty coffers will be even further decimated as the economy contracts massively and tax receipts plummet.
- Fear factor behind property fund withdrawals, say experts
The fear factor is causing investors to withdraw money from commercial property funds, according to one of the City’s senior fund managers. Philip Nell, a fund director at Hermes, said there had been “a massive over-reaction to what’s been going on over the last two weeks”. Mr Nell used to run the Aviva property fund that closed its doors along with five other funds this week. Henderson, Canada Life and Threadneedle became the latest on Wednesday.
- IMF Sees Pakistan’s Currency Overvalued as Loan Program Near End
Pakistan’s currency is overvalued by as much as 20 percent and is contributing to the country’s declining exports, along with low commodity prices, power outages and security concerns, according to the International Monetary Fund. A December study from the Washington-based lender found the exchange rate was “broadly” overvalued by 5 percent to 20 percent, Harald Finger, the IMF’s mission chief for Pakistan, said in a Tuesday phone interview from Washington. “More or less that’s still our assessment.” The rupee and Pakistan’s stocks have been among Asia’s best performers since 2013, when Prime Minister Nawaz Sharif — who’s in London recovering from open-heart surgery — took a $6.6 billion loan from the IMF to avert a balance-of-payments crisis. Finance Minister Ishaq Dar reiterated last month that Pakistan doesn’t need another IMF program with the current one due to finish at the end of September.
- Populist Politicians Take On Italy’s Massive Debt Pile
The Rome Olympics of 1960 marked the rebound of the Italian capital after years of war and reconstruction, an affirmation of the country’s renaissance and the city’s emergence as a symbol of dolce vita insouciance. Rome is still paying the bill, and the new mayor, Virginia Raggi, is sick of it. The city has roughly €13.6 billion ($15.2 billion) in debt and more than 12,000 creditors—though the pile is so complex no one really knows how much is owed to whom. Rome faces outstanding bills for operating its 61-year-old metro system, hauling trash, and running a network of unprofitable pharmacies that compete with private shops. The courts are grappling with hundreds of lawsuits over unpaid debts going back 50 years for land expropriated to build hospitals, streets, and other city projects—including some debts connected to the 1960 games, former Mayor Ignazio Marino has said. The average interest rate: 5 percent, at a time when the Italian government is issuing 10-year bonds at 1.5 percent annually. “We can’t keep paying such high interest just because nobody bothered to renegotiate the debt,” Raggi, who was elected on June 19, told the RAI television network.
- Gross Calls Sovereign Bonds Too Risky With U.S. Yields Near Lows
Bill Gross said sovereign bond yields at record lows aren’t worth the risk. “The sovereign bonds are not up my alley,” Gross, who built the world’s biggest bond fund at Pacific Investment Management Co. and is now at Denver-based Janus Capital Group Inc., said on Bloomberg Television Wednesday. “It’s too risky.” Low yields mean bonds are especially vulnerable because a small increase can bring a large decline in price, he said. Yields in the U.S., the U.K. and Australia pushed to all-time lows Wednesday, while those in Germany and Japan dropped to unprecedented levels below zero. The average yield on the bonds in Bank of America Corp.’s World Sovereign Bond Index this week dropped below 1 percent for the first time, based on data going back to 2006, while almost $10 trillion of securities in the Bloomberg Global Developed Sovereign Bond Index yield less than zero.
- What a difference in two weeks! Project Fear mastermind Osborne joins US banking giants to insist City will continue to THRIVE following historic Brexit vote
George Osborne and the Wall Street banking giants which helped bankroll the Remain campaign yesterday issued a resounding vote of confidence in the City of London. In a joint statement with the Chancellor, investment banks including Goldman Sachs, Morgan Stanley and JP Morgan pledged to ensure the City of London remains the world’s dominant financial centre when it leaves the EU. The firms said that while Brexit ‘clearly presents economic challenges’, they would strive to ensure Britain ‘remains one of the most attractive places in the world to do business’.
- Britain readies for showdown with Putin as it stations troops throughout Eastern Europe
HUNDREDS of British troops are set to be scrambled to countries bordering Russia as a show of strength to Vladimir Putin. David Cameron will announce the deployment of a 500-strong battalion to Estonia with a further company of 150 troops to be stationed in Poland “on an enduring basis”. The move comes amid continuing concerns from the Western alliance regarding the intentions of Vladimir Putin following Russia’s annexation of Crimea from Ukraine in 2014.
- Property funds worth £18bn suspend trading in biggest seize-up since financial crisis
Property funds worth £18 billion have stopped trading after Brexit sent a chill through the commercial property market. The number of funds that have suspended trading has risen to seven since Standard Life stopped investors from taking out funds worth £2.9 billion on Monday, ten days after the Brexit vote. The fear was that too many property investors would try to take their money out at once, forcing fund managers to sell properties at a loss. More than half the funds in commercial property funds are on lockdown. The cooling of the construction industry has fuelled concerns that property prices and rental values could start to fall, leading investors to believe their that their money might be safer elsewhere.
- Business minister Sajid Javid opens preliminary trade talks with India
The business minister is to launch trade talks with India, marking the start of a world tour aimed at drawing up a blueprint for Britain’s role in the global economy outside the European Union. Sajid Javid will hold preliminary talks with Indian government ministers in Delhi on Friday, marking the start of what is expected to be years of negotiations to establish new trade deals with individual countries. These bilateral deals will replace agreements the EU has with more than 50 countries.
- Must Listen: It’s Over: Bill Holter
On this edition of X22Report Spotlight, posted on Saturday, July 9th, 2016, returning guest Bill Holter of Jim Sinclair’s Mineset discussed how the insolvency of the major European banks such as Deutsche Bank currently make them the leading candidates for a domino effect of collapse that will leave no bank in the world untouched. Bill briefly touched on Ben Bernanke’s meeting next week in Japan with Kuroda and Abe, and how the likely topic of their discussion is helicopter money. He also pointed out that central bankers need a fall guy for their failed policies, and in this case, they will probably blame the global collapse on Brexit, with the war card also being played as a sufficient distraction.
- Secret memos expose link between oil firms and invasion of Iraq
Plans to exploit Iraq’s oil reserves were discussed by government ministers and the world’s largest oil companies the year before Britain took a leading role in invading Iraq, government documents show. The papers, revealed here for the first time, raise new questions over Britain’s involvement in the war, which had divided Tony Blair’s cabinet and was voted through only after his claims that Saddam Hussein had weapons of mass destruction. The minutes of a series of meetings between ministers and senior oil executives are at odds with the public denials of self-interest from oil companies and Western governments at the time.
- Domestic Trade Is Disintegrating: Heavy Truck Orders Plunge To Lowest Since 2010
Who says you need trade and logistics to maintain the S&P within 2% of its all time high? Not the Fed, that’s who, and it’s a wonderful thing because the state of US heavy trucking – the backbone of domestic trade infrastructure and logistical supply chains – suggests the US economy is in a far more dire state than the Fed would ever admit. According to the latest data from ACT Research released today, June orders for new heavy-duty, or Class 8, trucks plunged to just 13,100, the lowest number since 2010 according to the WSJ (and since 2012 according to Bloomberg, but no need to split hairs here) indicating that trucking companies – the forward-looking bedrock of any viable recovery along with rails – expect little relief from a weak freight market and sluggish economic growth. This month’s order activity was the lowest monthly total since July 2012 and the worst June since 2009.
- Our Future Is (Literally) Crumbling Before Our Eyes
The sorts of predicaments the world faces — ranging from over $200 trillion in debt, to our unsustainable addiction to fossil fuels, to our over-stressed ecosystems — all require that we get deadly serious about confronting them ASAP, and make difficult decisions and trade-offs. However, our global leaders always seem to opt to kick the can down the road if at all possible. Short-term thinking and near-term priorities dependably get precedence over doing the right thing for the future. Tomorrow’s generations are thrown under the bus by selfishly motivated actors today. As I’ve put forth over and over again: we’re simply not going to make it unless we get much more serious about our efforts than we have been to date. Yes, it’s a wonderful thing that Elon Musk is building sexy electric cars; but even a single minute spent with a pencil, paper and the aggregate energy statistics on transportation will reveal that there’s an enormous gap between where we currently are and where we need to be.
- A Furious Italian Prime Minister Slams Deutsche Bank As Europe’s Most Insolvent Bank
Several years ago, we were the first to point out the true “elephant in the room”, namely Deutsche Bank’s $75 trillion in derivatives which as we said at the time was about 20 times bigger than Germany’s GDP, and 5 times bigger than the entire economic output of the Eurozone.” This was largely ignored by the “experts” because why bring attention to something which is fundamentally a devastating break in the narrative that “Europe is fine” and the financial crisis is now contained. Fast forward to today when Europe is once again not fine, only this time one can’t blame Europe’s problems on Greece (instead the same “experts” are trying to blame everything in Brexit), when in a surprising admission of reality, none other than Italy’s prime minister Matteo Renzi, “went there” and slammed Deutsche Bank as the true “derivative problem” facing Europe.
- Gerald Celente – A Devastating Crisis Is About To Be Unleashed On The World
Today top trends forecaster Gerald Celente warned that a devastating crisis is about to be unleashed on the world. Gerald Celente: From geopolitics to socioeconomics, from environmental to technology, be it the body politic or personal health, as trend forecasters it is essential to have a clear understanding of where we are and the knowledge of how we got here to see where we are going…
- So What’s Going on with Inflation in Argentina?
When Argentine President Mauricio Macri took power, his economic team began to dismantle his predecessor’s heavy-handed policies — a process that had painful recessionary consequences for the Argentine population. Macri and his team repeatedly promised that by the second half of 2016, the pain would be worth it, the economy would recover and we would see some results. In a press conference yesterday, Macri announced that his policies have successfully put the country’s economy back on track.
- Investor Fears Spike as Italy (and the EU) Inch Closer to Doomsday Scenario
Just how low can Italian bank shares go? That’s the question plaguing the minds of European investors, policy makers, bankers and central bankers. Today the shares of the country’s third largest publicly traded bank, Monte Dei Paschi, plunged 14% to €0.33, their lowest point ever. Two years ago, they ran between €5 and €9. The reason for the latest plunge was news that the ECB had sent the bank a letter urging it to draw up a plan for tackling its bad-loan burden. The lender is being asked to reduce its load of curdled debt by €10 billion to €14.6 billion by 2018. That’s a big ask even in the best of times, and these are certainly not the best of times for Monte Dei Paschi. According to Bloomberg, its loan loss provisions would represent over 95% of its operating profits.
- The Big Unravel: US Commercial Bankruptcies Skyrocket
This year through June, there have been 91 corporate defaults globally, the highest first-half total since 2009, according to Standard and Poor’s. Of them, 60 occurred in the US. Some of them are going to end up in bankruptcy. Others are restructuring their debts outside of bankruptcy court by holding the bankruptcy gun to creditors’ heads. In the process, stockholders will often get wiped out. These are credit fiascos at larger corporations – those that pay Standard and Poor’s to rate their credit so that they can sell bonds in the credit markets. But in the vast universe of 19 million American businesses, there are only about 3,025 companies, or 0.02% of the total, with annual revenues over $1 billion; they’re big enough to pay Standard & Poor’s for a credit rating.
- Venezuela Refuses to Default. Few People Seem to Understand Why
It’s been almost two years now since the renowned Harvard economist Ricardo Hausmann caused a stir in his native Venezuela by posing an uncomfortable question. Why does a country that’s so starved for cash keep honoring its foreign debts? In other words, how does it justify shelling out precious hard currency to wealthy bondholders in New York when it can’t pay for basic food and medicine imports desperately needed by millions of impoverished citizens? “I find the moral choice odd,” Hausmann concluded.
- There’s a $3 Trillion Pool of Money Set to Extend Treasury Surge
Bank of America Corp. sees the $3 trillion U.S. corporate pension industry throwing its interest-rate assumptions out the window. And that means the retirement plans will probably throw more money into Treasuries. Even with yields at record lows, Shyam Rajan, head of U.S. rates strategy at the primary dealer, says pensions are likely to embrace the lower-for-longer mantra and bolster the $13.4 trillion Treasuries market. With only 6 percent of assets in Treasuries, half the peak seen in the 1980s, the retirement funds are primed to join buyers looking for a selloff to pounce. That demand waiting in the wings may depress yields further. Bank of America forecasts yields on 10-year notes will fall to 1.25 percent by the end of September, from about 1.39 percent as of 12:10 p.m. in New York on Wednesday.
- Obama’s Medicare ‘reform’ blocking seniors from accessing important services including knee replacements; hospitals rewarded for spending less per patient
Remember when the liberal left accused us all of being paranoid racists for reading senior citizen death panels between the lines of Obamacare? It turns out that these hysterical Democrats were wrong once again, as new Medicare reforms issued by the Obama administration are reportedly stripping aging Americans of their coverage and leaving them to fend for themselves. According to the New York Post, Obama is completely “dismantling” Medicare, “dooming seniors to needless pain and disability and shortening their lives.” It might sound a bit hyperbolic, but it’s true; the new rules apparently scrap Medicare coverage for things like hip and knee replacements, cataract operations and heart surgeries – you know, the things seniors need to actually keep on living.
- Central Banker Who Slayed ‘Zombie Banks’ Meets Too Big to Fail
In two years as governor of Ukraine’s central bank, Valeriya Gontareva has shut down nearly half the country’s lenders, a financial purge with few modern precedents. But at a private dinner this spring with George Soros, she worried that it won’t be enough to banish permanently from Ukraine what she calls “oligarch banking.” “What concerns us both is the dominant position of one particular bank,” the billionaire investor recounted in a recent interview. It “has more than half the banking business and is in the hands of an oligarch who is very powerful.”
- U.K. Property Fund Suspensions Send a Warning to the Junk Bond World
Investors in U.K. commercial real estate just touched a nerve. In pulling their money out of property funds at such a rapid pace four asset managers froze withdrawals this week, the investors showed how the cost of Brexit is spreading. They also tapped into one of the biggest fears of bond market observers: a mismatch between the liquidity of investment funds and their assets. The real estate funds are designed to allow investors to withdraw their money on a daily basis, while the properties backing them could take months to sell. That’s similar to many mutual and exchange-traded funds that buy junk bonds — securities that can take weeks to sell — and offer daily redemptions. Yet while the property funds have grabbed the headlines and spooked markets, the bigger threat may be posed by bond funds.
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From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. Please LIKE the Lindsey Williams Online Facebook Page to see stories posted daily regarding the current state of the economy around the world.
Latest News From July 1, 2016 to July 7, 2016:
- Collapse of Empires is Upon Us-Gregory Mannarino
Trader and analyst Gregory Mannarino says what is going on today with the FBI refusing to indict Hillary Clinton is nothing new when considering the “fall of empires.” Mannarino explains, “This is a cycle, and we are seeing several pieces fall into place regarding the political system and the financial system that we have seen over and over again. There is a lifespan of an empire . . . at the top of every empire . . . there is an issue of the financial system, and there is an issue with the political system that becomes absolutely corrupt. This is why this announcement (FBI not indicting Clinton) came. Again, this is political corruption. It’s not just here in the United States, but globally it is flashing red across the sky. . . . I think they are well aware that the whole system is going down. The collapse of empires is upon us. . . . We are in an environment that globally we have never seen before. With what we are seeing in the United States with the corruption in politics, we’ve seen that before. Every great empire, right at the top, the two key elements that appear are financial system on the edge and political corruption trying to patch it all together. That is something we see over and over again throughout history.”
- Market turmoil to persist: Follow the money, follow gold
From geopolitics to socioeconomics, from environmental to technology, be it the body politic or personal health, as trend forecasters it is essential to have a clear understanding of where we are and the knowledge of how we got here to see where we are going. Global equity markets are in turmoil. However, the business media’s view of market mayhem is a snapshot in time dating to the June 23 “Brexit” when the United Kingdom voted to exit the European Union. Indeed, while Brexit triggered the current turmoil, our trends-eye view identifies the current market volatility in a Globalnomic® context far bigger than Brexit. For example, just one year ago, Chinese equity markets were in crash mode. The Shanghai Index, up 150 percent in a year, plummeted some 40 percent by mid-July 2015. In just one day, it had its second-biggest fall in its history. Following a summer that plunged Chinese markets into bear territory, global equity markets had their worst quarterly showing since 2011. It got worse.
- These six former Goldman Sachs bankers want to destroy your savings
Rule #1 in central banking: Never go full Draghi. Mario Draghi, of course, is the President of the European Central Bank (ECB) who pledged to do “whatever it takes” to save the euro. Or was it save the world? We forget. Anyhow, Mark Carney, the head of the Bank of England, just went full Draghi, pledging to do, effectively, whatever it takes… even if that means destroy the British pound or economy. Future historians will no doubt look back at this period in amazement, wondering, given the stunning and murderous failures of Nazi Germany and Soviet Russia, how central planning ever managed to find a last hold-out amongst the world’s central banks. Yes, Britain may have finally escaped from the EU lunatic asylum.
- State pension scrapped for under 30s?
One in five 18 to 30 year olds don’t believe there will be a state pension for them when they eventually retire. When asked about the new flat rate state pension , more than half admitted they hadn’t a clue how much it paid out, according to research from workplace pension provider NOW:Pensions. Once they knew the amount, currently £155.65 a week, two in five said that wasn’t enough to retire on. This come on the back of previous research from NOW:Pensions with 100 cross party MPs where almost one in six didn’t expect the state pension to be around 30 years time, or if there still is one it will be at a much lower level.
- Property market turmoil has eerie echoes of start of financial crisis
The name “Bear Stearns” is enough to send a shudder down the spine of any investor who survived the financial crisis. The collapse of Lehman Brothers in September 2008 is generally regarded as the moment when the entire financial system almost came crashing down. But it is often forgotten that the glue that held it together had started to come unstuck more than a year earlier. The first sign that things were unravelling was when American investment bank Bear Stearns prevented investors taking money out of two mortgage-related hedge funds in the summer of 2007. Eventually, both were liquidated.
- Globalists Are Now Openly Demanding New World Order Centralization
I have said it many times in the past — when elitist criminals start openly admitting to their schemes it means that they are ready to pull the plug on the current system. They simply don’t care anymore who knows their plans because they think that victory is inevitable. There have been more subtle and less prominently published calls for a “new world order” in the past, to be sure. However, at no other time have I seen international financiers and their puppet political mouthpieces so brazen about calling for global centralization than in the wake of the successful Brexit referendum. It is as if the Brexit flipped a switch in the existing narrative and set loose a flood of new propaganda, all aimed at convincing the general public that central banks must combine forces and act as one institution in order to combat an economic crisis that isn’t even visible to laymen yet.
- FBI’s Hillary decision all part of jubilee plan towards greater chaos
Many people in the US were shocked that Killary Clinton was not indicted by the FBI today. Those people clearly have no idea what is going on. Since when has the government ever investigated itself (or its top figureheads and power players) and found itself guilty? You just have to look at the complete sham of the “9/11 Commission Report” to know that. Hillary has been selected (there are no real Presidential elections in the US) as the next President. Five of her close network attended Bilderberg this year where they have a record of selecting the next President. It matters not that she literally speaks in front of crowds that can be counted using your fingers while people like Bernie Sanders or Donald Trump speak in front of football stadiums. If people in the US don’t realize they are enslaved under a heinously criminal organization then the fluoride in the water, mainstream media programming and 12 years of government indoctrination camps have done their job. But, this goes far deeper than most realize.
- Here We Go Again – Stockman Warns Of August 2007 Redux
Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy and elsewhere in Europe and the sudden trading suspensions by four UK commercial property funds. If this is beginning to sound like August 2007 that’s because it is. And the denials from the casino operators are coming in just as thick and fast. Back then, the perma-bulls were out in full force peddling what can be called the “one-off” bromide. That is, evidence of a brewing storm was spun as just a few isolated mistakes that had no bearing on the broad market trends because the “goldilocks” economy was purportedly rock solid. Thus, the unexpected collapse of Countrywide Financial was blamed on the empire building excesses of the Orange Man (Angelo Mozillo) and the collapse of the Bear Stearns mortgage funds was purportedly owing to a lapse in supervision.
- Economic crisis bares hunger problem in Venezuela
Kelly Vega says she lost 30 pounds in three months as she focused on feeding her 6-year-old daughter rather than herself. “We are eating two meals a day. If we eat breakfast, there’s no lunch. If we have lunch, there’s no dinner,” she said. This socialist country is suffering from severe food shortages that are making it hard to get enough to eat, even though Venezuela has the largest oil reserves in the world. Government officials blame the shortfalls on right-wing business owners hoarding products to sow chaos, while their detractors say it’s the result of chronic economic mismanagement.
- The Thin Veneer Of Civilization That We All Take For Granted Is Evaporating All Over The Globe
Have you noticed that the world seems to be going a little bit more crazy with each passing month? Here we are halfway through 2016, and the rot and decay that are eating at the foundations of civilized society seem to be rapidly gaining momentum. Every single day, all of us take certain things for granted as we go through our normal routines. For example, as you walk down the street you probably take it for granted that someone is not going to pull out a gun and try to shoot you. As members of a civilized society, we have come to expect that our fellow citizens will behave in a certain way. Unfortunately, the thin veneer of civilization that we have all come to rely upon is steadily evaporating all over the globe, and chaos, crime and violence are all on the rise.
- Legend warns this will totally devastate the world and the window to safe yourself is closing
With the price of gold and silver surging once again, even with the July 4th holiday in the United States, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News that what is coming will totally devastate the world and the window for investors to save themselves is closing.
- Greeks See Wages and Pensions Slashed as New Round of Austerity Begins
The summer of 2016 turns out to be another summer of discontent for Greek pensioners and wage earners who see their incomes slashed, as a new round of austerity begins after the imposition of the new bailout program measures. It was exactly the same time last year (June 28) when Greeks found that the banks were closed and capital controls were imposed, continuing through today. This year, the end of June found wage earners and pensioners fuming or despairing in front of the ATM when they saw that their bank balances where lower than anticipated. And for hundreds of thousands of pensioners, the amounts were significantly less, even 48 percent lower in some cases.
- America Has Become A Lawless Nation – Hillary Clinton Magically Cleared By The FBI
It is hard to be proud to be an American today after watching FBI director James Comey magically clear Hillary Clinton of all wrongdoing. Sadly, Comey is likely to go down in history as the man that struck the final death blow to the rule of law in America. During his address to the media, Comey admitted that Clinton sent or received 110 emails in 52 email chains that contained classified material at the time they were sent. But of course there were probably many more. Comey told the press that it was “likely that there are other work-related emails that they did not produce … that are now gone because they deleted all emails they did not return to State, and the lawyers cleaned their devices.” So basically Clinton turned over to the FBI whatever she felt like turning over, and then she destroyed the rest of the evidence. As a former lawyer, this infuriates me, but it doesn’t surprise me.
- Sweden begins ball rolling to try to cut off gold acquisition by the masses as price begins to soar
One of the major reasons why the bullion banks have been able to keep the price of gold and silver down over the past four years is because only 1% of Americans and Europeans actually own the physical metals, or have not changed their investing paradigms to seek intrinsic safe havens rather than trust in paper assets. But since the beginning of the year, and with last week’s ‘shot heard round the world’ in the UK over their Brexit vote, central banks along with sovereign governments are now deathly afraid the people will finally wake up and rush to the door to get their hands on precious metals. And following the past two trading days of extreme movements upward in both gold and silver, one nation announced a sudden bank policy in which they will no longer allow bank deposits to be used to purchase gold or silver in an attempt to keep the masses from moving out of negative yield bonds and into real wealth protection.
- Gundlach: “When Deutsche Bank Goes To Single Digits People Will Start To Panic”
Following today’s Fed minutes release, Jeff Gundlach had a far less “uncertain” message: “Things are shaky and feeling dangerous,” Gundlach told Reuters in a telephone interview. It’s not just stocks that Gundlach was not too excited about, he also had some choice words about buying Treasuries here. “You’re seeing people who hated the ‘2 percent’ 10-year suddenly loving it at a 1.38-1.39 percent revisit of the all-time low closing yield,” Gundlach said. “If you buy 10-year Treasuries now, I would say, it is a terrible trade location. In fact, it is the worst trade location in the history of the 10-year Treasury.”
- Italy Faces Fight to Shield Bank Investors in Rescue, Fitch Says
Italian Prime Minister Matteo Renzi faces a battle to win European Union approval for a bank-rescue plan that protects investors from taking losses, according to Fitch Ratings. “We believe it will be difficult to reach the political consensus necessary to inject public funds as equity,” Fitch analysts Francesca Vasciminno and Cynthia Chan wrote in a note on Monday. EU state-aid rules, which normally require shareholders and junior creditors to share losses, can be waived in “exceptional circumstances” under the bloc’s treaties. Such an exemption requires unanimous approval by EU member states. Failing that, any injection of public funds under the bloc’s bank-failure law would be subject to state-aid rules.
- Post-Brexit turmoil: Osborne promises to cut corporate tax to less than 15%
UK Chancellor George Osborne has outlined an ambitious plan to build a “super competitive economy” as Britain exits the European Union. His plan, among others, includes slashing the corporate tax to one of the lowest in any major economy. In an interview with Financial Times, Osborne stuck to his earlier warnings that a Brexit could tip the UK into a recession, but instead of dwelling on it, he said that he wanted a leading role in shaping the country’s new economy path. He said Britain should “get on with it” to prove to investors that the country was still “open for business.” Prior to the EU referendum vote, the Chancellor, was tipped to be moving next door to 10 Downing Street. However, post-Brexit, he has made it clear that although he will not be seeking to take over Prime Minister David Cameron’s role, he intended to steer the economy in a post-Brexit era.
- Jetoil: Another Greek Company Files for Bankruptcy
Greek family business, Mamidoil Jetoil, is the latest in a chain of companies filing for bankruptcy according to article 99 of the Bankruptcy Code. The company dealing in storage, transport and trade of petroleum-based products in Greece and the Balkans was founded at the end of the Sixties by three brothers – Kyriakos, George and Nick Mamidakis. The company is following the same line adopted by Marinopoulos supermarket chain and filing for bankruptcy so as to receive temporary protection from its creditors. Recently, the company dealt with cash flow problems that caused it to streamline its operation and close down a number of its service stations due to an inability to pay suppliers.
- LEAKED: Japan’s Mega-Pension Fund Plows into Stocks, Eats $50Bn Loss, Tries to Hide it till after Election
Abenomics is facing elections on July 10 for the less powerful Upper House. But Abenomics hasn’t fared very well. It engaged in the biggest (relative to the economy) money-printing and bond buying extravaganza the world has ever seen. The securities the Bank of Japan has bought, now at ¥426 trillion ($4.15 trillion), amount to 85% of GDP. About $8 trillion in Japanese Government Bonds sport negative yields. Even the 30-year yield is just about zero. The JGB market, once the second largest government bond market in the world, has frozen. The BOJ’s primary dealers are in revolt. Some have already pulled out. Savers are scared. Sales of safes to be installed at home have soared. There have been no structural reforms to speak of. Japan Inc. has benefited enormously, through various tax benefits and special stimulus packages, including foreign aid that is channeled back to Japanese companies. Government deficits are gigantic, providing additional stimulus for Japan Inc. And yet, the economy is languishing.
- Something Huge Is Coming From Japan
Pretend, for a minute, that your country responds to the bursting of a credit bubble by borrowing unprecedented amounts of money and using it to prop up banks and construction companies. This doesn’t work, so you create record amounts of new money and push interest rates into negative territory in an attempt to devalue your currency. But this — amazingly — doesn’t work either. Your currency soars and the inflation you’d hoped to generate never materializes. Now what? Is there even anything left to try, or is it simply time to stand back and let the current system melt down? Those are the questions facing Japan, and the answers are not obvious. Here, for instance, is its inflation rate two years into the largest major-country money creation binge since Wiemar Germany.
- June Auto Sales Down 4.6%, Much Worse Than Expected
Earlier today domestic auto sales came in a bit weaker than expected. Total numbers are now out. And they are much worse than expected. The Bloomberg Econoday consensus estimate for total vehicle sales in June was 17.3 million at a Seasonally Adjusted Annualized Rate (SAAR). The actual report shows 16.7 million SAAR sales.
- Price Discovery, R.I.P.
That was quick. With nearly 85% of the Brexit loss recovered in three days and the market now up for the quarter and the year, what’s not to like? After all, the central banks are purportedly at the ready, and, in the case of the ECB and BOE, are already swinging into action according to their shills in the MSM.
- All the Oil We’ll Never Pump Out
How many times have you read this line? Too many to count? While it’s plainly true, it’s also deeply misleading. It ignores a glaring fact about the gobs of oil under our soil: most of it will never see the light of day. I’m about to take you through the numbers, so buckle up: Let’s assume that in 2016 Venezuela produces 2.4 million barrels of oil per day (these are round numbers, deal with it.) Of these 2.4 million barrels, some 600 thousand barrels go to Chevy Caprices from 1980, (i.e., domestic consumption). That leaves 1.8 million barrels per day for exports, which is roughly $26 billion per year at $40/barrel – assuming we get paid in cash for oil exports!
- The Fed’s Final Bullet
The Fed has no more maneuvers other than to jawbone the dollar lower. Because for a variety of reasons a strong dollar, in the current market environment, is akin to tighter monetary policy. And right now, in the wake of Brexit, tighter monetary policy is clearly not an option. Plus, a stronger dollar (by virtue of the “peg”) strengthens the Chinese Yuan and the Saudi Riyal… something neither country will tolerate. A monthly chart of USD-SAR – since the Riyal is pegged, this is essentially a straight line…but not always. Palpitations usually set in when a crisis is underway and oil prices are coming under pressure. The dollar’s whip-saw in 2016 has The Fed’s fingerprints all over it. The sequence is: Flawed forward guidance of 4 rate hikes (US dollar ramp), followed by a slowing US economy (US dollar softens)… and now the Brexit/ global economic fears (US dollar rallies in “flight to quality”).
- When Government Controls All Wealth
Stock markets continued their rebound on Wednesday. The Dow rose 284 points… or just over 1.5%. London’s FTSE 100 Index was up 3.6%. And Europe’s equivalent of the Dow, the Euro Stoxx 50, was up 2.7%. Investors have realized Brexit isn’t the end of the world. First, because they think it won’t really happen. After all, elites can fix elections, buy politicians, and control public policy… surely, they can fix this! A letter in the Financial Times reminds us that Swedish voters cast their ballots against nuclear power in 1980. The government just ignored them, doubling nuclear power generation over the next 36 years. Second, because investors see the panic over Brexit leading to more spirited intervention by central banks! The EZ money floodgates – already wide open – are to be opened wider. The U.S. has its QE program on hold, but Europe’s scheme is gushing like Niagara. Mario Draghi at the European Central Bank buys $90 billion a month in bonds. And he’s not only buying government bonds; he’s buying corporates, too.
- If the UK Economy Tanks, Don’t Blame Brexit
Last Thursday, the people of Britain voted in a referendum to leave the European Union (EU). Most commentators view Britain’s exit (“Brexit”) from the European Union as bad news for economic growth in the UK and the euro zone. As a result, it is argued, the growth rate in the rest of the world will be also badly affected. t is more likely that, whether the pace of real economic growth over time will weaken or strengthen is going to be set by the pace of expansion in the pool of real wealth. A strengthening in the pace of economic growth implies a strengthening in the rate of growth of the pool of real wealth. Conversely, a weakening in the pace of economic growth implies a weakening in the rate of growth of the pool of real wealth.
- “You want to own gold” Mark Faber warns “Brexit is the excuse for QE4”
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” warned a vociferous Marc Faber said in a Bloomberg TV interview today from Hong Kong. “In that situation, you want to own some gold,” he explained, carefully noting that central planners will be forced into this move because, despite all their extreme experimentation, “global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already.” This has nothing to do with Brexit, stated the Gloom, Boom & Doom Report editor, “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”
- The subprime bubble grew by $1.4 trillion in just one month
Now, I don’t see a whole lot of difference between 2008’s subprime home loan borrowers, versus 2016’s subprime government borrowers. Neither borrower has the financial means to repay its debts. Back in 2008 the banks loaned money to subprime borrowers under the false premise that ‘home prices always go up.’ Today investors buy the bonds of subprime governments based on the false premise that ‘governments always pay their debts.’ Both assumptions are completely absurd and defy even the most cursory lessons of financial history.
- Brexit will impact eurozone recovery: ECB board member
The uncertainty sparked by the British vote to leave European Union will “inevitably” harm economic recovery in the euro area, European Central Bank executive board member Benoit Coeure said in a newspaper interview Friday. The pick-up in the eurozone economy “will inevitably suffer from the ‘uncertainty shock’ that the British referendum has triggered, even if the impact is difficult to quantify at the moment,” Coeure told the French daily Le Monde. The effect would be all the more damaging because “the recovery in the euro area is already there. It’s healthy and driven by domestic demand and by investment,” even it was being “kept down by high unemployment levels and debt,” he argued. The victory of the Leave vote in Britain last week has already led to severe turbulence on the financial markets.
- Scathing new report shows just how bankrupt Social Security really is
Last week, a group of analysts published an astonishing report about the future of Social Security in the United States, and their remarks were nothing short of damning. According to their calculations, for example, these analysts claim that Social Security is already running a huge deficit to the tune of tens of billions of dollars each year. In fact, this Social Security funding deficit has been taking place for several years now, and it’s actually accelerating. So the problem worsens each year. According to the analysis, the astounding rise in Social Security recipients vastly outpaces any growth in tax revenue received into the program. And this trend will continue for decades. The report goes on to describe Social Security’s two main trust funds, OASI (for ‘Old Age Survivors Insurance’) and DI (‘Disability Insurance’). They tell us that DI actually went bust several months ago.
- What’s behind Venezuela’s economic crisis?
Tomorrow in Venezuela, President Nicolas Maduro will end electricity rationing that begun in April, following a drought that affected water levels at the hydroelectric dam that provides most of the country’s power. The rationing has cut off electricity to much of the country for fours a day. Still, Venezuelans are struggling with shortages of food, medicine and other necessities, with increasing finger pointing at Maduro’s leadership. For more on these challenges, “New York Times” reporter Nicholas Casey joins me via Skype from the nation’s capital, Caracas. Nicholas, the pictures and the stories that we’ve seen have been really tragic. I mean, we’re talking about people rioting for food. Has that basic need got any closer to being met?
- The Collapse of Western Democracy — Paul Craig Roberts
There is controversy around the statement attributed to Martin Schulz, president of the EU parliament: “The British have broken the rules. It is not the philosophy of the EU that the crowd
can determine its fate.” This statement attributed to Schulz comes from a German language magazine. Here is the statement in German: “Die Briten verstoßen gegen die EU-Rahmenbedingungen, da es nicht in der Philosophie der EU liegt, dass der Mob über Aufstieg und Untergang der EU entscheiden darf.” This does translate to the English above. However, it appears that the statement was from a satire, whether of Schulz or the EU I do not know. I also do not know whether Schulz’s views justify the satirical jab or whether the words were assigned to him because of his position. Nevertheless, the fact that apparantly it was satire was lost in the transmission chain.
- Russia & China Met Twice Last Week to Propose Monetary Reset – Willem Middelkoop
Russia and Chinese leaders met twice during last week and called (again) for an end to the current (dollar) system.From my contacts with Chinese insiders I know they really understand our problems well and are clearly preparing for The Next Phase (a monetary and geopolitical reset…
- Gerald Celente – This Is Bigger Than Brexit
Although stocks bounced back on “Turnaround Tuesday” on the belief that contagion has been contained following the rout that wiped out $3.6 trillion from equity markets following Great Britain’s referendum last Thursday to “Brexit” the European Union… we disagree. It’s bigger than Brexit… Despite many of the world’s largest hedge funds betting billions on a “Remain” victory and British bookies putting the chances of “Leave” at barely 10 percent, in my June 15 KWN interview I said, “Should the ‘Leave’ vote win, we forecast the US dollar and gold prices will spike while equity markets, particularly those currently under downward pressure, will sink deeply lower.” Since then, gold hit two-year highs, the British pound fell to 31-year lows and currencies around the world hit new lows against the US dollar – or tested old ones – as investors sought safe-haven assets such as the dollar and Japanese yen.
- SILVER JUST TOOK OUT $20: “We are at a flashpoint in history” — Andy Hoffman
Silver just took out $20 in Sunday night Globex trading, but that’s not all, silver briefly pierced $21 Sunday night before settling back to the mid $20’s. Andy Hoffman from Miles Franklin joins me for a Sunday update and warns, “We are at a flashpoint in history… there is literally a tiny, tiny window left for people to protect themselves before all hell breaks loose.”
- Could This Rumor About China Be True? Plus The Latest On Gold, Silver, Brexit, Soros And More
With global markets continuing to experience wild trading in the aftermath of the historic Brexit vote, here is a quick update on the war in the gold and silver markets, the latest end of quarter rumors, plus gold, silver, Brexit and more.
- Can This Be True? Is The Price Of Silver Really Headed To A Jaw-Dropping $690?
With the price of silver surging near $19 and the gold market holding recent gains at $1,320, the following was sent to King World News from analyst David P. out of Europe. The work below is not David’s and we are not sure if it comes from a colleague or not but it is worth featuring because of the astonishing price target that it sets for the price of silver.
- Heal Yourself 101 – Learn to live the way you were designed
Everything you need to know on how to dramatically change your life and never get sick again. Many people who have done this have had dramatic results with everything from impotence to brain cancer. This isn’t a trendy fad diet, it’s an understanding on how to live the way we were designed. Explained in simple-to-understand language, this book gets straight to the point. You can change your life with simple things that cost almost nothing, right in your own home, starting immediately. This book was shared in the ‘10 Steps To Avoid The Crash‘ guide. Heal Yourself 101 was available for $29.97 and for a short period of time it is available in PDF format for free.
- Doug Casey Debunks the Common Excuses for Staying In One Country
Tell a person that it’s a big beautiful world, full of fresh opportunities and a sense of freedom that is just not available by staying put and you will inevitably be treated to a litany of reasons why expanding your life into more than one country just isn’t practical. Let’s consider some of those commonly stated reasons, and why they might be unjustified. While largely directed at Americans, these are also applicable to pretty much anyone from any country.
- Warning: This Could Be the Start of a Global Banking Crisis
Europe’s banking system is collapsing. Over the past year, shares of Deutsche Bank (DB), Germany’s biggest bank, have plunged 56%. Swiss banking giant Credit Suisse (CS) is down 62% over the same period. Yesterday, both stocks hit record lows. Dozens of other European bank stocks have also crashed. The Euro STOXX Banks, which tracks 48 of Europe’s largest banks, is down 48% over the past year. This is a major issue. That’s because banks are the cornerstone of the financial system. They keep money flowing through the economy. If they’re struggling, it often means the economy is having major problems. Right now, European banks are flashing bright warning signs. That’s not just bad news for Europe—it’s also a serious threat to the rest of the world.
- What does the Brexit mean for the global oil market?
The voters’ decision to leave the EU has created a global ripple effect. The global oil market is now getting ready for a longer delay in investments and pricing suppression, an economic slowdown not needed at the time. Immediately, the value of a pound dropped to a thirty-year low of $1.34, the price of Brent fell 5%, and the world’s stock exchanges experienced a plunge.
- Do emerging markets like Brexit?
Who’s afraid of a big bad Brexit? Not emerging markets who have been through days of strong growth, including having currencies buoyed against the US dollar since Britain voted to leave the European Union last week. In Brazil, the currency real opened 2.16 per cent stronger against the US dollar on Wednesday, reaching its highest level in 2016. It was a similar picture for the Mexican, Chilean and Colombian pesos. Meanwhile, the Russian ruble appeared to have regained considerable ground reaching its strongest against the US dollar since October last year. The benchmark Russian exchange MICEX continued its second day of gains, growing 1.3 per cent in similar fashion to markets in other emerging economies. Overall, while most global markets roiled as Brexit caused $3 trillion in investments to be shaved off exchanges around the world, emerging economies fared better.
- Oil Crashes on Brexit, Oil Imports at a 42 Month High, Record Gasoline Output and Usage
Oil prices crashed along with global financial markets on Friday following the British vote on Thursday to exit the European Union (typically referred to as “Brexit”), which is widely expected to precipitate a period of political instability in Europe. Conservative British Prime Minister David Cameron, who had campaigned for remaining in the EU, submitted his resignation; British Labor Party leader Jeremy Corbyn also faces a no-confidence vote, as both major parties had campaigned to remain in the EU. In response to the British vote, populist parties on the left and right across Europe are calling for referendums in their own countries, with speculation that France, the Netherlands, Austria, Finland and Hungary might also vote to leave the EU, effectively rebalkanizing the continent.
- Brexit BOOM: FTSE 100 leaps to HIGHEST level since 2015 just a week after EU referendum
BRITAIN’s top stock market has surged to its highest level in almost a year, just one week after the vote to leave the European Union (EU). The FTSE 100 jumped again in Friday trading to sit at around 6,577 – its highest level since August 2015. The index has been climbing since Tuesday as confidence recovered from the initial shock over the outcome of the referendum. Despite experiencing one of the most volatile weeks since the 2008 financial crisis, the FTSE posted its best week since December 2, 2011, making gains of 7.15 per cent.
- NIRP Absurdity Soars after Brexit, Hits $11.7 Trillion
The amount of government bonds that sport negative yields – an all-too-real absurdity where bondholders in effect are shanghaied into paying the government for the privilege of lending it money – has soared 12.5% after the Brexit vote, from $10.4 trillion at the end of May to $11.7 trillion as June 27, Fitch Ratings reported today. The action was in longer-dated bonds, with maturities of 7 years and over. Those with negative yields soared to $2.635 trillion, up 62% from the end of May and up 93% from the end of April, having nearly doubled in two months! The German 10-year yield fell below zero during the period, now at -0.124%. Japanese yields are below zero all the way out to 17 years. And “virtually all” of the Swiss sovereign debt luxuriates in negative yields.
- Cryptocurrency Crash
One of the more profitable trades this year was in the cryptocurrency Bitcoin. For those unfamiliar, Bitcoin is a digital asset and payment system — a virtual currency. It’s considered a cryptocurrency because it doesn’t require a central bank to handle its transactions. It’s all self-contained through technology that encrypts and records a ledger over a distributed computer system. This technology is called the blockchain. The benefit of blockchain technology comes from its transparency. Everyone can see every transaction. The whole system is also decentralized. There’s no single institution or bank that controls the transferring of assets back and forth. This (advocates claim) removes the possibility of corruption, theft, and a whole host of other common problems that come with your standard financial system.
- It Gets Real: Manhattan Apartment Sales Plunge
Real estate is local. And so housing bubbles are local. When enough of them happen, they coagulate into a national phenomenon. This has already happened. In March 2013, we started calling this phenomenon Housing Bubble 2, and we’ve watched in awe how it bloomed, nurtured by ultra-low mortgage rates, government subsidies, the Fed that is relentlessly “healing” the housing market, yield-desperate investors, private equity firms, Wall Street, a surge of foreign buyers who want to get their money – however they’d obtained it – out of harm’s way, and a million other factors. All of it has been accompanied by a national boom in hype. Now there are signs that our awe-inspiring Housing Bubble 2, like all housing bubbles, is beginning to unravel. This too is local, here and there, while still booming in other places. It shows up in some key markets. Then it spreads. When it spreads far enough, the unraveling of Housing Bubble 2 becomes a national phenomenon.
- How Can We Celebrate Our Independence When Most Americans Are Willingly Enslaved To The Matrix?
Did you know that the average U.S. adult consumes 10 hours and 39 minutes of media a day? Nielsen has just released brand new numbers on the media consumption patterns of Americans, and they are absolutely staggering. According to Nielsen, the amount of media that we consume per day has increased by an hour just since the first quarter of 2015. This is the time of the year when we celebrate our independence, but how in the world can we ever be truly independent when most of us are willingly plugging ourselves into “the Matrix” for more than 10 hours a day? If you feed anything into your mind for hours every day, it is going to change the way that you think, the way that you feel about things, and the way that you view the world. This endless barrage of “news” and “entertainment” has fundamentally altered the belief systems of tens of millions of Americans, and this has very serious implications for our society moving forward.
- Rio 2016: ‘Welcome to Hell’ warn police
There was a nasty surprise awaiting passengers in the arrivals hall at Rio de Janeiro’s Galeao International Airport on Monday. Along with the relatives carrying flowers and taxi drivers waiting with name boards there were lines of off-duty police with banners that had a far more ominous message: “Welcome to Hell”. “Police and firefighters don’t get paid,” the banners, in English and Portuguese, went on. “Whoever comes to Rio de Janeiro will not be safe”. Photos of the protest have been widely shared on social media and in the Brazilian press. The image above was posted on the photo sharing site Imgur, where it was viewed more than three million times in less than a day.
- Puerto Rico Says It Will Default Even With Congressional Aid
Two days before a potential historical default, Puerto Rico Governor Alejandro Garcia Padilla made it clear that the commonwealth won’t pay bondholders even as Congress votes on a bill allowing the island to restructure its $70 billion in debt. “On July 1, 2016, Puerto Rico will default on more than $1 billion in general obligation bonds, the island’s senior credits protected by a constitutional lien on revenues,” Garcia Padilla wrote in a editorial posted on a CNBC website. The lapse will mark the first time the U.S. territory has failed to pay what it owes on general-obligation debt, a $13 billion swath that its constitution says has the top claim to the government’s funds. Garcia Padilla previously said the commonwealth couldn’t raise enough to cover what’s owed to bondholders even if he shut down the government. The island has about $2 billion in principal and interest payments due Friday.
- Millennials Are Pretty Cocky About Their Investing Skills
One of the great things about young people is their optimism, the confidence that everything is going to work out. Sometimes, though, that can get them into trouble, like behind the wheel of a car. Or as an investor. A new survey found millennials were more positive about the future than their parents when it came to investments. They also think themselves far more knowledgeable about how to manage money, which, as anyone will tell you, might translate into behavior that leads to bad financial outcomes.
- World-Check terrorism database exposed online
A financial crime database used by banks has been “leaked” on to the net. World-Check Risk Screening contains details about people and organisations suspected of being involved in terrorism, organised crime and money laundering, among other offences. Access is supposed to be restricted under European privacy laws. The database’s creator, Thomson Reuters, has confirmed an unnamed third-party exposed an “out of date” version online. But it says the material has since been removed. Security researcher Chris Vickery said he discovered the leak. He notified the Register, which reported that it contained more than two million records and was two years old.
- Repo Rates Surge to Post-Crisis High as Bank Dealers Pare Back
The rate for borrowing and lending government debt surged Thursday to the highest since the financial crisis as banks reined in collateral lending to shore up balance sheets ahead of the quarter-end. With fewer dealers borrowing cash and posting government debt as collateral, money funds — the key lenders of cash in the repurchase agreement market — gravitated to buying Treasury bills and parking cash with the Fed via their RRPs during quarter-end, driving overnight rates higher.
- Richmond Fed Dead-Cat-Bounce Crashes To 3-Year Lows
With the biggest miss in two years, Richmond Fed collapsed to -7 (lowest since Jan 2013) from March’s 22 print (six year highs). The farcical flip-flop leaves the average workweek plunging into contraction, number of employees dropping, New Order volume crashing, and worse still, future expectations of hisring and work week is plunging. Best in 6 years to worst in over 3 years…
- Forget December. Forget Next Year. The Fed’s Done Hiking Until 2018
Circle Jan. 31, 2018, on the calendar. That’s the soonest the Federal Reserve hikes next. At least if money market derivatives are to be believed. Traders, who have consistently been better at projecting the path of interest rates than the Fed itself, are now pricing in a greater probability that policy makers will cut rates in upcoming meetings than raise them. They don’t assign more than a 50 percent chance of an increase until the beginning of 2018, and don’t price in a full rate hike until the final quarter of the year.
- The Recent Rise in Delinquency Rates on Bank Loans Is Shocking (Is a New Banking Crisis Imminent?)
The delinquency rate on loans is key in understanding banking. It answers one question: what percentage of loans is overdue for payment? The delinquency rate is by far the most useful indicator for “credit stress.” It seems, however, as if delinquency no longer counts. Few are paying attention to the quick and sudden rise of the delinquency rate. What does it tell us and is a new banking crisis imminent? This Is What Happened after Janet Yellen Hiked the Fed Funds Rate in December. I have said it many times over and I will repeat it here: the last time around, it took Fed-chairman Alan Greenspan over two years and seventeen rate hikes to bring the Fed funds rate from a then all-time-low of 1% to 5.25%, before the U.S. economy suffered the worst recession since the 1930s. We are not so lucky this time.
- April Spending Exuberance Plunges Back To Earth In May As Income Growth Slows
After an exuberant April, spiking hope that everything was awesome with a surge in spending, May has dragged US consumers back down to earth. The 1.1% (revised) jump in spending in April (highest since Aug 09) is over as May’s 0.4% gain is back in the land of ‘normal’ once again. Income rose just 0.2% MoM (less than expected) slowing dramatically from last month to near the weakest YoY growth since March 2014. The savings rate fell once again on the back of this (down 0.1%) to 5.3%. With YoY Income growth almost the weakest since March 2014 and spending fading…
- Pending home sales down 3.7%, marking first annual drop in two years
The final push of the spring housing season turned out weaker than expected. Signed contracts to buy existing homes fell 3.7 percent in May compared to April, according to the National Association of Realtors. April’s reading was revised down. These so-called pending home sales were 0.2 percent lower than May of 2015, the first annual drop since August of 2014. “With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity,” said Lawrence Yun, chief economist for the Realtors. “Realtors are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”
- API Claims A 3.9 Million Barrel Draw
The latest inventory report by the American Petroleum Institute injected some optimism into crude oil markets, suggesting that U.S. stockpiles fell by as much as 3.9 million barrels in the week to June 24. This is significantly more than the 2.4 million barrels seen by analysts polled by Reuters and the sixth consecutive week of inventory draws, should the API information be confirmed by the official figures that will be released later today by the Energy Information Administration. Last week, the API said inventories had plummeted by 5.2 million barrels in the week to June 17, but EIA data revealed that the draw was much more moderate, at less than a million barrels.
- East Coast Ports Hit By Import Decline
Imports slumped at some of the East Coast’s busiest ports in May, as high business inventories and shifting trade patterns that favor the West Coast curbed volumes. On Tuesday the Port Authority of New York and New Jersey reported that May loaded imports fell to 268,861 twenty-foot equivalent units – a common measure of shipping container volume – down 4.7% from the same month last year. The total volume of containers passing through the port fell by 6.1% in May.
- Chiacgo PMI Spikes To 18-Month High – 7 Standard-Deviation Beat – As Employment Crashes?!
Seriously!! Chicago PMI spiked to 56.8 in June (from 49.3) – higher than the highest estimate and seven standard deviations above expectations. This is the highest since Jan 2015. Simply put, the number is beyond any credibility, as despite higher orders and output, demand for labor fell as employment contracted at the fastest pace since November 2009.
- Carney prepares for ‘economic post-traumatic stress’
The Bank of England is preparing to unleash another round of monetary stimulus as it battles to contain the economic fallout of The UK’s decision to leave EU. In a stark warning to politicians, governor Mark Carney said a downturn was on its way and Britain was already suffering from “economic post-traumatic stress disorder”. He said the central bank would take “whatever action is needed to support growth”, which probably included “some monetary policy easing” in the next few months, in an attempt to reassure the markets and the general public. But Mr Carney also said that central bankers could do only a limited amount to mitigate the pain.
- “You Want To Own Gold” Marc Faber Warns “Brexit Is The Excuse For QE4”
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” warned a vociferous Marc Faber said in a Bloomberg TV interview today from Hong Kong. “In that situation, you want to own some gold,” he explained, carefully noting that central planners will be forced into this move because, despite all their extreme experimentation, “global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already.” This has nothing to do with Brexit, stated the Gloom, Boom & Doom Report editor, “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”
- What are my choices?
Pastor Williams has asked me to share with you this information from an unknown source regarding your choice in the upcoming November presidential election. Please share it with everyone you can. If I were not already convinced this message would have convinced me. It is also a good read as it makes its points!
- Hillary Clinton says American 401(k)s lost $100 billion after Brexit vote
In a speech attacking her opponent, Hillary Clinton said Donald Trump cheered while the economy reeled in the aftermath of Britain’s shocking vote to leave the European Union. “On Friday, when Britain voted to leave the European Union, he crowed from his golf course about how the disruption could end up creating higher profits for that golf course, even though, within 24 hours, Americans lost $100 billion from our 401(k)s,” Clinton said in Ohio June 27. “He tried to turn a global economics challenge into an infomercial.” Trump did say last week that Brexit would benefit Turnberry, his golf course in Scotland, because a weaker pound would bring more tourists. We wondered, though, about the other part of Clinton’s claim: that Brexit caused 50 million Americans with 401(k) retirement savings accounts to lose $100 billion in just 24 hours.
- ‘The end is coming,’ says Ron Paul
The historic U.K. vote to leave the European Union is a sign of a major global meltdown, not just a watershed that marks the end of a unified continent, former Rep. Ron Paul says. “I think [the EU] will become nonfunctional,” Paul told CNBC’s ” Futures Now ” on Tuesday. “It really is coming to an end. It doesn’t mean tomorrow or the next day, but people are going to be really unhappy. The end is coming, but it isn’t coming because of the breakup,” he added. Paul attributed the fallout to “bad fiscal policies” around the globe. He said that as long as interest rates remain low, the markets will remain in bubble territory.
- Brexit will allow insurers to escape ‘absolutely dreadful’ EU regulation, claims former civil service chief
British-based insurers may be better off outside the EU because capital rules have damaged competitiveness and constrained the sector’s ability to expand, according to the former head of the civil service. Lord Turnbull, who served as a non-executive director at Prudential for almost a decade, described the regulatory framework, known as Solvency II, as “absolutely dreadful”. Solvency II has drawn widespread criticism from the industry and UK regulators, which have warned that the high costs of implementing the framework have so far failed to level the playing field in the sector. Lord Turnbull said the UK’s decision to leave the EU could benefit the industry.
- This economist thinks China is headed for a 1929-style depression
Andy Xie isn’t known for tepid opinions. The provocative Xie, who was a top economist at the World Bank and Morgan Stanley, found notoriety a decade ago when he left the Wall Street bank after a controversial internal report went public. Today, he is among the loudest voices warning of an inevitable implosion in China, the world’s second-largest economy. Xie, now working independently and based in Shanghai, says the coming collapse won’t be like the Asian currency crisis of 1997 or the U.S. financial meltdown of 2008. In a recent interview with MarketWatch, Xie said China’s trajectory instead resembles the one that led to the Great Depression, when the expansion of credit, loose monetary policy and a widespread belief that asset prices would never fall contributed to rampant speculation that ended with a crippling market crash.
- UK faith leaders unite in condemning post-referendum rise in xenophobic abuse
Leaders of Britain’s main faith communities have united in condemning intolerance amid mounting reports of xenophobic and racist abuse in the wake of the EU referendum result. The Anglican archbishop of Canterbury, the Catholic archbishop of Westminster, the chief rabbi and senior imams have all spoken out against division and expressions of hatred. In Brussels, the United Nations human rights chief said he was deeply concerned about reports of attacks on minority communities and foreigners. Zeid Ra’ad al-Hussein urged the UK authorities to prosecute those responsible, saying racism and xenophobia were “completely, totally and utterly unacceptable in any circumstances”. Police recorded a 57% increase in hate crime complaints in the four days following the referendum, in which immigration was a key plank of the leave campaign. Justin Welby, the leader of the Church of England, said people of “evil will” were using the referendum result as an excuse to vent their hatred.
- Another Case For Exit——-America Should Get Out Of NATO
In its reporting on Brexit, the New York Times asks an interesting question: “Is the post-1945 order imposed on the world by the United States and its allies unraveling, too?” Hopefully, it will mean the unraveling of two of the most powerful and destructive governmental apparatuses that came out of the postwar era: NATO and the U.S. national-security state. In fact, although the mainstream media and the political establishment elites will never acknowledge it, the irony is that it is these two apparatuses that ultimately led to the Brexit vote.
- 16 Reasons to Celebrate Brexit’s Win
Watching the Brexit campaign generated mixed feelings: it was a little like the man who saw his mother-in-law drive his new Mercedes off a cliff. In the United Kingdom, some people who hated free trade, immigration and market innovation challenged the officious, wannabe superstate headquartered in Brussels. Who to cheer for? We should cheer for the Brexiteers, who deserve at least a couple of hurrahs. The European Union created a common market throughout the continent, an undoubted good, but since then has focused on becoming a meddling Leviathan like Washington, DC. For Britain, the virtues of remaining appeared to pale in comparison to the likely costs of continued subservience to Brussels. In a variety of imperfect ways, Brexit promoted liberty, community, democracy and the rule of law. In short, the good guys won.
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Pastor Williams has asked me to share with you this information from an unknown source regarding your choice in the upcoming November presidential election. Please share it with everyone you can…
If I were not already convinced this message would have convinced me. It is also a good read as it makes its points!
WHAT ARE MY CHOICES?
The folks speaking out against Trump are helping me make up my mind a little more every day!
- Is he the Perfect Candidate whose thoughts mirrors mine on all fronts? NOPE
- Does he say everything the way I wish he would say it? NOPE
- Am I absolutely sure that his motives are absolutely Pure? NOPE
- Can I point to any other Dem Politician that I like better? NOPE
- Is there any of the other RINO Politicians I like better? NOPE
- Am I going to sit home, refuse to Vote, and let Hillary win; because he is NOT Perfect? NOPE
- Do I like what I have seen for the last 7-1/2 years with the Jerk that sleeps in my White House? NOPE
- Do I like the “fundamental changes” that same Jerk has brought about in MY America? NOPE
OK, your turn to decide what you are going to do in about 4 months!
Trump’s presidential qualifications…
- Obama is against Trump… Check
- The Media are against Trump… Check
- The establishment Democrats are against Trump… Check
- The establishment Republicans are against Trump… Check
- The Pope is against Trump… Check
- The UN is against Trump… Check
- The EU is against Trump… Check
- China is against Trump… Check
- Mexico is against Trump… Check
- Soros is against Trump… Check
- Black Lives Matter is against Trump… Check
- Move On is against Trump… Check
- Koch Brothers are against Trump… Check
- Bushes are against Trump… Check
- Planned Parenthood is against Trump… Check
- Hillary & Bernie are both against Trump… Check
- Illegal aliens are against Trump… Check
- Islam is against Trump… Check
- Kasich is against Trump… Check
- Hateful, racist, violent Liberals are against Trump… Check
NOW THAT BEING SAID…
It seems to me, Trump MUST BE the Best Qualified Candidate we could ever have.
If you have so many political insiders and left wing NUT CASES— all SCARED TO DEATH, that they all speak out against him at the same time!
Most of all, it will be the People’s Choice…
- He’s not a Lifetime Politician… Check
- He’s not a Lawyer… Check
- He’s not doing it for the money… Check
- He’s a Natural Born American Citizen born in the USA from American parents… Check
- Whoopi says she will leave the country…
- Rosie says she will leave the country…
- Sharpton says he will leave the country…
- Cher says she will leave the country…
- Cyrus says she will leave the country…
- The Constitution and the Bill of Rights will prevail….
- Hillary will go to jail…..
- The budget will be balanced in 8 years….
- Americans will have first choice at jobs…..
- You will not be able to marry your pet….
- You will be able to keep your gun(s) if you qualify (Not a criminal or crazy, etc.)…
- Only living, registered U.S. citizens can vote….
- MUST SHOW ID TO VOTE…
- You can have and keep your own doctor…
- You can say whatever you want without being called a racist, Islamophobic, xenophobic, etc….
He will make AMERICA GREAT AGAIN!
Come to think of it, we have no place to go, but UP!…
REMEMBER IN NOVEMBER!!!!!!!
Pass it on and God Bless America!!
Latest News From June 24, 2016 to June 30, 2016:
- Jim Rogers on Brexit: ‘Worse than any bear market you’ve seen in your lifetime’
The UK’s decision to leave the European Union will lead to an economic crisis more severe than what the world faced in 2008, according to legendary investor Jim Rogers, chairman of Rogers Holdings. “This is going to be worse than any bear market you’ve seen in your lifetime,” he said on Yahoo Finance’s “Market Movers” program Monday. “2008 was bad because of debt. The debt all over the world is much, much higher now. Stocks in the US, for instance, have been going sideways for 18 months to 24 months. That’s called a distribution by many people. When you have distribution for a year and a half, it usually leads to bad things.”
- The United States Of Europe: Germany And France Hatch A Plan To Create An EU Superstate
If you believe that the Brexit vote is going to kill the idea of a “United States of Europe”, you might want to think again. In fact, it appears that the decision by the British people to leave the European Union is only going to accelerate the process of creating an EU superstate. As you will see below, one of the largest newspapers in the UK is reporting that the foreign ministers of France and Germany have drafted “a blueprint to effectively do away with individual member states”. So even though men like George Soros are warning that the eventual dissolution of the European Union is “practically irreversible” after the Brexit vote, the truth is that the globalists are not about to give up so easily.
- Gerald Celente Just Issued A Dire Warning To The World After His Shockingly Accurate Brexit Prediction
Top trends forecaster in the world, Gerald Celente, just issued a dire warning to King World News on the heels of his shockingly accurate Brexit prediction. “The world certainly did change forever on that historic vote to leave the EU. As I have long predicted, we are now looking at the dissolution of the European Union. Since the British voted to Brexit, what have we seen throughout Europe? France, Germany, Italy, Finland, and the Netherlands, are all calling for referendums to leave the EU.
- ALERT: Man Whose Work Is Praised Around The World Says Gold To Soar $1,000 In 24 Months
Interest rates have never been as low as today; 5,000 years of data confirm this. In the meantime government bonds valued at more than eight trillion dollars have negative yields to maturity. As an asset class, fixed income securities are more expensive than ever before. By now, central bank interventions have decimated all notions of honest, free market price discovery in bond markets and beyond. The centrally planned bubble in bonds is about to bring about the “euthanasia of the rentier” so craved by Keynes himself and his acolytes. When this bubble inevitably bursts, it will be abundantly clear how valuable an insurance policy in the form of gold truly is.
- Is This Epicenter Of Serious Trouble About To Send Shockwaves Across The World?
Well, it looks like my traveling finally set a world record for volatility that will likely never be topped. I am of course referring to all the wild gyrations in virtually every tradeable market that took place on Friday — which continued for the most part today. There are any number of topics I could try to discuss, but I would like to focus on what I think are the key points of the ramifications of the Brexit vote. The very first thing to keep in mind is that the “winner” of all of this is liable to be a massive amount of uncertainty (compounded by the U.S. election looming in five months), which inhibits businesses from making decisions and at the margin causes people to sell many types of assets.
- Report to Supporters: The British Woke UP — Can The Americans?
Many thanks for the support that you give to the website and for the words of encouragement and appreciation that you send to me. The website resulted from you calling me out of retirement. It is widely read and translated into foreign languages. I try to read every email, but it is not possible for me to read and comment on the many articles and books that you send or to respond to your questions over a wide range of issues, not all of which I know anything about. This website is a great deal of work. In our time to be truthful is to be provocative. To write provocatively leaves little room for error or mistatement as today’s euphemism terms it. I could shill for the establishment and be wrong 98% of the time and nothing ever would be said about it. But there is no forgiveness for a provocative truth-teller.
- China state planner on UK investment after Brexit: “Wait and see”
Chinese companies may want to “wait and see” the impact of Britain’s vote to leave the European Union before they invest in the country, Xu Shaoshi, the head of China’s top economic planner said on Sunday, according to Reuters. However, the impact of the referendum on China’s economy will be limited, the chairman of the National Development and Reform Commission said. At the World Economic Forum meet in Tianjin city on Monday, Chinese Premier Li Keqiang said that China would continue strengthening ties with Europe and the UK.
- ECB Blows €400bn on “Brexit Black Friday” Bank Bailouts
Dealing with a Financial Crisis under cover of Brexit Chaos. Remember TARP, the Troubled Asset Relief Program that the US Congress approved to bail out banks and other companies during the Financial Crisis? $700 billion were authorized, later reduced to $475 billion. The Treasury eventually dispersed $432 billion. I bring this up because the ECB bailed out the European banks with more than TARP, in just one day: on Brexit Black Friday. The ECB saw what was happening to the shares of the largest banks on that propitious day.
- How Vulnerable is the Shaky US Economy to Brexit Fallout and European Bank Meltdown?
You know things are getting bad when our leaders call for calm. US Secretary of State John Kerry just did that. “It is absolutely essential that we stay focused on how in this transitional period, nobody loses their head, nobody goes off half-cocked, people don’t start moving on scatter-brained or revengeful premises,” he told reporters in Brussels on Monday after Brexit had thrown the EU into political turmoil, while European bank stocks had their worst two-day meltdown ever, on the toxic mix of Brexit and a full-blown banking crisis. And all kinds of things are suddenly happening.
- Crash of All Crashes Coming-Bo Polny
Market cycle analyst Bo Polny says the vote by the UK (Brexit) to leave the European Union is a big turning point. Polny says, “Brexit is England and part of the cycle and I believe looks to be the actual trigger that is going to take gold higher and the trigger that is going to cause the world equity markets to collapse. It looks like it started, but we will have a little bit of time yet before things get extremely crazy. We are not going to get out of June before all heck breaks loose.” Polny also is predicting the Dow will eventually grind down to around the 5,000 level. Polny explains, “Basically, after the Dow hits that 5,000 or 6,000 point, it never recovers. This is the crash of all crashes. This is the one where there is no recovery.”
- US Banks Are Crashing & British Banks Halted After Crashing
The Brexit contagion is spreading as USD liquidity and counterparty risk in the interconnected global financial system has reached US banks with Goldman at 3 year lows and BofA and Citi plunging over 12%. This happens just two days after the Fed released its latest stress test results finding that none of the 33 banks tested would need additional capital in case of a “severe” financial crisis. That conclusion may be tested soon.
- King Says Carney Calm Will Guide U.K. Through Brexit Uncertainty
Mark Carney will help to guide the U.K. through the next few months amid political stasis after the Brexit vote, according to his predecessor as Bank of England governor. Mervyn King said the “most important thing” for the U.K. is an effective government and opposition. Both are absent after Britain’s vote to leave the European Union prompted Prime Minister David Cameron to resign and led to turmoil in the opposition Labour Party. Concern about political leadership was one factor cited by S&P Global Ratings on Monday when it stripped the U.K. of its top credit grade.
- Banks Suffer More Downgrades, Other Sectors To Feel Post-Brexit Pinch: Tuesday’s Analyst Actions
After Monday’s deluge of downgrades on European banks, RBC Capital Markets continued the pile-on. “There has been a strong correlation between share prices and consensus EPS,” the analysts write. “We expect a prolonged period of uncertainty post Brexit to negatively impact business and consumer confidence across the U.K. and Europe and beyond.” And in this case, the team sees a number of reasons why their peers will also sour on the outlook for banks’ bottom lines. Estimates for net interest income, investment banking revenues, and equity-sensitive revenues should come under the knife while loan loss provisions move higher, they anticipate.
- Italy eyes €40bn bank rescue as first Brexit domino falls
Italy is preparing a €40bn rescue of its financial system as bank shares collapse on the Milan bourse and the powerful after-shocks of Brexit shake European markets. An Italian government task force is watching events hour by hour, pledging all steps necessary to ensure the stability of the banks. “Italy will do everything necessary to reassure people,” said premier Matteo Renzi. “This is the moment of truth we have all been waiting for a long time. We just didn’t know it would be Brexit that set the elephant loose,” said a top Italian banker.
- Brexit Is Just The Beginning: A Tidal Wave Of Popular Revolt Against The Ruling Elites
Now that Britain has done the unthinkable and voted to leave the European Union, the critics are ruthless in their condemnation of Prime Minister David Cameron for his “irresponsible act” in calling the referendum in the first place. As if it were his fault. As if he was responsible for the bloated Brussels bureaucracy and undemocratic governance structure in the EU. As if he were to blame for the domination of an unequal union by a German chancellor responsive and accountable only to her own domestic political concerns.
- Ron Paul: The People Will Not Suffer From Brexit, Only the Global Banking Elite Will
Since 1958, the European Union has been absorbing independent states across the continent. Starting with the original inner 6 countries (Belgium, France, Italy, Luxemburg, Netherlands, and West Germany) and ending with Croatia in 2013, the forced centralization of Europe was a massive and ominous force with which to be reckoned. Until now. On Friday, the people of Great Britain made their voice heard. They no longer want to be a part of the European Union and for good reason. For decades they have sat back and watched the global elite enrich themselves through special trade agreements ostensibly designed to bolster the economy, but in reality grant special treatment to those close to the top. George Soros exposed the dependence of the elite on the EU when he took to fearmongering about rampant financial collapse upon Brexit.
- ‘The Unthinkable Is Happening’: Italy Demands EU Reform, Warns Over Full Collapse
Italian ministers warned Saturday that the European Union must change direction or risk collapse after Britain’s vote to leave the bloc. “The unthinkable is happening,” Finance Minister Pier Carlo Padoan said. “A double reaction to Brexit is under way, one financial, one political. The financial one, at least until now, is limited. I am more worried about the political one. “There is a cocktail of factors that can lead to various outcomes, including a further push towards disintegration.”
- Barclays, RBS Hit Post-Crisis Lows on Banks’ Brexit Plunge
Barclays Plc and Royal Bank of Scotland Group Plc had their shares halted as the banks plunged to the lowest level since the financial crisis, accelerating declines after the U.K.’s vote to leave the European Union sparked fears about political and economic risks. Barclays shares fell more than 17 percent for the second straight day, and the stock has now lost more than half its value in the last 12 months. RBS plummeted as much as 26 percent in London trading, reaching the lowest levels since January 2009 amid the lender’s taxpayer bailout. Trading in both banks was halted earlier in the day amid the rapid drops.
- European Banks Have Their Worst Two Day Stretch EVER As The Global Financial Crisis Intensifies
Over the last two trading days, European banks have lost 23 percent of their value. Let that number sink it for a bit. In just a two day stretch, nearly a quarter of the value of all European banks has been wiped out. I warned you that the Brexit vote “could change everything“, and that is precisely what has happened. Meanwhile, the Dow was down another 260 points on Monday as U.S. markets continue to be shaken as well. Overall, approximately three trillion dollars of global stock market wealth has been lost over the last two trading days. That is an all-time record, and any doubt that we have entered a new global financial crisis has now been completely eliminated. But of course the biggest news on Monday was what happened to European banks. The Brexit vote has caused financial carnage for those institutions unlike anything that we have ever seen before.
- FREE FOOD AND MONEY- Total Self Sufficiency
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- We Just Witnessed The Greatest One Day Global Stock Market Loss In World History
More stock market wealth was lost on Friday than on any other day in world history. As you will see below, global investors lost two trillion dollars on the day following the Brexit vote. And remember, this is on top of the trillions that global investors have already lost over the past 12 months. It is important to understand that the Brexit vote was not the beginning of a new crisis – it has simply accelerated a global financial crisis that started last year and that was already in the process of unfolding. As I noted on Friday, we have been waiting for “the next Lehman Brothers moment” that would really unleash fear and panic globally, and now we have it. The next six months should be absolutely fascinating to watch. According to CNBC, the total amount of money lost on global stock markets on Friday surpassed anything that we had ever seen before, and that includes the darkest days of the financial crisis of 2008.
- Six More Countries Want Referendums to Exit EU
Brussels simply went too far. They crossed the line after moving from an economic union to a political subordinate of Europe. Now, six more countries want to hold referendums to exit the EU; France, the Netherlands, Italy, Austria, Finland, and Hungary all could leave. With Hollande’s approval rating at about 11%, Merkel is lucky she is not tarred & feathered. Front National leader Marine Le Pen has pledged to hold a French referendum. If she emerges victorious in next year’s presidential elections, that means the next major player in the EU after Germany is out and there goes the EU.
- Time for a bit of project cheer? Despite Brexit turmoil, the FTSE 100 closes UP 158 points and the pound has a steady day against the dollar – but experts warn of a ‘dead cat bounce’
The markets rallied today after the pound dropped to a 31-year low against the US dollar and £40billion was wiped off the FTSE 100. The FTSE 100 closed 158 points higher as initial jitters triggered caused by the Brexit vote calmed. Sterling had a relatively calm and is currently trading against the dollar at 1.33 – higher than where it was after the pound hit its lowest level since 1985 yesterday. However, experts dubbed the increases a ‘dead cat bounce’. This is a recovery in share prices after a substantial fall, only caused by traders buying to cover their positions when the markets reach new lows.
- BREXIT BODY COUNT — Bill Holter
BREXIT: Does it signal a tidal wave of rising sentiment against the international criminal banking syndicate and its Globalist agenda, or is it merely a Trojan horse designed by the Rothschild banksters to further ensnare humanity in their NWO spider’s web? After all, Rothschild puppet George Soros was very publicly shorting stocks and going long gold in the months leading up to the Brexit vote. Did he know something the rest of us didn’t? Regardless, Bill Holter says there are dead bodies that need to be carried out as the result of the global financial chaos we saw on Friday, June 24th – and we will know a lot more about who those bodies belong to, on Monday morning.
- It’s official—Brexit’s ‘Black Friday’ sell-off was the worst ever at $2 trillion
The U.K.’s referendum to leave the European Union was a costly decision in more ways than one. Worldwide markets hemorrhaged more than $2 trillion in paper wealth on Friday, according to data from S&P Global, the worst on record. For context, that figure eclipsed the whipsaw trading sessions of the 2008 financial crisis, according to S&P analyst Howard Silverblatt. The prior one day sell-off record was $1.9 trillion back in September of 2008, Silverblatt noted. According to S&P’s Broad Market Index, combined market capitalization is currently worth nearly $42 trillion. As bourses sold off from Asia to the U.S., the fallout from Brexit culminated in the Dow Jones Industrial Average racking up a 600 point loss. Bloomberg’s Billionaires Index noted that the world’s 400 wealthiest investors lost a combined $127 billion in Friday’s market downturn.
- What Billionaire Investors Are Doing with Gold While You’re Not Watching
With each passing day, systemic risks in the financial system become greater. Smart money insiders and billionaire investors are taking note – and taking defensive actions. Mega-billionaire Carl Icahn, whose long-term track record is unrivaled, recently warned that “there will be a day of reckoning unless we get fiscal stimulus.” Icahn’s hedge fund is betting on a day of reckoning scenario. He has gone 150% net short the stock market while holding commodity-related positions to the long side.
- UK votes to leave European Union: Period of uncertainty expected – Investors rush to gold
In a stunning decision that is reverberating around the world, the people of the United Kingdom have decided to leave the European Union, the 28 member bloc and market of some 500 million that has its roots in the aftermath of the Second World War. Even more shocking perhaps is the margin of victory, the “Leave” campaign winning by 52 percent over the “Remain” side’s 48 percent. More than 17.4 million British people voted in the June 23rd referendum to exit the EU, compared to 16.1 million who cast ballots to stay the course.
- Alan Greenspan says British break from EU ‘is just the tip of the iceberg’
Former Fed Chairman Alan Greenspan told CNBC on Friday the U.K. vote to leave the European Union ushers in a period that’s even worse than the darkest days of October 1987. Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for the remain camp. “This is the worst period I recall since I’ve been in public service,” Greenspan said on “Squawk on the Street.” “There’s nothing like it, including the crisis — remember October the 19th, 1987, when the Dow went down by a record amount, 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect which is not easy to go away.”
- “The Global Economy Can No Longer Rely On Debt” – BIS Warns Central Bank Actions “Have Started To Backfire”
It’s late June which means it is time for the annual warning by the Bank of International Settlements about the growing futility of monetary policy and central bank impotence. Exactly one years ago, the BIS asked “Of What Use Is A Gun With No Bullets?”, in which the BIS said central banks are defenseless against the coming crisis. Well, it underestimated just how far the central banking “magic people” are willing to reach inside their “magic bag of tricks” to preserve the status quo: to be sure nobody at the time expected the ECB to begin buying not just corporate bonds but junk bonds too.
- UK Loses AAA Credit Rating After Brexit Vote
Ratings agency Standard and Poor’s has stripped the UK of its top AAA credit rating after the vote to leave the European Union. “In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK,” a statement from the agency read. “The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence,” S&P said. The loss of the last remaining “AAA” rating represents a fresh blow to Britain’s economic standing after the referendum.
- As the west Brexits, Russia and China sign pacts to ‘Strengthen Global Strategic Stability’
Chinese President Xi Jinping and his Russian counterpart Vladimir Putin promosed ever-closer cooperation and oversaw a series of deals on saturday, as the two countries deepen ties in the face of growing tensions with the west. In what was Putin’s fourth trip to China since Xi became president in 2013, the two men stressed their shared outlook which mirrors the countries’ converging trade, investment and geopolitical interests. “Russia and China stick to points of view which are very close to each other or are almost the same in the international arena,” Putin said. The Russian leader added that the two had discussed “strengthening together the fight against international terrorism”, the nuclear issue on the Korean peninsula, Syria, and stability in the South China Sea. Russia and China have been brought together by mutual geopolitical concerns, among them wariness of the United States.
- END OF THE EU? Germany warns FIVE more countries could leave Europe after Brexit
FIVE European countries may seek to follow Britain’s lead in leaving the EU in a Brexit domino effect, Germany has warned. France, the Netherlands, Austria, Finland and Hungary could leave. Front National leader Marine Le Pen has pledged to hold a French referendum if she emerges victorious in next year’s presidential elections. While for the past two months a Nexit has been on the cards after Dutch voters overwhelmingly rejected a Ukraine-European Union treaty. Details of Berlin’s concerns were outlined in a finance ministry strategy document.
- How a secretive elite created the EU to build a world government
As the debate over the forthcoming EU referendum gears up, it would be wise perhaps to remember how Britain was led into membership in the first place. It seems to me that most people have little idea why one of the victors of the Second World War should have become almost desperate to join this “club”. That’s a shame, because answering that question is key to understanding why the EU has gone so wrong. Most students seem to think that Britain was in dire economic straits, and that the European Economic Community – as it was then called – provided an economic engine which could revitalise our economy. Others seem to believe that after the Second World War Britain needed to recast her geopolitical position away from empire, and towards a more realistic one at the heart of Europe. Neither of these arguments, however, makes any sense at all.
- Brexit vote, UK political confusion keep world markets on edge
Britain’s vote to leave the European Union continued to reverberate through financial markets, with the pound falling to its lowest level in 31 years, despite government attempts to relieve some of the confusion about the political and economic outlook. UK finance minister George Osborne said early Monday that the British economy was strong enough to cope with the market volatility caused by last week’s “Brexit” referendum which has resulted in the biggest blow since World War Two to the European goal of forging greater unity. “Our economy is about as strong as it could be to confront the challenge our country now faces,” Osborne told reporters.
- This is what the City and Wall Street are saying about Brexit
Britain created history on Thursday night, voting to become the first country to leave the European Union, with a 52% to 48% split in votes to get out of the EU. Market reaction was insane, with assets across the board getting crushed. The pound saw its biggest single-day drop in history, European and US banking stocks crashed lower, and safe haven assets like gold took off upwards. Soon after the vote was confirmed, the Bank of England announced that it is “ready to provide more than £250bn of additional funds” to the UK’s financial system. Simply put, Brexit totally freaked participants in the global financial system out.
- Brexit vote wipes nearly 100 billion pounds off FTSE in two days; banks slump
Britain’s top share index extended the previous session’s steep losses on Monday as the country’s vote last week to leave the European Union hurled it into political and economic uncertainty, hitting banks, housebuilders and airlines hard. Some investors took refuge in firms producing gold, seen as a safe-haven asset, with Fresnillo (FRES.L) closing up 7 percent after hitting a three-year high and Randgold Resources (RRS.L) gaining 9 percent. The FTSE 100 .FTSE ended 2.6 percent lower at 5,982.20 points, taking total losses to 5.6 percent in two sessions and wiping off nearly 100 billion pounds since the referendum results early on Friday. Shares in easyJet (EZJ.L) recorded their biggest one-day percentage drop in 12 years.
- Nigel Farage: UK heading for recession regardless of Brexit
Nigel Farage has said Britain is progressing towards a “mild” recession – but insisted it was not because the UK had voted to leave the European Union. In the wake of the shock EU referendum results, hundreds of billions were wiped off the value of global stocks and the pound plunged to its lowest level against the dollar in more than 30 years. But the Ukip leader told the Sunday Telegraph: “There’s nothing new here. “I think we are going into a mild recession anyway, completely regardless of Brexit. “Our growth forecasts are down. Our public sector borrowing is still not under control at all and everyone forgets that sterling is in a bear market, declining since July 2014.”
- The magic number 7: Brexit collapse falls exactly on Shemitah date
In 2014, Christine Lagarde gave a speech on “the magic number 7.” It, along with work by Jonathan Cahn, led us to the Shemitah seven-year cycle and the Jubilee year, which the globalist elites are well aware of. What we’ve discovered since is that there is even more to the “magic number 7” than just years… it appears to correlate right down to months, weeks and days. The last major market crash occurred on September 29, 2008. On that day, the Dow Jones fell 777 points, of all numbers…. its biggest one day point drop ever. On Friday, in the aftermath of Brexit, the Dow fell over 600 points. What’s interesting about Friday’s date? It was 7 years, 7 months, 7 weeks and 7 days since September 29, 2008. And what a day Friday, June 24th was!
- They Are Putting Armed Guards On Food Trucks In Venezuela
We are watching what happens when the economy of a developed nation totally implodes. Just a few years ago, Venezuela was the wealthiest nation in all of South America, and they still have more proven oil reserves than anyone else on the entire planet including Saudi Arabia. But now people down there are so hungry and so desperate that some of them are actually hunting dogs, cats and pigeons for food. Just a few days ago, I gave a talk down at Morningside during which I warned that someday we would see armed guards on food trucks in America. After that talk was done, I went back up to my room and I came across a New York Times article which had been republished by MSN that explained that this exact thing is already happening down in Venezuela.
- Despite the Vote, the Odds Are Against Britain Leaving the EU — Paul Craig Roberts
The Brexit vote shows that a majority of the British voters understand that the UK government represents interests other than the interests of the British people. As difficult as the British know it is to hold their own government to account, they understand they have no prospect whatsoever of holding the EU government to account. During their time under the EU, the British have been reminded of historical times when law was the word of the sovereign. The propagandists who comprise the Western political and media establishments succeeded in keeping the real issues out of public discussion and presenting the leave vote as racism. However, enough of the British people resisted the brainwashing and controlled debate to grasp the real issues: sovereignty, accountable government, financial independence, freedom from involvement in Washington’s wars and conflict with Russia.
- After Brexit Shocker There Is Trouble At The Comex And The Global Financial System Is On The Brink
In the wake of the stunning Brexit outcome in Britain there is trouble at the Comex as the price of gold surges and the global financial system is now on the brink. This is why emergency central bank intervention is taking place. Victor Sperandeo: “Right now I would be a buyer of the FTSE and a buyer of the British pound. I would also stay long gold at this point. I have 85 percent of my pension fund long gold and I would be a buyer on any dips. What’s more important is that there is virtually no gold at the Comex. If the longs ask for delivery and they can’t deliver, then there will be a force majeure. Meaning, they will settle for cash and that will send the price of gold much, much higher.
- EU Debate – Oxford Union. Daniel Hannan MEP
Superb speech on Brexit. Daniel Hannan is a European Parliament member, who subsequently has now lost his job given the outcome of the referendum.
- People Around The Globe Are Still Stunned But This Is Really Going To Shock The World
On the heel of an absolutely wild trading week where we witnessed history being made, people around the globe are still stunned but this is really going to shock the world. Stephen Leeb: “A lot of things are uncertain after the Brexit vote. But there’s one thing that is certain: it sure hasn’t hurt the case for owning gold and silver. It goes beyond the mere fact that the added global uncertainty will in itself favor precious metals. If you look behind the shocking outcome of the referendum to see the frustrations that led so many in Britain to pull the lever to leave the EU, it suggests further reasons that gold and silver will benefit. At their core, those frustrations reflect a long period in which lack of real growth meant shrinking horizons and contracting lives, a state of affairs as true in the U.S. as in Britain for those outside the rarefied elite of top earners.
- Energy Expert Thinks U.S. Government Should Cut Its Strategic Oil Reserves In Half
An energy expert thinks America’s massive oil reserves should be sold off, maybe as much as half — if not all of it. In a Wednesday interview with NPR, the global head of energy analysis for Oil Price Information Service, Tom Kloza said, “You might as well be wearing bell-bottoms as having 690 million barrels in storage,” indicating his belief that storing so much oil is an antiquated policy. Kloza also said that since U.S. oil production is on the rise and imports are declining, the need for such massive reserves is antiquated. The Strategic Petroleum Reserve (SPR) was created in 1975 in response to the Arab oil embargo, which lead to a spike in oil prices and even saw Congress call for increasing fuel standards for cars.
- BRICS react cautiously to Brexit
After Britain voted to leave the 28-member European Union, members of the BRICS reacted with caution on Friday. China’s Foreign Ministry said Britain’s choice to exit the EU will have significant ramifications, although China is still keen to strengthen its ties with the UK. “The impact will be on all levels, not only on China-Britain relations. As to what kind of impact there will be, I believe all sides will calmly and conscientiously assess this,” Hua Chunying, spokesperson of the Foreign Ministry said in Beijing. “China supports the European integration process and would like to see Europe playing a positive role in international affairs. We have full confidence in the prospects for the development of China-EU ties,” she added. Beijing’s cautionary note came as other euro-sceptic leaders in the European Union called for their countries to follow suit.
- The Amount Of Stuff Being Bought, Sold And Shipped Around The U.S. Hits The Lowest Level In 6 Years
When less stuff is being bought, sold and shipped around the country with each passing month, how in the world can the U.S. economy be in “good shape”? Unlike official government statistics which are often based largely on projections, assumptions and numbers seemingly made up out of thin air, the Cass Freight index is based on real transactions conducted by real shipping companies. And what the Cass Freight Index is telling us about the state of the U.S. economy in 2016 lines up perfectly with all of the other statistics that are clearly indicating that we have now shifted into recession mode.
- Black Friday: Shocking Brexit Vote Result Causes The 9th Largest Stock Market Crash In U.S. History
Has the next Lehman Brothers moment arrived? Late Thursday night we learned that the British people had voted to leave the European Union, and this could be the “trigger event” that unleashes great financial panic all over the planet. Of course stocks have already been crashing all over the globe over the past year, but up until now we had not seen the kind of stark fear that the crash of 2008 created following the collapse of Lehman Brothers. The British people are certainly to be congratulated for choosing to leave the tyrannical EU, and if I could have voted I would have voted to “leave” as well. But just as I warned 10 days ago, choosing to leave will “throw the entire continent into a state of economic and financial chaos”. And “Black Friday” was just the beginning – the pain from this event is going to continue to be felt for months to come. The shocking outcome of the Brexit vote caught financial markets completely off guard, and the carnage that we witnessed on Friday was absolutely staggering.
- The Real Brexit “Catastrophe”: World’s 400 Richest People Lose $127 Billion
For all the scaremongering and threats of an imminent financial apocalypse should Brexit win, including dire forecasts from the likes of George Soros, the Bank of England, David Cameron (who even invoked war), and even Jacob Rothschild, something “unexpected” happened yesterday: the UK was the best performing European market following the Brexit outcome. This outcome was just as we expected three days ago for reasons that we penned in “Is Soros Wrong”, where we said “in a world in which central banks rush to devalue their currency at any means necessary just to gain a modest competitive advantage in global trade wars, a GBP collapse is precisely what the BOE should want, if it means kickstarting the UK economy.” On Friday, the market started to price it in too, and in the process revealed that the biggest sovereign losers from Brexit will not be the UK but Europe.
- Special Report on Brexit/Fantasy Meets Reality
Do not believe the mainstream media that the Brexit vote crashed the global markets. The real reason why all markets tanked is record debt levels around the world that will never be paid back. Fantasy has just met reality in the global markets, and the carnage is far from over. The fantasy of unpayable debt expanding forever is now beginning to be realized by the central banks that have been propping up the global economy since the 2008 meltdown. The central banks cannot and will not be able to stop this unfolding crash. If you are not prepared, there is little time left. Bo Polny from Gold2020Forecast.com is on for the Early Sunday Release, and he says although there may be a bounce in the stock market, and pull back in gold and silver prices, the overarching direction for stocks is down, and the overarching direction for physical gold and silver prices are up. I say the bonds which are considered an “asset” will turn into huge liabilities, and gold and silver will reclaim their proper place as money and a store of value. Physical gold and silver will be considered true assets once again. Please get ready for some very rough riding in the economy.
- Massive Defaults & Dramatic Increase in Gold-Nick Barisheff
Gold expert Nick Barisheff wrote a book titled “$10,000 Gold” in 2013. According to Barisheff, that number is even more possible today. Barisheff contends, “It’s hard to believe when I wrote the book three years ago, and I talked about the issues that would lead to $10,000 gold are still there and have gotten much worse. None of the issues have been solved, and now we are in multiple bubbles, a lot of them surrounding debt, and it keeps growing all over the world, and that’s the main correlation to the price of gold.”
- Germany Says “We Won’t Let Anyone Take Europe From Us”
Yesterday we said that in the historic fallout and unprecedented confusion over Brexit, so far only one sure winner has emerged – namely Russia, where Vladimir Putin is watching the slow-motion collapse of this latest artifical aggregation of Europen states (a quick search of failed attempts at European integration results in tens of pages of results) with great interest and willingness to pounce at any opportunity – even as all of Europe is a loser, and nobody more so than Germany, whose chancellor Merkel is now watching her legacy go down in flames as first the UK, then France (National Front), Italy (Five Star Movement), Denmark (Danish People’s Party), and Holland (Freedom Party) have all called for either a EU referendum of their own or a renegotiation of their country’s EU membership. As would be expected, the more worried and desperate Germany gets, the more ridiculous things Germany is apt to say. Case in point is what German Foreign Minister Frank-Walter Steinmeier said earlier today, when he tried to reassure onlookers that the EU would weather the shock of the British vote to leave the union as he convened crisis talks.
- George Soros: “Brexit Makes EU Disintegration Irreversible”
Just four days ago, the “big guns” when George Soros wrote a Guardian op-ed titled “The Brexit crash will make all of you poorer – be warned” in which he said that “as opinion polls on the referendum result fluctuate, I want to offer a clear set of facts, based on my six decades of experience in financial markets, to help voters understand the very real consequences of a vote to leave the EU.” We promptly countered that Soros’ set of “facts” may be clouded by his far greater equity stake in interests around Europe, and the globe, which would be drastically impacted by not only a Brexit, but by a European Union which is suddenly on the rocks. That’s precisely what happened when, as we wrote earlier, the world’s 400 richest people lost $127.4 billion Friday following the Brexit vote. Soros was among them.
- Fake Jobs Plague the U.S. Economy
“When it becomes serious, you have to lie.” — Jean-Claude Junker, President of the European Commission. Normally, I would not bring a European politician into a discussion about the U.S. economy. But in this case, European Commission President Jean-Claude Junker has “let the cat out of the bag.” In an unguarded moment, Junker let slip the working principle that guides politicians everywhere. Think about it.
- Why Wal-Mart can NOT afford to pay workers a $15 minimum wage
Can large corporations afford a $15 minimum wage better than small businesses? Despite the fact that roughly half of the minimum wage workforce is employed at businesses with fewer than 100 employees, corporations such as Wal-Mart have been used as the poster child in the case for a much higher wage floor. This claim rests on three talking points: These companies sell billions of dollars of retail goods or food products; their CEOs are typically paid a lot of money; and the higher pay will help get their employees off government programs. None of these justifications survive careful scrutiny.
- IRS admits to illegally seizing bank accounts; agrees to give the money back
It’s the stuff of libertarian dreams. The IRS admits that it wrongfully took money from innocent citizens, and it gives the money back. This is actually happening to victims of a little-known form of civil asset forfeiture carried out by the IRS on the premise of “structuring” violations. In case you didn’t know, depositing or withdrawing just under $10,000 from your bank account multiple times is viewed as suspicious and possibly criminal activity. In a victory for lawmakers working to make it harder for the government to take property from innocent Americans, the Internal Revenue Service plans to give people who have had money seized over the last six years the chance to petition to get their money back, The Daily Signal has learned. According to a GOP source, the IRS told the House Ways and Means Oversight Subcommittee that it will send letters to everyone the agency seized money from for alleged structuring violations, which involves making consistent cash transactions of just under $10,000 to avoid reporting requirements, starting in October 2009. One petition has already been granted, and others are likely to follow.
- Europe’s robots to become ‘electronic persons’ under draft plan
Europe’s growing army of robot workers could be classed as “electronic persons” and their owners liable to paying social security for them if the European Union adopts a draft plan to address the realities of a new industrial revolution. Robots are being deployed in ever-greater numbers in factories and also taking on tasks such as personal care or surgery, raising fears over unemployment, wealth inequality and alienation. Their growing intelligence, pervasiveness and autonomy requires rethinking everything from taxation to legal liability, a draft European Parliament motion, dated May 31, suggests.
- Asian millionaires now the wealthiest in the world
Your Asian counterparts are now wealthier than you are. Asian millionaires now control more wealth than their peers in North America, Europe and other regions, according to a new World Wealth Report from Capgemini, a consulting group. Asian millionaires saw their wealth jump by 9.9% in 2015, while poor performance in the equity markets in the United States and Canada slowed growth in North America to a sluggish 2.3% last year. Latin American millionaires, meanwhile, suffered a decline in net worth of 3.7%, driven by political volatility and a turbulent stock market in Brazil. Europe’s growth was steady, with a 4.8% increase led by Spain and the Netherlands.
- New Home Sales Plunge Most In 8 Months Following Sharp Downward Revisions; Median Home Price Tumbles
Despite exuberance in existing home sales, new home sales just printed 551k SAAR – missing expectations for the first time since Oct 2015 – sliding by the most since Sept 2015. With the last 3 months of exuberant increases – to 8 year highs – now revised drastically lower; and median prices tumbling to the lowest since June 2015, the picture of the US housing recovery is considerably less rosy than before… time for a rate-hike? This is what we said last month when new home sales soared to 8 year highs… Here is what drove the overall surge: a clearly “goalseeked” number resulting from a massive surge in Northeast sales, one which will be promptly revised lower next month.
- With a British adieu to EU, it’s farewell to a Fed rate hike for now
The U.S. Federal Reserve, already undecided on when next to raise interest rates, now has one more reason to wait: Britain’s vote on Thursday to leave the European Union. Not that the Fed needed another reason. Weaker-than-expected growth in U.S. jobs in recent months had already forced U.S. central bankers to put off a rate hike at their meeting last week.
- U.S. Durable-Goods Orders Fell 2.2% in May
American businesses were pulling back on purchases of new equipment even before the U.K. vote to exit the European Union rocked global financial markets, a sign of corporate caution that will likely continue to act as a brake on the economy. Overall U.S. economic growth picked up in the second quarter, boosted by stronger consumer spending. But surprisingly weak business investment has remained a concern for Federal Reserve Chairwoman Janet Yellen and others. That weakness could be exacerbated in the coming months by “Brexit”-fueled uncertainty and dollar strength. “ ‘Brexit’ will not likely help matters,” said Steve Blitz, chief economist at M Science LLC, in a note to clients.
- Oi Bankruptcy Causes Shockwaves in Brazil’s Financial System
The bankruptcy filing of Oi SA, the largest in Brazil’s history, is reverberating through the nation’s strained financial industry as investors tally the potential hit to creditors. Even as Egyptian billionaire Naguib Sawiris said he’s prepared to invest in the wireless carrier, Monday’s bankruptcy filing is likely to leave Banco do Brasil SA, Itau Unibanco Holding SA and others with steep losses on their holdings of Oi debt and trigger payments on $14 billion of derivatives contracts that are designed to pay out in an event of a default. Shares of Banco do Brasil slumped 4.5 percent.
- IMF warns the US over high poverty
The US has been warned about its high poverty rate in the International Monetary Fund’s annual assessment of the economy. The fund said about one in seven people were living in poverty and that it needed to be tackled urgently. It recommended raising the minimum wage and offering paid maternity leave to women to encourage them to work. The report also cut the country’s growth forecast for 2016 to 2.2% from a previous prediction of 2.4%. Slower global growth and weaker consumer spending were blamed. US economic growth slowed to an annual pace of 0.5% during the first three months of the year, down sharply from 1.4% in the last three months of 2015.
- Famous technical analyst now predicting crash during jubilee time period
The flurry of banksters, ex-banksters (Alan Greenspan), insiders (Soros) and billionaires all warning we are on the edge of collapse now continues with a famous technical analyst. In an interview with Business Insider, Sandy Jadeja just predicted market crashes in late August, late September and late October. Jadeja is a famous technical analyst and chief market strategist at Core Spreads. He previously made no less than four accurate predictions of market crashes based on his charts and technical analysis. His latest dates are right around the Jubilee year end-date on October 2nd, 2016.
- China debt load reaches record high as risk to economy mounts
China’s total debt rose to a record 237 per cent of gross domestic product in the first quarter, far above emerging-market counterparts, raising the risk of a financial crisis or a prolonged slowdown in growth, economists warn. Beijing has turned to massive lending to boost economic growth, bringing total net debt to Rmb163tn ($25tn) at the end of March, including both domestic and foreign borrowing, according to Financial Times calculations. Such levels of debt are much higher as a proportion of national income than in other developing economies, although they are comparable to levels in the US and the eurozone.
- US Federal Reserve should let inflation overshoot targets, IMF recommends
US policymakers should allow inflation to rise above official targets, the International Monetary Fund has recommended, as it warned that the risks of deflation still loom over the world’s largest economy. The fund has said that the Federal Reserve should “accept some modest, temporary overshooting” of its inflation goal, allowing price growth to exceed 2pc for a period. IMF staff said that this would “provide valuable insurance against the risk of disinflation”, allowing price growth to wane, and fall back towards negative territory.
- Trolling for War With Russia
Some 50 State Department officials have signed a memo calling on President Obama to launch air and missile strikes on the Damascus regime of Bashar Assad. A “judicious use of stand-off and air weapons,” they claim, “would undergird and drive a more focused and hard-nosed U.S.-led diplomatic process.” In brief, to strengthen the hand of our diplomats and show we mean business, we should start bombing and killing Syrian soldiers.
- Phantom Retail Job Growth And The Obamacare Hours Shuffle
How is it that employment in the retail sector increased by 253,000 jobs since last August, yet total aggregate hours worked has not budged an inch? The number of U.S. workers clocking just above 30 hours has fallen to a record low relative to those with work hours just below ObamaCare’s new full-time threshold. The Obamacare shift from defining full-time employment for health-care benefits from 32 hours to 30 hours is to blame. As hours worked declines, reported employment rises. I have been harping about this for years.
- Have U.S. Weather Patterns Changed Permanently? This Week Record High Temps Scorch The Southwest
This week we are going to see “life threatening” heat all across the southwest United States. In southern California, temperatures will top triple digits in many areas on Monday, and the forecast is for the mercury to reach an astounding 121 degrees in Palm Springs. Further inland, it is being projected that Phoenix and Las Vegas could both experience their highest temperatures ever early this week. Summer is just beginning and we are literally seeing things take place that we have never seen happen before. Just a few weeks ago, I wrote an article about how the weather seems to be going crazy all over America. Is this just a temporary phenomenon or have weather patterns in the United States changed permanently? Most people know that the hottest place in America is Death Valley, California. The record high for Death Valley during the month of June is 129 degrees, and it is being reported that even that record could fall this week.
- What the Heck’s Going on in Global Stocks?
In Japan, the Eurozone, Denmark, Sweden, and Switzerland, where central banks, in their infinite wisdom, have imposed negative interest rates supplemented with harebrained bond-buying schemes, bond prices have soared to where many government bonds and even some corporate bonds are trading with negative yields. Given this amount of liquidity and the free-for-all in corporate borrowing, stock markets in those countries should be booming, which had been part of the plan. Alas, they’ve gotten hammered: almost all NIRP countries’ major stock market indices have gotten shoved, some deeply, into a bear market.
- Day of Reckoning for Banks in Italy, Spain, & Portugal Kicked Down the Road (Elegantly) for 18 Months
Senior bankers in Spain and Italy can breathe a collective sigh of relief after Europe’s finance and economic ministers decided on Friday to postpone, for at least 18 months, a decision on setting a limit on the government bonds some banks can hold as eligible “risk-free” capital. It was one of four things keeping Spanish senior bankers awake at night. Now, they can sleep a little sounder. The initiative, initially proposed by the German government and supported by other fiscally hawkish governments such as Finland and the Netherlands, was intended to limit the purchase of public debt by banks, in order to break the vicious cycle of co-dependence that now exists between sovereign and bank risk.
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Latest News From June 17, 2016 to June 23, 2016:
- Gold Prices: This Catalyst to Send Gold to $2,000?
Negative interest rates (which mean you are paying a bank or government to hold your money instead of them paying you) are coming to North America and with that, gold prices could soar. So far, 2016 has already been a banner year for gold prices. In fact, gold has been the best-performing investment this year. But I think the “party is only getting started” for gold prices. Below is a chart of the 10-year U.S. Treasury. From the chart, you can easily see the yield on 10-year U.S. Treasuries has been moving in an almost perfect downward trend since 2006—that’s 10 years ago.
- Share-Buyback Announcements Plunge, Stocks Risk Getting Clocked
In 2015, S&P 500 companies bought back $569 billion of their own shares, down just a smidgen from $572 billion in 2014, according to FactSet. That’s a combined $1.14 trillion in stock repurchases. With the S&P 500 market capitalization at $18.8 trillion currently, corporate buybacks over the past two years have mopped up about 6% of the total float in dollar terms. And this has been happening year after year with increasing vehemence since 2010. While some sectors already cut back in 2015, buybacks soared 44% in the Industrial sector and 26% in the Consumer Discretionary sector. Companies buying back their own shares act purposefully as the relentless bid, with the sole goal of driving up share prices. They want to buy high! And it works.
- Elizabeth Warren’s War on the Poor
There is no American politician more closely associated with “progressive” economic causes than Massachusetts Senator Elizabeth Warren. The senator is widely regarded by the political Left as an expert on financial issues, is a self-professed champion of the “working poor,” and is a proud, finger-wagging chastiser of the 1 percent and Wall Street. Her cause is to lift up the least powerful and protect them from the most powerful. She appears to genuinely believe in this cause, and has made several policy proposals that she believes will serve it. Because of her position and the public’s association of the senator with this cause, it is assumed that the policies she proposes will in fact serve it, and that anyone who supports the same causes should get on board and support her proposed policies.
- End in Sight for Alaska’s Oil-Based Economy?
Alaska has long been one of the few U.S. states without an income tax. Thanks to its incredible bounty of natural resources, the state had more than enough cash coming in through oil company taxes and especially Prudhoe Bay production. All of that is starting to change. After a 40 year oil boom that transformed Alaska from a frozen tundra into one of the richest states in the country, the oil price crash is bringing reality back to bear. Alaska’s problems go deeper than the current oil price collapse though. Simply put, the state is getting long in the tooth – at least as far as its productive assets go. The Prudhoe Bay Oil field, once the largest such field in North America, is starting to reach the end of its life. In 1985, the Prudhoe Bay field was pumping 2 million barrels per day – roughly a quarter of the total U.S. output. Today it is pumping 500,000 barrels a day. That’s leaving the 800 mile Trans-Alaska pipeline seriously under-utilized.
- US Freight Drops to Worst May since 2010
“May is usually a relatively strong month for freight shipments, but given the high inventories with ever slower turnover rates and the decline in new production orders, May could be another soft month,” predicted Rosalyn Wilson at Cass Transportation a month ago. It has now come to pass – only worse. Freight shipments by truck and rail in the US, excluding commodities, fell 5.8% in May 2016 from the already anemic levels in May 2015, and 7.0% from May 2014, according to the Cass Freight Index, released today. It was the worst May since 2010. “This year we have failed to see the robust growth in shipments that we expect to see this time of year,” Wilson lamented.
- The man responsible for Germany’s hyperinflation nightmare has a scary lesson for modern economics
Every now and then it helps to dig through the past to think about what’s going on in the present. So let’s rewind back to 1920s Germany. Back then the country was stuck in a less-than-ideal economic situation after the suspension of the gold standard and Kaiser Wilhelm II’s failure to pass an income tax to help pay for World War I. To deal with the huge debts left over after the Great War, the president of the country’s central bank, Rudolf von Havenstein, printed up a ton of money. But that idea backfired. It led to skyrocketing hyperinflation, economic breakdown, weaker institutions, and a destabilization of German politics.
- Central bank titans warn of Brexit tremors as global recession fears surface
The two most powerful people in central banking have given their strongest warning yet on the impact of a Brexit vote, as top US bank Morgan Stanley warned that a British decision to leave could push the world towards recession. Janet Yellen, chair of the US Federal Reserve, and Mario Draghi, the European Central Bank president, have warned that a vote for Brexit could have deleterious effects for the global economy. With only two days to go before Britons head to the polls, Ms Yellen warned that a withdrawal from the EU “could have significant economic repercussions”, during her testimony to the US Senate banking committee.
- There’s No Other Way to Say It: Minimum Wage Laws Are Racist
Unfortunately, the agenda of early twentieth century leftists has proven effective; minimum wage laws are still bearing racist fruit today. Specifically, low-skilled minorities are being priced out of the job market. As small business owners are forced to pay a higher wage than their employees produce, employers are often forced to cut staff. A story published by BET in 2011 highlighted the negative effect that minimum wage hikes have on black teens. Another report, published by the American Legislative Exchange Council, unpacks several studies on the impact of minimum wage hikes. ALEC reports, “The bottom line is that someone must pay for the costs associated with an increased minimum wage. Often, because a business cannot pay these costs, they are paid for by the individuals the minimum wage is intended to help — low-skilled, undereducated individuals – as they lose out on job opportunities.” Later, the report breaks it down even further and delivers the sobering news that “a 10 percent increase in the minimum wage decreases minority employment by 3.9 percent, with the majority of the burden falling on minority youth whose employment levels will decrease by 6.6 percent.”
- Gold and Brexit
Gold is soaring. It should—and a lot—but in my view not for the reason it is. Indeed gold is insurance for uncertain times, a time that Brexit seems to represent. But insurance is an administrative cost — one must minimize its use. Moreover, insuring against Brexit might ironically be equivalent to insuring against a good event. The market believes that Brexit will lead to wealth-destruction (based on its statist views, in which those running our institutions are omniscient, when they actually are quite naive, incompetent, and incapable of understanding the concept of complexity).
- ALERT: SentimenTrader Issues Extremely Important Update On The Gold Market
With continued consolidation in the gold and silver markets, below is an extremely important update on the gold market that was just issued by SentimenTrader. From Jason Goepfert at SentimenTrader: “The Optimism Index on gold has moved above 75 for the first time since 2011, a troubling level. That’s especially true since “smart money” commercial hedgers have moved to a near-record net short position against the metal. It suffered a key reversal day as sellers rejected a new 52-week high on June 16, but those one-day patterns have been inconsistent predictors of further weakness. Even so, we consider the market to be high-risk.
- Brexit: What Is It About? — Paul Craig Roberts
If you read the presstitute media, Brexit—the referendum tomorrow on the UK’s exit from the EU— is about racism. According to the story line, angry rightwing racists of violent inclinations want to leave the EU to avoid having to accept more dark-skinned immigrants into England. Despite the constant propaganda against exit, polls indicated that more favored leaving the EU than remaining until a female member of Parliament, Jo Cox, was killed by a man that a witness said shouted “Brexit.” Cox was an opponent of leaving the EU. The UK government and presstitute media used Cox’s murder to drive home the propaganda that violent racists were behind Brexit. However, other witnesses gave a different report. The Guardian, which led with the propaganda line, did report later in its account that “Other witnesses said the attack was launched after the MP became involved in an altercation involving two men near where she held her weekly surgery.” Of course, we will never know, because Cox’s murder is too valuable of a weapon against Brexit.
- Here’s why gold could jump 10% very soon
“Gold is a reliable barometer of risk, and we believe it could rally by up to 10% should the UK vote to leave the EU,” that’s according to a flash research note from HSBC’s chief precious metals analyst James Steel sent to clients today. According to the report, if the UK votes to leave the European Union on June 23, the price of gold could rally by 10% to around $1400 an ounce as investors look to the yellow metal to provide a safe haven in times of uncertainty. What’s more, gold could also benefit from the reluctance of investors to move into sterling or even the euro following a ‘leave’ vote.
- Why Janet Ain’t Yellin’ “Higher Interest” Anymore: Jobs Worse than Expected and Far Worse than Reported
In the fall of 2015, I said the Federal Reserve would raise interest rates once in December then would not be able to fly any higher thereafter. The stock market would crash shortly after the Fed pulled up on the interest stick (which it did in what became the worst January in stock-market history), and then the Fed’s hopes of recovery would fade away. I also said that, in spite of a continually degrading economic situation around the world, the Fed would badly want to lift its interest target again in order to prove its recovery had recovered from the first lift. The fact that it would not be able to without stalling the economy completely wouldn’t mean it wouldn’t try. If it did try, however, it would find out in hindsight that any additional pull back on the stick would crash the economy into the dust of the earth.
- NY Fed Warns about Booming Subprime Mortgages, now Insured by the Government
The New York Fed just warned about the ticking mortgage subprime time bombs once again being amassed, and what happens to them when home prices decline. But unlike during the last housing bust, a large portion of these time bombs are now guaranteed by the government. Subprime mortgages are what everyone still remembers about the Financial Crisis. They blew up has home prices fell. Folks who thought they were “owners with equity” found out that they were just “renters with debt.”
- Anxiety Builds As Money Managers Near Record Long Gold Position
“There’s still a lot of fear out there,” warns one investor as the combination of event risks (e.g. Brexit, Spain, US Election) and the contagious collapse of central bank credibility has asset managers around the world piling into bonds and bullion. With negative rates now de rigeur, global developed market bond yields are pushing record lows as demand for protection from fiat debacles in precious metals (and alternative currencies) has sent money managers long position near Aug 2011’s record highs. As Fed credibility collapses (red line – inverted expectations of rate-hike-pace) so Gold (gold line) and global developed market bonds (green line) have soared tick for tick…
- Unprecedented Mainstream Media Criticism of Central Banking Bodes Ill for the Larger Economy
There is definitely considerable negativity about central banking in the mainstream media these days. This is surprising, on the one hand, because central banking provides the foundation of the current economic system, worldwide. On the other hand, such negativity may be signaling far worse. Our theory, for years has been that the central banking system is presented as something that is economically positive when, in fact, it is quite negative and responsible for the gradual collapse of Western prosperity. The mainstream media makes no real reference to the state of the West – or the world – when it comes to the larger economy. China is collapsing. The European Union is half-bankrupt. The US is in a kind of depression. But until recently the system that has created this mayhem has been treated as a kind of eternal or natural constant, like the sky or the moon or the sun. Now however, with half the West running on negative interest rates, the cracks cannot be papered over. The recent Bilderberg meetings apparently focused in large part on the economy. Disaster was predicted and preparations were made. In fact, this is how economies and economic systems “evolve.” Out of “chaos,” order.
- Switzerland withdraws longstanding application to join EU
The upper house of the Swiss parliament on Wednesday voted to invalidate its 1992 application to join the European Union, backing an earlier decision by the lower house. The vote comes just a week before Britain decides whether to leave the EU in a referendum. Twenty-seven members of the upper house, the Council of States, voted to cancel Switzerland’s longstanding EU application, versus just 13 senators against. Two abstained. In the aftermath of the vote, Switzerland will give formal notice to the EU to consider its application withdrawn, the country’s foreign minister, Didier Burkhalter, was quoted as saying by Neue Zürcher Zeitung. The original motion was introduced by the conservative Swiss People’s Party MP, Lukas Reimann. It had already received overwhelming support from legislators in the lower house of parliament in March, with 126 National Council deputies voting in favor, and 46 against.
- Propaganda, Depression And The Greatest Illusionist Of All Time
On the heels of the dollar moving higher and the gold and silver markets getting hit, today one of the greats in the business discusses today’s action, and also included are some questions and answers about the market, precious metals. By Bill Fleckenstein President Of Fleckenstein Capital. The “remain” party continued overnight, with most equity markets rallying about 1%. Naturally, the U.S. stock market joined in, though to a slightly lesser degree, with the indices just fractionally higher through midday. In the afternoon the market strengthened somewhat and with an hour to go it was about 0.3% higher (with the Nasdaq lagging)…
- IMF issues warning saying eurozone is ‘weak’ and on the brink of collapse – but STILL insists we shouldn’t vote out
The eurozone is on the brink of another financial crisis – but leaving the EU would still plunge Britain into recession, the IMF said last night. In its latest controversial intervention in the referendum campaign, the International Monetary Fund said the eurozone was in danger of being torn apart by political tensions. It said that while the single currency bloc had recovered over the past six months, the medium-term future looked ‘weak’ and that it was racked by high unemployment and bad debts. It also said the failure of the EU to tackle the refugee crisis had ‘vividly exposed political fault lines’ which threatened the entire European project.
- Credit Suisse CEO Said to Tell Staff Shorts Wrong on Capital
Credit Suisse Group AG Chief Executive Officer Tidjane Thiam said hedge funds are wrong to assume that the Swiss lender will have to raise additional capital after the shares touched a fresh all-time low last week, according to two people with knowledge of the matter. The lender’s share price is hurt by “an unusually high level of short positions,” Thiam wrote in a memo to staff last week, the people said, asking not to be identified because the contents are private. While some hedge funds are speculating on another capital increase, partly because of restructuring measures and operational losses, they’re “not correct,” Thiam wrote.
- Janet Yellen’s $200-Trillion Debt Problem
The U.S. stock market broke its losing streak on Thursday [and even more so on Monday, ed.]. After five straight losing sessions, the Dow eked out a 92-point gain. The financial media didn’t know what to say about it. So, we ended up with the typical inanities, myths, and claptrap. “Brexit panic may be your big chance to buy the S&P 500,” says a headline at Marketwatch. The article claims investors have pushed down the value of the S&P 500 in fear of a so-called “Brexit.” Next Thursday, in a national referendum, British voters will decide whether to end Britain’s 43-year membership in the European Union. But there are a number of problems with this… First, there has been no big rout in the S&P 500; it’s only slightly below its all-time high. Second, Brexit is a mystery to most U.S. investors, not a cause for alarm. Third, nobody knows which side will win – or what it will mean. Would a Brexit be good for Britain? Would it be bad for stocks? Nobody knows! Meanwhile, the Financial Times focuses on “slowing job growth and risk of Brexit…”
- Jim Sinclair-Next Crash Will Look Like Mad Max
Renowned gold and financial expert Jim Sinclair says recent dire predictions from Wall Street icons are more than a warning. They are telegraphing their trading positions. Sinclair explains, “They are preparing for what they believe. They talk their own positions. So, it’s more than a warning. They are telling you exactly what they have done. They are not out to save the man in the street. They are out to make money in a huge short position, probably in over-the-counter derivatives. . . . They’re not looking for a market tic down. They are looking for a market with a character of backing up to an open to an elevator with no elevator there. . . . We’ve got no volume, fake prices, and we’ve got the biggest money in the world short the market. We’ve also got a Fed with no tools, and now we have a Fed whose primary indicator is starting to have a heart attack. . . . When this thing comes down, it’s going to be a free fall.”
- Puerto Rico Says Talks Cease on Revised Debt Exchange Offers
Puerto Rico said confidential talks with some bondholders ended without any agreements to reduce its debt as the island edges closer toward what may be its biggest default yet. The disclosure from the commonwealth came 10 days before $2 billion of interest and principal is due on a variety of securities, which Governor Alejandro Garcia Padilla has said the island can’t pay in full. The focus now turns to the U.S. Senate, which may take up a bill next week to establish an oversight board that would restructure Puerto Rico’s $70 billion in debt. “The assumption here has to be simply that everybody thinks they’re going to get a better deal from the oversight board than they are negotiating with each other,” said Phil Fischer, head of municipal research at Bank of America Merrill Lynch in New York. “Everyone is preparing the book for the next trade, and the next trade is with the oversight board.”
- Solving Italy’s $408 Billion Bad Loan Problem 30 Cents At a Time
It will only cost 30 cents to solve Italy’s bad debt problem — 30 cents in every euro of the country’s 360 billion-euro ($408 billion) pile of loans past due, that is. That’s the difference between what Italian banks think their non-performing loans are worth and what investors are willing to pay for them. Reconciling these disparate valuations is key to clearing the gridlock in the European Union’s fourth-largest economy. Morgan Stanley’s Srikanth Sankaran says current prices on secured NPLs, i.e. those backed by collateral such as real estate, are between 20 to 30 cents on the euro, while unsecured loans can attract prices as low as 5 cents. Meanwhile, banks are marking the loans on their books for sale at around 50 to 65 cents, he said.
- Deutsche Bank’s advice to ‘invest in UK if Leave wins ballot’ after EU referendum
ONE of Europe’s biggest banks yesterday advised investing in UK companies in the event of Brexit because they would “outperform the European market”. Analysts at Deutsche Bank say a vote to leave the EU would cause panic on Europe’s stock markets in the weeks after June 23, causing them to fall by as much as 10 per cent. But the FTSE 100 will perform better, boosted by a weak pound. A note from the bank reads the UK stock market “tends to outperform during periods of GBP (pound) weakness”. It said the value of the pound could tumble by as much as another 5 per cent by the end of the year.
- ‘Brexit’ could send shock waves across U.S. and global economy
Britain’s departure from the European Union could send shock waves across the global economy and threaten more than a trillion dollars in investment and trade with the United States. International policymakers are ramping up their warnings of the dangers of a British exit – popularly known as “Brexit” — from the political and economic alliance that has united Europe for the past four decades. Voters in Britain will decide whether to leave or remain in the European Union in a referendum on Thursday, but financial market volatility has already spiked as polls show a growing desire to abandon the partnership.
- The man who accurately predicted 4 market crashes told us 3 more dates to worry about this year
The man who accurately predicted four market crashes to the exact date each time has told Business Insider about three more dates to worry about. Sandy Jadeja is a technical analyst and chief market strategist at Core Spreads. Technical analysts look at charts to pinpoint patterns in various markets and asset classes. From that, they forecast which direction prices are likely to move in. They can’t tell you the reasons why there will be a big market movement, only that there is going to be one. He now warns that the following dates spell trouble for the Dow Jones in the US that could spread to other markets. 1. Between August 26 and August 30, 2016. 2. September 26, 2016. 3. October 20, 2016. “We have interesting times ahead of us. We are dealing with issues on so many levels from economic uncertainty in the financial markets including currencies and commodities as well as the rising house prices we have seen,” said Jadeja in an interview.
- Venezuela police arrest 400 for looting in food shortage
At least 400 people have been arrested in Venezuela after rioting and looting over food shortages. Over 100 shops in the coastal town of Cumana were hit and at least one person died according to local media. Venezuela has one of the world’s highest inflation rates at 180% and people can queue for hours for subsidised food. Opposition politicians blame government mismanagement for the shortages. But the government says the shortages are part of an economic war being waged to drive President Nicolas Maduro from office.
- China Dumping More Than Treasuries as U.S. Stocks Join Fire Sale
For the past year, Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy. The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows. While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. The nation’s stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show. That far outpaces selling by investors globally in that span — total foreign ownership fell just 9 percent. Meanwhile, China’s U.S. government-bond stockpile was relatively stable, dropping roughly $26 billion, or just 2 percent.
- Why US Coal Production Collapsed to Lowest Level since 1981
It was called “king coal” because it ruled! Coal-fired power plants were the cheapest way to generate electricity, based on capital costs and operating costs. And the US has plenty of coal. In the 1980s, over 55% of electricity generation was coal-fired. By 2000, it was down to 50%. Now it’s down to just over 30%, in second place, for the first time ever, behind natural gas. In the first quarter of 2016, according to the US Energy Information Administration, coal production plunged 17% from the prior quarter, the largest quarterly drop since Q4 1984. At 173 million short tons (MMst), production was down 42% from its peak in Q3 2008. It was the lowest quarterly production since Q2 1981 when a strike crippled coal mines. But this time, there was no strike.
- Brexit Chaos to Serve as Cover for ECB Bank Bailouts
Over the course of the last few months, Brexit has become one of the biggest catch-all preemptive scapegoats of recorded human history. Even far beyond the old continent’s porous borders, politicians, central bankers, and economists are warning their respective populations to brace for a serious aftershock if the people of Britain vote to leave the EU. This is is a remarkable feat given that the UK has its own perfectly functioning currency, and as such decoupling from the EU, while bumpy, should not pose an immediate financial threat either to the UK or the EU, let alone the world at large. But try telling that to the eurocrats, politicians, and central bankers whose long cherished dream of creating a seamlessly interconnected, interdependent European superstate appears to be in the process of unraveling.
- How the Government Hides Inflation, as Housing Costs Soar
For inflation lovers, the headline numbers that the Bureau of Labor Statistics reported today was benign: The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in May, seasonally adjusted. Over the last 12 months, not seasonally adjusted, the index rose 1.0%. The Atlanta Fed’s “sticky-price” CPI – “a weighted basket of items that change price relatively slowly,” as it says – wasn’t quite that benign. It rose 2.6% for the 12-month period, the hottest increase since April 2009!
- All Signs Point to Big Financial Crash in 2016-Bill Holter
Financial writer Bill Holter says there are many signs that are signaling big trouble. Holter’s list starts with the troubled banking giant Deutsche Bank and says it is his top candidate for the next Lehman style financial meltdown. Holter explains, “It would make sense that they are the candidate because, as you know, they had a recent settlement in the gold and silver fix. So, they may get thrown under the bus. The only problem is if they get thrown under the bus, there’s going to be a bomb that blows up the whole bus.” So, can we make it out of this year without a big financial crash? Holter contends, “I don’t see how. There is the potential unrest all over the world. You have “Brexit,” and now the polls are saying that’s going to happen. That’s going to absolutely dislocate Europe. You have the U.S. election, and no matter who wins, I would say there are going to be riots. There will be riots no matter if Hillary wins or Trump wins. You will probably see rioting going into the election. You also have the tragic event in Orlando, and it’s common knowledge that ISIS says it is going to be doing this all summer long. So, you got all kinds of potential dislocations. I don’t see how we get to next year with the can being kicked down the road.”
- Right Now It’s About Keeping the Whole System from Collapsing-Andy Hoffman
Financial writer Andy Hoffman says the real endgame is upon us, and big money people like “Bond King” Bill Gross know it. Hoffman explains, “He has said some pretty alarming things that are pretty well in line with what all the other ‘big money,’ . . . people have has been saying lately. We’re talking about the biggest debt explosion in history on top of the already biggest debt edifice in history. He also is . . . talking about Japan’s endgame is to forgive their debt. Forgive means default. It means the collapse of the major Western currencies. It means the domino game, that started 40 years ago when they got rid of the gold standard, must end as all fiat currency standards end in shambles.”
- Peter Schiff Issues a Rather Large Economic Warning… “It’s Gonna Be Awful”
The interview below is vintage Schiff vs. CNBC. After being “demoted” to only doing CNBC website interviews for the last several months, something Peter hasn’t been too shy about mentioning in other interviews, within the first 22 seconds Peter manages to sneak in a jab about finally being IN studio again, jokes about how his competition at CNBC aren’t really full fledged bears, but rather “little cubs that haven’t matured into full grown bears yet,” and when asked how bad he thinks the coming financial crisis will be, Schiff responds saying, “It’s gonna be awful,” all while he’s laughing.
- The Stock Market Crash Of 2016: Stocks Have Already Crashed In 6 Of The World’s 8 Largest Economies
Over the past 12 months, stock market investors around the planet have lost trillions of dollars. Since this time last June, stocks have crashed in 6 of the world’s 8 largest economies, and stocks in the other two are down as well. The charts that you are about to see are absolutely stunning, and they are clear evidence that a new global financial crisis has already begun. Of course it is true that we are still in the early chapters of this new crisis and that there is much, much more damage to be done, but let us not minimize the carnage that we have already witnessed. In general, there have been three major waves of financial panic over the past 12 months. Late last August we saw the biggest financial shaking since the financial crisis of 2008, then in January and February there was an even bigger shaking, and now a third “wave” has begun in June. Not all areas around the globe have been affected equally by each wave, but without a doubt this new financial crisis is a global phenomenon. The charts that I am about to show you come from Trading Economics. It is an absolutely indispensable website that is packed full of useful data, and I encourage everyone to check it out. Let’s talk about China first. The Chinese economy is the second largest on the entire planet, and since this time last year Chinese stocks are down an astounding 40 percent…
- The Federal Reserve has brought back “taxation without representation”
In February 1768, a revolutionary article entitled “No taxation without representation” was published London Magazine. The article was a re-print of an impassioned speech made by Lord Camden arguing in parliament against Britain’s oppressive tax policies in the American colonies. Britain had been milking the colonists like medieval serfs. And the idea of ‘no taxation without representation’ was revolutionary, of course, because it became a rallying cry for the American Revolution. The idea was simple: colonists had no elected officials representing their interests in the British government, therefore they were being taxed without their consent. To the colonists, this was tantamount to robbery. Thomas Jefferson even included “imposing taxes without our consent” on the long list of grievances claimed against Great Britain in the Declaration of Independence. It was enough of a reason to go to war.
- The subprime mortgage is back: it’s 2008 all over again
Apparently the biggest banks in the US didn’t learn their lesson the first time around… Because a few days ago, Wells Fargo, Bank of America, and many of the usual suspects made a stunning announcement that they would start making crappy subprime loans once again! I’m sure you remember how this all blew up back in 2008. Banks spent years making the most insane loans imaginable, giving no-money-down mortgages to people with bad credit, and intentionally doing almost zero due diligence on their borrowers. With the infamous “stated income” loans, a borrower could qualify for a loan by simply writing down his/her income on the loan application, without having to show any proof whatsoever. Fraud was rampant. If you wanted to qualify for a $500,000 mortgage, all you had to do was tell your banker that you made $1 million per year. Simple. They didn’t ask, and you didn’t have to prove it. Fast forward eight years and the banks are dusting off the old playbook once again.
- China’s Jan-May outbound direct investment surges
Chinese companies continued to invest big in the overseas market in the first five months of the year, official data showed on Wednesday. China’s non-financial outbound direct investment (ODI) rose 61.9 per cent from a year earlier to 479 billion yuan ($74 billion) in January-May period, the Ministry of Commerce said on its website. Major investment destinations included ASEAN, Australia, the EU, Hong Kong SAR, Japan, Russia and the United States, which together were in receipt of $59 billion, about four fifth of the total. China had sent 181,000 labourers to work abroad since the start of the year, bringing the total number of Chinese labourers overseas to 987,000 at the end of May, down 20,000 from the same period last year. Chinese outbound direct investment will continue to grow at more than 10 percent per annum, a report from international accounting firm KPMG showed earlier this year.
- China, Russia elected to UN’s ECOSOC
China and Russia have been elected to the UN Economic and Social Council (ECOSOC), the coordinating body for the economic and social work of UN agencies and funds. China won 182 votes out of a total of 185 votes casted in the Asia Pacific group in the election held on Tuesday. Other elected ECOSOC members are North Korea, Britain, United Arab Emirates, Sweden and Norway among others. ECOSOC accredits and oversees human rights groups at the UN, deciding who can participate at the UN Human Rights Council. The winners require two thirds majority of the votes in relevant groups.
- Faber: Brexit Would be The Best Thing in British History
The European Union is an “empire that is hugely bureaucratic,” warns Marc Faber, telling CNBC that he thinks that “a Brexit would be bullish for global economic growth,” because “it would give other countries incentive to leave the badly organized EU.” The Gloom, Boom & Doom-er explained that Brexit is a risk Britain should be willing to take, and that it would not be a disaster, “on the contrary, it would be the best thing for Britain that would ever happen!” As CNBC reports, Faber defended his case by citing Switzerland, which is not a member of the EU nor the European Economic Area, but instead operates in the “single” market. That enables the Swiss to have rights in the U.K., but theoretically allows them to operate independently of both groups.
- Authoritarian Control and Mass Murder in America the Hegelian Dialectic Way
Georg Wilhelm Friedrich Hegel (1770-1831) was a highly influential German philosopher. To this day his Hegelian Dialectic is a model used by central powers of government to create a problem that causes a reaction most often in the form of a crisis or series of crises, and consolidation of concentrated power results in fewer hands as a consequence of the proposed solution put forth by the same political body that created the problem and crises in the first place. It’s been a highly effective deadly game formula of deceit that the ruling elite has perpetrated on the people to fool and entice them into blindly accepting greater centralized control and authority. This article will demonstrate how New World Order globalists and their neocon puppets in Washington have consistently employed this repeating cycle of the Hegelian Dialectic consisting of the problem (originally called thesis), reaction (anti-thesis) and solution (synthesis) during this century’s federal governmental domestic policies. Inasmuch as US Empire virtually controls all Western nations as well as nearly all Third World nations, this insidious undemocratic process is unfolding globally on the geopolitical chessboard with the ultimate objective of establishing one world government tyranny.
- Morgan Stanley fears policy makers repeating mistakes of 1930s
Policy makers are repeating the types of mistakes that prolonged the Great Depression, economists at Morgan Stanley warned Thursday. High debt, deflation, slower growth and lower yields on top of policy missteps have often been identified as the prime culprits for extending the Great Depression in the 1930s. “We think that the current macroeconomic environment has a number of significant similarities with the 1930s,” said a team led by Chetan Ahya, global co-head of economics at the firm.
- Why there’s a new kind of housing crisis
America has a housing crisis, and most Americans want policy action to address it. That’s the conclusion of an annual survey released Thursday by the MacArthur Foundation. The “crisis” is no longer defined by the layers of distress left behind after the subprime bubble burst, but about access to stable, affordable housing.
- U.S. bank earnings will feel bite of U.K. exit from EU
Earnings of large U.S. banks would be trimmed by as much as 5.6% this year and as much as 9% in 2017 if the U.K. opts to leave the European Union in a referendum to be held next week, analysts at brokerage Keefe, Bruyette & Woods said. The banks most exposed to an increase in costs and weaker capital market activity as a result of the so-called “Brexit” include Goldman Sachs Group Inc. Morgan Stanley, J.P. Morgan Chase & Co. Citigroup Inc. and Bank of America Corp. BAC, said KBW analyst Brian Kleinhanzl and team in a note dated Wednesday and distributed to media on Thursday.
- How Fascism Comes to America
I think there are really only two good reasons for having a significant amount of money: To maintain a high standard of living and to ensure your personal freedom. There are other, lesser reasons, of course, including: to prove you can do it, to compensate for failings in other things, to impress others, to leave a legacy, to help perpetuate your genes, or maybe because you just can’t think of something better to do with your time. But I’ll put aside those lesser motives, which I tend to view as psychological foibles. Basically, money gives you the freedom to do what you’d like – and when, how, and with whom you prefer to do it. Money allows you to have things and do things and can even assist you to be something you want to be. Unfortunately, money is a chimera in today’s world and will wind up savaging billions in the years to come.
- Wall Street has been rocked by an $8 billion hedge fund’s implosion
Visium Asset Management, a multibillion-dollar hedge fund, has imploded in the biggest scandal to hit the industry in years. The fund told investors of its plan to close in a letter Friday. It’s the most high-profile shutdown since authorities forced Steve Cohen’s controversial SAC Capital to close in 2013. A slew of factors — from a brewing insider-trading scandal to a contentious investment by Visium’s founder that rankled investors and staffers alike — led to Visium’s demise. On top of all of that, Visium’s flagship fund had been reporting dismal performance. Visium is selling one of its better performing funds to AllianceBernstein, it said.
- Iranian Professor: ‘OPEC Is Finished’
An Iranian professor said Tuesday that the Organization of Petroleum Exporting Countries (OPEC) is doomed, because of power struggles between Iran and Saudi Arabia that have created serious political fallout. “OPEC’s power is not waning — I’m sorry, OPEC is finished,” Hossein Askari, an Iranian professor of business at George Washington University who studies the oil industry, told USA Today. “OPEC is just powerless. They cannot agree to anything, both for political reasons and economic realities.”
- Bill Gross: Negative yields are a $10 trillion ‘supernova’ that will ‘explode’
Bond guru Bill Gross believes the growing global move toward negative yields will have dire consequences. In a tweet from his firm, Janus Capital, Gross goes back half a millennium to assert that the current situation with the world’s debt market is unprecedented and dangerous: ‘Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day’. The warning comes as yields on Japanese government bonds and German bunds hit record lows.
- $30 oil could come back later this year
The oil crash is over, right? Maybe not. At least that’s the warning from Morgan Stanley, which argues crude oil prices could spiral downward later this year to as low as $30 a barrel. It’s a counterintuitive warning, given that oil prices have actually soared by nearly 100% since mid-February. But Morgan Stanley points out that the huge rally has been driven largely by unexpected supply outages in Nigeria, Canada and elsewhere, all of which won’t last forever.
- Bilderberg Group 2016: attendee list and agenda
The secretive Bilderberg Group, which is set to meet in Dresden, Germany later this week, will discuss how to prevent Donald Trump from becoming president, the possibility of mass riots as a result of wealth inequality, the migrant crisis, as well as the United Kingdom’s vote on leaving the European Union. The influential meeting of bankers, politicians, media heads and business moguls has released its official participant list and agenda for 2016.
- Former head of Morgan Stanley indicted for evading $45 million in taxes
Morris Zukerman spent 16 years at Morgan Stanley, at various points overseeing its energy and merchant banking practices, before starting his own investment firm in the late 1980s. His firm’s partners have included ConocoPhillips, ExxonMobil and Kinder Morgan. He endowed a Harvard sociology professorship. He collected dozens of expensive paintings, including works he loaned to the Metropolitan Museum of Art. Along the way, he evaded more than $45 million in taxes, the U.S. now alleges.
- $50 Oil Might Not Last to the End of 2016
Hold off on celebrating the recent surges to more than $50 per barrel in WTI and Brent crude prices. First, consider what’s behind the increase. The simplest explanation is that supply disruption is to blame. In the past few weeks, the world has experienced a bevy of supply disruptions.
- IEA says supply glut will remain until 2021
The International Energy Agency says they are decreasing gas demands once again. Although oil markets are hopeful to a rebalance next year, the surplus will not disappear right away. They report that an annual increase in global consumption is expected to rise by 1.5 percent through 2021, down from the original of 2 percent prediction and the 2.5 percent gain over years past. This growth inhibition is driven by the low usage of fuel in the U.S. and Japan as it competes with renewable coal in power generation. They continue, “Slower generation growth, rock-bottom coal prices and robust deployment of renewables constrain gas’s ability to grow faster in today’s low-price environment.”
- What happens after Brexit?
When it comes to “Plan B” Europe is funny: it never has one. The best example is, of course, Greece most notably from an April 2013 press conference, when Mario Draghi responded to a question from Zero Hedge readers about a worst case scenario for Greece.
- The Daily Data Dive: A Tale of 3 Retail Sales Figures And A 12.5% Drop Since 2007
The Commerce Department reported that the seasonally adjusted headline number for Retail Sales rose in May by an estimated 0.5%. That figure will be revised multiple times in the months and years ahead as more data comes in and the seasonal adjustment factor is repeatedly revised until its curve reasonably approximates the actual data. In the game of Pin the Tail on The Number, Wall Street economists undershot, coming in with a consensus guess of +0.3%. The reported number was a “beat” in that regard. The actual, not seasonally adjusted number rose by $20.5 billion or 4.5% from April. The best way to tell if that’s a good number or not is to compare it with May’s performance last year. May of 2015 saw a month to month gain of $27.4 billion or 6.1%. Compared to last year, this year fell short.
- Meltdown! Central Banks Are Destroying The Global Bond Market
Japanese, German and Swiss bond yields fell to records, as government debt around the world extended its best gains in two decades, with the prospect of Britain leaving the European Union boosting demand for havens. Federal Reserve Chair Janet Yellen fueled the rally by saying Wednesday slow productivity growth and aging societies may keep interest rates at depressed levels. Fewer Fed officials expect the central bank to raise interest rates more than once this year than they did three months ago, based on projections the central bank issued. The Bank of Japan said inflation in the nation may be zero or negative, while holding monetary policy unchanged.
- GOLDMAN SACHS: This is how far we expect the pound to crash after a Brexit
Brexit could trigger a huge sell-off in the pound, sending the currency down by as much as 11% against a basket of the world’s most important currencies, according to new research from Goldman Sachs released late on Wednesday. Goldman analysts Silvia Ardagna, Robin Brooks, and Michael Cahill argue that a so-called “Lehman-type” scenario — where uncertainty in the markets increases as much as it did following the collapse of the investment bank Lehman Brothers in 2008 — would cause a huge crash in the pound sending it down to levels not seen in decades.
- After Brexit—-There’s Grexit, Spexit, Uscitaly and Portugal, Too
If there was any doubt that Brexit was “relevant” then the surges in European peripheral bond risk,despite massive bond-buying by The ECB, should send shivers up and down the status quo huggers that are shrugging the referendum decision off because “central banks will provide liquidity.” However, it’s not just The UK that EU officials need to worry about, as The Globalist notes, Germany will have to change its policies if it wants to avoid exit of other countries from the eurozone. Portugal, Italy, and Spain are all seeing bond risk explode in recent weeks…
- Will Brexit Give The US Negative Interest Rates?
One of the oddest things in this increasingly odd world is the spread of negative interest rates everywhere but here. Why, when the dollar is generally seen as the premier safe haven currency, would Japan and much of Europe have government bonds — and some corporate bonds — trading with negative yields while arguably-safer US Treasuries are positive across the entire yield curve? One answer is that the Bank of Japan and the European Central Bank are buying up all the high-quality (and increasing amounts of low-quality) debt in their territories, thus forcing down rates, while the US Fed has stopped its own bond buying program. So the supply of Treasury paper dwarfs that of German or Japanese sovereign debt. Greater supply equals lower price, and lower price equals higher yield. The other answer is that this is just one of those periodic anomalies that persist for a while and then get arbitraged away. And Brexit might be the catalyst for that phase change.
- The pound is getting annihilated
Sterling is getting crushed once again on Thursday, as currency traders react to ever increasing odds that the UK will vote to leave the European Union as well as renewed warnings from the Bank of England about the dangers of Brexit. Around 3:45 p.m. BST (10:45 a.m. ET) the pound is lower by around 1.37% against the dollar to trade at $1.4014, having tumbled steadily for around two hours in the early afternoon, as Brexit jitters intensify in the markets.
- Gold Price: USD 65,000/OZ In 5 Years?
16 June 2021 is five years from today. What will the gold price be 16 June 2021? Currencies are Worthless. As the world’s fiat paper currencies have lost 99% or more of their purchasing power in the last 100 years, we have to understand that fiat paper currencies are not a suitable unit of account to accurately measure prices. Gold is in fact a much better measuring stick for value than paper currencies. A currency doesn’t measure anything. It just has an arbitrary value placed upon it by the population using it. It’s not backed by anything and it can fail at any time. By the tale of history, we know that the unbacked fiat paper currencies used today will ultimately destruct and become worthless. All unbacked fiat currencies throughout human mankind have failed. A more accurate measurement is to measure fiat currencies in gold. If we look at the US Dollar as measured in gold, we can see that the US Dollar has utterly failed in keeping its store of value, with the value plunging about 98% in a mere 50 years.
- Free Speech Under Attack
Bill Bonner, whose Diaries we republish here, is well-known for being an equal opportunity offender – meaning that political affiliation, gender, age, or any other defining characteristics won’t save worthy targets from getting offended. As far as we are concerned, we generally try not to be unnecessarily rude to people, but occasionally giving offense is not exactly beneath us either. Some people really deserve it, after all, …which is why we often refer to modern-day central bankers as lunatics, politicians as psychopaths, governments as gangs of highway robbers waving a flag, and so forth. On one occasion we even provided a translation of Mr. Böhmermann’s “abusive criticism” of Mr. Erdogan, which fell afoul of a 19th century lèse majesté law on Germany’s statute books.
- How Fiat Money Destroys Culture
It may seem unusual that an economist would talk about culture. Usually, we talk about prices and production, quantities produced, employment, the structure of production, scarce resources, and entrepreneurship. But there are certain things that economists can say about the culture, and more precisely, that economists can say about the transformation of the culture. So what is culture? Well, to put it simply, it is the way we do things. This can include the way we eat — whether or not we dine with family members on a regular basis, for example — how we sleep, and how we use automobiles or other modes of transportation. And of course, the way we produce, consume, or accumulate capital are important aspects of the culture as well.
- Oil Is Set To Rally Beyond $50
This week’s key data for the oil and gas industry shows a small rebound in U.S. oil production after months of declines. While U.S. crude stocks continue to fall, we notice a small build in gasoline stocks as refinery runs continue to increase.
- Weak Indian Demand May Soon Impact Gold Prices
Incredible numbers this week on gold demand. Coming out of a nation that’s supposed to be the world’s top consumer — but is showing hardly any buying right now. India. Preliminary reports suggest that May was another very weak month for India’s gold demand. With Bloomberg citing familiar persons in the finance ministry as saying that May’s gold imports totaled just 31 tonnes — a drop of 51 percent from year-ago levels. That would come after India’s gold imports dropped 67 percent in April — to just 22 tonnes. Showing that gold buying is incredibly sluggish right now. In fact, sources in India’s jewelry sector were quoted as saying that there is “hardly any demand” right now in this key consuming nation. A fact that seems incredible in light of the recent strength in the gold price.
Latest News From June 10, 2016 to June 16, 2016:
- June 23, 2016: The Brexit Vote Could Change EVERYTHING And Plunge Europe Into Financial Chaos
On June 23rd, a vote will be held in the United Kingdom to determine if Britain will stay in the European Union or not. This is most commonly known as the “Brexit” vote, and that term was created by combining the words “Britain” and “exit”. If the UK votes to stay in the European Union, things over in Europe will continue on pretty much as they have been. But if the UK votes to leave, it will likely throw the entire continent into a state of economic and financial chaos. And considering how bad the European economy is already, this could be the trigger that plunges Europe into a full-blown depression. So if things will likely be much worse in the short-term if Britain leaves the EU, then it makes sense for everyone to vote to stay, right? Unfortunately, it isn’t that simple. Because this choice is not about short-term economics. Rather, the choice is about long-term freedom. The EU is a horribly anti-democratic bureaucratic monstrosity that is suffocating the life out of most of Europe a little bit more with each passing year. So if I was British, I would most definitely be voting to leave the EU.
- Halliburton & Baker Hughes get downgraded: Moody’s
Following the failed merger of Baker Hughes and Halliburton, Moody’s has made the decision to downgrade both companies’ credit ratings. Halliburton and Baker Hughes had their senior unsecured debt downgraded from A2 to Baa1. Halliburton announced that they planned to acquire Baker Hughes back in November of 2014, and HAL, therefore, took on much debt in order to finance the acquisition. Moody’s Vice President, Andrew Brooks, stated that “Debt incurred to finance its failed bid to acquire Baker Hughes Incorporated together with the negative impact on profitability and cash flow of the very weak oilfield services environment have eroded HAL’s credit metrics to levels which no longer support its A2 rating.”
- 15 Facts About The Imploding U.S. Economy That The Mainstream Media Doesn’t Want You To See
You are about to see undeniable evidence that the U.S. economy has been slowing down for quite some time. And it is vital that we focus on the facts, because all over the Internet you are going to find lots and lots of people that have opinions about what is going on with the economy. And of course the mainstream media is always trying to spin things to make Barack Obama and Hillary Clinton look good, because those that work in the mainstream media are far more liberal than the American population as a whole. It is true that I also have my own opinions, but as an attorney I learned that opinions are not any good unless you have facts to back them up. So please allow me a few moments to share with you evidence that clearly demonstrates that we have already entered a major economic slowdown.
- Where Do Matters Stand? — Paul Craig Roberts
On the eve of World War II the United States was still mired in the Great Depression and found itself facing war on two fronts with Japan and Germany. However bleak the outlook, it was nothing compared to the outlook today. Has anyone in Washington, the presstitute Western media, the EU, or NATO ever considered the consequences of constant military and propaganda provocations against Russia? Is there anyone in any responsible position anywhere in the Western world who has enough sense to ask: “What if the Russians believe us? What if we convince Russia that we are going to attack her?” The same can be asked about China.
- BRICS Bank inks strategic cooperation deal with China Construction Bank
The New Development Bank (NDB) launched by the BRICS countries on Wednesday signed a strategic cooperation agreement with China Construction Bank, the country’s second-largest lender. “The NDB, as per its mandate, is building partnerships with major banks in its member countries. Cooperation with CCB is important for us, given the key role it plays in infrastructure financing,” said NDB President Kundapur Vaman Kamath in an emailed statement to The BRICS Post. “The MoU signed today will provide our two institutions with a framework for collaboration in several areas including bond issuance, joint financing and information exchange. I look forward to a long and mutually beneficial partnership,” Kamath added. The China Construction Bank is planning to support the BRICS Bank with adequate credit lines and a commitment to invest in the new lender’s first financial green bonds. The BRICS bank has said clean energy will be part of its core focus.
- It’s 2000 All Over Again!
At this year’s Strategic Investment Conference, my good friend Mark Yusko poured cold water on whatever bullishly warm feelings the most optimistic folks may have clung to. You might think someone who manages real money would have a more enlightened view than those bearish economists. Mark, however, was hardly bullish. He listed ten plausible scenarios that could send markets down to the basement. Here I’ll focus on his “Surprise #6: Déjà vu, Welcome to #2000.2.0.” That’s right: Mark says it’s year 2000 all over again. That was when the tech bubble popped and sent us to an ugly bear market and recession. Here are four major parallels he pointed out that make it clear we are heading for another ugly recession—or are already in one without realizing it.
- How a summer of shocks threatens to bring mayhem to the markets
Two words are back on the lips of every investor in the City. “Event risk” has begun to dominate trading floor conversations, as a slew of central bank decisions, legal rulings, and political upheavals threaten to bring an end to the calm that has descended upon the markets. May is the one calm month we have before a pretty volatile JuneMarchel Alexandrovich. After a brief break from the turbulence that dominated the start of the year, when fears over the strength of the global economy and the idea of a sharp slowdown in China unnerved money managers, volatility is set to return to the scene.
- Eurozone banks hit by bad debts
Investment in the eurozone remains far below pre-crisis levels, partly due to problems in the banks, the Organisation for Economic Co-operation and Development (OECD) has said. Bad debts at the banks are making them less willing to lend. The OECD says many legacies of the area’s financial crisis are unresolved and major new problems have emerged.
- Libya claims $1.2bn damages from Goldman Sachs over trades
Libya’s $67bn national investment fund is seeking damages from Goldman Sachs, saying the bank encouraged it to make complex, money-losing investments. The Libyan Investment Authority, which runs the fund, is looking to claw back $1.2bn (£840m) it says was lost through nine disputed trades conducted in 2008. The Libyans said the trades were made under “undue influence”. Goldman said the claims were without merit and it would fight them vigorously. The trial started on Monday at the High Court in London.
- Why are so many bankers committing suicide?
Three bankers in New York, London and Siena, Italy, died within 17 months of each other in 2013-14 in what authorities deemed a series of unrelated suicides. But in each case, the victim had a connection to a burgeoning global banking scandal, leaving more questions than answers as to the circumstances surrounding their deaths. The March 6, 2013, death of David Rossi — a 51-year-old communications director at Monte dei Paschi di Siena, the world’s oldest bank — came as the institution teetered on the brink of collapse. Rossi was found dead in an alleyway beneath his third-floor office window in the 14th-century palazzo that served as the bank’s headquarters. A devastating security video shows Rossi landing on the pavement on his back, facing the building — an odd position more likely to occur when a body is pushed from a window.
- Chart of the Decade: European Banks Fleeing German Banks Like Rats From A Sinking Ship
Smaller banks often deposit funds in bigger banks. The level of banks’ deposits at other banks is a reflection of their confidence in the system as a whole. The ECB measures and is kind enough to share with us the level of bank deposits in other banks in Europe, breaking the data down by country and the Eurozone as a whole. Banks have been pulling their money out of other banks in Europe like rats deserting a sinking ship since 2012. Even the advent of QE in 2014 only slowed the stampede. European banks are still gettin’ out of Dodge.
- Bogle Says Prepare for Stocks, Bonds to Miss Historical Returns
John Bogle, the founder of Vanguard Group Inc., said investors should prepare for weaker results than stock and bond markets generated during his six-plus decades in money management. The average annual return has been around 12 percent for stocks and 5 percent for bonds during his career, Bogle, 87, said Wednesday in an interview with Bloomberg Radio. “That is not going to be true in the future,” he said. “It’s reasonable to think that stocks might return 4 to 5 percent in the next decade.” A bond portfolio, including corporate debt, could produce a yield of about 2.5 percent, he said.
- The Land Below Zero: Where Negative Interest Rates Are Normal
In Copenhagen, bicycles take undisputed priority over cars and even pedestrians. A sizzling restaurant scene has made foodie fetishes of moss, live ants, and sea cucumbers. Despite a minimum wage not far below $20 an hour and some of the world’s steepest taxes, unemployment is almost the lowest in Europe. Parents happily leave infants unattended in strollers on the sidewalk while they stop in to cafes. Clearly the usual rules tend not to apply in Denmark. So it’s no surprise that the country in recent years has added a major new entry to its sprawling repertoire of eccentricities: Since 2012 it’s been a place where you can get paid to borrow money and charged to save it. Scandinavia’s third-largest economy (the population is 5 million, and there are about as many bikes) is deep into an unprecedented experiment with negative interest rates, a monetary policy tool once viewed by mainstream economists as approaching apostasy, if not a virtual impossibility. Companies—though not yet individuals—are paying lenders for the privilege of keeping funds on deposit; homeowners, in some cases, are actually making money on mortgages.
- There Have Almost Never Been This Many Global Stocks in Decline
Fear of a possible Brexit is being manifested in equities around the world. The Bloomberg composite referendum poll tracker shows that in recent days, the share of the electorate who would vote to leave the E.U. has pulled ahead of the percentage who would vote to remain. Amid the evidence that the “Leave” camp is gaining support, global equities have come under acute pressure, with the MSCI All World Index giving back more than 4 percent over the four sessions through Tuesday. What’s startling about this particular pullback is how the number of stocks that are rising was, at the time of yesterday’s close, absolutely dwarfed by the amount in decline, observe analysts at Bespoke Investment Group.
- S. Africa Gets Reprieve From Junk as S&P Keeps Rating Unchanged
South Africa got a reprieve from a junk credit rating as S&P Global Ratings warned it could cut the nation’s debt assessment if the economy doesn’t recover. The foreign-currency rating was kept at BBB-, one level above junk, and the local-currency rating was affirmed at BBB+, S&P said in a statement on Friday. The outlook on the rating was kept at negative. The rating affirmation keeps South Africa on the same level as India and Italy. “South Africa’s weak economic growth, relative to that of peers in similar wealth categories, continues to be hurt by a combination of factors,” S&P said. The negative outlook signals “that we could lower our ratings on South Africa this year or next if policy measures do not turn the economy around,” it said. While the nation maintained its investment grade for now, economic growth forecast at the slowest pace since the 2009 recession will keep pressure on the rating. A downgrade to junk for Africa’s most-industrialized economy could prompt forced selling by some funds that are prevented by their mandate from owning junk-rated securities.
- Gerald Celente – The Next 8 Days May Change The World Forever
Today top trends forecaster Gerald Celente just that the next 8 days may change the world forever. Gerald Celente: Direct Democracy referendums, a staple in Switzerland – one of the wealthiest, most democratic, least violent, most market-oriented countries in the world – in which the public, not politicians, vote on high-profile issues… has gone British… Next Thursday, United Kingdom citizens will vote whether to stay in or exit (Brexit) the European Union. In the run-up to the referendum, world equity markets swoon and sway with polls that fluctuate between “Remain” or “Leave.”
- Brazil’s Exploding Debt-to-GDP Is Going to Become a Problem Soon
Reining in Brazil’s mammoth budget is no small feat, no matter how good you are. Cut discretionary spending, and risk blowback from an already frustrated electorate. Raise taxes, you could exacerbate the nation’s crushing recession. Privatize government companies? Beware the wrath of the unions. Shrink social security? It’ll take decades to manifest itself on the nation’s balance sheet. And that doesn’t even start to address Brazil’s massive interest tab. That’s the harsh reality facing Acting President Michel Temer, 75, who took over three weeks ago for Dilma Rousseff as she awaits an impeachment trial. His economic cabinet — dubbed the “dream team” by Goldman Sachs Group Inc. — takes over a crisis-torn country with a public-sector debt burden that climbed 9 percentage points last year alone to 67 percent of gross domestic product. And liabilities keep mounting fast. The budget gap is now the biggest among all countries in the G-20 except Saudi Arabia, equal to more than 10 percent of GDP.
- National Bank profit falls 48% on bad energy loans; boosts dividend
National Bank of Canada (NA.TO) has delivered quarterly results that look ugly but invite observers to look ahead to better times later this year. The smallest of the Big Six reported that its second-quarter profit fell to $210-million, down 48 per cent from last year. That’s the ugly part, and it stands out from the far-more encouraging results from the other big banks this quarter. The decline was expected though, after the bank announced last month that it would set aside $250-million to cover bad loans to the energy sector. Overall, provision for credit losses came to $317-million, giving National Bank the opportunity to construct two what-if scenarios that can make its results look considerably more upbeat.
- The Federal Reserve Has Created an Unprecedented Disaster for Pension Funds
When it comes to the Fed, Congress is mired in hypocrisy. The anti-regulation, de-regulation crowd on Capitol Hill shuts its mouth when it comes to the most powerful regulators of all – you and the Federal Reserve. Meanwhile, Congress goes along with the out-of-control, private government of the Fed—unaccountable to the national legislature. Moreover, your massive monetary injections scarcely led to any jobs on the ground, other than stock and bond processors.
- Next Banking Scandal Explodes in Spain
The last five years have been a bumper period for banking scams and scandals in crisis-ridden Spain. From Bankia’s doomed IPO in 2012 to the “misselling” of complex preferentes shares to “unsophisticated” retail bank customers, including children and Alzheimers sufferers, all of the scandals have had one thing in common: the banks have consistently and ruthlessly sacrificed the welfare and wealth of customers, investors, and taxpayers on the altar of short-term survival. Some commentators claim that the problem of banking instability in Spain has been put to rest in recent times, thanks chiefly to a robust, debt-fueled recovery, a tepid resurgence of the real estate sector and the transfer of the most toxic assets from banks’ balance sheets to the festering balance sheets of the nation’s bad bank, Sareb. They could not be more wrong. Despite the untold billions of euros of public funds lavished on “cleaning up” their balance sheets and the roughly €240 billion of provisions booked against bad debt since December 2007, the banks are just as weak and disaster-prone as they were four years ago.
- Negative rates stir bank mutiny
Lenders in Europe and Japan are rebelling against their central banks’ negative interest rate policies, with one big German group going so far as to weigh storing excess deposits in vaults. The move by Commerzbank to consider stashing cash in costly deposit boxes instead of keeping it with the European Central Bank came at the same time as Tokyo’s biggest financial group warned it was poised to quit the 22-member club of primary dealers for Japanese sovereign debt. The ECB and the Bank of Japan have for months imposed negative rates for holding bank deposits in an attempt to push lenders to deploy their cash in the real economy through more aggressive lending to businesses. The policy in effect taxes banks for storing excess liquidity.
- ECB Gets Clocked by the Two Biggest German Banks
On the fateful day of June 8, when the ECB began buying euro-denominated corporate bonds, some of which now trade in negative-yield absurdity, the two biggest German banks counter-attacked in a well-coordinated two-pronged move. Commerzbank, of which the German government owns nearly 16% as a consequence of the bailout during the Financial Crisis, leaked to Reuters with impeccable timing that it was considering hoarding tons (literally) of cash in its vaults rather than paying the punishment interest on deposits at the ECB. That “punishment interest,” as Germans call the negative interest the ECB charges for deposits, is -0.4%. Currently, Eurozone banks have €850 billion on deposit at the ECB, so the punishment interest would cost them €3.4 billion per year.
- “Death of the Dollar” Not Yet
Our favorite death-of-the-dollar gurus will have to remain patient for a while longer, it appears. Not that they don’t have plenty of reasons to be confident. But right now, the much maligned dollar is hot – on every level! With its top two competitors – the euro and the yen – now mired in negative-yield absurdity, investors are fleeing to greener pastures where yields are still higher. And the greenest pasture of them all with the most liquid government bond market is the US. Foreign demand at the 10-year Treasury auction on Wednesday hit a record high of 73.6%, beating the prior all-time record of 73.5% in May. And they sold at a yield of 1.702%!
- Four alternatives to holding your savings in a bank
“Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day.” Those were the words of famed bond fund manager Bill Gross. (Gross was actually the first portfolio manager inducted into the Fixed Income Analyst Society’s “Hall of Fame”. And yes, there really is a hall of fame for that.) Gross wrote that more than $10 trillion in government bonds actually have NEGATIVE yields, and that interest rates are at the lowest levels in financial history. For example, the British government just issued its lowest-yielding bonds since 1694. This has very dangerous implications.
- Introducing Europe’s Frightening New Tax Directive
A few days ago, the European Commission released details of a tax directive that will create a pan-European tax system, complete with a brand new Tax ID number for all the good citizens of Europe. The proposal also aims to increase taxes across the board if they feel that a member state (like Ireland) doesn’t charge enough tax. According to the proposal, other European countries like Ireland and Estonia “distort competition by granting favourable tax arrangements.” Apparently it’s not ‘fair’ that high-tax France and Belgium have to compete with low-tax Ireland and Estonia. So rather than the bankrupt countries getting their act together to attract business, the solution is to penalize everyone and make the entire continent less attractive. It’s genius! The directive goes on to demand more onerous reporting, attack anyone who takes legal steps to reduce what they owe, and even threaten businesses with exit taxes if they try to leave Europe. This really is like a return to the feudal system.
- John Hathaway – There Is A Deepening Shortage Of Physical Gold
On the heels of gold and silver moving higher along with the dollar and the Dow tumbling, here is a reminder from one of the greats in the business, John Hathaway, that discusses the deepening shortage of physical gold. John Hathaway: “According to the World Gold Council, the current investment allocation of world institutional portfolios to gold is a miniscule .55 percent. The flows resulting from a return of investment interest in gold for hedging purposes only, and in the best of all possible worlds (robust economic growth, world peace, etc.), would seem to have a potentially powerful impact on gold prices.”
- FTSE Loses £30bn In Value As Brexit Fears Grow
The FTSE 100 slumped below the 6,000 threshold for the first time in four months on Tuesday, as growing concern about the EU referendum caused jitters in global markets. More than £30bn was wiped off the index as it finished a fourth session in negative territory, following further opinion polls which indicate strong support for Brexit and The Sun’s decision to throw its support behind the Out campaign. In London, the FTSE fell 2% to close at 5924 – and other European markets also ended the day in the red, including the CAC 40 in France and Germany’s DAX. The STOXX 600, a pan-European index, has lost 8% since the start of June, wiping off €600bn (£475bn) off the value of its constituents.
- A Trip Down The Rabbit Hole Of Money Dropping Helicopters, Followed By Debt Repudiation
Today one of the greats in the business has given King World News permission to share a crucial piece of information with our global audience. This piece takes a trip down the rabbit hole of money dropping helicopters, followed by debt repudiation. Bill Fleckenstein: It is worth noting, however, that today is a bit of a red-letter day in the annals of monetary experimentation because it marks the beginning of Mario Draghi’s and the ECB’s buying of corporate bonds as part of their roughly 80-billion-euro-per-month (i.e., over $90 billion) monetization scheme…
- George Soros Is Preparing For Economic Collapse – Does He Know Something That You Don’t?
Why is George Soros selling stocks, buying gold and making “a series of big, bearish investments”? If things stay relatively stable like they are right now, these moves will likely cost George Soros a tremendous amount of money. But if a major financial crisis is imminent, he stands to make obscene returns. So does George Soros know something that the rest of us do not? Could it be possible that he has spent too much time reading websites such as The Economic Collapse Blog? What are we to make of all of this? The recent trading moves that Soros has made are so big and so bearish that they have even gotten the attention of the Wall Street Journal…
- Top Advisor To Sovereign Wealth Funds Warns Another Lehman Moment Is Coming As Gold & Silver Surge!
With Wall Street having one of the strangest years in 2016, today a top advisor to the most prominent sovereign wealth funds, hedge funds, and institutional funds in the world, warned King World News that another Lehman moment is coming. He also discussed what this will mean for major markets and he exposed what will be the trigger for gold and silver to skyrocket. Michael Belkin: “The world is changing. What’s happening economically in Europe is we have extremely weak banks. Let me give you two names, UniCredit and Deutsche Bank. I’m telling my clients to sell and short those stocks. UniCredit is one of the biggest, if not the biggest Italian bank. It has a huge balance sheet, not enough capital, and huge non-performing loans (20 percent). The stock is down about 50 percent on the year and they are gasping for air.
- Something Big That Always Happens Right Before The Official Start Of A Recession Has Just Happened
What you are about to see is major confirmation that a new economic downturn has already begun. Last Friday, the government released the worst jobs report in six years, and that has a lot of people really freaked out. But when you really start digging into those numbers, you quickly find that things are even worse than most analysts are suggesting. In particular, the number of temporary jobs in the United States has started to decline significantly after peaking last December. Why this is so important is because the number of temporary jobs started to decline precipitously right before the last two recessions as well.
- Global markets rattled as Brexit gains traction
Jitters over the coming EU referendum have wiped £67bn off of the FTSE 100 in the past three days, amid signs that support for Brexit has risen to the strongest levels on record. Concerns over a leave vote pushed London’s leading index down by 1.2pc, to a three-month low of 6,044.97, as nerves about the repercussions of a withdrawal from the EU sent shockwaves through global equity markets. European stocks were left battered, with the Euro Stoxx 50 shedding nearly 2pc. Worries about the global economy, in part fuelled by the belief that a Brexit vote could destabilise the wider eurozone bloc, also dampened investors’ appetites for US stocks. The flagship S&P 500 index closed down more than 0.8pc as traders fled for the perceived safety of government bonds and gold.
- Was The Gotthard Base Tunnel Opening Ceremony An Illuminati Ritual Intended To Honor Satan?
The opening ceremony of the Gotthard Base Tunnel in Switzerland featured a “goat-man” that dies, is resurrected, is worshipped and is crowned as “the king of the world”. The “goat-man” that played such a key role in this performance bore a striking resemblance to Baphomet, which in recent decades has become one of the key symbols used to represent Satan in the occult community. So could it be possible that this entire ceremony was actually an Illuminati ritual that was intended to honor Satan? Don’t pass judgment until you see the videos. On Wednesday, June 1st, the long-awaited opening ceremony of the Gotthard Base Tunnel in Switzerland finally took place. It is the longest and the deepest railroad tunnel in the entire world, and it took 17 years to build. It is 35 miles long, more than 2,000 meters deep in places, and the construction of this unprecedented tunnel cost a grand total of more than 11 billion euros. So the opening of this tunnel was quite a big deal over in Europe. Prominent European politicians such as German Chancellor Angela Merkel, Italian Prime Minister Matteo Renzi and French President Francois Hollande were all in attendance, and they were treated to an incredibly bizarre opening ceremony that cost approximately 8 million euros to produce. From Switzerland, this opening ceremony was broadcast by television all over the world, and so countless numbers of people were exposed to it.
- Why Is The Weather So Crazy All Of A Sudden?
All over the planet, global weather patterns have gone completely nuts. Just over the past few days we have seen “life threatening” heatwaves, extremely dangerous wildfires, vicious tornadoes and unprecedented flooding – and that is just in the United States. And of course this is just the continuation of a trend that stretches back to last year, when extremely weird weather created “apocalyptic-like conditions” in many areas around the world. So why is this happening? For decades, we could count on weather patterns falling within fairly predictable parameters, but now that is completely changing all of a sudden. All over the globe we are seeing things happen that we have never seen happen before, and the weather just seems to get even more crazy with each passing month.
- George Soros Sells America Short – Literally
The Wall Street Journal reported on its front page this morning that leftist billionaire and Democratic mega-donor George Soros, the convicted insider trader who “broke the Bank of England,” has stepped back into trading personally in recent months. The Journal reports that Soros is betting against America, adopting “bearish derivative positions that serve as wagers against U.S. stocks.” It is not clear at what point in the first quarter the firm took those positions; the S&P 500 was up 3% on the quarter, so Soros may be in the red so far, according to the Journal report. But on May 16, Soros’ fund disclosed that it had doubled its bet against American stocks.
- The Woman who Discovered $200 MILLION missing from E.U. Accounts
Marta Andreasen was hired as the EU’s first proper chief accountant in 2002. She was in charge of 130 staff and, surprisingly, was the first properly qualified accountant to hold the post. She did her job correctly – and in no time at all, identified that £170 million was missing or unaccounted for in the E.U. budget – that’s more than $200 million! The corrupt E.U. immediately slapped her with a disciplinary charge for “defamation” and she was suspended from her job.
- Fed’s Yellen sees rate hikes ahead, but few hints on when
Federal Reserve Chair Janet Yellen on Monday gave a largely upbeat assessment of the U.S. economic outlook and said interest rate hikes are coming but, in an omission that stood out to some investors, gave little sense of when. Overall, Yellen said, “I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones.” While last month’s jobs report, released Friday, was “disappointing,” and bears watching, policymakers will respond “only to the extent that we determine or come to the view that the data is meaningful in terms of changing our view of the medium- and longer-term economic outlook.”
- The Fed’s credibility gap is getting wider
If Fed policy was a fairy tale, the title might be “The Central Bank That Cried Wolf.” Investors have watched in bemusement as Fed officials throughout the past several years have warned that policy would change, only to back down at the slightest sign of turbulence. It now appears the market is no longer taking the Fed’s threats seriously. In a speech Monday, Fed Chair Janet Yellen gave only modest signals that she was reconsidering policy, which just a few months ago was geared for as many as four interest rate increases this year. Nevertheless, a market bracing for a high likelihood of a summer hike now is considering that “we may well not see one,” said David Rosenberg, chief economist and strategist at wealth management firm Gluskin Sheff.
- Half Of Washington DC Employers Have Cut Jobs, Hours Due To Minimum Wage Increases – And It’s Going To Get Worse
As former McDonald’s CEO Ed Rensi so eloquently explained not long ago, raising the minimum wage would wipe out thousands of entry level jobs for those who don’t have very many other options. Washington, DC is validation of Rensi’s theory. According to a report from the Employment Policies Institute, nearly half of Washington, DC employers said they have either laid off employees or reduced the hours of employees to adapt to the District of Columbia’s minimum wage hikes since 2014.
- Weak Jobs, Consumer Activity Hint at Weakening American Economy
A disappointing increase in job openings and a poor increase in consumer credit indicate Americans are increasingly struggling to make ends meet. In April, consumer credit rose just $13.4 billion, far below the $18 billion expected and less than half of March’s $28.4 billion, according to new data released by the Federal Reserve. Analyst expectations of sharply increasing consumer credit usage were based on previous data that showed strong retail sales, which is often financed by credit cards.
- Wholesale Inventories Rise Most In 10 Months, Sales Miss; Ratio Only Higher Post-Lehman
Wholesale inventories rose more than expected in April (up 0.6% MoM vs 0.1% exp) – the biggest monthly jump in 10 months – but sales disappointed (rising only 1.0% versus a 1.1% expectation). This sales growth topping inventory growth is a positive but for context the inventory-to-sales ratio remains at 1.35x – the highest level ex-Lehman on record. They just keep building inventories… even as sales remain lower YoY…
- Urban Outfitters (URBN) Stock Plunges in After-Hours Trading on Q2 Sales Trend
Urban Outfitters (URBN) stock is falling by 7.84% to $25.74 in after-hours trading on Thursday, after the apparel retailer announced its comparable store sales are declining in the fiscal 2017 second quarter, which ends next month. “Thus far during the second quarter of fiscal 2017, comparable retail segment net sales are mid single-digit negative,” the company said its quarterly report filed with the SEC. If trends continue through the quarter, comparable store sales would decline, compared with a 4% increase for the same quarter last year and a 1% increase for the fiscal 2017 first quarter ended April 30.
- Venezuela announces new plan to tackle food crisis
The Venezuelan government says it has imported thousands of tons of basic foodstuffs and will begin distributing them through communal councils directly to family homes. In Caracas the Food Minister, Rodolfo Marco Torres, said 70% of the country’s food would be supplied in this way. The Venezuelan opposition says the new system could discriminate against them. The country has been badly hit by the fall in oil prices and is suffering severe shortages in food and medicines. President Nicolas Maduro has accused private food production companies and supermarkets of hoarding food for speculation. Mr Torres said the government had purchased 115,000 tons of basic goods including rice, sugar, maize and beans.
- Bond markets hit by economic worries
The returns on British and German government debt, or bonds, have hit new all-time lows. The market has been affected by concerns about the global economic outlook. Weaker economic performance usually leads to cuts in interest rates and bond yields tend to move down in parallel. An increasing number of government bonds are now giving negative returns, less than zero. These moves have highlighted a question that is increasingly being asked in the markets: Is the world heading for another financial crisis, this time in the market for government and company debt? The new records being hit by government bonds are the results of central bank policies of very low or even negative interest rates.
- Grains Decline as U.S. Sees Global Supply Exceeding Estimates
Grain prices dropped in Chicago after the U.S. government said that supplies will be bigger than analysts expected. World wheat inventories in the 2015-16 season will reach 243 million metric tons, the U.S. Department of Agriculture said Friday in a report. That compares with analyst projections at 242.5 million, on average. Global corn reserves will be 206.5 million tons, topping the 205.5 million estimate.
- The Pension Bubble: How The Defaults Will Occur – Peter Diekmeyer
Experts worry about stock, bond and real estate market excesses. But a bubble is forming that dwarfs them all: in pension plans. Millions of Americans and Canadians who are counting on pension benefits to fund their retirements risk being severely disappointed. The hard money community has, of course, been aware of this for some time. However in recent years, even the elites have been taking notice. One such group, the International Forum of the Americas, will be holding its fourth annual pension conference in Montreal next Monday. There politicians, financiers and monetary policy officials will discuss the declining rates of return in public and private sector pension plans. The picture they will paint is increasingly grim.
- Wall Street’s Treasuries Market Bluff Exposed in Auction Retreat
When U.S. officials broached the question of more oversight in Treasuries this year, Wall Street pushed back by pointedly reminding them of the “critical role” it plays in ensuring America’s ability to borrow. Turns out, the firms might be overstating their influence. Banks known as primary dealers, which trade directly with the Federal Reserve and bid at U.S. debt auctions, have bought just 30 percent of the new securities this year, the smallest share on record, data compiled by Bloomberg show. The 23 firms — which include JPMorgan Chase & Co., Goldman Sachs Group Inc. and Deutsche Bank AG — also aren’t bidding as aggressively as they once did.
- A ‘tsunami’ is about to overwhelm the debt market
A tidal wave may be coming to the bond market, and it’s not going to be pretty. At least that’s the view of Matthew Mish, credit strategist at UBS. To Mish, the elevated rates of default in the commodity sector and high risk bonds are a harbinger of things to come for the broader debt market. “First, our quantitative framework is signaling a broader deterioration in the default outlook, with our model projecting default rates of 4.3% over the next 12 months (versus 2.6% one year prior),” Mish wrote in a note to clients on Thursday.
- New Reasons to Worry About Europe’s Banks
European banks have lost their mojo. A toxic combination of negative interest rates, comatose economies and a regulatory backdrop that might euphemistically be described as challenging is wreaking havoc with bank business models. Their collective market value has dropped by a quarter so far this year. The smoke signals emanating from the European Central Bank in recent weeks suggest regulators aren’t blind to this. Daniele Nouy, who chairs the ECB’s bank supervisory board, said earlier this week that the central bank “is aware that the low-interest-rate environment is putting pressure on the profitability of European banks.” Regulators may respond by going easier when drafting new rules.
- China’s Debt Load Is (Much) Higher Than Previously Thought, Goldman Says
Count total social financing (TSF) as another Chinese statistic of increasingly dubious value, according to analysts at Goldman Sachs Group Inc. With many investors grappling to understand the degree to which China’s economic growth has been fueled by debt, efforts to get a grip on measures of new credit creation have gained fresh urgency. To date, many have relied on the TSF invented by the Chinese authorities in 2011 as a way of capturing a larger slice of the country’s shadow banking activity, but Goldman analysts led by M.K. Tang cast fresh doubt, in a note published on Wednesday, on the measure’s ability to gauge credit creation.
- Pensions may be cut to ‘virtually nothing’ for 407,000 people
One of the biggest private pension funds in the country is almost out of money, and fresh out of options. The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said. At that time, pension benefits for about 407,000 people could be reduced to “virtually nothing,” he told workers and retirees in a letter sent Friday. In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. The proposed cuts were steep, as much as 60% for some, but it wasn’t enough. Earlier this month, the Treasury Department rejected the plan because it found that it would not actually head off insolvency. The fund could submit a new plan, but decided this week that there’s no other way to successfully save the fund and comply with the law. The cuts needed would be too severe.
- Jerome Kerviel, rogue trader, wins unfair dismissal case
The French ex-trader Jerome Kerviel, whose unauthorised transactions lost his bank €4.9bn (£3.82bn), has won a claim for unfair dismissal. A labour court said the bank, Societe Generale, had dismissed him not because of his actions, which it must have known of, but for their consequences. The court ordered the bank to pay him €450,000 (£350,000) in damages. A lawyer for the bank said it would be appealing a “scandalous” decision that ran counter to the law. Mr Kerviel, 39, served a three-year jail term after being convicted of breach of trust and fraud in October 2010. He was charged with gambling €50bn (£39bn) of Societe Generale’s money on trades without the bank’s knowledge, which nearly brought down the business.
- Here’s How George Soros’s Latest Predictions Have Played Out
George Soros, the 85-year-old billionaire who broke the Bank of England in 1992, is becoming more involved in day-to-day trading at his family office, taking a series of big, bearish bets. Soros is best known for netting $1 billion as a hedge fund manager decades ago when he and his then-chief strategist Stan Druckenmiller wagered that the U.K. would be forced to devalue the pound. His predictions haven’t always played out so well. Anticipating weakness in various global markets, his Soros Fund Management cut its publicly disclosed U.S. stock holdings by 37 percent in the first quarter while buying shares of gold miners and an exchange-traded fund tracking the price of the precious metal. Since then, the S&P 500 Index has returned 3.1 percent. Barrick Gold Corp., his largest new position disclosed in the quarter, fared better, jumping 44 percent.
- Puerto Rico’s Bonds Rally as House Nears Passage of Rescue Plan
Puerto Rico bonds are staging the longest rally in six months with the U.S. House of Representatives poised to vote on legislation to help resolve the island’s $70 billion debt crisis. The prices of some securities rose Thursday amid speculation that the House will approve a bill, known as Promesa, that empowers a federal control board to monitor the U.S. territory’s budgets and oversee any debt restructurings. The gains came after an index of Puerto Rico debt climbed for eight straight days through Wednesday, the longest winning streak since November, S&P Dow Jones indices show.
- US warns of hacking threat to interbank payment network
US regulators have warned banks about potential cyber attacks linked to the interbank messaging system. The statement came two weeks after the Federal Bureau of Investigations sent a notice cautioning US banks after the hacking of Bangladesh’s central bank. The FBI message warned of a “malicious cyber group” that had already targeted foreign banks. In February, hackers stole $81m (£56m) from Bangladesh’s account with the Federal Reserve Bank of New York. The hackers used the Bangladesh central bank’s Swift credentials to transfer money to accounts in the Philippines. Swift is the system banks use to exchange messages and transfer requests. The hackers attempted to steal nearly $1bn, but several of their requests were rejected because of irregularities.
- Chinese police require DNA for passports in Xinjiang
Police in China’s north-western region of Xinjiang are asking some residents to provide DNA samples and other biological data when applying for travel documents. People in the multi-ethnic area of Yili will have to provide the samples before being allowed to go abroad. The Chinese government is trying to crack down on periodic violence, which it blames on Islamist militants. Many Muslims in Xinjiang say they are discriminated against. They say the Chinese authorities often refuse to issue documents allowing them to travel. Most of the Uighur ethnic minority, which makes up about 45% of Xinjiang’s population, practise the Muslim faith. Over the years China’s authorities have attributed violent attacks to Uighur militants, who they say are inspired or aided by overseas terror groups. Uighur leaders have denied being behind the violence.
- Compare The Contrast Of Censored Images Showing Socialist Country Where The Elite Thrive, The Poor Starve
Most of us have seen the heartbreaking images and videos flowing out of Venezuela where food lines are hours long, basics like bread are unattainable for many and recent reports showing Venezuelans are so hungry and desperate they are hunting dogs, cats and pigeons, but that is only half the story. Due to government corruption, there are “two Venezuelas,” one where the poor are having their electricity and food rationed by the government, causing civil unrest and bringing the country to the brink of civil war, but the other “country within the country” is living high drinking champagne and vodka, eating Belgian chocolates and lobster, wearing brand name clothes, and dining in exclusive restaurants. Via Telesur, a man by the name of Agustin Otxotorena, a Basque executive living in Caracas, grew tired of constant calls from friends and relatives in Spain telling him that there was no food in Venezuela, so on May 20 he began publishing photos on Facebook of supermarkets in upscale sectors of Caracas filled with goods. What you will see below is what the ABC news bureau in Venezuela censors from their reports, images from Otxotorena’s Facebook account which when seen side by side with the tragic images of starving Venezuelans show a sickening contrast between who the government allows to starve and who doesn’t.
- Saudi Post-Oil Plan Weighs Income Tax on Expat Workers
Saudi Arabia is considering taxing millions of foreign residents as the kingdom seeks to reduce its reliance on oil revenue after the plunge in crude prices. The proposal was included in the country’s National Transformation Plan, an ambitious multi-year program released this week. But the tax element is only “an initiative that will be discussed,” Finance Minister Ibrahim al-Assaf said on Tuesday at a news conference in Jeddah. Economists said the proposal is unlikely to see the light soon because it could hamper the kingdom’s ability to attract the foreign investment it needs to revive growth hit by the oil slump. Still, raising the possibility of income tax in the blueprint — even if only on foreigners — shows the readiness of its architect, Deputy Crown Prince Mohammed bin Salman, to consider steps that past Saudi rulers have shunned. Prince Mohammed, the king’s son and second-in-line to the throne, has already cut fuel and utility subsidies and proposed reducing the public-sector wage bill. The kingdom is also joining other members of the six-nation Gulf Cooperation Council in imposing value-added taxation starting from 2018.
- The Obama Administration Could Cause the Next Big For-Profit College Collapse
The Obama administration is at risk of repeating the mistakes that led to the expensive collapse of for-profit chain Corinthian Colleges Inc. In that case, the Department of Education failed to address years of allegations that the company’s schools swindled its students and warning signs that Corinthian was facing financial difficulty. When the department finally took action by delaying the delivery of federal student aid to the schools, officials were “surprised” by the cash crunch the delay caused. That set off a series of events that culminated in Corinthian filing for bankruptcy protection less than a year later. The increasing cost to taxpayers of Corinthian’s collapse was at least $90 million as of March.
- Trail of Defaults Leads to Dark Corner of Tax-Exempt Bond Market
When Philip J. Kennedy needed financing to buy low-income housing in a wealthy Dallas suburb, he bypassed Texas agencies for a tax-exempt bond issuer 700 miles away in Gulf Breeze, Florida. Leaving the state allowed Kennedy’s non-profit American Opportunity Foundation Inc. to secure $35 million to buy Garden Gate Apartments in Plano, Texas, and a development in Fort Worth without answering questions from local authorities about AOF’s past difficulties repaying debt. Scores of non-profit organizations like AOF are required to use government-created agencies when selling bonds. In return, the agencies charge fees. At times, these conduits aren’t in the same state as the projects they’re financing, giving officials on the ground little incentive to scrutinize the deals.
- S&P 500 Record Taunts Investors Before Floor Caves In on Friday
Another run at a record ended in frustration for stock investors as the biggest selloff since mid-May erased gains for the week and dragged the S&P 500 further from a 10-month high. A week that started with the whiff of celebration as equities pulled within 1 percent of their all-time high ended with disappointment amid concerns about global growth and Britain’s referendum on the European Union. The S&P 500 dropped 0.9 percent to 2,096.07 on Friday, its worst decline since May 17, leaving it down 0.2 percent over the five days.
- Day 8 No Money on EBT Cards – Riots Next? – Get Prepared!
It interesting over the weekend I got several emails telling me about cell phones being down, internet being down, and get this, EBT cards not working and having no money associated to them. This is a concern because when the US Government has payment failures, then there is possibly something happening that the press is not telling you about. Now, we know that computers have problems and that states, counties and cities run on computers. But what is interesting is that since the beginning of 2016, The US government has had over 2,700 reports on downdetector.com showing that they have been late loading the money onto these EBT cards. Folks, we are now going on 8 days where the Government has not paid the EBT payments so that people have food. Why is this? Are we looking a possible Venezuela event taking place here in the US?
- Dire Financial Warnings and Debt Jubilee-David Morgan
Finance and economy writer David Morgan says there has been a noticeable increase in dire warnings from some of the biggest names in the investing world. Why are the elite sounding the alarm on another financial meltdown? Morgan says, “One reason is they see it’s rather imminent . . . so, could it be this year? Absolutely. I have been kind of right and wrong on this. I am right about the deterioration in the economy, the money supply and the inability to directly address the problem. Where you pinpoint it is more difficult. I said 2015 would be the year that most sleepy Americans would wake up and see the economy isn’t really recovering. . . . I think it’s going to be 2016.”
- Rise in Starving Children Puts Strain on Venezuela’s Hospitals
The increasing shortage of food and other basic products in Venezuela, on top of inflation, is now takingits toll on the health of the nation — most notably, on its malnourished children. Children frequently arrive to the San Felipe Central Hospital after having fainted from malnourishment, officials told the PanAm Post, and are given medicine to take three times a day. Mothers tell physicians they don’t have enough food in their homes, even after rationing. “Children under five months of age come in here with diarrhea and when the parents are asked what the child has been eating, they say mostly rice cream because they can’t get milk,” one hospital worker said. The same source confirmed parents blame themselves because they don’t have the salary or access to staple foods to improve the situation. “You can’t feed a five-month-old on rice,” the source said, “and it’s going to affect their long-term health.”
- A Breakdown in Old Rules Leads to a Rethink on How Global Markets Work
A standard textbook relationship that every student of economics learns in school has been flipped on its head, and it’s leading to a major rethink on the connection between bank balance sheets, exchange rates, global asset prices, and monetary policy. The prices of derivatives used for hedging currency risk are violating no-arbitrage rules, a development that points to a significant decline in global banks’ ability to intermediate capital flows from global investors, in part because of new regulations that have been introduced in recent years. That decline in intermediation capacity appears to have heightened the sensitivity of exchange rates and global asset prices to monetary policy since the crisis, and helps explain some of the unusual gyrations witnessed recently in markets — like extreme moves in the so-called cross-currency basis, which according to traditional theory should be non-existent, and mostly was before the crisis that began in 2007.
- Whistle-Blower Said to Aid SEC in Deutsche Bank Bond Probe
The U.S. Securities and Exchange Commission is being helped by a whistle-blower in an investigation of Deutsche Bank AG’s post-crisis mortgage-trading business, according to people with knowledge of the situation. The SEC received a whistle-blower complaint alleging that the bank inflated the value of mortgage bonds on its books and masked losses around 2013, said the people, who asked not to be identified because the matter is confidential. The SEC is probing how the bank valued government-backed mortgage bonds known as Agency pass-through securities that it amassed after the 2007 U.S. housing crisis.
- Bond yields in UK and Germany fall to record low
The return on benchmark UK government bonds has fallen to a record low as investors move in to safer assets on concerns about the global economy. The yield on the UK’s 10-year gilt dropped below 1.25% for the first time. The yield on the German equivalent also sank to a record low. More buyers cause bond values to rise and yields to fall, hitting annuity rates, pension fund income, and debts. Analysts see it as a “pessimistic” sign. “The low yield on government bonds paints a pretty pessimistic picture of the global economy, and suggests we are set for an extended period of low or negative inflation, and weak economic performance,” said Hargreaves Lansdown analyst Laith Khalaf.
- Britain’s property market is going to have a flash crash this summer
Britain’s property prices are going to fall for the first time since 2012 and London’s house prices will be affected the most, says the Royal Institution of Chartered Surveyors. Buyers are cautious due to the uncertainty surrounding the UK’s referendum on European Union membership on June 23. RIC’s chief economist Simon Rubinsohn said in his latest report that the new stamp duty tax imposed by the government on April 1 this year also has some bearing on the lack of demand and therefore the pulldown in prices. But “there is not at this point a sense that a fundamental shift is taking place in the market,” he added, which shows how property prices are likely to experience a flash crash — a short-term burst of cratering prices. This might be a relief for people looking to buy in London as the price drop is going to be the greatest in the capital.
- EU Referendum … The Plan to DESTROY the UK
The UK is being set up the final destruction of the NATION STATE! On Thursday 23rd June 2016, the outcome of the EU referendum will be manipulated … but perhaps not in the way many expect! At the recent AV7 Conference, Ian R Crane presented the magnitude of deceit & deception being perpetrated by both UK & EU politicians and names those specifically tasked with bringing about the Final Destruction of ALL European Nation States.
- The Untold Story Behind Saudi Arabia’s 41-Year U.S. Debt Secret
Failure was not an option. It was July 1974. A steady predawn drizzle had given way to overcast skies when William Simon, newly appointed U.S. Treasury secretary, and his deputy, Gerry Parsky, stepped onto an 8 a.m. flight from Andrews Air Force Base. On board, the mood was tense. That year, the oil crisis had hit home. An embargo by OPEC’s Arab nations—payback for U.S. military aid to the Israelis during the Yom Kippur War—quadrupled oil prices. Inflation soared, the stock market crashed, and the U.S. economy was in a tailspin.
- Bank of England in preparations for potential Brexit
The Bank of England will draw on lessons learned from the Scottish referendum and the global financial crisis as it steps up its preparations for a possible decision by Britain to leave the EU on 23 June. The first of three special funding operations by Threadneedle Street will be launched on 14 June to ensure the UK’s commercial banks have the necessary cash to cope with any turmoil caused by the uncertainty surrounding a Brexit vote. The move would just be the start of action by the Bank, which has drawn up a plan ready for use if necessary on 24 June if the UK votes to leave the EU.
- Arrant Star Trek Socialism
In spite of the fact that Marx expressed nothing but disdain for his Utopian socialist predecessors such as Henri Saint-Simon and Auguste Comte, variants of Utopian socialism evidently live on. The latest iteration of the socialist dream is firmly focused on the capabilities of one of the countless fruits of free market capitalism, namely robots. It is quite ironic that something that would never have come into existence in a socialist system is now supposed to hasten the introduction of same – and of course, this time, it will be done right! The idea is basically this: as robots are becoming more sophisticated, more and more labor that is widely regarded as drudgery will become obsolete. Eventually, robots will take over the production of all the goods we need and want, and human workers will be free to pursue art, philosophy, or whatever else strikes their fancy.
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Will Donald Trump be the next president?
The Elite and God.
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Latest News From June 3, 2016 to June 9, 2016:
- 8 Lessons That We Can Learn From The Epic Economic Meltdown In Venezuela
We are watching an entire nation collapse right in front of our eyes. As you read this article, there are severe shortages of just about anything you can imagine in Venezuela. That includes food, toilet paper, medicine, electricity and even Coca-Cola. All over the country, people are standing in extremely long lines for hours on end just hoping that they will be able to purchase some provisions for their hungry families. At times when there hasn’t been anything for the people that have waited in those long lines, full-blown riots have broken out. All of this is happening even though Venezuela has not been hit by a war, a major natural disaster, a terror attack, an EMP burst or any other type of significant “black swan” event. When debt spirals out of control, currency manipulation goes too far and government interference reaches ridiculous extremes, this is what can happen to an economy. The following are 8 lessons that we can learn from the epic economic meltdown in Venezuela…
- US Commercial Bankruptcies Soar (despite Rosy Scenario)
The post-February euphoria in the US bond market has been a sight to behold, stirred up by NIRP and QE in Japan and the Eurozone. The ECB is beginning to buy corporate bonds, including euro-denominated corporate bonds issued by US companies. This is pushing larger amounts of corporate euro bonds into the negative-yield absurdity. And it has opened all kinds of credit doors in the US. But beneath the market euphoria, reality continues to plod forward. Standard & Poor’s reported that among the companies it rates there were 12 defaults in May, which pushed its speculative-grade corporate default rate up to 4.1%, the highest since December 2010 when it was recovering from the Financial Crisis.
- Helicopter Money Drops on Europe, But Not for ‘Normal’ Folks
Money for nothing, for everyone: This is supposedly the next stage of the treatment program for today’s debt-addicted economic system. Milton Friedman’s hypothetical scenario of giving every citizen direct money transfers in a desperate bid to stoke inflation is gaining traction with growing legions of mainstream economists. In their theory-addled brains, a massive one-off injection of central bank-conjured money into people’s bank accounts would do wonders for the real economy — in particular a terminally stagnating one like Europe’s. Rather than creating asset price inflation, as QE has done, it would fuel consumer price inflation. This is seen as the solution to the recently created and now unpayable mountain of debt: the central bank would simply erode it away via inflation.
- This financial bubble is 8 times bigger than the 2008 subprime crisis
On July 1, 2005, the Chairman of then President George W. Bush’s Council of Economic Advisors told a reporter from CNBC that, “We’ve never had a decline in house prices on a nationwide basis. So, what I think is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.” His name was Ben Bernanke. And within a year he would become Chairman of the Federal Reserve. Of course, we now know that he was dead wrong. The housing market crashed and dragged the US economy with it. And Bernanke spent his entire tenure as Fed chairman dealing with the consequences. One of the chief culprits of this debacle was the collapse of the sub-prime bubble.
- DEUTSCHE BANK: The ECB is on course to destroy the eurozone
The European Central Bank risks tearing the eurozone apart for the sake “of short-term financial stability,” and the ECB needs to reverse course before it is too late, says Deutsche Bank. A new note from the bank’s group chief economist, David Folkerts-Landau, says that the ECB has gone badly off course and needs to correct itself before it makes some “catastrophic” mistakes. That correction should come, Deutsche argues, in the form of abandoning the bank’s negative interest rate policy (NIRP) and stopping the mass bond-buying it has undertaken in recent years. President Mario Draghi and other senior staff at the ECB are already causing the central bank to lose credibility in both the markets and with the general public, and is hurting savers, says the bank. Here’s the quote (emphasis ours): Already it is clear that lower and lower interest rates and ever larger purchases are confronting the law of decreasing returns. What is more, the ECB has lost credibility within markets and more worryingly among the public.
- Andrew Maguire – This Will Send The Price Of Gold Hurtling Into The $1,400s
On the heels of Friday’s big dollar decline and surge in the price of gold and silver, today whistleblower and London metals trader Andrew Maguire spoke with King World News about what will send the price of gold hurtling into the $1,400s! Andrew Maguire: “Eric, in my opinion no one knows the true, undiluted supply/demand price of gold. But what we can be sure of is that is substantially above the current paper price. Once gold breaks out above $1,308, and large short stops are triggered, I see a very fast move in the $1,400s, which in itself…
- Japan Is First To Panic; Won’t Be The Last
The most widely-reported result of the recent G-7 meeting was Japan’s attempt to convince the other major economies to admit that a crisis is imminent and take appropriately radical steps. The response seems to have been a bunch of blank stares. As India’s Business Standard noted: “G7 pact offers minimal cover for Abenomics reset. A Group of Seven compromise offers minimal cover for Shinzo Abe. The Japanese prime minister’s plan to revitalize the world’s third-largest economy needs fresh impetus. Abe didn’t get as much international backing as he might have liked from hosting the rich nations’ club. But, the summit communique can, just about, be spun his way. Abe’s counterparts, understandably, do not share his view that the world risks another Lehman Brothers-style financial crisis. That is important because Abe has inexplicably committed to raising the country’s sales tax next April, a surefire way to choke off recovery – unless a shock of this scale emerges.”
- What Makes this Jobs Report so Truly Ugly?
It would have been nice if we’d been correct to the minute, but we were two months early, and therefore wrong, when we wrote on March 30, If This Plays Out, Friday Will Get Ugly. But it did play out today. At the time, we suspected that the March jobs report, released in early April, would be a debacle. We based this on an analysis of the divergence over time between the reports issued by payroll processing company ADP and the jobs reports issued by the Bureau of Labor Statistics. That divergence had been going on for months. Eventually it reverts to the mean. We postulated that March would be that month. Instead, it happened two months behind schedule, so to speak, as today’s jobs report was precisely that sort of debacle.
- Here’s proof that the US dollar is insanely overvalued
Shocking. Astonishing. Jaw dropping. There’s just no other way to describe how cheap South Africa is right now. Between the worldwide decline in commodities prices, and a major crisis of confidence in the national government here, the local currency (South African rand) remains at the lowest level it’s been… ever. And that’s made nearly EVERYTHING here dirt cheap if you’re spending foreign currency… especially US dollars. Just doing something simple like eating out at a restaurant or going to the grocery store can be startling. Once you do the math and convert the prices back to US dollars, it almost seems like you’re missing a zero. This also carries over into many asset prices, including certain areas in the property market.
- Employment Lies — Paul Craig Roberts
June 3, 2016. Today the Bureau of Labor Statistics announced that the US economy only created 38,000 new jobs in May and revised down by 59,000 jobs the previously reported gains in March and April. Yet the BLS reported that the unemployment rate fell from 5.0 to 4.7 percent, a figure generally regarded as full employment. The May jobs increase only covers a small fraction of the monthly growth in the labor force and, therefore, cannot account for the drop in unemployment. Moreover, the BLS reported that the labor force participation rate fell by 0.2 percentage points, bringing the decline to 0.4 percentage points over the past two months. Normally, a strong labor market, such as one represented by a 4.7% unemployment rate, causes an increase in the labor force participation rate. The question becomes: How real is the 4.7% rate of unemployment? The answer is: Not at all.
- Will Silver Outperform Gold? And Why John Hathaway Believes The Gold Price Will Rise
With continued uncertainty in global markets, many wonder, will silver outperform gold? Also, why John Hathaway believes the gold price will rise. Japan led world markets lower last night, losing 2%, but that decline, as well as small changes elsewhere, were of no consequence. The early going here saw a modest amount of weakness, but that dip was (again) bought as folks jockeyed for position in front of tomorrow’s nonfarm payroll report. On a related note, the ADP report hit the magic estimated number on the button at 173,000 jobs created…
- BREAKING: Gerald Celente Just Issued One Of His Most Prescient Trend Alerts Of 2016!
Today top trends forecaster Gerald Celente just issued one of his most important Trend Alerts of 2016, with exclusive bonus material only available through King World News! Oil is on a tear. Gold is shining, silver is surging and the dollar is tumbling. Over the last few weeks, Federal Reserve Chair Janet Yellen and fellow Fed members bombarded the business media with the refrain that America’s economy was strong, and to expect an interest-rate rise “in the coming months.” The Street bought it and the markets believed it. Gold prices, for example, on a 20 percent upward streak since the new year, sharply dove on the pending interest-rate-hike hype. Since the great criticism from the “investor” world is that gold yields no interest, with interest rates among developed nations in negative or near-low territory, and holding cash yields nothing, holding gold was deemed safer than holding cash. But with the Fed signaling rising rates, that rationale for owning gold no longer held and a selling wave ensued.
- This Could Soon Lead to the Collapse of the U.S. Dollar
“I did not have sexual relations with that woman.” “Read my lips: no new taxes.” “We were not trading arms for hostages.” Politicians are professional liars. They do it every day. And they usually do it without any consequences. I’d bet that Bill Clinton, George H. W. Bush, and Ronald Reagan, who told the three lies quoted above, didn’t think twice about them. But the lies would all come back to haunt and humble them. Those words cost Bush senior his reelection. Congress nearly impeached Clinton. And the Iran-Contra scandal forced Reagan to apologize on national TV. The Iran-Contra scandal showed that a strange series of events in a small, obscure, and impoverished country could come back to humiliate the most powerful person in the world.
- Warren Resources Files For Bankruptcy
Warren Resources Inc, an energy production company, filed for Chapter 11 bankruptcy protection on Thursday. According to a court filing, the company held operations in both California and Pennsylvania. A major slump in oil prices has pressed a number of energy production companies to file bankruptcy since early 2015. Nearly a third of production companies could be at risk of bankruptcy if prices don’t increase, says one study by the consulting firm, Deloitte.
- Hercules Offshore files for bankruptcy, again
After emerging from bankruptcy in November, Hercules Offshore has a plan to sell drilling rigs while filling bankruptcy for the second time since last summer. The demand for their rigs has dropped since the waters have suddenly become overpopulated with drilling equipment. The plan includes slowly halting production by selling the remaining working rigs to pay its shareholders $12.5 million and distribute cash flow from the sales to their creditors. A.P Moeller-Maersk group is interested in their Hercules Highlander, designed for harsh environments. A lot of the older designs rest on the sea floor, making them unable to go deeper than the shallow waters of the Gulf of Mexico.
- Worst Jobs Report In Nearly 6 Years – 102 Million Working Age Americans Do Not Have Jobs
This is exactly what we have been expecting to happen. On Friday, the Bureau of Labor Statistics announced that the U.S. economy only added 38,000 jobs in May. This was way below the 158,000 jobs that analysts were projecting, and it is also way below what is needed just to keep up with population growth. In addition, the number of jobs created in April was revised down by 37,000 and the number of jobs created in March was revised down by 22,000. This was the worst jobs report in almost six years, and the consensus on Wall Street is that it was an unmitigated disaster.
- Barack Obama Warns Americans ‘To Be Prepared For A Disaster’
When Barack Obama speaks to the public, it is very rare that he does so without a specific purpose in mind. So why is he urging Americans “to be prepared for a disaster” all of a sudden? On May 31, Obama took time out of his extremely busy schedule to deliver an address at the FEMA National Response Coordination Center in Washington. During his speech, he stressed that every American is responsible for preparing for disasters, and that includes “having an evacuation plan” and “having a fully stocked disaster supply kit”. These are basic steps that I have been encouraging people to do for years, but if they won’t listen to me, perhaps they will listen to the man currently residing in the White House.
- Dollar Bubble: The Three Reasons The US Dollar Will Soon Crash
The Dollar Vigilante’s Senior Analyst, Ed Bugos, is a genius… but he’s also somewhat of a recluse. While we have gotten access to his incredible written insights for the last six years in The Dollar Vigilante newsletter, he has always shied away from the public spotlight. Until now! Ed has decided that we are at such a crucial point in history that he is going to come out of his shell and speak more publicly about the current state of affairs in finance, money and economics. He spoke publicly for the first time at our TDV Internationalization and Investment Summit (you can see all the video presentations here) in Acapulco in February. And, I had the opportunity to sit down with him in Acapulco recently to discuss the three myths about the US dollar that most people don’t realize… yet. In this interview he talks extensively on what the great majority of the market is missing when it comes to the dollar. He believes the US dollar is currently the biggest bubble in the world and is about to pop.
- Record Low 4.7% Unemployment Rate Hides Ominous Signs
The May 2016 unemployment report on the surface sounds like great news. The unemployment rate dropped to an astoundingly low 4.7%. This is a -0.3 percentage point drop from last month and a level not seen since November 2007. Yet the statistics which make up the unemployment rate actually shows something terrible. The unemployment rate dropped because 664,000 people dropped out of the labor force with almost half a million no longer counted as unemployed. The labor participation rate dropped by -0.2 percentage points while the civilian participation rate did not change. One month is not a pattern , yet seeing record low participation rates is not the way to lower the unemployment rate. Many other economic indicators show a stalled economy and the unemployment appears to be catching up with the other first quarter bad economic news.
- What the EIA Doesn’t Tell Us When Comparing US Output to that of Russia & Saudi Arabia
On Monday of last week, the U.S. Energy Information Administration posted an article on their daily blog (Today in Energy) titled “United States remains largest producer of petroleum and natural gas hydrocarbons”.. The article featured a graph of our production of gas and oil vis a vis that of Russia and Saudi Arabia and went on to tell the familiar story about how fracking made it possible for our output of gas and oil to pass that of Russia in 2012, and that, as the headline indicates, we’re still on top. As the week progressed, copies of the graphic from that post started showing up on other sites around the web, some to highlight the “we’re number one” aspect that it showed, some to disparage the Saudis, who by the looks of that graph, barely come close.
- Housing Market Hyper-Bubble-Fabian Calvo
Real estate expert Fabian Calvo says cheap money flooding into the housing market means we are nearing the end of the road for the current housing boom. Calvo explains, “What they have come up with now, through the Obama Administration and many other projects, is they have these down payment assistance programs, which is the federal government giving money to these local agencies. So, in essence, it is a no-money-down loan to fuel this housing bubble, which is really starting to verge on a ‘hyper-bubble’ like we see in the stock market today. It’s amazing to see what is happening and see it all repeat again. It’s going to spill over into this election year, and we will continue to see prices go up. We have these cheap interest rates and cheap money that has no value that is creating this artificial boom. . . . We are at the last and final stage of this current housing cycle, and that’s where the prices will take off exponentially as will the access to cheap money.”
- Reporting on Trump Continues to be Unfair, Economy Getting Worse and South China Sea War Drums
It was trash Trump week as far as the mainstream media (MSM) is concerned. It covered the Trump University lawsuit wall to wall but not a peep about the ongoing criminal investigation on Hillary Clinton and her unprotected private server. One of the big stories ignored this week by the MSM is former Bill Clinton advisor and pollster Doug Schoen penning a Wall Street Journal Op-Ed piece titled “Clinton Might not be the Nominee.” The title says it all, and yet the MSM ignored this huge red flag raised by a top Democratic insider about Hillary Clinton’s viability as a Presidential candidate for the Democratic Party.
- The Federal Reserve’s $4.3 trillion ticking time bomb
The Federal Reserve has a big problem if it wants to raise rates again. It will have to pay U.S. and foreign banks enormous sums of money instead of U.S. taxpayers. Not only would the Fed likely draw the ire of Congress, but it could also become a target of the next U.S. president—be it Clinton or Trump. That’s because the gangbuster profits of $90 billion (plus) per year that the Fed remits to the Treasury could easily dwindle to zero. According to several leading economists, it’s also possible that the Fed will become technically insolvent (though it always has the power to print its way out of such a disastrous state).
- Miami’s Condo Frenzy Ends With Inventory Piling Up in New Towers
Miami’s crop of new condo towers, built with big deposits from Latin American buyers and lots of marketing glitz, are opening with many owners heading for the exits. A third of the units in some newly built high-rises are back on the market, though most are listed for more than their owners paid in the pre-construction phase. At the current sales pace, it would take 29 months to sell the 3,397 condominiums available in the downtown area, according to South Florida development tracker CraneSpotters.com.
- How and Why You Should Stop Thinking in Dollars and Start Thinking in Gold
Whether intuitively or analytically, we all know that the dollar is not such a great form of money. That’s putting it lightly though. The dollar is a terrible form of money when you take a closer look. Those who have lived longer on this earth tend to grasp this reality more clearly. Like trying to walk up a downward-moving escalator, the momentum of a falling dollar is always against you. This becomes clearer when engaging in economic planning. Whether it’s starting a business, making an investment, saving for retirement, putting something away for a rainy day, or simply making ends meet on a week to week basis, all of us have to work against a falling dollar (or fill in the blank with your fiat currency of choice.) If that’s true, why do we keep using it?
- A Worrisome Pileup of $100 Million Homes
One of the latest symbols of the overinflated luxury housing market is a pink mansion perched above the Mediterranean on the French Riviera. The 13,000-square-foot property, built and owned by the fashion magnate Pierre Cardin, is composed of giant terra cotta orbs arranged in a sprawling hive. The home’s name befits its price. “Le Palais Bulles,” or “the Bubble Palace,” is being offered for sale at approximately $450 million.
- China Buying Sparks Bitcoin Surge
Chinese investors are pumping up bitcoin again, sending prices up nearly 16% in the past four days, just two years after the country was at the center of a boom and bust in the crypto-currency. The four-day surge in bitcoin since Friday has added $1.2 billion in market capitalization for all bitcoin in circulation, according to data from blockchain.info. On Monday, prices moved up as high as $525.49 per bitcoin, though that’s still well below the all-time high of about $1,151 in November 2013.
- China Is the Biggest Short…Ever!
Over the next 2 decades, there will be an average of 7.5 million fewer 0-55yr/old Chinese every year vs. an average annual increase of 9.5 million 55+yr/olds. And the wealthy minority of the elderly have stashed their reserves in a whole lot of expensive, vacant real estate that they intend to pass along (rent or sell) to the declining young population. What could go wrong since housing prices only go up…right!?! China, a story of a massive population and population growth. As the adult population growth began to wane, debt was substituted for the waning growth. Population growth turned to outright depopulation among the young, while all remaining population growth was among the “pig through the python” elderly.
- Personal Spending Spikes Most Since Aug 2009 As Fuel Costs Surge
Having disappointed in March (just +0.1% MoM), expectations for April’s personal spending were sky high at +0.7% MoM, despite expectations of a 0.4% rise in incomes. Analysts were not disappointed as the headline spending print was a 7-year high +1.0% MoM spike driven by a 3.8% MoM surge in Energy spending. With income rising as expected at 0.4% MoM, and thanks to revisions, the savings rate tumbled to its lowest since 2015. Sustainable? The 2nd biggest spike in spending since 2005…
- Will You Ever Retire? Many Americans Won’t
Will you ever retire? More and more Americans will not. According to the latest data from the US Bureau of Labor Statistics, almost 20% of Americans 65 and older are still working. That’s the largest percentage of older Americans on the job since the early 1960s. With Baby Boomers hitting retirement age, it’s the largest number of Americans over 65 working ever. Surveys indicate a growing number of people plan to continue working past retirement. The number of Americans who said they intend to continue working “as long as possible” came in at 27%. A full 12% said they don’t plan to retire at all.
- ALERT: Whistleblower Andrew Maguire Says China Just Put A Huge Floor Under The Gold Market
On the heels of a big dollar decline and surge in the price of gold and silver, today whistleblower and London metals trader Andrew Maguire told King World News that China has just put a huge floor under the gold market! Andrew Maguire: “China now has gold investors’ backs. As a key part of its plan, China is building up gold reserves both by way of direct, unreported PBOC (People’s Bank of China) purchases, and much more importantly, openly encouraging citizens to build up their gold investments. I drew attention to a new push by Chinese officials a few weeks back after a contact alerted me to prime time television ads being run in China where the PBOC was openly encouraging its citizens to buy gold. This is no coincidence (Laughter). And those ads by the PBOC have been running ever since then. This gold accumulation push is part of a well structured plan by China that will protect its citizens against the inevitable global currency fallout. China is stealthily winning a financial war against the short-term thinking West.
- David Stockman: The Next President Will Inherit a Recession
Over the last few weeks, the mainstream has been fixated on the prospect an interest rate hike. Janet Yellen insists the economic fundamentals will support a hike. Pundits keep talking about a “strong economy.” But David Stockman recently appeared on Fox Business with Neil Cavuto and said the next president will inherit a recession.
- Consumer confidence lowest since late 2015
Consumers confidence fell in May to the lowest level since late 2015 as Americans turned slightly more pessimistic about overall business conditions and the job market, a survey shows. The consumer confidence index dropped to 92.6 from a revised 94.7 in April, the nonprofit Conference Board said Tuesday. That’s the lowest level since November and well below the postrecession high of 103.8 set in early 2015. Economists polled by MarketWatch had expected the index to increase. Although Americans continue to be cautious about the economy almost seven years into a recovery, their spending habits show that they are somewhat more upbeat than the confidence report suggests. In April, for example, consumer spending rose at the fastest rate since 2009.
- Dallas Fed manufacturing unexpectedly shrinks in May
Manufacturing activity in Dallas shrank in May after improving in the prior two months. The index of general business activity fell to -20.8. Economists had forecast an improvement to -8 from -13.9 in April, according to Bloomberg. New orders plunged 20 points after turning positive in the previous month. The gauges of capacity utilization and shipments also fell back below zero.
- Illinois Budget Debacle Proves Politicians Can’t Fix the Problems They Create
The US faces a massive debt problem. We all know it. But politicians and government officials are either unwilling or incapable of doing anything about it. David Stockman mentioned the burden of debt in a recent interview with Neil Cavuto on Fox Business: “We have $63 trillion of total debt in this economy. The public sector – county, state, and local – is nearly $25 trillion. And we’re getting old. The Baby Boomers are retiring, 10,000 a day. In another 5 or 10 years we’re going to have a massive increase in the retired population. How do you fund all that? Who’s going to pay the taxes?” Despite the glaring magnitude of the problem, government officials seem content to keep their heads buried in the sand and ignore it until it’s too late. Even when they acknowledge it, they seem utterly incapable of effectively dealing with the issue.
- Alan Greenspan: “We’re Running To A State Of Disaster”
Back in March, the former Fed chairman said that we’re in trouble because “productivity is dead in the water, and real capital investment is way below average because business people are very uncertain about the future.” Greenspan went on to add that entitlement programs are crowding out capital investment, and thus crowding out productivity.” Alan Greenspan is back delivering more warnings about the state of the global economy, hammering home the same key points made back in March.
- More in Debt Than Puerto Rico, the Virgin Islands Rejects Rescue
Congress’s plan to throw a lifeline to Puerto Rico is making waves in the U.S. Virgin Islands. The measure that passed a House committee last week would allow for a federal control board to oversee the finances — and potentially restructure the debt — of any U.S. territory, even though Puerto Rico is the only one now asking for help. Virgin Islands Governor Kenneth Mapp and Rep. Stacey Plaskett have blasted the bill, warning that it may tarnish its standing with investors. That concern is already starting to materialize: Returns on its securities are trailing the $3.7 trillion municipal market for the first time since 2011.
- Switzerland rejects proposals for unconditional basic income by overwhelming majority
Switzerland has voted by an overwhelming majority to reject proposals for a universal basic income, according to projections based on a partial count of the vote. Had it passed, anyone legally residing in Switzerland would have received a basic income of 2,500 Swiss Francs (£1,755) every month whether they worked or not. Supporters for the basic income had said that half the work done in Switzerland is unpaid such as housework and care in the community. They stated that such income would help this work become “more valued”. Critics attacked the concept as there was no plan of how to fund the costly policy, something supporters said was the responsibility of the Swiss parliament.
- The Evidence Is In——-For-Profit College Students Have Huge Debts And Lower Incomes
Go to college, study hard, get a good paying job – that’s the mantra heard by most students across America as they wind down their high school careers. Intuitively taking out loans just to go to college because everyone says so isn’t a good idea, and a new study by the NBER finds that in fact, students who left for-profit schools during the 2006-2008 timeframe were worse off after attending. A key factor, as the WSJ reports, is that most of these students never earned a degree, they dropped out. Making matters worse, and certainly contributing to the fact that over 40% of student borrowers don’t make payments, is the fact that these students borrowed to attend the colleges.
- It Starts: Apartment Glut in San Francisco & New York City
On Wednesday, mega-landlord Equity Residential – which “owns or has investments in 314 properties consisting of 78,351 apartment units” and whose chairman and founder is the ultimate real-estate market timer Sam Zell – warned for the second time since the end of April about apartment rental revenues. This time, it blamed a flood of new supply in two cities – the craziest, most ludicrously priced housing markets in the US: New York and San Francisco. Turns out newly signed leases aren’t meeting expectations in those cities, and they’re dragging down the company’s overall national results.
- Has Fed Policy Pumped Up Another Real Estate Bubble?
The more things change, the more they stay the same. After pumping up a real estate bubble in the years leading up to the most recent economic crash, it appears the central bankers and government policymakers may have managed to orchestrate a repeat performance. Real estate mogul Sam Zell appeared on CNBC recently and hinted that a real estate bubble might be about to pop. The chairman of Equity Group Investments and of apartment mega-landlord Equity Residential said the market for apartment and office buildings in some markets have already peaked.
- US Manufacturing Weakest Since 2009: “No Comfort For Those Looking For A Rebound”
Following China’s drop, Japan’s plunge, and Brazil’s crash, US Manufacturing PMI slipped once again to 50.7 – its weakest since September 2009 amid ” subdued client demand and heightened economic uncertainty.” New orders bounce is over as it fell to its weakest since Dec 2015 and worse still input costs are surging to 9 month highs as employment suggest payrolls will remain under pressure. ISM Manufacturing data improved marginally – leaving 50% of the last 10 months in contraction and 50% in expansion. The improvement seesm based on a rise in prices paid and customer inventories – hardly a positive sustainable trend. As Markit concludes, “for those looking for a rebound in the economy after the lacklustre start to the year, the deteriorating trend in manufacturing is not going to provide any comfort.” ISM and PMI Manufacturing indices had recoupled in the last 2 months after ISM’s big plunge.
- Construction spending plunges 1.8% in April
Construction spending tumbled in April, due in part to a decline in residential spending, the Commerce Department said Wednesday. The 1.8% decline was well below forecasts of a 0.7% gain from economists polled by MarketWatch. The monthly data followed an upward revision to March data of about 1.5%. Weakness in April was widespread. Residential construction declined 1.5%, while public construction spending fell 2.8%. Outlays for highways were down 6.6%.
- Fed Beige Book sounds subdued about economy
A key report about the U.S. economy released Wednesday offered a subdued take, leaving open the question of whether the Federal Reserve will raise interest rates this summer. The Federal Reserve’s Beige Book indicated that most districts were seeing the same “modest” or “moderate” growth through the end of May that has been the hallmark of the unspectacular expansion. One contact in Philadelphia, citing no change in drab, so-so conditions, described activity as “disappointingly stable.”
- U.S. Auto Sales Took A Nosedive in May
The U.S. auto industry took a nosedive in May, with General Motors, Ford, and other manufacturers reporting lower U.S. vehicle sales for the month due to weak demand for sedans and fewer selling days. Ford, which on Wednesday reported a 6% drop to 235,997 vehicles from a year earlier, estimated a sales decrease of about 8% for the U.S. industry in May. GM, the largest U.S. automaker, said its sales fell 18% to 240,450 vehicles, a steeper decline than analysts had expected. The sales reports spooked investors who have been on the lookout for weakness in the cyclical auto industry, which has been on an upswing since the Great Recession.
- Losing Ground In Flyover America——Wanting For Work, Buried In Debt
The flyover zones of America are wanting for work and buried in debt. That’s the legacy of three decades of Washington/Wall Street Bubble Finance. The latter has exported jobs, crushed the purchasing power of main street wages and showered the bicoastal elites with the windfalls of financialization. The graph below depicts the main street side of this great societal swindle at work. There are currently 126 million prime working age persons in the US between 25 and 54 years of age. That’s up from 121 million at the beginning of 2000. Yet even as this business cycle is rolling over, the 77.1 million employed full-time from that pool is still 1.2 million below its turn of the century level and accounts for only 61% of the population. On top of that, average real hourly wages have fallen by 7% (based on the Flyover CPI), as well. It might be wondered, therefore, as to how real consumption expenditures rose by $3.1 trillion or 38% during the same 16-year period?
- Since 2014 The US Has Added 455,000 Waiters And Bartenders, And Lost 10,000 Manufacturing Workers
When Obama made another TV appearance earlier this week, taking credit for the Fed’s reflation of the stock market as somehow indicative of an economic “recovery” (“fiction peddlers” not allowed in the crowd), he once ignore the underlying “facts” behind said recovery: here is another way of showing the unprecedented transformation in the US labor pool: since December 2014, the US has added 455,000 waiters and bartenders, while losing 10,000 manufacturing workers. Behold: “Obama’s recovery.”
- US created 38,000 jobs in May vs. 162,000 expected
Job creation tumbled in May, with the economy adding just 38,000 positions, casting doubt on hopes for a stronger economic recovery as well as a Fed rate hike this summer. The Labor Department also reported Friday that the headline unemployment fell to 4.7 percent. That rate does not include those who did not actively look for employment during the month or the underemployed who were working part time for economic reasons. A more encompassing rate that includes those groups held steady at 9.7 percent.
- Americans Not In The Labor Force Soar To Record 94.7 Million, Surge By 664,000 In One Month
So much for that much anticipated rebound in the participation rate. After it had managed to rise for 5 months in a row through March, hitting the highest level in one year, the disenchantment with working has returned, and the labor force participation rate promptly slumped in both April and May, sliding 0.4% in the past two months to 62.60%, just shy of its 35 year low of 62.4% hit last October. This can be seen in the surge of Americans who are no longer in the labor force, who spiked by 664,000 in May, hitting an all time high of 94.7 million. As a result of this the US labor force shrank by over 400,000 to 158,466K, down from 158,924K a month ago, and helped the unemployment rate tumble to 4.7%, the lowest level since 2007. Adding the number of unemployed workers to the people not in the labor force, there are now over 102 million Americans who are either unemployment or no longer looking for work.
- The Biggest Short Ever—-China’s Impaled On An Aging Population, 50 Million Overvalued Empty Apartment Units and Staggering Debt
As simply put as possible…over the next 2 decades, there will be an average of 7.5 million fewer 0-55yr/old Chinese every year vs. an average annual increase of 9.5 million 55+yr/olds. And the wealthy minority of the elderly have stashed their reserves in a whole lot of expensive, vacant real estate that they intend to pass along (rent or sell) to the declining young population. What could go wrong since housing prices only go up…right!?!
- Why Is There Suddenly Such A Huge Push For ‘Mark Of The Beast’ Technology?
We always knew that it was coming. All over the world, governments and big corporations are pushing us toward a fundamentally different way of doing things. They insist that this new way will be more safe, more secure and more efficient. They are telling us that we should embrace new technology and be open to new ways of buying and selling. And they assure us that new methods of identification will not be intrusive and will simply allow them to crack down on criminals such as identity thieves, tax evaders and terrorists. But could it be possible that there is more going on here than we are being told? Could it be possible that we should actually be highly alarmed by this huge push for “Mark of the Beast” technology?
- US Services Economy ‘Bounce’ Dies – ISM/PMI Near “Weakest Expansion Since The Recession”
The brief April bounce in US Services economy has died as PMI slipped back to 51.3 as Markit warns “the service sector reported one of the weakest expansions since the recession.” This weakness was followed by ISM Services which plunged to its lowest since Feb 2014, crushing the hopes of the April bounce. Employment plunged into contraction and New Orders tumbled, with the surveys pointing to GDP growing at an annualised rate of just 0.7-8% in the second quarter. Bye bye April bounce!!
- Buy Gold for What It Does; Not for Its Price
Will the Fed raise rates? Will it hold steady? What will the next move mean for gold? Investor and creator of Things that Make You Go Hmmm Grant Williams doesn’t really care. He’s going to buy gold regardless. In fact, during an interview at the Mauldin Strategic Investment Conference, Williams said he doesn’t really pay attention to the price of the yellow metal: “I think what the Fed does could have short-term impact, but I don’t buy gold around it. I don’t buy gold at $1,100 because I think it’s going to $1,200, I buy it for what it does, not what the price is, the price is the last consideration for me.”
- Fed, again, left with egg on its face as recovery falters
All that hawkish Fed talk in recent weeks, as well as the market’s knee-jerk reaction, seemed kind of silly after Friday’s dismal jobs report. Expectations for a summer rate hike fell into a sinkhole Friday after the Labor Department reported that nonfarm payrolls grew by just 38,000 in May, amounting to the worst monthly jobs growth in five years. A decline in the unemployment rate to 4.7 percent came only because 664,000 Americans fell out of the workforce.
- This Is What The Tap Water Looks Like In Venezuela
One week ago, we showed what the maximum amount of money one can take out of a Venezuela ATM machine looks like: the good news, one still doesn’t need a wheelbarrow to transport it (if only for the time being: with hyperinflation now rampant, it’s only a matter of time); the bad news: this is the equivalent of $25. Now, thanks to AP’s Hannah Dreier, we get a glimpse at the other kind of socialist “liquidity” and step aside Flint, because Caracas has some funky orange stuff flowing out of the tap to offer to those who are thirsty after a day of rioting against a entrenched, dictatorial regime. It appears that Venezuela’s Guri dam, which is so empty it caused the country to give public workers a “five day weekend” as it can’t generate enough electricity to keep the country running, has finally run dry.
- How a summer of shocks threatens to bring mayhem to the markets
Two words are back on the lips of every investor in the City. “Event risk” has begun to dominate trading floor conversations, as a slew of central bank decisions, legal rulings, and political upheavals threaten to bring an end to the calm that has descended upon the markets. After a brief break from the turbulence that dominated the start of the year, when fears over the strength of the global economy and the idea of a sharp slowdown in China unnerved money managers, volatility is set to return to the scene. Mellow May is now expected to give way to what industry veterans are already calling “flaming June”, as a calm start to the month is to be followed by shifts throughout currencies, stocks and bonds. Experts say that they expect June to be a “big month” for the markets, and that things are unlikely to settle down any time soon.
- BHS to close as rescue talks end in failure
The battle to save BHS has ended in failure, after administrators concluded no buyer could be found and told 11,000 staff they would be out of work within weeks. It is the biggest collapse in British retail since Woolworths closed its doors in 2008, and the latest sign of a brutal shake-out triggered by the insurgency of online rivals and an influx of more stylish budget fashion brands.
- Austin Reed To Close All Stores By End Of June
Austin Reed is to close all 120 of its stores by the end of June, affecting approximately 1,000 staff. Administrators said no viable offers were found for the business, including the store estate. However, five concessions which operate within Boundary Mills outlets, along with Austin Reed’s brand, have been acquired by Edinburgh Woollen Mill. The clothing chain had a rich history, and famous customers in its heyday included Sir Winston Churchill and Elizabeth Taylor. Peter Saville, joint administrator at AlixPartners, said: “We have explored all options to sell the business since our appointment and continued to trade the business with the support of the secured creditors in what is clearly an extremely challenging retail environment.
- Evidence grows of an end to the house price boom
Signs of faltering demand in the housing market are prompting estate agents and analysts to suggest England’s house price boom may be ending. Paul Smith, chief executive of the Haart agency — which has more than 100 branches — said: “We believe the nation has now neared the limit in terms of price rises.” Inquiries declined in April at their second-highest rate since 2008, according to the Royal Institution of Chartered Surveyors — a trend that Mike Prew, equity analyst at investment bank Jefferies, said “signals this slowdown could morph into a period of sustained house price deflation”. Drops in this Rics measure are strongly correlated with price falls about a year later, Mr Prew added.
- Be Your Own Central Bank And Buy Gold
Gold is becoming more and more acceptable in the investment community and especially since interest rates have approached zero and in some countries even gone negative. Until recently no portfolio manager would have mentioned gold and even less recommended it. Since the beginning of the year, soon after some called gold just a useless and worthless rock going down to at least $400, a list of hedge fund managers came out with bullish calls for gold and indicated they have been buying. After years of denigrating gold, the investment profession is starting to discover the liquidity trap and acknowledge the value of cash and, more specifically, gold and its place in a diversified portfolio. It remains that gold, as a percentage of global financial assets in 2015, represented only 0.58% vs 2.74% in the ‘80s and 5.00% in the ‘60s.
- Austerity policies do more harm than good, IMF study concludes
A strong warning that austerity policies can do more harm than good has been delivered by economists from the International Monetary Fund, in a critique of the neoliberal doctrine that has dominated economics for the past three decades. In an article seized on by Labour’s shadow chancellor, John McDonnell, the IMF economists said rising inequality was bad for growth and that governments should use controls to cope with destabilising capital flows. The IMF team praised some aspects of the liberalising agenda that was ushered in by Ronald Reagan and Margaret Thatcher in the 1980s – such as the expansion of trade and the increase in foreign direct investment. But it said other aspects of the programme had not delivered the expected improvements in economic performance. Looking specifically at removing barriers to flows of capital and plans to strengthen the public finances, the three IMF economists came up with conclusions that contradicted neoliberal theory. “The benefits in terms of increased growth seem fairly difficult to establish when looking at a broad group of countries,” they said.
- Young people now more likely to live with parents than partners
For the first time in modern history, more 18-to-34-year-olds live with their parents than in any other living arrangement, according to a Pew Research Center report released Tuesday. In 2014, nearly one-third of young adults lived in their parents’ home, a bigger group than those living with a spouse or romantic partner, living alone or with roommates, or living as single parents. While millennials moving back with their parents have been the butt of jokes and hand-wringing for several years, and the recession of 2009 played a part in their doing so, this shift spans more than one generation. It has been decades in the making, a result of deep-rooted societal transformations in education, work and family building.
- California’s $64 Billion Bullet Train To Nowhere Gets Delayed … Again
In the late 1800s, it took railroad companies six years to lay 1,907 miles of track for what was to become the Transcontinental Railroad (or as Barack Obama calls it, the Intercontinental Railroad). Building that railroad line required tunneling through mountains — at one foot a day — building bridges — including one that spanned 700 feet — and doing all the work almost entirely by hand. As best, it will now take seven years for California to lay 119 miles of track — on relatively flat ground in the middle of nowhere. That news came from a contract revision that the Obama administration approved late last week. Instead of finishing the first leg of what is supposed to be a High-Speed Rail service from San Francisco to San Diego by 2018, the new deadline is 2022, which will be seven years after the January 2015 groundbreaking. Even when completed, the first leg will only run from Madera (population 63,105) down to Shafter, a small town north of Bakersfield. Not exactly a heavy transportation corridor.
- Millions of “Subprime Consumers” Getting Credit Cards; What Could Go Wrong?
We’ve said before that the growing level of debt in the US is the elephant in the room we are going to have to address at some point. We’ve talked about the massive government debt and the drag it puts on the US economy. We’ve talked about the crushing weight of student loan debt – increasing at a rate of about $2,726 per second. We’ve talked about the mounting corporate debt, doubling since 2008. And then there is personal debt.
- Jeweler Tiffany posts steepest sales drop since financial crisis
Tiffany & Co (TIF.N) reported its biggest drop in quarterly sales since the peak of the global financial crisis as a strong dollar discouraged tourists from buying its high-end jewelry and eroded revenue from markets outside the United States. The company’s shares fell as much as 3 percent in morning trading on Wednesday. In the Americas region, Tiffany’s sales at stores open more than a year plunged 10 percent in the first quarter. Analysts on average had expected a 9.1 percent decline, according to research firm Consensus Metrix. “Decline in customer share is evident among most shopper segments, including more affluent households,” research firm Conlumino’s Chief Executive Neil Saunders said. “It is especially pronounced among affluent younger shoppers where the brand is seen as representing ‘old world luxury’.”
- Puerto Rico Default Is Coming and It’s Just the Tip of the Iceberg
Good morning Puerto Rico. Default is coming. Legislation moving in Congress would set up an oversight board to guide the US territory through what essentially amounts to bankruptcy. It would not expend federal funds to bail out Puerto Rico, but would allow the island’s government to pay back debtors at less than 100%. This is just a taste of things to come.
- Abercrombie & Fitch chairman says some customers are too afraid to shop – and it’s destroying sales
Abercrombie & Fitch just took a major hit. The brand saw comparable sales decline 8% for this quarter, compared to a 9% decline this time last year. The parent company, which includes a brand for children and Hollister, saw comparable sales fall 4%. The main problem plaguing Abercrombie? Challenges abroad. Chairman Arthur Martinez told Business Insider that the company was “disproportionately affected” by the lack of tourists in flagship stores and international stores. He also said people in European markets are worried about personal safety following recent terrorist attacks, and that that would deter them from going out and shopping. He referenced that that terrorism fears, coupled with other factors, was “feeding into an air of caution” for consumers.
- U.S. states stung by drop in April income tax revenue
U.S. state personal income taxes tumbled in the key revenue month of April due to lower investment returns from weaker equities and energy prices in 2015, a Reuters analysis of state data found. This April, personal income tax (PIT) revenue fell by an average of 9.88 percent compared to the same month last year in the 32 U.S. states and Puerto Rico for which Reuters has data. Taxes on wages and investment income are a top revenue source for the 43 states that collect it. April is the most important revenue month because it contains the tax filing deadline and the tendency of taxpayers who owe money to wait until the last minute to pay. Personal income taxes make up slightly more than a third of states’ total general fund revenue, and sales taxes comprise roughly another third. Collections have been volatile in recent years, including 2013’s “April Surprise,” which delivered unexpectedly high revenues to states as taxpayers sold investments to dodge an increase in federal taxes.
- Miner Sees Silver Price Surging Ninefold as Global Gadgets Boom
A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal. “For an electronics manufacturer to come directly to us — that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. “I think we’ll see three-digit silver,” he said, predicting the metal could surge to $140 an ounce by as early as 2019. That’s a bold forecast. While silver has rallied 19 percent this year to leapfrog gold as the best-performing precious metal, it settled lower Wednesday at $16.26 an ounce on the Comex in New York and reached a record of just under $50 in 2011. The highest projection among analysts surveyed by Bloomberg is $57 an ounce in 2019.
- Manufacturing Recession Goes Global as Demand Withers
The “strong dollar” has been blamed for the manufacturing doldrums in the US that started over a year ago. But then manufacturing in other countries should boom, or at least not decline, but that’s not the case. Manufacturing is sick and weakening in just about every major economy! References to 2009 and the Global Financial Crisis keep popping up in the latest spate of reports because that’s how bad it has gotten.
- Hedge Funds Are Betting Record Amounts on Meltdown of Australian Banks and Housing Bubble
It has been called the “widow maker trade,” based on how short sellers have been dealt with over the past few years. The fundamentals have been inviting: Australia has been in a fully blooming housing bubble. Households are the most indebted in the world, based on debt to disposable income. To maintain the housing bubble, the central bank slashed interest rates to record lows (1.75%). The government wants to keep the bubble going for as long as possible. So regulators close their eyes, according to media reports, to questionable or even illegal lending practices. Home prices, after soaring for years, are clearly unsustainable. But just because it’s a bubble doesn’t mean it has to implode on schedule. It will implode, as all bubbles do, but on its own time. If short sellers get the timing wrong, they’ll get run over by market euphoria. Hence, “widow maker trade” for betting against the housing bubble by shorting the banks. The biggest four banks in Australia are special creatures. Total assets of Commonwealth Bank of Australia (CBA), Australia & New Zealand Banking Group (ANZ), Westpac Banking Corp (WBC), and National Australia Bank (NAB) amount to 220% of Australia’s GDP!
- Ultimate Market Timer Sam Zell: “Know What the Problem Is?”
“No one has ever accused me of not being a realist,” Sam Zell told CNBC. The chairman of Equity Group Investments and of apartment mega-landlord Equity Residential was talking about the markets for office and apartment buildings in some major cities that have already peaked. “Overall we’ve come off this extraordinary period of liquidity and this extraordinary period of low interest rates,” he said. “I think we’re unlikely to see a repeat of that going forward, and I think we’re going to see more supply in what had been pretty tight markets.” And he has been selling. Back in 2007, he once again proved his sense of market timing. As the commercial property bubble was already teetering, he sold Equity Office Properties Trust to Blackstone for $23 billion, not including $16 billion in debt. Then prices crashed, and commercial property defaults hit the banks. As the dust was settling at the end of the Great Recession, he went on a shopping spree. Now he’s selling again, unloading multifamily properties at peak prices on a massive scale just when a multi-year construction boom is flooding the market with new supply.