From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. A lot of news about the current global collapse. We are still looking at derivatives and that could come from China as predicted. Keep an eye on the news daily. For the past month I have been putting up many stories every day at the Lindsey Williams Online Facebook Page that are important to understand what is happening and how you can protect yourself.
We have now seen gold jump to close to $1,250. It broke $1,200 yesterday and jumped an additional $50 today. For those who didn't prepare when you were warned, unfortunately the life rafts are running out. Gold supplies are running low. Lead times are well over 30 days and now will be considerably more because demand for physical metal is up.
Latest News From February 5, 2016 to February 11, 2016:
- Gold demand bounces back as fear grips markets
Fears that the world is on the brink of another financial crisis pushed gold prices above $1,200 on Thursday as nervous investors snapped up the precious metal. Gold prices jumped to their highest in a year, gaining as much as 3.6pc to $1,234.64 an ounce. It came as the World Gold Council said jitters about the global economy sparked a gold buying spree among nervous investors at the start of the year.
- FTSE 100 hits lowest level since 2012 amid worsening fears of recession
The FTSE 100 has hit its lowest point in three and a half years, down 130 points on opening. European stocks are all the slide again after a difficult day's trading in Asia, which saw Hong Kong rapidly catch up with the global sell-off after the Lunar New Year holiday. The FTSE 100 was down 2.3 per cent, the German DAX was down 3 per cent and France's CAC 40 was down 3.4 per cent.
- “Fasten Your Seatbelts”: Kyle Bass Previews The Collapse Of China's $34 Trillion Banking Sector
Earlier this month, Kyle Bass asked a funny question in a discussion with CNBC’s David Faber. To wit: “If some fund manager in Texas is saying that your currency is dramatically overvalued, you shouldn’t care on a $10 trillion economy with $34 trillion in your banks. I have, call it a billion – it’s so small it should be irrelevant and yet somehow it’s really relevant.”
- Gold Will Smell Blood of Negative Rates-Peter Schiff
Money manager Peter Schiff says forget about the Fed raising interest rates. The next move is down. Schiff explains, “I think there is a pretty good chance we’re going to get 0% interest rates before the end of the year, and I think we’re going to get QE4. We will see if the Fed is going to go negative, but they are going to do it eventually.”
- “It May Take Less Than 48 Hours to Take it ALL Down” – Bill Holter
Whether you want to see it or not, the financial system is in a forced unwinding. It took some 70 years to build this great credit edifice. When it goes it may take less than 48 hours to take it ALL down.
- ALERT: Derivatives Nightmare Has Shares In Hong Kong Plunging And Gold Surging To $1,250
With gold moving well above $1,250, many market participants are trying to understand: Why gold is surging and why there is so much turmoil in overseas trading in Asia?
- This Is How Frightening The Global Collapse Has Now Become
On the heels of the Nikkei plunging a jaw-dropping 11 percent in just 3 days, and the world banking system entering another round of panic, this is how frightening the global collapse has now become.
- No easy way out for Deutsche Bank as investors ‘lose faith'
Deutsche Bank bosses face a formidable task to drag its shares off a 30-year low, with reassurances about its capital levels doing little to improve investor confidence and few other options on the table to trigger a recovery. Germany's flagship lender has trailed its rivals in bouncing back from the 2008 financial crisis, hamstrung by having to pay out billions of dollars in fines to end a string of legal disputes and ageing technical infrastructure.
- Legendary Investor Jim Rogers Warns: “Most People Are Going To Suffer The Next Time Around”
Rogers says that investors around the world are realizing that the jig is up. Stocks are over bloated and central banks will have little choice but to take action again. But this time, says Rogers in his latest interview with CrushTheStreet.com, there will be no stopping it and people all over the world are going to feel the pain, including in China and the United States.
- Netflix, Inc., Yahoo! Inc., LinkedIn Corp, Twitter Inc: Dot-Com Bubble 2.0 Is Bursting
Do you remember how much stocks went down when the first dot-com bubble burst? Well, it is happening again, and tech stocks are already down more than half a trillion dollars since the middle of 2015. On Friday, the tech-heavy Nasdaq dropped to its lowest level in more than 15 months, and it has now fallen more than 16 percent from the peak of the market. But of course some of the biggest names have fallen much more than that.
- 2007 All Over Again, Part 3: Banks Starting To Implode
So far, each financial crisis in the series that began with the junk bond bubble of 1989 has been noticeably different from its predecessors. New instruments, new malefactors, new monetary policy experiments in response. But the one that’s now emerging feels strikingly similar to what just happened a few years ago: Banks overexposed to assets they thought were safe but turn out to be highly risky see their balance sheets deteriorate, their liquidity dry up and their stocks plunge.
- Janet Yellen Sounds a More Cautious Note on the U.S. Economy
The Republicans described the Federal Reserve as ineffective, secretive and out of touch with the economic realities of ordinary Americans. The Democrats showered it with praise, using words like “herculean.” And those were just the opening statements on Wednesday, as the Fed’s chairwoman, Janet L. Yellen, began two days of testimony on Capitol Hill. Ms. Yellen functions as the nation’s economic weather forecaster and, on Wednesday, she sounded more worried than at her last public appearance, in December.
- Gold price surges above $1,200 after latest markets rout
The gold price continues on its strong incremental advance, setting lower lows on a path to higher highs that overnight saw it decisively breach a key resistance level at $1,200. On Wednesday, gold's spot price dipped back slightly in both the European and New York trading sessions, the Wall Street Journal notes, amid a brief relief rally in Europe and some profit-taking from the ongoing “safe haven” shift. But as the equities rout recommenced in Asia overnight, it resumed its upward trend.
- UPDATE: IBEX 35, Spain's Leading Stock Index, Closes Below 8,000 For First Time Since July 2013
Spain's leading stock index, the IBEX 35, gave up what remained of the gains posted during the last 933 days on Tuesday, closing below 8,000 points for the first time since July 22, 2013, at 7,927.60, a fall of 194.5 points or 2.39% compared to yesterday. The indicator dropped as low as 7,862 points during the session. The index has lost 32.36% since reaching a post-2012 high of 11866.40 on April 13 last year, 23% since November 30 last year, just prior to the start of the general election campaign, and 17% since the first trading session of the year on January 4.
- Yield on 10-year Japan government bond falls below zero for first time
Yields on Japan's benchmark 10-year government bond fell below zero for the first time, as investors clamored for safe-haven assets in the wake of a global market rout. The yield on the 10-year Japan government bond (JGB) dropped as low as negative 0.007 percent. The fall came on the heels of a global stock market sell-off overnight that likely spurred safe haven flows back into Japan. Bond prices move inversely to yields.
- DOW 6,000 Extreme Sell-Off Coming-Gregory Mannarino
Trader/analyst Gregory Mannarino called the top of the DOW in May 2015. The market was well over 18,000 then and currently more than 2,000 points lower. Mannarino now says the Dow is going to “6,000–or lower.” Mannarino warns, “People need to be ready for a major, extreme sell-off in equities which are inflated in a bubble.”
- Obama proposes $10 a barrel oil tax
President Obama has released the final budget proposal of his presidency, a $4.1tn (£2.8tn) programme that includes a $10.25 per barrel tax on oil. The Republican-controlled Congress is expected to reject it. The leaders of the House and Senate budget committees jointly announced they would not invite Mr Obama's budget director to testify before them. Despite the setbacks, the White House has said the budget sticks to a bipartisan agenda reached last autumn.
- UK goods trade gap biggest on record
The UK's goods trade gap with the rest of the world widened by £1.9bn to a record high of £125bn in 2015, official figures show. The Office for National Statistics also warned the latest figures would have a negative impact on its second estimate of fourth-quarter economic growth. But 2015 also saw a record surplus in the UK's dominant services sector of £90bn. That meant the UK's total trade gap widened by just £300m last year.
- Brent Oil Falls Most in 5 Months on Glut as Volatility Surges
Crude tumbled the most in five months in London as price volatility climbed to a seven-year high and Goldman Sachs Group Inc. warned of wider swings to come. Brent futures fell 7.8 percent as global equities neared a bear market. Volatility is set to “spike” as prices seek an equilibrium, which could drag oil below $20 a barrel, Goldman Sachs said. The CBOE Crude Oil Volatility Index, which measures expectations of price swings, rose as high as 73.52, almost the highest since 2009. The world oil surplus will be bigger in the first half of this year than previously estimated, according to the International Energy Agency.
- Goldman Sachs Abandons Five of Six ‘Top Trade' Calls for 2016
Goldman Sachs to clients: whoops. Just six weeks into 2016, the New York-based bank has abandoned five of six recommended top trades for the year. The dollar versus a basket of euro and yen; yields on Italian bonds versus their German counterparts; U.S. inflation expectations: Goldman Sachs Group Inc. was wrong on all that and more.
- S&P Downgrades Junk-Level Ratings on 25 Oil-and-Gas Producers
Standard & Poor’s Ratings Services downgraded the junk-territory ratings on 25 oil-and-gas companies on expectations that credit quality will deteriorate owing to low commodities prices and reduced production. The credit-ratings firm, which also affirmed the ratings of an additional 20 speculative-grade exploration-and-production companies, said the ratings actions followed a revision of S&P’s price assumptions for crude and natural-gas.
- Gold futures stretch streak of gains to a 5th-straight session
Gold futures staged a late-session turnaround on Tuesday, as a move lower for oil prices and sharp losses in U.S. equities gave the metal enough momentum to stretch its streak of gains to a fifth-straight session. April gold GCJ6, -0.27% rose 70 cents, or less than 0.1%, to settle at $1,198.60 an ounce, tallying a total gain of more than 6% in five sessions. The settlement price was the highest for a most-active contract since June 19, 2015, FactSet data show.
- Opinion: Will oil be so cheap that it won’t pay to pump it out of the ground?
The conventional wisdom regarding the recent plunge in the price of oil CLH6 is that we are seeing a repeat of the 1985-1986 collapse, when Saudi Arabia ramped up production as part of a dispute with other members of the Organization of Petroleum Exporting Countries cartel. This time, the thinking goes, Saudi Arabia is doing the same in response to its loss of market share to shale-oil production in the United States.
- Deutsche Bank Is Scared: “What Needs To Be Done” In Its Own Words
It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history. The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in “How The Petrodollar Quietly Died, And Nobody Noticed.”
- The Coal Decline Is Now Irreversible
There was a lot of talk last year about coal resources needing to be left in the ground if the world was to reach its 2-degree-celsius reduction environmental targets. The suggestion was that legislation was required to force power generators to switch to less polluting energy sources and, while in the meantime tougher emissions standards have played their part, the market has been much more active than government in encouraging change.
- India surpasses China to become fastest growing economy in the world
India's economy grew faster than China in 2015, official Gross Domestic Product (GDP) data released by both countries has revealed. The Indian government reported that the country grew at an average of 7.5% in 2015, which is more than the 6.9% GDP that Beijing reported during the same period, making India the world's fastest growing major economy.
- Privatization Is the Atlanticist Strategy to Attack Russia — Paul Craig Roberts and Michael Hudson
Two years ago, Russian officials discussed plans to privatize a group of national enterprises headed by the oil producer Rosneft, the VTB Bank, Aeroflot, and Russian Railways. The stated objective was to streamline management of these companies, and also to induce oligarchs to begin bringing their two decades of capital flight back to invest in the Russia economy. Foreign participation was sought in cases where Western technology transfer and management techniques would be likely to help the economy.
- NYSE joining Nasdaq in eliminating stop orders
A type of order traders use to protect against losses is being phased out, as stock exchanges seek to deal with the ramifications of huge intraday swings. The New York Stock Exchange, in a statement, said it would no longer accept what are called stop orders, beginning Feb. 26, joining the Nasdaq NDAQ in barring them. Another order type called good-till-canceled also is being axed.
- Going Negative: Analysts See Increasing Likelihood of Sub-Zero US Interest Rates
Mainstream analysts have started seriously talking about the possibility of negative US interest rates in the near future. On the heels of the Bank of Japan dropping a key interest rate to negative 0.1% late last month and indicating it is willing to go deeper into negative territory, Bloomberg reports that American analysts see an increasing likelihood that the Federal Reserve is willing to follow suit.
- Markets: Flight To Safety As Nikkei Falls 5.4%
The global stock market rout has intensified, with Japan's Nikkei losing 5.4% of its value in a horror show of a trading day that saw a rush for safe havens such as gold and the yen. The sell-off followed Monday's lead on the European and US stock markets when they endured further losses on top of those already witnessed since the start of the year with jitters about the global economy taking a strangle hold on investments.
- JPMorgan forecasts ECB to cut deposit rate as low as -0.7 percent this year
U.S. bank JPMorgan on Tuesday forecast the European Central Bank to aggressively ease monetary policy again by cutting its already negative deposit rate by another 40 basis points to minus 0.7 percent this year. The bank said it also expects the ECB to extend its quantitative easing, or bond-buying programme, through the end of 2017. It said it expected the easing to start next month with a deposit rate cut to -0.5 percent from the current -0.3 percent – followed by a second package perhaps as early as June which will see another 20 basis points lopped off and an extension of QE.
- Setting The Record Straight On The Massive Gold Supply Conspiracy
As market turmoil continues to push gold and silver prices higher, precious metal investors need to understand the fundamentals more than ever. Unfortunately, there continues to be a lot of misinformation reported by sources in the precious metal community. This is harmful as it confuses would be precious metal investors.
- Jaw-Dropping Indicator Last Seen During Great Depression Just Hit An All-Time High!
On the heels of the Dow plunging nearly 400 points at one point during today’s trading session, and with gold surging and oil falling, today a jaw-dropping indicator that was last seen during the Great Depression just hit an all-time high!
- Japanese banks plunge on European financial stocks rout
Japanese and Australian banks picked up the baton from their European peers, pulling the two bourses — the only two major Asian markets trading on Tuesday morning — sharply lower. Nomura led Japan’s meltdown, dropping 8 per cent within 20 minutes of the market opening. Big commercial banks Sumitomo Mitsui and Mitsubishi UFJ Financial were off 7 and 6.7 per cent respectively. Australian banks also fell sharply.
- British steel sector ‘at risk of impending collapse'
Business Secretary joins in Europe-wide plea to EC for anti-dumping action. The steel industry in Britain and Europe faces a “significant and impending risk of collapse”, business ministers have warned in a letter to European Commissioners demanding action to save steel makers.
- Citi: World economy trapped in ‘death spiral'
The global economy is trapped in a “death spiral” that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi (C) strategists have warned. Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S. “The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday.
- Global Growth Fears Hit Bank Stocks
Investors are dumping bank stocks amid worries that a protracted period of slowing global growth, plunging oil prices and rock-bottom interest rates will combine to inflict pain on the world’s largest financial institutions.
- Confusion and turmoil helps gold to shine
Concerns over the global economy have added an extra shine to safe-haven assets such as gold, according to the chief executive of a top mining firm, who told CNBC that “solid” demand and future economic stress could lead to more price gains for the commodity.
- Exclusive: Iran wants euro payment for new and outstanding oil sales – source
Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month's sanctions relief. A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil.
- George Osborne may have just triggered a Financial Crisis ‘greater than 2007’
A recent report issued to the Bank of England has revealed that the actions of George Osborne may be about to trigger a financial crisis greater than 2007, and once again, it will start in the housing market.
- EU on brink of ‘terrifying crisis' Five of Europe's big banks are in danger, warns expert
SOME of Europe's biggest banks are on the brink for a crisis that echoes the 2008 meltdown, a finance expert warned, as fears over the global economy escalate. Deutsche Bank, Credit Suisse, Santander, Barclays and RBS are among the stocks that are falling sharply sending shockwaves through the financial world, according to former hedge fund manager and ex Goldman Sachs employee Raoul Pal.
- Everybody Hopping on Gold Bandwagon, but Signs There All Along
The mainstream world of economics and investment has the attention span of a 12-year-old hopped up on sugar. A couple of months ago, it was all doom and gloom for gold. The Fed was talking interest rate hikes, government spokespersons were claiming victory over the recession, and mainstream analysts were hastily pounding nails in gold’s coffin. Cancel the wake, because today everybody has turned bullish on gold with the price up more than 9% since New Year’s Day.
- Russia is now China's biggest oil partner — and it's a huge problem for Saudi Arabia
Saudi Arabia has long trumped Russia in the Chinese oil market. The Saudi share of Chinese crude imports at the beginning of the decade was about 20%, while Russia's was below 7%, according to data cited by RBC Capital Markets. But now the Russians are creeping in — and the Saudis are getting nervous.
- U.S. rig count drops 8 percent
The total number of rigs actively exploring for or producing oil and gas in the United States dropped more than 8 percent, Baker Hughes reports.
- Fascinating graphics show who owns all the major brands in the world
All the biggest product brands in the world are owned by a handful of corporation. Food, cleaning products, banks, airlines, cars, media companies… everything is in the hands of these megacorporations. These graphics show how everything is connected.
- Who Owns The Big TV Networks
- How 37 Banks Became 4 In Just 2 Decades, All In One Astonishing Chart.
- Strange Occurrence Off The Coast Of Texas Raises Concerns
Something bizarre is happening off the coast of Galveston, Texas. Were you to look toward the sea in the Texas port town, you’d be subject to a oceanic traffic jam of epic proportions. Ships carrying oil have gathered along the coast in the Gulf of Mexico in such great quantities that ships approaching the port have been asked to move toward the town slowly in an attempt to ease the burden.
- Is This How The Smart Money Is Betting On A Market Crash?
Instead of allocating capital to expensive tail risk bets on direct asset class collapse (in equities, credit, and commodities), it appears, just as we detailed previously, the ‘smartest money in the room' is “betting” indirectly on a stock market crash through eurodollar options. As we previously detailed, the costs of tail risk protection in credit and equity markets are soaring (and perhaps the crash in global financial stocks and spike in systemic credit risk supports that concerning possibility).
- Chorus Of Financial Experts Warn Of Imminent Crisis
A growing list of financial gurus and industry experts are warning that 2016 could see a devastating collapse in global financial markets, pushing America into an economic downturn potentially worse than the 2008 recession.
- Tehran wants to dump dollar in crude trade – report
ran wants post-sanctions’ oil contracts denominated in dollars and have buyers pay in euros, Reuters reported. Tehran is also keen to receive money owed to it since the pre-sanctions days in the European currency.
- TPP Deal Just Signed: Paves Way for Authoritarian Technocracy
Beware TPP. It's nothing more than the further formalization of the worst part of the 20th century: The warfare/welfare state. It's just been signed in New Zealand by the 12 negotiating parties and now US President Barack Obama is pressuring Congress to get it passed quickly. Obama wants it passed so that the US will be able to “write the rules of the road in the 21st century,” enabling it to shape global trade to its own advantage.
- 22 Signs That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The Beginning
As bad as the month of January was for the global economy, the truth is that the rest of 2016 promises to be much worse. Layoffs are increasing at a pace that we haven’t seen since the last recession, major retailers are shutting down hundreds of locations, corporate profit margins are plunging, global trade is slowing down dramatically, and several major European banks are in the process of completely imploding.
- US trade deficit widens as exports fall
The U.S. trade deficit widened in December as a strong dollar and weak global demand continued to weigh on exports. The Commerce Department said on Friday the trade gap rose 2.7 percent to $43.4 billion. November's trade deficit was revised down to $42.2 billion from the previously reported $42.4 billion.
- Dollar tumbles as Fed rescues China in the nick of time
The central banks of Europe and Japan discover that it is impossible to stave off deflation by debasing their currencies when everybody is playing the same game. The US dollar has suffered one of the sharpest drops in 20 years as the Federal Reserve signals a retreat from monetary tightening, igniting a powerful rally for commodities and easing a ferocious squeeze on dollar debtors in China and emerging markets.
- Congress wants to turn the US Postal Service… into a bank
It’s news that seems ripped from the pages of The Onion. Or perhaps Atlas Shrugged. But incredibly enough it’s actually true: earlier this week, Congress proposed a new law authorizing the US Postal Service to provide banking and financial services. It’s called the “Providing Opportunities for Savings, Transactions, and Lending” Act, abbreviated as… wait for it… the POSTAL Act.
- Why it would be wise to prepare for the next recession
What might central banks do if the next recession hit while interest rates were still far below pre-2008 levels? As a paper from the London-based Resolution Foundation argues, this is highly likely. Central banks need to be prepared for this eventuality. The most important part of such preparation is to convince the public that they know what to do.
- Mass Layoffs To Return With A Vengeance
Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival. Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. With those giga-tons of liquidity sloshing around, as well as taking on massive amounts of new cheap debt, companies were able to finance their working capital needs, hire workers back, and even buy-back their shares en mass to make themselves look deceptively profitable. The nightmare of 2008 soon became a golden era of ‘recovery'. Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.
- New financial MELTDOWN set to sink EU as German banks lose £14,292,610,000.00 in 90 DAYS
EUROPE'S biggest economy was plunged into fresh chaos tonight amid warnings a new financial crisis in Germany could destroy the EU. Shares in Germany's two biggest lenders – Deutsche Bank and Commerzbank – fell sharply again as panic gripped global markets. They have now seen their combined market value plummet by more than £14BILLION in the past three months. Deutsche Bank shares fell by nearly four per cent to close at an all-time low amid turmoil not seen since the depths of the financial crisis in 2009. Meanwhile shares in Commerzbank, Germany's second biggest lender, fell even further, by 4.65 per cent, to close at their lowest level in nearly two-and-a-half years.
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