12.02.16- Italian Banks on the Brink
Jim Rickards

[Ed. Note: Jim Rickards latest New York Times best seller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis (claim your free copy here) goes beyond the election and prepares you for the next crisis]

There’s an old saying: “What’s sauce for the goose is sauce for the gander.” The meaning is obvious — if you insist on something for others, you have to be prepared to hold yourself to the same standard.

A version of that is playing out in Europe today. And right now the strongest signal is not coming from Germany — it’s coming from Italy. Italian banks are in deep financial distress (as were banks in Cyprus and Greece from 2011 to 2015). This involves the Banca Monte dei Paschi di Sienna (BMP), the world’s oldest bank still in operation, founded in 1472. Read More

12.01.16- After a War on Cash, can the War on Gold be far behind?
Jim Rickards

The global elites are using negative interest rates and inflation to make your money disappear. The whole idea of the war on cash is to force savers into digital bank accounts so their money can be taken from them in the form of negative interest rates.

One way to avoid negative interest rates is to go to physical cash.. They can’t impose negative interest rates on cash.

In order to prevent people from using that option, the elites have launched a war on cash, as recent events have borne out. The war on cash is old news, but it is escalating rapidly… Read More

11.30.16- Blockchain Technology – What Is It and How Will It Change Your Life?
Mark O’Byrne

For those of you who follow anything to do with blockchain and blockchain technology,  you will know that the space has had its ups and downs in the last couple of weeks.

The exciting news is that two major players in the gold market, the Royal Mint and CME Group have announced a blockchain-backed gold project, and the surprising news is that the R3CEV consortium is apparently under threat. Read More

11.29.16- Voodoo Economics?
Voodoo Two Won’t Do

Richard Duncan

Voodoo Economics, the combination of tax cuts and increased military spending, worked for President Reagan, but would it work for President Trump? The latest Macro Watch video argues that it might in the short run, but that the risks those policies pose to the economy and to investors are much greater now than they were in 1981. In fact, Voodoo Economics Round Two could lead to a collapse in asset prices and a disastrous economic breakdown.

In 1980, Ronald Reagan ran for president promising to cut taxes, increase military spending and balance the budget. He did cut taxes and he did increase military spending, but he did not balance the budget. Instead, he produced the largest peacetime government budget deficits in history. Government debt increased from $909 billion in 1980 to $2.6 trillion in 1988. The increased government spending and the increased government debt worked wonders for the economy. Read More

11.28.16- Europe Will Devalue Or Dissolve
John Rubino

No rest for the wicked. With the shockwaves from Brexit and President Trump still reverberating around the world, the established order is bracing for more bad news. Next up is a December 4 Italian constitutional referendum that might end the reign of centrist prime minister Matteo Renzi and replace him with a bunch of anti-euro iconoclasts from the Brexit/Trump part of the spectrum. Here’s an excerpt from a much longer, deep-context Guardian UK article:

As the air of insurgency becomes unmistakable, the technical debate over reforming a 70-year-old constitution is in danger of becoming a sideshow. Perhaps the most disturbing poll for Renzi found last week that only 40% of Italians say they will vote on the reform package; 56% consider their vote to be more a verdict on the prime minister, his government and, by implication, the state of the nation. Read More

11.27.16- Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic: Prepare Now for a Collapse of Epic Proportion
Amy S.

This is a tough topic, because people either don’t won’t to believe it or are not capable because they lack the knowledge to comprehend what is being said. When you understand that our country can only operate based on debt/credit, not physical dollars, you finally see that the USA is a huge Ponzi scheme built on nothing more that our ability to borrow money. Our status as the world reserve currency has allowed us to borrow money that we do not have.
The government says that there are 10 trillion dollars sitting in the US Banking system that we can go and easily withdrawal. How can that be true when there only exists 1.4 trillion of real money in circulation (dollars and coins) and more than one half of that is outside the US. Read More

11.26.16- Weekend Rant: The Free Trade Fallacy
John Michael Greer

As longtime readers of this blog know, it’s not uncommon for the essays I post here to go veering off on an assortment of tangents, and this week’s post is going to be an addition to that already well-stocked list. Late last week, as the aftermath of the recent election was still spewing all over the media,  I was mulling over one likely consequence of the way things turned out—the end of at least some of the free trade agreements that have played so large and dubious a role in recent economic history

One of the major currents underlying 2016’s political turmoil in Europe and the United States, in fact, has been a sharp disagreement about the value of free trade. The political establishment throughout the modern industrial world insists that free trade policies, backed up by an ever-increasing network of trade agreements, are both inevitable and inevitably good. Read More

11.25.16- A Recession Could Change Everything
John Mauldin

How on God’s green earth are we supposed to make sense, from an economic and investment portfolio view, of what is happening?

A recession could change everything

It has been quite a while since we have had a recession. When we do have one, it’s going to further limit our choices.

The economic realities of the world have not shifted much in one week. We still have too much debt, not just in the US but around the world. Budget deficits are out of control, not just in the US but around the world. Read More

11.24.16- The Dark Side of “Trumpflation”
Brian Maher

Does Trump mean a return of stagflation?

A ghastly portmanteau of stagnation and inflation, the word conjures the darkest days of the disco era — stalled growth… high unemployment… soaring prices… bell-bottoms.

And some think it’s coming back for another ride in the saddle. Business Insider:

Since the election of Donald Trump, economists and analysts have once again begun to bring up the idea of stagflation hitting the U.S. economy. The combination of government spending and trade policies, coupled with an uncertain growth picture, have brought the disastrous specter of the late 1970s back into the economic discussion. Read More

11.23.16- Two Billion-Dollar Buzz Saws
James G. Rickards

What an amazing month.

Not only did Donald Trump win the U.S. presidential election two weeks ago (something I predicted in advance would happen), but markets exhibited wild swings. Investors got whiplash based on secret middle-of-the night trades by two of the richest men in the world.

Carefully constructed election trading strategies ran into a pair of billion-dollar buzz saws, wielded by legendary stock trader Carl Icahn and hedge fund maven Stan Druckenmiller. Their combined predawn raid on the markets produced shocking results. Read More

11.22.16- Dallas Stares Down a Texas-Size
Threat of Bankruptcy

Mary Williams Walsh

Picture the next major American city to go bankrupt. What springs to mind? Probably not the swagger and sprawl of Dallas. But there was Dallas’s mayor, Michael S. Rawlings, testifying this month to a state oversight board that his city appeared to be “walking into the fan blades” of municipal bankruptcy.

Indeed. Dallas has the fastest economic growth of the nation’s 13 largest cities. Its streets hum with supersize cars and its skyline bristles with cranes. Its mayor is a former chief executive of Pizza Hut. Read More

11.21.16- Could 1 Chart Spell the Fate of U.S. Treasuries?
Birch Gold Group

Last month we discussed the disconcerting trend taking place in the market for U.S. Treasuries. As of October 28, the foremost treasury holders – countries like China, Saudi Arabia, and Japan – were creating the biggest sell-off we’ve seen in recent history. As a result, the level of “custodial paper” – essentially money paid by foreign countries to buy U.S. Treasuries and held by the Federal Reserve – dropped to its lowest level since 2012. In other words, countries started cashing in treasuries faster than they have in years.

But now, the situation is getting even worse. Changes in stateside political headwinds and a continuation of treasury liquidation by foreign central banks paint an ominous picture. Read More

11.19.16- We're Being Played
Chris Martenson

Our emotions are manipulated by persuasion & propaganda

The explosion of emotions triggered by the recent presidential election caught many off guard. Across the country, friendships have been lost, family members estranged, and hostility has boiled over in many communities.

In our consumer culture we're sold lots of things. Two weeks ago it might have been jeans and a TV, but last week it was fear. And Loathing. People were sold fear and loathing, and now it is ruining friendships, making people miserable, and driving the country apart. Read More

11.18.16- Market Report: Bond rout undermines PMs
Alasdair Macleod

Gold and silver prices moved lower this week, while bond yields around the world rose sharply. There can be little doubt now that the bond bubble is deflating, inflicting enormous strains on portfolios, banks and even central banks which have initiated QE programmes. The gold price fell from $1228 at last Friday’s close to $1205 in early European trade this morning. On the same time-scale, silver fell from $17.37 to $16.61.

Behind continuing weakness for precious metals is a very strong dollar against other currencies. The JPY rate has moved from 101.36 at its lowest on 9 November to 110.81 this morning, a move of 9%. On the same time-scale, the euro went from 1.1284 to 1.0600, a move of nearly 6%, to which can be added losses of about 6% on 10-year German bunds. Read More

11.17.16- Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money
Michael Snyder

If Donald Trump truly wants to fix the economy, he must shut down the Federal Reserve.  If he just tries to patch up our current system, he will fail, because it has been fundamentally flawed from the very beginning.  A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system.  An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U.S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape.  Sadly, they were successful on both counts. Read More

11.16.16- World Suffers From Trump Shell Shock - Here’s What Will Happen Next
Brandon Smith

I’ve been saying this for a long time, and I’ll say it again here — in life there are only two kinds of people:  those who know and those who don’t.  Some might claim there is a third option: those who don’t want to know.  In any case, if you want to be able to foresee geopolitical and social trends, you have to be one of the people who know.

Above all else, in order to know you must be willing to step outside of the confusion and theater of the circus and look at developments from above.  If you are biased and retain too many sacred cows you will never understand how the world works.  You will be too busy trying to reinforce your own fantasies to see anything else. Read More

11.15.16- Versatile fabric makes and
stores its own energy

Nick Lavars

With the rise of mobile technologies comes a need for mobile power sources, and it's hard to think of a more discreet way to do this than weaving them right into our clothes. Such a task requires new advances in flexible electronics that can both harvest and store energy, and scientists are now claiming another step forward towards this goal in the form of solar-power producing filaments that could one day lace everything from the sweater of the heavy smartphone user to power-generating outerwear for soldiers in the field.

The researchers had to learn to use a loom to weave their power-storing fabric Read More

11.14.16- Big Losers: FANGT And Leeches
Karl Denninger

Why is tech falling apart post-election while the DOW is at all-time highs?

Simple: A Trump Presidency probably means the end of the leech.

Let's look at who this impacts:

1. Forced "net neutrality" that in fact isn't "net neutrality" at all, but was crammed down the throat of the cable industry to help Netflix.  That's probably gone under a Trump Administration.  What does Netflix have left as a business model if it has to pay for its own distribution costs without being able to shift them onto non-customers?  Nothing, as I've pointed out for years, and given Netflix's forward content cost commitments that makes them odds-on to be a zero. Read More

11.12.15- Will the “Rout” in Government Bonds
Turn into Carnage?

Wolf Richter

“Inflation Trade” Heats Up, “Greater-Fool” Trade Falls Apart

The Government “bond rout” didn’t start with Trump’s election victory. It started in July. And it didn’t just hit US Treasuries. It hit government bonds around the world. It’s predicated on the idea that inflation was raising its ugly head again. That idea has now become further entrenched.

The threat of inflation puts holders of low-yielding or zero-yielding long-term bonds in a very foul mood because the purchasing power of their capital gets destroyed without compensation. Read More

11.11.16- BEWARE: The Empire will strike back in 2017 with an orchestrated, apocalyptic market crash to try to destroy Trump
Mike Adams

(NaturalNews) Listen and pay attention: As you all know by now, the entire media was WRONG and Natural News was RIGHT about this election. I have been publicly predicting a Trump victory for over a year.

As is now obvious, every pollster was wrong. Every mainstream news outlet was wrong. Every political analyst and prognosticator was wrong. But Natural News was RIGHT, which tells you something rather profound about who is actually credible when it comes to news and analysis of world events. (The total morons at the Huffington Post had predicted a 98% chance of a Clinton victory, and now they are melting down in disbelief that their delusional alternate universe has been shattered...) Read More

11.10.16- Meanwhile, as the world watched the election… this happened
Simon Black

One of the most consistent aspects of travel is that, no matter where I go, the Clinton News Network (CNN) follows me around like the albatross in Rhyme of the Ancient Mariner.

I walk into an airport lounge, there it is. I hit a hotel lobby, there it is. I go for breakfast, there it is.

So when I woke up this morning here in Thailand and flipped on the TV, the first thing I saw was Wolf Blitzer having an orgasm every time Hillary won an electoral vote. Read More

11.09.16- The Presidential Election Won’t Stop the MOTHER OF ALL DEFLATIONS
Steve St Angelo

Unfortunately, it doesn’t really matter which party wins the presidential election as neither one will be unable to stop the coming MOTHER OF ALL DEFLATIONS.  While it is frustrating to watch just how insane this presidential race has disintegrated into, I try to not to focus on it.

Why?  Because the U.S. Government will become totally powerless to deal with the future financial and economic collapse.  Furthermore, most institutions will also lose the ability to function when the system cracks.   This really isn’t a matter of if or when…. IT’S HAPPENING NOW.

According to a recent Zerohedge article, Dallas “Pension Fund Panic” As Major Warns Of 130% Property Tax Hike To Avoid Collapse, Read More

11.08.16- The Trouble With Politics
Llewellyn H. Rockwell, Jr.

Politics is of its very nature is biased in favor of intervention and planning. Even in its “minarchist” or “night-watchman” version, politics is based at root on the idea that some decisions must be made coercively and imposed on unwilling minorities – or even majorities, as the case may be. This is contrary to the principle we observe in private life every day: the consent of both parties is necessary for a transaction to take place.

The state never stays “limited” in the long or even medium run, as we’ve seen for ourselves, and before long it worms its way throughout civil society. Once it becomes entrenched in some area of social life that had previously been managed by voluntary means, people grow accustomed to the state’s new role, even coming to view it as indispensable. Read More

11.07.16- Economic Collapse Imminent
by End of 2016

Get Off The BS

Dear Fellow American’s,

Do you believe America’s financial problems from 2008 have been fixed?  Do you think we are on the brink of another banking crisis, or a problem with our currency?

If you are concerned about these possibilities, you are not alone.  We are now facing catastrophic  economic problems in the United States.  And it’s about to get much, much worse.

The evidence is piling up all around us… Read More

11.05.16- Rickards: Expect a Trump Win
Brian Maher

“No matter what happens, there’s going to be volatility, because someone is wrong.”

And as global chief of risk advisory at Credit Suisse, Mark Connors knows something about volatility.

Upcoming events have divided the market into two warring camps: the bulls and the bears. The first event is Tuesday’s election. The other is next month’s looming interest rate hike.

The bulls are a cheery lot right now. Election? I’m not worried, they say. And a rate hike just proves the economy’s shaping up. Read More

11.04.16- US Warns Of Possible Al-Qaeda Terrorist Attack On Monday Targeting NY, Texas And Virginia
Tyler Durden

In an presidential election campaign that has had virtually every possible surprise, only one thing was missing: a terrorist attack.

Alas, even that may be on the horizon because as CBS News reported moments ago, the news station has learned about a potential terror threat for the day before the election: "Sources say U.S. intelligence has alerted joint terrorism task forces that al-Qeada could be planning attacks in three states for Monday.

CBS adds that it is believed New York, Texas and Virginia are all possible targets, though no specific locations are mentioned. Read More

11.03.16- The Bond Market Is Unraveling…
Here’s Where You Should Put Your Money Today

Justin Spittler

The biggest bubble in the world looks like it’s about to pop.

Over the last eight years, central bankers have blown all sorts of bubbles. They’ve blown bubbles in stocks, real estate, and even fine art. But none of these come close to the global bond market bubble.

You see, unlike other financial assets, bonds have actually been in a multi-decade bull market. In July, the yield on the 10-year U.S. Treasury hit an all-time low of 1.37%. (A bond’s yield falls when its price rises.)

Yields on German, Japanese, British, and even Italian 10-years also hit record lows around the same time. But they didn’t stay there long…Read More

11.02.16- Don’t Sweat The Election. The Next Crisis Is Already Baked Into The Cake
John Rubino

Friday was one of those days where you walk away from the screen for a minute and come back to find a completely different market. All it took was the FBI finding a trove of new Clinton emails, thus breathing new life into the Trump campaign and throwing what was a foregone conclusion back into doubt. Stocks tanked and gold popped, illustrating Wall Street’s preference in the upcoming election.

It will be this way until the vote, especially if polls continue to tighten and the outcome remains uncertain. So there’s no point in obsessing over fundamentals for now. Nothing real will matter until we find out who gets to mess things up going forward. Sort of like the original Ghost Busters where the demon/god says “Choose the form of the destructor.” Read More

11.01.16- We Vote for War or Peace with Russia
John V. Walsh

Every presidential vote, like every other vote, demands that one set priorities, for it is a rare voter indeed who will agree 100% with a given candidate.  And surely in the coming presidential election survival must top the list of priorities.  What can be more important than the survival of human civilization and perhaps humanity itself?

Here is a brief primer on the subject – suitable for printing out for liberal friends.

No Fly Zone over Syria

“I personally would be advocating now for a no-fly zone (inside Syria)….” Read More

10.31.16- US Orders Family Members Of Istanbul Consulate Employees To Leave
Tyler Durden

Tensions in Turkey are heating up again.

In a move that is will again infuriate Europe, today Turkish President Recep Tayyip Erdogan said his government would ask parliament to consider reintroducing the death penalty as a punishment for the plotters behind the July coup bid. "Our government will take this (proposal on capital punishment) to parliament. I am convinced that parliament will approve it, and when it comes back to me, I will ratify it," Erdogan said at an inauguration ceremony in Ankara.

"Soon, soon, don't worry. It's happening soon, God willing," he said, as crowds chanted: "We want the death penalty!" Read More

10.29.16- Now Hillary Makes Conspiracy Theory Credible: 50% Believe
Daily Bell Staff

Half Of Americans Believe 9/11 Conspiracy Theories … “The United States is a strongly conspiratorial society.”  …   A majority of Americans believe that the government is concealing information about the 9/11 attacks, one new survey suggests.  And that’s not the only conspiracy theory believed by a wide swath of Americans: Around 40 percent believe the government is hiding information about aliens, the John F. Kennedy assassination and global warming. – The Huffington Post

Before, those who believed in 9/11 conspiracy theories hovered around 20-30 percent according to the mainstream media. Now it’s up to 50 percent, according to this article. Read More

10.28.16- And Now, for Something Entirely Different: In "Shocking Defeat" For Prosecutors, Anti-Government Militant Leader Ammon Bundy And Six Followers Acquited
Tyler Durden

In a shocking verdict, seven anti-government militants including Ammon Bundy, were acquitted in federal court of conspiracy charges stemming from their role in the armed takeover of the Malheur National Wildlife Refuge in Oregon last winter in protest of the Bureau of Land Management’s treatment of the Hammond Family, as supporters cheered outside the courthouse.

Ammon Bundy, Shawna Cox, David Lee Fry, Jeff Wayne Banta, Neil Wampler and Kenneth Medenbach were found not guilty on all counts, however the court could not reach a verdict on Ryan Bundy regarding a theft charge. Read More

10.27.16- Gundlach Predicts Trump Upset, Rampant Deficits, Rising Inflation
Christopher Robbins

Trump will win, interest rates will rise and a new era of fiscal stimulus will begin, leading to doom and gloom for the bond markets, said DoubleLine Capital CEO Jeffrey Gundlach.

Deficits and debt are about to mushroom no matter who becomes president, said Gundlach, who addressed attendees at the Schwab IMPACT 2016 conference in San Diego on Tuesday.

As entitlement programs bear the costs of baby boomer retirements, economic policy moves from monetary manipulation to fiscal stimulus and the tabs for three rounds of quantitative easing become due, Gundlach said the deficit could reach $1.5 trillion within five years. Read More

10.26.16- The Rigged Economy
Bill Bonner

The Madness of QE

BALTIMORE – Like a house on fire, the election continues to draw a crowd of gawkers. We joined them for the final debate, warming our hands and hoping to see the whole damned place burn down.

Like the ancient serpent deity Glycon (whom we have discussed previously), the candidates promised miracles galore:  they shall tell fortunes, help find fugitive slaves, detect thieves and robbers, cause the discovery of treasures, heal the sick, and raise the dead. It will be a glorious future! Read More

10.25.16- The Next Financial Crisis
James Rickards

In my forthcoming book The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, I make a very simple point: In 1998 we were hours away from collapse and did everything wrong following that. In 2008, we were hours away from collapse and did the same thing. Each crisis is bigger than the one before.

The stock market today is not very far from where it was in November 2014. The stock market has had big ups and downs. A big crash in August 2015, a big crash in January 2016. Followed by big rallies back both times because the Fed went back to “happy talk,” but if you factor out that volatility, you’re about where you were 2 years ago. Read More

10.24.16- Equity Bubble Has Run Out of Excuses and Time
Michael Pento

It is finally going to be a make or break earnings season for stocks. This is because the justification for record high stock prices that have been perched atop extremely stretched valuation metrics has been the following false assumptions: the hope that the Federal Reserve will not resume its interest rate hiking cycle, the U.S. dollar stops rising, the price of oil enters a sustainable bull market and long-term interest rates continue to fall.

If all those conditions were in place investors could continue to believe a turnaround in the anemic 2% GDP growth rate endured since 2010 was imminent. And, most importantly, that a reversal in the 5 straight quarters of negative earnings on the S&P 500 was just around the corner. Read More

10.22.16- An Establishment in Panic
Patrick J. Buchanan

Pressed by moderator Chris Wallace as to whether he would accept defeat should Hillary Clinton win the election, Donald Trump replied, “I will tell you at the time. I’ll keep you in suspense.”

“That’s horrifying,” said Clinton, setting off a chain reaction on the post-debate panels with talking heads falling all over one another in purple-faced anger, outrage and disbelief.

“Disqualifying!” was the cry on Clinton cable. Read More

10.21.16- These US Markets Have Cracked, and the Cracks are Spreading
Wolf Richter

“There’s enormous risk in public markets because that’s the one that central banks have distorted to the greatest extent,” El-Erian, chief economic adviser at Allianz SE, told Bloomberg TV, in reference to stock and bond markets. He confessed to the heresy of holding 30% of his portfolio in cash.

“It’s very hard to say I’m going to buy a basket of public equities and go to sleep for the next five to 10 years and feel good about the returns. Similarly with bonds,” he said. Read More

10.20.16- The Danger Zone: Why Israel Greatly Fears Barack Obama’s Last Few Months In Office
Michael Snyder

Between right now and January 20th, 2017 is a real “pressure point” for U.S. relations with Israel. Barack Obama has always desired to “leave a legacy” in the Middle East, and at this point the only option for accomplishing anything tangible is through the United Nations. The Israeli government is extremely concerned that Obama may attempt to take such action before he leaves office, and so they recently asked Secretary of State John Kerry if the U.S. would promise to veto any anti-Israel resolutions that come before the UN Security Council for the rest of Obama’s time in the White House. Unfortunately for Israel, the New York Post is reporting that Kerry flatly refused to make such a promise… Read More

10.19.16- Nuclear Levels of QE Are Coming… The Markets Are About to “Get It”
Graham Summers

The Central Banks are going to go absolutely nuclear within the next 18 months.

In the last few weeks we’ve seen the Bank of Japan, the Bank of England, the European Central, and the US Federal Reserve all push for fiscal stimulus instead of monetary stimulus.

What this means is that Central Banks are collectively saying, “We have reached the end of what QE and rate cuts can do, it’s now the Government’s responsibility to juice the system.” Read More

10.18.16- The Rape of America -- The Core Federal Election Issue
David Jensen

The 2016 US presidential election between leading candidates Republican Donald Trump and Democrat Hillary Clinton has been unusual in that allegations of rape have cropped up during the campaign with Bill Clinton accused of rape, Hillary Clinton accused as an accessory, and Donald Trump accused of groping women without their consent. However, the core issue of the campaign -- indeed the reason the Trump campaign exists -- is citizen anger at a growing sense that their country itself has been abused at the hands of a financial elite.  And this core campaign issue is lost as the back and forth sexual recriminations between the campaigns deflects attention from a critical issue. Read More

10.17.16- 5 Urgent Warnings From Big Banks That the “Economy Has Gone Suicidal”
Mac Slavo

The economy has gone suicidal.

It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.

While the general population is obsessed with the details of the world’s most entertaining and bizarre election in American history, the big banks are gearing up for a deadly serious economic collapse. Read More

10.15.16- Meet Your New Stimulus Allocation Czar
MN Gordon

March Towards Midnight

The march towards midnight is both stirring and foreboding.  Like a death row inmate sitting down to savor his last meal, a grim excitement greets the reality of impending doom.  Thoughts of imminent mortality haunt each bite.

Tic-toc, tic-toc…

As far as the economy’s concerned, there’s no stopping its march towards midnight.  The witching hour’s rapidly approaching.  We intend to savor each moment and make the best of it. Read More

10.14.16- Will a Trump Victory Cause a Market Crash?
Michael Covel

With less than a month before election day, the Deep State fear machine is firing on all cylinders…

Clinton supporter and reality show player Mark Cuban predicts a stock market decline if Trump gets elected.

The Clinton News Network (CNN) also predicts a “dramatic” stock market drop if Trump wins. Of course, the stock market will soar if Clinton is elected. Read More

10.13.16- A Mile-High House of Cards
Nick Giambruno

According to Webster’s Dictionary, an economic depression is “a period of time in which there is little economic activity and many people do not have jobs.”

Italy has had virtually no productive growth since it joined the euro in 1999.

Today, the Italian economy (real GDP per person) is smaller than it was at the turn of the century.

That’s almost two decades of economic stagnation. Read More

10.12.16- Why We Need Another Global Financial Crisis
Mat Spasic

Most people learn quickly in life that mental anguish and fear of an event is usually far more problematic than the outcome itself. This hard and fast rule applies both to things that are in, and out, of our control.

In the context of markets today, the perilous situation Deutsche Bank finds itself in provides an interesting example.

As the German lender continues to negotiate with the US Department of Justice over a near-US$20 billion fine, observers have questioned whether the bank will follow in the footsteps of the now-defunct Lehman Brothers. Read More

10.11.16- How Much Gold and Silver Do You Need For Retirement?
Gary Christenson

You want to retire soon but you don’t trust debt based fiat currency paper assets. Besides, the stock market looks toppy and bonds have about run their 30+ year bull market to its inevitable and ugly end – as indicated by negative interest rates, QE, helicopter money, ZIRP, central bank insanity and more.

How much stacked gold and silver do you need to retire? It clearly depends upon your individual situation – your age, expenses, other income, medical expenses, and more.

Assume that average annual US wages indicates a rough estimate of your annual retirement expenses. Below are graphs of average annual wages expressed in ounces of gold and silver based on their average annual selling price. Read More

10.10.16- Never Say "Never" When It Comes To The Financial Markets
Jesse Felder

“We’ve never had a decline in house prices on a nationwide basis.” -Ben Bernanke, July 2005

Just because something has never happened in the past doesn’t mean it can’t happen in the future. Believing this to be true is just another form of recency bias or extrapolation which, as I have written, is the single greatest mistake investors make. Furthermore, the sort of confidence that underlies the willingness to use the word “never” can be a wonderful sentiment signal on its own. Read More

10.08.16- Weekend Rant: A Financial System Based On Fraud
Jesse’s Café Américain

“Judge them by their works. What have they done for mankind beyond the spinning of airy fancies and the mistaking of their own shadows for gods?” ~ Jack London, The Iron Heel

Gold was pressed down to support at $1,250.00 this morning.

This is a support level that goes back to the day before the Brexit announcement.

Gold and silver both bounced back a bit from the lows of the day. But the slamming of the metals has been particularly relentless ahead of this NFP. Read More

10.06.16- Russia Warns US Any Strikes On Syrian Army Would Lead To War: "Our S-300, S-400 Defenses Are Up And Running"
Tyler Durden

(Editor's Note: If the megalomaniacal pukes in Washington get us in a war with Russia, we will all lose. No ifs or ands or buts... -JSB)

Yesterday morning we reported that in immediate retaliation for the US threat that the Pentagon may launch air strikes against the Assad regime in the latest and most dramatic escalation in the Syrian proxy war in years, Russia's Defense Ministry said that a battery of Russian S-300 air defense missile launchers has been transported to Syria. As Russian Defense Ministry spokesman Igor Konashenkov said, “the Syrian Arab Republic received an S-300 anti-aircraft missile system. This system is designed to ensure the safety of the naval base in [Syrian city of] Tartus and ships located in the coastal area [in Syria]…”  Read More

10.06.16- The Noose Is Tightening Quickly On The Global Economy
Brandon Smith

The investment world has an embarrassingly short attention span.  But frankly, it is a necessity.  If daytraders, hedge funds and other horses in the carousel actually had to look beyond the next week of market activity or study back on market history in comparison to today, then they would not be able to retain their blind optimism, which is exactly what is necessary for them to continue functioning.  If they were all to examine the global financial situation with any honesty, the entire facade would collapse tomorrow.

At bottom, it is not central bank stimulus and intervention alone that drives equities and bond markets; it is the naive faith and willful ignorance of average market participants.  There is a problem with this kind of economic model, however.  Reality is never kept in check indefinitely.  Fiscal truths will be exposed, one way or another. Read More

10.05.16- The Fall of the House of Fraud
(And Peak Corruption)

Stewart Dougherty

Peak Corruption represents the terminal phase of any business, social system, government or collective entity of any kind. Peak Corruption is absolutely and by definition the end of the road.

 The United States has transitioned from a Republic, to a Democracy, to a Crony Capitalist Oligarchy, to its present state: a thinly disguised Monarchy.

This monarchy is ruled by the the American House of Fraud, the nation’s Royal Family. The House of Fraud is populated by a small group of individuals who live like kings and queens by systematically plundering the wealth of the nation. Read More

10.04.16- Mark This Date-Global War Has Arrived
Andrew Hoffman

Last week, I wrote an entire article about lying, invoking the name of history’s most infamous liar, Joseph Goebbels.  Come to think of it, it was the second such article in a month, following September’s “who are worse liars, politicians or Central bankers?

The reason being, that the pace of global economic collapse has accelerated so rapidly (see this morning’s horrific U.S. industrial production report, restaurant performance index, and heavy duty truck orders), that the powers that be’s’ efforts to preserve the dying status quo – that benefits less than 1% of the world’s population, at the expense of all others – have resorted to lies, fraud, manipulation, and propaganda so severe, and perverse, even Goebbels would blanche. Read More

10.03.16- The World is on the Edge of a
Deflationary Black Hole

Egon von Greyerz

The world is now staring down a deflationary black hole that is on the verge of sucking into it all global debt of $250 trillion plus unfunded liabilities and derivatives of another $2 quadrillion or so. That would be the end of the financial system as we know it. Governments and central bankers around the world are of course totally aware of this and are standing with their fingers ready to push the button for the biggest money printing bonanza that the world has ever experienced. Read More

10.01.16- This Is How Much Liquidity Deutsche Bank Has At This Moment, And What Happens Next
Tyler Durden

It is not solvency, or the lack of capital - a vague, synthetic, and usually quite arbitrary concept, determined by regulators - that kills a bank; it is - as Dick Fuld will tell anyone who bothers to listen - the loss of (access to) liquidity: cold, hard, fungible (something Jon Corzine knew all too well when he commingled and was caught) cash, that pushes a bank into its grave, usually quite rapidly: recall that it took Lehman just a few days for its stock to plunge from the high double digits to zero. Read More

09.30.16- The Financial System Is On
The Cusp Of Collapse

Dave Kranzler

DB stock is now in a full panic sell-off as I write this.  It just hit another new all-time NYSE low on by the heaviest volume ever in the stock since its 2001 NYSE listing.  It’s currently down almost 10%.  No doubt the Central Banks will try to bounce it.

Deutsche Bank may well be the scapegoat this time around just like Lehman was the scapegoat in 2008. Central Banks in collusion can prevent just one bank from collapsing. It was the co-collapsing of AIG and Goldman Sachs that prompted then-Secretary of Treasury, ex-Goldman CEO Henry Paulson, to put in motion the bailout of the U.S. and European banking system. Read More

09.29.16- As Heavy-Truck Sales Go, So Goes the Economy
David Ader

For most people, the economy’s ups and downs are best measured by famous indicators like monthly job reports and quarterly releases of gross domestic product. But students of the arcane took special notice earlier this month when the Bureau of Economic Analysis released some disturbing data that didn’t make anybody’s front page. In August, domestic heavy-truck sales fell 29 percent from the same period of 2015, the weakest month in well over three years.

Any drop that dramatic could always be an anomaly, but heavy-truck sales have been slipping for two years. Broad weakness in this category has historically been a reliable hint that a recession is on its way. Read More

09.28.16- EU Banking Mayhem, One Bank at a Time, then All at Once
Wolf Richter

The European banking crisis simply doesn’t let up. Currently, the big two German banks are grabbing the headlines away from the Italian banks, due to their size and the damage they could do to the global financial system. Other banks are in bigger trouble still, and some have already collapsed, with bailouts and bail-ins getting lined up.

Deutsche Bank had to endure a horrendous Monday after it was leaked on Friday that Merkel had refused to entertain bailing out the bank before the general elections a year from now. Merkel’s popularity has gotten broadsided recently, and bailing out bank bondholders with taxpayer money is just not popular at the moment. Read More

09.27.16- Russia and China accumulates even more gold in August as world prepares for the end of dollar hegemony
Nathan McDonald

This coming week could see one of the most anticipated financial events since central banks began their unprecedented policies of money expansion, stimulus, and quantitative easing six years ago.  In fact, dependent upon what China chooses to announce before Sept. 30, it could also be the most important financial paradigm shift since the U.S. took the reserve currency off the gold standard in 1971, or even as big as the implementation of the original Bretton Woods monetary agreement itself. Read More

09.26.16- Obamacare "Death Spiral" Looms As Co-Op Losses Mount
Tyler Durden

Failing insurers. Rising premiums. Financial losses. As Bloomberg details, the deteriorating Obamacare market that the health insurance industry feared is here.

As concerns about the survival of the Affordable Care Act’s markets intensify, Bloomberg notes the role of nonprofit “co-op” health insurers -- meant to broaden choices under the law -- has gained prominence. Read More

09.24.16- "It May Be Over For The BOJ" - Wall Street Throws Up On Kuroda's "Disastrous" New Policy
Tyler Durden

Two days day after the BOJ unveiled its “QQE with Yield Curve Control” (but no fries), the sellside has had time to digest the central bank's latest proposal and the assessment, unlike that of Dan Loeb, is anything but glowing. In fact, it's downright "deplorable."

We start with Goldman, which as we reported two days ago, admitted not only that what the BOJ is launching is tantamount to a "stealth taper", but more disturbingly, has no idea just how the central bank will effectively control the yield curve: Read More

09.23.16- History Shows the Most Unlikely Time to Invest was Actually the Best Time to Buy
Jim Rogers

The lessons of history are very, very, very clear. Pick any year in history, whatever we think is true, that year, 1900, 15 years later, it’s a whole entirely different world. And we all know in 1900 how the world is, and we should be saying to ourselves, find me a weird guy. Find me a strange guy to tell me how this is going to change. 1950, 15 years later, everything we knew, everything we knew was totally wrong. Read More

09.22.16- Great Causes, a Sea of Debt and the 2017 Recession
Bill Bonner

We continue our work with the bomb squad. Myth disposal is dangerous work: People love their myths more than they love life itself. They may kill for money. But they die for their religions, their governments, their clans, and their ideas.

Famous French hippie and author Voltaire. He wears the same sardonic grin in every painting, whether he’s depicted at a young or an old age, doesn’t matter. His real name was François-Marie Arouet; he adopted the pen name Voltaire (one of 178 different ones he used) after spending 11 months incarcerated in a windowless cell in the Bastille, following the publication of a satirical verse in which he insinuated that the French regent practiced incest with his own daughter. Read More

09.21.16- US Dollar Faces 30% Devaluation As BRICS Prepare for the Return of the Gold Standard!
Jim Willie

The Fascist Business Model incorporates all the worse elements of Keynesian economics, a broken fallacious school of thought. The model also integrates a vast system of economic heresy, put forth as public address dogma. All their messages are wrong. They are instead aligned with support of the power structure where big banks conduct self-dealing and print money for themselves. Read More

09.20.16- The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent
Michael Snyder,

The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.  At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.  While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and it is only a matter of time before that debt bubble horribly bursts.  The situation in China has already grown so dire that the Bank for International Settlements is sounding the alarmRead More

09.19.16- Gold Yuan: Post-Dollar World Order Emerging in Eurasia
Ekaterina Blinova

A 'post-American' and 'post-dollar' multipolar world is struggling to be born. In an interview with Sputnik geostrategic analyst Mathew Maavak and CNTV editor Tom McGregor shed light on current geopolitical trends and prospects of Eurasia's integration process.

Back in April 2016 China launched a yuan-denominated gold price fix on the Shanghai Gold Exchange (SGE), while in June Hong Kong Exchanges and Clearing Ltd. signaled its readiness to introduce a physically-delivered gold futures contract, settled in yuan and the US dollar in September. Read More

09.17.16- "Buy, Hold, & Pray" Is Not An Investment Strategy
Tony Sagami

This week’s article is a follow-up to last week’s article (which generated a lot of attention) about stressed-out, tapped-out American consumers.

The Dow Jones Industrial Average has been going sideways ever since the Commerce Department reported that retail sales in July came to a grinding halt (0.0%) in the month of July.

At the same time, the list of companies warning of disappointing sales—Starbucks, McDonald’s, Ford, Burberry, Gap, and many others—suggests trouble in shopping paradise. Read More

09.16.16- The World Is Turning Ugly As 2016 Winds Down
Brandon Smith

I have to say that the negative reverberations in our current economic and political environment are becoming so strong that it is impossible for people to not feel at least some uneasiness in their gut. I imagine this is the same kind of sensation many felt from 1914 to 1918 during World War I and the terrible birth of communism, or perhaps in the early 1930s at the onset of the Great Depression and the rise of fascism. Some global changes are so disturbing that they send shockwaves through the collective unconscious before they ever hit the mainstream. People know that something is about to happen, even if they cannot yet clearly define it. Read More

09.15.16- The Economy: It’s Worse Than I Thought
Dave Kranzler

I got an email from a colleague today that said, among other things:  “The economy is tanking and, while you may be the most pessimistic around, you may not be pessimistic enough.”

To that I would say that I’m significantly more bearish than is reflected in my public analysis.  I spoke to a couple people today who offered anecdotal stories about their particular business niches – businesses in which new orders are somewhat tied to discretionary spending – and they both said that new business activity is unusually slow and that the last time they experienced new order flow this slow this was in 2008. Read More

09.14.16- Deflation = A Rise in the Standard of Living
Jeff Nielson

We need inflation. Just listen to any of the central bank inflation-creators, the puppet politicians, the charlatan economists, or the mindless parrots in the mainstream media. The perverse irony, of course, is that while these liars and idiots lament that we need more inflation, high inflation is already raging around us.

Why do we supposedly need inflation? The answer from these liars/idiots would be funny if it weren’t so tragic – because people actually believe it. We supposedly need inflation to help our economies grow, which (if it were actually true) would lead to a rising standard of living. With a bigger “pie”, everyone gets a larger slice. Read More

09.13.16- Connecting the Dots
Erik Swarts

After the beach grills cool and get covered for the season, a quiet reality sets in that summer is unofficially over and the first days of school are upon us. Our house remains filled with a thick bittersweet nostalgia from a perfect summer now passed, which joyfully took us from the shores of Alaska to Lake Placid and a few other memorable byways in between. Certainly blessed to experience just a snapshot of what this country composes, the enduring anthem of America the Beautiful still resonates as a fitting testament to the best of which she offers. And while the contrast today with the political and social backdrop is a poignant reminder of the complex environment that resides above, the reflection with nature reminds us that life – like the landscape behind it, rarely follows a straight line or that progress is often felt in the present through the repetitive peaks and valleys of a lifetime. Read More

09.12.16- If Everything's Doing So Great,
How Come I’m Not?

Charles Hugh Smith

Are you better off than you were 10 years ago?

We're ceaselessly told/sold that the U.S. economy is doing phenomenally well in our current slow-growth world — generating record corporate profits, record highs in the S&P 500 stock index, and historically low unemployment (4.9% in July 2016). 

While GDP growth is somewhat lackluster by historical standards—less than 2% in 2016—it's growth nonetheless. And the rate of consumer-price inflation is hovering around 1%; negligible by historical standards. Read More

09.11.16- The Great 9/11 coverup
Eric Zuesse

Did you happen to notice that after more than a decade of the ‘news’ media’s demanding publication of “the missing 28 pages” (which turned out actually to have been 29 pages) from the U.S. Congress’s investigation into 9/11, the document’s press-coverage, finally, on 15 July 2016, turned out to have been little-to-none? And did you notice that the little there was, said it contained nothing important? Perhaps you didn’t get to know even this much about the press-coverage of it, because the U.S. Congress, which had been hiding the document ever since 2003, dumped it on a Friday night, in order for it to receive as little press-coverage as possible. Read More

09.10.16- The First Election Debate Could Change Everything
David Stockman

There is real potential that this presidential election could close dramatically and register as a huge shock to the markets. This shock would create a sudden a recognition that, in these very complacent financial markets, everything is up for grabs.  It could signal that policy could change dramatically and that what has carried on for 30 years may be coming to an abrupt end.

September 26th could be a major turning point in this shock. That date is important because it is the first presidential debate. While I don’t know how the debate will turn out, I do think that the outcome could be surprisingly favorable to Trump. If this is the result, the polls could tighten dramatically. Read More

09.09.16- Stock Trading based on Mainstream Media Perfect recipe for Losses
Sol Palha

Emotion is primarily about nothing, and much of it remains about nothing to the end. - George Santayana

If CNN, FOX, CNBC, etc. are the primary sources you use to base your investment decisions on, perhaps it is time for a change in strategy. These outlets focus on amplifying the “noise factor”. Their only function is to make sure that the crowd will over react to any given event.

There is too much information out there already and 90% or more of it is garbage.  Conceivably, Read More

09.08.16- We’re Reaching Point Zero of Debt Creation
Harry Dent

Forty-five years and counting.

We’ve been on a debt spree since the early 1970s when we went off the gold standard, covering every possible angle. Trade deficits, government deficits, unfunded entitlements, private debt – you name it! Our total debt has grown 2.5-times GDP since 1971.

How could economists not see this as a problem? How is this the least bit sustainable?

It isn’t. We’re hurdling toward a massive financial crisis, and all we have to show for it are financial asset bubbles destined to burst. And when they do, they’ll wipe out the artificial wealth they’ve created for many decades… in just a few years, as they did from late 1929 into late 1932!  Read More

09.07.16- From An Industrial Economy To A Paper Economy – The Stunning Decline Of Manufacturing In America
Michael Snyder

Why does it seem like almost everything is made in China these days?  Yesterday I was looking at some pencils that we had laying around the house and I noticed that they had been manufactured in China.  I remarked to my wife that it was such a shame that they don’t make pencils in the United States anymore.  At another point during the day, I turned over my television remote and I noticed that it also had “Made In China” engraved on it.  It is still Labor Day as I write this article, and so I think that it is quite appropriate to write about our transition from an industrial economy to a paper economy today.  Since the year 2000, the United States has lost five million manufacturing jobs even though our population has grown substantially since that time. Read More

09.06.16- September Is Market’s Weakest Month of the Year – Why It Could Be Even Worse in 2016
Mike Whitney

Nobody can predict the markets with 100% accuracy. However, everyone can use tools like historical data, industry research, and current events to get some insights as to where it’s heading. Those tools give us priceless info toward the right ways to grow our wealth, as well as protect it from dangerous trends in the economy. And right now, they’re showing signals that September 2016 could be a time when Americans need protection the most.

Not only is September infamous for being Wall Street’s worst month of the year dating back to 1928, but professionals fear several other factors that could make it even rockier than usual. Read More

09.05.16- A Timetable for the Dollar’s Demise
Daisy Luther

The next five weeks will mark one of the most significant transformations in the international monetary system in over 30 years.

Since the dollar is still the lynchpin of this system, the dollar itself will be affected. Whatever affects the dollar affects you, your portfolio and your personal financial security. It is vital to understand the changes underway in order to protect your net worth, and even prosper in the coming transition.

Such radical transformations of the international monetary system have happened many times before, including the dual “accords” of the 1980s. These were the Plaza Accord in 1985, and the Louvre Accord in 1987 — named respectively after the Plaza Hotel in New York, and the Louvre Museum in Paris where the key meetings took place. Read More

09.03.16- The Coming Storm for Global Financial Markets
A. Gary Shilling

Global growth is weak, and will be eroded further by Brexit. Oil prices are low, and likely to plunge further. The world has excess capacity and a wage-depressing labor surplus. Corporate profits are shaky. And deflation is laying bare the impotence of central banks. So where would you logically expect financial markets to be going, given that economic, financial and political environment?

You’d expect to see increased demand for safe-haven U.S. Treasuries, a soaring dollar, falling commodity prices, and increasing investor aversion to junk bonds, emerging market debt and equities and other low-quality securities. But that’s not the case. Read More

09.02.16- The Coming Gold Super-Spike
James Rickards

I consider gold a form of money. That means I investigate price movements in gold the same way I investigate moves in any other global currency — and find the best way for you to play it.

Right now, if you understand physical gold flows, you could stand to make a fortune in the months and years ahead.

Last June, I visited Zurich and was able to meet with some of the most knowledgeable experts and insiders in the physical gold industry. In March, I visited Lugano where I met with the top executive of the world’s largest gold refinery. As a result of these visits to Switzerland, and other points of contact, I have been able to gather extensive information on the major buyers and sellers of gold bullion in the world and the exact flows of physical gold. Read More

09.01.16- Finance is Not the Economy
Dirk Bezemer and Michael Hudson

Why have economies polarized so sharply since the 1980s, and especially since the 2008 crisis? How did we get so indebted without real wage and living standards rising, while cities, states, and entire nations are falling into default? Only when we answer these questions can we formulate policies to extract ourselves fromthe current debt crises. There is widespread sentiment that this crisis is fundamental, and that we cannot simply “go back to normal.” But deep confusion remains over the theoretical framework that should guide analysis of the post-bubble economy. Read More

08.31.16- The Deep State and the Unspeakable - Mike Lofgren
Jesse's Café Américain

“The state within a state is hiding mostly in plain sight. The pressure to conform to an authority figure or peer group can cause people to behave in shocking ways.

It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice, certainly beyond the dreams of a salaried government employee. Read More

08.30.16- What Life Will Be Like After
an Economic Collapse

Megan Stewart

If you have been waiting for a public announcement or news headline to let you know that an economic collapse has begun, you are in for the surprise of your life. If history in other countries and in Detroit, Michigan is any indication, there won’t be an announcement. An economic collapse tends to sneak up on a city, region, or country gradually over time. In some cases, the arrival of an economic collapse is so gradual that most people living in it aren’t even aware of it at first. Read More

08.29.16- The Market’s Being Set Up For A Hard Fall
David Stockman

The market’s melt-up since the Feb. 11 interim low has been positively surreal. It has gone up 19% since that February low of 1,829 on the S&P 500.

But there’s nothing sustainable about it.

This latest rebound was the work of eyes-wide-shut day traders and robo-machines surfing on a thinner and thinner cushion of momentum. What comes next, in fact, is exactly what happens when you stop pedaling your bicycle. Momentum gets exhausted, gravity takes over and the illusion of stability is painfully shattered. Read More

08.27.16- Weekend Rant: S&P is Set to Crash 50%, Giving Back 5 Years of Gains
Marc Faber Blog

The notoriously bearish Marc Faber is doubling down on his dire market view.

The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC’s “Trading Nation” that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history.

“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber said, referring to a level 50 percent below Monday’s closing on the S&P 500. Read More

08.26.16- Stocks at Record Highs for All the Wrong Reasons
Rick Ackerman

The latest stats from Wall Street have confirmed what we already knew — that the dog days of this summer have been among the dullest ever recorded. “The past 30 days have been the least volatile of any 30-day period in more than two decades,” reported the Wall Street Journal Tuesday beneath the headline “Stock Market Turns Eerily Quiet”. Is it the calm before the storm — or simply a lull before the next big rally? The evidence is persuasive that it is the former, and that in the current economic environment, it is ominous. For one, the stock market has moved steadily higher into new-record territory despite the downtrend in U.S. corporate earnings over the last five quarters. There are numerous other red flags as well. “Smart money has been coming out of the market for quite a while,” notes our old friend Garrett Jones in his latest Observations. Read More

08.25.16- One Can Never Have Too Much Freedom When Building Fruitful Societies
Daily Bell Staff

Being an Ideologue Means Never Having to Say You’re Wrong … “Communism would have worked, if the Soviet Union had only tried it for real.” … For any political-economic ideology, there is always a hard core of believers who will never waver in their conviction that if only the program were tried in its pure form, it would succeed. Any failures — even debacles on a grand scale, including the fiasco of 20th century communism — will be chalked up to ideological impurity and improper application.- Bloomberg Read More

08.24.16- Jim Grant: "This Will Turn Out To Be Very Bad For Many People"
Christoph Gisiger

James Grant, Wall Street expert and editor of the investment newsletter «Grant’s Interest Rate Observer», warns of a crash in sovereign debt, is puzzled over the actions of the Swiss National Bank and bets on gold.

From multi-billion bond buying programs to negative interest rates and probably soon helicopter money: Around the globe, central bankers are experimenting with ever more extreme measures to stimulate the sluggish economy. Read More

08.23.16- 1 Twisted Rule Caused the 2008 Crash –
Here’s Why It’s Poised to Strike Again Soon

Birch Gold

When you start digging into the forces behind the last major financial crisis of 2008, it becomes abundantly clear that global banks and their risky policies had a heavy hand in draining billions of dollars from Americans’ pockets. More specifically, the problem arose because these mega banks worked the system to avoid keeping an appropriate amount of reserve capital to cover their investments – essentially refusing to maintain a safety net to keep them from failing if their investments went south. Here’s why it looks like they’re getting ready to do it all over again. Read More

08.22.16- The Impossible Italian Job
Don Quijones

The Italian Banking Crisis would complete Europe’s “Doom Loop.”

Italy’s repeated attempts to stave off a full-blown financial crisis and breathe life back into its moribund banking sector can be summed up in four words: too little, too late.

In April, it set up a bad bank vehicle called Atlante that was expected to bail out the country’s most troubled lenders as well as allay growing fears of a systemic crisis within the financial sector. With just €5 billion of funds to its name, it did neither. Read More

08.20.16- Rothschild Warns “Biggest Financial Experiment in History” About to Unleash Consequences Unknown
Mac Slavo

These are truly unprecedented times.

Central bankers have never had more power; monetary policy has never been stranger. Stock markets are at record highs, but the real economy is stagnate and suffering. The individuals in it are finding it difficult to makes ends meet, and are drowning in debt.

All the quantative easing went straight to the top; investment had literally no incentive to flow into the larger body. The system is top heavy, topsy turvy and weak in the knees. Collapse appears inevitable, yet could be a long way off. Read More

Faith Money and the Coming Collapse
Mike Adams

View Video

08.18.16- The Reason Our Standard of Living Will Fall
Tom Chatham

The prosperity we once knew as a nation was made possible because of cheap oil. When the EROI, Energy Returned On Invested, was at 30/1 we had unprecedented prosperity. The EROI is now falling below 10/1 and is taking prosperity with it. The EROI is the amount of energy we expend to get energy, in this case oil, out of the ground. We are getting 10 units of energy for every unit we expend to get it. Shale oil production results in 5 units of energy for every unit we expend.

This matters because everything we use depends on cheap energy to maintain the status quo. An EROI of 10/1 is necessary to maintain our current standard of living. The Hills Group project oil will drop to $11.76 by 2020. This may sound good on the surface but cheap oil will not mean much if you have no job and no money to buy it. As the next depression sets in many more people will lose their job and as a result prices will collapse. They project by 2020 we will have 75% fewer gas stations as a result of collapsing oil. Read More

08.17.16- The Day The Dollar Died Part I
James G. Rickards

Will history record September 4th, 2016 as the day the dollar died? Before continuing, let me make it clear that you aren’t going to wake up on September 5th to find anything noticeably different…

The dollar won’t lose its reserve currency status overnight. It won’t be instantaneously inflated into worthless piece of currency, and we aren’t going to see immediate 90% hyperinflation. None of these things are going to happen.

What I mean is that in the not-too-distant future, maybe five years, maybe three years, maybe less, we’ll look back and say, “That was the date when everything changed. That was the turning point for the dollar and we didn’t see it at the time.” But those who know what to look for will understand the significance of that date. Read More

08.16.16- Opinion: Why this U.S. market rally gives investors good reason to be cautious
Conrad de Aenille

Typically reliable measures may be sending misleading signals

Many factors suggest that the U.S. stock market currently is vulnerable to a decline, maybe a big one. The fundamentals are bleak, for starters.

The U.S. economy grew at a dismal 1.2% annual pace in the second quarter, a Commerce Department report released at the end of July showed, and corporate earnings are flat at best. Analysts’ estimates of earnings for the companies in the S&P 500 SPX, +0.35%  have declined in each of the last six quarters, according to FactSet Research. Read More

08.15.16- Burning Down the House
James Howard Kunstler

There’s a new feature to the Anything-Goes-and-Nothing-Matters economy: Nothing-Adds-Up. The magicians who pretend to measure the growth of GDP (Gross Domestic Product — the monetary value of all the finished goods and services) came up with a second quarter “adjusted” figure of 1.2 percent. That would have to be construed by anyone acquainted with basic econ stats as perfectly dismal. And yet the Bureau of Labor Statistics put out a sparkly Nonfarm Payroll Report of 255,000 for July, way above the forecast 180,000. Read More

08.13.16- The Brexit Vote And
Endgame Time For The EU

Kevin Dowd

The Brexit vote was never just about whether the Brits would reject rule from Brussels. The real issues were much broader and felt across the whole EU—an arrogant and undemocratic elite, its disastrous economic policies and an increasing gap between haves and have-nots, the first being the cause of the second and the second the cause of the third. To paraphrase what one disillusioned British voter told The Guardian: if you’ve got money, you vote in; if you ain’t got no money, you vote out.

In this context, I would like to quote two poignant open letters from European friends that were sent out just before the UK referendum. Read More

08.12.16- Why Corporate America Can’t Prop Up Stocks Much Longer
Casey Research

Corporate America is bracing for tough times...

Since you’re reading an investment newsletter, you likely own stocks. And if you’re like most investors, you keep up with how the companies you own are performing. You might even listen to quarterly “earnings calls,” which are when CEOs present results and give their outlook on the business.

Most of the time, CEOs act as cheerleaders on these calls. If business is bad, they’ll say business is good. If business is good, they’ll say it’s great. And CEOs are notoriously optimistic about the economy. After all, thousands of investors and analysts listen to these calls. CEOs know their stock can crash if they’re pessimistic about the business or economy. Read More

08.11.16- Marc Faber Issues A Stunning Warning That A Gigantic 50 Percent Stock Market Crash Could Be Coming
Michael Snyder

Are we about to witness one of the largest stock market crashes in U.S. history?  Swiss investor Marc Faber is the publisher of the “Gloom, Boom & Doom Report”, and he has been a regular guest on CNBC for years.  And even though U.S. stocks have been setting new record high after new record high in recent weeks, he is warning that a massive stock market crash is in our very near future.  According to Faber, we could “easily” see the S&P 500 plunge all the way down to 1,100.  As I sit here writing this article, the S&P 500 is sitting at 2,181.74, so that would be a drop of cataclysmic proportions.  The following is an excerpt from a CNBC article that discussed the remarks that Faber made on their network on Monday Read More

08.10.16- US Treasury Yields Go Negative
Everywhere But Here

John Rubino

Negative interest rates are an existential threat for insurance companies, pension funds and other financial entities that need positive investment returns to survive.

As rates on government bonds have gone negative in Europe and Japan, the above companies have been big buyers of US Treasury bonds, which still (for some reason) continue to offer positive yields.

But according to a Bloomberg analysis published today, Treasuries’ positive yield has recently evaporated when the cost of hedging currency fluctuations is included. Here’s an excerpt: Read More

08.09.16- ZZZZZZZZZZZ....
James Howard Kunstler

Wake the fuck up! Today we turn from the sordid dumbshow of Election 2016 to the parlous mysteries of finance and economics behind our sick politics. Most of the commentary in the mainstream special needs news media is based on the incorrect notion that the current disposition of things is sure to continue and therefore all we have to do is manage the familiar dynamics of the operating system in place. For instance, Grand Vizier Paul Krugman in today’s New York Times pimping for the US to issue ever-greater debt to repair US infrastructure. Does it seem like a sound idea? Borrow tons more money to get American running gear back in order so we can return to a growth economy. Read More

08.08.16- Saving the system
Alasdair Macleod

Monetary policy, we are told, is all about staving off recession and stimulating economic growth.

However, not only is monetary debasement in any form counterproductive and destroys the personal wealth of the masses, but the economists who devised today’s monetarism have completely lost their way.

This article addresses the confusion surrounding this subject, and concludes the real reason for today’s global monetary policies is an ultimately futile attempt to prevent a systemic and economic crisis. Read More

08.06.16- Get ready America... China is preparing to fully challenge the dollar by October
Kenneth Schortgen

An interesting, but extremely important piece of news fell through the cracks earlier this week, that has the potential to be one of the most powerful attacks on the dollar's reserve currency status since 1973.  And it appears to be happening using the West's own mechanism against them.

On Aug. 1, China announced that around the 1st of October they will be internationalizing the IMF's Special Drawing Right's (SDR) currency for global use in trade, thus placing the currency basket in play for nations to use instead of the dollar. Read More

08.05.16- The Bank of England Just Provided Us With More Reasons to Own Gold and Silver
JS Kim

Yesterday the Bank of England cut its main interest rate from 0.5% to 0.25% for the first time, marking its first interest rate change since March 2009, and provided all of us with more reasons to keep converting fiat currencies into physical gold and physical silver. In addition the BOE announced an increase in its QE bond-buying program of £60bn to £435bn. And in response, the British pound immediately fell by 1% to the USD and traders added to their British pound longs, exceeding previous record net long positions in the pound recorded three years ago. Read More

08.04.16- European Banking System on Verge of Collapse; Market Votes 'No Confidence' in Italian Bank Rescue
Mike Shedlock

European bank shares are down for the second day following a last minute bailout package aimed at Italian banks one day before a stress test showed Monte dei Paschi would be insolvent in an adverse scenario.

The ECB's stress tests published on Friday showed Monte dei Paschi has a huge capital shortfall, with the bank's Common Equity Tier 1 (CET1) ratio of negative 2.44 percent.

Forget the adverse scenario bit, Monte dei Paschi, Italy's third largest bank and oldest bank in the world is insolvent in any realistic scenario. Read More

… you are living in a fabricated fairy tale

Mike Adams

(NaturalNews) After witnessing how Reuters just blatantly cooked the presidential election polls this week to favor Clinton and how the mainstream media is so terrifyingly biased in favor of Clinton that the very foundation of democracy is now in crisis, it’s time to tell you something that perhaps a lot more people are finally ready to hear: Read More

08.02.16- EXPOSED: The S&P 500 Earnings Fraud
Michael Covel

A new research report has corporate America and Wall Street reaching for damage control…

Marketwatch recently conducted an in-depth analysis of the top 50 companies in the S&P 500. And what they found was widespread corruption.

An overwhelming majority of America’s blue-chip companies are purposefully promoting false earnings.

It’s a sleazy scheme that makes executives rich while masking the true financial state of corporate America.

Let me show you just how rotten things have become… Read More

08.01.16- A Potential Life Changing Market

The markets have a way to push you just beyond your limits to get you to do the wrong thing at the wrong time and then reverse on a dime. The bearish sentiment from just a casual observation over the last few weeks has felt like there was no way the bulls could rally the PM sector higher before there was a decent correction. In a new bull market the surprises come to the upside and not the downside.

The rally we’re currently experiencing in the PM complex right now and especially the Junior Miners is a potential once in a lifetime event for most investors. Sometimes we get lucky and experience several of these kind of bull markets over a lifetime, but generally your first experience is a learning experience if you can survive long enough to have learned something. Read More

07.30.16- Dollar Hobbled; Technicals Warn of More Losses
Marc Chandler

The US dollar advance was stopped in its tracks by the disappointingly weak Q2 GDP figures. The 1.2% annualized growth rate was roughly half of the pace expected. The FOMC statement earlier in the week did not leave the impression that a September hike was likely, and with the poor growth numbers, the odds were downgraded further.

Now given the reduced contingent risk of a September hike, the odds of a hike 50-75 bp end of the year target range for Fed funds has fallen to about a 1 in 3 chance. However, if you think that there is no chance of a September hike (doubts about the economic strength) or a November hike (too close to the election), then the odds of a December hike is still close to 60%. Read More

07.29.16- Global trade is not growing slower –
it's not growing at all, finds a new report

Johannes Fritz and Simon J Evenett

Falling rates of global trade growth have attracted much comment by analysts and officials, giving rise to a literature on the ‘global trade slowdown’ (Hoekman 2015, Constantinescu et al. 2016). The term ‘slowdown’ gives the impression of world trade losing momentum, but growing nonetheless. The sense of the global pie getting larger has the soothing implication that one nation’s export gains don’t come at the expense of another’s. But are we right to be so sanguine? Read More

07.28.16- A Psychiatric Diagnosis Of The U.S. 'Market'
Charles Hugh Smith

Schizophrenic Disconnect From Reality, Bipolar Mania, Psychotic Delusions of Wealth

If you think a delusional market is healthy, it's time for a psychiatric exam.

What diagnosis would an experienced psychiatrist offer when presented with the bizarre behavior of the U.S. stock market? We assume that the wild mood swings of greed and fear are "normal" for markets devoted to short-term profit and speculation, but the stock market's disconnect from reality is far beyond mere mood swings. Read More

07.27.16- The Blind Leading the Clueless
Jeff Thomas

Most of us watch television. In part, we seek to be entertained, but, additionally, we often seek to be enlightened as to “what’s going on.” In a difficult era like the present one, in which some of the most prominent countries are experiencing the onset of an economic crisis, virtual cartoon characters are competing as choices in political contests, governments are becoming increasingly rapacious and a police state is developing rapidly, it’s not surprising if the average person questions, “What on earth are they thinking?”

Well, there’s no shortage of media exposure to answer that question. Today, there are a multitude of channels offering 24/7 “news,” from which we may hope to glean some insight as to what the leaders of the world are thinking. Yet, in spite of the endless folderol being offered, the leadership vision remains about as clear as mud. Read More

07.26.16- Caterpillar Retail Sales Decline For 43 Consecutive Months
Tyler Durden

There was a time when Caterpillar was considered a key bellwether for trends in global heavy industries, and thus a proxy for the manufacturing sector. However, over the past 3 years that has not been the case for one simple reason: if one looks only at trends revealed by CAT's retail sales the global economy has been mired not in a recession but an unprecedented depression, one which has now lasted some 43 months. That's how long CAT has gone without a single positive month in global retail sales, well over double the duration of the acute collapse in demand following the financial crisis. Read More

07.25.16- Just a Game
Bill Gross

If only Fed Governors and Presidents understood a little bit more about Monopoly, and a tad less about outdated historical models such as the Taylor Rule and the Phillips Curve, then our economy and its future prospects might be a little better off. That is not to say that Monopoly can illuminate all of the problems of our current economic stagnation. Brexit and a growing Populist movement clearly point out that the possibility of de-globalization (less trade, immigration and economic growth) is playing a part. And too, structural elements long ago advanced in my New Normal thesis in 2009 have a significant role as well: aging demographics, Read More

07.23.16- It Looks Like the Global Debt Bomb Is Ready to Blow
Joshua Krause

In recent years we’ve seen global debts soar to heights never before seen in human history. Before the financial crisis of 2007 and 2008, public and private debts were already out of control, but when the governments of the world tried to keep the global economy together with all their might, they did so by going into debt, to the tune of over $200 trillion. And that’s just what the numbers looked like the last time anyone checked back in 2014. Who knows how much debt the world is in now.

And that $200 trillion, by the way, amounts to around 300% of the world’s GDP, and it’s still growing. Obviously this isn’t sustainable. If you had a credit card debt worth three times as much as your yearly salary, and it continued to grow year after year, you’d be bankrupt in no time. Read More

07.22.16- Could This Rally Be a Head-Fake?
Charles Hugh Smith

If there's nothing supporting this rally but euphoric sentiment arising from orchestrated buying, any eruption of reality will reveal the rally as a head-fake.

Let's say you wanted to engineer a stock market rally that triggered every technical "buy" signal and wiped out those who are short the market--what would you do? First, you'd engineer a new all-time high to signal "all clear for further advances."

Then you'd crush volatility as measured by the VIX, signaling that there is nothing standing in the way of more advances. Read More

07.21.16- The Shopping Mall Death Spiral
Charles Marohn

Did the people who built this think it would fail in less than a generation? The answer might surprise you.

The shopping mall is the epitome of America's Suburban Experiment. From a local government standpoint, it was the golden chalice of development, a winner-take-all prize in our race to the bottom. Whoever got the mall was able to steal from their neighbors that fraction of a sliver of retail taxes that local governments receive. When consolidated in one place, that could add up to a significant amount of money, at least for a while.

The losers with their crumbling downtowns.....well, they could eat cake. Read More

07.20.16- Six Major Events That Will Change History
Egon von Greyerz

Investors globally have never faced risk of the magnitude that the we are now exposed to. But sadly very few are aware of the unprecedented risks the world is facing. 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”.

Risk is now staring us all right in our face but very few people can actually see it. Read More

07.19.16- We Are Witnessing The Greatest Dichotomy In The History Of Financial Markets
Jesse Felder

Interest rates are now hitting record-lows while stocks hit record-highs; this has never happened before. Nor should it ever happen.

You see, changes in interest rates are typically a very good economic indicator, forecasting future growth and inflation. In recently plunging to new, all-time lows, they have taken out the lows set during the Great Depression. In other words, the bond market is saying the prospects for the economy are not very good and possibly very dire. Read More

07.18.16- A Stock Market Crash Is Waiting, Paid for by the BoJ
Jack Delaney

A stock market crash could be coming, courtesy of Japanese Prime Minister Shinzo Abe and the Bank of Japan (BoJ).

You see, Abe wants another round of fiscal stimulus, this one for reportedly $99 billion.

And one part of the BoJ’s economic policy in particular could be the biggest catalyst for a stock market crash in 2016.

I’ll get to that especially troubling policy in just a minute. But first, here’s why Japan’s prime minister has ordered this new round of stimulus.Read More

07.16.16- Weekend Rant: End of an Era - The Rise and Fall of the Petrodollar system
Claudio Grass

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. Read More

07.15.16- Greater Fools Storm The Casino
David Stockman

Since last Friday’s phony jobs report the casino has become so unhinged that analysis is beside the point. A picture worth an eventual thousand point drop on the S&P 500 will do the job.

While we are waiting it might be wondered, however, whether nearly two decades of central bank financial repression have not merely destroyed honest price discovery on Wall Street. Perhaps it has actually extinguished brain function entirely among the corporal’s guard of carbon units that remain.

Yes, it is not surprising at all that the robo-machines are now gunning for the 2200 point on the S&P 500 charts. That’s what they do. Read More

07.14.16- Elon Musk and Tesla Are the Face of Bubbling Stock Market, but Maybe Not for Long
The Daily Bell

I can’t think of any governance red flags during the Steve Jobs era at Apple (the one exception being the stock-option backdating issue, which was settled). By contrast, there have been many at Tesla.  Perhaps the Tesla bulls would say that the combination of Musk’s brilliance as well as the potential size of the electrical car market more than compensates for a few red flags. My guess is that Steve Jobs would have been envious at the many benefits of the doubt, as well as the acceptance of continual losses, which investors continue to bestow upon Tesla’s management and its stock price.  –Real Money Read More

07.13.16- The Big Picture Hasn’t Changed: Don’t Get Sucked Back Into the Stock Market
Justin Spittler

Stocks are on a tear right now…

Today, the S&P 500 hit a new all-time high. It topped 2,130 for the first time since May 2015. The benchmark index is now up 6.9% over the past two weeks.

All good, right?

It might seem that way…if we were only analyzing U.S. stocks.

The thing is, in nearly every other market, stocks are still headed lower: Read More

07.12.16- China: The Next Crisis
Kyle Bass

View Video

07.11.16- George Soros predicts riots, police state and class war coming to America
Russia Today

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, 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. Read More

07.09.16- The Disastrous Dollar Standard
Richard Duncan

When the Bretton Woods international monetary system broke down in 1973, the world’s financial officials were unable to agree on a new set of rules to regulate international trade and monetary relations. Instead, a new system began to emerge without formal agreement or sanction. It also remained nameless.

The current international monetary system which evolved out of the collapse of Bretton Woods will be referred to as the dollar standard — so named because U.S. dollars have become the world’s core reserve currency in place of gold, which had comprised the world’s reserve assets under the Bretton Woods system as well as under the classical gold standard of the 19th century. Read More

07.08.16- Bitcoin: A Complete Overview - A World Monetary Revolution Or A Speculative Bubble About To Burst?
Tim Bryant

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford, Founder of Ford Motor Company

By now, many people have probably heard of the word Bitcoin, but chances are that 99% of the world’s population still has no idea exactly what it is or how it actually works. Not only are most completely uniformed when it comes to this new technology, but there is a wide range of differing opinions as to what will come of it, even amongst those within the Bitcoin community. Some highly prominent people have praised it, calling it the “money of the Internet” and offering some very bold statements as to the true paradigm shift that could manifest if Bitcoin proves to be successful. Read More

07.07.16- Hillary Beats the Rap!
Michael Covel

The Clintons are back, baby!

After the FBI let Hillary off the hook yesterday for illegally keeping classified material on her personal servers, Arkansas’ first family of con artists are strutting around like O.J. after beating his murder rap.

They’re untouchable now… and they know it.

They’ve beaten impeachment, the Vince Foster mess, Whitewater, Travelgate, Filegate, Pardongate, the Asian fundraising scandal, the cattle futures scandal, Bubba flying around on the “Lolita Express,” Benghazi… and now the State Department email scandal. Read More

07.06.16- The US is being Isolated, As are the Western Paper Equity Markets?
Wolf Gray

One of the most common questions I face is, “when will the stock market and or the paper equity markets, reflect the true state of the economy?”  The answer is, “it already has, the media just will not report on it in a factual manner.”  Whether by stupidity or by “orders given” they aren’t telling the whole story. 

The truth is, things that are in motion, both up or down, have a measurable life to them. When motion stalls long enough, things give up and die.  WG Read More

07.05.16- And Now, for Something
Dispictabley Outrageous: FBI Recommends "No Charges" Against Hillary Clinton

Tyler Durden

In a surprising statement which concluded moments ago, FBI director James Comey announced that Federal officials have decided not to pursue federal charges against Hillary Clinton for her private email setup, an announcement that will send a shockwave throughout national politics.

BREAKING: FBI to recommend DOJ not pursue charges in Clinton email investigation: "No charges are appropriate." Read More

07.04.16- Another Fourth of July Rant: “Vince Foster’s Ghost” Reappears – Formally Clinton’s Best Friend
Michael Noonan

America used to be known as a great country, a reputation that lived on decades after it was no longer true.  An over heard comment from a group of kids, today, talking about July 4th, Independence Day as being “the fireworks day.”  In truth, that is probably as much as they know about it.

Knowing what is available as a choice for the presidency of this country, it is no accident that common sense, pride in this nation as a Republic [another fact few recognize] and having to “support” a de facto political federal government that does not serve any of the interests of the people, it is no small wonder that a person like Hillary Clinton is the best this country can serve up as a candidate. Read More

07.02.16- Weekend Rant: Brexit pushed the stock market down: Oh the horror
Jon Rappoport

Stocks go up, go down: does it really mean anything?

An investor asked God, “Is the stock market an intrinsically woven part of the universe You created?”

And God said, “Only if you believe I wanted to create a new sucker every minute.”

In the wake of the Brexit vote, and in many other cases where an event is said to be “negative,” stocks plummet. Major media promote these downward actions as evidence that “something bad has happened,” and the “economy is suffering” because of it. Read More

07.01.16- The Safe, Wildly Profitable Volatility Play
Adam English

Britain sinks into the sea, the sky is falling, and the market crumbles.

Or you would have thought so reading the last week's worth of news, but the Brexit U.S. market correction has been about as mild as they come so far.

Sure, there is going to be a headwind on and off for years as this all pans out, but as I said over the weekend, it was a tempest in a teapot.

At least as of the writing of this article, the S&P 500 is back in the green by about 1.5%, and after the first bounce since the drop, it is only off about 2%. Read More

06.30.16- Mooning the Elite
Bill Bonner

Connecting Dots

BALTIMORE –  U.S. stocks bounced on Tuesday, with the Dow up 269 points [and even further on Wednesday, ed.]. Was that all there was? Is the “Brexit” scare over? We don’t know… but we’re going to take a pause today. Instead of trying to connect the new dots, we’re going to take a look at the old dots we’ve already strung together. We’ve been connecting the dots every day (except weekends) for the last 17 years. And today, for the benefit of new readers, old dear readers, and our own benefit too… we step back. What do we see? Read More

06.29.16- Brexit Aftermath -
Here’s What Will Happen Next

Brandon Smith

In my article 'Brexit: Global Trigger Event, Fake Out Or Something Else?', published before the U.K. referendum vote, I outlined numerous reasons why I believed the Brexit was likely to pass. As far as I know, I was one of very few analysts that stuck to my call of a successful Brexit right up until the day of the referendum instead of slowly backing away as the pressure of conflicting polls increased. My prediction was verified that evening.

In my post-Brexit commentary, which can be read here, I then outlined why so many analysts in the mainstream and even in the liberty movement were caught completely unaware by the referendum results. Today, however, I now see hundreds of analysts using the same talking points I argued before the Brexit, but still missing the first and most VITAL underlying truth.  The core reason why I was able to discern the Brexit outcome was because I accepted the reality that the Brexit does not hurt globalists — in the long run, it actually helps them. Read More

06.28.16- We Just Witnessed The Greatest One Day Global Stock Market Loss In World History
Michael Snyder

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. The next six months should be absolutely fascinating to watch. Read More

06.27.16- George Soros: "Brexit Makes EU Disintegration Irreversible"
Tyler Durden

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. Read More

06.25.16- Waiting for Humpty Dumpty
Dr. Ben Hunt

Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses
and all the king's men
Couldn't put Humpty together again.

Brexit is a Bear Stearns moment, not a Lehman moment. That's not to diminish what's happening (markets felt like a death in March 2008), but this isn't the event to make you run for the hills. Why not? Because it doesn't directly crater the global currency system. It's not too big of a shock for the central banks to control. It's not a Humpty Dumpty event, where all the Fed's horses and all the Fed's men can't glue the eggshell back together. But it is an event that forces investors to wake up and prepare their portfolios for the very real systemic risks ahead. Read More

06.24.16- 'Explosive shock' as Britain votes to leave EU, Cameron quits
Guy Faulconbridge and Kate Holton

LONDON Britain has voted to leave the European Union, forcing the resignation of Prime Minister David Cameron and dealing the biggest blow to the European project of greater unity since World War Two.

Global financial markets plunged on Friday as results from a referendum showed a 52-48 percent victory for the campaign to leave a bloc Britain joined more than 40 years ago. Read More

06.23.16- 'No Fly, No Buy' Means No Freedom
Andrew P. Napolitano

The people in the government who want to control our personal choices are the enemies of freedom. And the enemies of freedom can be very clever and seductive.

Last week, these folks, manifesting their lust to keep us dependent upon the government by rejecting the natural right to self-defense, coined a clever phrase: “No fly, no buy.” It sounds rational, yet it rejects core American values.

The phrase was pounded home to average Americans during a one-sided 15-hour televised marathon on the floor of the Senate orchestrated by the gun control crowd. Read More

06.22.16- Why the Brexit Could Be
the End of Central Banks

Shah Gilani

If the United Kingdom grabs all its capital and goes home from Brussels, the result could be market mayhem...

The markets' worry over the possibility of a Brexit – that the United Kingdom may actually pull the trigger and leave the world's biggest economic bloc – has been driving volatility for weeks.

Here's the thing… For all the coverage and attention the Brexit is getting, no one's talking about the most frightening prospect – by far – that's going to happen if Britain exits the European Union. Read More

06.21.16- Libertarian Party is the future, US will not be able to restructure debt
Jim Rogers

View Video

06.20.16- China Must Follow Japan to Survive
Richard Duncan

China has been transformed by a credit-fueled investment boom unlike anything the world has ever seen.

A credit-based economy, built around what has effectively been the dollar standard, made it all possible. There’s no limit to the amount of credit that can be created under a fiat money system. And the dollar standard created a very large global boom, as U.S. dollars flooded into countries like China.

Between 1990 and 2014, investment in China increased a staggering 50-fold. Between 2007 and 2014 alone, investment in China increased by 236%. In the U.S. meanwhile, investment only increased 6% over that same time period. Read More

06.18.16- The Stock Market Crash Of 2016: Stocks Have Already Crashed In 6 Of The World’s 8 Largest Economies
Michael Snyder

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. Read More

06.17.16- Unprecedented Mainstream Media Criticism of Central Banking Bodes Ill for the Larger Economy
Daily Bell Staff

DoubleLine’s Gundlach says ‘central banks are losing control’ …  Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks.  –Reuters

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. Read More

06.16.16- Derivatives Expert Warns Globalists Ready to SHUT DOWN Entire Financial System!
Rory Hall

The globalists seem to be running short of time according to derivatives expert Rob Kirby, as he is warning the algorithms that run the financial system may be turned off in the not too distant future.
When I say not too distant future I mean before the end of summer…

The establishment, globalist, elite, 1%, 0.01% whatever you wish to call them they seem to be on a one-way ride straight into the abyss. The global financial systems and global economies all seem to be moving in the same direction at the same time – down the tubes. Read More

06.15.16- The Establishment Has Lost Its Hold On The People, Brexit Gains Momentum
Nathan McDonald

People around the world are sick and tired of the status quo. They are sick and tired of the overly political correctness and the way that the system is attempting to control every aspect of our lives. You can see this growing wave of discontent from the ever-growing amount of politicians getting elected around the world with a nationalist ideology.

An increasing mass of people is sick and tired of the welfare state that has been created around us and want to get back to good, honest work - the type of hard effort and commitment that made the West the most prosperous nation in the world. Sadly, over the last few decades a growing portion of the population has gotten lazy and have expected more and more from "daddy" government. Read More

06.14.16- It’s Official: China Confirms It Has Begun Liquidating T-Bonds
Tyler Durden

“It would change the outlook on Treasuries quite a bit if you started to price in a fairly large liquidation of their reserves…”

On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that China had dumped a record $143 billion in US Treasurys in three months via Belgium, leaving Goldman speechless for once. Read More

06.13.16- 'Leave' Takes Shocking 19-Point Lead In Brexit Poll - "If It Happens, Gold Will Be The World's Strongest Currency"
Tyler Durden

The headlines go from bad to worse for the UK and EU establishment as yet another new poll this weekend, by Opinium, shows "Brexit" leading by a remarkable 19 points (52% chose to leave the EU against 33% choosing to keep the status quo). This result comes after 2 polls Friday night showing a 10-point lead for "leave" which sparked anxiety across markets. This surge in "leave" probability comes despite an additional 1.5 million voters having registered this week (which many expected to increase "remain" support). Further anger towards EU was exposed when former cabinet minister Iain Duncan Smith warned that seven new prisons will need to be built in the UK by 2030 to cope with the rising number of migrant criminals (presumedly due to 'staying' in the EU). Read More

06.11.16- Is The Fed Just Maintaining The Illusion They’ll Raise Rates?
L Todd Wood

It’s not rocket science.

Here’s what has been going on with the economy: We have had layer after layer of job-killing regulations and policy thrown at the deepest and most resilient economy in the world. Yet, she’s still kicking, the American economy.

But — and it’s a BIG “but” — the economy is one sick puppy. Obamacare, environmental regulations and corruption, the climate change agenda, higher taxes, etc have all been thrown at the American economic wall. And man, have they sure stuck! Read More

06.10.16- Peter Schiff Issues a Rather Large Economic Warning…“It’s Gonna Be Awful”
Charles Hugh Smith

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. Read More

06.08.16- Brexit Could Cause Gold Price to Soar
Matthew Johnston

The surge in gold prices since the beginning of this year following three years of decline could gain further momentum if U.K. citizens vote in favor of the Brexit, which is looking increasingly more likely. The price of gold, a metal perceived to be a safe haven for investors in times of economic stress, could “explode,” according to some analysts, if the nation votes to leave the EU in the upcoming referendum that is now only weeks away.

Driven by the economic turmoil of the global financial crisis, the price of gold soared to record highs before peaking at around $1,900 an ounce in September of 2011. As uncertainties over the financial crisis subsided, gold’s price declined reaching to as low as around $1,050 in November of last year in anticipation of the Fed beginning a new tightening cycle. Read More

06.08.16- Brexit Could Cause Gold Price to Soar
Matthew Johnston

The surge in gold prices since the beginning of this year following three years of decline could gain further momentum if U.K. citizens vote in favor of the Brexit, which is looking increasingly more likely. The price of gold, a metal perceived to be a safe haven for investors in times of economic stress, could “explode,” according to some analysts, if the nation votes to leave the EU in the upcoming referendum that is now only weeks away.

Driven by the economic turmoil of the global financial crisis, the price of gold soared to record highs before peaking at around $1,900 an ounce in September of 2011. As uncertainties over the financial crisis subsided, gold’s price declined reaching to as low as around $1,050 in November of last year in anticipation of the Fed beginning a new tightening cycle. Read More

06.07.16- Federal Reserve Plays Jenga with US Banking System
Samuel Bryan

If you’ve ever played Jenga, you know each player takes turns pulling blocks out of the core of a tower and then placing them on top. The tower gets less and less stable as the game goes on, until eventually it comes crashing down.

This is kind of like what the Federal Reserve does with the US banking and monetary system – except they actually claim they are making things more stable as they go.

Comments by two Federal Reserve governors last week indicate the central bank will likely require American banks considered “too big to fail” to further bulk up their balance sheets in order to protect against big losses and potential future bailouts in an economic crisis. Read More

06.06.16- The Tipping Point Is Quickly Approaching
Doug Casey

Editor's note: "The U.S. is going into a time of troubles at least as bad as any experienced in any advanced country in the last century."

Casey Research founder Doug Casey knows it sounds outrageous—and he'll probably get a lot of backlash—but he believes every American needs to be concerned right now…

Today and tomorrow, Doug will share his thoughts on this coming crisis…and why it will be much worse—and last much longer—than most people expect… Read More

06.04.16- Race to the bottom gaining traction:
Negative rates amplify currency wars

Sol Palha

Ability is a poor man's wealth.
- M. Wren

If you had told individuals before 2009 that we would be living in a negative rate environment in the near future, most would have treated you like a lunatic that just escaped from Ward 12. Fast forward a few years and viola, bankers all over the world are embracing negative rates. China devalued the Yuan once again, adding further fuel to the already blazing fire.  The Fed will have no option but to lower rates and then Jump onto the negative rate bandwagon. Don’t listen to the nonsense the Fed has been mouthing for months that all is well. We can already see the all is good slogan breaking down to “it’s not as good as we thought" slogan; this will eventually change to “oh my God it’s darn right ugly out there. Read More

06.03.16- A 'tsunami' is about to
overwhelm the debt market

Bob Bryan

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. Read More

06.02.16- Why The Next Black Swan
Will Turn Into A Flock

Mark St.Cyr

I was on the phone the other day with a friend, who is also my accountant. We’ve been friends going on 30 years. Once in a while our discussions will veer off into what is commonly known as “shop talk” where we find we’ve suddenly gone from “just gabbing” to a multi-hour intense conversation about markets, the economy, and more. This past one was a little more of “the exception” rather than just the average swing into the generic.

What I discerned from many of his responses was just how inadequately prepared, justifiably frightened, as well as, an overwhelming sense of foreboding was lying right below the surface of those many might deem from the outside looking in as people of wealth, industry leaders, or people who are just assumed to be “well off.” Read More

06.01.16- On the Road to Panicville
Pater Tenebrarum

An Alert for the Global Posse of Liquidity Junkies

In the summer of 2015 and again in December-February this year, global stock markets were rattled by weakness in the yuan’s exchange rate vs. the US dollar. Yuan weakness is widely held to exacerbate pressures on other (already weak) emerging market currencies, but more importantly, it is seen as a symptom of accelerating capital flight from China.

Why is it considered important whether or not China’s foreign exchange reserves are increasing or declining? Read More

05.31.16- Immediate Risk of Systemic Lehman Event
Jim Willie

The entire Western financial systemic, complete with USDollar-based foundation platforms, is breaking down. The breakdown is in full view, very noticeable, in almost every arena. What happened in 2008 with the Lehman Brothers failure event is currently underway with almost every single financial platform, structural entity, financial market, banking structure, and arena. In response to the Lehman killjob event, where JPMorgan and Goldman Sachs strangled the victim firm (by denying Lehman proceeds on countless asset sales), the entire Western financial system has been lashed together, tied together, and connected among its many member parts. The main parts are the big banks, which use derivative contracts to lash themselves together. They believe there is strength in numbers, which is true to some extent. Read More

05.28.16- Weekend Rant:
Your Options... To Serve, Or Be Served

Robert Gore

There are three ways for a person to obtain something of value from another person: receive it as a donation, steal it by force or fraud, or exchange for it. It’s not much of an oversimplification to say that the advance of civilization has hinged on its movement from the first two methods to the third. The right to exchange, and the right to promise as part of a future exchange—the right to contract—are now taken for granted, but those rights are delicate and a whole complex of rights, assumptions, and obligations are subsumed by them. Their intellectual foundations are being undermined as the equality of rights implicit in contract and exchange gives way to a regressive inequality of rights: servitude. Read More

05.27.16- We Have Entered
The Looting Stage Of Capitalism

Paul Craig Roberts

Germany’s Assault On The IMF

Having successfully used the EU to conquer the Greek people by turning the Greek “leftwing” government into a pawn of Germany’s banks, Germany now finds the IMF in the way of its plan to loot Greece into oblivion .

The IMF’s rules prevent the organization from lending to countries that cannot repay the loan. The IMF has concluded on the basis of facts and analysis that Greece cannot repay. Therefore, the IMF is unwilling to lend Greece the money with which to repay the private banks. Read More

05.26.16- Negative Interest Rates Set to Propel the Dow Jones to the Stratosphere?
Sol Palha

"Every man must patiently bide his time. He must wait -- not in listless idleness but in constant, steady, cheerful endeavors, always willing and fulfilling and accomplishing his task, that when the occasion comes he may be equal to the occasion." ~ Henry Wadsworth Longfellow

Central bankers wanted to put the fear of God into the masses and to a large degree they have succeeded in doing so; the masses are so afraid that they continue to hoard their money and refuse to put into the market, and that is why this Bull-Market is the most hated in history. Nine years and counting and you would think by now they would have surrendered these false beliefs as the Bears have been decapitated, and the naysayers are hiding in the woodwork. Read More

05.25.16- The rise of the meta-criminal; Is the NSA manipulating the stock market?
Jon Rappoport

Trevor Timm of the Electronic Freedom Frontier dug up a very interesting nugget. It was embedded in the heralded December 2013 White House task force report on spying and snooping.

Under Recommendations, #31, section 2, he found this:

“Governments should not use their offensive cyber capabilities to change the amounts held in financial accounts or otherwise manipulate financial systems.” Read More

05.24.16- Zombie Economy Soon to Have its Zombie Epocalypse
David Haggith

This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve tried to push back up to that distant high that means new life several times, but each time the market falls into a pit again.

The market’s inability to rise without falling again is getting to be nerve racking for those who stayed in the market, trying to make it work for themselves. For Dennis Gartman, who writes the very influential Gartman Letter, last Wednesday was, in fact, one of the worst career days of his life: Read More

05.23.16- Another Stern Stock Market Crash Warning Was Just Issued by the IMF
Diane Alter

Another stern stock market crash warning was just issued from the International Monetary Fund (IMF), and it’s fueling fear across global markets.

The IMF, an organization of 189 countries, is worried about the ripple effects should the United Kingdom vote to leave the European Union (EU).

A British vote to exit the EU, or “Brexit,” could have significant and negative effects on the UK economy, the IMF said last Friday. The quickly approaching Brexit voting date is June 23. Read More

05.21.16- Observations From The Heart Of Silicon Valley
Adam Taggart

The calm before the storm?

Yesterday I made the 2-hour drive back to Silicon Valley, where I lived for 15 years before moving out to the country.

I rarely go back, as I miss very little about the hyper-elite scene there. When I do, though, I feel I have a useful 'insider-now-outsider' perspective that allows me to see things there more accurately than those who live in that fishbowl 24/7. Read More

05.20.16- This S&P 500 Death Cross’ Could Be The Real Deal
Lorcan Roche Kelly

Not all “death crosses” are created equal.

In a note to clients, Intermarket Strategy Ltd. Chief Executive and Strategist Ashraf Laidi points out that the S&P 500’s 50-week moving average is falling below its 100-week moving average.

This “statistically significant” death cross has only happened twice is the past two decades, Laidi points out. Read More

05.19.16- The Eurozone is the greatest danger
Alasdair Macleod

World-wide, markets are horribly distorted, which spells danger not only to investors, but to businesses and their employees as well, because it is impossible to allocate capital efficiently in this financial environment.

With markets everywhere disrupted by interventions from central banks, governments, and their sovereign wealth funds, economic progress is being badly hampered, and therefore so is the ability of anyone to earn the profits required to pay down the highs levels of debt we see today. Money that is invested in bonds and deposited in banks may already be on the way to money-heaven, without complacent investors and depositors realising it. Read More

05.18.16- America: The Future Third World Country
Tom Chatham

The purchasing power of Americans has been unequalled for the past several decades. This has been made possible by the high paying jobs created by our manufacturing sector. These jobs insured a wealthy middle class that could buy anything they wanted.

These high paying jobs meant that some of the wealth created by making things went to the workers. Before long, corporations began working on ways to keep more of that wealth. Enter the free trade agreement. By drafting and passing a number of free trade agreements, the corporations created a way to make their goods cheaper with overseas labor and keep more of the profit for themselves and their Wall Street owners. The deep pockets of the middle class began to dry up. Read More

05.17.16- America: A Nation of Idiots
Michael Covel

Do you support bombing Agrabah?

That’s a poll question posed to American primary voters recently.

And roughly 30% of Republicans and 20% of Democrats replied “yes.”

Why does a sizeable chunk of America want to annihilate the fictional city in Disney’s 1992 film Aladdin?

Simple answer: They are brain dead. Effectively, victims of full frontal lobotomies.

They live in a fantasy… as fake as the made-up city of Agrabah that they want to carpet bomb. Read More

05.16.16- All the King's horses and all the King's men
Johnny Silver Bear

Clowns: the good, the bad, and the evil

The more things change, the more they stay the same. For those of us who have developed the bad habit of prognostication, the more they stay the same.

I have come to the conclusion, after having attempted to absorb the thoughts and prognostications of many highly intelligent people, that there are basically four groups that are involved in determining the future of the US Economy. Some of that determination is a result of either pushing or pulling, although most of it is a result of doing nothing, which is the collective contribution of the largest group. The largest group is made up of the sheeple, with the occasional good and bad clown popping up every now and then. Read More

05.14.16- Penny Mining Stocks...Rick Rule Top Picks
BNN Market Call

Long time mining financier and speculator Rick Rule took the hot seat yesterday afternoon on BNN Market Call to answer viewer questions on precious metals stocks.

Here is my summary of of the last time Rick Rule was on BNN Market Call.

Argonaut Gold – You have had a nice move in Argonaut. Might be wise to take a little money off the table if you have a profit. Lots of risk in the smaller gold companies including Argonaut. Stay in the gold trade. Read More

05.14.16- Penny Mining Stocks...Rick Rule Top Picks
BNN Market Call

Long time mining financier and speculator Rick Rule took the hot seat yesterday afternoon on BNN Market Call to answer viewer questions on precious metals stocks.

Here is my summary of of the last time Rick Rule was on BNN Market Call.

Argonaut Gold – You have had a nice move in Argonaut. Might be wise to take a little money off the table if you have a profit. Lots of risk in the smaller gold companies including Argonaut. Stay in the gold trade. Read More

05.13.16- Macy’s Crushed By Amazon, Italian Banks Crushed By Euro
John Rubino

This is a tale of changing environments and the organisms that are, as a result, dying off.

First, consider the bricks and mortar retailers. Amazon, the dominant online seller of virtually everything, reports a spectacular quarter with soaring sales and (fairly new for them) strong profits. But in a world of flat consumer spending, where families have already used up their savings, their kids’ college funds and the loose change in their sofas to make ends meet, one store’s feast is necessarily another’s famine. And the physical retailers — which require you to actually go to them in order to buy their stuff — now find the water hole dry and the trees barren of leaves. Here’s what Macy’s reported this morning: Read More

05.12.16- Stuck with dangerous dollar dominance
Mike Dolan

LONDON (Reuters) - The world is getting an object lesson on the problems of having one dominant global currency and even the supposed prime beneficiary, the United States, can see the downside.

Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what happens when a world with its highest-ever peacetime debt pile faces even a hint of higher interest rates.

Despite a constant narrative about U.S. households and banks paying down debts ever since the global credit crash eight years ago, any 'deleveraging' that did happen was more than offset by higher government, corporate and personal debt around the globe in Europe, China and across emerging markets. Read More

05.11.16- With A Historic -150% Net Short Position, Carl Icahn Is Betting On An Imminent Market Collapse
Tyler Durden

Over the past year, based on his increasingly more dour media appearances, billionaire Carl Icahn had been getting progressively more bearish. At first, he was mostly pessimistic about junk bonds, saying last May that "what's even more dangerous than the actual stock market is the high yield market." As the year progressed his pessimism become more acute and in December he said that the "meltdown in high yield is just beginning." It culminated in February when he said on CNBC that a "day of reckoning is coming." Read More


It appears Russia is close to taking the next big step towards de-dollarization and killing the petro-dollar as VladimirPutin’s “dream” of ruble-based pricing of its domestically-produced oil is on the verge of realization. SPIMEX (The St. Petersburg International Mercantile Exchange) is actively courting international oil traders to join its emerging futures market, which as Bloomberg reports, is designed “to create a system where Russian oil is priced and traded in a fair and straightforward way.” Read More

05.09.16- The Bull Market in Stocks May Be Done
Ryan Cristian

It has come to my attention that, perhaps, the great stock bull market is done. To most people, a bull market is good, and its end is bad. After all, a rising market signifies ahealthyeconomy. Investors aremaking money. And it seems to prove that the free market is validated, able to deliver miracles despite Obamacare. Share prices are connected to business productivity, aren’t they?

The Stock Market and the Economy

In a free market they are, of course. However—and this cannot be said too often—we don’t have a free market. We havemonetary policy. This is how our central planners try tostimulateus. They create awealth effect. Read More

05.07.16- Coming Bank Run Will Send Gold to $3,000+
Dan Steinhart

You’re alone in a foreign country, far from your hotel.

You reach in your pocket to grab your wallet. It’s gone…

All your cash, credit cards, and debit cards are in it.

You can’t buy food…or a cab ride…or anything.

You try not to panic. What will you do?

This feeling, multiplied by 1,000, is what a bank run feels like. Read More

05.06.16- Rail Traffic Depression: 292 Union Pacific Engines Are Sitting In The Arizona Desert Doing Nothing
Michael Snyder,

We continue to get more evidence that the U.S. economy has entered a major downturn.  Just last week, I wrote about how U.S. GDP growth numbers have been declining for three quarters in a row, and previously I wrote about how corporate defaults have surged to their highest level since the last financial crisis.  Well, now we are getting some very depressing numbers from the rail industry.  As you will see below, U.S. rail traffic was down more than 11 percent from a year ago in April.  That is an absolutely catastrophic number, and the U.S. rail industry is feeling an enormous amount of pain right now.  This also tells us that “the real economy” is really slowing down, because less stuff is being shipped by rail all over the nation. Read More

05.05.16- US economy is headed for a recession
Dr. Jack Rasmus, Ph.D

The United States is experiencing its fifth relapse in five years.

This past week the U.S. government announced the contry’s economy rose in the January-March 2016 at a mere 0.5 percent annual growth rate. Since the U.S., unlike other countries, estimates its GDP based on annual rates, that means for the first quarter 2016 the U.S. economy grew by barely 0.1 percent over the previous quarter in late 2015.

Growth this slow indicates the US economy may have “slipped into ‘stall speed’, that is, growth so weak that the economy loses enough momentum and slides into recession”, according to economists at JPMorgan Chase. Read More

The Brink of Economic Collapse? How Did This Happen?
Michael Lombardi

On virtually every alternative news site you visit these days—and many mainstream sites as well—you will find predictions of economic collapse and coming calamity. The bizarre thing is not that these articles exist, but rather that we have somehow adapted to them and taken them in stride. In this essay, I have set out to determine how this came about—how did one of the most developed and educated civilizations in history come so close to the economic brink?

I was especially curious to determine if the core mechanics of demand and supply, the stuff you learn in the first 10 minutes of your very first lecture in Economics 101, were still functioning as they should be… Read More

05.03.16- The End Of America?: 13 Catastrophic Events Which Could Soon Lead To An American Apocalypse
Michael Snyder

Is the strongest and most powerful nation on the planet headed for an apocalypse which will bring it to its knees?  We live in a world that is becoming increasingly unstable, and apocalyptic themes have become very common in books, movies, television shows and video games.  It is almost as if there is an unconscious understanding on a societal level that something very big and very bad is coming, even if the vast majority of the population cannot specifically identify what that is going to be.  Last week, the Global Challenges Foundation released a new report entitled “Global Catastrophic Risks 2016” in which they discussed various apocalyptic events that they believe could wipe out more than 10 percent of the population of our planet, and they warned that these types of events “are more likely than we intuitively think”Read More

05.02.16- What the Heck is Going on With the Dollar and “Fear?”
Wolf Richter

Gold jumped 2.2% on Friday to $1,294.90 an ounce. It’s up nearly 5% for the week and hit the highest price since January 2015.

Silver rose 1.7% on Friday to $17.80 an ounce. During the day, it kissed the highest price since January 2015. It has jumped 15% in April.

The yen, which the Bank of Japan successfully crushed for a while, has re-soared, from ¥126 to the dollar in June last year to ¥112 by last Wednesday morning in Tokyo. At that point, the BOJ announced that it would keep its scorched-earth campaign of negative interest rates and money printing unchanged, rather than adding to it. This disappointed the hedge fund community that had been cocksure that the BOJ would throw more fodder their way. Read More

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