Sunday, December 25, 2016

Trumpocalypse? Suddenly Liberals Are The Ones Stockpiling Food, Guns And Emergency Supplies

So liberals called preppers "far-right, extreme, domestic terrorists."  And now that Trump won the presidential elections, liberals are now prepping for the apocalypse?  The hypocrisy from the left continues to astound.

http://theeconomiccollapseblog.com/archives/trumpocalypse-suddenly-liberals-are-the-ones-stockpiling-food-guns-and-emergency-supplies

Top Ex-White House Economist Admits 94% Of All New Jobs Under Obama Were Part-Time

http://www.zerohedge.com/news/2016-12-23/top-white-house-economist-admits-94-all-new-jobs-under-obama-were-part-time

Paul Craig Roberts’ Major Warning And Very Timely Message

http://kingworldnews.com/a-very-important-and-timely-message-from-paul-craig-roberts/

One Major Firm’s Chief Investment Strategist Just Said It’s Time To Own Gold, Silver And Other Hard Assets

Saut is a well-respected analyst in the mainstream financial community.  Typically, he's a cheerleader for equities and not a fan of gold.  However, he has recently turned bullish on real assets, including gold.  I don't think he fully understands the precious metals markets (after all, he is part of Wall Street status quo), but he definitely has an eye for market timing and fundamental analysis.

http://kingworldnews.com/one-major-firms-chief-investment-strategist-says-its-time-to-own-gold-silver/

Tuesday, December 13, 2016

War on ‘Fake News’ Part of a War on Free Speech

Ron Paul is a true hero.  His critics who falsely claim he is a Russian agent are the true traitors, seeking to eliminate dissenting voices.

http://ronpaulinstitute.org/archives/featured-articles/2016/december/11/war-on-fake-news-part-of-a-war-on-free-speech/

Saturday, November 26, 2016

The Fallacies of Bernie Sanders

https://mises.org/blog/fallacies-bernie-sanders

“Bernie often says out loud what others are privately thinking.” (p.13) The middle class and the poor are not doing well, he says; and the fault lies in a “rigged’ system.  “The economy becomes rigged because the rich, primarily represented by ‘greedy’ billionaires and corporations, use their wealth to subvert the political process and take command of government.

Lewis finds much truth in Sanders’s accusation.  In a manifestly corrupt way, for example, failed banks and businesses were “bailed out” after the financial crash of 2008. “[Hank] Paulson, former CEO of Goldman Sachs, was one of the architects of the Wall Street bailout of 2008 which not only rescued Wall Street, but also rescued his own firm, along with all the shares he still retained in that firm.” (p.132)

If Sanders has correctly identified a major problem, his proposed solution to it would only make matters worse; and in Lewis’s careful pressing home of this claim against Sanders lies the principal contribution of his book.

Sanders wants to end the rigged system by, among other measures,  increasing government control over corporations and redistributing income and wealth  from the rich to the poor. In these proposals, he overlooks a vital distinction; and this vitiates the rationale for what he suggests.  Sanders blames capitalism for the rigged system, but what we have today is not a free market economy but rather “crony capitalism.” “It does not seem so much a capitalist system  in the United States as a crony capitalism in which individuals get rich, not by supplying good products and services at the lowest possible cost for consumers, but rather by getting monopoly protections or other favors from government or by otherwise benefiting from government actions or connections.” 

By neglecting to distinguish crony capitalism from genuine capitalism, Sanders is led to propose “cures” that would only intensify the disease he diagnoses. “Bernie proposes to solve the problem of political corruption and a rigged economy by giving government even more power. How will this help? Surely an expanded and even more powerful government, ever more deeply involved in running the economy, will become an even more tempting target for the wealthy subverters?” 

Monday, November 21, 2016

After Trump Win, Ad Agencies Admit They're Clueless On How To Market To Midwest Consumers


http://www.zerohedge.com/news/2016-11-21/after-trump-win-ad-agencies-admit-theyre-clueless-how-market-midwest-consumers
In the wake of Donald Trump’s election as U.S. president with a wave of support from middle American voters, advertisers are reflecting on whether they are out of touch with the same people—rural, economically frustrated, elite-distrusting, anti-globalization voters—who propelled the businessman into the White House. Mr. Trump’s rise has them rethinking the way they collect data about consumers, recruit staff and pitch products.

“Every so often you have to reset what is the aspirational goal the public has with regard to the products we sell,” said Harris Diamond, McCann’s CEO. “So many marketing programs are oriented toward metro elite imagery.” Marketing needs to reflect less of New York and Los Angeles culture, he said, and more of “Des Moines and Scranton.”

This Is The Real Reason Why The Public Is Broke And The Middle Class Is Being Destroyed

http://kingworldnews.com/this-is-the-real-reason-why-the-public-is-broke-and-the-middle-class-is-being-destroyed/

Saturday, November 5, 2016

Thursday, October 20, 2016

Monday, October 17, 2016

The Real Humanitarian Crisis Is Not Aleppo — Paul Craig Roberts

http://www.paulcraigroberts.org/2016/10/16/the-real-humanitarian-crisis-is-not-aleppo-paul-craig-roberts/

This Is Going To Shock World Financial Markets

http://kingworldnews.com/this-will-shock-world-financial-markets/
I believe we will have unlimited money printing in the next few years which will lead to hyperinflation. Thereafter we are likely to see a deflationary implosion. But if I will be wrong and severe deflation comes first, the world financial system will not survive. In that case, gold will become the only money available and therefore extremely valuable. Thus, physical gold will be the best protection both against inflation and deflation.”

Tuesday, October 4, 2016

Guccifer 2.0 Hacked Clinton Foundation

There is literally a folder in the root directory from the Clinton Foundation server which is spelled out as "Pay to Play".  If Hillary gets elected, Americans deserve what they will get.  A shit sandwich.

https://guccifer2.wordpress.com/2016/10/04/clinton-foundation/

http://www.zerohedge.com/news/2016-10-04/clinton-foundation-hacked-exposing-thousands-donor-databases-pay-play-folder

Saturday, October 1, 2016

Share This Chart: Countries Destroyed by Hillary

http://www.infowars.com/share-this-chart-countries-destroyed-by-hillary/

OECD Warns Fed, BOJ, ECB of Asset Bubbles, “Risks to Financial Stability,” Pinpoints US Stocks & Real Estate

http://wolfstreet.com/2016/09/21/oecd-warns-fed-boj-ecb-of-asset-bubbles-risks-to-financial-stability-pinpoints-us-stocks-real-estate/
Financial instability risks are rising, including from exceptionally low interest rates and their effects on financial assets and real estate prices.”
Low interest rates underpin widespread and substantial increases in asset prices, both internationally and across asset classes, which increases the likelihood and vulnerability of a sharp correction in asset prices.
A reassessment in financial markets of interest rates could result in substantial re-pricing of assets and heighten financial volatility even if interest rates were to remain below long-term averages.
This is as close to code speak by financial authorities that markets are about to crash.

Tuesday, September 27, 2016

The Secrets of Cheryl Mills

http://www.wsj.com/articles/the-secrets-of-cheryl-mills-1474932673

This Is Why the Middle Class Is Dying

http://bonnerandpartners.com/this-is-why-the-middle-class-is-dying/

Bridgewater Calculates How Much Time Central Banks Have Left

http://www.zerohedge.com/news/2016-09-27/bridgewater-calculates-how-much-time-central-banks-have-left
Ok fine, central banks are "running out of road", however at the same time they are terrified to rip (or even peel) the band-aid off. This has put the system in an unstable equilibrium: on one hand, central bankers - as even they admit - need to hand over the growth impulse over to governments, yet on the other hand, they terrified of even the smallest change to the status quo as they know they may undo some 7 years of "wealth effect" creation overnight.

How much longer can this charade continue?

While many would be quick to answer "indefinitely" that is not true, because with every bond, ETF or stock, purchased by central bankers they come to the point where they either monetize the entire lot, or they increasingly impair the functioning of the capital markets (just ask the dozens of marquee hedge funds that have shuttered in recent years).

Luckily, in a recent analysis, Ray Dalio's Bridgewater asked precisely this question, and even better, provided the answer to how much time is left until both the ECB and BOJ hit the limits on their existing programs. 

As the chart below shows, assuming no changes to existing programs, the ECB and the BOJ, the two central banks most actively monetizing debt currently, have 8 and 26 months respectively, if they do no changes to their programs. 

However, if incremental easing is layered on, like expanding the scope of their bond buying programs or purchasing equities even more aggressively, the total rises substantially. The final answer: 68 months, or just above 5 and a half years,  in the case of the ECB, were it to steamroll all political opposition and monetize virtually every possible bond (and 20% of the equity market), and 48 months, or 4 years, in the case of the BOJ.

The Donald Nailed It: “We Are In A Big Fat Ugly Bubble”

This is why both Democrats and establishment republicans do not like Trump.  Do you really want to understand global finance and central bank corruption?  Read this.

http://davidstockmanscontracorner.com/the-donald-nailed-it-we-are-in-a-big-fat-ugly-bubble/

Wells Fargo or the Federal Reserve: Who’s the Bigger Fraud?

http://ronpaulinstitute.org/archives/featured-articles/2016/september/26/wells-fargo-or-the-federal-reserve-who-s-the-bigger-fraud/

"America Is On Our Side": Al-Nusra Commander Tells German Press US Is Arming Jihadists

http://www.zerohedge.com/news/2016-09-26/america-our-side-al-nusra-commander-tells-german-press-us-arming-jihadists

Sunday, September 25, 2016

Elect The Warmonger Killary And You Will Have Victoria Nuland As Secretary Of State

It's interesting that two former officials of the Reagan administration, considered pro-military and defense spending, are openly criticizing former GOP Robert Kagan and Victoria Nuland, and portraying them as war-mongers.  This shows just how extremely hawkish Hillary Clinton is on foreign policy, as Kagan and Nuland are in her camp.  And people think Donald Trump is dangerous?  Perhaps, but Hillary could start World War III.

http://www.paulcraigroberts.org/2016/05/20/elect-the-warmonger-killary-and-you-will-have-victoria-nuland-as-secretary-of-state/

Something Odd Emerges When Fact Checking The "Fact Checkers"

http://www.zerohedge.com/news/2016-09-25/politifact-apparently-even-facts-are-subjective-and-based-party-affiliation

17 Nobel Laureates and 1200+ Economists Agree with Ben Carson re U.S. Fiscal Gap

The government is running a ponzi scheme, applying cash accounting to report their financials, instead of GAAP accrual accounting.

http://www.forbes.com/sites/kotlikoff/2015/05/13/17-nobel-laureates-and-1200-economists-agree-with-ben-carson-re-u-s-fiscal-gap/#281b4fe65931

Friday, September 23, 2016

More Troubling Evidence That Hillary Clinton Will Start WW3 – Part 2

http://libertyblitzkrieg.com/2016/09/20/more-troubling-evidence-that-hillary-clinton-will-start-ww3-part-2/
We’re going to war — either hybrid in nature to break the Russian state back to its 1990s subordination, or a hot war (which will destroy our country). Our citizens should know this, but they don’t because our media is dumbed down in its “Pravda”-like support for our “respectable,” highly aggressive government. We are being led, as C. Wright Mills said in the 1950s, by a government full of “crackpot realists: in the name of realism they’ve constructed a paranoid reality all their own.” Our media has credited Hillary Clinton with wonderful foreign policy experience, unlike Trump, without really noting the results of her power-mongering. She’s comparable to Bill Clinton’s choice of Cold War crackpot Madeleine Albright as one of the worst Secretary of States we’ve had since … Condi Rice? Albright boasted, “If we have to use force it is because we are America; we are the indispensable nation. We stand tall and we see further than other countries into the future.”
Hillary’s record includes supporting the barbaric “contras” against the Nicaraguan people in the 1980s, supporting the NATO bombing of the former Yugoslavia, supporting the ongoing Bush-Iraq War, the ongoing Afghan mess, and as Secretary of State the destruction of the secular state of Libya, the military coup in Honduras, and the present attempt at “regime change” in Syria. Every one of these situations has resulted in more extremism, more chaos in the world, and more danger to our country. Next will be the borders of Russia, China, and Iran. Look at the viciousness of her recent AIPAC speech (don’t say you haven’t been warned). Can we really bear to watch as Clinton “takes our alliance [with Israel] to the next level”? Where is our sense of proportion? Cannot the media, at the least, call her out on this extremism? The problem, I think, is this political miasma of “correctness” that dominates American thinking (i.e. Trump is extreme, therefore Hillary is not).
This is why I’m praying still for Bernie Sanders, because he’s the only one willing, at least in the name of fiscal sanity, to cut back on our foreign interventions, bring the troops home, and with these trillions of dollars no longer wasted on malice, try to protect the “homeland” by actually rebuilding it and putting money into its people, schools, and infrastructure. - Oliver Stone
Oliver Stone endorsing Bernie Sanders is not surprising, given his left leanings.  What is more surprising to convention wisdom is Stone's denunciation of Hillary Clinton.  He actually compares Trump as the more favorable candidate, despite Trump's flaws.  In hindsight, Stone's opinion of Hillary should be surprise anyone.  Her track record of missteps leaves some pretty heavy clues.

What If We're in a Depression But Don't Know It?

http://charleshughsmith.blogspot.com/2016/09/what-if-were-in-depression-but-dont.html

Russia Views Hillary Clinton as An “Existential Threat” to Peace

Hillary Clinton is the war hawk presidential candidate, not Donald Trump.  This article is spot on about US foreign policy in the middle east.  It doesn't even go into Ukraine's regime change and subsequent civil war, instigated by the US and NATO, not Russia.

http://theantimedia.org/russia-clinton-existential-threat-peace/

Tuesday, September 20, 2016

The Invisible American

http://www.gallup.com/opinion/chairman/195680/invisible-american.aspx
I've been reading a lot about a "recovering" economy. It was even trumpeted on Page 1 of The New York Times and Financial Times last week. 

I don't think it's true.

The percentage of Americans who say they are in the middle or upper-middle class has fallen 10 percentage points, from a 61% average between 2000 and 2008 to 51% today.

Ten percent of 250 million adults in the U.S. is 25 million people whose economic lives have crashed.

What the media is missing is that these 25 million people are invisible in the widely reported 4.9% official U.S. unemployment rate.

Only In California - Governor Jerry Brown Signs Bill To Regulate Cow Flatulence

http://www.zerohedge.com/news/2016-09-19/only-california-governor-jerry-brown-signs-bill-regulate-cow-flatulence

In yet another attack on California businesses, yesterday Governor Jerry Brown signed into law a bill (SB 1383) that requires the state to cut methane emissions from dairy cows and other animals by 40% by 2030.  The bill is yet another massive blow to the agricultural industry in the state of California that has already suffered from the Governor's passage of a $15 minimum wage and a recent bill that makes California literally the only state in the entire country to provide overtime pay to seasonal agricultural workers after working 40 hours per week or 8 hours per day.


"The California Air Resources Board wants to regulate cow emissions, even though its Short-Lived Climate Pollutant (SLCP) reduction strategy acknowledges that there’s no known way to achieve this reduction.
Among other things, compliance with the bill will likely require California dairies to install "methane digesters" that convert the organic matter in manure into methane that can then be converted to energy for on-farm or off-farm consumption.  The problem, of course, is that methane digesters are expensive and with California producing 20% of the country's milk we suspect that means that California has just passed another massive "food tax" on the country.

That said, many California dairies will probably elect to simply close down and move to other states as they did in 2015.  Per the California Department of Food and Agriculture, all but 1 of California's top 10 dairy producing counties saw a reduction in dairy production in 2015.   

China Now Dumping Unprecedented Amounts Of U.S. Treasuries

http://www.zerohedge.com/news/2016-09-19/panic-gasoline-buying-southeast-leads-massive-car-lines-gas-shortages-price-gouging

Saturday, September 17, 2016

Friday, September 16, 2016

Friday, September 2, 2016

"Tremendous Ripple Effects" - Retailers Demand Bailout After Hanjin Collapse Paralyzes Trade

This could be the black swan that causes commerce to collapse, earnings to nose dive, and markets to plummet.  At the very least, it will be painted as a disaster, justifying an imminent bursting of the bubble.

http://www.zerohedge.com/news/2016-09-02/ripple-effect-could-be-tremendous-retailers-demand-government-bailout-after-hanjin-c

The "Secret Sauce" of the Byzantine Empire: Stable Currency, Social Mobility

http://charleshughsmith.blogspot.com/2016/08/the-secret-sauce-of-byzantine-empire.html

Deutsche Bank Refuses Delivery Of Physical Gold Upon Demand

There are no two ways about it.  This is a commercial signature failure to deliver physical gold--an outright default from Deutsche Bank.  The price of physical gold should be soaring right about now.

http://www.zerohedge.com/news/2016-08-31/deutsche-bank-refuses-delivery-physical-gold-upon-demand

Monday, August 29, 2016

Yellen: Fed Should Explore Purchasing ‘Broader Range of Assets’

Lost amidst the normal gobbledigook double speak by Fed Chair Janet Yellen at the Jackson Hole Summit last week, was a short passage which largely went unnoticed by the financial pundits more interested in short-term interest rate fluctuations (to hike or not to hike).  Here is the passage (boldface emphasis is mine):

On the monetary policy side, future policymakers might choose to consider some additional tools that have been employed by other central banks, though adding them to our toolkit would require a very careful weighing of costs and benefits and, in some cases, could require legislation. For example, future policymakers may wish to explore the possibility of purchasing a broader range of assets. Beyond that, some observers have suggested raising the FOMC’s 2 percent inflation objective or implementing policy through alternative monetary policy frameworks, such as price-level or nominal GDP targeting. I should stress, however, that the FOMC is not actively considering these additional tools and policy frameworks, although they are important subjects for research.
This key message was obscurely packed into a bunch of esoteric back filling, but more importantly hints that helicopter money is coming.  It is the last resort for desperate central banks trying to re-inflate the economy in a deflationary environment which every Keynesian economist fears.  "Broader range of assets" indicates buying not just US Treasury bonds (quantitative easing), but also equities, corporate bonds, real estate, and eventually leads to giving away free tax deductions to the masses.  Money and credit figuratively rain down at every level:  household, corporate, government.  Hence, the term "helicopter money" is coined due to the massive liquidity injected into the economy.

The problem, of course, is liquidity is not wealth.  Stimulus of this sort is nothing more than legalized counterfeiting, and no wealth is created...but that's for another discussion.

Helicopter money also ensures hyperinflation. The ol' "be careful what you wish for (targeted inflation rate)--you may get it (unintended hyperinflation)" rings true.

http://blogs.barrons.com/incomeinvesting/2016/08/26/yellen-fed-should-explore-purchasing-broader-range-of-assets/

Shock Interview: New Black Panther Leader DESTROYS Democrat Politicians: “We’re Being Pimped Like Prostitutes And They’re The Big Pimps Pimping Us Politically”

http://www.shtfplan.com/headline-news/shock-interview-new-black-panther-leader-destroys-democrat-politicians-were-being-pimped-like-prostitutes-and-theyre-the-big-pimps-pimping-us-politically_08282016

Tuesday, August 23, 2016

Socialism: The World's Greatest Generator of Poverty

https://mises.org/blog/socialism-worlds-greatest-generator-poverty

How The Fed's Facebook PR Campaign Went Terribly Wrong

http://www.zerohedge.com/news/2016-08-23/how-feds-facebook-pr-campaign-went-terribly-wrong

Something "Unexpected" Happened When Seattle Raised The Minimum Wage

Wow, what a surprise .  The University of Washington concluded that raising minimum wages in Seattle "lowered employment rates of low-wage workers".

http://www.zerohedge.com/news/2016-08-23/something-unexpected-happened-when-seattle-raised-minimum-wage
...the Federal Reserve Bank of San Francisco that finds that "higher minimum wage results in some job loss for the least-skilled workers—with possibly larger adverse effects than earlier research suggested."
Gee, the academics and intelligentsia are finally coming to the same conclusions the rest of us peons came to years ago.

FBI Reports Linking Hillary To Vince Foster "Suicide" Disappear From National Archives

http://www.zerohedge.com/news/2016-08-23/fbi-reports-linking-hillary-vince-foster-suicide-go-missing-national-archives

Follow The Money Trail For Source Of "Russian Threat" Paranoia

http://www.zerohedge.com/news/2016-08-22/follow-money-trail-source-russian-threat-paranoia

US National Debt Clock

More people are becoming aware of the huge US debt bomb.  But what they aren't aware of is the US Treasury has issued so many USDollars that the prices for gold and silver should be astronomically higher, based on the money supply.

If not for the artificial suppression of precious metals prices by the monetary authorities and bullion banks acting on behalf of central banks, gold and silver should be $8,108/oz. and $896/oz., respectively.


http://www.usdebtclock.org/

Thursday, August 18, 2016

ALERT: Early Signs The Public Is Becoming More Involved In The Gold Market

I'm stoked that mainstream retail investment firm Charles Schwab issued a fairly comprehensive letter on gold investments.  However, it's understandable they offer information that is equities-centric, as they sell mostly stocks and bonds to retail investors.  In my opinion, they don't delve deep enough into the hidden dangers of un-allocated ETF's.  They don't even address the potential of markets freezing up, or issue a warning about counterparty risk.  Probably because Schwab is part of the global financial system and would be adversely impacted by a meltdown just like any other financial institution.

For instance, what happens to client accounts when investment firms collapse.  Would direct registration of share certificates be the only reliable means of owning shares of a publicly-traded company?

Also, the article barely mentions the possession of physical gold bullion as the safest vehicle of ownership.  Again, this omission is not surprising.

http://kingworldnews.com/alert-early-signs-the-public-is-becoming-more-involved-in-the-gold-market/


How the Global Elites Screws Peons (While Media Fools Cheer)

https://mishtalk.com/2016/08/17/how-the-global-elites-screws-peons-while-media-fools-cheer/

Sunday, August 14, 2016

We Are Now Only Months Away From The Worst Global Crisis In History

http://kingworldnews.com/we-are-only-months-away-from-the-worst-global-crisis-in-history/

Chicago Records Deadliest Day In 13 Years As City Spirals Out Of Control

http://www.zerohedge.com/news/2016-08-14/chicago-records-deadliest-day-13-years-city-spirals-out-control

Finally, despite some of the most restrictive gun laws in the country, 87% of homicides were committed with firearms, up from 79% in 2010.  So how could the city that has the toughest gun laws in the country, laws described as the "closest they could get legally to a ban without a ban," also have some of the highest gun-related homicide rates?  Could it be, that criminals looking to use weapons for violence have a lower propensity to follow laws and that by banning guns you're really just taking them out of the hands of law-abiding citizens that wouldn't have used them for violence anyway?

Friday, August 12, 2016

BIS Intervenes In The Gold Market To Aid Battered Gold Shorts!

FYI, the Bank for International Settlements (BIS) is the central bank of central banks.  They pretty much dictate central bank policies around the globe, including the ECB (European), BOE (England), BOJ (Japan), Bundesbank (Germany), PBOC (China), and the Fed (United States).  They've been known to intervene in gold markets in order to "manage" the price down.

http://kingworldnews.com/alert-bis-intervened-in-the-gold-market-to-assist-battered-gold-shorts/

Thursday, August 11, 2016

Erdogan Threatens To Abandon US Dollar In Trade With Russia

I predict US mainstream media and the CIA will now label Erdogan a terrorist who must be taken out.  Any sovereign government leader looking for alternatives to the USDollar for cross-border trade is considered an enemy of the US State.  See Hussein and Gaddafi, former US allies before their untimely demise.  Were they evil dictators?  Absolutely.  But they were originally put into power by the US and the CIA, until they started entertaining alternatives to the petrodollar as payment for crude oil.

Also see Russia and China.  Removing their government from power is another proposition.  However, the neocon warmongers are beating the drums of war.

http://www.zerohedge.com/news/2016-08-11/erdogan-threatens-abandon-us-dollar-trade-russia

One simple reason why gold can still jump 50%

https://www.sovereignman.com/trends/one-simple-reason-why-gold-can-still-jump-50-20083/

Is The Gold Market Really Manipulated?

http://kingworldnews.com/is-the-gold-market-really-manipulated/

This trend tells you everything you need to know about America’s future

https://www.sovereignman.com/trends/this-trend-tells-you-everything-you-need-to-know-about-americas-future-20081/

Secret Pentagon Report Reveals US "Created" ISIS As A "Tool" To Overthrow Syria's President Assad

Any and all wars are about a land and sea grab of resources, and with the USDollar as the global reserve currency--it's all about the dollar.

http://www.zerohedge.com/news/2015-05-23/secret-pentagon-report-reveals-us-created-isis-tool-overthrow-syrias-president-assad

Obamacare On "Verge Of Collapse" As Premiums Set To Soar Again In 2017

http://www.zerohedge.com/news/2016-08-11/obamacare-verge-collapse-premiums-set-soar-again-2017

Wednesday, August 10, 2016

James Grant: Negative Interest Rates Will End — Badly

Pundits and laypeople alike are unable to grasp why deteriorating true economic indicators and profits are driving equities and bond markets to all-time highs (and record low or negative interest rates).

Conventional wisdom states that declining corporate profits should drive stock prices down.  Yet, equities keep achieving all-time highs. 

Perhaps, the answer is stored in the question.  Due to record low and negative interest rates, stock markets will soar as the cost of borrowing is at all-time lows.  If this sounds like a chicken-or-egg dilemma, it is.  How long this monetary rubber band can be stretched is the essential question--because it will snap at some point.

The rhetorical question can also be answered with possible solutions to this conumdrum.  If bonds continue to yield negative rates, cash becomes more valuable.  The countervailing effect is if negative rates drive up inflation, cash becomes less valuable.

What else is left if inflation causes interest rates to reverse and rise?  Financial markets would plummet if yields rise.  Physical, tangible assets become the currency of last resort.

https://blogs.cfainstitute.org/investor/2016/08/08/james-grant-negative-interest-rates-will-end-badly/

Wednesday, August 3, 2016

Bill Gross Talks "Sex", Answers "Honestly" What Happens When The Financial System Breaks Down

When the two biggest bond investors are shunning equities and bond markets, and putting their money into tangible assets like gold, it's time to take notice.  Fixed-income markets dwarf equities, and bond investors are better predictors of the economy--even if they don't make the financial headlines like stock pickers do.

Bond investors are often labeled the smart money because they have a better track record of foretelling economic downturns, as equities analysts are understandably polyannish.

Jeff Gundlach and Bill Gross have recently turned bearish on traditional financial assets and bullish on gold.  A contrarian may hesitate in following these iconic money managers.  But sometimes investors can out-think themselves.  While these two bond kings have influence on Wall Street (despite being headquartered in southern California), the average Joe wouldn't recognize these two star fund managers from Bernie Madoff.  And that's a good thing if one is a contrarian.

http://www.zerohedge.com/news/2016-08-03/bill-gross-talks-sex-answers-honestly-what-happens-when-financial-system-breaks-down


Is A Ban On Gold Ownership Coming?

http://kingworldnews.com/is-a-ban-on-gold-ownership-coming/

Bitcoin Price Crashes After Exchange Admits Security Breach, Over $60 Million Stolen

I was initially enthused by Bitcoin as an anti-dollar crypto-currency, but after researching its cyber-security issues, I became suspicious of Bitcoin's creation.  My suspicion was Satoshi Nakamoto, the alleged mythical creator of Bitcoin (whether one person or a group of hackers), could be a sub-unit of the US Treasury.

The holes in the security of Bitcoin, and the non-anonymity of the block chain header--which tracks all transactions, hinted towards a backdoor created by financial authorities to track nefarious Bitcoin holders.

Is this conspiratorial?  Yes, but who benefits by providing an alternative to the USDollar, yet still maintaining confidence in the dollar?  If gold is an undesirable alternative to the dollar, Bitcoin could be a welcome supplement to dollar hegemony for the financial status quo.

Due to the obvious risks of holding Bitcoin (it's electronic, it can be lost, it can be stolen, and competitive crypto-currencies exist--undermining its stated goal of scarcity), I subsequently couldn't endorse Bitcoin or any other crypto-currencies.

The fall of Mt. Gox raised my suspicion.  This latest theft of Bitcoin confirms my skepticism.  The fallout of this latest electronic theft is yet to be determined.  Who is legally liable?  Will insurers guarantee the losses?

At the end of the day, Bitcoin is an electronic entry, much like a bank account.  The difference is banks don't have the reserves to back up their deposits due to fractional reserve banking, which is hugely problematic despite reassurances by the financial authorities.

Ownership is 100% possession, so the ultimate safe haven currencies are still physical gold and silver.  This has been true for over 6000 years, and will continue to hold true.

http://www.zerohedge.com/news/2016-08-02/bitcoin-crashes-after-exchange-admits-security-breach

Boomers Again? What Another “Scorched Earth Generation” President Means For Gold - Peter Diekmeyer

https://www.sprottmoney.com/blog/boomers-again-what-another-scorched-earth-generation-president-means-for-gold.html

Peter Schiff: Time Is Running Out, “Crisis Worse Than 2008 Coming”

http://www.shtfplan.com/headline-news/peter-schiff-time-is-running-out-crisis-worse-than-2008-coming_07282016

Monday, August 1, 2016

James Turk – Is History About To Repeat In The Silver Market? Plus One Of The Most Stunning Charts Of The Last Decade

Markets zig and they zag--they don't move in straight lines.  If one recalls in the book and movie The Big Short, the protagonists made the right bet in shorting (e.g. betting against) the fraudulent subprime mortgage boom in 2006.  However, they initially lost a ton of money when loans were defaulting, which should have generated profits for their short positions.  Instead, because the secondary derivatives (or "shadow") markets were grossly manipulated and illiquid, the bearish short positions against the mortgage-backed securities (CDO's) were tanking initially.

Fortunately for the protagonists, the credit default swaps (a CDS is an insurance contract betting  against the credit debt obligations) regained sanity in 2008 and soared in value when the deluge of mortgage defaults accelerated.  The underlying real estate industry took a nose dive nationwide. The CDS holders profited in the billions, far outweighing their previous losses.  In summary, the speculators (the big shorts) bet correctly, but they were early, before being proven right and profiting handsomely in the end.

One could debate that manipulated markets take time to cleanse themselves before true price discovery mechanisms bring supply and demand dynamics to rational levels.  That's theoretical.  But the pragmatic point is that speculators should have enough liquidity to outlast the transitory cycles when markets move against their positions.  In the aftermath, they will profit from the inevitable outcomes.  Profits come from being right in both direction and timing.

Likewise, for 4-plus years, precious metals have been taking a beating.  However, against a backdrop of 6000, 100, 45, or 15 years, gold and silver have outperformed equities and bonds.  More recently, the two noble metals have outperformed other assets in 2016.

Precious metals provide a counter-balance to traditional financial assets, and tend to outperform when there is distress in markets.  With equities particularly, they move up on an escalator, but plummet down violently in an elevator.  For example, the tech-heavy NASDAQ index lost 80% between its 2000 peak before bottoming out in 2003.  The S&P 500 lost approximately half its value between the 2007 peak and the 2009 bottom, when Fed Chairman Bernanke stepped in with the bank bailouts in 2008 and QE in 2009. 

Accumulators accumulating the metals on the way down have brought their average cost down as well.  And now that the precious metals asset class has rebounded, the paper profits have risen.

But that's not the point of accumulating physical precious metals: to garner "profits".  They are stores of value, not trade-able securities.  They are true buy-and-hold portfolio hedges, protecting holders against inflation--and deflation, when all other assets have uncertainty attached to them.


Yes, I mention deflation because while cash is king understandably in deflationary times, precious metals are also counter-intuitively valuable due to their durability, divisibility, portability, acceptability, and uniformity.  For these reasons, cash is a viable currency.  The fact that until now, the USDollar is also the global reserve currency creates demand for it, rendering it even more valuable.

But the winds of geopolitical change are upon us, as the dollar's perch as the reserve currency becomes increasingly perilous.  Precious metals outshine fiat currency as they are also solid stores of value, because they are limited in supply, and therefore cannot be debased by reckless currency creation from central bankers.

And be careful with unallocated gold and silver ETF's as they are merely paper promises to deliver precious metals.  They are not sufficiently backed by physical inventory.

Having said that, patience is a virtue, and the time for gold and silver to shine is upon us and will only get brighter going forward.  Continue accumulating physical precious metals.  Better yet, buy the price dips when they occur.

http://kingworldnews.com/james-turk-will-history-repeat-in-the-silver-market/


U.S. Military Adds Jeff Bezos and Cass Sunstein to Pentagon’s Defense Innovation Advisory Board

http://libertyblitzkrieg.com/2016/08/01/u-s-military-adds-jeff-bezos-and-cass-sunstein-to-pentagons-defense-innovation-advisory-board/

Conspiracy Theories, According to the Elite

This is rather chilling.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1084585

Conspiracy Theories


Cass R. Sunstein


Harvard Law School

Adrian Vermeule


Harvard Law School

January 15, 2008

Harvard Public Law Working Paper No. 08-03
U of Chicago, Public Law Working Paper No. 199
U of Chicago Law & Economics, Olin Working Paper No. 387

Abstract:     
Many millions of people hold conspiracy theories; they believe that powerful people have worked together in order to withhold the truth about some important practice or some terrible event. A recent example is the belief, widespread in some parts of the world, that the attacks of 9/11 were carried out not by Al Qaeda, but by Israel or the United States. Those who subscribe to conspiracy theories may create serious risks, including risks of violence, and the existence of such theories raises significant challenges for policy and law. The first challenge is to understand the mechanisms by which conspiracy theories prosper; the second challenge is to understand how such theories might be undermined. Such theories typically spread as a result of identifiable cognitive blunders, operating in conjunction with informational and reputational influences. A distinctive feature of conspiracy theories is their self-sealing quality. Conspiracy theorists are not likely to be persuaded by an attempt to dispel their theories; they may even characterize that very attempt as further proof of the conspiracy. Because those who hold conspiracy theories typically suffer from a crippled epistemology, in accordance with which it is rational to hold such theories, the best response consists in cognitive infiltration of extremist groups. Various policy dilemmas, such as the question whether it is better for government to rebut conspiracy theories or to ignore them, are explored in this light.

The Burrito Index: Consumer Prices Have Soared 160% Since 2001

http://www.peakprosperity.com/blog/99392/burrito-index-consumer-prices-soared-160-2001

Hillary’s Latest Headache: Skolkovo

http://www.zerohedge.com/news/2016-08-01/hillary%E2%80%99s-latest-headache-skolkovo

500 Years Of Stock Panics, Bubbles, Manias, & Meltdowns (In 1 Simple Chart)

http://www.zerohedge.com/news/2016-07-31/500-years-stock-panics-bubbles-manias-meltdowns-1-simple-chart
Click on Image to Enlarge
 

THE DEMOCRATIC PARTY NO LONGER EXISTS

http://www.paulcraigroberts.org/2016/07/29/the-democratic-party-no-longer-exists/

Friday, July 29, 2016

The Central Issue in the U.S. Presidential Campaign

Many Americans are stupid, but most aren't idiots.  They're just gullible and willfully blind.

http://thesaker.is/the-central-issue-in-the-u-s-presidential-campaign/

The Power of “Nyet”

Yes, this blogger has a Russian bent, but his propaganda is closer to reality than the neocon Washington narrative.

http://cluborlov.blogspot.gr/2016/07/the-power-of-nyet.html

Thursday, July 28, 2016

"Short Everything That Guy Has Touched" - San Fran's Lending Standards Put The Last Housing Bubble To Shame

http://www.zerohedge.com/news/2016-07-27/short-everything-guy-has-touched-san-fran-lending-standards-put-last-housing-cycle-s

Will Any Future POTUS Matter (Other Than Launching More Wars)?

http://charleshughsmith.blogspot.com/2016/07/will-any-future-potus-matter-other-than.html

US government pays $475,000 for illegally searching woman’s vagina

https://www.sovereignman.com/trends/us-government-pays-475000-for-illegally-searching-womans-vagina-20033/

EXCLUSIVE: IRS Launches Investigation Of Clinton Foundation

Ummm, regarding those missing emails...

http://dailycaller.com/2016/07/26/exclusive-irs-launches-investigation-of-clinton-foundation/

If Everything Is So Great, Then Why Do Two-Thirds Of Americans Say The Country Is On The Wrong Track?

http://endoftheamericandream.com/archives/if-everything-is-so-great-then-why-do-two-thirds-of-americans-say-the-country-is-on-the-wrong-track

Paul Craig Roberts – We Are About To Witness The End Of The World As We Know It

http://kingworldnews.com/paul-craig-roberts-we-are-about-to-witness-the-end-of-the-world-as-we-know-it/

Wednesday, July 27, 2016

Monday, July 25, 2016

Obama's "Deeply Disappointed" Half-Brother Will Vote Trump Because "He Speaks From The Heart"

http://www.zerohedge.com/news/2016-07-24/obamas-deeply-disappointed-half-brother-will-vote-trump-because-he-speaks-heart
He says he started the charity in 2008 because he wanted to make a difference in the family’s hardscrabble village in Kenya.

But the charity came under fire when The Post revealed in 2011 that it was an off-the-books operation that hadn’t registered with the state of Virginia or, as it claimed, had tax-exempt status from the IRS.

Shortly after The Post report, the IRS gave its stamp of approval, leading to speculation that the president had intervened.

ALERT: James Turk Issues Warning About Action In Gold & Silver Markets

http://kingworldnews.com/alert-james-turk-issues-warning-about-action-in-gold-silver-markets/

Derivatives Are Now 15 Times World GDP But Here Is An Even More Frightening Problem

http://kingworldnews.com/derivatives-are-now-15-times-world-gdp-but-here-is-an-even-more-frightening-problem/

Sunday, July 24, 2016

Democrats Accuse Russia Of Hacking DNC Server To Help Donald Trump

The lies on top of lies covering up the fact that Hillary Clinton's emails being hacked isn't even being covered up anymore, as the corruption is so obvious now.   So obvious that campaign officials aren't even trying to cover it up.  They're redirecting it to Trump along false premises.  It would be comical, but it's tragic that so many millions are still so willfully blind.

This is by no means an endorsement for Trump, as his character flaws are fairly evident as well.  This country deserves Clinton because a cleansing reset will happen sooner than later under her watch. Let's just get it over with and clean house in Washington.  And it's got nothing to do with an election.  The 2016 election is just another mindless and futile exercise in sovereignty.  The real test is whether there will be a 2020 election.  Because the pitchforks will be out by then.

http://www.zerohedge.com/news/2016-07-24/democrats-accuse-russia-hacking-dnc-server-help-donald-trump

If You Can’t Touch It, You Don’t Own It - Jeff Thomas

https://www.sprottmoney.com/blog/if-you-cant-touch-it-you-dont-own-it-jeff-thomas.html

Saturday, July 23, 2016

US War In Afghanistan Is Fueling Global Heroin Epidemic & Enabling The Drug Trade

Thanks Bush.  Thanks Obama.  Thanks Clinton.  And thanks to many other neocons.

http://www.mintpressnews.com/global-war-terror-created-heroin-epidemic-us-afghanistan/218662/

Hillary Says Trump Is Most Dangerous Presidential Candidate Ever – But She Is

http://www.thedailybell.com/news-analysis/hillary-says-trump-is-most-dangerous-presidential-candidate-ever-but-she-is/

"Policymakers Have Been Calling A 'Depression' A 'Recovery' For Nearly A Decade"

This is why protests, violence, and social unrest will accelerate.  There has been no "recovery", despite the narrative of the powers-in-charge.

http://www.zerohedge.com/news/2016-07-23/policymakers-have-been-calling-depression-recovery-nearly-decade

End Of An Era: The Rise And Fall Of The Petrodollar System

This is a long, but good read on oil, gold, petrodollar, geopolitics, and currency shifts.   However, it doesn't address the inevitable effects and undesirable conclusion.  The USDollar losing its status as the global reserve currency results in loss of purchasing power for American consumers and hyperinflation.

http://www.acting-man.com/?p=45850

Wednesday, July 20, 2016

Potential Crisis Triggers Continue To Pile Up In 2016

http://www.alt-market.com/articles/2958-potential-crisis-triggers-continue-to-pile-up-in-2016

Prominent Gold Skeptic Willem Buiter Says "Gold Looks Pretty Good"

Buiter, like Greenspan, is a punk.  After bashing gold 2 years ago, he now articulates its monetary value.  Both he and Greenspan are flip flopping, although Buiter is insufferable.  Even though he is now right, he's still wrong on some of the reasons for why he is bullish on gold.  At least Greenspan is somewhat predictable, understanding the value of gold before and after holding his position as Fed Chairman.  It was during his tenure as Fed Chair that Greenspan was predictably sour on gold.

With Buiter, he's acknowledging his ignorance for gold, and yet this clown is paid millions to be Citi's Chief Economist?  Here's a thought:  if this incredulous gold skeptic is now reversing his opinion, perhaps this foretells the next big leg up in gold and silver.  Are the financial elite panicking and ready to throw in the towel?

http://www.zerohedge.com/news/2016-07-19/prominent-gold-skeptic-willem-buiter-says-gold-looks-pretty-good

If Trump Tries to Remove ISIS, Will He Be Removed?

http://www.thedailybell.com/news-analysis/if-trump-tries-to-remove-isis-will-he-be-removed/

Tuesday, July 19, 2016

Silver jumps 50 percent, but beware the devil's metal

This Reuters "article" is filled with inaccuracies and half-truths.  The authors paint a discouraging picture on silver.  My contrarian disposition says "buy."

http://www.reuters.com/article/us-silver-investment-idUSKCN0ZU07K

America Has Become a “Parasitocracy”

http://www.acting-man.com/?p=45879

Friday, July 15, 2016

Fed Cornered: Core CPI Jumps Near 4 Year Highs As Rent Rises At Fastest Rate In 9 Years

As predicted, the Fed is cornered.  In a "Be careful what you wish for" scenario--the Fed has been desperately clamoring for higher inflation, as disinflation is mistakenly articulated as deflation, a softer term for depression, which is an existential threat to the financial authorities.  According to pundits, inflation equals GDP growth, which means the bureaucrats get to keep their jobs.

However, to the average consumer, higher prices equates to lower purchasing power.  Perhaps the computer industry best illustrates how lower prices--not higher prices, catalyze booming economies.  On the other hand, higher costs lead to lower profits, layoffs, and store closures.  See the big box retailers as counterexamples of booming economies.

Now that inflation is on the rise, the Fed now has to scramble because fighting inflation requires raising interest rates.  But due to exploding debt (at the government, consumer, and corporate levels), raising interest rates would bankrupt not just America, but globally, thereby crashing financial markets and destroying wealth.  This is the financial cul-de-sac which sound money advocates have been warning against.  Reckless creation of fiat currency and credit markets does result in tears.

Expect more financial crises and social unrest, as billions struggle to make ends meet.

http://www.zerohedge.com/news/2016-07-15/fed-cornered-core-cpi-jumps-near-4-year-highs-rent-rises-fastest-rate-9-years


Tokyo Commodity Exchange to launch Physical Gold Market

Even the Japanese, who have historically low holdings in precious metals, are going physical.

https://www.leaprate.com/2016/07/tokyo-commodity-exchange-to-launch-physical-gold-market/

Detonation of the LBMA - It Wasn't Brexit, Governor Carney

The false narrative propagated by the powers-that-be is the Brexit will cause distress in financial markets.  The truth is the unraveling of the fraudulent Ponzi schemes within the LBMA and Bank of England will cause markets to erupt.

http://www.safehaven.com/article/41906/detonation-of-the-lbma-it-wasnt-brexit-governor-carney

Deutsche Bank Settles Silver, Gold Price-Manipulation Suits

No one goes to jail.  And the biggest perps aren't even indicted.

http://www.bloomberg.com/news/articles/2016-04-13/deutsche-bank-settles-silver-price-fixing-claims-lawyers-say

Tuesday, July 5, 2016

The Gold Standard: Friend of the Middle Class

https://antoniusaquinas.com/2016/07/05/the-gold-stanard-friend-of-the-middle-class/

Rudy Giuliani: "Today Hillary Clinton Was Put Way Above The Law"

http://www.zerohedge.com/news/2016-07-05/rudy-giuliani-today-hillary-clinton-was-put-way-above-law

Peak FBI Corruption? Meet Bryan Nishimura, Found Guilty For "Removal And Retention Of Classified Materials"

http://www.zerohedge.com/news/2016-07-05/peak-fbi-corruption-meet-bryan-nishimura-found-guilty-removal-and-retention-classifi

Forget The Pullback And Look At These Stunning Price Targets For Gold & Silver

The article links to a great resource, the shadowstats.com Inflation Calculator, which provides pricing information based on official and unofficial inflation data, a so-called price deflator.

The input on the official price of gold is slightly variant (but the correct messaging is spot on), as the author inputs an official  price of $20.79 in May 1913 (the same year the Fed was created, not so coincidentally).  The actual official price of gold back then was $20.67, while the average price of gold based on the London Fix was $20.64, according to kitco.com <click here>.

The input on the official price of silver also differs, according to whether one uses the official price or average price for 1913.  The unofficial price of silver based on the London fix was $0.58, according to kitco.com <click here>.  The author uses an official price of $1.29, which may be accurate (there is very little data on the "official" price of silver, which presumably was set by the US Treasury).

Bottom-line:  the article points to the Inflation Calculator which indicates how much the USDollar has been debased by perpetual currency and credit creation from the Fed and US Treasury, as reflected in the prices of gold and silver.

Interestingly enough, the Minnesota Fed provides a similar calculator, named "What's a Dollar Worth?" on their website, based on official CPI data <click here>.

http://kingworldnews.com/forget-the-pullback-and-look-at-these-stunning-price-targets-for-gold-silver/