Dark Years And Fourth Turning

By Egon von Greyerz – Re-Blogged From Gold Eagle

In an ephemeral world, few things survive. I am not talking about species or human beings whose existence on earth is also transitory. Instead I am referring to social and financial systems which are now coming to an end.

In July 2009 I wrote an article called The Dark Years Are Here. It was reprinted again in September 2018.

Here is an extract from my original article:

“The Dark Years will be extremely severe for most countries both financially and socially. In many countries in the Western world there will be a severe depression and it will be the end of the welfare state. Most private and state pension schemes are also likely to collapse. It will be a worldwide depression but some countries may only have a deep recession. There will be famine, homelessness and misery resulting in social as well as political unrest. Different type of government leaders and regimes are likely to result from this.
How long will the Dark Years last? There is a book called ”The Fourth Turning” written by Neil Howe.

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Inflation By Fiat

By Michael Pento – Re-Blogged From Silver Phoenix

The Fed has now officially changed its inflation target from 2%, to one that averages above 2% in order to compensate for the years where inflation was below its target. First off, the Fed has a horrific track record with meeting its first and primary mandate of stable prices. Then, in the wake of the Great Recession, it redefined stable prices as 2% inflation—even though that means the dollar’s purchasing power gets cut in half in 36 years. Now, following his latest Jackson Hole speech, Chair Powell has adopted a new definition of stable prices; one where its new mandate will be to bring inflation above 2% with the same degree and duration in which it has fallen short of its 2% target.

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Inflation — Running Out Of Road

By Alasdair Macleod – Re-Blogged From Gold Eagle

If you think that price inflation runs at about 1.6% you have fallen for the BLS’s CPI myth. Two independent analysts using different methods — the Chapwood Index and Shadowstats.com — prove that prices are rising at a far faster rate, more like 10% annually and have been doing so since 2010.

This article discusses the consequences of price inflation suppression, particularly in the light of Jerome Powell’s Jackson Hole speech when he downgraded the importance of price inflation in the Fed’s policy objectives in favour of targeting employment.

It concludes that the reconciliation between the BLS CPI figure and the true rate of price inflation is inevitable and will be catastrophic for the Fed’s policy of suppressing interest rates, its maximisation of the “wealth effect” of inflated financial asset prices, and for the dollar itself.

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Trampoline Cliff Diving

By Michael Pento – Re-Blogged From Pentoport

We start this week’s commentary with some rather depressing news from Reuters:

The ratio of downgrades to upgrades in the credit ratings of leveraged loans has spiked to a record level, five times above that hit during the last global financial crisis, reflecting the unprecedented stress in risky assets due to the coronavirus pandemic. Leveraged loans, which are loans taken out by companies that have very high levels of debt, usually with non-investment grade credit ratings–tend to be used by private equity firms as a way to fund acquisitions of such companies. The U.S. leveraged lending market has grown to more than $2 trillion, up 80% since the early 2010s, according to credit rating agency Moody’s Investors Service.

Add in the $1.2 trillion junk bond market and the $3.2 trillion in BBB debt, which is just barely above the junk category, and you end up with nearly six and a half-trillion dollars’ worth of corporate debt that is primed for varying degrees of default. The catalyst for this default is the worst economy since the Great Depression.

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Fiercest Economic Collapse In History Is Best Month For Stock Market

By David Haggith – Re-Blogged From Silver Phoenix

It was the best of times, it was the worst of times. April closed as the best month for the US stock market since the V-shaped recovery that followed the Black Monday stock market crash of 1987. April also delivered the deepest, broadest economic collapse of any month in history.

The economic collapse was simultaneously global. What is written here about the US can pretty well be said for all nations in the world. The collapse crushed jobs, personal income, consumer spending, consumer sentiment, car sales, and general economic activity more than any month in the history of the nation. Some of those sharpest declines happened in March, but April relentlessly drove to to greater depths. But stocks rose.

Where Will The US Stock Market Crash End?

As the carnage continues with stocks now ignoring anything the Fed throws at them — and the Fed has pretty well thrown everything it has used in the past and is now moving into bailout mode — where is the US stock market crash likely to to stop falling? So far, it’s been limit-down all the way.

Before posing “The Fed is Dead” later today, I wanted to rush this out because I can get it published quickly:

The above graph shows two reasonable targets that I would suggest.

How Dead Is The Fed?

By David Haggith – Re-Blogged From Silver Phoenix

You can only be so dead, and that’s just “plain dead.” But there is also Feddy Krueger dead. The kind of dead that keeps on happening like a demonic death that won’t stay dead. It is in that nightmarish Elm St. light that I’m going to review the Federal Reserve’s death.

It’s happened via face-plant failures over past month that I’m going to lay out to show how savagely the Fed is dying a perpetual-motion death.

Let me pause to assure you, I’m not saying Feddy Krueger is down for the count and will not rise again. He always revives by inventing powers over market death never seen before. Feddy will return with extraordinary and permanent powers beyond those he once used to bring counterfeit salvation from the Great Recession. Feddy gets more empowered by scared government politicians each time the economy crashes. You can’t get rid of Feddy. At least, it seems.

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A Week Of Stock Market Turmoil With More To Come

By Mark J Lundeen – Re-Blogged From Gold Eagle

Can you believe it? After a week where the Dow Jones saw four days of extreme market volatility (Dow Jones 2% days), and the NYSE saw two days of extreme market breadth (NYSE 70% A-D days), the Dow Jones closed UP 455 points from last week’s close. After all that the Dow Jones in its Bear’s Eye View Chart below is little changed from last week.

Looking at the Dow Jones in its daily bars (next), it’s very apparent how after Friday, February 21st someone (Mr Bear?) changed the rules. From October 1st to February 21st average daily volatility for the Dow Jones was only 0.50%. In the past two weeks it has leapt to 3.01%. And though the Dow Jones closed up 455 for the week, looking at the chart below one thing comes to my mind – Mr Bear is once again hard at work.

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Mr Bear Took His Pound Of Flesh From The Stock Market This Week

By Mark J Lundeen – Re-Blogged From Gold Eagle

At last week’s close, with the Dow Jones’ BEV value at -1.89%, I said I’d remain long-term bullish as long as the Dow Jones stayed above its BEV -7.5% line, or even if it remained in single-digits BEV values.  As it turned out I could only remain long-term bullish until Wednesday of this week with the Dow Jones closing at a BEV of -8.78%.  Thursday the Dow Jones closed with a BEV of -12.81%, and Mr Bear’s slaughter of the innocents on Wall Street continued on Friday, closing the week with the Dow Jones seeing a BEV of -14.02%.

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Will Corona Virus Lead To A Gold Standard?

By Alasdair Macleod – Re-Blogged From Gold Eagle

Even before the coronavirus sprang upon an unprepared China the credit cycle was already tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.

The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds issued by bankrupt governments at wildly excessive prices. A recession turned by the coronavirus into a fathomless slump will lead to a synchronised explosion of debt issuance for which there are no genuine buyers and can only be monetised.

The adjustment to reality will be catastrophic for government finances, and their currencies. This article explains why the collapse in overpriced financial assets and fiat currencies is likely to be rapid, perhaps giving ordinary people in some jurisdictions an early prospect of a return to gold and silver as circulating money.

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Estimating The Shape Of The Coming Crisis

With a recession become increasingly certain and the end of the expansionary phase of the credit cycle in sight, we can expect a periodic systemic crisis to be upon us soon. The question arises as to how serious it will be, given that despite the massive injections of extra base money since the Lehman crisis, signs of liquidity shortages are already re-emerging in financial markets.

We don’t know what will trigger the crisis, but a likely candidate is foreign selling of US dollars combining with a collapse in the US government’s finances. Perhaps the coronavirus will turn out to be a black swan event, but the underlying conditions for an economic and monetary crisis already exist.

This article looks at alternative outcomes. It concludes that the current situation bears a worrying resemblance to the collapse of John Law’s Mississippi scheme exactly 300 years ago. The key to understanding why this is so is because of the link forged between asset prices and fiat currencies. One fails, and they both fail, more rapidly than the most bearish bear might expect.

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Fed Can’t See The Bubbles Through The Lather

Recently, there has been a parade of central bankers along with their lackeys on Wall Street coming on the financial news networks and desperately trying to convince investors that there are no bubbles extant in the world today. Indeed, the Fed sees no economic or market imbalances anywhere that should give perma-bulls cause for concern. You can listen to Jerome Powell’s upbeat assessment of the situation in his own words during the latest FOMC press conference here. The Fed Chair did, however, manage to acknowledge that corporate debt levels are in fact a bit on the high side. But he added that “we have been monitoring it carefully and taken appropriate steps.” By taking appropriate steps to reduce debt levels Powell must mean slashing interest rates and going back into QE. The problem with that strategy being that is exactly what caused the debt binge and overleveraged condition of corporations in the first place.

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Gold And Silver Prices To Head Dramatically Higher

By Mike Gleason – Re-Blogged From Gold Eagle

Mike Gleason: David, we had you back on at the beginning of the year and you shared some amazing insights on palladium, and we’ll get to that in a bit because that market is still very interesting. But first off, you’ve been watching the Fed balance sheet closely here and I wanted to get your comments about that to begin with. Now, after the extraordinary expansion, which followed the 2008 financial crisis and a few rounds of QE, the Fed began contracting the money supply in 2017. You’ve been making the case that the withdrawal of liquidity could trigger another catastrophe.

So, let’s start with the basics here. If you would, please explain the history of the Fed’s balance sheet, and why it is something investors should be carefully watching.

David Jensen: Yeah, I think that the root of it all, the reason we’re watching so closely is the tremendous imbalance between the amount of cash, liquid cash that’s in the system versus the amount of debt. And the Fed has run interest rates from around 20% in 1980 down to 0% or 0.25% here a couple of years ago. And what they’ve done is expanded the greatest debt bubble in history. The total debt in the U.S., now on all levels according to the Fed’s flow of funds report is about $72 trillion. And to serve as that $72 trillion of debt that’s in extent, there’s only $14 trillion of liquid currency in deposits and in physical cash. So, what we’re seeing now is that the Fed needs to continually to expand the money stock with the money supply. The money supply is the annual change or the addition to the outstanding money stocked addition to the $14 trillion that’s out every year. And they need to add a substantial amount so that the debt can be serviced and so that the economy can continue to move forward.

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Time To Reset Portfolios For Inflation

By Stefan Gleason – Re-Blogged From Gold Eagle

As investors reset their clocks to accord with the end of Daylight Savings Time, they may also need to reset their expectations for future returns.

A strong body of research suggests that artificially changing the time twice a year – forward, then backward an hour – does more harm than good.  It leads to sleep disruptions, heightened stress, missed appointments, wasted time (ironically), and a diminishment of productivity around these biannual time changes.

As reported in HeadlineHealth, “Circadian biologists believe ill health effects from daylight saving time result from a mismatch among the sun ‘clock,’ our social clock – work and school schedules – and the body’s internal 24-hour body clock.”

That mismatch can have dire consequences: “At least one study found an increase in people seeking help for depression after turning the clocks back to standard time in November.”

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Financial System Is Rotten

By Egon von Greyerz – Re-Blogged From Silver Phoenix 

Something is rotten in the state of Denmark the world (from Shakespeare’s Hamlet).

In a world that cannot survive without incessant deficit spending, money printing and negative interest rates, there is clearly something very rotten. It is not only rotten but it stinks! Yes it stinks of lies, deceit and moral decadence.

So why doesn’t anyone stand up to tell the world where we are heading. Well, for the simple reason that no politician can tell the truth. Because if they did, they wouldn’t be elected. The principal purpose of any politician is to buy votes and to get votes you can never speak the truth.

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The Days the Music Died

The music died many times in the past. To name a few:

  • 1929 Market crash
  • 1933 President Roosevelt confiscates citizen gold and declares it illegal to own more than a few ounces.
  • 1971 President Nixon “closed the gold window” and severed the last link between the devaluing dollar and gold.
  • 1987 Stock market crash
  • 2000 Stock market and “dot-com” crash
  • 2008 Stock market and housing crash
  • 2019? Stock market and “everything bubble” correction/crash
  • 2020-2025? “Inflate or Die” QE, bond monetization, helicopter dollars etc.

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Sailing Through a Global Storm Without Enough Hot Air

Global Panic Has Just Started

By Egon von Greyerz – Re-Blogged From Gold Eagle

Greg Hunter interview with Egon von Greyerz on USAWatchdog:

In this Interview with Greg Hunter, Egon von Greyerz says the signs abound that we are nearing the end of this global fiat money experiment.

Asked about the health of the global financial system EvG replied: “The central banks are panicking. They don’t know what to do anymore. Europe is starting QE again with $20 billion a month, but that’s nothing compared to what is coming… This is simply a ‘practice round’”.

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Why are Bonds Going for Broke?

One argument for last week’s extraordinary plunge in bond prices, which I explored as something that might happen this time of year in one of my earlier Premium Posts, was that bond prices could get crushed by the supersized US treasury auctions planned for September and October as the government makes up for its inability to issue new debt during the debt-ceiling standoff.

While pointing out the concern to patrons, I decided in the end for my own investment purposes that the Fed’s termination of quantitative tightening and its return to reducing interest rates would likely offset the impact of the government’s sudden debt expansion. Evidence is solid so far that the ballooning treasury auctions have not been the cause of the sudden collapse in bond prices (rise in yields).

(I also got out before the carnage of last week.)

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The Big Cons

By Gary Christenson. – Re-Blogged From Deviant Investor

WHAT BIG CON? There are so many in the worlds of central banking, economics, government, and money that we list only a few.

  1. We Need A Central Bank: Mainstream Media (MSM), politicians, and bankers promote this lie. It’s not true.
  2. Debt can increase forever without material consequences. This is a dangerous con. Debt matters and will cause major pain in the next five years. Don’t believe the MSM regarding harmless debt.
  3. Deficits don’t matter. Deficits matter little to politicians. If deficits were important, congress would not raise the “debt ceiling” every year or two. Deficits and massive debt transfer wealth to the political and financial elite. Continue reading

The Central Banks’ Time Machine Is Broken

Last week we wrote about how global central banks have created an economic time machine by forcing $17 trillion worth of bond yields below zero percent, which is now 30% of the entire developed world’s supply. Now it’s time to explain how the time machine they have built has broken down.

In parts of the developed world, individuals are now being incentivized to consume their savings today rather than being rewarded for deferring consumption tomorrow. In effect, time has been flipped upside down. These same central bankers then broke that time machine by guaranteeing investors they will never cease printing money until inflation has been firmly and permanently inculcated into the economy.

They have printed $22 trillion worth of new credit in search of this goal since 2008. This figure is still growing by the day. But by doing so, they have destroyed Capitalism. Freedom is dying; not by some Red Army but by central banks.

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An Inflection Point In The Markets?

By Mark J Lundeen – Re-Blogged From Gold Eagle

The Dow Jones closed the week down 3.20% from its last all-time high.  On a week where the FOMC cut its Fed Funds Rate by twenty-five basis points (0.25%), the Dow Jones deflated 2.59% BEV points from last week’s close, or down 707.44 dollars.

Back in the late 1990s, even a rumor that Alan Greenspan was even thinking he may cut the Fed Funds Rate by twenty-five basis points caused the bulls on the floor of the NYSE to begin dancing, beating their copper kettles with wooded spoons for joy.  Twenty years later we live in a different world.

Certainly in the past eighteen months things have changed.  Look at all those BEV Zeros (new all-time highs) in the Dow’s BEV chart below from 2013 to the end of 2017.  But since the beginning in January 2018 the Dow Jones has seen only four BEV Zeros last autumn, another four this summer, and sandwiched in between these paucities of new all-time highs is the deepest post March 2009 market correction; an 18% decline late last December.

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Reading the Next Recession

Here is a journey in photos and facts to compare the present Great Recession with the past Great Depression to gain perspective on where we might be headed.

Just as we had two great world wars, we might have two great depressions, the last of which we started out calling “The Great Recession” because, at the time, we didn’t know where it would end up or how long it would continue. Remember that World War I did not start off being called WWI. It was originally called “The Great War.”

Will Fed Easing Turn Out Like ’95 Or ‘07?

By Michael Pento – Re-Blogged From PentoPort

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality.

Artificially-low bond yields are prolonging the life of this terminally-ill market. In fact, record-low borrowing costs have been the lynchpin for perpetuating the illusion. Therefore, what will finally pull the plug on this market’s life support system is spiking corporate bond yields, which will manifest from the bursting of the $5.4 trillion BBB, Junk bond and leveraged loan markets. And, for that to occur, you will first need an outright US recession and/or a bonafide inflation scare.

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The OTHER Debt Bubbles

Stefan Gleason – Re-Blogged From Silver Phoenix

The $22 trillion official national debt is a much discussed problem, even as politicians exhibit zero motivation to do anything about it. But as big an economic overhang as it is, government debt isn’t likely to trigger the next financial crisis.

Yes, servicing the growing federal debt bubble will depress GDP growth, cause the value of the dollar to drop, and raise inflation risks. But the bubble itself won’t necessarily burst – not anytime soon.

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The Plunge Protection Team, The Fed And The Investor Costs

The “Plunge Protection Team” is the colloquial name for the Working Group on Financial Markets (WGFM). The Working Group was established by the executive order of President Reagan in 1988, in the aftermath of the stock market plunge of October, 1987.

The group reports to the President, and the official members of the group include the Secretary of the Treasury, the chairman of the Federal Reserve, the chairman of the SEC, and the chairman of the CFTC. In other words, the group members are the four most powerful financial officials in the United States. In practice, the committee can be composed of senior aides and officials that have been designated by those top officials.

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Transition Into Economic Night

By Gary Christenson – Re-Blogged From Gold Eagle

The economic world is always changing, but the 2018-2019 period will mark an important transition. Consider credit market debt, interest rates, stock indices, individual stocks, and several ratios.

TOTAL CREDIT MARKET DEBT per the St. Louis Fed.

That measure of U.S. debt increased exponentially from 1951 to 2007 at a rate of 8.8% per year. However, the rate from 2008 to 2017 has been only 2.6% per year. A sixty-year trend changed during the 2007-08 financial crisis. As suggested by others the U.S. reached debt saturation. The economy has not recovered since the crisis. The graph of credit market debt supports that thesis.

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Deflation Continues As The Driving Force In The Stock Market

By Mark Lundeen – Re-Blogged From Gold Eagle

Publishing Note:  I’m taking three weeks off for Christmas and New Year’s, and then a week for myself. Unless something huge happens in the coming month, expect my next article to be out the weekend of 19&20 January.

Mr Bear has begun clawing back inflated market valuations in the stock market.  The Dow Jones has deflated by over 6% since last Friday’s close; everyone can see Mr Bear’s handy work in the BEV chart below.

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Crash Alert!

By Bill Holter – Re-Blogged From Silver Phoenix

People continually ask “when” will it happen? For the last 6 months we have responded “it is happening right before your very eyes”! In fact, as of this morning 52% of global markets are now down over 20% from their highs and qualifying as bear markets. Please understand the financial backdrop these weakening markets are falling into. Bluntly, the world is facing a giant margin call that cannot be met.

Liquidity had become extremely tight even as markets made their high water marks. It is this lack of liquidity which threatens to become a self-reinforcing flash crash to hell via margin calls. “Don’t worry” they say, central banks will come to the rescue. There is one fundamental problem with this line of thought, the value of the issued currencies themselves. There is zero mathematical way to service and pay off current debt with current currency values … currencies must be massively printed and thus devalued if they are to pay off the mountains of debt! Central banks created the problem, they will not be the solution. Rather, their demise will be part of the solution.

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Does Wall Street Now Have A Powell Put

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

First let’s explain exactly what a “Fed Put” is. A Fed put is defined as: The confidence of Wall Street that the Fed will lower interest rates and print money to support the market until economic strength will be strong enough to carry stocks higher. The term “Put” is ascribed to this because a put option is basically a contract that offers a buyer protection from falling asset prices. It was first coined under the Chairmanship of Alan Greenspan when he lowered interest rates and printed money to rescue Wall Street from its 22% Black Monday crash back in 1987. The practice of bailing out stocks was institutionalized by Ben Bernanke; and then became a bonafide tradition perpetuated by Janet Yellen.

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The Approaching Storm

By Gary Christenson -Re-Blogged From Gold Eagle

Peter Schiff explained “What Happens Next.” This article takes his “likely sequence of events” and expands the discussion.

His sequence:

  1. Bear Market
  2. Recession
  3. Deficits explode
  4. Return of ZIRP and QE
  5. Dollar tanks
  6. Gold [and silver] soars
  7. CPI spikes
  8. Long-term rates rise
  9. Federal Reserve is forced to hike rates during a recession
  10. A financial crisis without stimulus or bailouts.

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Worldwide Debt Default Is A Real Possibility

By John Mauldin – Re-Blogged From Gold Eagle

Is debt good or bad? The answer is “Yes.”

Debt is future spending pulled forward in time. It lets you buy something now for which you otherwise don’t have cash yet.

Whether it’s wise or not depends on what you buy. Debt to educate yourself so you can get a better job may be a good idea. Borrowing money to finance your vacation? Probably not.

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What Is The Stock Market Trying To Tell Us?

By Rudi Fronk and Jim Anthony – Re-Blogged From Silver Phoenix

First and foremost, valuations are too high. Third-quarter results have been disappointing. Investors are realizing that sales and earnings cannot grow fast enough to keep the market at record valuations.

Second, the stock market is telling us that its advance has been too narrow. . .too dependent upon a handful of stocks driven higher by the herding effect of passive ETF and index investing where the winners win more because they are winners, boosted by their celebrity status than fundamentals. These market leaders have now been rounded up and summarily shot.

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End Of The World (Part 2)

By Gary Christenson – Re-Blogged From Gold Eagle

Part one discussed the “what” and “why” of unpayable debt, an inevitable “reset” or the end of the current financial world. Part two addresses when.

REVIEW FROM PART ONE

  • A risk/reward analysis for 2018—202? points toward gold and silver, not stocks, bonds, corporate debt, student loans or most asset classes.
  • The “everything bubble” will burst. Consequences will be dire for many individuals, businesses and governments.
  • Debt and spending are “out of control.” Central banks will “paper over” massive defaults, and fiat currencies will devalue.
  • Hyperinflation, defaults and resets occurred in many countries and could (will) happen in developed countries such as the U.S.
  • Rig for stormy weather! Gold and silver bullion and coins are “insurance” against the inevitable currency devaluations that must occur in our debt based fiat currency systems.

Part Two—When?

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Gold-Stock Sentiment Shifting

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks have been largely ignored and neglected for years. Speculators and investors wanted little to do with them for various reasons. But that apathetic sentiment is finally starting to shift thanks to last week’s stock-market plunge. Capital is starting to return to this battered sector as traders begin to realize how radically undervalued it is. Sentiment mean reversions can catapult gold stocks far higher.

Sentiment is defined as “a thought, view, or attitude, especially one based mainly on emotion instead of reason”. We humans are inherently-emotional creatures riddled with sentiment on almost everything. That’s especially true in our perceptions of the financial markets, which heavily influence if not dominate our trading decisions. We buy and sell stocks when it feels good, when markets appear to validate our outlooks.

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A 50% Market Decline & No Way To Stop It

By Michael Snyder – Re-Blogged From Freedom Outpost

Is Ron Paul about to be proven right once again?  For a very long time, Ron Paul has been one of my political heroes.  His willingness to stand up for true constitutional values and to keep saying “no” to the Washington establishment over and over again won the hearts of millions of American voters, and I wish that there had been enough of us to send him to the White House either in 2008 or in 2012.  To this day, I still wish that we could make his classic work entitled “End The Fed” required reading in every high school classroom in America.  He was one of the few members of Congress that actually understood economics, and it is very sad that he has now retired from politics.  With the enormous mess that Washington D.C. has become, we sure could use a lot more statesmen like him right now.

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Scary US & Foreign Market Chrts

By Clive Maund – Re-Blogged From Gold Eagle

There are times in life when being alarmed is actually a healthy defense mechanism that gives you an advantage over the many for whom “ignorance is bliss.” This is one of those times.

The U.S. stock market is now at a dangerous unprecedented overbought extreme, as the charts that we will look at in this update make abundantly clear, after years of being wafted higher by a combination of QE, ZIRP and stock buybacks, and latterly Trump’s tax bonanza, which has kept the party going by making windfall cash available for still more buybacks. However, with QE having already reversed into QT (Quantitative Tightening) and rates rising, the tide has already turned, and the vice is closing inexorably on the market, which will soon buckle and collapse back into an overdue and very necessary bear market that will serve to at least partially flush out the monstrous excesses of the past decade, before they come riding to the rescue with QE4. The magnitude of these excesses means that the bear market is likely to be anything but orderly, and it should be characterized by at least one big crash phase.

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Global Central Banks Enter the Danger Zone

By Michael Pento – Re-Blogged From Pento Portfolios

Investors are experiencing huge moves in commodities, currencies, equities and in sovereign debt across the globe. And now the fall has arrived. Expect the volatility currently witnessed in markets to only surge.

This is because global central banks have overwhelmingly turned hawkish in a vain attempt to gradually let the air out of the massive bubbles they have spent the last decade recreating. Unfortunately, that is not the nature of asset bubbles—they don’t end with a whimper–and they are about to burst in violent fashion.

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Stock Market Signals Are Flashing Red

By Michael Snyder – Re-Blogged From Freedom Outpost

So many top professionals in the financial industry are sounding the alarm about a coming stock market crash right now.  And there certainly have been rumblings in 2018 – not too long ago we had a three-day stretch that was called “the tech bloodbath”, and during that time Facebook had the worst day for a single company in stock market history.  But we haven’t seen the really big “crash” yet.  Many have been waiting for it to happen for several years, and some people out there are convinced that it is never going to come at all.  Of course, the truth is that we are in perhaps the largest stock market bubble that our nation has ever seen, and all other large stock market bubbles have always ended with a major price collapse.  So whether it happens immediately or it takes a little while longer, it is inevitable that stock prices will eventually return to their long-term averages.

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All Hell Will Break Loose With Record Risk

By Egon von Greyerz And Greg Hunter – Re-Blogged From Silver Phoenix

Financial and precious metals expert Egon von Greyerz (EvG) vaults gold for clients at two secret locations on two continents. EvG is sounding the alarm about record breaking global risk and warns, “With this risk, people have to take insurance. This business is not a business, it is a passion, and I have a passion to help the few people that see the risks. . . . I think your best wealth preservation will be gold.”

In closing, EvG says, “. . . At some point, all hell will break loose. There is no question about it. It could be something very serious coming this autumn. The whole political system is fighting against Trump, and that is going to be tough, very tough. . . . The markets are giving me the signal that things are going to turn in the autumn, and you can easily find a number of catalysts for this to happen.”

FULL INTERVIEW:

CONTINUE READING –>

Black Tuesday October 29th 1929 Revisited?

By Richard Lancaster – Re-Blogged From http://www.Gold-Eagle.com

Note: This article was originally posted October 29, 2002, when US stocks were in the midst of a severe market crash.  Appropriately, and in view US stocks have already fallen 10% during the first 3 months of 2018, we believe everyone should carefully review the present update as another CRASH may be brewing on the horizon in 2018.

“These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again.”
– John D. Rockefeller on the Depression in 1933

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Market Volatility Continues To Increase

By Mark J. Lundeen – Re-Blogged From http://www.Gold-Eagle.com

I didn’t miss anything by skipping last week’s posting. The Dow Jones saw its latest correction bottom on March 23rd declining to -11.58% in the BEV chart below. Since then the Dow Jones has oscillated from just below -10% and up to the -8% BEV levels as bulls and bears alike wait to see what is coming their way.

So what’s next for the Dow Jones? Well, my thinking is the Dow Jones saw its last all-time high on January 26th, and in the three months that followed its BEV plot has developed a pattern of lower highs and lower lows.

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Three Mini-Bubbles Burst. Is One Of The Big Ones Next?

By John Rubino – Re-Blogged From Dollar Collapse

Financial crises tend to start at the periphery and work their way into a system’s core. Think subprime mortgages (a tiny little niche of a few hundred billion dollars) that blew up in 2007 and nearly brought the curtain down on the whole show.

There’s no guarantee that the same dynamic will play out this time, but stage one – the bursting of peripheral bubbles – has definitely arrived, with three in progress as this is written.

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When Will The Next Credit Crisis Occur?

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

The timing of any credit crisis is set by the rate at which the credit cycle progresses. People don’t think in terms of the credit cycle, wrongly believing it is a business cycle. The distinction is important, because a business cycle by its name suggests it emanates from business. In other words, the cycle of growth and recessions is due to instability in the private sector and this is generally believed by state planners and central bankers.

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Trump Will Be ‘Fall Guy’ for Fed’s Mistakes

By Rob Williams – Re-Blogged From Newsmax

Peter Schiff, the chief executive of Euro Pacific Capital and financial commentator, said President Trump will end up getting blamed for market and economic turmoil caused by the Federal Reserve’s misguided policies.

That means Trump will lose the White House in 2020, and be replaced by a left-wing candidate who will expand the government’s role in the economy, Schiff said.

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Stock Selling Unleashed!

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling.

As a contrarian student of the markets, I watched stocks’ recent mania-blowoff surge in stunned disbelief. On fundamental, technical, and sentimental fronts, the stock markets were as or more extreme than their last major bull-market toppings in March 2000 and October 2007! I outlined all this in an essay on these hyper-risky stock markets on 2017’s final trading day. The ominous writing was on the wall for all willing to see.

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Market “Earthquake Is Coming” – Icahn Warns “A Lot Of People Will Pay The Price Like In 1929”

By Tyler Durden – Re-Blogged From Zero Hedge

Billionaire investor Carl Icahn spoke to CNBC via telephone and had some very ominous warnings after what he has seen in the last few days.

Reflecting on the market’s moves recently, Icahn shocked the anchors by saying:

“This is something we’ve never seen before… I don’t remember ever seeing a market with this kind of volatility over two weeks.

The market has become a much more dangerous place [due to index funds and ETFs]… it’s like 2008 where everyone was buying mortgages and CDS.”

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Epochal Stock Market Flash Crash

By David Haggith – Re-Blogged From http://www.Silver-Phoenix500.com

It took sixteen months to build the exceptionally steep Trump Rally, and just one week to eliminate a quarter of it. While I wouldn’t call that jolting reversal a stock-market crash in the ordinary sense, the largest one-day point fall in the history of the market (by far) certainly marks a massive change in market conditions. From this point forward, it won’t be the same market it was.

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