Putin Says US Guarantees Unlikely to Prompt North Korea to De-Nuclearize

By Hyonhee Shin and Joyce Lee, et al – Re-Blogged From IJR

Russian President Vladimir Putin said after holding talks with North Korean leader Kim Jong Un on Thursday that he thought U.S. security guarantees would probably not be enough to persuade Pyongyang to shut its nuclear program.

Putin and Kim held a day of talks on an island off the Russian Pacific city of Vladivostok two months after Kim’s summit with U.S. President Donald Trump ended in disagreement, cooling hopes of a breakthrough in the decades-old nuclear row.

Shamil Zhumatov/Reuters

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Gold – Preparing For The Next Move

By Alasdair Macleod – Re-Blogged From Gold Money

The global economic outlook is deteriorating. Government borrowing in the deficit countries will therefore escalate. US Treasury TIC data confirms foreigners have already begun to liquidate dollar assets, adding to the US Government’s future funding difficulties. The next wave of monetary inflation, required to fund budget deficits and keep banks solvent, will not prevent financial assets suffering a severe bear market, because the scale of monetary dilution will be so large that the purchasing power of the dollar and other currencies will be undermined. Failing fiat currencies suggest the dollar-based financial order is coming to an end. But with few exceptions, investors own nothing but fiat-currency dependent investments. The only portfolio protection from these potential dangers is to embrace sound money – gold.

The global economy is at a cross-road, with international trade stalling and undermining domestic economies. Some central banks, notably the European Central Bank, the Bank of Japan and the Bank of England were still reflating their economies by supressing interest rates, and the ECB had only stopped quantitative easing in December. The Fed and the Peoples’ Bank of China had been tightening in 2018. The PBOC quickly went into stimulation mode in November, and the Fed has put monetary tightening and interest rates on hold, pending further developments.

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Fukushima, Chernobyl, And Three Mile Island Show Why Nuclear Is Inherently Safe

From Forbes, By Michael Shellenberger – Re-Blogged From WUWT

Opinions expressed by Forbes Contributors are their own.

Fukushima was a public health catastrophe, just not one caused by radiation.Shutterstock

After a tsunami struck the Fukushima Daiichi nuclear plant in Japan eight years ago today, triggering the meltdowns of three reactors, many believed it would result in a public health catastrophe.

“By now close to one million people have died of causes linked to the Chernobyl disaster,” wrote Helen Caldicott, an Australian medical doctor, in The New York Times. Fukushima could “far exceed Chernobyl in terms of the effects on public health.”

Many pro-nuclear people came to believe that the accident was proof that the dominant form of nuclear reactor, which is cooled by water, is fatally flawed. They called for radically different kinds of reactors to make the technology “inherently safe.”

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Wall Street is Chasing Ghosts

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

Wall Street’s absolute obsession with the soon to be announced most wonderful trade deal with China is mind-boggling. The cheerleaders that haunt main stream financial media don’t even care what kind of deal gets done. They don’t care if it hurts the already faltering condition of China’s economy or even if it does little to improve the chronically massive US trade deficits—just as long as both sides can spin it as a victory and return to the status quo all will be fine.

But let’s look at some facts that contradict this assumption. The problems with China are structural and have very little if anything to do with a trade war. To prove this let’s first look at the main stock market in China called the Shanghai Composite Index. This index peaked at over 5,100 in the summer of 2015. It began last year at 3,550. But today is trading at just 2,720. From its peak in 2015 to the day the trade war began on July 6th of 2018, the index fell by 47%. Therefore, it is silly to blame China’s issues on trade alone. The real issue with China is debt. In 2007 its debt was $7 trillion, and it has skyrocketed to $40 trillion today. It is the most unbalanced and unproductive pile of debt dung the world has ever seen, and it was built in record time by an edict from the communist state.

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Fed Chair Powell’s Rate Pause Won’t Save Stocks

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

Jerome Powell threw Wall Street a lifeline recently when he decided to temporarily take a pause with the Fed’s rate hiking campaign. The Fed Head also indicated that the process of credit destruction, known as Quantitative Tightening, may soon be brought to an end.  This move towards donning a dovish plume caused the total value of equities to soar back to a level that is now 137% of GDP. For some context, that valuation is over 30 percentage points higher than it was at the start of Great Recession and over 90 percentage points greater than 1985. So, the salient question for investors is: will a slightly dovish FOMC be enough to support the massively overvalued market?

The S&P 500 is now trading at over 16x forward earnings. But the growth rate of that earnings will plunge from over 20% last year to a minus 0.8% in Q1 of this year, according to FACTSET. It might have made sense to pay 19x earnings back in 2018 because it was justified by a commensurate rate of earnings growth. But only a fool would pay 16x or 17x earnings if growth is actually negative?

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40 Years Of Reforms And Gold

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The economic development of China is one of the most important events in the history of the world. In an unprecedentedly short time, millions of people have been taken out from poverty. But, as no country has ever developed so fast, that great story raises important worries.

We invite you to read our today’s article about the great progress China made in the last forty years and find out whether it’s too good to be true and it must end with some catastrophe, triggering rally in the gold prices.

One of the biggest risks for the global economy which can materialize this year is the slowdown of China’s economic growth. So, it is wise to analyze the current state of the Chinese economy – its implications for the gold market and what will happen next. As December 2018 marked the forty years of market reforms in China, we will adopt a long-term perspective, explaining how China transformed itself from a poor, backward and isolated country to the world’s economic power. We will examine what the global economy and the precious metals market can expect in China’s fifth decade of reform and development.

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US-China War May Be “Just A Shot Away”

By Mark O’Byrne -Re-Blogged From Gold Eagle

– “World’s most dangerous hotspot” is in the South China Sea
– Currency and trade wars can lead to shooting wars warns Rickards
– Chinese buildup in South China Sea like ‘preparing for World War III’ says US senator (see news)
– U.S.-China shooting war could be, as Mick Jagger put it, “just a shot away…”


Chinese President Xi Jinping speaks after reviewing the Chinese People’s Liberation Army Navy fleet in the South China Sea on April 12. Xi has urged the PLAN to better prepare for combat, according to state media reports. (Li Gang/Xinhua via AP)

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