Central Banks And The Ponzi Scheme That Will Bankrupt The World

By Egon von Greyerz – Re-Blogged From Gold Eagle

The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.

The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago: “Permit me to issue and control the money of a nation, and I care not who makes its laws.”

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This Team Wants to Capture Unlimited Energy From Inside the Earth

Digging In

In central Italy, a team of scientists dug a well two miles deep in search of a functionally-unlimited supply of clean energy.

If the group of Italian and Swiss geologists manages to get a little bit deeper and reach the K horizon — the depth at which they expect to find reservoirs of highly-pressurized fluids — they would be able to tap into what Wired describes as “one of the most energy-dense forms of renewable power in the world.”

The trick, however, is digging that deep without triggering a massive earthquake along the way.

‘Big Mac Index’ Shows US Dollar Strongest in 30 Years

Re-Blogged From Newsmax

The U.S. currency is at its strongest level in 30 years, according to the Economist newspaper’s January 2019 “Big Mac Index.”

The newspaper’s “lighthearted guide to exchange rates” measures the purchasing power of currencies against each other. The gauge also compares the prices of McDonald’s flagship hamburger, the Big Mac, in different countries with the actual exchange rate between the currencies to determine whether a currency is over- or undervalued.

For example, “a Big Mac costs 3.19 pounds in Britain and $5.58 in the United States. The implied exchange rate is 0.57 [pound per dollar]. The difference between this and the actual exchange rate, 0.78, which suggests the British pound is 27% undervalued,” the Economist said.

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Liquidating Civilization

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Further to our ongoing theme of capital destruction, let’s look at a topic which is currently out of favor in the present market correction. Keynes called for pushing the interest rate down near to zero, as a way of killing the savers, whom be believed are functionless parasites. The interest rate has been falling since 1981.

It did not merely fall near to zero. Nor even to zero. It has gone beyond zero, into negativeland. This alone ought to wipe out the mainstream notions of how interest rates are set in our very model of a modern monetary system. You know, the rubbish about bond vigilantes, inflation expectations, real interest rates, risk, etc. Might as well add unicorns, dragons, and leprechauns!

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“Tech Wreck,” “Techlash,” “Techmageddon” – Whatever You Call It, Wall Street Is Terrified Of It

By John Rubino – Re-Blogged From Dollar Collapse

Back in the 1990s, critics of the dot-com bubble used to point out that the global economy depended on the US stock market and the US stock market depended on, like, ten Internet stocks with negative aggregate earnings. The resulting inverted financial pyramid was, the critics claimed, very easy to tip over.

They were right of course. But apparently not right enough to keep us from repeating the same mistake. From today’s Wall Street Journal:

Warning Sign: Tech Stocks Are Dominating Global Markets Like Never Before

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Consumers In Surprising Places Are Borrowing Like Crazy

By John Rubino – Re-Blogged From Dollar Collapse

The Money Bubble is inflating at different speeds in different places. But apparently no culture is immune:

Household Debt Sees Quiet Boom Across the Globe

(Wall Street Journal) – A decade after the global financial crisis, household debts are considered by many to be a problem of the past after having come down in the U.S., U.K. and many parts of the euro area.

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Comparing Homicide Rates to Gun Ownership

Bu Onan Coca – Re-Blogged From Freedom Outpost

If you keep an eye on the media these days, you may notice that whenever they talk about guns, they talk about “gun homicide” as well. As if these two figures are inextricably linked and tell the whole story of the gun debate.

It’s simply not so.

An interesting graph that appeared on Facebook reminded me of the lies the anti-gunners tell using cherry-picked crime stats.

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Will The FED Tell Every American To Buy Gold Before It Destroys The Dollar?

By Egon von Greyerz – Re-Blogged From http://www.Gold-Eagle.com

Western Central Banks have a real knack for timing the sale of their gold reserves. They are absolute experts when it comes to picking the bottom of the gold market. Central banks in the UK, Switzerland and Norway, to mention a few, timed their sales to perfection. The only problem is that they all sold at the absolute bottom between 1999 and 2004. That was of course the time to buy gold and not to sell. But the Finance ministers in charge of Western economies have no understanding of economics. They don’t even understand that their absolute destruction of paper money is always revealed by the gold price.

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US Economic Freedom Has Hit a Historic Low. What Happened?

By Anthony B Kim – Re-Blogged From Daily Signal

It’s already been eight years since the Great Recession, yet the U.S. economy has been just inching along, with its productivity flagging and millions being locked out of the labor market.

One critical underlying factor for this lack of economic dynamism has been the startling decline of America’s economic freedom, an unfortunate legacy of Barack Obama’s eight-year presidency.

The Heritage Foundation’s 2017 Index of Economic Freedom—an annual global study that compares countries’ entrepreneurial environments—highlights the urgent need for the U.S. to change course. For the ninth time since 2008, America has lost ground.

According to the 2017 index, the U.S. ranks 17th out of 180 rated economies, lagging behind other comparable advanced economies such as Switzerland (fourth), Australia (fifth), Canada (seventh), and the United Kingdom (12th).

The U.S. remains mired in the ranks of the “mostly free,” the second-tier economic freedom status into which it dropped in 2010.

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Rejoice…Central Banks Think You’re On To Something

By John Stepek – Re-Blogged From http://www.Gold-Eagle.com

Central banks have got the economy and markets covered.

They know what they’re doing. Their theories are backed up by decades of academic research and expert advice.

Queen Elizabeth inspecting gold bars in Bank of England. Source: Money Week

Expert advice, as we all know, is completely apolitical, changes rarely, and never, ever does a complete U-turn, like – I don’t know – telling us all to start eating butter after years of telling us not to, or something crazy like that.

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Stats, Europe, & US Markets

By David Chapman – Re-Blogged From http://www.Gold-Eagle.com

More Questionable Numbers – The Latest US Jobs Report

The June nonfarm payrolls came in at a stunning up 287,000, following a revised downward May nonfarm payrolls of 11,000. The surprise number gave way to a ‘wow’ moment, and the stock market soon rallied to new all-time highs.

The Bureau of Labor Statistics (BLS) conducts two job surveys each month. Actually, one is carried out by the US Census Bureau (household survey), and the other by the BLS (establishment survey). The two reports don’t necessarily jibe, as differences abound. The household survey conducts interviews with individual households, while the establishment survey does the same, only with businesses. Two surveys, two separate results.

The nonfarm payrolls reported is from the establishment survey, but the household survey determines the unemployment rate and other statistics. The key to the most recent numbers is that many of the jobs were in leisure and hospitality, which tend to be low paying and part-time. The labour force participation rate rose, as more people came looking for work and that helped push up the unemployment rate.

Canada’s equivalent of nonfarm payrolls were not encouraging. Job loss was small, but full-time jobs were replaced with part-time jobs. Not a healthy sign.

The Economist and the Italian Job

Esteemed magazine The Economist has joined the ranks of the concerned over the deteriorating banking situation in Italy, where there are some US$400 billion of non-performing loans (20% of Italy’s GDP) on Italian banks’ books. The Economist points out many of the same problems we noted a week earlier, including the inability under current EU rules to provide a direct taxpayer bailout to the banks. Instead it has to be a bail-in.

Trouble is, much of the non-performing loans are held not by institutions as one would expect, but by individuals. Previous attempts at bail-ins have resulted in suicides and demonstrations. What the article does not get into is the potential for contagion, and the growing problem of EU banks in general, where many of the biggest banks are in trouble as their stock prices have plunged precipitously.

The EU is plagued with infighting, anemic growth, high debt, deflation and some $10 to $12 trillion of debt trading at negative interest rates. Bonds issued by the EU, Germany, Switzerland and the Netherlands trade at negative yields. And then there is Brexit, and maybe even an Auxit (Austria).

Brexit Revisited

A week can’t go by without talking about Brexit. The United Kingdom has a new prime minister in, Theresa May, and how she got there was worthy of the Kremlin. She has promised to be a tough negotiator on Brexit, but so has the EU. The UK powers want to take their time. The EU wants to hurry. The clash could be interesting, and the Brexit promises to be with us for some time.

US Election Season – Now the Real Fun Begins

The final run of the US election season kicks off next Monday July 18, with the Republican National Convention (RNC) in Cleveland. The Democratic National Convention (DNC) kicks off on July 25 in Philadelphia. Once the conventions are out of the way, three months of mudslinging will follow. The conventions themselves could be controversial, with heavily armed police and protestors preparing to clash.

Both current candidates for president are extremely low in approval polls, with the winner likely to be whoever is less despised than the other. Currently the Democratic candidate (Hillary Clinton) leads the Republican candidate (Donald Trump) by either a wide margin or a narrow margin. The final leg of the campaign to Election Day on November 8, 2016 promises to be volatile and potentially violent.

Weekly Market Review

Stocks

The US stock market (S&P500 and Dow Jones Industrials) has roared to new all-time highs. Ok not all of it, as the NASDAQ and especially the Dow Jones Transportations have not yet joined the party. A divergence? A non-confirmation? Time will tell.

The roaring jobs market and the realization that the Fed is probably one and done with regards to interest rate hikes have helped fuel the run to new all-time highs. But the rally to new highs has been very narrow, reminiscent of the famous ‘nifty-fifty’ rally of 1972-1973 that culminated in a 50% collapse in the markets into 1974. There have also been net withdrawals from equity funds, and some evidence that it is instead central banks buying.

The market rallied to new all-time highs, with only shallow corrections seen in the past couple of years (under 20%). We take a look at the various cycles impacting the US stock markets and muse about a possible 90-year cycle of major depressions, with the last one seen in the ‘dirty thirties’ with the 89% drop in the markets into 1932.

Currencies

The US Dollar Index continues to tread water following Brexit, with little movement this past week. The euro also had little movement, although the Japanese yen fell quickly from its high. We look once again at the Canadian dollar and its amazing tracking with WTI oil prices. The fact that the Canadian economy continues to be weak and the BoC has lowered its growth forecast has not helped.

Gold and Precious Metals

Gold had a corrective week, but so far it is shallow and all trends remain intact. Silver actually gained small on the week, and the gold stocks hit new 52-week highs once again before closing off small. Platinum and palladium joined the party, and both made new 52-week highs, joining gold, silver and the gold stocks.

Gold has been rising on negative interest rates, anemic growth, high debt and the central banks running out of ammunition to deal with the crisis. But the market has at short term become overextended, so a correction would be healthy. We examine two schools of thought about the current market:

One that believes that the current rally is a correction to the long breakdown from the highs of September 2011, and the other that believes that the correction down from September 2011 was itself a major correction to the bull market of 2001-2011. We are now embarking on a new bull phase to the upside.

Strangely, both scenarios are generally aligned — and both could see new all-time highs for gold and silver in the end. The recovery in gold stocks has been remarkable. Moreover, in a space of 9 months the TSX Gold Index (SPTTGD) has already recovered 50% of what it lost from September 2011 to its bottom in September 2015.

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Brexit, The Animated Movie

By Astute Angle – Re-Blogged From https://astuteangle.wordpress.com/

It is surely not irrelevant that for many left-wing Britons, ‘Europe’ exercises a grip on the imagination similar to that of the Soviet Union on the Philby generation at Cambridge in the 1930’s.  Nor is it illegitimate to seek a parallel between the apologias for the Soviet Union issued by the British intelligentsia in the 1920’s and 1930’s, and today’s wilful closing of intellectual eyes to the realities of ‘Europe’.  The left-wing fellow travellers of the 1930’s constantly made unfavourable comparisons between Britain and the supposed paradise to the east.  Today, the same is true of the British Euroenthusiasts.  The head of the Commission’s representative office in Britain, for instance, seems to view ceaseless denigration of his own country as the most effective way of selling ‘Europe’ to his fellow Britons.

Bernard Connolly, from The Rotten Heart of Europe  (1995), Introduction, p xvii

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Financial Armageddon Looms On The Horizon As The EURO UNION IMPLOSION Nears

By IM Vronsky – Re-Blogged From http://www.Gold-Eagle.com

History is testament that an ill-conceived fetus is doomed to a handicapped crippled adulthood. Thusly, many rational pundits perceive the hodge-podge jumbled union of many European nations, known as the Euro Union. But just as oil and water cannot be blended nor melded into a stable liquid, it logically follows that the haphazard mixture of many radically diverse nations are likewise immiscible…and will probably collapse in the not too distant future.

Implosion of the European System

“…Europe is made up of a good number of historically distinct nations whose diversity of political cultures, even though this diversity is not necessarily marked by national chauvinism, has sufficient weight to exclude recognition of a “European People” on the model of the United States “American people.” THIS IS A MUST READ:   http://monthlyreview.org/2012/09/01/implosion-of-the-european-system/ )

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America’s Economic Freedom Has Declined Rapidly Under Obama

By Anthony B Kim – Re-Blogged From The Heritage Foundation

Millions of people around the world are emerging from poverty thanks to rising economic freedom. But by sharp contrast, America’s economic freedom has been on a declining path over the past decade.

America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.

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Marc Faber – Best Interview of 2015

By Bob Shapiro – Re-Blogged From http://www.Gold-Eagle.com

Marcopolis.net. did an interview with Dr. Marc Faber. He touches on the Global Economy, Geopolitics, Debt, and a few other topics. It’s an hour long, and well worth the view.

This Actually Is Going To Happen Next Year

By John Rubino – Re-Blogged From Dollar Collapse

The intellectual groundwork is being laid for the next stage of the Money Bubble, and it’s going to be epic. Here are excerpts from two articles that appeared over the weekend (and which should be read in their entirety). Both deal with Japan, which went all-in on debt monetization, lost badly, and now needs a new plan.

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‘Black Swan’ Taleb Warns “Calm Before The Storm”

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

– Is the apparent calm of the West a signal of latent instability?
– Increasing symptoms of instability in West as proposed by Nassim Taleb
– Wider public and mainstream press believe “experts” have everything under control
– Black Swan approaches and we may be experiencing “the calm before the storm”

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The Dollar in FOREX Markets

cropped-bob-shapiro.jpg   By Bob Shapiro

The paper currencies of all countries fluctuate in exchange rate for several reasons, mostly (but not always) due to government policies.

The exchange rate for the Euro (since 1999 when the Euro was introduced) vs the US Dollar, started around $1.18, dropped to $0.83 in 2001, jumped up to $1.60 in 2008, and now is back just below where it started, today at $1.1275 per Euro.

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The “Tactical” Nuclear Option(s)!

Bill Holter   Guest Post By Bill Holter

WOW! Two huge news stories within 24 hours. First, Russia decided to shut off the gas pipeline to southern Europe, next the Swiss dropped their 1.20 floor peg to the euro. The first story is absolutely huge but has been completely overshadowed by the Swiss. In my opinion, the Russian move is part of the “war” chess game, the move by the Swiss is your beginning to multiple resets leading into a complete economic and financial reset!

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Switzerland: Vote Yes On Gold Initiative

Alex Merk   By Alex Merk

(Re-Blogged from Gold-Eagle.com)

As the US FED, the Eurozone Central Bank, the Japanese Central Bank, and others print more and more dollars, euros, yen, etc, in an effort to “stimulate” their local economies, through “Beggar-Thy-Neighbor” tactics, the Swiss people have a grand opportunity to halt such monetary insanity in their country. There is a lesson to be learned for the American people: If you can’t end the FED, maybe you can control it at least. -RLS

On November 30th, the Swiss are voting whether to amend their country’s constitution on an initiative entitled ‘Save our Swiss Gold.’ The Swiss gold initiative appears widely misunderstood, both inside and outside of Switzerland. We discuss implications for gold, the Swiss franc and Switzerland as a whole.

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