Tuesday, January 15, 2019

Something Wicked This Way Comes

by John Maudlin, Mauldin Economics:

For a couple of years now, the economic narrative has shown a comparatively strong US against weakness in Europe and some of Asia (NOT China). The US, we are told, will stay on top. I agree with that, as far as it goes… but I’m not convinced the “top” will be so great.

Americans like to think we are insulated from the world. We have big oceans on either side of us. Geopolitically, they serve as buffers. But economically they connect us to other important markets that are critical to many US businesses. Problems in those markets are ultimately problems for the US, too.

Stock Market Overvalued & Unstable | David Collum

from Silver Doctors:


Russia Prepares To Buy Up To $10 Billion In Bitcoin To Evade US Sanctions

from ZeroHedge:

While the market has been increasingly focused on the rising headwinds in the global economy in general, and China’s economic slowdown in particular, while the media is obsessing over daily revelations that Trump may or may not have colluded with Russia to get elected, a far more critical, if underreported, shift has been taking place over the past year.

As we reported in June, whether due to concerns over draconian western sanctions and asset confiscations following the poisoning of former Russian military officer Sergei Skripal, or simply because it wanted to diversify away from the dollar, Russia liquidated virtually all of its Treasury holdings in the late spring and early summer, in the process sparking a major repricing of the 10Y US Treasury, whose yield jumped from 2.70% at the start of April to a high of 3.10% in May, a move which economists were struggling to explain at the time.

John Rubino – Ungovernability

by Kerry Lutz, Financial Survival Network:

John Rubino returns… Politicians, especially on the left are saying things that they could have never gotten away with 5 years ago. Cursing out your president on live tv was unheard of. In a way Trump has brought this on himself. Having very little ability to filter his speech, he lowered the bar for others. And now that the toothpaste is out of the tube, it will be impossible to put it back in. So get ready for lots more.

Click HERE to Listen

Bankruptcy Next, PG&E Says. Shares Down 90% in 15 Months. From “Investment Grade” to “Default” in Three Weeks?


by Wolf Richter, Wolf Street:

California’s rate payers & taxpayers likely on the hook, as we know from PG&E’s first bankruptcy in 2001.

“PG&E remains committed to providing safe natural gas and electric service to customers as it prepares to initiate voluntary reorganization proceedings under Chapter 11 [of the bankruptcy code],” PG&E announced this morning. San Francisco-based, the regulated monopoly is one of the largest investor-owned utilities in the US and provides gas and electric services to 16 million Californians. It will file for bankruptcy “on or about January 29, 2019,” it said, following the 15-day advance notice required under California law.

These New Numbers Are Telling Us That The Global Economic Slowdown Is Far More Advanced Than We Thought

by Michael Snyder, The Economic Collapse Blog:

We continue to get more confirmation that the global economy is slowing down substantially.  On Monday, it was China’s turn to surprise analysts, and the numbers that they just released are absolutely stunning.  When Chinese imports and exports are both expanding, that is a clear sign that the global economy is running on all cylinders, but when both of them are contracting that is an indication that huge trouble is ahead.  And the experts were certainly anticipating substantial increases in both categories in December, but instead there were huge declines.  There is no possible way to spin these numbers to make them look good…

Will The Next Silver Rally Exceed The 2011 Highs

by Chris Marcus, Miles Franklin:

While many are beginning to realize that the gold and silver markets have indeed been manipulated, it’s interesting to consider what might happen when that manipulation is resolved.

Because while the wait has been frustrating for many, that’s not to say it will not end without due reward. Especially when you think back about what actually happened in 2011, and consider some of the dynamics involved.

When silver was soaring in April of 2011 and reached $49 per ounce, there was some attention being paid by the market. CNBC added gold and silver to its bottom of the screen ticker, and even some in the mainstream were at least temporarily aware of what was happening with the metals pricing.

GOLD UP $1.65 TO $1290.95/SILVER IS UP ONE CENT TO $15.64

by Harvey Organ, Harvey Organ Blog:


FacebookGoogle PlusLinkedInRSS FeedEmail Central banker asserts Chinese yuan will challenge dollar as primary reserve currency

by Kenneth Schortgen, Shotgun Economics:

On Jan. 10, Britain’s chief central banker asserted during a forum that the Chinese Yuan will soon challenge the dollar as a primary reserve currency.

Speaking in a conference regarding Future global trends, Bank of England head Mark Carney stated that the days of the dollar being the singular reserve currency are diminishing, and that the Chinese yuan appears to be the best choice to rival dollar hegemony.

GET READY FOR TURBULENT MARKETS IN 2019: Gold & Silver To Outperform Most Assets

by Steve St. Angelo, SRSRocco Report:

Investors should prepare for crazy and turbulent markets in 2019.  As the correction in the broader markets picks up speed and heads much lower, investor worry will start to turn into fear.  At this point, the precious metals will likely disconnect from the markets and move higher as investors move into gold and silver to protect wealth.

I discuss this in my newest video update: DOW, GOLD & SILVER:  Markets Disconnect In 2019.  In the video, I show how gold and silver rallied over the past month while the broader markets, copper, and energy sold off.  I believe the precious metals will continue to disconnect even further from the markets in 2019 and 2020.

Why central banks cannot really Manage Anything

by Martin Armstrong, Armstrong Economics:

QUESTION: Marty you recently said that “the entire problem of lowering interest rates to ‘stimulate’ the economy demonstrates that central banks cannot really manage anything.” Is this statement really true?


ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power to do anything be it end Global Warming or managing the economy. Yet neither has ever been accomplished.

Peter Schiff: Gold Is Going to Shine in 2019 (Video)

by Peter Schiff, Schiff Gold:

Peter Schiff has said it’s not that we have a “volatile” economy right now. We have a bubble economy, and we are at the beginning of a much bigger crisis than we went through in 2008. Peter continued with this theme on a recent appearance on Kitco News with Daniela Cambone noting that things are setting up for gold to shine in 2019. As far as the yo-yoing stock market?

It’s just the air coming out of the bubble. That’s the volatility,” Peter said.

Newmont Mining To Buy Goldcorp In $10 Billion Deal To Create World’s Largest Gold Miner

from ZeroHedge:

In the latest deal in what’s becoming a wave of consolidation among gold miners, Newmont Mining announced on Monday that it would buy smaller miner Gold Corp in a deal valued at $10 billion.

The deal could create the largest gold miner in the world, with operations stretching from the Americas, to Australia and Ghana, the companies said. Newmont will offer 0.3280 of its share and two cents for each share of its Canadian rival, according to  CNBC. The deal is the largest in the space since Randgold and Barrick announced their plans to merge back in September.

Fitch Threatens to Downgrade the US’ Credit Rating?

from WallStForMainSt: