Wednesday, November 20, 2019

US Interest Rate Tsunami Waves Spotted Just Offshore

0

by Michael Pento, Market Oracle:

We should all be familiar with the aphorism, “as real estate goes so goes the economy.” Anyone ignoring that economic axiom was completely blindsided by the Great Recession of 2008. Well, the collapse of the Everything Bubble most certainly includes the real estate market…and this time around will definitely not be different.

The plain and simple fact is that home ownership is getting further out of reach for the average consumer as mortgage rates rise. This is especially true for the first-time home buyer. The 30-year fixed rate mortgage is now the highest level since January 2014, 4.64%

Get Ready for JPMorgan and Goldman Sachs to Get Yanked from the Dow

by Pam Martens and Russ Martens, Wall St On Parade:

Yesterday, Wall Street mega bank, JPMorgan Chase, was the biggest percentage decliner in the Dow Jones Industrial Average, losing 2.79 percent. Goldman Sachs, another Dow stock, was third in line after Caterpillar, losing 2.56 percent. But that performance was absolutely mild compared to how other global bank stocks that aren’t in the Dow performed.

Morgan Stanley lost 3.55 percent; Citigroup shed 3.30 percent; while Deutsche Bank, a German bank heavily interconnected with Wall Street banks, that trades on the New York Stock Exchange, touched $13.34 intraday – its lowest share price in more than 30 years. Deutsche Bank closed the day at $13.40, down 3.67 percent. A U.S. unit of Deutsche Bank, which is designated a global systemically important bank (G-SIB), recently failed its stress test according to the Federal Reserve.

Another Sears Holdings Spinoff Dies

0

by Wolf Richter, Wolf Street:

Lowe’s finally seems to get the brick-and-mortar meltdown.

Orchard Supply Hardware – whose mission was, according to its site, “to be America’s neighborhood hardware and garden store focused on paint, repair, and the backyard” – is an iconic name in California going back to the Great Depression when it started as a non-profit co-op to supply farmers. But now it’s scheduled to die.

Its 98 stores in California, Oregon, and Florida will be closed, along with its distribution center in Tracy, California. Its 4,000 employees will be let go. Liquidation sales start Thursday.

BANKERS CALL FOR GLOBAL CURRENCY AS THEY STACK GOLD BARS

from SGT Report:

Greenspan says the US economy is about to fail under the weight of unfunded entitlements, meanwhile central bankers stack gold bars and their minions call for a global currency. Lynette Zang joins me to discuss.

A DEN OF VIPERS

from SGTreport:

The stock market is bouncing back from its worst December in history, is the bottom in – or are the banksters just flexing their muscle by illustrating their ability to crash the markets or raise them at will? Also, as the currency crisis spreads around the world, will precious metals and Bitcoin be the story in 2019? Bob Kudla joins me to discuss.

Jim Rickards: Gold price has been locked to SDRs and global monetary reset is under way

by Chris Powell, Gold Seek:

Dear Friend of GATA and Gold:

GoldCore’s daily blog today reprints analysis by Jim Rickards in his latest Gold Speculator letter arguing that the great “global monetary reset” often speculated about is already underway, as indicated by the recent close correlation between the gold price and the International Monetary Fund’s super-currency, the Special Drawing Right, which began shortly after the IMF made the Chinese yuan a component of the basket of currencies composing the SDR. Since then, Rickards writes, the gold price, ordinarily volatile, has exhibited little volatility as priced in SDRs.

READY FOR THE HYPER INFLATIONARY GREAT DEPRESSION?

from SGTreport:

The economic slowdown is now global, and far more advanced than we thought. With US national debt poised to surpass $22 Trillion this year, what calamity lurks just around the corner? Lanette Zang believes it may be a hyper inflationary depression from which no holder of fiat will escape.

Iran Bans Talks With U.S. After Roll Back Of Sanctions; U.S. Threatens Sanctions On Europe

by Aaron Kesel, Activist Post:

The leader of Iran, Ayatollah Ali Khamenei, has banned holding any direct talks with the United States, as tension between the U.S. and Iran increases, with the country testing a next-generation short-range missile.

“I ban holding any talks with America … America never remains loyal to its promises in talks … just gives empty words … and never retreats from its goals for talks,” Khamenei was quoted saying by TV.

This comes after an offer last month by U.S. President Donald Trump calling for talks with no preconditions with Tehran.

The Storm Is Upon US & It’s Getting Stronger

0

from X22Report:

America First, Dollar Last Says Deutsche Bank

0

by Mish Shedlock, The Maven:

Deutsche Bank says Trump’s America First policy puts the dollar last. BMO predicts a flattish dollar.

Let’s investigate the claim Trump’s ‘America First’ Puts the Dollar Last.

The administration’s “irreconcilable” goals of cutting trade imbalances while funding a large fiscal stimulus program pose the biggest challenge to the international monetary system since the breakdown of the Bretton Woods agreement in the 1970s, George Saravelos, global co-head of FX research at Deutsche Bank, wrote in a note. The only way to resolve these conflicting objectives is via a weaker dollar, he said.

That’s because the U.S. will probably struggle to attract sufficient foreign capital to fund its twin deficits, and that lack of appetite will likely translate to more currency weakness, he said.