Tuesday, November 29, 2022

Audioblog #206-Gold’s Win-Win Scenarios, In The Upcoming, Historic Crypto-Currency Explosion

by Andy Hoffman, Miles Franklin:

Andy joined Miles Franklin as Marketing Director in October 2011. Prior to joining the company, he spent sixteen years on Wall Street and five in the mining business. He has been writing free missives about precious metals, markets, and economics since 2004.

Click HERE to listen.

Read More @ MilesFranklin.com

Greg Weldon: Gold is a “coiled spring… the breakout is here, fundamentals are in place, technicals are compelling”

by Mike Gleason, Money Metals:

Coming up we’ll hear a wonderful interview with Greg Weldon of Weldon Financial and author of the book Gold Trading Boot Camp. Greg gives us his thoughts on the dangerous scenario that could ensure if a selloff drives everyone out of stocks all at the same time, shares his opinion on Bitcoin and also tells us why he views gold as a coiled spring waiting to release. Make sure you stick around for my conversation with Greg Weldon, coming up after this week’s market update.

Downside volatility hit financial markets on Thursday as concerns grow about the political path forward for the White House. President Donald Trump again finds himself under heavy criticism from the media and also from a growing chorus of establishment Republicans. More on that in a moment…

Click HERE to listen.

Read More @ MoneyMetals.com

Doug Casey on Asset Seizures

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by Doug Casey, Casey Research:

Justin’s note: Jeff Sessions wants to steal your property.

Sessions is the U.S. Attorney General. Since taking office in February, he’s done all sorts of idiotic things. He’s threatened to crack down on the legal marijuana market. He’s attacked gay rights.

And now, he wants to amp up asset seizures.

This is when the government takes money and property from people. You don’t even need to be convicted of a crime.

It’s a disturbing development, to say the least. That’s why I called Doug Casey as soon as I heard about it…

Justin: Doug, what do you think of Sessions’ latest “bright” idea?

Doug: Well, let me preface this by saying Sessions was a disastrous choice for Attorney General. He’s done nothing in his life but be a lawyer, a prosecutor, and a politician. He has no experience—and therefore probably no inclination or even ability—to produce things of tangible value.

But we almost always get undesirables as the AG. They’re hatchet men, meant to prosecute “the enemy,” taking their pick of the hundreds of thousands of laws and regulations on the books to do so. Look at some of the recent AGs—Loretta Lynch, Eric Holder, Alberto Gonzales, John Ashcroft, Janet Reno. All of them would have been willing and obedient lapdogs to Stalin or Beria. A certain personality type is suited for the job.

Sessions is a rabid drug warrior, even against something as useful and benign as hemp, or marijuana. He’s a busybody who feels no guilt or remorse at enforcing laws that have destroyed the lives of tens of millions. I don’t know if he’s stupid, bent, thoughtless, paranoid or what his problem might be. Maybe he’s afraid that if pot wasn’t illegal he’d become a dope fiend himself. But the proper direction, the objective, is to legalize all drugs. Not amp the drug war up another notch, as he wants to do.

And not only does he want to amp up the drug war, but he wants to increase the State’s ability to confiscate citizens’ property—especially cash—on even suspicion of breaking a law.

In the meantime he’s not doing anything to investigate the people in Hillary’s camp for all kinds of apparent illegality. In fact, now that Trump’s in office, what ever happened to his promise of a real investigation of what really happened to things like Building 7 on 9/11? Or the strange deaths that seem to have surrounded the Clinton clan for decades?

So far the man seems all negatives no positives. He’s just another Deep State actor who’s climbed the political ladder a little higher. These guys all protect each other.

But increasingly many of Trump’s choices are disastrous, like his National Security Advisor McMaster and White House Chief of Staff Kelly. And wormtongues Ivanka and Jared Kushner. This is perhaps an inevitable problem when a President is just a pragmatist with no philosophical core. Although, I hasten to add, having no core may be better than having a rotten core, like Obama and others in the recent past.

Justin: Not to mention, asset seizures don’t work. Over the past decade, the federal government has seized more than $28 billion. But that’s done absolutely nothing to deter crime.

So, why would Sessions double down on this failed policy? Is he clueless? Or is the government just that desperate?

Doug: Good question. Well, I’ve already speculated on some possible aspects of Session’s character that might partially explain this. But all the repressive aspects of government—civil forfeitures are just one—have been growing and compounding for years. It’s not a conspiracy, it’s the natural progression of all living organisms. They all want to grow, exert more control on their environments, and become more powerful. The problem is that government has unusual powers, and no longer seems to have many limits. So you can expect this trend to accelerate.

I saw the other day the government steals more from the American people through confiscations than is lost outright to robberies and muggings. It’s been reported that in 2015 civil forfeitures exceeded the amount stolen by all robbers. It’s quite amazing and disturbing. There are at least two reasons things are deteriorating.

Number one, as a general rule, police are no longer trained as “peace officers.” They’re trained to be, and view themselves, as “law enforcement officers.” This is a very different thing. The police are a bigger threat to your property and your liberty, not to mention your life, than actual criminals. Number two, these governments are all bankrupt. They’re looking for revenue wherever they can get it. Predators are most dangerous when they’re hungry.

The police are the ones that actually make it happen, and they have a vested interest in doing the wrong thing. Whenever a police department confiscates things under these laws, they get to keep some percentage. It varies, but can be 10, 20, 30, 50 percent of what’s confiscated, and they love it because the money goes to the local police department in question. They can use it for buying fun cop toys, or for buying further educational benefits, or whatever, for themselves. So, they’re profiting from this stuff as directly as the criminals do that steal things from citizens. It’s a total disaster.

And remember, the Attorney General is the country’s top law enforcement officer.

Read More @ CaseyResearch.com

Market Report: $1300+ in sight

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by Alasdair Macleod, GoldMoney:

Having had an excellent run last week, gold and silver have consolidated by initially falling on Monday and Tuesday this week, before rallying back up to the highs on Wednesday and Thursday. In early European trade this morning, gold was up $6 on last Friday’s close at $1294, and silver up 10 cents at $17.15.

The principal driver of precious metal prices has been the US dollar, which after a prolonged bout of weakness, culminating last week on fears of war with North Korea, had a sharp relief rally on Monday and Tuesday.

The underlying strength of the gold price is beginning to show priced in the other major currencies. This is shown in our second chart.

Priced in sterling, gold managed a close last night (Thursday) above £1000, moving in on the highs of early June. Priced in euros, gold is now up on the year – just. So, while for Americans it’s a dollar-hedge story, for those whose base is in other currencies, gold is showing some encouraging underlying strength.

All this points to the possibility that gold is mounting a successful attack on the psychologically important $1300 level. And our third chart, including the principal moving averages watched by traders, also gives cause for optimism.

So far, gold appears to have been in a consolidation pattern, shown between the dotted lines. The question today is whether the gold price will have another dip towards the lower bound at $1210, or whether this third attempt will succeed. The price and moving averages are now in bullish formation, indicating the balance of probability is the challenge to $1300 will succeed, in which case $1350-1400 becomes the next technical objective.

The fundamental background appears supportive as well. While the immediate concerns over North Korea have thankfully subsided, it became clear this week that America’s attention will turn to trade, attacking China. Steve Bannon, the White House Chief Strategist in an interview with The American Prospect, made it clear that it was a battle for global hegemony between America and China, and that America had to act soon to prevent China dominating the world in twenty years’ time.

Two things stand out: it is no longer a question of China having an unfair trade advantage, trade is now centre-stage for a geopolitical war. And Bannon is obviously confident America will win.

Read More @ GoldMoney.com

STEVE BANNON OUSTED/BREITBART PROMISES “THERMONUCLEAR WAR”

by Harvey Organ, Harvey Organ Blog:

GOLD DOWN 35 CENTS/SILVER DOWN 4 CENTS ON 7TH CONSECUTIVE RAID/DEBORAH WASSERMAN SCHULTZ’S AIDE CHARGED.

GOLD: $1286.15  DOWN $0.35

Silver: $17.02  DOWN 4 cent(s)

Closing access prices:

Gold $1284.50

silver: $16.99

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1291.88 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1287.95

PREMIUM FIRST FIX:  $3.93

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SECOND SHANGHAI GOLD FIX: $1298.42

NY GOLD PRICE AT THE EXACT SAME TIME: $1287.40

Premium of Shanghai 2nd fix/NY:$9.02

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LONDON FIRST GOLD FIX:  5:30 am est  $1295.25

NY PRICING AT THE EXACT SAME TIME: $1295.85 

LONDON SECOND GOLD FIX  10 AM: $1295.50

NY PRICING AT THE EXACT SAME TIME. $1297.65 ????

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR  nil  OZ.

TOTAL NOTICES SO FAR: 4581 FOR 458,100 OZ  (14.248 TONNES) 

For silver:

AUGUST

 

 51 NOTICES FILED TODAY FOR

 

255,000  OZ/

Total number of notices filed so far this month: 1051 for 5,255,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

Today for the 7th consecutive day we had a raid on both gold and silver.

 

Late at night after I received the preliminary data which gives me a good idea of where we are heading for the next day…..

 

I wrote this to my friends:

“my goodness!!……

I will be shocked if we do not have another raid for the 7th consecutive trading day.

the Oi for gold is just too high..

let us see.”

with gold ready to puncture $1300.00 and silver $17.25, you could sense that the bankers had to cool both of our precious metals. The fact that silver lagged behind gold was a good sign that a raid was called upon as well as the weak close of the gold/equity stocks.

The most important aspect of today’s data is in silver. In the COT report, the bankers did not increase their massive shortfall position in silver because they are aware of the acute shortage of metal in London. The COT report shows a huge increase in commercial short position in gold but not silver.

The bankers needed a good positive close at the Dow and Nasdaq with the Bannon firing. After the Dow initially rose past 50 points, it closed down 75 points on the day….expect huge weakness again once the new week begins.

Let us have a look at the data for today

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In silver, the total open interest  ROSE BY 1,565 contracts from 188,247 up to 189,812 with THE RISE IN THE PRICE THAT SILVER UNDERTOOK WITH  YESTERDAY’S TRADING (UP 11 CENTS) . THE BANKERS AGAIN PROVIDED THE SHORT PAPER TO INITIATE ANOTHER RAID YESTERDAY (6TH CONSECUTIVE DAY OF TORMENT). THAT FAILED IMMEDIATELY AS SILVER STARTED TO ADVANCE IN PRICE.  NEWBIE SPEC LONGS REALIZING ANOTHER FAILED RAID, JUMPED ONTO THE BANDWAGON WITH PURCHASES.  HOWEVER THE COMMERCIALS WERE STILL LOATHE TO SUPPLY THE SHORT CONTRACTS. THUS A HUGE ADVANCE IN PRICE WITH A SMALLER THAN GOLD GAIN IN OI. 

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.949 BILLION TO BE EXACT or 136{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 51 NOTICE(S) FOR 255,000OZ OF SILVER

In gold, the open interest ROSE by A MONSTROUS 10,722 WITH THE GOOD SIZED RISE in price of gold ($13.45 GAIN YESTERDAY.). The new OI for the gold complex rests at 493,127. A raid was called upon yesterday by the bankers and it failed. The bankers initiated the raid with short paper but newbie longs entered the arena with reckless abandon with the lower price of gold . Thus the bankers were not successful in covering their shorts but they did supply the necessary short paper to our newbie spec longs.  The result: increase in open interest with a higher price for gold.

we had: 0 notice(s) filed upon for nil oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 795.44 tonnes

IN THE LAST 25 TRADING DAYS: GLD SHEDS 41.53 TONNES YET GOLD IS HIGHER BY $53.15 . 

SLV

Today:  WE HAD NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 334.407 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver RISE BY 1565 contracts from 188,247 up to 189,812 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE  RISE IN SILVER PRICE (11 CENTS). THE INITIAL RAID THURSDAY MORNING WAS REBUFFED IMMEDIATELY BY A HUGE INFLUX OF NEWBIE LONGS ENTERING THE SILVER COMEX CASINO.  BUT THIS TIME IT WAS GOLD THAT WAS IN THE LEAD AND SILVER LAGGED BEHIND. THE BANKERS STILL HAD A HARD TIME COVERING DUE TO THAT RISE IN PRICE.  YOU CAN CLEARLY VISUALIZE BANKER CAPITULATION AS THEY TRY DESPERATELY TO EXIT SOME OF THEIR ENORMOUS SHORTS.. NEWBIE LONGS ENTERED ONCE THEY SAW THE FAILED RAID, WITH THE SUPPLY COMING FROM OLD SPECS EXITING FOR A PROFIT.  RESULT: HIGHER PRICE WITH A SMALLER OI GAIN.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

 i)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 0.29 POINTS OR 0.01{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED DOWN 296.65 POINTS OR 1.08{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} The Nikkei closed DOWN 232.22 POINTS OR 1.18{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED DOWN 0.49{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6722/Oil UP to 47.18 dollars per barrel for WTI and 51.02 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN , Offshore yuan trades  6.6807 yuan to the dollar vs 6.6722 for onshore yuan. NOW THE OFFSHORE IS WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS STRONG TO THE DOLLAR AND THIS IS COUPLED WITH THE WEAKER DOLLAR. CHINA IS HAPPY TODAY

Read More @ HarveyOrganBlog.com

Cryptocurrencies: The Unfolding Fiat Digital Scheme

from The Daily Coin:

The feature image (on the left) is a depiction of Satoshi Nakamoto. We think it’s the person in the middle, because he looks “active” but we’re not sure which image was tied to “him” so we just used several. You can decide which image actually represents Satoshi.

When I wrote the  three part series detailing how the banksters could potentially unleash the next level of enslavement through cryptocurrencies I hadn’t even discovered ACChain. Two months later we find out that ACChain is unfolding right now – it is here and it is growing, daily. Quantum computing is here.

Now we find that some of the most respected voices in the alternative economic/financial analyst space are turning towards a new type of illusory, fiat wealth and proclaiming it will “save us from the banksters”. The magic bullet has arrived and we should all jump on board. Sounds like something a bankster would hope we would do with their latest pile of derivatives nonsense.

A ghost, “named” Satoshi Nakamoto developed bitcoin – no one knows if this is a person, a tadpole, a group of people, a space alien or an NSA/CIA operative, but, it is accepted, on blind-faith, that it is a person, a man of Japanese origin. This story, which is akin to a fairy-tale because it is only a story since no one has ever seen this “person” or provided any photographic evidence or any published works outside of the bitcoin illusion. I am suppose to believe “he” gave us the keys to the kingdom that will “save us from the banksters”. Is this the story that I am suppose to believe and place my families wealth and security in this mechanism? Seriously?

Andy Hoffman, during a recent interview stated he “will never do another interview with people that believe in conspiracy theories” while he, and all the other bitcoin fans, believe in the fairy-tale spelled out above. Never mind the fact the NSA, in conjunction with MIT, produced a white paper in 1996, spelling out how an anonymous cryptographic currency could circumvent the current cash system. This was a full 12 years ahead of Sat-on-sushi’s white paper explaining bitcoin. Never mind the fact, as The Daily Economist pointed out, Sat-on-sushi’s white paper just happened to hit the wire during the 2008-2009 economic meltdown, actually being released on Halloween 2008. Personally, I gave up on coincidences decades ago.

In 1996 the NSA (that’s right, a government agency) published a White Paper titled, HOW TO MAKE A MINT: THE CRYPTOGRAPHY OF ANONYMOUS ELECTRONICCASH.  And in this white paper, analysts and researchers laid out the entire breadth and scope of replacing cash and other fiat currencies with a completely digital one, based on anonymous cryptocurrencies.

And they did this 12 years before the anonymous ‘Satoshi Nakamoto’ published his/her White Paper on the very eve of the financial collapse. Source

Stating that a fellow analyst’ work is  “a dime a dozen” [at the 28:20 mark] doesn’t really shine an appropriate light on the alternative economic/financial analyst community. Most everyone is doing the best they can to present factual, alternative viewpoints and analysis that dispel the continual stream of lies, deceit and propaganda we are sold as truth by the mainstream media. Not really a confidence builder when we are discussing our wealth and the financial security of our families. To attack one is to attack all, including the one speaking. I feel the work I do is worth far more than a dime-a-dozen.

One of the more disturbing revelations over the past several months is how once tried and true hard asset advocates have suddenly become a voice for a new digital illusion of wealth. Cryptocurrencies “value” are derived from the fiat currencies of financial enslavement like the Federal Reserve Note, Japanese Yen and Euro. I must have missed something along the way as I have been under the impression these were completely worthless scripts, printed out of thin air and backed by nothing more than “faith and credit” – translation – “faith means you believe in something that can not be proven and credit is the ability to take on more debt”. Dave Kranzler explained this to me one day and it seems to fit pretty nicely.

The first question Sean ask during the interview is – “What is our cause?” For me, this is an extremely important question. One that each of us should ask ourselves everyday, especially, the people discussing economics, finance, money and currency with a wider audience.

I am so sick of FUD [fear, uncertainty, doubt]. I am so sick of conspiracy theory. I am so sick of BS that goes on. It stops the ability for people to save themselves with honest money and the same goes with bitcoin. I’m not proselytizing. I’ve been the one bridge between precious metals and bitcoin. I follow the bitcoins saga for; I’ve been an owner for two years and learned as much about bitcoin as I have about precious metals and I understand how it works. I don’t need to watch a video to know it’s ridiculous [refering to the interview with SGTReport and Lynette Zang about ACChain].

If a person builds a financial bridge, a safety-net, and one pillar of this bridge is a digital illusion, backed by faith and credit and the other is money – actual money, not fiat currency, how stable will that bridge be once it is complete? Gold is money and everything else – everything else – is credit. “Everything else” would include bitcoin or any other cryptocurrency not backed with physical gold and even gold-backed cryptocurrencies, in my opinion, are suspect.

Read the rest of the article @ TheDailyCoin.org

America’s Supernova: The Final Stage Of Collapse

by Dave Kranzler, Investment Research Dynamics:

I started observing the slow-motion train-wreck in process in 2001 – a year removed from my perch as a junk bond trader on Wall Street and living several thousand miles away from NYC and DC in the Mile High City, where the view is a lot more clear than from either coast.

The United States has been in a state of collapse for several decades.   To paraphrase Hemingway’s flippant description of the manner in which one goes bankrupt:   two ways: slowly than suddenly (“The Sun Also Rises”).

The economic decay was precipitated by the advent of the Federal Reserve;  then reinforced by FDR’s executive order removing gold from the citizenry’s ownership, the acceptance of Bretton Woods, and the implementation of what is capriciously termed “Bretton Woods Two” – Nixon’s completely disconnecting the dollar from the gold standard.  If you study the monetary and  debt charts available on the St. Louis Fed’s website, you’ll see that post-1971 both the money supply and the amount of debt issued at all levels of the system (public, corporate, household) began gradually to go parabolic.

I would argue the political collapse kicked into high-gear during and after the Nixon administration, although I know many would argue that it began shortly after the Constitution was ratified in 1788.  At the Constitutional Convention, someone asked Ben Franklin if we now had Republic or a Monarchy, to which Franklin famously replied, “a Republic, if you can keep it.”

Well, we’ve failed to keep the Republic.  Now the political, economic and financial system is controlled by a consortium of big banks, big corporations, the Department of Defense and a handful of very wealthy individuals, all of which are ruthlessly greedy and misanthropic.

The current political and social melt-down is nothing more than a symptom of the underlying rot – rot that was seeded and propagated by the implementation of fiat currency and a fractional banking system.  The erection of the Fed gave control of the country over to those with the authority to create paper money and issue debt.

And now the political and social clime of the country has gone from ridiculous to beyond absurd.  James Kunstler wrote a must-read piece which captures the essence of the Dickensian  societal caricature that has sprung to life before our very eyes (Total Eclipse):

What do you know, long about Wednesday, August 16, 2017, House Minority Leader Nancy Pelosi (D-Cal) discovered that the United States Capitol building was infested with statues of Confederate dignitaries. Thirty years walking those marbled halls and she just noticed? Her startled announcement perked up Senator Cory Booker (D- NJ) who has been navigating those same halls only a few years. He quickly introduced a bill to blackball the offending statues. And, of course, the congressional black caucus also enjoyed a mass epiphany on the bronze and stone delegation of white devils…

…Just as empires tend to build their most grandiose monuments prior to collapse, our tottering empire is concocting the most monumentally ludicrous delusions before it slides down the laundry chute of history. It’s as if the Marx Brothers colluded with Alfred Hitchcock to dream up a melodramatic climax to the American Century that would be the most ridiculous and embarrassing to our posterity.

I would urge everyone to read the entire piece, which I’ve linked above.   And now for America’s coup de grace, it has offered up “president Trump,” which by the way would have been no better than the alternative.  Rather, it’s another symptom of the cancer beneath the skin.

Empires in collapse are at their most dangerous to the world when they are on the brink of imploding.  I was discussing this with a good friend the other day who was still clinging to the brainwashing we received in middle  school history classes that “America is different.” This just in:   it’s not.

The Financial Times has written a disturbing – yet accurate – accounting of the current turmoil facing the White House and the world (America Is Now A Dangerous Nation):

The danger is that these multiple crises will merge, tempting an embattled president to try to exploit an international conflict to break out of his domestic difficulties…Mr Gorka’s flirtation with the idea that the threat of war could lead Americans to rally around the president should sound alarm bells for anyone with a sense of history…Leaders under severe domestic political pressure are also more likely to behave irrationally.

In commentary which reinforces my view presented above, the FT article closes with:

A final disturbing thought is that Mr Trump’s emergence increasingly looks like a symptom of a wider crisis in American society, that will not disappear, even when Mr Trump has vacated the Oval Office. Declining living standards for many ordinary Americans and the demographic shifts that threaten the majority status of white Americans helped to create the pool of angry voters that elected Mr Trump. Combine that social and economic backdrop with fears of international decline and a political culture that venerates guns and the military, and you have a formula for a country whose response to international crises may, increasingly, be to “lock and load”.

Read More @ InvestmentResearchDynamics.com

RISK ON: WAR, ECONOMY, DEBT, DOLLAR – RISK OFF: GOLD

by Egon von Greyerz, Gold Switzerland:

Totally irresponsible policies by Governments and Central Banks have created the most dangerous situation that the world has ever experienced. Risk doesn’t arise quickly as the result of a single action or event. No, risk of the magnitude that the world is experiencing today is the result of many years or decades of economic mismanagement.

Cycles are normal in nature and in the world economy. And cycles that are the result of the laws of nature normally play out in an orderly fashion without extreme tops or bottoms. Just take the seasons, they go from summer to autumn, winter and spring with soft transitions that seldom involve drama or catastrophe. Economic cycles would be the same if they were allowed to happen naturally without the interference of governments. But power corrupts and throughout history leaders have always hung on to power by interfering with the normal business cycle. This involves anything from reducing the precious metals content of money from 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to nothing, printing money, leveraging credit, manipulating interest rates, taking total taxes to 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}+ today from nothing 100 years ago, etc, etc.

GOVERNMENTS DOING GOD’S WORK

Governments will always fail when they believe that they are gods. But not only governments believe they perform godly tasks but also hubristic investment bankers like the ex-CEO of Goldman Sachs who proclaimed that the bank was doing God’s work. It must be remembered that Goldman, like most other banks, would have gone under if they and JP Morgan hadn’t instructed the Fed to save them by printing and guaranteeing $25 trillion in 2008. Or maybe that was God’s hand too?

We now have unmanageable risks at many levels – politically, geopolitically, economically and financially.

This is a RISK ON situation that is extremely dangerous and will have very grave consequences. There is one very small but important silver lining which I will return to later.

1. RISK ON – US POLITICAL SITUATION AND WAR

When there are numerable risks that can all cause the collapse of the world economy, they all have equal relevance. However, the political situation in the USA is very dangerous for the world. This the biggest economy in the world, albeit bankrupt with debt growing exponentially and real deficits every year since 1960. Before the dollar has collapsed, the US will still be seen as a powerful nation although a massive economic decline will soon weaken the dollar and the country, burdened by debt at all levels, government, state, and private.

What makes the US particularly dangerous today is that the President is a lame duck. Both political parties are working against him and are trying every trick in the book to get him impeached. The Elite or powers that be are obviously also doing what they can to outmanoeuvre Trump and make him ineffective. But Trump is a fighter and will not give up easily. As he is virtually paralysed when it comes to any political or economic decision, what remains is military actions or war. As commander in chief, he has the ultimate say in pressing the nuclear button. He, like most of us, understands the catastrophic consequences of nuclear war. And we are not talking about just the US and North Korea. We would see China, Russia and many other countries involved. Wars are often started by an impulsive and power-hungry leader, which we certainly have in Kim and Trump.

Real power in the US comes from major sectors such as defence, energy, big pharma and investment banks. Their “contributions” to virtually all politicians is where the real power lies. When a leader is under major political pressure on the home front, starting a war quickly diverts the attention from domestic problems. And Trump would of course get total support from the military since their whole raison d’étre is war.

For Trump, a war would mean that he takes total control and all domestic squabbling is forgotten. He would be the king war maker and the “saviour” of the US.

Except for all the extreme consequences of a nuclear war, there will of course be serious economic implications such as stock and bond market collapses, dollar fall etc. There would also be massive money printing.

Hopefully it won’t come to this and Kim and Trump will realise the global catastrophe nuclear war would involve. But the risk is extremely high.

2. RISK ON – GLOBAL STOCK MARKETS

Stock markets worldwide are all in bubble territory. With volatility at historical lows and valuation at historical highs, stock market investors are displaying a total disregard for risk and reason. No trees grow to heaven even if it looks like it right now. Yes, bubbles can grow even bigger like the Nasdaq in 1998-2000. But investors should not worry about missing the last few points on the way up when the subsequent fall is 80{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} as happened to the Nasdaq 2000-2.

Virtually every stock market around the world is vulnerable. Below are monthly charts of the Nasdaq, TSX – Canada Nifty- India and Dax- Germany. All are showing a similar picture. They are severely overextended and have made new highs with bearish divergence. This means that the new highs are not confirmed by momentum indicators which are showing weakness. Other technical indicators are confirming that we are seeing long term tops in all stock markets and that the next major move will be a vicious and sustained fall. Thus, stocks are very high risk today medium to long term.

Read More @ GoldSwitzerland.com