Sunday, September 27, 2015

"Nothing's Safe" Passport's Burbank Warns "The Liquidity Of Everything Is Being Taken Down"

 Having warned that "we are on the precipice of a liquidation in emerging markets like the fourth quarter of 1997," Passport Capital's John Burbank sits down with RealVisionTV to discuss why "the Fed would eventually be forced into a fourth round of quantitative easing to shore up the economy." Being among 2015's best performing hedge funds, successfully navigating this turmoiling unwind of the Fed's efforts to "mean-revert" the world's assets back to normal, Burbank concludes, "nothing's safe," no matter what The Fed does, "the liquidity of everything is being taken down."

The Final Flush Is At Hand!

 Bill Holter
Holter-Sinclair collaboration.

QE to Infinity, followed by Gold balancing the balance sheets of the sovereign balance sheet disasters. Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold. It is just that simple. --Jim Sinclair 

My Dear Extended Family,       
Outright financial collapse, chaos and most probably war is not only in sight, it is imminent and unavoidable now. Normally I try to write and support my conclusions with current or past events via links to news. For this writing, because of the length and scope I don't plan to do this. It will be assumed that you as the reader have already heard of or read evidence of what is put forth as connectable dots.
This past week, the following article was forwarded all over the internet as Deutsche Bank is "all of a sudden news". Maybe this is a "German thing" with the latest out of Volkswagen? Deutsche Bank is not "all of a sudden", they have been a derivatives monster for years and were saved in 2008 with part of the $16 trillion the Fed generously sprayed all over the world. The title suggesting DB will be the equivalent of five Lehmans is on the right track but not nearly severe enough. They are tied with JP Morgan as THE largest holder of derivatives in the world. Should Deutsche Bank fail, EVERYTHING FINANCIAL FAILS! It can even be said, "the entire world is Lehman" just waiting for their credit line to be cut 48 hours before complete failure.
What we are looking at now it "the FINAL FLUSH" of the Western financial system. The Federal Reserve has lost all credibility. This has followed both the Bank of Japan and European Central Bank being seen as hopelessly neutered of the ability to support the system. Confidence was THE very last "hope" and the Fed gave even that away last week. Of course the mainstream media chimed in on Friday saying the "market was up in the hopes of a rate hike in December". Really? Are we to believe a tightening of credit is a good thing for a system buried in leverage and being dogged with liquidity drying up? This is like saying a flame thrower is the best tool for the California fires?
Money Velocity has crashed and so has global trade. Leveraged commodity trades have blown up and left many sectors dysfunctional. Has anyone stopped to think who (other than the sectors themselves) stands to lose with $45 oil? Maybe the lenders? Would this not tighten credit even further? Why do a dozen "advanced" economies already have stock markets in bear (minus 20%+) market territory?
Geopolitically we have watched as West has lined up against East militarily in many spots all over the world. The short list includes the South China Sea, Ukraine, Yemen and of course Syria. Russia began the build up militarily several weeks back along the Ukraine border and more recently inside Syria.   Now China is reportedly sending hardware to Syria including ships. These are not bluffs as active fighting already exists. Can the U.S. actually "win" in any of these arenas in conventional war? It's OK, you know the answer in your own mind, you also know what the alternative to losing conventionally is.
Before going any further I must ask you this question. Does the rule of law exist in the United States anymore? How many bankers went to jail over the blatant fraud in banking, real estate/mortgages? How many brokers went to jail for stacking MBS securities with guaranteed defaults while betting against the pools? How many exposed frauds within the Obama administration have gone un punished or even investigated? Do we really have three branches of government? Congress (Republicans) has done NOTHING they said they would when the public kicked out the snakes last November...only replaced by new ones apparently. The presidency has purged the armed forces of any conservative leadership and placed "czars" at the top of new and old agencies, what's up with this?... which leaves the Supreme Court. They now effectively "write law" as they "interpret" ALL law. The Supremes will never see a duck as a duck and will write interpretations declaring the Sun full in the sky at midnight ruling and no appeal! "We the People" are screwed!
Speaking of "We the People", while QE was used to mesmerize the middle class by holding the markets up, it in fact has gutted our real economy and has destroyed any possibility of making money the old fashioned way working! We now have one half or more of our population "taking" benefits and the other half "giving" them, any hope of a recovery led by the middle class is now gone as is the middle class.
Is it any wonder there are now shortages and tightness in the gold and silver markets? The East believes gold "IS" money, they also know the dollar is untenable and will not be a store of value. In fact, I believe China and Russia may step in to "help" the dollar fail. I still believe Mr. Putin will come forth with a "truth bomb", I would love to be a fly (although hidden bugs will probably be everywhere) on the wall at tomorrow's meeting between Presidents Xi and Obama. I can just imagine how the conversation might go, I cannot believe the U.S. will be barking ANY orders in any fashion. A sad statement but you must ask yourself this, does the U.S. have the power or ability to make demands? Remember, we are the debtor while they are the creditor!
In my opinion we are already well within the jaws of a meltdown/shutdown as liquidity is evaporating. There are a dozen developed countries with their stock markets already in bear markets (down 20% or more). All crashes come from oversold levels just as bank runs come on fast and are a surprise at the time. What is coming should be NO SURPRISE to anyone as we are looking at the end of not only an empire but of a flawed system which has endured for far too many years! This was a solvency problem in 2008 and "liquidity" was the incorrect tool used then. Now it is a bigger solvency problem with an illiquidity kicker attached ...while the Fed has already used every tool imaginable and every last ounce of credibility. The loss of confidence in the issuer of the world's reserve currency would be bad enough in an unlevered world, the loss of confidence in today's "debt world" will be a DISASTER!
To wrap this up, do not let anything that may happen from here surprise you. The conditions are ripe for global currency crises and a shutdown of credit. The conditions are also ripe for hot war to explode in multiple venues. A meltdown or shutdown of markets will serve as a FINAL FLUSH of what remains left of the U.S. middle class. Without the "wealth" in stocks and homes, psychology will be toast. The U.S. is creating "income" from actual work at a third world level which is exactly where we are headed as our standard of living is "borrowed rather than owned". My point is this, a market meltdown and credit shutdown will make the U.S. look like 1985 Bombay within weeks as we create nothing and have saved in "nothings" and owe everyone. This is the rosy scenario and assumes that martial law is not instituted (a poor assumption in my opinion!).
Standing watch with tears in my eyes,
Bill Holter
Holter-Sinclair collaboration
Comments welcome!

Of Greater Fools, Bigger Liars, & A Society In Decline

Whether it’s the economy, climate, the planet, warfare, your future obligations, your pensions, the future of your children, nobody in power tells you the truth. Human life is fast losing the value we would like to tell ourselves we assign to it. We don’t, do we? Our technological advances haven’t come with moral advances, quite the contrary, our morals turn out to be a thin layer of mere cheap veneer. What advances we’re making are the last death rattle of a society in decline, and a dying civilization.

What Recovery? 9.4 Million More Americans Below Poverty Line Than Pre-Crisis

Despite the Fed continuing to kick this down the road, they continue to claim that we are in the middle of an ongoing recovery. There’s just one problem with that: things are getting worse than pre-crisis levels for millions of the poorest Americans. Possibly even more concerning is the fact that the amount of Americans living below the poverty line has soared since 2007.


Wholesale Money Markets Are Broken: Ignore "Perverted" Swap Spreads At Your Own Peril

At the height of the financial crisis, the unprecedented decline in swap rates below Treasury yields was seen as an anomaly. The phenomenon is now widespread, as Bloomberg notes, what Fabozzi's bible of swap-pricing calls a "perversion" is now the rule all the way from 30Y to 2Y maturities. As one analyst notes, historical interpretations of this have been destroyed and if the flip to negative spreads persists, it would signal that its roots are in a combination of regulators’ efforts to head off another financial crisis, China selling pressure (and its impact on repo markets) and "broken" wholesale money-markets.

Paul Craig Roberts Warns "The Entire World May Go Down The Tubes Together"

Neoliberal economics is blind to reality and serves to justify the destruction of the economic prospects of the Western World. It remains to be seen if Russia and China can develop a different economics or whether these rising superpowers will fall victim to the “junk economics” that has destroyed the West. With so many Chinese and Russian economists educated in the US tradition, the prospects of Russia and China might not be any better than ours. The entire world could go down the tubes together.

Western Propaganda Machine Kicks Into Overdrive As UK Brands Assad "A Butcher", France Bombs Syria In "Self Defense"

"He’s butchered his own people, he’s helped create this conflict and this migration crisis, he’s one of the great recruiting sergeants for ISIL."

The "Hard-Landing" Has Arrived: Chinese Coal Company Fires 100,000

In a move that would make even Hewlett-Packard's Meg Whitman blush, Harbin-based Heilongjiang Longmay Mining Holding Group, or Longmay Group, the biggest met coal miner in northeast China which has been struggling to reduce massive losses in recent months as a result of the commodity collapse, just confirmed China's "hard-landing" has arrived when it announced on its website it would cut 100,000 jobs or 40% of its entire 240,000-strong labor force.

Chinese GDP Propaganda Full Frontal: Plunge In Key Data Points Pitched As Bullish

"The discrepancy between economic growth and the two key indicators' growth in the first six months did not fit with previous patterns, but industrial restructuring is a new factor, and should be taken into account when analyzing the new situation."

The New World Financial Disorder

The global Bubble is bursting – hence financial conditions are tightening. Bubbles never provide a convenient time to tighten monetary policy. Best practices would require central bankers to tighten early before Bubble Dynamics take firm hold. Central bankers instead nurture and accommodate Bubble excess. It ensures a policy dead end -  the faltering global Bubble has progressed beyond the point where Fed rate policy has much impact.

US On The Ropes: China To Join Russian Military In Syria While Iraq Strikes Intel Deal With Moscow, Tehran

The Psychopath Next Door – Snakes In Suits

from Jesse’s Café Américain:
“They often make use of the fact that for many people the content of the message is less important than the way it is delivered.
A confident, aggressive delivery style – often larded with jargon, clichés, and flowery phrases – makes up for the lack of substance and sincerity in their interactions with others … they are masters of impression management; their insight into the psyche of others combined with a superficial – but convincing – verbal fluency allows them to change their personas skillfully as it suits the situation and their game plan.
They are known for their ability to don many masks, change ‘who they are’ depending upon the person with whom they are interacting, and make themselves appear likable to their intended victim…
Read More

Nigel Farage on UKIP and out referendum campaign

from liarpoliticians:

Fukushima News: 100% Meltdown In Reactor 2 Likely; Tepco IGNORED Tsunami Risk Assesment

[Ed. Note: Please be advised, 70 – 100% of the nuclear fuel in Reactor 2 has melted down. There is NO nuclear fuel left in Reactor 1 which has already breached the core’s base (China syndrome). Fukushima is a Pacific genocide.]
from MissingSky101:

Nuclear Expert: US West Coast being continuously exposed to Fukushima radioactive releases, it’s an ongoing tragedy — Marine Chemist: Impossible to stop nuclear waste flowing into ocean; “It never will be… that’s what keeps me up at night” — Radiation levels spiked 1,000% since floods

Real Off Grid Living

from engineer775PracticalPreppers:

Ginger: 10,000x Stronger Than Chemo (Taxol) In Cancer Research Model

from The Sleuth Journal:

A new study reveals ginger contains a pungent compound that could be up to 10,000 times more effective than conventional chemotherapy in targeting the cancer stem cells at the root of cancer malignancy. 
A new study published in PLoS reveals a pungent component within ginger known as 6-shogaol is superior to conventional chemotherapy in targeting the root cause of breast cancer malignancy: namely, the breast cancer stem cells.
Read More

“Super tea” has 10 times more antioxidants than regular green tea

by Pulford, Natural News:
Most Natural News readers know and understand the health benefits of green tea, but a new kind of “super tea” has been found to have as much as ten times more antioxidant content than regular green tea.
As reported by Fox News, the antioxidants in green teas have long been known to dramatically improve heart health and brain function, but now researchers have found that matcha, a powder made from young green tea leaves that are placed in shade two to four weeks before harvesting, contain several times more antioxidants.
“When it’s shaded for that long, you up the chlorophyll, you up the antioxidant level, and it just completely changes the profile of the plant,” Dr. Mariza Snyder, author of The Matcha Miracle, told Fox News. “After they harvest, they steam, dry, then grind it with a stone grinder. You’re consuming the entirety of the leaf.”
Read More

71-Year-Old Arrested For Widespread "Hitlerization" Of Shinzo Abe Posters

Having achieved his militarist goals, amid massive protests and plunging popularity, it appears Shinzo Abe is rapidly taking gaining on Vladimir Putin's spot atop the tyrannical-dicators-of-the-world-meme. By pushing through this change to Japan’s pacifist constitution, Japan’s nationalists have gotten their foot in the door, so to speak; and as Pater Tenebrarum notes, once a long-held principle is abandoned, further steps to alter the legal framework are usually not long in coming, prompting, as reports, a 71-year-old man to allegedly deface roughly 30 political posters - drawing a hitler-esque moustache on Abe posters.

Did The PBOC Covertly Buy 1,747 Tonnes Of Gold In London?

The Western gold space has learned a great deal about the Chinese gold market and global gold flows, though we’re always left with loose ends. For example, the issue regarding PBOC gold purchases; how much gold do they truly have and where was it bought? Does the PBOC buy 400-ounce Good Delivery (GD) bars in London and covertly transports these gold bars to its gold vaults in China mainland, or are the Good Delivery gold bars shipped to Switzerland, refined into 1 Kg 9999 gold bars, sent forward to the Chinese mainland where they’re required to be sold through the SGE gold exchange and from where they can be bought (in clear sight) by the PBOC.

Catalan 'Secessionists' Set To Win Election Amid Record Turnout


The Bull/Bear 'High Stakes Poker' Game Is Down To The Final Table

High stakes poker, winner takes all. Traders better have their trade plans ready: The next 3 weeks will likely determine whether we enter a lengthy bear market or whether bulls can use coming positive seasonality to avert a major market break one more time. As the following charts show, by the end of October we shall have confirmation one way or the other...

Actually it's really 22.9 % according to the only reliable source available...

Dear Janet Yellen, Here Is All You Need To Know About The US Economy: True Unemployment Is Over 12%

Dear Fed Chairwoman Yellen: if you are still confused why there is so much slack and so little wage growth in the US economy despite the 5.1% "reported" unemployment rate, here is the answer: instead of a 5.1% unemployment rate in August, the true unemployment rate in the "land of the free" has been rising ever since the financial crisis, and is above 12% for the past three years.

Rumors Persist That The CIA Helps Export Opium From Afghanistan

Despite billions spent to eradicate opium crops in Afghanistan, the crop is more popular than ever there, leading many to wonder whether some U.S. forces may actually be encouraging its growth and the heroin it later becomes.

Gold "Tightness": When There's No More To Sell, There's No More To Buy (At Any Price)

"...there’s an enormous and growing disconnect between the cash and physical markets for gold. This is exactly what we would expect to precede a major market-shaking event based on a physical gold shortage."

Question Of The Day


As A Very "Grim" Earnings Season Unfolds, All Eyes Will Be On This Company

And for once it isn't Apple...


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