Holding gold is simply recognition that the Fed’s actions over the last 30 years have potentially severe consequences that pose threats to the value of most financial assets, the almighty dollar and ultimately your clients’ purchasing power. Owning gold is in effect not only a short on the dollar and on the credibility of the Federal Reserve, but most importantly a one of a kind asset that protects wealth.
Submitted by Tyler Durden on 09/25/2015 - 16:05
Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that shock and fear is coming. He also discussed what every person must know ahead of this collapse.
Life all comes down to a few moments. This is one of them.” — Bud Fox (Wall Street)
Egon von Greyerz: “So here we are, Eric, at the moment when the world and especially the Western world will have the most unpleasant wake-up call. What started in 2008 was a warning that was heeded by very few people…
Submitted by Tyler Durden on 09/25/2015 - 14:50
Submitted by Tyler Durden on 09/25/2015 - 17:03 As documented here and elsewhere, in addition to the Pope and Putin, the third world leader US president Obama is "historically" meeting this week is China's President, and General Secretary of the Chinese Communist party, Xi Jinping. But just like everywhere else, the president is mostly a figurehead for far greater political and primarily financial interests backing him. So who calls the shots in China? The following infographc lays out the key power divisions of political, economic and financial power in China at this moment.
Submitted by Tyler Durden on 09/25/2015 - 16:51 Yellen’s detailed speech initially triggered an out-sized market reaction. Unfortunately, it was mainly due to shallow market depth and weak-hand positions. Yellen’s speech should quickly begin to hurt over-priced financial assets. Yellen’s speech was the first time I can ever remember a Federal Reserve Chairperson commenting that inappropriate risk-taking might be undermining financial stability. This is explicit confirmation that the Fed’s aim of lifting asset prices in the hopes they bolster broader economic activity has reached the end of its useful life. Barring a financial or economic disaster, the ‘Fed put’ has been put out to pasture.
Submitted by Tyler Durden on 09/25/2015 - 16:30 The current surge in dis-inflationary pressures is not just due to the recent fall in oil prices, but rather a global epidemic of slowing economic growth. While Janet Yellen addressed this "disinflationary" wave during her post-meeting press conference, the Fed still maintains the illusion of confidence that economic growth will return shortly. Unfortunately, this has been the Fed's "Unicorn" since 2011 as annual hopes of economic recovery have failed to materialize. However, it is these ongoing views of optimism that have collided with economic realities.
Submitted by Tyler Durden on 09/25/2015 - 15:50 Presented with no comment...
Submitted by Tyler Durden on 09/25/2015 - 15:33
- Peak in liquidity
- Deflationary recovery
- Manufacturing recession
- Capitulation of the "strong $" & "TINA" trades
Submitted by Tyler Durden on 09/25/2015 - 15:10 In any bull market, certain excesses are built up during its duration. The build up of these excesses, in metrics like margin debt, can serve as a tremendous tailwind for the market…as long as they continue to rise. However, when the music stops and the market declines, these tailwinds become headwinds. This is particularly true of margin debt as margin selling necessarily exacerbates the damage in a large decline. We do not know for sure if the recent margin debt retrenchment is the beginning of a longer trend. However, given the record high levels it recently achieved, should a longer, more serious decline in the stock market be starting, the large potential risk represented by record margin debt levels will turn into large actual risk.
Submitted by Tyler Durden on 09/25/2015 - 14:37 In the aftermath of John Boehner's surprising resignation announcement, the punditry has been scrambling to opine what this departure means for the odds of a government shut down, some saying the likelihood has increased, while others, such as Goldman, confident shutdown odds are materially reduced. The truth is likely in the middle, and while the odds of a government shutdown next week are reduced as a Continuing Resolution now appears more feasible, the probability of a broader shutdown in December once the CR expires, have materially risen.
Submitted by Tyler Durden on 09/25/2015 - 14:24 With NKE almost single-handedly holding The Dow up, the rest of the US equity market is rapidly giving back any gains from a hawkish Yellen and 'fixed' European automaker market. Notably, Dec rate-hike odds were 41% pre-Yellen, jumped to 49% earlier this morning, but have now fallen back to 42%... so the 'market' is not "embracing" a rate hike environment as one supposed expert said this morning...and the Biotech bloodbath is weighing everything down...
Submitted by Tyler Durden on 09/25/2015 - 13:51 Now that concerns about a biotech top are in play, biotechs just can't seem to catch a bid, and as of moments ago were down over 3% dragging the Nasdaq just barely positive for the day even with the S&P up 0.8% One reason for the continuied weakness may be that, as Bank of America points out, there are signs the dreaded head and shoulders top has appeared in the Nasdaq Biotech Index.
Submitted by Tyler Durden on 09/25/2015 - 18:00 "The influx of migrants is not going to abate. We want to stop people crossing."
Dear Friend of GATA and Gold:
The New York Times today published an interesting report about an exhibition in Manhattan of artistic gold relics from the Philippines. The first two paragraphs are appended, along with a link to the full report.
But the report may be most important for an observation deeper into the text: “Gold was always plentiful in the Philippines, readily collected by panning. Today the country is said to have the world’s second richest gold deposits.”
“Second richest gold deposits” — and yet the Philippines is a dreadfully poor country.
n the course of the last two years, Pope Francis has been portrayed in chorus by the Western media as an antiwar activist and a left leaning champion of “Liberation Theology” committed to World peace and global poverty alleviation.
His September 24 speech to the US Congress was described as “stunning in the breadth, depth, and conviction of its progressivism.”
“If President Barack Obama had delivered the text of Pope Francis’s speech to Congress Thursday [September 24, 2015] as a State of the Union address, he would have risked being denounced by Republicans as a socialist.”Read More
We have heard it so many times: investors need to buy low and sell high. In other words, invest when there is blood in the streets.
The precious metals sector has seen blood in the last 2 years. The question is: have investors been buying into this sector?
One thing is for sure: really smart and wealthy investors, the sorts of Stan Druckenmiller, Marc Faber, George Soros, have been accumulating gold mining stocks as the sector have been going through their worse bear market ever. The returns on their investments over the course of the following years will undoubtedly be significant … because they have done exactly what have made them super rich, i.e. buying when everyone is selling.
I shall briefly address the impact of negative interest rates, should they occur, at the end of this report, after looking at this week’s trading.
The week started with a slow downwards drift for precious metals on Monday and Tuesday before a sharp two-day rally, taking the gold price up $33 (nearly 3%) by yesterday afternoon. There was very little gold-related news to trigger this rally, only the deterioration of other markets. For bulls of precious metals it really has been a case of patience being rewarded.
Those who have followed the advice of the major investment houses must be badly bruised. For them, equities should be wending their bullish way and gold challenging the $1,000 level. The evidence is mounting that to continue with this investment philosophy will likely be increasingly costly.
I was quite irritated by the spectacle of the Pope giving a speech to Congress today. Perhaps if the circus had been hosted at the National Cathedral and the Congressmen were forced to donate their Taxpayer funded salary attributable to the time spent listening to the Pope, I would have been okay with it. But, then again, if the Congressmen were docked pay for time spent in the Pope’s audience, I doubt very many would have attended.
I will say that I was somewhat consoled by noticing that the Supreme Court Justices remained seated and solemn during the entire event, not even clapping along with the Congressional hypocrites at the designated “clap times.”
You would think that the simultaneous crashing of all of the largest stock markets around the world would be very big news. But so far the mainstream media in the United States is treating it like it isn’t really a big deal. Over the last sixty days, we have witnessed the most significant global stock market decline since the fall of 2008, and yet most people still seem to think that this is just a temporary “bump in the road” and that the bull market will soon resume. Hopefully they are right. When the Dow Jones Industrial Average plummeted 777 points on September 29th, 2008 everyone freaked out and rightly so. But a stock market crash doesn’t have to be limited to a single day. Since the peak of the market earlier this year, the Dow is down almost three times as much as that 777 point crash back in 2008. Over the last sixty days, we have seen the 8th largestsingle day stock market crash in U.S. history on a point basis and the 10th largest single day stock market crash in U.S. history on a point basis. You would think that this would be enough to wake people up, but most Americans still don’t seem very alarmed. And of course what has happened to U.S. stocks so far is quite mild compared to what has been going on in the rest of the world.
Study find arteriosclerosis is one of the diseases that causes the most deaths instead of cancer around the world each year. This is because certain foods lead to plaque buildup in the arteries, blocking blood flow and increasing heart attack chance. Arteries are blood vessels charged for transporting oxygen-rich blood from the heart to every other tissue in our bodies. Unhealthy diet badly affects your body especially your circulatory system.
Here are some food that can clean your arteries and increase blood circulation