Monday, January 4, 2016

This Time Isn't Different

The reckless herd has been in control for the last few years, but their recklessness is going to get them slaughtered. Corporate profits are plunging. Labor participation continues to fall. A global recession is in progress. The strong U.S. dollar is crushing exports and profits of international corporations. Real household income remains stagnant, while healthcare, rent, home prices, education, and a myriad of other daily living expenses relentlessly rises. The world is a powder keg, with tensions rising ever higher in the Middle East, Ukraine, Europe, and China. The lessons of history scream for caution at this moment in time, not recklessness. 2016 will be a year of reckoning for the reckless herd.

Saudi Arabia Bans Flights, Travel To Iran

This morning, the headlines surrounding what's quickly mushroomed into a Mid-East melee are coming fast and furious and in the latest escalation, the Saudi foreign ministry says the kingdom will now cut all commercial ties with Iran.

Industrial Recession Now Inevitable As Manufacturing ISM Worst In Six Years

Following China's disappointing drop in Manufacturing PMI overnight, this morning started off poorly with Canada's PMI crashing to its lowest reading since records began at 47.5. Then US Manufacuring PMI tumbled to 51.2 - its lowest print since October 2012 (with US factory orders collapsing to weakest since 2009). But The ISM Manufacturing crashed to 48.2 (deep in contraction) - the weakest level since June 2009.

As S&P Flirts With 2000, Here Are The S&P Support Levels

The S&P 500 is down over 2% at the cash open - with FANTAsy stocks collapsing 5-8% - flirting with the crucial 2,000 "mission accomplished" level. Here are the short-term support levels..

As Stocks Plunge, Swedish Central Bank Holds Extraordinary Meeting, Says Will "Instantly Intervene" If Necessary

Markets have started 2016 with a healty dose of turmoil, and so many were wondering how long - and who - would be the first central bank to intervene in either directly or verbally in markets. Moments ago we go the answer when Sweden's Riksbank announced it has held an extraordinary monetary policy meeting in which it took the decision required to be able to "instantly intervene on the foreign exchange market if necessary, as a complementary monetary policy measure, to safeguard the rise in inflation."

Mining Co. CEO: “Very Sophisticated High Net Worth Investors Are Buying Up Physical Precious Metals”

by Mac Slavo, SHTFPlan:
According to the CEO of one of the world’s top primary producers of silver, looming precious metals shortages could drive the price of gold to $5000 and silver to $100 over the next three to five years. Keith Neumeyer, who oversees First Majestic Silver and is also the Chairman of mineral bank First Mining Finance, says that with commodity prices in capitulation mining companies around the world are either reducing operations or outright shutting down, the consequence of which will be a supply crunch across the industry and a resurgence in precious metals prices.
And Neumeyer isn’t the only one who sees the trend developing. Well known investment billionaires like George Soros and Carl Icahn are rushing into gold. Soros is so convinced that a paradigm shift is in the works that after warning of financialcollapse and violent riots in America he sold his holdings in major U.S. banks and allocated more of his portfolio into gold mining firms.
Read More

Greek Bank "Jog" Accelerates As Central Bank Warns "Greece Unlikely To Survive Another Bout Of Instability"

Something unexpected happened on the road to the latest Greek "recovery": the local population no longer believes one is coming.

The Best And Worst Performing Assets Of 2015

With markets wrapped up for 2015 now, reviewing the performance of asset classes last year shows that it was one where negative asset class returns were aplenty, while those finishing in positive territory were few and far between. Indeed, of the 42 assets we monitor in Figure 5, just 9 finished with a positive return in Dollar-adjusted terms over the full year.  At the other end of the scale there were some notable losers.

Gold & Silver Surge On Heavy Volume

Mid-East Melee: Sectarian Showdown Looms As Bahrain Cuts Ties With Iran, UAE Recalls Ambassador

What began with the execution of a prominent Shiite cleric in Saudi Arabia has devolved into a full blown sectarian showdown with Bahrain cutting diplomatic ties with Iran, the UAE recalling its ambassador, Sudan expelling the Iranian mission, and Iraqi Shiites attacking Sunni mosques. In short: tinder box meet spark.

JPMorgan Crushes The BTFDers: "Sell Any Rallies"

It didn't take long for the momentum-chasing fundamental strategists to readjust their immediate stock price targets on the heels of the i) failure of the Santa Rally and ii) the worst start to the year in Chinese stock market history.  Case in point, moments ago JPM's equity strategy team released its first note for the year in which it says that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one."

Happy New Year: Global Stocks Crash After China Is Halted Limit Down In Worst Start To Year In History

It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...

China Halts Stock Trading For Day After Entire Market Crashes

Following the initial halt in CSI-300 Futures at the 5% limit down level, the afternoon session opened to more carnage and amid the worst 'first day of the year' in at least 15 years, Chinese stocks collapsed further to a 7% crash. At 1334 local time, stock trading was halted for the rest of the day across all exchanges (at least two hours early). Dow futures are now down over 150 points from NYE close, Gold and Treasuries are bid, and offshore Yuan has plunged most since the August devaluation.

Dow Futures Dump 300 Points From New Year's Eve Highs As China Crashes

With China closing the morning session limit down (and Yuan collapsing), US equity futures are extending their losses (even though crude futures are holding some of their gains). The initial knee-jerk jump as crude rose on Saudi tensions has been entirely erased and Dow Futures are now down 300 points from New Year's Eve highs... Happy New Year.

What Really Happened In 2015, And What Is Coming In 2016…

by Michael Snyder, The Economic Collapse Blog:

A lot of people were expecting some really big things to happen in 2015, and most of them did not happen.  But what did happen?  It is my contention that a global financial crisis began during the second half of 2015, and it threatens to greatly accelerate as we enter 2016.  During the last six months of the year that just ended, financial markets all over the planet crashed, trillions of dollars of global wealth was wiped out, and some of the largest economies in the world plunged into recession.  Here in the United States, 2015 was the worst year for stocks since 2008nearly 70 percent of all investors lost money last year, and it is being projected that the final numbers will show that close to 1,000 hedge funds permanently shut down within the last 12 months.  This is what the early stages of a financial crisis look like, and the worst is yet to come.
Read More…

While Americans Were Celebrating New Years, Something Happened To Hillary She WON’T Want You To See

from Western Journalism:

More than 3,000 of Hillary Clinton’s emails were released Thursday under a court order requiring all of the messages from her private server to be released — with redactions — by the end of January.
The emails — buried in the American media under New Year’s Eve festivities — include these tidbits:
“I only know what I hear from NPR,” Clinton wrote at one point about whether to declare a travel advisory to one troubled region.
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The Right To Keep And Bear Arms – Student Essay

by 14yo Anonymous Student, WhatReallyHappened:

In 1791, the founders of the United States wrote, “A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.” This is the Second Amendment, guaranteeing American citizens the right to self-protection and safety. Society is safer when people carry guns because it gives citizens the ability to protect themselves from threats like criminals, such as violent intruders and attackers, as well as violent shooters.
People should be able to carry firearms because your most fundamental right is your right to defend your life, and guns help secure that.
Read More…

Know Nothing – The Reality of the American Experience

from BATR:
Oh, remember those “good old days”. Discrimination and ethnic exclusion was the norm and a political party stood for “red meat” self-interest. The catcalls today ring with a “PC” note, how dare anyone even allude that restricting immigration can be part of open debate? The memory of the American Republican Party fades into vagueness of ignorance, knowing history is not a requirement of the modern Know Nothings. If you are one of these marginal historians, how can you be expected to appreciate the anti-immigrant sentiment that existed over a century and half ago?
Just how rewarding has, the long corrosive experiment of open border been to the average family and taxpayer! Ask the discerning author, Frosty Wooldridge, who is an unambiguous source of the topic.
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From Baghdad to Bahrain…From Beruit to Tehran – Tensions Are Exploding Across the Middle East

from Liberty Blitzkrieg:
Either the rebel prince succeeds in convincing enough people who matter to remove the King, or the King counters and drives the prince out. The former situation is far and away the best option for stability in the Middle East, and would likely allow the Saudi royal lineage to hold on to power for longer. If the second scenario unfolds, current leadership will crack down even harder on dissent and run the state further into the ground. This behavior will ultimately lead to an unpredictable and likely violent revolution, and if you think the Middle East is volatile now, you ain’t seen nothing yet.
As John F. Kennedy accurately noted:
Those who make peaceful revolution impossible will make violent revolution inevitable.
This also applies to Saudi Arabia.
– From the post: Regime Change is Coming – Saudi Prince Calls for Coup to Remove King
Read More

The Looming Environmental Disaster in Missouri that Nobody is Talking About

by Claire Bernish, Activist Post:
What happens when radioactive byproduct from the Manhattan Project comes into contact with an “underground fire” at a landfill? Surprisingly, no one actually knows for sure; but residents of Bridgeton, Missouri, near the West Lake and Bridgeton Landfills — just northwest of the St. Louis International Airport — may find out sooner than they’d like.
And that conundrum isn’t the only issue for the area. Contradicting reports from both the government and the landfill’s responsible parties, radioactive contamination is actively leaching into the surrounding populated area from the West Lake site — and likely has been for the past 42 years.
In order to grasp this startling confluence of circumstances, it’s important to understand the history of these sites. Pertinent information either hasn’t been forthcoming or is muddied by disputes among the various government agencies and companies that should be held accountable for keeping area residents safe.
Read More

Saudis Act Like ISIS, Says Iran’s Revolutionary Guard Amid Seething Sectarian Tensions

by Patrick Goodenough, CNSnews:
Saudi Arabia severed diplomatic ties with Iran Sunday in response to damage caused to its embassy in Tehran, as Shi’ites in Iran and across the Islamic world protested the execution by the Saudis of a prominent minority Shi’ite cleric.
The world’s foremost Sunni and Shi’ite nations accused each other of stoking sectarian strife and promoting terrorism.
Saudi Arabia on Saturday executed 47 people accused of terrorism, including al-Qaeda convicts and a Shi’ite cleric and persistent critic of the Sunni ruling family, Nimr Baqr al-Nimr. Beheadings took place in eight cities and execution by firing squad in another four, according to Saudi authorities.
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Feds Preparing “Multi-Agency” Action In Oregon As Patriot Militia Says They Are “Willing To Kill And Be Killed”

by Mac Slavo, SHTFPlan:

What started as a peaceful protest in Burn, Oregon over the imprisonment of two ranchers who lit fires on federal land to curb the growth of invasive plant species and reduce the risk of wildfires on their property has turned into an armed standoff pitting the Federal government against armed Patriot militiamen.
Joining the Burn protest were Ammon and Ryan Bundy, the sons of Nevada rancher Cliven Bundy who was at the center of a grazing rights dispute in Bunkerville, Nevada in 2014. At Bunkerville as many as 5,000 armed individuals from around the country joined the dispute and eventually pushed back scores of heavily armed Federal government agents. At the time, Senator Harry Reid called Bundy supporters “nothing more than domestic terrorists.”
Read More

China ETFs Extend Asian Carnage - Crash Most Since August To 3-Month Lows

Having been halted down around 7% overnight, China's CSI-300 index is extending its losses in US trading as ASHR (the CSI-300 tracking ETF) is down 9% - its biggest drop since the August collapse. This plunges Chinese stocks to 3-month lows...


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