Thursday, February 11, 2016

Is This The Biggest Crisis In History?

The previous "biggest crisis in history" was in 1893 when a serious economic depresion hit America... we just topped that in terms of "crisis"

Lines Around The Block To Buy Gold In London; Banks Placing "Unusually Large Orders For Physical"

This is the best quarterly performance for Gold in 30 years... "It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block..."

Canada Sells Nearly Half Of All Its Gold Reserves

The government of Canada sold off nearly half its gold reserves in recent weeks, continuing a pattern of moving away from the precious metal as a government asset. According to the International Monetary Fund’s International Financial Statistics, Canada held three tonnes of gold reserves as of late 2015. The latest data, published last week, show the total Canadian gold reserves now stand at 1.7 tonnes. That’s just 0.1 per cent of the country’s total reserves.

If Credit Is Right, The S&P Is Facing A 40% Crash

...and credit is always right in the end!

Liberty Activists And ISIS Will Soon Be Treated As Identical Threats

When all is said and done, who is the greater threat to you and your freedoms? A psychotic theocrat that has taken his religion so far into the forbidden zone that any evil, no matter how heinous, is justified through the circular logic of zealotry? The criminal government that funded that psycho, trained him, slapped a rocket launcher in his hands and then gave him a free plane ride to your favorite shopping mall? Or, some weirdo that stores lots of food and gas masks in his basement and every once in a while talks to you about 9/11? Come on, think about it…

This Is What Central Bank Failure Looks Like (Part 4)

First, it was The BoJ's utter collapse from omnipotence to impotence. Then came the collapse of The Fed's credibility in the short-term.... and the longer-term. And now it is the turn of Mario Draghi's ECB to face total failure, as the European banking system - the prime beneficiary of "whatever it takes" - has crashed back to pre-Draghi levels.

JPM's Kolanovic Warns Upcoming Recession Could Be Comparable To 2008 Crisis; Says "Buy Gold, Cash And VIX"

"Gglobal markets are now facing a significant ‘negative wealth effect’ that has a potential to result in a recession. This negative wealth effect of low commodity prices and a strong USD combined with the slowdown in China could be comparable to that of the 2008/2009 crisis (it involves diverse effects ranging from layoffs in the Global Energy sector to a lack of EM Sovereign wealth flowing into developed market equity hedge funds). While the economists were debating if the low-priced oil is good or bad for the economy, the equity markets never had any doubts – Oil and Equities were moving down together."

Crushing The "Oil's Just A Supply Issue" Meme In 1 Painful Chart

Day after day we are told that the plunge in oil prices (just like the collapse in The Baltic Dry freight index) is a "supply" issue... it's transitory and global demand is doing fine thank you very much. Sadly, as everyone really knows deep down inside their Keynesian hearts, this is utter crap and as Barclays shows the shocking 18% YoY crash in distillates "demand" - something that has never happened outside of a recession - blows the one-sided argument of the energy complex out of the water.

Abewrongics - 16 Months Of Japanese Money-Printing For Nothing

Neither USDJPY nor Japanese stocks can hold a bid in the early going in Asia markets which has dragged both into the red post-QQE2. Since Kuroda took over from The Fed by doubling down on his cunning plan in October 2014, Japanese stocks are down 11.4%, USDJPY is unchanged, and only Japanese bonds have made any gains (up 3.7%). So what we want to know is - how will Abe et al. explain to the Japanese people how they lost so much of their retirement funds by forcing GPIF to allocate so much to stocks?

HSBC Cancels Pay Freeze After Two Weeks Following "Staff Revolt"

“We have listened to feedback and as a result decided to change the way these cost savings are to be achieved"...

The War On Cash - The Central Banks' Survival Campaign

"The preservation of an insolvent currency system requires that the owners of currency have no way to protect it..."

Iran Holds Nothing Back: "It's A Weird Suicide Mission That Will Have A Very Dark End"

“This would mean a regional war. Mistakes can’t be tolerated, especially with the tension mounting around the region. It’s not about Iranians, but about all troops on the ground fighting with the Syrian army. How would the Syrian army deal with a foreign country on its soil, without its permission, and maybe aiming [guns] at them?"

The Best And Worst Performing Assets Since The End Of QE3

Since The Fed stopped its money-printing extravaganza things have changed a little for the status-quo "believers"...

Russian Prime Minister Warns There Will Be A "Permanent World War" If Saudis Invade Syria

"Do they really think they would win such a war very quickly? That's impossible, especially in the Arabic world. There everyone is fighting against everyone... everything is far more complicated. It could take years or decades."

America's National Debt Bomb Caused By The Welfare State

The news is filled with the everyday zigzags of those competing against each other for the Democrat and Republican Party nominations to run for the presidency of the United States. But one of the most important issues receiving little or no attention in this circus of political power lusting is the long-term danger from the huge and rising Federal government debt.

Here Is The Real Reason Why Authorities Want To Ban High Denomination Bank Notes

Here is the real reason why suddenly high denomination bank notes are the target: it is not because "drug dealers" and tax-evaders use them, but because between banning Europe's €500 bill and the US $100 bill, over half of all physical currency currently in circulation would disappear.

JPM: "Things Have Gotten Out Of Control: People Have More Confidence In Gold Than In Paper Money"

" at $1,200 an ounce, what does that tell you? It tells you that in a flight to quality, in a safe haven, people have more confidence in gold than in bank deposits or paper money. I think things have gotten out of control."
- Bob Michele, Global CIO & Head, Global Fixed Income, Currency & Commodities Group"

Jeff Gundlach: Gold To $1,400 As Faith In Central Banks Is Lost

In his latest communication with the outside world, Gundlach said that gold prices are likely to reach $1400 an ounce "as investors lose faith in central banks", Reuters reported. "The evidence that negative rates are harmful and not helpful has piled up to the point that the 'In Central Banks We Trust' mantra has finally been laid bare as a hoax,"

If You Want To Be Wealthy, Don't Buy A House - Build A Business

The key take-away: focus on owning income-producing assets, not a primary residence. Don't finance your assets with debt; finance your income-producing assets with savings and sweat equity, not borrowed money.

Millennials Now Prefer Socialism To Capitalism

"Feel the Bern"...

Through The Looking Glass On Rates

Negative interest rates act effectively as a hidden tax funneled directly to banks. They are inherently unhealthy. Currently, they could indicate also a measure of unease among two of the four most powerful central banks. If so, that could well escalate.

"Billions Lost"

"While buybacks work great during bull market advances, as individuals willfully overlook the fundamentals in hopes of further price gains, the eventual collision of reality with fantasy has been a nasty event..."

This Is What Central Bank Failure Looks Like (Part 3)

First, it was The BoJ's utter collapse from omnipotence to impotence. Then came the collapse of The Fed's credibility in the short-term. And now, in the most egregious example of total central bank failure - the 'market' has priced out any chance of a rate hike through 2018... and in fact, there is now a greater chance of a rate-cut (than rate-hike) into 2017.


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