We have very interesting market action today and Gold is knocking now on $1,200 with Barclays bank halted in London due to the market volatility and Deutsche Bank crashed over 11% to 7 year lows. Gold is breaking out from the down trend now. FED will save the market, but we can forget now about 4 FED rates hikes for sure. Gold must retake $1,224 this week to ignite the short squeeze and if we can jump above $1,300 the Gold Bull will be back. Now we are entering the stage with banks when Bubble TV will be discussing "not a return on the capital, but the return of the capital." Samuel Bryan provides very interesting analysis of the Debt "crashing American economy", I can only add that it is not only U.S.
"Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central Banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital. We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now."
The Last Chance To Prevent The Crash: Stock Market's Worst January Ever.
"We have now the last chance to prevent the real Crash. If market slides below August 2015 Low the floodgates will be open and waterfall will bring us not only the worst January for markets on record so far, but the real Crash. I think that it will be averted by the coordinated action by all Central Banks now killing the US Dollar rally. It is an election year in the U.S. and nobody will be taking any chances. Realisation that not only FED rate hikes are not coming, but another QE is in order will drive Gold prices back into the Bull market. Read more."
"Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central Banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital. We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now."
Gold And FED: Tom McClellan Predicted Major Market Peak In August 2015, Bear Market Into 2016.
This original post was made in June 2015: Tom McClellan deserves a very good attention - majority of the commentators are just going with the flow, while his analysis is based on liquidity and forward looking indicators. He is a must to study. I am very impressed and following him closely now. Jim Rickards and Peter Schiff were talking about this coming outcome of the FED decision for many, many months as well. Finally the Black Swan created by FED is coming to all the markets. I do not expect Crash, as it will be impossible to recover after it with FED without any bullets left and 4 Trillion Dollars balance sheet. But when you look at FCX falling down today 17% below 5 dollars and Copper below $2/lb, you start to think who will blow up this time. Arch Coal - America's second biggest coal company has just announced the bankruptcy and Oil is sliding today towards $31 per barrel with both WTI and Brent. Expect to learn the words Shale Oil Credit Bust and Derivatives related to it by heart in the next few weeks now from the headlines. I guess, that FED was too late to reload the "Efficient Central Bankers Economy Gun" in the end and now we all will face the music. This time the real panic will start among Central banks even before the Retail: everybody became totally complacent these days - but "saved" World Financial System does not mean that everybody will have the Return of The Capital. We can expect coordinated actions now starting with China, Japan, Europe and FED dialling down any further expectations about the Rate Hikes. Gold must be finally coming to life now.
Energy Metals Royalty Company TNR Gold Corp. Announces Restructure of Loan.
TNR Gold holds:
1. Royalty in giant Los Azules copper project with McEwen Mining and 1% on Sale of this project;
3. 25.5% in International Lithium, which develops J/V Mariana Lithium project in Argentina being financed by giant from China - Ganfeng Lithium.
Please carefully read my legal disclaimer and you can find all latest financial information about TNR Gold and International Lithium on SEDAR. Please never make any investment decisions without consulting with your preferred qualified financial adviser. Read more.
SchiffGold:
Debt Is an Elephant in the Room and It’s Going to Rampage
FEBRUARY 8, 2016 BY SAMUEL BRYAN
Debt is crushing the American economy.
Over the last month or so, the mainstream seems to have realized that the economy isn’t on nearly as solid ground as government officials and central planners were telling them throughout 2015, and all of a sudden, gold is in vogue. But as we pointed out last week, the signs of economic distress have been there all along.
One underlying fundamental that seems to get swept under the carpet is the staggering level of debt – both public and private.
Last week, the US national debt crossed the $19 trillion threshold. Most of us can’t even grasp that number. The graphic above created by the Heritage Foundation puts it into vivid perspective, illustrating what this level of indebtedness and spending would mean to the average American household.
It’s easy to see just how much trouble a family is in when it’s $311,000 in debt and still putting $9,000 more a year on credit cards. Yet, when it comes to the federal government, everybody acts like it’s no big deal.
It really is.
Just consider the US budget ramifications pointed out by Yonathan Amselem in a column on the Mises Institute website:
Low interest rates stemming from a growing money supply are the only reason the US government has managed to service its gargantuan debt in recent years. The Congressional Budget Office itself has pointed out that even a slight rise in interest rates could potentially result in anywhere from $700 to $900 billion in annual tax payments just to service the interest on our debt. At this pace, paying the republic’s creditors will become our largest government program in no time. Future Americans might go to work and have 50% of their paychecks seized not to pay for government services, but simply to service debt forced on them by central planners.”
This is just one of many reasons the Federal Reserve cannot embark on a sustained program of interest rate hikes.
In his recent Gold Videocast, Peter pointed out how the Federal Reserve and government central planners have built a house of cards on a foundation of debt and at some point, it will all come crashing down.
The national debt just surpassed $19 trillion officially. It’s going to be $20 trillion by the time Barack Obama leaves office, maybe more. He’s doubled the national debt. The next president is going to have to double it again in order to keep this house of cards from collapsing. I think it’s impossible to finance that type of growth in debt. But that’s what this bubble economy needs because all of our GDP grows based on debt. It’s not real economic growth; it’s just consumption that’s borrowed. And you need to borrow more and more money to get less and less GDP growth, and we’ve run to the point where we can’t do it anymore. The world is not going to continue to give us a pass, and so gold prices, I think, are going to take off.”
Artificially low interest rates have enabled the government to borrow, spend, and increase the debt. Central bankers have distorted the economy with easy money, and as Amselem pointed out, it’s not just government that has run up a huge bill as a result:
Public debt is far from the only distortion artificially low rates have wrought. Mortgages, auto loans, credit cards, and student loans have ballooned total consumer debt to $12 trillion, and this number is only trending upward. The easy credit economy manufactured by central bankers has obliterated American savings and replaced them with debt. The average American consumer has less than $1,000 in his bank account. He lives praying for no car trouble or a broken arm.”
And then there is corporate debt:
Since 2008, corporate debt has doubled. Almost 100% of all corporate issued debt has been used to buy back stocks and prop up equity prices. This bears repeating. Almost none of America’s recently issued corporate debt has gone toward investing in plant and equipment, increasing the workforce, research and development, or expanding operations in any meaningful way.”
The extreme debt load in America today is one of those underlying fundamentals that simply can’t be ignored. Since years of Federal Reserve low interest rate policy helped build and sustain the US debt economy we have today, it’s now impossible for the Fed to take away the drug. The junkie would go into withdraw and things would quickly spiral out of control. Just consider the aftermath of the small December rate hike. This is why Peter can so confidently say the Fed won’t keep raising rates. It is more likely to drop them back to zero, or even into negative territory, and then launch into another round of quantitative easing.
Debt – personal, corporate, and national – is a huge elephant in the room. At some point, it is going to go on a rampage."
No comments:
Post a Comment