Category: Financial Markets 2014
The analysis published under this category are as follows.Friday, July 11, 2014
Gutting the U.S. Armed Forces, Committing Economic Suicide, France Imploding / Stock-Markets / Financial Markets 2014
This week was interesting to say the least and it is ending with a bang. We are covering a number of brief subjects this week. I hope you enjoy them.
- Gutting the armed forces
- Politically correct, but practically incorrect economic suicide.
- Farmland disaster DEAD ahead
- Repressed to Death
- NOT a SMIDGEN of Corruption!
- France is IMPLODING economically: Vive la France
- Bonfire of the Vanities!
- This will not have a HAPPY ending!
Thursday, July 10, 2014
Poverty Matters for Capitalists - Stock Market Impact / Stock-Markets / Financial Markets 2014
Having taken Thomas Piketty to the cleaners a few weeks back (see “Gave & Gave … and Hay”), Charles Gave now redresses the balance with regard to the issue of economic inequality in today’s Outside the Box. He makes a forceful case that “poverty matters for capitalists”:
Every US recession that I can recall was preceded by a fall in long rates, and I doubt the next will be much different. As such, do not expect the next US downturn to arise from the Federal Reserve pushing rates higher, an overvalued dollar or even mal-investments. Expect it to result from a decline in the income of the working poor. Early warning signs are likely to show up in the shopping aisles of stores such as Walmart, average driving miles, and the price of houses at the cheaper end of the market. I suspect the lesson that will eventually be learnt is that in a modern industrialized economy there are few worse things a central bank can do than deliberately attack the spending power of the poor.
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Monday, July 07, 2014
Thriving in a Crisis Economy - 2014 Fall Casey Summit / Stock-Markets / Financial Markets 2014
Even though I sometimes have trouble remembering what I ate for breakfast, I vividly remember watching John Wayne's movie The Alamo, even though I was only seven years old at the time.
That it made such a big impression on my young self was due to a combination of the heroics of the small band fighting against overwhelming odds, as well as a fascination that fate brought Davey Crockett and Jim Bowie - two of my favorite historical characters as a kid - together in the doomed fort.
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Thursday, July 03, 2014
Hidden Factors To Systemic Failure, Economic Policy As Death Sentence / Stock-Markets / Financial Markets 2014
The most amusing question asked of the Jackass by clients and other people is when the system is going to break down. My usual answer is 2008, which causes a strange reaction, since a past date. Then they are given a tactful tongue lashing that they have failed to notice, detect, or discern properly the failed system in front of their noses. Further quizzical looks and pleas for explanation bring a torrent of headline facts. Seeing events through a different lens of statistical reality with almost no gullible or naive tendencies, the intrepid analyst relates the tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse. (Forecasted in advance by the Hat Trick Letter). It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms. Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish. They hide grotesque insolvency. Their liquidation would not happen, instead zombies walked.
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Thursday, July 03, 2014
Threading the Needle of Silver Price Discovery / Stock-Markets / Financial Markets 2014
Price discovery in all commodities is an electronic paper affair. While the macro-economy and the geopolitical provide a distant framework, they do not wield significant direct influence. The "discovery issue" occurs across the board, but is nowhere more evident than in the precious metals futures markets and, most notably, silver. A look under the hood at the most recent rally confirms that we are nowhere close to the point of return to equilibrium price.Read full article... Read full article...
Thursday, July 03, 2014
Capital in the Twenty-First Century Flawed Theory That's Torching the Best-Seller List / Stock-Markets / Financial Markets 2014
Peter Krauth writes: I really do hate to say this, but the government threat to your assets is growing... again.
We've seen it happen in Cyprus, where bank accounts were "raided" to bail-in the country.
We've seen it in Argentina, Poland, Hungary, and other nations where private pensions were nationalized to help the countries' ballooning debts and deteriorating sovereign credit ratings.
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Tuesday, July 01, 2014
Lowest Interest Rates in 500 Years, Oil Shortages in 10 Years / Interest-Rates / Financial Markets 2014
We all know that interest rates are at an ultra low level, whether it’s the rate on our savings accounts, our mortgages (though those are quite a bit higher, quelle surprise), central bank rates or yields on government bonds. All this, plus a watershed of global QEs, have led to stock exchanges at highs that have nothing at all to do anymore with the performance of the real economies they’re supposed to represent – and historically did.
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Tuesday, July 01, 2014
U.S. Dollar, Gold and Stocks Most Important Market Analysis Update Ever! / Stock-Markets / Financial Markets 2014
A few notes first off...the US Dollar Index has broken below 80.0, but for this to mean anything, the US Dollar must close below 79.40 on a weekly basis. The critical levels of upper support and resistance are so tight right now, that the volatility we have seen has caused many players to go long when its wrong and go short when they should abort. The trend finally does "appear" as if the 79.40 level will break, but nothing is better than waiting for confirmation than speculation.
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Thursday, June 26, 2014
Smart Money, Dumb Money & Your Money - Bond Market End Game / Stock-Markets / Financial Markets 2014
Crime is far more common than logic. This is the refuge of bankers.
In capitalism’s end game, leveraged debt fatally destabilizes the supply and demand dynamic necessary for stable economic activity. Understanding this is critical to understanding why capitalism today is failing.
In the banker’s ponzi-scheme of credit and debt, debt-based money is created through central bank credit. Usually, the central banks’ constant expansion of the money supply results in rising prices, i.e. inflation. In the end game, however, this is no longer true.
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Wednesday, June 25, 2014
Wednesday Market Worries – Will U.S. GDP Be Revised Down Again? / Stock-Markets / Financial Markets 2014
Does this look healthy to you?
We did manage to pull out of a tailspin back in 2011 – the last time our GDP went negative but, funny story – in July of 2011, the S&P fell from 1,350 to 1,100 by August 9th and it gyrated between 1,100 and 1,200 until October when the Fed's "Operation Twist" (because "Operation Screw the Poor" got bad test scores) gave us a boost.
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Saturday, June 21, 2014
Islamic Caliphate is Born, World War III has BEGUN! / Stock-Markets / Financial Markets 2014
Insanity is coming at US in huge waves. This week really saw a lot of new tea leaves presented to those working through the puzzle of the MAN MADE disaster. We are indeed living in interesting times, and I believe they will be studied and written about for decades and centuries into the future. I also believe this time period offers the greatest opportunity's in history if played from an applied Austrian economic perspective, and a good handle on history. They are one and the same actually. So let's look at some of the vignettes we covered this week:
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Friday, June 20, 2014
These Lies Could Trigger Another Financial Market Collapse / Stock-Markets / Financial Markets 2014
Shah Gilani writes: The public has been brainwashed about deflation.
We've been hoodwinked by central banks, governments, and the manipulators who pull the reins of those Trojan horses into believing that deflation is a deadly disease. It's not.
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Friday, June 20, 2014
The Era Of No Respect / Stock-Markets / Financial Markets 2014
The late, great comedian Rodney Dangerfield once made the following joke. “Last week I told my psychiatrist, "I keep thinking about suicide." He told me from now on I have to pay in advance.” Rodney would tug on his necktie and repeat his catch phrase, “I tell ‘ya, I get no respect!”
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Thursday, June 19, 2014
The Coming Crash Of the Financial And Monetary System / Stock-Markets / Financial Markets 2014
In an excellent video presentation, Claudio Grass, Managing Director at Global Gold Switzerland, explains why a crash of the financial and monetary system seems inevitable. The presentation covers all actual issues like currency wars, rigged markets, central bankers’ interventions, statistics manipulation, monetary mismanagement and financial repression. Claudio Grass does a great job “connecting these dots” but in a factual way. In this article, we collect several quotes and graphs. The full video presentation is 22 minutes long. Readers are highly recommended to watch the full presentation and subscribe to receive three exclusive reports for free on http://welcome.globalgold.ch.
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Wednesday, June 18, 2014
Outlook on U.S. Dollar, Currencies & Markets: Look Out Below! / Stock-Markets / Financial Markets 2014
The FIFA World Cup and market predictions have in common that we are tempted to create a world of make-believe when it comes to predicting outcomes. While others ponder about the meaning of a round ball, we’ll focus on the implications of a make-believe world comprised of ever-higher asset prices. Our caution: look out below!
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Sunday, June 15, 2014
The Horrible Laugh of the Doomed / Stock-Markets / Financial Markets 2014
I can hear the family gathered outside, banging on the walls of the Mogambo Bunker Of Paranoid Hysteria (MBOPH), demanding that I unlock the door, come outside immediately, stop acting like a crazy person, and at least pick up the empty pizza boxes that I threw out into the yard, because the neighbors are complaining, and it looks so tacky, and blah blah blah.
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Friday, June 13, 2014
American Empire on FIRE! SOVEREIGN credit market action Simply UNBELIEVABLE / Stock-Markets / Financial Markets 2014
This week’s news certainly WASN’T BORING. Big events and small add up to unfolding CHAOS around the WORLD.
It is clear that US FOREIGN POLICY and unfolding military weakness is creating a vacuum that is quickly degenerating into what could be the beginnings of World War III. The biggest victim will most certainly be the US DOLLAR. Dennis Gartman repeatedly emphasizes the World’s Reserve currency also must be the dominant MILITARY power. HE IS CORRECT. They have gone hand in hand in EMPIRES throughout history. Now the administration in Washington is on RECORD saying we will no longer be the dominant military power. They have demonstrated this repeatedly over the last 6 years. Egypt, Syria, Libya, Iraq, Afghanistan, the Taliban prisoner swap, Ukraine, and the South China Sea are abject surrenders to belligerents in one form or another. Now that these patterns are firmly established, escalation by all can be EXPECTED. The administration is openly committed to downsizing the military and removing the ability to fight on two fronts around the world. No American allies can reliably expect the US to honor defense treaties. They are now written on DISAPPEARING INK! Some realize it and some are WAKING UP rapidly.
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Monday, June 09, 2014
Financial Immolation - May 2014 - Crematorium / Stock-Markets / Financial Markets 2014
"Groups of women were crushing each other..., a real mob, more brutal for covetousness....the furnace-like heat with which the shop was ablaze came above all from the selling, from the bustle at the counters... There was the continuous roar of the machine at work, of customers crowding into the departments, dazzled by the merchandise and then propelled towards the cash-desk. And it was all regulated and organized with the remorselessness of a machine: the vast horde of women were as if caught in the wheels of an inevitable force." ~ Émile Zola: The Ladies' Paradise (1883)
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Friday, June 06, 2014
Non-Farm Payrolls Friday – Who Needs to Work When the Market Makes 30%? / Stock-Markets / Financial Markets 2014
Is there any point to working?
For Americans, it's just the time we waste while waiting to consume. As more and more of our jobs are taken over by machines – why are we still hung up on working?
There is the small problem of distributing the wealth but, once our bosses let go of the idea of needing us to show up just to get paycheck – I think we can get our economy back on track.
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Friday, June 06, 2014
Hammering the ECONOMY, Unfolding Constitutional Crisis, European Banks Still in DEEP Trouble / Stock-Markets / Financial Markets 2014
It's been a wild and wooly week for students of the economy and politics. A lot of significant developments on a number of subjects took place: ALL OF THEM NEGATIVE for the private sector and public. I will be covering a number of subjects in this week's Weekly Wrap:
- Hammering the ECONOMY
- Constitutional crisis Unfolding
- European banks still in DEEP trouble and economies as well.
- Beware Suppressed Volatility
- ECB meeting: NO SURPRISES - A "Let them eat cake" moment for the Eurozone
Read full article... Read full article..."Government is not reason, it is not eloquence, it is force, like fire it is a dangerous servant, and a fearful master." - George Washington