Money manager Michael Pento predicts, "The U.S. is not an island. The U.S. is not going to have 4% GDP growth while the rest of the world implodes.
I look at the data, and data says this is the most dangerous market ever. This is the most precarious GDP on a global basis that we have ever had. Global central banks have never before printed $12 trillion.
We have never before had that happen, and the reason why they did it is to take sovereign debt into zero and negative territory so we can go on this inflation quest so asset prices don’t implode. That is all turned on its head.
They have reached their inflation and it’s starting to unwind, and this whole thing is going to collapse. I have put a check on the calendar for October."
How did Hillary Clinton get away with obvious crime with her unprotected server and the shady Uranium One deal? Shipp says, “The most bizarre thing is the people who protected her from clear felonious activity and violations of the Espionage Act.
James Clapper, Director of National Intelligence, was protecting her and leaking things to the media and lying. You had John Brennan, Director of the CIA, protecting her by starting a false investigation (on Trump) and stirring things up with this (false/unverified) dossier. You had James Comey, Director of the FBI, protecting her.
Then, you’ve got Peter Strzok protecting her, and now it appears the United Kingdom GCHQ was using NSA information to target Donald Trump and protect Hillary Clinton.
You have to ask yourself what kind of power or connections does this woman have to get all of these members of the Deep State, Shadow Government to risk their own criminal penalties to protect her and try to get her elected? That is the Shadow Government. That is the Deep State. That is what is so chilling about this whole thing.
This is deep. This is dark. This is as dark as it gets, and this is the biggest espionage case involving government officials in the history of this country.” Shipp also points out that, this time, it will not be business as usual for the “Deep State and Shadow Government.”
They are going to be brought to justice because Shipp says, “indictments are coming because of Donald Trump coming into the White House from the outside. Trump cannot be bribed.”
When rates start to go up, look out below. Mannarino explains, “You are going to have central banks do whatever they can to attempt to stop the bleeding. That means they are going to be the buyer of last resort.
They will get in there and try to buy everything, and that will melt the currency. As rates spike, what will that do? You are going to see a lot of pressure on the stock market. The only reason why the stock market is where it is today is rates are low. You will get an opposite effect.
So, you have massive sell-off potential here, and I mean massive in the bond market followed by a massive sell-off in the stock market.” Mannarino expects war to come into play. Trader/analyst Gregory Mannarino predicts, “This is going to lead to another world war.
I have said this many times, and that is this has the potential to be Biblical. It will be a worldwide event or a correction to fair value is really what it is. We might be seeing the opening salvos already. Governments around the world are building up their militaries just like the U.S.
We are unfortunately going to clear this out and lose a large percent of the world population through this financial correction and war. We will rebuild, but the world will not be what we are seeing now.”
In our modern digital age, news comes at you fast. Never before has the spread of information traveled so quickly in history, never before has social media been so influential and never before have problems been exacerbated so rapidly. The West is in turmoil and chaos continues to seep into the very fibers of the institutions that the global elites have built up over the last century, institutions that are now finding themselves under assault. Anyone who is paying attention, or reading my series of articles, knows that there is a massive shift occurring in the zeitgeist of the West, a shift that only occurs once in a lifetime, or possibly not at all. We truly do live in interesting times, but they are dangerous too. The risk of structural collapse in many of our political systems is at all time highs, with citizens all across the West demanding change from their leaders. Rapidly, people are descending into "tribes", as they become consumed with self-reassuring, confirmation bias assuaging articles, written by their fellow "tribe" members. Whether this comes from the "radical left", or the "alt right", it doesn't matter. What does is the damage that it is doing to our systems, and the risk that they now pose to the dwindling minority of sane centralist. We are seeing this change unfold in front of our very eyes, and scarcely does a day go by where we don't read about another "crisis", or situation that threatens the very fabric of our society. Within the past week alone, depending on which "tribe" you belogn to, there have been numerous victories, or catastrophes develop in rapid succession. President Trump has scored another major victory in the name of conservatives within the United States, as last night he announced the nomination of his second Supreme Court pick, Judge Brett Kavanaugh, after Justice Anthony Kennedy announced his retirement just a few week's ago. Displaying true tribalism, far left protest groups planned protests to Trumps nomination well in advance, despite not knowing who the pick would be, or what their past track record was. Essentially causing them to create a series of talking points that they could pick from and fill in the blanks. Proof of their willingness to protest whoever Trump picked was displayed via photos taken at last nights event, where multiple signs, displaying various names were printed;
Obviously, this is a completely irrational way of pushing your ideology and severely discredits your movement. Regardless of this, the protests continued onward anyway, with the MSM closely covering the event and of course, refuses to point out key factual points, something that they have become increasingly efficient at as they descend into tabloid status.
As much as this news is making waves on this side of the "pond", on the other side of the Atlantic Ocean, things are even more dire.
Theresa May has found herself on the end of a full blown mutiny within her party, as she continues to lose the support of her peers and the public at large.
This has been a rapid descent, as many within the British public have begun to openly criticize her for her role within the BREXIT negotiations.
She has taken a very soft approach in regards to negotiations, an approach that has left the UK at the mercy of the European Union, as she continues to relent to their ever increasing demands.
This however is not going to continue on, a massive shift is occurring, as numerous key members of her party have signed their resignation letters, including Boris Johnson, whom many would like to see as the next Prime Minister.
I predict that ultimately, this is going to result in Theresa May stepping down herself, even as she continues to plead for unity within her party. These two stories alone would be massive news, but the fact that they are occurring within a week of each other just goes to show how quickly the times are accelerating and just how unstable the current systems within the West are. Madness is seemingly all around us, much of which is made that much worse by the MSM, who blows every small detail out of proportion, and recklessly, selectively reports on only the facts that help push their narratives. Truly, this is one of the most unstable time periods within modern history, and one that could see a cascading chain of events unfold at any moments notice. Be prepared, be alert, be a part of the solution, spread the truth. - Source, As First Seen on the Sprott Money Blog
Daniel Lacalle joins Jeff Deist to discuss how and why central banks are trapped, stuck with ultra-low interest rates and expansionary policies that produce astonishingly little real growth.
This is a hard-hitting and sober look at what rising interest rates will mean, why academics and bankers are so clueless about the monetary side of financial markets, and why Austrians need to offer real-world solutions instead of ideology.
Canada has catalyzed the conversion of the Midas Letter from a mining centric to a broader multimedia digital platform that are now focused on video production.
Recently they have focused on the hottest markets. Lately, that has been the cannabis industry. Canada has stolen the spotlight for this market, and they are working on a documentary about it.
Midas Letter has launched a series of indexes for cannabis companies which have done well from 6.4x to 15x over the past couple of years. He thinks the bubble in cannabis will burst as the cost of production falls later this year. Many “non-licensed” companies will deliver cannabis to your door very quickly at a fraction of the cost of the licensed establishments.
Three billion has been invested into the cannabis space so far this year in Canada, and some forty plus billion has entered it over the last few years. By mid-2019 a lot of money will flow into the resource sector.
Gold currently is struggling and that may in part because of the younger generation has been looking at crypto. There is a broad perception that the days of fiat and commodity backed currencies are coming to an end. He doesn’t agree with that concept and is buying mining stocks.
America’s populace is politically divided in a way that has not been seen in decades. The growing rift is rapidly changing the landscape in Washington D.C. and has major implications for the nation. Amazingly, as voters from different parties espouse views that are worlds apart, they share a strikingly similar message.
This article considers the juxtaposition of colliding worldviews and the unified message that voters across the political spectrum are sending. While many investors are aware of the political change afoot, it seems that very few have considered how said changes might affect the economy and financial markets. In this article, we share some of our thoughts and encourage you to give the topic more consideration going forward.
Given the importance of the subject, this article will likely be the first of several discussing the intersection of politics and markets. The Changing Faces in Congress
Speaker of the House Paul Ryan and Congressmen Bob Corker and Jeff Flake are a few of the well-established Republicans not seeking reelection. While each has their reasons, it appears the prospect of losing re-election played a significant role in their decision making. Is this a case of “playing not to lose” as opposed to “playing to win”? Political capital can be delicately converted to monetary capital only if a politician, in or out of office, plays his or her cards wisely.
This is not just a story about Republican discontent. In New York’s Democratic 14th Congressional District primary, Alexandria Ocasio-Cortez, a totally unknown candidate months ago, recently upset incumbent Joseph Crowley, the fourth-ranking Democrat in Congress and possible successor to Nancy Pelosi as the Democratic House leader. Crowley has represented New York since 1999, most recently as a representative of the Bronx and Queens.
Ocasio-Cortez is a 28-year old Latino woman who was tending bar only a year ago. She ran on campaign promises that were decidedly left of the mainstream Democratic agenda represented by Crowley. Her political stance was not surprising given her support for Bernie Sanders during the last Presidential primary and her membership in the Democratic Socialists of America.
While there are many messages 14th District voters are sending us; we believe there are two that are representative of voters of both parties throughout the country.
Voters appear to prefer political views that are less centrist and offer a change from the status quo of the existing parties.
Voters are looking to buck established party leaders in favor of someone different.
The Washington Post, in an article about Ocasio-Cortez’s victory, summed up these messages well – “Many of the key Democratic House primaries this year have been competitions over biography, with a premium given to those who break new ground or remove old barriers.” Economic and Market Implications
Assuming this trend continues, the implications for the economy and the financial markets will become increasingly important to follow. While the topic for another article, simply consider the massive social changes that occurred in the late 1960’s and early 1970’s. Those changes had profound and lasting effects on culture and society as well as the economy, monetary policy, fiscal policy and the financial markets.
The following provides a summary of factors worth considering as this new era of politics takes hold:
Deficit – Despite a Republican-controlled Congress and President, the size of the fiscal deficit is surging. Current forecasts by the Congressional Budget Office (CBO) estimate that Treasury debt will increase by over $1 trillion a year for the next four years. While it seems that the Democrats and Republicans cannot agree on much, they currently seem to agree on increased government spending. Given a President that is not averse to debt financing and deficit spending and a slew of politicians concerned about future elections, collectively they may opt for more spending to please their constituents. Given the importance of retaining (or not losing) power, the tendency towards higher fiscal deficits will continue regardless of which party controls the House and Senate. Discipline of any form appears outdated in the halls of Congress and certainly not a popular political platform.
The UK government crisis that was unleashed on PM Theresa May's cabinet last night when Brexit minister David Davis resigned, has just escalated following the resignation of foreign minister Boris Johnson. While BoJo was speculated to be unhappy with May's deal, many suggested that he was willing to fall in line; however events over the past 24 hours changed his mind.
Theresa May promptly accepted Johnson's resignation with the following brief statement:
"This afternoon, the Prime Minister accepted the resignation of Boris Johnson as Foreign Secretary. His replacement will be announced shortly. The Prime Minister thanks Boris for his work'"
Johnson's resignation increases the chances that May will now face a leadership challenge over her Brexit policy.
As Bloomberg adds, "resignations traditionally unleash leadership challenges in the U.K. Davis’s prompted pro-Brexit lawmakers to demand May rip up her proposals, but they didn’t call for her to go. That’s partly because they can’t be sure they have the numbers needed to be sure of defeating her. But Johnson’s exit could embolden others."
As a reminder, late on Friday, May pushed her Cabinet late on Friday into a Brexit plan that many had misgivings about.
Initially, it looked like she had managed to get away with pushing for the Brexit that buinesses wanted - as soft as possible with close ties to the bloc. Then everything changes when Brexit minister David Davis resigned and took his deputy with him. Now Boris has joined them.
As Bloomberg 's Tim Ross notes, "Johnson has been worried for months that May is taking too long to negotiate Brexit. She told him to trust her, but the direction of her policy -- towards an ever softer split -- meant that he always wanted proof that he could."
It looks like the plan she unveiled last week at Chequers eventually proved too much. And perhaps he was encouraged to jump by the fact that his colleague David Davis did so first.
More importantly, now that the most prominent pro-Brexit names have fled, May's support appears to be crumbling among the conservatives.
At least one person was delighted by the latest news: the original Brexiteer, Nigel Farage, the former U.K. Independence Party Leader, who congratulated Johnson on quitting, adding that now is the time to topple Theresa May:
As for who may replace Theresa May, according to the latest YouGov results, Jacob Rees Mogg is the most likely replacement, with Sajid Javid and Ruth Davidson came joint second...
Macroeconomic analyst Rob Kirby says what this all boils down to is: pro-dollar forces vs. anti-dollar forces. Kirby contends, “Three, four and five years ago countries taking anti-dollar actions would have only included only China, Russia and a few other smaller Asian players.
Now we are starting to see friction that is not just Asian players, now it’s Germany. Who’s next? Is it going to be the whole European Union Going to drift into the anti-dollar camp as well? America is becoming isolated.”
Brother turning on brother, sister on sister. A second American civil war? How could this even be a possibility in our modern, civilized times? The answer is all around you. Tensions run high and hatred seethes from the mouths of pundits on the MSM, both from the radical left and the far right. Neither are willing to give an inch, in fear of losing a mile. Neither are willing to back down. This tension has resulted in a boiling pot of politics within America, that at any moment could spill over and upturn the entire system. Don't think this is possible? Well, don't count it out. Roughly 1/3rd of Americans, or 31%, believe that a second American Civil War is not only possible, but likely to occur within the next five years! This news comes off the back of a recent poll conducted by the Ramussen Report, a highly respected source and one of the few that closely predicted the Presidential victory of Donald Trump. Most of those conducted within this survey believe that the violence is going to be sparked by opposition to President Trumps policies, of which have been either deemed highly controversial, or something to be rejoiced, depending on which side of the political spectrum you fall under. Yet, there is still some hope for those who reside in the center, with 59% of respondents stating that they believe a Civil War to be an unlikely event. Sadly for those people, as we seen in the first American Civil War, it only takes a small percentage of the population to get the ball rolling. Stoking these fears was the recent clash in Portland between a right wing prayer group and ANTIFA, of which made national headlines due to video footage that showed just how bloody and ruthless these political gatherings can turn. Unfortunately, this isn't the first of these events, as over the past year, there has been many similar clashes and battles. People are choosing sides and donning their uniforms. What is most shocking, is how organized some of these groups are becoming, coordinating through the use of social media and travelling vast distances to partake in the battle. This is not good and it should not be embraced. A second American Civil War would be gruesome, bloody and vicious. The first American Civil War claimed roughly 10% of the Northern male population and approximately 30% of the Southern male population. With modern weapons, and no even "lines" in the sand to be drawn, the second, if it began would result in a stunning death toll that could collapse the American system as we know it. This would result in both a financial and humanitarian crises. I blame the MSM, and the proliferation of social media echo chambers in large part for this isolation of beliefs and proliferation of fearful propaganda. They have become nothing more than click bait propaganda outlets, caring little for the ramifications of their actions. Fortunately, I believe that sanity will be restored and people will come to their senses. Sadly, I also believe we still have some turmoil, hardship and suffering yet to come. Until then, keep your head on your shoulders and you thoughts your own. Question everything, and as always, do your own research. The truth is out there.
President Trump is warning US allies to cease purchasing Iranian oil by November at the latest. At the same time he's demanding OPEC (of which Iran is a member) start pumping harder to keep gas prices in the US stable. Make sense? It's all about "regime change."
NSA spying, TSA groping, police shooting first and asking questions later. As the grip of the police state gets ever tighter, how can we resist? Is there any hope of rolling it back? Rutherford Institute founder John Whitehead joins today's Liberty Report.
Jeff Deist, president of the Austrian economics focused Mises Institute, speaks about the guns and butter U.S. diplomacy policy and how to guard against the potential fallout from it.
