Gold expert Andrew Maguire says, “We are very close to a price reset (in gold and silver). What is a price reset? It is no more than settling close to a trillion dollars of derivatives that are underwater and unable to be delivered.
It is going to be a simple paper market reset. I suggest it will likely happen on a Friday and there will be a known default and a price adjustment for Monday morning.
You will be into a bid only market. There would not be any offers to sell gold.
I am not going to guess on a price. I know of two investor groups that are buying physical gold because they know there is going to be a physical price reset.”
In closing, Maguire says, “The jig’s up for the American dollar. Obviously, it’s not going to be overnight, but it is happening. Gold has to appreciate in this environment.
We all know that the paper markets (for gold) have leverage of 500 to 1. We actually think it is much closer to 1,000 to 1 when you account for all the derivatives.”
The BREXIT is not going well, the banks are preparing for a no-deal exit. It is being reported that 1 in 5 retailers are in trouble, more than 12,000 stores are expected to close this year. Congress slipped an amendment into a bill to bail out pension plans.
The pension funds are underfunded and the insurance that backs them does not have enough currency to protect them. The spending bill has been passed. Trump is making this move to collapse the central bank system.
The market is a ruthless regulator. Big corporations prefer government regulation because they to protect big corporations from the market, consumer choice, and upstart competitors.
As the market ravages Facebook for its misdeeds, CEO Mark Zuckerberg thinks maybe "government regulations" would be a good idea. Of course he does!
Q says the deep state criminals are in a panic, so "expect more." The storm is coming. Will Lehr from Perpetual Assets joins me to discuss the economy, precious metals and the sea change we are seeing across the globe because the witch isn't in the Oval office.
The market stands on a sinkhole, just waiting for the next feather to drop that will bring down the system and send us into another economic crisis that will make the 2008 crash look like an opening act. For years, I and many others within the precious metals space have written about a hidden war that has been unfolding behind the scenes, to those with wide open eyes, you can see it, you can feel it. The currency and trade wars that Jim Rickards has written extensively about in many of his books is what I am speaking about, and now, things have just ratcheted up to a whole new level. Over the course of the past week, the jaw boning from the US government, most notably President Trump, has turned into action and they have placed a number of trade tariffs on China. This is part of a campaign promise that President Trump made before he was elected and it appears that he intends on attempting to keep it, no matter how much it might "rock the boat". These steps caught many investors off guard, including seasoned market veterans, as they have been so use to the government making bold statements, but never following through with any real action. Not this time and the stock market is reflecting this new reality. Chinese markets were sent for a roller coaster of a ride yesterday, dropping by 3-5% throughout the day, with key stocks dropping over 10% alone. A sea of red could be seen across the charts as the once cold trade war turned hot. Today, it is the US markets turn, as China fired back overnight, sending Western markets plummeting in turn. These actions sent the plunge protection team into full swing, resulting in this mornings pre-open bounce. Unfortunately, I don't see them being able to hold back the flood gates for too long, as this trade war is only going to accelerate from this point on, as neither side looks willing to back down. The reality is, this is going to get incredibly messy and is going to lead to intense volatility within the markets. The one thing that markets hate more than anything else is uncertainty and we are about to get it in spades. Fortunately, for any of you well established in your precious metals position, then you are sitting on a healthy insurance policy, ie gold and silver, as they unlike the markets, thrive in times of uncertainty. Over the coming weeks, we will begin to get a clearer picture as to who truly holds the upper hand, and who is willing to take these threats to the next level. Both parties have extreme leverage on their side. The United States, despite what many will tell you, has incredible power through its purchasing power, while China on the other hand holds enough US dollars within its reserve to crash the dollar overnight if it so chooses. Regardless of who wins in the end, this is going to get ugly, messy and vicious. The trade wars that we have warned about for years have spilled over into the limelight and neither side can afford to lose, which means there will be no winner. Buckle up. - As Originally Seen on the Sprott Money Blog
Central bank credit that supports markets — is not just creation of the Fed, but by central banks and institutions around the world colluding together. Global markets are too deeply connected these days to consider the Fed in isolation.
Since last month’s correction, the world has been watching the Fed because its policies have global implications. And worldwide sell-offs sent a clear sign to Fed Chair Powell to relax with the rate hikes.
When fears arise that central bank QE will recede on one side of the world, we see more volatility and rumors of hawkishness. To counter those fears, there will be a move toward dovish policy on the other side of the world.
Central banks operate in collusion. When the Fed signals it is raising rates, or markets over-react negatively to the threat, another central bank steps in. By colluding, other central banks offer even more dark money-QE to keep the party going.
The net result is a propensity toward the status quo in global monetary policy: a bullish, asset bubble-inflating bias in the stock markets and caution in the bond markets.
Here’s what’s going on with some of the most powerful central bankers right now, starting with Japan…
While U.S. markets were correcting earlier this month, Japan’s financial benchmark, the Nikkei 225 index fell more than 1,200 points. At the same time, the rumors of Japan’s central bank curbing its dark money-QE programs are just that.
While investors have speculated that the BoJ could be moving towards an exit from dark money policy (despite the BOJ denying this), we know that central banks are too scared of the outcomes.
In an economic pinch, the Bank of Japan (BoJ), will keep dark money flowing.
Confirming my premise, when Japanese Government Bond prices were dipping too fast, the BoJ announced “unlimited” buying of long-term Japanese government bonds. This is simply the continuation of the policy the BoJ already has in place.
It was also, as CNBC reported, “the first time in more than six months that the BOJ has conducted special operations to buy bonds to achieve the yields it wants to see…”
That’s a clear sign of more manipulation of the bond market. And now we have confirmation that Japan likely has more dark money coming…
For the past year, there have been media rumblings that Japanese Prime Minister Shinzō Abe would relieve current Bank of Japan (BoJ) head, Haruhiko Kuroda. The dark money maven was set to end his term on April 8.
Seeing through the media craze, I have repeatedly detailed that it would not be the case. Abe and Kuroda go together like peanut butter and jelly. Abe specifically chose Kuroda to implement a massive dark money strategy in what has been referred to as a monetary “bazooka.”
A piece in Japan Today confirms this view. It concludes that 73-year-old Kuroda will stick around for a second five-year term, through 2023. So as the article notes, “He would be the first BoJ governor to serve two terms in half a century.”
Kuroda has implemented the most aggressive dark money manufacturing on the planet since taking the helm of the BOJ in 2013. Prime Minister Abe has become the longest-standing Japanese prime minister in years with the success of the snap elections he called for last fall.
Logically, why would he seek to end a partnership that is lifting the Japanese markets and making its economy appear rosy? (Though as in the U.S., wage growth and consumption remain tepid.)
With core inflation rising just 0.5% last year, well below Kuroda’s 2% target, you should expect that he’ll be pumping even more dark money into Japanese markets. For investors that means more opportunities in Japanese stocks. Currently, I’m focused on sectors related to the 2020 Olympics and the infrastructure projects that come with it.
Japan offers us a clear roadmap. Financial markets in Japan are clearly addicted to dark money.
Meanwhile, over in Europe, on Feb. 5, European Central Bank (ECB) President Mario Draghi told a European parliamentary hearing in Strasbourg, France, that the ECB can’t yet “declare victory” in its fight to resurrect inflation.
To calm financial markets, he noted, “Monetary policy will evolve in a fully data-dependent and time-consistent manner.” That means more central bank intervention to bolster markets when they buckle.
Draghi espoused some concerns for the strong euro. Draghi’s euro concerns translate into keeping interest rates lower for longer as a way to cool off euro strength. That means more dark money.
In the U.K., the jobless rate rose for the first time since 2016 and wage growth isn’t hitting the Bank of England’s 3% target. Here are the implications: The Bank of England, despite having hinted at tightening, can keep rates where they are given that elements of economic weakness still prevail. More dark money could be coming if economic conditions warrant it.
Of course, one of the most powerful dark money leaders is the head of the International Monetary Fund (IMF), Christine Lagarde.
That’s because the French leader manages the organization that directs an internationally accepted currency basket and coordinates global monetary policy. Lagarde provided a highly optimistic message at the recent World Economic Forum amongst the elites in Davos. Now she is attempting to step in again to sooth markets.
As one report reveals, while speaking at another elite gathering on global business in Dubai, Lagarde said, “I’m reasonably optimistic because of the landscape we have at the moment.” She also warned that, “we cannot sit back and wait for growth to continue as normal.”
When Lagarde speaks, we should listen. While it is true that global markets sank after the optimism at Davos, the elites have quickly pivoted. Their optimism and associated perception of inflation served to add to market volatility and contributed to the correction. So, they’ve now dialed it back.
“I’m ringing not the alarm signal, but the strong encouragement and warning signal,” Lagarde told an ultra-wealthy Dubai audience.
What central bankers don’t want you to know is that after a decade of cheap money policy to fix the worlds’ economies — they’ve only inflated asset bubbles. That’s why Lagarde repeated last month’s IMF forecast, singing the chorus that the global economy would hit 3.9% growth in 2018 and again in 2019.
Don’t expect this to happen.
But Lagarde’s dark money leadership wasn’t completely oblivious to a developing crisis. Of course, she tried to cast away blame from central bank collusion to other scapegoats. She noted, “We need to anticipate where the next crisis will be. Will it be shadow banking? Will it be cryptocurrencies?”
What this statement should signal to you is that central bankers are hitting their limits. They don’t want you to know how ineffective dark money policies have been for real economic growth.
The concept of central bank collusion is not one that is built upon conspiracy theories. To the contrary, the alliances make perfect sense and operate publicly.
If the Fed rate hike today teaches us anything, its that Jerome Powell will eventually embrace the same unlimited easy money policy on any sign of market weakness, while the global web of central banks remain as omnipresent as ever.
What’s driving the modern movement toward protectionist tariffs and trade wars? Where will it all lead, and what lessons can we draw from history? Geopolitics consultant Peter Zeihan and historian Marc Palen discuss. Plus, in the long/short segment, Grant and Alex trade airline seats, trend followers and Wu Tang Clan fans.
65% of American save little or nothing, many Americana's are struggling but to look at them you would never know, credit is what keeps most American' afloat.The housing market declines by 7%, the bubble is popping.Moody's warns that the retail apocalypse is not over yet.
China and many other countries are dumping treasuries, they see the writing on the wall. Trump is dismantling the deep state economic structure to prepare the country for the transition.
For years a trend has been developing and growing, a trend that much to the dismay of the global financial elites, has taken hold and is only going to accelerate from this point on. The trend I speak of is none other than the global repatriation of gold reserves from Western powers such as the United States and the United Kingdom, both of which since the ending of World War 2 have been the main depositories of gold reserves for countries around the world. This was driven out of necessity at the time, as these two locations were considered the safest places in the world to keep your hard money assets, after many countries found their reserves ransacked and pillaged as their countryside was ravaged by the hardships of war. Fast forward to today, and people are beginning to scratch their heads, wondering why they are keeping their hard money in far off lands, protected by countries that they are becoming more and more disconnected with and who are proving themselves to be increasingly irresponsible in their daily financial lives, running up massive deficits and experiencing exploding debt levels. Just this week, Hungary has joined the growing list of countries who have demanded their physical gold reserves returned to them, perhaps sensing the growing global tide of unrest that is beginning to set in around the world. Deciding to bring back 100,000 ounces, or 3 tons of the yellow metal, they join the ranks of other countries who have recently made this decision. Countries such as Austria, Germany and the Netherlands. For years I have written about each of these repatriations and for years I have stated that more and more countries would make the wise decision to try and get back as much of their gold as possible, before they were left empty handed. Austria demanded 15 tons of gold and indicated they plan on bringing home much more. Germany shocked the world by announcing a long term plan to bring back the majority of its foreign held gold deposits from by the United States and France, while the Netherlands repatriated 120 tons as well. Any country that is smart and has gold held in foreign locations will wise up to this trend sooner or later, demanding that they have their gold returned to them as well, to help protect their people in the coming financial turmoils that are sure to arise in the future. As we know, gold reserves from the United States and London have been rehypothecated over and over again, meaning that if their is a run on the price of gold, the price will exploded higher as central banks are forced to go to the open market to recoup their physical gold reserves. In the end, countries who continue to wear their blinders, choosing to avoid the growing problems arising around us are going to be hung out to dry, their gold reserves possibly lost for all time. The early bird gets the worm, or in this case, the gold. - As Originally Seen on the Sprott Money Blog
We are now seeing stores that have existed for 70 years completely disappear while thousands of people will be out of work. Congress is ready to roll back Dodd-Frank.
Trump wants to replace NAFTA with Bi-lateral trade deals. Germany and the central banking community is very worried about what Trump is doing, he is pushing the global economy over the edge. It is being reported that if Trump brings the economy down he should be impeached.
We can see the battle is on, who will control the narrative, the central bankers have held everything in place with their laws that did not benefit the people, now its being taken away, be prepared.
Hecla Mining CEO, Phil Baker, is confident that silver will “absolutely” soar past the $20 resistance level, “whether it’s this year, or in the future.”
“When you think about the gold-silver ratio, silver should outperform gold,” Baker told Kitco News on the sidelines of the BMO Global Metals & Mining Conference.
The gold-silver ratio currently stands at 80, much higher than the historical average of 60 of recent years.
Are the crimes and treason of the Clinton Foundation the anvil that is about to drop? Former CIA Officer and whistleblower Kevin Shipp says, “It’s not just an anvil, I think it is a mountain and the nexus of everything. This “Clinton Global Initiative” (CGI) is worldwide, and it’s been out there for a couple of decades. It has now intertwined former Directors of the CIA and FBI. George Soros is a part of it. It’s connected to all kinds of global financial institutions. It is at least $100 billion.
All these people protecting and defending Hillary Clinton and knowing about her criminal syndicate, this goes into the so-called “Deep State” of our government, and it is connected, involved and intertwined in the global criminal crime syndicate called the Clinton Foundation.
This is probably going to be the biggest scandal in U.S. history--once it’s busted. I think they are quietly working on it now, and I think they have been for the last year. It is so huge the arrests and indictments could cause a Constitutional crisis with some people being removed. Maybe that’s why they are moving slowly. It all comes back down to the Clinton Foundation and the criminal syndicate.”
John Kerry is now being investigated. John McCain is set to resign. The FBI has been using Geek Squad to spy on peoples computers. Venezuela is about to have an election and the US does not want this to happen. Q drops additional intel, IBOR is moving forward, Session begins the investigation with outside help. The news so silent right now, something big is about to happen, be prepared.
In this episode of the Keiser Report, Max and Stacy discuss the tax cut struggle for Democrats as voter approval for the cuts threatens their chances in the 2018 midterm elections. In the second half, Max interviews Wolf Richter of Wolfstreet.com about markets in denial about an increasingly hawkish Fed.
Financial expert and investment advisor Catherine Austin has a brand new report out on how America’s pensions are being drained by the Federal Government and Deep State.
Fitts, who was an Assistant Secretary of Housing in the Bush (41) Administration, says, “The reason why we did the pension fund study is because if we are going to stop the corruption, you have to stop our money being used to finance the corruption. So, you and I have to make sure our money is not financing the thing that’s killing us, and that’s what’s going on.
The X22 Report is "one man's opinion". Anything that is said on the report is either opinion, criticism, information or commentary, If making any type of investment or legal decision it would be wise to contact or consult a professional before making that decision.
"People who spend time writing carefully about themselves become happier, less anxious and depressed and physically healthier. They become more productive, persistent and engaged in life. This is because thinking about where you came from, who you are and where you are going helps you chart a simpler and more rewarding path through life."
The global, anti-establishment trend, of which I have written about in numerous articles over the past few years, and of which I have stated would continue onward, shaping our politics for years to come, is not only alive, it is firing on all cylinders. The election of Donald Trump, as I stated before and after he was elected, accurately predicting that he would handily win the Electoral College, was not the first sign of this growing trend, nor was the successful BREXIT campaign. Even though these two events were the most stunning events to rock the political landscape in recent history and thus shocked many, they came as no surprise to those closely following the pulse of the geopolitical landscape, a pulse that suggests monumental change is still yet to come and the times are going to become increasingly more and more unstable moving forward. Once again, with the recent German, Austrian and now Italian elections, we can see that the trend has solidly entrenched itself and anyone who still has their blinders on needs to wake up and smell the coffee. Whether you like it or not, this global change is occurring and it is becoming ever more obvious with each passing election in the Western world. The center is falling away and rising powers are filling the void on both the right and the left, of which many are calling "extreme", or "radical". The anti-EU, "Five Star Movement" is now the largest party in Italy, wrestling control from the leftist party that was in power before them. Shockingly, the latter came in third place, with another anti-establishment party taking the second share of the vote, proving just how far things have deteriorated in the minds of the Italian people. Still, forces will be working against the Five Star Movement, as this election, as are all of its type, was highly controversial and they were unable to meet the 40% share of the vote needed to make a majority, meaning that they will need to try and work with one of the other parties to form a coalition. A not so simple task given the many differences of these parties. Whatever happens next is anyone's guess, however, we are once again seeing that the anti-establishment trend is here to stay, and the global elite are rapidly losing power over many of the systems they have helped create. People are demanding change and are sick and tired of the results they are seeing. They are throwing their hands up in the air with despair and are taking any opportunity they can to rock the boat and hopefully in their eyes, reset the system in a way that benefits them, the citizens of their nation. Sadly, as history has shown time and time again. These things have a way of working themselves out in the long run, however in the short term, much turmoil, pain and unrest are still yet to come. Things are going to get much worse, before they get better. Prepare accordingly. - As First Seen on the Sprott Money Blog
Score another diplomatic victory for Trump, whose hard line negotiating tactic appears to have generated a dramatic - and favorable for market - outcome. Moments ago futures spiked, 10Y yields jumped and the USDJPY bounced about 106 on the flashing "bullish" news headline that North Korea is "ready to denuclearize if regime safety is assured."
NKOREA OPEN TO DENUCLEARIZE IF REGIME SAFETY GUARANTEED: SKOREA
The headlines come from South Korean National Security Office special envoy Chung Eui-yong, who is speaking to reporters in Seoul after returning from Pyongyang. Remember he and another envoy, National Intelligence Service chief Suh Hoon met North Korean leader Kim Jong Un in Pyongyang on Monday. Chung confirms that North Korea is indeed ready to stop the jawboning and negotiate:
Kim Jong Un open to frank talks with U.S. for denuclearization: Chung
North Korea to suspend provocations during talks: Chung
Promises not to use any weapons against South Korea: Chung
Next step: a summit in April between the two neighbors where details will be ironed out: "North Korea, South Korea agree to hold summit in April", Chung says.
The easing of tensions between the two Koreas and this clearly positive geopolitical development has triggered a broad based risk-on move. Fixed income is selling off sharply here, with Bunds flying. As the spot KRW market is closed, the NDF space is in focus. The 1m NDF has traded from 1076.0 to 1070.8 at time of print. USDJPY is spiking higher at 106.10 at print. This move may have legs especially as early NY begins to come in
The question now is whether this unexpected diplomatic victory for Trump will further empower him to demand similar concessions on the trade side, and launch the "trade wars", even as the market is now fully convinced that the US president will backtrack.
Professional trader Gregory Mannarino says the new Fed Head, Jerome Powell, caused the market to sell off last week, not Trump tariff talk. Powell blurted out in Congressional testimony that the “U.S. is not on a sustainable fiscal path.” Mannarino explains the truth bomb Chairman Powell dropped, “I think this guy was nervous. I think he’s getting shook up here.
I think the weight of his position is weighing on him a little too much, and that is what sparked the sell-off. It wasn’t the tariffs. This was Powell, and the markets are saying that this guy really might not have our backs as much as Yellen did.”
So, is the Federal Reserve losing control of the markets? Mannarino contends, “It’s worse than that. They have already lost control. If they were in control, would they still be buying bonds like they are? Would they still be trying to ‘get it right’? They cannot unwind this in a normal way. They have created a system of bubbles, and they are well aware of this.
These things tend to collapse very violently when they do. If the Federal Reserve or any of these central banks were in control, do you think we would be in the situation we are in right now? Absolutely not. All they have done is liquefy the world with debt and buy everything they can to keep this propped up. This is not control.
This is some kind of a Frankenstein they have created by trying to prop everything up. This is a corpse here that is on life support, and that is all it is. There is going to be a terrible moment of reckoning. Inflation, forget about it. Of course, there is going to be massive inflation. They can’t stop it.
They are in a lot of trouble here. Of course, they are going to lose control. Let’s say we start getting some real inflation and they start hiking and hiking rates super-fast. What’s that going to do? Bam, there goes your debt bubble, and then we’re done. Back to the Stone Age. Stock market 6,000 will probably seem like a dream come true because it might even go lower than that.
They are going to run this until they hit the wall. When is that going to be? I don’t know. I think they are going to keep this propped up until at least the mid-term election. The stock market is going to continue to go up. The distortions are going to get worse and probably much worse until we get a correction to fair value.”
Something I have warned about for years is now unfolding and coming true. This is a trend that has taken years to reach this point, but inevitably, it was unavoidable. The IRS has begun to crack down on cryptos and those who use it. Coinbase, after a year of battling a court order, as they valiantly tried to protect their customers, have lost and have been ordered to submit roughly 13,000 of their top clients account statements to the IRS. These top 13,000 clients are what many would classify as "whales", and are the biggest fish, and thus the easiest target for the IRS to go after first... Note that I said first. The IRS, smelling blood in the water is not going to stop here. For those who have tried to avoid the long arm of the law, by trying to hide under the thin veil of anonymity, the day is coming where they have to pay the piper. This day was unavoidable, as I have been saying for years, Bitcoin is not truly anonymous and can be traced with a little effort. This is made that much easier when using a service such as Coinbase, in which you must legally submit documents to prove your identity. To think that the IRS was not going to poke and prod, when so much money is on the line would be foolish. Do not take this as a total slamming of Bitcoin, or Cryptos as a whole, as I believe a decentralized currency, created by the free market, that competes alongside our currently horribly flawed fiat system has its benefits. However, this is a foreshadowing of the vision that many central banksters and financial elites have in mind, when thinking about the future of digital currencies. As has been mentioned numerous times as of late, more and more countries are pondering the idea of moving to a fully digital crypto style currency of their own. An idea that if enacted would give them horrific powers and abilities to control cash flows and thus your life as a whole. This vision would be a nightmare scenario, and would make our current fiat based system look like the gold standard, as at least, at this time you have some control via physical cash. Moving forward, we can expect the IRS to expand their reach and dig deeper and deeper into the crypto sector, attempting to squeeze more and more money out of those who have avoided their tax payments and not claimed their profits correctly. For those who have been fortunate enough to experience a large boon from your recent ventures, be smart and protect yourself. Plan accordingly and pay your taxes if you must. The risk is simply too high moving forward and the government will not stop until they have turned over every stone that they can. The piper is calling, and they are not going to take no as an answer. - As first seen on the Sprott Money Blog
In this part of Real Vision’s ground-breaking documentary, Grant Williams examines how gold is bought and sold around the world, explains the difference between ‘the gold price’ and ‘the price of gold,’ and explores some of the legends that surround the yellow metal. Grant also weighs up the possibility of the world returning to a gold standard and addresses the all-important accusations of manipulation that surround the subject of man’s 6000-year obsession.
In this episode of the Keiser Report Max and Stacy discuss restoring faith in capitalism with executive pay curbs as the ‘let them eat cake’ of the neoliberal era. In the second half Max continues his interview with Lyle Estill, president and co-founder of Piedmont Biofuels and author of Small is Possible, to talk about a world in which small is big business.
