Monday, December 30, 2019

Debt Reset Coming in 2020...

Wayne Jett is an accomplished lawyer who has argued cases in front of the U.S. Supreme Court. Jett is also an expert on the Federal Reserve. Jett thinks the globalist-cabal may force a debt reset sooner than later. 

Jett says, “I prefer to put it off to 2021 if possible, but those that are desperate, according to the events that are likely going to happen in bringing them to justice, they may be desperate enough to try to force a currency reset on us or a financial crisis that will cause it to be done in the year 2020 as opposed to 2021.” 

Jett closes and says, “I think we have a turning point in the last few days of this year and then in 2020. I think you are not going to see the President of the United States playing rope-a-dope any longer. I think you are going to see him go from defense to offense.”

- Source, USA Watchdog

Saturday, December 28, 2019

History Repeats: Debt Once Again Poses a Major Risk as We Head Into 2020

As we head into a new year, it is a time for reflection, it is a time for thinking about the past and the future and how best to prepare yourself financially for 2020 and the years beyond.

I believe that we are living in a very important time in history, when cultural changes are occurring at an unprecedented rate, which makes predicting what is coming next nearly impossible to do, however, to not even attempt to decipher the barrage of news we receive on a daily basis would be negligent as well.

It is often during these periods of time that people will do radical things to either get the change they wish to see unfold, or to keep the status quo. I believe that 2020 has the potential to be one of these years.

There are already countless examples of this unfolding in the world around us, geopolitically we live in a period of time in which things could turn south at the drop of a hat and all that is needed to ignite the flames is the smallest spark.

Regardless, as we move into the uncertainty that the 2020's are undoubtedly going to hold, it is during these times that you need to take stock and prepare your portfolio accordingly, however best you believe that to be.

This is not to say that any catastrophic event will unfold throughout the course of next year, the following year, or anytime within the foreseeable future. I, nor does anyone else have a crystal ball that can predict this.

However, there are great risks currently affecting the broader markets and thus our societies as a whole. Some of these are purely financially based, others are due to politics, most are intermingled.

One such example of risk is the current mess unfolding in the Repo Markets, which the Fed as of the past few months has had to throw billions of dollars at, desperately hoping to plug the numerous holes that continue to spring leaks.

This is something that I have written extensively about as of recently, as I believe it poses a dire threat to our current financial system if it cannot be brought back under control.

Hopefully, the Fed will be able to stop the contagion from spreading throughout the banking sector, preventing similar problems from occurring to what we witnessed following the 2008 crisis when banks became fearful of lending to each other and thus causing the system to grind to a halt.

Still, the Repo Markets are far from the only area in which debt poses a major risk to the health of our economies as a whole.

As recently reported by the World Bank, who just released a new book titled "Global Waves of Debt: Causes and Consequences", the world as a global economy is now currently going through a massive period of debt accumulation, the likes of which has only been seen a few times throughout mankinds history.

The World Bank reports;

"The global economy has experienced four waves of debt accumulation over the past fifty years. The first three debt waves ended with financial crises in many emerging and developing economies. 

The latest, since 2010, has already witnessed the largest, fastest and most broad-based increase in debt in these economies. Their total debt has risen by 54 percentage points of GDP to a historic peak of almost 170 percent of GDP in 2018."

As the World Bank states, this massive rise in debt levels has largely been kept in check by historically low interest rates, but for how long can rates remain this low?

Once rates begin to rise in a meaningful way, the whole charade begins to crumble and the house of debt comes crashing down, causing a monstrous financial disaster in the process.

Despite the reality that we now live in and the financial risk that surround us, gold and silver bullion continue to trade around the $1500 and $18 per ounce mark, which I believe the future is going to deem to be laughably cheap once looked back upon.

Eventually the broader markets are also going to come to this realization and precious metals are once again going to be brought back into the limelight, being bought at a feverish pace, causing prices to catapult higher.

Whether or not 2020 is the year that the debt bomb finally counts down to zero and explodes is yet unknown, but one thing is certain is that the fundamentals for owning precious metals has never looked better, of that I have no doubt.

Saturday, December 21, 2019

Repo Markets a Mess, Impeachment Crisis Pending, Everything is Fine

Fed Chairman Jerome Powell states that the markets are doing great, things are moving along nicely and the economy is growing at a healthy pace, this is great news and clearly the stock market reflects this very much "real" reality.

As can be seen from the charts above, the S&P 500 seems to agree with the Fed Chairman's very much true assessment of the current state of the US and global economies, with the S&P 500 continuing to make and trade at all time highs.

Of course, this is going to continue on forever, as currently nothing, absolutely nothing is on the near, medium, or even long term horizon that could possibly derail this very much real, not artificially inflated stock market rally.

That is until you take your rose colored glasses off and actually take a look at what is going on in the world around you.

Extensively, I have followed the ongoing trade wars between the United States and China and although some short term resolution may "possibly" be in order, this dire situation is far from over and even the initial compromises appear to be riddled with problems, problems that are not going to be silenced and are likely to flare back to the forefront as we head into the 2020 elections.

However, I believe this threat takes a back seat in comparison to the ongoing affliction that is affecting the vital overnight repo markets, an affliction that is keeping the Federal Reserve up late at night, despite their seemingly calm demeanor when they jawbone to the general public.

(Source, Bloomberg)

Does this look normal to you?

This historic expansion of the Federal Reserve balance sheet is occurring at the fastest rate ever, even faster than the months following the 2008 crisis and the massive Quantitative Easing programs that followed when the Fed began to intervene, placing a bandage on the gaping wounds that were done to the economy, wounds that were never allowed to properly heal because the sickness was only ever masked over, not cured.

The Fed is becoming the market in the overnight repo markets, as financial institutions once again become weary of each other, sparking similar concerns to the days following the 2008 collapse.

Contagion is a very real risk and the Fed knows this, that is exactly why they are taking such drastic measuring, revving up the printing presses to maximum capacity.

President Trump is also engaging in similar double speak as the Federal Reserve, on the one hand, praising how great things appear to be on the surface, which as shown above, they appear to be at face value, while at the same time calling for lower interest rates and encouraging the Fed to openingly enact a new, proper Quanitative Easing program.

Taking to twitter, President Trump stated the following, once again targeting the Fed;

“It would be sooo great if the Fed would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom!”

Of course, he knows that his chances of re-election depend greatly on two things, whether or not the economy "remains" strong at face value and also whether or not he is impeached.

The latter of these risks for President Trump is currently unfolding in real time and at the time of writing, a vote by the House on whether or not to proceed with impeachment is set to soon take place.

This scenario creates extreme uncertainty and anxiety for many within the United States and around the world, as this move could have major ramifications that would be felt for years to come.

Republicans believe that the Democratic party is simply trying to undo the 2016 elections and they are not going to forget anytime soon this slight against them.

Unfortunately for President Trump, it is very likely that the Democratic party controlled House is going to vote yes on impeachment. 

However, fortunately for him, the Senate, which is controlled by Republicans is incredibly unlikely to move forward with impeachment.

This leaves the choice up to voters in 2020, which in my opinion leans heavily towards a Trump re-election if the Fed can continue to keep the repo markets together and stem the current bleeding that is occurring. 

Whether or not they can is yet to be seen.

Yet, gold and silver bullion continue to have a heavy lid placed upon them, even opening sharply lower in today's trading session, despite all of the risks mentioned above and despite the fact that common sense would dictate that they should be moving higher.

Risks abound and uncertainty reigns supreme, but worry not...

"Everything is fine".

- As first seen on the Sprott Money Blog

Friday, December 20, 2019

Wolf Street Report: Is the Corporate Debt Bubble Ripe Yet?

What does it mean when the Fed and other central banks jointly bemoan the effects of their own policies? Worried about not being able to keep all the plates spinning?

Thursday, December 19, 2019

Bill Holter: Gold Market Fraudulent Cannot Deliver 5,900 Tons

Is a default in the gold market coming soon? Financial writer and precious metals expert Bill Holter says, “It’s already happened. It’s already happened. They can’t deliver. 

Just this month alone, in December, there are 41 tons (of gold) standing for delivery. I think they (COMEX) only have 37 tons to deliver on. You will not see the movement inside COMEX showing delivery. The 37 tons will not be eaten into to deliver. Are they paying a 25% premium to settle in cash? 

Who knows, it’s totally shrouded. You know by sheer size of the numbers that 5,900 tons, in less than one year, for delivery, that’s fraudulent. I hope COMEX or CME sues me because then we get into discovery. 

I am sure there are 10,000 lawyers that would do this on a pro-bono basis just to get to the truth.” When will this market blow up? Holter says, “I don’t know, you can’t ask me how long because this thing should have blown up years ago. 

When will it blow up? I can’t tell you, but I can tell you mathematically it cannot sustain.”

- Source, USA Watchdog

Tuesday, December 17, 2019

Fund Manager: Junior Exploration Stocks Are Generationally Undervalued

Gold and silver are set up potentially for an explosive move, fueled by the inevitable escalation of Central Bank money printing. The Federal Reserve has led the charge on this account over the last three months as the financial system has begun to veer off the rails.

Currently, the Fed is printing money at the fastest rate in its history. The brown stuff is hitting the fan blades in the financial system. By mid-January the Fed’s balance will be close its all-time high. Fiat currency devaluation aka QE aka money printing is like rocket fuel for gold and silver.

A lot of mining stock analysts are drooling over the charts of the large cap stocks. And kudos to Crescat Capital for sharing the chart of above (with my edit in yellow). But the junior exploration “venture capital” stocks are the most undervalued relative to the prices of gold and silver in at least the last 19 years, which is the amount of time I’ve been involved in the precious metals sector.

Last Thursday gold spiked up $14 before the stock market opened. But when Trump tweeted that a trade war “Phase 1” deal was close, gold went $20 of the cliff. However, February gold closed flat vs Wednesday’s close and March silver has reclaimed the $17 level. It’s a big positive that the “Phase 1” trade deal was signed because now Trump won’t have the ability to jerk the markets around with his silly “positive trade talks” tweets.

More important to the gold bull market, the Fed once again expanded the repo money printing QE operations. Early today (Thursday, December 12th) the Fed announced an additional $275 billion in repo operations around year-end. Adding all of it up, the Fed will be pumping half a trillion dollars into the repo system over year-end. This is unequivocally due to bank assets melting down and the need to finance new Treasury debt issuance.

The Fed’s re-liquification program will be given creative names – anything but “QE.” It started off with “balance sheet expansion” but that term was abandoned because of its transparency. The best one I’ve heard so far is “yield curve capping operation.” Watching Jerome Powell try to camouflage the Fed’s money printing is like watching a baby smoke a cigarette.

It’s a good bet that eventually the repo activity will be converted into a permanent “QE” money printing program. The best way to make this wager is via the precious metals sector.

- Source, Dave Kranzler

Sunday, December 15, 2019

Five Key Tips for Your 2020 Portfolio to Succeed

How should you invest your cash? What investment principles should you be following? Tracie McMillion, Head of Global Asset Allocation Strategy at Wells Fargo, breaks it down.

- Source, Kitco News

Saturday, December 14, 2019

The Fed's Recent "Not QE" is "Not Working" And People Are Starting to Notice

The alarm bells are ringing all across the financial industry and finally, the mainstream media is starting to take notice of just how big of a mess the repo markets truly are.

The Federal Reserve, since riding in on their white horses in mid-September have been tossing money at the repo markets, hoping to stabilize and fix the problems that are ailing it, but unfortunately for them, things don't appear to be getting any better, but worse.

Just like after the 2008 crisis unfolded, banks are seemingly uncomfortable lending money to this space and the strain is starting to be felt as the Federal Reserve has been forced to balloon their balance sheet once again, throwing over $300 billion at the repo markets in just three short months.


I have been watching this train wreck unfold since it began, and have written a number of articles on how the Fed's statement that this is "not QE", is completely and utterly laughable, as the expansion of their balance sheet is happening at such a rapid velocity, that it is now occurring at a faster rate than the immediate months following the announcement of QE2 and QE3!

This is truly staggering and the fact that the mainstream media is just now taking notice is an indication of just how asleep at the wheel they have been for the past three months, blissfully content with the Fed printing copious amounts of money out of thin air, and dousing the raging flames that have seemingly engulfed the vital overnight repo markets, the markets that help keep the treasury markets and so many others operating smoothly on a daily basis.

However, they are asleep no longer and a quick google search of the amount of articles covering just how big of a mess the repo markets currently are will make your head spin.

Everyone and I mean everyone seems to of now caught on to what is unfolding and they are worried.

This is leading many to speculate that QE4 may soon be on the way, possibly as soon as before the year ends, that's just how dire things have become.

CNBC reports;

“If we’re right about funding stresses, the Fed will be doing ‘QE4’ by year-end,” Pozsar wrote. “Treasury yields can spike into year-end, and the Fed will have to shift from buying bills to buying what’s on sale – coupons.”

Forbes also seems to agree;

"Others see QE4 happening sooner rather than later. In a research report this week, Credit Suisse analyst Zoltan Pozasar told investors that, in order to calm short-term funding markets, the Fed will need to implement another round of quantitative easing “by year-end”—which is only three weeks away."

Other articles written by Barrons, The Washing Post and countless other sources also all seem to agree that whatever is currently unfolding in the repo markets is not good and a more serious approach is needed and needed soon.

Call it what they want, however, I believe history is going to show that QE4 is not going to begin at the end of 2019, nor the beginning of 2020, nor even later that year, but that it has already begun. 

QE4 began with the Federal Reserves massive injections into the repo markets in September 2019, despite the Fed's absurd claim that an accumulation of over $300 billion in debt, within three months, is "not QE".

The question is, how much more will they accumulate? How much more before they can put out this debt garbage fire and how many more digital, fiat dollars are going to be created out of thin air before the pain stops?

Who knows. But one thing that I do know is that this isn't over yet. Far from it.

Keep stacking.

- As first seen on the Sprott Money Blog

Friday, December 13, 2019

The Fed is Getting Desperate, QE Explosion Incoming

The latest from the Federal Reserve, and the trade talks - are they connected? Why the lift in repo transactions ahead?

- Source, Walk the World

Wednesday, December 11, 2019

Making Sense Of A Crazy Week In Gold, Silver, Markets & Economy

From the trade deal/no trade deal drama to the nail-biting moves in the dollar, the stock market, and gold & silver, this week's been quite the rollercoaster ride! Still, it was very important for the markets and the economy, for many reasons...

- Source, Silver Doctors

Monday, December 9, 2019

The real gold price rally hasn’t even started yet, says analyst who called $1,500

As long as the monetary base keeps growing, gold prices will keep rising, says E.B. Tucker, director of Metalla Royalty & Streaming. 

“The [monetary base] is never going to go down,” he said. “Gold is not a way to speculate and make a big profit, it’s a way to protect your wealth. It’s wealth insurance.”

- Source, Kitco News

Wednesday, December 4, 2019

The Big Conversation: What Emerging Markets Are Saying About Growth

This week Real Vision uses Refinitiv's best-in-class data to let you in on the big conversation about the signals being given by emerging market currencies. 

The market chatter looks at the potential for the US to escalate trade tensions with Europe. And the whisper looks at what to expect from incoming ECB president Christine Lagarde.

Monday, December 2, 2019

Catherine Austin Fitts: Deceleration of Dollar Integrity Significant and Serious

What adds to the uncertainty of the U.S. dollar is the “missing” $21 trillion that was discovered by Dr. Mark Skidmore and analyzed and recognized as a huge problem by Catherin Austin Fitts, publisher of the popular Solari Report. 

Also, analysis Fitts has done on the government making the “missing money” a “national security issue” with FASAB rule 56 (Federal Accounting Standards Advisory Board) makes the secret money a hidden horror the general public is totally unaware of. Fitts explains, “The dollar is under pressure because we have been talking about the ‘missing money’ and FASAB rule 56, and the dollar is not what it used to be. 

If you look at the integrity behind the dollar, it’s not there. If you read “The Real Game of Missing Money,” which we did this big article for investors to do due diligence, the arrangements behind the dollar and the Treasury market do not have integrity. The deceleration of the integrity of the dollar is very significant and serious.

You’ve got to be more resilient, and it’s not just finances, you’ve got to be more resilient in terms of safety. If we have this kind of breakdown with the rule of law with FASAB rule 56, it’s not going to take long before it breaks into your neighborhood.”

- Source, USA Watchdog