nuclear-collapse-endChina is dumping Treasuries and corporate executives are dumping stocks.  Total U.S. debt outstanding hits new highs daily.   Once again “smart money” is unloading its paper “assets” on an unsuspecting public. The delinquency and default rates in mortgage, auto and credit card debt is beginning to spike up, according to the latest reports made available and not disseminated through the mainstream media.
The U.S. markets are going Super Nova – don’t be left holding bag…

 

From PM Fund Manager Dave Kranzler:

ETF flows tend to be a good contrary indicator when they become extreme, so the buying frenzy doesn’t bode well for U.S. equities.  – David Santschi, CEO of TrimTabs

If the Federal Reserve were a private corporation and did not have a money tree, it would be technically insolvent – i.e. bankrupt. As of its latest balance sheet the Fed was reporting a book value (net worth) of $40.4 billion.   But the Fed does not have to mark to market its assets.   Given the recent 100+ basis point move in the 10-yr Treasury, if the Fed were forced to mark to market its $3.8 trillion Treasuries and mortgages, it would be forced to reduce the holding value by close to $400 billion, taking the Fed’s net worth to negative $360 billion.

This is the most conservative valuation scenario.   The Fed has other holdings, on and off balance sheet, that would likely take the Fed’s book value well past negative $400 billion if mark to market accounting were applied.

Think about this for a moment:   the U.S. dollar is backed by a Government and Central Bank, both of which are technically bankrupt.   The only difference between what happened to Greece and the U.S. is the U.S.’ ability to print money unfettered.

SilverMapleSDBullionJust like water, markets eventually find their own level of balance.  At this point the U.S. stock market, is the most unbalanced financial market in the world.  A Trim-tabs report out yesterday revealed that the public threw $98 billion into U.S. stock ETFs between November 8th and December 5th.  Compare this to the $61.5 billion that went into stock ETFs over the entire year in 2015.   Currently the rate of cash flooding into stock ETFs for December is even higher than November.

Money from the public is literally flooding into the stock market, making this the most dangerous stock market I’ve witnessed in 30+ years as a financial markets professional.  If the GAAP accounting standards enforced in 1999 and 2007 were applied now to corporate earnings, this would prove to be the most overvalued stock market in history on an “apples to apples” accounting basis.

A supernova is an astronomical event that occurs during the last stellar evolutionary stages of a massive star’s life, whose dramatic and catastrophic destruction is marked by one final titanic explosion.

For a short time, this causes the sudden appearance of a ‘new’ bright star, before slowly fading from sight over several weeks or months.  – Wikipedia

The U.S. financial markets, specifically the U.S. dollar and the stock market, can be likened to fiat currency-based financial markets “Super Nova.”  The public and the momentum-chasing hedge funds are desperately chasing the “appearance” of the stock market’s “bright new star.”   Unfortunately, it’s an illusion.  The stock market is headed for catastrophic destruction.

I don’t know if this final explosion will occur early in 2017 or if there will be on last “Weimar-like” push fueled by a round of money printing substantially larger than “QE 1 thru 4.”   Either way, the U.S. financial system is heading toward a period of unprecedented wealth destruction.

I’m not going to sit here and urge anyone who will listen to move their money into the safety of physical gold and silver because I have no idea how diabolically aggressive the Fed and the banks will be in exerting downward pressure on the price of gold and silver using fiat paper gold.  No one knows and anyone who proclaims to know is full of horse hooey.   I’m moving any money not needed for expenses into physical silver.  I know a sale when I see one and sovereign-minted silver bullion coins are on “fire sale” right now.

Unfortunately, the only chance you have to financially survive what is coming at us is to get your money out of all financial “assets.”  These are not “assets.” They are fiat paper liabilities issued by a Federal Reserve that is technically insolvent by at least $360 billion and likely multiples of that when off-balance-sheet considerations are factored in to the equation.  If you don’t want to buy precious metals, at least get your money out of the stock market.

While Wall Street shills and the financial media is busy seducing the public with its incessant “Dow 20,000” rally cry, corporate insiders are busy unloading their shares hand-over-fist.  Every company (other than mining stocks) I’ve analyzed over the last month has been characterized by extremely heavy insider selling.  The parabolic rise in the dollar is annihilating corporate revenues and profitability.   Follow the money here because insiders are broadcasting this fact loudly.

China is dumping Treasuries and corporate executives are dumping stocks.  Total U.S. debt outstanding hits new highs daily.   Once again “smart money” is unloading its paper “assets” on an unsuspecting public.  The delinquency and default rates in mortgage, auto and credit card debt is beginning to spike up, according to the latest reports made available and not disseminated through the mainstream media.

The U.S. markets are going Super Nova – don’t be left holding bag…

2017-silver-american-eagle-coin

    • Another major “QE” (printing) will be GREAT for gold and silver… and may continue to lift the stock markets… BUT… I doubt if the people or congress will put up with another QE… even if it is targeted at infrastructure projects, instead of buying all the banks toxic trash bonds… which, of course, did nothing for the economy… but did a HUGE favor for the crooked bankers… with a Goldman Guy at Treasury and the top economic advisor jobs… we the people are still probably screwed.

    • Your typical fear porn by those who promote metals. The equity markets are only going up along with the dollar. If the Dow closes below the 19970 reversal level at Decembers close we will see a minor correction before moving higher.  The S&P P/E ratio peaked in the 87 crash at 50/1, the dot com bust 46.5/1 and in the 2008/9 crisis 122/1. Today we are at only 24/1. The Dow simply can not crash with the S&P at these levels.

      Another reason it won’t collapse is that there is not enough of retail participation in equities. All crashes are caused by a high number of these in markets and when they get spooked and sell prices fall triggering HFT algos and off we go. Without this high number, prices can not fall low enough to trigger the algos.

      What is driving these markets are international capital flows especially from Europe and Japan. Capital is being pulled from banks especially in southern Europe causing liquidity problems. Very few people who control large amounts of capital are going to feel secure parking it in these banks. Entities in Europe, India, Turkey and Venezuela have been exchanging their local currencies for dollars causing a dollar shortage in international markets.

      China is a huge importer of US commodities and a strong dollar makes these too expensive in foreign markets. The FED has asked central banks to sell dollars so it can weaken hence China selling treasuries for dollars and then selling dollars. A strong dollar is simply not good for the US, China and the world.

       

    • The Biggest $$$$$$$$$$$$ will go to the SMALLEST market Ag Silver, and guess what there is not a chit load left in the Ground that China ,Mexico don’t own…NICE! time to own physical Ag .I used to think the price would go in increments NOT anymore …Just a MOON SHOT ! Ag @$1000.00 an once …watch and learn ,or start buying like there is NO Ag Silver left  imo.

    • “China will Au Gold back the Yuan>>>>>>>>>>>>they don’t want any ‘stinking’ dollars lol!”  

       

      That makes 2 of us LOLOLOLOLOLOL.  _JOHNLGALT. 

    • lol @Falco

      As if anyone knows.  Could be tomorrow, could be a decade from now.  There’s no way to know.

      But the big question then would be, “What effect would this have on the US economy?”.  Unfortunately, there’s no way to know that either, but I suspect that the US economy would be in the crapper if that happened.  Those who have silver at that time would be OK.  Those who do not would be royally screwed, blued, and tattooed.

       

  1. Looking at the price chart today, silver began the day 2% down but something happened at 11:30am. The market made a U-Turn and started moving up and ended  the day positive. This is a very bullish sign. The bulls have finally put their foot down and said this is the line that will not be crossed.

  2. A supernova is an astronomical event that occurs during the last stellar evolutionary stages of a massive star’s life, whose dramatic and catastrophic destruction is marked by one final titanic explosion.

    Note: this is where gold is made!

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