panic

Something nasty is going on behind the scenes in the financial system that is not yet apparent.
Treasury futures opened in the early evening and the 10-yr traded down to 2.25%
.
Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week.
The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.

Is another TBTF mega bank on the brink of insolvency??

12

Most people that discuss the “economic collapse” focus on what is coming in the future.  And without a doubt, we are on the verge of some incredibly hard times.  But what often gets neglected is the immense permanent damage that has been done to the U.S. economy by the long-term economic collapse that we are already experiencing.
But because unprecedented levels of government debt and reckless money printing by the Federal Reserve have bought us a very short window of relative stability, most Americans don’t seem too concerned about our long-term problems.
They seem to have faith that our “leaders” will be able to find a way to muddle through whatever challenges are ahead.  Hopefully the following 12 charts below will be a wake up call.
The last major wave of the economic collapse did a colossal amount of damage to our economic foundations, and now the next major wave of the economic collapse is rapidly approaching.

leverage

Hyperinflation and hyper-deflation are just two different forms of the same phenomenon: credit collapse. Arguing which of the two forms will dominate is futile: it blurs the focus of inquiry and frustrates efforts to avoid disaster.”
The Fed’s leverage ratio (total assets to capital) now stands at just under 80x.  That compares with Lehman Brothers’ leverage ratio, just before it went bankrupt, of just under 30x.
Sometimes a picture really does paint a thousand words:

HarveyOrgan

The bankers were all over gold and silver today but both metals rebuffed all attempts of containment.
The huge volatility is not too good for our banker derivative friends.
Let’s head immediately to see what the data has in store for us today:

crash

Is the stock market about to crash? 
Without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash.   We are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.  So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again. 
Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.
The following are 9 ominous signals coming from the financial markets that we have not seen in years…

silver smash

Silver investment demand has rocketed from less than 10% of industrial silver demand’s size, to nearly 50% of its size in just 6 short years.   
This is historic.  And it spells biiiiiiiig problems for the “biiiiiiig players”.

launch rocket vertical

In late 2013, I predicted the Fed would taper all the way to zero in 2014, and suggested that taper would turn the Dow into a “wet noodle”, while creating a rally in gold prices. That’s the opposite of what most analysts thought would happen in 2014, and it’s exactly what has transpired.
The risk of a complete global stock market meltdown is growing now. The Fed’s number two man, Stan Fischer, has thrown gas on the fire, by aggressively suggesting the Fed’s next move will be to raise interest rates.
Many investors are assuming the Fed can engineer another huge stock market rally with further easing.  
Instead, what they could experience is something more akin to an economic ice age.

HarveyOrgan

Let’s head immediately to see what the data has in store for us today.
First:  GOFO rates:
We are moving closer and closer to backwardation!!

ebola

NBC Chief Medical Correspondent Nancy Snyderman was part of a film crew that worked with freelance cameraman Ashoka Mukpo covering the ebola virus in Monrovia, Liberia.  After it was discovered that Mr. Mukpo had come down with the virus, Dr. Snyderman agreed to quarantine herself for 21 days as part of a voluntary arrangement with the Centers for Disease Control and state officials.
Apparently, that didn’t last long.

moon

Have gold and silver seen a bottom yet, and is there a turnaround soon in the cards?
No, and no.  The realization that the Shanghai Gold Exchange has not had the impact of “truth in gold pricing” many expected, should come as no surprise.
It is still business as usual as gold and silver languish around recent lows

There is no date one can mark on the calendar that points to an end of the Rothschild dominance over Western fiat currencies and their suppression of the anti-dote to all fiats, gold and silver.

sale

It is important to Tune Out the Mainstream Media Hype and Spin (or Gloom and Doom, as the Case may be) and look at the Real Fundamentals.
So consider here an overview of the prospects for Four Essential Resources: Potable Water, Gold, Silver and Crude Oil.
There is a Delusion, somewhat widely accepted, that if an Essential Resource is in Short Supply, the Supply Problem can be solved if one applies enough Appropriate Technology and Capital to it.
Realistically, though, for certain Essential Resources, supply shortages, (i.e., Demand “Longages” ) can be Managed, to a point. YesSolved, No.
This Reality provides both an Opportunity and a Threat — a Profit Opportunity for those who are aware of it, and a Threat for those who are not.