Putin plays chess, the “markets” play Tic-Tac-Toe.
The US is clearly now pushing Russia towards war. But if you read the signs correctly, Russia has been preparing for exactly this outcome for many years.
Out of several reasons that US power brokers specifically — but western power brokers more generally — are deeply unhappy with Russia right now is that Russia is committing a cardinal sin: it is openly, brazenly calling for an end to dollar dominance and has moved aggressively with China to achieve that aim.
No oil-rich country that has tried to move away from the dollar in the past twenty years has managed to do so without being attacked by the US, suffering a regime change, or being ruined by sanctions. In some cases, all three.
Not only has Russia managed to secure a string of heavy-duty bilateral trade and currency swap agreements over the past year, but they’ve done so despite ever-increasing threats and responses from the US and its allies.
And frighteningly, the equity markets in the West are completely ignoring the nested set of risks that accompany these moves and countermoves by two geopolitical heavyweights, which range from punishing trade wars (already underway), to electronic warfare, to an actual shooting war.
Putin plays chess, the “markets” play Tic-Tac-Toe.
A major event just happened in the financial markets that we have not seen since the financial crisis of 2008. If you rely on the mainstream media for your news, you probably didn’t even hear about it.
Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds.
Now it is happening again.
In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”. [Read more...]
Globally, financial nudity is now the norm in banking.
Real financial privacy within the conventional banking system no longer exists.
Even jurisdictions that nominally still have financial privacy laws on their books are casting them aside under pressure from the US, and without much of a fight.
If you still want to retain a certain degree of financial privacy, it’s necessary to hold some of your assets outside of the conventional banking system. [Read more...]
The new daily silver fix regime has begun. It will be run on the Chicago Mercantile Exchange’s platform (the Comex people), and supervised by Thompson Reuters. For the first six months access to the fix for observers will be free, so we can all see how it works.
This is a welcome advance on the old silver fix, where bullion banks negotiate the price in secret. This should be positive in the longer-term, because market transparency tends to lead to wider institutional and public participation. We are a long way from a fully transparent market, but at least the veil of dealing secrecy is being lifted a little.
Imagine you are running a hedge fund. You don’t deal in gold or silver because the physical market is too opaque. Now we have a visible auction process in silver, which you can watch on-line. You can monitor it for a week or two to get better a feel for how much money is required to move the price. It’s not just you, everyone else is also getting interested. Now you can assess your dealing risk far better and will be prepared to deal. And you look forward to the gold market becoming more transparent as well.
We are seeing a very important change in bullion markets to the disadvantage of dealers who hide behind OTC opacity. [Read more...]
The gold stocks are almost certainly in the early stages of a major new upleg. Given the widespread apathy and antipathy still plaguing this beaten-down sector, that’s hard for most traders to swallow. But the gold stocks’ performance this year has already been outstanding.
And heading into gold’s strong season, their gains should only accelerate.
Gold stocks’ overdue mean reversion higher is well underway. [Read more...]
A pure psychological warfare operation on the metals. I received several emails and phone calls from clients and colleagues who were in a panic. My response was:
“It’s a mid-August Friday, the rest of the world is at happy hour or in bed. Most of the big players in this country are at the beach. India was closed last night for their Independence Day, which put a lot less demand-stress on the physical market. Something really ugly is developing behind the scenes that is not apparent yet and that’s why they smashed gold during the one of the most quiet trading periods of the year.”
This is what happened at 7:40 a.m. EST, with no news or even triggers: [Read more...]
A robot that can make 360 burgers an hour could put many fast-food workers out of a job – exactly as its designers intended.
Silicon Valley-based Momentum Machines developed the device, which is more like an assembly line than a humanoid robot, reported Singularity Hub.
“Our device isn’t meant to make employees more efficient,” said Momentum co-founder Alexandros Vardakostas. “It’s meant to completely obviate them.”
The company says the burger-flipping robot could take the place of two or three line cooks and save restaurant owners about $90,000 a year in salary and benefits.
The robots also reduce liability, management duties, and the space needed to prepare food.
Now even the mainstream media is admitting that during an Ebola panic “people could be detained for long periods, merely on a suspicion they might have been exposed to some pathogen.”
As you will read about below, federal law contains some very vague provisions which could be used to indefinitely quarantine large numbers of Americans in the event of a significant Ebola outbreak in the United States.
So where would all of those people be put?
Welcome to Camp FEMA. [Read more...]
The US dollar is the most widely used currency in the world for international trade. Central banks and sovereign governments around the world hold trillions of US dollars.
And while these changes never happen overnight, it’s clear that the dollar is quickly losing this status.
The French Finance Minister recently called for a ‘rebalancing’ of currencies in global trade settlement. The British, French, Canadians, and Swiss are all on board with this trend.
As are, clearly, the governments of Russia, China, and India. N
early the entire world understands this trend. Everyone but the United States government.
They’ll be the last ones left in the room after nearly everyone else has headed for the exit, oblivious to their own destruction.
People who understand this shift and get out in front of it will make fortunes.
Just ask the Byzantine Empire how their global reserve currency, the solidus, ended:
The Battle Royale continues as the cartel has hammered gold back under $1300 once again with a last of $1293, and silver has been knocked under $19.50 to $19.45 on heavy volume the first day without an official London Silver Fix. [Read more...]
Mr. Macleod joined The Daily Coin to discuss the silver fix transformation.
With the London fix now officially history, are we about to see a period of unprecedented volatility in the silver market?
On China Macleod states: “The more we sell our gold down, at a cheap price, and the more China buys it, the more that’s going to turn out to be the biggest wealth transfer we’ve ever seen in history, from West to East.”
The greatest transfer of wealth in history. Let that sink in for a moment. [Read more...]
Low inflation would not explain the 80 basis point drop in long bond yields since January 1st.
“Flight to safety” would flow either into the very short end of the yield curve or into gold or under the mattress.
With retail sales, auto sales, and home sales all collapsing, the only explanation left is that the Treasury bond market is pricing in a severe economic downturn. This would explain also why high yield bond spreads have widened considerably over the past month. The big drop in oil prices this week would further affirm this.
The Treasury bond market is starting to price in economic Armegeddon. [Read more...]
The precious metals are lynch pins. They are nagging and persistent counter-parties to money printing gone wild.
The US currently has a Debt to GDP well north of 100%. That’s always a part of each hyperinflation.
Real (GAAP-derived) accounting puts ($6 Trillion) deficits at least five times tax revenue in the U.S.
Most modern hyperinflations started with only 2x deficit revenue.
Jobs, energy use, and real inflation are major (misery) indicators that we are in massive decline.
The only variable left to ignite is money velocity.
When prices begin to fly, the point of no return will be long since passed.
Skip the unfounded optimism, forget “hope and change,” ignore the media hype and face the brutal facts:
The world is overwhelmed with debt; far more debt than can ever be repaid with current dollars, yen, euros or pounds.
The choices are massive inflation and/or default.
The rumblings from the “drums of war” are reverberating across the globe.
The global economic system is heavily dependent upon confidence, especially confidence in the global reserve currency, the US dollar. This utterly essential confidence in the dollar is weakening, particularly as confidence in foreign policy decisions and global hegemony is deteriorating.
Numerous black swans are on final approach to disrupt the current global monetary system.
Gold shines in the face of unstable money, weakening confidence in the reserve currency, trade and currency wars, fear of another shooting war, crude oil supply disruptions, and destructive foreign policies. [Read more...]