Tuesday, May 31, 2016

Martin Armstrong:
The Euro Will Fail
The same computer model that forecast a coming collapse
of the Soviet Union now forecasts another collapse coming
This is the end for Britain if it remains in the EU and the media will not tell the truth or expose what is going on all to save the jobs of bureaucrats at the expense of their own families (feel free to forward this article to everyone) .. The structure of the EU government is ANTI-DEMOCRATIC since it removed every possible means for the people to ever change government. The one thing they get to vote on is the EU Parliament which neither introduces legislation nor does it vote to approve anything (see BREXIT – the Movie). That is all done behind the curtain. This is a dictatorship and every newspaper should be screaming at the top of their lungs .. The Euro WILL FAIL. The mainstream press will never report what our computer has to say when it goes against the government.
Yes, the FT published in 1998 on the front page when we forecast that Russia would collapse. But that was Russia – not Western Society. Sorry, its the same computer model which is forecasting the collapse ahead."
- Martin Armstrong
link here to the article
Yra Harris: It's About The
Debt Issues
CNBC's Rick Santelli speaks to Yra Harris, Vine Street Trading, about fixed costs, variable costs, job growth & debt .. "every crisis begins with debt" .. Harris promotes the Austrian School of Economics  - free market economics .. 5 minutes
EU Becomes Increasingly Orwellian
In Preparation For Possible Brexit
The Daily Bell explains how George Orwell’s 1984 is coming to pass in Europe .. "Brexit may be the galvanizing incident that Eurocrats are searching for. The trigger that gives them the justification to turn Europe from an economic union to a political one. Europe is essentially unfinished business. It is a work in progress. It needs an army and a political structure to turn into a full-fledged United States of Europe .. Enjoy your visits to Europe while you can. At some point, Europe will begin to grow more hostile to the Americas and perhaps to Britain too. And it will be no accident."
LINK HERE to the essay
Bail-In Precedent Being Set 
For Next Market Crash Coming Soon
Jeff Nielson Interview .. Stock Market in a Bubble, Mainstream Media Bias .. Derivatives Problem, World Debt vs Derivatives .. Bail-In’s Likely During Coming Crash .. Gold & Silver Correction, Bull Correction or New Bear Market? ..  Federal Reserve Interest Rates to Affect Precious Metals? .. 26 minutes
click to enlarge
"The Federal Reserve Has Deferred Reality"
"Overall we’ve come off this extraordinary period of liquidity and this extraordinary period of low interest rates… I think we’re unlikely to see a repeat of that going forward, and I think we’re going to see more supply in what had been pretty tight markets .. In the most simplistic terminology, I would ask you the question, if something is free, is it valued? Is it appropriately risked? .. We have distorted markets. Maybe we have bubbles .. The problem is I think the Fed should have raised interest rates two years ago, and therefore today would be able to make a much more rational decision as to what to do. The problem is that they’ve so deferred reality for so long that I think they have a serious credibility problem if they don’t raise rates."
- Sam Zell
The U.S. Has Been Living Beyond Its Means
For 30 Years
David Stockman* is deeply critical of the Federal Reserve's grand experiment .. the experiment will end badly .. on an accelerating U.S. recession: "It’s hard to say what the black swan is, but right now, if we look at this economy, inventories are building up. If we look at transportation, for instance, rail traffic is down 10%, trucking traffic is down, manufacturing has been negative for months." .. 5 minutes
Family Offices Are Going Back To Basics
Article highlights the movement by big money & pension funds to consider yield-based investments outside of the banking system - investments like water access rights, sand mines in Brazil, & avocado farming .. away from financial assets.
LINK HERE to the article
Currency Failures from Argentina 
To Zimbabwe: A Brief History Of Inflation 
Presented by Timothy Terrell at the Mises Circle at Furman University: The Coming Currency Crisis and the Downfall of the Dollar, a few years ago but still highly relevant .. 28 minutes
click to enlarge

Monday, May 30, 2016

Some Of The Unintended Consequences 
Of Easy Money For Too Many Years?
Deflation, Overcapacity, Trade Wars
"It’s unclear what China was thinking when it borrowed all those trillions to quadruple its capacity to make steel, cement and other basic industrial products. There’s no record of it checking in with the other countries that have such industries to see if a sudden surge of cheap imports was okay with them. Turns out that it’s not .. What happens to all that Chinese steel that was on its way to the US and EU before slamming into those prohibitively high tariffs? One of three things: Either it’s sold elsewhere, probably at even steeper discounts, thus pricing U.S. and EU steel exports out of those markets. Or it’s stockpiled in China for future use, thus lowering future demand for new steel production and, other things being equal, depressing tomorrow’s prices. Or many of China’s newly-built steel mills will close, and China will eat the losses related to this. Each scenario results in lower prices and financial losses somewhere. Put another way, as far as steel is concerned, the world’s fiat currencies are rising in value, which is the common definition of deflation. And since steel is just one of many basic industries burdened with massive overcapacity, it’s safe to assume that the process which began with oil and recently spread to steel will continue to metastasize throughout the developed and developing worlds. Next up: real estate. "Modern' monetary policy, designed to achieve exactly the opposite outcome (that is, rising prices for real things), will in response be ratcheted up to ever-more-extreme levels — which in this analytical framework is like trying to douse a fire with gasoline. The result is a world in which past over-investment produces slow growth and falling prices while ever-more-aggressive monetary policy distorts markets beyond recognition and encourages new over-investment in different sectors, which then proceed to follow oil and steel into the deflationary abyss. And so on, until the system collapses under the weight of its own absurdity."
- John Rubino*
LINK HERE to the commentary
The Business Of Central Banks 
Is Like Pornography?
Economist Eugene Fama thinks that interest rates will not help to bring back economic growth, & he warns that big banks are still posing a high risk to the financial system .. Central bankers are taking more & more extreme measures to stimulate growth. However, their actions don’t have any impact on the real economy, says Fama .. "Everyday we read headlines on what the central banks are doing. But their policies don’t have any effect. They are just like treading water. All the central banks are doing is substituting one form of debt with another form of debt. They’re issuing short term debt and using it to buy long term debt. In finance, we tend to think that’s a neutral activity, even though those stimulus programs are huge. So basically, I think it means the business of central banks is like pornography: It’s not the real thing."
LINK HERE to the article
Big Mac Index & Gold Explained 
by Genevieve Roch-Decter
GoldMoney's Genevieve Roch-Decter, Investor Relations & Corporate Development, shares just how well gold operates as a store of value over long periods of time .. 5 minutes