Socio-Economics History Blog

Socio-Economics & History Commentary

Brokerage Accounts Bail In, Cashless, Gold Backed Yuan — Q&A with Lynette Zang and Eric Griffin

  • ITM Trading Streamed live on Jan 15, 2019
    Link to the Slides and Sources: https://www.itmtrading.com/blog/broke…
    Question 1. Gregory R: Will the bail-in rules apply to brokerage firms like Charles Schwab and Ameritrade?
    Question 2. Marc A: Do you think China will introduce a gold backed yuan? And what will that mean for the price of gold, the dollar and capital flows?
    Question 3. Frank B: In regard to going cashless, would gold/silver still be liquid in such a situation? Or would it be easier to “outlaw” gold and silver?
    Question 4. Sandra G: If someone tells you they are out of the markets because they have sold all their stocks and bonds and have put all their cash into T-Bills in a brokerage account – what do you say to them?
    Question 5. Dennis J: what do the world central banks purchase their gold with? Currency? Seems like a conflict of interest if they have control of their currency supply. Also does anyone even know how much currency is actually in circulation because most currency is digital.

end

January 18, 2019 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Asset Price Collapse Like 1929 | Alasdair Macleod

  • SilverDoctors Published on Jan 12, 2019
    The financial situation right now is looking like before the Great Depression, says Alasdair MacLeod from GoldMoney. MacLeod first updates us on Brexit. Is the UK going to do a hard Brexit, go for Theresa May’s proposal, or something else? He shares the positives and negatives of the possibilities. MacLeod says the US is experiencing an asset price collapse, which looks similar to right before the Great Depression. He shares the factors, such as seasonal buying and a weaker trend for the US dollar, creating a perfect storm for gold in 2019.

end

January 14, 2019 Posted by | Economics | , , , , , , , , , | Leave a comment

5 Doom Loops of a Crisis What You Need to Know

  • ITM Trading Published on Jan 11, 2019
    Links to slides and sources: https://www.itmtrading.com/blog/5-doo…
    When we talk about patterns, no discussion would be complete without examining the pattern of a “Doom Loop”. In fact, there are five key “Doom Loops” seen during financial crisis’s: The Intermediary, Sovereign, Collateral, Hedging and ultimately, the Real Economy Doom Loop. In any Ponzi scheme, confidence is key. What governments, central banks and Wall Street are really afraid of is that public loss of confidence in the financial system. Without that they won’t shop or hold their wealth in Wall Street contracts. They won’t believe in the “stimulus” provided by governments and central bankers. They might even buy physical gold and silver! If that happened, how would wealth be voluntarily transferred? So you can see the patterns in doom loops, but there are also clear patterns in real money gold and silver. This lies in our future, though the time to get into position is now.

end

January 12, 2019 Posted by | Economics | , , , , , , , , , , , , , , | Leave a comment

Three Scenarios of the Global Collapse

Global Super Storm: economic, financial and currency meltdown?? WW3??

  • Three Scenarios of the Global Collapse
    by https://gnseconomics.com/en_US/
    2019 has started more calmly after a very volatile year-end in the markets. Focus has been on the trade deal between China and the US and the words of the central bankers, most notably those of Jay Powell. However, this is all just a distraction, a side-show. The market volatility was only the first sign of an approaching global economic crisis, as we warned in December 2017.

    As the recent PMI figures across the globe show, a global downturn has started and the world is utterly unprepared for it. The global imbalances that have been growing for years cannot lead to anything else than a global crisis . However, there are different paths the crisis could take.

    Here, we present three scenarios that the global economy is likely to follow, when the global downturn morphs into something much more sinister. We’ll start with the most likely scenario: Global Depression.

    Scenario I: Global Depression
    In a depression, everything that has been driven the economic expansion goes into reverse. Asset markets experience severe contraction (in excess of 50 percent), credit becomes restricted, corporations and households de-lever fiercely, and global trade flows stall (for more details see Q-review 2/2018). GDP falls dramatically, between 10 to 25 percent. Unemployment skyrockets. The standard means of stimulus by central banks and governments are exhausted without any notable improvement in the economic environment.


    The implosion of the current asset bubble will start a relentless unwinding of leverage and risk in the global financial system. Because major central banks are still “all-in” with rates pinned at or near historic lows, and balance sheets bloated to extreme levels, their ability to respond will be highly restricted. Governments are also highly-indebted, and when interest rates rise, some sovereigns are likely to default, aggravating the global banking crisis, which will probably be in motion already. Combined with the zombified global business sector and a hard landing in China, these factors will lead the world economy into a depression. However, a possibility of something even more ominous is lurking in the background.

    Scenario II: Systemic Meltdown
    Systemic crisis would mean that the global financial melts down due to an existential deficit of trust between counterparties within the system. Before 2008, a systemic meltdown was mostly a theoretical construct. However, in mid-October in 2008, global leaders were faced with the possibility that banks would not open on Monday. The interbank markets had frozen, because no one knew the amount of the losses banks carried on their books. The global financial system was grinding to a halt. Politicians and central bankers saved the day by guaranteeing bank deposits and by providing capital and extraordinary guarantees to keep the important financial institutions standing and credit flowing.


    read more.

end

January 12, 2019 Posted by | Economics | , , , , , , , | Leave a comment

HARD LANDING AHEAD: Are Credit Air Bags Ready?

  • ITM Trading Published on Jan 9, 2019
    Link to slides and sources: https://www.itmtrading.com/blog/hard-…
    For the first time since 2008, no junk bonds were issued in December 2018. “This is clearly more than year-end jitters,” said Guy LeBas, a strategist at Janney Montgomery Scott. “What we’re seeing now is pretty typical for end-of-credit-cycle behavior.” Voila, they too are calling the pattern shift that indicates the end is close. What about governments and central banks? They have their own problems; Trade Wars, Government Shutdowns, Bexit, Italy, bloated balance sheets and massive deficits with trillions in new government debt required. Who do you think will come first?

end

January 11, 2019 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

Bix Weir: Debt Levels at ALL TIME Highs as Banks Wobble!! Deutsche Bank Can’t Take ANY More BAD NEWS!!

January 11, 2019 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Lior Gantz: Explosive Upside Potential For Gold & Silver

  • Lior Gantz: Explosive Upside Potential For Gold & Silver
    by https://www.silverdoctors.com/
    Lior agrees that the outlook for gold and silver is improving dramatically. Here’s why… Lior Gantz interviewed by Palisade Radio:

    Lior agrees that the outlook for Gold and Silver is improving dramatically. Recent market action has resulted in a rebound. In September mining stocks hit 52-week lows, and the regular markets are now entering bear market territory. Inflation is on the rise and many states are hiking their minimum wage. Recent US Dollar strength is actually a bearish sign.

    Mining shares need several things to catch a bid. They need interest rates to be trending lower, an unfavorable environment for the stock markets, indications of inflation, and unstable geopolitics. Time Stamp Reference:

    1:10 – Current state of precious metal stocks.
    2:10 – Recent market sentiment.
    2:40 – Interest rates and inflation.
    4:00 – Dollar performance and why the outlook is bad.
    6:20 – Gold and silver demand picture.
    7:30 – Gold silver ratio and potential upsides.
    8:30 – Silver will outperform.
    10:00 – Uranium sector.
    13:25 – Misconceptions about gold.
    15:45 – China’s performance in the world and gold.
    17:00 – How gold minimizes risk.

end

January 10, 2019 Posted by | Economics | , , , , , , , , , | Leave a comment

401k, BAIL-IN, BAIL-OUT, CREDIT AND DEBT. Q&A with Lynette Zang and Eric Griffin

  • ITM Trading Streamed live 5 hours ago
    Link to the Slides and Sources: https://www.itmtrading.com/blog/401k-…
    Question 1. Lots of Viewers: What is your opinion on withdrawing all funds from a 401k to position into other assets?
    Question 2. Woody G: How do you see the reset affecting brokerage accounts? Will these disappear down a dark hole or will the market survive intact?
    Question 3. Rajat S: Could you please explain the difference between bail-in and bail-out concept when it comes to saving financial institutions in situation of crash.
    Question 4. Sandy M: Would you suggest using the credit card line of credit to buy gold while it is still available? I’m assuming that when the crash happens that all credit will disappear.
    Question 5. Doug M: You said that that they are ready for a reset. Do you think that movement to come is going to be inflationary, hyper-inflationary, or deflationary? For those of us with some “debt”, are we going to get to pay off that “debt” with much cheaper dollars?

end

January 9, 2019 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

THE ANALYTICS CONFIRM IT: Gold & Silver Trader Sees BIG RESET Happening

end

January 5, 2019 Posted by | Economics | , , , , , , , , | Leave a comment

SAFEGUARD YOUR WEALTH: The “LIVE” Gold & Silver Strategy Event

January 5, 2019 Posted by | Economics | , , , , , , , , , , | Leave a comment

Monster-OTC Derivatives: A BLACK HOLE. By Gregory Mannarino

January 4, 2019 Posted by | Economics | , , , , , , | Leave a comment

ETF, Gold as Collateral, Treasuries… Q&A with Lynette Zang

  • ITM Trading Streamed live 5 hours ago
    Link to the Slides and Sources: https://www.itmtrading.com/blog/etf-g…
    1. Steve P: After the reset, instead of converting your metal, wouldn’t it be better if we used our silver and gold as collateral and borrowed fiat against it?
    2. Eric E: what can you say about when the 10-year Treasury Yield crosses below the Federal Funds rate which we seem to be nearing and has occurred prior to most recent recessions.
    3. Rich: why is the fed balance sheet important. If it is expanding, that means they have more bonds. Let them expire and get the cash. Nobody wants them so how can you reduce balance sheet?
    4. Robert K: There is currently a bill in the U.S. House (H.R. 5404) that proposes defining the dollar as having a fixed weight in gold. Do you think it can pass?
    5. Brendan F: Are ETFs that short the S&P just as risky as any other ETFs in a market downturn or market shutdown?

end

January 4, 2019 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Nearly 20% of Global Stocks Have FALLEN 50% or More! Yield Curve Inversion Sparks Fear!

January 3, 2019 Posted by | Economics | , , , | Leave a comment

Deutsche Bank Collapse Could Be the BIGGEST RISK To the Global Financial System in 2019!

January 3, 2019 Posted by | Economics | , , , , , | Leave a comment

4 BIG C’s LEADING THE CRASH: CONFUSION, Contraction, Contagion, Chaos

  • ITM Trading Streamed live 2 hours ago
    Link to the Slides and Sources: https://www.itmtrading.com/blog/four-… 
    The US government is now in its 12th day of an ongoing shut down, extending the political confusion that began in 2018. China’s PMI didn’t just show a slowdown, it showed a contraction. It wasn’t just visible in china, South Korea was contractionary for the 2nd month, Taiwan’s fell to a 3-year low, Malaysia PMI scored a record low. And those countries that export to China? Europe’s growth prospects look pretty gloomy too. It seems that China’s woes are globally contagious. And all of this, and more, has been creating market chaos.

    Private and public pension plans to the rescue of stock and bond markets. We’re already in a global pension crisis and as Rahm Emanuel once said, “Never let a good crisis go to waste”. While everyone will be impacted by the crisis, some will come out the other side in a much better position. Who? Those that retain real wealth. They will have the opportunity to buy real assets at bargain prices. This is why those that understand money, own gold.

end

January 3, 2019 Posted by | Economics | , , , , , , , , , | Leave a comment