Socio-Economics History Blog

Socio-Economics & History Commentary

Central Banks Have Been Calling for a Financial System Reset Since 2013. They’ve Been Using This Time to Accumulate Gold

  • ITM Trading Streamed live on Feb 21, 2018
    Link to slides and supporting sources: https://www.itmtrading.com/blog/insid…

    Insiders have been busy leading up to February. In fact, Goldman Sachs reports that, during the recent stock rout, they had their busiest week ever as buybacks surged 4.5 times last years average corporate buying. Snap has made Even Spiegel a very wealthy man and apparently, a very lucky one too. On February 3rd some huge buyer made Snap stock gap up from $13ish to $21ish. Perhaps they know something we don’t. Oh Snap! It’s All About Confidence And for the Fed’s next magic trick…Interbank Lending is discontinued. Banks lending to each other provided liquidity during past crisis. But that support dried up during the 2008 crisis leaving central banks, as the lender of last resort.

    And while we’re told everything is fine, this graph shows the loss of confidence banks have in each other’s solvency (ability to repay a loan). Real Money Gold Central banks have been calling for a financial system reset since, at least, 2013. They know the old system has been on life support since 2008. They’ve been using this time to accumulate gold. Wouldn’t it make sense to follow their lead?

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February 23, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

Michael Pento: Rising Rates Forecast Insolvency, Profound Chaos Coming

  • Michael Pento: Rising Rates Forecast Insolvency, Profound Chaos Coming
    by Greg Hunter’s USAWatchdog.com 
    Money manager Michael Pento says recently rising interest rates are signaling big trouble for the economy. Pento contends, “There are so many things that can go wrong with rising interest rates.  First of all, you have to understand that the permabulls that you hear on CNBC will tell you there is nothing wrong with rising interest rates.  It is a symbol of growth.  If you look at industrial production and retail sales for January, they were negative.  So, rising rates are occurring, not because of growth, they are caused by insolvency concerns.  That is the key metric here, and they are credit risks and insolvency concerns.”


    Who is insolvent? Pento says, “Europe is insolvent.  The United States is insolvent. . . . We have $21 trillion in debt.  That’s seven times our revenue.  So, we are technically insolvent.  You haven’t seen anything yet because as interest rates rise, debt service expenses rise. . . . Certainly, beyond a shadow of doubt, the Bank of Japan is insolvent.”

    Pento says 10-year Treasury rates could easily go to “7%,” which is a massive move from a little less than 3% today. This would not be some wild swing, but a “return to long term averages.”  What are central bankers going to do then?  Pento says, “I think the end game is central bankers are going to come back in and buy everything.  They are going to buy every fixed income sovereign debt instrument that they can find because interest rates are going to spiral out of control. . . . You are going to have a panic out of Treasuries, a panic out of high yield, a panic out of leveraged loans and a panic out of bond funds.”

    Pento also predicts, “For the first time in 40 years, you are going to have bond prices and equity prices in free-fall. That happened in the 1970’s, but it’s going to be worse because in the 1970’s, you didn’t have an insolvency concern. . . The chaos coming to markets is here.  It’s not going away, and it’s not going to be brushed under the rug.  It’s not going to stay on the sidelines for another few years.  The years from 2007 to 2017 were the years central banks were buying everything.  There was no volatility, and stocks just went up.  Those days have ended, and the volatility is only going to become much more profound.”

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February 22, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Charles Hugh Smith: All Currencies Will See Catastrophic Devaluation Against Hard Asset. Financial Markets Definitely Destabilizing

  • Charles Hugh Smith: All Currencies Will See Catastrophic Devaluation Against Hard Asset. Financial Markets Definitely Destabilizing
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Financial writer and book author Charles Hugh Smith has been watching the extreme movements in financial markets closely. Is he nervous?  Smith says, “Oh yeah, it’s definitely destabilizing.  In other words, it’s becoming not just more volatile, the whole underlying structure of our economy is destabilizing.  What I mean by that is it’s becoming more brittle or fragile.  That is fundamentally why we are seeing these wild swings.  People are swinging between . . . keeping the money machine like it is for another nine years, and the other side of the coin says wait a minute, we have already had a weak expansion for nine years.  It’s almost the longest expansion in U.S. history.  A normal business cycle doesn’t run in one direction forever. . . .If you don’t allow your economy to have a business cycle recession, then you are simply making it more fragile by encouraging really marginal and risky investments, and that’s where we are now.”


    One very big problem is a dramatic loss in buying power of the U.S. dollar, but it’s not just the dollar. According to Smith, “All these currencies, there is nothing backing the currencies except the government’s force.  That’s the yen, the euro, the dollar and the Chinese yuan.  They are all going to have a catastrophic drop against real assets because they are all based on too much leverage, too much debt, too much money being pumped into the financial system that ends up in unproductive speculation.  You can’t grow your debt at six times the rate of your economy.  In other words, if you are creating $6, $8 or $10 of debt to eke out $1 of low productivity growth, you are dooming your currency, and all currencies are doing the same thing.  All the currencies are going to take a big drop at some point . . . relative to real stuff.  Real stuff is commodities we need:  water, grains, food, oil, natural gas and, of course, precious metals.  Everybody knows they have been money for 5,000 years, and I personally feel there is a role for crypto currencies.”

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February 19, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , | Leave a comment

Fail? Central Bank Balance Sheet Games

  • ITM Trading Streamed live on Feb 16, 2018
    Supporting slides and links: https://www.itmtrading.com/blog/fail-…
    We are told that the economy is strong. With global stock markets near all-time highs and real estate prices near or better than 2006, many people believe this is true. Happy days are here again! No one really knows what specifically caused the recent market sell-off. Some say it was the whiff of higher inflation caused by the highest wage increase since 2009. Is it possible that the recent market rout was a central bank experiment? After all, none of the standard flight to safety assets performed as they normally would. And this would be a good time to set one up with all that repatriated money coming back to support the markets. The smartest guys in room on money are buying physical gold, don’t you think you should too?

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February 19, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

The Agenda Is Set, The Dollar Will Begin To Lose It’s World Dominance

  • X22Report Published on Feb 16, 2018
    Global trade wars have begun. Tariffs are being considered, Trump will make the decision by April 11. The last time the American public was so confident the stock market crashed. This is when the central bankers make their move, when everyone feels good and the illusion takes hold they bring the whole thing down. China is ready and prepared to go live with their petro yuan futures. This is to challenge the petro dollar. Is this the end of the petro dollar, yes but it has nothing to do with the petro yuan. Be prepared the central bankers are getting ready to bring down the economy.

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February 17, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

The Petro Dollar Is Dead, Dollar Devaluation, Pensions Lost, World Currency — James Rickards

http://www.globalresearch.ca/the-financial-new-world-order-towards-a-global-currency-and-world-government

Click on image for article.

http://americanfreepress.net/?p=1263

Click on image to goto article.

February 16, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Gerald Celente Talks Key Trends with Lynette Zang

  • ITM Trading Streamed live 7 hours ago
    In this edition of Coffee with Lynette she interviews Gerald Celente, who developed the Globalnomic® methodology to identify, track, forecast and manage trends, is a political atheist.

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February 16, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | Leave a comment

The Criminal Banks KNOW Something Is Very Wrong — Lynette Zang

  • SGTreport Published on Feb 13, 2018
    Lynette Zang from ITM Trading joins me to discuss the economy, precious metals and the storm that’s brewing. The criminal banks have stopped lending to each other because they know something is very wrong. Will the masses realize it – or be told about it – before it’s too late? Probably not. But you will.
https://www.itmtrading.com/blog/insider-trading-market-troubleare/

Click on image for article.

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February 15, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

John Williams: US Deficit Is Beyond Control. Fed Triggered Stock Sell-Off – Dollar Next

  • John Williams: US Deficit Is Beyond Control. Fed Triggered Stock Sell-Off – Dollar Next
    by Greg Hunter’s USAWatchdog.com 
    In his latest report, economist John Williams asks the question, “Did the Fed trigger the stock sell-off?” Williams answer, “It sure looks that way.  With all the heave selling, the bond yields were rising and investors didn’t like that.  Risings bond yields means someone is selling bonds.  The Fed was not selling bonds, they were not rolling over the bonds they normally wood. . . . There was a big drop in the amount of bonds the Fed was holding in the last week by about $10 billion.  That was the biggest weekly decline since August of 2012. . . . It was enough to put some upside pressure on the interest rates . . . and that was a trigger (for the stock market sell-off).  Normally, you don’t crash from an all-time high, not that it crashed, but you did have pretty heavy selling.  You didn’t see much movement in the dollar.  You didn’t see much movement in gold, and when this market really goes, I think you are going to see the dollar selling off very rapidly and gold being a flight to safe haven.”


    Williams goes on to say, “The Fed caused this latest round of selling because they are reducing their balance sheet. I would say the Fed is in a real awkward position here because the economy is not doing what they are advertising, at least what you are seeing in the headline data.  I think you are going to see a rapid slowdown in the next couple of months.  Then you are going to see the markets say what’s the Fed doing here?  The Fed will have to go back to quantitative easing (QE or money printing).  When you see that again, that should be a heavy sell signal for the dollar.  It will be a flight from the dollar that will spike oil prices and give us an inflation problem.  This will tend to spike gold prices.  As foreign investors flee from the dollar, they will also be fleeing from the stock market and the U.S. bond market.  You will see stock selling and bond selling and then higher yields, and the Fed will be coming in and start buying the bonds again.  I think that is where we are heading.”

    read more.

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February 15, 2018 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Plunge In Interbank Lending: The Straw That Broke The Fed’s Back

  • Plunge In Interbank Lending: The Straw That Broke The Fed’s Back
    by , https://www.themaven.net/mishtalk
    Interbank lending took a historic dive. Readers ask “What’s happening?” Let’s investigate. The plunge in interbank lending is both sudden and dramatic. What’s going on?

    Fed Tightening Two Ways
    The short answer is a straw broke the Fed’s back.

    A more robust explanation is the Fed is tightening two ways: The first by hiking, the second by letting assets on the balance sheet roll off.

    Both measures have a tendency to push up long-term interest rates. This is another explanation for the long-end rising. Despite conventional wisdom, inflation and wages have little to do with it. We can see the effect in other charts.

    The Fed started balance sheet reduction in October of 2017. Unwinding the balance sheet escalates greatly in 2018.

    * The treasury unwind started at $6 billion per month, increasing by $6 billion at three-month intervals over 12 months until it reaches $30 billion per month.
    * The mortgage debt unwind started at $4 billion per month, increasing in steps of $4 billion at three-month intervals over 12 months until it reaches $20 billion per month.

    Does the Fed Know What It’s Doing?
    Janet Yellen answered that question directly in her speech A Challenging Decade and a Question for the Future, at the Herbert Stein Memorial Lecture National Economists Club on October 20, 2017.


    read more.

https://www.itmtrading.com/blog/insider-trading-market-troubleare/

Click on image for article.

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February 14, 2018 Posted by | Economics | , , , , , , , | Leave a comment

Good Guys Are Preparing America For A Major Economic Transition: Bix Weir

February 12, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Lynette Zang: Wall Street, Manipulation and Lies…Oh My

  • ITM Trading Streamed live 6 hours ago
    Supporting Links and Slides: https://www.itmtrading.com/blog/insid…
    Is this the beginning of the visible fiat market collapse the central bankers have managed to postpone since 2008? Perhaps, time will tell. But frankly, at the least, this should be a wake-up call. People want to ride the markets and believe they can get out just before a crash. Did you know in 2008? Did you know that January 28th the current market high? Did you sell your stocks on January 27th? Only if you were lucky. Personally, I’d rather be two weeks too early, than one second too late. If you have not done so already, take advantage of this gift and reposition your wealth into REAL assets that are the only undervalued monetary instruments on the planet…physical gold and silver.

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February 10, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , | Leave a comment

Alex Jones Full Show: Globalists Strike Back! US Stock Market Crashes 1000+ Points

  • The Alex Jones Channel Published on Feb 8, 2018
    Deep State Spies on PRESIDENT Trump! – Shocking revelations reveal that the DOJ and the FBI continued to spy on President Trump after he made home in the White House! The stock market is also tumbling as the Deep State tries to manipulate the economy to make Trump look bad, and Bitcoin insider Roger Ver explains some of the inner workings of the market.
https://www.cnbc.com/2018/02/02/us-futures-move-lower-as-investors-worry-about-rising-yields.html

Get the ‘666’ message? It is a Synagogue of Satan orchestrated take down. Click on image for article.

https://nypost.com/2018/02/02/dow-plunges-550-points-in-biggest-one-day-drop-since-2016/

Get the ‘666’ message? It is a Synagogue of Satan orchestrated take down. Click on image for article.

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February 9, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment

Hear What Peter Schiff Says Is Coming Next: ‘There’s No Way To Stop This’! Trump is the Fall Guy

  • Hear What Peter Schiff Says Is Coming Next: ‘There’s No Way To Stop This’! Trump is the Fall Guy
    by Mac Slavo, February 8th, 2018, SHTFplan.com
    Peter Schiff, a market analyst who had accurately predicted the 2008 recession and the recent stock market plunge says more is coming.  Wait until you hear what he says is on the horizon for America and the global economy in the Trump era.

    In an interview with Infowars‘ Alex Jones, Schiff details what we can all expect from the economy.  And even though Trump has fought to save the economy, the federal reserve is working against the president. “Unfortunately, he is the fall guy. There’s no way to stop this,” Shiff begins.

    “The problem is so big that the minute the Fed has to try to solve it, it’s gonna unleash a much bigger one [problem],” Shiff says.  Jones begins his intro by not sugar coating the problem the economy is in thanks to government interference. The economy is a giant bubble and it will pop at some point, not just deflate.

    read more.

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February 9, 2018 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Jim Willie: Dollar Rejection, Gold Trade Notes, Cryptos … Bond Market Storm

  • Jim Willie, GoldenJackAss
    February 5th:  a wide variety of topics were covered within the diverse financial system, with a firm attempt to integrate the many concepts, platforms, and events within the crypto currency and blockchain arena, but with emphasis given by the Jackass to the primary event of today being the death march of the King Dollar and the sunset of the Petro-Dollar system

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February 9, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Leave a comment