Socio-Economics History Blog

Socio-Economics & History Commentary

China Just BAILED OUT One of the BIGGEST Companies In China! Then Literally Turned Off It’s VIX!

February 23, 2018 Posted by | Economics | , , , , , | Comments Off on China Just BAILED OUT One of the BIGGEST Companies In China! Then Literally Turned Off It’s VIX!

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?

end

February 23, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Comments Off on Central Banks Have Been Calling for a Financial System Reset Since 2013. They’ve Been Using This Time to Accumulate Gold

GOLD & SILVER Supply Dry Up, Prices and Timing. Q&A with Eric Griffin and Lynette Zang

  • ITM Trading Streamed live on Feb 20, 2018
    SEE BELOW FOR FULL QUESTIONS LIST AND FREE ITM GUIDE…
    Video & Link to Questions: https://www.itmtrading.com/blog/gold-…
    Viewer Submitted Questions:
    Question 1. BlueMariner777
    How can they falsely push down the spot gold market when folks are buying real gold based on those prices. Aren’t they doing something illegal to falsely push the market down?
    Question 2. Wayne C
    if physical gold/silver prices are tied to the spot price by the metals brokers, should I wait until after the crash to buy physical gold/silver at the lower prices?
    Question 3. Michael B
    How is the total asset value of the Global Bond counted? Is it counted based on the current market value or is it valued on the maturity value of all the bonds?
    Question 4. Kevin K
    I notice that the Fed is no longer publishing the Interbank loan information. Update?
    Question 5. Laura K
    January 2018 the banks stopped lending to one another. The same thing happened in 2008. What month in 2008? I’m interested to know how much time it was from the time they stopped lending, till the collapse. It might give us an idea of when the next one will happen.
    Question 6. Mark H
    can you include in a q&a session something about the paper to gold/silver ratio just added to the us debt clock web page bottom left if you go and look very interesting.
    Question 7. Anthony G
    when it comes time to pay the debt, what the hell are we going to use to pay other than our land, resources, blood? Is this part of the Act of 1871 when the US went bankrupt and became a corporation under admiralty law?
    Question 8. Dave
    How fast would the metal supply dry up in a huge turn up in metal prices?

end

February 22, 2018 Posted by | Economics | , , , , , , , , , | Comments Off on GOLD & SILVER Supply Dry Up, Prices and Timing. Q&A with Eric Griffin and Lynette Zang

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.”

end

February 22, 2018 Posted by | Economics | , , , , , , , , , , , , | Comments Off on Michael Pento: Rising Rates Forecast Insolvency, Profound Chaos Coming

Gerald Celente: Where Are The Markets Heading? Follow Gold

  • The Alex Jones Channel Published on Feb 19, 2018
    Gerald Celente of Trends Research hosts the 4th hour of The Alex Jones Show, advises listeners watch gold prices closely.

end

February 20, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , | Comments Off on Gerald Celente: Where Are The Markets Heading? Follow Gold

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.”

end

February 19, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , | Comments Off on Charles Hugh Smith: All Currencies Will See Catastrophic Devaluation Against Hard Asset. Financial Markets Definitely Destabilizing

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?

end

February 19, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Comments Off on Fail? Central Bank Balance Sheet Games

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.

end

February 17, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Comments Off on The Agenda Is Set, The Dollar Will Begin To Lose It’s World Dominance

Evidence Showing the Market is Manipulated: “Rampant Manipulation Of VIX”

  • DAHBOO77 Published on Feb 13, 2018
    We first exposed the “conspiracy fact” that VIX manipulation runs the entire market back in 2015 as the ubiquitous VIX-crushing algo-runs coincided with a non-stop shorting of VIX futures by a seemingly bottomless-pocketed player in the market… which happened to coincide with the arrival of Simon Potter as the head of The New York Fed’s trading desk… Learn More:

    https://www.zerohedge.com/news/2018-0…

end

February 16, 2018 Posted by | Economics | , , , , , | Comments Off on Evidence Showing the Market is Manipulated: “Rampant Manipulation Of VIX”

Bond Bubble Popping? | Rick Rule

  • FinanceAndLiberty.com Published on Feb 14, 2018
    President of Sprott US Holdings tells Silver Doctors why he’s bearish on bonds and bullish on precious metals. With the recent rise in the US 10-year Treasury yield, Rick Rule says the bond bull market could be at its end. A reversal in the bond market could be bad for most markets, including equities and real estate. “For 40 years,” Rule explains, “the most important determinant in precious metals’ prices has been the strength – or at least the perception or strength – in the US Dollar, particularly the US Dollar as expressed by the interest rate on the US 10-year Treasury.” In other words, if the bond bull market is over, then the precious metal bull run is just beginning. This year, Rule says he is more bullish on mining stocks than the physical metal.

end

February 16, 2018 Posted by | Economics | , , , , , , , , , | Comments Off on Bond Bubble Popping? | Rick Rule

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.

end

February 15, 2018 Posted by | Economics | , , , , , , , , , , , , , | Comments Off on The Criminal Banks KNOW Something Is Very Wrong — Lynette Zang

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.

end

February 15, 2018 Posted by | Economics | , , , , , , , , , , , | Comments Off on John Williams: US Deficit Is Beyond Control. Fed Triggered Stock Sell-Off – Dollar Next

Charles Hugh Smith: Something Changed (And The Mainstream Financial Sector Dares Not Talk About It)

  • Charles Hugh Smith: Something Changed (And The Mainstream Financial Sector Dares Not Talk About It)
    by Charles Hugh Smith via Of Two Minds via https://www.silverdoctors.com/
    The illusion that risk can be limited delivered three asset bubbles in less than 20 years.

    Has anything actually changed in the past two weeks?
     The conventional bullish answer is no, nothing’s changed; the global economy is growing virtually everywhere, inflation is near-zero, credit is abundant, commodities will remain cheap for the foreseeable future, assets are not in bubbles, and the global financial system is in a state of sustainable wonderfulness.


    As for that spot of bother, the recent 10% decline in stocks:
     ho-hum, nothing to see here, just a typical “healthy correction” in a never-ending bull market, the result of flawed volatility instruments and too many punters picking up dimes in front of the steamroller.


    Now that’s winding up, we can get back to “creating wealth” by buying assets–$2 million homes in Seattle that were $500,000 homes a few years ago, stocks, bonds, private islands, offshore wealth funds, bat guano, you name it. Just borrow whatever you need to borrow to buy more.

    (But don’t buy bitcoin. No no no, a thousand times no. It is going to zero, Goldman Sachs guaranteed it.)

    Ahem. And then there’s reality: something has changed, something important.
    What changed? The endlessly compelling notion that risk has magically vanished as the result of financial sorcery is now in doubt. If risk hasn’t been made to disappear, and even worse, can’t be corralled into a shortable instrument like VIX, then–gasp–every asset and instrument might actually be exposed to some risk.


    read more.

end

February 14, 2018 Posted by | Economics, Social Trends | , , , , , , , , , , | Comments Off on Charles Hugh Smith: Something Changed (And The Mainstream Financial Sector Dares Not Talk About It)

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.

end

February 14, 2018 Posted by | Economics | , , , , , , , | Comments Off on Plunge In Interbank Lending: The Straw That Broke The Fed’s Back

The Financial Market Mess, Revaluation of Price of Gold, Global Reset — Q&A with Eric Griffin and Lynette Zang

  • ITM Trading Streamed live 10 hours ago
    Eric Griffin takes your top questions to ITM Trading’s Chief Market Analyst Lynette Zang. Questions: https://www.itmtrading.com/blog/finan…

    Viewer Submitted Questions:
    Question 1. Silver Birddog: I have a question about median home value in 1920 vs median home value today. When the price is divided by ounces of gold, they are both roughly 239 ounces. Could you get The Queen to opine on that?

    Question 2. Francisco: I do believe gold is a good store of value, but I also know is vulnerable to government grabs. The government has forced people to hand over their metals at a price set by the government before, so they can do it again. One can’t ignore history unless you want to repeat it. What are your thoughts on that?

    Question 3. John B: do you think the bond market will crash along with the stock market?
    Question 4. Arnold Z: What happens when the quadrillion in derivatives blow up?
    Question 5. Rich: in light of a money reset in the US, why would holding a well-run precious metals mining company, be devalued?
    Question 6. Barry S: After looking over your slides and I watch your presentation of ” The Market is in Trouble” you show where the banks are not lending to each other as they used to. First is this a function of the Fed that stopped it? or is this a function of the interest rates that too much is at risk to lend out their funds?

    Question 7. Laura P: Would somebody please ask Lynette to include an explanation of what ‘running the stops’ means in terms of the ‘holy shit’ day the market just had.

end

February 13, 2018 Posted by | Economics | , , , , , , , , , , , , | Comments Off on The Financial Market Mess, Revaluation of Price of Gold, Global Reset — Q&A with Eric Griffin and Lynette Zang