Every
great con game eventually comes to an end. For years, global central
banks have been manipulating the financial marketplace with their monetary
voodoo. Somehow, they have convinced investors around the world to invest
tens of trillions of dollars into
bonds that provide a return that is way under the real
rate of inflation. For quite a long time I have been insisting that
this is highly irrational. Why would any rational investor want to put
money into investments that will make them poorer on a
purchasing power basis in the long run? And when any central bank
initiates a policy of “quantitative easing”, any rational investor should
immediately start demanding a higher rate of return on the bonds of that
nation. Creating money out of thin air and pumping into the financial
system devalues all existing money and creates inflation. Therefore,
rational investors should respond by driving interest rates up. Instead,
central banks told everyone that interest rates would be forced down, and that
is precisely what happened. But now things have shifted. Investors
are starting to behave more rationally and the central banks are starting to
lose control of the financial markets, and that is a
very bad sign for the rest of 2015. (Read More....)
Is
the financial collapse that so many are expecting in the second half of 2015
already starting? Many have believed that we would see bonds crash before
the stock market crashes, and that is precisely what is happening right now.
Since mid-April, the yield on 10 year German bonds has shot up from 0.05
percent to 0.89 percent. But much of that jump has come this week.
Just a couple of days ago, the yield on 10 year German bonds was sitting at
just 0.54 percent. And it isn’t just Germany – bond yields are going
crazy all over Europe. So far, it is being estimated that global
investors have lost more than half a trillion dollars, and
there is much more room for these bonds to fall. In the end, the overall
losses could be well into the trillions even before the stock market collapses. (Read More....)
If
we are not heading into a recession, why does our economy continue to act as if
that is precisely what is happening? As you will see below, we learned
this week that factory orders have declined year over year for six
months in a row. That is something that has never
happened outside of a time of recession. We have also seen new
orders for consumer goods fall dramatically. In fact, the only time we
have seen a more dramatic decline in that number was during the last
recession. And when you add these two items to what I have written about
previously, the overall economic picture becomes even more disturbing.
Corporate profits have fallen for two quarters in a row, our exports
fell by 7.6 percent during the first quarter of 2015, and U.S.
GDP contracted by 0.7 percent during Q1. Even though Barack
Obama and the mainstream media are willingly ignoring them, the truth is that
these numbers are absolutely screaming that we are going into a new recession. (Read More....)
Are
stocks overvalued? By just about any measure that you could possibly
name, stocks are at historically high prices right now. From a technical
standpoint, the stock market is more overvalued today than it was just prior to
the last financial crisis. The only two moments in U.S. history that even
compare to our current state of affairs are the run up to the stock market
crash of 1929 and the peak of the hysteria just before the dotcom bubble
burst. It is so obvious that stocks are in a bubble that even Janet Yellen has talked
about it, but of course she will never admit that the Federal Reserve has
played a key role in creating this bubble. They say that hindsight is
20/20, but what is happening right in front of our eyes in 2015 is so obvious
that everyone should be able to see it. Just like with all other
financial bubbles throughout our history, someday people will look back and
talk about how stupid we all were. (Read More....)
On Friday, the federal government
announced that the U.S. economy contracted at a 0.7 percent annual rate during
the first quarter of 2015. This unexpected shrinking of the economy is
being primarily blamed on “harsh” weather during the first three months of this
year and on the strengthening of the U.S. dollar. Most economists are
confident that U.S. GDP will rebound back into positive territory when the
numbers for the second quarter come out, but if that does not happen we will
officially meet the government’s criteria for being in another
“recession”. To make sure that the numbers for Q2 will look “acceptable”,
the Bureau of Economic Analysis is
about to change the way that it calculates GDP again. They are just
going to keep “seasonally adjusting” the numbers until they get what they
want. At this point, the government numbers are so full of “assumptions”
and “estimates” that they don’t really bear much resemblance to reality
anyway. In fact, John Williams of
shadowstats.com has calculated that if the government was actually using
honest numbers that they would show that we have continually been in a
recession since 2005. That is why I am referring to this as a “recession
within a recession”. Most people can look around and see that economic
conditions for most Americans are not good, and now they are about to get even
worse. (Read More....)
Did
you really think that Baltimore would return to normal after everything that
has happened? On Thursday, a mother and her 7-year-old son were both shot
in the head in a double murder that has shocked the entire nation. Police
believe that the son may have been shot in order to prevent him from
identifying the individual that shot his mother. So is this what America
is turning into? A place where 7-year-old kids are executed in cold
blood? That mother and son were the 37th and 38th murder victims in the
city of Baltimore so far this month. That makes this the deadliest month
in Baltimore in 15 years, but because of all the controversy surrounding the
death of Freddie Gray, police in Baltimore are afraid to do their jobs at this
point. In some areas of the city, young men boldly smoke weed in public
and wave guns around at innocent bystanders without any worry that police will
intervene. Baltimore has descended into a state of lawlessness, and this
is just the beginning. As I discussed just the other day, the same
kind of lawlessness will soon sweep all across this country. (Read More....)
Presidents
have always exercised emergency powers, but now thanks to dozens of new laws,
regulations, court decisions and executive orders, Barack Obama is the most
powerful president in all of U.S. history. Of course the U.S.
Constitution does not actually give the president any special powers during a
time of national emergency, but over time presidents have decided that they
should be able to exercise such powers and the courts have generally agreed
with them. During World War II and prior to that, these emergency powers
were largely uncodified and were primarily used during times of war. But
since World War II things have completely changed, and this has particularly
been true since 9/11. Over the past decade or so, a whole host of
extraordinary powers have specifically been given to the office of the
president, and all that it takes to exercise them is a major “national
emergency”. So if we do have a full-blown economic collapse, a historic
natural disaster, a significant war or a massive pandemic, Barack Obama could use
the emergency powers that he has been given to essentially take authority over everything.
(Read More....)
Have
you heard of the saying “sell in May and go away”? Traditionally, the
period from May through October has been a time of weakness for stocks.
In fact, on average stocks hit their lowest point of the year on October 27th. And most
people don’t remember this, but the Dow Jones Industrial Average actually began
plunging right at this time of the year just prior to the financial crisis of
2008. Most people do remember the huge stock crash that happened in the
fall of that year, but the market actually started to slide in May.
Throughout the first four and a half months of 2008, stocks moved up and down
in a fairly narrow range, and the Dow closed at a short-term peak of 13,028.16
on May 19th. From there it was all downhill for the rest of the
year. So will a similar thing happen in 2015 as we approach the next
great financial crisis? Since March 20th, the Dow Jones Transportation
Average has already fallen by almost 800 points. So will
the Dow Jones Industrial Average soon follow? Well, only time will tell,
but the Dow was down 190 points on Tuesday. Signs of trouble are popping
up all over the place, and the “smart money” is getting out while the getting
is good. (Read More....)
All
over the planet, large banks are massively overexposed to derivatives
contracts. Interest rate derivatives account for the biggest chunk of
these derivatives contracts. According to the Bank for International
Settlements, the notional value of all interest rate derivatives contracts
outstanding around the globe is a staggering 505 trillion dollars.
Considering the fact that the U.S. national debt is only 18 trillion dollars, that is an
amount of money that is almost incomprehensible. When this derivatives bubble finally bursts, there won’t
be enough money in the entire world to bail everyone out. The key to
making sure that all of these interest rate bets do not start going bad is for
interest rates to remain stable. That is why what is going on in Greece
right now is so important. The Greek government has announced that it
will default on a loan payment that it owes to the IMF on June 5th. If
that default does indeed happen, Greek bond yields will soar into the
stratosphere as panicked investors flee for the exits. But it won’t just
be Greece. If Greece defaults despite years of intervention by the EU and
the IMF, that will be a clear signal to the financial world that no nation in
Europe is truly safe. Bond yields will start spiking in Italy, Spain,
Portugal, Ireland and all over the rest of the continent. By the end of
it, we could be faced with the greatest interest rate derivatives crisis that
any of us have ever seen. (Read More....)
Did
you know that 25 percent of all egg production in the United States has already
been taken offline due to the bird flu crisis? You aren’t hearing much
about this in the mainstream media, but at this point bird flu has claimed the
lives of 45 million chickens and turkeys
in America. When I wrote about this a month ago, the number of dead birds
was sitting at about 20 million. In just 30 days, the
death toll has risen by an astounding 20 million. This is a major crisis
and it is already causing egg shortages around the country, and yet very few
people seem alarmed about this? Why is that? (Read More...)
At
the age of 65, Caitlyn Jenner has become far more famous than Olympic athlete
Bruce Jenner ever was. She is the most high-profile American to ever
identify as transgender, and right now she is getting a global tsunami of media
attention – most of it extraordinarily positive. When Caitlyn’s Vanity
Fair cover was released on Monday, it
was front page news for almost every major news source in the western
world. But it isn’t just the media that is fawning over her. Within
just a few hours, Caitlyn Jenner received more than 100,000 likes on
a brand new Facebook page that she set up for her new identity. On
Twitter, the euphoria was even greater. Within fours hours and three
minutes of setting up her new Twitter account, she had a million
followers. That beat the official world record that had previously been
held by Barack Obama. As I write this, she now has more than 2.2 million
followers. So precisely why has Caitlyn Jenner become such an overnight
sensation, and could it be possible that she is now the most popular woman in
America?
There has been a lot of talk about
things that are going to happen in September, but something that has been
almost totally overlooked is the fact that the UN Security Council is likely to
be voting on a UN resolution which will establish a Palestinian state at that
time. Right now, France is working on a proposed resolution which would
give formal UN Security Council recognition to the Palestinians, would declare
that a divided Jerusalem is the capital of both Israel and a Palestinian state,
and would set the 1967 borders as the baseline for future negotiations which
would establish the final borders between the two nations. It is being
reported that France will submit this resolution for a vote after the 70th
session of the UN General Assembly begins on the 15th of September. At
this moment, 136 nations have already recognized a Palestinian
state, but the United States has always blocked recognition by the UN Security
Council. This time may be different though, because there are quite a few
indications that Barack Obama actually plans to back the French resolution in
September. If that happens, and the UN Security Council approves this
resolution, it is going to have enormous implications for all of us. (Read More...)
According to Gallup, America is now fatter than it
has ever been before. But how can this possibly be? After all,
Americans spend an astounding 60 billion dollars a year
on weight loss programs and products. After putting so much time, effort
and energy into losing weight, shouldn’t we be some of the healthiest people on
the entire planet? Sadly, the truth is that obesity has become a national
epidemic, and we are known around the globe for our huge size. The term
“fat Americans” has become synonymous with overweight tourists, and other
cultures mock us for our apparent sloth. But could there be more to this
than just the fact that we eat too much? Could it be possible that we
have been fattened up by design? (Read More...)
Hollywood has a long history of inserting
political messages, social commentaries, subliminal effects and even cryptic
warnings about the future into big budget films. So is someone attempting
to use “San Andreas” to tell us something? For many years, doomsayers
have been warning that the “Big One” is going to come along and rip the
coastline of California to shreds. Up until this moment, it hasn’t
happened, but without a doubt we have moved into a time of increased geological
activity all over the globe. As you read this article, 42 volcanoes around the planet are currently
erupting. That means that the number of volcanoes erupting right now is
greater than the 20th century’s average for an entire year. In
addition, we have been witnessing a great deal of very unusual earthquake
activity lately. Just in the United States, we have seen unusual
earthquakes hit
Michigan, Texas, Mississippi, California, Idaho And Washington within the
last month or so. Could it be possible that our planet has entered a period
of heightened seismic activity? And could it also be possible that
someone behind “San Andreas” is aware of this and is trying to warn us about
what is coming in our future? (Read More...)
The
thin veneer of civilization that we all take for granted on a daily basis is
beginning to disappear, and a new era of chaos and anarchy is coming to our
cities. I don’t know if you have noticed, but violence is increasing on
the streets of America. Over Memorial Day weekend, 29 people were shot in
Baltimore and 55 people were shot in Chicago. But of course the trend
that I am talking about is much broader than that. According to the FBI,
the number of police officers “feloniously killed” in the line of duty rose by
an astounding 89 percent in 2014. We live at a
time when Americans are becoming extremely angry and extremely frustrated, and
this is only going to intensify as economic conditions worsen. But
already we have seen some of this anger and frustration boil over into violence
in Ferguson and in Baltimore. And you know what? The vast majority
of Americans expect more of the same in the coming months. According to a
Wall Street Journal/NBC News survey that was recently released, 96 percent of all Americans believe that
there will be more civil unrest in America this summer. What we have seen
up until now is just the warm up act. The main event is still to come. (Read More...)
If there is one thing that the
elite of the world fear more than anything else, it is death. They spend
an extraordinary amount of time and energy attempting to shield themselves from
potential threats, to separate themselves from the general population and to do
whatever they can to extend their lifespans. They travel with multiple
bodyguards, they install “safe rooms” in their homes, they buy private islands
on the other side of the world and they invest huge amounts of money into life
extension technologies and research. They do all of these things in a
desperate attempt to battle an enemy that they have never been able to defeat –
death. And in this day and age, the elite are becoming more paranoid than
ever. They know that as the gap between the wealthy and the poor has
exploded that they have become bigger targets than ever. So firms that
provide private security, “safe rooms” and high tech “security bunkers” for the
elite are doing a booming business these days. Many of the elite live in
constant fear and absolutely crave security, and they are willing to pay big
bucks to get it. (Read More...)
All
over the globe, people are recording extremely loud sounds coming from the
sky. In many instances, these ominous noises sound like someone is
blowing a trumpet. So what are we supposed to make of these “apocalyptic”
sounds? Should we be concerned? Well, what we do know is that this
is truly a global phenomenon. In addition to being heard at locations all
over the United States and Canada, these sounds have also been recorded in
Germany, Hungary, the Czech Republic, Denmark, Sweden, England, Costa Rica,
Ukraine and France. If you go to YouTube and type in “strange sounds”,
you will literally get hundreds of results from all over the planet. Of
course there are many scientists that insist that there must be a “rational
explanation” for these strange sounds. Some theories have suggested
fracking, “rock bursts”, venting of high-pressure gas, atmospheric pressure or
the natural “background noise” of our planet as the causes of these sounds, but
so far none of those theories have been proven. But two things seem
certain – these noises sure are creepy, and they just keep on happening. (Read More...)
Have
you noticed that severe drought seems to be gripping much of the planet right
now? You probably have. But why is this happening? Could it
be possible that we are doing this to ourselves? Many want to try to link
the rise and fall of precipitation levels to temperature variations, but there
is something much more obvious that they are overlooking. Trees play an
absolutely critical role in our water cycle, and every single minute
the amount of land that is deforested around the globe is equivalent to 36
football fields. By extracting water from the soil and releasing
it into the atmosphere, trees provide a critical link in the hydrologic cycle
that we all depend upon. If there were no more trees, life on this planet
would become exceedingly difficult for humanity. So the fact that we are
literally ripping the lungs out of the planet is a very big deal. (Read More...)
During
the Iraq war more than 4,000 U.S. soldiers died, countless others were severely
injured, and the total cost to U.S. taxpayers was more than 2 trillion
dollars. But now whatever the U.S. military accomplished during that war
is being completely undone by ISIS. On Monday, we learned that ISIS had
fully taken control of the
strategically important city of Ramadi. Despite nine months of
airstrikes by the U.S. military, ISIS continues to move forward and take new
territory. Just a few years ago, American soldiers fought some incredibly
bloody battles on the streets of Ramadi, but now that city is in the hands of
the most ruthless terror organization on the entire planet. And since it
is only about 70 miles from Baghdad, Ramadi is going to make a fine staging
area for an all-out assault on the capital. No matter how you cut it, the
cold, hard reality of the matter is that the United States is losing in Iraq
and ISIS is winning. So what will the U.S. do if ISIS actually takes
control of the entire country? (Read More...)