The Central Banks Are Losing Control Of The Financial Markets

Dollars And Euros - Public DomainEvery 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....)

 

Investors Start To Panic As A Global Bond Market Crash Begins

Panic Keyboard - Public DomainIs 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....)

 

2 Things That Are Happening Right Now That Have Never Happened Outside Of A Recession

Question Dollar - Public DomainIf 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....)

 

Is The Stock Market Overvalued?

Stock Market Overvalued - Public DomainAre 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....)

 

A Recession Within A Recession

Recession - Public DomainOn 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....)

 

Baltimore Has Descended Into A State Of Lawlessness – And More Cities Will Soon Follow

Baltimore Riot Police - Public DomainDid 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....)

 

Emergency Powers Give Barack Obama Authority Over Just About Everything During A Major National Crisis

Barack Obama With His Hand On The Resolute DeskPresidents 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....)

 

Stocks Began Falling Right At This Time Of The Year Just Prior To The Last Financial Crisis

Stock Market Crash Bear - Public DomainHave 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....)

 

Is The 505 Trillion Dollar Interest Rate Derivatives Bubble In Imminent Jeopardy?

Bubble In Hands - Public DomainAll 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....)

 

 

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Egg Shortage In America As Bird Flu Has Already Killed 45 MILLION Chickens And Turkeys

Eggs - Public DomainDid 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...)

 

Has Caitlyn Jenner Become The Most Popular Woman In America?

Caitlyn JennerAt 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?

Something Else Coming In September: A UN Resolution Establishing A Palestinian State

Clock - Public DomainThere 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...)

 

America The Obese: Is There A Multibillion Dollar Conspiracy To Make Sure Americans Stay Overweight?

Fast Food - Public DomainAccording 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...)

 

Is ‘San Andreas’ A Cryptic Warning About What Is Going To Happen In America’s Future?

San Andreas Movie PosterHollywood 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...)

 

Prepare Your Homes And Neighborhoods For The Violence That Is Going To Sweep America

Crime - Bloody Handprint - Public DomainThe 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...)

 

The Elite Have A Great Fear Of Death

Death Skull - Public DomainIf 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...)

 

What Is Causing The Strange Trumpet Sounds In The Sky All Over The World?

Strange Sounds In The Sky - Public DomainAll 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...)

 

Is This Global Drought Being Caused By The Systematic Destruction Of The Hydrologic Cycle?

Global Drought - Public DomainHave 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...)

 

In Iraq, ISIS Is Winning And The United States Is Losing

ISIS Takes RamadiDuring 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...)

 

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