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Deutsche Bank refuses clients’ demand for physical gold

© Michael Dalder

Clients of Germany’s biggest bank who have invested in the exchange-traded commodity Xetra-Gold are facing problems when they want to obtain physical gold, according to German analytic website Godmode-Trader.de.

Xetra-Gold is a bond on the Deutsche Börse commodities market, and Deutsche Bank is a designated sponsor. On the website, Xetra-Gold says its clients have the right for physical delivery of gold.

“Physically backed: The issuer uses the proceeds from the issue of Xetra-Gold to purchase gold. The physical gold is held in custody for the issuer in the Frankfurt vaults of Clearstream Banking AG, a wholly-owned subsidiary of Deutsche Börse. In order to facilitate the delivery of physical gold, the issuer holds a further limited amount of gold on an unallocated weight account with Umicore AG & Co.,” says Xetra-Gold.

However, despite claims that every virtual gram of gold is backed by the same amount of physical gold, clients have been refused the precious metal upon demand.

Bill Gross Warns “Central Bankers Are Destroying The Engine Of The Real Economy”

In the US the year-on-year trend for productivity has turned negative . Most central bankers dismiss this fact as a short-term aberration. But the Japanese economy provides an example of what interest rates at or near zero can do to a large, developed economy. The answer is not much: not much real growth; not much inflation – and, together, not enough nominal GDP growth to repay historic debt should yields on sovereign debt ever return to normal.

Money Mafia/ Midweek Open Lines

Money Mafia/ Midweek Open Lines

Date: Tuesday – August 2, 2016
Host: George Noory
Guests: Paul Hellyer, Open Lines

Former Minister of National Defense in Canada, Honorable Paul Hellyer, updated his work researching the New World Order, the US shadow government, and the ‘Money Mafia,’ all of which he believes are at the top of the cabal that’s been running the US and much of the world since World War II. This cabal started with the Council on Foreign Relations in 1940, and later included the secretive Bilderberg Group, and the Trilateral Commission, he cited. “There’s never been anything like it…where a small group of people call the shots and the politicians are really just talking heads,” he stated. He characterized this New World Order as a diabolical and dictatorial empire.

For the cartels, there’s no future in using a military to take over a country– instead they use things like money, in which they have monopoly on its creation, said Hellyer. Through currency manipulations, debt, and ever increasing trade agreements, they transfer more and more power to the banking cartels and transnational corporations, he continued. He expressed disappointment that President Obama was peddling the Trans-Pacific Partnership, which he considers to be part of the cabal agenda.

Hellyer also spoke about the evidence for UFOs and alien visitation, which he first became acquainted with when reading Col. Corso’s book The Day After Roswell. Climate change is a real and serious issue, he said, and he believes the cabal and US military currently has the technology (Zero Point Energy) to switch over from fossil fuel to clean energy in just seven years, which could help offset the problem.



China’s New Silk Road To Make A Big Move In Gold

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Submitted by Nick Giambruno via InternationalMan.com,

It’s one of the great engineering achievements in history…

At 48 miles long, the Panama Canal cuts through a narrow strip of land in Central America.

It links up the Atlantic and Pacific oceans, allowing ships to pass through the landmass instead of sailing around a whole continent.

Ships pay dearly to use this shortcut… up to $375,000 for a one-way toll.

There’s only one other route between the Atlantic and Pacific oceans: a 7,872-mile journey around the tip of South America.

This trip can take weeks and cost hundreds of thousands of dollars in fuel.

The U.S. built the Panama Canal in the early 1900s. At a cost of $9 billion in today’s dollars, it was the most expensive construction project in U.S. history at the time.

So when other countries (including Germany and Japan) tried to build a second canal in nearby Nicaragua, the U.S. wouldn’t have it. A second canal, just 500 miles away, would dilute its value.

In 1912, the U.S. military even occupied Nicaragua to make sure there would be no Nicaraguan canal.

And there never was.

But that’s all about to change…

The Chinese are preparing to build a Nicaraguan Canal. Like the Panama Canal, it will be a shortcut for ships to pass through Central America.

If all goes to plan, China will finish its canal in about 10 years.

And here’s the thing…

China’s Nicaraguan Canal is just a small piece of a much larger strategy of building strategic infrastructure to bypass U.S. control.

The focal point of this strategy is a project called the “New Silk Road.” And if China has its way, the New Silk Road will help China dethrone the U.S. as the dominant world power.

The New Silk Road is the biggest story you’re not hearing about. The U.S. media has barely made a peep about it. Maybe because it’s just too big and complex to fit into soundbites…

The World’s Most Ambitious Infrastructure Project

For over a thousand years, the ancient Silk Road was the world’s most important land route. It was a main trade route for lucrative Chinese silk.

At 4,000 miles long, it passed through a chain of empires and civilizations and connected China to Europe. Merchant Marco Polo traveled to the Orient on this path.

Today, China’s New Silk Road will include high-speed rail lines, modern highways, fiber optic cables, energy pipelines, seaports, and airports. It will link the Atlantic shores of Europe with the Pacific shores of Asia. It’s history’s biggest infrastructure project.

New Silk Road Routes

Chinese President Xi Jinping announced the gigantic plan in late 2013. The Chinese government rules by consensus. They’re careful long-term planners. When they make a strategic decision of this magnitude, they’re totally committed.

Plus, the Chinese have the political will to pull it off… and the financial, technological, and physical resources to make it happen.

There’s a saying that the new national bird of China is the construction crane. I was recently in Shanghai, Hong Kong, and Macau, and I can see why. These cities are full of impressive buildings and large skyscrapers.

The plan is still in the early stages, but important pieces are already falling into place. Late last year, a train carrying containerized goods left Yiwu, China. It arrived in Madrid, Spain, 21 days later. It was the first shipment across Eurasia on the Yiwu-Madrid route, which is now the longest train route in the world. It’s one of the first components of the New Silk Road.

In short, the New Silk Road is all about building alternatives to U.S. power.

Part of that, of course, is displacing the U.S. dollar, the world’s premier currency.

So it should be no surprise that China’s New Silk Road project is about to make its first big move in the gold market.

China’s Gold, a Threat to Dollar Dominance

According to recent press reports in Asia, China’s $40 billion New Silk Road Fund is likely to make a bid for a gold mine in Kazakhstan.

The Vasilkovskoye mine is owned by Glencore, an Anglo-Swiss mining company. It produced 380,000 ounces of gold last year. The New Silk Road Fund is considering buying it for $2 billion.

This is just the beginning…

China will continue to build new infrastructure for the New Silk Road. And continue to accumulate lots more gold.

This is not good news for the U.S.

Most people don’t realize it, but if the dollar loses its status as the world’s reserve currency, the dollar would collapse. It would cause a financial hurricane of historic proportions. It would be much worse, much longer, and very different than what we saw in 2008 and 2009

 

Deutsche Bank Profit Plunges 98 Percent As The Outlook For “The World’s Riskiest Bank” Darkens

TOPICS:BankingEconomic CollapseMichael Snyder
JULY 28, 2016of-banks-bank-runs-and-bail-ins.w_hr

What’s Starting Now Will Overturn The Entire System: “Complete Collapse of Everything”

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“There’s too much of everything…” The debt, the currency collapse, the global economy, and the institutions we’ve all taken for granted.

All of it is head for prolonged collapse, and revolution.

economic-collapse-consequence

Michael Krieger of Liberty Blitzkrieg warns about the immense scale of the problems that have been triggered by the Brexit – and could lead to the complete disintegration of the European Union.

The status quo is being disrupted, and a major, major event is coming. This one may well be big enough to wipe everyone out, that is those who aren’t able to duck out and survive.

As Michael Krieger tells Greg Hunter at USA Watchdog:

Former Wall Street analyst and journalist Michael Krieger contends the recent so-called “Brexit” chaos is signaling something much bigger than coming economic trouble. Krieger explains, “I think the biggest thing with Brexit, and I think it is far bigger than an economic downturn, is the disintegration and ultimately the overthrow of the entire status quo regime, the entire post WWII establishment. That’s way bigger than an economic decline. It’s way bigger than the economic decline in 2008 and 2009. When you think about it, since 1945, we’ve had all kinds of economic declines. We’ve had bear markets and bull markets, but the status quo, the establishment, the basic principles that have been guiding the world for, let’s say 80 years now, those are what are going to be overthrown, and that is a way bigger deal than an economic downturn, in my opinion.”

On the odds of a financial crash, Krieger contends, “In my writings, when I first came out of Wall Street, I focused on debt, I focused on economics and I focused on financial markets. I did all of that stuff, but I stopped doing that for one simple reason.

It was obvious to me . . . that this thing had only one way to go, which is a complete collapse of everything. We’re going to need to start over. There’s too much debt. There’s too much corruption. There’s too much BS. There’s too much war. There’s too much everything that is bad in this world, and debt is one aspect of it. Are we going to have to wipe out the debts one way or the other? Of course, we will. I guess the reason I have stopped talking about that and writing about that is because it is so obvious. So, what I have been doing over the last three years is getting people aware and engaged on everything, not just the economics, but the political corruption. Every single industry in this world is basically hitting peak corruption, peak shadiness, peak violence and peak everything. So, it’s not just the debt or the economies that are going to collapse, it’s everything, the political establishment and the social fabric. All of these things we have been living under our entire lives will be replaced by something else. . . . The only question is, are we going to get something better or are we going to get something worse?”

Things have reached fever pitch, and the populists are fed up with the system, and ready to revolt. Technology has changed all the arrangements, and literally everything, not only in economics, but in politics, and throughout society, is about to change in a transformative way.

Oil Set For Bigger Drop As Historic Gasoline Glut Forces Early Switch To Winter Blends

Refiners are shifting to yet another desperate attempt to delay the inevitable market equilibrium point by switching from summer to winter blend as demand for the former has disappointed. The problem is that by doing so early, stocks of winter blend will fill that much sooner, and absent some miraculous surge in demand in the winter months, the moment when the price of oil tumbles has merely been postponed for a few months while assuring that the drop – when it comes – will be much more acute.

 

 

 

 

Deutsche BankGETTY

Germany’s largest lender Deutsche Bank will shut one-quarter of its branches

Deutsche Bank will close 188 branches across Germany in the coming months, with 51 of them in the North Rhine-Westphalia region.The lender has been forced to implement dramatic austerity measures after share prices plummeted by a staggering 48 per cent, marking an all-time low.It has also pulled out of 10 foreign markets, including Russia and Australia, and is poised to cut around 3,000 full-time jobs.
Earlier this year Wolfgang Schaeuble, Germany’s Finance Minister, claimed he had “no concerns” about Deutsche Bank’s plunging share prices.And co-CEO John Cryan insisted: “Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position.”But financial expert Max Keiser has poured cold water on their claims, saying the bank is “technically insolvent” and runs a “ponzi scheme”.

Deutsche BankGETTY

The bank has pulled out of 10 foreign markets and will cut 3,000 full-time jobs

It’s dead, it’s insolvent, the bank is dead

Speaking on Russia Today’s Keiser Report, he added: “The bank needs to go out of business, because they are not solvent.”But politicians, including Schaeuble, allow for financial engineering products to come onto the market that mask insolvency.

 

 

Let us take a look at what is happening in France. Here we have a wildly unpopular government staging fake terrorist attacks in order to extend martial law. The government is doing this because the Italian banking system is collapsing and will take the French banking system down with it. So, in order to distract the French people from th financial troubles they need to create a fake external enemy to unify the country around.

 

War Is Coming And The Global Financial Situation Is A Lot Worse Than You May Think

On the surface, things seem pretty quiet in mid-July 2016. But underneath the surface, it is a very different story.  As you will see below, the conditions for a “perfect storm” are coming together very rapidly, and the rest of 2016 promises to be much more chaotic than what we have seen so far.

smaghi

BREXIT-BELEAGUERED BANKSTERS BACK TO BEGGING FOR BAILOUTS!

Nothing is more shameless in a bedazzling sort of way than rich banksters standing on the public curb with their hands out. First, we had the admission this past week by a major French bank that Italian banks are so sick (and so too big to fail) they could cause systemic banking failure throughout Europe if not bailed out by over-taxed taxpayers. 

This article by David Haggith was published first on The Great Recession Blog:

Lorenzo Bini Smaghi — who was a member of the European Central Bank’s executive board and who is now Chair of French megabank Societe Generale — said the only way to save European banks, if they start to fall like dominoes due to Italy’s banking problems, is with taxpayer-funded bailouts.

Europe’s banking market faces the risk of a systemic crisis unless governments accept the idea of taxpayer money as the ultimate recourse in a crisis, Bini Smaghi said. Any intervention should be as swift as possible, he said. (Newsmax)

Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank

It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. But, if the deaths of Lehman Brothers and Bear Stearns were quick and painless, the coming demise of Deutsche Bank has been long, drawn out, and painful.

 
THE WALL STREET JOURNAL
The big bank bloodbath: losses near half a trillion dollarsPublished: July 7, 2016 6:08 p.m. ET
At 20 big banks, plunging share prices this year have erased a quarter of their combined market value 

The Bearish David Rosenberg Reemerges: “What If I Told You Employment Actually Declined 119,000 In June”

“When the Household survey is put on the same comparable footing as the payroll series (the payroll and population-concept adjusted number), employment fell 119,000 in June — again calling into question the veracity of the actual payroll report — and is down 517,000 through this span. The six-month trend has dipped below the zero-line and this has happened but two other times during this seven-year expansion.”

‘Currency Crash’ Drives British Pound To A 31 Year Low As Deutsche Bank Sinks To The Lowest Level Ever

By Michael Snyder, the Economic Collapse Blog.

British Pound Brexit - Public Domain

We did our best to warn stackers..get your gold in hand….

Sweden’s Largest Gold and Silver Dealer’s Bank Accounts Closed, Shut Out of Banking System!

The cartel have tipped their hand.  The plan is not to come after your gold and silver coins, it is to shut down thegold and silver dealers themselves, and prevent access of safe haven capital flows from reaching the safety ofgold and silver bullion.

Case in point?  Sweden’s largest gold and silver dealer Tavex Guld & Valuta, whose bank accounts were suddenly closed Thursday without notice by Swedish bank SEB due to ‘a general business decision’Notice posted on Tavex Guld & Valuta’s website that as of 15:30 on June 30th 2016, they can no longer accept bank deposits or transfers as SEB has shut down their accounts without notice, leaving the PM firm scrambling to set up alternate payment systems

Germany Just Blew Up Italy’s Bank Bailout Plan

Germany opposes any attempt to shield private bank investors from losses if Italy pushes ahead with plans to recapitalize lenders. Merkel’s government says that European Union rules on handling struggling banks should apply in any rescue effort, including forcing losses on shareholders and some creditors before public money can be injected. The government in Berlin rejects the argument that the U.K. vote to leave the EU constitutes an “exceptional circumstance.”

 

We Just Witnessed The Greatest One Day Global Stock Market Loss In World History

euro burningBy Michael Snyder

More stock market wealth was lost on Friday than on any other day in world history.  As you will see below, global investors lost two trillion dollars on the day following the Brexit vote.  And remember, this is on top of the trillions that global investors have already lost over the past 12 months.  It is important to understand that the Brexit vote was not the beginning of a new crisis – it has simply accelerated a global financial crisis that started last year and that was already in the process of unfolding.  As I noted on Friday, we have been waiting for “the next Lehman Brothers moment” that would really unleash fear and panic globally, and now we have it.  The next six months should be absolutely fascinating to watch.

According to CNBC, the total amount of money lost on global stock markets on Friday surpassed anything that we had ever seen before, and that includes the darkest days of the financial crisis of 2008…

Brexit: Individualism > Nationalism > Globalism

Ludwig von Mises understood that self-determination is the fundamental goal of liberty, of real liberalism. Today’s Brexit vote fired a shot heard around the world, to challenge the wisdom of the “globalism is inevitable” narrative. Ultimately, Brexit is not a referendum on trade, immigration, or the technical rules promulgated by the (awful) European Parliament. It is a referendum on nationhood, which is a step away from globalism and closer to individual self-determination.

Pound IN FREEFALL

CAMERON QUITS

Why Janet Ain’t Yellin’ “Higher Interest” Anymore: Jobs Worse than Expected and Far Worse than Reported

By David Haggith, the Great Recession Blog.

BurningMoneyPlane

In the fall of 2015, I said the Federal Reserve would raise interest rates once in December and then would not be able to fly any higher after that. The stock market would crash shortly after the Fed’s pulled up on the interest stick (which it did in what became the worst January in stock market history), and Fed’s hopes of recovery would fade away.

I also said that, in spite of a continually degrading economic situation around the world, the Fed would badly want to lift its interest target again in order to prove its recovery had recovered from the first lift. The fact that it would not be able to without stalling the economy completely wouldn’t mean it wouldn’t try. If it did try, however, it would find out in hindsight that any additional pull back on the stick would crash the economy into the dust of the earth.

Here we are half a year later. The collapse did not continue down as quickly as I thought it would. The stock market and oil market stabilized and recovered after January, but the US and global economy remain on a downward flight path, evidenced by falling GDP stats and rapidly declining job numbers.

The Fed certainly appears to be trapped. Fed officials have pounded the pavement to talk about their intention to raise interest rates, but every month faces additional reasons that the Fed is unable to do so.

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Former Morgan Stanley Chief Asia Economist: “Don’t Listen To The Ruling Elite, The World Economy Is In Real Trouble”

“Don’t listen to the ruling elite,” warns former Morgan Stanley Asian Economist, Andy Xie, “the world economy is on the cusp of a prolonged period of stagnation and instability.” Xie points out that the ruling elite is blaming it on people seeing things (skeptic and fiction peddlers), and that “their strategy is to change people’s psychology.” Unfortunately for them he concludes, “the world is catching fire and that fire will eventually reach their Davos chalets.”

 

Gold Spikes Above $1275 On Sudden Billion Dollar Bid

Tyler Durden's picture

8,500 contracts in 4 minutes – or just over a billion dollars notional paper gold bid…

Keith Neumeyer: Silver, More Rare Than the Market Understands – The Daily Coin

Keith Neumeyer: Silver, More Rare Than the Market Understands - The Daily Coin
By Rory Hall – The Daily Coin 2 days ago 1862 Views No comments

April 25, 2016

For the past three plus years I have been asking how silver and gold have always been available when we can see stress in the markets all through the supply chain. According to several prominent analyst, and producers, global silver and gold production declined in 2015. In Mexico alone silver production is down approximately 6%. According to some of the information that we reviewed, here at The Daily Coin, silver production increased due to the low price of silver.

Silver has become a just-in-time product. With Eric Sprott, Sprott Assets, recently announcing a $5 billion addition of physical silver to the PSLV ETF we shall see what is happening with the silver market at the institutional level.

Keith Neumeyer also explains how a large electronics manufacturer recently contacted his company, First Majestic, regarding the acquisition of silver for their manufacturing processes. This screams of a very, very tight supply of silver in large quantities. Where is metal coming from?

I sat down with Keith Neumeyer, CEO, First Majestic and Chairman, First Mining Finance, to get his take on Duestche Bank admitting to rigging the silver and gold markets and naming both HSBC and Scotia-Mocatta as being involved with the scheme. The important part is Duestche Bank naming other bullion banks as being part of the scheme.

Keith also shares with us how the gold/silver ratio is so far out balance that when it begins to correct that it will be breathtaking in the way it unfolds. Can you imagine a 8:1 gold/silver ratio price? Currently, the ratio is 75:1. Meaning the price of gold is 75 times higher than silver even thought silver is mined at a 10:1 ratio to gold.

Let’s listen to Mr. Neumeyer and allow him to explain the current condition of the market and how the mining production will continue to decline, thereby, putting quality mining operations in the drivers seat for the unfolding next leg of the precious metals bull market.

 


Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.

Deutsche Bank Turns on the Gold-fix Cartel

DB_Frankfurt_ZentraleDeutsche Bank, Germany’s once-respected giant bank, has admitted being a party–together with a cartel of major Wall Street and select other international banks–in deliberately manipulating the price of gold over a period of years. As well, the German bank, in a court settlement with litigants in a US court, has agreed to name the names of other big banks involved in the criminal enterprise. As this drama unfolds in coming weeks and months, the world may well see the price of gold soar to new heights to reflect the true global market demand. This is huge.

The first time I came across evidence that select Wall Street and other major international banks, in cooperation with the Federal Reserve, were deliberately suppressing the world gold price was in the aftermath of the global stock market crash of October, 1987. That was when the Dow Jones stock index lost 23% in one day. John Crudele, an exceptionally persistent financial journalist with theN.Y. Post and John Williams of Shadow Government Statistics and an exceptional economist, informed me at the time of the gold manipulatipon reports. The reason for the fix, which then-Fed chief Alan Greenspan reportedly orchestrated, was to prevent a stampede by panicked investors out of risky stocks and bonds into gold. Had gold profited from the stock panic, it could well have been an early end to the dollar system. It worked then to prevent a gold rise.
http://journal-neo.org/2016/04/19/deutsche-bank-turns-on-the-gold-fix-cartel/

 

Moody’s places Deutsche Bank ratings on review

A spelling mistake in an online bank transfer instruction helped prevent a nearly $1 billion heist last month involving the Bangladesh central bank and the New York Federal Reserve, banking officials said.

Unknown hackers still managed to get away with about $80 million, one of the largest known bank thefts in history.

The hackers breached Bangladesh Bank’s systems and stole its credentials for payment transfers, two senior officials at the bank said. They then bombarded the Federal Reserve Bank of New York with nearly three dozen requests to move money from the Bangladesh Bank’s account there to entities in the Philippines and Sri Lanka, the officials said.

Behind the Facade: America, The Bankrupt Hegemon

bankrupt-americaFantasy and fairy tales can go only so far when it comes to the true condition of anything or anyone. Sooner or later the truth must out. This is very much the case when looking at the true condition of the nation the Chinese call, The Hegemon, the not-anymore-so-United States of America. The official Obama Administration economic statistics have declared to the world for more than six years that the world’s largest paper economy was in a marvelous recovery and that unemployment was a mere 5%. Now, with the most severe collapse of oil prices in 13 years, the last remaining job-creating sector of the economy, the oil and gas industry, is rapidly becoming the domino that threatens to topple a mountain of dicey credits and threaten many banks. Only this time, unlike in 2009, the Federal Reserve is in a real pickle, and the Federal debt has doubled to $18 trillion since the beginning of the financial crisis in 2007.
http://journal-neo.org/2016/03/06/behind-the-facade-america-the-bankrupt-hegemon/

Understanding The Federal Reserve’s Shell Game

The Federal Reserve is a key component of the American Transfer State.Under the guise of “macroeconomic management,” it redistributes vast amounts of wealth on an ongoing basis through inflation. The victims of these transfers are ordinary Americans. The beneficiaries are the government and its elite cronies. It’s all a con, and a cheap one at that. Unfortunately, sometimes the most successful con artists are the ones who keep it simple.

Is This The Biggest Crisis In History?

Tyler Durden's picture

Following on from that, Deutsche notes one ratio they occasionally look at is the ratio of various assets to the price of Gold…

Today we update the Oil/Gold ratio back to 1865 and find that the Gold price has just hit an all time high at around 44 times the price of Oil.

 

 

The previous high of 41 in 1892 has just been exceeded.

 

For perspective, the ratio was at 6.6 in June 2008 and only 12 in May 2014. The long-term average is 15.5. While this says nothing about where the ratio is going in the short-term surely this looks a good trade to exploit over the longer-term for those who care about such things.

However, as we noted recently, it merely predicts a crisis and according to the chart above it is the biggest crisis in history…

The previous “biggest crisis in history” was in 1893 when a serious economic depresion hit America. We just topped that in terms of the gold/oil “crisis” ratio, making us wonder: what crisis is just around the corner, and just how big will it be?

Since China devalued its currency, it’s spent $400 billion trying to save it

A man tries to snatch 100-yuan banknotes inside a glass cage during an event held to celebrate the upcoming Spring Festival, at a park in Hangzhou, Zhejiang province, China, on Jan. 26, 2016.



Global Financial System Risk Is Soaring Worldwide

Holistic Approach to View and Manage Risks

Davos Insight: Will the Fourth Industrial Revolution Drive Global Economies or Eliminate Millions of Jobs?

The merger of man and technology was the main theme at Davos, highlighting how the trend could drive an unprecedented economic cycle laden with opportunities. But is this a good thing for everyone?

 



Cashless Society War Intensifies During Global Epocalypse

By David Haggith, the Great Recession Blog.

cashless society cover of The Economist

 In the fall of 2015, the world descended into an economic apocalypse that will transform the globe into a single cashless society. This bold prediction is based on trends in nations all over the earth as shown in the article below.

As we enter 2016, we are only beginning to see this Epocalypse form through the fog of war. The war I’m talking about is the world war waged furiously by central banks against the Great Recession as the governments they supposedly serve fiddled while their capital burned.

The governments and banks of this world advanced rapidly toward forming cashless societies throughout 2015. The citizens of some countries are already embracing the move. In other countries, like the US, citizens fear the loss of autonomy that would come from giving governments and their designated central banks absolute monetary control.

The Epocalypse that I’ve been describing in this series will overcome that resistance during 2016 and 2017 as it wrecks economic havoc to such a degree that cash hold-outs will be ready for whatever holds the greatest promise of saving them from their collapsed monetary systems, fallen banks, deflated stocks and suffocating debt. One has only to think about how quickly and readily American citizens forfeited their constitutional civil liberties after 9/11 when George Bush and congress decreed that search warrants were not necessary if the government branded you a “terrorist.”

Oil’s whiplash above $30: dead cat bounce or double-bottom base?

 

 

 

 

 

 

The Uncomfortable Truth About The Great Boom And This “Recovery”

Despite such endless financial engineering, sales for the S&P 500 have been declining for the last three quarters. And profits have declined for the first time since the 2009 expansion. Simply put: The recovery is a mirage… It isn’t real… And it isn’t sustainable.

The Global Economic Reset Has Begun

The U.S. is now experiencing the next stage of the great reset. Two pillars were put in place on top of an already existing pillar by the central banks in order to maintain a semblance of stability after the 2008 crash.  This faux stability appears to have been necessary in order to allow time for the conditioning of the masses towards greater acceptance of globalist initiatives, to ensure the debt slavery of future generations through the taxation of government generated long term debts, and to allow for internationalists to safely position their own assets.  The three pillars are now being systematically removed by the same central bankers. Why? They are simply ready to carry on with the next stage of the controlled demolition of the American structure as we know it.

 

 

 

 

Why This Sucker Is Going Down… Again

So how do you grow household wealth by $18 trillion in the face of these dismal real world trends? In a word, with a printing press. But what happened today is that Draghi showed he is out of tricks and Yellen confessed she is out of excuses. Yes, this sucker is going down. And this time all the misguided economics professors turned central bankers in the world will be powerless to reverse the plunge.



This Is Not Your Father’s Market

“We live in a dystopian investment world, whose markets have morphed into an Orwellian backdrop of omnipresent government intervention and manipulation that is increasingly dictated by the quant community — who worship at the altar of prices and price momentum (and are agnostic on values).”




 

Coming of Age: China’s Yuan Joins SDR Basket As IMF Reserve Currency

Christine Lagarde and the IMF Executive Board recently announced their intention to include the Chinese renminbi (RMB) in the Special Drawing Rights’ (SDR) valuation formula.  This would bring the Chinese currency into an exclusive group – alongside the US dollar, the euro, the British pound and the Japanese yen – of 5 global currencies that make up the IMF’s own reserve currency.

 

 

 

 

“Central Banks Are Out Of Dry Powder” Stockman Warns “Another Financial Crisis Is Unavoidable”

This is the final spasm of a dying bull market that has been entirely fueled by central bank money printing. But if you look at the underlying trends both in the domestic and in the global economy and the outlook for earnings,everything that matters is heading south and the real global recessionary forces are just getting started.”

 

 

 

Inside the Money Laundering Scheme That Citi Overlooked for Years

How Citigroup’s Banamex USA unit turned a blind eye on the Mexican border.

 

Global Trade Just Snapped: Container Freight Rates Plummet 70% In 3 Weeks

Spot rates for transporting containers from Asia to Northern Europe have crashed a stunning 70% in the last 3 weeks alone. This almost unprecedented divergence from seasonality has only occurred at this scale once before 2008! 

 

Flash Update

11/14/2015 – 10:05
One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment)…. readmore…

 

 



DRUCKENMILLER WARNS: ‘The chickens will come home to roost’



Bond Market Begins To Panic: Bids For 4-Week Bill Auction Crater, Yield Spikes

Tyler Durden's picture

Less than two weeks ago, when previewing the upcoming debt ceiling battle which is shaping up to be far more contentious than most expect, we said to “keep an eye on T-Bill yields for the turning point when the market decides this situation is becoming serious.”

Things officially turned serious yesterday, when as we reported, T-Bill yields spiked after the latest Jack Lew warning that the Treasury’s emergency measures would be exhausted on November 3, or in less than 2 weeks, leading to a surge in mid-November T- Bill yields

 

But where the “serious” crossed over into “panic” territory, happened moments ago when the US Treasury sold $5 billion in T-Bills.

As expected, after five weeks of 0.000% high yields, today’s yield soared in sympathy with what is happening in the secondary market.

 

But where it became decidedly clear that while stocks continue levitating without a care in the world, the bond market is now convinced that the 2015 debt ceiling fight will be worst than both the 2011 and 2013 iterations, is in the number of bids tendered into the auction.

At just $22.4 billion, this was less than half last week’s $48.3 billion, and about 20% of the last year’s $127 billion averaged tendered bids. This plunge in demand was below even the 2013 year-end debt ceiling fight. It was, in fact, so bad that it was the lowest amount of tendered bids since October of 2006, when central planning was merely a gleam in Ben Bernanke’s eye.

 

The question becomes: what does the suddenly panicking – and revolting – bond market know about the debt ceiling showdown in 2 weeks that equities not only don’t, but obliviously refuse to care about?




Capital Controls Blowback? Bitcoin Surges Back To Pre-China-Currency Wars Levels

At $267, Bitcoin has retraced the entire plunge from China’s initial devaluation entry into the currency wars and the Black Monday dump. It appears, just as we warned,that China’s increasing crackdown on its – until now lax – capital controls has spurred demand for alternate ‘currencies’ that remain out of the control (for now) of governments – like gold… and bitcoin.

 



 

There Will Be Blood

Capitalist Exploits's picture

Submitted by Capitalist Exploits on 10/14/2015 11:59 -0400

By Chris at www.CapitalistExploits.at

As the housing boom of the 2000’s minted new millionaires every second Tuesday. So, too, the shale oil boom minted wealth faster than McDonald’s mints new diabetics.

Estimates by the UND Center for Innovation Foundation in Grand Forks, are that the North Dakota shale oil boom was creating 2,000 millionaires per year. For instance, the average income in Montrail County has more than doubled since the boom started.

Taken direct from Wikipedia:

Despite the Great Recession, the oil boom resulted in enough jobs to provide North Dakota with the lowest unemployment rate in the United States. The boom has given the state of North Dakota, a state with a 2013 population of about 725,000, a billion-dollar budget surplus. North Dakota, which ranked 38th in per capita gross domestic product (GDP) in 2001, rose steadily with the Bakken boom, and now has per capita GDP 29% above the national average.

I wonder how many North Dakotans have any idea the effect low oil prices are going exert on their living standards, freshly elevated house prices, employment stats, and government revenues.

We’re all about to find out. Here is the last piece in our 5-part series by Harris Kupperman exploring what this means for the fracking industry, oil in general, and the one topic nobody is paying much attention to: the petrodollar.

Enjoy!

——————————

Date: 27 September 2015

Subject: There Will Be Blood – Part V

Starting at the end of 2014, I wrote a number of pieces detailing how QE was facilitating the production of certain real assets like oil where the production decision was no longer being tied to profitability. For instance, shale producers could borrow cheaply, produce at a loss and debt investors would simply look the other way because of the attractive yields that were offered on the debt. The overriding theme of these pieces was that the eventual crack-up in the energy sector would precipitate a crisis that was much larger than the great subprime crisis of last decade as waves of shale defaults would serve as the catalyst for investors to stop reaching for yield and once again try to understand what exactly they owned.

Fast forward 9 months from the last piece and most of these shale producers are mere shells of themselves. If you got out of the way—good for you. Amazingly, these companies can still find creative ways to tap the debt markets, stay alive and flood the market with oil. Eventually, most won’t make it and I believe that the ultimate global debt write-off is in the hundreds of billions of dollars—maybe even a trillion depending on which larger players stumble. That doesn’t even include the service companies or the employees who have their own consumer and mortgage debt.

I believe that shale producers are the “sub-prime” of this decade. As they vaporize hundreds of billions in investor capital, thus far, there has been a collective shrug as everyone ignores the obvious – until suddenly it begins to matter. By way of timelines, I think we are now getting to the early summer of 2008 – suddenly the smart people are beginning to realize that something is wrong. Credit spreads are the life-line of the global financial world. They’re screaming danger. I think the equity markets are about to listen.

HY Spreads

High-yield – 10-year spread is blowing out

Then again, a few hundred billion is a rounding error in our QE world. There is a much bigger animal and no one is talking about it yet – the petrodollar.

Roughly defined, petrodollars are the dollars earned by oil exporting countries that are either spent on goods or more often tucked away in central bank war chests or sovereign wealth funds to be invested. I’ve read dozens of research reports on the topic and depending on how its calculated, this flow of capital has averaged between $500 billion and $1 trillion per year for most of the past decade. This is money that has been going into financial assets around the world – mainly in the US. This flow of reinvested capital is now effectively shut off. Since many of these countries are now running huge budget deficits, it seems only natural that if oil stays at these prices, this flow of capital will go in reverse as countries are forced to sell foreign assets to cover these deficits.

Petrodollars

Over the past year, the carnage in the emerging markets has been severe. Barring another dose of QE, I think this carnage is about to come to the more developed world as the petrodollar flow unwinds and two decades of central bank inspired lunacy erupts.

There Will Be Blood

——————————

 



Why Are The IMF, The UN, The BIS And Citibank All Warning That An Economic Crisis Could Be Imminent?

By Michael Snyder, the Economic Collapse Blog.
Question Sign Red - Public DomainThe warnings are getting louder.  Is anybody listening?  For months, I have been documenting on my website how the global financial system is absolutely primed for a crisis, and now some of the most important financial institutions in the entire world are warning about the exact same thing.  For example, this week I was stunned to see that the Telegraph had published an article with the following ominous headline: “$3 trillion corporate credit crunch looms as debtors face day of reckoning, says IMF“.  And actually what we are heading for would more accurately be described as a “credit freeze” or a “credit panic”, but a “credit crunch” will definitely work for now.  The IMF is warning that the “dangerous over-leveraging” that we have been witnessing “threatens to unleash a wave of defaults” all across the globe…



Negative feedback loop leading to a bad equilibrium’



A Flock Of Black Swans

Major depressions do not occur overnight. They go in downward waves, interrupted at intervals by false recovery waves.  But the collapse will continue, unstoppably. Like any house of cards, once it begins to actually fall, no further Band-Aids will stop the inevitable. So, what might that trigger be?



 

A Panicked Brazil Promises Billions In Austerity, Does 180 On Budget After Downgrade

On the heels of a painful S&P downgrade, Brazil now says it plans to enact some BRL26 billion in primary spending cuts for the 2016 budget on the way to achieving in a primary surplus that amounts to 0.7% of GDP.



'Blood & Oil': The oil bust is about to go mainstream



Weekend Reading: View From The Edge

Time will tell who is right. But remember that we live in an era where computer trading dominates the American stock market. The “robots” that are making a lot of trading calls aren’t sitting around pondering China’s economy. They are paying attention to whether stocks fall below key levels. What are those levels? No one knows exactly. But these two metrics are worth watching. If these thresholds are crossed, both computer and human traders will consider it a game-changer point.

 

The god of oil trading thinks everyone is dead wrong about one big thing

 



 

Biggest Short Squeeze Since 2008 Bank Bailout And Epic VIX Rigging Sends Stocks Green For The Week



13069551615_e53c5f8721_b

 

The US dollar started out backed by gold and silver, then replaced to one backed by oil (hence the concept of a reserve currency).  Now that backing is in question since oil purchases can be settled in other currencies.  So then what’s left.  Does is become a currency backed by military force?  How does that work?  In any event, a currency is either purely fiat or backed by something.  I’m trying to figure out the most likely way the lifespan of the dollar ends.

In any event, there can be no question that the “value” of our dollar is on a downhill slide.  Then that means that we’d be better off converting what excess dollars we hold into stuff.  Is that “stuff” precious metals?  Real estate?  Guns and ammo?  All of the above?

I’m a little frustrated because I’m tethered to a sinking ship…

 



 

Global Trade In Freefall: Container Freight Rates From Asia To Europe Crash 60% In Three Weeks

Three weeks ago, “something just snapped.” Now, it is getting worse by the day.

Tyler Durden's picture

This Wasn’t Supposed To Happen: Crashing Inflation Expectations Suggest Imminent Launch Of QE4

The last three times inflation expectations tumbled this low, the Fed was about to launch QE1, QE2, Operation Twist and QE3.

 
Tyler Durden's picture

Economics Is Dead, And It Is Being Killed Again

Economics is dead, and economists killed it. What we have seen over the course of the last eighty years is a systematic dismantling of the contribution of economics to our understanding of the social world. But apparently what is dead can be killed again.

 
Tyler Durden's picture

Debt Is Good: For Funding The Greatest Participation Trophy Ever Created

As the capital markets from Shanghai to New York were melting down in ways hearkening back to the early days of the prior financial crisis – a period of time many would like to forget (or act) as if it never happened – the Nobel Laureate economist Paul Krugman decided it was time once again to weigh in with what will surely be viewed by the so-called “smart crowd” as a brilliant perspective on what ails the world: Not enough debt. He came out blazing with what seems the only bullet in his arsenal as a cure-all for what ever the ailment might be (e.g., debt.) as he argues this view in his latest: Debt Is Good.

 
Tyler Durden's picture

Gulf Markets Melting Down: Saudi Arabia Plunges 7%, Dubai Sold

Following the end of a horrible week for petroleum importers (not to mention shale producers) despite WTI briefly dipping under $40 (wasn’t this supposed to be great news for the US economy?) we have the start of a just as ugly week for the Persian Gulf oil exporters, whose Sunday market open can be described as a continuation of last week’s broad risk carnage, and where Saudi Arabia, until recently the region’s best performing market, is now down 10% for the year and down 30% compared to 12 months ago.

Tyler Durden's picture

Saudi Arabia Faces Another “Very Scary Moment” As Economy, FX Regime Face Crude Reality

Over the weeks, months, and years ahead we’ll begin to understand more about the fallout from the death of the petrodollar and nowhere is it likely to be more apparent than in Saudi Arabia where widening fiscal and current account deficits have forced the Saudis to tap the bond market to mitigate the FX drawdown that’s fueling speculation about the viability of the dollar peg. As Bloomberg reports, the current situation mirrors a “very scary moment” in Saudi Arabia’s history.

Tyler Durden's picture

Why It Really All Comes Down To The Death Of The Petrodollar

Last week, in the global currency war’s latest escalation, Kazakhstan instituted a free float for the tenge causing the currency to immediately plunge by some 25%. The rationale behind the move was clear enough. What might not be as clear is howrecent events in developing economy FX markets stem from a seismic shift we began discussing late last year – namely, the death of the petrodollar system which has served to underwrite decades of dollar dominance and was, until recently, a fixture of the post-war global economic order.

No Greatly Anticipated RRR Cut From China, Just More Jawboning: Will It Be Enough

In the aftermath of China’s worst manufacturing PMI since the financial crisis, which in turn sent the Shanghai Composite crashing to the “hard floor” level of 3500, below which the PBOC and Beijing officially are seen as having lost control, virtually every China expert and strategist rushed to defend China’s policymakers (and its stock market) with predictions that an RRR cut as large as 100 bps is imminent, and would take place as soon as this weekend, a much-needed move to calm nerves that China is in control. it did not.

Carnage: Worst Week For Stocks In 4 Years, VIX Soars Most Ever

The 5 most intense risks looming over the global economy right now

 

 

 

 

 

 

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