The Great Rig of the Last Five Years is Ending
Submitted by Phoenix Capital Research on 10/16/2014
Since 2012, when Europe was about to collapse, we’ve been told that “everything was fixed.” Everyone from finance ministers to the President of the US stated that we were in recovery and the worst was behind us.
Now, we find out that:
1) Europe is completely busted. The political class over there lied to the people, and even circumvented Democracy to keep the fraud in place. It’s telling that nationalism is on the rise there again. If your vote no longer counts… and the folks in power don’t give a flying turnip about your well being, things tend to get ugly fast.
European Financials have completely broken their trendline from the 2012 bottom:
France’s economy is imploding… gee who would have thought that socialism wouldn’t work when there’s no money to tax away anymore?
Ditto for Spain… which is now beginning the process of breaking into multiple countries.
And even Greece, which has been “saved” FOUR TIMES is collapsing again. Time to save it again!
2) In the US, we now know for a fact that all of the “data” showing us in recovery was in fact fictitious. This was a recovery “on paper” only.
Real unemployment is over 12%, nearly half of all US households are on some form of Government assistance, and GDP growth should be included in great works of fiction along with Moby Dick and The Scarlet Letter. Nothing is what it seems anymore. The great rig is ending…
This is all only the beginning. When the smoke clears, stocks could be 30% lower than where they are now, if not more.
The great rig of the last five years is ending. Are you prepared?
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“Now that Putin has turned away from the west and toward the east, China is drawing maximum profit from Russian necessity,” said Masha Lipman, an independent political analyst in Moscow who co-authored a study on Putin with former U.S. Ambassador Michael McFaul.
China is wasting no time filling the void created by the closing of U.S. and European debt markets to Russia’s largest borrowers. A Chinese delegation led by Premier Li Keqiang signed a package of deals today in Moscow in areas including energy and finance. Among the accords was a three-year 150 billion yuan local-currency swap deal, a double-tax treaty, satellite-navigation and high-speed rail cooperation and an agreement on implementing a May natural gas contract.
As we look back over the past hundred years, America has experienced the Great Depression, multiple recessions, stagflation and the loss of 99% of the dollar?s purchasing power – none of it would have been possible without the Federal Reserve, creating bubbles and bursting them, enslaving us with debt and destroying our purchasing power through inflation Yes, its been a wonderful lie — for the banksters And many Americans are left like George Bailey. Facing the collapse of their dreams and financial ruin There are striking parallels in Frank Capras Its a Wonderful Life to lies and tricks of the modern banker elite. Human nature doesn?t change and the greedy elite of 1913 and 2013 look much like ….
I think this is a time where people will look back on us and see it as a period of practically central bank worship. The central bankers – Draghi, Yellen, Bernanke – have become almost celebrities in America. People have invested unreasonable hopes in what these central banks can know, and what they can do. I think that, sooner or later, the investing public will become disillusioned of these ideas…. I dare say that stock prices will not continue to rise uninterrupted at the same pace. That’s not a very interesting prediction, but the stock market is certainly a cyclical thing. I think it’s fair to observe that today’s ultra-low interest rates flatter stock market valuations. Stock prices are partly valued based on a discounted flow of dividend income. To the extent that the discount rate you use to value that stream of dividend income, which depends on interest rates, is artificially low, stock prices are artificially high. I think that the burden of proof is on anyone who would assert that we are in a new age of persistently and steadily rising stock prices.
Submitted by Tyler Durden on 09/27/2014 – 11:52
In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia’s coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico. The announcement was made by Igor Sechin, Rosneft’s chief executive officer, who spent two days sailing on a Russian research ship to the drilling rig where the find was unveiled today.
Oct. 6 (Bloomberg) – IG Market Strategist Evan Lucas discusses falling gold prices and what’s driving the drop with Bloomberg’s John Dawson on “On The Move.” (Source: Bloomberg)
Submitted on 09/26/2014 – 19:06Self-evidently, all the major economies are saturated with debt. Accordingly, central bank balance sheet expansion has lost its Keynesian magic entirely. Now the great sea of freshly minted liquidity simply fuels the carry trades as gamblers everywhere load up with any asset that generates a yield or short-run capital gain, and fund these bloated positions with cheap options and repo style finance. But here’s the obvious thing. Central banks can’t normalize interest rates – that is, allow the money markets to rise off the zero-bound – without triggering a violent unwind of the carry trades on which today’s massive asset inflation is built. On the other hand, they can no longer stimulate GDP growth, either, because the credit expansion channel to the main street economy of households and business is blocked by the reality of peak debt. Yes, the era of Keynesian money printing is over and done. But don’t wait for the small lady at the Fed to sing, eithe
Alibaba Group Holding Ltd., the e-commerce company started in 1999 with $60,000cobbled together by Jack Ma, cemented its status as a symbol of China’s economic emergence by raising $21.8 billion in a U.S. initial public offering. The company and shareholders including Yahoo! Inc. (YHOO) sold 320.1 million shares for $68 each, according to a…