Why the Coming Wave of Defaults Will Be Devastating

In an economy based on borrowing, i.e. credit a.k.a. debt, loan defaults and deleveraging (reducing leverage and debt loads) matter. Consider this chart of total credit in the U.S. Note that the relatively tiny decline in total credit in 2008 caused by subprime mortgage defaults (a.k.a. deleveraging) very nearly collapsed not just the U.S. financial system but the entire global financial system.

Every credit boom is followed by a credit bust, as uncreditworthy borrowers and highly leveraged speculators inevitably default.

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Yellen’s Oversight of the Fed Is Not Producing Monetary Policy but Disbelief

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The real product of the Fed these days is not monetary policy but disbelief. People can’t believe the amount of speculation, conversation and outright complexity that results in… nothing. Read more ›


Gold Up 1.5%, Silver Surges 3% – Yellen Stays Ultra Loose At 0.25%

Gold was up 1.5% and silver surged 3.1% yesterday after Janet Yellen again failed to raise rates from record lows at 0.25%. The Fed maintained ultra loose monetary policies which are again creating stock and bond market bubbles in the U.S. and other countries.

yellen_goldFed’s Yellen To Engage In QE Again?

Global stocks and commodities also rose on continuing relief that the Fed continues ZIRP and remains ultra loose along with the BoJ, BOE and ECB whose policies are even looser. The BoJ also maintained ultra loose monetary policies at negative 0.1 percent rate and said it would continue buying government bonds at the current pace for the time being.

Spot gold prices hit a two-week high of $1,336.8 an ounce after the Fed said that it would keep rates at record lows. Silver rose to as high as $19.86 and both precious metals have consolidated on those gains in Asian and European trading.

Euro gold rose to €1,194/oz and sterling gold to £1,024/oz. Read full story…


Wall Street Goes “All In” for Hillary Clinton

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Wall Street, America’s most despised industry, is putting all of its eggs in the Hillary Clinton basket. I must say, I’m actually pretty shocked at the extent to which the industry’s heavyweights are backing her. There’s really only one explanation — they know she’s a sure thing.

Read the rest here.

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The Three Stages of Empire

Though Edward Luttwak’s The Grand Strategy of the Roman Empire: From the First Century CE to the Third is not specifically on the rise and fall of empires, it does sketch out the three stages of Empire.

Here is the current context of the discussion of Imperial lifecycles: the U.S. defense budget is roughly the same size as the rest of the world’s defense spending combined:

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Trump and Clinton Are “Positive For Gold” – $1,900/oz by End of Year

Trump or Clinton are “positive for gold” and prices could rise to between $1,700 and $1,900 per ounce by year end according to Canadian gold mining magnate Rob McEwen.

Gold “is a currency that doesn’t have a liability attached to it,” McEwen said Tuesday in an interview with Bloomberg at a gold conference in Colorado Springs.

trump clinton goldRobert McEwen Photographer: Victor J. Blue/Bloomberg

“A store of value that has gone for millennia. And the big argument against gold used to be it costs you money to store it. Right now, it’s costing you money to store your cash.” Read full story…


[KR969] Keiser Report: Privilege of Unfairness for Bankers

We discuss the lessons from Calvin of Calvin & Hobbes fame on the exorbitant privilege of unfairness for bankers. We look at the game theory behind Deutsche Bank’s too big to fail, too broke to punish sweet spot as it attempts to ‘negotiate’ with the U.S. Department of Justice. In the second half, Max interviews precious metals expert, Ned Naylor-Leyland of Old Mutual Global Investors about gold – the original denominator – and about return-free risk in the negative yielding bond markets.


More Troubling Evidence That Hillary Clinton Will Start WW3 – Part 2

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Here’s the most concerning part…

Putin, a former KGB agent, “doesn’t have a soul,” Clinton quipped on the eve of the 2008 New Hampshire presidential primary, riffing off of President George W. Bush’s comment seven years earlier that he had looked into Putin’s eyes and seen his soul.

The Russian leader retorted: “At a minimum, a head of state should have a head.”

Is this the sort of starting point you want from a new U.S. President? There’s a reason so many genuine progressives and liberals can’t stomach Hillary Clinton and refuse to vote for her. Sure, there’s the rampant embrace of cronyism and incessant oligarch coddling, but there’s also her penchant for bloodthirsty militarism.

Read more here.

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Credit Card Companies Are Keeping Consumers Hooked with Irresistible Perks and Bonuses

Credit Card Companies Are Keeping Consumers Hooked

Consumers are becoming more financially savvy, all thanks to the explosion of personal finance blogs that cater to different categories of people. One of the most profound wisdom nuggets in the personal finance industry is the need for people to reduce their dependency on credit cards in order to cut down credit card debts.

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The ZIRP/NIRP Gods and their PhD Priesthood Have Failed

Let’s start with a simple chart of the Fed Funds Rate, which the Federal Reserve has pinned near zero for years. This Zero Rate Interest Policy (ZIRP) is the god the PhD economists in the Fed and other central banks worship as the supreme force in the Universe, along with its even more severe sibling god, NIRP (negative interest rate policy), which demands that banks and depositors must pay for the privilege of holding cash.

Precisely what have ZIRP and NIRP fixed in the global economy? The short answer is “nothing.” Instead of fixing what’s broken, ZIRP and NIRP have pushed a broken system further along the path of self-destruction.

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Gold ‘Bugs’ Rejoice – Central Banks Think You’re On To Something

Central Banks Gold Diversification Ongoing – “Sensible Precaution”

by John Stepek, Editor of Money Week

Central banks have got the economy and markets covered.

They know what they’re doing. Their theories are backed up by decades of academic research and expert advice.

160920-gold-vaults-b-1024x576Queen Elizabeth inspecting gold bars in Bank of England. Source: Money Week

Expert advice, as we all know, is completely apolitical, changes rarely, and never, ever does a complete U-turn, like – I don’t know – telling us all to start eating butter after years of telling us not to, or something crazy like that.

So why worry? I mean, what kind of deluded neurotic doom-monger would keep hanging onto gold (as insurance, of all things!) in their portfolio with people of this calibre in charge?

Well, I hate to break this to you, but…

Guess who’s buying lots of gold?

Central banks are piling into gold. They have been ever since the financial crisis blew up in 2008.

In fact, says a new report from the OMFIF (Official Monetary and Financial Institutions Forum) research group, central banks have been buying gold at a rate of 350 tonnes a year for the last eight years. That takes us back to the sorts of levels we saw in the pre-1970 era.

OMFIF has looked at central bank behaviour and gold buying going back over more than a century (back to 1871, in fact). It’s broken it down into seven “ages of gold’. There’s some interesting stuff in there, but I’ll only go back as far as post-World War II this morning, as that’s the most relevant to today’s topic.

So the fourth age of gold – 1945 to 1973 – covers the Bretton Woods era, during which gold reserves were rising, notes David Marsh of OMFIF, “with European countries and Japan amassing sizeable new post-war holdings as central banks exchanged surplus dollars for gold from the US Treasury”.

Indeed, between 1950 and 1965, central banks and treasuries bought up more than 7,000 tonnes of gold. Read full story…


UPDATE: Synereo raises $2.3 Million to Fix the Internet

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The Internet is not so Free

Today the internet is the most critical tool that people use to communicate with.  All of us have been doing it with the help of familiar middlemen, or should I say companies like Gmail, Slack, Dropbox, Hipchat and a million other web based programs or apps that are used daily.

Internet companies have been providing these so called “FREE” services in exchange for our privacy. They store our personal data and use it to generate PROFIT. Internet users that have been consuming, creating and sharing content had no other choice than to give up their privacy and go through these intermediaries. Until now.

Enter Synereo

Inspired by Bitcoin’s Blockchain, the Synereo platform is the only platform that allows any application to exist entirely without a centralized server. Synereo’s mission is to build a truly free Internet, one that cannot be censored, taken down or corrupted. Billed as a next-gen blockchain, with speeds and levels of trust far greater than anything that exists today, Synereo hopes to play a huge role in the emerging decentralized economy.

Synereo’s smart contracting language, Rholang, with its formal semantics and strong behavioral types allows developers to write less code with more security. As more Synereo Decentralized Apps (dApps) are built and the ecosystem evolves we will start to see many of our favorite sites recreated on the Synereo platform.

Synereo reaching Critical Mass with OpenLedger

To help us get to a more free and fair internet sooner, Synereo has an accompanying cryptocurrency called AMP, it compensates users for contributing storage, computation, and bandwidth to the network; fueling the underlying decentralized servers.

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The Synereo platform is incentivizing participation through AMP rewards, and OpenLedger was one of the first platforms to rally their users with an innovative content machine called the Obits 500 Bloggers’ Club. As content gets produced for the OpenLedger startup ecosystem, the material will start to be shared on social media.  This will accelerate Synereo’s growth as it is looking to add as many users as possible.

Integrating AMP rewards for promoting OpenLedger projects will yield huge scales of economy when it comes to cross promotion as a part of community activities.  If users are rewarded AMPs for popular social media posts, the emphasis will be placed on producing quality content.

Investing in Synereo

Synereo’s fundraising campaign is listed on BnkToTheFuture.com, the online investment platform for financial innovation and technology investment opportunities. Qualifying investors can invest in, and receive shares of, Synereo LTD. BnkToTheFuture allows you to invest in Synereo LTD via Credit Card, Bank Transfer, Bitcoin, and a variety of Altcoins.

Synereo Fundraising

Additional Bonus for Synereo Participants

As a special bonus to all readers throughout the crowdfunding campaign, OpenLedger offers 10 OBITS in exchange to all signups using the following link. You can claim them by sending 1 AMP* to the account on OpenLedger named: synereo.

*on OpenLedger all deposited AMPs are showing on the platform as OPEN.AMP