Savings Guarantee? U.N. Warns Next Financial Crisis Imminent

Savings Guarantee? U.N. Warns Next Financial Crisis Seems Imminent

“There remains a risk of deflationary spirals in which capital flight, currency devaluations and collapsing asset prices would stymie growth and shrink government revenues. As capital begins to flow out, there is now a real danger of entering a third phase of the financial crisis …”

UN Conference on Trade and Development’s Annual Report (UNCTAD), September 22, 2016


image (5)Image from “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay – Wikipedia

This hard hitting critique in the UN Conference on Trade and Development’s Annual Report, released this week, is suggesting that the ‘third leg of the world’s intractable depression is yet to come.’

“Alarm bells have been ringing over the explosion of corporate debt levels in emerging economies, which now exceed $25 trillion. Damaging deflationary spirals cannot be ruled out,” said the annual report of the UN Conference on Trade and Development (UNCTAD).

But what does these grand, scary predictions really mean for us? Bankruptcy? Economic collapse? Apocalypse now? End of the world as we know it? Read full story…


Lifelong Democrat and Former RFK Speechwriter Comes Out For Trump

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We haven’t seen too many hardcore Democrats come out in support of Trump. This should be expected since that would be a far more genuine and significant gesture than neocon Republicans rallying around the neocon candidate. As such, I find it very interesting that in the last 24 hours I’ve come across two separate opinion pieces by lifelong players in the Democratic Party who now support Trump.

Read more here.

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[KR970] Keiser Report: Hippies vs Hipsters

We warn hipsters, “Don’t let the hippie man keep you down.” As the intergenerational baton is passed to a bigger voting bloc called ‘Millennial’, we look at the economic consequences to all the Ponzi and pyramid schemes which worked well for the Boomers. Max interviews Wolf Richter about the real numbers behind US income data and Germany’s export plunge. They also discuss whether or not Deutsche Bank can survive these days of major fines.


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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