This has, in fact, now become the fastest plunge of the Dow since the Great Depression. It is the first time ever that the S&P has plunged into a full correction from a market peak in six days.
All in a day’s fun that would not be possible if market’s delirious bulls, fattened by the Fed to the tune of half a trillion dollars over the last four months, had not stampeded market prices to the summit of insanity. This they did in a time when the ground underneath them is giving no foundational support! (Corporate revenue recession since last spring, corporate earnings recession for half a year (boosted only visually by buybacks), manufacturing recession for half a year, services recession just starting in the fourth quarter, and slouching GDP growth quarter after quarter, just to name a few of the big trends.)
Lesson to be learned about seeing obvious reality around you or go bulls? Full Story
By: Richard Mills, Ahead of the herd - 27 February, 2020
Whether it’s a Democrat or a Republican installed in the White House this November, you can count on fiscal discipline going out the window. Neither the incumbent, President Donald J. Trump, nor the leading Democratic contender to replace him, Bernie Sanders, appears to give a hoot about shoveling more onto the enormous pile of debt that a few months ago shot past $23 trillion.
Why does this matter? Because debt impedes economic growth . And just like a business, if a country isn’t growing, it’s dying. Full Story
Having traded as high as $1691 in COMEX April gold and $18.92 in March silver on Monday on near-record volume and closing not far from those levels as of the 1:30 PM EST settlements, prices sold off sharply in the always thinly-traded afterhours. As expected, the all too common occurrence drew complaints of market rigging. To be sure, the sudden selloff was deeply suspicious, but the suspected culprits were not surprising when one examines the known data. Those long had nothing to gain by driving prices sharply lower when trading liquidity was at its lowest. The only entities that stood to gain by the sudden selloff were those most short – aka the 7 biggest short sellers. Full Story
Call us anything you want, just not late for dinner, since, politically incorrect as GATA is, we're glad of almost any attention. Indeed, GATA is honored to be mentioned in the same breath as Zero Hedge, whose audience is a million times larger than ours, just as we're delighted that the head of investment research at a Swiss currency trading house apparently has taken some notice of our work.
But GATA always cordially invites those who call us "conspiratorial" to examine the documentation behind our work. We present it assiduously, even tediously.. Full Story
Much remains concerning the corona-virus, its potential planning, or else its exploited event. The discussion and debate, along with investigations and accusations, will remain for a long time. This is an historical event, like 9/11, certain to change the global landscape in a profound manner. The elite agenda can never be dismissed, with uncertain participants, whether voluntary or coerced. Vengeance by China might be to finally wreck the King Dollar and to push Gold onto the financial high throne. The global transition with paradigm shift was either planned with the bio-attack, or else will occur in its aftermath. Full Story
So what's the point of this post? Understand this:
Yes, gold prices have surged higher in 2020 and some of this is due to a fear-based trade over the growing concerns of a coronavirus global pandemic. But prices were already headed higher before the emergence of the virus, and the interest rate driver of this move has only accelerated over the past few weeks.
Just as in 2019, Powell's Fed has been painted into a corner. They will soon act to cut rates and add liquidity, and this will help to provide for a consistent bid for gold in all its forms...which will lead to consistently higher prices as 2020 unfolds. Full Story
By: Gary Christenson, The Deviant Investor - 26 February, 2020
“It’s time to sell. We are totally out of stocks.” Interest rates will continue to decline.
“Gold will go to $2,500 per ounce” in the next few years.
“I made the calculation that if the system breaks down and we have to go back to the gold standard, then gold would be around $60,000 per ounce. Who knows what’s going to happen.” Full Story
By: Dave Kranzler, Mining Stock Journal - 25 February, 2020
Two economic reports were released which demonstrate that the money printing is not helping the economy. In the fourth quarter of 2019, U.S. household debt pushed over $14 trillion, reaching an all-time record high. This was fueled by a surge in mortgage and credit card debt. Much of the the new mortgage debt consisted of cash out” refis, which helped exacerbate the last housing bubble/collapse.
Second, the U.S. Treasury announced that the Government spending deficit for January was $32.6 billion. This was considerably worse than the $11.5 billion deficit expected... Full Story
Is gold manipulated? Why, of course. Policy makers and their agents stand ready 24/7 to shall we say influence the financial markets. Does gold get the shit end of the stick while stocks get the err, golden end? Why, of course. Deal with it, and don’t cry about it. One thing I have noticed over the years is that reversals in the gold price like yesterday, seemingly out of thin air, come more often in bull markets than bear markets. It’s a fact of life in a gold bull market. Full Story
It is the senseless things of this world that sometimes knock sense into the high and mighty whose hubris causes them to believe they cannot fall. In this case, the tiny COVID-19 virus (coronavirus) is bringing down a global house of cards long perched to fall — locks, stocks, and barrels of oil.
Stock investors thought the over-Fed market’s bull run would prove immortal, but all the overripe market needed was for a fat, black swan to drop down on the market’s head and knock some sense into it. Economic damage worldwide, however, is far from limited to stocks. Some of it seems almost silly or bizarre, but such is the case when the entire global economy is already in ill health, having survived on Fedmed for a decade. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 25 February, 2020
We know that the US stock market is a bubble and all bubbles pop. It's only a matter of when. We also know that much has been done by the Trump administration to fray existing alliances and to inflame tensions with trading partners-turned-adversaries, namely China, the European Union and even its two NAFTA “amigos”, Canada and Mexico. China, Russia, Turkey and others, are already moving away from pricing trade in US dollars and buying US debt through treasury purchases. Central Banks have been stocking up on gold.
Will the rest of the world follow and punt the US$ as the world’s reserve currency? We at AOTH think so and we await gold's coming Minsky Moment. Full Story
Somebody seems to have dumped a lot of gold derivatives on the market this afternoon, and Zero Hedge estimates it at $3 billion worth and attributes it to the Bank for International Settlements:
There may not yet be any public evidence tying this particular attack to the BIS, but whoever did it plainly meant to drive the price down rather than to take profits on a long position, since you don't take profits by driving the price down all at once but by selling gradually enough not to crash the price. Full Story
And it’s not just gold. The Fed is already hinting that more money printing is coming. Powell suggested at his semi-annual Congressional testimony that QE would be used in the next recession. A couple other Fed officials this week confirmed that the FOMC is preparing to crank up the printing press even more than it has been running since mid-September.
But why does the Fed feel compelled to warn us that more money printing/currency devaluation is coming if, a Powell told Congress, “the economy is in a good place?” Full Story
Who says there is no recession anywhere in sight? It depends on where you are looking. In short, manufacturing remains in recession; corporate profits remain in recession; freight remains deep in recession; Carmageddon remains in recession; and the Retail Apocalypse remains a recession for brick-and-mortar stores, while employment — the last holdout — is now also turning downward.
The manufacturing recession that everyone acknowledges as having begun last summer continues... Full Story
We know that they are conspiring to do whatever it takes to get inflation up, because without inflation its evil (to Keynesian economists and Federal Reserve officials, anyway) opposite, deflation would take hold and take things too far. The little whirlpool is circling the drain but there is still water * in the pool.
Here are some pictures of failing inflation, despite a still brisk economy and economic data like the big bounce in the Philly Fed and it’s respondents’ expectations of higher prices to be charged going forward. Full Story
The founding team at BitMEX consists of best-of-class professionals in finance, web development, and high-frequency algorithmic trading.
In financial parlance, ladies and gentlemen, these guys earned their stripes in the equivalent of the Gambino Crime Family. Their exchange should be boycotted and these thugs should be sent with their bags packed – back to the filthy wet works wonderland they came from.
By: Mike Gleason and Michael Rivero - 23 February, 2020
Gold and silver markets are advancing strongly this week.
Perhaps they got a bit of a safe-haven boost from the fear generated by Wednesday’s Democrat presidential debate. Mike Bloomberg’s shaky performance made Bernie Sanders and his brand of socialism the de facto winner.
The rising threat of socialism as the dominant ideology of a major political party puts the stock market on shakier ground. Full Story
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