There are three certainties in life: death, taxes and the BIS – the central banks’ central bank – warning about excesses from monetary policy (the most recent amusing example of this was last October when as we wrote, “Fed Announces QE4 One Day After BIS Warns QE Has Broken The Market”). Actually, to this list of 3 certainties we can add one more: central banks roundly ignoring the warnings from the central bank mothership. Read More.
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Category: Bear Market News
Gerald Celente, the publisher and a top trends researcher, has one very ominous trend coming for the global economy. Celente predicts, “One of our top trends is the ‘Greatest Depression.’ Lives have been destroyed around the world. This is unprecedented. There is something bigger than politics about what is going on.
11/25/20 – Tyler Durden: British Economy Shrinks By Most In 300 Years Thanks To COVID, Chancellor Warns
Just days after UK Prime MInister Boris Johnson confirmed that the 2nd English COVID-19 lockdown would soon come to an end (as England is expected to revert back to the tiered system of restrictions that preceded it), Chancellor Rishi Sunak on Wednesday shared some grim numbers about the state of the British economy with Parliament. Read More.
We’re approaching all-out market mania with optimism about a COVID vaccine and the ensuing economic renaissance that many seem convinced is right around the corner. On Tuesday (Nov. 24) the Dow Jones closed about 30,000 for the first time. Read More.
A lot of people are turning more bullish on the economy with the possibility of an effective COVID-19 vaccine. But in his podcast, Peter Schiff argued that coronavirus isn’t the problem. COVID-19 isn’t making the economy sick. All of the Federal Reserve stimulus and money printing is making the economy ill. And coronavirus vaccine isn’t going to make it well. Read More.
Let’s start with the basics. There’s no evidence that lockdowns work to stop the spread of coronavirus. None. This is not guesswork. After ten months of the pandemic, we have data from more than twenty major countries around the world that have tried lockdowns in various forms. The lockdowns range from extreme (as happened in Victoria in Australia) to moderate (Sweden) to non-existent (South Dakota). Read More.
Barely 100 years ago at the start of the 20th century, people were able to exchange dollars for gold at their local bank. While gold was too hard to trade between people, banking institutions held gold and gave people cash for it. This was during what was known as the gold standard. Each sovereign currency’s value was determined relative to a fixed amount of gold. However, in the decades ahead, that standard quickly changed. Read More.
What is fiat money and what does it do? This is essential to understand since today’s worldwide unbacked paper, or “fiat,” money regime is an economically and socially destructive scheme—with far-reaching and seriously harmful consequences. There is an answer, though, and this lies in ending the money production monopoly of states. Read More.
Stocks continue to surge upward thanks to optimism about a coronavirus vaccine. Of course, stocks have been on a bull run ever since their big March drop at the beginning of the pandemic. This led Peter Schiff asks a poignant question during his podcast: if COVID-19 didn’t hurt the stock market, why should a vaccine help? Read More.
11/15/20 – Tyler Durden: In Striking Reversal, One Bank Warns That 2021 Could See The “Biggest Fiscal Contraction In History”
Echoing the skepticism voiced on Friday by BofA CIO Michael Hartnett who bucked the Wall Street trend of optimism, and said to “sell the vaccine”, another BofA strategist, Jared Woodard, writes in the bank’s latest Research Investment Committee note that a confirmed Biden presidency & GOP-led Senate would imply modest growth and corporate profits, maximum QE, and mediocre returns to risky assets, quite contrary to the euphoria gripping Wall Street which is now projecting the S&P rising to (or above) 4,500 by 2022. Read More.
There has been a rising concern as of late about surging inflation as the Government injects more stimulus into the economy. While it seems logical, the reality will be quite different as weak economic growth rates force the Fed to monetize the entirety of future debt issuances. Read More.
Global stocks suffered their worst week since March as it appears the constant liquidity pukage is losing its impact… Read More.
US stock market has worst week since March. Wall Street bought on the rumor of a Biden win; now selling before it becomes a fact. Selling will continue even after he wins. Read More.
Seeing that the world is buried under an unprecedented mountain of debt that is requiring more and more central planner intervention to keep from imploding on itself, Jim says history is clear on what happens next.
It seems that only 0.1% of the time during the last 70 years has the S&P 500 traded at a higher forward PE (price-to-earnings) multiple than it does today. That’s equal to 4 weeks out of the 3,640 weeks since 1950. In a world faced by COVID lockdowns, staggering amounts of debt, central bank money-pumping extremes, and outright fiscal insanity in Washington, why is the present moment more propitious for the valuation of corporate earnings than during 99.9% of the time since the Korean War? Of course, it is not. Not remotely so. Read More.
Get ready for the biggest collapse in the history of mankind. It will be devastating and reach all parts of society, economic, financial, political & social. But wait, it won’t happen just yet. Because before that the world will experience a LIFTOFF in markets of gigantic proportions. This will be the grand finale of this financial era. It will involve inflationary liquidity injections of proportions never seen before in history and lead to a massive explosion in many asset markets. Read More.
We’ve been saying for months that the stock market has completely disconnected from economic reality. The markets have hit record highs despite the economic chaos caused by the government response to COVID-19. As Peter Schiff put it in a podcast back in May, the markets are on a Fed-induced sugar high. Read More.
Financial writer John Rubino says expect mass layoffs of city and state workers as deficits explode and tax income plunges.
The belief that central banks printing currency can “buy/fix” everything that’s broken, lost or scarce is the ultimate in denial, fantasy and magical thinking. Let’s revisit the pandemic projection chart I prepared on February 2, 2020, nine days after authorities publicly acknowledged the Covid virus outbreak in China. Wave 2 shown on the chart is now underway with a vengeance and next up is Global Depression. Read More.
US stocks are behaving amazingly well given the political and economic near-chaos of the past few months. This is probably the first recession that inflated rather than popped financial asset bubbles. Read More.
China has now displaced the U.S. to become the largest economy in the world. Measured by the more refined yardstick that both the IMF and CIA now judge to be the single best metric for comparing national economies, the IMF Report shows that China’s economy is one-sixth larger than America’s ($24.2 trillion versus the U.S.’s $20.8 trillion). Why can’t we admit reality? What does this mean? Read More.
10/16/20 – Pam Martens: Stock Mutual Funds Have Had Net Outflows for 25 Weeks, Bringing Total to $388.7 Billion — a Record
Refinitiv Lipper, which has been tracking mutual fund flows for the past 18 years, reports that for the week ended Wednesday, October 14, equity (stock) mutual funds marked their 25th week of net negative outflows, losing -$8.6 billion for the week. Year-to-date, that brings their net outflows to -$388.7 billion. Refinitiv Lipper notes that if that figure stands, it will be the “largest annual net outflows ever. Read More.
It’s been months since the US started to reopen after the government-imposed coronavirus shutdowns and yet hundreds of thousands of Americans continue to file for unemployment every week. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey takes a close look at the labor market and concludes that a lot of these jobs are never coming back.