Don’t be surprised by the great evil unleashed
You are witnessing a defining moment in world history. That will shape a very ugly future for mankind. Obama’s intentional premature withdrawal for the middle east created a vacuum. Russia is rushing in to fill the bloody void. And there will be hell to pay. Russia has opened its first new military base outside the old Soviet Union in the Middle East.
Russia now has a formidable air base and troop presence in Syria. This now gives Russia the most modern air force in the Middle East. Soon to be the largest. Russia has sent its crack special troops into Syria to back up President Bashar al-Assad’s bid to wipe out his opposition.
Vladimir Putin’s feared blood thirsty special forces Spetsnaz unit and a covert para battalion snuck into the war-torn country and are preparing for an all-out assault on rebels fighting the regime – including moderate units such as the western-backed CIA supplied Free Syrian Army.
A military source said: “Putin’s marines are there to guard the airbases they are using against sabotage by rebels. But Spetsnaz and air-assault troops are not there to provide security to static objects, they are extremely aggressive and highly trained. They are there to mop up after air strikes, call in air strikes, go on extremely covert missions against rebels and ultimately wipe them out.”
Putin is bombing everyone in sight with not seen before in this conflict, bunker buster bombs. Russian jets obliterated nine ISIS outposts in just 24 hours using bunker-busting bombs. See picture below:
There will be hell to pay. Russia wants to sweep up the west of Syria, taking Raqqa and all the oil and gas resources around Palmyra. This is fast becoming a race to Raqqa in order to secure the oil fields they need to cleanse the region of insurgents, and obliterate the ISIS capital. Russia is targeting not just ISIS but moderate freedom fighters.
Assad is just another Middle East dictator. He is slaughtering his people wholesale. He was losing his country. The tide of battle has turned the other way.
Russia’s involvement in Syria means that the Axis of power in the Middle East is Russia, Syria and Iran. This is something the US, under a real leader, would never let happen. Iraq is toast… They will be little more than an Iranian client state.
Russia is targeting the northern oil field area of Iraq and Syria held by ISIS for now. The idea is to bring that oil to market in ever grater amounts for Assad. And starve ISIS of its revenue. Ironically this means that even more middle eastern oil will be coming to market. As usual, exactly the opposite of Wall Street spin.
Not now but in the next 18 to 24 months, after Iran re-arms, they will attack the gulf states oil fields. Then oil will soar. Until then, this is spike in oil is little more than a rally back that will be doomed. I want to be clear here.
I expect oil, over the next 5 to 6 months, to have a slight upward basis. The next big plunge in oil will come in the early spring. Do not be fooled. More and more oil each and every day is coming to market.
Remember, US sellers of oil (especially the frackers) are still hedged into the late spring. The desperate bankers are pushing them HARD to pump and dump as much oil as possible. The next round of bankruptcies will come in about 5 months when the oil industry comes off their hedge positions.
This will happen at the exact time that Iranian oil comes to market. We are talking a major price decline in oil. The perfect over-production storm is brewing. Be ready. Believe it or not, Russia entering the fray for now and the near future will bring stability to the region. This will ensure even more oil comes to market.
Don’t let them fool you. Insiders, start brewing the green tea, I have prepared a tape for you on all of these developments – Click here.
Stock Market Flame Out Coming
Government shut down now very likely. This could be a trigger for a major stock market wipe out. Look, we have been looking for the trigger for a flame out in the stock market. I have prepared a very special tape. The market is about to experience what could be another game changer…
7 Years of Zero Interest Rates With No End in Sight
Trapped like a caged Lion, there is little the FED can do. Contrary to popular misleading spin, it’s not inflation that has got the FED in a quandary. It’s the global deflation that has central bankers shitting bricks. This knowledge is worth millions to you. Let me explain! The Fed cannot raise interest rates. They are in a liquidity trap caused by the global deflation. Their statement shows what a dangerous game they are playing.
The global Quantum easing, that they embarked upon 7 years ago as a temporary measure, has become endless easing. Their statement reveals that they are clueless in Cleveland. The FED has no idea what to do. This knowledge is life changing and reaffirms our constant warning about the deflationary spiral the world has entered.
The world is about to enter a global depression. You must understand that Interest rates are going to go beyond 0 (zero) and to double digit negative. You have got to grasp these never seen before economic events that are already occurring. Negative interest rates on long term government paper is an economic reality.
I know negative interest rates are for most people a quandary. But you’ve got to understand this. In this report, I will take you to places where indeed interest rates are beyond zero and negative. You will not believe what banks and people are doing. Early 2015, Switzerland’s interest rates turned negative. Not for one year. Not for five years. But all the way out to 10 years, meaning that virtually everyone desiring to park their cash, in supposedly safe-haven Swiss francs, had to pay for the privilege.
And Swiss bonds weren’t unique. Yields on French and German sovereign debt went negative out to five and seven years, respectively, while the overnight Euro Interbank Offered Rate (Euribor), which had averaged about 2% for the previous couple of years, fell below zero and stayed there. By the end of 2015’s first quarter, paper accounting for 31% of the Bloomberg Eurozone Sovereign Bond Index was trading with negative yields.
Even more startling than the numbers was the timing. This plunge in rates occurred in the sixth year of a recovery, during which most of the developed world had run record fiscal deficits, cut interest rates aggressively, and created vast amounts of new currency.
The last thing Wall Street wants you to
understand or prepare for is a deflation
and negative interest rates
Let’s start out by the looking at the Feds work product, their statement from their last meeting.
Federal Reserve’s Monetary-Policy Statement
“The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced but is monitoring developments abroad. (They mean the Chinese and European wipe out) Inflation is anticipated to remain near its recent low level in the near term. The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation. (There lies the fatal mistake. We don’t have 2% inflation. We don’t have .02% inflation, They are fighting the wrong enemy. It’s deflation that is the crises. They are waiting for an event we will never see again… Inflation.) This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. (It’s never going to happen in your or my life time.)
Federal Reserve officials’ projections for the U.S. economy help to explain why the central bank delayed a rate hike. Fed officials revised down inflation. The median estimate for inflation is now a modest 0.4 percent this year, down from 0.7 percent in the June projections. (STILL WAY, WAY TOO HIGH.) The Fed targets inflation at 2 percent, a level the projections say won’t be achieved in our life time.
This indicates that they’re still waiting for signs that inflation — which has largely faded because of cheaper oil prices, a stronger dollar, plunging stock market and crashing commodities prices.
Fed officials see growth as slightly stronger this year than they did in June. They also anticipate the unemployment rate falling from its current 5.1 percent to a median of 4.8 percent next year.
They are carefully monitoring the slowdown in China and other emerging markets, in addition to struggles by Europe to increase economic growth. Everywhere they look they see deflation.
We are in for decades of no inflation and
NEGATIVE interest rates and crashing economies.
Here is something you urgently need to know. The cat is out of the bag. One Federal Reserve policymaker believes zero interest rates aren’t low enough and is calling for rates to go negative. The official wasn’t identified in materials the central bank released Thursday. But we have been able to confirm the lone honest man at the FED is Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis.
Kocherlakota was an inflation hawk before undergoing a stunning turnaround in 2012 that transformed him into one of the Fed’s strongest advocates for easy money policies. When he figured out that the FED has created a liquidity trap. And the Investment banks manipulations in stocks and commodities created the biggest bubble the world has ever seen, he changed his position and issued his dire warning. See chart of Banker Syndicated loans that are the life blood of the derivatives casino:
Kocherlakota has been outspoken about his concern that inflation is too low and could move lower. As in a deflation and depression. So why has he come out of the closet now? Kocherlakota will be leaving his post at the end of the year … It is easier to be provocative when you are walking out the door.
The Fed has kept the rate it controls near zero since December 2008. The last time they raised rates was 10 years ago.
The Fed has said, if we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would evaluate in that kind of context. One way to push short-term rates negative would be to charge interest on excess bank reserves.
The interest rate paid by the Fed on excess reserves, the so-called IOER, is a benchmark for a wide variety of short-term rates, including rates on Treasury bills, commercial paper, and interbank loans. If the Fed pushes the IOER below zero into negative territory, other rates are likely to follow. It is this tool that they will be using in desperation. It will result in double digit negative yields.
You must understand that significantly negative rates — that is, rates below 50 basis points – will create an investment world you have never seen before. You can imagine what will happen when long term interest rates got to a -10%. Don’t scoff, it happened before during the last great depression. Financial innovations, such as CASH special-purpose banks and the use of certified bank checks in large-value transactions will be the norm.
Where in a inflation, you defer payments to payback in cheaper dollars. In a deflation, where cash become more valuable by the day, it’s a whole new ballgame. People will make excess payments to creditworthy counter-parties. Because money will be more valuable, people will prefer receiving payments in forms that facilitate deferred collection.
Such responses should be expected in a market-based economy but may nevertheless present new problems for financial service providers (when their products and services are used in ways not previously anticipated) and for regulators (when novel private sector behaviour leads to new types of systemic risk).
Your friendly banker will tell you negative rates are impossible. Because the last thing he wants is for market participants to be holding cash. You have a BIG advantage as a small player… Under five million dollars. You can easily hold cash and US dollar based treasuries.
But cash is not a realistic alternative for corporations and state and local governments, or for wealthy individuals. The largest denomination bill available today is the $100 bill. It would take ten thousand such bills to make $1 million. Ten thousand bills take up a lot of space, are costly to transport, and present significant security problems.
Nevertheless, if rates go negative, the U.S. Treasury Department’s Bureau of Engraving and Printing will likely be called upon to print a lot more currency as individuals and small businesses substitute cash for their bank balances.
In a deflation, their printing of money will not spark off inflation. In fact, just the opposite. If rates go negative, we should also expect to see financial innovations that emulate cash in more convenient forms. One obvious candidate is a special-purpose bank that offers conventional checking accounts (for a fee) and pledges to hold no asset other than green cash (which it stores in a very large vault). I always dreamed about starting one.
Checks written on accounts in a special-purpose bank would be tantamount to negotiable warehouse receipts on the bank’s cash. Special-purpose banks would only work when interest rates (because break-even account fees are likely to be high), go much further negative (globally) than they are now.
A credit card holder might choose to make a large advance payment and then run down his balance with subsequent expenditures, reversing the usual practice of making purchases first and payments later. In essence, turing his credit card into a debit card with a high balance.
We might also see some relatively simple avoidance strategies in connection with conventional payments. If I receive a check from the federal government, or some other creditworthy enterprise, I might choose to put the check in a drawer for a few months rather than deposit it in a bank (which charges interest). In fact, I might even go to my bank and withdraw funds in the form of a certified check made payable to myself, and then put that check in a drawer.
Commercial banks might find their liabilities shifting from deposits (on which they charge interest) to certified checks outstanding (where assessing interest charges could be more challenging). If bank liabilities shifted from deposits to certified checks to a significant degree, banks might be less willing to extend loans, because certified checks are likely to be less stable than deposits as a source of funding.
As interest rates go more negative, market participants will have increasing incentives to make payments quickly and to receive payments in forms that can be collected slowly. This is exactly the opposite of what happened when short-term interest rates skyrocketed in the late 1970s: people then wanted to delay making payments as long as possible and to collect payments as quickly as possible. Some corporations chose to write checks on remote banks (to delay collection as long as possible), and consumers learned to cash checks quickly, even if that meant more trips to the bank, and to demand direct deposits.
When interest rates go negative, the incentives reverse: people receiving payments will prefer checks (which can be held back from collection) to electronic transfers. Such a reversal could impose novel burdens on payment systems that have evolved in an environment of positive interest rates.
The upshot of all this is when interest rates go negative, financial service providers are likely to find their products and services being used in volumes and ways not previously anticipated, and regulators may find that private sector responses to negative interest rates have spawned new risks that are not fully priced by market participants.
In the coming world of negative interest rates, cash will reign supreme, as everyone rushes to withdraw their “taxed by negative interest rates” bank deposits and keep the funds in the form of paper cash, hidden safely somewhere where the bank has no access, and where no bank can collect an interest rate for the “privilege” of being funded with a negative rate liability. Like in the First National Bank of YOUR Mattress.
Traditional bullshit economic theory says that a combination of massive deficit spending and historically low (not to mention negative) interest rates should produce a rip-roaring boom in which workers get generous raises, prices and inflation rates spike, and interest rates follow. Theory also says that, even in the rare case of nominal interest rates turning negative, the rates can’t stay there because beyond this “zero bound,” savers and investors will withdraw their cash and store it themselves, emptying banks and crashing the financial system. And sparking off a inflationary fire storm. BULLSHIT DONT BE FOOLED! Recent events have proven these assumptions are dead wrong. In fact just the opposite has happened.
Loans have to be repaid with funds that might otherwise go toward investment and consumption. Today’s unprecedented levels of debt thus create an economic headwind that requires commensurately forceful policies (including negative interest rates) to induce more borrowing and spending. “People and governments are now leveraged to the hilt, which translates into lower demand, slower growth, and lower interest rates,” says Ken Shepherd, Prospect Mortgage. Here again, “This is not a business cycle thing. It’s structural.”
When central banks buy bonds with newly created currency, they hand commercial banks more reserves with which to write loans. But the experimental and therefore unpredictable nature of these programs is making businesses reluctant to invest, says Keith Dicker, CFA, president and chief investment officer of IceCap Asset Management in Halifax, Canada.
Because policymakers are improvising, “It’s impossible to know what future monetary policy will be,” says Dicker. “In that environment, will you open a new plant in France? Probably not.”
The combination of rising reserves and reluctant borrowers leaves banks with far more money than they need, or can loan out so that is why they go hog wild in incredible stupid speculations on their own hook… You saw the incredible binge, all that cash bankers are holding creating bubbles in commodities and stocks.
Gerald Jensen, CFA, finance professor at Northern Illinois University “Historically, bank excess reserves (funds deposited with the central bank rather than being lent out) averaged less than 3% of total reserves,” says Jensen. “Currently in the US, that number is 95%. So banks have little incentive to offer higher rates to attract or keep customer deposits.”
And the amount of free or excess reserves the banks are holding is getting worse by the month… See the chart below:
This, in time, will push already crashing interest rates deep into negative territory. What the Fed is doing in a feeble attempt to induce more borrowing and spending will blow up in their faces.
We already are seeing a mass migration out of the stock market and commodities markets and into cash. In response, governments and banks around the world are attempting to marginalize cash (physical currency and deposits) by making it harder and/or less attractive to hold. It’s not working and never will.
In early 2015, JP Morgan Chase forbade some customers from storing cash in safe deposit boxes. Swiss banks refused to allow pension funds to withdraw large amounts of cash from their accounts. Danish legislators proposed a law allowing shops to refuse to accept cash payments. Australia imposed a 0.05% tax on some bank deposits. And France cut the legal limit on cash payments from 3,000 euros to 1,000 euros.
In a June 2015 report, the Bank for International Settlements warned that a policy of persistently low interest rates “runs the risk of entrenching instability and chronic weakness.” Such an environment makes several extreme — and, sometimes, mutually exclusive — scenarios at least conceivable.
As these trends continue, another financial crisis is about to occur, the flow of capital away from risk and toward safety will become a tsunami, sending US bond yields even lower. In fact, double digit negative.
The US dollar will soar in value, drawing the lion’s share of global capital flows and rising against all other currencies. Such a scenario would be a bonanza for the owners of Treasury bonds. But it would be a serious crises for those unlucky or unwise enough to own dollars.
Third world countries and the BRICS that borrow dollars and run its economy in dollars will not pay its debts and default. This group includes a big part of the developing world, where approximately US$9 trillion of dollar-denominated debt was outstanding in mid-2015.
In 1937, the United States was approximately seven years into the Great Depression. Today we are seven years removed from the financial crisis of 2008. By late 1936, as today, the Fed started to worry that excess liquidity and credit growth might lead to accelerated inflation. So it took the initiative to soak up the excess reserves on bank balance sheets by increasing the reserve requirement ratio (the equivalent of tightening the money supply). Rather than absorb the excess liquidity, however, this move forced the US economy back into recession.
As today, banks were still worried about a resurgence of economic weakness and, therefore, wanted to maintain greater reserves to protect against a downturn. So, as the Fed elevated the reserve requirement ratio, banks reduced lending. Between May 1937 and June 1938, US GDP contracted by 9%.
We are about to see the same crises again. From a Fed policy perspective, the lesson here is that the 1933–1937 period is similar to the environment today, while the 1929–1933 period is not. The economy today has had roughly seven years to recover, while the 1930s period had four. Like then, today the global economy is faltering, capital is fleeing emerging markets, and the dollar is rising.
That underlines central banks secret concern that non-existent inflation may yet morph into outright deflation, despite zero interest rates and the masses of liquidity coursing through the financial system courtesy of quantitative easing.
All of this is the reason that inflationary forces are declining. And a massive deflation/depression is right around the corner. And just like in 1937 the FED cannot stop this coming wipe out.
You have been warned.
They Are Getting Close… It Will Be $10
At $100 oil Goldman Sacks was predicting $200 a barrel oil. After the market drops to $45, they FINALLY scratched their butt and figured it half out. NOW they predict $20 oil. What a bold prediction. They changed their prediction by $180. They only missed the first $55 of the drop. BUT they are going to grab the last $20. SHIT, what whores. And these are supposed to be the world’s Einsteins of trading. I’ll tell you what they are. Wall Street whores.
Because once again they are setting up their clients to take the fall. And here is why. As you know, we have been warning about the very wipe out in oil we are seeing. As you know, this drop to $10 is the tail end.
The really big call is our prediction for $500 a barrel oil after the death plunge finishes. How do I know I am right? Well in part because Goldman predicts $20 a barrel oil and they are always wrong.
I predict after the plunge to $10 oil, in 18 months we get a damn near overnight run to $500.
To Quote Mr T in part “I pity the fool”…. Who takes their market advise from Goldman Sachs, the money of the clueless. Forget their bullshit!
Now here is the real deal:
Russia and Iran are going to destroy gulf oil production and producers
As we speak, because of Obama’s abandonment of the middle east, the blood is flowing. Our intelligence guys on the ground are getting it right. They are warning that we are losing in the middle east. The Islamic crazies are taking over. 50 intelligence officers have gone public. They have officially complained that their assessments are being changed. Obama does not want to hear about what a screw up he is. Or the great big AWH shit he created in the Middle East.
The truth is, what you are seeing has its roots in Obama’s famous screw up two years ago. That is when the US, Brits and Israelis were on the border of Syria. They were about to attack. And stop the chemical weapons on civilians and end the Assad regime. Obama called the attack off. So much for his chemical weapons line in the sand.
Since that fateful night, to say things have gone downhill is the understatement of the year. A vacuum was created by US troop withdrawal prematurely from Iraq. That fateful move destabilized the entire middle east.
Obama failed to act on his line in the sand. And did nothing about the Syrian military chemical attacks as threatened. Assad read the US withdraw from Iran as weakness. That was further confirmed when the US did not attack when Assad repeatedly used chemical weapons against his own citizens.
It was not just Assad that understood that Obama had given them the green light to do as they please. A whole host of crazies were let out of the bottle. Chief among them, ISIS, which is bringing back the brutality of the dark ages.
Now you may wonder what all this has to do with oil. But it’s all about oil. Look at the map:
Look at the concentration of the green and red dots. That real estate represents two things. The bloodiest place on earth, being torn apart by war. AND it also supplies 1/3 of the worlds oil.
Now look at the map of who in that region is producing all that oil:
As you can see, the bulk of that Middle East production is from Saudi Arabia, Kuwait, United Arab Emirates and Qatar.
What is significant is these key players (known as the gulf producers) are Sunnis. They are the enemies of the other producers the Shiite. Who are chiefly Iran and Iraq.
Look at the next map and you will understand the power struggle:
Syria’s Sunnis are under attack by the Assad regime supported by the Shiites of Iran. Iraq (mostly Shiites)is increasingly coming under Iran control. The US token forces that are left in Iraq are fighting a losing battle.
Oman supports Iran and Yemen is falling to the Iranian supported Houthi. Their leaders, such as Issam Al-’Imad, stated as early as 2011 that they were religiously and ideologically influenced by Iran and as of 2014 it has been observed that The Houthi group’s approach is in many ways similar to that of Hezbollah in Lebanon. Another group supported by Iran.
As you can see, the Shiites are circling the Sunni gulf oil producers, chief among them is the worlds largest oil producer, Saudi Arabia.
And here is the greatest oil trade ever
Oil, because of the global slow down and vast oversupply, IS crashing.
Shit, even Goldman Sachs finally figured it out. As the global slow down bites hard and the bankers go broke again, oil will go to $10 a barrel. That is the short term trade. But it ain’t squat compared to what happens next.
One of the greatest mistakes of our time (besides leaving Iraq to soon) is the Obama Iranian Nuclear deal. What you need to understand is, it’s not simply a nuclear deal. It’s also an economic and military weapon deal too.
Sanctions have meant Iran’s economy has been crippled. It has not been able to produce all the oil it’s capable of. And it has not even been able to sell the oil it’s producing. That’s all about to change. Iran will swamp the market with oil it has in storage, and it will quickly ramp up production. And that is why oil prices will crash to $10.
But there is something far, far more important about to happen. Sanctions have meant Iran has not been able to buy or pay for all the non nuke military toys it has wanted. Namely, the parts for and the purchase of long range missiles and tanks. Look at the map:
Iran has Saudi Arabia surrounded. All that is stopping the attack is the fact Iran needs 18 months to rebuild its economy and military. Now that sanctions are to be lifted, it’s a done deal. Once it rearms, the oil fields of the gulf Arab states will go up in flames. And $500 a barrel oil here we come. In an hour, 1/3 of the worlds oil supply will go up in flames.
An oil field is very easy to put out of production. And it takes years to recover from an attack.
The playboys of the gulf states are no match for the Iranian radicalized forces. These guys want blood and are religious fanatics. But there is something that just happened that is a warning that should not be ignored.
Here is how this shakes out. Assad of Syria has been kept in power by two friends. Iran and Iran’s arms supplier, Russia. Russia is the worlds second largest oil producer. Second behind its big competitor, the Saudis.
Putin is the worlds first trillionaire. Besides being the worlds richest man, he is also the most powerful. He is very, very ambitious to say the least. As a result of his attack on the Ukraine, he is suffering under sanctions.
If that were not enough, he has seen the price for his oil cut in half. And he blames the Saudis, who have not only not cut their oil production, they have increased it. Putin is pissed to say the least. And he is doing something about it.
He is not a man to mess with. And he has a big problem. He needs a high price for his oil. And Putin is used to getting what he wants. SO, how does he get the oil price back up? Well the equation has two parts, supply and demand. As mighty as Putin is and do not underestimate him, he is a mighty dictator. He can not increase global demand. Especially as the world enters this horrible deflation. But there is another side of the equation and that is supply.
If Putin were to cut oil supply, he could get the price higher. But that does him no good. So he has got to figure out a way to cut global oil supplies and production. Without cutting his own output. And he has found a way. In fact he has already put his fiendish plan into motion.
The middle east is already up for grabs. Thank YOU Obama. So all Putin has got to do is get the natural enemies there to do his dirty work for him. And it has started!
Russia is setting up an air base in Syria
U.S. intelligence now shows that Russia is planning to send a force into Syria that is capable of striking targets on the ground. Two U.S. officials told me that the intelligence community has collected evidence that Russia plans to deploy Mikoyan MiG 31 and Sukhoi Su-25 fighter planes to Latakia in the coming days and weeks. The military equipment that has already arrived includes air traffic control towers, aircraft maintenance supplies, and housing units for hundreds of personnel.
As Obama runs out of the Middle East, Russia walks right in. To the determent of all mankind. Russia is filling the vacuum left by the US abandonment of its Middle East allies… But Putin is not stupid. Not by a long shot. Their base, which will eventually have 500 fighter jets, will be the largest in the middle east. The base is set up by invitation of the Syrian government. Completely legal. Much like the US bases now abandoned in Iraq. The Russian MIG base has two purposes. To defend its ally Syria. And to defend its biggest arms buyer, the Iranians. Israels wet dream of attacking Iranian Nuclear weapons facilities are gone.
When Iran gets around to attacking the gulf states oil fields (with its new Russian Missiles)in the next 18 months, it has little to fear. It’s protected by the Middle East’s largest air force… THE RUSSIANS.
It’s the perfect set up. Russia is “neutral” as long time enemies Iran and Saudi Arabia duke it out. Before the world can react, the Saudi oil fields are up in flames.
Everyone goes home happy.
Iran strikes a deadly blow against its Sunni Enemies for Mohammad.
Russia becomes the worlds largest oil suppler at $500 a barrel.
And you could turn thousands into millions as the price of oil soars.
I have prepared a special oil file on all of this… Please click here.
Death by Deflation….
Worst of All
We are in, as President Bush used to say, Deep DO DO. The global deflation that has been growing for years has now taken hold. Commodities prices have crashed world wide and now global stock markets are starting to crash. If you do not understand deflation and know exactly what to do, you could lose everything.
Before we get into proof of the coming deflation/depression, let me explain to you what is happening in the markets and what the future holds.
The next wipe out will take $100 a barrel Crude oil to $10.
Do not get caught up in the incredible spin. Oil is in vast over supply. It’s pretty simple. $100 a barrel oil made it damn profitable to invest in new oil exploration and oil recovery technologies. And it payed off big time. At least at first.
Every producer and producing region of the world have vastly increased their output. Canada, who 5 years ago was a net oil importer, has become among the worlds top 10 oil exporters. The US is very close to becoming energy independent.
What you need to understand, this is a global phenomenon. Global oil supplies are shooting to the moon. On the right is a chart reflecting that fact.
Reality is the global deflationary slow down is reducing demand. At the same time, 5 years of the biggest investment in exploration and new oil field technology have greatly increased supplies and production. And the price of oil reflects that reality. Look at the oil price chart on the right.
As you can see on the chart, oil prices have dropped by half. What you need to understand is the biggest investors in oil were the banks. What they did in the housing markets (creating a bubble) from 2000 to 2007, they did in oil from 2008 to 2015. They were given trillions in virtually free loans by the treasury. And they did two things with that money they leveraged 100 times over.
They invested in and manipulated commodities, especially oil. And they created the greatest stock market bubble ever. (more on stock market further down) In case you have not noticed, commodities and the stock market have all started to crash.
Key word here, started. Because the commodities and oil market wipe out are far from over. In fact, the next leg down in oil is about to begin. If you thought the over supply oil glut was bad. It’s fixing to get a whole lot worse. And here is why..
The Obama Iran Sell out will bring vast amounts of oil to market.
Lifting Iran sanctions, besides letting Iran get nukes. And buying formerly embargoed Russian long range missiles. Also unleashes an oil export juggernaut. Iran’s oil exports plunged under the embargo and sanctions to under 1 million barrels a day. They have already let contracts and ordered badly needed spare parts. Which means they will be able to ramp up production quickly. We are talking about an increase of 3 million barrels a day in their exports. Bringing them to 4.5 million barrels a day.
What most people don’t understand is Iran has vast oil reserves. Its crude oil reserves are ranked 4th and its natural gas reserves are ranked as the 2nd largest in the world. And Iran’s production has been shut in for decades. Funny what Wall Street forgets to tell you.
Look at the map. It shows the locations of Iran’s existing vast oil reserves. But get this, a lot of potential oil rich land in Iran has never been explored.
But there is more. Iran under sanctions could not get the spare parts and equipment for its oil fields. Exploration and new production came to a screeching halt. In other words, they are 20 years behind on their oil field technology. Production was cut by 2/3. Now that sanctions are about to be lifted, that will all change. They have already ordered parts they need to ramp up production. They also have inked contracts for oil field and drilling companies to come in. Which means another oil production star is born.
Oh, one other thing. Iran has had a hard time selling what little oil it produced on the black market. They have stockpiled, mostly on tankers, 50 million barrels of oil. The day sanctions are lifted that oil will slam the oil market.
It’s not rocket science. Oil is seeing an ever increasing river of product come to market. Wall Street and the bankers have failed keeping prices up. There is just too much supply. Every rally back is nothing more than a selling opportunity. Ten dollar a barrel oil here we come.
STOCKS have started their fourth biggest decline in history.
I have predicted AHEAD OF TIME and traded 3 out of the 4 of the greatest stock market wipe outs in modern time. The first great stock market crash was the 1929 wipe out. This gave us the great depression. The second was the 2001 tech wreck. Those of you who were with us at the time know we made a killing. The next great stealing of individual wealth by Wall Street was the 2007 housing wipe out stock market crash. And another great fortune was made. And the fourth is the one that just stated, the banker commodity/oil market crash induced, stock market wipe out. Everyone of these stock market crashes wipes out many people who did not have enough time to wait for a recovery.
Unfortunately, this time the crash and subsequent depression will be like 1929. It will take 20 years or more to even begin a recovery. Most people who are trading today will never see their money come back. This next great depression, like the last one, will end up in all out war.
Yes my friends, World War II was a direct result of the poverty and desperation brought on by a world impoverished by Wall Street. Already for most of the third world, they’re down the road into their commodity induced poverty and depression.
Come to think of it, most all commodity based economies are in the dumpster. Wall street shot ALL commodity prices to the moon and distorted national economies. It was easy to be lured into the trap of making investments and borrowing money based on the artificially high commodity prices.
Now that all commodity prices have crashed, it’s hell to pay. Australia has seen their currency crash. Iron ore, copper and the minerals they used to sell to China are trading for half the price. The billions and billions of mine and port investments are now colossal money losers.
Canada’s oil and mining industries are devastated and their economy is in a recession. The good times are over. Same thing in Brazil and Peru, all the mineral, oil and agricultural exporting nations are the first to fall.
Now it’s spreading. Who do you think manipulated commodity prices to the moon? You got it, our Wall Street banking whores, flush with bailout money from the US, European and Japan’s central banks. They used those funds to manipulate commodities markets and stock markets the world over to the moon.
They then loaned players the money to finance and expand their oil and commodity businesses. They also provided the loans and the capital for the stock market manipulations.
All commodity prices the world over are crashing and all stock markets the world over have started to crash. Can’t you see it? I defy you to find me a commodity or stock market the world over that is up for the year.
Don’t be fooled by the wall street self serving spin. This is not a correction, not a pause that refreshes and certainly not a buying opportunity. This will go down in history as the biggest commodity and stock market wipe out the world has ever seen.
There will be no recession this time, no great recession and bail out. But the biggest depression the world has ever seen. If you do not understand a deflation and do everything right, you will lose everything. And I mean EVERYTHING.
Oil Will Crash
Are you ready for this. 50 million barrels of new oil is about to devastate an already vastly oversupplied oil market. If you hate Obama I understand. But the dumbest deal of the century has the potential to make you rich. And you’ve got to thank the Pres.
It’s now a slam dunk (Obama loves B-ball) all that oil that Iran has stored will come to market and soon! Sanctions against Iran has meant that a vast amount of oil it has been unable to sell on the black market will come to market. Legally and soon. Obama has enough votes to pass the Iran gets nukes deal.
This means two things:
1st in the next 6 months the oil market will see an even bigger over supply crises and oil will plunge to $10.00 a barrel
2nd Iran will get nukes. In the next 12 to 24 months Iran will attack the Saudi oil fields. Thanks to Obama Iran will have enough money to buy Russian rockets. They will attack Saudi Oil fields. Oil will soar from $10 a barrel to $500..
You could get rich in our oil trades two ways.
Your first fortune could come as $50 oil plunges to $10. The oil death plunge has already started. Like we predicted oil has crashed from $100 to now $50. The next leg down will occur as Iran dumps huge amounts of stockpiled oil on the cash market. And triples its oil output to 3.5 million barrels a day.
Your second fortune could come next. The real money to be made is when Iran uses its brand new Russian rockets. Equipped with either conventional warheads or nukes to settle old scores. The Iranian Shiite Muslims hate the gulf state Sunni Arabs, especially Saudi Arabia. They will bomb the gulf state and Saudi oil fields.
Iran is supporting and supplying with arms, Yemen Houthis troops, in an ever growing conflict with Saudi Arabia. Yemen has a long border running along the southern flank of Saudi Arabia. Iran is not ready just yet for all out war with the Saudis. But you can bet at $500 oil it will.
Sanctions have devastated Iran’s economy. Now that Obama foolishly lifted them Iran is re-arming. And preparing for all out war with its hated neighbours to the south..
Obama’s Sell out of America can make you rich.
My oil trades can show you how. I warn you, do not be fooled by attempted manipulations in the oil sector to take oil higher. Our Banker Buddies are losing their ass in commodities, especially oil. This latest stock market wipe out only sealed their coffins.
There will be a great human tragedy and a price to be paid. This silly agreement with Iran guarantees that they will get nukes. But they don’t need them to attack the Saudi’s and the gulf states oil fields. Because the agreement Obama did with Iran also lets them get long range missiles from Russia. There is no defence from a thousand rockets packed with conventional high explosives raining down on 35% of the worlds oil supply.
Overnight the world will be in its biggest energy crises ever. The price of oil will shoot to the moon. But between now and then, oil will go to $10 a barrel.
Why would Russia supply Iran with thousands of its rockets? Well there are two reasons.
1. Iran now has the cash to pay for advanced rockets and Russia needs money.
2. Russia will become the worlds largest oil exporter at the highest price in history. When Iran attacks the gulf oil fields.
Talk about killing two birds with one stone. When Iran attacks the gulf oil fields, not if, the oil glut is solved. One third of the worlds oil goes up in flames. That solves the oversupply problem and low price issue.
Russia becomes the worlds biggest oil exporter and they get the price the highest price ever paid for oil and gas.
Oil at $500 a barrel means Russia becomes the worlds only super power. With a huge surplus economy and a mighty oil based cash generating machine. They sell oil and gas to Europe and with the new pipeline, they sell to a very eager Asia including China, Japan and South Korea to name a few.
On the other hand, America will be mired in its biggest economic crises ever. Its oil industry and banks wiped out by $10 oil.
But it’s uglier than that. Without a drastic change in leadership, America’s military will crumble away. It happened to the Roman’s mighty military. Although never defeated in battle. It was destroyed by stupid politicians.
More about all that later. In closing, I want to warn you. Don’t be fooled by these rally backs. The stock market, commodities and oil all have a date with destiny. Wall Street and our banker buddies are desperate. That can’t stand much more pain.
Oil Market Manipulation Failed.
Still fooling the fools.
Were you fooled? These past few days have had some some real fireworks in the oil market. Oil had its biggest 3 day gain since the start of the gulf war. As oil came off its most recent lows, the Jerk OFFS and the pretty Wall Street babes were fast to declare the next BULL market in crude oil.
What bullshit. Look at the chart, grasshopper and I’ll tell you the real story.
As you can see, oil has come off of its recent $100 high and after a couple of rally backs, crashed to $38 a barrel. Then out of a clear blue sky it “rallied” to $50. And the teleprompter analysts were all over this like an NBA player on a blonde cheerleader.
As you know, I recommended selling oil from the start and adding more into this silliness. Here is what happened. The deep in debt to the Wall Street bankers oil companies got scared as shit. Oil in the thirties is a lethal injection.
They needed relief. The bankers are going broke in commodity trades, especially oil. And losing their asses in energy loans, are trying to suck every dime they can out of the oil companies. It’s the old cliche, you can’t get blood out of a turnip. But you can get plenty of turnip juice if you squeeze hard enough.
So here is what they did. They dialed up their oil manipulations bedfellows, the Saudis, and they got them to run a disinformation story in the OPEC Bulletin.
The commentary in Mondays magazine issued by OPEC’s Vienna headquarters, said downward pressure on prices due to higher production “remains a cause for concern” and OPEC “stands ready to talk to all other producers”.
And it was off to the races because the boys in the trading pits bought. They were tipped 3 days ahead of time.
Monday’s story added anther 8% to the 20% three day surge. And the stupid money was fooled again. The retail brokers and pretty Wall Street TV babes declared a (HA HA HA) new bull market in oil.
Of course it was totally bogus. OPEC will not relent in its price war until it puts as many producers as possible out of business. And that will take $10 a barrel oil. Look they have plunged the oil price 3 times in the past to crush competition.
The planted story was retracted when a Gulf delegate said the Bulletin reflected genuine concern in the Organization of the Petroleum Exporting Countries about falling prices but it did not signal a policy shift or pending production cut. DAH
Oil promptly fell $6 a barrel and will soon resume its death plunge. So what did they accomplish. Well Grasshopper, it allowed the producers to hedge their production for the next 6 months to 12 months at over $50 a barrel. Thereby making the turnip juice the bankers are desperate to collect just a little sweeter.
Unfortunately, not nearly high enough to save their bacon from the fire.
Call this report learning how Wall Street sausage is really made.
Our Party in Oil and Stocks is Far From Over.
Markets will continue to crash
This SMALL reversal in oil is a selling opportunity . See, it’s not supposed to be a straight plunge down. Life is just not that simple. This rally back in oil is NOTHING but a shorting opportunity. It’s temporary and NOT UNEXPECTED! And the stock market, after its rally back, is crashing again… Talk about eyes wide open.
It’s a great place to ADD more positions in our oil trades on the short side. It’s not required, but if you are so inclined, add more. For newbies, it’s a great place to start operations. You can use the DWTI if you have not done so already. If you don’t know what to do it’s OK, that’s my job.
I added the DWTI trade in Nick’s Picks oil. Look, $100 crude hitting $38 and rebounding to $48 is not squat. Keep your perspective. I could see a chance of getting a $55 price and we will add more positions. It changes nothing. Look at the chart.
I heard the spin about the new bull market is crude. The only thing that is a bull here is the bullshit they are spreading. This is a way for the producers to lock in higher prices in the futures markets. AND for wall street to harvest the weak shorts money
Excuse me, a $10 rally back in a market that fell over $60 is called a suckers play. Always remember the slot machine. It periodically spits back some of the suckers losses to keep them feeding money into the machine. So why now? The answer is, once they cracked $45 on crude – everyone and their dog shorted. So it’s time to clean out the weak shorts and down oil will go again.
The oil market is in vast over supply. Here is a chart that says it all:
Don’t let them fool you, the oil bubble is bigger than ever and growing by the day. And yes, they will do everything to hide that fact from you. Markets are supposed to reverse from time to time. It’s the way of the market spin-meisters.
I still see $10 oil in the next 6 months. OPEC is not about to throw in the towel. They know they have not broken their competitors back just yet. They need oil to go down and stay down. When you see the major bankruptcies in the oil sector and lights out in Houston then you will know the oil crash is over.
In the stocks, same game different market. After the death plunge, all the trend, silly ass, buy, buy, buy traders jumped in. Another up move to keep the suckers in the game. Now that’s over. They will flush them down the Wall Street poop chute again. Look at the chart of the open.
There is no chance this bust is over. I am writing this at the NY open. They show a DOW down 400 points to 16,200. the NYSE invoked rule 48. Why? to try to slow the decline. This is still a selling opportunity. And a great way to get at it is the trades in Nick’s Picks. I have added a new trade in the FAZ.
You need to understand this is a bust. A wipe out. A crash in the making. Of course they are going to poo-poo this.
The talking heads and the Wall Street business show babes have their marching orders. Keep the masses calm and keep the suckers in the game. Interview after interview all has the same theme… You’re supposed to stay in the market and get wiped out. It’s all about taking the trusting masses retirement funds and life savings.
I want you to know the biggest wipe out in the history of the trading markets has started. I beg you, don’t be fooled.
Those of you in this with me are having a great time… And the best is yet to come… I pity the fool who trusts the Wall Street, steal your money machine.
It’s my pleasure and profound joy to see you making money.
Bear Market Started.
Wall Street’s Desperate Spin Not Working
What a week, some of the biggest losses in stock market history. And it’s far, far from over. This one scared the tar out of Wall Street and our banker buddies. They have pulled out all the stops, desperate for a rally back. The spin machine is in overdrive. Behind closed doors, they are scared as shit. They know that they cannot stop the flood waters because the dam is cracking.
Look at the chart, it tells it all:
An 18,400 Dow, that took 7 years to build, takes 3 months to lose 1,000 points, 18,400 to 17,400. And then, in 3 days it drops from 17,400 to 15,400. A 2,000 point loss, its biggest, fastest ever. Then came the dead cat bounce. With all the stops pulled and all the money they could muster, Wall Street spin-meisters on hyper-spin could only manage a little over 1,000 point rally back. Pretty damn pitiful.
It is not unusual after a near death experience like we have seen and at the start of a bear market, to see a 2/3 retracement. In this case, a dead count bounce to 17,400 DOW could happen. SO at the present level (midday Friday). It remains to be seen if they can get the market up that far. So far, it’s been a pretty pitiful 1/3 rally back. And here is why I have my doubts that they can do much better.
In the trading networks, bank to bank, like Reuters and Bloomberg, there is an obvious lack of cash. After the commodities plunge, china stock market wipe out and now the US stock market death plunge, I am seeing liquidation. Somebody is losing their ass. In fact, a lot of somebodies are stone cold broke. Which means there is no rocket (money) fuel left to power the market ahead.
Translation, it’s a great time, if you so incline, to add positions and round out your holdings. I have posted a lot of trades in what seem to me the best instruments to use in the past week. Please go to Nick’s Picks stocks to see my past offerings.
You know me, I don’t mince words. This is the start of what will be the greatest financial wipe out in Human history. It’s across the board. Stocks, commodities, currencies (except for the dollar). And it’s across all borders, US, Europe, Asia, Latin America and emerging markets. It’s a massive deflationary wipe out.
What you saw this past week will be seen in the future as a minor swoon. The frequency, velocity and veracity of the downward plunges will become bigger and faster. The losses will stretch far and wide and few will survive in its wake.
I would be remiss if I did not mention crude oil bases WTI light. Crude oil has rallied off of its low of $37.78 to close today at $45.10, another joke dead cat bounce. Look at the chart:
In the past three months, from $65 a barrel to a low of $37 to now trading at a rally back of $45 is pretty sad. Eight bucks off of its recent low. It’s even worse when you consider the fact that Crude is off its recent cycle high of $100 a barrel. Losing over half its value…. Still.
As in stocks, use this rally back in oil as a opportunity to add more positions if you are so inclined.
This is part II of our Mattress series
Hi, our last audio file, First National Bank of YOUR Mattress got a lot of serious questions from you. The questions you asked deserves a further explanation. I know that a financial crash like the great depression is upon us. Only worse, far, far worse. I want you bullet proof. There is understandably a lot of confusion. Do you really think your fund, bank or brokerage firm are going to encourage you to take your money out? Or make it easy? Not hardly!!
And if you think those joke rating services that rank these guys are any good you will be sadly disappointed. Look, these are billion dollar entities. They have thousands and tens of thousands of the smartest people on the planet. All paid to fool you and the regulators.
Governments the world over admit these institutions are too big to audit, regulate or even save. Do you really think some small firm with limited funds, expertise and few people dedicated to the task can rank these institutions? Using only public documents! There is no way they can scratch their butts and figure out what losses bankers and brokerage firms are hiding on their balance sheets. NOT A CHANCE.
As Warren Buffet famously said, you can’t tell who is swimming naked until the tide goes out. The accounting rules were changed in the 2007/2008 financial crises. Financial institutions can legally hide massive losses. They are allowed to value assets on what they hope they will be worth. Not their actual value, known as mark to market.
There is NO WAY of knowing their true financial condition. No one will know how broke they are until they go broke… and this time they will stay broke with your money gone. There will be no bailouts..
Millions of people lost everything in the last Great Depression.
The same horror show as in the 1930′s depression. There will be no bail outs. Governments simply don’t have the cash or liquidity to provide. Central banks the world over are all tapped out from the 2009 bail out. Another great depression is about to happen again. And there will be no hiding from it. Don’t lose everything!
The truth is, in the next financial crash, 2/3 of the investment banks and brokers are about to go broke. Half of the banks and credit unions will be gone with the wind. Gone with your money, your retirement account, your fund. You can’t be to careful.
As far as your broker, they are called a broker for a reason. More then half of these guys will be no more.
The advise you get to buy gold and silver is the worst thing you can do. The stuff will wipe out with your bank. It’s a deflation/depression not inflation/hyper-inflation. Precious metals are simply the wrong medicine.
Because of the great trading opportunities, you should have a broker account. The fact of the matter is, you need banks, you should not disengage entirely. Let me show you systems that work. In this critical audio file I have prepared, I’ll show you how to protect your wealth that is not in your FNBYM (First National Bank of YOUR Mattress) account.
We will show how to diversify your liquid assets and take steps to mitigate any loses. I have prepared an audio file for you that hopefully will ease your pain and show you some steps to take.
Debt Crushing China.
China’s life and death fight for survival will bring down the world economy.
If you read my Special Report on China titled “Chinese Economic Miracle Turning Into A Nightmare” what is going on now is no surprise. The biggest con job in modern history is the “China Miracle”. Try rocky mountain Horror Show. Their debt is 400% of GDP. Their economy is powered by 1 billion slaves producing the cheapest shit, substandard products the world has ever seen. They compete on price and price only. Which means they operate on razor thin margins. They need massive volume to survive and service their out of control debt.
And here lies the heart of the crises. China’s massive debt means they need to have massive growth. It’s the old joke.. they are losing a few pennies on everything they make. But they will make it up with volume. What they forget to tell you is their model is to cover the ever growing losses with more and more debt owed to the west…. And when the growth stops they wipe out as you are seeing.
Yes there is more. You got it, our friendly banker buddies are up to their sleazy neck ties in this. What no one is telling you is the fact the Chinese owe unbelievable sums of money to our banker buddies, the whores of Wall Street.
And China can’t pay them back. And our greedy banker buddies loaned money to China with absolutely no recourse. Which means they have no chance of collecting on these debts that have started going bad. The first loans to default are the massive loans our banker Einsteins have made on commodities.
Yes, you got it. Banker buddies have made massive commodities loans on Copper at an average price of $5 a pound, iron ore at $100 a ton and oil at $100 a barrel. The list goes on and on.
With the global slow down and commodity price wipe out it’s desperation time in Bankerville.
It’s bad enough that our Bankers and fund buddies can’t collect on their bad China loans. But it’s far, far worse than that. Because China, like every Ponzi scheme, requires fresh cash as in a mountain of new loans. A constant stream of new money to survive the spreading global slow down. Their only prayer of survival is to maintain and increase sales and exports. Which means they need to lower prices. And to lower their currency, to lower the final price of Chinese plastic dog shit.
In desperation the Chinese have started a Currency War
That will devastate the global economy. It has changed in the past week to the entire global landscape. Let me explain.
Loser analysts and snake oil salesman have long predicted the demise of the dollar and the rise of gold. The bullshit story goes like this. The massive yearly budget deficits and the massive balance of trade deficits debt, coupled with government printing of money will collapse the dollar into a hyperinflation, out of control spiral.
SIMPLE ANALYSIS FOR SIMPLE FOLKS WRITTEN BY IDIOTS TO TAKE FOOLS MONEY
The fact of the matter is, the US budget deficits are far from crises. Everyone the world over buys all the debt the US issues, at the lowest interest rate in world history. They offer to buy the debt 3 times over and scream for more.
The truth is, the US yearly deficits have been cut in half. From a peak of a trillion dollars a fiscal year to 500 billion. Well within reason for an economy as large as the US. And it’s still dropping.
And the other twin in the twin deficits, the balance of trade deficit, has been cut in half. See chart below.
After peaking in 2007 – as you can see it’s half.
The REAL crises is the dollar is too strong, not too weak
The fact of the matter is, it’s a stronger dollar that is death to business. The higher the dollar goes, the more money US companies lose who on average get 40% of their net profits on overseas sales. The higher your currency goes, the less you sell and the less profits you make. Now for economies like Japan that rely upon 60% of their profits from foreign sales. And the Chinese who rely upon foreign sales for 80% of their income, the currency value is critical. The cheaper your currency the cheaper your products. Giving you an enormous competitive advantage.
Look at the chart below of the dollar index. As the hucksters told you to buy gold because the dollar will crash, the dollar has soared in value.
And to make matters even worse, people who got sucked into alternative dollar investments are not done losing money. Gold will drop to under $300 an ounce. People who bought the hyper inflation hype have been wiped out in gold. Remember the most gold ever sold to individuals occurred at over $1500 AN OUNCE. See the gold chart below.
Pretty ugly, especially when you consider the fact that gold will drop to not just $300 an ounce but under $150.
People who got suckered into silver did even worse. Talk about pitying the fool. Look what they did to Silver traders.
From $50 an ounce to $15 and this was supposed to be a wealth preservation investment. That’s how the Wall Street whores pedal precious metals. Well the truth is, every report flashes it’s deflation warning. And reality is the dollar has soared in value as precious metals have wiped out.
It’s a deflation and as you are seeing the dollar is king and precious metals are inviting disaster.
But the real disaster is the strong dollar, it’s destroying profits on Wall Street and crushing markets the world over.
Oil is the first domino that is falling
It should be no surprise to any one. Global demand for all commodities is falling off a cliff. And Oil is the most widely used commodity in the world. It’s the perfect storm.
Production is off the chart. Iraq is fighting for its survival. And oil shipped out through the south is now up to 4 million barrels a day.
Iran is anticipating sanctions being lifted no matter what the US does. The fact of the matter is the EU and the UN both have agreed to lift sanctions.
Iran is already ramping up productions and no one has the stomach to enforce sanctions that they know are about to be lifted. The Iranian oil ministry says within 6 months their oil output will go from 1.5 million barrels per day to 4.5, an increase of 3 million BPD.
Add to the equation the 45 million barrels of oil Iran has in storage. Oil that is readily available to market and record high OPEC output lead by Saudi Arabia. The US fracking revolution has made the US totally independent of foreign producers or sources of oil. So you can see why we are predicting oil between $10 to $20 a barrel in the next 12 months.
It is one of the all time great trades. And there is more. Oil feeds the deflationary spiral. As the price of oil comes down, producers especially in the US halt exploration. They cut costs, workers and dump oil in a desperate bid to survive. They feed the oil price collapse and deflationary spiral.
Ultimately the Big losers are our good friends the bankers
Now let’s look at the financial side of the equation. Commodities were driven to record bubble highs. Funded by massive loans and manipulations by our banker buddies. The entire commodity complex is wiping out as we speak. The losses are staggering.
The record high commodities prices put in these last few years are now crashing. One hell of a lot of money has been and is being lost. And these massive unprecedented losses are being taken by our banker buddies.
That is why I am so bearish on the stock market (still near record highs) and Financial stocks. Many of you are concerned about the FAZ which is tied directly to the Russell 1000 financial stock index. Your concerns are duly noted and would be correct if we were in ordinary times. But we are not. As a result of the greatest blow up in commodity prices ever, all funded by massive loans and leverage by our banker buddies. I predict a financial collapse of biblical proportion.
It’s really very simple. If we don’t get the greatest banking wipe out ever our FAZ trade is doomed. We will never make any money.
BUT, BUT, BUT, if I am right and the bankers wipe out like I believe with all my heart and soul, the FAZ will soar to new highs. Whether they daily settle it or not.
Question! Is it not my job to see the mega events before everyone else? Did I not see the deflationary spiral first? Did I not see the commodities wipe out? The crashing oil?
I could appreciate it if you were concerned a year ago. When once again it looked like I was a fool and full of shit. But now that you understand that commodities were the greatest manipulated markets ever. Manipulated by our banker buddies on huge leverage with record amounts of borrowed money. And now you see the crashing commodities, the death plunge in oil, the Chinese wipe out starting. You should be able to connect the dots and see what a brilliant group of trades I have put you in.
As I have pointed out over and over again, events that are common knowledge known by the market opinion makers are not trade-able market events. And if markets were all seeing and all knowing, they would never grow these crazy bubbles. And they would certainly not wipe out.
But the truth is, the majority of people can’t see the future. They, in the name of being contrarians, really are running with the pack. Market opinion makers use ANYTHING to trap the fools. Right now, the most beautiful women in the world, who in another time would be dance girls, are on every single business network. Shapely red dress and all. The market sites and studio sets have been redesigned to have them do a shake your booty walk in front of giant screens of the markets.
The ugly ones have disappeared off of every business network. Just enough cleavage and dresses just short enough to slip a little higher when they give you the side shot of them sitting down. They have sports heroes appearing and celebrities too. All touting Wall Streets latest creations… designed to steal people money. It would be laughable if it weren’t so sad.
I love a beautiful women as much as the next man
But let’s not get carried away here and certainty don’t let her carry away your money. The truth is, the Wall Street’s steal your money machine has gone into hyperdrive. They are trying to vacuum up every buck they can. They have deployed new tools and rewritten the book of tricks. Do not mistake this for the height of their power. It is not. It’s the height of their desperation.
Here is your two minute warning. We will soon be adding many trades in our stock market tools. Reality is the US stock market is still very close to its all time highs. So we have some time.
The really big story will be the next banking crises. It will be global and it will be bigger than anything mankind has ever seen before.
Half the wealth of the planet will be wiped out overnight
And you will have the tools to not only survive but thrive. I want you to line your ducks all in a row. Get your house in order and get your head clear.
We know how to do this. I have been preparing all my life for this day that is on the near horizon. Let’s talk straight here. You know I deliver the goods and you know I have the gift to see these things ahead of time.
Relax, you’ve got a ticket to be in the game here. No matter how rich or how poor you are, you can make a killing in these events which have already started.
I am at your service,
And I thank you
First National Bank of YOUR Mattress
Time to open the only bank account you will ever need
Don’t get wiped out and lose everything in the coming banking crash. As you know, times are getting ugly indeed. There are wars and financial panic and massive losses occurring around the world. Billions of people are displaced and poverty is spreading like a case of winter flu in a kindergarten.
Commodities are crashing, banks are going broke (even if they have not admitted it yet) and we are very close to a 1929 style financial panic. One that will wipe most people out in the twinkling of a eye.
How Do I Protect My Money?
The biggest most often asked question I get is how do I protect my wealth in what’s coming. And it’s a damn important question. One that you only get one chance to get right. Knowledge is critical if you want to keep your wealth. You were smart enough to make it. Now learn how to be smart enough to keep it.
There is an entire industry set up to screw you out of your money. From your retirement funds, to investment trusts, to gold, even real estate. What they want you to do is wrong wrong wrong.
The majority of people have got it wrong. And the very thing the financial establishment convinced them to do insures, in fact guarantees they lose EVERYTHING. And guess who the winners will be if you get it wrong? You got it, our wall street buddies. You lose, they win.
This is a difficult subject. Especially if you are still stuck on inflation. I have prepared an in depth tape on preserving your wealth. I try to cover the alternatives and deal with the most serious, often asked questions.
Let’s talk honest. It’s just not about you. If you’re like most people I know, your kids and grand kids are too busy being good little, deep in debt slaves. Shopping till they drop brain washed consumers. Yes I know it pisses you off. But you’ve got to be strong for them too.
It’s not their fault. Don’t blame them for being fooled. I promise you when the bubble bursts they will come back to you. Apologizing and thanking you. The french have a saying:
Once they see Paree it’s hard to get them back on the farm.
Hard but not impossible. When the Nazis rolled into Paris, the French all wished they had a farm to go back to. Well you keep the home fires burning and a candle in the window.
This is a labour of love. It’s my gift to you. I know what to do. We have the technology to preserve and grow your wealth. For some of you it will be difficult. For those of you who have been with me a while, there will be a lot of familiar ground.
I have also taken the liberty of updating some recommendations in the audio tape you’re about to hear. In view of the changing financial landscape this is urgent. It’s worth a serious listen to.
Gold, Oil and China are all CRASHING Stock Market and Banks are NEXT
It’s finally started. Damn near $2000 an ounce gold is barely over $1000. Crude oil that peaked at $150 a barrel and was at $100 in the past 12 months is now under $50. And despite the bogus numbers out of China’s communist government, the truth is their manufacturing miracle is in a colossal slow down. And their only miracle is the greatest debt orgy of any nation ever.
Lets take this from the top:
China manufacturing has been plunging for the last 18 months. The PMI for July was reported at 48.2, its lowest reading in 15 months. Any reading below 50 indicates a slow down. Everything China uses to manufacture in mass is not selling. And prices for key manufacturing commodities they used to suck up like a hoover are plunging in price and volume.
At China’s peak they were buying iron ore at $150 a ton and grabbing all they could. To feed their hungry factories. Now with demand cut in half, iron ore is $40 a ton. Copper that peaked at $9.00 a pound is now trading at $2.40 a pound. Copper actually was stored and traded like gold.
It makes sense that commodity’s are wiping out. Look at the core numbers the spin-meisters can’t change. Demand is falling because the global economy is entering the next phase of the global depression.
Oil is under two curses. Global demand has peaked and is dropping. While global oil production, because of the fracking miracle and wars, is at all time highs. The middle east wars mean everyone needs cash. OPEC output is the highest ever. Led by record production out of Saudi Arabia.
The BIG oil game changer is Iran. They are preparing for all out war. They fooled the fools and are about to get sanctions lifted. Fifty million barrels of market ready oil sitting in storage will come to market in a matter of weeks.
The moth balled oil fields of Iran will be in production again. By the end of the year, Iran production will be over 3 million Barrels a day. The price of oil is headed to $10 a barrel before the coming global oil crises comes.
Gold is the worst investment of the decade. Damn near $2000 an ounce gold has lost half its value. WHY? Because it’s a global depression and prices go down in a depression not up. Gold is doing its job and telling you there is no inflationary crises. Not now and not in the future. Millions of unsophisticated investors who bought into all that precious metals hype are getting wiped out. It’s sad to see. I am on record before the peak of predicting $300 an ounce gold. I may be wrong it may go down to $150 an ounce.
It’s worse for silver investors. Silver peaked at over $50 an ounce and it’s now trading well under $15 an ounce. That is wiping people out the old fashioned way. But silvers crash is not over yet. It will go to under $3.00 an ounce.
Here is reality.
This is the START of the end… not the end
Which means the real fireworks are coming soon. And I want you ready. See audio file at the end
OK, lets get real here. You pay me for the inside skinny. And you expect me to deliver the goods. And I know that. By the way that is as it should be. Please notice I am accountable. Like I say, those business shows and wall street publications tell you what has happened and at best what IS happening. At worst, they feed you as full of crap as they can, to take your money.
My job is different. I tell you what will happen. With a view to first protect your wealth and hopefully multiply it.
As you know there is a major flaw.. Most of the time I know what. It’s the when part that is a bugger. BUT, as you are seeing, when does eventually come. And with these wonderful trading tools time is no longer your enemy. You can wait the bastards out.
You better know I weigh every word I write. I agonize over every prediction. I only put pen to paper or voice to microphone when I can’t stand it any longer.
Like a woman giving birth, I agonize, and when I can’t stand it any longer and I am sure inside, I tell you what I must. It’s then time to deliver the goods.
I know full well it’s hard for some of you when everyone else is giving out the Wall Street lie. And I tell you the exact opposite.
You may ask how the hell do I know? Beats the tar out of me… I just know. Of course, between knowing and telling, I put in a lot of hard work to be sure.
Nobody said it was supposed to be easy. Now comes to what I have to tell you.
Oil, China and gold are symptoms of a much greater problem. And that is the fact the matter is the freeging banks and the derivatives casino is in BIG trouble.
They are stone cold broke and about to wipe out again.
We are on the verge of the greatest banking crises ever
It’s the deep dark secret of Wall Street. The banks are more highly leveraged than in the 2007/2008 financial crises. Remember when they were bailed out they were suppose to de-leverage and scale down their speculative operations. Well, not only did they not liquidate their casino interments, they leveraged even more.
Along with credit default swaps and other exotic instruments, the total national derivatives value is about $1.5 quadrillion – about 25% more than in 2008, beyond what anyone can conceive, let alone regulate or control when the next wipe out strikes.
Since 2008, too-big-to-fail banks consolidated to much greater leverage than ever. They’re financial and political powerhouses, controlling world economies to their own advantage.
Civilization’s have no hope in smashing them or dismantling them into small, impotent pieces, or ideally putting money back in public hands where it belongs. They will wipe out and destroy everything they touch.
This is my great gift to you. They are about to wipe out every credit based institution and debt carrying individual on the planet. That means with your cash in the first national bank of your mattress, you will be a dynasty unto yourself. They wont be able to touch you.
Cash is king and the squeeze has started. Look at the markets, especially commodities. Consider this your two minute warning.
I’ll tell you who’s to blame. My old enemy, that rat bastard sell out Bill Clinton, who repealed Glass-Steagall (the 1999 Gramm-Leach-Bliley Act – letting insurance, investment and commercial banking merge) and the Commodity Futures Modernization Act (permitting unregulated commodity and derivatives trading).
He unleashed the financial predators from hell who entrap small/weak people and entities and nations, making them into their debt slaves. Look how they used the bank credit system to beat the Greeks into submission. They sucked the life out of them like a vampire bleeds its prey. But if you have your wealth outside their (in cash) clutches they cant get to you.
The bankers grow more powerful and wealthier than ever. I am warning you ahead of time, the whole corrupt system is going bust. It will soon decimate billions of people worldwide and create the greatest human poverty and misery ever seen.
I am telling you the derivatives casino counter-parties don’t have funds to pay as the bubbles begin deflating. It’s just a matter of time before current market mania ends.
The Wall Street owned, controlled and operated Fed is the problem, not the solution. Monied interests buy politicians like a New York hooker. They write business friendly legislation, getting Congress to pass it in return for generous campaign contributions and other special favours.
The corrupt, clueless, blow dried pretty boys and sexy, slinky girl models of the financial media don’t know squat about the markets. But are portrayed as experts to trick the masses. America’s and for that matter the global economy and financial system are train wrecks of mass destruction waiting to happen. Nothing can save the global financial system. But I know how to save you.
Ok, now I said it. You are warned.
And no, I am not happy about being the bearer of this incredible bad news.
Sometimes I hate my job.
But I love saving your butt!
How Stupid Do They Think We Are?
Obama does not want the public to understand that Islam is our enemy
Excuse my while I rant and rave. I want you to picture this in your mind. The terrorist’s name is Muhammad Youssef Abdulazeez, 24 born in Kuwait. His father is a Palestinian from Nablus in the West Bank of Israel (home to many, many terrorists) and his mother is from Kuwait.
He immigrated to the US with his family in 1996. His father has been investigated for supplying funding to terrorists. And Muhammad, his son, just attacked and killed US military personnel in the US.
To add more to the theatre of the Absurd, ISIS Tweeted a Warning 11 minutes Before the Terror Attack. ‘O American Dogs, Soon You Will See Wonders’ #Chattanooga.’ See copy of tweet on the right.
On the last day of Ramadan, a murderer and devout Muslim named Muhammad attacks US Military unarmed personnel. Killing 4 marines and seriously wounding another.
He does this as ISIS commanded, on many social media websites. ISIS has been calling for “lone wolf” style attacks in the U.S. on the military and police during the month of Ramadan. In fact ISIS said any terrorist believer who did such an attack to celebrate the last day of Ramadan will get 100 times the usual 40 virgin reward.
Muhammad frequently traveled to the Middle East and went to Jordan a number of times. Last year he spent 7 months in the Middle East, exact location unknown.
It’s been reported he went to Yemen to complete his radicalization. His high school yearbook quote was, “My name causes national security alerts. What does yours do?” It’s pretty obvious this Islamic Terrorist, from a terrorist family, was in training for a long time.
So what does Obama do as US marines are being slaughtered like pigs? Read it for yourself:
“Michelle and I would like to extend our warmest wishes to Muslims in the United States and around the world celebrating Eid-ul-Fitr,”
“As Muslims mark the end of the month, they are reminded that Ramadan is a time to reflect spiritually, build communally, and aid those in need. While Eid marks the end of Ramadan, it marks a new beginning for each individual — a reason to celebrate and express gratitude on this holiday.” “As Muslim Americans celebrate Eid across America, the holiday is a reminder to every American of the importance of respecting those of all faiths and beliefs,”
“Michelle and I hope today brings joy to all of your homes, both here in the U.S. and around the world. From my family to yours, Eid Mubarak!”
The most disgusting part of this is US law enforcement officials are bending over backwards not to call this an Islamic terrorist attack
Why? because the last thing the Obama pro Muslim administration wants the pubic to know is the fact that we are at war with Islam. And the fact Obama supports them. He has opened the door to immigration of Islamic radicals.
He supports, aids and abets the Shiite war against the Sunnis in the middle east. And he forces the traditional media, in the name of political correctness, not to report the Islamic terrorists attacks on US soil as what they are.
The body count, not counting 911, is over one hundred people dead or wounded by these domestic Islamic terrorists.
It is outrageous that the Obama administration refuses military personnel the right to carry arms and defend themselves.
Muhammad, the latest terrorist, was able to murder in cold blood 4 combat hardened Marines, one who received the purple heart twice.
The marines, all accomplished weapons experts, were forced by their commander in chief to be totally disarmed. Even though the FBI and NSA received thousand of intercepts from Islamic terrorist groups calling for their members to attack US military personnel in the US.
Now if that were not shameful enough, all the kings horses and all Obama’s men are bending over backwards TRYING NOT TO CALL THIS latest atrocity ISLAMIC terrorist attacks.
So how far down this idiotic road of political correctness are we going to go?
This is some very, very sick shit. How are you going to defend yourself against an enemy you will not even acknowledge… Never mind investigate.
Obama refuses to let our intelligence community set up operations against Imams, Mosques or know radical members of Islam. It is forbidden in the name of racial profiling.
When are we going to face the cold hard reality that Islam is our enemy? When are we going to realize Obama and his administration is aiding and abetting that enemy.
Someone has got to speak out
Obama Sells Out America to Iran
Just like North Korea they will soon have nukes
Here we go again. Let me explain. We are being sold out by lefty liberals with an agenda. I believe that agenda is the destruction of our way of life. And this latest nuclear deal with Iran proves my point. But there is more.
Back in 1994 we had what was known as the agreed framework with North Korea. This program was set up with the intent of preventing them from EVER getting nuclear weapons. This was a Clinton administration program run by a Mrs Sherman that failed at every negotiation she ever attempted.
So how was she rewarded for that huge screw up? Under the Obama administration, she was the chief negotiator on the Iranian nuclear agreement, appointed by her old pal Hilary Clinton when she was Secretary of State. On September 21, 2011, Mrs Sherman was appointed to the position of Under Secretary of State for Political Affairs by Hillary Rodham Clinton, the United States Secretary of State. In this capacity, Sherman has led the US team during six negotiating rounds between Iran and six world powers about Tehran’s nuclear program.
She can’t claim innocence this time, when the Iranians get nukes. In October 2013, before negotiations began in Geneva between Iran and the so-called “P5+1,” she made a comment about the Iranian negotiating strategy in a Senate committee hearing. She said, “We know that deception is part of their DNA.”
Despite this knowledge, she still went on and negotiated a Nuclear deal with Iran that not only lets them keep their nuclear technology. But it also has no real time guarantees or unfettered inspections to military sites of interest.
Yes the failed negotiator who allowed Iran to get Nukes was the chief negotiator on the Iran Nuclear Deal
If it were not so sad it would be funny. Bail out Greece. But to save the greedy banker’s Butts once again. The global banking system is stone cold broke. Soon you will see the runs on banks and ATM machines without money the world over.
It’s a sad day indeed. In an irony of all ironies, Mrs Sherman, a Jew herself, has sold out poor little Israel. On a daily basis, the ayatollahs of Iran swear to destroy Israel.
Here is what Prime Minister Benjamin Netanyahu, the prime minister of Israel, had to say. “Iran is going to receive a sure path to nuclear weapons. Many of the restrictions that were supposed to prevent it from getting there will be lifted. Iran will get a jackpot, a cash bonanza of hundreds of billions of dollars, which will enable it to continue to pursue its aggression and terror.”
Netanyahu’s coalition partner, Education Minister Naftali Bennett, added: “Today a terrorist nuclear superpower is born, and it will go down as one of the darkest days in world history.”
Mark my words, Tel Aviv will be the first modern city of our era to be nuked. And the innocent blood is on Obama’s, Mrs Sherman’s, and Hilary’s hands. Kerry… he is just a useful idiot.
BUT IT DOES NOT END THERE
Obama’s nuke sell out to Iran will first destroy THE global economy, WITH CONVENTIONAL WEAPONS
Gasoline when you can find some will be $10 a gallon and crude oil $500 a barrel.
World bankers preparing for global depression
Here is the truth you are not being told
The fact of the matter is that Iran sanctions will soon be lifted thank you Obama. Iran will now have the money to rebuild its shattered economy, sell oil and buy Russian missiles. 50 million barrels of oil in storage are on the way to market.
In the near term (6 to 12 months) the price of oil will collapse. Then soar in value. As you know we have a trade for that.
Here is how this happens.
Iran will get the bomb just like N Korea did. Under the threat of nuclear war and ISIS terrorism Iran will be seen fighting Arab terrorists when it attacks the gulf states oil fields.
Iran will use the cover of fighting ISIS to attack the oil fields of its arch enemy the Saudis
1/3 of the worlds oil will go up in flames overnight
Iran’s dream of global jihad will light off a greater war in the middle east.
Iran is convinced it will win.
It is already the mightiest military power in the Middle east. With the regions biggest army and greatest missile arsenal … They are the regional power broker. And Obama letting them keep their nuclear program guarantees Iran’s superiority.
And guarantees all hell breaking loose in the Middle East.
Now that sanctions are lifted the Iranian arms buildup will begin big time. Not just nuclear but conventional arms as well. All funded on their vast supplies of oil.
Iran will quickly modernize their military and their Partner Russia is only to happy to supply them with all the weapons they could ever want. Especially since the embargo is lifted and with oil sales resuming Iran can pay.
First, all this oil coming to market will crash oil prices. Remember Iran has 50 million barrels of oil to sell today… And they will quickly ramp up production to 3 million barrels a day.
That kind of supply hitting the market will collapse the oil price in the near term
In the long term, bombing the gulf states oil fields will create a oil supply crises like we have never seen before. That will make them a global power house
And they know just how to start an energy crises
Are you ready for a global energy crises as in virtually no gasoline and when you can find some its $10 a gallon
The global depression will be brought to us by a world energy price of $500 a barrel oil. The oil crises will devastate global stock markets
But this disaster does not have to happen to you. You can become a millionaire in the coming oil bonanza
To create an oil shortage is easier than you think. 1/3 of the worlds oil comes from the Gulf oil states of Saudi Arabia. If the critical supply of middle east oil is disrupted, overnight energy pries will soar
Russian and Iranian conspiracy to take most all of OPEC oil output off the market. Saudi Arabia and the Sunnis gulf oil states account for 1/3 of all the worlds daily oil supply
If that oil is suddenly no longer available from Saudi Arabia the worlds second largest oil exporter, the world biggest oil producer Russia becomes a big winner
Iran is already among the top 10 oil producers. And now that sanctions have been lifted Iran can ramp up production and become the worlds newest oil super state
Don’t kid yourself, it was Russia that forced Obama to make this incredible stupid deal freeing Iran to pursue Nuclear research, sell oil again and become the only middle east super power
The end game is Obama needs Iran to fight ISIS, there is no one else
Iran are Shiite Arabs and ISIS are Sunnis and so are the rich oil states of Dubai and Saudi Arabia.
Iran Shiites and Saudi Arabia Sunnis are mortal enemies and are already fighting a proxy war.
It’s only a matter of time before Iranian missiles rain down on the Saudi and Sunni gulf oil producers oil fields.
This is worth millions to you. As the oil from the middle east goes up in flames oil prices will soar.
I am preparing you to cash in big time as the war already raging in the middle east eventually spills over into the vast oil fields.
The ISIS war is the perfect excuse to attack the rich oil fields of the Sunni’s of Saudi Arabia, Kuwait United Arab Emirates and Dubai.
As we speak Iran is fighting a proxy war against the Saudis. The southern border of Saudi Arabia with Yemen is already a battle ground
The forces in Yemen attacking Saudi Arabia are being supplied, trained and supported by Iran. It would not take much for that war to spill over into the rich oil fields of the Sunnis
When the Saudi oil fields are ablaze, oil will do a moon shot and the worlds economies 100% dependent on oil will be devastated, the stock market will crash, retirement accounts will go to zero. Economies will be devastated
Russia and Iran plan to stop the critical oil flow from the middle east and get the price of oil to $500 A BARREL AND GASOLINE RATIONED AND SELLING AT $10 A GALLON
The Obama sell out was the last piece in the Iranian puzzle.
Remember, first is to sell the oil in storage, then ramp up production. This crashes the oil price
Then, re-arm and finally, to attack the Sunni oil fields. Obviously oil will do a moon shot.
And I want you there for that
Never Have The Bankers Been So Desperate
Time to take off the kid gloves
There is a killing to be made in these markets. But you’ve got to understand what is really going on. And that is my job. I would never ask you to make a trade without giving you my trade rationale.
Recent events we have long predicted have given us multiple trading opportunities. Remember the secret, if the CORRECT information is in the market then it’s priced in and there is no trading opportunity.
As you know, my job is to scratch my butt. Figure it out first. Place our positions and then go fishing while we wait for reality to return.
I HAVE BEEN TRADING, WRITING AND ANALYZING MARKETS FOR THE PAST THIRTY FIVE YEARS.
Many of you have been with me for decades. Some of you even go back to the days when we had the brokerage firm. We call you the Nick Lifers.
The other day, I was talking to our IT guy Needles. He is the man that makes all this magic on the web sight and the emails happen. He has been with us for decades.
We were talking about how important it is to have credibility and accountability. The point is, all of our past trades and commentary are always on the website. We give you the historic record.
The conversation came about because in recent weeks a lot of the brand X. make believe analysts are changing their tunes on Greece, China, Iran and oil. And Needles asked me if it pissed me off because we all know who got there first. And we get no public credit.
I told him that the Wall Street Machine is our enemy. And they have spent 30 years discrediting us and trying to silence our voice. The last thing they want is for the masses to understand the tricks they use to take people money. And that means, the last thing they want people to see is our analysis of the markets.
Who do you think got Greece into the mess it’s now in? One of the biggest investment banker whores, Goldman Sachs.
It’s a great gift to see the future in markets but it is also a great curse. Let me explain. I look at the markets and the present line of crap Wall Street is peddling and then I go to work. I figure out the reality and I look for the trading opportunities.
A great example is the Euro debt crises. It was obvious to me years ago that the huge Euro debt and the slowing global economy would bring down the union.
I said years ago that Greece, Spain, Italy and France would eventually leave the union. Then I went to work looking for trading opportunities. The first we generated was our Euro short. Another is our short of the Euro stock market. That’s the blessing.
The curse is, it takes these mega events years to unfold. And when you’re the first one making these bold predictions, you look foolish until the event you predict happens. And that means you have to wait for your reward. Of course when the events you predict start to become headline news, it feels pretty good.
Hell YES the Greeks will be the first to leave the Currency UNION but not the last
Twisting and turning on the spigot, Greece will eventually be forced to leave the European Union. Not now but later. And it will lead to a chain reaction as Italy, Spain, Portugal and even France leave the EU and China’s debt implodes.
The global, dead broke bankers, who are choking on Euro debt, will go broke and stay broke this time. And there will be hell to pay as the entire world is suddenly impoverished. The only cash you will have is what you make trading and stash in The First National Bank of your Mattress. Greece has many lessons to teach us. Look how the bankers squeezed the masses. No cash, little money from ATM machines.
Now that they have beaten the Greek masses into submission, viola, cash suddenly arrives. This is the model of how the bankers extort money out of governments and the masses know that they’ve got control of the global money system. If you let them control your money, they own you. This is how the bankers squeeze the masses.
If you do it right, the bankers can’t squeeze you
But you don’t have to play their game. There are many, many transactions outside of the banking system. Make sure you obey all of the laws. The lesson, if you’ve got the cash, you won’t end up like the suckers on the streets. If you got the cash, you don’t have to wait in line for 6 hours to get 60 Euros.
Look, the people in Greece that have cash are king. Now I want you to really get this. There were and are no wheel barrels of money for a loaf of bread. No hyper inflation. That is banker misinformation.
The last thing our banker buddies want you to know is, that in fact, just the opposite is true. It’s a global deflation. If you’ve got the cold, hard, cash as in DO-RAE-ME, you’re king. The bargains to be had in Greece are unbelievable.
Again further proof, in a crises of the deflationary kind we are in, gold does not do squat. In fact, I doubt you would find more than a dozen places you could sell your gold in Greece. And I doubt for cash, unless you’re willing to take a great big, giant hair cut.
The lesson is, if you don’t need the bankers loans, if you don’t need their ATM machines. If you’ve got no debt, cash in the First National Bank of your mattress, they have no power over you. CASH is king. Not Gold, not silver, not credit. Cold hard cash.
Learn the lessons this minor Greek Opera has to teach you. Because it is the glimpse of the ugly future to come.
This is all about the bankers raping the Greeks and for that matter everyone else on the planet. Because they are stone cold broke, highly leveraged and in a desperate fight for their very survival. The dead broke bankers will take down the global monetary system. And that my friend is worth millions to you.
This next bail out, number 5 of Greece, will cost 250 billion dollars. 100 billion in new cash to cover interest payments due on debt to bankers. 125 billion in private sector loans, credits to get the Greek banking system going again. And another 25 billion to the Greek government to meet operating expenses.
And that’s just what it will take to the end of the year. Yes that right, the whole opera will be replayed again next year.
Sooner or later, kicking and screaming all the way, Greece will be the first forced to leave the Euro. There is no way they can stay. And the even deeper in debt Spanish, Italians and French will also leave. See, this is the part about seeing the future.
Whatever they have told you about Greece is true. What they are not telling you is the fact things are far, far worse in the rest of the southern Europe EU members. Unemployment is just as bad in Italy, France and Spain as in Greece.
What is worse, are the debts of France, Italy and Spain. They are far, far bigger than little piss-ant Greece. And they can’t pay either. In all, Southern Europe will need tens of trillions in bailouts. The money does not exist.
We have three trades that are set to kick butt when the next round of European government debt defaults start. They are the Euro trade, The banker stocks trade and the coming crash in the European stock market. That’s the part about cashing in when you see the future.
But it’s not just Europe. China wipe-out has started
The reality is, the worlds central banks are tapped out. Because the contagion has spread to China. Yes, with little publicity, China debt defaults and the long feared China bubble stock market crash has started. If you think Europe is in trouble, you ain’t seen nothing.
In banking and credit circles, countries with a debt to GDP ratio of 100 are regarded as in big trouble. Poor little Greece runs a debt to GDP ration of 170. A pretty big number and you see the trouble they are in.
But the dinosaur under the carpet is China. Never has any country in world history racked up bigger debts. All non-collectable from our commie friends the Chinese. Their debt to GDP ratio is over 300. Yes, you read that right. It’s another little secret our banker buddies don’t want you to know about. Why? Because they are holding a mountain of worthless Chinese debt.
The world bankers are choking on soon to be worth nothing China debt. They owe the worlds bankers trillions. Funny how you never hear a disparaging word. WHY? Because the game the worlds bankers play is, keep it zipped. Never warn about a wipe out.
After all, you would not want to panic the markets. Well there is panic. The Chinese stock market has taken close to a 40% hit. That is the equivalent of an 8000 point drop in the DOW from its recent record highs. Shares in over 800 Chinese companies have seen trading suspended. They have for now slowed the death plunge. But at a high price. Half of Chinese stocks are not trading. The central government imposed trading halts. And most large traders are prohibited from selling any stock for six months.
It’s been close to a decade since the last banker wipe out. And they are still trying to get the global economy to recover. ALL nations and companies around the world have taken on unprecedented amounts of debt. All with the hope of igniting some growth. It has not worked. There is no more money to cover the hundreds of trillions of bad debt sitting in the global banking system.
And I want you to grasp this grave danger we all face and be protected. The truth is, the coming banking wipe out chain reaction has started. It is a great opportunity to get filthy stinking rich.
Just like Greece, all they are doing is postponing the coming wipe-out. So that gets us to part two of what I do. Part one was when I predicted the Chinese wipe-out in a special report I did over a year ago. It’s still in the special report section of the website.
And part one is waiting the suckers out. I have a great Chinese stock market trade I will be putting up on the website.
The Iranian nuclear sell out will be done
As you know, we have some great oil trades. The existing over production and glut in the oil business is about to get a hell of a lot worse. With Iran out of the market, oil has plunged from $100 a barrel to $50 because of fracking bringing vast amounts of oil to market. As you know, another event we predicted well in advance of the so called oil experts. Now add the lifting of sanctions against Iran and here comes an oil tsunami. $10 a barrel oil here we come. Another wait for the market to figure it out trade.
Is it not time for the good honest people to prosper?
You know what is happening and the significance. The next step is to understand the great trading opportunities this wipe out that has already started offers. By the way, this will be your last chance. After this financial market, banker melt down, the global financial system will be no more. Trading the markets will be no more.
After the markets wipe out this time, there will be unprecedented global turmoil. Look at the news, it has already started. But you ain’t seen nothing yet. Far, far worse things are on the near horizon. We will end up with a global barter system, then something far more sinister.
The global cashless society. The mark of the beast, you can’t buy, sell or trade without it. Before you worry about that, let me show you how to get rich first. Protect your wealth. Then we will deal with the next stage of the ugliness that will follow.
And we have to consider the bubble stock market in the US. It started in Greece, spread to China. The US stock market is next.
I want you ready for the next and even bigger financial crises. The break up of the European Currency union and the biggest banking debt wipe-out the world has ever seen as China implodes.
There will be no bail out of our sleazy banker buddies this time. If you think 2007/2008 was a big deal. You have not seen squat.
Defiant Greeks Say No…HELL NO
Europe closes GREEK banks…Takes their money
Well it’s here, the first crack in what will be the smash up of the German led European Currency Union. And there will be hell to pay in every economy on the planet. As we long predicted, the crack up of the European Currency Union has now begun. And we have some trades that are doing great. The fact of the matter is the Greeks are right. Bailouts were never intended to bail out Greece. But to save the greedy banker’s Butts once again. The global banking system is stone cold broke. Soon you will see the runs on banks and ATM machines without money the world over.
Hell YES the Greeks will be the first to leave the Currency UNION but not the last
And it will lead to a chain reaction as Italy, Spain, Portugal and even France leave the EU and China debt implodes. The global dead broke bankers will go broke and stay broke this time. And there will be hell to pay as the entire world is suddenly impoverished. The only cash you will have, is what you make trading and stash in The First National Bank of your Mattress.
The stone cold broke European Central bank has been desperately supporting the Euro. Borrowing like crazy. That will soon end. Markets are reacting. Investors yanked $2.9 billion from European government bond funds last week, more than ever before, and pulled $699 million from short-term investment-grade U.S. bond funds, Bank of America Corp. and Wells Fargo & Co. data show. While these assets have traditionally been havens during rocky periods, they look less appealing now after more than six years of unprecedented monetary stimulus that pushed yields to record lows.
This is all about the bankers raping the Greeks and for that matter everyone else on the planet. Because they are stone cold broke, highly leveraged and in a desperate fight for their very survival.
Yields on Greek debt are out and out loan shark rates. Some Greek debt yields as high as 50%. What country can possible pay those kind of rates. The bankers don’t care. In essence they are willing to throw the world into abject poverty to line their greedy pockets.
But it’s not just Europe. China wipe out has started
The reality is, the worlds central banks are tapped out. Because the contagion has spread to China. Yes, with little publicity China debt defaults and the long feared China bubble stock market crash has started.
Close to a decade since the last banker wipe out, they are still trying to get the global economy to recover. ALL nations and companies around the world have taken on unprecedented amounts of debt. All with the hope of igniting some growth. It has not worked. There is no more money for the the hundreds of trillions it will take to bail out the global banking system this time.
And I want you to grasp this grave danger we all face and be protected. The truth is, the coming banking wipe out chain reaction has started. It is a great opportunity to get filthy stinking rich.
Is it not time for the good, honest people to prosper? You know what is happening and the significance. The next step is to understand the great trading opportunities this wipe out that has already started offers. By the way, this will be your last chance. After this financial market banker melt down, the global financial system will be no more. Trading the markets will be no more.
After the markets wipe out this time, there will be unprecedented global turmoil. Look at the news, it has already started. But you ain’t seen nothing yet. Far far worse things are on the near horizon. We will end up with a global barter system, then something far more sinister.
The global cashless society. The mark of the beast. You can’t buy, sell or trade without it. Before you worry about that, let me show you how to get rich first. Protect your wealth. Then we will deal with the next stage of the ugliness that will follow.
It started in Greece. The cold, hard, untold truth is that 97% of ALL bailouts given to Greece were used to pay loan shark interest rates to the Banker whores. It’s been a banker bailout, not a Greek one. Greeks are supposed to impoverish themselves to pay exorbitant interest rates. Banks are wiping out as we speak.
If you think Greece is bad, I want you to consider the fact that things are far worse debt wise in Italy, Spain and France. And don’t forget the fact the Chinese miracle has now turned into a nightmare.
Although it’s starting in Europe, it does not end in Europe. China is the most deeply in debt country in the world. It’s a closed society and for two decades they have been able to hide the ever growing debt crises.
Greece has a debt to GDP ratio of 170%. The IMF says that amount of debt is not sustainable. And I agree. But I find it amusing that none of our banker butt heads mention China debt.
The world bankers are choking on soon to be worth nothing China debt. They owe the worlds bankers trillions. The China debt to GDP ratio is over 300. Yes you read that right. Funny how we never hear a disparaging word. WHY? Because the game the worlds bankers play is, keep it zipped. Never warn about a wipe out.
After all, you would not want to panic the markets. Well there is panic. The Chinese stock market has taken close to a 40% hit. That is the equivalent of an 8000 point drop in the DOW from its recent record highs. Shares in over 400 Chinese companies have seen trading suspended.
And we have to consider the bubble stock market in the US. Which is the next to wipe out. The amount of debt and leverage on US corporate balance sheets is unprecedented. And the truth is, the rising dollar, the Asian wipe out and the European debt crises are destroying what little profits are left in US corporations.
As we speak, global financial leaders are in a panic. They are in secret and not so secret talks about what to do. The truth is, little ole Greece is responsible for bringing down the global debt orgy house of cards. It started in Greece, spread to China. The US stock market is next.
This is not about Greece. Like I have been saying
What happens in Greece does not stay in Greece.
Athens is the least of our sleazy banker buddies problems. The two ton Gorilla in the closet and the elephant under the carpet are the dead broke Mediterranean European Union members. As in Italy, Spain and France. And the Chinese debt crises.
And that my friends spells curtains for your friendly neighborhood banker and fund. Because the truth is, US banks are so broke and wiping out on the high Yield European and Chinese debt they have been gorging on these past 5 years.
I want you ready for the next and even bigger financial crises. The break up of the European Currency union and the biggest banking debt wipe out the world has ever seen as China implodes.
There will be no bail out of our sleazy banker buddies this time. If you think 2007/2008 was a big deal. You have not seen squat.
And you need to wake up and smell the coffee. Sure they will tell you all is well and we have little exposure to Europe or China. Don’t believe it for a minute.
The global financial melt down has started. And that means one of two things for you. Abject poverty as your traditional investments and banks accounts are wiped out. Or countless millions as you cash in as the global economy is cashed out. You decide.
Greece Stands Up To The IMF And The ECB
Breakup of EU Currency Union
As we long predicted, the crack up of the European Currency Union has now begun. The fact of the matter is, the Greeks are right. Bailouts were never intended to bail out Greece. But to save the greedy banker’s butts once again.
The cold hard untold truth is that 97% of ALL bailouts given to Greece were used to pay loan shark interest rates to the Banker whores. When the entire European Union slipped into the funk, the bankers swooped in like a bunch of blood suckers. Austerity has directly resulted in a 50% contraction in the Greek economy. Unemployment has run year after year at over 25% and youth unemployment runs 50%.
This is not about Greece. Like I have been saying.
What happens in Greece does not stay in Greece.
Athens is the least of Europe’s problems. The two ton Gorilla in the closet and the elephant under the carpet are the dead broke Mediterranean European Union members. As in Italy, Spain and France.
And that my friends, spells curtains for your friendly neighbourhood banker and fund. Because the truth is, US banks are so broke and wiping out on the high yield European debt they have been gorging on these past 5 years.
I want you ready for the next and even bigger financial crises. The break up of the European Currency union and the biggest banking wipe out the world has ever seen.
There will be no bail out of our sleazy banker buddies this time. If you think 2007/2008 was a big deal. You have not seen squat.
And you need to wake up and smell the coffee. Sure they will tell you all is well and we have little exposure to Europe. Don’t believe it for a minute.
The global financial melt down has started. And that means one of two things for you. Abject poverty as your traditional investments and banks accounts are wiped out. Our countless millions. You decide.
Greece Defaults on It’s IMF Loan Financial Panic Looms
Greece Contagion Next
Greece’s became the first developed economy to default on a loan with the International Monetary Fund. The IMF is the lender of last resort and to not pay them back is a major “oh shit”.
It will not be the last lender Greece does not pay.
The IMF confirmed that Greece had not made it’s scheduled 1.6 billion euro loan repayment to the fund. As a result, IMF Managing Director Christine Lagarde, will report to the global lender’s board that Greece is “in arrears,” the official euphemism for default.
Greece has received nearly 240 billion euros in two bailouts from the European Union and IMF since 2010. The money has allowed it to stay afloat but at a high cost to its population, which has absorbed draconian increases in taxes, cuts to pensions, wages and public services.
Greece owes close to a trillion dollars to foreign lenders, counting interest. Mostly to highly leveraged hot shot investment banks and funds that grabbed Greek debt in mass because it pays the highest interest rates in the world. See blue line on the chart on the right.
Fears of a Greek default have unnerved financial markets on concerns that it would ultimately lead to the country’s exit from the euro common currency. The fate of Greece’s membership in the 19-nation currency bloc still hangs in the balance ahead of a referendum on Sunday, when Greek citizens will vote on whether to accept the severe austerity terms for continued international aid.
What they are not telling you is, the Greek debt default chain reaction has begin. They can’t throw Greece out of the European Union. If they try, there will be hell to pay. There is no mechanism to remove a member and the Greeks damn well know this. It’s a catch 22. If they keep Greece in the European Currency Union, it will cost them a trillion Euros.
Here is the game. Greece does not even have to default on it’s debt to solve it’s debt crises. Just leave the currency union and go back to the drachma. It can then declare it’s Euro Debt, Drachma debt and discount it 90%. And the Greek economy, banks and merchants can still accept Euros. Problem solved. At least for Greece… It’s an unmitigated disaster for the greedy banks that gobbled up Greek debt with both hands. They are in the fight for their lives to not take a haircut on the Greek debt they hold.
Not all members of the European Union are members of the Banking Union or Currency Union. England and Sweden are examples of just such a situation.
The Greek referendum, scheduled for July 5, is not about EU membership. The vote is whether to accept further draconian austerity. The Greek citizens are right, they have been reduced to abject poverty trying to pay back their massive debt that is twice GDP.
55 countries in similar situations have defaulted in the past hundred years. Greece will be number 56. The reason for all the strife is a Greek default on all it’s debts will bring down major banks. I want to explain to you how Greece plans on defaulting and how this will unfold.
It’s really pretty simple.
This is the first time in IMF history that an advanced economy has defaulted on a loan from the IMF. The lender of last resort. Putting Athens, whose economy has contracted by more than 25 percent since 2009, in the same bracket as Zimbabwe, Sudan and Cuba.
Fitch ratings agency cut it’s long-term rating on Greece to CC from CCC, saying the breakdown of negotiations had significantly increased the risk that Greece would not be able to meet it’s debt obligations in the next few months.
With it’s missed IMF payment, Greece is on a path out of the Euro, with unforeseeable consequences for the EU’s grand project to bind countries through a single currency and for the global economy.
Standard & Poor’s lowered it’s sovereign rating on Greece and said the probability of Greece exiting the euro zone was now about 50 percent.
“What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible,” said Spanish Prime Minister Mariano Rajoy, who a week ago declared that he did not fear contagion from Greece.
See the game? The last thing the Spin-Meisters of the Euro want or need, is a Greek default or exit from the currency union. That means they’ve got themselves a major problem. What to do with Greece? What the Euro-Meisters are figuring out is, it’s going to be very, very costly to keep the currency union together. If not impossible. Because although not spoken about in polite company. And spun to the contrary. Italy, France and Spain are in big trouble with their massive debts.
The hope was that Europe would fix itself and grow out of it’s financial crises. Well it has not. In fact, things are getting pretty ugly in Euro-land. Reality is dawning that there is no way to grow out of this.
Banks and Funds the world over are in extreme risk of the coming European sovereign nation debt default. European countries (Greece, Spain, Italy and Portugal) pay some of the highest interest rates in the world. Greek debt pays as high as 24% and until they officially default, it’s still sovereign debt.
Every fund and investment bank in the world holds 100 trillion dollars of soon to be worthless European and Greek debt. They scooped it up with both hands because of the sky high interest rate it pays… The truth is, none of them can afford to pay back the massive debt they issued. It’s not just the Greeks who are in a depression and entering default. The truth is, the sovereign debt of Greece, Spain, Italy, France and Portugal will never be paid back.
Why did the bankers loan the 100 trillion dollars to countries everyone knows are dead broke?. Why would our banker buddies, hedge funds and retirement funds buy debt in dead broke, sure to default European bonds?
The answer is, it’s all about the yield and the banking rules that let them hide bad debt till the day of reckoning. Because Greek and European debt is sovereign debt, funds and banks can book the profits now. They can leverage the shit out of the debt and show impressive returns. If your friendly bank trader or your retirement fund manager buys safe, secure, sure to pay U.S. Government treasuries he only gets a yield of 2%.
He cannot keep his job doing that, he has to outperform US yields. If he buys safe debt instruments, he under performs and that means he joins the hundred thousand bankers losing their jobs each and every year.
The pressure to perform is enormous. See the game? What they are not telling you is, the Greek debt default chain reaction is about to begin. If they throw Greece out of the Euro, there will be hell to pay. And to keep Greece in the EU will cost them a trillion Euros. And if Greece declares it’s Euro debt, Drachma discounted debt, it’s lights out.
But it’s far worse than Greece leaving the currency union. Because Italy and Spain are not far behind. For centuries, countries that get into debt problems discount the currency and pay back creditors 10 cents on the dollar. I am sure you remember the Mexican currency devaluation of the 80′s. Investors got creamed.
There are many lessons to be learned from what is happening in Greece. First of all, you need to clearly understand how desperate things are.
According to the IMF, Greece needs another 50 billion in the next 3 years. That is overly optimistic to say the least. The IMF also said, the average debt maturity needs to be extended from the present 8 years to 40. Think about this. It’s untenable.
Now let’s look at what is happening on the ground in Greece. It is a modern day debt default. The first in this global deflation. There is a lot to be learned.
First of all, there has been no deflation. No wheel barrels of cash for a loaf of bread. Instead, just the opposite. A small envelope in cash lets you buy all the bread you want and they will throw in the bakery. There has been massive deflation. CASH is KING. In this case, if you were smart enough to stuff the First National Bank of your mattress, you are making a killing. The bargains are incredible. If you’ve got a little cash, you can buy bargains galore.
AND I HASTEN TO ADD THE “DISASTER HEDGE” GOLD HAS PLUNGED IN VALUED.
Look at the chart. Since the Greek crises has become public, gold, already on it’s recent lows has plunged. Look at the chart.
As you can see, Gold has plunged in value. Why? Because gold is telling you it’s a deflation, NOT,NOT,NOT an inflation.
The Greek crises is why the gold hucksters tell you that you need gold. They tell you government debt is massive and out of control. They tell you there will be a money panic. But as you can see, cash is king and gold is slowly plunging to it’s traditional low of $300.
ATM machines, when you can find one with any cash in it, gives you 60 Euros. Unless you have a foreign credit card and then you can get up to the limit of your card. Now if you go into a Greek business to cherry pick the bargains galore. You can’t give them a check obviously. And obviously they will take cash. But surprise surprise, they will also take your foreign credit card. I want you to think about it. We have seen this is often the case.
Let dead broke Greece go broke. Why keep the brain dead patient alive any longer? And the answer will surprise you. This is not about Greece.
What happens in Greece does NOT stay in Greece
In fact, the Greek crises spreads faster than an Ebola out break in a remote African village. The reason for what seems like stupid intransigence on the part of the IMF and the European Central bank, is not so stupid when you realize what’s next.
It’s about Portugal, Spain, Italy and maybe even France. All have sky, sky high unemployment. All have massive debts that they will never be able to pay back. All have economies, despite the spin, stuck on slow and slowing. And here is the punch line. All have suffering masses who are going to vote in anti-austerity candidates at their coming election.
And that brings down the German Empire know as the European Union. It’s all about money. The proposition is simple. If the Germans can force the masses to cough up every dime they have and live in abject poverty to save the Union, that’s what they want.
The EU experiment has failed. The debts are massive and the last thing the Germans want is a default. See, there are three ways to go here.
1. Bankrupt Germany and the worlds central banks as they come up with even more money to prop up southern Europe.
2. Bankrupt the worlds investment banks and funds as Mediterranean Europe devalues the debt they owe and go back to their pre-Euro currencies.
3. Their preferred method. Squeeze the shit our of the masses and reduce them to slaves, by confiscating their merger earnings to service their ever increasing debt load. This is about taxing them to death and stealing their retirements.
See, if they let Greek off the hook, the other dead broke European nations quickly follow. The stakes are enormous here.
This is all about the loan sharks squeezing the poor debtor. This gives new meaning to a pound of flesh and 4 pints of blood.
As you are seeing, the trading opportunities are stupendous. As are the lessons of how deflation’s work. We will be reporting to you Sunday night and Monday morning as we get results of the Greek referendum.
It’s my pleasure to guide you through this European debt crises. No matter the result, Greek and European debt will be deeply discounted and defaulted on. Whether they call it a default or not… There is no way around this fact of life. Sorry investment bankers and Funds.
Greek D-Day is here
Hi, Europe is in for a rough ride. This game has just gotten a hell of a lot more serious. Let me explain. The Europeans are pushing the Greeks against the wall HARD. And to their credit, the Greeks are pushing back. What Europe refuses to understand is, Greece is dead broke and no matter what they do, they will never be able to pay back the money they owe.
The IMF and the Central bank of Europe refuses to accept reality. And the reason is very simple. If they forgive the debt of Greece, then they will be forced to do the same for dead broke Spain and Italy.
The truth is, the IMF and the ECB can afford to cover Greece’s debt. Especially if they do it in stages. But it’s still a Trillion dollar hit. Here is the problem. The other dead beat European nations will not be far behind, demanding the same. The IMF and the ECB can’t afford to forgive the debt of Italy, Spain and maybe even France.
What the IMF and ECB fail to understand is, they have driven Greece to the breaking point. Instead of breaking point, Mr. Tsipras used the term humiliation.
“After five months of tough negotiations, our partners ended up with a proposal in the form of an ultimatum,” Mr. Tsipras said, arguing that the creditors were calling for “new, unbearable measures,” including cuts to pensions, salaries and tax increases.
“The goal of some of Greece’s partners is the humiliation of an entire nation,”
What has upped the ante in the game is something that happened Saturday. In an unexpected move, Prime Minister Alexis Tsipras went on national television early Saturday to call for a referendum on July 5, so that Greek citizens can decide whether to accept or reject the terms of a bailout deal proposed by the country’s creditors. The Greek parliament approved a referendum calling for a vote so the citizens of Greece can decide their fate.
Mr. Tsipras said, he was calling a referendum because Greece’s creditors — the I.M.F., the European Central Bank and the Eurozone countries — had refused to negotiate in good faith and present a fair compromise.
Read that as a referendum on a Greek exit from the Eurozone. It’s a very cleaver move. He put it to the Greek people this way. Chose to accept further draconian taxes and a severe cut back in government services and a huge cut in pensions. Or to reject the ECB demands.
What is not being said publicly is, Greek Prime Minister Mr. Tsipras is forcing the Europeans hand. If the citizens of Greece rejects (a most likely event) the austerity that the IMF is demanding, they will be in default. Loans will not be paid back.
A chain of defaults in the world banking system will occur. More importantly the new loans Greece needs will not be funded. In essence, Greece will be booted out of the European Union. And Spain and Portugal and Italy will not be far behind.
We have been warning about this for years. Kicking and screaming along the way, Southern Europe will be leaving the currency and banking union.
The only question is, when and how chaotic the exit will be. And that my friends depends on the super egos that rule Europe. The powers that be are out of touch with reality.
It is a very interesting and very dangerous game the Greeks are playing here. What happens in Greece threatens the entire European Union and the global financial system. And here is why. A chaotic default and exit will create a global economic crisis. And the IMF and the ECB damn well know it.
I have prepared for you a tape of my disaster master scenario I see on the near horizon. Please listen to it carefully. You don’t want to miss this. Because a Greek default will bring chaos to the world banking and financial system.