We caught up with Martin Armstrong just before the holiday and the start of September. Martin says beware of early September, it may be a buying opportunity and a temporary new high. The world is a complete mess and that means the flow of funds are headed to Wall Street. Where else can large institutions park their Trillions? It’s the only game in town.
Get ready for electronic currencies. Your paper cash will literally become trash shortly and the world’s governments want it that way. Think of the billions more in taxes they’ll be able to extract. The day of the $10,000 bill is gone and soon the $100 bill will follow. Perhaps Bitcoin will be banned as well, it all remains to be seen. Just get ready for what’s next.
We also discussed Martin’s proprietary system Socrates, to which he’s devoted a large portion of his resources and his life. The system takes the emotion and opinion out of forecasting, tracing the flow of funds and confidence, thereby providing and unbiased forecast on what’s next. Sounds like an ad for the Financial Survival Network!
Jack Duffy is currently a trial attorney from Ft. Worth, Texas. We had a great talk about the JFK Assassination, an interest we both shared, as Jack was in second grade and I was in first grade on that fateful day. He has spent the last 40 years researching the important facts surrounding the JFK assassination. This includes interviewing several key witnesses that were part of the assassination investigation. This also includes doctors who treated Kennedy at Parkland Hospital.He became interested in the JFK assassination in the early 1970′s after seeing a copy of the Zapruder film at a friend’s house.
His parents attended the breakfast on November 22, 1963 in Ft. Worth where President Kennedy gave his last speech. Mr. Duffy was in the second grade at Bruce Shulkey elementary school in Ft. Worth when he heard that President Kennedy had been shot. Over the last 40 years he has researched the JFK assassination and interviewed many key witnesses including several Parkland surgeons who treated JFK. He has collected and read almost every book on the JFK murder and has one of the largest private collections on the assassination. In 1998 he decided to write a book about time travel and the JFK assassination conspiracy. His book was 90% complete when he heard about Stephen King’s time travel book “11-22-63.” Mr. Duffy’s book, ”The Man From 2063″ is about a lawyer who travels through time back to 1963 and prevents a well organized conspiracy from killing JFK. The book draws on Mr. Duffy’s deep knowledge and personal research and is therefore based on actual events and people surrounding the assassination.
Personal finance expert, author and advisory Heather Wagenhals says that the way our brains are wired makes us all susceptible to scams like the IRS refund fraud. You get that unexpected call from the Government and they really do want to help you; all you have to do is give them your bank account and routing number and they’ll send money. The next thing you know, your account has been cleaned out. Heather gives common sense tips for avoiding this scam and so many others. Trust but verify; rather than assume that everyone is out to take you, simply demand verification when anyone requests information that could cost you if it fell into the wrong hands. That way you’ll stay safe and you won’t have to become cynical.
The current bubbles in financial assets — in equities and bonds of all grades and quality — raging in every major market across the globe are no accident.
They are a deliberate creation. The intentional results of policy.
Therefore, when they burst, we shouldn’t regard the resulting damage as some freak act of nature or other such outcome outside of our control. To reiterate, the carnage will be the very predictable result of some terribly shortsighted decision-making and defective logic.
The Root of Evil
Blame can and should be laid where it belongs: with the central banks.
There is nothing remotely “normal” about the echo-bubble’s rise, and we can anticipate that its deflation will be equally abnormal.
Conventional wisdom on the resurgence of the housing markets takes one of two paths:
1. Housing is not in a bubble, it is merely returning to “normal”
2. Housing is bubbly in some markets, but prices will continue to rise
Here’s an alternative view: housing is in an echo-bubble that’s popping. Courtesy of the excellent Market Daily Briefing, here are some charts that make the case that the housing echo-bubble was just another Federal Reserve-induced speculative asset bubble that’s popping, like every other speculative bubble in recorded history.
“Every man,” argued the philosopher William Godwin, “has a certain sphere of discretion, which he has a right to expect shall not be infringed by his neighbours. This right flows from the very nature of man.” Market anarchists agree with Godwin and thus oppose the state simply as one specific example of invasion or aggression against peaceful individuals. After all, by definition, governments must aggress against innocents just to exist. As soon as we subject government to the same moral rules and standards to which we subject every other individual or group, we see at once that government is the foremost lawbreaker and evildoer acting in society. As Murray Rothbard argued in his classic libertarian manifesto For a New Liberty, since we “make no exceptions” to general morality for the state, we must “simply think of the State as a criminal band,” an organization of plunder seizing tribute from peaceful, productive society. The state presents us with no good or compelling reason why it ought to enjoy the prerogative of killing, stealing, and doling out special privileges to its courtiers at the expense of legitimate free market actors. Presented with a nation blighted by the sequelæ of past state misdeeds, our overlords nevertheless assure us that the only way forward is to entrust the political elite with more power still.
Russian soldiers and Ukrainian soldiers are now shooting at each other in eastern Ukraine. Could this conflict ultimately lead us down the road to World War 3? This week, a very robust force of “tanks, artillery and infantry” has opened up a “third front” in the Ukrainian civil war in a part of southeastern Ukraine that had not seen much fighting yet. Exhausted Ukrainian forces are suddenly being pushed back rapidly and many outsiders are wondering how the nearly defeated rebels were able to muster such impressive military strength all of a sudden. But it really isn’t much of a mystery. The tanks, artillery and infantry came from inside Russia. In recent days, Ukrainian units have captured ten Russian paratroopers and there have even been funerals for Russian paratroopers that have been killed in action back home in Russia. Even though it has become exceedingly obvious that Russia is now conducting a stealth invasion of Ukraine, Vladimir Putin is still choosing to deny it. But if he did publicly admit it, that would be even more dangerous. Barack Obama would be forced into a position of either having to do something about the Russian invasion or look weak in the eyes of the public. And as the Russians have already shown, they are more than willing to match any move that the Obama administration makes.
The United States, wallowing in arrogance and hubris, pretends to be “the world’s sole superpower,” the “exceptional and indispensable nation” chosen by history to exercise hegemony over the world. In truth, the US is the two-bit punk puppet of the Israel Lobby. If the Zionist government orders Washington to eat dog excrement, Washington eats it.
Not even the Chairman of the Joint Chiefs of Staff of the US Military could get the facts acknowledged that Israel’s attack on the USS Liberty in 1967, which made casualties of most of the crew, was not a “mistake,” but the intentional act of destruction of a US Navy vessel and its crew.
Not even state universities in the hinterlands of America are independent of the Israel Lobby, which can determine tenure and hiring decisions independently of the decisions of faculty and deans.
First Russia and China, then UAE, Egypt, and Turkey… and now it appears Germany (following a phone call with Putin) is pulling the rug out from under US hegemony – just as Obama’s warmongery ramps up…
*MERKEL SAYS U.S. CAN’T SOLVE ALL THE WORLD’S PROBLEMS ANYMORE
Which is odd because just yesterday, President Obama (who never lies) stated “The United States is and will remain the one indispensable nation in the world…“ adding that “no other nation can do what we do.” Perhaps he is wrong?
Today one of the legends in the business warned King World News that we are living in a world that is teetering on the brink. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about some of the shocking events that are taking place across the globe, including the spreading of the incredibly dangerous and deadly Ebola virus.
Barron: “There a few macro-events people need to be aware of that the mainstream is not covering. The first is that the euro seems to be falling apart. The French government fell this week. So they have had a major cabinet reshuffle in France. Marine Le Pen of France’s National Front Party has said that if she wins the next election the first thing she is going to do is take France out of the euro….
Stock markets could be heading for a “scary” crash that may wipe up to 60pc off the value of the world’s leading companies, an analyst has warned.
Just a day after Amercia’s S&P 500 index closed above 2,000 for the first time, Abigail Doolittle, founder of Peak Theories Research, said the Federal Reserve’s reluctance to raise interest rates from record lows could spark a market correction to rival the slump seen in 2007, during the global recession.
“Unfortunately, I think it could come on a crash similar to what happened in 2007,” she told CNBC. “You can see that the entire bull market trend over the past five years has started to reverse.
The relationship between those who are constantly watched and tracked, and those who watch and track them, is the relationship between masters and slaves. – Chris Hedges
Below you will find an extremely powerful and inspiring speech by Chris Hedges. The award winning journalist has been ahead of the curve on many issues of national and global importance, including being one of the earliest critics of the Iraq war. Chris has an unshakable moral compass and a passion to match it. He has been a shining light in a sea of darkness and cowardice when it comes to public figures speaking truth to power, including having led the charge to sue the Obama administration on the right toimprison American citizens without trial.
Argentina defaulted last month for the second time in 13 years after the country was blocked from making debt payments because President Cristina Fernandez de Kirchner refused to comply with a U.S. judge’s order to also pay about $1.5 billion to a group of holdout creditors from an earlier default in 2001. Creditors including Elliott Management Corp., which is demanding payment in court, refused to accept losses of about 70 percent in debt restructurings following the earlier default and have spurned subsequent offers on similar terms.
Has there ever been an administration that has had more disdain for the U.S. military than the Obama administration? The way that this administration treats our veterans and the way that this administration is gutting our armed forces is absolutely shameful. As you will read about below, Obama and his minions have been purging the military of officers that do not agree with their agenda, they have labeled veterans returning from overseas wars as “potential terrorists”, and they have turned our military into a playground for political correctness and social experiments. Not that Obama has been afraid to use the military. In fact, he has sent troops more places than just about any other president in U.S. history. He is running our brave men and women into the ground at the same time that he is relentlessly reducing the size of the Army, Navy and Air Force. As a result, our armed forces are smaller, weaker, more spread out and less prepared for a major war than at any other time in recent memory. Please share this article with as many people as you can. The American people deserve to know the truth. The following are 18 signs that the Obama administration is openly hostile to the military…
[Editor’s Note: Non-profits are often unfairly maligned as being “creations of government.” In this Mises Daily article from 2006, Karen De Coster disagrees.]
Nonprofit organizations play an integral role in a free market economy. The establishment of a voluntary nonprofit organization is not merely an exercise for obtaining tax-exempt status for wealth protection within a burdensome tax system, though that is a splendid end in its own right.
Instead, nonprofit organizations are concerned with generating explicit betterments of all types, on a volunteer basis — including such inclinations as the advancement of ideas, the promotion and safeguarding of cultures and religions, charitable giving, and the guardianship of historical treasures.
In a very real sense, it is fractional reserve banking and not money itself that is the root of so many of today’s evils. Whenever fractional reserves are permitted, the banking system – including the one that exists today throughout the world – comes to resemble a classic Ponzi scheme which can only function as long as most people don’t try to get at their money.
Yesterday, Wall Street’s self-regulator, the Financial Industry Regulatory Authority (FINRA), charged Citigroup with cheating its customers out of fair prices on preferred stock trades — 22,000 times. Citigroup was fined a meager $1.85 million, ordered to pay $638,000 in restitution, allowed to neither deny or admit the charges, and sent on its merry way to loot the next unwary investor.
Why do we believe there will be more charges of malfeasance in Citigroup’s future? Because it is an unrepentant recidivist. Yesterday’s FINRA fine was the 408th fine that FINRA has levied against Citigroup Global Markets or its predecessor, Smith Barney, for trading violations, market manipulations or failure to supervise its traders or brokers.
According to Lenin, the Soviet government rested “directly on force, not limited by anything, not restricted by any laws, nor any absolute rules.” (V.I. Lenin, “A Contribution to the History of the Question of the Dictatorship,” October 20, 1920, in Collected Works, 4th Russian edition, p. 326.)
In the 21st century the US government has echoed Lenin. No laws, domestic or international, restrain the US from torture. Laws do not prevent the US from attacking sovereign countries or from conducting military operations within the borders of sovereign countries. Constitutional protections and due process do not prevent the US from detaining citizens indefinitely or from murdering them on suspicion or accusation alone.
IMF chief Christine Lagarde has been put under formal investigation by French magistrates for alleged negligence in a political fraud affair dating from 2008 when she was finance minister.
Lagarde was questioned by magistrates in Paris this week for a fourth time under her existing status as a witness in the long-running saga over allegations that tycoon Bernard Tapie won a large arbitration payout due to his political connections.
Under French law, magistrates place a person under formal investigation when they believe there are indications of wrongdoing, but that does not always lead to a trial.
It’s Wednesday morning and sovereign debt yields – U.S. Treasuries included – are again plumbing multi-year or in some cases all-time lows; as globally speaking, the “most damning proof yet of QE failure” couldn’t be more plain to see. In other words, from East to West, fixed income markets are anticipating “QE to Infinity” amidst the worst economic backdrop – and outlook – of our lifetimes. Part and parcel of such madness, everyone from money managers to corporate treasurers (as exemplified by record largely debt-funded stock repurchases) to sovereign wealth funds themselves are piling into stocks at record valuations, yielding an MSM mania comprising the worst imaginable aspects of 1999 and 2007 – and ironically, thanks to record margin debt, the lowest investor “net worth” ever recorded!
Precious metals — compared with stocks and real estate — are cheap right now. They’re despised by most investors and narrowly owned. Yet they still make an ideal inflation hedge going forward.
Of all the precious metals, silver is the best bargain. We are more than three years beyond a dramatic spike to $50 per ounce in early 2011. Prices have hovered around $20 for the past year. Sentiment among traders is in the dumps. A recent Market Vane survey says the percentage of respondents bullish on silver in the mid-$20s is near a 10-year low.
Meanwhile, the monetary backdrop for silver and gold remains very bullish. The Federal Reserve may talk of tightening… but whatever tightening they do won’t be like past cycles. Plus, other central banks around the world remain as loose as they’ve ever been.
Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.
…the promise of central bank funny money, which is really all that’s needed these days to send investors into a tizzy and to keep the longest bull market in recent history ascending into the stratosphere.
The market is giving itself another congratulatory pat on the back this week as the S&P flirts with the 2000 point territory. Another week, another high. Another month, another psychological market barrier crashed through with abandon.
[...] So what is it this time? The discovery of some new abundant source of safe, clean energy? An invention that will increase productivity by orders of magnitude? Soaring demand on the back of a solid across-the-board economic recovery? Sadly, no, it’s just more Hope and Change-ium from the central banking crowd.
This time it’s European Central Bank chief Mario Draghi delivering the market its much needed jolt of central bank funny money. Or, more accurately, the promise of central bank funny money, which is really all that’s needed these days to send investors into a tizzy and to keep the longest bull market in recent history ascending into the stratosphere. At the annual conclave of central bankers (is that technically called a “coven”?) in Jackson Hole, Wyoming last week Draghi said that the ECB was preparing to use “all the tools at its disposal” to boost Eurozone inflation rates up to their 2% target if prices continue to grow in the 0.3-0.4% range as they have so far this year. Translation for the stimulus-hungry investor: KA-CHING!
We all know the market is rigged. We may not like it, but facts is facts. The world’s largest central banks have thoroughly rigged the game. They figured out they could do it and they have QE an instrument of market manipulation, particularly stock market manipulation, since 2009. On the surface, the idea was to promote “Trickle Down.” Only it doesn’t work. The trickle pools at the top.
Eventually the lack of trickle forms a bulging bubble and display of wealth disparity becomes so great that even central bankers, who are difficult to shame, become embarrassed enough to stop pumping it to even greater extremes. Only, when you prick a bubble, it doesn’t just gradually drain out. It explodes like the goo spewed on a mirror from a giant pustulous teenaged facial boil when squeezed.
Today King World News interviewed the former White House official who was Special Assistant to the President of the United States for Economic Policy and a former member of the U.S. President’s Working Group on Financial Markets, also known as the Plunge Protection Team, or PPT. While in the White House, Dr. Philippa “Pippa” Malmgren served as financial market advisor in the White House and functioned as the direct liaison between the White House and the Federal Reserve.
Dr. Malmgren formerly headed the Global Asset Management business for Bankers Trust in Asia, out of Hong Kong, and was also Chief Currency Strategist for Bankers Trust Company, and former Head of Global Investment Strategy at UBS. Dr. Malmgren was also a senior consultant to Deutsche Bank, and currently advises the largest sovereign wealth funds, hedge funds, and pension funds in the world.
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