How Much Death and Destrution Awaits Us in 2018?

The New Year is one full of economic, political, and war threats.
Among the economic threats are stock, bond, and real estate markets artificially pumped up by years of central bank money creation and by false reports of full employment. It is an open question whether participants in these markets are aware that underlying reality does not support the asset values. Central banks support stock markets not only with abundant liquidity but also with direct stock purchases. The Japanese central bank is now one of the largest owners of Japanese equities. Central banks, which are supposed to provide economic stability, have created a massive fraud.
Throughout the Western world politics has degenerated into fraud. No government serves the public’s interest. (See: ) Except for some former Soviet satellites in Eastern Europe, European governments have defied the will of the people by admitting vast numbers of refugees from Washington’s wars and others pretending to be refugees. The European governments further imperil their citizens with their support for Washington’s rising aggression toward Russia. The universal failure of democratic politics is leading directly to war.

This post was published at Paul Craig Roberts on December 30, 2017.


Bubble Watch: The Fed KNOWS We’re in a 1999-Type Mania

The Fed raised rates another 0.25% the week before last.
This marks the 5th rate hike since the Fed embarked on its policy tightening in December 2015 and the fourth rate hike in the last 12 months. The Fed’s latest statement also indicates it plans on raising rates three more times in 2018.
It is easy to gloss over the significance of this, but the Fed’s actions are indeed unusual; other major Central Banks (the Swiss National Bank, Bank of Japan, European Central Bank and Bank of England) are all currently running QE programs (the BoJ, ECB and BoE) or openly printing new money to buy stocks outright (the SNB).
What precisely is the Fed doing? Why the urge to tighten when other banks are all printing new money by the billions?
The following quotes from Fed offer us clues.
Fed Monetary Policy Report, June 2017:
‘Forward price-to-earnings ratios for equities have increased to a level well above their median of the past three decades,
Fed minutes, July 2017:

This post was published at GoldSeek on 26 December 2017.


Is Bitcoin Demand Hurting The Price Of Gold?

The popular narrative that has gripped the financial media searching for reasons that the price of gold is sluggish for reasons other than overt western manipulation, is that Bitcoin interest is diverting cash that would otherwise be going into gold. However, I would argue that the type of trading funds playing in the cryptocurrency ‘sandbox’ is little more than ‘action junkies’ looking for anything to buy with high upside velocity. These ‘investors’ never buy gold other than perhaps chasing gold-related securities when the price of gold speeds higher in price (like from early 2016 through August 2016). In fact, a recent report attributes a large amount of recent volume in Bitcoin trading to Japanese retail traders / Japanese men dominate Bitcoin trading (Deutshe Bank)
Seeking Alpha has published my analysis explaining just some of the reasons that the idea that cryptocurrencies are diverting capital away from going into physical gold is little more than anti-gold propaganda.

This post was published at Investment Research Dynamics on December 15, 2017.


The Results of Financialization – Part IV – A Fiat Currency Failure

By Gordon Long
Since the US lifted anchor on the Gold Standard in August 1971 making the US Dollar a Fiat Reserve Currency, the US economy has been propelled forward, no-longer tethered to the principles of Sound Money. Unfortunately, the reality is that this sort of political expediency is the equivalent of building a house on a foundation of sand versus solid bedrock, dooming it to be unable to withstand the economic storms and turmoil that inevitably lie ahead.

As a consequence International Balance of Payments were by 1980 forced to be settled through the use of credit. Credit which then exploded in growth with the mounting US trade deficits financed by Foreign and Japanese mercantilism, where the BOP settlement credit was used to buy US Treasuries, thereby triggering a steady fall in interest rates.

This post was published at GoldSeek on Friday, 8 December 2017 / Friday, 8 December 2017.