Tag Archives: Fed intervention

Brexit To Catalyze Economic Collapse?

The global financial system is collapsing – not just Europe. If the Central Banks stepped away from both their observable and covert money printing, the system would collapse tomorrow. Brexit is not the catalyst and it’s not the cause. Brexit is nothing more than the cover story – the device used to deflect the public’s attention away from truth.

The truth is that the western Central Banks (let’s leave China aside for now) have created the biggest asset bubble in history. And the time has come for it to pop. It’s been a divisive, albeit brilliant, wealth confiscation mechanism.

Elijah Johnson invited me onto his Finance and Liberty podcast show to discuss Brexit, precious metals and the ongoing systemic collapse, which will be more catastrophic than the 2008 collapse financial crisis:

One of the immediate consequences of the BREXIT has been the “gating” of six UK property investment funds. Investors threw money at these funds and helped inflate a massive property bubble in the UK, similar to the one in the U.S. And now investors are trapped because the funds are unable to sell illiquid, overvalued real estate in order to meet redemptions. The same exact process will occur in the U.S. My view is that investors in mutual funds will get what they deserve because blogs like mine have been warning about this for several years now.

On another note, one of the stocks featured in my Mining Stock Journal is up over 7% today. It’s trading at a market cap that is about 10% of the potential valued of this Company’s primary gold property. It also looks like one of its strategic investors is starting to make a move to eventually acquire the entire Company. New subscribers to my Mining Stock Journal currently receive all of the back-issues when they subscribe, including the above-described company which was an early pick and is still highly undervalued. You can subscribe by clicking here: Mining Stock Journal.

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U.S. Economy Appears To Be Headed For The Cliff

Dallas Fed Manufacturing Outlook for February plunged to -11.2 from -4.4 in January.  Wall Street Einsteins were expecting -2.8;  Philly Fed Survey fell to 5.2 vs. 8.2 expected but the 6-month outlook “index” plunged to 29.7 from 50.9 December; the Empire State Fed survey was weaker than January but the “new orders” index fell to 1.22 from 6.09 and future business expectations plunged from 48.3 to 25.58.  Everyone already knows that retail sales were negative in December (-.9) and January (-.8) – that’s with inflation – real retail sales (better measure of unit volume) were even more negative.

I wrote an article for Seeking Alpha in which I make the case that the U.S. economy is headed into a recession, if we’re not technically in one already.   You can read the article here:  The U.S. Economy May Be Headed For A Big Collapse.

This is an excellent graphic portrayal of the current situation in the U.S.  economy.  “U.S. Macro” is an index compiled by Bloomberg which measures the difference between the economic data as reported vs. the consensus estimates for that data (click to enlarge):

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By now I think almost everyone knows that the Fed has been pushing the stock market inexorably higher on a sea tide of printed money.  I think everyone understands that history has shown that market interventions always fail.  When the stock market intervention fails, it will trigger a collapse that will likely make the 1929 crash look tame…