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Tuesday, January 19, 2016

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saveyourassetsfirst3


Gold Quiet Amid the Chaos

Posted: 19 Jan 2016 12:23 PM PST

Won’t Get Fooled Again

Posted: 19 Jan 2016 12:05 PM PST

Then I'll get on my knees and pray We don't get fooled again   Submitted by Keith Weiner, Monetary Metals:  There is a great lyric in Won't Get Fooled Again by The Who: Then I'll get on my knees and pray We don't get fooled again Remember last week, when the price of silver spiked? […]

The post Won't Get Fooled Again appeared first on Silver Doctors.

Yamana Gold: Is It All Bad News?

Posted: 19 Jan 2016 11:49 AM PST

Tuesday Morning Miners Massacre – Epic Metals Attack Imminent?

Posted: 19 Jan 2016 11:30 AM PST

This could lead to a BIG attack on gold/silver, so brace yourself…   Submitted by PM Fund Manager Dave Kranzler:  Something very ominous is brewing behind the scenes.  It is systemic and related to a ongoing credit collapse behind "the curtain."  The indicators are right in front of our eyes, regarded with indifference by a zombified, […]

The post Tuesday Morning Miners Massacre – Epic Metals Attack Imminent? appeared first on Silver Doctors.

Dow Falls Another 364 Points, Now Down 2200 Points From The Peak Of The Market

Posted: 19 Jan 2016 11:15 AM PST

It was another day of utter carnage on Wall Street…    From Michael Snyder, The Economic Collapse Blog:  The Dow was down another 364 points, the S&P 500 broke below 1900, and the Nasdaq had a much larger percentage loss than either of them.  The Russell 2000 has now fallen 22 percent from the peak, […]

The post Dow Falls Another 364 Points, Now Down 2200 Points From The Peak Of The Market appeared first on Silver Doctors.

Someone Is Lying…

Posted: 19 Jan 2016 10:30 AM PST

The Fed, or Tyler Durden?    Submitted by Bill Holter, JSMineset:  “Someone is lying?” is a humorous title because in today’s world this could pertain to nearly anything. In this case I am speaking of the Dallas Fed and the banks they oversee. As you know, Zerohedge wrote last Friday of the Dallas Fed. They […]

The post Someone Is Lying… appeared first on Silver Doctors.

Gold short term price and cycle forcast

Posted: 19 Jan 2016 10:18 AM PST

Commodity Trader

THIS IS IT. The Margin Call, The Meltdown, THE COLLAPSE IS HERE! – Bill Holter

Posted: 19 Jan 2016 10:05 AM PST

"This is it. We're watching the meltdown. This is history being made… The margin call, the meltdown, we're watching it in real time… I guess the best way to look at where we are right now is, we're standing at the gates of Hell."

The post THIS IS IT. The Margin Call, The Meltdown, THE COLLAPSE IS HERE! – Bill Holter appeared first on Silver Doctors.

Federally Funded Think Tank Explains How U.S. Government Could Attack Decentralized Digital Currencies

Posted: 19 Jan 2016 10:00 AM PST

The RAND report goes one step further…and suggests that governments should use advanced technical means to actively disrupt virtual currencies.   Submitted by Michael Krieger, Liberty Blitzkrieg:  That includes terrorist groups, but also peaceful deployments of digital currencies by other non-state actors, and a general war on privacy and encryption. According to the RAND analysts, […]

The post Federally Funded Think Tank Explains How U.S. Government Could Attack Decentralized Digital Currencies appeared first on Silver Doctors.

The Last Silver Empire?

Posted: 19 Jan 2016 09:00 AM PST

Like the Roman Empire, The United States has paid for its welfare/warfare state by debasing its currency. The decline and fall of the Roman Empire occurred over centuries, how long will the U.S. Empire last? Submitted by Smaulgld: In the "Decline and Fall of the World's First Silver Empire" we noted that the Roman Empire's […]

The post The Last Silver Empire? appeared first on Silver Doctors.

Wells Fargo’s Problem Emerges: $17 Billion In Junk Energy Exposure

Posted: 19 Jan 2016 08:30 AM PST

In retrospect, we can see why the Dallas Fed told banks to stop marking assets to market…   From Tyler Durden, Zerohedge:  When Wells Fargo reported its Q4 earnings last week, the one topic analysts and investors wanted much more clarity on, was the bank's exposure to oil and gas loans, and much more color […]

The post Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure appeared first on Silver Doctors.

Ready for World War III with China?

Posted: 19 Jan 2016 08:00 AM PST

With the constant drumbeat that Armageddon is imminent, it is easy to dismiss the geopolitical threats that pose a realpolitik danger. Submitted by James Hall, BATR:   The prospects that definite weapons of mass destruction will engulf the planet in a nuclear winter are upon us once again. After the collapse of the Soviet evil […]

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Bank of America Has $21.3 Billion In Energy Exposure

Posted: 19 Jan 2016 07:27 AM PST

In the aftermath of Citi and JPM’s earnings last week, the only thing investors wanted to know about when it came to the just released Bank of America earnings moments ago, was the bank’s energy exposure…   From Tyler Durden, Zerohedge:  The full disclosure, as little as it may be, on the bank’s commercial portfolio […]

The post Bank of America Has $21.3 Billion In Energy Exposure appeared first on Silver Doctors.

Gold Prices Slip, Weaker Than Equity Slump Warrants as China Confirms GDP Slowdown

Posted: 19 Jan 2016 05:22 AM PST

Bullion Vault

Mike Tyson – Sage Financial Advisor

Posted: 19 Jan 2016 03:02 AM PST

gold.ie

The Oil Crash Of 2016 Has The Big Banks Running Scared

Posted: 18 Jan 2016 04:44 PM PST

Running Scared - Public DomainLast time around it was subprime mortgages, but this time it is oil that is playing a starring role in a global financial crisis.  Since the start of 2015, 42 North American oil companies have filed for bankruptcy, 130,000 good paying energy jobs have been lost in the United States, and at this point 50 percent of all energy junk bonds are “distressed” according to Standard & Poor’s.  As you will see below, some of the big banks have a tremendous amount of loan exposure to the energy industry, and now they are bracing for big losses.  And the longer the price of oil stays this low, the worse the carnage is going to get.

Today, the price of oil has been hovering around 29 dollars a barrel, and over the past 18 months the price of oil has fallen by more than 70 percent.  This is something that has many U.S. consumers very excited.  The average price of a gallon of gasoline nationally is just $1.89 at the moment, and on Monday it was selling for as low as 46 cents a gallon at one station in Michigan.

But this oil crash is nothing to cheer about as far as the big banks are concerned.  During the boom years, those banks gave out billions upon billions of dollars in loans to fund exceedingly expensive drilling projects all over the world.

Now those firms are dropping like flies, and the big banks could potentially be facing absolutely catastrophic losses.  The following examples come from CNN

For instance, Wells Fargo (WFC) is sitting on more than $17 billion in loans to the oil and gas sector. The bank is setting aside $1.2 billion in reserves to cover losses because of the “continued deterioration within the energy sector.”

JPMorgan Chase (JPM) is setting aside an extra $124 million to cover potential losses in its oil and gas loans. It warned that figure could rise to $750 million if oil prices unexpectedly stay at their current $30 level for the next 18 months.

Citigroup is another bank that also has a tremendous amount of exposure

Citigroup (C) built up loan loss reserves in the energy space by $300 million. The bank said the move reflects its view that “oil prices are likely to remain low for a longer period of time.”

If oil stays around $30 a barrel, Citi is bracing for about $600 million of energy credit losses in the first half of 2016. Citi said that figure could double to $1.2 billion if oil dropped to $25 a barrel and stayed there.

For the moment, these big banks are telling the public that the damage can be contained.

But didn’t they tell us the same thing about subprime mortgages in 2008?

We are already seeing bank stocks start to slide precipitously.  People are beginning to realize that these banks are dangerously exposed to a lot of really bad deals.

If the price of oil were to shoot back up above 50 dollars in very short order, the damage would probably be manageable.  Unfortunately, that does not appear likely to happen.  In fact, now that sanctions have been lifted on Iran, the Iranians are planning to flood the world with massive amounts of oil that they have been storing in tankers at sea

Iran has been carefully planning for its return from the economic penalty box by hoarding tons of oil in tankers at sea.

Now that the U.S. and European Union have lifted some sanctions on Iran, the OPEC country can begin selling its massive stockpile of oil.

The sale of this seaborne oil will allow Iran to get an immediate financial boost before it ramps up production. The onslaught of Iranian oil is coming at a terrible time for the global oil markets, which are already drowning in an epic supply glut.

Just the other day, I explained that some of the biggest banks in the world are now projecting that the price of oil could soon fall much, much lower.

Morgan Stanley says that it could go as low as 20 dollars a barrel, the Royal Bank of Scotland says that it could go as low as 16 dollars a barrel, and Standard Chartered says that it could go as low as 10 dollars a barrel.

But the truth is that the price of oil does not need to go down one penny more to have a catastrophic impact on global financial markets.  If it just stays right here, we will see an endless parade of layoffs, energy company bankruptcies  and debt defaults.  Without any change, junk bonds will continue to crash and financial institutions will continue to go down like dominoes.

We are already experiencing a major disaster.  Things are already so bad that some forms of low quality crude oil are literally selling for next to nothing.  The following comes from Bloomberg

Oil is so plentiful and cheap in the U.S. that at least one buyer says it would pay almost nothing to take a certain type of low-quality crude.

Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch's industrial empire, said it offered to pay $1.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a corrected list of prices posted on its website Monday. It had previously posted a price of -$0.50. The crude is down from $13.50 a barrel a year ago and $47.60 in January 2014.

While the near-zero price is due to the lack of pipeline capacity for a particular variety of ultra low quality crude, it underscores how dire things are in the U.S. oil patch.

A chart that I saw posted on Zero Hedge earlier today can help put all of this into perspective.  Whenever the price of oil falls really low relative to the price of gold, there is a major global crisis.  Right now an ounce of gold will purchase more oil than ever before, and many believe that this indicates that a new great crisis is upon us…

The number of barrels of oil that a single ounce of gold can buy has never, ever been higher.

Barrels Of Oil Per Ounce Of Gold

All over the planet, big banks are absolutely teeming with bad loans.  And to be honest, the big banks in the U.S. are probably in better shape than some of the major banks in Europe and Asia.  But once the dominoes start to fall, very few financial institutions are going to escape unscathed.

In the coming days I would expect to see more headlines like we just got out of Italy.  Apparently, Italian banks are nearing full meltdown mode, and short selling has been temporarily banned.  To me, it appears that we are just inches away from full-blown financial panic in Europe.

However, just like with the last financial crisis, you never quite know where the next “explosion” is going to happen next.

But one thing is for sure – the financial crisis that began during the second half of 2015 is raging out of control, and the pain that we have seen so far is just the beginning.

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