Thursday, October 20, 2016

Gold World News Flash

Gold World News Flash

East Vs. West Division Is About The Dollar - Not Nuclear War

Posted: 19 Oct 2016 11:00 PM PDT

Submitted by Brandon Smith via,

The interesting thing about working in alternative economics is that inevitably you will become the designated buzzkill. You may be presenting the facts on the ground and the reality behind the numbers, but most of what you have to report will not be pleasant. Alternative economists are doomed to be labeled “doom and gloomers.” And that’s okay…

The truth is what it is, and sometimes it hurts people obsessed with undue positivism and bull market naivety. However, as bad as we seem to be when it comes to a negative outlook, we do not necessarily present the most ugly options on the table.

There is an undeniable trend by some within the liberty movement to assume a Mad Max-style end game to our ever expanding house of cards. That is to say, they see the only plausible outcome being apocalyptic in nature, and nuclear holocaust fits well within this viewpoint. In many cases, the argument is sometimes presented that WWIII is in the best interests of global elites seeking a catalyst for their so-called “new world order.”

This is not to say that I don't think WWIII is a possibility; it certainly is.  But I remain rather skeptical of the usefulness of nuclear war for the elites. Primarily because everything they openly claim they hope to accomplish can be accomplished without nukes.

The narrative of a coming conflict between the East and the West has been boiling steadily as the U.S. election nears its end. Even the mainstream media is insinuating the potential for shots fired. Some believe the results of the election will determine the odds of war. I hold a different position. It seems to me that the rhetoric of East vs. West and nuclear exchange is being exploited as a distraction away from a different but almost equally catastrophic end game — the death of the U.S. dollar as the world reserve currency.

First, let’s be clear; nuclear war does little to serve elitist interests. Consider the fact that globalists have been working diligently since 9/11 to install a vast electronic surveillance infrastructure in major cities around the world. This includes a pervasive video surveillance presence, biometric data collection, facial recognition, voice fingerprinting, etc. This is not only occurring in the U.S. and Europe, but in China and Russia. Vladimir Putin signed the Orwellian “Yarovaya Package” into law in June in Russia putting into motion an electronic surveillance apparatus directly on par with any measures exploited by the NSA. Perhaps ironically, even Edward Snowden, currently living in Russia under asylum, criticized the amendments.

The point is, an elaborate and costly digital control grid is being built all around us. It makes very little sense for the elites to achieve such a level of full spectrum awareness and then flush it down the tubes in a 1.2 megaton blink of a eye. Keep in mind that a nuclear exchange also includes the targeting of military satellites — everything surveillance worthy will most likely be thoroughly toasted.

Another issue to consider is the psychological underpinnings of elitism. Elites generally exhibit psychopathy, but it is a psychopathy driven by narcissism rather than nihilism. Narcissists tend to shy away from self destruction and the destruction of the treasures they believe they are entitled to. The elites want total centralization of power and influence, and they want the masses to accept or even demand a system in which globalism becomes sacrosanct. They want the Earth, and they want it nice and pristine for themselves. They might be willing to sacrifice certain appendages of the system, but they are not intent on vaporizing the entire prize.

Given, psychopaths also do not like to lose. They do have a propensity for attempting to take others down with them if they are on the verge of failure. That said, I think the recent reports of the demise of globalism are greatly exaggerated.

The narrative of coming world war revolves around certain assumptions. For example, some liberty proponents argue that the success of the Brexit referendum, the Trump campaign and the rise of sovereignty movements are an existential threat to the globalist empire. In their minds, a nuclear war triggered by the elites at this stage makes sense because globalism does appear to be “losing.”

As I outlined in my last article Global Elites Are Getting Ready To Blame You For The Coming Financial Crash, this is simply not the case. In fact, the rise of conservative and sovereignty movements in the West sets the stage perfectly for the elites to initiate the final act of a world changing fiscal crisis. With these conservative movements in “power,” the ongoing economic collapse can then be blamed on “dangerous populists” rather than the international bankers that created the problem to begin with.

The globalists are not on the run, they are playing the Hegelian dialectic game as they always have; problem, reaction, solution.

And, as I have evidenced and outlined in great detail in numerous articles, the “conflict” between East and West is an engineered sham. At the top of the political and financial pyramids of every major nation, including Russia and China, the elites promote globalism and a one world currency under the control of the International Monetary Fund. Putin has openly supported IMF dominance of the global financial structure and the implementation of the SDR as a bridge to a global currency system. Chinese officials have done the same, and as of October, China is a major liquidity amplifier for the SDR. The BRICS bank, which was supposed to be a counterweight to the IMF and World Bank, actually works in collusion with the IMF and World Bank. The bottom line? There is no East versus West, at least not where the elites are concerned.

The Russians and the Chinese are NOT on our side.  They are not even on their own side. The only legitimate opposition to the globalists is in the form of grassroots movements with very little concrete political influence. Whatever political influence we do gain tends to be quickly co-opted by deceitful measures and false leaders that ultimately serve the elites. Even the Brexit and a Trump presidency are not a real threat because they are functions of a system that the elites control in the absolute, and they would never be allowed to gain traction unless the elites needed scapegoats for a greater economic crisis.

Our fight has so far been one of disseminating information and countering propaganda; political battles have been rather fruitless. So, again, nuclear war hardly serves the interests of elites under these favorable conditions.

Nuclear war is also a very poor way of managing the darker goals of globalists. Their desire for substantial population reduction, for example, could be attained far more efficiently through economic collapse and mass starvation rather than the use of missiles and bombs. Food is a better weapon than smashed atoms ever will be. But if the false East/West paradigm is not setting the stage for nuclear war, then what is it being used for?

As I have examined in the past, the division between East and West far better serves the elites in their effort to slowly but surely unseat the U.S. dollar as the world reserve currency and replace it with the SDR basket — the next major step towards a single global currency system and a single global monetary authority.

Let’s be clear, the globalists are NOT pro-dollar or pro-America. They never have been. In fact the Federal Reserve has been destroying the dollar’s purchasing power since the central bank’s inception. And, by asserting the dollar as the world reserve currency, the Fed has actually placed America in a position of severe financial weakness rather than strength. Our dependency on the dollar’s world reserve status to sustain our living standards is so complete that the loss of that status will indeed crush our country. Our system cannot function without reserve status.

I’ll break it down even further; through the death of the dollar, the elites not only set in motion the chaos needed to justify total centralization and a world currency alternative, but in the process they also could remove the greatest threat to their control — those millions of American citizens still holding to conservative ideals of sovereignty and personal liberty.

The East vs. West paradigm creates a perfect rational for the end of the dollar’s reserve status. Just look at the geopolitical trends in motion.

Saudi Arabia with its vast influence over many OPEC nations is shifting away from the U.S. and building closer ties with Russia and China. The distancing of relations between the U.S. and the Saudis is even being encouraged in the U.S. through the passage of the 9/11 Saudi lawsuit bill. This will inevitably lead to the end of the dollar’s petro-status and, by extension, aid in the end of its world reserve status.

Turkey is now gravitating towards Russia and away from NATO after the very odd and most likely staged “coup” that has given Erdogan unprecedented room for dictatorship. This new relationship may even include military support from Russia.

Foreign central banks around the world, including Saudi Arabia and China, are currently liquidating their U.S. treasury holdings at record pace.  The program for "de-dollarization" is already well underway.

The U.S. overall has also lost considerable goodwill among the peoples of the world (or what little goodwill it had left) in the wake of revelations that it along with allies has essentially instigated the breakdown in Syria and funded militant groups that make up the skeleton of ISIS. The continued function of our involvement in destabilizing Syria has no other benefit to the U.S. except to undermine the image of America. It does not give us increased oil dominance. It does not give us increased regional dominance. In fact, our presence in Syria only continues to harm us and bring us into dangerous proximity with Eastern interests.

There are people who do benefit from this dynamic — the globalists.

The U.S. is painted as the bumbling villain of our little story, greedy and blinded by visions of empire. The East is set up as the more rational party, the mediator trying to reason with Western madmen. For the globalists, the death of the dollar, which has been an ongoing project of theirs for decades, can now be completed, and they will receive NO blame whatsoever. History, if it is written by anyone other than liberty champions, will say that the East, not the central bankers, destroyed the dollar’s reserve status because it had to. History will say that we had it coming.

In the aftermath, the elites hope to come to the rescue as global economic instability erupts with the failure of the dollar system. As they openly admit in The Economist in 1988, the dollar must be replaced by the IMF’s Special Drawing Rights; the new world order needs a great financial reset before it can take root. But, this is a much different methodology from widespread nuclear war.

Questions arise as to November’s election and how this might affect East vs. West relations. I see no indication that it makes a difference who ends up in the White House as far as the economic result is concerned. As I have stated before, I believe Trump is the most likely candidate. Relations with the East are already in irreversible and engineered decline and even if Trump has good intentions, the globalists will pull the plug on financial support to markets not long after he enters the Oval Office. Eastern nations have been preparing for a break from the dollar for years. They work closely with the IMF. If anything, Trump’s presence will accelerate the reset.

I think the notions of nuclear war and East vs. West conflagration endure for many reasons. An extreme distaste for Barack Obama has led many liberty proponents to assume that the man will never give up his seat of power. These people do not understand that Obama is nothing more than a Muppet, a middleman with no true influence. The elites do not need him in office to continue their program.

Others assume that the mere chance of a Trump presidency is so dangerous to the elites that they would rather push the nuclear button than risk it. I think this is a bit naive. As stated in past articles, conservative movements are gaining control of a ship that is already sinking. They are being set up. A Trump win might help the elites. If the U.S. economy and currency collapses under Trump, conservative movements can be blamed. If they collapse under Clinton, the banking cabal will be blamed. It seems clear to me which option better serves elitists.

A nuclear war is also perhaps subconsciously enticing to some people. The idea that the slate could be wiped clean leaving only the prepared to come out of the smoke and ash to rebuild could in some ways be considered a preferable outcome. Compare that to liberty movements taking the blame for an economic calamity while battling against an encroaching globalist machine, sacrificing for years or possibly decades on the mere chance that we can, through force of will and ingenuity, defeat a well organized empire with an established mass surveillance network and millions of duped citizens on its side.

Hell, I’m actually an optimist when it comes to our ability to overthrow globalism, but I see no easy way out of this situation. I find it saddening that the coming fight is so frightening to people that they would rather assume a nuclear nightmare is on the way. The slower agony of economic decay and a rebellion against Big Brother may be less appetizing, but in my view, it is unavoidable.

Debate Post-Mortem: "Bad Hombres", "Putin Puppets", Chris Wallace Wins "Bigly"

Posted: 19 Oct 2016 07:41 PM PDT

The debate started with 'no handshakes' once again and while there was no 'dancing' around the ring, a quiet, polite start rapidly turned ugly once the two candidates warmed up. Second Amendment supporting Trump slammed babyslaying Clinton; questions over who was the biggest "puppet"; Trump declined to support election result and threw a "such a nasty woman" comment across the stage.  While it was a close-call between Trump and Hillary, for once we suggest Chris Wallace wins tonight.




No Handshake....

*  *  *

Round 1 - SCOTUS - Clinton Win

  • Trump subdued, focused on Pro-life, second Amendment, defending constitution
  • Clinton better able to discuss details, knows constitutional court details better.

Round 2 - IMMIGRATION - Trump Win

  • Trump pushed stronger borders, Clinton focused on "ripping families aprt"
  • Clinton claimed Trump choked on the wall.
  • Clinton pivot to blame Russia for leaks on 'open borders' thrown back in her face.
  • Argument over who is 'puppet'

Round 3 - THE ECONOMY - Tie

  • Hillary claimed "will add no debt" - which as we know means no growth.
  • Trump slams NAFTA, more of the same Obama policies with Clinton


  • Sexual harrassment allegations denied aggressively.
  • Wikileaks documents and pay-to-play hard to argue with.
  • Why does Hillary take Saudi money when they kill gay people?
  • Trump focused on donors/special interests when Hillary brought up taxes.
  • "Rigged" discussion well argued by Trump but Hillary made him look 'whiney' and his comment "I will leave you in suspense" did not sound good.

Round 5 - FOREIGN HOTSPOTS - Trump Win

  • Hillary claims she will defeat ISIS, Trump attacks by pointing out 'element of surprise'.
  • Hillary eloquent, Trump less hawkish.
  • Using WikiLeaks, Trump lands one of his cleanest blows of the night. "John Podesta said some horrible things about you. And he was right."

Round 6 - NATIONAL DEBT - Trump Win (Hillary un-credible)

  • Focused on Obamacare costs to start
  • Clinton tax wealthy but no growth
  • Trump "massive tax cuts"
  • Biggest lie of the night Clinton: "I pay for everything I'm proposing. I do not add a penny to the national debt."



Finally, Mexican Peso settled it...


But then someone panic bid Peso to 'prove' Hillary won?


But of course, just as we started the day...

*  *  *


Second Amendment

  • Clinton mind-blowingly talked about dark-money in politics and its effects on the election.

Clinton: "There's no doubt that I respect the Second Amendment."



Clinton: "I respect the tradition of gun ownership," but we must have "reasonable regulation"


Hillary Clinton said she supports the Second Amendment while touting the need for comprehensive reform to the nation's gun laws.

"I see no conflict between saving people's lives and defending the Second Amendment," she said.

The Democratic nominee called for comprehensive background checks and closing the gun show lope hole.


Trump: "Justice Ginsburg made some very, very inappropriate statements toward me"









"There are some bad hombres here and we're going to get 'em out"




Clinton attempted to pivot away from being pinned on immigration to raising Russia...

“You are very clearly quoting from WikiLeaks,” Clinton said. “What is really important about WikiLeaks is that the Russian government has engaged in espionage against Americans. They have hacked American websites, American accounts of private people, of institutions. Then they have given that information to WikiLeaks for the purpose of putting it on the internet. This has come from the highest levels of the Russian government.”
Clinton called on Trump to reject “Russian espionage.”


Trump shot back: “That was a great pivot off the fact that she wants open borders.”

Clinton called Trump "a puppet"...


He responded...






  • Hillary: "I wont add a penny to the debt"



"She totally lied about TPP... she did call it the gold standard"...


"I am going to renegotiate NAFTA"






Clinton belittles women...


Clinton: "While I was monitoring the Osama bin Laden raid, he was hosting The Apprentice"...


When Clinton took aim at past violence at Trump's rallies, he shot back by saying "she caused the violence." He's referencing new videos from conservative filmmaker James O'Keefe, whose newly-released hidden camera footage purports to show Democratic operatives plotting chaos at a Trump rally in Chicago. O'Keefe has been accused in the past of using selectively-edited video and duping interviewees.


Clinton Foundation a criminal enterprise...





Definitely a problem for Trump...





Using WikiLeaks, Trump lands one of his cleanest blows of the night. "John Podesta said some horrible things about you. And he was right."

"Whatever happened to the element of surprise?"



Quickly focused on Obamacare costs


Has World War 3 Already Started?

Posted: 19 Oct 2016 05:10 PM PDT

Submitted by Nick Giambruno via,

It took 3 million soldiers, 3,000 tanks, 7,000 artillery pieces, and 2,500 aircraft…

“Operation Barbarossa” was the code name for Nazi Germany’s invasion of the Soviet Union in 1941.

It was the largest military operation in human history.

The Nazis had already conquered most of Europe. Hitler had grown overconfident from his recent military victories. Now he was hunting for big game… Stalin’s USSR.

Throughout history, many European invaders, including Napoleon, suffered monumental defeats when they took on Russia. Despite this, Hitler thought he could succeed where they had failed.

The idea was to inflict a total defeat on the Soviets in a matter of months, before the notoriously brutal Russian winter began.

At first, it looked like the Germans might succeed. The Soviets were taken by surprise and were disorganized.

But those initial victories wouldn’t be enough. Thanks to stubborn resistance and a seemingly inexhaustible supply of Soviet troops, Operation Barbarossa stalled.

The Germans didn’t make it to Moscow before winter. The ruthless cold weather would prove to be a far more effective weapon than anything in the Soviet arsenal. Hitler’s hopes of quickly taking out the USSR perished in the brutal cold. It ultimately turned the tide of the war against Germany.

But the Soviet victory cost millions of lives. By the end of the war, the Soviets had lost over 20 million people. Some estimate they lost many millions more. By comparison, the U.S. lost around 400,000 people.

So, it shouldn’t be surprising that the Russians get a little prickly when a foreign military starts marching toward their borders.

And recently… for the first time since Operation Barbarossa, German tanks are once again advancing on Russia’s border.

You probably haven’t heard this extraordinary piece of news. That’s because the mass media has basically ignored and obscured it. They’ve been busy covering far more important things… like transgender issues and Kim Kardashian’s latest stunt.

That’s why I want to tell you about Operation Anaconda 2016.

It’s the largest war game in Eastern Europe since the end of the Cold War. It’s essentially a rehearsal to secure a quick NATO victory in the event of war with Russia.

It was launched from Warsaw, Poland, recently and involves 31,000 NATO troops.

Operation Anaconda 2016 is one of the most important stories you’re not hearing about. It shows how perilously close the world is to another global war.

I found out about Operation Anaconda 2016 while in Warsaw with Doug Casey earlier this year.

(Incidentally, Poland is one of the cheapest, enjoyable countries I’ve ever been to. A 30-minute taxi ride from the middle of Warsaw to the airport is only $5. You’ll be hard-pressed to find an entrée in one of the nicest restaurants for over $15.

Poland does not use the European currency, the euro. It has its own currency, the zloty. And the zloty’s weakness is a big reason Poland is so inexpensive today. By the way, “zloty” means “gold” in Polish. But the currency has no tie to gold. It’s just a paper currency, like the dollar and euro are.)

Operation Anaconda 2016 is controversial even within NATO. German Foreign Minister Frank-Walter Steinmeier recently said:

Whoever believes that a symbolic tank parade on the alliance’s eastern border will bring security is mistaken. We are well advised to not create pretexts to renew an old confrontation.

Although Steinmeier said Operation Anaconda 2016 is symbolic, he failed to mention exactly what it symbolizes.

First, an anaconda is a giant snake. It kills its prey by squeezing it. From the Russian perspective, they’re the ones who feel squeezed. This is precisely what the U.S. has been doing by fomenting so-called colored revolutions in Ukraine and Georgia (both on Russia’s periphery) and trying to absorb them into NATO.

Second, this unprecedented “tank parade” on Russia’s borders symbolizes nothing less than World War 3.

(Doug Casey: It’s provocative, and actually quite insane. The Western media paints the Russians as the aggressors, which—let me shock you by saying this—is the opposite of the truth. Russia is an economic minnow, producing nothing but oil and gas, and mostly unprofitably, at current prices. Its population is in permanent decline, and it’s actually a disintegrating empire with a dozen secession movements. Its only serious industrial sector is manufacturing weapons, but even the most advanced Sukhois and MiGs (like the F-22 and F-35) are artifacts of a bygone era. The Russians aren’t in a position to threaten anyone—entirely apart from the fact that conquering neighboring countries no longer makes sense. In today’s world, you’re no longer acquiring an asset to be looted, but taking on a liability.

As for NATO, it’s outlived its usefulness by over 25 years. The huge military bureaucracy is just a hammer in search of a nail. It should be abolished before it gets everyone in a lot of trouble.)

Russian President Vladimir Putin has reacted to Operation Anaconda 2016 with alarm. At a recent press conference, he warned Western mainstream media journalists that the world is sleepwalking into World War 3, saying:

We know year by year what’s going to happen, and they know that we know. It’s only you that they tell tall tales to, and you buy it, and spread it to the citizens of your countries. Your people in turn do not feel a sense of the impending danger—this is what worries me.

How do you not understand that the world is being pulled in an irreversible direction? While they pretend that nothing is going on. I don’t know how to get through to you anymore.

U.S. politicians like to use Putin as a piñata to show how tough they are. Hillary Clinton has declared Putin to be the new Hitler. This is the kind of thinking that fueled Operation Anaconda 2016.

Now, we’re not referees charged with deciding which political players are good guys and which are bad guys.

However, the portrait of Putin as a Hitler or a crazy man leading his country toward disaster—the picture you get from the mainstream media and from many politicians—is suitable only for propaganda posters.

I don’t give two you-know-whats about what happens in Eastern Europe, except to the extent it might spark World War 3 and cause us to get vaporized in a nuclear exchange.

Albert Einstein once said, “I know not with what weapons World War 3 will be fought, but World War 4 will be fought with sticks and stones.”

*  *  *

It’s always been true, as Bourne said, that “war is the health of the State.” But it’s especially true when economic times get tough. That’s because governments like to blame their problems on outsiders; even an imagined foreign threat tends to unify opinions around those of the leaders.

Since economies around the world are all weakening, and political leaders are all similar in essential mindset, there’s good reason to believe the trend toward World War 3 is accelerating.

Unfortunately, there’s little any individual can do to practically change the trajectory of this trend in motion. The best you can and should do is to stay informed so that you can protect yourself in the best way possible and even profit from the situation.

That’s exactly why New York Times best-selling author Doug Casey and his team just released an urgent video. Click here to watch it now.

Mexico Orders Banks To "Stress Test" For A Trump Victory

Posted: 19 Oct 2016 04:59 PM PDT

It's official: Donald Trump is now a systemic threat.

As part of the Mexican stress test, alongside more traditional calamities such as recession, economic crisis, and market crash, the Mexican financial authorities have ordered local banks to assess the potential impact of Donald Trump winning the U.S. presidential election, Reuters reports. Citing six bank sources, Reuters says that alongside a "normal" annual stress test, the banks were asked to conduct an additional test to examine the macroeconomic effects and volatility resulting from a potential Trump victory on Nov. 8.

The local regulator, the Financial System Stability Board (CESF) said that as a result of the ongoing risk surrounding the U.S. election and an expected tightening in Federal Reserve monetary policy, it had examined the results of stress tests of the country's financial system. "These exercises showed that the banking sector maintains adequate levels of capital and liquidity to face adverse scenarios," the CESF, which includes representatives from the Finance Ministry, the Bank of Mexico and the banking regulator CNBV, said in its statement.

However, while the rest of the stress test is largely fluff, what Mexico really wanted to know is what happens to local banks if Trump becomes president in 19 days: as a result the tests "were specifically aimed at modeling the possible impact of a Trump victory over Democratic candidate Hillary Clinton, the latest example of the panic the Republican candidates campaign has induced in Mexico."

Among other things, Trump has vowed to rewrite the North American Free Trade Agreement if he wins, and build a southern border wall that Mexico would pay for. Fears that Trump could take the White House have also weighed on the peso which is down nearly 8 percent so far this year.  Trump was in Mexico City briefly in August for a highly contentious visit that led to widespread criticism of Mexican President Enrique Pena Nieto and helped precipitate the resignation of then finance minister Luis Videgaray, who was seen as the architect of the meeting.

Still, Mexico is far less nervous than it was just a month ago: one of the banking sources told Reuters that Trump's recent collapse in the polls following a string of groping accusations had helped calm concerns that he might win. Of course, the reason why S&P futures traded limit down on the night of Brexit is because just like now, the outcome was taken for granted by all involved, with virtually all polls guaranteeing the preferable outcome.

It remains to be seen if Trump can repeat the Brexit shock.

Gold Miners: The Lull before the Calm before the Storm

Posted: 19 Oct 2016 03:56 PM PDT


As the final presidential debate looms one wonders if we will hear anything of substance or be subjected to a continuous barrage of ‘soap opera’ style chit chat. Hilary Clinton’s lead is increasing according to the bookies with the latest odds at 1/5 and Donald Trump at 9/2. The sooner this is over the better for all of us as the uncertainty will have been removed and we can get back to business as usual. Whatever the result both candidates are big spenders and so we can expect many more dollars to be printed which will help support gold in dollar terms. However we should also be cognoscente of the fact that the other major currencies are all in dire straits, the Yen, Euro and British pound are all looking weak, which in turn is supportive of the dollar, rendering the dollar as the best looking horse in the glue factory, as they say.

read more.....


Posted: 19 Oct 2016 03:30 PM PDT

 Join Internationally Recognized Prophecy Expert, Minister, Speaker and Author, Paul McGuire as he examines current events under the lens of Bible Prophecy. Every Monday through Friday 4 - 6 PM Eastern Time on "THE PAUL McGUIRE REPORT." The Financial Armageddon Economic Collapse Blog...

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Clinton Scandals -- Wikileaks Releases Another 1,800 Podesta Emails

Posted: 19 Oct 2016 03:00 PM PDT

Wikileaks Releases Another 1,800 Podesta Emails - Clinton Scandals - America's Newsroom The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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A “Black” Anniversary for a “Black Swan”

Posted: 19 Oct 2016 02:26 PM PDT

This post A "Black" Anniversary for a "Black Swan" appeared first on Daily Reckoning.

"Happy anniversary!" Jim Rickards tweeted this morning, giving our old friend Mr. Market a good razzing.

Happy anniversary to what? "Black Monday."

On this date in 1987 — 29 years ago — the Dow plunged 22.6%. 508 jolly points in one day. The Dow's biggest one-day percentage drop ever.

"The equivalent today," Jim noted, "would be a one-day 4,106 point drop to 14,055."

The big question: 29 years later, is history planning a sequel? Consider…

Citibank's tea leaf and bird entrails readers recently cooked up a chart. It compared this month's S&P with October 1987's. Not the Dow, mind you. And it's only through the 7th. But still. Here it is:


A perfect match? No. But close enough to arch an eyebrow or three on Wall Street.

Some argue the chart's phantom. Stocks blasted higher in almost vertical fashion to start 1987. The S&P was up about 40% by the end of September, leaving stocks "extremely stretched." Too much. Too fast. Due for a wallop.

This year, in contrast, stocks tripped out of the gate for their worst start in history. The S&P is only up about 6% for the year in light of January's swoon. Stocks have a firmer toehold on the ladder this time.

So… Is another Black Monday lurking?

We don't know. And analysts see a face in every cloud if they look hard enough. But there's something odd about Black Monday we just can't shake out of our hair…

The strange thing about Black Monday, as we first noted in July, is it never should have happened. Not just in the sense that regulators were snoozing on the job or some gasket blew somewhere. No. It literally never should have happened…

It was almost statistically impossible.

Charlie Bilello is director of research at Pension Partners LLC. He studied Black Monday. And his research shows Black Monday was such a freak of nature, such a purple unicorn, it was "simply not ever supposed to happen, in the history of the universe."

It has to do with what statisticians call "standard deviations from the average." The lower the standard deviation, the more common the event. The higher the standard deviation, the rarer the event.

Take your typical bell curve. As Scientific American puts it, "In a perfect bell curve, 68% of the data is within one standard deviation of the mean, 95% is within two, and so on."

Three sigmas would include 99.7% of the data. And Bilello says the likelihood of a five standard deviation event is "essentially zero" on any given day.

So… if the chance of a five standard deviation event is "essentially zero" on any given day… what on Earth do we make of a 17 standard deviation event?

That was Black Monday. A 17 standard deviation event.

Seventeen standard deviations means it never should have happened. Not in the history of the universe. But it did… 29 years ago… today.

Did God pull a joke on the market that day? Was it just some bizarre midnight collaboration of chance? Or are markets somehow more prone to "black swans" than the laws of chance suggest? Maybe the latter. Bilello:

"[Markets] operate in the world of fat tails, exhibiting large skewness… This is a fancy way of saying extreme events (high standard or 'sigma' moves) are much more likely to occur than a normal distribution would predict."

The market is a whirling delirium of complexity. Even more so now than 1987. And that's the thing…

Jim Rickards pioneered the study of complexity theory and its applications to markets. His conclusion? Markets are increasingly susceptible to "black swan" events as their complexity grows:

One formal property of complex systems is that the size of the worst event that can happen is an exponential function of the system scale. This means that when a complex system's scale is doubled, the systemic risk does not double; it may increase by a factor of 10 or more… This kind of sudden, unexpected crash that seems to emerge from nowhere is entirely consistent with the predictions of complexity theory. Increasing market scale correlates with exponentially larger market collapses."

In case you glided past it: "When a complex system's scale is doubled, the systemic risk does not double; it may increase by a factor of 10 or more."

Then Jim brings the ax down on the root: "As systemic scale is increased by derivatives, systemic risk grows exponentially."

The derivatives market in 1987 was a pimple compared with today's. And today's derivatives market dwarfs that of 2008. With Jim's "complexity multiplier," could it be that today's market risk is not just higher… but exponentially higher than 1987?

Something to ponder of a fair October evening…

"Globalization… creates interlocking fragility," says author and statistician Nassim Nicholas Taleb, "while reducing volatility and giving the appearance of stability. In other words, it creates devastating Black Swans. We have never lived before under the threat of a global collapse."

Now we do.


Brian Maher
Managing editor, The Daily Reckoning

Ed. Note: The most entertaining and informative 15-minute read of your day. That describes the free daily email edition of The Daily Reckoning. It breaks down the complex worlds of finance, politics and culture to bring you cutting-edge analysis of the day's most important events. In a way you're sure to find entertaining… even risqué at times. Click here now to sign up for FREE.

The post A "Black" Anniversary for a "Black Swan" appeared first on Daily Reckoning.


Posted: 19 Oct 2016 02:00 PM PDT

 end times, end times signs, end times news, end times events, bible prophecy, prophecy in the news, tornado, earthquake, strange weather, strange events, apocalyptic signs, apocalyptic events, strange weather phenomenon The Financial Armageddon Economic Collapse Blog tracks trends and...

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Gold Daily and Silver Weekly Charts - The Lid Is Still On the Metals

Posted: 19 Oct 2016 01:37 PM PDT

Video: Voter Fraud Exposed - Stuart Varney

Posted: 19 Oct 2016 01:03 PM PDT

Video: Voter Fraud Exposed - Stuart Varney The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Donald TRUMP's Final Message to AMERICA !

Posted: 19 Oct 2016 12:30 PM PDT

 Economic collapse and financial crisis is rising any moment.Getting informed about collapse and crisis may earn you, or prevent to lose money. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists ,...

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Jim’s Mailbox

Posted: 19 Oct 2016 12:02 PM PDT

Jim/Bill, Interesting viewpoint on the dollar’s demise. I wonder how many people have given any thought to this concept? There have been articles over the past week noting the flight out of money market funds, primarily due to restricting regulations in times of stress. When you need your dollars most, they will be become unavailable.... Read more »

The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset.

China Plays the Long Game Against the Dollar

Posted: 19 Oct 2016 11:50 AM PDT

This post China Plays the Long Game Against the Dollar appeared first on Daily Reckoning.

The Chinese economy has been taking a beating on exports, imports and its monetary status around the world. But reality shows strategic moves for global competition. You'd be forgiven for thinking China's yuan is headed for the trash heap!

It seems like every headline on the subject is about how the Chinese currency is falling to record lows.

Here's Seeking Alpha recently:

Seeking Alpha China

And Bloomberg:

bloomberg china goldman

And Fortune:

fortune china

But the truth of the matter is very different. Everyone should've expected a weaker Yuan all along. Because it's all part of a greater plan to make the yuan more popular around the world.

China officially entered the Special Drawing Rights (SDR) "currency club" held by the International Monetary Fund on October 1. At that point, the long term strategy that James Rickards identified as currency wars had begun.

This world money move is one of a series of phases that China views as an opportunity to incentivize use of its currency for international transactions. This matters because the Chinese currency could overtake staple currency systems (dollar, euro, etc.) as the primary currency when conducting trades, global exchanges or major business loans.

The entrance of the Chinese economy and the yuan into the IMF "basket" is a significant move into the exclusive currency club.  The yuan is the first currency added to SDR since the euro in 1999, though that was only to replace the phased-out Deutsche mark and French franc.

This move follows being rejected by the IMF in 2010 to be included in the elite currency club.  At the time, the IMF deemed that China "does not currently meet the criteria to be a freely usable currency."

Even before China entered the world money scene, it was making strides to symbolically make its mark in the IMF currency basket.  The World Bank sold hundreds of millions of SDR-denominated bonds on auction in China’s interbank market in August.

This marked the first SDR based currency auction in more than thirty years.  Not surprisingly, the auction was rolled out by the World Bank in Shanghai and received mass media coverage from nearly every major state run outlet.

Only two weeks after the yuan's inclusion in the SDR, Chinese banks began taking going in on the new world money opportunities. Standard Chartered Bank (Hong Kong) announced was approved by the People's Bank of China to be the first commercial issuer of bonds to be denominated in SDRs within the national interbank bond market. At its current offering approval from the government that is an estimated about 925 million yuan ($138 million).

“The inclusion of the renminbi helps reduce the volatility of SDR’s exchange rate" noted Wesley Yang to China Daily, "and therefore makes the value of SDR more stable. This not only increases the attractiveness of SDR as a reserve asset but also makes it a better investment and financing tool." Mr. Yang is head of financial markets at Standard Chartered Bank in China.

In September, the Chinese central bank designated an official Chinese clearing and settlement bank to be based in New York City.  This filling is the first of its kind for China, a renowned recluse in the international monetary markets.

The effect?

"The establishment of a clearing bank in the US will promote the growth of renminbi activity in the US and help accommodate an increase in volumes and demand for renminbi products and services," said former Treasury Secretary, Timothy Geithner.

working group us rmb trading

Members of the Working Group on U.S. RMB Trading and Clearing, June 28th in New York

In conehead-speak, this means the following:

Clearing banks can now offer offshore trading and cross-border payments in Chinese currency because they have exclusive access to China's onshore foreign market exchange and. in doing so it allows these clearing banks to provide liquidity to offshore operations.  

[takes deep breath] Phew…

The plain english translation?

The Chinese currency is going global. It's built a system so that more countries use the yuan for trade and savings. And it's done so to directly compete with the U.S. dollar as the major reserve currency.

Swift, one of the top currency trend organization's, reported in its 2015 Worldwide Currency Usage and Trends report that, "While accounting for a relatively small proportion of worldwide international currency usage, the Chinese yuan (CNY) or renminbi (RMB), is nonetheless experiencing a stellar ascension…"

Yet, as author and former IMF wonk, Barry Eichengreen, asked bluntly, "Should we care?"

Whether or not you do, he graciously answered his own question, "the Chinese certainly do. In Beijing, where I was late last month, joining the rarefied SDR club was all people wanted to talk about."

From there, explains MarketWatch analyst David Marsh, "the world's second-largest economy is embarking, pragmatically but steadily, toward enshrining a multicurrency reserve system at the heart of the world's financial order"

There are still many moons between now a potential U.S dollar fall…

But you heard it here first: The chess match on the world money battlefield has only just now heated up.


Craig Wilson, @craig_wilson7
for The Daily Reckoning

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The post China Plays the Long Game Against the Dollar appeared first on Daily Reckoning.

Michael Savage destroys Muslim on air!!!

Posted: 19 Oct 2016 11:00 AM PDT

Best seller 'The People vs Muhammad' is now ON SALE at Amazon for up to 17% off the retail price!!! Get your copy today, stocks are limited! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers...

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Oliver Stone on freedom of speech, Hillary’s hacks and CIA cinema (Going Undergroud)

Posted: 19 Oct 2016 10:30 AM PDT

 We speak to award winning director Oliver Stone about the hacking of Hillary, CIA backed cinema, and the British government's bank that appears to be trying to stop you from watching this program. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,...

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As The World Crumbles, Gold And Silver Sit Inertly

Posted: 19 Oct 2016 10:02 AM PDT

Miles Franklin

Countdown To The Final Debate - The Alex Jones Show - 10/19/2016

Posted: 19 Oct 2016 10:00 AM PDT

 Donald Trump was hired to get Clinton in to office, its all part of the game, your being fooled, if trump cares about you where was he 20 years ago The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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Posted: 19 Oct 2016 09:30 AM PDT

 If this shocking video doesn't open an investigation, nothing will... The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Steve Quayle Economic collapse will be on December 31, 2016

Posted: 19 Oct 2016 09:05 AM PDT

 Economic collapse and financial crisis is rising any moment.Getting informed about collapse and crisis may earn you, or prevent to lose money. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists ,...

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Gold doesn’t care who wins the US Election

Posted: 19 Oct 2016 06:49 AM PDT

Founder, USAGOLD and author of The ABCs of Gold Investing – How to Protect and Build Your Wealth with Gold “Gold prices have enjoyed a hefty climb so far this year as the market continues to guess the pace and timing of the next U.S. interest-rate hike, but the battle for the U.S. presidency is set to take center stage as Election Day nears. And it doesn’t matter if Republican Party nominee Donald Trump or Democratic Party nominee Hillary Clinton moves on to be the next president of the United States—gold is likely to come out a winner, George Milling-Stanley, head of gold investment strategy at State Street Global Advisors.” –– Myra Saefong/MarketWatch/10-19-2016

Attention Please: Phase Two of the Gold and Silver Train Now leaving the Station. All Aboard?

Posted: 19 Oct 2016 06:37 AM PDT

Phase One began in January 2016, and slowed down from July until early October.  (Charts in this commentary are courtesy, unless indicated).

Gold in India trades at premium for first time in 9 months, dealers say

Posted: 19 Oct 2016 05:28 AM PDT

By Rajendra Jadhav
Wednesday, October 19, 2016

Gold prices in India swung to a premium for the first time in nine months today as jewellers and dealers in the world's No.2 consumer of the metal ramped up purchases ahead of major festivals.

Dealers were charging up to $2 an ounce over official domestic prices, the first time premiums have been seen since mid-January, said Bachhraj Bamalwa, director at the All-India Gems and Jewellery Trade Federation.

Gold importers have traditionally charged premiums to mitigate risks they take due to currency and price fluctuations.

But the precious metal had been trading at a discount for most of this year due to weaker-than-usual demand and a rise in smuggling. Discounts hit a record high of $100 an ounce in July. ...

... For the remainder of the report:


13.4 Trillion Reasons Why New BMG Silver BullionFund
Makes Sense for Investors Looking for a Safe Haven

Company Announcement
Monday, October 17, 2016

TORONTO, Ontario -- Bullion Management Group Inc., a Canadian pioneer in precious metals investing, has expanded its line of bullion funds with the launch of BMG Silver BullionFund. The new fund invests exclusively in physical silver bullion. It is designed for investors seeking to add silver to their precious metals investments that offer long-term security and potential capital growth.

BMG Silver BullionFund is an open-end mutual fund trust that can be purchased and redeemed daily at net asset value and is eligible for TFSA, RRSP, and RESP investments.

Nick Barisheff, president and CEO of BMG, believes that there are several important reasons why investors looking for a safe haven are adding bullion to their portfolios. He observes that $13.4 trillion of government bonds worldwide now offer yields below zero. ...

For the remainder of the announcement:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Help GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

ECB urges EU to curb virtual money for fear of losing control

Posted: 19 Oct 2016 05:23 AM PDT

By Francesco Canepa
Tuesday, October 18, 2016

FRANKFURT, Germany -- The European Central Bank wants EU lawmakers to tighten proposed new rules on digital currencies such as bitcoin, fearing they might one day weaken its own control over money supply in the euro zone.

The European Commission's draft rules, aimed at fighting terrorism, require currency exchange platforms to increase checks on the identities of people exchanging virtual currencies for real ones and report suspicious transactions.

In a legal opinion published on Tuesday, the ECB said EU institutions should not promote the use of digital currencies and should make clear they lack the legal status of currency or money. ...

... For the remainder of the report:


K92 Mining Begins Gold Production at Kainantu Mine

Company Announcement
Wednesday, October 5, 2016

K92 Mining Inc. is pleased to announce that gold production has commenced from the Irumafimpa gold deposit.

Ian Stalker, K92 Chief Executive Officer, says: "This milestone is highly significant for our company, and for this region of Papua New Guinea. A great deal of thanks goes to the entire team on site in PNG in achieving production ahead of schedule and on budget. The rehabilitation of the Irumafimpa gold mine, process plant, and associated infrastructure commenced in late March and is now complete. As an enhancement of the processing facility, we are also pleased to note that the installation of a new drum scrubber is also nearing completion and commissioning of this will be completed by the end of the month. ..."

...For the remainder of the announcement:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Help GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

Silver, Debt, and Deficits: From an Election Year Perspective - Gary Christenson

Posted: 19 Oct 2016 05:00 AM PDT

Sprott Money

GDX Gold Stocks Chart of the Day

Posted: 19 Oct 2016 04:17 AM PDT

GDX has now completed a weekly swing barring a complete reversal the rest of the week. This deep into an intermediate decline a swing stacks the odds heavily in favor of the correction being over. The metals should now rally for the next 3-4 months.

How Will the Election Outcome Impact Precious Metals?

Posted: 19 Oct 2016 03:07 AM PDT

By Clint Siegner writes: Metals investors wonder what this presidential election will mean for gold and silver markets. Since Nixon closed the gold window in 1971 and the years of price inflation that followed, presidents have largely ignored gold, the Federal Reserve, and other issues related to sound money. Today, the devaluation of the Federal Reserve Note – the explosion of debt and the eternal deficits which enrich bankers and the political class at the expense of the rest of us – is getting harder to ignore.

Low-cost air travel will drive trillion-dollar airline spending spree, says Boeing 

Posted: 19 Oct 2016 02:00 AM PDT

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