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Tuesday, October 16, 2018

Gold World News Flash

Gold World News Flash


Will the Disappearance of Journalist Jamal Khashoggi Bring Down the US-Saudi Alliance?

Posted: 15 Oct 2018 11:00 PM PDT

 Journalist James M. Dorsey says Saudi Crown Prince Mohammed Bin Salman (MBS) has suffered significant reputational damage on the eve of a major global trade conference known as Vision 2030 or  "Davos in the Desert" The Financial Armageddon Economic Collapse Blog tracks trends and...

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Will The Saudis Bring The Petro Dollar Empire Down?

Posted: 15 Oct 2018 10:00 PM PDT

In this video, Luke of We Are Change breaks down how the latest controversy involving an outspoken journalist who was allegedly kidnapped, beaten and did not make it out alive. Could this be the beginning of the end for the regime?. Will the Saudis bring the petro dollar empire down?...

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Will CHINA takeover EUROPE?

Posted: 15 Oct 2018 09:00 PM PDT

For over a decade, Chinese political and corporate leaders have been hunting for investment opportunities around the globe with bottomless wallets. From Asia, to Africa, the U.S and Latin America, China has asserted itself as an emerging world power. The multi-billion dollar belt and road...

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Ten Years After the Last Meltdown: Is Another One Around the Corner?

Posted: 15 Oct 2018 08:00 PM PDT

The pop of this bubble will be the worst in a long time, and could mark the peak of population for a long time The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers ,...

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Saudi Arabia admits Khashoggi was killed

Posted: 15 Oct 2018 07:00 PM PDT

Saudi Arabia is preparing a report that would admit Saudi journalist Jamal Khashoggi was killed as a result of an interrogation that went wrong, CNN is reporting. #Khashoggi #SaudiArabia The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists ,...

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Dr. Mark Skidmore - $21 Trillion “Missing” Money Huge Implications for Dollar

Posted: 15 Oct 2018 04:30 PM PDT

 Michigan State Economics Professor Mark Dr. Skidmore says there is a limit to money printing even when all the global central banks are doing it. Skidmore says, "What does it mean when a central bank is buying equities, or buying debt with printed money in order to suppress interest rates and...

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Dow 40,000 After “Large Panic Event?”

Posted: 15 Oct 2018 02:45 PM PDT

This post Dow 40,000 After "Large Panic Event?" appeared first on Daily Reckoning.

Dow 40,000?

Yes, says the man who in 2016 predicted Dow 25,000.

But there is a "catch," this fellow warns.

What catch… when can you expect 40,000… and what earthly force could propel the Dow to such preposterous heights?

Answers anon.

But first a progress report…

Our agents inform us that last week's thunder and lightning broke the bullish trend line that has held since 2016.

The big question today was if stocks could carry over Friday's momentum, when the Dow Jones rebounded 287 points.

As Investor's Business Daily reminds us:

"For a confirmed stock market uptrend, the major averages must rise over several days."

Could they keep the steam up today?

The Dow Jones was the little engine that couldn't… then could… and finally couldn't.

It closed the day down 89 points. The S&P was down 16. The Nasdaq sank no less than 66 points.

Will things get worse?

The Fed Has Blocked off Every Southbound Lane on the Road to Price Discovery

"It's hard to say for certain," hedges Chris Martenson, co-author at PeakProsperity.com.

"But the systemic cracks we’ve been closely monitoring," he warns, "definitely got an awful lot wider [last] week… The central banks have distorted the processes of price discovery and market structure for so many years now that it's difficult to know yet whether their grip on the markets has indeed failed."

We agree, it is difficult to know.

For years the Fed has blocked off every southbound lane on the road to price discovery… and detoured all traffic into one single lane heading north.

But chief traffic engineer Jerome Powell has lifted some of the restrictions…

He has continued to raise interest rates. He is also working down the balance sheet.

Between Sept. 6 and Oct. 3, the Fed lopped off $34 billion of market-supporting assets.

In all, quantitative tightening has taken roughly $285 billion off duty since October last.

"We're transitioning from a market led by central banks to one where fundamentals dominate," says Mohamed El-Erian, chief economic adviser at Allianz.

But what if the fundamentals aren't equal to the job?

Some 165 companies of the S&P 500 — roughly one-third the index — now tread in bear market territory.

Meantime, Investor's Business Daily tracks 197 industry groups… 194 of them are in retreat this month.

"It tells you how much real weakness there has been," says Gary Kaltbaum, president of Kaltbaum Capital Management.

But we opened by raising the possibility of Dow 40,000.

If it can't hold the line at 26,000, you ask… how 40,000?

Yves Lamoureux is president of macroeconomic research firm Lamoureux & Co.

In January 2016 — when the Dow Jones traded in the vicinity of 16,500 — he ventured the index would scale 25,000 within a few short years.

It did.

Now this fellow is coming out flatfooted for Dow 40,000.

But recall… there was a catch along the way…

That catch takes the form of a "large panic event" beginning now and running through to next year.

Investors Should Be out of Stocks for Most of 2019

Mr. Lamoureux:

We see a large panic event taking shape now that continues into next year — the melt-up we forecasted is done. Investors should be out of stocks for most of 2019.

He hazards the stock market could shed perhaps one-third its value in the unfolding panic.

From today's perch, a 33% decline represents an 8,471-point bludgeoning.

But by 2020, Lamoureux projects the Dow Jones will rise again… as if by conjury.

But how? What unseen force will provide the magical effect?

The Federal Reserve.

Will the monetary authority slash rates to zero… and hatch another round of quantitative easing?

Most likely it will — but the Fed has depleted too much of its phony fireworks in the last crisis to work next time.

As Jim Rickards explains:

Interest rates are still at 2.25%, whereas they need to be about 5.0% to give the Fed enough room to cut rates to get the economy out of a recession. The money supply is still about $4 trillion, down from $4.4 trillion but still too high to launch more quantitative easing without the risk of destroying confidence in the dollar. In short, the Fed and other central banks are not in a position to deal with a recession or panic should one arise in the near future. 

What then can it do?

This Lamoureux fellow argues the Fed will no longer support markets indirectly with its usual witchcraft…

It will instead buy stocks directly:

"The Fed most likely steps up early in 2020 and starts buying shares."

Lamoureux believes the resulting "hyperinflation of financial assets" will lift the Dow Jones to its 40,000 crest in the years following.

Perhaps you scoff at the suggestion of the Fed buying stocks.

But we would remind you that the Bank of Japan and the Swiss National Bank are already hard at the business.

The Bank of Japan owns some 75% of the nation's exchange-traded fund (ETF) market.

And equities comprise roughly 20% of Swiss National Bank reserves.

Were you aware that the Swiss National Bank owns substantial shares of Amazon, Apple, Facebook and Microsoft?

But comes the objection:

United States law prohibits the Federal Reserve from purchasing equities. It can only bring aboard Treasuries and mortgage-related assets.

Ah, but do not forget Cicero's injunction:

Inter arma enim silent leges — in times of war, the laws fall silent.

And in event of financial crisis, the laws too fall silent… or are hastily rewritten.

Eric Posner professes law at the University of Chicago.

He claims, for example, that the Fed's rescue of Bear Stearns was "legally questionable."

He furthermore claims the Fed reached into the same "legally dubious" trick bag to bail out insurance titan AIG.

But the Fed buying stocks?

This Could do the Trick

Only last month, former IMF chief economist Olivier Blanchard proposed it before the Boston Fed's monetary policy conference.

Blanchard argued thusly:

"[Buying stocks] could do the trick and could work even better than buying long bonds."

Onto the balance sheet they would go.

Do you think the Fed's balance sheet is behemoth already, even with quantitative tightening?

This Blanchard fellow does not:

“If we need it, we could clearly double it and nothing terrible would happen.”

That is, madder wine, madder music… and madder men would be the solutions on tap.

The Fed's capture of the "free market" would thus be complete… and it would have the stock market safely under lock and key.

And so we close by repeating the old chestnut from G.K. Chesterton:

"The modern world is insane, not so much because it admits the abnormal as because it cannot recover the normal."

One more good crisis… and it may never…

Regards,

Brian Maher
Managing editor, The Daily Reckoning

The post Dow 40,000 After "Large Panic Event?" appeared first on Daily Reckoning.

Collapse of the Federal Reserve has started

Posted: 15 Oct 2018 01:38 PM PDT

The Fed is a tool of the totalitarian globalist elites. 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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Goldman Sachs' seedy underbelly exposed in shocking tapes

Posted: 15 Oct 2018 06:31 AM PDT

By Kevin Dugan
New York Post
Thursday, October 11, 2018

Fresh dirt has spilled at Goldman Sachs -- and this time it has been caught on tape.

David Solomon, who took the helm of the Wall Street giant from Lloyd Blankfein last week, once blew off criticism of Goldman's double-dealing in a big energy merger as a matter of "perception" -- a cheeky dismissal that came despite a class-action lawsuit against the deal that eventually cost Goldman $20 million in fees.

... Dispatch continues below ...


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That's among the cringeworthy quotes that Carmen Segarra claims she secretly recorded behind closed doors for her new book "Noncompliant: A Lone Whistleblower Exposes the Giants of Wall Street."

The 340-page expose expands on her previous claims that Goldman Sachs has long exploited an improperly cozy relationship with Wall Street regulators. ...

... For the remainder of the report:

https://nypost.com/2018/10/11/whistleblowers-new-book-shares-secret-tape...


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Crypto markets roiled as traders question Tether's dollar peg

Posted: 15 Oct 2018 06:12 AM PDT

By Andrea Tan, Eric Lam, and Benjamin Robertson
Bloomberg News
Monday, October 15, 2018

A sudden exodus from the most popular dollar-linked cryptocurrency rippled through digital asset markets on Monday, saddling some investors with losses while propelling Bitcoin to its biggest gain in more than three weeks.

Tether, the so-called stablecoin used as a substitute for the U.S. currency on crypto exchanges around the world, broke its historically tight link with the greenback, touching 85 cents on U.S.-based venue Kraken.

... Dispatch continues below ...



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Transactions on Binance, one of the world's most active platforms for Tether, recently implied a price of about 96 cents, according to CoinMarketCap.com. Bitcoin jumped as much as 8.9 percent to $6,769 as Tether holders shifted into alternative virtual currencies.

"If traders start to flee Tether, it's a potentially precarious situation," said Vijay Ayyar, head of business development at Luno, a cryptocurrency exchange. "It basically implies a lot of volatility ahead." ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-10-15/dollar-peg-that-under...

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Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Thursday-Sunday, November 1-4, 2018
http://neworleansconference.com/wp-content/uploads/2018/07/NOIC_2018_Pow...

* * *

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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