Monday, 31 October 2016

Chinese SDR Update & Tom Now Believes In A 33% Allocation In Precious Metals


Tom also shares his thoughts on what would happen if the Fed does get the authority from Congress to start buying stocks. While I believe the Fed & U.S. Treasury have already been buying stocks via the Presidents Working Group On Financial Markets secretly, once they can do it publicly, then it is a sign the the END IS NEAR.

Lastly, Tom Cloud now believes in owning 33% of ones assets in the precious metals. This is much higher than the standard 5-10% allocation recommended by some of the more well-known gold analysts, such as Jim Rickards. Tom explains the reasons he believes it is important to have one-third of one’s wealth in the precious metals.

- Source, SRS Rocco


Thursday, 27 October 2016

Keiser Report: Double Government


In this episode of the Keiser Report, Max and Stacy discuss the 'double government' and the Wikileaks that exposed it to be true. In the second half, Max continues his interview with Dr. Michael Hudson about his new book, “J” is for Junk Economics and about the U.S. presidential candidates.

- Source, RT

Monday, 24 October 2016

Global Debt Grows and Central Banks Are Buyers

The IMF reported last week that global debt hit a record $152 trillion. I’m old enough to remember when a million was a lot, and in the past two decades we have blown right through talking of millions and billions and are now throwing around trillions like its nothing.



Much of this debt has been purchased by none other than the big central banks. Sunday, Bloombergreported that central bank assets have grown at the fastest pace in five years, topping $21 trillion:

The world’s biggest central banks are bulking up their balance sheets this year at the fastest pace since 2011’s European debt crisis to boost lackluster economic recoveries with asset purchases that are supporting stock and bond prices.

The 10 largest lenders now own assets totaling $21.4 trillion, a 10 percent increase from the end of last year, data collected by Bloomberg show. Their combined holdings grew by 3 percent or less in both 2015 and 2014.





You might think that with all this zero-rate and negative-rate money sloshing around that liquidity in the markets would not be an issue. But take a look at what happened in the forex markets last week. The British Pound (GBP), which is a major currency and heavily traded, took a 6% dive in less than two minutes. For reference, anyone watching the forex markets knows that a 1-2% move in the currency world is considered a big move, and 6% in two minutes is certainly not expected in something as liquid as the Pound.



The explanations for this move range from the standard “fat thumb” (i.e. someone inadvertently typed some extra zeros onto a sell ticket and swamped the market) to the easy-to-blame algo computers. Regardless of the reason, if there was one other than someone simply dumping a large number of Pounds onto the market, this type of thing shouldn’t really happen with so much liquidity sloshing around. People are certainly becoming complacent with ‘flash’ crashes, as if they are a normal occurrence and nothing to pay any attention to. I disagree. I think it could be a ‘tell’ and something to keep an eye on.

Think about where we are since 2008. The Fed keeps yapping about raising rates and normalization (though they do little other than talk), which has resulted in bond prices lower and interest rates higher. This is going to put enormous pressure on banks, pension funds and anyone else with a large amount of Sovereign bonds. A bond trader friend of mine told me that seeing all these bonds trading above par (i.e. over their face value) is going to lead to a massive problem. If you pay $1,100 for a $1,000 bond, you are only going to get $1,000 at maturity. At some point there will be losses as these bonds are marked back to par ahead of maturity.

Maybe the central bankers will be able to print and talk their way through to some successful outcome without actually raising rates. Or maybe they can have rates rise without causing some major dislocation in more asset classes, whether it be bonds, stocks, forex or commodities. But then again, maybe they can’t and that is why so many large, successful investors such as Soros, Druckenmiller and Buffett are sitting with large allocations of cash. With moves like we had in the Pound last week, it seems that the end game might be drawing near, and people might just want to be a little careful in the construction of their portfolios.

- Source, Sprotts Thoughts

Thursday, 20 October 2016

Obama's Biggest Legacy: USA's Debt Trap


Here's a huge part of Obama's legacy that nobody seems to want to talk about...If you enjoyed watching this video, be sure to check out the Hidden Secrets of Money website. 

It’s a world-leading educational series by Mike Maloney, the bestselling author of the Guide to Investing in Gold & Silver. As Mike explains in the series and his book, we live in an economic system that is made complicated by design. Basically, it’s set up so most people don’t even try to understand it. 

In Mike’s videos, he breaks down these concepts using easy-to-follow analogies, real pages from history, and animations that tie it all together.

- Source, Gold Silver

Tuesday, 11 October 2016

SRSRocco Explains Why The Precious Metals Price Smash Is Meaningless


Investors need to realize the precious metals paper price smash this week is meaningless when we consider the underlying fundamentals of the U.S. and Global Financial System continue to disintegrate. Financial Industry expert, Vic Patane and I discussed why the current precious metals selloff is a nothing more than a mere distraction from the ongoing systemic financial disaster taking place at Deutsche Bank.

In addition, we covered many other topics, including the strange 2016 U.S. fiscal debt increase of $1.4 trillion, while the budget deficit was less than half of that. We also discussed why the U.S. net worth of $89 trillion (Q2 2016) versus $58 in 2010 is not based on reality as our total energy consumption is actually lower.

- Source, SRS Rocco

Tuesday, 4 October 2016

Silver Crashes To $17 Handle - Biggest Drop In 20 Months

Silver Futures just extended their losses over 5%, back down to a $17 handle for the first time since Brexit...

This is the biggest 1- and 2-day drop since Jan 2015...


Silver's underperformance has driven the Gold/Silver ratio up to 71x...


- Source, Zero Hedge