All Hell is Going to Break Loose: Silver is Going to Skyrocket

With silver rallying while gold continues to consolidate, is the price of silver about to skyrocket? Plus “All hell is going to break loose.”

“All Hell Is Going To Break Loose”

Peter Schiff: “Our entire way of life has been built on the privilege of issuing the world’s reserve currency. And when the dollar loses that status, all hell is going to break loose here in the US.”

ECB Balance Sheet Expanding Again

Holger Zschaepitz: “ECB balance sheet resumes uptrend. Rose by €6.9bn as QE reinvestments > QE redemptions. Now at €4,684.4bn, just shy of a fresh high, and equal to 40.4% of Eurozone GDP vs Fed’s 18.1% and Bank of Japan’s 102.2%. (See chart below).

ECB Balance Sheet Expanding Again

Silver Breakout:

Lawrence McDonald, Former Head of Macro Strategy Society Generale: “Silver making its move on gold, copper, and nickel as well. Capital is flying into reflation bets, Mr. Powell has his hands full. (See chart below).

Capital Flying Into Reflation Bets As Silver Breaks Out:

Silver May Be Set To Skyrocket

Peitro Di Tora, Analyst & Global Macro Investment Strategist: “Silver keeps following fractal from sharp move up 1970-73. History always repeats itself. True silver bull market classic signals supporting the breakout: 

1) Silver miners start to outperform and push Silver up. 

2) Silver strongly outperforming Gold and USD on the move up.

- Source, King World News, Read More Here

Bank Run Accelerates: Deutsche Bank Clients Are Pulling $1 Billion A Day, Lehman 2.0

There is a reason James Simons' RenTec is the world's best performing hedge fund - it spots trends (even if they are glaringly obvious) well ahead of almost everyone else, and certainly long before the consensus.

That's what happened with Deutsche Bank, when as we reported two weeks ago, the quant fund pulled its cash from Deutsche Bank as a result of soaring counterparty risk, just days before the full - and to many, devastating - extent of the German lender's historic restructuring was disclosed, and would result in a bank that is radically different from what Deutsche Bank was previously (see "The Deutsche Bank As You Know It Is No More").

In any case, now that RenTec is long gone, and questions about the viability of Deutsche Bank are swirling - yes, it won't be insolvent overnight, but like the world's biggest melting ice cube, there is simply no equity value there any more - everyone else has decided to cut their counterparty risk with the bank with the €45 trillion in derivatives, and according to Bloomberg Deutsche Bank clients, mostly hedge funds, have started a "bank run" which has culminated with about $1 billion per day being pulled from the bank.

As a result of the modern version of this "bank run", where it's not depositors but counterparties that are pulling their liquid exposure from DB on fears another Lehman-style lock up could freeze their funds indefinitely, Deutsche Bank is considering how to transfer some €150 billion ($168 billion) of balances held in it prime-brokerage unit - along with technology and potentially hundreds of staff - to French banking giant BNP Paribas.

One problem, as Bloomberg notes, is that such a forced attempt to change prime-broker counterparties, would be like herding cats, as the clients had already decided they have no intention of sticking with Deutsche Bank, and would certainly prefer to pick their own PB counterparty than be assigned one by the Frankfurt-based bank. Alas, the problem for DB is that with the bank run accelerating, pressure on the bank to complete a deal soon is soaring.

Here are the dynamics in a nutshell, (via Bloomberg): Deutsche Bank CEO Christian Sewing is pulling back from catering to risky hedge-fund clients, i.e. running a prime brokerage, as he attempts to radically overhaul the troubled German lender while BNP CEO Jean-Laurent Bonnafe wants to expand in the industry. A deal of this magnitude would be a stark example of the German firm’s retreat from global investment banking while potentially transforming its French rival from a small player in the so-called prime-brokerage industry to one of Europe’s biggest.

Of course, publicly telegraphing that DB is in dire liquidity straits and needs an in-kind transfer of its prime brokerage book would spark an outright panic, and so instead the story has been spun far more palatably, i.e., "BNP is providing “continuity of service” to Deutsche Bank’s prime-brokerage and electronic-equity clients as the two companies discuss transferring over technology and staff", according to a July 7 statement. The ultimate goal of the talks is for BNP to take over the vast majority of client balances, which are slightly less than $200 billion currently.

There is just one problem: nothing is preventing those clients who would be forcibly moved from a German banking giant to a French banking giant from redeeming their funds. And that's just what they are doing. Or rather, nothing is preventing them from moving their exposure for now, which is why they are suddenly scrambling to do it before they are suddenly gated.

Which is why the final shape of the deal remains, pardon the pun, fluid, and it is unclear how it will proceed, facing a multitude of complexities, including departing clients.

In an attempt to stop the bank run, BNP executives are meeting with U.S. hedge-fund clients this week to convince them to stay following similar sit-downs with European funds last week, Bloomberg sources said.

However, if this gambit fails, and hedge funds keep moving their business elsewhere, officials at the German bank may just relegate its assets tied to the prime finance division into the newly formed Capital Release Unit, i.e. the infamous "bad bank" which is winding down unwanted assets totaling 288 billion euros ($324 billion) of leverage exposure, and the prime brokerage is responsible for much of the 170 billion euros of leverage exposure that’s coming from the equities division into the division, also known as CRU a presentation shows.

It also means that countless hegde funds are suddenly at risk of being gated on whatever liquid exposure they have toward Deutsche Bank.

To be sure, Deutsche Bank’s hedge fund balances have been declining throughout the year as speculation swirled around Sewing’s intentions for the prime brokerage, but the rate of redemptions was far lower than $1 billion per day. Now that the bank jog has become a bank run, the next question is how much liquidity reserves does DB really have and what happen if hedge funds clients - suddenly spooked they will be the last bagholders standing - pull the remaining €150 billion all at once.

We are confident we will get the answer in a few days if not hours, until then please enjoy this chart which compares DB's stock decline to that of another bank which was gripped by a historic liquidity run in its last days too...

- Source, Zero Hedge

Why Do The Fed And Powell Hate Gold and The Gold Standard?

Powell was asked a question about gold and the goldstandard, which conveniently left out silver. 

Why does the Fed hate gold? Tune-in to find out why!

- Source, Silver Doctors

Martin Armstrong: USA Prettiest Ugly Sister in Global Economy

Legendary geopolitical and financial analyst Martin Armstrong says America’s economy is like being “the prettiest ugly sister in the family” of nations. 

So, if the U.S. economy is so good, why the rush to cut interest rates? Armstrong explains, “It’s really the world economy which is in serious trouble. You really have to look closely and pay attention to the words (Fed Head) Powell said. 

The economy is strong, unemployment is fine. Why would you cut interest rates when the stock market is making record highs? 

Powell said basically because it was things happening outside the country. The Fed, as I have said before, has become the central bank for the world.

This is the problem, and Europe is a complete basket case. They don’t get it, and they keep trying to hold onto their power and punish anyone who disagrees with them. 

Why is the U.S. economy so good? Why is the Dow at a record high? 

China is in trouble. Europe is in trouble. Japan is a basket case. The capital is coming here.”

- Source, USA Watchdog

The Fall of the UK Economy: British Pound Enters BEAR MARKET As Currency CRASHES

Josh Sigurdson talks with author and economic analyst John Sneisen about the fall of the UK economy as the British Pound sees 2 year lows that if not for what we saw in early 2017, would be closer to 34 year lows. 

As the Bank of England desperately attempts to prop itself up as Brexit among countless other reasons play into the new bear market, the bank intends to lower interest rates. The problem is, they are already at a mere 0.6% rate! 

They will likely be going negative as Australia heads in the same direction and the Federal Reserve talks about lowering interest rates as well. Meanwhile, the European Union ECB interest rates are even lower... AT 0%! 

They've attempted to prop up this old guard system far too long. It's been propped up on debt, derivatives and faith. It had to go down eventually. 

Everything appears to be in a slow spiral downwards on a global basis and individuals need to understand that all fiat currency eventually fails. It always has, it always will. They need to be financially responsible and understand money to be able to control their own money.

- Source, World Alternative Media

More Proof The Elites Have Lost Control Of Gold and Silver

Are gold & silver really breaking free from the price suppression? Join Mike & Half Dollar as they dive into fresh new evidence which suggests the cartel is losing control of the "markets". 

In addition to this new evidence, additional topics discussed include: 

- Fed Chair Jerome Powell's Q&A session with Congress going on today and tomorrow. 

- Big changes are coming down the pike as evidenced by the recent shakeups at major central banks and institutions around the world, including the latest developments from just yesterday. 

- How safe are pension plans are retirement systems? - What is the end game for the US dollar? 

- Debunking the "1 oz of gold buys a fine suit" myth. For discussion on those topics and a whole lot more, including addressing some comments and questions in the chat, tune-in to today's show in its entirety.

- Source, Silver Doctors

Trapped: Are You In An Illiquid Fund Full Of Ghetto Bonds?

Trapped! Are You In An Illiquid Fund Full Of “Ghetto Bonds”? Trump’s best cheerleaders & supporters - The angry, crowded democrat candidates. DOW has best June in 81 years (on low volume) Safe haven investors flee into cover. Will SWIFT be swiftly replaced?

- Source, Golden Rule Radio

Everyone Needs Exposure To Gold and Silver, Heres Why

Thanks for watching this Silver Doctors Interview. Share your thoughts below and make sure to click the subscribe button to join the Silver Doctors Community. 

Today's guest, Simon Popple, joins us to share his thoughts on the economy and the importance of everyone having exposure to gold and silver. He believes the time is approaching where to much debt will lead to the financial ruin of everyone not holding metals.

- Source Silver Doctors

Michael Pento: The FED Will Crush the Dollar

Today's guest, Michael Pento, joins us to share his thoughts on the economy and how the Federal Reserve's monetary policy will crush the dollar like a sledgehammer.

- Source, Silver Doctors

We Are in a Gold Bull Market that May Well Last 20 Years

Collin Kettell fills in for Kerem and interviews Jordan Roy-Byrne about the potential of a new bull market in gold. Jordan is not sure how long this particular move will last, but it could be a big one that lasts at least the next six months to a year. 

Jordan has said previously, “The market will move when the Fed cuts rates, because gold rises with declining interest rates or rising inflation rates.” He says, “This is now playing out exactly as it should, but it’s too early to determine how long it will last. The days of a thousand dollar gold are long gone. We are just at the start of something that is going to be historical and last the next fifteen plus years.”

- Source, Palisade Radio

Gold, Cryptos, Censorship, & Strategic Relocation

Jim Rawles, founder of SurvivalBlog.com, returns to Reluctant Preppers to bring us up to date on these hot topics: 

- Gold, Silver, and Platinum: Still Undervalued? 

- Cryptos: portable and undetectable? 

- Internet Censorship to be weaponized for 2020 elections, but there’s a NEW UNSTOPPABLE ALTERNATIVE...

- Strategic Relocation on the surface of the Real-Estate bubble: what’s a family to do? 

- Going mobile: several surprising options for survival get-out vehicles.

- Source, Reluctant Preppers

What to Expect From the Gold Price Ahead of G-20

With global growth worsening and the trade war tensions intensifying, a rise in gold prices could be coming by September, according to Bill Baruch, founder and president of Blue Line Futures. 

“Global growth has been deteriorating for a while, and now it’s the trade war just speeding the process up,” Baruch said. “If we see progress on the trade war, then the dollar could sell off, and gold lifts higher.” 

Baruch also said gold could see levels of $1,484 over the next two months, as the path of least resistance is both technically and fundamentally higher. After that, gold could see some seasonal resistance. 

“Looking at the Fed being more dovish than expected in the meeting last week, ultimately that helped lift gold higher, by putting a little bit of pressure on the dollar,” he said. 

“The dollar hasn’t really sold off, and one of the reasons why is because there’s a lot of safe-haven tailwinds in the dollar because of the trade war.” “This is a bullish breakout above the five-year trend,” Baruch noted. 

“It’s a matter of where we go from here in the sense of holding support, and a more immediate term move higher, or consolidation before moving higher.”

- Source, Kitco News