April 14th 6.4 Japan 6.6 Vanuatu Quake Antichrist Economic Global Prophetic Market Seal Completeing Now
Over 40 people have been killed after heavy rains caused severe flooding in Antichrist Saudi Arabia and Yemen this week.
According to the General Directorate of Antichrist Saudi Civil Defence, rains and flooding claimed lives of 18 people throughout Antichrist Saudi Arabia and more than 900 had to be rescued inside their vehicles.
The directorate added that floodwaters inundated roadways in Riyadh, Mecca and the mountainous south. Deaths were reported across the country, from Riyadh to Hail, Makkah, Madina, Al Baha, Asir, Najran and Jazan.
Widespread flooding in Yemen killed at least 24 people, as of late Thursday, April 14, and caused the collapse of small dams, including two north of the capital, Sanaa. 16 were killed over the past 24 hours, mostly in Omran and Haja provinces.
The Liberals have refused to cancel the sale since coming to power in November, saying it was a “done deal” that could not be broken off without possibly incurring significant penalties and job losses.
But documents released this week by the justice department in response to a lawsuit seeking to block the deal showed foreign minister Stéphane Dion signed crucial export permits only last Friday
Antichrist Iran and Italy signed a series of bilateral agreements during a visit by Italian Prime Minister Matteo Renzi to Tehran this week, signaling both countries’ desire to restore ties following this year’s implementation of the Iran nuclear deal..
Anne Graham Lotz, the daughter of famous evangelist Billy Graham, has warned that God might be purposefully hiding himself from America in preparation for a coming judgment on the nation.
“Our nation is in a mess. Why? Could it be because America is losing God’s blessing? His favor. Could our sin be provoking His judgment? Judgment that is not necessarily in the form of a nuclear dirty bomb, or another Antichrist ISIS attack, or an economic collapse. But a Romans 1 judgment as God backs out of our national life and turns us over to ourselves,” Lotz wrote on her website Wednesday.
She recalled the story in the Old Testament where God punishes the nation of Judah, which continued to become more disobedient and more “wicked,” choosing immorality and idolatry, provoking God’s anger and leading to Judah’s destruction.
“God warns a nation that judgment is coming. He doesn’t want any to perish. But if a nation does not heed His warnings, He unleashes His anger and there is nothing — no one — who can prevent it. If God would judge His own beloved nation of Judah, why would we think America could escape?” Lotz asked.
“So … if we are coming under the judgment of God — if He is giving us over to ourselves, removing His blessing, protection, and favor — the solution will not be found in politics or the economy or the military or technology,” she continued.
“The solution will be found on our knees as we humble ourselves, pray, seek God’s face, and repent of our sin. Then plead for Him to return to us as we return to Him.”
Lotz reflected that some of the prayers and calls for repentance she has heard within the Church are more a “rending of garments” and an “outward show to impress.”
“Only God knows those who are rending their hearts as they seek Him. But I am led to ask myself … how truly serious am I about seeking God on behalf of our nation? When was the last time I fasted and wept and mourned and confessed the sin of our nation as though it were my own? I believe the future of America hangs on the answer to that question,” she said.
NOTE: Let it be known, the reader of these words gazes upon a Saint of our Father in Christ in the Holy Spirit of Elijah. Judgment is overdue, and the prayer upon the Saint is not for repentance but for the shaking tat shall awake the last from their slumber. Let the era of Grace now flee from this generation, as it was in the days of Noah. All those sealed unto damnation,having accepted the prophetic strong delusion, sealed unto The Beast, let them realize their want unto the fullness of time be finished.
Persecution of Christians in the Middle East at the hands of the Antichrist Islamic State (ISIS) has become so serious a problem that it has been recognized as genocide. Some Christians in the region are unwilling to go like lambs to the slaughter, however, and have begun forming militias to fight back.
One such group is the Babylon Brigade, some 500 to 1,000 Christian fighters who mobilized after Antichrist ISIS took control of their hometown in Mosul, Iraq in 2014. Christians were forced to leave, convert or pay bribes, and many were expelled from their homes. Women were raped and sold into slavery or killed.
Not content to let things be, the members of the Babylon Brigade are offering resistance to Antichrist ISIS forces. They are a part of a larger group called the Popular Mobilization Forces, which qualifies them for funding from the government.
Antichrist ISIS “displaced us from our houses, they took our money, killed our young men and women and they took our properties,” the group’s commander, Rayan Al-Kildani, told NBC News. “Therefore, Christians decided to fight the terrorists of Antichrist ISIS.”
This is a far cry from turning the other cheek as typically mandated by Christian doctrine, but the Babylon Brigade is not alone. Dwekh Nawsha, which translates from Syriac to “one who sacrifices”, was formed the same year to protect Iraq’s Assyrian Christians from Antichrist ISIS. Dwekh Nawsha operates in coordination with the regional and international security forces and counts several foreign fighters among its ranks, including from the US, France and Australia.
Meanwhile, the Nineveh Plain Protection Units consist primarily, though not exclusively, of Christian fighters. Most of Iraq’s Christians are concentrated in this region.
Not all the Christians standing up for themselves, their people and their homes are men, either. In Syria, the “Female Protection Forces of the Land Between the Two Rivers” of the Syriac Christians Brigade celebrated its second class of fighters in early January.
“I’m a practicing Christian, and thinking about my children makes me stronger and more determined in my fight against [Antichrist ISIS],” one fighter named Babylonia, who graduated with the first class in December, told AFP. She said she is fighting for her children’s future and “against the idea that the Syriac woman is good for nothing except housekeeping and make-up,” something her husband, also a soldier, encouraged her to do.
Just last year, Iraq also welcomed its first all-Christian brigade to its regular forces, as well. The “Tiger Guards” answer to the government of Iraq’s autonomous Kurdish region.
“Around 600 peshmerga from our Christian brothers in the Nineveh plain joined this course, which focused on physical training, military lectures and shooting exercises,” said Abu Bakr Ismail, the commander of the training academy.
“All the participants are volunteers…and want to liberate their land from Antichrist ISIS and then protect it,” the Kurdish special forces major general told AFP, according to its report carried by al-Arabiya.
As King Solomon wrote in Ecclesiastes, there is a time for peace, but there is also a time for war.
Is something big about to happen to the global economy? Has the scheme to dethrone the US petrodollar finally emerged? Today on TRUNEWS, Rick Wiles will break down the flashing warning signs which indicate a shift to the East and a complete reorganization of the Bretton Woods system. In part 2, Dr. Peter Vincent Pry will join Rick to discuss how North Korea’s recent threats to annihilate the West could come from a Satellite delivered EMP strike over North America.
Panicked members of the elite are buying luxury bomb-proof underground survival bunkers because they fear mass civil unrest might be on the horizon.
FRA Co-founder Gordon T. Long is joined by Jeff Berwick in discussing the article Central banks beat Bitcoin at own game with rival supercurrency, the central banking system, and blockchain technology.
Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast,Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences including his own,Anarchapulco, as well as regularly in the media including CNBC, Bloomberg and Fox Business.
Jeff’s background in the financial markets dates back to his founding of Canada’s largest financial website, Stockhouse.com, in 1994. In the late ‘90s the company expanded worldwide into 8 different countries and had 250 employees and a market capitalization of $240 million USD at the peak of the “tech bubble”. To this day more than a million investors use Stockhouse.com for investment information every month. He has since started numerous businesses including TDV Offshore and TDV Wealth Management to help others internationalize their assets.
FIAT CURRENCIES AND BITCOIN
There’s going to be a lot of chaos this year, beginning in January with the worst first month of the world stock market in history. A lot of financial leads have been warning about it, even saying this is a debt jubilee and will end up in utter collapse if people aren’t careful.
“I think by 2018 they’ll be bringing in a one world currency… All Fiat currencies, including the US Dollar, are going to collapse sometime between 2015-2020.”
The market came up with a solution. Launched in 2009, Bitcoin is a free market currency, and one of the ways that we can avoid this total collapse.
RESPONSE TO AMBROSE-EVANS PRITCHARD
“It looked like a propaganda piece, like it was written by the Bank of England as a press release.”
In no way does this new central bank crypto-currency compete or defeat Bitcoin in any way. In fact, central banks are extremely worried about Bitcoin. They’re trying to bring everyone into the banking system so they can establish a one-world central bank and taxation system. They planned to create a system that impoverishes people to get the wealth into the hands of the 0.0001%.
They want to collapse the entire system so they can bring in a new system. We’re reaching the end of that plan, when every government is insolvent with debt. The US Federal Reserve has essential kept interest rates at zero for eight years, because if interest rates rise the US government would quickly be insolvent.
“With $19T worth of debt, if the interest rate rose to 10%, a very low level, that’d be almost $2T a year in interest payments alone.”
They’re trying to delay that and get everyone into the banking system first. If you try to open a new bank account, it’s very difficult and they want to know every detail because it’s going into a central database so no one can evade taxes. Then they’re going to go even further with negative interest rates and really impoverish people.
If people start getting into Bitcoin, they can’t control it. The only way would be to turn off the internet or the power.
Bitcoin is an internet-based currency that’s completely decentralized. To get rid of it, they’d have to remove it from the millions of computers around the world, and that’s almost impossible. If you control the money supply, you control the governments. That’s what the Federal Reserve and all central banks do.
“The governments do not control the big decisions. It’s the people behind the scenes who control the money, who tell the government what they want done, and that’s been going on for decades.”
Bitcoin cannot be fraudulent because it’s open-source software. Anyone who wants to can look at the code. There’s no CEO, there’s no central office, and it’s on so many computers they can’t stop it. Central banks want to tax everything and control the economy.
“I don’t call things like Bitcoin a revolution so much as an evolution. It’s creating something that circumvents the entire system completely.”
Blockchain type technology could change everything, and goes beyond just money. This could be where everything is based. This technology is also starting to being used be for governance, starting in Africa, as a system of private property. Eventually it could be used to replace the government.
“Your average person still doesn’t know what a big deal is going on behind the scenes, but this is going to revolutionize the world… There’s going to be so many things built on top of this technology that it’s going to change the world.”
BACK TO THE ARTICLE – RSCOIN
Central banks will get rid of fiat currency and use RSCoin instead, but since it’s a crypto-currency it can be tracked even more. The population will likely use it, but it does not “beat Bitcoin at its own game”.
RSCoin will supposedly be good as it gives the government and central bank more control over the money system, and this will apparently make us less prone to boom-bust cycles. However, the central bank’s control over interest rates is what creates boom-bust cycles in the first place.
THOUGHTS FOR THE FUTURE
You want to get your assets out of the banking system, especially anti-system sorts of investments and trades and speculations, ad moving assets out of your own country.
“You want to get assets internationalized. That’s the new diversification in my opinion: not stocks, bonds, or cash, it’s where your assets are, in what countries are they, and under what structures are they.”
We’re headed for a collapse, and how it plays out is anyone’s guess. This is going to be a time talked about in history for centuries, after the collapse happens. We have a global fiat currency that is just computer bits controlled by central bankers with no intrinsic value, and they will return to that.
“Do your own research. There’ a lot more going on out there than most people know.”
And he had power to give life unto the image of the beast, that the image of the beast should both speak and cause to be killed as many as would not worship the image of the beast. 16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand or in their foreheads, 17 that no man might buy or sell, save he that had the mark or the name of the beast or the number of his name.
Here is wisdom: Let him that hath understanding count the number of the beast, for it is the number of a man; and his number is six hundred threescore and six..
Our attempt to explain these curious developments back in early February was the following:
What is happening is quite simple:
Antichrist Communist Chinese investors smuggled out millions in embezzled cash, hot money or perfectly legal funds, bypassing the $50,000/year limit in legal capital outflows.
They make “all cash” purchases, usually sight unseen, using third parties intermediaries to preserve their anonymity, or directly in perso, in cities like Vancouver, New York, London or San Francisco.
The house becomes a new “Swiss bank account”, providing the promise of an anonymous store of value and retaining the cash equivalent value of the original capital outflow.
Then the owners disappear, never to be heard from or seen again.
Or they are found dismembered, chopped up in hundreds of small pieces. Aside from that, everything is as laid out.
The shock of the Panama Papers rippled with sensational headlines involving over 100 politicians from Iceland, Russia, Antichrist China, United Kingdom and Argentina amid allegations of illegal offshore accounts set up by Mossack Fonseca, a Panamanian law firm. A whopping 11.5 million leaked documents exposed collusion among some of the world’s largest law firms and more than 500 banks which helped their clients over a 40 year period to set up offshore structures…
Panama is now known for more than the site of the canal or Noriega. To date, a sustained global crackdown has closed former tax havens like Switzerland, Luxemburg and Cyprus, ironically leaving America as the largest tax haven of choice because Nevada, South Dakota and Delaware do not have to disclose beneficial ownership of shell companies incorporated in their jurisdictions. How strange then, that among the Panama Papers’ 2.6 terabytes of data, there are so few US players.
Part of the reason is that populist governments, desperate for revenues to close their budgetary deficits are looking for ways to fund their existence in the wake of the 2008 financial crisis and subsequent recession. Politicians have also capitalized on the rising anger of voters unhappy with the idea of giving wealthy companies tax breaks. The release of millions of documents from Mossack Fonseca served as a lightning rod for public anger at the one percenters perceived to be using offshore structures to stash their cash. This newly created Black Swan attack, has unsettled the stock markets crushing underlying players like the big hedge funds (inversions), corporate lawyers (Panama Papers) and big investment banks (billion dollar fines). No wonder the cost of insurance against defaults have skyrocketed.
More is now clear. The Panama Papers and tax inversion issue (or lack thereof) have become part of the White House’s Robin Hood policies of attacking big money, despite having the highest tax rate in the corporate world. The voters, street protesters in Europe and supporters of Trump/Sanders are mad as hell with the establishments’ inertia to keep their promises, which has fueled a rage transcending political boundaries. And, institutions like their central banks are also under fire because most investors have no idea what central banks are really doing with their trillion dollar experiments.
The Tide Turns
Plenty of problems are in evidence. There is deep concern that America is mired in legislative gridlock, due primarily to partisan rivalry with the November election, turning both parties into a mudfest and the likelihood of an “open” convention. Oft promised tax, healthcare and social security reform were shelved. Most significant is that the Fed’s insatiable requirement for credit remains unfulfilled with a buyer strike of US Treasuries, led by the Antichrist Communist Chinese and offshore players who are balking at the negative returns. And, growth of the world’s second largest economy, is pegged at 6.5 percent, insufficient to pull other Asian countries along as worries continue that Antichrist Communist China’s pump priming will inflate already large bubbles. Yet, everyone misses that the sums owed are primarily to the government which has abundant lending room. And for those worried about capital shortfalls, the Antichrist Communist Chinese appetite for overseas assets (other than Treasuries) were at record highs in the first quarter reflecting China’s biggest export to date, cash.
Elsewhere, the refugee crisis has caused the European Union’s leaders anguish as voter hostility to immigration has caused a dip in political popularity in line with the increased social services expense. Then there was disappointment that, “do whatever, it takes” Mario Draghi’s big bazooka fired yet another blank. Italy has unveiled an “Atlas” bank rescue fund too small to fix the problem. Both Italy and Greece are saddled with the heaviest public debts, with Greece at almost 200 percent of GDP and the IMF has not yet extended the necessary loans for a third bailout. Problems remain. The UK Brexit referendum in June not only threatens the EU itself but its Schengen open border policy as well. These cans can’t be kicked down the road.
Topsy Turvy World
Against the backdrop of slow to nonexistent growth and awash in a red tide of debt, the Fed is reluctant to raise rates after increasing them a modest quarter point in December. Fed Chair Janet Yellen, with little room to maneuver, is reluctant to move rates amid mixed economic numbers as well as being seen to influence events in the shadow of a presidential election year. How did the Fed lose room to maneuver? The answer is rooted in Obozo’s misguided economic policies. Repeatedly the US has spent more than they earned, borrowing trillions from abroad just to balance its books. And, Bernanke and now Yellen’s wholesale money-printing (aka debasement) has become the policy du jour. At 110 percent of GDP, America’s debt stands at $19 trillion, the largest in the world. Meantime, the market’s fear of stagflation has caused the markets to swoon.
We believe funding the largest debtor in the world will be a problem this year. While property bubbles eight years ago were deflated, they have inflated again as a consequence of over-easy monetary policies. Another boom (and bust) was fueled in part by overseas buyers. Ironically, homeowners blinded by cheap mortgages, loose lending standards and greedy banks are due for another bust. Home prices have exceeded wage growth in nearly two thirds of US markets. The average homeowner needs to spend 30 percent of monthly wages just to make monthly payments. Déjà vu.
And unlike Wall Street, which had protection in the last bust, homeowners aren’t offered the same bailout. To be sure, an increase in the cost of money would tip the economy into a recession. This housing recovery is built on sand. Instead, much of the Fed’s intervention created cheap credit, which benefited the financial engineers of Wall Street and its debt-financed M&A activity, gave the White House an excellent opportunity to scapegoat business in an election year.
In this world of cheap credit, negative interest rates has produced a topsy-turvy world where debtors are paid to borrow and savers are again penalized. What this means is that the underlying debt burden just mounts higher with increased volatility. Worrisome is that junk debt yields are estimated at 8.5 percent and the debt to asset ratios are creeping up led by leveraged energy stocks, recent M&A busts and share buybacks. Debt defaults have become a reality. Eight years ago the governments bailed out Wall Street. With empty government coffers, Cyprus and now Canada, have implemented a “bail-in” regime that leaves depositors with the bill. Not only must you pay the bank to hold your cash but it is now at risk to bailout the very same institution. That’s why gold is a good thing to own.
Gold Is The Ultimate Currency
Gold is a beneficiary of negative interest rates and its best performance in four decades is due more to haven buying on fears of fragile global growth exacerbated by our central banks’ lame attempts to revive the global economy, saddled with too much debt. After eight years of central bank intervention using unorthodox and experimental measures, our monetary maestros have simply run out of options. Gold gained 16 percent in the first quarter, reversing the three year downtrend. A new bull market has just begun. Gold’s rise shows investors are nervous.
There has been another reason for the rise in gold. Last year central banks purchased almost 500 tonnes of gold led by Antichrist Communist China and Russia. They remain big buyers with some repatriating their stores of gold, moving their reserves “closer to home”. The year before, nineteen banks were net buyers of gold continuing a trend starting as far back as 2008. Yet their purchases have been largely price insensitive. Antichrist Communist China and Russia, having more dollars than they want, have become enormous purchasers of gold partly as a hedge against the currency debasement and inflationary consequences of the western central banks’ radical measures to revive the global economy. They also fear a collapse in the purchasing power of their dollar stocks. Instead of FX purchases, the gold purchases allow these central banks to hedge against a volatile greenback, lessening pressure on their own currencies and ironically, the inflation risk. Both countries have become the fifth and sixth largest holders, ahead of Switzerland, Japan and Canada, who sold its last ounce last year.
Gold is also a barometer of anxiety, and today there is a great deal of anxiety. The mighty metal is highly liquid and easily exchanged for other currencies. It’s controlled supply serves as a limit for central banks from printing money, putting a cap on profligate government spending. Former Fed Chair, Alan Greenspan, once wrote that, ‘without a gold standard in place, there is little to prevent governments indulging in wild credit creation.’ The balance sheets of many central banks are stuffed with debt, so their gold holdings have become increasingly important. We believe their gold purchases and repatriation are part of the refashioning of the global monetary architecture, ending US financial hegemony. So of course the price of gold can and will go much higher in the months as years ahead.
Yes, the debt service is at record lows, but the mountain of debt that’s been accumulated dictates that the only thing the economy can withstand is low rates in perpetuity. The alternative is simply unimaginable. There would be widespread ruin and perhaps even the bankrupting of a great nation.
If only we didn’t know how we got to this point. But we do. We were duped by Liar’s Brokers and now have to live with the consequences. To quote Michael Lewis one last time, “In the land of the blind, the one-eyed man is king.”
It’s well known that the US government is broke, and if it used accrual accounting instead of cash accounting it would be staggeringly worse, as all of its future liabilities would be shown. Knowing this, government officials are working tirelessly (and even on some weekends, much to the dismay of Jack Lew) to find ways to reduce spending.
Thanks to all of those long nights scrubbing the budget line by line, a way to save costs has finally been found. As MarketWatch reports,
A popular tool families use to help boost retirement income known as “file and suspend” will be taken away after April 29th of this year, courtesy of the Bipartisan Budget Act of 2015.
File and suspend is essentially a way for one person who is eligible to file for his/her retirement benefits to file, but delay getting them until age 70 (in return for an 8% per annum credit). Once the benefits are filed for, however, that person’s spouse can file for spousal benefits and begin to receive those right away, thus increasing income to the couple.
One final element of this strategy is that if the higher income earner dies, the spouse can now receive the full benefit including that 8% per year credit amount earned by delaying, which significantly increases the income of the surviving partner.
The point of cutting out this “loophole” as the government so proudly calls it, is to save money
Certainly there are no other reasonable cost cutting measures outside of closing “loopholes” for hard working American’s who earned their social security benefits (on loan the government by the way).
Despite all of the cheering by the mainstream media that the economy is “doing great” and “no recession” in sight, a look at small business sales trends and retail sales certainly suggest a very different story.
We recently saw the “retail sales figures” for March which were, to say the least, disappointing. I say this because these numbers expose the flawed economic theories of the mainstream proletariat that the abnormally warm winter and exceptionally low energy prices should boost spending due to the relative savings.
Despite ongoing prognostications of a “recession nowhere in sight,” it should be remembered that consumption drives roughly 2/3rds of the economy. Of that, retail sales comprise about 40%. Therefore, the ongoing deterioration in retail sales should not be readily dismissed.
More troubling is the rise in consumer credit relative to the decline in retail sales as shown below.
What this suggests is that consumers are struggling just to maintain their current living standard and have resorted to credit to make ends meet. Since the amount of credit extended to any one individual is finite, it should not surprise anyone that such a surge in credit as retail sales decline has been a precursor to previous recessions.
We can also see the problem with retail sales by looking at the National Federation of Independent Business Small Business Survey. The survey ask respondents about last quarter’s real sales versus next quarters expectations.
Not surprisingly, expectations are always much more optimistic than reality turns out to be. However, what is important is that both actual and expected retail sales are declining from levels that have historically been indicative of a recession.
Today, consumer credit has surged, without a relevant pickup in spending, to more than 26% of DPI. Given that it took a surge of $11 Trillion in credit to offset a decline in economic growth from 8% in the 70’s to an average of 4% during the 80’s and 90’s, it is unlikely that consumers can repeat that “hat trick” again.
A Different Valuation Measure
I recently discussed the effect of stock valuations on future long-term returns. To wit:
“I believe in long-term investing. I do think that you should buy quality investments and hold them long-term. However, what Wall Street, and many financial advisors miss, is the most important point of this argument which is ‘at the right valuation.’
Valuation, what you pay for an investment, is the single biggest determinant of future returns.
According to Dr. Roberts Shiller’s data, the Cyclically Adjusted P/E Ratio is currently hovering around 24x earnings. It is here that the problem for long-term investors currently resides. The chart below shows the average real (inflation-adjusted) 20-year returns of a $1000 investment made when P/E ratios first hit 20x or 10x earnings.”
As you can see, valuations make a huge difference.
However, not surprisingly, shortly after I published the article I received numerous emails citing low interest rates, accounting rule changes, and debt-funded buybacks all as reasons why “this time is different.” While such could possibly be true, it is worth noting that each of these supports are both artificial and finite in nature.
Currently, the aging U.S. economy, where productivity has exploded, wage growth has remained weak and whose households are weighed down by surging debt, remains mired in a slow-growth funk. This slow-growth funk has, in turn, put a powerful shareholder base to work increasing pressure on corporate managers not to invest, and to recycle capital into dividends and buybacks instead which has led to a record level of corporate debt.
These actions, as suggested above, are limited in nature. For a while, these devices kept ROE elevated, however, the efficacy of those actions has now been reached.
Historically speaking, it is unlikely that with reported earnings early in the reversion process that we will see a sharp recovery in the second half of the year as currently expected by the majority of mainstream analysts. The suggests that as long as the Fed remains active in supporting asset prices, the deviation between fundamentals and fantasy will continue to stretch to extremes. The end result of which has never “been different this time.”
Did The Fed Kill The Bear?
Speaking of the Fed, the surge in the market over the last couple of days have many scratching their heads despite deteriorating economics, weak earnings and poor geopolitical news. Of course, given the series of emergency Fed meetings, the markets are currently beating on a much longer time frame to the next, if ever, rate hike.
Of course, what is most interesting is what investor sentiment, both individual and professional, has recently accomplished.
Accordingly, the chart above, investor sentiment suggests the market has just completed a recessionary “bear market” with virtually no substantial losses. This can also be seen by looking at just the amount of “bearish” sentiment in the market as well.
As noted, the 13-week moving average of bearish sentiment has reached levels currently that are more normally associated with bottoms to corrective processes as seen in 2010 and 2011 when the Federal Reserve intervened with QE2 and Operation Twist. What is interesting is that all of the support during the current correction has been strictly “verbal” with no real change to market liquidity or accommodation.
“Make me promises, just tell me no lies.”
However, while this surge in bearish sentiment has occurred, which normally denotes a substantial level of fear by investors, there has been no substantial change to actual allocations.
While stock allocations have fallen modestly, cash and bond allocations have barely budged. This is a far different story than was seen during previous major and intermediate-term corrections in the market.
This suggests, is that while investors are worried about the markets and their investments, they are too afraid to actually make changes to their portfolio as long as Central Banks continue to bail out the markets.
What is clear is that the Federal Reserve has gained control of asset markets by gaining control over investor behavior.
“Are you afraid of a market crash? Yes. Are you doing anything about it? No.”
Again, it’s back to fundamentals versus expectations. Someone is going to be very wrong.
Just some things to think about.
Back in July of 2014, we reported that in an attempt to obtain if not compensation, then at least confirmation of bank manipulation in the precious metals industry, a group of silver bullion banks including Deutsche Bank, Bank of Nova Scotia and HSBC (later UBS was also added to the defendants) were accused of manipulating prices in the multi-billion dollar market.
The lawsuit, which was originally filed in a New York district court by veteran litigator J. Scott Nicholson, a resident of Washington DC, alleged that the banks, which oversee the century-old silver fix manipulated the physical and COMEX futures market since January 2007. The lawsuit subsequently received class-action status. It was the first case to target the silver fix.
Many expected that this case would never go anywhere and that the defendant banks would stonewall indefinitely: after all their legal budgets were far greater than the plaintiffs.
Which is why we were surprised to read overnight that not only has this lawsuit against precious metals manipulation not been swept away, but that the lead defendant, troulbed German bank Deutsche Bank agreed to settle the litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, Reuters reported citing a court filing by law firm Lowey.
Terms were not disclosed, but the accord will include a monetary payment by the German bank.
It goes without saying, that there would have been neither a settlement nor a payment if the banks had done nothing wrong.
According to Reuters, Deutsche Bank has signed a binding settlement term sheet, and is negotiating a formal settlement agreement to be submitted for approval by U.S. District Judge Valerie Caproni, who oversees the litigation. A Deutsche Bank spokeswoman declined to comment. Lawyers for the investors did not immediately respond to requests for comment.
As noted above, investors had accused Deutsche Bank, HSBC and ScotiaBank of abusing their power as three of the world’s largest silver bullion banks to dictate the price of silver through a secret, once-a-day meeting known as the Silver Fix.
None of this will come as a big surprise to readers, most of whom have been aware that this took place for years.
But wait there’s more.
In a curious twist, the settlement letter reveals a stunning development, namely that the former members of the manipulation cartel have turned on each other. To wit:
“In addition to valuable monetary consideration, Deutsche Bank has also agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement. In Plaintiff’s estimation, the cooperation to be provided by Deutsche Bank will substantially assist Plaintiffs in the prosecution of their claims against the non-settling defendants.”
The full shocking letter can be read here:
Well, that didn’t take long.
Earlier today when we reported the stunning news that DB has decided to “turn” against the precious metals manipulation cartel by first settling a long-running silver price fixing lawsuit which in addition to “valuable monetary consideration” said it would expose the other banks’ rigging having also “agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement” we said “since this is just one of many lawsuits filed over the past two years in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets, we expect that now that DB has “turned” that much more curious information about precious metals rigging will emerge, and will confirm what the “bugs” had said all along: that the precious metals market has been rigged all along.”
This was confirmed moments ago when Reuters reported that Deutsche Bank has also reached a settlement in US litigation alleging the bank conspired to fix gold prices. In other words, hours after admitting it was rigging the silver market, it did the same for gold.
Some more headlines from Reuters:
Reaches settlement in U.S. litigation alleging it conspired to fix gold prices.
Plaintiffs’ lawyers, in filing, say Deutsche Bank has signed a settlement term sheet
Plaintiffs’ lawyers say are negotiating formal settlement agreement that would be presented for judge’s approval later Plaintiffs’ lawyers say settlement contemplates a monetary payment by Deutsche Bank
Gold settlement follows similar accord involving alleged silver price-fixing that was disclosed on Wednesday Most importantly, as the actual settlement reveals, Deutsche has agreed that in addition to once again providing “valuable monetary consideration” which will be paid into a settlement fund, that like in the silver settlement it will provide “cooperation in pursuing claims against the remaining Defendants.”
And with that the floodgates open.
Here is the full settlement letter:
A strong and shallow earthquake registered by the JMA as M6.4 hit Kyushu, Japan at 12:26 UTC on April 14, 2016 (21:26 local time). The agency is reporting a depth of 10 km (6.2 miles). USGS is reporting M6.2 at the same depth. EMSC is reporting M6.1 at a depth of 15 km (9.3 miles).
According to the USGS, the epicenter was located 7 km (4.3 miles) SW of Ueki, 9 km (5.6 miles) SE of Tamana, 12 (7.5 miles) WNW of Kumamoto-shi and 18 km(11.2 miles) N of Uto, Japan.
According to JMA, the quake had seismic intensity of 7 (Shindo 7), the highest on their scale.
There are about 8 214 032 living within 100 km (62 miles).
At least nine people were killed and 761 injured by a magnitude 6.5 earthquake Thursday night that toppled houses and buckled roads in southern Japan, the government’s chief spokesman said.
Yoshihide Suga said he would visit the area Friday to assess the damage. He said 1,600 soldiers had been deployed, and TV reports showed some delivering blankets and adult diapers to the thousands of people who took shelter because their homes were wrecked or unsafe.
About 44,000 people sought refuge, though some returned home in the morning.
The quake struck at 9:26 p.m. at a depth of 11 kilometers (7 miles) near Kumamoto city on the island of Kyushu, the Japan Meteorological Agency said. There was no tsunami risk.
While spring conditions slowly set in Mongolia, 20% of the country is still left under a snow blanket, and 23 districts are experiencing white dzud (extremely snowy winter) or very similar circumstances. Because the conditions are unseasonably cold, there are concerns about an iron dzud (freezing rain) emerging in some areas.
“Dzud” is a clinical slow-onset disaster unique to Mongolia in which hot summer drought (resulting in extreme overgrazing) is followed by a severe winter and insufficient hay for winter grazing. This, coupled with heavy snows and freezing temperatures is causing large numbers of animals to die from starvation.