Posts Categorized: USAWatchdog.com

Posted by & filed under USAWatchdog.com.

September 17, 2017
Resource analyst and futurist Chris Martenson says everyone should be taking notice of our “dangerous markets.” At the center of the danger zone is the declining U.S. dollar. Martenson explains, “We are talking about a steady erosion of the dollar as a reserve currency. I think that is most likely. The only thing that could make that really go fast is some kind of war. The United States and China, we got to keep our eye on this because Trump has been threatening a trade war with China. China responded and said if you do that, we may dump the dollar. . . . So, there is all this trade and financial back and forth and maybe even actual war at some point. . . . China has the ability to really impact the dollar in a big way on the world stage. We better hope it does not come to that because a slow erosion we can adjust to; a quick erosion is going to really roil the markets and maybe blow a few of them up.”

Martenson contends the U.S. could see hyperinflation in a short time if China “dumps the dollar.” Martenson explains, “The way that works is let’s say they want to unload $500 billion on some Tuesday morning. Who is going to buy that $500 billion? Who is on the other side of that trade? Well, if there are not enough people bidding for those dollars, the price has to fall until you find enough people to absorb those, and the dollar would fall in value against all other sorts of other things such as other currencies, oil, gold, silver and all those things. . . . We would be looking for a paired event. What we would be looking for is interest rates starting to rise on Treasuries and the dollar starting to fall in value in value against a variety of things. Once we see those two things, we know we have a financial war or a monetary war. . . . That’s what blows up the derivatives market. That’s what makes difficulties for traders. That’s what makes the high frequency computers say I don’t like this and bolt and instantly evaporate from the markets.”

Martenson also points out, “The Dow is hitting all-time highs. So, it can’t be that bad, right? The Dow is used as a signaling device, and it says have faith in your leadership and everything is fine. Under the covers, obviously, things are not fine. The people I talk to are nervous and worried. One reason is because it’s fall, and that is sometimes when we see these corrections, but the other reason is everything we track is getting more and more fragile. These markets . . . are held together by confidence. . . . I can’t tell you the number of people that used to be investors that say they just don’t trust these markets. They are rigged and they understand that. They don’t want any part of that.”
More…

Posted by & filed under USAWatchdog.com.

August 23, 2017

Financial newsletter writer Lior Gantz is deeply concerned about the political divide gripping the nation.Gants contends, “I think the U.S. is divided politically to a point where it’s dangerous. I have not studied any time in history where the U.S. was so politically divided.  Just to give you an idea, 61% of Trump supporters say that Trump cannot go wrong.  Whatever he does, he cannot go wrong.  Now, 57% of the people who are against him say no matter what he does, they will never support him.  This country is very divided, and division is the most detrimental part of any democracy.”

Gantz also connects the dots between economic stability and political stability with the recent visit by Treasury Secretary Steve Mnuchin to see America’s gold held in Fort Knox. Mnuchin tweeted out, “Glad gold is safe.”  Gantz says the fact Mnuchin felt he had to do this now is worrisome.  Gantz contends, “The fact that he tweets about it saying the gold is here, it’s fine, I would say that is alarming, but it is also very amateur on the part of government.  With the debt ceiling, it looks like this is meant to reassure foreign investors and the bond holders, people like the Chinese, the Russians and Middle Easterners, that the U.S. is solid and the U.S. is not divided, and the debt ceiling will be raised, that they won’t default. . . . To me, it looks like a very failed attempt to create assurance with the public, either to the foreign or American public.  It all plays into this volatility once September arrives.”

Gantz says the global economy is filled with extreme debt and is susceptible to panic. Gantz says, “The refugee situation in the Middle East and the division in the U.S. is all a cause to worry about what I call discontinuity.  Discontinuity means a brief market shutdown.  It could be a few days when markets shut down and exchanges shut down. . . . If you have discontinuity, that is a major game changer.  What can lead to this is a terrorist attack, a large terrorist attack like you saw on 9/11.  It could be a nuclear attack or the threat of a nuclear attack, or a major bank run.  If you have any of these three happening in Europe or in the United States or in China, all of these derivatives that are very problematic, they will change their value in a matter of hours or days. . . . These effect the balance sheet of most banks, governments, institutions, sovereign wealth funds, pension funds and this is insane.  So, a discontinuity is definitely the worst thing that can happen.”

More…

Posted by & filed under USAWatchdog.com.

August 20, 2017

Economist John Williams is putting out a rare “Alert” on his popular ShadowStats.com newsletter. What does Williams see that scares him?  Williams explains, “There are several factors.  Number one, I think we are at risk of an extreme market reaction just tied to the economy slowing down unexpectedly against headline expectations.  That is going to mess up the Fed’s planning for raising rates and liquidating their balance sheet.  That is going to force them back to quantitative easing (money printing).  That, in turn, will savage the dollar.   As the dollar plummets, so will U.S. stock prices.  They are heavily supported by the influx of capital from abroad. . . . Given the underlying fundamentals in the markets and in the economy, I think all the components are in place for one of the great financial panics of all time.”

Williams says this is why gold is poised to go up. Williams says, “Gold is the ultimate hedge against all the craziness in the world and very bad financial markets, dangerous currency markets and bad inflation.  Physical gold is the ultimate hedge because it retains its value over time. . . . I have been looking for it to go higher, and it is going to go a lot higher as the circumstances deteriorate.”

At some point, Williams says, “You are going to see a plunge in the dollar. . . . All of a sudden, they are going to stop raising rates . . . and as the economy deteriorates and puts more financial stress on the banking system, they’ve got to go back to quantitative easing. They can’t let the banking system fail.  They have propped up the dollar, but you are going to see a plunge in the dollar.  The fed does not have to actually move to quantitative easing for the dollar to tank, you just have to have the markets shift in sentiment to that effect, and you will see the dollar tank.”

Williams says, “A big factor in the dollar’s value is political stability or the perceived political stability. Right now, you have a circumstance in Washington where there is tremendous political discord.  I can’t remember seeing anything like this in the past.  The President has effectively had his options shut off in terms of moving the economy.  I was looking for him to get elected because of the weakness in the economy. . . . This intensifies the problems for the economy, but I can tell you right up front it’s a big negative for the dollar. . . . If you have a move for impeachment for the President, that will tank the dollar.”

More…

Posted by & filed under USAWatchdog.com.

Jim Sinclair’s Commentary

This is logical. Everyone else is working to dump Trump out of the presidency, certainly the MSM and the Elite’s Snobs Club. You think increased interest rates or any kind of normalization is warranted? You are bonkers re: timing.

Fed Trying to Cripple Trump Economy-Danielle DiMartino Booth
June 21, 2017

Financial expert and former top Federal Reserve insider Danielle DiMartino Booth says the latest Fed rate hike is nothing less than an attempt to make life worse for President Trump. DiMartino Booth explains, “They are trying to do the opposite of what they did a year ago because the people who occupy the White House have changed. That’s the only feasible answer I can come up with to explain the Fed tightening into a weakening economy. Their own metrics don’t lie. Nonfarm payroll growth has slowed appreciably over the last 12 months, and their favorite inflation metric is back below 2%. These are the rules they have made up, not me. They (the Fed) are making policies against their own rules, and there has to be a reason for it.”

DiMartino Booth wrote a popular book called “Fed Up” that reveals the Fed’s manipulation of the financial markets and says flat out, “The Federal Reserve is bad for America.” DiMartino Booth says massive manipulation is the only way you can explain rising federal debt and stagnant or falling interest rates on the 10-year Treasury bond. DiMartino Booth contends, “The only way you can fabricate the surreal balance between growing debt and falling interest rates is to manipulate that. . . . These are central bankers gone wild. . . . In 2008 and 2009, the credit markets were closer to $200 trillion in size. Today the credit markets are closer to $300 trillion in size, and we still can’t say what and where the next systemic risk lies.”

On gold, DiMartino says, “I think gold is in the very late stage of a correction phase. Once we get a sniff of true market reaction to any of these geopolitical events, I think you could see gold take off like a boomerang or a hockey stick. . . . If there is any slowing in the global economy, then the safe haven will not necessarily be U.S. Treasuries. The ultimate safe haven is gold.”

More…

Posted by & filed under USAWatchdog.com.

June 11, 2017

Analyst/trader Gregory Mannarino says do not be fooled by the stock markets at or near all-time highs. Friday, the tech heavy NASDAQ suffered a massive selloff late in the day after hitting all-time highs. What happened? Mannarino explains, “There is no doubt that we are in financial fantasyland. It is epic. So, have we just witnessed the bursting of this bubble? It is very possible, and the reason why is because it came out of nowhere. It wasn’t driven by a geopolitical event. It wasn’t driven by a downgrade. It wasn’t driven by anything, it just happened. . . . There is going to be a moment of reckoning. If this is real. If this is an actual bursting of a bubble here, the tech bubble, we might get a follow through on Monday or we might get a bounce, and that will lead to a follow through. . . . I am telling people to watch out because the fact this came out of nowhere and driven by nothing is a big tell.”

Even if this is not a sign of a meltdown, one is baked in no matter what, according to Mannarino. Mannarino contends, “Nothing is real here . . . . You watch these financial commentators talk about this market like it is real. If it were real, the Federal Reserve would not be taking the largest part of this market for the better part of a decade now. They are artificially suppressing interest rates and creating bubbles like we have never seen. These are the worst distortions that have ever been seen in the history of the financial world. That’s a fact. It’s worse than the Dotcom bubble and way worse than the 2008 meltdown. This one has the potential to make the last two look like walking through Central Park with an ice cream cone. Are they going to use this against President Trump? They are going to twist this, and we need to be ready for anything.”

The so-called Deep State has been trying to take President Trump down, and nothing has worked. If the Deep State cannot take Trump down, what are they going to do? Mannarino says, “They are going to collapse the economy. They are going to wipe out the economy, and they are going to hurt everybody. Housing is in a bubble and it’s cracking. . . . The markets are in bubbles that are truly epic. This is all being supported on the back of a debt bubble. That’s what they are going to do. No doubt about it. If they can’t get Trump any other way, they are going to collapse the economy. . . . We are going to see a wave of wealth go from one group of people to another group of people. This is the setup that has been going on for a long time. . . . There are those on the inside that are determined to bring down this country. If this thing comes apart, we have the potential for civil war right here in the United States.”

More…

Posted by & filed under USAWatchdog.com.

May 28, 2017

Resource analyst and futurist Chris Martenson says, “I’d rather look stupid now than look stupid later.” Martenson thinks the stock market rise since the last crash is mostly manufactured by central banks. Martenson explains, “What in the heck is going on is real simple. We have central banks who have now taken over everything in the markets. Let’s be clear, markets go up when they are really well supplied with liquidity. We have $200 billion or more a month coming into these markets . . . these central banks are dumping $200 billion, sometimes as much as $250 billion a month into the markets.”

Martenson thinks what the central bankers are doing will not go on forever. Martenson contends, “The mantra of the entire system in D.C. and Wall Street has been let’s just borrow more. Let’s just kick the can down the road. I don’t know when that ends or when that breaks, but it’s mathematically impossible that this all gets paid off at this point. So, the question remains, who’s going to eat the losses? In times past, the banks have been very good at heads they win and tails you lose or we lose. . . . I think this ends badly because it’s very, very unfair. That unfairness will bring social consequences. People are primates, and we don’t like unfair. . . . That level of injustice is building. If you don’t understand that base level of injustice, you don’t really understand why Trump got elected. You don’t understand why populism is rising all over the globe. It’s because “We the People” are starting to figure this out. It’s a scam, and if it looks and smells like a fraud, it’s a fraud. The markets are highly fraudulent at this point. They’re very, very rigged.”

More…

Posted by & filed under USAWatchdog.com.

The latest is called “Fiscal Bloodbath Coming this Fall-David Stockman.” Sky high stock and bond prices have former Reagan Administration White House Budget Director David Stockman worried because we are on our way to a big financial crash. Stockman explains, “Yes, absolutely. The market is insanely valued right now. They were trying to tag, the robo machines and day traders, they were trying to tag 2,400 on the S&P 500. They ended up at 2,399, I think, but the point is that represents about 25 times trailing earnings for 2016. We are at a point in the so-called recovery that has already lasted 96 months. It’s almost the longest one in history. What the market is saying is we have reached the point of full employment forever. There will never be another recession or any kind of economic surprise or upset or dislocation. The market is pricing itself for perfection for all of eternity. This is crazy. . . . I think the market could easily drop to 1,600 or 1,300. It could drop by 40% or even more once the fantasy ends. When the government shows its true colors, that it’s headed for a fiscal blood bath when this crazy notion that there is going to be some Trump fiscal stimulus is put to rest once and for all. I mean it’s not going to happen. They can’t pass a tax cut that big without a budget resolution that incorporated $10 trillion or $15 trillion in debt over the next decade. It’s just not going to pass Congress. . . . I think this is the greatest sucker’s rally we have ever seen.”

So, when is cold hard reality going to set in? Stockman contends, “There will be no bid for the stock once the panic sets in. We’re going to an hit and air pocket. The S&P 500 is going to drop by hundreds and hundreds of points sometime over the next few months as we drift into this unexpected crisis. . . . I would target sometime between August and November because that’s when the rubber is going to meet the road on a debt ceiling increase when they are out of cash. Washington is going to end up in vicious political conflict over what to do about the debt ceiling. . . . It is going to be one giant fiscal bloodbath the likes of which we have never seen.”

So, what should you do right now? Stockman says, “The main thing is get out of the markets. These markets are unstable. They’re rigged, and there is no reason to own stock at this point of the game. It is so overvalued. Maybe you can get another two or three percent up, but you are facing another 30% or 40% down. The risk/reward is horrible. . . . The bond market is one giant bubble because the central banks have been buying all these bonds worldwide. They’ve been buying trillions of dollars’ worth, and they are still buying a trillion dollars’ worth on an annual basis. All that is coming to a halt. The Fed has finally run out of dry powder. They are out of the bond buying business. They are even talking about the initiation of the shrinkage of their balance sheet. That clearly needs to happen . . . . The central banks are finally getting to the end of the road. There isn’t going to be any more money printing, and that is going to leave a giant mess on the doorstep of all the fiscal authorities. It’s going to make the bond market a particularly dangerous place. There is a $100 trillion global bond market, and this is the biggest bond bubble the world has ever seen.”

More…

Posted by & filed under USAWatchdog.com.

April 23, 2017

Market expert and financial writer Bill Holter says elite were in a “panic” last week to try to push down the price of gold and silver. Holter explains, “You have to understand that gold is the direct competitor versus the dollar. Other currencies in the world compete with the dollar, but the dollar is the reserve currency. It supplanted gold in 1971. Gold and the dollar are direct competitors or arch enemies, or whatever you want to call them. The best way to make the dollar look good is to make gold look bad. That’s what the purpose of all these naked sales or contracts are to suppress the price (of gold and silver). That’s the purpose of it. . . . Tuesday, Wednesday and Thursday were three big sales back to back to back, which shows the captains of the dollar are panicking. The dollar definitely looks like its rolling over and has been taking some fairly sizable drops intraday.”

Holter also contends, “The gold market is at an inflection point. The silver market is at an inflection point, and the stock market is at an inflection point. There are inflection points everywhere, and the dollar is definitely starting to look weak.”

Holter says the financial and geopolitical landscape is a minefield that could detonate at any time. Holter says, “I have long said that because of the derivatives outstanding today, once something blows up, the whole system blows up within 48 hours. The globe will spin twice, and basically the markets will close. It really amazes me that there are so many potential fire events out there, and yet there is zero concern. . . . You are going to wake up one morning and something somewhere will have already happened. At that point, it will be too late for you to do anything. You are going to wake up and find out there was a dog fight between a Mig and U.S, fighter jet or a sub was sunk or a big bank becomes insolvent. Who knows what it’s going to be or where it’s going to come from, there are just too many of them. The point being is it’s here and now. It’s a dry barn, and they are flicking matches all over the world.”

More…