USD point and figure chart- 92-93 level crucial! If the Fed doesn’t hike interest rates by its June 14 meeting expect the 93 to be reached and breached! It will show the weakness of the US economy! Gold/silver will flourish.
A sign of times and a legacy cost from Private Equity Players who really have proved themselves to be asset strippers of ability.
Gone are the times, when Private Equity Players would buy businesses and remake them to be sold at a future time for a multiple of acquisition cost. Somewhere lost with the same mindset that brought us derivatives and Credit Default Swaps and the like that surfaced in 2007 and from which the economy has never recovered. It is all about financial manipulation and wizardry that carries a price which comes due.
So when people say things will be better and there is no real North American adjustment underway, do not drink the Koolaid. It will affect all of us in one way or another, without exception. As all of North America is experiencing a retail buying decline. And it is not all about internet shopping as actual dollar sales are declining because people are afraid and running out of spending room.
It matters not, whether you are in America or Canada adjustment to declining living standards is inevitable as businesses close or cut back affecting actual employment while putting a damper on expectations and spending. Daily, one can see apprehension in voices and faces of many retail staff who are worried about their jobs. Many of them are putting off dealing with health care issues that will only come back in the future with an increased burden for them and society. And do not think the banks are not watching looking over their shoulder at mortgage risk. Rates do not have to rise to dampen buying. All it takes is a more defensive posture on the part of banks as to who they think is creditworthy to slow sales and lower prices.
Like always, it will be the consistency and quality of earning power that segregates actual buyers from wannabes. And in so doing people who were mortgage qualified now will find themselves under scrutiny in the future as banks look at weakness in either employment tenure or actual employer continuity. It is also a reason you will see people and banks prefer closed ended term mortgages and you will see Credit Union mortgages grow during these times as it is a growth environment for them at the expense of banks.
And yes, for a turn around to occur, we need to see new patient capital invested into the technology of tomorrow to create new industries or remake existing ones into wealth drivers of tomorrow. Sadly, we can expect little if anything from the current band asset strippers bend on self gratification and personal gain at the expense of their employees and the public.
When I was in school, a trillion was only used for the distance light traveled in a year, as in 5.87 trillion miles. A number impossible of any meaningful comprehension.
To understand how large an amount a trillion dollars is, you have to describe it in numbers you can relate to. One million dollars, as in four houses at $250,000 each, is about as large a number as I can get my mind around. I can, also, understand a year of 250 working days with holidays and weekends not counted.
If you spent one million dollars a day, every working day, you would spend 250 million dollars in one year. If you continued to do that for 4 years, you would spend 1 billion dollars. If you wanted to spend 1 trillion dollars, you would have to spend 1 million dollars a day for the next 4,000 years!
If you were able to pay down the national debt by 1 million dollars a day, you would have to do that for the next 80,000 years!
Jim Sinclair’s Commentary
The truth hurts sometimes.
Dollar chart! We are now 96.71! I think this could be the biggest danger in the market . The expectations of an interest rate hike for June 14 is NOT WORKING! WHY? BECAUSE THE ECONOMY IS IN SHAMBLES!
S&P, Moody’s Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State
June 02, 2017
Illinois had its bond rating downgraded to one step above junk by Moody’s Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending.
S&P warned that Illinois will likely lose its investment-grade status, an unprecedented step for a state, around July 1 if leaders haven’t agreed on a budget that chips away at the government’s chronic deficits. Moody’s followed S&P’s downgrade Thursday, citing Illinois’s underfunded pensions and the record backlog of bills that are equivalent to about 40 percent of its operating budget.
“Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance,” Ted Hampton, Moody’s analyst, said in a statement. “During the past year of fruitless negotiations and partisan wrangling, fundamental credit challenges have intensified enough to warrant a downgrade, regardless of whether a fiscal compromise is reached.”
Gingrich: ‘The Deep State Exists’
March 14, 2017
Former Speaker Newt Gingrich (R-Ga.) says there is a “deep state” of entrenched federal government employees undermining President Trump.
“Of course, the deep state exists,” Gingrich told the Associated Press on Tuesday. “There’s a permanent state of massive bureaucracies that do whatever they want and set up deliberate leaks to attack the president.
“They are fighting to keep hold of their power. This is what the deep state does: They create a lie, spread a lie, fail to check the lie and then deny they were behind the lie.”
Silver sets up new launch point — $18.44 and $18.77 crucial levels. Courtesy of CIGA GG.
Look At This Major Launch Point Set Up In The Silver Market!
June 01, 2017
The primary long-term buy signal was back in February 2016, as this momentum chart moved out above the lower red line (price closed that month at $14.89).
In our May 4th, 2017 report we showed some archival examples of how gold transitioned in the past from bull to bear and bear to bull. Same concepts apply to silver and many markets. It is usually a laborious process involving a year and a half or so before a new long term trend change is clear enough for most to see, though annual momentum usually signals the new trend outcome very early on…