Posted at 9:23 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com

Money manager and economist Michael Pento says if you think the worst is over in the stock market, think again.  Pento explains, “Now, the valuation of stocks today are the most expensive in history, not around or tied or close.  We are now 155% of GDP when you look at the market cap of equities.  Stocks have never been more expensive.”

Pento says stocks are going to probably go higher for now, but Pento predicts, “I am going to run contrary to Wall Street, and I am going to tell you that you should see a significant run-up into the news of approved vaccines, new treatments and, of course, more stimulus.  We’ve got to borrow more money because $2.4 trillion wasn’t enough.  My models . . . say once this vaccine is validated and approved, this is going to be a selling opportunity for me and my investors.”

Pento also thinks that most people will not take the vaccine, including Pento.  Also, Pento says, “It’s not going to be a one and done sort of thing,” but something that will have to be given routinely like the annual flu shot.  Pento says, “This is going to pave the way for phase two of this reckoning or what I call the ‘Greater Depression.’”

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Posted at 9:19 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Now the trick will be whether they can actually get the product? Stay tuned and enjoy the ride!

Silver Short Squeeze Alert: Sprott Silver Trust To Purchase $1.5 Billion Of Physical Silver, A Jaw-Dropping 8.8% Of Annual Global Production!
July 20, 2020

As the price of silver breaks out today, a massive short squeeze may be in the works as Sprott Silver Trust has just filed to raise $1.5 billion to purchase physical silver, which is a jaw-dropping 8.8% of annual global production.

Silver Short Squeeze Alert

July 20 (King World News) – Eric King: “James, I sent you the filing where Sprott Silver Trust just stated they are going to raise $1.5 billion to purchase physical silver. This will purchase a staggering amount of physical silver in an already tight market.”

8.8% Of Annual Global Production

James Turk: “Eric, this announcement is extremely bullish news for silver. $1.5 billion at $20/ounce equates to a jaw-dropping 75 million ounces of silver, which is a mind-boggling 8.8% of annual global mining production. It is a truly staggering figure when you think about it, particularly in today’s market with extremely tight conditions for physical metal and with demand for physical silver already so high. And remember, Eric, shorts are already scrambling to cover. How will they react to this?”

Eric King: “James, the silver market is already trading so incredibly bullish, especially when you look at today’s massive breakout. That 75 million of ounces of physical silver that is going to have to be sourced, how much of a squeeze will that put on the silver shorts and impact the price of silver?”

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Posted at 10:57 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

A common question has been “why can’t they just print forever”? Quite simple, because eventually it leads to a currency crisis where the currency melts like the wicked witch of the West. Come to think of it, it is the West who relies most heavily on fiat?

A Depression Is Just What It Says (On Economics)_001

A Depression Is Just What It Says (On Economics)_002

Posted at 9:18 AM (CST) by & filed under General Editorial.

Great and Wonderful Monday Morning Folks,

      August Gold is trading higher with the current price at $1,814.90, up $4.90 with the high nearby at $1,814.90 with the low at $1,806.60. September Silver is adding value as well with its trade at $19.88, up 11.8 cents with the high right there at $19.895 with the low down at $19.655. Another Maginot Line has been crossed in the US-Dollar Index with the pegged value at 95.72, down 16.9 with the low right there at 95.695 along with the high at 96.145. All this, of course happened before 5 am pst, the Comex open, the London close, and after another fine example, over the weekend, of “Stupid is as Stupid does”, as we all get to look at Portland’s left coast elected

      Venezuela’s Bolivar drop caused Gold to gain 92.88 over the weekend with the last trade at 18,126.31 Bolivar with Silver’s gaining 3.047 with its price at 198.552 Bolivar. Argentina’s Peso price for Gold is now at 129,639.31 proving an 804.33 A-Peso gain with Silver’s price at 1,420.10 providing a 23.37 A-Peso’s gain. The Turkish Lira’s price for Gold also gained 56.51 over the weekend with the last recorded price at 12,447.04 Lira with Silver gaining 2.011 T-Lira’s with the last trade at 136.340.

      July Silver’s Delivery Demands are now at 1,594 fully paid for 5,000-ounce contracts and with no Volume or Price to offer so far this morning. Friday’s full trading day within the delivery system happened in between $19.71 and $19.35 with the last recorded trade at the high with the adjusted close at $19.685 as 31 contracts swapped hands and as the delivery system served up 47 receipts somewhere between here and London. The shorts have no choice but to keep shorting. If they leave the field of play, Silver would be sharply higher with today’s Overall Open Interest now at 180,111 Overnighters as another 1,357 short contracts had to be added or things would be more in our favor. Muhahahaha!

      July Gold’s Delivery Demands are now at 66 fully paid for 100-ounce contracts and with a Volume of 12 already up on the board with a trading range between $1,812.60 and $1,807 with the last buy at the high, up $4.30. This proves 113 receipts got settled out during Friday’s trades which had a price range between $1,810.10 and $1,798.50 with the last trade at the high, yet Comex settled the closing price at $1,808.30, with 24 contracts getting settled out on the last day of the week. The fear trade is really showing up behind Gold’s price as another 8,508 short contracts had to be added with the Overall Open Interest now at 587,837 Overnighter’s going against the physicals.

      We have some really big things happening in the early morning as Nine Chinese financial institutions got nationalized in a single day as 1 Trillion Yuan in assets got support, as we ask; is this a new world record in taking over financial institutions for a single country in a single day? I think it is, we’ll wait for more confirmation from others as things start to get really wobbly, not only in the currencies, global politics, but as team Obama become more and more panicky as Q posts continue to expose what the media refuses to reveal in any “news” as post 4599 exposes the Trilogy, and as Post 4605 and 4606 revealing the final goodbyes (you’re fired sign) to Christopher Wray, with General Flynn gets relabeled A Real American Hero!

      Cast aside all doubt, it’s all coming together now. Things are changing and it looks like stuff is getting better by the moment, that is for law abiding citizens, not the criminally elected. Keep your metals close, have a smile on your face and a prayer for all, and as always …

Stay Strong!

Jeremiah Johnson

JeremiahJohnson@cableone.net

More J.Johnson content is available with purchase of a JSMineset subscription.

Posted at 1:19 PM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Chris Martenson is a futurist, economic researcher and holds a PhD in toxicology from Duke University.  He is telling people to “brace for impact” because we are well beyond the point of no return economically and financially speaking.  Martenson explains, “We are not doing anything except steering towards a cliff edge at this point in time.  We had the 2008 financial crisis, and we should have learned a couple of lessons.  We didn’t learn any lessons, and I think we have just enshrined these lessons into something that is really going to bite us.  The Federal Reserve, Plunge Protection Team and all the organs of state are all geared towards one thing and one thing only, and that is giving more money to rich people.  I believe we are in the Fourth Turning . . . and one of the hallmarks of this is loss of faith in institutions.  The Federal Reserve is still held up as a benevolent organization.  They care about inflation and unemployment, and none of that is true.  What they care about is shoveling and funneling big profits to big banks.  So, the Federal Reserve deserves to lose every bit of respect anybody has ever held for it.”

Martenson goes on to say, “I think this is ruining our society.  This is the kind of thing that I believe led Plutarch way back a couple of thousand years ago to say, ‘The oldest and most fatal ailment of all republics is a gap between the rich and the poor.’  The Federal Reserve is busy enshrining and ensuring that we have the largest and steepest wealth pyramid we have ever seen. . . . The Federal Reserve is creating the conditions that lead to a future that I don’t want to go toward.  I don’t want to live in a place where mobs rule, people are unhappy and riots are happening. . . . The Federal Reserve is the entity that is most responsible for most of the pain we see going on around us.  I wrote an article called ‘Brace for Impact’ recently because this is a trend I am seeing, and it is accelerating and not slowing down.  There are no signs that team elite is going to say we have taken enough . . . let’s start reversing some of that.  No, they are going to keep doing what they do, and they won’t stop until something breaks.”

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Posted at 11:29 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Avalanche warning!

Dave

Warnings Grow: “We Are in a Massive Economic Downturn”
July 15, 2020

Yesterday, Federal Reserve Governor Lael Brainard gave a speech via webcast to the National Association for Business Economics. She warned, effectively, that the rosy spin coming out of the Trump administration needed to be weighed against the reality on the ground. Brainard raised the caution that credit downgrades on bonds and corporate defaults are occurring at “a faster pace than in the initial months of the Global Financial Crisis.” Brainard explained as follows:

“In downside scenarios, there could be some persistent damage to the productive capacity of the economy from the loss of valuable employment relationships, depressed investment, and the destruction of intangible business capital. A wave of insolvencies is possible. As the Federal Reserve Board’s May Financial Stability Report highlighted, the nonfinancial business sector started the year with historically elevated levels of debt. Already this year, we have seen about $800 billion in downgrades of investment-grade debt and $55 billion in corporate defaults—a faster pace than in the initial months of the Global Financial Crisis. Several measures of default probabilities are somewhat elevated. It remains vitally important to make our emergency credit facilities as broadly accessible as we can in order to avoid the costly insolvencies of otherwise viable employers and the associated hardship from permanent layoffs.”

The warnings coming out of yesterday’s House hearing on “Promoting Economic Recovery: Examining Capital Markets and Worker Protections in the COVID-19 Era,” raised similar concerns.

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Posted at 11:25 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Another solid overview from our friend Erik.

COVID 19 and the Great Depression of 2021_001

COVID 19 and the Great Depression of 2021_002

Bill Holter’s Commentary

Does 331% make the entire world a banana republic?

Global debt hits record high of 331% of GDP in first quarter: IIF
July 16, 2020

WASHINGTON (Reuters) – Global debt surged to a record $258 trillion in the first quarter of 2020 as economies around the world shut down to contain the coronavirus pandemic, and debt levels are continuing to rise, the Institute for International Finance said on Thursday in a report.

The IIF, which represents global banks and financial institutions, said the first-quarter debt-to-GDP ratio jumped by over 10 percentage points, the largest quarterly surge on record, to reach a record 331%.

While the rise in debt levels was well below average quarterly gains seen from 2015 to 2019, the pace of global debt build-up by governments, companies, financial institutions and households had accelerated since March, it said.

Overall gross debt issuance hit an “eye-watering” record of $12.5 trillion in the second quarter, compared with a quarterly average of $5.5 trillion in 2019, the IIF said. It noted that 60% of those issues came from governments.

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Bill Holter’s Commentary

Escape from NY! But why?

Greenwich Mansions With Pools Are All the Rage in Pandemic Era

July 16, 2020

(Bloomberg) — For Greenwich homebuyers during the peak of the pandemic, bigger was better. And it helped to have a pool.

The average size of houses that sold in the second quarter — 5,034 square feet — was the largest in 10 years of data-keeping, according to a report by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The quarterly average in the Connecticut town had never before topped 5,000 square feet.

BB16NQji.img

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Posted at 10:57 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

“What we’ve seen over the last decade is the transformation from risk-free interest to interest-free risk”

Interest was not “risk free” 10 years ago, it was only perceived to be. When all is said and done, $5,000 will be a joke, maybe even for silver?

Soaring Inflation To Send Gold To $5000 “Doomsday” Fund Predicts
July 15, 2020

Picking up on what Russell Napier said recently, when the formerly iconic deflationist threw in the towel and now expects inflation because “control of money supply has permanently left the hands of central bankers”, a fund manager who returned 47% this year by betting heavily on gold and Treasuries says the next decade is going to be marked by inflation that central banks are powerless to control.

Diego Parrilla, who heads the $450 million Quadriga Igneo fund dubbed “Doomsday” by Bloomberg, perhaps because unlike most of his peers he refused to buy into the biggest groupthink trade ever namely FAAMG stocks, said unprecedented monetary stimulus is fueling asset bubbles and corporate debt addiction, which renders rate hikes impossible without an economic crash. In the ensuing market mania, the manager whose portfolio is loaded up with cross-asset hedges says gold could rise as high as $5,000 an ounce in the next three to five years, more than doubling from its current price of $1,800 which is just shy of all time highs.

“What you’re going to see in the next decade is this desperate effort, which is already very obvious, where banks and government just print money and borrow, and bail everyone out, whatever it takes, just to prevent the entire system from collapsing,” Parrilla told Bloomberg in an interview from Madrid.

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