rope fray

Over the past two weeks, ZeroHedge has chronicled another dramatic rise in the TED Spread. What does this mean and what might this portend for gold? Hmmm…those are excellent questions.

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As an American, I hereby apologize to the world.  If you thought the US Presidential Election was crazy thus far, you haven’t seen anything yet.  Jason and I survey the political landscape and tie it into what’s going on with our economy and financial markets.  – Eric Dubin

forward brick wall

TND Editor’s Note:  Philip Kennedy and I talked about the state of our financial markets and economy last week, as well as how the election cycle fits into the drama.  We attempt to wrap our minds around how the “end game” will unfold.

stock market crash man

The discussion about p/e ratios and other valuation ratios derived from Company-issued GAAP accounting financials is idiotic.  The GAAP accounting allowances have been liberalized beyond a Bernie Sanders wet dream over the last 20 years.   The p/e ratio at the peak of the tech bubble is completely different from the p/e ratio at the top of the 2007 stock bubble which is completely different then the p/e ratio now.

If 1999’s or 2007 GAAP standards were applied to today’s earnings, the P/E ratio on the S&P 500 would be at least as high as 65 p/e ratio registered in 2007.   By several other metrics, most notably market cap/sales ratio, the current stock market is by far the most overvalued in history.

And that does analysis does not incorporate any adjustments for the fraud component of contemporary corporate accounting.

The S&P 500 and Dow are hitting all-time highs this week.   This was triggered by the Ben Bernanke influenced Bank of Japan decision to engage in “helicopter money” activity in an attempt to stimulate economic activity.  Notwithstanding the fact that Bernanke is likely the most destructive Central Banker in history, Japan’s decision will end in destruction of its currency.  Maybe that’s what the NWO’ers are working toward achieving anyway.

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empty-vault-man-silverTND Podcast Spotlight:  Wall St For Main St

Jason Burack of Wall St for Main St interviewed returning guest, precious metals expert & paid consultant for the gold & silver mining industry, David Jensen. David is also a follower of Austrian School Economics.

Before they discuss David’s newest article, Jason first asks David about his opinion of the global economy through his Austrian School lens. David and Jason talk about the problems with Keynesian Economics and how Keynesianism and Monetarism have created enormous debt and economic problems the global economy can next longer handle.

Next, Jason asks David to discuss his newest article, which is available: click here.

Jason and David discuss gold and silver manipulation and the state of the gold and silver mining industry.

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wall street for main street bio photoAbout Wall Street From Main Street
We provide in depth content from many investing experts all over the globe. Over 250 interviews with many top experts including Jim Rogers, Doug Casey, Dr. Marc Faber and Jim Rickards! Over half a dozen billionaires interviewed! Unique, in depth round table discussions with experts on interesting investing topics about different asset classes and sectors of the economy.  Wall St For Main St, LLC was founded by Jason Burack from JasonBurack.com and Mo Dawoud from Momoney Blog in 2009.  We are a unique investor education and financial education start-up company out of the DC/Northern Virginia area with a mission to revolutionize the way people learn how to invest.  Visit our website (click here) and our YouTube channel (click here).
Deutsche Bank

Deutsche BankTND VideoCast Spotlight:  Deutsche Welle or DW is Germany’s international broadcaster.  The following mini-doc covers the company’s travails.  DW focuses on the point of view of employees, along with discussion about the condition of the company.  To be perfectly blunt, DW doesn’t even scratch the surface when it comes to the financial rot that permeates Deutsche Bank’s books.  Regardless, this looking glass into the perspectives of some of the bank’s employees makes the five minute clip worthy of spotlighting. – Eric Dubin, Managing Editor, The News Doctors

 

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Silver Takes the Gold: Commodities Halftime Report 2016 By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors Here we are at the halfway point of the year, less than two months away from the Rio 2016 Olympic Games. As a group, commodities are the top performing asset class, beating domestic equities, the U.S. dollar…

If Cramer didn't have a CNBC leash on him, he's be yelling 'Booyah' and throwing toy bulls around

TND Exclusive:  Eric Dubin

These are beautiful reversal moves. In the face of this level of buying interest, the cartel is failing to contain the tidal wave of paper gold and silver buying interest on the COMEX, while physical demand is also quite strong, worldwide, despite a temporary cooling of visible/reported purchases by the Chinese government.

If Cramer didn't have a CNBC leash on him, he's be yelling 'Booyah' and throwing toy bulls around

If Cramer didn’t have a CNBC leash on him, he’s be yelling ‘Booyah’ and throwing toy bulls around

 

gold reversal - july 8 - 2016

 

We are in the end-game and it’s unfolding along the timeline I outlined in the 4th quarter of 2014. We are in a process decline for the standard equity markets that will indeed have a phase shift acceleration once the powers that be lose what they continue to maintain: the confidence of the men and women that manage the vast majority of money under management in the Western world. That amorphous amalgamation of capital is starting to move against the stewards of the US Dollar Paradigm and the financial system that grows out of it.

A great many “analysts” and pundits in the alternative asset community continue to get this overall phase shift timing totally incorrect because they don’t have a big enough multi-disciplinary-informed “color pallet” to paint an accurate picture.  Thus, we have incorrect assessments of how the Greek Crisis timeline would unfold and serve as a delayed, contributing trigger versus crashing the market last summer.  Same story with understanding how to place the walking dead Deutsche Bank into proper context.  Deutsche Bank is not a “black swan,” but countless pundits continue to repeat that theme.  Deutsche Bank is kindling on the funeral pyre of our hyper-financialized Western financial system.

This is just a TND Market Brief.  Over the weekend, I’ll publish more detailed analysis.  I will probably link that to the Silver Doctors podcast Doc and I record later today (look for that to be published by Saturday).

brexit

brexit

TND Podcast Spotlight:  Wall Street For Main Street

Jason Burack of Wall St for Main St interviewed first time guest, Managing Director of Wind Rock Wealth Management http://windrockwealth.com/, Christopher Casey.

During this 30+ minute interview, Jason starts off by asking Chris about Brexit and if he thinks it’s good for freedom?

Chris says it’s too early to tell but that UK politicians, bureaucrats, central planners and Bank of England central bankers are good at screwing things up in the UK economy without help from the European Union (EU).

Jason and Chris talk about whether the economic and political elites expected the Brexit vote to turn out the way it did.

Next, Jason asks Chris how he found the Austrian School of Economics and why he likes it?

Chris talks about his background learning economics, reading books about economics and how after reading Milton Friedman he found a book from Mark Skousen called, Economics on Trial.

Jason and Chris discuss Austrian School Economics and why it’s good to learn and discuss Murray Rothbard’s book about the 1929 Great Depression.

Next, Jason asks Chris about stock market valuations and if it’s likely there’s a potential stock market crash in the next 6-12 months? Chris says there’s a high probability of a crash during that time period because valuations, especially using price to revenues, are at all time highs.

Jason then asks Chris about the rally in oil in 2016 and if it’s sustainable?

To wrap up the interview, Jason asks Chris about precious metals, the importance of diversification in one’s investment portfolio and whether as a money manager for clients he is worried about counter party risk and bail ins with potential bank failures on the horizon?

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wall street for main street bio photoAbout Wall Street From Main Street
We provide in depth content from many investing experts all over the globe. Over 250 interviews with many top experts including Jim Rogers, Doug Casey, Dr. Marc Faber and Jim Rickards! Over half a dozen billionaires interviewed! Unique, in depth round table discussions with experts on interesting investing topics about different asset classes and sectors of the economy.  Wall St For Main St, LLC was founded by Jason Burack from JasonBurack.com and Mo Dawoud from Momoney Blog in 2009.  We are a unique investor education and financial education start-up company out of the DC/Northern Virginia area with a mission to revolutionize the way people learn how to invest.  Visit our website (click here) and our YouTube channel (click here).
market manipulation

market manipulationRELATED:

TND Guest Contributor:  Dave Kranzler

All morning Fox Business has had a green banner posted that exclaims, “stocks stabilize.” So down 5% in two days followed by a 2.7% bounce in a little more than 1 day of trading is defined as “stabilizing?”

How about the fact that the S&P 500 was down 3.7% on Monday yet the VIX was down 8%?The only way the VIX can drop like that when the stock market is falling off a cliff is if the Fed is shorting VIX futures in large quantities.   This theory is confirmed by the fact that the VIX futures shot back up after the NYSE closed on Monday, which can only be explained by after-hours short-covering.   Let’s have a look at the trading log at the NY Fed to see what it was doing on Monday…

Yesterday’s spike up was accompanied by extremely low volume.  The most heavily shorted shorts on the NYSE were the ones that were up the most on a percentage basis.  Clearly this bounce is a hedge fund short-covering squeeze engineered by the Fed.

While the Fed can manufacture upside movement in the S&P 500 and Dow, it is helpless to prevent big sell-offs in certain sectors and stocks within those sectors.  Nike (NKE) is down 18% from its 2016 high after reporting a big miss in revenues and orders last night.  The entire retail sector as represented by XRT is down nearly 19% from its all-time high close last July.   This action reflects collapsing retail sales – a clear signal that the economy is in a recession, notwithstanding the highly  manipulated GDP data.

Several homebuilder stocks are well below their 1-yr highs from last August. Despite appearance of “healthy” housing market per the extremely manipulated housing data coming from the National Association of Realtors and the Government, the housing market is finally hitting a wall after being heavily stimulated by the Fed and the Government, with copious amounts of Taxpayer dollars.

When Freddie Mac and Fannie Mae roll-out zero downpayment mortgage programs for lower income “buyers” and when the NAR is spending millions lobbying for credit-relief for debt-riddled college grads, it is a clear sign that desperation has engulfed the housing industry.   If the Government has to intervene in the housing market to the extent that is has since 2009, the housing market is anything but “healthy.”

Gold is hitting 18-month highs today because the gold market “smells” Central Bank desperation.  It was clear from Draghi’s speech yesterday that the Central Banks are entering the final stage of the currency war:  money supply hyperinflation.   If you think the purchasing power of your after-tax disposable income is shrinking now, come report back in six months and tell me how it feels.

The Central Banks have painted themselves into a fatal corner.  If they don’t hyperinflate the money supply, the markets will collapse.  As the markets collapse, it will accelerate the ongoing global – including and especially the U.S. – economic collapse.   At some point the situation will become completely unmanageable.  At that point the stock markets will collapse and gold/silver will go parabolic.
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About Dave Kranzler:

Aspen1-dave I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.

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