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It’s not fair! Whether I write five, three, or two pages of text,
there isn’t enough space to cover the runaway train snowballing avalanche out
of control pandemic that is the “terminal phase” of history’s largest, most
destructive fiat Ponzi scheme. On any given day, there are anywhere
from a half dozen to multiple dozen topics worthy of entire
articles. Each of which, depicting how close to the “brink” we have
come; and how urgent the need to PROTECT YOURSELF, whilst you still can.
To that end, on this Saturday morning, following the post-FOMC bloodbath
that in my view, put the world closer to said “brink” than any time in the
post-2008 “economic zombie era,” I’m simply going to “sample”the news past 48
hours’ news. This way, you can not only “share my pain,” but put the
state of the world into perspective – politically, economically, and
socially. Sadly, these articles are just a, let’s say, “three” on the
Defcon scale – compared to the “ones” I anticipate next year, after the
“peace and joy” of the holiday season pass.
And when this rapid-fire listing of a mere sample of the world’s ills is
done, I’ll highlight the “horrible headline that stands out above the rest”
for you to ponder. Thus, let’s start with the horrible economic
headlines of the past two days, which in some cases I paraphrased to drive
their poignancy home. Also, italicized words are my comments.
- WTI Crude falls to $34.50/bbl – Storage bulging, heading
to $20/bbl
- OPEC members in jeopardy – How long can they hold out? (many
members’ “fiscal break-evens” are around $100/bbl)
- Something strange taking place in the Middle Atlantic
Ocean – Oil-filled tankers crossing the ocean, turning around and
heading back home
- The Other Energy Bust – Natural Gas prices fall to
all-time inflation adjusted low (storage levels 35% above historical
averages!)
- Just wait for the bankruptcies – The natural gas market
is in real trouble
- 2016 commodity collapse winner – Molybdenum, down 49%
- Deflation Alert – Chinese tanker speeds (which
closely track GDP growth rates) down 25% since 2008
- Global Deflation Alert – Even Goldman takes the axe to
its iron ore forecast
- Global Deflation Update: Japan November Exports fell
3+%, 8+% to China, Asia
- Restoration Hardware CEO mocks Yellen’s view of
“recovery”
- Caterpillar Depression turns three – 36 months of
declining year-over-year sales (compared to 19 during the 2008-09
recession!)
- Money velocity crashing – here’s why
- Unemployment hits seven-year high, as Brazilian
courts mull impeachment bid
- Philly Fed collapses to lowest since Feb 2013, as
‘hope’ crashes
- Kansas City Fed survey collapses, new orders crash
most since 2008
- U.S. current-account deficit hits highest level
since 2008 (higher rates will make it rise further)
- “Services will Save Us” meme collapses, as
Non-Manufacturing PMI plunges to 2015 lows
- Microsoft chops Xbox prices in half for the
holidays (17-day sale!)
- Puerto Rico should default to shock U.S. markets (I
thought they already did)
Next, the political…
- Putin threatens to shoot down Turkish jets, calls
Erdogan an a-s kisser
- ISIS Axis assembles – Turkey to establish a military
base in Qatar
- Islamic blitzkrieg coming to Germany, arrested jihadist
warns
- Congress fumes, says Iran violated U.N. ban on
test-firing nuclear-capable ballistic missiles
- Congress just passed a second Patriot Act, and nobody
noticed
- Japan prepares missile blockade to halt Chinese maritime
aggression
- Ukraine (backed by the U.S.-led IMF) defaults on
$3 billion bond to Russia
- Spain’s generational divide will be on full display in
this weekend’s elections
And “last but not least,” the financial…
- High yield bond market blowing out again
- Markets brace for more fund liquidations, as record
outflows slam debt funds
- This junk bond derivative index is saying something
scary about defaults
- Moody’s downgrades Glencore to lowest Investment Grade
rating, as its Credit Default Swaps trade at multi-year highs
- Transportation stocks trounced to 20-month lows, as bear
market builds
- The average stock (down 20%) is now in a bear
market
- Slump in the smallest stocks, versus the biggest, is
getting worse
- Dow slumps 700 points from the post-Yellen highs, amid
policy error fears
- That’s not supposed to happen – Post-FOMC, yield curve
flattest in nine months
- First post-hike reverse repo removes $105 billion
of liquidity from 49 banks
- Citigroup resizes infrastructure after Fed rate
hike, slashes 2,000 jobs
- South African Rand hits all-time low – More pain
coming?
- Canadian dollar crashes to 12-year low, after
collapse in consumer prices
- Indonesian central bank ready for additional
easing
- China weakens Yuan for 9th consecutive day,
longest streak since 2008
- Argentine Peso collapses 29%, after government
devaluation
- Japanese jawboning (of a 10% increase to their
$25 billion/year equity monetization scheme) fails, as Nikkei
crashes 1,000 points from overnight highs
- Congress’ half-trillion-dollar spending binge – Budget
austerity takes a back seat as the House passes nearly $700 billion in
unpaid-for tax cuts.
All that – and yet, the article that “stands out above the rest” comes
from Steve St. Angelo of the SRS Rocco report; titled “Breaking News – U.S.
Silver Production Plunges.” In it, he notes that U.S. silver
production, already down 50% from its 1998 high, declined by a
whopping 20% in September 2015 versus September 2014. This, amidst an
accelerating trend of plunging worldwide production – from both
primary and byproduct sources.
Unquestionably, peak silver was reached last year; as with more than three
quarters of the year’s data available, it’s looking like a 5%-10% decline in
2015 production is likely. And this, before primary silver
miners start taking the ax to production estimates due to year-end financial
reviews; and before copper/lead/zinc miners – which cumulatively, are
responsible for 55% of global silver production – start shutting down mines
en masse. In other words, making the potential 25%-50% production
decline postulated in last year’s “Miles
Franklin All-Star Silver Panel Webinar” – featuring Steve St. Angelo,
David Morgan, Bill Holter, Harvey Organ, and myself – looking significantly
more likely. And this, as the entire world starts to realize that only
silver – and gold – have monetary history behind them, as the world’s Central
banks hyper-inflate Precious Metals’ “competitors” to oblivion.
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