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The
Global Financial Crisis, a broader deeper more powerful systemic crisis than
the Lehman Event was, has finally arrived in a great redux. It is seen in
numerous areas. We have finally arrived at the ten-year anniversary of the
Lehman event, a killjob whereby JPMorgan and Goldman Sachs bought a few
$billion in mortgage bonds and never paid Lehman Brothers. The firm died,
called a financial failure, but was actually a strangulation. Goldman went on
to capture AIG, in order to claim 100 cents per dollar on insured mortgage
bonds, a second crime. The Wall Street banks, under the leader Henry Paulsen
as the managing USTreasury Secretary, completed the third crime, by pitching
the $700 billion TARP Fund. They stole it, using the fund for enriching
themselves with redeemed preferred stock, instead of making the funds
available for lending purposes. Here ten years later, nothing has been fixed.
In fact, all the abuses heaped upon the mortgage finance sector have been
repeated in sovereign bonds. The USTreasury Bond has become a subprime bond,
financed by pure monetization, almost no actual bonds buyers, $trillion
annual deficits, auctions rigged, with hidden demand from the derivative
machinery. It qualifies as a Third World debt security. The corporate bonds
were routinely abused in stock buybacks, hardly ever ploughed back into the
business. High yield bonds are the norm now, along with the wrecked Emerging
Market bonds. There are many analysts who call the current situation the
Everything Bond Bubble.
The
Jackass prefers the name of Systemic Lehman Event, since it is part 2 with
the exact same monetary abuse, bond fraud in underwriting, with a QE chaser.
The Quantitative Easing is old fashioned hyper monetary inflation of the
worst kind, unsterilized, meaning huge volume of funds added to the financial
system with no extractions. The global financial crisis is upon us, having
entered an intermediate level of debt saturation, of bond issuance deep
abuse, of market rigging corruption, of banking system insolvency at acute
levels, and of economic rot setting in. The outcome of the unfolding
crisis will be three to five times more magnificent that what was witnessed
in 2008 and 2009. Expect the current crisis to wreck a few big Western SIFI
banks, collapse at least one national banking system, destroy at least five
major Western corporations, and result in open discussion of the USGovt debt
restructure, technically a default. The systemically important financial
institutions (SIFI) cannot not be saved, since too many are insolvent,
gigantic hollow reeds, dependent upon bond carry trade easy profits and narco
money laundering fees. They rely upon hidden central bank welfare, to cover
their $trillion exposure to derivatives. As the Petro-Dollar dissolves, these
derivatives become unmanageable.
The
signals are numerous for the unfolding erupting cascading financial crisis.
Witness the early tipoff in the FANG tech darling stocks. Then the Italian
banking system recurring disaster. Then the Deutsche Bank saga, better known
as the Bush Narco Bank. Then the entire US big bank takedowns, evident in the
BKX bank stock decline. Then the crude oil decline, down 30% in two months, a
sign of the vacated Petro-Dollar. Now finally, see the declines in the major
stock indexes, like the SPX (S&P500 index), the QQQ (Nasdaq index). The
pain meter will be the high yield bonds and the Emerging Market bonds. In
fact, the Western banks have kept the EM nations afloat by lending them funds
in the last two years, just to maintain and to float the loans owed to the
same Western banks. This is lending good money after bad. The Wall Street
banks are soon to decline sharply from the crude oil price, as the energy
sector deals out tremendous pain. The ballyhooed shale sector will collapse
in a massive thud.
GOLD
AS SAFE HAVEN
The
USTreasury Bond is the gigantic subprime global bond. It will face a major
global challenge by the Eastern superpowers, as they work steadily toward
implementing the Gold Standard. The weaponized USDollar and the nuclear
threats do not deter global players in the East. The rogue nation has become
the United States, both financially and in global behavior. The USGovt tax
revenue in total does not cover the USGovt borrowing costs any longer. The
entire USGovt function is currently in deficit, the entire shebang. The
insolvency of the situation is utterly obvious, except to Americans.
The
subprime bond is the USGovt debt security. It bears Third World fundamentals,
and will be treated as such. The lit fuse will be Western bank declines and
Emerging Market debt default. The winner will be Gold during the next
global financial crisis. Many are its signals, and the BKX bank stock index
is only one of several such signals. In 2008 and 2009, the safe haven during
the crisis was clearly the USTreasury Bond. Not this time, as Gold will take
the safe haven mantle, or share the mantle. The entire global bond market
will be shaken to its core. Gold will hit the scene with trade payment, then
with bank reserves management. The fact that Gold has such lousy sentiment is
the final confirmation, a contrary indicator. The Jackass has two key clients
who just threw in the towel, each involved in a gold trade line of business.
They might be the last sellers, since so dedicated and devoted in the past.
Thanks
to Gab for a fine historical chart of the Gold price. The multi-year
correction appears to be ending. Long-term trendlines offer support. The
intermediate downtrend over the last three years has been broken. The
bottoming process has been completed. The low from January 2016 has been
retested, without matching those low levels. The massive global crisis, with
all bonds in bubble formation, and many banking systems in insolvency, has
contributed to an environment where Gold reigns. GOLD HAS BEEN THE BEST
PERFORMING ASSET IN THE ENTIRE 2018 YEAR !! Gold feeds off crisis.
As
the global crisis, Lehman Part 2 emerges with more a blossoming multi-faceted
unfixable magnificent crisis, Gold will become headline news. The hidden
battles by the Globalist fascist elite banker cabal, against the Eastern
nations who hold vast gold troves, is coming to a conclusion. These battles
will make for excellent movies in the future, with downed aircraft, murdered
attorneys, legacy bonds captured, stolen gold located, mine rights sacked
(e.g. Grasberg), where the site of the concentrated conflicts tend to be
Malaysia and Indonesia.
The Gold
price will approach the $1300 level, toy with the $1350 level, and eventually
move to multi-year highs. The Gold price could possibly in the next couple
years, work toward the 2011 and 2012 highs. The time for Gold has come,
giving great impetus by the massive global historically unprecedented
financial crisis which has finally begun. It is the second phase of the same
problem from 2008, except it has gone global.
NUMEROUS
CRISIS SIGNALS
The
major stock indexes have raised alarm in recent weeks. The attention is
inescapable. Consider the signal given by the S&P500 stock index. This is
a death star, akin to severe heart palpitations in the EKG readings, leading
to a heart attack. Nothing can stop this decline, as the recession is being
recognized. Next come the parade of margin calls, huge quarterly losses,
negative outlooks, calls for powerful recession, corporate debt defaults,
official debt rating downgrades, rising unemployment, rising price inflation,
and growing scattered talk of a USGovt debt restructure (default).
Consider
the QQQ stock index, for the NASDAQ. This is another death star, which will
have a matching heart attack on the tech side, led by the majors and joined
by the darling FANG stocks. These nearly worthless stocks like FaceBook and
NetFlix,must come down to earth, upon recognition of their absent value and
pumped support by funny money. They provide a hilarious echo to the DotCom
worthless stocks such as Groupon. Nothing can stop this decline, as the
recession is being recognized. The gloomy stories will become a massive
procession of negativity and a lost generation.
Consider
the crude oil price, whose massive 30% decline in just two months should be
interpreted as a loud gong for the Petro-Dollar death. The East is not using
it like in past years, and maybe not even the Gulf Arabs. Qatar and the
United Arab Emirates just both discarded their devoted usage of the USDollar
in oil trade. The oil producing nations will seek a new protector in the
East, like Russia and China. They will seek a new standard for trade payment,
based upon the Gold Trade Note. It is overdue in the launch. The Wall Street
banks are extremely exposed to the declining oil price. They cannot hold off
the deep energy portfolio losses.
Revisit
the major bank stock index. It was featured several weeks ago, and its
continued death spiral is clear for all to see. Last week an important
reversal decline occurred. The October lows have been taken out, as new lower
lows are seen in a near catastrophic week last to finish off November. Look
for two years of gains to be wiped out quickly, as the 2016 levels will
return. The crude oil price declines, of historic magnitude in recent months,
will take down a couple big banks. The Wall Street banks desperately propped
up the crude oil price, with the collusion of the USFed itself. Next it
all unwinds, and massive losses to Wall Street banks threaten to expose tremendous
losses in the $billions for these hollow pillars posing as banks, whose main
activity is market rigging and bond carry trade. The Roaring 2010s (like
the Roaring 1920s) are coming to an end, fueled by the same medicine, excess
debt and its horrendous abuse.
Consider
the High Yield Debt, those funky bonds which cannot be held in mutual funds
or bond funds, due to downgrade and toxic ratings. Its two year rise in
fabricated legitimacy will come to an end, with all the gains erased quickly
and thoroughly. The Emerging Market debt matches this sector, except with a
much worse stench and a $9 trillion tab of defaulted debt.
Consider
Deutsche Bank, whose stock was once well over $100 per share. It serves as
the Western bank toilet lever. The DB share price is heading to 50 cents
in one of the greatest tragedies in the modern financial era. Hundreds of $billions
in market capitalization are being vaporized. Little known to the sheeple
and even to many financial mavens is that DBank is the Bush Narco Bank, which
has moved $billions in narco money for three decades, under the aegis of the
US-UK-EU regulators with watchful eyes, complete with profitable fees.
Consider
General Electric, once the bellwether industrial & financial stock. Its
products have one of the widest ranges in the entire Western world. Hundreds
of $billions in its market capitalization are being vaporized. GE is the
poster boy of abused bond issuance, putting the funds to work in executive
compensation furry lined pockets, executive stock options, and stock buybacks
(which reinforce the options). The GE debt downgrade two weeks ago shocked
the world, moving it to the lowest level above junk status. It will
eventually find itself junk. As GE goes, so goes the entire upper echelon
US-based bond market. Dozens of big US corporations will suffer additional
debt downgrades. Expect at least 1$trillion in bond losses.
Consider
the preppy tech darling stock FaceBook. It had absolutely no right being
placed in the S&P500 exclusive list. It lacked two primary
requirements:an established track record of a decade or more, and a tangible
product. But Zuckerberg is a Rockefeller grandson, probably a bastard
along the bloodline path. On a single day in July, its stock lost $165
billion in market capitalization, for one of the biggest losses in modern
history. It is actually a $5 stock, posing as a $140 stock, nothing more than
just a glorified rack of disk drives with a Langley gift of clever software.
FaceBook will lead the FANG stock down 80% to their proper level. A key
internet major stock might be declared a public utility and broken, certain
to produce a gurgle sound as it circles the drain rendered contaminated by
censorship.
MONEY
EXITS, GOES TO GOLD SAFE HAVEN
The
money is exiting a growing long list of various sectors. Never in recent
annals have so many sectors shown distress at the same time, ready for a
parade of severe losses and waterfall declines. Expect the Wall Street
managers to have very significant option puts in place for the S&P500 and
the NASDAQ tech stocks. They will sabotage the main US stock market, in order
to drive money into the USTreasury Bonds. But their initiative of sabotage
will not succeed this time. The reason why is very solid and very
understood. The funds will not find safe haven in the USTBonds since they are
the new subprime bond. The tax revenue does not even cover the debt borrowing
costs, a Third World indicator. The USGovt debt of $22 trillion will never be
repaid, a newly forming consensus opinion. The USDollar is no longer
considered the standard trade payment vehicle. The US-led sanctions have
backfired. Alternative workarounds to the USDollar channels in SWIFT
movements have been averted.
THE
EXITING FUNDS TO GO TO GOLD !! This round in the Global Financial Crisis part
2, the emerging Systemic Lehman Event, the busted Everything Bond Bubble, the
funds move to the safety of precious metals. The global battle to locate,
to source, and to provide secure vaults for Gold has begun. The long ugly
corrupted nasty Gold market correction since 2012 is ending. Finally!
Look for an assault on the $1350 level in the next several months, or next
several weeks. Look for a test (possible breach) of the $1900 levels from
2011 and 2012 to occur in the next year or two. The little known fact is that
the Swiss with their Euro / Dollar / Gold machinations, brought down the Gold
price from those previous highs. The publicity was given to the Swiss Franc
& Euro peg. But the reality was their Dollar Swaps, Euro controls, and
Gold suppression.
The game
is over, featuring QE as debt monetization and big bank welfare. The crisis
has begun, since nothing was fixed. All the abuse spread to render USTBonds
the new subprime bond. It will erupt in numerous areas. IT CANNOT BE STOPPED,
AND THE POWERFUL FORCES WILL BE DIRECTED TOWARD LIFTING THE GOLD PRICE. The
Systemic Lehman Event has begun. The French riots add a social dash of salt
to the table. The political and social ingredients are what the globalist banker
cabal cannot control, and will result in major eruptions across the globe.
Consider them to be backlash to the Color Revolutions. The beneficiary in the
financial markets already is seen to be gold, Gold, GOLD !!
HAT
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PROFITS IN THE CURRENT CRISIS.
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