Economics

03.27 Market Deathburger Watch: Dead Animals Make a Tasty Late Night Snack

by John Galt March 26, 2017 21:30 ET I think we might be taking a market road trip soon… Tonight has started out “interesting” needless to say. One of the headlines from CNBC gives everyone a clue as to how this evening may roll: The Nikkei 225 has voted down on the Trumpcare collapse with a 1.21% drop as of 9 p.m. ET: Meanwhile as Trumpzilla gets set to roam East Asian markets, Australia has recovered first because the investors woke up and realized they are already living in a Socialist…

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The TrumpCare Stock Market Crash of 2017

by John Galt March 26, 2017 19:10 ET Poor President Trump. The first rule of Washington Fight Club is that once you promote an idea, no matter how stupid it is, you own it. Thus it might Paul Ryan’s and Reince Priebus’ bill, but you are the proud owner to this failed nightmare because you kept promoting it and saying it would pass and be great for America. After being swept into office by surprise to many in the “mainstream” media, the financial world, and most members of the two inept…


The SEC Crashes Bitcoin $300 After Declining ETF Application

by John Galt March 10, 2017 17:00 ET The Securities and Exchange Commission voted today and for the invisible currency you can not hold in your hand, well, not so good (from Forbes): SEC Rejects Winklevoss Bitcoin ETF, Sending Price Tumbling Excerpted: In its statement, the SEC stated, “the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent…


WTI Crude Oil Crashes Below $50 per Barrel

by John Galt March 9, 2017 05:30 ET With little warning West Texas Intermediate crude oil contracts took a dive just after 5 a.m. Eastern Time with a fast $1.00 drop bringing the price below the $50 per bbl. level. Brent has also dropped below the $53 level which means this sell off could accelerate throughout the day. As of this posting, the only Middle East equity market with a major downturn is the Abu Dhabi (ADX) Stock Exchange is reflecting any negative impact from this sudden drop but it has…


Bitcoin v. Gold: And the Winner is…

by John Galt March 8, 2018 21:20 ET Last week, something bizarre happened in reality which really should set the tone for all markets this year. From CNBC: That’s right, Bitcoin was priced around $1290 each while gold was floundering in its next leg down at $1228 per ounce. Is it the end of the world? Maybe. Or perhaps, like the financial markets as a whole since the 1990’s insanity began it is a reflection of digital fantasy usurping actual reality. After all, how many bitcoins do you have in your…


The First Trump FDIC Friday Bank Failure is Proficio Bank of Utah

by John Galt March 3, 2017 20:45 ET Tonight marks the official beginning of the President Trump era of the FDIC seizing failed banks as the bank seized on January 27th was actually initiated under Obama’s leftovers running the U.S. Treasury, not Steve Mnuchin or anyone from Trump’s team. What is interesting about this failure is that is sounds eerily like those small banks which started failing in 2006 and 2007 which preceded the avalanche of failed institutions in the mortgage and bank implosion. From the former parent company’s website, NHB…


President Trump Should Kill Obamacare on February 28, 2017

by John Galt February 26, 2017 22:00 ET “Their throats are open graves; their tongues practice deceit.” “The poison of vipers is on their lips.” – Romans 3:13 Welcome to Rome Mr. President. Although the biblical reference has nothing to do with Rome or Washington, D.C., it seems appropriate considering the betrayals, fake news, and absurd political games being played there now. After President Donald Trump waltzed into Washington he thought that the bureaucracy and Republican leadership would bow down and obey the voters. Just over one month later, reality has…


Gold and Silver Divergence Indicates an Unstable Market

by John Galt February 21, 2017 05:20 ET Last week’s moves in gold and silver provided a divergent point in the precious metals markets as silver broke through a short term resistance point of $18 per oz., while gold struggled to continue it’s upward blitz. First gold, which put on a show to start the week but then stalled at the $1240 level: Unless gold can complete the move through the technically important $1280 level with improved volume to break the downtrend in participation for the metal, the price will probably…


Silver and Gold may Have Further To Run Before a Big Drop

by John Galt February 6, 2017 05:00 ET The U.S. Dollar has finally entered into a period of seasonal weakness and as a result, the usual first quarter rallies in gold and silver is well under way. The rumors about a super strong dollar policy are premature since it would appear the Democrat Party strategy is not only to only to obstruct, but to rally the legal system to oppose anything remotely resembling Constitutional rule of law. Thus the disorientation felt by world markets is actually leading to an opportunity for…


UK Parliament Votes to Trigger Article 50 so Brexit is Official

by John Galt February 1, 2017 18:20 ET Tonight the United Kingdom finished the final step as required by Great Britain’s Supreme Court when the Parliament passed the bill to trigger Article 50 by over 384 votes (from the UK Telegraph): Boris Johnson says ‘history has been made’ after MPs pass Bill to trigger Article 50 by 498 votes to 114 From the article: Boris Johnson said that “history has been made” after MPs voted overwhelmingly on Wednesday night in favour of triggering Brexit negotiations and beginning the process of leaving…


Trump is Obviously Racist: 1st FDIC Action under Trump is to Seize Black Owned Chicago Bank

by John Galt January 27, 2017 18:45 ET For the terminally stupid, the headline is obviously sarcasm. But the reality is the Obama bank failure rush will begin now. Tonight, President Donald J. Trump’s FDIC took the first step to stabilizing the corrupt Obama banking system by what? Seizing a black owned bank with rumored political ties to Mayor Rahm Emmanuel and support for Democrat causes in the region. Political payback or just logical? I’ll go for the latter as the Treasury Secretary nominee, Steve Mnuchin, has not even been confirmed…


The ATM of Today is the Phone Booth of Tomorrow

by John Galt January 26, 2017 22:05 ET Remember when everyone said that Bitcoin was going to be the defying act of independence as a digital currency which replaces every global currency? Did anyone really think that the world’s central banks were not going to go down without a fight? Uh, no. Last night that was exposed on these pages when the People’s Bank of China shocked the world: BREAKING NEWS: People’s Bank of China First Central Bank to Issue Digital Currency The PBOC is the science lab for an experiment…


BREAKING NEWS: People’s Bank of China First Central Bank to Issue Digital Currency

by John Galt January 25, 2017 20:25 ET Tonight the People’s Bank of China (PBOC) became the first large national central bank to announce that they would issue a digital currency. Via Caixan tonight: PBOC Set to Be First to Issue Digital Currency The People’s Bank of China (PBOC) completed a successful trial run of a digital bank acceptance exchange, moving closer to becoming the first central bank in the world to issue its own digital currency. According to sources from the PBOC, the central bank on Dec. 15 completed the…


Obamacare’s Death March Begins: Trump May Halt Enforcement of IRS Individual Mandate

by John Galt January 22, 2017 15:30 ET Although I watched ABC’s Sunday news program and thankfully my eyes successfully stopped bleeding, the news from it I tweeted earlier is now being widely reported by the #FakeStreamMedia (from Reuters/Yahoo): Trump may not enforce individual health insurance mandate: aide (excerpt) The Trump administration may no longer enforce a rule requiring individual Americans to carry health insurance or pay a penalty if they do not, a senior White House official said on Sunday Speaking on ABC’s “This Week” program, Kellyanne Conway, counselor to…


The Nightmare Which Keeps Janet Yellen Up at Night has Come True

by John Galt January 22, 2017 14:40 ET The American people have been living a hopium induced dream laced with Hollywood special effects and tons of voodoo economics magic tricks initiated under the direction of former President Obama. To understand why there is a nightmare which keeps the academics and Janet Yellen awake at night, one must review the events under the Obama regime which are going to lead to a seminal moment for the American economy and indeed, the very structure of the Federal Reserve Bank’s actions over the last…


Trump Signs Executive Order Starting the End of Obamacare

by John Galt January 20, 2017 21:50 ET The fireman has arrived at 1600 Pennsylvania Avenue. President Donald Trump took a major step tonight to warning the Republicowards in Congress and humiliating former President Obama on the issue of Obamacare (from the Washington Post): Trump signs executive order that could effectively gut Affordable Care Act’s individual mandate Ouch. This is the first of many ultimate slaps into the trash bin of history of Obama’s accomplishments, but this one is YUGE. Excerpt from the article: President Trump signed an executive order late…


Revenge of the Bamster: 2017 Bank Failure #1 – Harvest Community Bank of NJ

by John Galt January 13, 2017 19:10 ET Obama wouldn’t start seizing banks in an attempt to destabilize the financial system and leave incoming President-Elect Trump with a poop sandwich to eat now, would he? Stay tuned as the last bank seizure by the FDIC before this one was way back in September of 2016, yet the zombies are still allowed to walk conveniently until one week before Trump takes office. From the FDIC website: First-Citizens Bank & Trust Company, Raleigh, North Carolina Assumes All of the Deposits of Harvest Community…


Capitalism is Alive and Well in Tampa for Tonight’s National Championship Game

by John Galt January 9, 2017 17:25 ET I love capitalism. It brings out the worst and the best in people. The worst? People overcharging for a product that the market will not pay for. The best? People using the market to get the product at a much more reasonable price. For example, tonight’s NCAA College Football National Championship Game between Alabama and Clemson is fetching some absurd prices for last minute ticket buyers. With only hours to go before kickoff, I decided to see what the highest asking prices were…


Trump Keeps Winning: Fiat Chrysler Announces $1 Billion Investment in OH and MI, Creates 2000 Jobs

by John Galt January 8, 2017 18:05 ET I’m not a hardcore Trumper, but I have to admit, this is fun to watch. With Fiat Chrysler America (FCA) announcing the relocation of Dodge Ram Truck production from Mexico to Michigan and Ohio, plus creating 2,000 new jobs in the process the UAW leadership and the Democrats have to be squirming. From the BBC report: Fiat Chrysler commits $1bn to US plants Under the plan it will also move the production of a Ram pickup truck from Mexico to the US. The…


The Chinese Banking Problem is Sending Major Warning Signs

by John Galt January 8, 2017 17:10 ET Bloomberg sent the first warning signal on December 27, 2016 with this article: No Happy New Year in China as Currency, Liquidity Fears Loom And this excerpt was a major hint as to why: “You have Chinese New Year quite early, and because of that one-month window, most of the banks will try to lock the money in a three-month cycle,” said Arthur Lau, Hong Kong-based head of Asia ex-Japan fixed income at PineBridge Investments. “The current situation in the bond market is…


John Galt’s Intoxicated Insane Predictions for 2017: Happy Days are Here Again!

by John Galt January 2, 2017 22:15 ET That’s right America! It’s time to pick ourselves up from our overpriced Nike cross trainers and Make America Great Again because by God Happy Days are here again! Meanwhile, in 2016, first let me highlight what I got right from last year’s thread, and that isn’t much (damned dartboard): – WTI Crude will briefly trade below $20 per barrel and finish the year in a range between $35 to $52 per bbl. – Russia will make use of the U.S. Dollar in all…


Coming Soon in 2017: The MAGAbond aka Federal Municipal Bond Program

by John Galt January 2, 2017 20:50 ET The problem with most American economists and politicians is that their public persona and ideological rigidity prevents them from thinking outside the box. Hell, I was guilty of that during the election using my experiences in life and historical observations attempting to view the Donald Trump phenomena via the Libertarian microscope only to be shocked that the American public saw something different: A savior of our nation and system. Thus when President-Elect Trump starts meeting with minority leaders on the issue of economic…


2017: The Year of Peak Bear

by John Galt January 2, 2017 19:30 ET A quick sampling from the web before I begin: Something Wicked This Way Comes Why Social Security Is Doomed: “Birthrate At Lowest Level on Record”… And the Future Is Unfunded Forecast 2017: The Wheels Finally Come Off 80% Stock Market Crash To Strike in 2017, Economist Warns Are We Being Set Up For A Crash? Stocks Hit A Level Only Seen During The Bubbles Of 1929, 2000 And 2007 Could Stock Market Crash In 2017? 3 Factors Suggest It’s Possible How to Prepare…


100 Things I Would Like President Trump to Do in the First 100 Days

by John Galt December 20, 2016 21:20 ET In no particular order, but some I’d love to see first more than others, like the first two: Order the withdrawal of all U.S. forces from Syria. Order the withdrawal of all U.S. forces from Iraq. Order all operations in Africa to be completed and forces withdrawn within 90 days. Cancel the agreement with the GCC (Gulf Cooperation Council) nations which allows them to screen and approve visa applications. Order 10,000 U.S. soldiers to the U.S.-Mexican border to protect the U.S. Army Corps…


Euro Cracks as Italy Tells Brussels to Go Pound Lira!

by John Galt December 4, 2016 19:20 ET Italy has just caused massive market turmoil with one vote as the Italian referendum results as of 6:20 p.m. ET are shocking and way outside of what was predicted by both futures markets and so-called experts once again: The latest update from Reuters: Prime Minister Matteo Renzi has lost a referendum on constitutional reform by a wide margin, exit polls showed on Sunday, throwing his future into doubt and opening the door to renewed political instability in Italy. Renzi, who had promised to…


Turkey Wades into the Global Currency War

by John Galt December 4, 2016 12:15 ET With the recent massive devaluation of the Turkish Lira due to the political instability inside of Erdogan’s Islamic dictatorship, the flow of Western money out of the country has created a vacuum and a scapegoat for the upcoming surge in inflation as the Lira declines in value. The European Union and Turkey have been trading political barbs for months now and with Turkey looking less likely to win admittance into the Union, it would appear that not only is Erdogan preparing for life…


Gold Died Today so Get Ready for Retest of 2016 Low Prices

by John Galt November 30, 2016 22:20 ET As I warned back on November 11th, if the gold bulls wanted to save the market they had best get to work or a repeat of 1982-83 might well be underway. Today, gold died: All short and intermediate term technical support was violated with a crash below $1178-$1180. Tonight it has broken below $1170 and very little support seems imminent until the $1100 price area is reached. The economy is about to face a very short term bout of deflation which will scare…


2017 Under Trump: Sunshine, Lollipops, and Dow 25,000

by John Galt November 14, 2016 05:00 ET Weird as this past week may have seen, things are going to leap into super-bizarro world in 2017. The liberals are engaged in their once in a generation consumption of their own, college students are freaking out because they may actually have to graduate and get jobs, and believe it or not the mainstream media is starting to discover that they are as relevant as Joe Biden. And the good times have not even started if  President Trump stays true to his word….


Is Gold About to Drop 40% Like the Reagan Era?

by John Galt November 11, 2016 18:00 ET The answer is not going to endear me to my fellow goldbugs and precious metals dealers, but 2017 appears to be a good year to acquire gold at bargain prices. First a look at the chart of gold on the continuous contract for the past 3 years: The initial downtrend breaking gold below the key technical resistance level of $1280 per ounce was violated and then bottomed below $1100 in 2015. Then with the election uncertainty beginning in 2016 and the prospect of…


Trump’s Team Wants the Ultimate Outsider to Become Treasury Secretary

by John Galt November 11, 2016 04:550ET In what can only be called a bold move by Donald Trump and his transition team, reports surfaced on Thursday that they wanted the ultimate outsider to drain the swamp in the U.S. Treasury Department. Donald Trump advisors consider Jamie Dimon for treasury secretary More from CNBC yesterday: Excerpt from article: In the wake of Donald Trump’s upset victory, advisors have floated the idea of naming Jamie Dimon as treasury secretary, according to two people familiar with the matter, but one of them added…


The Winners, Losers, and Dreadful from Election 2016

by John Galt November 9, 2016 20:45 ET Thankfully the election of 2016 is OVER. There is a lot of winners, a lot of losers, and just some God awful dreadful things that I have observed in the past week so instead of just the usual Winners and Losers, I’ll toss in the DREADFUL as a reminder that some people and organizations can go above and beyond the “loser” status. I’m sure that I’ve left some off the list that everyone will want to check, but I’m trying it from a…



The FBI Proved Tonight it is all Rigged – Stocks Soar, Hillary Flaunts, America Dies

by John Galt November 6, 2016 18:50 ET I’m sure FBI Director Comey did not wake up to his favorite horse in his bed this morning, but I feel his pain for the loss of whatever pet he did find beheaded this morning under his sheets. Because if anyone thinks that the system is not rigged, think again: The RNC folds and after Donald Trump gets a few early wins, the entire Party coalesces on stopping legitimate threats to the Washington Establishment like Ted Cruz and Marco Rubio. The “movement” behind…


The End of the Independent Trucker

by John Galt November 2, 2016 19:45 ET Today, Warren Buffett, the railroad industry, and the anti-trucking alliance won a huge victory which soon will mark the end of the independent trucker, aka, owner-operator in America. From the Wall Street Journal logistics pages tonight: Appeals Court Upholds Trucker E-Log Rule While the headline itself seems innocent enough, after all, safety on the roads is important, right? Afraid not gang as the secondary headline tells the tale of woe about to end the independent trucking industry: Drivers association says requirement makes members…


Welcome to the B.R.U.S.A.

by John Galt October 12, 2016 20:00 ET Welcome to the Banana Republic of the United States of America (B.R.U.S.A.) In just the past week we’ve had stories like this one: And this one (warning uncensored language): And this one: John Podesta Asked Hillary Clinton to Court ‘Needy Latinos’ in WikiLeaks Email And this one: At Wells Fargo, Complaints About Fraudulent Accounts Since 2005 Of course the media is now part of the Clinton campaign so that officially puts us in Third World territory (via WikiLeaks): Of course when a Banana…


On the Trump Tax Issue, Warren Buffett is Full of Crap

by John Galt October 10, 2016 20:55 ET Today the financial propaganda infomercial media, aka, CNBC, published the following story: Warren Buffett fires back at Donald Trump’s comments about his taxes In the story linked above the Orifice of Omaha stated the following: “I have paid federal income tax every year since 1944, when I was 13. (Though, being a slow starter, I owed only $7 in tax that year.) I have copies of all 72 of my returns and none uses a carryforward,” Buffett said in a statement. So let’s…


10.09 Saudi Stock Market Plunges another 2.2%

by John Galt October 9, 2016 08:45 ET So much for the idea that this rally will carry the world into a new camel, er, bull market. (chart via Bloomberg) This is not a predictor for the future, but if it is a hint as to how disturbed the force is with the potential for World War III starting any moment, world markets could drop far and fast without much warning.


UK POUND EXPERIENCES FLASH CRASH: Drops 6% in 2 minutes!

by John Galt October 6, 2016 19:30 ET I don’t know what happened but will effort to find out but suddenly, just after trading started in New Zealand, the FOREX markets imploded with the British Pound Sterling collapsing 6% from 126 to 119 in less than 2 minutes: More as news comes in..stay tuned as it has recovered to 123 but there is something major happening. UPDATE – From the UK Telegraph, worth a read: Pound skids to fresh 31-year low and FTSE 100 closes below 7,000 on fears of hard…


Saudi Stock Market Takes a Camel Dump as it Drops 3%

by John Galt October 2, 2016 09:30 ET Guess the Obama lame duck magic is wearing off (Chart courtesy of Bloomberg): Oil is indicated to open substantially lower later today if the Middle East trading session is any indication, even though it was not throughout the entire region, the overnight and Monday trading session for equities globally could be interesting. Needless to say, the horrid economic conditions and further actions by the Saudi government which indicate that they may indeed be in greater financial trouble than publicized, along with the ongoing…


5th Bank Failure of the Year: Allied Bank of Mulberry, AR Seized by FDIC

by John Galt September 24, 2016 22:30 ET As I was out and about last night and did not have time to post up the usual “Bank Failure Friday” posting, here is the delayed news from the FDIC last night: Today’s Bank, Huntsville, Arkansas, Assumes All of the Deposits of Allied Bank Mulberry, Arkansas FOR IMMEDIATE RELEASE September 23, 2016 Allied Bank, Mulberry, Arkansas, was closed today by the Arkansas State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into…


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