DEFLATION

Japan Poops the Bed

by John Galt July 29, 2016 00:20ET The drunk squirrel used to headline this story has nothing to do with Japanese Monetary Policy. Nor does the pink haired Japanese chick. Or do they? From the Bank of Japan minutes ago (via Reuters): BOJ eases policy with modest increase in ETF buying The Bank of Japan expanded monetary stimulus on Friday through a modest increase in purchases of exchange-traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2…


Meet the Swaption Another $25 Trillion Time Bomb

by John Galt July 11, 2016 00:15 ET Wow. Another all time high in the S&P 500, just like 2007: In June of 2007, the S&P 500 hit an all time high price even as Bear Stearns was bailing out two major hedge funds which imploded due to the real estate crisis and complex derivative investment instruments (via the Wall Street Journal in 2007): Two Big Funds At Bear Stearns Face Shutdown Two big hedge funds at Bear Stearns Cos. were close to being shut down last night as a rescue…


The Bail-In Bankster Model of Cyprus Results: Cyprus Stock Market down 99.2%

by John Galt July 8, 2016 23:00 ET On January 1, 2016 the new bail-in rules became the rule of law for the member states of the European Union. Hugo Dixon penned a column for Reuters on January 4th which revealed how tough the terms were for the bail-in protocol (excerpted): The European Union entered a brave new world of bank “bail-ins” at the start of 2016. Europe has wasted so much taxpayers’ money on bailing out bust banks in recent years that it is right to try to get investors…


Today Brexit, Sunday Spainaggedon

by John Galt June 24, 2016 21:30 ET The political and financial elites never learn their lesson. Just twenty-four hours ago Nigel Farage of UKIP was proclaiming a narrow defeat for the “leave” faction in the Brexit election only to be surprised himself some four hours later by the overwhelming returns showing the British citizenry rejecting the bureaucratic lies and nightmare known as the European Union. Fast forward to this morning where Spain’s center-right Prime Minister Rajoy decided to act like Prime Minister David Cameron with his threats of the consequences…


As a Follow up to My last Article on China: China FDI Drops 1% vs. Expected +5%

by John Galt June 12, 2016 19:20 ET As a follow up to my last article, the news out of China this morning was not good. In fact it validates the concerns foreign investors have about the viability of keeping money parked inside the communist behemoth where risk is defined not by markets but government whims. Foreign Direct Investment in China dropped 1% instead of rising the predicted 5% that economists expected. These highlights from the release along with the chart from ForexLive tells the tale of woe: +6.0% prev Yuan…


06.08 21:10 ET BREAKING: Bank of Korea Cuts Key Interest Rate to 1.25% in Surprise Move

by John Galt June 8, 2016 21:10 ET In the ever perpetual currency war and race to zero, the Bank of Korea surprised markets tonight with a cut in their key overnight rate to 1.25% from 1.50% after experts and analysts saw no cut forthcoming. This is the first move for the Korean Central Bank since June 2015 and needless to say the Korean Won moved quickly against the USD by 0.7% but shortly after pared the move to half of its intended consequences:


The Boricuan (Puerto Rico) Crisis Accelerates into Default with American Banksters

by John Galt May 2, 2016 21:40 ET John Oliver on HBO’s “Last Week Tonight” provides a nice summary  of what is happening on one of America’s remaining colonies: How bad is it? Here is this morning’s El Nuevo Dia newspaper front page from San Juan which should have rung alarm bells in Congress: The key headlines (roughly translated for those not fluent in Spanish): “We can NOT wait any longer” for relief from the Congress of the United States “Emigration has reached another record” (from the island) “Congress has to…


Another Economic Canary Just Croaked in Asia

by John Galt April 25, 2016 19:00 ET And everyone should be worried….. The new mantra on Wall Street and Main Street is that Europe, Asia, and the Middle East do not matter. What happens there is relatively irrelevant and just keep buying crap be it at the retail level for a new gadget or electronic game app, or in the stock market a biotech with losses of over $100 million and a product which is still five years from viability. Yet reality is happening everyday overseas and Americans had best…


Russia’s Plan to Blackmail OPEC at the Secret Qatar Meeting on Tuesday

by John Galt February 15, 2016 20:05 ET The long anticipated Wild West face to face showdown with Russia and Saudi Arabia occurs on Tuesday, February 16th in Doha Qater per Bloomberg today: Saudi, Russian Oil Ministers Plan Talks in Doha Tuesday The reaction in the crude oil futures markets was fast and obvious (chart via Investing.com): The so-called secret meeting was leaked by someone with a financial interest in moving the futures markets. Here is an excerpt from the Bloomberg article linked above: Ali al-Naimi, the most senior oil official…


02.11 U.S. MARKETWATCH: It’s going to be a Bloodbath if S&P 1780 Does not Hold

by John Galt February 11, 2016 05:30 ET With each new day, a new crisis in deflationary acceleration occurs and thus markets retreat closer and closer to danger levels which could trigger massive crashes. Today’s headlines are no different: Swedish national bank, the Riksbank cuts rates FURTHER into negative interest rate territory from -0.35% to -0.50% The Japanese Yen has risen further against the USD now down over 400 pips to 111 since last night Gold is up over $20 as everyone appears to be abandoning fiat currencies and returning to…


01.17 Middle East Markets Plunge as Iran Plans Massive Oil Exports

by John Galt January 17, 2016 09:40 ET OUCH! While U.S. markets may be closed for a government union sponsored day off on Monday, the rest of the world’s equity markets are imploding once again. The lifting of economic sanctions by the United States and United Nations was promptly followed by the Iranian government promising to ramp up oil exports as soon as today or Monday. The resulting addition of more oil to the markets and an illiquid Asian equity situation should set up a nice crash in Brent prices overnight…



Think the Fed has a Clue? Let’s Review 2008 and Think Again

by John Galt September 27, 2015 02:30 ET In the past week, Federal Reserve Chairwoman Janet Yellen endured a health scare which sent shudders throughout the financial world. Thankfully she later reported it was just dehydration and everything was fine, however her immediate health related issue should not be what terrifies investors; it should be the fact that the Federal Reserve has no clue as what is happening or what to do with the current economic situation. Let us review recent history, say way back in 2008 for a historical guide….


The Federal Reserve Raises the Stakes in the Global Currency War

by John Galt September 17, 2015 20:30 ET Today’s Federal Reserve non-action was nothing more than another throwing down of the gauntlet to Japan and the European Central Bank: We will stay in this world currency conflict and outlast all of you to remain the last viable bankster standing. Why is this relevant? ZeroHedge touched on this tonight in an article he published titled “This Is What Yellen Said About Negative Rates Coming To The US” where someone within the Fed actually indicated a possible NIRP (Negative Interest Rate Policy) in…



The Federal Reserve’s Hidden Warning in the FOMC Statement

by John Galt July 30, 2015 04:30 ET Yesterday the Federal Reserve’s FOMC released the following statement triggering another cyber rally along with more promises of nirvana on Wall Street: Release Date: July 29, 2015 For immediate release Information received since the Federal Open Market Committee met in June indicates that economic activity has been expanding moderately in recent months. Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labor market continued to improve, with…


The Ultimate Guide to the Doom and Destruction for the Rest of 2015 Part 1: Economic Collapse

by John Galt July 26, 2015 18:00 ET 2015 could well be known as the year where we who were lucky, or unlucky, enough to survive may  have the opportunity to mark the beginning of the end of mankind’s civilized era of the past three hundred years as we know it. Pax Americana of the past 70 years also could become easily, the Iron Curtain of America as our society implodes as a result of events overseas, domestically, and worse, natural disasters warned about in the past, yet never properly prepared…


70 Million Americans Could Lose their Jobs in the Next 10 years

by John Galt March 15, 2015 22:00 ET The smartest individuals in American capitalism are hiding a secret in plain sight, yet nobody of consequence wishes to address them about the future they are planning. One of the most amazing, and insightful beginnings to a book was written by Martin Ford in The Lights in the Tunnel: What if technology progresses to the point where a substantial fraction of the jobs now performed by people are instead performed autonomously by machines or computers? Is that likely, or even possible? And if…


03.15 20:00 ET – Oil is Crashing and Burning like an Obama Rail Tanker Car

by John Galt March 15, 2015 20:00 ET Chart presented courtesy of FinViz.com as the real driving force in this decline is still being ignored by the financial propaganda, er, mainstream media: This would be a good time to build the Keystone pipeline because all of those railroad tank cars sitting on the Taggart Comet’s line may go boom like those who went long WTI at $50 thinking it was the bottom.


Swiss National Bank Cuts Overnight Lending rate to – 0.75% Ends Cap on Swiss Franc

by John Galt January 15, 2015 05:00 ET The news this morning in every market has been upending by a deflationary panic move instigated by the Swiss National Bank when the central bank of that tiny nation eliminated their protective floor of 1.20 on the EUR/CHF (Swiss Franc) and US Dollar while at the same time cutting overnight lending rates to an unheard of negative 0.75%. The reaction was swift in the Euro/Dollar trade as it crashed into 1.15 rate but has since bounced back into the 1.16 range: Meanwhile, the…


11.30 Deflationary Deathburger Freak Out Hitting US Futures Markets Tonight (Gold down over $50!)

by John Galt November 30, 2014 18:30 ET It is nice of the Fed and Bank of Japan to drag the old Kevin Bacon film clip out for tonight’s market action. Meanwhile back in realville, uh, all TS is HTF if you are long gold, silver, or anything you eat, put in your gas tank or that you can drop on your foot which hurts. (data courtesy of FinViz.com) This could be a most interesting week, especially if the early previews and rumors about retail sales and the unemployment number decide…


11.30 While America Ate and Shopped Mini-Crashes Rocked the Markets

by John Galt November 30, 2014 10:35 ET While Americans ate, partied, and shopped until their credit cards cried “uncle,” markets around the world experienced a mini-crash which despite the protestations of the CNBCBBGFBN propaganda and infomercial sales forces will have consequences for the American economy and indeed the future of our consumer and debt driven economy. One chart sums up the coming crisis but it is not one that will be publicized by the mainstream infomercial financial media nor many if any mainstream economists: Why is this chart of the…


Japan Enters a Triple Dip Recession as Deflation Fears grip the World

by John Galt November 16, 2014 21:45 ET Radio Australia broke the news earlier tonight, along with every Japanese and economic news source in the Pacific Rim portion of the world: Japan re-enters recession with shock contraction Posted 17 November 2014, 12:05 AEDT By business reporter Michael Janda Japan has surprised analysts by re-entering recession on the back of sales tax increases. A large, and recently expanded, money printing program has not stopped Japan slipping back into recession. (Credit: AFP) The Japanese economy went backwards by 0.4 per cent in the…


10.03.14 TEOTWAWKI RADIO SHOW: Everything You Don’t Want to Know About Ebola (But your Government won’t tell you)

by John Galt October 3, 2014 17:25 ET This prediction is 100% solid and can not be refuted nor avoided by anyone who listens to my radio show: We are all going to die. Welcome to ground zero, patient zero, the zero hour. So if America takes a hit from this, who really wins? Let’s try to analyze this tonight before our heads explode (for real) and the news makes our eyes bleed out (for real). To listen click on the link below at 9 pm ET which for those of…


The New Cold Gold War

by John Galt May 28, 2014 21:20 ET During the first week of April, the European Union and United States re-declared the cold war against Russia and China. The incidents in Crimea and the Ukraine, the actions by China in the East and South China Seas persuaded the central bankers of the West that their perceived partners in Moscow and Beijing had strayed from the new global financial order and in fact were looking to begin a separate if not greater power using their natural resources and population advantages to supersede…


Chinese Stock Markets ‘Shanghai’d’ 3% on Bad Export Data and Bond Default News

  by John Galt March 10, 2014 05:45 ET The news flow from China last night was anything but good: China February exports tumble unexpectedly Mainland stock exchanges drop amid bond default Deflation fears as China inflation drops to 2% If CNBS follows its normal mode of operation, they will begin their US broadcast day this morning by talking up the American economy, interviewing or playing excerpts from Warren Buffett, and using one of the following excuses for the Chinese stock market decline: a) It’s the weather b) It’s the Chinese…


June 24th AEP: The Bernank is Playing with Gasoline and Deflationary Fire

  by John Galt June 24, 2013 17:30 ET My readers may panic in: Seriously. Now Ambrose Evans-Pritchard agrees with me that the Federal Reserve via the Bernank is playing with a deflationary hand grenade with no pin in the safety and inside of a kiddie pool full of gasoline. His article in  the UK Telegraph tonight says it all: The Bernanke Fed is playing with deflationary fire The problem with fire, despite the enjoyment of playing with it as an irresponsible teenager, is that when one does so in a…


The End of Global Banking or Worse?

  by John Galt June 23 2013 05:00 ET   In a fascinating report by the McKinsey Global Institute, “Financial Globalization: Retreat or Reset?” , the details of just how isolationist the international financial system has become could be a leading indicator as to why the burgeoning regional currency war could erupt into a global monetary conflict as it appears that cross border banking has crawled to a halt in the wake of the great crash and deleveraging started in 2008. The figures from this report are supported by one series…


4/17 21:28 ET BREAKING: Gold and Metals Getting Whacked Again!

  by John Galt April 17, 2013 21:28 EDT Now the Central Banksters must be warning all their member banks to sell in unison to scare the ChiComs and Japs….   (Top chart from Investing.com second graphic from FinViz.com) That one down draft was a good $38 plus! Stay tuned because equities will follow if this evening turns into another deflationary bloodbath!!!!  


07.09.12 AEP: China heads for a deflationary shock

  by John Galt July 10, 2012 05:25 ET   The idea that China is going to lead the world out of this crisis would be laughable until one sees the data and reads last night’s entry from Ambrose Evans-Pritchard in the U.K. Telegraph:   China heads for a deflationary shock   In this article, Mr. Pritchard states this terrifying premise for the world economy:   China is on the cusp of a deflationary vortex.   This was signalled late last year by the sharpest contraction in the (real) M1 money…


5.13.12 AEP: World edges closer to deflationary slump as money contracts in China

by John Galt May 13, 2012 19:300 ET   The warning I posted about the gold market signalling something bad was happening (see: Gold is Sending a Dire Economic Warning) in the world’s economy very prescient appears to have been validated to date by the data coming from Communist China. The deflationary warning signal precious metals and commodities are sending is unmistakable and in tonight’s commentary by Ambrose Evans-Pritchard, that clarion is screaming a deafening alarm:   World edges closer to deflationary slump as money contracts in China   This trend…


Silver Mirrors Gold’s Decline but a Massive Rally will Follow

by John Galt May 9, 2012 19:00 ET   If one is led to believe the usual nonsense on the Bubblevisions, gold, silver, and anything that is considered “real money” will be smoked in the weeks to come.   For once, this esteemed, or full of steamed clams, blogger agrees.   The markets are indicating the following for long term paper silver bulls (I emphasize PAPER SILVER BULLS)   1. Severe correction.   2. Deliberate price suppression for industrial purposes.   3. A move to prevent a delivery crisis from various…


12.30 V of Galt: Predictions 2012 Live and in Color

By John Galt December 30, 2011 07:50 ET Buckle up. 2012 is almost here. Last year I was so-so in my predictions and for 2012 I probably will be also. If you are meek put on your Depends for this show or just assume the fetal position when the theme music stops. In the first half hour I’ll cover the news of the day, the financial news and then begin the prognostications which cover geopolitics, sports, U.S. politics, the economy, weather, and whatever else I feel like. There are no guarantees,…


The Coming Collapse might be your Final Chance to Legally Buy Physical Gold this Decade

By John Galt December 14, 2011 – 07:15 ET The current European implosion is bringing about a probable once in a lifetime opportunity which sadly might just be the last chance this decade to buy physical gold before capital controls worldwide and within the U.S. make it difficult if not impossible. The history of economic strife and plans by world governments to impose massive restrictions on the flow of funds to prevent internal collapse make gold an attractive target for seizure as political failings along with management of command control economies…


9/23 US Market Pregame Show: Let the Friday Follies Begin

By John Galt September 23, 2011 – 05:01 ET Effective at 5 p.m. Wednesday, September 21, 2011 the most profitable company in America was: Any bar within walking distance of Wall Street. With thousands of financial industry workers facing layoffs, the Federal Reserve dropping their shorts and mooning the Obamites and retirees of the nation, and Main Street more concerned about the televised distractions of our Roman Circus based society, the world is sending a strong signal that the cyclical bear has departed from its cave and wants to chow down…


9/21 Gold Says: Short term Deflation with a Worldwide Recession

By John Galt September 21, 2011 – 05:25 ET As many of my readers and listeners know, I am a huge proponent of pattern recognition not just within individual equities, markets, or commodities but in economic cycles also. Despite massive attempts at intervention in Europe and the United States, the actions since the summer of 2010 have been feeble at best, pathetic in reality. The chart pattern for gold was signaling a long term inflationary trend with the potential for hyperinflation until the double top was formed, creating a warning that…


8/18 AEP: Global credit markets are braced for Deflation and perhaps Depression

By John Galt August 18, 2011 – 21:45 ET And with this posting, I shall go to bed early as I fear things are going to spiral a tad tomorrow. In the mean time, I took the sub-headline from the UK Telegraph’s Ambrose Evans-Pritchard column tonight as it signals the ultimate demise of the “West” as a force in the world economy through the end of this decade if he is correct. Read the full story below by clicking on the title: Bond markets signal ‘Japanese’ slump for US and Europe…


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