Despite a robust market in 2013, and a recovery in February after sharp losses in the first month of 2014, there are considerable questions about stock performance this year, even in the absence of a shock.
The solution? “The Commission will ask the bloc’s insurance watchdog in the second half of this year for advice on a possible draft law “to mobilize more personal pension savings for long-term financing”, the document said.” Mobilize, once again, is a more palatable word than, say, confiscate.
Along with deleveraging and tapering by the Federal Reserve, protectionist threats and greater regulation will probably hamper economic growth in export-dependent developing countries and the developed nations that are their main customers.
The vast majority of Americans are going to be absolutely blindsided by what is coming. They don’t understand how our financial system works, they don’t understand how vulnerable it is, and most of them blindly trust that our leaders know exactly what they are doing and that they will be able to fix our problems. As a result, most Americans are simply not prepared for the massive storm that is heading our way.
Crimea has been severed and all roads into the region are now blocked. Pro-Russians seized the government and troops are pretending to be Ukrainian. Yanukovych made a press conference thanking Russia for his protection claiming he is still the President and any laws passed by the Ukrainian Parliament are not valid because he did not sign them. He claims he will remain the President for even the May elections are not valid. His argument seems to be Ukraine belongs to him and his sons to do as he likes.
The largest U.S. bank by assets just instituted a new round of capital controls… Fox Business reports JPMorgan Chase will require its customers to show identification when making cash deposits into their own accounts. It also bans anyone from making cash deposits into accounts which aren’t their own. The new restrictions take effect on March 3. You can see Chase’s own announcement below…
“The most accurate 2012 predictions come from ancient civilizations, such as the Mayan, Aztec, Hopi, Hindu and Egyptian calendars, and all agree on the Maya December 21, 2012 end date. On that day at 11:11 am, the earth will be in the exact alignment with the sun and the center of the Milky Way Galaxy.”
Chris Martenson: Okay. Bring us up to date. What is happening in Argentina right now with respect to its currency, the peso?
Fernando Aguirre: Well, actually pretty recently, January 22, the peso lost 15% of its value. It has devalued quite a bit. It ended up losing 20% of its value that week, and it has been pretty crazy since then. Inflation has been rampant in some sectors, going up to 100% in food, grocery stores 20%, 30% in some cases. So it has been pretty complicated.
– Initially watch supports around 1672-1697, the converging 55 week moving average and 12 month moving average (see below for more). – A break below there, should we see it, would open the way towards the 200 week moving average at 1387, 25% off of the highs
Have you been paying attention to what has been happening in Argentina, Venezuela, Brazil, Ukraine, Turkey and China? If you are like most Americans, you have not been. Most Americans don’t seem to really care too much about what is happening in the rest of the world, but they should. In major cities all over the globe right now, there is looting, violence, shortages of basic supplies, and runs on the banks. We are not at a “global crisis” stage yet, but things are getting worse with each passing day.
Gold is rising right now not because of inflation, but because of the prospect of tensions rising that can lead to war. Ukraine is a DIRECT confrontation between the USA and Russia. This is not Iraq, Syria, Vietnam, nor Afghanistan. This is a DIRECT conflict and it is why I have been paying close attention to Ukraine.
Tom DeMark’s analogs - that we have been discussing for the last few weeks - have received some attention today as his medium- and short-term echoes of 1929’s crash continues to line up ominously. However, there is a much more concerning and repetitive cycle that BofAML notes suggests weakness in US equity markets through September. L
Here is the bottom line: a $10 billion taper (out of $85 billion) just caused Turkey to hike its rate by 4.25%. This is just the beginning. In the meantime, we hope our Turkish readers don’t suddenly need to take out a loan tomorrow morning. It may just be a tad more expensive.
For decades, it has been rumored the United States government was secretly sponsoring the smuggling of cocaine into the country. Federal officials have long denied such speculation, pointing out the billions of dollars spent intercepting drugs. Newly released documents, and testimony from Justice Department and DEA officials now show the stories of government running cocaine are true.
Are you prepared to live in a world in which every newborn baby is micro-chipped? We all know that this is in the pipeline in the near future unless humanity stands up and does whatever it takes to stop it. According to a recent report, the micro-chipping of newborn babies may be rolled out as early as “May 2014, in Europe and the US”. Though many question the accuracy of this time frame, there is no doubt that the micro-chipping of the entire population is a major goal of TPTB.
It’s that time of year again, when we begin to think of what the next one will bring. I will be doing my annual forecast issue next week, but my friend Gary Shilling has already done his and has graciously allowed me to use a shortened version of his letter as this week’s Thoughts from the Frontline. So without any further ado, let’s jump right to Gary’s look at where we are and where we’re going.
Editors’ Note: Following the huge popularity of this post, article source Amy Morin has authored a Dec. 3 guest post on exercises to increase mental strength here. Cheryl Conner has also interviewed Amy Morin in a Forbes video chat that expands on this article here.
The Way: The movie I want to talk about for Sagittarius is a gem of a movie called The Way. Written by Emilio Estevez for his father, Martin Sheen, it is a story of a surprising death and an equally surprising rebirth. The story is simple: a father heads overseas to recover the body of his estranged son who died while traveling the El Camino de Santiago. Once there, he decides to make the pilgrimage himself. El Camino De Santiago -The Way of St. James - has existed for over a thousand years. It has been one of the most important Christian pilgrimages since medieval times. St. James and his brother John were called the Sons of Thunder, and were two of Jesus’ closest disciples. Saint James supposedly preached in Iberia (Spain) and when he was martyred in Jerusalem, legend holds that his remains were carried by boat to northern Spain where he was buried on the site of what is now the city of Santiago de Compostela.
If there was one lesson that echoed in the majority of my letters this year, it’s “never bet against an entity that can print a limitless amount of money.” Here’s a look at the markets over the last two years of the two biggest initiators of the printing press, Japan and the United States:
Now that “bail-ins” have become accepted practice all over the planet, no bank account and no pension fund will ever be 100% safe again. In fact, Cyprus-style wealth confiscation is already starting to happen all around the world. As you will read
A more sustainable solution was proposed by Dr Fadhel Kaboub, Assistant Professor of Economics at Denison University in Ohio. In a letter posted in The Financial Times titled “What the Eurozone Needs Is Functional Finance,” he wrote: The eurozone’s obsession with “sound finance” is the root cause of today’s sovereign debt crisis. Austerity measures are not only incapable of solving the sovereign debt problem, but also a major obstacle to increasing aggregate demand in the eurozone. The Maastricht treaty’s “no bail-out, no exit, no default” clauses essentially amount to a joint economic suicide pact for the eurozone countries… . Unfortunately, the likelihood of a swift political solution to amend the EU treaty is highly improbable. Therefore, the most likely and least painful scenario for [the insolvent countries] is an exit from the eurozone combined with partial default and devaluation of a new national currency… . The takeaway lesson is that financial sovereignty and adequate policy co-ordination between fiscal and monetary authorities are the prerequisites for economic prosperity.
The city of Richmond, CA, in an effort to stabilize the community and prevent foreclosures, has offered to buy 624 underwater mortgages at discounts to the homes’ current value, concentrating on ones that are held in Wall Street instruments called private securitization trusts, and threatening to use the power of eminent domain to seize the mortgages if its offers are spurned. The idea of “eminent domain for the people” is also gaining traction with the city of El Monte. Predictably, Wall Street is fighting back by directing a lawsuit at blocking Richmond’s proposed use of eminent domain to write down mortgage loans for certain residents.
No One Reported the “December Slip” On December 10, European finance ministers held marathon talks. Their goal was to reach an agreement by year’s end, so measures can be enacted before the current European Parliament’s term expires in May. But some crucial elements of the agreement were left out of the story presented by the Associated Press. It said the ministers have made headway towards a Europe-wide bailout fund. Whether that fund is to be built up through assessing fees on the banks and member states, and how much control over contributions each country would have, has yet to be finalized. Here’s what wasn’t reported… On December 2, Michael Noonan, Ireland’s Minister for Finance, dropped a bombshell at the Future of Banking in Europe Conference. Yet you’d be hard pressed to find any mention of it in mainstream media. He discussed the need for a “toolkit” aimed at dealing with failing banks, while preserving essential bank operations and minimizing taxpayers’ exposure to losses. The shocker was when a smirking Noonan said “I think the new key phrase is ‘bail-in is going to replace bail-out,‘ with all the implications that that carries.” And it’s not just a threat to the European Union… Coming Soon to the United States
For years, there have been rumors that someday the U.S. government would raid private pension funds. Well, in Poland it just happened. According to Reuters, private pension funds were raided in order to reduce the size of the government debt… Poland said on Wednesday it will transfer to the state many of the assets held by private pension funds, slashing public debt but putting in doubt the future of the multi-billion-euro funds, many of them foreign-owned.
THE EU’s top official last night blasted Ireland’s economic collapse, claiming the euro currency was a “victim” of the problems caused by Ireland and ruled out a retrospective bank debt deal for Ireland. Credit: tvnewsroom
BLACKROCK, the world’s biggest investor, has warned that central banks are poised to tighten monetary policy in the Anglo-Saxon countries and China, advising clients to be ready to pull out of global stock markets at any sign of serious trouble.
He wrote The Great Boom Ahead in 1993, The Great Jobs Ahead in 1995, The Great Depression Ahead in 2009, and The Great Crash Ahead in 2011. What’s ahead now? A “demographic cliff,” according to Dent’s new book… Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019.
Many of the quotes that you are about to read are from individuals that actually predicted the subprime mortgage meltdown and the financial crisis of 2008 ahead of time. So they have a track record of being right. Does that guarantee that they will be right about what is coming in 2014? Of course not. In fact, as you will see below, not all of them agree about exactly what is coming next. But without a doubt, all of their forecasts are quite