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Stockman warns of ‘debt supernova’
David Stockman, former Reagan OMB Director, publisher Contra Corner, as interviewed on CNBC August 6, 2015:
Stockman issues dire warnings. He has long warned that the stock market is on the verge of a massive collapse, and the recent price action has him even more convinced than ever that the bottom is about to fall out.
“I think it’s pretty obvious that the top is in,” he said Thursday on CNBC’s “Futures Now.” The S&P 500 has traded in a historically narrow range for the better part of 2015, having moved just 1 percent higher year to date. “It’s just waiting for the knee-jerk bulls, robo traders and dip buyer to finally capitulate.”
Stockman … believes that the excessive monetary policy from central banks around the world has created a “debt supernova,” and all the signs point to “the end of the central bank enabled bubble,” which could cause a worldwide recession.
“It has to do with the fact that the world economy, including the U.S., is heading into what is clearly going to be an epochal deflation to the likes of what we have never experienced in modern time.”
For China, Treasuries and gold are powerful weapons
Mining entrepreneur and market analyst Jim Sinclair writes that China will not take kindly to the International Monetary Fund’s postponement of the inclusion of the yuan in the agency’s Special Drawing Rights currency. China, Sinclair says, may retaliate by dumping U.S. Treasuries and blowing interest rates upward or forcing the Federal Reserve to monetize billions of bonds. China also may retaliate, he adds, by pulling the veil off the central bank gold market-rigging operation. Sinclair’s commentary is headlined “The Rumblings of War” and it’s posted at JSMineset.com here.
From the Gold Anti-Trust Action Committee:
Bank of England study: Gold is best money, but buying it risks offending U.S.
A Bank of England policy study written in 1988 describes gold as “the ultimate store of value and medium of exchange” because it carries no counterparty risk but cautions against increasing the United Kingdom’s gold reserves because doing so might be construed as a negative comment on the U.S. dollar and thus would risk giving “great offense to the United States.”
The study, written by Bank of England staff members, was located recently by gold researcher and GATA consultant Ronan Manly.
The study concludes that the British government should seek ways of earning a return on the country’s gold reserves. The United Kingdom’s leasing of gold may have been encouraged by the paper – and certainly would have pleased the United States by helping to suppress the gold price and strengthen the dollar – though the bank told GATA in 2011 that the UK had stopped leasing gold in 2007.
A text copy of the study is viewable here.
From Silver Coin Investor:
Living with rigged markets
In his new commentary, “Living with Rigged Markets,” Silver Coin Investor proprietor Jeffrey Lewis notes that the sort of questions GATA lately has been putting to supposed gold market analysts about the gold market apply well to the silver market too. Lewis’ commentary is posted at Silver Coin Investor here.
Unprecedented backwardation in gold
GoldMoney founder and GATA consultant James Turk tells USAWatchdog’s Greg Hunter that he has never seen such a long period of backwardation in the gold market. Turk says that “the money bubble” is getting ready to pop. His interview is 26 minutes long and can be watched at USAWatchdog here.
5 extraordinary things that will shake up precious metals
Writing at TheStreet.com, Stefan Gleason, president of Money Metals Exchange in Eagle, Idaho, enumerates “Five Extraordinary Things that Will Shake Up Precious Metals,” basically a list of the fundamental factors supporting a rise in price for the monetary metals, including the imminent collapse of the monetary metals mining industry, its agreement to die quietly and cease production.
Will fundamentals ever again mean anything in markets that, like the gold and silver markets, are controlled by surreptitious intervention by central banks and their agents? Certainly not with their permission. But if this central bank policy is sufficiently exposed, anything could happen.
Gleason’s commentary is posted at The Street here.
From Investment Research Dynamics:
GLD looting continues
Many signs are developing of high demand for gold amid the recent spike down in prices, Dave Kranzler of Investment Research Dynamics reports, like the bullion bank raiding of the exchange-traded fund GLD. Kranzler’s analysis is headlined “Massive Shortages in Gold and Silver Developing – GLD Looting Continues” and it’s posted at IRD here.
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