Thursday, August 20, 2015

The More Currencies Weaken The More Unmanageable The Debt Loads, Americans Bracing for September Shocker, Billionaire Acquires Absolute CRAPLOAD of Gold Totaling Well Over $300,000,000

We live in some kind of fractal economy in which everything is connected and no one knows, how this macroeconomy is working. This fiat currency miracle is working some how. It’s fake and illusion and its working. I expected crash 2 years ago and bubble is just expanding since then.
But anyways – we need new Breton woods. We need new currency for new millenium. Now we live in a world, when dollar empire is slowly disintegrating. Bretton woods put all the power into hands of few, who control the most powerful currency of all times – dollar. And now, when dollar is dying, its masters don’t want to let all that power out of their hand.
And as wounded beast is most bloodthirsty, world is drowning in blood… Only collapse of dollar can stop this madness, but there will be a lot of blood…
Weekly Commentary: China
…The “currency war” issue garnered deserved attention this week. With currency markets in disarray and disinflationary pressures mounting globally, increasingly desperate central bank measures attempt to spur inflation. “Enrich thy neighbor” – Ben Bernanke’s answer to “beggar thy neighbor” concerns – sounds even more ridiculous these days. Asian currencies were under intense pressure this week. Perhaps it’s related to fears of a cycle of competitive devaluations. Mainly, I believe it is part of an intensifying exodus of “hot money” from a region especially vulnerable to financial contagion, instability and even calamity. And the more currencies weaken the more unmanageable the debt loads. Chinese devaluation only stokes this fire.
This week’s 2.8% currency decline (vs. the dollar) offers little relief to Chinese manufactures. And while I do believe the Chinese economic downturn has gained important (post-stock market Bubble) momentum, I don’t see economic weakness as the driving force behind this week’s policy move. Chinese officials are alarmed about a sudden Credit slowdown and the risk of a self-reinforcing deflationary dynamic. The Chinese are fearful of their increasingly fragile Credit system.
Currency pegs are dangerously seductive. The longer they remain in place the more advantageous they appear. They are pro-“hot money” flows. Over time they become increasingly pro-leverage and speculation. They are pro-Bubble – which means pro-tantalizing boom. In the end, currency peg regimes ensure precarious financial and economic imbalances. And, repeatedly, derivatives markets have become the epicenter of boom and bust dynamics. Peg the two most important global currencies together, adopt flawed policies, let Bubbles run loose, promote historic expansions of “money” and Credit – and you’re asking for trouble.
Most view the Chinese currency as fundamentally strong. Surely Chinese policymakers see it this way. After all, China has a colossal export sector. The People’s Bank of China is sitting on an unmatched $3.7 TN hoard of international reserves. But is the currency sound? What are intermediate to longer-term prospects? How fragile is the Chinese Credit system? How much central government debt and monetization will be employed to counter a Credit and economic bust?

http://creditbubblebulletin.blogspot.com/2015/08/weekly-commentary-china.html
Bad Moon rising: Americans bracing for September shocker
Across the vast expanse of the internet, everyone from professional economists to armchair theorists are sounding the alarm that next month may hold some ugly surprises for the global economy.
Despite exorbitant executive salaries, record earnings on Wall Street and a surging dollar, an increasing number of forecasters are warning the feel-good data is severely skewered – a bit like a new coat of paint that used-car dealerships use to conceal the fact that a car’s engine is shot. Indeed, many experts are giving the rickety US-made jalopy just months before the big collapse begins.
Gerald Celente, the founder of Trends Research, who predicted the “panic of 2008,” says the economic earthquake will send reverberations around the world.
“You’re going to see a global stock market crash,” Celente told King World News. “There’s going to be panic on the streets from Wall Street to Shanghai, to the UK down to Brazil.”
“You’re going to see one market after another begin to collapse.”
Doug Casey, a successful investor and the head of Casey Research, saw little to be upbeat about in the current economic climate.
“With these stupid governments printing trillions and trillions of new currency units,” Casey, describing the US Federal Reserve’s quantitative easing program, told Reason magazine in a recent interview, “it’s building up to a catastrophe of historic proportions.”
And he certainly does not advise keeping much money in any financial institution.
“Most of the banks in the world are bankrupt,” he said.
In a recent conversation between senior analyst Larry Edelson and Mike Burnick, the Research Director for Weiss Research, Edelson made a stunning prediction, even providing an exact date for what he predicts will be a “rollercoaster ride through hell.”
“On October 7, 2015, the first economic super cycle since 1929 will trigger a global financial crisis of epic proportions. It will bring Europe, Japan and the United States to their knees, sending nearly one billion human beings on a roller-coaster ride through hell for the next five years. A ride like no generation has ever seen. I am 100 percent confident it will hit within the next few months.”
And there are dozens of other such apocalyptic predictions on the health of the global economy that it leaves one feeling dizzy and desperate – something like watching an approaching tidal wave in the full knowledge there is no hope of outrunning it.
Meanwhile, confidence in the US economy among Americans dropped sharply in July to its lowest level in 2015, according to a new US Economic Confidence Index rating released by Gallup earlier this month.
Perhaps the non-stop onslaught of super-negative news – everything from the Greek tragedy to the Chinese currency devaluation – has got Americans convinced the global economy has entered dangerous waters. Indeed, scratch the shiny surface of the US economy and the wear and rust is immediately apparent.
Jeff Berwick, Canadian entrepreneur and editor of The Dollar Vigilante, recently told Gordon T. Long in an interview:“There’s enough going on in September to have me incredibly curious and concerned about what’s going to happen.”
http://www.rt.com/op-edge/312576-september-economy-crash-eclipse/
Hedge fund billionaire Stan Druckenmiller has made a huge bet on gold
Legendary hedge fund manager Stanley Druckenmiller, who runs Duquesne Capital, made a huge bet on gold during the second quarter.
Duquesne, which is now run as a family office, finished the second quarter with 2.88 million shares of SPDR Gold Trust, according to the fund’s 13F filing.
The new position is now Druckenmiller’s largest long position.
Druckenmiller’s GLD stake had a value of $300.3 million at the end of the quarter based on the June 30 closing share price of $104.27. Shares of GLD have fallen 5.5% since then.
Druckenmiller has previously said that when he sees something that really excites him he will “bet the ranch on it.” We reached out to Druckenmiller for comment on his GLD position.
Druckenmiller also increased his position in Facebook to 1,872,700 shares, up from 252,000 shares in the first quarter. He also took big new positions in Freeport-McMoRan (3.547 million shares), Halliburton (1.547 million shares), and Wells Fargo (1,679,400 shares), the filing shows.
Read more: http://www.businessinsider.com/druckenmiller-buys-gld-shares-2015-8#ixzz3j7cZbruf

DR

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