Archive - Sep 2015 - Blog entry

The divergence meme that is the center of the dollar bull narrative was never predicated on precise timing of Fed's lift-off.   To go from no hike in September to Fed will never raise interest rates, or QE4 is next, is a needless exaggeration.  

The incredibly strong demand for physical precious metals around the world continues to be obscured by institutional selling of futures contracts on the COMEX. The paper or electronic market continues to dominate the spot price for now. But rising premiums and delays for popular bullion products suggests that proper price discovery reflecting real world supply and demand may be at hand.

She's a block away from the ghost of Steve Jobs. It's a lovely neighbhorhood, to be sure. But...........thirty million dollars???

There they go again...

Well, the "most anticipated" September FOMC meeting has come and gone, and no hike yet again. After the release of the FOMC statement, SPX rallied to a high of 2020, then sold down 30 handles into the close, and another -28 handles at today's open. Why? Well maybe people have finally realized the Fed is absolutely clueless, and that they have been completely misleading.

Yellen was more dovish than expected which is bullish for gold and suggests that the long awaited for bottom for gold may have occurred in early August prior to recent market volatility.

News That Matters

Told You Fool!

We advise investors to fade out the short term noise emanating from the Fed today and from Janet Yellen and focus on the reality

The simple fact that the Fed is struggling to increase interest rates from near 0% after seven long years should give pause for concern. It underlines the vulnerability of the U.S. economy and means that another recession is very likely. Indeed, the huge levels of debt at all levels of U.S. society and the significant increase in global debt levels during the last seven years mean that another recession is almost certain.

We are in good hands aren't we?

First we had “too big to fail”. Then came “too big to jail”. Now, finally, the U.S. Department of “Justice” is letting us know what it really thinks: U.S. Big Banks simply have a license to steal.

Today, most of the developing world, tomorrow most of the developed world. Today Ukraine, Syria, South Africa and Brazil. Tomorrow Ireland, Greece, the UK, the EU, other Middle Eastern and African nations and the U.S. (see important charts) 

Kyle Bass shared his macro views during the “Squawk on the Street”

In the end, whatever the Feds announce at 2PM NY time today should not affect your long-term outlook on markets as neither of the two possible decisions will significantly alter the future fate of global markets. Instead, the most important thing to understand is the massive fraud that is systemic in the global financial system and to allow a deep and complex understanding of this fraud to drive your investment decisions.