M1

Eric Peters On Tipping Points: "It All Worked Incredibly Well, Until It Blew Up"

"As a measure of market fear, it was quite useful, until it became something that could be traded. "The sheer size of outstanding positions in VIX futures, VIX options, ETFs, ETNs and bank volatility selling programs is such that those trading these markets can no longer separate the true measure of volatility from their own actions."

Rickards Warns "Cracks In The Dollar Are Getting Larger"

"The 1920s and 1930s witnessed a long, slow decline in sterling as it devalued against gold in 1931, and devalued again against the dollar in 1936... The dollar is losing its leading reserve currency status now, but there’s no single announcement or crucial event, just a long, slow process of marginalization."

Watch Live: Mario Draghi Explains How Great Europe's Doing (& Why You Should Sell The Euro)

The last few weeks have seen anescalation in the leaks and comments aimed at jawboning the Euro lower, despite crowing about the success of The ECB's program to save the EU and its inability to decide whether 'enough is enough' for 'whatever it takes' policy. A day after Europe's largest commercial bank tells him to pull the plug on easy money, or face the consequences, we await Mario Draghi's press conference to explain it all (or not)...

Norway’s Big Fish Story

The greatest consequences of Nordic socialism are how it instills a lack of courage and imagination when facing global problems. For such a system to work, people must be mostly compliant and amicable. Currently, Norway can manage the economic shift by drawing from The Fund but I would hope that they want to do more than just get by. It is obvious that betting on fish is a bad idea.

China's $9 Trillion Shadow Banking System Shrinks For The First Time In 9 Months

For the first time in 9 months China's $9 trillion Shadow Banking Industry - defined as the sum of Trust Loans, Entrusted Loans and Undiscounted Bank Loans - contracted, which begs the question: will the biggest deleveraging ever attempted in Chinese history be smooth and contained, or lead to another financial crisis?

Beware The Ides Of October...

"We are are waiting for Mr. October to step up and knock the risk markets for a loop, however, resulting in a nice fall correction (pun intended).  We believe many factors will be converging  by then, including..."

Moscow, Baghdad Sign Huge Arms Deal

The US still has large influence in Iraq but it does not own it. The impressive performance of Russian weapons in Syria makes them in high demand among the countries facing the terrorist threat. The tank deal between Russia and Iraq reflects the trend.

JPMorgan Lists Five "Red Flags" That Point To A 10% Downside Correction

"US growth momentum has turned mixed, with a rollover in manufacturing indicators, credit, housing and car sales. US CESI is in negative territory, which was typically associated with more defensive market leadership. CESI has a good correlation with the S&P500  and points to 10%+ downside for stocks."

Moving Closer To The Precipice

Slowing money supply and credit growth and historically extremely high stock market valuations far more often than not turn out to be uneasy bedfellows. In fact, usually the latter will eventually fall out of bed. Circumspection remains advisable.

China's Plan To Subvert The Global Dollar Standard

The instability brought into the geopolitical equation by the Trump presidency, and the early signs the US economy is grinding to a halt under the sheer weight of consumer and government debt, are increasingly likely to prompt China and Russia into firm financial action, if only to protect themselves in an unstable financial and monetary environment.

'Reflation' In Danger Due To Low Liquidity

The poorer liquidity backdrop for broad and narrow money will represent a headwind to economic growth, risk assets and specifically bank stocks, which we recommend as shorts...