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Two Facts That Are Bigger Than the Debate

Phoenix Capital Research's picture





 

 

While the media world is abuzz with last night’s Presidential debate, I’d like to cut through the noise and present you with two truly staggering facts that need to be kept in mind as the backdrop for the US Presidential Election

 

Fact #1: EU leaders have stated point blank that they were asked to keep things quiet until after the election.

 

Regardless of your party affiliation, social views or the like, we have to ask ourselves “what was promised in return?”

 

If you’ve been reading me for some time, you know by now that the EU is in massive trouble. Spain is currently drawing over €400 billion from the ECB.

 

Let’s put this number in perspective… in June before Spain requested a €100 billion bailout, the country was drawing only €300 billion from the ECB.

 

Since that time and now, the ECB has promised to provide unlimited bond buying… and even Germany has indicated it would be open to some sort of a Spanish bailout…

 

And yet, Spain is now borrowing even MORE than it was in June.

 

This is not progress in any way… if anything it indicates that things are worsening in the EU’s financial system at a staggering pace. The powers that be are keeping things calm until after the election… at which time there will be absolute hell to pay.

 

And we Americans are going to be on the hook in one form or another. Something was promised in exchange for the EU keeping things quiet. And we won’t find out what it is until after November 6

 

Fact #2: China is facing a severe downturn if not outright collapse.

 

As I’ve stated many times before, the China economic “miracle” is in fact one colossal Government funded fraud. While the media attempts to spin China as still growing, executives over there have stated that in fact things are far worse than is publicly known.

 

Many economists expect the Chinese government to announce Thursday that economic growth in the third quarter was barely short of the official target of 7.5 percent. But Chinese business executives said that the reality was worse for many companies selling in the domestic market, leaving considerable room for a rebound.

 

All industries are going down, but why aren’t the official statistics going down?” asked Bob Wang, the sales manager of Kralle Tools, a manufacturer in Wenzhou, an eastern city, that makes circular saw blades for lumber mills.

 

He said he believed that government officials had been underestimating the extent of China’s slowdown to avoid losing face.

 

http://www.nytimes.com/2012/10/16/business/global/at-trade-fair-chinese-exporters-a-bit-more-optimistic.html?pagewanted=2&_r=2

 

So… expect the news out of China to get worse and worse once the election is over. How would the world react to news that the “miracle” which supposedly pulled the globe out of recession is in fact collapsing?

 

Not well.

 

Europe and China combined account for 34% of the world’s GDP. Throw in the US which has re-entered a recession and 55% of the globe’s GDP is in contraction.

 

And everyone is waiting on November 6 to see how this will pan out.

 

For more market commentary and investment insights, swing by www.gainspainscapital.com . We offer a slew of free Special reports outlining inflationary threats, how to buy bullion and more!

 

Best Regards,

Graham Summers

 


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Wed, 10/17/2012 - 19:43 | Link to Comment tempo
tempo's picture

The elephant issue... 4 of 9 US Supreme court judges will be over 80 yrs old during the next 4 yrs and the next President will have a chance to appoint 3 or more. If O wins the progressives will have a 6 to 7 majority on all constitutional issues. Congress will become meaningless and the Contitutional republic and state rights will be gutted. The imperial Presidency will be in place. Hail King Obama!!

Wed, 10/17/2012 - 18:05 | Link to Comment sgt_doom
sgt_doom's picture

Time for Global War .....

Wed, 10/17/2012 - 17:59 | Link to Comment LooseLee
LooseLee's picture

All Bullish news for the idiotic BULLTARD---the least intelligent of the 'investing class'....

Wed, 10/17/2012 - 17:51 | Link to Comment alp
alp's picture

Graham, now with the IMF, governments and Central Bankers actively engaged in outright lying and pretending that everything is OK, such as they are doing with Spain, what you have to analyse, in my opinion, are not the fundamentals in themselves but for how long IMF, governments and Central Bankers can pretend and lie that everything is alright, deceiving the MSM. That's all that you and other ZHedgers have to do, I think. 

Wed, 10/17/2012 - 18:01 | Link to Comment LooseLee
LooseLee's picture

You can fool a BULLTARD 100% of the time....

Wed, 10/17/2012 - 16:01 | Link to Comment GeezerGeek
GeezerGeek's picture

According to the article, one Bob Wang believed that government officials had been underestimating the extent of China’s slowdown. So did the Chinese government learn how to manipulate economic figures from Barack "Wang" Obama here in the US, or did Barack learn from the Chinese government, or are all politicians liars?

Wed, 10/17/2012 - 17:37 | Link to Comment DosZap
DosZap's picture

Geezer,

With the narcissist n thief, it is like the Chineee............all about FACE.

And re-elction.

The PEOPLE can eat feces and die.He could care less,all he wants is four more totally unabated and we will be in a full blown civil war,or totally slaves.

Wed, 10/17/2012 - 18:03 | Link to Comment LooseLee
LooseLee's picture

Bullish for a BULLTARD!

Wed, 10/17/2012 - 15:06 | Link to Comment Meremortal
Meremortal's picture

Cool, the perennial ZeroHedge favorite is back, hyperinflation!

Back as a favorite, not as a reality. But, it's a start!

Wait, it is a reality somewhere. That would be in Iran. Yes, interference by multiple govts can cause hyperinflation.

So, there's your model. Let's watch it play out, shall we?

 

Wed, 10/17/2012 - 12:31 | Link to Comment GottaBKiddn
GottaBKiddn's picture

Did someone say that collapse was going to be pretty?

Wed, 10/17/2012 - 12:24 | Link to Comment JohnFrodo
Wed, 10/17/2012 - 18:22 | Link to Comment NeedtoSecede
NeedtoSecede's picture

And I hate to say it, but the world is wound up so tight right now, that with just the right (wrong) set of events, you wish you hade been long body bags...

Best case US turns out like Japan and the rest of the world muddles along.  But if fate has here way and just a couple things go her way, we could be looking at WWIII

Wed, 10/17/2012 - 12:06 | Link to Comment Quinvarius
Quinvarius's picture

I think it is finally the Dollar's turn to "collapse".  I am not convinced by all the global finger pointing that there is a heavier market than the USD,

Wed, 10/17/2012 - 12:42 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Most people simply do not comprehend that a falling dollar equates to rising sales (priced in dollars), rising stock markets (priced in dollars), and rising home values (priced in dollars).

This is just one reason why governments love deficit spending...it makes them look better than they are...

Nominal Returns

 

vs.

 

Real Returns

Wed, 10/17/2012 - 18:05 | Link to Comment sgt_doom
sgt_doom's picture

Crikey!  Where the bloody Hell does this guy dig up photos of my girlfriends from????

Wed, 10/17/2012 - 14:15 | Link to Comment kaiserhoff
kaiserhoff's picture

Have a little mercy, HH.  Some of us just came back from lunch.

Wed, 10/17/2012 - 11:54 | Link to Comment agNau
agNau's picture

Still in "catch-up" mode Grahammmmmmmmmmmm....
Quote me on this Grahammmmmmmmmmmmm......

TRUTH is the biggest casuality in the new world order!

There is something for you to think about......what are the future implications of complete control of TRUTH.
TODAY WE SEE MARKETS CONTROLLED BY ALTERATION/DENIAL OF TRUTH.
Follow the bouncing ball of that thought process.....
and someday you may be a successful news letter writer.

Wed, 10/17/2012 - 11:44 | Link to Comment “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

Word of caution:  When the European banks fail, the US banks swirl the drain and get flushed right with them.  

All the printing and bond purchases these fucking ass holes think they can get away with will only last so long.

We are witness to a shit show of epic proportions.

Unless something drastically changes, the world will witness massive numbers of personal, municipal, state, and national bankruptcies; in addition to a period of hyper inflation. 

If you listen to the bankster/crony insiders, they'll assure you the world merely has to grow their way out of this mess.

Guess what: The crony bankster scum bags world wide have taken care of themselves and their loved ones; and all they plan on doing is hiding out for about a year, waiting for all the rest of us to shoot, kill, and eat each other because of systemic break down.

Prepare for some very scary times in the near future.

Wed, 10/17/2012 - 18:09 | Link to Comment LooseLee
LooseLee's picture

DEFLATION first; then Inflation. No Hyper-Inflation in the senior currency I am afraid....

Wed, 10/17/2012 - 14:37 | Link to Comment zuuma
zuuma's picture

No worries!

Another case of 7.62 NATO surplus is on the way.

 

Wed, 10/17/2012 - 19:40 | Link to Comment New_Meat
New_Meat's picture

ya gotta worry about more of them than u have rounds.

let alone sleeping 'n eatin'

- Ned

Wed, 10/17/2012 - 15:20 | Link to Comment cossack55
cossack55's picture

Get it while its still legal.  Mine all fell out of my boat and I can't afford it,

Wed, 10/17/2012 - 13:59 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

i concur we could see hyperinflation while engaged in both a civil/race war, and www3.. not to appealing

Wed, 10/17/2012 - 11:52 | Link to Comment web bot
web bot's picture

The whole world has turned "happy". Housing is up, retail is moving... But what about that $1,000,000,000,000+ deficit? the fiscal cliff? unlimited money printing? the fact that the 22 times in recorded history that countries have debased their currency, it has always ended bad?

Sit tight... it's not what it appears. History is never wrong.

Wed, 10/17/2012 - 21:13 | Link to Comment Imminent Crucible
Imminent Crucible's picture

"the 22 times in recorded history that countries have debased their currency"

Typo, right? There are hundreds of collapsed currencies. Zimbabwe alone recorded 4 major currency revaluations in recent years. Weimar Germany, Austria and Hungary all collapsed their currencies with repeated devaluations. Mexico has debased its gold, silver and cupro-nickel coinage numerous times in the 20th Century, and the U.S. dollar has been replaced six times since the first U.S. notes were printed. First United States Bank Notes, Second US Bank Notes, the Lincoln Greenback, the U.S. gold certificate and Silver certificates, the gold redeemable (to foreign central banks) Bretton Woods Federal Reserve Note of 1945 and finally, the non-redeemable backed-by-nothing Federal Reserve note of 1972. Argentina has had seven currencies, Ecuador tossed out the sucre for the dollar, Peru discarded their currency, Turkey, Greece, and numerous others have suffered hyperinflationary currency failures.

Have a look at the colorful and utterly failed history of fiat paper:  http://dollardaze.org/blog/?post_id=00405

Paper money doesn't work because it grows on trees. Politicians and central bankers cannot resist the urge to buy the public's allegiance through diluting the money supply with paper and ink.

Wed, 10/17/2012 - 12:25 | Link to Comment fourchan
fourchan's picture

the risk the private banks have heaped on the us taxpayer.

Wed, 10/17/2012 - 11:35 | Link to Comment DaddyO
DaddyO's picture

 

Ah the deceit and chaos of subterfuge!!

DaddyO

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