Economic Crisis News 2015-09-18
US Markets Expecting Crash
The Shemitah year just ended, and the next big date many people are anticipating is September 23rd which is next Wednesday. We already saw today a 1 three quarter percent drop in the Dow thanks to the Federal Reserve. As us, and many of our economic analyst colleagues predicted; Interest Rates will not be raised any time soon.
Has QE finally lost its steam? People are now coming to the realization that it did not help the struggling economy and that we are still in a depression. If we were not in a depression, they would be able to raise rates, and at this point, them doing so would weaken an already struggling economy.
Watch this excellent video we found from BestEvidence that describes well the situation and actions of our central bank for the last 8 years. Right now, we're still at zero percent rates for 81 straight months. More horrific is the recent admission by Janet Yellen that opened the Pandora's Box of potential Negative Interest Rates. As Andy Hoffman just said “It's only a matter of time before the all-out implosion of history's largest ponzi scheme.”
To see how bad a predicament the US Government is in, just do this: Go to google and search “Congress budget.” With an October 1st deadline, both chambers have nothing to show for a budget again. When we searched this, we see a headline of Reid & Pelosi proclaiming congress should pass a stop gap resolution.
Our 'leaders' are so late in the game they're still telling each other they need to pass something instead of actually talking about a budget bill. There is no time left...perhaps the Pope's visit next week could help solve this budget dilemma or give Congress the faith to talk actual budget instead of talking about talking about the budget? Get ready for another party shutdown.
Iran Nuclear Deal
With the Congress failing to pass any legislation against the Iran Nuclear Deal, it is now set to be implemented with Kerry appointing former Poland Ambassador Stephen Mull to lead the effort. The official adoption date is October 18th.
As Kerry said, a breakup of this agreement could spell the death of the US Dollar, perhaps this is why it is being let through, or it will provide a reason for the dollar crisis coming very soon...make no mistake, there could also be a World War 3 coming to blame for the global currency reset so that we don't blame the real culprit; the corrupt financial system and our leaders for the last 50 years.
Precious Metals Physical Shortage Coming
As The Wealth Watchman recently proclaimed, the COMEX is not a significant delivery mechanism for gold and silver and thus China does not have a reason to break the COMEX when they get just as much Gold every 30 days as the COMEX has in entirety. China will not go for real price discovery until all supplies are exhausted and they can't get physical metal. As the video points out, India is becoming ever more important in this gold/silver physical supply and price discussion. He says “India will help free silver from the rigging.”
SRSrocco also reports India sucking up US Silver Exports, jumping from zero to 39 tons in May and a whopping 75 tons in June this year! This is more than the average export from January to April of which 90% went to our northern neighbor Canada. India's silver imports surged 61% in the first five months of this year.
Further exemplifying the coming shortage is the fact that JP Morgan just lost in one day 45% of it's registered gold inventory in the COMEX. They now hold the equivalent of just 1/3rd metric ton or little over ten thousand ounces. For silver the current COMEX drain is more than double the monthly decline rate experienced from March 2010 to July 2011. Registered inventories are down 31% from 70.5 Million Ounces in April to 48.6 Million now. With these facts and the Federal Reserve decision, no wonder we saw Silver spot price shoot back to over 15 dollars per ounce in such a short period this week.
Wait times for certain retail bullion products are reaching upwards of 2 months. Because of this, investors are buying more gold bringing Quarter 3 sales of Gold Eagles three times greater than Quarter 1 or 2 this year.
Even Mike Maloney of GoldSilver.com is reporting delays of 8 weeks from mints that they want to use for silver products. In regards to Gold, Mike also revealed that there's 252 ounces of claims for every 1 ounce of gold in the COMEX.
Watch a new Future Money Trends documentary today on the fantastic investment prospects of Platinum which is 20x more rare than Gold yet the price is lower!
Oil is still trying to recover upward, back to 47 dollars for WTI and 49 dollars Brent. On september 10th the EIA reported a production decline in the Continental US of 208 thousand barrels a day, mostly shale production, about 10% of what's estimated to be the supply surplus of the world. OilPrice.com expects a further price recovery as oil shale production declines as we predicted would take 8 or more months when we made our Oil Wars Vol 1 & 2 videos earlier this year.
We just released another social issues documentary this week called “Violence Control” check it out by clicking here. [WARNING] These real government violence statistics may shock hardcore liberals and #BlackLivesMatter activists.