On the equity market front, it’s another day of money junkie addicts hooked on making all the money they can and the Bankster Mob injecting them with monetary methadone to keep them on their ripping-off-the-system high.
Over the last few weeks, the stock market news was about Greensill Capital, run by Lex Greensill, the Australian “financial” firm (i.e., gambling operation) that was valued at $3.5 billion less than two years ago… that went bust this month.
As we keep quoting one of America’s great comedians, George Carlin, “It’s one big club, and you ain’t in it.” One of the club members, the former U.K. Prime Minister David Cameron, who was hired by Greensill to get the company access to COVID loan schemes and other deals, is now facing a probe by the U.K. Committee on Standards in Public Life. The scheme was first reported by the Financial Times.
Now the latest equity market news, that first broke on Thursday, is about the hedge fund (i.e., gambling operation) Archegos Capital Management’s $30 billion meltdown and the hit to the Bankster Mob that funded them… of which Nomura and Credit Suisse took the biggest hits.
We note these occurrences to illustrate how rigged the equity markets are and how Wall Street is completely disconnected to Main Street.
Need proof?
Who on Main Street would know what “Archego Capital Management” is, what they do, and what it means?
As we have documented, and Gregory Mannarino continues to detail in his “Trends in the Markets” column, the equity markets are on an artificial high, pumped by the Federal Reserve Bank, which has injected scores of trillions into the system since the Panic of ’08 to keep the money junkies on their high.
When will it collapse?
The warning signs are flashing.
All it will take is a wild card meltdown of hedge funds, private equity groups, and so-called investment banks, the special purpose acquisition company (SPAC) racket of taking private companies public… which will mirror the sub-prime, mortgage-backed securities Bankster scam that set off the Panic of ’08.
And, of course, there are the record-low interest rates that have stalled the “Greatest Depression” by flooding the economic system with cheap money, plus the trillions pumped in by Washington as the nation slumps into a $28 trillion debt load.
As we have forecast, despite the Federal Reserve saying rates would remain near zero until around 2024, in fact, they are already rising and the damage is clear: the more it costs to borrow, the less will be borrowed, and the less that’s borrowed, the deeper the economy will sink.
On the housing front, for example, with mortgage rates hitting record lows, there was a $3 trillion refinancing splurge in 2020… the best year ever.
But now with rates up from their historic lows, the Mortgage Bankers Association reported that less than 61 percent of mortgage applications last week were for refinancing, down from 75 percent in January,
As rates go higher, Fannie Mae projects 13 percent fewer home loans this year, after hitting a record $4.5 trillion last year.
To illustrate the inequity of the equity markets repeatedly hitting record highs since the COVID War broke out last year, while much of the world’s economy was locked down, this headline from the Financial Times on 24 April 2020, says it all:
Investors baffled by soaring stocks in ‘monster’ depression
The article went on to say, “The divergence between the flying stock market and the dying economy is so extreme, it is leaving many analysts scrambling for explanations.”
Yes, it made no sense then… or now. And the “explanation” is that the markets are rigged… artificially pumped up with monetary methadone by the Bankster Mob.
With our forecast for inflation to continue to rise, interest rates will also be pushed up. And as we just illustrated with the housing sector, the higher rates go, the deeper the economy will fall. As it goes down, so, too, will Wall Street.
When the markets crash, America and the world will dive deeply into the “Greatest Depression.”
Today, the Dow fell 100 points from its latest record high.
Gold/Silver: Both precious metals got bashed today with gold and silver prices shedding some 2 percent as Treasury yields moved up and the dollar gained strength.
On the expectations that Congress will push through President Biden’s $3 trillion infrastructure plan, U.S. 10-year Treasury yields rose to a 14-month peak. With high hopes for a strong economic “Biden Bounce,” the demand for safe-haven assets has diminished among investors.
Contrary to what the equity markets are selling, on the commodities front, however, there is a declining expectation for strong economic growth.
As we have noted, copper prices, which jumped 67 percent over the past year, continued their decline, falling some 1.6 percent today. We note this since we refer to copper as “Dr. Copper” because it is reputed to have a Ph.D. in economics due to its ability to predict global-economy strength and weakness since it is used in most sectors of industry. Thus, the recent falls are signals of slowing economic growth… yet, the declining prices are being ignored by the Wall Street gamblers.
TREND FORECAST: How low will gold and silver go? We maintain our forecast that gold’s low breakout point is $1,650 per ounce. Should it hit that level, the downside risk is around $1,550 per ounce.
As for silver, should it break below $22 per ounce, the downside risk is in the $17 per ounce range.
Considering silver is the most efficient conductor of electricity, and it has a strategic demand in both hi-tech and heavy industry, we do not forecast it will break below that range.
We maintain our forecast for gold to break above $2,100 per ounce this year and silver to move above $50 per ounce.
When the equity markets crash – and it is a matter of when, not if – precious metal prices will spike.
Oil: Again, contrary to The Street’s expectations for a soaring economy, Crude oil fell 1.51 percent today on lower demand expectations. Closing at $60 per barrel, Crude is down some $6 from its recent high.
Indeed, with the dread spreading of pandemic “doom” and fears of new coronavirus lockdowns, oil supply is outstripping demand despite the OPEC+ production cutbacks that have kept millions of barrels a day off the market.
Bitcoin: Bitcoin, at $58,816 as we go to press, is up nearly $4,000 from its trading range over the past four weeks. While gold and silver prices are slumping, major cryptocurrencies continue to rise as new breeds of “investors” seek the digital coins printed on nothing and backed by nothing as safe-haven assets.
What will bring the crypto market down is when governments ban them and when they grab market share from them as more national currencies go digital.
Until that time, it is anybody’s guess as to how high they can fly. On the downside, we maintain our 5 January forecast that the breakout point for the coin heading toward the end of the crypto rush will be when prices fall below $25,000 per coin.
