Watch Out … Here Comes “Quantitative Tightening”

Submitted by William Bonner, Chairman – Bonner & Partners

Fixers on the Job

GUALFIN, Argentina – U.S. stocks were mostly flat yesterday. Investors didn’t know whether they were coming or going. We don’t know, either. But we rate the odds of “going” a lot higher than the odds of “coming.”

As we pointed out on Friday, there are two possibilities…

What we’ve seen over the past two weeks or so is a correction in a continuing bull market in stocks. Or we are in the early stages of a major bear market.

HungryFrom the ominous announcements department.

Most likely, it will be interpreted both ways. Because we probably are at the beginning of a bear market. And also not too far away from another explosive move higher for stocks. Why?

Because the authorities are not likely to let a bear market proceed in the normal way. Instead, as it intensifies, they are likely to intervene with such massive force (remember, this is war!) that it will send stocks flying, like the bumper of an automobile that has just hit a land mine. Continue reading

Angela Merkel Defeated by a 3-Year Old Dead Boy

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Marion Post Wolcott Works Progress Administration worker’s children, South Charleston, WV 1938

In the end, what should have been avoided all along, was. The refugees who were treated like subhumans for days in Hungary, and who in the end refused to be subjected to that treatment any longer and started walking to the Austrian border, are being taken as we speak to that border, on buses provided by the government in Budapest.

Meanwhile, we have all been subjected to the words and ideas of Victor Orban, the loose cannon who rules Hungary. The media largely portray the sudden change from refugees stuck on trains in Budapest train station and locations just outside of the city, to the buses that will take them to Austria and presumably Germany, as something that sprouted from Orban’s brain.

But that is not true. One can call Orban on his crazy notions, but not on decisions about the movements of the refugees. Both the decision to in effect ‘detain’ the thousands of refugees inside Hungary for days, and the decision late last night to let them leave, came from one person only: Angela Merkel. She’s the only one with sufficient power to make such things happen. Continue reading

There Goes Europe

Submitted by James Howard Kunstler  –

The desperate wish in what is loosely called the West to at least appear morally correct is unfortunately over-matched by the desperation of people fleeing unstable, overpopulated places outside the West, and it is a fiasco beyond even the events of the moment.

The refugee / immigrant crisis around the Mediterranean is a preview of a horror show to which there is no end in sight, and is certain to escalate. So anyone who indulges in fantasies about organizing an orderly, rational distribution of displaced persons for the current wave, is badly missing the point. Wave beyond wave awaits after the this one. And then what will the well-intentioned sentimentalists say? We wanted to do the right thing… we meant well… we cried when we saw the little boy dead on the beach….

Yes, the tragic intrusions of the US military in Iraq, Libya, Somalia, Syria, and elsewhere have been reckless and stupid. But that is not the whole story. The desert nations of the Middle East and North Africa (MENA) have populations abnormally swollen by a century of oil-and-gas-based agriculture, really by the benefits of Modernity in general. Now that the oil age is chugging to an unruly crack-up, and Modernity with it, and the earth’s climate is doing wonky things, and the rich nations to the north have faked their finances to the point of bankruptcy, well, circumstances have changed. Continue reading

On the state of the European Union – Address at the 41st Forum of The European House-Ambrosetti

Submitted by Yanis Varoufakis  –  The Yanis Varoufakis Blog

In a session entitled ‘Old and New Conflicts and Challenges in the EU’, featuring also Peter Sutherland (FT), Mario Monti and Otmar Issing, I used the unwillingness of the Eurogroup, and the troika, even to consider a document prepared by my (then) ministry  (entitled “A Policy Framework for Greece’s Fiscal Consolidation, Recover and Growth“) as a case in point of how Europe has lost its integrity and is in the process of losing its soul (judging by the scandalous failure to address the refugee crisis).

Have 10% of Wealth In Gold As “Fire Insurance” – Rickards

Submitted by Mark O’Byrne  –  GoldCore

‘Death of Money’ author Jim Rickards recommended a 10% allocation to physical gold when interviewed by the ‘Money Honey’ Maria Bartiromo on Fox Business last week.

In a very interesting interview which also included Barron’s Editor Jack Otter and FBN’s Dagen McDowell, Rickards said that gold is like “fire insurance on your house” …

“Nobody wants their house to burn down but if it does you are glad you have some insurance”.

(Click on the image to view the video on the Fox Business site)

Rickards points out that as gold is insurance you should not worry about its price as much as you would other assets. When you buy insurance you are not concerned when the price of the insurance falls. What is important is that you own it as it will protect from worst case financial and monetary scenarios.

He says that gold is money and warns that fiat currencies can lose value sharply if confidence disappears as has been seen in “5,000 years of history.”

Rickards reaffirmed his view that gold will rise to $10,000 per ounce but said that it is not gold rising to $10,000/ oz, rather it is the dollar losing value and a “collapse in the dollar” which could “start tomorrow” as we have an “unstable financial system.”

Today’s Gold Prices: USD1121, EUR 1,004.03  and GBP 734.75  per ounce.
Yesterday’s Gold Prices: USD1,125.00, EUR 1,009.87  and GBP 737.95  per ounce.

Gold in EUR – 1 Week

On Friday, gold ended with a loss of just 0.29% while silver ended with a loss of 0.75%. For the week, gold was 1.08% lower and silver was 0.07% lower.

Gold was marginally lower in gold trading in Singapore and this slight weakness continued to European trading with gold tethered to a remarkably tight $3 range between $1,123.70/oz and $1,120.50/oz.

Gold again outperformed embattled stock markets last week. The Dow Jones Industrial Average, S&P 500 and Nasdaq were down 3.25%, 3.4% and 3% respectively. Other indices were down by much more – the Nikkei plunged by over 7%. The stock falls follow a dire August which was the worst month for stocks in more than three years.


Gold inches higher as China returns – The Bullion Desk
Gold Trades Slightly Higher in Asia – The Wall Street Journal
Gold struggles near 2-1/2-week low on U.S. jobs data – Reuters
Gold Holds Near Lowest in Two Weeks as U.S. Jobless Rate Drops – Bloomberg
Global concerns may shrink Wall Street’s third-quarter estimates – Reuters


Father of the euro fears EU superstate by the back door – The Telegraph
Russia flirts with Saudi Arabia as OPEC pain deepens – The Telegraph
“System Is Highly Unstable—If [Confidence] Is Lost, It Can Melt Down Very Quickly” – Sprott Global
Get ready for a lousy September as investor sentiment slips – MarketWatch
The Frankenmarket Monster – MoneyWeek

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Father Of The Euro Fears EU Superstate By The Back Door (AEP)
UN Agencies ‘Broke And Failing’ In Face Of Ever-Growing Refugee Crisis (Guardian)
Europe Debates Migrant Quota Buyout Plan (FT)
Get Ready For A Real Lousy Month In The Stock Market (MarketWatch)
Forex Reserves Unwind Could Reverse Global Bond Supercycle (Reuters)
Capital Flight Now The Big Concern For Slowing China (FT)
China Freezes Outbound Investment Quotas as Outflows Hurt Yuan (Bloomberg)
China Revises Down 2014 GDP To 7.3% From 7.4% (CNBC, Reuters)
As Europe Grasps for Answers, More Migrants Flood Its Borders (NY Times)
Pope Francis Calls On European Parishes To House Up To 500,000 Refugees (WaPo)
‘If This Is Your Idea Of Europe, You Can Keep It’ (CNBC)
The Refugee Crisis Isn’t a ‘European Problem’ (Michael Ignatieff)
Refugee Flow Linked To Turkish Policy Shift (Kath.)
Hungarian Official Admits Campaign To Generate Hate Against Migrants (EurActiv)
Merkel Seeks $6.7 Billion for Refugees NEXT YEAR! (Bloomberg)
Greece Asks EU For Humanitarian Aid To Cope With Refugee Crisis (Reuters)
Statement By The President Of SYRIZA On The Refugees (Alexis Tsipras)
Tsipras Vows Battle To Improve Bailout After Greek Election (Reuters)
On The State Of The European Union (Yanis Varoufakis)
Greek Crisis Prompts A Rethink On Food Waste (AFP)

Read much more here: Debt Rattle September 7 2015 –