Goldtent TA Paradise

Great article

1. Bikoo99 says:

   December 28, 2019 - 6:54 am at 6:54 am

   Yep!

   Lot of words and Hypes. Read these for last 10 years. Not financial indicators or technical info.

   U must have missed this post with tech indicators charts whats coming. Same forecast but with current data.

   https://goldtadise.com/?p=453166#comments

2. Fullgoldcrown says:

   December 28, 2019 - 10:04 am at 10:04 am

   Thanks Aurum Maximus

   This is an article on the Subject which even I can mostly understand.

   I love the term Repocalypse.

   I still have my Y2K cans of tuna ….but its past its best before date.

   Maybe I will go get a few more cases…just in case !

   Are you all going to the ATM this morning ?

   See you there

   🙂

3. Aurum Maximus says:

   December 28, 2019 - 2:40 pm at 2:40 pm

   Hi Bikoo, yes I saw your post, thanks. I enjoyed this article and I’ve read nothing like this in the last 20 years. Not even around the 2008 crisis. This is completely different shell game but same old con. I found the article interesting regardless of there not being any charts etc. If QE to Infinity is announced soon this article is explaining the why.

4. Steins1 says:

   December 28, 2019 - 3:53 pm at 3:53 pm

   I sent this article to my friend Carl who I copy here sometimes, his reply:

   There are multiple issues emerging that will eventually be headline material in the 2020’s. One is that China and India are backing away from their commitments to reducing the use of hydrocarbons. Another is that the banking system is exhibiting early signs that something is seriously wrong. The Repo markets have emerged as being the canary in the coal mine. It is interesting that even with low interest rates banks are having problems with short term liquidity forcing the Federal Reserve to come to the rescue. The following article about the repo markets provides better background about illiquidity in the banking community. Combining short term liquidity issues in banks with the highest amounts of debt held by consumers, corporations and governments the making of a credit crisis is anywhere from a few weeks to a few years away. Add into the mix the inability of the United States to pay its bills without devaluing the dollar massively if creditors start demanding the U.S. Treasury pay off its debt in large amounts, a manufacturing recession that is in full swing right now, the ongoing destruction of the environment, a declining infrastructure in the U.S. with little ability to pay for its restoration, an aging population and declining birthrate, a bloated stock market that is in the greatest valuation bubble in history, the destruction of low paying jobs by artificial intelligence and robotics—-its just not looking good for the 2020’s. Its impossible to know which problem will emerge first, they are all in various stages of development lurking in the background.

   The ongoing stock market rally is a continuation of low interest rates forcing institutional investors to buy stocks as they try to offset loss of income in dividends and interests. Yield chasers abound, willing to buy high risk securities that will become very illiquid suddenly as soon as the first sign of trouble emerges that everyone can see. Now the problems are not in the headlines, as long as stocks continue to increase in value. Rising stock prices have become a form of wearing blinders. Who cares about problems lurking in the background as long as stock prices keep going up?

   If the problems associated with debt and what is happening in the repo market become a driving force in the psychic of investors and traders, the downside to the market is far higher than most believe possible. When computers decide to move to the sell side instead of the buy side it’s a rush to the gate and attempts to short stock in large amounts. The mantra goes from buy the dips to sell the rallies. Computer programs will be redesigned to respond to a bear market instead of a bull market.

   My belief is that there is only one presidential candidate that has any chance of understanding the problems associated with debt, illiquidity, lack of transparency in the banking sector, the potential default of a bank like Deutsch Bank, and the impact of new emerging technologies on employment and he is Michael Bloomberg. Every other candidate ultimately is talking about expanding spending for the military, education, medical care or other problems that are feel good solutions to very complex issues. Bloomberg has worked in the bond markets and understands how the banking system works. He may have half of a chance of helping create a strategy to manage the impact of a liquidity crises on the world economy.

   However Bloomberg is not the charismatic candidate that inspires Democrats. Democrats historically like candidates who provide emotional support in an environment confronting deeply distressing problems. They support programs that support those in need. And successful business individuals are demonized for their wealth. To the extreme left wing of the Democrats, the bad guys are now billionaires. Decades ago the bad guys were millionaires. Now however there are many Democrats who are millionaires, many of whom made their money via political avenues including Obama, Sanders and Warren. Of course a million dollars is no where close to what it used to be. A health care crisis can quickly consume over a million dollars.

   I am not hopeful. I doubt if Bloomberg can win the nomination. He can only win if he is able pick up the pieces of Sanders, Warren, Biden and Buttigieg as they divide up their supporters. However that is how Trump won the nomination, he allowed the field to pick off each other and he was the last man standing. If Warren or Sanders become the nominee its doomsday for the Democrats. They could never beat Trump or a ticket like Trump and Haley. Bloomberg stands up against Trump on all of the issues. He is one of the most successful if not most successful business man and job creator of the last 40 years. He revolutionized the securities industry by creating transparency making data available to everyone willing to pay for it. He has given away hundreds of millions of dollars without selling stock in his company to raise the money. He has also been the largest donor to fighting the NRA and has been fighting for the environmental health of the planet for decades. Trump can not make any of those claims. Just comparing Bloomberg’s philanthropy with Trump who claims to be a billionaire without sharing his tax returns to prove it, is clear evidence of Bloomberg’s success. For whatever reason, American voters are now interested in supporting someone with a recognizable name that can be associated with previous success.

   But again, the Democrats want someone who is making FDR like promises of expanding programs that can never past the muster of how they are paid for. While Sanders and Warren have good intent, the possible emerging problems that the country face will make it impossible to fund any new programs in the future. The asset base of so called billionaires will collapse if the stock market declines or the economy begins to shrink in the sector that remains strong, the services sector. As people, corporations and governments suddenly are faced with paying off debt free cash flow for buying “things” will decline rapidly. Remember it only took a couple of years from 2006 to 2009 to go from an economy creating over 100,000 jobs a month to losing 250,000 jobs a month. Don’t think it cannot happen again. It can and it could be even worse. If Sanders or Warren were president they would be focused on expanding government programs instead of creating programs that stimulate job creation. Obama and the Democrats in 2009 became focused on creating Obamacare instead of job creation and that cost them the Congressional election in 2010.

   If the Federal Reserve had not financed the re liquefying of the banking system by lowering interest rates and rescuing the banking system we would still be in a massive recession or depression. But now the Federal Reserve has few options left to try and stimulate the economy—the cost of money is at an all time low. The economy has been stimulated and re-stimulated as the Fed kept making money available to prevent a slow-down. To put it simply the Federal Reserve cannot stimulate the economy any further other than possibly preventing out right collapse like it has been doing in the repo market. When the next crisis emerges, there will be little either the U.S. government or the Federal Reserve can do to fight it.

   Carl

5. Aurum Maximus says:

   December 28, 2019 - 5:16 pm at 5:16 pm

   Good information from Carl, appreciate you posting, please thank him for us.

   • Steins1 says:

     December 28, 2019 - 6:47 pm at 6:47 pm

     Will do…Thx

6. Alfa8 says:

   December 28, 2019 - 8:30 pm at 8:30 pm

   I totally agree with his comments on Bloomberg. And maybe he could pick up the pieces to get nominated… strange things happen in conventions.