Martin Armstrong: The Debt Crisis Will Rotate from Europe to Japan to the US−We’re Past the Tipping Point – The US is the best house in a bad neighbor

Financial Sense
March 16, 2012

Jim welcomes back Martin Armstrong of Armstrong Econonics.com. Martin believes “capital knows something is wrong” and we’re past the tipping point of the debt crisis. He sees the crisis rotating from Europe to Japan and finally reaching the US, with devastating results. As to gold, he believes the best thing for gold would be a correction this year and a healthy period of consolidation, setting the stage for a launch higher as the debt crisis worsens.

ArmstrongEconomics.com offers a collection of research from Martin Armstrong, a world renown economist and the creator of the Economic Confidence Model, the author of the Greatest Bull Market in History, and founder of Princeton Economics. This web site is a resource to stay up to date on Martin Armstrong’s business accomplishments, legal battles, and views on the global economy.

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John Williams: Inflation Effect – Tough to Ignore or Contain

from King World News:

John Williams just warned that significant inflation will feed into the global system because of rising oil prices and the Fed’s policy to debase the dollar. Williams, who founded ShadowStats, also warned the US dollar will take a major hit because of global “dollar dumping.” Here is what Williams had to say about the situation: “With oil and gasoline prices pressured by market concerns over Middle Eastern political stability, monthly consumer inflation jumped in February and stabilized in the three-plus percentage range on a year-to-year basis.”

John Williams continues: Read More @ KingWorldNews.com

The Wrap with Ty Andros – Greek Servitude, S&P Breakout, Bond Bombs – 03-16-2012

from The Financial Survival Network:

Ty Andros of Traderview.com was here for our Friday special, The Wrap. There’s so much happening in the world right now that it is impossible to keep track of. Many of us just throw up our hands and just ignore. But ignore the world financial crisis at your own financial peril. Things are happening now that will have a tremendous affect upon you and your family. It is extremely important to get an accurate picture of the world financial chaos so that you can preserve your wealth and even increase it.

The banksters got paid by Greece, and everyone else wound up taking it the hard way. This cycle is going to be repeated over and over until there’s no one left standing. The precious metals are getting a lot of unwanted attention and selling pressure from parties who are, charitably termed, non-profit sellers, i.e. the elites. Don’t be deceived, you need to keep your core metal holdings safe. Ty recommends dumping cash and putting as much as possible into the precious metals. While this may seem a bit extreme, who out there predicted the financial crisis would reach the epic proportions that it has?

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IS the FED SELLING EUROPE’S GOLD DURING INTERVENTIONS, GOLD DIVE & WHAT’S NEXT – Jim Sinclair

King World News
Friday, March 16, 2012

CLICK ON PICTURE THEN CLICK ON MP3 TO LISTEN TO THIS EXCLUSIVE INTERVIEW

March 15, 2012

Today legendary trader and investor Jim Sinclair told King World News that a number of European countries are beginning to ask themselves where the gold is coming from which is being used for interventions in the gold market. Sinclair also said some European countries are beginning to think it’s their gold, stored by the US Fed, which is being used for these interventions. But first, here is what Sinclair had to say about the recent plunge in gold: “Eric, this has been going on since $248 in gold. Any idea or concern that this kind of intervention is going to cause the gold bull market to cease or shorten or even contain where it will potentially go is simply wrong.”

Jim Sinclair continues:

“Every time you intervene in any market or any time you intervene economically, it’s the same as using a controlled drug. The first application gives you the best high you’ll ever have. After that you have to do more and more just to near duplicate what you expected.

The selling down of the gold, what this means now is time….

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J.P. Morgan Chase's Ugly Family Secrets Revealed

In a story that should be getting lots of attention, American Banker has released an excellent and disturbing exposé of J.P. Morgan Chase's credit card services division, relying on multiple current and former Chase employees. One of them, Linda Almonte, is a whistleblower whom I've known since last September; I'm working on a recount of her story for my next book.

One of the things we were promised by the lawmakers who passed the Dodd-Frank reform bill a few years back is that this would be a new era for whistleblowers who come forward to tell the world about problems in our financial infrastructure. This story now looms as a test case for that proposition. American Banker reporter Jeff Horwitz did an outstanding job in this story detailing the sweeping irregularities in-house at Chase, but his very thoroughness means the news may have ramifications for Linda, which is why I'm urging people to pay attention to this story in the upcoming weeks.

The Cliff's Notes version of the story goes something like this: Late in 2009, Chase's credit card services division sold a parcel of nearly $200 million worth of credit card judgments to a debt collector at a discount. This common practice in the credit-card industry is a little like a bookie selling the outstanding debts of his delinquent gamblers to a leg-breaker for 25 cents on the dollar. If the leg-breaker gets half the delinquents to pay, the deal works out for both sides -- the bookie gets 25 percent of money he wasn't going to collect, and the leg-breaker makes a 100 percent profit. (more)

2012: The Beginning of The End, Full Movie, Lindsey Williams Oct 2011

This is the entire 3 DVD set by Lindsey Williams in one video. It is titled, "2012 The Beginning of The End." It was made available in October 2011. It is over 3 hours long. This video covers the following: What in this world is going on. Division among the Elite. The Dollar - Debt - Fear - Fuel in 2012. Why 2012 and not 2000. The Devils Messiah according to the Elite. Divine Manifestation. 2012 predictions from the Elite.

Egon von Greyerz: Gold Will React to the $120 Trillion of Additional Debt

from King World News:

Today Egon von Greyerz told King World News that global debt has increased 140% in the last ten years. Von Greyerz also said even though the massive creation of debt has yielded virtually no GDP growth, the gold market will soon react to the money printing binge. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Here is what von Greyerz had to say: “We are all focused on the short-term and that’s natural, but let’s step back and look at the longer-term picture because that is really what is important for us today and for the next few years. The bigger picture is so important because very few people understand that the last 100 years are exceptional in history.”

Egon von Greyerz continues: Read More @ KingWorldNews.com

Three in 10 young adults live with parents, highest level since 1950s

After graduating from Brown University in 2009 with a bachelor’s degree in comparative literature and completing a Fulbright scholarship in Brazil, Cassie Owens was left with a few dollars on her stipend and no job in sight. So, Ms. Owens returned home to her mother in Philadelphia.

“I moved back home pretty much for lack of money and prospects,” she says. Owens’s cousin, Evon Burton, who also returned home after graduating from Morehouse College in 2009, adds, “The choice is to go out and be in debt or to pursue your dreams and save up money at home, in a safe, stable environment.”

Owens and Burton are among the scores of so-called “boomerang kids,” young adults who move out of the family home for school or work and then return home. Unable to find well-paying work in a weak economy, escalating numbers of young adults – as many as 3 in 10 – are returning home to the family nest, resulting in the highest share of young adults living in multigenerational households since the 1950s, according to a Pew Research Center report released Thursday. (more)

What Closing The Straits Of Hormuz Will Mean

While WTI hovers around $105.5 (slightly underperforming USD strength), Brent has notably outperformed with the Brent-WTI spread now edging towards $20 (from under $15 two weeks ago). Given the increasing tension, we thought it useful to get a grasp of just what an oil-supply shock means. BNP points out that in all but one of the historical oil price shocks of the last 40 years, equities have notably underperformed oil (understandably) but the higher the oil price rise, the higher the chance of negative absolute returns for stocks. We also note that oil prices tend to rise in anticipation of the crisis and then explode (so arguing that we are discounting an event is proved moot) and the impact (in lost supply) from closing the Straits of Hormuz is an order of magnitude larger than the next five largest events. Regionally, positioning favors the middle-eastern oil producers obviously with Asian EM nations set to suffer dramatically worse than DMs.

Global Oil Supply Shocks...

According to the IEA, 24% of the Global oil consumption passes through that strait. If tensions in Iran increases and this possibility becomes a reality then that would lead to a big tail event.

A further spike of 20% in the oil price will be a serious threat to the global economy and we believe in that scenario the equity prices will quickly decouple from the oil prices as we show above in retrospect to the previous oil price shocks.

Oil Price Action During Periods Of Shock...

And how to position regionally: Oil Consumption Minus Production As % of GDP...

Crucially the stage is not yet completely set for demand crushing oil spike although current levels will already be sufficient to drive sector rotation.

Source: BNP Paribas