It’s Black Monday, August 24, 2015: Andy Hoffman from Miles Franklin joins us to recap the 1,000+ plummet in the DOW at the market open and the “sheer horror” of what is to come.
Andy breaks it down in this way, “There is nothing ‘flash crash’ about this morning, this is called an overwhelming supply of sell orders at the open as people are terrified for their financial lives as they should be. Because this is just the beginning. Unless they hyperinflate it (the stock market) which is very possible, look what’s going on in Venezuela, we are going to revisit the 2008-2009 lows without a question. So this is not “flash crashing”, this is terrified panic as it should be.”
Meanwhile John Williams from Shadowstats is out with the latest CPI inflation adjusted numbers for silver – and the 1980 inflation adjusted all time high for silver is now $601 per ounce. Got PHYSICAL?
Although entities in mainland China remained the largest foreign owners of U.S. government debt, according to the latest data published by the U.S. Treasury Department (which ran through the end of June), Chinese ownership of U.S. government debt peaked in November 2013.
However, that was down $45,500,000,000 from the approximately $1,316,700,000,000 in U.S. Treasury securities the mainland Chinese owned at the end of November 2013, when Chinese holdings of U.S. government debt peaked.
Unlike the Confederate flag, leftists aren’t calling for a ban of the gay flag linked to WDBJ shooter Vester Lee Flanagan.
Police reportedly confiscated a gay pride flag from Flanagan’s apartment on Wednesday, but in an example of hypocrisy, this hasn’t sparked outrage from liberals who wanted to ban the Confederate flag due to its association with Charleston, S.C. church shooter Dylann Roof. “Libs got the Confederate flag taken down in South Carolina,” blogger Dave Blount pointed out. “They have imposed a de facto ban throughout the country through their control of major retailers like Walmart, Amazon, eBay, Sears, etc.”
“The show The Dukes of Hazard has been taken off the air because it features the flag on the roof of a car.”
What we’ve seen today and over the course of this week is signaling that we may have put in the blowout low in the oil price. We’ve been focused on whether this pattern was like 1986 or 1998.
The current action makes it look much more like 1998, and if that is the case then we should be putting in the low here. And if one looks back historically, it would be quite credible that we could see the oil price surge back to the $62.50 level and possibly even higher if we break decisively above that level.
Oddly enough, this pattern looks very similar to what we saw back in 1998. Both the weekly and the monthly moving average setups that we see today are very similar to what we saw back then.
I often emphasize that your energy output coupled with your ability to adapt to the situation at hand will play a big part in how successful you are at living in a primitive setting. One of your first concerns in surviving outdoors is finding shelter. Short-term shelters are easy to construct an will serve you well in an immediate survival situation but may not last long-term. That said, if you are looking for more solid constructs, this is the video you want to watch.
If you find yourself in a long-term situation where you must shelter in the wild, you must find resources and materials that will serve the purpose of surviving the elements. Though time consuming, if left to our own devices, it is possible survive the elements. All that is needed is where to find the supplies for a shelter and the ingenuity of how to make it. Using naturally occurring materials, this video shows that sheltering in the wild is possible. This daub hut can be made solely from items found in nature.
The next time you throw a thick, juicy burger on the grill, keep this in mind: almost all ground beef on the market is contaminated with dangerous fecal matter. The news comes as researchers find horse meat and other undeclared species in products labeled ‘ground beef.’
Thank Consumer Reports for this stomach-turning piece of news. Their investigators recently gathered 300 packages containing 458 pounds of ground beef purchased at stores in 26 cities and found that every single one contained fecal contamination.
The size of the epic RMB carry trade could be as high as $1.1 trillion. If China were to liquidate $1 trillion in reserves (i.e. USTs) in order to stabilize the yuan in the face of the carry unwind, it would effectively offset 60% of QE3 and put around 200 bps of upward pressure on 10Y yields. So in effect, China’s UST dumping is QE in reverse – and on a massive scale.
The dramatic collapse of the Shanghai stock exchange has been presented to public opinion as the result of a spontaneous “market mechanism”, triggered by weaknesses in China’s economy.
The Western media consensus in chorus (WSJ, Bloomberg, Financial Times) portend that Chinese stocks tumbled due to “uncertainty” in response to recent data “suggesting a downturn in the world’s second-largest economy”.
This interpretation is erroneous. It distorts the workings of stock markets which are the object of routine speculative operations. An engineered decline in the Dow Jones, for instance, can be precipitated in various ways: e.g. short selling, betting on the decline of the Dow Jones Industrial Average in the options market, etc.