Deutsche Bank Collapse: The Most Important Bank In Europe Is Facing A Major ‘Liquidity Event’

The largest and most important bank in the largest and most important economy in Europe is imploding right in front of our eyes.  Deutsche Bank is the 11th biggest bank on the entire planet, and due to the enormous exposure to derivatives that it has, it has been called “the world’s most dangerous bank“.  Over the past year, I have repeatedly warned that Deutsche Bank is heading for disaster and is a likely candidate to be “the next Lehman Brothers”.  If you would like to review, you can do so here, here and here.  On September 16th, the Wall Street […]

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How Deutsche Bank Could Take Down Germany

The first bad news broke following the third quarter of 2015. Deutsche Bank reported a loss of $ 7 billion. The news just keeps coming with low or negative earnings thanks to bad loans in Germany and abroad. In my February 19, 2016 edition of The Leading Edge, I issued a clear and stern warning about Deutsche Bank and about a second banking crisis looming. I explicitly said… The Telegraph ran an article yesterday asking if Deutsche was the next Lehman. Is there an echo in the room? Without a doubt, things are coming to a head at the bank. […]

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“Public Recognition” Year of Gold and Silver

In all probability, December 2015 marked the bottom of the cyclical gold and silver bear market – a bear cycle that had been in play since silver topped in May 2011 and gold in September of the same year. During the fourth quarter 2015, share price declines of the precious metals mining companies tapered off once the last of the weak hands gave up and sold their positions to stronger, forward-looking investors. Endeavour Silver Weekly Chart If you go to a free chart service like stockcharts.com, you can choose any number of mining stocks and look at their January 19 […]

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How Constant Is Gold’s Purchasing Power?

BullionStar An often-perceived analysis in the gold community is that gold is the constant in our global economy. But is this true? Yes and no. Allow me to share my observations. Although gold has an exceptionally constant nature, and we have yet to see another currency that can compete with gold’s constant nature, the reality is, that there is no exact constant in economics. In any market all goods, assets, currencies, etc. continuously fluctuate in value relative to each other due to ever changing supply and demand dynamics. Having said that, in this post we’ll examine gold’s constant nature by […]

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Scams and Fantasies – An Even Dozen

Steve Saville: “…there is no limit to how much new money the central bank can create.” The Federal Reserve – the central bank of the United States – issued over $ 16 trillion in loans, swaps, guarantees and more following the 2008 financial crisis. They also increased their balance sheet by nearly $ 4 trillion – thanks to their (digital) printing press. Much of that newly created currency was used to purchase dodgy bank debt that was worth little. “Money from nothing” is their specialty and they used it to “stimulate” the economy, a fantasy. The ECB and BOJ indulged […]

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Income was Too Good to be True

The Census Bureau reported that median income jumped 5.2% last year. As I pointed out last week, that’s a solid increase, but still leaves us short of the record in 1999. Still, something about the gains struck me as wrong. Even with cities, states, and some businesses bumping up their minimum wage, 5.2% seemed like a lot. So I went digging. And the more I dug, the more disappointed and frustrated I became. As usual, the source of my angst was the federal government. Long-time readers know my ongoing annoyance with the Bureau of Labor Statistics (BLS) when it comes […]

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IMF Plans to Launch a New Global Currency

Some say the U.S. dollar may die 5 days hence. The Chinese renminbi will kill it. Much is being made of plans by the International Monetary Fund (IMF) to add the renminbi to its basket of strategic reserve currencies called Special Drawing Rights (SDR). The IMF will make the change on October 1. While the implications for the Federal Reserve Note, currently the U.S. dollar, as the world’s primary reserve currency may be profound over time and the importance of this even should not be overlooked, the impact is unlikely to happen overnight. The composition of the SDR may change […]

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The 5 Best Books On Economic History For Global Macro Trading & Investing

If your goal is to become a master global macro trader or investor, then you need to become a devout student of economic history. The books below cover various episodes of credit driven speculation throughout history. Studying these instances will show you that humans tend to repeat similar periods of economic delusion time and time again. This knowledge will help you stand apart from the crowd and form profitable “smart contrarian” opinions that will put you ahead of the game. 1.  Ray Dalio’s “How The Economic Machine Works” Ray Dalio is the founder of Bridgewater Associates — the #1 most […]

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Get Ready to Ignore November

As I’m writing this, the Mexican peso has rolled over and died. And what caused the currency to stumble like a drunken borracho who had one too many shots of tequila? Bloomberg released a poll that showed Donald Trump leading Hillary Clinton in Ohio, a critical battleground state, and The Donald’s relationship with Mexico is… shall we say… complicado. Over the past several months, the peso’s fortunes have waxed and waned with Trump’s polling numbers. The thinking is that a Trump America would be less open to free trade… and America is Mexico’s most important trading partner. So a Trump […]

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26 Incredible Facts About The Economy That Every American Should Know For The Trump-Clinton Debate

Are you ready for the most anticipated presidential debate in decades?  It is being projected that Monday’s debate between Donald Trump and Hillary Clinton could potentially break the all-time record of 80 million viewers that watched Ronald Reagan and Jimmy Carter debate back in 1980.  Many Americans probably hope to see some personal fireworks between the two nominees, but the two candidates have both expressed a desire to focus on substantive issues.  There will likely be quite a few questions about the economy, and without a doubt this is an area where Trump and Clinton have some very sharp differences.  […]

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