The Oil and USD Continue To Rally
Crude oil is trading above $70/barrel while the USD came very close to breaking above 93 int he early hours of today. Especially with oil the uptrend impacts a wide range of sectors some of which are unable to pass the higher costs on to consumers. Chris Temple joins me to discuss what is helping support this uptrend in oil and some of the risks of that may slow the rally.
Click download link to listen on this device: Download Show
Click here to visit Chris’s site for more market and stock commentary.
Thanks for posting. I agree. This country is just a former shell of a country we used to call america.
Yup. And Trump will put sanctions on Iran and is committed to regime change in Iran accordng to Ghoulianni. All you tax serfs better get back to work. After all, your gooberment is 21 trillion in debt with hundreds of trillions of unfunded liabilities and now producing deficits in excess of a trillion a year. And now an expensive war.
Ah, but I have it all wrong. Trump is playing 4D chess…more like
SDR crypto currency to save the world?
This Billionaire Has Put Half His Net Worth Into Gold
Some big investors see warning signs ahead for markets but are holding their positions. Egyptian billionaire Naguib Sawiris is taking action: He’s put half of his $5.7 billion net worth into gold.
Unfortunately it turned out not to be true. He actually has most of it in gold related products, like mining shares and probably ETFs, and not in physical gold. And he already had over $1.5 billion of it in last year. He is just adding some more to it.
Has the Dollar Turned? – Armstrong
QUESTION: You models called for a rally in the pound sterling into April and it seems like that is spot on. We did bound off of the 144 level. In your year-end report, you said the resistance in the pound for 2018 was at the 14500-14600 level throughout 2018. Living here in Britain, I really get a laugh out of these people who keep saying the dollar is in a bear market forever. They are clueless about what is going on outside the United States. I know you are not, but the view of Americans from across the pond is they are ignorant of anything outside the States particularly the Goldbugs who are notoriously wrong for decades. So has this begun to turn?
PHN
ANSWER: Granted, there are a lot of Americans who see the world only in dollars and the United States. They usually hate my guts because they have been wrong. Yes, we came close to the resistance level, but we still did not reach it. This is part of the consolidation period that was broader than just the stock market. Capital as a whole has been confused and trying to figure out which direction everything is going.
Gold has run up and then runs down. It too has been unable to breakout out. This is yet another confirmation of the entire overall consolidation pattern our computer saw for early 2018.
People have to get their head around interest rates. Will rising rates be bearish for stocks, bonds, and everything else? So much opinion and propaganda have been spilled out for decades that people cannot see clearly.
In the pound, we elected 3 of the four Weekly Bullish Reversals – not the fourth. We elected only ONE Monthly Bullish at the next one stands at 14775 level, which we have been unable to reach. So how anyone can claim that the dollar is in some long-term bear market is just bias because that is what they WANT to believe usually so their gold will rise. They seem to be the only people who refuse to open their eyes and just peek at the other markets and political trends outside the USA.
They will never be able to survive what is on the horizon because they are too biased to be objective. They cannot even understand that a weak dollar helps everything and a strong dollar creates the deflation and collapse in debt.
Greece got in trouble BECAUSE they joined the Euro, the Euro then doubled in value and their previous national debt then cost twice as much deal with. Hello? Why can’t they get this through their heads? Probably because their mortgages are in dollars. In Canada, Europe, Australia, they alone understand when you borrow in a foreign currency, and the currency rises, you lose money.
I Helped some of the takeover boys during the 1980s to converting debt into a PERFORMING asset. We would borrow in a currency that would depreciate against the asset. We made more money on the currency than on the asset. Such things are just over their heads.
https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/pound/has-the-dollar-turned/
AMK TUD TUO PVG SEA American Creek Online Presentation
American Creek has received important geophysical data concerning Treaty Creek. We will be doing some 20 minute online presentations to cover how this new insight relates to our neighbours Seabridge and Pretium, to last year’s successful drill program, to drilling in 2018, and finally to the KSM tunnels proposed to run through Treaty Creek.
Monday May 7th (today) – Two presentations
PST MST CST EST
6:00PM 7:00PM 8:00PM 9:00PM
7:00PM 8:00PM 9:00PM 10:00PM
Tuesday May 8th (tomorrow) – Two presentations
PST MST CST EST
9:00AM 10:00AM 11:00AM 12:00PM
12:00PM 1:00PM 2:00PM 3:00PM
Feel free to invite others. We ask that you call or email us to let us know what meeting you’re attending. We will send you a link to click on to join us online.
Please use the contact information below. We look forward to seeing you soon. Kelvin Burton info@americancreek.com
Can US Russian Sanctions Start A Financial Crisis? – Armstrong
The US sanctions against Russia are pointless and are placing the West at risk the politicians are too stupid to even comprehend. Already, some Russian companies have asked the government for liquidity injections of up to $2 billion. Even the world’s second-largest aluminum producer Rusal has asked for help. Nevertheless, the impact of sanctions goes beyond the internal borders of Russia for they also impact the international financial markets.
For example, Rusal had previously made clear that the US sanctions are threatening their ability to even meet debt obligations. They carry $7.7 billion of debt in US dollars of which about $1 billion in debt is maturing within five years. In terms of US dollars, Rusal cannot even pay the debts because it would have to do so through US banks. That means, under the sanctions, they would have to default on their bonds. Now let’s turn to Polyus, which is Russia’s largest gold producer. Here they have also $5 billion in US debt. Those US dollar bonds maturing in 2024. doubles as sanctions become known.
The same story applies to many Russian companies for they still have to conduct business in US dollars regardless of the sanctions. For example, let’s look closer at Rusal. Here the company conducts over 60% of all its business in US dollars. The US sanctions prohibit Americans from doing business with the affected Russian companies or individuals. This is really crazy. Any Russian state-controlled bank cannot step in as an intermediate because they could then become the target of sanctions itself.
Western investors are actually the ones who will be punished by the US sanctions if the Russian companies cannot pay their debts under the law. They cannot even go to an intermediary in Europe for they too could then be targeted by the US for violating the sanctions. The US sanctions would actually justify Russian defaults on all their debt. Will the US then bail out the Western bondholders?
This may end up simply as a 1931 event where one default starts a panic and the entire house of cards comes crashing down.
Is the Vertical Market Over or Just Beginning? – Armstrong
QUESTION: Thanks for the update. So it looks like the Vertical Market in the Dow will extend into the end of this cycle 2032 as you warned it could do. Correct?
EK
ANSWER: It appears to be shaping up that way. The consolidation has been shallow and nothing to get excited about. If the January high was it, then you should have made a major thrust downward by now certainly electing Monthly Bearish Reversal within the first three months. To judge the extent of a potential decline, the key is to watch HOW FAST does a market elect Monthly Bearish Reversals or Bullish for that matter. This is how to gauge the tone of a market. If we look at 1929, it elected the first TWO Monthly Bearish Reversals in just one month from the high. That was obviously a signal that this was going to be a protracted decline of MAJOR importance. continued…
Look for a false flag operation or another attack on Syria this week on the part of Israel. Israel, a country of 8 million people, wants the world to believe they can take on Iran, a country of 80 million people. They cannot. So they are doing everything in their power to drag the US into another wasted war on behalf of Israel that Israel intends to fight to the last drop of American blood and last cent in the treasury.
For those who lack the ability to reason and see what is happening, here is an interesting paper from another source.
http://www.unz.com/tsaker/the-warmakers/
The Israelis are at it again
Amazing, isn’t it? The Israelis have been whining about “imminent” Iranian nukes for years, and they are still at it. Not only that, but these guys have the nerve to say “Iran lied”. Seriously, even by the already unique Israeli standards, that is chutzpah elevated to a truly stratospheric level. If it were just Bibi Netanyahu, then this would be comical. But the problem is that Israel has now fully subjugated all the branches of the US government to its agents (the Neocons) and that they now run everything: from the two branches of the Uniparty to Congress, to the media and, now that Trump has abjectly caved in to all their demands, they also run the White House. They apparently also run the CIA, but there still might be some resistance to their lunacy in the Pentagon. The US is now quite literally run by a Zionist Occupation Government, no doubt about it whatsoever.