Japan should serve as a lesson to central planners around the world.

Japan’s stock market/ real estate bubble burst in the early ‘90s. Since that time Japan has launched NINE QE efforts equal to roughly 25% of its GDP. And GDP growth has worsened despite these efforts from 2% to 1%. Ditto for employment.

Japan elected a new Prime Minister Shinzo Abe in September 2012. Since that time, his primary belief has been that Japan hasn’t engaged in enough stimulus. He threatened the Bank of Japan to get working… and it did, announcing a $1.4 trillion stimulus last month.

Since that time, the Yen has positively imploded. It broke below 100 yesterday for the first time in years. It’s now fast approaching the long-term trend line. When we take this out, it’s GAME OVER for the great monetary experiment of Japan.

Japan has a Debt to GDP of over 200%. Japan’s demographics are terrible (the country sells more adult diapers than child diapers). Its economy has been imploding for 20 years, and now its truly epic bond bubble is on the verge of collapse as well.

If you thought Greece was bad for the financial system, wait until you see what Japan will do to it.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

Stocks are officially in a blow-off top.

This is the culmination of Bernanke’s life’s work. In his mind he has succeeded in saving capitalism by spending trillions of Dollars pushing stocks higher.

It doesn’t matter that the US hasn’t experienced 3% GDP growth a SINGLE year since he took the Fed. It doesn’t matter that the employment ratio is at levels last seen back in the early ‘80s. It doesn’t matter that there are now a record number of Americans on food stamps.

All that matters is that stocks are up. That equals a recovery for the Fed.

This whole mess is sad really. Having seen two bubbles burst in the last 13 years, we all know how this ends: in disaster. And each time the disaster has been bigger. Indeed, the 2008 collapse was a far worse thing than the Tech Crash.

And what’s coming will be even worse than 2008. This time around, entire countries will go bust, not just banks.

On top of this, when this bubble bursts, interest rates will already be at zero and the Fed’s balance sheet swollen with garbage debts. The Fed and other Central Banks WON’T have the usual tools available to save the day.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

Stocks are now beyond overbought. The market ramped on Tuesday (the 17^th straight Tuesday rally by the way) because traders are now playing for Tuesday rallies.

The financial media is looking for any and all reasons to justify the move, but the fact is that the market had rallied for 16 straight Tuesdays before… so why not a 17^th time?

Behind this backdrop things only worsen. The divergence between stocks and the economy is growing rapidly. Stocks are now over 4% above their 50-DMAs. Anytime stocks have been this far above their 50-DMAs in the last four years we’ve seen a correction:

The overbought nature of the market is even more obvious when you compare the S&P 500 to its 200-DMA:

It is clear now we are in something of a blow off top. How long it will last is anyone’s guess, but investors are far too bullish given the fundamentals. The long, “risk on” trade is so lopsided it’s not even funny.

Maybe this time is different… maybe stocks will only go straight up forever. Maybe this bubble, unlike the last two, will not burst.

Or maybe it’s time to start prepping for the next stock collapse.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The market is beyond overstretched at this point on a short-term, intermediate term, and long-term basis. The sheer number of warning signals is staggering.

The blow off top out of the rising wedge pattern we noted before is rolling over indicating this is likely a false breakout:

The Russell 2000 is lagging well behind the S&P 500. Small caps, in general, should lead a rally if it’s going to prove legit:

China, which has lead the S&P 500 in general since the 2009 bottom peaked months ago:

Copper, which serves as an excellent proxy for the global economy, is collapsing, showing that this rally in stocks is occurring while the global economy gets weaker and weaker.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The media is jumping for joy over last week’s US jobs numbers. But beneath the veneer of headline numbers lies a truly horrible economic reality.

Let’s have a look at the two key economies for the world: China and the US.

For starters, China’s recent economic data, as massaged as it is to the upside, is downright awful. China’s PMI numbers were the worst in two years. Staffing levels in the Chinese service sector decreased for the first time since January 2009 (remember that year).

China’s LEI also shows no sign of recovery. If anything, it indicates China is heading towards an economic slowdown on par with that of 2008. And if you account for the rampant debt fueling China’s economy you could easily argue that China is posting 0% GDP growth today.

In the US, last week’s jobs report didn’t look too bad until you dug deeper into the report and found that the average workweek declined by 0.2 hours from March- April.

So what you may ask… 0.2 hours? Just under a 15 minutes per week?

The issue here is that if you apply this drop to the total number of people employed in the private sector, this is the equivalent of over 21 million work hours being lost in one month.

That is the single biggest drop since April of 2009 when the US economy was absolutely imploding. It’s the numerical equivalent of firing 718,000+ people.

This is how companies deal with economic contractions. They don’t start laying people off en masse… they start cutting work hours bit by bit. The mass layoffs don’t come until the official numbers announce that we’re in a full-blown recession.

The first stage of this is already happening. 99% of investors fail to see it, but the clear signs are there.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The Fed is now blaming Congress for the failures of its QE policies.

This is to be expected, given that no one in the power elite ever accepts responsibility for their own failures. Congressional members blames each other (depending on which party they’re in), the Fed blames Congress, the White House blames the GOP, and on and on.

Behind this façade of bickering is the total and complete failure of the Fed’s policies to generate economic growth OR jobs. Regarding #1, the US has not had a single year of 3% GDP growth since Bernanke became Fed Chairman. End of story.

As for QE… there is not one single example in history in which QE has successfully created jobs. The UK has engaged in QE equal to over 20% of its GDP and hasn’t seen a real recovery in employment. Similarly, Japan has employed QE equal to nearly 25% of its GDP and GDP growth continues to slow while unemployment stays elevated.

As for the US, the Fed has spent roughly $2 trillion in the last year via QE. During that time a little over, 500,000 jobs were created… So the Fed is spending roughly half a MILLION dollars to create each job.

There’s a word for this… it’s pathetic. Actually “insane” would be a better choice. This is what happens when you put Central Planners who have little if any real world experience, in charge of an economy. You spend millions of dollars to create low paying jobs.

And the Fed’s argument is to keep doing this until unemployment falls.

The fact that the Fed continues to engage in QE despite its clear failure to create jobs indicates the Fed literally is either totally clueless OR is engaging in QE for other reasons.

My view… it’s a bit of both. The Fed is largely comprised of academics like Bernanke who have little if any experience in banking (interesting that he’s in charge of the Central bank since he NEVER worked in a bank in his life) or the private sector.

Indeed, even the pro-Wall Street crowd at the Fed (Dudley and Evans) don’t see how their policies are crushing the banking sector. Citigroup plans to lay off 11,000. JP Morgan is laying off 14,000. Morgan Stanley is laying off 1,600.

And yet the Evans and Dudley keep asking for more QE!

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard. And it’s clear the Fed doesn’t know how to get things back on track.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The Fed meets today and tomorrow. The ECB meets on Thursday. Those will be the defining market forces for the next three trading sessions.

There is little if any point in trying to trade this week (at least until Thursday). The Fed is notorious for leaking info to the well-connected. The most recent “accidental” sending of a report a day early is just the latest example.

In simple terms, the market will be even more of an insider’s game today and tomorrow than usual. No point trying to open a new position in that window.

However, against this backdrop the big picture for the markets is growing worse and worse.

The US is almost assuredly back in recessionary territory. This is coming on the back of the weakest recovery (if you can call it that) in post-WWII history.

The Feds hide this economic nightmare by simply not counting those who are unemployed (lower the denominator in the fraction and your unemployment ratio falls), and by using bogus deflators in their GDP growth numbers (the current CPI is 2.1%… but the Feds calculated the first quarter GDP growth numbers use an inflationary measure of 1.2%).

Change your measurements and BOOM you’ve got a recovery. It works if you’re a Government bean counter trying to keep your job. It doesn’t work so well for everyone else.

However, there are clear signs we’re heading back into recessionary territory. I think the first quarter 2013 GDP growth print is the best we’ll see all year. And it’s very possibly things will get ugly before the year ends.

Speaking of which…

Ben Bernanke has announced he won’t be attending this year’s Jackson Hole meeting. A Jackson Hole meeting without the Fed Chairman is like having a performance of Hamlet without Hamlet himself in it. Why would the single most important Central Banker not attend one of the biggest economic meetings of the year?

He claims it’s due to scheduling conflicts. As if he didn’t know about this meeting in advance.

The fact is Bernanke is likely going to step down at the end of this term in January 2014… which means the markets will be losing one of their biggest props, the famed Bernanke Put.

God help whoever fills the role in the future. Assuming things hold together until next year (a BIG assumption) the new Fed Chairman will be inheriting one of the worst messes in history.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The markets are holding up based on hope for more stimulus from the Fed and ECB this week (Fed FOMC is Tuesday and Wednesday, the ECB meeting is on Thursday).

This is a very dangerous environment. We are entering the seasonal period in which stocks typically do poorly (May-November). Earnings guidance is falling. And even the massaged GDP number for 1Q13 was lower than expected.

In simple terms, we are getting multiple signs that the economy is slowing and heading towards recessionary territory. This is happening at the precise time that stocks are holding up on hopes of more stimulus.

The rising bearish wedge pattern in the S&P 500 that we noted last week remains in play. It should be resolved this week. However, multiple economic bellweathers are already warning DANGER DANGER!

Below is a price performance chart for the S&P 500 against Fed EX (postage and shipping), Arcelor Mittal (steel), and Caterpillar (machinery). As you can see, the real economy is falling. But stocks keep holding up.

We’ve seen this kind of divergence between stocks and the economy before in 2008. We all know how that ended.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

For the last four years, the financial world has traded largely based on hope of more intervention from Central Banks.

That was and is the single driving factor of the markets. Good news was good news (it’s a recovery!) but bad news was even better (the Fed will have to print more money!) as far as stocks were concerned.

However, against this backdrop several issues began to develop. The single most important one was Copper, which has a great record of anticipating real economic growth:

Note that Copper signified an end to the economic “recovery” story back in 2011. Since that time, it’s been in decline. In fact, it’s just taken out its “recovery’ trendline dating back to 2009.

This signifies that the world economy is slowing. It tells us point blank that things are not well in the world.

Just as importantly, it shows that the claims that QE and Central Bank money printing generate real economic growth are false.

Copper can’t fudge statistics to meet political agendas. It doesn’t lie under oath. It moves based on supply and demand. And demand has been falling since 2011.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Copper is forecasting a nasty summer.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

Since 2011, the Fed and other global Central Banks have injected over $2 trillion into the financial system. They’ve also announced plans to continue pumping money ad infinitum.

And yet for the period from 2011 until two weeks ago Gold, the inflation hedge of choice for investors, hasn’t done much of anything.

Why is this?

Part of it has to do with simple sentiment. Gold was overextended in 2011, stretched far away from its primary trendline:

On top of this, investors had gone too carried away on expectations of more Fed liquidity. QE 2, which was announced November 2010, was a mere $600 billion (not much compared to the Fed’s current programs which will extend forever). But yet Gold rose like a rocket ship starting in August when the Fed first hinted at QE 2.

Which brings us to today. This excessive enthusiasm needed to cool and Gold has done just that for the last two years. Then the Gold Crash happened and were right back at the long-term trendline.

The is the key area to watch. If Gold continues to correct, then we could go to $1200. But Gold should hold up here.

On that note, I’ve just notified subscribers of my Private Wealth Advisory newsletter to five small cap gold plays all of which are trading just above their cash levels.

Put another way, at these valuations, you’re almost getting their gold reserves and mining equipment for FREE. Talk about a cheap deal!

As I write this, all five of them are UP in a big way. One has already soared 4% today alone!

To find out what they are, all you have to do is take out a trial subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to my Special Update on these gold plays… as well as FIVE Special Reports outlining some of the biggest risks to the financial system.

These include…

The “C” Word: the Dark Secret the Fed Wants Hidden

The Inflation Secrets Your Broker Won’t Tell You About

Protect Your Family

Protect Your Savings

Protect Your Portfolio

To take out a trial subscription to Private Wealth Advisory…

Click Here Now!!!

Best Regards

Graham Summers