Day: February 19, 2016

This is the Template For How Bail-Ins Will Come to the US

This is the Template For How Bail-Ins Will Come to the US

The War on Cash is now going into hyper-drive.

In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.

These moves will be sold as “for the public’s good,” when they happen. But the reality is that it’s all about stopping people from moving their capital into actual physical cash.

The whole template for this was set out in Cyprus in 2013. The quick timeline for what happened in Cyprus is as follows:

  • June 25, 2012: Cyprus formally requests a bailout from the EU.
  • November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
  • February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
  • March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
  • March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
  • March 18 2013: Bank holiday extended until March 21 2013.
  • March 19 2013: Cyprus parliament rejects bail-in bill.
  • March 20 2013: Bank holiday extended until March 26 2013.
  • March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
  • March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose 40% of their money (Bank of Cyprus) or lose 60% (Laiki).

The most important thing I want you to focus on is how lies and propaganda were spread for months leading up to the collapse. Then in the space of a single weekend, the whole mess came unhinged and accounts were frozen.

One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment).

There were no warnings that this was coming because everyone at the top of the financial food chain are highly incentivized to keep quiet about this. Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.

For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system. Even middle managers and lower level employees won’t talk about it because A) they don’t know the truth concerning their institutions or B) they could be fired for warning others.

Please take a few minutes to digest what I’m telling you here. You will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy (with the exception of folks like Ron Paul who are usually marginalized by the media).

With that in mind, now is a good time to prepare for systemic risk. I cannot forecast precisely when things will get as ugly as they did in Cyprus for the financial system as a whole (no one can).

However, the clear signals are clear that the Feds are preparing for something big. The Treasury Department has ordered survival kits for the Big Banks’ employees… and the NY Fed is expanding its satellite office in Chicago in case something major happens that forces the market to collapse.

Indeed, we’ve uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from this sinister plan in our Special Report

Survive the Fed’s War on Cash.

We are making 1,000 copies available for FREE the general public.

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

 

Best Regards

Phoenix Capital Research

 

Posted by Phoenix Capital Research in It's a Bull Market

The Bond Bubble is Already Bursting… Here’s How We Know

As we outlined last week, the bursting of the bond bubble has begun.

CNBC and the financial media may spend 99% of their time talking about stocks, but bonds are the single most important issue for Central Banks.

When you consider everything in the context of the bond bubble, every Central Bank policy begins to make sense.

  • Central Banks cut interest rates to zero to make bond payments smaller.
  • Central Banks launched QE and other programs to put a floor beneath bond prices (when bond prices rise, bond yields fall and debt payments become smaller and easier to service).
  • Central Banks provided verbal intervention promising to do “more” or “whatever it takes” whenever bonds came close to ending their bull market.

None of these issues address what created the bond bubble in the first place. So global governments, corporations and others took advantage of low interest rates to issue… more debt.

In 2008 the bond bubble was $80 trillion in size. Today it’s $100 trillion. Put simply, the financial system is even more leveraged today than it was in 2008.

And the bond bubble just burst.

Today corporates are more leveraged than they were in 2007. Thus, the Bond Bubble not only encapsulates sovereign nations, but even individual companies. And now that bubble is bursting.

Companies have defaulted on $95bn worth of debt so far this year, with 2015 set to finish with the highest number of worldwide defaults since 2009, according to Standard & Poor’s.

The figures are the latest sign financial stress is beginning to rise for corporate borrowers, led by US oil and gas companies. The rising tide of defaults comes as investors reassess their exposure to companies that borrowed heavily in recent years against the backdrop of central bank policy suppressing interest rates…

Based on the number of defaults in the first three quarters of the year, S&P expects 109 defaults by year-end, the largest total since 268 borrowers ran into problems in 2009. There were only 60 defaults worldwide in 2014.

Source: Financial Times

The first sector to go belly up was energy, due to the collapse in Oil prices started mid-2014.

———————————————————————–

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 17% year to date.

Over the same time period, the S&P 500 DOWN 8%.

That’s correct, with minimal risk, we are outperforming the S&P 500 by 25%… and the year only just started!

Our next goes out tomorrow morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…

CLICK HERE NOW!!!

———————————————————————–

However, as the below chart shows, this is much more than an Energy bust:

corporate defaults

This wave of defaults be increasing as the global economy weakens. Year over Year corporate sales growth is already flatlining and trending down.

YOY

Energy is the worst performer from a sales perspective, but it is hardly alone. Materials, Industrials, Technology, and Utilities are all posting negative growth resulting in overall negative sales growth for the S&P 500. And we’ve reached the point that even financial engineering via buybacks is failing to mask the fact that profits are falling:

Corp profit

As a result of this, money is flowing out of corporate bonds, particularly junk bonds. Last year (2015) was the first year since 2009 that Junk Bonds finished DOWN for the year.

That bubble has now clearly burst.

sc-1 copy

This is just the beginning. The bond bubble will take months to completely implode. And eventually it will consume even sovereign nations.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 75 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in Debt Bomb
Japan Has Officially Lost Control of Its Financial System

Japan Has Officially Lost Control of Its Financial System

For over six years, the markets have been moving based on Central Banker actions and words.

The first phase (2009 to 2013) was dominated by action (ZIRP and QE).

The second phase (2013 to the present) was increasingly reliant on words (verbal intervention) as most Central Banks had by then used up 90% of their ammo.

As former Fed Chair Bernanke himself noted in his recent memoirs:

“Monetary policy is 98% talk and 2% action, especially when short term rates are near zero”

However, we are now reaching the point at which even actions AND words are losing their effect on the markets.

———————————————————————–

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 17% year to date.

Over the same time period, the S&P 500 DOWN 8%.

That’s correct, with minimal risk, we are outperforming the S&P 500 by 25%… and the year only just started!

Our next goes out tomorrow morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…

CLICK HERE NOW!!!

———————————————————————–

Last Friday, the Bank of Japan introduced Negative Interest Rates or NIRP. The ensuing rally in the Nikkei lasted roughly 30 minutes before reversing all of its gains. It was only through concerted manipulation by the Bank of Japan that the Nikkei finished the day in the green.

Fast-forward to today, and the head of the Bank of Japan Haruhiko Kuroda is already promising to engage in even more NIRP if needed. He stressed there was “no limit” to monetary easing measures.

Yes, this took place only a few days later.

So… the Bank of Japan launches NIRP for the first time in its history. And within THREE trading days is already promising to do MORE, going so far as to say that it has “no limit” on what it will try.

This is what it looks like when a Central Bank loses control= total desperation.

Bear in mind, the Bank of Japan has been at the forefront for ALL monetary policy for decades. The US Federal Reserve launched its first QE program in 2008. The European Central Bank launched its first QE program in 2015.

The Bank of Japan first launched QE back in 2001.

In short, the Bank of Japan has two decades of experience with QE AND ZIRP. It has launched the single largest QE program in history (an amount equal to over 20% of Japan’s GDP). And it has expanded its balance sheet to over 65% of Japan’s GDP.

In short, the Bank of Japan has gone “all in” to attempt to reflate its financial system. It has completely failed. And now it is so desperate that it is promising to do even MORE only three days after its latest monetary surprise.

The End Game for Central Banks has officially begun.

Another Crisis is coming. Smart investors are preparing now.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 75 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
Gold Has Outperformed Stocks Since… 1967!?!?!

Gold Has Outperformed Stocks Since… 1967!?!?!

Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment.

These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong.

To whit…

Gold has absolutely CRUSHED stocks since 2000. During this period we’ve had two of the biggest stock market bubbles in history. Yet Gold’s performance has made stocks’ performance look like a flat-line.

Gold2

H/T Bill King.

———————————————————————–

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 17% year to date.

Over the same time period, the S&P 500 DOWN 8%.

That’s correct, with minimal risk, we are outperforming the S&P 500 by 25%… and the year only just started!

Our next goes out tomorrow morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…

CLICK HERE NOW!!!

———————————————————————–

Put another way, Gold has demolished stocks during a period in which the Fed was printing money by the trillions of Dollars. The Fed and other Central Banks may want to boost stocks, but Gold is the biggest beneficiary from their insanity.

However, Gold’s long-term outperformance of stocks is even more incredible.

Most “analysis” of Gold as an investment runs back for 100 years or so. However, this analysis is deceptive as Gold was pegged to major currencies up until 1967.

Of course, the geniuses in the media overlook this little tidbit because once major countries began to de-peg their currencies from Gold in 1967, the precious metal has absolutely DEMOLISHED stocks in terms of performance.

Gold2

H/T Bill King

Since 1967, Gold has risen 33 fold. The S&P 500 is up just 21 Fold. Had you ignored stocks completely and simply bought Gold you would be significantly RICHER.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 67 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
Why This Crisis Will Be Worse Than 2008

Why This Crisis Will Be Worse Than 2008

For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.

All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. Similarly, anyone with a functioning brain could tell you that a bunch of academics with no real-world experience, none of whom have ever started a business or created a single job can’t “save” the economy.

However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.

So it’s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don’t have a clue how to fix the problem, but that they actually have almost no incentive to do so.

———————————————————————————

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

CLICK HERE NOW!!!

———————————————————————————

So here are the facts:

1)   The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.

2)   The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.

3)   Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it’s likely a significant amount.

4)   Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion… today they are $7 trillion: an amount equal to nearly 50% of US GDP.

5)   The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.

6)   The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed’s balance sheet was $1.3 trillion (back in 2009). Today it’s over $4.5 trillion.

We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work.  They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.

The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 75 straight winning trades. 

And throughout the last 14 months, we’ve not closed a SINGLE loser.

With a track record like this, we’re getting a LOT of attention, so we’re going to be raising the price of a Private Wealth Advisory in the next few weeks.

However, you can try it right now for 30 days for just 98 cents… but you better move fast, because these slots are selling out!!!

To lock in a $0.98, 30-day trial subscription to Private Wealth Advisory

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?