By The SRSrocco Report
The financial system is sitting on the edge of a cliff and an increasing number of investors are beginning to realize it. I hear more and more evidence from contacts in the financial and precious metal industry that the U.S. banking industry and Dollar are in serious trouble.
Authored by James Rickards, originally posted at The Telegraph,
For a century, elites have worked to eliminate monetary gold, both physically and ideologically.
This began in 1914, with the UK’s entry into the First World War. The Bank of England wanted to suspend convertibility of bank notes into gold. Keynes counselled wisely that the bank should not do so. Gold was finite, but credit elastic.
When it comes to the US manufacturing sector which as a result of the oil sector collapse recently entered a recession, for years it was the US auto industry which was presented as a shining example of how "things can go right" and how US manufacturing workers have benefited when year after year domestic auto production rose and recently hit a record high annualized production rate.
"The market is moving so quickly, yesterday felt just like the stock market in June last year before the crash," warns one Asian trader reflecting on the chaotic rush of Chinese speculators into the industrial metals commodities market Echoing the frenzy that fueled China's parabolic stock market rise (and subsequent collapse), Bloomberg notes one local China broker admits "we’ve seen a lot of people opening accounts for commodities futures recently," adding rather ominously, "the great ball of China money is moving away from bonds and
In an interview posted on Swiss Finanz und Wirthschaft, Jeff Gundlach unleashes his deep ir, and in traditional style, offloads on both the Fed and all central banks, sayng that "negative interest rates are the dumbest idea ever", adding that the Fed has given up both trying to normalize interest rates as well as trying to actually stimulate the economy: