Expect Financial Collapse & Flight To Gold

Today David Stockman warned King World News that there is a great “unwind” ahead that will “ricochet” violently through all global financial markets.  Stockman also predicted there will be a worldwide flight to gold during the coming panic which will eclipse the mania seen in gold in 1980.  KWN takes Stockman’s warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget.  Below is what Stockman had to say in this powerful and exclusive interview.

Stockman:  “The markets are just irrationally thrashing around in response to a Fed that has lost control of policy.  They have been working their way to the edge of a cliff, I think, for years now with this massive money printing, bond buying, and zero interest rates.

They are saying through 2015 we are not going to tighten the short-term interest rate, which means it will be zero for (a total of) six years.  That is just crazy, almost lunatic….

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

“Therefore, the markets no longer function as honest capital markets or money markets.  They are simply a lot of boys and girls and algorithms running around trying to trade whatever they think the Fed is going to do next based on word clouds and these massive daily purchases.

So we have a totally broken financial system and we can expect this kind of turmoil in every one of the major securities markets to get worse as we move towards the final blowoff of this third bubble that we’re in in the 21st century … and it’s only a matter of time before this one blows as well.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/22_David_Stockman_-_Expect_Financial_Collapse_%26_Flight_To_Gold.html

David Stockman Warns Investors “Get Out Of Harm’s Way”


Today David Stockman warned King World News that people need to be prepared for tremendous chaos in global financial markets, and investors need to “get out of harm’s way.”  Stockman is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget.  Below is what Stockman had to say in part II of his powerful and exclusive interview.

Eric King:  “You’ve talked about large carry trades, and I’m just wondering what your vision is of how those will unwind?”

Stockman:  “That’s what’s wrong with zero interest rate policy and keeping the overnight rate at zero.  It allows people to buy assets that have any kind of yield or any kind of appreciation, put them up as repo, and borrow 95 cents to 98 cents on the dollar.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

This isn’t a natural way for a market to function.  The point is that if confidence is ever lost that the Fed and the other central banks of the world can keep this game going, these massive trillions of dollars of carry trades of this sort will unwind….

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/23_David_Stockman_Warns_Investors_Get_Out_Of_Harms_Way.html

Here Is The Reason For Gold’s Massive Surge Above $1,300

With gold surging above the critical $1,300 level, today the man who provides macro research and commentary to many of the largest financial institutions and top hedge funds around the world sent KWN 6 absolutely stunning gold charts illustrating the why the gold market has smashed well above key resistance.  Eric Pomboy, who is founder of Meridian Macro Research, also provided incredible commentary to go along with the 6 remarkable gold charts, as well as what all of this means going forward for the gold market.

July 22 (King World News) – Gold Surges Through Key $1,300 Level – Charts Of The Day

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

COT data for week ending 7/16 show Commercials added to their Net Short Position by ‐5,566 contracts.  As for the Specs, they added +6,905 contracts, bouncing off the lowest Net Long position since 2005.  It’s too early to tell of course, but the data may signal the bottom for Gold is in.

 

 

Looking at the Net Commercial position in relation to Open Interest (see below), we get a strong flashing buy signal at these levels.  Again, too early to tell, but the data would certainly suggest a significant and extended rally is near.

 

 

The Gold relative to Net Commercial Position chart is most telling (see below).  We’ve seen a huge bounce off the historic low of ‐6.75, to ‐5.27, a 22%, 1‐week bounce.  The exact same happened at the 2005 and 2008 bottoms for Gold (at $412 and $712 respectively) — In 2005, a 1‐week (22%) bounce from ‐1.10 (low) to ‐0.85; in 2008, a 1‐week (22%) bounce from ‐1.13 (low) to ‐0.88.  Each time signaled a bottom for gold, and each time a 70‐72% rally ensued.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/22_Here_Is_The_Reason_For_Golds_Massive_Surge_Above_$1,300.html