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“Apocalyptic Paul” Coined by Zero Hedge, Wonders About Coming wars

March 1st, 2018 | by Richard Paul
“Apocalyptic Paul” Coined by Zero Hedge, Wonders About Coming wars
Business and Finance
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Coined by Zero Hedge ” Apocalyptic Paul”, folks,  speaks words of wisdom concerning The Federal Reserve of the United States of America (The Fed), “In my view, higher volatility is inevitable. Volatility collapsed after the crisis because of central bank manipulation. That game’s over. With inflation pressures now building, we will look back on this low-volatility period as a five standard- deviation event that won’t be repeated.”  It then continues by adding: “Let me describe to you where I think Jerome Powell is right now as he takes the reins at the Fed. I would liken Powell to General George Custer before the Battle of the Little Bighorn, looking down at an array of menacing warriors.” They are (The Fed) in effect the world currency holders, thru SWIFT and BIS and their standing army ,etc., being currently challenged as emerging powers declare unilateral  (Dictatorial) supreme head of state, China, Turkey, Russia and Saudi Arabia demonstrating such strategic “coups”. With serious regional wars in the Middle East kindle to spark this economic reality, leaving one to wonder how the dynamics at play today, with Trumpism on track, will play out. One could just as well say we are heading for some rough roads straight ahead, with Hamas, Iran, Turkey, who by the way , Erdogan ,was in The Vatican not long ago, with such antagonistic views in plain sight, then there’s Russia and China. Oh Boy! It’s why it’s called zero hedge folks. Just in time for Jerusalem to become The Capital of Israel on it’s 70th anniversary in May (1948-2018). Benjamin Netanyahu is recorded at the United Nations as being very biblical in words during one of his speech before the convened assembly. The Book of Daniel is also precise about 70 weeks for the most Holy place to be anointed, which is being done this May 2018, amidst the real potential Mr. Netanyahu resigns ,leaving the country looking for a new leader, while his alleged criminal activities, erupts over his alleged schemes, places under him , an aggressive stance, or even an unrepentant Netanyahu clinging to his harden stance.

 

“In a striking interview with Goldman’s Allison Nathan, legendary trader Paul Tudor Jones argues that US inflation is set to accelerate sharply, making bonds a very poor investment, and that the Fed must act swiftly to tackle financial bubbles created by prolonged monetary easing.

Joining such luminaries as Bill Gross and Ray Dalio, who have both claimed the bull market in bonds is over, PTJ joins the choir and warns that “markets disciplined Greece for its budget transgressions; it’s just a matter of time before they discipline us” and as a result he sees the 10-year yields rising to 3.75 percent by year-end as a “conservative” target amid the now traditional and widely discussed bogeymen: supply outweighing demand, economic momentum outpacing the monetary policy response, and “glaring” bond valuations. Oh, and central banks ending the party, of course:

Beginning next September, when the ECB concludes its asset purchases, the aggregate balance sheet of the main central banks will start contracting after nearly a decade of expansion. That will be a major data break, making it a horrible time to own bonds.

PTJ also pours cold water on the repeated suggestion that higher yields will lead to more buying from pension funds: “Bond pension buying, for example, is very pro-cyclical. When stock prices rise, pensions reallocate their capital gains from stocks into bonds. As we’ve seen, this depresses the term premium and fuels more gains in the stock market. If and when the Fed raises rates enough to stop and reverse the stock market rise, that virtuous circle predicated on increasing capital gains will reverse, and bonds and stocks will decline together like they did in the 1970s.

 

Is it well worth an instruction or two in world currency standards as America goes Nationalistic against bitcoin, globalization, wars and rumours of wars and of course the absurd at times. Please read the full article at Zero Hedge. Great insights folks!

 

Especially when a former Fed Titan starts to tell the obvious, as according to zerohedge,  “During an interview on CNBC  Thursday morning ahead of his Jerome Powell’s second day of Congressional testimony, former Fed Chairman Alan Greenspan joined Ray Dalio, Bill Gross, and now Paul Tudor Jones in expecting a very unhappy ending for the decades-long bond-market rally, which in turn will remove the last remaining support under equities.”

 

Of course there is so much happening in the world right now, it’s hard to keep track. So I leave you with this chilling warning from a “furious world responds to Trump“, and a very insightful quote from Kyle Bass:

Kyle Bass writes:

“Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.”

Jim Rickards is also among those who have been sounding the alarm bells over fiscal monetary policies and their consequences, such as this;

“I expect the U.S. will soon label China a currency manipulator, which will lead to still further sanctions. Like Russia, China will not take any of this lying down but will retaliate with its own sanctions, tariffs and bans on U.S. investment in China.

China leaked an announcement recently that the People’s Bank of China was considering allocating its reserves away from additional purchases of U.S. Treasury securities. That should be taken not as an immediate threat but as a shot across the bow indicating how China could retaliate for U.S. tariffs or other trade penalties.

Get ready for an all-out financial war between the U.S. and China.

Germany is also in the crosshairs because of its huge trade surplus. Trump has already torn up the TPP trade agreement and has put Canada, Mexico and South Korea on notice that their trade deals need to be renegotiated.

A full-scale trade war is now upon us. It will shake markets and be a major headwind for world growth. It will get ugly fast and the world economy will be collateral damage.

Today looks like a replay of the 1930s. As Mark Twain reputedly remarked, “History does not repeat, but it does rhyme.”

Next comes the shooting war with North Korea, which will inevitably draw in Russia, China, South Korea and Japan. This will be tantamount to World War III.

Now is a good time to reduce your allocation to stocks, increase your cash allocation to reduce volatility and increase your exposure to gold as a safe haven.”

While others are busy  , like, “Peter Thiel, the billionaire behind PayPal, is among those tech giants who see New Zealand as a good place to go in the event of an apocalypse.” “In fact, Thiel has bought a $13.5 million 193-hectare section on the shores of Lake Wanaka, although the only building there at the moment is a barn (that can be seen).”

luxurysurvival1

 

While the Wall Street Journal said this about Donald Trump.

WSJ Editors: “This Is The Biggest Policy Blunder Of Trump’s Presidency”

Or explained in detail by ZH; The last of course is a reference to Trump’s tweeted prediction that “trade wars are good, and easy to win” to which Inker responds that “even if you do “win” easily, the longer term implications are often more problematic than you thought (the second Iraq War). There is still some time for this particular war to be averted. But while it is our general contention that equity markets tend to overreact to political and economic events, this is not one of those times”

 

 

Richard Paul

 

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