One Of Richard Russell’s Last And Most Amazing Predictions Is Now Unfolding

Late last year, Richard Russell made one of his last and most amazing predictions ever.  Below is what the Godfather of newsletter writers had to say.

(King World News) – From legendary Richard Russell:  “Americans are scared to death and befuddled by the news of the day. They are well aware that their own lives and jobs have little to do with the nonsense that the Fed and the government is shoveling out to them.

Early Stages Of A Historic, Primary Bear Market

I’m afraid that we’re in the early stages of a primary bear market. Each bear market has its method of attack…Bear markets are sneaky beasts and they like to do their damage as secretly and as unobtrusively as possible. I hate to say it but somewhere ahead, the bears going to get it all together and the innocent little stream is going to turn into a waterfall. 

What can you do about it? Stay out of the market? Protect yourself by remaining in pure wealth, gold. For thousands of years, silver and gold have been treated as pure wealth. As the standard measures of wealth (stocks and bonds) have deteriorated, veteran investors have forgone profits and moved their assets into pure wealth.

I think the calm and easy part of this bear market has drawn to a close. We are moving into the high drama portion. Politically, I noticed a cartoon that tells a story. A hugely muscled and bare chested Putin is on the beach. Obama is sitting in the sand while Putin is kicking sand in Obama’s face. The question — how much sand will Obama eat?

Chinese And Indians Buying Gold In Huge Quantities

In the meantime, the story is that worried Chinese investors are dumping their stocks and buying gold in huge quantities. They are emulating the Indians, who are buying gold in huge quantities.

The year ahead is guaranteed to provide surprises and I sincerely hope that one of them will not be WWIII. I think Putin will push Obama as far as he can go, short of war.  But mistakes happen, which is one reason why gold is creeping higher.

One Of Russell’s Last And Most Amazing Predictions Is Now UnfoldingI use $1,250 as the point of no return for gold. If gold betters $1,250 and stays there, I think we will have confirmation of a new bull market in gold. Gold demand from China, India, Russia and other nations continues to be enormous. Chinese imports through Hong Kong in August were more than double that of a year ago. And gold withdrawals to the Shanghai exchange have been huge.”  King World News note:  Fast forward to this year and gold took out the $1,250 price that Russell warned was the key on March 3rd.  Well, here we are two months later with gold still trading close to the $1,250 level that Russell said was the key to launching the next leg higher in the secular bull market in gold.  

If gold can remain above $1,250 that would trigger Russell’s bull market call for gold.  This also explains why there has been such a fierce battle raging near the $1,250 zone, with commercials — i.e. bullion banks — now holding massive short positions in a desperate attempt to try to stop Russell’s prediction from unfolding.  

All of this left me wondering, “How could Russell possibly have known that it would unfold this way?”  Then I thought, “That’s why he was the greatest financial writer in history, the Godfather of newsletter writers, and there will never be anyone to replace him.”

http://kingworldnews.com/one-of-richard-russells-last-and-most-amazing-predictions-is-now-unfolding/

Max Interviews Jim Rickards On The New Case For Gold

Published on Apr 30, 2016

Check Keiser Report website for more: http://www.maxkeiser.com/

In this episode of the Keiser Report Max and Stacy discuss the quest to ‘Make America Great Again’ as only two AAA rated companies are left standing and trade deals which are loaded with ‘all risk, no benefit’ threaten to annihilate the last vestiges of dignity, hope and greatness remaining. In @ 13:08 of the second half Max interviews Jim Rickards about his new book, The New Case for Gold. They destroy the old arguments against holding gold and look at the latest action in the gold market and what it portends for the future world order.

https://goldsilver.com/video/max-interviews-jim-rickards-on-the-new-case-for-gold/

The Energy Junk Bond Default Rate Just Hit An All Time High

When we last looked at the soaring default rate among junk bonds issuers just two weeks ago, we noted that the $14 billion in defaults had already pushed the April total to the highest since 2014, while the first quarter was the fifth highest quarterly default total on record.

But it was the stark deterioration within the energy space that we said would promptly push high yield bond defaults within the troubled sector to hit all time highs in very short notice.

That prediction was validated less than a month later because following this weekend's bankruptcies of Ultra Petroleum and Midstate Petroleum which added $3.1 billion to the mushrooming high-yield energy bond default volume tally, in addition to the $1.5 billion of credit facility defaults, the energy high-yield default has soared to a record 13% rate, surpassing the 9.7% mark set in 1999, according to Fitch Ratings.

To be sure, neither of these defaults were a surprise: prior to this weekend, Fitch had a 2016 energy sector default forecast of 20% and included both of these filings in the annual forecast. Furthermore, based on the current bond trading prices of approximately $0.15 for Ultra's $850 million 6.125% bonds due 2024 and $450 million 5.75% bonds due 2018, the market also expects well below-average bond recoveries, something else we have previously highlighted will be a distinct feature of this default cycle.

As Fitch goes on to note, Ultra Petroleum cited persistently low natural gas pricing that left it with an unsustainable capital structure as reason for filing. The company plans to use the bankruptcy process to renegotiate unprofitable contracts as well as reduce its $3.7 billion of total bank and bond debt obligations. The $999 million reserve-based credit facility (RBL) at subsidiary borrower Ultra Resources was essentially fully drawn at the time of filing, following a $216 million draw in February 2016.

Ultra's bankruptcy was expected as it followed the expiration of grace periods for interest payments on notes, nonpayment of certain pipeline transportation fees, bank covenant violations and de-listing of the common shares.

Midstates Petroleum's filing affects approximately $1.8 billion of total debt and is based on a pre-arranged plan support agreement with its lenders under the reserve-based revolving credit facility that represents approximately 80% of first lien facility borrowings, along with certain other creditors holding approximately 74% of second lien debt and 77% in principal amount of the third lien debt. The proposed plan incorporates some secured debt paydowns and equity conversion of debt that is junior to the first lien debt. Low commodity prices triggered a liquidity crunch at the company.

Low market trading prices on the bonds portend poor recoveries for unsecured creditors. Midstates's unsecured $294 million, 10.75% senior unsecured bonds, due 2020, and $348 million, 9.25% senior unsecured bonds, due 2021, were bid at $1.875 and $1.75, respectively. The $625 million, 10% second lien notes, due 2020, were bid at $44.625 and the $524 million, 12% third lien notes, due 2020, were bid at eight cents on the dollar.

In more bad news for bank lenders, Midstates, like Ultra borrowed up to the remaining maximum RBL borrowing base in the months leading up to bankruptcy. Midstates drew $249 million under its $750 million RBL in February 2016 to build cash in advance of the bankruptcy filing and the April 2016 re-determination. Full draws of RBLs ahead of restructuring and re-determinations have occurred among some of the most distressed E&P companies as they plan to enter restructuring with this cash liquidity. Linn Energy and W&T Offshore are two other E&P companies that recently fully utilized RBLs.

But this biggest problem for banks is that as more energy companies default should oil prices fail to materially recover, leading to tumbling recoveries across the capital structure and far greater impairments than modeled, the question will once again become one of just who has the greatest committed exposure to the energy sector, especially if as we hinted earlier today, the oil price pattern from last summer reasserts itself and WTI proceeds to slide once more as shale producers resume pumping now that they have been properly hedged following the recent rebound in oil.

http://www.zerohedge.com/news/2016-05-02/energy-junk-bond-default-rate-just-hit-all-time-high

Egon von Greyerz Warns The World Is Now On The Edge Of Total Chaos And Disaster

On the heels of wild start to the 2016 trading year, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, just warned that the world is now on the edge of total chaos and disaster.  He also discussed the historic opportunity in the gold and silver markets.

Egon von Greyerz:  “We know that central banks and governments have lost the plot. When the crisis started in 2006, US short rates were 5%. In 2008 they were down to zero and have virtually stayed there ever since. A crisis package of $25 trillion was thrown at the financial system. This is what the likes of JP Morgan and Goldman told the Fed they had to do to save the bank(-ers).

Ten years later the world financial system is in a mess that is exponentially increasing. World debt has exploded, most governments are running deficits and the financial system is balancing dangerously on the edge of a precipice. $8 trillion of government debt is now negative and $16 trillion is below 1%…

Egon von Greyerz continues:  “Negative yields are supposed to stimulate a deflationary global economy and also save bankrupt nations, which can’t afford to pay a market interest rate on their exploding debts. But as usual, the central bankers have got it wrong again. Negative rates are increasing the risks for the financial system and the world economy. Bank profitability is crashing due to the low rates and forces them to take greater risks. For savers it kills the incentive to save. And without savings, there will be no investments and no growth in the economy.

Pensions – The Ticking Time Bomb
But the biggest disaster is hitting the pension sector. Virtually all pension funds are seriously underfunded, especially if they applied realistic rates of return. Pension funds hold three principal investments, stocks, bonds and property. These are all bubble assets inflated by the credit explosion that central banks have orchestrated.

As these assets implode, there will be no pensions left for anybody. People who are about to retire in coming years have no understanding of the fate that is going to hit them. They will receive no pension or a pension that is worthless. As the economy deteriorates, the unemployment rate will also rise dramatically. The combination of retirees with no pension and a high percentage of the population without a job will lead to severe human disasters around the world. Governments will of course print unlimited amounts of money but this will have no effect as manufactured money can never create wealth. 

This is all the result of central banks interfering in the natural cycles of the economy by financial repression and thus interfering with nature’s law. So instead of having minor booms and busts, the manipulation of markets and the economy creates the most massive super booms and busts. It is of course not the first time it happens in history and it will continue to happen. It will sadly lead to a period of very difficult adjustments and misery for current generations and possibly even future ones. 

Dow/Gold Ratio To Move Violently In Favor Of Gold
In addition to all the negative fundamental factors, there are certain indicators that are telling us that we are now getting nearer to the next phase of the downturn that started in 2006 and which has had a temporary reprieve. I have previously talked about the importance of the Dow/Gold ratio. This ratio peaked in 1999 when the Dow was at a high and Gold at the $250 low. The ratio then declined by 87% until September 2011. This means that the average investor in the US stock market was a massive 87% worse off compared to owning gold. Between 2011 and the end of 2015, the ratio recovered 25% of the fall since 1999.

Technically it is very clear that the dead cat bounce in this ratio is now finished and that it is on the way to new lows. Since December last year the Dow has fallen 18% against gold. Eventually I see the ratio going well below the 1 to 1 ratio in 1999 when the Dow hit 800 and Gold also hit $800. But even if the ratio only went to 1 that would mean a fall of the Dow versus gold of 92% from here. So gold in the next few years will not only preserve investors wealth but also enhance it. Holding stocks on the other hand will not only lead to total despair but also to total wealth destruction.

Another indicator which tells us that the bull market in the precious metals has now resumed is the Gold/Silver ratio. Normally silver leads the move in trending metals markets. This is what happened in the 1970s when silver peaked at $50 in 1980. It also happened in 2011 when silver again reached $50 and rose more than two times as fast as gold over a 12-month period. The ratio bottomed at 30 in 2011 and went back all the way to 83 in February this year. This is an important resistance level and several technical indicators gave a strong signal that the correction finished at that level.

Gold/Silver Ratio May Hit 15:1 As The Price Of Silver Soars
Since then the ratio has lost 13%, which means that silver is leading the move up of the precious metals. Within the next year or two the ratio should again reach 30 which means that silver will go up more than twice as fast as gold. Eventually we could see a move to the important historical level of 15. The resumption of the downtrend in the ratio gives us two important messages: Firstly, silver will vastly outperform gold, and secondly, that the metals are now on their way to new highs. But investors must remember that silver is extremely volatile and it is a lot easier to sleep at night by holding more gold than silver. 

A World On The Edge Of Chaos And Disaster
It looks like 2016 will be a year when volatility increases dramatically in the world. Not only are the risks now greater than ever in the world economy as I have discussed many times, but the geopolitical risk is now more serious than it has been for many decades. The US and its allies have created anarchy in Afghanistan, Iraq, Libya and Syria with serious repercussions for world security. There are many other areas that could lead to major war(s) such as Ukraine, Saudi Arabia, North Korea and China (South China Sea). And as we know from history, bankrupt empires often start wars as a final act of desperation. Let’s hope that this doesn’t happen although we must be aware that the risk is major.”

http://kingworldnews.com/egon-von-greyerz-warns-world-now-edge-total-chaos-disaster/

War, Death And Gold - Jim Rickards

Published on Apr 21, 2016

Jim Rickards, author of the well-known book “Currency Wars,” joins The Big Trade series for an enlightening conversation on the world’s foreign exchange markets. Peter starts the conversation by mentioning the chronological logic of Jim’s published books, from “Currency Wars” to “The Death of Money” and “The New Case for Gold.” Jim also shares with Peter the evolution of his ideas.

The discussion quickly shifts to the role of gold as a reserve currency in the modern economy and Jim gives his predictions about global currency markets. The two then delve into the Fed’s solvency, Jim explains why the U.S. Treasury is holding a lot of gold and its potential impact on China. A discussion on the gold war between China and U.S. concludes the episode.

https://goldsilver.com/video/war-death-and-gold-jim-rickards/

2008 Deja Vu? Treasury Warns Congress - Bailout Puerto Rico Or Risk "Chaotic Unwinds... Cascading Defaults"

In a disappointingly similar tone to the warnings, threats, and promises sent to Congress in 2008 when demanding the banks get their bailout (or else), Treasury Secretary Jack lew has released a letter he sent to Congress warning that if Puerto Rico's situation is not "fixed" in an "orderly" manner "quickly" then the nation will face "cascading defaults."

• *LEW: PUERTO RICO NEEDS ORDERLY RESTRUCTURING TO ADDRESS DEBTS
• *LEW WARNS OF `CASCADING DEFAULTS' WITHOUT PUERTO RICO DEBT FIX
• *LEW SAYS CONGRESS MUST WORK QUICKLY ON PUERTO RICO LEGISLATION

As Bloomberg reports,

“With no orderly restructuring framework to address its debts, Puerto Rico will face a series of cascading defaults,” while litigation already under way will intensify and potentially take years to resolve, U.S. Treasury Secretary Jacob J. Lew says in letter to Congress.

“Unless Congress passes legislation that includes appropriate restructuring and oversight tools, a taxpayer-funded bailout may become the only legislative course available to address an escalating crisis”

Legislation must initially allow for voluntary negotiations in timely and fair fashion, offer responsible process especially for 330,000 citizens who depend on pension benefits; labor and federal land transfer issues should also be addressed

“Congress must work quickly to resolve the few outstanding issues on the proposed legislation to help Puerto Rico”

Treasury posts Lew letter on website...

Dear Mr. Speaker:

I am writing to follow up on my January letter regarding Puerto Rico’s debt crisis and to provide information on the mounting costs of congressional inaction.  More than six months ago, the Administration introduced a comprehensive legislative plan to resolve this crisis.  In my January letter, I noted that absent timely congressional action Puerto Rico’s fiscal, economic, and humanitarian situation would continue to deteriorate.

Since then, constructive, bipartisan discussions have taken place, and a bill has been introduced, but Congress has yet to produce a workable legislative response. Meanwhile, the crisis in Puerto Rico has deepened.  In an effort to protect government deposits at Puerto Rico’s Government Development Bank (GDB), the Governor has declared a state of emergency and invoked the temporary debt moratorium powers recently provided to him by the Puerto Rico legislature. Yesterday, the Governor announced that the GDB would be unable to make a $400 million principal payment due today on its $3.8 billion of debt.  While a portion of bondholders are negotiating a restructuring of this debt, any such deal would require the participation of all GDB creditors and thus effectively would be conditioned on federal legislation providing a restructuring authority.

Today’s expected default is only the latest in a series that began last summer.  Since last August, the Public Finance Corporation has failed to make debt service payments on its $1.1 billion of outstanding debt.  In December, the Governor invoked his constitutional “clawback” authority to transfer funds allocated to one set of bondholders in order to pay another.  This “clawback” in turn resulted in the default of $1.9 billion of rum tax bonds and likely has put Puerto Rico on a path to defaulting on another $5.1 billion of highway and hotel tax bonds over subsequent months.

More bond payments, some very large, are coming due soon.  On July 1, Puerto Rico will face nearly $2 billion worth of payments, including almost $800 million of General Obligation debt.  Puerto Rico does not anticipate having sufficient funds to meet these and other obligations, leaving it with the impossible choice of paying its creditors or providing essential government services.  Going forward, Puerto Rico’s $70 billion of debt is unsustainable by any measure.  It simply cannot afford to pay its debt.  And, with a shrinking economy because of people leaving Puerto Rico, further reductions in government spending will be difficult to implement.  Government expenditures, net of debt service, already have been reduced to the lowest level since 2005.

With no orderly restructuring framework to address its debts, Puerto Rico will face a series of cascading defaults.  Litigation—which is already underway—will only intensify.  This wave of litigation will be contentious and protracted, both among competing creditors and against Puerto Rico, and it could take many years to resolve.

This is not just a matter of financial liabilities and litigation.  As I underscored in my January letter, the human costs for the 3.5 million Americans in Puerto Rico are real.  And they are escalating daily.  Hospitals continue to lay off workers, ration medication, reduce services, and close floors.  Moreover, despite the intensifying threat from the Zika virus, financial constraints have made it extremely difficult to counteract.  Unsealed septic tanks, abandoned homes, cemeteries, and piles of old tires, where mosquito larvae grow, for example, must all be treated, but the government is struggling to pay for the work to be done.

Congress must work quickly to resolve the few outstanding issues on the proposed legislation to help Puerto Rico.  For example, the legislation must provide a functional and seamless debt restructuring process that initially allows for voluntary negotiations while ensuring a timely and fair resolution.  The bill also must balance important policy priorities more evenly, most significantly by offering a responsible process to ensure the retirement security of the 330,000 citizens in Puerto Rico who depend on their pension benefits.  Other troubling labor and federal land transfer provisions also should be addressed.  Small changes in text would address these issues in a fair and acceptable way.

In the coming days, it is important to keep in mind that further inaction only gives those seeking to deter Congress from passing a bill more time to continue making inaccurate and misleading claims about the legislation.  Absent enactment of a workable framework for restructuring Puerto Rico’s debts, bondholders will experience a lengthy, disorderly, and chaotic unwinding, with non-payment for many a real possibility.  The people of Puerto Rico will be forced to endure additional suffering.  And, unless Congress passes legislation that includes appropriate restructuring and oversight tools, a taxpayer?funded bailout may become the only legislative course available to address an escalating crisis. 

We appreciate you and those Members of Congress who have been working across the aisle to help put Puerto Rico on a sustainable path forward.  The Administration remains committed to working collaboratively with you and your colleagues to complete action on this critical legislation as soon as possible.

Sincerely,

Jacob J. Lew

http://www.zerohedge.com/news/2016-05-02/2008-deja-vu-treasury-warns-congress-bailout-puerto-rico-or-risk-chaotic-unwinds-cas

Mother's Day Gift KJV Devotional Bible Flexisoft Leather Chocolate Pink

Product Description

Featuring over 400 meditations—from classic to contemporary—that will deepen your love for God's Word.
Introducing the first devotional Bible using the King James Version.
Devotional Bibles became popular twenty years ago, and today they comprise a large portion of the Bible market. But until now, there has never been a devotional Bible for those who love and use the King James Version.
Featuring more than 400 devotions, quotes and selections that have been carefully chosen to reflect the impact that the powerful language of the King James Version has had on writers over the span of four centuries, the Hendrickson KJV Devotional Bible is the first of its kind.
The devotional selections are interspersed throughout the Bible, placed near related scripture passages, allowing the reader to go at his/her own pace rather than follow a prescribed sequence.
From Charles Wesley to Dallas Willard, C. S. Lewis to Elisabeth Elliot, the featured contributor list reads like a "Who's Who" in the pantheon of Christian thinkers:

Bayley, Joseph Bence, Evelyn ten Boom, Corrie Bounds, E. M. Brand, Paul Carmichael, Amy Chambers, Oswald Colson, Charles Crosby, Fanny Elliot, Elisabeth Elliot, Jim Finney, Charles

Gaither, Gloria Henry, Matthew Keller, Phillip Lewis, C. S. Lewis, Joy Davidman MacDonald, George Marshall, Peter Moody, D. L. Müller, George Murray, Andrew Sanford, Agnes Sayers, Dorothy L.

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Product Information

Format: Imitation Leather Number of Pages: 1664 Vendor: Hendrickson Publishers Publication Date: 2011 Dimensions: 8.50 X 5.38 (inches)

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