S&P Futures Trade At Record High As Precious Metal Surge Accelerates

US equity futures are little changed in thin trading with most traders away from the screens, while the bulk of overnight actions was once again in gold and silver as precious metals soared to a new record high driven by feverish Chinese demand. As of 8:15am, S&P futures were flat after closing Wednesday's session at a new record high, while Nasdaq 100 futs were fractionally in the green. Asian markets were mostly higher while European bourses are closed. The dollar was unchanged as were treasuries, with the benchmark 10-year yield at 4.13%. There is no macro on today's calendar. 

In premarket trading, Mah 7 stocks were mixed (Nvidia +0.7%, Tesla +0.2%, Alphabet +0.1%, Apple little changed, Amazon -0.1%, Meta Platforms -0.1%, Microsoft -0.2%).

• Miners including Coeur (CDE) and Freeport (FCX) are higher as gold, silver and platinum jumped to all-time highs and copper surged to a record in Shanghai and rallied in New York.
• Biohaven (BHVN) drops 14% after a mid-stage study of the company’s experimental drug BHV-7000 for the treatment of major depressive disorder missed the primary endpoint.
• Coupang (CPNG) gains 6.3% after Yonhap News reported the e-commerce company has identified the former employee who allegedly accessed personal data of 33 million customers; the company has retrieved all hard disk drives and devices that the ex-worker used.

As the Santa Rally accelerates, the MSCI All Country World Index gained 0.1%, rising for a seventh day, while a gauge of Asian stocks climbed 0.2%; Australia, Hong Kong and markets in Europe remain for holidays. Bloomberg’s index of the dollar held near the lowest since October. Treasuries were little changed, with the benchmark 10-year yield at 4.13%. 

Once again, the bulk of the overnight action was in gold and silver, which jumped as escalating geopolitical tensions and dollar weakness helped extend a historic rally for precious metals. Spot silver advanced for a fifth day, climbing as much as 5.2% to cross $75 an ounce for the first time. Gold, set for its best annual advance since 1979, rose as much as 1.2% to above $4,500 an ounce.

Copper surged to a record in Shanghai and rallied in New York, adding to substantial annual gains as investors bet on tighter global supplies in 2026, while also pricing in the impact of a weaker US dollar.

Meanwhile, the “Santa Claus Rally” which we said would be unleashed by Abu Dhabi's bailout of OpenAI's funding plans last week, is set to push stocks to fresh records even as exuberance over artificial intelligence and the Federal Reserve’s interest-rate path are being questioned. The rally is traditionally seen as taking place on the final five trading sessions of a year and the first two of the new one. Of course, the rally can well start early, and it did just that with the S&P 500 rising Wednesday for a fifth day in a shortened session ahead of the Christmas holiday. 

“As equity markets enter the fourth year of a bull market, our underlying market call remains constructive,” Scott Chronert, head of US equities strategy at Citigroup Inc., wrote in a note this week. “The current fundamental backdrop clearly has the opportunity for an ongoing AI-related tailwind to large-cap growth.”

After earlier concerns over high valuations for tech stocks amid the AI boom, traders are regaining confidence that companies will deliver solid earnings growth in 2026.

European bourses are  closed; Asian stocks extended gains for the week, helped by advances in Japan, Taiwan and South Korea.  The MSCI Asia Pacific Index climbed as much as 0.5%, putting the gauge on track for its best week since late November. Samsung Electronics, TSMC and SK Hynix were among the biggest boosts to the index’s gain. Markets in Hong Kong, Australia and Indonesia remained closed for a holiday. Markets fell in Vietnam, Thailand and India.

Tech shares traded higher, amid a year-end rally in US peers, with Samsung Electronics rising to an all-time high. Japanese stocks rose as tech shares and exporters bolstered the indexes, while buying in dividend names also lifted shares. Mainland China shares rose, with gains in stocks related to solar, precious metals, lithium batteries and new energy vehicles boosting the gauge.

“China equity markets enter 2026 with the wind at their back, and new momentum from advanced manufacturing and tech self-sufficiency drivers,” according to a note by UBS CIO. “With domestic investors on board and global investors adjusting their stance, we see more upside ahead, even if occasional volatility and geopolitical squalls lie on the horizon.”

“There were AI-related concerns earlier this month, but those seem to have been digested by the market,” said Tetsuo Seshimo, a portfolio manager at Saison Asset Management in Tokyo.

In FX, the yen weakened 0.4% to about 156.44 to the dollar after a report showed Tokyo’s inflation cooled more than expected as pressures from food and energy prices faded. That triggered weakness in the currency on bets the Bank of Japan may push back the timing of its next rate hike. Meanwhile, China set the yuan’s daily reference rate at a level that was below market estimates by a record margin, in the latest sign of policymakers’ intention to slow the currency’s appreciation.

The move came after the offshore yuan advanced past the psychological level of 7 per dollar on Thursday for the first time since September 2024. The PBOC has steered the yuan toward a path of appreciation to appease Beijing’s trading partners, but has sought to maintain a gradual pace of gains to avoid a surge of hot-money inflows.

In commodities, oil headed for the biggest weekly gain since October, as traders tracked a partial US blockade of crude shipments from Venezuela and a military strike by Washington against a terrorist group in Nigeria.

Tyler Durden Fri, 12/26/2025 - 08:53

China Sanctions 20 US Defense Firms, Issues 'Red Line' Warning Over Record Taiwan Arms Deal

After sounding the constant warning that Washington is "playing with fire" in continually arming and supporting self-ruled Taiwan, China's foreign ministry announced Friday new sanctions on ten individuals and 20 American defense companies, mostly notably among them Boeing, specifically in response to American arms sales to Taiwan.

The ministry described that the sanctions freeze any assets that the listed people and firms hold in China and prohibit Chinese organizations and citizens from conducting business with them, and singled out Boeing's St. Louis-based defense branch, Northrop Grumman Systems Corporation and L3Harris Maritime Services - among others.

Also on the list is Palmer Luckey, the founder of defense firm Anduril Industries. The sanctioned executives are barred from traveling to mainland China, as well as Hong Kong and Macau.

Anduril Industries

"In response to the latest US announcement of large-scale arms sales to China’s Taiwan region, China has decided to take countermeasures in accordance with the anti-foreign sanctions law against 20 US defense-related companies and 10 senior executives who have engaged in arming Taiwan in recent years," stated the Chinese foreign ministry.

"Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response… No country or force shall ever underestimate the resolve, will, and ability of the Chinese government and people to safeguard national sovereignty and territorial integrity," it added.

The ministry described that "movable and immovable properties, and other kinds of assets" of these American firms and individuals within China "shall be frozen."

The punitive measure follows the Trump administration's provocative announcement last week of an $11.1 billion arms package for Taiwan, which is record-setting, confirmed as the largest such US sale to the island to date.

Beijing has said "The Taiwan issue lies at the heart of China’s core interests and represents the first red line in China-U.S. relations that must not be crossed," according to a foreign ministry spokesperson.

The Pentagon’s Defense Security Cooperation Agency said the major arms sales are intended to support Taipei's efforts to "modernize its armed forces and to maintain a credible defensive capability."

The biggest chunks of the package include some $4 billion of Himars truck-based missile launchers, enough for 82 of the advanced systems.

The Himars have enough range to be able to reach targets on China's east coast, which introduces a new level of 'deterrence' from Taipei's and Washington's perspectives.

This revelation that Chinese cargo ships are being set up with sensors and missile launchers is part of a pattern. The CCP is using civilian ships as military. Many ships in the countries fishing fleets have also been militarized.
No tech equipment from China should be trusted.…

— Michael Ron Bowling (@mrbcyber) December 26, 2025

Last week, soon on the heels of this, Beijing issued a blistering statement saying, "The 'Taiwan independence' forces on the island seek independence through force and resist reunification through force, squandering the hard-earned money of the people to purchase weapons at the cost of turning Taiwan into a powder keg."

That prior statement had added, "This cannot save the doomed fate of 'Taiwan independence' but will only accelerate the push of the Taiwan Strait toward a dangerous situation of military confrontation and war. The U.S. support for 'Taiwan Independence' through arms will only end up backfiring. Using Taiwan to contain China will not succeed."

Tyler Durden Fri, 12/26/2025 - 08:25

Gold Surges As Central Banks Brace For Global Debt Storm

Submitted By Thomas Kolbe

The gold price is racing from one all-time high to the next. That’s good news for friends of the precious metal and bad news for anyone still hoping for a stabilization of global debt dynamics. 

Assuming the markets close out the year without major volatility, gold holders can look forward to an approximate 70 percent increase in value within a single year. This is remarkable—not least because 2024 already ended with a 26 percent gain for the otherwise conservative asset class of precious metals. That amounts to a doubling of value in just two years—a surge usually seen in the tech sector rather than gold.

A Store of Value in Turbulent Times 

For the most stable money humanity has ever known, which has served as a store of value in crises for millennia, this is no ordinary development. Quite the opposite. Among those who follow geopolitical developments and financial markets closely, such a compressed upward movement is an unmistakable signal: Danger is imminent. 

Whether it’s military conflicts—like the Ukraine crisis, which still carries dangerous escalation potential—or the global debt dynamics now affecting nearly every region, capital is visibly fleeing to the safe haven of gold. Gold has a key advantage over other assets: there is no counterparty risk. Physical ownership—not as an ETF held at a bank—represents a tangible value that, aside from the annual 1.6 percent mining increase, neither inflates nor can be arbitrarily frozen.

By comparison, the M2 money supply—which includes cash, deposits, short-term term deposits such as money market funds, and savings accounts—is expected to grow by seven to nine percent globally this year. Gold is becoming scarcer relative to circulating fiat money—a compelling argument, particularly in central bank circles. Banks are well aware that their interest rate policies, coupled with ongoing debt monetization, lead to planned currency devaluation. Hence, the precise move into gold—central bankers are essentially trying to secure themselves.

The size of the global gold stock is limited and fairly precisely measurable. Worldwide, there are 216,000 tons of gold, equating to a volume of 11,200 m³—forming a cube with a side length of 22.3 meters. 

Central Banks Scent Their Own Crisis 

Globally, it was again the central banks pushing gold prices higher this year. The Polish, Chinese, and Turkish central banks stand out. Combined, central banks are expected to add roughly 1,000 tons of gold to their vaults this year—a figure well above the long-term average of 400–500 tons. As mentioned: danger is imminent.

This massive buying suggests that central bankers know full well we are facing a global debt problem—or may already be in the eye of the storm. Interest rates are rising in almost every economy, prompting investors to demand higher risk premiums on sovereign bonds from highly indebted states. The U.S., with over 120 percent debt, joins France (~117 percent) and Italy (~136 percent). Even Germany, currently an exception at 65 percent debt, plans a significant buildup in the coming years. Overstretched welfare states and additional burdens from migration-related crises push public budgets further into deficit, only offset by continuously growing bond volumes.

When central banks step in and take on large parts of this new debt, the credit money supply grows alongside the actual credit process, driving inflation in both goods and asset prices. 

Subordinating monetary policy to fiscal mandates has created a powerful political unit. Debt policy becomes the norm, and the natural causality between deficit, higher taxes, and inflation is systematically stretched out over time. Who today links rising food prices or the precious metal boom to the Federal Reserve or the ECB?

Private investors feel the pressure, too: German households, for instance, bought about 9,000 tons of gold this year in the form of jewelry, goods, and coins.

Trust Crisis in the Global Financial System 

Growing private and institutional demand for safe assets, which shows no sign of abating and is expected to continue into 2026, points to a severe trust crisis. Rising sovereign bond yields—especially in Japan, with debt around 230 percent—have reached alarming levels, scaring investors and exposing the depth of the trust crisis. A storm is brewing—and Japan may well be where it begins. 

For years, Japan served as a carry trade hub: borrowing cheaply in yen and investing elsewhere for higher returns with limited currency risk. Rising rates there could abruptly make these long-standing financing models unprofitable.

The foundation of the international financial market, largely built on U.S. Treasuries, risks destabilization. Options to hedge against the monetary excess—central banks taking on massive state debts—are limited. 

Gold remains one of the safest havens. For those preferring more volatility, Bitcoin is digital gold: serving the same purpose, independent of state creditworthiness, and operating as a self-contained economic ecosystem. 

Italy and the Final Alarm Signal 

As if one more proof were needed that a storm might hit capital markets, Italy—one of the Eurozone’s three pillars—has gone on the offensive. The country is working to legally transfer gold stored at the Italian central bank to state ownership. 

Does Prime Minister Giorgia Meloni foresee that in a Euro crisis, the ECB might tap national gold reserves to stabilize the common currency?

How far has the trust crisis in capital markets already advanced? The new year may soon give us a clearer answer to this pressing question. 

Tyler Durden Fri, 12/26/2025 - 08:00

Escobar: Europe's Elites Pay For The Privilege Of Losing Conflict

Authored by Pepe Escobar,

When in doubt, Europeans should always re-read Tacitus. As a true Roman, he considered that sacrifice was only worthy if conducted at the service of the motherland. In his time, the Roman Empire. In our time, that would be civilization-state Italy.

Tacitus was a keen student of Resistance – reflecting on the worthiness of the heroic deaths of those condemned to suicide by Nero and Domitian. He followed all the legal battles, the condemnation of lay martyrs such as Seneca. He talks about them with veneration; but branded their sacrifice as sterile.

Tacitus refused the temptation of heroism – and asked himself if between the ardor of disdain and vile obsequiousness a path could be found exempt from vaingloriousness.

He certainly didn’t see this path in the future of Rome. He experienced life under absolute power – today that would be under the yoke of the European Union (EU) and European Commission (EC) – and noted that to exercise it or be submitted by it was equally degrading.

The questions he could not answer are eternal. Whether a people protagonist of History and enjoying domination is able to be worthy of it; whether it’s possible for those who govern to remain wise; and for those who are subjects, what to do to not humiliate themselves.

To History and politics, Tacitus posed only moral questions. For him, the only possible salvation will come via moral healing.

He quoted some verses of brilliant poet Lucan, who was also a victim of Nero – who wrote that considering “the most serious calamities” one “had proof that not towards our security are the gods solicitous, but of our punishment”.

All these questions apply now to Europeans being subjugated by appallingly mediocre warmongering elites – who are only speeding up a negative vortex way more serious than the decadence of Rome. While “the Gods” are Olympically oblivious of the punishment inflicted on mere – taxpaying – mortals.

Throwing Money Into a Black Void

Enter the latest European elite scam: the decision to hand over to the “criminal organization” in Kiev – President Putin’s terminology – a cool 90 billion euros joint loan for 2026-2027, at 0% interest rate. Hungary, Slovakia and the Czech Republic officially refused to be part of the scam.

This joint EU borrowing – funds that they don’t have in the first place – automatically turns into EU debt. The onus will be on EU-wide taxpayers. Not only they will be stripped of 90 billion euros of their hard earned income coupled with high taxes; they will pay European banks for the “privilege”. Everyone in the corridors of the EC in Brussels knows that only in interest, EU member-states will have to pay over 3 billion euros a year.

The imperative corollary: funds for health services, education and social rights will go even more down the drain than at present.

It’s key to be reminded that this sweet loan will only cover two years to keep the Kiev gang on life support. Afterwards, it will be yet another scam. And even the sweet loan won’t be enough for 2026-2027 – covering only two-thirds of the black hole in Kiev.

The conditions for the loan are mind-boggling. Kiev will repay it if – and the operative word is an impossible “if” – receives “full reparations” from Russia. The EC in Brussels has stipulated the total amount at over half a trillion euros.

It gets even juicier. Before the loan, the EC had previously declared Ukraine insolvent; and announced that it could not provide loans to Kiev. Still, they forced themselves to come up with this latest sweet loan: direct financing, a de facto grant.

According to Ukraine’s lead negotiator Rustem Umerov:

“there are two scenarios: 1 – if the conflict ends, the funds will go toward rebuilding the country; 2 – if aggression continues, Ukraine expects €40–45 billion annually for defense and security.”

Both scenarios are absurd. First: Moscow – as the victor in the conflict – will never agree to finance the rebuilding of Ukraine via its own sovereing wealth fund stolen by Europeans. Second: the Kiev gang is already positioning itself to be showered with more free money, as in “if aggression continues…”

This whole circus is in progress because the EU failed to steal the Russian sovereign wealth funds for good – no matter the tsunami of spin speculating on who finally “betrayed” who (arguably France’s Le Petit Roi dumped the German BlackRock chancellor at the final stage of the negotiations).

What matters in the end is that a few economists with an IQ above a Brussels room temperature warned their “leaders” that if the “robbery” (Putin’s terminology) of Russia would go on, nations holding sovereign wealth funds – from Asia to the Persian Gulf – would always regard them not as savings but as high risk investments, with catastrophic consequences.

There are no illusions in Moscow. Deputy Chairman of the Security Council Dmitri Medvedev noted that “Brussels thieves” have not ditched their plans. Additionally, the toxic Medusa in charge of the EC had already stated that Russian assets can be unblocked only by a qualified majority vote – as in, for instance, two-thirds or three-quarters of the total number of member-state voters.

Tacitus would have approved Putin’s lapidary evaluation of the EU: “They [the previous US administration] believed Russia could be easily broken up and dismantled. European ‘swine underlings’ immediately joined the efforts of that previous American administration, hoping to profit from our country’s collapse: to reclaim what had been lost in earlier historical periods and to exact a form of revenge. As has now become evident to all, every one of those attempts, every destructive design against Russia, has ended in complete and total failure”.

Watch Those European Bonds

The 90 billion euro sweet loan is just the top of a deep, deep iceberg. Add to it the – still non-existent – funds to keep weaponizing Kiev as well as buying gas, fuel and electric energy, as Ukraine is totally dependent on the EU. In parallel, the EU lost the Russian market: in 2021, before the start of the SMO, the EU was exporting 90 billion euros a year to Russia.

The burning question of how much will it take to rebuild Ukraine has now reached forest fire territory. A 2024 World Bank study placed it at 600 bilion euros – to be paid in full by an EU locked in a Forever War mindset.

Considering how Russia is now on a roll bombing key Ukrainian military infrastructure, the final cost of the European adventure – after Napoleon and Hitler, now it’s the EU/NATO Coalition of Hell’s turn – may easily reach and surpass 1 trillion euros, complete with European-wide de-industrialization; loss of global competitivity; loss of the Russian market; an array of US tariffs; and total vassalization imposed by the Empire of Chaos.

As if all this concentric black void was not enough, German finance experts warn that the yield on European bonds is rising fast. After all, no one in his right mind will lend money to these Forever Wars “elites” at a low interest rate.

So the name of the game now is high risk – at the systemic level. This includes: governments refinancing debt at higher rates; corporations refinancing on even worse terms; banks tightening lending standards.

In a nutshell: Capital is flowing out of weak balance sheets. And bonds always move first, because they assess cash flows, not European warmongering narratives.

Every serious crisis starts with rising interest rates. 0% for Ukraine does not even qualify as a fairy tale. What matters, for starters, is what bank sharks will charge on that sweet 90 billion grant.

Don’t count on an European axis of sanity suddenly stepping up to save the former apex of civilization. That may take generations. Meanwhile, Tacitus applies. The Gods seem to be totally relishing the punishment inflicted on mere – taxpaying – mortals.

Tyler Durden Fri, 12/26/2025 - 07:00

Peter Schiff: Printing Money Is Not the Cure for Cononavirus



In his most recent podcast, Peter Schiff talked about coronavirus and the impact that it is having on the markets. Earlier this month, Peter said he thought the virus was just an excuse for stock market woes. At the time he believed the market was poised to fall anyway. But as it turns out, coronavirus has actually helped the US stock market because it has led central banks to pump even more liquidity into the world financial system. All this means more liquidity — central banks easing. In fact, that is exactly what has already happened, except the new easing is taking place, for now, outside the United States, particularly in China.” Although the new money is primarily being created in China, it is flowing into dollars — the dollar index is up — and into US stocks. Last week, US stock markets once again made all-time record highs. In fact, I think but for the coronavirus, the US stock market would still be selling off. But because of the central bank stimulus that has been the result of fears over the coronavirus, that actually benefitted not only the US dollar, but the US stock market.” In the midst of all this, Peter raises a really good question. The primary economic concern is that coronavirus will slow down output and ultimately stunt economic growth. Practically speaking, the world would produce less stuff. If the virus continues to spread, there would be fewer goods and services produced in a market that is hunkered down. Why would the Federal Reserve respond, or why would any central bank respond to that by printing money? How does printing more money solve that problem? It doesn’t. In fact, it actually exacerbates it. But you know, everybody looks at central bankers as if they’ve got the solution to every problem. They don’t. They don’t have the magic wand. They just have a printing press. And all that creates is inflation.” Sometimes the illusion inflation creates can look like a magic wand. Printing money can paper over problems. But none of this is going to fundamentally fix the economy. In fact, if central bankers were really going to do the right thing, the appropriate response would be to drain liquidity from the markets, not supply even more.” Peter explained how the Fed was originally intended to create an “elastic” money supply that would expand or contract along with economic output. Today, the money supply only goes in one direction — that’s up. The economy is strong, print money. The economy is weak, print even more money.” Of course, the asset that’s doing the best right now is gold. The yellow metal pushed above $1,600 yesterday. Gold is up 5.5% on the year in dollar terms and has set record highs in other currencies. Because gold is rising even in an environment where the dollar is strengthening against other fiat currencies, that shows you that there is an underlying weakness in the dollar that is right now not being reflected in the Forex markets, but is being reflected in the gold markets. Because after all, why are people buying gold more aggressively than they’re buying dollars or more aggressively than they’re buying US Treasuries? Because they know that things are not as good for the dollar or the US economy as everybody likes to believe. So, more people are seeking out refuge in a better safe-haven and that is gold.” Peter also talked about the debate between Trump and Obama over who gets credit for the booming economy – which of course, is not booming.

We are living in crazy times. I have a hard time believing that most of the general public is not awake, but in reality, they are. We've never seen anything like this; I mean not even under Obama during the worst part of the Great Recession." Now the Fed is desperately trying to keep interest rates from rising. The problem is that it's a much bigger debt bubble this time around , and the Fed is going to have to blow a lot more air into it to keep it inflated. The difference is this time it's not going to work." It looks like the Fed did another $104.15 billion of Not Q.E. in a single day. The Fed claims it's only temporary. But that is precisely what Bernanke claimed when the Fed started QE1. Milton Freedman once said, "Nothing is so permanent as a temporary government program." The same applies to Q.E., or whatever the Fed wants to pretend it's doing. Except this is not QE4, according to Powell. Right. Pumping so much money out, and they are accusing China of currency manipulation ? Wow! Seriously! Amazing! Dump the U.S. dollar while you still have a chance. Welcome to The Atlantis Report. And it is even worse than that, In addition to the $104.15 billion of "Not Q.E." this past Thursday; the FED added another $56.65 billion in liquidity to financial markets the next day on Friday. That's $160.8 billion in two days!!!! in just 48 hours. That is more than 2 TIMES the highest amount the FED has ever injected on a monthly basis under a Q.E. program (which was $80 billion per month) Since this isn't QE....it will be really scary on what they are going to call Q.E. Will it twice, three times, four times, five times what this injection per month ! It is going to be explosive since it takes about 60 to 90 days for prices to react to this, January should see significant inflation as prices soak up the excess liquidity. The question is, where will the inflation occur first . The spike in the repo rate might have a technical explanation: a misjudgment was made in the Fed's money market operations. Even so, two conclusions can be drawn: managing the money markets is becoming harder, and from now on, banks will be studying each other's creditworthiness to a greater degree than before. Those people, who struggle with the minutiae of money markets, and that includes most professionals, should focus on the causes and not the symptoms. Financial markets have recovered from each downturn since 1980 because interest rates have been cut to new lows. Post-2008, they were cut to near zero or below zero in all major economies. In response to a new financial crisis, they cannot go any lower. Central banks will look for new ways to replicate or broaden Q.E. (At some point, governments will simply see repression as an easier option). Then there is the problem of 'risk-free' assets becoming risky assets. Financial markets assume that the probability of major governments such as the U.S. or U.K. defaulting is zero. These governments are entering the next downturn with debt roughly twice the levels proportionate to GDP that was seen in 2008. The belief that the policy worked was completely predicated on the fact that it was temporary and that it was reversible, that the Fed was going to be able to normalize interest rates and shrink its balance sheet back down to pre-crisis levels. Well, when the balance sheet is five-trillion, six-trillion, seven-trillion when we're back at zero, when we're back in a recession, nobody is going to believe it is temporary. Nobody is going to believe that the Fed has this under control, that they can reverse this policy. And the dollar is going to crash. And when the dollar crashes, it's going to take the bond market with it, and we're going to have stagflation. We're going to have a deep recession with rising interest rates, and this whole thing is going to come imploding down. everything is temporary with the fed including remaining off the gold standard temporary in the Fed's eyes could mean at least 50 years This liquidity problem is a signal that trading desks are loaded up on inventory and can't get rid of it. Repo is done out of a need for cash. If you own all of your securities (i.e., a long-only, no leverage mutual fund) you have no need to "repo" your securities - you're earning interest every night so why would you want to 'repo' your securities where you are paying interest for that overnight loan (securities lending is another animal). So, it is those that 'lever-up' and need the cash for settlement purposes on securities they've bought with borrowed money that needs to utilize the repo desk. With this in mind, as we continue to see this need to obtain cash (again, needed to settle other securities purchases), it shows these firms don't have the capital to add more inventory to, what appears to be, a bloated inventory. Now comes the fun part: the Treasury is about to auction 3's, 10's, and 30-year bonds. If I am correct (again, I could be wrong), the Fed realizes securities firms don't have the shelf space to take down a good portion of these auctions. If there isn't enough retail/institutional demand, it will lead to not only a crappy sale but major concerns to the street that there is now no backstop, at all, to any sell-off. At which point, everyone will want to be the first one through the door and sell immediately, but to whom? If there isn't enough liquidity in the repo market to finance their positions, the firms would be unable to increase their inventory. We all saw repo shut down on the 2008 crisis. Wall St runs on money. . OVERNIGHT money. They lever up to inventory securities for trading. If they can't get overnight money, they can't purchase securities. And if they can't unload what they have, it means the buy-side isn't taking on more either. Accounts settle overnight. This includes things like payrolls and bill pay settlements. If a bank doesn't have enough cash to payout what its customers need to pay out, it borrows. At least one and probably more than one banks are insolvent. That's what's going on. First, it can't be one or two banks that are short. They'd simply call around until they found someone to lend. But they did that, and even at markedly elevated rates, still, NO ONE would lend them the money. That tells me that it's not a problem of a couple of borrowers, it's a problem of no lenders. And that means that there's no bank in the world left with any real liquidity. They are ALL maxed out. But as bad as that is, and that alone could be catastrophic, what it really signals is even worse. The lending rates are just the flip side of the coin of the value of the assets lent against. If the rates go up, the value goes down. And with rates spiking to 10%, how far does the value fall? Enormously! And if banks had to actually mark down the value of the assets to reflect 10% interest rates, then my god, every bank in the world is insolvent overnight. Everyone's capital ratios are in the toilet, and they'd have to liquidate. We're talking about the simultaneous insolvency of every bank on the planet. Bank runs. No money in ATMs, Branches closed. Safe deposit boxes confiscated. The whole nine yards, It's actually here. The scenario has tended to guide toward for years and years is actually happening RIGHT NOW! And people are still trying to say it's under control. Every bank in the world is currently insolvent. The only thing keeping it going is printing billions of dollars every day. Financial Armageddon isn't some far off future risk. It's here. Prepare accordingly. This fiat system has reached the end of the line, and it's not correct that fiat currencies fail by design. The problem is corruption and manipulation. It is corruption and cheating that erodes trust and faith until the entire system becomes a gigantic fraud. Banks and governments everywhere ARE the problem and simply have to be removed. They have lost all trust and respect, and all they have left is war and mayhem. As long as we continue to have a majority of braindead asleep imbeciles following orders from these psychopaths, nothing will change. Fiat currency is not just thievery. Fiat currency is SLAVERY. Ultimately the most harmful effect of using debt of undefined value as money (i.e., fiat currencies) is the de facto legalization of a caste system based on voluntary slavery. The bankers have a charter, or the legal *right*, to create money out of nothing. You, you don't. Therefore you and the bankers do not have the same standing before the law. The law of the land says that you will go to jail if you do the same thing (creating money out of thin air) that the banker does in full legality. You and the banker are not equal before the law. ALL the countries of the world; Islamic or secular, Jewish or Arab, democracy or dictatorship; all of them place the bankers ABOVE you. And all of you accept that only whining about fiat money going down in exchange value over time (price inflation which is not the same as monetary inflation). Actually, price inflation itself is mainly due to the greed and stupidity of the bankers who could keep fiat money's exchange value reasonably stable, only if they wanted to. Witness the crash of silver and gold prices which the bankers of the world; Russian, American, Chinese, Jewish, Indian, Arab, all of them collaborated to engineer through the suppression and stagnation of precious metals' prices to levels around the metals' production costs, or what it costs to dig gold and silver out of the ground. The bankers of the world could also collaborate to keep nominal prices steady (as they do in the case of the suppression of precious metals prices). After all, the ability to create fiat money and force its usage is a far more excellent source of power and wealth than that which is afforded simply by stealing it through inflation. The bankers' greed and stupidity blind them to this fact. They want it all, and they want it now. In conclusion, The bankers can create money out of nothing and buy your goods and services with this worthless fiat money, effectively for free. You, you can't. You, you have to lead miserable existences for the most of you and WORK in order to obtain that effectively nonexistent, worthless credit money (whose purchasing/exchange value is not even DEFINED thus rendering all contracts based on the null and void!) that the banker effortlessly creates out of thin air with a few strokes of the computer keyboard, and which he doesn't even bother to print on paper anymore, electing to keep it in its pure quantum uncertain form instead, as electrons whizzing about inside computer chips which will become mute and turn silent refusing to tell you how many fiat dollars or euros there are in which account, in the absence of electricity. No electricity, no fiat, nor crypto money. It would appear that trust is deteriorating as it did when Lehman blew up . Something really big happened that set off this chain reaction in the repo markets. Whatever that something is, we aren't be informed. They're trying to cover it up, paper it over with conjured cash injections, play it cool in front of the cameras while sweating profusely under the 5 thousands dollar suits. I'm guessing that the final high-speed plunge into global economic collapse has begun. All we see here is the ripples and whitewater churning the surface, but beneath the surface, there is an enormous beast thrashing desperately in its death throws. Now is probably the time to start tying up loose ends with the long-running prep projects, just saying. In other words, prepare accordingly, and Get your money out of the banks. I don't care if you don't believe me about Bitcoin. Get your money out of the banks. Don't keep any more money in a bank than you need to pay your bills and can afford to lose.











The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more













The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

The FBI released a summary of its file from the Hillary Clinton email investigation on Friday, showing details of Clinton's explanation of her use of a private email server to handle classified communications. The release comes nearly two months after FBI Director James Comey announced that although Clinton's handling of classified information was "extremely careless," it did not rise to the level of a prosecutable offense. Attorney General Loretta Lynch announced the next day that she would not pursue charges in the matter. "We are making these materials available to the public in the interest of transparency and in response to numerous Freedom of Information Act (FOIA) requests," the FBI noted in a statement sent to reporters with links to the documents. The documents include notes from Clinton's July 2 interview with agents, as well as a "factual summary of the FBI's investigation into this matter," according to the FBI release. Throughout her interview with agents, Clinton repeatedly said she relied on the career professionals she worked with to handle classified information correctly. The agents asked about a series of specific emails, and in each case Clinton said she wasn't worried about the particular material being discussed on a nonclassified channel.