Equity 1 Group
Pushing back the frontiers of economic ignorance and restoring sound financial foundations, one family at a time.

Jun
14

SovereignMan  |  Simon Black

This one is almost too ridiculous to believe.

Recently a new bill was introduced on the floor of the US Senate entitled, pleasantly,

“Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017.”

You can probably already guess its contents.

Cash is evil.

Bitcoin is evil.

Now they’ve gone so far to include prepaid mobile phones, retail gift vouchers, or even electronic coupons. Evil, evil, and evil.

These people are certifiably insane.

Among the bill’s sweeping provisions, the government aims to greatly extend its authority to seize your assets through “Civil Asset Forfeiture”.

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Jun
07

Pop goes another currency!

ZeroHedge  |  Tyler Durden

The Qatari Riyal plunged to record lows (and forward FX markets indicate the peg is doomed)

As Bloomberg reports Saudi Arabia’s central bank has ordered lenders in the country not to increase their exposure to any Qatari clients amid the worst crisis in relations among the Gulf Arab monarchies in decades.

Image result for saudi riyal image

The Saudi Arabian Monetary Agency also told banks licensed in the country that they should not process any payments denominated in Qatari riyals, the people said, asking not to be identified because the information is private.

The order to refrain from increasing exposure to Qatar is being applied to include treasury investments, loans, letters of credit and trade-finance facilities, the people said.

Saudi Arabia is among countries including the United Arab Emirates, Egypt and Bahrain, that have blocked transport routes with Qatar, accusing the country ofdestabilizing the region through supporting proxies of Shiite Muslim Iran and the Sunni militants of al-Qaeda and Islamic State.

Some banks in Saudi Arabia, the U.A.E. and Bahrain have already begun cutting their exposure to Qatar, other people said on Wednesday.

Jun
07

ZeroHedge  |  Tyler Durden

“If you think this has a happy ending, you haven’t been paying attention…”

…warns MINT Partners’ Head of Capital Markets Bill Blain, as he reflects on what just happened in Europe (that US equities seem happy to brush off as yet another fleshwound to global instability).

There is a rule in Financial Institutions that any bank that calls itself “popular” generally isn’t. This was proved last night. But, congratulations if you were a holder of Spain’s Banco Popular’s Senior Debt – they did a Zebedee “boing!” on the basis last night’s last minute Santander rescue makes the bonds money good. Read the rest of this entry »

Jun
07

BloombergInvest  |

U.S. markets are at their highest risk levels since before the 2008 financial crisis.

Image result for financial crisis images

Speaking at the Bloomberg Invest summit in New York, Bill Gross (of the recently merged Janus Henderson) who may or may not have been talking his bond book, issued a loud warning to traders saying U.S. markets are at their highest risk levels since before the 2008 financial crisis “because investors are paying a high price for the chances they’re taking.” Well, either that, or simply ignoring the possibility of all ETFs having to sell at once.

“Instead of buying low and selling high, you’re buying high and crossing your fingers,” Gross said Wednesday quoted by Bloomberg.

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Jun
07

PhoenixCapital  |  Graham Summers

The number of S&P 500 companies reporting negative earnings is rising rapidly.

Why does this matter?

It matters because this usually signals right before a stock market peak.

Below is a chart illustrating the percentage of S&P 500 companies reporting negative earnings running back to 1999.

As you can see, we are now at levels that have usually occurred just before stock market peaks (the last two times we were at these levels were 2007 and 2000, respectively).

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Jun
07

NewsMax  |  Staff Writer

“A weaker U.S. dollar boosted the value of other currencies and assets held by China in May”

China Map flag on Yuan illustration

China’s foreign exchange reserves rose in May for a fourth consecutive month and by more than markets had expected, as stringent capital control measures and a weakening in the dollar helped staunch outflows.

Reserves rose $24 billion in May to a seven-month high of $3.054 trillion, compared with an increase of $21 billion in April, central bank data showed on Wednesday.

It was the first time since June 2014 that reserves climbed for four months in a row, and the biggest gain since reserves moved back above the closely watched $3 trillion level in February.

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Jun
05

Bloomberg  |  Ranjeetha Pakiam

Gold may extend gains after climbing to the highest level in six weeks following disappointing monthly reports on U.S. employment and wages, according to two analysts attending a conference in Singapore this week.

safe-open

Prices will probably increase to a four-year high above $1,400 an ounce this year as a “less than inspiring” recovery means the Federal Reserve won’t step up the pace of increases in borrowing costs, leaving real rates in negative territory, according to Nikos Kavalis, director and founding partner of Metals Focus Ltd., an independent consultancy. Toronto-Dominion Bank’s Bart Melek said gold may touch $1,300 with a $1,275 average in the fourth quarter.

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Jun
05

DollarCollapse  |  John Rubino

Image result for soaring debt images

It’s just common sense: Borrow too much money and the weight of this debt makes it hard to do things that used to be easy. This truism is now (finally!) hitting home, and blame is being apportioned. A couple of recent examples:

(Economic Collapse Blog) – Even though I write about our ongoing long-term economic collapse every day, I didn’t realize that things were this bad. In this article, I am going to show you that the average rate of growth for the U.S. economy over the past 10 years is exactly equal to the average rate that the U.S. economy grew during the 1930s.

Read the rest of this entry »

Jun
05

EconomicCollapse  |  Michael Snyder

I don’t see how anyone can possibly claim that the U.S. economy is doing well… prior to the last recession there were 26 million Americans on food stamps, now we have 44 million, we’re on pace to shatter the all-time record for store closings in a single year, and the number of homeless in LA has risen by 23% over the past 12 months…

But once again, it is a battle of perception vs. reality.”

Broke

Did you know that the number of working age Americans that do not have a job right now is far higher than it was during the worst moments of the last recession?  For example, in January 2009 92.6 million working age Americans did not have a job, but we just found out that in May the number of working age Americans without a job increased to just a shade under 102 million.  We’ll go over those numbers in more detail in a moment, but first I want to talk a bit about the difference between perception and reality.  According to the bureaucrats in the federal government, the “unemployment rate” in May was the lowest that we have seen in 16 years.  At just “4.3 percent”, we are essentially at “full employment”, and so according to them anyone that really wants a job should be able to find one pretty easily.

Of course that is a load of nonsense.  John Williams of shadowstats.com tracks what our economic numbers would look like if honest numbers were being used, and according to his calculations the unemployment rate is currently 22 percent.

So what accounts for the wide disparity between those numbers?

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Jun
05

OfTwoMinds  |  Charles Hugh Smith

The general view in inflation is dead, essentially forever. Maybe. Maybe not.

Image result for helicopter money images

We all know real-world inflation for big-ticket expenses is far above the official rate of around 2% annually.

Yet conventional economists are virtually unanimous that deflation is the danger and inflation is a “good thing” we need to spur so servicing existing debt becomes easier for debtors.

Due to the deflationary pressures of technology and stagnant wages for the bottom 90%, the consensus sees low inflation as far as the eye can see.

When the consensus is near-100% on one side of the boat, we can safely bet Reality will not conform to expectations. This leads to a question: what could cause official near-zero inflation to surprise the consensus and leap higher?

One possible answer is “helicopter money”: money created by central banks that is distributed directly to households via tax rebates, debt forgiveness, or Universal Basic Income (UBI).

For the past 17 years, central banks have funneled credit and liquidity into the banks at the top of the wealth-power pyramid. Very little of this new “wealth” has trickled down to the bottom 90% of households in the real economy who have seen their earnings stagnate and their costs rise.

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