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TND Podcast Spotlight: Shadow of Truth |
The global economic system, including and especially the U.S. economy, is starting to collapse. Negative economic reports have been continuously streaming since late last fall. Even by the Government’s own manipulated numbers, the GDP in the U.S. contracted in Q1. From the majority of the economic reports for April and May – nothwithstanding the absurdly fraudulent U.S. Government non-farm payroll report – it is likely that Q2 GDP will be at least as negative as it was in Q1.
Interestingly, and something which has gone completely unnoticed, there’s been a big rally in the junior mining stock sector, which is up 18% since March 10. The junior mining stock sector of the market has outperformed everything since March. This tells us that the smartest money is expecting a big move in gold and silver:
That makes sense because of what the other markets are telling us. The Shanghai Containerized Freight Index and the Baltic Dry Index are both telling us in tandem with each other that the global economy is tanking – it’s done – it’s toast. – Rory Hall, Shadow of Truth
Perhaps most puzzling is that, in the face of contracting economic activity, bond yields in the big western economies are spiking higher (see below). This should not be occurring. In our opinion, not only is the system collapsing but the Fed and ECB are losing their ability to control the markets, with spiking bond yields as primary evidence.
In this latest Shadow of Truth market update, we discuss some of the big indicators telling us that the system is collapsing.
Since early April, the yield on the 10yr Treasury has spiked up 38%. This graph below shows the big move lower in the price of the 10yr Treasury (price moves in the opposite direction of yield – Central Banks and big investor – e.g. pension funds – have lost $10s of billions in their Treasury positions since early April – derivatives losses are trebled in magnitude:
This graph shows the recent big spike up in the German 10yr bund yield:
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About Dave Kranzler:
I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.
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