10 Years Later, a Debt Crisis Is Building Again

Though it seems like only yesterday, it’s been a decade since my former employer, Lehman Brothers went bankrupt, and in the process, helped instigate a massive global financial crisis.

That collapse catapulted the Federal Reserve on a mission to, in its own narrative, save the economy from further collapse. In fact, its creation of $4.5 trillion to purchase U.S. treasury and mortgage related bonds from the big private banks in exchange for continued liquidity was the biggest subsidy in U.S. history.

In some ways, we seem much better off now. Employment is at record highs in most developed nations outside the Eurozone. Global economic growth has picked up overall and stock markets have recovered

Mortgage Rates Head to 6%, 10-Year Yield to 4%, Yield Curve Fails to “Invert,” and Fed Keeps Hiking

Nightmare scenario for the markets? They just shrugged. But homebuyers haven’t done the math yet.

There’s an interesting thing that just happened, which shows that the US Treasury 10-year yield is ready for the next leg up, and that the yield curve might not invert just yet: the 10-year yield climbed over the 3% hurdle again, and there was none of the financial-media excitement about it as there was when that happened last time. It just dabbled with 3% on Monday, climbed over 3% yesterday, and closed at 3.08% today, and it was met with shrugs. In other words, this move is now accepted.

Note how the 10-year yield rose in two big surges since the historic low in June 2016, interspersed by some backtracking. This market might be setting up for the next surge:

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Last week I wrote about farmland in South Africa…

And how it’s taken a pounding thanks to a radical politician who is threatening to take farmland from white farmers without compensation.

While I don’t think it’s time to buy South African farmland yet – that situation can get MUCH worse before bottoming – it’s always smart to keep an eye on a country in crisis.

And today, there’s an ongoing tragedy in Nicaragua – a beautiful Central American country just above Costa Rica.

The Best 12 Months for Stocks Starts Soon

Politics and investing don't mix...

It's often tough to separate the two, though. Most folks have strong political opinions. And it's easy to drag those into your investments.

Imagine you're a green-energy activist. You might love the idea of solar energy, so you put your money to work in First Solar (FSLR) – a leader in the industry.

But if you'd bought it at the stock market bottom in 2009, you wouldn'tbe sitting on massive profits today. Instead, you'd have lost more than half of your initial investment.

Similarly, if your political interests aligned with fossil fuels, you might have invested in the coal industry. That again would have been a bad investment decision based on politics... especially if you invested anytime in the last seven years. The entire coal sector is down around 70% from the latest peak in 2011.

Coinbase Hires Former Fannie Mae Exec as New Chief Legal Officer

Cryptocurrency exchange Coinbase has hired on former Fannie Mae General Counsel Brian Brooks as their new Chief Legal Officer, according to an announcement published September 19. At Coinbase, Brooks will be responsible for legal, compliance, and government affairs.

Prior to Coinbase, Brooks served as Executive Vice President, General Counsel and Corporate Secretary of the U.S. Federal National Mortgage Association (FNMA), commonly known as Fannie Mae. The association purchases qualifying mortgages from lenders, which it then bundles in bonds and sells to investors. In 2017, Fannie Mae reportedly provided $570 billion in mortgage financing.

State of the Market

The Right Price: Are Pretium Resources and Detour Gold for Sale?

The gold market is in a funk. And if you have an internet connection, you don’t need me to remind you.

The gold price can barely keep up to the $1,200 mark and the trend doesn’t look too friendly.

Managed money short positions continue to hit record bearish positions in the weekly commitment of trader’s reports. Below is a chart showing the current short position for non-commercial short speculators.

Investor sentiment is very low. According to data from SentimentTrader published last month… “Optimism on gold, silver, and platinum now ranks among the lowest in 27 years.”

Small exploration companies are looking to cash up on any market momentum.

And tax loss season this year could be the most brutal since 2012.

Economist Predicts END OF U.S. EMPIRE

I Showed My Dad (and His Friends) How to Buy Bitcoin

By Nick Rokke September 18, 2018

“Nick, I’m glad you’re going to tell us about bitcoin.”

That’s what a lady named Loretta told me before my cryptocurrency presentation at the Wisconsin Rapids Rotary Club.

Earlier this month, I visited my parents at their lake house in Wisconsin. While there, my dad, Bruce, invited me to talk to the Rotary Club about cryptocurrencies.

My dad knows all about Palm Beach Research Group and world-renowned cryptocurrency expert Teeka Tiwari. He’s seen the life-changing gains Teeka has made for his subscribers.

He believes blockchain technology will play an important role in the future… And he wanted to share that with leaders in his community.

A Commodities Boom for the Ages Starts Now

By Dave Forest, editor, International Speculator

I just secured $5 million of financing for a gold project in Brazil.

It’s a good project—a redevelopment of a famous mine, with significant high-grade mineralization remaining.

And funding it has been a telling experience. One that’s led me to a raft of research showing that another major commodities boom could be starting as soon as this autumn.

Let me start from the beginning.

I secured the Brazilian mine through a complex bankruptcy purchase. It took nearly a year of working with insolvency lawyers and industry specialists to design a strategy for salvaging the asset.

When that got done early in 2018, I started looking for financing.

The Low-Risk Way to Profit From “Skim Trades”

In September 2017, word leaked that cellular service provider T-Mobile had offered to buy rival Sprint for $6.71 per share.

Today, Sprint trades around $6.10 per share while both sides continue to work on the deal.

But those who invest in Sprint today could get a guaranteed 10% profit whenever the deal closes. That’s because T-Mobile has already agreed to buy the shares at the previously mentioned $6.71 per share—60 cents more than where it trades now.

Wall Street calls these money-making opportunities “merger arbitrage” plays. At PBRG, we call these “Skim Trades.”

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Cannabis Wealth – Riches! It’s Happening Now!

Dear Reader,

Pure Global Cannabis (PURE) is up 51% since August!

Koios Beverage Crop. (KBEV) is up 130% in just the past two weeks!

What’s incredible, though, is that these companies have barely gotten started and the upside here for both of them is enormous.

The Future Money Trends Letter was the first financial publisher in the world to cover these two tiny under-the-radar companies, which are now receiving incredible investor attention.

But we’ve barely scratched the surface.

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What Truckers & Railroads Said About the Economy: Blistering Demand is Backing Off, Cyclicality Lives

But the cost of shipping surges, no holds barred.

The signs that the infamous cyclicality of the transportation industry is changing direction once again are still timid. This industry is a thermometer of the goods-based economy. And it has been hopping! But the first such signs are appearing, even as activity is at record highs, amid complaints of equipment and driver shortages, bottlenecks and delays in the supply chains, and a massive double-digit surge in pricing.

Freight shipment volume across all modes of transportation – truck, rail, air, and barge – rose 6.0% in August, compared to a year earlier, according to the Cass Freight Index. The index covers merchandise for the consumer and industrial economy but does not include shipments of bulk commodities, such as grains or chemicals

The best natural gas stock to buy right now

If you’re considering getting into the asset management business… I share what I think the future of the industry looks like… along with some great advice.  

For all you sports fans out there… Week one of the NFL is in the books. I tell you what I learned from the first week—and who to watch out for.

When it comes to transporting energy, our country is going through a massive transition that presents a fantastic opportunity. I explain what’s happening… and also give you my favorite stock to buy right now.

My thoughts and prayers are with all of you in the path of Hurricane Florence. Be safe.

The 'Plunge-Protection Team' Arrives in China

The entire Chinese stock market soared 155% in less than one year... ending on June 12, 2015 – only three years ago.

That's an incredible return... But I expect we will see similarly incredible returns in China again soon.

My prediction is that – sometime in the next five years – we will see a 100%-plus move in Chinese stocks within an 18-month period.

That's the good part of the story. But what about the bad part of the story? What about the recent downturn in China?

I'll share the conclusion with you up front: Last month, the Chinese government stepped in...

David Stockman | $20 Trillion Elephant in the Room

Avoid the Con Artists. Here’s the Critical Demand Secret in the Copper Market

Copper is a vital element used in nearly everything around you.

It’s used for plumbing in houses and factories. Since copper is also a wonderful conductor of electricity, it is used in power lines, electric motors, wiring, cars, and appliances as well.

This aspect – copper’s excellent electrical conductivity – makes it a critical part of the electric vehicle (EV) revolution.

For example, an electric vehicle requires three times more copper than conventional internal combustion engine vehicles.

On average, a car with an internal combustion engine uses 55 pounds of copper. A hybrid uses about 110 pounds, and an EV uses 165 pounds of copper.

I’m long term bullish on copper, especially companies that produce a specific kind. Which I’ll get to in a moment.