Maddog – that’s interesting and makes complete sense. The only thing I would wonder is that if money is fleeing Europe into treasuries, wouldn’t that force rates down on this side of the pond?

Clearly, some of that negative yielding money should be going into gold and probably is, but we live in a world where paper gold is king and can be manipulated especially in times of stress to make it seem as though everything is OK.

Amazing that Armstrong thinks the US will escape relatively unscathed. But it kind of makes sense.

Ipso – I would think there is zero trust between banks, especially those in Europe. Funny how treasuries and mortgage backed securities are considered good collateral. I guess they will be until they’re not…

Biblical scholars like J.R. Church have found that many of the key events for the Jewish people and for Israel are accurately reflected by the corresponding chapter (year) in the Psalms. They are in the 19th book of the Bible, and have a prophetic significance dealing with Israel for each year in the 1900s, carrying over into the 2000s. For example, Psalm 17 points to 1917 (A National Home for the Jewish People, Jerusalem freed from the Ottoman Empire), Psalm 67 points to 1967 (The Jews return to Jerusalem), Psalm 117 points to 2017 (Trump Recognizes Jerusalem as Israel’s Capital), and so on.

The Psalms of Ascents were sung by Hebrew pilgrims on their way up to Jerusalem, and while ascending the steps of the Temple.

The hidden prophecies in the Psalms of Ascents points to the years 2020 to 2026 being the 7 years of the Tribulation Age. These Psalms prophesy the time of troubles and victory, from the perspective of the Jewish people. We will explore these Psalms in light of this prophecy.

2020 and Psalm 120 – A Cry for Peace

What misery that I have stayed in Meshech,
that I have lived among the tents of Kedar!
I have lived too long
with those who hate peace.
I am for peace; but when I speak,
they are for war. (Psalm 120:5-7)

https://raptureandendtimes.com/2019/09/06/2020-to-2026-secrets-of-the-psalms/

and has had $100K plus. up days. in his account value during this rally–he got heavily invested before the rally started

it might explain what is happening it may not….what I will say is that the economic/political/financial mess in the EU is as said and worse and it is way past time their chickens came home to roost….plus we have the HK situation still festering etc……the Rig is the only reason it hasn’t all gone tits up…so far….Armstrongs models may be right.

Go follow Armstrong Economics. Back at the World Economic Forum in Rome the first of the year Armstrong had said that the models are showing a massive liquidity shortage after labor day as the CONFIDENCE is lost in Europe and in Asia. Capital has been buying treasuries and anything dollar based fleeing the coming collapse the models forecast would start in 2020. Large capital does not trust banks in Europe due to Merkels and the EU Commission policies on bail ins and the models also forecast it will be a miracle if the euro last past 2021 in its present form. Armstrong was told that what Lagarde wants to do is have the euro have an expiration date forcing consumers and businesses to spend or lose it. Armstrong has been warning clients to get out of any sovereign debt especially in Europe as speculators betting Draghi will keep cutting rates as he is trapped has been bidding up prices forcing rates negative and as the ECB cuts, bonds appreciate and they are then flipped setting up the largest bond bubble the planet has ever known. The $100 bill is the most sought after currency outside the US now especially in Europe as capital flees to dollars and treasuries. This has created a collateral crisis in the US as banks and investment banks use treasuries to meet overnight reserve requirements and there is little to be had. Investment banks need overnight funding to meet day to day operations needs as the income flow from financial deals does not always flow on a consistent regular basis. Adding all this up, this forced the FED to intervene all caused by Draghi and his policies in Europe which has created a domino effect causing the massive dollar strength, making the trillions and trillions in dollar denominated loans hard to service especially from the emerging markets, collapsing the banks in Europe who have loaded up on the emerging market debt when Draghi started to charge banks to park capital so they went where yield was all leading to 2020 as we see unfolding now with the collapse in sovereign debt, the pensions crisis there in Europe also as they must hold gov debt with no yield followed by the monetary crisis in 2021/22. I think that sums up the coming collapse very nicely in Europe, Japan, Australia, emerging markets, etc. Didn’t even mention how Brussels Green New Deal is totally destroying the German auto and manufacturing industry along with the rest across the EU, but we’ll save that for another sunny day!

All this will end up causing even more capital to pour into the US and dollar based assets like the US equity markets as capital flees the coming collapse outside the US. The models forecast the US will only be mildly effected because of the strong consumer economy and the shear amount of capital flooding into US assets! The FED’s fear is this will cause even more massive dollar strength and this will collapse not only the international financial system but cause havoc in the US. This capital has been flowing to the US and dollar based assets like the Dow since 2009 and looks like it is not going to let up soon if the models are correct.

Most banks holding a boatload of reserves but are afraid to lend it out for fear of no repayment. This is not a recipe for a good economy!

I wonder how much DB is taking?

https://youtu.be/9JAYgPk3A4A

Sorry folks, but something is rotten in Denmark, er, New York…JMHO

Second Term Repo Oversubscribed As Funding Shortage Keeps Getting Worse

The dollar shortage is worse than anyone expected, and nobody knows why.

I haven’t seen my PCP since I was 75 , almost 5 years ago .
No medications , and feeling fine .

Q2 GDP – 8:30 am EST

Pretty sure another Repo – 8:15 am EST

PM movers?

Alex Valdor – that’s funny. Stay away from the Doc. 🙂

In my days as a student , Mt. Timpanogos was visible from the campus , and once a year a hike to the 12600 ft. peak was arranged . I joined that trek about 50 years ago . It was an arduous climb and on reaching the summit , found an old man by the family name of Oviatt was already there , surrounded by students asking how he had done it . ( He hiked half way the evening before , slept by the glacier lake , and finished the climb in the cool of the morning.) He told us that he was in his mid-80’s and had made the climb every year since he was 50 , except for the year before .

Q; Why not last year ?
A: Because I always had my annual physical in the month before the climb and the Dr. told me that my heart couldn’t take the exertion .
Q: What about this year ?
A: I didn’t go to the Dr.

Gasping for air.  Railroading
the Andes at 11,000 ft.
https://railpictures.net/photo/708597/