The Greeks voted “no” and should be applauded for their valor! Knowingly or not, their no vote has added extra cards to their hand. They now have more options than they would have had with a yes vote. In fact, Greece still has the only option they would have had with a yes vote (cut a deal for “more aid” and austerity), plus many other which pressure the lenders. I must say, a “vote” coming from the cradle of democracy CONTRARY to what the banksters wanted is a breath of fresh air!
Now what? Greece basically can go down three very different roads. They can use their “new freedom” to either negotiate new aid and restructuring, they can stay in the Eurozone while not paying on their debt and using a new drachma or, …they can go full Iceland! Please understand this, no matter what they choose, their banking system is inedible toast and they cannot pay their debt service let alone the principal. The bottom line is “someone” will have to eat the losses. Whether it be the ECB itself, European banks or whomever, the debt will not be paid and someone, somewhere will have to “lose”. Keep in mind this is happening while liquidity is already quite tight.
It is possible we could see some sort of deal where “the world is saved” and a violent short covering rally in everything ensues. Should this occur, do not be fooled because nothing can nor will be fixed. Can they buy a month or three months time with Greece? Probably but as liquidity is drying up, accidents are more likely to happen. Countering this thought process, Greece does also have an “out” should they decide to turn toward any help offered by Russia and China. If this is the choice, I believe it’s a very good bet that rioting and even a coup may be “helped” from the shadows. I won’t elaborate on this but should it appear Greece is moving away from the West, unrest of all sorts will surely be “stirred” up!
Of their options available, I personally believe they should go “whole hog Iceland”. What is best for Greece for the future would be to put a moratorium on payments and outright default. They would then be forced to issue a new drachma to conduct commerce with. I also believe they should leave the Eurozone and focus trade toward the East where their new drachma would be more likely to be accepted. Greece would be forced to “start over” from ground zero, not a happy prospect but one where at least a foundation exists. The “old” world order will not stand in the long run, it may fall apart piece by piece or all at once.
The piece by piece scenario would include Portugal, then Spain, and then Italy (with France mixed in there) wanting to go down the same Greek road. We very well may see national referendums becoming the new fad. All of these countries will want some sort of relief from their debt as the numbers are clearly unsustainable. Talk of the situation being contained is laughable. So laughable, the whole system could go from “normal” to “over” in 48 hours in my opinion.
Look around the world, China is now down 25+% in just over three weeks. Europe, it’s currency and even the Union itself is in question …and the Federal Reserve needs to do something in the credibility department. What I am saying is this, can the Fed really tighten ANYTHING in the current environment? As I mentioned previously, liquidity is rapidly going away …in an over indebted system this is the most potent of poison! As I see it, a massive dose of new QE will have to be administered just to keep the doors open. Watch for this!
Meanwhile, “we” look like idiots to those we have tried to help. While the credit market is on the cusp of breakdown and full seizure, gold and silver prices got smashed again today. Funny thing though, even though there has been so much “selling”, the U.S. Mint has apparently suspended sales of Silver Eagles! I will ask the question again as I have before, if there is so much “selling” of silver, why can’t the Mint source it to sell? It is their mandate! It is the law (which matters not anymore)!
Are we moving into a zone where COMEX prices will get hit further …while the mint sells nothing until August (if we even make it to August) …and then we see some sort of credit/financial/international event where force majeure is declared? For whatever reason the Mint can conjure …can’t source metal …can’t keep up with demand …or whatever, a suspension of sales does not jibe with massive panic selling of “metal”. Unless of course they say “we are suspending sales because there is no demand”. I am sure a statement like this could be spun as Gospel truth!
Folks, we stand on the verge of the global credit markets coming to a grinding halt. In our current world, NOTHING that we consider “normal” will transact or transpire without credit. Our lives will change literally overnight without credit. We are about to live through a massive wildfire of credit values burning to the ground, gold and silver will still be standing when the smoke clears. It is completely laughable to see gold and silver forced down when the fear of credit collapse is rising. Mother Nature doesn’t work this way, central banks wish she did! I hope you have the will to “see through it”, the coordinated efforts to support paper markets and suppress gold and silver have been truly impressive. The currency of the biggest, most indebted and “brokest” issuer in the world is attracting safe haven bids. I assure you, once control is lost and we go into all out panic, even those pulling the levers will be moving against their own central banks!
Standing watch,
Bill Holter
Holter-Sinclair collaboration
Comments welcome! [email protected]
Bill- You’ve put the pieces together in a “nut shell”!
thanks Big, I do use too many quotation marks huh?
Bill, looks like option #2 for Greece. Plans are afoot for an “alternate” currency, while attempting to stay in the EU.
And, can you believe it? The NYSE has just halted ALL trading of ALL stocks! Computer glitch? Or an “on purpose break” to prevent an all out crash?
One thing for sure, the global markets are in turmoil. The volatility measure is approaching that of volcano and earthquake scale! Something BIG is coming down the pipe, and that right soon. Good luck. Keep stacking, if you can find it!
amazing coincidence the same day China was FORCED to shut down.
Yes. The Shanghai Stock Exchange is down 1,451.07 points or down 28% just in the last 3 trading days. Companies have used their stocks as collateral for margin bets and are now trapped by margin calls! Dumb! Really dumb. Once selling is allowed to resume, there will be blood freely flowing in the streets.
yes.
yes
Hahahaha: Trading halted on New York Stock Exchange due to “technical malfunctions”. Keep them coming, these series of comedic headlines.
coincidence.
I thought everything rather bleak until I checked my garden! I’ve tomatoes just about ripe.
what time is lunch?
read an article recently, which wrnt like …. China believes the crash was caused by US friendly banks, and that they (China) somehow declared war ( to
US)
Maybe this freeze is a defender cuz of a kind of attack
this is a possibility.
Hi Bill
great stuff as normal.
Have a look at the reaction of Tsipras and others to this very accurate speech by Farage….
https://www.facebook.com/UKIP/videos/976145499074007/
Farage the truth speaker.
Let’s all join GIG for lunch and maybe Frange will give a speech.
Let’s all join GIG for lunch and maybe Farage will show up and give us a speech.
sounds like a plan!
Bill,
When the NYSE shut down today for a “technical” reason, I couldn’t help but laugh. That “technical” reason sure kept every one from getting to the exits.
This Ponzi scheme has the perfect set up in that when it’s time to take Joe the plumbers last dime every thing (banks, stock market, credit cards, food cards, ATM’s, etc.) will all not work at once because it will be stated that some one has hacked the systems (Russia or China will be blamed).
Can any one at that point prove that a hacking is not taking place? Of course not. Just kiss your hard earned savings and wealth good bye because it WILL be taken from you !!!
Sad ! Sad! Sad!
It will be TOO LATE to recover in your lifetime!
This is not nice to say, but if you have no gold or silver in your hands, then get ready to bend over because you are getting ready to get it!
am writing about later today.
Bill;
A friend of mine, HP arch. sys’s eng. wrote me this;
Clay Coulter
10:06 PM (4 hours ago)
Al, as we discussed earlier, the “technical glitch” that paralyzed the NYSE today was likely deliberate. I don’t buy the feeble explanations from NYSE officials. I can tell you from my perspective as an Infrastructure Architect with HP, we design around these potential system failures through what we call “highly available” systems. This means that there is redundancy in all systems that could fail. There are multiple power sources, multiple paths for physical data flow, multiple connections to brokers worldwide, multiple pathways to the Internet, multiple devices that control all trading activities and copious monitoring systems alerting on any condition that can threaten the enterprise. Be assured that the NYSE with its critical systems has the best equipment and networks that money can buy. One single “gateway” (a device that connects two different networks together) is not likely to create the havoc experienced today. There would be more than one gateway to a critical network and a faulty one could be routed around in a heartbeat. I don’t know whether a hacker may have been involved and find it curious that the very first reports about the problems include the conclusion that no hacking was involved. I do believe that the duration of the outage was deliberate to slow the momentum of the selloff. And according to one expert, we will likely see more of these “glitches”. I bet we will indeed.
“This is a minor technical issue. We’re going to see more of these in the future,” Angel said.
Angel = James Angel, a finance professor at Georgetown University who has testified before Congress on market structure issues.
I wonder Bill, what Ray Dalio knew about the silver market this past week?
On Monday past, (July 06) he bought 463,000 shares of Silver Wheaton. Looks like the producers have seen their bottom? After being beat up for so long, could it be time to go bargain hunting? Since the juniors have really been ‘thinned’ out!
I think yes.
Looks like all the “exit” doors open only inward. Better not yell FIRE!
this will soon be evident.