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September 26 2017

moneymetals

September 25 2017

moneymetals

U.S. Retirement Market Ponzi Fueled By Record Concentration In Stocks By Young Americans

For the U.S. Retirement Market Ponzi Scheme to continue, there must be a new group of suckers to pay for the individuals who are receiving benefits. Without a new flow of funds, the Ponzi Scheme comes crashing down. Such was the case for the individuals who invested in the $65 billion Bernie Madoff Ponzi Scheme that came crashing down in 2008.

Interestingly, the U.S. Securities & Exchange Commission (SEC) that investigated Madoff Securities in 1999, 2000, 2004, 2005, and 2006, found no evidence of fraud or the need for legal action by the commission. The failure of the SEC to find any wrong-doing by Bernie Madoff should provide Americans with plenty of reassurance and confidence that their 401k’s are the highest quality sound investments in the market.

Regardless, the concentration in equities by young Americans reached a record high since the 2008 financial crisis. According to the most recent data put out by the Investment Company Insititute (ICI), Americans in their twenties who participated in 401k plans, 75% of the group invested more than 80% of their funds into equities in 2015 versus 48% of the group in 2007:

Exposure to equities among 401(k) participants (80+% invested in equities)

In just eight years, Americans in the 20’s age group invested in 401k’s, increased their equity exposure (80+%) from less than a half to three-quarters. Furthermore, those in the 30’s age group increased their equity concentration from 55% to 70% in the same period.

All this means is that younger Americans participating in the 401k Retirement Market have considerably increased their exposure to stocks while net benefits paid out have now gone into the red. I wrote about this in my article, Something Big, Bad and Ugly Is Taking Place In The U.S. Retirement Market:

U.S. private dc plans: contributions vs benefits paid

As we can see in the chart, the Private Defined Contribution (DC) Plans paid out $28.7 billion more than they took in in 2014…. the last year the Investment Company Institute provided data. Simply, Private DC Plans are mostly 401K’s.

Unfortunately, the ICI only has data on 401k net benefit withdrawals up until 2014. However, young Americans invested in the 401k Market have no idea that their funds are being used to pay off those who are retired. Moreover, the record concentration of 20-30’s age group into equities hasn’t been enough to support the 401k Retirement Market as more money is going out than is coming in. That is extremely bad news.

Continue reading: (Source)


August 31 2017

moneymetals

DEATH OF THE U.S. DOLLAR RESERVE CURRENCY... Picking Up Speed

The Death of the U.S. Dollar as the world’s reserve currency will have a profoundly negative impact on the lives of most Americans. Unfortunately, 99% of the population has no clue. The only reason 1% of U.S. citizens understand what is going on, is because the Mainstream media and financial networks have distorted the truth and the reality of our present situation.

What happened in the markets today was a perfect example. Zerohedge published an article today titled, ‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears, and stating the following:

Crazy markets

For a few brief hours overnight – until the bell rang at 0930ET on the NYSE – investors were anxious about North Korea’s most provocative yet missile launch, the terrible flooding disaster in Texas, and lest we forget, the looming debt ceiling debacle. But all of that was instantly forgotten as the machines took control and lifted stocks higher practically all day on a sea of USDJPY-ignited momentum.

Looking at the chart above, we can see that when fear came into the markets during the North Korea missile incident and then the opening of the European markets (shown in the two red boxes), the Dow Jones Index fell as well as the USDJPY, while gold and the U.S. Treasurys increased.

However, after the U.S. markets opened, MAGICALLY everything reversed because the nuclear threat with N. Korea, Biblical flooding in Texas and the upcoming debt ceiling issue no longer mattered. Those of us in the Alternative Media find this quite hilarious that nothing negatively impacts the financial markets anymore. Some have laughed while saying, “If a nuclear bomb had taken out New York City, the stock market would probably go up.” While I doubt that would happen, it is becoming a real joke to watch the financial markets today.

I wrote about the insanity in the markets today and how it has negatively impacted the value of the precious metals in my recent article, The Reason Why Gold & Silver Have Frustrated Investors Since 2011. In the article I posted the chart below, by a Deutsche Bank analyst Aleksandar Kocic, on why the Markets Broke In 2012:

Figure 12: economic policy uncertainty index and vix

The description of the indicator above may be a bit difficult to understand so that I will simplify it. The BLUE LINE represents the “Economic Uncertainty Policy” (EPU index) shown by the frequency of articles in ten leading US newspapers that contain three of the target terms: economy, uncertainty; and one or more of Congress, deficit, Federal Reserve, legislation, regulation or White House in the mainstream media. The BLACK LINE is the VIX index, the volatility index (S&P 500). Economic uncertainty printed in articles in the Mainstream Media should correspond with the volatility indicator of the markets (the VIX). 


Continue to the full article (Original Source

August 15 2017

moneymetals

Rising Tensions with North Korea Prompt Safe-Haven Buying

The U.S. may somehow still find a way to get involved in a nuclear exchange with communists 26 years after the collapse of the Soviet Union – even if it’s with a backwater country whose rockets tend to explode on the launchpad. The decades-long war of words with North Korea escalated last week.

Most of us stopped paying much attention to the outlandish threats from North Korean dictators long ago. There have been plenty over the years as U.S. administrations, one after another, attempted to police the matter by applying sanctions directly and pressuring China to do the same. It is time to tune back in.

North Korea’s apparent nuclear capability, of course, makes this situation different than many of the other wars the U.S. has been waging with Third World countries. But, the stakes are getting higher generally as other major world powers have begun pushing back. Our government’s attempt to overthrow Bashar al-Assad in Syria has pitted the U.S. against Russia. Now China is threatening to engage if the U.S. attempts regime change in North Korea.

Chinese officials declared late last week that they will not tolerate a pre-emptive U.S. attack. They made the following statement via an influential state run newspaper on Thursday:

"If the U.S. and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so."

The Chinese have also warned North Korea’s leader, Kim Jong-un, against attempting a first strike. No surprise, China wants to avoid a conflict in North Korea which upsets the status quo and leads to even larger U.S. presence in the region.

North korean rocket

President Trump’s rhetoric on the matter has been a match for Kim Jong-un’s in terms of hyperbole. He tweeted the U.S. military is “locked and loaded” Friday. If North Korea performs another missile test, or attempts an actual strike, the president is building the expectation he will act. That makes it harder to walk back.

Continue reading....

July 27 2017

moneymetals

Something Big, Bad And Ugly Is Taking Place In The U.S. Retirement Market

While the highly inflated value of the U.S. Retirement Market reached a new high this year, something is seriously wrong when we look behind the scenes. Of course, Americans have no idea that the U.S. Retirement Market is only a few steps from falling off the cliff, because their eyes are focused on the shiny spinning roulette wheel called the Wall Street Stock Market.
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