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The Biggest Debt Bomb in History and the Fuse is Lit…
a 3-part report from Elliott Wave International

By Elliott Wave International Whatever your politics, creed or nationality — we can all agree that a huge catalyst for the 2008-9 global financial meltdown was the universal binge of bad credit.    Continue reading »

SEC Commissioner Stein fed up with criminal waivers for TBTF banks – writes a scathing dissent

EDITORIAL It is no secret in the financial world that the role of the Securities and Exchange Commission (SEC) is largely symbolic these days. The SEC’s mission statement says their role is    Continue reading »

IRS says it will return $107,702 illegally seized from North Carolina store owner

If you think your money is safe because it’s in a bank you would be wrong. A North Carolina convenience store owner found that out the hard way when the IRS showed    Continue reading »

Peter Schiff says Bernanke really believes he saved the world from financial Armageddon (audio)

EDITORIAL There are no two people in the business of economic analysis more unlikely to be seen together, much less posing for a photo together, than Peter Schiff and Ben Bernanke. Schiff    Continue reading »

More proof that central banks have declared a “War on Cash” – Greece introduces a surcharge for withdrawing cash

A run on the Greek banks is inevitable as the economy slumps badly and the fear of a banking collapse looms large. But the Greek finance ministers are hoping a substantial “transaction    Continue reading »

U.S. Deflationary evidence continues to mount – trade deficit means US GDP probably negative in the first quarter

Some economists and pundits have tried to blame the West Coast container ship debacle for the declining U.S. export numbers in the first quarter, but denial of a shrinking economy can only    Continue reading »

Are Governments Secretly Preparing a ‘War on Cash’ – just like gold in 1933?
a new report from Elliott Wave International

By Elliott Wave International Ever hear of negative interest rates? Many European banks are already setting them. What it means is that the banks will charge you a fee to withdraw cash    Continue reading »

Deflationary forces strengthening in the U.S. – 2015 store closings mounting

Hundreds of store closings announced in 2014 are turning into thousands in 2015. Both brick and mortar and online stores are being affected. And the delusion that this is a “good thing”    Continue reading »

Recognizing changing social mood is key to understanding why the herd is causing the stock market to fall

EDITORIAL You have often heard me say that it is “endogenous social mood”, i.e., the subconscious mood of the collective herd that moves markets. It’s not news or current events as so    Continue reading »

Anatomy of a bubble – How the Federal Reserve and the U.S. Congress have created a debt crisis of historic proportion

To understand where the stock market is going we first need to understand from where it has come. Let’s start by comparing the currently in vogue macro economic philosophy, Keynesianism, to a    Continue reading »

Inflation vs. Deflation – Part 1
Which one is controlling the fate of America and will it cause the next Great Depression?

By Sannleikur Komist Question: “Most people who believe that we will slip into a depression seem to think it will be caused by inflation brought on by the collapsing of the dollar. Why    Continue reading »

Dow Jones Industrial Average
Baseline Elliott Wave Count from 1964 to 2014

With every great inflation comes an inevitable deflationary correction, economic yin and yang. Elliott Wave Theory is telling us that the point of deflationary reversal has arrived or will very soon. In    Continue reading »

The Creature from Jekyll Island
The End of the Federal Reserve System – Part 1

By Sannleikur Komist Editor I’m going to tell you a story – a story of corruption, deceit, greed and political intrigue. As it turns out, a true story, one stranger than fiction    Continue reading »

 

The Biggest Debt Bomb in History and the Fuse is Lit…
a 3-part report from Elliott Wave International

debt bomb

By Elliott Wave International

Whatever your politics, creed or nationality — we can all agree that a huge catalyst for the 2008-9 global financial meltdown was the universal binge of bad credit.

A huge part of that bad-debt pile was the “don’t-ask-don’t-tell” high-yield bonds — a.k.a. junk bonds — which were used to fund a lot of things, including corporate takeovers.

U.S. Dollar Index
Elliott Wave update for week ending 5/22/2015

U.S. Dollar Index

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By Sannleikur Komist

The U.S. Dollar Index has had a very positive last couple of weeks causing some to speculate that its recent pull back might be over and its juggernaut climb is about to resume. While that option remains a possibility, the probability seems unlikely.

Dow Jones Industrial Average
Elliott Wave update for week ending 5/22/2015

Dow Jones Industrial Average

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By Sannleikur Komist

The Dow Jones Industrial Average was able to set a new all-time high this week, on Tuesday, as anticipated in last week’s update. Still,  it ended the week slightly lower. Moreover, the anticipated possibility that the final Minor degree wave 5 of Intermediate degree wave (5) would form a smaller Minor degree Ending Diagonal Triangle within the larger Intermediate degree diagonal triangle appears to be playing out.

SEC Commissioner Stein fed up with criminal waivers for TBTF banks – writes a scathing dissent

Kara M. Stein

EDITORIAL
By Sannleikur Komist

It is no secret in the financial world that the role of the Securities and Exchange Commission (SEC) is largely symbolic these days. The SEC’s mission statement says their role is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” But everyone knows their “real” job is to protect the financial elite from criminal prosecution when their companies step out of line. Everyone knows that… except perhaps Commissioner Kara M. Stein.

Investing in Europe? Or interested in knowing what’s going on over there?
See these 5 free videos on the State of the Markets in Europe

Investing in Europe

A report from Elliott Wave International
By Brian Whitmer

You know that the European Central Bank has been engaged in an unprecedented 1-trillion-euro quantitative easing effort, right? The goal has been to give European banks more capital. Free money! Well here’s a fact you won’t hear about on financial TV.

You would think the banks would be prospering. Yet, Eurozone bank stocks peaked a year ago, in April 2014 — even as the Euro Stoxx 50 and DAX, Europe’s two flagship indexes, pushed to new all-time highs.

So what’s going on?

Gold: Elliott Wave update for week ending 5/15/2015

Gold

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By Sannleikur Komist

Gold will make one more rally before turning back down in sympathy with other commodities. Stocks will already be down significantly and the dollar will be on the rise again when gold peaks and reverses which will confound precious metal, commodity, and equity investors alike.

IRS says it will return $107,702 illegally seized from North Carolina store owner

mclelland
Dateline: Farimont, N.C., 5/15/2015
Media Outlet: The Daily Signal
Article Headline: Federal Government to Return 107,702 Dollars Seized From North Carolina Convenience Store Owner
Map View:

If you think your money is safe because it’s in a bank you would be wrong. A North Carolina convenience store owner found that out the hard way when the IRS showed up at his bank and seized over $107,000 from his account. Store owner, Lyndon McLellan, had committed no crime, he had simply deposited his earnings into his account in a way that the IRS claimed was “suspicious”.

Dow Jones Industrial Average
Elliott Wave update for week ending 5/15/2015

Dow Jones Industrial Average

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.
By Sannleikur Komist

The Dow Jones Industrial Average is on the cusp of a major reversal of fortune. The Ending Diagonal triangle that we have been watching form for many months is all but complete. When the reversal occurs, the collapse in stock prices will be swift and relentless and will surprise almost everyone… everyone but you, of course.

Big Volatility Shakes Bond Investors — Is the debt bomb about to go off?

debt bombBy Elliott Wave International

The yields on U.S. Treasuries and European sovereign debt have risen sharply in a relatively short time. Bond prices trend inversely to yields — which means debt portfolios have suffered substantial losses.

From mid-April through May 6, yield on German 10-year bunds spiked 47 basis points. Yields on 10-year U.S. Treasuries jumped 29 basis points in just the past week. Click here for a free report which explains why.

Peter Schiff says Bernanke really believes he saved the world from financial Armageddon (audio)

Peter Schiff and Ben Bernanke

EDITORIAL
By Sannleikur Komist

There are no two people in the business of economic analysis more unlikely to be seen together, much less posing for a photo together, than Peter Schiff and Ben Bernanke. Schiff is arguably the most outspoken critic of the Federal Reserve in recent times. That Bernanke would allow himself to be pictured with Schiff is surprising. But then, hubris can make people believe their own sociopathic delusions. In his own mind, Schiff says, Bernanke truly believes he saved the world from economic collapse.

Dow Jones Industrial Average
Elliott Wave update for week ending 5/8/2015

Dow Jones Industrial Average

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By Sannleikur Komist

The Dow Jones Industrial Average may have finally tipped its hand this week. The muddled jumble of waves that has carried the Blue Chips almost sideways for months looks to have completed a rare 9-wave triangle to complete Minor wave 4. Thus the Dow should now make one more slight high before reversing trend to the downside.

10 Year U.S. Treasury Index (yield)
Elliott Wave update for week ending 5/1/2015


10 Year U.S. Treasury Index (yield)

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By Sannleikur Komist

10 Year U.S. Treasury yields are pushing up against a medium-term resistance trend line that, should it give way, will lead to accelerating yields and big problems for stocks, bonds and real estate.

More proof that central banks have declared a “War on Cash” – Greece introduces a surcharge for withdrawing cash

Bank of Greece
Dateline: Athens, Greece, 5/5/2015
Media Outlet: Daily Mail
Article Headline: Greece introduces cashpoint tax in desperate bid to raise revenue and stop run on banks as country teeters on brink of bankruptcy
Map View:

A run on the Greek banks is inevitable as the economy slumps badly and the fear of a banking collapse looms large. But the Greek finance ministers are hoping a substantial “transaction fee” on cash withdrawals will persuade account holders to leave their money in the ailing banks. It is a desperate attempt to help avoid a sovereign bankruptcy and subsequent defaults on debts owed to international creditors.

U.S. Deflationary evidence continues to mount – trade deficit means US GDP probably negative in the first quarter

emptyContainerShip

Dateline: Washington, D.C., 5/1/2015
Media Outlet: Forbes
Article Headline: Ouch! US Trade Deficit Means US GDP Probably Contracted In First Quarter
Map View:

Some economists and pundits have tried to blame the West Coast container ship debacle for the declining U.S. export numbers in the first quarter, but denial of a shrinking economy can only be done for so long before the truth has to be admitted. The U.S. economy is deflating.

Are Governments Secretly Preparing a ‘War on Cash’ – just like gold in 1933?
a new report from Elliott Wave International

War on Cash

By Elliott Wave International

Ever hear of negative interest rates? Many European banks are already setting them. What it means is that the banks will charge you a fee to withdraw cash from their institutions. It’s not on the front page…yet. But it will be.

Some governments, central banks and mega-banks are waging a secret war on cash. They are even talking about outlawing the use of physical currency. This new reality might be closer than you think.