If the foundation of the financial system is debt… and that debt is backstopped by assets that the Big Banks can value well above their true values (remember, the banks want their collateral to maintain or increase in value)… then the “pricing” of the financial system will be elevated significantly above reality.
Put simply, a false “floor” was put under asset prices via fraud and funny money.
Consider the case of Coal.
In the US, Coal has become a political hot button. Consequently it is very easy to forget just how important the commodity is to global energy demand. Coal accounts for 40% of global electrical generation. It might be the single most economically sensitive commodity on the planet.
With that in mind, consider that Coal ENDED a multi-decade bull market back in 2012. In fact, not only did the bull market end… but Coal has erased virtually ALL of the bull market’s gains (the green line represents the pre-bull market low).
Those who believe that the global is in an economic expansion will shrug this off as the result if the US’s shift away from Coal as an energy source. The US accounts for only 15% of global Coal demand. The collapse in Coal prices goes well beyond US changes in energy policy.
What’s happening in Coal is nothing short of “price discovery” as the commodity moves to align itself with economic reality. In short, the era of “growth” pronounced by Governments and Central Banks around the world ended. The “growth” or “recovery” that followed was nothing but illusion created by fraudulent economic data points.
We get confirmation of this from Oil.
For most of the “so called” recovery, Oil gradually moved higher, creating the illusion that the world was returning to economic growth (demand was rising, hence higher prices).
That blue line could very well represent the “false floor” for the recovery I mentioned earlier. Provided Oil remained above this trendline, the illusion of growth via higher energy demand was firmly in place. And then Oil fell nearly 60% from top to bottom in less than six months.
As was the case for Coal, Oil’s drop was nothing short of a bubble bursting. From 2009 until 2014 Oil’s price was disconnected from economic realities. Then price discovery hit resulting in a massive collapse.
Moreover, the damage to Oil was extreme. Not only did it collapse 60% in a matter of months. It actually TOOK out the trendline going back to the beginning of the bull market in 1999.
This is a classic “ending” pattern. Breaking a critical trendline (particularly one that has been in place for several decades) is one thing. Breaking it and then failing to reclaim it during the following bounce is far more damning. We’ve just reclaimed the line a week or so ago. But unless we hold here, Oil will be dropping down to $30 per barrel if not lower.
In short, the era the phony recovery narrative has come unhinged. We have no entered a cycle of actual price discovery in which financial assets fall to more accurate values. This will eventually result in a stock market crash, very likely within the next 12 months.
For several months I had considered investing in Fancy Colored Diamonds. I heard all the negative jargon about unscrupulous people in the diamond business and how you could be taken to the cleaners, sort of speak. However, I called Northern Cross Diamonds and spoke to Stephen who is the owner. My experience with him from the early process to the actual purchase of a Fancy Colored Diamond from him was quite a journey. He urged me before buying the diamond to do my own due diligence by comparing the price and quality. Needless to say I did not find one of like shape, color, clarity or price that would have changed my decision. If you would like to speak to me directly for more information you can get my telephone number from Northern Cross.
I found Northern Cross Diamonds because I was looking for a colored diamond for an engagement ring to propose with. There are not many companies that have colored diamonds but they have quite a few. After considering for a couple of weeks, I decided to contact them to discuss the diamond I was looking at. The guy I worked with, Stephen, was very kind and helped me with the purchase process. I even had to ask them to ship my stone across the world to China. After I received it I had no doubt about the high quality of their products. I appreciate Stephen and Northern Cross to help me to achieve my perfect proposal plan. I am very happy to have done buisness with them and I will definately recommend Northern Cross Diamonds to anyone looking to get married or who would like to add more stones for their collection. Again, thank you Stephen
I have bought several coloured diamonds from Northern Cross Diamonds. I have found that Northern Cross gets me the best prices -- even when the diamonds come from another vendor and are listed with the other vendors at a higher price. Stephen Mitanidis has spent hours of his time educating me on coloured diamonds and helping me to choose diamonds that have the best investment potential. He has also allowed me to trade coloured diamonds that I own for coloured diamonds that I want and has assured me that Northern Cross will help me to sell my coloured diamonds if I choose to do so. If you buy a coloured diamond, I recommend that you consider showing it to your family members and friends. Most of them will be impressed with how it looks and might want to seize the opportunity to buy one or more before the value of coloured diamonds appreciates further.
We accept Credit Card, Wire Transfer payments and provide Free, Fully Insured, Trackable Shipping to anywhere in the world.
All of our diamonds are Guaranteed Natural Coloured are GIA certified and 100% Conflict-Free.
Northern Cross Diamonds fully stands behind every single product that we sell. If you are unsatisfied with any portion of your transaction we will provide a 100% refund of our product within 30 days of purchase. No questions asked and no obligations. That is our promise to you.