Harvey Won’t Break the Bank Compared to this FINANCIAL NUCLEAR MELTDOWN

Wednesday, August 30, 2017
By Paul Martin

August 30, 2017

As the MSM takes shots at the financial impacts of mother nature, PM Fund Manager Dave Kranzler sets the record straight. The financial nuclear meltdown heating up the markets is so severe that the losses will be catastrophic…

From Dave Kranzler of Investment Research Dynamics

“There are no markets, only interventions” – Chris Powell, Treasurer and Director of GATA

To refer to the trading of stocks as a “market” is not only an insult to any dictionary in the world that carries the definition of “market,” but it’s an insult the to intelligence of anyone who understands what a market is and the role that a market plays in a free economic system. By the way, without free markets you can’t have a free democratic political system.

The U.S. stock is rigged beyond definition. By this I mean that interference with the stock market by the Federal Reserve in conjunction with the U.S. Government via the Treasury’s Working Group on Financial Markets – collectively, the “Plunge Protection Team” – via “quantitative easing” and the Exchange Stabilization Fund has destroyed the natural price discovery mechanism that is the hallmark of a free market. Capitalism does not work without free markets.

Currently a geopolitically belligerent country is launching ICBM missiles over a G-7 country (Japan). In response to this belligerence, the even more geopolitically belligerent U.S. is testing nuclear bombs in Nevada. The world has not been closer to the use of nuclear weapons since Truman used them on Japan. The stock markets globally should be in free-fall if the price discovery mechanism was functioning properly.

To compound the problem domestically in the U.S., the financial system is now staring down a potential financial catastrophe that no one is discussing. The financial exposure to the tragedy in Houston is conservatively estimated at several hundred billion. Insurance companies off-load a lot of risk exposure using derivatives. The potential counter-party default risk connected to this could dwarf the defaults that triggered the AIG and Goldman Sachs de facto collapse in 2008. The stock “market” should be down at least 20% just from the probability of this occurrence. Forget the hurricane issue, Blackrock estimates that insurance investment portfolios could lose half a trillion in value in the next big market sell-off. Toxicity + toxicity does not equal purification. The two problems combined are the equivalent of financial nuclear melt-down.

The Rest…HERE

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