Globalization’s

Sinking Ship 

Gold's $1,500 level is 'looking like the new 2020 floor' - Scotiabank

“$1450 was the new hard floor but gold is now firmly in a spot where the risk/reward in being directionally short is not favorable -- $1500 is increasingly looking like the new 2020 floor…,” wrote Scotiabank commodity strategist Nicky Shiels last week.

The Fed Can't Reverse

 The Decline of Financialization and Globalization

For two generations, globalization and financialization have been the two engines of global growth and soaring assets. Globalization can mean many things, but its beating heart is the arbitraging of the labor of the powerless, and commodity, environmental and tax costs by the powerful to increase their profits and wealth. 

In other words, globalization is the result of those at the top of the wealth-power pyramid shifting capital around the world to exploit lower costs of labor, commodities, environmental regulations and taxes. 

As a result, the global economy and financial system are both running on the last toxic fumes of financialization and globalization, the final extremes of exploitation and predation as the pack of predators has exploded in size and influence while the herd of prey has been decimated. 

The prey always seem limitless to the predators, but this illusion expires when suddenly there is no longer enough for the ravenous pack of financial predators. 

At that point, the predators turn on each other. 

That is the narrative that will come to the fore in 2020 and play out in the decade ahead.

 DYI:

When the predators begin to turn on each other through nasty mergers and acquisitions that in turn will fail fighting over the remaining scrapes of the hollowed out middle class gold and silver will move up in price to reflect this new decade long dislocation. Stocks and corporate bonds will fall in value in a multiple cyclical manner.  U.S. government bills, notes and bonds will decline as well in a long drawn out saw tooth manner as the Federal Reserve fights this inevitable decline.  There is a possible one last hurrah left for declining rates breaking the 10 year T-bond yield of 1.37% [July 8, 2016] when our next recession arrives.  However that is speculation as rates are now so low relative to their historical mean.

Market Sentiment

Smart Money buys aggressively!
Capitulation
Despondency
Max-Pessimism *Market Bottoms* Short Term Bonds
Depression MMF
Hope Gold
Relief *Market returns to Mean*

Smart Money buys the Dips!
Optimism
Media Attention
Enthusiasm

Smart Money - Sells the Rallies!
Thrill
Greed
Delusional
Max-Optimism *Market Tops* U.S. Stocks
Denial of Problem Long Term Bonds
Anxiety
Fear
Desperation

Smart Money Buys Aggressively!
Capitulation

DYI