{"id":26778,"date":"2019-09-04T12:43:08","date_gmt":"2019-09-04T19:43:08","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=26778"},"modified":"2021-01-04T10:39:08","modified_gmt":"2021-01-04T17:39:08","slug":"this-is-the-fault-line-lessons-from-the-last-3-crashes-lynette-zang","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/this-is-the-fault-line-lessons-from-the-last-3-crashes-lynette-zang\/","title":{"rendered":"THIS IS THE FAULT LINE: Lessons From The Last 3 Crashes… Lynette Zang"},"content":{"rendered":"\n

As the 2008 crisis unfolded, people ran to the safety of\ngold and silver bullion, as witnessed by an extreme spike in coin and bar\ndemand. Central bankers first halted gold sales and began an accumulation phase\nthat is now at the highest levels recorded by gold.org.<\/p>\n\n\n\n

At the same time, central bankers declared their intention\nof \u00e2\u20ac\u0153reflating\u00e2\u20ac\u009d stocks, bonds and real estate and used their money printing\ntools of interest rates and debt growth, to accomplish their stated goals.\nMission accomplished as fiat money wall street products soared to new highs,\nboth nominally and in extremely overvalued valuations. Other than spot gold and\nsilver that is, because a rising gold price is an indication of a failing fiat\nmoney. This truth must be hidden from the average citizen, or they might make\ndifferent choices.<\/p>\n\n\n\n

The normal public, not understanding central bank\nmanipulations and seeking income and growth, used their wealth to take on more\nrisk at the same time they turned away from gold and silver, particularly after\nPresident Trump was elected and his supporters believed his promise of \u00e2\u20ac\u0153growth.\u00e2\u20ac\u009d<\/p>\n\n\n\n

But as markets reflated, wealth was transferred out to the\n1% via stock buybacks, bonuses and dividends, leaving many companies over\nlevered and cash poor and therefore, ill-equipped to service debt levels into\nthe next economic down turn, which by the way, has already begun to unfold and\nis now escalating rapidly.<\/p>\n\n\n\n

Why does this matter to you? As demand increased, investor\nprotections evaporated and much of this debt was been converted into additional\nleveraged products and sold back to you through pension plans, \u00e2\u20ac\u0153institutional\ninvestors\u00e2\u20ac\u009d (those that invest your money) and insurance companies. Who do you\nthink runs the most risk?<\/p>\n\n\n\n

Because over that same time, the base of market buyers has\nbeen shrinking and, at this writing, 80% of all market trading is conducted by\ncomputers, guided by algorithmic formulas. Do you think history might repeat\nitself?<\/p>\n\n\n\n

In October 2010, the NY Federal Reserve studied algorithmic\ntrading fails in 1998 (LTCM), 2007 (Quant Quake) and 2010 (UST Flash Crash),\nthe three fails that brought us within hours of complete financial system\nimplosion. Their conclusions are chilling, primarily because none of the\nprevious causes have been eliminated, they have expanded. Bottom line is that\nthe systemic risk to the global financial system has grown while the ability to\ncover up the next crisis has declined. Therefore, central bankers have been\nvoraciously accumulating physical gold.<\/p>\n\n\n\n

With recent price rises in both gold and silver, some people\nare waiting for price pull backs. While nothing goes straight up or straight\ndown, what is the most likely pricing outcome? The phases of the trend hold the\nclues to the next most likely outcome. In other words, where is the price\naction likely to go. The key is recognizing the patterns and phases of the\ntrend.<\/p>\n\n\n\n

Since the trend cycle holds for all asset classes, examining\nthe spot gold chart against the typical pattern of a trend reveals where we are\nand what we can expect in the future. We are coming to conclusion of the\nsecond, awareness phase in this trend that began in 2004. More specifically, we\nare coming to conclusion of the bear trap that began in 2011 and saw spot gold\ndrop from $1,900 ish to bottom near $1,050 in 2016. Currently, with spot golds\nrecent break out above $1,550, I see no resistance until spot hits $1,800, then\n$1,900. When we break above that, we will have entered the 3rd<\/sup> panic\nphase, which will see spot golds rapid rise.<\/p>\n\n\n\n

For those waiting for a big pull back, I can tell you that I\nam not waiting. Gold is cheap at these levels and availability is ample. In\nother words, currently I can get any gold or silver that I need to support my\npersonal strategy to sustain my current standard of living as we go through\nthis next crisis, as well as, get into position to take advantage of the growth\nopportunities that will most likely present. The longer you wait, the most\nlikely outcome is higher fiat prices and less availability. <\/p>\n\n\n\n

So what are you waiting for?<\/p>\n\n\n\n\n

Slides and Links:<\/p>\n\n\n\n

\"\"
https:\/\/finance.yahoo.com\/m\/35cc662b-8359-372a-8dd2-ea7b92207c4b\/predicting-what-happens-next.html<\/a>
https:\/\/www.bloomberg.com\/opinion\/articles\/2019-08-21\/declines-in-trading-liquidity-could-worsen-next-downturn?cmpid=BBD082219_OUS&utm_medium=email&utm_source=newsletter&utm_term=190822&utm_campaign=openamericas<\/a> <\/figcaption><\/figure>\n\n\n\n
\"\"
https:\/\/www.instituteforsupplymanagement.org\/ISMReport\/MfgROB.cfm?SSO=1<\/a> <\/figcaption><\/figure>\n\n\n\n
\"\"
https:\/\/www.marketwatch.com\/story\/investors-face-a-crisis-10-times-worse-than-the-quant-quake-hedge-fund-warns-2019-08-26?mod=cx_picks&cx_navSource=cx_picks&cx_tag=mw&cx_artPos=7#cxrecs_s<\/a>
https:\/\/www.wsj.com\/articles\/SB118912592144720147<\/a>
https:\/\/www.newyorkfed.org\/medialibrary\/media\/research\/conference\/2010\/cb\/Lo.<\/a>pdf<\/a>
https:\/\/www.imf.org\/en\/Publications\/GFSR\/Issues\/2019\/03\/27\/Global-Financial-Stability-Report-April-2019 <\/figcaption><\/figure>\n\n\n\n
\"\"
https:\/\/www.cnbc.com\/2019\/09\/01\/trumps-15percent-tariffs-on-112-billion-in-chinese-goods-take-effect.html<\/a> <\/figcaption><\/figure>\n\n\n\n
\"\"
https:\/\/www.cnbc.com\/2019\/08\/05\/amazon-ceo-bezos-sells-over-2point8-billion-worth-of-stock-in-a-week.html?__twitter_impression=true&recirc=taboolainternal<\/a>
https:\/\/www.cnbc.com\/2019\/08\/05\/amazon-just-had-its-longest-losing-streak-since-january-2016.html?__twitter_impression=true&recirc=taboolainternal<\/a>
https:\/\/www.cnbc.com\/2019\/08\/15\/cramer-lightning-round-everyone-should-put-10-percent-of-their-money-in-gold.html?__twitter_impression=true&recirc=taboolainternal<\/a>
https:\/\/www.bloomberg.com\/news\/articles\/2019-08-20\/buy-gold-at-any-level-mobius-says-as-central-banks-cut-rates<\/a>
https:\/\/stockcharts.com\/h-sc\/ui<\/a> <\/figcaption><\/figure>\n\n\n\n

YouTube Short Description:<\/p>\n\n\n\n

Since the trend cycle holds for all asset classes, examining\nthe spot gold chart against the typical pattern of a trend reveals where we are\nand what we can expect in the future. I believe we are coming to conclusion of\nthe second, awareness phase in this trend cycle. More specifically, we are\ncoming to conclusion of the bear trap that began in 2011.<\/p>\n\n\n\n

For those waiting for a big pull back, I can tell you that I\nam not waiting. Gold is cheap at these levels and availability is ample. In\nother words, currently I can get any gold or silver that I need to support my\npersonal strategy to sustain my current standard of living as we go through\nthis next crisis, as well as, get into position to take advantage of the growth\nopportunities that will most likely present. The longer you wait, the most\nlikely outcome is higher fiat prices and less availability. <\/p>\n\n\n\n

So what are you waiting for?<\/p>\n","protected":false},"excerpt":{"rendered":"

As the 2008 crisis unfolded, people ran to the safety of gold and silver bullion, as witnessed by an extreme spike […]<\/p>\n","protected":false},"author":6,"featured_media":26797,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1712],"tags":[1246,1282],"class_list":["post-26778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insider-trading-report","tag-fiat-currency","tag-central-banks"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/26778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=26778"}],"version-history":[{"count":4,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/26778\/revisions"}],"predecessor-version":[{"id":29479,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/26778\/revisions\/29479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/26797"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=26778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=26778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=26778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}