Revolution on the horizon in the US

During the last decade, we witnessed militarisation of the police force in the United States. All those measures are in line with optional introduction of martial law during next crisis – which will be worse than this from 2008. Police training to pacify violent rioters yields unexpected results.

Since the 2008 crisis, PIIGS’ financial problems are getting worse. I want to highlight that the banking sector is the one with the biggest risk of insolvency. During recent months I wrote few times about bad situation of Italian banks. While mainstream media focus on everything but the facts the situation doesn’t improve – a few days ago strictly financial matter evolved into a political quarrel. Matteo Renzi – Italy’s PM – accused the head of the ECB Mario Draghi of not doing enough for his country with regard to collapsing banking sector. This is how one man can be publicly blamed for the crisis felt by the whole nation.



Since the end of Second World War the whole world could observe the process of unification of Europe. For several decades it was limited by existence of the USSR but Western Europe developed fast and significantly raised standard of living thanks to Europeans coming together. After the Soviet Union collapse the only logical way to expand was east.

Prices of gold and silver now relive their renaissance. Growing uncertainty in the market due to the ever more probable interest rate increase by the FED and another round of global QE made sure that investors turned to metals. Generally, during those uncertain times and an environment of negative real interest rates (when even interest on deposits or bonds cannot catch up with inflation) precious metals record their great surges.



After recent lecture for ASBIRO University, many people started asking me about investing in stocks. Ultimately, it is the main group of assets for 90% of investors. In my opinion, the best question was about investing in emerging markets in the light of the huge wave of QE. It touched the official increase of money supply by central banks and also financial tricks enabling destruction of currencies through the Exchange Stabilization Fund.

Brexit referendum pushed financial markets into turmoil. Even if this is only the beginning of tough times the main reason behind this is definitely not the result of the UK referendum. What we see today is merely a result of financial markets being disconnected from the real condition of the global economy. The red flags signalling overpriced markets (especially in the case of the US) now are raised not only from statistical data but also from experienced investors having a good forecasting record.

Recently Japanese equity markets were hit by an ‘earthquake’. The biggest bank in Japan – Bank of Tokyo-Mitsubishi UFJ (BOTM) – resigned of his primary dealer status. The reason for such decision is the structure of government debt which can be described as a huge speculative bubble. Who inflated it? The Bank of Japan through countless interventions. Tokio is a leader of zero or negative interest rates scaring any small investor away from the debt market. Today even 10-year bonds are sold with a negative interest rate – a guaranteed loss.

It wasn’t long time ago when Swiss had a referendum about universal basic income (UBI). They rejected it. The initiators of the campaign for UBI wanted a minimum salary to be paid to everyone regardless of their age, occupation or level of income. The UBI was aimed to replace pensions and benefits thanks to which numbers of bureaucrats would decrease. One argument for such a change is advancing automation and the end goal is to disconnect salary from work.