From August 24 article on “Canadian Mine Analysis” Napoleon Bonaparte once offered this wise advice; “Never interfere with your enemy when he is making a mistake.” Napoleon’s theory was proposing that by letting his enemy make a mistake it offered him a better opportunity to defeat his enemy. In a sense, over the last two years we have seen investors  literally throwing away shares of stocks that were selling at multi-year lows offering us the opportunity to buy those shares while they were extremely undervalued.   Our research has suggested for the past two years that we were making major bottoms in gold and silver mining stocks and it has been an ideal time to accumulate them. We had suggested “dollar cost averaging” and wrote articles that appeared on our sites and in publications such as “The Bull and Bear.” Today we are in the early stages of a bull market for many gold and silver stocks incrementally. Some have already seen enormous percentages while others will see a bull market later on as all mining stocks do not move up at the same time.

The Eurodollar futures chart has given a major signal that the short term interest rate regime of the last eight years is under attack and breaking down right now. Yes, the chart action indicates that we may finally be seeing the market warning of a rise in short term rates. Since 2010, the Eurodollar futures chart has demonstrated price support in the 99.17 to 99.25 zone on three separate occasions. Today, Eurodollar futures prices have violated this support zone and are trading at 99.125. For chartists, this strongly suggests that something profoundly different is happening and that the old paradigm that generated the previous trading range environment has come to an end.

The global debt load surges higher and higher, adding to risks to the global financial system. In the next recession, overextended borrowers (whose numbers are large and growing) may be unable to pay on their loans, and debt defaults could mushroom, leading to general systemic financial distress. The total of all forms of U.S. debt, including government debt, business debt, mortgage debt, and consumer debt, is now more than $59 trillion. The great majority of this debt has accumulated in recent decades–and at an accelerating pace–with the exception of the financial crisis of 2008, when lenders were afraid to lend. This unsustainable growth in debt has blown the greatest debt bubble of all time and has put the economy and financial system at risk.