I have been writing about this eclipse for over a month, warning about the potential for war.  Each week I am seeing new reports suggesting an escalation between US and Russian military aircraft over the sea of Okhotsk, the northwestern section of the Pacific Ocean off Russia’s eastern coast.  The Russians took surveillance video of a US B-52 bomber in the Bering Sea area last week.  The first time ever for a US bomber flight off of Russia’s coast.  The signature theme of this eclipse is war and I believe these tit-for-tat military aircraft games in Russian airspace are going to turn into the real deal before the end of the year.
There is another potential outcome of the eclipse – a large financial institution may become insolvent requiring Fed intervention..  Right now the financials are like donuts, they look good but they are so unhealthy.  The financials have an illness all their own.  Their recovery from the March lows is much weaker than the major indexes..  Last September an economic dislocation in the overnight lending caused the Fed to intervene with billions in unplanned QE – reminiscent of the Lehman collapse in 2008.  To go along with the Covid theme here, the banks may need another injection of the QE vaccine.  The solar eclipse is not helpful for the Fed in this regard.  It suggests they are out of step with the rest of the world, the nation, the people, who don’t want to hear about the banks, and are too busy dealing with the sh*t show going on in America at the moment.
Gold will be the ‘tell’ regarding further banking weakness.  I am watching closely near June 26th-29th for gold to make a significant move higher.  July 1st – 17th we will likely see more volatility in the markets.  The Treasury and Fed have their own tit-for-tat going on, which usually brings out Pelosi asking for more stimulus.
Below is my list of potential outcomes with the ongoing sh*t show of 2020.
  • High level of volatility in the markets July and August
  • A big bank disintegrates, or shifts to a different basis
  • Willful powerful change that is disruptive
  • Kicking over the traces, taking off in 5 different directions at the same time.  We have 2 now – Covid-19 and riots.  We will likely have 3 more disruptive events all overlapping each other.  I am inclined to include the Robinhood trading platform as a 3rd event happening now.
  • Established financial institutions that are set in their ways, or not flexible, might be more at risk.
  • New inventions that dramatically shift the economy.
   Karen Starich

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