Gold World News Flash |
- Max Keiser: Gold And Silver Are Back! Stocks No Longer Stable
- REMEMBER THIS: The Ruling Elite Are Terrified About the Global Political Awakening — ‘The Grand Chessboard’ Architect Zbigniew Brzezinski
- Hard to make a case for a strong dollar now, Barron tells KWN
- The Gold Price Has Progressed Up into its September Trading Channel Closing at $1,240.50
- We Are Now At A Major Tipping Point For The World
- The Two-Pronged Approach To Safe, Consistent Gains
- Jim Rickards: The Fed Will Start QE4 In 2015
- The Real Reason the Global Economy is Such a Mess – and How to Fix It
- Crash 2014?
- Gold Daily and Silver Weekly Charts - Moral Hazard, Policy Errors, and History Repeating
- Dow Drops 6th Day - Longest Losing Streak In 14 Months
- What the Panic's All About
- Excessive debt is collapsing world economy, von Greyerz tells KWN
- Inconceivable
- We Are Now At A Major Tipping Point For The World
- HFT Firm Athena Engaged In Massive Closing Price Manipulation, Called It "Gravy"
- TF Metals Report: The current cap
- Gold Prices Since 9-11
- Flight To Safety - Gold Rises As Stocks, European Bonds Sink
- WORLDWIDE FIAT IMPLOSION: HOW HIGH CAN SILVER GO?
- What Has The Gold Price Done Since 9-11
- Gold Prices Since 9-11
- Up-to-Date with the Big Sell-Off
- Secret Scheme To Manipulate Silver Price - Lawsuits Against Banks Proceed
| Max Keiser: Gold And Silver Are Back! Stocks No Longer Stable Posted: 16 Oct 2014 09:50 PM PDT Alex Jones talks with Max Keiser about what the world economy will do next and what the elite will do to hold onto their money. [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 Oct 2014 09:00 PM PDT from The REAL Institute – Max Bliss: Zbigniew Brzezinski admits that the globalists are in fear of the global awakening that is currently happening across the world. People are waking up to the fact that the governments are all power hungry and corrupt and are not there to serve the interests of the people, but that of the global elite and the multi-billion dollar corporations. This lecture was given about a week ago in his home country of Poland. Here are a few quotes from this fascist globalist: “We have a large public that is very ignorant about public affairs and very susceptible to simplistic slogans by candidates who appear out of nowhere, have no track record, but mouth appealing slogans” “The technotronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.” ― Between Two Ages: America’s Role in the Technetronic Era | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hard to make a case for a strong dollar now, Barron tells KWN Posted: 16 Oct 2014 08:37 PM PDT 11:35p ET Thursday, October 16, 2014 Dear Friend of GATA and Gold: Mining entrepreneur Keith Barron tells King World News tonight that "it's very difficult to make a case for a strong-dollar policy right now." He expects the Federal Reserve to return to "quantitative easing." An excerpt from the interview is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/16_W... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London http://www.minesandmoney.com/london/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Has Progressed Up into its September Trading Channel Closing at $1,240.50 Posted: 16 Oct 2014 07:33 PM PDT
The gold price has progressed up into the trading channel it fell out of as September began. Crossing $1,237 resistance helped, but now gold must conquer $1,260. All this pales next to $1,296, which is the half-way point of the gold gain from 2008 to 2011. Volume yesterday, by the way, was huge. The big challenges for the SILVER PRICE are $17.60 and $18.00. Right now, $17.75 has it stalled, but $18.00 makes the decline from mid-September look like an inverted head and shoulders, with a neckline at $18.00. Both silver and GOLD PRICES will move higher, soon. I would buy some. Well, I already have. I saw a chart that really helped put things in perspective. Stocks have really gained against silver and gold since 2011, but look before that. Stocks lost about 85% of their value against gold and 90% against silver from 1999 and 2001. Earlier you bought, better off you are, but stocks' rally since 2011 has only been an ordinary reaction, and early gold and silver buyers still have strong profits. But the latter half will be better than the first, and stocks will lose another 85% to silver and gold before the metals bull market ends. Sorry I was short on details yesterday, but I was short on time. The mess in the bond market yesterday really was a throat-crusher. Yield on the 10 year treasury fell as low as 1.86% at one point. It was the largest one-day fall in yields since Lehman Brothers bankrupted in September 2008. If that doesn't grab your attention, it ought. And oil crashed for the second day running. Atop all this comes a storm of bear market news: Ebola, Ukraine, Middle East, ISIS, Greek stocks crashed 9%, bad winter forecast. Nasty. I was a little irritated yesterday, and when I am I tend to blame things on the Nice Government Men. We know they're there, but like the Yeti, we can only follow their tracks in the snow. But given that Old Bulls Die Hard, it could have been speculators thinking, "That's dropped enough! Time for me to jump in for bargains." That's possible. Yeah, sure. I also find it tough to parse that gold has not yet caught some bid in this turmoil. Oh, sure, gold has labored away and steadily if not spectacularly climbed. But it keeps pushing against the ceiling. That makes me suspicious, although I'm sure natural causes might explain that, too. (Sure -- like the Abominable Snowman has been selling?) Okay, Okay, I'll straighten up, I promise. Just this little added piece of data. The stock bust is propagating internationally. Add these to the casualty list, all below their last low and below their 200 DMAs and looking sick as a dog hawking up poisoned meat: French CAC German DAX European STOXX Dow Jones World Index Japanese Nikkei London FTSE Seoul KOSPI Now, today's markets: US DOLLAR INDEX has established an unarguable downtrend with lower lows and lower highs. Today it lost another 4 basis points (0.05%) to close 85.04. Whoops -- slipped beneath the 20 DMA (85.57). Nothing suggests this downtrend has turned around yet. Yen backed off today, 0.32% after piercing the 50 DMA (94.32) yesterday, and closed 94.06. It rallieth still, but is liable to run into trouble at the bottom of the former resistance range, 96.  And don't you all think for a minute the Fed is finished with Quantitative Easing. If stocks fall enough, they'll start printing that money so fast it'll jerk a knot in your neck. The Fed follows, it doesn't lead. And while some of the benighted world may count central bankers as celebrity rock stars, the truth is they're just a bunch of chunky, clueless academics or worn-out banking apparatchiki. That's what so frustrating about watching them, it's like being basketed to death by a WalMart greeter -- No, No! That's an insult to WalMart greeters. They would never hit anybody with a basket. Stocks didn't fall today, at least, not much, and from where they've been the last 10 days, that's success. Dow lost 24.5 (0.15%) to 16,117,24, but the S&P500 gained 0.27 (0.01%) to 1,862.76. Stay tuned: more crash will come, and deeper.  The Dow in Gold continues to plunge/plummet/nosedive. It has crashed through the top of the even-sided triangle it broke out of in September. Then it made a top at G$295.19 gold dollars (14.28 oz) on 3 October and has plunged straight down ever since, back into that triangle and today almost through the triangle. It only stopped at the lower boundary and the 200 DMA (G$267.29 or 12.93 oz). That lower boundary is also the uptrend from August 2013. You can look at the chart on the right: Dow in silver has plunged, too, since its 3 October high at S$1,305.57 silver dollars (1.009.78 oz). Down today another 0.34%, it has now crashed back into the rising wedge formation it "threw over" from. Nearing the 50 DMA (S$1,181.89 or 914.12 oz), it still stands relatively higher than the Dow in Gold. 200 DMA lies beneath at S$1,088.83 (842.14 oz). Chart is on the left: Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We Are Now At A Major Tipping Point For The World Posted: 16 Oct 2014 04:06 PM PDT Today one of the legends in the business warned King World News that the world is now at a major tipping point. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also discussed what is happening with the major markets and Ebola. Barron: “We have slowdowns in Europe and in America. I said to you about a month ago that there would be some sort of exogenous event that’s going to knock this market sideways. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Two-Pronged Approach To Safe, Consistent Gains Posted: 16 Oct 2014 03:46 PM PDT We have a chapter on the book on investing, and we make reference to a Forbes magazine cover in 1975 when inflation was raging in this country. A block of ice in the desert, an umbrella over the block of ice saying, "How to protect your money and assets in a time of terrible inflation." We come to the truth in the first paragraph, there's no way to truly protect everything, and those who tell you they can, watch out. And so, what we recommend is we recommend you should have gold, but gold coins. Gold mining is like any other stock. Gold mining stocks, you've got to do a lot of homework. They're not all the same, and they did not participate the way the gold itself did, so have the gold coins, but it's not so much an investment as an insurance policy. So the worse the coins do, the better the rest of your portfolio will probably do. And so – yes, you have TIPS — inflation, adjusted bonds, and the like. Again, insurance policy, but in terms of investing, unless you have the time to do real homework, you should go – we recommend for index funds. Emotions are your enemy. Which is why individuals constantly, as a whole, underperform the market, because they get giddy when things are good, and they bail out when things are bad. Everyone says, "I'm a long term investor," or "I'm a disciplined investor." You are until the market goes down, then panic sets in. Oh, my god, is it too late to get out? Classic example, 2008, 2009, one of the worst bear markets ever, over half – 50-60 percent portfolios wiped out. Jokes about 401ks becoming 101ks, and a lot of people said, "I can't stand it anymore, I got to take some money off the table what's left." Then in March of 2009, because of what congress did on changing a crazy bank regulation-counting rule, stocks turned. Now they have more than doubled since then. How many people who took money off the table in that bare market, put it back in when the market turned? Not many. So understanding human nature, it's like a diet. Don't eat so much. Yeah, easy to say, hard to do. So what we recommend is you take a two-pronged approach. For your retirement money, use index funds. Low-fee, low-cost index funds, like Vanguard. Some other firms will have them, like Fidelity, you can get a cheap index fund. And put a certain amount in quarterly, weekly, monthly, whatever you wanna do. Make it constant, ignore the ups and downs, and ride the market. Amazingly, in America, the stock market is your friend if you let it. Because when it goes down, you end up buying more shares if you're putting in a constant amount, so when the market turns, you get more of a boost. So your retirement side, use index funds. For your inner Buffet side, use the non-retirement portfolio. And there, again, other than meeting your own particular needs – and family situations and business situations are different, that's why you need the advice. But for the non-retirement part of your investment activity, then you can try – you may have a knack for startups, realizing most of them don't work out. You may have a knack for picking stocks, or you enjoy going in and out and taking piece here and apiece there. So whatever your proclivities are, we cite a book by one of our people here at Forbes, Matt Schiffrin – next door Warren Buffets, people you haven't heard of who have done fairly well in the market through various disciplined approaches. So that's where you should do it. But always remember, emotions are your enemy, and I think it was Charley Ellis who said in the book, you should approach investing like you should play tennis. When it comes to tennis, he said, forget about going to Wimbledon or the U.S. Open, except as a spectator. So when you play, don't try to be fancy and do these fancy shots, just try to focus on getting, he said, the ball over the net and within the lines. Focus on that, and you'll do just fine. So it's the same thing with investing. You're not going to become a billionaire. Maybe you do have the Buffet in you, but most of us don't. You recognize that, be honest with yourself, you'll end up doing very nicely and you'll beat most money managers. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jim Rickards: The Fed Will Start QE4 In 2015 Posted: 16 Oct 2014 03:12 PM PDT Best-selling author Jim Rickards joins Kitco News to speak about gold's recent price action. "To me, gold is a form of money […] Every currency in the world, including gold […] are down against the dollar," he says. "So I don't really think it's a gold story, I think it's a dollar story." Rickards... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Real Reason the Global Economy is Such a Mess – and How to Fix It Posted: 16 Oct 2014 02:32 PM PDT The global economy is a mess today because most economists, bankers and political leaders don't understand that most basic of subjects: money. When it comes to monetary policy, they have it backwards, thanks to the misbegotten ideas of John Maynard Keynes. Before Keynes and like-minded peers, economists understood that the real economy was the creation of products and services. Money was the symbol economy. It represented what people had produced. It was a facilitator of commerce. Money reflects what we do in the marketplace. But… Keynes posited the exact opposite. The ability of people to trade with one another is how we achieve a higher standard of living. Money measures wealth; it is not wealth itself. It is a claim on products and services that people have created. That's why counterfeiting is illegal; it's thievery. But when government does this, it's called quantitative easing, or stimulus. Money reflects what we do in the marketplace. But instead of recognizing that basic truth, Keynes posited the exact opposite. To his way of thinking, money controls the economy. Change the supply and you can change economic output, just as a thermostat controls a room's temperature. Government, not the marketplace, is the real driver of commerce. Other "economic actors," such as investors, venture capitalists, entrepreneurs and business executives, are secondary; they merely respond to the prompts of government officials and central bankers. (While monetarists focus exclusively on the money supply, Keynes thought it useful to employ fiscal tools, such as spending and taxes, to help steer the economy. He and his acolytes, however, had virtually no concept of taxes being a barrier or hindrance to commercial activity; they simply saw them as a way of controlling an economy's total purchasing power, or "aggregate demand.") Keynes did share one crucial view with the classical economists: They both saw the economy as a machine that should run smoothly. So-called business cycles — booms and busts — were phenomena to be studied with an eye toward eliminating them. Classicists thought more "perfect competition" among businesses, minimal government regulation, prudent levels of government spending, a gold standard and low taxes, along with combating unsound banking practices, would do the trick. The cult of Keynes thought that free markets were inherently unstable, capitalists were their own worst enemies, and wise government officials, like Keynes, were necessary to save business people from themselves. Get the government controls right — primarily monetary — and the economy would purr smoothly forever after. Joseph Schumpeter thought both the classicists and the Keynesians were utterly wrong in looking at the economy as if it were a clock. To him "equilibrium" didn't exist. The marketplace was always changing; the pace would vary, but things never stayed still. New methods, inventions and the constant rate of improvement of existing things meant that government officials could never run an economy the way one drives a car. The only single economy is the global economy. Yet Keynes assumed the British economy could be treated as if it were an isolated entity. Too many countries today formulate policies under a similar assumption. The Forbes 400 list of the richest Americans and our list of global billionaires demonstrate that Schumpeter had it right. "Economic actors" are the drivers. Government can either impede their activities or create an environment in which they can rise and flourish. This would seem self-evident. Yet economies all over the world are in trouble. Government leaders and economists galore talk about monetary policy as if it could rev up economies that are staggering under excessive taxation, suffocating regulation and massive government spending. The only single economy is the global economy. (Remember, government doesn't create resources. It gets them through taxation, borrowing or inflation, which is — Keynes got this right — another form of taxation.) Most governments loathe the truth that the people on our lists are essential to prosperity and a higher standard of living. Government wants the benefits of what such people create, but it doesn't want anyone to get rich from the creating. Regards, Steve Forbes Ed. Note: The truth can be difficult to stomach. Which is why governments tend to shy away from it… especially regarding matters of money. The Daily Reckoning seeks to do the opposite… bringing you an honest and unfiltered view of the world of money from the experts who know it best. As an example… Managing Editor, Peter Coyne recently traveled to New York to interview Steve Forbes at his 5th Ave. office. The resulting discussion provided a unique perspective on the financial markets that could very well shape your own investment approach. Take a look at it for yourself, right here: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 Oct 2014 01:29 PM PDT Is It Fair to compare this sell off to the Great Recession of 2008 and 2009? Sort of, Kind of, and not really. No Baby, No bathwater, not yet. Let's check the tape. SP500 at the peak of the "unrest" in the crisis was at 666.79, March 2009. Dollar index (DXY) during the same week was 89.522. Conversely, March 2008 DXY was at 70.698. SP500 was 1325.61 during the same time period. The high for the SPX before the crisis was 1578.11. From the high to the low of the crisis the SPX index fell 57.74%. (1578.11-666.79/1578.11) Crisis SPX volatility
The DXY increased 26.63%. (89.522-70.698/70.698) DXY crisis volatility
Let look at the current situation, numerically. High of the SPX before this sell-off was 2019.26. Let's suppose we close near the 1850 levels. From this recent high to current levels, we have a sell-off of 8.38%. Apples to Apples, we have about 1/6 of the move from 2008. Recent SPX volatility
Recent DXY volatility
Let's bring the dollar back into the picture. We can infer that the DXY was at 78.906 (May 8, 2014) October 3, 2014 the DXY hit a high of 86.732. The increase in the DXY was 9.91%. The recent increase is 37.21% of the move during the crisis of 2008. Equating the DXY increase with the SP500 decrease (26.63/57.74) we get a factor of .4612. Equating the current situation (9.91/8.38) we get a factor of 1.1826. In order this market to react in a similar way as in 2008/2009 we would need the SPX to move 21.49% lower from the high of 2019.26. This would mean the SPX would need close at 1585.32 to make the equation work. And yes, this would put the index in a bear market. Economically and philosophically speaking, the two situations are difficult to equate. The Great Recession, The Crisis of 2008, The 2008 Depression, whatever you want to call it, the impedance for the event was on several fronts. Over bloated lending mechanisms, consumer mortgage based debt, Asset Bases Securities (ABS) euphoria, popularity of Collateralized Debt Obligations (CDO), rampant involvement in Credit Default Swaps (CDS) by institutional and Hedge Funds. At the peak of this euphoric period, the notional value of ABS, CDS, CDO held by investors was 14-16 times global GDP. To complicate matters, the internals of CDO's held highly suspect securities and reaped the benefit of high ratings from trusted analysts. These CDOs found their way into balance sheets of banks, funds, and government entities. The crisis was not only a perfect storm of complication and insolence but involved multiple industries and worked perfectly into the disruptive nature of events. Since then we witnessed a deleveraging by investors across the globe. The perception of risk and ratings on securities has changed. BASEL III has now entered the picture and financial institutions have revamped their Tier 1 ratios to comply with the new regulations. As a side comment, perhaps this is why we have a bid in the 10 year US notes. But that is a topic for our next article. Let's return back to the present. Do we have a market addicted to QE? Yes. Commodities, Energy, and Raw Materials have dropped significantly in recent weeks. What is this reason behind this drop? Potential recession in Europe, Chinese economic slowdown, OPEC countries jockeying for position to gain market share? Are these inter-industry, potentially disruptive events? Not sure, yet. Putting things into perspective: Here is a slight philosophical and macroeconomic opinion on developed G8 category economies. No matter where the leading economic are pointing to, a developed economy has a set amount of implicit activity to sustain some level of growth. Short of a cataclysmic or debilitating event; i.e. a full pandemic EBOLA outbreak that has infiltrated a New York, London, Paris, etc; economic activity will churn to some degree to sustain some semblance of an isolated GDP. Let's recap: We do not have a banking crisis on our hands. We do not have a systemic financial crisis. We do have a softening of global macro-economic growth. Certainly, the recent memory of the crisis conjures up unpleasant and extremely volatile conditions. A check of oil: Although we did not provide analysis of oil in this article, suffice it to say that oil's low during the crisis of 2008/2009 was $33.2. The high was $147.27. This current oil swoon took us from $107.21 to current levels of $81.66. Certainly, this has been a tighter range of momentum. The dovetail risk: EBOLA. This is the only non-quantified aspect of most trader's models and algos. This would be a very difficult scenario to quantify with respect to markets, domestic and global economies. Since we live in an interconnected world, the fact that EBOLA has reached industrialized countries should not be a huge surprise. The objective is to quantify the potential disruptive nature of EBOLA on society and the functionality of economies. Could this be the proverbial Black Swan? Maybe. From a social and humanitarian perspective, this is the last thing we need. This is the possible inter-industry, inter-global economic disruptive event. If we continue to receive news that EU countries are at the ready for possible QE-like actions and "dovish" sentiment from the US FED, we will most likely avoid a major relapse of the macro markets. The proverbial "bid" in the market. We will certainly continue with the volatility but instinct and a bit of history dictates that rational thought should supersede "fear", just don't forget about EBOLA.
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| Gold Daily and Silver Weekly Charts - Moral Hazard, Policy Errors, and History Repeating Posted: 16 Oct 2014 01:21 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dow Drops 6th Day - Longest Losing Streak In 14 Months Posted: 16 Oct 2014 01:08 PM PDT An ugly dump in stocks early on sent all the major indices to yesterday's lows (and bond yields to yesterday's lows) but for a smorgasbord of reasons (pick from: Bullard "QE4", jobless claims, industrial production, oil rising, lack of Ebola panic, oh and POMO) stock performed the ubiquitous bounce and extended gains quite handsomely before fading back in the afternoon. Volume was considerably lower than yesterday but solid (driven mostly by the dump). All major asset classes ticked together all day with USDJPY, Treasury yields, stocks, and oil all rising with one another. The USD was flat (despite some intraday kneejerks) as were gold and silver. Copper slid lower as oil jerked dramatically higher intraday before falling back (holding above $82). VIX fell modestly to around 25.5. Once again early manic-selling led to late buying panic (but the volume buying was dramatically lower). The Dow closed red for the 6th day in a row - longest losing streak since Aug 2013.
Russell & Trannies were the best performers on the day as the major indices all closed around unchanged despite the best effortsof JPY...
The weakness in stocks (during the European session) is evident from futures...
Ramp volume (which lifted S&P Futs back to VWAP) was weak relative to selling volume
Sectors saw the worst first today as Energy rebounded...
Everything was nicely coupled today...
A very big swing in HY CDX today (looks like hedges being unwound and managers reducing risk into the rally)
VIX decoupled again at the close (same as the last 2 days)...
The USD kneejerked higher and back down around EU and US data to close very marginally higher (-0.9% on the week)
Treasury yields rose 3-4bps on the day - across the curve
Oil surged (but faded back), gold and silver flat, copper lower...
Charts: Bloomberg Bonus Chart: GOOG....
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| Posted: 16 Oct 2014 11:47 AM PDT Stock markets are sinking for nothing. And everything... As RON BURGUNDY said in Anchorman, writes Greg Canavan in The Daily Reckoning Australia, "Boy...that escalated quickly. I mean that really got out of hand fast." Indeed it did. It was a wild night of trading on US markets Wednesday. The S&P500 was down 3% at one point, before finishing just 0.8% lower. US Treasury yields plunged on fears of lower economic growth while gold momentarily surged $25 an ounce and closed out the session up nearly $20 an ounce. An afternoon rally saved Wall Street. Apparently – and this is really pathetic if there's any truth to it – rumours surfaced that Janet Yellen thought the US recovery was on track, despite worries coming from Europe. There were no such comments from Mario Draghi in Europe. As a result, European stocks took a beating. French and Spanish stocks fell more than 3.5%, while German and British bourses fell nearly 3%. But the rally in the US came after Europe closed for the day. So what's all the panic about? Nothing in particular, it seems. Or nothing and everything, all at once. These panic liquidations represent a psychological shift in trader positioning. It's representative of complacency giving way to risk aversion. And it has given way big time in the past few weeks. You can see this change in the volatility index, the 'VIX', in the chart below. Also known as the fear index, you can clearly see the 'fear spike' since the start of October. This comes just a few months after volatility levels were the lowest since early 2007.  In other words, something has clearly changed in the mindset of the market. In the short term, it's probably gone too far...and you can expect to see a rally soon and a diminishment of the current high levels of fear. But you should take the surge seriously. This is the highest level of fear since the Euro crisis of 2011. Except now there's no discernible crisis. That's the worrying bit. The market is saying that something is wrong. It's not immediately apparent, but something isn't quite right. Maybe it's fear of the effects of a slowing global economy...an economy that has a truckload more debt weighing on it than it did before the last downturn. The Telegraph in the UK reports:
Yep, debt levels are a major problem. And they become a very big problem when economic growth slows. That's because to service debt, you need to generate growth. When growth stagnates or falls, the debt servicing burden becomes a problem. Debt-to-GDP ratios rise and there is less money left over in the economy for investment, wages and consumption. Debt, especially unproductive government debt, has detrimental long term effects on an economy. Let it grow large enough and it will eventually choke an economy into recession/depression. That the only apparent response to a slowdown in a debt-based monetary system is to increase debt levels tells you something is seriously wrong with the world's system of 'wealth creation'. The only question now is how long it will take the Federal Reserve to start back-tracking on its 'interest rate hike for 2015' talk. After they do that, I wouldn't be surprised to see them dip into the QE playbook...again. The big question though, it whether it will be too late to inject another round of confidence into the speculating community. They're wheeling Janet Yellen out to speak at the end of the week, so we may get an idea of just what the Fed is thinking. Yellen must be careful to retain the market's confidence. That the US Federal Reserve has no idea what it's doing is beside the point. What's important is that the market thinks the Fed knows what it's doing. Yellen must keep this con game going at all costs. Good luck with that. When you've got a bunch of panicked, slobbering trader yahoos in your face desperate for some sign that you've got it all under control, any minor slip-up can be dangerous. When traders panic, liquidity disappears in the blink of an eye. That's because confidence creates liquidity, and fear destroys it. And right now it's the fear of huge debt levels consuming economies that is weighing on traders' minds. Why it's happening right now, when the issue has been around for a while, is irrelevant. The important point is that the punters are beginning to wake up to the risks. The only question is how much longer the Fed can continue to pull the wool over everyone's eyes. Can another bout of QE do the job for another six or 12 months? | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excessive debt is collapsing world economy, von Greyerz tells KWN Posted: 16 Oct 2014 11:38 AM PDT 2:35p ET Thursday, October 16, 2014 Dear Friend of GATA and Gold: Excessive debt is pushing the world's economy toward collapse, Swiss gold fund manager Egon von Greyerz tells King World News today, adding that governments will not be able to buy enough assets to maintain equity values. An excerpt from the interview is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/16_T... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Own Allocated -- and Most Importantly -- Zurich, Switzerland, remains an extremely safe location for storing coins and bars of the monetary metals. If you do not own segregated physical coins and bars that you can visit, inspect, and take delivery of, you are vulnerable. International diversification remains vital to investors. GoldCore can accomplish this for you. Read GoldCore's "Essential Guide to Gold Storage In Switzerland" here: http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland Email the GoldCore team at info@goldcore.com or call our trading desk: UK: +44 (0)203 086 9200 -- U.S.: +1-302-635-1160 -- International: +353 (0)1 632 5010 Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London http://www.minesandmoney.com/london/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 Oct 2014 11:33 AM PDT Submitted by Lance Roberts of STA Wealth Management, Just recently one of the greatest fairytale movies ever made, “The Princess Bride” had its 27th anniversary of its release. If you have never seen the movie, you are missing one of the greatest classic adventure tales ever made and something that you will enjoy watching with your children. What does this have to do with the financial markets? Just hold on a second and watch this clip first so you will have the right context for where I am headed. This is the “frame of belief” that pervades in the financial markets currently. A correction of magnitude is currently “inconceivable” as the U.S. is now “clearly” on a trajectory towards stronger economic growth. As Russ Koesterich from Blackrock stated recently:
First, the U.S. is hardly showing evidence of real economic strength outside of a “bounce” from the Q1 drawdown and the push from the Fed’s liquidity interventions. This is the same continuing pattern of the “start and stumble” recovery that we have witnessed since the end of the financial crisis as shown in the chart below.
Notice, that absent Central Bank interventions, the economic composite index has failed to show organic, self-sustaining, economic recovery. Furthermore, even the recent “surge” in economic growth has failed to push the index neither to levels higher than the initial recovery bounce nor to levels more consistent with previous economic expansions since 1974. With the Fed’s latest iteration of liquidity injections ending this month, the true test of whether the economy is “recovering” is yet to be seen. Secondly, the recent decline in inflation expectations, commodity prices, and the rising dollar (which will impact exports and corporate profits), all suggest the economy is too weak to stand on its own. Those issues are already showing up in rapidly declining earnings momentum and expectations, as shown in the chart below from Societe Generale, does not “jive” with the near vertical ramp in recent manufacturing surveys. Very likely there will be a rapid deterioration in the “outlooks” by companies using “global weakness” as a reason to swiftly guide down future expectations. While it is currently believed to be “inconceivable” that the U.S. will be dragged down by global weakness, the markets face a potential re-pricing of “risk” as expectation collide with reality.
As I wrote in this past weekend’s newsletter, the markets are likely already recognizing these issues.
I also outlined the "10-Risks" to the markets currently that will likely continue to weigh on the markets. (Subscribe for "free" email delivery) 1) Eurozone 2) Earnings 3) Deflation 4) Commodities 5) US Dollar 6) Interest Rates 7) Economic growth 8) Technical underpinnings 9) Volatility 10) Complacency Technically ImportantThese “risks” should not be underestimated. Never before in history has the amount of market participation been so heavily driven by computerized trading. Importantly, most of these computerized programs use some form of technical analysis for executing the buys and sells of entire baskets of securities instantly. The major risk to the markets is the break of widely watched support levels that triggers simultaneous selling across the markets driven by computerized algorithms. Such an occurrence, as we got a taste of in the May, 2010 “flash crash,” creates a “vacuum” of buyers which causes extremely rapid declines in prices. Such a drop would break further supports potentially triggering “serial selling” as programs continue to generate sell-orders with no readily available buyers. The real danger of a swift sell-off is the potential escalation of margin calls as leverage is currently near all-time highs. The additional forced liquidations would create a negative spiral leading to a dramatic destruction of capital as “panic selling” eventually ensues. That is what history suggests will happen. While this time is different due to the vast amount of computerized inputs into the markets, the result will likely be the same as it has always been. The chart below shows the key support levels for the markets that are widely watched with the percentage decline from the recent market peak. While it is “inconceivable” that such a decline could occur, it certainly could not hurt to be aware of the levels that being closely watched.
Many of these levels are key psychological support levels such as 1800, 1750, 1700, etc. As I stated above, like dominoes, once a key support level fails prices could quickly escalate tripping one support after the next. As shown, a decline of 18.2% would wipe out all of the 2014 gains and 50% of those from 2013 without technically triggering a “bear market” in the S&P 500. The real problem is that no one knows where the “trigger” point is that escalates a market correction into a full-fledged bear market. Furthermore, with the economy already growing so weakly, a decline of 18% could cause a contraction in economic growth further panicking the “bulls.” The point is that there are many risks investors should not ignore. Making up losses is much harder than reinvesting stored capital once a clearer picture emerges. While the current belief that a correction of magnitude in the markets is "inconceivable," I am not sure that word means what they think it means. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We Are Now At A Major Tipping Point For The World Posted: 16 Oct 2014 11:32 AM PDT  Today one of the legends in the business warned King World News that the world is now at a major tipping point. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also discussed what is happening with the major markets and Ebola.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HFT Firm Athena Engaged In Massive Closing Price Manipulation, Called It "Gravy" Posted: 16 Oct 2014 11:12 AM PDT And to think it was only yesterday when the WSJ unleashed this epic puff piece about HFT shop Hudson Trading with the following bullshit:
Sadly, what makes it complicated is that they are parasites, the only question if they are law-abiding parasites or criminal parasites. Enter the daily exhibit of yet another HFT firm busted for rigging everything it touches. Today'culprit: Athena Capital, which did what every other algorithmic, HFT firm does - rig the market of course, but at least it had a sense of humor about it: Athena called the market-rigging algorithm that "manipulated the closing prices of tens of thousands of stocks during the final seconds of almost every trading day during the Relevant Period" by the very amusing name "Gravy." But remember: HFTs are really your friend - they just provide liquidity and stuff. From the filing:
Case in point:
Shockingly, market rigging is profitable:
The people who bring you gravy: behold the Athena Criminal, pardon, Capital team:
Translated: dear criminals, we are hiring! End result: Athena made millions rigging the market. Which also means the traders on the other side lost millions. So what is its punishment?
A $1 million penalty on $10s of million in profits? Where we come from, that's called a Return On Criminal Investment. Which is also why the parasitic HFT industry will never die until the market finally crashes and the entire system is rebuilt from scratch. Aside from that, remember: the market is, don't laugh, unrigged. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TF Metals Report: The current cap Posted: 16 Oct 2014 10:09 AM PDT 1:10p ET Thursday, October 16, 2014 Dear Friend of GATA and Gold: Bullion banks are capping the gold futures price, overwhelming speculative demand with their shorting, to preserve the downtrend line in the gold price chart, the TF Metals Report's Turd Ferguson reports today. Ferguson's commentary is headlined "The Current Cap" and it's posted at the TF Metals Report here: http://www.tfmetalsreport.com/blog/6233/current-cap CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London http://www.minesandmoney.com/london/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 Oct 2014 08:01 AM PDT The world as we knew it changed after the dot-com crash of 2000 and especially after 9-11. National debt zoomed much higher Stock markets crashed The Fed introduced more “stimulus” and helped create a housing bubble Government became larger and more intrusive Gold, silver, crude, and other commodities rallied | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flight To Safety - Gold Rises As Stocks, European Bonds Sink Posted: 16 Oct 2014 06:39 AM PDT Today’s AM fix was USD 1,241.00, EUR 969.38 and GBP 775.87 per ounce. Yesterday’s AM fix was USD 1,223.50, EUR 967.58 and GBP 768.63 per ounce. Gold climbed $4.40 or 0.36% to $1,237.80 per ounce and silver slipped $0.03 or 0.17% to $17.43 per ounce yesterday. Gold s now nearly 5% above its recent lows and is again acting as a hedging instrument in investment portfolios after sharp falls in stock and many bond markets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WORLDWIDE FIAT IMPLOSION: HOW HIGH CAN SILVER GO? Posted: 16 Oct 2014 05:25 AM PDT "It looks like the end game is possibly starting," says MilesFranklin's Andy Hoffman. "Bond yields around the world have now hit an average an all-time low. The most damning proof yet of QE failure is out there for the world to see. I don't think anyone is left that's actually saying "recovery" any... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What Has The Gold Price Done Since 9-11 Posted: 16 Oct 2014 02:39 AM PDT The world as we knew it changed after the dot-com crash of 2000 and especially after 9-11.
What do the charts show? Since 9-11 national debt (official) has increased from $5.773 Trillion to $17.858 Trillion, an increase of $12.08 Trillion. Note the increasing ratio of gold prices to national debt after adjusting for increased population.
We can reasonably assume that National Debt will continue increasing a $Trillion or so per year. I think gold will rise even faster, with notable corrections along the way, for the next several years, as it has since 9-11.
Note the graph of the ratio of gold to the S&P 500 Index. Both are rising together and gold is now inexpensive (again) compared to the S&P 500 Index, like it was on 9-11. Since 9-11 crude oil prices have gone much higher and crashed lower but on average they have increased with gold prices.
Gold and silver increased dramatically since 9-11, but they corrected after mid-2011. They are now inexpensive, per the graphs, compared to the national debt, the S&P, and crude oil. Note the ratio of gold to silver where peaks in the ratio have been a good indicator of bottoms in the prices for gold and silver
Read Christenson’s newest book “Gold Value and Gold Prices – From 1971 to 2021“
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| Posted: 15 Oct 2014 11:01 PM PDT The world as we knew it changed after the dot-com crash of 2000 and especially after 9-11. National debt zoomed much higher Stock markets crashed The Fed introduced more "stimulus" and helped create... {This is a content summary only. Click on the blog title to continue reading this post, share your comments, browse the website, and more!} | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Up-to-Date with the Big Sell-Off Posted: 15 Oct 2014 11:40 AM PDT The trouble began in 1968 with Lyndon Johnson... THIS is what we're hoping for, writes Bill Bonner in his Diary of a Rogue Economist... A big selloff. Not that we want to see people lose money. What do you take us for? But we've been watching this show for many years now. We want to see how it turns out. To bring you up to date, in 1968, the US switched from gold to the kind of money that grows on trees. That's when President Johnson asked Congress to end the requirement that Dollars be backed by gold. It allowed a huge increase in credit...and debt. Thirty-seven trillion Dollars in excess credit allowed Americans to live beyond their means for decades. They were spending money that nobody earned or saved. Year after year – through Democrat and Republican administrations...through good times and bad – debt continued to build up. And as time went by debt became more important. The US economy...US financial assets...US lifestyles...and the US federal government all came to depend on it. None could survive in its present form if it were forced to live on what was actually earned. When the US stock market crashed in 1987 Alan Greenspan came to the rescue with more EZ money. It was a daring and provocative move; never before had the nation's chief central banker expressed such an interest in stock prices. Previously, Mr.Market was responsible for the stock market; Mr. Central Banker stayed out of his way. And ever since, central bankers have taken upon themselves the grave and absurd task of guarding speculators' backs. That's why the Fed intervened so eagerly in the markets in 2001 and again in 2008. The Fed may not be able to spot a bubble, but it has no such trouble when it comes to busts. And although it has no interest in pricking a bubble, it treats a bear market as though it were an Ebola epidemic. Whenever there is the slightest hint of an outbreak, it rushes in with hoses and disinfectant. That's why we are so interested to see what happens next. Will the Fed come to its senses and let Mr.Market do his work? Will it allow investment mistakes to be corrected quickly and naturally? Or will it meddle once again...and make them worse? Perhaps we will find out soon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Secret Scheme To Manipulate Silver Price - Lawsuits Against Banks Proceed Posted: 15 Oct 2014 05:57 AM PDT The lawsuits against banks that alleges they engaged in a secret scheme to manipulate the price of silver bullion is proceeding. Gold fixing in London at NM Rothschild and Sons began in September 1919 Litigation alleging that Deutsche Bank, Bank of Nova Scotia and HSBC Plc illegally fixed the price of silver were centralised in a Manhattan federal court yesterday. The banks have been accused of rigging the price of billions of dollars in silver to the detriment of investors globally. |
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