Gold World News Flash |
- US Government Ups Preparations For Economic Collapse: Readies Troops For a Civil Force
- Gold Remains Weak In This Disinflationary Environment
- Why We’re Ungovernable, Part 12: Trump Is No Longer The Worst Case Scenario
- Gold Price Changes Since 2000 in Various Global Currencies
- Gold Price Change Since 2000 in Various Global Currencies
- Presidential Crimes Then And Now
- Gold Fund Manager Laments The Big Payoff "Will Not Be Cause For Celebration"
- Gold Price May Lead Gold Mining Stocks – Latest Research
- Silver and Gold Prices are Packing Their Bags for a Rally, 2016 is the Year of Their Comeback
- Offshore Yuan Drops To 3-Week Lows As China Injects Another $70 Billion Liquidity
- Is There A "Fourth Revolution" On The Horizon In America?
- Billion Dollar Baby Bye Bye - Theranos Lab Found "Deficient"
- Ron Paul Says to Watch the Petrodollar
- Hugo Salinas Price: The coming revaluation of gold
- Housing Bubble Ends with Stock Market Crash and Gold Decline 2016 - 2020
- Sunday At The Taj
- Stefan Molyneux The Stupidity Of Government Schools
- Stefan Molyneux The Welfare State Is An IQ Test
- Fed's capital takes a big hit, Turk tells KWN
- Is GATA good or bad for the monetary metals business?
- GFMS claims demand for gold is weak, sees price falling this year
- Peter Schiff : Market Tanking After Fed Pricked Their Own Bubble
- Guess Who’s Selling Their Treasuries Now?
- Lifting Sanctions on Iran a Mixed Bag
- Gold Price May Lead Gold Mining Stocks – Latest Research
- Monday Morning Links
- What are we doing to the Earth?
- Financial Collapse 2016 - Could This Be “The Big One�
| US Government Ups Preparations For Economic Collapse: Readies Troops For a Civil Force Posted: 25 Jan 2016 11:00 PM PST from Lisa Haven:1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Remains Weak In This Disinflationary Environment Posted: 25 Jan 2016 09:47 PM PST Gold is struggling. Gold bulls will tell you that the yellow metal is doing great, as it has gone up since the start of the year, while stocks and most other commodities have come down. That is obviously only part of the story. As fear among investors has exploded in recent weeks, one would expect gold’s fear trade character to manifest itself. So far, the fear trade has been contained. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why We’re Ungovernable, Part 12: Trump Is No Longer The Worst Case Scenario Posted: 25 Jan 2016 09:20 PM PST by John Rubino, Dollar Collapse:
Republican party insiders expected The Donald to have 15 minutes and then, when the reality of what President Trump might mean sinks in, lose the nomination to someone more mainstream. Which is why so many senators and ex-governors are still in the race despite low single-digit poll numbers. But few expected a challenger who makes Trump look reasonable by comparison — and thus makes voting for him seem like an act of party preservation. Enter Ted Cruz, an authoritarian Christian conservative who is, as the Sunday talk shows keep saying, the most hated man in the Senate:
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| Gold Price Changes Since 2000 in Various Global Currencies Posted: 25 Jan 2016 07:26 PM PST | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Change Since 2000 in Various Global Currencies Posted: 25 Jan 2016 07:26 PM PST | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Presidential Crimes Then And Now Posted: 25 Jan 2016 06:55 PM PST Authored by Paul Craig Roberts, Are Nixon’s and the Reagan administration’s crimes noticable on the scale of Clinton’s, George W. Bush’s, and Obama’s? Not much remains of the once vibrant American left-wing. Among the brainwashed remnants there is such a hatred of Richard Nixon and Ronald Reagan that the commitment of these two presidents to ending dangerous military rivalries is unrecognized. Whenever I write about the illegal invasions of other countries launched by Clinton, George W. Bush, and Obama, leftists point to Chile, Nicaragua and Grenada and say that nothing has changed. But a great deal has changed. In the 1970s and 1980s Nixon and Reagan focused on reducing Cold War tensions. Courageously, Nixon negotiated nuclear arms limitation agreements with the Soviet Union and opened to China, and Reagan negotiated with Gorbachev the end of the dangerous Cold War. Beginning with the Clinton regime, the neoconservative doctrine of the US as the Uni-power exercising hegemony over the world has resurrected tensions between nuclear-armed powers. Clinton trashed the word of the Reagan and George H.W. Bush administrations and expanded NATO throughout Eastern Europe and brought the military alliance to Russia’s border. The George W. Bush regime withdrew from the anti-ballistic missile treaty, revised US war doctrine to permit pre-emptive nuclear attack, and negotiated with Washington’s East European vassals to put anti-ballistic missiles on Russia’s borders in an effort to neutralize Russia’s nuclear deterrent, thus bringing major security problems to Russia. The Obama regime staged a coup against a government allied with Russia in Ukraine, traditionally a part of Russia, and imposed a Russophobia government as Washington’s vassal. Turning to China, Washington announced the “pivot to Asia” with the purpose of controlling shipping in the South China Sea. Additionally, the Clinton, George W. Bush, and Obama regimes fomented wars across a wide swath of the planet from Yugoslavia and Serbia through the Middle East and Africa to South Ossetia and now in Ukraine. The neoconservative ideology rose from the post-Reagan collapse of the Soviet Union. The doctrine met the need of the US military/security complex for a new enemy in order to avoid downsizing. Washington’s pursuit of empire is a principal danger to life itself for everyone on the planet. Unlike Clinton, George W. Bush, and Obama, Nixon and Reagan went against the military/security complex. Nixon opened to China and made arms reduction agreements with the Soviets. Reagan negotiated with Gorbachev the end of the Cold War. The military/security complex was displeased with these presidential initiatives. Both left and right accused Nixon and Reagan of nefarious machinations. Right-wing Republicans said that Nixon and Kissinger were selling America out to the communists and that the scheming Soviets would take advantage of Reagan, the old movie actor. “Communists,” we were assured, “only understand force.” Nixon and Reagan focused on eliminating dangerous rivalries, and the three stooges—Clinton, Bush, and Obama—have resurrected the rivalries. Those who cannot see the astonishing difference are blinded by prejudices and their brainwashing. In this article, I describe unappreciated aspects of the Nixon and Reagan presidencies. What I provide is neither a justification nor a denunciation, but an explanation. Here is what Patrick Buchanan, who was in the White House with both presidents, wrote to me in response to my explanation:
Writing for Americans is not always an enjoyable experience. Many readers want to have their prejudices confirmed, not challenged. Emotions rule their reason, and they are capable of a determined resistance to facts and are not inhibited from displays of rudeness and ignorance. Indeed, some are so proud of their shortcomings that they can’t wait to show them to others. Some simply cannot read and confuse explanations with justifications as if the act of explaining something justifies the person or event explained. Thankfully, all readers are not handicapped in these ways or there would be no point in trying to inform the American people. In a recent column I used some examples of Clinton-era scandals to make a point about the media, pointing out that the media and the American people were more interested in Clinton’s sexual escapades and in his choice of underwear than in the many anomalies associated with such serious events as the Oklahoma City bombing, Waco, the mysterious death of a White House legal counsel, US sanctions on Iraq that took the lives of 500,000 children, and illegal war against Serbia. Reaganphobes responded in an infantile way, remonstrating that the same standards should be applied to “your dear beloved Ray-Gun” as to Clinton. Those readers were unable to understand that the article was not about Clinton, but about how the media sensationalizes unimportant events in order to distract attention from serious ones. Examples from the Clinton era were used, because no question better epitomizes the level of the American public’s interest in political life than the young woman’s question to President Clinton: “boxers or briefs?” It is doubtful that journalists and historians are capable of providing accurate understandings of any presidential term. Even those personally involved often do not know why some things happened. I have been in White House meetings from which every participant departed with a different understanding of what the president’s policy was. This was not the result of lack of clarity on the president’s part, but from the various interests present shaping the policy to their agendas. Many Americans regard the White House as the lair of a powerful being who can snap his fingers and make things happen. The fact of the matter is that presidents have little idea of what is transpiring in the vast cabinet departments and federal agencies that constitute “their” administration. Many parts of government are empires unto themselves. The “Deep State,” about which Mike Lofgren, formerly a senior member of the Congressional staff has written, is unaccountable to anyone. But even the accountable part of the government isn’t. For example, the information flows from the cabinet departments, such as defense, state, and treasury, are reported to Assistant Secretaries, who control the flow of information to the Secretaries, who inform the President. The civil service professionals can massage the information one way, the Assistant Secretaries another, and the Secretaries yet another. If the Secretaries report the information to the White House Chief of Staff, the information can be massaged yet again. In my day before George W. Bush and Dick Cheney gave us the Gestapo-sounding Department of Homeland Security, the Secret Service reported to an Assistant Secretary of the Treasury, but the Assistant Secretary had no way of evaluating the reliability of the information. The Secret Service reported whatever it suited the Secret Service to report. Those who think that “the President knows” can test their conviction by trying to keep up with the daily announcements from all departments and agencies of the government. It is a known fact that CEOs of large corporations, the relative size of which are tiny compared to the US government, cannot know all that is happening within their organizations. Nixon: Villain or Centrist Reformer? I am not particularly knowledgeable about the terms of our various presidents. Nevertheless, I suspect that the Nixon and Reagan terms are among the least understood. Both presidents had more ideological opponents among journalists and historians than they had defenders. Consequently, their stories are distorted by how their ideological opponents want them to be seen and remembered. For example, compare your view of Richard Nixon with the portrait Patrick Buchanan provides in his latest book, The Greatest Comeback. A person doesn’t have to agree with Buchanan’s view of the issues of those years, or with how Buchanan positioned, or tried to position, Nixon on various issues, to learn a great deal about Nixon. Buchanan can be wrong on issues, but he is not dishonest. For a politician, Richard Nixon was a very knowledgeable person. He travelled widely, visiting foreign leaders. Nixon was the most knowledgeable president about foreign policy we have ever had. He knew more than Obama, Bush I and II, Clinton, Reagan, Carter, Ford, and Johnson combined. The liberal-left created an image of Nixon as paranoid and secretive with a long enemies list, but Buchanan shows that Nixon was inclusive, a “big tent” politician with a wide range of advisors. There is no doubt that Nixon had enemies. Many of them continue to operate against him long after his death. Indeed, it was Nixon’s inclusiveness that made conservatives suspicious of him. To keep conservatives in his camp, Nixon used their rhetoric, and Nixon’s rhetoric fueled Nixon-hatred among the liberal-left. The inclination to focus on words rather than deeds is another indication of the insubstantiality of American political comprehension. Probably the US has never had a more liberal president than Nixon. Nixon went against conservatives and established the Environmental Protection Agency (EPA) by executive order. He supported the Clean Air Act of 1970. Nixon federalized Medicaid for poor families with dependent children and proposed a mandate that private employers provide health insurance to employees. He desegregated public schools and implemented the first federal affirmative action program. Declaring that “there is no place on this planet for a billion of its potentially most able people to live in angry isolation,” Nixon engineered the opening to Communist China. He ended the Vietnam War and replaced the draft with the volunteer army. He established economic trade with the Soviet Union and negotiated with Soviet leader Brezhnev landmark arms control treaties—SALT I and the Anti-Ballistic Missile Treaty in 1972, which lasted for 30 years until the neoconized George W. Bush regime violated and terminated the treaty in 2002. These are astonishing achievements for any president, especially a Republican one. But if you ask Americans what they know about Nixon, the response is Watergate and President Nixon’s forced resignation. In other words, here is more proof that all the American media does is to lie to us. The US media is no longer independent. It is a servile captive creature that turns lies into truths via endless repetitions. I am convinced that Nixon’s opening to China and Nixon’s arms control treaties and de-escalation of tensions with the Soviet Union threatened the power and profit of the military/security complex. Watergate was an orchestration used to remove the threat that Nixon presented. If you read the Watergate reporting by Woodward and Bernstein in the Washington Post, there is no real information in it. In place of information, words are used to create an ominous presence and sinister atmosphere that is transferred to Nixon. There was nothing in the Watergate scandal that justified Nixon’s impeachment, but his liberal policies had alienated conservative Republicans. Conservatives never forgave Nixon for agreeing with Zhou Enlai that Taiwan was part of China. When the Washington Post, John Dean, and a missing segment of a tape got Nixon in trouble, conservatives did not come to his defense. The liberal-left was overjoyed that Nixon got his comeuppance for supporting the exposure and prosecution of Soviet spy Alger Hiss two decades previously. I do not contend that the left-wing has no legitimate reasons for hostility against Nixon. Nixon wanted out of Vietnam, but “with honor” so that conservatives would not abandon him. Nixon did not want to become known as the President who forced the US military to accept defeat. He wanted to end the war, but if not with victory then with a stalemate like Korea. He or Kissinger gave the US military carte blanche to produce a situation that the US could exit “with honor.” This resulted in the secret bombing in Laos and Cambodia. The shame of the bombings cancelled any exit with real honor. The Reagan era is also misunderstood. Just as President Jimmy Carter was regarded as an outsider by the Democratic Washington Establishment, Ronald Reagan was an outsider to the Republican Establishment whose candidate was George H. W. Bush. Just as Carter’s presidency was neutered by the Washington Establishment with the frame-up of Carter’s Budget Director and Chief of Staff, Reagan was partially neutered before he assumed office, and the Establishment removed in succession two national security advisors who were loyal to Reagan. Reagan’s Priorities and the Establishment’s Agenda When Reagan won the Republican presidential nomination, he was told that although he had defeated the Establishment in the primaries, the voters would not be able to come to his defense in Washington. He must not make Goldwater’s mistake and shun the Republican Establishment, but pick its presidential candidate for his vice president. Otherwise, the Republican Establishment would work to defeat him in the presidential election just as Rockefeller had undermined Goldwater. As a former movie star, Nancy Reagan put great store on personal appearance. Reagan’s California crew was a motley one. Lynn Nofziger, for example, sported a beard and a loosely knotted tie if a tie at all. He moved around his office in sock feet without shoes. When Nancy saw Bush’s man, Jim Baker, she concluded that the properly attired Baker was the person that she wanted standing next to her husband when photos were made. Consequently, Reagan’s first term had Bush’s most capable operative as Chief of Staff of the White House. To get Reagan’s program implemented with the Republican Establishment occupying the chief of staff position was a hard fight. I don’t mean that Jim Baker was malevolent and wished to damage Reagan. For a member of the Republican Establishment, Jim Baker was very intelligent, and he is a hard person to dislike. The problem with Baker was two-fold. He was not part of the Reagan team and did not understand what we were about or why Reagan was elected. Americans wanted the stagflation that had destroyed Jimmy Carter’s presidency ended, and they were tired of the ongoing Cold War with the Soviet Union and its ever present threat of nuclear Armageddon. It is not that Baker (or VP Bush) were personally opposed to these goals. The problem was that the Establishment, whether Republican or Democratic, is responsive not to solving issues but to accommodating the special interest groups that comprise the Establishment. For the Establishment, preserving power is the primary issue. As The Saker makes clear, in both parties the Anglos of my time, of which George H. W. Bush was the last, have been replaced by the neocons. The neocons represent an ideology in addition to special interest groups, such as the Israel Lobby. The Republican Establishment and the Federal Reserve did not understand Reagan’s Supply-Side economic policy. In the entire post World War II period, reductions in tax rates were associated with the Keynesian demand management macroeconomic policy of increasing aggregate demand. The Reagan administration had inherited high inflation, and economists, Wall Street, and the Republican Establishment, along with Reagan’s budget director, David Stockman, misunderstood Reagan’s supply-side policy as a stimulus to consumer demand that would cause inflation, already high, to explode. On top of this, conservatives in Congress were disturbed that Reagan’s policy would worsen the deficit—in their opinion the worst evil of all. Reagan’s supply-side economic policy was designed not to increase aggregate demand, but to increase aggregate supply. Instead of prices rising, output and employment would rise. This was a radically new way of using fiscal policy to raise incentives to produce rather than to manage aggregate demand, but instead of helping people to understand the new policy, the media ridiculed and mischaracterized the policy as “voodoo economics,” “trickle- down economics,” and “tax cuts for the rich.” These mischaracterizations are still with us three decades later. Nevertheless, the supply-side policy was partially implemented. It was enough to end stagflation and the policy provided the basis for Clinton’s economic success. It also provided the economic basis that made credible Reagan’s strategy of forcing the Soviets to choose between a new arms race or negotiating the end of the Cold War. Ending the Cold War and Bad CIA Advice President Reagan’s goal of ending the Cold War was upsetting to both conservatives and the military/security complex. Conservatives warned that wily Soviets would deceive Reagan and gain from the negotiations. The military/security complex regarded Reagan’s goal of ending the Cold War as a threat comparable to Nixon’s opening to China and arms limitations treaties with the Soviet Union. President John F. Kennedy had threatened the same powerful interests when he realized from the Cuban Missile Crisis that the US must put an end to the risk of nuclear confrontation with the Soviet Union. With the success of his economic policy in putting the US economy back on its feet, Reagan intended to force a negotiated end to the Cold War by threatening the Soviets with an arms race that their suffering economy could not endure. However, the CIA advised Reagan that if he renewed the arms race, he would lose it, because the Soviet economy, being centrally planned, was in the hands of Soviet leaders, who, unlike Reagan, could allocate as much of the economy as necessary to win the arms race. Reagan did not believe the CIA. He created a secret presidential committee with authority to investigate the CIA’s evidence for its claim, and he appointed me to the committee. The committee concluded that the CIA was wrong. Reagan always told us that his purpose was to end, not win, the Cold War. He said that the only victory he wanted was to remove the threat of nuclear annihilation. He made it clear that he did not want a Soviet scalp. Like Nixon, to keep conservatives on board, he used their rhetoric. Curing stagflation and ending the Cold War were the main interests of President Reagan. Perhaps I am mistaken, but I do not think he paid much attention to anything else. Grenada and the Contras in Nicaragua were explained to Reagan as necessary interventions to make the Soviets aware that there would be no further Soviet advances and, thus, help to bring the Soviets to the negotiating table to end the nuclear threat. Unlike the George W. Bush and Obama regimes, the Reagan administration had no goal of a universal American Empire exercising hegemony over the world. Grenada and Nicaragua were not part of an empire-building policy. Reagan understood them as a message to the Soviets that “you are not going any further, so let’s negotiate.” Conservatives regarded the reformist movements in Grenada and Nicaragua as communist subversion, and were concerned that these movements would ally with the Soviet Union, thus creating more Cuba-like situations. Even President Carter opposed the rise of a left-wing government in Nicaragua. Grenada and Nicaragua were reformist movements rather than communist-inspired, and the Reagan administration should have supported them, but could not because of the hysteri | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Fund Manager Laments The Big Payoff "Will Not Be Cause For Celebration" Posted: 25 Jan 2016 06:20 PM PST Dreams don't always come true for TV singing show contestants or gold enthusiasts. As Santiago Capital's Brent Johnson explains, precious metals remain in a long and painful bear market... so why continue to own gold? Simply put, despite all the cries of "you suck" and feelings of loneliness and depression, "if you have done your homework" this will lead to conviction because all the reasons to own gold are still there and are now even more compelling... Contrarians, by definition, spend most of their time bring wrong "until the moment they are not and the big pay off comes."
Brent Johnson explains "you don't get to make the big money and have it be easy..."
The Party In The Global Equity Markets Is Winding Down and "Our moment is coming.. and when that happens we can be humble and gracious or pompous rockstars. When this position - which has been so painful for so long - pays off, the urge to say 'I told you so' will be almost impossible to resist... but please don't say it." "Our winnings are not going to come from the backs of politicians who sold out their constituents in mountains of debt; it's not going to come from the bankers who loaded up their balance sheets with trillions of dollars of derivatives; it's not going to come at the expense of the celebrities in Hollywood or rockstars of New York. Our winnings will come on the backs of innocent people around the world whose prices will rise as their wages fall.. it's going to come from the people who wake up one morning to find their savings have been devalued or bailed-in... it's going to come from the pension funds of teachers and firefighters. The irony is that when gold finally pays off - it will not be a cause for celebration." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price May Lead Gold Mining Stocks – Latest Research Posted: 25 Jan 2016 05:57 PM PST Gold Price May Lead Gold Mining Stocks – Latest Research Dr Brian Lucey and Dr Fergal O'Connor have just published some interesting research on the correlations of the gold price and gold mining indices.
In 'Are Gold Bugs Coherent?', the academics use wavelet models to surface the relationship between gold miners stock prices and the price of gold. Specifically, they examine the relationship between the gold price and the NYSE ARCA Gold Bugs index of gold miner share prices over a 17 year period using wavelet analysis. They find that
There is now a large body of academic research which shows that gold is a safe haven asset and a hedging instrument and can play a "useful role in reducing a portfolio's risk." This has again been seen in recent weeks with gold having risen by more than 4% year to date, while leading stock indices such as the S&P 500 are down by more than 7%. The research entitled 'Are Gold Bugs Coherent?' can be accessed here
LBMA Gold Prices 25 Jan: USD 1,103.70, EUR 1,020.29 and GBP 773.96 per ounce Breaking Gold News and Commentary Today – Click here | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver and Gold Prices are Packing Their Bags for a Rally, 2016 is the Year of Their Comeback Posted: 25 Jan 2016 05:27 PM PST
Like prisoners of war digging a tunnel, silver keeps tapping on the ceiling, trying to break through. Hit that $14.36 high again today, but fell back to a $14.24 close. At least today it bulled its way past the $14.20 that blocked it last week. One more strong push will take it through $14.40 and off to the races. After last week's little correction, it appears that the GOLD PRICE has begun climbing again. If so, 'twill confirm by closing over $1,113 tomorrow. Silver and gold prices are packing their bags for a rally. 2016 is the year of their comeback. A Zero Hedge article at http://bit.ly/1RHCgNZ reports that Norway's biggest bank has now joined the chorus demanding cash currency be abolished. Don't miss what this means: a ban on cash means government and central banking have COMPLETE CONTROL of your wealth. If they want to bail-in your assets to bail out the bank, you are nailed. If they want to force you to spend with negative interest rates on your balance, you're stuck. If they want to cut you off as a non-person, they simply "close your account." Besides, no cash, no bank runs possible. Gotcha! Remember there's very little cash in the system anyway, about $1,000 per capita in the US. Legally it would be very difficult -- absent the Tyrant's Excuse, an "emergency" -- to ban cash in the US, but that doesn't mean the Fed and banks and yankee government wouldn't try. Better than paper FERNs (Federal Reserve notes) are gold and silver. Not in a bank, but in your own safekeeping, beyond bail-ins, beyond forced spending, beyond a switch that makes you a non-person. I say no more. As my old first sergeant used to say, "A word to the wise is suffice."
USE any stock rally to shuck stocks and run for cover.
Euro is vibrating in the nose cone of an even-sided triangle. Rose 0.5% today to $1.0851, but this proves nothing. Yen is giving back some gains from its China-terror rally. Knocking on the 20 DMA (84.35) now. Closed today at 84.51, up 0.39%. Oil (WTIC) gave back today all and more than it gained on Friday. Down 5.92% to $30.34/bbl. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2016, 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Offshore Yuan Drops To 3-Week Lows As China Injects Another $70 Billion Liquidity Posted: 25 Jan 2016 05:20 PM PST Following the afternoon weakness in US equities, Offshore Yuan has been limping lower into the fix, not helped by comments from a MOFCOM researcher that "China is able to withstand currency fluctuations" implicitly warning carry traders to stay away and suggesting the dollar's dominance would not last long. CNH is now at 3-week lows against CNY, over 300pips cheap - which prompted the major short squeeze last time. Chinese stocks are modestly lower but more worrying is the 7-day slide in Chinese corporate bond yields - the most in 2 months - hinting perhaps that the last bubble standing is bursting. Having dismissed calls for large scale stimulus, the Year-end liquidity spigot is wide open...
Consisting of 360bn 28-day and 80bn 7-day reverse repo. As PBOC held the Yuan Fix "stable" for the 13th day in a row. Offshore Yuan continues to weaken and diverge from the "relative" stability of onshore Yuan as MOFCOM resercher Mei Xinyu writes that China is willing and able to stand temporary fluctuations in currency rates to gain independence of its monetary policy,. adding that the Yuan couldn’t be pegged to dollar perpetually since China is the 2nd largest economy in world and a strong position of dollar won’t last long.
Is it us or does that sound a little more like a threat to dollar hegemony than a warning about volatility? Chinese CDS continue to confirm Offshore Yuan's implied weakness - the last time CNY remained "stable" in the face of devaluation stress like this was in the pre-amble to August's collapse...
Finally, we draw attention to the fact that the "last bubble standing" - Chinese corporate bonds - appear to be cracking, having seen yields increase for the last 7 days - the most since mid November...
As Chinese stocks stumble:*HONG KONG'S HANG SENG INDEX FALLS 1.4% IN PREMARKET
None of which should surprise anyone, as BofAML's David Cui (chief China equity strategist) warned so succinctly:
Leading him to forecast that it’s going to be tougher for China’s equity markets this year than last year.
None of which spell anything but contagion concerns for global levered carry trades. * * * And what would a night in Asia be without the Japanese spewing forth more muppetry monetary policy magic... The Japanese continue to desperately try to jawbone some momentum back into their markets, following this morning's spurious midnight Japane time headline, here is another:
Which popped USDJPY back higher after some early weakness
And then this:
And here's why it matters - the correlatiob between USDJPY and world stocks has never been higher...
Well done Central Planners. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is There A "Fourth Revolution" On The Horizon In America? Posted: 25 Jan 2016 05:05 PM PST Submitted by Lawrence Kadish via The Gatestone Institute,
In a recent conference entitled, "How to Think about Inequality," author James Piereson discussed key topics explored in his books, Shattered Consensus and The Inequality Hoax. In Shattered Consensus, Piereson suggested that America is on the abyss of a new and historic phase of economic and political upheaval he calls the "Fourth Revolution." He cites three prior turning points in our nation's history: Jefferson's "Revolution of 1800," which created popular political parties as we know them, the Civil War and the New Deal. Piereson said he doesn't know when The "Fourth Revolution" will occur or what form it will take. But as today's electorate respond to the rhetoric of current Presidential hopefuls one could argue that Piereson may be wrong in his timing. Between our dangerously unsustainable debt and the raw emotions of primary voters so evident in their passion for their respective candidates, we are far from the edge of Piereson's Fourth Revolution. We are in the midst of it.
The current political cycle reveals that many Americans are demanding unprecedented accountability from their elected leaders concerning wasteful spending and policies that have labeled our nation "The United Give Me States of America." A growing majority of citizens want economic growth, job creation, national security and many insist on an end to policies of political correctness, as they believe it is unraveling our basic right of freedom of speech. Of equal concern are the prospects of ongoing terrorist acts against our nation and our allies, the unimaginable threat of a nuclear 9/11 or the global upheaval from a bankrupt America triggered by a default on our nation's unsupportable $19 trillion national debt. As stated previously:
When there is no food on the table, when the dollar has no value, that is when demagogues like Hitler get into power. That "Fourth Revolution" envisioned by Mr. Piereson would also need to include those in America who would seek to have our nation become a socialist state. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billion Dollar Baby Bye Bye - Theranos Lab Found "Deficient" Posted: 25 Jan 2016 04:50 PM PST It seems billion dollar baby of Silcon Valley, Elizabeth Holmes, is facing yet another unicorn-slaying moment as the fairy-take ending for Stanford drop-out looks increasingly distant after a WSJ report that U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter. With a board full of big swinging dicks about to be exposed for the greater fools they truly are, failing to fix the problems could put the Theranos lab at risk of suspension from the Medicare program. We reported on the beginning of the end of the multi-billion dollar dream here, when its core "new technology" - known as a Capillary Tube Nanocontainer (CTN) - was exposed as essentially unacceptable for use. And now, as The Wall Street Journal reports, U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter.
This deficiency comes just days before a CMS inspection report critical to Theranos future relationship with its main retail partner Walgreens Boots Alliance,
Finally, as Aswath Damodaran chastened just a few months ago, looking back at the build up and the let down on the Theranos story, the recurring question that comes up is how the smart people that funded, promoted and wrote about this company never stopped and looked beyond the claim of “30 tests from one drop of blood” that seemed to be the mantra for the company. While we may never know the answer to the question, Aswath Damodaran offers three possible reasons that should operate as red flags on future young company narratives...
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| Ron Paul Says to Watch the Petrodollar Posted: 25 Jan 2016 04:39 PM PST Ron Paul Says to Watch the PetrodollarBy Nick GiambrunoThe chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better. - Ron Paul Ron Paul is calling for the end of the petrodollar system. This system is one of the main reasons the U.S. dollar is the world’s premier reserve currency. Essentially, Paul is saying that understanding the petrodollar system and the forces affecting it is the best way to predict when the U.S. dollar will collapse. Paul and I discussed this extensively at one of the Casey Research Summits. He told me he stands by his assessment.
Nick Giambruno and Ron Paul This is critically important. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hugo Salinas Price: The coming revaluation of gold Posted: 25 Jan 2016 04:19 PM PST 7:12p ET Monday, January 25, 2016 Dear Friend of GATA and Gold: In what is likely his most profound analysis yet, Hugo Salinas Price, president of the Mexican Civic Association for Silver, foresees that the ongoing liquidation of the international reserves of central banks will require an enormous upward valuation of gold and the transformation of the monetary metal back into the primary world reserve currency, replacing the U.S. dollar. Gold's return to its traditional role, Salinas Price writes, will quickly balance international trade, discipline government budgets, and reliquefy debt that is becoming unpayable, though salvaging all debt and derivatives might require a gold price as high as $50,000 per ounce. Salinas Price's analysis goes farther than similar analysis called to your attention by GATA over the years, particularly by the Scottish economist Peter Millar -- -- the U.S. economists Paul Brodsky and Lee Quaintance -- http://www.gata.org/node/11373 -- and the Dutch market analyst Willem Middelkoop: http://www.gata.org/node/13520 Salinas Price's commentary is headlined "The Coming Revaluation of Gold" and it's posted at the civic association's Internet site, Plata.com.mx, here: http://plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=281 CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Direct Ownership and Storage of Precious Metals Goldbroker.com is a precious metals investment company that enables investors to own and store gold directly in their own name (no mutualized ownership) in Zurich and Singapore. Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So Goldbroker.com's storage partner knows the exact identity of each investor. Goldbroker.com doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars. Goldbroker.com was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver. Goldbroker.com is listed among GATA's recommended monetary metals dealers: To invest or learn more, please visit: Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/event/49/vancouver-resource-investment-confere... Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Housing Bubble Ends with Stock Market Crash and Gold Decline 2016 - 2020 Posted: 25 Jan 2016 01:00 PM PST Housing bubble 2.0 will burst and take down real estate prices and gold along with it. Are you ready for the great recession part 2? The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 25 Jan 2016 12:50 PM PST This post Sunday At The Taj appeared first on Daily Reckoning. MUMBAI, India – We watched the sun rise over the bay this morning, trying to gauge the soul of the place. "Timeless" is a word often used to describe the subcontinent. But time passes here, just like everywhere else.
Mumbai… from our hotel window Everywhere you go, much is the same. There are 24 hours in a day, no matter where you are. Here, as everywhere, there are myths and illusions – greedy, stupid, and saintly people, jackass governments, Johnnie Walker, and experience-consuming tourists. No SurrenderLast week was the first positive week in 2016 for the world's stock markets. An announcement from Mario "Whatever It Takes" Draghi at the European Central Bank sent stock prices up on Thursday and Friday. "ECB Chief Vows No Surrender," the Financial Times reported. "There are no limits to our action," claimed Draghi. But there are limits. Trees do not grow to the sky. Neither in India nor in America. Night follows day. Highs follow lows; lows follow highs. Although much is the same when you travel, you find differences, too. And you find them almost anywhere – from a trailer park in Tennessee to the Taj Mahal Hotel in Mumbai. Everywhere has its particularities. We have set up shop in the hotel bar, listening to sitar music and sipping coffee. Three days have passed already. Here in the Taj is a culture rich in nuance… and endlessly fascinating. More important, it is comfortable. The air conditioning works. The pigeons, crows, and seagulls are kept away by steel netting over the garden area. Beggars and terrorists (the hotel was attacked in 2008) are held at bay by armed guards. Waiters offer you a drink whenever you sit down. It is here, then, that we will draw our measure of the place. And we begin by reading the Hindustan Times. Politics occupies the top spot in the news here, as it does almost everywhere, followed by celebrities, corruption, and crime, in roughly that order. Tax the Rich!We're not sure what category to put Thomas Piketty in. The French economist is widely known as the "Karl Marx of the 21st Century" and hailed far and wide as the hero of Bernie Sanders and other mental defectives. As Piketty recently told an audience at the Jaipur Literary Festival, India should cut down on inequality in society by raising taxes on the rich. Inequality is a big issue in India, if you believe the press. Columnists rant against it. And university students kill themselves in protest. Dalits are members of a "socially and educationally backward class." One Dalit young man hanged himself at the University of Hyderabad after an apparently insignificant dispute. At another school, three girls who were studying to be doctors threw themselves down a well. They left a suicide note complaining about the insensitivity of the school. The news report does not say what their teachers were insensitive to; inequality is suspected. Sensory OverloadThe haze is thick. The early morning sun can barely get through. The red ball on the horizon is indistinct… like the melody of the sitar music. Without knowing the hidden cues, the native context, the extended myths that wire society together, we are not sure what to think. Where does one idea start, and where does it stop? The patterns are unfamiliar; the details are new to us. One thing bleeds into another, like the sun into the surrounding haze. Twelve hours later… It is soothing here in the Taj. More intrepid travelers would be out on the streets, exploring the city and its people, enjoying the "sensory overload" that greets Westerners in Mumbai. But our senses are overloaded already. We only have to read the news and look out the window; our circuit breakers nearly give way. There is no beginning and no end to it… that is the reassuring part. India whispers to you: Don't worry… it just keeps going. The sun will come up tomorrow, too. Women will walk along the wharf in their colorful saris. Politicians will lie. Life will go on… more or less as usual. A Sure BetBetting on "more or less as usual" is what we do at the Diary. We have no other compass… no other lodestar. No revelation lights the way. No secret formula directs us to the future. When things get out of whack, the surest bet in the financial world is that they will come back into whack before too long. When markets get into strange territory, it is just a matter of time before they "correct" and move back to more usual ground. These patterns are familiar: Prices move up; then they move down. Now, the hot sun, high in the sky a few hours ago, has settled back into the rim-hugging haze. And here in the Harbour Bar, the sound of ice falling into a glass, like the bells of St. Patrick's in Dublin… or the muezzin of Raqqa, calls the faithful to evening prayer. Regards, Bill Bonner Originally posted at Bill Bonner's Diary, right here. P.S. Bill expects a violent monetary shock, in which the dollar — the physical, paper dollar — disappears. And he believes it will be foreshadowed by something even rarer and more unexpected — the disappearance of cash dollars. Many Americans don't see this coming because of what psychologists call "willful blindness." But Bill has taken the extraordinary step of assembling the full shocking details in a special report. To get full details on what Bill calls the "Great American Credit Collapse", click here right now. The post Sunday At The Taj appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stefan Molyneux The Stupidity Of Government Schools Posted: 25 Jan 2016 11:58 AM PST What is really rigged is the stupid government schools producing stupid students that are really brain dead. These children are not the future. Seems America will have another civil war. Unless these people change, or leave America. The Financial Armageddon Economic Collapse Blog tracks... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stefan Molyneux The Welfare State Is An IQ Test Posted: 25 Jan 2016 11:07 AM PST The word Democracy was misused for REPUBLIC. In democracy, the majority rules, even to trump the minority. In a republic, the law rules which is supposed to limit government and ensure the rights of all, even the minority The Financial Armageddon Economic Collapse Blog tracks trends and... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fed's capital takes a big hit, Turk tells KWN Posted: 25 Jan 2016 10:29 AM PST 1:30p ET Monday, January 25, 2016 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk tells King World News today that Congress and President Obama have just deprived the Federal Reserve of a huge amount of its capital, pushing the Fed that much closer to technical insolvency if the Fed wasn't there already. An excerpt from the interview is posted at the KWN blog here: http://kingworldnews.com/this-ticking-time-bomb-that-now-threatens-the-e... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver Coins and Rounds with Employee Pricing and Free Shipping Grab your Silver Starter Kit at cost from Money Metals Exchange, the company named "Precious Metals Dealer of the Year" by industry ratings group Bullion Directory. Simply go to MoneyMetals.com and type "GATA" in the radio box at the top of the page. This special silver offer contains 4 ounces of silver coins and rounds in the most popular 1-ounce, half-ounce, and 10th-ounce forms. Claim yours now, because GATA readers get employee pricing and free shipping. So go to -- -- and type "GATA" in the radio box at the top of the page. Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/event/49/vancouver-resource-investment-confere... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is GATA good or bad for the monetary metals business? Posted: 25 Jan 2016 10:12 AM PST 1:10p Monday, January 25, 2016 Dear Friend of GATA and Gold: Our friend T.W. writes: "I just read GATA's dispatch about China and the possibility of an international currency reset -- http://www.gata.org/node/16120 -- and I must say I am confused about all this. "Why have I bought all this gold? I want to make a profit but being 67 years old, I wonder whether I will live to see that. I want to leave my kids some but it sounds as if the boys are just going to keep this market rigging going forever. ... Dispatch continues below ... ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star'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: "The dispatch says in acquiring gold China is aiming to gain control over currency markets just like the West has. Doesn't China want profit from all that gold it has bought and told its people to buy? "What is the sense in buying gold only to end up with metal and no profit? "Please explain this if you can. I am not greedy but would like to make some money for my later years." To answer T.W.: While the huge naked short position in gold that is underwritten by governments implies the profitability of long-term gold ownership, GATA can't guarantee profit to anyone. Indeed, while GATA is often accused of being permanently bullish on gold, we are also ostracized by most of the monetary metals mining industry for conveying a message the industry is too terrified to address and for telling monetary metals investors what they are up against. That is, GATA is good for the monetary metals business insofar as we clamor against market rigging by governments, but bad for the business insofar as we tell them that governments will do almost anything to prevent monetary metals from being revealed as money superior to government-issued money. What investors in the monetary metals are up against is the primary interest of government, which will always be to protect and expand its own power, not to protect and advance human liberty, just as the monetary metals always have been and always will be deadly threats to government power, potential mechanisms of escape from totalitarianism. GATA can show people how the monetary metals markets are desperately rigged by governments, how supply and demand for the monetary metals are so imbalanced that vast supplies of imaginary metal have to be created on paper to suppress their prices, and how examination of the issue itself must be suppressed, since the price suppression scheme works only if it is largely surreptitious. But GATA cannot predict what governments will do if enough people ever realize exactly how they are being controlled and cheated. We can only try to convey information to those who dare to receive it and to advocate free markets and limited, transparent, accountable, and democratic government. Sorry to disappoint, but the world is quite beyond GATA's control. As we convey information, we can only hope that, at least over the very longest term, the biblical injunction remains in force: "Ye shall know the truth, and the truth shall make you free." CHRIS POWELL, Secretary/Treasurer Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/event/49/vancouver-resource-investment-confere... Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GFMS claims demand for gold is weak, sees price falling this year Posted: 25 Jan 2016 09:43 AM PST Gold, Silver Set for More Pain into 2016, Poll Says By Jan Harvey LONDON -- Gold prices are expected to post another year of losses in 2016, with more pain still in store for the precious metal this year after a weak third quarter, a Reuters poll showed on Thursday. The survey of 38 analysts and traders conducted over the last two weeks returned an average gold price forecast for next year of $1,153 an ounce, 8 percent below the forecast returned by a similar poll in July. This year gold is expected to average $1,165.50 an ounce, down from a forecast last quarter of $1,193 an ounce. In the year to date gold has averaged $1,177 an ounce, but it is expected to slip to $1,125 an ounce in the last quarter. "The chief drivers for a continued abysmal performance in the gold price are mainly twofold: Fed rate hike expectations and disappointing global physical as well as investment demand," GFMS analyst Johann Wiebe said. "We expect the gold price to remain under pressure and record a new low before year-end." ... ... For the remainder of the report: http://www.reuters.com/article/us-metals-gold-poll-idUSKCN0S91G220151015 ADVERTISEMENT We Are Amid the Biggest Financial Bubble in History; With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong. Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed. Crucial guides to storage in Singapore and Switzerland can be read here: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals. 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. Visit us at: http://www.goldcore.com Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/event/49/vancouver-resource-investment-confere... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peter Schiff : Market Tanking After Fed Pricked Their Own Bubble Posted: 25 Jan 2016 09:42 AM PST Peter Schiff on OAN The Daily Ledger 1/21/2016 Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Guess Who’s Selling Their Treasuries Now? Posted: 25 Jan 2016 07:42 AM PST This post Guess Who’s Selling Their Treasuries Now? appeared first on Daily Reckoning. And now… today's Pfennig for your thoughts… Good day, and a marvelous Monday to you! We start the week looking to the Fed’s FOMC meeting on Wednesday. I’m going to climb back up on the horse that I got knocked off of last month when the Fed hiked rates, and see if I can stay on the horse for as long as I did before last month. What that means for all you new to class is that I’m going to say that the Fed will leave rates unchanged this week, and while they won’t entertain any thoughts about reversing their rate hike just yet, they will acknowledge that their confidence regarding Monetary Policy is not as strong as they would like it to be. That’s what weak economic data prints that just keep coming at them like the snowflakes that came down north of here this past weekend, will do to someone’s confidence. The Fed will acknowledge the market turmoil since their rate hike last month. But, I think they can rest in the knowledge that while the rate hike may be a component of what’s fueling this market turmoil, it’s not the Big Kahuna. That title is reserved for the price of oil, and then coming in second is the goings on in China. So, China, oil and the Fed rate hike, have worked hand in hand in bringing us all this market turmoil. But for now, it’s about the price of oil more than anything. A couple of weeks ago it was about China, and who knows what will come next. The currencies are getting sold for the most part this morning, although there are some currencies carving out gains vs. the dollar. They include: the euro, Czech koruna, S. African rand, Chinese renminbi, and Danish kroner. Not many on that list, eh? Well, there is a handful more of currencies that are down a bit but for the most part they are flat this morning, including the N. Zealand dollar/kiwi, Hungarian forint, Polish zloty, Singapore dollar, and the Swiss franc. I list these because it wouldn’t take much for them to turn positive this morning. Since I made a big deal about the price of oil above, I guess I should tell you that the price of oil is basically flat this morning, which is a nice change, given last week’s volatility for Black Gold, Texas Tea. But being flat on the day, doesn’t appear to be enough to keep the volatility down for the Russian ruble, which on Friday had one heck of a rally, but today is getting sold again by the bushel full. In fact all the petrol currencies are seeing their gains from Friday get chopped. What? A flat day isn’t good enough for these traders? They have to see a 4.5% gain in a day for oil or else they’re going to take their bat and ball and go home? That’s certainly how it looks to me! The Chinese renminbi was allowed to appreciate in the fixing overnight, and while that’s something to speak of in itself, the thing I want to point out is that the Indian rupee didn’t follow in step with the renminbi. Not that these two are connected at the hip or anything like that, but they do seem to move in tandem an awful lot! And the rupee is getting sold this morning, while the renminbi gets fixed at a higher level. Interesting… The Canadian dollar/loonie, saw some volatility last week, as it gyrated with the price of oil. On Friday, the loonie got the slot machine jackpot of a triple cherries, when the price of oil surged, saw their year on year inflation rate rise to 1.6%, and saw their November Retail Sales (really? November? What are you still using an abacus to count?) jump higher by 1.7% vs. just a 0.1% gain in Rocktober. So, everything was coming up roses for Canada on Friday, but today it’s different. I just can’t get over the fact that we’re almost to February and Canada is just now releasing November Retail Sales data. I can see the guy with the visor on in the back room, adding them up, with adding machine tape all over the floor, and I can hear him… let’s listen in: “ok, that’s a 9 and carry the 7, and Oh, my goodness these numbers are so big, how do they expect me to add them all up?” HAHA! German Business Confidence as measured by the think tank IFO saw its January index number fall to 107.8 from 108.6 in December. But just like when the IFO number was rising, and didn’t lend any credence to a euro rally, the euro is ignoring this data, and rallying vs. the dollar this morning. Calmer heads must be coming to the forefront, and pointing out what I pointed out last Friday, and that is that European Central Bank (ECB) President, Mario Draghi, said the ECB “may” look to use additional stimulus, he didn’t say they “will use additional stimulus”. Draghi is a master of using verbal intervention. This man can get the markets to do stupid pet tricks with just words. He gets more mileage out of words and not actually having to implement stuff than any Central Banker in history. He’ll attempt to get the results he wants without actual policy changes, and in this case he’s trying to simulate the economies of the Eurozone to get off their duffs and get moving! Good luck with that Mario. You’ll need it! Later this week, the Eurozone will see the January CPI year on year estimates. I expect to see their consumer inflation as represented by CPI, inch upward from 0.2% to 0.3 or 0.4%… depending on how the beans are counted… A print like this would really help the euro, folks, for a rise in inflation would mean that the Eurozone has come out of the deflationary spiral they were in. Not by a large margin, but by a positive margin, and that’s important! The data from the U.S. Data Cupboard was mixed on Friday, with Existing Home Sales rebounding from their huge drop the previous month, but the Leading Index went negative. I told you on Friday that the Leading Index is one of the few forward looking pieces of data we see, and that I thought it would be disappointing, and it was just that printing a negative – 0.2%.. If I were a betting man, I would be putting my money on what the Leading Index is telling us rather than what Existing Home Sales had to say. Data, is data, here in the U.S. it can be manipulated, massaged, rolled, cut, and cooked before we get to see it. And leaves observers like me, suspicious of any report the government prints. I’m of the opinion that in the case of the Leading Index, that it was either “adjusted so it didn’t look so bad” or the index really did fall -0.2%… And in either case, all it does is tell me that I’m still going to end up being bang on with my call that the U.S. economy is headed to Recessionville, and could very well be there already! We have a real problem, Houston, and the meeting in Davos, Switzerland isn’t going to see anything come of it that fixes the problem. One way or another folks, we’re headed in the wrong direction with the economy, might as well, buy your ticket now, and take your seat on the train to Recessionville… The U.S. Data Cupboard doesn’t have anything for us to view today, other than a third tier report.. The Dallas Manufacturing index. Just another regional that will probably show us that Manufacturing is in deep dookie. Oh, and in another sign to everyone that wants to add up the signs like I do, that the economy is in trouble. Boeing Co said on Thursday it will cut production of its 747-8 jumbo jet in half and take a $569 million charge in the fourth quarter as it faces dwindling sales. Gold is up $7 this morning, and is back over $1,100. Ed Steer told me this weekend that 701,000 Troy Ounces of physical gold has been deposited at GLD so far this year. So, for those of you new to class, GLD is the paper ETF that mimics the price of gold. When investors buy or sell in the ETF the trust company that runs the ETF has to buy or sell the physical gold to balance the books. So, if 701,000 Troy Ounces of physical gold has been deposited so far this year, that tells me that the GLD ETF is a hot piece of paper right now. And physical spot gold has increased 4% so far this year. Silver has increased nearly 3% (at 2.72%) and Platinum and Palladium are in the red. I have to say that this article has gotten a lot of air play on just about everyone’s ( that I read ) radar and letter. So, you might have seen this already. But I thought it played nicely in the sandbox with my carrying on about a Liquidity Crisis last week. Here’s the link to the whole article, and here’s a snippet:
Chuck again. Pretty interesting that Saudi Arabia’s Treasury Holdings have never been detailed and made public. According to Edwin Truman, a former Treasury Asst Secretary in the 90’s this deal to not disclose OPEC’s holding came about “Because relations were rocky and the U.S. needed their oil, the Treasury “didn’t want to offend OPEC.” I don’t think we need to give OPEC any “special treatment” any longer do you? That’s it for today. I hope you have a marvelous Monday! Regards, Chuck Butler P.S. Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics. The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. Click here now to sign up for FREE to see what you're missing. The post Guess Who’s Selling Their Treasuries Now? appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lifting Sanctions on Iran a Mixed Bag Posted: 25 Jan 2016 07:06 AM PST From a financial perspective, the New Year has been anything but happy. As of January 20th, the S&P had fallen over 9% since the beginning of the year, to levels not seen since 2014,reflecting a loss of some $2 trillion in market value. Compounding matters was the 30% collapse in oil prices, which brought crude down to the lowest levels in 13 years. The New Year has also seen further evidence of recession in the U.S., which has appeared in a string of bad manufacturing service sector data. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price May Lead Gold Mining Stocks – Latest Research Posted: 25 Jan 2016 06:57 AM PST Dr Brian Lucey and Dr Fergal O’Connor have just published some interesting research on the correlations of the gold price and gold mining indices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 25 Jan 2016 04:50 AM PST MUST READS Oil falls 3 percent on swelling oversupply – Reuters Relax. We are not heading for a global meltdown – CNN/Money US junk-rated energy debt hits two-decade low – Financial Times This is Why Junk Bonds Will Sink Stocks: Moody's – Wolf Street The Case for the World Economy's Defense as Stocks Swoon – Bloomberg Desperate in Davos: Policymakers Struggle [...] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What are we doing to the Earth? Posted: 25 Jan 2016 02:13 AM PST Watch our Davos session featuring the first-ever large-scale collective viewing of a virtual reality film, 'Collisions' by Lynette Walworth, featuring Aboriginal artists Nyarri Nyarri Morgan and Ngalangka Nola Taylor. The Financial Armageddon Economic Collapse Blog tracks trends and... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Collapse 2016 - Could This Be “The Big Oneâ€? Posted: 24 Jan 2016 07:30 AM PST Everyone take a deep breath. This isn’t 2007 again. The banks aren’t loaded with $10 trillion in “toxic” mortgage-backed securities, the housing market hasn’t fallen off a cliff wiping out $8 trillion in home equity, and the world is not on the brink of another excruciating financial meltdown. The reason the markets have been gyrating so furiously for the last couple weeks is because stocks are vastly overpriced, corporate earnings are shrinking, and the Fed is threatening to take away the punch bowl. And to top it all off, a sizable number of investors have more skin in the game than they can afford, so they had to dump shares pronto to rebalance their portfolios. |
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