Gold World News Flash |
- A MASSIVE “PAPER” DEPOSIT OF SILVER INTO SLV/A HUGE 15.98 TONNES OF PAPER WITHDRAWAL IN GOLD/GOLD AND SILVER RISE
- This Confirms The Continuation Of Silver’s Rally
- Not Too Late For Real Money In A World, Distracted
- US Futures, Global Markets Storm Higher As More Details Emerge About Japan's "Helicopter Money"
- So What if Silver and Gold Prices Are Rigged?
- Trump Demands Supreme Court Justice Ginsburg’s Resignation
- John Rubino – Bad News is Good News: Strength Through Ignorance
| Posted: 14 Jul 2016 04:10 AM PDT from Harvey Organ:
And now for the July contract month: For the July gold contract month, we had a monstrous 612 notices served upon for 61,200 ounces. The total number of notices filed so far for delivery: 4,677 for 467,700 oz or 14.547 tonnes In silver we had 57 notices served upon for 285,000 oz. The total number of notices filed so far this month for delivery: 1383 for 6,915,000 oz |
| This Confirms The Continuation Of Silver’s Rally Posted: 14 Jul 2016 04:05 AM PDT On the silver chart, is a classical major reversal pattern referred to as a Head and Shoulders Bottom. Major reversal patterns form after a downtrend, and its formation normally confirms a change in trend. Below, is a silver chart (all charts from tradingview.com), with the pattern highlighted: |
| Not Too Late For Real Money In A World, Distracted Posted: 14 Jul 2016 03:40 AM PDT by Dr. Jeffrey Lewis, Silver Coin Investor:
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. – Henry Ford A recent IMF study estimated that the profits of the big banks in the United States are almost entirely due to the government sponsored backstops. It's not just bailouts, but also cheap credit, and judicial negligence. So when the JP Morgan and Chase pay a $13 billion fine for criminal behavior it’s nothing compared to what they’re getting simply by having a government insurance policy.
Meanwhile crisis perceived begins a new cycle. For the renewed European debt crisis, and the Germans on begging, while they blame the Italians. So much for the political/monetary union. So the Germans have now forgotten. But, hey… If all of this sounds absurd, reflect on the source. When money is untethered, the license to print extends beyond binary debt script Don’t look now, Japan creeps back into the limelight, soon to be the testing grounds with QE from Helicopters. If it were only that simple. We are about to see that complexity unwind. As the huge counter-parties (derivative holders) unravel in a panic, the entire system of circular causality will be revealed. In Europe, it's the troika policies. The population should pay for the risky, careless behavior of the bankers. Put it to the people for the vote. Brexit is a distant memory, contained by the self-granted legal powers given to the Treasuries, the stabilization funds, and the great liquidity providers. Remember the what the Swiss did with their EU vote? The citizens can decide their own fate and then beg for more of it. Remember, visions of ‘Helicopters’ will soon morph into QE – in the name of ‘fiscal’ policy – for what’s good (and food) for the unwashed masses. The creditors are laughing. Turn off the machines and people don't eat. Sure, let them vote, they imagine. Give them hope and the illusion of freedom in a flag, while tapping the deep wells of perpetual welfare for the debt slaves.
Let them try and rise up against the economic and social policies deriving from the bureaucracy and the banks. Historians will be sorting this out for decades. The ‘winners’ will repaint it all in terms of the little guy — as if they little guy was more than a pawn in the wealth transfer. We are merely in the early stages, where the last variable is the unmeasurable velocity of money – a concept as close to all or none when it appears. |
| US Futures, Global Markets Storm Higher As More Details Emerge About Japan's "Helicopter Money" Posted: 14 Jul 2016 03:34 AM PDT The global meltup continues with the S&P set to open at new all time highs, some 20 points higher from yesterday's close, however the driver for the latest rally is not so much the imminent BOE announcement which is expected to cut rates by 25 bps from 0.50%, but a dramatic surge in the USDJPY just after 1am Eastern when Bloomberg revealed more details about Ben Bernanke's masterplan for Japan's helicopter money.
According to Bloomberg, Bernanke, who met Japanese leaders in Tokyo this week, had floated the idea of perpetual bonds during earlier discussions in Washington with one of Prime Minister Shinzo Abe's key advisers. Abe advisor Etsuro Honda said that during an hour-long discussion with Bernanke in April the former Federal Reserve chief warned there was a risk Japan at any time could return to deflation. He noted that helicopter money could work as the strongest tool to overcome deflation, according to Honda. Bernanke noted it was an option. The implication, as we said last week when we previewed just this "big thing" is that Japan is indeed set to be the first testing ground of helicopter money in the modern financial system. Though Honda said he thought Japan was already engaged in a strategy that involved helicopter money, he said that he watned to convey the idea to Abe and asked Bernanke to meet with the premier in Japan. While this didn't happen in the spring, Bernanke joined central bank chief Haruhiko Kuroda over lunch this Monday and on Tuesday he attended a gathering with Abe and key officials, including Koichi Hamada, another influential economic adviser. Honda, 61, said he told Abe about Bernanke's views after his April meeting. "I told him now is the time for Japan to expand fiscal spending and at the same time, additional monetary easing should be taken," Honda said. "I told him it is necessary to strengthen the effects of Abenomics" through such a strategy. While nothing definitive has been revealed by Japan yet, bond, stock traders and economists have been mulling the possible implications of Bernanke's visit and the next steps to come in Abenomics. Amid intense speculation about the chances of helicopter money, and the certainty of further fiscal stimulus ordered by the prime minister, Japanese shares have rallied for four consecutive days while the yen has weakened. The Japanese currency weakened sharply in late afternoon trading in Tokyo, and reached just shy of 106 around 6am ET, having soared nearly 600 pips in the past 4 days. And with the Yen - the world's carry currency - plunging, global stocks have climbed with U.S. equity index futures. European shares rose to a three-week high and emerging-market equities advanced for a sixth day. South Africa's rand and Russia's ruble were among the biggest gainers against the yen after a gauge of metal prices climbed to a nine-month high and oil rebounded from a two-month low. The pound advanced as traders awaited the Bank of England's first interest-rate decision since the U.K. voted to leave the European Union. "The expectations of a two-pronged stimulus approach -- both fiscal and monetary -- have definitely put the yen under pressure," said Peter Dragicevich, a foreign-exchange strategist at Commonwealth Bank of Australia in London. Meanwhile, as Japan prepares to formalize helicopter money, the BOE is set to ease in a more conventional way in less than an hour: "Everyone is focused on the BOE and whether or not they will announce more stimulus and cut rates." The Stoxx Europe 600 Index rose 1 percent at 10:55 a.m. in London, paring its losses since Britain's referendum on June 23. All industry groups in the gauge climbed, led by carmakers and commodity producers. The MSCI Emerging Markets Index added 0.7 percent in its longest winning streak since April. The gauge advanced to 8.6 percent this year and trades at the highest valuation in more than a year. The MSCI World Index of developed markets has gained 2.1 percent in 2016. Futures on the S&P 500 Index added 0.8%. BlackRock and JPMorgan are scheduled to report earnings before the market opens. Yum! Brands Inc. jumped 3.1 percent as the company raised its forecast after its KFC chain performed better than expected in China. Analysts predict second-quarter profits will drop 5.7 percent at S&P 500 firms, which would make it the fifth straight quarterly decline, the longest streak since 2009. Sovereign debt fell in the U.S., the U.K., Japan and Germany. The yield on U.S. Treasuries due in a decade rose two basis points to 1.50 percent, while that on Japanese debt increased by two basis points to minus 0.26 percent. Yields climbed four basis points in the U.K. and Germany to 0.78 percent and minus 0.05 percent, respectively. Global market snapshot
Top Global Headlines:
We start the overnight update with Asian markets, where it was another mostly quiet session for equities with participants awaiting the Bank of England rate decision. Nikkei 225 (+0.95%) traded with modest gains to continue its 4-day winning streak amid source reports that fiscal stimulus worth around JPY 10tr1 could be announced later this month. Upside in ASX 200 (+0.43%) had been curbed by the decline in crude prices seen yesterday post DoE's, while a lacklustre CNY 20bIn liquidity injection failed to lift the Shanghai Comp (-0.22%) out of the red.10yr JGBs traded flat amid the continued upside seen in Japanese stocks while a disappointing 5yr auction in which the b/c, and average yield were lower than prior failed to have a significant impact on price action. Top Asian News
Much of the price action so far today took place as European participants arrived at their desks, with significant moves seen early on amid mounting expectations for BoE and Japanese stimulus, but light newsflow thereafter has led ti subdued trade as we move closer towards the BoE rate decision. European equities saw significant upside through the open and trade in firm positive territory (Euro Stoxx: +1.4%). In terms of a sector break down, the likes of financials, materials and energy names are the best performers, while the defensive sectors healthcare and utilities are the session's laggards. Italian banks Banca Monte dei Paschi and UniCredit lead the way higher in stock specific terms after Italian press reports suggested that a capital increase was on the card for both Co.'s. Despite much of the focus on macro news falling on the potential for further easing for the likes of UK and Japan, fixed income markets have been somewhat indecisive so far today, seeing initial downside before a turnaround by mid-morning. As such, by mid-morning Bunds are on the way to closing the opening gap and trading firmly back above the 167 level. Top European News
In FX, the biggest story remains the Japanese yen which weakened 1.1 percent versus the dollar, after earlier strengthening as much as 0.5 percent. The pound strengthened 0.6 percent to $1.3229, having touched $1.3338 on Wednesday, the highest since July 4. Sterling rallied even amid rising speculation that the central bank will cut its benchmark rate for the first time since 2009 to support the U.K. economy from the fallout of Brexit. Futures pricing shows the chance of a reduction at this meeting has climbed to 85 percent, compared with 11 percent on June 23, the day of the nation's referendum."Currency investors see a rate cut today as a done deal," Valentin Marinov, head of Group-of-10 currency strategy at Credit Agricole SA's corporate and investment-banking unit in London, wrote in a client note. "The BOE will struggle to exceed the already dovish market expectations and this will help the pound to consolidate in the aftermath of the meeting." In commodities, West Texas Intermediate crude oil rose 1 percent to $45.20 a barrel, after tumbling 4.4 percent on Wednesday as U.S. data showed crude stockpiles fell an eighth week, the longest declining streak since June 2015.The LME Index of six base metals rose to the highest since Oct. 15 on Wednesday as nickel climbed on potential supply disruptions and copper advanced on speculation policy makers' efforts to spur economic growth will boost demand for metals. Zinc and aluminum rose, while tin fell. Gold declined 1.2 percent to $1,327.12 an ounce, after gaining 0.7 percent in the last session. Corn increased 2 percent in Chicago, climbing for a third day as forecasts for hot and dry weather in the U.S. Midwest raised concern crop yields will deteriorate. On today's calendar, in addition to the much anticipated rate cut by the BOE due out shortly, in the US we've got the latest weekly initial jobless claims number and also the June PPI report (market expectations are for +0.3% mom at the headline and +0.1% mom at the core). Fedspeak wise Lockhart (at 4.15pm) is set to opine this afternoon and George (6.15pm BST) later this evening. As we noted earlier JP Morgan highlights the earnings calendar while Delta Airlines is also due to report. * * * Bulletin Headline Summary from RanSquawk and Bloomberg
US Event Calendar
DB's Jim Reid concludes the overnight wrap The market is pricing an 80% chance of a 25bps cut today with economists a little more split as to whether they do or not (30 out of 54 are expecting a cut). DB's George Buckley thinks it's a close call but on balance believes the BoE will wait the extra three weeks until the August meeting when a lot more data will be available for the post referendum period. Supporting this he says that the comments from the BoE pre-referendum seemed to hint at waiting to tailor the response to the world that emerges after the vote. The BoE will be compiling the quarterly Inflation Report/analysis of the economy coinciding with the August meeting. He thinks delaying may be the preference and they can buy themselves time with a sufficiently dovish statement today. The markets have offered the BoE an opportunity not to rush given the recent rally. Politics may also be involved to some degree. Without knowing what the new administration's policy will be, a wait and see approach maybe gives them powder for a more comprehensive package down the line. It's a fine line though and we're highly likely to see action by the August meeting at the very least. Staying with the UK, last night should remove any doubt that Brexit does indeed mean Brexit as new PM Theresa May appointed Brexit campaigners David Davies and Boris Johnson Secretary for exiting the EU and Foreign Secretary respectively. So the long roadmap to exiting the EU started being formulated as of last night. Away from this, today brings the first key US earnings report of the season with JP Morgan reporting before market opening. That will kick start a run of quarterly bank reports that we're due to get in the next ten days or so including Citi and Wells Fargo on Friday and BofA, Goldman Sachs and Morgan Stanley next week. Markets hit a bit of a brick wall yesterday with the recent rally showing some signs of fatigue so these upcoming earnings reports could provide a bit of direction again. Indeed it was a large leg lower for Oil which weighed on sentiment yesterday. WTI plunged -4.38% yesterday and tested those Monday low's again back below $45/bbl after the latest EIA data showed evidence of an unexpected increase in gasoline supplies last week. Energy stocks were under pressure as a result and it ended with the S&P (+0.01%) fluctuating between modest gains and losses and closing pretty much flat. The Stoxx 600 (-0.13%) closed just in the red although European Banks (Stoxx Banks -1.51%) and the FTSE MIB (-1.15%) stood out. That was actually despite some more positive chatter around Italian Banks with the news that a second bank support fund to supplement Atlante is being discussed. Meanwhile, sovereign bond markets reversed some of their weakness this week with 10y and 30y Treasury yields in particular 4-5bps lower following a strong 30y auction. In another eye catching stat for the week, a new 10y Bund was issued yesterday with a negative yield (-0.05%) for the first time ever. It's the first Eurozone 10yr sovereign bond to be issued with a negative handle yield and joins Japan as the second G7 member to do such. As we flick over to the latest in Asia this morning, most major bourses are following the lead from Wall Street and Europe yesterday and trading with a relatively cautious tone, although the outlier is again Japan where the Nikkei (+0.76%) and Topix (+0.75%) continue to benefit from the elevated expectations that stimulus is around the corner. Elsewhere, the Hang Seng (+0.02%), Shanghai Comp (-0.36%), Kospi (-0.06%) and ASX (+0.35%) are a bit more mixed although moves have been modest. As expected the Bank of Korea kept rates on hold this morning, although they did move to cut growth and inflation expectations this year. Moving on. There was a bit of Fedspeak for markets to take account of yesterday. Earlier in the day we heard from Dallas Fed President Kaplan (moderately hawkish) who said that the recent US employment report shows signs of making progress in reducing labour market slack but that a 'slow, gradual, careful' approach to raising rates is still appropriate. Kaplan added that there are two effects coming from the current slow GDP growth environment. He noted that it means that the Fed will 'make progress on our dual mandate but it might be slower than it would be otherwise' and that the other impact 'is that the neutral rate is probably lower than it would be otherwise'. Meanwhile and speaking overnight, Philadelphia Fed President Harker (also moderately hawkish) said that he believes inflation will return to target sometime next year and that 'I anticipate that it may be appropriate for up to two additional rate hikes this year and that the funds rate will approach 3% by the end of 2018'. Staying in the US, datawise yesterday there wasn't too much to add to the debate. Import prices rose a less than expected +0.2% mom in June (vs. +0.5% expected) with the YoY rate now at -4.8% from -5.0%. The June Monthly Budget Statement revealed a smaller than expected surplus during the month ($6.3bn vs. $19.0bn expected) with receipts down -3.9% yoy. Later in the evening the Fed's Beige Book revealed that the US economy has expanded at a modest pace since mid-May and that 'districts reporting on overall growth expect it to remain modest'. The text also suggested that labour market conditions were said to have remained stable with employment continuing to grow modestly and wage pressures remaining 'modest to moderate'. The Bank of England also released its Q2 credit conditions survey yesterday. The main take away from the summary was the reference to the outlook post-Brexit with the summary revealing that major UK lenders expect the availability of secured credit to be little changed in the near term but the demand for secured credit to fall. The text also revealed that the availability of credit to the corporate sector is expected to hold steady, although a further tightening is expected for the commercial real estate sector. Before we look at today's calendar and just wrapping up the data yesterday, France revised down their final June CPI print to +0.1% mom from +0.2%, although the YoY rate stayed as is at +0.2%. More notable was the weaker than expected Euro area industrial production report for May (-1.2% mom vs. -0.8%) which has resulted in the YoY rating fall to +0.5% from +2.2%. Looking at the day ahead, this morning in Europe the overriding focus will of course be on the aforementioned BoE meeting at midday, especially with no data coming out of note. This afternoon in the US we've got the latest weekly initial jobless claims number and also the June PPI report (market expectations are for +0.3% mom at the headline and +0.1% mom at the core). Fedspeak wise Lockhart (at 4.15pm) is set to opine this afternoon and George (6.15pm BST) later this evening. As we noted earlier JP Morgan highlights the earnings calendar while Delta Airlines is also due to report. |
| So What if Silver and Gold Prices Are Rigged? Posted: 14 Jul 2016 03:00 AM PDT by Dr. Jeffrey Lewis, Silver-coin-investor:
– from Adam Ferguson's When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar Germany If people bring so much courage to this world the world has to kill them to break them, so of course it kills them. The world breaks everyone and afterward many are strong in the broken places. But those that will not break it kills. It kills the very good and the very gentle and the very brave impartially. If you are none of these you can be sure it will kill you too but there will be no special hurry. – Ernest Hemingway, A Farewell to Arms The dominant school of thought rests it case on the premise that no matter how direct or egregious, out in the open, or surreptitious the intervention actually is- ultimately, 'the markets' will prevail. This common view also emanates from the world of alternative investing, including the thought leaders in sound money. True market value will always be expressed eventually. Fair value will and must exert itself from 'digits on high' all the way to the farmers' market and the retail store. It will not be a smooth return to equilibrium. And no one can predict details of how we arrive. However, ignoring the basic functioning along the way – for the privilege of being right is a flattery without substance. There remains, even in the world of sound money, a willful blindness when it comes price manipulation that is summed up best with the following statement: "So what if the price is rigged?" |
| Trump Demands Supreme Court Justice Ginsburg’s Resignation Posted: 14 Jul 2016 01:30 AM PDT by Jeff Nielson, Bullion Bulls:
A U.S. Supreme Court judge has publicly voiced her opinion about Donald Trump, a candidate for the U.S. presidency, and urged U.S. voters not to vote for him. Trump (rightfully) reacted in outrage, as it is one of the oldest traditions of the Western legal system that the judiciary should not (and must not) engage in such public comments — as it (rightfully) calls into question their independence/impartiality.
This illustrates two things. It illustrates how a large chunk of the U.S. Establishment is still reacting in a rabid (and unbalanced) manner with respect to the Trump candidacy. This is despite the fact that he has an Establishment (Goldman Sachs) Stooge as his money-man. And an Establishment Stooge (“Washington insider”) has now taken over his campaign. The other point that is illustrated here is the total corruption of the U.S. judiciary — especially its disgraceful (and totally politicized) Supreme Court. As bad as things are in Canada, we would never see a Canadian Supreme Court judge behaving in such a disgraceful and entirely inappropriate manner. Indeed, we would not see such disgraceful behavior anywhere else in the Corrupt West. Ginsburg should resign. It is the only gesture which would restore a tiny vestige of credibility with respect to the U.S. Supreme Court. Judges are supposed to be totally apolitical. Of course this has never been a reality with the U.S.’s highly politicized judiciary — but they should at least pretend to be politically neutral.
Responding to criticism, Trump calls on Justice Ginsburg to resign www.reuters.com/article/us-usa-election-…nsburg-idUSKCN0ZT1HG U.S. Republican presidential contender Donald Trump called on Wednesday for the resignation of Supreme Court Justice Ruth Bader Ginsburg, describing her as mentally unfit after she lambasted him in a series of media interviews. “Justice Ginsburg of the U.S. Supreme Court has embarrassed all by making very dumb political statements about me,” Trump said in a Twitter post. “Her mind is shot – resign!” The New York billionaire chided Ginsburg, 83, for criticizing him this week and expressing concern for the country’s future if he is elected in November. Trump said it was inappropriate for Supreme Court justices to weigh in on political campaigns. He told the New York Times on Tuesday that he thought it was a disgrace to the court and that Ginsburg should apologize to her colleagues on the bench… |
| John Rubino – Bad News is Good News: Strength Through Ignorance Posted: 14 Jul 2016 01:00 AM PDT by Kerry Lutz, Financial Survival Network:
Click HERE to Listen |
OPEN INTEREST IN SILVER IS CAUSING HEADACHES TO OUR BANKERS/HUGE CONFLICT BREWING IN THE SOUTH CHINA SEA/IS HELICOPTER MONEY COMING TO THE USA?
They will never admit they are the problem, whether enabled the regulator, the enforcer, or one of the large public financial institutions. Weimar central bankers would not accept that their policies were the overriding problem. Rather, they believed they were responding to outside forces. Their responses only got bigger.
Irrespective of how one feels about Donald Trump, what we just saw in the U.S. is an outrage, and a disgrace for the U.S. Supreme Court.
John Rubino returns… What was bad news just one week ago is now good news. That was a crazy world we're living through. But gold seems to be seeing through this charade. We've never been in this situation before. 5 countries with negative interest rates. Will gold and silver keep going up? John thinks it will? He'll be writing about it in his next book due out in the Fall and about the investment opportunities that will be available when the system resets itself.| You are subscribed to email updates from Save Your ASSets First. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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