sept 18./silver OI rises again/SLV inventory rises another 960,000 oz/

Gold closed down .80 at $1225.70 (comex to comex closing time ). Silver was down 21 cents at $18.45
In the access market tonight at 5:15 pm
gold: $1225.52
silver: $18.52
GLD : no change in tonnes of gold at the GLD (inventory now at 784.22 tonnes)
SLV : another addition of 960,000 oz in silver inventory at the SLV/inventory oz/ rests at 340.449 million oz .
the big news from China last night as China unveils its anti rigging benchmark. The futures exchange begins today and will now make the rigging far more difficult for our bankers. The premiums on the price of gold hit 6 to 7 dollars per oz.

This post was published at Harvey Organ on September 18, 2014.

With A Market Cap Of $168 Billion, Alibaba Is Bigger Than…

With a market capitalization of $168 billion after its pricing at $68/share, the upper end of the range which makes this the largest US IPO in history and would be the largest in the world if the greenshoe is exercised, Alibaba, while not a member of the S&P 500 (at least not immediately), will have a market cap that is larger than the following index members:

This post was published at Zero Hedge on 09/18/2014.

Storm Clouds Gathering

If you have the time, please take a few minutes to watch this video.
Two things:
1. I like these StormCloudsGathering guys. They’re not just out to sensationalize and they try to get it right. Case in point…back during the “Cliven Bundy Crisis”, they reworked and even pulled some of their videos as new information became available. That’s honorable and I respect them for it.
2. Like anything else, there are parts of this video that are debatable and I don’t endorse all of their conclusions. However, who am I to say that they are wrong or inaccurate? Perhaps some of the pieces may connect differently than proposed.
That said, this is an extremely well-done and informative video and the base conclusion that maintaining dollar hegemony is the primary motivation for US “foreign policy” is certainly accurate. Even if you disagree with the premise, it’s worth watching just for the concise explanation of the petro-dollar system.
Please watch and then consider linking/forwarding.

This post was published at TF Metals Report on September 18, 2014.

The Dow And S&P 500 Soar To Irrational Heights – Meanwhile The Ultra-Wealthy Rush To Buy Gold Bars

Did you know that the number of gold bars being purchased by ultra-wealthy individuals has increased by 243 percent so far this year? If stocks are just going to keep soaring, why are they doing this? On Thursday, the Dow Jones industrial average and the S&P 500 both closed at record highs once again. It is a party that never seems to end, and there are a lot of really happy people on Wall Street these days. But those that are discerning realize that we witnessed the exact same kind of bubble behavior during the dotcom boom and during the run up to the last financial crash in 2007. The irrational exuberance that we are witnessing right now cannot go on forever. And the bigger that this bubble gets, the more painful that it is going to be when it finally bursts. Those that get out at the peaks of the market are the ones that usually end up making lots of money. Those that ride stocks all the way up and all the way down are the ones that usually end up getting totally wiped out.
To get an idea of how irrational the markets have become, all one has to do is to look at Twitter.
Would you value “a horribly mismanaged company” that is less than 10 years old and that has never made a yearly profit at 31 billion dollars?
Well, that is precisely how much the financial markets say that Twitter is worth at this moment.
Even though Twitter will probably never be much more popular than it is right now, it continues to bleed money profusely. On a GAAP (generally accepted accounting principles) basis, Twitter lost an astounding 145 million dollars during the second quarter of 2014…

This post was published at The Economic Collapse Blog on September 18th, 2014.

FX Markets In Turmoil On Scottish Vote & Japan Economic Downgrade

Cable (GBPUSD) is surging as the first results from the Scottish Referendum hit and a resounding “No” to independence appears confirmed. Almost back to pre-Scottish-Vote-fears level (1.66), cable is up 250 pips in the last 24 hours (its biggest move in over a year). GBP is also strengthening notably against EUR (2-year highs), CHF (2 year highs) and of course the JPY (6 year highs) as theJapanese government admits defeat and downgrades its economic assessment for the first time in 5 months (hence sell JPY as they ‘must’ do more money printing (despite Japanese businesses all pushing for a stronger JPY). FX markets are extremely volatile this evening and implicitly, equity futures are clanging around cluelessly. The USD Index is flat (gaving retraced all FOMC gains).

This post was published at Zero Hedge on 09/18/2014.

Lurking Beneath The Taper: More Trouble In Repo Land

Since we are now in the middle of the final month of a quarter, checking repo stats shows what we have come to expect of a fragile liquidity system. Once again, repo fails spiked sharply in the latest weekly statistics from FRBNY as primary dealers and the Fed’s own repo ‘fix’ fail to affect the ‘resiliency’ that FOMC members appear desperate to attach. However, since the repo market is far, far away from the everyday nobody pays much attention.
The problem with liquidity is always that it’s not what you see today when all seems well and abundance is seemingly effective, it is actually what to expect when you need it most. From the standpoint of central banks, that has been their operating assumption (at least as portrayed publicly) since the nineteenth century. The Federal Reserve itself was dedicated on the principle of currency elasticity, which is exactly this point – to be that liquidity when it is most needed as private markets shy away.
Unfortunately, modern incarnations of these central banks still mostly apply nineteenth century rules, policies and even understanding to a 21st century banking system that does not so easily follow generic incantations of simplistic theory. The ‘money supply’ right now is no such thing, as money has vanished from banking. Liquidity itself is not dependent on ‘money supply’ so much as the means and channels for flow. That was a lesson learned the hard way by those that assured everyone in 2007 that all was ‘contained.’
The message of resiliency is then a main part about incorporating those shortcomings into the current framework. When Janet Yellen proclaims that markets are so ‘resilient’ that she would prefer they not even bother about such negativity she means to say that the Fed is more than aware of flow and liquidity and has taken that to heart. Indeed, they instituted the reverse repo program (actually it was just an expansion of existing lines) last year to live up to elasticity doctrine in the real ‘currency’ of the modern bank: collateral.

This post was published at David Stockmans Contra Corner on September 17, 2014.

Gold Daily and Silver Weekly Charts – Making Room for Alibaba – For All That

The wiseguys were raising cash to participate in the Alibaba IPO tomorrow. It should price tonight by about 5 PM Eastern US. The mid range pricing is $66 to $68 per share. So there was little surprise that we saw a pump in stocks today and a big drop in volatility. The metals held up well but that is not saying much after the multi-day smacking they have taken. The vote on Scotland’s Independence is today and the results should be announced this evening. The polls, for what they are worth, are ‘too close to call.’ Whatever the results I wish the Scottish people well. There is an impulse to freedom in the world these days, that seems to have certain select parties very nervous. They do not care for independent thinking, and individual liberty. They dislike groups that question authority or attempt to hold it to account. And they certainly shrink at the thought of gold and silver. These are the cadres of would-be professional rulers and managers, for whom oligarchy seems to be the natural form of governance. They wish for the ascendancy of the State, the bigger and more comprehensive the better, as long as they are within the circles of its power.
Not that I am all that concerned about their motives per se, or willing to speculate upon them. But any group that believes that they have been pre-selected, whether by birth or by talent, to rule strikes me as one that ought never to have access to exceptional power over others. They are certainly most likely to continue on a stupid path of their own choosing despite all other evidence to the contrary. God help the common people and soldiers led by such a one as this. Speaking of leaders pursuing an unfortunate path despite all evidence to the contrary, there was intraday commentary which you may wish to view both here and here. I think the Anglo-American financiers have made a truly Faustian bargain, and willing to pursue it to the bitter ends.

This post was published at Jesses Crossroads Cafe on 18 SEPTEMBER 2014.

SP 500 and NDX Futures Daily Charts – There Goes Larry Ellison, Here Comes Alibaba

“A swath of early investors in Alibaba Group Holding Ltd. will be able to sell more than $8 billion worth of shares on the day the Chinese e-commerce company goes public, an unusual arrangement that is influencing how bankers price the offering.
Alibaba plans to price its shares at $66-$68, which at the midpoint would give it a valuation of about $165 billion.
Insiders and other investors in companies staging initial public offerings are generally required to hold on to shares for several months, in “lockup” arrangements banks design to help protect the stock’s price in its early days.
But with Alibaba, a number of shares equal to about a third of what could be sold in the deal aren’t covered by such restrictions, according to the company’s public filings. In contrast, no pre-IPO shares of Facebook Inc. FB 0.84% were allowed to be traded when the social-media company made its market debut.
Demand for Alibaba’s shares appears strong ahead of its expected IPO Friday…
WSJ, Alibaba IPO Gives Insiders Rare Chance to Sell Early
After the bell the word came out that Larry Ellison will be stepping down as the CEO of Oracle. He will remain as the Chairman and Chief Technology Officer. Bloomberg was gushing with the news. The big news for tomorrow will be the results of the vote for Scottish Independence, which I view as a more political issue with implications for the Anglo-American banking cartel, if one subscribes to domino theories. Scotland’s independence is dangerous in the same way that the peaceful demonstrations of Occupy were dangerous. It gives other people ideas. And the big, big news will be the Alibaba IPO. It is being brought to market fairly briskly, on the day after they have ended their road show. As you may recall, Goldman will be managing the order flow of shares tomorrow. If they were not holding the bag for unsold shares I might be a little more concerned. The secondary market might be lively, because of general ‘edge’ to the market, and the number of insider shares that are not ‘locked up’ from trading on the first few days of the IPO.

This post was published at Jesses Crossroads Cafe on 18 SEPTEMBER 2014.

Inaugural Post from ‘The Dissident Dad’ – Explaining Ferguson, Missouri to Your Children

I’ve had the great pleasure to get to know Dan Ameduri, founder of Future Money Trends, over the past several years. While the two of us originally got to know one another through the world of precious metals investing, what I have valued and appreciated most about him is his intellectual flexibility to remain open to new ideas and possibilities for the future.
Many of the topics I discuss on the site take on a particular importance if you have a family. Since I do not yet have children, I thought it would be wise to reach out to Dan Ameduri, a dedicated father, in order to get his unique perspective on important cultural and economic issues. Fortunately for me, he agreed to be a part of Liberty Blitzkrieg’s new Contributors section.
I’ve always been impressed by Dan’s video creation skills, but I have recently discovered he is a very good writer as well. So without further ado, here is his inaugural piece…
The Dissident Dad – Explaining Ferguson, Missouri to Your Children:
One of the toughest questions my 4 year old son has asked me to date is, ‘Are the police good guys or bad guys?’
After depriving him of all TV for the first 2 years of his life, occasionally him and I will sit down on the couch and look for YouTube clips of my favorite super-hero movie scenes. I’ll never forget my son’s face and reaction while watching a scene from the ‘Dark Knight Rises’ where Batman, played by Christian Bale, is being chased on his motorcycle by literally hundreds of police cars. My son turned to me and said, ‘but I thought Batman was a good guy. Daddy, are the police good guys or bad guys?’
Since day one I have taught my children that the government is not our friend; it doesn’t mean government is our enemy, but I have raised them to not have a default trust in any government or its representatives, including the police.

This post was published at Liberty Blitzkrieg on Sep 18, 2014.

Elliott Wave Projection For Gold Price And US Dollar

In this excellent market analysis, Trader MC points out that the current gold price, between $1192 and $1240, is trading at key levels. Patterns change with the psychology of the market and it is important to adjust in real time. He concludes that ‘the gold market structure should reveal itself very soon, we just have to be patient and let the market come to us.’
The analysis is based on Elliott Wave patterns and market cycles. By Trader MC:
Gold is now at a key juncture and it should reveal its price action structure in the coming weeks. The first chart is my main Elliott Wave count and shows a Double Three Corrective Pattern (W)-(X)-(Y) in process from the top in 2011. You can see that Gold is currently in a corrective channel and should end soon a Wave (ii) which is also composed of a Double Three Corrective Pattern. If that scenario plays out Gold should enter a Wave (iii) that should send it to around $1550 which would be the minimum target…

This post was published at GoldSilverWorlds on September 18, 2014.

S&P Hits All-Time Record High As Russell “Death Cross” Looms

For the first time since July 2011′s plunge, and with almost half its components already in bear market, the Russell 2000 looks set to experience a ‘death cross’ in the next few days (50-day moving average crossing below the 200-day). But don’t look at that – the S&P 500 and Dow hit new record highs (despite market internals slumping) today ahead of the BABA IPO to keep the dream alive just a little longer ahead of tomorrow’s quad-witching malarkey. Today’s action was dominated by dismal housing data (demolishing yesterday’s exuberance in homebuilders), Poroshenko’s “Ukraine invasion” headlines, and hopes ahead of BABA and Scottish votes. USD down on the day, commodities down, bonds unch, stocks… UP.

This post was published at Zero Hedge on 09/18/2014.

ECB’s Targeted Lending Spree Starts Out As Flop; Modern Monetary Insanity

Following on the “success” of the ECB’s LTRO (Long Term Refinance Operation) which did nothing to spur lending and everything to create the biggest sovereign bond bubble the world has ever seen, ECB president Mario Draghi announced a TLTRO or Targeted LTRO on September 4.
The ECB’s intent is to spur lending.
Lending Spree Short of Expectations
Today the Financial Times reports ECB’s Lending Spree Short of Expectations.
The European Central Bank’s first offer of cheap four-year loans has fallen short of expectations, dealing a blow to president Mario Draghi’s hope of sustaining the eurozone’s ailing economy by expanding the central bank’s balance sheet.
Banks borrowed 82.6bn through the first of the ECB’s Targeted Longer-Term Refinancing Operations, or TLTROs, one of policy makers’ big ideas to revive the currency area’s recovery. A poll by Bloomberg earlier this week showed economists, on average, expected banks to bid for 174bn of loans from a maximum of 400bn.

This post was published at Global Economic Analysis on September 18, 2014.