18 Sobering Facts About The Unprecedented Student Loan Debt Crisis In The United States

The student loan debt bubble in America is spiraling out of control, and it is financially crippling an entire generation of young Americans. At this point, the grand total of student loan debt in the United States has reached a staggering 1.2 trilliondollars, and an all-time record high 40 million Americans are currently paying off student loan debts. Just when our young people should be planning on buying homes and starting families, they find themselves financially paralyzed by oppressive levels of debt. What makes all of this even worse is that only some of our college graduates are able to get the ‘good jobs’ that we promised them. So with limited job prospects and suffocating levels of debt, this generation of young Americans is increasingly putting off major life commitments such as buying a home and getting married. As a society, we really need to rethink how we are ‘educating’ our young people, because what we are doing now is clearly not working. The following are 18 sobering facts about the unprecedented student loan debt crisis in the United States…
#1 According to the Wall Street Journal, the class of 2014 is ‘the most indebted ever’…

This post was published at End Of The American Dream on October 7th, 2014.

France Crushes Socialist Welfare Dream, Admits “Living Beyond Its Means” For 40 Years

Facing up to the pressures of responsibility as a member of the European Union – having been told their treaty-busting budget plan was unacceptable – it seems France is resorting to the worst case scenario – cut spending! As Bloomberg reports, the glory days of France’s welfare model may be behind it, as France, which hasn’t had a balanced budget since 1974, admits “for 40 years we have lived beyond our means,” but French PM Valls is “convinced [France] can make up for lost time.” His plan – streamlining unemployment benefits, cutting bonuses for newborns, and pegging family allowances to household income (all of which amount to a de facto re-writing of France’s welfare rules), are being spun positively: “It’s not the end of a generous system,’ government spokesman Stephane Le Foll said yesterday. “It’s the end of spending that wasn’t useful – and that’s in order to preserve a system that is a costly one.”
France’s generous welfare system has come at a price – a budget that hasn’t been balanced since 1974 -and as we noted previously, the European taxpayers (read Germans) are not willing to accept it any longer. So, as Bloomberg reports…

This post was published at Zero Hedge on 10/09/2014.

Will The Central Bankers Invade Switzerland Next? – Episode 488

The following video was published by X22Report on Oct 9, 2014
German recession fears mount. Home-builders giving huge incentives to people to buy homes. The Swiss will vote on Nov 30 to go back to a gold back currency. Obama is planning to make huge amount of mass arrests. Uganda is being hit with an Ebola like fever. China gets advanced weaponry and the US pulls troops back. The Islamic State has setup a base inside Libya to recruit people. Nuland reports that sanctions will not be lifted until Ukraine’s sovereignty is restored. Russia says the UN needs to declare a buffer zone between Syria and Turkey and if the coalition states do this it is illegal.

Curious Why You Lost All Your Money On GTAT? Sorry, The Bankrupt Company Won’t Tell You

Before the Fed’s minutes unleashed the biggest stock market rollercoaster seen since the summer of 2011, by far the most notable event was Monday’s Lehman-like bankruptcy of Apple’s sapphire glass producer, GT Advanced Technologies, which without warning, went from a market cap of $1.5 billion to zero in the span of seconds after a market trading halt.
Much to the shock and dismay of its shareholders, none of whom had expected any bad news, let alone a bankruptcy filing, the company decided to add insult to injury when instead of at least providing an explanation why over a billion in equity had evaporated, all it had to say was this:

This post was published at Zero Hedge on 10/09/2014.

The Fourth Central Bank Gold Agreement – Started 27-9-2014 – What gives?

[This article was featured earlier this year in the Gold Forecaster & Silver Forecaster.] On 19th May 2014, the European Central Bank and 20 other European central banks announced the signing of the fourth Central Bank Gold Agreement. This agreement, which applies as of 27 September 2014, will last for five years and the signatories have stated that they currently do not have any plans to sell significant amounts of gold.
Collectively, at the end of 2013, central banks held around 30,500 tonnes of gold, which is approximately one-fifth of all the gold ever mined. Moreover, these holdings are highly concentrated in the advanced economies of Western Europe and North America, a statement that their gold reserves remained an important reserve asset, a statement made in each of the four agreements since then.
After 29 years of implied threats that gold was moving away from being an important reserve asset and the potential sales of central bank gold the gold price had fallen to $275 down from $850 in 1985. But the sales that were seen were so small that with hindsight they were seen as only token gestures. Today the developed world’s central banks continue to hold around 80% or more of the gold they held in 1970.
It only became clear subsequently that the real purpose behind these sales [from 1975] were to reinforce the establishment of the U. S. dollar as ‘real money’ and the removal of gold as such. The U. S. government would brook no competition from gold, but continued to hold gold [as money ‘in extremis’] in ‘back-up’.
Then in 1999 the euro was to be launched. It too needed to ensure that Europeans, who had a long tradition of trusting gold over currencies, would not reject the euro in favor of gold and turn to gold and its potentially rising price. So it was decided that while gold was to be retained as an important reserve asset, its price had to be restrained for some time, while Europeans were made to accept the euro as a reliable, functioning money in their daily lives.
To that end, major European central banks signed the Central Bank Gold Agreement (CBGA) in 1999, limiting the amount of gold that signatories can collectively sell in any one year. There have since been two further agreements, in 2004 and 2009. By the time you receive this, the fourth Central Bank Gold Agreement will be in operation. It begins on the 27th September. Here is the statement on the Agreement from the signatories:

This post was published at GoldSeek on 9 October 2014.

Gold Seeker Closing Report: Gold and Silver Hold Yesterday’s Gains While Dow Drops 2%

The Metals:
Gold climbed $10.56 to $1233.06 by a little after 8AM EST before it chopped back lower in New York, but it still ended with a gain of 0.1%. Silver slipped back to $17.329 in the last hour of trade before it edged back higher, but it still ended with a loss of 0.29%.
Euro gold rose to about 965, platinum lost $7 to $1271, and copper remained at about $3.03.
Gold and silver equities fell as much as 5% by early afternoon before they bounced back higher in the last hour of trade, but they still ended with about 3% losses.

This post was published at GoldSeek on 9 October 2014.

Gold Price – A Significant Bounce Off Support

In our article on September 23 we postulated that gold seemed to be setting up for a triple bottom, but it was too soon to tell for sure. As of this week gold has reached the level of support drawn from the two previous bottoms, and it has bounced off that support. It is not yet a robust bounce, but it is at least a first small sign that a long-term bottom may be forming.
In the chart below we can see the three bottoms that have formed at about the 1180 level. The recent bottom is not very prominent, but it hints at the possibility of a continued rally, and shows a window of opportunity beginning to open for gold bulls. The negative part of this picture is that the support line is part of a consolidation that is called a continuation pattern, which implies that it is just a pause before the preceding decline continues.

This post was published at GoldSilverWorlds on October 9, 2014.

Schizo Market Has Biggest Plunge In 6 Months Following Most Euphoric Surge Since 2011

Yesterday’s panic buying vertical ramp in stocks – decoupling from everything but the trusty partners VIX and AUDJPY – has been entirely unwound as The Dow drops over 300 points (nearly unchanged for 2014), Trannies tumble and Small Caps slump. Stocks all closed significantly lower – despite a late-day effort to lift – ending the day down from pre-FOMC Minutes. Treasuries closed 0-2bps higher in yield but had ignored equity exuberance and provided the reality check by the close. Real trading volatility ranges are surging in the major indices which historically has not been a good sign. The USD retarced some of the FOMC losses as Draghi chatter pushed EUR higher. Oil prices cratered under $85 as gold and silver rose (despite USD strength). Following yesterday’s biggest intrday swing since Nov 2011, the Russell 2000 saw its worst day in 6 months.
Today was the 4th most active (in terms of quotes/trades) ever.

This post was published at Zero Hedge on 10/09/2014.


The MSM was blathering about unemployment claims being at 2006 levels today. The market celebrated by dropping 300 points. The busy chart below shows the fascinating economic recovery we’ve experienced since the last time unemployment claims were this low. Average wage growth has stayed below the level of inflation. Real median household income is still 8% lower than it was in 2007. Mortgage applications are at 1997 levels. But Wall Street has somehow engineered higher home prices with no one applying for mortgages and millions of people taking home less pay.
Shortly after jobless claims reached today’s levels in 2000, the S&P 500 fell 45%.
Shortly after jobless claims reached today’s levels in 2007, the S&P 500 fell 55%.
This is as good as it gets with jobless claims.
Guess what happens next.

This post was published at The Burning Platform on October 9, 2014.

Obama Unleashes Op-Ed On ‘Millennials': “Welcome To This New American Economy”

Presented with no comment… (but a lot of ironic ‘bold‘-ing)…

History has dubbed you the ‘Millennials.’
You’re part of the first generation to grow up in the digital age. Some of you grew up with cell phones tucked into your book bags, while others can remember the early days of landline, dial-up internet. You’ve gone from renting movies on VHS tapes to purchasing and downloading them in a matter of minutes.
Today, more of you are earning college degrees than ever before? – ?and more young people from low-income families are getting a shot at higher education than previous generations. Along with having higher education levels, you’ve got a lower gender pay gap than other generations? – ?and we’re working to close it even further. Take all those things together, and it’s no surprise that entrepreneurship is in your DNA. One survey found that more than half of Millennials expressed interest in starting (or have already started) their own business.
So here’s something we know for certain: Your rising generation of Americans isn’t just adapting to a 21st-century economy. You’re actively changing it.
And we know that when we invest in your potential, rather than stack the deck in favor of the folks who are already at the top, our entire economy does better. It’s the reason we’ve expanded grants, tax credits, and loans to help more families afford college. It’s why we’re giving nearly 5 million Americans the chance to cap student loan payments at 10 percent of their income. And thanks to the Affordable Care Act, the number of uninsured young adults has fallen by nearly 40 percent over the past four years.
You may have graduated into the worst recession since the Great Depression, but today? – ?for all the challenges you’ve already faced, and after all the grueling work it’s taken to bounce back? – ?you’re in the best position to break into the newest sectors of the new American economy.

This post was published at Zero Hedge on 10/09/2014.

Gold Daily and Silver Weekly Charts – China Is Back From Holiday

“I have come to realize that the vast majority of decent, wonderful people have no idea how they are being hoodwinked, day in and day out, by the scum of this world. We are lied to, misled, bamboozled, suckered, cheated, misrepresented, conned, manipulated and royally screwed!
They take us to the cleaners day in and day out in every way possible. We, the people, pay the price of their cheating, their folly, their lying and their sheer stupidity.”
Pierre Rinfret
“How could I have done this? I was making a lot of money. I didn’t need the money. Am I a flawed character?’
Bernie Madoff
Silver was under pressure most of the day, while gold was able to gain a bit of ground after yesterday’s rally.
China is back from holiday for its ‘National Week.’ The markets that count for gold bullion are open again.
Nothing of particular consequence happened on the Comex in the markets or their warehouses for precious metals yesterday.
The associated trades with silver such as miners and royalty plays continue to get hammered. That they gained so sharply yesterday seems to suggest that the much remarked short interest in some of those plays really is that significant. I wonder if some of the ‘smart money’ isn’t advantageously picking up some positions on the cheap ahead of some forthcoming event.
As you know there are some real divergences between gold and silver, both in paper and physical levels, that have some of us shaking our heads a bit. You know, the kind of people who actually notice things and ask about them.

This post was published at Jesses Crossroads Cafe on 09 OCTOBER 2014.

Oct 9/ no change in gold inventory at the GLD/no change in silver inventory at the SLV/gold and silver rise/Dow plummets by 334 points/Ebola scare intensifies!

Gold closed up $19.30 at $1224.60 (comex to comex closing time ). Silver was dup 35 cents at $17.37
In the access market tonight at 5:15 pm
gold: $1224.50
silver: $17.37
GLD :as of 6 pm est no change in tonnage of gold at the GLD (inventory now at 762.08 tonnes).
SLV : as of 6 pm tonight we have no changes in inventory. (inventory now 349.071 million oz)
We have other stories including the continuing crisis with Ebola. The USA’s first Ebola patient has died.
We will discuss these and other stories
So without further ado………………
Let’s head immediately to see the data has in store for us today.
First: GOFO rates/
we are moving closer to backwardation!!
All months basically moved a little closer to the negative needle. On the 22nd of September the LBMA stated that they will not publish GOFO rates. However today we still received today’s GOFO rates
London good delivery bars are still quite scarce.
Oct 9 2014
1 Month Rate: 2 Month Rate 3 Month Rate 6 month rate 1 yr rate
.03667000% .046670% .056670% .1066700% .19667%
Oct 8 .2014:
1 Month Rate 2 Month Rate 3 Month Rate 6 month Rate 1 yr rate
.05500% .07000% .0825000% .1200% .22000%
Let us now head over to the comex and assess trading over there today,

This post was published at Harvey Organ on October 9, 2014.


Is it just a coincidence that the Federal Reserve’s 350% increase in its balance sheet has exactly tracked the 200% increase in the S&P 500 over the last five years? Inquiring minds want to know whether the five years of QE created the stock market rally or whether it is just a coincidence that they coincided. The Fed is supposedly done expanding at the end of this month. Do you think that has anything to do with the volatility in the last couple weeks? Where do we go from here?
Is the stock market like a shark? If it doesn’t keep ingesting QE, does it die?

This post was published at The Burning Platform on Oct 9, 2014.

Carl Icahn Is Hedging, Warns A Big Correction Is “Definitely Coming”

While he still holds many stocks, Billionaire investor Carl Icahn joins the ranks of many of his billionaire market-watchers and is “hedging with S&P Puts,” because he is “concerned about the whole economy.” As he explains in this brief clip, “you can’t keep an economy up just from The Fed,” and with The Fed withdrawing from its money-printing largesse, Icahn concludes, a big correction “is definitely coming, it’s just a matter of when.”

This post was published at Zero Hedge on 10/09/2014.

On The Failure Of The Narrative Of ECB Omnipotence

The strong do what they can, while the weak suffer what they must. – Thucydides, ‘The History of the Peloponnesian War’ (395 BC)
Global growth is really bad! Hooray!
That was the verdict of US markets yesterday, as the Fed minutes ‘revealed’ (to use the breathless phrasing of mainstream financial media) a ‘growing concern’ with the damaging impact of European torpor and a stronger dollar on US growth, and it’s a perfect example of why I’ve called a top in the Narrative of Central Bank Omnipotence. Not a top in market price levels (although I’m increasingly thinking that, too), but a top in market faith that price levels are completely determined by central bank policy. This is an observation that I’ve discussed at length (and perhaps ad nauseam) in recent Epsilon Theory notes like ‘The Ministry of Markets’ and ‘Fear and Loathing on the Marketing Trail’, so I won’t belabor that again here.
What’s interesting to me is not this latest success of the Narrative of Fed Omnipotence. No, what’s interesting to me is this week’s failure of the Narrative of ECB Omnipotence. The Fed minutes totally bailed the market out today and (truly) revealed the Fed as the only central bank with the Common Knowledge firepower to withstand a serious growth scare. The ECB, on the other hand, has lost an enormous amount of Narrative mojo over the past week. The perception of Mario Draghi has clearly shifted from Super-Mario, willing and able to do ‘whatever it takes’, to what we would call in Texas ‘all hat and no cattle’.

This post was published at Zero Hedge on 10/09/2014.

New York Times Admits Wages Haven’t Grown in 15 Years, Worst Since Great Depression

The following article from the New York Times is actually pretty awful. However, the admission that wages have failed to grow in 15 years is important. Particularly in light of the fact that we are five years into the second so-called ‘recovery’ since the turn of the century. These are recoveries that only Joseph Goebbels could love.
While the wage growth stagnation observation is helpful, what’s so sad about the article is that rather than dive into the underlying systemic issues driving this horrible statistic, the author spends most of the article explaining why we should be optimistic. It’s a nice try, but when systemic issues aren’t being addressed from a systemic standpoint, things don’t just magically get better.
Here are some excepts from the article as well as my commentary:
American workers have been receiving meager pay increases for so long now that it’s reasonable to talk in sweeping terms about the trend. It is the great wage slowdown of the 21st century.
The typical American family makes less than the typical family did 15 years ago, a statement that hadn’t previously been true since the Great Depression. Even as the unemployment rate has fallen in the last few years, wage growth has remained mediocre. Last week’s jobs report offered the latest evidence: The jobless rate fell below 6 percent, yet hourly pay has risen just 2 percent over the last year, not much faster than inflation. The combination has puzzled economists and frustrated workers.

This post was published at Liberty Blitzkrieg on Oct 8, 2014.