Gold Seeker Closing Report: Gold and Silver Gain Over 1%

Close Gain/Loss Gold $1165.80 $16.40 Silver $15.74 $0.18 XAU 67.87 4.27% HUI 160.51 3.89% GDM 503.10 3.72% JSE Gold 1016.12 -16.83 USD 87.54 -0.26 Euro 124.76 0.54 Yen 86.62 -0.47 Oil $77.74 $0.34 10-Year 2.360% 0.001 Bond 141.00 0.03125 Dow 17614.90 0.01% Nasdaq 4660.55 0.19% S&P 2039.68 0.07%
The Metals:
Gold waffled near unchanged in Asia and saw slight gains in London before it showed some weakness in midmorning New York trade, but it then shot back higher midday and ended near its late session high of $1172.97 with a gain of 1.43%. Silver surged to as high as $15.887 and ended with a gain of 1.16%.
Euro gold rose to about 935, platinum gained $9 to $1202, and copper climbed a couple of cents to about $3.03.
Gold and silver equities rose about 3% in the first half hour of trade before they pared their gains by midmorning, but they then rose to new highs in afternoon trade and ended with about 4% gains.

This post was published at GoldSeek on November 11, 2014.

More Robots: Google’s “Atlas” Robot Mimics “Karate Kid”; Flying Defibrillator “Ambulance Drone” Unveiled; Fed Has No Answer

Robotic technology continues at a rapidly expanding pace. Here’s a look at two new technologies.
Flying Defibrillator “Ambulance Drone”
Tech Crunch reports Flying Defibrillator ‘Ambulance Drone’ Cuts Response Time Down to Couple of Minutes
A Dutch engineer has created a flying defibrillator for emergency situations. The drone, called the Ambulance Drone, would be stationed at various points in the city. In an emergency, people on the scene can call it in and it arrives a few seconds later. The built-in defibrillator unit can be used by anyone and it allows doctors to monitor the situation after the shocks are administered.
The drone includes a webcam and loudspeaker and allows remote doctors to walk people on the scene through the process of attaching the electrodes and preparing the defibrillator. The creator, Alec Momont of TU Delft’s Faculty of Industrial Design Engineering, said that 20% of people can operate a defibrillator without instruction and the number rises when they have prompts from trained personnel.

This post was published at Global Economic Analysis on November 11, 2014.

China’s Latest Ghost Town: A $50 Billion Fake Replica Of Manhattan

“They are building stuff that nobody really wants or needs… and there will be a day of reckoning” sums up yet another mega ghost city project under development in China. As NBC News reports, China’s $50-billion knock-off of the Big Apple – near the port city of Tianjin, some 120 miles from Beijing – complete with its own Rockefeller Center and Twin Towers has been billed as the world’s largest financial center in the making. But this Manhattan still has a long way to go…
Ian Williams explains nothing has improved in China since we last highlighted the ghost city phenomenon…

This post was published at Zero Hedge on 11/11/2014.

How Much Does The CPI Understate Inflation?

Estimating the Effect of Hedonic Quality Adjustments on the Consumer Price Index
Having an informed debate over Hedonic Quality Adjustments is difficult due to the lack of comparable consumer price indices. A few exist, however, and today we will look at an index compiled byPriceStats, an off-shoot of MIT’s Billion Prices Project, which scrapes the internet for prices and compiles a daily index that aims to track inflation in real-time.
The time series eschews hedonic and seasonal adjustments and relies on sampling over 5 million products to produce a very different look at inflation (CPI included for comparison):

This post was published at Zero Hedge on on 11/11/2014.

Alan Greenspan Thinks That Gold Is Currently a Good Investment

Speaker: Alan Greenspan, President, Greenspan Associates LLC; Former Chairman of the Board of Governors, Federal Reserve System Presider: Gillian Tett, U. S. Managing Editor, Financial Times October 29, 2014, New York Council on Foreign Relations
TETT: I’m going to turn to the audience for questions in one minute, but before I do though, I just want to ask though, one of the really interesting chapters in your book is about gold. And there’s been a lot of media debate in the past about your views on gold.
You yourself oppose a question as to why would anyone want to buy this barbarous relic — I don’t know whether John Paulson is in the audience — but it’s an interesting question. But do you think that gold is currently a good investment given what you’re saying about the potential for turmoil?
TETT: Do you put…
GREENSPAN: Economists are usually perfect in equivocating. In this case I didn’t equivocate. Look, remember what we’re looking at. Gold is a currency. It is still by all evidences the premier currency where no fiat currency, including the dollar, can match it. And so that the issue is, if you’re looking at a question of turmoil, you will find, as we always have in the past, it moves into the gold price.
But the gold price is actually sort of half a commodity price, so when the economy is weakening, it goes down like copper. But it’s also got a monetary characteristic which is instrinsic. It’s not inbred into human beings — I cannot conceive — of any mechanism by which you could say that, but it behaves as though it is.
Intrinsic currencies like gold and silver, for example, are acceptable about a third party guarantee. And, I mean, for example at the end of World War II, or just at the end of it, Germany could not import goods without payment in gold.

This post was published at Gold Broker on Nov 11, 2014.

Gold Daily and Silver Weekly Charts – Volatility and G20

There is a G20 meeting coming up this weekend in Brisbane.
Some readers (h/t Jeff in particular) are following the developments on that front in case there is an overt move to dethrone the US dollar.
I have watched the meetings closely for the past two years. As you know, there is a movement internationally to begin to construct alternatives to the dollar reserve currency regime.
Gold is surprisingly volatile, with sweeps up and down this week. This is even more marked because this is an inactive month on the Comex with little actual delivery and warehouse movement.

This post was published at Jesses Crossroads Cafe on 11 NOVEMBER 2014.

Black Tuesday – – The War Party Won

The robots and day traders greeted last Tuesday’s Republican election sweep with another kneejerk rally because the GOP’s new Capitol Hill dominance will allegedly be good for investors. Would that there were any real investors left – -but, in any event, what the election really did was populate the Imperial City with a huge new phalanx of neocons and hawks.
In a word, the War Party won. This means that the Warfare State will prosper, the budget deficit will again soar, more government shutdowns will materialize and the day of fiscal reckoning will come that much sooner.
How that is good for investors is hard to fathom. But never mind. The casino previously known as the stock market trades one day at a time based on the monetary juice and word clouds emitted by the world’s central banks. This new Wall Street casino anticipates no future, remembers no history, discounts no risks and discovers no honest prices. It is a hothouse colony of the central banks.
To be sure, once upon a time the prospect of escalating war and blood in the trenches caused markets to tank. Investors knew that cranking up the war machine meant higher taxes, currency inflation, capital market dislocations, economic regimentation, trade disruptions and productive asset destruction. They down-rated the value of current profits accordingly.
But we are in a different world today – – an unreal one where government debts are massively monetized and wars are fought on the far side of the earth with high altitude bombers, sea-launched cruise missiles and drones piloted from the Nevada desert. When boots are needed on the ground, they are worn by mercenary soldiers who are hired from an underclass that has been discarded by a failing economy. And when it comes to funding such remote and antiseptic warfare, Washington extracts heavy payroll levies (income and social security taxes) from the diminishing share of citizens still employed, and places enormous liens on unborn taxpayers (i.e. borrowing) to cover the rest.
The fast money traders sweat none of this, however. The blowback from aboard and the payback of public debt is about tomorrow. The stock averages are about today’s ECB leak to Reuters or the latest Hilsenramp missive from the Fed.
Likewise, the hard-pressed main street masses take their tax-shrunken paychecks to the grocery store and the mall, hoping to get by for another week. So doing they remain utterly disconnected from the strum and drang of the beltway war rooms. They encounter Washington’s costly and destructive foreign excursions only as war game videos on CNN and as defense jobs and other military pork spread widely among the provinces.
The War Party thus has no political burden in making its case. Money politics, remote control warfare, and anti-Islamic hysteria have been more than enough to purge opposition from both the left and the right.

This post was published at David Stockmans Contra Corner on November 11, 2014.

Let Them Eat… Student Debt

This past Friday I like many others were waiting for my comedic coffee break to be broadcast over the financial media outlets. When the set up was told I grinned in amusement and expectation. When the punchline was delivered I almost fell off my chair as I buckled in uncontrollable laughter. That punchline? The unemployment rate now stands at 5.8% Now that’s comedy!
Just when I felt my sides couldn’t take any more unbeknownst to me the preceding line of comedic humor unleashed by the so-called ‘smart crowd’ was one line of ridiculous humor laced drivel after another.
What made this whole laugh-fest turn from outright humor to a living tragedy is that many of the people discussing these ‘facts’ are both in positions of power, or worse, positions of teaching. All I could envision as I listened was George Carlin looking down saying, ‘Man I need to get back there. What material! Who’s in charge here I need a cab?!’
The more one listened to the analysis given as they dissected the data – the more the laughs kept coming. It was a bonanza of comedy from one channel to the next as it seemed financial media morphed into its own version of a standup open-mike show across the spectrum.
A few points that were laughable but made me down right angry is the continued comparison as well as instructional overtones we are told to perceive from Europe and other countries as they deal with their financial mess and unemployment horrors.
I have nothing against these other nations, however, what I do hold vehemently too is the fact: the more these pernicious meddling intellectuals try to solve our problems as if our solutions will come from following what’s happening over there? The more problems they create here. For I would like to remind the chin scratching set – We are not Europe nor anywhere else. Period!
Just for the record I would like to point out one or two general observations that seem to get lost (or purposely ignored) by the parchment pundits.

This post was published at Zero Hedge on on 11/11/2014.

Not Yet Time to Celebrate a Market Turnaround

The Wall Street crowd liked what they heard last week and pushed the Dow Jones to a new high. In particular, the trio of the Republican landslide victory, an overall positive Q3 earning season, and a good jobs report that showed unemployment dropping to 5.8% was behind the rally.
And what a rally it was. Since the start of earnings season on October 8, the S&P 500 has increased by 3% and has bounced by an eye-popping 9.1% from the October 15 low.
Many of my peers have already popped the champagne and drunkenly declared a coast-is-clear resumption of the great bull market.
Not so fast. There was a trio of negative news pieces last week that tells me there is more to be worried about than there is to celebrate.
‘V’ Is for Vulnerable… Not Victory You shouldn’t trust ‘V’-shaped bottoms.
Instead of being encouraged by the 9% moonshot since the October 15 low, I am even more skeptical. The S&P 500 shot up by 220 points in just three weeks, which tells me that the rubber band of stock market psychology is overstretched.

The stock market’s massive mood swing from fear to greed can change just as quickly to the other direction. Sharp trend reversals followed by sharp rebounds is not a kind of bottom building behavior.
The rally has been accomplished with low trading volume – a classic definition of an unsustainable bounce because it shows that the rally was more from a lack of sellers rather than an abundance of buyers.

This post was published at Mauldin Economics on NOVEMBER 11, 2014.

Today’s 3:59 PM WTF Moment Of The Day

When you absolutely, completely, undoubtedly need the Dow and S&P 500 to close green at new record closing highs…

Unleash the last second VIX smasher algo…
The first push down with VIX (and thus up with stocks) stalled out ‘alarmingly’ at 1554ET.. and the S&P 500 dropped back perilously into the red… but thanks to someone’s decision to sell volatility from over 13.00 to 12.75 instantaneously was just enough momo and just enough time to drag the Dow and S&P across the finishing line green…

This post was published at Zero Hedge on 11/11/2014.

QE isn’t dying, it’s morphing

A funny thing happened on the way to the ‘end’ of the multi-trillion dollar bond buying program known as QE – the Fed chronicles. Aside from the shift to a globalization of QE via the European Central Bank (ECB) and Bank of Japan (BOJ) as I wrote about earlier, what lingers in the air of ‘post-taper’ time is an absence of absence. For QE is not over. Instead, in the United States, the process has simply morphed from being predominantly executed by the Federal Reserve (Fed) to being executed by its major private bank members. Fed Chair, Janet Yellen, has failed to point this out in any of her speeches about the labor force, inflation, or inequality.
The financial system has failed and remains a threat to us all. Only cheap money and the artificial inflation of asset values can make it appear temporarily healthy. Yet, the Fed (and the Obama Administration) continue to perpetuate the illusion that making the cost of (printed) money zero by any means has had a positive effect on the population at large, when in fact, all that has occurred is a pass-the-debt-ponzi-scheme co-engineered by the Fed and big US bank beneficiaries. That debt, caught in the crossfires of this central-private bank arrangement, is still doing nothing for American citizens or the broader national or global economy.
The Fed is already the largest hedge fund in the world, with a book of $4.5 trillion of assets. These will plummet in value if rates rise. Cue the banks that are gearing up their own (still small in comparison, but give them time) role in this big bamboozle. By doing so, they too are amassing additional risk with respect to interest rates rising, on top of all their other risk that counts on leveraging cheap money.
Only the super nave could possibly believe that the Fed and its key banks haven’t been in regular communication about this US Treasury security shell game. Yet, aside from a few politicians, such as former Congressman Ron Paul, Congressman Sherrod Brown and Senators Bernie Sanders and Elizabeth Warren, the notion that Fed policy has helped bankers, rather than other people, remains largely divorced from bi-partisan political discussion.
Adding more fuel to the central-private bank collusion fire, is the fact that the Fed is a paying client of the JPM Chase. The banking behemoth is bagging fees for holding and executing transactions on the $1.7 trillion New York Fed’s QE mortgage portfolio, as brilliantly exposed by Pam Martens and Russ Martens.
Wouldn’t it be convenient if JPM Chase was also trading this massive mortgage book for its own profits? Or rather – why wouldn’t they be? Who’s going to stop them – the Fed? Besides, they hold more trading assets than any other US bank, so why not trade the Fed’s securities ostensibly purchased to help the public – recover?

This post was published at Nomi Prins on November 10, 2014.

Economic Collapse News 11_11_2014: Petrodollar rejection goes Global

The following video was published by Paul Sandhu on Nov 11, 2014
Petrodollar Panic? China Signs Currency Swap Deal With Qatar & Canada / The march of global de-dollarization continues. In the last few days, China has signed direct currency agreements with Canada becoming North America’s first offshore RMB hub, which CBC reports analysts suggest “could double maybe even triple the level of Canadian trade between Canada and China,” impacting the need for Dollars. But that is not the week’s biggest Petrodollar precariousness news, as The Examiner reports, a new chink in the petrodollar system was forged as China signed an agreement with Qatar to begin direct currency swaps between the two nations using the Yuan, and establishing the foundation for new direct trade with the OPEC nation in the very heart of the petrodollar system. As Simon Black warns, “It’s happening… with increasing speed and frequency.”

With Bond Traders Away… VIX-Buyers Will Play

As one would expect with half the market away, US equity volumes were terrible (but fiunnily enough not much worse than yesterday) with most major indices trading in a very tight range around unchanged. Overnight strength in stocks on the back of USDJPY’s momo ignition after Reuters headlines on Japan tax delays. Trannies, however, surged out of the gate, stalled into the European close, tumbled on oil weakness, then rallied back in the last hour – amid now news. Treasury futures were very quiet and went nowhere. The real story of the day was in the FX markets, which saw notable USD weakness led by EUR and AUD strength, and a late day rally in JPY (USDJPY tagged 116.00 stops then faded… that’s 8 handles in 9 days). The USD weakness – which started around the European close – sparked a rally in copper, gold, and silver (and gold miners surged). Oil prices tested cycle lows before also bouncing back in a v-shaped recovery to close higher. Despite early intraday record highs in Dow and S&P futures, they ended practically unchanged as VIX was notably divergent. Late-day panic-buying lifted the Dow ( 0.007%), S&P, and Russell 2000 green.

This post was published at Zero Hedge on 11/11/2014.

Bizarre Love Triangle – Stocks, Gold And Oil

Gold and crude oil have been in a slow motion free fall of late, even as U. S. equities rally but ConvergEx’s Nick Colas looks at the value of each asset class relative to the other two and assess their historical relationship. For example, you currently need 1.72 ounces of gold at $1178 to ‘Buy’ one S&P 500 index at 2032. That is cheap to the 30-year average of a 1.86x ratio, putting fair value on U. S. stocks 8% higher. Separately, it currently takes 25.1 barrels of crude to buy the S&P 500, versus the 30-year average of 27.8, making stocks look cheap by 11%. Closing out this analytical triangle: you need 14.5 barrels of oil to buy an ounce of gold, but the 30-year average is 16.6. Bottom line using these long-term ranges: U. S. stocks look mildly cheap to oil and gold, but drops in those commodities would erase the difference just as easily as a further rally in stocks. Gold looks cheap relative to oil and should be $170 higher, or oil should trade closer to $71.
Via ConvergEx’s Nick Colas,
Would you rather have an ounce of gold or 611 gallons of crude oil? Both cost the same amount as of Friday’s close: $1178. The former has an unrivaled long-term track record of holding value; every ounce of gold ever mined is still worth that not-insignificant $1178. Everyone from gun-toting preppers to the world’s central banks to blingy Rolex-wearing global oligarchs agree it is a good asset to own. On the other hand, the oil – once handed over to your friendly neighborhood refiner – will yield 275 gallons of gasoline plus other hydrocarbon products. That’s enough gas for the average American to drive 6,875 miles, or almost 6 months of daily transportation.

This post was published at Zero Hedge on 11/11/2014.

Why Janet Yellen Needs Her Own Magic Show

What do Siegfried and Roy have in common with Federal Reserve Chairman Janet Yellen?
Shortly after the Bureau of Labor Statistics released unemployment data last month showing that joblessness had dropped below 6% for the first time since the 2008 crash, the Federal Reserve announced it would stop government bond purchases; Quantitative Easing is history.
The Federal Open Market Committee’s (FOMC) October 29 announcement states:
Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate. On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing. …
The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. … Accordingly, the Committee decided to conclude its asset purchase program this month.
To better understand what all that means in English, we need to back up a bit.
In 2012, Principal Global Investors Economist Robin Anderson noted of Yellen:
Janet Yellen … is the latest in a string of Fed bigwigs to get behind an idea of using explicit inflation and unemployment targets to inform the market about the Fed’s future plans – forward guidance, in Fed-speak. …
Essentially, the idea is to set up explicit thresholds for inflation and unemployment measures (the two mandates for the Fed) to help set expectations about the future of monetary policy if there should be a disconnect between the two.

This post was published at GoldSeek on 11 November 2014.

As QE3 Ends, Fed Reserves Have Biggest Drop Since Start Of QE

While we understand the Fed’s desire to pass the monetization baton seamlessly from the end of QE3 in the US, to the expansion of QE in Japan first, and then the launch of public QE by the ECB, things may not be quite as smooth as desired . Because a quick glance at the latest Fed H.4.1 statement reveals something unexpected: in the past 4 weeks, the level of total reserves with Fed banks (i.e., excess reserves created by QE), have seen their biggest plunge since the launch of QE in March of 2009. As of November 5, the total amount of outstanding reserves tumbled to $2.561 trillion, down a whopping $188 billion in the past 4 week, well below the $2.8 trillion recorded in August, and at a level last seen in February 2014.

This post was published at Zero Hedge on 11/11/2014.