Gold Price Higher Today On Short Squeeze

GOLD FUTURES went significantly higher today. COMEX GOLD for December delivery gained 0.90%, or $10, to settle at $1,104.10. The high of the day was set at $1,108.50.
Reuters writes that Dennis Lockhart, Atlanta’s Federal Reserve President, said a Fed decision to raise interest rates should come soon, ‘but his prepared speech did not repeat recent comments in which he said he was ready to vote for a rate hike next month.’
Mainstream media keeps on reiterating thatGOLD PRICES have fallen with the prospect of rising rates.
Today’s gold price, however, could already be pricing an interest rate hike. The key question is whether gold did not sell off too hard driven by (too) bearish market sentiment.

This post was published at GoldSilverWorlds on August 10, 2015.

If You Are A Chinese TV Host, Do NOT Call Mao Zedong An “Old Son Of A Bitch”

When China’s equity bubble burst and the SHCOMP tumbled unceremoniously back to earth on the back of a harrowing unwind in the half dozen or so backdoor margin lending channels that had served to pump CNY1 trillion into an already inflated stockMARKET, Beijing went looking for scapegoats. The ensuing crackdown on “malicious” sellers and “hostile foreigners” as well as a directive to reporters to avoid using certain phrases such as “rescue theMARKET” served as poignant reminders to the world that although China is indeed making small steps towards liberalizing its markets, outcomes deemed undesirable by the Politburo will be “corrected” – and right quick.
Similarly, when a viral documentary about the country’s pollution problem began making the rounds back in March, the government moved quickly to suppress discussion as FT reported that “propaganda authorities directed news outlets not to publish stories about Under the Dome, the emotional first-person documentary by a former state television anchor.”
Given the above, and given everything we know about China’s propensity for censorship in all its forms, you can imagine that one thing you would not want to do in China if you were, say, “one of the most recognizable faces” on a state-run television station, is call Mao Zedong “an old son of a bitch,” but that’s exactly what Bi Fujian did back in April, and now Beijing’s media watchdog has “recommended” that Bi be “severely punished.

This post was published at Zero Hedge on 08/10/2015.

Manufacturing’s Productivity Lead Could be Gone

Economy-leading productivity performance – that’s long been one of the biggest advantages domestic manufacturing’s champions have long enjoyed over those who dismiss the sector’s importance. So imagine how disappointed I am to report that, by at least one key measure, that lead is gone.
Late last month, the Labor Department issued its latest report on multi-factor productivity in manufacturing. This broadest measure of efficiency is different from and much less current than the labor productivity figures that come out each quarter, because many more inputs are studied. Moreover, detailed data take even longer to issue – which is why these new manufacturing numbers only take us through 2013. It’s also crucial to keep in mind that productivity is one of the most difficult concepts economists study, and in fact, there’s a lively debate taking place right now about whether the government data are significantly understating America’s performance.
Nonetheless, the new figures, which also revise the 2011 and 2012 readings, are unmistakably bad news both for manufacturing itself and for the broader economy it helps undergird.

This post was published at Wall Street Examiner by Alan Tonelson – August 10, 2015.

China Devalues Yuan Fix By Most On Record, Plunges To 28-Month Lows Against The Dollar

Chinese stocks are holding on to modest losses in the pre-open as, just as we have been warning, the PBOC weakens the Yuan fix by the most on record. The 1.9% devaluation sends the Yuan to itsweakest since April 2013. Gold is leaking lower as the offshore Renminbi collapses by the most since Oct 2011.
PBOC weakens Yuan fix by 1.9% – the most ever…

This post was published at Zero Hedge on 08/10/2015.

The Oil Train Boom Is Over, Railroads Get Slammed

As coal shipments dry up andOIL PRICES are falling to their lowest levels in months – and even flirting with fresh six-year lows – the rail industry is getting slammed.
Oil-by-rail shipments were down 13 percent in July from a year ago asOIL PRICEShave crashed. And the ongoing transition to natural gas and renewable energy for electricity generation caused coal shipments on the railways to fall by 12.5 percent over the same period.
As far as oil-by-rail goes, there are a few reasons for the downturn in activity. First, a series of derailments and explosions on the railways has heightened scrutiny.
But more importantly, oil pipelines continue to come online, obviating the need for rail. Building pipelines takes many years due not only to construction, but siting and permitting as well. The surge in drilling in places like North Dakota resulted in inadequate pipeline capacity, thus the skyrocketing crude-by-rail shipments.

This post was published at Wolf Street on August 10, 2015.

Inside The Swiss Franc LIBOR Rate Rigging Chatroom: 6 Years Of Manipulation

One of the nice things about the multitude of lawsuits and settlements surrounding the concerted effort by Wall Street’s largest banks to manipulate the world’s most important benchmark rates is they’ve produced a litany of hilarious chat transcripts that include such gems as “mess this up and sleep with one eye open at night” and the always popular, “if you ain’t cheatin, you ain’t tryin.”
Now, courtesy of the appendix attached to the latest LIBOR-related suit brought against Wall Street (and one hedge fund), we bring you six years of Swiss franc LIBOR manipulation presented in chronological order. Highlights here include:

This post was published at Zero Hedge on 08/10/2015.

Gold – the Bounce

Of course those biased toward gold will relay the rally as big volume, as if this were some sort of fresh buying that warrants cheering when in fact it is a short-cover rally. This is the bounce our computer has projected without bias or passion, minus the hyperbole. We can see that the Energy Models turned at the low and bottomed on July 23. The Daily Bullish Reversal stands at 1109 and a closing above that level will confirm the rally.
This is what Socrates wrote that was provided to the beta testers:

This post was published at Armstrong Economics on August 10, 2015.

Mapping The “Not Donald Trump”-ness Of GOP Candidates

Ever aware of the potential for change, GOP Presidential candidates face a tough balance currently. As The Washington Post explains, should Trump’s ‘burn-it-down’ aggression ever cross one too many lines, around 20% of Republicans will be looking for someone else to support – someone who didn’t think they were a total idiot for supporting Trump in the first place. Based on their responses and statements, WaPo has quantified the “Trumpness Factor” for each of the GOP candidates…
An important note on these rankings… expect them to change…
SOURCE

This post was published at Zero Hedge on 08/10/2015.

Governments Don’t Really Want Clean Energy; Economic Madness In US and Spain

A curious thing is happening in the battle on carbon. Solar panels are finally becoming cheap enough and efficient enough to warrant usage, without government subsidies, at least in sunny places.
Everyone should be happy. Right?
Instead we have tariffs, fees, and taxes on those who use solar panels.
In effect, when solar energy made no economic sense, companies received subsidies, now that solar makes sense, many governments want nothing to do with it.
Solar Energy Storage is Worse Than Nuclear Spillage
In sunny Spain, Solar Energy Storage is Worse Than Nuclear Spillage
Storing solar energy in a battery in Spain is more criminal than spilling radioactive waste. That’s the implied message written between the lines of a recently drafted law poised for fast-track approval by the government of Spain. Proposed fines for residential and SME use of solar energy self-consumption will be as high as 60 million ($67.7 million).

This post was published at Global Economic Analysis on August 10, 2015.

Why China Can’t Unleash Major Stimulus (In 3 Simple Charts)

It appears – according to the narrative assigned by the mainstream media – that any weakness in asset prices should be bought because China will inevitably have to unleash pure QE (as opposed to the modestly watered down version currently underway) or some combination of RRR cuts. This is ‘western’ thinking as the go to policy of the rest of the world’s central banks has been – put on pants, print money, paper over cracks, proclaim victory. However, in China there is one big problem with this… stoking inflation… and most crucially the social unrest concerns when suddenly a nation of newly minted equity losers can no longer afford their pork (which is facing record shortages)…
As SocGen notes, the infamous pork cycle is heating up again…

This post was published at Zero Hedge on 08/10/2015.

Worst Year for Car Sales in Japan since Earthquake, Debauched Yen of No Help

Japanese consumers have borne the brunt of Abenomics even as the government has coddled Japan Inc., and as the Bank of Japan’s no-holds-barred money-printing campaign has pumped upTHE STOCK MARKET.
They’ve had to digest a jump in the consumption tax, declining real incomes, and a devalued yen that makes import purchases, such as gasoline and a million other things, more expensive and that moves trips to foreign countries, long a cherished activity for the inhabitants of the island nation, out of reach.
It has shown up in the Consumer Confidence Index, released today by the Cabinet Office. The survey, covering households of two or more persons, paints a dreary picture. In July, the index fell 1.4 points to 40.3, the lowest level in six months. All sub-indices were down: ‘overall livelihood’ fell to 38.1; ‘income growth’ – a sad joke in Japan – fell to 39.6; ‘employment’ fell to 44.7; and ‘willingness to buy durable goods,’ such as cars, fell to 38.8.
Japanese households haven’t been exactly an enthusiastic lot. In the years between 2004 and 2007, the Consumer Confidence Index ranged from 45 to 50. But in early 2007, it began diving. By the time their general malaise had pushed the index down into the mid-30 range, the Financial Crisis blew up, pushing the index down even further. It bottomed out at 27. Consumer confidence then regained some feeble momentum to vacillate between 40 and 43, only to be felled by the horrific earthquake and tsunami of March 2011.

This post was published at Wolf Street on August 10, 2015.

New Study Exposes The “Dark Side” Of ETFs

Ever since we heard that some of the largest ETF issuers were lining up emergency liquidity lines to tap in the event all the retail money that’s piled into things like HY debt suddenly decides to head for the exits, we’ve gone out of our way to explain just why it is that the likes of Vanguard would consider paying out redemptions with borrowed money as opposed to selling the underlying assets.
The problem is that in the context of the post-crisis regulatory regime, banks are no longer willing to hold large inventories of securities and so, when a bond fund manager facing large outflows tries to transact in size, he or she will likely be confronted with an extremely thin secondary market. Rather than risk dumping a large amount of assets into a market with few buyers and thus facilitating a fire sale atmosphere, fund managers are considering paying out investors who sell with borrowed cash and selling off the underlying assets slowly as the market permits.
ETFs and other portfolio products mask this problem as long as flows are diversifiable. That is, if fund manager A is experiencing outflows, that’s ok as long as portfolio manager B is seeing inflows. However, once flows become unidirectional (i.e. everyone is selling), then managers will need to go and sell the underlying assets and that, in today’s market, is a big problem. Thus, ETFs give the illusion of liquidity – that is, investors assume there’s no problem because they can trade in and out easily, but should the flows suddenly all head in the same direction everyone will quickly discover that, as Howard Marks put it, an ETF “can’t be more liquid than the underlying.”

This post was published at Zero Hedge on 08/10/2015.

Gold Daily and Silver Weekly Charts – Bottom Scraping the Silly Season

Gold and silver popped a bit today, from what can only be described as a ‘deeply oversold’ condition. And weakness in the dollar index certainly was a factor, although again it is good to keep in mind that the DX index is largely outdated, and just the inverse of the Euro which is undergoing its own set of secular and systemic problems.
Bottoms and tops tend to be marked by extremes. There are extremes in sentiment of course, and extremes in the measures by which those who feed off the productive economy seek to hand off their ‘investments’ to others, and to wring the last dimes out of the public.
I think we might be approaching such a point in the bond and equity markets. And we have certainly been seeing extremes in sentiment with regard with gold and silver in both directions here.
Of course we are well familiar with the ‘pet rocks’ crowd, who are falling all over themselves to say increasingly absurd and self-referential things largely about personal taste and bias that do not reference the current reality and even history. The central banks of the world became net buyers of gold in 2006 or so, and that this buying of physical bullion is continuing to grow in statistics that are easily discovered if one looks for them. This is not to be disregarded, and yet it is.
But in fairness, such times also give rise to some hyperbole on the part of the beleaguered metals bulls, and some misconstruing of what is happening in some of the markets, in their enthusiasm. And is more generally observable, there is often a creeping inflation of sensational headlines for internet ‘clicks’ which translate to readership and dollars.
A recent example was describing the actions of JPM in making a large amount of bullion available to cover demand recently as dramatically ‘saving the exchange from default.’

This post was published at Jesses Crossroads Cafe on 10 AUGUST 2015.

This Wasn’t Supposed To Happen: Household Spending Expectations Cras

One of the biggest drivers of the so-called recovery (in addition to the Fed’s $4.5 trillion balance sheet levitating te S&P500 and the offshore bank accounts of 1% of the US population) has been the US consumer: that tireless spending horse who through thick, thin, recession and depression is expected to take his entire paycheck, and then some tacking on a few extra dollars of debt, and spend it on worthless trinkets.
Sure enough, for the past 8 years, said consumer has done just that and with the help of the endless hopium and Kool-Aid dispensed by the administration (who can forget Tim Geithner’s August 2010 op-ed “Welcome to the Recovery“), and by the political and financial propaganda media, spent, spent and then spent some more hoping that “this time it will be different.”
This all came to a screeching halt earlier today when courtesy of the latest New York Fed Survey of Consumer Expectations, we learned that the US consumer has finally tapped out. Households reported that they expected to increase their spending by just 3.5% in the next year, a major drop from the 4.3% the month before. This was the lowest reading in series history.
Worse, when adjusting for household inflation expectations, which have been relatively flat if modestly declining around 3%, real spending intentions, when adjusted for inflation, just crashed to a barely positive 0.5%, down over 60% from the prior month. This too was the lowest print in series history.

This post was published at Zero Hedge on 08/10/2015.

AUGUST 10/CHINA ADDS ANOTHER 24 TONNES TO ITS OFFICIAL RESERVES/GOLD BREAKS ABOVE 1100.00 AND SILVER BREAKS THROUGH THE 15 DOLLAR BARRIER/AT THE COMEX 15.2 TONNES OF DEALER (REGISTERED GOLD) LEFT…

Good evening Ladies and Gentlemen:
Here are the following closes for gold andSILVER TODAY:
Gold: $1104.70 up $10.10 (comex closing time)
Silver $15.29 up 47 cents.
In the access market 5:15 pm
Gold $1104.50
Silver: $15.28
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a poor delivery day, registering 18 notices for 1800 ounces Silver saw 0 notices for nil oz
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 232.45 tonnes for a loss of 70 tonnes over that period.
In silver, the open interest fell by 3,877 contracts despite the fact that silver was up 15 cents in price on Friday. The total silver OI continues to remain extremely high, with today’s reading at 179,186 contracts In ounces, the OI is represented by .8968 billion oz or 128% of annual global silver production (ex Russia ex China). This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end as they continue to raid as basically they have no other alternative.
InSILVER WE had 0 notices served upon for nil oz.
In gold, the totalCOMEX GOLD OI rests tonight at 426,096. We had 18 notices filed for 1800 oz today.
We had no change in gold leaving the GLD today / thus the inventory rests tonight at 667.93 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. I thought that 700 tonnes is the rock bottom inventory in GLD gold, but I guess I was wrong. However we must be coming pretty close to a level of only paper gold and the GLD being totally void of physical gold. In silver, we had no changes in silver inventory at the SLV, / Inventory rests at 326.209 million oz.
We have a few important stories to bring to your attention today…

This post was published at Harvey Organ Blog on August 10, 2015.

Towards A State Of Near Chaos…

Yes, there is such a thing as ‘the public,’ a term that derives from the ancient Latin, populous (the people), via publicus (of the people), via old French, public – pertaining generally to the mass of adults dwelling in a polity, a society under (political) governance. In the USA, government is vested as a republic, also from the Latin, res publica, meaning the public thing, the vessel that contains the public.
I present these terms to clarify how our society is cracking up. The American public, we the people, lately swoon into a morass of multi-dimensional failure: failure to control their economic lives, to regulate their appetites and their bodies, to understand what is happening to them, to fend off the propaganda and distractions that disable them, and to properly express and direct their wrath at those elements of the polity who deserve it.
True, their awful, epic failures at this moment in history are largely engineered and aggravated by those who have captured the polity and turned it into a looting and racketeering engine. The net result, though, is a self-reinforcing circle of degradation that rots the collective ethos of the public while it destroys the vessel of the republic that contains it.

This post was published at Zero Hedge on 08/10/2015.

There Are 4,000,000 Fewer Jobs For Americans Aged 25 to 54 Than In December 2007-Episode 738a

The following video was published by X22Report on Aug 10, 2015
Greece believes soon they will have a bail-out deal, most likely no deal will be made. Euro zone sentiment declines. Jobs are disappearing, and youth employment is getting worse. The economy continues to collapse, there are now less jobs than in 2007. Russia getting ready to issue payment cards which are not connected to the private western central banking system.

And The Biggest Beneficiary Of The Greek Crisis Is…

While it was certainly no secret that Germany, the EMU’s bastion of prudent finances and sound money, was no fan of the fiscally irresponsible eurozone periphery going into 2015, the extent to which Berlin’s relationship with Athens and the Greek people deteriorated over the course of six months of bailout negotiations was truly remarkable.
To let former Greek Finance Minister Yanis Varoufakis tell it, the German finance ministry was determined to push Greece from the eurozone from the time Syriza swept to power in January on an anti-austerity platform, and while it was clear from the beginning that the ideological divide between Varoufakis and German FinMin Wolfgang Schaueble was likely unbridgeable, the relationship between the two eventually transformed Schaeuble into a symbol of repression for the Greek populace.
Tensions between the Greeks and the Germans eventually reached a boiling point when, in a farcical effort to extract war reparations Athens claims it’s still owed from World War II, Greece began showing looped video footage of the Nazi occupation to commuters on public transportation.
Germany would ultimately have the last laugh after Schaeuble and Angela Merkel extracted a humiliating set of concessions from Greek PM Alexis Tsipras and while it’s true that the German taxpayer is on the hook yet again for a Greek bailout, a new report argues that for all the sharp-tongued criticism and Grexit threats, it is none other than Germany that has benefited the most from the ongoing crisis in Greece. Here’s AFP:

This post was published at Zero Hedge on 08/10/2015.