Despite Economic ‘Recovery’ Foods Banks Can’t Meet Demand

Since at least 2010, economists have been telling us that our nation is recovering and all is well. Our jobs are coming back, GDP growth is back on its previous course, andTHE STOCK MARKET is booming. But at the end of the day, those numbers don’t mean squat when so many people are still struggling to feed themselves.
AP reports that despite our supposed economic recovery, the number of people who need food assistance continues to climb across the United States. One food bank in Massachusetts has experienced a 7.6% increase in food distribution over the past year, while a New Mexico food bank had a 15% increase

This post was published at The Daily Sheeple on August 13th, 2015.

Gold Offers The Most Profitable Secular Opportunity

July was a horrible month forPRECIOUS METALS PRICES. Sentiment reached levels never seen before. As metals and the miners broke through a long term support line, so did pessimism.
To get an idea of the seriousness of pessimism, we are including a very long term chart going back to 1992 (courtesy of Sentimentrader). As readers can see, market sentiment in the last 2 years is worse than the bear market lows of 1998 – 2000.

This post was published at GoldSilverWorlds on Aug 13, 2015.

Get Me the Hell Out of Here

Manufacturers Vote With Their Feet
Manufacturers in Illinois have had it with tax hikes after tax hikes coupled with the most costly workers’ compensation setup in the nation. And businesses are voting with their feet. In July, five firms left Illinois for good.
The Illinois legislature is to blame. Pro-union Democrats have been in control of Illinois for decades. Mike Madigan has been House Speaker every year but two since 1983.
Chicago Magazine labeled Madigan “Velvet Hammer” and the Real Governor of Illinois.
Today, Hoist Lifttruck threw in the towel on Illinois. Interestingly, the company is located right across the street from Madigan’s district.
Six Firms Leave Illinois Since Mid-July
The Illinois Policy Institute reports Manufacturer Moves Out of Madigan’s Backyard, Cites Unfriendly Business Climate.

This post was published at Global Economic Analysis on August 13, 2015.

U.S. Containerized Exports Fall Off the Chart

‘Many of our major trading partners are experiencing stalled or slowing economies, and the strength of the US Dollar versus other currencies is making US goods more expensive in the export market.’ That’s how the Cass/INTTRA Ocean Freight Index report explained the phenomenon.
What happened is this: The volume of US exports shipped by container carrier in July plunged 5.8% from an already dismal level in June, and by 29% from July a year ago. The index is barely above fiasco-month March, which had been the lowest in the history of the index going back to the Financial Crisis.
The index tracks export activity in terms of the numbers of containers shipped from the US. It doesn’t include commodities such as petroleum products that are shipped by specialized carriers. It doesn’t include exports shipped by rail, truck, or pipeline to Mexico and Canada. And it doesn’t include air freight, a tiny percentage of total freight. But it’s a measure of export activity of manufactured and agricultural products shipped by container carrier.
Overall exports have been weak. But the surge in exports of petroleum products and some agricultural products have obscured the collapse in exports of manufactured goods. For now, the currency war waged by all the other major economies catches much of the blame:

This post was published at Wolf Street by Wolf Richter ‘ August 13, 2015.

AMZN: The World’s Greatest Ponzi Show – Find Out Why

Dave was brilliant in his 25 page Amazon.dot.con report detailing the financial manipulation at the hand of Jeff Bezos. His investigative mind and tenacity in digging further for the truth has exposed Amazon’s/Jeff Bezos’ fraudulent activities to the public. Dave has a unique way of explaining every aspect of each graph, photo and financial statement throughout his report that anyone without the experience in the field can comprehend. – ‘Kim’ in Connecticut
AMAZON dot CON – the price is going up after tomorrow.
The Wall Street Journal in an article on AMZN’s ‘transparency’ reports that, ‘In the case of Amazon, the company finally broke out details showing that its AWS business is now generating about $6 billion a year in revenue with operating margins of 21% – far above the 5% margin seen in its North American retail business.
Yet AWS is still projected to account for less than 10% of Amazon’s total revenue this year and next. Amazon, meanwhile, now trades at more than 150 times forward earnings. Here’s the link: WSJ
Of course, I would never expect a financial media journalist to understand accounting and finance. Why should they? Their job is to regurgitate the pig vomit served up to them by the Wall Street firms that buy expensive advertising in their publications.

This post was published at Investment Research Dynamics on August 14, 2015.

Greek Parliament In Eleventh Hour Discussions On Bailout- Live Feed

Greek lawmakers are now set to vote on the final draft of the country’s third bailout program. If the proposal doesn’t clear parliament, eurozone finance ministers will likely delay implementation of the ESM program, setting up the possibility that Athens will be forced to tap the remaining funds in the EFSM for a bridge loan in order to make a 3.2 billion payment to the ECB next week.
More from Bloomberg:
Greece will be forced to accept a bridge loan if lawmakers don’t approve the country’s bailout before a meeting of euro-area finance ministers later Friday, Finance Minister Euclid Tsakalotos says in parliament.
Euro-area finance ministers late won’t sign off on plan if it hasn’t yet been passed through Greek parliament.
As a reminder, the MOU includes around 40 new laws, including what Kathimerini describes as “a barrage of new taxes.” Here’s a rundown:

This post was published at Zero Hedge on 08/13/2015.

13/8/15: Eurocoin: Marginal Strengthening of Euro Area Growth in July

Earlier this week I covered Ifo Institute Index of Economic Conditions for the Euro Area. This time around, lets take a look at the leading growth indicator, Eurocoin published by CEPR and Banca D’Italia.
July 2015 reading for Eurocoin stood at 0.41, up on 0.39 in June and well ahead of 0.27 reading recorded in July 2014. This means that economic growth slightly firmed up at the start of Q3 2015 compared to the end of Q2 2015.

This post was published at True Economics on August 13, 2015.

The Difference Between Yuan and Renminbi

Chinese currency has two names: the renminbi (RMB) and the yuan. The two are oft confused and used interchangeably.
This misunderstanding has amped up as of late…
You see, unprecedented action from China’s central bank this week caused the biggest drop in Chinese currency in decades – and counting. (The central bank set the country’s official exchange rate to the U. S. dollar lower by 1.1% Thursday, bringing the total devaluation since Tuesday to 4.4%. Further decline is likely in store.)
China’s currency move is all over financial news and noticeably sparked disparate ‘renminbi vs. yuan’ use in headlines. Take a look:
Renminbi…
‘Markets Rocked as China’s Renminbi Tumbles to Four-Year Low,’ The Telegraph ‘Renminbi Devaluation Tests China’s Commitment to Free Markets,’Financial Times Versus yuan…

This post was published at Wall Street Examiner by Tara Clarke ‘ August 13, 2015.

Goldman Is Officially A Bank: Bailed Out Hedge Fund Will Allow Muppets To Give Their Savings To Lloyd Blankfein

The last time former Goldman employee and then Treasury Secretary Hank Paulson bailed out the hedge fund known as Goldman Sachs, and its closest peers (but not its biggest fixed income competitor Lehman Brothers of course), even the traditionally confused American public pushed back on the structure of the bailout which converted the Goldman holding company into an FDIC-insured company, which led many to ask: just where are Goldman’s deposits?
The answer, of course, was nowhere, so perhaps in anticipation of the logical pushback against its second, upcoming bailout which would see the taxpayer-backed depositor insurance company once again provide trillions in cash to banks as well as the glorified hedge funds such as Goldman, the firm moments ago decided to do something it has never done before: become an actual bank with checking accounts and such.
It did so by announcing moments ago it would acquire GE’s Capital Bank’s online deposit platform, as in online checking accounts, including $8 billion in deposits and $8 billion in brokered CDs, thereby providing Goldman with a virtually costless source of $16 billion in funds. Costless, because under ZIRP, Goldman pays precisely zero interest for the unsecured liability also known as a deposit.
from the PR:

This post was published at Zero Hedge on 08/13/2015.

Gold Daily and Silver Weekly Charts – And Quiet Flows the Paper

Gold and silver took a break from the last few days, as the yellow dawg and silver rocket slumped a little on the porch after chasing the volatility of the markets around the barn.
That disruption was caused by the China currency devaluations, which reminded those who have not been paying attention that a) there is a currency war underway, b) there is no sustainable economic recovery despite rosy reassurances, and c) there are a number of bubbles in financial assets that appear to be wobbly.
The Bucket Shop was its usual quiet self yesterday as there were no deliveries to speak of, and no observable action in the warehouses.
Let’s see how the metals can go out for the week in tomorrow’s trade. Recall that these macro changes tend to happen slowly, and as far as reform of the markets is concerned, there has been very little if any.

This post was published at Jesses Crossroads Cafe on 13 AUGUST 2015.

AUGUST 13/TODAY MARKED THE 3RD DAY IN A ROW FOR A CHINESE YUAN DEVALUATION/FUTURES ARE INDICATING ANOTHER 1% DROP/ HUGE 1.241 MILLION OZ OF SILVER LEAVE THE SLV/WE STILL HAVE CLOSE TO 20 TONNES O…

Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1115.70 down $7.50 (comex closing time)
Silver $15.39 down 8 cents.
In the access market 5:15 pm
Gold $1115.00
Silver: $15.43
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a poor delivery day, registering 1 notice for 100 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 230.85 tonnes for a loss of 72 tonnes over that period.
In silver, the open interest fell by 3037 contracts despite the fact that silver was up in price 18 cents yesterday. The total silver OI continues to remain extremely high, with today’s reading at 174,865 contracts In ounces, the OI is represented by .874 billion oz or 124% 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.
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rests tonight at 435,603. We had 1 notice filed for 100 oz today.
We had no changes at the GLD today / thus the inventory rests tonight at 671.87 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 a big withdrawal in silver inventory at the SLV to the tune of 1.241 million oz, / Inventory rests at 324.968 million oz.
We have a few important stories to bring to your attention today…

This post was published at Harvey Organ Blog by harveyorgan August 13, 2015.

Don’t Look Now, But The Subprime Auto Bubble May Be Bursting

Well, it’s official: the cat is out of the bag on what’s “driving” (no pun intended) record US auto sales.
Anyone who frequents these pages is by now well-versed in the idea of “originate to sell.” It’s the dynamic that helped create the housing bubble and it’s now in full effect in the auto loan space.
The concept is simple. When demand is strong for paper backed by a particular type of asset, Wall Street obliges by cranking up the securitization machine. Thanks in part to the Fed-induced hunt for yield demand for auto loan-backed ABS has been strong. Supply should come in at around $125 billion this year – that’s up 25% from 2014 and accounts for more than half of total consumer loan-backed issuance. Here are the latest projections from BofAML:

This post was published at Zero Hedge on 08/13/2015.

Commodity Prices: Predicting a Substantial Stock Crash

I recently explained that it’s one thing for a central bank to artificially prop up its own stock market. It’s another thing entirely to even imagine doing something similar to falling oil prices. What’ll they do – buy oil futures? Give me a break.
Oil hit a six-year low this week. As I write this, it’s around $43, closer yet to the $42 target I forecast when oil bounced back to $63. After another tepid bounce, it will very likely fall to the $32 support level we saw in late 2008. John Kilduff, a leading oil analyst who will be speaking at our Irrational Economic Summit in Vancouver next month, sees this happening earlier than his original Christmas call.
But oil just got another kick in the shins this week when China decided to return to its old tricks again.
The People’s Bank of China’s move to intentionally lowered its currency – to fight the slowdown made all too obvious by an 8.5% decline in exports – is fundamentally no different than injecting $0.5 trillion into its stock market’s bloodstream or buying empty condos to keep its real estate from tanking. It’s one economic manipulation after the other!
This raised concern over China’s demand for commodities. A weaker yuan probably means fewer imports, and so less demand. As a result, oil and other commodity prices slumped.

This post was published at Wall Street Examiner by Harry Dent – August 13, 2015.

The College Bubble 2.0

On Monday, we got some color on Hillary Clinton’s $350 billion plan to make college more affordable. As we recently noted, students and former students across the country owe more than $1.2 trillion in college loans – doled out by our government in the name of helping high school graduates further their education, and as Bill Ackman so eloquently put it earlier this year, “there’s no way they’re going to pay it back.” But at this point, extra funding is backfiring. Half of young graduates are either unemployed or only working part-time, which is a startling sign that the jig is up. In conjunction with the poor economy, new technology, developing markets killing jobs, and the massive increase in applicants with degrees, the value of college degrees is drastically falling in the economy of today. College is in a bubble, and it is going to pop soon…
The following video should open a few more eyes to the startling crisis facing today’s young adults and the American higher education system…

This post was published at Zero Hedge on 08/13/2015.

Is The Currency War Over? China Revalues Yuan 0.05% Stronger

Heading into the China session, offshore Yuan signaled a 1% devaluation was on the cards. Of course, all media eyes were focused on the disaster in Tianjin but after 3 days of what was supposed to a ‘one-off’ adjustment, The PBOC has in fact surprised with a modestly stronger fix at 6.3975 from yesterday’s 6.4010 Fix. That leaves the CNY Fix devaluation to a 4.60% loss in 4 day. Of course, its a bit hypocritical of Americans or Europeans to regard the Chinese as mean and nasty and currency warriors because they’re letting their currency adjust against a constantly-devaluing dollar and euro. The US has been devaluing the dollar for years, but that’s a-ok for Wesrern commentators, apparently. It appears – judging by the opening devaluation and closing intervention – that China is as set on crushing the herd of one-way carry traders as any export-enhancing currency debasement.
*CHINA SETS YUAN REFERENCE RATE AT 6.3975 AGAINST U. S. DOLLAR *PBOC YUAN REFERENCE RATE STRENGTHENS 0.05%

This post was published at Zero Hedge on 08/13/2015.

Fed: Q3 GDP Forecast Slumps To 0.7 Percent Growth (Will The Fed STILL Raise Rates??)

Well, ain’t this a kick in the head! The Atlanta Fed forecasts only 0.7% growth in Q3.
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2015 was 0.7 percent on August 13, down from 0.9 percent on August 6. The previously reported nowcast of 1.0 percent for August 6 was revised down due to a minor adjustment in the method for nowcasting investment in computers and peripherals. Since a week ago, the nowcast for the contribution of inventory investment to third-quarter real GDP growth has declined from -1.8 percentage points to -2.2 percentage points. This decline more than offset an increase in the nowcast of the third-quarter growth rate in real consumer spending from 2.9 percent to 3.1 percent after the release of this morning’s retail sales report from the U. S. Census Bureau.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ August 13, 2015.

What The 7 Year Cycle Suggests For Gold And Stocks

Everything in life moves in cycles. Seconds, minutes, hours, days, all add up to become part of a cycle. Some cycles, such as the beating of the heart move fast, while a millennium moves very slow. This article will draw your attention to a very important7 year cycle. (Charts courtesy Stockcharts.com unless indicated).
The number 7 is much more prevalent in nature than most of us realize: There are 7 oceans, 7 continents, 7 vertebrae in the neck,
7 layers of skin (2 outer and 5 inner), ocean waves roll in sevens, the rainbow has 7 colors, sound has 7 notes, there are 7 directions, The Jewish Menorah has 7 candles, there are 7 holes in your head (go ahead and count them), the earth was created in 7 days (including a day of rest), a cube has 7 dimensions (including the inside), the male body has 7 parts, the number 7 is used 735 times in the Bible.
Seven is the number of completeness and perfection (both physical and spiritual). It derives much of its meaning from being tied directly to God’s creation of all things. According to Jewish tradition, the creation of Adam occurred on October 7th, 3761 B. C. (or the first day of Tishri, which is the seventh month on the Hebrew calendar). The word ‘created’ is used 7 times describing God’s creative work (Genesis 1:1, 21, 27 three times; 2:3; 2:4). There are 7 days in a week and the Sabbath is on the 7th day. There are 7 deadly sins, 7 virtues, 7 gifts of the Holy Spirit, 7 classical planets, 7 numbers in a N/A phone number (after the area code), 7 hills in Istanbul, Rome and Jerusalem, 7 liberal arts, 7 wonders of the ancient world, 7 is the number of games in the playoffs for NHL, MLB and NBA. The number 7 is also important in Hinduism, Islam and Judaism.
There is an obvious 7 year cycle in economics.
Reaching back to forty nine years ago (7 x 7), in 1966 the USA experienced a ‘credit crunch’. In August of that year the US bond market suffered a serious ‘liquidity crisis’.
Seven years later in 1973, the world experienced an ‘oil embargo’ followed by a dramatic rise in the price of oil. There were long lines of cars at gas stations.
Move forward by 7 years and in 1980 Wall Street avoided the collapse of some of its banks and brokerage houses by forcing the Hunt Brothers to stop accumulating silver. The brokerages were shorting silver in the futures markets, where the Hunt Brothers were buying contracts and taking delivery. FED Chairman Paul Volcker allowed the COMEX to adopt a change in trading rules over a weekend. This change in rules forced the Hunts to come up with hundreds of millions of dollars in margin money with no advance warning. Silver peaked at 49.00 and gold topped out at $875.00, while interest rates peaked at 22%.
Another seven years passed and in the fall of 1987 stock markets crashed around the world. ‘Black Monday’ of October 1987 saw the Dow lose 22% in one day.

This post was published at GoldSilverWorlds on August 13, 2015.

3 Things: Freight, Deflation, No Hike

Freight Volumes Suggest Weak Growth
We often look at broad measures of the economy to determine its current state. However, we can often receive clues about where the economy may be headed by looking at data that feeds into the broader measures. Exports, imports, wage growth, commodity prices, etc. all have very important ties to the health of the consumer which is critical to an economy that is nearly 70% driven by their consumption.
While I have discussed the importance those issue in the past, there are other indicators that can also provide valuable clues. One such example is the Cass Freight Index. From the Cass website:
“Data within the Index includes all domestic freight modes and is derived from $26 billion in freight transactions processed by Cass annually on behalf of its client base of hundreds of large shippers. These companies represent a broad sampling of industries including consumer packaged goods, food, automotive, chemical, OEM, retail and heavy equipment. Annual freight volume per organization ranges from $1 million to over $1 billion. The diversity of shippers and aggregate volume provide a statistically valid representation of North American shipping activity.“
The chart below is the annual change in both the shipments and expenditures on freight shipments since 1999.

This post was published at StreetTalkLive on 12 August 2015.

Peter Schiff Says Impending U.S. Dollar Collapse should be Getting Attention, not China’s Devaluation

Peter Schiff, CEO of Euro Pacific Capital and bestselling author of ‘Crash Proof,’ believes the impending collapse of the United States dollar should be getting the attention of investors and news outlets and not the devaluation of the Chinese yuan.
Speaking in an interview with Newsmax TVon Tuesday, Schiff explained that the U. S. economy has an abundance of problems but China’s monetary policy (SEE: Donald Trump on China’s Devaluation: ‘They’re just destroying us’) isn’t one of them. The contrarian investor stated that China’s economy isn’t experiencing a freefall and the current devaluation is minuscule. He noted that the yuan’s value has substantially increased over the past several years compared to the U. S. dollar.
‘So this move was motivated not by the exchange rate between the yuan and the dollar, but between the yuan and all the other currencies because the dollars is in a bubble right now,’ he said. ‘The dollar is very overvalued … and the dollar is a bubble. This dollar bubble is going to burst.’

This post was published at Lew Rockwell on August 13, 2015.