The Economic Collapse Approaches, The Market Doomsday Clock Is One Minute To Midnight – Episode 743a

The following video was published by X22Report on Aug 17, 2015
Greece faces snap elections and government abandons Tspiras. Mass layoffs in the US continues. Factory orders in NY shrink and reach 2009 recession levels, signalling we are headed into a collapse. Home-builder confidence improves as lumber demand/prices fall and mortgage demand is at its lowest point. Retail collapses as profits in major retailers decline. The Telegraph believes the market doomsday clock it one minute from midnight, the economic collapse has arrived.

“Avoid ALL Contact” With Rain, American Embassy In Beijing Warns

First in “China Sends In Chemical Warfare Troops, Orders Tianjin Blast Site Evacuation After Toxic Sodium Cyanide Found” and subsequently in “Poison Rain Feared In Tianjin As Death Toll Rumored At 1,400“, we documented China’s frantic attempts to reassure an increasingly agitated and frightened public that the air and water are safe after last Wednesday’s deadly chemical explosion at Tianjin.
Although the full environmental implications of the blast likely won’t be known for quite some time, the immediate concern is that rain could react with water soluble sodium cyanide, transforming the chemical into potentially fatal hydrogen cyanide gas.
And while Beijing has already begun the censorship (some 400 Weibo and WeChat accounts have reportedly been shut down), the American Embassy isn’t mincing words.
The following unconfirmed text message is said to have originated at the Embassy:

This post was published at Zero Hedge on 08/17/2015.

Another Monday, Another Batch Of Brutal Numbers

The global recovery meme got another series of jolts this morning, as pretty much everything suprised on the downside. In no particular order:
Japan economy shrinks in second quarter in setback for ‘Abenomics’
China’s economic slowdown and its impact on its Asian neighbors has also heightened the chance that any rebound in growth in July-September will be modest, analysts say.
The gloomy data adds to signs that Japan’s economy is at a standstill and heightens pressure on policymakers to offer additional monetary or fiscal stimulus later this year.
Private consumption, which makes up roughly 60 percent of economic activity, fell 0.8 percent from the previous quarter, double the pace expected by analysts.
The data looks likely to force the BOJ to cut its forecast of a 1.5 percent economic expansion for the current fiscal year when it reviews its long-term projections in October.
But the weak consumption underscores a dilemma the central bank faces that may discourage it to expand stimulus.
Economics Minister Akira Amari acknowledged that consumption may have been hit by rising food prices, as the BOJ’s easing weakened the yen and pushed up import costs.
Aides close to Abe have signaled that additional monetary easing is unwelcome as further yen falls will push up food costs further and hurt consumption.

This post was published at DollarCollapse on August 17, 2015.

Junk-Rated Offshore Drillers Headed into Bankruptcy: Fitch

After fracking, offshore drilling.
At the leading edge is rig-contractor Hercules Offshore. In March 2014, before theOIL PRICE collapsed, it had the temerity to sell for 100 cents on the dollar $300 million in junk bonds. Since then, its shares have collapsed to near zero. Its bonds have collapsed too. And on Thursday last week, it and a whole gaggle of related companies filed for Chapter 11 bankruptcy.
It won’t be the only junk-rated offshore driller with that fate, according to Fitch Ratings. Investors are going to get their pockets cleaned.
‘This is the lowest level of demand we have seen since the early days of the offshore industry,’ Hercules CEO John Rynd had told investors in a quarterly conference call on April 29. Hercules had already cut its global workforce – about 1,800 employees at the end of 2014 – by nearly 40%, he said.
Offshore drillers have been buffeted from two directions: the collapse of drilling activity and the collapse in the daily rates they can charge for their offshore drilling rigs. So fewer rigs, and less money for each of the fewer rigs: Hercules’ revenues in the second quarter plunged 67% from a year ago!
And junk-rated companies like Hercules that need new money to stay afloat and service their debts are finding out that their burned investors have shut off the spigot.
‘A leading indicator of further bankruptcies among other challenged high yield (HY) offshore drillers,’ is what Fitch Ratings calls Hercules.
In the prepackaged bankruptcy, Hercules swaps four senior bond issues totaling $1.2 billion for 96.9% of the company’s equity. So how do these bondholders fare?

This post was published at Wolf Street by Wolf Richter ‘ August 17, 2015.

Fed Goes Looking For Evidence Of Broken Treasury Market, Decides Everything Is Fine

One doesn’t have to look very far to find evidence that the Fed’s monumental attempt to corner the Treasury market is producing all manner of distortions and anomalies.
For example, one could point to episodic instances of acute collateral shortages manifested by “immensely” special repo rates. If that’s too esoteric for you, just go and have a look at a 10Y chart from October 15 of last year and ask yourself what happened there. Put simply, when someone comes along and does a multi-trillion dollar bellyflop into any market – even one that could previously be described as the deepest and most liquid on the planet – there are bound to be far-reaching repercussions for market function and that’s precisely what’s happening, and not only in USTs but in JGBs and most recently in German bunds.
Apparently someone at the NY Fed decided that with everyone in the financial universe suddenly screaming about liquidity (or a lack thereof) it was time to take a cursory look at the issue and make a half-hearted, slightly disingenuous attempt to find out if there’s really a problem.
So that’s exactly what Tobias Adrian, Michael Fleming, Daniel Stackman, and Erik Vogt did. There results are posted on the NY Fed’s blog and we present some of the highlights below.

This post was published at Zero Hedge on 08/17/2015.

Will the Fed Hesitate? ‘Everything is Too Vulnerable’ for Rate Change, Says Ron Paul

The system is teetering on edge, and nearly everyone in the financial sector is waiting for one decision – will the Fed finally raise rates?
Ron Paul has made a bold prediction that the Federal Reserve likely will NOT raise interest rates, something which would have enormous consequences in the market, because it is hesitant to do so with so many negative risk factors the market already faces.
Fed Chair Janet Yellen – and most in the financial sector – know how much is impinging upon the possible decision to raise rates after years and years of quantitative easing have pushed the limits of stimulating the economy. According toCNBC:
By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U. S. economy back into recession, or worse… The Fed chief ‘does not want to be responsible for the depression that I think we’ve been in the midst of all along,’ Paul added. ‘Everything is vulnerable, so we’re living in very dangerous times,’ Paul added.
The banks have basically become junkies to constant cheap money, and QE3 has gone so far over the edge and upside down that pensions, insurance policies and savers can no longer earn future value through basic investment.

This post was published at shtfplan on August 17th, 2015.

Currency Carnage: Gross Warns On “Fakers And Breakers”, Morgan Stanley Tells Asia To Watch Its REER

While assessing Malaysia’s simultaneous FX, stock, and bond market meltdown on Friday we described the situation facing emerging market currencies as follows:
When China went the ‘nuclear’ (to quote SocGen) devaluation route in a last ditch effort to rescue its export-driven economy from the perils of an increasingly painful dollar peg, everyone knew things were about to get a whole lot worse for an EM currency basket that was already reeling from plunging commodity prices, slumping Chinese demand, and the threat of an imminent Fed hike. Indeed, moves like that seen in the ringgit (which has suffered its worst two-day decline against the dollar since 1998) have some commentators suggesting that an Asian Financial Crisis redux is now in the cards.
And while Asia ex-Japan currencies may face the most immediate risk, the pain from Beijing’s entry into the global currency wars will be felt acutely in LatAm as well. Take Chile and Colombia for instance where, as we detailed earlier this month, the pesos (respectively) have been under tremendous pressure over the course of the past year.
And of course there’s Brazil, where all roads lead to further devaluation as the government grapples with the worst stagflation in a decade as well as current account and budget deficits.
So where, one might ask, does that leave emerging markets? In other words, we’ve felt the initial shockwaves of China’s entrance into the global currency wars, now what can we expect going forward?
Nothing good for Asian currencies, Morgan Stanley says. Here’s more from the bank’s global currency research team on which countries have the most to lose.

This post was published at Zero Hedge on 08/17/2015.

The Americanization Of Australia: Housing Bubble, Central Bank Panic, Low Wage Growth

G’day mate!
China’s exports plummeted by 8.3% in a recent report, fueling speculation of more easing from China. This is a continuation of a long-term trend from 2010.

Since Australia is dependent on exports to China (primarily of raw materials like iron ore), a downturn in China is going to be painful … for Australia.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ August 17, 2015.

AUGUST 17 B /THE UPCOMING DEFLATION CAUSED BY CHINA’S DEVALUATION OF THE YUAN/CHINESE DEMAND (CITIZEN DEMAND) FOR GOLD IN LATEST WEEKLY REPORTING: 56 TONNES/HUGE COLLAPSE IN NY MANUFACTURING (EMP…

Good evening Ladies and Gentlemen:
Here are the following closes for gold and SILVER TODAY:
Gold: $1118.60 up $5.70 (comex closing time)
Silver $15.30 up 9 cents.
In the access market 5:15 pm
Gold $1117.30
Silver: $15.34
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a poor delivery day, registering 0 notice for nil 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 227.62 tonnes for a loss of 75 tonnes over that period.
In silver, the open interest fell by 364 contracts as silver was down in price by 18 cents on Friday. The total silver OI continues to remain extremely high, with today’s reading at 174,507 contracts In ounces, the OI is represented by .872 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 431,081. We had 0 notices filed for nil 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 no changes in silver inventory at the SLV tune of / 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 on August 17, 2015.

Crude Oil Pump’n’Dump Ends At Lowest Close Since March 2009

For the first time since March 2009, WTI Crude closed with a $41 handle. After an all-day levitation (along with stocks), it appears the world and their pet rabbit is now aware of the pre-NYMEX close ramp and thus outspoofed themselves and so WTI fell through a bidless vacuum to the lows of the day…
Low volume steps up.. and high volume elevator down..

This post was published at Zero Hedge on 08/17/2015.

CORPORATE DEBT – ROAD TO OBLIVION IN A BEAR MARKET

Any article that starts with a quote from Jim Grant is guaranteed to be a fact based, common sense, reasoned analysis of our warped, debt saturated, over-valued, Federal Reserve rigged financial markets. John Hussman starts his weekly letter with this quote from Jim Grant:
‘The way to wealth in a bull market is debt. The way to oblivion in a bear market is also debt, and nobody rings a bell.’ – James Grant
We’ve been in a Fed QE and ZIRP induced six year bull market that has been sputtering since QE 3 ended in October 2014. Leveraging yourself to the hilt and piling intoTHE STOCK MARKET has been the road to riches for six years, just as leveraging to the hilt in real estate was the road to riches from 2002 through 2007, and leveraging to the hilt in internet stocks was the road to riches from 1998 through 2000. Of course, the dot.com and housing road to riches detoured into ditches that wiped out trillions of phantom wealth, just as the current road is leading to a grand canyon size ditch.
Total credit market debt has reached all-time highs. The de-leveraging of consumers, liquidation of insolvent Wall Street banks, and bankruptcies of zombie retailers, real estate developers, and mall owners was postponed by Federal Reserve intervention, changing accounting rules to hide bad debt, political shenanigans, and taxpayers paying for the extreme risk taking by bankers and corporate CEOs. Total credit market debt sits at $59 trillion, up from $52 trillion in 2009 at the depths of the recession. This increase has been entirely driven by a $5.3 trillion increase in government debt and a $1.6 trillion increase in corporate debt. The propaganda about corporations flush with cash is bold faced lie. Corporations have increased their debt load by 25% since 2009.
As Dr. Hussman points out, the Fed has encouraged this behavior by the biggest corporations on the planet with their suppression of market interest rates and their gift of $3 trillion to the Wall Street banks. Corporate CEOs are supposed to be the smartest guys in the room, but they haven’t been able to grow their businesses through innovation, creativity, new products, or new investments in plant and equipment. Their entire playbook consists of outsourcing jobs to foreign countries, keeping wages below the level of inflation, and borrowing cheaply from Wall Street banks to buyback their stock and boost earnings per share, so their stock price will go higher, enriching themselves.

This post was published at The Burning Platform on 17th August.

IRS Admits Taxpayer Account Hack Far More Serious Than Initially Reported

Another day, another lie/fib/untruth exposed in government. As WSJ reports, after initially admitting that a major security breach had gained unauthorized access to 100,000 US households tax returns, The IRS has now admitted that in fact more than 600,000 breaches (blamed on Russians) were attempted and anadditional 390,000 taxpayers were potentially affected.
As The Wall Street Journal reports,

This post was published at Zero Hedge on 08/17/2015.

Gold Daily and Silver Weekly Charts – Dog Days of Summer

Today was very quiet in the US markets. Even the weather seemed to conspire in it, quietly baking metropolis in a still Summer heat.
Gold and silver popped early on the weaker than expected Empire report, and then drifted lower on the general lack of interest in The Bucket Shop by all except a small group of professional sharpers, shills, and hapless tourists.
Even the dollar moved sideways. All is calm in the Pax Americana.
Change very difficult for people to accept sometimes, especially when they have worked long and hard to set things up for their own advantage, and they think they are winning.
How sad but almost funny it is, that they are so busy winning, that they have forgotten the rules, much less the stakes, of the real game which we are all playing.
Change is coming. Slowly but surely. Change is the only certainty.
And the only real tragedy, in the end, is not to be a saint.

This post was published at Jesses Crossroads Cafe on 17 AUGUST 2015.

17/8/15: Euro: The Land Where Growth Goes to Die

So we have had a massive QE – even prior the current one – by the ECB. And we are having a massive QE again, courtesy again, of the ECB. And the bond markets are running out of paper to shove into the… you’ve guessed it… the ECB. And the banks have been repaired. And we are being fed our daily soup of alphabet permutations (under the disguise of the European Union ‘reforms’ and policy initiatives): ESM, EFSF, EFS, OMT, EBU, CMU, GMU, TSCG, LTRO, TLTRO, MRO, you can keep going… And what we have to show for all of this?
2Q 2015 growth is at 0.3% q/q having previously posted 0.4% growth in both 4Q 2014 and 1Q 2015. This is, supposedly, the fabled ‘accelerating recovery’.

This post was published at True Economics on August 17, 2015.