AsiaPac Stocks, FX Tumble As China Devalues Yuan Most In 4 Weeks, Sees “No Need For Massive Economic Stimulus”

Losses from the US session extended following comments in one of the government’s official mouthpieces that “China doesn’t need massive stimulus.” A BoNZ rate cut (blaming China’s devaluation) sent Kiwi tumbling, Ringgit hit a fresh 17 year low against the USD, Japanese stocks collapsed over 650 points so far, and Chinese stocks are opening notably lower. Volume remains de minimus (99% below average) in Chinese futures trading as China devalues the Yuan by the most since Aug 13 and injects another 80 billion Yuan liquidity.
US weakness did not help but once this hit early on in the Asia session…
The Bank of New Zealand cut rates:

This post was published at Zero Hedge on 09/09/2015.


It’s a long way down folks. S&P 500 earnings are already down 12% from their all-time highs. They reached these heights due to the Federal Reserve ZIRP and QE, along with the pocket protector wearing accountants at the FASB knuckling under to Bernanke and Geithner and allowing the Wall Street banks to report fake profits. Reversing hundreds of billions in loan loss reserves booked in 2009 while ‘earning’ billions from parking money at the Fed has allowed Wall Street banks to report $700 billion of fake profits since 2010.
The massive corporations that make up the S&P 500 have generated increasing profits by refinancing their debt at the artificially lowered rates from the Fed, raising prices, moving jobs to foreign countries, and giving their workers 2% raises. Revenue growth among the S&P 500 has been non-existent. The game is up.

This post was published at The Burning Platform on 9th September 2015.

In Ironic Twist, Stock Crash Leads To First CNBC Ratings Increase In Years

If CNBC’s intention when moving its Squawk Box crew from Englewood Cliffs in NJ to the Rock Center in Manhattan, not to mention hiring Andrew Ross Sorkin four years years ago (there has been a 23% decline in total viewership since then) was to boost the popularity of the sagging flagship program which is celebrating its 20th anniversary this year, it failed.
Yet where CNBC won, is in the irony department, because while its ratings had sunk so law at the end of 2014 that – as we first reported – CNBC was forced to ask Nielsen to “stop” counting its viewers, in the past several month Squawk Box’s viewership had experienced a renaissance of sorts. Why? For the same reason CNBC’s viewers had all but disappeared: the recent surge in volatility as a result of the first market correction since 2011, following the most artificial, laughable and central-bank orceshtrated rally in history.
Ironic, because it is precisely CNBC’s constant cheerleading of what little viewers it had left that pushed the market to such nosebleed levels that on August 24 it suffered its second flash crash in just five years.
It is even more ironic, because instead of a rational, objective coverage of the newsflow, the constant stream of cherry-picked, “double-seasonally adjusted” good news is precisely why viewers had left the Comcast cable station in droves, realizing the disconnect between the economy and stocks is simply too ridiculous to stomach, and that they are being lied to with every instance of the “BTFD” dogma.

This post was published at Zero Hedge on 09/09/2015.

Brazil Cut To Junk By S&P, ETF Falls 5% Post-Mkt

It’s not as if the writing wasn’t on the wall, and don’t say we didn’t warn you.
Brazil, whose economy officially slid into recession in Q2 – a quarter during which Brazilians suffered through the worst inflation-growth outcome (i.e. stagflation) in over a decade – and whose efforts to plug a yawning budget gap are complicated by political infighting and a growing public outcry against embattled President Dilma Rousseff, has been cut to junk by S&P.

This post was published at Zero Hedge on 09/09/2015.

Economy In Pictures: Is It Strong Enough?

I have written extensively about the data behind the headline media reports. I have also discussed the importance of the relationship between the underlying data trends relative to broader macroeconomic perspectives. However, it is sometimes helpful just to view the various economic indicators and draw your own conclusions outside of someone else’s opinion.
With the economy now more than 6-years into an expansion, which is long by historical standards, the question for you to answer by looking at the charts below is:
“Are we closer to an economic recession or a continued expansion?”

This post was published at StreetTalkLive on 09 September 2015.

China’s Record Month

China’s actions to stabilizing its currency have hit their reserves to the tune of $93.9 billion in August alone! The pressure from the August 11th devaluation has resulted in the first official reserve reduction in China since it joined the World Trade Organization in 2001.

This post was published at Wolf Street on September 9, 2015.


Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1102.40 down $18.20 (comex closing time)
Silver $14.57 down 18 cents.
In the access market 5:15 pm
Gold $1106.50
Silver: $14.65
First, here is an outline of what will be discussed tonight:
At the gold comex today we had a poor delivery day, registering 4 notices for 400 ounces Silver saw 3 notices for 15,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 219.98 tonnes for a loss of 83 tonnes over that period.
In silver, the open interest fell by 1891 contracts despite the fact that silver was up in price by 21 cents yesterday. Again, our banker friends used the opportunity to cover as many silver shorts as they could but failed. The total silver OI now rests at 155,615 contracts In ounces, the OI is still represented by .778 billion oz or 111% of annual global silver production (ex Russia ex China).
In silver we had 3 notices served upon for 15,000 oz.
In gold, the total comex gold OI surprisingly rose to 421,732 for a gain of 2,730 contracts. We had 4 notices filed for 400 oz today.
We had no changes in tonnage at the GLD today/ thus the inventory rests tonight at 682.59 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. It sure looks like 670 tonnes will be the rock bottom inventory in GLD gold. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold will be the FRBNY and the comex. In silver, we had a big withdrawal in silver inventory at the SLV to the tune of 1.336 million oz/Inventory rests at 322.06 million oz.
We have a few important stories to bring to your attention today…

This post was published at Harvey Organ Blog on September 9, 2015.

This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like

There is so much confusion out there. On the days when the Dow goes down by several hundred points, lots of people pat me on the back and tell me that I ‘nailed’ my call for the second half of this year. But on the days when the Dow goes up by several hundred points, I get lots of people contacting me and telling me that they are confused because they thought the stock market was supposed to go down. Well, the truth is that if there is going to be a full-blown market meltdown, we would expect for there to be wildly dramatic swings in the market both up and down. A perfect example of this is what we experienced during the financial crisis of 2008. 9 of the 20 largest single day declines in stock market history happened that year, but 9 of the 20 largest single day increases in stock market history also happened that year. If we are moving into another great financial crisis, there should be massive ups and massive downs, and that is precisely what we are witnessing right now.
On Tuesday, the Dow surged several hundred points. There was much celebrating in the mainstream media over this, but what they failed to realize was that this was another big red flag. And we saw this volatility carry over into Wednesday. The Dow was up 171 points early in the day before ending down 239 points.
By themselves, those two days don’t mean a whole lot. The key is to look at them in context. And in context, we have already witnessed the most dramatic stock market crash since the last financial crisis.
There will be more days when the stock market absolutely plummets and there will be more days when it absolutely soars. No stock market crash in U. S. history has ever gone in just one direction continually. There are always giant waves of momentum that cause panic selling and panic buying.
There is one thing that could change that. A major ‘black swan event’ such as a historic natural disaster, an unprecedented terror attack, or the outbreak of war could potentially be enough to chase all of the buyers out of the marketplace. And considering the times that we are moving into, those things should not be ruled out.
But minus some type of event like that, we should expect lots of wild swings in both directions.

This post was published at The Economic Collapse Blog on September 9th, 2015.

Krugman Joins Goldman, Summers, World Bank, IMF, & China: Demands No Fed Rate Hike

The growing roar of ‘the establishment’ crying for help from The Fed should make investors nervous. While your friendly local asset-getherer and TV-talking-head will proclaim how a rate-hike is so positive for the economy and stocks, we wonder why it is that The IMF, The World Bank, Larry Summers (twice), Goldman Sachs, China (twice), and now no lessor nobel-winner than Paul Krugman has demanded that The Fed not hike rates for fear of – generally speaking – “panic and turmoil,” however, as Krugman notes, ‘I think it would be a terrible mistake to move. But I’m not confident that they won’t make a mistake.”
The IMF panics…

This post was published at Zero Hedge on 09/09/2015.

Nanosilver and Nanopaper Team Up to Produce Low-Cost Sensors

Nanotechnology has come to paper. Although the special paper is made from cellulose, like regular paper, the cellulose fibers are on a nanoscale, which gives it lower surface roughness and much higher transparency than traditional paper.
Several applications are being investigated for nanopaper, including their use as filters, wound dressings, sponges that soak up oil pollution, and now as a range of low-cost sensors, thanks to nanosilver particles imbedded in the paper.
‘To date, bacterial nanopaper has been scarcely explored for optical (bio)sensing applications,’ said Arben Merkoi, ICREA Research Professor and director of the Nanobioelectronics & Biosensors Group at Institut Catal de Nanociencia i Nanotecnologia in Barcelona, Spain.

This post was published at GoldSilverWorlds on September 9, 2015.

Gold Daily and Silver Weekly Charts – When the Unsustainable No Longer Sustains

‘Crime, once exposed, has no refuge but in audacity.’
Tacitus, Annals
Gold and silver were hit early on today, and knocked lower on high volume in relatively quiet trade, while the stock market was being pumped higher.
The Fed would like to set the stage for their FOMC meeting next week, and rather badly so. They are afraid to do it with these unstable equity and bond markets, because if they raise and then the market breaks, then they will be blamed for it. You can see that the IMF and the World Bank have already covered their posteriors by warning.
It is not a 25 basis point increase that will break these markets. They are already broken, an accident waiting to happen.
The Comex continues to bleed out, with additional gold and silver leaving their warehouses yesterday.
Registered (deliverable) gold has fallen to 185,314 troy ounces, a low we have not seen I believe in since before the year 2000. On a quick calculation pending the final numbers early tomorrow, I would think that the ratio of paper claim to actual deliverable gold at price is now at an unprecedented about 225:1. This is not ‘normal.’
Unless something changes, you can stick a fork in the NY version of ‘price discovery’, it is done.
Who is going to keep honoring a price set by a bunch of jokers playing liar’s poker with a stack of paper claims?
The largest gold bullion exchange in the world outside of Asia, the LBMA in London, is scraping the bottom of the barrel trying to find enough bullion to keep satisfying delivery requests for Asia at these prices. That is worth watching closely, although it has always been light on disclosure.
The real game now is in London, and the indications are that the costs to borrow physical for immediate delivery, which means refining into kilobars and shipment to Asia never to return, are soaring.

This post was published at Jesses Crossroads Cafe on 09 SEPTEMBER 2015.

[CHART] How Does U.S. Oil Consumption Compare to Other Countries?

September 9, 2015
There were 92.1 million barrels of oil consumed around the world every day last year.
There were 92.1 million barrels of oil consumed around the world every single day in 2014. According to the BP Plc. (NYSE ADR: BP) Statistical Review of World Energy 2015, that’s up 0.8% from 2013.
But how does U. S. oil consumption compare to other industrialized nations?
This chart shows how the United States stacked up against other big time oilconsumers in 2014…

This post was published at Wall Street Examiner by Alex McGuire ‘.

9/9/15: MSCI World EV/EBITDA ratio: Happy Bubbly

In the lightness of being inhabited by the world’s investors, no valuation is a bubble, until it is officially declared to not be a bubble. And so it has been since the start of the year, just as EV/EBITDA (Enterprise Value ratio to Earnings before tax, depreciation and amortisation) ratio of MSCI World Index for 23 Developed Markets economies peaked at levels ahead of all previously recorded ones:

This post was published at True Economics on September 9, 2015.

It Wasn’t a Crash – But it Could Become One

A Reminder by John Hussman
In light of the Nikkei Index soaring by more than 1,300 points (!) overnight – a single day gain of 7.7% – it is time to briefly review the current market situation. As to the Nikkei, we would note two things: 1. it was ‘catching up’ to what other markets have been doing, after having been the only stock market index that was significantly down the previous day (whereas all other markets soared after the close of trading in Japan) and 2. such enormous volatility – regardless of its direction – is usually not a bullish sign. Quite the contrary, in fact.
In his weekly market comment, John Hussman tries to defuse the hysteria surrounding the recent market break a bit, by reminding everybody that a 10% correction is not a ‘crash’, but actually a quite normal occurrence. The only reason why it felt abnormal was that there hasn’t been any market volatility for such a long time. It is this long absence of market volatility that was abnormal, not the 10% decline. He writes:

This post was published at Acting-Man on September 9, 2015.

Mom And Pop “Will Probably Get Trampled”: Alliance Bernstein Warns On Bond ETF Armageddon

Right up until China threw the financial world into a frenzy by devaluing the yuan right smack in the middle of a stock market meltdown that Beijing was struggling to contain, bond market liquidity was all anyone wanted to talk about.
Of course we’ve been talking about it for years (literally), as have a few of the sellside’s sharper strategists, but earlier this year the mainstream financial news media caught on, followed in short order by the rest of the Wall Street penguin brigade, and before you knew it, even the likes of Jamie Dimon were shouting from the rooftops about illiquid corporate credit markets.
The problem, in short, is that the post-crisis regulatory regime has made dealers less willing to warehouse bonds, leading to lower average trade sizes, sharply lower turnover, and a generalized lack of market depth. That in turn, means that trading in size without triggering some kind of dramatic move in prices is more difficult.
But that’s not the end of the story.
Seven years of ZIRP have i) herded yield-starved investors into riskier assets, and ii) encouraged corporates to take advantage of voracious demand and low borrowing costs by issuing more debt. The rapid proliferation of ETFs and esoteric bond funds has encouraged this phenomenon by giving investors easier access to corners of the bond market where they might normally have never dared to tread. These vehicles have also given investors the illusion of liquidity.
Ultimately then, the picture that emerges is of an increasingly crowded theatre (lots of IG and HY supply and plenty of demand) with an ever smaller exit (dealers increasingly unlikely to inventory bonds in a pinch).
With that as the backdrop, we bring you the following excerpts from a new paper by Alliance Bernstein:

This post was published at Zero Hedge on 09/09/2015.

Fed Economist Unveils Cunning Plan To Boost US Economy: Issue Even More Debt

Every so often, the Minneapolis Fed’s Narayana Kocherlakota likes to remind Congress that to the extent America has a problem with subpar economic growth, that problem can be solved with more debt. Of course all problems can be solved with more debt. That, as we put it a few months back, is an immutable truth, as critical to the pseudoscience of economics as Newton’s first law is to physics and we know it to be true because it’s propagated by one of the greatest economic minds in the history of the world: Paul Krugman.
But if the only place this finds expression is on Krugman’s New York Times blog then it won’t be much use when it comes to saving the world. Fortunately, there are central planners like Kocherlakota who are willing to turn Krugman-isms into policy.
Back in July, in remarks ironically prepared for delivery at a conference hosted by the Bundesbank, Kocherlakota noted that in order to lift the neutral rate, US lawmakers might want to consider issuing more debt. Translated from ‘economist’ to layman, that just means this: ‘we may need to ease again and we’re bumping up against the lower bound on the rate cut side and we’ve run out of monetizable assets on the QE side.’
Kocherlakota was quick to note that he wasn’t attempting to tell Congress what to do, he was only dropping subtle hints about what might happen to still-depressed aggregate demand if the Fed doesn’t have enough rope to do more of the things which have so far failed miserably when it comes to boosting said demand:

This post was published at Zero Hedge on 09/09/2015.

SP 500 and NDX Futures Daily Charts – Slippage

The Fed wants to raise their key interest rate by 25 basis points next week, at their meeting on September 16-17.
The reason they would like to raise is not because of the real economy or any concerns about inflation or even ‘full employment.’
The Fed has been stuck on the emergency zero bound for far too long, and stood idly by while economic inequality widened through the gaming of a corrupt system, and paper assets once again grew into a dangerous bubble.
They would like to raise rates to give themselves some room to maneuver policy when the next financial crisis comes.
They, and much of the status quo, is caught in a credibility trap that inhibits them from reforming the corrupt system that has been rewarding them, handsomely. The US is currently in the hands of a relatively small number of oligarchs.
There are indeed other countries that are ‘worse.’ That does not make what the US is now ‘good.’ Putting aside both good and bad for a moment, as a democratic republic it is not sustainable.
Sustainable recovery will only come when true reform of the political and financial system is accomplished.
Thinking people around the world are increasingly wise to the true nature of things. Their reactions vary. The rest of the people are angry, confused, and unfortunately often malleable to suggestions and PR campaigns from the major media.
That is the situation which we are in. I do not think I can state it any more clearly. Keep it in mind and it will help you to understand what happens next.
Is there anything you don’t understand about this?

This post was published at Jesses Crossroads Cafe on 09 SEPTEMBER 2015.

Shocking JOLTS for Janet

Janet Yellen’s favorite labor market indicator the JOLTS survey showed record job openings and hires in July but the ratio of hires to job openings continued to fall to new record lows. The plunge in this ratio is a metaphor for the maladjustment and distortion which ZIRP and QE induced in the labor market by incentivizing useless speculation and stock buybacks, along with constant cuts versus real investment in the labor force. Job openings are growing because employers can’t find workers to fill the jobs they are offering. Either workers don’t have the skills employers need, or the jobs are so menial and low paying that there are few takes takers.
I first wrote about this over a year ago:
… in spite of skyrocketing job openings, those jobs are not the kinds of jobs that real people, with their existing levels of skills, can fill, nor can they ever fill. There just aren’t that many rocket scientists and financial engineers available in the work force. Yes, that’s sarcasm. The biggest increase in openings has been in low paid restaurant and hotel jobs, which is just as much a problem. The US economy is beset with a huge, multi directional skills mismatch.’
So the growing number of job openings is not a good thing.

This post was published at Wall Street Examiner by Lee Adler ‘ September 9, 2015.

Comex Update: Plunge in Available Gold for Delivery

The latest update from CME Group shows a huge outflow of gold held for delivery by Comex. There are now less than 6 tons of registered physical gold available for delivery. For every 207 ounces of gold claimed by paper contracts on the Comex market, there is only one ounce of physical gold in Comex vaults. This is the lowest ‘coverage’ ratio in the history of the Comex.

This post was published at Schiffgold on SEPTEMBER 9, 2015.