Legal Fictions and new Battlegrounds in the War on Cash

Greece – Ground Zero in the War on Cash?
We believe it was our friend Claudio Grass of Global Gold in Switzerland who first mentioned that the eurocracy may possibly have plans to use the Greek crisis as an opportunity to expand the ongoing war on cash. It stands to reason: Greece is well known for its extremely large ‘shadow economy’ (the name for economic activity that flies under the radar of the greedy grasp of the State). Greece’s citizens not unreasonably regard the State as akin to a mafia organization which they are trying to avoid as much as possible (unless it promises them free goodies to buy their votes – they do of course gladly accept those).
We vividly recall an interview with a Greek shipping magnate about the constitutional provision that has relieved the country’s shipping industry from income tax. The interviewer asked (we are paraphrasing) whether the magnate thought it ‘fair’ that this was so, and if he wasn’t troubled by his conscience in light of the Greek government debt crisis. The shipping magnate replied (again paraphrasing) along the lines of: ‘Just look at the government in Athens. They’re nothing but a bunch of crooks. Would you hand over your money voluntarily to Al Capone? Surely not. Well, neither do I.’
A great many ordinary Greeks undoubtedly agree with the shipping magnate. They have a very cynical, but ultimately quite well-informed view of the political class and the State. The reason why the Greeks are way ahead of most other European citizens in this department is rooted in history. Greece had been under Ottoman occupation from the 15th century until 1821. The so-called millet system led to the Orthodox Christian Greek community remaining a fairly cohesive group. However, the Greeks certainly chafed under Ottoman rule.
The occupation caused two waves of migration. In the first, many fled to Western Europe, in the second many fled from the plains to settle in the mountains. Greeks who remained in the plains either had to put up with the disadvantages of the Ottoman apartheid system, or they became so-called ‘crypto-Christians’ – people pretending to convert to Islam, while secretly remaining Christians. Needless to say, the Greeks deeply resented the Ottoman State and its bureaucracy, developing a healthy disrespect for the State in general in the process.

This post was published at Acting-Man on October 8, 2015.

This is How the Trade Pact Escalates the Currency War

When negotiators from 12 nations and hundreds of lobbyists from around the world, after years of horse-trading, agreed on a ‘trade deal’ on Monday – a deal that remains secret except for the sections that have been leaked – President Obama gushed that it ‘reflects America’s values.’
The Trans-Pacific Partnership (TPP) pries open markets for American goods and services and impose rules on our trading partners that give ‘our workers the fair shot at success they deserve,’ he said.
Similar praise ricocheted around the Pacific from Prime Minister Stephen Harper in Canada, and from politicians and heads of state in Australia, New Zealand, Japan, and the other participating countries. China isn’t part of the deal, but what the heck.
The free trade deal isn’t actually about ‘free trade.’ Many provisions that have been leaked deal with reshuffling the power structure between corporations and democratic states at the expense of citizens and taxpayers.
So now this thing has to be ratified in the 12 countries involved. There might be one or the other hiccup – for example, Hillary Clinton has just come out against it to gain points in her battle to the presidency. ‘As of today, I am not in favor of what I have learned about it,’ she told PBS, thus flip-flopping beautifully from when she, as Secretary of State, had backed the deal.

This post was published at Wolf Street by Wolf Richter ‘ October 7, 2015.

Global PEs and Price-to-Book Valuations; Bubble Debate Revisited

In JP Morgan’s Quarterly Market Guide a pair of charts on page 31 caught my eye.
Forward PE Estimates

I don’t have any faith in forward PE estimates. They tend to be overly optimist and subject to numerous “one-time” writeoffs.
Instead, I recommend watching 10-year smoothed PE ratios. See discussion below.
Nonetheless, please note that even on a forward-basis, the S&P 500 ratio is well above most other markets.

This post was published at Global Economic Analysis on October 07, 2015.

“I Would Say Don’t Worry” Says Chinese Central Banker As Indian Central Banker Says “World Economy Is Looking Grim”

Earlier today, the IMF with its usual several year delay, discovered what pretty much everyone else had known for years: that emerging markets have massively overborrowed, according to the IMF to the tune of $3 trillion, most notably in China.
Of course, this is one of the many things we have been cautioning about for the past 6 years, perhaps nowhere more vividly than in this November 2013 infographic showing “How In Five Short Years, China Humiliated The World’s Central Banks.”

This post was published at Zero Hedge on 10/07/2015.

Florida Libertarian Party Implodes

TALLAHASSEE, Fla. (AP) – Two years ago, Augustus Sol Invictus walked from central Florida to the Mojave Desert and spent a week fasting and praying, at times thinking he wouldn’t survive. In a pagan ritual to give thanks when he returned home, he killed a goat and drank its blood.
Now that he’s a candidate for U. S. Senate, the story is coming back to bite him.
The chairman of the Libertarian Party of Florida has resigned to call attention to Invictus’ candidacy in hopes that other party leaders will denounce him. Adrian Wyllie, who was the Libertarian candidate for governor last year, says Invictus wants to lead a civil war, is trying to recruit neo-Nazis to the party and brutally and sadistically dismembered a goat.
It’s an awkward situation for the small party that’s trying to gain clout.
Hahahaha…. oh that’s why Adrian resigned eh? C’mon Adrian, cut the crap.
This is the well-justified comeuppance for a party that lost its view of what it really stood for quite some time ago. I ought to know — I was part of it for a while and resigned in disgust after the state party endorsed Gary Johnson for President, a man who wasn’t very Libertarian and who famously stated nobody committed any crimeswhen it came to the financial crisis.

This post was published at Market-Ticker on Oct 7, 2015.

The Source Of The US Economy’s Only Bright Spot: $1 Trillion In Car Loans

Moments ago, the Federal Reserve released the latest, August, data on consumer credit which rose by $16 billion in the month, below the $19.5 billion expected, consisting of a $4 billion increase in credit card debt, and $12 billion in non-revolving, or auto and student loans, which at a combined total of $2.55 trillion now account for 73% of total US consumer credit.
The combined total monthly increase was the lowest since February on the back of a slowdown in non-revolving debt, while the increase in revolving credit was the weakest since May.

This post was published at Zero Hedge on 10/07/2015.

Gold Daily and Silver Weekly Charts – The Exceptional, Swirling the Drain

‘The sense of responsibility in the financial community for the community as a whole is not small. It is nearly nil.’
John Kenneth Galbraith, The Great Crash of 1929
Gold was a bit weak today, while silver was holding on to the 16 handle extremely well.
There were no deliveries at The Bucket Shop yesterday except in copper.
The bullion warehouses continue their slow bleed of inventory.
The commentary on US financial television would make Diogenes smash his lamp, and compel even the stoics to weep in despair.
And these are the courtiers to the exceptional.

This post was published at Jesses Crossroads Cafe on 07 OCTOBER 2015.

The Layoff Blood Bath Continues As The Economy Sinks Deeper Into The Collapse – Episode 785a

The following video was published by X22Report on Oct 7, 2015
The layoff bloodbath continues, more companies are laying off and its accelerating. Mortgage apps rose on the fear the FED was going to raise rates. The Baltic Dry Index declines again. The banks and the central banks are preparing to seize bank accounts. If the TPP is approved it will control trade throughout the world and support corporations and bankers, the people will suffer, jobs will be lostP

China Is Dumping U.S. Government Debt at an Alarming Rate

While our government’s debt has been a hot topic for many years, it’s the money that we owe China that has been frightening financial analysts, especially since the crash of 2008. The fact that we are indebted to one of our biggest competitors on the global stage, does not bode well for our future. The only question is, what happens if China decides to pull the rug out from under us by ditching these debts?
We may be about to find out, since lately, China has been dropping US government bonds like hot potatoes. After the Chinese government devalued the yuan in August, their currency experienced a massive sell-off by investors who feared that more devaluations were ahead.

This post was published at The Daily Sheeple on October 7th, 2015.

“They’re Converging To Dire Levels!”: SocGen’s Edwards Delivers Critical Warning On Inflation Expectations

At a certain point, one has to wonder if there will ever be a time when developed market policy makers throw in the towel.
When both Japan and Europe slid back into deflation lately, it served notice that trillions upon trillions in central bank asset purchases are definitely not working to restore confidence in the global economic recovery and/or reinvigorate inflation expectations.
However, you cannot simply print trillions in paper liabilities in order to purchase your own other paper liabilities (and no, that is not a typo, that’s just simply what’s happening here) without creating distortions across capital markets and that’s exactly what’s happened across the globe as the Fed and its DM brethren have “accidentally” engineered an epic case of capital misallocation that, far from promoting an increase in global demand and trade, has actually contributed to a global deflationary supply glut.
That is actually not nearly as complicated as it sounds. Put simply: if you keep uneconomic businesses in business, you also keep their supply online, which means that at the end of the day, if the fiat money you’re injecting doesn’t end up trickling down and stimulating aggregate demand because the NIM margins of the banks you’re giving it to are so low thanks to ZIRP as to discourage them from sharing the wealth, well then, all you’ve actually done is create a scenario where the idea of inflation expectations is essentially meaningless right up until everyone wakes up to what’s going on, and then it’s Weimar time.

This post was published at Zero Hedge on 10/07/2015.

A Stealth Bull Market in Gold and Silver Is Underway

What gold and silver investors want to know above all is when the bull market will resume. In a very real sense, it already has resumed. Futures market prices aside, evidence abounds that a raging bull market in physical precious metals is now underway.
In the third quarter (ending September 30th), coin demand went through the roof. Mints literallycouldn’t keep up with demand. The dysfunctional U. S. Mint rationed deliveries of Silver Eagles, failing to fulfill its mandate under law of keeping the market supplied. Even so, investors bought up a record 18.59 million ounces’ worth of silver Eagle coins in the past 4 months.
Steve St. Angelo of SRSRoccoReport.com compared the 2015 Silver Eagles shortage situation with the infamous 2008 incident. He found the current shortage occurred even as the U. S. Mint produced three times as many Eagles this time around!
Extraordinary conditions in the silver market are causing the mainstream media to sit up and take notice. As Reuters reported, ‘The global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U. S. buyers racing abroad to fulfill a sudden surge in demand.’

This post was published at GoldSilverWorlds on October 7, 2015.

SP 500 and NDX Futures Daily Charts – Waiting For Godot or Something Like That

‘If all else fails, immortality can always be assured by spectacular error.’
John Kenneth Galbraith
By this measure, the Federal Reserve is already amongst the immortals.
Oh, well done.
The economic news came in weakly this morning.
The ‘tax reform’ discussion on CNBC this afternoon was almost surreal in its detachment from economic reality.
After the bell Deutsche Bank reported that it would be taking a $7 billion loss on writedowns.
Earnings will start coming in after the bell on Thursday.

This post was published at Jesses Crossroads Cafe on 07 OCTOBER 2015.

OCT 7/HUGE WITHDRAWALS IN BOTH GLD AND SLV/AGAIN COMEX GOLD AND COMEX SILVER SEES ‘BANK RUNS’ ON THESE PRECIOUS METALS/DEUTSCHE BANK ANNOUNCES A SUDDEN LOSS OF OVER 6 BILLION EUROS/SOMETHING BURN…

Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1149.00 up $2.20 (comex closing time)
Silver $16.09 up 11 cents.
In the access market 5:15 pm
Gold $1146.10
Silver: $16.03
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a very poor delivery day, registering 0 notices for nil ounces Silver saw 0 notices for 10,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 212.75 tonnes for a loss of 90 tonnes over that period.
In silver, the open interest rose by a tiny 829 contracts despite the fact that silver was up a considerable 28 cents on yesterday. We thus must have had some sort of an attempt at short covering by the bankers but it failed. The total silver OI now rests at 156,226 contracts In ounces, the OI is still represented by .781 billion oz or 112% of annual global silver production (ex Russia ex China).
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rose to 430,228 for a gain of 8,526 contracts. We had 0 notices filed for nil oz today.
We had a sizable withdrawal in tonnage at the GLD to the tune of 1.78 tonnes/ thus the inventory rests tonight at 687.20 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 massive withdrawal in silver inventory at the SLV to the tune of 3.243 million oz / Inventory rests at 315.152 million oz. (somebody urgently needs silver)
We have a few important stories to bring to your attention today…

This post was published at Harvey Organ Blog on October 7, 2015.

America to Collapse As Dollar Dies: ‘You Cannot Stop What Is Coming… 25 to 50 Million Dead in 90 Days’

A collapse is coming… but not as quickly as many are expecting.
There are many people high up in the power structure who not only see an end to the dollar coming soon, but an economic collapse that could trigger the death of tens of millions of Americans – rendered vulnerable by the lack of services and the stopping of checks, and harmed by the resulting looting, starvation and violence that is likely to occur.
According to an anonymous source who claims to have high level insider sources, everything from the power grid to the grocery store, to the government assistance checks that huge portions of the country depend upon will simply not be there. The result is pure chaos, tragedy and destruction.

This post was published at shtfplan on October 7th, 2015.

The First Crack: Deutsche Bank Preannounces Massive Loss, May Cut Dividend

Amid numerous rumors that Deutsche Bank is among the corporations exposed to the VW fiasco, and to be clear there is no news to confirm that, DB has just kitchen-sinked it in a pre-announcement:
*DEUTSCHE BANK SEES 3Q NET LOSS EUR 6.2 BLN *DEUTSCHE BANK TO RECOMMEND DIVIDEND CUT OR POSSIBLE ELIMINATION Deutsche Bank stock is crashing down around 6% after-hours on the news.

This post was published at Zero Hedge on 10/07/2015.