Silver Eagle Sales To Hit Record… U.S. Mint 2015 Production To Halt Dec 11th

Investors looking to acquire 2015 Silver Eagles may just have a few more weeks to purchase the coins. If demand for Silver Eagles by the Authorized Dealers and investors remain strong over the next several weeks, we could see a record 47 million of the coins sold this year.
According to article, 2016 American Silver Eagle Release, Last 2015’s for Record:
It’s out with the old and in with the new. Earlier today, Nov. 24, the United States Mint announced that it would stop producing 2015 American Eagle silver bullion coins by Dec. 11 and that it would begin taking orders for the first 2016-dated issues on Jan. 11.
2015 American Silver Eagles will claim an annual sales record. That should happen by early next week, even as the U. S. Mint limits their sales.
The bureau has rationed sales of bullion American Silver Eagles for most of this year as demand has exceeded supply. The U. S. Mint has the production capability to produce many more of the one-one, .999 fine silver coins but, like other world mints, it cannot always acquire enough silver planchets.
Currently, the U. S. Mint has sold 43.8 million oz (Moz) Silver Eagles with three weeks remaining for sales to their Authorized Dealers. Here is the U. S. Mint memo sent to its Authorized Dealers (from article quoted above):

This post was published at SRSrocco Report on November 26, 2015.

Is Turkey Trying to Distract the World From its Debt Crisis Shooting Down a Russian Plane?

There is something not quite right about this entire incident of Turkey shooting down the Russian fighter jet and then attacking the rescue helicopter. Sorry, but Turkey is way out of line when they KNEW that Russia had no intention of attacking Turkey. A argument that Turkey will defend its borders implies there is a threat to Turkey, not simply a drive-by. There was plainly no reason for Turkey to take such action. They assume they are a NATO member and thus Russia cannot fire back without starting World War III. This is a totally reckless incident and unimaginable conduct of Turkey under these conditions when they clearly knew they were NOT under attack from Russia no less a single fighter jet.
Even if it were true that the Russian jet strayed into Turkish airspace, at best there should have been a scramble of jets to ‘protect’ its airspace without provoking war. This has been standard operational procedures between USA and Russia for years. It is not some coincidence that a Turkish film crew captured the incident. They were most likely tipped off to be at the right place at the right time.
This entire incident raises serious questions if the economic conditions in Turkey, being on the brink of a economic meltdown, did not deliberately try to provoke war to distract the world from its debt crisis. Turkey is being watched for many see it as the FIRST domino to fall in the Emerging Market Debt Crisis. This raises many, many serious questions about the motive behind this entire incident.

This post was published at Armstrong Economics on November 24, 2015.

Pfizer’s Mega-Merger Is NOT a Sign of Strengt

Pfizer’s (NYSE: PFE) acquisition of Ireland-based Allergan (NYSE: AGN) is the biggest mergers and acquisitions (M&A) deal in the history of the healthcare sector.
And with a price tag of around $160 billion, it would be reasonable to assume that Pfizer’s latest acquisition is a showing of its strength and vigor.
But this chart suggests otherwise. Take a look…

In reality, Pfizer’s stock has lagged the S&P 500 (SPY)… which has itself lagged the health care (XLV) sector… which has lagged the astronomical gains made by the pharmaceutical (XPH) sector.

This post was published at Wall Street Examiner by Adam O’Dell ‘ November 25, 2015.

Golden Disobedience

This week, we’d like to post a fun article by our friend, Sandy Sandfort. Sandy is a wealth of interesting stories, and he has a new website in the works. If you’d like to be notified when it goes live, send a note to: [email protected] Inertia is a human frailty. Too often, we go along to get along. We conform. Because of this, those who claim authority can get most of us to do their bidding if it comes with a plausible justification and is only incremental. We get nickel-and-dimed to death, the death of a thousand cuts.
Back on April 5, 1933, His Majesty, Franklin Delano Roosevelt (FDR), had a pen and a telephone. So he issued Executive Order 6102, which made it a federal crime for Americans to own or trade gold anywhere in the world. There were some minor exceptions for some jewelry, industrial uses, collectors’ coins, and dental gold, but the vast majority of the gold had to be turned in.

This post was published at Lew Rockwell on November 26, 2015.

Martin Shkreli Sets Out To Crush KaloBios Shorts: Will Stop Lending Out Shares

The brutal tragedy of at least one KaloBios short seller was first documented a week ago when we noted the margin call massacre that befell “novice” trader Joe Campbell, who went to bed with a $35K short on Wednesday and woke up with a $106 margin call the next morning after it was revealed that a “consortium” led by Martin Shkreli had taken an unknown stake in heretofore insolvent KBIO.
However, the story did not end there because the very next day we got new information that Shkreli had not bought just any amount of KBIO shares but a whopping 70%, which got us thinking: is the “most hated man in America” contemplating to unleash a Volkswagen scenario, in which he has acquired enough shares to leave more shorts outstanding than there is actual float, and then one day to simply pull all the borrow by no longer lending out shares to potential shorters.
This is what we said last Friday:

This post was published at Zero Hedge on 11/26/2015.

26/11/15: Counting Down to ECB’s Big Surprise…

Counting the week to December 3rd ECB meeting, I have to ask one simple question: does anyone over in Frankfurt has a clue what they are doing?
Earlier this week, Reuters reported on a conversation with an unnamed ECB source
Here’s what we have learned:
Things are far from smooth in the Euro area. We had some serious talking up on Money Supply side earlier this week, and we had incessant chatter about improving credit conditions. We even had promises of accelerated purchases in December (to offset holidays). But the ECB still appears to be directionless in so far as it still views QE road as insufficient. Menu of options is as wide as ever: more government bonds buys, deeper cuts to deposit rates, including a possible two-tier charge, purchases of municipal and regional debt, and even ‘buying rebundled loans at risk of non-payment has been discussed in preparatory meetings, although such a radical step is highly unlikely for now’. You really have to wonder: do they have any sense of direction (other than strictly forward)? “There are some who say you should surprise markets. But you cannot surprise indefinitely. Sooner or later, you are bound to disappoint.” That is per ECB official. Wait a second, sooner or later? Just how many iterations of this circus will we be looking at? ECB’s commitment (rumoured) to push through a major surprise is a desperate bet. If surprise works, markets are likely to overshoot fundamental valuations on all fronts: from EUR/USD and EUR/Sterling to major equities indices and bond prices. But overshooting is not likely to hold unless the ECB continues to surprise the same markets. If, as likely, inflation remains anchored at low levels over the time of these surprises, the ECB will find itself in a situation where the only way to trigger any positive response from the markets will be to double down on every turn. Scared yet?..

This post was published at True Economics on November 26, 2015.

Turkey Drops “Independence” From Central Bank Mandate As NATO’s Favorite Autocrat Strikes Again

In the nearly six months since summer elections saw AKP lose its absolute parliamentary majority in Turkey after a strong showing at the ballot box by the pro-Kurdish HDP, it’s been interesting to watch how the central bank has reacted (or, more appropriately, ‘not’ reacted) to periods of weakness in the lira.

This post was published at Zero Hedge on 11/26/2015.

A Heatmap Of Global CapEx ‘Shrinkage’

Hot on the heels of the biggest collapse in Australian Capex ever, and just as we predicted back in 2012, we thought it about time to once again re-visit – Godot-like – the never-ending wait for ‘recovery’ (or ongoing crash) in Capital Expenditure around the world.
Back in 2012 we accurately predicted that in the Brave New Normal World, where zero cost debt-issuance is used to immediately fund stock buybacks instead of being reinvested in growth and expansion, in the process boosting management pay through equity-performance linked option payout structures, that with every passing year CapEx spending would decline first in relative then in absolute terms, even as free cash flow use of funds is spent on other “here-and-now” shareholder-friendly activities such as buybacks and dividends would grow exponentially.

This post was published at Zero Hedge on 11/26/2015.

Jean-Claude Juncker Warns Border Control will Kill Euro

EU President Jean-Claude Juncker has warned of the end of the single currency if EU members resurrect border controls once again. This statement reflects the internal dissent with Germany over the refugee crisis. It certainly seems rather insane that Europe just open its doors in this manner with the inability to truly screen those who enter.

This post was published at Armstrong Economics on November 25, 2015.

Thanks ISIS: We “Can’t Keep Up With Surging Weapons Demand”, Pentagon Says

Any time there is a war and countless people in one, two or more nations die for some ideological, religious, ethnic, cultural or nationalistic “reason”, two entities benefit: those who supply the weapons and those who supply the loans to buy the weapons.
And when it comes to supplying weapons to the world, in both absolute dollar and relative (as a % of GDP) terms, nobody even comes close to that paragon of democratic values, the United States of America.

This post was published at Zero Hedge on 11/26/2015.

The Fed’s Bloody Hands

So while Alan Greenspan was being knighted and Ben Bernanke was named Time’s Person of the Year, ‘After 1998, other rich countries’ mortality rates continued to decline by 2 percent a year. In contrast, U. S. white non-Hispanic mortality rose by half a percent a year. No other rich country saw a similar turnaround,’ conclude Angus Denton and his co-author and wife Anne Case.
‘Drugs and alcohol, and suicide .’.’. are clearly the proximate cause,’ says Deaton, ‘Half a million people are dead who should not be dead,’ he added. ‘About 40 times the Ebola stats. You’re getting up there with HIV-AIDS.’
So while are white people killing themselves either slowly or quickly? Writing for The AtlanticOlga Khazan points to financial strain. While the Greenspan and Bernanke Fed exploded the money supply and lowered interest rates under the guise of making people’s lives better, with low rates making borrowing and the payments on homes, cars and gadgets people desire more affordable.
But while Americans lived it up in the here and now, Khazan points out many middle-aged people haven’t saved enough for retirement, so, ‘All of this is crashing down on Boomers, who were raised on the promise of the American Dream.’

This post was published at Mises Canada on NOVEMBER 21, 2015.

After Arresting Hundreds Of Stock Traders, China Cracks Down On “Malicious” Metals Sellers Next

Five months ago, in the aftermath of its biggest market crash since 2008, China unleashed an unprecedented series of measures to stem the selling tide, none more mindblowing than its threat (which was promptly executed) to arrest “malicious short sellers” or even worse. It did just that as the following stories recount:
China “Punishes” Hundreds For “Maliciously” Manipulating The Market China Arrests Three High Frequency Traders For “Destabilizing The Market And Profiting From Volatility” Chinese Authorities Arrest ‘King Of IPOs’ & ‘Hedge Fund Brother No. 1’ Partner Of “China’s Carl Icahn” Executed By Local Police After Attempting Escape Following Insider Trading Charges “We Arrested Some Folks” – How China “Fixed” Its Stock Market Chinese Hedge Fund Manager Denies She Was Arrested, Was Merely “Meditating“ The result of all these ridiculous interventions was two-fold: China effectively killed the market, as can be seen by the following chart of volume on China’s futures market, until recently the world’s biggest which overnight evaporated after China made it practically impossible to trade anything…

This post was published at Zero Hedge on 11/26/2015.

Is it Time to Get Defensive?

The S&P 500 is mostly flat for the year, but beneath the surface there has been a lot of movement. Some sectors, such as consumer discretionary, have pulled the major index up, while others are acting as a counterweight.
The chart below shows YTD performance for each of the nine S&P sector ETFs, relative to the S&P 500. Leaders to the upside include consumer discretionary, technology and healthcare. At the bottom end of the spectrum we have energy, utilities and materials.
One of the interesting battles that is occurring within the broader market has to do with the so-called defensive sectors.
These sectors include companies that produce items which are considered necessary for consumers. No matter how the economy is doing, the revenues, earnings and cash flows of these companies tend to remain stable.
The primary sectors considered defensive are Utilities, Consumer Staples and Health Care. After all, consumers cannot easily manage without gas and electricity, soaps and toothpaste, and of course their medicine.
From a more objective perspective, defensive sectors can be defined as those with a beta less than 1. Beta is a measure of the volatility of a security in comparison to the market as a whole. If a security has a beta of 1, it tends to move in line with the market. A beta greater than one indicates volatility in excess of the market, while a beta less than one indicates lower than market volatility.

This post was published at FinancialSense on 11/23/2015.

Giving “Thanks” To The Fed – Holiday Dinner Has Never Been More Expensive

As you’re probably aware, the Fed has a hard time spotting asset bubbles. Just as there was no housing bubble in 2006 according to the honorable and exceptionally ‘courageous’ Ben Bernanke, there’s no bubble in equities today and certainly no ZIRP-induced fixed income bubble either.
The other thing the Eccles cabal has trouble spotting – and this is of course inextricably linked to an inability to spot speculative excess – is inflation.

This post was published at Zero Hedge on 11/26/2015.

Gold and Silver Market Morning: Nov-26-2015

Gold Today -New York closed at $1,070.60 down from $1075.40. In Asia prices were lifted to $1,172. 45 as the dollar slipped slightly, still below 100 on the dollar index. The LBMA price setting fixed it at $1,072.50 up 30 cents on yesterday’s LBMA price setting. The dollar Index did not make it through the 100 level and now stands at 99.82 down from 99.96 yesterday. The dollar is at $1.0615 down from $1.0593 against the euro. In the euro the fixing was 1,008.81 down from yesterday’s 1,012.23. At London’s afternoon gold was trading in the dollar at $1,073.00 and in the euro at 1,010.74.
Silver Today – The silver price closed at $14.19 up 2 cents on yesterday. New York will be closed for Thanksgiving today. However, as we wrote the silver price stood at $14.38.
Gold (very short-term) The gold price will pause as New York remains closed today.
Silver (very short-term) The silver price will pause as New York remains closed today.
Price Drivers With New York closed we will see the importance of London’s pricing power on the gold price. With this morning showing Asia, yet again, lifting the gold price a few dollars, it is clear that New York dominates the gold price.

This post was published at GoldSeek on 26 November 2015.

26/11/15: On a long enough time line: Irish corporate inversions

Recently, I covered the Pfizer-Allergan ‘merger’ just as Irish media navel gazed into the usual ‘jobs for Ireland’ slumber. [You can trace much of it from here: Now, few links that catch up with my analysis:
Irish Times reported that the Exchequer may gain up to EUR620m in Pfizer’s Allergan deal, annually. Key quote: ‘Last year, Pfizer paid an effective tax rate of 26.5 per cent as a US company. Post-merger, it expects to pay between 17 and 18 per cent across the group. In Ireland, it will pay our 12.5 per cent tax rate on any international income routed through the new Dublin operation.’ Err, Irish Times, no. Pfizer will be paying lower effective rate than 12.5% because it will be able to avail of the famous/infamous OECD-allegedly-compliant ‘Knowledge Development Box’. How much lower? Ah, who knows. Bloomberg covers the same deal with a heading: ‘Pfizer’s Viagra Tax Dollars Head to Dublin as U. S. Loses Again’. A bit of a miss, as Ireland already milks Viagra fortunes, though with the new ‘investment’ that will most likely increase. Key quote: ”We are not pushing for inversions,’ Irish Finance Minister Michael Noonan told reporters in Brussels on Monday, referring to the controversial transaction meant to cut corporate tax rates. The agency charged with winning investment for Ireland ‘never promotes inversions. It’s a decision for the two companies.’

This post was published at True Economics on November 26, 2015.

Kurt Kallaus: Still No Recession; Expect Mild Acceleration in 2016

Debate between hardline bears and bull market enthusiasts keeps coming back to concerns over a looming recession with one side pointing to the ongoing slide in manufacturing and the other to a strong service sector.
‘It really is an interesting dichotomy, because the bifurcation between the manufacturing and non-manufacturing (sectors) … has been one of the largest spreads I’ve seen,’ Kurt Kallaus, a commodity futures trader and author of Exec Spec, told Financial Sense Newshour in a recent interview.
Kallaus points out that the service sector represents a much larger portion of the US economy, with manufacturing carrying far less weight as a barometer for future growth.
Since the non-manufacturing (service) sector is doing quite well, Kurt believes the US will maintain its current growth rates ‘with the potential for some mild acceleration as we move into the second or third quarter of next year.’

This post was published at FinancialSense on 11/25/2015.