Here’s What the Fallout from a China Stock Market Crash Looks Like

Chinese officials have tried their best to quell skeptics over a looming China stock market crash…
But the G20 Summit last weekend left investors none the wiser about the specific measures China intends to take to bolster its economy – the second-largest in the world.
‘Investors feel disappointed over the lack of good news from the G20, while the yuan has started to weaken again,’ said Steve Wang, a chief Chinese economist at Reorient Financial MarketsLtd., according to Bloomberg on Sunday. ‘There are signs of panic buying in China’s property market as prices in large cities continue to rise. A hazy economic outlook prompted some people to sell shares and buy homes, while many stocks remain overvalued.’
Indeed, there are signs of panic in the Chinese market right now. Shanghai residents flocked to government property trading centers on Tuesday to process deals, reported the South China Morning Post that morning. Agents and sellers said that the higher prices go, the more urgent buyers become not to miss the rising tide.

This post was published at Wall Street Examiner by Stephanie Munguia ‘ March 4, 2016.

It Begins: Palace Revolt against ECB’s NIRP

If ‘punishment interest exceeds the pain threshold….’
The Association of Bavarian Savings Banks, which represents 71 savings banks in the German State of Bavaria, has had it with the ECB’s negative deposit-rate absurdity, and it’s now instigating a palace revolt.
In 2014, when negative interest rates first hit Eurozone banks and ricocheted out from there, Germans called it ‘punishment interest’ (Strafzinsen) because these rates were designed to flog banks and savers until their mood improves. But inexplicably, their mood hasn’t improved.
Bank stocks have gotten clobbered as their profits have gotten hit by the negative interest rate environment. Stocks of Eurozone companies in general have come down hard, and the Eurozone economy simply hasn’t responded very well though the ECB is flogging it on a daily basis with its punishment interest.
And so Bavarian savings banks have had enough. The Frankfurter Algemeinehas obtained a memo by the Association of Bavarian Savings Banks that openly encourages its member banks to stash cash in their own vaults rather than depositing it at the ECB and paying the penalty interest of 0.3% to the ECB on these deposits.

This post was published at Wolf Street on March 4, 2016.

“There Is No Clear Way Out” – Richard Koo Says “The Price For QE Has Yet To Be Paid”

In his latest note tited “The Calm before The Storm”, Nomura’s traditionally downcast Richard Koo is not too excited about the market’s future prospects, in fact quite the opposite and makes the point that since QE was no game changer, not only is there no clear way out, but “the price for QE has yet to be paid.”
What does that mean for risk assets:
Recently, for example, the markets took a tumble when the Fed moved to normalize monetary policy. The US central bank responded by delaying the normalization process, which stabilized the markets, but eventually fears of falling behind the curve on inflation will force it to resume the process. That will lead to renewed market turmoil in a cycle that has the potential to repeat itself endlessly. I expect this balancing act between the monetary authorities, who want to push ahead with policy normalization, and the markets, which violently reject each such attempt, will persist for an extended period of time, interspersed with periodic lulls like the current one.
Some further insight from Nomura’s Richard Koo:

This post was published at Zero Hedge on 03/04/2016.

Manufacturing’s Back in a Jobs Recession

Manufacturing fell back into a technical jobs recession in February, as the sector’s 16,000 month-to-month jobs decrease combined with negative revisions to produce cumulative employment loss for the sector since July – seven months ago. The sequential job loss – the first since last August – also created another new all-time low (8.59 percent) for manufacturing employment as a share of total non-farm jobs.
In addition, February’s year-on-year manufacturing jobs gain (12,000) was its worst such performance since September, 2010 registered a decline. In pre-inflation terms, manufacturing wages fell sequentially for the second time in three months, and the sector’s year-on-year wage advance was the lowest (2.24 percent) since August.
Here’s my analysis of the latest monthly (February) manufacturing figures contained in this morning’s employment report from the Bureau of Labor Statistics:

This post was published at Wall Street Examiner by Alan Tonelson ‘ March 4, 2016.

An Establishment In Panic

Donald Trump ‘appeals to racism.’ ‘[F]rom the beginning … his campaign has profited from voter prejudice and hatred’ and represents an ‘authoritarian assault upon democracy.’
If Speaker Paul Ryan wishes to be ‘on the right side of history … he must condemn Mr. Trump clearly and comprehensively. The same goes for every other Republican leader.’
‘Maybe that would split the (Republican) party,’ but, ‘No job is worth the moral stain that would come from embracing (Trump). No party is worth saving at the expense of the country.’
If Republican leaders wish to be regarded as moral, every one of them must renounce Trump, even if it means destroying their party.
Who has laid down this moral mandate? The Holy Father in Rome?

This post was published at Zero Hedge on 03/04/2016.

Death Of Paper Gold Picks Up Speed BIG TIME Today

The Death of the paper gold market picked up speed today as Blackrock announced that issuance of new Gold IAU ETF shares was suspended. However, it’s much worse than the information in news release when we factor in the total supply and demand situation.
According to the article on Zerohedge, BlackRock Suspends ETF Issuance Due To ‘Surging Demand For Gold’:
BlackRock’s Gold ETF (IAU) has seen fund inflows every day in 2016 (no outflows at all) and with the stock trading above its NAV for most of the year, the world’s largest asset manager has made a significant decision:
‘*BLACKROCK SAYS ISSUANCE OF GOLD TRUST SHARES SUSPENDED
‘ *BLACKROCK SAYS SUSPENSION DUE TO DEMAND FOR GOLD
Now, why is this so interesting? Because, this now suggests a tightness in the paper gold market due to the last several years of surging physical gold demand…. especially now that China has recently become an ‘official’ Central Bank buyer of gold.
If we look at the increase in Blackrock’s iShares IAU ETF gold inventories, they have increased 1.2 million (Moz) in the first 2 months of the year:

This post was published at SRSrocco Report on March 4, 2016.

Stocks Tumble After Fed Plans Too-Big-To-Fail Bank Counterparty Risk Cap

US financials are tumbling after The Fed proposed a rule that would limit banks with $500 bln or more of assets from having net credit exposure to a ‘major counterparty’ in excess of 15% of the lender’s tier 1 capital. Bloomberg reports that The Fed’s governors plan to vote today on the proposal. The implications of this are significant in that it will force some banks to unwind exposures and delever against one another (most notably with potential affect the repo market which governs much of the liquidity transmission mechanisms). Guggenheim’s Jaret Seiberg warns the proposal is likely to be “stringent,” though less onerous than the Dec 2011 proposal.
*FED ISSUES PROPOSAL ON BANK INTERCONNECTEDNESS IN STATEMENT *FED TO PROPOSE BIG BANKS CAP CREDIT RISK TO EACHOTHER AT 15% *BANKS WITH $500 BLN OF ASSETS WOULD FACE 15% LIMIT UNDER RULE JPMorgan is tumbling…

This post was published at Zero Hedge on 03/04/2016.

Gold Daily and Silver Weekly Charts – They Just Could Not Resist.

Gold and silver were higher most of the day, with gold selling off a little after the markets closed in Europe and Asia. The wiseguys just could not resist. lol.
The handle is not set yet as gold failed to close over 1270, coupled with a weak retest of lower support in the early handle stages.
The bright side was that silver refused to give up most of its gains.
Tomorrow is another week.
I have to leave for an appointment now and will not be back until much later, so I will see you again Sunday evening.
Remember to care for the poor, the unfortunate, and all the creatures of His creation, as you would like someone to care for you and yours, whether they be ‘deserving’ or not, for His sake. This is the whole of the commandments and the law, the vitality of hope and faith, and above all love, which is the key to true life.

This post was published at Jesses Crossroads Cafe on 04 MARCH 2016.

Massive Gold Investment Buying

Gold’s powerful surge in 2016 has been driven by utterly massive investment buying. This is a marked sea change from recent years, where investors relentlessly pulled capital out of gold. But with that dire sentiment reversing, they are rushing back in with a vengeance. Major investment capital inflows into gold are an exceedingly-bullish omen, as they are what transform a mere gold rally into a new bull market.
With gold enthusiasm growing, it’s easy to forget how radically different things looked just a few months ago. Back in mid-December the day after the Fed hiked rates for the first time in 9.5 years, gold dropped to a miserable 6.1-year secular low of $1051. The popular level of antipathy towards this asset class by investing professionals was mind-boggling. They universally believed it was doomed to keep spiraling lower.
But with gold so epically out of favor and loathed, it was a dream buy for the rare contrarians. On the final trading day of 2015 as gold still languished at $1060, I published an essay titled ‘Fueling Gold’s 2016 Upleg’. In it I explained what was going to ‘fuel a mighty new gold upleg in 2016′, drawing much ridicule. And that usual pattern of early-upleg gold buying has indeed played out exactly like I forecast.
New gold uplegs emerging out of major lows are always driven by three distinct stages of buying. First futures speculators cover short positions, then futures speculators add new long positions, and finally investors follow the futures speculators in. The third stage is the biggest and most critical, and it only happens if the futures speculators’ early buying boosts gold high enough for long enough to win over investors.

This post was published at ZEAL LLC on March 4, 2016.

As The Economy Collapses The US Economic Statisical Manipulation Is Expanding – Episode 910a

The following video was published by X22Report on Mar 4, 2016
Over 80% of the jobs that were added were minimum wage. More waiters and bartenders were added and manufacturing jobs were lost. Hourly wages dropped as well. Since the great recession the US has been built back up on debt, auto and student loan debt. Blackrock is suspending the issuance of gold trust shares because of physical demand. Dry Bulk has declined and we are going to see alot of companies file bankruptcies. German banks are now hoarding cash. Moody’s says no sign of a recession in the near future, they said the same thing back in 2008.

Gold Price Today Jumps to 18% Gain for 2016 – Here’s What’s Next

Gold continues to be resilient in a year marked by stock volatility.
The gold price today is up $11.50 to $1,275.30. That’s a year-to-date gain of about 18%.
Not only has the gold price managed to remain above the $1,200 level, but it has been decidedly strong, not even testing below that level for the past couple of weeks.
Just take a look at what gold has been doing this week…

This post was published at Wall Street Examiner by Peter Krauth ‘ March 4, 2016.

Naw, We Don’t Need A Wall: Trump Wins General

Yes, the rest of the field will not build a wall.
They will not stop the illegal invaders.
They will not even stop an escaped drug lord from coming into the United States, TWICE, while on the lam.
Mexican drug lord Joaqun ‘El Chapo’ Guzmn allegedly snuck into the United States twice last year while on the run from authorities following his dramatic prison escape.

This post was published at Market-Ticker on 2016-03-04.

MAR 4/GLD ADDS A WHOPPING 7.13 TONNES TO ITS INVENTORY/SLV ADDS 5.426 MILLION OZ TO ITS INVENTORY/THE BIG NEWS OF THE DAY; BLACKROCK’S GOLD ETF, IAU SUSPENDS THE ISSUANCE OF SHARES BECAUSE DEMAND…

Gold: $1,269.90 up $12.50 (comex closing time)
Silver 15.68 up 55 cents
In the access market 5:15 pm
Gold $1259.40
silver: 15.53
At the gold comex today, we had a fair delivery day, registering 16 notices for 1600 ounces and for silver we had 102 notices for 510,000 oz for the active March delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 212.03 tonnes for a loss of 91 tonnes over that period.
In silver, the open interest rose by 1033 contracts up to 164,801. In ounces, the OI is still represented by .824 billion oz or 118% of annual global silver production (ex Russia ex China). Generally as we go into an active delivery month the liquidation is much bigger.
In silver we had 102 notices served upon for 510,000 oz.
In gold, the total comex gold OI rose by a gigantic 25,944 contracts to 482,938 contracts as the price of gold was up $16.30 with yesterday’s trading.(at comex closing)
We had another huge change in gold inventory at the GLD, a mammoth sized deposit of 7,13 tonnes and gold goes down early this morning? and rises only slightly? / thus the inventory rests tonight at 793.33 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. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. 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, after they deplete the GLD will be the FRBNY and the comex. In silver,/we again had a major change in inventory/this time another huge deposit of 5.426 million oz and thus the Inventory rests at 319.776 million oz
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on March 4, 2016.

“It’s A Depression” – The Disturbing Email A Houston CEO Sent His Soon To Be Laid Off Employees

This is the email that David Little, Chairman and CEO of Houston-based DXP Enterprises sent to his employees to explain why, “due to bank obligations and to continue a positive cash flow profile” the company has to freeze 401(k), why it is cutting pay in some cases as much as 60% and why many employees are about to lose their jobs in the middle of what is an “oil and gas depression.” It is a disturbing read.
Dear DXPeople, As you well know, these are very challenging times for everyone in the oil & gas industry and other industrial markets. We are working hard to navigate both the challenges in oil & gas and an industrial recession plus what appears to be continuing softening. Normally, when upstream oil and gas is down the rest of the industrial market is booming, not this time!
This past Friday, we announced our fourth quarter and year-end results. Our revenues were down 17% from a year ago and 27% from the fourth quarter of 2015 versus the fourth quarter of 2014. Fiscal year 2016 has started off even weaker than we anticipated with January sales down an additional 12% from December. Oil and gas related companies across the country have reported sales declines as high as 50% – 60%. All of this in the midst of declining industrial confidence and performance. Furthermore, the forecast by experts suggests the oil & gas economy will get worse before it gets better. We are currently 20 months into this oil & gas down cycle which is also unusually long for a correction.

This post was published at Zero Hedge on 03/04/2016.

CRIME TOTALLY PAYS: DC COUNCIL APPROVES PAYING CRIMINALS TO STOP COMMITTING VIOLENT CRIMES

This sounds like a mafia extortion shakedown, doesn’t it? However, it’s all too true.
The Democrat-controlled Washington, DC Council voted unanimously on Tuesday to approve a crime bill, which among other things will ‘pay for peace.’
According to one provision of the bill, it would pay as many as 200 individuals up to $9.000 per year in order to participate in therapy programs and stop committing crimes!
This has drawn heavy criticism from those looking on.
Washington City Paper reports that the council is even being tight lipped on who gets this money and how much they will receive.

This post was published at The Daily Sheeple on MARCH 4, 2016.