Gordon Chang: China in Big Trouble, Could Bring Global Economy Down with It

Mike Gleason: It is my privilege now to welcome in author, lawyer, television pundit, and Forbes columnist Gordon Chang. Gordon is a frequent guest on Fox News, CNBC, and CNN and is one of the foremost experts on the Chinese economy and its geopolitics and has written a book on the subject called The Coming Collapse of China.
Gordon, it’s a real honor to have you on with us today. Thank you very much for taking the time, and welcome.
Gordon Chang: Thank you, and it’s a real honor to be on your podcast.
Mike Gleason: Before we dig into some specifics here, Gordon, China’s economy is now the second largest in the world. They’ve been reporting GDP growth at 7% to 10% per year for decades, and we’ve all heard stories about their booming economy. But few Americans have been there and probably don’t really know what’s going on. The Chinese government is notorious for managing statistics and controlling information, so it can be difficult for U. S. investors to get the real story. That’s why we’re very excited to get your insights today. You’ve spent time in China, you are of Chinese descent, and you’ve been studying their economy for decades, so you have a unique perspective on what is really happening there.

This post was published at GoldSeek on Monday, 16 May 2016.

“It’s Pretty Much Open Season” – Shoplifting Runs Rampant In California After Rule Changes

It turns out that thieves are smarter than politicians give them credit for, and thanks to Proposition 47 that passed in late 2014, this is something California is learning the hard way.
Proposition 47 downgraded drug possession and some theft crimes to misdemeanors in order to reduce prison and jail populations, and on that score, the referendum was successful.

This post was published at Zero Hedge on 05/15/2016.

‘This Is A Scary Time’ – CEO Explains The Single Biggest Reason Why People Are Buying Gold And Silver

We can talk about technical charts, supply and demand fundamentals, and price manipulation, all of which point to significant increases in the value of gold and silver for the foreseeable future.
But according to Golden Arrow Resources CEO Joseph Grosso, who is credited with the discovery of the largest silver deposit in history, the single biggest reason that retail investors, institutional players and governments around the world are gobbling up physical precious metals, resource stocks and ETF’s at unprecedented levels is that they are scared to death of the state of the global economy and where it will go next.
Like an expecting father waiting for five years to see a baby being born, we are at the inception of a mining economy… There is a pause, a slight pause towards the U. S. dollar and that pause is allowing the oldest currency in the world, gold and silver [to rise] and that is now in favor.
… Because there is fear. When there is fear, that’s when gold does best.
… Right now, this is a scary time… People want to hop out [of traditional assets] and find safety in precious metals.

This post was published at shtfplan on May 15th, 2016.

Securing Better Money Through Currency Competition

Competition is a good thing.
It brings out the best in athletes. It brings out the best in students. It brings out the best in companies.
Since monopolies remove the positive effects of competition, however, it makes sense to reexamine one of the most detrimental monopolies that ever existed.
Most folks would probably agree that government-run monopolies like the United States Postal Service and theDepartment of Motor Vehicles do a lousy job of serving the public, so why should we give bureaucrats a monopoly over our money as well?
It wasn’t always this way in America. And a few states are finally taking steps toward breaking the money monopoly that’s developed, thereby fostering viable alternatives to the US dollar.

This post was published at Ludwig von Mises Institute on May 15, 2016.

Thatcher’s Bruges Speech should be played on National TV

Margaret Thatcher’s historic speech known as the ‘The Bruges Speech’ delivered September 20th, 1988. Thatcher’s speech rejecting the political union of Europe which is the federalization of Europe. Thatcher proposed instead a wider, decentralized, outward-looking democratic Europe of independence: ‘I want to start by disposing of some myths about my country, Britain, and its relationship with Europe and to do that, I must say something about the identity of Europe itself. … Europe is not the creation of the Treaty of Rome. … Nor is the European idea the property of any group or institution.’
Armstrong Economics

This post was published at Armstrong Economics on May 15, 2016.

The GOP Finally Gets It: “People Just Don’t Care, Trump Rewrote The Playbook”

In a shocking moment of clarity, that should also send shivers up the spine of the Democratic party, Republican chairman (and implicity voice of ‘the establishment’) Reince Priebus admitted on various Sunday talk-shows that campaign traditions don’t apply to the so-called Teflon Don noting that “the public just wasn’t interested” in his taxes or the various ‘stories’ that the Deep State is throwing at him. “I don’t think the traditional playbook applies.. We’ve been down this road for a year. And it doesn’t apply,” Priebus exclaimed, and why the Clinton campaign is likely scrambling, “He’s rewritten the playbook.”
Summing up the reality of the current situation – with attacks coming at presumotive GOP nominee Trump from all sides – NBC News reports that Priebus said…
“I’ve got to tell you, I think that all these stories that come out – and they come out every couple weeks – people just don’t care.”

This post was published at Zero Hedge on 05/15/2016.

Watch Venezuela, Because Food Shortages, Looting And Economic Collapse Are Coming To America Too

The full-blown economic collapse that is happening in Venezuela right now is a preview of what Americans will be experiencing in the not too distant future. Just a few years ago, most Venezuelans could never have imagined that food shortages would become so severe that people would literally hunt dogs and cats for food. But as you will see below, this is now taking place. Sadly, this is what the endgame of socialism looks like. When an all-powerful government is elevated far above all other institutions in society and radical leftists are given the keys to the kingdom, this is the result. Food shortages, looting and rampant violent crime have all become part of daily life in Venezuela, and we all need to watch as this unfolds very carefully, because similar scenarios will soon be playing out all over the planet.
The funny thing is that Venezuela actually has more ‘wealth’ than most countries in the world. According to the CIA, Venezuela actually has more proven oil reserves than anyone else on the globe – including Saudi Arabia.
So how did such a wealthy nation find itself plunged into full-blown economic collapse so rapidly, and could a similar thing happen to us?
The president of Venezuela has declared a 60 day state of emergency in a desperate attempt to restore order, but most people don’t anticipate that it will do much good. Social order continues to unravel as the economy systematically implodes. The Venezuelan economy shrunk by 5.7 percent last year, and it is being projected that it will contract by another 8 percent in 2016. Meanwhile, inflation is raging wildly out of control. According to the IMF, the official inflation rate in Venezuela will be somewhere around 720 percent this year and 2,200 percent next year.

This post was published at The Economic Collapse Blog on May 15th, 2016.

IceCap Asset Management: “The Trend Continues”

Submitted by IceCap Asset Management: April 2016 Letter to Investors

Revenge of the Risotto
ITALY (Rome) – Soft opera soared through the vaulted ceilings. Brunello di Montalcino poured freely in every glass. And then there was the risotto – the exquisitely prepared dish bounded with wild mushrooms, wild boar, and wild thyme. A perfect pairing for the wild bankers and even wilder, government officials. It was only early evening, but the laughter and back slapping was certain to flow into the late morning hours – and deservedly so, after all the Italian overlords had just pulled the wool over not only their 60 million countrymen, but also their dreaded and despised monetary rulers in Frankfurt.
Revenge would be savoured.
GERMANY (Frankfurt) – There was no music, no wine, and worst of all – no risotto. Yes, the European Central Bank (ECB) is based smack dab in the middle of no-fun Germany, but the President of the ECB is 100% Italian. And after 5 years of continuously taping, gluing, and conniving to hold the European financial system together, Mario Draghi was approaching his wits end. With the Germans, French, Spanish, Portuguese, Greeks, and now the Italians sharpening their knives, Draghi certainly isn’t tasting any love.
But what these countries don’t understand, is that you never go against an Italian central banker, when death is on the line – or worse still, when he is denied his risotto.

This post was published at Zero Hedge on 05/15/2016.

“The Global Negative Feedback Loop” – Why Investors Are Fleeing Capital Markets

The following comprehensive analysis of current market risks and concerns, represents one of the better summary assessments by both Brean Capital’s Russ Certo as well as Bloomberg’s market analysis team, of not only why there seems to be an increasingly more tangible sense of gloom covering global capital markets, but also why investors are increasingly withdrawing from risk, leaving central banks to duke it out among themselves.
Traders Pull ‘Singed Fingertips’ From Markets as Risks Escalate
Investors are fleeing and volumes are falling due to extreme valuations amid global uncertainties related to monetary policy and political decisions made in wake of the 2007-2009 financial crisis. It’s a flight that’s creating a negative feedback loop.
“First it’s China, then Japan, then the ECB. When you singe the fingertips of speculators, they don’t like to play anymore,” says Brean Capital managing director Russ Certo Major banks worldwide are paring trading operations as part of a push to cut costs amid rising regulatory requirements Investors “are stewards of other people’s money and they don’t want to allocate capital to a pyramid scheme“: Certo

This post was published at Zero Hedge on 05/15/2016.

OFFICIAL SOURCE: Global Silver Supply Deficit Surges On Revised Data

If the cumulative global silver deficit since 2004 of one billion ounces wasn’t large enough, a data revision published by the Silver Institute shows the actual figure was much higher. How much higher? A great deal when the additional revised amount would totally wipe out all the silver at the Comex and Shanghai Futures Exchange warehouses.
The Silver Institute receives its figures from the GFMS Team at Thomson Reuters. The GFMS Team also puts out the World Silver Surveys. Some of the data from the World Silver Surveys are published on the Silver Institute website.
Before I get into the details of this deficit revision, I want to discuss the notion put forth by many precious metals investors that ‘NONE’ of the information from the Silver Institute should be trusted. These folks claim that ‘ALL’ the data is manipulated.
While I agree that this data is being researched, quantified and published by Thomson Reuters, one of the largest data-news organizations in the world, there is a lot of good information in these World Silver Surveys. Matter-a-fact, much of the silver mine supply data is taken from government sources such as the USGS in the United States.

This post was published at SRSrocco Report on May 15, 2016.

Election 2016: Alien Vs Predator

Submitted by David P. Goldman via PJMedia.com,
A fit of high dudgeon has gripped many of my Republican friends, ex-friends, and soon-to-be-ex-friends now that Donald Trump has all but won the Republican nomination. My advice to them: get over it. This presidential race will look like Alien vs. Predator. I’m for Predator, without a second’s hesitation, because he’s our Predator. For all his faults Donald Trump would be (and I’m confident will be) an incomparably better president.
I’m not pleased about the outcome of the primaries. I supported Ted Cruz and helped out in his campaign with economic research and news analysis. Yes, Trump is a vulgarian with poor impulse control. I don’t like him and find his vulgarity objectionable and his insulting remarks about Mexicans (for example) deplorable. The mother of my children is Mexican, and I take this sort of thing personally. If I ever have the opportunity I will give Trump a black eye.
But there’s a war on–three different wars, in fact. To remain neutral is moral cowardice; to choose the wrong side would be downright wicked.

This post was published at Zero Hedge on 05/15/2016.

London’s Ex-Mayor Compares The European Union To Hitler

If the US presidential election has devolved into a comical soundbite free-for-fall, then the UK has its hands full with Brexit, and how the two opposing camps are approaching the UK’s vote to exit the Eurozone on June 23.
On one hand there are the fearmongers who comprise the “stay” campaign, among which such glowing examples as PM David Cameron who last week warned World War III could break out in case of an affirmative vote, followed shortly after by BOE governor Mark Carney warning of recession risk and a sharp plunge in Sterling, while the IMF’s Christine Lagarde likewise chiming in in defense of the status quo.
On the other hand, those in the pro-Brexit “leave” camp have been riding the recent wave of anti-immigrant sentiment sweeping Europe, and have been pushing to portray the increasingly shaky European Union (whose customs union may or may not survive another refugee onslaught) as the reason for UK economic weakness.

This post was published at Zero Hedge on 05/15/2016.

If Geography and Demographics Are Destiny, Who Will Be the Winners and Losers in 2025?

Owning any asset in poorly positioned nations is an inherently risky bet going forward.
The dictum ‘demographics is destiny’ proposes that all the complexities of finance, society and politics are ultimately guided by demographics: the relative size of each generation, birth rates, death rates, etc.
For example, an oversized generation of retirees and an undersized generation of workers to support them has far-reaching consequences that can’t be legislated away.
The influence of demographics isn’t limited to pension costs. Some analysts have made the case that oversized generations of young men align all too well with the launching of wars.
The point is that birth/death rates – low and high–have consequences that impact national destinies for decades.
Another school holds that geography is destiny: if a nation’s geography is favorable, the barriers to prosperity and stability are low, while the barrier is high for nations with unfavorable geography.

This post was published at Charles Hugh Smith on SUNDAY, MAY 15, 2016.

Why Conventional Investors Are Getting Slaughtered

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
Recently, legendary investor and philanthropist Stanley Druckenmiller made news when he said that investors should sell their stocks and buy gold. Lost in that message – with which I wholeheartedly agree – was another important point that Druckenmiller made in looking back at his career.
He noted that when he started Duquesne Capital Management in 1981, the risk-free rate of return was 15%. That was the era when the U. S. was facing run-away inflation, iconic Federal ReserveChairman Paul Volcker had raised interest rates to the high teens, and Treasury bonds paid very high yields.
Investors could simply buy Treasuries and earn high nominal returns (though on an inflation-adjusted basis they were far less impressive).

This post was published at Wall Street Examiner by Michael E. Lewitt ‘ May 15, 2016.

What’s Next For Apple And The S&P: This Is What The Charts Say

Following last week’s relentless drop in Apple, and what appears to be a head and shoulders cap to the S&P rally which started with a double bottom in February, two questions posed most frequently by traders are i) what happens to AAPL next and ii) where does the S&P go from here.
We don’t know, since fundamentals clearly dont’ matter while technicals tend to be offset on virtually every step by some new and improved jawboning by central bankers, however, here is one attempt to answer that question by Bank of America’s chief chartist Stephen Suttmeier.
Here are his key takeaways:
AAPL breaks key support at $92.50 to expose $82-76. First resistance: $92.50-95.90. S&P 500 tactical head-and-shoulders top watch while below 2075-2085. Break of 2039-2033 needed to confirm this bearish setup.

This post was published at Zero Hedge on 05/15/2016.