May Jobs Report Shockingly Bad

Last Friday, the BLS released its jobs report for the month of May.
It was shockingly bad.
In light of the strike on Verizon, a relatively weak report of 170,000 jobs was expected; however, the report delivered far below expectations with just 38,000 jobs created. The new data, detailing the worst jobs numbers in nearly six years, is also accompanied with downward revisions of earlier numbers. The BLS revisions of employment figures for March and April puts the economy with 59,000 less jobs than previously reported.
The labor force participation rate also decreased as 660,000 more workers left the labor force. The current participation rate of 62.6% is nearly the lowest the US has seen in the last four decades.

This post was published at Schiffgold on JUNE 6, 2016.

Goldman Fires Ex-Porn Star Over… Ethics?

If any of the quarter million students and graduates who applied for jobs this summer with Goldman Sachs have made an ‘adult’ movie in the past, we recommend having a plan B.
Goldman Sachs terminated an informal employment agreement with a woman after the firm found out she went by the name of “Shizuka Minamoto” in her “film” days prior to applying to Goldman according to Tokyo Reporter. Minamoto appeared in numerous adult films during her first and second years of college, and each DVD that was made touted Minamoto’s intelligence, noting on the cover that she has an IQ of 130. Apparently that IQ was good enough to land a job offer from a Goldman Sachs branch in Japan, albeit briefly.

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.

Consumers in Texas Begin to React

The worst plunge since the Financial Crisis
OK, this is anecdotal evidence supplied graciously by the Dallas Fed, via the comments in its Texas Service Sector Outlook Survey. It’s how a business in ‘Professional, Scientific and Technical Services’ sees the Texas economy. There are other businesses that are doing well, and some of the comments confirm that. Not everyone is getting slammed. But….
We were up 7.5% for the year through March. April alone put us down 2% year to date. That is what is going on out here in the real world … dang little! We are a 56-year-old family-owned company that averages 17% growth per year.
This economy is in and headed deeper into the tank faster than all the talking heads can spin their silly data and metrics to portray the story most beneficial to whatever lines their pockets best today. That said, Texas and our commodity-driven markets may set us apart as some sort of dark anomaly.
The stories are now piling up of oil-bust contagion working its way deeper into the overall economy of oil-producing states, including Texas. Unlike some other oil producing states, Texas has a vast and diversified economy. So from the beginning, it was said that this time, the oil bust won’t hurt like it did last time; the pain would be contained in its isolated corner of the economy. But this theory is now falling apart. It comes on top of the weakness of the overall US economy.
And consumers are reacting.

This post was published at Wolf Street by Wolf Richter ‘ June 6, 2016.

Free Money Leaves Everyone Poorer

Destroying Lives
BALTIMORE – A dear reader reminded us of the comment, supposedly made by Groucho Marx: ‘A free lunch? You can’t afford a free lunch.’
He was responding to last week’s Diary about the national referendum in Switzerland on Saturday. Voters will decide whether to give all Swiss residents a free lunch – a guaranteed annual income of about $30,000 a year [ed note: the initiative was overwhelmingly rejected with 78% voting against].
The problem with a guaranteed income (you get it no matter whether you have a job or not) is something we’ve been writing about for the last 15 years. It is the problem with all frauds… all cockamamie, jackass redistribution programs… and all something-for-nothing schemes.
And it is the same whether you are ‘stimulating’ an economy with artificial, phony-baloney ‘money’, giving aid to foreign dictators, or handing out free lunches to voters at home.
The Deep State, in addition to being malignant and entertaining, is incompetent. It fights wars just to lose them. It solves problems and makes them worse. Led by the Yellen Fed, it ‘improves’ the economy and leaves 9 out of 10 people poorer than they were before.
Today, we turn to a special war – the War on Poverty. Jesus dismissed it. ‘The poor you will always have with you,’he said. But that didn’t stop the feds from launching an attack.

This post was published at Acting-Man on June 7, 2016.

DHS Quietly Moving, Releasing Vanloads Of Illegal Aliens Away From Border

The Department of Homeland Security (DHS) is quietly transporting illegal immigrants from the Mexican border to Phoenix and releasing them without proper processing or issuing court appearance documents, Border Patrol sources tell Judicial Watch. The government classifies them as Other Than Mexican (OTM) and this week around 35 were transferred 116 miles north from Tucson to a Phoenix bus station where they went their separate way. Judicial Watch was present when one of the white vans carrying a group of OTMs arrived at the Phoenix Greyhound station on Buckeye Road.
The OTMs are from Honduras, Colombia, El Salvador and Guatemala and Border Patrol officials say this week’s batch was in custody for a couple of days and ordered to call family members in the U. S. so they could purchase a bus ticket for their upcoming trip from Phoenix. Authorities didn’t bother checking the identity of the U. S. relatives or if they’re in the country legally, according to a Border Patrol official directly involved in the matter. American taxpayers pick up the fare for those who claim to have a ‘credible fear,’ Border Patrol sources told JW. None of the OTMs were issued official court appearance documents, but were told to ‘promise’ they’d show up for a hearing when notified, said federal agents with firsthand knowledge of the operation.

This post was published at Zero Hedge on Originally posted Jun 6, 2016.

Something Big That Always Happens Right Before The Official Start Of A Recession Has Just Happened

What you are about to see is major confirmation that a new economic downturn has already begun. Last Friday, the government released the worst jobs report in six years, and that has a lot of people really freaked out. But when you really start digging into those numbers, you quickly find that things are even worse than most analysts are suggesting. In particular, the number of temporary jobs in the United States has started to decline significantly after peaking last December. Why this is so important is because the number of temporary jobs started to decline precipitously right before the last two recessions as well.
You see, when economic conditions start to change, temporary workers are often affected before anyone else is. Temporary workers are easier to hire than other types of workers, and they are also easier to fire.
In this chart, you can see that the number of temporary workers peaked and started to decline rapidly before we even got to the recession of 2001. And you will notice that the number of temporary workers also peaked and started to decline rapidly before we even got to the recession of 2008. This shows why the temporary workforce is considered to be a ‘leading indicator’ for the U. S. economy as a whole. When the number of temporary workers peaks and then starts to fall steadily, that is a major red flag. And that is why it is so incredibly alarming that the number of temporary workers peaked in December 2015 and has fallen quite a bit since then…

This post was published at The Economic Collapse Blog on June 6th, 2016.

Developed World Bond Yields Plunge To Record Lows

With the plunge in rate-hike odds and fears over Brexit, it appears the safety of global developed market bonds is sought after as Bloomberg’s Developed World Bond yield slumps to just 62bps – a record low. Yields are moving opposite to what economist expected (and have been expecting since the fall of 2011 when Ben Bernanke broke the capital markets).
Record low global bond yields…

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.

This Has NEVER EVER Happened Before At The Comex — Andy Hoffman

The following video was published by on Jun 6, 2016
Last Friday’s NFP report seals the deal, the US economy is on life support and now the Federal Reserve absolutely CANNOT raise interest rates because if they did it would cause “a global currency crisis unlike the world has ever seen” according to Miles Franklin’s Andy Hoffman. And against the backdrop of a crashing US economy that is doing anything BUT “creating” jobs, we have seen inventory levels of precious metals at the Comex crash to an never before seen level. Thanks for joining us as we document the collapse for the first week of June 2016.

‘San Francisco Housing Crisis’ Hits Market Limit

SF Apartments Offer Move-in Incentives as Tenant Demand Slows
Wolf here: Rents in San Francisco have soared to levels that are out of reach for middle-class households. Many have been living in rent-controlled buildings for years, and they can hang on. But if they get evicted, which is happening with increasing frequency, they often cannot find a place they can afford and are thus forced to leave the city. This includes teachers. It’s called the ‘San Francisco Housing Crisis.’ But it’s not a crisis for landlords, builders, and banks.
But now change may be afoot….
By Neil Gonzales, The Registry: Offering rental incentives is not uncommon in the apartment industry generally. But it is if it’s happening in San Francisco.
‘It’s a relatively recent phenomenon,’ said Patrick Carlisle, chief market analyst for the San Francisco-based Paragon Real Estate Group. ‘It is unusual’ given that the city’s apartment market has seen ‘frenzied demand’ over the last few years.
But as that demand – though still strong – has eased up partly because of a hiring slowdown; apartments have started to offer incentives to prospective tenants such as a rent-free month.
The newer, particularly bigger complexes primarily are the ones giving concessions rather than the older apartments, and this trend is expected to continue as deliveries add to the market’s inventory.

This post was published at Wolf Street by The Registry ‘ June 6, 2016.

BofA Credit Analyst Loses It: “Central Banks Created A Fantasy Land”

For those who have been forced to trade the market, or provide trading recommendations, the past few months have not been kind: we have seen several instances in recent weeks where a trader lost it, where a strategist – one as prominent as SocGen’s Albert Edwards – blew up and admitted “I’m Not Really Sure How Much More Of This I Can Take“, and even a central banker went off the rails saying he and his peers are “magic people.”
Today it is the turn of one of the more prominent (and bearish) sellside high yield analysts, BofA’s Michael Contopoulos, to join the bandwagon of those driven to near insanity by the Fed, something he himself admits in a note titled “cycle not acting its age as central banks create fantasy-land.”
The HY analyst says that while his bearish stance has gotten less pronounced in the last week as “Q1 earnings data was better than it had been in 6 quarters,” he adds that his “bearish stance most definitely still remains both on valuations and our disposition about the trajectory of corporate and economic data. Long term we continue to find it very difficult to see a path for high yield corporates to grow into their balance sheets.”
That’s the fundamentals and they scream sell. On the other hand, Contopoulos adds that fundamentals do not matter when faced with activist central banks who are intent on inflating the biggest debt bubble ever, one which even Goldman warned over the weekend would lead to as much as $2.4 trillion in MTM losses if rates rise by just 100 bps: “at the same time, we fully recognize and appreciate that low global yields and the need to stay invested creates a positive technical that is difficult to fight against.”

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.

9 Year Old Banned From Wearing Trump “Make America Great Again” Hat In School

Donald Trump is polarizing enough for most adults, but it appears The Donald polarizes 9-year olds as well.
After attending a rally and meeting Donald Trump, 9-year old Logan Autry was proudly wearing is newly signed hat bearing the campaign’s slogan “Make America Great Again” around his school (as is allowed outside of the classroom), but after a while, students started to pick at him for wearing the hat…

“They were saying that he’s stupid, they were saying stuff like that. I had to explain to them what Donald Trump was actually doing.” Logan said of the other children.
Instead of actually teaching the other students self-discipline and acceptance of others, school officials at Powers-Ginsburg Elementary just decided to be lazy and have Logan remove the hat.
“They told me to take my hat off because it brings negative emotions to the other children who don’t like him. I still said no I’m not taking it off, then the principal told me to take it off.” Autry said.

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.


Good evening Ladies and Gentlemen:
Gold: $1,244.60 UP $4.50 (comex closing time)
Silver 16.42 up 8 cents
In the access market 5:15 pm
Gold $1245.20
silver: 16.45
i) the June gold contract is an active contract and the second biggest delivery month of the year following December. Friday night, the bankers first day delivery issuance to our longs to be settled on June 1 was huge: the number was 3,508 gold notices for 350,800 oz or 10.9 tonnes of gold. On day two, we had another huge number of gold notices filed at 2281 for 228100 oz or 7.09 tonnes of gold. On day 3, THURSDAY, we had another whopper of 1969 notices for 196,900 oz or 6.12 tonnes. FRIDAY, saw another huge 1026 notices filed for 102600 oz (3.19 tonnes). Then on Friday night we had a whopping 2981 notices filed for Monday totaling 2981 contracts for 298100 oz. Thus in 5 days a total of 11,765 notices have been filed for 1,176,500 oz or 36.59 tonnes. WHAT IS MORE FASCINATING WAS THE FRONT JUNE MONTH INCREASED IN NET OI BY 678 CONTRACTS ON THURSDAY(67,800 OZ). ON FRIDAY IT INCREASED BY 78 CONTRACTS OR 7800 OZ AND TODAY IT INCREASED BY 264 CONTRACTS OR 26400 OZ. THE ENTITY STANDING DOES NOT WANT FIAT AND IT SURE LOOKS LIKE A SOVEREIGN (CHINA) IS STANDING FOR GOLD.
Let us have a look at the data for today.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 269.211 tonnes for a loss of 34 tonnes over that period
In silver, the total open interest FELL by 697 contracts DOWN to 194,908 DESPITE THE FACT THAT THE PRICE OF SILVER WAS UP by 34 cents with respect to FRIDAY’S trading. In ounces, the OI is still represented by just under 1 BILLION oz i.e. 0.974 BILLION TO BE EXACT or 139% 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 by a CONSIDERABLE 15,163 contracts UP to 496,259 as the price of gold was UP $30.30 with FRIDAY’S trading(at comex closing).
With respect to our two criminal funds, the GLD and the SLV:
We had no changes in inventory at the GLD/Inventory rests at 881.44 tonnes
And now for SLV
We had no changes in inventory at the SLV/Inventory/Tonight it rests at 337.299 million oz.
Both the GLD and SLV are massive frauds as they have no metal behind them!
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on June 6, 2016.

SP 500 and NDX Futures Daily Charts – Hypocrites’ Oath

Stocks were drifting in a relatively lackluster day.
For the first weeks in June it seems more like the dog days of Summer already.
It was very interesting to hear US Treasury Secretary Jack Lew lecturing China about what they ought to do with their economy. It was like listening to the king of the bar flies lecturing the people about the virtues of sobriety from his favorite corner stool.
There has been no recovery.
Tomorrow is a Super Tuesday in the Democratic primaries.

This post was published at Jesses Crossroads Cafe on 06 JUNE 2016.

“The Pain Trade Is Always Down In The End”

Volatility-selling activity is continuing to drive the short-term performance of the S&P. Starved for yield, Ice Farm Capital’s Michael Green explains that investors are selling volatility against their equity positions – and likely feeling their greatest risk is an upside move that takes them out of their underlying position. Against this, however, Green warns, the volatility selling is leaving them much longer than desired on a sharp down move. While current FOMO (fear of missing out) dominates, it’s important to remember that the pain trade is ALWAYS down.
As an aside, we note that the underlying trends of volatility-selling or buying minimum volatility ETFs, in some systematic belief that herding into this strategy will reduce risk. As Green details…
The flaws in human emotion and bias are often cited for reasons to embrace ‘passive’ or systematic investing. Unfortunately, unless the allocation is truly passive (meaning ALL securities in equal proportion to their existence) as I have discussed over the last few weeks, it simply becomes another form of active speculation – this time around driven by a one-time decision by someone embedded in an ETF machine rather than the thoughtful attempts by a highly skilled analyst. ‘Allocate to solar? Which solar? Let’s pick the large and liquid names at the creation of the index and embed them through a modified cap weighted index.’

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.

Nausea Rising

Considering that the 2016 election looks like a Dark Age puppet show – Pantalone and La Signora smacking each other with dildos – we forget this spectacle is serious. Rather large matters are at stake, such as the continuity of governance, the legitimacy of the two major political parties, the credibility of our financial arrangements, perhaps even the durability of the nation as a united polity.
Most of the deliberate comedy comes from Donald Trump, whose super-long dangling necktie looks like it was designed for laughs by the Commedia dell’Arte prop department, not to mention the hair, which I have maintained for many years is actually a wolverine living on top of Trump’s head. Trump certainly represents a large and valid strain of sentiment in the zeitgeist – the frustration of many ordinary citizens at government-sponsored racketeering that is shoving them into pauperdom. But his utterances against all that are so childish and disordered that he de-legitimates his own mission every time he opens his mouth.

This post was published at Zero Hedge on Jun 6, 2016.

Spain’s 2016 Election: Is There Any Hope for Liberty?

On the 26th of June, voters here in Spain will face the ballot box for the second time in half a year. The results of the previous elections were seen by the pundits as a watershed in recent Spanish history, since the hegemonic two-party system that had dominated the Parliament for almost forty years had finally been upended: the conservatives (Partido Popular, or PP) won again by a rather small margin, however the distance between the social-democrats (Spanish Socialists Workers’ Party or PSOE) and the new leftists (Podemos) was even smaller. The ‘newcomers’ (the Ciudadanos Party) lagged considerably behind.
Since the last election – in December 2015 – our political elites have been unable to put together a functioning executive government (the equivalent of an American “administration”), thus driving us to a new ballot.
Election Issues for 2016: More of the Same
Nevertheless, the deeply rooted image of Spanish society as an ideological kaleidoscope strongly contrasts with the dull electoral offer of the four main parties: none of the candidacies endorses any reduction of the governmental spending in a country where the budgetary deficit has been completely out of control for too many years and, at the same time, the most varied proposals to increase State intervention have lamentably become common ground. Even though we libertarians don’t need any excuse to defy public prodigality, the actual state of affairs forces us to confront the voting with nothing but disappointment.

This post was published at Ludwig von Mises Institute on JUN 6, 2016.

Pine River Shuttering $1.6 Billion Fixed Income Fund

Following a brief surge of hedge fund closure announcements in late 2015 and early 2016, there had been a lull in hedge fund shutterings in recent months, as the smart money community had benefited from the dramatic jump in the S&P500 to just shy of all time highs. That changed moments ago when Reuters reported that hedge fund Pine River Capital Management is closing its Pine River Fixed Income fund and returning roughly $1.6 billion in assets to investors just two months after Steve Kuhn, one of the fund’s co-managers, left the firm.
As Reuters adds, Brian Taylor, Pine River’s founder and co-chief investment officer, told clients on Monday that the eight year old fund, which posted some of the hedge fund industry’s most eye-popping returns but lost money in 2015 and early 2016, will be closed.
“The next step in this rationalization effort will be the orderly process of converting the holdings of the Pine River Fixed Income Fund to cash and returning that cash to investors,” Taylor wrote in a letter which was seen by Reuters.
“We feel that the timing is appropriate following the recent decision by Partner and Fixed Income Fund founder Steve Kuhn to reduce his role at Pine River to focus on philanthropy.”

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.

The Illusion of Falling Official ‘Unemployment’ Fades

Friday’s employment report featured the headline unemployment rate falling from 5.0% to 4.7% – which is a huge move lower. About the only encouraging aspect of the report is that markets largely ignored the fantasy headline for a change and focused on the ugly details. Nearly everyone acknowledged the report as bad news and markets reacted accordingly.
But not all. Janet Yellen and her crew at the Fed must see through the phony statistics because they are so reluctant to tighten monetary policy. Publicly, however, they talk about job growth and the wonders their stimulus policies have worked.
“There are three kinds of lies – lies, damned lies and statistics.”
-Mark Twain
President Barack Obama and Hillary Clinton also talk triumphantly about putting people back to work. Obama has been parading around the country talking about the fabulous economic recovery he has led. Hillary takes credit for a recovery as well, but promises she can do even better.
They prefer people focus on the headline number and not ask too many questions. After all, their people at the Bureau of Labor Statistics have been hard at work ‘seasonally adjusting,’ modifying the formulas, and otherwise massaging the data. They are painting such a lovely picture for voters to enjoy.
The ‘unemployment rate’ has fallen to levels not seen since before the 2008 financial crisis. It’s like magic. And just about as real as when David Copperfield made the Statue of Liberty disappear.
The contradiction in their data just keeps getting bigger. The phony ‘unemployment’ rate and the percentage of the population with a job, which readers get by digging into the report details, BOTH keep falling.

This post was published at GoldSeek on 6 June 2016.

Gold Daily and Silver Weekly Charts – Fed Cred

“The world can appear to be so empty if one thinks only of mountains, rivers, and even cities; but to know someone here and there who thinks and feels along with us, and though distant, is close to us in kindred spirit – this makes the earth seem like a peopled garden.”
Johann Wolfgang von Goethe
Too bad that the Fed’s policies are turning most of the real economy into a barren parking lot.
Janet Yellen was out speaking today, trying to salvage some shred of the Fed’s credibility after that awful Non-Fulltime Payrolls Report last week.
But despite the happy talk it just did not work.
Maybe people are listening to what the Fed heads are saying, but looking at the Fed’s own data and seeing things like this chart on Labor Market Conditions on the right.
As you may recall, the Fed will be meeting FOMC style next Tuesday and Wednesday. It is unlikely that they can raise rates by even 25 bp and ascribe that to economic necessity. If they cite their own policy needs then maybe. How can they lower rates again, given that negative rates are like some cruel prank gone viral, and they are still stuck near ZIRP?

This post was published at Jesses Crossroads Cafe on 06 JUNE 2016.