Just over a week ago the world was coming unglued, as enough British citizens grew a pair and spit in the face of the EU establishment and global elite by voting to exit the EU. The fear mongering by central bankers and their puppet political hacks failed to deter people who have become sick and tired of being abused and pillaged by bureaucrats working on behalf of bankers and billionaires.
Stock markets around the world plummeted on Thursday and Friday. The world braced for another Black Monday. The phone lines were buzzing between central bankers around the world over the weekend as their banker constituents demanded relief. If one thing has been proven over the last seven years, its a coordinated effort between central bankers and Wall Street banks to rig the stock market higher can work over a short time period.
The titans of finance were able to once again confound short-sellers and the prophets of doom with a 5% surge from the Friday lows over the next week. It was surely a coincidence the Fed declared all Wall Street banks, safe, sound, and capable of buying back their stocks to the tune of billions early in the week.
These insolvent zombies were now free to borrow billions to buy back their overvalued stocks, destroying shareholder value, while boosting executive compensation. Poor Jamie Dimon is struggling to get by on his $27 million per year. The Wall Street banks obliged by immediately announcing multi-billion dollar buyback schemes to capitalize on the short-term trading mentality of the 30 year old MBA trading geniuses who bought the news without worrying about the actual value of the stocks they were buying.

This post was published at The Burning Platform by Jim Quinn ‘ July 5, 2016.

Long Bonds Enter The Blowoff Stage

Back in late-2014 I first proposed the idea of a blowoff surge higher in the long bond. At the time, many were very negative toward bonds and expected higher interest rates were just around the corner. But after a massive, multi-decade bull market in bonds it was just very hard for me to expect it to come to an end without some sort of euphoric finale. And that’s where I think we find ourselves today – somewhere in that final phase.
Long-term bonds have absolutely crushed the performance of stocks for quite some time now but it’s the striking outperformance over the past six months that really has investors finally taking notice.

This post was published at Wall Street Examiner by Jesse Felder ‘ July 6, 2016.

“Crazy” – The Complete Story Of Debt, In A 40 Minute Video

Real Vision TV’s Grant Williams offers a true look into what is known as an absurd debt level and unimaginable central bank manipulation. Less than a week ago we highlighted Grant’s comments on commodities. Although the information contained in the video below is nothing new to Zero Hedge, we do enjoy the way the information is presented. Set aside some time to listen as Grant tells a story about debt and the current investment landscape.

This post was published at Zero Hedge by Tyler Durden/ Jul 6, 2016.

Can You Imagine The Fed Raising Interest Rates In This World? Europe In Chaos Edition

Two short months ago it was generally expected that US interest rates would rise for the balance of the year – a move made possible by steady economic growth and general global stability. Here’s a representative piece of reporting from early April:
WSJ Survey: Most Economists Expect Next Fed Rate Increase in June
Most private forecasters surveyed expect the Federal Reserve will leave short-term interest rates unchanged at its April policy meeting, and next raise them in June. Nearly 75% of business and academic economists polled by The Wall Street Journal in recent days said the Fed would next raise its benchmark federal-funds rate at its June 14-15 policy meeting, down slightly from 76% in the Journal’s March survey.
The Fed in December raised its benchmark federal-funds rate to a range of 0.25% to 0.50% after holding it near zero for seven years, and pledged to raise it gradually in coming years. It held rates steady at its policy gatherings in January and March, citing weak inflation and global economic and financial uncertainty.

This post was published at DollarCollapse on JULY 7, 2016.

“Whatever It Takes” Remains The New Normal

The gating of billions of dollars in commercial real estate funds by six U. K. institutional money managers has quite properly roiled markets. But, as Bloomberg’s Richard Breslow notes, it’s not because of the absolute size of the funds or because it will take some time for investors to get their cash out; rather, because it has exposed the manifold flaws continuing to drive investment psychology and practice.
Flaws reminiscent of some of the most obtuse assumptions that led to the financial crisis and have been the cornerstone of extraordinary monetary policies since then.
These funds exist because of the desperate search for any sort of yield. Can’t make any money from sovereign bonds? Just substitute into your portfolio a slice of a retail warehouse in Northampton.

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

‘Currency Crash’ Drives British Pound To A 31 Year Low As Deutsche Bank Sinks To The Lowest Level Ever

The fallout from the Brexit vote continues to rock the European financial system. On Wednesday, the British pound dropped to a fresh 31 year low as confidence in the currency continues to plummet. At one point it had fallen as low as $1.2796 before rebounding a bit. As I write this, it is still sitting at just $1.293. Meanwhile, the problems for the biggest banks in Europe just continue to mount. At one point on Wednesday Credit Suisse hit an all-time record low, and German banking giant Deutsche Bank closed the day at an all-time record closing low of 12.93. Overall, Europe’s Stoxx 600 Bank Index closed at the lowest level in almost five years. What we are watching is a full-blown financial meltdown in Europe, but because it is not personally affecting them yet, most Americans are not paying any attention to it.
The collapse of the British pound that we have seen since the Brexit vote has been nothing short of breathtaking. In fact, CNN says that this ‘is what a currency crash looks like’…
This is what a currency crash looks like. The pound has slumped to $1.28, its lowest level in more than three decades.
Investors are dumping the pound following Britain’s vote to leave the European Union on June 23. The pound has dropped roughly 15% since the referendum day, when it reached $1.50.
After appearing to stabilize, the pound resumed its decline this week after three big asset management firms halted withdrawals from real estate investment funds.
Of course this is likely only just the beginning. There are some analysts that are suggesting that the British pound could eventually hit parity with the U. S. dollar at some point. We are seeing seismic shifts on the foreign exchange market right now, and this is going to affect trillions of dollars worth of currency-related derivatives. It will be exceedingly interesting to see how all of this plays out.
Meanwhile, Deutsche Bank continues to get absolutely hammered.

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

I’m in Awe at How Fast Deutsche Bank is Coming Unglued

Bond-buyback miracle-nonsense flops. Shares, CoCo bonds plunge.
Deutsche Bank – ‘the most important net contributor to systemic risks,’ as the IMF put it last week after a lag of several years – is having a rough time. Shares dropped 4.2% today to close at a new three-decade low of 11.63, down 48% since July 31 last year, lower even than the low during the doom-and-gloom days of the euro debt crisis and the Global Financial Crisis.
It’s not the only European bank in trouble. Credit Suisse dropped 1.7% today to CHF 9.92, another multi-decade low, down 63% since July 31. Other European banks are getting mauled too. The European Stoxx 600 banking index dropped 3% today to 117.69, approaching the Financial Crisis low of March 2009.
If July 31, 2015, keeps showing up, it’s because this was the propitious day when Draghi’s harebrained experiment with negative interest rates and massive QE came unglued, when European stocks, and particularly European bank stocks began to crash.
Deutsche Bank is so shaky that German Finance Minister Wolfgang Schuble found it necessary to stick his neck out and explain to Bloomberg in February that he has ‘no concerns about Deutsche Bank.’ Finance ministers don’t say this sort of thing about healthy banks.

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

Just One Word Describes This Fed

A simple word count of the Fed’s minutes reveals that the prevailing mood at the Federal Reserve right now can be described with just one word. With exactly 13 instances in the latest, June, FOMC Minutes, it becomes clear that the Fed has never been more “uncertain”…

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

Domestic Trade Is Disintegrating: Heavy Truck Orders Plunge To Lowest Since 2010

Who says you need trade and logistics to maintain the S&P within 2% of its all time high? Not the Fed, that’s who, and it’s a wonderful thing because the state of US heavy trucking – the backbone of domestic trade infrastructure and logistical supply chains – suggests the US economy is in a far more dire state than the Fed would ever admit.
According to the latest data from ACT Research released today, June orders for new heavy-duty, or Class 8, trucks plunged to just 13,100, the lowest number since 2010 according to the WSJ (and since 2012 according to Bloomberg, but no need to split hairs here) indicating that trucking companies – the forward-looking bedrock of any viable recovery along with rails – expect little relief from a weak freight market and sluggish economic growth. This month’s order activity was the lowest monthly total since July 2012 and the worst June since 2009.

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


Good evening Ladies and Gentlemen:
Gold: $1,364.80 UP $8.40 (comex closing time)
Silver 20.16 UP 29 cents
In the access market 5:15 pm
Gold: 1363.00
Silver: 20.07
And now for the July contract month
For the July gold contract month, we had 4 notices served upon for 400 ounces. The total number of notices filed so far for delivery: 4023 for 402,300 oz or 12.51 tonnes
In silver we had 165 notices served upon for 825,000 oz. The total number of notices filed so far this month for delivery: 847 for 4,235,000 oz
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 293.802 tonnes for a loss of 9 tonnes over that period
In silver, the total open interest fell by a considerable 3321 contracts down to 211,347, AND STILL CLOSE TO AN ALL TIME RECORD. THE OI FELL DESPITE THE FACT THAT THE PRICE OF SILVER GALLOPED HIGHER BY 33 CENTS IN TUESDAY’S TRADING. In ounces, the OI is still represented by just over 1 BILLION oz i.e. 1.055 BILLION TO BE EXACT or 151% of annual global silver production (ex Russia &ex China).
In silver we had 165 notices served upon for 825,000 oz.
With respect to our two criminal funds, the GLD and the SLV:
WHAT!!!! we had A GIGANTIC DEPOSIT OF 28.53 TONNES in gold inventory./
Total gold inventory rest tonight at: 982.44 tonnes
Inventory rests at 341.453 million oz.
First, here is an outline of what will be discussed tonight:

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

FOMC Minutes Reveal Fed Wanted More Info Before Hiking

Since June’s FOMC statement, bonds and bullion have been well bid with stocks unchanged as rate-hike hopes collapsed. For those looking to glean insight from a confused Fed’s minutes today, we wish them luck. As WSJ notes, the minutes can prove to be dated and that will be especially so given that Brexit occurred just days after, so the best we could hope for from today’s minutes was “what-ifs.”
Most judged that they would need to accumulate additional information on the labor market, production, and spending to help clarify how the economy was evolving in order to evaluate whether the stance of monetary policy should be adjusted. In other words, nothing new as confusion continued, except for a Fed that is increasingly facing the realization that normalization is over as we draw readers’ attention to the fact that the wordcount for ‘uncertain’ soared to 38.
Pre-Minutes: S&P Futs 2086, 10Y 1.385%, Gold $1367, BBDXY 1188.5
Further headlines:

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

EU Banks Are In Trouble, Central Bankers Are Blaming The BREXIT As The Catalyst – Episode 1015a

The following video was published by X22Report on Jul 6, 2016
Italy’s retail sector declines. Spain’s social security system will implode within 2 years. There is no rebound, economic indicators are heading down. Domestic trade is imploding, class 8 trucking is declining. UBS has said that gold has hit a new trend. EU banks are insolvent and they are imploding right in front of our eyes. All of this is being blamed on the BREXIT. Goldman is now warning that the stock market might decline dramatically in the next two months

SP 500 and NDX Futures Daily Charts – Big Healthcare and Short Squeeze

Stocks sold off in Europe, and were selling off in the US in the early hours.
And then stocks turned around. I have heard several reasons for this. I think the most compelling is that the turnaround was led by the ‘most shorted stocks.’
Healthcare sector picked up the ball and provided leadership to the upside after the initial short squeezing was dissipating.
Non-Farm Payrolls on Friday.

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

Italy Bans Short-Selling In Monte Paschi For Three Months, Forgets To Ban Buying Of CDS

Yesterday we got the first sure sign that Italy’s banking system is near collapse when in a flashback to the Greek financial crisis days of 2010-2011, Italy’s bank regulator banned short selling in Monte Paschi shares for the day. Today, we can conclude that the Italian bank crisis is set to get far worse, because moments ago, Italy’s banking regulator just announced that what was supposed to be just a temporary measure has been extended for the next three months and shorting in BMPS shares is now prohibited until October 5.
Consob bans for three months net short positions on Banca MPS shares – The prohibition shall apply from tomorrow 7 July 2016 until 5 October 2016 – It affects derivatives and market makers as well Consob, with Resolution 19655 of 6 July 2016, decided to temporary prohibit net short positions on Banca Monte dei Paschi di Sienashares – BMPS (ISIN code IT0005092165).
The ban will be enforce for the next three months, from tomorrow 7 July 2016 (start of day) until 5 October 2016 (end of day).

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

Venezuelans Swarm Past Border In Search of Food: ‘We Crossed Because Our Children Are Hungry’

Venezuela is reaching the point of total desperation.
Women are now pouring over the Colombian border in effort to get their hands on groceries, trading on the black market and doing anything to survive.
That suggests other means of coping in the economically besieged capital of Caracas are wearing thin, and the difficulties of managing ordinary life under food shortages and long ration lines are forcing people to turn to alternative means of combating hunger.
According to the Miami Herald:
Dozens of Venezuelan women broke through a barricade along the Venezuelan-Colombian border on Tuesday with one goal in mind: finding food.
Local media in the Colombian border town of Ccuta, estimated that more than 100 people – mostly women – defied Venezuela’s border patrol and swarmed the frontier to do their shopping.
Inflation and falling oil prices have led to dramatic food shortages in Venezuela, and the border state of Tchira has been particularly hard-hit. In recent weeks, there have been widespread reports of looting and food riots.
‘We decided to cross the border because there’s no food in our homes and our children are hungry,’ one unnamed woman told Ccuta’s La Opinion newspaper.

This post was published at shtfplan on July 6th, 2016.