How “Amerexit” Sent Shockwaves Through Financial Markets

BRITAIN’S decision to leave the European Union has sent shockwaves across the financial community. On June 24th, the day after the referendum, shares in Britain’s FTSE 100 stock index fell by 3% and the pound hit a 31-year low against the dollar (though the currency has remained under pressure, stocks have since soared back higher). London’s status as Europe’s financial capital remains under question and many fear Britain’s role in the world has been permanently diminished.
Difficult divorces are not new in Albion.

This post was published at Zero Hedge on Jul 12, 2016.

Great American Oil Bust Rages on; Defaults, Bankruptcies Soar

How much worse is 2016 than 2015?
Junk bonds, trading like stocks since February, have skyrocketed and yields have plunged. But that doesn’t mean that the bloodletting is over.
The trailing 12-month US high-yield bond default rate jumped to 4.9% at the end of June, the highest since May 2010 as the Financial Crisis was winding down, Fitch Ratings reported today. The first-half total of $50.2 billion of defaults already exceeds the $48.3 billion for the entire year 2015.
Energy companies accounted for 56% of those defaults. The energy sector default rate shot up to 15%. Within it, the default rate of the Exploration & Production (E&P) sub-sector soared to 29%!
And the default party isn’t over: ‘Despite the run-up in prices since the February trough, there will be additional sector defaults, with Halcon Resources expected to file imminently,’ Fitch reported.
Issuance of junk bonds in the first half has plunged 34% from a year ago, to $120.5 billion, according to the Securities Industry and Financial Markets Association (SIFMA), as junk-rated energy companies are having one heck of a time borrowing money and issuing bonds. The fact that investors – who’ve now been burned for nearly two years – are reluctant to extend new credit to teetering oil & gas companies precipitates their default and bankruptcy. Fitch:

This post was published at Wolf Street by Wolf Richter ‘ July 12, 2016.

On Manhattan’s “Billionaire’s Row”, A Death Knell Just Tolled For Luxury Real Estate

Some will say that it was visible from the 95th floor, so to speak, but even so the metamorphosis taking place in the Manhattan real estate market over the past year has been a stunning development.
Having followed the collapse in the New York luxury housing segment, most recently in “Desperate Sellers Resort To Dramatic Price Cuts In Manhattan’s Luxury Real Estate Market“, as a result of the sudden halt in inbound offshore hot money mostly of Middle Eastern, Latin American and Chinese origin due to the crackdown on anonymous LLCs, money laundering and just the general drop in offshore ultra high net worth over the past year, we thought that we were prepared for ongoing news of a sharp slowdown in NYC luxury retail sales.
That said, even we were surprised by the following NYT narrative of just how dramatic the slowdown in the most opulent segment of NYC housing has been.
In many ways it mirrors, or perhaps precedes, the inevitable bursting of the private tech bubble – both marked by wildly overvalued assets whose prices are not grounded in anything remotely close to reality, exorbitantly expensive only because a handful of the world’s uber-wealthiest flip them back and forth to each other, in what is both a game of hubris as well as hopes of finding ever dumber money.

This post was published at Zero Hedge on Jul 12, 2016.

TEXAS GOVERNOR BADLY BURNED IN HOT WATER ACCIDENT ON SAME DAY AS DALLAS SHOOTING; MAY MISS GOP CONVENTION

Texas Republican Gov. Greg Abbott has reportedly received ‘extensive second- and third-degree burns’ from his knees down to his feet while he was with his family in Jackson Hole, Wyoming last Thursday. Though it is being reported that the accident involved scalding hot water, no further information was given specifically as to how this happened to him and his spokesman declined to provide further details.
Governor Abbott has used a wheelchair ever since 1984, when a tree fell on him while he was out jogging. Although he is paralyzed from the waist down, his nerves still receive pain according to Fox.

This post was published at The Daily Sheeple on JULY 12, 2016.

The IRS Wants A Piece Of Your Gold And Silver Profits: Here’s What You Need To Tell Them… And What You Don’t

With gold and silver gaining popularity as safe haven assets during economic crisis there is a strong possibility that we’ll see prices go to all-time highs in the future. With those price increases will come windfall profits for investors. And, as you already know, where there’s profit, there’s a government with its hands in your pocket trying to get a piece of the action.
On that note, online gold and silver dealer JM Bullion has put together this nifty guide to help you decipher what the IRS does or does not need to know about your precious metals investments:

This post was published at shtfplan on July 12th, 2016.

Gold Daily and Silver Weekly Charts – Stock Option Expiration – Risk On!

Did I mention this is the week of the July stock option expiration?
And there are a lot of precious metal mining stocks with very fat gains, and a lot of leveraged bullish bets that are aching to be tested by the market bed bugs, aka the parasitic algos and ‘market makers.’
Today the wiseguys were feeling fearless, and were tossing their hot money back into the risk trades, mostly to squeeze the other guys who had sought safer, calmer waters from bonds to precious metals.
Let’s see how things progress. So far this is a normal retracement in the precious metals from a short term overbought condition.

This post was published at Jesses Crossroads Cafe on 12 JULY 2016.

6 Regional Feds Voted To Hike The Discount Rate In Early June, Up From 4 In April

Back in April, when the world was still reeling from the China devaluation inflicted market slump, the Fed’s discount rate minutes for the months of March/April showed that 4 regional Feds wanted a 25 bps rate hike, up from just two – the Richmond Fed and Kansas City – in the Feb/March meeting. Moments ago the Fed released its latest May/June Discount Rate Minutes which revealed that both the (Jim Bullard’s) St. Louis and Boston Feds joined four other regional Feds, Cleveland, Richmond, Kansas City and San Francisco, in seeking a quarter point increase in Fed discount rate to 1.25 percent prior to the June 14-15 FOMC meeting.
Obviously, there was no rate hike, as the Fed chose to maintain its primary credit rate at 1%. What is more surprising is that Bullard’s St. Louis Fed was among the “hawks”, even though just a few weeks later, the same James Bullard infamously flipflopped and now predicts just one rate hike until 2019.
The regional directors who supported a rate hike increase did so ‘in light of actual and expected strengthening in economic activity and their expectations for inflation to gradually move toward the 2 percent objective.’
However, it is worth noting that Boston, Richmond, St. Louis, New York, Philadelphia, and Minneapolis voted on June 2, just a day ahead of June 3 report which revealed the abysmal May U. S. payrolls report and which ground the Fed’s rate hike cycle to a halt.
From the minutes:

This post was published at Zero Hedge on Jul 12, 2016.

Gold Revaluation Is The Only Solution

Gold stocks continue to take out key highs, but in the big picture, the upside action has barely started. Please click here now. Double-click to enlarge this quarterly bars XAU index versus gold chart. A multi-decade rise in gold stocks versus all other assets is likely beginning. Institutional money managers are buying on days of strength, weakness, and sideways price action! Why are these money managers so enthusiastic about gold, and even more enthusiastic about gold stocks? Well, central banks around the world are engaged in a bizarre policy of low interest rates and quantitative easing that is ostensibly designed to ‘kickstart the economy’, but is really designed to allow governments to borrow and spend until the cows come home. Negative interest rates allow governments to borrow money, and make a profit on their reckless actions. In America and Japan, where a lot of citizens are elderly, negative real interest rates on pensioners is very destructive. In Japan, most pensioners lost large amounts of money in the huge equity bear market that began in 1989. Now, the remnants of those investments are subject to negative interest rates. They are pulling money out of the banking system, holding cash, and buying gold.

This post was published at GoldSeek on 12 July 2016.

JULY 12/ANOTHER RAID ON GOLD AND SILVER/CHINA’S STATE OWNED OPERATIONS BURNING CASH AS THEY ARE ALL UNPROFITABLE/THE HAGUE’S DECISION ON THE SOUTH CHINA SEA’S GOVES AGAINST CHINA: THEY DECIDE TO …

Good evening Ladies and Gentlemen:
Gold: $1,334.10 DOWN $20.90 (comex closing time)
Silver 20.13 DOWN 14 cents
In the access market 5:15 pm
Gold: 1333.00
Silver: 20.14
And now for the July contract month
For the July gold contract month, we had 0 notices served upon for nil ounces. The total number of notices filed so far for delivery: 4,065 for 406,500 oz or 12.643 tonnes
In silver we had 216 notices served upon for 1,080,000 oz. The total number of notices filed so far this month for delivery: 1326 for 6,630,000 oz
The crooks will now do anything to orchestrate a sell off in our precious metals. They are very concerned about silver as they lean on gold hoping to generate a waterfall in price. The bankers are massively short comex paper and need lower prices so as to cover and ameliorate those losses.
If major players/and or sovereigns are reading this, tonight and tomorrow will be a great time to pick up cheap contracts and put those contracts to the crooks.(take delivery of physical metal)
It is interesting that we have a new all time high open interest in gold at 657,000 contracts. The previous record level was set with gold at $1886.00 or a good $500 dollars below its zenith price. In silver we are again within spitting distance of its all time high of 218,000 contracts. Before we surpassed the previous high OI, the price of silver at the time of the record high was $49.00 per oz. It goes to show you the power of these banker crooks to manipulate price by supplying massive amounts of short paper.
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 301.43 tonnes for a loss of 1 1/2 tonnes over that period
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In silver, the total open interest ROSE BY 1273 contracts UP to 213,146, AND STILL CLOSE TO AN ALL TIME RECORD. THE OI ROSE IN SYMPATHY TO THE PRICE OF SILVER RISING BY 21 CENTS IN YESTERDAY’S TRADING. In ounces, the OI is still represented by just over 1 BILLION oz i.e. 1.066 BILLION TO BE EXACT or 152% of annual global silver production (ex Russia &ex China).
In silver we had 216 notices served upon for 1,080,000 oz.
In gold, the total comex gold ROSE BY 1821 contracts despite gold’s FALL in price YESTERDAY to the tune of $1.60. The total gold OI stands at 657,776 contracts, A NEW ALL TIME RECORD SET TODAY: (jULY 12: 657,776)
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With respect to our two criminal funds, the GLD and the SLV:
GLD
Surprisingly, we had no changes in gold inventory./
Total gold inventory rest tonight at: 981.20 tonnes
SLV
Not surprisingly we had a huge addition, a deposit of 1.94 million oz into the SILVER INVENTORY TO THE SLV (it was a paper addition)
Inventory rests at 343.393 million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on July 12, 2016.

Spot The Year Of The Tax Inversion

Here – in one simple chart – is why Ireland is keeping very quite in the international debate over tax inversions.
The Irish economy grew over 26% in 2015, officials from the Central Statistics Office told a stunned room full of economists and reporters in Dublin on Tuesday. Previously, they had estimated growth of 7.8%…

This post was published at Zero Hedge on Jul 12, 2016.

The “Mystery” Of Who Is Pushing Stocks To All Time Highs Has Been Solved

One conundrum stumping investors in recent months has been how, with investors pulling money out of equity funds (at last check for 17 consecutive weeks) at a pace that suggests a full-on flight to safety, as can be seen in the chart below which shows record fund outflows in the first half of the year – the fastest pace of withdrawals for any first half on record…

This post was published at Zero Hedge on Jul 12, 2016.

SYRIA SHOCKER: John Kerry Torpedoes US ‘Moderate Rebel’ Narrative

‘Thank you very much. It’s a great honor and pleasure for us to have a man I’ve admired – most of us have admired – for many years, a man who – U. S. Naval, served in Vietnam, won the Purple Heart – I mean, three Purple Hearts, the bronze medal, the silver medal, has been a senator, candidate for president, and now our Secretary of State.’
These accolades were the opening salvo from Walter Isaacson in a conversation with US Secretary of State, John Kerry. A conversation held in front of an audience, June 28th 2016, at the Aspen Ideas Festival held in Colorado and recorded by the US State Department.
What John Kerry said in this conversation effectively demolishes the foundations of US ‘regime change’ policy in Syria and its support of the so called ‘moderate rebels’.
Background on Ahrar al Sham ~ The Favourite US Terrorists

Many of you may remember the 21st Century article US Smoke and Mirrors to Protect Terrorist Proxies in Syria. In this article Yalla la Barra explained the US State Department policy of shielding their ‘moderate rebel’ gangs under the Ahrar al Sham umbrella which served to detach them from the Al Nusra/Al Qaeda body of terrorism and to designate them a branch of US friendly ‘opposition’ conveniently ‘intermingled’ with Al Nusra thus prohibiting Russian targeting of Al Nusra just in case they hit one of the moderates in the process.

This post was published at 21st Century Wire on JULY 12, 2016.

Those That Wanted To Get Prepared Have Already Gotten Prepared By Now

Is the time for warning people to prepare for what is ahead coming to an end? For years, bold men and women all over America have been sounding the alarm and warning people to get prepared physically, financially, mentally, emotionally and spiritually for the great storm that is rapidly approaching. Personally, I have written more than 2,500 articles on my primary two websites combined, and so nobody can accuse me of not blowing the trumpet. It has gotten to the point that sometimes I am even tired of listening to myself warn the people. But now we are shifting into a new phase.
The other day I was reflecting on some of the things that I have been hearing lately. Sales of emergency food and supplies are way down across the entire industry. Many organizations and websites that have been instrumental in sounding the alarm for a long time are really struggling right now. On my websites, traffic has hit a bit of a plateau after experiencing a tremendous surge late last year. Overall, ‘prepping’ was very hot just a few years ago, and at one time it was estimated that there were approximately three million ‘preppers’ in the United States. But these days there seems to be a tremendous amount of apathy out there.
As I reflected on all of this, I came to one inescapable conclusion.
Those that wanted to get prepared have already gotten prepared by now, and those that did not want to get prepared are not likely to do so any time soon.
I personally know a lot of people that are very, very prepared and have been for a long time. Yes, there is still a small minority of people out there that only recently woke up and started prepping, but overall most of the preparation that people wanted to do has already been completed. And for those that have not done anything to prepare, you could argue with them until the moon turns to cheese and they still won’t take any action.
At this point the die has been cast. Most of those that felt that they should prepare have already prepared. Most of those that felt that they should repent have already repented. Most of those that felt that they should warn America have already sounded the alarm.
So now all that is left is to wait for the shaking to begin.

This post was published at The Economic Collapse Blog on July 11th, 2016.

Commodity Chaos

After yesterday’s tumble it seems only apprproate that WTI Crude would suddenly be panic bid above $46.50 – the biggest move in 3 months (along with exuberant “well growth is coming thanks to Japan right” strength in copper). At the same time, gold is getting monkey-hammered (as silver flatlines)
Wuth the dollar flat, commodities are all over the place…
And across the market, GBP strength, JPY weakness, and Crude strength is supporting vertical no volume ramps in stocks…

This post was published at Zero Hedge on Jul 12, 2016.

Gold and Silver Market Morning: July-12-2016 – Gold and silver prices waiting for the Bank of England!

Gold Today -Gold closed in New York at $1,354.60 on Monday after Friday’s close at $1,367.20. In Asia the gold price also fell further as you can see below
– The $: fell to $1.1100 down from $1.1048.
– The dollar index fell to 96.12 from 96.60 Monday.
– The Yen was weaker at 103.44 from Monday’s 102.48 against the dollar.
– The Yuan was slightly weaker at 6.6859 from 6.6902 Monday.
– The Pound Sterling was stronger at $1.3158 up from Monday’s $1.2942 but with more falls expected this Thursday as the B. of E. adds further easing of interest rates! Or has this been discounted already?
Yuan Gold Fix
The Chinese gold market is pulling back with New York and London ahead of the Bank of England’s Thursday’s announcement.
LBMA price setting: $1,352.85 down from Monday 11th July’s$1,358.25.
The gold price in the euro was set at 1,218.78 down 10.63 from Monday’s1,229.41.

This post was published at GoldSeek on 12 July 2016.