The Economy Is Doomed, Helicopter Money Will Not Work Because It Was Tested In 2008 – Episode 1028

The following video was published by X22Report on Jul 21, 2016
UK retail sales drop in June. Turkey’s credit rating is cut. Amazon getting into the student loans to pump up the bubble. Another indicator that the economy is declining, art sales plummet. Existing home sales slow dramatically. Philly Fed declines. Baltic Dry Index begins to decline again. S&P sees a huge crisis headed our way. Helicopter money has been tested back in 2008 to push off the recession, but it failed and the people did not boost the economy. US trying to put the UK on the fast track to get the trade deal signed.

What Will It Take For Geopolitical Shocks To Worry Investors?

It’s not just Invesco that is confused by the market’s complacency, Bloomberg notes that global markets are showing a surprising calm as investors struggle to quantify macro risks, taking divergent approaches to portfolio allocations.
While investors cite geopolitical risks as a chief concern and events like Turkey’s failed coup highlight the dangers, Bloomberg notes there is little evidence that people are bailing on risky investments.

This post was published at Zero Hedge on Jul 21, 2016.

Look Who’s Frantically Demanding that Taxpayers Stop Italy’s Bank Meltdown

It was a perfect gift to a desperate market. All that was needed was a gentle hint that Italy’s troubled banks and their bondholders might not be hung out to dry. A ‘public backstop’ for Italy’s weakest lenders would be a ‘very useful’ measure in these ‘exceptional times,’ ECB President Mario Draghi said.
Most Italian and European bank stocks surged.
The ECB is the second member of the institutional triad formerly known as the Troika to have called for a taxpayer funded bailout of Italy’s banking system. Earlier this month the IMF used its article IV consultation – an annual economic and financial health check – to warn of ‘global spillovers’ from a full-blown Italian banking crisis, ‘given Italy’s systemic weight.’
Desperate times call for ‘significant measures,’ says IMF economist Juan Toro. These measures include a taxpayer-funded state intervention, a practice that was supposed to have been consigned to the annals of history by Europe’s enactment of new bail-in rules on Jan 1, 2016. The idea behind the new legislation was simple: never again would taxpayers be left exclusively paying to bail out bondholders of Europe’s insolvent banks.
But even before the ink has dried, the new rules are about to be broken, or at least bent beyond recognition. Apparently this is necessary for two main reasons:

This post was published at Wolf Street by Don Quijones ‘ July 21, 2016.

Don’t Believe the Hype: The Big Banks Are Still a Risky Investment

When America’s ‘Too Big to Fail’ banks released Q1 2016 earnings, I told you that all was not what it seemed, and that rosy-seeming earnings were actually a huge red flag.
Judging by the headline financial news these days, however, thebig banksare back. They’ve almost all reported earnings beats this quarter, some by a good amount, and analysts are saying the hard row’s been hoed and they’ve planted fresh seeds. And when you look at their stock prices, some of the TBTF banks look like downright bargains.
But price doesn’t tell you anything. There’s a lot more to look at with the big banks.
And if you look really closely, well, you won’t believe what you really see…

This post was published at Wall Street Examiner on July 21, 2016.

Memo To GOP: Stop Bleeding Red Ink, Make America Sustainable Again

Sometimes, some days, reality is more bizarre than fiction.
After enduring months of the ‘Hedi Cruz Goldman Sachs’ argument from the Trumptards, here comes their boy Donald Trump with his announced nominee for U. S. Secretary of the Treasury and hoo-boy is it a beaut.
From Fortune Magazine, yesterday:
Here Is Who Donald Trump Wants for Treasury Secretary

This post was published at John Galt Fla on July 21, 2016.

Dead Unicorn Bounce? Theranos Hires “Compliance” Execs Following CEO’s 2-Year Ban

Sometimes you have to know when to “stay down.” Having been barred from owning or operating a lab for at least two years, Elizabeth Holmes, Theranos founder and CEO, said that:
…the company would be “shutting down and subsequently rebuilding the lab from the ground up, rebuilding quality systems, adding highly experienced leadership, personnel and experts, and implementing enhanced quality and training procedures.” And it appears, as Reuters reports, that is what they are doing as desperate investors maintain the dream despite its total crushing by regulatory authorities and any reality checks…

This post was published at Zero Hedge on Jul 21, 2016.


Gold:1330.50 UP $11.70
Silver 19.78 UP 20 cents
In the access market 5:15 pm
Gold: 1331.10
Silver: 19.80
For the July gold contract month, we had a huge 739 notices served upon for 73,900 ounces. The total number of notices filed so far for delivery: 6068 for 606,800 oz or 18.874 tonnes
In silver we had 28 notices served upon for 140,000 oz. The total number of notices filed so far this month for delivery: 2134 for 10,670,000 oz
Silver today at the comex recorded an all time record for open interest and yet the price is 29 dollars cheaper. It defies commodity law!
Last night, I was up again in the early hours when I saw the bankers continue with their raid orchestrated by our crooked banks yesterday. I took a look at the daily bulletin which is an estimated OI and then I knew the reason for the raid:
the high open interest for silver (and a record high) despite silver being 29 dollars cheaper when it had its former high OI in 2011. (Oi 220,587)
the front July contract month in gold saw a huge gain in an amount standing. Now we have close to 19 tonnes standing in this a non active month. It sure looks like August will be exciting.
We are now entering options expiry month for gold and silver:
The comex options expiry on Tuesday July 26.
The OTC options in London expire Friday at noon July 29.
So expect downward drafts in gold and silver trading until both of these contracts expire.
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 311.801 tonnes for a gain of 9 tonnes over that period
In silver, the total open interest ROSE BY 1,391 contracts UP to 220,587, AND A NEW ALL TIME RECORD. THE OI ROSE IN CONTRAST TO THE PRICE OF SILVER WHICH FELL BY 40 CENTS IN YESTERDAY’S TRADING. In ounces, the OI is still represented by just over 1 BILLION oz i.e. 1.102 BILLION TO BE EXACT or 158% of annual global silver production (ex Russia &ex China).
In silver we had 38 notices served upon for 140,000 oz.
In gold, the total comex gold FELL BY 2,990 contracts as gold FELL in price YESTERDAY to the tune of $12.70. The total gold OI stands at 614,079 contracts.
With respect to our two criminal funds, the GLD and the SLV:
we had a large withdrawal in gold inventory. to the tune of 2.08 tonnes/
Total gold inventory rest tonight at: 963.14 tonnes
we had no changes into the SILVER INVENTORY TO THE SLV
Inventory rests at 348.580 million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on July 21, 2016.

How the Oil Bust is Crushing a Downtown of Office Towers

Amid record vacancies, Class A rental rates plunge 56%.
Commercial real estate, particularly office space, in Calgary, Alberta, the epicenter of the Canadian oil bust with 1.2 million people, is collapsing at a breath-taking rate. As companies in the oil & gas sector have downsized or gone out of business, 25,000 people who used to work downtown have lost their jobs.
Office vacancy rates have soared to 22%, the highest on record, according to the second quarter report by commercial real estate services firm CBRE.
Vacancy for Class AA office space reached 17.6%, and for Class A space 18.9%. Older buildings are getting clocked: Vacancy rates for Class B buildings soared to 32% and for Class C buildings to 28%.
It’s going to get worse: three towers with 2.3 million sq. ft. of office space are under construction in downtown and will be completed by 2018. Of this space, about 1 million sq. ft. is not leased. And even some of the pre-leased space may end up on the sublease market.
Colliers International in Calgary estimates that the overall downtown vacancy rate will approach 26% by year-end 2018. How optimistic is this estimate? A year ago, we reported that Colliers had estimated that the vacancy rate would hit 17.5% by year-end 2018, with the warning that ‘this may even be an optimistic forecast.’ It sure was.

This post was published at Wolf Street by Wolf Richter ‘ July 21, 2016.

Gold Daily and Silver Weekly Charts – Comex Options Expiry and FOMC Next Week

“What was scattered gathers.
What was gathered blows away.’
And so we did a bungee jump over the past two days, a trading phenomenon colloquially known hereabouts as ‘shenanigans.’
These jokers are so obvious and tiresome since the regulators have been put to bed. At least they are not too lazy to steal.
Intraday there was a simple performance comparison of the two gold funds OUNZ and PHYS.
Next week could be a bit of a challenge for the precious metals, as we have not only a relatively important expiration on the Comex on Tuesday the 26th, but on the next day on Wednesday the 27th the FOMC will be revealing their decision on interest rates.
I am not going to speculate on which way I think the punters and wiseguys will take the markets, but it is likely to be an up and down, or a down and up, or perhaps even a down and down with the up to follow later on. Or as I suspect we will be seeing sometime this year, just an ‘up, up, and away.’
I do not wish to encourage anyone to trade any of these jiggered markets on the short term, even those who at least theoretically prefer their markets on the wild and underregulated side, with a charming trust in the natural goodness and rationality of some of the worst moral actors you will ever find.
And if you are determined to trade these markets short term, then just put your big boy pants on and have at it, as you certainly do not need any help from me.
Longer term, dull reality intrudes. even on the half-fevered monetary dreamstates of statists and thieves.

This post was published at Jesses Crossroads Cafe on 21 JULY 2016.

Energy Giant Schlumberger Fires Another 8,000 As “Market Conditions Worsened” In Q2

Last quarter, Paal Kibsgaard, the Chairman and Chief Executive Officer the world’s largest oilfield services company, Schlumberger warned that “the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis. This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity.” He then promptly fired 8,000 workers in the first quarter, and said that he is not expecting a meaningful recovery in the company’s activity until sometime next year.
He was right, because while the oil industry was touted as experiencing a substantial rebound since then, this appears to not have been the case for the energy services giant. This was confirmed in the results reported moments ago by Schlumberger which announced another unexpected loss or $2.16 billion, or $1.56 cents a share, compared with a profit of $1.12 billion, or 88 cents, a year earlier.
As Bloomberg notes, as the downturn dragged on, executives at the world’s largest oilfield services provider have had to push back their expectations for an improvement in drilling and fracking work, with crude prices remaining more than 50 percent lower than their peak in 2014.
As a result, the tone of Paal Kibsgaard this quarter was even gloomier than in Q1:

This post was published at Zero Hedge on Jul 21, 2016.

“Are Stocks Cheap Or Expensive” – Here Are 20 Answers

“Is the S&P 500 cheap or expensive” – that is the question every trader has to answer every day.
It is also the question BofA’s Savita Subramanian addresses today in a report which deconstructs the “Fed model”, or the goalseeked analysis which justifies high stock multiples (and prices) as long as bond yields are low (contrary to virtually all other valuation models). This is what she says:
As equity markets make new highs, the bulls are grasping for new (or very old) ways to justify the rally. The latest to garner attention is the Fed model, which compares the earnings yield on stocks with bond yields. There have been many iterations of the Fed model over the years, but they all come to the same conclusion today: stocks are cheap relative to bonds. The bulls argue that the spread between bond yields and the earnings yield will normalize as equity valuations re-rate higher. But this is just one of the ways that the relationship can mean-revert – which it has failed to do over the last decade. The other two may not be as bullish – the spread can mean-revert if earnings were to collapse, or if interest rates were to spike. Thus, the Fed model may not be as clear cut a buy signal for equities. And critically, our analysis suggests that the various forms of the Fed model have far less predictive power than simply using a PE ratio.

This post was published at Zero Hedge on Jul 21, 2016.

Boehner On Ted Cruz: “Lucifer Is Back”

@JakeSherman @SpeakerBoehner's remark last night after Cruz speech: "Lucifer is back."
— David Schnittger (@OhSchnitt) July 21, 2016

Back on April 28, we learned in rather comical terms that John Boehner is not a fan of Ted Cruz. At all. So much so that according to NBC the former Republican House Speaker told an audience at Stanford University that the Texas senator is “Lucifer in the flesh” and a “miserable son of a bitch.”
Overnight, the former House Speaker, a stalwart of the old GOP establishment, chimed in again in the aftermath of the Cruz fiasco and summed up his reaction to Cruz’s controversial RNC speech in three words, according to a former aide: “Lucifer is back.”

This post was published at Zero Hedge on Jul 21, 2016.

SP 500 and NDX Futures Daily Charts – How Are the Mighty Fallen

‘Empires die, like all of us dancers in the strobe lit dark.
See how the light needs shadows.’
David Mitchell
Stocks were a bit off today, as the risk on stampede cooled off a bit, as the bulls began to dwindle away for the long Summer weekend that they desire.
VIX ticked up a bit, as the buyers looked around themselves and saw how far they had come, and heard the snickers of the pros as they helped them to mount ever higher.
Tomorrow will likely be a sleepier day, with the adults gone by noon if not before.

This post was published at Jesses Crossroads Cafe on 21 JULY 2016.


Other than getting two weeks of training in how to subjugate and treat innocent citizens like terrorist slaves at airports for a price tag of billions of taxpayer dollars, what does the TSA do again?
Via Tech Dirt:
The TSA is a multibillion dollar agency with nearly zero redeemable qualities. It can only act in hindsight, does almost nothing to make traveling safer, and seemingly devotes most of its screening efforts totoddlers, cancer patients, and ensuring carry-on liquids do not exceed three ounces.
What it lacks in competency, it makes up in misconduct. Lines at security checkpoints have slowed to a crawl. Making it through the tedious, invasive process sometimes means inadvertently ‘donating’ expensive electronics to sticky-fingered agents. The TSA’s morale is generally on par with Congress’ approval rates. And, when it’s all said and done, the people hired to protect travelers just plain suck at their job.

This post was published at The Daily Sheeple on JULY 21, 2016.

The Cruz Fallout: “An Extraordinary Scene The Like Of Which Has Not Been Seen In A Generation”

In some ways, the scandal that took place last night at the Republican national convention, was not a surprise.
Reportedly those who mattered, knew in advance what was coming. As Bloomberg writes, earlier in the day, Trump campaign chairman Paul Manafort said he would be personally viewing the Cruz speech in advance. “I’m comfortable that Senator Cruz is going to talk about his vision for America,” Manafort said. “He’ll give a sign of where he is on Donald Trump that will be pleasing to the Trump campaign and to Republicans.” Cruz told Trump two days ago he wouldn’t be endorsing him Wednesday night, and that the Trump folks knew what to expect in his speech, according to Cruz strategist Jason Johnson.
This goes to a question Bloomberg posed shortly after the speech: “the problem for Trump wasn’t just the lack of an endorsement from Cruz. The speech raised questions about why Trump — who has campaigned on his extraordinary negotiating skills — allowed Cruz to take stage.”
“Wow, Ted Cruz got booed off the stage, didn’t honor the pledge! I saw his speech two hours early but let him speak anyway. No big deal!” Trump said late Wednesday on Twitter.
However, for many when Ted Cruz decided to snub Donald Trump
with his refusal to officially endorse the presidentical candidate, it was a stunning surprise, and led the
crowd in Cleveland to erupt in a chorus of boos while the political media exploded.

This post was published at Zero Hedge on Jul 21, 2016.

State Department Warns Americans Of “Potential, Imminent Threat” In Saudi Arabia

US Citizens in #Turkey: Threat of terrorist activity remains elevated. Remain vigilant & be aware of local events. — Travel – State Dept (@TravelGov) July 21, 2016

Back in April, the US quietly warned citizens of “credible threats” to tourist areas in Turkey, particularly in Istanbul and the southern resort city of Antalya. In retrospect, one historic suicide bombing at the local airport, and one failed and/or staged coup later, the warning had been spot on. Which is why while traditionally official warnings of upcoming threats to US citizens around the globe have been generally ignored, this time it may be prudent to pay attention.
Moments ago, the US State Department warned Americans in Saudi Arabia about a ‘potential, imminent threat against U. S. citizens’ Wednesday and urged to travel with caution. The agency tweeted out a brief statement titled ‘Reports of a potential imminent threat’ in Jeddah.

This post was published at Zero Hedge on Jul 21, 2016.

Americans Stunned As Stocks… Fall

Seemed appropriate…
As Ryan Detrick (@RyanDetrick) noted, The Dow is up nine straight days. Going back 20 years this has happened only twice. Both times it was up day 10… So today is a historic #fail… Leaving Dow Futs at crucial support… with VIX surging back to a shocking 13 level before it was quickly squelched into the close… “off the lows”

This post was published at Zero Hedge on Jul 21, 2016.

Draghi Has Lost It Completely

The European Central Bank (ECB) announced it will decide in the coming months whether monetary policy should be eased any further. Clearly, Draghi is completely losing control for he cannot entertain the remote possibility that negative interest rates will only cause hoarding and capital flight, and not stimulation. People only borrow when they see an opportunity. They do not borrow like governments with no rational thought whatsoever.
In the coming months, Draghi said a better assessment of the situation would become possible.

This post was published at Armstrong Economics on Jul 21, 2016.

Gold and Silver Market Morning: July-21-2016 — Gold and silver prices still base building!

Gold Today -Gold closed in New York at $1,319.30 on Wednesday after Tuesday’s close at $1,332.30.
– The $: rose to $1.1029 up from $1.1002.
– The dollar index fell to 97.00 from 97.12 Wednesday.
– The Yen was slightly weaker at 107.02 from Wednesday’s 106.48 against the dollar.
– The Yuan was stronger at 6.6742 from 6.6785 Wednesday.
– The Pound Sterling was stronger at $1.3254 down from Wednesday’s$1.3178.
Yuan Gold Fix
Shanghai prices were in line with those of New York. Demand in China is rising with these lower prices. The media has labeled retail gold buyers as ‘Mammas’, pointing to the conservative older ladies who invest for long term financial security. These investors likely experienced the days of hyperinflation, or at least their own mothers related tales from those days.
We find it extraordinary that the media likes to give demeaning names to those who distrust the global financial system and favor gold itself. We have found such investors just as intelligent and perceptive as traders who go for short term profits. Fortunately few precious metal investors are affected by such puerile name calling.

This post was published at GoldSeek on 21 July 2016.