I shall now count from one to ten…

July 2016 – You are entering a state of deep sleep. You will be unable to awake from this sleep no matter how much you try to or how much you are disturbed by the images you see. In this deep state of sleep, the state has ultimate power over the individual. It will program and influence your mind. No one will care what you think or why. This state will decide your identity. It will dictate your choices. It will subject you to its doctrine. You cannot alter your fate or resist the will of the state. It is infallible. It is in control. It writes the rules that become the program for your sleep and you cannot alter, hack, or erase that program from your mind. You will believe the lies of the State as truth. The State will monitor your every move, see every word you type, and will hear every word you utter. It will control your dreams and it will interpret your nightmares. You will be told what to think and when to think. And whether or not you disagree with the dogmas and policies of this state; you will be made to obey them. You will harbor no disparaging thoughts or ill will against Big Brother or the State in which you find yourself asleep. Welcome to Europa.

This post was published at UtopiatheCollapse on July 30, 2016.

Did Germany Just Blink?

So who’s going to bail out the banks?
A most unusual thing happened in Europe this week. In a rare climb down, Angela Merkel’s government decided not to push the European Commission to impose a punitive fine on Portugal and Spain for their persistent failure to comply with their budget deficit targets, leading one Eurogroup minister to declare that the euro zone’s Stability Pact is ‘dead.’
Of Europe’s 27 commissioners, only four voted in favor of applying the fines; the other 23 voted against. According to El Pas, the deciding factor in the decision was an impromptu phone call from German finance minister Wolfgang Schuble to some of the more conservative commissioners, giving them the green light to forego the fine.

This post was published at Wolf Street by Don Quijones ‘ July 30, 2016.

UBS Debunks “Strong Consumer” Farce Saying Consumer Credit Cyle Is In “Later Innings”

In an environment where the Fed recently described household spending as “growing strongly,” we have often questioned why consumer delinquencies would continue to grow (see “Subprime Auto Delinquencies Soar Past Crisis Levels, Now Highest In 20 Years” and “Subprime Snaps: Largest US Subprime Auto Lender Delays Earnings Due To “Accounting Matters”“) if household financial conditions were truly improving. It turns out that UBS pondered the same question and agrees that deteriorating lending standards just might have something to do with it. Matthew Mish of UBS, recently updated his strategy piece on the health of the US consumer and the results are less than stellar with Mish concluding that consumer incomes are not expanding in line with consumer credit and therefore “consumer delinquencies…will not fall in coming quarters, consistent with our broader thesis that the credit cycle is in the later innings”. Mish found a growing divide between consumers that are financially sound and those at the lower end of the earnings spectrum where financial conditions are deteriorating. So while aggregate data may suggest improvement in the consumer overall it’s unlikely to impact deteriorating delinquency rates on consumer loans. Per Matthew Mish of UBS:
Our analysis of the consumer lending environment and stressed US consumer fundamentals seems to support the thesis that while lending is extending to riskier consumers, the finances of those consumers are not materially improving. The recipe is likely to result in consumer delinquencies that will not fall in coming quarters, consistent with our broader thesis that the credit cycle is in the later innings as ebbing fears about a corporate earnings recession are offset by rising concerns over higher delinquencies and tighter credit availability.

This post was published at Zero Hedge on Jul 30, 2016.

Michael Bloomberg Calls Trump a ‘Dangerous Demagogue’

Former Mayor of New York City Michael Bloomberg had the audacity to deliver a speech at the Democratic Convention saying, ‘There are times when I disagree with Hillary Clinton. But let me tell you, whatever our disagreements may be, I’ve come here to say: We must put them aside for the good of our country. And we must unite around the candidate who can defeat a dangerous demagogue.’ Bloomberg began at Salomon Brothers, the notorious firm that was shut down for manipulating the US government bond auctions. It was Bloomberg who defended Wall Street against the protest ‘Occupy Wall Street’ and arrested people for exercising their First Amendment Rights.

This post was published at Armstrong Economics on Jul 30, 2016.

Gold Passes A Major Milestone

Submitted by Brandon Ferro of Only Prices Matter
Gold Now in a Sustained, Structural Bull Market; On Average, History Suggests ~175% Incremental Upside
The last time we discussed gold on the site was a few weeks back in this post; therein we suggested a break-down in USDZAR was at hand and that should history hold, it would help propel and/or coincide with additional upside in the metal.
However, the above was merely a tactical, nearer-term call.
Strategically, it’s been even longer since we updated our longer-term framework for gold. In fact, it’s been three months since we did that in this post. In that May piece we suggested the metal continued to track favorably vs. our bullish expectations, but in the near-term it faced a major test having rallied nearly 25% off its Dec-15 low, a historical demarcation point whereby cyclical retracement rallies were either snuffed out with a resumption of a secular bear beginning afresh, or, the same moves continued higher, indicative of a new secular bull being underway.

This post was published at Zero Hedge on Jul 30, 2016.

This Canadian Oil ‘Ghost Town’ Is For Sale

In a shocking example of the fallout from low oil prices coupled with years of easy-money-enabled malinvestment, the collapse of Canada’s non-conventional oil production has forced a northern Alberta oil-boom-town to be put up for auction including 1200 person accomodation work-camp, hospital, gym, running track, and waste-water treatment plant.

This post was published at Zero Hedge on Jul 30, 2016.

Ireland Jails 3 Top Bankers Over 2008 Collapse… Instead Of Bailing Them Out

Submitted by Carey Wedler via TheAntiMedia.org,
‘By means that could be termed dishonest, deceitful and corrupt, they manufactured 7.2 billion euros in deposits by obvious sham transactions,’ Judge Martin Nolan of Ireland said as he convicted three top bankers on Friday for their role in the 2008 financial crisis. They are among the first in the world to be sent to prison for their involvement in the global meltdown eight years ago.
The longest-ever criminal trial in Ireland lasted 74 days and led to convictions for former Irish Life and Permanent Bank Chief Executive Denis Casey; former finance director at the failed Anglo Irish Bank, Willie McAteer; and former head of capital markets at the Anglo Irish Bank, John Bowe. They received sentences ranging between two-and-a-half to three-and-a-half years.
As light as those sentences may seem considering the dire effect bankers’ actions had on the Irish economy, U. S. and English bankers have evaded convictions altogether. Though banks in those countries have since paid outbillions of dollars in settlements to regulators for their role in the 2008 crash, no one from those companies has been sentenced to prison.

This post was published at Zero Hedge on Jul 30, 2016.

The Non-Consumer Economy Is Now In A Recession, Just As Spending Is Set For A “Sharp Pullback”

While yesterday’s GDP report was an undisputed disappointment, printing at 1.2% or less than half the 2.5% expected following dramatic historical data revisions, an even more troubling finding emerged when looking at the annual growth rate of GDP. This is how Deutsche Bank’s Dominic Konstam summarized what we showed yesterday:
The latest GDP release favors our hypothesis of an imminent endogenous labor market slowdown over a more optimistic scenario in which productivity will replace employment as the engine for growth. With real GDP growing at just 1.2%, there is little evidence that productivity is ready to do the heavy lifting. We are particularly concerned because annual nominal growth has slowed to 2.4%, essentially a cyclical trough. He was looking at the following chart (which as the BEA admitted yesterday, may be revised even lower in coming quarters).

This post was published at Zero Hedge on Jul 30, 2016.

If You’re At All Exposed to Muni Bonds, You Need to Read This

This is a syndicated repost courtesy of Economy and Markets. To view original, click here. Reposted with permission.
The housing bust was awful, particularly in Florida and other ‘sand states.’ As the economy slowed, consumers lost their jobs, and when they couldn’t pay their mortgages, they then lost their homes.
Even though that wrenching period happened almost a decade ago, it will live in our memories for years to come. I can recall much of the pain, but also other aspects of the moment. Some people were desperate for the relief that came their way; others were using it as cover to game the system.
We’re about to see the same thing happen again, but this time on a much larger scale. And the sucker on the other end of the line won’t be a bank or faceless mortgage company, it will be individual investors, and once again they’ll have government ‘help’ to blame.

This post was published at Wall Street Examiner by Rodney Johnson ‘ July 29, 2016.

Steve Wynn: Trump Vs Hillary Is A Distraction From The Real Problem, Which Ends With “Wheelbarrows Full Of Money”

The traditionally outspoken Steve Wynn continued doing what he does best during the quarterly WYNN earnings call, which is rage against what he sees as the problem du jour in the US economy. Recall that last quarter he set his sight on the manipulated US stock market, and HFT traders in particular:
“The other day I was watching the stock open up, and it went up on share volumes of a few thousand shares. I mean, every trade was a tick up. That’s not the way it should operate in an honestly or intelligently run exchange. But that’s the thing, all those guys sold their dark pools and their order flow and the positioning on the floors of the servers to the HFTs. And it’s made a couple of guys that I’m friendly with very rich because they are high-frequency traders. But I don’t respect the activity, and I’m severely critical of it. And don’t mind saying so, either.” This time, during the July 28 Q2 earnings call, the 74 year old billionaire chimed in on the most important topic for the US economy over the next 4 months: the presidential election, and – in typical brutally frank fashion – he cuts right to the chase. Here is the key segment, with our highlights, responding to a question on what to expect from the US election.

This post was published at Zero Hedge on Jul 30, 2016.

Elizabeth Warren’s False Reality

Sen. Elizabeth Warren claims that Trump wants everything to crash so he can buy up real estate on the cheap. Of course, to do that one must have cash and confidence that it is a bottom. It is very rare to find someone who will just rush in and buy in a falling market. You could also say that Trump wants everything to boom so he can sell his holding at a profit and retire.
The Democrats did nothing but bash Trump at the convention instead of offering what they will really do or explaining how they will accomplish such promises. Warren’s speech desperately attacked Trump at the Democratic Convention, which was designed to convince Americans that Trump is no friend of the average person. She said Democrats fought to get health insurance for more Americans, refinance student loans, end tax breaks for corporations that ship jobs overseas, raise the minimum wage, and create a strong consumer agency ‘so big banks can’t cheat people.’

This post was published at Armstrong Economics on Jul 30, 2016.


Gold:1349.00 up $16.70
Silver 20.31 up 14 cents
In the access market 5:15 pm
Gold: 1351.00
Silver: 20.33
For the August gold contract month, we had a gigantic 5028 notices served upon for 502,800 ounces on first day notices. The total number of notices filed so far for delivery: 5058 for 502,800 oz or tonnes or 15.63 tonnes
In silver we had 3 notices served upon for 15,000 oz to finish the July contract month. The total number of notices filed so far this month for delivery: 2474 for 12,370,000 oz and that completes July.

This post was published at Harvey Organ Blog on July 30, 2016.

The Massive Prop Barely Holding up the US Economy Cracks

‘The so-called car recession’: Ford, AutoNation wave red flags
It was the second warning in two days: auto sales – last year one of the few booming sectors in the US economy – are exiting the freeway and turning south on a road full of potholes. And that would come at the worst possible time.
The debt-fueled growth of this economy is already fizzling. On Friday, first quarter GDP growth was revised down to 0.8% on an annualized basis. ‘Annualized’ means that if this awful pace continues, growth for the year will be 0.8%! Second quarter growth was a meager 1.2% annualized. For the first half, annualized growth amounts to 0.9%, the worst in four years.
Business investment in equipment and structures, residential investment, and government investment all declined. Trade added a smidgen. But the inventory draw-down we’ve warned about for over a year, given how business inventories have bloated to crisis levels, has arrived with a vengeance, slashing 1.2% from GDP growth.
What kept GDP growth from falling into a hole was a big bout of consumption (up 2.8%), led by debt-fueled consumer spending.

This post was published at Wolf Street on July 29, 2016.

Ireland jails bankers over 2008 financial meltdown

July 2016 – IRELAND – Three senior Irish bankers have been sentenced to between two and three-and-a-half years in prison for conspiring to defraud investors, the most prominent prosecution case arising from the 2008 banking crisis. The lack of convictions until now related to the crash has angered Irish taxpayers, who had to stump up 64 billion euros – almost 40 percent of annual economic output – after a property collapse forced the biggest state bank rescue in the euro zone.
The crash pushed Ireland into a three-year sovereign bailout in 2010 and the finance ministry said last month that it could take another 15 years to recover the funds pumped into the banks still operating. Former Irish Life and Permanent Chief Executive Denis Casey was sentenced to two years and nine months. Willie McAteer, former finance director at the failed Anglo Irish Bank, and John Bowe, its ex-head of capital markets, were given sentences of 42 months and 24 months respectively.

This post was published at UtopiatheCollapse on July 30, 2016.