Really? Good thing to know our Secretary of State, under which $6 billion dollars went missing and gads of classified emails were stored unprotected on private servers, may have never had security training.
They just… don’t know.
The only thing actually surprising about this is the fact that he didn’t just lie and say she did.

This post was published at The Daily Sheeple on SEPTEMBER 1, 2016.

How The Corporate Buyback Binge Blew Another Financial Bubble

Just over a year ago, Dr. John Hussman introduced a new way to value the broad stock market, total market cap of non financial U. S. corporations relative to their ‘gross value added.’ Essentially, it’s a more efficient version of the Buffett Yardstick which measures the total market cap of the U. S. stock market relative to GDP which is basically a price-to-sales ratio.
Hussman’s version is more efficient because it incorporates foreign revenues earned by domestic corporations. The major criticism of the Buffett yardstick is that it does not. (The greater efficiency of Hussman’s Market Cap to GVA measure is borne out in its greater negative correlation to future returns.) Currently, this measure shows stocks were only more highly valued than they are today back during the height of the dotcom mania.
One thing that has bothered me about Hussman’s measure, though, is that it doesn’t account for corporate debt levels. From an investment standpoint, I believe it is impossible to accurately value the equity of a company without also measuring the amount of leverage being employed in the business. By extension, the same should be true for the broad equity market, as well.
While the market cap of U. S. stocks has soared over the past seven years, companies have increasingly issued new debt in order to buy back stock. In fact, total nonfinancial debt relative to GVA has been hitting new all-time highs for quite some time now. In other words, nonfinancial corporations have never been more highly leveraged than they are today.

This post was published at Wall Street Examiner by Jesse Felder ‘ September 1, 2016.

Georgetown To Grant Admission Preference To Slave Descendants

Georgetown University President, John DeGioia, recently announced that the university will give “preference in admissions” to descendants of slaves formerly owned by the Maryland Jesuits as part of the school’s effort to “atone” for profiting from the sale of enslaved people. According to a report of a special “Working Group” of the university, two priests who served as president of the university back in 1838 orchestrated the sale of 272 people to pay off school debts. The slaves were apparently sent from Maryland to plantations in Louisiana.
DeGioia said the university will take steps to identify the descendants of the slaves and recruit them to the university. Might we also suggest the university post the “Offer” to the official Reparations marketplace (see “There Is Now A Marketplace For White People To Make Reparations Payments“).
The official report from the university includes the following details about the 1838 transaction in question:

This post was published at Zero Hedge on Sep 1, 2016.

A Simple Answer To The Tax Brouhaha

Want the simple answer to the tax brouhaha and similar related to Apple, along with other firms?
Want to, at the same time, resolve most (but not all) of the offshoring of production of goods?
It’s not hard to do.
Change US law so that in order to bring a suit in the United States court system related to copyright, patent or trademark infringement you must havesubstantially designed and built said thing in the United States, using legal US workers, including but not limited to actual assembly.
If not then you have to sue in wherever you did such work — you cannot sue in the United States.
Force Apple to litigate copying of their designs (or phones!) in China and I bet they get real interested in producing them in the United States.
That turns around and exposes them to taxation here as well.
Assuming you do this properly so as to make it impossible to evade the rule (that is, if you don’t build it here you can’t sue here) then…. Problem solved.

This post was published at Market-Ticker on 016-09-01.


Gold:1312.20 up $5.30
Silver 18.86 up 24 cents
In the access market 5:15 pm
Gold: 1313.80
Silver: 18.90
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 2 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds within 15 minutes of London’s first fix.
And now the fix recordings:
First the Shanghai fix Sept 1
Shanghai morning fix (10:15 pm est last night): $1313.81
(price in NY on access at the exact same time: $1310.84)
Shanghai afternoon fix: 2: 15 am est (second fix/early this morning):$1310.39
(New York price at the exact same time: $1308.00)
The two London fixes:
First fix:Sept 1 2016 am:$1305.70 (2 am est) vs Shanghai: 1310.39
Second fix: pm Sept 1:$1309.50 (10 am est) 1310.00 USA gold price at 10 am
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
The front September contract month we had a good sized 84 notices filed for 8400 oz
For the month of September we had a total of 277 notices filed for 1,385,000 oz
Let us have a look at the data for today.
In silver, the total open interest fell by 581 contracts down to 188,835. The open interest again fell as the silver price was up 4 cents in yesterday’s trading . In ounces, the OI is still represented by just LESS THAN 1 BILLION oz i.e. .942 BILLION TO BE EXACT or 135% of annual global silver production (ex Russia &ex China). the crooks are doing a great job fleecing unsuspecting longs
In silver we had 277 notice served upon for 1,385,000 oz
In gold, the total comex gold fell by 3,669 contracts as price of gold FELL BY $4.80 yesterday . The total gold OI stands at 554,729 contracts
With respect to our two criminal funds, the GLD and the SLV:
we had a huge withdrawal today at the GLD to the tune of 5.34 tonnes of gold
I would bet that this was a paper withdrawal and not real gold
Total gold inventory rest tonight at: 937.89 tonnes of gold
we had no changes with respect to inventory at the SLV / THE SLV Inventory rests at: 359.743million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on September 1, 2016.

Smith & Wesson Forecasts Record Quarterly Revenue As Earnings Soar 93%

Moments ago, America’s legendary gun maker Smith & Wesson reported Q1 earnings which, not surprisingly, beat estimate on the top and bottom line, reporting EPS of $0.62, far above the $0.53 expected, and 93% higher compared to a year earlier, on revenue of $207.1 million, also a significant beat to the $198 million expected, not to mention a whopping 40% higher Y/Y.
A delighted James Debney, the CEO of SWHC, said, “We are very pleased with our first quarter results, which exceeded our financial guidance. We believe that higher revenue was driven by strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System (NICS) as well as our own market share gains. During the quarter, we announced the acquisition of Taylor Brands and Crimson Trace, two accretive acquisitions, making strong in-roads on our strategy to become a leader in the market for shooting, hunting, and rugged outdoor enthusiasts. These acquisitions, which further expand our presence in the markets for outdoor products and accessories, were completed early in the second quarter. Based upon that timing, as well as our performance for the first quarter and our revised outlook for the remainder of fiscal 2017, we are raising our full year revenue and net income guidance.”
More importantly, SWHC just guided to what would be a new all time high in revenue, predicting a sasles range of $220-$230 for the coming quarter (compared to Wall Street estimates of $165.6 million) whose midpoint would make it the highest revenue quarter in company history. We are confident the company will easily surpass this internal guidance, especially thanks to the ongoing attempts by the president to implement gun control executive orders.

This post was published at Zero Hedge on Sep 1, 2016.

The 5,000-Year Government Debt Bubble (Should investors buy the most expensive bonds in recorded history?)

September 1, 2016
The Wall Street Journal posed this intriguing question: Should investors buy the most expensive bonds in recorded history?
Amazingly, governments have managed this feat even (low historic bond yields) as they have become more indebted and even as slow economic growth undermines their ability to repay. Such conditions normally suggest a less creditworthy borrower and therefore a higher interest rate to compensate investors for the risk. But sovereign debt has become more expensive. Governments have succeeded in making their bonds more expensive in part by printing money and buying the bonds themselves via their central banks. Commercial banks are all but required to buy them too.
Yes, the US Treasury bond bubble began in September 1981 when the 10 year Treasury yield peaked at 15,84%. The Fed Funds Target rate peaked at 20% in May 1981, And the bubble began its great inflation.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘.

China’s Monetary Ascension Is Paved with Gold

The world monetary order is changing. Slowly but steadily, global trade and currency markets are becoming less dollar-centric. Formerly marginal currencies such as the Chinese yuan now stand to become serious competitors to U. S. dollar dominance.
Could gold also begin to emerge as a leading currency in world trade? Over time, it certainly could. But the more immediate implications for gold’s monetary role center on its increasing accumulation by central banks such as China’s.
On October 1st, the Chinese yuan is slated to enter the International Monetary Fund’s Special Drawing Right (SDR) basket of top-tier currencies. It will share SDR status with the U. S. dollar, euro, British pound, and Japanese yen.
Before the yuan officially becomes an SDR currency, the World Bank intends sell $2.8 billion in SDR bonds in Chinese markets. The rollout of SDR bonds in China began August 31st. According to Reuters, China’s promotion of SDR bonds ‘is part of a wider push in China to… boost demand for Chinese yuan and diminish reliance on the U. S. dollar in global reserves.’
King Dollar won’t be dethroned overnight. But the place of prominence the U. S. dollar – more accurately called the Federal Reserve Note – enjoys as the world’s reserve currency will indeed diminish over time.

This post was published at GoldSeek on 1 September 2016.

Supply-Chain Contagion Arrives – “Global Trade” Roiled, Cargo-Owners Panic In Wake Of Hanjin Bankruptcy

When we reported on the stunning collapse of South Korea’s Hanjin Shipping, the country’s largest shipping firm and the world’s seventh-biggest container carrier, which earlier today was granted court receivership after losing the support of its banks, we speculated that “the global implications from the bankruptcy are unknown: if, as expected, the company’s ships remain “frozen” and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos.”
We did not have long to wait for the aftershocks to emerge. As we first reported last night, just hours after the insolvency news hit the tape, three Hanjin ships promptly found themselves stranded off the California coast, stuck – together with the hundreds of tons of cargo – in legal and financial limbo.
That was just the beginning and as Reuters updates this morning, more Hanjin vessels have been seized at Chinese ports, “further roiling the industry as freight rates jump and manufacturers scramble for alternatives.”

This post was published at Zero Hedge on Sep 1, 2016.

You Can Become a Goldman Sachs Partner for Just One Dollar (Here’s Why You Shouldn’t)

Goldman Sachs Group Inc. (NYSE: GS), the second-largest bank in America and frequent target of scorn at Wall Street Insights & Indictments, has launched a new venture.
Starting right now, for one measly dollar, you can partner with Goldman Sachs to make money.
It’s a safe bet, at least up to $250,000, so go ahead and get your tentacles on.
All you have to do is deposit a dollar in Goldman Sachs Bank USA – not by visiting a branch, because there aren’t any, but by going to and opening an account.
Goldman will pay you interest on your savings account well above the national average offered by other banks.
And it will use your money to make money for itself.
It’s a typical Goldman partnership with their customers – one for you, 10 for them.
How will Goldman make a ton of money off you? They’re starting another bank, an online lender they’re calling Marcus, and they’re going to use the savings you park in GSBank to fund loans made by Marcus.
Here’s how the game will work and why you might not want to deposit more than FDIC insurance will cover, just in case things go wrong (and if the past is any indication, they likely will).
Why the ‘Vampire Squid’ Needs Retail Deposits
Goldman Sachs wants – make that needs – to get into retail banking, meaning gathering deposits from Joe Six Pack and anybody else who wants the cache of having an account with Wall Street’s bad boys, infamously described by Rolling Stonemagazine’s Matt Taibbi as a ‘great vampire squidwrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.’

This post was published at Wall Street Examiner by Shah Gilani ‘ September 1, 2016.

Why I’m sending Janet Yellen a fruit basket

Tulips aren’t native to Holland.
The first Tulips were brought over from Istanbul (then known as Constantinople) by a horticulturalist named Carolus Clusius in 1593.
But the scent, shape, and rarity of the flower soon caught on and quickly became a status symbol among wealthy Dutch residents.
As with any popular commodity, the price started to rise, giving way to all-out ‘Tulip Mania’ in Holland during the 1620s and 1630s, during which rare tulip bulbs could easily sell for thousands of dollars in today’s money.
It seems extraordinary that anyone would pay so much for a tulip.
But I often think the same about so many assets across our modern financial system.
Consider Uber, the ride-sharing pioneer.
I like Uber and use it myself occasionally. But I’m astounded that people pay so much for shares of this privately-held company.
Based on financial results leaked last week, Uber lost at least $1.27 billion in the first half of 2016 alone. And they’ve lost roughly $4 billion in their seven-year history.
Now that is truly impressive. It’s -very- hard to lose so much money so quickly.
Uber is even losing money in the United States, its most developed market.

This post was published at Sovereign Man on September 1, 2016.

“Death, Taxes, & A Disappointing August Jobs Data” – Why Tomorrow’s Payroll Print Will Be A Farce

As the world awaits tomorrow’s “most important jobs data ever” on the basis that it alone will decide the path of The Fed’s data-dependent rate decisions and thus the tightening of financial conditions across global markets, there is one chart that everyone has to see…
August NFPs have been weaker than consensus expectations in each of the last 5 years and in 14 of the last 18 years of available data.

This post was published at Zero Hedge on Sep 1, 2016.

SP 500 and NDX Futures Daily Charts – Pop R’ Drop

Just to net this all out for you, the equity markets have been in an extraordinarily tight trading range since the post-Brexit rally that has stalled out, or roughly the middle of July.
They are ranging back and forth, on fairly light volumes, trying to decide which way to go.
Tomorrow we will be seeing one of the more important Non-Farm Payrolls reports, because of the implications that it might have for the Fed’s next move on interest rates in September.
And so we might finally see a breakout, or breakdown, from this trading range.

This post was published at Jesses Crossroads Cafe on 01 SEPTEMBER 2016.

Gold Daily and Silver Weekly Charts – A Nation of Servants

The PMI number came in much lower than expected this morning at 49.4, an outright contraction.
This was dismissed by some as indicative of manufacturing, which is no longer very important to GDP as compared to the ‘service sector.’
All eyes will be on the Non-Farm Payrolls report, probably to an excess, because the thinking is that a stronger number will give the hawks cover to arm twist a 25 bp rate increase at the FOMC in September.
A much lower than expected number will chill that expectation, and will probably cheer on financial asset prices unless it is disastrous.
The expected number is 180,000 and the ‘whisper’ is 200,000.
After the initial reaction, wiser heads will be looking at the prior month’s revision from 255,000 if any. And probably more importantly, they will look at the growth in average hourly earnings.
The financiers and the Democratic establishment would like a number north of 200k. This would give the former a stronger dollar to eat you with my foreign dears, and the latter a boost for their presidential candidate who hopes to ride in on waves of Obama brand economicolatry.

This post was published at Jesses Crossroads Cafe on 01 SEPTEMBER 2016.

No ‘Free Money for All,’ only for Corporations & Governments; Consumers Need Not Apply: ECB’s Nowotny

Consumer Debt with Negative Rates is ‘a Perversion.’
I’m not sure what, if anything, Ewald Nowotny, Member of the ECB Governing Council and Governor of the Austrian National Bank, and I agree on in terms of monetary policy. But today he said something that is exceptionally truthful – and a glaring expression of just how hypocritical a central bank and the people that run it are.
Nowotny’s keynote speech today at the European Forum Alpbach in Switzerland was titled (my translation from German), ‘Low Interest-Rate Policies: Free Money for All, or Savior in an Emergency.’
A rhetorical question which he then proceeded to answer with utmost clarity: Free money, or worse, money with negative interest, is not for everyone. Only governments and corporations are allowed to benefit from it, but not consumers.
In fact, consumer loans with negative interest rates would be ‘a perversion,’he said to all those waiting eagerly for their negative interest mortgages where they would actually be paid every month for having borrowed a ton of money to buy a ludicrously overpriced house. Even Switzerland, which has the deepest negative rates in the world, has drawn a line.
‘I believe it would be a perversion, an economic one, for loan rates to suddenly be negative. It totally goes against the economic nature of a loan,’ he said.

This post was published at Wolf Street by Wolf Richter ‘ September 1, 2016.

Guest Post: The Mysterious Guardian Of The U.S. Stock Market

Note: Scott Rabinowitz owns Quarterwave Asset Management LLC and has been a professional investor in the precious metals sector for over 15 years.
Yes, this has all become mentally exhausting for anyone that has been around what are still referred to as ‘markets for the past 25 years. In fact, I’d say it has become mentally exhausting to anyone still capable of thinking on their own, not having to be spoon fed an explanation for every logical and illogical outcome that seemingly approaches at a more rapid rate as each day passes. To most thinkers, it is frustrating that fundamentals seem to be nothing more than an old pastime to everyone else. Our world has succumbed to an existence in which a mere few can and will dictate their desired outcomes as if it is a certainty and not just an experiment in which unintended consequences are nothing more than a potential nuisance.
So, when nothing makes sense anymore and every day feels like lunch with the Mad Hatter, one must seek out a potential explanation for the confounding behavior of ‘markets’. After all, fundamentals have clearly been deteriorating for some time now, whether it be corporate revenues (declining), earnings (declining), etc. Yet US equity markets are at all time highs – coated in as much Teflon as the political world. Oddly enough however, precious metals are having a great year despite the pullback in August. It should appear to both the casual and non-casual observer that there must be a conduit, instigator, call it what you will, mechanism, to help explain how ‘markets’ seemingly either abruptly stop going down or up as if was magic.

This post was published at Investment Research Dynamics on September 1, 2016.

Nigel Farage Warns “The Establishment Is Losing Control Over The People”

“The Empire is befuddled,” at Brexit, exclaims Nigel Farage, telling Alex Jones that globalist establishment is clueless on how to regain control. In a wonderfully frank interview, Farage explained that the establishment’s “problem is that it’s fighting this argument on several fronts at once.’
“We’ve got the American elections going on, we’ve got a big referendum coming up in Hungary on migrant quotas from Germany, we’ve got a rerun of the Austrian presidency where the right-wing candidate was cheated by false votes,’ Farage said. ‘So they’ve got a real problem, they’re fighting us now on a whole series of fronts.’
‘What will they do to fight back? I don’t know the answer to that yet, and you know something? Nor do they.’
‘Brexit is the first strike-back against this phenomenon of the big banks, the big businesses, effectively owning politics, willfully destroying nation-state democracy, getting rid of that thing our forbearers actually fought and shed their blood to create and to preserve our liberties and our freedoms,’ he continued. ‘All of that being taken away and suddenly in a referendum that no one said we could win, and we’ve done it.’

This post was published at Zero Hedge on Sep 1, 2016.

Asian Metals Market Update: September-1-2016

Summer in the northern hemisphere is over. Demand time in Asia is there for the next seventy days. In the next seventy days Asian demand will dictate the direction for next year. August’s fall in gold and silver aided by refocus of investor to US interest rates has resulted in a bullish outlook getting a mid year review. I believe that gold and silver will fight over the challenge of higher US interest rates and that the dip in prices over the next seventy days should be used to invest for the next four years. If you do not want to invest in gold and silver then buy lots of land in India as the real estate sector in India is on the verge of a massive bull run.
For the rest of the year as long as gold trades over $1230, the overall bullish trend is intact. Silver needs to trade over $1460 for the rest of the year to prevent it from moving into a long term bearish zone. With every fall, the risk to return ratio moves in favor of the long term silver investor. Those wanting to invest in gold for the long term should wait for some more time.

This post was published at GoldSeek on 1 September 2016.