Gold Daily and Silver Weekly Charts – Blast Radius

Gold and silver bounced back a little bit today as the dollar gave up some of its recent gains.
It is not always this way, but at this time at least the precious metals seem to be price driven by the forex traders, who care not a whit about supply and demand.
That is setting up a real witches brew of malinvestment, because they are attempting to sustain the unsustainable with increasing use of force of leverage and market dominance.
Sometimes you just have to let someone have their way, and try to stay out of the blast radius when the inevitable reckoning comes and hard reality intrudes on their dreams of conquest.
I am sure you are familiar with that axiom from your experience at work, especially if you have worked at a large organization staffed with ‘very serious people’ at the top.
I am not sure how far the monetary blast radius will extend, but it will almost certainly be fairly impressive.

This post was published at Jesses Crossroads Cafe on 14 SEPTEMBER 2016.

Ease this

‘There is no simple, painless solution. The world has to reduce debt, shrink the financial part of the economy, and change the destructive incentive structures in finance. Individuals in developed countries have to save more and spend less. Companies have to go back to real engineering. Governments have to balance their books better. Banking must become a mechanism for matching savers and borrowers, financing real things. Banks cannot be larger than nations, countries in themselves. Countries cannot rely on debt and speculation for prosperity. The world must live within its means.’
– Satyajit Das, ‘Extreme Money – Masters of the Universe and the Cult of Risk’.
The commentary is now off on its summer break and will reappear in early October.
There is now almost $16 trillion worth of sovereign debt trading with a negative yield. Last week the credit bubble entered new territory with two euro zone issuers of corporate debt, Germany’s Henkel and France’s Sanofi, joining them. This may, just may, happen to mark the top of the great bond bull run that started as far back as the early 1980s. By Friday of last week, the implications of an ugly slide across bond and stock markets may have led some fund managers and traders to soil themselves, or suffer heart problems, or both. By a happy coincidence, however, Henkel makes Persil laundry detergent, and Sanofi makes treatments for cardiovascular disease. So any affected ‘investors’ dumb enough to have bought those guaranteed loss-makers and then suffered immediate regret don’t have to look too far for a remedy.

This post was published at Sovereign Man on September 14, 2016.

Negative Rates Nail Savers

You shall not crucify mankind upon a cross of gold.’
– William Jennings Bryan, July 9, 1896
‘You shall not crucify the retiree and saver on a cross of negative rates.’
– John Mauldin, September 14, 2016
The Economy Is Rigged
As is now the practice on many college campuses, I should preface this week’s newsletter with a trigger warning. What you are about to read could give you serious heartburn, especially if you are an economist or a central banker. Or a retiree or just someone who has lived life playing by the rules, and now you find yourself getting no return on your savings, forcing you to save even more and work even longer. Let me be careful to point out that I am not including all economists in my rather sweeping indictments. But if the shoe fits…
I also know that this special letter is a little longer than the average. But I think the topic requires a whole-cloth approach rather than yet another two- or three-part series.
Before we jump in, I want to note that economic chaos is not my only concern. We face a whole different kind of chaos on the geopolitical front. To a considerable degree it overlaps with the economic problems I’ll discuss today. George Friedman has been calling the Eurasian landmass a ‘cradle of disorder.’ It’s home to 5 billion people, and it’s floundering in a sea of accelerating crises.

This post was published at Mauldin Economics on SEPTEMBER 14, 2016.

Central Bankers Transition Into The Next Currency Is Almost Complete – Episode 1075a

The following video was published by X22Report on Sep 14, 2016
CEO’s of Corporate America are saying the economy does not look that good, 36% says they will layoff employees and 37% say their will be no change. US import prices tumble for the 25th month in a row. Baltic Dry Index falls by 40 points. Wells Fargo is just the first bank, this is starting to look a lot like 2008. China says they will fight Obama’s claims for price setting. Venezuela is deteriorating very quickly, hyper inflation is setting in. Marc Faber is warning that the central banks will own everything. The US House of Representatives signals support for Block Chain Currency, setting the stage for the transition.

SEPT 14/GOLD AND SILVER ARE CONTINUOUSLY BEING CONTAINED BY OUR BANKERS AS THE WORLD IS NOW WORRIED ABOUT HIGHER BOND YIELDS CRASHING INVESTORS/BANK OF JAPAN IN CHAOS AS THEY DO NOT KNOW WHAT TO …

Gold:1321.50 up $0.50
Silver 18.98 up 7 cents
In the access market 5:15 pm
Gold: 1322.80
Silver: 18.99
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
*Mathew Hunter of the CFTC has corrected me on the timing of the London fixes
And now the fix recordings:
Shanghai morning fix Sept 14 (10:15 pm est last night): $1322.21
NY ACCESS PRICE: $1318.75 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$1325.01
NY ACCESS PRICE: 1321.50 (AT THE EXACT SAME TIME)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: Sept 14: 5:30 am est: $1323.20 (NY: same time: $1322.50: 5:30AM)
London Second fix Sept 8: 10 am est: $1321.75 (NY same time: $1323.00 , 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.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
For comex gold:The front September contract month we had 16 notices filed for 1600 oz
For silver: the front month of September we have a total of 106 notices filed for 530,000 oz
Let us have a look at the data for today

This post was published at Harvey Organ Blog on September 14, 2016.

Paranoid! VIX Total Open Interest Hits All-time High

Perhaps investors are just paranoid … or they are justly concerned about a possible burst in the equities markets.
Total open interest on the VIX futures just reached an all-time high.
Indeed, the S&P 500 index does seem to be correlated with near zero Fed Funds rate and $4.45 trillion in Fed asset purchases (QE). And The Fed is hinting on raising their target rate sometime soon.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ September 14, 2016.

SP 500 and NDX Futures Daily Charts – Elitist Economic Knuckleheads

“Several economists I know seem to have assimilated a norm that the post-real macroeconomists actively promote – that it is an extremely serious violation of some honor code for anyone to criticize openly a revered authority figure – and that neither facts that are false, nor predictions that are wrong, nor models that make no sense matter enough to worry about.”
Paul Romer, The Trouble With Macroeconomics
If Bloomberg television quoted his views correctly today, then a well known academic economist they cite explains that we have full employment, even though the labor participation is so low, because the video games available to consumers have gotten so good that people would prefer to stay at home and play them rather than work.
And so they don’t work, and therefore we can ignore them and the economic engineers of the Fed can claim full employment with a straight face.
If the games were not so good, then people would get bored staying at home and would go to work. It is just a rational actor’s choice.
Since when is work, for the majority of people at least, an optional choice for one type of pleasure and entertainment and diversion compared to others? Let’s see, shall I go to the movies, go fishing, or go to work today?

This post was published at Jesses Crossroads Cafe on 14 SEPTEMBER 2016.

Greenspan: “Crazies May Undermine The Country”

Alan Greenspan just can’t stay away from the spotlight these days.
The 90-year-old, former Fed chairman, who in recent years has sounded surprisingly similar to Trump (or perhaps it’s the other way around), most notably in late June when he warned that “A Crisis Is Imminent” and urged a return to the gold standard – similar to what Trump has warned only to get bashed as a delusional, Putin-loving, conspiracy theorist – made more provocative statements today when during a conference in Washington on Tuesday evening, he said that the U. S. economic and political system could be undermined by what he called ‘crazies.’
Perhaps he was referring to central bankers? Alas no, instead he peddled some fiction, guaranteeing that he won’t get any holiday cards from the Obama administration:
‘It is the worst economic and political environment that I’ve ever been remotely related to.”

This post was published at Zero Hedge on Sep 14, 2016.

Unprecedented Global Bond Bubble Threatens Holders of Cash

As big as previous real estate and stock market bubbles have been, the current global bubble in government debt dwarfs them all. Not only is it far bigger in size and scope (some $60 trillion in sovereign bonds now trade globally); it is also unprecedented in character.
The world has rarely seen a bond bull market that is not only 36 years old, but also shows few signs of ending. And never before in recorded history have interest rates gotten so low across the board.
How much lower can interest rates go? Conventional wisdom once held that rates could only get as low as 0%. WRONG! In the current crazed central banking climate, yields on cash can move below zero, and they could stay there for longer than anyone can possibly imagine.
Negative rates – where lenders pay interest to borrowers – are a strange-but-true phenomenon in Japan and throughout much of Europe. They aren’t confined just to overnight rates set directly by central banks. They have spread across the yield curve to afflict the long-term bond market as well.

This post was published at GoldSeek on 14 September 2016.

Democrats Panic: “This Nightmare Is About To Become Our Reality”

Hillary is surrounded by so many scandals and unanswered questions it’s often difficult to keep track of the daily developments. Just a few of the recent scandals and allegations include lying about her “pneumonia” diagnosis (does anyone actually believe she has pneumonia, btw?), a private server setup to intentionally avoid FOIA requests during her term as Secretary of State, missing emails that were never turned over to the State Department, actual admissions from IT specialists that they deleted emails despite knowledge of a federal subpoena, pay-for-play at the Clinton Foundation, $100s of millions of dollars collected from paid speeches to wealthy donors and the Benghazi coverup that resulted in the death of American soldiers and a diplomat. And this doesn’t even touch upon the early year scandals including Whitewater, Troopergate, Travelgate, Vince Foster’s suicide, etc, etc, etc.
Any single one of these scandals/allegations probably would have been enough to topple a mere mortal candidate. As such, it’s no wonder that the Clintons maintain extreme levels of secrecy in their personal and professional lives. It’s hard to keep that many scandals contained if you open up to too many people.
That said, as The Hill reports, the secrecy surrounding Clinton is starting to worry her staff and Democratic strategists as the latest polls show her tanking.

This post was published at Zero Hedge on Sep 14, 2016.

“Stock Trading Whiz Kid” Fined $1.5 Million By SEC For Being a “Paper Trading” Fraud

One of the most amusing “investor” types to emerge as a result of the Fed’s 7-year-long attempt to centrally plan the market, has been the infamous 17-year-old “hedge fund” manager, who while not actually trading for lack of cash and, of course, the remotes clue what to do, was happy to advise others of his paper trades on twitter or via newsetters, and collect a fee for such “services.” And while it was easy to pretend trade for years and years as long as the Fed injected trillions into the “market”, levitating stocks every higher, lately it has been far more difficult, not only for real trader, but also for “paper traders” too.
Case in point, “stock trading whiz kid” Manuel E. Jesus, aka “Manny Backus” – and apparent chess prodidy based on his photo – and his newsletter company Wealthpire Inc.
This is how WealthPire describes, or rather, described itself:

This post was published at Zero Hedge on Sep 14, 2016.

Chart of the Day – 5.2% Household Income Gain Vs. Reality

The US Census Bureau said yesterday that annual household income rose 5.2% in 2015. Compare that with the gain in BLS reported average weekly earnings through August 2016.
If median household income really rose as fast as the government said, the only way that could be is if household size increased. More adult children moved back home. More parents moved into the mother-in-law suite. And more single people shacked up.
But more people were not better off.
Welcome to the world of government statistics.

This post was published at Wall Street Examiner by Lee Adler ‘ September 14, 2016.

VIX ETF Smashes All Records

For the first time in history, yesterday saw VXX (the VIX ETF) traded more volume than the most-traded stock in the S&P 500. With speculative positioning at record shorts (extreme levered long stocks) and volume soaring beyond Aug 2015’s previous record, we suspect this will not end well…
As Bloomberg reports, for the first time on record, the iPath S&P 500 VIX Short-Term Futures ETN recorded more volume on Tuesday than any company in the S&P 500 Index, with a record 110 million shares changing hands. The closest was Bank of America Corp., with 89.3 million shares trading. The note slipped 3.1 percent on Wednesday as the S&P 500 Index rebounded.

This post was published at Zero Hedge on Sep 14, 2016.

Alan Greenspan Warns That Dangerous ‘Crazies Will Undermine The System’

Former Federal Reserve chairman and consummate insider Alan Greenspan discussed his concerns that things were tipping out of ‘equilibrium’ and spinning into instability and chaos.
Stagnation, lack of growth, and forced growth that is only going through the motions. It is all catching up with us, and it may be the fault of ‘the crazies,’ Greenspan warned.
But who exactly is he referring to?
‘Is it his own crowd of the feckless and incompetent choking the life out of America through monetary policies?
‘Or maybe the suicidal nihilists trading derivatives on Wall Street and playing with matches?
‘Or the class of working bankers and lenders, piling up more incendiary fertilizer material on the load before the crash comes, flinging more excrement into the fan and leveraging a complete and total disaster of epic proportions?
‘Or is it the class of power brokers, who quietly, coldly shifted around a few pieces that cost the other side the entire farm, and the shirt on their backs, too?
Alan Greenspan doesn’t specify. He just warns us to heed the danger of ‘the crazies.’
via Bloomberg:

This post was published at shtfplan on September 14th, 2016.

Kimmel: “Clinton Conspiracy Theories Would Be Harder to Believe If They Didn’t Actually Come True”

A few weeks back, Jimmy Kimmel laughed off “conspiracy theories” about Hillary’s health by conducting an “in-depth” assessment of her physical conditioning by asking her to open a jar of pickles on the air (we wrote about it here). On that show, Hillary responded to reports that her health was deteriorating by saying that she feels like she is in an ‘alternative universe’ and laughed off any questions about her health and stamina, arguing that the current speculation “makes no sense” because she doesn’t “go around questioning Donald Trump’s health.”
Fast forward a couple of weeks and, after Hillary’s “medical episode” this weekend, Kimmel had to backtrack slightly as he concluded in his recent opening monologue that “Clinton conspiracy theories would be harder to believe if they didn’t actually come true.”


This post was published at Zero Hedge on Sep 14, 2016.

Venezuela’s “Death Spiral” – A Dozen Eggs Cost $150 As Hyperinflation Horrors Hit Socialist Utopia

The question of whether Socialism can be an effective economic system was famously raised when Margaret Thatcher said of the British Labor Party, “I think they’ve made the biggest financial mess that any government’s ever made in this country for a very long time, and Socialist governments traditionally do make a financial mess. They always run out of other people’s money. It’s quite a characteristic of them. They then start to nationalise everything.” There are dire reports of people waiting in supermarket lines all day, only to discover that expected food deliveries never arrived and the shelves are empty. There are horrific tales of desperate people slaughtering zoo animals to provide their only meal of the day. Even household pets are targeted as a much-needed source for food. President Maduro is doubling down on the proven failed policies and philosophies of “Bolivarian Socialism,” while diverting attention away from the crisis — pointing fingers at so-called “enemies” of Venezuela such as the United States, Saudi Arabia and others. A dozen eggs was last reported to cost $150, and the International Monetary Fund “predicts that inflation in Venezuela will hit 720% this year.

This post was published at Zero Hedge on Sep 14, 2016.

Breadwinner Jobs Still Below Dubya Highs in 2006/2007, Real Median Household Income Still Below 2007 Level

As we ponder the economic recovery after The Great Recession (and financial crisis), we see a disturbing pattern of middle-class job demolition. Using what former OMB head under President Reagan calls ‘The Breadwinner Economy,’ we can see that construction, manufacturing, etc. jobs have risen, but are still below the highs of the economy under President George W. Bush (aka Dubya) in 2006/2007.

This post was published at Wall Street Examiner on September 14, 2016.

Worried Dem Strategists Say Clinton Needs To Shed The Secrecy And Get A “Personality Transplant”

Hillary is surrounded by so many scandals and unanswered questions it’s often difficult to keep track of the daily developments. Just a few of the recent scandals and allegations include lying about her “pneumonia” diagnosis (does anyone actually believe she has pneumonia, btw?), a private server setup to intentionally avoid FOIA requests during her term as Secretary of State, missing emails that were never turned over to the State Department, actual admissions from IT specialists that they deleted emails despite knowledge of a federal subpoena, pay-for-play at the Clinton Foundation, $100s of millions of dollars collected from paid speeches to wealthy donors and the Benghazi coverup that resulted in the death of American soldiers and a diplomat. And this doesn’t even touch upon the early year scandals including Whitewater, Troopergate, Travelgate, Vince Foster’s suicide, etc, etc, etc.
Any single one of these scandals/allegations probably would have been enough to topple a mere mortal candidate. As such, it’s no wonder that the Clintons maintain extreme levels of secrecy in their personal and professional lives. It’s hard to keep that many scandals contained if you open up to too many people.
That said, as The Hill reports, the secrecy surrounding Clinton is starting to worry her staff and Democratic strategists as the latest polls show her tanking.

This post was published at Zero Hedge on Sep 14, 2016.