Traders Worry As Divergence Deja Vu Looms

While ‘everything was awesome’ this morning in stock market land (economic data, Fed uncertainty, and domestic terrorism aside), the more troubling reality under the surface of the equity market’s gains is a plunge in 52-week highs… a divergence which spelled big trouble the last time it occurred.
As Bloomberg nioted, one technical barrier to further advances in the S&P 500 Index is the lack of market breadth, as fewer U. S. stocks attain new 52-week highs compared with earlier this year.

This post was published at Zero Hedge on Sep 19, 2016.

Just Charts – All Market Eyes on the FOMC Meeting This Week

We ended up at the neurologist’s office most of the afternoon and ran late with EEG testing.
All eyes are clearly on the FOMC decision on rates on Wednesday the 21st at 2 PM.
If they do nothing this week, then December is the next most likely opportunity for them to get their increase in basis points so they can lower them again when their latest asset bubble collapses.

This post was published at Jesses Crossroads Cafe on 19 SEPTEMBER 2016.

Jawboning: Fed Unlikely To Raise Rates At Wednesday Meeting, But Post Election Increase At 55.5%

The Fed’s Open Market Committee (FOMC) is meeting this Wednesday and it is starting to resemble an episode of the TV show ‘House.’ Much speculation for 55 minutes, then Dr. House announces the correct diagnoses. Same as the FOMC, but since 2008 there has been lots of speculation and jawboning about a rate hike, then … nothing happens. At least until after the upcoming Presidential election.
As of this morning, there is seemingly little chance of a Fed rate hike for either the September or November meetings. But for the December meeting, the probability of a rate hike rises to 55.5%.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ September 19, 2016.

Fascist Business Model: Reich Economics

The Fascist Business Model incorporates all the worse elements of Keynesian economics, a broken fallacious school of thought. The model also integrates a vast system of economic heresy, put forth as public address dogma. All their messages are wrong. They are instead aligned with support of the power structure where big banks conduct self-dealing and print money for themselves.
Consider many of the Fascist Business Model messages, laced within the endless din of propaganda. Their messages are all false, in support of the existing power structure in place. The Jackass privately calls it Reich Economics, a truly broken appendix to the demonstrably broken Keynesian chapters of heretical economics. The West has followed the methods of John Maynard Keynes, who also held disdain for the Gold Standard. In doing so, the West has destroyed the financial platforms, eroded the capital formation devices, polluted the business arenas, and put the entire USEconomy at risk of systemic failure. The only success of the model is preservation of power, which soon will come to an end.
Consider the many primary tenets of what the Jackass disparagingly calls Reich Economics, the phony standards of destructive economic and financial practices. They are all embedded in heresy. The public and financial professionals are coerced to accept the heresies as dogma, passed on by the high priests at the USFed and Wall Street banks. They are all highly destructive, yet widely accepted as valid and firmly in place.
ECONOMIC HERESIES
Quantitative Easing, the USFed initiative of bond purchases, is considered stimulus. It is not. Instead, it undermines the entire sovereign bond market. It encourages legitimate investors to dump US Treasury Bonds to the US Fed itself, while other legitimate investors refuse to buy USTBonds. The effect is to force hedging against the hyper monetary inflation, to raise the cost structure, and to eliminate the profit margins. Entire businesses and business segments shut down, retire their capital, and slash jobs. QE saves the big banks by providing liquidity to insolvent financial structures. At the same time, by saving the Too Big To Fail banks, QE destroys the integrity of the entire USEconomy, if not the entire Western Economy.

This post was published at GoldSeek on 19 September 2016.

Trump Issues Statement On Weekend Attacks: “That’s Why I Propose Extreme Vetting”

While luckily this weekend’s various terrorist attacks across the nation did not lead to casualties, both presidential candidates have been using the disturbing event to push their political agenda. Earlier today it was Hillary, and now it is Trump’s turn who released the following lengthy statement, saying this weekend’s attacks in Minneapolis, New York and New Jersey should be a “wake up call for every American”, and explain why Trump “proposes extreme vetting for immigrants from troubled.”
His full statement is below:

This post was published at Zero Hedge on Sep 19, 2016.

Post-Brexit Cash Hoarding Is “Worrying Signal” For UK Economy

Critics warn that “the Monetary Policy Committee made a serious policy error in August when it cut rates and restarted QE,” according to Pantheon’s Samuel Tombs, as the massive spike in UK narrow money-supply – which we first noted here – reflects “uncertainty, not income growth.” Pantheon warns that they doubt the biggest surge in cash-hoarding since Lehman “signals that an economic renaissance is on the way. On the contrary, the pick-up in the desire of households and firms to hold money, as opposed to other assets, is a worrying signal.”
On the heels of Japan, Switzerland, and Germany, the UK’s biggest surge in cash-hoarding since Lehman has been suggested by some as sign – along with better than expected economic data – that the British economy is faring well. However, as we noted previously, this is almost certainly wrong and Pantheon agrees…

This post was published at Zero Hedge on Sep 19, 2016.

The Central Banks Have Prepared The Economy For A 50% Market Collapse – Episode 1079a

The following video was published by X22Report on Sep 19, 2016
Ken Rogoff pushing for negative interest rates and a cashless society. The Fed has prepared the economy for a 50% market crash. US Congress says the enormous debt is now a national security issue. The central bankers are preparing to transition the US dollar into the SDR. Which means the everyday person is going to feel the economic pain.

GOLD AND SILVER RISE: GOLD UP $7.70 AND SILVER UP 43 CENTS/SHANGHAI FIX 5 DOLLARS ABOVE THE NY PRICE AT THE EXACT SAME TIME OF THE FIX/HUGE AMOUNT OF DOLLARS LEAVE CHINA/ HIBOR OVER 23% IN CHINA …

Gold $1313.50 up $7.70
Silver 19.21 up 43 cents
In the access market 5:15 pm
Gold: 1313.45
Silver: 19.16
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.
And now the fix recordings:
Shanghai morning fix Sept 19 (10:15 pm est last night): $ 1318.17
NY ACCESS PRICE: $1316.04 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1323.24
NY ACCESS PRICE: 1316.00 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!!
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: Sept 19: 5:30 am est: $1315.05 (NY: same time: $1315.08: 5:30AM)
London Second fix Sept 16: 10 am est: $1314.85 (NY same time: $1314.80 , 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 0 notices filed for nil oz
For silver: the front month of September we have a total of 27 notices filed for 135,000 oz
Last night, in my commentary to you I wrote:
I am a little worried that the bankers have called for another raid on gold/silver tomorrow. Gold/silver equity shares fell badly in the last hr against hardly any movement in the price of gold/silver. Usually that is a signal to attack. The comex OI is low and it really makes no sense to raid. Let us see what tomorrow brings.
Let us have a look at the data for today

This post was published at Harvey Organ Blog on September 19, 2016.

The Post-Brexit Boom is Baffling Elites

Can the Bank of England Really Take Credit for the Post-Brexit Boom?
In the months leading up to June’s Brexit referendum, the British public found themselves bludgeoned by a series of increasingly dire warnings concerning the consequences of a vote to leave the European Union. The campaign of scaremongering, quite self-consciously engaged in by supporters of the EU, ran the gamut from concerns that the UK might be excluded from the Eurovision Song Contest, to warnings by then Prime Minister David Cameron that Brexit could trigger the start of World War Three. Far more commonplace, however, was a seemingly ceaseless procession of warnings that a vote to leave the European Union would cause a recession in the British economy.
During the spring and early summer of this year, scarcely a week went by during which some establishment figure or organisation – from British Chancellor of the Exchequer George Osborne, to the IMF, to George Soros – did not make headlines in the UK with their grim predictions for the recession which would surely result from a decision to leave the EU. Indeed, Mr Osborne went so far as to publish a draft of the “emergency budget” which he anticipated would be required in the aftermath of a Brexit, an outcome which he prophesied would result in half a million British job losses. He further threatened that he’d have to make up for a 30 billion budgetary ‘black hole’ by cutting spending on the National Health Service, the state healthcare monopoly which Margaret Thatcher’s Chancellor, Nigel Lawson, famously described as ‘the closest thing the English have to a religion.’ The British press were particularly keen in their attention to the the warnings of Bank of England Governor Mark Carney, who repeatedly made it known that he foresaw significant negative impacts on the employment and growth rates resulting from a possible Brexit.

This post was published at Ludwig von Mises Institute on Sep 19, 2016.

Dangerous Times for stocks – U.S. is headed toward stagflation – We’re not in a stable equilibrium. It’s a good time for Gold and Silver!

Most global financial markets struggling to rise, central bank policies are placing interest rates at all time lows. These are not producing the results wanted [but are holding deflation at bay].
Important governments are emasculated by political stalemate, while the structure of the E. U. is facing what Junker calls an ‘existential problem’ [translated is under threat from an array of problems].
Hence, the comments by Alan Greenspan, Paul Singer and several others demandour attention.
In this article, we will try to look forward to the world they are looking at which is thundering on its way towards us.
The title of this article are a series of quotes are from Paul Singer and Alan Greenspan, two successful and respected men with a long history in the financial world. Well, you already knew that. But the significance of their remarks, at a time when investors and funds are almost forced to keep a myopic view of the financial world, is important, as these come from experts standing back and giving a more distant perspective, almost uncluttered by short term financial incidents.
The Long view from Greenspan & King
Singer and Greenspan are not alone for Mervyn King, in the ‘End of Alchemy’, the former head of the Bank of England, writes of central banks’ frustration in dealing with the stagnant global economy. ‘Central banks,’ he says, ‘have thrown everything at their economies, and yet the results have been disappointing, ‘Whatever can be said about the world recovery since the crisis, it has been neither strong, nor sustainable, nor balanced.’

This post was published at GoldSeek on 19 September 2016.

How Low Oil Prices Failed To Stimulate The Economy

The 2014 plunge in oil prices was initially hoped to provide stimulus to the U. S. economy, with the Fed arguing that the average household would save $700 in fuel costs. A new paper from the Brookings Institution suggests otherwise.
While higher discretionary income due to lower oil prices boosted consumer spending by 0.61 percent, the collapse in oil drilling reduced total investment by 0.62 percent, almost perfectly offsetting the benefits, according to the report.

This post was published at Zero Hedge on Sep 19, 2016.

Slowly… Then All At Once

The staggering incoherence of the election campaign only mirrors the shocking incapacity of the American public, from top to bottom, to process the tendings of our time. The chief tending is permanent worldwide economic contraction. Having hit the resource wall, especially of affordable oil, the global techno-industrial economy has sucked a valve in its engine.
For sure there are ways for human beings to inhabit this planet, perhaps in a civilized mode, but not at the gigantic scale of the current economic regime. The fate of this order has nothing to do with our wishes or preferences. It’s going down whether we like it or not because it was such a violent anomaly in world history and the salient question is: how do we manage our journey to a new disposition of things. Neither Trump or Clinton show that they have a clue about the situation.
The quandary I describe is often labeled the end of growth. The semantic impact of this phrase tends to paralyze even well-educated minds, most particularly the eminent econ professors, the Yale lawyers-turned-politicos, the Wall Street Journal editors, the corporate poobahs of the ‘C-Suites,’ the hedge fund maverick-geniuses, and the bureaucratic errand boys (and girls) of Washington. In the absence of this ‘growth,’ as defined by the employment and productivity statistics extruded like poisoned bratwursts from the sausage grinders of government agencies, this elite can see only the yawning abyss. The poverty of imagination among our elites is really something to behold.
As is usually the case with troubled, over-ripe societies, these elites have begun to resort to magic to prop up failing living arrangements. This is why the Federal Reserve, once an obscure institution deep in the background of normal life, has come downstage front and center, holding the rest of us literally spellbound with its incantations against the intractable ravages of debt deflation. (For a brilliant gloss on this phenomenon, read Ben Hunt’s essay ‘Magical thinking’ at the Epsilon Theory website.)

This post was published at Zero Hedge on Sep 19, 2016.

ICAP: “The Window Of Opportunity For A Fed Rate Hike Has Closed”

With September rate hike odds coiling bloe 10%, the market has already spoken about the possibility of a rate hike in 2 days. And since the Fed has never “surprised” the market by hiking when expectations of a rate increase were below 60% as we documented last year, it is unlikely that Yellen will seek to shock the market into an aggressive selloff.
And sure enough, in a note by Wrightson ICAP economist Lou Crandall, he writes that “the window of opportunity for a Fed rate hike has closed before the FOMC has a chance to meet, again.’

This post was published at Zero Hedge on Sep 19, 2016.

CPI Numbers Show Mixed Results for the Economy

The Consumer Price Index numbers released Friday showed inflation levels increasing 0.2%, which is slightly better than investors expected. Part of the rise was attributed to the so-called core inflation index, minus food and energy prices, which increased 0.3% in August. The all items index rose to 1.1% for the 12 months, still below the target rate of 2% the Fed has set.
According to the Bureau of Labor’s report, the energy and food indexes went unchanged in August. There were price increases for shelter, vehicle insurance, apparel, communication, and tobacco. However used vehicles, household furnishing, recreation, and airline fares all declined.
According to Bloomberg, medical costs saw their biggest jump since 1984. Medical care rose 1% while the cost of prescription drugs also soared 1.3%, bringing the increase in prices over the past year to a total of 6.3%.
It seems the CPI numbers are bringing in a mixed bag for investors and a little more justification for the Fed to consider a hike this year. But there’s more to these inflation numbers than meets the eye.

This post was published at Schiffgold on SEPTEMBER 19, 2016.

The Debate Is Over: Banking Has Become a Criminal Enterprise in the U.S.

Tomorrow the U. S. Senate Banking Committee will hold a hearing to take testimony from Wells Fargo CEO John Stumpf and Federal regulators to understand how this mega bank was able to get away with opening more than two million fake customer accounts over a span of years. The accounts and/or credit cards were never authorized by the customer and were opened solely by employees to meet sales quotas, get bonuses or to avoid getting fired for failing to meet sales targets.
The only reason the Republican-controlled Senate is holding this hearing is because the Wells Fargo fake-account story got a lot of coverage in the media when the Consumer Financial Protection Bureau (CFPB) announced a $185 million settlement over the charges on September 8. The reason the story got a lot of media coverage is because it’s a simple story to tell: widely respected bank opens two million accounts for its customers without their knowledge or permission, sometimes illegally funneling money to the new account from the old account to generate fees.
In July of last year, when Citibank, the deposit-taking retail bank settled charges with the CFPB for $700 million for deceptively selling add-on products to credit card customers, the Senate Banking Committee yawned and did nothing. The story didn’t get major press attention because it was a complicated story to tell. Among a long list of fraudulent practices, the CFPB found that Citibank led 2.2 million customers to believe they were paying to have their credit card monitored for fraud and identity theft, ‘when, in fact, these services were either not being performed at all, or were only partially performed,’ according to the CFPB.

This post was published at Wall Street On Parade By Pam Martens and Russ Marte.

JPM Pours Cold Water On The Apple Rally: “Positive Reaction From Carriers Premature”

The main reason why last week’s market rout was not even worse, is because AAPL, the world’s biggest company by market cap and a core pillar of both the S&P and Nasdaq, staged one of the biggest weekly rallies in years following reports of better than expected adoption and pre-order reports from carriers. However, at least according to JPMorgan, it was all a lot of noise and very little signal.
As JPM’s Rod Hall writes in a note release overnight, the positive market reaction is “premature.” He adds that JPM “updates on Apple this morning post the positive US carrier commentary of last week and in conjunction with a subscriber base update from our US Telecom team headed by Phil Cusick here (LINK). Our current US iPhone Y/Y growth estimate of 4% for the Dec QTR within our below consensus iPhone sell-through expectation of 69.4m units looks, if anything, optimistic against our Telco team’s bottom up modeling. We note that Apple typically runs shortages at this point in a launch and that this is likely exacerbated by lower initial builds than we saw last year. We are sticking with our cautious late 2016 stance on Apple based on our below Street iPhone expectations though we continue to believe the stock is undervalued with better options for growth in 2017.”
Here are the other reasons why JPM remains bearish:

This post was published at Zero Hedge on Sep 19, 2016.

Gold and Silver Market Morning: Sep-19-2016 –Gold and silver consolidating!

Gold Today -New York closed Friday at $1,310.90 yesterday. London opened at $1,318.
– The $: was stronger at $1.1159: 1 from $1.1240: 1 Friday.
– The Dollar index was stronger at 95.92 from 95.30 Friday.
– The Yen was slightly weaker at 102.04: $1 down from 102.00: $1 Friday against the dollar.
– The Yuan was slightly stronger at 6.6737: $1 from 6.6740: $1 Friday.
– The Pound Sterling was very weak at $1.3058: 1 from Friday’s$1.3229: 1.
Yuan Gold Fix
With Shanghai back in business we see it registered the purchase into the SPDR gold ETF and took the price higher. On the surface it looked like Shanghai was walking its own road after the holidays, but with the SPDR having to find the gold in London today to supply the Friday’s buying we feel that Shanghai was fulfilling its role in the 24-hour global gold market.
LBMA price setting: The LBMA gold price setting on Thursday was at$1,315.05. Friday it was at set at $1,314.25.
The gold price in the euro was set at 1,178.41 against yesterday’s 1,171.03.
Ahead of the opening of New York the gold price was trading at $1,314.80 and in the euro at 1,177.98. At the same time, the silver price was trading at$19.12.
Silver Today -The silver price was dropped to $18.77 at New York’s close Friday down from $18.98, Thursday.

This post was published at GoldSeek on 19 September 2016.

FBI Raids Building In Elizabeth, NJ

Just hours after a bomb explosion took place during a robotic attempt to disarm a home-made bomb after investigators uncovered five suspicious devices at a train station in Elizabeth, NJ, the FBI launched a raid at a building in Elizabeth.
Sept. 19, 2016: Elizabeth train station where device was found
Undercover agents and members of the FBI’s Joint Terrorism Task Force were taking part in the raid in an apartment above a restaurant, roughly one mile from the train station. Bomb dogs went from car to car and trash can to trash can along a residential street. It was unclear whether they found any possible suspects, or if the apartment belongs to the named suspect, the Afghani-born, naturalized US citizen Ahmad Khan Rahami, or if he has any connection to the raid.

This post was published at Zero Hedge on Sep 19, 2016.