The Real Goal Behind Next Week’s OPEC-Russia Meeting

For the last few days, oil prices have been trading in a very narrow range between $42 and $45 a barrel. They won’t be staying there for long.
You see, there are two factors keeping prices locked in that range. One is short term, here in the United States.
And it was just resolved today…
The other is OPEC’s long-term strategy to crowd out competing oil producers. Rumors would have you believe this will change before the end of the month, at the upcoming International Energy Forum (IEF) summit in Algiers.
That’s not going to happen…
Yet.
Here’s when OPEC will change its strategy… and what the Algiers meeting is really about…

This post was published at Wall Street Examiner by Dr. Kent Moors ‘ September 22, 2016.

Time to ‘Be Alarmed’ about Emerging Market Debt: UN

The potential to unleash ‘third phase’ of the Global Financial Crisis.
It seems like only yesterday that a cacophony of voices – our own included – was warning about the dire threat posed to global economic stability by unraveling hard currency-denominated emerging market debt. Then, roughly six months ago, everything went quiet.
And the debt began growing again.
So far this year $153 billion of new EM corporate foreign currency debt has been issued, according to Citigroup. That’s 7% higher than the same period last year. No reason to worry, say Citi’s analysts W. R. Eric Ollom and Ayoti Mittra. So-long as the appetite for high-risk debt remains unabated, indefinitely, EM companies should be able to handle their need to roll over their foreign currency bonds and loans.
‘The TINA trade (‘There Is No Alternative’) remains a strong force in the market as investors search the world for higher yields in a low rate universe,’ the Citi analysts conclude. ‘We recommend investors remain long the asset class.’

This post was published at Wolf Street by Don Quijones ‘ September 22, 2016.

Fed Admits It Has No Clue

Hold the presses: the bond bear market has been averted!
Yesterday’s non-decision on the Federal Funds Rate was a surprise only to the intractable 12% of myopic analysts who want the Fed to get out of the business of printing dollars regardless of economic risk. The most interesting comment by Fed Chair Janet Yellen was her admission that she and her prestigious voting members don’t have a clue why inflation and capital investment spending have not returned to loftier levels.
Yellen: ‘Investment spending really has been quite weak for some time and we are really not certain exactly what is causing that. … the weakness in investment spending extends beyond that sector (declining oil drilling activity) and I’m not certain of exactly what explains that …’ Wow! Really? One may ask how theses elite economists can expect a significant 250 basis point credit tightening over the next couple of years in an economy muddling along just above ‘stall’ speed with no clue why inflation and capital expenditures have failed to rise as expected from their massive monetary stimulus.

This post was published at FinancialSense on 09/22/2016.

SEPT 22/GOLD AND SILVER RALLY BUT WE ARE COMING INTO OPTIONS EXPIRY WEEK AND THE CROOKS ALWAYS WHACK/RIOTS IN CHARLOTTE NC/POOR USA ECONOMIC REPORTS: CHICAGO FED NATIONAL MFG INDEX FALTERS;EXISTI…

Gold $1340.40 up $13.50
Silver 20.02 up 33 cents
In the access market 5:15 pm
Gold: 1337.50
Silver: 20.00
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 22 (10:15 pm est last night): $ 1335.27
NY ACCESS PRICE: $1333.40 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1337.76
NY ACCESS PRICE: 1333.60 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!!
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: Sept 22: 5:30 am est: $1332.45 (NY: same time: $1332.90: 5:30AM)
London Second fix Sept 16: 10 am est: $1339.10 (NY same time: $1338.85 , 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.

This post was published at Harvey Organ Blog on September 22, 2016.

How Janet Yellen Rationalizes The Most Pervasive Financial Bubble In History

‘Asset values aren’t out of line with historical norms.’ -Janet Yellen, 9/21/16
‘A reliable way to make people believe in falsehoods is frequent repetition, because familiarity is not easily distinguished from truth. Authoritarian institutions and marketers have always known this fact.’ -Daniel Kahneman
Janet Yellen has obviously read Kahneman’s work. That’s the only way I can think of to explain what she said about ‘asset values’ yesterday. She hopes that if the Fed, probably the greatest ‘authoritarian institution’ on the planet today, says it enough then people will just take it as fact.
However, the facts are the median price-to-sales ratio for the S&P 500 has never been higher than it is today. Indeed, it’s never been anywhere near this high.

This post was published at Wall Street Examiner by Jesse Felder ‘ September 22, 2016.

The Economic Indicators Are Contracting Quickly As The Economy Implodes – Episode 1082a

The following video was published by X22Report on Sep 22, 2016
Bakers unite in Greece to help those who cannot afford bread. Initial jobless claims hit all time new lows. Nobody is losing their jobs, according to the government. NAR can’t figure it out, everyone has a job according to the US Gov, but housing sales are declining, it doesn’t make sense. People are applying for emergency grants to keep their homes. The Fed’s National Activity Indicators shows the economy shows we are in a recession.

Wells CEO Resigns From Fed Advisory Council As Pressure Mounts

With Rep. Hensarling threatening that the Wells Fargo debacle is “only in its 3rd inning,” it appears today’s Labor Department probe was enough to push CEO Stumpf over the edge as pressure mounts for his head. Effective today, John Stumpf has resign his position as the Federal Reserve Bank of San Francisco’s appointee to theFed’s Federal Advisory Council.
Following the earlier Labor Department probe, Rep. Hensarling added to the pressure for Stumpf’s (or regulators’) heads…

This post was published at Zero Hedge on Sep 22, 2016.

Indoctrination: 35 Years of the US Department of Education

Since 1980, during the Carter Administration, America’s K-12 education system has come under increasing control by the dictates of the federal Department of Education (DOE) with failing results, taxing states and filtering the money through Washington to return a portion of it back to the states. In 2002, the Bush Administration approved the No Child Left Behind (NCLB) Act creating punishing amounts of federal paperwork and bureaucracy for local schools, requiring a $1B grant in special funding to help state and local education systems comply. In 2015 Congress enacted new legislation, Every Student Succeeds Act (ESSA), to allegedly overcome the NCLB federal intervention. The Heritage Foundation’s Lindsey Burke says, ‘ESSA does not accomplish these critical policy priorities’ to reduce the interference and excessive hours of standardized testing time. The 2016 DOE budget is $70.7B excluding a Presidential request for an additional $75B mandatory funding over ten years for Pre-K education.
What is America getting for federally-funded interference in education? The US spends over 23.2% of per capita income on its students each year, 9% more than Singapore while over 26 other countries that spend less outscore US students. Charles Murray says that even after substantial resources were dedicated to assist minorities over a 10 year period, SAT scores have indeed dropped for Amerindians ( -28%), Latinos (-26%), Blacks (-14%) and Whites (-6%) while substantially increasing for Asians ( 54).

This post was published at Ludwig von Mises Institute on Sept 22, 2016.

Bill Fleckenstein Slams CNBC “Jerk” – “Don’t Get In My Face Because I Won’t Join Your Party”

Having been invited on to CNBC to discuss his views of the market, famous short-seller Bill Fleckenstein explained rather eloquently that QE4 is coming and people will wake up to the fact that central bankers “are the arsonists that create the fire, not the firemen that put it out.” This non-mainstream view was treated with disdain by CNBC host Tim Seymour who slammed Fleckenstein for “missing out” on the “artificial market’s” (because even CNBC now admits that’s what it is) gains. The response was epic.

This post was published at Zero Hedge on Sep 22, 2016.

Horseman Capital Reveals The “Best Short In The World At The Moment”

When Japan’s PM Shinzo Abe spoke at the Reuters Newsmaker event yesterday, one prominent hedge fund manager was present: Third Point’s Dan Loeb. As Reuters reported, the outspoken billionaire activist investor, whose Third Point hedge fund has recently pushed for change at Japanese companies, said on Wednesday that he approved of the Bank of Japan’s monetary policy move (as we will show in a subsequent post, he was one of the very few who did so) but added corporate reform is still needed to help revive growth.
Loeb, whose $16 billion Third Point fund has been investing in Japan for years, was speaking at the Reuters Newsmaker event featuring Japan’s Prime Minister Shinzo Abe. After making bets on Japanese companies ranging from Sony Corp, to robot maker Fanuc Corp and most recently retailer Seven & i Holdings Co Ltd, Loeb said foreign investors are being welcomed more now. Some large Japanese institutions agreed with his views, Loeb said, noting he has “allies” in Japan and “our interests are aligned.”
Among other ideas, Loeb said he had looked at investing in Nintendo Co Ltd, but stopped short, though he approves of the company’s expansion into mobile technologies. He said he and Japanese investors are looking for the same thing: to have better-run businesses whose benefits will eventually spread “far and wide.” But he added that the potential for increased government protection of small- and medium-sized companies was misguided.

This post was published at Zero Hedge on Sep 22, 2016.

Deja vu: Fannie and Freddie Lower Lending Standards

Stop me if you’ve heard this one before, but Fannie Mae and Freddie Mac are lowering mortgage standards. On Monday, the two government-backed housing giants revealed a new program designed to boost mortgage origination among first time buyers and those with low to medium incomes. The new program, which will initially be limited two non-bank lenders, will allow borrowers to include the income of residents that aren’t actually on the mortgage, as well as make it easier for borrowers to include income from second jobs.
While these changes may strike some as sensible, anyone who has seen The Big Short would have valid concerns in the oversight of these looser lending standards – especially when you consider that the companies responsible for mortgage origination will not be the ones holding the mortgages, Fannie Mae and Freddie Mac will. It’s always easier to make loans when you know the taxpayers are the ones that will be holding the risk.
Not only does this program increase taxpayer risk, it does nothing to solve the real issues in the housing market.

This post was published at Ludwig von Mises Institute on Sept 22, 2016.

Gold Daily and Silver Weekly Charts – Been Down, Looking Up

If you did not pick up on the completely obvious, gold and silver were smacked down lower ahead of the FOMC meeting so that when assets, including the precious metals, rallied after the Fed did nothing they would not challenge key overhead, breakout resistance.
So today we saw some additional timid rallying in the metals, with gold being held below 1350 and silver below 20ish.

This post was published at Jesses Crossroads Cafe on 22 SEPTEMBER 2016.

CLINTON-BUSH NWO CRIME CARTEL COLLAPSING

The following video was published by SGTreport.com on Sep 22, 2016
As Hilary Clinton’s health, public support and campaign continue to collapse, the establishment is circling the wagons around their puppet thereby exposing their NWO agenda and all of its ugly, anti-American colors. George HW Bush says he’ll vote for Hillary, and why not? The Bush family created the Clintons. Goldman Sachs is forbidding its employees from making any donations to Donald Trump. And the mockingbird mainstream media continues to cover up Hillary’s perjury and the BILLIONS of dollars missing from the Clinton Foundation. The establishment is burning down its own house in the vain attempt to save it. Writer and researcher David Jensen joins me to talk about all of it.

How a Fed Rate Hike Will Affect Your Mortgage Rate

Think a Fed rate hike will affect your mortgage rate? Not so fast.
A Federal Reserve rate hike likely won’t impact mortgage rates directly, according to the publisher of the Wall Street Examiner, Lee Adler.
Adler has over 44 years of experience in the financial industry and previously worked as a commercial real estate appraiser for 15 years.
While he says a Fed rate hike will not have the impact on mortgage rates that many believe, he says there is a separate indicator that will dramatically impact your mortgage rate. And it could impact the entire housing market.
We’ll talk about this indicator in just a moment. But before we do, let’s look more closely at why a Fed rate hike won’t directly affect your mortgage rate.

This post was published at Wall Street Examiner by Cameron Saucier ‘ September 22, 2016.

Bond Market Knows What Fed Should Do

This article first appeared in McClellan Market Report #515, published Sep. 21, 2016, and reflects a theme we have reported on multiple times before.
We have an unblemished 21-year track record of predicting what the Fed should do, with 100% accuracy. What the FOMC actually does is often different from what it should do. As of the Sep. 21 FOMC meeting announcement, the Fed has missed another chance to do the right thing.
There is only one reason why the FOMC should ever change the Fed Fund target rate, and that is if the rate is in the wrong place. Deciding what is the right or wrong rate is really difficult to do if all you do is look at economic data and complex models with Greek-letter math. It is a lot easier if you just look at the bond market.

This post was published at FinancialSense on 09/22/2016.

The Morning After: World Sovereign Yields Mostly Decline After Fed Holds Tight

It is the morning after The Federal Reserve held tight on raising their key rate, The Fed Funds Target rate (which has only been raised ONCE since 2006 and that was at last December’s FOMC meeting).
The implied probability of an interest rate change remains about 60% for the December meeting, according to Fed Funds Futures data.

This post was published at Wall Street Examiner on September 22, 2016.

Asian Metals Market Update: Sep 22, 2016

The reaction of gold and silver to the FOMC statement has been muted. The rise is not as per my expectation. Pace of interest rate hike will be the key and not the actual hike. A December interest rate hike is imminent and has been factored in. Election spending and resulting jobs creation can result in US nonfarm payrolls numbers coming in over 200,000 for the rest of the year. However I believe that US employment generation will see a substantial reduction from next year with big chances of a fullstop on US interest rate hikes.
Gold has to break $1399.40 before or just after the release of the US September nonfarm payrolls which will be released on 7th October. In case gold does not break $1399.40 by 7th October, chances of moving into a bearish phase will be very high. Silver on the other hand just needs to trade over $1960 till 7th October to be in a long term bull zone. This is the technical picture of gold and silver for the next three weeks.
Today’s closing is very important for gold and silver. Gold and silver need a higher close to attract short term investors.

This post was published at GoldSeek on 22 September 2016.