Vote For Gold & Digital Wall on the Rio Grande

Make Money Great Again: Vote for Gold

By Guy Christopher, Originally Published on Money Metals Exchange
Who could possibly have predicted the astounding results of the November 8th presidential election?
A lot of folks, it turns out. Better than 60 million at last count. But that doesn’t include highly paid, and obviously over-paid, pollsters.
And it doesn’t include ‘journalists,’ who showered their elitist agendas on television screens, in newsprint headlines and across cyberspace during the 17-month presidential campaign.
In short, those posing as experts predicting the future blew it. And they blew it ‘big league,’ both before and after the election.
‘No question – markets are going to tank all over the world,’ said top experts at Yahoo Finance, during online, streaming coverage election night.
Stock markets instead went straight up for two days before modestly retreating.
Yahoo was not alone with that post-election financial advice. True to form, every business reporter in town got it dead wrong.

This post was published at Deviant Investor on November 18, 2016.

Jack Dorsey Exposed: How Twitter’s CEO Restricted Advertising For Trump’s Campaign

Submitted by Gary Coby, Director of Digital Advertising and Fundraising for Donald Trump, via Medium
On Sunday, I tweeted…
More specific, @twitter CEO @Jack Dorsey personally made call to restrict us; our advertising @blakehounshell @parscale – Gary Coby (@GaryCoby) November 13, 2016
We had an ‘upfront deal’ with Twitter, which is a common setup where we commit to spending a certain amount on advertising and in exchange receive discounts, perks, and custom solutions.
Our upfront deal was signed in August.
Deal Highlights:
$5MM Spend Commitment Discounts on Promoted Trends Bonus Media on Other Spending

This post was published at Zero Hedge on Nov 18, 2016.

Iowa Lawmaker Introduces “Suck It Up, Buttercup” Bill To Stop Student-Coddling At Universities

Submitted by Joseph Jankowski via PlanetFreeWill.com,
An Iowa lawmaker plans to put forth a bill that will target state universities that use taxpayer dollars to coddle students with sit-ins and grief counseling – such as ‘cry zones’ – in order help them cope with events like President-elect Donald Trump’s victory over Hillary Clinton.

This post was published at Zero Hedge on Nov 18, 2016.

Synthetic Gold Leasing: More Details Regarding The ‘Precious Metals’ On Chinese Commercial Bank Balance Sheets.

More proof the ‘precious metals assets’ on Chinese commercial bank balance sheets have little to do with the ‘surplus’ gold in China’s domestic market.
One of the topics about the Chinese gold market that has not been fully illuminated is the ‘gold’ on the 16 Chinese commercial banks’ balance sheets. At the end of 2015 the aggregated ‘precious metals assets’ on the bank balance sheets accounted for 598 billion yuan (RMB), which translates into approximately 2,682 tonnes of gold – if all the precious metals were gold related, which is very likely.
In my previous post on this subject we learned from examining the banks’ annual reports from 2015, that there are at least five gold assets that can appear in the ‘precious metals’ line item on the balance sheets. Namely:
Gold savings that belong to the banks’ customers (Gold Accumulation Plans, GAP) Gold inventory for the banks’ retail gold bar business Gold leasing business Gold held for hedging purposes Gold held outside China In this post we’ll examine more thoroughly the (Chinese and English) annual reports from 2007 until 2014 of the 16 banks, to learn more on what these huge tonnages represent. The most significant new finding is that Chinese banks conduct synthetic leases – in other words: swaps. By performing synthetic leases, Chinese banks can show ‘precious metals assets’ but no ‘precious metals liabilities’ on their balance sheets. Then, at the very surface it appears these banks own gold, in reality they own zero gold.

This post was published at Bullion Star on 18 Nov 2016.

Will San Diego Help End the NFL’s Addiction to Taxpayer Money?

Cheering for the home team can unify communities divided by politics, economics, and personal differences. However, this unification can come at a high cost, one that will inevitably fall to the taxpayer. While it is typical for professional athletic associations to use tax dollars to pay for their stadiums, arenas, or other venues of choice, public subsidies are not the only means to this end, nor are they the most efficient.
The National Football League (NFL) has defended its use of public subsidies for new infrastructure by claiming that new facilities will serve to benefit the public. Promises of economic booms and job growth are typically used to justify the use of public funds for athletic purposes, though the rhetoric rarely matches the reality of the situation.
Last week, San Diego residents took a powerful stand against professional athletic subsidies.
For over a year, the Chargers have been threatening to leave San Diego unless the city agrees to provide a new stadium for the team’s use. Two separate proposals were placed on the ballot for consideration, each promising to raise the hotel tax and accept public subsidies for the construction of a new stadium. Fortunately, both measures were overwhelming rejected by San Diego voters.

This post was published at Ludwig von Mises Institute on Nov 18, 2016.

Gold Holdings Slump Most Since 2013 As Barbarous Relic Tests ’11’ Handle

Gold ETF Holdings have collapsed by 1.93 million troy ounces in the days since Donald Trump’s election. This is the biggest decline since July 2013, a period when gold prices plunged to $1200 before ripping almost 20% higher in the next few weeks.
Bloomberg reports that traders have raised bets on higher borrowing costs following President-elect Donald Trump’s pledge to boost spending and as U. S. data pointed to an improving economy. That helped send a gauge of the dollar to a nine-month high. Investors sold 30.5 metric tons of gold from bullion-backed funds so far this week, the most in three years.
‘It’s all about the dollar,’ said David Govett, head of precious metals trading at Marex Spectron Group Ltd. in London. ‘I suspect we’ll see an 11 handle on gold today,’ he said, referring to prices dropping below $1,200 an ounce.
Holdings in bullion-backed exchange-traded funds dropped for a sixth day, the longest run this year, data compiled by Bloomberg show. They fell 8.5 tons to 1,940.6 tons as of Thursday, the lowest since July.

This post was published at Zero Hedge on Nov 18, 2016.

Four States Vote to Punish Low-Skilled Workers With Minimum Wage Hikes

Last week, a majority of voters in four states approved new mandated increases to the statewide minimum wage.
For those workers whose productivity remains above the newly mandated wages, they will likely keep their jobs and see no change. However, for teenagers, the poorly educated, and others with few skills, the new higher wage will price them out of a job.
In the short term, even some workers with productivity levels below the mandated wage may keep their jobs. For a time. In the medium to long term, however, those workers will either be replaced by automation, or employers will simply cease to hire low-productivity workers.
How to Really Increase Wages As we’ve covered here and here at mises.org, the only way to sustainably increase the wages of workers is to increase their productivity. If a worker’s wages are to go up, there must either be an increase in the demand for that worker’s services, or the worker must be able to produce more in less time.
This is why the industrial revolution brought with it enormous increases in workers wages and standards of living. A single workers could produce far more in the 19th century than he could produce in the 16th century. All that productivity brought with it higher real wages.

This post was published at Ludwig von Mises Institute on Nov 18, 2016.

This Is What The Market Thinks Will Happen To The “Trump Repatriation” Cash

Donald Trump’s election victory has driven significant rotation across global markets. Bond yields are up, the USD has strengthened, DM equities have risen, EM equities have fallen and cyclical stocks have outperformed defensives. Amid the chaos, Citi’s Global Equity Strategy team has attempted to craft some “Trump Trades” to help investors take advantage of the volatility.
While the trade recommendations were not terribly surprising, really just a suggestion that current market rotations will continue, what struck us was the degree to which certain Trump policy ideas, like the repatriation of US dollars from overseas, have already been baked into markets.
Just yesterday we noted that Trump’s repatriation tax holiday had likely contributed to at least some of the USD’s strength over the past week. That said, we also pointed out how misguided that theory was given that most dollars held overseas are actually held in US currency and repatriation, therefore, wouldn’t result in any incremental buying.
Similarly, while many have hailed Trump’s repatriation tax holiday as a positive for U. S. capital investment, per Citi’s latest note, the market has different ideas about how that money will be spent once it reaches domestic shores…share buybacks. In fact, Citi points out that prolific share repurchasers have seen their stocks outperform the broader markets by nearly 5-points since election day. Perhaps, someone should explain that it will probably take a couple of years before this type of legislation can be drafted, passed and implemented? Never mind, just keep buying.

This post was published at Zero Hedge on Nov 18, 2016.

NOV 18/BOND BLOODBATH ACROSS THE GLOBE/HIGHER YIELDS POSE FUTURE PROBLEMS FOR CORPORATES/WE HAVE A HUGE GAIN OF 107,000 OZ OF GOLD STANDING AND THUS IN NOV 8.3 TONNES STANDING/CHINESE YUAN (OFFSH…

Gold closed at $1208.50 DOWN $8.00
silver closed at $16.61: DOWN $0.15
Access market prices:
Gold: 1208.40
Silver: 16.58
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.

This post was published at Harvey Organ Blog on November 18, 2016.

US Bond Market Liquidity Collapses: “It’s Worse Than Brexit”

Two weeks ago we warned of the “unintended consequences” of Dodd-Frank which are likely to crush bond market liquidity. On the day of Brexit we got a glimpse of what can happen when the world’s most liquid bond market suddenly isn’t and as one veteran bond trader exclaimed today, US Treasury market liquidity is “worse than Brexit.”
Following the worst two-week loss for bonds… ever…

The bond-market rout triggered by Donald Trump’s election victory has also crimped investors’ ability to trade, according to a Bloomberg index measuring how much U. S. government-bond yields are deviating on average from a fair-value model. By that measure, the deterioration of liquidity in Treasuries has been the most severe since the U. K.’s June vote to exit the European Union…

This post was published at Zero Hedge on Nov 18, 2016.

Reversal Rates Are the Next Big Challenge for Central Banks

Negative and ultra-low interest rates have become the norm for the developed world. The phrases ‘lower for longer’ and ‘new normal’ are now accepted as facts rather than predictions. But, how low is too low?
For many developed world economies, rates remain low in order to combat stagnation as growth slows. Negative rates are a side effect of these deep, fundamental economic issues.
That brings up some big questions: How low? And for how long?
New research by Markus K. Brunnermeier and Yann Koby addresses this issue. They’ve tried to determine the point at which lower policy rates lose their stimulative effect.
Their research shows that lowering interest rates too far can be contractionary instead of stimulative. And the consequences are profound.

This post was published at Mauldin Economics on NOVEMBER 18, 2016.

The U.S. Silver Market Experienced Two Significant Developments In August

According to the USGS most recent report, the U. S. silver market experienced two significant developments in August. From the data published in the USGS August Silver Mineral Industry Survey, U. S. silver production declined significantly while silver imports surged to near record highs.
First, U. S. silver production in August is down a stunning 14% compared to the same month last year and down 10% versus the previous month:

This post was published at SRSrocco Report on November 18, 2016.

Trumpgasm Sends Stocks To Longest Win Streak In 13 Years Despite Currency, Curve, & Credit Carnage

Collapsing currencies, bond bloodbaths, soaring cost of funds, and crumbling crude… Fuck that! Stock indices are at record highs!!!!

Some context for the recent moves…
Russell 2000 Biggest 2 week gain since July 2009 Dow Biggest 2 week gain since Dec 2011 S&P Biggest 2 week gain since Oct 2014 EURUSD Longest win streak since Lehman (Oct 2008) Dollar Index Biggest 2 week gain since Lehman (Oct 2008) US Treasury Bond Biggest 2 week loss since Jan 2009 Global Bonds Biggest 2 week loss EVER Gold Biggest 2 week loss since June 2013 Copper Biggest 2 week gain since Feb 2010 Which leaves asset classes at extremes…


This post was published at Zero Hedge on Nov 18, 2016.

Credit Suisse Suspends Issuance Of “Mom And Millennials” Favorite 3x Levered Oil ETFs

With plain vanilla equities increasingly shunned by most retail investors for various reasons, an interesting transition was observed in the past year: Mom and Millannial traders have became “the new oil traders.” The WSJ even had an article profiling this astounding shift in May.
For some individual investors, crude is the new hot trade. Oil in the U. S. fell to its lowest level since 2003 in February but has surged roughly 90% since then. On Thursday, it traded above $50 a barrel for the first time since October, before easing Friday. That compares with a stock market that has offered nowhere near that momentum.’ I just thought, let’s throw a couple of hundred dollars in it…and try it out,’ said Matt Krasnoff, 26, of New York, who bought shares of UWTI last year after hearing about it from a friend. ‘I just enjoy the risk and the thrill of the market in general.’
Call them America’s Mrs. Watanabes: bored, amateur commodity traders who look at momentum, and bet on a direction: in a world with countless ETFs and ETNs, all of which are accessible on their iPhones, it’s literally just pushing a button. Of course, it’s their right to lose their money as they see fit, however the real news was the article’s focus on the products there amateur traders use to bet on whether oil would go up or down:
‘The swings are gigantic lately,’ she said of the product, known by its ticker UWTI, and the other energy products she has traded in recent months.

This post was published at Zero Hedge on Nov 18, 2016.

How the Trump Tax Plan Will Affect Your Wallet

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
The Donald Trump tax plan might be welcomed by taxpayers…
According to what Trump has outlined so far, Americans will be contributing less of their paycheck to the government. In addition, Trump has said he wants to make it easier for taxpayers to file their taxes without having to rely on tax preparation companies like H&R Block Inc. (NYSE: HRB).
Here’s a breakdown of how the Trump tax plan affects your wallet…

This post was published at Wall Street Examiner by Cameron Saucier ‘ November 18, 2016.

Are Traders Getting A Little Too Comfortable In Stocks?

Via Dana Lyons’ Tumblr,
Near-term volatility expectations have plunged to record lows.
Trader sentiment has officially come full circle following the election. On November 1, we observed that ‘Investors Are (Over?-)Prepared For Election Volatility’. Our evidence was that the 9-Day S&P 500 Volatility Index (VXST) was trading at near-record levels relative to the 1-Month Volatility Index (VIX). At its peak, the VXST/VIX Ratio would hit 1.35. That marked the 2nd highest reading in the VXST’s 3-year history, trailing only August 21, 2015 (when the S&P 500 was essentially crashing). We thought this reading to be quite odd considering the rather pedestrian decline in the market. As they often temporarily do, these traders indeed got the short-term volatility they were looking for (if only overnight on election night). But that volatility vanished as quickly as it arrived.
On November 11, 2 days after the election, we wrote a post titled ‘Traders Breath Unprecedented Sigh Of Relief Following Election’. The impetus here was the fact that the VXST/VIX ratio, as well as the VIX/VXV (3-Month VIX) ratio, each saw their largest daily drop ever on the November 9 election day. In other words, traders had seen their relative comfort level improve faster than any other date in history.

This post was published at Zero Hedge on Nov 18, 2016.

Anarchast: The Anarcho-Capitalist Perspective on India, War on Cash, Gold and Bitcoin

Anarchast Ep.317
Jeff interviews Balasubramanian S of Cambridge certified TATVA School, Chennai, India, in light of the recent removal of the 500 and 1000 rupee notes and the severe and tragic consequences of this disastrous government intervention. Topics include: the schools system in India, government education, children learn well if you teach them well, demonetization in India, removal of the 500 and 1000 rupee notes, moves to greater surveillance and control, high taxation and growing, Indian cash real estate industry, ATMs either closed or have very long lines, a monthly cash limit, hitting the local economies hard, the role of gold in India, gold very much part of the culture, gold now highly regulated, Bitcoin still to take off in India.
The Dollar Vigilante


This post was published at Dollar Vigilante on NOVEMBER 18, 2016.

China Warns It Is Ready To Slow Yuan Plunge On Capital Outflow Fears

It was just one year ago when the biggest worry for the market – which culminated with a near 10% S&P correction in in early 2016 – was the daily plunge in the Yuan driven by the surging dollar, which in turn prompted China to engage in an unprecedented reserve liquidation (in which it sold both government bonds and equities), leading to a daily selloff in risky assets on days when the Yuan was fixed lower.
Fast forward a year later, when the US Dollar has blown through last year’s highs and is now at levels not seen since 2003, the Yuan is trading at record lows, just shy of 7.00, and yet stocks stubbornly ignore the one catalyst that led to so much headache for the bulls one year ago.
In his daily note, RBC’s cross-asset strategist Charlie McElligott points out that while the market may be oblivious, what is taking place in China is something to be concerned about: ONE IMPORTANT TACTICAL MACRO POINT WITH REGARDS TO THE NEAR-TERM DIRECTION OF USTs / GLOBAL LONG-END: The yuan ‘slow bleed’ devaluation by the PBoC versus the USD seen since the start of October has without question been tied to at least some of the weakness in the US long-end, as the central bank sells USTs to try and mitigate the depreciation of the yuan against the SDR basket – see here:

This post was published at Zero Hedge on Nov 18, 2016.