Hollande Bows Out in France – He Will Not Run

Well the emails are pouring in already since our post on the upcoming French elections where our model was showing that ‘Clearly, the socialists are finished.’ We further stated: ‘They made a two election come back, but that was just a reaction reaching 51.63% compared to their peak at 51.76% in 1981. This suggests they will possibly be out of the final run or this will be their very last time. The 2017 election may simply be Conservatives v FN in 2017.’ We warned that our model was shaping up to be a confrontation between the Conservative candidate Francois Fillon and the FN candidate Marine Le Pen.

This post was published at Armstrong Economics on Dec 2, 2016.

Trump End the Fed? One Loophole, Two Stunning Predictions…

‘OK, look,’ Trump said during a presidential debate, ‘we have the worst revival of an economy since the Great Depression.
‘Believe me, we’re in a bubble right now. The only thing that looks good right now is the stock market and if you raise interest rates even a little bit, that’s going to come crashing down. We are in a big, fat, ugly bubble.’
Although his habit of saying ‘Believe me’ before everything he says (as if that’s proof enough) can get tiresome, he’s not wrong.
The bubble is big. The bubble is fat. The bubble is ugly.
Trump then dared say the name which… in polite crony circles… dare not be spoken, especially not in front of the unwashed masses: ‘And we have,’ he said, ‘a Fed that’s doing political things.’
Yes, he’s been critical about the Federal Reserve. And he’s even made mention of going back to the gold standard.

This post was published at Laissez Faire on Dec 2, 2016.

Sudden Scramble For Gold In China Sends Premiums To 3 Year High

While paper gold traders can’t seem to dump the precious metal fast enough, physical gold demand is soaring around the world. India retail premiums are spiking (amid demonetization), local China premiums soar to a 3-year-high (as capital controls loom), and coin sales from the US Mint have risen for the 4th straight month, accelerating post-election to thehighest since July 2015 since Trump’s victory at the election.
Following the initial panic-buying across India after Modi’s demonetization effort shook the nation’s faith in fiat currency (sending local gold premiums soaring), news of reported gold import curbs in China (and looming capital controls) has sent gold premiums in China near three-year highs amid limited supply of the precious metal (as Reuters reports)…
The import curbs may be part of China’s efforts to limit outflows of the yuan after the currency’s slide to its weakest in more than eight years, traders say. China allows only 15 banks to import gold, including three foreign lenders.

This post was published at Zero Hedge on Dec 2, 2016.

Investors Push Gold Eagle Sales To Record High & Commentary On Precious Metals Sentiment

Investment demand for Gold Eagles surged during the last day in November pushing sales to a new monthly record. Not only did Gold Eagle sales for November reach a new record high for the year, it surpassed sales during the same month last year by 52%.
It seems as if investors are once again taking advantage of lower gold prices. I had planned to publish the article on Wednesday (last day of the month) showing that November sales hit a new record high, but the U. S. Mint updated their figures yesterday reporting another 20,000 Gold Eagles oz were sold on the 30th.
So, as of Nov 29th, the U. S. Mint Gold Eagle sales reached a new high for the year of 127,500 oz. Then they sold another stunning 20,000 oz in one day for a total of 147,500 Gold Eagle oz for November:

This post was published at SRSrocco Report on December 2, 2016.

Trump Risks Major Diplomatic Scandal With China Following Taiwan Phone Call

Ever since the US adopted a ‘One China’ policy after the 1972 Nixon-Mao meetings, followed by President Carter formally recognizing Beijing as the sole government of China in 1978 leading to the closure of the US embassy in Taipei one year later and cutting off relations with Taiwan, when it comes to US-China diplomacy Washington has maintained a steady posture when it comes to Taiwan: non-recognition.
That changed today, when as the Trump team reported, following nearly four decades of diplomatic non-contact, the president-elect held a phone conversation with the president of Taiwan, Tsai Ing-wen, who offered Trump her congratulations, and during which “they noted the close economic, political and security ties” that exist between Taiwan and the United States.

Oops.
Perhaps Trump was confused, and thought he was chatting with the president of the People’s Republic of China, also known as China, instead of the Republic of China, better known as Taiwan, but whatever the reason, Trump now risks a major diplomatic scandal with China – before he has even been inaugurated – as a result of his phone call with the president of Taiwan, which China regards as a renegade province. As the FT accurately notes, “although it is not clear if the Trump transition team intended the conversation to signal a broader change in US policy towards Taiwan, the call is likely to infuriate Beijing.“

This post was published at Zero Hedge on Dec 2, 2016.

China Warns U.S.: Stop Trying to Escape Your Trade Obligations

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
China warns the U. S. once again…
This time about a World Trade Order (WTO) deal reached way back in 2001…
That’s when WTO members all agreed to treat Beijing as a ‘non-market economy’ until the arrangement officially expired – at which point China would then be upgraded to a ‘market economy.’
There’s a big difference between those two distinctions:
Liquidity moves markets!
Click here to learn how you can follow the money. A ‘market economy’ consists of private ownership of the means of production and of voluntary exchanges and/or contracts for goods. Competition in these economies is high, which makes goods production, as well as the value of goods themselves, significantly cheaper. On top of that, foreign investors often flock to ‘market economies’ because they bolster innovation, which, in turn, boosts profits. A ‘non-market economy’ consists of operations that are not market-based. Therefore, its prices for final goods do not reflect fair value. Government provision of goods – arguably on an even basis – typically occurs within ‘non-market’ economies – i.e., communist or socialist economies.

This post was published at Wall Street Examiner by Money Morning Staff Reports ‘ December 2, 2016.

DEC 2/A MASSIVE 13.64 TONNES OF GOLD LEAVES THE GLD: PROBABLE DESTINATION SHANGHAI TAKING ADVANTAGE OF THEIR HUGE PREMIUMS/A TINY 155,000 OZ OF SILVER LEAVES TO PAY FOR FEES/ HUGE WITHDRAWAL = GO…

Gold at (1:30 am est) $1175.10 up $8.20
silver at $16.75: up 32 cents
Access market prices:
Gold: 1176.50
Silver: 16.74
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
.
The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning
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:
THURSDAY gold fix Shanghai
Shanghai morning fix Dec 2 (10:15 pm est last night): $ 1197.17

This post was published at Harvey Organ Blog on December 2, 2016.

House Quietly Passes Bill Targeting “Russian Propaganda” Websites

On November 30, one week after the Washington Post launched its witch hunt against “Russian propaganda fake news“, with 390 votes for, the House quietly passed “H. R. 6393, Intelligence Authorization Act for Fiscal Year 2017“, sponsored by California Republican Devin Nunes (whose third largest donor in 2016 is Google parent Alphabet, Inc), a bill which deals with a number of intelligence-related issues, including Russian propaganda, or what the government calls propaganda, and hints at a potential crackdown on “offenders.”
A quick skim of the bill reveals “Title V – Matters relating to foreign countries”, whose Section 501 calls for the government to “counter active measures by Russia to exert covert influence … carried out in coordination with, or at the behest of, political leaders or the security services of the Russian Federation and the role of the Russian Federation has been hidden or not acknowledged publicly.’
The section lists the following definitions of media manipulation:
Establishment or funding of a front group. Covert broadcasting. Media manipulation. Disinformation and forgeries. Funding agents of influence. Incitement and offensive counterintelligence. Assassinations. Terrorist acts. As ActivistPost correctly notes, it is easy to see how this law, if passed by the Senate and signed by the president, could be used to target, threaten, or eliminate so-called ‘fake news’ websites, a list which has been used to arbitrarily define any website, or blog, that does not share the mainstream media’s proclivity to serve as the Public Relations arm of a given administration.

This post was published at Zero Hedge on Dec 2, 2016.

The Shocking Truth About How Barack Obama Was Able To Prop Up The U.S. Economy

Barack Obama is one of the biggest ‘Keynesians’ of all time, but unfortunately most Americans don’t even understand what that means. In this article, I am going to share with you the primary reason why Barack Obama has been able to prop up the U. S. economy over the past eight years. If Barack Obama had not taken the extreme measures that he did, we would be in the midst of a historic economic depression right now. But by propping things up in the short-term, he has absolutely demolished our long-term economic future. But like most politicians, Obama has been willing to sacrifice the future for short-term political gain.
If you take any basic college course in economics, you are going to learn about John Maynard Keynes. Without a doubt, Keynes was one of the most famous economists of the 20th century, and one of the things that he believed was that governments should go into debt and spend more money when an economic downturn strikes. By injecting additional funds into the economy during a time of crisis, he believed that the severity of recessions and depressions could be reduced. This approach ultimately become known as ‘Keynesian economics’, and in the post-World War II era virtually the entire world embraced it at least to some degree. Here is more on Keynes from Investopedia…

This post was published at The Economic Collapse Blog on December 2nd, 2016.

Rate Hike Fever: ‘Everybody is Getting Tarred and Feathered’

This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
Another day, another record close for the Dow.
The stock market continues to hum along as we dig into the final month of a tumultuous year.
But in a dramatic shift, investors are shunning former market leaders in favor of beaten-down bank and industrial stocks. While the Dow Jones Industrial Average added nearly 70 points yesterday, the Nasdaq Composite dropped more than 1.3%.
It’s the biggest market theme since the presidential election: Money continues to pour out of some of the best performing stocks of the past two years and into the forgotten corners of the market.
The divergences are growing as the trading week comes to a close. The Nasdaq has dropped to its lowest close since November 14. Tech stocks have been a huge drag on the Nasdaq and the S&P 500. Meanwhile, the Dow continues to climb. It’s up nearly 5% since the election, compared to a gain of a little more than 1% for the Nasdaq Composite…

This post was published at Wall Street Examiner by Greg Guenthner ‘ December 2, 2016.

Tech, Small Caps Suffer Worst Week In 10 Months As Trump Hangover Hits

Everyone’s doing it, just follow them…

An interesting week:
Nasdaq’s worst week since Feb 2016 Small Caps worst week since Feb 2016 Bank stocks up 4 weeks in a row to highest since Jan 2008 FANG Stocks down 4 of the last 6 weeks Treasuries down 4 weeks in a row, TLT lowest close in a year USD Index down first time in 4 weeks Oil’s best week since Feb 2011 (at highest since July 2015) Gold down 4 weeks in a row to 10 month lows Stocks on the week stunned investors, with Small Caps and Nasdaq suffering their worst weeks since Feb 2016 (and Dow and Trannies clung to unch)


This post was published at Zero Hedge on Dec 2, 2016.

Weekend Reading: Trumponomics

Submitted by Lance Roberts via RealInvestmentAdvice.com,
What a change a couple of weeks can make. As my colleague, Michael Lebowitz, wrote this past week:
‘Following Donald Trump’s surprise victory and the violent market reactions, many investors are left scratching their heads. As shown above, the consensus narrative warned that a Trump victory would spell doom for the markets. Days later, the narrative flipped and Trump’s economic policies, all of which were known prior to the election, are deemed beneficial for share prices.’ The question which remains, however, is whether tax reform and infrastructure spending will have the impact the markets are currently betting on?
As I penned in yesterday’s missive: ‘The problem for Trump is that we no longer reside in the 80’s where a large group of ‘baby boomers’ were entering the workforce and driving a massive wave of innovation and productivity changes. Today, we are on the wrong side of the demographic trends combined with falling productivity and labor force growth.’

This post was published at Zero Hedge on Dec 2, 2016.

Countless Ordinary Americans Benefit When Companies Move to Mexico

Matt Drudge has been applauding Donald Trump’s efforts at preventing companies from locating their production facilities to foreign countries.
When Carrier announced it would not be moving 1,000 positions to Mexico, the Drudge headline read:
“AMERICA GREAT AGAIN: CARRIER STAYS …“
Drudge carried a similar headline when Trump claimed credit for Ford Motor Company’s announcement that it would not be moving the production of a Lincoln SUV to Mexico. Ford does plan to move forward with moving more small-car production to Mexico in spite of the fact that Trump had earlier promised to slap a 35 percent tariff on auto imports from Mexico.
Unfortunately, the Drudge headlines are simply helping to perpetuate simplistic ideas of how wealth is built, and forwards the idea that free trade and free movement of capital somehow make most Americans poorer.
Indeed, it seems that most pundits and news organizations are treating it as a given that keeping auto production or air conditioning production within the borders of the United States is an automatic “win.”
Most of the criticism of the Trump Carrier deal has focused on the politics and legality of the deal. Some have even claimed that Carrier was essentially bought off with “subsidies” from the State of Indiana, and possibly the federal government as well.

This post was published at Ludwig von Mises Institute on Dec 2, 2016.

More BLS BS

By Craig Hemke
Last weekend, the Washington Post reported a new, McCarthy-type black list of “fake” political news sites. The mainstream reporting of the the current economic news is now so pathetic and biased that there will no doubt soon be a similar list of “fake” economic news sites. The “reporting” of today’s disastrous employment report is just the most example.
Again, we don’t call it the BLSBS for nothing…

This post was published at GoldSeek on Friday, 2 December 2016.

OPEC Deal Could Trigger Drilling Boom In U.S. Shale

Submitted by Nick Cunningham via OilPrice.com,
If anyone is cheering the news of an OPEC deal it is U. S. shale producers. The OPEC agreement sent oil prices shooting up this week, with WTI and Brent quickly surging above $50 per barrel.
Saudi Arabia has agreed to swallow the pain by lowering its oil production, reducing the global surplus to the benefit of everyone else. But it also managed to convince some of its intractable peers to chip in some production cuts, including Iraq, which had previously resisted any cuts. OPEC was even able to bring Russia on board for 300,000 barrels per day in reductions, even though Russia is not an OPEC member.
The result is significant by any measure. OPEC is planning to cut 1.2 million barrels per day beginning in January and non-OPEC producers could add another 600,000 barrels per day in reductions. The global supply-demand balance will likely flip from surplus to deficit when the deal is implemented, and Goldman Sachs sees oil prices rising to $60 per barrel in the first half of next year.
Surely there were champagne corks being popped in Texas as OPEC announced its decision. The share prices of more than 50 U. S. oil and gas companies shot up by more than 10 percent on Wednesday. The S&P 500 Energy Sector Index gained 5 percent, rising to its highest level since mid-2015.

This post was published at Zero Hedge on Dec 2, 2016.

Spot Gold Price Today Climbs and Should Head Higher

The spot gold price today (Friday) is up slightly, 0.23%, after falling steadily throughout the month of November.
Gold prices started the month of November above the $1,300 line but have since fallen to an intraday low of $1,160 yesterday.
While sentiment is getting pretty low, it’s tough to say if we’ve reached a bottom yet.
Some analysts expect gold could retest its $1,050 low of December 2015, while others think it’s close to a bottom right now.
There are some indicators, however, that are pointing to a possible bottom in gold stocks. If that turns out to be the case, then we could also have an early sign of a near-term bottom in gold itself.
Notably, some of the best forecasters in the markets, and for gold in particular, see higher gold prices in the not-too-distant future.

This post was published at Wall Street Examiner on December 2, 2016.

BILL TARGETING ‘RUSSIAN PROPAGANDA’ PASSES IN HOUSE

H. R.6393, Intelligence Authorization Act for Fiscal Year 2017, passed in the House of Representatives on November 30.
The legislation deals with a number of intelligence related issues, including Russian propaganda, or what the government calls propaganda.
Section 501 calls for the government to counter ‘measures by Russia to exert covert influence… carried out in coordination with, or at the behest of, political leaders or the security services of the Russian Federation and the role of the Russian Federation has been hidden or not acknowledged publicly.’
Definitions include media manipulation, covert broadcasting, disinformation and forgeries, and ‘funding agents of influence.’

This post was published at The Daily Sheeple on DECEMBER 2, 2016.