Party Like It’s 1999: The Stock Market Is A Propaganda Tool

The degree and level of propaganda now flowing from the Establishment and the Establishment-controlled mainstream media is on par with that of the old Soviet Politburo or German Third Reich. In fact, I’d confidently propose that this point is incontestable.
With modern technology and regulations which have made Fed operations and accountability tragically opaque, I have zero doubt that the Fed and the Government have managed to turn the stock market into another propaganda tool. Studies have shown that, over the short term, the direction of the stock market and consumer sentiment measures are highly correlated.
Thus, pushing the stock market a lot higher is a mechanism that can be used to influence the public’s sentiment and willingness to spend. This is critical after an election in which the political party controlling Capitol Hill changes and – more important – during the holiday shopping season.
Without question the U. S. economy is beginning to quickly crumble. If you ‘peel away’ the manipulative techniques applied to the economic reporting it reveals that every segment of the economy is now contracting. Even the factory orders report for October released yesterday – which showed a 2.7% gain over September – is still down 2.3% YTD vs the same YTD period in 2015. Strip away the transportation component and it’s down 2.7%.

This post was published at Investment Research Dynamics on December 7, 2016.

FBI Probes HuffPo Editor After “Destroy Trump Ballots” Tweet

Huffington Post’s Senior Enterprise Editor, Nick Baumann, sent a tweet just over a month ago that he probably wishes he could take back…or maybe not, they say there’s no such thing as bad publicity after all.
The following tweet was sent by Baumann on Halloween and references destroying Trump ballots at a Washington D. C. polling station. Unfortunately, while Baumann said the whole thing was just a “joke about fake news,” the FBI took it a bit more seriously.
@lachlan i love my job working at a voting site in washington dc destroying trump ballots
— Nick Baumann (@NickBaumann) October 31, 2016

Just 4 days later, according to an article published by Baumann today on Huffington Post, he received a call from the FBI to followup on his tweet. While he dismissed the call as a “prank” by a disgruntled reader (of which we’re sure he has many), it turned out to be quite real.

This post was published at Zero Hedge on Dec 7, 2016.

Trump Picks Pro Wrestling Mogul Linda McMahon To Run Small Business Administration

While some of Trump’s previous administration picks have raised an eyebrow or two in the past two weeks, his choice of Linda McMahon, pro wrestling mogul and wife of WWE legend Vince McMahon, to head the Small Business Administration will likely be his most scrutizined yet.
McMahon had previously been floated as a potential appointee due to her ties to GOP causes and Trump personally, as well as Trump’s history of appearances at WWE pro wrestling events.
McMahon, who lives in Connecticut, is a veteran of the state’s board of education. She also ran for Senate as a Republican in the state twice, losing to Sen. Richard Blumenthal (D) in 2010 and Sen. Chris Murphy (D) in 2012.
Here is the full statement from the Trump team:
President-Elect Donald J. Trump Intends to Nominate Linda McMahon to Serve as the Administrator of the Small Business Administration

This post was published at Zero Hedge on Dec 7, 2016.

Jamie Dimon Named Chairman Of Business Roundtable Scoring Another Key D.C. Post For Wall Street

Just days after being appointed to Trump’s “Strategic and Policy Forum,” JP Morgan CEO, Jamie Dimon, has been named Chairman of Business Roundtable. Obviously, this is yet another prominent D. C. position for Wall Street just as Trump gets set to take the White House amid promises to “drain the swamp.”
Per a press release posted to the Business Roundtable website, Dimon will take over the Chairman position from Doug Oberhelman, the CEO of Caterpillar, and will serve a two-year term that will last through December 21, 2018.
‘Jamie is one of the most accomplished business leaders in America,’ Oberhelman said. ‘He is a strong and positive force for sound economic policies and the need for a diverse and skilled workforce. His depth of understanding and optimistic vision of America’s future make him exactly the right person to lead Business Roundtable to work with the new Administration and Congress.’
‘It is an honor to be selected to lead Business Roundtable,’ Dimon said. ‘Given the quality and diversity of its membership, the organization is uniquely positioned to advocate for meaningful solutions that create economic growth and opportunity for all. With a new President and Congress soon to take office, there is a real opportunity for Business Roundtable to be a positive influence and show how business plays a critical role in this growth.

This post was published at Zero Hedge on Dec 7, 2016.

Dismal Jobs Report – Paul Craig Roberts

Dismal Jobs Report
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Paul Craig Roberts
The presstitute media delivered the false news, not from Russian propaganda websites such as the Washington Post accuses this one of being, but from Obama’s US Bureau of Labor Statistics. The false news is that the collapsing economy continues to boom with 178,000 new jobs in November and a further fall in the rate of unemployment to 4.6%.
What are the facts? Nothing you will ever hear from the presstitutes or the corrupt Obama regime.
The facts are that November produced only 9,000 full time jobs, an improvement over the previous month when full time employment declined by 103,000 jobs – another fact that you did not hear about from the presstitutes.
According to the BLS payroll jobs report, the jobs available in November were waitresses and bartenders, temporary help, and ambulatory health care services. These are not the kind of jobs that result in home ownership or an independent existence.
As there are no jobs, which is reflected in the continuing decline in the labor force participation rate, how did the rate of unemployment fall to 4.6%?

This post was published at Paul Craig Roberts on December 7, 2016.

Italy Threatens ECB With Blackmail; Demands More Time For Monte Paschi Rescue

Last night we reported that according to Reuters, with a private bailout off the table now that Italy is in political limbo, a nationalization in the form of a government debt-to-equity bailout of Monte Paschi was imminent, however there was a snag: political opposition from Brussels – which has insisted on a bail-in resolution mechanism instead of a bail out – could scuttle the transaction which is meant to make whole junior bondholders – mostly retail investors – courtesy of other taxpayers. The alternative was to request more time from the ECB, which has previously given Monte Paschi a year end deadline.
Now, according to the FT, we learn that Rome is demanding the ECB give it more time to rescue the third largest Italian bank. That was to be expected, what is surprising, however, is that as the FT adds, Italy is “preparing to blame the bank for losses imposed on bondholders if Rome is forced into an urgent state bailout“, a negotiating tactic some could call blackmail.
Citing four people “close to the issue”, the FT adds that the board of MPS, which has the Italian Treasury as its largest shareholder, is asking the supervisory arm of the European Central Bank to give it until mid-January to pull off a 5bn equity injection and try to avoid forcing losses on some debtholders as required under new EU bailout rules. In a letter to the ECB, MPS says political instability unleashed by the resignation of prime minister Matteo Renzi following his defeat in Sunday’s referendum has made it impossible to get the deal done until a new government is formed, these people say.

This post was published at Zero Hedge on Dec 7, 2016.

DEC 7/HUGE 6.23 TONNES OF GOLD LEAVE THE GLD HEADING FOR SHANGHAI/NO CHANGE IN SILVER INVENTORY AT THE SLV/SHANGHAI PREMIUM OVER $26.00 PER OZ AT THE SGE GOLD FIX/ALMOST 70 BILLION USA LEAVES CHI…

Gold at (1:30 am est) $1175.00 up $7.40
silver at $17.20: up 46 cents
Access market prices:
Gold: 1174.10
Silver: 17.15
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:
WEDNESDAY gold fix Shanghai
Shanghai morning fix Dec 7 (10:15 pm est last night): $ 1193.75
NY ACCESS PRICE: $1169.30 (AT THE EXACT SAME TIME)/premium $24.45
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1194.69
NY ACCESS PRICE: 1168.40 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $26.29
China rejects NY pricing of gold as a fraud
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: Dec 7: 5:30 am est: $1171.25 (NY: same time: $1171.95 5:30AM)
London Second fix Dec 7: 10 am est: $1177.65 (NY same time: $1178.70 10 AM)

This post was published at Harvey Organ Blog on December 7, 2016.

This Is What Happens When A Buying Algo Gets Excited

A reference point: W&R sold 75,000 over 20 minutes, and the first ~35,000 supposedly caused the flash crash (wink) — Eric Scott Hunsader (@nanexllc) December 7, 2016

At 13:21:15 this afternoon, as the Dow Transports was pushing towards its record highs (for the first time in 2 years), S&P futures and the SPY ETF suddenly exploded in volume and ramped higher.
In those few seconds 2 million SPY shares went through (around $450 million)…

This post was published at Zero Hedge on Dec 7, 2016.

Cisco CEO Chuck Robbins: An Idiot Or A Liar, You Decide…

So today on CNBC Cisco CEO, Chuck Robbins explained that if they were to repatriate their offshore cash back to the US he would use the money to reward shareholders through buybacks and dividends and then do some M&A.
He claims cash distribution to shareholders in lieu of actual economic-stimulating investments creates jobs by way of mutual funds, which make the soon to be out of work Americans from his M&A activity feel good about their income….
I mean where does one even begin picking apart this absurdity of logic?? It probably is not even worthy of a detailed response. But I wanted to note, on record, that these are the type of moronic and asinine thought processes coming out of corporate America that are killing the American middle class and will destroy even most on top unless the bottom 80% are handed a stipend to go out and buy products produced by corporations. If Chuck truly believes what he says, well he is an idiot. If he has even a shred of economic acumen then he is a liar. I’ll leave it to you to decide.

This post was published at Zero Hedge on Dec 7, 2016.

What’s Behind The Relentless Market Surge? RBC Explains

Confused by the relentless surge in stocks, which appear to have collectively decided to have no more down days as they ramp higher day after day as VIX crashes, and may soon see single digits? Here is one theory courtesy of RBC’s head of cross-asset strat, Charlie McElligott.
DATA AND TRUMP KICKING-UP ‘ANIMAL SPIRITS,’ AGAINST SIGNS OF Y. E. GROSS-DOWNS
The pause in the rates trajectory continues to be extraordinarily ‘tame,’ as many have been anticipating a sharper ‘counter-trend rally’ which has yet to occur. One thought here is the ongoing situation with Chinese outflows, with data overnight showing their FX reserves dropping the most in 10 months…as such we see the Yuan at 8 year lows against the Dollar. The rhetoric and twitter-barbs from Trump regarding the potential to paint China as a currency manipulator, along with the Taiwan phone-call faux paus, continue to agitate the situation.
It is certainly reasonable to believe that this source of UST selling will continue to keep USTS rallies ‘limp,’ and still in front of a very pro-growth / reflationary Trump policy mix to come: lower corporate and individual taxes, industry deregulation, trade policy (tariffs will drive up domestic prices as cheaper international goods competition is removed) and a fiscal policy shift away from monetary policy will all conspire to take rates higher in the year window ahead.

This post was published at Zero Hedge on Dec 7, 2016.

Here’s what happens when a currency completely breaks down

In Venezuela, hyperinflation has become so pitiful that shopkeepers are no longer bothering to actually count money.
Instead, they’re weighing it…
… as in literally pulling out a scale and weighing giant stacks of money. Do you want to buy a bottle of Coca Cola? That’ll be 1 kilo of currency please.
One shopkeeper interviewed by the Guardian newspaper said he’s piling up bricks of cash so quickly he feels like Pablo Escobar.
And yet Venezuela’s hyperinflation continues growing worse; those bricks of cash are buying less every week.
This is an important lesson.
Throughout history, human beings have used countless forms of money.
Many of the ancients used commodities like silver or salt. The feudal Japanese used rice. The island natives of Yap used enormous stone wheels.
Today we use physical pieces of paper and electronic digits in a bank account. Large financial institutions and governments use bonds.
Each of these is (or was) a form of money.
But regardless of the form, money is only credible as long as everyone agrees that it has value, i.e. there’s a large enough market size of people willing to use it.
This fundamentally comes down to trust and confidence.

This post was published at Sovereign Man on December 7, 2016.

David Rosenberg Throws Up On The “Trump Rally” – Here’s Why

When I was on CNBC on Monday afternoon, the discussion was over this stellar stock market performance of the past month, otherwise known as the ‘Trump Rally.’
Let’s examine it a little closer, if you don’t mind.
No doubt there have been stellar performances among the two sectors that stand to benefit most from the ‘D’ word (deregulation): financials and energy. These were the two sectors that were on the long list for a long time in the event of a Trump victory.
Both have lived up to their billing, having advanced 14.1 per cent, and 7.0 per cent, respectively, since the election. These two sectors, representing just over 20 per cent of the S&P 500 market cap, have accounted for all the gains since then. The other 80 per cent of the stock market is flat as a pancake.

This post was published at Zero Hedge on Dec 7, 2016.

Trump Picks Iowa Governor Branstad As US Ambassador To China, Beijing Calls Him “Old Friend”

As reported in Frontrunning, President-elect Donald Trump will nominate Iowa Governor Terry Branstad as the next U. S. ambassador to China, choosing a longstanding friend of Beijing after rattling the world’s second-largest economy by speaking to Taiwan’s president. Earlier in Beijing, Foreign Ministry spokesman Lu Kang called Branstad an “old friend” of China when asked about a report on the appointment, although he added Beijing would work with any U. S. ambassador.
The appointment of Branstad will likely ease trade tensions between the two countries, the world’s two biggest agricultural producers, diplomats and trade experts said according to Reuters. It also suggests that Trump may be ready to take a less combative stance towards China than many expected, the experts said.
“We welcome him to play a greater role in advancing the development of China-U. S. relations,” he told a daily news briefing. Branstad has likewise called Chinese President Xi Jinping a “longtime friend” when Xi visited Iowa in February 2012, only nine months before he became the Chinese leader.

This post was published at Zero Hedge on Dec 7, 2016.

Goldman Sachs’ Covert Scheme to Raise Oil Prices

The elite predictors at Goldman Sachs have it all figured out again…
You know the global economic growth rate that’s stuck around a soft 3%?
Well, they have the solution to goose it higher.
What the world needs now are higher oil prices.
You read that right.
Goldman now tells you that higher fuel costs for businesses and consumers are actually good for global growth.
What they didn’t tell you is they’re even better for Goldman’s bottom line…
False Narratives
According to Bloomberg, Goldman’s analysts believe that pricier crude oil means economies like Saudi Arabia’s will take in more money than they can spend. This excess will trickle down through the financial system to the rest of the world.
Supposedly this will lead to more financial liquidity, lower interest rates, higher asset values and greater consumer confidence.
Doesn’t that sound great? Maybe to Goldman…

This post was published at Wall Street Examiner on December 7, 2016.

Asian Metals Market Update: December-7-2016

This year I have been totally wrong in long term projections for gold and silver. I expected gold to top $1520 which failed as India adopted demonetization. I expected Indian silver prices to rise to Rs.53000 per kilogram on Diwali day. Another big flop projection. Clients made money by investing in copper, zinc, lead and natural gas. Short term trades in crude oil were accurate over eighty percent of times. What I learned is when fundamentals turn weak for any metal or energy, despite bullish momentum and bullish technical, the rising trend will reverse sooner than later.
I call Nickel and Gbp/usd as kingmaker/widowmaker as the case may be. One bad trade in nickel or gbpusd and you are busted for life and in some cases even causes mental instability. On the day when gbpusd got busted all long position holders suffered capital losses. To me the copper, usdjpy and jpyinr were the safest for intraday trades as well as medium term trades. (Please note I do not recommend long term investment for non delieverable trades).

This post was published at GoldSeek on 7 December 2016.

Chinese Reserves Tumble By $69 Billion, Biggest Drop Since January

While in recent months, the PBOC had tried to mask the real pace of reserve outflows, covering up the accelerated selling of US-denominated assets to defend its rapidly devaluing currency, we noted in October that using more accurate calculations, China’s capital outflows are once again surging, having hit $78 billion in September. Overnight, China, unable to continue “covering up” its reserve state, disclosed that, as we warned, FX reserve liquidation had soared with total reserves falling by nearly $70 billion last month as the country’s central bank burned through more of its reserves in the fight to defend the renminbi from greater depreciation on the back of accelerating capital outflows. This was the largest decline since January.
PBOC’s total reserves declined by $69.1 bilion to $3.051 trillion in November, a decline of 2.2 per cent from the previous month and the largest drop since January’s fall of 3 per cent. A median forecast from economists had predicted a fall of only 1.9 per cent from October.

This post was published at Zero Hedge on Dec 7, 2016.

I’ve Never Seen an Earnings Collapse Like This – Time to Move

I’ve spent years studying junk bond issuers, so I always get suspicious when I see a restaurant company, of all things, trading at high multiples of earnings, cash flow, or debt.
The restaurant business is notoriously risky, you see; there are few barriers to entry, fickle and economically sensitive consumers are at every turn, and it’s extremely difficult to maintain high quality at any point on the price spectrum.
Still, it’s not often you find a grossly overvalued (and overripe) company lying smack in the middle of the intersection of every single one of these very specific woes.
Yet that’s exactly what I’ve found here.
In fact, I’ve just issued detailed trading instructions for profiting on this clunker to my Zenith Trading Circle readers, but this company is in such bad shape – such a perfect example of almost everything wrong with Corporate America today – that I had to let everyone know, so you can get the chance to profit now and later on if a similar situation unfolds again.
Let’s have a look at what my research has turned up – so long as you’ve got an empty stomach…

This post was published at Wall Street Examiner on December 7, 2016.

Gold and Silver Market Morning: Dec 7 2016 – Gold and Silver moving to narrowing range ahead of a strong move!

Gold Today – New York closed at $1,169.10 yesterday after closing at $1,176.50 on the 5th December. London opened again at $1,171.00today.
Overall the dollar is slightly stronger against global currencies today.
– The $: was slightly stronger at $1.0728: 1 from $1.0739: 1 yesterday.
– The Dollar index was weaker at 100.50 from 100.32 yesterday.
– The Yen was slightly weaker at 114.15: $1 from yesterday’s 114.04 against the dollar.
– The Yuan was slightly weaker at 6.8839: $1 from 6.8802: $1 yesterday.
– The Pound Sterling was weaker at $1.2614: 1 from yesterday’s $1.2754: 1.
Yuan Gold Fix
Once again Shanghai prices are pretty stable sitting around $21 higher than New York and $19 above London’s opening [allowing for the difference in the quality of gold priced in the different markets].
With Chinese prices stable at higher levels, it appears that when speculators sell without the backing of physical gold sales prices in Shanghai ignore New York’s prices. Shanghai therefore appears less dependent on the other global gold markets as it walks its own physical gold road. Once U. S. ETF sales halt we should see Shanghai prices take a more dominant role.

This post was published at GoldSeek on 7 December 2016.

Clinton Throws Thank You Party For Millionaire Donors As Trump Resumes “Thank You” Tour

The 2016 general election, explained. pic.twitter.com/oPZm8Roi9m
— T. Becket Adams (@BecketAdams) December 6, 2016

For a vivid glimpse in the philosophies of the two presidential candidates, look no further than what the two have done after winning, in the case of Trump, and losing, in Hillary’s case, the election.
Following several meetings at the Trump Tower, the President-elect resumed his ‘thank you’ tour with a second stop on Tuesday night in North Carolina, less than a week after his return to rallies at an Ohio appearance.
At that Cincinnati stop, Trump again slammed the ‘dishonest’ media, inspired loud ‘Build the wall’ chants, and took swipes at fellow Republicans and stunned his own aides with his surprise announcement from the stage that that he was appointing retired Gen. James Mattis as secretary of defense. Mattis’ selection was being formally announced Tuesday, and Mattis will appear with Trump at the evening event in Fayetteville, Vice President-elect Mike Pence said on MSNBC’s ‘Morning Joe.

This post was published at Zero Hedge on Dec 7, 2016.