VIX Up, Stocks Up, Bonds Up… Fed Up!

Dow 20,000 teases everyone ahead of The Fed…
Trannies and Small Caps underperformed as The Dow pushed on once again to new record highs (Nasdaq best on the day)
Stocks were spooked in the last few minutes as The ECB denied Monte Paschi’s capital plan…
While The Dow failed to make 20k today, we note it is up over 2000 points from the pre-Trump lows…
With Goldman accounting for over 20% of all those gains…

This post was published at Zero Hedge on Dec 13, 2016.

So Who Gets to Pay for Italy’s Banking Crisis?

The answers are beginning to take shape.
By Don Quijones, Spain & Mexico, editor at WOLF STREET.
‘There is not and there will not be a banking crisis in Italy, nor will there be a European financial crisis coming from Italy.’ Those were the emphatic words of EU Economics Commissioner Pierre Moscovici over the weekend. ‘We have the capacity to deal with the situation and it will be dealt with from both Italy and at the European level’ he told France Info radio.
Clearly, quixotic delusions are as rampant as ever at the loftiest heights of Brussels’ ivory towers. Either that, or things are now so serious that lying is the only tactic left available.
The markets also appear to be in a state of eerie complacence. Since rumors of yet another publicly funded bailout emerged early last week, bank shares have taken off, not only in Italy but across most European markets. Shares of Unicredit, Italy’s only ‘systemically important financial institution,’ has surged 20%, while Italy’s second largest bank, Intesa Sanpaolo, is up 10%.
Once again, just the slightest hint of future government and/or central bank intervention is enough to steady the nerves of today’s welfare-addled investors. For now.

This post was published at Wolf Street on Dec 13, 2016.

40 Electors Demand Russian Interference Briefing Before They Vote

Update: Forty members (up from 29 earlier) of the Electoral College on Tuesday signed a letter demanding an intelligence briefing on Russian interference in the election ahead of their Dec. 19 vote.
As The Hill reports, ten electors originally signed the letter when it was published Monday, and 30 more have since added their names.
Original 10:
Christine Pelosi (CA) Micheal Baca (CO) Anita Bonds (DC) Courtney Watson (MD) Dudley Dudley (NH) Bev Hollingworth (NH) Terie Norelli (NH) Carol Shea-Porter (NH) Clay Pell (RI) Chris Suprun (TX) Newly Added Electors:
Edward Buck (CA) Donna Ireland (CA) Vinz Koller (CA) Katherine Lyon (CA) John P. MacMurray (CA) Andres Ramos (CA) Gail Teton-Landis (CA) Olivia Reyes-Becerra (CA) David Scott Warmuth (CA) Gregory H. Willenborg (CA) Jerad Sutton (CO) Robert Nemenich (CO)

This post was published at Zero Hedge on Dec 13, 2016.

New Silver Price Prediction for After the FOMC Meeting

After the FOMC meeting on Dec. 13-14, our new silver price predictionshows the price of silver rising substantially.
In fact, Money Morning Resource Specialist Peter Krauth believes that silver prices could rise to the mid-$20 level within six to nine months.
We’ll look more closely at Krauth’s 2017 silver price prediction in just a moment. But first, let’s look at what to expect at the FOMC meeting this week…
What to Expect During the Upcoming FOMC Meeting
Investors widely project the U. S. Federal Reserve will raise interest rates this week. According to the CME Group’s FedWatch Tool, there’s a 97% chance of a rate hike on Wednesday.
Now, the rate hike would be small – just 0.25%. And that would bring the fed funds rate up to between 50 and 75 basis points. If the Fed chooses to raise interest rates now, its moves will closely mirror the timing and size of its last interest rate hike, which also occurred in December and was just 0.25%.
Don’t Miss: This gold anomaly could create windfalls of $13 billion. And you can get in on the action. Here’s how…

This post was published at Wall Street Examiner on December 12, 2016.

Are You ‘Living In a Death Spiral’? These 6 States Will Collapse During the Next Recession

Being on the hook is not going to be pretty when interest rates are raised back up, and debts come due. At a personal level, it will mean more stress and juggling to make ends meet. For the larger economy, it will mean cities and states unable to meet obligations or balance their budgets – ending in bankruptcy, and bailouts. Meanwhile, millions of people are relying on that money to keep coming in order to survive. Something is going to go very wrong.
Relying upon government to function and send you money is not a secure plan.
The mathematics are terrifying and dismal, and so is being caught up in these collapsing states.
In the next phase of the financial crisis, the debt supercycle will become the most defining feature of the big hurt that will fall on nearly everyone.
That’s the dire warning that Goldman Sachs issued about what they termed the Third Wave of the global collapse. But it hasn’t come, at least not yet:
This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.
This triple whammy has its roots in the response to the first two waves of crisis – the banking collapse and European sovereign-debt crisis – and it is all part of the so-called debt supercycle of the past few decades.

This post was published at shtfplan on December 13th, 2016.

Moody’s Cuts Outlook On Italian Banks To Negative From Stable

One week after Fitch downgraded Italian banks to a negative outlook due to soaring bad debt, and risks resulting from the failed referendum, moments ago Moody’s did the same, when it announced it was changing its outlook on the Italian banking sector to negative from stable due to increasing capital needs and weakening confidence.
While hardly a surprise, Moody’s said that “Italian banks currently have one of the highest problem loan ratios in Europe at 16.4% of total loans, more than three times the 5.4% European average, as data from the European Banking Authority as of June 2016 showed.”
For those who missed it, a good breakdown of imapired loans to capital was shown by Fitch last week.
Moody’s says its negative outlook reflects a view that the recognition of losses will depress the banking sector’s profitability and erode its capital over the next 12 to 18 months – as UniCredit confirmed earlier today with Italy’s largest ever proposed equity issuance – as well as the adverse effect upon confidence following the country’s rejection of constitutional reforms.

This post was published at Zero Hedge on Dec 13, 2016.

Beware Of “Quad Witching”, Last Time The Market Tanked – Episode 1151a

The following video was published by X22Report on Dec 13, 2016
London home prices are declining rapidly just like in other countries. Gallup sees a completely different outlook on the economy since Trump was elected. Small businesses have hope but they are not seeing the sales and their businesses are suffering. Its not just Dallas that has the pension problem, Fort Worth is now included. US imports decline for 28 straight months more than the great recession of 2008. The FED will raise hikes into the “Quad Witching”, last time this happened the market tanked. Italy’s bank Unicredit is laying off 14,000 employees.

DEC 13/SURPRISINGLY NO GOLD LEAVES THE GLD BUT 1.802 MILLION OZ LEAVES THE SLV/ AT THE COMEX A HUGE 64,164 OZ LEAVES ALL VAULTS AND THE DEALER GOLD INVENTORY DROPS 5 TONNES TO 54 TONNES/CHINA’S S…

Gold at (1:30 am est) $1156.70 down $6.80
silver at $16.91: down 21 cents
Access market prices:
Gold: 1158.40
Silver: 16.93
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:
TUESDAY gold fix Shanghai
Shanghai morning fix Dec 13 (10:15 pm est last night): $ 1193.75
NY ACCESS PRICE: $1163.10 (AT THE EXACT SAME TIME)/premium $30.65
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1193.44
NY ACCESS PRICE: 1161.60 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $30.82
China rejects NY pricing of gold as a fraud
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: Dec 13: 5:30 am est: $1157.35 (NY: same time: $1157.90 5:30AM)
London Second fix Dec 13: 10 am est: $1158.55 (NY same time: $1158.20 10 AM)

This post was published at Harvey Organ Blog on December 13, 2016.

The Conspiracy to Shut Down Truth, Donald Trump, and The American People

There is circumstantial evidence that the Washington Post, the New York Times, and the rest of the presstitute media are part of a conspiracy with the oligarchs, the military/security complex, the Hillary Democrats, and neoconized Republicans to shut down the dissident Internet alternative media and to deny Donald Trump the presidency.
Consider the brand new website PropOrNot and its fake news list of 200 Internet Russian agents. PropOrNot is a website hidden behind multiple screens as would be an offshore tax avoidance scheme. In other words, no known, responsible entity is behind the site, which has libeled 200 other websites, or if it is, it is too ashamed of what it is doing to be associated with it publicly.
Consider the expertise and money required to shield the identity of an organization, whether tax avoidance or website. This is not something that just anyone can do. This type of Klingon cloaking requires real money or the CIA.
As long as it pretends to be a newspaper, the Washington Post is subject to journalistic ethics. But the PropOrNot story by Craig Timberg violated journalistic ethics. Unsupported accusations were leveled against 200 websites, a McCarthyism record.

This post was published at Paul Craig Roberts on December 13, 2016.

Peter Schiff: Make Our Money Great Again

The United States of America was founded on the principals of limited government and sound money. Today we have neither. The growth of the former has largely been a function of its ability to abolish the latter. A dollar was original defined as a specific weight of gold or silver, and the Constitution limited the power of the states to make anything other than gold or silver legal tender. As the Federal Government was given no power to make anything legal tender, and since the Federal Government only has those powers expressly granted to it by the Constitution, gold and silver are still the only Constitutional forms of money authorized in the United States.
For years all commerce in the United States was transacted in either gold or silver, with smaller transaction completed using copper or nickel. Private banks issued notes backed by their gold and silver deposits, which also circulated as note currency, along with actual money. These money substitutes were often more convenient to use than money itself, especially for larger transactions.
Eventually the Federal Reserve was created with its notes replacing the various bank notes that had previously been in circulation. They were originally backed by, and redeemable in lawful money, dollars made of gold or silver. But that changed in 1971 when this connection was severed, leaving the notes backed solely by government debt and redeemable in nothing. Since then the purchasing power of Federal Reserve Notes has steadily declined.

This post was published at Schiffgold on DECEMBER 12, 2016.

Gold Prices Steady as Bond Yields Retreat Ahead of Fed Rate Decision

Gold prices held $10 per ounce above yesterday’s new 10-month low in London on Tuesday, trading at $1162 as bond prices ticked higher, nudging US Treasury yields down from fresh 18-month highs ahead of tomorrow’s Federal Reserve decision on interest rates.
New data late Monday showed the US federal deficit tripling in November from October’s shortfall between receipts and spending.
Fiscal year 2016 already showed a 34% jump from 2015, according to theNew York Times, with current plans – before Donald Trump’s tax-cutting and infrastructure promises – set to add an extra $8.6 trillion to Washington’s outstanding debts over the next decade on Congressional Budget Office forecasts.
A rebound in the Chinese Yuan today pushed Shanghai gold premiums to fresh 3-year highs at $32 per ounce above London quotes, after new figures said China’s retail sales and industrial output both rose faster than expected in November.

This post was published at FinancialSense on 12/13/2016.

U.K.’s Cameron Sees Euro in Trouble While Defending Brexit Vote

Former U.K. Prime Minister David Cameron told a U.S. audience that the euro area will face further turmoil because the joint currency has inflicted ‘decades of lost growth’ on some countries, the Daily Telegraph said.
In his first major speech since resigning after the Brexit referendum in June, Cameron warned that the way the euro operates means weaker economies suffer because Europe lacks a unified tax system, the U.K. newspaper reported on Friday.
‘I see more trouble ahead,’ Cameron was quoted as telling students at DePauw University in Greencastle, Indiana. ‘It is not working as it was intended. Some countries have seen decades of lost growth.’
Cameron insisted he was right to call the Brexit vote, which his campaign to stay in the European Union lost by 52 percent to 48 percent, because the debate over the U.K.’s E.U. membership had ‘poisoned’ British politics for 40 years. It’s the first time that Cameron, who is writing a book, has commented in detail on the state of western politics since his defeat and the election of Donald Trump.

This post was published at bloomberg

Europe’s comfort blanket is being pulled away — Ambrose Evans-Pritchard

The long-feared moment of bond tapering in the eurozone has arrived. The comfort blanket is being pulled away – gently – for the first time since the region first crashed into a debt crisis.
The European Central Bank has tried to cushion the blow with dovish rhetoric and a glacially slow exit but there is no denying that monetary policy has reached a critical turning point. “The ECB has delivered an unwelcome surprise,” said Luigi Speranza from BNP Paribas.
It comes as China takes action to choke off a property bubble and rein in shadow banking. The world’s three big monetary blocs will all be draining liquidity at the same time.
The ECB will wind down quantitative easing from 80bn to 60bn a month when the current programme expires in March. Societe Generale says that this is just the start, predicting more tapering of 10bn in June, and then further cuts of 10bn at each meeting – a truly drastic outlook.

This post was published at The Telegraph

Doug Casey on Cuba

Editor’s Note: Fidel Castro, the longtime Cuban politician and revolutionary, recently passed away. Doug Casey had the chance to meet the Cuban leader back in 1994. Here is an article Doug wrote about Cuba and his encounters with Fidel. It was written in the 1990s, but it’s still as relevant as ever.
Half the fun of Cuba is getting there.
I was there in the 1990s with about a dozen financiers from Europe. The contingent from England, Norway, and Switzerland came over together from London, changing planes in Miami for Panama. When an impertinent customs clerk asked one of them where he was going, he innocently responded ‘Cuba.’ All six men were hustled into a locked room, with all kinds of armed and uniformed types milling about, and were detained there for two hours while agents ran background checks on them. The government couldn’t have cared less if they missed their connection. Your tax dollars at work, winning friends and influencing people for America.
It used to be there were no restaurants, no shops, no cars, and few hotels in Cuba. People were malnourished, and even at a couple of official receptions the staples were olives and Spam, because that was what they were able to barter for.

This post was published at International Man

The Used Car Pileup

2017 is shaping up to be an excellent year to purchase a used car. That’s great news for consumers — but a big worry for auto manufacturers, rental companies and auto finance groups.
A pile-up of nearly new cars returning off lease is set to cause trouble for the U.S. car industry.
Thanks in part to low interest rates, leasing has become an increasingly popular way to drive away a new car. It accounts for almost a third of all new car transactions in the U.S. and it’s also huge in the U.K. For BMW and Mercedes-Benz in particular, it’s been a boon for sales.
Typically a lease lasts about three years, after which the customer returns to the showroom for another vehicle — which is when things could get difficult for the industry.
“There’s going to be a lot of units coming back over the next several years,” Ford Motor Co. warned last month. “They’re going to get to levels that we have never seen on an absolute basis in the industry before“.
In 2017, about one million more off-lease vehicles will be available in the U.S. compared with 2015. That additional volume will put downward pressure on used car prices.

This post was published at bloomberg