The Economic Crisis Is Going To Be Alot Worse Than Originally Thought – Episode 1199a

The following video was published by X22Report on Feb 8, 2017
Greece is testing the waters and is now planning to move back to its local currency. Australia debt has risen and it looks like it is time to panic. The central bankers are now preparing the narrative that the economy was fine until Trump came along. BCBG is now closing 120 stores. Corporate debt will be approaching 2 trillion. DOJ will be going after individuals in the mortgage back security scam. Larry Fink says the US has two major problems. Tulsi Gabbard wants to bring back Glass-Steagall. The economic crisis is alot worse than originally thought, prepare and get ready.

Putin’s Tough Choice: China Or The West

‘With Tillerson’s confirmation, Exxon just annexed the United States,’ –anonymous blogger. To many observers, the appointment of Tillerson to the helm the State Dept signaled the Administration’s priority of supporting the oil industry, which in recent years has been under severe pressure from OPEC’s campaign of over-production that forced prices down to a post-recession low.
Seen from a different angle, the move also signals Exxon, the oil giant, establishing a strong connection with the Administration. As the former CEO of Exxon, and a member of the Board of Directors of the company that was the core of the original Rockefeller Family’s Standard Oil monopoly, Tillerson also brings direct contact with the Rockefeller Family, whose members remain on the Exxon Board.

This post was published at Zero Hedge on Feb 8, 2017.

Yemen Denies ‘Fake News’ That It Withdrew Permission For US Ground Operations

Fake news?
Yesterday evening, The New York Times reported that:
Angry at the civilian casualties incurred last month in the first commando raid authorized by President Trump, Yemen has withdrawn permission for the United States to run Special Operations ground missions against suspected terrorist groups in the country, according to American officials. Grisly photographs of children apparently killed in the crossfire of a 50-minute firefight during the raid caused outrage in Yemen.
While the White House continues to insist that the attack was a ‘success’ – a characterization it repeated on Tuesday – the suspension of commando operations is a setback for Mr. Trump, who has made it clear he plans to take a far more aggressive approach against Islamic militants.
With NYT notably remarking on President Trump’s involvement…

This post was published at Zero Hedge on Feb 8, 2017.

FEB 8/GOLD RISES BY $3.40 BUT SILVER FALLS BY 5 CENTS/A HUGE ‘DEPOSIT’ OF 5.63 TONNES OF GOLD ADDED TO THE GLD/NO CHANGES IN SILVER INVENTORY AT THE SLV/ BILLIONAIRE INVESTOR STANLEY DRUCKENMILLE…

Gold at (1:30 am est) $1237.60 UP $3.40
silver at $17.68: DOWN 5 cents
Access market prices:
Gold: $1242.00
Silver: $17.78
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 FIRST morning fix Feb 8/17 (10:15 pm est last night): $ 1243.34
NY ACCESS PRICE: $1235.30 (AT THE EXACT SAME TIME)/premium $8.04
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1251.53
NY ACCESS PRICE: $1230.85 (AT THE EXACT SAME TIME/2:15 am)
SPREAD/ 2ND FIX TODAY!!: $20.68
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London FIRST Fix: Feb8/2017: 5:30 am est: $1235.60 (NY: same time: $1235.60 (5:30AM)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Second fix Feb 8.2017: 10 am est: $1242.10 (NY same time: $1242.00 (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 February 8, 2017.

Peso Strengthens Ahead Of Mexican Foreign Secretary Meeting With Trump Team

It appears US-Mexico relations are not as rocky as some (cough Vicente Fox cough) would like them to be. The peso is rallying back towards 20/$ (the same level as immediately after Trump’s election) as The Hill reports the Mexican secretary of Foreign Relations will meet Trump administration officials Wednesday in Washington, D. C., (after a presidential visit was canceled in January following a public fight over who would pay for President Trump’s proposed border wall).

This post was published at Zero Hedge on Feb 8, 2017.

Stocks and Precious Metals Charts -The Beat Goes On – Hollow Men

‘Pity the nation whose people are sheep,
and whose shepherds mislead them.
Pity the nation whose leaders are liars,
whose sages are silenced,
and whose bigots haunt the airwaves.
Pity the nation that raises not its voice,
except to praise conquerors
and acclaim the bully as hero
and aims to rule the world with force and by torture.
Pity the nation that knows no other language but its own
and no other culture but its own.
Pity the nation whose breath is money
and sleeps the sleep of the too well fed.
Pity the nation – oh, pity the people who allow their rights to erode
and their freedoms to be washed away.
My country, tears of thee, sweet land of liberty.’
Lawrence Ferlinghetti, New Poems, City Lights
“Were all stars to disappear or die,
I should learn to look at an empty sky
And feel its total dark sublime,
Though this might take me a little time.’
W. H. Auden
The SNAP IPO continues lumbering on. Here is a recap of the deal.
As you may recall, I have a theory that the market does not correct until this oinker slouches towards Wall Street and is finally born.
The evening news is generally about the latest political outrage and stunt in Washington DC.
Gold and silver are moving higher towards the next serious level of overhead resistance, which is fairly prominently indicated on the charts.
While I like the action, I think it will be much more impressive later this year when it is moving fifty to one hundred dollars over for gold, and a dollar or two for silver.

This post was published at Jesses Crossroads Cafe on 08 FEBRUARY 2017.

Yellen’s Last Hike and the Next Fed Chair

Janet Yellen, you’re fired!
For the past 20-30 years, the Federal Reserve has been dominated by academics largely out of MIT. Jim Bianco at Bianco Research says that’s all going to change under Trump, starting with Fed chair Janet Yellen.
Here’s what he recently told FS Insider:
Yellen’s Last Hike
“I’ve jokingly said that when it comes to the story with the Fed this year, it’s that the Fed will raise rates in June and then Janet Yellen will be fired by Trump right after that. Her term is up in January 2018. What we’ve learned about Trump is what he says he means and what he means he says, and he has said repeatedly during the campaign that he doesn’t like Janet Yellen, doesn’t think she’s done a good job. She’s done, she’s out. And she’s got another year to go…so that’s what I mean when I say the Fed will raise rates the middle of the year and then Trump will fire Yellen.”
Kevin Warsh?

This post was published at FinancialSense on 02/07/2017.

The Lowest Common Denominator

At a recent investment conference, hedge fund billionaire Stanley Druckenmiller predicted that interest rates would continue rising. Specifically, he suggested that, consistent with the prospects for economic growth, the 10-year U. S. Treasury yield could reach 6.00% over the next couple of years. Druckenmiller’s track record lends credence to his economic perspectives. While we would very much like to share his optimism, we find it difficult given the record levels of public and private debt.
Druckenmiller’s comments appear to be based largely on enthusiasm for the new administration’s proposals for increased infrastructure and military spending along with tax cuts and deregulation. This is consistent with the outlook of most investors today. Although proposals of this nature have stimulated economic growth in the past, today’s economic environment is dramatically different from prior periods. Investors and the market as a whole are failing to consider the importance of the confluence of the highest debt levels (outright and as a % of GDP) and the lowest interest rates (real and nominal) in the nation’s history. Because of the magnitude and extreme nature of these two factors, the economic sensitivity to interest rates is greater and more asymmetric now than it has ever been. Additionally, due the manner in which debt and interest rates have evolved over time, the amount of interest rate risk held by fixed income and equity investors poses unparalleled risks and remains, for the moment, grossly underappreciated.
Proper assessment of future investment and economic conditions must carefully consider changes in the debt load and the interest rates at which new and existing debt will be serviced.

This post was published at Wall Street Examiner on February 8, 2017.

DOJ Launches Probe Of Individuals Who Worked In Deutsche Bank’s Mortgage Unit

Deutsche Bank employees who were engaged in the actual trades that ended up costing the bank a $7.2 billion settlement at the end of 2016, and who were hoping to quietly get away without criminal or civil charges, are set for disappointment because as IFR reports the DOJ is probing for potential fraud by individuals who worked in Deutsche Bank’s mortgage unit in the run-up to the financial crisis.
According to IFR’s sources, “the investigation of former Deutsche staffers is a push to hold individuals accountable for their role in the housing crisis.” The probe follows Deutsche’s multi-billion settlement in December with the DOJ over toxic residential mortgage securities sold between 2006 and 2007. Observers were surprised when no individuals who worked at Deutsche were named in the settlement, leaving shareholders footing the bill.

This post was published at Zero Hedge on Feb 8, 2017.

Italy’s Banking Crisis Is Even Worse Than We Thought

The insider blame game has begun.
In this late winter of generalized discontent, it is not easy to pinpoint just where the biggest threat to Europe’s increasingly flimsy union lies, so intense is the competition. One obvious contender is the Eurozone’s third largest economy, Italy, which faces a banking crisis, an economic crisis, a debt crisis, and a political crisis all at the same time.
The country’s Five Star Movement is gaining momentum both in the polls and in its efforts to call for a referendum on euro membership. In the meantime, Italy’s newly installed government wants – indeed, needs – to bail out a growing number of banks but has neither the money nor the political capital to do so.
Things had gotten so bad that the country’s two bad banks (Atlante I and Atlante II), ostensibly created to stabilize the financial system, were themselves on the verge of collapse. Turns out that things are even worse than we had thought, following a blistering tirade on Tuesday from Italy’s bad banker-in-chief, Alessandro Penati.

This post was published at Wolf Street by Don Quijones ‘ Feb 8, 2017.

Intel CEO Announces $7 Billion Factory Investment, Creation Of 3,000 New Jobs During Trump Meeting

During a meeting between Intel CEO Bryan Krzanich and President Trump at the White House, the chief executive of the world’s largest semiconductor maker told the president that his company would invest $7 billion in a new factory in Arizona. Krzanich said the investment is an expansion of Intel’s presence in Chandler that will enable a plant capable of advanced 7-nanometer chip production. The partially built Fab 42 facility will be completed in 3 to 4 years and is expected to add 3,000 company jobs.

This post was published at Zero Hedge on Feb 8, 2017.

Larry Fink Turns Bearish: Sees Slowing Economy, “Dark Shadows” In The Market

Speaking at the Yahoo! Finance All Markets Summit on Wednesday, an unexpectedly bearish BlackRock CEO Larry Fink joined the likes of Bill Gross, Jeffrey Gundlach and Ray Dalio who have similarly turned downbeat in recent weeks, and cautioned that the U. S. economy is in the midst of a slowdown and financial markets could see a significant setback, for the same reason the Trumpflation trade has fizzled out in recent months: uncertainty over global trade and the Trump administration’s plan to cut taxes.
“I see a lot of dark shadows,” Fink said at the Yahoo event quoted by Reuters. “The markets are probably ahead of themselves.”
Fink should know: Blackrock is the world’s biggest asset manager, with control of over $5.1 trillion in assets; he said investors are caught up in the potential for a restructuring of U. S. tax policy, which may not take place until 2018, something we warned about last December.
In the meantime, “disruptions to trade are a possibility.” Trump has called for tax cuts as well as a wide set of changes to trade policy, including a renegotiation of the North American Free Trade Agreement with Canada and Mexico.
He added that “we’re living in a bipolar world right now,” and as a result speculated that the benchmark 10-year Treasury yield could fall below 2% or, conversely, rise above 4% ; however he sees a greater probability of rates falling as deflationary risks remain due to technological advances and rising protectionism. Still, he does not see the Fed reversing course course, at least not yet, and expects the Federal Reserve to raise rates in June and possibly again once more in the year.

This post was published at Zero Hedge on Feb 8, 2017.

“Danger” – Matt Drudge Warns: “Republicans Only Know How To Be Opposition, Not Lead!”

Drudge Report founder Matt Drudge does not personally tweet too often, so when he does, it is likely something that has infuriated him and that appears to be the case with the Republican party that he helped get elected.
In an angry tweet, Drudge raged, Republicans should be “sued for fraud” for not prioritizing tax cuts and ObamaCare…

This post was published at Zero Hedge on Feb 8, 2017.

More unbelievable facts from the US government’s own financial reports

Yesterday I told you that the US government had recently released its annual financial report to the public.
And the numbers are pretty gruesome.
For example, the government’s ‘net loss’ in fiscal year 2016 more than doubled, from MINUS $467 billion to MINUS $1 trillion.
It’s astonishing that anyone could manage to lose so much money, let alone in a year where devoid of major wars, recessions, financial crises, or infrastructure projects.
But what else can we expect from an institution that spent billions of dollars to build a website?
Today I wanted to highlight a few other items from the government’s report that are worth repeating:
1) The federal government failed its own audit. Again. (page 37)
Auditors have a bad reputation. People typically conflate ‘auditor’ with the guys at the IRS who harass taxpayers.
This isn’t the case.
Auditors actually work for you.
Their job is to be an independent, objective set of eyes. They go into a company on your behalf and review all the records to make sure that there’s no fraud or deceit.

This post was published at Sovereign Man on February 8, 2017.

Hoisington Quarterly Review and Outlook – 4Q2016

Longtime readers of Outside the Box know that I am a fan of Dr. Lacy Hunt of Hoisington Investment Management. Lacy and his partner, Van Hoisington, produce a quarterly letter that is a must-read for me, as it reliably informs my thinking in a world drowning in conventional economics – economics that seem to continually miss the mark.
It almost goes without saying that Lacy will be speaking at our Strategic Investment Conference again this year, and he’s just one of a long (and still-lengthening) list of top-flight speakers. Learn more and reserve your chair, right here.
Today’s OTB is one of the most important pieces Van and Lacy have written in a long time. They establish that the proposed tax reforms will face enormous headwinds that were not there during previous tax-reform eras, which means that the benefits that Republicans think will accrue are likely to take longer to appear and be less than expected, which will mean that it is going to take more than what is presently proposed to jump-start the economy.
A few readers have asked me whether I am still a deficit hawk. The answer is, ‘Yes, more than ever,’ because total debt has now rendered both monetary and fiscal policy much less effective. Debt, as Lacy and Van clearly show, is an impediment to growth.
There are other issues impeding growth, such as the ten million men between ages 24-64 who are not in the work force, a condition that has been steadily worsening for 40 years. It’s not just a recent phenomenon, but it must be addressed. These are men who have chosen to not participate for one reason or another and are perforce a drain on overall GDP growth.

This post was published at Mauldin Economics on FEBRUARY 8, 2017.

16 Fake News Stories Reporters Have Run Since Trump Won

Since at least Donald Trump’s election, our media have been in the grip of an astonishing, self-inflicted crisis. Despite Trump’s constant railing against the American press, there is no greater enemy of the American media than the American media. They did this to themselves.
We are in the midst of an epidemic of fake news. There is no better word to describe it than ‘epidemic,’ insofar as it fits the epidemiological model from the Centers for Disease Control: this phenomenon occurs when ‘an agent and susceptible hosts are present in adequate numbers, and the agent can be effectively conveyed from a source to the susceptible hosts.’
The ‘agent’ in this case is hysteria over Trump’s presidency, and the ‘susceptible hosts’ are a slipshod, reckless, and breathtakingly gullible media class that spread the hysteria around like – well, like a virus.
It is difficult to adequately sum up the breadth of this epidemic, chiefly because it keeps growing: day after day, even hour after hour, the media continue to broadcast, spread, promulgate, publicize, and promote fake news on an industrial scale. It has become a regular part of our news cycle, not distinct from or extraneous to it but a part of it, embedded within the news apparatus as a spoke is embedded in a bicycle wheel.

This post was published at Zero Hedge on Feb 8, 2017.

Moves in Gold Price Suggest There’s Trouble Ahead

The price of gold (see above chart) has been rising and its volume spiking since President Donald Trump signed his infamous Executive Order on immigration on January 27. That action ushered in a new U. S. era of uncertainty in which thousands of agreements, such as Lawful Permanent Resident status known as a green card, can be casually broken by one man in the Oval Office signing an Executive Order and setting off pandemonium in lives and airports around the globe. It raises the fear of what other established laws or rights the President might attempt to sign away.
Gold typically rises when there is fear in stock markets. But the stock market has not been following its typical relationship to gold by selling off. Since Trump’s presidential win in early November, the Standard and Poor’s 500 has been on a steady uptrend. We’ll analyze that further in a moment, but first some necessary background.
At the top of the list of what the stock market hates is uncertainty. Thus, one would have suspected that when the United States elected a President who had never before served in public office with a penchant for hurling insults at the country’s largest trading partners, and who promised radical changes in the oversight of Wall Street, there would have been a major selloff in stocks.

This post was published at Wall Street On Parade By Pam Martens and Russ Marte.

Gold Price Over $1240, Regains ‘Trump Dump’ in Euros as ‘Disunity’ Spreads in France, Italy, Scotland

Gold prices rose to $1240 per ounce in London on Wednesday, regaining almost half of their post-US election slump as Euro stock markets slipped and government bond prices rose amid fresh fears over the currency union’s 2017 political outlook.
With France’s establishment presidential candidate Franois Fillon urging voters to reject anti-Euro “disunity” contender Marine Le Pen amid a scandal over gifting public funds to his wife, rioting spread for a fourth night in the high-unemployment Department 93 suburbs of north-eastern Paris on Tuesday after police were accused of viciously assaulting a young man, visited in hospital yesterday by current President Franois Hollande in a bid to calm the situation.
Calling for a referendum on Italy’s membership of the Euro meantime, the anti-establishment 5-Star Movement is polling neck-and-neck with the ruling PD Party ahead of this year’s national elections, while 3rd largest party the right-wing Northern League is calling for ‘Italexit’ from the European Union entirely.

This post was published at FinancialSense on 02/08/2017.