Mexican Peso Soars To Highest Level Since Trump Election After Banxico Adopts $20 Billion Hedge

At the start of January, when the Mexican Central Bank spent $2 billion to defend its currency in a rare intervention in the spot market, and which lasted just a few hours before the selling resumed, Goldman analyst Albert Ramos had some advice for Banxico: don’t use reserves to defend the Peso as Mexico would have greater need for them elsewhere.

This post was published at Zero Hedge on Feb 21, 2017.

If You Admit That You Are A Trump Supporter, It May Cost You Your Job

Many liberals that are still extremely bitter about the outcome of the election are taking out their frustrations on Trump supporters all over the country. And in some cases, employees are actually being ‘reassigned’, fired or asked to leave their jobs if they openly admit their support for President Trump. This kind of political discrimination is not supposed to be happening in our workplaces, but it is happening. Many leftists that are in positions of authority around the nation are using that authority to punish people that voted for Donald Trump. So if you voted for Trump and your boss didn’t, you might want to keep your political views to yourself at your workplace if you want to keep your job.
And sharing your political opinions on Facebook is not necessarily safe either. Just ask an elementary school teacher in Collier County, Florida that was just ‘reassigned’ to administrative duties for a pro-Trump Facebook post…

This post was published at The Economic Collapse Blog on February 21st, 2017.

75% Of Venezuelans Lose “At Least 19 Pounds” In 2016

A new study conducted by three universities in Venezuela sheds new light on just how dire the food shortages are in Maduro’s failed Socialist utopia. Called ENVOVI, the living conditions survey found that 75% of Venezuelans lost “an average of at least 19 pounds” in 2016 due to food shortages. Per UPI:
Venezuela’s Living Conditions Survey found that nearly 75 percent of the population lost an average of at least 19 pounds in 2016 due to a lack of proper nutrition amid an economic crisis.

This post was published at Zero Hedge on Feb 21, 2017.

Mnuchin Tells IMF He Expects A “Frank And Candid” Exchange Rate Analysis

With the Trump administration having gone radio silent in recent weeks on the issue of currency manipulation and whether it sees the dollar, or other currencies, as under- or over-valued, there was a notable if vague update from U. S. Treasury Secretary Steven Mnuchin who spoke to the IMF’s Managing Director Christine Lagarde on Tuesday and told her that he expects the IMF to provide “frank and candid” analysis of exchange rate policies.
There was no elaboration of what the apriori US stance was coming into the conversation.
The spokesperson said that in a phone call with Lagarde, Mnuchin also “noted the importance that the administration places on boosting economic growth and jobs in the United States, and looked forward to robust IMF economic policy advice on its member countries and tackling global imbalances.”

This post was published at Zero Hedge on Feb 21, 2017.


Gold at (1:30 am est) $1237.80 DOWN $0.10
silver was : $17.99: DOWN 3 CENTS
Access market prices:
Gold: $1236.80
Silver: $18.00
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 FIRST morning fix Feb 21/17 (10:15 pm est last night): $ 1244.89
NY ACCESS PRICE: $1233.20 (AT THE EXACT SAME TIME)/premium $11.69
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1244.89
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London FIRST Fix: Feb 21/2017: 5:30 am est: $1233.20 (NY: same time: $1233.40 (5:30AM)
London Second fix Feb 21.2017: 10 am est: $1241.95(NY same time: $1241.90 (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.
For comex gold:
For silver:
For silver: FEBRUARY
Let us have a look at the data for today
In silver, the total open interest ROSE by 1085 contracts UP to 205,602 with respect to FRIDAY’S TRADING. In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. 1.025 BILLION TO BE EXACT or 146% of annual global silver production (ex Russia & ex China).
In gold, the total comex gold ROSE BY 864 contracts WITH THE FALL IN THE PRICE GOLD ($2.40 with FRIDAY’S trading ). The total gold OI stands at 430,011 contracts
we had 146 notice(s) filed upon for 14,600 oz of gold.
With respect to our two criminal funds, the GLD and the SLV:
We had no change in tonnes of gold at the GLD:
Inventory rests tonight: 841.17 tonnes
we had a changes in silver into the SLV: a deposit of 568,000
THE SLV Inventory rests at: 335.281 million oz

This post was published at Harvey Organ Blog on February 21, 2017.

Gold Price ‘Struggling’ as Trump ‘Set to Sway’ Fed Interest Rates

Gold prices fell below $1230 per ounce in London trade Tuesday morning, losing 1% from last week’s finish as US traders returned from the President’s Day holiday focused on how Donald Trump and rising inflation could see the Federal Reserve raise interest rates again as early as March.
Asian and European stock markets edged higher while bond prices fell, nudging up longer-term interest rates.
Silver tracked the drop in gold prices, bouncing off 1-week lows at $17.85 per ounce.
Major indexes of commodity prices rose but held shy of January’s 18-month highs.
After optimism amongst US businesses leapt at a record pace following Donald Trump’s White House victory, the bosses of major employers including GE and Boeing are now urging the new president to “revamp” America’s tax code, reports the Financial Times, in what some call a once-in-30-years opportunity.
With the US economy already near “full employment”, the January Consumer Price Index put annual inflation at it fastest pace in 5 years, above the Fed’s 2.0% target.

This post was published at FinancialSense on 02/21/2017.

Here Are Multiple Signs That Indicate That The US Is In A Recession – Episode 1210a

The following video was published by X22Report on Feb 21, 2017
Shaeuble says the problem with Greece is not the debt its their reforms. Australia is going to try zero percent down for homes, we all know how that turned out. Macy’s, Walmart and Toy R Us show declining sales. Auto insurance rates have soared by 20% because of texting. Hard data show economy is declining while the soft data shows everything is ok. There are multiple signs that the US economy is in a recession. HSBC missed earning big. S&P 500 is now overbought than in 2000 bubble. Russia adds more gold to its reserve.

Stocks and Precious Metals Charts – Don’t Lie To Yourself

‘Till human voices wake us, and we drown.’
T. S. Eliot
“Do you think he is so unskillful in his craft, as to ask you openly and plainly to join him in his warfare against the truth? No; he offers you baits to tempt you. He promises you civil liberty; he promises you equality; he promises you trade and wealth; he promises you a remission of taxes; he promises you reform.
This is the way in which he conceals from you the kind of work to which he is putting you; he tempts you to rail against your rulers and superiors; he does so himself, and induces you to imitate him; or he promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind. He scoffs at times gone by; he scoffs at every institution which reveres them.
He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods. Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his.”
J. H. Newman
Things are getting stretched out quite a bit. We are in what can modestly be called pivotal times.
The market for equities is now pricing in expectations of both a corporate tax cut and a repatriation deal for the transfer priced cash that US corporations have been hoarding in tax havens overseas.

This post was published at Jesses Crossroads Cafe on 21 FEBRUARY 2017.

Tech Stocks Extend Record Winning Streak As Dow Tops 20,700

Overheard everywhere today…
Dow, S&P, and Nasdaq all hit fresh record highs today
(as Reuters notes)
The S&P is trading at 17.8 times earnings estimates for the next 12 months, above the long-term average of 15 times, according to Thomson Reuters Datastream.
“There is no doubt in anyone’s mind that the market has become over-extended and is due for a pullback,” said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
“That said, when you have this kind of momentum, it is very hard to sit on the sidelines.”

This post was published at Zero Hedge on Feb 21, 2017.

This is Why World Trade is the Weakest Since 2009

Despite what you may think, it’s not due to protectionism.
World Trade has been on our worry-list for a while, most recently in December [World Trade Falls to 2014 Level, just in Time for a ‘Trade War’]. Why has world trade refused to boom recently? And it wasn’t just last year. But last year was particularly crummy. Lackluster global demand gets blamed. But that’s using a broad brush to sketch a troublesome development.
Now the alarmed World Bank, in its report, Trade Developments in 2016 (PDF), barely blames the usual suspects for this lackluster global demand, but identifies a new and dominant one: ‘policy uncertainty.’
It points out that 2016 was the fifth year in a row of ‘sluggish trade growth.’ 2015 had already been the weakest year since 2009, when global trade collapsed as a result of the Financial Crisis. But 2016 was even worse than 2015.
World trade is devilishly hard to quantify, and so the estimates for 2016 vary:

This post was published at Wolf Street by Wolf Richter ‘ Feb 21, 2017.

Trump’s Nuclear Option for the Media: No More Press Conferences

I had specific suggestions for Trump on how to run his press conferences. Obviously, he did not take my suggestion seriously. I doubt that he ever saw this.
In a recent tweet, he identified the media as the enemy of the American people. That threw down the gauntlet.
The media are surely enemies of Trump. He can never get them to be anything except completely opposed to him and his presidency. They have shown that there is no trace of neutrality in the media. Those of us who knew that back in the 1950’s can point to this as confirmation. Trump now has received the memo.
Why should Trump ever hold another press conference? Why should he have a press secretary? Why should he give the media the time of day?
The media needs news. Presidents have provided low-cost, easy-access news ever since Teddy Roosevelt began the tradition in 1901. It has always favored the Left.
In the past, the Presidents have tried to put their spin on particular stories. They have done this by letting reporters have access to them. But there will be no positive spin for Trump or his policies. The media are 100% on attack mode. So, he can get no positive spin through them.
Why should he seek to get any spin at all? He doesn’t need the media. The media are opposed to him, and he can never win them back. Why should he show up at a press conference? What benefit is this going to give him?
What good is a press secretary? Why should a President allow some salaried employee to speak on behalf of the presidency? The President should speak for the President. Nobody else should.

This post was published at Gary North on February 21, 2017.

SocGen: “The Average Stock Is Still 26% Down From Their All-Time Highs”

With the S&P making new all time highs on a daily (and hourly) basis, and the VIX just why of all time lows, one has to look hard to find something that is amiss with the “market.” Which is precisely what SocGen’s Andrew Lapthorne did recently, and in his latest report he warns that global indices hitting all time highs is “disguising an underbelly of trouble.”
Laphtorne notes that global equity markets continue to move higher, with both the MSCI & FT World Indices hitting all-time highs last week and the S&P 500 specifically hitting a new closing high on Friday. So all would appear to be rosy in the equity market with the consensus promising higher EPS growth in 2017 and bond yields remaining reasonably well behaved despite higher headline rates of inflation and a very slightly more hawkish tone from the US Federal Reserve.
However, the SocGen strategist warns that if one scratches below the surface of these headline numbers and all is not as it seems.
First example: out of the 1,650 MSCI World stocks only 246 have hit a new all-time high this year.

This post was published at Zero Hedge on Feb 21, 2017.

How Mistakes Lead to Success

‘Creative people don’t make mistakes. We make discoveries.’
I heard that quote at a hair convention years ago. I was there with my wife, who is a Paul Mitchell stylist.
The speaker was right. Great ideas often originate in unexpected places.
I like to think I’m creative. I’m also a creature of habit. One such habit: coffee at exactly 10:00 every morning.
Last Wednesday at 10:00, I went to the brewer and did what I always do: pump some vanilla creamer into a cup, place the cup in the machine, load a pod and wait.
When I pulled the cup out, the coffee was a funny color.
On tasting it, I knew instantly this wasn’t my normal blend – but it wasn’t bad. I actually liked it.
Instead of coffee, I had grabbed a tea pod. That’s how I ‘discovered’ hot tea with vanilla creamer is pretty good.
(Subsequent research revealed Asian cultures were centuries ahead of me. Hot tea milk spices = chai. I never knew.)
Mistakes like that one are amazingly valuable. They pull us out of our routine and teach us things we might never know otherwise. How can we make more of them?
One answer: Get out of the office.

This post was published at Mauldin Economics on FEBRUARY 21, 2017.

French Bond Yield Climbs to 4-Year High vs. German Bund

On February 7th, France’s Finance chief Michel Sapin, trying to stem the rise in French borrowing costs in recent weeks, on uncertainty regarding the outcome of the upcoming French election, warned traders who were betting against the Euro and betting a on victory by Marine Le Pen, – they are guaranteed to lose a lot of money. ‘Those who, in good faith or by speculation, bet against France because they think Le Pen can win are not only wrong, but I’ll be frank: they will lose a lot of money. I don’t know where the government bonds yield spread will be by April, maybe higher, but you’ll have a very, very quick drop after the presidentials,’ he said.
Uncertainty about the outcome of the election, taking place in two rounds on April 23 and May 7, has lifted the premium that investors demand for holding 10-year French bonds over German Bunds to 75-basis points last week, its highest for almost four years. Sapin, a French political veteran, said some investors didn’t seem to understand the French electoral system, which he said would guarantee anyone facing Le Pen in May’s runoff an easy victory with about 60% to 70% of votes. ‘That’s the reason why Marine Le Pen will never be elected in France,’ he told a group of European journalists.
Even though Le Pen looks certain to reach the head-to-head second round, all opinion polls show she will be soundly beaten by whoever she faces, with independent centrist Emmanuel Macron, currently in top poll position to defeat her. Sapin said observers were wrong to draw parallels with Britain’s decision to leave the EU and Donald Trump’s election in the US, which had both caught markets off guard. ‘Saying: ‘since we were wrong once, wrong twice, we’re wrong on Le Pen’ is to not understand anything about France.’

This post was published at FinancialSense on 02/21/2017.

Bloomberg News Admits The Fed Manipulates Gold

‘Yellen Can’t Halt Trump Gold Rally That Funds Bet Against’ – That was the headline in a Bloomberg news report that was released on Sunday afternoon. There’s a lot going on in that headline – none of it accurate except for the fact that gold is moving higher despite the efforts of western Central Banks to cap the price.
The basic premise of the report is that gold is moving higher in defiance of the Fed’s apparent move to raise interest rates. Reading through the report reveals even more misleading and completely false information than is conveyed by the headline. Here’s a link if you want to read the article: Bloomberg/Yellen/Gold.
The headline itself and the article content are both highly problematic, riddled with disinformation and completely inaccurate assertions. Anyone actually who might have read the article and trusted the content has been taken down to ‘ground zero’ intellectually. Propaganda for the ignorant. I will be reviewing several ways in which the article content is inaccurate, if not intentionally fraudulent, in the upcoming issue of the Mining Stock Journal.

This post was published at Investment Research Dynamics on February 21, 2017.

Man Destroys Corrupt City In Bulldozer Rampage: ‘What Happens When You Have Too Much Government Interference’

Sometimes, when you push people too far, they push back.
And that has never been more true than when a man from Granby, Colorado decided to build a homemade tank, reinforced against armaments of all kinds, and take out the institutions he saw as corrupt.
OK, sure, this happened back in 2004 – so it isn’t a recent event.
But what it does show is the level that many Americans can and will reach when they’ve had enough.
This is not a question of whether what he did was legal, or justified. No one can condone this. Instead, this is simply a matter of a man who was fed up – rightly or wrongly, he was no longer going to be pushed by his government, he was going to push back.
A news helicopter filmed much of the rampage.

This post was published at shtfplan on February 21st, 2017.

Fannie, Freddie Plunge After Court Rules Hedge Funds Can’t Sue

Moments ago, the stocks of the nationalized GSEs – Fannies and Freddie – tumbled by over 30%, after a federal appeals court upheld a ruling that barred hedge funds from suing to overturn the U. S. government’s 2012 decision to capture billions of dollars in the profits generated by the mortgage guarantors Fannie Mae and Freddie Mac after their bailout.
According to Bloomberg, which first reported the ruling, some Fannie Mae and Freddie Mac investors still have a shot at money damages, based on when they acquired their shares and whether they did so before or after the Federal Housing Finance Agency was created and then imposed its control over Fannie Mae and Freddie Mac. They can pursue breach of contract claims, the appeals panel said in a split 2-1 decision Tuesday.
‘It’s a little too early for me to announce what our response will be other than to say what these breach of contract claims were always the central claims in this case,’ said Hamish Hume, a Washington-based attorney with Boies Schiller Flexner LLP, who represented some of the prevailing shareholders.

This post was published at Zero Hedge on Feb 21, 2017.

Nasdaq Now More Overbought Than At 2000 Bubble Peak

Sometimes you just have to laugh…
Minneapolis Fed’s Neel Kashkari said earlier…
“we are keeping our eyes open for asset prices to try to look for signs of bubbles’ but admitted that it is “very hard to see asset bubbles in advance.”
Indeed it must be… if your salary depends on it.
The S&P 500 has now gone a stunning 50 days without a 1% swing…

This post was published at Zero Hedge on Feb 21, 2017.

Biggest Gasoline Glut In 27 Years Could Crash Oil Markets

Why is demand suddenly faltering?
Oil prices are stuck in a holding pattern, waiting for more definitive data on what comes next. OPEC compliance is helping keep prices afloat, but rising U. S. oil production is acting as a counterweight.
A new problem that has emerged is the record levels of gasoline sitting in storage. The market has already had to digest the fact that U. S. crude oil stocks were rising, and investors have done their best to explain away the trend. But now gasoline inventories are climbing to unexpected heights.
It would be one thing if crude stocks were rising, perhaps because refiners were going offline for maintenance. But if that were the case, then gasoline stocks would draw down on lower refining runs. But if both crude and refined product inventories are going up at the same time, then there should be some reasons for worry.
In fact, the glut of gasoline is now the worst in 27 years. At 259 million barrels, U. S. gasoline storage levels are now at their highest level since the EIA began tracking the data back in 1990.

This post was published at Wolf Street on Feb 21, 2017.

Would You Rather Be Right Or Rich?

I have recently written a few articles discussing my directional perspective on the S&P500. In fact, my long-term target has been 2537-2611SPX for years now. Moreover, before we entered 2016, I noted that I was looking for a rally to 2300SPX in 2016, but with the market potentially dropping to the 1800SPX region first into February, as you can see from the chart outlining our analysis for 2016.
But, I also believed that the 2300SPX region was only a way point, as I expected us to head much higher in 2017.
Now, the comments to these articles have been quite interesting. The common underlying theme seems to suggest that the fundamentals of the market have not supported this rally, and still do not support the market for being as high as it is currently. And, when I question these commenters, they are more than happy to admit that the market is simply wrong for being as high as it currently stands.
Folks, I don’t know about you, but from where I come from, the market is always right and price represents the ultimate truth in the market. In fact, one of my members provided me with a wonderful analogy to drive this point home:
If a weather forecaster calls for sunshine, but instead it rains, would we then say that the forecaster was right, but the weather was wrong?
Saying that the fundamentals are right and the market is wrong is no different than our weather example.
Even those that believe fundamentals drive our market easily admit that there are many times where the fundamentals do not control, and we are now in the midst of one of those times. But, let me give you another example. Let’s say a car is set up to be driven by remote control. When we place someone behind the wheel, and he turns the wheel in the direction the car is moving some of the time, do we say that the person in the driver seat is controlling the car, or is it the one with the remote control that is driving the car all the time?

This post was published at GoldSeek on 21 February 2017.