Government “Flabbergasted” After Elon Musk’s Most Bizarre Claim Yet

Elon Musk set the interwebs ablaze this morning when he tweeted out that he somehow got every major city on the eastern seaboard to “verbally approve” a “NY-Phil-Balt-DC Hyperloop” to be built by his Boring Company.
“Just received verbal govt approval for The Boring Company to build an underground NY-Phil-Balt-DC Hyperloop. NY-DC in 29 mins.” “City center to city center in each case, with up to a dozen or more entry/exit elevators in each city.”
“Still a lot of work needed to receive formal approval, but am optimistic that will occur rapidly.”
“If you want this to happen fast, please let your local & federal elected representatives know. Makes a big difference if they hear from you.”
If you want this to happen fast, please let your local & federal elected representatives know. Makes a big difference if they hear from you.
— Elon Musk (@elonmusk) July 20, 2017

This post was published at Zero Hedge on Jul 20, 2017.

Stocks and Precious Metals Charts – One Day In Texas

‘Beware the Jabberwock, my son!
The jaws that bite, the claws that catch!
Beware the Jubjub bird, and shun
The frumious Bandersnatch!’
Lewis Carroll
“Grigory Yefimovich Rasputin –
spiritual advisor to the Romanovs.
In 1916, at a dinner in his honor,
he was poisoned, shot stabbed,
clubbed, drowned, and castrated.”
Hellboy, 2003
“A shudder in the loins engenders there
The broken wall, the burning roof and tower
And Agamemnon dead.
Being so caught up,
So mastered by the brute blood of the air,
Did she put on his knowledge with his power.”
W. B. Yeats
Tomorrow is a stock options expiration.
Next week there will be a precious metals option expiration on the Comex and an FOMC meeting.
If the metals can make it past these, then the path to a breakout may be clear.
Stocks look toppy. Wait for it.

This post was published at Jesses Crossroads Cafe on 20 JULY 2017.

JULY 20/MUELLER NOW EXPANDS SCOPE INTO TRUMP’S BUSINESS DEALINGS SENDS GOLD AND SILVER NORTHBOUND/GOLD UP $3.50/SILVER UP 5 CENTS/BANK OF AMERICA PULLS OUT OF ALL FUNDING FOR LARGE CHINESE CONGLO…

GOLD: $1246.00 UP $3.50
Silver: $16.38 UP 5 cent(s)
Closing access prices:
Gold $1245.00
silver: $16.36
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1247.75 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1239.50
PREMIUM FIRST FIX: $8.25
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SECOND SHANGHAI GOLD FIX: $1246.52
NY GOLD PRICE AT THE EXACT SAME TIME: $1238.10
Premium of Shanghai 2nd fix/NY:$8.42
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LONDON FIRST GOLD FIX: 5:30 am est $1236.55
NY PRICING AT THE EXACT SAME TIME: $1237.70
LONDON SECOND GOLD FIX 10 AM: $1238.70
NY PRICING AT THE EXACT SAME TIME. $1239.15
For comex gold:
JULY/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR NIL OZ.
TOTAL NOTICES SO FAR: 149 FOR 14900 OZ (.4634 TONNES)
For silver:
JULY
34 NOTICES FILED TODAY FOR
170,000 OZ/
Total number of notices filed so far this month: 2956 for 14,780,000 oz
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end
The key event today was the revelation that Mueller is probing Trump’s business interests around the globe. That sparked gold and silver to rebound after the bankers had targeted our precious metals to the dumpster today. That plan was foiled with the Mueller news.
I would really like you to read the Stockman commentary at the bottom of my commentary. It is a must read..
Let us have a look at the data for today
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In silver, the total open interest FELL BY 1845 contract(s) DOWN to 207,844 DESPITE THE TINY RISE IN PRICE THAT SILVER TOOK WITH YESTERDAY’S TRADING (UP 4 CENT(S). TODAY WE HAD NEW SPECULATOR LONGS ENTER THE MARKET WITH THE BANKERS SUPPLYING THE NECESSARY PAPER. THE BANKERS ARE HAVING AN AWFUL TIME TRYING TO SHAKE THE SILVER LEAVES FROM THE SILVER TREE. HOWEVER SOME SILVER LONGS DID DEPART
In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.061 BILLION TO BE EXACT or 152% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT MAY MONTH/ THEY FILED: 34 NOTICE(S) FOR 170,000 OZ OF SILVER
In gold, the total comex gold FELL BY 2948 CONTRACTS DESPITE THE RISE IN THE PRICE OF GOLD ($0.50 with YESTERDAY’S TRADING). The total gold OI stands at 481,256 contracts. THE BANKERS ARE STILL LOATHE TO SUPPLY THE GOLD PAPER AND WISH TO COVER MORE OF THEIR SHORTS. SOME NEWBIE SPEC LONGS STARTED TO ENTER THE GOLD COMEX ARENA AGAIN. THE PLETHORA OF DATA RELEASED ON FRIDAY SHOWING RETAIL SPENDING BASICALLY COLLAPSING ALONG WITH SMALLER INFLATION NUMBERS MUST BE SCARING OUR BANKERS TO DEATH.
we had 0 notice(s) filed upon for NIL oz of gold.
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With respect to our two criminal funds, the GLD and the SLV:
GLD:
Today no changes in gold inventory
Inventory rests tonight: 816.13 tonnes
for 5 consecutive days, gold rises appreciably and yet gold inventory drops at the GLD
(In the last 5 days gold rises $27.70 and yet GLD inventory collapses by 16.26 tonnes)
GLD IS A MASSIVE FRAUD/INVENTORY SHOULD BE RISING NOT FALLING.
SLV
Today: : WE HAD A HUGE CHANGES IN SILVER INVENTORY TONIGHT/A WITHDRAWAL OF 945,000 OZ WITH SILVER UP AGAIN BY 5 CENTS
INVENTORY RESTS AT 347.121 MILLION OZ

This post was published at Harvey Organ Blog on July 20, 2017.

Preparing for THE Bottom: Part 4 – Gold Stocks and Bonds

In the first part of the Preparing for THE Bottom series, we emphasized the need to be sure to stay alert and focused in the precious metals market, even though it may not appear all that interesting. We argued that preparing for the big moves in gold that are likely to be seen later this year should prove extremely worth one’s while. In the second part of the series, we discussed when, approximately, one can expect the key bottom in gold to form (reminder: this winter appears a likely target) and in the third part of the series, we discussed one of the confirmations that could indicate that the final bottom is in or at hand – the gold to silver ratio. The latter is not the only important ratio that one needs to keep in mind and in today’s article, we’re going to discuss two additional ones: the one based on gold and the bond market and a second one, which includes gold stocks and gold. Both ratios add to the clarity regarding the upcoming bottom and they could be used as confirmations that the bottom is indeed in or at hand.

This post was published at GoldSeek on 20 July 2017.

Would You Like To Steal 128 Million Dollars?

What would you do with 128 million dollars? Many people like to daydream about winning the lottery, and I have to admit that when I was much younger I would do the same thing. If you were suddenly financially set for life, you could quit your job, buy your dream home, travel the world and spend your days doing whatever you felt like doing. We only get one trip through this crazy journey called life, and an enormous mountain of cash could make the journey a whole lot nicer. So if you could steal 128 million dollars and be absolutely certain that you could get away with it, would you do it?
You would probably be surprised at how many people out there would answer that question affirmatively. Money is a very powerful motivator, and if the fear of getting caught was out of the equation a lot of people out there would certainly be willing to ‘bend the rules’ for a cool 128 million dollars.
But let’s turn this around for a moment.
What if someone stole 128 million dollars from you?
How would you feel about that?
Every crime has a victim, and losing that amount of money would be unimaginable.
Perhaps you think that this scenario is way too outlandish to even be considering. After all, who in the world could steal 128 million dollars from someone and get away with it?
Well, what if I told you that this has been happening every day?
And what if I told you that this has actually been happening every single hour of every single day for many years?

This post was published at The Economic Collapse Blog on July 20th, 2017.

CBO Says McConnell Healthcare Bill Would Slash Deficits By $420 Billion, Leave 15 Million Uninsured

Another day, another CBO score for another version of the GOP’s healthcare bill. This time, the agency estimates that McConnell’s “Better Care Reconciliation Act” legislation would lower the federal budget deficit by $420 billion over the next 10 years by reducing spending for Medicaid and subsidies for nongroup health insurance.
As The CBO notes, those effects would be partially offset by the effects of provisions not directly related to health insurance coverage (mainly reductions in taxes), the repeal of penalties on employers that do not offer insurance and on people who do not purchase insurance, and spending to reduce premiums and for other purposes.
Compared with the June 26 cost estimate for a previous version of the legislation, this cost estimate shows savings over the next 10 years that are larger – as well as estimated effects on health insurance coverage and on premiums for health insurance that are similar. The current version of the legislation would result in greater deficit reduction mostly because it would retain certain taxes that the previous version of the legislation would have eliminated. The description of the legislation and of CBO and JCT’s methodology and results that appeared in the agencies’ previous estimate largely applies to this one as well.

This post was published at Zero Hedge on Jul 20, 2017.

The ECB Morphs into the Mother of All ‘Bad Banks’

As part of its QE operations, the ECB continues to pour billions of freshly created euros each month into corporate bonds – and sometimes when it buys bonds via ‘private placements’ directly into some of Europe’s biggest corporations and the European subsidiaries of non-European transnationals. Its total corporate bond purchases recently passed the 100 billion threshold. And it’s growing at a rate of roughly 7 billion a month. And it’s in the process of becoming the biggest ‘bad bank.’
When the ECB first embarked on its corporate bond-buying scheme in March 2016, it stated that it would buy only investment-grade rated debt. But shortly after that, concerns were raised about what might happen if a name it owned was downgraded to below investment grade. A few months later a representative of the bank put such fears to rest by announcing that it ‘is not required to sell its holdings in the event of a downgrade’ to junk, raising the prospect of it holding so-called ‘fallen angels.’
Now, sixteen months into the program, it turns out that the ECB has bought into 981 different corporate bond issuances, of which 34 are currently rated BB+, so non-investment grade, or junk. And 208 of the issuances are non-rated (NR). So in total, a quarter of the bond issuances it purchased are either junk or not rated (red bars):

This post was published at Wolf Street by Don Quijones – Jul 20, 2017.

INABILITY TO POST BAIL CAN’T FORCE DEFENDANTS INTO JAIL TIME BEFORE TRIAL, INTREPID JUDGE RULES

Lacking sufficient funds to bail oneself from jail after arrest has long mandated a lengthy stint behind bars while awaiting trial; but this modern iteration of a Dickensian debtor’s prison system may finally have met its match in a judge from Chicago, who – perhaps fed up – ruled this week that income should not bear sole weight in determining bail.
Considering court dates are not infrequently months or years in the future, countless lower-income Chicagoans – particularly, those charged with nonviolent drug and other offenses – won’t be unjustly forced to languish behind bars, worsening their financial situation, due to unreasonable bail.
‘Defendants should not be sitting in jail awaiting trial simply because they lack the financial resources to secure their release,’ Timothy Evans, chief judge of the Circuit Court of Cook County, said in a statement cited byReuters.
‘If they are not deemed a danger to any person or the public, my order states that they will receive a bail they can afford.’
Although bail may still be set to ensure a defendant’s appearance on the appropriate court date, judges are now required to establish whether the ‘defendant has the present ability to pay the amount necessary.’

This post was published at The Daily Sheeple on JULY 20, 2017.

BIll Gross: Beware The “Unknown Consequences Lurking In The Shadows”

Starting off with two macabre examples of extreme behavior – one man who can’t stop eating and another one who can’t start – in his latest monthly letter Bill Gross says that “monetary policy in the post-Lehman era” has become the modern equivalent of gluttony: “they can’t seem to stop buying bonds, although as compulsive eaters and drinkers frequently promise, sobriety is just around the corner.”
Pointing out a number we discussed just yesterday, Gross notes that “to date, since the start of global Quantitative Easing, over $15 trillion of sovereign debt and equities now overstuff central bank balance sheets in a desperate effort to keep global economies afloat.” What Gross is referring to, of course, is the chart we showed just yesterday in “The Most Dangerous Moment”: Why Every Bank Is Suddenly Talking About Q3 2018”

This post was published at Zero Hedge on Jul 20, 2017.

TopWatch

The market is up 2% since I called the top a month ago. This financial analyst gig ain’t easy!
Financial newsletters are now stuffed with bubble porn – their favorite subject is complaining about how overpriced everything is. As a financial writer, it’s tough to stay fresh when that’s all there is to talk about.
Let’s continue, nonetheless.
I got an email from a longtime reader the other day, and I usually get emails from him when he is right and I am wrong. He said:
‘None of my indicators are flashing red except valuation and it’s the least important. Liquidity, sentiment, breadth, credit, et al [are all showing] green light.’
So I replied: ‘Credit?’
He said: ‘High yield and high grade at the tights.’
It Can’t Get Any Tighter
You always flinch when you hear statements like this, but what I am hearing from the folks in credit is that it just can’t get any tighter. Spreads over treasuries cannot get any smaller. This is as tight as it can possibly get.
That means that credit probably could get tighter, but I respect everyone’s opinion. The corporate credit markets are richer than anyone has ever seen them.

This post was published at Mauldin Economics on JULY 20, 2017.

Sessions: “I Will Continue Serving As Attorney General As Long As That Is Appropriate”

Following his scathing NYT interview published on Wednesday, in which Trump said he regretted appointing the Attorney General, and said would not have chosen Sessions to serve as attorney general had known Sessions would recuse himself from the investigation into Russian election meddling, on Thursday AG Sessions said he plans to continue to serve in his post “as long as that is appropriate.”
“I have the honor of serving as attorney general. It’s something that goes beyond any thought I would have ever had for myself,” Sessions said during a press conference Thursday.

This post was published at Zero Hedge on Jul 20, 2017.

Is The Real Dollar Pain-Trade Lower?

Although I am sure they were some traders advocating shorting the US dollar into the Trump bump, they sure seemed few and far between (apart from this badass cat who nailed the trade and is now covering into the USD weakness).
In fact, when I think about the opinions from the ‘cool kids’ over the past six months, I can only recall all-out-bulls, or unsure fence sitters. Name me a big-name US dollar bear pounding the table – none spring to mind.
And in the heyday period following Trump’s election, the US dollar bullishness was downright exuberant.

This post was published at Zero Hedge on Jul 20, 2017.

Gold and Silver Shine in the Midst of Commodity Slump

Banks active in commodities have been hammered so far in 2017.
According to reporting in the Financial Times, income from commodity trading and related activities at Goldman Sachs, Citigroup, JPMorgan and nine other investment banks dropped 40% in Q1 2017, and the struggles have continued into the second quarter.
Weakness in the energy sector generally, and the price of oil in particular, drug down commodity trading. Gold and silver were the bright spot – an exception to the general commodity trend.
Revenues shrank as banks became more wary of doing business with cash-strapped oil companies after the price of crude dropped below $30 a barrel. At the same time, there was little or no incentive for producers to hedge output at loss-making prices.’
Goldman Sachs was the hardest hit. Its problems extended into the second quarter with another 40% plunge in fixed income, currencies, and commodities revenues. According to CNBC, the bank recorded its worst commodities quarter ever. Goldman CFO Martin Chavez called it a ‘challenging environment on multiple fronts.’

This post was published at Schiffgold on JULY 20, 2017.

Chapter 40: Minimum Wage Law

Christian Economics: Teacher’s Edition
‘For the kingdom of heaven is like a master of a house who went out early in the morning to hire laborers for his vineyard. After agreeing with the laborers for a denarius a day, he sent them into his vineyard. And going out about the third hour he saw others standing idle in the marketplace, and to them he said, ‘You go into the vineyard too, and whatever is right I will give you.’ So they went. Going out again about the sixth hour and the ninth hour, he did the same. And about the eleventh hour he went out and found others standing. And he said to them, ‘Why do you stand here idle all day?’ They said to him, ‘Because no one has hired us.’ He said to them, ‘You go into the vineyard too.’ And when evening came, the owner of the vineyard said to his foreman, ‘Call the laborers and pay them their wages, beginning with the last, up to the first.’ And when those hired about the eleventh hour came, each of them received a denarius. Now when those hired first came, they thought they would receive more, but each of them also received a denarius. And on receiving it they grumbled at the master of the house, saying, ‘These last worked only one hour, and you have made them equal to us who have borne the burden of the day and the scorching heat.’ But he replied to one of them, ‘Friend, I am doing you no wrong. Did you not agree with me for a denarius? Take what belongs to you and go. I choose to give to this last worker as I give to you. Am I not allowed to do what I choose with what belongs to me? Or do you begrudge my generosity?” (Matthew 20:1 – 15).
Analysis’Am I not allowed to do what I choose with what belongs to me?’ This verse is the most powerful affirmation of property rights in the New Testament. The context of the statement is Jesus’ parable of the employer who hires men at various times throughout the day. At the end of the day, he pays all of them the same. He broke no contract. They had all agreed to work for him for a full day. They had agreed at various times during the day. But those who had worked all day complained. Clearly, those laborers who were hired late in the day received a much higher payment per hour of work.
In response, the employer affirmed the right of contract and also the right of ownership. But this affirmation applied to them, too. They had possessed the both the ability and opportunity to work for a wage. No one compelled them to accept his offer. As owners of their labor, they had the right to decline the offer. They did not decline. But after a day’s work, they compared their hourly wages with late-comers’ hourly wages. They grew discontented. They wanted more.

This post was published at Gary North on July 19, 2017.

BANK ASSETS ARE EPHEMERAL – HERE TODAY GONE TOMORROW

It is not only paper gold which is Fake. Few investors realise that most of their investments are Fake.
Fake news and Fake assets are everywhere. Let’s start with social media which dominates major parts of the world. Facebook for example has 2 billion active users. WhatsApp has 1.2 billion users and Instagram 700 million. There will obviously be quite a lot of overlap between the various social media. But what it is clear that these three Apps reach billions of people and their power is much bigger than that of any other media; Social Media has more impact than newspapers or than television and is the only media that 2-3 billion people follow regularly. Most people and in particular young people don’t watch television and don’t read the papers. They get all their ‘news’ from social media.
SOCIAL MEDIA SOURCE OF FAKE NEWS
Social media is instant gratification. You post something or you send a message and you get a message back or a number of likes which generates dopamine and makes you momentarily happy. But as I have experienced from our many grandchildren, social media is a perfect source of Fake news. Many young people using social media will be receivers of Fake News or bullying. Social media is perfect for spreading false rumours which are very often difficult to get rid of. Trump’s Twitter account is another example of alleged Fake News. Trump accuses the papers and television of Fake News and they accuse him of the same.
This is the world we live in today – a world with Fake markets, Fake assets, Fake values, Fake money, Fake people and Fake news.

This post was published at GoldSwitzerland on July 20, 2017.

Has The Fed Used The Same Tactic To Fool The People Again? – Episode 1337a

The following video was published by X22Report on Jul 20, 2017
As the Greek crisis continues to spiral downward, the housing market gets hit and value of homes decline dramatically. Rental growth declines, following a similar pattern in 2007 going into the 2008 recession. Philly Fed slumps. Corporate media reports that to many Americans are purchasing homes they can’t afford, it begins. ECB is ready to push stimulus if the economy starts to decline and falter. The central banks know that the collapse is headed our way, this is why they are prepared with stimulus. The Fed, like they have done in the past has fooled the American people, they will be rising rates, to bring down the economy.

Bank Earnings & Fed Chairs

Earlier this week we appeared on CNBC’s ‘Squawk Box’ to talk about bank earnings and the Fed. The results from the top-four banks – Bank America (NYSE:BAC), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) – are really no surprise to readers of The IRA. The largest banks all beat small on revenue and earnings, but showed weakness on fixed income and the mortgage banking lines.
We suspect that there will be even more pain on the mortgage banking line for WFC, JPM and BAC next quarter. As we told Andrew Ross Sorkin, bank stocks have essentially been going sideways since February and are likely to continue side-stepping because most of the large cap names are fully valued after the Trump Bump. But the biggest obstacle to rising bank stock valuations is the Federal Reserve System’s policies of low rates and open market purchases of debt.
At the Fed of New York back in the 1980s, one and a quarter times book was seen as the natural limit for bank valuations. Have a look at our previous note if you have any questions on the particulars. Suffice to say that 1x book value for BAC is about right given the bank’s asset and equity returns, and the state of the credit markets. Tight credit spreads make life tough for all but the best run banks.
When we suggested US Bancorp (NASDAQ:USB) to Squawk Box as our favorite large cap, that was because of the operational excellence as opposed to the stock price, which trades above 2x book value. But the more interesting question from CNBC’s Andrew Sorkin had to do with the choice of the next Fed Chairman.

This post was published at Wall Street Examiner on July 18, 2017.

Trump Jokes French President Macron “Loves Holding My Hand”

On the heels of the most excruciating 30 seconds of handshaking ever, President Trump is trying to play down the incident during a New York Times interview, joking that French President Emmanuel Macron “loves” holding his hand.
As The Hill reports, the two leaders shared an extended departing handshake in Paris last week, which was mockingly timed by MSNBC. Anchor Katy Tur saying the two leaders were “enjoying new romance.”


This post was published at Zero Hedge on Jul 20, 2017.