PHYSICAL GOLD – THE ONLY PENSION FUND TO SURVIVE

There are probabilities in markets and there are certainties. It is very probable that investors will lose a major part of their assets held in stocks, bonds and property over the next 5-7 years. It is also probable that they will lose most of their money held in banks, either by bank failure or currency debasement.
WHO BUYS A BOND THAT WILL GO TO ZERO?
What is not probable, but absolutely certain, is that investors who buy the new Austrian 100-year bond yielding 2.1% are going to lose all their money. Firstly, you wonder who actually buys these bonds. No individual investing his own money would ever buy a 100-year paper yielding 2% at a historical top of bond markets and bottom of rates.
The buyers are of course institutions who manage other people’s money. These will be the likes of pension fund managers who will be elated to achieve a 2% yield against negative short yields and not much above zero for anything else. These managers will hope to be long gone before anyone finds out the disastrous decision they have taken with pensioners’ money.
But the danger for them is that the bond will be worthless long before the 100 years are up. It could happen within five years.

This post was published at GoldSwitzerland on September 21, 2017.

The Demise of the Dollar: Don’t Hold Your Breath

So let’s look at currency flows, reserves and debt.
De-dollarization is often equated with the demise of the dollar, but this reflects a fundamental misunderstanding of the currency markets. The demise of the U. S. dollar has been a staple of the financial media for decades. The latest buzzword making the rounds is de-dollarization, which describes the move away from USD in global payments
Look, I get it: the U. S. dollar arouses emotions because it’s widely seen as one of the more potent tools of U. S. hegemony. Lots of people are hoping for the demise of the dollar, for all sorts of reasons that have nothing to do with the actual flow of currencies or the role of currencies in the global economy and foreign exchange (FX) markets.
So there is a large built-in audience for any claim that the dollar is on its deathbed.
I understand the emotional appeal of this, but investors and traders can’t afford to make decisions on the emotional appeal of superficial claims–not just in the FX markets, but in any markets.
So let’s ground the discussion of the demise of the USD in some basic fundamentals. Now would be a good time to refill your beverage/drip-bag because we’re going to cover some dynamics that require both emotional detachment and focus.

This post was published at Charles Hugh Smith on SEPTEMBER 21, 2017.

Dallas School Board Designates Founding Fathers As Having “Confederate Links”

“Just if we saw Confederacy named in it, we then highlighted it” says a school board spokesperson while describing a list which contained Thomas Jefferson, Ben Franklin, and Sam Houston.
The Dallas Independent School District is in damage control mode after an internal school board list was obtained by local press which shows schools under consideration for name changes due to possible “connections with slavery or the Confederacy.” News of the list, obtained by the Dallas Morning News early this week, caused outrage for the fact that it includes Texas revolutionaries and founders such as Sam Houston, James Bowie and William Travis, as well as Dallas pioneers James Gaston and William Brown Miller. It further names other early American figures who very obviously lived long before the existence of the Confederacy such as U. S. presidents Thomas Jefferson, James Madison and, inexplicably, Ben Franklin.

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

Equifax Accidentally Directs 200,000 Customers To Fake Phishing Website

And the hits just keep coming for Equifax, the once-trusted credit-monitoring firm that has been embroiled in one of the biggest corporate public-relations disasters in recent memory since disclosing that hackers had penetrated its cyber security defenses and absconded with sensitive personal and financial data belonging to 143 million Americans. Because of the types of data that were stolen, including drivers’ license, social security and credit-card numbers, experts have described the hack as possibly the most damaging corporate hack yet.
As if this weren’t enough to permanently sully the firm’s reputation (amid cries of ‘you had one job!’) – the staggering irony of a credit monitoring firm inadvertently divulging the sensitive information that it was supposed to safeguard hasn’t been lost on consumers) a series of subsequent disclosures have portrayed the firm’s executives as bungling, at best, and nefarious, at worst.
In the nearly two weeks since the story broke…

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

Why I didn’t sell Gold and Silver in 2011

I’d like to share a personal investment tale with you, the origins of which go back a ways. I became involved in physical precious metals/futures trading in 1972 after reading Harry Browne’s book, How to Profit from the Coming Devaluation.
Not unlike David Morgan (before we knew each other) I accumulated metal and silver futures contracts, and rode prices into the March 1980 top. I sold my futures, but held the metal until the Hunt Brothers were knocked out of the game after the CRIMEX changed the rules to contract-offset only, collapsing the silver price.
I watched silver drop through Harry Browne’s “sell if it goes below $37.50” call to $10.80. Then, during a classic 50% retracement to $25, I asked my broker where he though silver would bottom. His answer: “$5.00.” He called it almost to the dollar, but it took a generation to get there.
In 2000, after buying a one-ounce gold Krugerrand for my daughter’s high school graduation and watching people at her party view it with zero interest, I decided to move back into the sector, focusing on physical metals and mining company shares.
As the new bull market was getting underway in 2001, I decided to write on a piece of paper the following sentence: “On June 22, 2011, win, lose or draw, I will exit my position in the metals and mining shares.”

This post was published at GoldSeek on 21 September 2017.

SEPT 21/USA YIELD CURVE FLATTENS INDICATING RECESSION: GOES AGAINST THE WISHES OF THE FED/GOLD AND SILVER RAID CONTINUES BY OUR BANKERS WITH GOLD DOWN $19.95 AND SILVER DOWN 29 CENTS/HUGE SANCTIO…

GOLD: $1292.75 DOWN $19.95
Silver: $17.00 DOWN 29 CENT(S)
Closing access prices:
Gold $1291.60
silver: $16.97
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: $1303.97 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1299.20
PREMIUM FIRST FIX: $4.77
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1302.97
NY GOLD PRICE AT THE EXACT SAME TIME: $1298.20
Premium of Shanghai 2nd fix/NY:$4.77
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1297.35
NY PRICING AT THE EXACT SAME TIME: $12.96.08
LONDON SECOND GOLD FIX 10 AM: $1291.80
NY PRICING AT THE EXACT SAME TIME. 1291.80
For comex gold:
SEPTEMBER/
NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 29 NOTICE(S) FOR 2900 OZ.
TOTAL NOTICES SO FAR: 83 FOR 8300 OZ (0.2581 TONNES)
For silver:
SEPTEMBER
225 NOTICES FILED TODAY FOR
1,125,000 OZ/
Total number of notices filed so far this month: 6,106 for 30,530,000 oz

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

US Threat to Cut China Off from the International Dollar May Be Empty

Earlier this month, the US threatened to lock China out of the dollar system if it doesn’t follow UN sanctions on North Korea. Treasury Secretary Steven Mnuchin threatened this economic nuclear option during a conference broadcast on CNBC.
If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful.’
The threat may be meaningful, but it also might be empty.
Mnuchin was talking about locking the Chinese out of SWIFT – Society for Worldwide Interbank Financial Telecommunication. The system enables financial institutions to send and receive information about financial transactions in a secure, standardized environment. Since the dollar is the world reserve currency, SWIFT facilitates the international dollar system.

This post was published at Schiffgold on SEPTEMBER 21, 2017.

Interview: Louise Yamada on Stocks, Tech, and Interest Rates

While we normally see markets face pressure around this time of the year, it appears we may have dodged a bullet. This time on Financial Sense, we spoke with technical analyst Louise Yamada of LY Advisors about her take on equities, the tech sector, and what she looks for to determine market direction.
Markets Healthy
From the long-term perspective, markets appear to be healthy, Yamada stated. The advance-decline lines are confirming the new highs, she noted.
Some indicators have been showing negative divergence over the year, such as new highs versus new lows. While these have come back into positive territory recently, they haven’t exceeded the readings of the past year, leaving the negative divergences in place to possibly be overcome if things improve, Yamada noted.

This post was published at FinancialSense on 09/21/2017.

Toys R Us Bankruptcy: It’s Not All About Amazon

Toys R Us filed for bankruptcy earlier this week, a wicked head-shot to a retail sector that’s been reeling for months.
The TRU filing ranks as the second-largest US retail bankruptcy ever, according to S&P Global Market Intelligence.
Toys R Us had $6.6 billion in assets at the time of filing. Only Kmart was bigger. It had $16.3 billion in assets when it went bankrupt in 2002. Crushing debt pulled the giant toy seller under. According to a Bloomberg report, the company has piled up more than $5 billion in debt. Toys R Us reportedly pays more than $400 million a year on debt service alone.
The company says it plans to continue operating and secured a$3.1 billion operating loan to stabilize operations.
This is the biggest and perhaps most visible retail bankruptcy of the year, but Toys R Us is far from alone. To say the retail sector is struggling would be an understatement of epic proportions. Bloomberg summed up the retail landscape pretty succinctly.

This post was published at Schiffgold on SEPTEMBER 21, 2017.

“Whole Towns Have Been Wiped Out” Hurricane Maria Devastates Dominica; Death Toll Climbs To 15

Here are the 11 AM AST Key Messages for Hurricane #Maria pic.twitter.com/Cg1GorG7eU
— NHC Atlantic Ops (@NHC_Atlantic) September 21, 2017

Update (1:00 pm ET): The prime minister of Dominica says the death toll from Hurricane Maria has risen to 15, with 20 people still missing, according to the Associated Press. He expects the death toll in the island’s villages to rise.
In a testament to the sheer power of Hurricane Maria, the most destructive storm to hit the Caribbean in nearly a century, civilization on the tiny island of Dominica was essentially wiped out after Maria – then a category 5 storm – battered the island with 160 mph gusts, leveling whole towns and wiping out the island’s electricity and communications infrastructure.
The death toll on the island has climbed to 7 – but a complete count of casualties likely won’t be possible for at least a few more days, as the island’s shaken residents sift through the debris and contemplate what to do now that everything they and their neighbors owned has been destroyed.

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

Stocks and Precious Metals Charts – Not With a Bang, But a Whimper

‘Love does not make you weak, because it is the source of all strength, but it makes you see the nothingness of the illusory strength on which you depended before you knew it.’
Lon Bloy
Stocks were a little wobbly today, although the VIX continued to be at quite low levels for this year at least.
The economic news is mixed, as usual.
The dollar gave a little of yesterday’s sharp rally higher back today. The rally itself was more technical than anything else, given the long decline that it has already seen. Certainly any notions of a hawkish Fed raising rates with enough fortitude to make a difference in the dollar is sheer fantasy.

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

1 In 5 Students Endorse Violence To ‘Prevent’ Controversial Speakers

A new survey published by The Brookings Institution finds that about one-in-five undergraduate students approve of using violence to shut down controversial speakers.
A majority of undergraduate students at U. S. four-year colleges and universities also agreed with a hypothetical protest in which a group ‘opposed to the speaker disrupts the speech by loudly and repeatedly shouting so that the audience cannot hear the speaker.’
According to the survey, 51 percent of students agreed that such a demonstration would be acceptable, while 49 percent disagreed. Not surprisingly, the response to the hypothetical scenario was also largely partisan, with 62 percent of Democrats approving of the protest, compared to just 39 percent of Republicans .

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

A Look At How Nestle Makes Billions Selling You Groundwater In A Bottle

A few weeks ago we shared with readers a lawsuit filed in Connecticut against Nestle Waters North America, Inc. alleging that the water they marketed as Poland ‘Natural Spring Water’ was actually just bottled groundwater…the same water that runs through the taps of many American households.
Now a new investigation from Bloomberg Businessweek reveals how large water bottling companies choose their plant locations based not on the steady supply of pristine, natural drinking water, as their labels and other marketing campaigns would lead you to believe, but based on which economically depressed municipalities offer up the most tax breaks and have the most lax water laws.
As an example, even in the drought stricken state of California, Bloomberg notes that Nestle was able to strike a sweetheart 20-year supply agreement with the U. S. Forest Service to pay roughly $0.000001 for the water in each bottle that consumers blindly drop a couple bucks to purchase.

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

Albert Edwards: “Citizen Rage” Will Soon Be Directed At “Schizophrenic” Central Banks

Perhaps having grown tired of fighting windmills, it was several weeks since Albert Edwards’ latest rant against central banks. However, we were confident that recent developments out of the Fed and BOE were sure to stir the bearish strategist out of hibernation, and he did not disappoint, lashing out this morning with his latest scathing critique of “monetary schizophrenia”, slamming all central banks but the Fed and Bank of England most of all, who are again “asleep at the wheel, building a most precarious pyramid of prosperity upon the shifting sands of rampant credit growth and illusory housing wealth.”
Follows pure anger from the SocGen strategist:
These of all the major central banks were the most culpable in their incompetence and most prepared with disingenuous excuses. And 10 years on, not much has changed. The Fed and BoE are once again presiding over a credit bubble, with the BoE in particular suffering a painful episode of cognitive dissonance in an effort to shift the blame elsewhere. The credit bubble is everyone’s fault but theirs.
First, some recent context with this handy central bank holdings chart courtesy of Deutsche Bank’s Jim Reid which alone is sufficient to make one’s blood boil.

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

Bill Blain: “Let’s Pretend”

Blain’s Morning Porridge – Fed Acts, ECB Smoking – but what?
The Fed acts. Normalisation. Hints of a rate rise in December, confirmation of further ‘data-dependent’ hikes to come next year, and ending the reinvestment of QE income. Exactly as expected – although some say three hikes in 2018 is a bit hostage to the global economy. The effect: Dollar up. Bonds down. Record Stocks. Yellen threw the bond market a crumb when she reminded us low inflation will require a ‘response.’
Relax. US markets will sweat, but not break. Dollar ascendant.. Yen collapses.. What about Yoorp?
Not quite as simples in Europe.
I’m indebted to my colleague Kevin Humphreys on BGC’s Money Market desk for pointing out yet another Northern European central banker with a smug self-satisfied smile on his face this morning.
Klass Knot (Holland) has been telling us the European reflationary environment is improving to the extent where the tail risk of a deflationary spiral is no longer imminent. He said ‘robust’ economic developments have improved confidence inflation will rise in line with the ECB’s mandated aims. He added the appreciation of the Euro reflects an improving assessment of the EU’s economic success. And, he concludes the ECB should focus on the more important structural and institutional issues facing Europe, rather than the short-term stabilisation and crisis management – WHICH ARE NO LONGER REQUIRED.

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