A ‘War’ Has Been Declared On The Republican Establishment, And We Are Going To Win

It is time to flush the toilet in Washington D. C., and I am so glad that Steve Bannon has decided to declare ‘war’ on the Republican establishment. For decades, these globalists have told us what we want to hear during election season, but then once they take office they betray us over and over again. It is time to hold Republican members of Congress responsible for betraying the base, and I am so thankful that Bannon is organizing anti-establishment candidates into a cohesive movement. We are going to challenge Republican incumbents all over the nation in 2018, and we are going to win over and over again.
Just look at what happened in Alabama. The Republican establishment spent more than 30 million dollars against Roy Moore and we still won by a very wide margin.
Now we are going to take that template and repeat it all over the country. During an interview with Sean Hannity on Monday, Steve Bannon boldly declared that his forces are going after every Republican Senator that is up for re-election in 2018except for Ted Cruz…
On Monday’s edition of Hannity, Breitbart executive chairman and former Trump adviser Steve Bannon talked about his plan to challenge every Republican Senator up for re-election in 2018 in the primary, except Sen. Ted Cruz. Bannon said Republican incumbents have committed ‘economic hate crimes’ against the ‘forgotten man.’

This post was published at The Economic Collapse Blog on October 10th, 2017.


GOLD: $1291.40 UP $8.90
Silver: $17.16 UP 23 CENT(S)
Closing access prices:
Gold $1288.10
silver: $17.11
PREMIUM FIRST FIX: $8.26 (premiums getting larger)
Premium of Shanghai 2nd fix/NY:$17.00 (PREMIUMS GETTING LARGER)

This post was published at Harvey Organ Blog on October 10, 2017.

NFL Chief Goodell Flip-Flops: “We Believe Everyone Should Stand For The Anthem”

Update 2 (6 pm ET): While NFL owners are preparing to discuss a unilateral rule change to ban kneeling, Deadspin has pointed out that, technically, such a rule change has already been made.
An excerpt from the league’s ‘game operations manual’ – officially titled the ‘Policy Manual for Member Clubs” – that has made the rounds on social media clearly shows that players can be fined of suspended if they don’t stand, or aren’t present on field for, the anthem.
.@mortreport referencing @NFL game operations manual policy for national anthem on Monday Countdown. Here it is in full: pic.twitter.com/ifSMYuvOV9
— Kevin Seifert (@SeifertESPN) October 9, 2017

This post was published at Zero Hedge on Oct 10, 2017.

Can We Blame the New iPhone’s Mediocrity on Inflation?

Apple held its 10th anniversary iPhone press event on 9/12. As expected, the tech giant released new iterations of their decade-old smartphone as well as the new iPhone X. Whereas the media has focused on innovation and technology, the event also tells another story: how the company uses the perception of innovation as a strategy for dealing with inflation.
Yes, inflation. This is despite the fact the consumer tech market generally – and accurately – is characterized as deflationary: new generations of improved and innovative devices are released at a rapid pace and sold at unchanging or even falling prices. In other words, we get better and cheaper computers and other tech gadgets. But even though price deflation accurately describes this industry, it is not unaffected by inflationary pressures on prices due to the Fed’s quantitative easing.
Consequently, Apple needed to find a way to jack up prices for their devices to maintain profitability. But with the consumer tech market being extremely competitive, even a market leader cannot simply raise prices without potentially losing market share. Being Apple, they find a solution in marketing.
The Marketing The iPhone set a standard ten years ago both in terms of the look-and-feel of the smartphone and the pricing. Throughout the past decade, the dollar price of premium smartphones, including the annually updated iPhone, has remained basically the same. With only very few exceptions, premium smartphones sell at a standard $700-800.

This post was published at Ludwig von Mises Institute on Oct 10, 2017.

Market Talk- October 10th, 2017

News today of the Catalan leader Carles Puigdemont putting a delay on this declaration of independence to try and have an amicable solution with the Spanish Government in Madrid. Pushed the EUR/USD rates up 0.54% to 1.18 on the day.
Few other announcements around the world, the Swiss unemployment rates dropped from 3.2% to 3.1% and the German trade balance was 21.6B compared to a 20B estimate which again helped buoy the CHF and EUR respectfully. The French and Italian Industrial production data for August was mixed, with the French missing expectations but the Italians outperforming.
Manufacturing production in the UK was good, growing 0.4% for the 2nd month as one would expect with the cheaper pound pre-Brexit decision. This helped the GBP move up to 1.32 against the dollar.
Asian markets again performing well today, the Hang Seng Index was up 0.58% removing yesterday’s losses. Nikkei opened after the long weekend to close up 0.64% while China’s Shanghai Composite closed up 0.26%.
European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.40%, while the DAX and CAC 40 dropped 0.21% and 0.04% respectively. IBEX 35 was down 0.92%, still with confidence weak with the uncertainty of the Catalan independence looming offsetting yesterday’s gains.

This post was published at Armstrong Economics on Oct 10, 2017.

Steve Cohen Loses His Top Trader

Steven Cohen’s veteran top trader is leaving, just months before the formerly-barred hedge fund manager is expected to resume managing outside investor money.
As the NYT’s Matt Goldstein reports, Phil Villhauer, 52, who started working for Cohen’s then-SAC Capital in 2002, was promoted to global head of trading at the successor company, Point72, shortly after Cohen was forced to stop accepting outside investors’ money as part of an insider trading settlement with federal authorities, converting his hedge fund into an $11 billion family office.
‘For 15 years, Phil Villhauer has been an integral member of the firm’s family,’ Mr. Cohen and Point72’s president wrote Tuesday in an internal email that was reviewed by The New York Times. ‘We are sad to let you know that he is retiring from Point72.’ As is well-known, SAC was one of Wall Street’s most successful hedge funds for years, largely as a result of reliance on “expert networks” and “information arbitrage” (a politically correct term) allowing it to charge some of the industry’s highest fees (usually in the 3 and 45 vicinity), managing more than $14 billion in assets, although it subsequently emerged that the reason for SAC’s success was insider trading, to which the company pled guilty in 2013, three years after Zero Hedge first made the accusation. The guilty plea required Cohen to stop managing money for outside investors, and the billionaire converted his hedge fund into a family office to trade his personal fortune.

This post was published at Zero Hedge on Oct 10, 2017.

How to Work in Retirement and Love It

Wall Street endlessly gushes about retirement. Its TV commercials show how wonderful life will be in our golden years – when we are old, yet still healthy and wealthy enough to go hang-gliding every day.
Meanwhile, out here in the real world, most working-age Americans don’t want to talk or even think about retirement. Often this is because they know they aren’t saving enough and probably will have to work until they drop dead.
This is the elephant in the room. 10,000 US Baby Boomers turn 65 every day. For most, life at that milestone won’t look much like the TV commercials.
That sounds dire, but it doesn’t have to be. Let’s look at ways this problem could be solved.
But first, some more facts.
Retirement Shortfall
Lately, I’ve been working with John Mauldin to research the huge public pension fund shortfalls. But it’s not just big funds that don’t save enough – most individuals are in the same position, or worse.
Judging from the emails and comments I’m getting, Connecting the Dots readers are more financially sophisticated than the general public. You’ve probably prepared for retirement enough to live comfortably.

This post was published at Mauldin Economics on OCTOBER 10, 2017.

The Case for Privatizing Oceans and Rivers

Quarterly Journal of Austrian Economics 20, no. 1 (Spring 2017) [Water Capitalism: The Case for Privatizing Oceans, Rivers, Lakes, and Aquifers by Walter E. Block and Peter L. Nelson] This collaboration between Block (free-market economist) and Nelson (free-market engineer) offers a little bit of anarcho-free-market-everything with which to engage the interested reader. Block, as always, brings his combative spirit and formidable reasoning abilities. He is ready to take on all comers including, at one point in the book, his own co-author! Nelson’s interesting case-studies highlight particularly well what happens when property rights and market forces are suppressed – whether on land or on water.
The book is a fusion of two complementary tomes, a circumstance that can often make for choppy reading. At times, it is hard going. But the pilgrim who perseveres will in time be rewarded with many interesting insights, as well as a glimmer of what a consistent free-market water-rights regime would (or should) look like.
The first half of the book is a theoretical section of sorts, laying down the case for free-market economics in a property-rights context. This is followed by several interesting case studies that reinforce the theoretical discussion at the tract’s beginning. A marvelous list of provocative topics is covered (albeit briefly for most of the topics). These mostly pertain to water-rights issues, but often the range broadens and discussion strays into more generalized property issues (e.g. the shameful treatment of Cliven Bundy [re. p. 40]). Here also is where the authors re-state their free-market roots, adding a second crucial concept: the problem of ‘government failure’ which waxes in importance as the case studies are reached. These authors are not bamboozled by the sight of bureaucrats bringing gifts to the private sector, and they also understand about free lunches.

This post was published at Ludwig von Mises Institute on Oct 10, 2017.

This Is What The Death Of A Nation Looks Like: Venezuela Prepares For 2,300% Hyperinflation

Back in January 2016, we showed what the collapse of Venezuela looks like, when in addition to charting Venezuela’s imploding currency (which back then was trading at a positive expensive 941 bolivars to the dollar), we presented what at the time was the IMF’s latest Venezuela inflation forecast, which stunned us as it surged from 275% in the just concluded 2015 to a whopping 720% at the end of 2016.
Fast forward nearly two years until today, when the IMF released its latest estimate of what it believes will happen to Venezuela’s economy in the coming year and a half. What is striking, besides the fact that Venezuela has somehow still managed to avoid bankruptcy, is that the IMF now expects Venezuela’s hyperinflation to reach a staggering 2,349% in 2018, after rising by “only” 626% this year, the highest estimate for any country tracked by the IMF. While the South American country stopped reporting economic data in 2015, the IMF estimates that last year inflation clocked in around 254%, a number which is set to soar in the coming years for obvious reasons.

This post was published at Zero Hedge on Oct 10, 2017.

Turning Point Nations On The Stage

Many are the turning points with individual nations, once firmly in the Western alliance camp, but no longer. They are flipping eastward or in the case of China cutting the major cords. The Shanghai developments are by far the most important in the financial setting. The Petro-Dollar is seeing its last months after a 43-year reign as defacto standard. Its retirement will begin in the East, then spread to the decaying loyal Western nations. The entire geopolitical chessboard is becoming more aligned with the Eurasian Trade Zone, one nation after another. Its cornerstones are Russia, China, and increasingly Iran. It has gathered some Eastern European countries like Turkey, and will gather more. It has pursued the Middle East oil monarchies, and will succeed in lassoing them into the zone corral. Whether they deploy financial connections, or trade ties, or security links, these nations no longer see the United States and British (who walk the American dog with a monetary leash) as the leading global players any longer. The leaders are China with its financial and industrial might and Russia with its energy and commodity strength.
As the global structure shifts in alignment, many nations will be involved in the shifts directly. It can be perceived as chess pieces in movement. The many bilateral connections are being altered, so as to fit within the new forces. The power center is moving from West to East, although certainly very slowly. Some call it a giant ship changing course, but the Jackass thinks of it more as a very large baby being formed with numerous umbilical cords, which requires a very long gestation period like that for an elephant. The Eastern centers must remove the vestiges of old colonial power links. It is a very slow process, whereby the East must accept losses from the uprooted stanchions. The Eastern leaders measure their risks, make the changes, and consider the losses as part of a reorganization much like done with the better observed structural changes done by IBM or Chrysler.

This post was published at GoldSeek

The News of Gold’s Demise Is Greatly Exaggerated: Why Cryptos Won’t Kill Gold

Cryptocurrencies have shown a lot of resiliency. Every time doubters proclaim Bitcoin is on the mat for good, it manages to claw its way back up.
Bitcoin went into a freefall after the Chinese government announced plans to ban cryptocurrency trading on all domestic exchanges. But early Monday, the digital currency hit its highest level since early September.
The steady climb of Bitcoin and its meteoric rise this year have led to some speculation that digital currencies may usurp gold. There have been headlines proclaiming cryptocurrencies are killing the yellow metal. But there are some fundamental reasons cryptos will never replace gold.
A recent Forbes article pointed out some important characteristics of gold that will prevent Bitcoin and other cryptocurrencies from ever being able to completely push it out.
Most of the focus now is on Bitcoin. But as Forbes points out, there are somewhere in the neighborhood of 2,100 digital currencies traded in the world right now, with a combined market cap of nearly $150 billion, according to Coinranking.com. We are in the early stages of the crypto revolution. We have no idea which cryptos will ultimately shake out as winners and losers. Betting on any one crypto at this point is risky.

This post was published at Schiffgold on OCTOBER 10, 2017.

Jack Bogle Slams Wall Street’s “Unrealistic” Earnings Guesses, Says Market Valuations “Rather High”

88-year-old investing icon John “Jack” Bogle, founder of the Vanguard Group, says that the market seems to be “fully valued,” and suggests investors adjust their asset allocation.
In an interview with The Street, Bogle said:
“The valuations of stocks are, by my standards, rather high,” adding that “my standards, however, are high.”
When considering stock valuations, Bogle’s method differs from Wall Street’s. For his price-to-earnings multiple, Bogle uses the past 12 months of reported earnings by corporations, GAAP earnings, which include “all of the bad stuff,” to get a multiple of about 25 or 26 times earnings.
“Wall Street will have none of that,” said Bogle. “They look ahead to the earnings for the next 12 months and we don’t really know what they are so it’s a little gamble.”

This post was published at Zero Hedge on Oct 10, 2017.

LEAKED: Worst Data Hack in US History Gets Worse

What else has Equifax not disclosed yet?
The Equifax hack just keeps getting worse. The first revelations were made on September 7, that Equifax had discovered on July 29 that it had been hacked sometime between ‘mid-May through July,’ and that the crown jewels of consumer data, including Social Security numbers, on 143 million US consumers was stolen. The tally has since been raised to 145.5 million consumers. In terms of quantity and sensitivity, it was the worst consumer data hack in US history.
‘In some instances’ driver’s license data were also stolen, the company disclosed at the time. Driver’s license data includes license number, name, address, data of birth, and basic physical features of the person. This is important and valuable data for identity thieves and other fraudsters and fills in some gaps in the other data that had been stolen.
But without telling consumers, Equifax went around and told its customers – mainly banks and credit card companies – that the tally of driver’s license data that had also been stolen, previously minimized with the phrase ‘in some instances,’ amounted to driver’s licences of 10.9 million consumers.

This post was published at Wolf Street by Wolf Richter ‘ Oct 10, 2017.

Home Depot Panics Over Millennials; Forced To Host Tutorials On Using Tape Measures, Hammering Nails

As wall street analysts celebrate the coming of age of the millennial generation, a group of young people who were supposed to lead another revolutionary wave of consumerism if only they could work long enough to escape their parents’ basement, retailers like Home Depot are panicked about selling into what will soon be America’s largest demographic…but not for the reasons you might think.
While avocado resellers like Whole Foods only have to worry about creating a catchy advertising campaign to attract millennials, Home Depot is in full-on panic mode after realizing that an entire generation of Americans have absolutely no clue how to use their products. As the Wall Street Journal points out, the company has been forced to spend millions to create video tutorials and host in-store classes on how to do everything from using a tape measure to mopping a floor and hammering a nail.
Home Depot’s VP of marketing admits she was originally hesitant because she thought some of their videos might be a bit too “condescending” but she quickly learned they were very necessary for our pampered millennials.
In June the company introduced a series of online workshops, including videos on how to use a tape measure and how to hide cords, that were so basic some executives worried they were condescending. ‘You have to start somewhere,’ Mr. Decker says.
Lisa DeStefano, Home Depot vice president of marketing, initially hesitated looking over the list of proposed video lessons, chosen based on high-frequency online search queries. ‘Were we selling people short? Were these just too obvious?’ she says she asked her team. On the tape-measure tutorial, ‘I said ‘come on, how many things can you say about it?’ ‘ Ms. DeStefano says.
And just in case you think we’re joking and/or exaggerating, here is Home Depot’s tape measure tutorial in all its glory:

This post was published at Zero Hedge on Oct 10, 2017.

October Realized Volatility Is Now The Lowest On Record

After September was declared the lowest volatility month on record, October is starting auspiciously, if only for the vol sellers.
After last week stocks rose again on renewed hopes of a Trump tax deal and following a payrolls report which showed the hottest wage inflation since the financial crisis, the S&P 500 closed the week 1.19% higher, while the Russell 2000 added 1.30%, the NASDAQ 100 increased 1.43%, and the Dow gained 1.65%.
And while implied vol limped up slightly week-over-week as the VIX increased 0.14 points to 9.65 last Friday, this was the eighth consecutive close below 10. However, on Thursday the VIX closed at 9.19, the lowest close of all time. The trend appears set to continue, because as Bank of America’s derivatives expert Benjamin Bowler writes while October tends to have the highs volatility of all months of the year, this time is different and currently the annualized month-to-date realized vol for the S&P is 5.22%, the lowest October we’ve seen on record spanning back to 1928. For comparison, the median SPX realized vol in October is 17.22%, while the 1st percentile is 6.15%. Interestingly, the other four lowest vol Octobers were all in the 1960s (’61, ’64, ’65, and ’68), the period prior to “The Great Inflation” and rapidly rising rates of the 1970s.

This post was published at Zero Hedge on Oct 10, 2017.

Catalan Leader Asks For Mandate To Declare Independence, Suspends Consequences Of Vote “For Weeks”

Following a brief intro, thanking supporters, proclaiming this a ‘Spain’ issue, and outlining the referdmum’s success, Puigdemont turned more angry, slamming the “humiliation, aggression, and Catalanophobia” of Madrid, suggesting that Spaniards are victims of propaganda, and proclaiming that “many Catalans believe that the only way to guarantee survival is for Catalonia to become a State.”
“We’re not crazy, delinquents or doing a coup,” Puigdemont says.
Then he paused…saying Catalonia has won the right to independence.
“I assume my mandate to convert Catalonia in an independent State.”
And then ads that he calls for weeks of dialog, suspending the independence referendum result.

This post was published at Zero Hedge on Oct 10, 2017.

A Constant Bull Market

A lot can change in a month’s time and a lot has in many pockets of the capital markets.
The iShares Micro-Cap ETF (IWC) has increased 10.1% The S&P 500 financial sector has increased 8.5% The Russell 2000 has increased 7.5% The S&P Midcap 400 Index has increased 5.6% The yield on the 10-yr Treasury note has increased 30 basis points to 2.36% The U. S. Dollar Index has increased 1.7% to 93.88; and The CBOE Volatility Index has collapsed 13.8% to 10.03 A concise analysis of matters would indicate that the last 30 days has been a very good period for the stock market, which has featured record highs for the major indices, broad-based participation in the breakout to record highs and a pervasive sense that the glass is more than half full for the stock market into year end.
It hasn’t been so great for the Treasury market, which has come unwound a bit on the unwinding of safety trades.
What has precipitated the sudden turn higher (lower) for the stock market (Treasury market)?

This post was published at FinancialSense on 10/10/2017.

Indian Gold Demand Up in September Even With Tax Rule

After nearly tripling in August, demand for gold in India remained strong last month, despite a tax rule that put a damper on high-dollar jewelry purchases.
Gold demand rose 31% year-on-year in September. Imports came in at 48 tons, according to a Reuters report.
Higher purchases by India, the world’s second-biggest consumer, could lend support to global prices that are trading near their highest level in a week. The higher imports may also widen the South Asian country’s trade deficit.’
Continued strong demand in India was something of a surprise. It was fighting headwinds caused by a tax rule that went into effect back in August. The government included Indian jewelers under the Prevention of Money-Laundering Act. The rules increased compliance requirements for high-dollar jewelry purchases. Buyers had to provide their income tax identity for transactions above 50,000 rupees ($766). Analysts said the requirements were hindering high-value deals.

This post was published at Schiffgold on OCTOBER 10, 2017.