Albert Edwards On The Selloff: “Comparisons With October 1987 Are Entirely Justified”

Last week, when equities were still blissfully hitting daily record highs, we showed the one “chart that everyone is talking about“, or if they weren’t they soon would be: the sharp, sudden disconnect between the junk bond and stock market …

… a disconnect which – as we showed at the time – was last observed in mid-August 2015, just days before the infamous ETFlash crash. Fast forward to day, with stocks suddenly hitting air pockets around the globe and rapidly catching down to junk yields…

This post was published at Zero Hedge on Nov 15, 2017.

NOV 15/A ANOTHER RAID ON GOLD AND SILVER: GOLD DOWN $5.15 AND SILVER DOWN 10 CENTS/MARKETS IN ASIA CRUMBLE WHICH SET THE MOOD FOR EUROPE AND THE DOW/THE ALL IMPORTANT CPI SHOWS CONSIDERABLE ADVAN…

GOLD: $1277.7 DOWN $5.15
Silver: $16.98 DOWN 10 cents
Closing access prices:
Gold $1278.30
silver: $17.01`
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: $1289.94 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1281.20
PREMIUM FIRST FIX: $9.39
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1292.56
NY GOLD PRICE AT THE EXACT SAME TIME: $1282.40
Premium of Shanghai 2nd fix/NY:$10.16
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1285.70
NY PRICING AT THE EXACT SAME TIME: $1285.70
LONDON SECOND GOLD FIX 10 AM: $1282.20
NY PRICING AT THE EXACT SAME TIME. 1282.60
For comex gold:
NOVEMBER/
NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH:0 NOTICE(S) FOR nil OZ.
TOTAL NOTICES SO FAR: 991 FOR 99,100 OZ (3.082TONNES)
For silver:
NOVEMBER
2 NOTICE(S) FILED TODAY FOR
10,000 OZ/
Total number of notices filed so far this month: 874 for 4,370,000 oz
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Bitcoin: BID $7121 OFFER /$7145 up $532.00 (MORNING)
BITCOIN : BID $7257 OFFER: $7282 // UP $668.00(CLOSING)

This post was published at Harvey Organ Blog on November 15, 2017.

The Last Time These 3 Ominous Signals Appeared Simultaneously Was Just Before The Last Financial Crisis

We have not seen a ‘leadership reversal’, a ‘Hindenburg Omen’ and a ‘Titanic Syndrome signal’ all appear simultaneously since just before the last financial crisis. Does this mean that a stock market crash is imminent? Not necessarily, but as I have been writing about quite a bit recently, the markets are certainly primed for one. On Wednesday, the Dow fell another 138 points, and that represented the largest single day decline that we have seen since September. Much more importantly, the downward trend that has been developing over the past week appears to be accelerating. Just take a look at this chart. Could we be right on the precipice of a major move to the downside?
John Hussman certainly seems to think so. He is the one that pointed out that we have not seen this sort of a threefold sell signal since just before the last financial crisis. The following comes from Business Insider…
On Tuesday, the number of New York Stock Exchange companies setting new 52-week lows climbed above the number hitting new highs, representing a ‘leadership reversal’ that Hussman says highlights the deterioration of market internals. Stocks also received confirmation of two bearish market-breadth readings known as the Hindenburg Omen and the Titanic Syndrome.
Hussman says these three readings haven’t occurred simultaneously since 2007, when the financial crisis was getting underway. It happened before that in 1999, right before the dot-com crash. That’s not very welcome company.

This post was published at The Economic Collapse Blog on November 15th, 2017.

Amazon Says It’s “Almost Ready” To Get 1,000s Of Grocery Store Cashiers Fired

Late last year we noted Amazon’s efforts to ‘disrupt’ the traditional grocery retail model by introducing small format stores that allow customers to simply walk in, pick up what they want and walk out. The concept store, dubbed AmazonGo, tracks a customer’s every move, including each item they remove from store shelves, allowing them to skip long, often frustrating, check out lines (see: Amazon Goes Offline With Bricks-And-Mortar Grocery Chain; Envisions Opening 2,000 Stores).
Now, after nearly a full year of testing their Seattle concept store with employees, Amazon says their cashier-less grocery store is just about ready to go live. As Bloomberg notes this morning, the company has already begun hiring construction managers and marketing staff to build out a store base.
The e-commerce giant unveiled Amazon Go last December, saying it planned to open the store to the public early this year. However, the company encountered technical difficulties and postponed the launch to work out the bugs, The Wall Street Journal reported in March.
Seven months later, challenges remain, but the ‘just walk out’ technology has improved markedly, says the person, who requested anonymity to speak freely about the project. And in a sign that the concept is almost ready for prime time, hiring for the Amazon Go team has shifted from the engineers and research scientists needed to perfect the platform to the construction managers and marketers who would build and promote the stores to consumers.

This post was published at Zero Hedge on Nov 15, 2017.

Anti-White Hate Crimes Are The Fastest Growing Racial Crimes In America

A new FBI report indicates that hate crimes committed against white Americans are the fastest growing racial hate crimes in the United States.
The FBI report on 2016 Hate Crime Statistics shows that in 2016, there were 876 reported anti-white hate crime offenses in the United States. In 2015, this number was 734, indicating a 19.34 percent increase.
There were more racial hate crime offenses altogether in 2016 compared to 2015 – the total tally of hate crimes in 2016 was 6,121, compared to 5,850 in 2015. More than half of those incidents were motivated by the victim’s race.
There were 4,029 single-bias incidents that targeted ‘Race/Ethnicity/Ancestry’ in 2015, compared to 4,229 in 2016.
Anti-Hispanic or Latino hate crimes also increased in 2016. In 2015, the number of offenses targeting Hispanic/Latino Americans was 379. In 2016, that increased to 449, an increase of 18.46 percent. Anti-Black hate crimes actually declined by three offenses.

This post was published at Zero Hedge on Nov 15, 2017.

SegWit2x’s Failure Confirms Bitcoin’s Status As Digital Gold

When 10,000 Bitcoins were used to buy two pizzas, the digital currency was a truly decentralized peer-to-peer payment network that operated across the globe instantly.
Today, the price has risen nearly a million-fold, but the network is no longer quite as functional as it was back in those days.
Bitcoin still struggles with its identity, as many would like it to revolutionize money, but they are equally happy sitting on hordes of it and watching it appreciate in value faster than perhaps any other asset in history.
A single dollar invested in Bitcoin on the original Bitcoin pizza day would be worth over $3 mln today.
While upgrades have been made to Bitcoin along the way, it looks like Bitcoin is becoming less of a payment network and is instead evolving into digital gold. The failure of SegWit2x, which aimed to decrease transaction costs and improve confirmation speed, failed for a number of reasons.
Some of them were good, and some were mere straw men. But at the end of the day, one thing is clear: there is clearly no rush to increase Bitcoin’s capacity.

This post was published at Zero Hedge on Nov 15, 2017.

BANK ADMITS FIAT CURRENCIES ARE FAILING AND CRYPTOCURRENCIES MAY REPLACE THEM

As the transition towards a blockchain based economy continues, the established financial powers are desperately trying to stay relevant. In an attempt to boost their credibility, analysts at Deutsche Bank are finally admitting that state-run fiat currencies are becoming obsolete. For years, blockchain entrepreneurs and other critics of central banking have been branded either conspiracy theorists or criminals. But recently, those controversial opinions about the inevitable changes coming to the world’s financial system are being echoed by mainstream pundits.
Deutsche Bank’s top strategist, Jim Reid, recently articulated a view on the economy that is shared by many but rarely talked about:
‘Central banks and governments which have ‘dined out’ on the 35 year secular, structural decline in inflation are not able to prevent it rising as raising interest rates to suitable levels would risk serious economic contraction given the huge debt burden economies face. As such they are forced to prioritise low interest rates and nominal growth over inflation control which could herald in the beginning of the end of the global fiat currency system that begun with the abandonment of Bretton Woods back in 1971.’

This post was published at The Daily Sheeple on NOVEMBER 15, 2017.

Venezuela Signs $3.2 Billion Debt Restructuring Deal With Russia

As Venezuela teeters right on the brink of complete financial collapse, Bloomberg reports that Russia has agreed to restructure roughly $3.2 billion in outstanding obligations. While details of the restructuring agreement are scarce, both sides reported that the deal spreads payments out over 10 years with minimal cash service required over the next six years.
Russia signed an agreement to restructure $3.15 billion of debt owed by Venezuela, throwing a lifeline to a crisis-wracked ally that’s struggling to repay creditors.
The deal spreads the loan payments out over a decade, with ‘minimal’ payments over the first six years, the Russian Finance Ministry said in a statement. The pact doesn’t cover obligations of state oil company Petroleos de Venezuela SA to its Russian counterpart Rosneft PJSC, however.

This post was published at Zero Hedge on Nov 15, 2017.

Russell Napier: Debt Deflation Worries Are Starting to Rise Again

There’s been very little deleveraging after the last financial crisis and, in fact, debt levels are at new records globally, which means investors should be thinking about the risk of ‘debtflation,’ Russell Napier, editor of The Solid Ground, told FS Insider last week (see Russell Napier on Debt Deflation: Too Much Debt, Not Enough Money for audio).
No Deleveraging
It isn’t the case that we’ve seen much deleveraging since the financial crisis, Napier noted. Globally, the debt-to-GDP ratio is at an all-time high, he added, significantly above the levels seen in 2007.
Though there has been some deleveraging in the household sector, Napier stated, this isn’t the whole picture. It ignores the releveraging of the government during the last crisis, and also that corporations have been adding significant amounts of debt.
If we look globally, emerging markets are fueling the rise to a new high in the debt-to-GDP ratio. It isn’t just China either, but other countries as well that are responsible for this effect.
‘If the world was fragile in 2007 because there was too much debt and not enough GDP, it is significantly more fragile today,’ Napier said.

This post was published at FinancialSense on 11/14/2017.

Stocks and Precious Metals Charts – Stock Options Expiration on Friday – As If Maybe Someone Could Hear

We will have a stock option expiration on Friday.
I believe that this is driving some of the action in the precious metals.
Not in the metal itself, but by extension to the miners which follow the price of the metals, and tend to be a favorite of options players, and a rather volatile crew.

This post was published at Jesses Crossroads Cafe on 15 NOVEMBER 2017.

Two-Thirds of Top Silver Miners Suffering Significant Production Declines

The world silver market may be on the verge of a major supply crunch.
Two-thirds of the top silver miners have suffered significant production decreases in 2017, according to information released by World Metal Statistics.
Through the first eight months of this year, silver production in Chile has dropped 20%. Austrailian production has fallen by 19%. Silver production in Mexico is down 2%. Peru has seen a 1% production decline. And China has had the biggest drop in mine output, according to the report, falling by a whopping 25%.
A report by SRSrocco identifies several factors driving silver mine production lower.
I believe global silver production will take a big hit this year due to several factors including, falling ore grades, mine closures, and strikes at various projects.’
The report highlights some of the production woes for major producers. Overall, production at top primary silver miners has fallen 9 million ounces so far in 2017 compared to the same period last year.

This post was published at Schiffgold on NOVEMBER 15, 2017.

Tax Reform Shaping Up to Be Bad for Individuals, High-Tax States

Details of the GOP tax reform bill have been released and what we’re finding is that it has the potential to impact taxpayers in several important ways, especially depending on where they live.
This time on Financial Sense’ Lifetime Income Series, Jim Puplava talked about what we can expect to see if tax reform passes.
For related podcast, see Tax Reform – Urgent – Call Your Advisor!
Tax Brackets Are Shifting
Historically, Republicans have focused on getting rid of deductions and Democrats have focused on raising tax rates. This can be good to an extent, but often, we’ve seen deductions taken away, only to see tax rate increases shortly thereafter.
This bill does several things, Puplava noted. First, under the House version, two tax rates are actually raised. Those in the 10 percent tax rate bracket are bumped into the 12 percent bracket, and those in the 33 percent bracket are bumped into the 35 percent bracket.
Two tax rates actually fall: the 15 percent rate drops to 12, and the 28 percent rate drops to 25 percent.

This post was published at FinancialSense on 11/15/2017.

Millions Of Millennials Could Be Trading Sex For Their Next Debt Payment – Here’s How

As the storm clouds of peak stupidity gather over the heads of the millennial generation who were conned by banks, government, and universities to take out excessive amounts of leverage in auto loans, credit cards, and student debt; millions have flocked to a new website seeking ‘Sugar Daddies’ and or even ‘Sugar Mommies’ to pay off their debt amid an economic environment where wage growth remains non-existent.
Today’s real simple get-out-of-debt option for the broke college/post college millennial is through an unconventional dating website called SeekingArrangement.com.
In 2016, the website identified some 2.5 million college students who turned to the site in an act of desperation to find a ‘Sugar Daddy’ or even a ‘Sugar Mommy’ in exchange of personal time for straight cash.
The website’s mission is to ‘delivers a new way for relationships to form and grow. Sugar Babies and Sugar Daddies or Mommas both get what they want, when they want it’.
We find it hard to believe the intention of the website, when created by MIT graduate Brandon Wade in 2006, was to have 25% of the 10 million users – broke college millennials.
According to Business Insider,
A couple years ago, the site noticed an uptick in the number of members signing up with a university email address, Alexis Germany, a spokesperson for SeekingArrangement.com, told Business Insider.

This post was published at Zero Hedge on Nov 15, 2017.

Watch Live: Trump Makes “Major Statement”

Two days ago, President Trump tweeted that he would make a “major statement” upon his return from Asia. That time has come. Today at 3:30pmET, President Trump will let us all know… Is it war with North Korea? Rejoining TPP? Denouncing Roy Moore? Declaring victory over tax reform and healthcare repeal? Celebrating his relationship with China? Banning NYT and CNN? Admitting he really did collude with Putin?
Of course, there’s a lot happening in Washington right now, and Trump’s hinted-at announcement could be in reference to one of any number of issues. Will he deliver an update on the administration’s position regarding tax reform as two bills that differ in dramatic fashion wend through Congress? Perhaps some type of security announcement? Or the revelation that the US has finally entered into talks with North Korea after Trump adopted a notably softer tone toward his favorite Asian antagonist over the weekend?


This post was published at Zero Hedge on Nov 15, 2017.

Looking For Inflation In All The Wrong Places

A policeman sees a drunk man searching for something under a streetlight and asks what the drunk has lost. He says he lost his keys and they both look under the streetlight together. After a few minutes the policeman asks if he is sure he lost them here, and the drunk replies, no, and that he lost them in the park. The policeman asks why he is searching here, and the drunk replies, ‘this is where the light is’. – The Streetlight Effect
The drunk in the above story is an idiot, of course. But no more so than modern economists who can’t find inflation because they’re looking only at the part of the economy covered by their government’s Consumer Price Index.
But gradually, grudgingly, a handful of mainstream economists do seem to be figuring out that the soaring value of stocks, bonds, real estate, fine art, collectibles and cryptocurrencies is a legitimate sign of a depreciating currency and future instability. Inflation, in other words. From yesterday’s Morningstar:
Lack of inflation is a global issue
(Morningstar) – The lack of inflation is a global issue. Unemployment is at cyclical lows in the US, Germany, and Japan, yet in each of these countries there is only small evidence that wages are picking up. No doubt globalisation and technology are common factors that have helped constrain wages across countries.

This post was published at DollarCollapse on NOVEMBER 14, 2017.

Retail Sales Growth Slows In October As Storm Surge Fades

Following September’s unprecedented storm-related surge in retail sales (which was revised even higher), October was a fall back to reality with a 0.2% MoM rise (better than expected 0.0% though), pushing the YoY growth back down to 4.6%.
Retail sales were up a modest 0.2% in October, following September’s 1.9% revised (from 1.6%) gain.

This post was published at Zero Hedge on Nov 15, 2017.

Activists, Including Cerberus, Take 6.9% Stake In Deutsche Bank

The Deutsche Bank story has evolved rapidly this morning: Bloomberg reports that Deutsche Bank had attracted a ‘new top investor’ in the ongoing process of its endless restructuring, then Handelsblatt tweeted that Morgan Stanley acquired a 6.68% shareholding on behalf of activist investors.
The bank confirmed shortly thereafter that the new DB shareholder was Cerberus Capital Management, the New York-based private investment form with $40Bn AUM. Cerberus CEO, Steve Feinberg, owns 3% according to the report, although it’s not clear which parties own the other 3.86% acquired by Morgan Stanley at this stage.
Cerberus specializes in distressed investing which, obviously, is a perfect description of Deutsche Bank’s current circumstances. It was set up in 1992 by Feinberg and William L. Richter, currently senior managing director. Feinberg started his career as a trader at Drexel in 1982 and was described as ‘secretive’ by the New York Times. He famously said to Cerberus shareholders.

This post was published at Zero Hedge on Nov 15, 2017.