• Category Archives Government
  • How to Learn About Finance

    Lots of people ask me for good beginner books about finance.
    That’s one of the hardest questions I get.
    I think back to when I was learning about finance – one of my Coast Guard shipmates had these things called ‘mutual funds,’ so I found some free literature about mutual funds and started reading.
    At the time, I was living in an economically unfortunate town in coastal Washington State. There was a used bookstore in town. I bought two books: A Random Walk Down Wall Street, by Burton Malkiel, and Bogle on Mutual Funds, by John Bogle. The first two books I read were books on indexing!
    After reading them, I knew with every cell in my body that the Efficient Market Hypothesis was wrong, and had to be disproved.
    But those books were a good start. So sometimes when people ask me what books they should start with, I tell them about Malkiel and Bogle. Then I tell them that those books are all wrong. They look at me like I have a cabbage for a head.

    This post was published at Mauldin Economics on JULY 27, 2017.


  • BAT Is Dead: Republicans Kill Border Adjustment Tax

    The Trump fiscal agenda – which these days really means tax reform – may be dead, but that does not mean it can’t reemerge as a zombie every now and then. That’s precisely what happened moments ago when Paul Ryan just announced that after months of speculation whether border adjustment tax will or won’t be implemented to help offset Trump’s proposed tax cuts, it is now officially dead.
    RYAN IS SAID TO BE TELLING REPUBLICANS BORDER TAX IS DEAD: BBG As Reuters adds:
    “BIG SIX” REPUBLICANS IN CONGRESS, TRUMP ADMINISTRATION ANNOUNCE BORDER TAX PROVISION HAS BEEN SET ASIDE IN ORDER TO ADVANCE TAX OVERHAUL A statement Thursday from the so-called Big Six – Ryan, Brady, White House economic adviser Gary Cohn, Treasury Secretary Steven Mnuchin, Senate Majority Leader Mitch McConnell and Senate Finance Committee Chairman Orrin Hatch – said due to the unknowns associated with the border-adjusted tax, the group ‘had decided to set this policy aside in order to advance tax reform.”

    This post was published at Zero Hedge on Jul 27, 2017.


  • Graham Dares Trump: “Holy Hell To Pay if You Fire Sessions”

    Threat, promise, or red flag to a bull?
    After a few days of non-stop tirades against current Attorney-General Jeff Sessions by President Trump, increasing numbers of Republicans are coming out in support of the “beleauered” AG urging Trump to stop.
    As Bloomberg reports, a number of Republicans have called White House officials – and even Trump personally – to warn against removing Sessions, according to a Senate GOP aide who asked not to be identified discussing the private conversations. Their message has been that Sessions is universally liked on Capitol Hill and that removing him would be one of Trump’s biggest mistakes as president.
    But, just in case the message from senior Republicans was not getting to the President, Republican Senator Lindsey Graham of South Carolina told CNN on Thursday morning…

    This post was published at Zero Hedge on Jul 27, 2017.


  • Stocks and Precious Metals Charts – Building a Dream

    “Seek the Lord, all you humble of the land,
    who have observed his law;
    Seek justice, seek humility;
    And perhaps you will be sheltered
    on the day of the Lord’s justice.
    This was the triumphal city, high and mighty,
    Saying to herself, ‘I am the one, and none dare stand beside me.’
    How desolate now has she become, a place fit only for wild beasts.
    Those who pass by her scoff, and shake their heads at her ruin.”
    Zephaniah 2:3,15
    I have a feeling that we are going to be seeing some real fireworks in the precious metals before the end of the year.
    But feelings really do not count in markets. But it is there, tempting my trading discipline. I know that you have never experienced that. lol.
    Stocks bobbled a bit today. I also think we will be seeing a slide in stocks. But let’s see how the earnings come out, and what the Fed does about their bloated balance sheet.
    While I am not so sure yet about where gold and silver and stocks are going, here are three things that I am pretty sure about.
    1. There is no sustainable recovery. Basic items like housing and healthcare are fast outstripping the growth in real wages.

    This post was published at Jesses Crossroads Cafe on 27 JULY 2017.


  • Scaramucci: “Priebus Is A F**king Paranoid Schizophrenic”, Slams “Cocksucker” Bannon, Wants To “Kill” Leakers

    Update: After what was either (i) his first White House nervous breakdown or (ii) a carefully disguised distraction intended to give the media something other than Russia to discuss on this weekend’s political talk show circuit, Anthony Scaramucci has just issued the following statement via Twitter:
    I sometimes use colorful language. I will refrain in this arena but not give up the passionate fight for @realDonaldTrump's agenda. #MAGA
    — Anthony Scaramucci (@Scaramucci) July 27, 2017

    This post was published at Zero Hedge on Jul 27, 2017.


  • Markets Relax Merrily on a Powerful Time Bomb

    Magnitude unknown but huge. Brokerages push it to new heights.
    Stock and bond market leverage is everywhere. Some of it is transparent, such as NYSE margin debt which was $539 billion as of the June report. But the hottest form of stock and bond market leverage is opaque, offered by financial firms that usually don’t disclose the totals: securities-based loans (SBLs) – or ‘shadow margin’ because no one knows how much of it there is. But it’s a lot. And it’s booming.
    These loans can be used for anything – pay for tuition, fix up that kitchen, or fund a vacation. The money is spent, the loan remains. When security prices fall, the problems begin.
    Finra, the regulator for brokerages, doesn’t track this shadow margin, nor does the SEC. Both, however, have been warning about the risks. No one knows the overall amount of this shadow margin, but some details have been reported:
    Morgan Stanley had $36 billion of these loans on its balance sheet as of the end of 2016, up 26% from 2016, and more than twice the amount in 2013. Bank of America Merrill Lynch had $40 billion in SBLs on the balance sheet at the end of 2016, up 140% from 2010;

    This post was published at Wolf Street on Jul 27, 2017.


  • Gold Market Morning: July-27-2017: rising despite heavy U.S. gold ETF sales!

    Gold Today – New York closed the day before yesterday at $1,248.40. London opened at $1,262.00 today.
    Overall the dollar was weaker against global currencies, early today. Before London’s opening:
    – The $: was weaker at $1.1728 after the day before yesterday’s $1.1654: 1.
    – The Dollar index was weaker at 93.50 after the day before yesterday’s 93.97.
    – The Yen was unchanged at 111.25 after the day before yesterday’s 111.25:$1.
    – The Yuan was stronger at 6.7377 after the day before yesterday’s 6.7506: $1.
    – The Pound Sterling was stronger at $1.3138 after the day before yesterday’s $1.3031: 1.
    Yuan Gold Fix
    The reaction to the Fed’s inaction not just on rates but on the timing of the contraction of the Fed’s Balance Sheet, interrupted the gold price relationship between global markets. New York closed at the same level as Shanghai yesterday, but London opened at just $2.50 below Shanghai’s trading level this morning. The price differentials between the global markets were nearly eliminated on the back of the Fed’s inaction. We look today to see just how global markets interact and to see if they are really narrowing their differences.
    If you had been following our commentary in the Gold Forecaster newsletter on China and the shift of pricing power to the east, you would not have been tempted to sell your holdings of gold or silver!

    This post was published at GoldSeek on 27 July 2017.


  • Gold Price Jumps in Dollars as ‘Low-Rate Yellen’ Gets Trump’s Backing

    Gold price gains continued for Dollar investors on Thursday but held flat for other traders as the US currency touched its lowest Euro value since January 2015 following yesterday’s “no change” decision from the Federal Reserve.
    “The actual path of the federal funds rate will depend on the economic outlook as informed by incoming data,” said the Fed’s July statement, seemingly delaying a move to start reducingits $4.6 trillion holdings of QE-bought Treasury and mortgage-backed bonds.
    Asian stock markets rose – as did most commodities and major government bond prices – but European equities then slipped as the Dollar bounced from its new 30-month lows versus the 19-nation single currency.
    Gold priced in Dollars today set its highest London benchmarking since 14 June at $1262 per ounce.
    But priced in Euros, gold fixed at only a 3-session high. The UK gold price in Pounds per ounce reached only a 2-session high.
    Thursday morning’s Dollar price stood 2.0% above the 2017 average to date.

    This post was published at FinancialSense on 07/27/2017.


  • Krona Sinks After Swedish PM Refuses To Resign, Reshuffles Cabinet Over “Disastrous Leak”

    A brief (ECB/Fed-driven) sigh of relief yesterday in the Krona has ended as Sweden’s embattled PM has refused to resignover the government’s “disastrous leak” of the nation’s citizens’ information. Lofven has instead chosen to reshuffle his cabinet, ading “I don’t want political chaos in Sweden, that’s not what we need right now, I will take responsibility and ensure we don’t get a political crisis.”
    However, as Bloomberg reports, opposition members were already signaling they weren’t satisfied with the steps taken, and Lofven’s government remains far from secure.
    The prime minister said Home Affairs Minister Anders Ygeman and Infrastructure Minister Anna Johansson will leave the Cabinet, as parties representing a majority in parliament prepared no-confidence motions against them.
    Defense Minister Peter Hultqvist will stay, Lofven told reporters in Stockholm on Thursday, arguing the specific motion against him was ‘not serious.’
    The announcement follows speculation the prime minister would himself be forced to resign, or call an early election, in response to the deepening scandal. With the reshuffle, Lofven is buying himself time to negotiate with parliament.

    This post was published at Zero Hedge on Jul 27, 2017.


  • Scaramucci Implicates Priebus In Now-Deleted Tweet Following ‘Felony’ Leak Of Financial Disclosures

    White House Communications Director Anthony Scaramucci set of a firestorm of speculation last night with a now deleted tweet following a Politico article containing information he claimed was leaked – revealing his net worth at $85 million.
    ***
    Scaramucci stated that he “will be contacting @FBI and the @TheJusticeDept #swamp @Reince45,” oddly tagging White House Chief of Staff Reince Priebus.

    This post was published at Zero Hedge on Jul 27, 2017.


  • The Globalist One World Currency Will Look A Lot Like Bitcoin

    This week the International Monetary Fund shocked some economic analysts with an announcement that America was “no longer first in the world” as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U. S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America’s economy in my article ‘The New World Order Will Begin With Germany And China’.
    I find it interesting that the IMF is once again taking the lead on perpetuating the image of a failing U. S., just as they often push for the concept of a single global currency system to replace the dollar as the world reserve. The most common faulty counter-argument I run into when outlining the globalist agenda to supplant the dollar with the Special Drawing Rights basket system is that “the IMF is a U. S. government controlled organization that would never undermine U. S. authority.” Obviously, the people who make this argument have been thoroughly duped.
    The IMF is constantly and actively undermining America’s economic position, because the IMF is NOT an American controlled organization; its loyalty is to globalism as an ideology as well as the international financiers that dominate central banking. America’s supposed “veto power” within the IMF is incidental and meaningless – it has not stopped the IMF from chasing the replacement of the the dollar structure and forming the fiscal ties that stand as the root of what they sometimes call the “global economic reset.”

    This post was published at Alt-Market on Thursday, 27 July 2017.


  • Turkey gold imports still riding very high — Lawrie Williams

    By our reckoning, Turkey has imported some 174 tonnes of gold in the first half of the current year. This reflects a degree of political turmoil both before and after the April referendum, which gave President Erdogan sweeping additional powers, but also Erdogan’s advice late last year that citizens should buy gold or Turkish lira rather than dollars in converting foreign currency or as a hedge against future uncertainties. It looks as though his advice has been well heeded as far as gold is concerned.
    This year’s imports to date have already exceeded the 106 tonnes imported in full year 2016, which in turn was more than double the amount imported in 2015. Thus this year’s figures represent an enormous increase on prior years’ figures and probably puts Turkey currently in place as the world’s third largest net importer of gold, after China and India.
    With Chinese gold demand remaining reasonably strong and Indian demand hugely up in the first half of the year ahead of the new GST imposition, gold flows from the West to the Middle East and South and East Asia have been very strong in the first half of the year and have probably accounted for just about all of the world’s new mined gold, which puts physical metal in short supply in the west.

    This post was published at Sharps Pixley


  • This Miner’s $190 Billion Tax Bill Would Take Centuries to Pay

    Tanzania sent Acacia Mining Plc a tax bill equal to almost two centuries worth of the gold producer’s revenue.
    The government issued the company, which mines all of its gold in the African country, with a $40 billion tax bill and another $150 billion in interest and penalties, Acacia said in a statement Monday. The charge covers alleged under-declared export revenues from the Bulyanhulu and Buzwagi mines over periods between 2000 and 2017.
    Acacia reiterated that it has fully declared all revenues. The stock sank as much as 17 percent on Tuesday to the lowest since December 2013. In just three days, the company has lost 42 percent of its value.
    The giant tax bill is the latest twist in an increasingly ugly spat between the government and Acacia. In March, Tanzania banned exports of unprocessed gold and copper, a move Acacia said is costing it about $1 million a day in lost revenue. The situation escalated when the government accused the firm of operating illegally in the country and said mine operators had been evading taxes.
    ‘The company is considering all of its options and rights and will provide a further update in due course,’ Acacia said in the statement.

    This post was published at bloomberg


  • DEMS PUSH FOR $15 MINIMUM WAGE WHILE PAYING THEIR OWN STAFF WAY LESS

    The Democratic Party is pushing for a federal $15 minimum wage as part of its recently revealed ‘Better Deal’ economic platform, despite paying its own field organizers significantly less than that during the 2016 election cycle.
    The new platform, announced Monday at a press conference in Berryville, Va., aims to ingratiate the Democratic Party with blue collar voters through populist economic messaging focused on prioritizing the interests of workers over those of corporate interests.
    However, the same party pushing the dubious $15 minimum wage chose not to implement the policy itself during the 2016 election.
    A group of roughly 40 field workers filed a class action lawsuit against the Democratic National Committee (DNC) and six state party organizations in May, alleging that they were not fairly compensated for their work during the 2016 campaign. The field organizers claim to have been paid $3,000 per month while consistently working 80 to 90 hours per week.
    Justin Swidler, the attorney representing the workers, described their treatment as ‘obscene.’

    This post was published at The Daily Sheeple on JULY 26, 2017.


  • Foxconn To Get $230,000 In Incentives For Every Wisconsin Job Created

    To much fanfare, President Donald Trump on Wednesday announced that Taiwanese electronics giant Foxconn, best known for making the iPhone, will build a new plant producing LCD panels in Wisconsin that will bring thousands of jobs to the state. On the surface it’s a great deal: in what’s being called the largest economic development project in state history, Foxconn plans to build a $10 billion plant that will eventually employ as many as 13,000 people, according to the White House and Gov. Scott Walker.
    “It starts today with this investment in Wisconsin,” Foxconn chairman Terry Gou said at announcement in Washington D. C. on Wednesday.
    The plant is expected to open in 2020 and be on a 20 million square-foot campus on at least 1,000 acres, a campus Walker’s office has dubbed “Wisconn Valley” according to the Wisconsin State Journal. The plant could be the first of several facilities the company intends to build in the United States and will start with 3,000 employees, a staff that could eventually grow by 10,000.
    Furthermore, Walker’s office projected the project would create at least 22,000 “indirect and induced jobs” throughout Wisconsin and will generate an estimated $181 million in state and local tax revenues annually, including $60 million in local property taxes.

    This post was published at Zero Hedge on Jul 26, 2017.


  • Total Government And Personal Debt In The U.S. Has Hit 41 Trillion Dollars ($329,961.34 Per Household)

    We are living in the greatest debt bubble in the history of the world. In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars. That means that it has increased by almost 14 times since Ronald Reagan was first elected president. I am searching for words to describe how completely and utterly insane this is, but I am coming up empty. We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening.
    According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980. That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time.
    Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark. When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income.
    If anyone can make a good argument that we are not in very serious debt trouble, I would love to hear it.
    And remember, the figures above don’t even include corporate debt. They only include government debt on the federal, state and local levels, and all forms of personal debt.
    So do you have $329,961.34 ready to pay your share of the debt that we have accumulated?

    This post was published at The Economic Collapse Blog on July 26th, 2017.


  • Why Illinois Is In Trouble – 63,000 Public Employees With $100,000+ Salaries Cost Taxpayers $10 Billion

    The ‘Big Dogs’ of local government in Illinois.
    Illinois is broke and continues to flirt with junk bond status. But the state’s financial woes aren’t stopping 63,000 government employees from bringing home six-figure salaries and higher.
    Whenever we open the books, Illinois is consistently one of the worst offenders. Recently, we found auto pound supervisors in Chicago making $144,453; nurses at state corrections earning up to $254,781; junior college presidents making $465,420; university doctors earning $1.6 million; and 84 small-town ‘managers’ out-earning every U. S. governor.

    This post was published at Zero Hedge on Jul 26, 2017.


  • JULY 26/DOVISH FED WITH ‘LACK OF INFLATION’ SENDS GOLD AND SILVER SOARING AFTER COMEX CLOSES/NORTH KOREA WILL LAUNCH ANOTHER ICBM MAYBE BY TONIGHT/USA PASSES LEGISLATION ORCHESTRATING MORE SANCTI…

    GOLD: $1249.85 DOWN $2.55
    Silver: $16.46 DOWN 9 cent(s)
    Closing access prices:
    Gold $1260.75
    silver: $16.67
    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: $1254.41 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1248.40
    PREMIUM FIRST FIX: $6.01
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1252.10
    NY GOLD PRICE AT THE EXACT SAME TIME: $1245.65
    Premium of Shanghai 2nd fix/NY:$6.45
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1245.40
    NY PRICING AT THE EXACT SAME TIME: $1246.50 ???
    LONDON SECOND GOLD FIX 10 AM: $1248.10
    NY PRICING AT THE EXACT SAME TIME. $1248.15
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 14 NOTICE(S) FOR 1400 OZ.
    TOTAL NOTICES SO FAR: 171 FOR 17100 OZ (.5318 TONNES)
    For silver:
    JULY
    21 NOTICES FILED TODAY FOR
    105,000 OZ/
    Total number of notices filed so far this month: 3170 for 15,850,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    WE HAVE NOW ENTERED OPTIONS EXPIRY WEEK:
    COMEX OPTIONS EXPIRY: TONIGHT JULY 26.2017
    LONDON BASED OPTIONS EXPIRY: JULY 31.2017 AT 11AM OR SO.
    (OTC/LBMA CONTRACTS)

    This post was published at Harvey Organ Blog on July 26, 2017.