US Bonds, Stocks Tumble As Dollar Surges On EUR, JPY, GBP Weakness

US equity markets are volatile this morning but appear to have now entirely decoupled from USDJPY as it careens headlong to new 5-year highs running stops to 106.00. US Treasury yields are tracking the collapse of JPY closely since the US open. EURUSD is also plunging (as did GBP this morning). Abe will be happy as JPY collapses so Nikkei futures surge… is this ‘great rotation’ from every asset in the world into the Alibaba IPO?
The USD is surging…

This post was published at Zero Hedge on 09/08/2014.

Japanese Economy Contracts Bigger than Expected 7.1% in 2nd Quarter; Really Bad Theories

By now it should be pretty clear that Abenomics is a complete failure. Abenomics did not spur lending, investment, hiring, or wage growth.
It’s one touted “success” is that prices have gone up. And for cash-strapped consumers facing higher taxes, that alleged “success” is actually a disaster.
Japanese Economy Contracts Bigger Than Expected 7.1% in Second Quarter
Please consider Japan says economy contracted 7.1 percent in April-June on bigger drop in business investment.
Japan’s economy contracted at a larger than earlier estimated annual rate of 7.1 percent in April-June, as companies and households slashed spending following a tax hike. The revised data released Monday show business investment fell more than twice as much as estimated before, or 5.1 percent, while private residential spending sank 10.4 percent, in annual terms. The earlier estimate showed the economy contracting 6.8 percent. The recovery of the world’s third-largest economy has slowed following the increase in the sales tax to 8 percent from 5 percent on April 1.

This post was published at Global Economic Analysis on September 08, 2014.

Use ‘Power Gaps’ to Build Your Own Empire

Whoa. We struck gold Friday…
Only minutes after we hit ‘send’ on Friday’s issue, the first reader response popped up in our mailbox.
A few minutes later, another. And then another…
An hour went by and we were up to our elbows in your emails. We haven’t seen anything like it.
We hear you loud and clear:
You want to publish that book, create that product, or launch that special project, but need ultra-strategic, PROVEN processes to skyrocket you ahead of the competition.
That’s where we can help.
We’re working on something very special for you behind the curtain. We’ll be leaking it out in these episodes, so stay tuned.
On Friday, we spoke briefly about a ‘hidden’ economy where you can test your product (and even sell it) for free…
In this ‘new economy,’ you can even sell your product or business idea before you create it.
Counterintuitive, right?
What we’re used to doing is spending tens (or hundreds) of thousands of dollars on creating a product and then… well… praying to the heavens.
Much of the time, unfortunately, our prayers fall flat. We end up with storage spaces full of unsold product…and ears full of the typical mantra from ‘mean-well’ family members…
…’I told you so.’
But that’s not the name of the game anymore. What you’re about to discover is a revolution in business and product creation.
It’s the beginning of what’s called the Economy 2.0. Which simply means supply and demand will soon start to match up in ways you might not even believe is possible.
Meaning, the future lacks mass-produced crap (yay!).
Which, in turn, means we’re at the beginning of more wealth…less waste…and more fun.
Learn this simple strategy now, and you’ll be light-years ahead of industry mammoths.
Before we get into that, though, let’s build some context. Let’s dive into why this revolution is happening right now…
What we’ve uncovered may surprise you.

This post was published at Laissez Faire on SEP 8, 2014.

How The Fed “Mysteriously” Eliminated $7 Trillion In US Debt

Anyone looking at the Federal Reserve’s own data set, that provided with the generous “free” funding of the US taxpayer by way of the St. Louis Fed’s FRED database, will notice something quite welcome, if magical: total US debt held by the public – that which is not part of intragovernment holdings, read Social Security – has mysteriously collapsed from $12 trillion to $5 trillion. Somehow, with nobody looking, the Fed managed to reduce US total debt by $7 trillion.

This post was published at Zero Hedge on 09/08/2014.

Contagion – What the Next Wall Street Crisis Will Look Like

Last week the Fed announced a plan for the next financial crisis that feels to some observers like a plan to burn down the trading houses on Wall Street – or, alternately, guarantee another massive taxpayer bailout of the biggest banks.
The Federal Reserve Board and its regional banks are overflowing with economists. What the Fed does not seem to have is an honest, informed voice to consult about how trading markets think in a severe financial crisis.
Last Tuesday, the Federal Reserve Board along with other bank regulators announced a new liquidity rule for the largest Wall Street banks – the ones that required the massive bailout in the 2008 to 2010 financial crisis. The goal of the new rule, according to the Fed, would be to force the biggest, most complex banks to hold enough ‘high quality liquid assets’ (HQLA) so that they could be easily liquidated if there was a run on the bank, eliminating the need for another taxpayer bailout. So far, so good.
Then the Fed and its fellow regulators did something that raises serious doubts about their market sophistication. They announced that in addition to U. S. Treasury securities, where a flight to safety always flows in a crisis, the big banks could also hold corporate bonds and corporate common stocks in the Russell 1000 index among their newly defined ‘high quality liquid assets’ earmarked for an emergency.
Just six weeks before the Fed anointed non-exchange traded corporate bonds as liquid assets, all the way down to investment grade, the Financial Times ran this opening paragraph in an article by Tracy Alloway:
‘The ease with which investors can trade corporate debt has declined sharply in the five years since the financial crisis according to research that is likely to feed fears over the prospect of an intensified sell-off in the $9.9 trillion US market.’

This post was published at Wall Street On Parade By Pam Martens and Russ Marte.

The Pursuit Of Money Over Personal Satisfaction

This article was written by Tom Chatham and originally published at Project Chesapeake
Have you ever asked a person why they work? If you have the answer will likely end with a statement that they need to pay for stuff. It’s a truism in the world we live in that you must pay for many of the things we need. Its this need to pay for more and more stuff that leads to the need for higher paying jobs.
This perceived need leads many to seek jobs they do not necessarily like but need to achieve this end result. The race for the almighty buck has many unintended consequences. It has been said that if you do not like your work, you will not like anything else about your life.
The pursuit of money leaves many people with a hollow void that is never filled and causes them to lash out at society in their discomfort. This is seen in the many cases of domestic abuse, road rage and general lack of politeness in society. In many cases the more the person makes, the more likely you are to see these traits.

This post was published at Alt-Market on 08 September 2014.

Nixon’s Vindication

Forty years ago many Americans celebrated the demise of the imperial presidency with the resignation of Richard Nixon. Today it is clear they celebrated too soon. Nixon’s view of presidential powers, summed up in his infamous statement that, ‘when the president does it that means it is not illegal,’ is embraced by the majority of the political class. In fact, the last two presidents have abused their power in ways that would have made Nixon blush. For example, Nixon’s abuse of the Internal Revenue Service to persecute his political opponents was the subject of one of the articles of impeachment passed by the US House of Representatives. As bad as Nixon’s abuse of the IRS was, he was hardly the first president to use the IRS this way, and the present administration seems to be continuing this tradition. The targeting of Tea Party groups has received the most attention, but it is not the only instance of the IRS harassing President Barack Obama’s political opponents. For example, the IRS has demanded that one of my organizations, Campaign for Liberty, hand over information regarding its major donors.
Nixon’s abuse of federal power to spy on his ‘enemies’ was abhorrent, but Nixon’s abuses of civil liberties pale in comparison to those of his successors. Today literally anyone in the world can be spied on, indefinitely detained, or placed on a presidential ‘kill list’ based on nothing more than a presidential order. For all his faults, Nixon never tried to claim the power to unilaterally order anyone in the world detained or killed.

This post was published at Ron Paul Institute on September 7, 2014.

The Wrath of Abenomics Crushes Japanese Consumers, Eviscerates Economy

In April, after the broad-based consumption-tax hike from 5% to 8% had taken effect, retail sales collapsed 20% from March. Total vehicle sales collapsed 56% to the worst level since December 2012, and December is usually the worst month of the year in Japan. April was terrible. It was much worse than feared by the Abenomics soothsayers and apologists.
But the shock didn’t last long, and soon the soothsayers and apologists were at it again. In May, car sales were worse than a year earlier, but not much worse (-1.2%); and in June, car sales were actually a smidgen better ( 0.4%) than a year earlier, and hopes were being propagated that this would all somehow work out. But in July sales dropped 2.5% year over year, and other data points were going to heck as well.
Then August happened.

This post was published at Wolf Street on September 8, 2014.

Perth Mint silver sales hit a high

The Perth Mint’s sales of silver coins hit a seven-month high in August as the metal’s sharpest price drop in five months attracted buyers, while gold sales also rose. The Perth Mint runs the only gold refinery in Australia, the world’s second-biggest gold producer after China. Silver coin sales totalled 818,856 ounces last month, compared with 691,258.63 ounces in the same period last year, data available on the mint’s website showed. The monthly sales were the highest since January as silver prices fell nearly 5 percent in August – the biggest monthly drop since March.

This post was published at TruthinGold on September 8, 2014.

Deutsche’s David Bianco “Forecasts” The S&P (In One Simple Chart)

While not exactly a “bear”, Deutsche Bank’s David Bianco – until this weekend – had the lowest S&P 500 target for 2014 year-end at 1,850. That’s all changed now…
Laszlo Birinyi would be proud…

Via Deutsche Bank,
We raise 2015 yearend S&P 500 fair value target 7.5% to 2150 from 2000
We still expect a long lasting economic expansion of moderate growth, which should rival the US record of 10 years with S&P EPS growth averaging 6% until the next recession, on 5% sales growth, flat margins, 1% share shrink. Despite entering the latter years of a typical expansion and high margins vs. history, we now think the trailing S&P PE should average 17 vs. 16 until elevated recession risk returns. This is because we now expect long-term real interest rates to stay below normal through 2016 and thus lower our S&P 500 real cost of equity estimate from 6.0% to 5.5%. We raise 2014 and 2015 yearend S&P targets to 2050 and 2150 from 1850 and 2000 and introduce 2300 for 2016 yearend.

This post was published at Zero Hedge on 09/08/2014.

8/9/2014: Some Pretty Good Services Data from Ireland

Irish services sectors have been at the forefront of the latest recovery for over two years now, posting booming figures and rosy PMIs. Underlying trends, however, are less often voiced. So let’s take a look at the latest data here:
Overall, by value indices, Irish Services sectors posted a reading of 113.2 in July 2014, which is 1.34% up m/m. In previous month, June, m/m rate of increase was 1.45% which suggests slower growth in the sector overall. However, taking longer-range reading provides for a more encouraging picture. 3mo average through April 2014 was up 2.23% compared to same period 2013 and this rose in the 3mo period through July 2014 to 3.20%. 6mo average through July 2014 is also robustly up: 2.72% y/y.
So the above are encouraging trends and visible in the following chart:

This post was published at True Economics on September 8, 2014.

Guest Post: “The MOAMOPE”, by James McShirley

In this tremendous article, James McShirley exposes a small but extremely significant portion of the ongoing metals price manipulation scheme. It is reprinted here with the expressed permission of Bill Murphy at This article was originally published back in late August and it’s likely that some of you have already seen it. Regardless, the information and data provided by Mr. McShirley is so compelling that I wanted to bring it back to the forefront today. Please read this (again) and then forward it to any “ostriches” on your email list.
by, James C. McShirley
The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%. Algo sentinels now stand in a permanent state of vigilance, keeping MOPE alive. (MOPE is what Jim Sinclair refers to as “management of perspective economics”.) Market manipulations and control of gold trading are what I have documented now for over 15 years. Many of these manipulations are well-worn, tried and true. Nearly all have intensified over the past 3 years. It seems as if one could throw a dart on a trading dartboard and hit an anomalous trading pattern nearly every time. Even with that said, I was stunned to stumble on to the biggest trading anomaly of all: the MOAMOPE – the mother of all management of perspective economics.

This post was published at TF Metals Report on September 8, 2014.

Bob Janjuah’s Most Watched Market Catalyst: VIX Under 10

From Bob Janjuah of Nomura
Just Mild Indigestion Then…
Now that we are close to the end of Q3, and now that we have seen two consecutive weekly closes in the S&P500 index over 2000, it is time for an update. As per my last note risk-on did indeed play out over late Q2 and most of Q3, and the S&P500 hit the 1950/2000 zone I was targeting. We also saw a short period of counter-trend weakness in risk assets from about mid-July through to mid-August – this was the ‘belly-ache’ I referred to in my previous note. Of course, the belly-ache was more like mild indigestion as the risk sell-off was at the shallower end of expectations – the Dax sold off well over 10% from peak-to-trough during July/August. A material move but well inside the worst case expectation of an ‘up to 20%’ correction. And, as I also expected, the response from policymakers to this deflationary weakness was predictable – promises of looser monetary policy for longer, with the ECB leading the way in delivery. Since mid-August, when policymakers used Jackson Hole to give us their newest reason for keeping monetary policy looser for longer (wage inflation), markets have begun the late Q3/Q4 risk-on rally that I also wrote about.
What now? Well, with the consecutive weekly S&P 500 closes above 2000 my outlook for markets is as follows:

This post was published at Zero Hedge on 09/08/2014.

The Wrath of Abenomics Crushes Japanese Consumers, Slams Economy

In April, after the broad-based consumption-tax hike from 5% to 8% had taken effect, retail sales collapsed 20% from March. Total vehicle sales collapsed 56% to the worst level since December 2012, and December is usually the worst month of the year in Japan. April was terrible. It was much worse than feared by the Abenomics soothsayers and apologists.
But the shock didn’t last long, and soon the soothsayers and apologists were at it again. In May, car sales were worse than a year earlier, but not much worse (-1.2%); and in June, car sales were actually a smidgen better ( 0.4%) than a year earlier, and hopes were being propagated that this would all somehow work out. But in July sales dropped 2.5% year over year, and other data points were going to heck as well.
Then August happened.
In August, vehicle sales as measured by registrations swooned, according to the Japan Automobile Manufacturers Association. All categories were down: sales of new cars, including minis (cars with tiny 500cc engines) plunged 9.4% year over year to 281,326 units; sales of new trucks of all sizes, including minis dropped 7.2% to 51,165 units. And total vehicles sales, retail and commercial, cars, trucks, and buses plunged 9% to 333,471 units.

This post was published at Wolf Street by Wolf Richter ‘ September 8, 2014.

Stuck Inside of the CME with the COMEX Blues Again

Sep 07, 2014
Precious metals prices remain range-bound over the short-term after a devastating three year run.
From a technical standpoint, it doesn’t look great; we are stuck in this limbo of tightly controlled price limbo while the world continues to melt apart for the 99.9%.
COMEX positioning for the big banks and speculators has not changed that much over the last few months.
JPM’s short remains at around 50 days of world production.
In fact, these spec longs who have been hanging in throughout may be the reason we’ve remained range bound over the last couple of options expirations – like the one this week.
Prices are not going to move up from here until the paper pushers who control prices via the exchanges find a way to profit from it.
Regulatory capture happened long, long ago.
The Painted Tape
Now we even know that central banks intervene directly. Yes, most people get it. Everything is manipulated. But the precious metals are manipulated more so.
And the blind spot for most is that these metals still hold monetary status. Let them trade freely, and you will see what I mean immediately.

This post was published at Silver-Coin-Investor on Dr. Jeffrey Lewis /.

Parallels Between The End of Bimetallism and Innovative Bond Market Debt Settlement Products

In the 1800s silver was the predominant money. Several silver discoveries occurred and miners began bringing more silver to the market, making silver somewhat more commonplace. “New” silver was in the possession of parties not of the establishment, that is to say miners rather than bankers or politicians.
At that time, both silver and gold were defacto world currency, and a certain weight of silver was the same as a smaller weight of gold. Therefore silver was convertible to gold, and both were convertible to dollars.
Soon after, the banks in the US and elsewhere, instigated by a London connection, lobbied for silver to be retired as official form of money. The required laws were passed in the US and UK. This caused a situation to arise whereby people who had borrowed from the banks were required to repay in gold. But their savings were in silver, and silver could no longer be used to pay off debts to the bankers. This hit particularly in far eastern countries, and in the lower to middle classes. The demand for gold pushed it’s price upwards, and the silver sold to get gold dropped the value of silver. The bankers did very well from the demonetization of silver.
Since that time, and during most of the 20th century, the US dollar became the defacto world currency of choice. At first the dollar was convertible to gold. Dollars became more numerous and gold remained as scarce as ever. But this came to a head and during the 1930s the link between dollars and gold broke and gold rose in price and the dollar fell, in a sudden re-marking of valuations. Citizens of the US were ordered to sell their gold prior to the rise in the price of gold.
Sovereign countries could still own gold and demand repayment for dollars in gold. New dollarswere brought to the market by the US and the dollar became available to a greater degree during this period. Subsequently during the late 1960s there was another currency adjustment and this ability of countries to present dollars and be repaid in gold came to an end.

This post was published at TF Metals Report on September 7, 2014.

There Goes The “Housing Recovery”: Record Few Americans Think “Now Is A Good Time To Buy A Home”

When one thinks “recovery”, some of the images envisioned include a healthy labor market (not one saturated by part-time, low wage jobs), rising earnings (not wages that have stagnated for years and in real terms are at Lehman levels) and a vibrant housing market in which new home buyers enter with confidence, and where mortgage loans are abundant and available to qualified creditors. One certainly does not imagine a housing “market” dominated by Chinese, Russian and Arab monely-laundering oligarchs, where half of all transactions are “all cash”, and where, as Fannie Mae just reported, the number of Americans who said “now is a good time to buy a home” plunging to 64% – the lowest print in survey history!
But then again, aside from the handful of Americans the bulk of whose net worth is in financial assets, accessible right here and right now (and the balance who are deluded that their equity-invested retirement assets will be worth something in real terms in 20, or even 10 years), nobody really pretends any more there is a recovery.
As for the housing market: stick a fork in it.

This post was published at Zero Hedge on 09/08/2014.

Gold & Silver Trading Alert: Miners Break Down as U.S. Dollar Soars

Briefly: In our opinion no speculative positions in gold, silver and mining stocks are now justified from the risk/reward perspective. However, day-traders might consider a small speculative long position in silver.
Even though gold didn’t react strongly to Mario Draghi’s comments, a lot happened in the precious metals market yesterday. We finally saw a breakdown in mining stocks and we saw an extreme daily rally in the USD Index. As you know, the USD Index very often triggers significant moves in gold. Even though the last 2 days didn’t bring any changes, the situation has just become very tense for the precious metals investors and traders. What are the implications for your precious metals investments and trades?
Let’s examine the charts and find out (charts courtesy of As you know, the USD Index is right at the cyclical turning point (or slightly behind it, which doesn’t change anything), so it’s likely to change its direction. Since it moved above the Sep. 2013 high in a very sharp manner, you might be wondering if there was something important that stopped the rally yesterday and that could prevent further gains for at least a while.

This post was published at GoldSeek on 7 September 2014.

Gold And Silver Ready To Go BOOM

The wait for the next leg up in both gold and silver has been excruciating. Many bulls are losing hope and the number of bears appears to be increasing. As for me, I remain rock solid. I hold long silver positions and I must say I am not worried one iota. Of course I could be wrong. I seriously doubt it though. Let’s see why.
There are really only a couple of things I wanted to show in this analysis. We will use the weekly chart for gold and the daily chart for silver. Let’s begin with gold.
We can see the triangle formation as made by the two black trend lines I have drawn. This structure is on the charts of most, if not all, technical analysts. And so it should be. But it is very obvious. And when something becomes too obvious, I put on my contrarian hat.
From previous analysis, readers will be well aware that I am looking for a rally that busts the upper trend line in a fake out move. I expect the break to only be temporary before it reverses back down to continue the down trend.
Also, in previous analysis, I stated I thought the lower trend line would hold this current pullback. Last week it broke through and in doing so provided further clarity. That is, I believe this is the start of a double fake out. This current break of the lower trend line is the minor fake out while the bust of the upper trend line will be the major fake out.

This post was published at Gold-Eagle on September 8, 2014.