Russia & China Looking To Conduct Half Of Their Trade In Yuans And Roubles – Episode 463

The following video was published by X22Report on Sep 9, 2014
McDonald’s sales have been declining since December 2013. World bank warns we are in a global job crisis. Scotland could ask for its share of gold from the UK. Russia and China are pushing the de-dollarization by conducting half of their trade in the yuan or rouble. MH17 report is out and it says the plane was hit with high energy projectiles, bullets. Who did it is not in the report. Wiki-leaks reports that the Ukraine crisis was scripted back in 2008. French are making the case to invade Libya. The US is getting 40 plus countries together to form a coalition to invade Syria. The Islamic State terror threat is being pushed for the next event. This will be an inside job and will cover up the economic collapse.

A Historic First: Bank Of Japan Monetizes Debt At Negative Rates

First, Europe infamously shifted to a NIRP and now Japan has begun NIRP monetization. As WSJ reports, Tuesday marked another milestone in the topsy-turvy world of monetary easing in Japan: The Bank of Japan bought short-term Japanese government debt at a negative yield for the first time. In the understatement of the decade, one Japanese bank strategist noted, “The BOJ probably didn’t expect this would happen, and T-bill rates staying negative should be a cause of concern for them.” The BoJ’s decision to scoop up these negative-yielding bills appears to confirm they will meet the QQE-buying demands no matter what the cost (to the Japanese people). The bottom line, the Bank of Japan is now implicitly issuing debt to the Japanese Treasury.

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

Jeff Gundlach Live Webcast: “The Fixed Income Playbook”

In a few moments, the up and coming “bond king challenger”, Jeffrey Gundlach will hold one of his signature free to all webcasts, this time focusing on what Gundlach calls the “Fixed Income Playbook.” Will he agree with David Tepper that the bond bubble is now bursting, or, on the contrary, side with JPM and its estimation that there is $5 trillion in excess liquidity which will inevitably find its way into the bond market and send yields to even lower record lows, find out in minutes.

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

The 7 Deadly Sins Of Investing

I have often written about the emotional and psychological factors that inhibit long-term investment performance (most recently here). Despite repeated studies that suggest investors should just buy “passive index” funds and “hold on” until eternity, the reality is that it simply does not work that way.
If you were raised in a religious household, or were sent to a Catholic school, you have heard of the seven deadly sins. These transgressions — wrath, greed, sloth, pride, lust, envy and gluttony — are human tendencies that, if not overcome, can lead to other sins and a path straight to the netherworld.
In the investing world, these same seven deadly sins apply. These “behaviors,” just like in life, lead to poor investing outcomes. Therefore, to be a better investor, we must recognize these “moral transgressions” and learn how to overcome them.
The 7-Deadly Investing Sins
Wrath – never get angry; just fix the problem and move on.
Individuals tend to believe that investments that they, or their advisor, make should“always” work out. They don’t and they won’t. Getting angry about a losing bet only delays taking the appropriate actions to correct it.
“Loss aversion” is the type of thinking that can be very dangerous for investors. The best course of action is to quickly identify problems, accept that investing contains a “risk of loss,” correct the issue and move on. As the age-old axiom goes: “Cut losers short and let winners run.”
Greed – greed causes more investors to lose more money than at the point of a gun.
The human emotion of “greed” leads to “confirmation bias” where individuals become blinded to contrary evidence leading them to “overstay their welcome.”
Individuals regularly fall prey to the notion that if they “sell” a position to realize a “profit”that they may be “missing out” on further gains. This mentality has a long and depressing history of turning unrealized gains into realized losses as the investment eventually plummets back to earth.

This post was published at StreetTalkLive on 09 September 2014.

sept 9/Looks like Germany is now repatriating its gold faster than thought/no change in gold or silver inventories at GLD/SLV/gold and silver rebound in access market/

So without further ado………………
Let’s head immediately to see the data has in store for us today.
First: GOFO rates/
All months basically moved towards the positive needle (except one year out) as they must have found a few bars to lease
London good delivery bars are still quite scarce.
Sept 9 2014
1 Month Rate: 2 Month Rate 3 Month Rate 6 month rate 1 yr rate
.10000% .1080000% .1200% .1400% .236000%
Sept 5 .2014:
1 Month Rate 2 Month Rate 3 Month Rate 6 month Rate 1 yr rate
09400% .104000% .116000% .13800% .23000%
Let us now head over to the comex and assess trading over there today,

This post was published at Harvey Organ on September 9, 2014.

Gold Daily and Silver Weekly Charts – Learning to Love the Fed’s Bubbles Our Only Choice

Apparently today is my day to pick on poor Paul Krugman. I read this in a doctor’s waiting room today, and it was just too illustrative of a certain institutional mindset to go by unremarked.
Paul is responding to questions for an interview in the latest issue of Princeton Magazine.
Are bubbles good or bad and do we need them to create strong economic growth and reach higher levels of employment?
Bubbles are bad if you have an economy near full employment, where they divert resources from their proper use and set the stage for financial instability. In a depressed economy, even ill-conceived spending can help create jobs, so bubbles aren’t necessarily bad. There are reasons to believe that we’re facing an era of persistent economic weakness, which means that we’ll only feel prosperous during bubble periods.
Please comment on how artificially low interest rates have impacted the current value of baby boomers’ retirement portfolios and should this be a consideration of the Federal Reserve?
Oh, boy. What do you mean ‘artificially low’? Compared to what? The appropriate level of the interest rate, most economists would say, is the rate that gives us full employment without inflation; since we don’t have full employment, that says that rates are too high.
And no, the Fed’s job is to stabilize the economy, not to protect incomes of some groups at the expense of that mandate.
Paul Krugman, Princeton Magazine
It’s one thing to infer that the economists of the professional status quo believe these sorts of things. And its quite another to see it in print.
Paul apparently thinks that bubbles are not really a problem if you are not at ‘full employment,’ because they might be stimulus. Oh boy, what do you mean ‘full employment?’ Does that mean everyone who wants a shit job without benefits at a below poverty level wage can have one is ‘full employment?’

This post was published at Jesses Crossroads Cafe on 09 SEPTEMBER 2014.

AAPL Stock Fades On ‘Apple Watch’ Unveiling

It’s square with a metal band, rotating dial…

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

Gold Seeker Closing Report: Gold and Silver Rally Back Higher in Late Trade and End with Gains

The Metals:
Gold dropped $7.97 to $1247.63 in early afternoon New York trade, but it then rallied back higher into the close and ended with a gain of 0.07%. Silver slipped to $18.879 at one point, but it then bounced back higher in the last hour of trade and ended with a gain of 0.32%.
Euro gold fell to about 970, platinum lost $12 to $1383, and copper fell 6 cents to about $3.11.
Gold and silver equities saw slight gains for most of the morning before they fell to see about 1% losses at about 2PM EST, but they then jumped back higher in late trade and ended with about 1% gains.

This post was published at GoldSeek on 9 September 2014.

Read this and find out if you’ll be eligible for Scottish passport in 10 days

Santiago, Chile
Anyone who’s ever seen the movie Braveheart has heard of William Wallace, one of the original heroes of Scottish independence.
Though Mel Gibson’s highly fictionalized account was one of the most historically inaccurate movies in modern cinema, Wallace did, in fact, lead Scottish rebels against English invaders. And he died for his cause.
Wallace was severely tortured after being convicted of high treason against King Edward I; he was dragged by horses, hung nearly to the point of death, revived, relieved of his manhood, ritualistically disemboweled, made to watch his entrails set ablaze… then finally beheaded.
Not the way you want to go.
That said, the movement for Scottish independence lived on, and England folded in 1357, ending a 60-year war between the two nations.
For the next 350 years Scotland remained an independent state until… go figure… a financial crisis.
In a desperate attempt to become (almost overnight) a major world trading power in the 17th century, the government of Scotland backed a comically ill-fated attempt to colonize Panama.
It failed miserably. Yet the investment in the Darien Scheme (as it was known) amounted to up to half of Scotland’s total money supply.
When it went bust, Scotland was nearly broke.

This post was published at Sovereign Man on September 9, 2014.

The Buyback Party Is Indeed Over: Stock Repurchases Tumble In The Second Quarter

A few days ago, we reported that based on data by SocGen’s Albert Edwards, the “buyback party was over” in which Edwards said: “Much has happened over the summer, but two landmark firsts have occurred only recently, with the S&P500 breaking above 2,000 and the 10y bund yield breaking below 1%. Our Ice Age thesis has long called for sub-1% bond yields and I see this extending to the US and UK in due course. It is the equity markets where I have been consistently surprised. QE has been an essential driver for the equity market, providing the fuel for the heavy corporate bond issuance being used for share buybacks. Companies themselves have been the only substantive buyers of equity, but the most recent data suggests that this party is over and as profits also stall out, the equity market is now running on fumes.“

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

My Call On The Precious Metals Sector

I think the best indicator that we are at a bottom is the attacks I have been getting via email, comments that I can’t post because they are so insanely idiotic and even on twitter. Frankly, given the degree of manipulation by the Fed-sanctioned banks and the anti-gold bias of the financial media, I am stunned that anyone would expect that my ‘bottom’ call would be perfect to the day. Here’s an example of completely fraudulent propaganda coming directly from Wall Street. This was an email received by Dennis Gartman yesterday that he published in his daily newsletter today:
‘Interestingly we got an e-mail yesterday from an individual noting that he had been told by his brokerage firm that it was illegal to own gold in non-US dollar terms. This is nonsense; of course one can own gold in non-US dollar terms… otherwise the NYSE would be trading our ETFs… GYEN; GEUR, GGLD and GLDE illegally, or the CME would be illegally allowing us to be long of gold/short of the EUR, or the Yen or Sterling or any combination therefore. We are stunned by the nonsense that is sometimes so prevalent in the markets.’

This post was published at Investment Research Dynamics on September 9, 2014.

Japan GDP Collapses 7.1% After Tax Increase – OOPS!

Often I get nasty emails from socialists who just want to raise taxes on the rich to punish them for having more than they do. Sorry, an honest correlation between economic growth and taxes demonstrates the higher the tax rate, the lower the economic growth. Japan’s economy provided a stark confirmation of this correlation as it shrank an annualized 7.1% in a single quarter – April-June. This has exceeded ALL preliminary estimates and it has confirmed the they jump in the sales tax has resulted in less consumer spending that is far bigger than anyone expected.

This post was published at Armstrong Economics on September 9, 2014.

Big Banks Manipulated $21 Trillion Dollar Market for Credit Default Swaps (and Every Other Market)

Derivatives Are Manipulated Runaway derivatives – especially credit default swaps (CDS) – were one of the main causes of the 2008 financial crisis. Congress never fixed the problem, and actually made it worse.
The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.
Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed (see below) … through gamed self-reporting.
Reuters noted last week:
A Manhattan federal judge said on Thursday that investors may pursue a lawsuit accusing 12 major banks of violating antitrust law by fixing prices and restraining competition in the roughly $21 trillion market for credit default swaps.
‘The complaint provides a chronology of behavior that would probably not result from chance, coincidence, independent responses to common stimuli, or mere interdependence,’ [Judge] Cote said.
The defendants include Bank of America Corp, Barclays Plc, BNP Paribas SA, Citigroup Inc , Credit Suisse Group AG, Deutsche Bank AG , Goldman Sachs Group Inc, HSBC Holdings Plc , JPMorgan Chase & Co, Morgan Stanley, Royal Bank of Scotland Group Plc and UBS AG.
Other defendants are the International Swaps and Derivatives Association and Markit Ltd, which provides credit derivative pricing services.
U. S. and European regulators have probed potential anticompetitive activity in CDS. In July 2013, the European Commission accused many of the defendants of colluding to block new CDS exchanges from entering the market.
‘The financial crisis hardly explains the alleged secret meetings and coordinated actions,’ the judge wrote. ‘Nor does it explain why ISDA and Markit simultaneously reversed course.’

This post was published at Washingtons Blog on September 9, 2014.

iClock Runs Out On S&P 2000

With Bono’s words still hanging in the air, the market’s response to Apple’s unveiling is simple: “we still haven’t found what we’re looking for.” Some argue the weakness is AAPL-related, others point to AUDJPY fun-durr-mentals, but the bottom-line is the Fed hinted at more hawkishness, short-term bonds are weakening (long-end rally with notable flattening), VIX is rising and inverted (to 1-mo highs), and HY credit is getting ugly once again as it seems stocks are indeed catching on to the fact that the Fed will really be removing the punchbowl… S&P fell to 3-week lows as AUD collapsed (but EUR strength sent the USD lower on the day) and lost the crucial 2,000 level by the most since it was first breached.

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

The Legal Manipulation of India’s War on Gold

India prepares for shining return of gold demand … Festival season is kicking off in India – a period in which gold sales traditionally spike in the world’s largest consumer market for the precious metal. This year investors are watching the key market particularly closely, following a period of muted demand when bourses have rallied and supply has been choked. The recently elected government of Prime Minister Narendra Modi surprised industry analysts by keeping import controls unchanged in its July maiden budget, in spite of an improvement in India’s trade balance. At the same time, gold demand has become subdued in India, as domestic investors favour equity markets, which have risen 25 per cent in the past six months on hopes of renewed economic growth following Mr Modi’s victory in May. – Financial Times
Dominant Social Theme: We would all be better off without this barbarous metal.
Free-Market Analysis: Last year, India’s government made it harder and more expensive to import gold and this article in the Financial Times trumpets the success the government has had in its war on gold.

This post was published at The Daily Bell on September 09, 2014.

The Price of Gold and the Art of War, Part I

If you wait by the river long enough, the bodies of your enemies will float by
Sun Tzu, The Art of War, Fifth century BC
Only fools and the ideologically impaired believe that today’s capital markets are free. In free markets, prices are determined by supply and demand. In capital markets, supply and demand considerations are subordinated to capitalism’s increasingly dysfunctional monetary menses, i.e. credit flows, emanating from central banks. Of all markets, today’s gold markets are the least free.
For almost three centuries, gold played a critical role in the bankers’ extraordinarily successful scheme to defraud society by substituting debt-based money in place of savings-based money, silver and gold, by introducing otherwise suspect paper money into circulation via the ubiquitous mechanism of credit so as to profitably skim societal productivity, entrepreneurial ingenuity and constantly increasing government expenditures via constantly compounding interest.
In the early 20th century, a negative trade balance beginning in the 1870s exacerbated by the overhead of an aging empire beset by nationalist insurgencies and the military costs of preparing for WWI, forced England to share the care and feeding of its golden goose, capitalism, with its former colony, the United States of America.
This was done in 1913 by the creation of a carbon copy of its central bank, the Bank of England, in the US with the enactment of the Federal Reserve Act. The reason given was that the establishment of a central bank in the US would prevent financial crises from occurring in the future as they had in the past.
The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.
Only two decades later, the Fed’s loose credit policies resulted in the speculative excesses of the 1920s, i.e. the ‘roaring twenties’, and the subsequent 1929 collapse of the New York Stock Exchange which plunged the US into the Great Depression of the 1930s – a crisis which made the financial panic of 1907 look like a mild case of neurasthenia.

This post was published at GoldSeek on 9 September 2014.

To Avert Sudden Market Collapse, the Fed Tries to Spook Utterly Unspookable Markets

There have been prior indications – though Wall Street brushed them off. During Fed Chair Janet Yellen’s testimony to the Senate Banking Committee in mid-July and in the Fed’s Monetary Policy Report, some of the most glaring bubbles that the Fed has so strenuously inflated since the Financial Crisis suddenly appeared on the Fed’s official worry radar.
Yellen lamented ‘valuation metrics’ of stocks that appeared ‘substantially stretched.’ She pointed at biotech and social media. PE ratios were ‘high relative to historical norms.’ She even acknowledged the greatest credit bubble in history by fretting about the ”the reach for yield’ behavior by some investors’ and how ‘risk spreads for corporate bonds have narrowed and yields have reached all-time lows.’ And she bared the disconnect between the markets and the Fed: increases in the federal funds rate ‘likely would occur sooner and be more rapid than currently envisioned.’
Other Fed heads have chimed in with warnings of their own, telling the markets that rates could rise sooner and more rapidly than the markets were pricing in. But it all fell on deaf ears. Stocks have risen since, including the very sectors that Yellen tried to prick, and yields have dropped.

This post was published at Wolf Street on September 9, 2014.