How Banks Continue FX Rigging Right Under The SEC’s Noses

The good news is that the rigging of the FX markets – now conspiracy fact, not conspiracy theory – has, according to Bloomberg, forced the world’s biggest banks to overhaul how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation with the “modernization of processes that probably should have been brought in 15 or 20 years ago.” However, the FX market is far from ‘clean’ as Bloomberg notes, while banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are still communicating with clients and counterparts at other firms via Snapchat, circumventing their company’s controls right under the nose of the SEC. As one trader commented, “these [reform] changes look like fig leaves.”

This post was published at Zero Hedge on 09/16/2014.

Can The Petrodollar Survive Low Interest Rates?

Where does capital really come from?
Most US policymakers believe that capital comes from debt issued by the Fed and its member banks; most other big debtor countries agree (i.e. Japan). On the other hand, policymakers of the world’s biggest creditor nations (led by China) believe that real capital is the surplus produced from production and trade (which has been mainly accumulated in US dollars and ultimately backs the US dollar as the primary reserve currency).
For the past 7-12 years the two conflicting ideas about capital have begun to have noticeable effects in certain global asset markets. The chart below, showing gold, oil, and Fed Funds rates, illustrates what has occurred. For most of the three decades from 1973-2002, these asset classes traded closely together; in the last decade, they have been diverging dramatically.

This post was published at Zero Hedge on 09/16/2014.

Central Bankers Ready To Attack Syria Under The Pretext Assad Unleashed The Islamists – Episode 468

The following video was published by X22Report on Sep 16, 2014
Germany recovery is now falling a part and investor sentiment has fallen for 9 consective months. Shanghai gold exchange going live earlier than expected. FED giving illegals more time keep Obamacare. NSA program has been renewed and is continually spying on the American people. China sending more medical personnel to West Africa, meanwhile US is sending 3000 military personnel. NATO rejects Crimea vote, says illegal. US deploying another 1600 military advisers to Iraq which brings the total up to 3900 boot on the ground. Corporate media, US Government making the link between Assad and the Islamic State in preparation to attack Syria.

Gold Seeker Closing Report: Gold and Silver Find Slight Gains Before Fed Day

The Metals:
Gold climbed $8.01 to $1241.91 in London before it dropped back to $1232.14 at about 10AM EST, but it then bounced back higher in late morning trade and ended with a gain of 0.13%. Silver rose to $18.848 in London before it fell back to $18.616, but it still ended with a gain of 0.16%.
Euro gold remained at about 953, platinum gained $3 to $1362, and copper jumped 7 cents to about $3.16.
Gold and silver equities fell over 1% in the first half hour of trade, but they then rose to see about 1% gains by late morning and remained near that level for the rest of the day.

This post was published at GoldSeek on 16 September 2014.

Are These The People Whose “Confidence” The Conference Board Polls?

The diverging fortunes of the myriad ‘consumer confidence’ surveys that are plastered across various trading terminals every months is nowhere more evident than in the exuberance exhibited by University of Michigan or Conference Board respondents relative to Gallup or Bloomberg survey respondents. As the following chart shows, the ‘representative’ group being surveyed appears to be quite different…

This post was published at Zero Hedge on 09/16/2014.

sept 16.big loss of 4.18 tonnes of gold heading to Shanghai/huge importing of gold into India/Silver oi remains at record levels/

Gold closed up $1.60 at $1235.20 (comex to comex closing time ). Silver was up 10 cents at $18.65
In the access market tonight at 5:15 pm
gold: $1235.45
silver: $18.67
GLD : a huge loss of 4.2 tonnes of gold at the GLD (inventory now at 788.22 tonnes)
SLV : today no change in silver inventory at the SLV/inventory oz/ rests at 339.486 million oz .
The big news today is the massive open interest remains elevated in silver on the comex. John Embry offers his insights to the silver conundrum.
I am sorry that my commentary tonight is awkward as I only have my laptop and I am unaccustomed to its use. However I did provide the key articles for you today. We will discuss these and other stories
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 as they must have found a few bars to lease. On the 22nd of September the LBMA will not publish GOFO rates. ( I guess the manipulation is getting to them)
London good delivery bars are still quite scarce.
Sept 16 2014
1 Month Rate: 2 Month Rate 3 Month Rate 6 month rate 1 yr rate
.15000% .1540000% .15600% .17400% .262000%
Sept 15 .2014:
1 Month Rate 2 Month Rate 3 Month Rate 6 month Rate 1 yr rate
14200% .144000% .154000% .16800% .25800%
Let us now head over to the comex and assess trading over there today,

This post was published at Harvey Organ on September 16, 2014.

The Number Of Volcanic Eruptions Is Increasing And That Could Lead To An Extremely Cold Winter

The number of volcanoes that are erupting continues to rise, and scientists cannot seem to explain why this is happening. In 2013, we witnessed the most volcanic eruptions worldwide that we have ever seen in a single year, and this increased activity has carried over into 2014. In recent months, we have seen major volcanoes roar to life in Russia, Peru, Hawaii, Reunion Island, Indonesia, and all over Alaska. It is highly unusual for so many volcanoes to all be erupting at the same time. According to Volcano Discovery, a whopping 34 volcanoes are erupting around the globe right now. This is sending a massive amount of dust and ash into the upper atmosphere, and it may explain why many parts of the planet are experiencing strangely cold weather at the moment. If this trend continues, we could potentially be facing years of crop failures and widespread famines all over the world.
And what we have witnessed already may just be the beginning. There are several more very large volcanoes around the globe that scientists are extremely concerned about right now.
For example, just check out what is going on in the Philippines…

This post was published at The Economic Collapse Blog on September 16th, 2014.

Scottish Referendum Preview: In 170 Years, Voters Chose “Independence” 88% Of The Time

Ahead of Thursday’s critical Scottish Independence vote, we thought some context was worthwhile. As The Guardian notes, history shows that when people are asked, they almost always say yes to independence. Every election, country and place’s history is unique and different. Scotland is no exception. Yet, when given the opportunity, The Guardian finds countries tend to vote in favour of independence, and to do so decisively – across 50 votes since 1846, the vote for independence came out on top 88% of the time (and when the margin was small, voters always sided with independence.) But this time is different, right?

This post was published at Zero Hedge on 09/16/2014.

What’s The “Best” Way To Make A 10% Return?

Aside from the “sure thing” of buying the Alibaba IPO, achieving a 10% yield return in the new normal world requires leverage and excess risk-taking. To compare the risk/reward of various assets, Citi accounts for haircuts and leverage costs of the typical investor and finds an investors needs a 1.9x leverage in the S&P 500, 8.1x leverage in Treasuries, and 2.3x leverage in high-yield to achieve (based on historical norms) the required return. However, after accounting for downside risks, high-yield cash and leveraged loans both top the S&P 500 as the best way to meet a 10& bogey return.

This post was published at Zero Hedge on 09/16/2014.

Dow Hits New Record Intraday-High Ahead Of Fed & Scottish Uncertainty

Overnight weakness in Asia and Europe was shrugged off. The Dow hit all-time record highs (first since July) and the S&P broke back above 2,000 following headlines proclaiming a “stealth QE” from China (which actually hit the news during the Asia session) and chatter from WSJ’s Hilsenrath that The Fed will leave the words “considerable period” in the statement tomorrow. Early weakness in stocks was ripped 25 points higher in the S&P on the back of a 97% correlation to AUDJPY (China-driven), the USD dumped to unch for the week (worst day since May), commodities all took off higher (led by Copper and Oil), and Treasuries flip-flopped to end steeper (5Y -5bps, 30Y 1bp on the week). “Most Shorted” stocks squeezed higher. HY credit compressed with stocks rally but decoupled later in the day. The Nasdaq and Russell (nearing death-cross) remain red on the week despite today’s exuberance. VIX was smashed back under 13 (which makes perfect sense because there is no uncertainty this week at all). S&P closed below 2,000 and The Dow “off the highs”.

This post was published at Zero Hedge on 09/16/2014.

4 C’s That Could Change The Financial World As We Know It, Again

4 C’s That Could Change The Financial World As We Know It, Again
Those 4 C’s are: Confirmation, Crisis, Contagion, Catastrophe.
What type of confirmation could send the financial markets into such turmoil it could rock the very bastions of finance as we now know it?
First: Scotland votes yes to leave the U. K. If this turns out to be so, it could send shock-waves throughout the markets that run the world. i.e., Forex or World currencies.
No one with any financial acumen can look seriously at the markets as they stand at the time of this writing, and seriously argue the markets are prepared for such a resolution happening this Thursday.
If Scotland truly does vote Yes and confirms independence from the U. K. the initial shock-waves in my opinion that will hit the markets will be akin to the video we’ve all seen 1000 times when a nuclear device is unleashed with a house being obliterated. Or, the one where trees are bent over near flat to then reverse back the same.
In my humble opinion this could be a metaphor of what could take place. The reason is simple: By proof of the markets as they stand today, it is proof prima facie that everyone (especially so-called ‘smart crowd’) thinks it won’t happen. And the odds via polling alone show it to be the equivalent of a coin toss!
If this happens it will also confirm something just as real, and quite possibly far more instructive: With both a Federal Reserve meeting being held just days prior to such an event, the language out of this meeting could not be more important.
If it’s some revised boilerplate ’till conditions improve, extended period, blah, blah, blah’ based press release and conference, it will again confirm what many believed from the start, The Fed is both deaf, blind, and ill prepared to handle what might be an event such as this. An event that has the potential to make the crisis of 2008 the equivalent of a firecracker as opposed to what might be unleashed if Scotland does indeed secede.
The ramifications are truly unknown, unquantifiable, and what might be worse – unmanageable.

This post was published at Zero Hedge on 09/16/2014.

Gold Daily and Silver Weekly Charts – Straining

“The first item on my agenda would be to restore democracy to the United States of America by overturning this disastrous Citizens UnitedSupreme Court decision.
Why do I put that issue first? Why not health care, why not jobs? Because if you end up with a Congress or with governors or legislatures who are beholden to the billionaire class, we are never going to make progress on any issue that impacts working families.
And in my very strong opinion – and I speak to you as chairman of the veterans committee in the Senate – I do not believe that people fought and died for democracy so that billionaires can buy elections.’
Bernie Sanders
A number of people have remarked upon the ballooning open interest in the silver market on the Comex. When the number of open contracts goes higher on a down movement in price, that is more indicative of short selling than of longs selling their contracts and closing them out, obviously. I also hear that there was a remarkably large expansion in the inventory of SLV the other day, causing some of wonder at the source of all that silver.

This post was published at Jesses Crossroads Cafe on 16 SEPTEMBER 2014.

Can gold finally recover?

Gold recently fell to its lowest level in seven-and-a-half months as the dollar rose to a 14-month high. Easing tensions in Ukraine and the Middle East also acted as a drag on gold and silver prices. Investors have been asking the obvious question as to whether gold can recover from here and if a bottom of at least short-term duration is imminent?
Dollar strength has been especially hard on the precious metals of late. Commodity prices in general have been beaten up in recent weeks by the surging U. S. dollar index, as sagging gold and silver prices attest.

This post was published at GoldSeek By Clif Droke, Gold Strategies Review/16 September 2014.

Russia Central Bank Responds To Domestic Dollar Shortage, Starts Currency Swaps

With the Ruble hitting record lows once again today against the USDollar, it appears concerns over USD liquidity are growing in Russia. The Russian central bank has unveiled an FX swap operation, allowing firms to borrow dollars in exchange for Rubles for a duration of 1 day (at a cost of 7%p.a.). Of course, this squeeze on USD funding – driven by Western sanctions – will, instead of isolating Russia, force Russian companies (finding USD transactions prohibitively expensive) into the CNY-axis, thus further strengthening the Yuanification of world trade and the ultimate demise of the USD as reserve currency.

This post was published at Zero Hedge on 09/16/2014.

SP 500 and NDX Futures Daily Charts – Within Striking Distance of a New Dow All Time High

“Do you know what you are singing about? You are singing of brotherhood, but in your face you look like you hate everyone. That will show in your music.”
Arturo Toscanini
Stocks were in rally mode today as Wall Street looks forward to tomorrow’s FOMC decision. Because of the weaker economic data, there were more hopes that the decision would not contain any hawkish language. I expect the taper to continue on schedule. I do not think that the Fed will do anything new just yet. After the bell the President tried to reassure the American people that the ebola outbreak in Africa would not spread to US shores, and if it did, it would be quickly quarantined. Geopolitical risk was apparently off the table today. It is hard to be too cynical about these markets. Alibaba is on the way.

This post was published at Jesses Crossroads Cafe on 16 SEPTEMBER 2014.

I Know – Let’s Screw Some More Poor People!

When are you folks in the black community going to do something about this ******* in the Oval Orifice that keeps using your orifices as playthings for his policies?
The Obama administration is moving to ease access to student loans for parents with damaged credit, a policy reversal that could saddle poor families with piles of debt but also boost college enrollment.
Under a plan likely to take effect next year, the Education Department would check the past two years of a borrower’s credit, instead of the current standard of five, for blemishes such as delinquencies or debts in collection. Also, any delinquent debts below $2,085 would be overlooked; currently, delinquencies of any amount are grounds for rejected applications.
These are what are known as ‘Plus’ loans.

This post was published at The Daily Sheeple on September 16th, 2014.

The “Calpers vs Hedge Funds” Debate In Just Two Charts

While some are shocked by Calpers’ decision to abandon hedge funds as an investment class (the first of many such “exits”), there really should be no surprise here. As we have said year after year after year (and so on), it was only a matter of time before limited partners said “enough” and stopped paying 2 and 20 to overpaid asset managers in a world in which central banks have “guaranteed” there is no longer any risk, just to underperform the market for a whopping 6 years in a row now. And to showcase where Calpers decision came from here are just two charts.

This post was published at Zero Hedge on 09/16/2014.