The Central Bank Will Need Another 4 Trillion In QE When The Economy Collapses – Episode 1055a

The following video was published by X22Report on Aug 22, 2016
The Greek people are being squeezed for everything they have, which will most likely turn into an uprising. UK predicts housing will fall by 1%, which means it will be even more. BREXIT fear mongering did not pay off. Baltic Dry Index is around the 687. Corporate defaults are accelerating and getting worse. Merkel, Hollande and other European leaders meet to reboot the EU. The FED admits it will need around 4 Trillion when another financial crisis his.


Gold:1337.70 down $3.70
Silver 18.84 down 46 cents
In the access market 5:15 pm
Gold: 1339.30
Silver: 18.92
For the August gold contract month, we had a good sized 46 notices served upon for 4600 ounces. The total number of notices filed so far for delivery: 13126 for 1,312,600 oz or tonnes or 40.827 tonnes. The total amount of gold standing for August is 42.777 tonnes.
In silver we had 0 notices served upon for nil oz. The total number of notices filed so far this month: 471 for 2,355,000 oz.
Today the raid orchestrated by the crooks was aimed at silver. The relatively high OI for the new upcoming front month of September as well as huge numbers of options in the money is scaring our bankers and thus the need to raid.
Let us have a look at the data for today
In silver, the total open interest FELL BY 962 contracts DOWN to 205,116 AND MOVING AWAY FROM ITS AN ALL TIME RECORD. ALSO THE HIT ON SILVER WAS TINY COMPARED TO THE HUGE WHACK IN THE PRICE WHICH FELL BY 42 CENTS WITH YESTERDAY’S TRADING. In ounces, the OI is still represented by just over 1 BILLION oz i.e. 1.025 BILLION TO BE EXACT or 146% of annual global silver production (ex Russia &ex China).
In silver we had 0 notices served upon for nil oz
In gold, the total comex gold FELL 5,319 contracts as the price of gold FELL BY $10.80 yesterday . The total gold OI stands at 574,502 contracts.
With respect to our two criminal funds, the GLD and the SLV:
we had a huge change today at the GLD/ a deposit of 2.38 tonnes
Total gold inventory rest tonight at: 958.37 tonnes of gold
we had another huge change into the SLV, a deposit of 3.324 million oz/ THE SLV/Inventory rests at: 358.793 million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on August 22, 2016.

Detroit Has Gone From Being The Greatest Manufacturing City In The World To A Global Joke

In 1960, the city of Detroit was the greatest manufacturing city that the world had ever seen. Nearly two million people lived there, and it had the highest per capita income in the United States. That may be hard to believe, because today it actually has one of the lowest per capita incomes of all of our major cities. Over the decades more than a million people have left the city, and thousands of abandoned homes have been torn down. But there are still tens of thousands of abandoned dwellings that remain standing, and some have sold for as little as one dollar in recent years. Once Detroit was the envy of the entire planet, but now it has become a global joke and in other countries they love to do news stories about ‘the ruins of Detroit’ to show how rapidly America is rotting and decaying. Sadly, Detroit is far from alone, because there are other formerly great manufacturing cities that have declined just as fast as Detroit has.
Earlier today, I came across a video that contains footage that someone recently captured as they drove through the city of Detroit at night. To say that the footage is disturbing would be a tremendous understatement…
It has become known as a mecca of violent crime and poverty, and now a viral video is giving an unpleasant view of Detroit after dark.
The clip, called Driving through Detroit at night, was filmed by a woman who was a passenger in a car going around the Motor City and was posted to Twitter at the weekend.
It shows terrifying scenes of gangs gathered on the sidewalk, prostitutes lifting up their skirts and dancing, and even a man being run over by a car on purpose.
I would have liked to share the video with you all, but it is just way too graphic. There really are prostitutes lifting up their skirts in the video, and a man really is hit by a vehicle. If you want to watch it for yourself, it is very easy to find on YouTube. But please be warned that children should not be watching this.
If you live in a peaceful rural or suburban setting, the kind of behavior displayed in this video may seem very foreign to you. In America today, it is way too easy to allow our televisions to define reality for us. But the warped view of reality that we get through our televisions is nothing like the real world. The real world is cold, cruel and very unforgiving.
If you are in the wrong place at the wrong time, the real world will eat you alive.
In the city of Detroit today, close to half the population is functionally illiterate, and one survey found that 60 percent of all children in the city are living in poverty. It has been reported that 40 percent of the street lights do not work, and as you can see from the video it is a very frightening place to be after dark.

This post was published at The Economic Collapse Blog on August 22nd, 2016.

Jeffrey Miller: “I Don’t Know How Dumb Things Will Get Before Central Banks Finally Stop”

Jeffrey Miller’s weekly letter did a masterful job describing how the Fed is simultaneously the most destructive organization on the planet yet also now the most useless. As we have done on numerous occasions, Miller points out the many negative consequences of the misinformed Fed policy that has driven a record $13 trillion of government debt into negative yield territory. Among those most impacted, of course, are pension funds and insurance companies. As we’ve discussed (here), pensions are locked in a never ending feedback loop where the combination of lower yields and long liability duration causes them to invest further out the yield curve which then drives yields even lower and the cycle repeats.
At some point the cycle will end but as Miller points out it’s hard to know just “how dumb things will get before they stop.”

This post was published at Zero Hedge on Aug 22, 2016.

“A Date Which Will Live In Infamy” – President Nixon’s Decision To Abandon The Gold Standard

Franklin Delano Roosevelt called the Japanese ‘surprise’ attack on the U. S. occupied territory of Hawaii and its naval base Pearl Harbor, ‘A Date Which Will Live in Infamy.’ Similar words should be used for President Nixon’s draconian decision 45 years ago this month that removed America from the last vestiges of the gold standard.
On August 15, 1971 in a televised address to the nation outlining a new economic policy entitled, ‘The Challenge of Peace,’ Nixon instructed the Treasury Department ‘to take the action necessary to defend the dollar against the speculators.’
Nixon continued:
I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interests of monetary stability and in the best interests of the United States.** Of course, any objective student of history knows that this was a lie and that it was not ‘speculators’ which were causing monetary instability, but the U. S.’s own crazed inflationary policy which attempted to fund its imperialistic endeavor in Vietnam while expanding the welfare state at home. This resulted in the Treasury losing an alarmingly amount of gold reserves to other central banks who rightly sought real value in exchange for depreciated American greenbacks.

This post was published at Zero Hedge on Aug 22, 2016.

‘Mother of all Shorts’ when Stocks Cave to Reality?

‘Everything feels distorted and unnatural’: Citigroup
On Monday, the S&P 500 index edged down 1.2 points. Over the last three trading days, the &P 500 has moved in a 12-point range, from 2175 to 2187. The index is now down a practically invisible 0.34% from its record close on August 15. Over the past 30 trading days, it had only five daily moves, up or down, of more than 0.5%, according to The Wall Street Journal, ‘equaling the lowest since October 1995.’
And trading volume has fallen asleep – much more so than during the normal summer lull. Even the algos appear to have been turned off for maintenance. Jared Woodard, a strategist at BofA Merrill Lynch, summarized it this way:
‘Last week and the week before, you had to make sure your machine was actually on because it was flashing so infrequently.’
And no one is worried about anything.
The Chicago Board Options Exchange SPX Volatility Index (VIX) – the vaunted ‘fear index’ – spent much of the past two weeks below 12, only a smidgen above the record low of July 2014.
In other words, nothing moves. But something has been moving: Earnings. The wrong way.

This post was published at Wolf Street by Wolf Richter ‘ August 22, 2016.

“Selling Puts” – Latest Pension Strategy Is Truly 2006 All Over Again

Back in the early-to-mid 2000’s large pensions and insurance companies made a very large bet on a “sure thing”. They sold trillions in notional value of credit default swaps (CDS) on mortgage backed securities. The bet was a “no brainer” as the insurance companies could collect a solid coupon payment for insuring risk on “investment grade” credits backed by U. S. housing, an asset class that had basically never declined in value. Well, as we all know, in the end, that bet didn’t work out that well resulting in a government bailout of many financials, including AIG, which received over $180BN.
Well, turns out, some of the “smart money” in this country either didn’t learn much from that event or doesn’t remember it. As the Wall Street Journal pointed out over the weekend, pension funds in Hawaii and South Carolina have adopted a new strategy, in their thirst for yield, that involves selling puts. While the insanity of the domestic equity markets, which seem to indiscriminately soar to new highs every day, might convince some that, like housing circa 2006, equity values never actually decline, Nathan Faber of Newfound Research says:

This post was published at Zero Hedge on Aug 22, 2016.

SP 500 and NDX Futures Daily Charts – Hidden Risks, Crouching Defaults

This market looks precarious. It may continue on higher as long as real, versus manufactured, volume remains unusually low.
There are enough corporate buyback programs and sovereign entities, including central banks, willing to buy US equities at these levels. The general public and institutions seem to be sitting this one out.
I suspect that when an event of sufficient magnitude or type occurs, as they do from time to time, a slide will be triggered, and the wash and rinse of the general public, their pensions and their savings, will begin once again.
The longer this goes on, the broader the set of events that can trigger the unlikely slide of consequence seems to grow.
Still, an outright crash would favor the orange-haired presidential contender, and not the poster child for the financial establishment. So that may be an unlikely bet to make before November. They seem to be going all out to sustain the unsustainable.

This post was published at Jesses Crossroads Cafe on 22 AUGUST 2016.

Dear Gary Johnson, There Is No “Free-Market” Carbon Tax

There are few things less popular in American politics than raising taxes, which is why there is a longstanding tradition of American politicians finding ways to avoid using the ‘t’ word.
While it’s not surprising to see these sorts of political shenanigans from two parties that have a history of using Orwellian word games to grow government (like the charmingly named Patriot Act), it’s extremely unfortunate to see Libertarian Party nominee Gary Johnson resorting to the same tactics.
During an interview with the Juneau Empire, Gary Johnson was asked his opinions on climate change:
‘I do believe that climate change is occurring. I do believe that it is man-caused,’ Johnson said.
To address climate change, Johnson said he believes ‘that there can be and is a free-market approach to climate change.’ That would include a fee – not a tax, he said – placed on carbon. Such a fee would make pollutants bear a market cost.
What’s interesting is that while Gary Johnson tried to distance himself from calling his proposal a tax when talking with a newspaper in the ‘red state’ of Alaska, he was more honest when discussing the idea in an editorial newsroom that looks more favorably on taxes, the Los Angeles Times. Along with crediting the free-market, and not the regulations of the Obama administration, with the decline of the American coal industry, Governor Johnson said he was ‘open also to the notion of a carbon tax. That it does have an impact, that it ends up being revenue-neutral.’
While it’s nice of Gary Johnson to not want to grow the government coffers with a carbon tax, unfortunately that detail doesn’t make this proposal any less concerning, nor any more ‘free-market.’

This post was published at Ludwig von Mises Institute on Aug 22, 2016.

The Search for Yield and Emerging Markets

The global search for yield – not an improvement in EM fundamentals – is what has been driving the EM rally this year.
Having turned dovish in February, the Fed has enticed investors to sell US dollars and pile into commodities and risk assets. This phenomenon escalated following the late June Brexit vote. The uncertainties over Brexit and global deflationary pressures led investors to conclude that the Fed would be unlikely to tighten policy meaningfully anytime soon. As a result, the search for yield has gone exponential and flows into EM have skyrocketed.

This post was published at FinancialSense on 08/22/2016.

Gold Daily and Silver Weekly Charts – Comex Silver Option Expiration On Thursday

There was surprisingly little note about a dollar body slam that was laid out on silver over the weekend in the quiet hours of trading.
Gold was hit a bit, but recovered quite a bit more of it to finish almost unchanged at 1339.
Fingers were pointing to Stanley Fischer, who looked at the economy and sees employment nearly full and inflation growing to his targets.
Maybe Stanley is trying to tee up Janet for Jackson Hole, and perhaps a Fed 25 bp rate increase in September.
After all, its all perceptions now, right? Since debt doesn’t matter and money can be printed at will and without consequences?
Talk about the jawbone of an ass.
There was intraday commentary about the money velocity indicator and the state of the economy here.
There will be a precious metals option expiration on the Comex this week. It is for the September contract which is no big thing for gold, but is definitely of more interest for silver.

This post was published at Jesses Crossroads Cafe on 22 AUGUST 2016.

Marx & Markets

Warren Buffet famously said during the 1990s dot-com bubble that he did not invest in technology because he did not understand it. Although he subsequently took a meaningful stake in IBM (which may prove his point), we suspect his technological blind spot was in reality his awareness that no matter how much a business might change the world, ridiculous valuations ensure negative returns-on-investment. There is another issue we would bet Buffett understood deeply that kept him away: one cannot make a decent ROI over time by staking a depreciating asset.
In High Cotton we asked will there come a time when we are forced to recognize that borrowing to form capital in the form of deflationary, technologically-led productivity is the macroeconomic equivalent of borrowing to buy a depreciating asset, like a car? We get what we want now, but it is counterproductive if we cannot reinvest our savings at a higher return. This is a big, conceptual topic but one that deserves critical thought and attention from investors.
The easiest way to reduce the concept is to ask yourself whether the success of Amazon and Uber should enhance GDP over time. We argue they will detract from it, but that this is a good thing. Innovation increases productivity. It does not directly increase demand or economic activity. So, if an economy’s economic model is to try to increase output growth by increasing credit (and overall debt levels as a result), then the economy’s growth model is not in sync with how it seeks to form capital. The credit issued and debt assumed may have produced higher contemporaneous GDP through increased investment, consumption and trade, but it did so at the great expense of future nominal revenues, earnings, profit margins, and, ultimately, at the great expense of balance sheet viability.

This post was published at Zero Hedge on Aug 22, 2016.

Merkel Accused Of “Fearmongering” After Telling Germans To Stockpile Food “In Case Of Catastrophe”

The German government’s civil defence plan, which as reported yesterday urged Germans to stockpile enough food and water for ten and five days, respectively “in case of an attack or catastrophe”, has been strongly condemned by the opposition party Die Linke (the Left Party), who accused Merkel that her proposal could result in a public frenzy. ‘By bringing out new plans all the time, the government could make people afraid people and even lead them to panic buy,’ Dietmar Bartsch, co-chair of Die Linke told the Rheinische Post on Monday.

This post was published at Zero Hedge on Aug 22, 2016.

OFFICIAL STATEMENT: The U.S. Mint Has NOT STOPPED Production Of Silver Eagles

According to the public affairs person at the U. S. Mint, the rumor that Silver Eagle production was halted due to lack of demand, is not true. I have been receiving lots of emails on this issue, so I decided to pick up the phone and call Michael White, public affairs person at the U. S. Mint.
I have spoken to Mr. White several times over the past five years on different issues. So, instead of going by secondary channels and the blog-sphere rumor-mill, I thought it best to get it directly from the source itself.
I called up Mr. White and he answered the phone directly. Normally, I would get his secretary or answering service. However, he picked up right away and I told him who I was and asked him if the rumor was true that the U. S. Mint stopped production of Silver Eagles.
Mr. White told me that it was not true as they continue to produce and sell Silver Eagles. I asked Mr. White if he could provide a full statement, and he said that only thing he would tell me is that they are CONTINUING TO PRODUCE and SELL SILVER EAGLES and the rumor was not true.

This post was published at SRSrocco Report on August 22, 2016.

Revealed: ECB Secretly Hands Cash to Select Corporations

Expanding its Program of Financial Darwinism
In June, the ECB began buying the bonds of some of the most powerful companies in Europe as well as the European subsidiaries of foreign multinationals. This pushed the average yield on euro investment-grade corporate debt to 0.65%. Large quantities of highly rated corporate debt with shorter maturities are trading at negative yields, where brainwashed investors engage in the absurdity of paying for the privilege of lending money to corporations. By August 12, the ECB had handed out over 16 billion in freshly printed money in exchange for corporate bonds.
Throughout, the public was given to understand that the ECB was buying already-issued bonds trading in secondary markets. But the public has been fooled.
Now it has been revealed by The Wall Street Journal that the ECB has also secretly been buying bonds directly from companies, thus handing them directly its freshly printed money.
It has been doing so via ‘private placements.’ These debt sales are not open to the broader market. There’s no need for a prospectus. Only a small number of institutional investors participate. It allows companies to raise cash quickly, without jumping through the normal hoops. Private placements are not unusual. What’s new is that the ECB used them to buy bonds.
There have been two of these secretive private placements. And Morgan Stanley arranged them. The Wall Street Journal determined this by analyzing data from Dealogic and national central banks.

This post was published at Wolf Street by Don Quijones ‘ August 22, 2016.

Important Charts

For those of you tuning in however, here are a few important charts and accompanying technical notes, to explain the big messages.
We would be amiss at this juncture not to point out the technical situation in the risk adjusted S&P 500 (SPX). (i.e. put against the CBOE Volatility Index (VIX).) At first glance you would think the SPX is a sell (volatility a buy), with the monthly SPX / VIX Ratio plot (see below) at significant sinusoidal resistance and VIX at substantial long-term support. (See monthly in Chart Room.) This is especially true if one is unfortunate enough to consider the fundamentals. They are abysmal and getting worse every day with present ‘neoliberal policies’ wrecking the economy. It’s important to remember however; fundamentals no longer matter, including sentiment conditions, at least for now. (i.e. until the election is over?) (See Figure 1)

This post was published at GoldSeek on 22 August 2016.

Ryan Lochte Has Lost All Of His Sponsorship Deals

Update: As we learned moments ago, Ryan Lochte has now lost his last two remaining sponsorships, those with Airweave and Gentle Hair Removal, meaning as of this moment, his Rio gas station “exager-gate” stint has cost him all of his future advertising endorsements.
Now if only he could find employment at the Clinton foundation…
Ryan Lochte’s drunken night out with his fellow US olympic team swimmers, culminating with a fabricated explanation of what happened at a particular Rio gas station, may end up being the costliest “fib” in the history of the Olympics. The reason: Lochte has already lost two of his core sponsors, when first swimwear maker Speedo USA said earlier today it had decided to end its sponsorship of Ryan Lochte, two days after the U. S. Olympic gold medalist swimmer admitted to exaggerating his story about being robbed at gunpoint in Rio de Janeiro, followed promptly by luxury retailer Ralph Lauren Corp, which also said it would not be renewing its contract with the swimmer.
Speedo USA said it would donate $50,000 of Lochte’s fee to Save The Children, a global charity partner of Speedo USA’s parent company. “We cannot condone behavior that is counter to the values this brand has long stood for,” Nottingham, UK-based Speedo’s U. S. unit said in a statement on Monday.

This post was published at Zero Hedge on Aug 22, 2016.

Gerald Celente Sees Worst Market Crash, New Military Conflict, and Gold Spike to $2,000/oz

Mike Gleason, Money Metals Exchange: It is my privilege now to be joined by Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is a highly sought-after guest on these programs throughout the world and has been forecasting some of the biggest and most important trends before they happen for more than 30 years now. And it’s a real honor to have him on with us today. Mr. Celente, welcome back and thank you so much for joining us again.
Gerald Celente, Trends Journal: Well thank you, Mike.
Mike Gleason: I want to start out by asking you about this massive disconnect between what the economic data is telling us versus what the stock market is saying to the investment world. For instance, we have the lowest rate of expansion in the U. S. economy since the 1940s. China is slumping, as are many other major global economies… not to mention the economic issues over there in Europe. Yet the equities markets continue to make new highs nearly every week with the S&P and the DOW continuing upward into uncharted territories. So what’s going on here? Are the economic numbers really better than what we’re being told, or is the stock market being propped up?
Gerald Celente: The stock market’s being propped up. We said this beginning with Quantitative Easing when it began, and we said that this is not a recovery. It’s a cover-up. The numbers don’t lie. The liars lie, and the markets are lying. You look at the facts, and here are the facts. You had a stretch of merger and acquisition activity unparalleled in world history because they’re borrowing money for nothing and they’re buying up companies. Then you look at the other facts, and the facts are that stock buy-backs are at record highs. What was it, like the first 3 months of this year, you looked at about, what, $160 billion worth of stock buy-backs.
And all this has done is boosted the equity markets. Again, these are the facts, and I know that the people listening to your show want the facts. Ninety-five percent of the wealth created since 2009 in the United States went to that famous 1%. It’s a fact, a fact worldwide. 62 people… everybody knows at least 62 people… imagine the 62 people that you know having more wealth than half the world’s population combined.

This post was published at GoldSeek on 22 August 2016.

Tomorrow’s Ten-Baggers, Part 1: Jay Taylor’s Favorite Juniors

Precious metals investors are a conflicted bunch right now. Most are happy with the action so far this year, and still expect rising gold and silver to send high-quality mining stocks to the moon. But most were also caught a bit off-guard by the miners’ recent spike. For every investor who loaded up on, say, First Majestic Silver at $2 in January and rode it to $20 in August, dozens more watched from the sidelines. Few today own all they’d like of their favorite miners.
So a correction, while lowering the value of current holdings, would be a welcome chance to load up on the shares that recently got away. And based on current trends (metals down a bit, miners down considerably more), a correction might be in progress as this is written.
Today, in short, seems like a good time to kick off a series highlighting the top picks of trustworthy precious metals analysts. First up is Jay Taylor, whose J Taylor’s Gold, Energy & Tech Stocks newsletter has been uncovering winners in this sector for 35 years. Three current favorites, in Jay’s words:

This post was published at DollarCollapse on AUGUST 22, 2016.