The Next Experiment, Part 1: Japan Prepares To Buy Pretty Much Everything

For most of the world, the past decade’s monetary and fiscal experiments are viewed as failures. See, for instance, French support for the EU project crumbling on both left and rightand Why were smart people suckered by Abenomics?
So what do the best and brightest now running global economic policy do when their experiments don’t work? Apparently they double down, repeating the experiment with an even bigger dose. In Japan:
BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says
(Bloomberg) – The Bank of Japan could announce a ‘massive stimulus program’ as the nation seeks to reach a 2 percent inflation target, according to UBS Wealth Management.’It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,’ said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. ‘They could announce a massive stimulus program both on the monetary and fiscal side or they could end up reducing their inflation targets. Right now, it looks like they are going to use more stimulus. ‘
Governor Haruhiko Kuroda said over the weekend in the U. S. that the central bank won’t hesitate to boost monetary stimulus if needed, and there is ample space for additional easing. He also said at the Federal Reserve’s annual policy retreat in Jackson Hole, Wyoming, that the central bank will carefully consider how to best use policy to achieve its price stability target.

This post was published at DollarCollapse on AUGUST 29, 2016.

Will The Election Be Hacked: FBI Finds “Foreigners” Breached Two State Election Databases

With both political parties increasingly sensitive to allegations of electoral rigging in the upcoming presidential elections, whether due to direct manipulation of the counting process or as a result of “hacks” potentially leading to accusations of vote rigging by the losing candidate and their supporters, today’s striking news that the FBI has evidence that hackers targeted two state election databases in recent weeks may be a harbinger of what is to come.
According to Reuters, the FBI is urging U. S. election officials to increase computer security after it uncovered proof that hackers targeted two state election databases in recent weeks, according to a confidential advisory. The warning was in an Aug. 18 flash alert from the FBI’s Cyber Division. Reuters obtained a copy of the document.
Yahoo News first reported the story Monday, citing unnamed law enforcement officials who said they believedforeign hackers caused the intrusions. Citing a state election board official, Yahoo News said the Illinois voter registration system was shut down for 10 days in late July after hackers downloaded personal data on up to 200,000 voters. The Arizona attack was more limited and involved introducing malicious software into the voter registration system, Yahoo News quoted a state official as saying. No data was removed in that attack, the official said.

This post was published at Zero Hedge on Aug 29, 2016.

Central Banks = Welfare for the Wealthy

Central banks can only do one thing, and that’s provide monetary welfare for the wealthy.
The fact that central banks provide welfare for the wealthy is now entering the mainstream. The fact that all central bank policies since 2008 have dramatically increased wealth and income inequality is now grudgingly being accepted as reality by mainstream economists and the financial media.
The central banks’ PR facade of noble omniscience on behalf of the great unwashed masses has cracked wide open. Even The Wall Street Journal is publishing critiques of Federal Reserve policies that suggest the Fed has no idea how the U. S. economy actually works because their policies have failed to help the bottom 95%.
The grudging admission that central bank policies have enriched the rich while failing to benefit the bottom 95% is a breakthrough–the stone wall of denial has finally been pierced. The mainstream media and the Establishment have resolutely clung to the self-serving fantasy that the Federal Reserve 1) knows what’s it’s doing and 2) is boosting a “recovery” that will soon achieve self-sustaining “escape velocity”–that is, the economy will generate its own growth and the Fed can dial back its zero-interest rate policy and all its other unprecedented monetary easing measures.
But like a strung-out junkie that needs ever-stronger injections of smack just to stay alive, the U. S. economy is now totally and completely dependent on central bank heroin to keep from crashing. Rather then wean the economy of central bank largesse, the Fed has made the entire economy dependent on zero interest rates, central bank asset purchases and quantitative easing.

This post was published at Charles Hugh Smith on AUGUST 29, 2016.

The “Devastating” Truth Behind America’s Record Household Net Worth

Every quarter, as part of its Flows of Funds statement, the Fed releases a detailed breakdown of America’s assets and liabilities, of which the most interesting section is the one dealing with US household wealth and debt, and most importantly, their net worth. The last such release in June showed that as of March 31, total US household assets rose decidedly above $100 trillion, hitting an all time high $102.6 trillion, offset by $14.5 trillion in liabilities, resulting in $88.1 trillion in household net worth. It is worth noting that of this $100 trillion in assets, 69% was in the form of financial assets (stocks, mutual funds, pensions, deposits, etc), and only $31.5 trillion was real, tangible assets including $26 trillion worth of real estate.

This post was published at Zero Hedge on Aug 29, 2016.

COULD THE INTERNET BE SET TO BE SHUT DOWN ON THE EVE OF JUBILEE, OCTOBER 1ST?

Ever since we caught on to the Shemitah timetable that Jonathan Cahn had discovered, we’ve discovered clue after important clue about the potential timetable being followed by the globalists towards creating a New World Order.
Christine Lagarde, with her ‘magic number 7′ numerology speech caught our interest. Then, William White of the IMF talking about how a debt jubilee was coming which will wipe out most paper assets also got our attention.
And, we discovered that the Jubilee Year, also called the Super Shemitah, ends on October 2nd of this year.
Because of that we’ve been watching those dates carefully. Probably the most significant event we’ve seen yet is that the Chinese Yuan will be put into the IMF’s SDR currency basket on October 1st. This, alone, could set off shockwaves in the markets.
But, now, another major event has just been announced to occur on October 1st.
The United Nations could take over control of the Internet on October 1, when the Internet Corporation for Assigned Names and Numbers (ICANN) passes from US administration to the control of a multilateral body, most likely the United Nations International Telecommunications Union (ITU).

This post was published at Dollar Vigilante on AUGUST 29, 2016.

Gold Daily and Silver Weekly Charts – What Hump?

“What dost thou see, lone watcher on the tower
Is the day breaking? comes the wish’d-for hour?
Tell us the signs, and stretch abroad thy hand
If the bright morning dawns upon the land.
The stars are clear above me, scarcely one
Has dimm’d its rays in reverence to the sun;
But yet I see, on the horizon’s verge,
Some fair, faint streaks, as if the light would surge.”
Charles Mackay, The Watcher On The Tower
What failing economy?
Gold and silver drifted higher today in what can best be described as ‘lackluster trading.’
The Comex was too bored with its own paper bullion game to even provide data on deliveries last Friday, as you can see from today’s delivery report to be found below.
As you may recall, there will be a Non-Farm Payrolls Report for August this Friday. It will be closely watched because one of the last ‘safe’ opportunities for the Fed to raise rates 25 bp before the election will be this September.
Janet’s minder, Stanley Fischer, will be speaking on Bloomberg at 6:30 AM tomorrow, and he may have some things to say that *could* move the markets a bit, as he is sometimes inclined to do.

This post was published at Jesses Crossroads Cafe on 29 AUGUST 2016.

How Many Monitors Does The Co-CEO Of The World’s Biggest Hedge Fund Need

If you answered “at least 10”, you are correct.
As the following photo, courtesy of @FCFYield shows, Greg Jensen, 42, Co-CEO/CIO of the world’s largest hedge fund Bridgewater (until recently Ray Dalio’s heir apparent, until he featured prominently in the news earlier this year when he was rumored to be abdicating his executive role after an alleged spat with his boss), needs over 10 square feet of real estate to keep track of all the ways that the fund’s “risk parity” strategies can go wrong. Or perhaps just to more effectively spy on the employees at the fund, which the NYT recently dubbed a “cauldron of fear and intimidation.”
And then there is the reflexive rhetorical question: is owning more screens than most other traders on Wall Street a necessary and sufficient condition to managing $150 billion, or is it the other way round.

This post was published at Zero Hedge on Aug 29, 2016.

Conspiracy Theories

The term ‘conspiracy theory’ has been part of our culture for a very long time. It is often justifiably followed by the word ‘nut.’ It is also a way to stop discussion, or to embarrass others from believing what is being said. The aversion to conspiracy theories flows from a revulsion at the thought that well-known events are caused by a group of people acting in secret.
If that is true, then the common-sense understanding of why things happen is defective. And if it is defective, then those who are seen as best informed are actually mistaken. They lose their standing, and we are faced with a grim world where important events have dark and unknown causes.
Those who believe in conspiracy theories think that the common explanations are defective. In their view, others fail to understand that the world doesn’t just happen. It is forged by hidden intentions. They believe that those who try to explain the world without recourse to secret agendas are either duped or part of the conspiracy.
Believing in conspiracy theories means that the world is not out of control. Instead, things are made to happen. This implies that something can be done to counter the conspirators’ actions.
There are those who believe that the price of oil fell because of a global decline in economic growth and the emergence of new technologies. In their view, nothing else is needed to explain it. There are others, though, who believe that the decline in the price of oil was deliberately engineered by some nation or powerful financial figures in order to cause harm.
If it is the former, then we are trapped by uncontrollable market forces… but at least we understand what is going on in the world. If it is the latter, then the world is controlled by powerful forces that determine the world’s fate for their own benefit.

This post was published at Mauldin Economics on AUGUST 29, 2016.

Banks Are Preparing For A Nuclear Financial Event – Episode 1061a

The following video was published by X22Report on Aug 29, 2016
Australia’s private homes sales decline by 9.7%. 10,000 retail employees might lose their jobs. Spending declines as the collapse take hold. Dallas Fed declines which is flashing red warning lights that we are now entering into a deep recession. US Government/central bank pushing for a cashless society. New SEC rule comes into effect which will push cash into Government Treasuries. Major banks in the private western central bank world are preparing for an apocalyptic financial crisis.

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Would fate permit it, the election of Hillary Clinton will be the supreme and perhaps terminal act in an Anything-Goes-And-Nothing-Matters society. Yet, even with the fabulous luck of running against a consummate political oaf, she struggles to get the upper hand, and she may land in the White House with the lowest voter turnout in modern history. And then her reward in office may be to dodge indictment for four years while the nation crumbles around her. This is the way the world ends: not with a bang or a whimper but with a cackle.
Imagine the scene following Hillary’s election. In order to salvage the last shred of its credibility, the Federal Reserve raises its overnight funds rate another quarter percent and crashes the last Potemkin semblance of a ‘recovering’ economy, that is, the levitated stock markets. Tens of millions of retired individuals previously driven into them by zero interest rate policy are wiped out. Even more gravely, pension funds and insurance companies are destroyed, but not before their troubles trigger derivative contracts with big banks which then explode and expose the inability of counterparties to make good on their ends of the bet.
In a blind panic, the Federal Reserve reverses its policy in December, drops the Fed Funds interest rate back to 25 basis points and announces the grandest new round of ‘quantitative easing’ (money printing) ever, while congress is coerced into voting for the greatest bailout of institutions the world has ever seen, along with a ‘one time’ helicopter drop of a cool trillion dollars in the form of combined tax cuts and ‘shovel-ready infrastructure projects.’ The media rejoices. The US Dollar tanks. Absolutely nobody wants US treasury bonds, bills, and notes. The pathetic remnant of the American middle class stares into the abyss. (If it looks hard enough, it sees the US government down there.)

This post was published at Wall Street Examiner by James Howard Kunstler ‘ August 29, 2016.

Trump Applauds Huma’s Decision To Dump “Pervert Sleaze” Weiner

Almost four years ago, in November 2012, long before Donald Trump was considered a legitimate presidential candidate, the republican tweeted something which in retrospect was quite prophetic: “Pervert alert – serial sexter @RepWeiner is making another step towards a comeback All girls under 18 should block him.”
Pervert alert – serial sexter @RepWeiner is making another step towards a comeback All girls under 18 should block him.
— Donald J. Trump (@realDonaldTrump) November 28, 2012

Today, Trump’s skepticism was justified, when Huma announced her official separation from Weiner, which led to the Republican presidential nominee’s commendation of Abedin’s choice to separate from her husband. ‘Huma is making a very wise decision,” Trump said in a statement. “I know Anthony Weiner well, and she will be far better off without him.”

This post was published at Zero Hedge on Aug 29, 2016.

Iceland Sounds Alarm After Largest Volcano Rocked By Big Earthquake Cluster

Six years after the eruption of Iceland’s Eyjafjallajokull volcano in 2010 caused the cancellation of more than 100,000 flights across Europe on concern that glass-like particles formed from lava might melt in aircraft engines and clog turbines, Iceland met office raised the alarm after its largest volcano was hit by the biggest tremors since 1977. Katla, named after an evil troll, is in southern Iceland about 140 kilometers (87 miles) from the capital, Reykjavik.
Two quakes larger than 4 in magnitude early Monday rocked the crater of Katla, the country’s Met Office said in a statement. That was followed by at least 10 more tremors at the volcano, which rises 1,450 meters (4,757 feet) into the air on the North Atlantic island’s southern coast.
The good news is that the Icelandic Meteorological Office is reporting that so far no tremor is currently recorded currently at Katla, which suggests that at least for the moment, no magma is making its way to the surface. Icelandic officials have not changed the alert status for Katla from normal at this point.
As Bloomberg notes, there were no immediate reports of casualties or damages to property.

This post was published at Zero Hedge on Aug 29, 2016.

Dallas Fed Respondent: “Sometime After The Election, Data Will Show That In 2016 The U.S. Was In Recession”

When the Dallas Fed released its latest manufacturing outlook survey, it revealed that when it comes to the state which during the shale boom was responsible for the bulk of highly-paid job creation in the U. S., things remain bad: as we reported earlier, after unexpectedly surging from -18 to -1.3 in July, August’s Dallas Fed plunged back to -6.2, contracting for the 20th month in a row.

This post was published at Zero Hedge on Aug 29, 2016.

How High Will Silver’s Value Increase Compared To Gold During The Next Crash? Check Out These Charts

Many investors believe the value of silver will surge much higher in percentage terms than gold during the next financial and economic crash. I happen to belong to that savvy group of silver investors, and for good reason. If we look at the charts below, the data proves that silver is certainly the more undervalued precious metals asset. Thus, it will likely make silver one of the best investment strategies of a lifetime.
While some readers may say that this is just more hype, the fundamentals provide us a pretty clear picture. That is, if we are able to understand the entire system and how things are likely to unfold.
Before I post these two charts, I want to say a few words about several emails I have received from my readers over the past week. After I wrote the article, UNLOCKING GOLD’S TRUE VALUE: The Economic Code – Finally Revealed, some readers finally understood that ENERGY is the critical factor in providing value to most goods and services in the world.
When they find out that ENERGY is everything, the LIGHT-BULBS go off and they finally get the vital importance. It took me years of research before it made sense to me. Still, the majority of my readers likely just skip over it and continue to see energy as just a part of the economy.
Even mainstream analysts separate the Energy Sector from the Health Care Sector, the Manufacturing Sector or even the Service Industry… so on and so forth. They look at energy as just a mere segment of the market. For some strange reason, they believe the Health Care, Manufacturing and Service sectors are run by Fairies or Elves. I can assure you, all sectors of the market are run by energy. Take energy away, and Apple’s products and stock price would get flushed down the toilet.

This post was published at SRSrocco Report on August 29, 2016.

Mission Creep – How The Fed Will Justify Maintaining Its Excessive Balance Sheet

FOMC have changed their normalizing strategy several times and we now see the contours of yet another shift. The Federal Reserve was supposed to reduce its elevated balance sheet before moving interest higher as it would be impossible to increase the fed funds rate in the old fashioned way when the market was saturated with trillions of dollars in excess reserves. When it finally dawned on the FOMC that selling large quantities of TSY and MBS into the market was probably not a very bright idea, they created the O/N RRP to be able to raise rates without draining the financial system of reserves beforehand. Still, the thought of selling, or more accurately not rolling over, trillions worth of government debt, when SWF’s and foreign FX managers are desperate to raise USD is still not something the FOMC even want to contemplate.
So a case needs to be built for the FOMC to justify maintaining its bloated balance sheet indefinitely; conveniently enough ex-FOMC member Jeremy Stein with his Harvard colleagues Robin Greenwood and Samuel Hanson did just that in a paper called ‘The Federal Reserve’s Balance Sheet as a Financial-Stability Tool’ presented at the Jackson Hole Symposium.
Their argument is simple. When the FOMC starts to raise rates, demand for positive yielding cash-like instruments will increase, thus re-enabling financial institutions to use the commercial paper market to fund themselves cheaply and enjoy a positive carry on their maturity transformation. As our chart below shows, commercial paper outstanding, with extremely short duration, grew exponentially prior to the GFC as financial institutions used the wholesale market to fund illiquid and longer dated positions.

This post was published at Zero Hedge on Aug 29, 2016.

Ridiculous Headlines Say Surging Consumer Spending To Drive US Economic Growth

The BEA reported today that Personal Income rose and Consumer spending rose in July. The headline numbers were 0.4% and 0.3% respectively. These are seasonally adjusted month to month % gains. The numbers were also revised up for May and June. Let’s party!
The Wall Street Journal headlined:
U. S. Consumer Spending Rose in July
Domestic consumption could continue to drive economic growth over the second half
WSJ reporters Anna Louie Sussman and Ben Leubsdorf clownishly regurgitated the Establishment line.
Consumer spending rose for the fourth straight month in July, a sign that domestic consumption could continue to drive U. S. economic growth over the second half of the year.
Four consecutive months of solid spending pointed to continued confidence on the part of the consumer, supported by steady job gains and low interest rates and gasoline prices.

This post was published at Wall Street Examiner by Lee Adler ‘ August 29, 2016.

Jack Lew Furious After Europe Set To Hit Apple With “Largest Tax Penalty Ever”

Just minutes after the excitement over Apple’s new product announcement hit, The FT drops a rather more painful headline stating that Apple will on Tuesday be hit with Europe’s largest tax penalty after Brussels ruled that the company received illegal state aid from Ireland. Despite Treasury Secretary Lew’s pleas/demands just a week ago that the EU back off, the company will have to pay billions of euro in back taxes to Dublin as the European Commission moves to redraw the boundaries on aggressive tax avoidance by the world’s biggest corporations.
A week ago, Jack Lew implored Europe to reconsider…

This post was published at Zero Hedge on Aug 29, 2016.

AUGUST 29/BASEL III RULES WILL FORCE THE FED TO NEVER SHRINK ITS BALANCE SHEET!!/GOLD AND SILVER RISE/TURKEY FIRES ON USA ALLY THE KURDS IN SYRIA/USA VERY ANGRY/BIS CONTINUES TO GOLDS SWAPS WHICH…

Gold:1322.90 UP $1.40
Silver 18.76 UP 11 cents
In the access market 5:15 pm
Gold: 1322.90
Silver: 18.83
For the August gold contract month, we had a good sized 45 notices served upon for 4500 ounces. The total number of notices filed so far for delivery: 14,145 for 1,414,500 oz or tonnes or 43.996 tonnes. The total amount of gold standing for August is 44.357 tonnes.
In silver we had 4 notices served upon for 20,000 oz. The total number of notices filed so far this month: 505 for 2,525,000 oz. The amount standing in silver: 2,530,000 oz
Gold will remain subdued until Wednesday afternoon when the OTC/LBMA options expiry over in London.
Let us have a look at the data for today.
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In silver, the total open interest FELL BY 8,110 contracts DOWN to 193,747. The open interest fell PRETTY HARD DESPITE THE FACT THAT THE SILVER PRICE WAS UP 17 CENTS IN FRIDAY’S TRADING . In ounces, the OI is still represented by just LESS THAN 1 BILLION oz i.e. .968 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia &ex China).
In silver we had 4 notices served upon for 20,000 oz
In gold, the total comex gold ROSE 5975 contracts as the price of gold ROSE BY $1.80 yon Friday . The total gold OI stands at 560,430 contracts
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With respect to our two criminal funds, the GLD and the SLV:
GLD
we had no changes today at the GLD
Total gold inventory rest tonight at: 956.59 tonnes of gold
SLV
we had a small change at the SLV, a deposit of 950,000 oz / THE SLV Inventory rests at: 357.844 million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on August 29, 2016.