Global Sovereign Bonds Tank, Yields Rise Over 7 Basis Points In 13 Nations (Stocks Down)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
Despite stalled growth in the European Union, ECB head honcho ‘Super Mario’ Draghi held rates steady yesterday. The ECB’s key deposit rate remains at a record low -0.4%, while its refinancing rate and marginal lending rates are at 0% and 0.25% respectively.

This post was published at Wall Street Examiner on September 9, 2016.

Crude Holds Losses As Oil Rig Count Rises For 11th Straight Week

The US oil rig count rose by 7 to 414 last week – the 11th straight week of increases (and 14th of the last 15 weeks). This is the highest rig count in 7 months and is tracking lagged oil prices perfectly still…
*U. S. OIL RIG COUNT 7 TO 414 , BAKER HUGHES SAYS *U. S. TOTAL RIG COUNT 11 TO 508 , BAKER HUGHES SAYS 14th week of rising oil rigs in the last 15…

This post was published at Zero Hedge on Sep 9, 2016.

“Complacency” Has Never Been Higher

While Put-Call ratios, VIX curves, and Fear-Greed Indicators are better known, the so-called “Complacency” Index – comparing real profitability of companies to their risk – has never been more complacent. In fact, markets are more ‘exuberant’ than at the peak in 2000 and 2007…
As Bloomberg’s Christopher Langner notes, the whole world is moving together and signs of a massive bubble that spans asset classes are becoming clearer.

This post was published at Zero Hedge on Sep 9, 2016.

Police seize over 5,000 ounces of silver from man’s home

Last week in the Australian state of Queensland, federal police confiscated a whopping 5,465 ounces of silver (worth roughly $106,000) from a man’s home.
This was part of a larger series of police raids instigated by the Australian Tax Office against individuals suspected of tax evasion.
Two obvious lessons come to mind which bear repeating:
1) As we discussed yesterday, only an idiot commits tax fraud or tax evasion. This goes without saying.
There are far too many completely legitimate ways to reduce or even eliminate what you owe… which means there’s absolutely zero reason to take any chances by wilfully breaking the law.

This post was published at Sovereign Man on September 9, 2016.

What Happens When The “Fed Model” Breaks Down

With stocks having reached nosebleed valuations which clearly make no sense, which event bullish pundits slam as absurd, and which every single bank has thrown up on and is urging clients to sell into what has clearly been a relentless central bank bid, there has been just one justification for the stratospheric prices attained by equities: the so-called Fed model, which argues that all that is needed for stocks to be high is for them to be cheap relative to bond yields, or in other words, the lowers global bond yields are, the higher stocks can levitate, completely dislocated from fundamentals.
Naturally, it is this dislocation that has forced so many hedge funds to face the greatest redemption wave since the crisis, or throw in the towel altogether, as this particular “model” is nothing more than a economic justification for an asset bubble, in this case one inflated by central banks who have created the biggest bond and stock bubble in history courtesy of some $2.5 trillion in annual liquidity injections…

This post was published at Zero Hedge on Sep 9, 2016.

Real Estate Turning Down

I have explained that watch the core regions in real estate and you will forecast the rest. Real estate booms and busts always begin in the core regions. As that property rises sharply, people begin to buy what is cheaper the next two over. This is the process of the economic wave in real estate which is very much like putting a drop of water from above into a standing pool of water. The waves will spread from the epic center outward and gradually diminish.
In the United States, the three main regions for this rally in the high-end market has been New York, Miami, and Los Angles. All three markets have begun the decline and we are now watching this slowly spreading outward. Chicago real estate has begun to turn and so has the Vancouver market as well as in London, no less Paris as well as Hong Kong. The outer regions even in Britain never exceeded the 2007 high as was the case for the average market in the United States. In fact, home ownership has fallen to a 51.6 year low from the 1965 high.

This post was published at Armstrong Economics on Sep 9, 2016.

Asian Metals Market Update: September-9-2016

In spite and despite all the news etc, one should use sharp dips till the Federal Reserve meeting on 20-21 September to invest for the long term. Demand will start to pick up in silver and industrial metals as the month progresses. Factories will start making for Christmas and New Year end and also the great American Thanksgiving sales. Copper, Nickel and silver downside price risk will be limited. Zinc and lead have been outperformers however I have my doubts if they will continue their outperformer tag in the next quarter.
Today’s close is very important for all metals and energies.

This post was published at GoldSeek on 9 September 2016.

Gold Stocks’ Massive Correction

Gold stocks have suffered a terrible month, plunging in a serious selloff. The resulting carnage has left investors and speculators shaken, wondering if this red-hot sector’s blistering new bull this year has already run out of steam. These fears are misplaced, as massive corrections are common in major gold-stock bulls. They create bulls’ best buying opportunities in sentimental, technical, and fundamental terms.
It’s easy to understand why gold-stock sentiment is so bearish today, as this sector has been trashed since early August. In less than a month the gold miners went from 2016’s overwhelmingly-dominant top-performing sector to bear-market-grade losses! Falling from heroes to zeroes in such a short span of time is enough to test the resolve of even the most-hardened contrarians. It’s a tough turn of events to weather.
The leading gold-stock benchmark is the NYSE Arca Gold BUGS Index, better known by its symbol HUI. Its performance is nearly identical to that of the flagship GDX VanEck Vectors Gold Miners ETF, which is the most-popular gold-stock investment vehicle by far. Comprised of many of the same elite gold miners, both benchmarks suffered enormous losses over the past month. This year’s HUI chart tells the sordid tale.

This post was published at ZEAL LLC on September 9, 2016.

Facebook Founder Gives $20mm Donation On Hillary To Defeat Trump’s “Fear And Hostility” Campaign

A few weeks back we noted how Bullard had questioned the intentions of ex-Facebook founder Dustin Moskovitz in funding the Center for Popular Democracy’s Fed Up campaign (see “Why Is Facebook Funding “Anti-Fed” Activists“). The “Fed Up” group has mounted an aggressive effort to convince the Fed to keep rates ultra low noting they favor central banking policies that “are aimed at making sure lower income households and minorities share in the recovery to the same degree as the well off.”
Ironically, Moskovitz, and his inflated FaceBook shares, are among the key beneficiaries of “ultra low rates” and not so much the poor and struggling people of this country. A fact that was not lost on St. Louis Fed president James Bullard. Per our previous post:
When it comes to Fed Up, “it’s Facebook money,” Bullard said. “I think it’s kind of a funny thing for them to fund because they want low interest rates in an era where we are awash in low interest rates, so it’s kind of crazy, isn’t it?”

This post was published at Zero Hedge on Sep 9, 2016.

Gold and Silver Market Morning: Sep-9-2016 — Gold and silver consolidating after sharp rise!

Gold Today -New York closed yesterday at $1,337.50 yesterday. London opened at $1,335.80.
– The $: was slightly weaker at $1.1271 down from $1.1267 yesterday.
– The Dollar index was stronger at 94.94 from 94.78 yesterday.
– The Yen was weaker at 102.12 down from 101.62 yesterday against the dollar.
– The Yuan was weaker at 6.6798 from 6.6640 yesterday.
– The Pound Sterling was weaker at $1.3297 from yesterday’s $1.3348.
Yuan Gold Fix
Shanghai was roughly in line with New York’s close and London slipping a little lower.
When it comes to measuring either the increase in Chinese gold reserves or the gold imports to China we must say that the information provided by the Chinese is only what they want us to know. With last month’s announcement of a 5 tonne increase in official gold reserves we read into it that they want all to know they are continuing to increase their reserves but not at a visibly aggressive rate. There are several ways they can increase their reserves but not take them onto their books, ‘officially’.
We remind readers that they ‘own gold through their people’. That includes all gold currently inside their borders but primarily directly through state controlled institutions.
LBMA price setting: The LBMA gold price setting on Friday was at$1,335.65. Yesterday it was at set at $1,348.00.
The gold price in the euro was set on Friday at 1,185.61 against yesterday’s1,194.08.

This post was published at GoldSeek on 9 September 2016.

Oil Markets Brace As U.S. Looks To Sell 100 Million Barrels From SPR

Aging infrastructure could render the U. S. strategic petroleum reserve (SPR) increasingly ineffective, according to a new report from the Department of Energy.
The U. S. has stored roughly 700 million barrels of crude oil in salt caverns in Texas and Louisiana for decades. The SPR was established in the aftermath of the Arab oil embargo in 1973, which painfully revealed U. S. oil dependence as high prices drove up inflation, created fuel shortages and lines at gas stations, and rocked the American economy. The SPR was setup to stash 90 days’ worth of supply into storage for safekeeping, meant to be used in the event of a supply outage.
Decades of wear and tear mean that the infrastructure is now in desperate need of an upgrade. The DOE says Congress needs to cough up $375.4 million to make repairs, otherwise the SPR may not be all that effective. ‘Most of the critical infrastructure for moving crude within the SPR has exceeded its serviceable life, increasing maintenance costs and decreasing system reliability,’ the report concludes.

This post was published at Zero Hedge on Sep 9, 2016.

Fed Up Friday: Sept. 3 – Sept. 9

It seems like a long time has passed since all the hawkish talk from the Fed after the jobs report came out. That’s probably because this week has seen mounting evidence that a rate hike before December, or possibly even 2017, is now highly unlikely. Learn more about it in this week’s Fed Up Friday.
3 Reasons Fed Rate Hike Might Not Even Hit in December
Ever since the Jackson Hole symposium, a Fed rate hike in September has supposedly become more possible. But this week has brought a halt to all the speculation and a reversal of sentiment. In two short weeks, things have taken a swift 180 with chances of a 2016 decline seeming even dimmer. Michael Farr, President of Farr, Miller & Washington, can list three reasons why the next hike will be pushed to 2017:
Considerable drops in job growth, wage growth and length of work week data. Some as low as 2010 numbers.

This post was published at Schiffgold on SEPTEMBER 9, 2016.

Market Report: Good start to September

The end of August saw an options expiry plus a month-end, both factors leading to lower prices.
But despite the Labor Day holiday on Monday, which kept trade quiet this week, precious metal prices rose strongly, before some consolidation set in on Wednesday. Gold had risen from $1310 the previous Friday to a high of $1352, before drifting off to $1336 in early European trade this morning. Silver bottomed at $18.75, and rallied to $20.13 before drifting off to $19.52 on the same time-scale.
Pundits with little else to say tell us that September is traditionally a good month for gold. Nice to hear, but as they say, past performance is no guide for the future. But with August’s dog days behind us and the holiday season as well, investors are likely to give market valuations more attention. The rally in precious metal prices this week was entirely logical, as was some profit-taking in the second half.

This post was published at GoldMoney on SEPTEMBER 09, 2016.

Control What You Can

Our society does not make it easy to control what you can control.
One of the aphorisms to live by here at Of Two Minds is control what you can. We don’t control the erosion of our money from inflation, the state’s vast criminalization machinery, the nation’s foreign policies or the central bank’s free money for financiers policies. So what do we control? Amazingly enough, we still control a few things. We control what we eat (at least those of us who aren’t institutionalized do), what fitness/ stretching/ bodywork routine we do or don’t do, and we still control what we do with our surplus money: we can salt it away as savings rather than spend it, and we control where to invest our savings. Here’s a couple of thoughts on productively controlling what we can control. 1. Don’t count on bailouts, debt forgiveness, debt jubilees, guaranteed minimum income or any other form of free money. The Federal Reserve, the Treasury and the Justice Department have made it very clear: free money is for financiers, banks and corporations, and bailouts are for too-big-to-fail banks and financial institutions.

This post was published at Charles Hugh Smith on THURSDAY, SEPTEMBER 08, 2016.

Wholesale Sales Tumble Most Since January, Inventories Ratio Deep In Recessionary Territory

Wholesales sales slumped 0.4% MoM in July – the biggest drop since January. Inventories were unchanged MoM, driving the inventories-to-sales ratio back up to 1.34x. Year-over-year, this was the 19th consecutive month of declines for wholesale sales…
Notably Auto sales dropped for the 3rd month in a row but Hardware saw the biggest monthly drop in sales.
Farm products saw the biggest drop in inventories along with drugs. Auto inventories rose but professional equipment rose the most.
The absoluet gap between sales and inventories remeains near record highs…

This post was published at Zero Hedge on Sep 9, 2016.

The impoverishment of the masses

Feudal and mercantilist economic systems were characterised by the lower orders of ordinary people being enslaved by, or subjected to, the commands of an elite.
Beyond basic subsistence, serfs and slaves were not enabled to consume other goods, nor were they given the means to do so. Communism was hawked as handing power to the serfs, or workers, united in and by the state. But again, it meant that workers remained serfs, employed and commanded by a state set up in their name. Freedom from the bourgeoisie became subjugation by the state. Only capitalism, founded on free markets and freedom of choice for all, held the promise of freeing the masses from a life of drudgery and servitude.
This was what the industrial revolution in Britain was about, particularly after the Corn Laws were repealed, and also the basis for the opportunities offered in America for refugees from European feudalism and mercantilism. And as the benefits of this freedom became enjoyed by those that were freed, so the abolition of slavery followed. A minimalist enlightened government based on democracy guaranteed property ownership and ensured that individuals’ rights were enforceable. These were the simple conditions of free markets, the conditions where the lowest consumer is the master of the mightiest producer, who endeavours to serve him. These are the conditions that led to a dramatic improvement in living standards for everyone in only a few decades, an improvement that had proved impossible in all the history of feudalism, mercantilism, and communism. It was the unique achievement of Anglo-Saxon laissez-faire.
But empires strike back. Just as communism enslaved the workers in their own name, so democratic states in the name of capitalism find ways to bind their own electors. Freedoms taken for granted by the British and Americans were never fully adopted by more socialistic states, and even the Anglo-Saxons have been slowly compromised to the point where their democratic systems are now breaking down.
Central to the loss of freedom, the road to serfdom as Hayek put it, is the creation of myths. The myth that the state acts on behalf its people, when it always acts to protect itself. The myth that the state knows better what its electors want than the electors themselves. The myth that only the state has the impartiality to right all wrongs. The reality is the exact opposite. The state intervenes to prevent people from deciding the matters that directly concern them. The middle classes have been taxed in the name of redistribution to the poor, and the poor themselves in turn have been relieved of the value of their earnings and savings by monetary debasement, always in the interest of the common good.

This post was published at GoldMoney on SEPTEMBER 08, 2016.

Use This Tip to Help You Avoid Taxes Like the Top 1 Percent

Many people might have the impression that the top 1 percent of society – those making over $521,411 – deal mainly in exotic investments such as derivatives, fine art and rare French wines.
The truth is actually a lot less exciting.
It’s well documented that high-net worth individuals (HNWIs), in many respects, tend to be more practical in their spending habits than most folks. They appreciate a good deal, and they’re finely attuned to saving money where they can – one of the biggest contributors to how they got where they are.
‘What are the three words that profile the affluent?’ ask Thomas Stanley and Willian Danko in their bestseller The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. The answer? ‘FRUGAL FRUGAL FRUGAL.’
This penny-pinching attitude extends to their investment decisions.
So if they’re not investing in Picassos and Renoirs, or $20,000 bottles of Romane-Conti, what are they investing in?
Munis.
That’s the finding of Rick Fleming, the SEC’s top investor advocate, charged with analyzing how regulations might impact investors and their investments. Muni bond income, after all, is entirely exempt from federal and often state and local taxes – a feature that should appeal not just to money-saving HNWIs but to all investors.

This post was published at GoldSeek on 8 September 2016.