Gold and Silver Market Morning: Sep-29-2016 — Gold and silver hold at support!

Gold Today -New York closed at $1,322.90 yesterday after the previous close of $1,327.20. London opened at $1,321.65.
– The $: was weaker at $1.1223: 1 from $1.1201: 1 yesterday.
– The Dollar index was weaker at 95.45 from 95.63 yesterday.
– The Yen was weaker at 101.56: $1 up from 100.76: $1 yesterday against the dollar.
– The Yuan was weaker at 6.6734: $1 from 6.6708: $1 yesterday.
– The Pound Sterling was stronger at $1.3024: 1 from yesterday’s $1.2992: 1.
Yuan Gold Fix
New York and Shanghai were in line with each other but, once again London took gold prices down slightly despite the dollar proving a little weaker.
LBMA price setting: The LBMA gold price setting was at $1,320.85against yesterday’s $1,324.80.
The gold price in the euro was set at 1,177.39 against yesterday’s 1,181.33.
Ahead of the opening of New York the gold price was trading at $1,320.10 and in the euro at 1,176.45. At the same time, the silver price was trading again at $19.06.
Silver Today -The silver price rose slightly to $19.16 at New York’s close yesterday down from $19.14, Monday.

This post was published at GoldSeek on 29 September 2016.

Yellen Dodges Questions on Interest Rates and Political Motives

On Wednesday, Federal Reserve Chairwoman Janet Yellen testified before the House Financial Services Committee on financial regulation. The Fed Chair took criticism from both sides, with Democrats and Republicans criticizing the regulatory body for doing too much and for doing too little. Among the topics was the over-reach of Dodd-Frank, breaking up ‘too big to fail’ firms, and the recent Wells Fargo phony account scandal. However, one important topic side stepped was the impact of low interest rates on any of the problems brought up at the hearing.
The need for more bank regulation was championed by many Democratic representatives on the committee. Rep Stephen Lynch (D-Massachusetts) seemed to sum up the pro-regulation side of the argument, telling Yellen she should take a no-holds barred approach to banks like Wells Fargo. ‘Go after them. I’d like to see someone held accountable for that. Make their life hell,’ Lynch said.
A few members speculated on what motivated Wells Fargo employees and mangers; however, their assumption was simply greed, and the panacea was more regulation. No one took the more realistic position that banks were struggling not only with Dodd-Frank regulations, but with low revenues from artificially reduced interest rates, which, itself, is a form of regulation of the financial markets.

This post was published at Schiffgold on SEPTEMBER 29, 2016.

What to do when everything’s a bubble

Yesterday we talked about one small market in the US… but in fact there are dozens of cities across the world where property prices entering (or already in) a bubble.
San Francisco. Amsterdam. Stockholm.
Vancouver is infamous for its astonishing real estate bubble, which the government has tried to slow by slapping a nasty transfer tax on certain property transactions.
In London, prices are 15% higher than the previous real estate market peak in 2007. Yet income levels are 10% lower.
It’s the same in Hong Kong, Frankfurt, and a number of other major cities – real estate prices have surpassed their all-time highs, yet income growth is flat (or negative).
People in Denmark are particularly troubled – Danish home prices are well above their peak levels from 2006.
As a result, Danes have had to borrow extraordinary amounts of money in order to survive.
At more than three times disposable income, Danish household debt has set a new record among OECD nations.

This post was published at Sovereign Man on September 29, 2016.

Keiser Report: Invasion of Debt Snatchers (E 973)

The following video was published by RT on Sep 29, 2016
In this episode of the Keiser Report Max and Stacy discuss the Invasion of the debt snatchers as tech gets leveraged and mobile phone bills get collateralized. In the second half Max and Stacy continue their conversation with Karl Gray (@paradimeshift) about the cryptocurrency and blockchain investment space.

ECB Refused ‘To Answer Questions’ – Deutsche Bank ‘Systemic Threat’ Is ‘Not ECB Fault’

The potential collapse of Deutsche Bank and the systemic risk it poses to banks and the European financial and monetary system moved into the German political sphere yesterday. The German government denied it was preparing a rescue of the embattled bank and the Bundestag attempted to ask questions of ECB President Mario Draghi about the causes of the ‘systemic risks’ posed by the bank.
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The ECB president brazenly ‘refused to answer questions’ regarding Deutsche Bank during a closed-door meeting in the German parliament. Afterwords in conversation with journalists, he denied that the negative interest rates being imposed by the ECB are partly responsible for Deutsche Bank and the German financial system’s troubles.
However, many analysts rightly assert that zero interest rate policies (ZIRP) and now negative interest rate policies (NIRP) are a factor and partly contributing to the challenges facing banks in much of the western world. Not to mention causing bubbles in many property markets and indeed in stock and bond markets.

This post was published at Gold Core on September 29, 2016.

Wells Fargo Getting Clocked by California: What, No Perp-Walk?

No bank is ‘so powerful as to be untouchable.’ In July 2009, the immense State of California, the largest issuer of municipal bonds in the US, began paying its suppliers with fancy-looking interest-bearing IOUs because it had run out of real money.
They weren’t negotiable, and no one could use them to pay employees or suppliers. So Wells Fargo, headquartered in San Francisco, announced it would accept these IOUs from its business customers. It would pay them the principal in full and with some limitations the accrued interest. It took a risk: California’s default was a real possibility.
This is how Wells Fargo bailed out California during the Financial Crisis.
But now the fortunes have turned. The problems keep piling up for Wells Fargo, for its misdeeds committed in California. And the state is awash in moolah; its revenues are heavily influenced by capital gains taxes, and the stock market has been booming for over seven years (this is how the Fed’s asset bubbles bailed out California).

This post was published at Wolf Street on September 28, 2016.

Final Q2 GDP Comes At 1.4%: US Set To Grow At Slowest Pace Since Financial Crisis

While the second quarter is now ancient history and the debate is how much the predicted rebound in Q3 GDP will fade into Q4 which is set to begin in just three days, moments ago the BEA released its final revision for Q2 GDP, according to which real GDP increased 1.4% in the second quarter of 2016, 0.3 % higher than the ‘second’ estimate released in August, and fractionally higher than the 1.3% expected. In the first quarter, real GDP rose 0.8 percent.

As we have reported previously, the increase in real GDP was more than accounted for by an increase in consumer spending which amounted to more than 200% of the bottom line annualized GDP print. Spending on nondurable goods increased, notably on food and beverage grocery items. Spending on durable goods increased, notably on recreational goods and vehicles. And spending on services increased, notably on health care (thanks Obamacare) and on housing and utilities.

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

Pain Spreads To Germany’s Second Biggest Bank: Commerzbank Scraps Dividend, Fires 20% Of Workforce

With Deutsche Bank mercifully missing from overnight headlines for the first day in almost two weeks, it is time to bring attention to Germany’s second largest bank which, as we first reported earlier in the week citing a Handelsblatt leak, confirmed it is also going through a historic rough patch. This morning, Commerzbank said it plans a wide-ranging business restructuring that includes scrapping the bank’s dividend for the rest of the year, terminating nearly 10,000 jobs – roughly 20% of its workforce – and merging two large units.
‘The focus on the core business, with some business activities being discontinued, and the digitalization and automation of workflows will lead to staff reductions amounting to around 9,600 full-time positions,’ Germany’s second-largest lender said.
The plan, according to the WSJ, is a strong sign new Chief Executive Martin Zielke is determined to shrink the partially state-owned bank amid a protracted period of ultra-low or negative interest rates and weak client demand.

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

Post-February Uptrend In Stocks Being Tested

Key indices across the U. S. equity market are testing their uptrend lines stemming from the February lows.
It’s only fitting that today’s Chart Of The Day includes a trendline considering our regular ‘Trendline Wednesday’ feature on Twitter and Stocktwits (follow us on both platforms: @JLyonsFundMgmt). Granted, it’s not the most profound trendline we’ve ever monitored. However, it very well may be quite significant on an intermediate-term duration. Furthermore, as the subheading indicates, there are many other segments of the market presently being impacted by trendline dynamics similar to those illustrated in the example here.
So what are we looking at? The index is the broad NYSE Composite and the trendline is the uptrend defining the post-February rally. Specifically, the trendline originates at the February lows in the NYSE and connects the June Brexit lows as well as the early September lows. Why is this line so important? First of all, because it traces out the precise lower bound of the NYSE’s post-February rally. Secondly, the NYSE is presently testing the top of this line.
So is this line going to hold? In a vacuum, the assumption is always that a trendline should hold – until it doesn’t. Therefore, in this instance, the recent price weakness should be contained at these levels. Thus, if one is looking to ‘buy the dip’, this seems a reasonable spot to do so.

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

You Want to Fix the Economy? Then First Fix Healthcare

We don’t just deserve an affordable, sustainable healthcare system–we’re doomed to bankruptcy without one. What is blindingly obvious to employers but apparently invisible to the average zero-business-experience mainstream pundit is this: if you want to fix the economy, you must first fix healthcare. If you want to pinpoint a primary reason why U. S. enterprises shift jobs overseas, you have to start with skyrocketing healthcare costs. According to a report by the St. Louis Federal Reserve, real (adjusted for official inflation) wages have risen a mere 3% since 1970. (No wonder wage earners don’t feel wealthier; if we use a more realistic measure of inflation, we haven’t gained 3%–we’ve lost ground.) But if we look at total compensation costs paid by the employer (health insurance, workers’ compensation, employer’s share of Social Security, etc.) we find that these costs have soared 60%. In other words, if these labor overhead costs had remained stable (i.e. gone up only as much as inflation), employers could have distributed raises of 60%.

This post was published at Charles Hugh Smith on WEDNESDAY, SEPTEMBER 28, 2016.

These Are The Best And Worst U.S. Cities For Rising Home Prices

In its latest update looking at July home prices, Case Shiller pointed out that ” the housing sector continued to expand” at just around 5%, a pace that has held since early 2015.
Once again that was an understatement: in 15 of 20 of the tracked metro areas, the pace of home appreciation over the past year was 5% or higher, or more than twice the pace of core inflation. And with rents continuing to soar across the country, in many cases at a double digit clip, not to mention exploding healthcare costs, one wonders just what the BLS “measures” with its monthly CPI update.
In any case, for those lucky Americans who can afford to own a house instead of being stuck renting the New Normal American dream (where they are prohibited from peddling fiction as their annual rent increases by 10% or more each year), here is the breakdown of the top US cities with the highest and lowest home price appreciation.
At the top, with annual price increases of between 9% and 12%, we find the usual west coast (and thus closest to China) suspects for the second month: Portland, Seattle and Denver, with the cities closest to Vancouver not surprisingly continue to see the highest Y/Y growth. What is surprising is that what until recently was a superstar in this category, San Francisco, has seen its annual price increase drop to just 6.0% from 9.3% in February.
On the other end once again are Cleveland, Washington and, the worst performer of all, New York.

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

IRS Report Reveals How Obamacare “Spread [$11 Billion] Of Wealth Around”

If folks don’t like their healthcare then they can give us all their money so we can give it to other folks.
New IRS disclosures from the 2014 tax year reveal the specifics of how the so-called “Affordable Care Act” helped to facilitate Obama’s desire to, as he famously told “Joe the Plumber”, “spread the wealth around.” To be precise, in 2014, Obamacare spread $11.2BN of wealth around, in the form of healthcare premium tax credits, with nearly 80% going to taxpayers reporting less that $35,000 of adjusted gross income. Moreover, the average tax filer received $3,600 of healthcare premium support with those in the lowest tax bracket receiving over $5,500 per person.
Equally disturbing is the fact that 8.1mm tax filers, those who elected to forgo health insurance, were hit with $1.7BN in Obamacare penalties…call it the “young and healthy tax”. Ironically, 40% of the penalties fell upon people making less than $35,000 per year…the very same people that Obama apparently intended to “help”.

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

Trump Still Ahead

Despite the slew of announcements that Hillary was the victor of this week’s debate, the latest polls are still showing Trump ahead with 47% to Hillary’s 43%. Trump has come out to the criticism and said he will hit Hillary harder in the next round.
The foreign press (seite_1_tages-anzeiger_2016-09-28) supports Hillary, as does the local press. They may rig the election, which they clearly attempted to do in California. The stealing of votes from Bernie in California is a widespread investigation. Votes were not counted, and in other regions, they were switched to Hillary. We should expect more of the same this time at the Federal level.

This post was published at Armstrong Economics on Sep 29, 2016.

What a Trump win means for the Stock Markets? Disaster or Buying Opportunity

As a man handles his troubles during the day, so he goes to bed at night a General, Captain, or Private.
Edgar Watson Howe
We would like to state that this article is not about politics but about the effect these twopolarising individuals will have on the market. Before the debate, the outlook was somewhat favourable towards the Donald and immediately the markets reacted and started trending lower. Regardless of what you think of Trump, he is having the same effect as Brexit had on the markets but in smaller doses. If he should win the election, then the reaction will be several magnitudes larger. When the poll results came in stating that Hillary fared better in the 1st debates the markets responded positively and recouped their losses; this reinforces our argument of several years that sayssubstantial pullbacks should be viewed as buying opportunities.
From a contrarian angle (and not a political point of view) a Trump win could be construed as a positive development; non-contrarians will demand to know why? Mass Psychology clearly states that the masses are always on the wrong side of the equation. A Trump win will create uncertainty, and the lemmings will flee for the exits; markets will pull back sharply and viola the same old cycle will come into play. The cycle of selling based on fear which equates to opportunity for those who refuse to allow their emotions to do the talking.
Trump is the fear factor and Hillary the stability factor; if Hillary wins the markets will rally and then pull back; as the buy, the rumour sell the news effect will kick in. A Trump will create a strong reaction which in our opinion will create a buying opportunity. Sell when the masses are euphoric (a Hillary win) and buy when the masses are pessimistic (a Trump) is the core tenet of Mass Psychology

This post was published at GoldSeek on 29 September 2016.

“Ominous Shades Of 1987” – HSBC Shows Why 17,992 Is The World’s Most Important Number

With Saudi devaluation bets soaring, Chinese money-market rates popping, 2 debates and an election looming, and the most systemically dangerous bank in the world flashes the reddest of red warning signs, HSBC’s Murray Gunn’s conclusion bears paying attention to. Between wave-trending signals and disturbing technical trading patterns, Gunn warns of “ominous shades of 1987” for the markets.
The Dow Jones Industrials index has turned lower from a Head & Shoulders neckline re-test. A similar pattern occurred at this, often bearish, time of the year in 1987 before the index fell dramatically.

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

Goldman Says OPEC Deal May Add Up To $10 To Price Of Oil, Two Days After Cutting Oil Price Target By $7

Goldman has done it again. Two days after the central banker-incubator cut its year end price target from $50 to $43, admitting the previously anticipated rebalancing will take longer to achieve, and now expects “a global surplus of 400 kb/d in 4Q16 vs. a 300 kb/d draw previously”, and followed the next day by a report in which it said that not even an OPEC deal would stop oil going lower, overnight the very same analyst, just 24 hours after saying the opposite, Goldman’s Damien Courvalin said that the OPEC agreement will “likely provide support to prices, at least in the short term” and added that the announced production quota should boost the price of oil by $7/bbl – $10/bbl. Again: this is two days after cutting the 2016 price target by $7, and one day after saying an OPEC deal would have no impact.
Still, trying to avoid looking like a total flip-flopper, Courvalin adds that “at the historical average 4.8% production beat relative to quotas, this target would be 33.7 mb/d, above current production levels. It has historically taken a fall in oil demand to ensure quota compliance, as in that case, production is forced lower by a decline in refinery intake around the world. This is not the case today with resilient demand growth” and said that “we maintain our year-end $43/bbl and 2017 $53/bbl WTI price forecasts given: (1) uncertainty on this proposal until it is ratified, (2) likely quota beats if ratified, (3) potential for production above our cautious forecasts in areas of disruptions (as was the case today in Libya and KRG), and (4) our conservative supply forecasts outside of OPEC for next year.”
Then again, the only thing that will be stuck in algos’ random access memory is that Goldman now expects oil to rebound by up to $10/bbl, which may explain why oil is now rolling over.

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

George Osborne says the Bank of England’s quantitative easing makes the rich richer

The former chancellor, George Osborne, has said that money printing by the Bank of England has made the rich richer and that interest rate cuts have hurt savers.
Speaking from Washington in an interview with Bloomberg TV, Mr Osborne said: ‘We need to offset the very necessary loose monetary policy and the distributional consequences that it is having. Essentially it makes the rich richer and makes life difficult for ordinary savers.’
‘There’s a role for government policy not in stopping that monetary policy which keeps the economy strong but in mitigating its impact. I think all of us who believe in free markets need to work harder to find an answer to the anger that people clearly feel out there.’
As chancellor Mr Osborne never commented on the distributional consequences of the Bank of England’s monetary stimulus measures.

This post was published at The Independent

How Much Money Have Humans Created – A Visual History

The dollar amounts are so staggering, that simply telling you how much money humans have created probably wouldn’t convey the magnitude. However, The Money Project’s data visualization in this video, allows us to relate numbers in the millions, billions, and trillions to create the context to make it more understandable.
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Starting With Context The median U. S. household income of $54,000 is a number that most people can relate to. It’s enough money to save up to buy a car, or maybe even a house depending on where you live.
Multiply that income by eight, and that number is now big enough to count as being in the top 1% of earners. People in the ‘one percent’ make at least $430,000 per year.

This post was published at Zero Hedge on Sep 28, 2016.