Terrorism In The Form of Arson — The American Left

From the NC GOP:
RALEIGH, NC – A North Carolina Republican Party office in Orange County was firebombed overnight, causing major damage and destruction. Thankfully, there was no loss of life.
The explosive device was thrown through the window of the office, and the words, ‘Nazi Republicans, leave town or else,’ were painted on a nearby building. The news comes less than 25 days before Election Day, as dedicated NCGOP volunteers and activists are canvassing the state and spending long hours getting out the vote and exercising their rights in a free and open democratic society.
Let me guess — the Democrats will claim this was a Russian arsonist?
I think not

This post was published at Market-Ticker on 2016-10-16.

5 Financial Charts On the Move

If you watch financial news or read any of the major business newspapers, you know charts get thrown around fast. A lot of them are noise. Some of them are not. That’s why we want to begin offering you a breakdown of the charts and graphs we are keeping an eye on.
As there is more online than ever before, it’s possible for an information overload.
We want to begin bringing you 5 charts to cap off each week, along with the occasional fun add ins. These graphs will be brief in description and give you the ability to take on the news, make your own decisions and know exactly what to watch for in the future.
Let’s get the chart lines rolling…

This post was published at Wall Street Examiner by Craig Wilson ‘ October 15, 2016.

THE WORLD WILL RETURN TO GOLD — Doug Casey

The following video was published by SGTreport.com on Oct 16, 2016
International man Doug Casey from Casey Research joins me to discuss the sorry state of our completely corrupt government and how the mainstream media is colluding to prop up Hillary Clinton. We also discuss the recent mining stocks correction – and gold, which Doug says the world will return to after the coming collapse., a collapse which will be so brutal that Americans may soon find themselves living like Venezuelans are now.

The Fed, Like The BOJ, Is Now In The Curve Steepening Business: What That Means For Markets

Following Janet Yellen’s strange speech from Friday, titled “The Elusive ‘Great’ Recovery” in which a seemingly perturbed Yellen not only admitted that the Fed may have hit peak confusion and that 7 years after unleashing a global, multi-trillion asset reflation experiment, it has not only failed to reflate non-market assets (at least both bonds and stocks are near all time highs on central bank buying), but in which the Fed chair also admitted the Fed is not even sure it understands the phenomenon of inflation any more, and in which Yellen’s reference to stoking a “high-pressure economy” and the lack of a mention of raising interest rates (coupled with her suggestion that the Fed ‘may want to aim at being more accommodative’ during recoveries) was initially seen as a dovish sign, the just as confused market first rose, then fell after it reintrepreted her comments not so much as dovish, but as refering “financial stability”, something that Eric Rosengren explained earlier on Friday refers to steepening the yield curve, which in effect is a tapering of long-end purchases, or – as we first dubbed it when previewing the BOJ’s similar operation – a reverse Operation Twist.
The result was a prompt jump in 10Y and 30Y TSY yields to session highs on Friday after Yellen’s speech discussing ‘plausible ways’ to reverse adverse supply-side effects by temporarily running a ‘high-pressure economy’, but more importantly the 5s30s steepened. Indeed, the selloff in long end saw 30Y yields rise by more than 7bp, topping 2.55% for 1st time since June 23 Brexit vote, the 10Y yield was higher by 5bp at 1.791%, above closing levels since June 2, while the short end barely budged.

This post was published at Zero Hedge on Oct 16, 2016.

Tinfoil: It’s Getting Harder To Leave Home Without It

It used to be when someone mentioned the term ‘tinfoil cap wearing,’ ‘conspiracy theorist,’ ‘lunatic fringe,’ etc, etc., it was usually in reference to a subset of individuals or groups that resided in some dark corners or basements believing ‘mind control’ went far beyond just propaganda. i.e., It was actually the government (or aliens!) sending out undetectable frequencies directly into the minds of the masses. And, the only protection was: tinfoil. With it’s best use fashioned and adorned as a cap. It’s been a running joke (as it should be) longer than most can remember.
Yet, with all that said, it’s getting harder to be out amongst the public as an informed person and not feel as if there isn’t something to all the ‘lunacy.’ For if you speak to nearly anyone these days be it family, friends, coworkers, or the occasional overheard conversations of strangers. You can’t help wondering: how can so many be so clueless? Or worse: how is it they can argue some form of righteous stance about this, or that, all the while they are ‘knee-deep’ themselves in the same (if not worse) muck they say is being slung from the other side?
It’s moved so far beyond ridiculous I’m now starting to believe there is something in the water. However, is it in the tap or, is it in the bottled? For the people able to afford bottled, as opposed to plain tap, seem to have some of the more ‘crazy’ arguments I’ve heard in quite some time. And that’s saying something. It’s the only thing that explains it.

This post was published at Zero Hedge on Oct 16, 2016.

QE/ZIRP Is Crushing the Global Supply Chain, Product Quality and Profits

We will soon wish we were allowed an honest business cycle recession once the current overcapacity implodes the global economy.
We all know the quality of many globally sourced products has nosedived in the past few years. I addressed this in Inflation Hidden in Plain Sight (August 2, 2016): not only is inflation (i.e. getting less quantity for your money compared to a few years ago) visible in shrinking packages, it’s present but largely invisible in declining quality.
When products fail in a matter of months, we’re definitely getting less for our money, as what we’re buying is a product cycle, not just the product itself. We buy a product expecting it to last a certain number of years, and when it fails in a matter of weeks or months, this failure amounts to theft and/or fraud.
When a costly repair is required in a relatively new product, we’re getting less for our money, and when the repair itself fails (often as a result of a sub-$10 or even sub-$1 part), we end up paying twice for the inferior product.
Why has the quality globally sourced products nosedived? The obvious response is corner-cutting to lower costs to maintain profit margins, but this simply poses the next question: what’s changed in the past eight years that’s made corner-cutting essential to maintaining profit margins?
The answer may surprise you: central bank stimulus: QE (quantitative easing) and ZIRP (zero interest rate policy. Gordon Long and I discuss this dynamic in Bankers Crippling the Global Supply Chain (34:50).

This post was published at Charles Hugh Smith on OCTOBER 16, 2016.

Gold Stocks Corrections in Bull Markets

The gold stocks are clearly in correction mode. The large caps (HUI, GDX) have corrected 30% while the juniors (GDXJ) have held up well in comparison by correcting the same amount. Given a number of factors (the size of the previous advance, the recent technical damage, stronger US$ index and rising yields) the gold stocks should continue to correct and consolidate in a larger sense. To gauge a potential path forward we present a new analog chart and compare the current correction to those from past markets.
The chart below plots the current correction in the HUI index in comparison to the corrections in 2001, 2002 and 2006. Each correction followed very strong advances. The 2001 and 2002 periods are the best comparison to today. The recent rebound originated from a potential secular low (like 2001) and lasted six to seven months (like 2001). However, the rebound was much stronger than in 2001 and reached an extreme overbought point (like 2002). The HUI has already corrected 31%, which is much closer to the 2002 correction. Only time will tell how long the correction lasts but my view is it is more likely to last around six months than the 10 months seen in 2002.

This post was published at GoldSeek on 14 October 2016.

Inflation Is About To Spike Due To The “Base Effect”

This past May we explained that one of the officially stated reasons why the Fed had delayed hiking rates (a situation that remains unchanged some 5 months later) is because CPI inflation in late 2015 and early 2016 had been lower than the Fed’s bogey. And, based at least on the CPI’s basket weighing of headline input prices, the Fed may have been right: the main reason for this is that tumbling energy prices kept gas prices at the pump in check, which because it is one of the primary drivers of Headline CPI, kept inflation subdued.
Needless to say, following the early 2016 market rout, which was the functional tightening equivalent of three rate hikes, Yellen was happy that inflation was low enough to let her get away without a rate hike so far this year. However, as we pointed out nearly six months ago, as we approach the anniversary of last year’s oil – and gasoline – price lows and the “base-effect” kicks in, the recent pick up in gas prices is set to have an even sharper upward impact on the Consumer Price Inflation basket. It will also wreak havoc on the Fed’s strategy of playing possum and not hiking as long as inflation remained “stubbornly low” because suddenly inflation will be the highest it has been in years.

This post was published at Zero Hedge on Oct 16, 2016.

Anthem!

The other week I was driving in downtown Los Angeles, late for an appointment. The road I needed to turn onto was just past the freeway overpass, but I got confused and turned onto the freeway on-ramp. My GPS app promptly started recalculating my route and informed me that for all practical purposes I could no longer reach my destination. I was basically trapped on the freeway, and just getting back to my starting position would take at least 20 minutes, probably more.
Now this is probably because I’ve played way too many video games in my life, but here’s the thought that popped into my head: no problem, let’s just hit the reset button. I’m not sure when I last saved the game, but it’s gotta be better than what I’m faced with now. Shoot, with the way autosave works these days, I bet I restart really close to my idiotic mistake to take the onramp. These were the thoughts I couldn’t shake for the next 20 minutes. And these are the thoughts that I can’t shake today.
It’s time for a reset.
I’m not talking about this misbegotten election. Both parties took the wrong on-ramp, and like my LA misadventure, there’s no way to walk (or drive) this back. At least I only lost 20 minutes of my life and missed an appointment. We’re going to lose four years of our political lives with this election, and the alienation that each and every citizen feels with his or her government … the alienation that each and every investor feels with this market … is just going to get worse, regardless of who wins.

This post was published at FinancialSense on 10/14/2016.

Biggest Nuclear Boondoggle Ever: Taxpayers, Pull out Your Wallet, Costs Exploded Again

How the Nuclear Energy Lobby Eats up Global Taxpayer Billions
The well-funded lobbyists of the powerful nuclear energy industry are tirelessly working over governments around the world. Occasionally, there are minor setbacks, such as Fukushima or the current multi-billion-dollar scandal around the decommissioning costs of California’s San Onofre nuclear power plant, that threaten to expose just how horridly expensive nuclear power really is for taxpayers, ratepayers, and other stakeholders, from conception of the plant to final decommissioning and proper disposal of nuclear waste and contaminated materials – none of which has yet been accomplished and paid for.
But here’s the project that was first conceived in 1985, is still far from completion, and has now thrown back the date of first power generation to 2035, if it can ever be accomplished, and there are grave doubts it can.
The hoped-for experimental power generator would be a capacity of a measly 500 megawatts, or about the capacity of 62 top-notch wind turbines, generating electricity in places like West Texas and the Oklahoma Panhandle. A farmer can put up a few of those on his fields for extra income. At an installed cost of about $1.5 million per MW capacity, a utility-scale project of that size might cost $750 million. And the wind is free.

This post was published at Wolf Street by Wolf Richter ‘ October 15, 2016.

“The System Simply Isn’t Working” – Hugh Hendry Warns Of 1930s-Style “Dramatic Fulcrum Point” In Europe

Having warned in Q1 of the possibility of a China-devaluation-driven collapse in to a “Mad Max” world, Eclectica’s Hugh Hendry lays out the next steps and catalysts for ‘change’…
Via ValueWalk.com,
We believe we are approaching a dramatic fulcrum point in public opinion in Europe which could deliver another bout of outsized positive returns from a unique Eclectica trade.
Since the Brexit referendum we have been developing our thoughts about what the Leave vote might mean, not just for the UK, but for the European project as a whole. And our main conclusion is that by doing the unthinkable and actually voting to leave, Brexit substantially increases the likelihood that other members of the European Union will also seek to break away. Remember, just two years after the UK similarly rejected the gold standard back in 1931 there were just 12 remaining members versus the 45 that had previously been committed. And the so far robust performance of the UK economy since the vote will do little to dissuade others from following suit.
So we have the precedent from a much earlier time (the 1930s) when the defection of just one member from a currency union caused the system to unwind rapidly. And we can clearly sense the seeds of another popular political revolt in other member countries; a flurry of upcoming elections and referendums provides an immediate catalyst.

This post was published at Zero Hedge on Oct 16, 2016.

Gold Technicals

This video discusses a number of technical considerations that affirm the correction in metals is about over. Also discussed are the potential price targets for both gold and the mining index by mid-2017.


This post was published at GoldSeek on 16 October 2016.

The End Of Growth’s “Fake Elixir”

Raul Ilargi Meijer, the long-standing economics commentator, has written both succinctly – and provocatively: ‘It’s over! The entire model our societies have been based on for at least as long as we ourselves have lived, is over! That’s why there’s Trump.
‘There is no growth. There hasn’t been any real growth for years. All there is left are empty hollow sunshiny S&P stock market numbers propped up with ultra-cheap debt and buybacks, and employment figures that hide untold millions hiding from the labor force. And most of all there’s debt, public as well as private, that has served to keep an illusion of growth alive and now increasingly no longer can. ‘These false growth numbers have one purpose only: for the public to keep the incumbent powers that be in their plush seats. But they could always ever only pull the curtain of Oz [Wizard of Oz] over people’s eyes for so long, and it’s no longer so long.
‘That’s what the ascent of Trump means, and Brexit, Le Pen, and all the others. It’s over. What has driven us for all our lives has lost both its direction and its energy.’

This post was published at Zero Hedge on Oct 16, 2016.

Saudi Bank Stocks Tumble As Bailout Fails To Stem Liquidity Stress

Saudi bank stocks’ dead-cat-bounce – following the central bank’s cash injection ‘bailout – is dying once again asBloomberg reports funding pressures remain in The Kingdom’s financial system.
The interest rate banks charge one another for loans rose by the most since August on Sunday, extending a trend that’s slowing earnings and corporate borrowing in the world’s biggest oil exporter. The increase is defying the central bank, which has sought to ease the cash crunch by relaxing lending limits, offering new borrowing facilities and injecting funds into the financial system, including 20 billion riyals ($5.3 billion) pledged Sept. 25.

This post was published at Zero Hedge on Oct 16, 2016.

Will The S&P Drop 22% In The Next 3 Months?

S&P 1650, December 31st We see the SPX losing 22% over the next 2-3 months. The call is primarily based on technical factors; however, given the market’s current valuation, the fundamentals also support this view. We contend that the texture of today’s price action is very similar to the early 2000’s, as illustrated below.

This post was published at Zero Hedge on Oct 16, 2016.

Latest Wiki Dump Reveals Heavy Press Collusion Over Hillary’s “Excellent Health” Medical Statement

Among the latest, ninth round of Podesta email releases by Wikileaks this morning, is a July 31, 2015 email by Hillary Clinton’s National Press Secretary Brian Fallon who lays out the agenda for the day’s rollout of Clinton’s tax record and, more importantly, Hillary’s “excellent health” medical statement, where once again the media, listed as “AP, Politico, WSJ, WaPo, etc” is exposed as coordinating and colluding with the campaign to send a message that Hillary is in great health.
In the email written in the early hours on Friday, Fallon writes that in the “rollout plan” for that same day, the campaign will “Pitch the first round of stories to the travelling press corps (AP, Politico, WSJ, WaPo, etc) with a 2 pm embargo.”
He goes on to say that for these stories “we will provide the full text of HRC’s physician’s letter, summarizing that she is in excellent health and is medically fit to perform the duties of President. We will push that she is the FIRST presidential candidate to release this info.”
In further evidence of the prepared media narrative, Fallon points out that “we expect the stories that pop at 2 pm to have headlines such as ‘CLINTON IN ‘EXCELLENT HEALTH,’ MEDICAL RECORDS SAY’ … ‘CLINTON RELEASES HEALTH REPORT.”

Fallon also plans how to approach the “friendly” press in an attempt to “one-up” Jeb Bush, who at the time was seen as her biggest challenger, in terms of financial disclosures, and specifically her tax filings.

This post was published at Zero Hedge on Oct 16, 2016.

Apparent Blatant CRIMINAL Hillary

Where are the damned handcuffs?
***
And by the way, the conclusion apparently reached in this email chain? Take the money.
This is what the FEC has to say about such things:
The Federal Election Campaign Act (FECA) prohibits any foreign national from contributing, donating or spending funds in connection with any federal, state, or local election in the United States, either directly or indirectly. It is also unlawful to help foreign nationals violate that ban or to solicit, receive or accept contributions or donations from them. Persons who knowingly and willfully engage in these activities may be subject to fines and/or imprisonment.

This post was published at Market-Ticker on 2016-10-16.

The (Dollar) Straw That Breaks The Camel’s Back Of Political Correctness

One year ago we showed the following chart to explain the relative strong dollar that was on everyone’s mind at the time. With a second leg higher in the US dollar imminent, this particular chart will be more important than ever. Claims to dollars, such as demand and time deposits, or even more opaque money-like products created by the shadow banking system is just that, a claim or derivative on the final mean of payment, namely base money. When trust breaks down and owners of dollar claims rush to exchange them for actual dollars, the price of dollars goes up in relation to goods and services because there are not enough dollars to satisfy all the claims outstanding.
In monetary terms deflation takes hold and there are no market mechanism that can clear this anomaly (because it was never a proper market to begin with) as the price of the underlying and the derivative will move in perfect proportion to each other. Enter the Federal Reserve with their QE programs, id est base money creation, to meet dollar demand and stem the ensuing panic.
Unfortunately, something even more sinister has been going on with dollar derivatives internationally. In addition to domestic claims to dollars, there are a massive market for dollars internationally called Eurodollars. Foreign banks, particularly European banks, help global investors, merchants, exporters and importers trade and settle in USD, with very few actual dollars present. As long as everybody trust each other, this highly efficient system can operate smoothly with a high degree of leverage. Money market funds and filthy rich commodity exporters have a long tradition for placing their money in these markets allowing the financial system to benefit greatly.

This post was published at Zero Hedge on Oct 16, 2016.