The US Economy Is Now In A Recession And Teetering On A Full Blown Collapse – Episode 1104a

The following video was published by X22Report on Oct 18, 2016
The auto industry is no idle and manufacture is now declining rapidly. IBM revenue and sales continually drops. Industrial production is signalling a recession. Which means the country has been a recession and we are moving towards a collapse of the economy. Deutsche Bank pays a fine for manipulating the silver market. The creator of the EU is letting the world know that the EU is collapsing and will not survive.

Five Main Things To Watch In Today’s Chinese GDP Report

There is one simple reason why when the Chinese Q3 GDP print is revealed shortly, it will be an utterly meaningless indicator – the number, as not only traders but the general public know, is a goalseeked, arbitrary political construct meant to convey not information about the economy, but – at best – about Beijing’s intentions what it may or may not do in the future regarding future monetary or fiscal (which as we showed just hit an all time high) stimulus.
In fact, as Evercore ISI said in the company’s latest look at China, “China’s Real GDP data is opaque; Nearly invariant at 7 – 7.5%; No real, nominal, deflator detail; no income-expenditure cross check, etc. No data pros will answer questions.” In short: it is useless. An alternative, and much more informative index created by ISI, is shown by the red line in the chart below – unlike the blue line, or China’s official GDP data, it reflect the real twists and turns in China’s economy.

This post was published at Zero Hedge on Oct 18, 2016.


The following video was published by on Oct 18, 2016
Bix Weir from joins FinanceAndLiberty to give an update on the precious metals market. Weir says the markets are 100% rigged. He predicts physical silver shortages to appear soon since the artificially low prices will cause demand to outstrip supply. He also predicts the price manipulation is coming to an end and reveals why.

Shadow Banks, No-Down-Payment Subprime Mortgages in Canada’s House Price Bubble

‘The pundits have been raising red flags on the Canadian housing market for more than five years – and have been consistently wrong,’ former Royal Bank of Canada CEO Gord Nixon told BNN today, in response to the federal government’s new mortgage rules designed to tamp down on risk in the housing market:
‘I appreciate why policymakers have been moving in the direction they have been moving but we have yet to have – and I don’t believe we are going to have – a major, major collapse in housing.’
Comforting words.
It is always been said that the Canadian housing bubble cannot implode in the manner the US housing bubble did because mortgages are more conservative, because subprime doesn’t exist, because down-payment requirements are stiff…. And now there are new mortgage rules to make it even harder.
But there are ways and means of getting around the new mortgage rules and other requirements to get what you want in Canada’s delicious housing bubble. And in some cases: no down-payment, no problem.
The new policies – covering mortgages that qualify for the government-guarantee program and the lower rates that come with it – elicited pronouncements of being everything from ‘somewhat overdue,’ from Toronto Dominion Bank chief Ed Clark, to ‘premature,’ from Gary Mauris, president and CEO of Dominion Lending Centres.

This post was published at Wolf Street by Angela Johnson ‘ October 18, 2016.

Silver Eagle Demand Returns With A Vengeance As Political & Economic Turmoil Increases

U. S. Mint Silver Eagle sales surged in the first half of October due to increased turmoil in the political system and economic markets. Silver Eagle sales were strong in the first five months of the year, but weakened in the summer due to several factors.
One factor was the fall-off in demand by the Authorized Dealers (wholesalers) who had continued to purchase record Silver Eagles in the first part of 2016, even though retail investor demand had softened.. The other factor was a weakening of investor demand as the contagion from the U. K exit of the European Union subsided in the summer.
Regardless, U. S. Mint Silver Eagle sales came back with a vengeance in the first half of October, reaching 2,925,000 according to their most recent update today (Oct 18th). If we look at the chart below, we can see how much demand has increased compared the previous three months:

This post was published at SRSrocco Report on October 18, 2016.

Gold Daily and Silver Weekly Charts – We Come In Peace

“The wealth of another region excites their greed; and if it is weak, their lust for power as well. Nothing from the rising to the setting of the sun is enough for them. Among all others only they are compelled to attack the poor as well as the rich. Robbery, rape, and slaughter they falsely call empire; and where they make a desert, they call it peace.”
Tacitus, Agricola
“When the rich wage war, it is the poor who die.”
Jean-Paul Sartre, The Devil and the Good Lord
Gold and silver look to be ‘pegged’ around these levels for now.
There was little clearing activity yesterday on the Comex, and the warehouses were a snooze as well.
The dollar lost a bit today, but regained it back.
Gold and silver are chopping sideways now, as can easily be seen on the chart.

This post was published at Jesses Crossroads Cafe on 18 OCTOBER 2016.

Oil’s Biggest Threat: Demand to Peak Within 15 Years

For more than two years the oil industry has suffered through its worst down cycle since the 1980s, and relief may not come until the middle of 2017 at the earliest. Some argue that oil prices may take even longer before they rebound. But while oil executives are focusing on the next few years, a much bigger threat looms over the long-term: Peak oil demand.
A new report from the World Energy Council predicts that global demand for crude oil could hit a peak in 2030 at 103 million barrels per day. The scenario would require rapid and substantial advancements in electric vehicles, efficiency, renewable energy, and digital technologies – developments that are no longer difficult to imagine. Additionally, the report envisions a scenario in which global primary energy demand – which includes energy demand for everything including transportation and electricity – could also peak before 2030.
These conclusions fly in the face of the prevailing assumptions within the oil and gas industry, which assumes consistent and stable growth in demand for decades to come. The oil market has always gone through cycles, in which demand spikes or flattens out. The cyclical nature has overwhelmingly been due to the changing nature of global or regional economic growth. But while demand has always been a bit volatile in the short-term, oil demand has grown inexorably for more than a century as population and GDP expand. Recessions hit demand, but once economies recover, demand resumes its upward trajectory. This constant, almost a law of nature, makes it difficult for many to picture a structural, rather than just a cyclical, decline in oil demand. But many analysts, including the WEC, say that such a development is underway.

This post was published at FinancialSense on 10/18/2016.

From ‘Socialist Utopia’ To ‘Silence Of The Lambs’ – Venezuela’s Overcrowded Prisons Devolve Into Cannibalism

Once a flagship socialist nation, Venezuela has now devolved into complete chaos as declining oil revenue has resulted in economic ruin, massive inflation, food shortages and spikes in violent crime. The increasing criminal activity has led to massive overcrowding of Venezuelan jails where felons have been forced to live in squalid conditions.
According to the Independent, one such overcrowded facility was Tchira Detention Center where 350 inmates were housed despite the facility’s capacity for only 120 people. Earlier this month, the adverse living conditions, including insufficient rations for inmates, at the facility resulted in riots that devolved into complete chaos as numerous visitors were taken hostage and 2 inmates were “stabbed, hanged to bleed, and then fed to the detainees.” The gruesome event was orchestrated by a man named Dorancel Vargas (aka “People Eater) who was jailed in 1999 for cannibalism.

This post was published at Zero Hedge on Oct 18, 2016.

Iceland Today, the US Tomorrow?

During the 2008 economic crisis, Iceland’s government froze offshore accounts held by foreign investors in that country’s currency, the krona. Recently, the government of Iceland announced it would unfreeze the accounts if the account holders paid a voluntary ‘departure tax,’ which could be as high as 58 percent. Investors who choose not to pay the departure tax would have their investment ‘segregated’ into special funds that only invest in CDs issued by Iceland’s central bank. These CDs are expected to only provide a rate of return of at most 0.5 percent a year. So investors in offshore accounts can thus choose between having their money directly seized via the departure tax or indirectly seized via the inflation tax.
Iceland’s freezing of offshore krona accounts was part of a ‘stabilization and recovery’ program implemented under the guidance of the International Monetary Fund (IMF), which also provided Iceland with a $1 billion loan. So US taxpayers not only helped the IMF bail out Iceland’s government, they may have helped the IMF advise Iceland on how best to steal property from American investors!
The IMF’s role in Iceland’s seizure of the property of foreign investors shows the hypocrisy of IMF officials, who recently expressed concerns about the increasing support for protectionism supposedly exemplified by the Brexit vote. However, freezing of assets held by foreign investors is a particularly harmful form of protectionism, while Brexit was more about rejecting the European Union’s bureaucracy than rejecting free trade. Perhaps what the IMF and its supporters are really worried about is losing their power to use taxpayers’ money to force other countries to adopt IMF bureaucrats’ favored economic policies.

This post was published at Ludwig von Mises Institute on Oct 18, 2016.

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US Paper

One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion, the lowest since 2012. One month later, we refresh this chart and find that in the latest weekly update, foreign central banks continued their relentless liquidation of US paper held in the Fed’s custody account, which tumbled by another $22.3 billion in the past week, pushing the total amount of custodial paper to $2.805 trillion, another fresh post-2012 low.

This post was published at Zero Hedge on Oct 18, 2016.


Gold $1260.80 UP $6.40
Silver 17.59 UP 16 cents
In the access market 5:15 pm
Gold: 1262.50
Silver: 17.63
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix OCT 18 (10:15 pm est last night): $ 1265.29
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1264.67
London Fix: OCT 18: 5:30 am est: $1261.65 (NY: same time: $1261.60: 5:30AM)
London Second fix OCT 14: 10 am est: $1258.20 (NY same time: $1258.20 , 10 AM)
Shanghai premium in silver over NY: 87 cents.
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

This post was published at Harvey Organ Blog on October 18, 2016.

The ECB Made A Mistake During Its Daily Bond Purchases

Something unexpected happened when the ECB released its latest bond purchase data at during its scheduled release time on Monday: in addition to the purchase of at least 20 separate corporate bonds under the bank’s CSPP bond buying program during the week ended October 14, amounting to a total of 1.84 billion, which lifted the number of securities held by the central bank to 660, bringing the total to amount of its holdings to 33.8 billion, or 7.1% of the 476 billion outstanding for these issues, the ECB actually sold one bond.
This is notable, because the first P in CSPP stands for Purchase not Punt. Nowhere is there a discussion of selling, and yet that’s precisely what the ECB did – as Bloomberg noted earlier today, CUSIP FR0010955559 AKEFP 4% 10/2017 was no longer on the list of most recent ECB holdings. Why?
It turns out that in its buying frenzy, the ECB made a mistake, and according to an explanation provided by an ECB representative, the ECB had to sell a short dated Arkema bond last week it had bought some three weeks ago as it wasn’t eligible under the corporate bond buying program.

This post was published at Zero Hedge on Oct 18, 2016.

Leaked Emails Prove That A Shadow Gov Rules: Hillary Aims to ‘Make Soros Happy’

If any doubts remain that George Soros is a string-pulling puppeteer who is undermining our constitutional form of government, then here is direct proof that Hillary Clinton, one of the most powerful and corrupt members of the establishment, absolutely hops-to when Soros makes requests.
Democracy That George Soros Can Believe In
A fresh pile of Wikileaks documents gives fuel to the fire that Soros, the ‘change agent’ extraordinaire, is not only ordering State Dept.-backed regime change in the most contentious parts of the world, but that he is injecting cash into a basket of (deplorable) organizations designed to hijack the country, and keep a corrupt Democrat – like Hillary – in power for eight more years.
Among other documents are those that show high level Clinton aides bent over backwards to accommodate pet projects and political issues favored by billionaire George Soros, (and, of course, other ‘Friends of Bill’ pals and Clinton Foundation donors that they hooked up).
As Mikael Thalen writes:

This post was published at shtfplan on October 18th, 2016.

China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

Overnight the PBOC reported its debt statistics for the month of September and it will probably not come as a surprise that for yet another month, China flooded its economy with the latest massive new loan injection, while the country’s broadest aggregate measure of new credit, Total Social Financing, again surpassed estimates with the number exceeding a quarter trillion dollars in total new debt, in order to fuel, what Bloomberg dubbed, “the economy’s continued stabilization”, even though the economy is inherently unstable due to the massive stock of debt already present inside China’s financial system.
To summarize, this is what China’s credit creation looked like in September:

This post was published at Zero Hedge on Oct 18, 2016.