It’s All About COMEX

Why do gold and silver prices top overnight and come into New York cash market down significantly off the highs almost every day? Answer: The futures market that trades 24-hours a day, populated by the big gamblers and hedge funds that have the most profound effect in driving prices of all factors. These people place their bets and takes their chances and all physical market investors are taken along for the ride – good or bad. Unfortunately since 2011 it’s been all bad for the most part because the consensus of this group is always bullish, removing any kind of ‘worry wall’ (think short squeeze) to climb. And the same thing can be said about the ETF and share markets as well. Instead of buying bullion or shares, the gamblers prefer calls on leveraged ETF’s or the shares because they think they can ‘make more’ by doing so, sabotaging both their own outcome and that of conservative long-term investors who must suffer such volatile markets because of these greedy idiots.
And the thing is, this will not change until this negative behavior that’s repeated every day changes, which will not happen easily, with collapsing prices likely the only cure. In the meantime, the totality of the buffoonery has turned the precious metal markets into the biggest clusterf*ck of all times, becoming increasingly detached from fundamentals as credit markets were allowed to grow (because precious metals are still traded against as barometers by status quo opportunities), increasingly becoming ‘doomsday’ in nature. (i.e. because when the next credit contraction arrives it will collapse the economy.) So again, this is why Wall Street machines are able to slap down precious metals overnight and keep them down during the day via ETF gamblers, because the machines grind the greedy bastards up time and time again, as documented on these pages for some 10-years now, beginning back in 2007 when I warned how this phenomenon would tank the broad markets at the time.
But people don’t want to hear (and especially not read about it because that’s work) about this kind of warning because it doesn’t fit with their little self-centered view of the world, so they ignore them. And it’s this dynamic that keeps the gambling knuckleheads in precious metal derivatives markets coming back for more, this, and the fact most of the gamblers aren’t even exercising their addictions with their own money, but yours, if you are dumb enough to be a voluntary structured money investor of any kind. (i.e. because all markets are tied together these days via derivatives / debt exposures.) And it’s this dynamic (stupidity, greed, and laziness) that keep people listening to pod casters who talk ‘pie in the sky’ about precious metals, and that Chinese goat traders (what’s a goat trader?) will be going on the internet some time later this year to buy Bitcoin even though they don’t even own a computer.

This post was published at GoldSeek on 23 January 2017.

POLITICAL AGITATOR: Globalist George Soros Linked to Over 50 ‘Partners’ of the Women’s March on Washington

21st Century Wire says…
More than 50 NGO ‘partners’ of the Women’s March on Washington were found to be tied to social movement financier George Soros. While the DC gathering was billed as a grassroots movement for women’s rights in America, it was anything but as a string of multi-million dollar Democratic Party-affiliated NGO’s organized what was clearly an anti-Donald Trump event following the US presidential inauguration this past week.

This post was published at 21st Century Wire on JANUARY 23, 2017.


Raise your hand if you’re surprised that someone has already found a way to sue President Trump.
Anybody? Hello? (taps microphone) Is this thing on?
Citizens for Responsibility and Ethics in Washington (CREW) is the group behind the legal action.
They’re filing a suit alleging that the president is violating a constitutional ban on accepting payments from foreign governments.
What? He’s taking bribes?
The ridiculous reason why he’s being sued.
A group of ‘prominent scholars’ has taken umbrage that a hotelier and real estate mogul has foreign guests staying at his hotels and leasing apartments and offices in buildings he owns. The horror.
How very shocking.
From the New York Times:

This post was published at The Daily Sheeple on JANUARY 23, 2017.

Big Shrink to ‘Hire’ 25,000 in the US, as Layoffs Pile Up

IBM is in trouble and desperate hype is apparently required.
The last thing IBM needs is ending up on the receiving end of a Presidential tweet. So, to forestall this event, it announced in December that it would ‘hire’ 25,000 workers in the US. But current and already laid-off workers are now pooh-poohing this promise.
IBM is in trouble. Revenues in the fourth quarter fell to $21.8 billion, the 19th quarter in a row of year-over-year declines, IBM reported last week. Annual revenues fell 2% in 2016, the fifth year in a row of declines that none of the executive hype has managed to stem. These annual revenue declines add up. In 2016, revenues were down 25% from the peak in 2011:

This post was published at Wolf Street on Jan 23, 2017.

The World Is Awash In Bullshit

This is really the best paragraph I have read so far in 2017:
The world is awash in bullshit. Politicians are unconstrained by facts. Science is conducted by press release. So-called higher education often rewards bullshit over analytic thought. Startup culture has elevated bullshit to high art. Advertisers wink conspiratorially and invite us to join them in seeing through all the bullshit, then take advantage of our lowered guard to bombard us with second-order bullshit. The majority of administrative activity, whether in private business or the public sphere, often seems to be little more than a sophisticated exercise in the combinatorial reassembly of bullshit.
It’s from The Bull$hit Syllabus, which was created by University of Washington Professors Carl Bergstrom and Jevin West, who are trying to combat The Bull$hit. The syllabus includes questions and standards for data scientists to think about and use.
They believe that with the advent of ‘Big Data’ and tools to deal with it, the amount of BS in the world has really risen too much. It has become too easy for BS to be taken out of context, and to be spread and made to go ‘viral.’ Big Data has given us ginormous datasets to study and manipulate. While we might not be quick to draw conclusions from a smaller data set, we have become very comfortable putting credence to implications and patterns in big data sets. Bergstrom explains:

This post was published at Zero Hedge by Sal Arnuk and Joe Saluzzi via Themis Trading blog, Jan 23, 2017.


Gold at (1:30 am est) $1215.00 UP $10.70
silver at $17.15: UP 15 CENTS
Access market prices:
Gold: $1218.20
Silver: $17.25
The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning
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:
MONDAY gold fix Shanghai
Shanghai FIRST morning fix Jan 23/17 (10:15 pm est last night): $ 1230.69
NY ACCESS PRICE: $1218.00 (AT THE EXACT SAME TIME)/premium $12.69
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1226.20
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London Fix: Jan 23/2017: 5:30 am est: $1213.75 (NY: same time: $1213.25 (5:30AM)
London Second fix Jan 23.2017: 10 am est: $1212.85 (NY same time: $1212.80 (10 AM)
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 January 23, 2017.

As Dollar Slides, Equity Generalists “Are Increasingly Uncomfortable” With Reflation Trades

One week after RBC’s Charlie McElligott pointed out that the “someone is going to get hurt badly” in the upcoming clash between leveraged and real money investors in 5Y bonds, whose divergent opinions on the future of interest rates, and thus inflation, has reached record levels…

… and was was picked up overnight by Bloomberg, today the cross-asset strategist focuses on something broader, namely the creeping rotation out of consensus reflation trades, driven by “concerns surrounding Trump’s ability/willingness to implement a ‘border-adjusted tax’ system” which was at the core of much of the USD appreciation.
So is it time to finally “sell the inauguration”?

This post was published at Zero Hedge on Jan 23, 2017.

The Ice-Nine Lockdown

I am often asked, ‘Does Ice-Nine put gold at risk of lockdown or confiscation?’
First, Ice-Nine is a phrase borrowed from author, Kurt Vonnegut. Vonnegut wrote a book in the early 1960s called Cat’s Cradle, and it’s a doomsday scenario.
In Cat’s Cradle, a doomsday machine is created. Scientists discovered a molecule called Ice-Nine, very similar to water (HO) with two differences.
Number one, it has a melting point of 114.4F. Which means it’s frozen at room temperature. The other characteristic is if a molecule of Ice-Nine comes in contact with a molecule of water, the water turns to Ice-Nine. In other words, it turns to a form of ice.
The plot of the book was that there was only a small amount of this Ice-Nine and the scientist gave it to his three children in vials. As long as the vials were sealed, it was all good. If you open the vial and pour the Ice-Nine into a stream, the stream would freeze, then the lake would freeze, a river would freeze, a ocean would freeze, the entire plant would freeze. We would be in a new ice age and life on Earth would be wiped out.
It’s a doomsday machine.
I took that as a metaphor to explain what’s going to happen in the financial system and the next financial crisis. This is really what my book The Road to Ruin is about.
(I describe all the critical details in The Road to Ruin. Go here now to get your copy for free, instead of paying the full $23).
Physical gold and silver are the answer to Ice-Nine. I don’t think they’re in jeopardy in an Ice-Nine scenario. I think that gold and silver are one of the ways to survive Ice-Nine.

This post was published at Wall Street Examiner on January 23, 2017.

El-Erian Warns “Investors Are Underestimating Sudden Policy Shifts”

Separate comments last week from European Central Bank President Mario Draghi and Federal Reserve Chair Janet Yellen confirmed an ongoing change in the policy configuration facing their two systemically important central banks: The recognition of a transition in both economic conditions and prospects, along with questions about robustness and durability.
For now, Mohamed El-Erian notes, their response is to maintain a stimulative direction to their policies, and to use verbal guidance that avoids rocking the boat. Although it’s consistent with investor expectations, the forward-looking policy path may not be as secure and smooth as market pricing would suggest, however.
As we noted previously, if the past 20 years of global historical data is anything to go by, that ‘awakening’ of economic policy uncertainty is very bad news…

This post was published at Zero Hedge on Jan 23, 2017.

China Approaching the Limits of Currency Management

The People’s Bank of China has historically exercised great control over domestic Renminbi valuation, but the traditional tools used for currency management are beginning to come under stress.
This monetary strain will be exacerbated by activities in the United States including an expected rise in interest rates and an aggressive stance against China by the incoming Trump administration. These factors pose significant challenges to China’s long-term growth targets even as Beijing carefully manages the Yuan’s devaluation.
Internal Challenges
China has historically been dependent upon a handful of levers for currency management, and Beijing’s favored lever of control fluctuates as time passes. One of these tools, China’s foreign exchange reserves, has realized rapid depletion from significant use in recent years. In December, reserves fell by $41 billion to $3.01 trillion. While still at a safe level, it is unlikely that Beijing can dip well below the current reserve without realizing increased currency and market volatility. The selling of its reserve of US dollars has been the tool of choice to slow the rate of Yuan depreciation, but further depletion of China’s foreign exchange reserves will have to slow in 2017.

This post was published at FinancialSense on 01/23/2017.

Gold and Silver Market Morning: Jan 23 2017 – Gold and Silver rising against the dollar!

Gold Today – New York closed at $1,207.60 on the 20th January after closing at $1,201.50 on the 19th January. London opened at $1,212.00today.
Overall the dollar is weaker against global currencies today. Before London’s opening:
– The $: was weaker at $1.0730: 1 from $1.0679: 1 Friday.
– The Dollar index was weaker at 100.42 from 100.97 Friday.
– The Yen was stronger at 113.61: $1 from Friday’s 114.73 against the dollar.
– The Yuan was stronger at 6.8546: $1, from 6.8765: $1, Friday.
– The Pound Sterling was stronger at $1.2452: 1 from Friday’s $1.2355: 1.
Yuan Gold Fix
Shanghai was trading today at around 271 Yuan having touched slightly higher during the day. On today’s exchange rate this equates to $1,229 with the dollar weaker across the board as well as against the Yuan.
New York, on Friday closed at only a $4.60 discount to prices in Shanghai on Friday and London opened on Monday $12.00 higher than Shanghai. Shanghai is, once again driving prices despite the stronger Yuan against the dollar. It demonstrates that gold is rising against all currencies today and in all gold markets.

This post was published at GoldSeek on 23 January 2017.

“Pulling Awesome Forward”

U. S. markets have ‘celebrated’ the Trump election, with the S&P 500 rising ~8% after a quick ~4% drop pre-election (and much deeper drop in futures the night of the election). There are quite a number of themes, positive and negative, continuing into the new year from 2016. The ‘positives’ – infrastructure spend, tax reform, healthcare reform, and deregulation – have built a relentless bid, or scared off sellers…for the time being.
The ‘negatives’ – dollar strength, dollar scarcity, global debt bubble, Fed divergence, stress in European and Chinese banks, Yuan devaluation, rising populism in Europe (with French, Italian, German elections around the corner), low but rising probability of Euro-Exits, protectionist leanings (Smoot-Hawley tariffs contributed to a 66% decline in global trade from 1929-1934), and U. S. equity valuations at the third highest level ever (median stock on the S&P 500 at 98th percentile, and the all-time highest valuation for the index when including the enormous amount of corporate debt growth over the past decade) – are relegated to the dark recesses of pre-election…pre-light.

This post was published at Zero Hedge on Jan 23, 2017.

The Blatant ‘Border Tax’ Threat Donald Trump Gave to Businesses Today

This morning, President Donald Trump met with 12 big-name CEOs from across the nation to restate his administration’s corporate tax cut promises.
This reiteration, however, also came with a blatant threat…
The new POTUS likewise used this powwow as an opportunity to remind these bigwigs that he is serious about imposing a significant ‘border tax’ on companies that move production away from the United States.
Here’s how Trump delivered this deliberate warning…
Donald Trump: This Border Tax Will Be ‘Very Major’
‘If you go to another country and you decide that you’re going to close and get rid of 2,000 people or 5,000 people … we are going to be imposing a very major border tax on the product when it comes in,’ Trump said today, according to The Wall Street Journal.
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As far as the specificity of Trump’s ‘very major border tax’ is concerned, the real estate mogul has promoted a selective 35% imposition on companies in violation in the past. That percentage varies enormously from the ‘border adjustment’ that is a key feature of the House Republicans’ overall tax plan.

This post was published at Wall Street Examiner on January 23, 2017.


An investigation by a New York Times affiliate has revealed that billionaire globalist financier, George Soros, who recently called Donald Trump a ‘would-be dictator’ during an interview at Davos, and whose Open Society Foundation works to finance and forward progressive causes across the world, and is intimately connected to numerous color revolutions, the Arab Spring, and various other political uprisings across the globe, has been revealed to be connected to more than 50 of the groups that organized the nationwide ‘Women’s Marches’ that saw millions of Americans take to the streets across the country.
The march’s official website says, ‘We stand together, recognizing that defending the most marginalized among us is defending all of us.’ Many people turned out to be a manifestation of that ideal, but it’s important to understand the reality of what is happening on a strategic political level as an inorganic politically contrived and funded event. This, in no way, takes away from the validity of standing up for women’s issues but is important to note that women are being used as pawns in a larger ideological political game that has international overtones of power politics.
These marches were largely billed as ‘spontaneous’ and ‘grassroots’ actions, by publications like The Guardian and Vox. However, the reality exposed by an investigation by self-described liberal feminist, Asra Q. Nomani, writing for New York Times affiliate Women in the World, revealed that after studying the ‘funding, politics and talking points of the some 403 groups that are ‘partners’ of the march,’ contrary to the non-partisan rhetoric used in these marches, they were not really ‘women’s march’ but were rather ‘for women who are anti-Trump.’

This post was published at The Daily Sheeple on JANUARY 23, 2017.

Stocks and Precious Metals – Forget it Jake, It’s Chinatown

President Trump continues to rattle markets with change, or at least the proposals for them.
Stocks were off a bit, as well as the dollar, as the Executive Orders started flowing, to dump the TPP among other things.
No internationalist there. I suspect this will cause increasing displeasure in his own party, and the establishment of the Northeast power corridor and Silicon Valley in general.
Otherwise, most of the markets seem to be locked into a fairly tight one percent trading range, with a back and forth motion chopping the off-footed daytraders.

This post was published at Jesses Crossroads Cafe on 23 JANUARY 2017.

Carl Icahn Praises Trump Speech: “Our Dangerous Slide Towards Socialism Is Over”

Having used words never before heard in a Presidential inauguration address:
bleed, carnage, depletion, disrepair, flush, Islamic, ripped, sad, rusted, sprawl, stealing, stolen, subsidized, tombstones, trapped, trillions, unstoppable…
President Trump has face criticism for his no-holds-barred speech – confirming his stance as an anti-establishment “America First” president. Trump advisor Carl Icahn told CNBC on the afternoon of the inauguration…
“Donald surprised me coming on so strongly about the establishment. I admire him for doing that.”
“I admire him for not just trying to say, ‘Wow. Let’s smooth it over. Let’s be buddies.’ I mean, he came on extremely strongly and he’s giving you a look at what the future, I think, is going to be.”
Icahn, Trump’s special advisor on regulatory reform, said he expects the 45th president of the United States to take a confrontational approach, to some extent. Yet he argued that may be a good thing because it will promote change.
“I think you have to break up this establishment. You have to stop the perception which we have in this country that the government is at war with business, that the government doesn’t like business and that’s what you’ve had for eight years with Obama,” Icahn said.

This post was published at Zero Hedge on Jan 23, 2017.

Saving Retirement

We have often written that when everyone is asking the same question, it is usually the wrong question. However, I have also found the converse to be quite true – if no one is asking a question, it is probably one that you want to at least ask yourself just in case. For this reason, my attention was drawn to a blog post by Peter Lazaroff of Plancorp last week that asked several big name financial commentators like Barry Ritholtz, Ben Carlson, and Josh Brown the following question: What issue in the world of finance isn’t getting enough attention? Naturally, with so much focus on the US political landscape recently, I expected to see responses about such under-the-radar topics as European banks, emerging markets, or the need to raise the debt ceiling once again in March. Yet, to my surprise, most of the answers were about more fundamental personal finance themes such as low savings rates, the amount paid in fees, and the switch to passive investing, all of which likely have a bigger impact on an investor’s long-term returns than just some transitory news headlines.
Retirement savings, in particular, received quite a bit of real estate on the blog, with Isaac Presley of Cordant Wealth Partners pointing out that ‘the median retirement savings for individuals aged 55-64 is just over $100,000, good for roughly $4,000 in annual spending’ (per the Government Accountability Office). That is a frighteningly low number for people who should be nearing or entering their retirement years, especially when modern medicine and a renewed focus on health keeps extending our life expectancy upward. According to the Social Security Administration’s actuarial table, a current 65-year-oldemale is expected to live another 20 years (to approximately 85), but one thing that is often overlooked about aging is that the older you get, the longer you are expected to live compared to the average life expectancy. For example, while that 65-year-old woman is currently expected to live to 85, a woman who has enjoyed enough good health to live to be 80 is then expected to live another 9.64 years, to the age of almost 90. The point is, there is a very good chance that retirees will require income for longer than they anticipate, and the average person is woefully unprepared.

This post was published at FinancialSense on 01/23/2017.

Sean Spicer Gives First Official White House Press Conference – Live Feed

WH briefing room already filling up for @PressSec's first official briefing
— Jordan Fabian (@Jordanfabian) January 23, 2017

With CNN comparing White House press secretary to Baghdad Bob after his five-minute statement on Saturday that was widely criticized for containing false claims (or “alternative facts”), Sean Spicer is set to give his first official press briefing for President Donald Trump this afternoon. We wish Spicer the best of luck in this potentially career-defining moment…
“I mean he has people comparing him to Baghdad Bob the first day in office, saying, ‘I can’t trust this guy,’” CNN media analyst Bill Carter noted.
Yesterday the NYT reported Spicer’s performance before the press on Saturday had earned the ire of the president.
“[H]is appearance, according to the people familiar with Mr. Trump’s thinking, went too far, in the president’s opinion.”
While the report is unconfirmed, it will be interesting to watch if Spicer is the first casualty of the Trump administration.

This post was published at Zero Hedge on Jan 23, 2017.