Maxine Waters Does It Again…

Maxine Waters is mad; angry as hell that President Trump dared to fire FBI Director Comey and she took to MSNBC to explain just how terrible his decision to fire Comey was… except it didn’t quite come out that way – as we are used to seeing when the California Democrat opens her mouth.
As RealClearPolitics reports, in March, Waters issued a press release that read Comey “advanced Russia’s misinformation campaign.”
But today, during an interview on MSNBC, she explained…

This post was published at Zero Hedge on May 11, 2017.

“Pick Your Poison”: These Are The Market’s Three Negative Narratives

Having turned over the past few months from reflationist, to increasingly skeptical of the whole reflation impulse scenario – mostly on the back of China’s infamous credit impulse crashing – RBC’s Charlie McElligott takes a look at the three “negative narratives” that are gradually emerging for the markets. But before listing them, here is his latest summary of where the increasingly more confused market finds itself:
From “The Battle Of Who Could Care Less” by Charlie McElligott

My ‘macro range-trade’ thesis continues to be representative of the lowest-conviction market I’ve seen in a long-time, with ‘risk-sizing’ at VERY muted levels. Sentiment ‘paper-cuts’ are mounting with risky-assets sitting near recent nose-bleed highs, making them ripe for today’s modest draw-down into poor liquidity. Negative client narratives are building largely around this idea that 1) the Fed is tightening (staying ‘on message’ with hawkishness); 2) China is deleveraging (PBoC has ‘room to run’ in light of recent + data overshoot); 3) the ECB is pivoting ‘less dovish’–all while 4) the global economy is mean-reverting ‘slower’ following the outstanding expansion since last Summer.

This post was published at Zero Hedge on May 11, 2017.

The Blockchain: A Gold and Silver Launchpad?

A new day is dawning for precious metals. Gold and silver – the world’s oldest money – are “connecting” with the newest money, digital cryptocurrencies. The final outcome of this nexus is unpredictable, but it is foolhardy to ignore what is taking place.
Central governments around the globe have waged, against their own citizens, a virtual “War on Cash.” Efforts by Sweden to become “cash-free;” progressive “downsizing” of Eurozone currency units; a currency recall in India that affected 1.3 billion people; solemn talk about eliminating $100 and even $50 bills in the U. S. – all in the supposed fight against “drug dealing and tax evasion.”

This post was published at GoldSeek on 11 May 2017.

Trump Tweets “Russia Is Laughing As U.S. Tears Itself Apart”, Scraps FBI Visit

It appears that US politics is back to its quasi-surreal state first observed in the early weeks of the Trump administration, when the president spent much of his day in front of Twitter. And while it is unclear if Trump is bored, busy, engaging in damage control or quite the opposite, he blasted a couple of tweets shortly after the close which have led to the now traditional media firestorm.
First, Trump responded to his perpetual nemesis, Rosie O’Donnell, and specifically her tweet from December 20 of last year, in which she said “FIRE COMEY” to which Trump responded, “We finally agree on something Rosie.”
We finally agree on something Rosie. — Donald J. Trump (@realDonaldTrump) May 11, 2017

This post was published at Zero Hedge on May 11, 2017.

The Fed Gets another Reason to Raise Rates and Unravel QE

Inflation pressures further up the pipeline rise the most in 5 years.
The Producer Price Index, which measures inflation at the wholesale level for goods and services, and thus up the pipeline from the Consumer Price Index, jumped 2.5% in April from a year ago, the steepest increase since February 2012, blowing past consensus expectations of 2.2% (chart by Trading Economics):
On a monthly basis, seasonally adjusted, wholesale prices rose 0.5% from March. Nearly two-thirds of that increase was due to services, the biggest part of the US economy, where prices increased 0.4% from March. Among the standouts, services less trade, transportation, and warehousing, jumped 0.8% from March.
And it wasn’t ‘food and energy’: the PPI without food and energy (‘core’ PPI) jumped 0.7% from March, its 11th month in a row of increases. It’s up 2.1% year-over-year. Back in March, it was up only 1.7%. So picking up momentum.

This post was published at Wolf Street on May 11, 2017.

Stocks and Precious Metals Charts – The Bacchae

‘Cleverness is not wisdom – sense is nonsense to a fool.
He who overreaches will, in his overreaching, lose what he does possess, betraying what he has now. That which is beyond human grasp, which is greater than the mere mortal, the unattainably great, is for the mad, or for those who listen to the mad, and then believe them.’
Euripides, The Bacchae
Surely we can do better than this as a nation.
Neither political party of our establishment elites is distinguishing themselves except by their hysterical grasping for personal advantage and power. And so the real problems of the people go unattended.

This post was published at Jesses Crossroads Cafe on 11 MAY 2017.

Why Tesla’s Solar Roof Is Just Another Giant Taxpayer Gift To Elon Musk

There are two things in which Elon Musk is an undisputed champion: creating hype and buzz for massively cash-flow burning products and companies, and abusing every possible loophole in the US tax code to get explicit and implicit subsidies from the government. He demonstrated the latter on Wednesday, when Tesla began taking orders for its solar roof tiles, a cornerstone strategy of Elon Musk’s strategy to sell a “green”, fossil-fuel-free lifestyle under the brand name of its luxury electric vehicles.
First the bad news: Tesla said the product, which generates solar energy without the need for traditional rooftop panels – assuming one lives in a traditionally sunny climate – will be substantially pricier than a conventional roof but don’t worry, it will “look better” and ultimately pay for itself through reduced electricity costs… it just may take 20 or more years for the payback period to occur (more on the math below).
Made with tempered glass, Tesla assures that “Solar Roof tiles are more than three times stronger than standard roofing tiles” and is why the company offers the “best warranty in the industry – the lifetime of your house, or infinity, whichever comes first.” There is just one problem: most Americans live in their house less than a decade before they end up selling it and moving to a different roof, which means that the vast majority of Americans who end up buying the new Tesla product offering will have moved out of their home long before the investment pays back for itself.

This post was published at Zero Hedge on May 11, 2017.


Gold: $1224.10 UP $4.50
Silver: $16.21 UP 8 cent(s)
Closing access prices:
Gold $1225.00
silver: $16.36
Premium of Shanghai 2nd fix/NY:$12.40
LONDON FIRST GOLD FIX: 5:30 am est $1221.00
For comex gold:
For silver:
For silver: MAY
Total number of notices filed so far this month: 4286 for 21,430,000 oz

This post was published at Harvey Organ Blog on May 11, 2017.

NBC Releases Extended Trump Interview: “No Collusion Between Me And The Russians”

Having thrown the official White House “Comey termination” narrative for a tailspin, when in an excerpt from his NBC News interview posted earlier, Trump said he was going to fire Comey “regardless” even without getting Deputy AG Rosenstein’s report and that Comey had told Trump he was not under investigation, moments ago NBC released several more excerpts from the much anticipated Trump interview.
The key highlight of the latest release is that Trump said he supports a full investigation into Russian interference in the U. S. election last year, saying he wants the probe to be done “absolutely properly.”
“I want to find out if there was a problem with the election having to do with Russia…. If Russia or anybody else is trying to interfere with our elections I think it’s a horrible thing and I want to get to the bottom of it and I want to make sure it will never ever happen.’
Trump told Lester Holt but also insisted there was “no collusion between me and my campaign and the Russians.” Instead, “this was set up by the Democrats.”
“The other thing is, the Russians did not affect the vote, and everybody seems to think that” he added.

This post was published at Zero Hedge on May 11, 2017.

Trump Talks “Trumponomics” With The Economist

President Trump sat down with The Economist last week to talk trade, immigration, taxes, and health care and the transcript is chock-full of ‘Trumpisms’ that should not go unnoticed. Here are just a few of our favorite exchanges:
On NAFTA, apparently ‘big’ is not an appropriate adjective to describe the renegotiation that will take place…‘massive’ and/or ‘huge’ are far better descriptors:
It sounds like you’re imagining a pretty big renegotiation of NAFTA. What would a fair NAFTA look like?
Big isn’t a good enough word. Massive.
It’s got to be. It’s got to be.
What would it look like? What would a fair NAFTA look like?
No, it’s gotta be. Otherwise we’re terminating NAFTA.
Some people think this is a negotiating tactic – that you say very dramatic things but actually you would settle for some very small changes. Is that right?
No, it’s not, really not a negotiation. It’s really not. No, will I settle for less than I go in with? Yes, I mean who wouldn’t? Nobody, you know, I always use the word flexibility, I have flexibility. [Goes off the record.] [Our] relationship with China is long. Of course by China standards, it’s very short [laughter], you know when I’m with [Xi Jinping], because he’s great, when I’m with him, he’s a great guy. He was telling me, you know they go back 8,000 years, we have 1776 is like modern history. They consider 1776 like yesterday and they, you know, go back a long time. They talk about the different wars, it was very interesting. We got along great. So I told them, I said, ‘We have a problem and we’re going to solve that problem.’ But he wants to help us solve that problem.

This post was published at Zero Hedge on May 11, 2017.

A Golden Cure: Market for Gold Nanoparticles Expected to Hit $8 Billion in Next Five Years

Silver has long played an important role in the medical field. For centuries, it has been used as an antibacterial agent and to fight infections. Silver also serves an important role in x-ray and medical imaging. Now silver’s big brother, gold, is starting to muscle into the world of healthcare.
According to the market research firm Global Market Insights, the market size for gold nanoparticles is projected to reach $8 billion by 2022. As Forbes recently reported, gold’s increasing use in the healthcare industry will drive that growth. Gold nanoparticals are used in a wide range of medical applications, including imaging, diagnosis, drug delivery, photo-thermal therapy, and even as a coating for titanium-based dental implants.
In the most recent development, researchers have discovered gold nanoparticles can serve as a vehicle to deliver cancer medication directly into cancer cells. The drug shuts down a molecule called telomerase. This process keeps malignant cells from rejuvenating and growing out of control.

This post was published at Schiffgold on MAY 11, 2017.

Gold Is Unloved…and That’s a Good Thing for Metals Investors, Says Kathy Derbes

In direct contrast to the “euphoria days” of 2011, most investors have now turned bearish on gold after experiencing a multi-year bear market. Contrarian investors – who generally invest against the consensus or the crowd – argue that’s a good sign and believe the bear market in gold has likely reached an end.
One way to determine this is by looking at the behavior of retail investors, who are much smaller, speculative buyers, vs. the wholesale market, who buy much larger quantities and, often, when prices are more attractive.
Retail Sentiment Bearish
‘I promise you, phones are not ringing,’ says Kathy Derbes, a bullion dealer we recently spoke to on Financial Sense Newshour. ‘No one even wants to talk about gold. That’s where we are now … and it’s the mirror opposite of where we were in 2011.’
Derbes says the current investor psychology towards gold is extremely bearish. While it was difficult to source coins and bars at the peak of the market in 2011, the opposite is true now.
‘Prices have come down dramatically,’ she said. ‘There is little buying (and) clients are selling back to us.’

This post was published at FinancialSense on 05/11/2017.

Betting Against A June Rate Hike? Something’s Going On

We noted yesterday that the recent trend of increased volumes into Eurodollar future out-months was ‘odd’…
But the sudden surge in interest in Eurodollar calls (vs puts) suggests more than just a few prop bets are being placed on the fact that The Fed does not hike rates in June.
As Bloomberg notes, preliminary futures open interest data for Wednesday shows steep increases in several Jun17 eurodollar call strikes, consistent with view that Fed won’t hike in June amid tightening FRA/OIS spread. However, these options bets have largely gone unnoticed as futures-market-implied odds (which the majority of investors are shown) of a June hike have been steady at around 80% for a week.
A second consecutive drop in 3-month dollar Libor setting Wednesday prompted a flurry of dovish Fed bets and waves of buying across Jun17 eurodollar futures.

This post was published at Zero Hedge on May 11, 2017.

When The System Comes Down It Will Not Be A Smooth Landing – Episode 1277a

The following video was published by X22Report on May 11, 2017
Retail is imploding at a faster rate, the economy is breaking down quicker than the central bank thought it would. The Subprime bubble in auto loans will be the needle that pops the bubble and will lead to a crash in other sectors. Connecticut state capital prepares for bankruptcy. Trump continually repeats that NAFTA is going to be a massive re-negotiation or it will be terminated. Goldman continually warns of a major market correction. Bill Blain says something is happening in Europe and it doesn’t look good. The Fed just got a signal that it is ready to raise rates again, inflation is moving above their 2 percent forecast.

McCabe Crushes ‘Trump Interference’ Narrative: “There Has Been No Effort To Impede Our Investigation”

As predicted, members of the Senate Intelligence Committee came out swinging early today with several questions for acting FBI Director McCabe on whether the Trump administration was actively seeking to impede an investigation into Russian meddling in the 2016 election. Unfortunately, McCabe’s answers will undoubtedly be somewhat disappointing for Democrats and CNN.
In an early exchange with Senator Marco Rubio, McCabe offered a very succinct answer on alleged White House interference with ongoing FBI investigations:
Rubio: “Has the dismissal of Mr. Comey in any way impeded, interrupted, stopped, or negatively impacted any of the work, any of the investigations or any ongoing projects at the Federal Bureau of Investigation?”
McCabe: “There has been no effort to impede our investigation to date.”
Moreover, McCabe went on to confirm that no agents have been removed from the Russia probe and that no one from the White House had contacted him about the ongoing investigation.

This post was published at Zero Hedge on May 11, 2017.

1999 called, they want their stock bubble back…

File this one away under ‘Completely Obvious…’
Last night the parent company of Snapchat reported a quarterly loss of more than TWO BILLION dollars.
Snapchat, of course, is the photo-focused social networking app that’s adored by tweens and adults who still live with their parents.
(Talk about a lucractive demographic.)
The company IPO’d just a few months ago with a market capitalization of $30+ billion despite slowing growth and a history of never turning a profit EVER.
According to the company’s quarterly report its finances have gone from bad to worse.
Operating cashflow dropped from negative $92.5 million to negative $155 million; and its total loss for the quarter including stock-based compensation was $2.2 billion.

This post was published at Sovereign Man on May 11, 2017.

Bull Market, Dude

This one will be familiar to old The Daily Dirtnap subscribers.
Around the summer of 2006, when I was at Lehman Brothers, I started bellyaching in my notes to clients about how the market went up every day. I am a pretty creative guy, so every day I had very colorful (and irreverent) things to say about how stocks went relentlessly higher and how my life sucked.
This went on for a couple of months.
Then, one day I sent out a whining email about stocks and I got back a three-word reply from a hedge fund trader:
‘Bull market, dude.’
In almost 20 years in the investment business, I think those are the most profound words I have ever heard. There is a lot of wisdom in ‘bull market, dude’:
Stop fighting it. It will turn when it turns, not before. In bull markets, you can only be long or flat, not short. Everyone is making money except for you. Stop being a putz. Etc.

This post was published at Mauldin Economics on MAY 11, 2017.

Bill Blain: “Something Is Happening In Europe And We Don’t Know What It Is…”

We start with the overnight observations by Mint’s Bill Blain who points out something contradictory: on one hand Europe is said to be “fixed” with inflation expectations rising and the ECB preparing to take its foot off the gas pedal. On the other hand, “European Sovereigns will start issuing long bonds again…. A French 30yr is in the works, Italy and Belgium are both looking, while other rumours say the EFSF might be in the frame. … Long dated low yield bonds make great sense when inflationary expectations are low into infinity, and you expect the New Normal of Low Rates in perpetuity to hold for ever.”
As he puts it, ” If the global economy is so rosy, why is the Euro bond market going long? Whatever happened to expectations Europe was going to grow again? Something is happening and we don’t know what it is…”
Perhaps what is going on is that the market is looking beyond the current “reflation” scare, and already preparing for the next deflationary downturn, now that China’s credit impulse has fizzled and the impact is set to hit the world in the coming months…
In any case, read on from Blain’s Morning Porridge – May 11th 2017

This post was published at Zero Hedge on May 11, 2017.

Art Hill: As Tech Stocks Explode Higher, Odds Build for Summer Correction

Most of the major averages, including the S&P 500 and the Dow Jones, have been trending sideways except for the Nasdaq, led by tech giants Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), and Google (GOOG).
Art Hill of told Financial Sense Newshour that a major market reversal is unlikely but that investors shouldn’t be suprised by a summer correction as the Fed prepares to raise rates again this June. Hill also shared his views on the US dollar, interest rates, commodities, and oil.
Tech Ahead, Markets Somewhat Flat
In terms of momentum, US technology stocks are dominant right now and investors are willing to pay pretty high multiples to own them.
‘They have been the clear leaders, and they are helping to push the Nasdaq – and the Nasdaq 100 in particular – higher,’ Hill said.
Similarly, the Dow had a surge in that November-December period, then moved flat into January, and experienced another surge from mid-January to the end of February and early March. It’s been flat now, Hill noted.

This post was published at FinancialSense on 05/10/2017.