Trump Threatens Bi-Weekly Press Briefings: “I’ll Have One Every Two Weeks And I’ll Do It Myself”

The Fake Media is working overtime today!
— Donald J. Trump (@realDonaldTrump) May 12, 2017

Following the chaotic fallout over the firing of FBI Director James Comey, Fox News has just wrapped an interview with POTUS conducted by Judge Jeanine Pirro. And, just moments ago, we got our first sneak peak at the contents of that upcoming interview when Fox News released a teaser clip of Trump once again threatening to cancel the White House’s daily press briefings.
Pirro: “Are you moving so quickly that your communications department cannot keep up with you?”
Trump: “Yes. That’s true.”

This post was published at Zero Hedge on May 12, 2017.

MAY 12/GOLD ADVANCES BY $3.80 AND SILVER IS UP 21 CENTS/GOLD/ ANOTHER 2/369 MILLION OZ OF SILVER ADDED TO THE SLV/FOR THE PAST 3 TRADING DAYS: ALMOST 6 MILLION OZ ADDED/RETAIL SALES A BIG MISS IN…

Gold: $1227.90 UP $3.80
Silver: $16.42 UP 21 cent(s)
Closing access prices:
Gold $1228.60
silver: $16.47
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SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1238.76 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: 1226.50
PREMIUM FIRST FIX: $12.26
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SECOND SHANGHAI GOLD FIX: $1239.72
NY GOLD PRICE AT THE EXACT SAME TIME: 1226.60
Premium of Shanghai 2nd fix/NY:$13.12
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LONDON FIRST GOLD FIX: 5:30 am est $1227.90
NY PRICING AT THE EXACT SAME TIME: $1228.65
LONDON SECOND GOLD FIX 10 AM: $1231.25
NY PRICING AT THE EXACT SAME TIME. $1230.00
For comex gold:
MAY/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 8 NOTICE(S) FOR 800 OZ.
TOTAL NOTICES SO FAR: 473 FOR 47300 OZ (1.47122 TONNES)
For silver:
For silver: MAY
131 NOTICES FILED TODAY FOR 655,000 OZ/
Total number of notices filed so far this month: 4417 for 22,085,000 oz

This post was published at Harvey Organ Blog on May 12, 2017.

Bob Murphy: Where Monetarism Goes Wrong

The following video was published by misesmedia on May 12, 2017
The great Austrian economist Friedrich Hayek celebrated a birthday earlier this week, while the prominent monetarist (and Fed historian) Allan Meltzer passed away the same day. Joining us to discuss monetarism is our friend Bob Murphy, who lays out the central tenets of the Chicago school and its godfather Milton Friedman. At its heart, Bob explains, monetarism is a cousin of Keynesianism – one advocates fiscal stimulus, the other monetary stimulus. Both go astray when it comes to money, and both fail to see the trees in the macro forest. Bob explains why in this great discussion of the differences between the Austrian and Chicago schools.

The Last Act Of A Central Bank,Pillage The People & Leave Them Destitute, We Are Here-Episode 1278a

The following video was published by X22Report on May 12, 2017
Home Capital depositors have withdrawn approximately 94% of the funds. Umich is seeing an uptick in confidence even though stores are closing, the housing market is declining and the GDP came in at .7%. Retail sales are in and it is a disaster. The stock market bubble is starting to look like 1999. Trump has made a deal with China, both countries will be trading meat. US Treasury Mnuchin is looking to revoke the Volcker rule and allow banks to invest in riskier investment which will allow the deposits at the bank to be at risk. Fed Evans says the Fed will raise interest rates once more. IMF is now pushing to place a 10% tax on the people of Europe to pay for the debt.

Fed’s Evans To Market: We Are Right, You Are Wrong

The egotistical arrogance is disgusting…
After years of (self-admitted) failure to achieve anything like a coin-flips accuracy in forecasting, Federal Reserve Bank of Chicago President Charles Evans excl;aimed this morning (after US macro data collapsed to one year lows) that:
‘I think that our path is more likely to be the one that we actually follow’ than the market’s view or the federal funds rate in the future. “
That a dozen ivory tower academics know best is comical. Here’s the current market vs Fed chart… (the market has lost faith since the March rate hike)

This post was published at Zero Hedge on May 12, 2017.

The Great Shadow Unwind: Chinese Entrusted Loans Post First Decline In 10 Years

With everyone, including Pimco, now acknowledging what we said most recently in February, namely that China’s credit impulse is the main, if not only variable, that determines the fate of global reflation …

… the latest credit numbers released by the PBOC overnight very closely watched by macro traders around the globe in light of the ongoing liquidity discussions surrounding the deleveraging narrative.
On the surface, the data wasn’t particularly exciting, with new bank loan data surprising modestly on the upside, most likely the result of less stringent quantitative controls by the central bank instead of a sharp pickup in bottom-up demand from specific sectors. Specifically, new loans amounted to RMB1.1 trillion, above the 815BN expected, while the broader, Total Social Financing dipped from March’s all time high of RMB2.12 trillion to 1.39 trillion, also slighly above the RMB1.15 trillion. This amounted to a 14.5% increase in TSF stock Y/Y, below the 14.8% in March, and another confirmation that China’s credit is slowing down. Mortgage loan supply remained steady at RMB444 bn, little changed from the RMB450 bn in March, despite the property sector supposedly tightening (it would also explain why home prices have again rebounded in recent months).
Overall M2 money supply fell as well, and at 10.5% Y/Y, down from 10.6% in March, it missed expectations of a 10.8% increase.

This post was published at Zero Hedge on May 12, 2017.

Quants Are Looking At Increasingly Stranger Things For A Trading Edge

Today Bank of America released its annual “Institutional Factor Survey”, i.e., questionnaire targeting market quants (but not only), which seeks to assess which factors and attributes are most important in the current environment to clients in selecting securities. As it introduces the 37 page report, “even if you don’t wear a pocket protector this report is relevant” as the rise in ‘smart beta’ assets at close to a 30% annualized run rate during this bull market – and what feels like a seismic shift in assets from fundamental to systematic strategies – suggest factor investing matters to everyone, not just quants.
She is right: as we predicted all the way back in 2009, in a world controlled by algos and where speed of trading matters more than depth of analysis, the quants have now taken over. This is shown by the next chart which confirms that some time in 2014-2015, fundamental investing became of secondary interest to the investing community a watershed event with huge implications and which has received little attention in the broader press.
As BofA’s Savita Subramaian, who conducted the study notes, the results of our 26th annual client survey show which factors clients are using relative to history, and where we could see the next bubble. “Case in point: we saw a rise in the popularity of beta in our survey beginning in 2007, which presaged the remarkable growth in ‘Low Vol’ ETFs and subsequent bubble-like valuations of low beta stocks.”

This post was published at Zero Hedge on May 12, 2017.

Stocks and Precious Metals Charts – Plutocracy – Moral Hazard Deluxe

“Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something.
They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.
The government, which was designed for the people, has got into the hands of bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy.”
Woodrow Wilson, The New Freedom, 1913
“The state within a state is hiding mostly in plain sight. The pressure to conform to an authority figure or peer group can cause people to behave in shocking ways.
It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice – certainly beyond the dreams of a salaried government employee.
The corridor between Manhattan and Washington is a well-trodden highway for the personalities we have all gotten to know in the period since the massive deregulation of Wall Street.”
Mike Lofgren, Anatomy of the Deep State

This post was published at Jesses Crossroads Cafe on 12 MAY 2017.

Stocks Sink Despite VIX Records As Economic Data Collapse Continues

Overheard in China this week…
“I was inverted…”
US Macro Data has collapsed for 8 straight weeks to its weakest and most negative in 12 months…
The last time US Macro and stocks decoupled like this was in mid 2015 and did not end well for stocks…
Finally to put a nail in this utter idiocy – here is ‘soft’ and ‘hard’ data… equities have even decoupled from the hype in ‘soft’ data…

This post was published at Zero Hedge on May 12, 2017.

Greek Stocks Drop After Longest Winning Streak In 26 Years

After 13 straight days higher – the longest streak since 1991 – the greek stock market fell today. This drop comes a day after we warned of the misplaced confidence surrounding the Greek government’s decision to issue debt once again…
As Bloomberg reports, the benchmark ASE Index fell on Friday, breaking its longest winning streak in 26 years. It rallied 19 percent from April 21 through Thursday, while investors poured money into a fund tracking the country’s shares, as Greece reached an agreement with its creditors on the technical issues of a second bailout review.

This post was published at Zero Hedge on May 12, 2017.

Hit by Run on Deposits, Banco Popular Denies it’s Looking for Rushed Takeover to Avert Collapse

Spain’s 6th largest bank: ‘We have liquidity until the end of the year.’
In the world of banking, confidence and trust are a precious currency. The moment a bank loses them, things tend to spiral down quickly. Spain’s sixth biggest and desperately troubled bank, Banco Popular, appears to be well along the process of losing the confidence of its customers, and with it their deposits. Last year the bank lost 6.5% of its deposit base. But now, according to a report by the financial daily El Confidencial, the deposit outflow is swelling from a trickle into a deluge.
The bank responded by making its deposits more attractive. Its deposit rates now range between 0.75% and 4%. With the eurobor at 0%, offering such enticing rates will obliterate Popular’s wafer-thin margins.
Yet the outflow only accelerated. Last week, when the bank reported a quarterly loss of 139 million, it disclosed that deposits had dropped an additional 5%, to 78.8 billion, in the January-March period.
But then came a fresh bombshell yesterday afternoon. El Confidencial reported that the outflow of deposits by private and institutional depositors has reached such proportions that the bank was on the verge of default. Its senior management had contacted the CEOs of Spain’s five biggest banks, Santander, BBVA, Caixabank, Banc de Sabadell and majority publicly owned Bankia, to discuss the urgent need for a quickfire takeover. The report stated that Popular’s new chairman, Emilio Saracho, a former vice-president of JP Morgan Chase, had hired JP Morgan, Lazard and Socit Gnrale to find a buyer.

This post was published at Wolf Street on May 12, 2017.

Silver Stockpiles Hit 21-Year High

Silver prices rallied with gold and both metals recovered last week’s closing level in US Dollar terms in London trade on Friday.
Silver prices rose above $16.40 per ounce as government bonds rose with world stock markets and commodities ahead of key US data on retail sales and consumer-price inflation.
Separate data overnight said China’s banks extended more new lending than forecast in April, but were likely overtaken by so-called ‘shadow banking’ loans now facing a crackdown by the Communist authorities.
Silver prices gained almost 1.9% by Friday lunchtime from Tuesday’s 5-month low, rallying faster against other currencies as the US Dollar also gained on the FX market.
“Silver resisted a further test lower in New York on Wednesday,” says a trading note from Swiss refiners MKS Pamp, “with the recent sell-off now looking overdone and interest, albeit likely timid interest, creeping back into the market.”
Gold prices today extended their rally to 1.1% from Tuesday’s 3-month low at $1214 per ounce as Brent crude oil edged further above $50 per barrel.

This post was published at FinancialSense on 05/12/2017.

It’s time to become your own banker. Here’s how –

Sometimes I wonder why most of the giant mega-banks are based in New York.
They should be here in Las Vegas, the gambling capital of the world. Because that’s precisely what they’re doing with your money.
Actually it’s not even your money.
From a legal perspective, every single penny you deposit at the bank becomes THEIR money. You’re nothing more than an unsecured creditor of the bank.
And now that they legally own what used to be your money, the bank can gamble it away on whatever crazy investment fad best serves their interests.
Here’s an easy way to understand it:
Imagine you were moving and needed to rent a storage facility for a few months to store your stuff.
You rent a U-Haul and move everything into the storage unit.
The way banking works, the second you drive away, the storage company now owns your furniture. Not you.

This post was published at Sovereign Man on May 12, 2017.

Goldman Spots An Odd Divergence In Energy

In late 2015 and early 2016, as oil crashed, a curious divergence emerged: as crude was dropping, junk bonds crashed with a far greater beta to the drop in the underlying commodity than equities, which remained persistently sticky, stubbornly refusing to drop to a “fair value” implied by oil. The same phenomenon was even more obvious on the way up, as once oil had found a “bottom” energy stocks surged, at times approaching record forward P/E multiples. We showed this epic divergence one years ago in “There Is No Word To Describe This” – The Energy Forward P/E Multiple Is Now Off The Charts.”
There was a simple explanation: markets assumed that last year’s oil crash was an outlier event, and as a result projected that oil would quickly return to its pre-crash levels.
It tried, and despite OPEC throwing everything it had ad it, it failed.
Which brings us to an interest observation made by Goldman overnight: in 2017, the relationship noted above has been flipped, and this time around it is HY Energy that is resisting lower crude, even as stocks are sliding far more than the recent drop in oil would suggest. Here’s Goldman:

This post was published at Zero Hedge on May 12, 2017.