Trump Turmoil Grows, Prompting Flight to Safety

Donald Trump has been dogged by efforts to undermine his presidency since winning the election in November. Deep State operators and political partisans have been working around the clock to hang a scandal around the president’s neck large enough to ruin him.
If markets are any indication, they got some help last week from former FBI director James Comey. Comey’s leaked memo asserting the president tried to interfere with the investigation of Michael Flynn, the former National Security Advisor, prompted a selloff in stocks and a boost in precious metals.

This post was published at GoldSeek on 22 May 2017.

BofA Finally Asks “Is The Tech Bubble Happening Again?”

While not nearly in the same ballpark as what is taking place right now with bitcoin, and its various alt-coin peers, the ~30% YTD move higher in tech stocks has been just as impressive, and is beginning to result in warnings of “deja vu” among at least among some bank analysts. One such growing skeptic, is BofA’s Michael Hartnett who writes that US growth stocks have just surpassed the 2000 ‘bubble’ highs vs global value stocks and wonders if “the [next] tech bubble has started.”
Asking rhetorically ‘Alexa, how high can markets fly?’ Hartnett writes that 2017 has seen big global stock (10%) and bond gains (4%), as well as the dramatic resumption of a bullish ‘deflation’ trade. Leadership in stock markets has reverted to the ‘growth’ theme, while leadership in bonds has reverted to the ‘yield’ theme. For example:
Nasdaq Internet index annualizing a 80% total return CCC rated junk bonds annualizing an 18% gain, while EM sovereign bonds (EMGB) annualizing a 17% gain. Pointing out something we showed one month ago, namely that in a world awash with central bank liquidity “nothing matters”, Hartnett laments that “the lack of tax reform, lack of strong economic growth, no oil recovery, more geopolitical tension, China credit fears, none of it has mattered thanks to the ongoing central bank ‘Liquidity Supernova’: central banks have purchased a whopping $1.1tn of asset YTD.”

This post was published at Zero Hedge on May 22, 2017.

Stocks and Precious Metals Charts – And Where They Make a Desert, They Call It Peace

‘He felt that he had known them all, those strange terrible figures that had passed across the stage of the world, and made sin so marvelous and evil so full of subtlety.”
Oscar Wilde, The Picture of Dorian Gray
‘In a nation run by swine, all pigs are upwardly mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely.’
Hunter S. Thompson
Stocks were drifting higher today on light volumes and the good news of a very large arms deal with Saudi Arabia. Few things are so immensely profitable for us than war, because its products contain their own need for replacements.
Gold and silver saw a little upside on weaker economic outlooks based on stagnant wages, weakening demand, and the continuing printing of money by the unproductive bushels in pursuit of mad and discredited economic theories.
There will be a Comex precious metals options expiration this Thursday the 25th.
Trump’s budget was revealed in absentia today.

This post was published at Jesses Crossroads Cafe on 22 MAY 2017.

How Do You Prepare The Country For An Economic Collapse, Like This – Episode 1286a

The following video was published by X22Report on May 22, 2017
UK threatens to quit Brexit as the ECB demand exit payment. S&P just cut rating of several Australian financial institutions because of a cooling housing market. Greece has imposed more austerity on the people and now they are coming for the safety deposit box. Bill introduced to cancel a billions of dollars worth of student loans, this will allow the government to use tax payer money to collect. NY bankruptcy judge sees a surge in bankruptcies. Loan creation has just taken another major hit and falls to the levels seen right before the great recession. Trump introduces a new budget that will cut many of the entitlement programs, it won’t be pleasant but the people will need to get use to it.

End of Money Seminar – June 7, 2017

The following video was published by X22Report on May 22, 2017
Protesters want free speech and freedom of the press as they shout to close down certain news media outlets. Kim Dot Com comes forward saying he has info on the Seth Rich murder. Duterte meets Putin to sign deals. UN calls on NK to stop firing missiles. The terrorists are now leaving certain areas of Syria because they don’t have the man power to fight. Mattis says that he is going after the terrorists. This plan is different that Obama’s, Obama was choosing the targets which allowed the IS to grow on purpose. The deep state and the central bank are going after all forms of currency, cryptocurrency, gold and silver.


GOLD: $1261.60 up $7.70
Silver: $17.20 up 38 cent(s)
Closing access prices:
Gold $1260.40
silver: $17.16
Premium of Shanghai 2nd fix/NY:$9.83
LONDON FIRST GOLD FIX: 5:30 am est $1255.25
For comex gold:
For silver:
For silver: MAY
Total number of notices filed so far this month: 4573 for 22,865,000 oz

This post was published at Harvey Organ Blog on May 22, 2017.

Greek Debt Relief Deal Fails In Last Minute, As Germany, IMF Clash Again

Stop us if you’ve heard this story before.
Insolvent Greece, having last week voted itself into even more austerity in hopes of unlocking some of the money promised it by Brussels so it can then use it to repay debt maturities owed to the ECB (whether it will actually follow through with said austerity measures remains unclear, though most likely not), is dragged to the finish line of yet another Euro finance minister negotiating session with promises that this time a debt relief deal is virtually guaranteed, and then… it all falls apart.
That’s what again happened today, when Euro-area finance ministers gathered in Brussels with hopes, at least for the Greek delegation, to come home with a signed agreement, only to fail to break the impasse on debt relief for Greece, delaying the conclusion of the country’s bailout review and the disbursement of fresh loans needed to repay obligations in July.
‘The Eurogroup held an in-depth discussion on the sustainability of Greece’s public debt but did not reach an overall agreement,’ said Jeroen Dijsselbloem, the Dutch finance minister who presides over meetings with his euro-area counterparts, and who again failed to reach a solution after another hardline stance by his German colleague, Wolfgang Schauble, prevented any potential concessions. As a reminder, ever since the 3rd Greek bailout in the summer of 2015, rhe IMF and Germany have been at odds over Greece’s economic outlook and the amount of debt relief required to assure economic stability: it was the same debate, that prevented a deal from being inked on Monday.

This post was published at Zero Hedge on May 22, 2017.

Goldman Warns Of “Sharp Oil Price Drop”, Inventory Glut “If Backwardation Is Not Achieved”

Increasingly some of the more prominent sellside analysts appear to be picking and choosing ideas from their competitors. Earlier, it was JPM echoing Goldman’s reco when it cut its 10Y yield forecast. Now, in a note previewing the outcome of this week’s OPEC meeting and proposing a way forward for OPEC, Goldman’s Damien Couravlin adopted the “backwardation” idea presented last week by Morgan Stanley’s Francisco Blanch.
As a reminder, Blanch’s latest thesis on oil market dynamics, is that “OPEC’s goal for the oil market is not a specific price level, but reaching backwardation“, (which is also why he does not believe that OPEC will proceed with deeper cuts as this would likely mean ceding more market share to U. S. shale production).
Fast forward to Monday, when Goldman’s energy strategist Damien Couravlin effectively cribbed the whole note by writing that while “oil prices are rebounding with stock draws and greater certainty on an extension of the production cuts” and a “9 month extension would normalize OECD inventories by early 2018” he warns that he sees “risks for a renewed surplus later next year if OPEC and Russia’s production rises to their expanding capacity and shale grows at an unbridled rate.”

This post was published at Zero Hedge on May 22, 2017.

The Nuclear Option

As explained by Paul Craig Roberts, and unbeknownst to most, prior to the French election, and before Trump fired Comey, US neoconsevatives (neocons) in Washington threatened a pre-emptive nuclear strike on Russia – and apparently they are serious. Serious – no way right? They can’t be that crazy. Apparently such an assumption would be wrong – because they are – where they believe they can go overseas – nuke Russia (North Korea — anybody?) – and nothing will happen to them coddled comfortably in North America. What’s more, apparently they believe they can do anything they want to get ahead financially / power-wise – with no negative implications for themselves – for reals.
Now, Comey’s firing might slow things down in this regard in the near future, as the globalists / leftist / neocons will be setback somewhat, however if Trump does not maintain momentum in terms of ‘draining the swamp’, the crazed bureaucrats who have now been put on guard with Comey’s demise, will right back at it pushing their agendas (it’s already happening – see here, here, and here) – including moving America closer to war – because again – apparently these crazies think they can engineer any war untouched – in the promotion of ’empire’ – just like all the others. Americans have never fought a war with foreigners at home, unlike just about everybody else, so they have never had to live with the lasting effects when the action subsides – so they don’t know any better – assuming such concerns are even on the radar screen.
All one can say to these idiots is – try and tell that to a Russian nuke sub captain after Moscow is leveled. Something tells me New York and Washington won’t be too far behind.

This post was published at GoldSeek on 22 May 2017.

GEFIRA Responds To Soros’ Senior Officer’s “Fake News” Allegations

An answer to Constanza Hermanin of Huffington Post and formerly of Open Society
Huffington Post recently posted in its blogging section an article, by Constanza Hermanin, professor at Science Po and the College of Europe and former Open Society’s senior officer, one of George Soros’s NGOs.
The Gefira Foundation was accused in the article of being ‘Eurosceptic, pro-Russian’ and that the activities of NGOs in the Mediterranean as reported by Gefira was ”fake news”.
We are taking the time to address the accusations:
1. Euroscepticism: If Constanza Hermanin, whose curriculum boasts researching skills refined at Columbia University, UC Berkeley, Schuman Centre for Advanced Studies, the European Commission among the others, had actually bothered making a quality research, she would have found out that the Gefira Foundation was set up by Franck Biancheri to promote European integration. Franck Biancheri himself, now deceased, was a champion of European integration and collaborator in the creation of the Erasmus Project.

This post was published at Zero Hedge on May 22, 2017.

The Definition of Hypocrisy

Oh really?
RIYADH, Saudi Arabia – The World Bank announced Sunday at an event with Ivanka Trump, the U. S. president’s daughter and senior White House adviser, that Saudi Arabia and United Arab Emirates have pledged a combined $100 million to a fund that will assist women entrepreneurs and small business owners.
Oh do come on.
The social media fawning over Trump’s (and Ivanka’s) involvement in this is nauseating. And no, it has nothing to do with any parallel to the Clinton Foundation (there isn’t one) either.
It has to do with this, which the WSJ did note:

This post was published at Market-Ticker on 2017-05-22.

Generating Yield With Precious Metals

In my previous article, Being a Good Financial Steward: A Lesson from the Parable of Talents, I encouraged readers to follow the example of the good servants by finding a return on their precious metals. The good servants traded their talents (literally weights in gold and silver) in order to gain more talents.
And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. Then he that had received the five talents went and traded with the same, and made them other five talents. And likewise he that had received two, he also gained other two.’ Matthew 25:15-17
While it’s not clear what activities were in involved in the trading of these talents, we are confident that the good servants were productive. (Matthew 25:20) Comparing this with the bad servant who simply dug his talent in the ground out of fear readers are given clear examples of both productive and unproductive financial stewardship.
Being Productive by Managing our Metals (Talents)
Today, we can follow the example of the good stewards by literally trading, or managing, our precious metals.
The four primary precious metals sold are gold, silver, platinum, and palladium. All of these metals trade independently from the US dollar, and more importantly they trade independent of each other, see below.
Gold (average nominal return of 6.4% since 1960) – $1,000.00 held in gold since 1960 would be worth approx. $31,500.00 in 2016 Silver (average nominal return of 5.3% since 1960) – $1,000.00 held in silver since 1960 would be worth approx. $18,000.00 in 2016

This post was published at Schiffgold on MAY 22, 2017.

The Great Reset: How Should We Then Invest?

The Great Reset
What Happened to Deleveraging?
Unfunded Liabilities
The Unthinkable Recession
How Should We Then Invest?
Introducing Mauldin Solutions Smart Core
Orlando and SIC
‘A speculator is one who runs risks of which he is aware, and an investor is one who runs risks of which he is unaware.’
– John Maynard Keynes
‘The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment. Typically, high past returns simply imply that an asset has become more expensive and is a poorer, not better, investment.’
– Ray Dalio, founder, Bridgewater Associates, LP
This letter and next week’s will be two of the most important I’ve ever written. They will set out my philosophy about how we have to invest in the coming days and years. They are the result of my years of actually working with clients and money managers and thinking about the economic and particularly the macroeconomic world. Because of some of the developments I will be discussing, I think the future is likely to be extremely challenging for traditional portfolio allocation models. The letters also discuss my thinking on new developments in markets that allow us to more quickly adapt to our ever-shifting environment, even when we don’t know in advance what that environment will be. I hope you find the letters helpful.
Longtime readers know that this letter tends to talk more about our global economy’s problems than about its positive opportunities. That’s not to say that I ignore the opportunities. In fact, about half of my next book will focus on the tremendous potential I see developing over the next 20 years.
I am extraordinarily optimistic about the ‘human experiment’ as we move deeper into this century. I foresee more of the world lifted out of poverty and afforded more of the necessities and even the luxuries of life, a much cleaner environment, steadily decreasing warfare, and healthcare radically altered in a positive manner. I truly believe most of us will live much longer than we currently imagine. In the not-too-distant future we will conquer many of the diseases that cut life so tragically short. Given this view, how is it possible to not be optimistic?

This post was published at Mauldin Economics on MAY 22, 2017.

Can Quant Funds Trigger a Stock Market Crash?

Having surged for years, quant hedge funds dominate stock trading.
Quant-focused hedge funds – they specialize in algorithmic rather than human trading – gained $4.6 billion of net new assets in the first quarter, and now hold $932 billion, or about 30% to the $3.1 trillion in total hedge-fund assets. At the same time, investors yanked $5.5 billion out of non-quant hedge funds. This comes on top of last year when investors had yanked $83 billion out of non-quant hedge funds and had poured $13 billion into quant funds.
Trading by quant funds has soared to 27.1% of all stock market trading, up from 13.6% in 2013, according to a series of reports by the Wall Street Journal. These trades can last from minutes to months. Quant funds are different from algo-driven high-frequency trading (HFT) where trades last only milliseconds. And they’re different from ETFs which also use algorithms.
This chart shows the soaring share of trading by quant funds (red line), compared to the largest other types of investors – traditional asset managers, non-quant hedge funds, and bank proprietary trading. Another 25% to 27% of the trading is done by other investor types, including individual investors, not shown in this chart:

This post was published at Wolf Street on May 22, 2017.

JPM Cuts 10Y Yield Forecasts “Significantly Lower” Due To Weaker Inflation Outlook

Just one day after Goldman reluctantly cut its 2017 year end forecast on the 10Y yield last Friday from 3.00% to 2.75%, “reflecting some added uncertainty on the US macro outlook” while conceded that “bond bears”, i.e., those clients who have listened to it, “have had a difficult 2017″ it was JPMorgan’s turn, and over the weekend JPM announced it was adjusting its US rate forecast “significantly lower”, slashing its year end 10Y yield target to 2.75% from 3%, reflecting ‘a weaker outlook on core inflation and reduced expectations around tax reform and infrastructure spending.’
In the note by JPM’s Jay Barry, the bank also trimmed most other tenor forecasts by 15bp-35bp lower, saying that the inflation outlook ‘has changed markedly’ over past month based on weakness in core CPI in March and April. JPM also said that as for fiscal stimulus, odds are rising that it ‘gets pushed into FY18.’

This post was published at Zero Hedge on May 22, 2017.

Gold and Silver Market Morning: May 22 2017 – Gold continues consolidating in a narrowing range ahead of a strong move!

Gold Today – New York closed at $1,255.00 Friday after closing at$1,248.90 Thursday. London opened at $1,255.25 today.
Overall the dollar was weaker against global currencies, early today. Before London’s opening:
– The $: was much weaker at $1.1240 after Friday’s $1.1120: 1.
– The Dollar index was weaker at 96.94 after Friday’s 97.73.
– The Yen was weaker at 111.34 after Friday’s 111.25:$1.
– The Yuan was stronger at 6.8903after Friday’s 6.8929: $1.
– The Pound Sterling was stronger at $1.3018 after Friday’s $1.2950: 1.
Yuan Gold Fix
The Shanghai Gold Exchange trading price was not available today.
Silver Today – Silver closed at $16.84 Friday after $16.61 at New York’s close Thursday.
LBMA price setting: The LBMA gold price was set today at$1,255.25 from Friday’s $1,251.85. The gold price in the euro was set at1,117.17 after Friday’s 1,120.68.

This post was published at GoldSeek on 22 May 2017.

Trump, Watergate and Gold

Could Trump be facing his own Watergate?
The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks.
While at this point, much of the rhetoric spinning around the Beltway is political in nature, the controversy surrounding the administration still spells trouble for Trump. Even if there is no fire burning underneath the smoke, political opponents will undoubtedly leverage the chaos to slow the administration’s agenda.
Head of commodities strategy at Saxo Bank A/S in Copenhagen Ole Hansen told Bloomberg that could mean a bad news for the dollar.
It’s a political dogfight. That does mean that his ability to act as a president, and to do what he’s promised, is sharply reduced and in that lies the risk of dollar weakness.’
Trump has struggled finding footing in the political arena since he took office. Republicans still haven’t come through on their promise to repeal and replace Obamacare. And while the administration introduced an ambitious tax reform plan to much fanfare in April, little has happened since.

This post was published at Schiffgold on MAY 22, 2017.

Key Events In The Coming Week: FOMC Minutes, GDP, BOC, OPEC And More

The key highlights in the coming week are the Fed minutes, the Eurogroup meeting on Greece, the OPEC meeting and Bank of Canada rate decision. We also get GDP releases in the US, Eurozone, and UK, while a murder (or gaggle) of Fed speaker will highlight virtually every single day, starting with 4 today. Also there will be monetary policy meetings in Colombia, South Africa, Korea, Hungary, Thailand and Ukraine. Ratings in Kuwait&Qatar
In the US, key economic releases this week are the durable goods report and Q1 GDP revision on Friday. The minutes of the May FOMC statement will be released on Wednesday at 2PM. In addition, there are several scheduled speaking engagements by Fed officials this week
Detailed event breakdown:
Looking for dovish signs in the Fed minutes? The minutes on the May statement will be closely watched as the market tries to assess the potential of a communication tweak. The last statement dismissed the impact of weak 1Q GDP and March consumer inflation. With recent data being on the weak side, a dovish sign in the minutes may put emphasis on downside risks. Also watch for Eurogroup meeting on Greece and OPEC: A Eurogroup meeting is scheduled for 22 May. All eyes will be on the outcome because of Greece. Markets are optimistic that a compromise can be reached on Greece – we remain sceptical. Red lines around debt relief and IMF participation are the same and there is potential for complications in the run-up to the summer redemptions. Our commodity strategists cover the likely outcome at next week’s OPEC meeting. We think that Saudi, Russia, and most OPEC members will try sending the oil price forward curve in backwardation/ensuring no further drops in spot oil prices. Staying the course with ongoing cuts remains the most likely course of action as OPEC meets.

This post was published at Zero Hedge on May 22, 2017.