GOLD: $1290.10 down $4.30
Silver: $17.58 down 9 cent(s)
Closing access prices:
Gold $1294.30
silver: $17.68
Premium of Shanghai 2nd fix/NY:$7.13
LONDON FIRST GOLD FIX: 5:30 am est $1292.79
For comex gold:
TOTAL NOTICES SO FAR: 2048 FOR 204800 OZ (6.3701 TONNES)
For silver:
For silver: JUNE
Total number of notices filed so far this month: 490 for 3,450,000 oz

This post was published at Harvey Organ Blog on June 7, 2017.

Banks Playing Same Old Game

In what should come as no surprise to anyone around here, The Banks are once again creating as much paper metal as necessary to stall an advance in price. Already twice this year we’ve seen this happen in Comex Digital Silver and now The Banks are working their alchemic magic in Comex Digital Gold, too.
Frankly, I’m not even sure why I’m taking the time to write about this. You know the drill. You know how this works. And you know how this always ends:
The Banks issue paper shorts on metal they don’t have nor do they intend to deliver. The Specs buy the contracts for metal they have no intention of ever acquiring. The Banks simply issue enough paper contracts to meet Spec demand. Eventually, Spec demand is sated and price begins to fall. As price falls, Specs sell and Banks cover…thereby closing back out all of the ill-gotten contracts. And The Banks always win because they have infinitely deeper pockets than the Specs. The Banks can simply issue as many contracts as necessary to outlast the Specs. So here are the dirty details…

This post was published at TF Metals Report on June 7, 2017.

Dow Jones News Today: Stocks Climb Before UK Snap Election

In Dow Jones news today, stocks climbed before the UK snap election. However, markets are still on edge ahead of former FBI Director James Comey’s testimony tomorrow.
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Index Closing Point Change Percentage Change Dow Jones 21,173.69 +37.46 +0.18% S&P 500 2,433.13 +3.81 +0.16% Nasdaq 6,279.38 +22.32 +0.36%

This post was published at Wall Street Examiner on June 7, 2017.

Barrage Of Billionaire Bears Predict Doom And Gloom, Refuse To Sell

Shortly after the most famous PIMCO alum, Bill Gross, unleashed today’s dose of doom and gloom when he warned that market risk is the “highest since before the 2008 financial crisis” and warned that ‘instead of buying low and selling high, you’re buying high and crossing your fingers,’ his replacement and current PIMCO CIO, Dan Ivascyn shared a similar dour outlook on the economy at the Bloomberg Invest summit, where he predicted that U. S. growth will “likely be in the mid-2% range and, given the current global fiscal and geopolitical risks, the 10-year Treasury could fall as low as 1.5%.”
The reason: policy failure by the Trump administration and the Republican-controlled Congress, which Ivascyn said are unlikely to produce sweeping tax or regulatory reform and that infrastructure spending will also be muted.
‘You’ll probably get some tax reform and it will more likely resemble a tax cut as opposed to broad-based reform,’ Ivascyn said on Wednesday. Tax changes will likely be ‘well pared down by what’s been proposed’ because Congress will be focused on revenue, he said adding that with infrastructure, ‘we’re even more pessimistic. There may be something done symbolically, but it’s going to be a lot smaller than the $1 trillion that’s been mentioned.’

This post was published at Zero Hedge on Jun 7, 2017.

Central Banks Now Own Stocks And Bonds Worth Trillions – And They Could Crash The Markets By Selling Them

Have you ever wondered why stocks just seem to keep going up no matter what happens? For years, financial markets have been behaving in ways that seem to defy any rational explanation, but once you understand the role that central banks have been playing everything begins to make sense. In the aftermath of the great financial crisis of 2008, global central banks began to buy stocks, bonds and other financial assets in very large quantities and they haven’t stopped since. In fact, as you will see below, global central banks are on pace to buy 3.6 trillion dollars worth of stocks and bonds this year alone. At this point, the Swiss National Bank owns more publicly-traded shares of Facebook than Mark Zuckerberg does, and the Bank of Japan is now a top-five owner in 81 different large Japanese firms. These global central banks are shamelessly pumping up global stock markets, but because they now have such vast holdings they could also cause a devastating global stock market crash simply by starting to sell off their portfolios.
Over the years I have often been asked about the ‘plunge protection team’, but the truth is that global central banks are the real ‘plunge protection team’. If stocks start surging higher on any particular day for seemingly no reason, it is probably the work of a central bank. Because they can inject billions of dollars into the markets whenever they want, that essentially allows them to ‘play god’ and move the markets in any direction that they please.
But of course what they have done is essentially destroy the marketplace. A ‘free market’ for stocks basically no longer exists because of all this central bank manipulation. I really like how Bruce Wilds made this point…

This post was published at The Economic Collapse Blog on June 7th, 2017.

UK General Election Preview: All You Need To Know

All you need to know about tomorrow’s general election in the UK, broken down into several parts.
From RanSquawk, Deutsche Bank, Lloyds, and WSJ
Why has a Snap Election been called?
On April 18th PM Theresa May surprised many by calling for a snap election for June 8th . May stated that her reason in doing so was to ‘strengthen her hand in Brexit negotiations’. While at the time that the snap election had being called, the Conservative party had a commanding 20ppt lead in the opinion polls, an opportunity that may not occur again. As such, a result of this size would make it harder for parliament to overthrow any deal May returns with from Brussels, potentially leading to a cleaner Brexit with the risk of a ‘no deal’ lower.
Polling Intentions
UK pollsters were originally predicting a landslide for PM May backin April, subsequently leading many to believe that the risk surrounding the election is relatively low, with the Conservative party seen increasing their current majority by some 75-125 seats. However, a notable shift in the polls has been observed since the release of both the Conservatives and Labour parties’ manifestos, moving in favour of the latter. In turn, this has resulted in some modest pullback from 2017 highs in recent weeks and somewhat elevating the risk regarding the election with some polls narrowing the Conservatives lead to as low as 4ppts. However, given the recent performance of UK pollsters over the 2015 election and EU referendum, they could be taken with a pinch of salt.

This post was published at Zero Hedge on Jun 7, 2017.

Financial Fragility Reaching a Critical Mass

There are several key factors that have contributed to the financial fragility of the masses and our economy today. First, is that over the past 30 years, globalization and technology have helped to reduce the number of middle-class jobs available domestically. Fewer jobs and superfluous workers have led to stagnating incomes for most. At the same time, living expenses for critical services that are domestically-produced like education, medical services, child-care, housing and fresh food have all strongly outpaced income gains.
Today a middle-class lifestyle in America (ie., comfortable housing, transportation, food, health care and one family vacation a year), is estimated to require about 130k of annual household income for a family of 4. The median US household income, however – at 50k a year – is less than half the funds needed. In Canada, estimates of ‘middle class’ expenses vary in the range of 50-100k a year (see: Just who are middle-class). According to the latest 2014 StatsCan census, the median Canadian household income was $78,870.
To plug spending deficits over the past 3 decades, families have increasingly added debt. American households now owe a record $12.7 trillion and Canadians $2 trillion, as of Q1 2017. Not only does servicing this debt further diminish disposable cash flow, but it also keeps people from building up net savings from their income.

This post was published at FinancialSense on 06/07/2017.

Stocks and Precious Metals Charts – Tenacious D

“The dictatorship, and the whole process of its coming into being, was above all diverting. It provided an excuse not to think for people who did not want to think anyway. I do not speak of your ‘little men,’ your baker and so on; I speak of my colleagues and myself, learned men, mind you. Most of us did not want to think about fundamental things and never had. There was no need to.
Milton Mayer, They Thought They Were Free: The Germans 1933-1945
“Representative institutions no longer represent voters. Instead, they have been short-circuited, steadily corrupted by an institutionalized system of bribery that renders them responsive to powerful interest groups whose constituencies are the major corporations and wealthiest Americans. The courts, in turn, when they are not increasingly handmaidens of corporate power, are consistently deferential to the claims of national security…”
Sheldon Wolin, Inverted Totalitarianism
“It seems that under the overwhelming impact of rising power, humans are deprived of their inner independence and, more or less consciously, give up establishing an autonomous position toward the emerging circumstances.
The fact that the foolish person is often stubborn must not blind us to the fact that he is not independent. In conversation with him, one virtually feels that one is dealing not at all with him as a person, but with slogans, catchwords, and the like that have taken possession of him.

This post was published at Jesses Crossroads Cafe on 07 JUNE 2017.

The Next Massive Wave of Unemployment

‘There’s no question that self-driving cars are coming,’ Business Insider declares. ‘The real debate at this point is who will get there first.’
We understand up to 19 companies are competing to field self-driving cars by 2021 – less than four years from now.
We’d trust a driverless car about as much as we’d trust Mr. Madoff with our money.
But its drummers insist the computerized driver will vastly outperform the human pilot.
The silicon captain will go the speed limit… stop at stop signs… and yield to pedestrians.
It won’t be plowing into your bumper because it’s texting its boyfriend or necking its girlfriend.
We’ve been assured its blood alcohol content will never exceed the legal limit.
The consulting firm McKinsey & Co. estimates the computerized driver could actually reduce U. S. road accidents by 90%.
Just so.

This post was published at Wall Street Examiner on June 7, 2017.

Market Confirms ‘No Smoking Gun’ In Comey Testimony – Stocks Up, Gold Down

Market's take: stupid but not impeachable
— Ed Bradford (@Fullcarry) June 7, 2017

It would appear – despite the media bluster – that markets are quickly convinced that Comey’s prepared remarks have no “smoking gun” and nothing new to warrant concerns about President Trump’s presidency…
This is the statement that appears to have defused the concerns…
I immediately prepared an unclassified memo of the conversation about Flynn and discussed the matter with FBI senior leadership. I had understood the President to be requesting that we drop any investigation of Flynn in connection with false statements about his conversations with the Russian ambassador in December.

This post was published at Zero Hedge on Jun 7, 2017.

All About Inventory

Andy Hall has been called the God of Oil. As chief of Astenbeck Capital, he has proven at times that even gods can be mortal. In the ‘rising dollar’ period, for example, after making money on the way down Mr. Hall went bullish. That was March 2015:
We suspect their projection of current prices into the future will again be frustrated by the market. For that reason we have closed out all of our bearish bets (at a substantial profit) and started adding to our bullish ones. We might be premature but think the chance of seeing new lows for oil prices – other than possibly at the very front of the curve – is relatively small even though volatility is likely to remain high in the coming months.
In the more than two years since then, Hall has remained steadfast about $100 oil – even as it went to $26. At that time in early 2015, under much the same calm as now, it appeared to be a possibility, perhaps likely. The ‘rising dollar’ was really two events separated by several months (and Chinese currency machinations). What was the calm in between them, which allowed for WTI to climb all the way back above $60 from a then low of around $43, did for a time look like ‘transitory’ weakness.

This post was published at Wall Street Examiner on June 7, 2017.

We Just Had A Bank Bail-In, Anyone Paying Attention – Episode 1300a

The following video was published by X22Report on Jun 7, 2017
Retail sales are down in the UK, inflation rising and spending is down. Sears is closing another 66 stores and the retail apocalypse take hold. Older Americans need to work because of zero interest rates, inflation and the devaluation of the dollar, by doing this the younger generation is finding it hard to find those part-time jobs. The stock market is repeating what we saw back in 2000 and 2006, and we know how that ended, in a crash of the market and a recession. Spain’s Banco Popular just did a bail-in and it was purchased by Santander. China signaled they were going to purchase Treasuries and this might have been agreement that Trump made during the meeting with Xi Jin Ping.

Saudi America – How New Tech Is Creating Another Oil Boom

Just when you thought there couldn’t be any more oil in Texas … new technology is about to unlock an extremely shallow field that is brimming with heavy oil that has been impossible to recover–until now.
Many oil companies have spent many millions of dollars trying to unlock this gem, but expensive steam injections weren’t efficient enough to make it competitive or economic, even if they had succeeded.
While steam injections cost $50 per barrel, the new technology lifts the oil at under $10 per barrel – an astounding savings, even if oil prices crashed to lows not seen since the late 90s.
This dramatically reduced cost of extraction should send the Saudis back to the OPEC negotiating table in a panic.
But this is the story of Petroteq Energy – a small company with huge ambitions to become a driving force of a brand new chapter in the American oil revolution …
The Field of Dreams
The Texas Permian Basin has been producing oil for almost 100 years, but geological assessments show that even though billions of barrels have already come out of this sleeping giant, billions more are still waiting to be pumped.

This post was published at Zero Hedge on Jun 7, 2017.

CoCo Loco! Spain’s Banco Popular Plunges, Suspended By Regulator and Sold To Banco Santander For 1 Euro

Spanish bank, Banco Popular, has been declining in price for some time thanks to plunging earnings.
Banco Popular’s bad loans totaled 35.7 billion euros ($38 billion) at 4Q, not a good sign. Flagging earnings and $38 billion in bad debt has resulted in declining stock prices and trading suspended by their regulator.
And The Single Resolution Board agreed to the sale of Banco Popular for One Euro to Banco Santander. But even at One Euro, Banco Santander is not seeing any ‘bargain surge.’

This post was published at Wall Street Examiner on June 7, 2017.

Something Changed In 2014

For all the talk about the various “tools” in central bankers’ arsenals to influence monetary policy, to manipulate stock markets and to soak up global bonds (they now hold more than a third of the total $54 trillion in in global bonds), the fundamental – and very simple – purpose of any “developed” central bank is one: to restore and boost consumer (and in recent years investor) confidence during times of stress, promoting a vibrant economy in which the velocity of money is high, where commerce and economic transactions are ample, and where inflation (at least in a Keynesian world) is sufficiently high to gradually inflate away the debt burden and reduce the incentive to save. Boost confidence, the thinking goes, and everything else will follow from there.
And while that may historically have been the case, something changed significantly in 2014.
This is obvious from one chart in the latest OECD Economic Outlook report issued earlier today, which shows that while consumer and the all important business confidence do indeed go hand in hand…

This post was published at Zero Hedge on Jun 7, 2017.

Gold Market Morning: June-7-2017: Gold pausing before tackling $1,300!

Gold Today – New York closed at $1,293.80 yesterday after closing at $1,279.60 Monday. London opened at $1,292.65 today.
Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
– The $: was slightly weaker at $1.1254 after yesterday’s $1.1246: 1.
– The Dollar index was slightly weaker at 96.68 after yesterday’s 96.73.
– The Yen was stronger at 109.30 after yesterday’s 109.52:$1.
– The Yuan was stronger at 6.7931 after yesterday’s 6.7954: $1.
– The Pound Sterling was slightly weaker at $1.2898 after yesterday’s $1.2904: 1.
Yuan Gold Fix
New York rose to the same level as Shanghai yesterday. Today, Shanghai is pausing at the same level. London opened at almost the same level as Shanghai.
Once again we see all three centers with gold prices at the same level. This is only the second time this has happened. The first was in the last month.
Silver Today – Silver closed at $17.69 yesterday after $17.57 at New York’s close Monday.

This post was published at GoldSeek on 7 June 2017.

Next Asset Bubble Cracks: It’s so Big even the Fed is Fretting

Commercial Real Estate’s boom-and-bust cycle heads south.
Commercial real estate’s eight-year boom reached such breath-taking levels that even the Fed has been pointing it out as one of the reasons for tightening monetary policy. The Fed is worried because of the size of the sector, its leverage, and what it did to the banks during the Financial Crisis. And now commercial real estate prices are heading south once again.
Green Street’s Commercial Property Price Index, which tracks the value of property owned by real-estate investment trusts, fell 0.4% in May to the lowest level since May 2016:

This post was published at Wolf Street on Jun 7, 2017.

S&P Downgrades Qatar To AA-, Credit Risk Spikes To 2017 Highs

Citing expectations of notable slowing in economic growth andconcerns about fiscal and current account deficits widening, S&P has downgraded Qatar from AA to AA- as credit risk premia hit 2017 highs.
Qatar credit risk is at 2017 highs (but remains well below Jan 2016 recent highs…
Full Statement from S&P…
On June 5, 2017, a group of governments including Saudi Arabia, United Arab Emirates, Bahrain, Egypt, Libya, and Yemen moved to cut diplomatic ties, as well as trade and transport links with Qatar. We believe this will exacerbate Qatar’s external vulnerabilities and could put pressure on economic growth and fiscal metrics. We are therefore lowering our long-term rating on Qatar to ‘AA-‘ from ‘AA’ and placing it on CreditWatch with negative implications. The negative CreditWatch encompasses numerous downside risks to the rating as a consequence of recent events, reflecting that we could lower the ratings if domestic political risks were to substantially increase or if government indebtedness increases materially quicker than we currently expect. We could also lower the ratings if our assessment of contingent liabilities from the banking system or the government’s related entities were to increase, or if Qatar’s external financing lines were withdrawn.

This post was published at Zero Hedge on Jun 7, 2017.