GOLD: $1316.85 UP $8.35
Silver: $17.51 UP 7 CENT(S)
Closing access prices:
Gold $1321.50
silver: $17.60
Premium of Shanghai 2nd fix/NY:$8.47
LONDON FIRST GOLD FIX: 5:30 am est $1305.80
For comex gold:
For silver:
10,905,000 OZ/
Total number of notices filed so far this month: 2181 for 10,905,000 oz

This post was published at Harvey Organ Blog on August 31, 2017.

Japan’s Second Largest Bank Plans To “Plow” 100 Billion Yen In Stocks

It used to be that just the BOJ (via ETFs) and the largest Japanese pension fund, the GPIF (the largest in the world), had an implicit green light to allocate funds (in the case of the former, created out of thin air) to equities. That is no longer the case: according to Bloomberg, Japan’s second largest commercial bank, Japan Post Bank Co., has decided to follow in the footsteps of its giant peers, and plans to “plow” an 100 billion yen ($904 million) directly buying stocks “when it finds the right opportunities.”
Unable to generate required returns through conventional means such as lending, Japan’s second-largest bank by deposits, which currently invests in equities only through passive investments in funds, plans on becoming a giant prop-trading hedge fund and aims to boost active stock holdings to several hundred billion yen in the next five to 10 years, said Katsunori Sago, executive vice president at the Tokyo-based company.
In addition to stocks, the bank is also looking to buy “more higher-yielding overseas bonds”, (although in a time when junk bonds have near record low yields, one wonders just what the bank envisions) and alternative assets as it seeks to boost growth “in an environment where returns are being depressed by the central bank’s policies of negative interest rates and yield-curve control.” The allocation change is a huge departure for the lender which hold about 2 trillion yen in stocks, however all these are non-discretionary, through passive trust investments.
Speaking to Bloomberg, Sago said that “It’s not right to only rely on passive investment for our stock holdings. At the same time, making the whole 2 trillion yen portfolio active would end up being passive anyway, so we need both passive and active portfolios to gain an edge from the active investment.’

This post was published at Zero Hedge on Aug 31, 2017.

Why Houston Doesn’t Need Federal Flood Relief – In Four Charts

In his article today, Christopher Westley noted that Texas’s economy – when measured by GDP – is larger than Canada’s. In other words: If Texas were an independent country, it would be the world’s 10th largest economy (totaling $1.6 trillion), and its citizens would be more than capable of addressing natural disasters of the magnitude of a major flood. Texas’s economy is also larger than those of Russia and Australia.
By why stop our analysis at the state of Texas? Indeed, if we look at the GDP of the Houston metropolitan area, we find it comes in at $503 billion. This total is similar to the GDPs of Poland, Belgium, and Austria. It’s significantly larger than the GDPs of Norway and Denmark.1

This post was published at Ludwig von Mises Institute on Aug 31, 2017.

Same Day FX Wars? Dollar Tumbles After Mnuchin Says “Weaker Dollar Better”, Undoing Euro Losses

The smell of currency war is rising in the air.
Less than six hours after the ECB lobbed the first trial balloon of the day, when Reuters reported that ECB policymakers were “growing worried” about the recent rapid gains in the Euro, sending the EURUSD sharply, if briefly lower, the entire move is now a distant memory following jawboning from US Treasury Secretary Steven Mnuchin, who moments ago said on CNBC that “having a weaker dollar is somewhat better for trade“, a statement which immediately spooked algos into dumping the USD…

… selling the USDJPY by 30 pips to 109.90…

This post was published at Zero Hedge on Aug 31, 2017.

US Releases 500,000 Barrels Of Oil From Strategic Reserve As Largest US Refinery May Be Shut For 2 Weeks

The U. S. Energy Department announced on Thursday that it would release 500,000 barrels of crude oil from the US Strategic Petroleum Reserve as a result of the disruption to the US petroleum industry following Hurricane Harvey amid fears of a surge in motor fuel prices, which have been compounded by the previously reported shuttering of the Colonial pipeline. According to the DOE statement, the oil will be delivered to the Phillips 66 refinery in Lake Charles, Louisiana, a plant which has not been affected by the storm.
According to Reuters, the release – the first emergency release from the reserve since 2012 – will include 200,000 barrels of sweet crude and 300,000 barrels of sour crude oil. It was an exchange agreement, meaning the government will loan crude to Phillips 66, which is required to replace the reserve’s oil at a later date.
The Energy Department ‘will continue to provide assistance as deemed necessary, and will continue to review incoming requests for SPR crude oil,’ spokeswoman Jess Szymanski said.

This post was published at Zero Hedge on Aug 31, 2017.

Living paycheck to paycheck is the way of life: New Harris poll finds that 78 percent of US workers live paycheck to paycheck.

For most Americans, living for payday is the way of life. And many use debt to bridge the gap between money hitting their bank account and the bills that need to be paid. We know since many banks make billions of dollars on people over drafting accounts. A new Harris Poll found that 78 percent of US workers live paycheck to paycheck. Now this news may be shocking to some but in reality, it is no surprise at all. How can this be if the stock market is near a record high, real estate is at record levels, and the headline unemployment rate is near record lows? Well first, most Americans don’t own stocks. Second, the homeownership rate has dropped to near generational lows. You also have nearly 95 million adults that are not part of the labor force so don’t count for employment figures. So this is why the survey results may not be all that surprising. But let us dig into the numbers a bit more.
Living paycheck to paycheck
Beyond the reality that most Americans are just getting by there are many other data points in the survey that are somewhat startling.

This post was published at MyBudget360 on August 30, 2017.

Bill Blain: “I’ve Got October 12th As The Day The Big Equity Crash Occurs”

The big risk? The ECB taper… what follows?
‘It will not always be summer; build barns.’
Today’s sermon is about complacency.
Yesterday, I read in a Fixed Income analyst comment something about the: “robust macro backdrop ahead of the ECB meeting on Sept 7th creating a solid base for risk assets and prompting a steady flow of borrowers to get funding programmes underway..” Sure enough, there is a feeding frenzy developing in the new issue bond market…
Meanwhile, my stock picking chartist Steve Previs warns the gauges he follows, like put/call ratios and VIX, reflect an ‘overly confident’ market. He thinks a top is coming.
Personally, I’ve still got October 12th at 10.30 in the morning tagged as the moment the big equity crash occurs and I get out my buying boots ready for the opportunities that will follow. (Why Oct 12th? Why not..? The date has a nice ring about it as day of manic market mayhem – and the following day is a Friday the 13th… meaning it will panic folk even more!’ Mwwwhahahaha..! )
In the fixed income markets I think we’re glossing over the likely pain to come courtesy of the ECB.

This post was published at Zero Hedge on Aug 31, 2017.

Is the US Economy Doing Just Fine?

With or without Trump’s help, the US economy is doing just fine. What does that mean for the US stock market?
Consider Urban Carmel: ‘No Reason to Suspect Bull Market Has Ended’
“The reality is that bull markets end when economic expansions end and the balance of the evidence suggests that the economy continues to expand…on something of the order of 2-3% real per annum and that’s true regardless of what data you are looking at. So…the fundamental view looks pretty good and there’s no real reason to suspect from a fundamental standpoint that the bull market has ended.”
Carmel is one of the lead writers at The Fat Pitch and, according to Business Insider, one of the most important people to follow in finance.

This post was published at FinancialSense on 08/29/2017.

Wells Fargo Increases Fake-Account Estimate 67% to 3.5 Million

O-ho the Wells Fargo Wagon is a-comin’ down the street, creating fake deposit and credit card accounts.
(Bloomberg) – Wells Fargo & Co. said employees created two-thirds more bogus accounts than initially thought, a sign the bank is still struggling to move past a scandal that sparked record fines and congressional investigations.
An outside review found an additional 1.4 million potentially unauthorized deposit and credit-card accounts opened when the bank was encouraging employees to sell multiple products to retail customers, bringing the total to about 3.5 million, according to a statement Thursday from the San Francisco-based firm. The revised estimate covers January 2009 to September 2016, almost twice as long as the period examined in the initial review.

This post was published at Wall Street Examiner on August 31, 2017.

Wells Admits It Created 1.4 Million More Fake Accounts Than Previously Thought

Remember the outrage one year ago when it was revealed that in its push to pad its top, and bottom line, Warren Buffett’s favorite bank had engaged in outright criminal account churning and “cross selling”, opening some 2.1 million unauthorized client accounts without permission (subsequently this extended to unsolicited car insurance policies extended on Wells auto loans). Well it turns out there was not nearly outrage, because as the bank revealed this morning, the “real” number was higher. 67% higher.
According to the outside review whose findings were released today, Wells Fargo said employees created two-thirds more bogus accounts than initially thought. According to the review, an additional 1.4 million “potentially unauthorized” deposit and credit-card accounts opened when the bank was encouraging employees to sell multiple products to retail customers, bringing the total to about 3.5 million, according to a statement Thursday from the San Francisco-based firm. The revised estimate covers January 2009 to September 2016, almost twice as long as the period examined in the initial review.

Wells new CEO was, predictably, all apologies:

This post was published at Zero Hedge on Aug 31, 2017.

Odds on My D.C.

First, do yourself a favor and follow me on Twitter. Dry humor putting in new highs daily.
The New York Times’ DealBook had a great piece of journalism a couple of days ago about short VIX carry monkeys. Well, that is what I call them.
The Times is more charitable, calling them VIX day traders. It does a pretty good job of capturing the VIX subculture, up to and including StockTwits, which eggs all these guys on.
The article features a former Target logistics manager who, by consistently betting that the VIX will go down, has goosed his net worth up to $12 million. He is in the process of raising $100 million for a VIX-smashing hedge fund.
I probably had about 20 readers send me this article. They are very scornful of this guy.
Is it jealousy? Not really. People who understand the dynamics of these products know that it is the definition of picking up nickels in front of a steamroller.
About those nickels…
There are two types of trades:
You risk a little to make a lot. You risk a lot to make a little. In gambling parlance, the former is ‘taking odds,’ and the latter is ‘laying odds.’

This post was published at Mauldin Economics on AUGUST 31, 2017.

Chicago PMI Refuses To Bounce After July Plunge

Following Chicago PMI’s collapse in July, August failed to provde any bounce in the soft survey data, printing unchanged at 58.9 (July was revised slightly higher).
While marking the eighteenth consecutive above-50 reading, this month’s unchanged result follows July’s sharp decline that snapped a run of five straight monthly increases in business optimism.
Only 2 components managed any improvement in August (production and new orders) with both employment and inventories weak:
Inventories fell and the direction reversed, signaling contraction Employment fell and the direction reversed, signaling contraction

This post was published at Zero Hedge on Aug 31, 2017.

“This Is A Potentially Huge Deal” – RBC Warns Dollar Reversal Risks Grow

Since the plunge following North Korea’s latest missile firing, the dollar has rocketed higher on the heels of a collapse in the JPY (BoJ?) and this morning on a dump in the EUR (after leaked jawboning from ECB) for the biggest 3 day swing since December.
Is this the start of a trend reversal in the dollar?
RBC’s head of cross-asset strategy, Charlie McElligott, believes the risks of a tactical dollar reversal are growing…
A data ‘triple-whammy,’ as
1) yesterday’s ‘big’ US data (ADP beat and + revision, along with GDP strength especially noted within the ‘Consumption’ sub-index),

This post was published at Zero Hedge on Aug 31, 2017.

Don’t Forget About Silver: Possibly the Bargain of the Century

Gold recently cracked through the $1,300 resistance level. Geopolitical instability continues to push the yellow metal higher as investors seek safe haven.
But as the spotlight shines on gold, it’s important not to forget about silver. Analysis shows it may well be the bargain of the century.
As Peter Schiff said in his most recent Gold Videocast highlighting the gold breakout, ‘$1,310 is still a low price for gold relative to where it is going. And of course, silver is an even better buy.’
In fact, silver is tremendously undervalued. In July, Peter pointed out the huge spread in the silver-gold ratio, which currently stands at over 75:1. This means you can buy almost 80 ounces of silver with one ounce of gold. Consider that the historic average ratio is around 16:1.
So, the fact that you can buy 80 ounces of silver for one ounce of gold is an incredible buying opportunity. This is silver on sale. It’s one of the greatest silver sales of all time, relative to the price of gold.’

This post was published at Schiffgold on AUGUST 31, 2017.

Crisis Mode: 100,000 Texas City Residents Lose Water Supply ‘Indefinitely’

The city of Beaumont, Texas is now in crisis mode after losing their water supply indefinitely. Residents in desperate need of clean water lined up outside of a Wal-Mart in hopes of buying bottled water, now worth its weight in gold.
Residents in an Eastern Texas city are now hoping that they can buy the water they need. The main municipal water pumps have now failed due to flooding, and there is no estimated time for repairs. Beaumont received 26 inches of rain on Tuesday, which is a city record for the most rainfall in a single day, according to the National Weather Service.
Beaumont, which boasts a population of over 100,000 people, lost both its main and secondary water supplies on Wednesday. Hurricane Harvey’s excessive rainfall caused the Neches River to overflow, which damaged the city’s water pumps, according to city officials. The city’s secondary water source, which is located at the Loeb wells in Hardin County, is also offline.

This post was published at shtfplan on August 31st, 2017.

Gasoline Prices Surge After Colonial Pipeline Shutdown, East Coast Fuel Shortages Loom

Gasoline prices have exploded higher once again this morning – topping the Maginot Line of $2.00 for the first time since July 2015 – following reports that the main conduit for fuel from the Gulf to the East Coast has been shut due to Hurricane Harvey.
Motor fuel prices climbed as much as 6.6 percent in New York, advancing for an eighth session, while crude oil was little changed. Harvey has shuttered about 23 percent of U. S. refining capacity, potentially cutting fuel-making ability to the lowest level since 2008 and depriving the Colonial Pipeline of supplies.
Its operator was forced to shut the main diesel line late Wednesday and planned to halt its gasoline line Thursday, meaning motorists from Maine to Florida may soon see higher prices at the pump.

This post was published at Zero Hedge on Aug 31, 2017.

SPX: Morphology 101

Below is a daily chart for the SPX which shows you a good example of a morphing rising wedge. As you can see there was a false breakout above the top rail and then an equal false breakout below the bottom rail, symmetry false breakouts, red circles.

This post was published at GoldSeek on 31 August 2017.

Real Personal Spending Disappoints In July, Savings Rate Tumbles To Lowest Since Dec 2016

Following June’s MoM decline in incomes, Americans saw a modest 0.4% bounce in July (better than expected). However, their spending grew less than expected (up 0.3% MoM vs 0.4% expectations).
However, real personal spending rose just 0.2% MoM in July (below expectations).
This sent the US personal savings rate down to just 3.5%, the lowest since December 2016.

This post was published at Zero Hedge on Aug 31, 2017.