Over the last 150 years, the West has gone from human slavery to debt slavery. Slavery was officially outlawed in most countries between the mid 1800s and early 1900s. In the British Empire, it was abolished in 1834 and in the US in 1865 with the 13th amendment.
But it didn’t take long for a different and much more subtle form of slavery to be introduced. It started officially in 1913 with the creation of the Federal Reserve Bank in New York. More than 100 years before that, the German banker Mayer Amschel Rotschild had stated: ‘Give me control of a nation’s money and I care not who makes its laws.’ The bankers who gathered on Jekyll island in November 1910 were totally aware of the importance of controlling the country’s money and that was the objective of their infamous secret meeting which laid the foundations to the Fed. The Fed is officially the Central Bank of the USA but it is a private bank, owned by private banks and for the benefit of private banks and bankers.

This post was published at GoldSwitzerland on August 4, 2017.

Stocks and Precious Metals Charts – Standing Before the Nation With Judgement

“And they healed the pain of my people disgracefully, saying ‘peace and prosperity,’ when there was no peace or prosperity.”
Jeremiah 6:12
The Non-Farm Payrolls came in ‘better than expected,’ as long as one did not look too closely, and not distinguish between low-paying, part time jobs versus jobs that carry a living wage that would enable further economic expansion.
Judgement and justice are long overdue – but they are coming.
The highlight for next week will be the Producer and Consumer inflation figures.

This post was published at Jesses Crossroads Cafe on 06 AUGUST 2017.

FX Week Ahead Preview: Negative USD Sentiment Tamed For Now

We got some encouraging signs from the latest US payrolls report on Friday, with the earnings component edging up to 0.3% on the month, to lift the year on year rate to 2.5%. Even so, this is one month’s set of data, and is unlikely to convince USD bears that the rate path espoused by the Fed is still firmly ‘on track’, and in the wake of the numbers, the odds of another 25bp hike by end of year remain close to 50/50. It does however mean that the one way traffic can ease off a little, so whatever your thoughts on the economy further down the line, we can expect to see a little more ebb and flow in the price action for the majors, with the USD index surviving a test on the key support levels into 92.00.
On the data releases next week, we get a little more on the jobs market as Monday offers up the CB employment trends index, along with Fed Labour Market conditions. JOLTS on Tuesday is also one to watch out for, but non farm productivity on Wednesday could add a little more insight on wage growth if this improves. Fed chair Yellen (amongst others) often cites the tight correlation between productivity and wages, so we have been keeping an eye on this on. Even so, the algos are more likely to react to the top tier numbers, and on Friday, the Jul inflation stats, with consensus looking for the headline year on year rate to pick up a few notches from the 1.6% print for Jun. The core rate is expected to hold 1.7%.
Underlining the turnaround in the greenback was the sharp reversal in EUR/USD, failing to reclaim the 1.1900 level and eventually getting dragged back under 1.1800 to test the low 1.1700’s late Friday. At these levels, buyers stepped in ahead of the 1.1710-15 ‘breakout point’ which suggests to some that we are about to establish a new trading range. This may be a little premature and simplistic, and we would not rule out a deeper retracement – as we expect to see elsewhere to varying degrees – but we can assume 1.2000 will be a tough ask at this stage unless we get fresh European data to turn the tide again.

This post was published at Zero Hedge on Aug 6, 2017.

The United States Of Unicorns

The United States is home to 105 unicorn companies valued at $1B+.
As of 7/25/2017, reports that six private US companies are worth over $10B. The two most valuable unicorns in the US are Uber ($68B) and Airbnb ($29.3B). Palantir Technologies and WeWork, both valued at $20B, are tied for third.
Of the top four highest valued, only WeWork (which is based in NYC) is headquartered outside California.
California has the highest unicorn ‘population’ of any US state by far, with 62 billion-dollar startups inside its borders. New York ranks second with 15, followed by Massachusetts and Illinois with five each. Eight other states and the District of Columbia are also home to at least one company worth $1B+.

This post was published at Zero Hedge on Aug 6, 2017.

Puplava: We’re in the Final Phase of Another Market Bubble

Over the past two decades we’ve seen two major bubbles develop: the internet bubble, which burst in March 2000, followed by the real estate and mortgage bubble, which burst in 2007.
Now, we’re entering a stock market bubble in a manner we haven’t seen before, said Jim Puplava, founder of Financial Sense, in a recent podcast, Anatomy of a Bubble.
Bubble Stage One
It all begins with an attention-grabbing idea, Puplava stated.
‘For bubbles to take place, what you usually see throughout history is suddenly the whole community becomes fixated on one object and they go mad in pursuit,’ he said. ‘Millions of people become simultaneously impressed with one illusion, which develops into a delusion.’
We’ve seen this play out throughout history, with the Tulip Mania in the 1600s or, more recently, with internet stocks and real estate.
As the bubble forms, what fuels it is the prospect of imaginary wealth. The public becomes infatuated with the idea that promises fast, easy money, Puplava stated.
Next, the idea becomes widely publicized, and this publicity reinforces the idea, which begins to transform into an illusion. Next, cheap money and credit fuel its rise.

This post was published at FinancialSense on 08/03/2017.

Legg Mason Survey Finds Baby Boomers Are Roughly $30 Trillion Short On Retirement Savings

There are roughly 76 million Baby Boomers in the United States that are about to transition out of the highest wage earning years of their lives and into retirement where they’ll be making precisely nothing. Unfortunately, as MarketWatch points out today, those Baby Boomers are woefully unprepared for what awaits them.
According to Legg Mason, the average Baby Boomer needs roughly $650,000 to fund their retirement years but have only managed to save about about $250,000 in their defined contribution plans. Now, while equity markets don’t seem to think this is a big deal, someone will eventually have to cover that $30 trillion shortfall…and, we suspect that’s a funding hole that even the American taxpayers can’t cover.
Baby boomers, or those born between 1946 and 1964, expect they’ll need $658,000 in their defined contribution plans by the time they retire, but the average in those employer-sponsored plans is $263,000, according to a survey of 900 investors by financial services firm Legg Mason. Older boomers, who are 65 to 74, have an average of $300,000. Their asset allocation for all of their investments are also conservative, according to QS Investors, an investment management firm Legg Mason acquired in 2014, with 30% in cash, 24% in equities, 22% in fixed income, 4% in non-traditional assets, 8% in investment real estate, 2% in gold and other precious metals and 8% in other investments.

This post was published at Zero Hedge on Aug 6, 2017.

Morgan Stanley Asks At What Point Will EURUSD “Breathlessness Turn Into Outright Altitude Sickness”

In Morgan Stanley’s “Sunday Start” note, the bank’s chief European economist, Elga Bartsch, looks at the recently surging EUR, where net spec positioning remains near the most bullish level in the past 6 years…

… notes that according to the bank’s currency expects, the “bull case of 1.28 for EURUSD looks increasingly likely”, but wonder “at what point a bit of breathlessness could turn into outright altitude sickness.”
Here is MS’ latest take on “what’s next in global macro” with a focus on the common currency.
Climbing Mountains or Walking Hills
You don’t have to climb one of the mountain peaks in the Alps to feel a bit breathless this summer. Watching the euro climb further might already suffice if you are an investor. And we might not be near the peak yet. According to our currency experts, their bull case of 1.28 for EURUSD looks increasingly likely, even with Friday’s relatively solid US employment report. Investors will therefore be wondering at what point a bit of breathlessness could turn into outright altitude sickness. For now, the ECB seems unconcerned about the strength of the euro, largely because it is reflecting stronger economic fundamentals and better prospects for political reforms. While it is clear that the euro area economy has shifted into higher gear, it remains to be seen whether reforms will able to make a quantum leap.

This post was published at Zero Hedge on Aug 6, 2017.

China’s Minsky Moment Is Imminent

Crescat Capital’s Q2 letter to investors shouold be retitled “everything you wanted to know about the looming bursting of the world’s biggest credit bubble… but were afraid to ask…” Don’t say we didn’t warn you…
History has proven that credit bubbles always burst. China by far is the biggest credit bubble in the world today. We layout the proof herein. There are many indicators signaling that the bursting of the China credit bubble is imminent, which we also enumerate. The bursting of the China credit bubble poses tremendous risk of global contagion because it coincides with record valuations for equities, real estate, and risky credit around the world.
The Bank for International Settlements (BIS) has identified an important warning signal to identify credit bubbles that are poised to trigger a banking crisis across different countries: Unsustainable credit growth relative to gross domestic product (GDP) in the household and (non-financial) corporate sector. Three large (G-20) countries are flashing warning signals today for impending banking crises based on such imbalances: China, Canada, and Australia.

This post was published at Zero Hedge on Aug 6, 2017.

Gold Has Outperformed Stocks this Century

July was a good month for gold. The yellow metal was up 2.1% on the month, driven in large part by a weakening dollar and political uncertainty in the US. In fact, it’s been a good year for gold so far. It’s up just over 10% to date.
This is great, but we’re taking a pretty short-term view here. What do things look like if we step back and take in a broader perspective?
It’s been a pretty good century for gold.
It’s easy to get caught up in the day-to-day fluctuations in the price of gold and lose sight of the bigger picture. And when it comes to investing that big picture is key. The price of gold tomorrow probably doesn’t matter too much to you. But the price of gold in 10 years – that might be a bit more significant.
All eyes have been on the stock market over the last several months. The Dow cracked 22,000 this week. Mainstream pundits are giddy. Meanwhile, as an article in Forbes pointed out, gold has actually outperformed the stock market so far this century.

This post was published at Schiffgold on AUGUST 4, 2017.

Metals Break Out Now Or In A Few Weeks?

This past week, the GDX has finally taken out its resistance at 22.65, and provided us with some semblance of an impulsive structure off the recent lows. However, the micro structure it is not the cleanest of structures, similar to silver.
Yet, as long as the metals do not break below their July lows, we are again set up to see a massive break out. While I still cannot tell you if the metals will take advantage of that set up, as they failed to do so the last time we had a break out set up, if they do not take advantage of this set up within the next few weeks, we could see a major failure to launch take hold, and drop us lower than the bulls would care for. So, it seems it’s time for the metals to step up.
While we were appropriately looking for a bottoming in the complex in early July, the rally we have seen in GDX and silver have been quite lackluster from an Elliott Wave perspective. I still have no standard impulsive structure adhering to Fibonacci Pinball in either of those charts. However, what could reconcile those charts is if the market has developed as a series of 1’s and 2’s off the lows, suggesting that a major breakout could be imminent.

This post was published at GoldSeek on 4 August 2017.

Dumb – And Dumber – Money Keeps Pouring In

Someday, stock, bond and real estate valuations will matter again. And the mechanism by which this return to sanity is achieved will probably be the torrent of money now flowing in from people who, for various reasons, don’t care about (or understand) the prices they’re paying.
Millennials, for instance, seem to have reached the ‘beginners’ mistakes’ phase of their financial lives. They’re major buyers of recreational vehicles – see The Perfect Crash Indicator Is Flashing Red – and are now opening stock brokerage accounts at a startling pace:
Schwab: ‘New Accounts Are At Levels We Have Not Seen Since The Dot Com Bubble’ As Millennials Rush Into Stocks
(Zero Hedge) – In its Q2 earnings results, [stock broker Charles] Schwab reported that after years of avoiding equities, Schwab clients opened the highest number of brokerage accounts in the first half of 2017 since 2000. This is what Schwab said on its Q2 conference call:New accounts are at levels we have not seen since the Internet boom of the late 1990s, up 34% over the first half of last year. But maybe more important for the long-term growth of the organization is not so much new accounts, but new-to-firm households, and our new-to-firm retail households were up 50% over that same period from 2016.

This post was published at DollarCollapse on AUGUST 6, 2017.

Chapter 52: Ethics vs. Efficiency

Christian Economics: Teacher’s Edition
‘And if you faithfully obey the voice of the Lord your God, being careful to do all his commandments that I command you today, the Lord your God will set you high above all the nations of the earth. And all these blessings shall come upon you and overtake you, if you obey the voice of the Lord your God. Blessed shall you be in the city, and blessed shall you be in the field. Blessed shall be the fruit of your womb and the fruit of your ground and the fruit of your cattle, the increase of your herds and the young of your flock. Blessed shall be your basket and your kneading bowl. Blessed shall you be when you come in, and blessed shall you be when you go out (Deuteronomy 28:1 – 6). The various ways in which the knowledge on which people base their plans is communicated to them is the crucial problem for any theory explaining the economic process, and the problem of what is the best way of utilizing knowledge initially dispersed among all the people is at least one of the main problems of economic policy – or of designing an efficient economic system. – F. A. Hayek, ‘The Use of Knowledge in Society’ (1945).
AnalysisEthics vs. efficiency: this debate occurs in every social system, every ethical system, and every economic system. It is the debate over the twin meanings of the word ‘right.’ The word has two meanings: one ethical, the other technical. So does the equivalent word, ‘good.’ Here are the two meanings:
Ethics: ‘Do the right thing.’
Efficiency: ‘Do the thing right.’
Because of the common grace of God – and only because of it – people want to believe that the ethical system they were taught as children, and which they now teach to their children, is both accurate and reliable. They were taught that doing the right thing leads to greater wealth in the long run. They believe the words of Benjamin Franklin: ‘Honesty is the best policy.’ Franklin was on his way to becoming the richest non-slave-holding man in the North American British colonies when he wrote that in the mid-eighteenth century. The phrase had been around for well over a century.

This post was published at Gary North on August 04, 2017.

Not All Capital Is Equal; Some Is Destructive

Financialization incentivizes hot money capital flooding into speculative credit-asset bubbles.
When we speak of capital investments and capital flows, it’s presumed all the capital being referenced is equal: a dollar is a dollar, wherever and whenever it’s put to use. But not all capital is equal, and that is one reason why the global financial system is far more fragile than the mainstream media lets on. Metrics such GDP (gross domestic product) don’t reflect the differences in the capital sloshing around the global economy. In the “happy story” of classical capitalism, capital flows to productive investments: the construction of needed homes, assembly of new factories, etc.–activity that returns a profit to the owners of capital and generates value and employment by filling scarcities or by increasing productivity and thus wealth. In this “happy story” of classical capitalism, banks (and those with savings) distribute credit and saved capital to those with the most attractive creditworthiness for the lowest-risk, highest-return ventures–ventures that are presumed to be productive for end users and society at large.

This post was published at Charles Hugh Smith on SUNDAY, AUGUST 06, 2017.

NRA’s Dana Loesch To The New York Times: “We’ve Had It With Your ‘Fake News’, We’re Coming For You”

Conservative political pundit and National Rifle Association spokeswoman Dana Loesch took on The New York Times in an epic new video posted by the NRA in which she vows to “fisk the New York Times” just before concluding “in short, we’re coming for you.”
“We the people have had it. We’ve had it with your narratives, your propaganda, your ‘fake news’.”
“We’ve had it with your constant protection of your democrat overlords. Your refusal to acknowledge any truth that upsets the fragile construct that you believe is real life.”
“And we’ve had it with your pretentious, tone-deaf assertion that you
are in any way truth or fact-based journalism.”
“Consider this a shot across your proverbial bow.”
“We’re going to fisk the New York Times and find out just what deep rich means to this old grey hag, this untrustworthy, dishonest drag that has subsisted on the welfare of mediocrity for one, two, three, more decades?”
“We’re going to laser-focus on your so-called ‘honest pursuit of truth.’ In short, we’re coming for you.”

This post was published at Zero Hedge on Aug 5, 2017.

Gold Consolidates On 2.5% Gain In July After Dollar Has 5th Monthly Decline

– Gold consolidates on 2.5% gain in July as the dollar has fifth monthly decline
– Trump administration and vicious ‘civil war’ politics casting shadow over America and impacting dollar
– All eyes on non farm payrolls today for further signs of weakness in U. S. economy
– Gold recovers from 1.7% decline in June as dollar falls
– Gold outperforms stocks and benchmark S&P 500 YTD
– Gold gains 10.8% versus 10.6% gain for S&P – led by frothy tech sector (see performance table)
– Gold outperforms stocks globally – Euro Stoxx 50 up 5.7% ytd, FTSE up 4.8% and Nikkei up 4.5%
– Gold’s technicals increasingly positive; now trading above its 50-day & 200-day moving averages & looks set to target $1,300 again
Gold held steady today in Asian and European trading and was flat for the week, consolidating near the $1,270 per ounce level and the 2.5% gain seen in July.
It remains close to a seven-week high hit this week, as the dollar remains weak and vulnerable near multi-month lows after five consecutive months of declines.
The dollar index, which tracks the greenback against a basket of six major peers, is languishing near 15-month lows hit earlier this week.
‘All eyes’ are again on the monthly U. S. nonfarm payrolls data due today amid continuing very high levels of U. S. and global political uncertainty.

This post was published at Gold Core on August 4, 2017.

Market Report: A week of consolidation

Gold and silver consolidated recent rises this week. On closing prices, gold barely moved from last Friday’s close, standing at $1269.50 in early European trade this morning. Intraday, prices were range-bound, capped in the low $1270s and underwritten in the low $1260s. The bias seems to be one of trying to break out, in which case an assault on the $1290-1300 level is in prospect.

This post was published at GoldMoney on August 04, 2017.