Asian Metals Market Update: August-28-2017

This is a big week for the US dollar. As usual the US August nonfarm payrolls (NFP) will decide the possibility of a December interest rate hike. Over the past two months gold and silver have always fallen after the release of NFP, only to pare most of their losses the following week. Political news after the release had nullified the effects of NFP. If the trend of the past two months happens over the next seven days then Gold and silver can rise till the NFP and thereafter see a sharp fall and then begin the journey for another short term bull run.
Only two speed breaker I see for gold and silver. First is an NFP August number over 250,000 and with upward revision of previous month numbers.

This post was published at GoldSeek on 28 August 2017.

As Gold Outperforms Stocks, Mainstream Starting to Sit Up and Take Notice

Earlier this month, we reported that gold has outperformed stocks so far this century. If we index both gold and the S&P 500 to 100 as of Dec. 31, 1999, gold has returned 86% more than the market.
Gold also looks good on a shorter timeline. Despite Dow Jones records that have kept all eyes focused on the meteoric rise of the the S&P 500, gold has actually outpaced stocks in 2017. Now the mainstream is starting to sit up and take notice.
A CNBC article Friday noted ‘gold is doing something unusual and quite bullish.’
With a 12.2% year-to-date rally for gold futures and a 9.3% year-to-date rise for the S&P 500, 2017 is set to be the first year in which the yellow metal has beaten stocks since 2011. In that year, gold advanced 10.2% while the S&P 500 finished flat.’
CNN also jumped on the gold bandwagon, reporting the yellow metal has outpaced the stock market in a battle between ‘fear and greed.’

This post was published at Schiffgold on AUGUST 28, 2017.

Global Stock Markets Weaker; Euro Currency Hits 2.5-Year High

(Kitco News) – World stock markets were mostly lower to start the trading week. Traders and investors were disappointed that last week’s Jackson Hole, Wyoming central bankers meeting did not offer any new guidance on the monetary policies of the world’s major central banks. U. K. markets are closed Monday for a holiday. U. S. stock indexes are pointed toward weaker openings when the New York day session begins.
Gold prices are higher and have pushed above the key $1,300.00 level in overnight trading. A slumping U. S. dollar index is supporting the gold market bulls.

This post was published at Wall Street Examiner on August 28, 2017.

US Debt Ceiling, The Wall, Runaway Spending, & The Lack Of Evidence Of Concern… So Far

The US Statutory Debt Limit, a failed tool to halt the endless growth of Federal debt issuance, is once again in play at nearly $20 trillion. It was only at $6 trillion in 2002.
The problem, of course, is runaway Fed spending which is currently at around twice that of Federal current tax receipts, requiring that the deficit be funded by issuing Federal debt (or raising taxes and/or cutting Federal spending).
The staggering increase in Federal debt starting in 2007 also resulted in a large spike in public debt to GDP.

This post was published at Zero Hedge on Aug 28, 2017.

Economics and Humanity

It is customary to find fault with modern science because it abstains from expressing judgments of value. Living and acting man, we are told, has no use for Wertfreiheit; he needs to know what he should aim at. If science does not answer this question, it is sterile. However, the objection is unfounded. Science does not value, but it provides acting man with all the information he may need with regard to his valuations. It keeps silence only when the question is raised whether life itself is worth living.
This question, of course, has been raised too and will always be raised. What is the meaning of all these human endeavors and activities if in the end nobody can escape death and decomposition? Man lives in the shadow of death. Whatever he may have achieved in the course of his pilgrimage, he must one day pass away and abandon all that he has built. Each instant can become his last. There is only one thing that is certain about the individual’s future–death. Seen from the point of view of this ultimate and inescapable outcome, all human striving appears vain and futile.
Moreover, human action must be called inane even when judged merely with regard to its immediate goals. It can never bring full satisfaction; it merely gives for an evanescent instant a partial removal of uneasiness. As soon as one want is satisfied, new wants spring up and ask for satisfaction Civilization, it is said, makes people poorer, because it multiplies their wishes and does not soothe, but kindles, desires. All the busy doings and dealings of hard-working men, their hurrying, pushing, and bustling are nonsensical, for they provide neither happiness nor quiet. Peace of mind and serenity cannot be won by action and secular ambition, but only by renunciation and resignation. The only kind of conduct proper to the sage is escape into the inactivity of a purely contemplative existence.

This post was published at Ludwig von Mises Institute on August 28, 2017.

Gold Market Charts – August 2017

The August wrap-up of BullionStar’s monthly gold charts column looks at the latest data for Chinese gold demand, Indian gold imports, Swiss gold imports and exports, and Russian official gold reserve accumulation.
Separately, note that BullionStar’s website offers a range of dynamic charts under the BullionStar Charts menu. The data underlying these charts spans precious metals, major currencies, stock indices and major stocks, and also charting of BullionStar bullion products. Charting utilities on the BullionStar Charts page allows every asset / financial instrument featured to be measured in terms of every other asset or instrument featured.
Shanghai Gold Exchange (SGE) gold withdrawals Physical gold withdrawals from the Shanghai Gold Exchange are a good proxy of wholesale gold demand in mainland China. Why this is so is explained in Koos Jansen’s articles and also in summary article in the BullionStar Gold University titled “The Mechanics of the Domestic Chinese Gold Market.”
During July, gold withdrawals from the SGE gold vaulting network across China totalled 144.7 tonnes, which was the second lowest SGE monthly gold withdrawals so far this year.

This post was published at Bullion Star on 27 Aug 2017.

James Howard Kunstler: It’s Time To Be Honest With Ourselves

The ever-eloquent James Howard Kunstler returns to our podcast this week to discuss the dangers of the ‘comprehensive dishonesty’ he observes in our culture today.
We occupy ourselves with distractions (e.g., the fear du jour that our media continually manufactures) and diversions (e.g., our empty social media addiction), while ignoring the erosion of the essential systems around us. Making matters worse, the leaders we assume are focusing on these issues aren’t or are woefully out of their depth.
It’s time for society to take a hard look in the mirror and be honest about the shortcoming it sees. Identifying them then opens the door to deciding what to do about them.
Without the courage to be honest, we condemn ourselves to a failing status quo that likely has little remaining time left:
What we’re seeing is the result of behavior of people who have no idea what they’re doing. Most of the major systems that we rely on are entering a state of failure of one kind or another. And, of course, the larger problem is that they’re interlinked, and that their failures will be mutual and self-amplifying.
These systems include the energy system that has powered industrial civilization, the oil and gas industries which you’ve talked about a lot and I think that our listeners understand pretty well — although the finer points of it, like the ‘energy return on investment’, is something that’s certainly not understood by the general public, or most of the officers in our government, and certainly not in the New York Times, Washington Post or other major media outlets. They just don’t get that.

This post was published at PeakProsperity on Sunday, August 27, 2017.

The Gold-Bond Correlation And Other Macro Observations

We have posted several pieces over this year noting the high correlation of gold and 10-year bond futures. See here, here and here.
Here is how the gold ETF (GLD) and the Treasury ETF (TLT) have moved together over various periods. The data show the correlation is increasing. For example, over the past 20 trading days, the GLD and TLT have moved in the same direction on the same day 80 percent of the time, this compares to around 55 percent over the past ten years.
Now check out how the nearest gold and 10-year Treasury futures have tracked each other over the past six months.

This post was published at Zero Hedge on Aug 28, 2017.

Hidden Forces of Economics, Gold and Silver Report

We have noticed a proliferation of pundits, newsletter hawkers, and even mainstream market analysts focusing on one aspect of the bitcoin market. Big money, institutional money, public markets money, is soon to flood into bitcoin. Or so they say.
We will not offer our guess as to whether this is true. Instead, we want to point out something that should be self-evident. If big money is soon to come in, and presumably drive the price up to whatever new height – perhaps even the magic $1,000,000 – what comes after?
In the restless churn that has overgrown our capital markets, investors speculators are always seeking to get into whatever asset is bubbling up. Big money leaving will follow big money entering, as surely as a rock thrown into the air will fall back down.
In last week’s Supply and Demand Report, we excerpted a quote from economist John Maynard Keynes. He cited Vladimir Lenin discussing how to destroy Western civilization. Here is the full quote (from The Economic Consequences of the Peace):
‘Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.

This post was published at GoldSeek on Monday, 28 August 2017.

Futures Flat As Gasoline Soars On Harvey Devastation, Rising Euro Sends European Stocks Lower

With billions in economic losses and unknown supply chain shocks to come following devastating and historic flooding in Texas, S&P futures are virtually unchanged (down less than 0.1% at time of writing) while European and Asian shares are modestly lower as oil was little changed. As reported yesterday, gasoline futures surged as the greater impact of the storm that shut more than 10% of U. S. fuel-making capacity was becoming more evident. The Bloomberg Dollar Spot Index fell to its lowest since January 2015 after Janet Yellen and Mario Draghi refrained from discussing monetary policies at Jackson Hole on Friday.
The US dollar continued to slip against the euro after central bankers’ comments at Jackson Hole provided little reason for a change in this year’s trend. U. S. Treasury futures were steady ahead of a combined $60 BN worth of two- and five-year debt auctions and Friday’s payroll numbers. USDJPY hovered above 109.00 handle, with initial main support at 108.60, the low on Aug. 18. EURUSD little changed after rallying initially, but failed to break above 1.20 handle. European bond markets were waiting for impetus as a bank holiday in the U. K. weighed on trading volumes.
Unlike the US, European stocks started the week on the back foot, with every sector retreating following Friday’s euro surge. the European Stoxx 600 index declined following a surge in the euro towards $1.20 after Draghi did not express concern about the currency’s recent rally at Jackson Hole as some analysts had expected. The Euro Stoxx 50 falls 0.7%, while the exporters-heavy DAX drops 0.7% and France’s CAC falls 0.7%; U. K. markets are closed for public holiday. Germany’s DAX Index fell 0.5 percent to the lowest in a week.

This post was published at Zero Hedge on Aug 28, 2017.

Finland’s Largest Pension Funds Dumps US Stocks Because “There Is No President In The US”

As President Donald Trump prepares to meet with Finnish President Sauli Niinisto in the White House on Monday, a portfolio manager at the Baltic state’s largest pension fund has told Bloomberg that he will be trimming exposure to US stocks. The reason? ‘It seems as if there is no president in the US.’
Risto Murto, chief executive officer of Varma Mutual Pension Insurance complained that Trump’s response to the attack in Charlottesville Va. demonstrated that he is incapable of governing the world’s largest economy, and that it appears the US is more or less running on autopilot.
The reason for Murto’s concern: as the financial crisis showed us, when there is trouble in the US, it runs the risk of spreading to the rest of the world. Musto also cited Trump’s seeming inability to work with Congress as ‘particularly worrying,’ given that it threatens to disrupt the implementation of the Trump economic agenda. Hoped-for tax cuts and infrastructure spending helped push US stocks to record highs in the wake of Trump’s inauguration.

This post was published at Zero Hedge on Aug 28, 2017.

“Oil Markets Roiled”: Goldman Calculates The Impact From Harvey’s “Devastation”

Oil markets were roiled, sending gasoline prices surging on Monday after Tropical Storm Harvey wreaked havoc along the Gulf Coast over the weekend, crippling Houston and its port, and knocking out numerous refineries as well as some crude production. As noted on Sunday, gasoline prices hit two-year highs as massive floods caused by the storm forced refineries in the area to close. Meanwhile crude futures fell as the refinery shutdowns could reduce demand for US crude production. As a reminder, Texas is home to 5.6 million barrels per day (bpd) of refining capacity, and Louisiana has 3.3 million bpd. Over 2 million bpd of refining capacity was estimated to be offline as a result of the storm.
While the U. S. National Hurricane Center said Harvey was moving away from the coast, it was expected to linger close to the shore through Tuesday, and that floods would spread from Texas eastward to Louisiana.
As Reuters reports, US traders were seeking oil product cargoes from North Asia with transatlantic exports of motor fuel out of Europe expected to surge. ‘Global refining margins are going to stay very strong,’ said Olivier Jakob, managing director of Petromatrix. ‘If (U. S.) refineries shut down for more than a week, Asia will need to run at a higher level, because there’s no spare capacity in Europe.’

This post was published at Zero Hedge on Aug 28, 2017.

Waiting for a Republican Rollback of Government? Don’t Hold Your Breath

The Republicans failed on health care, but now they are offering a new plan for tax and spending cuts, with a promise of smaller government.
But the GOP, with few exceptions, seems about as creditable as the Democrats and their flawed, small-business killer, Obamacare. Many of the Democrats are people who subscribe to a socialism without doctrines; a kind of backdoor collectivism. So now, as they expect the Republicans to fail and lose control of Congress, naturally many of them are waiting for their chance to ram a single payer health care system down the throats of already overtaxed Americans.
Many Americans thought they were voting for less government in 2016, but they have been disappointed again and again by a party that doesn’t seemed interested in rolling back government.
Sir, Could You Just Give Us One More Chance? Still, Republicans, in their recent budget document say they will get taxes and spending right this time. This is reminiscent of the character Hoover in the 1970s movie Animal House. In the wreckage of a college homecoming parade that he and his fellow expelled hooligans have just destroyed, he pleads with the college dean, ‘This may seem an inappropriate time to bring this up, but could you just give us one more chance?’
Republicans want just ‘one more chance’ to roll back an out of control government that they helped to build. So now they have offered their proposals in their economic game plan, ‘Building a Better America,’ the GOP’s ‘Plan for Fiscal Responsibility’ coming out of the House Budget Committee. It calls for cutting taxes and details the outrageous overreach of government.

This post was published at Ludwig von Mises Institute on April 28, 2017.

Researchers Announce Nuclear Fusion Breakthrough

For years nuclear fusion was the stuff of sci-fi books and movies, but technology has brought it, like so many other things, closer to reality. So close, in fact, that there are plans to build the first nuclear fusion reactor by 2025 – a reactor that could yield a lot more energy than is fed into it and provide vast amounts of clean, sustainable energy.
Nuclear fusion, unlike fission, involves smashing particles together to generate energy. Basically, as Bloomberg Energy author Jing Cao explained in a detailed June overview, it’s like recreating the Sun on Earth.

This post was published at Zero Hedge on Aug 28, 2017.

Trump Presidency Is Over – Bannon Is Right

”The Donald’ has been White House-broken,’ writes Bill Bonner in his must read daily missive on Bonner and Partners
”The Donald’ has been White House-broken,’ was what we were trying to say, translating the phrase into something that may make sense to a French listener.
But it was too clever and complicated.
‘Well, let’s just say the president has been brought into line,’ we simplified.
Social Season
This is the social season in the French countryside.
Weddings, cocktails, receptions – people use the month of August to reconnect with friends before returning to work, school, and retirement in the fall.
Yesterday, we drove about a half hour over country lanes to a gracious 18th-century farmhouse. There, about 100 people had gathered on the lawn.

This post was published at Gold Core on August 26, 2017.

Greeks Rejoice – Government Scraps Controversial Wine Consumption Tax

While austerity still reigns supreme over Greek society, amid resurgent refugee arrivals, still near-record high youth unemployment, record-high suicide rates, and a constant brain-drain exodus of young talent, this weekend saw a brief silver lining as the government decided to scrap the controversial special consumption tax on wine.
The measure, which not only did not meet revenue targets, but actually boosted illegal trade in wine and grapes, will be halted by the end of the year.
As KeepTalkingGreece reports, inaugurating the Wine Days of Nemea 2017 in one of wine producing regions of Greece, Minister for Rural Development, Vaggelis Apostolou said that the ministry is working on the legislation to scrap the special consumption tax on wine and it is expected to be ready before the end of the year.’It is a commitment by prime minister Alexis Tsipras that the tax will not exist in the new year,’ Apostolou stressed.
Finance Ministry sources told daily Efimerida Ton Syntakton that the special consumption tax on wine caused more damage to the sector of wine producers than it brought revenues to the state.

This post was published at Zero Hedge on Aug 28, 2017.