Submitted by Tyler Durden on 09/02/2015 - 14:50 Economies around the world are in shambles. All central banks and banking systems are overextended. So too are political entities. The geo-political situation is worse than any time since World War II. The nature of politics is to kick the can down the road. We are nearly out of road. The scam is likely at its end regardless of what is tried. The piper is coming for what he is owed.
Submitted by Tyler Durden on 09/02/2015 - 17:20 There's a debate in professional circles as to whether the stock market is in a correction or a bear market. It makes a difference...
Submitted by Tyler Durden on 09/02/2015 - 16:55 Lies, Damn Lies, and Political speech... It appears little white lies matter.. and so do blatant black ones...
Submitted by Tyler Durden on 09/02/2015 - 14:26 As WSJ reports, "five Chinese navy ships are currently operating in the Bering Sea, off the coast of Alaska, the first time the U.S. military has seen such activity in the area, Pentagon officials said Wednesday.
Submitted by Tyler Durden on 09/02/2015 - 16:32
Submitted by Tyler Durden on 09/02/2015 - 16:30 Dear Investors, The last few weeks have exposed that our equity markets are not as liquid as we have long claimed mainly due to market fragmentation and the lack of diverse liquidity pools...
Submitted by Tyler Durden on 09/02/2015 - 16:06
The looming collapse of the Global Monetary System is so “in your face” right now it’s hard to see any other result arise out of the current conditions. Yes, we got the timing right for the chaos to begin (as it already has) but the full extent of the collapse is still unknown…even to the market riggers.
Here are 5 things that will happen before now and the end of the year that will truly change the playing field.
1) Stock markets will continue to fall even though the “gurus” scream about what a great time to buy it is. At some point, the “market losers” will cry to the Fed and Government to help them restore their wealth but there will be little either could do at that point.
Submitted by Tyler Durden on 09/02/2015 - 15:50 One of the best ways for the general public to take power back is to develop alternative currencies - both local and global - that allow people to trade outside of the corporate-government banking systems and central bank notes. In London, an interesting alternative currency bearing the face of pop singer David Bowie has recently come into circulation. It is officially called the “Brixton Pound.” The Bank of England has been forced to respond to these local currencies because of their popularity, deeming them “voucher schemes” and warning the public that they are unprotected when using them.
Submitted by Tyler Durden on 09/02/2015 - 15:37 "Artemis Vega Fund LP and associated institutional managed accounts gained approximately +15.49% gross of fees on September 1, 2015 on a day the S&P 500 index lost -2.96%. Please note this performance was for the day.... Our models currently register a 30% probability the VIX will re-test highs above 40 in the next 21 days."
"What If China Devalues To 8?" BofA Warns Of "Profound" Consequences For Commodities, Financial SystemSubmitted by Tyler Durden on 09/02/2015 - 15:10 "Our Asia strategy team points out news reports that some Chinese government agencies are planning on the assumption of USD/CNY at 8.0 for the end of 2016. This would be a 20% devaluation back to 2006 levels. Considering the major impact of the 3% devaluation this August, the implications for EEMEA would be profound. Asset prices of commodity exporters would again suffer the most, as they have done since 10 August. Potentially even more damaging would be risk of financial contagion throughout the global banking system."
n July, the FDA announced changes to the labels of nearly every medication in the non-steroidal anti-inflammatory drug (NSAID) class, warning that those drugs could cause fatal strokes and heart attacks even in young people with no known cardiovascular risk factors. Heart attacks could be triggered after just weeks of taking the pills.
“There is great concern that people think these drugs are benign, and they are probably not,” said Peter Wilson of Emory University, who served on the expert panel that advised the FDA on the decision. “The thought is these are good for short-term relief, probably for your younger person with no history of cardiovascular trouble.”
Today’s Gold Prices: USD 1140.00, EUR 1010.73 and GBP 746.46 per ounce.
Yesterday’s Gold Prices: USD 1141.90, EUR 1012.23 and GBP 744.10 per ounce.
Gold was marginally higher yesterday and closed at $1139.80 per ounce, up $4.30. Silver was 0.1% lower and closed at $14.60 per ounce.
Silver in USD – 5 Years
Stocks in the U.S., Asia and this morning in Europe had seen a renewed rout as concerns about China’s slowing economy and the global economy badly impacts financial markets.
This is an interesting interview with Rich Scheben as he and Dave discussed societal issues as well as how to prepare for what is coming.
Listen to Dave Interview Rich Scheben
From Jim Sinclair's www.jsmineset.com
Submitted by Tyler Durden on 09/02/2015 08:23 -0400
Following its disappointing tumble in July (having missed expectations for 6 of the last 7 months), August ADP printed another miss at 190k against expectations of a 200k rise with last month revised lower. As the energy sector continues to bleed jobs at a rate of 10k per month, ADP’s Zandi notes that manufacturing jobs growth is all auto-related (which is extremely worrying given the size of inventories). Job growth was largely driven by small businesses (85k) as opposed to large business (40k) with Service-producing goods drastically outpacing manufacturing job growth (173k to 17k). Perhaps most notably, ADP jobs data has dropped YoY for the last months
Not exactly escape velocity…
But the year over year data is ugly…
I found this interesting. The subject keeps coming up on the web consistently.
Keeping your money in cash will be illegal, keep it in banks and you’ll be taxed until you spend it.
Remember this, in America frugality and fiscal responsibility are frowned upon.
The Fed no longer has any firepower to hold the markets up so, they’ll encumber its citizens with the task… by spending EVERYTHING they own.
CIGA Wolfgang Rech
The Case for Outlawing Cash
By BILL BONNER on September 2, 2015
Retiring Another “Barbarous Relic”
Last week, the influential Financial Times newspaper ran an article calling for the abolition of cash. It was titled “The case for retiring another ‘barbarous relic.’” And it claimed that cash causes “a lot of distortion in the economic system.”
Can you believe it?
Cash causes economic distortions! From the FT:
The existence of cash – a bearer instrument with a zero interest rate – limits central banks’ ability to stimulate a depressed economy.
The worry is that people will change their deposits for cash if a central bank moves rates into negative territory. It also repeated the familiar claims that cash also is what finances terrorism, tax evasion, and the black market. Making cash illegal, it says, would “make life easier for a government set on squeezing the informal economy out of existence.”
And yet another article on banning cash and bank deposits! This time it’s Sweden.
I’m getting the feeling that “moving your money to another country” is NOT an option anymore!
That leaves only one resource left… GOLD.
CIGA Wolfgang Rech
Meanwhile, In Sweden, Banks Are Refusing To Open Savings Accounts
Submitted by Tyler Durden on 09/02/2015 – 12:51
The problem is that if you go NIRP and still are not able to achieve the kind of economic outcomes you were looking for by essentially forcing depositors to choose between a tax on their savings and pulling money out and spending it, well then the next logical thing to do is to stop accepting deposits, which is apparently what it’s come to in Sweden.
The pawn in this contest is… oil.
Just another nail in the coffin of “free markets.”
“And now, as Russia’s economy collapses under the weight of American and European sanctions, including what many believe to be widespread downward manipulation of oil prices, Vladimir Putin is sending a clear signal to the central bank of the world’s reserve currency.”
Certainly looks like the end is in sight for Dollar Hegemony.
CIGA Wolfgang R.
Putin Targets US Monetary System: “Aims To Eliminate US Dollar From Trade”
Submitted by Tyler Durden on 09/02/2015 – 11:48
Something is afoot as de-dollarization escalates around the world. With CNY/RUB trading volumes up a stunning 400% year-over-year to record highs, and hot on the heels of China’s (and much of EM Asia) dumping dollar assets, Russian President Vladimir Putin has just unleashed a new bill aiming to completely eliminate the US dollar from the trade of goods.
As Putin explained last year… trade in Rubles and Yuan will weaken the dollar’s influence…
This has caught my attention:
“Never before have so many of the most important countries in the world printed so much money and left base rates at near zero for so long.
Also never before has the largest economy in the world tried to start a slow process of reversing said extraordinary policy.” –From DB’s Jim Reid
With the economies so weak and vulnerable, why begin the tightening process now? Could it be the specter of hyperinflation on the horizon that dictates this policy?
I can think of no other reason. None!
CIGA Wolfgang Rech
“The Biggest Problems We Face Is That We’re All Flying Blind To A Large Degree” Warns Deutsche Bank
Submitted by Tyler Durden on 09/02/2015 – 08:06
“One of the biggest problems we face is that there is no historical template for current global market conditions so we’re all flying blind to a large degree.
Never before have so many of the most important countries in the world printed so much money and left base rates at near zero for so long.
Also never before has the largest economy in the world tried to start a slow process of reversing said extraordinary policy. So there is no road map for this journey, only educated (hopefully) predictions.”
Briefly and in plain English I would like to explain this to you. The “VIX” index, otherwise known as the fear “index” has been a major tool of the PPT and Associates in supporting the stock market. A “low” number is indicative of little fear while a high number shows more fear. In an effort to support equities, this index has clearly been suppressed in price by selling more shares short than even exist. (Does this sound familiar to gold and silver investors?). This now poses a VERY BIG PROBLEM!
Plain and simple, with more shares short than exist, a short squeeze for the ages has been set up. Knowing a big move upward in the VIX is also synonymous with lower stock prices, one can extrapolate (along with many other technical and fundamental weaknesses) a market crash of epic proportions will happen whenever this short squeeze is actually covered. The “squeeze” has already begun with the VIX running up to 31.8 as of this writing. The “crash” has also started worldwide if you have been paying attention. In my opinion, the “short covering” has the potential to push the VIX index to all time high prices. Greater than 2001, 2008 and even 1987. Can you guess what this will mean to averages like the Dow Jones, S+P 500 or the NASDAQ???
Comments welcome! email@example.com
VIX ETFs Are In Crisis Mode
Submitted by Tyler Durden on 09/01/2015 13:21 -0400
That’s what happens Larry when there are 64 million shares short and only 52.3 million shares outstanding…
VXX (Long VIX ETF) is exploding higher amid the short squeeze…
XIV (Inverse VIX ETF) is reflexively puking to new lows…
And that is dragging stocks lower…
Tighten now, Janet!
US Manufacturing Plunges To 2-Year Lows As New Orders, Employment Tumble
Submitted by Tyler Durden on 09/01/2015 10:06 -0400
Following disappoint PMIs from around the world, the US decoupling meme took another knock today as Markit PMI printed 53.0 (from 53.8) – its lowest in almost 2 years, led by a plunge in the employment subindex. Weakness was also evident in new factory orders. As Markit notes, ”U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty.” On the heels of Milwaukee and Dallas Fed weakness, ISM Manufacturing printed a disastrous 51.1 (vs 52.5 expectations) – the lowest since May 2013. Employment tumbled, as did New Export orders, but unadjusted New Orders plunged to its lowest since 2013, which is a problem given the massive inventory builds that have saved the world in the last few months.
Manufacturing worst since Oct 2013…
And under the surface it is ugly..
*MARKIT AUGUST FACTORY EMPLOYMENT GAUGE DROPS TO ONE-YEAR LOW
*MARKIT AUGUST FACTORY ORDERS INDEX FALLS TO 54.7 FROM 55.4
As Markit summarizes,
“August’s survey highlights that the U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty, but resilient domestic spending and subdued cost pressures are keeping the recovery on track. Reflecting this, new orders from abroad have now fallen in four of the past five months, which represents the weakest phase of manufacturing export performance since late-2012.
“In response to softer growth momentum, manufacturers took a more cautious approach to staff hiring and inventories in August. Stocks of finished goods were depleted for the first time in 2015 so far, and job creation was the weakest for over a year, as some firms sought to realign production schedules with expectations of sluggish growth trends ahead.”