The bottom line is that the "internationalization" and an increasing free float of the Yuan is bearish. And since the currency urgently needs even more devaluation as today's PBOC rate cut confirmed, this may just be the IMF's way of greenlighting even more devaluation for China's currency. And since any devaluation would lead to a surge in capital outflows, what the IMF is doing is merely blessing the Yuan's weakness while pretending it is in a position of strength, in an attempt to slow down the capital outflow as much as possible.
We will no doubt look back upon the current era as the “crime of the century” for so many different reasons. Actually, current times represent the worst financial crimes of ALL TIME! The various crimes and how they are operated are too numerous to list and would probably fill a three volume set of books, let’s concentrate on just one. Central to everything is the U.S. issuing the global reserve currency by fiat knowing full well it truly means “non payment”. The absolute cornerstone to the dollar retaining confidence and thus value has been the suppression of the price of gold.
Before getting to specifically what I’d like to point out, let’s look at a couple common sense points which beg questions. How is it China has been importing 2,400 tons of gold over the past two and a half years without any upward push to the gold price? This amount equals almost EXACTLY the TOTAL amount of gold mined annually around the world! How is it possible that ALL production has been purchased by China and yet the price goes down? The answer of course is quite simple unless you purposely close your eyes or disingenuously “apologize”.
Submitted by Tyler Durden on 10/23/2015 - 13:59 "Stunning, historic, mind-boggling, and catastrophic" is how Weather Underground's Jeff Masters sums up Hurricane Patricia, which intensified to an incredible-strength Category 5 storm with 200 mph winds overnight as it approaches the Mexican coast. As The NY Times reports, The World Meteorological Organization warned that the hurricane’s strength was comparable to that of Typhoon Haiyan, which caused devastation in the Philippines in 2013, and so Mexico has declared a state of emergency for Puerto Vallarta (with officials warning that storm surges could cause waves of up to 39 feet) as she is forecast to hit the coast between 6 and 10pm ET. Hurricane Patricia is "uncharted territory."
Submitted by Tyler Durden on 10/23/2015 - 13:51 With the biggest 2-day plunge in 9 months, EURUSD has broken back to a 1.09 handle this morning. It appears Mario Draghi has officially become US Corporate CEOs greatest nemesis (along with BoJ's Kuroda) as The USD Index surges to 3-month highs...
Submitted by Tyler Durden on 10/23/2015 - 11:37 The mainstream view that central banks have suppressed tail risk is absurd and runs counter to common sense. Policy makers have done the opposite. Central banks have taken asset returns from the future and brought them to the present… they have taken tail risk from the present and shifted it into the future… that have turned private risk into public risk. The risk is not gone... do not fool yourself.
Submitted by Tyler Durden on 10/23/2015 - 10:33 It's been a tough week for Pershing Square and Bill Ackman. First, Valeant gets eviscerated; and now, another major holding - Platform Specialty Products - plunged as much as 15% on news that the CEO is retiring.
Submitted by Tyler Durden on 10/23/2015 - 10:20 Having become an overnight social and industry outcast, at least Turing Pharma's Martin Shkreli had one thing going for him: a business model that afforded him solid margins, because despite promising to cut the price of the scandalous Daraprim, Turing did not do that. Now, however, even that may be in jeopardy following news that San Diego-based specialty drug maker Imprimis Pharmaceuticals, says it can make a close, customized version of Daraprim for a paltry $1 a pill, NBC reports. That's a big contrast to the $750-a-dose that Shkreli said Turing was going to start charging for the same drug.
"The Bernank" Says Economy Needs To Crash Periodically So We Can Be Sure We're Pushing It Hard Enough"My mentor, Dale Jorgenson [of Harvard], used to say — and Larry Summers used to say this, too — that, ‘If you never miss a plane, you’re spending too much time in airports.’ If you absolutely rule out any possibility of any kind of financial crisis, then probably you’re reducing risk too much, in terms of the growth and innovation in the economy.”
Submitted by Tyler Durden on 10/23/2015 - 09:52 Having stabilized at 2-year lows in September, October's preliminary US Manufacturing PMI printed 54.0 (smashing expectations of a small drop to 52.7). Despite collapse regional Fed surveys, and widespread job cuts across the manufacturing sector, Markit claims US Manufacturing is the strongest since May. Both output and new orders surged as input costs fell, as Markit notes, despite cycle high inventory levels, today's data "indicated a robust and accelerated expansion of production levels across the manufacturing sector." December rate-hike odds are risisng...
Incisive sociopolitical researcher Sofia Smallstorm joins the program to discuss her recent work examining the stealth privatization of individuals, local and regional governments, and the United States itself. She argues that this legal corporatization that has ensued in varying degrees since the late 1800s is a major factor in better understanding recent “mass shooting” drills, some of which are being presented to the public as actual events. In other words, once local municipalities and law enforcement agencies become dependent on federal grants, they are compelled to partake in such exercises to justify continued funding.
- Global Economic Outlook
- History and Role of Gold in Portfolios Today
- Asset Allocation – Higher Allocations to Gold Justified
- Dollar Cost Average – Need to Front End Financial Insurance
- An “ETF Is No Substitute for Physical Allocated Gold in the Vault”
If you ignore their recent volatility, the financial markets are painting a fairly happy picture. The S&P 500, for instance, is closer to its 12-month high than its low, and investment grade bonds are behaving like next year should be pretty much like this one.
But under the surface — which is where big trends are born — the scene is chaotic, with brutally-disappointing earnings reports and company-specific scandals combining to burn some legendary investors:
Valeant Pharmaceuticals International Inc.’s stock tumbled 23% on heavy volume in midday trade Wednesday, after a bearish report from a noted short-seller regarding questionable business practices made the rounds. The drug company’s stock has now plunged $64.36, or 36% this week, after the company said early Monday that it was mulling a change in strategy, including a possible spinoff of assets, as it faces government scrutiny over its pricing and distribution practices.
When during the last presidential election campaign Mitt Romney suggested that some 47 percent of Americans choose to be dependent on the government, he seems to have been right. (The exact number is probably impossible to ascertain.) And at this time, the Democrats are pretty much hoping that at least that many Americans believe they are the beneficiaries of government wealth redistribution, consisting of welfare payments, subsidies, Medicare, unemployment benefits, public works, public education, etc., etc., which they will secure for them.
To generalize this, let us simply take it that a very large proportion of the citizenry sees itself as dependent on government support. This is how most people in Europe and elsewhere around the globe see themselves. They require cradle to grave handouts. The rest are the producers, people who take the initiative to be productive, creative, and so forth. It is this latter group that supplies the resources from which the former take the wealth they require for their survival and flourishing. So Mitt Romney had it roughly right.
When it comes to “prepping”, many among the elite take things to an entirely different level. As you will see below, the elite are willing to pay big money for cutting edge home security measures, luxury bomb shelters and superyacht getaway submarines. Some of the things that the elite are demanding for their own protection go beyond even what we would see in a James Bond film, and serving the prepping needs of the elite has become a multi-billion dollar business. Meanwhile, the media outlets that the elite own continue to mock the rest of us for getting prepared. All the time we see headlines like this one that appeared in a major American news source: “Preppers: Meet the paranoid Americans awaiting the apocalypse“. Well, if we are paranoid for setting aside some extra food and supplies for the future, what does that make the people that you will read about in this article?
Russia and other countries formerly part of the Soviet Union continue to increase gold reserves at a steady pace.
Russia added another 34.2 tons of the precious metal in September. This follows on the heels of a 1 million ounce increase in Russian gold reserves in August, and continues a steady buying spree by the world’s seventh largest holder of gold.
Since the global financial crisis, Russia has increased its gold reserves at an average pace of about 300,000 ounces per month.
Dr. Ben Carson, one of the top two GOP front-runners for president, said former Secretary of State Hillary Clinton could face other legal problems that would keep her from continuing her campaign.
“Hillary could well be in jail, and it’s hard to run from there,” he said. Then Carson added: “I think she may not be actually in jail, but I think the controversy swirling around that will have an extremely damaging effect.”
Carson made the comments in an interview with Fox News Radio’s John Gibson. The interview was released Wednesday. At the time the interview was released, Vice President Joe Biden had not announced his intentions regarding seeking the Oval Office. Carson said that Biden would win, if he ran.
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In her opening statement to the Benghazi Select Committee this morning, former Secretary of State and current Democratic Party 2016 presidential frontrunner Hillary Clinton continued to justify the United States’ 2011 intervention in Libya in terms that should be worrying to the wide swath of the American polity that has grown allergic to haphazardly-planned, open-ended military conflicts:
America must lead in a dangerous world, and our diplomats must continue representing us in dangerous places. […]
We have learned the hard way when America is absent, especially from unstable places, there are consequences. […]
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