Submitted by Tyler Durden on 10/14/2015 - 20:39 First The Bank of Japan destroyed the Japanese bond market, and then, back in May we warned that The Bank of Japan had 'broken' the stock market. Now, it appears the all too obvious consequences of being the sole provider of buying power in an antirely false market are coming home to roost as Nomura reports the "temporary suspension" of new orders for 3 leveraged ETFs - the largest in the world - citing "liquidity of the underlying Nikkei 225 futures market."
Illinois To Delay Pension Payments Amid Budget Woes: "For All Intents And Purposes, We Are Out Of Money Now"Submitted by Tyler Durden on 10/14/2015 - 14:47 ILLINOIS WILL DELAY PENSION PAYMENT BECAUSE OF CASH SHORTAGE
The Money GPS:
In light of Bill Holter’s excellent article today, I would respectfully ask you listen to my last interview with Greg Hunter. Even if you have already heard it, listen to it one more time.
It carries the most important message since we talked about gold at $1650 when it was below $500.
It has been a while since I have written anything close to being considered a “rant”. Instead, using cool and common sense logic of connecting dots for readers has been my method of choice. Over just the last several weeks, the “obviousness” of what is coming has been astounding. I can only wonder why the “inevitable” has not yet been seen by the masses? Though Mark Dice giving the choice of a candy bar or a 10 ounce silver bar …only to run out of candy may be the answer?
The tone has definitely changed in the markets, nearly ALL markets. Maybe it is because of the things I wrote about recently, central bank’s loss of credibility or U.S. power and strength being questioned not only in the Middle East and elsewhere? Mainstream media who barraged the gold market with hit pieces and laughed at anyone not in equities only two months back have had to change their tone dramatically … because they had some explaining to do.
For brevity let’s just look at the gold and silver markets. While recently talking to Jim Sinclair, he said the price of gold is like someone walking up to you in a clown suit and wondering why you thought something might be wrong? I ask you this, what do you suppose will happen with silver and gold after UBS http://www.zerohedge.com/news/2015-09-28/ubs-about-blow-cover-massive-gold-price-rigging-scandal becomes the state’s witness in Switzerland’s gold rigging investigation? Before going any further, doesn’t this just confirm that us “conspiracy whackos” or “GIAMATTs” (gold is manipulated all the time) according to the Norcini’s/Gartman’s/Christian’s and Casey’s of the world …were correct? Are we to believe gold and silver are THE only markets in the world that are not manipulated? Only an idiot or the disingenuous could believe this!
It is most obviously clear the world needs to REFLATE. Not just part of the world, the entire world …which includes China as their bubble has burst. Zerohedge remarked yesterday http://www.zerohedge.com/news/2015-10-12/why-gold-surging-bofa-says-expect-massive-policy-shift-2016 “if China is indeed set to reflate at all costs, watch as a few hundred million Chinese drop their infatuation with the housing and stock bubbles, and go back to the one asset class that throughout history has been the best defense for currency devaluation and runaway inflation.” I ask, what do you suppose will happen to gold and silver?
As for the crazy “gold bugs”, what the heck has happened to them? They were on the right track and now become scared and petrified …just at the very moment they will need their insurance! The brain washing has worked, even the once sane are questioning their sanity! As Jim has said, “this is most probably the bull market in gold you never sell” …yet hard money people are in a panic?
Let me explain the above and also answer the question in the title. Simply put, gold and silver will ultimately go “no offer”. The laughable inventories at COMEX and LBMA will be gobbled up and erased within mere minutes. Gold will go into hiding and not be offered at any dollar price…for “a time” but I’ll get to this shortly. What “price” will gold reach in dollars? This is a question no one can answer because we have no idea how many new dollars will be created by the Fed to battle the financial monster of their own making. We also have no idea if even one ounce remains in Ft. Knox. Is the number $5,000? $10,000? $50,000? When literally $100′s of trillion in debt and over $1 quadrillion in derivatives come down (and they mathematically will), they will seek the safe haven of “cash”. “Cash” without liability that is! The above ground gold stock is only about $5 trillion, what do you suppose will happen when several $100 trillion sets their sight on the safety of real money? The number of $50,000 may be off by a zero or two!
As for Jim’s comment about this rally being the one you never sell, I’d like to clean this up a bit. “Never” is a very long time and one should “never say never”. What he meant to say is this, this coming rally will be the one you NEVER sell for dollars, euros, yen, pounds or maybe even yuan. It will be foolish to “sell” your gold for a fiat currency …ANY fiat currency. I believe when the system breaks and gold does go into hiding, it will not reappear for sale until new and credible currencies are issued. The mindset will change and holders of gold will only be coaxed to sell for something they can have confidence in. It is this thought process which will be at the center of asset repricings as we reset.
Let me finish with this, I and many others have been called “fearmongers” for writing about the coming collapse. “We”, those who said these same things in 2007 and 2008 were branded fearmongers then also. The thing is this, nothing has changed, nothing has been fixed and in fact the world is more in debt and further leveraged than it was back then. This is 2008 all over again only worse and this time …the global central banks and sovereign treasuries cannot ride in and fix anything because they have already blown their credibility!
We live in a world which is financially foundationed by the currency of a bankrupt issuer who prints this money to purchase their own bonds. Several $100 trillion of debt and over $1 quadrillion in derivatives rely on this currency for their “value and pricing”. It amazes me how so many people who once knew “what” exactly they owned, now don’t even have a clue because of the psy ops so well orchestrated. This is for ALL THE MARBLES and THE MOST IMPORTANT CROSSROADS IN MODERN DAY HISTORY! Please dig deep for your own common sense and logic …your financial life depends on it !
Comments welcome! firstname.lastname@example.org
Submitted by Tyler Durden on 10/14/2015 - 23:15 Between the plunging market-implied rate-hike probabilities and Fed-Whsiperer Jon Hilsenrath's WSJ piece this evening strongly hinting at no hikes in 2015, the 'relief' rally in Asian FX (and Japanese stocks) is - in a word - insane. If the world's central banks mandates are "price stability" in whatever format they believe that to manifest, they have well and truly failed. The Won has jumped most since 2011, Ringgit and Rupiah are soaring over 2%, and Nikkei 225 is up over 400 points from the US session close...
Submitted by Tyler Durden on 10/14/2015 - 22:00 Allen Dulles, the CIA director under presidents Eisenhower and Kennedy, and younger brother of Secretary of State John Foster Dulles, was the architect of a secretive national security apparatus that functioned as essentially an autonomous branch of government. In a Cold War-era world full of spy games and nuclear brinkmanship, in which everyone is either a good guy or a bad guy, Dulles - who deceived American elected leaders and overthrew foreign ones, who backed ex-Nazis and thwarted left-leaning democrats - falls firmly in the latter camp.
Submitted by Tyler Durden on 10/14/2015 - 21:45 Now that it is election season, we have all sorts of politicians running around proclaiming that America is the greatest nation on the entire planet. And just this week, Warren Buffett stated that “America’s great now — it’s never been greater“. But is it actually true? Is the United States still a great nation?
Submitted by Tyler Durden on 10/14/2015 - 21:29 In the world's most populous communist country where jobs used to be guaranteed - by definition - to anyone, in any walk of life, it has suddenly become next to impossible to progress up the career ladder, something which will result in great social angst and instability in the coming years. According to China Daily, competition for white-collar jobs became fiercer in the third quarter, with more than 35 job seekers contending for the same position on average. This is a jump from 26 and 29 in the first and second quarters this year, a Chinese human resources website said on Tuesday.
Submitted by Tyler Durden on 10/14/2015 - 21:08 "While it is human nature to think and expect along linear lines, our World just doesn’t work that way. Instead, everything moves in cycles, some short and shallow, while other cycles are long and deep. What we are experiencing today is the likely turning point in a very long cycle of borrowing, borrowing and then borrowing some more."
Submitted by Tyler Durden on 10/14/2015 - 21:00 It only makes sense in this "good news is bad news" market that the best outperformance this year has been achieved by being ultimately contrarian and fading the crowd. As BofAML warns, 2015 is another year of position-driven alpha as selling the 10 most-overweight stocks held by active managers and buying the 10 most-underweight stocks crated a stunning 17 percentage point spread this year...
Submitted by Tyler Durden on 10/14/2015 - 20:00 "When I read that the report on the downing of the Malaysian airliner over Ukraine was being put in the hands of the Dutch, I knew that there would be no investigation and no attention to the facts. And there wasn’t."
Submitted by Tyler Durden on 10/14/2015 - 19:30 In the four or so weeks after the August 11 China deval, all anyone wanted to talk about was FX reserves. Goldman has endeavored to tally up currency intervention as a percentage of reserve money in Asia during what they’re calling the “China tantrum”. Note the rather scary looking figure for Malaysia.
Submitted by Tyler Durden on 10/14/2015 - 19:00 The single most important “unknown unknown” today is any random event that may unexpectedly cause global central banks to withdraw their stated support of markets. Moral hazard has contributed to a significant build up in short and leveraged volatility creating a shadow ‘volatility gamma’ that reinforces the current trend in volatility direction. Rising volatility is followed by more rising volatility and vice versa. The pattern is creating a pro-cyclical monster of short volatility that, if left unchecked will contribute to a repeat of the May 2010 Flash Crash or 1987 Black Monday Crash. August 2015 was just an appetizer.
Submitted by Tyler Durden on 10/14/2015 - 18:50 "First off, the premise of the question, I would argue that anybody selling into the industrial market is not selling into a non-recessionary environment. The industrial environment is in a recession - I don’t care what anybody says, because nobody knows that market better than we do. You know, we touch 250,000 active customers a month.
Submitted by Tyler Durden on 10/14/2015 - 18:35 For over 3 years we have pointed out that the surging youth unemployment was Europe's (if not the world's) scariest chart, because the last thing Europe needs is a discontented, disenfranchised, and devoid of hope youth roving the streets with nothing to do, easily susceptible to extremist and xenophobic tendencies: after all, it must be "someone's" fault that there are no job opportunities for anyone. Well, as Bloomberg reports, The World Bank has an unsettling message for young people around the globe: unless we create 5 million jobs a month, the situation is going to get worse.
Submitted by Tyler Durden on 10/14/2015 - 18:16 In September, the Port of Long Beach handled a near record 197,076 outbound empty boxes. "They accounted for nearly a third of all containers that moved through the port last month. September was the eighth straight month in which empty containers leaving Long Beach outnumbered those loaded with exports."
Submitted by Tyler Durden on 10/14/2015 - 18:11 "I can tell you that as for China's warships, for example the Liaoning, whether it has gone to join, for this issue, as far as I know, there is no such plan. At this time the Liaoning is in a phase of carrying out technical training and military exercises."
filed under Dumb (unt....sorry I keep forgetting the second )
Former Secretary of State Hillary Clinton said in last night’s presidential debate on CNN that she “would go further than even the executive orders that President Obama has signed” in helping illegal aliens in the United States.
“You know, I came to Las Vegas in, I think, May, early may. Met with a group of DREAMers [illegal alien children]. I wish everybody in America could meet with these young people, to hear their stories, to know their incredible talent, their determination, and that’s why I would go further than even the executive orders that President Obama has signed when I’m president,” Clinton said.
In November 2014 President Obama took executive actions to shield over 4 million illegal immigrants from deportation. Texas and several other states sued the federal government over the plan to unilaterally suspend the immigration laws and have been granted an injunction.
Read More @ CNS News.com:
The precious metals industry is comprised of a formidable array of retailers who strive to serve the precious metals buying community in real-time with low prices and quality metal. Sometimes, it can be tough to know exactly which dealers can be trusted or not. Luckily, a website has been around for five years which does just that. Thousands of gold and silver bugs use the site monthly to learn about the precious metals industry and, what’s more, get the best prices. Of the sites featured on Compare Silver Prices (CSP), some are familiar. Websites like APMEX and Kitco join new price leaders such as Silver.com and BGASC.
“Americans motivated by anti-government views and racist ideologies” will be the focus of a new Department of Justice position, John Carlin told a George Washington University crowd today.
The Associated Press reports:
The Justice Department is creating a new position to coordinate investigations into violent homegrown extremism, a department official said Wednesday.
Assistant Attorney General John Carlin, head of the department’s national security division, said that while the international terror threat occupies the public attention, federal officials remain just as concerned about the prospect of violence from Americans motivated by anti-government views and racist ideologies.
Nearly one year ago, on 29 October 2014, the Federal Reserve announced it would end QE3, its third round of bond-buying stimulus that ballooned its balance sheet by $3.5 trillion.
No longer worried about global weakness with equity markets sound, and “that the likelihood inflation running persistently below 2 percent has diminished,” the Fed declared there would be no need for QE4.
While pledging to maintain its Zero Interest Rate Policy it had in place since 2008 for a “considerable time,” the expectation on the Street, based on the Fed’s bullish growth, inflation and equity market forecasts, was for the first round of interest rate hikes to begin by mid 2015.
If you love to eat sushi, and particularly the green mustard with a kick which comes with most Japanese dishes – wasabi – then you could very well be fighting one of the most deadly types of pancreatic cancers around.
Otherwise known as Japanese horseradish, wasabi has been shown to kill human pancreatic cancer cells with accuracy. Specifically, the active compounds of wasabi:
. . .showed that compounds 6-MITC and I7557, but not I7447, inhibited viability of both PANC-1 and BxPC-3 cells. Morphological observation showed mitotic arrest and apoptosis in 6-MITC- and I7557-treated cells. These two compounds induced G2/M phase arrest and hypoploid population. Percentages of ALDH-positive PANC-1 cells were markedly reduced by 6-MITC and I7557 treatment. The expression of CSC signaling molecule SOX2, but not NOTCH1, ABCG2, Sonic hedgehog, or OCT4, was inhibited by 6-MITC and I7557. In conclusion, wasabi compounds 6-MITC and I7557 may possess activity against the growth and CSC phenotypes of human pancreatic cancer cells.”Read More