The US Labor Market Is In A Full-Blown Depression
Now
that stocks are back to reflecting nothing more than expectations of
how many times the Chairsatan dilutes the existing monetary base in a
carbon copy replica of not only 2011 but also 2010... and 2009 (because
contrary to what purists may believe, the only way to inflate away
unsustainable debt in a growth-free economy is by destroying the
currency), and manic pattern chasers have crawled out of their holes
proclaiming the death of the bear market after a two day bounce, what is
happening in the actual economy, no longer reflected by the market,
has once again been pulled back to the backburner. Which is sad,
because while ever fewer people reap the benefits of artificial,
centrally-planned S&P rallies, the rest of the population suffers,
and what is worse: hope for a quiet, middle-class life is now an
endangered species. Nowhere is this more evident than in the following
list from David Rosenberg which summarizes how, quietly, the US labor
force slipped back into a full-blown depression.China's Auto Dealers' "Backs Are Broken" As 'Channel-Stuffing' Gets "Dangerous"
While
LeBeau et. al. have sung the praises of a renaissance in Auto
companies and their manufacturing recovery supporting what woeful growth
we have seen, we have mournfully noted the ever-increasing builds of inventory (or 'channel stuffing') at auto-dealerships and most recently pointed to China's 'debilitating price cuts to come' three weeks ago here. Bloomberg this evening is reporting that the situation is getting worse, much worse, as Chinese
dealership inventory levels have exploded from under 45 days to over
60 days supply as "dealers can't shoulder the burden anymore... Their
backs are broken". This should come as no surprise to ZeroHedge
readers but this is forcing dealers to deepen discounts and sell cars
at a loss to meet mandatory sales targets. As GM just this week crowed
of its 21% rise YoY in 'sales' in China, local analyst channel checks
show two-month levels of inventory for foreign brands and even worse
60-80 days worth of inventory for domestic brands adding that this much
inventory "is pretty dangerous for the industry". China's largest
distributors of autos are canceling debt issues and their views are
scarily summed up (by them not us): "The picture we have is very
different from what the automakers are painting. The sales increases
they’re reporting are achieved by loading dealers with stock."David Takes On The Porn-Addicted Goliath: Egan-Jones Countersues The SEC
A month and a half after the SEC took a much-deserved break from watching taxpayer-funded pornography,
and stumbled on the scene with its latest pathetic attempt to
scapegoat someone, anyone, for its years of gross incompetence,
corruption, and inability to prosecute any of the true perpetrators for
an event that wiped out tens of trillions in US wealth, by suing
Egan-Jones for "improperly" filing their NRSRO application in what was a
glaring attempt to shut them up, the only rating agency with any credibility has done what nobody else in the history of modern crony capitalist-cum-socialist America has dared to do: fight back. We have only three words for Sean Egan: For. The. Win.Barrick CEO Aaron Regent sacked/Bullion demand rises (liberty coins)/Markets zoom on global QEIII speculation/Six German banks downgraded
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 4 hours ago
Good
evening Ladies and Gentlemen
Gold closed up $17.60 to $1632.80. Silver had a stellar day rising by
92 cents to $29.47.
Today we had a risk on situation where all assets rose in price
including bonds, commodities and bourses throughout the globe. The ECB
kept rates unchanged and checked to the Fed and Germany. Six German
banks were downgraded by Moody's. The big news was the sacking ofGuess Who Was Buying At The Bottom
Remember when the retail investor was the butt of all jokes, abused by the "smart money" hedge funds and prop desks to soak up hot potatoes and even hotter grenades? Well, to quote Matthew, those who are last now will be first then, and those who are first will be last: because the dumb money just got very smart. As the latest update from ICI shows, in the last week of May, when all the "smart" money was selling hand over fist, it was the retail investor who bottom-timed the market perfectly.
Fed Vice Chair Yellen Says Scope Remains For Further Policy Accommodation Through Additional Balance Sheet Action
That former San Fran Fed chairman Janet Yellen would demand more easing is no surprise: she used to do it all the time. That Fed Vice Chairman, and Bernanke's second in command, Janet Yellen just hinted that she is "convinced that scope remains for the FOMC to provide further policy accommodation either through its forward guidance or through additional balance-sheet actions", and that "while my modal outlook calls for only a gradual reduction in labor market slack and a stable pace of inflation near the FOMC's longer-run objective of 2 percent, I see substantial risks to this outlook, particularly to the downside" is certainly very notable, and confirms everyone's worst dream (or greatest hope assuming they have a Schwab trading platform or Bloomberg terminal) - more cue-EEE is coming to town.Is the Table Set For A Mania In Precious Metals?
It may feel like I'm out of touch with the precious metals markets to broach the subject of a mania today, but I think the table is being set now for a huge move into gold and silver. There are, however, very valid reasons to reasonably expect a mania in our sector. For one thing, manias have occurred many times before, but the main issue is that a mania in gold and gold stocks is the likely result of the absolute balloon in government debt, deficit spending, and money printing. Saying all that profligacy will go away without inflationary consequences seems naïve or foolish. Inflation may not attract investors to gold and silver as much as force them to it. Now, one could make the argument that any rush into gold and silver will be muted if no one has any savings, especially given that demographers say a quarter of the developed world will soon be retired. But even if individuals are wiped out, the world's money supply isn't getting any smaller, and all that cash has to go somewhere. I wanted to look at cash levels among various investor groups to get a feel for what's out there, as well as how money supply compares to our industry. Data from some institutional investors are hard to come by, but below is a sliver of information about available cash levels. I compared the cash and short-term investments of S&P 500 corporations, along with M1, to gold and silver ETFs, coins, and equities. While the picture might be what you'd expect, the contrast is still rather striking.
Biderman Vs. Spiderman (Towels)
Despite the failure of the generous offer of Spiderman towels
from the recently 'stress-test'-proof-but-now-busted Bankia, today's
market suggests there is still hope. The public estimate of loan losses
for Spanish banks stands around EUR225 billion (EUR 125bn known and an
additional EUR100bn estimated) which, as Charles Biderman of TrimTabs
notes "is so big as to be practically unsolvable" as he details the total and utter lack of trust of Spain and Spanish banks that is spreading not just across Europe but around the world. The
installation of six of the largest global consulting firms (and the
IMF) to begin audits of the Spanish banks, as Reuters reports today,
should tell everyone (especially those who bid them up 7-10% today) just
how terrible the situation is. Biderman begins to go ultrasonic
as he expects real losses for Spain to be in excess of EUR300 billion
and this is just Spain! Who knows how big the losses are for the rest
of Europe? He does not believe Germany, or anyone else, will put up the
EUR300 billion for Spain (or a trillion for the rest of Europe) and
sees at best a 50% chance that the entire Euro banking system
will go down leaving a much smaller Euro-zone behind (and a 25% chance
of a non-panic mode restructuring).
The USTreasury Bond might be a Tower of Babel, but when it begins to
fall, it will produce a vast powerful gigantic Black Hole. The process
has already begun, as junk bonds are being cast aside.Like with astronomy, the star is dying, the core being USDollar, the revolving part the USTBonds.
As the bond rally continues, will a collapse occur before the 10-yield hits 1.0% ??
- The Zero Percent Interest Policy produces poor consumer decisions and bad impaired management
- The capital investment process has been disturbed very badly, as businesses cannot be managed well
- The 0% cost of money distorts all financial markets, all asset pricing
- Raids on private pensions are soon to come (401k, IRA, Keough), which will add power to the Black Hole
- The unspoken effect of ZIRP is the powerful ongoing destruction of capital
Read More @ SilverDoctors.com
I would like to Thank Kevin O. our 7th donor, for his very generous donation.
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I think this might be a good time for Americans to start paying more attention to not just Europe, but what is happening in the Far East. The following editorial is from China Daily, the Communist Chinese Party newspaper for foreign consumption. – John Galt
Escaping the Dollar Trap by Zhang Monan, China Daily
Direct yen-yuan trading is another step in China’s bid to extricate itself from excessive dependence on US currency
As part of efforts to boost bilateral trade and investment, China and Japan started direct trading of their currencies in Shanghai and Tokyo on June 1.
Allowing the yuan to directly trade with another major currency other than the US dollar will help China in its efforts to acquire a wider trading and financial presence.
The biggest lesson China has learned from the global financial crisis is that it should push for reforms of the international monetary system and accelerate the internationalization of the yuan. It has also become increasingly evident that the dollar-dominated global monetary system has not only interrupted the world’s normal economic growth mechanism, but also caused global economic and financial chaos. The “dollar trap” can be found in every corner of the world.
Read More @ JohnGaltFLA.com
by “Prepared Pastor”, SHTFPlan:
Our long time friend and regular contributor Manos has been keeping us
abreast of the day-to-day goings on in Greece for the better part of
three years. Suffice it to say, it’s getting worse with very little hope
of resolution to the economic and political woes facing the country, as
well as its European neighbors.
The following is a first person perspective of the realities on the ground, and what it looks like in the midst of a truly frightening economic collapse that threatens to not only wipe out the financial wealth and life savings of an entire nation, but may potentially lead to a breakdown in the rule of law and civil war between extreme political factions trying to fill the vacuum of power.
This is real, it’s happening right now, and it’s coming to America in due time.
Read More @ SHTFPlan.com
from, The Victory Report:
Our long time friend and regular contributor Manos has been keeping us
abreast of the day-to-day goings on in Greece for the better part of
three years. Suffice it to say, it’s getting worse with very little hope
of resolution to the economic and political woes facing the country, as
well as its European neighbors.The following is a first person perspective of the realities on the ground, and what it looks like in the midst of a truly frightening economic collapse that threatens to not only wipe out the financial wealth and life savings of an entire nation, but may potentially lead to a breakdown in the rule of law and civil war between extreme political factions trying to fill the vacuum of power.
This is real, it’s happening right now, and it’s coming to America in due time.
Read More @ SHTFPlan.com
from, The Victory Report:
by Greg Hunter, USAWatchdog:
Much of the news in the past few weeks centers around the European
debt crisis, but even bigger problems are coming to a boil in the Middle
East. First off, Syria is degrading into a full blown civil war. Rebels set jets and helicopters on fire in
an airbase in southern Syria over the weekend. The Syrian army has
been accused of a massacre that killed more than 100 people last week. After
more than a year of bloody fighting, there are growing calls for the
U.S. military to take action. This has Texas Congressman and
presidential candidate Ron Paul worried the U.S. could charge into
another quagmire. On his House of Representatives website this week,
Dr. Paul said, “As might be expected from an administration with an
announced policy of “regime change” in Syria, the reaction was to blame
only the Syrian government for the tragedy, expel Syrian diplomats from
Washington, and announce that the US may attack Syria even without UN
approval. . . .
Read More @ USAWatchdog.com
Much of the news in the past few weeks centers around the European
debt crisis, but even bigger problems are coming to a boil in the Middle
East. First off, Syria is degrading into a full blown civil war. Rebels set jets and helicopters on fire in
an airbase in southern Syria over the weekend. The Syrian army has
been accused of a massacre that killed more than 100 people last week. After
more than a year of bloody fighting, there are growing calls for the
U.S. military to take action. This has Texas Congressman and
presidential candidate Ron Paul worried the U.S. could charge into
another quagmire. On his House of Representatives website this week,
Dr. Paul said, “As might be expected from an administration with an
announced policy of “regime change” in Syria, the reaction was to blame
only the Syrian government for the tragedy, expel Syrian diplomats from
Washington, and announce that the US may attack Syria even without UN
approval. . . . Read More @ USAWatchdog.com
from KingWorldNews:
With
gold trading near the $1,620 level and silver approaching $30, today
King World News is pleased to share with readers a piece of legendary
technical analyst Louise Yamada’s “Technical Perspectives” report. This
information is not available to the public and we are grateful to
Louise for sharing her incredible work with KWN readers globally.
Gold: Bucking the Strong Dollar.
Gold spot price (GOLDS-1,624.10) had been hovering above the recent closing low at 1,539 and below the broken support (which became resistance) at 1,600; the 10- and 40-week MAs turned down and crossed negatively; the uptrend from 2008 was violated; and the weekly (see Figure 19, arrows) and monthly momentum studies are still on a Sell, with the downtrend in place. And then Friday’s pop through 1,600 (!) on the dollar retreat (and no doubt boosted by short covering).
Yamada continues @ KingWorldNews.com
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With
gold trading near the $1,620 level and silver approaching $30, today
King World News is pleased to share with readers a piece of legendary
technical analyst Louise Yamada’s “Technical Perspectives” report. This
information is not available to the public and we are grateful to
Louise for sharing her incredible work with KWN readers globally. Gold: Bucking the Strong Dollar.
Gold spot price (GOLDS-1,624.10) had been hovering above the recent closing low at 1,539 and below the broken support (which became resistance) at 1,600; the 10- and 40-week MAs turned down and crossed negatively; the uptrend from 2008 was violated; and the weekly (see Figure 19, arrows) and monthly momentum studies are still on a Sell, with the downtrend in place. And then Friday’s pop through 1,600 (!) on the dollar retreat (and no doubt boosted by short covering).
Yamada continues @ KingWorldNews.com
By: Patti Domm, CNBC:
The prospect that the world’s central bankers will juice the banking system with a new wave of easing sent stocks flying and the euro rallying.
Treasurys and bunds yields snapped higher as investors unloaded securities that were the safe havens of choice just a week ago. Commodities also soared, with oil up more than 2 percent.
“There’s just been, for the last 48, 72 hours a growing feeling that a 10 percent decline in the stock market is as deep a decline as you would get with Ben Bernanke lurking tomorrow,” said Dan Greenhaus, global strategist with BTIG.
The Dow soared more than 200 points in a rally fed by sharp gains in financial stocks, like Morgan Stanley, Citigroup, JPMorgan, and Bank of America. The European banking sector moved higher Tuesday and continued to rally, along with U.S. banks, in a more supercharged rally Wednesday.
Read More @ CNBC
from TrimTabs:
from TruthNeverTold :
I would like to Thank Kevin O. our 7th donor, for his very generous donation. The prospect that the world’s central bankers will juice the banking system with a new wave of easing sent stocks flying and the euro rallying. Treasurys and bunds yields snapped higher as investors unloaded securities that were the safe havens of choice just a week ago. Commodities also soared, with oil up more than 2 percent.
“There’s just been, for the last 48, 72 hours a growing feeling that a 10 percent decline in the stock market is as deep a decline as you would get with Ben Bernanke lurking tomorrow,” said Dan Greenhaus, global strategist with BTIG.
The Dow soared more than 200 points in a rally fed by sharp gains in financial stocks, like Morgan Stanley, Citigroup, JPMorgan, and Bank of America. The European banking sector moved higher Tuesday and continued to rally, along with U.S. banks, in a more supercharged rally Wednesday.
Read More @ CNBC
from TrimTabs:
from TruthNeverTold :
from Liberty Blitzkrieg
Excellent article here by Simon Johnson, the former chief economist
for the IMF and a professor at MIT’s Sloan business school. I think the
following paragraph pretty much summarizes the root cause of America’s
decline into Banana Republic status…
The historical evidence is overwhelming. Many societies have done well for a while – until powerful people get out of hand. This is an easy pattern to see at a distance and in other cultures. It is typically much harder to recognize when your own society now has an elite less subject to effective constraints and more able to exert power in an abusive fashion. And given the long history of strong institutions in the United States, it appears particularly difficult for some people to acknowledge that we have serious governance issues that need to be addressed.
Read More @ LibertyBlitzkrieg.com
BTFD...
Excellent article here by Simon Johnson, the former chief economist
for the IMF and a professor at MIT’s Sloan business school. I think the
following paragraph pretty much summarizes the root cause of America’s
decline into Banana Republic status…The historical evidence is overwhelming. Many societies have done well for a while – until powerful people get out of hand. This is an easy pattern to see at a distance and in other cultures. It is typically much harder to recognize when your own society now has an elite less subject to effective constraints and more able to exert power in an abusive fashion. And given the long history of strong institutions in the United States, it appears particularly difficult for some people to acknowledge that we have serious governance issues that need to be addressed.
Read More @ LibertyBlitzkrieg.com
BTFD...
by Patrick A. Heller, Numismaster.com:
Suddenly,
it seems like government and finance officials around the world are
starting to parrot the words I have been saying for the past year or so.
The financial news from almost every nation is scary. After the
horrible U.S. non-farm jobs report last Friday, a groundswell of demand
for physical gold and silver quickly developed and continued through Monday evening.
In response to the surge in demand, the price of gold jumped 4 percent last Friday, its highest percentage one-day gain since last summer. By Monday evening, dealers were starting to run out of inventory for immediate delivery. However, delivery delays are still short and premiums remain reasonable. If strong demand for physical metals continues for at least a few more days, however, you are likely to see delivery times extend into the future and premiums for live inventory start to rise.
Read More @ Numismaster.com
BTFD...
Suddenly,
it seems like government and finance officials around the world are
starting to parrot the words I have been saying for the past year or so.
The financial news from almost every nation is scary. After the
horrible U.S. non-farm jobs report last Friday, a groundswell of demand
for physical gold and silver quickly developed and continued through Monday evening.In response to the surge in demand, the price of gold jumped 4 percent last Friday, its highest percentage one-day gain since last summer. By Monday evening, dealers were starting to run out of inventory for immediate delivery. However, delivery delays are still short and premiums remain reasonable. If strong demand for physical metals continues for at least a few more days, however, you are likely to see delivery times extend into the future and premiums for live inventory start to rise.
Read More @ Numismaster.com
BTFD...
from Silver Doctors:
The ‘physical’ inventory paper shuffle continued Tuesday in COMEX
silver vaults, as a total of 2.3 million ounces of ‘silver’ was moved in
and out of various vaults.
COMEX WAREHOUSE SILVER INVENTORY UPDATE 6/6/12
While The Doc is not a fan of LFMAO, perhaps Silver Party Rock should be the CME’s new Silver Anthem.
Every day I’m shufflin, shufflin.
What do you think was moved around COMEX warehouses Tuesday:
2.3 million physical ounces of these (that’s 460 Five-Thousand-oz bars):
Read More @ SilverDoctors.com
COMEX WAREHOUSE SILVER INVENTORY UPDATE 6/6/12
While The Doc is not a fan of LFMAO, perhaps Silver Party Rock should be the CME’s new Silver Anthem.
Every day I’m shufflin, shufflin.
What do you think was moved around COMEX warehouses Tuesday:
2.3 million physical ounces of these (that’s 460 Five-Thousand-oz bars):
Read More @ SilverDoctors.com
Who will be our 8th?
Thank You
I'm PayPal Verified
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