from Silver Doctors:
Dr Willie has advised us that Morgan Stanley appears to be on the ropes. I’ll weigh in with my observations and some ‘on the ground’ suggestions.
MS failure? That would explain the 600 CPAs hired at $500 an hour to dive into an unnamed bank on Wall Street. No one has named the bank or banks that received a hypo from the Fed in the last month. It was $800 million and this is the first time since 2008 that the Fed has done a hypo. Someone was real short on liquidity.
If you are in the umbra of MS your money will be gone ala MFG, protected by the 7th Circuit court ruling that your money used as collateral is now the property of the creditor.
IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL: If you are in the penumbra your money is at complete risk given the new rules in the MMA market that are designed to prevent bank runs. The southern Euro tier countries have limits that range from $400 to $1,500 max withdrawals a day coupled with draconian currency and PM border controls. If your money is in the bank you will not be able to get to in.
Spain has seen 5% of its bank deposits flee in July. The bank run is a full blown race to exits. Remember this one fact. IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.
Read More @ Silver Doctors
With the Nasdaq and other markets closed on Monday in observance of
Labor Day, it just may be that the Morgue has a bit less manipulative
control than they might like until U.S. markets re-open Tuesday. That
may be wishful thinking on our part, but regardless Silver is knocking at $32 tonight.
SILVER: The Achilles’ Heel
Dr Willie has advised us that Morgan Stanley appears to be on the ropes. I’ll weigh in with my observations and some ‘on the ground’ suggestions.MS failure? That would explain the 600 CPAs hired at $500 an hour to dive into an unnamed bank on Wall Street. No one has named the bank or banks that received a hypo from the Fed in the last month. It was $800 million and this is the first time since 2008 that the Fed has done a hypo. Someone was real short on liquidity.
If you are in the umbra of MS your money will be gone ala MFG, protected by the 7th Circuit court ruling that your money used as collateral is now the property of the creditor.
IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL: If you are in the penumbra your money is at complete risk given the new rules in the MMA market that are designed to prevent bank runs. The southern Euro tier countries have limits that range from $400 to $1,500 max withdrawals a day coupled with draconian currency and PM border controls. If your money is in the bank you will not be able to get to in.
Spain has seen 5% of its bank deposits flee in July. The bank run is a full blown race to exits. Remember this one fact. IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.
Read More @ Silver Doctors
SILVER: The Achilles’ Heel
Read More @ TheEconomicCollpaseBlog.com
by The Doc, Silver Doctors:
Gold nearly touched $1700 Friday on speculation Ben Bernanke and The Fed will soon publicly announce QE3.
While additional QE impacts the price of gold from a demand side standpoint with traders and investors acquiring the asset in order to protect themselves from currency devaluation and debasement, gold’s supply side might have just experienced a black swan event, as 12,000 South African gold miners have followed their platinum miner counter-parts by going on strike from Gold Fields.
Gold Fields is the world’s 4th largest gold mine, and the strike is costing the firm 1,660 ounces of gold a day in lost production according to Gold Fields’ spokesman Sven Lunsche.
Read More @ Silver Doctors
Gold nearly touched $1700 Friday on speculation Ben Bernanke and The Fed will soon publicly announce QE3.
While additional QE impacts the price of gold from a demand side standpoint with traders and investors acquiring the asset in order to protect themselves from currency devaluation and debasement, gold’s supply side might have just experienced a black swan event, as 12,000 South African gold miners have followed their platinum miner counter-parts by going on strike from Gold Fields.
Gold Fields is the world’s 4th largest gold mine, and the strike is costing the firm 1,660 ounces of gold a day in lost production according to Gold Fields’ spokesman Sven Lunsche.
Read More @ Silver Doctors
by Anthony Wile, The Daily Bell:
Introduction: John Butler is a Marin County native who studied economics, history, philosophy and international politics at university before embarking on a career in the financial industry. He worked for over 15 years as an interest rate, currency and commodity strategist at major investment banks in North America and Europe prior to founding his own independent investment and advisory firm, Amphora Capital. While at Lehman Brothers in the mid-2000s, he was ranked #1 for Interest Rate Strategy in the Institutional Investor Survey. He currently serves as the Chief Investment Officer of the Amphora Commodities Alpha Fund and is the publisher of the popular Amphora Report investment newsletter, featured on a number of prominent financial websites. John is also the author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard, published by John Wiley and Sons (2012). A frequent speaker and presenter at investment conferences and seminars around the world, his research has also been featured in the Wall Street Journal, Financial Times, Boerzenzeitung and the Frankfurter Allgemeine Zeitung, among other publications.
Daily Bell: Give us some sense of how you got interested in finance.
John Butler: My original interest in finance was as an underappreciated aspect of history. Nothing important happens in the world that is not financed in some way, yet the sources and methods of financing for international trade, industrial expansions and innovations, wars, revolutions, political campaigns, colonialism, imperialism, etc., generally do not feature prominently in the history books.
While studying toward a PhD in International Economics and Finance, I learned much about what academia is really like and decided I was better suited to the real world of practical finance. And so I headed off to Wall Street and took the best job I could find.
Read More @ TheDailyBell.com
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from cgreene34 :
Introduction: John Butler is a Marin County native who studied economics, history, philosophy and international politics at university before embarking on a career in the financial industry. He worked for over 15 years as an interest rate, currency and commodity strategist at major investment banks in North America and Europe prior to founding his own independent investment and advisory firm, Amphora Capital. While at Lehman Brothers in the mid-2000s, he was ranked #1 for Interest Rate Strategy in the Institutional Investor Survey. He currently serves as the Chief Investment Officer of the Amphora Commodities Alpha Fund and is the publisher of the popular Amphora Report investment newsletter, featured on a number of prominent financial websites. John is also the author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard, published by John Wiley and Sons (2012). A frequent speaker and presenter at investment conferences and seminars around the world, his research has also been featured in the Wall Street Journal, Financial Times, Boerzenzeitung and the Frankfurter Allgemeine Zeitung, among other publications.
Daily Bell: Give us some sense of how you got interested in finance.
John Butler: My original interest in finance was as an underappreciated aspect of history. Nothing important happens in the world that is not financed in some way, yet the sources and methods of financing for international trade, industrial expansions and innovations, wars, revolutions, political campaigns, colonialism, imperialism, etc., generally do not feature prominently in the history books.
While studying toward a PhD in International Economics and Finance, I learned much about what academia is really like and decided I was better suited to the real world of practical finance. And so I headed off to Wall Street and took the best job I could find.
Read More @ TheDailyBell.com
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from Zero Hedge:
Two weeks ago we showed dramatic footage as
striking miners at Lonmin’s Marikana South Africa platinum mine were
fired upon by local the local cops, killing dozens of protesters in the
process. Aside from the implications of what happens when the
establishment loses control and desperate workers revolt with complete
disregard for their own safety, the strike has crippled the world’s
third largest platinum maker, and has cut daily production of the
precious metal by 2,500 ounces. Since then the Lonmin situation has
remained critical, with just 6% of the South African company’s workers
turning up for work last week. In the meantime, the strike bug has gone
airborne, and has now impacted Gold Fields, the world’s fourth largest
gold mine. From the FT:
“Some 12,000 workers at a gold mine operated by Gold Fields have gone
on strike, in the latest industrial strife to hit South Africa’s mining
industry. Sven Lunsche, a spokesman for Gold Fields, said the wild-cat
strike was not directly related to the crisis at the Marikana platinum
complex, where 44 people have been killed in violence after rock drill
operators downed their tools to demand higher wages on August 10. But
he acknowledged that “the atmosphere in the mining industry is very
volatile at the moment and this may have had an indirect impact on the
situation”. The bottom line: “The strike was costing the company 1,660 gold ounces of production a day,
Mr Lunsche said.” In other words in addition to the fear of a
resumption in money printing by central bankers, the gold price will now
have to deal with the added fear that supply disruptions just may
hamper China’s stealthy hording attempts to become the world’s biggest
holder of physical gold, or at least at sub $2000/oz prices.
Read More @ Zero Hedge
Two weeks ago we showed dramatic footage as
striking miners at Lonmin’s Marikana South Africa platinum mine were
fired upon by local the local cops, killing dozens of protesters in the
process. Aside from the implications of what happens when the
establishment loses control and desperate workers revolt with complete
disregard for their own safety, the strike has crippled the world’s
third largest platinum maker, and has cut daily production of the
precious metal by 2,500 ounces. Since then the Lonmin situation has
remained critical, with just 6% of the South African company’s workers
turning up for work last week. In the meantime, the strike bug has gone
airborne, and has now impacted Gold Fields, the world’s fourth largest
gold mine. From the FT:
“Some 12,000 workers at a gold mine operated by Gold Fields have gone
on strike, in the latest industrial strife to hit South Africa’s mining
industry. Sven Lunsche, a spokesman for Gold Fields, said the wild-cat
strike was not directly related to the crisis at the Marikana platinum
complex, where 44 people have been killed in violence after rock drill
operators downed their tools to demand higher wages on August 10. But
he acknowledged that “the atmosphere in the mining industry is very
volatile at the moment and this may have had an indirect impact on the
situation”. The bottom line: “The strike was costing the company 1,660 gold ounces of production a day,
Mr Lunsche said.” In other words in addition to the fear of a
resumption in money printing by central bankers, the gold price will now
have to deal with the added fear that supply disruptions just may
hamper China’s stealthy hording attempts to become the world’s biggest
holder of physical gold, or at least at sub $2000/oz prices.Read More @ Zero Hedge
by Brandon Turbeville, Activist Post
Fresh on the heels of the Republican National Convention in Tampa, Florida, the Democratic wing of the one-party bird is set to begin their own three-day circus party in the city of Charlotte, North Carolina. As is the case every year, both parties either have or will be accompanied with the symbols of freedom that every American has come to know and love – militarized police, random checkpoints, warrantless searches, and a virtual lockdown of the entire area surrounding the convention.
Of course, while the average person who lives, works, and produces in the general area is subjected to, at best, a major inconvenience of their daily routine and, at worst, a gross violation of their Constitutional rights under a police state crackdown, many of the more upscale attendees of the DNC will enjoy what amounts to royal immunity as they skirt about town and partake of some of the finest women (or men) and drugs that money can buy.
Read More @ Activist Post
from tradgedyandhope:
Fresh on the heels of the Republican National Convention in Tampa, Florida, the Democratic wing of the one-party bird is set to begin their own three-day circus party in the city of Charlotte, North Carolina. As is the case every year, both parties either have or will be accompanied with the symbols of freedom that every American has come to know and love – militarized police, random checkpoints, warrantless searches, and a virtual lockdown of the entire area surrounding the convention.
Of course, while the average person who lives, works, and produces in the general area is subjected to, at best, a major inconvenience of their daily routine and, at worst, a gross violation of their Constitutional rights under a police state crackdown, many of the more upscale attendees of the DNC will enjoy what amounts to royal immunity as they skirt about town and partake of some of the finest women (or men) and drugs that money can buy.
Read More @ Activist Post
from tradgedyandhope:
from KingWorldNews:
On the heels of the spectacular surge in gold and silver, Egon von
Greyerz and Dan Norcini update King World News listeners on the critical
developments taking place in both markets. Norcini discusses the
crucial changes in the COT structure, but first, Egon von Greyerz, of
Materhorn Asset Management out of Switzerland, had this to say about
Bernanke’s speech: “On the one hand he says we shouldn’t expand the
balance sheet further because that isn’t good for the finances of the
Fed. But on the other hand, and this is the important statement at the
end of his speech, he talks about daunting economic challenges that
confront our nation.
He talks about the stagnation of the labor market, which is in particular a ‘grave concern.’ Then, his final statement, is the most important thing for the Fed is to support economic growth and job creation. Then he says, ‘Taking due account of the uncertainties and its policy tools, the Fed will provide additional policy accommodation as needed, to promote a stronger economic recovery.’”
Egon von Greyerz continues @ KingWorldNews.com
On the heels of the spectacular surge in gold and silver, Egon von
Greyerz and Dan Norcini update King World News listeners on the critical
developments taking place in both markets. Norcini discusses the
crucial changes in the COT structure, but first, Egon von Greyerz, of
Materhorn Asset Management out of Switzerland, had this to say about
Bernanke’s speech: “On the one hand he says we shouldn’t expand the
balance sheet further because that isn’t good for the finances of the
Fed. But on the other hand, and this is the important statement at the
end of his speech, he talks about daunting economic challenges that
confront our nation.He talks about the stagnation of the labor market, which is in particular a ‘grave concern.’ Then, his final statement, is the most important thing for the Fed is to support economic growth and job creation. Then he says, ‘Taking due account of the uncertainties and its policy tools, the Fed will provide additional policy accommodation as needed, to promote a stronger economic recovery.’”
Egon von Greyerz continues @ KingWorldNews.com
[Ed. Note:
Murdering "workers" who step out of line harkens back to the British
Colonial model in all its brutality and horror - a greed and
exploitation based economic model that's always been tremendously
destructive to the environment, society and humanity.]
from TheRealNews:
The murder of striking miners reveals that the deep apartheid pattern of the labor market, particularly in the mining industry, has not changed.
AUDJPY is getting smacked hard in this evening's admittedly thin trading given the US holiday. China's double-whammies of PMI data (both official and HSBC versions - with the latter revised lower from Flash to its lowest level since March 2009) and some weak Aussie retail sales data is weighing very heavily on the critical carry trade pair. S&P 500 futures traded down in line with AUDJPY from Friday's close but once the China PMI came as weak as it was so the 'Good is Bad', the PBoC have to do something crowd started buying and dragged ES up a few points. Juxtaposing these dismal macro data was a better than expected China Services PMI and Aussie manufacturing index - as the Schrodinger 'economy is good and bad' headlines continue to confound. For the 'bad-is-good' crowd who see stimulus as the solution, we offer three words 'steel overcapacity' and 'malinvestment' and a must-read story from Reuters on the Chinese turning on themselves...
Over
the past months (and particularly in the last weeks), we have
increasingly read negative comments on the ongoing zero-interest rate
policy (ZIRP) and in some instances, negative-interest rate policy
(NIRP). Today, we want to examine the origins of the idea that
ultra-low rates of interest can exist, how this idea came about, why it
was flawed and how it leads to an informal economic system. It
was a fallacy based on misunderstanding of the rate of interest and
human action. Another way of examining this is the following: The zero interest rate indicates that time is free. And as anything that is free is wasted, time will also be wasted.
It should be clear that there is an inconsistency in simultaneously
believing that investment demand and savings are mainly driven by income
but that it is necessary to lower the interest rate to boost
investment, as the Fed does... and the Fed is Keynesian! Finally, we
note one last thing: As productivity, employment and production
decrease, even a steady and low rate of inflation has the potential to
morph into hyperinflation.
The
Summer of hope is over. Analysts return to their desks amid a
grand-tour of conferences, industry gatherings, and company meetings,
and - as has happened on average for the last twelve years -
expectations are notched down from first-half-of-the-year 'hope' that
this-time-is-different. Barclays' Barry Knapp notes that while macro
risks seem more balanced than last spring, equity investors face a considerably higher risk in that of elevated earnings estimates. Since 2000, the worst month for analyst estimate revision momentum (net revisions) is also October, followed by September and December
(tied). It stands to reason (though it’s tough to statistically
‘prove’) that equity investors and analysts return from vacation, attend
conferences, and cut their earnings estimates. This, in turn,
contributes to increased volatility and negative returns. While many
will be focused on broader concerns – the ECB meeting, German
Constitutional Court, presidential polls and macro data – equity
investors are likely to hear a consistent message from the ~180
conferences: the global and domestic economic outlook is not robust enough to justify 11% y/y earnings growth in 4Q12 or 12% in 2013.
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from TheRealNews:
The murder of striking miners reveals that the deep apartheid pattern of the labor market, particularly in the mining industry, has not changed.
China Manufacturing PMI At Lowest Since March 2009; Market Response 'Bad Is Good' So Far
AUDJPY is getting smacked hard in this evening's admittedly thin trading given the US holiday. China's double-whammies of PMI data (both official and HSBC versions - with the latter revised lower from Flash to its lowest level since March 2009) and some weak Aussie retail sales data is weighing very heavily on the critical carry trade pair. S&P 500 futures traded down in line with AUDJPY from Friday's close but once the China PMI came as weak as it was so the 'Good is Bad', the PBoC have to do something crowd started buying and dragged ES up a few points. Juxtaposing these dismal macro data was a better than expected China Services PMI and Aussie manufacturing index - as the Schrodinger 'economy is good and bad' headlines continue to confound. For the 'bad-is-good' crowd who see stimulus as the solution, we offer three words 'steel overcapacity' and 'malinvestment' and a must-read story from Reuters on the Chinese turning on themselves...
Human Action Under Ultra-Low Interest Rates
Over
the past months (and particularly in the last weeks), we have
increasingly read negative comments on the ongoing zero-interest rate
policy (ZIRP) and in some instances, negative-interest rate policy
(NIRP). Today, we want to examine the origins of the idea that
ultra-low rates of interest can exist, how this idea came about, why it
was flawed and how it leads to an informal economic system. It
was a fallacy based on misunderstanding of the rate of interest and
human action. Another way of examining this is the following: The zero interest rate indicates that time is free. And as anything that is free is wasted, time will also be wasted.
It should be clear that there is an inconsistency in simultaneously
believing that investment demand and savings are mainly driven by income
but that it is necessary to lower the interest rate to boost
investment, as the Fed does... and the Fed is Keynesian! Finally, we
note one last thing: As productivity, employment and production
decrease, even a steady and low rate of inflation has the potential to
morph into hyperinflation.The Inexorable Disappointment Of The Earnings 'Hope' Cycle
The
Summer of hope is over. Analysts return to their desks amid a
grand-tour of conferences, industry gatherings, and company meetings,
and - as has happened on average for the last twelve years -
expectations are notched down from first-half-of-the-year 'hope' that
this-time-is-different. Barclays' Barry Knapp notes that while macro
risks seem more balanced than last spring, equity investors face a considerably higher risk in that of elevated earnings estimates. Since 2000, the worst month for analyst estimate revision momentum (net revisions) is also October, followed by September and December
(tied). It stands to reason (though it’s tough to statistically
‘prove’) that equity investors and analysts return from vacation, attend
conferences, and cut their earnings estimates. This, in turn,
contributes to increased volatility and negative returns. While many
will be focused on broader concerns – the ECB meeting, German
Constitutional Court, presidential polls and macro data – equity
investors are likely to hear a consistent message from the ~180
conferences: the global and domestic economic outlook is not robust enough to justify 11% y/y earnings growth in 4Q12 or 12% in 2013.
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