from WeAreChange
Sideways Silver Market
by Keith Weiner
Acting Man
Fundamental Developments – Scarcity of Precious Metals Increases Slightly
Not much price action at the metals tables in the casino. Gold -$7, and silver -$0.10. Gold to silver ratio unchanged.
This will be a brief report, due to the rigors of travel this week.
[…] Read on for the only true picture of the fundamentals of the monetary metals. But first, here’s the graph of the metals’ prices.
[…] Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio.
Yellen Wants US Economy to Keep Running “Hot” (Or is it “Running on Empty?”)
by Anthony B. Sanders
Anthony B. Sanders’ Blog
Federal Reserve Chair Janet Yellen spoke at a Boston Fed conference on why the US is experiencing substandard economic growth.
(Bloomberg) — Federal Reserve Chair Janet Yellen said there are “plausible ways” that running the U.S. economy hot could fix damage caused by the Great Recession, laying out the argument for keeping monetary policy easy without taking an interest-rate hike off the table this year.
“Increased business sales would almost certainly raise the productive capacity of the economy by encouraging additional capital spending,” Yellen told a Boston Fed conference Friday dedicated to examining the elusive economic recovery. “A tight labor market might draw in potential workers who would otherwise sit on the sidelines.”
The Sedition Act: The Bad Penny Returns
by Jeff Thomas
International Man
In much of what was formerly known as “the free world”, freedom is being dramatically curtailed by governments. Nowhere is this truer than in the US. I discussed the future of freedom of speech with an American recently. She postulated that it could never be taken from her, as she was assured freedom of speech under the Constitution. She’s correct in the latter part of her statement. Her Constitution clearly states:
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof, or abridging the freedom of speech.”
But as to the former part of her statement, that she could never have her freedom of speech removed is, I believe, entirely incorrect. Not only is her freedom of speech currently at risk, but this is nothing new in the US. The first suspension of this constitutional right came as early as 1798.
73% Of Republicans Say Election Could Be “Stolen” As Trump Slams “Rigged Elections”
from Zero Hedge
The Trump campaign stepped up their “election rigging” rhetoric over the weekend with a tweet storm from Trump that blasted the “dishonest and distorted media” working in coordination with the Clinton campaign and alleged voter fraud at polling places.
[…] Trump surrogate, Rudy Giuliani also appeared on CNN and made some of the more aggressive election rigging claims we’ve heard so far in this election cycle. Among other things, Giuliani said that the election is “absolutely being rigged” with dead people voting in numerous precincts as Democrats bus people from polling station to polling station where they vote “four, five, six, seven, eight, nine times.” Finally, Giuliani concluded by saying “if you want me to tell you that the elections of Chicago and Philadelphia are going to be fair, I would have to be a moron to say that.” Per Bloomberg:
Boston Fed’s Rosengren Makes Case for Reverse Operation Twist
Fed shouldn’t wait to hike interest rates
by Greg Robb
Market Watch
Boston Fed President Eric Rosengren wants the market to be aware that the central bank could act to mitigate a potential bubble brewing in the bond market.
The extraordinary powers the Fed used to help the economy get out of the financial crisis can now do the reverse and raise long-term Treasury yields. Rosengren sat down with MarketWatch to discuss his support for a quarter-point rate hike at the September Fed policy committee meeting.
He elaborated on a speech he gave on Friday at the start of a conference on the economy at his regional bank when he said “if one were concerned about the historically low 10-year Treasury…rates, perhaps because of potential financial stability concerns, the balance sheet composition could be adjusted to steepen the yield curve.”
The 2016 Election Is Rigged – Fortunately
by Gary North
LewRockwell.com
The liberal Democrat site Salon.com has done yeoman service by publishing three excellent articles on how and why the House of Representatives will not go Democratic in November.
[…] The reason is Elbridge Gerry, one of two “Founding Fathers” who really did understand practical politics. (The other was Aaron Burr.) He devised the system known as Gerrymandering. He was a Jeffersonian who figured out how to stymie the Federalists by re-drawing the districts of the Massachusetts state senate. He showed the state legislature, then under control by the Jeffersonians, how to design long, meandering districts that would embrace large numbers of Federalists, leaving the rest of the state filled with tightly knit House districts with just enough Jeffersonians living within them to win. This also turned out to work great for the House of Representatives. Here is the Wikipedia entry:
Property Bubble in Ireland Developing Again
by Mark O’Byrne
GoldCore
Budget 2017: “Good Work To Halt Second Property Crash Undone In A Day”
David McWilliams has pointed out in two of his most recent articles how Budget 2017 and the latest mortgage tax grant risk creating a “second property crash”: […]
“We are faced with similar concerns on the horizon now. Unlike 2008, when this country went bust, or in 2012, when the euro as a currency was in real danger of falling apart, there is no serious internal threat. In 2012, the world’s central bankers cutting interest rates to zero prevented the disintegration of the euro. This may have saved the currency then, but it means that today central bankers have no ammunition left if there is another downturn. Interest rates are as low as they can go.
Ignorance is More Costly in Politics Than in Markets
by Gary Galles
Mises.org
For months, I have seen articles about the massive economic ignorance infesting candidates’ views and how they would “fix” what they think are the nation’s problems. They essentially say that neither candidate knows enough to pass an economics principles course, much less enough to advance Americans’ general welfare. I cannot disagree.
The candidates sometimes say things with some sense (recognizing burdens from regulation). But, they have failed in their understanding of opportunity cost (free college and paid leave) and comparative advantage (protectionism); that market incomes are earned by benefiting others (making “the rich” pay more); property rights and the role of profits (suggestions for mandatory profit sharing); the market for labor (proposals to hike minimum wages and opposition to right-to-work laws); and capital (wanting greater taxation of owners of capital but calling taking your resources for others an investment).
Singapore Makes Another Bid for Asia to Help Set Gold Price
by Manolo Serapio Jr.
Reuters.com
Singapore will study the possibility of bringing the gold benchmark pricing in London to users in Asia, in a move that would also allow market participants in the world’s top consuming region to help set the price of bullion.
Home to the world’s biggest buyers China and India, Asia’s importance has been on the rise as the key source of demand for gold, but bullion traders in the region are often exposed to intraday price volatility and overnight foreign exchange risks with benchmark prices currently being set out of London.
The Singapore Bullion Market Association, London Bullion Market Association and Intercontinental Exchange Benchmark Administration (IBA) will launch a joint feasibility study on the development of “LBMA pre-AM gold price at 2 pm Singapore time”, Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore, told an industry conference on Monday.
Ross Norman: Central Bank Manipulation of Gold Wouldn’t Surprise Me
by Chris Powell
GATA.org
GATA Secretary Chris Powell has invited me to reply to his October 15 commentary —
http://www.gata.org/node/16839
— in which he replied to my article of the 14th, wherein I rebutted an academic study that concluded that the London gold price fix was manipulated:
http://news.sharpspixley.com/article/london-fixings-the-case-is-laid-bar…
If you look at my article (and indeed previous ones) you will see that my aim is to defend the integrity of the London gold fix as a method to derive a fair benchmark price. My aim is not to defend the integrity of the institutions operating the fix.
The reason for this is that I simply do not have the visibility over all fixing members and their every trade that I would need to say that these guys are 100-percent honest. No one does.
Permanent Monetization?
by Chuck Butler
Daily Pfennig
Good Day… And a Marvelous Monday to you! Well, the demons revisited me last night, and it was hell as I would imagine it… But… Here I am, recovered enough to sit down, and write a note to everyone today. I’m sad because, at the office, Pam had spooled up my fave deli for lunch today, and I was going to stay through lunch so I could enjoy a nice pastrami and pepper cheese sandwich with spicy mustard! UGH! Oh well, Jr. Walker and the All-Stars greet me this morning with their song: What Does It Take… (great saxophone playing in this song!)
Well, the dollar is back to its tricks of early last week, when it took no prisoners… As I looked over the currencies, metals, bonds, and commodities this morning, I couldn’t find one asset with a gain VS the dollar… Not one! Of course, by the time I finish this letter, there might be one or two, but at this point, it looks like one of those days were non-dollar holders will want to duck and take cover. Or… As I always point out… It does give buyers an opportunity to buy at cheaper levels… .
Rattled German CEOs Seek “Revival of Germany Inc.” as “Protective Wall” Against US and China
by Wolf Richter
Wolf Street
In response to the “destabilization of the world.”
About 20 German industry chieftains, rattled by the hits German companies have recently taken, including Deutsche Bank and Volkswagen, spent Saturday and Sunday two weeks ago on the phone with each other. They were fretting about the future of Germany’s export-dependent industry and outlining solutions. Some of the participants have since talked to the German daily, Die Welt, which published its report on Sunday.
Participants included Siemens CEO Joe Kaeser, BASF CEO Kurt Bock, Deutsche Bank CEO John Cryan, BDI (Association of German Industry) president Ulrich Grillo, and BDI General Manager Markus Kerber.
Bank of England Deputy Says Plunging Pound is a ‘Shock Absorber’ for the Economy
Ben Broadbent says the falling pound has helped cushion the immediate impact of the EU vote on trade
by Marion Dakers, Financial Services Editor
Telegraph.co.uk
One of the Bank of England’s leading policymakers has said the plummeting price of the pound has been an important “shock absorber” for the British economy in the aftermath of the EU referendum.
With the pound now almost a fifth less valuable compared to the dollar since the vote on June 23, the Bank’s deputy governor Ben Broadbent said the decline was helping soothe some of the effects of having trade relationships thrown into question.
“Having a flexible currency is an extremely important thing, especially in an environment when your economy faces shocks that are different from your trading partners,” Mr Broadbent told BBC Radio 5.
Dallas Police Retiring in Droves, Taking Lump Sum Pensions, Fearing the Money Isn’t There (And It Isn’t)
by Mike ‘Mish’ Shedlock
Mish Talk
The Dallas police and firefighters pension fund has just 45% of the money it needs to cover benefits. The fund rates to be out of money in 15 years at the current rate of withdrawals.
For those eligible, the sane thing to do is retire and take a lump sum payout before the money is all gone.
That’s precisely what’s happening, and it is further pressuring the system.
Please consider Dallas Police See Exodus as Doubts Rise on Pension Promises.
RIP Conservative America
by Bill Bonner
Acting Man
Curiouser and Curiouser
BALTIMORE – “How President Clinton Will Handle a Hostile Congress,” reads a headline in the Financial Times. The “pink paper” isn’t waiting for the votes to be counted. Many Republicans, too, have given up trying to get Donald Trump into the White House.
[…] They’re abandoning him like a hunk of old cheese, hoping the smell doesn’t stick to their clothes; they want to get reelected. And so, the curious presidential election of 2016 just gets curiouser. What a spectacle!
Instead of attacking his opponent and her policies – which should be easy targets – Mr. Trump takes aim at his fellow Republicans. Senator John McCain is “very foul mouthed,” Trump snarled on Twitter.
House Majority Leader Paul Ryan is a “very weak and ineffective leader.” And “disloyal” Republicans are “far more difficult than Crooked Hillary.”
QE/ZIRP Is Crushing the Global Supply Chain, Product Quality and Profits
by Charles Hugh Smith
Of Two Minds
We will soon wish we were allowed an honest business cycle recession once the current overcapacity implodes the global economy.
We all know the quality of many globally sourced products has nosedived in the past few years. I addressed this in Inflation Hidden in Plain Sight (August 2, 2016): not only is inflation (i.e. getting less quantity for your money compared to a few years ago) visible in shrinking packages, it’s present but largely invisible in declining quality.
When products fail in a matter of months, we’re definitely getting less for our money, as what we’re buying is a product cycle, not just the product itself. We buy a product expecting it to last a certain number of years, and when it fails in a matter of weeks or months, this failure amounts to theft and/or fraud.
When a costly repair is required in a relatively new product, we’re getting less for our money, and when the repair itself fails (often as a result of a sub-$10 or even sub-$1 part), we end up paying twice for the inferior product.
Dow Looking Forward for Week of 10/17/2016
by Martin Armstrong
Armstrong Economics
Apparently, there are a lot of people calling for a crash in the stock market as usual claiming it looks just like 1987. Sorry, there is nothing of that magnitude showing up at this time. We did elect one Weekly Bearish Reversal back at 18368. However, the main bank of support lies at 17710 followed by 17330. Only a weekly closing below 17330 would hint of a more serious correction. We did rally back and closed above technical support at 18068 last Friday. Now we need to pay attention to this area for a breach of 18050 should mean PAY ATTENTION. A break of 17990 will be more of a warning and this means last week’s low of 17959.95 comes into play. This would warn of a possible drop to 17710.
Extreme Caution – ETF Update
by Monty Pelerin
Monty Pelerin’s World
Caution, perhaps extreme caution, is in order regarding the stock market. This caution continues to be reflected in the Dynamic Momentum System which ranks ETFs. The top-ranked ETFs continue to be safety-oriented. BIL, a cash equivalent, ranks highest.
This note shall be short. I have been traveling and had my laptop pass away. The DMS system(s) continue to rank BIL (cash) as the highest ranked position. UNG (natural gas ranks second). The SSS switch continues to recommend cash. That recommendation has not changed in about 7 or 8 weeks. In retrospect, it has been correct.
All of the trading systems signal caution. If you have been following these momentum rankings, you are already out of the market (at least for whatever portion devoted to DMS — SSS trading).
From a fundamental standpoint, there has been little reason to participate in equity markets for the last year or more.
Western Hypocrisy, and Why it Makes the World a Dangerous Place
by Michael Jabara Carley
Strategic Culture Foundation
The West has always been a great trembling hive of hypocrisy, portraying itself as liberal, progressive, civilised and democratic. You know the descriptors; the list is very long. Take the United States, for example, it is the «shining house upon the hill»: just, altruistic, democratic, with a «mission to extend individual liberties throughout the world».
«Our cause has been the cause of all mankind», Lyndon Johnson declared during the 1964 presidential election campaign. To reinforce his argument Johnson cited President Woodrow Wilson, who had similar things to say about American virtue. Nothing has changed: listen to Barack Obama talk about the altruism of the United States. ‘We are the «exceptional nation»,’ he often says.
Terrorism In The Form of Arson – The American Left
by Karl Denninger
Market-Ticker.org
RALEIGH, NC – A North Carolina Republican Party office in Orange County was firebombed overnight, causing major damage and destruction. Thankfully, there was no loss of life.
The explosive device was thrown through the window of the office, and the words, “Nazi Republicans, leave town or else,” were painted on a nearby building. The news comes less than 25 days before Election Day, as dedicated NCGOP volunteers and activists are canvassing the state and spending long hours getting out the vote and exercising their rights in a free and open democratic society.
Let me guess — the Democrats will claim this was a Russian arsonist?
I think not.
Where is the wall-to-wall coverage of not alleged tampering with an election but actual, in-your-face felony violence in an attempt to disrupt political speech and activity along with a clear threat, backed by arson, to murder anyone who doesn’t vote as they wish!
Tinfoil: It’s Getting Harder To Leave Home Without It
by Mark St.Cyr
Mark St.Cyr
It used to be when someone mentioned the term “tinfoil cap wearing,” “conspiracy theorist,” “lunatic fringe,” etc, etc. It was usually in reference to a subset of individuals or groups that resided in some dark corners or basements believing “mind control” went far beyond just propaganda. i.e., It was actually the government (or aliens!) sending out undetectable frequencies directly into the minds of the masses. And, the only protection was: tinfoil. With it’s best use fashioned and adorned as a cap. It’s been a running joke (as it should be) longer than most can remember.
Yet, with all that said, it’s getting harder to be out amongst the public as an informed person and not feel as if there isn’t something to all the “lunacy.” For if you speak to nearly anyone these days be it family, friends, coworkers, or the occasional overheard conversations of strangers. You can’t help wondering: how can so many be so clueless? Or worse: how is it they can argue some form of righteous stance about this, or that, all the while they are “knee-deep” themselves in the same (if not worse) muck they say is being slung from the other side?
The Most Important “Truth Bomb” You May Ever Read!
by Bill Holter
JSMineset
Dear CIGAs,
This link was sent to us yesterday. It will take you well more than one hour to read it. DO NOT skim this, reading it more than once is highly advised. Call it the ultimate “TRUTH BOMB” if you will. GATA and their work is mentioned several times as “gold” was a very large part of the crime. After reading this, Jim and I are uplifted in the fact that the truth is finally coming out. 911 was entirely about hiding crimes, destroying evidence and terminating investigations to clean the slate.