from RT
Brexit: Individualism > Nationalism > Globalism
Decentralization and devolution of state power is always a good thing, regardless of the motivations behind such movements.
by Jeff Deist
Mises.org
Hunter S. Thompson, looking back on 60s counterculture in San Francisco, lamented the end of that era and its imagined flower-child innocence:
So now, less than five years later, you can go up on a steep hill in Las Vegas and look West, and with the right kind of eyes you can almost see the high-water mark — that place where the wave finally broke and rolled back.
Does today’s Brexit vote, win or lose, similarly mark the spot where the once-inevitable march of globalism begins to recede? Have ordinary people around the world reached the point where real questions about self-determination have become too acute to ignore any longer?
Britain Votes: All You Need to Know About Today’s Brexit Referendum and What to Look For
from Zero Hedge
Starting at 600 GMT, and continuing through 2100 GMT when polls close, Britain is conducting a historic referendum on whether to stay in the European Union on Thursday. While results from each of the 382 counting areas will be released overnight and into the morning, the market already appears to have made up its mind what will happen. Sitll, for those who have yet to vote, and everyone else following along, here are the full details of how today’s vote will take place and what to watch for (all times in GMT, an hour before local UK time).
Worst “Zombie States” in America “Deteriorate Faster, Further”
by Wolf Richter
Wolf Street
Moral Hazard Spreads: TBTF States?
During the Financial Crisis, it was California that made the headlines with “out-of-money dates” and fancy-looking IOUs with which it paid its suppliers. The booms in the stock market and the startup scene – the state is desperately hooked on capital-gains tax revenues – but also housing, construction, etc. sent a flood of moolah into the state coffers. Now legislators are working overtime to spend this taxpayer money. Gov. Jerry Brown is brandishing recession talk to keep them in check. Everyone knows: the next recession and stock-market swoon will send California back to square one.
Brexit Day – Markets Becalmed – Gold Panic Prelude – Trading Hours
by Mark O’Byrne
GoldCore
Note: Due to increased inquiries and demand, our trading desk will be open until 1900 BST today and resume trading from 0700 BST tomorrow.
BREXIT Day and the UK EU referendum is upon us today and investors are expecting more choppy trading in financial markets in the coming hours. The City of London is bracing itself for potentially the most volatile night since the sterling devaluation on Black Wednesday.
This morning, as British voters headed to the polls, sterling hit a 2016 high versus the dollar and gold in sterling terms fell to £844 per ounce, down 10% from a high of £928.85 per ounce just 5 trading days ago on June 16.
While the gold market is on the surface becalmed, there has been very significant high net worth and institutional demand in recent weeks and this is leading to an, as of yet, unacknowledged and unappreciated “panic” in the interbank gold market due to unprecedented conditions and “supply issues” as we revealed yesterday.
Comex Registered Silver Now More Leveraged Than Gold
by Steve St. Angelo
SRSRocco Report
While the world awaits the BREXIT vote, the COMEX Registered Silver Inventories reached a new record as it pertains to leverage. Matter-a-fact, the number of owners per ounce of Registered Silver is higher than gold. In the beginning of the year, COMEX Gold Registered inventory owners per ounce spiked to over 500 to 1.
However, the situation for COMEX Registered Gold has calmed down quite a bit as its inventories have risen to 1.7 million oz (Moz) from the low of a 89,000 oz in a little more than six months:
Shocking Interview from a Legend on Brexit and the Global Chaos That is Coming
from King World News
Today a legendary trader and investor gave King World News an interview that was quite shocking about what surprise action to expect in gold and global stock markets the aftermath of the Brexit vote. Victor Sperandeo has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below are the warnings and predictions issued by Sperandeo.
Victor Sperandeo: “The key is that Breixt isn’t really a legal vote, it’s an advisory vote. If “leave” wins by a small margin and there is a stock market crash, there is a printing press to buy that crash and global stock markets will come right back. The reason for that is because the vote to leave is more advisory. This is what people don’t understand. Meaning, it’s just an advisory vote to leave but it’s not mandatory for Great Britain to leave the EU.
A Very Bold Gold Prediction
by Nick Hodge
Outsider Club
Here’s a bold forecast: The value of an ounce of gold in U.S. dollars will pass the point value of the S&P 500 by New Year’s Day in 2020.
Right now gold trades at $1,266 per ounce.
[…] The S&P is at 2,092 — having bounced up against the psychological hurdle of 2,100 a few times now.
[…] But it was just a few billion free dollars ago that the S&P wasn’t in such bullish form.
This very day — June 22 — in 2012, the S&P traded in the low 1,300s while gold traded over $1,600 per ounce.
Self-Immolation of a Nation
by Karl Denninger
Market-Ticker.org
By now if you’re reading this over in Britain you’re either waking up and about to vote, or have voted.
Britain is about to make a historic decision and, I suspect, a historic mistake.
It is about to lose what is left of its identity — which, at this point, isn’t much, to be honest.
London already has a Muslim mayor. It also already has Musloids that are not held to the same standards of civil behavior that everyone else has applied to them, just as we do here and all of Europe is suffering under as well. Remember New Years? Hundreds of women being groped and worse, all by Muslims that claimed “they couldn’t help it” because said women were dressed “provocatively”? By the way, “provocative” means not wearing a hajib. How many were prosecuted? I believe the count was zero……
Brexit Broke the Stock Market — But One Sector Remains a “Buy”
by Greg Guenthner
Daily Reckoning
Traders are flying their crazy flags as Brexit voting begins today.
The stock market has turned into a rush hour traffic jam this week, complete with rubberneckers clogging up the works every time a new poll comes out indicating that Britain might vote to leave the European Union.
Yesterday’s morning melt-up was interrupted by another one of these stupid polls. A couple of news outlets reporting on a possible Brexit win is all it takes to torpedo any rally in this environment…
It’s Brexit Referendum Day
by Chuck Butler
Daily Pfennig
Good Day… And a Tub Thumpin’ Thursday to you! It’s also BREXIT referendum day! The results of the referendum could be a HUGE market maker, so we’ll have to look at that more today and tomorrow. Cards sweep the Cubs at Wrigley! That was pretty cool, especially since the Cardinals had lost all their home games last week! But the Cubs still have a 9.5 games lead, I don’t think they’re worried, especially with how good they are. I have a special treat this morning for my listening pleasure, as Robin Trower greets me with his song: Bridge of Sighs… Which seems apropos given there will be lots of sighs over the referendum results!
Where Are the Jobs? Mostly in Big Cities
by Charles Hugh Smith
Of Two Minds
Maintaining the status quo of red tape, high taxes, high junk fees and indifference to small business realities guarantees decline and failure.
It’s well known that millions of the jobs counted in employment statistics are part-time or low-paying “gig economy” self-employment. Over 9 million self-employed workers make less than $10,000 per year, and 5.5 million earn less than $5,000 per year. Granted, many of these workers may have other employment, but the point is millions of jobs that are puffing up official job totals are not full-time or even close to full-time.
Endangered Species: The Self-Employed Middle Class
Nonetheless, employment and new small businesses are expanding in some locales. According to this new study, The New Map of Economic Growth and Recovery (eig.org), growth in jobs and new business has become increasingly concentrated in a handful of high-population metropolitan counties.
Jeffrey Nichols & Chris Waltzek on GoldSeek Radio – June 22, 2016
by Chris Waltzek
GoldSeek Radio
Jeffrey Nichols of Rosland Capital, returns to the show with his latest insights on the precious metals sector – gold could top $2,000 possibly in 2016 or early next year, according to Rosland Capital. Our guest notes that the founders of this nation: Washington, Franklin, Madison and Jefferson etc.. were “Gold Bugs.” Moreover, a new gold bull market could lift silver and related shares to record levels. As the smart money like billionaires Jim Rogers / George Soros accumulate gold, tightening supply, demand conditions could boost the prospects of silver. The world’s most reflective metal could regain the more traditional gold to silver ratio, perhaps returning to the natural mineral ratio of 10 : 1, sending the silver price north of triple digits. In addition, escalating investment demand from China and India as well as global central bank purchases remains a positive. Their tendency to hold the metals intergenerationally, suggests supply will continue to dwindle, amid increasing demand. Of central importance to every investor, gold and silver offer an exceptional and free insurance policy, without monthly premiums or an expiration date.
Brexit, but Buy Gold
by James Rickards
Daily Reckoning
This Thursday — just 48 hours from now — the United Kingdom may soon make the greatest monetary blunder since 1925. That’s when Churchill returned sterling to gold at £4.25 per ounce, the pre-war price. Keynes warned Churchill a much higher price was needed to avoid deflation. Churchill ignored Keynes advice, and plunged the U.K. into depression.
The new blunder is not about the price of gold; it’s about the quantity. If the U.K. leaves the EU, it will turn its back on any share in the Eurozone’s 10,788 tonne gold hoard; the combined total of all Eurozone members plus the ECB.
The U.K. has 310 tonnes of gold, giving it a miniscule 0.5% gold-to-GDP ratio. This compares with gold-to-GDP ratios of 4.8% for Russia, 2.8% for the Eurozone, 2% for the U.S., and 1.6% for China. (The Chinese ratio uses reliable estimates of 4,000 tonnes of gold. A lower amount of 1,788 tonnes is officially reported by China to mask the extent of China’s gold purchase program).
Last Four Brexit Polls Split: Turnout of Age 18-35 Likely the Key
by Mike ‘Mish’ Shedlock
Mish Talk
Four new Brexit polls came out today.
- An online poll by Opinium was slightly in favor of Leave.
- An online poll by TNS was slightly in favor of Leave.
- An online poll by YouGov was slightly in favor of Remain.
- A phone poll by ComRes shows a 6 point lead for Remain.
If you give the nod to phone polls, Remain is in the lead. Nonetheless, let’s take a deeper look.
Brexit Polls Final Tally
Wall Street’s ‘Fear Gauge’ Rears up as Brexit Vote Approaches
VIX touches 20, implying that investors are starting to get spooked
by Mark DeCambre
Market Watch
The market’s so-called fear index has gathered momentum ahead of a referendum that could help determine the U.K.’s continued membership in the European Union.
The vote scheduled for Thursday has become one of the financial world’s sharpest points of anxiety. The main concern is that if Britons opt to exit the EU, markets world-wide will be roiled. An online survey by Opinium on Wednesday implied that the odds of a “Brexit” are the about the statistical equivalent of a coin toss.
That uncertainty has put pressure on the S&P 500 index SPX, -0.17% and the Dow Jones Industrial Average DJIA, -0.27% which relinquished morning gains on Wednesday to close near session lows. As a result, the CBOE Volatility Index VIX, +14.56% or VIX, which tracks S&P 500 options prices, climbed above 21. That’s up more than 9% on the day.
The British Referendum and the Long Arm of the Lawless
by Danielle DiMartino Booth
David Stockman’s Contra Corner
“Kings have long arms, many ears, and many eyes.” So read an English proverb dated back to the year of our Lord 1539. And thus was born an idiom that today translates to the very familiar Long Arm of the Law. It stands to reason that such a warning was born of feudal times when omnipotent and seemingly omnipresent monarchs personified the law, possessed of reach, eyes and ears against any and all nefarious souls who dare defy and attempt an escape into thick, ancient forests under dark cover of night.
Today we use the very descriptive and accurate idiom with little thought as to how it came to be a part of our modern language. The credit should go to Charles Dickens for bringing that borrowed but altered expression forward in time.
Market Talk – June 22, 2016
by Martin Armstrong
Armstrong Economics
A mixed session in Asia as the Nikkei could not escape negative territory, whilst Shanghai and the Hang Seng both provided positive returns. The Nikkei lost 0.65% while Shanghai and HSI gained 0.95% and 0.6% respectively. The JPY flirted with a 105 handle but was rejected and that rejection has gathered pace as European equities stabled after a mid-morning wobble but more importantly, ahead of the BREXIT vote tomorrow.
As we approach this day of destiny many asking what will the BOE do, if anything? You can expect moves in accordance with varying rumours, views and headlines in all sterling related markets. The BoE is unlikely to address any large currency move, on the day but will be more concerned about bank liquidity and providing its reassurance, if required.
Panic! Brits Feverishly Buy Foreign Currency on Eve of Brexit Vote: “Pound Would Decline Precipitously”
by Mac Slavo
SHTF Plan
Fear and mass panic are known to among the most dangerous threats we face…
And absolute chaos could ensue for currency markets, if the warnings hold true.
Tomorrow is the much feared Brexit vote, and on the eve of such a momentous referendum that could lead to the dissolution of the European Union, there is a great deal of worry as investors feverishly exchanged ‘safe’ currency in case of a destabilization of the British pound or the Euro.
As RT reports:
Why The Just Released YouGov Poll May Have Sealed The Outcome Of The UK Referendum
from Zero Hedge
Moments ago, when the latest YouGov poll came out and showed a modest lead of 51% to 49% for Remain (up from 44% for Leave and 42% for Remain as of June 19), showing a steep drop in the momentum of the Leave campaign…
[…] and in the process pushing the FT poll tracker in “Remain’s” favor at 47% to 45%, up from 44% to 45%…
[…] … it may have effectively sealed the fate of the Brexit referendum.
Here is the reason.
As Reuters reports, like in 2014 and unlike in national elections, British broadcasters on Thursday will not conduct exit polls – in which people are asked as they leave polling stations how they voted – once polling closes at 10pm local time because the margin of error for an event which has little precedent is too large.
Southern California Time Bomb: the Ground Surrounding the San Andreas Fault is ‘Rising and Sinking’
by Michael Snyder
The Economic Collapse Blog
If you reside on the west coast, you are living on borrowed time. As you will see below, stress has been building up along the San Andreas fault for more than a century, and scientists tell us that southern California is way overdue for a major earthquake. When that stress is finally released, the U.S. Geological Survey says that we could be looking at hundreds of billions of dollars in damage. If you follow my work regularly, then you already know that there has been unusual shaking all along the “Ring of Fire” so far in 2016. But thankfully the west coast of the United States has been spared from a major disaster up to this point. Unfortunately, scientists assure us that it is only a matter of time before one strikes, and that is why it is so alarming that the ground surrounding the San Andreas fault has been “rising and sinking”. The following comes from the Los Angeles Times…
Brexit and Silver
by Roland Watson
Silver Seek
If it escaped your notice, there is the small matter of British citizens voting on whether to leave or remain within the European Union on the 23rd June. Being a British citizen (or is that a British subject), I have a vote to cast which requires some thought. However, one other thought is the effect a “Brexit” would have on silver as measured in Pounds Sterling.
Now, Britain does have its fair share of silver investors, who will see silver as an investment opportunity, or perhaps a bulwark against a currency that is subject to the same predations as any other fiat currency. The silver story in British Pounds is pretty much the same as the one for US Dollars as the monthly chart (courtesy of netdania.com) shows.
Will Metaphysics Trump Algorithms? Stay Tuned.
by Rick Ackerman
RickAckerman.com
We’ll give Brexit nuttiness wide berth, watching from the sidelines and cheering on our personal favorites as the week draws to a close.
If you’re tempted to swim with the sharks despite the risks, try using the trading levels detailed in the chart that accompanies Thursday’s E-Mini S&P tout.
It has always been my contention that Hidden Pivot supports and resistances precisely control price action, not the psychotics and algo-obsessed schizoids who unwittingly fill the in-between spaces on charts. We shall see.