by Karl Denninger
Market-Ticker.org
A John McCain fundraiser was arrested Tuesday on suspicion of drug charges after Maricopa County sheriff’s deputies found an active meth lab and other illicit drugs while conducting a search warrant at her north-central Phoenix home.
Things that make you just crack up on a Wednesday night…
Oh wait… crack up eh?
by Mike ‘Mish’ Shedlock
Mish Talk
The Fed also dropped concerns on global economic risks and gave no indication it might waver on last month’s projection it would hike twice this year.
The market expects no more than one hike, and not until November at the earliest.
Fed Tracker Changes
The Wall Street Journal’s Fed Statement Tracker highlights these changes.
by Rick Ackerman
RickAckerman.com
The Wall Street Journal put out a full-court press of inflation blather yesterday, shilling the Fed and a mainstream consensus that higher prices for everything loom in our future. Here’s one of the headlines from Wednesday’s edition: ‘Yes, Central Banks Can Create Inflation. Just Ask Argentina”. And here’s the headline I would offer in response: ‘No, Central Banks Cannot Create Inflation. Just Ask Europe and Japan’. The other headline, atop a column by one Ken Brown, read as follows: ‘No One Believes It, but Inflation Is a Pretty Good Bet’. In response, I offer the chart above. If inflation were coming, the long-term bond would reflect it with a bearish chart (bond yields correlate inversely with price). Does the chart look bearish? Not hardly. Even to someone who knows nothing about charts, T-bond futures look like they are headed to the moon.
by Zach Scheidt
Daily Reckoning
Yesterday, I sounded so confident when telling you about contract income opportunities, or what I also call “Chicago Income Rights.”
But when I originally got off the plane at Chicago’s Midway airport in late March, I didn’t know what to expect…
I was on the hunt for one of the largest income opportunities I had ever heard of. If the stories I had read were true, “Chicago Income Rights” had led some investors to lock in legally guaranteed profits totaling more than 10 times their initial investment.
Would I figure out how? Or would I go home empty-handed and discouraged?
How shortsighted policies are creating a long-term crisis
by Adam Taggart
Chris Martenson’s Peak Prosperity
Students of Austrian business cycle theory are familiar with the term malinvestment. A malinvestment is any poor use of resources or capital, commonly made in response to bad policy (usually artificially low interest rates and/or unsustainable increases in the monetary supply). The dot-com bubble that popped in 2001? The housing bubble that similarly burst in 2008? Those were classic examples of malinvestment.
With this article, I’d like to introduce a related term: malincentive. While not part of the official economic lexicon, I consider a ‘malincentive’ a useful word to describe any promise of short-term gain whose long-term costs outweigh any immediate benefits enjoyed. The temptation to urinate in one’s pants on a cold winter day to get warm is a (perhaps unnecessarily) graphic example of malincentive. Yes, a momentary relief from the cold can be achieved; but moments later, you’ll have a much larger problem than you did at the outset.
by Charles Hugh Smith
Of Two Minds
The endless bleating of well-paid pundits in the corporate media about “reform” is just more circus.
It’s difficult for well-meaning pundits to abandon the fantasy that meaningful reform is possible. Indeed, a critical function of the punditry and corporate media is to foster the fantasy that the status quo could be reformed if only we all got together and blah blah blah.
As I explain in my new book Why Our Status Quo Failed and Is Beyond Reform, real structural reform would trigger the collapse of the status quo. (As a reminder, the status quo benefits the few at the expense of the many.)
But there’s another dynamic that makes reform impossible. I’ve prepared a chart to explain this dynamic:
by Bob Moriarty
The Gold Report
Of all the people in the tech world, Steve Jobs perhaps understood the potential of the Internet better than any of his peers. Bob Moriarty of 321Gold discusses how Jobs’ insight can provide lessons on gold manipulation and what moves markets.
Many years ago Steve Jobs said that the most wonderful thing about the Internet was that it gives everyone a voice. He also stated that the worst thing about the Internet is that it gives everyone a voice.
We have more access to information at our fingertips than any society has had in history. But as a guy running a financial information website for the last 15 years, I have found that while we have access to far more information, much of it is little more than noise. My experience is that all unsuccessful investors focus on noise and ignore signal. . .to their financial peril.
by Michael Snyder
The Economic Collapse Blog
A shocking new survey has found that support for capitalism is dying in America. In fact, more than half of all adults in the United States under the age of 30 say that they do not support capitalism at this point. You might be tempted to dismiss them as “foolish young people”, but the truth is that they are the future of America. As older generations die off, they will eventually become the leaders of this country. And of course our nation has not resembled anything close to a capitalist society for quite some time now. In a recent article, I listed 97 different taxes that Americans pay each year, and some Americans actually end up returning more than half of what they earn to the government by the time it is all said and done. So at best it could be said that we are running some sort of hybrid system that isn’t as far down the road toward full-blown socialism as most European nations are. But without a doubt we are moving in that direction, and our young people are going to be cheering every step of the way.
from Zero Hedge
If there was a sign that nothing else matters but central bank largess, this was it. The moment The Bank of Japan statement hit and proclaims “unchanged” a vacuum hit USDJPY and Japanese stocks. Reflecting that Japan’s economy has “continued a moderate recovery trend” which is utter crap given the quintuple-dip recession, Kuroda and his cronies said they will “add easing if necessary” and apparently that is not now. Not so much as a higher ETF purchase or moar NIRP.. and the aftermath is carnage – NKY -1000 points and USDJPY crashed to a 108 handle!!
Central bank’s inaction comes amid growing economic woes
by Takashi Nakamichi and Megumi Fujikawa
Market Watch
TOKYO — The Bank of Japan left its main policy unchanged Thursday, brushing aside calls for more stimulus from the markets, but it introduced a measure offering aid to areas devastated by recent earthquakes.
The central bank kept its asset purchase target at 80 trillion yen ($718 billion) a year, a measure aimed at putting more money into circulation to stimulate growth and inflation. The BOJ’s policy board voted 8-1 in favor of maintaining the target.
The BOJ also left unchanged a deposit rate of minus 0.1% — charged on some deposits held by commercial banks — through a 7-2 vote. The subzero rates went into effect in February as part of stepped-up efforts by Tokyo to spur economic activity and price growth by driving down various borrowing costs. The dissenters on the vote called for the bank to return the rate to the previous plus 0.1%.
from King World News
On the heels of today’s Fed’s statement, gold and silver continued to hold on to recent gains. KWN is publishing more wisdom from Jesse Livermore and it was the email below that was the trigger.
More incredible wisdom from Jesse Livermore below, but first the email…
“Fleck- I think you are right. Everyone is calling to buy the miners on a pullback. I just read one call on PAAS specifically for a major buy point below $10 which I guess could happen but with so many thinking the same thing doubtful it will. I thought the recent 7% pullback was a good buy point but who knows. I just know in a couple years it will be much higher. Never thought sitting in a position could be this difficult. That 5 year drubbing in the miners has really brainwashed me to want to sell.
by Nick Barisheff
Gold Seek
For thousands of years, gold has been used as money, a store of wealth, fought over and sought after. Over the last 45 years, Western populations have had a mixed impression of gold. A minority of the population understands that gold is a monetary asset that should be held as wealth insurance. A larger percentage of the population is confused about gold because of mainstream sources of information. Many people consider gold a risky investment when in fact gold bullion is not an investment at all, but rather money itself. Just like any fiat currency held in a vault, gold does not pay interest or dividends. Investors often look upon gold mining companies in the same light as physical gold bullion. Gold mining shares are investments, and can be good tactical investments from time to time. However, the characteristics of gold bullion and gold miners are very different. In some ways, those differences are similar to the difference between an insurance policy and shares of an insurance company.
by Luzi-Ann Javier
Bloomberg.com
More good news for silver bulls: there’s supply trouble brewing.
Output from mines will fall for the first time since 2011, while demand for the metal in uses including industrial products and jewelry is heading for a fourth straight gain, supporting prices, according to CPM Group. The market is entering what is “likely to be a pivotal year,” the New York-based researcher said in its “Silver Yearbook 2016.”
[…] Production is declining just as signs of stabilization in China’s economy fuel optimism for stronger global demand, helping drive a 24 percent rally in silver this year through Monday that topped gold’s performance. Both metals are benefiting from increased expectations that the Federal Reserve will be slow to raise interest rates this year amid concerns that slowing global growth will spill over into the U.S. That’s boosted demand for gold and silver as stores of value, after prices for each slid for three straight years through 2015.
by Rajveer Rawlin
Market Oracle
Definition of a Recession:
The textbook definition of a recession is two quarters of negative GDP growth. Some examples of recessions include the great depression of the 1930’s, the dotcom crash of 2000 and the great recession of 2008.
Causes of a Recession:
Recessions are caused by several factors. These include:
– Hyper Inflation
– Deflation
– Prolonged Fall in Exchange Rates
– Credit Crunches
– Collapsing Consumer Confidence
– Collapsing Asset Prices
– Collapsing Global Trade
– Bust following Excessive Speculation – e.g., Property Market in Japan -1989
by Felicity Arbuthnot
Global Research
“The welfare of the people in particular has always been the alibi of tyrants.” (Albert Camus 1913-1960.)
On 1st May 2003, George W. Bush stood in a dinky little flying suit on the deck of the USS Abraham Lincoln and in a super stage managed appearance told the lie of the century: “Major combat operations in Iraq have ended. In the Battle of Iraq, the United States and our allies have prevailed. And now our coalition is engaged in securing and reconstructing that country.” (1)
The illegal occupation and decimation of Iraq continued until December 2011. In June 2014 they returned to bomb again in the guise of combating ISIS. As the thirteenth anniversary of Bush’s ridiculous appearance with a vast “Mission Accomplished” banner behind him, Iraq is largely in ruins, Iraqis have fled the murderous “liberation” and it’s aftermath in millions and there are over three million internally displaced.
by Michael Snyder
End of the American Dream
The UN Security Council has unanimously rejected Israel’s claim to sovereignty over the Golan Heights, and this is likely to cause tensions in the Middle East to rise even higher. On Sunday, Israeli Prime Minister Benjamin Netanyahu boldly declared “that the Golan Heights will remain under Israel’s sovereignty permanently.” After close to 50 years of control over the Golan Heights, this should not have been much of a shock. But the Arab world immediately went into an uproar, and the UN Security Council has taken action. In a unanimous decision, the UN Security Council has announced that Israel’s claims to the Golan Heights are “null and void and without international legal effect.”
by Bill Bonner
Daily Reckoning
GUALFIN, Argentina – No major meltdown in the stock market yesterday. Au contraire, stock prices generally moved up.
But our focus this week is on the real, the concrete – things that matter. Like cold feet. We have only a few days more at the ranch; we have to pay attention to them.
And there is so much to pay attention to!
Everything Matters
“I read that kids today spend nearly eight hours a day on their cellphones and computers,” said Elizabeth yesterday. “I wonder what that does to their minds.”
by Karl Denninger
Market-Ticker.org
Absolutely. I’ve never claimed to be a physician, or to have a degree in anything — nutrition, medicine or otherwise.
Nonetheless, I reproduce the following verbatim received this evening:
I previously wrote after 2 weeks following your eating lifestyle article on Feb 13 to share my astonishing results in such a short time. 62, sedentary, yada yada. Health marginally bad and getting worse.
Now at 9 weeks. Went for checkup this week. A1c down a full point; trigylcerides down 25 points, have lost 17 pounds (and never hungry), good cholesterol up 20%, bad down 20%, just like you said would happen. Aches and pains gone—it wasn’t old age, rather my ****ty lifestyle!
by Paul-Martin Foss
Mises.org
As expected, the Federal Open Market Committee decided today to maintain its target federal funds rate at between 0.25 and 0.50 percent. Another rate hike is expected at the earliest at the June FOMC meeting, with the August meeting being a more likely candidate for a rate hike. Language in the FOMC statement was largely unchanged, with the exception of noting that economic growth has slowed, the labor market has improved, and household spending has moderated. The FOMC also removed language referring to inflation picking up, which would lead us to believe that they still think the rate of increase in inflation is, in their eyes, sub-optimal or slowing. The FOMC also removed language about global economic developments posing risks, instead stating that the Committee would continue to closely monitor global economic and financial developments. Kansas City Fed President Esther George dissented from the FOMC’s decision yet again, favoring an increase in the target federal funds rate to 0.50 to 0.75 percent. We wouldn’t expect much market reaction to today’s announcement, as it was already expected and should have been priced in. Expect more reaction to the Bank of Japan’s monetary policy announcement tomorrow.
FOMC results: nothing of importance/Big news is sthat the OI on silver continues to set new records: today 206,748 contracts or 1.03 billion oz
by Harvey Organ
Harvey Organ’s Blog
[…] Today we got a little surprise in that gold rebounded from its lows to close at $1249.20 at comex closing time and silver was up 18 cents at $17.29 The comex options expiry had little effect on both metals. In silver, we now have an all time high in silver OI at 206,748 which represents 1.03 billion oz. Generally when you get a record high OI, you also have high prices for your commodity.
Please remember that even though comex options have expired we still have London’s LBMA and OTC to contend with. They expire on Friday morning.
Let us have a look at the data for today.
from Financial Survival Network
Where’s It Going Wednesdays with Andrew Hoffman:
April 27th (today) – a day of Central bank infamy?
The Myth of “QE to Infinity”
The Ultimate Chinese Finger Trap
Silver 2016 – the Cartel’s last stand
China vs. the Gold Cartel – No Contest!
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by Simon Black
Sovereign Man
After a mind-numbing, year-long process, one of the longest business deals I’ve ever been involved with in my entire life finally closed a few days ago.
I couldn’t be more excited.
Through Sovereign Man’s parent company, we purchased a wonderful, Australia-based business that’s been around for over 20 years and is a pretty iconic brand in the country.
Plus, it’s had a long history of profitability and zero debt, so it’s a safe, stable source of cashflow.