Figured it Out - Bail-Ins are for Amateurs

74
Thu, Aug 7, 2014 - 12:29am

Fiat paper schemes always end with the currency devaluing to zero, worthless. Along the way, though, through the years, history teaches us that those in power, that is, those issuing the worthless colored paper, always resort to trickery, deceit, then war all in an effort to remain in power.

Recently, we have seen, as was done in Cyprus, and has been commented upon by many pundits, and can expect the banking institutions that are too big to fail to resort to outright theft of depositor funds to remain solvent. Remember, to a bank, a deposit is a liability, which must be repaid.

We have also seen countless schemes whereby the big institutions holding onto deposits, or investors' cash, have simply rehypothecated, or pledged the same funds time and time again as collateral for loans, which are then used to speculate in the markets or with exotic derivatives. Anyone need a refresher course need only google MF Global and Corzine for an in-depth lesson.

Of late, there has been open outcry, that it is impossible to earn large, crazy wealthy sums simply from creating a business and selling products. No, something more is required to get one's hands upon generational wealth. That "something more" requires one to embrace the paper fiat scheme, and immerse oneself.

This concept of wealth creation being possible only from immersion into the paper fiat scheme, whether through investment banking, stock trading, hedge funds, buying and selling paper assets, speculating on commodities, what not, has attracted the very best and brightest. There is no comparable upside income potential, aside from crony capitalism and generational wealth that can be earned from political favors. However, that career path and trajectory are beset by extreme odds against success.

As a result of this obvious path to extreme wealth creation, naturally, those seeking such fabulous riches are irresistibly drawn to the financial sector. In this sector, all that matters is "scoreboard." It is not how hard one tries, or that one put in a good effort, or that one acted with high moral character, or honor, or any of the imbedded, traditional values that made the USA great long ago. Instead, the extreme short term time frame, 3 months, and an objective financial bottom line are the measuring sticks of success or failure, where coming in soundly within the bell curve is tantamount to an admission of mediocrity and necessarily, failure, because there is no incentive for any market participant that rewards mediocrity. None. In the end, it is all about the bottom line.

In this paradigm, then, naturally, rewards are doled out to those that succeed, that is, who do better than their peers, some of the best and brightest that have ever lived. Who among such a rarified breed, is going to be content as a middle-of-the-packer, when to enter the industry one must abandon any pretense of morality? Easy! NO ONE!

Based on this reasoning, then, those who do not share the financial industry type value system, cannot fathom the most basic understanding of what is driving the system, nor what to look for in predicting outcomes.

Like Mr. TF, who correctly, and for years, has predicted short and long term physical metals prices, based on his understanding that the commodity spaces are manipulated, once one embraces that concept, radical as it seems, and as unbelievable as it is, then making sense on the charts is, as TF so aptly notes, not too complicated at all.

In that spirit, I offer up a thought experiment that lead me to a conclusion that I believe explains a plausible end-game, slow burn, that is not at all a collapse, but is instead an orchestrated, but not controlled, descent of fiat towards its ultimate value of zero. Of course, this entails substitute currencies, under central control, likely backed by something of value. What that is is uncertain for now, but will reveal itself as time passes.

For now, let us turn to the facts upon which I base this analysis and conclusion.

What started me down this path is the seeming impossibility that regular folks in the USA will tolerate any such bail-in nonsense. I was bolstered in this thinking the other day at a local gun show I attended. I went to get a feel for the mood, and see whether the market had corrected back to normal following the Sandy Hook story. I believe strongly that it was staged, designed to usher in massive gun control, but failed as the powers that be realized that the red states are just not going to part with their guns. The puppet masters misread their abilities, and their puppet politicians could not complete their masters' tasks. Gun control failed for now, but as normal, will creep up time after time, as marginally, regular people lose interest, and the slick politicians erode rights at the margin. As I type this, California is looking to enact laws that allow family members to rat out a loved one, and enable authorities to seize firearms. No due process, screw the Second Amendment. This marginal erosion of gun possession rights is coming to every single place, eventually. Count on it.

Anyhow, back to the story. So, I am at the gun show, and I see table after table of guns, ammo, as far as the eye can see. Production has never abated, and people are buying hand over fist. New market suppliers are springing up in the face of increased demand. Supply and demand forces are working as should be, unlike in the physical precious metal space . . . But, I digress.

As I took this scene in, I became instantly struck by the likelihood of anyone in that building accepting some government decree taking any portion of anyone's hard-earned money, stored at a local bank. Not a chance in hell that the regular folks just meekly take losses like that. No way.

The regular folks are SEETHING. Washington politicians do not see it, nor do they want to see it. When Obummer comes to Los Angeles, traffic is snarled all day. Folks are PISSED OFF. It reminds me of the simmering racial tensions following the Rodney King video beating. It was all there, right out in the open, but most people did not want to talk about it. In mixed company, no one dared mention it. I was lucky, I had friends from all walks of life. I heard a total disconnect between my reality, and the reality of those less fortunate. We all remember the riots in Los Angeles in 1992. Koreans, armed, on rooftops, gangs of black youths rampaging, National Guard, fires, riots, lockdowns. OJ Simpson ripped open the wounds for more pain. Nothing was solved. Look what happened to OJ after a two-bit burglary in Las Vegas? Think the public is dumb, or disengaged? Not a chance. They are just uninformed, because their sources of information have been feeding them a massive daily infusion of brainwashing. Call it MOPE, or spin, or misdirection, whatever, the fact is that the truth has been withheld from the masses, deliberately.

As the truth leaks out, gradually, as it always does, people are slowly, ever so slowly, becoming aware. The gun crowd gets it, for sure, hence the effort to secure firearms and ammunition. Those red state voters understand that their colorful scraps of banker paper do not by as many rounds of ammo as they used to. The solution for them is not to complain about auditing the FED, or of returning to sound money, away from fiat. No, not at all. Heck, most of them know Fiat as a break-down prone Italian sportscar. Audit the FED? FED who? What's an audit? Like the IRS, and produce receipts? What?

Anyhow, the simple fact is that people know to spend their banker paper on durable goods. They got taken to the cleaners on the housing bust, so many people are wary, and renting. People are not foolishly taking on debt to buy the latest consumer good, either. Most people who need a flat screen TV, have one. New car? Maybe, but more likely is they are making do with less, repairing their things that break rather then replacing them with new. So, the people are aware and reacting, just not in ways politicians want them to react.

Which leads to the next huge understanding I reached. It dawned on me that there really are very few retirement options most people have. The wealthy do not worry, as they are invested in paper assets. They, by and large, see nothing, because they have reached success, and will do and say what it takes to keep the status quo operating, as they have benefited from it. They do not want change. The poor have no delusions of "retirement." Every day is a challenge. They are already getting government benefits, and they too want the system to remain intact. These are the great masses that make up the Free Shit Army. These are the voters coddled and coveted by those in elected office. These lower information voters are not at all going to do or say anything that upsets their free government transfer payments. If anything, they will complain and demand more, under various MOPE scenarios based on division and class envy.

The middle classe, though, is wholly dependent upon their pensions, whether from their 401k's, or their union pensions, or their govt pensions, what have you. The days of buying and holding, saving, and living on interest, are long gone, and are never coming back anytime soon. We all know this, as do all the overlords and secret back room meeting bosses. They know full well that the system is collapsing, in real time, and are desperately trying to keep it together.

They have seen fiat paper schemes implode, and are anxiously attempting to find a solution to the existing mess. For this, there is no doubt.

Only recently, though, did I see something that caused me to understand just HOW those banksters are going to pull of the greatest scam ever.

Remember, they cannot simply bail-in the Americans, because there will be massive uprisings, and there will actually be consequences. There are just too many guns, and too many pissed off, seething angry people who will, at the first chance, become active, violent, and will enact real reforms, with death and suffering as a result for many of the wealthy. For this, I have no doubt at all. There are not enough police personnel to quell the uprisings, and further, many of the local police forces will be taking care of their own families. I know this personally, on a big scale, and I also know that the powers that be know this as well. There is no delusion amongst the central planners that massive civil unrest will spell doom for those in charge.

As a result of this, and based on what transpired and is transpiring in Argentina, over the default on bonds, and the financial engineering that underlies that whole mess, I believe with 100 confidence that the end game scenario is going to play out in this fashion, as follows:

(1) Pension funds will be financially engineered such that the workers that have contributed their wages to the pension fund, will be given massive haircuts, on order of at least 50% or greater, both in the holdings of the pension fund, as well as upon payout based on the diminished holdings;

(2) The funds stolen by the pension fund managers, will be used to capitalize the TBTF institutions, keeping the system afloat;

(3) Because the pension funds will be, essentially raided, the workers will demand safeguards in the future, which the politicians will be only too happy to grant, thus requiring pensions to no longer invest in "risky" things like the stock market, or CDO's or any of the wall street financial schemes, but instead to invest in "safe" long term government bonds;

(4) After most of the pensions are looted, and the balance of funds are now invested in government bonds, there will be a currency reset, and the value of the pension funds that were converted to govt bonds will be further eroded, and of course,

(5) None of the pension funds will have invested in hard physical precious metals, which will explode in value to the upside.

(6) Anyone riding the bull this long will have amassed generational wealth, provided their family and friends still even talk to them.

If anyone doubts the premise of the very first point above, that is, that pension funds will be stolen by way of sophisticated financial engineering, then to those people, I ask them to please read this excellent piece over at nakedcapitalism: https://www.nakedcapitalism.com/2014/08/much-short-position-paul-singer-...

The bottom line from the nakedcapitalism piece is that the workers, who contributed to their pension fund, had their funds stolen from them through outright theft by a corrupt fund manager, who also invested the funds in a high yield scheme whereby the pension fund was left holding the bag on worthless CDO's.

See, the crooks at the top are not going to just plainly "take" the money. No. They will use arcane concepts, driven by classic human emotion, like fear and greed (hat tip, Argentus for his great post on this recently), and will engineer turnover of the fund investments such that the poor, dumb workers end up taking the losses. The gains of course, all went to the corrupt, TBTF banks, which silently "hypothecated" the funds in the normal course of business and "thems is the breaks!"

This scenario will take place over years, not days or months. The system will hold together until it doesn't. But so long as it does, it will be a slow, gradual descent, marked by the occasional failed bank, headline, and then back to bread and circuses.

Remember the Greek bailouts? What happened to that? See what I mean?

Please, whatever you choose, prepare accordingly.

About the Author

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Human Mushroom
Aug 8, 2014 - 1:23am

Any Suggestion for Gelling Agent for Colloidal Silver?

I have applications for colloidal silver in a gel form since liquid is just so messy and wet, so I buy it in gel form. Of course buying any colloidal silver is expensive. I always make my own colloidal silver, so I was wondering if any one knows of a food grade gelling agent to use to turn my liquid into a gel. It must be cheaper than buying tubes of colloidal silver gel. I tried looking online for food grade gelling agents, but I have to admit I'm totally ignorant on what to actually look for, or where to get it.

DeaconBenjamin
Aug 7, 2014 - 11:50pm

Japanese regulators highlight interest rate risk

Japanese financial authorities are joining forces to scrutinise for the first time banks’ exposure to a potential spike in interest rates, with a focus on the risks to regional lenders when the central bank eventually ends its massive easing.

While the risks look small now with Japan’s economy recovering and interest rates extremely low, the nation’s 105 regional banks represent the weak link in the financial system. With local economies depopulating in this fast-ageing society, loan demand tepid and scant resources to seek profits overseas, regional lenders have little alternative for their huge deposits but to hold Japanese government bonds.

The Financial Services Agency and the Bank of Japan are scrutinising the smaller lenders’ interest-rate risk as they jointly step up their “macroprudential” oversight - looking to identify and minimise risks to the financial system amid broad shifts in the economy, people involved in the process say.

“At present, interest rates are very low and stable, but we don’t know when or how the financial environment will change,” the FSA’s new commissioner, Kiyoshi Hosomizo, told regional bank heads in a private meeting last month, according to a person who attended the meeting.

Regional banks, which sit below the five major banks in Japan’s financial pyramid, have total deposits and loans roughly equal to the biggest lenders but are largely tied to shrinking local economies outside the vibrant big cities. They vary greatly, with the market value of the listed banks ranging from over $7 billion for the Bank of Yokohama Ltd just outside Tokyo, to barely $50 million for Howa Bank Ltd in the western city of Oita.

The FSA, the financial industry regulator, has been prodding regional lenders to consider mergers and acquisitions for greater efficiency to cope with the bleak economic outlook. So far, the local bank chiefs have shown no willingness to give up their local fiefdoms and consolidate.

While BOJ Governor Haruhiko Kuroda says it is too early to discuss winding down the central bank’s 16-month-old “quantitative and qualitative easing”, the recent attention on interest-rate risk shows that in practical terms Japan’s financial authorities have begun eyeing the exit.

Kuroda’s central bank has crushed Japan’s market interest rates - the 10-year JGB yields barely 0.5 percent - by purchasing 70 percent of the government’s debt issuance in an unprecedented monetary easing. Policymakers worry that if growth picks up or investors think the central bank is moving toward tapering its purchases, interest rates could jump and the value of the JGBs held by the country’s regional lenders would get hit in particular.

Since the global financial crisis, Japan’s major banks have greatly reduced their interest-rate risk by shortening the duration of the debt they hold - making them less vulnerable to rising long-term yields - and selling down their government bond holdings, the FSA said last month in its Financial Monitoring Report. Regional banks, by contrast, have offset their JGB decreases by purchasing corporate debt, the report says.

https://www.japantoday.com/category/business/view/japanese-regulators-hi...

DeaconBenjamin
Aug 7, 2014 - 11:35pm
Mr. Fix
Aug 7, 2014 - 11:30pm

This is really worth a listen:

ROB KIRBY ON EBOLA IMPORTATION & OPEN BORDERS: THIS IS…TREASON!

AUGUST 7, 2014 BY THE DOC 2 COMMENTS

These are people that are deeply, deeply involved in deep TREASON,” explains friend and Patriot Rob Kirby from Kirby Analytics. Rob joins the SGTReport to discuss Ebola, precious metals manipulation and the US open border with Mexico – and he doesn’t mince words:

We are under the control of Globalists and Globalists have an agenda. They want less of us on the planet. The Globalists have written white papers explaining explicitly their contempt for humanity. They want less of us on the planet. They want the planet depopulated. These Globalists have control of the financial apparatus, the media apparatus, the geopolitical apparatus… It is Globalism that we need to fear most of all. Their agendas are one world government, one world currency and one world religion, namely the worship of State. And this is the trajectory we’re on.”

Rob Kirby’s full MUST LISTEN interview with SGTReport on PM manipulation and US authorities IMPORTING deadly Ebola patients is below:

[Read more...]

Mr. Fix
Aug 7, 2014 - 11:23pm

@ Boswell

That's how I do it. Works great!

(I use 2 Maples, & 9 volts)

Boswell
Aug 7, 2014 - 11:00pm

"get rid of fiat"

Ain't that the truth! I just made a batch and am all "hyped up" ;-)

I cut a Maple ($23.83) in half and made a gallon, good for another 800.

Get the Meso for special applications, learn to make it for later...

My "setup" at the Boswell Labs...

Mr. Fix
Aug 7, 2014 - 10:49pm

What ancientmoney just said goes for me too.

PS.

Hi DayStar,

I thought that was my spot!

DayStar
Aug 7, 2014 - 10:46pm

Harvey's Up! (TFMR)

Harvey's Up! https://www.tfmetalsreport.com/comment/621467#comment-621467

  • Harvey: Today, our bankers were determined as ever to knock gold and silver down. Gold was brought down to around $1302.00 and silver to $19.85 right after the first London fix. However tensions with respect to the Ukraine/ Russia conflict intensified throughout the day culminating in the NATO commander, Rasmussen, giving Russia an ultimatum to remove its forces from the border...or else... Russia also announced sanctions against the west which will really hurt them i.e. a ban on all food exports. Greece and Austria are thinking of abandoning the "western" coalition as this ban would hurt as their exports to Russia are rather large. In other news, in Iraq, ISIS captured the largest dam in the country, the Mosul Dam from the Kurds. The Kurds retreated inland and some of the Christian town folk retreated to the mountain tops. The USA is thinking to send food drops to them. The Ebola manifestation is causing alarm bells all over the world where the CDC just called the alert a Category 1 (the highest). The virus is now in 4 countries. The virus is airborne and there is no cure. If a person has been hit with it, the only way he can survive is to be kept alive for 5 to 6 weeks, allowing for one's own antibodies to be produced to kill the virus.
  • Tess Ingram (Australian Financial Review): If there is one key message from this week's presentations at the gold-dominated Diggers and Dealers conference, it is that increasing exploration is essential to the sustainability of the gold sector. Gold exploration expenditure dropped off 30 per cent or $34.8 million during the March quarter, in line with a 25.5 per cent fall in total exploration expenditure. Evolution Mining chairman Jake Klein told the conference that the last 12 to 18 months have been the toughest he has experienced during his more than 20 years in the industry. "Gold discoveries have become increasingly rare and in fact over the last couple of years increasingly bleak," Mr Klein said. "One thing that is definitely insane is deleting exploration from your budget in order to save cash because you are fundamentally destroying your business if you are not investing in exploration." Evolution is investing $20 million a year for exploration, with a current focus on exploration at three of its projects and a new joint venture. Exploration plans were detailed by the majority of the gold companies presenting at Diggers, with Northern Star Resources' $50 million exploration budget for the financial year one of the most substantial discovery budgets for the local sector. Northern Star managing director Bill Beament said the company looks to grow its resource base further through the extensive drilling program. "There is a large amount of high-grade highly profitable gold to be found in and around our projects," Mr Beament told the conference.
  • Indian Express, New Delhi: Gold delivery on the Multi-Commodity Exchange (MCX) platform against the August contract hit the highest since April last year, in a welcome change for the country's largest commodity bourse, which was hit by a transaction tax on non-farm futures and a settlement crisis at a group firm. MCX witnessed the delivery of 1,159 kg of gold against the August contract, the highest since that of 1,388 kg in April 2013 and sharply higher than that of just 4 kg in February this year. Importantly, this was the first time that delivery has crossed the 1,000-kg level after a 0.01 percent transaction tax was imposed by the government on non-farm futures in July last year. With the imposition of the tax on the seller, the costs of trading on the MCX platform have more than tripled from R1.60 on a transaction value of R100,000 in June 2013. "Such high delivery bears testimony to high hedging interests and hedgers' faith in the MCX gold contract," said PK Singhal, executive vice-president of MCX.
  • Chris Powell: Now that the stock market is faltering and there's little difference between interest rates of government and junk bonds, interest in the monetary metals is reviving, the Tocqueville Gold Fund's John Hathaway tells King World News tonight. The gold market, Hathaway says, is beginning to get wind of a "potential worldwide credit disaster."
  • Chris Powell: Manipulation of the gold market and the stock market has been so obvious for so long, Andrew Hoffman of the Miles Franklin coin and bullion dealership in Minnesota writes this week, that its motto might be "Each day worse than the last."
  • Lawrence Williams (MineWeb): It is not only the traditional underclasses who are suffering the effects of an at best stagnant economy. More and more the middle classes are being affected. Unemployment may be down according to official figures but if one looks at John Williams’ Shadowstats website, which calculates U.S. unemployment the way it used to be assessed, it is running nearer 23% on the old parameters than the official 6.2% the government says it is now. Similarly inflation calculated the way it was back in 1990 is close to 6% as opposed to the around 2% the government tells you. Similarly Shadowstats’ annual growth figures for GDP suggest the real level is close to -2% as opposed to the +2% the government statistics show. So government changes the goalposts to make announced statistics look far more favourable than they are in reality.
  • Jessie: Since the last time I posted the NAV Premiums around July 31, it appears that 12,028 ounces of gold bullion have been redeemed from the Sprott Physical Gold Trust, with a commensurate reduction in the number of units outstanding. I probably should take another look at the overall movement of gold from the Western trusts and funds. After all, gold is flowing from West to East in fairly steady and significant amounts. I like and hold both gold and silver, but am heavily weighted to gold. It seems to be at the locus of the evolution of money which is being resisted stubbornly, and heavy-handed bordering on clumsy, by the Anglo-American banking cartels.
  • Dr. Steve Sjuggerud: "The world is witnessing a climactic battle between deflation and inflation," Jim Rickards writes in his excellent new book The Death of Money. "It is just a matter of time" before this battle comes to a head. At some point, the U.S. economy will experience "an earthquake in the form of either a deeper depression [from deflation] or higher inflation, as one force rapidly and unexpected overwhelms the other." Which one will win? And what are the potential outcomes? Rickards goes over each of those in his book...Inflation is the easy one to understand...For the most part, the government creates this one... by "printing" trillions of dollars. Deflation is less easy to understand... For starters, we "have no living memory of it." The last episode of persistent deflation was in the Great Depression. Rickards calls deflation "the Federal Reserve's worst nightmare." For one, deflation "increases the value of government debt, making it harder to repay." Because of fear of deflation, the Fed can't stop its money printing. If it did stop, "deflation would quickly dominate the economy, with disastrous consequences for the national debt, government revenue, and the banking system."
  • Paul de Sousa: Barclays’ $44-million fine is the most recent evidence that gold prices have been manipulated for eighty years. The manipulation serves to inspire confidence in the US dollar. Gold should be owned as part of a diversified portfolio, and we have been presented with a wonderful opportunity to purchase it below its free market price. Gold is undervalued, oversold, and today represents a historically low buying opportunity for an asset that every investor should own. For investors who have not already built the foundation of their investment portfolio with gold, the manipulation has provided an opportunity to do so at extremely favourable prices. Investors who have already laid their gold foundation can rest assured that the manipulation cannot last forever, and the greater and the longer the manipulation, the greater the eventual price will be. It is easy to purchase assets when they are moving up. The best time to purchase is at the time of maximum pessimism.
  • Bill Holter: An ounce of gold and silver will always "just be" an ounce of gold or silver, what will have changed is the value of the dollar or any other currency that you are using as a measurement. Actually, even that statement needs to be corrected because it is in fact gold and silver that do the "measuring". The "to da' mooners" are wrong because what will happen is that the dollar will plummet in value to the nether regions of hell which means even a simple cup of coffee is going to the moon.
  • Bill Holter on gold at "no offer": The "no offer" scenario in my opinion has a very high probability of happening. Owners of gold and silver "own" the metals for a reason. They want something that is real and I would suggest that this group by and large will not part with it unless they know that they will get something real in return. What I am saying is that gold could go to $5,000 per ounce and once the "traders" get cleaned out, there just won't be any for sale because "fear" will send many holders into hiding. I believe that once the panic begins, many holders of gold will not part with any metal at ANY price until they have confidence that what they are trading for "really" has value. In other words, some sort of "confidence" in the currency (or a new currency) is a MUST before metal will be offered again for sale. This is what is meant whenever you hear the theory that gold and silver will "go into hiding".
  • Doug Casey: America is in a debt crisis. But few understand how big and bad it really is. And of course – the mainstream dogma is that we’ll pull through it soon. The bad news is that things are going to get much worse for the economy as a whole, and perhaps for life in America as we know it. The debt crisis will get far nastier than we can imagine... and go on far longer than we can imagine... before there’s any hope of a real recovery. Washington is putting you, me, and every other U.S. citizen $4.1 billion deeper into debt every day. That’s one and a half trillion in new debt every year, on top of our $14.5 trillion existing national debt. Which – by the way – is the biggest debt in the history of the world. So hold on to your shorts, because when the fallout hits, the devastation that roared through the economy in 2008 will look tiny by comparison. Historians are going to look back on 2011 as the year debt broke America. But there is hope for us as individuals. Yes, the U.S. economy is speeding down a one-way track to financial disaster. The impact will be felt worldwide. But you, me, and anyone else who wants to protect ourselves from financial decimation does have a way out.
  • Nathan McDonald (Sprott Money News): The CME Group and Thomson Reuters will begin administering the new system silver fix on August 15th. The new name, which was clearly chosen to sound much less like an organization that’s sole cause is not blatant manipulation (unlike the London Silver Fix), is the “London Silver Price”. Don’t let this change fool you. It goes much deeper than a simple name change. As the manipulation becomes more engrained due to the ongoing demand in physical precious metals and the ever-increasing amount of “paper” contracts that need to be issued to ensure that these precious metals remain suppressed, those in charge of the manipulation have to come up with new methods in which to keep prices down. The ISDA acknowledges the change in the form of an Amendment but then goes on to clearly state that the implementation of this contractual change it 100% OPTIONAL for all parties involved!! Essentially, this means that anyone underwater in their silver derivative contracts is getting a free pass. The silver manipulators who are facing growing losses will simply walk away, scot-free. Why would they agree to enter into a new contract if they can immediately erase their losses? The answer is, they won’t. This is a massive stealth bail-out. One that the public will blindly let slip by. This enables the manipulators to enter the game once again with a fresh start, whether they will take the other side of the trade is yet to be seen.
  • Tyler Durden: With Shanghai having limited retail exposure to high-yield bonds, and the Chinese corporate bond market having overtaken the United States as the world's biggest and is set to soak up a third of global company debt needs over the next five years, it is no wonder that, as Bloomberg reports, analysts fear "a prelude to a storm. "Privately issued notes totaling 6.2 billion yuan ($1 billion) come due next quarter, the most since authorities first allowed such offerings from small- to medium-sized borrowers in 2012. This week a 4th issuer has faced a "payment crisis" and while officials are trying to expand financing for small companies (which account for 70% of China's economy), with debt-to-equity ratios exceeding 200%, this is nothing but more ponzi. As Goldman warns, it appears China's Minsky Moment is drawing near (as the hangover from Q1's credit impulse kicks in).
  • Zero Hedge: China's manufacturing PMIs said everything's great in the mal-investment capital of the world? It appears for all the record credit creation in China, none of it is spilling over into demand from its closest trading partners.Australian unemployment spiked to 6.4% - its highest since 2002, missing the 6.0% expectation by the greatest margin on record. No "qualified' economists believed the print would be above 6.1%. AUDJPY is getting battered which implicitly means S&P futures have legged lower.
  • Tyler Durden: Russia will ban billions of dollars worth of food imports from the U.S. and other nations in retaliation for sanctions over the turmoil in Ukraine. Russian President Vladimir Putin today ordered restrictions on food and agricultural imports for one year from countries that have imposed or supported sanctions against Russia, according to the Kremlin website. Imported goods account for as much as 25 percent of retail sales in Russia.
  • Zero Hedge: With over 932 dead, the US Centers for Disease Control and Prevention has issued its highest level alert for an all-hands on deck response to the crisis in West Africa(that is spreading across the world). While President Obama proclaimed we are prepared and itis "not easily transmitted," it appears that is not entirely true. Meanwhile, CDC Director Frieden's "deep concerns" have been confirmed as Nigeria’s health minister has declared a health emergency as the deadly Ebola virus gained a foothold in Africa’s most populous nation, according to news reports. Nigerian authorities moved quickly late Wednesday, gathering isolation tents as five more cases of the Ebola Virus were confirmed in Lagos (the world's 4th most populous city with 21 million people). Most international flights from West Africa are also now screening passengers.

https://www.tfmetalsreport.com/comment/621467#comment-621467

DayStar

ancientmoney
Aug 7, 2014 - 9:17pm

Rangebound PMs . . .

Mr. Fix and I have opined many, many times here that there is no way PMs will be set free before the end of the current financial system. Over the last 3 years, there have been beau coup chances for PMs to do the expected rocket-shot as per normal TA. All to no avail. The bankers have killed every likely shot via their comex shorting regime.

Maybe August 15th will herald a new era, after the end of the silver fix, but I doubt it.

The suppression will continue until it can't. Only phyzz wins in the end. (Almost) Nobody will make a killing in paper PMs, except for a few banksters.

Advice:

Sell SLV, GLD, etc., and buy the phyzz. You and/or your ancestors will be glad for it.

ancientmoneyBoswell
Aug 7, 2014 - 9:09pm

Boswell, I have lots of silver . . .

but I bought Mesosilver cuz I need to get rid of fiat. I will use my phyzz silver to make colloidal only when necessary.

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Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

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