Gobble Up Some Jackass

136

It's a market holiday weekend so you know what that means....fresh Jackass for your listening pleasure!

In this wide-ranging conversation, The Jackass and I discuss:

  • the U.S. election results
  • the roiling global markets post-election
  • what the turmoil in the currency markets may suggest
  • how changes in global interest rates will impact the global economy and markets
  • the impact higher rates are having on hyper-levered balance sheets
  • AND MUCH, MUCH MORE.

Enjoy and Happy Thanksgiving to all!

TF

  136 Comments

infometron
Nov 24, 2016 - 11:46am

Mmmm, fresh jackass!

Anyone else also feeling like a little Charlie Brown?

Video unavailable

A very happy thanksgiving to one and all!

billhilly
Nov 24, 2016 - 11:49am

You know....

...if I am ever having a bad day all I have to do to break a smile is look at this picture !

s1lverbullet
Nov 24, 2016 - 11:50am

Comes Gold OI

Down 21k on Tuesday and another 34k yesterday!!

CC Horses
Nov 24, 2016 - 12:15pm

Mike Maloney

Gold Price Going Where? - Mike Maloney At Silver Summit

5 minute video

canary
Nov 24, 2016 - 12:25pm

Not Happy Thanksgiving to

CFTC, SEC, PPT, JPM, BIS and Benoit (they care less), FED, ECB, BOJ, Goldman, HSBC, Scotia and other bullion banks, LBMA, Comex, Wall Street, Current U.S. president for ignoring this crime, and the to the future president for most likely ignoring it as well.

Happy Thanksgiving to my wee doggies instead. It's snowing. Let's go for a walk.

s1lverbullet
Nov 24, 2016 - 12:28pm

Yen

pushing 113.33. Wow!!

s1lverbullet
Nov 24, 2016 - 12:38pm

Yes, and if this continues...

This will surely lead to even more pain during the short Comex session tomorrow. Be warned!

tvend
Nov 24, 2016 - 12:43pm

SGE gold price

I found this page, thought it was interesting. Physical premiums up, but even CNY price down.

https://goldprice.org/shanghai-gold-exchange-gold-price

Asian prices coming down to meet US prices, which is what happened last time there was a discrep. Now using a US holiday to accomplish this.

https://didthesystemcollapse.com/

Is this forced dollar strength happening to PREVENT a Fed rate hike?

Markedtofuture
Nov 24, 2016 - 1:04pm

India just made a big mistake with its currency ban

By Lawrence H. Summers and Natasha Sarin November 22

India's Prime Minister Narendra Modi announced on Nov. 8 that 500 and 1,000 rupee ($7.50, $15) bills — 85 percent of the cash in circulation — would cease to be legal tender in a crackdown on fraud and tax evasion. (Agence France-Presse via Getty Images)

One of us (Larry) has long advocated the abolition of the $100 note in the U.S. context and the 500 euro note (a.k.a. the bin Laden) in the European context. We assumed the next step after the European Central Bank’s announcement that the 500 euro note would be phased out would be discussion of the $100 bill and of the particularly pernicious 1,000 Swiss franc note.

Like everyone else, we were surprised by the dramatic action taken by Indian Prime Minister Narendra Modi to demonetize the existing 500 and 1,000 rupee notes. This is by far the most sweeping change in currency policy that has occurred anywhere in the world in decades.

First, it affects notes that are in widespread use, being valued at $7.34 and $14.68, respectively. While it might be argued that because India is much poorer than the United States, $15 in India is equivalent to $100 in the United States, the reality is that most Americans in the top 1 percent of the income distribution do not handle $100 bills on even a weekly basis, whereas 500 rupee notes are very widely used in India.

Second, and more fundamental, actions like those taken by the ECB or those proposed for the United States end the creation of new high-denomination notes. They do not contemplate declaring what has been legal tender to no longer be legal tender essentially overnight. It is the imminent prospect of notes currently held becoming worthless that has created such alarm and disruption in India. Small and medium-size merchants have seen their shops (which transact mostly in cash) deserted, and ordinary Indian citizens have spent the past week in line outside banks hoping to be able to exchange their cash holdings for legal tender.

Millions rush to cash in large notes at Indian banks Embed Share Play Video1:40

As banks reopen across India, millions rush to cash in their 500 and 1000 rupee notes, which were unexpectedly withdrawn on Thursday in a clampdown on tax evasion and funding militants. (Reuters)

We recognize that many of those who hold large quantities of cash in India have come by their wealth in corrupt or illegal ways. So, the temptation to expropriate is understandable. After all, as the argument goes, anyone who came by their wealth legally has nothing to fear from coming forward and exchanging old notes for new ones.

Most free societies would rather let several criminals go free than convict an innocent man. In the same way, for the government to expropriate from even a few innocent victims who, for one reason or another, do not manage to convert their money is highly problematic. Moreover, the definition of what is illegal or corrupt is open to debate given commercial practices that have prevailed in India for a long time.

There are also questions of equity and efficacy. We strongly suspect that those with the largest amount of ill- gotten gain do not hold their wealth in cash but instead have long since converted it into foreign exchange, gold, bitcoin or some other store of value. So it is petty fortunes, not the hugest and most problematic ones, that are being targeted.

Without new measures to combat corruption, we doubt that this currency reform will have lasting benefits. Corruption will continue albeit with slightly different arrangements.

What do millennials really care about?

A revealing survey of the generation that could swing the vote in this election.

On balance, nothing in the Indian experience gives us pause in recommending that no more large notes be created in the United States, Europe, and around the world. We were not enthusiastic previously about the idea of withdrawing existing notes from circulation because we judged the costs to exceed the benefits. The ongoing chaos in India and the resulting loss of trust in government fortify us in this judgment.

https://www.washingtonpost.com/news/wonk/wp/2016/11/22/india-just-made-a...

Marchas45
Nov 24, 2016 - 1:14pm

Well I've Been Outside

Working My Wee Tush Off preparing For Winter. Now To Sit Down with A Nice Cuppa And A Freshly Made Mince Pie And Listen To The Loud One. Keep Stacking

O! and Happy Thanksgiving

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 11/18

11/19 8:30 ET Housing Starts & Bldg Perms
11/20 2:00 ET October FOMC minutes
11/21 8:30 ET Philly Fed
11/21 10:00 ET Existing Home Sales
11/22 9:45 ET Markit November Flash PMIs

Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
11/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 10/28

10/30 8:30 ET Q3 GDP first guess
10/30 2:00 ET FOMC fedlines
10/30 2:30 ET CGP presser
10/31 8:30 ET Personal Income & Spending
10/31 8:30 ET Core Inflation
10/31 9:45 ET Chicago PMI
11/1 8:30 ET BLSBS
11/1 9:45 ET Markit Manu PMI
1/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Recent Comments

Forum Discussion

by Pete, 1 hour 55 min ago
by zman, Nov 20, 2019 - 9:42pm
by NW VIEW, Nov 20, 2019 - 8:59pm
by Pete, Nov 20, 2019 - 8:08pm
by Trail Trekker, Nov 20, 2019 - 7:42pm
randomness