My Dear Extended Family,
Now the Plunge Protection Team, real in fact and law, has to turn the tide immediately or confidence is gone and so is everything else except monetary gold and silver. Once again the big boys, as in the 1970-1980 period, are about to make the most money over the shortest period of time long on gold and silver. Nothing changes except this might well be the precious metals rally you never sell. There is a sound argument for $50,000 per ounce gold. There is a strong basis to consider the factual lack of physical gold and silver due to the secret buying by the gold banks and super wealthy personalities during the four year decline while pressuring the paper market for precious metals to make the purchases of the physical bullion. I believe that is that is the total story. I have never changed my mind or been told to by the inside, the only ones that really know what the plan is. I am however told that this rally off $1080 gold will be stupendous.
S&P 500 Sinks Most in 18 Months as Emerging-Asset Rout Spreads
August 19, 2015 — 7:17 PM EDT Updated on August 20, 2015 — 5:51 PM EDT
The rout in emerging-market assets knocked the Standard & Poor’s 500 Index out of its seven-month trading range and sent U.S. equities down the most in 18 months amid mounting concern that global economic growth is faltering.
A selloff in currencies from Kazakhstan to Thailand roiled stocks around the world, wiping out 2015 gains in U.S. equities and sending the U.K. share market into a correction. Investors sought the safety of gold and Treasuries as the S&P 500 breached a key technical level its been above since March.
Investor anxiety over emerging markets is increasing as the Federal Reserve considers when to boost interest rates, a move that would burnish the appeal of dollar assets. A global slowdown may delay the move, with minutes of the Fed’s July meeting out Wednesday indicating officials are concerned over stubbornly weak inflation caused in part by a commodities rout.
“There are so many more concerns than hopes,” said Larry Peruzzi, director of international trading at Cabrera Capital Markets LLC in Boston. “There are global growth concerns, Fed minutes created some uncertainty about rates, and also playing a part is oil poised to dip below $40. Add in light August volumes in the stock pot and you get a negative 1 percent move.”
The S&P 500 closed down 2.1 percent by 4 p.m. in New York, its lowest level since February. The MSCI All-Country World Index sank to a seven-month low, as the U.K.’s FTSE 100 Index slipped an eight straight day. Yields on 10-year Treasuries dropped six basis points, or 0.06 percentage point, to 2.07 percent, and gold advanced to a one-month high. Greek bonds declined Prime Minister Alexis Tsipras quit and called snap elections.
It hurts to say it, but sometimes Donald Trump speaks the truth
Donald Trump offends entire voting blocks at will, constantly gets his facts wrong, and most of his policy positions are either contradictory or insane. Yet, on some issues, he’s also right.
His deliberate forays into xenophobia and arrogance on immigration and foreign policy certainly remain awful and ugly, but there’s also another reason he continues to sit atop the Republican polls: he speaks a particular kind of truth about some issues the way only someone with no filter can. These days, his venom particularly stinging to other Republicans, whom he has no problem attacking with a delightful abandon that is usually considered sacrilegious in inter-party primaries.
Or as Jon Stewart described it: “Trump has no control over the projectile vomit of dickishness that comes out of his mouth every time he opens it. It was inevitable that some of his word-puke was going to get on [Republicans].” And sometimes it’s just fun to watch. You can despise the man and dread his presidency, but still enjoy the show.
His criticism of “frontrunner” Jeb Bush – who is really only the frontrunner in the minds of billionaires – have been spot on, yet not something any of the other candidates would dare say for fear of denigrating the last two Republican presidents, Jeb’s brother and father. Trump took credit for the record audience during the first GOP debate by remarking, “Who do you think they were watching? Jeb Bush?” He’s right – Bush is boring. And I don’t mean boring in the technocratic, attention-to-details way. I mean he is mind-numbingly unoriginal and can’t even express those unoriginal ideas in a politically adept manner.
Trump has not minced words on George W Bush’s Iraq War, either, calling it the “disaster” that it was and is, and hammering Jeb for his stumbling defense of his brother’s war and its decade-long aftermath.
And when Trump posted a mash-up video on of the Bush family presidency on Instagram saying “Enough is enough – no more Bushes!” he nailed it. (Granted, Trump’s “solutions” for the second and third Iraq wars is beyond reckless and borderline sociopathic. For Isis, he prescribes re-invading Iraq and “stealing” all of their oil fields, and he claims “we should’ve invaded Mexico” instead of Iraq the first time.)
China central bank tries to soothe global markets, says no basis for yuan to fall further
By Kevin Yao and Pete Sweeney
China’s central bank said on Thursday there was no reason for the yuan to fall further given the country’s strong economic fundamentals, helping to restore calm to jittery global markets after it devalued the currency earlier in the week.
As the yuan slid for a third straight day, the People’s Bank of China (PBOC) said the strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided “strong support” for the exchange rate CNY=CFXS.
China’s decision to devalue the currency on Tuesday by pushing its official guidance rate down 2 percent sparked fears of a “currency war” and roiled global financial markets, dragging other Asian currencies to multi-year lows.
It also drew accusations from U.S. politicians that Beijing was unfairly supporting its exporters.
The PBOC said at the time that the move was a one-off depreciation, but sources involved in the Chinese policy-making process told Reuters that some powerful voices within government were pushing for the yuan to go still lower, suggesting pressure for an overall devaluation of almost 10 percent.
PBOC Vice-governor Yi Gang said it was nonsense to believe that government expected the yuan to fall that far.
Earlier on Thursday, the PBOC said there was no basis for continued depreciation of the yuan.
Jim Sinclair’s Commentary
This currency war is going to get wild and every central bank will seek to protect themselves or basically give up to the marketplace. I figure that is a very good reason for a new high in gold. The Plunge Protection Team that really exists in fact and law is going to have their hands full now. The second the major central banks break ranks this illusion of soundness in international sovereign debt will come to an immediate end. The last man standing will be holding gold. Not US or anyone’s treasuries.
Kazakhstan Follows Russia in Floating the Currency
ASTANA./TASS/. Kazakhstan will allow its national currency tenge to float freely, Prime Minister Karim Masimv said at a government telephone conference on Thursday.
“The decision was made to start a new economic policy from August 20 on the basis of inflation targeting and to cancel the currency corridor,” the premier cited a joint statement of the government and the National Bank.
“A new economic policy in conditions of fundamental negative changes in the global economy necessitates a new monetary policy to ensure a balance between economic growth and stability of prices,” he said.
“With this in view, the government and the National Bank of the Republic of Kazakhstan have made the decision to start the implementation of a new monetary policy, based on the inflation targeting regime and move to a floating exchange rate,” the prime minister said.
Jim Sinclair’s Commentary
Mr. Williams shares the following with us.
- Unfolding “New” Recession Likely Will Override the Impact of Any Fed Action, Inaction or Continued Befuddlement
- Down in Second-Quarter 2015, Real Earnings Are on Track for Third-Quarter Decline
- Monthly Real Retail Sales Rose by 0.4% in July, with Annual Growth Still Signaling Recession
- July Annual Inflation: 0.2% (CPI-U), -0.3% (CPI-W), 7.8% (ShadowStats)
“No. 745: July CPI, Real Retail Sales and Earnings, Recession and the FOMC ”
Pentagon Boosts Drone Flights 50% As Bernanke Warns Cutting Defense Spending Could Hurt Economy
August 18, 2015
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
In the event you were becoming concerned that the U.S. government might be backing away from its longstanding policy of endless violence, militarism and bloodshed, fear not. If we know one thing for sure, it’s that defense contractors and the military-intelligence-industrial complex must earn. And continue to earn it will.
So despite the Air Force having a hard time finding pilots for its drones, the Pentagon still plans to ramp up drone flights by 50% over the next four years.
We learn from the Wall Street Journal that:
The Pentagon plans to sharply expand the number of U.S. drone flights over the next four years, giving military commanders access to more intelligence and greater firepower to keep up with a sprouting number of global hot spots, a senior defense official said.
While expanding surveillance, the Pentagon plan also grows the capacity for lethal airstrikes, the most controversial part of the U.S. drone program and its rapid growth under President Barack Obama . Strikes by unmanned aircraft have killed 3,000 people or more, based on estimates by nonpartisan groups.
Initial Jobless Claims Rise For 4 Straight Weeks – First Time In 5 Years
Submitted by Tyler Durden on 08/20/2015 08:42 -0400
While still hovering at multi-decade lows, initial jobless claims (up 4,000 to 277k) have now risen for 4 straight weeks (for the first time since August 2010).
Conference Board “Leading Indicators” Plunges To Lowest Since March 2013
Submitted by Tyler Durden on 08/20/2015 10:04 -0400
The July index of leading indicators, from The Conference Board, cratered in July. The self-referential index (which includes Treasury yields) tumbled to -0.2% as the curve steepened. The last time it was weaker than this was March 2013.