Posts Categorized: In The News

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Lawsuit By Sandy Hook Victims Against Gun Manufacturer Allowed To Move Forward
March 14, 2019

After months of silence, the Connecticut Supreme Court on Thursday reinstated a wrongful death lawsuit filed by the families of nine victims of the Sandy Hook Elementary School shooting against Remington Arms, the manufacturer of the rifle used in the shooting.

The court’s narrow decision, overturning a lower court judge, rules that Remington can be sued over its marketing practices under a Connecticut state law, despite protections offered to gun manufacturers by federal law. The ruling sends the case back to the lower court.

The suit is a high-stakes challenge to gun companies, which have rarely been held liable for crimes committed with their products, and could mark a new front in the battle over gun regulations and corporate accountability. It centers on the Protection of Lawful Commerce in Arms Act (PLCAA), a 2005 law that shields manufacturers and retailers from civil liability in lawsuits brought by victims of gun violence. An eventual ruling against Remington could establish legal precedent, opening doors for more lawsuits against gun manufacturers, and expose the company’s communications about its marketing plans.

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Bill Holter’s Commentary

Sunday reading.

Why Gold Is Still The Best Basis For Money
March 16, 2019

As we continue to enjoy the “Yellen gold standard,” now in its Powell phase — who knows how long it will last — let’s look at why the gold standard system worked so well for so many centuries, including nearly two centuries of U.S. history before the rupture in 1971, during which time the United States became the wealthiest country in the history of world.

In 1971, the economist Arthur Laffer — he was the chief economist of the Office of Management and Budget at the time — was asked what he thought the consequences would be of Nixon’s “closing of the gold window,” which effectively ended the Bretton Woods period when the dollar’s value was fixed at $35/ounce of gold.

“It won’t be as much fun to be an American anymore,” Laffer reportedly replied. And he was right.

But why? Why is it that the collective intelligence (let’s be generous) of today’s central bankers, and indeed all the central bankers since 1971, cannot outperform a yellow rock? This probably strikes some as bizarre, but it has always been thus. Way back in 1928, in a book called The Intelligent Woman’s Guide to Socialism and Capitalism, George Bernard Shaw declared:

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Jim Sinclair’s Commentary

The latest from John Williams www.shadowstats.com

– Consumption/Manufacturing Downturn Driven by Consumer Liquidity Woes

– Weakening Industrial Production, Manufacturing and Capacity Utilization Were Consistent With a Pending Downside Revision to Fourth-Quarter 2018 GDP and Signaled High Odds of a First-Quarter 2019 GDP Contraction
– These Data Reinforced Similar Negative Revisions Seen With Earlier Indicators, Including: Retail Sales, Housing, Construction and Payrolls
– February Housing Starts (March 26th), January Trade Deficit (March 27th) and An Eviscerated Annual Industrial Production Benchmarking (March 27th) Are the Last Major Reports, Prior to the March 28th Final GDP Estimate; There Is Limited Chance of a Reprieve
– The Economy Is Weakening Sharply and Quickly, Due to the Overly Aggressive Federal Reserve Tightening and Rate Hikes
– Where Current U.S. Economic Activity Has Signaled a New Recession, Major Business Sectors, Such as Manufacturing and Construction, Never Recovered Fully from the Last One
– Accordingly, the March 20th FOMC Meeting Is Not Too Early to Address the Intensifying Business Collapse; Yet, the FOMC Is Expected to Sit on Its Hands

“Bullet Edition No. 3”

www.shadowstats.com

Bill Holter’s Commentary

Did you have any doubt this is a credit bubble?

Bonds With “Worst-Ever Covenants” Are 3x Oversubscribed
March 15, 2019

Just how much investor appetite is there for bonds? So much, that even in a week that saw the second biggest equity inflow on record (after a 13 week drought) buying of bonds continued for a 10th consecutive week, rising to $7.01bn from $2.74bn the week prior.

 

 

 

 

 

 

 

 

 

This flood into fixed income continues despite repeated warnings about the dangers of the corporate debt bubble from such investing icons as DoubleLine’s Jeff Gundlach and Marathon’s Bruce Richards, not to mention the IMF and BIS, who have been focusing on the growing risk of mass downgrades in the $3 trillion BBB-space, which could translate into a tsunami of fallen angels during the next recession.

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The Millennial Falcon (Ag/AU) Returns on the Ides of March
March 15, 2019

Good Friday Morning Folks,   

        Welcome to the early Morning Reversal where Gold turned on the shorts the very next day with the price now above the ($1,300) Maginot line at $1,303.20, up $8.10 and with the usual, close to the high of $1,304.30 with a low at $1,293.70. Silver is leading the charge (ok, barely) with its trade at $15.36, up 19 cents and only 3 cents off its high with a low at $15.165. It’s still NOT about the Dollar or our economic conditions or if it is, then the Algos are in some sort of funk with the US$’s trade at 96.675, down only 9.4 points with a low at 96.585 and the high at 96.775. All of this activity was done around 5 am pst and still before the Comex open. The Venezuelan calculations for Gold’s price now shows a value at 13,015.71 Bolivar, regaining some 51.93 overnight with Silver’s price now at 153.408, et tu (apropos for today’s Ide’s of March) regaining 1.198 Bolivar.    

      The March Silver Delivery Cycle carries on with the count now at 75 demands for physical with Zero Volume up on the board so far this morning, proving a drop of 122 contracts being settled out somewhere between here and that City in Chaos, England. At least the Overall Open Interest is proving something as the count lost another 1,240 contracts during yesterday’s pump and dump scheme giving us a total count of 187,171 Overnighters still in trade.    

      There are many approaches to Pumping and Dumping, one way to go is to remove a batch of short positions just before the closing count and then re-enter these positions during the next day’s trades (pumping and dumping) but then clear out more contracts just before the closing count is done again. This would also explain the High Volume count James Mc, from Le Metro Pole Café fame, talks about during the sleeping period the moment COMEX opens. I’m not saying this is happening, I’m just saying there are many possibilities which we will solve in time as the Ides of March moves on.

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Silver Is Hated By The Empire As Much As The Millennial Falcon
March 14, 2019

Great and Wonderful Thursday Morning Folks,   

      Gold is down this morning with the trade doing exactly the opposite of what it should, with the price now at $1,298, once again below that ($1,300) Maginot line with the London Low right there at $1,295.70 with the high to beat (and it will in time) at $1,310.30. Silver is equally punished for being part of the global economic barometer that works regardless of the game with its trade at $15.24, down 21.6 cents and, of course, right beside the low of $15.21 and the high at $15.47. None of this activity is about the US Dollar or our nation’s weakness within the arena of economics and finance, the Dollar’s value is up 25.3 points, just because of Britain, with the value pegged at 96.765, close to the high at 96.805 with the low that needs to drop a hell of a lot more at 96.475. Of course, all this had to be done while we sleep and while Britain ignores its voters.

      Our Venezuelan example of too much printed fiat is showing Gold’s conversion price at 12,963.78 Bolivar, taking back about 87.89 Bolivar from yesterday’s huge gains with Silver now at 152.210 losing even more than it gained yesterday now totaling a loss of 2.546 Bolivar overnight. No matter what currency Silver is calculated under, it is equally as hated by the Empire as much as the Millennial Falcon has been in the Star Wars movies over all these decades. One thing for certain, Silver and Gold will never go away because they are real and the biggest pain in the ass for the failing fiat empire.   

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Bill Holter’s Commentary

Damn right something went wrong…finally something that’s not fake news!

 

 

 

 

 

 

 

 

 

Q drops Lisa Page + Spotlight Brexit
March 13, 2019

Great and Wonderful Hump Day Morning Folks,

         We are seeing a rare follow thru day today as Gold seems to be adding some more value with the trade at $1,306.80 up $8.70 closer to the high at $1,309.40 than the low of $1,300.60. Silver is following but still adding value with the trade at $15.495, up 8.2 cents inside a trading range between $15.55 and $15.435. The US Dollar is once again stagnant with its value pegged at 96.815 down 7.9 points and close to the low at 96.795 with the high at 96.985, all this was done a bit after 5 am pst, because of all the windows updates. Venezuelan Gold is now priced at 13,051.67 adding a humongous 99.88 Bolivar in value overnight with Silver now priced at 154.756 adding .699 Bolivar.    

     March Silver’s Delivery Demands remain constant with the requests for physical standing at 417 contracts with a Volume of 2 up on the board so far this morning. Silver’s Overall Open Interest dropped a bit more during yesterday’s activities with the count now at 189,878 Overnighters proving another 1,075 obligations left the trade as the market went higher. Normally this would indicate shorts exiting the trade, but with Algo’s? Who really knows anymore?

           Yesterday was rather enlightening when Q dropped the note about the Lisa Page Testimony being released for all to see and discuss giving us a much deeper view into who/what/why/where was going on while the Tarmac Meeting, Hillary Clinton, and those inside the upper levels of the “initials” management approached the problem of an insider not making it into office under their support. What was being discussed behind the scenes will make things far more interesting in the future because we have yet to discuss (in depth) Britain’s involvement. No point in going there right now because Teresa May is demanding spotlight time with her Brexit deal (being) crushed by MPs AGAIN meaning we’re no nearer to quitting EU after 993 days. Proving the point that politicians have no purpose what so ever but to obstruct, delay, and phuck shit up (very very familiar).

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Bill Holter’s Commentary

“the link you tried to visit goes against our community standards”…because it tells the TRUTH!

I predicted these social media sites would ultimately implode via their own false narratives, it looks like they are now well on their way!

Facebook Bans Zero Hedge
March 12, 2019

Over the weekend, we were surprised to learn that some readers were prevented by Facebook when attempting to share Zero Hedge articles. Subsequently it emerged that virtually every attempt to share or merely mention an article, including in private messages, would be actively blocked by the world’s largest social network, with the explanation that “the link you tried to visit goes against our community standards.”

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Jim Sinclair’s Commentary

Mr. Williams of shadowstats.com offers the following.

– Latest Retail Sales, Employment and Monetary Base Show Increasingly Negative Economic Trends
– January 2019 Retail Sales Signaled a Downside Revision to Fourth-Quarter 2018 GDP, Along With an Early Indication for a First-Quarter 2019 GDP Contraction
– Annual Growth in February 2019 Payrolls Slowed in a Manner Consistent With a Faltering First-Quarter Economy
– February 2019 Saint Louis Fed Adjusted Monetary Base Declined Year-to-Year by 13.0% (-13.0%), Worst Showing Since 1937 Onset of Great Depression Second Down Leg
– Reporting of Broad U.S. Economic Activity Signals a New Recession, While Major Sectors Such as Manufacturing and Construction Never Recovered from the Last One
– The FOMC Should Be Feeling Increased Pressure to Ease, But Action Still Is Not Likely Next Week

Bullet Edition No. 2

www.shadowstats.com

Today – Silver is leading the charge!
March 12, 2019

Good Tuesday Morning Folks,   

      It looks like those that remembered are still in the game as Gold turned higher immediately after the reopening of trade last night with the price now at $1,296.80 up $5.70 and close to the high of $1,297.90 then that low at $1,292. Today, Silver is leading the charge with its trade at $15.425 up 15.1 cents and it too right beside the high at $15.45 with a low at $15.31. Today’s activity is definitely NOT about the Dollar because it has been stagnant for oh too long with the trade now at 96.13 down 4.4 points but inside an active trading range between 97.245 and 96.885, of course all this is done way before 5 am pst and the Comex Open. The failings in Venezuela are many with more failings being introduced with fake players getting exposed, with Gold now trading at 12,951.79 Bolivar, gaining a whopping 21.97 (one day this will be in US$) overnight with Silver gaining 1.198 Bolivar with the price now at 154.057.     

      March Silver’s Delivery demands are now at 414 contracts waiting for receipts for physical with a Volume of 3 up on the board so far this morning losing 121 receipts somewhere between here and London. It is important to understand that Harvey Organ’s numbers show the totals bought and sold but only in receipts transferred, after these trades in the “spot” month are made. Some of these trades are “allowed” because the traders are playing the game with the required 100% margins but never take delivery. This is why spot month trading is so misunderstood by most that do not play the game but write about it, and is why we help define the process. Silvers Overall Open Interest is continuing to fall ever so slightly with the total count now at 190,953 Overnighters proving a drop in OI from yesterday’s early morning count by 1,040 obligations.    

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Bill Holter’s Commentary

Did the Tylers listen to this week’s call for subscribers? Denny point blank asked this very same question on Saturday…without a doubt, THE most important financial question facing our nation.

The $64 Trillion Question: With Foreigners Stepping Aside, Who Will Buy U.S Treasuries?
March 10, 2019

During its latest, quarterly meeting, the Treasury Borrowing Advisory Committee (aka the TBAC, which many years ago we dubbed the Supercommittee That Really Runs America, an assessment which 8 years later Bloomberg now generally agrees with), released minutes of its Jan. 29 meeting held at the Hay-Adams Hotel in conjunction with the U.S. government’s quarterly refunding announcement.

While there were many topics of discussion (discussed previously here), the TBAC highlighted two key areas of concern: i) the soaring US budget deficit, and specifically the possibility of significant financing gap over next 10 years amounting to over $12 trillion and the potential need for more domestic investor participation if foreign reserve growth slows; and tied to that ii) the worry that since “foreign investors already hold significant dollar debt”, and have been paring back substantially on their Treasury purchases in recent years, the US will have to increasingly rely on domestic savings to fund its future budget deficits.

Of particular note, the TBAC said, tongue in cheek, that while the “USD is still the dominant reserve currency”, reserve managers have been very gradually increasing allocation to other currencies, and that the USD share of FX reserves has steadily come down from 72% in 2000 to 62% now. It also pointed out that other countries with significant debt issuance needs (as a share of GDP) depend far more on domestic savings. As a result, “the Treasury should plan to meet financing needs more domestically than in the recent past.”

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Silvers US$ Value Should Already Be At The Bolivars Price
March 11, 2019

Good and Wonderful Monday Morning Folks,   

      Remember that Gold had a good day on Friday where it rallied just over 1%. Also remember that good days like these are almost never allowed to have a second or third day of rally with today being no different with Gold now at $1,294.60 down $4.70 and right at the London Low of $1,294.20 with the high at $1,299.20. Silver, the Tag-A-Long-Kid, is now trading at $15.305, down 4.4 cents and at the low of $15.285 with the high to beat at $15.365 after its 30 cent price rise on Friday. The US Dollar is up but barely with the value now pegged at 97.30, up 3.1 points and closer to the low of 97.23 then the high at 97.41. All this of course is done way before 5 am pst and the Comex Open. The Venezuelan nightmare continues with Gold now pegged at 12,929.82 Bolivar gaining 5 more Bolivar over the weekend with Silver at 152.859 it too gaining 1.698 Bolivar as we read that the people of the country have now been without power for four full days.

           March Silver’s Open Interest is the same as last Friday’s numbers which means we still don’t have good up to date data with the count at 535 requests for physical with 0 Volume up on the board so far this morning. We do a have a buy order for 33 more obligations at $15.215 (March) with no takers as of yet proving someone still needs product. Silver’s Overall Open Interest lost 143 contracts with the total count now at 191,993 Overnighters still in trade as we wait for better data later in the day.  

       Theresa May is expected to call a second meaningful vote on her Brexit plan (Today), the prime minister is facing another massive defeat .. But according to MPs and cabinet ministers who have shared their grievances with the Telegraph, BBC and other British media outlets, it’s possible that May could be forced to resign before she gets there. It seems everything is tied to Britain so we wait to see if anyone else out there sees the precious metals as a safe haven as things continue to get wonky in all currencies and as the British Pound may be the next to take a hit.  

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California State Workers Hoarding Vacation Days, Creating $3.5-Billion Debt For Taxpayers
March 7, 2019

After 36 years as a California government transportation engineer, Bijan Sartipi retired with much more than a goodbye party: He was paid $405,000 for time off he never used — one of more than 450 state workers who took home six-figure checks when they left their jobs last year.

And Sartipi didn’t top the list — a prison surgeon in Riverside pocketed $456,002.

In a trend that stems from lax enforcement of the state’s cap on vacation accrual, more and more state workers are able to retire with massive payouts for unused vacation and other leave. That could become a budget breaker for California as an aging workforce heads into retirement. During the next recession, California will be obligated to continue the payouts, forcing lawmakers to cut programs to balance the state budget.

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Bill Holter’s Commentary

This is a true story, I termed this “debt saturation”. There is no mathematical escape…

The Dollar – King Rat Of Failing Currencies
March 7, 2019

The explanation for the sudden halt in global economic growth is found in the coincidence of peak credit combining with trade protectionism. The history of economic downturns points to a rerun of the 1929-32 period, but with fiat currencies substituted for a gold standard. Government finances are in far worse shape today, and markets have yet to appreciate the consequences of just a moderate contraction in global trade. Between new issues and liquidation by foreigners, domestic buyers will need to absorb $2 trillion of US Treasuries in the coming year, so QE is bound to return with a vengeance, the last hurrah for fiat currencies. However, China and Russia have the means to escape this fate, assuming they have the gumption to do so.

Introduction

It may be too early to say the world is entering a significant economic downturn, but even ardent bulls must admit to it as an increasing possibility. Financial analysts, both bovine and ursine, face a complex matrix of factors when judging the future effect of any downturn on currencies, and of the prospects for the dollar in particular.

Some will take the view that a global downturn will continue to drive foreign currencies to be sold for dollars, because dollars are perceived to be less risky and required to repay debt. Some will point to the tension in the euro from the extra twist an economic downturn gives to the debt crisis forced on Italy and the other three PIGS, compared with the relative stability of the Hanseatic nations. Some analysts will expect China to get her come-uppance when her debt-fuelled economy implodes into crisis.

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Philadelphia Is First U.S. City to Ban Cashless Stores

March 7, 2019

Philadelphia is the first major U.S. city to ban cashless stores, placing it at the forefront of a debate that pits retail innovation against lawmakers trying to protect all citizens’ access to the marketplace.

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