Archive - Jul 20, 2015 - Blog entry

All 15+ of you GOP morons..and still counting

In short, the era the phony recovery narrative has come unhinged.  We have no entered a cycle of actual price discovery in which financial assets fall to more accurate values. This will eventually result in a stock market crash, very likely within the next 12 months.

Yesterday, the London Times reported Barclays plans to cut 30,000 jobs within two years as part of an effort to cut costs after the recent firing of CEO, Antony Jenkins. An unidentified source went on to claim that the bank has set no new targets to cut jobs beyond the 19,000 (7,000 at Barclay’s investment bank) announced in May of 2014. If implemented, however, the cuts could reduce the bank’s global workforce to below 100,000. Barclays cut 14,000 jobs last year and is expected to axe 5,000 more staffers by the end of 2016.

Many analysts believe the officially reported 1,660 tonnes to be an understatement given the enormous volumes of gold that have been passing through Hong Kong - and through Shanghai in more recent years - and the large amounts that have been produced and bought domestically.

It is important to remember that as we have long pointed out two other entities, besides the PBOC, have also been buying gold - the State Administration of Foreign Exchange (SAFE) and the China Investment Corporation (CIC).

Here's what the chart looks like, and as you can see, it has thrust down to an interesting point not seen for about a decade:

Any valet confronted with the aformentioned message is, by federal statute, permitted to drop a deuce into the front trunk of the vehicle.

Two sides separated by the money line.

Be careful what you wish for...

In what looked like another successful bid to manipulate the gold market lower, there was massive selling of gold futures contracts - some 700,000 ounces worth of gold futures in mere seconds. The equivalent of one-fifth of a whole day’s trade in a normal session, was sold in a concentrated manner in less than two minutes - pushing prices lower again.

Greece. China. Banking system messes. Central bank printing. And here we are, under $1140. Breakdown?

That cannot be determined from price charts. We want to know the fundamentals of supply and demand. Here's how we measure it.