• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Switzerland

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Gold And Negative Interest Rates





In Japan, the European Union and Switzerland, where negative nominal interest rates have already been adopted, it was observed that demand for safes and cash increased. At the same time, we learn that negative rates have boosted demand for gold in Japan (sales of gold to Japanese consumers rose to 32.8 metric tonnes in 2015 from 17.9 tonnes a year earlier). According to Takahiro Ito, chief manager at Tanaka Kikinzoku Kogyo K.K.’s store in Tokyo’s Ginza shopping district, “Many customers are wagering that it’s better to turn their savings to gold as a safe asset rather than deposit money at banks that offer low interest rates." 

 
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Jim Bianco Warns "The Risk Of An 'Accident' Is Very High"





"Not only do the five largest financial institutions in the US have a higher concentration of assets than they did before the financial crisis but it’s the largest concentration ever. So we’ve made the too-big-to-fail-problem worse because we have bigger, more systemically important financial institutions now than we did in 2007 – and nobody seems to know what to do about it... [EU banks] are acting irrationally. They’re not acting that way because they don’t believe it or they don’t understand it. So we’re still all trying to feel around in the dark as to what this means. And that means that the chance of an accident is very high."

 
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Frontrunning: April 28





  • Markets Get the Worst Kind of Kuroda Surprise as BOJ Stands Pat (BBG)
  • Bank of Japan brushes aside calls for more easing despite price falls (WSJ)
  • Ford Profit Surges to Record as Sales of SUVs, F-150 Gain Speed (BBG)
  • Valeant Pharmaceuticals to Make Sweeping Changes to Board (WSJ)
  • Trump breaks taboos, attacks Clinton on gender issue (Reuters)
 
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The $2 Trillion Gamble That Saudi Arabia Cannot Win





The Vision for 2030 is mostly smoke and mirrors. Saudi Arabia probably cannot replace the money it will lose if oil goes out of style and so is doomed to downward mobility and very possibly significant instability. It has been a great party since the 1940s; it is going to be a hell of a hangover.

 
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Hybrid War Hyenas Are Tearing Brazil Apart





So Wall Street, US Big Oil and the proverbial “American interests” win this round at the circus – thanks to the, once again proverbial, vassal/comprador elites. Chevron execs are already salivating with the prospect of laying their hands on the pre-salt oil deposits; that was already promised by a trusted vassal in the Brazilian opposition. The coup goes on. The real hyenas haven’t yet pounced. So it's far from over.

 
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Switzerland Readies Military In Preparation For A New Wave Of Migrants





Just 4 months after Swiss army chief André Blattmann warned the risks of social unrest in Europe are soaring and advised the Swiss people to arm themselves, Switzerland is escalating its military preparedness. In response to Balkan countries closing down traditional migrant routes to Europe, Switzerland's military is taking steps to prepare for a potential new wave of immigrants in case it becomes part of a new route. As such, the neutral nation has put together a formal emergency preparedness plan, which outlines three scenarios, one of which would call for significant military intervention.

 
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The Shocking Reason For FATCA... And What Comes Next





Politicians around the world are working hard to build this emerging prison planet. The government used obscure and boring wording to conceal the true purpose of the Federal Reserve from the average American. It’s done the same thing with FATCA. In reality, FATCA is all about setting up the architecture for a global tax. Politicians around the world see citizens as milk cows...They merely exist to be squeezed to the last drop. Welcome to the new feudalism.

 
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Malaysia CDS Spike After Abu Dhabi Puts Scandal-Ridden 1MDB In Default





The dispute between an Abu Dhabi sovereign fund and Malaysia’s troubled state fund 1MDB over more than $1bn in missing payments hit a crescendo on Monday when the Emirates investment vehicle said its Malaysian counterpart was “in default” on an agreement between the two and terminated the deal.  Promptly thereafter, Malaysia 5 year CDS spiked by 11 bps, the most since March 21, to 163 bps as the market starts to quietly ask whether this ongoing scandal may just drag down the entire Malaysian state.

 
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Multiple Clinton Connections Emerge As More "Panama Papers" Names Revealed





Hillary Clinton recently blasted the hidden financial dealings exposed in the Panama Papers, but she and her husband have multiple connections with people who have used the besieged law firm Mossack Fonseca to establish offshore entities.

 
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Billion Dollar Lawsuits Filed Following Deutsche Bank's Admission Of Gold, Silver Rigging





Barely a day had passed since the historic admission of gold and silver price rigging by Deutsche bank, which as we reported on Thursday was settled with not only "valuable monetary consideration", but Deutsche's "cooperation in pursuing claims" against other members of the cartel, i.e., exposing the manipulation of other cartel members, and the class action lawsuits have begun. Overnight, two class action lawsuits seeking $1 billion in damages on behalf of Canadian gold and silver investors were launched in the Ontario Superior Court of Justice.

 
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What Happens Next (In Europe)?





A year ago today, European equities hit their highest levels ever. But, as Bloomberg reports, the euphoria about Mario Draghi’s stimulus program didn’t last, and trader skepticism is now rampant. The Stoxx Europe 600 Index has lost 17% since its record, and investors who piled in last year are now unwinding bets at the fastest rate since 2013 as analysts predict an earnings contraction. The trading pattern looks familiar: a fast run to just over 400 on the gauge, then disaster...

 
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Guess Which Major Bank Loses The Most From Brexit?





Banks have been lobbying intensively against Brexit. Among those leading the charge is Goldman Sachs. For three years, the bank’s executives have publicly warned about the downsides of leaving the EU... and now we know why (hint - it's not concern for the common man).

 
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A Take On How Negative Interest Rates Hurt Banks That You Will Not See Anywhere Else





Negative rates on savings accts., life insurers & banks suffering as central bankers push NIRP/QE, increasing FICC risk. So, what's now more stable than Brazilian real & gold & close to the yen & euro? Hint: Technology will put an end to this nonsense.

 
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