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US, Japanese Stocks Extend Losses; Turkish Lira Soars Most In 7 Years As Gold Mini-Flash-Crashes
Despite the world seemingly exuberant at Turkey's fraud election, sparking the biggest rally in the Lira since Nov 2008 (confirming once again that "markets love totalitarian governments,") it appears the centrally-planned machinations of the US equity markets are not living up to their promises of wealth for all (and rate-hikes don't matter). US and Japanese equity futures are opening notably lower, erasing all of the post-Fed exuberance with Dow Futs down over 200 points from pre-BoJ hope highs. Finally, gold futures were hammered lower at the Asia open (on heavy volume) only to rip back to practically unchanged.
Lira loves the 'fix'...
Biggest daily jump since Lehman...
Someone decided the thinly-traded pre-open markets on a Sunday night was an opportune time to flush 10s of thousands of ounce of paper gold (around $228 million notional) into the market...
And maybe higher rates are bad after all...
Japanese stocks are tumbling
As the world, contrary to a surge in pent up expectations that China is finally fine, realize that it isn't following this weekend's miss in both the Manufacturing PMI, and slide in the non-manufacturing PMi to the lowest level since 2008.
Finally, was the hawkish Fed hawkish not just to punk another iteration of Eurodollar/FF traders, but because its FRB/US model actually believes that there is no more slack in the economy and a December rate hike is imminent as reported earlier?

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Fed, ECB, Japan - round and round your QE love gets me like a hula hula hoop #BTFD
I wonder how the market responds when vlad starts bombing egyptian "isis" members. I say more power to him.
Long Iranian Revolutionary Guards!
Wondering if they have Revolutionary Guards trading cards?
At least I survived Jade Helm 15!!!!!
Not that I know off... all they have is this deck of cards with all those famous American politicians on it and Obama's even in it 2 times as the joker cards with his picture on it! Made in Iraq!
They're handing them down to all their soldiers, I guess they like to play with cards or something...
When I see insane shit like this and then realize that it's all based on fuck all, but affects people's lives to an incredible level - to the point of killing millions, the only sane reaction seems to be to crack another beer and hope to avoid being one of the aforementioned 'miillions'.
Pffft - glug.
What do we make of the paper gold bit?
The ONLY theory I can come up with, and all my theories relate in some way to a coming stock crash, is that someone whom always knew the paper gold was worthless decided to get rid of it because they are expecting a stock crash and when the system comes down paper gold will be worthless?
So rather than save it to moderate rigging they are dumping it because there will be no need to rig when you've already lost.
Kind of thin though.
Market thoughts:
http://thetradingcrucible.blogspot.com/
If there is about 128 oz of paper gold for every one once of real physical gold in the gold repositories and if they paper gold drops by HFT's causing the actual physical gold price to drop like this, what happens when all the paper gold is sold do to say huge market calls and or market collapse, what will the price of the real gold be when all is said and done? That does make me worry about my real gold investment!
You would think people would convert at least a portion of it to physical? Last month there was a huge increase in physical demand? If they were smart, I think gold/silver will do just fine although we live in interesting times and manipulation is always a factor.
Dear Captain Unactionable Faggot Wild Hair -
You know who this is. You still haven't answered my primary question from our little phone chat back in 2012: Why does someone dump 1000s of contracts for gold at the most illiquid time in the market making sure they get the worst possible price? Where's the reason or the logic, Captain?
And if you still don't have an answer, please have Gensler, The non-Goy Wonder call me if he has one. Hope you two are doing well in your new careers after doing so well as "regulators".
Are there any other CFTC members out there ready to answer that basic question? Anyone? Bueller?
Its a stop run. Start a waterfall, hit the stops, let the idiots sell, have a net underneath to catch the falling paper.
I'll fill in the part you left out - ...with naked shorts. Something the CFTC is supposed to stop.
Try again.
Who says the shorts are naked. If the big banks doing the paper selling on behalf of the Fed don't have offsetting longs from their instutional investor brokerage and other market making activities, then they probably have the physical and/or rehyothecated gold from funds they manage and deals they broker. Venezuelian debt security or GLD holdings, for example.
Moreover, gold is an international market and naked short selling is not prohibited in various countries. The big banks have branches operating in all of them. They can play jurisdictional arbitrage.
Your belief in the potential efficacy of the CFTC is quaint. Such faith in government institutions is what got us into this position in the first place.
I see China, Russia, India and any other able Countries investing in real Gold and have to come to the conclusion something is terribly under foot. They own all the gold. If another black swan hits the USA whether natural or engineered, confidence is lost in the US dollar. Our dollar is driven down while those other countries currencies are driven up. They establish their own Gold standard and their currencies are king. They have been using our own treasuries to purchase gold and their own fiat money to buy it as will. They will end up holding the real wealth. How very sinister and clever to use fake money to purchase gold, default on your own debt and still end up holding all the gold! Am I wrong?
Your exactly right and most of them arent very fond of us. There is a psychological war against gold right now to make it out to be a relic, it seems like its too late because our government is trying to convince us that its a relic? When things are good they dont have to say a thing, when things are bad they continually tell you they are good. If gold is a relic than they are telling us things are "good" which means things are really bad.
This is why I prepped.
I'm in England though, we'll probably be alright because even though we have a government every bit as psychopathic, ours also happens to be spineless and is now in with the Chinese.
Regardless, I have still prepped, and if you think about it, in historical stock crashes that have effected whole nations, there has been absolutely no warning, as there is absolutely no warning for those not following the markets and alternative media today!
Gold cartel at Asia open, copying Game 3 of baseball's World Series: First pitch, high and inside, directly at the batter's head. Trying to make folks duck out of the only REAL international money: GOLD.
I'm pretty sure Turkeys real gold stash is pretty large since they were illegaly buying up Irans during the sanctions and buying it pretty cheap, just like they are doing with Isis Oil.
In fact the entire sanctions debacle has woken people up to the importance of gold..possession is 9/10 the law..and if you own it..you are defacto the law..
http://www.forbes.com/sites/greatspeculations/2014/05/23/how-gold-helped-iran-withstand-u-s-financial-fury/
“The United States,” Rickards writes,” had inflicted a currency collapse, hyperinflation, and a bank run and had caused a scarcity of food, gasoline and consumer goods, through the expedient of cutting Iran out of the global payments system.” Gold had become Iran’s lifeline.
By July 2013, the U.S. Treasury had figured that out and so began stepping up enforcement of a ban on gold sales to Iran — “a tacit recognition by the United States that gold is money,” Rickards adds dryly.
With the gold avenue closed off, Iran amped up its transactions in local currencies with banks not subject to the embargo. “Iran could ship oil to India and receive Indian rupees deposited for its account in Indian banks,” Rickards explains by way of example. Inconvenient, to be sure, but it gets the job done.
“Iran also uses Chinese and Russian banks to act as front operations for illegal payments through sanctioned channels,” Rickards writes. “It arranged large hard-currency deposits in Chinese and Russian banks before the sanctions were in place. Those banks then conducted normal hard currency wire transfers through SWIFT for Iran, without disclosing that Iran was the beneficial owner, as required by SWIFT rules.”
“Iran,” Rickards writes, “also demonstrated how financial warfare and cyberwarfare could be combined in a hybrid asymmetric attack.”
In May of last year, experts believe Iranian hackers broke into the software systems that control oil and natural gas pipelines crisscrossing the globe. “By manipulating this software,” Rickards writes, “Iran could wreak havoc not only on physical supply chains but also on energy derivatives markets that depended on physical supply and demand for price discovery.” Accidental market panic, anyone?
“For the time being,” Rickards concludes, “Iran had fought the United States to a standstill in its financial war, despite enormous disruption to the Iranian economy. The U.S.-Iranian financial war of 2012–13 illustrates how nations that could not stand up to the United States militarily could prove a tough match when the battlefield is financial or electronic.”
Indeed. I’d go a step further. When Iran agreed to resume nuclear talks, a conceit took hold in Washington that “the sanctions worked” — the Iranians had been more or less starved to the negotiating table.
Not so, says former Ambassador William Miller, who was stationed in Iran during the 1960s and is in contact with the current regime. “Sanctions only made them more defiant,” he tells the Los Angeles Times.
Want proof? Iran put the same offer on the table in 2003 — only to be spurned by the United States. Actually, it was a better offer from Washington’s perspective. Back then, Iran had only 164 nuclear centrifuges; by 2013, it had 19,000. That’s a heck of a lot more bargaining chips to hold once negotiations begin in earnest.
The "Mini-Flash-Crash" move was less than $10. Au is down $2.60
S&P futes are down .27% ...