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Comex On The Edge? Paper Gold "Dilution" Hits A Record 124 For Every Ounce Of Physical





Something surprising happened on Friday afternoon: in the latest daily COMEX update 25,386 ounces of Registered gold had been "adjusted" out of registered and into eligible. This reduction in deliverable Comex gold pushed the amount of registered Comex gold to an all time low: at 351,519 ounces registered Comex gold has never been lower! It also means that as of Friday's close there was a whopping 123.8 ounces in potential paper claims to every ounces of physical gold.

 
Tyler Durden's picture

First Default By U.S. Commonwealth In History: Puerto Rico Fails To Make Required Debt Payment





"Due to the lack of appropriated funds for this fiscal year the entirety of the PFC payment was not made today. This was a decision that reflects the serious concerns about the Commonwealth's liquidity in combination with the balance of obligations to our creditors and the equally important obligations to the people of Puerto Rico to ensure the essential services they deserve are maintained."

 
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"This Is The Largest Financial Departure From Reality In Human History"





We have lived through a credit hyper-expansion for the record books, with an unprecedented generation of excess claims to underlying real wealth. In doing so we have created the largest financial departure from reality in human history. Bubbles are not new – humanity has experienced them periodically going all the way back to antiquity – but the novel aspect of this one, apart from its scale, is its occurrence at a point when we have reached or are reaching so many limits on a global scale. The retrenchment we are about to experience as this bubble bursts is also set to be unprecedented, given that the scale of a bust is predictably proportionate to the scale of the excesses during the boom that precedes it. Deflation and depression are mutually reinforcing, meaning the downward spiral will continue for many years. China is the biggest domino about to fall, and from a great height as well, threatening to flatten everything in its path on the way down. This is the beginning of a New World Disorder…

 
Capitalist Exploits's picture

From the Mailbag: On Japan and the Yen





Will the Japanese “monetary perpetuum mobile” ever get questioned by financial markets?

 
Tyler Durden's picture

Gold And The Grave Dancers





Back in the 1960s, Alan Greenspan wrote a well-known essay that to this day is an essential read for anyone who wants to understand the present-day monetary and economic system (which is a kind of “fascism lite” type of statism, masquerading as capitalism) and especially the almost visceral hate etatistes harbor toward gold. Greenspan’s essay is entitled “Gold and Economic Freedom”, and as the title already suggests, the two are intimately connected.

 
Tyler Durden's picture

11 Red Flags As We Enter The Pivotal Month Of August 2015





Things are unfolding in textbook fashion for another major global financial crisis in the months ahead, and yet most people refuse to see what is happening.  In their blind optimism, they want to believe that things will somehow be different this time.  Well, the coming months will definitely reveal who was right and who was wrong.  The following are 11 red flag events that just happened as we enter the pivotal month of August 2015...

 
Tyler Durden's picture

"Asia Crisis, Tech Bubble Burst, Lehman"... And Today





Note that the classic sign of crisis and capital flight, higher interest rates, falling currency, and falling bank stocks are now visible in Brazil (and elsewhere). Indeed, the correlation between Brazilian bond yields and Brazilian financials/BRL turned sharply negative during each of the past 3 systemic crises (Asia ‘98, Tech ‘02 & Lehman ’08) and is doing so again today.

 
Tyler Durden's picture

The Latest Government Trust Fund To Go Bankrupt





Earlier this week I told you about Social Security’s Disability Insurance Trust Fund (DI), which will become insolvent in a matter of months.  The DI problem (just like the rest of Social Security) has been a long time coming.  But rather than form some meaningful solution, Congress has instead opted to commit financial fraud by commingling DI monies together with the other Social Security funds. Now comes the Highway Trust Fund. The difference between DI and the Highway Trust fund is that this one won’t be insolvent in a matter of years or months. Their own data shows that it may very well be toast… today.

 
Tyler Durden's picture

Economics 101: Wal-Mart Hikes Minimum Wages, Prepares To Fire 1000





"Please remember, these people are our neighbors and friends. You have a skill that will be very much in need when this goes down. You are experts in the job market and you know what it takes to get hired. This is a time for us to step up and do what we can to help."

 
Tyler Durden's picture

Will FTC Probe Of Largest For-Profit College Lead To Another Billion Dollar Taxpayer Bailout?





Earlier this week, the largest for-profit college in the country disclosed that the FTC is investigating whether the school adopted "deceptive or unfair practices" in the course of recruiting students. Now that the closure of Corinthian Colleges has set a $3.6 billion precedent, will the government investigation of Apollo Education put taxpayers on the hook again?

 
Tyler Durden's picture

"Why Commodities Defaults Could Spread", UBS Explains





"In the wake of the commodity price swoon one of the recurring questions is will the stress in commodity markets spillover to other sectors?," UBS asks. Spoiler alert: the answer is "yes."

 
Tyler Durden's picture

New York Mayor de Blasio Demands A Federal Bailout For Puerto Rico





While the Puerto Rican creditors' bargaining power on the island is to put it mildly, negligible, especially after the budget director made the imminent default into a crusade of poor versus rich, saying he won’t redirect cash from its operating budget to make debt payments, an unexpected supporter has emerged thousands of miles from the beleaguered island: New York's socialist mayor Bill DeBlasio. As CBS reports "New York City Mayor Bill de Blasio demanded President Obama and Congress immediately come to the island's fiscal rescue." "It's the federal government's obligation to act, because they can't stand idly by and watch Puerto Rico fail," de Blasio told a crowd of hundreds of Puerto Rico boosters gathered on the steps of City Hall.

 
Tyler Durden's picture

"Say A Little Prayer" Bill Gross Warns, "Zombie Corporations Now Roam The Real Economy"





Having exposed the reality that the world's capital markets are a manipulated shell game, Janus' Bill Gross has a message for the perpetual bulls in his latest letter to investors - "say a little prayer." Gross continues, "low interest rates are not the cure – they are part of the problem," warning that ZIRP has enabled, "a host of zombie and future zombie corporations now roam the real economy. Schumpeter’s 'creative destruction' – the supposed heart of capitalistic progress – has been neutered. The old remains in place, and new investment is stifled." As he previously warned, when the central bank manipulation is removed the likely trajectory of prices is downward...

 
Tyler Durden's picture

An Exasperated Tsipras Calls For Syriza Referendum On Bailout Cancellation





Speaking to a gathering of some 200 Syriza lawmakers on Wednesday, Greek PM Alexis Tsipras drew a line in the sand, insisting that the divisions within the party cannot persist. In a dramatic move, Tsipras called for a party referendum on Sunday to decide once and for all whether Syriza lawmakers will support the bailout or push for its cancellation.

 
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