Usually on semi-US holidays such as today, when bonds are closed but equities left to the whims of vacuum tubes, equities do their mysterious ramp and never look back. So far today, however, this has failed to happen with futures at lows, driven by a noticeably weak EURUSD, which has traded down nearly 100 pips from the Friday late day ramp close, currently at 1.2940. It is unclear what has spooked the Euro so far, although all signs point to, as they did 2 months ago, the Spanish lack of willingness to throw in the towel and demand a bailout, thus easing conditions for everyone else if not for Spain PM Rajoy. Today's main event will be European finance ministers meeting in Luxembourg to discuss the recent Spanish economic transformation efforts as well as an attempt to accelerate banking cooperation and implement a banking regulator - something which is needed for the ESM to monetize bank debt, and something which Germany has been firmly against from day one. Additionally, a day ahead of Merkel's visit to German (where she will be protected by 6-7,000 cops), the ministers are likely to make a positive statement on Greece’s progress toward austerity targets, according to European viceroy Olli Rehn said. In other overnight news, German Industrial Production saw a -0.5% decline, which was modestly better than the -0.6% expected. Over in Asia, China reopened from its 1 week Golden Week hibernation with the SHCOMP down -0.56% to 20.76.42 following a small bounce in the China HSBC Services PMI to 54.3 from 52 in August, and with average house prices rising for a 4th month in a row, and even more repo operations by the PBOC, the result is that the market's ungrounded hopium for an immediate PBOC liquidity injection was taken away pushing regional markets lower.
- Romney dominates presidential debate (FT)
- What Romney’s Debate Victory Means (Bloomberg)
- Obama Lead Shrinks in Two Battlegrounds (WSJ)
- "Everything will fall apart unless the Spanish conditions are extremely tough" German policy-maker (Telegraph)
- Draghi Stares at Spain as Brinkmanship Keeps ECB Waiting (Bloomberg)
- RBS facing loss after Spanish property firm collapse (Telegraph)
- Burdened by Old Mortgages, Banks Are Slow to Lend Now (WSJ)
- The Woman Who Took the Fall for JPMorgan Chase (NYT)
- European Banks Told to Hold On to $258 Billion of Fresh Capital (Bloomberg)
- Europe Weighs More Sanctions as Iran’s Currency Plummets (Bloomberg)
In order to avoid social unrest and absorb the world's young people entering the global workforce, the World Bank Development Report states that 600 million jobs must be created from 2005 to 2020. As Bloomberg BusinessWeek reports, jobs should be at the top of governments' agendas or they could face further uprisings such as toppled leaders in Egypt and Tunisia. "Demographic shifts, technological progress, and the lasting effects of the international financial crisis are reshaping the employment landscape in countries around the world, and those that successfully adapt to these changes and meet their jobs challenges can achieve dramatic gains in living standards, productivity growth, and more cohesive societies." However, those countries that don't adapt, face the kind of social unrest we have warned of again and again - and are starting to see in more and more civilized Western nations. Their findings:- 90% of jobs are created in the private sector and so Governments must create an environment that encourages investment - especially in small- and medium-sized business. So - a mere 600 milion jobs and all is well - amazing!!!
It will not come as a surprise to anyone who has spent any time reading Zero Hedge (here, here, and here very recently) but now yet another one of our 'crazy fringe blog' non-consensus ideas - the fact that China is cornered by inflation concerns and unable to ease aggressively - has now been confirmed by none other than the Bank of China and Bank of Korea themselves. As the WSJ reports, "The rise in global liquidity could lead to rapid capital inflows into emerging markets including South Korea and China and push up global raw-material prices." The latest round of easing by the U.S. will increase inflationary pressures for emerging-market economies, Mr. Chen said. "This contributes to a monetary-policy dilemma for Chinese authorities", he added. While markets have looked for signs of more forceful action by China's leaders to rekindle growth, some officials attribute the government's caution to fears of reigniting inflation. This confirms previous comments by the PBoC that "A domestic policy may be optimal for the U.S. alone. However at the same time it is not necessarily optimal for the world," he said at the time. "There is a conflict between the U.S. dollar's domestic role and its international settlement role."
Desperate North Korea has exported more than 2 tons to gold hungry China over the past year to earn US $100 million. Even in tough times during the Kim Il-sung and Kim Jong-il regimes, North Korea refused to let go of its precious gold reserves. Chosun media reports that “a mysterious agency known as Room 39, which manages Kim Jong-un's money, and the People's Armed Forces are spearheading exports of gold, said an informed source in China. "They are selling not only gold that was produced since December last year, when Kim Jong-un came to power, but also gold from the country's reserves and bought from its people." This is a sign of the desperation of the North Korean regime and also signals China’s intent to vastly increase the People’s Bank of China’s gold reserves.
There are 3 solid rules to follow and understand when buying gold and silver bullion and or mining stocks. Here they are.
While we await the release of pictures for today's caption contest, namely Merkel and Samaras hugging it out, which incidentally will be today's top news, as the Greek PM enters the lioness' den and begs for more, only to hear Merkel recite Herman Cain's tax plan, here is another picture: it is of "America’s Next Top Model" contestant and MTV anchor Kim Stolz, who was just hired away by Citigroup from BTIG to be a VP in equity-derivative sales, according to Bloomberg’s Donal Griffin. This is a welcome development: with trading volumes at levels last seen in 1998, more and more banks will resort to hiring underemployed supermodels to incite their clients to transact with them (for all the obvious and not so obvious reasons). It also means that said supermodels will soon know all there is to know about delta, gamma, vega and theta. Which naturally sets the stage for Zoolander 2 and the latest and greatest face name: step aside "Blue Steel", enter "The Schwab Baby" - a look describing what happens when that massive short gamma position suddenly blows up in your face. At least the next round of Congressional hearings, when banks scapegoat the next bailout request on supermodels selling VIX, will be somewhat more attractive. Win win for everyone.
JS Kim of SmartKnowledgeU Discusses the Politics of the Banker Gold & Silver Price Management Game on Press TVSubmitted by smartknowledgeu on 08/21/2012 06:07 -0400
JS Kim of SmartKnowledgeU discusses the politics of the banker gold and silver price management game with Max Keiser.
With Gold & Silver, Why Does the General Population Consistently Get the “Buy Low, Sell High” Mantra Backwards?Submitted by smartknowledgeu on 08/16/2012 07:14 -0400
The reasons why interest is so incredibly low in buying gold and silver among the general masses when they are screaming bargains, and why the general populace’s interest in PMs only perk up after prices have moved much higher, or worse yet, never at all, is a testament to the disinformation campaign waged by the bankers against the people.
Human nature hasn’t changed in centuries. We have faith that humanity has progressed, but the facts prove otherwise. We are a species susceptible to the passions of power, greed, delusion, and an inflated sense of our own intellectual superiority. And we still like to kill each other in the name of country and honor. There is nothing progressive about crashing the worldwide economic system and invading countries for “our” oil. History has taught that there will forever be manias, bubbles and the subsequent busts, but how those in power deal with these episodes has been and will be the determining factor in the future of our economic system and country. Humanity is deeply flawed; the average human life is around 80 years; men of stature, wealth, over-confidence in their superior intellect, and egotistical desire to leave their mark on history, always rise to power in government and the business world; this is why history follows a cyclical path and the myth of human progress is just a fallacy.
When it comes to building wealth, muddying the difference between perception and reality is the key manipulation tool that banksters use to goad people into wrong choices.
- ECB's Nowotny - ESM banking license could be advantageous (Reuters) - just keep regurgitating headlines until they generate a short squeeze
- IMF Says China Downside Risks Significant as Growth Slows (Bloomberg)
- Moody's cuts outlook on EU stability facility to negative (Reuters)
- Rome places spending controls on Sicily (FT)
- Big banks' glory days feared to be gone for good (Reuters)
- China's CNOOC scoped Nexen, partnered, then pounced (Reuters)
- Germany backs Spanish austerity plans (FT)
- Are 2012 Games one too many for London? (Reuters)
- Euro Crisis Spreading East Damps Growth, Development Bank Says (Bloomberg)
- Japan Flags Yen-Sales Impact as BOJ Eyes More Easing (Bloomberg)
There is one personality trait that no gold and silver investor should ever be without.
- Gunman kills 14 in Denver shooting at "Batman" movie (Reuters)
- Full retard meets Math for Retards: Spain Insists $15 Billion Aid Need for Regions Won’t Swell Debt (Bloomberg)
- World braced for new food crisis (FT)
- Banks in Libor probe consider group settlement (Reuters)
- U.S. banks haunted by mortgage demons that won't go away (Reuters)
- Ireland Bulldozes Ghost Estate in Life After Real Estate Bubble (Bloomberg)
- China will not relax property control policies (China Daily)
- Russia, China veto U.N. Security Council resolution on Syria (Reuters)
- Kim to reform North Korean economy after purge (Reuters)
Swiss Minister of Defense speaks up while Merkel joins the Axis of Evil