Baltic Dry Index. 962 +37
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
To taper, or not to taper. That is
the question.
Bernocchio, with apologies to Hamlet
pondering the meaning of life.
The big event of
the day is the outcome of the Fed’s two days of deliberations, pondering how to
end their dilemma of QE forever. Having
leaked to their favourite WSJ hack that they were about to taper or even end
altogether their money printing QE forever programs, the great vampire squids
said just you try and we’ll slam the stock and bond markets back into the
cellar. The stock market speculators know that they have the Fed trapped over a
barrel and they intend to make hay while the sun shines. The day will come when the roof falls in, as
the Fed knows all too well, but that day isn’t about to be today. Wall Street
has dictated that today the answer is “not to taper.” The no longer in charge
Fed will meekly comply. Ebenezer Squid has the Fed exactly where it wants them.
Old Ebenezer Squid had one-way
pockets. He would walk ten miles in the snow to chisel an orphan out of
tuppence.
With
apologies to P.G. Wodehouse and the Duke of Dunstable
Fed seen keeping options open on pace of bond buying
WASHINGTON |(Reuters) - Federal Reserve policymakers will likely announce on Wednesday that they will keep buying bonds at a monthly pace of $85 billion, while keeping their options open to scale back the program later this year if the U.S. labor market continues to improve.
Economic data since the 19 officials met in May has been mixed. Employment growth was steady and consumers kept spending despite the drag of tax hikes and government spending cuts. But inflation slowed further beneath the Fed's 2 percent target.
The policy-setting Federal Open Market Committee will announce its decision at 2 p.m. EDT Fed Chairman Ben Bernanke will hold a news conference 30 minutes later.
More
Thankfully at the
dress downright shabby G-8 summit that wound up yesterday, did you catch
Chancellor Merkel’s hand me down outfit, the leaders of the G-8 and their
hangers on from the EU, have solved all of the world’s major problems that
aren’t yet to be solved by The Bernank, and his incoming sidekick at the BOE,
the Great Canadian magician, Mark Carney. The world’s problems sorted and few
attending willing to use their phones or the internet chat rooms so
thoughtfully set up by Britain’s GCHQ and their NSA colleagues who run RAF
Menwith Hill, it was get out of Ireland fast time. President Obama moves on to
Berlin for a paler version of President Kennedy’s “I’m a Berliner” speech, but
sequels are never as good as the original. There seems to be no truth to the
Russian rumour that in light of the IRS scandal, and the spy on everyone
scandal, that President Obama has asked for German asylum.
This ailing continent needs newer and better politicians. But where could we find them? There is no sign of a European Obama or anything remotely like him.
Der Spiegel
In Chinese news,
if it wasn’t for bad news there’d be no news at all.
China Stocks Fall to a Six-Month Low Amid IPO, Property Concern
By Weiyi Lim - Jun 19, 2013 6:10 AM GMT
China’s
stocks fell to a six-month low amid speculation the government may
introduce more property curbs to contain rising prices and regulators are
considering resuming approvals of initial public offerings. China Vanke Co. and Poly Real Estate Co., the nation’s biggest developers, slid more than 2 percent after the China Securities Journal reported the government may soon expand property tax trials to more cities. Jiangxi Copper Co. and Yanzhou Coal Mining Co. led declines for metal and energy companies before a manufacturing report tomorrow. China will allow IPOs only after new rules aimed at boosting protection for investors go into effect, a China Securities Regulatory Commission official with knowledge of the matter said.
----The Shanghai Composite has slumped 13 percent from this year’s high on Feb. 6 on signs the nation’s economic slowdown is deepening and as rising money rates signal tighter liquidity. Trading volumes were 17 percent below the 30-day moving average.
More
China Swaps Surge as Cash Squeeze Sees Demand Wane at Debt Sale
By Bloomberg News - Jun 19, 2013 5:36 AM GMT
China’s one-year interest-rate swap rose by the most in 22 months as the
central bank refrained from adding funds to the financial system to ease a cash
squeeze, causing demand to fall at a government debt auction. The finance ministry’s sale of 30 billion yuan ($4.9 billion) of 10-year bonds today drew bids for 1.43 times the amount on offer, the least since August 2012. The People’s Bank of China asked lenders to submit orders for 14-day reverse-repurchase agreements and 28-day repurchase contracts this morning, according to a trader at a primary dealer required to bid at the auctions. The PBOC has refrained from using reverse repos, which inject funds, since Feb. 7.
“The cash shortage may get even worse before
the quarter-end because banks will have to hoard cash to meet loan-to-deposit
ratio requirements,” said Chen Qi, a strategist at UBS Securities Co. in Shanghai. “The central bank probably won’t
come out to intervene unless there is a sharp decline in economic growth and
large capital outflows.”
More
In Japanese news, trade
wars work for Japan’s exporters. Competitive currency devaluation to steal
other nation’s export markets is merely an unintended consequence of Abenomics
of course.
Japan Exports Surge Most Since 2010 in Boost for Abe: Economy
By Mio Coxon - Jun 19, 2013 4:19 AM GMT
Japan’s exports rose more
than forecast in May as a weaker yen boosted the value of overseas sales,
underscoring the profit boon for manufacturers from Prime Minister Shinzo Abe’s
reflation campaign. The value of shipments abroad increased 10 percent in May from a year earlier, the most since 2010 and exceeding the 6.4 percent median estimate in a Bloomberg News survey of economists, a Finance Ministry report showed in Tokyo. At the same time, export volume dropped 4.8 percent.
Today’s data reflect an almost 12 percent slide in the yen against the dollar in the past six months that stoked criticism from trade partners including South Korea that Japan’s monetary stimulus is distorting commerce. The key for Abe is that exporters from Nintendo Co. (7974) to Mazda Motor Corp. (7261) use profit gains to boost wages and investment at home.
“The yen’s exchange rate, even though it has been adjusted a bit recently, is still weaker than last year’s level and giving a lot of impetus for Japan’s export drive,” said Long Hanhua Wang, an economist at Royal Bank of Scotland Group Plc in Tokyo. “The volume of exports is still unimpressive as the economic growth of China is stagnating and Europe’s expansion remains weak.”
More
We close for today
with a warning on the distressing future from the CEO of Honeywell. Stay long physical gold and silver outside of
the banking system for the future. The retirement of the “baby boom”
generation will “literally crush
the system,” he thinks.
Who am I to disagree. Relatively well educated, they
are about to be replaced in the workforce by today’s dumbed down, socialist
indoctrinated, generation of spendthrift dunces. Even those graduating from
universities in the west, graduate saddled with unrepayable debt. The G-7’s “Grate
Leaders” have never held a real job, invented anything, nor started up a real
business employing people supporting families. They are all wrapped up
promoting homosexual “marriage,” as Rome burns. The terrible ending of the Great Nixonian Error
of fiat money is now at hand. Until the new Carbon Age of graphite and graphene
kicks in to reset the system, probably still about a decade away, we seem
doomed to repeat Japan’s lost generation.
"I
never think of the future. It comes soon enough."
Albert
Einstein.
Honeywell CEO: Boomer Retirement ‘Will Crush the System’
June 18, 2013, 3:32 AM ET By Maxwell Murphy
Retiring baby boomers will “literally crush the system,” so deficit
reduction must be addressed before the U.S. finds itself on the hook for $1
trillion a year in debt interest payments alone Honeywell
International Inc.Chairman and Chief Executive David Cote told an audience of chief financial officers on Monday evening.
Given “entitlements” like Medicare, “I was shocked by … how bad it would get over the next 10 years,” Mr. Cote said in a wide-ranging discussion at the third annual Wall Street Journal CFO Network conference in Washington, D.C. Mr. Cote, who in 2010 was named by President Obama to serve on the Simpson-Bowles Commission to help address the country’s deficit problems, said the U.S. can either deal with the problem now, “thoughtfully and proactively,” or it can wait until the debt load becomes crippling.
Mr. Cote said he is cautious about the global recovery, and said Honeywell is modeling for average inflation-adjusted gross-domestic-product growth of 2% annually in the U.S. over the next three years. It plans on no growth in Europe during that time, 4% a year in India and 6% to 7% yearly in China, he said, because it’s “not worth betting anything bigger.”
It’s “tough to see what a catalyst for growth [would look like],” he added.
More
"The
London Banker Henry Fauntleroy forged to keep his bank solvent. He was executed
for it in 1824."
Charles
P. Kindleberger, Manias, Panics and Crashes.
Bring
back the good old days.
Graeme.
At the Comex silver depositories Tuesday final figures were: Registered 41.76 Moz,
Eligible 122.23 Moz, Total 164.99 Moz.
Crooks and
Scoundrels Corner
The bent, the seriously bent, and the totally doubled
over.
Today, yes Mario Barroso, Herman Van Who, and Baroness Whatsit, we know
what you’re thinking, saying and emailing, plus a whole lot more like where you
shop, what you’re buying and why. And that goes for Hollande and Merkel too. Be
very deferential while King Barry the first is in Berlin.
"You
can get much farther with a kind word and a gun than you can with a kind word
alone."
King
Barry I, with apologies to Al Capone.
RAF Menwith Hill
RAF Menwith Hill is a Royal Air Force station near Harrogate, North Yorkshire, England which provides communications and intelligence support services to the United Kingdom and the United States of America. The site contains an extensive satellite ground station and is a communications intercept and missile warning site[1] and has been described as the largest electronic monitoring station in the world.[2]RAF Menwith Hill is commanded by a Royal Air Force Officer, supported by an RAF element, whilst the majority of support services are provided by the United States Air Force, 421st Air Base Group.
The site acts as a ground station for a number of satellites operated by the US National Reconnaissance Office,[3] on behalf of the US National Security Agency, with antennae contained in a large number of highly distinctive white radomes, and is alleged to be an element of the ECHELON system.[4]
More
ECHELON is a name used in global media and in popular culture to describe a signals intelligence (SIGINT) collection and analysis network operated on behalf of the five signatory states to the UKUSA Security Agreement[1] (Australia, Canada, New Zealand, the United Kingdom, and the United States, referred to by a number of abbreviations, including AUSCANNZUKUS[1] and Five Eyes).[2][3] It has also been described as the only software system which controls the download and dissemination of the intercept of commercial satellite trunk communications.[4]
ECHELON, according to information in the European Parliament document, "On the existence of a global system for the interception of private and commercial communications (ECHELON interception system)" was created to monitor the military and diplomatic communications of the Soviet Union and its Eastern Bloc allies during the Cold War in the early 1960s.[5]
The system has been reported in a number of public sources.[6] Its capabilities and political implications were investigated by a committee of the European Parliament during 2000 and 2001 with a report published in 2001,[5] and by author James Bamford in his books on the National Security Agency of the United States.[4] The European Parliament stated in its report that the term ECHELON is used in a number of contexts, but that the evidence presented indicates that it was the name for a signals intelligence collection system. The report concludes that, on the basis of information presented, ECHELON was capable of interception and content inspection of telephone calls, fax, e-mail and other data traffic globally through the interception of communication bearers including satellite transmission, public switched telephone networks (which once carried most Internet traffic) and microwave links.[5]
More
"Rarely
have so many people been so wrong about so much."
Richard
M. Nixon, 37th President of the United States of America.
The monthly Coppock Indicators finished May:
DJIA: +142 Up. NASDAQ: +144 Up. SP500: +177 Up. The Fed’s
Final Bubble continues. But hurricanes and tornadoes appear. Getting out first
beats getting out last.
No comments:
Post a Comment