Baltic Dry Index. 1179 +08.
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
“The problem with fiat money is that it rewards the minority that can handle money, but fools the generation that has worked and saved money.”
“Adam Smith” aka George Goodman.
With the unloved EMU dying and acting as a wealth
destroying mechanism rather than the wealth creating mechanism that was
promised by the Bilderbergers who falsely promoted it, and with the dead hand
of the European Union strangling Europe,
generating a lost youth generation consigned to the scrap heap of relative poverty and wealth exclusion, it was always
likely that eventually continental Europe would turn against the Euro and the
EU. Now it seems that even France is joining Italy and revolting against Germania.
Latin Europe is not now and never will become model modern Germans. Latin
Europe will always need its own currency mechanism in order to stay competitive
especially in manufacturing, which tends to provide mass employment. Stay long
physical gold and silver. The Latin populations finally seem to have belatedly
wised up to leaving the Germanic euro, even if their mainstream politicians are
still in deep denial.
With China already tightening and America about to
try to cut back on its monthly QE programs, the rest of 2013 and the
winter/spring of 2014 will likely see the death on the unloved euro as we know
it. The euro simply isn’t working for most of the Eurozone using it. It’s not
even working for Holland anymore, that’s the nation not the old socialist busy
wrecking the once great Gaullist nation of France.
"Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood.
For these few gold has been the asset of last resort."
Antony C. Sutton
Eurozone unemployment hits fresh high
Jobless
rate reached 12.1% across the region in May, with youth unemployment nearing
24%
Monday 1 July 2013 11.52 BST
The unemployment rate across the eurozone hit a fresh record in May, as the
recession continued to affect workers around the region and young people again
suffered most.The eurozone jobless rate rose to 12.1% in May, up from 12.0% in April, according to EU statistics office Eurostat. The youth unemployment rate was almost double that, at 23.8%, as 3.5 million under-25s were unemployed in May. In Spain and Greece the youth unemployment rate was as high as one in two.
The rise in unemployment was driven by increased joblessness in countries at the heart of the crisis, including Spain, Italy and Ireland. As the eurozone languishes in its longest-ever recession, the number of people out of work across the currency bloc rose by 67,000 in May to 19.2 million.
Seventeen members of the eurozone have higher unemployment rates than a year ago, and 10 have lower rates.
More
France's triumphant 'Joan of Arc' vows to bring back franc and destroy euro
Marine Le Pen is spoiling for a fight. The leader of France's Front National vows to smash the existing order of Europe and force the break-up of monetary union, if she wins the next election.
It is no longer an implausible prospect. "We cannot be seduced," she said, brimming with confidence after her party secured 46pc of the vote in a by-election earthquake a week ago. Her candidate trounced the ruling Socialists in their own bastion of Villeneuve-sur-Lot."The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?" she told the Daily Telegraph at the Front National's headquarters, an unmarked building tucked away in the Paris suburb of Nanterre. Her office is small and workaday, almost austere.
"Europe is just a great bluff. One side there is the immense power of sovereign peoples, and on the other side are a few technocrats," she said.
For the first time, the Front National is running level with the two governing parties of post-War France, Socialists and Gaullistes. All are near 21pc in national polls, though the Front alone has the wind in its sails.
Yet it is the detail in the Villeneuve vote that has shocked the political class. The Front scored highest in the most Socialist cantons, a sign that it may be breaking out of its Right-wing enclaves to become the mass movement of the white working class.
Commentators have begun to talk of "Left-LePenism" as she outflanks the Socialists with attacks on banks and cross-border capitalism. Anna Rosso-Roig, a candidate for the Communist Party in the 2012 elections, has just defected to the Le Pen camp.
The Socialists had thought the rising star of Marine Le Pen would work to their advantage, splitting the Right. Now they discern a deadly threat. Industry minister Arnaud Montebourg lashed out last week, blaming Brussels for playing into the hands of the Front National by running roughshod over democracies and pushing austerity a l'outrance.
More
In Asian news, just as the Fed has signalled it is
about to try to reduce the amount of its monthly QE programs, China has
signalled that it too is willing to take on the risk of slower growth in an
effort to rein in the shadow banking system. But if the big two locomotives of
the global economy are about to downshift speed, and Europe’s locomotive is
already in reverse, the second half of 2013 looks set to be a period of a
brutal reconnection to reality for most markets. In H2 13, stocks and bonds are the new gold,
while gold itself becomes the new stocks.
Golden Era Fades for China’s Banks as Crunch Raises Default Risk
By Bloomberg News - Jul 2, 2013 2:05 AM GMT
Chinese banks’ valuations are close to their lowest on record as the
nation’s interbank funding crisis exacerbated investors’ concern that earnings
growth will stall and defaults may surge as the economy slows. Industrial & Commercial Bank of China Ltd., the world’s largest lender by market value, ended Hong Kong trading last week at 5.3 times estimated earnings, data compiled by Bloomberg show. The Beijing-based bank may report profit of $41 billion for 2013, according to the average of 17 analysts’ estimates. Wells Fargo & Co. (WFC), with net income forecast at $20 billion, trades at 11 times earnings
Investors’ disenchantment with Chinese banks reflects concern that a crackdown on shadow banking and measures to direct new credit away from repaying old loans and toward boosting economic productivity will undermine earnings and trigger a surge of bad loans. President Xi Jinping also signaled last week that China’s new leaders will tolerate slower growth.
“The golden era of banking is over,” said Mike Werner, an analyst at Sanford C. Bernstein & Co. in Hong Kong who recommends clients buy shares of ICBC and divest mid-sized Chinese lenders. “Investors have to recognize that more market discipline is going to be imposed upon the banks.
More
Chinese Malls Waive Rents as Vacancies Loom: Real Estate
By Bloomberg News - Jul 1, 2013 5:01 PM GMT
Chinese landlords are forgoing rent and paying to outfit stores for
mass-market fashion brands including Zara and H&M, a bid to
blunt the impact of a boom in shopping-mall construction that threatens to push
up vacancies. Preferential leasing terms were reserved until recently for luxury brands such as Louis Vuitton and Gucci, which are coveted because they bring shoppers into malls. Now moderately priced labels are being enticed with offers as landlords work harder to fill shops, according to Cushman & Wakefield Inc. and RET Property Consultancy Ltd
Consumer demand is cooling as China’s economy slows and President Xi Jinping reins in lavish spending by officials. Big mall operators, including China Resources Land Ltd. (1109) and Hang Lung Properties Ltd. (101), can withstand the slowdown at the expense of smaller ones such as Golden Eagle Retail Group Ltd. (3308), according to Credit Suisse Group AG and Haitong International Securities Ltd. Landlords focused on lower-tier markets will be under more pressure as smaller cities add retail space at a faster rate than larger ones.
More
Monday, July 1, 2013
DJ: Domestic Auto Sales Down 15.8% On Year In June
TOKYO--Japan's domestic sales of new cars, trucks and buses declined 15.8% from a year earlier in June for the second consecutive month, the Japan Automobile Dealers Association said Monday.Sales totaled 266,913 vehicles in June, the association said.
Auto sales, as measured by registrations of vehicles with the government, are monitored by economists since they are the first consumer spending numbers released each month.
The latest figures continue this year's downward trend as sales have flagged after the government subsidies on eco-friendly cars expired in September. The association said that sales for the first half of this year are so far 11.6% off from a year earlier. While the association partly attributed the particularly sharp drop last month to the fewer number of selling days, it said it also reflects the "ongoing severe" situation in the domestic market.
Of Japan's Big Three auto makers, Honda Motor Co. suffered the steepest percentage fall in sales in June with a drop of 40.7% to 26,757 vehicles, followed by Toyota Motor Corp. which logged a 18.3% decline in sales to 121,514 vehicles. Nissan Motor Co. posted a 12.4% drop to 37,309 vehicles.
More
Next it’s the international banksters again. They can resist anything except temptation. In this new developing scandal, 13 of the world’s largest investment banks are accused of colluding “to prevent the lucrative global business of trading credit derivatives from moving onto regulated exchanges and away from markets controlled by the banks.” That way they could control the flow of information reaching the public and control CDS pricing by keeping CDS off regulated and public exchanges.
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
J. Edgar Hoover
July 1, 2013, 1:52 p.m. ET
EU Charges Banks Over Derivatives Trading
Preliminary Charges Say Banks Colluded to Keep Credit-Default Swaps Away From Regulated Exchanges
BRUSSELS—European antitrust authorities charged 13 of the world's largest investment banks on Monday with colluding to prevent the lucrative global business of trading credit derivatives from moving onto regulated exchanges and away from markets controlled by the banks.The charges against the banks are another black eye for the multitrillion-dollar market for credit-default swaps, the derivatives that act as insurance against a debt default by a company or a government. These derivatives were blamed for accelerating the spread of the financial crisis after the collapse of Lehman Brothers Inc. in 2008 by allowing banks and other financial institutions to take on huge risks with little oversight from regulators.
Now, European authorities say the banks, including Goldman Sachs Group Inc., GS +0.33% J.P. Morgan Chase JPM -0.57% & Co., and Deutsche Bank AG, DBK.XE +0.73% conspired to prevent trading from moving onto potentially less risky, more-transparent platforms, where their profits would be significantly lower.
Before the financial crisis erupted, trading CDS became a source of big profits for financial institutions. The banks controlled the data that allowed the market to function and conducted trades "over the counter," in direct transactions among one another, in ways that bolstered profits and prevented other firms from entering the market, European Union authorities said.
The Lehman bankruptcy "has shown how this mechanism of over-the-counter negotiations of derivatives, and in particular credit default swaps, is capable of destabilizing the entire financial system," EU antitrust chief Joaquín Almunia said Monday.
More
We end for the day with France opting for the nuke
option in response to US spying on the Elysee Palace.
Take that Uncle Sam you pervert!
Marianne. French heroine.
Singer Carla Bruni to tour France, U.S. to promote new album
(Reuters) - Singer-songwriter Carla Bruni, France's former first lady, says she
doesn't miss political life, isn't afraid of getting old and is looking forward
to touring in France and the United States
to promote her latest album, "Little French Songs."
More.
The history of paper money is an account of abuse, mismanagement, and financial disaster."
Richard M. Ebeling
At the Comex silver depositories Monday final figures were: Registered 42.87 Moz,
Eligible 123.24 Moz, Total 166.11 Moz.
Crooks and
Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
It may be high summer in the northern hemisphere
but the outlook is Snow, Snow, and yet more Snow. Officially poor whistle-blower
Snowy is trapped in the international transit section of Moscow’s Sheremetyevo
airport. With the NSA, CIA, FBI, and the Obama-Nixon-Bush administration mad at
him, Russia’s FSB better have him in some kind of protective custody. It’s all
too easy for America’s criminal class to hire some Chechen to fly in and slip
some Russian polonium into his tea. We all know who gets the blame if that
happens. With all of the muscle Obama is throwing around behind the scenes in
his effort to shoot the messenger, poor Snowy seems destined to end up being
granted asylum by the Taliban. Not so
poor old Barry Hussein’s Presidency is likely to go down in history forever
tied to deceit, persecution, and lies. Presidents Putin and Xi Jinping,
probably can’t believe their luck.
Meanwhile in the EU joke of the week, “Jose Manuel Barroso, president of the EU's executive Commission, "has instructed the competent Commission services to proceed to a comprehensive ... security sweep and check," Commission spokeswoman Pia Ahrenkilde Hansen told reporters.” If they had any “competent Commission services” able to conduct a “comprehensive security sweep and check,” they wouldn’t have first found out that they were spied on by poor old whistle blower Snowy. This is all too funny for words. All we need is an appearance by Kris Kringle next.
“Yes we can get you, and will.”
President Barry Milhouse Obama.
Snowden threatens new U.S. leaks, asks numerous countries for asylum
LONDON/MOSCOW |(Reuters) - Former U.S. spy agency contractor Edward Snowden broke his silence on Monday for the first time since fleeing to Moscow over a week ago, blasting the Obama administration and saying he remained free to make new disclosures about U.S. spying activity.
Snowden, who faces espionage charges in the United States and is believed to be staying in a transit area at Moscow's Sheremetyevo airport, surfaced with a letter to the Ecuadorean government and in a statement released through anti-secrecy group WikiLeaks, which has taken up his cause.
WikiLeaks also released another statement saying Snowden was asking for asylum in several countries, including Russia, China, Brazil, India and Ireland. Ecuadorean President Rafael Correa was quoted in Britain's Guardian newspaper as saying his country could not consider an asylum request unless Snowden was on Ecuadorean territory.
In his WikiLeaks statement, Snowden accused the Obama administration of deception in a campaign to prevent him from finding political asylum and of "leaving me a stateless person" by revoking his U.S. passport.
---- "I remain free and able to publish information that serves the public interest," Snowden, who had been a contract employee for the U.S. National Security Agency, said in the letter.
"No matter how many more days my life contains, I remain dedicated to the fight for justice in this unequal world. If any of those days ahead realize a contribution to the common good, the world will have the principles of Ecuador to thank."
But in an interview published on the Guardians website on Monday, Correa said giving Snowden a temporary travel pass to fly to Moscow was "a mistake on our part" and that Snowden was now Russia's problem.
More
Washington Post releases four new slides from NSA's Prism presentation
Newly published top-secret documents detail how NSA interfaces with tech giants such as Google, Apple and Microsoft
Sunday 30 June 2013 15.59 BST
The Washington Post has
released four previously unpublished slides from the NSA's PowerPoint presentation on Prism, the top-secret
programme that collects data on foreign surveillance targets from
the systems of nine participating internet companies.The newly published top-secret documents, which the newspaper has released with some redactions, give further details of how Prism interfaces with the nine companies, which include such giants as Google, Microsoft and Apple. According to annotations to the slides by the Washington Post, the new material shows how the FBI "deploys government equipment on private company property to retrieve matching information from a participating company, such as Microsoft or Yahoo and pass it without further review to the NSA".
The new slides underline the scale of the Prism operation, recording that on 5 April there were 117,675 active surveillance targets in the programme's database. They also explain Prism's ability to gather real-time information on live voice, text, email or internet chat services, as well as to analyse stored data.
----The
new slides show how Prism interfaces with the internet companies as government
agents track a new surveillance target. The process begins, one annotated slide
suggests, when an NSA supervisor signs off on search terms – called
"selectors" – used for each target. Analysts are tasked with ensuring
that the target is by "reasonable belief" of at least 51% confidence
likely to be a foreign national who is not within the US at the time of data
collection. The internal NSA supervision is the only check of the analysts'
determination; a further layer of supervision is added with stored
communications, where the FBI checks against its own database to filter out
known Americans.
There is
also broad authorization by federal judges in the secret Foreign Intelligence
Surveillance Court, which the new slides refer to as "Special FISA
Oversight and Processing". But this is of a generic nature and not made on
an individual warrant basis.
More
July 1, 2013, 5:56 p.m. ET
Spy Claims Send Chill Ahead of Trade Talks
France and Germany Demand Clarity on Claims U.S. Spied on EU
France and Germany demanded that Washington respond to reports that the National Security Agency spied on European institutions, in the latest diplomatic eruption to follow the revelations by rogue contractor Edward Snowden.French President François Hollande, abandoning the usual niceties of trans-Atlantic dialogue, told the U.S. to stop spying on European diplomatic outposts and suggested that coming free-trade talks between the EU and U.S. now hang in the balance.
"We demand that this stop immediately," Mr. Hollande said in remarks carried on French television. "There's enough evidence for us to ask for an explanation."
In Germany, a spokesman for Chancellor Angela Merkel said she would seek to speak to President Barack Obama "soon" about the allegations, adding that the report had caused "astonishment" in Berlin.
"We're not in the Cold War anymore," the spokesman, Steffen Seibert, said, adding that spying on friends wasn't appropriate. Separately, Germany's foreign ministry called for an explanation from the U.S. ambassador.
----The official expressions of anger in Paris and Berlin underscore the diplomatic morass the U.S. faces in the wake of Mr. Snowden's allegations.
Europeans were already up in arms over previous reports that the U.S. was closely monitoring Internet social media and email. Politicians across Europe assailed Washington over the latest alleged spying, tapping in to deep public distrust on the continent of U.S. intelligence agencies.
----Suggestions that the U.S. government may have been monitoring Europeans' telephone and email communications drew a particularly harsh response in Germany, which, due to its history of brutal dictatorship, has some of the strictest privacy statutes in the world.
More
EU orders security sweep after U.S. spying allegations
BRUSSELS |(Reuters) - The European Union said on Monday it had ordered a security sweep of EU buildings after reports that a U.S. spy agency had bugged EU offices in Belgium and the United States.
Jose Manuel Barroso, president of the EU's executive Commission, "has instructed the competent Commission services to proceed to a comprehensive ... security sweep and check," Commission spokeswoman Pia Ahrenkilde Hansen told reporters.
Mrs. Obama: Sometimes I wish I married a butcher or a plumber.
President Barry Hussein Obama : My dear, if I lose this Snowden hearing, you may very well get your wish.
With apologies to Kris Kringle and Miracle on 34th Street.
The monthly Coppock Indicators finished June:
DJIA: +145 Up. NASDAQ: +146 Up. SP500: +177 Unch The Fed’s
Final Bubble continues, but is struggling. The S&P500 moved sideways. The Dow and
Nasdaq both barely eked out a gain. In current highly volatile conditions and
controversial uncertain policy indecision at the Fed, Speculators would stay
long, investors would exit stocks for now or get fully hedged.
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