Baltic Dry Index. 1070 -18
LIR Gold Target in 2019: $30,000. Revised due to QE programs.
''Money
has no country.''
Christina
Stead. House of All Nations. 1938.
No update tomorrow due to early travel commitments.
With Pax-Americana in full retreat, as President
Obama golfs away the summer of 2014 and the American War Party does its best to
start World War Three in the Ukraine, China seems to be pushing the envelope in
the East China and South China Seas. Probing reaction times, monitoring
telemetry, and testing its neighbours and Uncle Scam’s responses.
While our world from Libya through the Levant out
to Afghanistan, down to Mali, South Sudan, Kenya, Chad, parts of Northern
Nigeria and Cameroon, come under fanatical Nazi moslem racist murderous terror,
the west’s voodoo economic policies of ZIRP and QE Forever, still have the
largest financial displacement ever underway into global stocks. Moslem Nazis
steal 400 Christian girls into Islamic slavery, buy more stocks. Egypt and UAE bombing Tripoli Libya, buy more stocks. Uncivil wars raging in the
Ukraine, Syria, Iraq, buy more stocks. One third of the Warsaw Ghetto on the
Med levelled, displacing many thousands but with no place to flee, buy more
stocks. Continental Europe heading into
a depression even before the blowback from Russian sanctions hits, buy more
stocks. Burger King to buy Hortons and
seek tax asylum in Canada, buy more stocks.
Our financial world of Great Vampire Squids and
banksters, has never been more disconnected from our new global reality. I strongly
suspect that we are approaching a world changing tipping point. Stay long fully
paid up physical precious metals. We have reached peak paper, I think.
Taiwan Fighters Chase China Jets a Week After U.S. Incident
Aug 27, 2014 5:08 AM GMT
Taiwan sent fighter jets to tail
two Chinese military planes that entered the island’s air space, a week after a
close encounter between a U.S. and Chinese jet.
“We responded immediately, asking
them to leave,” Taiwan defense minister Yen Ming said yesterday in Taipei.
Fighter jets were dispatched to warn the Chinese surveillance aircraft, each of
which entered Taiwan airspace twice yesterday, to leave, David Lo, spokesman
for the Ministry of National Defense, said by phone today.
Tensions remain between China and
Taiwan even as economic relations have strengthened since Taiwan President Ma
Ying-jeou took office in 2008. The two sides have been governed separately
since China’s Nationalist government fled across the Taiwan Strait to the
island during a civil war with Communist forces. China still claims Taiwan as part
of its territory and has indicated it will take it back by force if necessary.
As China increases its economic
and military muscle, encounters with other nations’ militaries have been on the
rise. U.S. aircraft had at least two previous run-ins with Chinese jets this
year prior to last week’s encounter, and Japanese and Chinese planes and ships
regularly tail one another around disputed islands in the East China Sea.
----On Aug. 19, a Chinese fighter jet in
international waters flew within 20 feet of a U.S. Navy surveillance aircraft
and did a barrel roll over it in what the White House called a provocation. The
U.S. plane, a Boeing P-8 Poseidon submarine surveillance aircraft, was flying
135 miles (217 kilometers) east of Hainan Island, China’s main submarine base.
More
Up next, the
war between the paper billionaires over Argentina, is about to pit English Law
versus US law, well N.Y. State law anyway. Well at least the lawyers will make
out like Great Vampire Squids. Don’t you just love it when amoral billionaires
fall out.
If all the rich men
in the world divided up their money amongst themselves, there wouldn't be
enough to go round.
Jules Bertillon. House
of all Nations 1938
Soros’s Argentine Bond Bet Revealed in Lawsuit in London
Aug 26, 2014 10:18 PM GMT
Less than a month after Argentina defaulted for the second time in 13 years, George Soros
has suddenly emerged as a key rival of fellow billionaire Paul Singer
in the legal fight over the nation’s debt. According to court documents filed in London last week, Quantum Partners LP, a fund managed by Soros’s family office, has joined a group of investors suing bond trustee Bank of New York Mellon Corp. for failing to distribute 226 million euros ($298 million) of interest payments on Argentine debt. The group, which also includes Kyle Bass’s Hayman Capital Management LP, owns more than 1.3 billion of euro-denominated bonds, court documents obtained by Bloomberg News show.
At the crux of the dispute is a U.S. court ruling won by Singer’s Elliott Management Corp., which blocked Argentina from paying its overseas bonds until the country compensates him and other holders of debt from its 2001 default. While the ruling prevents BNY Mellon from transferring any money deposited by Argentina until Singer is paid, it shouldn’t apply to bonds governed by jurisdictions outside of the U.S., the group says.
“The trustee isn’t acting in its official capacity as trustee,” Bass said in a telephone interview from New York. “Our interest payment is governed by U.K. law, which hasn’t ruled on this. Until there’s a similar injunction in the U.K., they owe us our interest payments.”
----Singer, who also sued the governments of Peru and the Republic of Congo after they reneged on their obligations, bought Argentine bonds before its $95 billion default in 2001.
After a more than decade-long legal pursuit for full repayment, Singer and other creditors who refused to accept losses of 70 percent to provide Argentina debt relief are now owed $1.5 billion as of result of the U.S. court orders.
More
In the land of the police cowed, trembling between
the shinning seas, awkward news on the great real estate recovery. All might
not be quite what it’s spun. Not to worry though, buy more stocks. The best
part of being in a bubble, according fallen former guru “Bubbles” Greenspan, is
that you can’t see them. At least, not if you’re on a team that’s paid not to
see them.
''People
who don't like scandals shouldn't be in finance.''
Jules Bertillon. House
of all Nations 1938
This house market is falling apart
Published: Aug 26, 2014 2:29 p.m. ET
Housing recovery is
an illusion, real estate expert says
Most real estate experts believe the U.S. housing market is roaring back. Few have anything to negative to say about real estate. But what if they’re wrong?
Real estate analyst Keith Jurow, author of the Capital Preservation Real Estate Report, is warning that the real estate market is not as strong as it seems. Says Jurow: “I never bought into the idea that we had a recovery at all.” His research leads him to conclude that home prices will be heading lower.
Why? Largely because home
listings are going up but sale prices are not. Jurow discovered that as of June
2014, listings in Ft. Lauderdale increased by 89.3% year-over-year. In Miami,
listings are up by 65.7% In Charlotte, N.C. they are up 51%, and in Riverside,
Calif. they’re up 28.1%. In 10 major metro areas around the country, listings
have increased. Jurow gets his data from Redfin.com and Raveis.com.
“Many people waited for prices to
rise before putting their house on the market, and they have,” Jurow says. “But
now listings are increasing because everyone has the same idea. Unfortunately,
May and June are traditionally the strongest months for sales, and these home
sellers have missed the peak season.”
Jurow points out that
Redfin.com’s latest figures show that in 21 out of 29 major metro areas, sales
volume is down year-over-year. “If sales are weakening and listings are going
up substantially, prices will fall,” he says.
The problems in housing are much
deeper than many people realize, Jurow contends. Another nagging concern is the
large number of homeowners who are delinquent. “Delinquent means you haven’t
paid the mortgage,” Jurow says. “The lender or servicer can file an official
notice of default, which begins the foreclosure proceeding.” However, to keep
prices from falling further, mortgage servicers have sharply reduced the number
of homes placed into default.
More
In the continent made for tanks, Europe’s Bilderberger depression looks
like being a long one. Whose idea was it to rile up the Russian bear, by trying
to steal the most corrupt European nation on the planet to slice and dice up
Russia. How come no US or UK companies get forced to pay to play in this ill
thought out game? More fool continental Europe’s politicians for getting into
bed with America’s War Party.
Europe will be Russia's hostage over gas supplies for at least another decade
Policymakers will have no choice but to continue buying gas from Russia until at least the mid-2020s and "potentially much longer", according to Fitch
Europe will remain heavily
reliant on Russian gas for at least another decade, according to a leading
rating agency.
Fitch said a lack of alternative
sources meant policymakers would have no choice but to continue buying gas from
Russia until at least the mid-2020s and "potentially much longer".
Europe already buys a quarter of
its gas from Russia, and analysts expect consumption to increase by a third by
2030 as economies recover from the debt crisis and gas-fired electricity
generation replaces old coal and nuclear power.
Analysts said it would be
difficult for countries to secure alternative sources of supply in the medium
term, leaving them at risk of being "held hostage by dominant
suppliers", including Russia.
"Any attempt to improve
energy security by reducing European reliance on Russia would require either a
significant reduction in overall gas demand or a big increase in alternative
sources of supply, but neither of these appears likely," Fitch said in a
report on Tuesday.
---- Finland, the
Czech Republic and much of eastern Europe rely heavily on Russia for gas, while
Germany imports a substantial amount from Russia. Fitch said overhauling
Europe's current infrastructure and making the network more resilient to shocks
would cost around €200bn (£160bn). Although around half of this can be funded
by capital markets, there is a risk that consumers may also be forced to pay
for the upgrade through higher energy bills.
---- Analysts also
highlighted Russia's dominant role across the energy market. "Even if
coal-fired and nuclear energy were favoured over gas, the impact on energy
security would be limited because Russia also supplies 26pc of the EU's hard
coal and is the sole supplier of fuel rods to nuclear power plants in several countries,"
it said.
---- The rating
agency also cast doubt over an American-style shale gas revolution in Europe.
"We do not expect meaningful shale production for at least a decade by
which time it could at best offset the decline of conventional gas
production," it said.
More
A bank is a
confidence trick. If you put up the right signs, the wizards of finance
themselves will come in and ask you to take their money
Jules Bertillon. House
of all Nations 1938
At the Comex silver depositories Tuesday final figures were: Registered 59.99 Moz,
Eligible 119.20 Moz, Total 179.19 Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
With some of the most polluted air on the planet,
thanks to burning coal to produce electricity, and an explosion of internal
combustion engine petrol cars and diesel trucks, China looks like it’s about to
get serious about cleaning up its air quality in the decades ahead. Diesel pollution
in particular increases the chance of heart disease and strokes in the big
cities. China appears to be about to make a big bet on the future of electric
vehicles (EVs.)
China Said to Consider $16 Billion EV-Charging Fund
Aug 27, 2014 4:10 AM GMT
China is considering providing as much as 100 billion yuan ($16 billion)
in government funding to build electric-vehicle charging facilities and spur
demand for clean cars, according to two people familiar with the matter. The policy will be announced soon, said the people, who asked not to be named because the discussions are private. The people declined to provide further details of the plan such as how long the program would last or whether the chargers would be compatible with cars made by Tesla Motors Inc. (TSLA)
Increased state funding would be a tailwind for carmakers coping with consumer concerns over the price, reliability and convenience of electric vehicles. It would also build on the tax breaks announced by China, the world’s biggest carbon emitter, to fight pollution and cultivate its local EV industry, which includes BYD Co. (1211) and Kandi Technologies Group Inc. (KNDI)
“Charging infrastructure and EV growth is a chicken-and-egg situation,” said Ashvin Chotai, managing director of researcher Intelligence Automotive Asia. “It’s got to be a gradual process to scale up both EV sales as well as charging infrastructure. EVs are still not very attractive when compared with conventional-powered cars.”
----Among recent government initiatives, China will exempt new-energy vehicles -- defined as electric cars, plug-in hybrids and fuel-cell vehicles -- from a purchase tax starting next month, and has ordered government departments to buy such vehicles for their official fleets.
More
From the Orwellian
thoughts of Chairman Salmond:
“All Scots are equal, but some Scots are more equal than others.”
The monthly Coppock Indicators finished July.
DJIA: +157 Down. NASDAQ: +318 Down. SP500: +232 Down. The Fed’s final bubble has taken on a
very scary wobble, but this is nothing compared to the return of real interest
rates at some point ahead.
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