Baltic Dry Index. 1239 -74 Brent Crude 76.49
LIR Gold Target in 2019: $30,000. Revised due to QE programs.
The real interest
rate is probably minus 2% in the world today. It should be in line with the per
capita income growth rate or 1%. The difference is 3%.
This environment
redistributes wealth from savers to debtors on a scale of over $2 trillion per
annum or $55 billion per day. This must be the biggest legal robbery ever in
human history. But it is always coded in arcane academic lingos spoken by
respected central bankers with impeccable CVs. All that is just packaging; it
is robbery nevertheless.
Andy Xie
We have arrived at Decision Day for crude oil. OPEC’s riggers and fixits
are meeting in Vienna to decide on the level of OPEC production heading into
2015. Will they cut production by about 2 million barrels a day, which is about
what it would take to move the oil price up from about $75 a barrel for Brent,
back towards $100, or will they leave production unchanged and risk a price
slump towards $60? At $60, European fracking is dead on arrival, while US
frackers and Canadian tar pits face another oil bust. Short Texas, the Dakotas,
Alberta, Brazil, Nigeria, Russia and Angola. Short Portugal too, as it will
lose two export destinations for its unemployed youth generation. Their
decision will likely be the big story of tomorrow.
We open today in holiday celebrating America, with yet another market
rigging bankster scandal unfolding. Like all good bankster scandals, this one
involves Goldie and mega bank HSBC. Both have form, as they say down at
Scotland Yard. In banksterland, in London at least, in my generation we have
gone from “my word is my bond” to sophisticated and unsophisticated theft on
biblical scale. But on the Great Nixonian Error of fiat money, why would anyone
expect honesty to prevail in our Great Financialised Casinos, aka markets. The
banksters, after all, are only following the dishonest lead of their mostly Goldmanite Central Banksters.
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
HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says
Nov 26, 2014 7:22 PM GMT
Goldman
Sachs Group Inc. (GS) and HSBC Holdings Plc (HSBA) were
sued in New
York over claims they conspired for eight years to manipulate prices
for the precious metals platinum and palladium in what plaintiffs’ lawyers say
is the first such class-action lawsuit in the U.S. Standard Bank Group Ltd. and a metals unit of BASF SE (BAS), the world’s largest chemical company, were also sued. The four companies used inside information about client purchases and sale orders to profit from price movements for the metals used in products ranging from jewelry to cars, according to a complaint filed yesterday in Manhattan federal court.
Modern Settings LLC, a jeweler that buys precious metals and derivatives set on their prices, claims the companies “were privy to and shared confidential, non-public information about client purchase and sale orders that allowed them to glean information about the direction” of prices.
Similar lawsuits have been filed this year in Manhattan accusing banks of rigging the benchmark price for gold. Authorities around the world are examining the gold market for signs of wrongdoing.
Regulators tightened scrutiny of benchmarks after uncovering price-rigging in interbank-loan rates and currencies. In August, the price-setting mechanism for silver became the first traditional procedure for a precious metal to be replaced, and Intercontinental Exchange Inc. (ICE) will run the replacement for the 95-year-old London gold fixing. A new mechanism for platinum and palladium is set to be in place Dec. 1.
More
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
J. Edgar Hoover
In other news. Past performance and all that, plus “this time it’s different.” Fiat currency anarchy has arrived, the logical consequence of a race to the bottom in our QE and ZIRP world of casino banksterism.
China Trading Boom That Marked End of Past Rallies Is Back
Nov 27, 2014 2:47 AM GMT
The surge in Chinese equity trading that coincided with market peaks in 2009 and
2010 is back again after the Shanghai Composite (SHCOMP)
Index jumped to a three-year high. The 30-day average daily value of shares changing hands on the Shanghai exchange exceeded 200 billion yuan ($32.6 billion) for the first time in four years on Nov. 25, after rising threefold in the past six months, according to data compiled by Bloomberg. Turnover last breached this level on Nov. 9, 2010, the same day the Shanghai Composite began its slide into a 38 percent bear market. The previous surge came on Aug. 7, 2009, two days after the start of a 23 percent retreat.
“It’s a good chance we’re at a market top right now,” David Cui, the China strategist at Bank of America Corp. (BAC) who’s ranked No. 1 by Institutional Investor magazine, said by phone yesterday. “Based on the experience since the global financial crisis, surging volumes each time marked a temporary top for the market.”
More
http://www.bloomberg.com/news/2014-11-26/china-trading-boom-that-marked-end-of-past-bull-markets-is-back.html
China Loosens Monetary Policy Further as PBOC Scraps Repo Sales
Nov 27, 2014 6:13 AM GMT
China’s
central bank refrained from selling repurchase agreements for the first time
since July, loosening monetary policy further as a report showed industrial
companies’ profits fell by the most in two years. The People’s Bank of China didn’t conduct any open-market operations in today’s auction window, after cutting interest rates last week for the first time since 2012. It last suspended sales of repos, which drain funds from the banking system, in the week of July 21 as initial public offerings boosted cash demand. Guotai Junan Securities Co. estimated such share sales tied up 1.6 trillion yuan ($261 billion) this week, while maturing repos injected a net 35 billion yuan.
China is headed for its slowest full-year economic expansion since 1990 amid a property slump, weakening industrial output and factory-gate deflation. There’s scope for further rate cuts or even a reduction in banks’ reserve requirements, said Liu Jiazhang, a strategist at Tianhong Asset Management Co., which manages the nation’s biggest money-market fund.
More
http://www.bloomberg.com/news/2014-11-27/pboc-refrains-from-selling-repos-for-the-first-time-since-july.html
Most Asian Stocks Retreat as Japan Falls on Yen, Oil Declines
Nov 27, 2014 12:09 AM GMT
Most Asian stocks fell as Japanese shares
retreated on a stronger yen and a drop in oil weighed on energy companies. About three shares declined for every two that gained on the MSCI Asia Pacific Index (MXAP), which was little changed at 141.34 as of 9:03 a.m. in Tokyo. The Standard & Poor’s 500 Index climbed 0.3 percent to a fresh record yesterday ahead of the Thanksgiving holiday as investors weighed economic data.
“In the medium-term, things are still moving positively in most economies, but growth is slower universally,” said Angus Gluskie, managing director at White Funds Management in Sydney, which oversees about $550 million. “You want to be in the markets, but you don’t expect a spectacular return.”
---- The Asia-Pacific measure rebounded 5.7 percent from an Oct. 17 low through yesterday as the Bank of Japan added stimulus, China cut interest rates and speculation grew the European Central Bank will take more stimulus measures.
U.S. consumer confidence climbed to a more than seven-year high in November as Americans’ views of their financial well-being improved heading into the holiday shopping season. A separate report showed consumer spending climbed in October at the same pace as incomes, showing households are staying within their means as the holiday-shopping season begins.
Orders for U.S. business equipment such as machinery and electrical gear unexpectedly declined in October. Other data showed jobless claims increased by 21,000 to 313,000 in the week ended Nov. 22, the highest since early September, from 292,000 in the prior period. New homes in the U.S. sold at a slower pace than forecast last month.
Oil futures closed at the lowest level in more than four years amid skepticism OPEC ministers will cut supply. A Bloomberg News survey showed 20 analysts were evenly divided on the decision by the Organization of Petroleum Exporting Countries.
More
http://www.bloomberg.com/news/2014-11-27/most-asian-stocks-retreat-as-japan-falls-on-yen-oil-declines.html
"God, no, we don't club baby seals. We club babies."
Goldmanite, quoted in The Times of London. November 8 2009
At the Comex silver
depositories Wednesday final figures were: Registered 64.28 Moz, Eligible 112.55
Moz, Total 176.83 Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
Below, more on GB headed for the EUSSR exit. Who
would want to remain in a Bilderberger lunatic asylum like this.
It’s morally wrong to let a [UK] sucker keep his money.
The EUSSR, with apologies to W. C. Fields.
UK faces £34bn bill for black hole in EU budget
EU accused of financial mismanagement after auditors find huge black hole in the Brussels budget
Bruno Waterfield in Brussels and
Peter Dominiczak 1:53PM GMT 26 Nov 2014
Auditors have identified a
blackhole in European Union budgets that could lead to extra demands for cash
from the British taxpayer of up to £34billion over the next six years.
David Cameron will be legally
obliged to make up a share of a shortfall of £259billion by 2020 with
liabilities for the Treasury estimated at £33.7bn, calculated at the usual rate
of Britain’s EU contributions.
The hole in EU spending has been
identified by the European Court of Auditors and represents a political
disaster for the Prime Minister who has made repeated pledges to bring down the
amount Britain pays into Brussels budgets.
“The EU’s ability to just grab
money from taxpayers whenever it wants is an outrage. It underlines what is
structurally wrong with our relationship under the existing treaties,"
said Bernard Jenkin MP, the chairman of the House of Commons public
administration select committee.
"The UK parliament should
decide how much we want to pay the EU not bureaucrats in Brussels."
In a special report earlier this week, EU auditors identified the sum in outstanding bills for legally binding spending commitments made by the European Commission over the last four years.
“Assuming that commitments will not be de-committed, and we don’t see how most of them could, it might be problematic to get this money from member states to finance the expenditure foreseen,” Igor Ludborzs, an EU auditor, told the Euractiv website.
“We don’t see a happy ending. The amounts are getting bigger and bigger.”
Eurosceptic Conservative MPs are "spitting with rage" at the prospect of increased EU contributions and a failure to control Brussels spending at a time when Britain is making cuts to balance the budget.
“The commission is out of control and needs to be brought back under control. This is a problem with having no real democratic check to the EU. The commission writes cheques without any balances," said Jacob Rees Mogg, Tory MP for North East Somerset and member of the Commons European scrutiny committee.
John Redwood, the Conservative MP for Wokingham, said: “We cannot go on like this, with the EU constantly sending new larger bills to the UK when we are desperately trying to control public spending and get our deficit down. For most British taxpayers we would start our cuts with European programmes rather than protecting them. The commission needs to learn to manage the budget."
More
Unless we change our ways and our direction, our greatness as a nation will soon be a footnote in the history books, a distant memory of an offshore island, lost in the mists of time like Camelot, remembered kindly for its noble past.
Margaret Thatcher.
The monthly Coppock Indicators finished October.
DJIA: +137 Down. NASDAQ: +275 Down. SP500: +210 Down.
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