Baltic Dry Index. 830 -25 Brent Crude 48.82
LIR Gold Target in 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.
Thanks to our central banksters rigging markets, the regulators looking
the other way as HFT algo thieves front run legitimate market orders from the
likes of pension funds and investment funds, and companies rigging their stock
higher by issuing debt to buy back stock, we have achieved dysfunctional
markets with little in the way of market reality, price discovery, capital
allocation, and ultimately capitalism.
In the final act of the Great Nixonian Error of fiat money, which went
bust in 2007-2009, we have giant mountains of fiat money careening from one
rent seeking speculation to another. All operating in a central bankster world
of rigged currency wars, as every nation under the sun tries to steal export
advantage from each other, or in Uncle Scam’s case, tries to protect the status
of the dollar reserve standard from the rise of any competitor, be it the
hopelessly flawed euro or the equally flawed Yuan.
Under the Great Nixonian Error of fiat money, we have reached the churn
and burn market economy. Cap-ex is being cut back as the Great Deflation surges
out of China. The next generation will eventually come to rue that. But first
we have a multi decade malinvestment era to correct. In short false wealth
destruction for the next few years.
We open with speculative churning in oil.
Oil rallies 4% to recoup losses from a day earlier
Published: Sept 10, 2015 3:37 p.m. ET
Oil futures on Thursday recouped losses from a day earlier as expectations
for further declines in U.S. production helped offset a bigger-than-expected
weekly increase in domestic crude supplies. Natural-gas prices also finished higher after separate data showed an increase in natural-gas inventories that was below market expectations.
October West Texas Intermediate crude CLV5, -0.46% tacked on $1.77, or 4%, to settle at $45.92 a barrel on the New York Mercantile Exchange after dropping $1.79, or 3.9%, a day earlier. Oil prices had pared some of their earlier gains in the wake of the supply data, before pushing toward session highs again.
Brent crude LCOV5, -0.12% rose $1.31, or 2.8%, to $48.89 a barrel on London’s ICE Futures exchange.
Nymex oil participated in a “broad-based risk-on rally, despite the negative numbers” released by the U.S. Energy Information Administration Thursday, said Tim Evans, chief market strategist at Long Leaf Trading Group. U.S. stocks were higher in volatile trading when Nymex prices settled.
----On Thursday, the EIA reported an increase of 2.6 million barrels in crude supplies for the week ended Sept. 4. Analysts polled by Platts forecast a crude-stock climb of 300,000 barrels, while the American Petroleum Institute Wednesday said supplies gained by 2.1 million barrels, according to sources.
“The build in oil inventories was surprising given a drop off in U.S. production,” said John Macaluso, an analyst at Tyche Capital Advisors.
More
Shale Producers Clobbered by Oil Rout Face Added Iran Supply
September 10, 2015 — 9:32 PM BST Updated on September 11, 2015 — 5:01 AM
BST
Shale oil producers already awash in a supply glut face added crude as
early as next year after an agreement to ease sanctions on Iran cleared a
Senate obstacle.
A Senate vote Thursday paved the way for President Barack Obama to ease
financial penalties for doing business with Iran. Democrats kept
Republicans’ disapproval resolution from advancing in a 58-42 procedural vote,
with 60 required. That may allow additional Iranian exports to hit the market
as early as the first quarter of 2016. New supplies will exacerbate a global
oversupply that sent oil tumbling by more than half in the past year, and add
to the woes of the cash-strapped shale industry.
“It’s more crude in a market that is already well supplied,” said Sarah
Emerson, managing director of ESAI Energy Inc., a consulting company in
Wakefield, Massachusetts. “It’s certainly not going to make things any better.”
The shale boom, which boosted U.S. production to the highest in about 40
years, helped offset the loss of Iranian exports after the U.S. and the
European Union imposed sanctions on the Islamic Republic’s oil sales in July
2012 in an effort to force the country to curtail its nuclear program.
At its lowest point, Iranian production fell by about 1 million barrels
a day, the equivalent of losing all the oil pumped from North Dakota, according
to data compiled by Bloomberg.
While there are varying estimates on just how much crude Iran can return
to the market, August output was 675,000 barrels a day lower than in December
2011. According to forecasts from the U.S. Energy Information Administration,
that will be almost double the production cuts by U.S. producers from now through
the next year.
More
U.S. stocks end modestly higher as rally loses steam
Published: Sept 10, 2015 4:31 p.m. ET
Apple shares jump 2.2%, recouping Wednesday’s losses
A solid rally in U.S. stocks ran out of momentum in the final two hours of the session, with the main indexes ending only modestly higher Thursday.A jump in oil prices helped lift the overall market, but uncertainty ahead of the Federal Reserve’s two-day policy meeting next week made for volatile trade and kept a lid on gains.
The S&P 500 SPX, +0.53% closed 10.25 points, or 0.5%, higher at 1,952.29. Technology and health-care stocks led the gains, while nine of the index’s 10 main sectors finished higher. The main benchmark is still down 5.2% year to date, however.
The Dow Jones Industrial Average DJIA, +0.47% gained 76.83 points, or 0.5%, to 16,330.40, with 23 out of the 30 blue-chip companies finishing in positive territory. The blue-chip index is down 7.3% from the start of the year.
The Nasdaq Composite COMP, +0.84% ended the day up 39.72 points, or 0.8%, at 4,796.25, while its biggest component, Apple Inc. AAPL, +2.20% jumped 2.6%. The tech-heavy index is up 1.3% year to date, having outperformed other main indexes.
“While we are seeing big swings in both directions, markets are not making a forward progress and that’s likely to continue over the next few months,” said Maris Ogg, president at Tower Bridge Advisors.
“We have a combination of further selling by mutual funds to cover taxes after big losses in parts of their portfolios and banks revaluing loans in the energy sector, both of those factors will keep the markets from rebounding for few months,” Ogg said.
More
We end on the Great Deflation with falling food prices. Good for
consumers at first, but like burning the furniture to stay warm in winter,
disastrous in the end.
UK farmers forced to borrow money as global food prices collapse
UN index shows global food prices in August falling at the fastest pace since 2008
Food prices have suffered their sharpest monthly fall in seven years, piling pressure on hard-pressed British farmers to increase borrowing and on supermarkets to pass on more savings to customers.The Food Price Index, collated by the Food and Agriculture Organisation of the United Nations, showed its steepest drop since 2008 last month and is now at a level not seen since 2010. The index tracks wholesale prices of key food commodities such as milk, wheat, cheese and meat.
The 5.2pc drop in the value of the index to 155.7 points in August was driven mainly by a global oversupply, lower energy prices and the collapse of demand from the Chinese economy, warned the UN authority.
Continuing collapsing food prices are bad news for British farmers, who are already struggling with a supermarket price war and changes to subsidy payments that could see many forced to increase their levels of borrowing this winter.
Lloyds Banking Group has already set up a £500m emergency fund to help struggling British farmers facing late subsidy payments under the new Common Agriculture Policy. The collapse in food prices will only add to the anxieties spreading across the agriculture industry.
----This
week the European Union was forced to dole out €500m (£363m) in emergency
funding for hard-pressed farmers across the continent who face being wiped out
by a collapse in the price of dairy produce and meat. The French government has
estimated that around 10pc of farms in the country with a combined debt of €1bn
now face bankruptcy this year.
More
"If you don't trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 - $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?"
Kenneth J. Gerbino
At the Comex silver depositories
Thursday final figures were: Registered 50.56 Moz, Eligible 115.40 Moz, Total
165.96 Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
No crooks today, just a reality check on Russian
oil production. Russia will not be coming to the rescue of America’s fracking
oil companies. Consolidation, restructuring and even bankruptcy for some lies
directly ahead, And Iran hasn’t even ramped up its oil production yet.
Why Vladimir Putin Won't Be Helping OPEC to Cut Oil Production
September 11, 2015 — 12:00 AM BST Updated on September 11, 2015 — 5:24
AM BST
Few things have more potential to spook the oil market than the prospect
of Russia joining forces with OPEC. Speculation that such a move was
afoot last month drove crude to its biggest three-day gain in 25
years.
Despite the market buzz, there are sound economic and technical reasons
why this is unlikely to happen.
“Russia and OPEC have talked about cooperation in cutting production
many times in the past, but the results of that were always dismal and
disappointing,” said Nordine Ait-Laoussine, president of
Geneva-based
consultant Nalcosa and former energy minister of Algeria. “Russia has assumed
that when oil prices go down, OPEC countries are in a weaker position and are
more likely to be the first to cut its production, and they always did.”
----Kremlin officials were quick to dismiss the prospect of joint action. Making artificial cuts to output for a short-term gain in prices would be senseless, Russian Energy Minister Alexander Novak said Sept. 4. Igor Sechin, chief executive officer of Russia’s largest oil company Rosneft OJSC, also delivered a reality check, saying the nation won’t be joining the Organization of Petroleum Exporting Countries and couldn’t cut production even if it wanted to.
However, the nation can tolerate low prices better than many OPEC members. Russia’s budget deficit is projected to be about 3 percent of economic output this year, according to Finance Minister Anton Siluanov. Saudi Arabia, OPEC’s largest producer, will have a budget gap of almost 20 percent, the International Monetary Fund forecasts.
Even if Russia wanted to join a future OPEC move to curb production, it
doesn’t have the ability of some Persian Gulf producers to quickly raise or
lower output because of the harsh winters and complex geology at its Siberian
oil fields, according to the Russian Energy Ministry.
“You cannot regulate productivity of Russian wells simply by turning a
faucet,” Sergei Klubkov, exploration and production analyst at Moscow-based
Vygon Consulting, said by e-mail.
----Russia
is also in direct competition for market share with OPEC members. The rivalry
is particularly acute in Asia, the main source of growth in oil demand and a
region where Saudi Arabia is also taking steps to maintain its presence. Iran,
which produces a similar grade of crude to Russia, is preparing to ramp up
production by as much as 1 million barrels a day next year after reaching an
agreement to lift international sanctions.
MoreSolar & Related Update.
With events
happening fast in the development of solar power and graphene, I’ve added this
new section. Updates as they get reported. Is converting sunlight to usable
cheap AC energy mankind’s future from the 21st century onwards? DC?
A quantum computer next?
Novel efficient and low-cost semitransparent solar cells
Date:
September 8, 2015
Source: The
Hong Kong Polytechnic University
Summary:
Scientists have successfully developed efficient and low-cost semitransparent
perovskite solar cells with graphene electrodes. The power conversion
efficiencies of this novel invention are around 12 percent.
Developing
transparent or semitransparent solar cells with high efficiency and low cost to
replace the existing opaque and expensive silicon-based solar panels has become
increasingly important due to the increasing demands of the building integrated
photovoltaics (BIPVs) systems. The Department of Applied Physics of
The Hong
Kong Polytechnic University (PolyU) has successfully developed efficient and
low-cost semitransparent perovskite solar cells with graphene electrodes. The
power conversion efficiencies (PCEs) of this novel invention are around 12%
when they are illuminated from Fluorine-doped Tin Oxide bottom electrodes (FTO)
or the graphene top electrodes, compared with 7% of conventional
semitransparent solar cells. Its potential low cost of less than HK$0.5/Watt,
more than 50% reduction compared with the existing cost of Silicon solar cells,
will enable it to be widely used in the future.
Solar
energy is an important source of renewable energy, in which solar cell will be
used to convert light energy directly into electricity by photovoltaic effect.
The first generation crystalline silicon solar panel is highly stable with
efficient energy conversion, but opaque and expensive. The second generation
solar cell, namely thin film solar cell, is light in weight and can be made
flexible. However, they are made of rare materials with complicated structure
and need high temperature treatments. With the research objectives of producing
solar panels of high PCEs, easy fabrication, and low cost, in recent years,
scientists have been investigating third generation solar cells. Perovskite
solar cell as a novel third generation solar cell has attracted much attention
recently due to its high power conversion efficiency, convenient fabrication
process and potentially low cost.
More
Have a great weekend everyone.
Son,
if you really want something in this life, you have to work for it. Now quiet!
They're about to announce the lottery numbers.
BOE
Governor Mark Carney, with apologies to Homer Simpson.
The monthly Coppock Indicators finished August
DJIA: +65 Down. NASDAQ:
+168 Down. SP500: +92 Down.
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