Baltic Dry Index. 906 -05 Brent Crude 50.23
LIR Gold Target in 2019: $30,000. Revised due to QE programs.
“Call
it the Goldman Sachs test. If this is something Goldman would do to its
clients, don't do it."
Felix
Salmon.
It’s up, it’s down, it’s up, it’s down, it’s up, it’s down, the new norm
is here. Quite how this new unintended consequence of global central banksters
rigging stocks higher, is supposed to help the global economy hasn’t yet been
explained by America’s talking chair, nor the other Goldmanite placemen running
the west’s central banks. My guess is
that the new volatility doesn’t help at all. It wrecks forward planning,
hedging risk, and needlessly destroys capital, is my take, but then I never
worked for Goldman Sachs doing “God’s work” crushing Muppets.
Below, another unintended consequence of the dying Great Nixonian Error
of fiat money.
Wall Street surges as turbulence becomes the norm
Wall Street stocks jumped almost 2 percent on Wednesday in the latest
volatile session as investors weighed the impact of a stumbling Chinese economy
and global market turmoil on the Federal Reserve's impending decision about
when to raise interest rates.
U.S. investors have weathered over two weeks of unusually wide-swinging
trade that has left the S&P 500 with its worst monthly drop in three years
and a loss of 8.5 percent from an all-time high in May.
“What we're seeing today is not a recovery. It's market volatility, it's
nervousness, it's an inability to call the direction of the market," said
Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa,
Oklahoma.
"Through now and October we're going to see a lot more of this, a
lot of volatility.”
U.S. labor markets were tight enough to fuel small wage gains in some
professions in recent weeks, though some companies already felt a chill from an
economic slowdown in China, the Fed said.
The combination of more demand for workers and worries about Chinese
economic growth underscores the challenge faced by the Fed at a Sept 16-17
meeting where it may decide to raise interest rates for the first time since
2006.
More
Asia Stocks Rise, Following U.S. Rally, With China Markets Shut
September 3, 2015 — 1:03 AM BST
Asian stocks rose, following a rebound in U.S. shares, with markets in
China and Hong Kong closed for a holiday.
The MSCI Asia Pacific Index gained 0.4 percent to 126.45 as of 9:01 a.m.
in Tokyo. Chinese shares closed lower on the last trading day of this week as
investors assessed the level of state support before a major military parade on
Thursday. Mainland markets are closed Thursday and Friday to commemorate the
end of World War II.
“One modest positive today is the fact China is offline for its Victory
Day commemorations,” said Chris Weston, Melbourne-based chief markets strategist
at IG Ltd. “So traders and investors will be focused on domestic data,
valuations and trying to understand how to navigate these crazy markets.”
E-mini futures on the Standard & Poor’s 500 Index added 0.3 percent
following a 1.8 percent gain on the underlying index on Wednesday. The U.S.
equities gauge slumped 6.3 percent last month as China’s currency devaluation
spurred concern over global growth, erasing more than $5.7 trillion in equity
market values worldwide, while volatility surged the most on record.
More
These Are a Few of the Stock Charts That Spook Louise Yamada
September 2, 2015 — 4:55 PM BST
Louise Yamada, one of the most famous chart watchers to ever watch a
chart, is not very optimistic about the stock market these days.
She warned at the beginning of August that equities were vulnerable to
declines due to things like narrowing stock-market breadth, violations of trend
lines and depressed volume readings. In her latest report today and in an
interview with Tom Keene yesterday on the radio, she wasn’t any more
optimistic.
And since even Keene hasn’t figured out a way to show graphs over the
radio (yet), here’s a look at what she had to say and a few of the charts that
have her spooked.
“We started to see deterioration in stocks earlier in the year. It’s
been a little bit like crying wolf because we may have been a little bit too
cautious by February. But more and more stocks started to break support levels.
And the technical indicators also became more fragile,” she said.
One of the things that caught her eye: the number of New York Stock Exchange-listed
stocks trading above their 200-day moving averages wasn’t able to get above 60
percent this year, even as major market indexes continued to move higher.
Another red flag was her own volume momentum indicator, which compares
trading volume of rising stocks and falling stocks. It went into an oversold
condition and has been there consistently for three months.
“I think it’s important to understand that when you’re in a bull market,
an oversold situation can be a very temporary registration and people tend to
say ‘buy the dip,”’ she said. “But when you start going into a weakening
market, a bear market for instance, the oversold can remain oversold and it is
the empirical evidence of selling pressure. So all of these rallies that we’ve
had since June when this indicator went oversold have been evidence with
selling into strength. So people were taking their money out on the rallies
that we’ve seen over the past three months.”
More
We end for the day
with what looks to me to be long term trouble for Uncle Scam. China is about to
rewrite the rules of international finance. Why kowtow to Uncle Scam and
the World Bank using expensive American
firms, if there’s an easy going cheaper option at the AIIB using Chinese or
Asian or European firms.
Exclusive: China's AIIB to offer loans with fewer strings attached - sources
Tue Sep 1, 2015 | 6:24 PM EDT
BEIJING (Reuters) - China's new international development bank will
offer loans with fewer strings attached than the World Bank, sources said, as
Beijing seeks to change the unwritten rules of global development finance.
The Asian Infrastructure Investment Bank (AIIB) will require projects to
be legally transparent and protect social and environmental interests, but will
not ask borrowers to privatize or deregulate businesses for loans, four sources
with knowledge of the matter said.
By not insisting on some free market economic policies recommended by
the World Bank, the AIIB is likely to avoid criticism leveled against its rivals,
who some say impose unreasonable demands on borrowers.
It could also help Beijing stamp its mark on a bank regarded by some in
the government as a political as much as an economic project, and reflects
scepticism in China about the virtues of free market policies advocated in the
West.
"Privatization will not become a conditionality for loans,"
said a source familiar with internal AIIB discussions, but who declined to be
named because he is not authorized to speak publicly on the matter.
"Deregulation is also not likely to be a condition," he added.
"The AIIB will follow the local conditions of each country. It will not
force others to do this and do that from the outside."
More
"Markets are only a tiny facet of society,
but being made by mass psychology, they are a good litmus paper for what is
going on. Markets only work when they believe, and this confidence is
based on the idea that men can manage their affairs rationally. If that
belief fades, then so do the markets. They do not merely dive, they dive
and then they disappear. It happened here in the blight of the spirit
from 1930 - 1933, and it happened in other countries."
“Adam Smith” aka George
Goodman.
At the Comex silver depositories
Wednesday final figures were: Registered 52.71 Moz, Eligible 115.23 Moz, Total
167.94 Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
A trillion here a trillion there and pretty soon
you’re talking real money.
Welcome to Quantitative Tightening as $12 Trillion Reserves Fall
September 2,
2015 — 8:44 AM BST
The great global monetary tightening of 2015 is under way, but it’s not
being led by the Federal Reserve.
Even as U.S. policy makers ponder whether to raise interest rates this
month, one recent source of central bank liquidity in financial markets is
drying up and the loss of it partly explains August’s trading volatility.
Behind the drawdown are the foreign exchange reserves run by the central
banks. Bolstered following financial crises in the late 1990s as a buffer
against capital outflows and falling currencies, such hoards fell to $11.43
trillion in the first quarter from a peak of $11.98 trillion in the middle of
last year, according to the International Monetary Fund.
Driving the decline is a combination of forces including the economic
slowdown and recent devaluation in China, the Fed’s pending rate hike, the
collapse of oil and decisions in Switzerland and Japan to cease intervening in
currencies.
Each means central banks are either paring their reserves to offset an
exit of capital or manage currencies, have less money flowing into their
economies to salt away or no longer need to sit on as much. Whichever it is,
the shrinking of reserves means much less money flowing into the financial
system given authorities tended to recycle their cash piles into local currency
or liquid assets such as bonds.
In the words of Deutsche Bank AG strategist George Saravelos and
colleagues, welcome to the world of “quantitative tightening.”
They
predict 2015 will mark the peak of reserve accumulation after two decades of
growth with China in the vanguard as its new currency regime means it has to
pare reserves to avoid a freefall in the yuan. It has already reduced its
holdings to $3.65 trillion from $3.99 trillion in 2014.
More
Solar & 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?
Graphene fuel cell electric supercar planned to take on Ferrari
1 September 2015 By Tereza Pultarova
An electric supercar powered by a graphene-based hydrogen fuel cell with
better performance than a Ferrari is being developed by a newly established
consortium.
The car, to be named Edison Electron One, will be the first project of
the newly established Edison Motor Cars – a partnership between Sunvault
Energy, the Edison Power Company and Delaware Corporation.
The firms said Edison Electron One, to be unveiled in 2016, will be
equipped with an electric drive unit at each wheel, providing the vehicle with
1,355 Newton meters of torque, which is almost double that of a Ferrari 488 GTB
and one third more than that of the Tesla P85D.
The firms said they are building the car to demonstrate their
graphene-integrated hydrogen fuel cell technology.
"The fuel cell will be powered by an on-demand hydrogen generation
unit built into the car and will only require water," said Robert
Murray-Smith, Director of Sunvault Energy.
The car will be able to accelerate from zero to 100 km/h in about two
seconds and will be rechargeable in five minutes, the firms said.
Edison Motor Cars will only make the car available to customers on a
special-order basis.
"We are excited to be producing this truly revolutionary automobile
that will put our Graphene Energy Storage Device front and centre on the world
stage at the simple turn of a key", stated Sunvault Energy Chief Executive
Officer Gary Monaghan. "The Electron One will not only be able to
challenge any vehicle in performance, but will also be fully flexible,
functional and convenient, just as a fuel-filled vehicle is today.”
http://eandt.theiet.org/news/2015/sep/edison-electron-one.cfm
The monthly Coppock Indicators finished August
DJIA: +65 Down. NASDAQ:
+168 Down. SP500: +92 Down.
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