Friday, 27 May 2016

Much Ado About Nothing.

Baltic Dry Index. 601 -04      Brent Crude 49.16

LIR Gold Target in 2019: $30,000.  Revised due to QE programs.

Brexit odds checker.

Brexit Quote of the Day.
Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, tell any lie, to assure the survival and the success of the EUSSR.

Dodgy Dave Cameron, with apologies to J. F. Kennedy.

The G-7: they came, they talked, they decided that they need “to avoid falling into another crisis." More specifically, falling into another 2008 Lehman style crisis. Well yes, but we all knew that before Dodgy Dave and all the rest headed out to the airport to fly to Japan. The road to hell is paved with good intentions, just ask the Greeks. Basically, it was every man for himself.
Below, you have to wonder why they bother. You have to wonder why Canada and Italy are still members, while China, India and Russia aren’t.

The whole history of civilization is strewn with creeds and institutions which were invaluable at first, and deadly afterwards.

Walter Bagehot.

Japan Fails in Bid to Have G-7 Warn of Global Crisis Risk

May 27, 2016 — 2:37 AM BST Updated on May 27, 2016 — 4:43 AM BST
Japanese Prime Minister Shinzo Abe failed in his bid to have Group of Seven leaders warn of the risk of a global economic crisis in a communique issued as their summit wraps up Friday in central Japan.

The final statement declares that G-7 countries "have strengthened the resilience of our economies in order to avoid falling into another crisis."

Japan had pressed G-7 leaders to note "the risk of the global economy exceeding the normal economic cycle and falling into a crisis if we did not take appropriate policy responses in a timely manner." On Thursday, Abe presented documents to the G-7 indicating there was a danger of the world economy careering into a crisis on the scale of the 2008 Lehman shock.

Abe has frequently said he would proceed with a planned increase in Japan’s sales tax in April 2017 unless there is an event on the scale of Lehman or a major earthquake. He is expected to announce next week he is deferring the tax rise, Japanese media reported.

One of the biggest topics at the meeting was China, which is not a member of the G-7. A slowdown in China, alongside a global steel glut, has spurred concerns among developed economies and at times disagreement on how best to spur growth. Abe has advocated greater government spending to back up monetary policy action.

The communique urged a coordinated, albeit differentiated, response to storm clouds gathering over the global economy. Leaders pledged to use a mix of tools depending on their circumstances.

The G-7 statement compromised on the austerity-versus-stimulus debate by leaving each country’s road map open -- saying they will take "into account country-specific circumstances" as they move to use "all policy tools -- monetary, fiscal and structural -- individually and collectively to strengthen global demand and address supply constraints while continuing our efforts to put debt on a sustainable path."

G7 agrees need strong message on South China Sea, China says don't 'hype'

Thu May 26, 2016 7:51am EDT
Group of Seven (G7) leaders agreed on Thursday on the need to send a strong message on maritime claims in the western Pacific, where an increasingly assertive China is locked in territorial disputes with Japan and several Southeast Asian nations.
The agreement prompted a sharp rejoinder from China, which is not in the G7 club but whose rise as a power has put it at the heart of some discussions at the advanced nations' summit in Ise-Shima, central Japan.
"Prime Minister (Shinzo) Abe led discussion on the current situation in the South China Sea and East China Sea. Other G7 leaders said it is necessary for G7 to issue a clear signal," Japan's Deputy Chief Cabinet Secretary Hiroshige Seko told reporters after a session on foreign policy affairs.
At a news conference late on Wednesday, Abe said Japan welcomed China's peaceful rise while repeating Tokyo's opposition to acts that try to change the status quo by force and urging respect of the rule of law - principles expected to be mentioned in a statement after the summit.
The United States is also increasingly concerned about China's action in the region.
Chinese Foreign Ministry spokeswoman Hua Chunying retorted in Beijing that the South China Sea issue had "nothing to do" with the G7 or any of its members.
"China is resolutely opposed to individual countries hyping up the South China Sea for personal gain," she said.

China says more than 40 countries support its stance on South China Sea dispute

Fri May 20, 2016 8:27am EDT
China said on Friday more than 40 countries support its position on an international legal case brought by the Philippines over its claims in the South China Sea.
China refuses to recognize the Philippine case and says all disputes should be resolved through bilateral talks.
Beijing has stepped up its rhetoric ahead of an expected ruling by the Permanent Court of Arbitration in The Hague on the Philippines case.
China claims almost all of the energy-rich South China Sea, through which more than $5 trillion of maritime trade passes each year. The Philippines, Brunei, Vietnam, Malaysia and Taiwan have overlapping claims.
"As far as I know, there are more than 40 countries that have made statements or made their positions known through all kinds of means," Foreign Ministry spokeswoman Hua Chunying said at a regular briefing.
"More and more countries are expressing themselves and showing their support for China on the South China Sea issue."
She added that any unbiased country would support China.
Countries including Burundi, Slovenia, Niger and Mozambique had pledged their support for China, the Foreign Ministry said this week.

The G-7 photo op over, the action switches now to the USA –China meeting Beijing on June 6-7. And then on to the European Cup starting in France on June 10, and the next Fedster coven on June 14-15, at which they’ve suggested they’ll probably raise their key interest rate again by another meaningless quarter of one percent. This is what passes for adult economic policy in the dying days of the Great Nixonian Error of fiat money.

U.S.-China Economic Poker Game Looms With Market Calm at Stake

May 26, 2016 — 11:00 PM BST
As top American and Chinese officials prepare for their annual powwow against the backdrop of a looming Federal Reserve interest-rate increase, the policy actions of the world’s two-biggest economies have never been so closely bound.

In what could be likened to a poker game, officials from the world’s two biggest economies will attempt to assess each others’ policy plans -- and their potential domestic implications -- when they sit down in Beijing June 6-7.

China wants to loosen the yuan’s link with the dollar while averting an exodus of capital. The Fed wants to gradually move away from near-zero interest rates, with almost all officials penciling in at least two quarter-point hikes this year. The past nine months have made clear how the two sides’ goals can conflict, with the withdrawal of U.S. stimulus encouraging Chinese outflows and a surprise August yuan devaluation generating market ructions that put a pause on a Fed rate move.

A Fed-induced surge in the U.S. currency would put pressure on the yuan, lighting a match under money outflows that have eased significantly after a record $1 trillion left in 2015.

Avoiding another financial conflagration is one task for Fed Vice Chairman Stanley Fischer, U.S. Treasury Secretary Jacob J. Lew and other officials when they meet their Chinese counterparts. The gathering will be the eighth and final Strategic and Economic Dialogue since the Obama administration agreed on the annual sessions, which were an extension of a Bush administration initiative.

“Both China and the U.S. have a shared interest in avoiding mutual monetary policy surprises that could constrain their own room for domestic policy actions,” said Eswar Prasad, a former chief of the International Monetary Fund’s China division and now a professor at Cornell University in Ithaca, New York.

For China, the biggest risk emanating from the U.S. could be the forward path of rates that the Fed will communicate at its June 14-15 meeting.
We end for the long weekend with some very bad news from America. A story, I think that is only in its infancy.

U.S. sees first case of bacteria resistant to all antibiotics

Thu May 26, 2016 | 8:35 PM EDT
Reuters) - U.S. health officials on Thursday reported the first case in the country of a patient with an infection resistant to all known antibiotics, and expressed grave concern that the superbug could pose serious danger for routine infections if it spreads.

"We risk being in a post-antibiotic world," said Thomas Frieden, director of the U.S. Centers for Disease Control and Prevention, referring to the urinary tract infection of a 49-year-old Pennsylvania woman who had not travelled within the prior five months.

Frieden, speaking at a National Press Club luncheon in Washington, D.C., said the infection was not controlled even by colistin, an antibiotic that is reserved for use against "nightmare bacteria."

The infection was reported Thursday in a study appearing in Antimicrobial Agents and Chemotherapy, a publication of the American Society for Microbiology. It said the superbug itself had first been infected with a tiny piece of DNA called a plasmid, which passed along a gene called mcr-1 that confers resistance to colistin.

"(This) heralds the emergence of truly pan-drug resistant bacteria," said the study, which was conducted by the Walter Reed National Military Medical Center. "To the best of our knowledge, this is the first report of mcr-1 in the USA."

The patient visited a clinic on April 26 with symptoms of a urinary tract infection, according to the study, which did not describe her current condition. Authors of the study could not immediately be reached for comment.

The study said continued surveillance to determine the true frequency of the gene in the United States is critical.

"It is dangerous and we would assume it can be spread quickly, even in a hospital environment if it is not well contained," said Dr. Gail Cassell, a microbiologist and senior lecturer at Harvard Medical School.

But she said the potential speed of its spread will not be known until more is learned about how the Pennsylvania patient was infected, and how present the colistin-resistant superbug is in the United States and globally.

In the United States, antibiotic resistance has been blamed for at least 2 million illnesses and 23,000 deaths annually.

The mcr-1 gene was found last year in people and pigs in China, raising alarm.

The potential for the superbug to spread from animals to people is a major concern, Cassell said.

For now, Cassell said people can best protect themselves from it and from other bacteria resistant to antibiotics by thoroughly washing their hands, washing fruits and vegetables thoroughly and preparing foods appropriately.

Experts have warned since the 1990s that especially bad superbugs could be on the horizon, but few drugmakers have attempted to develop drugs against them.
‘Probably the battle of Waterloo was won on the playing-fields of Eton, but the opening battles of all subsequent wars have been lost there.’

George Orwell

Dodgy Dave upheld this fine tradition by losing the renegotiation war with the EU and leading the Remainiac surrender campaign to stay in the EUSSR.
At the Comex silver depositories Thursday final figures were: Registered 30.12 Moz, Eligible 123.52 Moz, Total 153.64 Moz. 

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
In EUSSR news it was everything as normal yesterday. France and Italy continued in chaos-as-usual mode, no one really liked each other, but the Germans especially disliked the Greeks. Migrant Mad Merkel’s pact with Sultan Erdogan, merely shifted the migrant route back to Libya to Italy again. JC Junker especially disliked GB’s Boris Johnson. Welcome to the 21st century, increasingly dysfunctional, sclerotic, Bilderberger, EUSSR.

"If the EU cannot resolve a small problem the size of Greece, what is the point of Europe?"

Romano Prodi, former chief of the European Commission, former Italy Prime Minister.

French union leads new anti-reform protests, seeks to maintain momentum

Thu May 26, 2016 8:49am EDT
France's hardline CGT union sought to choke off power and fuel supplies and hamper the public transport network on Thursday in a showdown with a government that flatly refused to withdraw a contested labor law reform.
As tens of thousands of demonstrators took to the streets, workers responded to the union call by stopping work at oil refineries, nuclear power plants and the railways, as well as erecting road blocks and burning wooden pallets and tires at key ports like Le Havre and near key distribution hubs.
The standoff, which raises the specter of disruption during the France-hosted European soccer tournament that opens on June 10, was condemned both by Socialist Prime Minister Manuel Valls and the country's other big trade union, the CFDT.
After months of rolling protests sparked by a reform that aims to make hiring and firing easier, Thursday's stoppages and street marches were being watched closely as a test of whether the CGT-led opposition is solid or at risk of fizzling out.
The street marches were joined by scores of marchers from a youth protest movement called Nuit Debout (Up All Night). Police deployed to counter risks of the severe fringe violence in which 350 police and several protesters have been hurt and more than 1,300 arrested at similar rallies in recent weeks.
CGT chief Philippe Martinez, asked by Reuters if his union was willing to disrupt the Euro 2016 soccer contest, said: "The government will has the time to say 'let's stop the clock' and everything will be ok."
"There is no question of changing tack, even if adjustments are always possible," said Valls, who flatly rejected calls to scrap the part of the law that put the CGT on the warpath.
That section would let companies opt out of national obligations on labor protection if they adopt in-house deals on pay and conditions with the consent of a majority of employees.
The SNCF state train company said that upwards of two-thirds of national, regional and local rail connections were operating, suggesting stoppages by railworkers were hurting less than last week when a similar strike halved the number of trains running.
After police intervention in recent days to lift blockades at refineries and fuel distribution depots, Valls said 20-30 percent of fuel stations were dry or short of certain fuels.
"The situation is less worrisome as of today," Transport Minister Alain Vidalies said. Deliveries of fuel from depots to the petrol pump were now improving, he said.
The number of fuel stations short of petrol or diesel fell to 83 on Thursday from 140 on Wednesday in the Loire-Atlantique department of western France, the government office there said.
French nuclear power capacity was cut by as much as five gigawatts due to stoppages. That is equivalent to just over six percent of the country's total production capacity.
Even if power industry experts say the nuclear plant strike was unlikely to provoke major blackouts due to legal limits on strike action and power imports from abroad, the action usually raises running costs for the EdF power utility.
With dockers striking at the southern port of Marseille, the number of ships waiting at sea to offload oil, gas and chemicals rose to 21 from what would normally be about five, the port authority said.

Europe's Pointless 'Breakthrough' on Greece

May 26, 2016 2:00 AM EDT
The leader of Europe’s finance ministers called Wednesday’s agreement on Greek debt a “major breakthrough.” In a way, it was. The latest twist in this perpetual negotiation has raised the art of dithering to impressive new heights.

The next financing crunch, which would otherwise have come this summer, has been staved off: Greece will get money to last it at least until October. To make this possible and maintain a show of comity, its official creditors have ventured various semi-commitments and vague understandings. But they left basic disagreements -- mainly between Germany and the International Monetary Fund -- unresolved. This epic of mismanagement is set to drag on.

Recently, and in increasingly strident terms, the IMF has called on Europe to commit to additional debt relief, whether by haircuts, caps on interest rates, extended maturities or a repayment moratorium. It has argued -- correctly -- that Greece’s debts aren’t supportable otherwise, even with the maximum feasible effort on the Greek side to achieve budget discipline. The new deal acknowledges this position by stating long-term targets for the debt-financing burden Greece will have to carry. What it fails to do is say how those targets might actually be met.

German Foreign Minister Steinmeier says extending Russia sanctions more difficult

Thu May 26, 2016 6:27am EDT
An agreement on renewing sanctions against Russia when they run out on July 31 has become more difficult with growing opposition from some EU countries, Germany's foreign minister said on Thursday.
European Union economic sanctions against Russia were introduced for one year in July 2014 in response to its actions in Ukraine and twice extended in 2015.
"We are aware that resistance in the EU to extending the sanctions toward Russia has increased," Frank-Walter Steinmeier was quoted by Lithuania's BNS news agency saying in an interview.
"It will be more difficult than it was last year to find a common position on this issue."
Germany wants to keep the sanctions until the Minsk peace accords between Russia and Ukraine are implemented, Steinmeier said.
"One thing is for sure. We cannot ignore Russia's annexation of Crimea in violation of international law and the destabilization of Eastern Ukraine," he said.
The 28-strong EU needs unanimity to keep the sanctions in place and the bloc's unity has been increasingly tested on that.
Last week diplomats and officials told Reuters the EU was still on track to renew them, though an extension could be contested and only short-term.
Italy, Greece, Cyprus, Hungary and Bulgaria are among EU states skeptical that sanctions should be extended, diplomats said, facing off against Britain, Sweden, Poland and the Baltic states.

Boris Johnson as PM is 'horror scenario', says Juncker EU aide

Chief of staff to European commission president lumps Brexit campaigner in with Trump and Le Pen at G7 summit in Japan
Thursday 26 May 2016
Boris Johnson has faced an extraordinary string of attacks from some of the most senior figures in the EU, one of whom described the prospect of him becoming prime minister as a “horror scenario”.

Martin Selmayr, who is chief of staff to the European commission president, Jean Claude Juncker, lumped Johnson in with France’s Marine Le Pen and the US presidential candidate Donald Trump in a provocative tweet.

The message, in which Selmayr says “it is worth fighting populism”, has already triggered a backlash among out campaigners in Britain.

The Vote Leave media spokesman Robert Oxley said of the intervention: “Unelected bureaucrat working for unelected bureaucrat speaks.” There was speculation that Selmayr’s action might have been coordinated as it landed immediately after criticism from Juncker.

The commission president accused Johnson of painting an unreal picture of the EU for the British public and said he should return to Brussels, where he previously worked as a journalist, to see whether his claims chimed with “reality”.

Juncker also hinted that if Britain’s highest-profile campaigner were to become prime minister then his discussions with European partners might be strained.

At the G7 summit in Japan, responding to a question at a press conference about Johnson’s decision to compare the EU’s aims to those of Adolf Hitler, Juncker said: “I’m reading in [the] papers that Boris Johnson spent part of his life in Brussels. It’s time for him to come back to Brussels, in order to check in Brussels if everything he’s telling British people is in line with reality.

“I don’t think so, so he would be welcome in Brussels at any time.”

Asked whether the European institutions would be able to work with Johnson if he entered Downing Street, Juncker replied: “The atmosphere of our talks would be better if Britain is staying in the European Union.”
Johnson hit back with claims that Germany was the “paymaster” of an EU project designed to create a United States of Europe.

“We all know what to do, but we don’t know how to get re-elected once we have done it.”

Jean-Claude Juncker. Failed Luxembourg Prime Minister and ex-president of the Euro Group of Finance Ministers. Confessed liar. EC President.

Brexit The Animated Movie.

Brexit Quote of the week.

“We hold these truths to be self evident: that all men are created equal; that they are endowed by their Creator with certain inalienable rights; that among these are life, liberty, and the pursuit of happiness outside of the EUSSR.”

With grateful thanks to the writers of the US Declaration of Independence.

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 or DC energy mankind’s future from the 21st century onwards? DC? A quantum computer next?

SunPower and Total to supply power to world’s first solar energy-operated metro

26 May 2016

US solar energy company SunPower has signed a power purchase agreement with Total to deliver 300GW hours per year of clean energy to the Metro of Santiago in Chile.
The metro currently handles 2.2 million passengers every day and will become the world's first public transportation system to operate primarily on solar energy.
Total's new energies division business and operations senior vice-president Bernard Clement said: "This contract is expressing Chile's commitment for a sustainable world.
"We are proud to partner with Metro in developing a new way of powering public transportation systems through competitive, reliable and clean energy. This project supports our ambition to become the responsible energy major."
The Metro will receive its power from a 100MW El Pelicano Solar (AC) Project near the municipalities of La Higuera in the Coquimbo Region and Vallenar in the Atacama Region.
Construction is expected to commence this year and be operational by the end of next year.
SunPower Global Power Plants executive vice-president Eduardo Medina said: "SunPower is proud to serve Metro of Santiago's growing energy demand with cost-competitive, renewable solar power.
"Solar is an ideal energy source for Chile because of the country's high solar resource and transparent energy policies. In partnership with Total, SunPower is committed to the continued growth of our business in Chile."

Another weekend, and hopefully another weekend closer to GB Independence Day. But with Project Fear now at warp speed, targeting pensioners, those on welfare, the young, their parents and grandparents, homeowners, and the military, aided and abetted by the Berlin Broadcasting Corporation, the latest propaganda spin is that Remainiacs ranks are growing. If so, poor John Bull will still likely have a ringside seat, when the EUSSR finally blows up not too far ahead. Have a great weekend everyone.

“When it becomes serious, you have to lie.”

Jean-Claude Juncker. Failed former Luxembourg P.M., serial liar, president of the European Commission.

The monthly Coppock Indicators finished April

DJIA: 17773.64-19 Down. NASDAQ:  4775.36 +11 Down. SP500: 2065.30 -21 Down. 

No comments:

Post a Comment