Baltic Dry Index. 1528 +88 Brent Crude 62.43 Spot Gold 1464
Never ending Brexit now January 31,
maybe sooner.
Trump’s Nuclear China Tariffs
Now in effect.
The USA v EU trade war started October
18. Now in effect.
Comrade Agent Corbyn’s New
Communist, Hate Filled, Labour Party: "You give us your vote. We give you
your dreams.” Delivery aspirational.
Given that it’s the weekend after
Thanksgiving in the USA, a timely story about Thanksgiving, socialism, and its
relevance to the coming GB general election.
Happy Thanksgiving, But Do You Know What It's Really About?
byMish
The origins of Thanksgiving are likely far different that you have been led to believe.
History Lesson
In 1620, the Mayflower with 102 passengers and a crew of 30 set sail for America. The Pilgrims arrived in miserable condition. Two people died on passage and others died shortly after.
The diary of the colony’s first governor, William Bradford, provides the details.
Thanksgiving is actually about the Failure of Socialism and the Success of Private Property and Capitalism.
In the diary of the colony’s first governor, William Bradford, we can read about the settlers’ initial arrangement: Land was held in common. Crops were brought to a common storehouse and distributed equally. For two years, every person had to work for everybody else (the community), not for themselves as individuals or families. Did they live happily ever after in this socialist utopia?
Hardly. The “common property” approach killed off about half the settlers. Governor Bradford recorded in his diary that everybody was happy to claim their equal share of production, but production only shrank. Slackers showed up late for work in the fields, and the hard workers resented it. It’s called “human nature.”
The disincentives of the socialist scheme bred impoverishment and conflict until, facing starvation and extinction, Bradford altered the system. He divided common property into private plots, and the new owners could produce what they wanted and then keep or trade it freely.
Communal socialist failure was transformed into private property/capitalist success, something that’s happened so often historically it’s almost monotonous. The “people over profits” mentality produced fewer people until profit—earned as a result of one’s care for his own property and his desire for improvement—saved the people.
Siren Song of Socialism
Time and time again people, especially young voters, are lured by the call of "free" health care, education, housing, social services, etc.
In the UK, Jeremy Corbyn is promising a self-professed "radical" socialist platform. On that score, Corbyn is correct, his plan is radical.
To understand how radical, please see Jeremy Corbyn Goes for Broke With Last Desperate Act, US Democrats Take Note.
Corbyn has had nothing but praise for Venezuela and its socialist model, now in the ashes of hyperinflation.
Meanwhile, in the US, Elizabeth Warren is promising similar things. So does AOC with her New Green Deal that will cost close to $90 Trillion.
The problem is Progressive Lies Like "Free College" and "Medicare For All" Hide Cost of Debt
So, please
be thankful that Jeremy Corbyn, Elizabeth Warren, Bernie Sanders, etc., (socialists
in general) are not running the UK and US.
Be fearful,
that they might.
Mike
"Mish" Shedlock
New York Fed Adds $108.95 Billion to Markets
By Dave Sebastian Nov. 27, 2019 9:27 am ET
The Federal Reserve Bank of New York added $108.95 billion
in temporary liquidity to the financial system on Wednesday.The intervention came in two parts. There were $87.95 billion in overnight repurchase agreements, or repos, and $21 billion in 15-day repos. The central bank took all the securities it was offered.
Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a short-term loan of central-bank cash, collateralized by the securities.
The Fed has been intervening in markets in the current fashion since mid-September, when short-term rates unexpectedly shot up on a confluence of factors, although it has used similar operations for decades to manage short-term rates.
The Fed’s
interventions are aimed at ensuring that the financial system has enough
liquidity and that short-term borrowing rates remain well-behaved, with the
central bank’s federal-funds rate staying within the 1.5%-to-1.75% target
range. The effective fed-funds rate stood at 1.55% on Tuesday. The broad
general collateral rate for repo trading stood at 1.51%, also for Tuesday.
Since the
large interventions started, money-market rates have been well-behaved. The Fed
is using temporary operations to tamp down on any possible volatility, while
purchasing Treasury bills to build up reserves in the banking system. It hopes
that by buying Treasury bills it will be able to cut back on repo interventions
at the start of next year.
The Fed
currently expects to buy Treasury bills through the middle of next year.
More
Federal Debt Up $1.3 Trillion Since Last Thanksgiving; $10,137 Per Household
November 27, 2019 | 11:41am EST
The federal debt has increased by $1,303,466.578.471.45
since last Thanksgiving, according
to data released by the U.S. Treasury.That is the largest Thanksgiving-to-Thanksgiving increase in the debt in nine years. The last time the debt increased more from Thanksgiving to Thanksgiving was in 2010, when it increased by $1,785,995,360,978.10.
It also equals approximately $10,137.48 per household in the United States.
At the close of business on November 21, 2018—the day before last Thanksgiving—the federal debt stood at $21,769,263,916,844.09. At the close of business yesterday, it stood at $23,072,730,495,315.54.
That equaled an increase of $1,303,466,578.471.45.
That Thanksgiving-to-Thanksgiving increase in the debt worked out to approximately $10,137.48 for each of the 128,579,000 households the Census Bureau estimates there are in the United States in 2019.
The full federal debt of $23,072,730,495,315.54 now equals $179,444 per household.
Bold Bets That Gold Could Triple to $4,000 Trade in New York
By Yvonne Yue Li
November 27, 2019, 6:32 PM GMT Updated on November 28,
2019, 12:00 AM GMT
The gold options market saw $1.75 million in block trades betting the
precious metal could almost triple in more than a year, surpassing the record.
Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.
“It’s like 18-month term life insurance; what will the world look like if gold is at $4,000,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email. “They are hoping for a quick violent move,” he said, referring to the people who bought the call options.
Gold futures climbed to a record $1,923.70 an ounce in 2011 as the Federal Reserve bought more than $2 trillion of debt to stimulate the U.S. economy. While bullion has rallied 14% this year, the precious metal is still 24% below the current all-time high.
Bullion for delivery in February settled at $1,460.80 an ounce at 1:33 p.m. in New York. Futures for June 2021 delivery, which settled at $1,494.40 on Wednesday, will need to almost triple before expiration to make the call options profitable for its holder.
— With assistance by Michael Roschnotti
https://www.bloomberg.com/news/articles/2019-11-27/huge-bets-that-gold-could-triple-to-4-000-trade-in-new-york
Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.
“It’s like 18-month term life insurance; what will the world look like if gold is at $4,000,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email. “They are hoping for a quick violent move,” he said, referring to the people who bought the call options.
Gold futures climbed to a record $1,923.70 an ounce in 2011 as the Federal Reserve bought more than $2 trillion of debt to stimulate the U.S. economy. While bullion has rallied 14% this year, the precious metal is still 24% below the current all-time high.
Bullion for delivery in February settled at $1,460.80 an ounce at 1:33 p.m. in New York. Futures for June 2021 delivery, which settled at $1,494.40 on Wednesday, will need to almost triple before expiration to make the call options profitable for its holder.
— With assistance by Michael Roschnotti
https://www.bloomberg.com/news/articles/2019-11-27/huge-bets-that-gold-could-triple-to-4-000-trade-in-new-york
Poland Brings Gold Home; Calls It a Symbol of Strength
November 26, 2019 by SchiffGold
Poland has repatriated 100 tons of gold from England.
National Bank of Poland Governor Adam Glapiński announced the yellow metal’s
return home on Monday.“The gold symbolizes the strength of the country,” Glapiński told reporters.
He noted that the country could generate multi-million dollar profits if it sold its gold reserves, although there are no plans to do so.
Glapiński said the Polish central bank will continue to bring its precious metal home if the “reserve situation is favorable.”
Poland has also been aggressively increasing its gold reserves. The National Bank of Poland added 100 tons of the yellow metal to its hoard through the first half of 2019. In a statement announcing the plans earlier this year, Glapiński said he was “proud” of the moves.
We managed to increase the strategic reserves of gold and take steps to repatriate a large part of Polish gold to the country. By implementing our constitutional, statutory and simply patriotic commitment, we not only build the economic strength of the Polish state, but also create reserves that will safeguard its financial security. This is the global trend, but also the expectation of Polish society.”
----Gold repatriation underscores the importance of holding physical gold where you can easily access it. Gold-backed exchange-traded funds (ETFs) and “paper gold” have their place. But true security and stability come from physical possession of precious metals. If you can’t hold it in your hand, you don’t really possess it. That’s exactly why these countries are bringing their gold home, safe within their own vaults.
A report by Bullion Star noted that “Although the official language in the press release is diplomatic, the NBP makes it clear that there is a real risk to holding its gold in London.” According to the report, England’s “brazen” confiscation of Venezuela’s gold may have increased unease about holding gold abroad.
Finally, an impeachment from long ago. A
lesson for today, perhaps?
Samuel Chase
Samuel Chase (April 17, 1741 – June 19, 1811) was an Associate Justice of the United States Supreme Court and a signatory to the United States Declaration of Independence as a representative of Maryland. He was impeached by the House on grounds of letting his partisan leanings affect his court decisions but was acquitted by the Senate and remained in office.Born near Princess Anne, Maryland, Chase established a legal practice in Annapolis, Maryland. He served in the Maryland General Assembly for several years and favored independence during the American Revolution. He won election to the Continental Congress before serving on the Baltimore District Criminal Court and the Maryland General Court. In 1796, President George Washington appointed Chase to the United States Supreme Court.
After the 1800 elections, President Thomas Jefferson and the Democratic-Republicans sought to weaken Federalist influence on the federal courts. Chase's actions on the court had been accused of demonstrating bias, and Jefferson believed that Chase should be removed from office. The House of Representatives impeached Chase on eight articles of impeachment, all centering on Chase's alleged political bias. The Senate voted to acquit Chase on all counts, and Chase served on the Supreme Court until his death in 1811. Some historians have argued that Chase's acquittal set an important precedent regarding the independence of the federal judiciary.
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This weekend’s musical diversion. Piano music
by J. C. Bach. The “London Bach.” The Catholic one. Music Master to Queen
Charlotte.
Johann Christian Bach
"The leaders of the French Revolution excited the poor
against the rich; this made the rich poor, but it never made the poor
rich."
Fisher Ames.
The monthly Coppock Indicators finished November
DJIA: 28,051
+76 Up. NASDAQ: 8,665 +94 Up. SP500: 3,141 +90 Up. All higher again, but it’s not a buy signal I would
follow.
