Fed Whisperer Confirms December Liftoff Still A Go, But Flight Path Won’t Be Steep

Submitted by Tyler Durden  –  ZeroHedge

The FOMC went with an ultra-dovish “clean relent” in September, and shifted the reaction function to include international financial markets in what was presumably an effort to avoid sparking an EM meltdown. Confusion reigned.

Then, in October, they decided that was probably a communication error and so they switched gears and leaned hawkish in the statement.

What’s now become clear is that this is all ad hoc. There’s no consistency to the message, there’s no continuity, and these decisions are being made on a meeting-to-meeting basis based on who knows what. 

Fortunately, there’s one man who, like Ben Bernanke, has the “courage” to cut through the fog and explain the unexplainable. That man is Jon Hilsenrath, and his take on the October Fed minutes is presented below.

Via WSJ Continue reading

Paris – A Familiar Pattern

Submitted by William Bonner, Chairman – Bonner & Partners

War is the Health of the State

NORMANDY, France – Grim news. Many thanks to all friends and readers who wondered about our safety on Friday.

As it happened, news of the Paris massacre got to the homeland faster than it got to us. We were already driving out of town when the terrorists attacked. We did not find out about it until we checked in on the markets.

“Paris attacks” were blamed for a 203-point drop for the Dow, we discovered. Later, we read the details. The War on Terror is in its 14th year. There is no sign of victory for either side.

And now we see the familiar pattern. The body count went up. The flags went down. The fever mounts.


The_French_flag_flies_at_The French flag flies at half-mast above the Grand Palais

Photo via Reuters


“We shouldn’t have let them into our country,” said an outraged neighbor.


“Muslims. They want to kill us. Their religion tells them to do it. We have to defend ourselves. But President Hollande only talks of war. He doesn’t make war.” Continue reading


Editors Note: I have tremendous respect for J.C. Collins.  However, in regards to his adamant conclusions on the subject, I would be remiss not to note, that despite a considerable market correction, Gold remains the best performing asset class of the New Monetized Millennium, by a country mile.   J.C. can be the first to call me when that changes.

Submitted by J.C. Collins  –  philosophyofmetrics

Dump GoldAs the price of gold continues to get hammered the purveyors of fear porn have become acutely quiet on the reasons for the collapse.  The script of $10,000/oz gold has likely ran its course as the larger segment of the population no longer believes the grandiose script of imminent dollar collapse and the end of the financial world as we know it.  The losses which have accumulated since 2011 for those heavily invested in gold are massive and the wealth bleed continues every day and week.

As of this writing the price of gold is $1077/oz and dropping.  The last high was in August of 2011 when gold was $1900/oz.  That is a 17% drop in the price of gold in just 4 years.  Keep in mind that this drop in price has transpired at the same time that so many alternative analysts and fear based writers have been telling you that gold will skyrocket into the atmosphere.

So how did so many get it so wrong?

Whether the fear based promotion of huge price increases was an honest mistake or outright propaganda to sell precious metals is somewhat irrelevant at this point.  The reality is that the price of gold is collapsing and astute investors would do well to get out now and only get back in when the market is near a bottom.

There are many reasons why the price of gold will continue its downward trajectory.  The most obvious is that the expected inflation from QE never materialized and the purpose of using gold as a hedge against inflation has become somewhat redundant and non-consequential in the existing deflationary environment.

The other argument was that the US dollar was going to collapse and precious metals would act as the only vehicle by which wealth could be retained.  The fact that gold has been achieving the opposite of wealth retention for investors is lost on the promotors of faulty analysis, as well as many who refuse to believe that they have been subjected to a narrow minded and often contradictory script of irrational fear. Continue reading

Recalling July Asian ‘Dollar’

Submitted by Jeffrey Snider  –  Alhambra Investment Partners

The overnight rate in offshore renminbi liquidity surged over 4% today, the fifth such notable heave in this half of 2015. The rate had been under 2% for the six trading days before and including Friday, but overnight CNH HIBOR jumped from 1.7325% to 4.4525% over the weekend. The one-week maturity similarly spiked, moving from 2.796% at the end of last week to 4.3705% to start this one. Even the 3-month CNH rate, which is typically far, far more stable, increased by more than 60 bps to 4.257%.

Such dramatic moves have become more commonplace in Hong Kong trading of late, coinciding with the obvious travails of eurodollar function especially going back to the start of Q3 (July 6). In more recent weeks, there had been an acute correlation between offshore CNH liquidity and the “price” of “dollar” liquidity in China, as represented by the CNY/USD exchange rate. The PBOC had been involved in pushing that rate upward especially at the end of October after its rate cuts and reserve “release”, but the Chinese central bank has clearly relented on that count. After increasing the country’s official “middle rate” exchange (where the RMB band is anchored), the PBOC has allowed the middle rate to decline for nine straight days including today.

ABOOK Nov 2015 Asian Dollar CNH

It is, however, interesting to note that the quoted CNY/USD exchange was up in trading this morning when the CNH “fix” was calculated. It might suggest private market function as opposed to strictly artificial imposition by the PBOC’s middle rate, but for whatever case the offshore “tightening” was pronounced – a fact that we can appreciate at least separately from the view of ongoing surliness in UST bills. Continue reading

Bitcoin and The Blockchain – Banks Must Embrace Or “Die”

Submitted by Mark O’Byrne  –  GoldCore

Editors Note: GoldCore believe that blockchain technology will revolutionise the world of finance, payments and money and may have an impact on the world on a scale of that of the internet.  Hence, the need to keep an eye on this very important evolving technology that has ramifications for us all.

If you thought the internet was disruptive, well you ain’t seen nothing yet … theblockchain cometh!

Charlie Morris is the editor of Atlas Pulse – a newsletter focusing on gold, bitcoin, blockchain and disruptive technology.. He has written an excellent article looking at bitcoin, the blockchain and the ramifications for banks and our financial system.

Symbols for Gold Silver and Bitcoin
Symbols for Gold, Bitcoin and Silver – Atlas Pulse


by Charlie Morris

Bitcoin’s had one hell of a year.

The price of a single bitcoin recently touched $500, which is three times higher than it was in August this year. That’s one hell of a move in a short space of time and I’m going to try and put that into context.

In November 2013, there were just over 12 million bitcoins in circulation and the price touched $1,200, meaning the network was briefly worth $14.4bn. This new form of electronic money had high hopes and some felt it would genuinely catch on as it had the potential to challenge the existing system in global payments.

Bitcoin clearly got ahead of itself and the excitement about the future of money took a turn for the worse.

There were scandals such as the loss of bitcoins at the MT Gox exchange (a bitcoin trading platform), the closure of the Silk Road website (drugs and other bad things) and the banning of bitcoin wallets by Apple (users could no longer transact on their phones).

The lowest ebb came in January this year when the network value briefly dropped below $ bn, a 77% contraction. Many high profile commentators wrote off bitcoin and predicted a future value below $1.

Today the bitcoin network appears to be alive and well. It recently saw total daily transaction volumes rise above $300m. This growth in usage from $50m per day in the summer has caused the price to surge. At $500 per bitcoin, the network value recently touched $7.4bn. Continue reading

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Corporate America Cannibalizes Itself With Stock Buybacks (Reuters)
Fear Spreads as China’s Finance Firms Face Arrests (Bloomberg)
Xi Says China’s Economy Resilient, Ample Room For Manoeuvring (AP)
Wall Street Is Running the World’s Central Banks (Bloomberg)
What Are The Economic Possibilities For Our Grandchildren? (Pettifor)
Arms Sales Becoming France’s New El Dorado, But At What Cost? (France24)
Eurodesperation (Coppola)
UK Plans to Prioritise Nuclear, Gas Over Renewables to Cut CO2 (Bloomberg)
El Nino Is Causing California Power Prices to Spike (Bloomberg)
US Pension Investment Giant TIAA-CREF Accused of Brazil Land Grabs (NY Times)
Police Civil Asset Forfeitures Exceed All Burglaries in 2014 (Martin Armstrong)
Putin Sets Up Commission To Combat Terrorism Financing (Reuters)
White House Rejects State Demands For Information On Syrian Refugees (Bloomberg)
Paris Terror Unites East Europe Against Merkel’s Refugee Plan (Bloomberg)
Flow Of Refugees Fueled by 80% Rise in Terrorist Killings in 2014 (Guardian)
EU Says Nations May Get Budget Reprieve on Refugee Spending (Bloomberg)
Volunteers At Greek Refugee Relief Facilities Brace For Bad Weather (Kath.)