Stocks, the Economy and the Money Supply – What to Watch

Submitted by Pater Tenebrarum  –  The Acting Man Blog

The Stock Market and Economic Data

In previous articles we have occasionally discussed the interaction between economic indicators and the stock market. Among the topics we have touched upon: for one thing, the capitalization-weighted indexes can hardly be called “leading indicators” of the economy anymore. In fact, if one studies specific major turning points over the past two decades or so, it is clear that the market seems to “know” very little (at least not in advance).


The impression one gets is actually that the major indexes are acting like coincident rather than leading indicators of the economy. However, the market is not completely bereft of leading indicator qualities. What seems to be leading the economy are not the cap-weighted indexes, but market internals.

1-InternalsEven while the SPX still rose, resp. went sideways in 2015, market internals began to deteriorate (here shown: S&P hi/low percent, NYSE a/d line, SPX stocks above 200 & 50 day ma) – click to enlarge. Continue reading


Submitted by J.C. Collins  –  philosophyofmetrics

Seal2“A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913.”  – From Wikipedia

The number twelve frequently occurs among ancient peoples, who in nearly every case had a pantheon consisting of twelve demigods and goddesses presided over by The Invincible One, who was Himself subject to the Incomprehensible All-Father.  This use of the number twelve is especially noted in the Jewish and Christian writings.  The twelve prophets, the twelve patriarchs, the twelve tribes, and the twelve Apostles – each group has a certain significance, for each refers to the Divine Duodecimo, or Twelvefold Deity, whose emanations are manifested in the tangible created Universe through twelve individualized channels.”  -Manly P. Hall, The Secret Teachings of All Ages

In the ancient mysteries there is a ritualistic procession which describes the path from confusion and despair to enlightenment and exultation.  This process places the individual, or groupings of individuals, such as nations, on a journey of hardship and suffering, only to come out the other end liberated and illuminated.

It is perhaps symbolic of the birth into the material world and onset of suffering and confusion which ensues.  When the righteous path is followed through life the spirit is able to rise up out of the ashes of despair and ignorance, and become one with the universal power of creation.

Or so the story goes.

In the song Carry on Wayward Son, the band Kansas sings:

Once I rose above the noise and confusion, just to get a glimpse beyond this illusion, I was soaring ever higher, but I flew too high.”

Patience with the process of initiation in this life is a key element of the journey itself.  When we reach too high, and too far, we falter and fall victim to the entrapments of the false self.  Most stumble through this life never realizing that life itself is an initiation.

When we come to understand, and accept the reality that life is an initiation, the pieces begin to fit and purposeful meaning fills our hearts and minds with a quiet wisdom which does not need to be spoken. Continue reading

Uncertain Times Sees Germany Repatriate 200 Tonnes Of Gold Bullion

Submitted by Mark O’Byrne  –  GoldCore

Germany’s Bundesbank released further detail on its gold holdings on Wednesday, saying it transferred 210 tonnes of gold back to the country last year from vaults in Paris and New York.

Frankfurt is now the largest storage location for the country’s gold reserves after New York, it said in a statement, reports Henry Sanderson in the FT.


GoldCore Comment
The Bundesbank’s repatriation of 200 tonnes of gold bullion reaffirms the fact that central banks today still view gold as a vital safe haven reserve currency and monetary asset. It also indicates a lack of trust between central banks and specifically with the Federal Reserve, whose gold reserves have not been audited in over 50 years and many have doubts about the integrity of those reserves.

In these uncertain times, it is prudent to follow the advice of Dr. Marc Faber by becoming your own central bank. It is essential to own gold in allocated, segregated accounts in the safest vaults in the world, in the safest jurisdictions in the world.

Further repatriation of gold by other central banks from the Fed and the Bank of England has the potential to create the long awaited short squeeze and a sharp revaluation in the gold price as central banks are forced to enter the market to acquire the physical bullion that they thought they already owned. A lack of supply and very robust – likely record demand – in the coming financial and monetary crisis will exacerbate this revaluation in gold.

We believe, like the German Bundesbank and people who are buying gold in record amounts, that only gold bullion in your possession or allocated gold stored in secure locations such as Singapore, Hong Kong and Zurich can be viewed as a safe-haven asset.

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• US Crude Inventories Are The Highest Since the 1930s (ZH)
• Chart Going Back To 1861 Shows Oil Isn’t Insanely Cheap Right Now (MW)
• Why the Fed Has the Stock Market Spooked (WSJ)
• China Shares Flounder Again, But ‘Real Economy’ Sound Says State Media (Reuters)
• China’s Central Bank Makes Most Massive Cash Infusion In 3 Years (WSJ)
• China Sharpens Efforts to Halt Money Outflow (WSJ)
• Hysteria Over China Has Become Ridiculous (AEP)
• Yuan Bears Denounced as Delusional, Doomed by China State Media (BBG)
• China’s 2016 Stock Losses Rise To $1.8 Trillion (Reuters)
• China’s Smartphone Slump Bites Apple (WSJ)
• Xi Urges Sound Planning For Supply-Side Structural Reform (Xinhua)
• Pay Attention To Long-Term Debt Cycle (Ray Dalio)
• The EU’s Banking Union: A Recipe For Disaster (Thomas Fazi)
• EU’s Too-Big-to-Fail Bank Bill Won’t Be Withdrawn (BBG)
• Five of Six Brokers in Libor Trial Are Acquitted by London Jury (BBG)
• EU Says Greece ‘Seriously Neglected’ Schengen Border Duties (Kath.)
• Sweden To Expel Up To 80,000 Rejected Asylum Seekers (Guardian)
• European Commission in 2013: Refugee Push-Backs Are Illegal (EURActiv)
• Europe Faces Another Million Refugees This Year: UN (BBG)
• Refugee Boat Sinks Off Greek Island; 7 Bodies Recovered (AP)