And yet another baffle with absolute and unbelievable BS economic number is out, this time the Empire Fed index which magically spiked from -1.43 to 7.84 on expectations of a 0.00 print. We say magically, because besides the headline number, virtually everything else was down! To wit: New Orders down, Shipments down, Unfilled Orders down, Delivery Time down, Inventories down, Number of Employees down, Avg Workweek down, should we continue? The Empire Fed [...]
-COMEX gold depository inventories plummet
-Rush to American Eagle Gold Coins break all records.
-History shows that hyperinflation targets a “Scapegoat.”
Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce.
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce.
Comex Gold Inventory Plummet
Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.
Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up [...]
The reports of massive drainage of Gold and Silver inventories are pouring in from around the world. Now do you understand why the Feds are attacking it so desperately? They need to stop the run before it forces the Comex and others into default! They are totally desperate now!
Over the last 90 days without any announcement, stocks of gold held at Comex warehouses plunged by the largest figure ever [...]
In response to the news today that the economy contracted -.1 percent in the final quarter of last year, Democrats are touting the claim that this is “the best-looking contraction in U.S. GDP you’ll ever see.” The claim was originally made by chief U.S. economist for Capital Economics Paul Ashworth.
“The drag from defense spending and inventories is a one-off. The rest of the report is all encouraging,” Ashworth also claimed.
The Doc sat down with Harvey Organ again for the 3rd and final interview regarding the recent massive cartel intervention in the gold and silver markets post the QE4 announcement, the fiscal cliff, the CFTC’s silver probe, and the unprecedented 20 million oz of silver still standing for December delivery.
Harvey stated that the CFTC’s silver probe has concluded, but they can’t release the findings because it would collapse the entire financial [...]
The Doc sat down with Harvey Organ again for the 2nd of several interviews regarding the recent massive cartel intervention in the gold and silver markets post the QE4 announcement, the fiscal cliff, the CFTC’s silver probe, and the unprecedented 20 million oz of silver still standing for December delivery.
Harvey stated that recent evidence seems to validate his long held suspicions that China is behind the big gold & silver shorts, [...]
Goldman Slashes Q4 GDP Forecast To Just 1%
The latest data has prompted Goldman to cut its Q4 GDP forecast. It now sees just 1% growth.
The key points from Goldman’s Kris Dawsey:
We expect that the positive boost to GDP growth from inventory investment seen last quarter will not persist into Q4.
Weaker inventory series in the monthly business sentiment surveys point to slowing inventory accumulation, and our quarterly models suggest some payback from Q3’s [...]
For much of the year, the big story was that the US economy was the world’s strongest, refusing to succumb to weakness, even as Europe went into crisis, and China flirted with a hard landing.
Because of this, the US stock market was a star performer.
But for the moment, things are doing a 180…
As we wrote earlier, one of the big stories from today’s PMI reports was the strength of the BRICS. China, [...]
CHICAGO PMI RISES TO 50.4 — But Huge Drop In New Orders
from Chicago PMI:
Employment 55.2 vs. 50.35 prior. New orders 45.3 vs. 50.6 prior. Prices paid 70.1 vs. 59.3 prior. Inventories 47.1 vs. 49.6 prior. Supplier deliveries 57.3 vs. 50.4 prior.
Big jumps in supplier delivery times, employment, and prices look to be behind the improved headline read in the Chicago PMI, but the gauge’s best leading indicator – new orders – [...]
by Mike Shedlock, Global Economic Analysis:
Inquiring minds as well as commodity bulls need to consider the likely economic impact of China’s commodity imports and how sustainable those imports are.
For example, please consider China’s Cotton Reserves Enough to Meet Deficit for Six Years
“Cotton stockpiles in China, the world’s biggest importer, are set to climb to about 9 million metric tons this season, enough to cover the country’s deficit for the next six years, [...]
There’s one group that Superstorm Sandy left dry — drinkers.
Floodwaters from the massive hurricane smashed a New Jersey liquor distributor, causing tens of millions of dollars in damage to its supply of top-shelf alcohol, the company said.
Yesterday, a sad mix of liquor and slush puddled on the ground outside Fedway Associates Inc.’s warehouse in Kearny — where the smell of red wine hung in the air as workers piled boxes [...]
RECESSION LOOMS: GDP REVISED DOWN TO 1.3%, DURABLE GOODS COLLAPSE 13%
Our 2nd quarter GDP has just been revised downward from an already anemic 1.7% to a shockingly weak 1.3%. Moreover, orders for durable goods went — as Hot Air’s Ed Morrissey points out – ”over a cliff,” collapsing a full 13%. Morrissey also reports that this is the single largest decrease in over four years and that a subsequent increase in inventories this [...]
From Sober Look:
An article appeared in the New York Times last week that describes the sad state of the U.S. housing market as a closed system that is stuck in a “negative feedback loop”:
New York Times: The economy will not recover until the housing market recovers, and the housing market will not recover until the broader economy recovers – a chicken-and-egg problem reflected, once again, in national housing figures.
And that may [...]
VANCOUVER (Silver Gold Bull) — It’s impossible to cover developments in the global economy without feeling a lot like Alice in Wonderland surrounded by legions of Mad Hatters. This is especially true when covering the realm of anti-logic known as the U.S. economy.
We’re told that the U.S. economy has been experiencing an “economic recovery” for the past 3+ years — led by manufacturing growth — while its energy consumption has [...]
Nothing gets by David Rosenberg, the bearish strategist at Gluskin Sheff.
In his latest Breakfast With Dave note, he points to the inventory/sales ratio which is sending a recessionary signal.
A rising I/S ratio suggests sales are not keeping up with the inventory build.
Lost in yesterday’s excitement over the retail sales report, we got the June data on total business sales and they plunged 1.1% with the weakness rather broadly based. This was (i) [...]
As I wrote in the Weekend Investor cover story, “Is the Real-Estate Rebound for Real?,” this weekend, many indicators are pointing to a bottom forming in the housing market. New-home inventories are at historic lows. Home-builder sentiment has finally turned the corner. And finally, home prices have ticked upfor four months in a row on a seasonally-adjusted basis.
All that might make it tempting to call the “all clear” once and for all. But one [...]
United States of America NWS and NOAA officials warn, Climate Drought Exceeding Predictions Through 2013.
Are ‘you and your loved ones’ going to survive a 53% food and water shortage between August 2012 and beyond January 2013?
The answer is not “No,” but “Hell, No!”
With a 53% shortage in ‘all food, dairy and water’, which this drought is currently doing through the 1st Quarter of 2013, the ‘retail cost’ will in-fact jump [...]
From Pragmatic Capitalism:
I feel bad because I saw this on Twitter in the last hour and now can’t find where I got it from.
But it’s a chart of the Richmond Fed’s orders versus inventories overlapped with the ISM.
As you can see, it’s a correlation that is both very tight and not terribly confidence inspiring…
Read full article…
President Obama’s campaign claim that he rejuvenated the ailing General Motors depends on practices called “overbuilding” and “channel stuffing,” critics say.
Car dealerships’ lots are filling up with unsold trucks and SUVs because GM built more vehicles than it can sell in order to inflate sales claims and artificially boost its profits, The Daily Caller has learned.
The Detroit automotive giant records sales for vehicles in dealers’ inventories before car buyers make their purchases, said Mark [...]
Morgan Stanley’s Hussein Allidina is out with his latest agricultural commodities update.
The news: We are in for a big burn on prices, as record heat and drought roasts corn and soybean crops into oblivion.
“We are raising our 2012/2013 corn and soy forecasts to account for tighter-than-expected balances. Our new price deck implies 3% and 4% upside to the corn and bean curves, respectively. While we expect that corn and soybean prices to average $7.85/bu [...]
By Farid A. Khavari
IT’S TIME TO IMPLEMENT THE CONCEPT OF A ZERO-COST ECONOMY?
Regardless of which economic concepts are employed to run an economy, (Marxism, Keynesianism, Monetarism or any other concepts) they all have one thing in common—eventually, the cost will exceed income/revenue, leading to an overall economic decline
and to poverty; if continued, it will lead to an economic collapse!
The biggest shortcoming associated with these economic systems is the permanently rising [...]
Gains will remain modest, however, as inventories of distressed homes continue to
be worked off. Moreover, the housing recovery remains tenuous and could still be derailed if Europe’s financial problems pull the global economy and the United States back into recession.
Housing vacancies have fallen to 5.5 million and the are 1.61 million homes pending foreclosure or seriously delinquent … for a total of 7.11 million VACANT or soon to be vacant [...]
June 11, 2012, at 1:25 pm
by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
My Dear Friends,
In one corner we have the Exchange stabilization fund and gold banks, their brokers who are clearly in a panic to hold gold below $1600. In the other corner are many central banks elsewhere that fear the viability of their paper currency inventories. In the middle stands the speculators which are basically gambleholics who will [...]
The Defense Department has stopped issuing weapons to thousands of law enforcement agencies until it is satisfied that state officials can account for all the surplus guns, aircraft, Humvees and armored personnel carriers it has given police under a $2.6 billion program, The Associated Press has learned.
The department’s Defense Logistics Agency ordered state-appointed coordinators in 49 states to certify the whereabouts of that equipment that has already been distributed through [...]
From Also Sprach Analyst:
The evidence of a China slowdown, which is somewhat worse (perhaps much worse) than what the market was expecting continues to pile up.
We have got disastrous macro data for April, more and more companies acknowledging slowdown in the market, pathetic loan growth which brought my speculation that debt deflation is a reality, building up of raw material inventories, and perhaps the acknowledgment from the Premier that perhaps [...]
Economic Data Dump Keeps Everyone Confused, Pessimism About Future Increases
We bring you “baffle with bullshit” Tuesday edition, where retail Sales ex-autos and gas miss consensus modestly, but the Empire Manufacturing beats by a mile… even as forward business conditions slide to lowest since October.
Consumer Price Index: monthly change prints at 0.0%, same as expectations of 0.0%; Core CPI +0.2% also same as expected: source
April Retail sales: headline +0.1% same as [...]
That March factory orders declined 1.5% was not very surprising: the market was expecting a decline of 1.6%. However, this is not good news as the prior February increase of 1.3% was revised lower to 1.1%, netting out as a negative two month change. Where this number was troubling is that this 2.6% swing brought the index to its biggest decline since March 2009 when the pumping of trillions started.
4/27/2012 — Russia’s defence exports rose steadily from 2006 to 2011, helping to maintain its position as one of the world’s leading arms suppliers, but increased competition from Western suppliers in Asia combined with continuing structural challenges means that Russia’s ability to maintain its strong record is anything but certain.
Both outgoing president Dmitry Medvedev and president-elect Vladimir Putin have committed to boosting defence spending until 2020. Medvedev outlined procurement plans [...]