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Daily Digest 11/5 - The Circle of Gold, Wall St. Down After Energy Slide

Thursday, November 5, 2015, 9:56 AM


The S&P 500 Buyback Index Signaled A Market Top In 2000 And 2007–And Its Falling Again (Aaron M.)

"We’re really looking at it as one piece of the puzzle,” Wald said. “These stocks have to underperform for longer as well to be a bigger drag for the market.”

Stockman on Fox Business: ‘The war on savers has to stop!’ (Herman J.)

“The war on savers has to stop,” said Stockman. “In fact, if you saved a quarter of a million in forty years of work, you’re getting interest equal to one Starbucks cappuccino a day.”

The Circle of Gold (GE Christenson)

“QE to Infinity, followed by Gold balancing the balance sheets of the sovereign balance sheet disasters. Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold. It is just that simple.”

Four Reasons Former Morgan Stanley Chief Global Strategist Joe McAlinden Likes Hard Assets, Especially Gold (Kevin J.)

“After five decades at this game, I have come to believe there are rare moments in market cycles when prudence dictates going against the crowd.

Based on extended valuations, lagging small caps and a more hawkish path toward the normalization of interest rates, the really big decline I have been looking for is, in my view, still lurking dead ahead. Decades of experience have taught me that trying to catch a falling knife is a dangerous undertaking. Nonetheless, there are a number of reasons why overweighting hard assets like gold looks to me like the right decision at this juncture.”

Right Up There With France: U.S. Is #2 Among OECD Countries In “Social Expenditures” Relative To GDP (Aaron M.)

The focus on direct government spending, however, creates the impression that the US does not engage in the business of redistributing wealth to the degree of other OECD-type countries. But this is not the case. When we consider tax incentives, benefits, and mandates, the picture is very different.

This Decision Could Kill the Economy (Tiffany B.)

The arrangement gives retailers plenty of flexibility to deal with the ebb and flow of seasonal demand. But it also gives them an “out” when it comes to wage disputes. If the contract staffing company at a particular warehouse suddenly finds itself dealing with a newly organized workers union, the retailer can end the staffing company’s contract and bring in a new firm.

Global Commodity Deflation Strikes Due North: Canadian Slump Triggers Huge Capital Flight (Aaron M.)

According to BofA’s Kamal Sharma, Canada’s basic balance – a combination of the capital and the current account: a measure of national accounts that spans everything from trade to financial-market flows – swung from a surplus of 4.2% of GDP to a deficit of 7.9% in the 12 months ending in June. That’s the fastest one-year deterioration among 10 major developed nations.

Report: U.S. aircraft carriers could become ineffective (Adam L.)

The rise of new powers now threatens to push the Navy farther from shore and beyond the range of the aircraft the carriers hold, according to the report written by naval expert Jerry Hendrix of the Center for New American Security. "This push back would limit the service's ability to project power and thus undermine the credibility of the United States."

China's answer to Boeing and Airbus arrives (richcabot)

China's first C919 passenger jet makes its debut on Tuesday, an important step in the country's airline ambitions. Reuters Pete Sweeney says there's still a long way to go for Chinese plane makers to compete with the worldwide dominance of Airbus and Boeing.

NASA Study: Mass Gains of Antarctic Ice Sheet Greater than Losses Antarctic Peninsula (LesPhelps)

“We’re essentially in agreement with other studies that show an increase in ice discharge in the Antarctic Peninsula and the Thwaites and Pine Island region of West Antarctica,” said Jay Zwally, a glaciologist with NASA Goddard Space Flight Center in Greenbelt, Maryland, and lead author of the study, which was published on Oct. 30 in the Journal of Glaciology. “Our main disagreement is for East Antarctica and the interior of West Antarctica – there, we see an ice gain that exceeds the losses in the other areas.” Zwally added that his team “measured small height changes over large areas, as well as the large changes observed over smaller areas.”

Germany to retest VW cars as scandal pushes Berlin to act (richcabot)

The German government's announcement followed a VW statement on Tuesday that it had understated the level of carbon dioxide emissions in around 800,000 cars sold mainly in Europe, and consequently their fuel usage. This means affected vehicles are more expensive to drive than their buyers had been led to believe.

Wall St. ends down after energy slide, Yellen comments (richcabot)

The market is consolidating after a big rally, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "The gains have been strong over the past five weeks, and we're due for more of a breather here," he said.

The Dow Jones industrial average .DJI fell 50.57 points, or 0.28 percent, to 17,867.58; the S&P 500 .SPX lost 7.48 points, or 0.35 percent, to 2,102.31; and the Nasdaq Composite .IXIC dropped 2.65 points, or 0.05 percent, to 5,142.48.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/4/15

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."


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Monsanto has bought off everyone with influence!


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monsanto bought 'em all

a long time ago. lets all burn thru the energy and take 'em down with the ship... MaMa will survive to fight another day.

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Grow your own

And to hell with them.

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Preamble to TPP - Fixed it for ya

"ESTABLISH a comprehensive regional agreement that promotes economic disintegration to liberalise monopolize trade and investment, bring economic growth (f***ing growth, Dave, we need more growth!) and social benefits chaos, create destroy new opportunities for workers and businesses, contribute to raising lowering living standards, benefit screw consumers, reduce increase poverty and promote sustainable growth a globalist NWO"


Edit: We should pass it quickly however so that we can find out what's in it.

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India's Gold Stash Dwarfs Fort Knox Hoard and Modi Wants It

Sell yer gold before India's demand peaks!  Put it into the financial system, where it can be more productive, just like when the Delian League's gold was moved from the League's shared treasury in Delos, over to Athens, where it was spent.

India's Gold Stash Dwarfs Fort Knox Hoard and Modi Wants It

India’s prime minister on Thursday unveiled three state-backed plans to try to tap the stockpiles of the precious metal to trim physical demand and reduce imports by providing people with alternative avenues for investment. At an event in New Delhi, Modi announced the formal start of a gold-deposit plan, a sovereign-bond program linked to the metal’s price and introduction of locally minted coins, some bearing the face of Mahatma Gandhi.

India vies with China as the world’s largest gold consumer, and Modi’s administration wants to draw more of the holdings into the financial system to trim purchases from overseas and boost the country’s economic resilience. Bullion will be a help to India’s growth only when it enters the banking system, and large imports should be discouraged, Finance Minister Arun Jaitley said at the event in the capital, which comes a week before nationwide demand peaks.

And this is nice too, from a previous article

India moved a step closer to selling gold-backed bonds and allowing banks to tap idle jewelry and bars held by households and temples to cut reliance on imports.


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Cliff Notes version out soon?  I will poke around in this thing though.....Aloha, Steve.

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TPP Feature Voices interview?
thatchmo wrote:

Cliff Notes version out soon?  I will poke around in this thing though.....Aloha, Steve.

I would also love to hear some condensed form of what the TPP and these other trade agreements may mean. What I've heard doesn't sound good at all, but I feel I don't know much about them.  I'd definitely appreciate an OTC, Featured Voices interview or some other piece on the TPP, if/when possible, and it might attract a lot of new people to PP as well.

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I do not envy...

...the poor soul that has to read and decipher the TPP.

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NASA STUDY: Antartic Ice

The link I posted on the NASA study was not the source where I first heard about the study.  

I found out about the study on a Drudge link to what would be referred to as a denier article on Global Warming.  Not surprisingly, the article presented the increase in Antarctic ice mass as proof that Global Warming is a hoax.

The studies author, Dr. Jay Zwally, who would be described by deniers as a doomsayer, expressed concern  that the study would add fuel to the deniers position.  I believe Dr. Zwally is the "scientist" who made the canary in a mine reference regarding the Greenland ice situation.

These polarized opinions are the dominating content when it comes to climate study news articles.  Unfortunately, they obscure knowledge of the climate change issue and quite probably have a distorting impact on the science.  

Readers of the study, seem primarily interested in whether it supports or opposes their preconceived notions regarding climate change.

A better approach would be for all to consider whether the source of the study was reliable, the science sound and if so, what information does it add to our understanding of the global climate.  Does is warrant modifications to our predictions.


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Keep the debate alive!

I agree with you Les:

A better approach would be for all to consider whether the source of the study was reliable, the science sound and if so, what information does it add to our understanding of the global climate.  Does it warrant modifications to our predictions.

I think it's very important to keep the debate alive.  That's the scientific way.  Didn't a famous scientist once say, "A conclusion is just where we decided to quit thinking?"  Once we "settle" on the science, we are utterly and truly doomed (as that means we have closed our minds and blinded ourselves). Toward that end, I wish we could all quit using pejorative terms meant to shut down the debate because "our side" is obviously right (eg. deniers and doomsayers).

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Antarctic ice

Zwally has a different method and has continually been an outlier on estimating Antarctic ice changes. This doesn't make him wrong, it just shows the amount of uncertainty in the measurements. He could be right and lots of other people wrong, but things to keep in mind though.

1. There is no doubt about the amount of sea level change we have experienced.

2. If Zwally is right about Antarctica then everyone is wrong about Greenland in the opposite direction. In other words, Greenland would need to be twice as bad as we currently think it is in terms of melting.

The ice melt question is zero sum when related to sea level change. The water has to come from somewhere. About half the change is from temperature changes of the ocean water, the rest is from Greenland, Antarctica (maybe), and mountain glaciers(lesser extent).

i am literally in a hotel lobby waiting for to head back out into burning peat swamps with my team so that is all I have time for right now.


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Repost Of Today's News

Yellen Doesn't Rule Out Negative Interest Rates in the Future

Wall Street Journal-20 hours ago
Yellen Doesn't Rule Out Negative Interest Rates in the Future. Central banker says she doesn't see the need for Fed to consider lowering rates below zero now.

Czechs Keep Currency Cap, Zero Rate as Policy Makers Weigh Risks

Bloomberg-2 hours ago
The regulator hasn't ruled out using negative interest rates, but they “aren't a preferred tool,” Tomsik and Holub said. The bank “doesn't need to actively think of ...

Swedish regulator considering debt-to-income ceiling for mortgages

Reuters-7 hours ago
Mortgage borrowing rose at its fastest pace in more than four years in September, fuelled by negative interest rates as the central bank fights fears of deflation.

Russian Banks Face More Pain

Bloomberg-3 hours ago
The central bank says it will continue to purge weaker players. ... Insolvent borrowers would be happy to take a loan, but banks are not ready to lend to them.”.

Draghi: ECB will consider how to step up stimulus program

MarketWatch-1 hour ago
The European Central Bank president, Mario Draghi, said the ECB's governing council would consider how to intensify its stimulus program if it concludes the ...

Albanian central bank cuts rate, promises 2016 stimulus

Reuters-21 hours ago
"The supervisory board believes that meeting the goals of the Bank of Albania requires an increase of the monetary stimulus and maintaining a stimulative policy .

Carney Signals Bank of England Rate Can Stay Low as China Drags

Bloomberg-1 hour ago
The MPC also offered fresh analysis of how its exit from emergency stimulus might occur, having previously said that gilt sales will only start after a number of ...

BOJ policymakers fret over hit from China slowdown: October minutes

Reuters-14 hours ago
Markets had been rife with speculation the BOJ could expand its already massive stimulus program at either of the two rate reviews last month, as soft exports ...

BOJ needs to adapt QQE for a long struggle to raise wages

euronews-8 hours ago
TOKYO (Reuters) – The Bank of Japan's former top economist said it should modify its stimulus programme to suit a protracted battle against deflation because ...

Canadians owe $1.88 trillion, 5% more than last year

CBC.ca-19 hours ago
Canadian households owed $1.88 trillion in outstanding debt in September, as the high cost of housing in some markets pushed borrowing levels higher, ...

Ontario's deficit target at 'significant risk,' budget watchdog warns

The Globe and Mail - ‎14 hours ago‎
In a report Wednesday, Financial Accountability Officer Stephen LeClair projected the province could be in line for a $5.2-billion deficit next year and a $3.5-billion deficit in fiscal year 2017-18, the year the Liberals have promised to balance the ...

National debt sees one-day record increase after debt limit suspended

USA TODAY - ‎17 hours ago‎
So on paper, the national debt had been frozen at $18.1 trillion since March, as the Treasury instead deferred payments to pension funds and borrowed from reserve accounts in order to keep the government running. But once President Obama signed a ...

Illinois faces millions in extra debt costs from budget fiasco

STLtoday.com-3 hours ago
Illinois last sold debt in April 2014 for a top yield of 4.5 percent, about 1.1 ... Not everyone expects Illinois will stay a stranger to the $3.7 trillion municipal market ...

The Bear Case for China Sees PBOC Following Fed to Zero Rates

Bloomberg - ‎19 hours ago‎
Like the U.S. and U.K. before it, China needs to face life with excess debt. China's total government, corporate and household debt load as of mid-2014 was equal to 282 percent of the country's total annual economic output, according to McKinsey & Co.

LA school district headed for major funding shortfall, panel warns

Los Angeles Times-17 hours ago
The Los Angeles Unified School District is facing a looming, long-term deficit that could force the system into bankruptcy, a panel of experts has concluded in a ...

Deflation Risks May Warrant Radical New Central-Bank Thinking ...

Wall Street Journal (blog)-10 minutes ago
The Bank of Japan and other central banks around the world may need to try radical new easy-money policies to stave off the rising specter of deflation and ...

EconomyDallas credit rating takes hit from pensions

Financial Times-14 hours ago
The GO debt downgrade is due to the city's rising pension liabilities and lack of a sufficient plan to address them in the near term. The stable outlook reflects our ...

Fifteen Million Self-Employed Americans to Next President: "Rising Healthcare ...

MarketWatch - ‎14 hours ago‎
What keeps them from reaching their savings goal? Fifty-one percent said they want the next President to reduce healthcare costs with 26 percent saying rising healthcare costs have reduced their ability to save and 35 percent adding the rising cost of ...

Doctors, Hospitals Won't Accept Obamacare Marketplace Plans

U.S. News & World Report - ‎Nov 4, 2015‎
Government health officials worked diligently this year to improve consumer experience on Healthcare.gov and make sure people know what they are getting for their money when they pick health insurance. But one thing is out of the government's control ...

Health Co-Ops' Failures Spur Finger-Pointing

Wall Street Journal - ‎18 hours ago‎
The Omaha, Neb., metal-fabricating company is one of thousands of small firms that relied on untested health-care cooperatives, which were intended to lower costs for consumers under the health law by giving established insurers more competition. But ...

Brazil Real Rises as Intervention Offsets Fiscal Voting Delay

Bloomberg-2 hours ago
Brazil's real swung between gains and losses as the central bank's plan to ... rating cuts after Standard & Poor's downgraded Brazil's debt to junk in September.

State lawmakers set sights on Detroit schools rescue after putting ...

Michigan Radio-5 hours ago
... millions of state dollars to help Detroit Public Schools pay off its crushing debt. ... is asking lawmakers to approve the DPS rescue and restructuring package by ...

Employees face higher health costs as open enrollment season starts

MarketWatch-5 hours ago
This growing burden is cutting into their retirement savings, according to a ... set the minimum deductible level for health savings account eligibility for 2015 at ...


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Bitcoin is surging. Here's one reason why

Bitcoin is surging. Here's one reason why (USA Today)

A vision appears in my mind...of Satoshi, FoNeStAr and the Bernanke, sitting on a beach in Cuba sipping Mai-Tai's and laughing their asses off right about now.

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Satoshi, FoNeStAr and the Bernanke,

I know who Ben Shalom Bernanke is, Satoshi is easy. But who is fonestar?

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Incoming. ( But not the Big one)

Loss of radar and a few transformers so far. Due to hit Saturday.

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Unrelated and off topic. Please ignore!

How the elite brainwash the masses. 



Instead of throwing out the tv, the masses go out and buy bigger ones!

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Gail Tverberg latest post

Gail Tverberg knocks it out of the park again;


"World economy depends on an energy-related debt bubble"

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