From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. One point I’d like to mention is that gold has started to rally. I will be doing a special article on gold next week that will share some insight into what is happening and what you could see if this trend continues. Please continue to send me news articles and I will include them in the summary each week. Also, the latest articles and news are added daily at the Lindsey Williams Online Facebook Page. Please ‘LIKE’ the page and share it with others. I have included a widget on the right hand side of this page also. I am also creating a Lindsey Williams Online YouTube page that will include regular videos and content.
Latest News From January 29, 2016 to February 4, 2016:
- Gold sets new three-month high as investors shun risky assets
Gold hit three-month highs on Wednesday as the dollar slid versus the euro and European shares fell sharply, prompting investors to seek shelter in assets perceived as safer. Data showing the U.S. economy’s services sector expanded in January at a slower pace than expected overshadowed stronger-than-expected U.S. ADP private payrolls data, helping knock the dollar to a 14-week low against the euro. Spot gold was up 0.9 percent at $1,138.46 at 1618 GMT, having earlier touched its strongest since Nov. 2 at $1,139.90.
- Dollar Posts Biggest 2-Day Drop Since March as 2016 Rally Erased
The dollar posted its biggest two-day drop since March, extending a decline that wiped out its rally at the start of the year. The greenback fell against all of its 16 major peers except the pound, which was weighed down by the Bank of England ’s unanimous vote to keep interest rates unchanged. Signs of a slowing U.S economy have hurt the dollar by derailing wagers on diverging policies between central banks. Currency traders are catching up to the bond market, where 10-year yields sank to the lowest in a year on Wednesday and futures sent the strongest signal yet that traders expect the Federal Reserve to stand pat on rates in 2016.
- Job cuts surged 218% in January
Layoff announcements surged 218% from December to January, led by the retail and energy sectors. The latest monthly report from the staffing firm Challenger, Gray and Christmas on planned job showed that US employers in January reported 75,114 planned job cuts, up 42% year-on-year. Retailers moved the needle on this data point the most, particularly Walmart, which announced plans to close 269 stores across America.
- US productivity falls sharply in fourth quarter
U.S. nonfarm productivity fell in the fourth quarter at its fastest pace in more than a year, leading to a jump in labor-related production costs. The Labor Department said on Thursday that productivity, which measures hourly output per worker, declined at a 3.0 percent annual rate, the biggest drop since the first quarter of 2014. Productivity rose by a downwardly revised 2.1 percent rate in the third quarter. Economists polled by Reuters had forecast productivity falling at only a 1.8 percent rate last quarter after expanding at a previously reported 2.2 percent pace in the third quarter.
- Germany Unveils “Cash Controls” Push: Ban Transactions Over €5,000, €500 Euro Note
It was just two days ago that Bloomberg implored officials to “bring on a cashless future” in an Op-Ed that calls notes and coins “dirty, dangerous, unwieldy, and expensive.” You probably never thought of your cash that way, but increasingly, authorities and the powers that be seem determined to lay the groundwork for the abolition of what Bloomberg calls “antiquated” physical money. We’ve documented the cash ban calls on a number of occasions including, most recently, those that emanated from DNB, Norway’s largest bank where executive Trond Bentestuen said that although “there is approximately 50 billion kroner in circulation, the Norges Bank can only account for 40 percent of its use.”
- Hyper Inflation Is Here
Last week I wrote an article for King World News which showed that hyperinflation is on its way in many emerging markets. Soon it will also reach the US, Europe, Japan, China and many other countries. Hyperinflation has nothing to do with demand but is the effect of economic mismanagement leading to money printing and currency collapse. This trend started over 100 years ago with the creation of the Fed. Since then all major currencies have declined 97-99% in real terms. The best way to measure inflation over time is in gold. For 5,000 years, gold is the only currency that has survived. All other currencies have been printed to death. The trend of currency debasement is now accelerating in the periphery. For example, in Russian Rubles and Brazilian Real gold is up 1,300% in 16 years and in Argentine Pesos gold is up 6,000% since 1999. Also, gold now buys more oil than it has ever done in history.
- Comex: Paper Gold “Dilution” Hits A Record 542 For Every Ounce Of Physical
There had been an eerie silence at the COMEX in recent weeks, where after registered gold tumbled to a record 120K ounces in early December nothing much had changed, an in fact the total amount of physical deliverable aka “registered” gold, had stayed practically unchanged at 275K ounces all throughout January. Until today, when in the latest update from the COMEX vault, we learn that a whopping 201,345 ounces of Registered gold had been de-warranted at the owner’s request, and shifted into the Eligible category, reducing the total mount of COMEX Registered gold by 73%, from 275K to just 74K overnight.
- Another Nail In The US Empire Coffin: Collapse Of Shale Gas Production Has Begun
The U.S. Empire is in serious trouble as the collapse of its domestic shale gas production has begun. This is just another nail in a series of nails that have been driven into the U.S. Empire coffin. Unfortunately, most investors don’t pay attention to what is taking place in the U.S. Energy Industry. Without energy, the U.S. economy would grind to a halt. All the trillions of Dollars in financial assets mean nothing without oil, natural gas or coal. Energy drives the economy and finance steers it. As I stated several times before, the financial industry is driving us over the cliff. The Great U.S. Shale Gas Boom Is Likely Over For Good.
- Here’s Which Stocks Sovereign Wealth Funds Will Be Selling In 2016
Back in August we explained why the headline figures for EM FX reserves paint an incomplete picture with regard to the UST liquidation among commodity producers and emerging market reserve managers. As Credit Suisse wrote last year, “for oil exporting nations, central bank official reserves likely underestimate the full scale of the reversal of oil exporters’ ‘petrodollar’ accumulation because a substantial part of their oil proceeds has previously been placed in sovereign wealth funds (SWFs), which are not reported as FX reserves (with the notable exception of Russia.” In other words, official data on FX reserves don’t tell the whole story. Not by a long shot. In fact, “oil exporting countries hold about $1.7trn of official reserves but as much as $4.3trn in SWF assets.”
- The Unleashing Of QQE And Global Economic Meltdown
The Keynesian elite gathered in Davos Switzerland this past week to pontificate on global economic issues and to strategize the engineering of The Fourth Industrial Revolution. This new so called “revolution” includes a discussion on the future of Artificial Intelligence. Judging by the comments coming from most of the list of attendees, it seems obvious the intelligence on display was indeed faux. But the most important takeaway from this venue was that central bankers have made it clear to the markets that the level and duration of quantitative counterfeiting know no bounds…
- It Has Begun!
Since August 18th, we have stated that the markets had shifted, major indexes would begin to decline, and a NEW gold bull market was imminent! And now, one of the best-leading indicators is pointing to a roaring bull market for gold. The two most heavily traded gold stocks, Barrick Gold and Newmont Mining, are having one hell of a move since last summer. The Bull Market has Already Begun!
- ALERT: Nomi Prins Issues Dire Warning – We May Have Just Witnessed The Trigger For The Next Global Collapse
Today Nomi Prins, the keynote speaker who recently addressed the Federal Reserve, IMF and World Bank, issued a dire warning to King World News that we may have just witnessed the trigger for the next global collapse. Eric King: “We saw the global financial system come unhinged as a result of the mortgage-backed securities scheme from 2007 – 2009. Do all the derivatives and junk bonds tied to the energy sector have the potential to cause a similar level of panic and chaos in the global banking and financial system?” Nomi Prins: “It does have that potential for a similar reason, which is that a very small amount of underlying collateral in the energy sector and other industries that are dependent on profits from the energy sector for their own revenues, a small number of those can create a much larger ripple effect…
- The Fed Wants to Test How Banks Would Handle Negative Rates
As interest rates turn negative around the world, the Federal Reserve is asking banks to consider the possibility of the same happening in the U.S. In its annual stress test for 2016, the Fed said it will assess the resilience of big banks to a number of possible situations, including one where the rate on the three-month U.S. Treasury bill stays below zero for a prolonged period. “The severely adverse scenario is characterized by a severe global recession, accompanied by a period of heightened corporate financial stress and negative yields for short-term U.S. Treasury securities,” the central bank said in announcing the stress tests last week.
- Europe Continued Gold Repatriation at Faster Rate in 2015
Germany ramped up its gold repatriation project last year, joining other European nations bringing gold home. The trend underscores the importance of holding physical gold within easy access. Germany’s Bundesbank transferred more than 210 tons of gold back into the country from vaults in Paris and New York last year. According to the Financial Times, with last year’s transfers, Frankfurt now ranks as the largest storage location for the country’s reserves after New York.
- New “Tech Tattoos” Will Be Tied To Medical And Banking Information
Apparently a tech company called Chaotic Moon is looking to take advantage of the 20% of humans who already have a proclivity toward tattoos. For the rest? An appeal to safety and security, of course, and an assurance that a future offering could be a “Band-Aid-like package.” Chaotic Moon’s dual-purpose tattoo is comprised of electro conductive ink embedded with sensors and microchips. Here is the reasoning why this product is so desirable according to one of the developers, Eric Schneider, who mentions the banking aspect to CBSNewYork.
- Ford To Cut Hundreds Of Jobs In UK And Germany
Car maker Ford is to shed hundreds of jobs in the UK and Germany as part of a programme to save $200m (£138m) a year. The group said it was launching a voluntary redundancy programme as it looked to slash costs across its European business, in the face of mounting regulatory costs. It comes after Ford recently revealed that its European operation had returned to profit for the first time in four years in 2015. Production and product development workers will not be affected by the job cuts. The company said they were mainly likely to go in administration and marketing.
- ISM New York Tumbles Most Since August As Revenues Crash
While Chicago’s business outlook managed a miraculous bounce in January, New York did not. ISM New York printed 54.6, plunging most since August from December’s 62.0 level. The extremely noisy time series continues to swing, this time lower, as the underlying components deteriorate with Revenues collapsing to at least 3 year lows.
- Biggest part of economy growing at slowest pace in two years, ISM finds
Companies in the U.S. service sector such as retail, banking and health care grew in January at the slowest pace in almost two years, adding to a drumbeat of data suggesting the economy has softened. The Institute for Supply Management said its nonmanufacturing index fell to 53.5% from 55.8% in December. Economists polled by MarketWatch had forecast a 55.2% reading. Any number over 50% indicates more businesses are expanding instead of contracting, but the ISM service index has dropped three straight months and is at the lowest level since February 2014.
- Lloyds Banking Group to cut 1,755 jobs and close 29 branches
Lloyds Banking Group is cutting 1,755 jobs and closing 29 branches as part of a plan by its chief executive, António Horta-Osório, to cut costs as he prepares the bank for privatisation. Staff were told about the job losses, which cover large parts of the group, on Wednesday, but union officials said they hoped that the reductions could be achieved by voluntary means. Horta-Osório is continuing with the cost-reduction programme even though the chancellor, George Osborne, has admitted that he cannot press on with a sale of the government’s remaining Lloyds shares to the public because of the market turmoil, which has knocked the bank’s share price.
- BOJ Kuroda says can ease more, devise new tools
Bank of Japan Governor Haruhiko Kuroda said the central bank has ample room to expand stimulus further and is prepared to cut interest rates deeper into negative territory, signalling a readiness to act again to hit his ambitious inflation target. “If we judge that existing measures in the toolkit are not enough to achieve (our) goal, what we have to do is to devise new tools,” Kuroda said in a speech at a seminar on Wednesday (Feb 3). “I am convinced that there is no limit to measures for monetary easing,” he said. Governor Kuroda also countered criticism that the BOJ was running out of ammunition to accelerate inflation, which has ground to a halt due to slumping oil costs, saying negative rates won’t hamper the bank’s efforts to gobble up government bonds.
- Venezuela is on the brink of a complete economic collapse
The only question now is whether Venezuela’s government or economy will completely collapse first. The key word there is “completely.” Both are well into their death throes. Indeed, Venezuela’s ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it’s hard to see that getting any better for them any time soon — or ever. Incumbents, after all, don’t tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.
- The $3 Trillion Question – Why China should not devalue its currency
Buffeted by a slowing economy, a falling stock market, and a rising tide of money leaving the country, China is flirting with weakening its currency, the renminbi (RMB). Despite repeated — and very high-level — pledges to maintain its value, Beijing quietly let the RMB slip 5 percent against the U.S. dollar in 2015. Many see its decision in December to switch the RMB’s peg from the dollar to a basket of currencies as a back-door way to piggyback on the weakening of other currencies against the dollar. Meanwhile, a growing chorus of economists, hedge funds, and policymakers are saying that China must “go with the market” and let its currency fall to save its stumbling economy. “China should stop resisting Renminbi depreciation. The currency is overvalued,” tweeted economist Jeffrey Sachs. In mid-January, at the World Economic Forum in Davos, Switzerland, Goldman Sachs President Gary Cohn agreed China has little choice: “They may have to do something in the next six months.… Do I believe they will end up devaluing the currency? I do.”
- The End Of Plan A: The Big Reset & $8000 Gold
Willem Middlekoop, author of The Big Reset – The War On Gold And The Financial Endgame, believes the current international monetary system has entered its last term and is up for a reset. Having predicted the collapse of the real estate market in 2006, (while Ben Bernanke didn’t), Middlekoop asks (rhetorically) -can the global credit expansion ‘experiment’ from 2002 – 2008, which Bernanke completely underestimated, be compared to the global QE ‘experiment’ from 2008 – present? – the answer is worrisome. In the following must-see interview with Grant Williams, he shares his thoughts on the future of the global monetary system and why the revaluation of Gold is inevitable…
- Full Summary Of Chinese Actions To Prevent An All-Out Economic Collapse
Last summer, China unleashed an unprecedented array of measures – up to and including the arrest of “malicious short sellers” and prominent hedge fund mangers – to prevent its stock market bubble from bursting. It failed. A few months later, the chaos has spilled over from the relative containment of the capital markets and has engulfed not only the country’s FX reserves, and capital account, but also the entire economy. As a result, China’s government has gone all in, and as Bloomberg reports, is stepping up efforts to ward off a potential financial crisis, warning bank executives that their jobs are on the line unless they control risks and putting restrictions on an increasingly popular way of evading capital controls. These moves come in response to China’s slowest economic growth in a quarter century fueled concerns that bad debts will cripple the banking system and a catalyst for why virtually every hedge fund is now short the Yuan.
- The Big-Oil Bailouts Begin
Despite a bounce this week, low oil prices continue to sow fear, uncertainty, and mayhem across the emerging market complex. On Wednesday, it was leaked that the IMF and World Bank would dispatch a team to oil and gas-dependent Azerbaijan to negotiate a possible $4 billion emergency loan package in what threatens to become the first of a series of global bailouts stemming from the tumbling oil price.
- This Silver Investor is “Hell Bent on Taking the Precious Metals Battle Back to the Banksters”
I see a connection to what happened during the 85 cent silver flash crash and NIRP. It’s tenuous but there are linkages to any flash crash. The formalization of negative interest rates evolved in Europe for several reasons, and just migrated to Japan. I’m certain it’ll come to the US once NIRP’s wrecked its toll in these GDP heavy economies. The EU project with it’s failing currency, bank debt, leverage, business disabling socialist friction, crushingly high taxes, and thuggish control polices were quite predictable 5 years ago. Even before that time the issues of uncontrolled borders and infiltration of migrants began to press on the movement of people and currency as the situation grew slowly to critical mass.
- Puerto Rico wants to erase half its debt
Puerto Rico has a new plan to get out of its massive debt crisis: Use a big eraser. The island’s taxpayers are currently on the hook to pay back about $50 billion. On Monday, Puerto proposed cutting that nearly in half to $26.5 billion. So far, Puerto Rico’s creditors are not impressed. “It’s frustrating, and it doesn’t feel like a credible offer,” a person close to major creditors told CNNMoney.
- Retail Apocalypse: 2016 Brings Empty Shelves And Store Closings All Across America
Major retailers in the United States are shutting down hundreds of stores, and shoppers are reporting alarmingly bare shelves in many retail locations that are still open all over the country. It appears that the retail apocalypse that made so many headlines in 2015 has gone to an entirely new level as we enter 2016. As economic activity slows down and Internet retailers capture more of the market, brick and mortar retailers are cutting their losses. This is especially true in areas that are on the lower portion of the income scale. In impoverished urban centers all over the nation, it is not uncommon to find entire malls that have now been completely abandoned. It has been estimated that there is about a billion square feet of retail space sitting empty in this country, and this crisis is only going to get worse as the retail apocalypse accelerates.
- Federal debt hits $19 trillion; new record set
The federal government is now officially $19 trillion in debt, according to the latest figures released by the Treasury Department Monday that show the Obama administration crossed that ignominious line late last week. President Obama took office with the debt at $10.6 trillion, and has added more than $8 trillion during his seven years in the White House — a record pace that the Congressional Budget Office says is likely to continue.
- ALERT: Legend Warns Global Governments Are Now Preparing For Total Collapse
Egon von Greyerz: “Eric, 25% of government bonds are now negative around the world. On Friday morning Bank of Japan was the latest country to introduce negative rates. There are now 13 countries with yields up to 2 years being negative and 10 countries with negative yields up to 10 years. I have been saying for a very long time that Japan is bankrupt and negative rates will of course not save their economy…
- British scientists granted permission to genetically modify human embryos
British scientists have been granted permission to genetically modify human embryos by the fertility regulator. The Francis Crick Institute could begin the controversial experiments as early as March after the Human Fertilisation and Embryology Authority (HFEA) gave the green light this morning.
- PETER SCHIFF: We’re going to have a serious recession and negative interest rates before the election
Based on today’s GDP release, it appears that the US economy is slowing but not near any sort of massive collapse. Peter Schiff begs to differ. The CEO and chief global strategist for Euro Pacific Capital, and noted perma-bear, said that serious economic destruction is just a few months away. “I think the Fed is going to have negative interest rates before the election because we’re going to be in a serious recession,” Schiff told Business Insider on Friday. In fact, Schiff said that we may already be in recession and this one is going to be a doozy. “We’re in worse shape now than we were in 2007,” he said.
- US hedge funds mount new attacks on China’s yuan
Some of the biggest names in the hedge-fund industry are piling up bets against China’s currency, setting up a showdown between Wall Street and the leaders of the world’s second-largest economy. Kyle Bass’s Hayman Capital Management has sold off the bulk of its investments in stocks, commodities and bonds so it can focus on shorting Asian currencies, including the yuan and the Hong Kong dollar.
- Court rules Michigan has no responsibility to provide quality public education
In a blow to schoolchildren statewide, the Michigan Court of Appeals ruled on Nov. 7 the State of Michigan has no legal obligation to provide a quality public education to students in the struggling Highland Park School District.
- Oil Production Cuts Unlikely to Reverse Plunging Prices
A cut in oil production by Organization of the Petroleum Exporting Countries (OPEC) member states, as well as other oil exporters, is unlikely to make a difference in terms of the low oil prices, experts told Sputnik.
- Peter Boockvar – Japan Just Launched An Economic Kamikaze Against Its Citizens And The World – Own Gold
“I only have a few things to say about what Mr. Kuroda and 4 other members of the BoJ decided to do (4 dissented). It’s a tax on money that banks will just pass on to their customers. Wanting higher inflation without faster wage growth is a tax on consumers. And, the BOJ just amped up the global currency battles. I call this economic Kamikaze and I’ll say for the millionth time, I just don’t get the bear case on gold in light of this with fiat currency having such a large bulls-eye target on it. Believing that generating higher inflation is a needed precursor to faster economic growth is nonsense. Inflation reads are a symptom of the activity of the underlying economy. I’ll also repeat the irony that markets love it when the BoJ and ECB further debase their currencies but freak out when the Chinese also want a weaker yuan.”
- Mainstream Media Starting to Sound the Recession Warning Siren
Ever since the Federal Reserve raised interest rates in December, Peter Schiff has insisted that the state of the US economy didn’t justify the move. In fact, on numerous occasions, Peter has said the US may already be in a recession. If not, we are on the verge of entering one.
- Bank of Japan, in a Surprise, Adopts Negative Interest Rate
As Japan’s economic doldrums have lingered, its leaders have tried a number of tricks over the years, from increasing government spending to flooding the financial system with cash. With the global economy looking increasingly fragile, Japan is now taking a more aggressive step by cutting interest rates below zero on Friday. The policy — which means banks are essentially paying for the privilege of parking their money — represents a last resort for a country that has struggled through a quarter-century of weak growth. In theory, negative rates will push banks to lend more to companies, which would then spend and hire.
- EU on brink: Germany’s biggest bank records shock losses risking economic RUIN of Eurozone
GERMANY could force the European Union into ruin after Deutsche Bank’s share price plunged following the country’s biggest lender’s first annual loss since the financial crisis. The German lender posted a full year loss of £5.1 billion (€6.8bn) on Thursday – higher than the expected €6.7bn million. With losses of €2.1bn in the fourth quarter of 2015-16, fears of the entire eurozone toppling are becoming an increasing reality.
- World Bank and IMF in emergency BAILOUT talks to save countries from bankruptcy over oil
TUMBLING oil prices are plunging emerging economies into financial crisis, sparking what could be the start of a global economy meltdown. The International Monetary Fund (IMF) and the World Bank are extremely worried about the financial stability of Brazil, Venezuela and Ecuador, which are heavily reliant upon oil profits. And the two organisations are now set to discuss an emergency fund of a possible $4billion emergency to bailout Azerbaijan in what risks to become the first bailout of a country due to oil. Iran’s neighbour has been thrown into a currency crisis thanks to falling prices.
- 80% Stock Market Crash To Strike in 2016, Economist Warns
Several noted economists and distinguished investors are warning of a stock market crash. Billionaire Carl Icahn, for example, recently raised a red flag on a national broadcast when he declared, “The public is walking into a trap again as they did in 2007.” And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.” Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively. Even the Royal Bank of Scotland says the markets are flashing stress alerts akin to the 2008 crisis. They told their clients to “Sell Everything” because “in a crowded hall, the exit doors are small.” Stocks like Apple, will plunge.
- Marc Faber: Market Crash Will Rival 1987’s Massive Drop
Marc Faber, publisher of the Gloom, Boom & Doom Report, said markets could see a sudden crash similar the one in 1987, when the Dow Jones Industrial Average fell about 23 percent in one day. “[The market] will remain very volatile because interventions with fiscal and monetary policies, instead of lowering volatility they postpone it, and then it explodes,” he said to CNBC. “The average stock in the U.S. is already down 26 percent from its 52-week high and there are a lot of stocks that are down 50 percent or more. The indices have hidden the weakness beneath the surface and basically the market has been weak the whole time.”
- Analysis: Behind the global stock market plunge of 2016
Global equity markets have been on a rollercoaster ride since the opening sessions of 2016. The violent lurch lower in stocks was initially triggered by fears that an economic slowdown in China, the world’s second largest economy, was spinning out of control. But it was the spectacular collapse in oil prices that really lent impetus to the January sell-off. “Fear, not economic fundamentals, sparked the frenzied sell-off in China as the new year got under way which then spread to global markets and the oil price slide has compounded the pessimism,” said Beijing-based economist Chen Chen, at the Economist Intelligence Unit.
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