Archive for 2012

Gold Confiscation, Inflation, And Suddenly Virtuous Central Bankers

Courtesy of ZeroHedge. View original post here.

Submitted by testosteronepit.

Wolf Richter   www.testosteronepit.com

When the world's major central bankers get together, as they did at the Fed conference in Washington this weekend, ironies abound. Off to the side was Turkey’s government that had just floated a plan to get its people to turn in their physical gold in exchange for “certificates,” a first if still voluntary step in what may become a process of gold confiscation. In the background was the Fed, which in January had promised to keep interest rates at record lows through 2014, come hell or high water, after having purchased $2.3 trillion in bonds. And in the foreground were the money printers of Japan and Europe.

“If low interest rates induce investment projects that are only profitable at such interest-rate levels, this could have an adverse impact on productivity and growth…,” said Masaaki Shirakawa, Governor of the Bank of Japan, the champion of deficit monetization and ultra-low interest rates.

He was worried, he said, about “side effects” such as rising commodity prices—a non sequitur after he'd announced in in mid-February that the BOJ would plow another ¥10 trillion ($128 billion) into asset purchases, having already done three waves of asset purchases in 2011. And then we learned that board members fretted that this might be considered monetization of Japan's deficit. Um, yes.

Not to be outdone, Jean-Claude Trichet, ex-President of the ECB, did his own fretting. Under him, the ECB had purchased crappy Eurozone sovereign bonds despite a treaty that prohibits it. And now he worried that these bond purchases by central banks have become part of a new “permanent regime,” and that it could create “behavioral contagion”—something that has already happened. “I think we have to reflect on that,” he said belatedly.

Back to Turkey: it found a different solution for its own out-of-control budget deficit. Like that of Japan, the US, and other countries, Turkey’s deficit, at 10% of GDP, has become part of the “permanent regime.” But rather than deal with it the hard and honest way—cut spending and increase tax collections—Turkey is grasping for alternatives. Hence the plan to bamboozle its citizens into handing over their hidden stashes of physical gold in return for what would certainly be pretty certificates. And as an additional incentive, gold-deposit accounts would earn interest.

When…
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Guest Post: How To Think Like A Mad Man, Find Your Edge & Risk Little For Lots

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Thomas Gresham of Gresham’s Law

How To Think Like A Mad Man, Find Your Edge & Risk Little For Lots

The enigma that is eccentricity can be unravelled by grasping of this single statement; that which you perceive is both a matter of the object of your perception (in this case; the eccentric person) and your apparatus of perception. Eccentricity, then, is as much a quirk of the popular mind as it is of a particular person. So with the assumption that you seek creativeness and intrigue — here’s how to think eccentrically, find your edge and risk little for lots.

 

Eccentric People

Eccentricity over the ages. Click to enlarge.

‘How to think’:

It may sound peculiar that contrary thinking is required to achieve creative thoughts… This, however, becomes self-evident when we realize that thinking the way someone else thinks results in mimicry — a “copy-cat” requires the minimum of creative thought… Therefore, the inference is that to achieve any creativeness, some change has to be made. From this, it stands to reason that the optimum in creativeness must approach the maximum change… and the maximum change must be close to the opposite.

Zuce Kogan, Founder of the Creative Thinking Institute

  1. Rid Yourself of Nebulous Terms – Define, Redefine & Refine.

    Unless you’re an orator or something it’s highly likely that nebulosity is your enemy. If you speak and think in vague terms, then simple, logical deductions are likely to evade you. But since life involves doing one thing or another, chances are that you’ll default to linking concepts in the ‘default’ way — the way suggested by the crowd. In that case it is likely that the succession of vague, emotive images will govern your action.

     

    The power of words is bound up with the images they evoke, and is quite independent of their real significance. Words whose sense is the most ill-defined are sometimes those that possess the most influence. Such, for example, are the terms democracy, socialism, equality, liberty, etc. whose meaning is so vague that bulky volumes do not suffice to precisely fix it. Yet it is certain that a truly magical power is attached to those short syllables, as if they contained the


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North Korean Rocket Trajectory Revealed

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Yesterday afternoon, Barack Obama who is currently in Suth Korea, briefly was within bullet range (if behind bulletproof glass) of North Korea when he stood on the edge of the DMZ separating the two feuding countries. A few minutes later he left and told the world that “Bad behaviour will not be rewarded” referring to the imminent launch of North Korea’s Unha-3 rocket scheduled for a test launch in April. He added that “I will also note that every time North Korea has violated an international resolution, the Security Council resolution, it has resulted in further isolation, tightening of sanctions, stronger enforcement. I suspect that will happen this time as well.” Alas, we doubt that Obama’s warnings will have much of an impact and that in a few weeks NK will go ahead and hit the launch button undeterred, in the process forcing Japan to scramble its Aegis destroyers and take other countermeasures as discussed last week, in case the missile “veers of course.” But just what is the trajectory? Courtesy of North Korea Tech, we now know the secret path the North Korean rocket is expected to take. All we can say is there better not be strong Westerly winds.

More from North Korea tech:

North Korea’s Unha-3 rocket, scheduled for launch next month, will drop to earth in two stages off the western coast of South Korea and to the east of Luzon Island in the Philippines, according to documents submitted by the country to the International Maritime Organization.

 

The documents, obtained by NorthKoreaTech.org, were sent to the IMO’s London headquarters from the DPRK’s embassy in the U.K. They carried the name of “Ko Nung Do,” who is identified as director general of the DPRK’s Maritime Administration.

 

Some of the information restates what has already been disclosed by the country: that the launch would take place from a satellite launch site in Cholsan County of North Pyongan Province during a five day period from April 12th to 16th.

 

They also include some new information: that the launch could take place anytime between 7am and noon local time (2200 to 0300 GMT); and include the coordinates of the projected drop zones for the two-stage rocket.

 

The rocket’s path takes it over the western tip of South


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An Annotated Paul Brodsky Responds To Bernanke’s Latest Attempt To Discredit Gold

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Last week, Bernanke’s first (of four) lecture at George Washington University was entirely dedicated to attempting to discredit gold and all that sound money stands for. The propaganda machine was so transparent that it hardly merited a response: those away from the MSM know the truth (which, simply said, is the “creation” of over $100 trillion in derivatives in just the first six months of 2011 to a record $707 trillion - how does one spell stability?), while those who rely on mainstream media for the news would never see an alternative perspective – financial firms are not among the top three sources of advertising dollars for legacy media for nothing. Still, for those who feel like the Chairman’s word need to be challenged, the following extensive and annotated reply by QBAMCO’s Paul Brodsky makes a mockery of the Fed’s full on assault on gold, and any attempts by the subservient media to defend it. To wit: “Has anyone asked why so many powerful people are going out of their way to discredit an inert rock? We think it comes down to maintaining power and control over commercial economies. After professionally watching Fed chairmen cajole, threaten, persuade and manage sentiment in the markets since 1982, we argue this latest permutation is understandable, predictable and, for those willing to bet on the Fed’s ultimate success in saving the banking system (as we are), quite exciting.… Gold is no longer being ignored and gold holders are no longer being laughed at. “The Powers That Be” seem to have begun a campaign to discredit gold.”

From QBAMCO

BB Gun

“First they ignore you, then they laugh at you, then they fight you, then you win.”
- Mohandas Karamchand Gandhi

As gold holders with fairly comprehensive views of global monetary policies and central banking we were asked to comment about the first of four installations of Ben Bernanke’s lecture series at George Washington University, entitled “The Federal Reserve and the Financial Crisis”. Despite thinking the lecture was woefully incomplete, diversionary and oftentimes quite disingenuous, our initial reaction about responding was to let it go. We think our anticipated macroeconomic outcome will be ignored and denied by public policy makers up until the time they are forced to adopt it and take ownership of it. The math and political expediency…
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Exterran to Receive Approximately $112 Million in Connection with Sale of Venezuelan Joint Venture Assets

Courtesy of Benzinga.

Exterran Holdings (NYSE: EXH) announced Sunday that WilPro Energy Services Limited and WilPro Energy Services (PIGAP II) Limited, the joint ventures owned by subsidiaries of Exterran and Williams (NYSE: WMB), have completed the sale of the El Furrial and PIGAP II assets to PDVSA Gas, S.A. in connection with the 2009 nationalization of those assets. After satisfying amounts owed to the WilPro joint ventures’ lenders and taking into account other closing adjustments, Exterran received an initial payment of approximately $37.6 million in cash at closing. The remaining amount of approximately $74.8 million due to Exterran is payable in periodic cash payments through the first quarter of 2016.


For more Benzinga, visit Benzinga Professional Service, Value Investor, and Stocks Under $5.





DRI Corporation Announces Plans to Sell Operations Under Section 363 of Chapter 11 of the Bankruptcy Code

Courtesy of Benzinga.

DRI Corporation (TBUS) announced Sunday that it has filed in Eastern District of North Carolina Bankruptcy Court for sale of its assets and operations under Section 363 of Chapter 11 of the U.S. Bankruptcy Code.

As previously announced in a press release dated April 15, 2011, DRI Corporation’s Board of Directors formed a Special Committee to consider and evaluate the Company’s strategic alternatives. The Special Committee, which retained the investment banking firm of Morgan Keegan & Company, oversees this process on behalf of the Company’s Board of Directors and shareholders.


For more Benzinga, visit Benzinga Professional Service, Value Investor, and Stocks Under $5.





Previewing Next Week’s Events

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Next week will be relatively light in economic reporting, and with no HFT exchange IPOs on deck, and the VVIX hardly large enough to warrant a TVIX type collapse, it may be downright boring. The one thing that will provide excitement is whether or not the US economic decline in March following modestly stronger than expected January and February courtesy of a record warm winter, will accelerate in order to set the stage for the April FOMC meeting in which Bill Gross, quite pregnant with a record amount of MBS, now believes the first QE hint will come. Naturally this can not happen unless the market drops first, but the market will only spike on every drop interpreting it for more QE hints, and so on in a senseless Catch 22 until the FRBNY is forced to crash the market with gusto to unleash the NEW qeasing (remember – the Fed is now officially losing the race to debase). For those looking for a more detailed preview of next week’s events, Goldman provides a handy primer.

From Goldman Sachs

The data releases last week were a bit mixed, with strong export orders in Taiwan and continued strong US Jobless claims, but weaker flash PMIs in Europe and China. In contrast to the PMI, the French business confidence survey improved in March.

In the coming week, it will be interesting to watch if German IFO index also contradicts the surprisingly weak Flash Eurozone PMI, similar to the INSEE already. In Europe, the focus will also be on the Euro area flash CPI, where we expect some moderation to 2.5%yoy as the decline in non-core components will likely continue. Aside from the inflation numbers, there will be an informal EcoFin Meeting on Friday and Saturday, where an increase of the ESM is likely to be discussed again.

In terms of US activity data, the focus will be on the Chicago PMI, Durable Goods and Personal Income. Though we do expect a technical rebound in the durable good orders after the weakness in the previous report, we think the Chicago PMI could slip by more (to 60 from 64) than consensus expects. Overall, the message from US activity data may therefore remain mixed outside the still-strong labour market data.

In terms of Asian activity…
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Order Granting Oakland County’s Motion for Summary Judgment Against Fannie/Freddie FHFA RE Transfer Taxes on Deeds

Courtesy of ZeroHedge. View original post here.

Submitted by 4closureFraud.

OAKLAND COUNTY, ET AL.,
Plaintiffs,

vs

FEDERAL HOUSING FINANCE AGENCY
AS CONSERVATOR FOR FEDERAL
NATIONAL MORTGAGE ASSOCIATION AND
FEDERAL HOME LOAN MORTGAGE COMPANY;
FEDERAL NATIONAL MORTGAGE ASSOCIATION;
AND FEDERAL HOME LOAN MORTGAGE COMPANY,
Defendants.
________________________________/

ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND
DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

Excerpts

D. An Exemption from All Taxation Covers Only Direct Taxes, Not Excise Taxes

Plaintiffs rely upon the Supreme Court’s decision in Wells Fargo for the
proposition that an exemption from “all taxation” does not cover excise taxes such as
the Michigan Transfer Taxes. 485 U.S. 351. Plaintiffs say that Wells Fargo made clear
that an exemption from all taxation covers only direct taxes, not excise taxes. The
Court agrees.

In Wells Fargo, the Supreme Court considered whether certain items of personal
property–“Project Notes”–were exempt from the federal estate tax. In the late 1930s,
Congress passed the Housing Act, 50 Stat. 888 et seq., which empowered state and
local governments to issue tax-free obligations called Project Notes to finance housing
projects. 485 U.S. at 353. Congress provided that “[Project Notes], including interest
thereon, . . . shall be exempt from all taxation now or hereafter imposed by the United
States.” Id. at 355. Discussing the exemption, the Supreme Court stated:

Well before the Housing Act was passed, an exemption of property from all
taxation had an understood meaning: the property was exempt from direct
taxation, but certain privileges of ownership, such as the right to transfer the
property, could be taxed. Underlying this doctrine is the distinction between an
excise tax, which is levied upon the use or transfer of property . . . and a tax
levied upon the property itself. The former has historically been permitted even
where the latter has been constitutionally or statutorily forbidden. Id.

After reviewing the case law, the Supreme Court held that the exemption from all
taxation did not exempt the Project Notes from excise taxes such as the estate tax. The
Court noted that where Congress had, on other occasions, exempted property from
estate taxation, it generally referred specifically to…
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Rachel Maddow | Jeff Thigpen – Standing up to banks, putting who-owns-what back in order

Courtesy of ZeroHedge. View original post here.

Submitted by 4closureFraud.

In a TRMS exclusive, Rachel Maddow reports on one North Carolina town standing up to the big banks that destroyed the housing market and the lives of many local families with foreclosures that may turn out to be fraudulent.

~

www.4closureFraud.org

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The First Crack: $270 Billion In Student Loans Are At Least 30 Days Delinquent

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Back in late 2006 and early 2007 a few (soon to be very rich) people were warning anyone who cared to listen, about what cracks in the subprime facade meant for the housing sector and the credit bubble in general. They were largely ignored as none other than the Fed chairman promised that all is fine (see here). A few months later New Century collapsed and the rest is history: tens of trillions later we are still picking up the pieces and housing continues to collapse. Yet one bubble which the Federal Government managed to blow in the meantime to staggering proportions in virtually no time, for no other reason than to give the impression of consumer releveraging, was the student debt bubble, which at last check just surpassed $1 trillion, and is growing at $40-50 billion each month. However, just like subprime, the first cracks have now appeared. In a report set to convince borrowers that Student Loan ABS are still safe – of course they are – they are backed by all taxpayers after all in the form of the Family Federal Education Program – Fitch discloses something rather troubling, namely that of the $1 trillion + in student debt outstanding, “as many as 27% of all student loan borrowers are more than 30 days past due.” In other words at least $270 billion in student loans are no longer current. That this is happening with interest rates at record lows is quite stunning and a loud wake up call that it is not rates that determine affordability and sustainability: it is general economic conditions, deplorable as they may be, which have made the popping of the student loan bubble inevitable. It also means that if the rise in interest rate continues, then the student loan bubble will pop that much faster, and bring another $1 trillion in unintended consequences on the shoulders of the US taxpayer who once again will be left footing the bill.

From Fitch:

Fitch believes most student loan asset-backed securities (ABS) transactions remain well protected due to the government guarantee on Family Federal Education Program (FFELP) loans. The Federal Reserve Bank of New York recently reported that as many as 27% of all


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Zero Hedge

Caught On Tape: Hong Kong's Longest Escalator Suddenly Reverses At High-Speed; Injures 18

Courtesy of ZeroHedge. View original post here.

Rescue workers rushed to Langham Place (a bustling shopping mall in Mong Kok, Hong Kong) after the one of longest indoor escalators in the city stopped and reversed at high speed on Saturday afternoon.

Video footage obtained by ...



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Members' Corner

More Natterings

Courtesy of The Nattering Naybob

[Click on the titles for the full articles.]

A Quick $20 Trick?

Summary

Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:

  • Last time out, Sinbad The Sailor, QuickLogic.
  • GlobalFoundries, Jha, Smartron and cricket.
  • Quick money, fungible, demographics, QUIK focus.

Last Time Out

Monetary policy is just one form of policy that effects capital,...



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ValueWalk

Be Prepared For Increased Volatility

By Royce Funds. Originally published at ValueWalk.

Co-CIO Francis Gannon explains what increasing volatility could mean for investors, and how it could benefit active managers.

Watch the video here.

...

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Phil's Favorites

America can't be first without Europe

 

America can't be first without Europe

Courtesy of Earl Anthony Wayne, Hamilton College and Daniel S. Hamilton, Johns Hopkins University

On March 25, European Union leaders celebrate the 60th anniversary of their founding treaty, a central pillar of the structure set up in the aftermath of World War II to solidify peace, prosperity and partnership in Europe.

Over the last 60 years, the EU (and its predecessors) has served as an essential U.S. partner: for example, by enhancing economic opportunity for U.S. companies in Europe and ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Top Story: On health reform, Donald Trump followed Republican leaders into a ditch (Andrew Prokop, Vox)

The cancellation of the planned House vote on the American Health Care Act Friday is a devastating defeat for President Trump, marking the first major legislative setback of his administration.

Yet in some ways, it might also come as a relief to him — because the Republican health bill, crafted mainl...



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Kimble Charting Solutions

Fund flows of this size could mark a top, says Joe Friday

Courtesy of Chris Kimble.

A year ago flows into ETFs were extremely low, actually the lowest in years, as many stock market indices were testing rising support off the 2009 lows. The crowd wasn’t adding money to ETFs as lows were taking place. In hindsight, this was a mistake by the majority. Below I look at ETF flows over the past few years with an inset chart of the S&P 500.

CLICK ON CHART TO ENLARGE

Nearly three months into this year, fund flows have surpassed mone...



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Chart School

Indecision Strikes

Courtesy of Declan.

It was no real surprise to see indices slow down in their recovery. Across the board doji mark a balance between buyers and sellers. The one index which bucked the trend a little was the Russell 2000. It staged a modest recovery which brought it back to former support turned resistance. However, technicals remain firmly bearish, and will stay this way even if there are additional gains.

The S&P closed on light volume with a doji below resistance. The narrow intraday trading range offers a low risk opportunity with a break and ...

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OpTrader

Swing trading portfolio - week of March 20th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



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Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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Biotech

The Medicines Company: Insider Buying

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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