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Fans of Central Banking Have an Achilles Heel

Courtesy of ZeroHedge. View original post here.

Submitted by Gold Standard Institute.

by Keith Weiner

 

Most of my writing about the gold standard is about how it works, and how the paper dollar standard doesn’t. A casual conversation I had with someone recently underscored that there is an even stronger argument.

Our opponents, those who support central banking and irredeemable paper money, have to make two cases. One is to defend the theory and practice of central banking, that central bankers are wise and honest and that their debt-based paper money works. They have to argue that the dollar does everything you want money to do, such as hold its value, enable proper accounting, encourage savings, support a stable economy, etc. Well, they can go through the motions and fool the ignorant.

The other is that they have to defend the use of force against innocent people.

Central planners constantly run into the problem that people are not willing cogs. We don’t want to be jammed into the machine where directed. The central planners never have our best interest at heart. Quite the contrary, they seek to sacrifice our property, liberty, goals, and well-being. Supposedly it serves some sort of public good, though it’s never the good of any particular member of the public.

Anyways, no one ever goes along voluntarily. Central planners have to pass laws, in order to do whatever good to us that they feel needs doing. Safely backed by the law, they need not worry about our petty little concerns. They can force the unwilling to obey, under threat of loss of property, liberty, and ultimately life.

If you don’t agree with this, think about what will happen if you refuse to pay your taxes. It may take a few years, but sooner or later, armed agents of the government will come to arrest you. If you don’t want to be arrested, they will force you into handcuffs. If you are able to fight that off, at some point they will shoot you dead.

In the case of irredeemable paper money, there are several ways that the government forces people to use it. One is the capital gains tax on gold. Another is the legal tender law. There are others.

The economic arguments for irredeemable paper and central banking are fallacious and often frivolous. We can and…
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Hillary: “Business Does Not Create Jobs”, Washington Does

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Martin Armstrong via Armstrong Economics blog,

Hillary_Clinton_2016_president_bid_confirmed

We have a very serious problem with Hillary. I was asked years ago to review Hillary’s Commodity Trading to explain what went on. Effectively, they did trades and simply put winners in her account and the losers in her lawyer’s. This way she gets money that is laundered through the markets – something that would get her 25 years today.

People forget, but Hillary was really President – not Bill. Just 4 days after taking office, Hillary was given the authority to start a task force for healthcare reform. The problem was, her vision was unbelievable. The costs upon business were oppressive so much so that not even the Democrats could support her. When asked how was a small business mom and pop going to pay for healthcare she said if they could not afford it they should not be in business. From that moment on, my respect for her collapsed. She revealed herself as a real Marxist.

Now, that she can taste the power of Washington, and I dare say she will not be a yes person as Obama and Bush seem to be, therein lies the real danger. Giving her the power of dictator, which is the power of executive orders, I think I have to leave the USA just to be safe.

Hillary has stated when she ran the White House before regarding her idea of healthcare, “We can’t afford to have that money go to the private sector. The money has to go to the federal government because the federal government will spend that money better than the private sector will spend it.” When has that ever happened?

Hillary believes in government at the expense of the people. I do not say this lightly, because here she goes again. She just appeared at a Boston rally for Democrat gubernatorial candidate Martha Coakley on Friday. She was off the hook and amazingly told the crowd gathered at the Park Plaza Hotel not to listen to anybody who says that “businesses create jobs.”

“Don’t let anybody tell you it’s corporations and businesses create jobs,” Clinton said.

“You know that old theory, ‘trickle-down economics,’” she continued. “That has been tried, that has failed. It has failed rather spectacularly.”

“You know, one of
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Why America Ranks 26th In The Developed World For Math (In 1 Common Core Question)

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Among the 34 OECD countries, the US performed below average in mathematics and is ranked 27th, according to The Program For International Student Assessment (PISA).

 

While the U.S. spends more per student than most countries, this does not translate into better performance (e.g. the Slovak Republic, which spends around $53k per student, performs at the same level as the US, which spends over $115k per student).

PISA adds that students in the US have particular weaknesses in performing mathematics tasks with higher cognitive demands, such as taking real-world situations, translating them into mathematical terms, and interpreting mathematical aspects in real-world problems. But there is good news – a silver lining they offer – “a successful implementation of the Common Core Standards would yield significant performance gains.”

 However, they may have to rethink that after looking at the following…

 

 

Source: The Burning Platform





As Ebola Cases Top 10,000, Obama Says America Can “Beat” The Deadly Virus

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Following the sad death of its first Ebola case, Mali's President has said he will not close his nation's border with Guinea, because "the incident showed it was impossible to completely seal his country."

 

Mali's neighbors, on the other hand, are shutting borders, as Mauritania tries not to become Africa's 7th Ebola-infected country. This brings, according to The WHO, the number of cases of Ebola to 10,141 with 4,922 dead (so far).

 

Americans should not worry though, for the 2nd week in a row, President Obama devoted his address to the subject of Ebola, explaining "basic facts" of how difficult it is to catch (despite the need to enforce mandatory quarantine for healthcare workers) and in 'USA USA USA'-esque language, explains how "Americans can beat" the deadly virus.

*  *  *

As Reuters reports, the death of Mali's first Ebola case will not prompt its to close its borders…

Mali will not close its border with neighbouring Guinea after a two-year-old girl infected with Ebola was brought across the frontier by her grandmother and died in Mali this week, President Ibrahim Boubacar Keita said on Saturday.

 

The girl travelled hundreds of kilometres through Mali – including a stop in the capital Bamako – on public transport, potentially exposing many people to the virus, before she died in the western town of Kayes on Friday.

 

Malian authorities have isolated 43 people, including 10 health care workers who had contact with the child in the town of Kayes, where she was taken for treatment, the W.H.O. said.

 

Keita said that the incident showed it was impossible to completely seal his country off from Ebola in neighbouring Guinea but said he remained calm as the girl's journey and potential contacts had already been traced.

 

"Guinea is Mali's neighbour. We have a shared border that we did not close and we will not close," he told France's RFI radio station.

But Mauritania closed its border with Mali... (via Xinhua)

Mauritania has closed its border with Mali, where an Ebola death was confirmed in the border area this week, a local health official told Xinhua on Saturday.

 

"The authorities of Nouakchott gave instruction to conduct


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PReSeNTING THe LaTeST ZiMBaBWe NoTe

Courtesy of ZeroHedge. View original post here.

Submitted by williambanzai7.





Meet The Millennials: All You Ever Wanted To Know About America’s Youth, In Charts

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

When it comes to the future of the US, the biggest question mark by far is anything relating to the Millennial generation, those Americans born between 1980 and 2000, which happens to be one of the biggest generations in US history.

In fact, the largest US age cohort is currently the 23 year olds. However, Millennials are different from previous generations in many ways. For example, today’s 25-34 year olds are more likely to be minorities (40%) and a higher share of them has college degrees (35%). In addition, they are choosing different fields of study in college: while engineering was in the top five bachelors’ degrees awarded in 1980, in 2010, psychology replaced it in the top five rankings. This student debt-bubble funded college infatuation also happens to be the biggest curse of the Millennials, and as discussed a year ago, “Millennials Are Devastated As American Dream Becomes Nightmare For Most.”

Still, despite their differences, and the over $1 trillion in student debt which is making the US economic recovery virtually impossible, Millennials are in many ways like prior generations. Or rather better be if there is to be any hope of the conventional Keynesian medicine fixing a problem that may be at its core demographic (just like in Japan).

In order to get a better grasp of the wants and needs, as well as problems and liabilities of the Millennial generation, we present various extensive charts that highlight the key issues surrounding those young Americans which are gradually entering their post-college careers only to find pervasive disappointment.

First, as noted, here is the size of the Millennial generation in context:

They may be everywhere, but their job opportunities are limited, and not only in the US…

 

Which is also pushing the labor participation rate lower. Sorry BLS apologists: it has nothing to do with demographics and everything to do with global economic depression.

 

So without job opportunities, Millennials are forced to spend more and more time in a state of suspended occupational animation while hoping for better days.

 

Although as we noted earlier this week, record “student debt” is not just a young person problem any more: increasingly people in their 50s, 60s and 70s are crippled by loans they took out to help…
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NYC Ebola Patient’s Condition Worsens As Fiancee Returns Home

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

New York City health officials have released Morgan Dixon, the 30-year-old fiancée of recently diagnosed Ebola patient Dr. Craig Spencer, to her West 147th Street Manhattan apartment where, as WSJ reports, she will remain under mandatory quarantine. This ‘good’ news comes as New York’s Department of Health issues a statement on the deteriorating condition of Dr. Spencer who “is entering the next phase of the illness, which is anticipated gastrointestinal symptoms.” This was expected apparently, as NYC’s health commissioner Mary Basset noted, “we’ve seen with this disease that it continues to get worse before it gets better.” A large CDC team is actively involved.

 

 

The good news… (via WSJ)

New York City health officials were preparing Saturday to release the fiancée of a recently diagnosed Ebola patient to her Manhattan apartment where she will remain under quarantine.

 

Morgan Dixon, 30 years old, was in close contact with Dr. Craig Spencer since he returned to his New York City home on Oct. 17 from treating Ebola patients in Guinea, officials said, and had been with her fiancé at Bellevue Hospital Center since he was diagnosed with the virus on Thursday.

 

Ms. Dixon was free to leave the hospital Saturday, according to Dr. Bassett. She had no symptoms and had been admitted out of caution, the health commissioner said.

 

Dr. Bassett said she was confident the city had tracked down everyone that Dr. Spencer had come into contact with.

The bad news…Dr. Spencer’s condition deteriorates…

Ebola patient entering next phase of illness, which is anticipated gastrointestinal symptoms, according to joint statement from Health and Hospitals Corp., Department of Health and Mental Hygiene.

 

Patient is awake and communicating

 

Bellevue clinical team is in constant communication with CDC and other leading medical centers such as Emory University Hospital and Nebraska Medical Center

 

Large CDC team has been advising Bellevue staff

 

In addition to required supportive therapy, Bellevue initiated antiviral therapy within hours of admission; also administered


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The Failure Of The Fed’s ‘Wealth Creation’ Mandate (In 1 Simple Chart)

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Having previously shown just who did (and did not) benefit from the resurgence of household net worth, we thought it time to provide the context for why The Fed’s stunningly obvious policy of juicing asset inflation in the hopes of engorging animal spirits among the general population and a renaissance in public spending is a total and utter wealth-inequality-driving farce. As Evergreen Gavekal indicates so obviously, the consumer isn’t fooled by Fed policy; despite a major uptick in household net worth, spending remains anemic.

 

 

Simply put – 3rd time was not the charm… and as is evident the ‘transmission’ to spending is getting less and less effective with each new Fed-driven, cheap/free-money inspired boom (and bust)

 

Source: Evergreen Gavekal





Saturday Humor: How Social Media Reacted To The Queen’s First Tweet

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The Queen unleashed her first tweet on Friday from the official account of the British Monarchy, explaining her pleasure at opening a new exhibit at The Science Museum…

The news media were exultant and instantly went to Social Media for their reaction… Unfortunately for The BBC, they live broadcast a less-than-BBC-esque remark from one @WolfgangDikface

 

The account has since been removed/disabled.

 

h/t usvsth3m





On Europe (Or The 28 Stooges)

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Raul Ilargi Meijer via The Automatic Earth blog,


Russell Lee Sharecropper mother teaching children in home, Transylvania, LA. Jan 1939

Europe is fast turning into a freak comedy show. Very fast. Or maybe we should say it’s always been one, and it’s just that the Larry, Curly and Moe moves are only now coming out in droves. Or maybe, what do I know, we’re just starting to understand how much talent for farce and slapstick the boys from Brussels have always had.

Just Wednesday, I wrote in 40% of Eurozone Banks Are In Bad Shape about a Reuters report based on Spanish source Efe, that claimed 12 banks would fail the ongoing stress tests, results of which are due this Sunday at 12pm CET (their daylight savings time will be over by then). I noted how the indignation expressed over the leaked data by Brussels seemed odd, since in 2014 everything leaks.

Then, I cited Pimco’s global banking specialist, Philippe Bodereau, saying he thought 18 banks would fail, and moreover, almost a third would narrowly pass. Something that according to several sources was important than who actually failed. Because all banks have had many many months to shore up their capital positions, and if they’re now still below or just above the dividing line today, that’s suspect at best.

130 banks were supposed to have been tested, and ‘almost a third’ of that is some number north of 40. Add the 12 to 18 sure failures, and you’re north of 40%.

But today Bloomberg reports on a new draft they have obtained, which raises the numbers even further.

ECB Set to Fail 25 Banks in Review, Draft Document Shows

25 lenders in the European Central Bank’s euro-area bank health check are set to fail the regulator’s Comprehensive Assessment, according to a draft communique of the final results, seen by Bloomberg News. 105 banks are shown passing the review, according to the draft statement. Of the lenders that failed, about 10 will still face capital shortfalls they need to plug, according to a person with knowledge of the matter, who asked not to be identified…

If 25 fail, and ‘almost a third’, i.e. at least 40,…
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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!

 
 

Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Enjoy!

(As usual, use your PSW user name and password to sign in. You may also take a free trial.) 

 

#455292918 / gettyimages.com

 

...

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Zero Hedge

Fans of Central Banking Have an Achilles Heel

Courtesy of ZeroHedge. View original post here.

Submitted by Gold Standard Institute.

by Keith Weiner

 

Most of my writing about the gold standard is about how it works, and how the paper dollar standard doesn’t. A casual conversation I had with someone recently underscored that there is an even stronger argument.

Our opponents, those who support central banking and irredeemable paper money, have to make two cases. One is to defend the theory and practice of central banking, that central bankers are wise and honest and that their debt-based paper money works. They have to argue that the dollar does everything you want money to do, such as hold its value, enable proper accounting, encourage savings, support a stable economy, etc. Well, they can go through the moti...



more from Tyler

Phil's Favorites

Home Prices Drop in 69 of 70 Chinese Cities; Did the Pool of Greater Fools Run Out?

Courtesy of Mish.

China eased purchase restrictions last month ending its four-year campaign to contain home prices. And what a ridiculous campaign it was. Prices are down less than 1% this month and less then 1% year-over-year.

Bloomberg reports China Home-Price Drop Spreads as Easing Doesn’t Halt Fall.

Prices dropped in 69 of the 70 cities in September from August, the National Bureau of Statistics said in a statement today, the most since January 2011 when the government changed the way it compiles the data. They fell in 68 cities in August.

The central bank on Sept. 30 eased mortgage rules for homebuyers that have paid off existing loans, reversing course after a four-year camp...



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Chart School

World Markets Weekend Update: Selloff Ends, Rally Begins

Courtesy of Doug Short.

In last weekend's update, only one the eight indexes on my watchlist posted a weekly gain. This weekend's numbers have reversed. Seven indexes closed the week with a gain and there were some substantial ones at that. Japan's Nikkei erased the previous week's -5.02% plunge with a 5.22% surge. The S&P 500 finished second with a 4.12% advance. China's Shanghai Composite was the sole loser, down 1.66%.

In fact, the Shanghai Composite remains the only index on the watch list in bear territory -- the traditional designation for a 20% decline from an interim high. The index is down 33.68% from its August 2009 peak. See the table inset (lower right) in the chart below.

Here is a look at 2014 so far....



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All About Trends

Mid-Day Update

Reminder: David 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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Insider Scoop

UPDATE: Morgan Stanley Reiterates On ResMed Following 1Q15 Earnings Report

Courtesy of Benzinga.

Related RMD Morning Market Movers Qualcomm Announces New Connected Health Collaborations at Connect 2014

In a report published Friday, Morgan Stanley analyst Sean Laaman reiterated an Equal-Weight rating on ResMed (NYSE: RMD), and raised the price target from $46.19 to $49.57.

In the report, Morgan Stanley noted, “Currency headwinds and part quarter release of the S10 downplayed expectations ahead of the result. Despite this, RMD beat on US revenue driv...



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Market Shadows

Bill Ackman's Big Pharma Trade Is Making Wall Street A Super Awkward Place

 

#452525522 / gettyimages.com

Intro by Ilene

If you're following Valeant's proposed takeover (or merger) of Allergan and the lawsuit by Allergan against Valeant and notorious hedge fund manager William Ackman, for insider trading this is a must-read article. 

Linette Lopez describes the roles played by key Wall Street hedge fund owners--Jim Chanos, John Paulson, and Mason Morfit, a major shareholder in Valeant. Linette goes through the con...



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Option Review

LUV Options Active Ahead Of Earnings

There is lots of action in Southwest Airlines Co. November expiry call options today ahead of the air carrier’s third-quarter earnings report prior to the opening bell on Thursday. Among the large block trades initiated throughout the trading session, there appears to be at least one options market participant establishing a call spread in far out of the money options. It looks like the trader purchased a 4,000-lot Nov 37/39 call spread at a net premium of $0.40 apiece. The trade makes money if shares in Southwest rally 9.0% over the current price of $34.32 to exceed the effective breakeven point at $37.40, with maximum potential profits of $1.60 per contract available in the event that shares jump more than 13% to $39.00 by expiration. In September, the stock tou...



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Sabrient

Sector Detector: Sharp selloff in stocks sets up long-awaiting buying opportunity

Courtesy of Sabrient Systems and Gradient Analytics

Last week brought even more stock market weakness and volatility as the selloff became self-perpetuating, with nobody mid-day on Wednesday wanting to be the last guy left holding equities. Hedge funds and other weak holders exacerbated the situation. But the extreme volatility and panic selling finally led some bulls (along with many corporate insiders) to summon a little backbone and buy into weakness, and the market finished the week on a high note, with continued momentum likely into the first part of this week.

Despite concerns about global economic growth and a persistent lack of inflation, especially given all the global quantitative easing, fundamentals for U.S. stocks still look good, and I believe this overdue correction ultimately will shape up to be a great buying opportunity -- i.e., th...



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Digital Currencies

Goodbye War On Drugs, Hello Libertarian Utopia. Dominic Frisby's Bitcoin: The Future of Money?

Courtesy of John Rubino.

Now that bitcoin has subsided from speculative bubble to functioning currency (see the price chart below), it’s safe for non-speculators to explore the whole “cryptocurrency” thing. So…is bitcoin or one of its growing list of competitors a useful addition to the average person’s array of bank accounts and credit cards — or is it a replacement for most of those things? And how does one make this transition?

With his usual excellent timing, London-based financial writer/actor/stand-up comic Dominic Frisby has just released Bitcoin: The Future of Money? in which he explains all this in terms most readers will have no tr...



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OpTrader

Swing trading portfolio - week of October 20th, 2014

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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Pharmboy

Biotechs & Bubbles

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

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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