by James Mackenzie
(Reuters) – The eurozone faces a real risk of deflation, with medium and long-term inflation expectations now at historically low levels, European Central Bank governing council member Ignazio Visco said on Friday.
Noting that the outlook for economic growth has weakened across the euro zone, Visco, who is also governor of the Bank of Italy, said 5-10 year inflation expectations had fallen below 2 percent, the ECB’s level for price stability.
“We are not in deflation but we cannot ignore the concrete risk of it,” he said, in a speech to a conference in Rome.
Continue Reading at Reuters.com…
by Scott Wright
Elephants are the world’s largest land animals. And though there aren’t many, they can still be found scattered across the planet. In the mining industry, super-large-sized deposits are often referred to as elephants. Like the animal, these deposits aren’t all that common. But also like the animal, they can still be found.
Elephant country is somewhere miners tend to gravitate towards in their hunt for meaningful discoveries, as elephants can usually be found in herds. And one of the world’s most prolific gold herds is found in British Columbia’s Golden Triangle.
The Golden Triangle, also known as the Stewart district, is located in northwestern BC.
Continue Reading at ZealLLC.com…
by Bill Bonner
Curing a Debt Problem with More Debt
The Fed’s QE isn’t dead. But it’s off the job. For now. ZIRP (zero-interest-rate policy) is still at work. The Fed says it will keep short-term interest rates near zero for “considerable time.”
Stocks didn’t crash. The Dow fell only 31 points. Does this mean that the economy is stronger than we think… and that the Fed can take away the punchbowl without shutting down the party?
We wait to find out… safely on the sidelines. Yesterday, we picked up an issue of the Financial Times – the so-called pink paper due to its distinctive color. We wondered how many wrongheaded, stupid, counterproductive, delusional ideas one edition can have.
Continue Reading at Acting-Man.com…
by Simon Black
John Anderson, an American tourist from San Clemente, California, was driving down a poorly-maintained highway when he saw flashing lights in his rearview mirror.
After a brief exchange with the local police officer, Anderson was shocked when the cop started searching his vehicle.
Anderson had $25,180 in US dollar cash in the car, which by the way was not a crime according to the local laws.
When the cop saw it, he told Anderson that we would take it and threatened him with arrest if he protested.
Continue Reading at SovereignMan.com…
by David Stockman
David Stockman’s Contra Corner
This is just plain sick. Hardly a day after the greatest central bank fraudster of all time, Maestro Greenspan, confessed that QE has not helped the main street economy and jobs, the lunatics at the BOJ flat-out jumped the monetary shark. Even then, the madman Kuroda pulled off his incendiary maneuver by a bare 5-4 vote. Apparently the dissenters——Messrs. Morimoto, Ishida, Sato and Kiuchi—-are only semi-mad.
Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year—-a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%.
Continue Reading at DavidStockmansContraCorner.com…
by Jordan Roy-Byrne, CMT
The Daily Gold
Last week we argued that the underperformance of the gold miners during Gold’s rebound was a bad sign. Since then the miners have plunged to new lows while Gold appears to be at the doorstep of a major breakdown below $1180. It shouldn’t be a surprise as it would simply be following the miners and Silver. The current bear market is getting very long in the tooth but it is not yet over. We see more losses ahead before a potential lifetime buying opportunity.
The HUI Gold Bugs Index is obviously very oversold but its not yet at strong support. It closed Thursday at 164 but should fall another 9% to support at 150.
Continue Reading at TheDailyGold.com…
by Dan Norcini
Trader Dan Norcini
The greenback, as illustrated by the USDX, has managed to poke through the chart resistance level at 87 in today’s session. The overnight, surprise action by the Bank of Japan, has given currency traders a strong reason to hammer the Yen lower and they are doing exactly that.
The Euro is holding a bit better and is only down some .7% compared to the 2.5+% beating that the yen is taking, but both majors are down against the Dollar and that has enabled the greenback to finally better that tough chart level noted.
Continue Reading at TraderDanNorcini.Blogspot.ca…
by Monty Guild with Tony Danaher
Last week, Federal Housing Finance Agency (FHFA) director Mel Watt announced two measures designed to spur U.S. mortgage lending, as the U.S. housing market continues to lag. He aimed to ease Dodd-Frank legislation governing when banks could be forced to repurchase sub-par mortgages they’d sold to government sponsored housing giants Fannie Mae and Freddie Mac. He also suggested that FHFA might guarantee loans with down-payments as low as 3 percent.
Watt, as FHFA director, controls policy for Fannie and Freddie, which have been under Federal conservatorship since their near-death experiences during the financial crisis — one of the largest Federal interventions in financial markets in U.S. history.
Continue Reading at FinancialSense.com…
Price rises edge up in October, though data provide little relief that the 18-nation bloc will avoid slipping into a deflationary trap.
by Szu Ping Chan
Eurozone inflation edged up in October, providing some relief for the European Central Bank as it fights to prevent the single currency bloc from sliding into a Japanese-style deflationary trap.
Prices rose by 0.4pc this month, compared with an increase of 0.3pc in September, according to Eurostat.
The rise was driven by stronger price rises in the services sector, higher food prices and a shallower fall in energy costs. October’s inflation rate was also in line with economists’ expectations.
However, a measure of core inflation that stripped out volatile elements such as food and energy, as well as alcohol and tobacco, fell to 0.7pc October, from 0.8pc in September.
Continue Reading at Telegraph.co.uk…
The Fed needs to worry about low inflation just as much as high, the chief of the Minneapolis Fed said.
by Evan Ramstad
Minneapolis Fed President Narayana Kocherlakota said Friday that he voted against ending the Federal Reserve’s bond-buying stimulus earlier this week because he believes the central bank needs to attack low inflation just as it would high inflation.
In a statement, he said the Fed’s policymaking open market committee’s credibility is at risk because it is not “taking more purposeful steps to move inflation back up to 2 percent,” its publicly-stated target.
When the Fed began tapering the bond-buying campaign last December, Kocherlakota and other members of the committee signed off on a statement that said they would be “monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.”
Continue Reading at StarTribune.com…
from Zero Hedge
Still confused what the BOJ’s shocking move was about, aside from pushing the US stock market to a new record high of course? This should explains it all: as the chart below show, as a result of the BOJ’s stated intention to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month it means the BOJ will now soak up all of the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month.
In other words. The Bank of Japan’s expansion of record stimulus today may see it buy every new bond the government issues.
This is what full monetization looks like.
Continue Reading at ZeroHedge.com…
by Turd Ferguson
TF Metals Report
The information in this report is taken from sources believed to be reliable. However, TFMR Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.
Gosh, that sounds familiar. Where have I seen that disclaimer before? I know I’ve seen it somewhere…hmmm.
I’ve got it!! It’s from the bottom of each day’s “Gold Stocks” report issued by the CME. It didn’t used to be there. In fact, the disclaimer was only added in 2013. Please see this excellent analysis from our pal DenverDave before proceeding:
Continue Reading at TFMetalsReport.com…