Gold and Gold Stocks – Is the Correction Finally Beginning?

by Pater Tenebrarum
Acting Man

Triangle Thrust and Reversal

In mid April, we discussed weekly resistance levels in the HUI Index. Given the recent almost blow-off like move in the index and its subsequent reversal, we decided to provide a brief update on the situation. First, here is a daily chart comparing the HUI, the HUI-gold ratio and gold:

[…] After building another triangle, the HUI has delivered an upside thrust in the direction of the preceding trend. This is quite normal, and so is the subsequent move back to its origin. Three things are noteworthy here: 1. in terms of the HUI-gold ratio, the recent decline is already the strongest of the entire rally since the January low; 2. the downturn hasn’t violated the short term uptrend line just yet; 3. the peak was put in exactly on the day on which gold confirmed the rally in the HUI by breaking out to a new high for the move as well – click to enlarge.

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Cincinnati-Dayton Ohio Market Profile, A, B , C Level Income Properties (Episode #669)

from The Creating Wealth Show

The Greater Cincinnati market has a major Ohio city to the North and to the South, both only a 30-minute drive in either direction. Large employers in the area include AK Steel, which is a Fortune 500 company, a thriving healthcare market and GE Aviation. The local townships entice large corporations by offering favorable tax situations. These employers offer positions at many different pay grades which means a diverse portfolio of A, B and C class properties are beneficial to real estate income property investors in the area.

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No Wonder We’re Poorer: Wages’ Share of GDP Has Fallen for 46 Years

by Charles Hugh Smith
Of Two Minds

The problem is that limiting financialization will implode the system.

The majority of American households feel poorer because they are poorer. Real (i.e. adjusted for inflation) median household income has declined for decades, and income gains are concentrated in the top 5%:

[…] Even more devastating, wages’ share of GDP has been declining (with brief interruptions during asset bubbles) for 46 years. That means that as gross domestic product (GDP) has expanded, the gains have flowed to corporate and owners’ profits and to the state, which is delighted to collect higher taxes at every level of government, from property taxes to income taxes.

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Trumped! Why It Happened And What Comes Next, Part 2

by David Stockman
David Stockman’s Contra Corner

When it comes to the economic future, a Trump presidency could bring either a shitstorm or salvation. Regrettably, the odds of the former are immensely the higher.

That’s because Trump is a welcome, but extremely unguided missile. On the one hand, his great virtue is that he is a superb salesman and showman who has captured the GOP nomination and has a serious shot at the White House with absolutely no help whatsoever from the Washington/Wall Street establishment.

So unlike any other candidate in recent memory, he owns his own talking points; is not saddled with a stable of credentialed advisors schooled in three decades of policy error and failure; and has the hutzpah to trust his own instincts——many of which, especially in foreign policy, are exactly the rebuke that Imperial Washington and its legions of parasites and racketeers so richly deserve.

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The Latest Updates from Martin Armstrong – 2016.05.05

by Martin Armstrong
Armstrong Economics

Apple & Reversals – Per-Click Payment Structure of Socrates

X-ray Eyes: Coming to a Store Near You

Gov’t Is Incapable of Managing Anything – The Electric Crisis in Europe

Market Talk May 5th, 2016

Metals Update on Private Blog

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Free Markets Do Not Need Negative Interest Rates

by Louis Rouanet

Martin Wolf, associate editor and chief economics commentator at the Financial Times, seems to have forgotten the nature of interest rates and their coordinating role. According to him, central banks are not to blame in the persistence of low or negative interest rates. He writes: “We must regard ultralow rates as symptoms of our disease, not its cause.”

Wolf then goes on to claim that “negative interest rates are not the fault of central banks.” It’s difficult to see how Wolf can justify this claim. Never under the gold standard, never under free banking systems, and never in a free market economy have interest rates been negative. Indeed, the interest rate on the unhampered market reflects the social rate of time preference, it is the “price of time.” And as it is a universal law of human action that time preference must always be positive, interest rates cannot possibly be negative on the free market.

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Right Angle: Out of the Blue and Into the Red

from BillWhittleChannel

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Martin Armstrong and Bill Gross Are Wrong About Quantitative Easing

by Avi Gilburt
Gold Seek

I was forwarded an interesting note by Armstrong this morning about his perspective on quantitative easing. In it, he addresses how Bill Gross is wrong about QE. While his ultimate point is correct, his underlying analysis is wrong:

Respectfully, Mr. Armstrong misses one MAJOR point: The Fed did not create “cash,” but rather made more debt available through the QE process. And, it is not that people are hoarding their cash, as that is a different issue, and has nothing to do with QE. There was NEVER any “cash” created by QE. EVER. Not one dollar.

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Is the Supreme Court About to Further Legalize Political Corruption?

by Michael Krieger
Liberty Blitzkrieg

From last year’s post: Kentucky Politician Files Lawsuit Claiming a First Amendment Right to Accept Bribes

The above story related to Kentucky. Today’s story zeroes in on Virginia. The key theme here is obvious, that the U.S. court system seems intent on making it easier and easier for the already widespread corruption endemic to American politics to grow further.

Jeffrey Toobin noted the following yesterday in the New Yorker:

The Supreme Court’s decision in Citizens United marches like a zombie precedent, destroying all in its path. First the case turned the law of campaign finance into a useless corpse. Now it appears the law of political bribery is the next victim. Citizens United let rich people buy candidates; now they may be able to purchase office-holders, too.

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The Art of Masking Weakness

by Rick Ackerman

Stocks are weaker than they appear. Although the E-Mini S&Ps ended the day only slightly lower, the illusion of stable prices was achieved by levitating them the night before on vaporous volume. Index futures made their highs a little before 5 a.m. when no one was watching. With the 20-point selloff that followed in the E-Minis — equivalent to a Dow loss of about 160 points — the dog-and-pony show produced a net loss of only five points. Such shenanigans could yet continue for another day, since Friday is usually good for a little comic relief. Should we get short ahead of the weekend? Stay tuned to the Rick’s Picks chat room, since, if the opportunity arises, it’s not likely to be overlooked by traders in the room.

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Jim Grant Asks When The World Will Realize “That Central Bankers Have Lost Their Marbles”

from Zero Hedge

Authored by James Grant via Grant’s Interest Rate Observer,

April 15 comes and goes but the federal debt stays and grows. The secrets of its life force are the topics at hand— that and some guesswork about how the upsurge in financial leverage, private and public alike, may bear on the value of the dollar and on the course of monetary affairs. Skipping down to the bottom line, we judge that the government’s money is a short sale.

Diminishing returns is the essential problem of the debt: Past a certain level of encumbrance, a marginal dollar of borrowing loses its punch. There’s a moral dimension to the problem as well. There would be less debt if people were more angelic. Non-angels, the taxpayers underpay, the bureaucrats over-remit and everyone averts his gaze from the looming titanic cost of future medical entitlements. Topping it all is 21st-century monetary policy, which fosters the credit formation that leads to the debt dead end. The debt dead end may, in fact, be upon us now. A monetary dead end could follow.

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Who Best for US Economy; Trump or Hillary? Mike ‘Mish’ Shedlock – May 5, 2015

from Talk Digital Network

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