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Business News & Views - Metals, Markets, Shipping, Energy, More

Discussion in 'Coffee Shack (Daily News/Economy)' started by searcher, Aug 25, 2017.



  1. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Ira Epstein's End of the Day Financial Video 2 9 2018
    Ira Epstein



    Published on Feb 9, 2018
     
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    LL Bean drops its unlimited returns policy after a 'staggering' number of customers try to get fraudulent refunds on destroyed items and even ones they have found in TRASH BINS
    • LL Bean's generous lifetime warranty is ending as the company is tightening its belt and reducing n uptick in abuse and fraud it's policy
    • Over the past five years the company says it has seen an increase in abuses
    • People are returning items they bought at thrift stores and found in the trash


    Read more: http://www.dailymail.co.uk/news/article-5372767/LL-Bean-drops-unlimited-returns-policy-fraud.html#ixzz56f4ej9UK
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
     
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    Corporate Marijuana Takeover
    RT America



    Published on Feb 10, 2018
    Corporate Marijuana growers might take over the Marijuana market in California. Brigida Santos explains.
     
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    Rising Deficits, and What They Mean for Silver and Gold
    Silver Fortune



    Published on Feb 11, 2018
    With a 2 year budget deal in the works, and the already massive deficit set to rise by over $300 billion over the next two years, what does this all mean for precious metals, interest rates, monetary policy, and the economy?
     
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  6. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Bitcoin and Crypto Prices Being Manipulated Like Precious Metals?


    -- Published: Monday, 12 February 2018

    Listen on BlogTalkRadio

    Kerry Lutz of the Financial Survival Network (FSN) interviewed GoldCore’s Mark O’Byrne about the outlook for crypto currencies, financial markets and precious metals.

    – Are bitcoin and crypto prices being manipulated like precious metals?
    – Is there a coordinated backlash against bitcoin from JPM and powerful interests?
    – 95% of cryptocurrencies and ICOs will likely go to zero
    – Good cryptos will thrive, most will disappear in “massive creative destruction”
    – Ponzi like nature of financial markets and fiat monetary system
    – Fundamentals do not justify the massive gains in US stocks in recent years (near parabolic rise of over 300% in the S&P 500 since 2009)
    – Is Plunge Protection Team (PPT) active in supporting markets?
    – Retail investors including millennials piling into markets near top
    – Smart money is reducing allocations to stocks and bonds; diversifying into gold
    – Bitcoin is just nine years old and not proven store of value
    – Gold proven store of value as seen in data, history and experience
    – Gold backed crypto, crypto bullion, “digital gold” and “gold on the blockchain” has huge potential
    – Perth Mint, Royal Mint, Royal Canadian Mint, LBMA and many others looking at blockchain
    – Important blockchain solutions have full backing, transparency, security, stop the fraud and have customers interest at heart
    – Important to own hard assets including physical gold and silver outside our digital financial and banking systems

    Listen/ Watch To FSN GoldCore Interview On YouTube Here

    News and Commentary

    Gold edges up as dollar eases; eyes on US inflation data (Reuters.com)

    Asia Stocks Rise With S&P Futures; Dollar Declines (Bloomberg.com)

    Holiday drives up Chinese gold demand (GlobalTimes.cn)

    Gold prices remain up on sustained jewellers’ buying in India (Livemint.com)

    Bitcoin Finds a Bottom as Risk Aversion Grips Global Markets (Bloomberg.com)

    Moody’s Threatens US Downgrade Due To Soaring Debt, “Fiscal Deterioration” (ZeroHedge.com)

    [​IMG]
    Source: Goldchartsrus via Goldseek

    Eight signals to watch that the U.S. stock rout is over (Reuters.com)

    What America’s Super Bowl says about Asia’s stocks (StansBerryChurcHouse.com)

    Where Will The U.S. Get the Cash? – Mauldin (GoldSeek.com)

    Except For Gold…The Big 6 Commodities Were Closed Lower Again – Ed Steer (GoldSeek.com)

    Granddaddy of all Bubbles Has Been Pierced – Doug Noland (CreditBubbleBulletin.blogspot.ie)

    How China Is About to Shake Up the Oil Futures Market (Bloomberg.com)

    Gold Prices (LBMA AM)

    12 Feb: USD 1,321.70, GBP 955.19 & EUR 1,077.45 per ounce
    09 Feb: USD 1,316.05, GBP 945.58 & EUR 1,072.84 per ounce
    08 Feb: USD 1,311.05, GBP 944.87 & EUR 1,071.13 per ounce
    07 Feb: USD 1,328.50, GBP 956.12 & EUR 1,075.95 per ounce
    06 Feb: USD 1,344.65, GBP 962.50 & EUR 1,083.52 per ounce
    05 Feb: USD 1,337.10, GBP 947.20 & EUR 1,072.49 per ounce

    Silver Prices (LBMA)

    12 Feb: USD 16.43, GBP 11.86 & EUR 13.39 per ounce
    09 Feb: USD 16.36, GBP 11.83 & EUR 13.37 per ounce
    08 Feb: USD 16.35, GBP 11.70 & EUR 13.36 per ounce
    07 Feb: USD 16.69, GBP 12.02 & EUR 13.52 per ounce
    06 Feb: USD 16.81, GBP 12.07 & EUR 13.59 per ounce
    05 Feb: USD 16.88, GBP 12.01 & EUR 13.56 per ounce

    https://news.goldcore.com/

    http://news.goldseek.com/GoldSeek/1518424860.php
     
  7. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    U.S. Economy Is at Risk Amid Immigration Curbs, Maersk CEO Says

    February 12, 2018 by Bloomberg


    By Christian Wienberg (Bloomberg) — The chief executive officer of the world’s biggest shipping company says curbs on immigration backed by the administration of President Donald Trump risk hurting the U.S. economy.

    “The U.S. economy is running at full steam and therefore wages have started to rise,” which “in itself is positive,” Soren Skou, the CEO of A. P. Moller-Maersk A/S, said in a phone interview. “But if the U.S. succeeds in cutting off immigration, it will be very challenging to keep the economy going at the same pace.”

    Koch Network Warns Trump Against ‘Arbitrary’ Immigration Cuts

    Running a company that transports goods around the world puts Skou in a unique position to observe how a wave of protectionism is reshaping the global trade map. And as the Trump administration blames globalization for pummeling the middle classes, the Maersk CEO says it’s clear other regions are emerging as economic powerhouses.

    “My personal belief is that Europe has more potential,” Skou said.

    “There are parts of Europe with a lot of potential if they make reforms that strengthen their labor markets and seize the opportunities that arise from digitization,” he said. “If the political situation can be kept under control, I think Europe has some good years ahead.”

    Maersk transported 10.7 million 40-foot containers last year, an increase of 3 percent from 2016. The company’s fleet of almost 800 vessels controls about a fifth of the world’s seaborne trade, according to industry consultant Alphaliner.

    Trump’s Trade Tariffs: You Ain’t Seen Nothing Yet

    When it comes to the longer term, Skou said Maersk is “positive” on Africa and Latin America. “And that’s why we’ve invested a lot in those two regions.”

    “Global trade is not at risk of stopping, but we also have to acknowledge that we probably won’t get to see new, large free-trade agreements,” Skou said. “So we won’t get a boost or an acceleration from that, and that’s a shame because we think that free trade makes the world richer.”

    © 2018 Bloomberg L.P

    Filed Under: News Tagged With: container shipping, global trade, maersk, president trump

    http://gcaptain.com/us-economy-is-at-risk-amid-immigration-curbs-maersk-ceo-says/
     
  8. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Booming Asian Gas Demand Ripples All the Way to Norway

    February 12, 2018 by Bloomberg


    By Mathew Carr and Anna Shiryaevskaya (Bloomberg) — Asia’s rapacious thirst for liquefied natural gas is sucking supplies from surprising places.

    China to Japan and South Korea are paying top dollar for the super-chilled fuel. The pull is so strong that Norway’s Statoil ASA, which usually exports most of its LNG to Europe, is shipping a rare cargo east. It plans to send more.

    Asia gets most of its LNG from Australia, including from the giant Gorgon project on the country’s northwest coast. Malaysia, Papua New Guinea and Indonesia are also big suppliers.

    Statoil’s tanker, the Arctic Aurora, due in South Korea this week shows how the LNG market is becoming global, with more cargoes traveling long distances from the Atlantic to the Pacific region as China leads a landmark shift to burning gas instead of coal. For Statoil, it’s a chance to squeeze a little more profit from its overall gas production that’s already near full capacity.

    “What we’ve seen in Asia is strong prices,” said Peder Bjorland, Statoil’s head of natural gas. But “it doesn’t help to have strong prices if you don’t have the shipping capacity. It’s been difficult to get hold of spot vessels.”

    The producer has in the past sent cargoes to Malaysia, China, India and Japan, but it mainly serves the markets in Europe and the Americas.

    As well as shipping its own production from its Arctic plant, which produces about 40 cargoes a year, Statoil buys and sells LNG in the market. It traded about nine cargoes in each of past two years and has plans to handle more.

    “We do third-party trading mainly to optimize our activities around equity volumes from our liquefaction plant in Norway, and to generate additional margins,” Bjorland said.

    Norway, Europe’s second-biggest natural gas supplier after Russia, was last year preparing for a price drop in the region as a long-expected flood of new liquefied natural gas finally arrives. This is now less likely because of surging demand in Asia.

    Rising transport costs can reduce the arbitrage gains from sending cargoes to Asia and can even exceed the price differential between Europe and Asia. With available shipping increasingly scarce, tapping those profits hasn’t been that easy, he said.

    Still, Asian demand is driving market rates higher and global prices are set to become more correlated, he said.

    “We have a positive view on gas prices.”

    © 2018 Bloomberg L.P

    Filed Under: Maritime News, News Tagged With: LNG, lng carriers

    http://gcaptain.com/booming-asian-gas-demand-ripples-way-norway/
     
  9. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Gold Seeker Closing Report: Gold and Silver Gain With Stocks
    By: Chris Mullen, Gold Seeker Report
    Gold gained $11.10 to $1325.90 in early Asian trade before it fell back to $1317.50 in London, but it then climbed to a new session high of $1326.10 in New York and ended with a gain of 0.49%. Silver rose to as high as $16.619 and ended with a gain of 1.23%.
     
  10. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Another Dead Cat Bounce in the Stock Market?
    Silver Fortune



    Published on Feb 12, 2018
    The slump in stocks, and rise in volatility, will continue as long as interest rates and bond yields continue to rise.
     
  11. searcher

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  12. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    The LOOP’s About-Face on Oil Imports Cues U.S. Drive Into Global Market

    February 14, 2018 by Bloomberg

    [​IMG]


    By David Wethe and Sheela Tobben (Bloomberg) — The latest example of America’s turnaround from buyer to supplier in the global oil market can be seen 20 miles off the coast of Louisiana.

    There, buoys that served as critical infrastructure for bringing crude into the U.S. for more than 30 years are being readied for the exact opposite purpose: pump oil into massive tankers for shipments around the globe.

    Using the Louisiana Offshore Oil Port is emblematic of the upended U.S. oil market, where declining domestic production since the 1970s had turned Gulf of Mexico refineries into avid consumers of foreign crude.

    Now, thanks to the shale boom that vaulted the U.S. to the ranks of top producers Saudi Arabia and Russia, older systems designed to move crude north from the Gulf are getting a second look for new uses. While the Louisiana hub would likely be used to ship crude produced in nearby offshore fields, that oil would probably be heading for U.S. refineries if it weren’t for the abundance of production coming from shale plays.

    “For 40 years, our entire infrastructure was being built from the south to the north — that is our entire infrastructure direction,” Paul Cheng, an analyst at Barclays, said Tuesday in a phone interview. “And for the last 10 years, we’ve been very actively reversing that direction.”

    American crude production has topped 10 million barrels a day, and the government forecasts it will surge to 11 million later this year.

    Being able to load very large crude carriers, which is industry terminology for massive tankers that hold 2 million barrels of oil, will significantly cut the cost of shipping cargoes overseas. At ports in Corpus Christi and Houston, which currently handle the most exports, smaller vessels are needed to ferry the fuel out to the 1000-foot-long ships waiting in deeper waters.

    But that’s not a problem for the LOOP, which has long been the biggest entry point for U.S. oil imports, offering super tanker buoys for hooking up hoses 20 miles offshore in 100 feet of water. On the LOOP’s website early Tuesday, officials said they’re testing modifications from last year to be able to export oil.

    Even if LOOP finds it can load a super tanker for export seamlessly, its shipment volumes will likely be limited as it also handles oil imports. LOOP pumps crude from ships at the offshore buoys through a 45-mile pipeline to onshore tanks at Clovelly, Louisiana.

    Different Crudes
    Oil already sitting in the pipe, known as linefill, kick-starts the discharge of supplies from the vessel. Much of that linefill is the heavy, high-sulfur crude that LOOP typically receives. By contrast, most of the U.S. exports would be light and low sulfur.

    One solution would be to empty the pipe into a tank and refill it with another type of crude similar to the export cargo before a ship pulls up to receive it, Sandy Fielden, director of research and commodities for Morningstar Inc. in Austin, Texas, said in a phone interview.

    “Logistically it’s going to be complicated,” Fielden said. “Even if it’s bidirectional pipe, it still is single pipe. Until they build a parallel pipe, they will have to limit how often to do exports.”

    The decades-old LOOP may also need the help from some other legacy gear in the oil patch being looked at for a reversal in flow.

    Marathon Petroleum Corp. has said it’s gauging interest for possibly reversing the flow of oil southward for its Louisiana-Illinois Capline. If it goes ahead, the pipeline project would be ready in the second half of 2022, at an initial capacity of 300,000 barrels a day.

    It will likely take a number of years for the LOOP to become a dominant exporting hub, Cheng said. And even so, the terminal will still be called upon for importing as well.

    “You want to test it out,” Cheng said. “You want to arm yourself so that when the time comes, we can use it all at the same time.”

    © 2018 Bloomberg L.P

    Filed Under: Maritime News Tagged With: loop, u.s. oil exports

    http://gcaptain.com/the-loops-about-face-on-oil-imports-cues-u-s-drive-into-global-market/
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Already Hit by Rising Fuel Costs, Carriers Now Face Spike in Charter Hire Rates

    February 14, 2018 by The Loadstar

    [​IMG]
    Photo: By VladSV / Shutterstock

    By Mike Wackett (The Loadstar) – Already facing higher fuel costs, ocean carriers could now be hit by a rise in charter hire rates.

    Container shipping lines are being obliged to pay higher daily hire rates for chartered vessels as the availability of tonnage falls to a new low.

    Speaking during Maersk Group’s 2017 Q4 earnings call last week, Maersk Line COO Soren Toft conceded that shipowners were finally beginning to regain the upper hand in charter party negotiations.

    “We are seeing some pressure on the time charter rates, mainly as a result of the idle fleet being low,” he said.

    Indeed, according to the most recent survey by Alphaliner, idle container capacity has shrunk to 191,441 teu, representing just 0.9% of the global fleet.

    “The idle fleet has dropped sharply in the past fortnight as carriers rushed to add capacity to take advantage of the high pre-lunar new year holiday demand in the Far East,” said Alphaliner.

    “Container vessel owners are confident that the charter market will maintain its positive momentum after the lunar new year, with an expected push in demand, which, considering the low availability of spot tonnage, should result in strengthening charter rates.”

    It noted that supply was “getting tight in the VLCS segment” of 7,500-11,000 teu ships, and that there were regions, such as the Atlantic, where there are “no ships available”.

    And, according to one broker source The Loadstar spoke to this week, if you can find a VLCS, “rates are high and conditions tough”.

    He said owners were “starting to get their revenge on carriers” that had “squeezed them” for so long.

    Higher charter rates, and particularly less-flexible terms such as options and off-hire redeliveries, is bad news for Maersk Line’s operating costs in particular, as it charters 48.8% of its 4.3m teu capacity.

    However, the bottom line of its top-ranking peers could be even harder hit by the scarcity of prompt tonnage and rising charter hire rates. For example, MSC charters 65.4% of its 3.2m teu capacity, CMA CGM 62.6% of 2.5m teu and Cosco 69.9% of 1.9m teu.

    Fifth in the carrier rankings, Hapag-Lloyd charters just 31.9% of its 1.5m teu capacity, thus if the market continues to rise, the German carrier will develop a cost-base advantage over its larger rivals.

    Meanwhile, containership owners are deferring scrapping their older tonnage to take advantage of the market conditions. One of the biggest, Athens-based Danaos, reported an $84m profit for 2017, compared with a loss of $366m the year before, when it had been hit by impairments and the aftermath of the Hanjin bankruptcy.

    Moreover, although Danaos has several ships with charters expiring this year, in the current climate it should not have too many problems in either extending these or finding new charterers.

    According to the latest demolition report from London-based broker Braemar ACM, so far this year only five ships, for 13,000 teu, have been scrapped. This compares with 41 vessels, for 127,000 teu, at the same time in 2017.

    The Loadstar is fast becoming known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

    Check them out at TheLoadstar.co.uk, or find them on Facebook and Twitter.

    Filed Under: Maritime News Tagged With: container shipping

    http://gcaptain.com/already-hit-by-rising-fuel-costs-carriers-now-face-spike-in-charter-hire-rates/
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Gold & Inflation: It's Happening
    Junius Maltby



    Streamed live 5 hours ago
    Headlines and news articles abound with talk of inflation and rising interest rates. Let's talk about it and look at what this is doing to metals and markets.

    Channel Gold Coin: https://qualitysilverbullion.com/prod...
     
  15. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Gold Seeker Closing Report: Gold and Silver Gain Almost 2%
    By: Chris Mullen, Gold Seeker Report
    Gold gained $7.60 to $1336.90 in Asia before it dropped back down to $1318.50 just after this morning’s inflation data was released, but it then soared back higher for most of the rest of trade and ended near its early afternoon high of $1355.50 with a gain of 1.72%. Silver rose to as high as $16.929 and ended with a gain of 1.81%.
     
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  17. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    farm talk feb. 13
    Ag Talk In The Raw



    Published on Feb 13, 2018
    i am here to talk about farming and al that goes with it.
     
  18. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    John Williams – US Deficit Is Beyond Control
    Greg Hunter



    Published on Feb 13, 2018
    Are the Trump tax cuts going to help the economy or hurt it? The answer is both. Economist John Williams explains, “The tax cuts are generally positive. Anytime you cut taxes that is generally a plus for the economy. The problem is the average guy is still not making ends meet. Anything that increases disposable income is a plus. This does not necessarily go to the guys at the lower end of the income scale, but generally there should be a little economic pick up here from it. The problem is what happens to the budget deficit. We just went through the government shutdown and a package that lays things out for the next two years, but it widens the deficit. The deficit is beyond control. We have $100 trillion in unfunded liabilities. That means you need $100 trillion in hand right now to cover the federal obligations going forward. . . . Printing money to meet obligations is what happened in the Weimar Republic in Germany. This happened in Zimbabwe. This kind of thing eventually gives you a hyperinflation. . . . Ongoing budget deficit and debasing of the dollar will give you global selling pressures in the currency markets. . . . We haven’t seen much selling in the dollar, but that is going to change. You are going to see flight from the dollar and flight from the markets as well.”

    Join Greg Hunter as he goes One-on-One with economist John Williams, founder of ShadowStats.com.

    Donations: https://usawatchdog.com/donations/

    Stay in Contact with USAWatchdog.com: https://usawatchdog.com/join/

    All links can be found on USAWatchdog.com: https://usawatchdog.com/fed-triggered...
     
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    Global Stocks, S&P Futures Soar, Ignoring Yields Creeping Ever Closer To 3.00%
    [​IMG]
    by Tyler Durden
    Thu, 02/15/2018 - 07:02


    Global stocks, bond yields and commodities all jumped higher on Thursday while the dollar plunge continued, as investors suddenly seemed to forget the inflation fears blamed for a brutal market sell-off in recent weeks.

    Last week's volocaust is a fading, distant memory, and this morning global stocks - albeit without China which is on weekly holiday for the Lunar New Year - continue their relentless surge with the Dow set to open back over 25,000, even as yields rise and the 10Y is fast approaching 3.00%, thanks to a plunging dollar which fell for a firth day, keeping financial condition well lubricated. As a result, global stocks and futures are a sea of green this morning despite growing inflationary noise in the background.

    [​IMG]


    Commenting on the overnight price action, one major bank said it can be briefly summarized as: bearish USD, bearish fixed income, bullish equities, bullish oil. As the trader notes, "We’ve definitely been here before – in fact, it was the consensus trade for 2018 until the recent market rout questioned the move." Therefore there’s certainly a sense of déjà vu as the paradoxical moves in markets continue at least until inflation fears hit the next tipping point and launch the next equity market selloff.

    In the meantime, one can scratch their heads: the bank adds that "the bewildering nature of recent price action has become a somewhat familiar feature of markets lately."

    One needs just three charts to understand what is going on on most days: futures are up, as they are this morning...

    [​IMG]

    ... even if yields are sharply higher, which they also are as the 10Y rises above 2.93%...

    [​IMG]



    ... as long as the dollar is tumbling, and financial conditions are looser.

    [​IMG]



    As Reuters notes, economists were struggling to explain the turnaround except for the argument that historically it’s not unusual for stocks and bond market borrowing costs to rise in tandem with a rapidly expanding economy.

    Some just blamed the weather and time of year. They speculated that strong U.S. inflation data on Wednesday that many had predicted could reignite the rout was probably distorted. They also said the looming Chinese New Year may have caused Asian traders to square up.

    Meanwhile, bond traders increased their expectations for the number of Federal Reserve interest-rate hikes to four by the end of next year after yesterday's blistering CPI report. The inflation figures gave rise to debate among investors and traders on the breakdown in correlations to interest rates, as currency investors focused instead on the U.S.’s twin deficits.

    “For me it’s a clear indication that inflation is not as big a threat as people made it out to be over the past couple of weeks,” said Lukas Daalder, chief investment officer at Robeco in Rotterdam. "The trend behind the market is still very strongly pointed upwards. 2017 was a very momentum-driven market, and if that’s still the case, which after yesterday it appears to be, then we will probably see new highs before too long."

    Volatility shrank back rapidly too. The VIX index fell all the way back to 18, less than half the 50-point peak touched last week.

    * * *

    Whatever the reason, the animal spirits were back. However, should the dollar and yields rise at the same time, run.

    For now, China is off to enjoy the Lunar New Year and welcome the Year of the Dog, and there’s another celebration in EM FX as the ZAR continues to revel in the resignation of Zuma.

    The Stoxx Europe 600 Index took its cue from a rally in the truncated Asian session, to advance for a second day - ignoring the growing, $22 billion Bridgewater short of European stocks - as traders assessed earnings from heavyweights including Nestle and Airbus while eyeing rising bond yields that may be approaching a critical level for the direction of equity markets.

    As a result, the Stoxx 600 climbed 0.4%, heading for a weekly gain of ~2%. Airbus advanced 8.9% in the best performance among single stocks on the gauge after the planemaker struck an optimistic tone in its outlook for 2018, promising earnings growth of 20%. Nestle dropped 2.6% after it posted the weakest sales growth in more than 20 years. Elsewhere, South African exposed Old Mutual (+3.8%) and Anglo American (+3.0%) lead the FTSE 100 as South Africa now eyes life-after Zuma with Ramaphosa now appointed as Preisdent. Miners occupy a bulk of the other outperformers in the UK amid movements in the commodity complex with Antofagasta (+2.9%) also lifted after winning approval for a USD 1.1bln revamp of its Los Pelambres copper mine.

    In Asia, Australia's ASX 200 (+1.2%) was positive with its biggest movers dictated by earnings releases and as commodity names were underpinned by strength in the complex. Elsewhere, Nikkei 225 (+1.5%) advanced and managed to ignore the latest plunge in the USDJPY, which took out downside stops after Finance Minister Taro Aso said the currency’s strength isn’t abrupt enough to require intervention- as well as a slump in machine orders, while Hang Seng (+1.6%) closed the session as the outperformer in a holiday-shortened session, before it joined mainland China for Lunar New Year celebrations.

    In FX, it was all about the ongoing dollar weakness, which persisted pushing the Bloomberg Dollar Index down a fifth day. The dollar tumbled though across the board, including to a 15-month low against the yen of 106.18 yen as worries about the U.S. government’s finances seemed to set again after a White House-led spending splurge and recent corporate tax cuts. That also marked a drop of 3.8 percent from its early February peak near 110.50 yen, while the euro and pound both climbed back above the $1.25 and $1.40 thresholds.

    “The story I hear most frequently from people is it’s the re-emergence of the twin deficits,” said RBC Capital Markets head of currency strategy Adam Cole, in London, of the dollar’s persistent weakness. “There seem to be concerns on the U.S. fiscal position and what that implies for the current account.”

    The EUR/USD climbed a fifth day, approaching Jan. 25 high of 1.2537, which was the highest since Dec. 2014, while GBP/USD sustains advance over 1.40 on reports of the EU’s softening Brexit stance, set for fourth daily rise. As noted above, the USD/JPY slipped; the yen earlier touched its strongest level since Nov. 2016 versus the dollar on comments from the finance minister dismissing the need for intervention. The South African rand was the biggest gainer versus the dollar among its major peers on news of Jacob Zuma’s resignation; the rand appreciated to its strongest level since Feb. 2015.

    Looking at the ongoing Brexit drama, UK PM May is reportedly facing a crisis related to the Brexit border deal, after Northern Ireland power sharing discussions were said to have collapsed. Separately the Telegraph reported that the EU will demand the right to raid financial services firms in Britain after Brexit and hand its regulators sweeping new powers, as Brussels moves to shackle the City of London with red tape after the UK leaves the bloc. Finally, in some good news, the BBC reported that EU diplomats have removed a so-called "punishment clause" from a draft text of the arrangement for the Brexit transition period, the BBC understands. However, it was later reported that the EU denied this was the case...

    In the commodities complex, WTI and Brent crude futures trade in close proximity to recent highs seen in the wake of yesterday’ssmaller than expected build in the DoEs and comments from Saudi with prices also supported by the broad softness in the USD. Inmetals, gold prices have also benefitted from the softer USD, although gains are likely capped by the broad-based risk sentiment inthe market. Elsewhere, copper prices have hit their highest level in 10 days amid this morning’s risk environment, while priceaction was relatively limited during Asia-Pac trade given the closure of the Shanghai Futures Exchange for the Lunar New Year holiday.

    Market Snapshot
    • S&P 500 futures up 0.8% to 2,718.50
    • STOXX Europe 600 up 0.8% to 377.54
    • MSCI Asia Pacific up 1.4% to 176.14
    • MSCI Asia Pacific ex Japan up 1.3% to 578.63
    • Nikkei up 1.5% to 21,464.98
    • Topix up 1% to 1,719.27
    • Hang Seng Index up 2% to 31,115.43
    • Shanghai Composite up 0.5% to 3,199.16
    • Sensex up 0.4% to 34,273.84
    • Australia S&P/ASX 200 up 1.2% to 5,908.99
    • Kospi up 1.1% to 2,421.83
    • German 10Y yield rose 2.4 bps to 0.781%
    • Euro up 0.3% to $1.2492
    • Italian 10Y yield fell 2.0 bps to 1.795%
    • Spanish 10Y yield rose 0.6 bps to 1.52%
    • Brent futures up 0.2% to $64.49/bbl
    • Gold spot up 0.3% to $1,354.33
    • U.S. Dollar Index down 0.4% to 88.76
    Top Overnight News from Bloomberg
    • Cyril Ramaphosa faces a tough road ahead as South Africa’s new president after Jacob Zuma’s resignation late Wednesday ended nine years of his scandal-marred administration. Ramaphosa remains acting president until his expected election in parliament later Thursday
    • U.S. tax authorities have requested documents from lenders and investors in real estate projects managed by Jared Kushner’s family, according to a person familiar with the matter.
    • Japanese Finance Minister Aso said the yen’s recent move isn’t abrupt enough to warrant intervention causing the yen to climb
    • A report from Politico that the European Union is looking to ease Brexit transition conditions, helped support the pound
    • Merkel vows to ensure Germany maintains balanced budget
    • Japan’s Aso says yen strength isn’t abrupt enough now to intervene
    • Kuroda says BOJ will continue to take best policy for price target
    • Australia Jan jobs 16.0k vs 15.0k est; unempl. rate 5.5% vs 5.5% est
    • Singapore Jan exports -0.3% vs 4.2% est; y/y 13.0% vs 8.9% est
    Asian stocks traded higher as the region received a tailwind from US where all major indices finished with firm gains and the DJIA posted its best 4-day performance in almost a decade. ASX 200 (+1.2%) was positive with its biggest movers dictated by earnings releases and as commodity names were underpinned by strength in the complex. Elsewhere, Nikkei 225 (+1.5%) advanced and managed to overlook a firmer JPY and slump in machine orders, while Hang Seng (+1.6%) closed the session as the outperformer in a holiday-shortened session, before it joined its mainland counterparts for Lunar New Year celebrations. Finally, 10yr JGBs were relatively flat with early mild pressure seen amid the uptick in riskier assets, although this was later counterbalanced amid the BoJ’s presence in the market for 1yr-10yr JGBs totalling over JPY 1tln.

    Top Asian News
    • Philippine Central Bank Cuts Reserve Ratio by 1 Point to 19%
    • Abe Said to Be Likely to Nominate BOJ Governor on Friday
    • IDG-Backed China Online Credit-Checking Firm Is Said to Plan IPO
    • Cathay Pacific Supplier Topcast Aviation Is Said to Pursue Sale
    European bourses trade higher across the board (Eurostoxx 50 +0.6%) in a continuation of the sentiment seen yesterday on Wall Street and overnight in Asia-Pac trade. On a sector basis, consumer staples underperform following lacklustre earnings from Swiss-titan Nestle (-2.2%), with the index heavyweight subsequently leading the SMI to lag its peers in the region. Elsewhere, South African exposed Old Mutual (+3.8%) and Anglo American (+3.0%) lead the FTSE 100 as South Africa now eyes life-after Zuma with Ramaphosa now appointed as Preisdent. Miners occupy a bulk of the other outperformers in the UK amid movements in the commodity complex with Antofagasta (+2.9%) also lifted after winning approval for a USD 1.1bln revamp of its Los Pelambres copper mine. Elsewhere, Standard Life (-4.9%) sits at the bottom of the FSTE 100 after Scottish Widows and Lloyds sent notices to co. to terminate investment management relations. Finally, earnings dominate the state of play in the CAC with Airbus (+9.3%), Schneider Electric (+3.6%) and CapGemini (+2.5%) all lifted by encouraging earnings.

    Top European news
    • Dalio Causes Stir With $18 Billion Surge in European Short Bets
    • Austrian Bitcoin Scam May Affect Over 10,000 Users, Presse Says
    • In the Age of Brexit, Events Manager RELX Opts for London Base
    In FX, Japan’s Finance Minister Aso has given the green light for Jpy bulls to charge on, and 106.00 vs the Usd is now within striking distance given little in the way of technical support until 105.85 vs the latest 106.20 low. Moreover, all other G10 rivals are eyeing recent peaks vs the Greenback with Cable just eclipsing the 1.4067 level posted after the BoE’s hawkish policy guidance shift on February 8th, while Eur/Usd almost challenged Fib resistance at 1.2518 ahead of the 1.2537 year to date high before slipping back below 1.2500. Usd/Chf is toppy around the bottom of a 0.9300-0.9230 range, while Nzd/Usd has rebounded above the 0.7400 handle and Aud/Usd is over 0.7950 despite mixed jobs data overnight and ahead of RBA Governor Lowe orates later today. Usd/Cad relatively steady albeit sharply down from Wednesday’s post-US CPI data spike highs and sub-1.2500 amidst ongoing NAFTA uncertainty and awaiting a speech from BoC Deputy Governor Schembri. All this leaves the Dollar Index below 89.00 again and vulnerable against a deeper set-back towards 2018 lows under 88.50, especially as the Usd continues to suffer broader losses with the likes of Usd/Zar sliding towards 11.6400 in wake of the resignation of Zuma as SA President with immediate effect.

    In the commodities complex, WTI and Brent crude futures trade in close proximity to recent highs seen in the wake of yesterday’s smaller than expected build in the DoEs and comments from Saudi with prices also supported by the broad softness in the USD. In metals, gold prices have also benefitted from the softer USD, although gains are likely capped by the broad-based risk sentiment in the market. Elsewhere, copper prices have hit their highest level in 10 days amid this morning’s risk environment, while price action was relatively limited during Asia-Pac trade given the closure of the Shanghai Futures Exchange for the Lunar New Year holiday.

    Looking at the day ahead, the January PPI and IP, February empire manufacturing, February Philly Fed PMI, February NAHB housing market index and the latest weekly initial jobless claims readings are all due in the US. In Europe Q4 employment data in France and the December trade balance for the Euro area are due. The ECB’s Mersch and Praet are also slated to speak at an event in Paris.

    US Event Calendar
    • 8:30am: Empire Manufacturing, est. 18, prior 17.7
    • 8:30am: Initial Jobless Claims, est. 228,000, prior 221,000; Continuing Claims, est. 1.93m, prior 1.92m
    • 8:30am: PPI Final Demand MoM, est. 0.4%, prior -0.1%; Ex Food and Energy MoM, est. 0.2%, prior -0.1%
    • 8:30am: PPI Final Demand YoY, est. 2.4%, prior 2.6%; Ex Food and Energy YoY, est. 2.0%, prior 2.3%
    • 8:30am: Philadelphia Fed Business Outlook, est. 21.6, prior 22.2
    • 9:15am: Industrial Production MoM, est. 0.2%, prior 0.9%; Manufacturing (SIC) Production, est. 0.25%, prior 0.1%
    • 10am: NAHB Housing Market Index, est. 72, prior 72
    • 4pm: Total Net TIC Flows, prior $33.8b; Net Long-term TIC Flows, prior $57.5b
    DB's Jim Reid concludes the overnight wrap

    Happy Boxing Valentine’s Day. My wife went to bed at 7pm last night with the twins to desperately try to catch up on sleep while I watched a rampant Liverpool win 5-0 away from home in Europe on the telly, with Bloomberg TV on my iPad alongside me to catch up with the post CPI rally. A question for long time married readers though is when does romance come back into a marriage after having children?

    Anyway yesterday was one of those days where having the most important data release ahead of time probably wouldn’t have helped you much. In fact it may have helped you lose money in risk. The well above expectations number for CPI was negative for bonds - as you would have expected - but equities rallied hard (S&P 500 +1.34%) after a large sell off in the minutes following the release (S&P futures slumped c.-1.8%). The price action yesterday perhaps tells us that the normalisation from last week’s vol shock is more powerful for markets for now than the data. However if this inflation trend holds (as has been and still is our expectation) we’re in for some real fun and games in markets in 2018 once the dust settles.

    To be fair, weaker US retail sales (more details later) may have confused the story somewhat but it was all about inflation. For core, once we added in the extra decimal places the number came in at +0.349% putting clear air over the consensus estimate for just +0.2% and nearly rounding up to 0.4% MoM. In fact that was the largest monthly climb since March 2005 and kept the YoY steady at +1.8% (+1.7% expected). The three-month annualized rate also jumped to the highest since 2011 (+2.9%) and the six-month annualized rate also hit the highest since 2008 (+2.6%). The underlying components appeared to also affirm that inflation was relatively broad-based while there was a similar beat at the headline level (+0.5% mom vs. +0.3% expected).

    Treasury yields marched higher with 10 year yields +7.3bp higher on the day to 2.903%, but c9bp up from just before the release. 2 and 30yr yields were up 6.1 and 5.1bps on the day. A reminder that yesterday we published a note (link) showing asset prices in the first and second half of the 1960s using our economists’ framework that there are big similarities between the inflection point on inflation in the 1960s and the current day.

    In terms of US equities, sectors such as Banks (+2.55%), tech (+1.95%) and energy (+1.40%) led the rally. The VIX also swung c7pts intraday to close 5.7pts lower at 19.26. As we said earlier perhaps this current vol normalisation trend held sway yesterday but if inflation continues like this it feels impossible for us to imagine vol settling back down around 10 for a persistent period. We are likely to have some big trading days this year.

    This morning in Asia, markets are extending on the positive US lead. The Nikkei (+1.21%) and Hang Seng (+1.97%) are up as we type, while the Chinese markets are now closed until the 21st for the lunar New Year holidays. After the bell in the US, Cisco’s share price jumped c7% after guiding to higher than expected sales for the current quarter and plans to boost its share buybacks by $25bn. Elsewhere, the YEN rose for the fourth straight day (+0.4%), partly helped by Japan’s Finance minister Aso prior comments where he noted “the current situation doesn’t warrant special intervention. The Yen isn’t rising or falling abruptly”.

    Now recapping other markets performance from yesterday. European bourses initially traded lower post the US CPI print, but recovered throughout the day to be up c1%, partly aided by sound corporate results and supportive GDP prints. The Stoxx 600 (+1.07%), DAX (+1.17%) and FTSE (+0.64%) were all up and only the energy sector was in the red within the Stoxx. The VSTOXX fell 20% to 20.71. Over in government bonds, 10y Bunds and Gilts yields rose 0.7bp and 2.1bp respectively, while peripherals partly recovered from the prior day losses with yields down 1-6bp. Turning to currencies, the US dollar index weakened for the third consecutive day (-0.65%), while both the Euro and Sterling gained c0.8%. Elsewhere, the South African Rand was up 2.1% following President Zuma’s resignation. In commodities, WTI oil rebounded 2.38% to $60.60/bbl, in part as the latest EIA report showed US crude stockpiles rose less than expected last week. Precious metals gained c1.6% (Gold +1.59%; Silver +1.67%) and other LME base metals increased as the USD continues to fall (Copper +2.50%; Zinc +2.80%; Aluminium +1.80%).

    Away from the markets, President Trump said he supports a 25c per gallon increase in federal gasoline and diesel taxes to help pay for upgrading roads, bridges and other public works. So perhaps there is more potential to fund his $1.5bln infrastructure plans, although Republican Senator Grassley noted the tax hike was unlikely to come up for a vote in the Senate and that “he’ll never get it by (Senator) McConnell”.

    Staying in the US, our economists have been highlighting the upside risks to their growth outlook for some time. Given the recent passage of a bipartisan budget agreement provides for c$300 billion in additional discretionary spending over the next two years, they have now raised their 2018 real GDP growth forecast (Q4/Q4) to 2.9% (+0.3ppt) and the 2019 forecast rises to 2.5% (+0.4ppt). Following on, stronger growth should put further downward pressure on the unemployment rate, which they now expect will trough at 3.2% in 2019, about 1.5ppt below NAIRU. On rates, their views are unchanged and they continue to expect four rate hikes this year and three next year. But recent developments have tilted the balance of risks to the upside.

    Now turning to some of the Brexit headlines. Foreign secretary Boris Johnson seemed to support the status quo during the Brexit transition period by noting “things will remain as they are”. However, he does make a case for a clean break with the EU – leaving the single market and customs union and pursuing flexibility for the UK to choose which EU rules it wants to keep post Brexit. Elsewhere, he noted “Theresa” was the right PM for the UK to lead Brexit talks while also indicating “let’s not go there” in terms of a potential second referendum on Brexit. On the other side, the EC’s Juncker’s response was quite colourful, he noted some in British politics “are against the truth, pretending that I’m a stupid, stubborn federalist…that I’m in favour of the EU superstate”, but “I’m strictly against (a superstate)….we aren’t the United States of America, we are the EU…”.

    In Germany, Ms Merkel reiterated that the “black zero” fiscal prudence is the trademark of the CDU and “it will remain so in the future”. She noted that “if the SPD occupy the Finance Ministry in the future, our budget lawmakers will have to be even more careful that they don’t pile on new debt”.

    Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the core CPI for January was above market at 0.3% mom (vs. 0.2%) as discussed earlier. Price increases were well spread across the core CPI, but part of the CPI gain was from a 1.7% monthly increase in apparel prices, the biggest increase since 1990. Notably, retail sales missed expectations. In the details, headline retail sales was -0.3% mom (vs. +0.2% expected). Ex auto and gas sales (-0.2% mom vs. +0.3%) and control group sales (0.0% mom vs. +0.4% expected) were also accompanied by downward revisions to December sales. The data certainly suggested a weaker looking consumption profile to the start the year and will likely cause the street to reassess growth forecasts the current quarter. Indeed the Atlanta Fed slashed their Q1 forecast to 3.25% from 4% but be slightly careful as their could have been some post hurricanes payback here. Elsewhere, December business inventories slightly beat at 0.4% mom (vs. 0.3% expected).

    The Euro area’s 4Q GDP was in line at 0.6% qoq and 2.7% yoy. Across the countries, Germany’s 4Q GDP was also in line and solid at 0.6% qoq while Italy was slightly lower than expected at 0.3% qoq (vs. 0.4%). Elsewhere, the Euro area’s December IP was above market at 0.4% mom (vs. 0.1%), while Germany’s final reading of the January CPI was unrevised at 1.4% yoy. In Sweden the Riksbank left its policy rate at -0.5% and continued to forecast a gradual tightening from the second half of this year.

    Looking at the day ahead, the January PPI and IP, February empire manufacturing, February Philly Fed PMI, February NAHB housing market index and the latest weekly initial jobless claims readings are all due in the US. In Europe Q4 employment data in France and the December trade balance for the Euro area are due. The ECB’s Mersch and Praet are also slated to speak at an event in Paris. Nestle will report earnings.

    https://www.zerohedge.com/news/2018...r-ignoring-10y-tsy-yield-creeping-ever-higher
     
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    Gold Seeker Closing Report: Gold and Silver End Higher In Mixed Trade
    By: Chris Mullen, Gold Seeker Report
    Gold gained $4.90 to $1357.00 in late Asian trade before it drifted back to $1348.60 in London and then bounced back above unchanged in early New York trade ahead of another dip into midday, but it then rallied back higher into the close and ended with a gain of 0.1%. Silver swayed between $16.976 and $16.648 and ended with a gain of 0.06%.
     
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    Gold Price To Drop To $1100 By Years End?
    SalivateMetal



    Published on Feb 15, 2018
     
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    Trump Administration Sets March Date for Largest Oil and Gas Lease Auction in U.S. History

    February 16, 2018 by Reuters



    [​IMG]
    Photo: Shutterstock / marchello74

    WASHINGTON, Feb 16 (Reuters) – The Trump administration on Friday said it would offer the largest oil and gas offshore auction in U.S. history on March 21 for areas in federal waters off the Gulf Coast, less than a year after a similar sale yielded little corporate interest.

    The Interior Department said it would offer 77.3 million acres (31.3 mln hectares) offshore Texas, Louisiana, Mississippi, Alabama and Florida for oil and gas development, an auction that includes all available unleased areas in the Gulf of Mexico. The blocks are from 3 to 231 miles (5 to 372 km) offshore and in waters 9 to 11,115 feet (3 to 3,390 meters) deep.

    The department announced the auction in October, without an exact date. The sale is in support of President Donald Trump’s so-called America First Offshore Energy Strategy, which aims to reduce energy imports and boost jobs in the industry.

    But offshore drilling is expensive in a time of relatively low oil prices held in check partially by plentiful supplies of onshore petroleum, which is cheaper to produce.

    A lease sale in August last year got a tepid response from oil companies. The offer of 73 million acres received $121.14 million in high bids for 90 tracts covering 508,096 acres (205,619 hectares).

    Bureau of Ocean Energy Management spokesman John Filostrat has said that Interior hopes for “a healthy number of bids, more so than we did in August.”

    (Reporting by Timothy Gardner Editing by Marguerita Choy)

    (c) Copyright Thomson Reuters 2018.

    Filed Under: Offshore News Tagged With: president trump, trump offshore drilling plan

    http://gcaptain.com/trump-administration-sets-march-date-largest-oil-gas-lease-auction-us-history/
     
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    Loan Shark Nation: Forcing Our Kids To Choose Between Student Loans And Everything Else

    By: John Rubino


    -- Published: Friday, 16 February 2018

    It’s mid-winter, which means millions of high school seniors are winding up their childhoods and planning for what comes next. For many this next stage is college.

    But in yet another example of how we baby boomers have rigged the system in our favor at the expense of pretty much everyone else, student loans – barely necessary when most boomers graduated 40 years ago – have become a life-defining problem for our kids and grandkids.

    A college degree is now so expensive that for most students it requires massive borrowing. But the starting salary in most fields has risen so slowly that growing numbers of indebted grads can’t reduce – let alone pay off – their loans. From today’s Wall Street Journal:


    Jumbo Loans Are New Threat in U.S. Student Debt Market
    During the housing boom of the 2000s, jumbo mortgages with very large balances became a flashpoint for a brewing crisis. Now, researchers are zeroing in on a related crack but in the student debt market: very large student loans with balances exceeding $50,000.


    A study released Friday by the Brookings Institution finds that most borrowers who left school owing at least $50,000 in student loans in 2010 had failed to pay down any of their debt four years later. Instead, their balances had on average risen by 5% as interest accrued on their debt.

    As of 2014 there were about 5 million borrowers with such large loan balances, out of 40 million Americans total with student debt. Large-balance borrowers represented 17% of student borrowers leaving college or grad school in 2014, up from 2% of all borrowers in 1990 after adjusting for inflation. Large-balance borrowers now owe 58% of the nation’s $1.4 trillion in outstanding student debt.

    “This is comparable to mortgage lending, where a subset of high-income borrowers hold the majority of outstanding balances,” write Adam Looney of Brookings and Constantine Yannelis of New York University.

    “A relatively small share of borrowers accounts for the majority of outstanding student-loan dollars, so the outcomes of this small group of individuals has outsized implications for the loan system and for taxpayers,” the authors say.

    The problem is particularly acute among borrowers from graduate schools, who don’t face the kinds of federal loan limits faced by undergraduate students. Half of today’s big balance borrowers attended graduate school. The other half went to college only or are parents who helped pay for their children’s education.

    Grad school borrowers tend to be among the best at paying off student debt because they typically earn more than those with lesser degrees. But the rising balances unearthed in the latest study suggest that pattern might be changing.

    Overall across the U.S., one-third of borrowers who left grad school in 2009 hadn’t paid down any of their debt after five years, compared to just over half of undergraduate students who hadn’t, federal data show.

    The findings on graduate schools are particularly noteworthy because the government offers little information on the loan performance of grad students, who account for about 14% of students at universities but nearly 40% of the $1.4 trillion in outstanding student debt.

    Now, a 25-year-old with massive student debt probably doesn’t qualify for a mortgage. But they might be able to get a car loan, which partially explains why auto loans are rising right along with student loans. A car is necessary to get to work, and borrowing is the only way to get a car if a big piece of your income is going towards student loan interest.

    [​IMG]

    [​IMG]

    So that’s our world: Stocks, bonds and real estate – long since acquired by baby boomers who graduated college with minimal student debt and therefore had the cash flow to invest – are way up, making us the richest generation ever. Meanwhile our kids and grandkids are going ever deeper in debt with no apparent way out.

    Of course there is an eventual way out: Someday they’ll inherit our manipulated wealth. But in the meantime their inability to cover our Social Security and Medicare is forcing the government to pick up the slack with trillion-dollar deficits as far as the eye can see, more or less offsetting the value of our estates.

    The only real solution? A massive devaluation that shifts resources away from owners of financial assets like bonds and towards debtors who get to discharge their loans with cheaper currency. All roads, in short, lead to currency crisis — and soaring gold and silver.

    http://news.goldseek.com/DollarCollapse/1518817324.php
     
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    JPMorgan Has the Biggest Silver Position in Modern History | SD Weekly Metals & Markets
    SilverDoctors



    Published on Feb 16, 2018
    https://sdbullion.com
    http://www.silverdoctors.com/precious...

    JPMorgan has more silver than anyone else in recent history. Their COMEX position is more than 133 million ounces, says James Anderson of SDBullion.

    In this week’s SD Metals & Markets with Elijah Johnson, Eric Dubin, and James Anderson:

    Is JPMorgan giant silver position used for price manipulation?
    If silver is being manipulated, and the manipulation gets exposed, then be ready for vertical moves in silver.
    Why own precious metals?
    Why is the U.S. dollar falling when interest rates are rising?
    Idaho says investors don’t have to pay state capital gains tax on gold and silver.
     
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    Demand for Silver and Gold Spiked as the Markets Tanked
    Silver Fortune



    Published on Feb 16, 2018
    Some insight, and proof, of what happens to silver and gold demand when the stock market is crashing.

    SD Bullion's Deal, buy 19 and get the 20th free: sdbullion.com/sf
     
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    Charles Hugh Smith – All Currencies Will See Catastrophic Drop
    Greg Hunter



    Published on Feb 17, 2018
    Financial writer Charles Hugh Smith sees one very big problem coming at us, and that is a dramatic loss in buying power of the U.S. dollar, but it’s not just the dollar. According to Smith, “All these currencies, there is nothing backing the currencies except the government’s force. That’s the yen, the euro, the dollar and the Chinese yuan. They are all going to have a catastrophic drop against real assets because they are all based on too much leverage, too much debt, too much money being pumped into the financial system that ends up in unproductive speculation. You can’t grow your debt at six times the rate of your economy. In other words, if you are creating $6, $8 or $10 of debt to eke out $1 of low productivity growth, you are dooming your currency, and all currencies are doing the same thing. All the currencies are going to take a big drop at some point . . . relative to real stuff. Real stuff is commodities we need: water, grains, food, oil, natural gas and, of course, precious metals. Everybody knows they have been money for 5,000 years, and I personally feel there is a role for crypto currencies.”
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Published on Feb 18, 2018
    i am here to talk about farming and al that goes with it. not this time though its about school shootings.
     
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