Bill Murphy: Fundamentals Will Push Gold & Silver To Spectacular Levels

 

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Bill Murphy: Fundamentals Will Push Gold & Silver To Spectacular Levels



 

 

Some sort of Black Swan event will come out of nowhere and cause an explosive move in gold and silver – Bill Murphy on Shadow of Truth

 

In the absence of intervention, gold and silver would be trading at a level that is a few multiples higher from they “trade” now. At some point, some entity will want to take possession of a big “chunk” of gold or silver and will stand for delivery of the physical with the intent to remove that gold or silver from COMEX vaults.

 

For now, the big accumulators of physical gold (China, Russia, India) are content with the current rigged market price of gold as long as the West can continue to make deliveries into these countries. But at some point the West’s “cupboard” will be bare and big buyers will see what the COMEX really has in its vaults. It’s at that point when the precious metals market will become interesting.

 

There is always the threat that the Shanghai Gold Exchange begins arbitraging out the price difference between the physical market (eastern hemisphere) and paper market (Comex, LBMA). Currently, silver trades in China’s physical settlement market (Shanghai Futures Exchange) at a significant premium to the price on the COMEX paper market. The week of October 17, 2016, the average difference was well above $0.80 per ounce. This represents approximately a 45% difference. How large must the difference become before the physical market naturally overwhelms the paper market? The difference in the physical gold market is not quite as dramatic as the physical silver market, but it seems a natural progression will occur in the not too distant future. The physical market is filled with people that are not interested in paper contracts. These people are in real markets located in the eastern hemisphere – China, India and other countries. In these countries, gold is either part of the culture or there is an understanding of gold’s role as a currency.

 

In today’s episode, we sit down with GATA/LeMetropolecafe.com’s Bill “Midas” Murphy about the extreme intervention in the precious metals market and the catalysts that will eventually override the Central Bank intervention.

 

 

 

 

Please email with any questions about this article or precious metals HERE

 

 

 

 

 

 

Bill Murphy: Fundamentals Will Push Gold & Silver To Spectacular Levels

Posted with permission and written by Rory Hall and Dave Kranzler (CLICK FOR ORIGINAL)

 


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Mega-Merger Monday Gains Gone As Crude Crunch Drags Stocks Lower

But everything was awesome yesterday?

 

China currency continued to collapse overnight but a small bid came in this afternoon…

 

Breadth continues to breakdown…

 

While Nasdaq held most of its gains, the othe rmajor indices gave up most of yesterday's exuberance…

 

No end of day ramp for the 9th day of the last 10 days…

 

Similar pattern in futures today as yesterday…

 

Technically, S&P Futs were unable to break the 50DMA resistance…

 

Treasury yields inched lower on the day despite tepid 2Y auction…

 

The USD Index ended unch despite chaotic swings in GBP and JPY…

 

Note the machines appeared set on busting 99.00 on the day…

 

With the usd oscillating higher to unch, PMS were bid (and copper outperformed) as oil slumped…

 

This is the first close below $50 since oct 4th… (ahead of tonight's API data)

 

Gold tested back above its 200DMA once again…

 

Charts: Bloomberg

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Man Must Alert Police to Every New Sex Partner After Being Cleared of Rape Charges Twice

A British man has been banned from entering bars after 9 p.m. and must alert police every time he intends to have sexual contact with someone new after being found innocent of sexual assault and rape charges in two jury trials.

Think you must have read the above sentence wrong? Probably not. Despite being deemed innocent by his peers—twice—Nicholas Crawshaw, 23, is now subject to a civil “Sex Risk Order” after local cops weren’t content to let the trials-by-jury stand.

Initially, Crawshaw stood accused of sexually assaulting eight women between 2010 and 2015. In March 2016, a jury found him not guilty of several of the counts but couldn’t decide on others, spawning a retrial. In that trial, which concluded October 18, Crawshaw was found not guilty of the remaining eight offenses. After spending 16 months in prison—and being cleared of all six counts of rape, three counts of sexual assault, and two counts of assault by penetration that had been facing him—Crawshaw was allowed to go free.

Following the second trial, local prosecutor Alison Mutch said, “We respect the decision of the jury.” But that respect was apparently short-lived. On October 21, just three days after Crawshaw was cleared of all charges against him, Cheshire Police initiated civil proceedings to impose an interim “Sex Risk Order” on Crawshaw.

Speaking for Cheshire Police, Elizabeth Heavy told the court that Crawshaw was a “sexual predator” who had “admitted sexual contact” with several of the women who had accused him. Crawshaw “admitted in the course of criminal proceedings that he had sex with one complainant in a toilet in a nightclub,” Heavy pointed out, and he said he met “many” complainants in nightclubs or bars. “It is for [these] reasons that the application has been drafted,” she said.

It’s true that Crawshaw admitted to sexual contact with some of his accusers. It’s also, on its own, irrelevant to whether he’s a “sexual predator.” The sexual contact Crawshaw admitted to was, he claims, consensual. The accusers claimed it was not. The jury found Crawshaw more credible.

But West Cheshire magistrates agreed, at least temporarily, with the local cops’ logic in this case. On Monday, they issued a temporary Sex Risk Order against Crawshaw which prohibits him from going into places that serve alcohol after 9 p.m. and requires him to inform local police beforehand every time he intends to have “sexual contact” with someone new. In November, magistrates will hold a full hearing to determine how long the order will stay in place.

According to Sky News, more than 50 Sex Risk Orders have been issued by British authorities, although only one prior order requires its subject to notify the government of every new sex partner. That order, issued in 2015 against John O’Neill, was subsequently deemed “unpoliceable” by a York Magistrates’ Court. However, the only adjustment York magistrates made to O’Neill’s order was that he needn’t inform cops 24 hours before starting a new sexual relationship but merely “as soon as is reasonably practicable.”

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Dump “Don’t Treat Us Like Dogs, You Son Of A Bitch” Duterte… For Starters

Submitted by Patrick Buchanan via Buchanan.org,

Alliances are transmission belts of war.

So our Founding Fathers taught and the 20th century proved.

When Britain, allied to France, declared war on Germany in 1914, America sat out, until our own ships were being sunk in 1917.

When Britain, allied to France, declared war on Germany, Sept. 3, 1939, we stayed out until Hitler declared war on us, Dec. 11, 1941.

As the other Western powers bled and bankrupted themselves, we emerged relatively unscathed as the world’s No. 1 power. The Brits and French lost their empires, and much else, and ceased to be great powers.

Stalin’s annexation of Central Europe and acquisition of an atom bomb, and Mao’s triumph in China in 1949, caused us to form alliances from Europe to Korea, Japan, Taiwan, the Philippines and Australia.

Yet, with the end of the Cold War, we did not dissolve a single alliance. NATO was expanded to embrace all the nations of the former Warsaw Pact and three former republics of the USSR.

This hubristic folly is at the heart of present tensions with Russia.

Now, Beltway hawks have begun to push the envelope to bring former Soviet republics Moldova, Ukraine and Georgia into NATO, with some urging us to bring in the Cold War neutrals Sweden and Finland.

Given the resentment of the Russian people toward America, for exploiting their time of weakness after the breakup of the Soviet Union, to drive our alliance onto their front porch, such moves could trigger a conflict that could escalate to nuclear weapons.

Moscow has warned us pointedly and repeatedly about this.

Yet now that the election is almost over, neocons burrowed in their think tanks are emerging to talk up U.S. confrontations with Syria, Russia, Iran and China. Restraining America’s War Party may be the first order of business of the next president.

Fortunately, after the Libyan debacle, President Obama has lost any enthusiasm for new wars.

Indeed, he has a narrow window of opportunity to begin to bring our alliances into conformity with our interests — by serving notice that the United States is terminating its 1951 Mutual Defense Treaty with Manila.

Philippine President Rodrigo Duterte is proving himself to be an unstable anti-American autocrat, who should not be entrusted with the power to drag us into war over some rocks or reefs in the South China Sea.

Earlier this year, we got an idea of what a commitment to go to war for a NATO ally might mean when President Tayyip Recep Erdogan, another mercurial autocrat, shot down a Russian plane that strayed over Turkish territory for 17 seconds.

Had Vladimir Putin retaliated in kind, Erdogan could have invoked Article 5 of NATO, requiring us come to Turkey’s defense against Russia.

Given how Erdogan has acted since this summer’s attempted coup, purging Turkish democratic institutions and imprisoning tens of thousands, do the benefits of our NATO alliance with Ankara still outweigh the risks?

Duterte harbors a lifelong grudge against America for our war of 1899-1902 to crush the Philippine independence movement, after Admiral Dewey sank the Spanish fleet in Manila Bay. We liberated the Philippines, only to annex them.

A longtime mayor on Mindanao before being elected president, Duterte is reputedly the godfather of death squads that executed drug dealers and users. Now, the practice has apparently been introduced nationwide.

While campaigning, Duterte said he would Jet Ski 120 miles to Scarborough Shoal, which is occupied by China though it is in Manila’s territorial waters. Since then, he has flipped and become outspokenly pro-China.

Before attending a summit in Laos, Duterte called President Obama “the son of a whore.” He has insulted America and canceled joint military exercises. In Beijing he announced a “separation from the United States. … No more American influence. No more American [military] exercises. It’s time to say goodbye.”

“I would rather go to Russia and to China,” he added.

President Obama should email President Duterte: “Message received. Accept your decision. Good luck with the Russians and Chinese.”

Would termination of our Mutual Defense Treaty mean severing ties with the Filipino people? By no means.

What it would do, though, is this: restore America’s absolute freedom to act or not act militarily in the South China Sea, according to our interests, and not Duterte’s whims.

Whether we intervene on Manila’s behalf or not, the decision would be ours alone. Terminating the treaty would absolve us of any legal or moral obligation to fight for Scarborough Shoal, Mischief Reef or any of the other rocks in a South China Sea that are now in dispute between Beijing and half a dozen nations.

A U.S. decision to terminate the treaty would also send a wake-up call to every ally:

America’s Cold War commitments are not forever. Your security is not more important to us than it is to you. As Donald Trump has been saying, we are starting to put America first again.

On this, maybe even President Obama could find common ground.

*  *  *

And judging by Duterte's new comments this morning "I tell you, you son of a bitch, don't treat us like dogs," he is mutually agreeable to the cold shoulder from America…

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Former Pennsylvania Attorney General Who Said She Was Fighting Corruption Going to Jail

Former Pennsylvania Attorney General Kathleen Kane, a Democrat, has been sentenced to 10 to 23 months in prison after being convicted of multiple charges related to her efforts to embarrass her political enemies, including conspiracy, obstruction, and two felony perjury charges that carried a maximum sentence of 7 years each.

Kane did not resign her position until she had been convicted, and had insisted late into the process that she was a victim of an “old boys club” network she was trying to dismantle. This as she shut down corruption investigations into Democrats and among her first acts opened a seemingly politically motivated investigation into former Republican Governor Tom Corbett’s handling of the Penn State child sex abuse scandal (unsurprisingly, no wrongdoing was found). An investigation into a turnpike pay-to-play scheme led to a number of plea deals but no official serving any jail time.

Her criminal convictions stemmed from documents her office leaked related to a 2009 investigation into an NAACP chapter president led by a prosecutor in her office she considered an enemy and which did not lead to any charges. The leaks were part of an effort to draw attention away from her shut down of the investigation into corrupt Democrats and her failure to secure prison terms for anyone implicated in the turnpike pay-to-play scheme. After her legal woes started, she began to investigate the exchange of pornographic, racist, and misogynistic messages sent by various state employees over government email, including two state Supreme Court justices who eventually resigned.

Wendy Demchick-Alloy, the judge who sentenced Kane, accused her of being a political neophyte who remained a campaigner after winning office. This case is about ego—the ego of a politician consumed with her image from Day One,” the judge said. “This case is about retaliation and revenge against perceived enemies who this defendant… felt had embarrassed her in the press.”

Former members of her staff testified about the conditions in the office of the attorney general as the district attorney pushed for a stiff sentence. “Through a pattern of systemic firings and Nixonian espionage, she created a terror zone in this office,” one prosecutor that worked for her told the court. Kane argued that the consequences of her actions so far—she lost her license to practice law and says she’s lost her career and reputation as well—were punishment enough.

In addition to her sentence, Kane will be on probation for eight years.

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Equity Risk Tumbles As Trump Closes Gap On Clinton

Despite the constant puke of propaganda that a Trump presidency will bring hell on earth and crash stock markets (remember Brexit?), it appears market participants are much more concerned about a Clinton win

As Clinton's lead soared following 'pussy-gate', so investors piled into protection, bidding VIX up from 13 to 18…

During the last week, Trump has regained some momentum and VIX (equity risk) has tumbled.

Perhaps tyranny is what markets are most afraid of, as Larry Lindsay warned,

"it's pretty clear what side the news media is on here and that is something that should worry markets after the electionIf Mrs. Clinton becomes President, who will keep an eye on her, on the kinds of side-deals that may be happening, on the regulatory abuses…?"

But we do note that the Peso remains convinced of a Clinton victory (or Trump loss)…

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Did “The Russians” Hack The DMV Too? Statewide California Systems Down Due To “Major Computer Outage”

It must have been the Russians, right? CBS Los Angeles reports that officials Tuesday were working to fix a “major computer outage” at California Department of Motor Vehicles offices statewide.

 

 

Customer transactions at dozens of DMV field offices were impacted by the outage, including offices in Los Angeles, Hollywood, Compton, El Monte, Fullerton, and Thousand Oaks.

Any DMV offices affected “will continue providing drive tests, making return appointments, helping with paperwork, and answering customer’s questions”, a DMV spokesperson confirmed.

Online services on the DMV website did not appear to be affected, officials said.

DMV says “Crews have been working all night to rebuild the system and get offices back up and running.”

It wasn’t immediately clear whether the outage was linked to a massive cyber attack last week on server farms of a key Internet firm that repeatedly disrupted access to major websites and online services including Twitter, Netflix and PayPal.

Some customers also reported a similar problem on Monday. And some Twitter users complained about the issues as far back as Oct. 19. People are not happy…

And we know one 16-year-old girl who will be very upset tomorrow if this is not fixed.

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Deutsche Bank Considering Alternatives To Paying Cash Bonus

It has been at least a few weeks since Deutsche Bank appeared in the flashing red breaking news sections of newswires, with news that was – mostly – negative. And while the stock has since rebounded materially, wiping out all losses since the DOJ’s $14 billion RMBS settlement leak, it appears that not everything is back to normal for the largest German lender. Because in what may be the worst news yet for DB’s employees, moments ago Bloomberg reported that the German Bank is exploring “alternatives to paying bonuses in cash” as Chief Executive Officer John Cryan seeks to boost capital buffers.

According to Bloomberg, DB executives have discussed options including giving some bankers shares in the non-core unit instead of cash bonuses. Another idea under review is replacing the cash component with more Deutsche Bank stock.

The supervisory board may discuss the topic of variable pay at a meeting on Wednesday though no final decisions are expected, the people said, the day before it reports third-quarter earnings. The measures, if pursued in the coming months, would mostly impact the investment bank, the people said. The Frankfurt-based lender is still considering other alternatives, they said.

As Bloomberg adds, any bonus-related decision will depend on the size and timing of Deutsche Bank’s settlement with the U.S. Department of Justice over a probe into the the sale of faulty real-estate securities. Last year, Deutsche Bank awarded staff 2.4 billion euros ($2.6 billion) of bonuses for 2015, 1.45 billion euros of which was for the combined investment banking and trading unit. Of the 2.4 billion euros, 49 percent was deferred stock and cash while the remainder was paid out immediately.  It appears that DB wants to take the 49% number and make it bigger.

The idea echoes a similar move by Credit Suisse Group AG at the height of the financial crisis, when the Swiss firm used its most illiquid loans and bonds to pay employees’ year-end bonuses.

The report is comparable to a similar announcement made exactly one year ago, when DB announced it may slash bonuses by as much as one third. Since then, however, DB’s aggressive cost cutting initative has made life for the bank’s employees progressively more miserable. Since taking over in 2015, Cryan has suspended the dividend, reduced bonuses, cut risky assets, frozen new hiring and announced plans to shed some 9,000 jobs. The CEO has already said Deutsche Bank may fail to be profitable this year after posting the first annual loss since 2008 last year. Now, DB bankers may end up getting “paid” in some of the billions in impaired tanker loans, carried quietly on the bank’s book, if not CDS or interest rate swaps. Those DB certainly has a lot of.

Should DB be successful with this significant shift in compensation strategy without leading to an exodus of workers, it will likely be attempted at other banks as the core problems facing Deutsche Bank, namely declining profitability, have now become systemic across the entire banking sector. Which is bad news for investment bankers everywhere.

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Trump’s Insane Immigration Plan Would Add Yet Another Unnecessary Mandatory Minimum

Donald Trump announced his proposed plan for his first 100 days in office on Sunday, including new mandatory minimum sentences for illegal border crossings, which already make up nearly half of all federal prosecutions annually.

In addition to his—frankly insane—plan to build a border wall and somehow force another sovereign nation to pay for it, Trump’s proposal to thwart illegal immigration would establish “a 2-year mandatory minimum federal prison sentence for illegally re-entering the U.S. after a previous deportation, and a 5-year mandatory minimum for illegally re-entering for those with felony convictions, multiple misdemeanor convictions or two or more prior deportations.”

Currently, illegal re-entry is punishable by up to two years in prison, although a prior criminal record can add more years to a sentence. Last year, Republicans in Congress introduced a bill called “Kate’s Law,” named after Kate Steinle, who was shot and killed by a man with several violent felonies and illegal re-entries into the country. That bill would have also strengthened sentences for illegal re-entry, but advocacy groups that oppose mandatory minimums say Trump’s proposal would go even further.

“This is Kate’s Law on steroids,” says Kevin Ring, the vice president of Families Against Mandatory Minimums. “I don’t know if our country has enough backhoes to build all the new prisons we’d have to to implement this dumb idea.”

Illegal entry and re-entry is already one of the most prosecuted crimes in the U.S. and sucks up an enormous amount of federal resources. According to a report by Grassroots Leadership earlier this year, prosecutions of illegal entry and re-entry into the country already makes up 49 percent of the federal caseload every year. Foreign nationals make up 22 percent of the federal Bureau of Prisons system, which was operating at 20 percent over its maximum capacity as of 2015. The current average sentence for illegal re-entry is 18 months, according to the report.

To try and deal with both the huge amount of immigration cases and the small number of federal judges, the Bush administration created Operation Streamline in 2005, which allowed federal courtrooms to handle dozens of illegal entry and re-entry cases in a single hearing. The program continued to escalate under President Obama, reaching nearly 100,000 immigration prosecutions in fiscal year 2013. The feds took their foot off the gas in 2014, but roughly three-quarters of a million people were prosecuted under the program over a 10-year-period.

“Nothing has worked to stem the tide [of illegal immigration],” retired federal judge Felix Recio, who served from 1999 to 2013 in Brownsville, Texas, said in a conference call with reporters in July shortly after the release of the report. “The only thing we have done is destroyed the lives of many people who only desired to exercise their human rights to feed and care for their families.”

Former federal prosecutor Ken White wrote at the blog Popehat in September that Trump’s claim that mandatory minimums would have an impact on illegal immigration is “crowd-pleasing bunk”:

Even with fast-track programs in place, and even with immigration crimes taking up a very large percentage of federal criminal efforts, only a small percentage of illegally returning deportees are prosecuted criminally. A tiny percentage of first-time illegal entries face prosecution. There are no resources to do more. U.S. Attorney Offices generally create internal guidelines to determine which cases they’ll prosecute. For instance, when I was a federal prosecutor in the 1990s, the Los Angeles office only prosecuted cases involving aliens with prior aggravated felonies or lots of prior deportations. Those days, the office—one of the biggest in the country—indicted about 1,200 – 1,500 cases a year total. That number is lower now. It cannot make a statistically significant impact on immigration crime.

What it can make a statistically significant impact on is the Justice Department budget. The prosecution and incarceration of illegal entry and re-entry offenders under Operation Streamline has cost $7 billion since 2005, according to the Grassroots Leadership report.

Trump’s fabulous, just really tremendous border wall could also cost up to $25 billion, according to a Washington Post estimate.

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