Harvey Weinstein, Tim Murphy, and Political Hypocrisy

Last week saw not one but two disturbing scandals involving powerful men and sex. Movie mogul Harvey Weinstein, a major force in Democratic Party fundraising and activism, has been fired from the company he co-founded in the wake of reports that he serially harassed actresses for decades. Rep. Tim Murphy, a married, eight-term, pro-life Republican from Pennsylvania, resigned after it came out that he wanted his mistress to have an abortion during a pregnancy scare.

Each situation underscores the massive hypocrisy liberals and conservatives, Democrats and Republicans, traffic in. Each also helps explain why Americans are right to want the government out of our lives as much as possible. When the people who fund politicians and the politicians themselves are so full of awfulness, who in their right mind would give such figures the right to dictate any part of our lives? It’s no wonder that support for a “major third party” is higher than ever, according to Gallup.

Weinstein has a long and phenomenal clip reel as a movie man before being fired yesterday from The Weinstein Company.. Founded in 1979 with his brother Bob in Buffalo, New York of all places, Miramax, his original movie company, set out to produce and distribute independent movies at the very moment that Hollywood had seemingly turned all of its attention to blockbusters and tent-pole pictures. Among its offerings were movies that helped create the indie boom of the 1980s and ’90s: Sex, Lies, and Videotape, Pulp Fiction, and Clerks. As distributor of Errol Morris’ The Thin Blue Line and 1990s’s Paris Is Burning, Miramax helped revive theatrical-release documentaries. It didn’t stint on Oscar bait either, as films such as Shakespeare in Love, The English Patient, Good Will Hunting, and The Crying Game attest.

The mix of critical praise and boffo box office gave Weinstein an immense amount of power in the entertainment industry and, despite a reputation of being a total asshole, he also bought his way into the highest circles of Democratic Party fundraising and access to glamour pols such as Hillary Clinton, John Kerry, Al Franken, Kristen Gillibrand, Chuck Schumer, Cory Booker, and Elizabeth Warren. Even his threatening to “rip” future Virginia Gov. Terry McAuliffe’s balls off couldn’t hurt his standing as long as the green was flowing. As Jezebel puts it,

According to the Center for Responsive Politics, he’s shelled out hundreds of thousands of dollars to the Democratic Senatorial Campaign Committee (DSCC) and the Democratic National Committee (DNC), and has also donated to state Democratic parties; in total, his political donations amount to over $1.4 million….

During Obama’s 2012 campaign, Weinstein was noted as a top “bundler” from the entertainment industry as Hollywood money swept in to fill the donation gap left by a newly-regulated Wall Street. Shortly before that year’s election, Republicans were infuriated by news that the film Seal Team Six: the Raid on Osama bin Laden, premiering just days before the election, was tweaked by Weinstein himself to expand Obama’s role. Malia Obama interned for Weinstein this past spring, two years after Weinstein was publicly accused of groping Italian model Ambra Battilana.

“Across the years and continents,” reports The New York Times, “accounts of Mr. Weinstein’s conduct share a common narrative: Women reported to a hotel for what they thought were work reasons, only to discover that Mr. Weinstein, who has been married for most of three decades, sometimes seemed to have different interests.” Multiple women said that Weinstein, often clad only in a robe or pajamas, would ask them to massage him or watch him shower. Among the women were actresses such as Ashley Judd, then starting her career, and he paid settlements to others, such as actress Rose McGowan, after an incident in 1997.

If Weinstein’s behavior calls to mind the worst sort of casting-couch scenarios of Hollywood’s supposed golden age, his response to the accusations in the Times’ story is literally unbelievable. In the past, he had chalked up his behavior to blood-sugar problems (seriously). This time around, he has simultaneously denied the allegations, threatened to sue the Times for defamation, and blamed it all on a being a leading-edge baby boomer.

In a statement to the Times, he said:

I came of age in the 60’s and 70’s, when all the rules about behavior and workplaces were different.

More bizarrely, he ended his statement to the Times by trying to change the topic to…gun control:

I am going to need a place to channel that anger so I’ve decided that I’m going to give the NRA my full attention. I hope Wayne LaPierre will enjoy his retirement party. I’m going to do it at the same place I had my Bar Mitzvah. I’m making a movie about our President, perhaps we can make it a joint retirement party. One year ago, I began organizing a $5 million foundation to give scholarships to women directors at USC. While this might seem coincidental, it has been in the works for a year. It will be named after my mom and I won’t disappoint her.

The only thing more pathetic than such an impotent rhetorical gesture is the non-response of Hollywood liberals who have largely either stayed silent so far or, like director Rob Reiner, tried to blame shift even further by turning to Fox News’ sexual harassment scandals. Then there’s Saturday Night Live‘s Lorne Michaels, who explained his show’s lack of jokes at Weinstein’s expense over the weekend by gnomically claiming, “It’s a New York thing.”

Which brings us perhaps to Tim Murphy, whose Republican Party is headed by a president from Queens who was caught on tape bragging that because he was famous he could “grab [women] by the pussy.” Murphy’s relationship with a married psychologist named Susan Edwards came to light last month when her husband sought to depose the congressman as part of a divorce proceeding. While that was difficult enough for a 65-year-old family values conservative to withstand, Politico reports that it was only when messages about a possible abortion between Murphy and Edwards came to light that the representative’s career definitely tanked.

“And you have zero issue posting your pro-life stance all over the place when you had no issue asking me to abort our unborn child just last week when we thought that was one of the options,” Edwards texted to Murphy in late January, according to the Post-Gazette.

Edwards was responding to a Facebook post by Murphy, touting his anti-abortion position in Congress. Murphy is a member of the House Pro-Life Caucus and voted this week for legislation to ban abortions after 20 weeks.

Murphy’s resignation, which came just a day after he had originally announced plans to retire at the end of his term in 2018, produced a bland thank-you note from Speaker Paul Ryan:

“It was Dr. Murphy‘s decision to move on to the next chapter of his life, and I support it,” Ryan said in a statement. “We thank him for his many years of tireless work on mental health issues here in Congress and his service to the country as a naval reserve officer.”

If Harvey Weinstein wielded near-absolute power in Hollywood, Murphy had created a personal fiefdom in Pennsylvania’s 18th Congressional District, winning 100 percent of the vote in 2014 and 2016. A former psychologist focusing on child development, he was a power player among pro-life groups but, like Weinstein, was known for treating support staff in abusive, angry ways. His chief of staff wrote a memo noting “unprecedented” 100 percent turnover in staff due to his fits and calling him out for his “inability to communicate without expressions of rage, criticisms or insults.”

Far more important that personal comportment, though, is that someone like Murphy is in a position not simply to make laws about his own life, but about all of ours. Republican hypocrisy about abortion is nothing new—in 1992, pro-life advocates attacked Vice President Dan Quayle when he said he’d support his daughter’s hypothetical choice to get an abortion and in 2014 it came out that Tennessee Rep. Scott DesJarlais had counseled both an ex-wife and a mistress to get abortions—but it still rightly shocks.

Gallup reports that even though self-identified political independents dipped below 40 percent for the first time in five years, Republicans and Democrats are struggling to gain and keep voters. Self-identified GOP members come in at just 28 percent of voters and Democrats pull 31 percent, well below either party’s historical highs. And fully 61 percent of voters believe that a major third party is needed to better represent our views in national politics.

That’s a new high and given the revelations of the past week and, doubtless, weeks to come, that figure will only climb.

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Corker Says White House An ‘Adult Daycare Center,’ Weinstein Company Fires Harvey Weinstein, U.S., Turkey Suspend Most Visa Services: A.M. Links

  • Over the weekend, President Trump hate-tweeted Sen. Bob Corker (R-Tenn.), who responded by tweeting that the White House had turned into an “adult day care center.” Corker also said in an interview Trump could lead the country into World War III and was treating his job ” like he’s doing ‘The Apprentice’ or something.”
  • The Trump administration’s opening offer to Democrats in Congress on immigration includes funding for a border wall and cuts to grants to sanctuary cities.
  • The Weinstein Company fired Harvey Weinstein after new reports of a string of sexual misconduct allegations.
  • Blackwater founder Erik Prince is reportedly considering a run for Senate.
  • The U.S. and Turkey suspended non-immigrant visa services for nationals of each other’s countries.
  • A British tabloid worries about a vacation package on island off the coast of Colombia advertised as offering ulimited sex, drugs, and alcohol.

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After “Surreal” Feud Between Trump And Corker, “Tax Reform Is Dead. Full Stop”: Cowen

While Wall Street appears to have ignored the latest political spat within the Republican party over the weekend, in which Donald Trump lashed out at outgoing Senator Bob Corker, while the latter compared the White House to “daycare for adults”, and later warned Trump may launch World War III`, this particular feud involving the president may have dire consequences for the market, which in recent weeks has repriced a more than 60% probability (according to Goldman) that Trump’s tax reform will pass.

Well, according to Cowen analyst Chris Krueger, not so fast. In a note released this morning, Krueger writes that “tax euphoria may break this week, with the Senate budget back to zero-margin on vote as President Trump, Sen. Bob Corker feud.” And without a budget, “tax is dead. Full stop,” Krueger writes.

Cowen now sees the margin for passing a budget in the Senate as more challenging than in the House, plus “radically different” documents will have to be merged and passed again.

Passing FY 2018 Senate budget has “some eerie parallels” to health care, as no Democrats will vote for the budget; Sen. Rand Paul is expected to vote no because it doesn’t cut spending fast enough; Sen. John McCain also sounds like a no as it doesn’t repeal sequester, which disproportionately hits the Pentagon.

That means GOP can only afford one more defection, with Corker, a deficit hawk, engaging in “one of the more surreal public correspondence exchanges in recent memory” days after saying Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and White House Chief of Staff John Kelly help keep U.S. from chaos.

“Either Trump realizes that Corker can sink the remainder of the Trump/GOP legislative effort and is upset by that reality, or he didn’t/doesn’t know and just made it a reality. Either way, we see ZERO upside for the budget process/tax reform in this Twitter tantrum with the policy downside limit-down”

Maybe not: because in the premarket on Monday, bank stocks sensitive to potential tax cuts, are once again rising, suggesting all is well: JPMorgan up 0.3%, BofA +0.3%, Morgan Stanley +0.8%. Or perhaps this is just one more example of a market that is now so bored with incremental news flow which has zero impact on risk assets, that it is simply yet another “shock which no longer shocks.” Then again, as so many Wall Street analysts have warned, it is only a matter of time before one shock does finally shock the S&P, unleashing the spire of shocks, built of over years and years of non-resolution, and merely swept away under the rug with trillions in central bank liquidity injections.

Stated simpler, if indeed Trump tax reform is dead – again – a sharp market turnaround may be imminent.

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Spanish Bonds, Stocks Bounce As Officials Say “Door Open” For Dialogue

Mimiccing last week’s “stall” pump-n-dump, Spanish stock and bond markets are bid this morning following reports that a senior member of the Catalan regional government called for dialogue with Spain, saying that all of Europe faces economic damage unless a resolution is found.

As Bloomberg reports, after a weekend of mass demonstrations in favor of Spanish unity, Raul Romeva, foreign affairs chief for the separatist government in Barcelona, insisted that the door was open for talks if Prime Minister Mariano Rajoy was willing to engage.

“We need two to tango, we need the other side to be at the table,” Romeva said in an interview in Barcelona on Sunday.

 

“We’re always going to be at the negotiation table, but to start negotiations we need the other party to negotiate with.”

Of course, after Rajoy threatened the ‘nuclear option’ over the weekend, we suspect talks are the last thing on his Franco-ian mind, but for now markets are impressed with 2Y yields tumbling…

And stocks up (though showing some skepticism)…

 

As a reminder, Puigdemont has vowed to press ahead with his independence drive and is due to address the regional parliament Tuesday, while Rajoy pledged that “national unity will be maintained” by using all instruments available to him. That includes suspending the regional administration and sending in security forces.

“If this man unilaterally declares independence, measures will have to be taken and the government will take measures,” Deputy Prime Minister Soraya Saenz de Santamaría told Spanish radio.

 

She said action would be taken even if the government doesn’t win cross-party backing.

 

“We will seek support, but the act will not be left without a response from the government.”

The leaders of the Catalan National Assembly, a civic group that led a series of massive pro-independence demonstrations and works closely with Puigdemont, vowed that today’s session will see the president declare independence in a video posted on Twitter Sunday.

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Turkey Issues Arrest Warrant For Second US Consulate Worker, Lira Plunge Accelerates

One day after an escalating diplomatic spat, in which both the US and Turkey halted the issuance of non-immigrant visas to each other’s citizens following last week’s arrest by Turkey of a US consulate worker, on Monday Turkey issued another detention warrant for a second US consulate employee, Ahaber newspaper reports.

The market reaction to the rising diplomatic tensions has been dramatic, sending the Turkish lira crashing the most since the July 2016 failed “coup” attempt on Turkey’s president Erdogan, while local stocks and bonds tumbled in sympathy, the local Borsa Istanbul 100 index sliding, and now in correction territory having dropped more than 10% from its late August peak. The news of the second arrest have led to some further weakness in the Lira this morning, which crashed to a record low against a basket of currencies including the euro and the dollar.

Turkish NTV broadcaster reported that the consulate worker is still being sought by security officials, while his wife and child are being questioned by Turkish police. The reason for the arrest warrant has not yet been revealed. The warrant follows the arrest of Metin Topuz, who as we reported last week, was a Turkish citizen who worked at the US general consulate in Istanbul. He is alleged to have ties to exiled Turkish cleric Fethullah Gulen, whom Ankara blames for a failed coup attempt last summer and literally everything else that is wrong with Turkey.

The US Embassy in Turkey said that it was “deeply” disturbed over the “baseless, anonymous allegations” undermining “this longstanding partnership” between NATO allies. In its turn, Ankara said that the employee of the US Consulate General in Istanbul arrested by Turkish authorities had no diplomatic immunity.

A court has ruled that Topuz will remain in custody while his alleged links to Gulen are investigated. it was Topuz’s arrest that was the last straw, and prompted the US to suspend most visas for Turkish citizens. Hours laster, Ankara reciprocated in a tit-for-tat move.

That said, Ankara has yet to confirm the media reports. The Turkish justice minister said earlier he had no information about a new warrant being issued.

Media speculations of another arrest warrant comes amid the deterioration of relations between NATO allies over the arrest of a US consulate employee in Istanbul over alleged links to Islamic cleric Gulen, accused by Ankara of being behind the failed coup attempt in 2016. On Sunday, the US said it has suspended visa services in Turkey in all its diplomatic facilities in the country to “reassess Turkey’s commitment to security” of the US mission. Shortly after, Ankara responded with tit-for-tat measures and suspended visa services in the US, while the following day the Turkish Foreign Ministry summoned the undersecretary of the US embassy over the issue.

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Moscow Warns It May “Restrict” U.S. Media Operations In Russia

With relations between the US and Russia souring to the point where media outlets such as RT and Sputnik appear on the path to being effectively banned, the Russian foreign ministry said that it is within Russia’s rights to restrict the operations of U.S. media organizations in Russia in retaliation for what Moscow calls U.S. pressure on a Kremlin-backed TV station.

According to Reuters, Russian officials have accused Washington of putting unwarranted pressure on the U.S. operations of RT, a Kremlin-funded broadcaster accused by some in Washington of interfering in domestic U.S. politics, which it denies. Foreign ministry spokeswoman Maria Zakharova said the full weight of the U.S. authorities was being brought to bear against RT’s operations in the United States, and that Moscow had the right to respond.

“We have never used Russian law in relation to foreign correspondents as a lever of pressure, or censorship, or some kind of political influence, never,” Zakharova said in an interview with Russia’s NTV broadcaster. “But this is a particular case…”

She cited a 1991 Russian law which, she said, stated that if a Russian media outlet is subject to restrictions in a foreign country, then Moscow has the right to impose proportionate restrictions on media outlets from that country operating inside Russia. “Correspondingly, everything that Russian journalists and the RT station are subject to on U.S. soil, after we qualified it as restriction of their activities, we can apply similar measures to American journalists, American media here, on Russian territory,” Zakharova said.

She did not identify any specific U.S. media outlets that would be targeted. She said it made no difference from the Russian government’s point of view if those outlets were backed by the U.S. state, or privately-funded.

Late last month, Russia’s state communications regulator accused U.S. TV channel CNN International of violating its license to broadcast in Russia and said it had summoned the broadcaster’s representatives in connection with the matter. The watchdog did not publicly disclose the nature of the violation. The head of the regulator said it was a technical matter and denied that politics was involved.

Meanwhile, both Russia Today, and Russian officials have denied any attempt to interfere in U.S. politics. They say that political forces in the United States are whipping up hysteria about Russia’s influence to discredit President Donald Trump.

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Frontrunning: October 9

  • Thaler, Famed for ‘Nudge’ Theory, Wins Nobel Prize in Economics  (BBG)
  • Republicans Worry About Keeping Trump’s Middle-Class Tax Promise (BBG)
  • Catalan leader under pressure to drop independence (Reuters)
  • Spain Warns Catalonia Independence Bid Risks Economic Meltdown (BBG)
  • U.S. Asks Allies to Cut Off North Korea (WSJ)
  • “In 2004, I was the reporter at NY Times asked to look into allegations of sexual misconduct by Weinstein” (The Wrap)
  • Merkel’s Bloc Agrees to Limit Number of Refugees Entering Germany (WSJ)
  • Wall Street Firms Gambled on Puerto Rico. They’re Losing (NYT)
  • ECB still concerned about existing stock of bank bad loans: Mersch (Reuters)
  • U.S., Turkey Halt Visitor Visas Amid Diplomatic Spat; Lira Tumbles (BBG)
  • Amazon Has a Luxury Problem (WSJ)
  • Training Ground for Military Trauma Experts: U.S. Gun Violence (WSJ)
  • Moscow warns it may restrict U.S. media in Russia (Reuters)
  • Banks Pine for Loan Growth as Clients Wait on Trump’s Promises (BBG)
  • Some of TV’s Greatest Hits Move From Netflix to Well-Funded Hulu (BBG)
  • Flint’s River of Poison (BBG)
  • UAE Official Urges Qatar to Give Up World Cup to End Crisis (BBG)
  • Fed’s Dudley Sent Puerto Rico a Cash-Filled Jet as Money Ran Low (BBG)
  • Trump Pours Millions Into Money-Losing Scottish Golf Course (BBG)
  • How a Silicon Valley Striver Became the Alt-Right’s Tech Hero (BBG)

Overnight Media Digest

WSJ

– Over 20 nations have curbed North Korean diplomatic activities, more than a year after the U.S. State Department began a quiet global campaign to pressure Pyongyang. on.wsj.com/2wGy9Kn

– The White House sent Congress an expansive set of principles that would increase immigration enforcement at the border and inside the U.S. and would limit new legal arrival. on.wsj.com/2wI6fhb

– Weinstein Co’s board of directors fired co-chairman Harvey Weinstein from the independent movie and television studio on Sunday, citing allegations of sexual misconduct by one of the highest-profile producers in Hollywood. on.wsj.com/2wHTjrL

– German Chancellor Angela Merkel’s conservative bloc agreed to limit the number of refugees allowed to enter the country annually, in an attempt to bridge its differences on migration and form a much-needed united front in upcoming coalition talks. on.wsj.com/2wHoiE6

– Deutsche Bank CEO John Cryan has told associates he wanted nothing to do with Chinese conglomerate HNA, the bank’s largest shareholder. The iciness has irked Chairman Paul Achleitner, who helped woo HNA. on.wsj.com/2wGt8l9

– The Pentagon has taken over an effort to cut the cost of the F-35 combat jet, after rejecting plans proposed by Lockheed Martin and its partners, as it tries to make a program estimated to cost $400 billion more affordable. on.wsj.com/2wHOsGE

– Walt Disney’s Marvel Entertainment dropped a planned joint venture with Northrop Grumman Corp on Saturday after fans of its superheroes attacked the company via social media for its potential ties with the defense contractor. on.wsj.com/2wHa8mo

 

FT

– The City of London Corporation announced plans for a centralised court focusing on fraud and cyber crime. The new courtroom complex would be located on or around Fleet Street.

– “Ball is in their court”, Britain’s Prime Minister Theresa May is expected to tell other EU countries, as she pushes to make progress in deadlocked talks.

– European regulators raided offices of banking authorities in Poland and the Netherlands on an antitrust crackdown on lenders that block fintech rivals from gaining legitimate access to customer information.

– SoundCloud rival Mixcloud has struck a licensing deal with Warner Music to start a subscription business.

 

NYT

– The Weinstein Company fired its co-founder Harvey Weinstein on Sunday, after an investigation uncovered allegations that he had engaged in rampant sexual harassment. nyti.ms/2hZR9kN

– The expensive science-fiction sequel “Blade Runner 2049” collapsed at the North American box office over the weekend, taking in $31.5 million, or roughly 30 percent less than analysts had expected, as younger audiences and women failed to materialize in sizable numbers. nyti.ms/2hXB8LQ

– Dove dropped a Facebook ad for Dove body wash in which a black woman removes her brown shirt and underneath is a white woman in a light shirt. nyti.ms/2hZUpN3

 

Canada

THE GLOBE AND MAIL

** The Canada Revenue Agency has indicated that employee discounts will now be taxed. The CRA issued a recent tax “folio” indicating that employee discounts are to be considered taxable benefits, and part of their income. tgam.ca/2y4lZPw

** The Liberal government is attempting to move past the divisive debate on pipelines by forging a national energy strategy that promotes the transition to a low carbon economy while supporting oil and gas development. tgam.ca/2y4dIuR

** The flow of Canadian lumber into the United States should be embraced and not feared by Americans, Canada has told the United States International Trade Commission. The Canadian government is leading efforts to persuade the ITC to reverse January’s pro-U.S. decision in the cross-border trade dispute after the ITC issued a preliminary ruling in January, saying Canadian softwood is harming the United States lumber sector. tgam.ca/2y3cj7Q

NATIONAL POST

** Tim Hortons franchisees who created an association to address their grievances with parent company Restaurant Brands International Inc have filed a C$850 million ($678 million) class action lawsuit against the company, alleging the fast food operator is trying to intimidate its restaurant owners and force the franchisees who formed the group out of their restaurants. bit.ly/2y3WnlK

** A 37 year old woman and her young twins died following an early morning fire in Quebec’s Gaspe Peninsula on Sunday. Police spokeswoman Helene Nepton said there was a brief evacuation involving a dozen neighbours and none were injured. bit.ly/2y2Jg4b

 

Britain

The Times

– Pressure on the Bank of England to raise interest rates may be building more rapidly than first thought after a mistake by the Office for National Statistics led to domestic inflation being understated. bit.ly/2y2GAUq

– Aviva, one of Britain’s biggest property owners, has predicted the death of the traditional shop, as it warns that most physical stores on the high street will be wiped out by the relentless rise of online shopping. bit.ly/2y30myY

The Guardian

– Deliveroo is facing battles with local authorities over its use of kitchens on car parks and industrial estates in which chefs are making takeaway food for hip restaurants such as MEATLiquor, Busaba Eathai and Notting Hill’s Cocotte. bit.ly/2y31a6Y

– An internal study by EY of UK buyouts and merger deals involving foreign firms showed that the value of purchases of British-owned businesses fell in the first nine months of the year to its lowest level since 2010. bit.ly/2y3lV2u

The Telegraph

– Monarch Airlines’ private equity owner Greybull slashed its exposure to the airline through a complex deal with aviation giant Boeing just a year before it collapsed. bit.ly/2y3257q

– Swedish banking giant Handelsbanken has said it is committed to expansion in the UK, but added that it wants to see clarity on the terms of Brexit this year. bit.ly/2y1T0Mh

Sky News

– The board of Bread Holdings, which comprises Gail’s and Bread Factory, a wholesale business, has appointed KPMG to advise on options for the company. bit.ly/2y2lu8v

– RBS chairman Howard Davies warned there is now a “very, very, very tight” time frame for ministers to agree the terms of a transitional Brexit agreement with the EU, if it hopes to stop major finance firms moving jobs abroad. bit.ly/2y1Ywyn

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Perth Mint Gold Coins Sales Double In September

Perth Mint Gold Coins Sales Double In September

– Perth Mint gold coins see sales double on month in September
– Perth Mint silver bullion coin sales surge 78% in September
– Perth Mint sold 46,415 ounces of gold in September

– Nearly six times more gold coins sold at Perth Mint than U.S. Mint in September
– Sales surge at Perth Mint from low base; could indicate trend change and higher demand in coming months


Perth mint gold sales
Click image to enlarge

From Reuters:

The Perth Mint’s sales of gold products doubled in September from a month earlier, while silver sales surged 78 percent, the mint said in a blog post on its website on Tuesday.

Sales of gold coins and minted bars jumped to 46,415 ounces in September from 23,130 ounces a month ago, the mint said.

Silver sales during the month also rose to 697,849 ounces, compared with 392,091 ounces in August.

The Perth Mint refines more than 90 percent of newly-mined gold in Australia, the world’s No. 2 gold producer after China.

Spot gold prices recorded their biggest monthly drop for the year in September, pressured by the strength of the U.S. dollar amid increasing prospects of a December interest rate hike by the Federal Reserve.

From Smaulgld:

September Perth Mint gold coins sales topped U.S. Mint one ounce American Gold Eagle sales of 8,000 ounces by nearly six fold.

Perth Mint gold sales topped the U.S. Mint gold sales for the seventh month in a row.

Gold sales at the Perth Mint in September 2017 were down 21% from September 2016 sales of 58,811 ounces.

Perth Mint gold sales were up 101% in September from 23,130 ounces sold in August.

Sales of American Gold Eagles at the U.S. Mint in September 2017 were at a seventeen year low.

We will cover this in more depth tomorrow and compare and analyse the sharp increase in Perth Mint gold coin and silver coin demand with the still very low US Mint demand.

News and Commentary

Gold gains amid renewed North Korea fears (Reuters.com)

Chinese stocks rise after weeklong holiday (MarketWatch.com)

No Angst Seen Among Indian Investors as Local Flows Accelerate (Bloomberg.com)

Corker says he worries Trump’s recklessness could lead to ‘World War III’ (MarketWatch.com)

Dollar down from 12-week high vs yen as North Korea fears weigh (Reuters.com)


Weekly Precious Metal Price Changes (Ed Steer via GoldSeek)

Gold Readying to Rally (ZealLLC.com)

Gold and Silver Digest – Ed Steer (GoldSeek.com)

Bass On “Worthless” Puerto Rican Debt, The Crypto “Gold Rush”, And Guns (ZeroHedge.com)

JP Morgan Dimon’s status quo bias and the “internet replay” (StansberryChurcHouse.com)

US government lost nearly $1 trillion in FY2017. Again (SoveriegnMan.com)

Gold Prices (LBMA AM)

09 Oct: USD 1,282.15, GBP 976.23 & EUR 1,092.01 per ounce
06 Oct: USD 1,268.20, GBP 970.43 & EUR 1,083.93 per ounce
05 Oct: USD 1,278.40, GBP 969.28 & EUR 1,086.51 per ounce
04 Oct: USD 1,275.55, GBP 960.87 & EUR 1,085.11 per ounce
03 Oct: USD 1,270.70, GBP 959.00 & EUR 1,081.87 per ounce
02 Oct: USD 1,273.10, GBP 956.48 & EUR 1,084.55 per ounce

Silver Prices (LBMA)

09 Oct: USD 16.92, GBP 12.86 & EUR 14.41 per ounce
06 Oct: USD 16.63, GBP 12.73 & EUR 14.20 per ounce
05 Oct: USD 16.66, GBP 12.64 & EUR 14.19 per ounce
04 Oct: USD 16.83, GBP 12.67 & EUR 14.29 per ounce
03 Oct: USD 16.61, GBP 12.53 & EUR 14.13 per ounce
02 Oct: USD 16.58, GBP 12.46 & EUR 14.12 per ounce


Recent Market Updates

– Survey shows UK and US Pensions Crisis is Imminent
– Gold Investment In Germany Surges – Now World’s Largest Gold Buyers
– Yahoo Hacking Highlights Cyber Risk and Increasing Importance of Physical Gold
– Safe Haven Silver To Outperform Gold In Q4 And In 2018
– Plan For Run On The Pound
– Russia Gold Rush Sees Record Reserves For Putin Era
– China Catalyst To Send Gold Over $10,000 Per Ounce?
– Gold Matches S&P 500 Performance In First 3 Quarters; Up 12% 2017 YTD
– Gold Standard Resulted In “Fewer Catastrophes” – FT
– Financial Advice From Man Who Made $1+ Billion in 1929 – Importance Of Being Patient and “Sitting”
– “Gold prices to reach $1,400 before the end of the year” – GoldCore
– Commodities King Gartman Says Gold Soon Reach $1,400 As Drums of War Grow Louder
– Bitcoin “Is A Bubble” but Gold Is Money Says World’s Biggest Hedge Fund Manager

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

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Cowboys’ Owner Jerry Jones: “Players Will Be Benched For Disrespecting The Flag”

No Cowboys players kneeled during the National Anthem before Sunday night’s 31-35 loss to the Green Bay Packers. But that didn’t stop Dallas Cowboy’s owner Jerry Jones from confirming what many have long suspected: he has informed his players that taking a knee during the anthem would lead to them being benched immediately, the New York Post reported.

“If there’s anything that is disrespectful to the flag, then we will not play,” Jones told reporters after the game.

 

“Understand? We will not,” he said. “If we are disrespecting the flag, then we will not play. Period…We’re going to respect the flag and I’m going to create the perception of it. And we have.”

Jones then defended Vice President Mike Pence’s decision to walk out of Sunday’s 49ers-Colts game after more than 20 players took a knee during the National Anthem. President Donald Trump later tweeted that he had asked Pence to walk out.

“We cannot in the NFL in any way give the implication that we tolerate disrespecting the flag,” Jones said. “I know the vice president did leave, because in his opinion the teams were. We know that there is a serious debate in this country about those issues, but there is no question in my mind that the National Football League and the Dallas Cowboys are going to stand up for the flag. Just so we’re clear.”

The longtime NFL owner and general manager continued, “I’m saying our vice president, if in his opinion, there’s disrespect of the flag then he should express himself however he wants to say. He’s got rights, too. He felt that not standing for the flag is disrespectful. I do, too. The league in my mind should absolutely take the rules we’ve got on the books and make sure that we do not give the perception that we’re disrespecting the flag.”

As the NYP pointed out, while hundreds of NFL players have taken a knee during the national anthem in recent weeks, no Cowboys had taken part. Defensive lineman David Irving and Damontre Moore did raise fists on Sunday toward the end of the anthem as a gesture of solidarity, but they remained standing.

Jones told the Dallas Morning News that he was unaware of their actions.

“We as a team are very much on the page together,” he said. “We made our expression. I’m very supportive of the team, but under no circumstances will the Dallas Cowboys — I don’t care what happens — under no circumstances will we as an organization, coaches, players, not support and stand and recognize and honor the flag. Period.”

Just days after Trump referred to any player who would kneel during the anthem as a “son of a bitch” during a campaign rally in Alabama, Jones joined his team in taking a knee after the anthem had finished playing as a gesture of solidarity.

Meanwhile, for Jones and the other NFL franchise owners, it’s unclear whether denunciations like these will be enough to soothe angry fans and reverse the dip in game ratings and attendance witnessed since former 49ers QB Colin Kaepernick sat for the anthem for the first time during a pre-season game last year. As one survey recently uncovered, the contentious protests have contributed to making the NFL the most unpopular professional sports league in America.

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Dianne Feinstein: “No Law Could Have Stopped Las Vegas Gunman”

Four days after the NRA revealed its tentative support for a ban on “bump stocks” – a product that nobody had heard of until last week when Las Vegas shooter Stephen Paddock used them to convert semi-automatic rifles to fully auto – California Senator and vocal gun-control advocate Dianne Feinstein made a stunning admission on CBS’s “Face the Nation” when she said that "no law would’ve prevented Paddock" from carrying out his deadly plan.

Paddock, Feinstein says, was a “well-to-do” man who “wasn’t mentally ill” (this despite reports speculating that he may have been schizophrenic). Given his financial resources, grim determination and – most importantly – ability to easily pass background checks, his right to own a firearm was never in question.

JOHN DICKERSON: What do you make of increased sales of bump fire stocks in wake of this shooting and then now legislation?

 

DIANNE FEINSTEIN: See, I don't know what to make of it. What this event said – this is a well-to-do man, he wasn't mentally ill. Um, he wasn't a criminal, he wasn't a juvenile, he wasn't gang banger, and he was able to buy 40 weapons over a period of time, have 12 bump stocks, line them up, break through two windows in his hotel suite, and take aim at tens of thousands – well I guess over a thousand people at a concert. And this was such a cross section of America that it really struck at every one of us, that this could happen to you. And we want to stop it.

 

JOHN DICKERSON: Could there have been any law passed that would've stopped him?

 

DIANNE FEINSTEIN: No, he passed background checks registering for handguns and other weapons on multiple occasions.

 

JOHN DICKERSON: From the other side, those who would like to restrict guns in America, who hear a bill targeted as you've described it narrowly at this idea – at bump fire stocks – and say, "The only way to stop this kind of situation in America is to ban these kinds of semi-automatic weapons, and weapons that can fire with rapidity, and anything short of that is insufficient." What do you say to those people?

 

DIANNE FEINSTEIN: I agree with them to a great extent. What I don't – because, as you know, I did the assault weapons legislation in 1993, which was law of the land for 10 years. So I believe, I mean I've watched this thing from the Texas bell tower to today, in schools, in businesses, in workplaces. No one appears to be safe anywhere.

This admission from Feinstein is surprising, considering her longtime support for gun control (she helped champion the 1993 assault weapons ban) and the fact that she was one of the first to speak out about the need for more effective gun control laws following the Las Vegas shooting, offending many victims and their families in the process with her transparent attempt to politicize the tragedy.

Feinstein, it’s worth noting, is one of the sponsors of the bill to ban bump stocks that has garnered support from many Republican legislators and the White House. Bump stocks are already banned in California. The NRA has said it would support “additional regulations” on the devices.

“Face the Nation” Host John Dickerson quickly turned the conversation to the Russia investigation, prompting yet another revealing, but ultimately unsurprising, admission from the longtime California senator. Namely, that the Senate Intelligence Committee’s investigation into collusion between Russia and the Trump campaign has yet to find evidence. Though she later insinuated that Chairman Richard Burr – who delivered a memorable status update last week – and his fellow Republicans have been trying to undermine the investigation, without elaborating as to how. She added that proof will "likely" be uncovered by the Mueller investigation which has grand jury power… although if that were the case, one would expect it to have been leaked by now.

JOHN DICKERSON: Let me switch here to another topic for you, which is the Senate Intelligence Committee work that you've been doing. Chairman Burr of that committee said that the question of collusion between the Russians trying to influence the election and the Trump campaign was still an open question. Is that because there's more disclosures that suggest it's a possibility, or just because nothing's been found yet, and it's an open question because there's no proof that it's happened?

 

DIANNE FEINSTEIN: I think the latter. It's an open question because there's no proof yet that it's happened, and I think that proof will likely come with Mr. Mueller's investigation. He's got the ability to use a grand jury. He's got the ability to use the power of subpoena without question. And he's got the ability to do a criminal investigation. And that's what's going on, and I think that's where the information will come.

 

What happens in a political body, and I am finding this as the ranking member on the Judiciary Committee, everything has to be negotiated with the party in power, and it's very difficult to do an investigation under those circumstances.

Does the fact that Paddock would’ve easily sailed through background checks suggest that the rush to judgment after the shooting was premature? Perhaps: more importantly, instead of a blanket solution, perhaps the far bigger issue at hand here is the gradual devolution of US society, where banning guns is simply dealing with the symptoms of what is fundamentally a far more troubling – and bigger – underlying malady, one which has its foundation in the unprecedented splintering and polarization of American society, and where contrary to cheap talking points, there sadly is no simple solution how to "get things back to normal."

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