Prophecy Watch-Show me the Money

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 Store up your treasures in heaven!

Stocks Crater  530.+ points at closing DOW

$40 a barrel oil with Commodities falling

Traders wonder what Monday will bring?

David Stockman:  Stocks are Huge Disaster Waiting to Happen

Newsmax Finance  by FJ McGuire  Friday 07, August, 2015

Newsmax Finance Insider and former White House budget director David Stockman is quite blunt about his distrust of the current stock market: “It’s a huge disaster waiting to happen.”

“I think it’s pretty obvious that the top is in,” the Reagan administration’s OMB director told CNBC. “It’s just waiting for the knee-jerk bulls, robo traders and dip buyers to finally capitulate.”

And upon closer inspection, Stockman’s theory seemingly has a point.

Yes, the S&P 500 isn’t all that far from its recent record high. But the S&P 500 hasn’t suffered a 10 percent correction since October 2011. Since 1946, the average period between corrections has been about 18 months.

And more than half of the Nasdaq Composite’s more than 6 percent gain in 2015 comes from just six stocks — Amazon.com, Google, Apple, Facebook, Netflix and Gilead Sciences, according to brokerage firm JonesTrading.

And for the S&P 500, Amazon, Google, Apple, Facebook, Gilead and Walt Disney have provided more than all of its 0.3 percent climb.

This could presage a sharp drop for the market as occurred after the peaks of 2000 and 2007, periods that also saw the late gains sparked by only a few stocks, other experts have warned.

So it’s actually pointless for investors to keep worrying about monthly employment data and losing sleep over when, and if, the Federal Reserve will finally start hiking interest rates. “The larger picture has nothing to do with the jobs report [Friday] or even the September decision by the Fed,” he said.

 

“It has to do with the fact that the world economy, including the U.S., is heading into what is clearly going to be an epochal deflation to the likes of what we have never experienced in modern time.”
Stockman warns that the collapse in China’s stocks must eventually trickle down to other global markets.

“The whole global economy since 2008 has been driven forward by this massive investment and construction and borrowing spree in China,” said Stockman.

“The point that I’m making is that it’s over.”

Stockman also said the artificially inflated bubbles created by the Federal Reserve have helped created this disaster scenario.

“I think what we are seeing is the beginning evidence that the central bank-driven credit economy is over and we are in a new era,” said Stockman.

“It’s a huge disaster waiting to happen.”

Other economic experts echo Stockman’s deflation warning.

Bill Gross, money manager at Janus Capital Group Inc., told Bloomberg Radio that the global economy is “dangerously close to deflationary growth.”

Once there is a “whiff of deflation, things tend to reverse and go badly,” Gross said Friday in a Bloomberg Radio interview with Tom Keene.
Gross pointed to how the CRB Commodity Index isn’t just at a cyclical low, but lower than in 2008 when Lehman Brothers Holdings Inc. went bankrupt.
Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Finance/StreetTalk/David-Stockman-Stocks-Disaster-CNBC/2015/08/07/id/669058/#ixzz3ie3Pulte

Way Out West:

EPA Contractor behind Gold King Mine spill in CO got $381 million from Taxpayers

by Michael Bastasch  August 12,2015

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The EPA may have been trying to hide the identity of the contracting company responsible for causing a major wastewater spill in southern Colorado, but the Wal Street Journal has revealed the company’s identity. Environmental Restoration (ER) LLC, a Missouri-based firm, was the “contractor whose work caused a mine spill in Colorado that released an estimated 3 million gallons of toxic sludge into the Animas river system”  the WSJ was told by a source familiar with the matter.  The paper also found government documents to corroborate what their source told them.

So far, the EPA has flatly refused to publically name the contracting company used to plug abandoned mines in southern Colorado despite numerous attempts by the Daily Caller News foundation and other media outlets to obtain the info.  It is unclear why the agency chose not to reveal the contractors name.

What is clear, however, is that ER has gotten $381 million in government contracts since October 2007, according to a WSJ review of data from USAspending.gov  About $364 million of that funding came from the EPA, but only $37 million was given to this Contractor for work they had done in CO.

To read the whole story:  http://dailycaller.com/2015/08/12/epa-contractor-behind-co-mine-spill-got-381-million-from-taxpayer/

SUPERFUND BLITZKREIG: 

Man writes letter to Silverton Standart Editor 2 weeks Prior to Spill outlining EPA dark purposes 

Yes, that letter to the editor about the EPA was published
From Silverton Standard, the place where you can write!

Posted on August 12 2015, 1:17pm by Mark Esper in Local News category

Yes this letter was published in the July 30, 2015 edition of the Silverton Standard.

-Mark Esper, editor and publisher.

Climate change expert sentenced to 32 months for fraud, says lying was a ‘rush’

EPA’s highest-paid employee and a leading expert on climate change was sentenced to 32 months in federal prison Wednesday for lying to his bosses and saying he was a CIA spy working in Pakistan so he could avoid doing his real job.

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John C. Beale’s crimes were “inexplicable” and “unbelievably egregious,” said Judge Ellen Huvelle in imposing the sentence in a Washington. D.C. federal court. Beale has also agreed to pay $1.3 million in restitution and forfeiture to the government.

Beale said he was ashamed of his lies about working for the CIA, a ruse that, according to court records, began in 2000 and continued until early this year.

“Why did I do this? Greed – simple greed – and I’m ashamed of that greed,” Beale told the court. He also said it was possible that he got a “rush” and a “sense of excitement” by telling people he was worked for the CIA. “It was something like an addiction,” he said.

Beale pled guilty in September to bilking the government out of nearly $1 million in salary and other benefits over a decade. He perpetrated his fraud largely by failing to show up at the EPA for months at a time, including one 18-month stretch starting in June 2011 when he did “absolutely no work,” as his lawyer acknowledged in a sentencing memo filed last week.

E.P.A. fraud discovery leaves government investigator “stunned”2:30

 China is hiding 9,500 tons of Gold

Dominic Frisby, Moneyweek  August 7,2015

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How much gold does China have?

The question won’t go away, because the answer is vital.

The answer could define, in no uncertain terms, how important or irrelevant gold is in the modern world.

Is gold obsolete, or does it still have a significant role to play?Today we consider that question, and look once again at China’s gold…

Gold – useless shiny pet rock or the very essence of money?

Some people argue that gold is just an inert, useless metal, good for little more than jewellery. Its role in finance is as obsolete as the horse is in transport, or the telegraph in communication. The world has moved on. As Ben Bernanke famously said, it is just a ‘tradition’.

At the other extreme are those who argue that gold is essential. It is nature’s money, it is honest money, it is sound money. The serial abuses perpetrated by commercial banks, central banks and governments mean the resumption of its historical role is inevitable. It is just a matter of time.

I get both arguments, but it’s the price of gold, I suppose, that tells us which argument is winning.

When gold was over $1,800 an ounce and rising, with the first Greek crisis, quantitative easing everywhere and a global financial crisis barely two years behind us, the ‘gold-is-money’ arguments looked strong.

Now gold is at $1,100 and falling, stock markets are strong, economies have recovered and the Greek crisis is – well, still there – the ‘gold-is-history’ argument has the upper hand.

So what China – this enormous, emerging superpower – thinks and does becomes immensely important to the argument.

Some argue that the fact China has turned itself into the world’s largest gold producer, as well as vying with India to be the world’s largest importer, is telling. It shows that China ‘understands’ gold, that it thinks gold is important, perhaps even that gold is money. Some go on to argue that China doesn’t like fiat dollars or euros, and that it wants the yuan to be the global reserve currency, backed, at least in part, by gold.

Home Alone!

Others say there are a simply lot of Chinese people and many of them like jewellery. Any official purchases are nothing more than a gentle balancing of the books.

If China came out and announced 8,000 tonnes of official gold holdings – enough to rival those of the US – the statement would be both aggressive and breathtaking. This new and mighty nation, an economic and military rival to the United States of America, now has a hoard to match that in Fort Knox. China clearly sees that gold is a strategic monetary asset!

But it didn’t. The announcement, when it came a few weeks back, that it holds a disappointing 1,658 tonnes was, if anything, designed to rock the boat as little as possible.

It is a significant advance on the 1,054 tonnes announced in 2009. But it is not enough to make anyone realistically think it has designs for a new gold-backed reserve currency.

In fact, given that over 10,000 tonnes have either been produced in or imported to China over the same period, a 604-tonne rise in official reserves is a major disappointment. In fact, it’s such a disappointment that many people are now saying the real number is higher.

So how much gold does China have? And where did the other 9,500 tonnes go?

Where is all of China’s gold hiding?

Bron Suchecki of the Perth Mint has done his homework on this subject here. Bron’s background and his tendency towards understatement in a gold world full of hyperbole mean his judgment on this is as sound as anyone’s.

He makes the point that China has encouraged private accumulation. Studying gold flows, he argues that China is aiming for private citizens to accumulate 55% of flow – with the remaining 45% going to commercial banks and the central bank (the People’s Bank of China – PBOC).

His conclusion is that China has understated its official gold – but not by as much as many people were hoping. He arrives at the overall figure of 2,400 tonnes.

Commercial banks are holding another 2,060 tonnes, while there are 6,490 tonnes in the hands of private buyers – for a grand total of 10,950 tonnes in China.

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This tallies with analyst Koos Jansen’s findings, although Jansen argues there are closer to 14,000 tonnes of gold in China (private and official). This figure is based around what happened to privately-owned jewellery after the revolution – whether it stayed private or was taken by the government and sold to import other goods. This is a disputed subject, which we won’t go into here.

To put those numbers in some kind of visual context, imagine a cube with each side measuring just over a foot (32cm). Each face of the cube would be a bit larger than a 12-inch record sleeve. That’s how big a tonne of gold is.

The United States, the richest country in the world, has 8,133 of the cubes (making up 74% of its foreign exchange reserves). It’s quite amazing that so much wealth can be compressed into such a small size. Germany has 3,383. Here in the UK we have just 310 of these boxes. Oops. China produces more than that every year.

It’s estimated that the total amount of gold mined throughout all of history, most of which still exists, amounts to about 170,000 tonnes, or just over.

Maybe China is simply looking for insurance too

So all in all, that 2,400-tonne China figure, if we can accept it, is frustrating. It doesn’t resolve the argument that is the premise for today’s Money Morning. It suggests that China is less ambivalent about gold than the rest of the world – it clearly likes it – but it doesn’t make a clear statement about gold’s role in the modern world (at least as the Chinese see it), nor about Chinese gold-backed-reserve-currency ambition or a plan to collapse the dollar.

If it does have such an ambition – and I have to say I find the idea unlikely, for various reasons – there are no immediate plans to implement it. We could be waiting rather a long time for that one.

You could, however, make the argument that Chinese commercial banks and official gold should be counted together, given that most commercial banks there are state-owned. In which case, you have a rather more sit-up-and-take-notice figure of 4,500 tonnes or thereabouts.

You could also note the total amount of gold held in China. Suchecki estimates around 11,000 tonnes, Jansen closer to 14,000. Nick Laird of Sharelynx has the figure closer to 15,000. Meanwhile, Laird estimates total US holdings (private and public) at 26,000-27,000 tonnes. At its current rate of accumulation, it won’t be long before China matches the US.

But perhaps what is most interesting is the enormous volume of gold that has been bought privately – some 6,500 tonnes – and that China has encouraged its citizens to do this.

Perhaps it is as unsure about fiat currency as the rest of us. It wants its citizens to own gold – just in case.

Read the original article on MoneyWeek. Copyright 2015. Follow MoneyWeek on Twitter.

Read more: http://uk.businessinsider.com/china-is-hiding-9500-tonnes-of-gold-2015-8#ixzz3ie0jeSXU

Read more: http://uk.businessinsider.com/china-is-hiding-9500-tonnes-of-gold-2015-8#ixzz3idyxsMQ7

Will China’s devaluation delay a US rate rise?

China’s surprise devaluation of its currency has hit global markets, with some investors fearing a new currency war as well as declining Chinese economic momentum, possibly even prompting the US Federal Reserve to delay “liftoff” in interest rates.

On Tuesday, the Chinese government devalued the yuan’s midpoint against the US dollar by 1.9 per cent, the most on record. This caused a sudden surge in US dollar buying, causing the Australian dollar to plummet from an intraday high of US74.36¢ to as low as US72.85¢ overnight. Neighbouring Asian currencies and global equity markets were also hit by the move.

The significance of China’s exchange rate policy move could not be overstated.

Diana Choyleva, Lombard Street Research

“The significance of China’s exchange rate policy move could not be overstated,” Lombard Street Research’s chief economist Diana Choyleva said.

Read Full Article
Read more at http://www.trunews.com/will-chinas-devaluation-delay-a-us-rate-rise/#yLkiWzqFW2WE8Spl.99

150 Days: Treasury Says Debt Has Been Frozen at $18,112,975,000,000

http://cnsnews.com/news/article/tere…18112975000000

The portion of the federal debt that is subject to a legal limit set by Congress closed Monday, August 10, at $18,112,975,000,000, according to the latest Daily Treasury Statement, which was published at 4:00 p.m. on Tuesday.

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That, according to the Treasury’s statements, makes 150 straight days the debt subject to the limit has been frozen at $18,112,975,000,000.

$18,112,975,000,000 is about $25 million below the current legal debt limit of $18,113,000,080,959.35.

On July 30, Treasury Secretary Jacob Lew sent a letter to the leaders of Congress informing them that he was extending a “debt issuance suspension period” through October 30.

In practice, that means that unless Congress enacts new legislation to increase the limit on the federal debt before then, the Treasury will continue for at least the next eleven weeks to issue Daily Treasury Statements that show the federal debt subject to the limit beginning and ending each day frozen just below that limit.

The Daily Treasury Statement for March 13 was the first to show the debt subject to the limit closing the day at $18,112,975,000,000. Every Daily Treasury Statement since then has reported the same thing: the debt closing the day at $18,112,975,000,000.

Every Daily Treasury Statement since Monday, March 16, has also reported the debt beginning and ending each day at $18,112,975,000,000.

Table III-C on the Daily Treasury Statement for August 10 says the debt began the month of August at $18,112,975,000,000, began the day of August 10 at $18,112,975,000,000, and closed the day of August 10 at $18,112,975,000,000.

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On March 13, Treasury Secretary Jacob Lew sent an initial letter to House Speaker John Boehner and other congressional leaders informing them that he was planning to declare a “debt issuance suspension period.”

“Beginning on Monday, March 16, the outstanding debt of the United States will be at the statutory limit,” Lew said in that letter. “In anticipation of reaching that date, Treasury has suspended until further notice the issue of State and Local Government Series securities, which count against the debt limit.”

On July 29, Lew sent another letter to the leaders of Congress informing them: “I expect to extend the debt issuance suspension period through October 30.”

Lew explained that he believed the Treasury would be able to continue using “extraordinary measures” to keep the debt from exceeding the limit through at least the end of October.

“The effective duration of the extraordinary measures is subject to considerable uncertainty due to a variety of factors, including the unpredictability of September tax receipts and the normal challenges of forecasting the payments and receipts of the U.S. government months into the future,” Lew told the congressional leaders.

“Given this unavoidable uncertainty, Treasury is not able to provide a specific estimate of how long the extraordinary measures will last,” Lew said. “Nonetheless, we believe that the measures will not be exhausted before late October, and it is likely that they will last for at least a brief additional period of time.”

The next day, July 30, Lew did in fact send a notice to the congressional leaders saying: “I have determined that a ‘debt issuance suspension,’ previously determined to last until July 30, 2015, will continue through October 30, 2015.”

In his March 13 letter, Lew explained some steps the Treasury would take during the debt issuance suspension period.

“Because Congress has not yet acted to raise the debt limit,” Lew said in that letter, “the Treasury Department will have to employ further extraordinary measures to continue to finance the government on a temporary basis. Therefore, beginning on March 16, I plan to declare a ‘debt issuance suspension period’ with respect to investment of the Civil Service Retirement and Disability Fund and also suspend the daily reinvestment of Treasury securities held by the Government Securities Investment Fund and the Federal Employees’ Retirement System Thrift Savings Plan.”

Lew informed Boehner that these same actions had been taken “during previous debt limit impasses.”

For example, as CNSNews.com reported, when Secretary Lew declared a debt issuance suspension period in 2013, the Treasury reported the debt subject to the limit was frozen at $16,699,396,000,000 for 150 days, running from mid-May to mid-October of that year.

The Treasury has also posted Frequently Asked Question sheets that explain the actions the Treasury takes during a “debt issuance suspension period” and their statutory basis. The Congressional Research Service has also explained it.

“Under current law, if the Secretary of the Treasury determines that the issuance of obligations of the United States may not be made without exceeding the debt limit, a ‘debt issuance suspension period’ may be determined,” the Congressional Research Service said in a report published on March 27. “This determination gives the Treasury the authority to suspend investments in the Civil Service Retirement and Disability Trust Fund, Postal Service Retiree Health Benefit Fund, and the Government Securities Investment Fund (G-Fund) of the Federal Thrift Savings Plan.

“In addition,” said CRS, “this gives Treasury the authority to prematurely redeem securities held by the Civil Service Retirement and Disability Trust Fund and Postal Service Retiree Health Benefit Fund.”

“The total federal debt consists of debt held by the public and intragovernmental debt,” the CRS said in another report published in 2011. “Debt owed to the public represents borrowing from entities other than the federal government, and includes borrowing from state and local governments, the Federal Reserve System, and foreign central banks, as well as private investors in the United States.

“Intragovernmental debt,” said CRS, “consists in debt owed by one part of the federal government to another, which are mostly held in trust funds.”

The net effect of the Treasury’s actions is that although the publicly held debt of the government continues to fluctuate–as the Treasury redeems maturing debt held by the public and issues new debt held by the public—the overall debt subject to the limit set by Congress closes each business day at $18,112,975,000,000.

Back on March 13, the debt held by the public was $13,083,880,000,000 and the intragovernmental debt was $5,068,578,000,000 according to the Daily Treasury Statement. By the close of business on August 10, also according to the Daily Treasury Statement, the debt held by the public had increased by $37,043,000,000 to $13,120,923,000,000, and the intragovernmental debt had decreased by $38,260,000,000 to $5,030,318,000,000.

But on every business day from March 13 through August 10 the Treasury reported that the federal debt subject to the legal limit set by Congress closed the day at $18,112,975,000,000.

Switzerland lifts sanctions against Iran

Reuters August 12, 2015

ZURICH (Reuters) – Neutral Switzerland will officially lift on Thursday sanctions against Iran that had been suspended since January 2014, the government announced on Wednesday, citing a deal last month between Tehran and six big powers to curb Iran’s nuclear program.

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“The Federal Council (government) wishes today’s steps to be seen as a sign of its support for the implementation of the nuclear agreement and its interest in deepening bilateral relations with Iran,” a statement said.

The deal that Iran struck with China, Russia, the United States, Germany, France and Britain aims to rein in Iran’s nuclear program in return for relief from U.N., EU and U.S. sanctions that were crippling the Islamic republic’s economy.

The Swiss sanctions had banned trade in precious metals with Iranian state bodies and set requirements to report trade in Iranian petrochemical products and the transport of Iranian crude oil and petroleum products.

Switzerland will also introduce a new exemption clause that lets Berne implement U.N. Security Council resolutions on Iran.

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The government said Switzerland wished to “promote a broad political and economic exchange with Iran” but would monitor implementation of the nuclear deal.

“Should implementation of the agreement fail, the Federal Council reserves the right to reintroduce the lifted measures,” it said.

(Reporting by Michael Shields; editing by John Stonestreet and Digby Lidstone

China’s surprise currency devaluation sends commodities plunging:” Another sign of economic weakness”

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The last time China imposed extreme economic stimulus measures they drove huge gains in commodity prices.

But this time, they’re just making things worse.

Commodities plunged to new multi-year lows on Tuesday after China’s surprise move to de-value its currency by nearly two per cent. Oil and copper both dropped to their lowest levels since 2009. Zinc fell as much as four per cent, and nickel and aluminum were down as well.

The drop in commodities underscores the fact that investors have deep-seated concerns about China’s shrinking growth, and the government’s ability to stem the slowdown. China is the world’s primary driver of commodity demand, and its recent equity market meltdown and disappointing economic data have been rattling commodity markets for weeks.

This is a real contrast to what happened after the 2008 financial meltdown.

Read Full Article
Read more at http://www.trunews.com/chinas-surprise-currency-devaluation-sends-commodities-plunging-another-sign-of-economic-weakness/#TXyQwyAvdCsTpcYb.99

The last time China imposed extreme economic stimulus measures they drove huge gains in commodity prices.

But this time, they’re just making things worse.

Commodities plunged to new multi-year lows on Tuesday after China’s surprise move to de-value its currency by nearly two per cent. Oil and copper both dropped to their lowest levels since 2009. Zinc fell as much as four per cent, and nickel and aluminum were down as well.

The drop in commodities underscores the fact that investors have deep-seated concerns about China’s shrinking growth, and the government’s ability to stem the slowdown. China is the world’s primary driver of commodity demand, and its recent equity market meltdown and disappointing economic data have been rattling commodity markets for weeks.

This is a real contrast to what happened after the 2008 financial meltdown.

Read Full Article
Read more at http://www.trunews.com/chinas-surprise-currency-devaluation-sends-commodities-plunging-another-sign-of-economic-weakness/#TXyQwyAvdCsTpcYb.99

 

Foreign banks have $1 trillion parked at the Fed

By on August 11, 2015
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The largest U.S. banks and subsidiaries of foreign banks account for most of the excess reserves parked at the U.S. central bank, according to a new study released Tuesday by the Cleveland Fed.

After three rounds of Fed asset purchases, these reserves have grown dramatically, to $2.5 trillion from $1.9 billion seven years ago. Foreign banks, especially European firms, alone hold just under $1 trillion. Keeping excess cash at the Fed offers a much less risky return.

Before the financial crisis, foreign banks didn’t store any of their excess cash at the Federal Reserve the study found.

Officials have fretted have worried about the “optics” of their exit plan, which calls for paying more interest on this reserves as a main way to raise short-term interest rates.

Read Full Article

Read more at http://www.trunews.com/foreign-banks-have-1-trillion-parked-at-the-fed/#FohvYTUXQRHcqHCb.99

That’s all for this time!  Keep Looking up!  Luke 21:28

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