Tuesday, July 7, 2020

Keiser Report | Turning junk into $$ | E1541

from RT:

In the second half, Max continues his interview with Raoul Pal of Global Macro Investor and Real Vision Group. In this segment, they discuss sophisticated investors’ packaging risk and dumping it into pension funds.

CHART OF THE WEEK: Primary Silver Miners REAL COST Higher Than Published All-In-Sustaining Cost

by Steve St. Angelo, SRSRocco Report:

The chart of the week shows that some of the leading primary silver miners total REAL COSTS are higher than their published All-In Sustaining Cost.  My analysis suggests that the companies’ All-In Sustaining Costs (AISC), are not really “All-In.”  So, I quickly did my calculations based on these companies’ adjusted earnings.  If I used their net income, their estimated Breakeven would be much higher.

In the chart below, the four primary silver mining companies (if we can still call some of them that) posted their AISC for Q1 2020.  The biggest JOKE of them all is Hecla, which reported a low $11.06 All-In Sustaining Cost for silver.  Well, that’s surprising when Hecla suffered a $17 million net income loss for the period.  So, how could Hecla be losing money if its All-In Sustaining Cost was $11.06 when they received $16.94 per ounce for their silver during Q1 2020?

For the Rich to Keep Getting Richer, We Have to Sacrifice Everything Else

by Charles Hugh Smith, Of Two Minds:

They’re hoping the endless circuses and trails of bread crumbs will forever distract us from their plunder and the inequalities built into America’s financial system..

The primary story of the past 20 years is the already-rich have gotten much richer, with destabilizing economic, social and political consequences. The Federal Reserve and its army of academic / think-tank / financier apologists, lackeys, toadies, apparatchiks and sycophants have several rather thin excuses to explain this away, including:

1. Gee, wealth/income inequality isn’t quite as bad as everyone claims. (Actually, it’s worse, but never mind unwelcome reality. Let us prove yet again how statistics can always be gamed.)

The Fed’s Grand Bargain Has Finally Imploded

by Charles Hugh Smith, Of Two Minds:

The Fed has backed itself not into a corner but to the edge of a precipice.

Though the Federal Reserve never stated its Grand Bargain explicitly, their actions have spoken louder than their predictably self-serving, obfuscatory public pronouncements. Here’s the Grand Bargain they offered institutional investors and speculators alike:

We’re taking away your low-risk, high-yield investments by slashing interest rates to near-zero, but we’re giving you endless asset bubbles as a new way to notch reliable gains. This trade-off has worked for 20 years as the Fed hyper-inflated one asset bubble after another until they finally inflated everything to precarious extremes: The Everything Bubble of 2019 that started unraveling in September 2019, long before the pandemic.

It’s Not a Recession—It’s a Government-Imposed Shutdown of the Private Sector

from Silver Doctors:

We are about to enter a production slowdown, a collapse really, not because businesses miscalculated their investments, but because government intervened…

by Hunter Hastings via Mises Wire

Economists and Wall Street analysts are using the word recession to describe the looming plunge in output in the US economy. We’ll just make the point early that economists, exhibiting the typical emptiness of their failed science, can’t even agree on the definition of recession.

Undeterred by lacking a definition, the geniuses at Goldman Sachs and elsewhere on Wall Street are unrestrained in predicting the imminent arrival of the condition they can’t describe.

This Week’s Oil Crash Is a Warning to Speculators in Futures Markets

by Mike Gleason, Money Metals:

Hello again, and welcome to another edition of the Weekly Market Wrap Podcast, I’m Mike Gleason.

Well, just when you thought you’d seen it all in markets, this week brought something that was previously assumed by many to be impossible: a negative price for a physical commodity.

More on that in a bit. But first, let’s review this week’s market action in precious metals, which have been posting some positive gains since bottoming last month.