Gold has spent most of June grinding lower on balance, damaging sentiment and vexing traders. Usual selling leading into the Fed’s latest rate hike contributed, but the summer doldrums are also in play. Gold has typically suffered a seasonal lull this time of year, on waning investment demand as vacations divert attention from markets. But these summer doldrums offer the best seasonal buying opportunities of the year.
This doldrums term is very apt for gold’s summer predicament. It describes a zone in the world’s oceans surrounding the equator. There hot air is constantly rising, creating long-lived low-pressure areas. They are often calm, with little or no prevailing winds. History is full of accounts of sailing ships getting trapped in this zone for days or even weeks, unable to make any headway. The doldrums were murder on ships’ morale.
Crews had no idea when the winds would pick up again, while they continued burning through their precious stores of food and drink. Without moving air, the stifling heat and humidity were suffocating on these ships long before air conditioning. Misery and boredom were extreme, leading to fights breaking out and occasional mutinies. Being trapped in the doldrums was viewed with dread, it was a very trying experience.
Gold investors can somewhat relate. Like clockwork nearly every summer, gold starts drifting listlessly sideways. It often can’t make significant progress no matter what the trends looked like heading into June, July, and August. As the days and weeks slowly pass, sentiment deteriorates markedly. Patience is gradually exhausted, supplanted with deep frustration. Plenty of traders capitulate, abandoning ship.
This is how desperate the Italian Banking Crisis has become.
When things get serious in the EU, laws get bent and loopholes get exploited. That is what is happening right now in Italy, where the banking crisis has reached tipping point. The ECB, together with the Italian government, have just this weekend to resolve Banca Popolare di Vicenza and Veneto Banca, two zombie banks that the ECB, on Friday night, ordered to be liquidated.
Unlike Monte dei Pachi di Siena, they will not be bailed out primarily with public funds. Senior bondholders and depositors will be protected while shareholders and subordinate bondholders will lose their shirts. However, as the German daily Welt points out, subordinate bondholders at Monte dei Pachi di Siena had billions of euros at stake, much of it owned by its own retail customers who’d been sold these bonds instead of savings products such as CDs. So for political reasons, they were bailed out.
Junior bonds play a smaller role at the two Veneto-based banks. According to the Welt, the two banks combined have €1.33 billion (at face value) in junior bonds outstanding. They last traded between 1 cent and 3 cents on the euro. So worthless. Only about €100 million were sold to their own customers, not enough to cause a political ruckus in Italy. So they will be crushed.
A year on from the UK’s Brexit referendum, Prime Minister Theresa May is set to visit Brussels today and outline her government’s negotiating position on the future rights of EU citizens living in the UK.
The FBI has apparently declared that the Scalise shooting (at the baseball park) was spontaneous and not premeditated.
This, despite the fact that they found multiple pictures of the ball field in his possession.
They have also declared that he had no particular target in mind.
This, despite the fact that he had a list of Congresspeople on him at the time he committed the offense.
They have further declared that they have no particular motive either.
This, despite the reported fact that he asked one of the people there whether it was Republicans or Democrats practicing, and only after hearing it was Republicans did he go retrieve his guns and start shooting.
Oh, and this “random”, “no known motive” nutbag (at least the last word is accurate) traveled the better part of 1,000 miles in a van from Illinois to Washington DC, rented a storage locker in which he deposited a nice big cache of rounds for his weapons, and then did all of the above.
The ECB had given the banks time to present capital plans, but the banks had been unable to offer credible solutions going forward.
Consequently, the ECB deemed that both banks were failing or likely to fail and duly informed the Single Resolution Board (SRB), which concluded that the conditions for a resolution action in relation to the two banks had not been met. The banks will be wound up under Italian insolvency procedures.
There’s currently a push in the halls of Washington D.C., to establish a new branch of the military by 2019, one whose focus would be operations among the stars. Proposed legislation by House representatives would create a “Space Corps” that would serve “as a separate military service within the Department of the Air Force.”
It would be the first branch added to the military since 1947 when the Air Force was officially established.
On Tuesday, the top two lawmakers of the Strategic Forces Subcommittee, Representatives Mike Rogers and Jim Cooper, added the legislation to the 2018 National Defense Authorization Act (NDAA). The subcommittee oversees military space operations and works within the umbrella of the House Armed Services Committee.
“There is bipartisan acknowledgement that the strategic advantages we derive from our national security space systems are eroding,” Rogers and Cooper said in a joint statement.
“We are convinced that the Department of Defense is unable to take the measures necessary to address these challenges effectively and decisively, or even recognize the nature and scale of its problems.”
“McDonald’s has repeatedly said that adding kiosks won’t result in mass layoffs, but will instead move some cashiers to other parts of the restaurant where it’s adding new jobs, such as table service. The burger chain reiterated that position again on Friday.”
Argentus Maximus writes: Newmont is due to make a cycle low between 2015 and 2017. It might have already done so, but if it hasn’t, there might be a buying opportunity during the latter part of this year, say the coming 12-18 months. Do your own due diligence!
On June 21 the editorial board of the Washington Post, long a propaganda instrument believed to be in cahoots with the CIA and the deep state, called for more sanctions and more pressure on Russia.
One second’s thought is sufficient to realize how bad this advice is. The orchestrated demonization of Russia and its president began in the late summer of 2013 when the British Parliament and Russian diplomacy blocked the neoconned Obama regime’s planned invasion of Syria. An example had to be made of Russia before other countries began standing up to Washington. While the Russians were focused on the Sochi Olympic Games, Washington staged a coup in Ukraine, replacing the elected democratic government with a gang of Banderite neo-nazi thugs whose forebears fought for Hitler in World War II. Washington claimed it had brought democracy to Ukraine by putting neo-nazi thugs in control of the government.
Washington’s thugs immediately began violent attacks on the Russian population in Ukraine. Soviet war memorials were destroyed. The Russian language was declared banned from official use. Instantly, separatist movements began in the Russian parts of Ukraine that had been administratively attached to Ukraine by Soviet leaders. Crimea, a Russian province since the 1700s, voted overwhelmingly to seperate from Ukraine and requested to be reunited with Russia. The same occurred in the Luhansk and Donetsk regions.
These independent actions were misrepresented by Washington and the presstitutes who whore for Washington as a “Russian invasion.” Despite all facts to the contrary, this misrepresentation continues today. In US foreign policy, facts are not part of the analysis.