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Chris visits with Mike “Mish” Shedlock

Big Al
July 5, 2016

Chris is joined by his friend — and well-known blogger and Investment Adviser Rep. for Sitka Pacific — Mike “Mish” Shedlock as we near the market close.  They talk about some interesting goings-on in silver, and then tackle the disaster that is the European financial (and political) system and how it continues to support Treasuries and precious metals.

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Discussion
87 Comments
    CFS
    Jul 05, 2016 05:00 PM

    What drop in open interest in silver?

    Three major funds out of property in UK.

      Jul 05, 2016 05:07 PM

      CFS. We are not going to go another Three months without a MAJOR financial calamity. The system is breaking down….I hope all you people hold physical G&S.

        CFS
        Jul 05, 2016 05:26 PM

        Irish, I believe underestimate the football ability of Government. They will kick the can down the road longer than anyone believes possible.
        Of course it will destroy most of the world monetary systems.
        Will gold and silver save some people? Possibly. Possibly not. Never forget the power of a mortally-wounded system to strike out in its death throws.

      Jul 05, 2016 05:10 PM

      CFS…They are going to have to cough up a lot more than $150 billion to hold this house together…..They are f£$%ked, & they know it.

        CFS
        Jul 05, 2016 05:39 PM

        Wait for a ban in Italy on short selling all bank stocks.

          Jul 05, 2016 05:43 PM

          CFS…I agree..thats the next move, which moves on to , a world wide ban on short selling any bank stocks.

            Jul 05, 2016 05:46 PM

            I just put my Green Slippers on…………..
            OH OH The banks are dead…
            The wicked Banks are dead…

          Jul 05, 2016 05:46 PM

          A little late for that…

            Jul 05, 2016 05:57 PM

            Temple…Better late , than never….X

            CFS
            Jul 05, 2016 05:58 PM

            More worrying is the power of a country to change the rules.
            e.g. All citizens will from day Z only be allowed to make sales and purchases by Government issued cards.

            You have X days to apply at your local social security/license branch to obtain a card.
            Employers have Y days to register to be able to pay employees via these cards.
            Etc.

    Jul 05, 2016 05:09 PM

    Dang, Mish Shedlock. And you got him on vacation, no less. I would like to hear more interviews with him.

    And sorry to change subjects but…


    FBI director says charges aren’t ‘appropriate’ in Clinton email case

    http://www.marketwatch.com/story/fbi-director-says-charges-arent-appropriate-in-clinton-email-case-2016-07-05

    I told you people way back when there was no way, no how Shillary would be indicted. I told you Comey would do as he was told and make the Shillary issues go away. I told you the DemoNRats hooked their wagon to Shillary and there was no going back as the special interests have funneled hundreds of millions of dollars to her, her husband, her daughter and their foundation. I was right.

    I bet Clown Comey was made an offer he couldn’t refuse. Just like Roberts on the Supreme Court when he ruled on Obammycare.

      Jul 05, 2016 05:13 PM

      EBOLAN…Yes you were correct, & the rest of us on this site knew it too.

      Jul 05, 2016 05:17 PM

      Comey may have met secretly with Bill on some tarmac and been offered a big Swiss bank account with some of the money Marc Rich paid Bill for his pardon.

        Jul 05, 2016 05:58 PM

        Comey was the appointed special official to investigate the Bill Clinton pardons at the end of his presidency. Surprise, he discovered their was no official wrongdoing with many of the obvious financial shanagians behind a number of them including the Marc Rich pardon. No one has made that connection yet.

          Jul 05, 2016 05:21 PM

          Didn’t know that about Crony…er…Clowney…er Comey…dang iPad!

          People should be screaming bloody murder about the Clowney announcement. Instead the vast majority of Amerocons most likely have know idea what he was supposed to be investigating.

          Jul 05, 2016 05:23 PM

          A bunch of Republican acquaintances of mine were telling me there would be mass resignations in the FBI if Clowney or Lynch did this. I told them that if I were them I would not hold me breath for that.

          Jul 05, 2016 05:30 PM

          You would think people would be screaming bloody murder about Crummy…er…Comey’s announcement. Instead, so far the people I’ve talked to just shrug their shoulders…what a pity.

          Jul 05, 2016 05:45 PM

          Dang, I’d forgotten that.

    Jul 05, 2016 05:15 PM

    Long live the Empire….Until WWW111…Then it dies, along with the rest of us.

    Jul 05, 2016 05:30 PM

    FOR SALE LAPTOP…VERY GOOD CONDITION…ONE VERY CAREFUL LADY !!!!OWNER.
    BEST OFFER SECURES. HRC WASHINGTON….NO LONGER NEEDED AS I HAVE ACCESS TO THE LARGEST NUCLEAR COMPUTOR ON THE PLANET.

    Jul 05, 2016 05:55 PM

    WTF

    LOOK at today’s volume in gold:

    http://schrts.co/WuLy1t

      Jul 05, 2016 05:00 PM

      Fran…Every day is a WTF day on the world stage…………X

      Jul 05, 2016 05:02 PM

      Pump it up today, run all the stops, collapse it tomorrow morning.

        Jul 05, 2016 05:14 PM

        No, those price interventions are gone once lawsuits finding price fixing went in favour of defendants, starting with silver price fixing. Then you also have the collapse of the Pound, interest rate declines, The Fed holding back on interest rate normalization, declines in Yuan FX, Renewed QE in the UK, etc. You name it, it’s all being thrown in gold’s lap.

      Jul 05, 2016 05:30 PM

      Wow. Thanks FranSix for pointing out the volume spike.

        Jul 05, 2016 05:46 PM

        Click on it again. Just as I’ve seen many times, stockcharts now shows a much less impressive volume.

          Jul 06, 2016 06:23 AM

          Weird data reversal. Thanks for making me take another look Matthew.

            Jul 06, 2016 06:29 AM

            On the bright side, and more importantly, silver’s impressive volume was for real:

            http://schrts.co/3V0qmd

            Jul 06, 2016 06:57 AM

            Yes, concerning Silver, it was likely the short positions getting squeezed, but it has largely reversed back down. Still it was a nice short term pricing peak.

            Jul 06, 2016 06:20 AM

            There is no “but” in my opinion. The implications of that volume and action remain bullishly in effect and the bears and skeptical bulls are finally starting to figure out that this is a bull market. It’s about time.

            http://schrts.co/DCkTLK

            Jul 06, 2016 06:49 PM

            Agreed. I just believe it put in a short-term reversal candle is all. For the mid to long term, Silver has much higher to go.

      CFS
      Jul 05, 2016 05:32 PM

      FranSix, and that volume only represents a fraction of reality. I.e. America, cash.
      Not futures, not world markets. (Don’t forget the COMEX is now no longer the biggest platform!)

      Jul 05, 2016 05:09 PM

      Huge volume increase. Can it caarry on or it will begin to exhaust itself in the following days as it did back in April just before we got another pull-back? Time will tell.

    Jul 05, 2016 05:48 PM

    I think everyone here will recall a chart that was being circulated a couple years back of all the financial interconnections between Europe’s banks both small and large. I cannot locate it anymore (Zerohedge probably) but will simply relate that the point of the chart was to prove that all the major banks there were systemically important because any single one could cause an avalanche of downstream problems should it fail. In a nutshell, there is a serious risk that ANY major bank collapsing would result in a real world example of the Domino Effect with a potentially paralyzing impact on all of Europe’s shaky financial system. So, getting right to the point I suppose we should now wonder out loud if the crisis among Italy’s big banks has the potential to create a disturbance that might eventually push Deutche Bank over the edge. This is obviously more real than the Butterfly Effect that China’s Premier was warning about last week. The fear over there is palpable and about as far from theoretical as we can get.

      Jul 05, 2016 05:05 PM

      Simply put…the ECB will have to come through even if it means breaking the rules. The Italian banks must be bailed out (or sorted out) before they become systemically destructive to the rest of the continents most at-risk banks. And what that means is that the ECB balance sheet could explode higher as a result with all the usual repercussions that normally follow.

      Jul 05, 2016 05:08 PM

      BIRD…Dozens of banks have already failed the reason we have not heard about it is because the central banks have stepped in & bailed them out with monopoly money….Its like a dripping tap, you don’t make a big deal of it, but if your house floods somebody comes to the rescue.

      Jul 05, 2016 05:14 PM

      These banks are more incestuously intertwined than teenagers in the Ozarks

        Jul 05, 2016 05:36 PM

        tragically funny analogy 🙂

        Jul 05, 2016 05:38 PM

        That’s a fact Chris. The masters of the universe who put the modern European financial system together after the Euro was introduced deliberately created such intricate inter-bank ties that nobody could successfully get out alive once they had joined. You were either in for the duration once you signed on or you would be road kill if it fell apart. So all for one and one for all. Either the Eurozone and its rule bound financial system succeeds or everyone goes down together with all hands lost. Bloody dogs breakfast of one way tickets, burning of escape bridges mixed together with a joint suicide pact. Mutually Assured Destruction. I would hate to be a banker over there these days. There are just too many moving parts in that machinery and every single one of them is an absolutely critical component that CANNOT be allowed to fail at any cost. How can they function like that?

          Jul 05, 2016 05:47 PM

          Well stated, Birdman.

          Jul 05, 2016 05:48 PM

          It’s so well said, in fact, I’m going to borrow that (with proper credit, of course!)

            Jul 05, 2016 05:52 PM

            By all means Chris. She’s all yours.

    CFS
    Jul 05, 2016 05:02 PM

    The system is teetering on the edge of a cliff everywhere.

      Jul 05, 2016 05:07 PM

      Kind of feels that way doesn’t it.

        Jul 05, 2016 05:12 PM

        Bird…Not feels….But is.

          Jul 05, 2016 05:23 PM

          This gets crazier by the day.

            Jul 05, 2016 05:41 PM

            It sure does Jerry. We are accelerating straight into a solid brick wall.

    Jul 05, 2016 05:33 PM

    Well obviously the US election’s been fixed, weird trying to make investment decisions based on how to make money on a corrupt system

      Jul 05, 2016 05:44 PM

      Almost everyone was wrong about Brexit. Maybe we are wrong about Hillary winning too.

        Jul 05, 2016 05:47 PM

        Who said Hillary is going to win, only losers would believe that. DT

    Jul 05, 2016 05:58 PM

    Hi Birman, maybe it’ll play out in that form you might well be right. And I’m now 52 so probably more annoying, but how can Hillary not be charged with anything, it’s a complete joke: FBI recommends no charges against Hillary Clinton over emails, F**k me in real life you get fired

      CFS
      Jul 05, 2016 05:42 PM

      No, she had multiple infringements of law which specifically include fines and up to ten years in jail. If you read the exact words of Comey himself, he implies her guilt by moving the actual goalpost in law from “gross negligence” to “intent”.
      There is no “intent” requirement IN the law, merely the fact of putting state department secret data on her private server IS PROOF of guilt, under the law.

    Jul 05, 2016 05:20 PM

    I wouldn’t sweat the bad banks much. There are many solid banks in the US, Europe and around the globe. The ones that are in trouble are the ones that should be in trouble, based on their derivative exposure. They never thought the chickens would actually come home to roost. Downsizing the most corrupt banks will be great for the markets.

    CFS
    Jul 05, 2016 05:11 PM

    Chartster, is ignorance bliss?

      Jul 05, 2016 05:19 PM

      I’m told it is, CFS.
      Answer this:
      What is the compliance ruling that the banks have pass?
      What is making the yeild on country bonds go down?

      You won’t find the answers on this site. And you don’t know the answers, do you?!

      Yes, ignorance is bliss, CFS..

        Jul 05, 2016 05:20 PM

        * banks have to pass

        CFS
        Jul 05, 2016 05:12 PM

        Are you referring to FATCA?

        And country bonds are going down because of central banks creating money, combined with movement of money out of stocks to “safety”.

          Jul 05, 2016 05:16 PM

          Nope

            Jul 05, 2016 05:54 PM

            There is a compliance ruling that has set some banks apart from other banks. The “other” banks may , or may not be who you think. What is “that” ruling, CFS? It will answer some questions you might have.
            BTW, you are way off on the bond thing.

            I will tell ya, if you’re right. ( owe ya that )

    Jul 05, 2016 05:33 PM

    Gold looking good after hours.

    CFS
    Jul 05, 2016 05:46 PM

    Gold

    Price ,Support Pivot Point Resistance
    1,363.21 1,331.27 1,350.47 1,369.67

    CFS
    Jul 05, 2016 05:07 PM

    The Chinese are buying. The Chinese are buying.

      Jul 05, 2016 05:35 PM

      Is that anything like……. the British are coming,the British are coming..

    Jul 05, 2016 05:31 PM

    Hot news…..usawatchdog special. At midnight Greg with Greg Mannorino .

    CFS
    Jul 05, 2016 05:50 PM
    CFS
    Jul 05, 2016 05:07 PM

    Silver

    Price Support Pivot Point Resistance
    20.2620 19.0387 19.9637 20.8887

      Jul 05, 2016 05:00 PM

      Best part of the article.
      To use the metaphor, our monetary Humpty Dumpty is heading for a great fall, and all the Imperial City’s potentates and poobahs will not be able to put it together again.

      And that would be a very good thing.

        Jul 06, 2016 06:10 AM

        I think it would be a GREAT thing…but am not holding my breath.

    Jul 05, 2016 05:43 PM

    Elliott Wave Analysis has already taken all of this into consideration. There are no surprises.

      Jul 05, 2016 05:06 PM

      EW is great……but its not THAT great!

    CFS
    Jul 06, 2016 06:12 AM

    Was Comey signaling a fix was in, when he described Hillary’s action was “extremely careless” when an indictment requires, according to statute, for “gross negligence”. ?

    CFS
    Jul 06, 2016 06:56 AM

    I was referring to the language of 18 USC 793, which Hillary clearly violated multiple times.

    CFS
    Jul 06, 2016 06:03 AM

    Specifically, for those not wishing to bother to look up the statute:

    (f) Whoever, being entrusted with or having lawful possession or control of any document, writing, code book, signal book, sketch, photograph, photographic negative, blueprint, plan, map, model, instrument, appliance, note, or information, relating to the national defense, (1) through gross negligence permits the same to be removed from its proper place of custody or delivered to anyone in violation of his trust, or to be lost, stolen, abstracted, or destroyed, or (2) having knowledge that the same has been illegally removed from its proper place of custody or delivered to anyone in violation of its trust, or lost, or stolen, abstracted, or destroyed, and fails to make prompt report of such loss, theft, abstraction, or destruction to his superior officer—
    Shall be fined under this title or imprisoned not more than ten years, or both.

      Jul 06, 2016 06:20 AM

      That is just for the little people…..

        Jul 06, 2016 06:21 AM

        Buckle up,for the crashup

          Jul 06, 2016 06:24 AM

          Martin Armstrong,out with news,…which is not news,…only 10% get it.

      Jul 06, 2016 06:34 AM

      Thanks for the post. If Putin ever shows any emails then she’s back in hot water. Seems to me they suspect hacking but can’t prove it yet so what else could the FBI do? JMO

    Jul 06, 2016 06:13 AM

    Constantine Commences Drill Program at
    Palmer Copper-Zinc-Silver-Gold Project, Southeast Alaska

    http://www.constantinemetals.com/_resources/nr/nr_2016_07_06.pdf

    Jul 06, 2016 06:12 AM

    Calico Receives Final Court Approval of Business Combination With Paramount

    (Marketwired – July 5, 2016) – Calico Resources Corp. (TSX VENTURE:CKB) is pleased to announce that it has received final approval of the British Columbia Supreme Court for its proposed business combination with Paramount Gold Nevada Corp., to be completed by way of plan of arrangement. Calico currently anticipates the closing of the Arrangement to occur on or about July 7, 2016, subject to the satisfaction or waiver of all conditions precedent.

    Under the terms of the Arrangement, holders of Calico Shares will be entitled to receive 0.07 of a share of common stock of Paramount in exchange for each Calico Share held…..”

    http://www.marketwired.com/press-release/calico-receives-final-court-approval-of-business-combination-with-paramount-tsx-venture-ckb-2139954.htm