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Saturday, April 18, 2015

Weekend news


Here's some weekend reading:


MSNBC - GOP passes a $269 billion tax cut exclusively for millionaires and billionaires. The Republicans really are the party of the kleptocratic elite, and now they aren't even trying to hide it anymore. A more enlightened nation would hang every last one of the bastards.


Macro Musings - it takes a regime shit to raise an economy. An argument for combatting ZLB stagnation with a nominal GDP target, instead of a 2% inflation target.


Reuters - India worries gains may be lost as trade deficit widens. Everyone thinks Narendra is so great, but what exactly has he done so far to help India produce even one thing that the rest of the world actually wants to buy from them? If he wants to double exports, he's going to have to find something in his country worth selling, and they can't even grow their own fucking onions.


Mining.com - pension funds join clamour for Barrick board extermination. The strange thing here is that pension funds, including the Ontario Teachers, have put even one red fucking cent into Barrick, or into any other gold miner. How's your investment return, guys? Are you even outperforming SPY?


Mining.com - which way will PMs break? Jojo's not sure, and it takes him 552 words to say that. Hah! I find your lack of faith disturbing, Jojo! The ability to do TA is insignificant next to the power of the force! Dude seriously, PMS go up in the spring when the Indian jewellers start buying. There's your answer. Now gimme my consultancy fee.


Mining.com - How does Miranda Gold still get press? Damn, again with Ken Cunningham getting press for his $7M market cap company! I'm sorry dude, but whenever I think of "Miranda", I think of the scene from Serenity where River Tam gets the post-hypnotic assassination trigger signal from the Japanese TV commercial and goes:



And sure it's always fun to watch Adam Baldwin get elbowed square in the nuts.


Friday, April 17, 2015

Regarding Flin Flon


Here's an explanation of the origin of the name Flin Flon:



Because for six months of the year, Canadians have nothing better to do than film short documentary vignettes.

For example, this other guy doesn't even have an NFB grant and yet he decided to film a short adventure through Flin Flon:



Like every other town in Canada, they have a hockey team:



We won't hold it against them that Flin Flon is the birthplace of the legendary whiny worm Bobby Clarke, because Flin Flon was also the home of good guys like Kenny Baumgartner and Dean Evason.

Anyway, that's Flin Flon, one of the thousands of towns in Canada that you never hear anything about.

Friday videos: Ozzy and Sabbath doing "Children of the Grave" in, most appropriately, Birmingham


Here's Ozzy and Sabbath doing "Children of the Grave", which again is a metaphor for shitty junior mining companies:



And who in their right mind would have ever expected that Ozzy would have outlived Ronnie James Dio? I'm shocked, I just now found out that Dio died in 2010.

UPDATE: Apparently you can see Simon Ridgway in the audience. About 2-3 minutes in.


More Silvercorp news


I'll keep reposting links to these news stories so they can get some traction and people can start paying attention:


National Post - B.C. man wins right to sue Canadian mining company he says conspired to falsely imprison him in China. Quote:
A British Columbia man has won the right to sue a company in a Canadian court that he alleges conspired with Chinese authorities to force him to spend years behind bars in China.

The B.C. Supreme Court rejected a bid by Silvercorp Metals Inc. to have Kun Huang’s allegations of “false imprisonment” thrown out.

The Vancouver-based mining company had claimed in court that the case would be better dealt with in the Chinese justice system.

[...]

In his lawsuit, Huang alleged the mining company provided money and encouragement to local police, directing them to detain and interrogate him.

He claimed local police, at Silvercorp’s direction, demanded he turn over passwords to his computer, email and trading accounts associated with EOS.

The documents further allege that Silvercorp used that access to find documents to bolster its defamation claim against Huang.

Following a lengthy detention, Huang was reportedly convicted in September 2013 in a single-day, closed-door criminal trial.

He claims the trial was attended by two lawyers from Silvercorp who effectively acted as prosecution.

Thursday, April 16, 2015

What's wrong with religion?


This is what's wrong with religion:




Silvercorp news


Just cos I hate the bastards, let's repost this news tidbit:


Metro News - B.C. man’s false imprisonment trial against Silvercorp Metals goes ahead. Quote:
The B.C. Supreme Court rejected a bid by Silvercorp Metals Inc. (TSX:SVM) to have Kun Huang’s allegations of “false imprisonment” thrown out.

The Vancouver-based mining company had claimed in court that the case would be better dealt with in the Chinese justice system.

“The burden is on the defendant to establish that the alternative forum is the ‘clearly more appropriate forum,'” wrote Justice Carol Ross in her judgment released Tuesday.

“Silvercorp has not established that China is the clearly more appropriate forum.”

Court documents outlined how Huang worked at the time in China as a researcher for John Carnes of EOS Funds, a New York-based hedge fund manager.

In 2011, he contributed to a brief but damning report that highlighted discrepancies in Silvercorp’s financial and mining output reports to Canadian and Chinese authorities.

In his lawsuit, Huang alleged the mining company provided money and encouragement to local police, directing them to detain and interrogate him.

He claimed local police, at Silvercorp’s direction, demanded he turn over passwords to his computer, email and trading accounts associated with EOS.

The documents further allege that Silvercorp used that access to find documents to bolster its defamation claim against Huang.

Following a lengthy detention, Huang was reportedly convicted in September 2013 in a single-day, closed-door criminal trial.

He claims the trial was attended by two lawyers from Silvercorp who, effectively acted as prosecution.


Thursday morning news


It seems a half-decent Philly Fed reading was enough to inspire Wall Street Whitey to dump PMs starting at 10:00:00.000 AM, which is funny because silver is an industrial metal so a good manufacturing number should be good for silver you'd think, and anyway the regional manufacturing numbers have always have been nothing but bullshit for years so it must just be the dummies who trade on them.

So, let's ignore the bullshit for a bit and read us some news:


Bespoke - bullish sentiment not really. Whitey can't stop piddling his frilly little pink panties.

Bloomberg - time to shut up about "bubbles", Whitey. #1: stocks can't be in a bubble if everyone's calling it a bubble. #2, forward yield of equities should be compared to the alternatives, buddy! #3, man oh man when people finally do shut up about "bubbles" things are really going to take off; you want to participate in that next pop, or not?

Economist - China's economy coming down to earth? No, you lily-white douchenozzle, it's not. Because if you looked at the fucking numbers you'd see the service sector is still growing at >10%. It's just property and manufacturing that's slowed down, and this is explicitly what Xi Jinping has been aiming to do: cool down property, crush pollution, shut down inefficient factories, and transition to service industries. That white-ass honkies still don't get this means they're positioned wrong.

A Gloomy European Economist - thoughts on "structural reform". He notes that the data proves "labour market reform" has utterly no positive effect on economies: you need "product market reform". And, okay, stomping on tax evasion and the kleptocratic elite. In other words, you need to do exactly those things that make you an enemy of the German plutocrats.

Reuters - Indian wholesale prices show deepest drop in 9 years. Modi is getting blessing after blessing from Lakshmi. Cuz he sure ain't earning this himself.

Mickeyman - Hong Kong bling. Nice photos of the kind of beautiful gold products you can buy in the high-end markets in Hong Kong. Because Chinese people are dummies or something, since they should all be buying USTs or stupid utility stocks but instead they're buying a barbaric relic and it's even selling at a big premium to melt so it's not like you can trade these things on the market and BTW there's 1.3 billion Chinese people out there y'know.

Mining.com - Kun Huang wins right to sue Silvercorp for "false imprisonment". Good. And why not? They're a Canadian listed company, so why can't he sue in Canada? Let's just hope the jackasses in the Canadian media pay attention to this story. As for Silvercorp, if I were them I'd be worried that their cozy relationship with local police doesn't now get them in trouble with Xi Jinping... y'know, what with that anti-corruption war that he's been waging.

Conversable Economist - in Denmark the government prefills your tax form for you. They already know how much money you made, they already know where your bank account is, they already know your capital gains. And they have it all on one big computer. So why not just fill it all in for us, send us the form and say "is this right?", and save us all a lot of effort?


Hey Verdmont! Hey! Verdmont! Verdmont? Hey!


Royal Bank:


Cry uncle on that Royal Bank short yet?


Now THIS chart is why you should be paying attention to junior miners


You've got a bunch of insto clowns making smarmy little predictions about how they expect continued gold weakness into the future.

Please understand that they've made those same predictions over the past 2 years, and they've continued to be right, so that's why they keep making them.

I ignore them. The gold chart has already spent two years looking like crap, and these white-ass honkies have continued to make the anti-gold call for all that time. There can be no more negative sentiment added to the gold price from these sources.

With that in mind, as you know I've kept watching gold ex-US, because a) US dollar strength has hidden an important ex-US gold move and b) Americans don't buy gold, so the price of gold in a foreign currency is more important than the price of gold in US dollars.

And in the weekly chart, gold ex-US has looked like this:


It started recovering last November. No slight against Mickey Fulp, since it was one of his writeups that made me pay attention to gold last November: but if he thought that gold smelled different last November, even subconsciously, then some other people did too, and maybe that new positive sentiment is something that has yet to be baked into the gold price.

But more importantly, even though there are loads of miners out there with shitty garbage charts like B2Gold, you can also find too-good-to-be-true to-da-moon-Alice stock charts like this:

Wednesday, April 15, 2015

Further to the previous, DAYUM Mari Saito is DAYUM


Damn I've found a new interest.



Flexible Mute Girl (aka Shizuka McBritches) is Mari Saito, and... dayum, she is just... dayum.

Way more exciting to watch than Lionel frickin' Messi.

In fact, here she is in a bikini, for no reason:

For some reason, two hot ninja schoolgirls duel on a rooftop


Yeah, it doesn't take a lot to keep me from filling out my taxes....



And to think some people waste their time watching stupid Lionel Messi highlight reels.


Interesting point for gold and miners here


I guess I have to start drawing stuff on charts so you can see what the heck I'm talking about. Fine.

Here's gold:



Rolling over, eh?

I'm not so sure. GLD:UDN, or gold ex-US, is still in a gentle uptrend.

But this is interesting:


That's a pennant, and you'd think it's going to break down because gold sucks, right? Everyone hates gold, right? Then why are miners outperforming gold right now? And the pennant is getting dangerously close to being broken to the upside. In which case it's probably because gold (above) breaks back about its SMA(50) and Bollinger mean, which would then be viewed positively by the market I'd think.

And the GDX volume below shows that buying days have seen more volume than selling days.

I dunno. I kinda suspect miners might go up from here, not down. Though I'm not willing to bet money on it right now.

I just wish I owned better miners than shitty B2Gold.


Interview with Ross Beaty


IKN thought it was good and I did too, so go read it:

Sprott - interview with Ross Beaty.

Wednesday morning loony news


Here's some loony news for your reading pleasure:



U Washington - warm blob in Pacific linked to weird US weather. Not as erudite as you'd expect from scientists, but definitely doomy. OMG we all gonna die!

NY Times - credit card processor sets new minimum wage of $70K/yr. Perfectly fair, considering that even the lowly receptionist is contributing to the company's productivity. If only larger companies decided to be this enlightened, we could see 20 years of continuous US growth. But instead the Republican fascists in charge of the economy continually stamp down on the throat of the working class, then wonder why nobody's left to buy their junk. Hopefully we see a sea change in worker remuneration in the future.

Think Progress - Islamic extremists have seized control of American cities! Says some nutbar from the NRA. Wow, the conservative traditional sector of US society must really feel their way of life is under threat if they're this wound up over their folk demons.


And then there's this cartoon:

Tuesday, April 14, 2015

Tuesday morning news


Markets are getting interesting again, the doomer sphere has become very interesting again with story after story about how you should flee stocks, and so now we can start paying attention to the news again:


BI - bubble fears hit the highest level on record. How can we be so sure there's a bubble? Because everyone's pulling their money out of stocks and going into cash! God, give your fucking head a shake. Oh, and the last time there was a peak in people thinking equities were overvalued, according to BAML's chart? 2004. Right before the S&P flew up by 55% over 3 years. Seems that, according to their chart, you're better off selling when everyone thinks shares are fairly valued.


BI - Norfolk Southern wage warning. And thus transports are taking a dive. Because obviously, American workers getting paid more will result in a decrease in consumption, and thus lower transportation earnings, because wharrgarbl potato Rand Paul. Seriously, this is what happens when you let Republican morons manage other people's money: they fuck shit up and underperform SPY.


BI - can you believe some bozo is investing in the market right now? BI laughs at this advice:
Assuming you’re investing this money for the long term — and you have sufficient cash set aside to meet short-term needs and emergencies — go ahead and invest it all at once, says Jerry Miccolis, founding principal of Giralda Advisors, a Madison, N.J. firm that specializes in risk management. "Don’t let headlines about the market hitting new highs make your nervous because, if the market does what it’s supposed to do, that should be the norm," says Miccolis.
He's right. There has never been a time when the US market yielded a negative return over 10 years. Markets are supposed to go up. It's what they do. Capital produces more and more wealth. If you doubt it, then you obviously don't believe in capitalism.


New Deal Demoncrat - the next recession is likely to include wage deflation. So... I guess that means the Fed is likely to keep things accommodative to ensure wage growth speeds up? Or do you think they're so deep in the pockets of big business that they will strangle wage growth at the behest of their corporate masters and put the US in jeopardy of a permanent deflationary spiral next time they tighten to halt overheating? Basically, are you a conspiracy nut or are you a well-adjusted human being?


Econospeak - economists discover the world! Guy really gives a bitch-slap to the supposed "Keynesians" debating secular stagnation:
You mean to tell me that up to now economists have left out the international dimension? If only these New Keynesians had read Keynes, they would have known that Keynes was on to this dilemma in the early 1930s. "National Self-sufficiency," 1933:

"...I have become convinced that the retention of the structure of private enterprise is incompatible with that degree of material well-being to which our technical advancement entitles us, unless the rate of interest falls to a much lower figure than is likely to come about by natural forces operating on the old lines. Indeed the transformation of society, which I preferably envisage, may require a reduction in the rate of interest towards vanishing point within the next thirty years. But under a system by which the rate of interest finds, under the operation of normal financial forces, a uniform level throughout the world, after allowing for risk and the like, this is most unlikely to occur. Thus for a complexity of reasons, which I cannot elaborate in this place, economic internationalism embracing the free movement of capital and of loanable funds as well as of traded goods may condemn this country for a generation to come to a much lower degree of material prosperity than could be attained under a different system."
Oh you didn't!


Mining.com - hedge funds double gold price bets. God, I so don't like being on the same side of the trade as these ignorant white-ass honkies. I bet gold crashes to $1100 now. Everything Whitey touches, he fucks up.


Rocket News 24 - people in Japan are concerned another earthquake is imminent. Pay attention you Business Insider clowns - this is proper dooming:
First up, we had the well-documented mass beaching of a bunch of melon-headed whales (which we are told are actually a type of dolphin and not tiny whales) that happened a few days ago in Ibaraki Prefecture, with around half of the 150 beached dolphins reported to have died. And while some of you may shrug and write this off as a sad accident of some sort, the rest of us are freaking the $’&# out, because just before the last time Japan experienced a major earthquake (you know the one), there was a similar mass beaching of around 50 of the same type of dolphin, and dolphins running themselves aground before major earthquakes has been documented in other parts of the world too.

Now, animals acting weird right before earthquakes is a well-documented thing. Just take a look at this otherwise normal-looking dog that sniffs the ground for a second and then bolts off like there’s someone having a Beggin’ Strips party in the other room just seconds before a 6.5 earthquake strikes the area.

[...]

And, there’s more…

Late Saturday night, April 11, Twitter suddenly lit up with countless Tweets coming out of Mie Prefecture of people claiming they felt tremors and even heard the earth itself briefly rumbling, which to those who experienced the last catastrophic earthquake probably seems like the geological equivalent of a guy cracking his knuckles just before delivering a major ass-kicking.

Still not enough to induce pants-wetting terror for you? On Sunday, April 12, many in Japan reported seeing a so-called “earthquake cloud” looming in the sky.

地震雲も出てるそうじゃないか… もう泣きそう http://t.co/xTYCD4zVKt

ネコレ (@ravedesole) April 11, 2015

While this is probably the most tenuous evidence for an impending earthquake, such clouds have been reported prior to major earthquake events since antiquity and, while, largely, not endorsed by the scientific community, earthquake clouds definitely get a lot of traction with the sandwich board crowd.
Oh good. Time to get out of CJP.to. You might laugh, but I think Japanese would have a better understanding of portents of earthquakes, having experienced them for the millenium and a half that their civilization has been in Japan.


News.com.au - I went from broke to an instant millionaire. A gringo hippy learns how cheap it is to live in Venezuela. Get this:
For a single US dollar ($1.31) I could buy 12 beers, get a bed for the night, take two taxis or eat in a nice restaurant. I could fill up a car at a local gas-station for 2 bolivars, around 1 US cent.
Sounds great, I guess, as long as you can handle it.


Oh and as for China, our swarthy buddy notes that H shares are only trading at a P/E of 10.39, which to him is reasonable, and sounds reasonable to me too for a country that should grow at over 4% for the next decade. So yeah, no imminent crash in China, guys. P/E multiples go up when there is more capital than there is demand for it.

Monday, April 13, 2015

I think it started going downhill in the third season


Here's an actual full episode of Everybody Loves Hypnotoad:



He has a bright future working in CorpCom I think.

Congrats Rob McEwen, you made the news


Yahoo News - mining company in Mexico has "good relationship" with cartels. Mr. McEwen, here are a few things you need to know:

1. This is why professional, publicly-traded corporations hire CorpCom people.

2. This is why professional CEOs of publicly-traded corporations obey the corporate communications policy which says you are to say only what the hell the CorpCom people tell you to say and no more.

3. "CorpCom people", for the purposes of this discussion, does not mean a little 24-year-old hottie niece of a geologist who takes care of IR and boothbabing.

4. Yeah so basically Bob you might want to retire your ego and hire a professional corporate communications director.

UPDATE:

IKN - I think McEwen is starting to figure it out. Yup, I think McEwen is in the market for a Director of Corporate Communications now.

UPDATE 2:

IKN - whoops, no, he didn't. Yup, I guess McEwen is still trying to dig himself out on his own.


The most important gold news story of the year


The single most important thing that affects gold demand in the world is:

Sunday, April 12, 2015

Reminder about gold ex-US


Look at this chart:


Again, gold's bear market seems to have ended back in November 2014.

And it'd be nice to see it take off again next week.

And Wall Street Whitey thought that his stupid-ass country and its stupid-ass interest rates had anything to do with the price of gold?