Tuesday, June 17, 2014


Hooray! Managed to post this before the power goes out from the thunderstorm!

Pragmatic Capitalism - the most hated economic recovery ever. He has a large amount of charts and data that show how much the whiners are off-base. Especially interesting is how industrial production is "almost 1% above the 40-year average of 2.4%". Sorta shows how much the paleoconservatives are lying about "industrial stagnation", eh? But you should expect this sort of complaining; after all, Obama is black, he can't be successfully leading America!

Bespoke - 10Y yield testing resistance. We'll see what happens to equities then.

Reformed Borker (Bork Bork Bork!) - solar stocks break out. Too bad there's no Canada-listed solar ETF, as far as I know.

Mineweb - amid high inflation, gold gains in India. Wait, what's this I see here?:
"In India, headline inflation shot up in May to 6.01% to a five month high and as macro pressures appeared to accentuate, the rupee has breached the 60 to the dollar mark, at a one and a half month low. The worrying part is that the high inflation number has come now even before the projected weak monsoon has played out,'' said Satheesh Mathur, analyst with a brokerage house.

He added that since gold is a safe haven investment, it saw a firming trend and reclaimed the $466 (Rs 28,000) mark on the domestic front.
Wait a sec... there's high inflation in India? And Indians buy gold to protect against inflation? Um... has anyone told Wall Street Whitey?

IKN - Peru GDP: luck runs out. Wait, what's this he says?:
Peru got lucky and has rode the high margins from commodities for a while, but now the luck has ran out they have no special formula, no secret sauce, nothing but a few prayers to offer to the copper price Gods. Far from creating some new and fanciful growth miracle, Peru is falling into the same classic traps of shoring up a reduced margin primary growth export model with expanded credit.
No shit, eh? Sounds like the classic definition of a secular EM bear cycle, eh?

Mining.com - iron ore crashes through $90. Which I guess is good for China's economy, since they use so much of it. This is the disconcerting bit:
Estimates vary wildly but the portion of iron ore and copper stockpiles at the country's ports tied up in these deals could be as high as 60%.

Last week's revelation that authorities are probing whether traders at the port of Qingdao pledged the same copper, iron ore and aluminum inventories as collateral for loans multiple times to different banks could mean and end to practice altogether.
Disconcerting for copper (let's be honest, we don't give a damn about iron ore miners, do we?), but also disconcerting if you suspect 2000t of gold has been tied up as financing collateral, not bought by the Chinese central bank because fiat Weimar Zimbabwe.

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