Sprott Scarfing Down More Silver!The Sprott Physical Silver Trust has announced a secondary offering to buy $75 million worth of silver. (link) To be expected, PSLV shares took a sharp dive on Friday, frustrating some. One commenter on The Wall St For Main St YouTube channel noted, “I will double down but this offering killed my return for the year in the PSLV.” The frustration is understandable.
Wall Street isn’t buying the latest BLS BS. That’s what Friday’s trading action indicates. Is it any wonder? The statistical contortions in the latest U.S. Bureau of Labor Statistics employment report are downright amazing. Take the retail sector, for example. Jeffrey P. Snider at Alhambra Investment Partners fired-off an incisive missive this morning, including this gem of an observation:
In the latest payroll farce, the update for March 2016, employment in the retail industry was estimated to have grown by another astounding 47.7k employees (seasonally adjusted) after absolutely surging by more than 65k in each of the two months prior. In the six months since September, as retail sales have tumbled significantly below that 3% line, the BLS estimates that retail employment is up an enormous 261k jobs. That is a ridiculous 43.5k per month, which is just about three times the rate figured for the period starting August 2003 through August 2005 (15.8k per month) when retail sales were growing by an average 6%.
Click here to read Snider’s full paper. Dave Kranzler also published on-target analysis (click here); Kranzler’s dissection of real-estate and construction trends within the latest BLS BS are flying under the radar of nearly ALL money managers.
With retail sales representing over 65% of the Gross Domestic Product of the United States, this divergence all by itself undermines BLS BS. I mean, seriously, someone needs to send Janet Yellen some aspirin. What with her talking down economic expectations recently, she’s probably sporting a major headache this weekend. One does have to marvel and the rotation we see with “jawboning” and perceptions management as the so-called stewards of our financial and monetary system rotate every other week as part of their official “economic policy.”
I contend that a big part of what’s going on is being driven by policy maker fears about the potential for the U.S. dollar to blast to the upside, which would break fragile, financial markets – and ultimately, it would eventually send bank balance sheets into the crapper as a deflationary spiral of an imploding shadow banking system would likely result.
Back in January, I discussed on Weekly Metals & Markets and on Welcome To Dystopia with Jason Burack that policy makers appeared to be extremely worried about a rocketing US dollar, and that they would be going apoplectic if the “DXY” dollar index reached 105.
Janet and her merry band executed the Fed’s token December rate hike, and the general consensus was that the dollar was going to drift higher, moving well past the 100 mark on the DXY index. Fast-forward to this week and take a look at this week’s events in the context of the dollar’s trading. Back on March 18th, the DXY bottomed at an intraday low of 94.605. By March 28th, the DXY moved back up to 96.420 on an intraday basis.
The very next day, Chairwoman Yellen hit the stage at the Economic Club of New York to deliver her speech, “The Outlook, Uncertainty and Monetary Policy” and she served-up a dovish outlook. Down went the dollar — and to think, many sell-side analysts continue to peddle a rising dollar story, and interest rate normalization blather.
The market isn’t buying this BS, and Friday’s trading is a representative sample of a growing number of nervous money managers that are starting to understand that the central bankers no longer have their back. We’ve witnessed the greatest injection of liquidity the financial world has ever seen since 2008, and the only thing we have to show for it is a ridiculous acceleration of wealth inequality as policy makers have bailed out the financial system with your future taxes and future depreciated purchasing power of your currency.
Our dear leaders have tried to hide this pain, pushing it into the future, with the hope that veritable Matrix-level disinformation about economic statistics will serve as a temporary mask concealing morally bankrupt economic policy. Management of Perspective Economics has indeed become part of Western economic policy. Disgusting.
But at least some economists are telling the truth. Remember William White’s warning last January? The former chief economist for the Bank for International Settlements said, “The situation is worse than it was in 2007.” White even quipped, “Debt jubilees have been going on for 5,000 years,” and that, “It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something.”
Former Dallas Fed Board President Richard Fisher has been dropping particularly potent truth bombs going back to December, and last month, berating monetary authorities for supplying crack and heroin to Wall Street. Not everyone is peddling BS. You just need to know where to look to see bankers speaking truth to power.