Pomp And Circumstance

The economy is starting to really fall out of bed. I know someone who has got many metal buildings for sale and told me that his company is 20% below its projected business plan this month. Both the NAR and the Census Bureau released their existing/new home sales reports for December. The NAR claims a small bounce in sales occurred during December. The Government would have us believe in a large bounce in new home sales. Both reports are heavily contradicted by supporting data reports (like mortgage purchase applications). If you’re looking to purchase a steel/ metal building. Check out these metal buildings for sale today, and find yourself a cracking deal!

I have not had time to thoroughly sift through those two reports or the most recent homebuilder earnings reports (DR Horton and Pulte). I’ll have a lot more to say on those matters sometime this weekend and IRD reiterates its “look out below” forecast.

Today the NAR released its Pending Home Sales Index for December and it showed an unexpected plunge of 3.7% (.5% gain was expected) from November. It was the second-biggest monthly plunge since May 2010. Pending home sales (and note, the report is an “index” based on estimates from data samples) are based on contract signings. New home builders are experiencing roughly low-mid 20% in cancelled contracts.

Surprisingly, despite the move higher in the Dow Jones Home Construction Index (DJUSHB) this week, several readers bought my homebuilder short reports. One of my short-sell picks is down over 24% since I published it on July 30th. This is despite the S&P 500 rising 2.6% in the same time period. At some point soon, I am going to update my current reports with the respective companies’ latest earnings and news. But I am also going to raise the price by $5 as I re-publish the updated reports (anyone who has already purchased the reports can email me for a complimentary copy of the updates).

Also wanted to link this article from the Financial Times today about Russia buying record amounts of gold. Recall, the rumor a couple months ago, obviously floated by the bullion banks, was that Russia was dumping gold. Of course, ex post facto, it turned out that Russia added a lot more gold to its holdings over the last few months:

Russia accounted for about one-third of central banks’ gold purchases last year as the country spent more on the metal than at any time since the break-up of the Soviet Union amid escalating tensions with the west and a collapse in the value of the ruble.

Central banks around the world bought a net 461 tonnes of gold in 2014 — 13 per cent higher than the previous year and the second-highest level since the collapse of the gold standard in 1971 — as they continued to diversify their currency reserves following the financial crisis. They have added 1,800 tonnes to their holdings in the past six years.

Moscow’s shopping spree of the yellow metal was driven by a desire to shift away from a dependency on the dollar and provide support to the beleaguered ruble. Russia’s currency has lost half its value against the dollar in the past year on the back of the plunging oil price as well as western sanctions. The central bank’s foreign currency reserves, mainly US and European government bonds, have also fallen.

You can read the rest of the article at the Financial Times (for some reason I can’t publish with a link to the FT but the title is “Russia Buys Record Amounts Of Gold”).

The Orwellian smoke blowing from Wall Street and DC is getting immensely thick. I’m not sure anyone in the brokerage industry, Congress or the White House is capable of telling the truth even if they felt compelled. I have a spooky feeling our system is really starting to fall apart behind the scenes…

7 thoughts on “Pomp And Circumstance

    1. So far, nobody caught the delicious and sad irony of my post & the song. BTW, Doug and David Larry have very meaningful posts below. There are yet further grand designs afoot to achieve further debasement and conversion of the fiat tokens of your toil. That is, total theft. These are the scenes as we accelerate down the rabbit hole, to meet Alice. I’ll have a word with the Queen for sure.

  1. One of my recent Rip Van Winkle friends who has awaken
    from his deep slumber brought something to my attention.
    Apparently CNN has been floating the idea of the North American
    Union on their broadcasts during the day. I don’t watch television
    especially the Communist News Network. Just a few years ago
    anyone who brought up a North American Union was labeled
    a “tin foil hat” now it’s being openly being soft sold to the viewing
    sheeple. Maybe that whole idea of a North American currency is
    no longer conspiracy theory. Just have to program the sheeple
    with televisions subliminal suggestion and you will have the herd
    saying “yea I’m down with that”. What do the kardashians think?

  2. If you look the last few days at the gold market you know for sure this whole financial edifice will break apart soon. S&P will drop between 50% and 70% the next ca. two years. The central bankers can sit together and decide if they want to drop the interest rates to -10% or whatever their stupid Keynsian ideology is telling them.

    1. Seems to me that negative interest rates will drive gold supplies to zero at anywhere near these prices, especially if you see moves to cashless economies so that people cannot escape negative interest rates by hoarding cash. Tic toc

  3. Dave:
    I think the problem with linky to the FT is that the FT requires a subscription. I have a lot of trouble gaining access to articles in the FT (a paper I greatly respect) because of this.

  4. Think it will explode very soon personally a lot less than 2 yrs.Wouldn’t other metals be a store of wealth? Metals looking very cheap.

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