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Wednesday, January 20, 2016

Markets In TurmOIL: Futures Plunge, Japan Enters Bear Market, Crude And Commodity Currencies Crash

It all started early last night when the front month oil contract dipped below $28 giving a taste of what was to come. It was all downhill from there.
First Chinese stocks ended the recent ramp higher, with the Shanghai Composite closing down 1% back under 3000, then Japan's rout accelerated with both the Nikkei (-3.7%) and the Topix Index sinking into bear markets, both falling more than 20% from their 2015 highs.
The rout then spilled over to Europe, where the Stoxx 600 is down 3% to the lowest level in 13 months, and finally making landfall in the US where the E-mini is down 1.8%, trading at 1840, meanwhile WTI is back under $28 while the USDJPY plunged to a one year low and barely rebounded despite an attempt at verbal intervention when an unknown Japanese government source said they are "closely watching currency movements", which lead to a 100 pip spike in the pair that was promptly faded. 
In sum: the world is on the verge of a global bear market, exacerbated by an ongoing earnings deterioration which has sent the MSCI gauge of global equities to the brink of a bear market. But the biggest driver remains oil whose slump to a new 12-year low is ripping through markets. Just on Wednesday, Royal Dutch Shell Plc said profit may drop at least 42 percent in the fourth quarter. U.S. bonds now predict the slowest inflation since May 2009. 
Commodity currencies were slammed with Russia’s ruble and Mexico’s peso falling to record lows, while bets mounted on an end to Hong Kong’s dollar peg. 
Saudi Arabia also launched capital controls when it was reported overnight that it had ordered a halt to Riyal forward option trades.
Yields on 10-year Treasuries dropped below 2 percent and the yen jumped to a one-year high.
“It’s back to oil and that’s what is driving everything at the moment,” Barra Sheridan, a rates trader at Bank of Montreal in London told Bloomberg. “We can easily run more because it’s pure fear. I don’t know what we need to change this sentiment.”
Well a central bank intervention or two would help. For now, this is where the "running" has taken global assets as of moments ago:
  • S&P 500 futures down 1.8% to 1840
  • Stoxx 600 down 3% to 323
  • FTSE 100 down 2.9% to 5706
  • DAX down 3.1% to 9361
  • German 10Yr yield down 6bps to 0.49%
  • Italian 10Yr yield up 2bps to 1.57%
  • Spanish 10Yr yield down 2bps to 1.69%
  • MSCI Asia Pacific down 2.8% to 117
  • Nikkei 225 down 3.7% to 16416
  • Hang Seng down 3.8% to 18886
  • Shanghai Composite down 1% to 2977
  • US 10-yr yield down 9bps to 1.97%
  • Dollar Index down 0.12% to 98.87
  • WTI Crude futures down 2.8% to $27.65
  • Brent Futures down 2.2% to $28.12
  • Gold spot up 0.7% to $1,094
  • Silver spot up 0.5% to $14.10

Credit to Zero Hedge

Two Farming Experts Predict Massive American Food Shortages




adams homeless food

Cliff Harris has been making accurate predictions about farming and food trends for over 40 years. Ed Petrowski has been farming the fields of Pratt, Kansas for decades. I had both men on show this past Sunday night to present to the world a farmer’s perspective on what is happening with our food supply.
cbs reports on hunger in americaOne of the more stunning trends that both men pointed out was the fact that over 15% of American farmers will leave the business this year because of extreme government intrusion. They both said that there will be an extreme food shortage as a result. In fact, they both said there would be a food crisis in the United States anyway. And as Cliff Harris, a climatologist pointed out, there would be a food shortage anyway due to extreme weather changes.
This was an one hour interview, where I probably did not say 100 words. I wanted the listening public to listen to two prominent men in field of farming about what is really happening to the American food supply instead of reading the lies contained in various government reports.
Listen to this stunning interview by clicking here.

Credit to Common Sense

Farage: A contagion is spreading across Europe

Huge Increase In U.S. Families Preparing For Catastrophe As “Prepping” Goes Mainstream

PreppingPrevention, in this case, means making sure that one is ready to face events in which the essentials for survival are not available at the local supermarket and where the supply of power or water is no longer something that can be taken for granted. In recent years, many Americans have become entirely dependent on the government, while others remember the lessons learned by those who came before them. 

So, while the rest of the world may be tempted to view preppers as a source of amusement or the object of derision and suspicion, there may come a day when it becomes painfully evident that these “wackos” were right all along. And in true American fashion, these will be the ones who can survive and be able to impart the value of self-reliance to future generations.

Credit Skywatchtv.com


Gold Price in Russian Rubles

Tuesday, January 19, 2016

"Countdown To The End": EU Officials Say Europe Is "Going Down The Drain"


Image result for money on the drain
Back in September, when Berlin and Brussels were busy devising a quota plan to settle the millions of Mid-East asylum seekers flooding into the country, Slovakia said that if Germany called for financial penalties against countries unwilling to accommodate their “share” of migrants, it would be “the end of the EU.”
That might have seemed hyperbolic at the time, but since then, the situation has spiraled out of control. Border fences have been erected, refugee camps are overflowing, and anti-migrant sentiment is running high after a series of reported sexual assaults on New Year’s Eve sparked a bloc-wide scandal.
In a testament to just how tense things have become, Austria suspended Schengen on Saturday as new rules came into effect for those seeking to traverse the country on the way north.  “Anyone who arrives at our border is subject to control,” Chancellor Werner Faymann said. “If the EU does not manage to secure the external borders, Schengen as a whole is put into question... Then each country must control its national borders,” he added, before warning that if the EU could not better control its external borders “the whole EU [will be] in question.”
Indeed, the idea that the worsening migrant crisis could well bring an end to the EU has made its way out of Eurosceptic circles and into discussions between the bloc's top diplomats and officials.
"The Germans, founders of the postwar union, shut their borders to refugees in a bid for political survival by the chancellor who let in a million migrants," Reuters wrote on Sunday, describing a hypothetical European endgame. "And then -- why not? -- they decide to revive the Deutschmark while they're at it." 
Both Angela Merkel and Jean-Claude Juncker were out last week with stark warnings about the prospects for the union's survival in the face of widespread disagreement among member countries regarding how to handle the influx of asylum seekers. Europe is now "vulnerable" Merkel admitted, before saying the fate of the euro is "directly linked" to how the bloc handles the refugee crisis."Nobody should act as though you can have a common currency without being able to cross borders reasonably easily," the Chancellor, whose ratings have slipped amid the migrant debate, said at a business event in Mainz.
Juncker's assessment was more dire. Europe "is on its last chance" he warned, before saying he hopes this isn't "the beginning of the end." 
"Some see that as mere scare tactics aimed at fellow Europeans by leaders with too much to lose from an EU collapse," Reuters continues. "[But] empty threat or no, with efforts to engage Turkey's help showing little sign yet of preventing migrants reaching Greek beaches, German and EU officials are warning that without a sharp drop in arrivals or a change of heart in other EU states to relieve Berlin of the lonely task of housing refugees, Germany could shut its doors, sparking wider crisis this spring."
Make no mistake, were Germany to stop accepting refugees, a dangerous chain of events would unfold just as warmer weather makes the journey more appealing for refugees. Arrivals have not slowed during the winter months, a senior conservative German lawmaker said. "You can only imagine what happens when the weather improves." If Germany's open-door slams shut in the spring, millions of asylum seekers would be stuck along the Balkan route where bottlenecks led to border clashes between Hungarian riot police and migrants last year. 
Croatia, Serbia, and Slovenia are in no position to accommodate the influx. Indeed, Slovenian officials have long said that the only reason the tiny country has been able to cope is because just as many migrants leave each day on their way to Germany and Austria as enter via Croatia. On Monday, Slovenian PM Miro Cerar said that "if Germany or Austria adopt certain measures for stricter controls then of course we will adopt similar strict measures with our southern border with Croatia."
"Millions, and I stress millions of migrants from Afghanistan, Iraq, Syria, Algeria, Morocco are ready to enter the EU once the weather improves in the coming months," he cautioned.
The EU Commission sought to play down Austria's implementation of border controls, saying it's "nothing out of the ordinary." Of course any emergency measure is "out of the ordinary" by definition. Border checks will continue until at least February. 
Meanwhile, each passing day seems to present a new reason for Europeans to become increasingly disaffected with officials' handling of the crisis. Two days ago for instance, German FinMin Wolfgang Schaeuble proposed a bloc-wide petrol tax to fund the cost of securing the EU's external borders. While Europeans will surely support the notion that the EU needs to better secure the chokepoints through which the majority of asylum seekers enter, migrants will now be equated with higher prices as the pump just as they are becoming synonymous with terror and sexual assaults.
Ultimately, it appears that Germany is beginning to crack. While Merkel has been careful to preserve the "yes we can" narrative, reality is setting in and the cold facts suggest that Europe simply cannot accommodate the people flows. It now appears that it is not a matter of "if" but rather "when" the Iron Chancellor finally gives in and shuts the doors, and on that note, we'll close with two quotes from German and EU officials who spoke to Reuters "in private."
"We have until March, the summer maybe, for a European solution. Then Schengen goes down the drain."

"There is a big risk that Germany closes. From that, no Schengen ... There is a risk that February could start a countdown to the end."

Credit to Zero Hedge

Prime Minister Netanyahu: “We Will Not Allow Iran To Have Nuclear Weapons”


Image result for “We Will Not Allow Iran To Have Nuclear Weapons”


After the International Atomic Energy Agency (IAEA) stated on Saturday that Iran has made all the necessary steps to fully implement the international nuclear agreement with the P5 +1 countries, both the US and EU removed previously imposed sanctions on Iran.

During a meeting with his cabinet earlier this morning, Prime Minister Netanyahu made it clear that Israel would still continue to closely monitor Iran’s activities.

“Pursuant to the nuclear agreement with Iran, Israel will continue to monitor all international violations by Iran including the nuclear deal, the agreement on ballistic missiles and terrorism,” said Israel’s Prime Minister.

“Israel’s policy was and continues to remain exactly as it was, not to allow Iran to acquire nuclear weapons,” added Netanyahu.

The Israeli prime minister also spoke of the need for the international community to reenact sanctions against Iran in light of any action by Iran that violates the international agreement on its nuclear enrichment program.

“The international community must impose severe, hard sanctions for each violation,” stressed Israel’s Prime Minister. “If it had not been for our efforts to move ahead with the sanctions and to stop Iran’s nuclear program, then Iran would have already had nuclear weapons.”

A “snapback” provision in the Iran nuclear agreement allows for the P5+1 countries to automatically re-impose sanctions on Iran in response to any Iranian violation of the nuclear agreement. However, critics doubt the usefulness of such a provision, arguing that the “snapback” process is both convoluted and vague.

Netanyahu also addressed terror threats emanating from Iran’s continued aggression in the region.

“What is clear is that Iran will now have more means to turn to its terrorist activity and aggression in the region and the world, and Israel is prepared to handle any threat,” Netanyahu stated.

Credit to Jewishpress.com
Jonathan Benedek