Has The Industrial Silver Panic Begun? Major Japanese Electronics Firm To Lock In Silver Supply From First Majestic, Citing Supply Concerns

stacked-silver-coinsAs regular readers know, we have long warned that the End Game for the banksters manipulation of the bond markets & interest rates via gold and silver manipulation will occur when industrial users of physical silver, namely the colossal electronics industry- sniff the first signs of a wholesale shortage of physical silver, and begin panic hoarding of silver to ensure continued production of their tech gadgets.
As First Majestic CEO Keith Neumeyer reveals in this stunning Bloomberg interview, that End Game industrial supply panic may have just begun…

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Neumeyer reveals a major Japanese electronics firm has approached First Majestic to lock in physical silver, citing supply concerns:

A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal.

“For an electronics manufacturer to come directly to us — that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. “I think we’ll see three-digit silver,” he said, predicting the metal could surge to $140 an ounce by as early as 2019.

A reminder as to how critical the industrial side of the silver equation is:

‘Strategic Metal’

While long coveted for use in jewelry, coins and utensils, silver is increasingly in demand for its industrial applications. Last year, about half of global silver consumption came from such use, including mobile phones, flat-panel TVs, solar panels and alloys and solders, according to data compiled by GFMS for the Washington-based Silver Institute.

“Silver is not a precious metal, it’s a strategic metal,” Neumeyer said in an interview in Vancouver, where the company is based. “Silver is the most electrically conductive material on the planet other than gold, and gold is too expensive to use in circuit boards, solar panels, electric cars. As we electrify the planet, we require more and more silver. There’s no substitute for it.”

Credits and full article here.

World’s 16 biggest banks, including RBC, ordered to face Libor lawsuits in ruling court warns could ruin them

thomas-jeffersonSixteen of the world’s largest banks including JPMorgan Chase & Co. and Citigroup Inc. must face antitrust lawsuits accusing them of hurting investors who bought securities tied to Libor by rigging an interest-rate benchmark, a ruling that an appeals court warned could devastate them.

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The appellate judges reversed a lower-court ruling on one issue — whether the investors had adequately claimed in their complaints to have been harmed — while sending the cases back for the judge to consider another issue: whether the plaintiffs are the proper parties to sue, in part because their claims, if successful, provide for triple damages that could overwhelm the banks.

“Requiring the banks to pay treble damages to every plaintiff who ended up on the wrong side of an independent Libor‐denominated derivative swap would, if appellants’ allegations were proved at trial, not only bankrupt 16 of the world’s most important financial institutions, but also vastly extend the potential scope of antitrust liability in myriad markets where derivative instruments have proliferated,” the U.S. Court of Appeals in New York said in the ruling.

Bank of America Corp., HSBC Holdings Plc, Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Royal Bank of Canada and Royal Bank of Scotland Group Plc are also among the banks sued in Manhattan.

Libor Fines

About a dozen firms have paid almost US$9 billion in fines to resolve government investigations around the world into rigging of the key benchmark. Libor is used to set interest rates for trillions of dollars financial instruments. The ruling by a three-judge panel opens the possibility the banks may have to pay billions more.

This is far from a home run for the plaintiffs. But it does allow them to go forward with the case.”

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Michael A. Carrier, a professor at Rutgers Law School in Camden, New Jersey, said the ruling was “extremely important” because of the threat to the banks. Any kind of price manipulation by competitors is treated very seriously under U.S. antitrust law, he said.

The 24-company KBW Bank Index fell 0.3 per cent Monday, bringing its decline for the year to 6.1 per cent.

Antitrust Claim

The appeals court overturned a 2013 ruling by U.S. District Judge Naomi Reice Buchwald who said the investors had failed to show that they were harmed in a way that would permit them to sue under U.S. antitrust law.

In their lawsuits, the plaintiffs claim that beginning in 2007 the banks colluded to depress the Libor rate to minimize the amount they had to pay out on investments linked to the benchmark. The Libor-tied investments included asset swaps, collateralized debt obligations and forward rate agreements.

Buchwald may still throw out the cases if she determines the plaintiffs aren’t the appropriate parties to sue — or, as antitrust law puts it, “efficient enforcers.” That could be because their potential damages are too speculative or too hard to calculate or for some other reason. The court also highlighted the risk that civil litigation could duplicate the fines and settlements imposed by government regulators.

“This is far from a home run for the plaintiffs,” said Carrier. “But it does allow them to go forward with the case.”

Government Enforcement

The ruling was unanimous, although only two appeals cåçourt judges joined the portion that instructed Buchwald to consider whether the plaintiffs are appropriate parties to sue. The two judges pointed to numerous enforcement actions involving Libor as they returned the case to the lower court.

“There are many other enforcement mechanisms at work here,” the two said in an opinion written by Judge Dennis Jacobs. “In addition to the plaintiffs in the numerous lawsuits consolidated here, the banks’ conduct is under scrutiny by government organs, bank regulators and financial regulators in a considerable number of countries.
Lawrence Grayson, a spokesman for the Charlotte, North Carolina-based Bank of America; Andrew Gray, a spokesman for JPMorgan; and Danielle Romero-Apsilos, a Citigroup spokeswoman, declined to comment on the ruling. Representatives of HSBC and RBC declined to immediately comment.

The case is Gelboim v. Bank of America Corp., 13-3565, U.S. Court of Appeals for the Second Circuit (Manhattan).

Credits and full article here.

Business Debt Delinquencies Are Now Higher Than When Lehman Brothers Collapsed In 2008

Insolvent-Public-DomainYou are about to see more very clear evidence that a new economic crisis has already begun.  During economic recoveries, business debt delinquencies generally fall, and during times of economic recession business debt delinquencies generally rise.

For some of the lowest gold and silver prices in Singapore visit www.SilverAg.com.sg

In fact, you will see below that business debt delinquencies shot up dramatically just prior to the last two recessions, and the exact same thing is happening again right now.  In 2008, business debt delinquencies increased at a very frightening pace just before Lehman Brothers collapsed, and this was a very clear sign that big trouble was ahead.  Unfortunately for us, in 2016 business debt delinquencies have already shot up above the level they were sitting at just before the collapse of Lehman Brothers, and every time debt delinquencies have ever gotten this high the U.S. economy has always fallen into recession.

In article after article, I have shown that key indicators for the U.S. economy started falling in either late 2014 or at some point during 2015.  Well, business debt delinquencies are another example of this phenomenon.  According to Wolf Richter, business debt delinquencies have shot up an astounding 137 percent since the fourth quarter of 2014…

Delinquencies of commercial and industrial loans at all banks, after hitting a low point in Q4 2014 of $11.7 billion, have begun to balloon (they’re delinquent when they’re 30 days or more past due). Initially, this was due to the oil & gas fiasco, but increasingly it’s due to trouble in many other sectors, including retail.

Between Q4 2014 and Q1 2016, delinquencies spiked 137% to $27.8 billion.

And we never see this kind of rise unless the U.S. economy is heading into a recession.  Here is more from Wolf Richter

Note how, in this chart by the Board of Governors of the Fed, delinquencies of C&I loans start rising before recessions (shaded areas). I added the red marks to point out where we stand in relationship to the Lehman moment:

Delinquencies-commercial-industrial-loans-2016-q1

Business loan delinquencies are a leading indicator of big economic trouble.

To me, this couldn’t be any clearer.

 

Just like the U.S. government and just like U.S. consumers, U.S. businesses are absolutely drowning in debt.

In fact, a report that was just released found that debt at U.S. companies has been growing at a pace that is 50 times faster than the rate that cash has been growing.

Just imagine what it would mean for your family if your debt was growing 50 times faster than your bank account.  Needless to say, this is an extremely troubling development

Well, American companies may just have a mountain’s worth of problems, according to a new report from Andrew Chang and David Tesher of S&P Global Ratings.

“At the same time, the imbalance between cash and debt outstanding we reported on last year has gotten even worse: Debt outstanding increased 50x that of cash in 2015,” wrote Chang and Tesher.

“Total debt rose by roughly $850 billion to $6.6 trillion last year, dwarfing the 1% cash growth ($17 billion).”

And the really bad news is that banks all across the country are starting to tighten credit to businesses.

In other words, they are beginning to become much more reluctant to loan money to businesses because debts are going bad at such an alarming rate.

When the flow of credit to the business community starts to slow down, it is inevitable that the overall economy slows down as well.  It is just basic economics.  So the deterioration of the U.S. economy that we have witnessed so far is just the beginning of a process that is going to take quite a while to play out.

And let us not forget that most of the rest of the world is already is much worse shape than we are.  Most global financial markets are officially in bear market territory right now, and some nations are already experiencing full-blown economic depression.

Now that the early chapters of the “next crisis” are here, most American families find themselves ill-equipped to deal with another major downturn.  In fact, USA Today is reporting that approximately two-thirds of the country is currently living paycheck to paycheck…

Two-thirds of Americans would have difficulty coming up with the money to cover a $1,000 emergency, according to an exclusive poll, a signal that despite years after the Great Recession, Americans’ finances remain precarious as ever.

These difficulties span all incomes, according to the poll conducted by The Associated Press-NORC Center for Public Affairs Research. Three-quarters of people in households making less than $50,000 a year and two-thirds of those making between $50,000 and $100,000 would have difficulty coming up with $1,000 to cover an unexpected bill.

What are these people going to do when they lose their jobs or their businesses go under?

If you have any doubt that the U.S. economy is already in recession mode, just look at this chart over and over.

For months, I have been warning that the same patterns that immediately preceded previous recessions were happening once again, and this rise in debt delinquencies is another striking example of this phenomenon.

This stuff isn’t complicated.  Anyone that is willing to be honest with themselves should be able to see it.  As a society, we have been making very, very bad decisions for a very, very long period of time, and what we are watching unfold right now are the inevitable consequences of those decisions.

Credits and full article here.