GOLDMAN OUT WITH SUPER BULLISH REPORT ON BASE METALS: CHINESE CREDIT EXPANSION TO PUSH METAL INVENTORIES INTO DEFICIT

It doesn’t get more bullish than this, folks. Our good friends at Goldman Ballsachs have declared the recent run in the base metals to be only the beginning of a much larger more to he upside, the single best environment for the commodities since China stimulated their economy in 2009.

It’s very important that I communicate this effectively to you. After all, I am here to help.

The Trump infrastructure bill truly does pale in comparison to what is taking place in China, as their centrally planned command economy mandates lending into old economy industrials. The increase in credit is having a profound effect on the prices of base metals and this should continue throughout the year.

If you’re a Chinese leader, you understand that relying upon foreign trade to pay your bills makes you vulnerable to harsh set backs. The best place for them to put money is their own economy, sort of like what Trump is trying to do now.

Source: Bloomberg

A rerun of China’s massive stimulus during the financial crisis is set to offer another boost to global metals prices, according to Goldman Sachs Group Inc.

Strong credit expansion has “remarkably bullish” implications for the nation’s metals-intensive industries as fixed-asset investment and manufacturing are poised to accelerate, the bank said in a report. New lending to the so-called old economy in December and January jumped by 1.1 trillion yuan ($160 billion) from a year earlier, equivalent to more than one and a half years of U.S. President Donald Trump’s mooted infrastructure package, it said.

Industrial commodities have enjoyed a rebound in the past year on improved demand from property and infrastructure in China, the world’s top metals user. The benchmark copper price in London is up 32 percent from a year ago, while iron ore has nearly doubled. This time last year, the Chinese government embarked on a massive credit-driven stimulus in response to an economic slowdown, boosting credit at a pace not seen since the 2009 financial crisis.

“The resulting acceleration in metals demand is expected to push the copper market, as well as other base metal markets such as nickel and zinc, into deficit, leading to inventory draws, a tightening of the futures curve spreads, and higher prices,” the bank’s analysts including Mikhail Sprogis and Jeffrey Currie wrote in the note dated Feb. 16.

In the note, Goldman evokes the China’s 2008-09 stimulus, when the nation embarked on massive infrastructure spending to offset cratering global growth following the western financial crisis. This time around, President Xi Jinping’s government is trying to prop up the economy, while grappling with growing debt and overcapacity. New lending to the old economy in the two months to January jumped 50 percent to 3.3 trillion yuan from a year ago, the bank said.

The pick-up in Chinese copper demand “is likely to happen during a period when inventories normally draw due to seasonal factors,” Goldman said. “This is expected to magnify the inventory draw and tighten spreads, pushing copper into backwardation.”

Copper in London traded at $6,051 a ton by 5:26 p.m. Hong Kong time, after reaching the highest price since May 2015 earlier in the week. The bank maintained its price forecast at $6,200 a ton.

In my opinion, this is extremely bullish for zinc stocks, like $VEDL, $TECK and $HBM. Iron ore and steel should get a bump. I prefer $X and $CLF.

Dr. Steve Pieczenik is the real deal — old school intelligence officer who claims to be part of a group of retired and active intelligence officers who leaked the Podesta emails to Wikileaks in order to derail Hillary’s campaign. To be honest, these type of men make me uncomfortable. I am merely succored by the fact that he is supporting someone that I like. Now if I was a HILLBOT or someone interested in derailing Trump, this man would terrify me.

For those of you unfamiliar, Dr. Pieczenik is the real deal — with a resume stretching decades in the intelligence agencies — specializing in psyops, responsible for taking down regimes, like the USSR. He worked for the Ford, Carter, Reagan and George H. W. Bush administrations.

In an interview with Alex Jones yesterday, the good Dr. assuaged Trump supporters, saying with certainty the government intelligence agencies were very much supportive of Trump and that the media and the left were impotent children, lashing out because they failed — equating their emotional response to feckless rage. Amongst many things mentioned, he said the Trump administration will be run much differently than previous administrations — because Trump is a businessman and his cabinet are filled with highly competent, intelligent, people, who’ve presided over large organizations and know how to operate.

Because he’s a highly trained and a purposeful psyops operator, everything about his presentation, from the cadence of his voice to his clothes, is staged. Fascinating to watch.

Here’s a snippet. Full video below.

Dr. @StevePieczenik on democrats "they're ineffectual, they've been aced out, eviscerated. pic.twitter.com/iDcYCExrdf

— The_Real_Fly (@The_Real_Fly) February 16, 2017

PewdiePie used to do videos about video games, luring 53 million youngsters to subscribe to his channel — making it the biggest channel on Youtube ever, by a very large margin.

Recently, he’s been dropping redpills on his subs, discussing media hypocrisy, with a slight conservative bent. He did a comedy video about Hitler and the result was manufactured outrage, spawned by a Wall Street Journal article and subsequent cancellation of a deal he had with Disney.

Here’s the lesson gleaned from this episode of more main stream media FAKE NEWS: young people are getting pissed off by this and have taken to the internets to vent their rage.

My son, who is 20, sent this to me.

I had a bad day in the market, in spite of the triple digits gains. I got my balls boxed in by $TECK, $UEC and $URG. Essentially, none of my stocks went up; but I was okay with that shocking underperformance, as I kept myself quite busy — chained to the laptop taking in all of the political hand-wringing.

Just 62% of stocks were higher and I, as is my right bound by the blood of my defeated enemies, added to an already over bloated portfolio of Trumpian themed stocks — buying up shares of $CLF.

Effortlessly, I waltz into the middle of a nuclear detonation — dressed to the nines, gin martini in tow, in search for greatness.

Often times the supreme feeling of ecstasy escapes me, maligned by a perfidious doom cast by failed trade, a missed opportunity, or an allocation designed to be burned in hell. I’ve been trading in these god damned markets all of my life — ever since the age of 10. I was both punching people in the face, whilst researching PE ratios by middle school. My fervor and passion for finance has never faltered and still, to this very day, believe that it is my birthright to bestow my god given gifts of financial prowess upon the masses. If unable to do that, I might as well take a year off to write a book about the whole ordeal.

Either way, I find the aspect of risk and investment to be intoxicating, only now betwixt by the ongoings at the White House. There is nothing more important than the outright treason being perpetrated by rogue elements of our intelligence agencies. The humorous treachery in all this is they’re, in fact, trying to accuse Trump of the very thing they’re doing — by cobbling together Russian spy novels into news articles.

They view themselves as ‘permanent government’, whereas the President is merely a guest, someone to be used as a public mouthpiece, or beguile the public to succor their superficial needs. I’ve never heard of such blatant disregard for the executive branch — people calling him a fascist, yet behaving like, err, fascists. The hypocrisy is rich with irony. The stench of corrosion from years of corruption has reached an ebb tide. The people are no longer fooled by this jingoism being disguised as patriotism.

Jesus fucking Christ how cucked can this country get? Listen to me, the CEO of Under Armour made a proper and polite statement about the President of the United States, someone he wished to influence in order to help his company flourish, as opposed to deriding him and getting nothing but anguish out of the relationship.

Here were Kevin Plank’s god awful comments, ‘praising Trump.’

The result? Fucking lunacy. Leftards have boycotted the brand, calling on Stephen Curry to pull out of his very lucrative deal with them (~$4m per annum).

After hearing Plank make comments that didn’t include calling Trump a fascist rapist orange pig, which would’ve been welcomed and regaled by all on the left as appropriate comments from the ‘resistance’, Curry spent a whole day trying to hash out what in the actual fuck was going on at UA, calling Trump an ‘ass’ in the process.

“I spent all day yesterday on the phone,” Curry said, “with countless people at Under Armour, countless people in Kevin Plank’s camp, my team, trying to understand what was going on and where everybody stood on the issue. Based off the release that KP sent out this morning, and what he told me last night, that’s the Under Armour that I know. That’s the brand I know he’s built and one that, as of Wednesday afternoon, is something that I’m standing on.”

Fast forward to today, Sam Poser from Susquehanna is downgrading $UAA now, following the stock already declining by half over the past six months — because MUH ‘praising Trump.’ One of the major set backs for the company, according to Poser, were the prospects of a burgeoning ‘urban brand’ — due to Trump’s unpopularity amongst black people.

Plank’s pro-Trump commentary makes it “nearly impossible to effectively build a cool urban lifestyle brand in the foreseeable future,” Poser said in a report. He also cut his stock-price target to $14 from $24, putting him at the low end of Wall Street peers.

“At this point we don’t believe Under Armour is in danger of losing Steph Curry,” Poser said. “However, it simply cannot be good for business if the face of Under Armour spoke out so pointedly against the CEO’s comments. Other Under Armour brand athletes such as Dwayne ‘The Rock’ Johnson and Misty Copeland have also spoken out against Mr. Plank’s comments.”

Poser compared the incident to a gaffe by Lululemon Athletica Inc. in 2013.

In responding to concerns about yoga-pant pilling, founder Chip Wilson said the problem was the bodies of some customers. “Some women’s bodies just actually don’t work,” he said on Bloomberg Television. “It’s about the rubbing through the thighs.”

That incident led to a “strike” by some Lululemon customers, Poser said. And the stock price went from $68 to $46 in a few months.

In other words, Poser is comparing Plank merely suggesting that Trump is an asset to America because of his business acumen, to the retarded CEO of $LULU casting out a large part of his customer base by fat shaming them.

Are you enjoying this new perverted version of America and democracy?

I’d be remiss if I didn’t mention Sam Poser, was in fact, a disgusting fat man, with the likeness of a middle earth monster.

This is the narrative Trump is likely to pursue. Instead of addressing the Flynn contacts with Russia, he will attack the mode by which they were discovered, trying to winnow out the bad actors. This is likely to result in even more acrimony, more leaks, and a dysfunctionally running government.

Political bias aside, I think it’s fair to say there is a civil war taking place inside the government, with two sides diabolically opposed to one another — working towards destruction, not unity.

We can’t all get our way, now can we Sally? I see she’s from Brooklyn, just like me. The only difference is, I grew up there, pre-gentrification era, when the real estate prices were low and the crime was high.

Why is this libtard and CNN commentator relevant? After examining these people closely, like lab rats, over the past year, I think it’s fair to say she represents a very large portion of the illiberal left — people who’d gladly trade freedom and democracy to placate their emotionally unstable minds.

This is her plan.

Straightforward from here:
1. Impeach Trump & Pence
2. Constitutional crisis
3. Call special election
4. Ryan v Clinton
5. President Clinton

— Sally Kohn (@sallykohn) February 15, 2017

She’s also on record, comically fucking herself into a labyrinth of oxymoronism.

The double I double S issued their report on military capabilities around the world yesterday and declared that China, the one and true threat to American hegemony, is near parity in air dominance. While the lot of you are harangued over Russia’s rusted battleships, the fucking Chinese are hacking away like little dog killers — without a peep out of our ‘intelligence agencies.’ They’re building islands in the middle of the ocean — locking in strategic fisheries and trade routes, all the while the media transfixes itself over MUH RUSSIANS.

Source: RT

“We now judge that in some capability areas, particularly in the air domain, China appears to be reaching near-parity with the West. Also Beijing is now beginning to offer for export some of its modern military systems,” he told the audience.

One particular weapon the institute sees as a possible threat is the PL-10 short-range air-to-air missile, which “only a handful of leading airspace nations are able to develop,” according to Chipman.

Not only does it have superb homing capabilities and poses a threat to Western aircraft in a hypothetical armed conflict with China, Beijing also offers it for export, which would “complicate the operations of any Western air force” anywhere it proliferates, he said.

Another example is a long-range air-to-air missile that was noticed in a photo of a Chinese Su-27 derivative last year. The missile may be a two-stage weapon with a range of 300km, similar in capabilities to the creation of Russian defense producer Novator, known variously as the KS-172, K-100, and AAM-L.

“When it enters service, this new system will hold at risk large high-value targets like tankers and AWACS aircraft, platforms that traditionally would safely loiter outside the range of current air-to-air weapons,” Chipman warned.

He said that China’s continued military modernization and its new willingness to export domestically-designed advanced military systems mark China as “the single most important driver for the US defense deployments.”

“China’s military progress highlights that Western dominance in the field of advanced weapons systems can no longer be taken for granted,” Chipman warned. “An emerging threat for deployed Western forces is that with China looking to sell more abroad, they may confront more advanced military systems in more places, and operated by a broader range of adversaries.”

So how did China go from a country of bicycle riding farmers to a nation able to hit a tanker from 300km away? Well, the answer is simple. Many of you are too young to remember this, so I’ll remind you.

Bill Clinton did it.

No, for real, he really gave them our MIRV missile technology.

Then there was Chinagate.

More reading behind the head of Loral and Clinton.

But you don’t want to read anything. Keep on believing that the China magically attained all of this high tech weaponry on their own.

I feel like I’m eating until an eventual stomach explosion — sheer gluttony on a grotesque scale. Truth be told, I really don’t give a fuck. I drive in a car without brakes, having to crash into things in order to slow it down. So pardon my impertinence as I disclose the fact that I added to my $CLF position to 30% of my assets — upping net exposure to this runaway train to 160%.

Say what you want about last year’s missed opportunities, I nailed the collapse of Jan-March like no one else and had only misjudged the market’s reaction to a Trump win, which I thought would hurt stocks. And no one called the plunge in yields and subsequent rally in bonds like I did.

Well, well, well, here we are now and I’m driving fucking rail spikes through your head — crushing the market with animalistic violence.

In short, I bought more $CLF.

There’s a risk off tinge to today’s flair. Morons beset with underperformance are piling back into REITs and fucking airplane stocks today — selling off perfectly reasonable great commodity stocks — because MUH rotation.

Ugly misfits who sit at home all day eating johnny cakes are selling the nukes, aluminum, zinc and copper stocks, while jimmying their way into department stores. Need I say more?

While it’s true, markets are higher for the day — there’s nothing remotely pleasant about this gypsy tape.

Bulltards are merely exhibiting a bit of lassitude here after an energetic run higher.

Instead of getting downcast by this insipid display of cognitive dissonance, I’ll, invariably, work my way towards expanding my market exposure to 200% from the present 150% — becoming the demiurge of my existence here on this forsaken prison of dirt and people.

More on this later.