UK Labour leader says he’ll invest in former mining towns and steel industry

By analyst

By Andrew Topf

Jeremy Corbyn, whose Labour Party came second in the 2017 UK general election, has reached out to communities hit hard by the downtown in the coal and steel industries.

The Labour Party leader said a future Labour government would invest in former mining areas blighted by poverty, while also spending to promote renewable energy.

“I would have wanted us to intervene immediately on SSI Redcar when the steel industry was in a crisis at that time.”: Labour leader Jeremy Corbyn

“It’s about investment in new industries. And so for example, I want to see a much bigger renewable sector,” Corbyn was quoted in Wales Online. In August Corbyn was seen backing support workers at a non-profit in Wales who went on strike over cuts to their pay.

Corbyn also said a Labour Government would be ready to invest in the steel industry, and challenged the argument that EU rules on “state aid” made it impossible to intervene, according to an interview with the BBC.

“I would have wanted us to intervene immediately on SSI Redcar when the steel industry was in a crisis at that time. The Government claimed there were issues of state aid. We disputed that at the time. But I would also want to say that we would be able to invest in industries,” Corbyn said during the BBC interview.

The Redcar iron and steel plant in Teesside, in northeast England, closed in 2015, throwing 3,000 people out of work. It was once one of the largest steelmaking facilities in Europe.

Corbyn also claimed that Labour would reverse a recent decision by the Conservative-led government to scrap electrification of the Great Western Railway between Swansea and Cardiff, while his Shadow Secretary of State for Business, Energy and Industrial Strategy, stressed Labour support for the proposed Swansea Bay tidal lagoon. A decision on the £1.3bn tidal power project is in the hands of the Conservative government. Swansea Bay is stuck in limbo because it’s backers want a guaranteed price for the electricity it will produce, according to Wales Online.

Meanwhile the UK coal industry is on it knees due to continued decline in coal use throughout the British Isles.

In 2015 Britain’s last underground coal miner, UK Coal Holdings, shut down its remaining underground operation – the Kellingley Colliery in northern England – marking the end of underground coal mining, an industry that helped make Britain an industrial power and top exporter.

Over 20% of the nation’s energy needs are still met by coal, which is mostly imported. In August UK coal use dropped to a 135-year low. The UK government has said it plans to cut coal use entirely by shutting down all coal-fired plants by 2025.

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Source:: Infomine

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Ryan Fitzwater Explains Price Inflation and Deflation

By Samuel Taube

Transcript:
Samuel Taube: Joining us today again is Ryan Fitzwater, the Director of Research for The Oxford Club, and today we’re talking about inflation and deflation. Ryan, thanks for joining us.

Ryan Fitzwater: It’s great to be here again, Sam.

ST: So… what is inflation, and what is deflation? And also, what causes both of those phenomena?

RF: Inflation is simply when prices are rising, and deflation is when prices are falling. You can have both of these at the same time going on in various asset classes.

And when they go to their extremes, they’re bad for the economy in many ways.

So first let’s start with inflation. When it gets out of control, when it gets crazy, it’s called hyperinflation.

ST: Right.

RF: And that’s when prices rise, like, 50% in a month. That’s rare, but there have been cases of that in the past.

On the other end of the scale is asset inflation. This is happening all the time. For example, oil and gas prices spike every year in the spring. And that’s normally because commodity traders are bidding up oil prices because people are going to drive more in the summer…

ST: Right, and the refineries have seasonal trends of their own as well.

RF: Exactly. So that’s asset inflation right there. That’s rising prices. So you can understand inflation; you’ve seen it before. You’ve seen it at the supermarket. If there’s a shortage of oranges, your orange juice might cost more. That’s asset inflation.

On the other side, there’s deflation. Deflation is when prices are falling. It can be hard to spot, because they don’t always fall uniformly. With deflation, you can have inflation in other parts of the economy.

Let’s take oil and gas again – there’s deflationary pressures there. When all this oil and gas came online due to the shale revolution, that was deflationary pressure on prices because there was more supply and the same amount of demand.

ST: Right.

RF: So that is a deflationary pressure right there. And that’s kind of like the basic explanation of those two.

ST: I see. And it strikes me that oil and gas are good examples of how deflation can have negative consequences. At a surface level, it might seem like lower prices are a good thing. But obviously we’ve seen a lot of energy companies really get hurt by this.

RF: Right. It’s good for one person; it’s bad for another. If you’re an airliner, you want to see oil prices go down. It’s going to help your bottom line.

Versus the oil company, you’re selling oil at $100, and now suddenly you have to sell it at $40. It’s going to change your revenue stream; it’s going to change your bottom line and your profit margins.

ST: I see. I think most people are familiar with some examples of hyperinflation – you’ve got Zimbabwe in the last couple decades, Venezuela right now, Germany after World War I – but what’s an example of a country that has suffered (or is suffering) from deflation?

RF: So hyperinflation is really bad… but …read more

Source:: Investment You

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Jack Chan’s Weekly Precious Metals Update

$BPGOLD

Source: Jack Chan for Streetwise Reports 09/24/2017

Technical analyst Jack Chan charts the latest moves in the gold and silver markets.

Our proprietary cycle indicator is up.

Chan2092417.png

Gold sector is on a long-term buy signal.

Long-term signals can last for months and years and are more suitable for investors holding for long term.

Chan3092417.png

Gold sector is on a short-term sell signal.

Short-term signals can last for days and weeks, and are more suitable for traders.

Chan4032417.png

Speculation favors overall higher gold prices.

Chan5092417.png

GLD is testing the breakout point which was resistance and now support.

Chan6092417.png

Silver is on a long-term buy signal.

Chan7092417.png

SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

Chan8092417.png

Speculation favors overall higher silver prices.

Summary:
Precious metals sector is on major buy signal.
Cycle is up.
COT data is supportive for overall higher metal prices.
The current pullback is a buying opportunity for long term investors.
We are holding gold related ETFs for long term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

New Oil Zones in Canada Still Being Discovered–And They Pay Back FAST!

cardium2

By Keith Schaefer

Napoleon is credited with the saying—I would rather have my generals be lucky than good.

And that’s a good saying for Yangarra Resources (YGR-TSX), as they discovered how prolific the Lower Cardium, or “Bioturbated Zone” is in Alberta’s massive Cardium formation–all by accident.

They were drilling in the main Cardium zone above–which everyone agrees is more porous and therefore better rock–but their directional drill went too deep one time. Despite their best efforts, they could not get the drill back up into the main Cardium payzone they wanted.

So they fracked it anyway and WHOOSH! Up from the ground came a bubbling pool, as the TV song goes.

With higher pressures, better flow rates, and lower declines–Yangarra created a big improvement in the rate of return being earned from previous Cardium wells.

After a ten well drilling program targeting the Bioturbated, in June of this year Yangarra released type curve details for the play:

IP 30 Rates – 490 boe/d (80 percent oil)
IP 90 Rates – 425 boe/d (70 percent oil)
Twelve month declines – 48% on a boe basis

At US$47.50/bbl WTI pricing, Yangarra’s type curve generates a half cycle internal rate of return of 132% and suggests the wells have a payout of 10 months.

That would make those wells every bit as good as the very best parts of the Permian Basin where land prices have hit $50,000 per acre.
CEO Jim Evaskevich laughs…”Yes we got lucky but at least we knew what to do with it when we found it.”

Well, that well has (once again) rejuvenated the huge Cardium formation–the largest bearing oil formation in Canada, with over 10 billion barrels of Original Oil In Place (OOIP) and it has produced over 1.6 billion barrels in its history.

Yangarra’s success–the stock has gone from 4o cents to $3.75 in 18 months–has spurred many different junior producers to drill their horizontal legs a little deeper in the Cardium, and has (the few remaining) energy investors searching for who else could drill this slightly deeper formation.

The reason that Willesden Green and Ferrier Cardium operators had not intentionally targeted the Bioturbated Zone previously is that it is a siltstone that wasn’t thought to be favorable for fracking.

What Yangarra discovered is that the Bioturbated Zone–is extremely brittle (or at least that is the theory) and with enough pressure will crack.

Since that first surprisingly successful well Yangarra has been continuing to experiment with the best way to attack the Bioturbated.

The first few Bioturbated wells had roughly 70 frack stages and 1,000 tons of sand. The most recent wells drilled this August are two mile laterals with over 130 frack stages and 3,000 tons of sand.

The company has yet to hit the optimal well design and until the well results stop getting better you can expect them to keep pushing forward with more frack stages and more sand.

The Bioturbated In The Cardium – Everyone Is Doing It

Yangarra had been operating in the Cardium for seven years and hadn’t tried drilling a well into the Bioturbated.

The company …read more

Source:: Keith Schaefer

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The Future of Legal Cannabis

legal cannabis 0 1

By Anthony Summers

The cannabis market is still young and faces many legal hurdles. But that hasn’t stopped the money from rolling in…

Last year, legal cannabis spending reached $6.7 billion in North America – a 30% increase over the previous year’s sales.

That figure is expected to rise another 22% this year to about $8.2 billion. And by 2018, cannabis spending should top $11 billion.

That growth is being driven by a wave of legalization initiatives that have opened up new markets for the budding industry.

Eight states and Washington, D.C., have legalized the recreational use of cannabis. And 29 states have legalized medical cannabis use.

Though the industry is gaining momentum, a major roadblock remains…

Cannabis is still illegal on a federal level.

Under the Controlled Substances Act of 1970, cannabis is classified as a Schedule 1 substance, putting it in the same category as heroin and LSD.

However, there’s a debate over the validity of this classification. In fact, new legislation was recently introduced that would effectively “reschedule” cannabis as a Schedule 3 substance.

That would put it in the same category that contains combination products such as Vicodin and Tylenol with codeine, which are commonly used under medical supervision to treat pain.

Of course, some advocates want to go further and legalize it across the board. But until that happens, most cannabis spending will continue to take place in the shadows…

Legal cannabis spending accounted for only 13% of the overall cannabis market in 2016. When you include the illegal cannabis market, total spending was actually a whopping $53.3 billion.

That means the illegal market is SIX times larger than the legal market is. That’s a market ripe for expansion when, not if, cannabis is fully legalized.

But this brings up an important question…

Just how large is the medical cannabis market?

[iu-adbox]
The Future of Medical Cannabis
Many people think the marijuana industry is driven by hippies and college students. However, most of the legal sales so far are for medical use.

In 2016, recreational use accounted for just one-third of spending. Medical use accounted for the rest.

Cannabis-based treatments are often used to treat a wide range of conditions, including back pain, sleeping disorders, glaucoma and depression.

Cannabis can also be used to treat multiple sclerosis.

GW Pharmaceuticals (Nasdaq: GWPH) is at the forefront of plant-based cannabinoid treatments for neurological conditions. Its flagship drug, Sativex, treats the spasticity symptoms of multiple sclerosis.

The drug has already been commercially licensed in 16 countries outside the United States and has regulatory approval in an additional 12 countries.

Another one of GW’s cannabis-based drugs, Epidiolex, is designed to treat Lennox-Gastaut syndrome and Dravet syndrome – two rare forms of epilepsy. And so far, it’s been proven to drastically reduce seizures in patients, compared with the results from those taking a placebo.

But these treatments reflect a small portion of the medical cannabis market.

According to the market research firm New Frontier Data, North American sales for the medical cannabis market alone will reach $24.5 billion by 2025.

Last year, the regional medical cannabis market raked in about $4.9 billion.

That means this market is set to grow …read more

Source:: Investment You

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Weekend Show – Sat 23 Sep, 2017

By Cory Currencies, Gold, and Politics… What more could you want!

Download audio file (0923-KE-Report-Weekend-Show-.mp3)

This was a busy week for me attending the Beaver Creek conference. It was hands down one of the best conferences I have attended in terms of meeting with high quality companies. I had over 30 meetings in 2 and a half days. I will be introducing the companies over the next few weeks. Please let me know your thoughts.

On this week’s show we look at the recent Fed statement and spend some time looking at currencies. We also have Byron King share his thoughts on the resource sector. We hope you all enjoy the show this week! Thanks for taking time to listen in and share your thoughts!

Segment 1 & 2: Chief Market Analysts for the Lindsey Group Peter Boockvar kicks off the first 2 segments of the show. We discuss the Fed statement this week, the recent Euro strength, potential tax reform, and where he thinks a good place for your invests lies.
Segment 3: A new guest Jamie Johnson, founder and editor of NoBSFXTrading.com looks at the charts for the Pound, Japanese Yen, and Euro.

Click here to visit Jamie’s website – NoBSFXTrading.com

Segment 4: Byron King shares how he balances investing in exploration, development, and production companies. Plus some comments on companies.
Segment 5: Best selling conservative author Craig Shirley joins us discussing his books and the conservative movement in America.
Segment 6: We continue our discussion with best selling conservative author Craig Shirley.
Segment 7: We discuss federal governments attitude toward to mining industry in America with Jeff Pontius.
Segment 8: We discuss an organization called FerviamUSA.Org which offers a Christian view on improving our country.

Download audio file (0923-1-1.mp3)

Download audio file (0923-1-2.mp3)

Download audio file (0923-1-3.mp3)

Download audio file (0923-1-4.mp3)

Download audio file (0923-2-1.mp3)

Download audio file (0923-2-2.mp3)

Download audio file (0923-2-3.mp3)

Download audio file (0923-2-4.mp3)

…read more

Source:: The Korelin Economics Report

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The Morgan Report’s Weekly Perspective with David Morgan

By David Morgan

The Morgan Report’s Weekly Perspective | http://www.themorganreport.com

The Morgan Report’s Weekly Perspective is our free e-newsletter. Our free e-newsletter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

Join our Free weekly e-letter…
http://www.themorganreport.com/joinfreelist

I’ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors.

The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection.

Thus was born The Morgan Report – since then we’ve helped 11,000-plus members scattered over the globe in every continent and over 100,000+ e-newsletter subscribers have read our weekly e-newsletter — This Week’s View from The Morgan Report.

Through our publication, The Morgan Report, we provide you with ways to achieve greater financial security and wealth in all sorts of environments.

Learn more and become an insider for The Morgan Report, click link below…
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Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining your Free Report. Just enter your first name, your primary email address and click the Get Special Report button below.

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Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!
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The post The Morgan Report’s Weekly Perspective with David Morgan appeared first on The Morgan Report Blog.

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Source:: david morgan

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America Is Going Broke… and Nobody Cares

By Bill Bonner

This post America Is Going Broke… and Nobody Cares appeared first on Daily Reckoning.

Last week, the plot did not so much thicken as congeal.

There’s no changing it now — the cameras are rolling… the costumes are on… and everyone knows his lines.

President Trump went further in becoming the first president independent of either major political party in American history.

After having sided with the Democrats on the debt ceiling, he went back to the swamp to resolve the “Dreamer” issue — the 800,000 children who arrived in the U.S. as undocumented migrants and were allowed to temporarily stay legally in the country.

Then, over the weekend, it was reported that the administration wanted to get back on the Paris climate change agreement bandwagon.

The White House denies it, but it’s now clear that Mr. Trump aims to be a whole lot less disruptive than he promised to be.

And now, with the floodgates open, the U.S. national debt has surged over $20 trillion.

Of course, we don’t worry about debt anymore. That is sooo 20th century. This is the 21st century. Debt doesn’t matter.

What seems to matter are the more symbolic issues. The Dreamers, for example.

It was okay for the president to betray conservatives on the money issues… but let him agree to offer refuge to hundreds of thousands of migrant children… and “conservatives” are up in arms.

It is further proof — if any were needed — that this comedy is going to turn into a farce… and end as a tragedy.

We’re going broke… and no one cares. Certainly, we don’t care. People get what they deserve.

Our job is only to try to understand what it is that they deserve… to anticipate it… and make sure we don’t get it, too!

Last Friday, we went to Paris to meet with Jim Rickards.

The ex-general counsel for hedge fund Long-Term Capital Management, CIA advisor, best-selling financial author, and Wall Street veteran told us that we are too naïve.

A major crisis is coming, he says, worse than 2007.

It’s coming on its own accord — a natural and inevitable consequence of the feds’ meddling. According to Jim, the authorities are actually looking forward to it… planning for it… and helping to cause it.

On that last point, we have no doubt.

Their ham-fisted, pigheaded program is bound to lead to a crisis. Specifically, the problem that caused the crisis of 2007 — too much debt — was not resolved; it was made worse.

The Fed, confronted with a debt crisis of its own making, did the only thing it could do — it lowered interest rates to encourage more borrowing. Now, there is more debt than ever. And the same people who caused the crisis are still running the banks, the regulatory agencies, the corporations, and all the other institutions that made the crisis possible.

Why were none of the problems corrected? We attribute this to simple self-interest: The insiders live on debt. Of course, they are always going to want more of it. But this is more than a …read more

Source:: Daily Reckoning feed

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Janet Yellen’s 78-Month Plan for the National Monetary Policy of the United States

By MN Gordon

Past the Point of No Return

Adventures in depravity are nearly always confronted with the unpleasant reality that stopping the degeneracy is much more difficult than starting it. This realization, and the unsettling feeling that comes with it, usually surfaces just after passing the point of no return. That’s when the cucumber has pickled over and the prospect of turning back is no longer an option.

Depravity and bedlam through the ages. The blue barge of perdition in the lower middle ferries the depraved and degenerate to their final destination, a small slice of which can be glimpsed above… [PT]

In late November 2008, Federal Reserve Chairman Ben Bernanke put in place a fait accompli. But he didn’t recognize it at the time. For he was blinded by his myopic prejudices.

Bernanke, a self-fancied Great Depression history buff with the highest academic credentials, gazed back 80 years, observed several credit market parallels, and then made a preconceived diagnosis. After that, he picked up his copy of A Monetary History of the United States by Milton Friedman and Anna Schwartz, turned to the chapter on the Great Depression, and got to work expanding the Fed’s balance sheet.

Now here is something all those “Great Depression experts” always neglect to mention: the Fed’s holdings of government securities expanded my more than 400% between late 1929 and early 1933. Friedman’s often repeated assertion that the Fed “didn’t pump enough” in the early 1930s – which is held up as the gospel truth by nearly everyone – is simply untrue. It is true that the money supply collapsed anyway – but not because the Fed didn’t try to pump it up. Many contingent circumstances mitigated against money supply expansion: too many banks went bankrupt, taking all their uncovered deposit money to money heaven, as there was no FDIC insurance; only 50% of all banks were even members of the Federal Reserve system; no-one wanted to borrow or lend in view of the massive economic contraction and the Hoover administration’s ill-conceived interventionism. We can also tentatively conclude that the economy’s pool of real funding was under great pressure, which was exacerbated as a result of the trade war triggered by the protectionist Smoot-Hawley tariff enacted in June 1930. The collapse in international trade and investment meant that the pool of savings of the rest of the globe was no longer accessible. [PT]

Bernanke’s dirty deed commenced with the purchase of $600 billion in mortgage-backed securities, using digital monetary credits conjured up from thin air. By March 2009, he’d run up the Fed’s balance sheet from $900 billion to $1.75 trillion. Then, over the next five years, he ballooned it out to $4.5 trillion.

All the while, Bernanke flattered his ego with platitudes that he was preventing Great Depression II. Did it ever occur to him he was merely postponing a much-needed financial liquidation and rebalancing? Did he comprehend that his actions were distorting the economy further and setting it up for an even greater bust?

Source:: Acting Man

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