Saturday, March 30, 2013

Cyprus Changed Everything, How To Safeguard Your Money

This is a must-read article on counterparty and solvency risk.  What's safe is safe--until it isn't safe anymore.

Sorry, Mates, Strictly Business: Australia Wants To Cut Out US Dollar In Trade With China

Not only are US unfriendlies moving away from the USDollar, but so are America's allies.  They see what is going on with Fed monetary policies.  So should the American public.

On Behaving Badly

Betray Your Bank Before Your Bank Betrays You

Visualizing 193 Years Of Currency Regimes & Crises

As illustrated by this chart, currency wars have been and will continue to shape global monetary policies over the last two centuries.  The beneficiary is a rising price of gold, while its status as a currency of last resort continues unabated--for over 6000 years.

The Chess Game of Capital Controls

Jim Sinclair on "Getting Out of the System"

Dear CIGAs,
We will expand on this over time, but you are “out of the system” if:
1. Your equities are held in certificate form.
2. You have no Federal retirement funds.
3. You have no CDs and investments in bonds.
4. You have modest money deposited among selected BRICs countries.
5. You store your own precious metals.
6. You have no mortgage obligations.
7. You keep cash on hand for 6 months expenses.
8. You have no consumer debt at all.
9. You have a small hobby farm for protein and veggies outside of where you are living with no mortgage debt, set up green.
10. You have a gas, diesel or electric car with high fuel mileage for the farm.
11. You have a generator with large fuel capacity for the farm.
12. You do not live in a major metropolitan area.
- Jim Sinclair

Friday, March 29, 2013

Senior SAC Trader Arrested, Given Perp Walk

Another slap on the wrist is forthcoming, with the Big Kahuna still untouchable.  I wonder how much a get-out-jail-free card is worth these days for hedgies.

Resolving Globally Active, Systemically Important, Financial Institutions Federal Deposit Insurance Corporation and the Bank of England

The $64 trillion question is who are the "unsecured creditors"?  If they are depositors over the guaranteed limits, expect corporations and individuals to park their money elsewhere.

Wednesday, March 27, 2013

Guest Post: Whom To Believe On Gold: Central Banks Or Bloomberg?

A sane person ought to consider these important lessons

Marc Faber: Expect Market Correction

Cyprus & Why Investors Must Be Careful Not To Get Wiped Out

China, Brazil sign trade, currency deal ahead of BRICS summit

This is more evidence that the reserve currency status of the USDollar is dissipating.

Cyprus, Money Velocity & A Potential Inflationary Holocaust

Cyprus Debacle Has Turned Into A Disaster For The West

Nigel Farage - Major European Bank Runs Now Taking Place

Cyprus, Massive Global Debt, Derivatives & The End Game

Sinclair - Cyprus, Gold, Russia & A New Monetary System

Friday, March 22, 2013

Time To Plan For The Worst Rather Than Hope For The Best

Gold manipulation, Part 3: “The systemic risk of gold manipulation”

CNBC - HSBC - GLD - Public Relations Backfire

Texas considers repatriating university pension fund's gold

This is happening as I predicted here earlier this year and here in 2011.  A couple years ago, Kyle Bass initiated UTIMCO's sales of the GLD ETF, and purchase of physical gold bullion to usurp counterparty risk.  I applauded the move, but I suggested UTIMCO didn't go far enough, as the gold bars reside in New York, not in Austin, TX.

As it stands, Texas Governor Rick Perry and the legislature are seeking repatriation of Texas' gold.  Smart move, y'all.

Former US Treasury Official - Threats, Cyprus & Massive Crisis

The Reality Is The Financial System Could Fail At Any Time

Union: One Survived; One May Not

Thursday, March 21, 2013

Celente - The Financial System Is Collapsing Before Our Eyes

Sinclair - Lagarde’s IMF Disaster Forces Bernanke Out Of Fed

Ron Paul's End the Fed campaign may come into fruition sooner than later.

Anybody find it coincidental that former IMF Managing Director Dominique Strauss-Kahn's character was assassinated with trumped up rape charges, and now current IMF MD Christine LaGarde is similarly being investigated for alleged illegal payoffs?  Being a central banker isn't what it used to be, and Ben Bernanke is already considering exit strategies.

US Begins Regulating BitCoin, Will Apply "Money Laundering" Rules To Virtual Transactions

I saw this coming a mile away.  It was only a matter of time before monetary authorities would target alternative currencies like BitCoin.  They've been bombing physical gold and silver for decades, so crushing virtual currencies was a natural progression.  Good luck, BitCoin.  You're going to need it.

Why Is The World Economy Doomed? The Global Financial Pyramid Scheme By The Numbers

Cyprus Crisis Escalates - Banks May Remain Closed For Weeks

Cyprus scrambles to avert meltdown, EU threatens cutoff

Is The United States The Next Cyprus?

Wednesday, March 20, 2013

Eagle Sales Soar Even as Metal Prices Fall

Do Western Central Banks Have Any Gold Left??? Part II

Is Cyprus deposit levy the first sign of widespread wealth tax?

Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR

Correlation Is Not Causation But...

US government wants six-year olds to shoulder the Social Security shortfall

Japanese Exports Drop More Than Expected Smashing Adj. Trade Balance To New Record Low

In the "we saw it coming a mile away" category, Japan, Inc. is sinking into the abyss as exports plummet.

'Europe's Citizens Now Have to Fear for Their Money'

This guy Bofinger has a lot of balls.  I'll leave it at that.

How Europe stumbled into scheme to punish Cyprus savers

Ron Paul, "Gold is the ultimate money," Fox Business, 3/20/13

Investors Shocked & Frightened In Aftermath Of Cyprus Scare

Expect Stunning Global Expansion Of Government Theft

Sinclair - The Next Danger After Putin Crushed IMF In Cyprus

Get Your Assets out of the Banks – NOW

A friend found this very pertinent and timely suggestive article.

Tuesday, March 19, 2013

US Deposits In Perspective: $25 Billion In Insurance, $9,283 Billion In Deposits; $297,514 Billion In Derivatives
The $25 billion in touted deposit insurance is supposed to preserve and protect (granted not in their entirety) some $9,283 billion in total US deposits. A far bigger problem, however, is when one considers the "asset" side of the US banks' ledger: remember deposits are unsecured liabilities. And for US banks, sadly, over the counter derivatives represent the vast majority of "off the books" assets. According to the latest OCC quarterly report, the total derivative notional outstanding of the Top 25 holding companies is $297,514 billion, or nearly $300 trillion. In other words there are 32 times more notional derivatives than there are total deposits, while the ratio of gross derivatives to deposit insurance is a concerning 11,900-to-1.

Monday, March 18, 2013

Eurogroup Folds: Tells Cyprus To "Safeguard" Depositors Under €100,000 Euros; Angry Russians To Get Even Angrier

Former CEO Of Calpers Indicted On Financial Fraud Scheme Charges

And the hits (or $hits) just keep on comin'...and another reminder that crime does pay--as long as you work on Wall Street.

The Great Cyprus Bank Robbery by Financial Terrorists

Blackstone Crowds Housing Market as Rental Gains Slowing

Here comes another housing bust.

Sinclair - Cyprus Disaster Is Much Bigger Than Being Reported

Turk - Money Is No Longer Safe In Banks After Cyprus Theft

Sinclair - One Of The Most Important Events In History & Gold

Eric Sprott - Jim Sinclair, $11,000 Gold & Skyrocketing Silver

Former US Treasury Official - Fed Desperate To Avoid Collapse

Eric Sprott - The Current Financial System Will End In Ruin

One Of Legendary Jim Sinclair’s Boldest Predictions Ever

Key Chart As Gold, Silver & HUI To Have Massive Advances

Tuesday, March 12, 2013

Kyle Bass Warns "The 'AIG' Of The World Is Back"

“Major Catalyst” About To Send Gold & Silver Prices Surging

Japan To Hike Utility Prices By 14-19% As Inflation Surges In All The Wrong Places

The debate between inflation vs. deflation is a false choice.  This has been a running theme of mine:  with currency debasement, inflation will soar on items we need (food, energy), while deflation will materialize for things we don't need (a second car, a boat, a second home in the desert) as the economy continues to deteriorate.

David Stockman On "The Great Deformation" And The US Treasury As "The M&A Department Of Goldman Sachs"

David Stockman bashes the GOP and Democrats with equal aplomb.

In major policy shift, scores of FDIC settlements go unannounced,0,5882355,full.story

Silver To Eclipse $100 On Skyrocketing Chinese Demand

Monday, March 11, 2013

Paulson Said to Explore Puerto Rico as Home With Low Tax

Dylan Grice Explains How "Crackpot" Central Bankers Are Destroying Society

Presenting The Currence Crises, Devaluations And Regime Changes Since The Collapse Of The Gold Standard

Sense and Nonsense

Foodstamp Recipients Hit Record, Alongside Record Dow Jones And Record Debt: 20% Of Eligible Americans On EBT

Kuroda Says Bank of Japan Will Consider Buying Derivatives

End of days is looming for Japan.

The Last Laugh: Illinois Pension System Charged For Not Disclosing "Structural Underfunding"

AF removes RPA airstrike number from summary

When in doubt, re-write history.  When questioned, change the facts.  1984 is here.

Who Spends The Most Dollars Lobbying Washington, DC?

$1,000 daily price swings and $3500 gold – Sinclair’s dire predictions

Norway Fund Flees Currencies Tainted by Stimulus Addiction

The Norwegian sovereign wealth fund sees what we see:  over-indebted developed countries will continue to debase their respective currencies as far as the eye can see in a currency war with no winners.

Sinclair - Shorts Are About To Get Mauled In The Gold Market

Embry - I Believe Global Silver Stockpiles Are Now Exhausted


Technological advances (such as horizontal drilling and fracturing) have enabled natural gas and oil companies to increase production levels.  But since natural resources are finite, the increased productions rates don't automatically increase reserves--and won't extend their production lives.  In other words, production forecasts will proven to be overly optimistic.

Hence, the thesis of a renaissance in US energy production will be short-lived.  Which means our debts and deficits still have to be addressed, because energy production alone will not improve our economy in the long-term, as the cheerleaders insist.  We won't magically grow our economy from increased energy exports--because there isn't as much oil as the pundits have glowingly predicted.

Wealth Inequality in America

The secret bull market in gold

Thursday, March 7, 2013

How Many Billions Of Drug-Laundered Money Does It Take To Shut Down A Bank?
"if you're caught with an ounce of cocaine, the chances are good you're going to go to jail... for the rest of your life. But evidently, if you launder nearly a billion dollars for drug cartels and violate our international sanctions, your company pays a fine and you go home and sleep in your own bed at night - I think that's fundamentally wrong." - Elizabeth Warren

The Mexican standoff: Gold, Banxico and the Bank of England

Biggest Wealth On Planet Now Entering Gold & Silver Markets

I talked to Rick Rule at one of the Hard Assets conference.  He's definitely a gold bug, and a former Goldman Sachs guy.  If he says big money is looking to move into gold, he's not talking about Joey Six-Pack's financial advisor.

Volcker: Fed Faces Tough Job of Removing the Punch Bowl

Former Fed Chairman Paul Volcker is speaking the truth on the difficulty of the Fed reining in stimulus.  It's the politically correct speak for "QE to infinity."  He's saying it--without saying it--because he can't say it.

Nest eggs poached - 25% of Americans, in dire straits, raided their 401(k)s

Korea Joins Russia, Kazakhstan in Boosting Gold Holdings

Yes, central banks are buying gold at a record pace.  And just because George Soros is selling his GLD ETF holdings (paper gold), doesn't mean he isn't accumulating the physical metal.  This is just another head fake by the media attempting to scare weak hands out of their physical gold holdings.  Oh, and Goldman Sachs is telling clients gold will decline.  That's a contrarian signal that it's time to buy.  After all, we all know how Goldman Sachs takes care of their clients above their own proprietary trading, right?

Transcript: Attorney General Eric Holder on 'Too Big to Jail'
But I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute — if we do bring a criminal charge — it will have a negative impact on the national economy, perhaps even the world economy. I think that is a function of the fact that some of these institutions have become too large. - US Attorney General, Eric Holder

Gold bar sales in China jump twofold during Spring Festival

Public College Tuition Soars By Most Ever (Or Searching For Deflation In All The Wrong Places)
As the title, and chart, both imply, the simple reason why college tuition is up 1200% in 35 years, while healthcare fees have soared by a neat 600% or double the official cumulative inflation, is two words: "cheap credit."
The average amount that students at public colleges paid in tuition, after state and institutional grants and scholarships, climbed 8.3% last year, the biggest jump on record, according to a report based on data from all public institutions in all 50 states to be released Wednesday by the State Higher Education Executive Officers Association. Median tuition rose 4.5%.

China Threatens Currency War Retaliation, Warns Japan Against Using China As "Garbage Bin" In Race To Debase

Wednesday, March 6, 2013

Jim Sinclair - Paper Markets To Disappear As Gold War Rages

Just to give you a background on Jim Sinclair, he declared gold would be $1650 when it was under $300 ten years ago.  Think about that for a minute, and how outlandish that sounds to an untrained eye.  Lo and behold, he was right, as gold went beyond his price target all the way up to $1923 in 2011.

If you choose to dismiss it, realize that if you had $1000 of gold back then, you'd have $6000 today.  Or $1 million then would be worth $6 million today.  In other words, the appreciation scales up, and if anybody had followed his advice, they'd be in a much better place today.  Sinclair's call was not insignificant.  He talks the talk, and walks the walk.

Sinclair is now saying the next upside target is $3500 and higher, which is equally hyperbolic, right?  Not really.  A move from $280 to $1650 is huge, a six-fold rise.  Getting to $3500 from here is merely a double.  And the Fed is printing many more trillions today than they did back in 2002.  That price target, as crazy as it sounds initially, is not far-fetched at all when looking through the prism of the trillions in currency units the world's central banks are creating.  In a currency war, the race to debase is extremely constructive for the price of gold.

Embry - Massive Silver Short Positions To Force COMEX Default

Gold Liquidation Now Resembles Panic & Collapse Of 2008

Monday, March 4, 2013

Understanding Failed Policies: Wealth Effect, Wage Effect, Poverty Effect

Meet Mary Jo White: The Next SEC Chief and a Guaranteed Wall Street Patsy

Eric Sprott: Central Bankers Are Gaming Gold

James Turk - The Single Most Important Chart For All Of 2013

Celente - Gold, Silver & The Frightening “Next Great Trend”

12 Things That Just Happened That Show The Next Wave Of The Economic Collapse Is Almost Here

Zuma warns west’s ‘colonial’ corporates

Good for Africa--and China.  Bad for America and Europe.

China Can Now Buy World’s Gold Reserves Twice Over

Sunday, March 3, 2013

A detailed look at Bank of England gold

Watch Gold & Silver As Central Planners Face Herculean Task

How To Prepare For The Difficult Years Ahead

In China Clean Air Sells At $0.80 Per Breath

Total Debt + Equity = USA Bubble #1

Personal Incomes & The Decline Of The American Saver

First Horse(meat) Trading, Now 59% Of "Tuna" Sold In The U.S. Isn’t Tuna

Why Is JPMorgan's Gold Vault, The Largest In The World, Located Next To The New York Fed?

After reading this article connecting JPMorgan's gold vaults to the New York Fed's gold vaults, it doesn't take much to connect the dots that re-hypothecation of sovereign gold is a clear and present danger.  He who repatriates gold first, repatriates best.

Friday, March 1, 2013

The Looming Gold Production Cliff That Will Drive Prices Higher

Hathaway - The Most Important Gold Chart You Will Ever See

Jim Sinclair - We Are Witnessing A Historic Low In Gold

Capital Controls, $5,000/oz Gold and Self-Directed Retirement Accounts

The Fed Chairman's Inconvenient Quotes

I'm not endorsing the firm in this video--in fact, I've never heard of them until now.  I'm just posting it since I've been telling folks how wrong the Fed Chairman has been in his predictions for years.  Glad to see some mainstream money managers are seeing the light.

Stanley Druckenmiller - "I See a Storm Coming..."


Western World’s Perpetual Motion Ponzi Scheme To Collapse

Spoken like a true Swiss non-banker.