Wednesday, July 31, 2013

Keiser Report: No jail for banksters in real world Monopoly

Watch the last 13 minutes of this 26-minute video to get a better feel for gold backwardation, negative GOFO rates, fractional gold reserve banking, a commercial default, and difference between paper gold and physical bullion.

The full guide to Nazi gold and currency war

Do skeptics still think gold is a "barbarous relic"?  Think again.  In many instances, gold represented the difference between life and death of a family--and a sovereign country.

Countering devaluation: Govt slaps temporary ban on gold import

The Indian and Pakistani governments are ensuring the impoverishment of their citizens by restricting and banning gold imports.  The masses' purchasing power will be slaughtered when their respective sovereign currencies collapse from over-printing.

The Fed’s Disaster & How This Will Impact Gold

Fed Moves To Create Frightening Hyperinflation In The U.S.

Why QE Can Never End

American Automobile Glut? Unsold Cars Are Piling Up

As predicted here, a glut in automobiles and housing will cap economic growth, despite cheerleading by the media.

OVERSTOCK.COM CEO: Steve Cohen Is Directly Responsible For Corruption That Has Cost Hundreds Of Thousands Of People Their Jobs

There is no way to say "I told you so" with dignity, so I'll just say it without:  I told you so.  Search "Deep Capture" in this blog alone: <Deep Capture>, and you will see a number of blog entries implicating Steve Cohen and his cabal of naked short-selling hedge fund cohorts, which destroyed many sound biotech companies, some of whom had promising treatments for a variety of conditions, including cancer, obesity, and diabetes.  All to obtain billions in illegal profits.  Imagine not only the job losses, but the human losses.

The Bill of Rights Shattered

XKeyscore: NSA tool collects 'nearly everything a user does on the internet'

Again, it is Snowden's accusers who are shown continually to lie about the NSA's capabilities.

Fed Sees Risk of Disinflation, Maintains Bond Buying Pace

Anybody reading my blog for any length of time is not surprised by this headline, despite jawboning to the contrary.  QE to infinity, whether it's tapering, maintaining, or accelerating. QE--it's the gift that keeps on giving.   Or the heroin pusher who keeps on pushing.

Ending QE would be the correct, if painful solution, but denying the addict its daily dose of heroin would induce withdrawal coma.

It May Be Time to Buy Gold…

The Price Of Silver Is Setting Up For A Historic Run

Untangling gold at the Bank of England

What is Money?

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves,” - Norm Franz
Bitcoin, Ripple and other crypto currencies will fit in there somewhere.

David Rockefeller quote on One World

“For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as 'internationalists' and of conspiring with others around the world to build a more integrated global political and economic structure--one world, if you will. If that's the charge, I stand guilty, and I am proud of it.”

― David Rockefeller

Gold Market To See Largest Short Squeeze In Modern History

Bankers, bankers uber alles, uber alles in der welt

Bank of England refuses comment on huge discrepancy in custodial gold reports

Former British Finance Minister and Prime Minister Gordon Brown infamously sold the country's gold reserves at rock-bottom prices in the late 1990's, now dubbed derisively as "Brown's Bottom."  He essentially robbed England of its treasury, further impoverishing the country.

Now, we find out the Bank of England has again sold off the family jewels, allegedly to help engineer the massive bear raid in paper gold--only to have it backfire on them as demand for physical gold soared, to the point where there are still severe shortages almost four months later.

Apparently, the powers-that-be in London, New York, and Washington, DC underestimated the purchasing power of billions of peasants and farmers in Asia when precious metals are discounted.

England and America have been pillaged--by our own central bankers.

Introducing Ripple, a Bitcoin Copycat

Tuesday, July 30, 2013

Janet Yellen 'Only Hit the Dart Board Because Someone Moved the Board in Front of Her Dart'

This video illustrates why the status quo, academic economists, and financial media have it completely wrong.  Any housewife knows inflation is running higher than what government statistics are depicting.  It's all a part of recalculations to mask true inflation.

COMEX Registered Gold Inventory Continues To Decline

The Government "Revises" 84 Years Of Economic History This Week

Homeland Security's Future Home: A Former Mental Hospital

Think those are dollars in your wallet? Think again.

Is The Emptying Of Comex' Silver Vaults Next On The Agenda?

Silver Vault for 200 Tons Starts in Singapore as Wealthy Buy

Fed Tapering Assured As Treasury Projects 30% Slide In Annual Funding (And Monetization) Needs

Long story short, QE tapering will be temporary.  QE to infinity will resume nonetheless.

Jim Rogers: "The Whole 'Economic' World Is Artificial... It's Going To End Very Badly"

Fast-food workers in NYC stage strikes, rallies

Another strike among San Francisco Bay Area Rapid Transit (BART) workers is looming.  Now fast food workers in New York are striking.  Workers are demanding higher wages because the cost of living keeps soaring--despite official government statistics denying inflation exists.

Higher wages are the last peg in the inflation stool, because rising labor costs permeate throughout the economy.  Those who have declared inflation is dead will be be proven dead wrong.

We're already have monetary inflation.  The missing components are rising wages--and the velocity of money.  At that point, we will have consumer price inflation, and it is game over for the Fed, because they won't be able to fight inflation with rising interest rates.

Debt kills.  Absolute debt absolutely kills.

Russia follows the yellow brick road, increases gold reserves

JP Morgan Accused Of Manipulating US Energy Markets Using 8 Different Trading Strategies

Those of us from the lunatic fringe blogosphere who alleged that Blythe Masters was at the vortex of precious metals price manipulation were labeled "conspiracy theorists" several years ago.

Here is proof, as I did a quick search for "Blythe Masters" in this blog alone, and a plethora of blog entries came up.  Take a look:

The status quo apologists consistently denied that JPMorgan was manipulating markets.  "No, they are merely making markets and providing much-need liquidity" was the canned response from the talking heads on financial TV.

The smoking gun was the $6 billion loss from JPMorgan's London Whale trader.  It was a big "oops" for CEO Jamie Dimon and Masters, who heads their commodities trading desk, because they had just testified that they were flat, and did not take big directional bets on their proprietary trades.

A year later, JPMorgan is being investigated for manipulating the energy markets, Enron-style.  But hey, the gold and silver markets are so much smaller, so it's impossible for them to manipulate those markets also, right?  I mean, JPMorgan happens to be the custodian for SLV, the silver ETF trust.  It's a classic case of the wolf guarding the hen house.  Surely, Blythe's hands are clean.

After all, she does take credit for creating that wonderful financial instrument which would have plundered the financial world back to the stone age had taxpayers not bailed banks out--the credit default swap. 

“The greatest trick the devil ever played was convincing the world that he did not exist.”

Maybe, that he was a she.

By the way, notice this article was printed in Australia.  Apparently, JPMorgan and the banking cartel are off-limits for the US media.

Rick Rule - What To Expect From Gold, Silver & Mining Shares

We Are Staring At Global Collapse & A Gold & Silver Explosion

New diet drug, Belviq, targets appetite suppression in the brain

Monday, July 29, 2013

Andrew Maguire Discusses GOFO and Gold "Backwardation"

Gold Backwardation Explained

Buy Silver Now? II July 26, 2013

Goldman CEO on risk: The worst 'absolutely will happen'

This is a stunning revelation from Lloyd Blankfein, CEO of Goldman Sachs, coined the "squid vampire" by Rolling Stone's Matt Taibbi in his article The Great American Bubble Machine.

"Most risk management is really just advanced contingency planning and disciplining yourself to realize that, given enough time, very low probability events not only can happen, but they absolutely will happen," said Blankfein.

Chinese gold demand could hit 1,000 T this year-WGC

Sunday, July 28, 2013

80% Of US Adults Are Near Poverty, Rely On Welfare, Or Are Unemployed

With Gold, Don’t Miss the Top

This is a must-read summary of the decoupling of paper gold and physical gold pricing.

Future of the Dollar

This is a re-post of a must-view video of Jim Rickards back in 2009.
"When you own gold you're fighting every central bank in the world." - Jim Rickards, September 25, 2009

Second Dutch Bank to Follow ABN Amro, Close Gold Accounts!

William Kay: Purpose For Major Gold Raid Was to Prevent All Major Bullion Banks From Defaulting Like ABN Amro!

Former Ambassador Ann Wagner…Benghazi Stand Down Order Came From Obama

Keep an Eye on Gold

This post had some worthy notes on gold, but probably not earth-shattering news to gold bugs.  But scroll down to the bottom and read the interesting blurb on encrypted law enforcement radios.  A judge or someone in the witness protection program should be worried.

Saturday, July 27, 2013

Hundreds Killed In Overnight Cairo "Massacre" As 30 Million Take To The Streets

Marc Faber on shadow banking, market psychology, & the global impact of American monetary policy

Gold Smuggling Soars In India

Gee, given the Indian government is trying to suppress demand for gold by taxing the hell out of it, no one saw smuggling soaring, right?

Here’s what happens when a central bank goes bust

JPMorgan To Exit Physical Commodity Business

This appears to be a timely and convenient exit strategy for JPMorgan, given their gold depositories are running dangerously low.

IRS employee union: We don’t want Obamacare

So wait a minute:  the IRS is supposed to enforce ObamaCare--yet their own unions don't want any part of it for their own healthcare plans?  This will be a train wreck waiting to happen...

Gold is flashing a secret buy sign

Market Dominance

Do ETF outflows mean the end of the gold bull market, or just the end for paper gold?

Gold Backwardation Misinformation

Dan Norcini says gold backwardation has not occurred, although negative GOFO rates do exist.  The reason why backwardation may appear to exist is because front month futures contracts are more liquid, so real-time bids and offers are more indicative of the existence of contango or backwardation than closing prices of futures contracts in more distant months.

Friday, July 26, 2013

Sprott - We Are Seeing Unprecedented Events In Gold & Silver

Sprott's message is buy physical gold, but buy even  more physical silver.

Gold Shortage Creating Massive Problems For Bullion Banks

Eric Sprott - Physical Gold Shortage Now Reaching Extremes

COMEX Gold Inventories Plummet: Shorts May Be Forced To Cover Fast

This is another decent primer on the differences between registered and eligible gold and silver inventory at the COMEX.  Long-time readers of this blog may find it redundant, but new viewers should get a good grasp of how the COMEX operates its warehouses after reading this article.

What gold nationalization really means

The Entire Western World is “Detroit”

Thursday, July 25, 2013

Gold & Silver Continue To Climb “The Stairway To Hell”

This is great chartwork by Tom Fitzpatrick.  The take away message is that as long as the official US national debt limit ceiling continues to be raised, the price of gold (and silver) will also rise.

Keiser Report: Gold Demand in China

RT News Boston Bombing Hoax Details

Here Is Why The Price Of Gold & Silver Turned Around Today

Richard Russell on Bull Markets

“The hardest thing to do in a bull market is to take a position and then to refrain from trading.  When you trade, you're most likely to trade out of the bull market just before the next advance.  Gold has one great advantage -- you never have to worry about gold going bankrupt.  Thus, you can hold actual gold with impunity.  The best way to handle actual gold in a bull market is to accumulate --never sell, but just continue to accumulate.” - Richard Russell

Failed Gold Gamble To Burn Down Western Financial System

SAC Capital Is Indicted

Ol' "Blue Eyes" Stevie Cohen of SAC Capital was so feared on Wall Street that nobody would mention his name.  There were whispers of connections with organized crime, but much of the intimidation came from traders feared being on the other side of his trades.

Price manipulation is rampant in equities markets (any investor of biotech startups can identify the makings of a bear raid like the back of their hand), fixed-income (see LIBOR scandal), and commodities.  Meanwhile, the regulators are asleep at the wheel, either looking the other way (more likely being paid to look the other way), or too understaffed or incompetent to prosecute.

Wednesday, July 24, 2013

Dennis Gartman insists that there are no conspiracies in gold

Dennis Gartman is a mouthpiece for the Fed and bullion banks--and their surreptitious price suppression of precious metals.

Backwardation, negative GOFO and the gold price

I learned about GOFO and backwardation in 2008, prompting methodical purchasing of precious metals.  When the person in the street knows about backwardation, prices will be much higher.

“The Gold System Is Based On Trust & Trust Is Breaking Down”

Gold – I Never Have Been More Bullish!

Bankers Own the World

The Tip Of The Iceberg Of The Coming Retirement Crisis That Will Shake America To The Core

Paul Craig Roberts: By Winter Unemployment Explodes, More Foreclosures-Worse than Great Depression

Guess The World's Most Expensive City

Smugglers find channels to bypass gold import curbs

How Does America’s Middle Class Rank Globally? #27

This Is Why Gold Will Hit $10,000 & Silver Will Eclipse $500

Why Is Silver Manipulation So Absurd?

Monday, July 22, 2013

How Our Monetary System Works And Fails

Comex Must Change Its Delivery Mechanism Soon

Marc Faber (July 2013)

High-frequency trading firm Panther Energy fined in ‘spoofing’ case

This is rich--every too-big-to-fail bank on Wall Street executes high-frequency trading, including fake bids and offers to mislead market participants.  It's called the Wall Street head fake--only in its high-speed electronic format.  With all the HFT algorithms taking place, the CFTC chooses to target Panther Energy, a small fry in the big scheme of things?

What about the bigger hedge funds--or the proprietary trading operations of the big banks themselves?  Or are their armies of attorneys too cozy with the regulators?

Statism is turning America into Detroit – Ayn Rand's Starnesville come to life

The "Impossible" Healthcare Solution: Go Back to Cash

How Incremental Increases Can Lead to Systemic Collapse

Ahead Of Tomorrow's Hearing On Goldman And JPM's Commodity Cartel

Same ol', same ol':  the banks own everything.  Which means everyone payers higher prices for everything.  Surely, that is good for the economy, right?

Bo Polny: June 28, 2013, Dawn of the Next Gold Bull

I met Bo at the Jim Sinclair event in Los Angeles.  I am not in any way connected with him, nor am I endorsing his service, but he appears to have a good handle on the price movements of gold.  My only concern is he tracks GLD, which may decouple from the price of physical gold at some point.

Bo is calling the June 28 low a major secular bottom for gold.  We shall see.

Click on Image to Enlarge

David Stockman - Expect Financial Collapse & Flight To Gold

David Stockman is the former Director of the Office of Management and Budget (OMB).  He is part of the status quo that would presumably not rock the "big government" boat.  In other words, he is not a lunatic fringe blogger.  Read what he has to say about our out-of-control government finances and his opinion on gold.  Be forewarned--this is a must-read.

India's CAD, rupee fears drive RBI to crack down further on gold imports, price to rise

The Indian government is doing everything in its power to dishoard its citizens of their private gold holdings.  The false cover is that importing gold is accretive to their current account deficit, and further weakens their currency, the rupee.

It's a cover because importing gold balances out the net worth of its citizens against a backdrop of a debauched sovereign currency; hoarding hard assets does not contribute to the currency's weakness.  In fact, a central bank accumulates gold to strengthen its foreign exchange value.

The most effective way to reduce a country's current account deficit is to export more goods and services, and to reduce its over-spending.  The fact that the Indian government would impose controls and taxes on its own citizens is troubling and indicates corruption, which has been running rampant.

India is no longer a British colony, but it sure acts like it in this regard.  Kowtowing to the crooked global banking system which financializes every market sector, is not an act of a sovereign nation, but one of subservience at the expense of the masses.

Contrast that to the Chinese government, which encourages Chinese banks and citizens to convert paper currency into physical gold holdings, and one gets a sense of which country is preparing for the demise of USDollar hegemony.

Treasuries Not Safe Enough as Foreign Purchase Pace Slow

It's so obvious even Bloomberg is reporting it.  Foreign investors are shunning US Treasury bonds because they understand inflation is looming, making fixed-income assets disastrous to hold.  Finance 101: when bond yields rise, bond prices decline.

Corollary to the aforementioned axiom: when interest rates rise, the cost of borrowing rises.  The conclusion is that over-indebted nations will be insolvent, if they aren't already.

With foreign purchasing tepid, the Fed has had to step up as the buyer of last resort, via QE.  Which means the US Treasury bond market is a circular ponzi scheme.

Gold Headed To Old High, But Gains In Silver Will Be Historic,_But_Gains_In_Silver_Will_Be_Historic.html

Bernanke Confesses to not Understanding Gold

Gold: Physical Demand Vs Paper Supply

Get Ready for Rising Commodity Prices

Sunday, July 21, 2013

The Shanghai Gold Surprise

The anti-gold crowd is going to be in for a rude awakening.

Gold derivative distortions

Long story short:  when prices are manipulated in one direction, the reversal in the other direction occurs with more intensity, depending on the depth of the manipulation.  Call it the slingshot effect.

G-20 Nations Worried About Unwinding QE3

As we've posited numerous times, there will be no unwinding of QE, despite jawboning by central bankers.  Unwinding QE means markets collapse overnight.  Hence, QE to infinity will rule the day.

The Roadmap From A Gold Bottom To A Mania

FDNY Tweet on Fire at 15 Broad Street

Did A Raging Fire Burn Down JPMorgan's Gold Vault?

According to zero hedge, the answer is no.

Massive Fire JPMorgan Gold Depot – False Flag? (Video)

Saturday, July 20, 2013


A Shuffle of Aluminum, but to Banks, Pure Gold

As usual, Wall Street robs the public blind.

Avalanche of City Debt Downgrades and Eventual Bankruptcies Coming Up; Numerous Cities Bankrupt Over Pension Promises

This is depressing news on bankrupt municipalities, but it's reality.  Just like Detroit's bankruptcy, it is also inevitable.

Bernanke Passes The Buck On "Contained" Student Debt

I've always said Fed Chairman Ben Bernanke has a track record of being wrong on 100% of his forecasts.  I could flip a coin and be right 50% of the time.  But one has to TRY to be wrong 100% of the time.  In other words, he's not incompetent.  He's a trained liar.
2007 - "The subprime mess is grave but largely contained" - Ben Bernanke

2013 - "The amount of US Student Debt is large, but not particularly likely to cause macro-economic instability." - Ben Bernanke

Bernanke Ruminates On "Incomprehensible" Gold Prices

Is America's Social Contract Broken?

BLS number is BS
Keith Hall believes the US economy is a lot sicker than the 7.6 percent unemployment rate would lead you to believe.

And he should know.

Hall was, from 2008 until last year, the guy in charge of Washington’s Bureau of Labor Statistics, the agency that compiles that rate.

“Right now [it’s] misleadingly low,” says Hall, who believes a truer reading of those now wanting a job but without one to be more than 10 percent.

"I Refused To Let Detroit Go Bankrupt" - Barack Obama, October 2012
"We refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt." - Barack Obama, October 2012.

Congressman: Did You Think This Program Could be Indefinitely Kept Secret from the American People? Government Attorney: “Well we Tried”

WTI Tops $109; Surges Above Brent For First Time In 3 Years

JPM Eligible Gold Plummets By 66% In One Day To Just Over 1 Tonne, Total Gold At Fresh All Time Low

United States Government Debt To GDP

Andrew Maguire - Hedge Funds Gold Shorts To Get Massacred

Gold futures hiccup indicates demand outpacing supply

Mainstream financial media outlet Reuters is going rogue, touting the shortage of physical gold.  lol

Noonan: A Bombshell in the IRS Scandal

Friday, July 19, 2013

Gerald Celente - The Power Of Gold & An Economic Collapse

Maguire - LBMA Now Staring At Another Gordon Brown Abyss

Chaz Bono Gives Weight Loss Drugs Celebrity Appeal — Arena Pharmaceuticals Inc. (NASDAQ:ARNA) and VIVUS Inc. (NASDAQ:VVUS)

Dubai offers citizens gold to lose weight;_ylt=AkGXfGufFJWyu_bLMWXCK0GiuYdG;_ylu=X3oDMTQ4YzRrbWM3BG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwM0ZjI5ZWVhZC0yMDhlLTNlY2YtODA3NC0yOTNiZTlkMjczYTEEcG9zAzUEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgM5YmIxNjk1NS1mMDg4LTExZTItOWI0ZC00ZDM3MjBlNWJiZDM-;_ylg=X3oDMTFkcW51ZGliBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3BtaA--;_ylv=

Thursday, July 18, 2013

JP Morgan Is Reportedly Getting Ready To Settle For $1 Billion For Manipulating Energy Markets

Blythe Masters are her cronies are at it again.

Saudis’ Unprecedented Break with Washington over Egypt

I have certainly blogged about the break up between Saudi Arabia and the US.  With the House of Saud's royal family about to splinter, any pacts and allegiances to provide the US with cheap oil will be null and void.  The threat of lack of security provided by the US isn't as big of a threat to the Saudis these days.

While Israel, Iran, Syria, Egypt et al provide enough geopolitical theater, the fraying relationship between the US and Saudi Arabia may have the biggest impact in the region.  Oil prices, sovereign states, military allegiances, and economic trade will be affected by this all-important alliance.

The Rise In Gold Because Of A Shortage Will Be Spectacular
Since the April smackdown in COMEX gold, physical metal has been pouring out of recognized warehouses and stockpiles as investors all over the world rush to perfect ownership of an asset that, when owned, unlevered, outside the banking system provides the ultimate hedge against market dislocations.

It is incredibly rare to see the price of something falling so precipitously at the same time people are queuing around the block to buy it so what is going on?

The huge decline in the gold price coincides almost perfectly with the request by the Bundesbank to have 300 tonnes of gold held at the NY Fed returned to Germany - an operation which we are told will take seven years.

For years the Central Banks have been leasing out their gold to bullion banks at essentially zero interest to fund the ultimate establishment-endorsed carry trade but now that trade seems to have run its course and bullion banks are going to have to come up with potentially hundreds of tonnes of gold.

Fortunately for them, the structure of the market and the disconnect between the Gold price (the price quoted for a paper futures contract on the COMEX that is effectively merely a claim on physical metal) and the price of Gold (which is far more important as it represents what a buyer has to pay to actually own an ounce of physical gold free and clear) enables them to shake out enough loose holders of the metal via the ETF to make a dent in their shortfall - but only up to a point.

Almost 30% of the total holdings of gold ETFs has been withdrawn since the beginning of the year and this is incorrectly reported as a very bearish development but it's the ultimate destination of that gold that's interesting.

For every seller of the GLD ETF there is a buyer - both parties transacting in paper - not gold.  The only way to convert shares of GLD shares into physical gold is to buy 100,000 of them (roughly $13 million at current prices) and then present them to any one of the Authorized Participants who will redeem the gold on your behalf and deliver it to you.  Supposedly.  There is plenty of anecdotal evidence that not all redemption requests are being met but that is a story for another day.

Roughly 600 tonnes of gold has been sucked out of the various ETFs since their holdings peaked in Q1 but, due to the mechanics of the ETFs, virtually every ounce of that has to pass through the hands of the bullion banks - the same bullion banks who are in a bind over supplying physical metal to meet redemption/repatriation requests.  It's a perfect mechanism to ensure that control of physical bullion is safely in the hands of the bullion banks.


After the quiet default by ABN Amro in early April, 'smart money' has been adding to the problem facing the bullion banks by withdrawing their physical gold from the COMEX warehouses in droves and moving it to private storage facilities outside the banking system which leaves an even smaller pool of available gold to meet an increasing number of delivery requests.

As soon as we get an 'event' which demands people own gold in a hurry (think; Cyprus-style bail-in, overt declaration that the Taper is off the table, more QE etc.) the massive outflows in physical gold over the last few months will become apparent and, as hard as gold has fallen, it has fallen predicated purely on an oversupply of paper.  A rise driven by a shortage of the physical metal itself will be far more spectacular.”


Why John Paulson Still Believes In His Gold Bet

Three of Five Classes of COMEX Traders Record Short Gold Futures

Why Blythe Masters is Telling the Truth About Precious Metals Manipulation

JPMorgan was again recently busted for price manipulation, this time in the energy markets, which means commodities head Blythe Masters lied under oath again.  The pay off to make this latest transgression go away was $500 million.

This is a re-post of Ms. Masters declaring JPMorgan doesn't make directional bets, and that they merely "make markets" for clients and provide "liquidity."  A few weeks later, JPMorgan fessed up to the London Whale trader booking $6 billion in losses before they were able to unwind the trade.

Masters and her boss Jamie continue to lie through their teeth, all the while enjoying their reputation as the biggest and most stable of banks.   Of course, no one mentions their $76 trillion in notional value derivatives exposure.

Big Money Anticipating Another 1970s Style Gold Mania

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

Must read insight from Eric Sprott.

GLD Deception Reaches a New Level

Inflation's Effect on Our Grocery Cart.

Inflation robs from everybody, especially the poor and the middle class. The Fed and US Treasury don't stimulate the economy by printing money out of thin air. Instead, the unintended consequence is they stifle economic growth because they cause consumer prices to rise, despite the BLS official statistics citing low inflation.
Tapped out consumers are faced with rising costs across the board. Have healthcare, tuition, gas, food prices declined for anyone? No. The public has been brainwashed into thinking there is no inflation, because the daily movements are imperceptible. But there is no doubt our purchasing power is slowly being destroyed by the Fed's monetary policies. A look at our grocery cart reveals the truth.
Click on Image to Enlarge

Bernanke Hints of the Coming Economic Collapse

Jimmy Carter: ‘America no longer has a functioning democracy’

Wow, former President Jimmy Carter sounds like former Presidential candidate Ron Paul in denouncing the Obama administration for breaches of privacy.  The former Democratic President may soon join the former libertarian GOP Congressman on the "watch list".

Hathaway - Gold, Silver, The Fed & What To Expect Next

Pento - Despite Pullback Gold Headed To New All-Time Highs

“This Will Trigger A Tidal Wave Of Short Covering In Gold”

Silver To Eclipse $100 On Skyrocketing Chinese Demand

Keiser Report: The Great Gold Eastward Migration

Tuesday, July 16, 2013

The Price Of Silver Is Set To Soar As Inventories Collapse

Methods of using a G protein-coupled receptor to identify peptide YY (PYY) secretagogues
The present invention relates to methods of using GPR119 receptor to identify peptide YY (PYY) secretagogues and compounds useful in the treatment of conditions modulated by PYY, such as conditions modulated by stimulation of NPY Y2 receptor (Y2R). Agonists of GPR119 receptor are useful as therapeutic agents for treating or preventing a condition modulated by PYY, such as a condition modulated by stimulation of Y2R. Conditions modulated by PYY such as may be a condition modulated by stimulation of Y2R include bone-related conditions, metabolic disorders, angiogenesis-related conditions, ischemia-related conditions, convulsive disorders, malabsorptive disorders, cancers, and inflammatory disorders.

Why Is JPM Hoarding Silver?

Silver Set To Advance A Remarkable 800% From Current Levels

Gold versus the money supply

Monday, July 15, 2013

Rick Rule - The Secret To How Eric Sprott & I Became Wealthy

Skype, Cybersex, the NSA, and a fake Twitter account

This is a fake Twitter account, but it's still funny.

Sunday, July 14, 2013

Syrian rebels' Damascus chemical cache found by Assad army - State TV

I've blogged previously that it was the Syrian rebels who were using chemical weapons, not necessarily Assad's troops.  Both sides are probably using them against each other, but this latest revelation doesn't support the US stance that it was Assad's military who was using chemical weapons on their own people.  As it turns out, it looks like it was the rebels who are using chemical weapons, the same al-Qaeda thugs who the US is now supporting.

Here is zero hedge's take:

Israeli Subs Destroy Russian Missiles In Syria; Russia Holds Largest Post-Soviet Military Drill

Meanwhile, Israeli submarines strike 50 Russian-made missiles in Syria, prompting Russia to initiate "military drills."

Now back to your favorite post-Zimmerman acquittal channel...

Israeli fighter jets and Saudi missiles|finance|headline|headline|story&par=yahoo&doc=100884040|Israeli%20fighter%20jets%20and

Henninger: Big Government Implodes

Jim Sinclair quote on the price of gold

My Dear Friends,
Gold will now rise to $1650 then react after which it will challenge and exceed the old high.
If paper gold survives this move for physical gold’s emancipation from fraudulent paper as the price determinant, gold will still trade at $3200 to $3500 per ounce.
If, as I believe, the new Russian and Singapore physical gold exchanges plus more physical gold exchanges that will open become the price discovery mechanism for gold, then gold will trade at $50,000 per ounce.
Respectfully yours,
Jim Sinclair

Travellers' mobile phone data seized by police at border

It looks like the UK has reached an Orwellian state as well.

41 IMF Bailouts And Counting – How Long Before The Entire System Collapses?

This Market Collapse Will Shake The World Financial System

Rick Rule - Here Is The Investment Opportunity Of A Lifetime

We Are In The Early Stages Of A Massive Short Squeeze In Gold

Price Destruction In Gold & Silver Will Be A Distant Memory

Granny’s Gold Bars Are Key to Vietnam Push to Boost Dong

So the governments of India and Vietnam are trying to discourage their citizens from hoarding gold.  These citizens are only protecting themselves from corrupt central bank monetary policies.  It sounds familiar to the Fed and it's anti-gold campaign.

Meanwhile, black markets and smuggling have increased in India and Vietnam, because the smart money knows when official government policies try to dissuade its citizens from any asset, that asset will become more scarce and more valuable.  In other words, the governments' plan to ban gold imports will only backfire, as demand increases.

Asia Gold-Shanghai gold premiums remain high, supply tight

Art Cashin Warns Of Potential Massive Short Covering In Gold

Former US Treasury Official - The Fed Is Facing Collapse

Currency Wars, Gold Peace & Total Collapse

Thursday, July 11, 2013

9 Plagues That Are Collapsing Capitalism

About Those Gold Shorts....

Short squeeze, anyone?

What Bernanke Really Said, Or How The Chairman Just Lost Control Over Policy Again
We don’t believe the Chairman’s intentions have changed. Regardless, the Chairman’s credibility is once again damaged. If the Dollar breakdown continues, it will be a sign that the market believes the Chairman has again lost control over policy. The asset clearly in the best position in such an environment is Gold. After such a notable correction in the past 9 months, the precious metal once again becomes a very attractive global asset if monetary policy in the largest economy of the world spins out of control.

Goodbye Larry Kudlow Report

As I've posited, financial news TV is all about viewership ratings and sponsorships--and not about dispensing the truth.  In fact, it often includes disinformation.  Eventually that ends as well.

Klarman Clarity: "If The Government [Still] Can't Allow Failure Then We Are Indeed Close To Collapse"
Is it possible that the average citizen understands our country's fiscal situation better than many of our politicians or prominent economists?

Most people seem to viscerally recognize that the absence of an immediate crisis does not mean we will not eventually face one. They are wary of believing promises by those who failed to predict previous crises in housing and in highly leveraged financial institutions.

They regard with skepticism those who don't accept that we have a debt problem, or insist that inflation will remain under control. (Indeed, they know inflation is not well under control, for they know how far the purchasing power of a dollar has dropped when they go to the supermarket or service station.)

They are pretty sure they are not getting reasonable value from the taxes they pay.

When an economist tells them that growing the nation's debt over the past 12 years from $6 trillion to $16 trillion is not a problem, and that doubling it again will still not be a problem, this simply does not compute. They know the trajectory we are on.

When politicians claim that this tax increase or that spending cut will generate trillions over the next decade, they are properly skeptical over whether anyone can truly know what will happen next year, let alone a decade or more from now.

They are wary of grand bargains that kick in years down the road, knowing that the failure to make hard decisions is how we got into today's mess. They remember that one of the basic principles of economics is scarcity, which is a powerful force in their own lives.

They know that a society's wealth is not unlimited, and that if the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse. For if you must rescue everything, then ultimately you will be able to rescue nothing.

They also know that the only reason paper money, backed not by anything tangible but only a promise, has any value at all is because it is scarce. With all the printing, the credibility of our entire trust-based monetary system will be increasingly called into question.

And when you tell the populace that we can all enjoy a free lunch of extremely low interest rates, massive Fed purchases of mounting treasury issuance, trillions of dollars of expansion in the Fed's balance sheet, and huge deficits far into the future, they are highly skeptical not because they know precisely what will happen but because they are sure that no one else--even, or perhaps especially, the  policymakers—does either.

What Every Student in America Needs to Know About the Federal Reserve

Chinese Ghost Cities Coming To The Las Vegas Housing Market

Turk - We Are Witnessing Historic & Shocking Events In Gold

Wednesday, July 10, 2013

Dr. Zijlstra’s Legacy and the 21st Century Renaissance of Gold

This is brilliant justification for a return to the gold standard and its inherent checks and balances for international trade settlement.

Where's the Gold?

Putin tells G8 "You want Asad to resign. Look at the leaders you've made in the Middle East."

Diplomatic sources: Putin tells G8 "You want Asad to resign. Look at the leaders you've made in the Middle East."

By Dawud Rimal

Beirut: A diplomatic source has reported that the West has been discussing for some time the issue of the escalating role of Islamists in Lebanon and the Arab countries. The source reports that this discussion might wind up concluding that there is a need to rein in the role of the Islamists. It is along this line of thinking that the West has been encouraging the Lebanese regular army since the 'Abra Battle. [A two-day battle between Lebanese regular army forces and the gang of a Sunni Salafi Shaykh Ahmad al-Asir 'Abra near the southern Lebanese city of Sidon in late June 2013. Translator's note.]

The diplomatic source reports that the changes underway in Egypt were expected by the Western countries and that the leaders of the G8 discussed the matter of Islamists coming to power in a number of Arab countries, including Egypt, in their recent meeting in Northern Ireland. [The Group of Eight or "G8" (Britain, Canada, France, Germany, Italy, Japan, the USA, and Russia) met in Lough Erne, Northern Ireland, on 17-18 June 2013. Translator's note.]

The diplomatic source reports that during that G8 meeting, Russian President Putin delivered a long intervention on that subject.

The prominent European diplomatic source reports that in his statement, the Russian President addressed the leaders participating in the G8 meeting, saying:

"You want President Bashshar al-Asad to step down? Look at the leaders you've made in the Middle East in the course of what you have dubbed the "Arab Spring." Now the peoples of the region are rejecting those leaders. The revolution against Muhammad Mursi in Egypt continues and anybody who knows the character of Egyptian society is aware of the fact that it is a deeply rooted secular society of varied cultures and civilizations with a history of advanced political activity. It will never accept attempts to impose things upon it by force. As to Receb Tayyib Erdoğan [in Turkey], the street is moving against him and his star is beginning to wane. In Tunisia the Muslim Brotherhood-Salafi rule that you formed there is no longer stable and the fate of Tunisia won't be very far from the army seizing power, because Europe will never accept chaos on its borders and Tunisia is an entry way to Europe." (Putin said this before the Chairman of the Joint Chiefs of Staff of Tunisia resigned to declare his candidacy for president of the republic. Note by as-Safir.)

Putin went on: "You have spread anarchy in Libya after Mu'ammar al-Qadhdhafi. Nobody can put together an authority capable of working to rebuild the state there. Yemen after the departure of 'Ali 'Abdallah Salih lacks stability in government and there is no peace in the streets. Military and security unrest continues to prevail in all the regions of the country. As to the Persian Gulf, the whole area from Bahrain to the rest of the states there is sitting atop a volcano," Putin said.

The diplomatic source reported the Russian President as saying: "You want Russia to abandon Asad and his regime and go along with an Opposition whose leaders don't know anything except issuing fatwas declaring people heretics, and whose members - who come from a bunch of different countries and have multiple orientations - don't know anything except how to slaughter people and eat human flesh. You use double standards and approach the crisis in Syria using summer and winter styles under one roof. You lie to your own peoples so as to further your interests. This is none of our business. But it is impermissible for you to lie to us and to the countries and peoples of the world, because the international stage is no longer yours alone. Your ability to monopolize it the way you did two decades ago is now gone for good."

Putin continued: "In Syria all of you are standing on the side of the forces that for the last 10 years you have claimed to be fighting against under the rubric of 'fighting terror.' Now today you are with them, helping them to take power across the region. You declare that you're going to arm them and work to facilitate sending their fighters to Syria to bring it down, weaken it, and break it up." Putin asked, "In God's name what kind of democracy are you talking about? You want a democratic regime in Syria to take the place of the Asad regime, but are Turkey and the countries you're allied with in the region blessed with democracy?"

Putin addressed US President Obama specifically, saying: "Your country sent its army to Afghanistan in the year 2001 on the excuse that you are fighting the Taliban and the al-Qa'idah Organization and other fundamentalist terrorists whom your government accused of carrying out the 11 September attacks on New York and Washington. And here you are today making an alliance with them in Syria. And you and your allies are declaring your desire to send them weapons. And here you have Qatar in which you [the US] have your biggest base in the region and in the territory of that country the Taliban are opening a representative office."

Putin turned to the President of France [François Hollande] to ask, "How can you send your army to Mali to fight fundamentalist terrorists on the one hand, while on the other you are making an alliance with them and supporting them in Syria, and you want to send them heavy weapons to fight the regime there?"

British Prime Minister David Cameron came in for some of Putin's sharpest remarks, when the Russian President told him: "You are loudly demanding that the terrorists in Syria be armed and yet these are the same people two of whom slaughtered a British soldier on a street in London in broad daylight in front of passers by, not caring about your state or your authority. And they have also committed a similar crime against a French soldier in the streets of Paris."

The diplomatic report indicates that the leaders gathered at the summit were surprised then when German Chancellor Angela Merkel supported every word that Putin said in his address. She declared her rejection of any solution in Syria other than a peaceful one, saying "because the military solution will lead Syria and the whole region into the unknown." She strongly opposed arming the Syrian Opposition, "so that these weapons don't get into the hands of the terrorists who plan to use them in attacks against cities in the European Union." She also indicated that she did not want to see some of her European partners getting involved in military and political adventures that would only serve to further deepen their financial and economic deficits, "because Germany is no longer able to serve as a financial and economic rescue line for those countries in order to help cover up their mistakes."

As-Safir newspaper, No 12522, Saturday, 6 July 2013.

Wall Street’s Worst Call In 20 Years, The Sucker Trade & Gold

William Kaye - The Savage Gold War Behind The Scenes

Game Over - “It’s All A Farce, The Fed & German Gold Is Gone”

And by the way, Eric, we may own some of the gold that Germany thinks that they own.  But Germany will never see that gold because it’s safely stored in my account (and) for our investors at the Hong Kong International Airport.

Regarding that gold, which could have had the symbol of the Bundesbank on it when it arrived in Hong Kong, a leading refiner, one of the biggest in the world that deals with the People’s Bank of China (PBOC), certified that, ‘Yes, we’ve got gold available that we can deliver.  We’ve melted it down, we’ve tested it.  It may have had the Bundesbank symbol on it when it arrived, but now it’s melted down .9999 (fine) gold.’ 

That’s how it works in practice.  So the Fed gold, that Americans think is theirs, is gone.  The gold that the Germans have been told they will get back in 7 years, they’ll never get back because it doesn’t exist anymore (at the Fed).  I own it.  The People’s Bank of China owns it.  The Reserve Bank of India owns it.  The central bank of Russia owns it.  But the people of Germany (and America) don’t own it.”

Tuesday, July 9, 2013

EXPOSED - True Cause Of Chaos In Egypt

I'm not endorsing this subscription, but I have met Mike Maloney, and I agree with his assessment of QE causing food prices to rise globally.  I have also blogged many times that rising food prices caused social unrest (including the so-called "Arab Spring") in emerging and Third World countries.  They weren't just civilian uprisings against evil dictatorial regimes by populations desiring to be "democracies" like America, which is what the lapdog US media was so quick to spin.

People were starving and were unable to feed their families, so that is what prompted them to take it to the streets, risking life and limb.

Turk - Something Shocking Has Occurred In The Gold Market

I tweeted this back in June 3, 2013:

Since then, 10-year Treasury yields have reached as high as 2.74%.
Yet the Fed continues to purchase more government debt, as its balance sheet last week reaching another new record high with total assets of $3.49 trillion.  The Fed is not tightening monetary policy, so why are interest rates rising even though the economy is weak and the Fed continues to purchase debt for its QE program?
I think there is only one logical answer, Eric:  Interest rates are rising because of QE.  We have reached a tipping point, meaning that QE can no longer keep interest rates from rising.  The market is now focusing on the dark-side of QE, which is the inflationary consequences of all this money printing.
Rising interest rates with QE ongoing means that we have reached the stage where the Fed has now lost control.  This result was inevitable because market forces always beat central planners and its groupies in the end.  Only the timing of this event could not be predicted.
Since the bailout of the financial system in the autumn of 2008, and the launch of QE in March 2009, desperate central planners had been hoping their crazy theories which try to create wealth by printing money would work.  But those theories never had a chance.  All one had to do was read monetary history to see that these schemes have always failed.
The key point is that the market is now responding to this central planning foolishness.  Capital is protecting itself by demanding higher interest rates, and as interest rates climb, the fallout will be immense.  This brings me to the second key event taking place:  Even the LBMA website now shows that gold is in backwardation.  The gold forward rate out to three months is negative.