Thursday, July 30, 2015

4 Mainstream Media Articles Mocking Gold That Should Make You Think

Meanwhile In Venezuela... The Socialist Paradise Has Arrived
As we recently warned, the hyperinflationary collapse in Venezuala is reaching its terminal phase. With inflation soaring at least 65%, murder rates the 2nd highest in the world, and chronic food (and toilet paper shortages), the following disturbing clip shows what is rapidly becoming major social unrest in the Maduro's socialist paradise... and perhaps more importantly, Venezuela shows us what the end game for every fiat money system looks like (and perhaps Janet and her colleagues should remember that).

Total Collapse: Greece Reverts To Barter Economy For First Time Since Nazi Occupation

Sunday, July 26, 2015

US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low

Buy the dip.

Shanghai Gold Exchange Withdrawals Week Ended July 17, 2015
Gold withdrawals on the Shanghai Gold Exchange the past two weeks were larger than the amount of gold delivered on COMEX during 2014 and greater than the amount of gold Germany has repatriated from the New York Fed since 2013.

Friday, July 24, 2015

Attention America’s Suburbs: You Have Just Been Annexed

The Death of Gold…….Or Not!

This Has Never Happened To Gold Before

When it comes to equities or even bonds, the hedge funds are usually labeled the "smartest guys in the room."  But when it comes to the precious metals sector, they are not.  The shorts in gold got squeezed today.

Economic Totalitarianism And The War Against Cash

Jim Grant: Still Bullish On Gold; Says Fed In A Hurry To Raise Rates

This is another way of saying "buy the dip(s)."

Central Banks and Our Dysfunctional Gold Markets
It's because gold is a powerful competitive international currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates, and the value of government bonds. Gold's performance is usually the opposite of the performance of government currencies and bonds. Hence central banks fight gold to defend their currencies and bonds.  

The problem is that central bank tactics in this fight affect more than gold; they affect markets generally and eventually destroy markets generally. This destruction of markets now has a name, a name used even by former members of the Federal Reserve Board. That name is "financial repression."

Banks Sued on Claims of Fixing Price of Gold
According to one of the suits, “The ‘great flaw’ of the gold fixing process is that the member banks trade on the information exchanged during the call to manipulate the price of gold and gold derivatives before publication of the gold fix to the wider market.”

Each of the banks — Barclays, Scotiabank, Deutsche Bank, HSBC and Société Générale — denied, or declined to comment, on the accusations of collusion, which — at least traditionally — have been dismissed as a conspiracy theory. Nonetheless, concerns that the gold fix may be rigged have escalated of late in part because of investigations into the setting of the London interbank offered rate, or Libor, and suspicions about manipulation of global foreign exchange rates.

“A lot of conspiracy theories have turned out to be conspiracy fact,” said Kevin Maher, a former gold trader from New York, who filed the first suit against the banks. (The case is Maher v. Bank of Nova Scotia, 14-cv-01459.) “We now know that Libor was manipulated and that a bad odor is coming out of the Forex market. So why not gold?”

Mr. Maher, who started trading gold in 1993, said he filed his suit reluctantly and only after he became convinced that official regulators were unwilling or unable to investigate the fix. “I didn’t feel like there was any oversight, either from the government or from self-regulating entities,” he said in an interview last month. “A lawsuit seemed to be the only means to rectify the problem.”

Unprecedented emergency statewide fishing closures enacted in Pacific Northwest

And they said the effects of the Fukushima nuclear power disaster would be contained.  Sure, the drought in the Pacific northwest can be a culprit, but it that the only factor in major sea wildlife die-offs?

Liberty Movement Needs More Innovations To Counter Technological Tyranny

Friday, July 17, 2015

China finally says how much gold it has, but nobody believes it

Apparently, I'm not the only skeptic regarding China's official gold holdings.  My estimate is somewhere north of 5,000 tons.  There are various reasons why China may be understating their gold holdings, but at some point, the truth will come out, and the fireworks in the precious metals markets will begin.

Wednesday, July 15, 2015

Hillary Clinton Blasts High Frequency Trading Ahead of Fundraiser with High Frequency Trader

Santa Cruz County Votes to Cease Doing Business with Five TBTF Mega Banks

For those who still hold on to the notion it is only conspiracy theorists who believe our banking system is completely corrupt, look no further than Santa Cruz County to spell it out for you.  This is close to home for many of you, so perhaps you might want to take note.

It is interesting that UTIMCO, the endowment fund for the University of Texas system, repatriated their physical gold from HSBC's vaults in New York.  Texas is traditionally a very conservative state, wary of the federal government's over-reach, and generally mistrustful of .gov.  This is duly noted--and understandable.  As the saying goes, "Don't Mess With Texas!"

But contrast that with Santa Cruz County, which is traditionally very liberal.  Yet, both sides of the aisle now mistrust the global banking system.

Wake up, people.  The sun is setting on fiat currency regimes.  Prepare for it, because it is coming.  Well, what does that mean--prepare for a currency reset?  It means your social security checks, pensions, even bank deposits, as well as your money market funds will be eviscerated.  In fact, any debt instruments, even short-term bills, carry inherent risks, including currency devaluation, counterparty, inflation, higher interest rates, default, and liquidity.

In other words, why take on all those risks for the privilege of earning 0% returns?

See Cyprus, Greece, bank depositor bail-ins, and capital controls coming to a country near you.

Tuesday, July 14, 2015

For Indians, paper gold can't beat the real thing

Read between the lines.  The Indian government is demonizing--even criminalizing, citizens owning physical gold.  Paper gold is fine is their minds.  So are fine art, exotic sports cars, and high-end mansions.  But if someone wants to own physical gold they can carry around in their pockets?  Blasphemy!

Even the semantics are derogatory.  They have the gall to label physical gold "black money."

When the corrupt authorities and insolvent governments discourage the masses from owning a particular asset, it might be in the hoi polloi's best interests to own that very same asset.

Greeks Can’t Tap Cash, Gold, Silver In Bank Safety Deposit Boxes

Many Greeks were also withdrawing their cash because they fear the country might be forced back onto the drachma. However a little known fact is that, Greeks who had prepared for bank runs by withdrawing cash and buying gold and silver bullion and then lodging that bullion and indeed cash into safety deposit boxes have also been caught up in the draconian capital controls.
We have warned about this for many years and warned as recently as April this year that people should avoid using safety deposit boxes in banks.
“Greeks cannot withdraw cash left in safe deposit boxes at Greek banks as long as capital restrictions remain in place”, Nadia Valavani, a Deputy Finance Minister in Greece told local television station according to a Reuters report.

10 Countries Now Facing Default As Global Crisis Escalates – What To Expect From China, Europe and The U.S.

The Shemitah: The Biblical Pattern Which Indicates That A Financial Collapse May Be Coming In 2015

Sunday, July 12, 2015

Systemic "Holidays" Are Coming to Banks, Money Market Accounts and More in the Weeks Ahead
1)   The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

2)   When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.

3)   In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

4)   The US bond market  (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

5)   Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

6)   Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of “money” in the system is in the form of digital loans or credit (non-physical debt).

Economic Sanctions Cause War, Not Peace—–Some Lessons From FDR’s Embargo Against Japan

As Global Asset Bubbles Implode, Synthetic Economies To Enter Monstrous Worldwide Depression

Thursday, July 9, 2015

Cronyism Pays – Eric “Too Big to Jail” Holder Triumphantly Returns to His Prior Corporate Law Firm Job

No Jobs for the Young, No Retirement for the Old

BRICS Bank Officially Launches As Sun Sets On US Hegemony

Japanese Investors Lose Faith In Draghi - Dump The Most Foreign Bonds In History

Greece matters after all.  Contagion is a bitch.

Preparedness Critics Are History’s Cannon Fodder
It is perhaps not coincidental that the people most in love with the state are often the first ones to be annihilated by it.  Avid lower echelon and middlemen agents of tyranny are in many cases exterminated by the very system they helped to dominance. If they do not meet their demise at the hands of the establishment, then they invariably meet their demise at the hands of those fighting against the establishment.

Sunday, July 5, 2015

Feds ‘lose’ audits for Fort Knox Gold

The BIS Is Trying To Hide A Terrifying Nightmare That Is Going To Send The World Into A Full-Blown Panic

JPMorgan Just Cornered The Commodity Derivative Market, And This Time There Is Proof

Euro Area Exposure to Greek Exit Via EFSF

Greece defaulting could be analogous to Lehman Brothers defaulting.

Click on Image to Enlarge

Citigroup Just Cornered The "Precious Metals" Derivatives Market

To provide some contextual color, the Hunt brothers were prosecuted for trying to corner the silver market in 1980.  They achieved approximately a 10% long position in silver, trying to profit on rising silver prices.  A closer inspection reveals the government regulators changed the goal posts on the Hunt brothers, turning them from mere speculators to criminals.

Fast forward to today, and JPMorgan has carved out a 90% position in the COMEX gold exchange, while Citigroup has a 70% position in COMEX silver.  It is egregious that the Hunt's were busted for taking a 10% position, while JPMorgan and Citigroup are left unchecked, free to take massive, concentrated (short) positions.

Yes, the bullion banks will claim they are market makers providing liquidity by taking both sides of a trade, but they have been incessantly investigated for manipulating markets by taking outsized, concentrated positions in LIBOR, fixed-income, and commodities markets.  They used this exact same argument prior to the cratering of subprime mortage-backed securities.

In other words, they are not only Wall Street casinos, they are also placing their own huge one-way bets--and getting in trouble when those bets go sour.  These bets aren't hedges--they are wagers placed from their proprietary trading desks.  It is not a stretch to deduce they are up to the same shenanigans in the much smaller precious metals complex.

Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For

Gerald Celente – The Great Global Panic Is On But This Is Going To Shock The World
How could anybody with an ounce of brains that lives in Greece keep their money in the banks as they saw this crisis unfold?  Now they are waiting in line because they have a ‘bank holiday.’  ‘Bank holiday,’ how’s that for BS?  ‘Holiday,’ we’re going to take your money and hold it and maybe we’ll give it back to you.  Look at the amount of gold purchases going on in Greece right now.  Don’t they wish they had their money in gold, rather than in a bank in Greece?