Thursday, May 31, 2012

China should not be allowed to buy the LME

My prediction:  if China is the winning bidder for the London Metal Exchange, inflation is guaranteed going forward, as the world's largest consumer of base metals will control the world's biggest exchange.

Einhorn Eviscerates Buffet: "If You Wrap Up All $100 Bills In Circulation, It Would Form A Cube 74 Feet Per Side"

Methinks hedge fund manager David Einhorn was taking a return shot at Berkshire Hathaway's Warren Buffett and Charlie Munger for mocking gold bugs.

US Dollar Strong, What to Expect From Gold & Global Equities

Renminbi’s mysterious rise: trade finance or interest arbitrage?

Taleb Says Euro Breakup 'Not a Big Deal' as U.S. Still Scariest

Tuesday, May 29, 2012

Newmont CEO - China Doing Everything It Can to Get Gold

Europe’s debtors must pawn their gold for Eurobond Redemption

To those who insist gold is NOT money, you've been  checkmated.

Germany would have a lockhold over the fund, able to enforce discipline. Each state would have to pledge 20pc of their debt as collateral. "The assets could be taken from the country’s currency and gold reserves. The collateral nominated would only be used in the event that a country does not meet its payment obligations," said the proposal. 
This demand could enflame opinion in Italy and Portugal. Both states have kept their bullion, resisting the rush to sell by Britain and others. Italy has 2,451 tonnes of gold, valued at €98bn in March.

Greyerz - $100 Trillion+ to be Printed, Expect Capital Controls

President Choomwagon

Safe Haven: Could U.S. Markets Rally in a Global Decoupling?

Spain Delays And Prays That Zombies Repay Debt: Mortgages

That's an interesting title for a Bloomberg article.  But it's also descriptive.

Saturday, May 26, 2012

Friday, May 25, 2012

Police urge Greeks to keep money in bank

Greece's national police spokesman, Thanassis Kokkalakis, told Reuters: "Many people have withdrawn their money from the banks fearing a financial crash, and they either carry it on them, find a hideout at home or in storage rooms. 
"We urge people to trust the banking system, leave their money there, or at least in a safe place, not hide it at home, where they must anyway take the basic security measures."
Surely, Greece's national police spokesman jests: trust the banking system?!?  Talk about denial...and deceptive propaganda.  Maybe he is Baghdad Bob's cousin.

Japanese Girl-Band Wants You (To Buy Japanese Government Bonds)

The Japanese government is pulling out all the stops in trying to jam more government bonds down their citizens' throats.

Thursday, May 24, 2012

Google Trends Shows Why The Status Quo "Powers That Be" Should Be Scared. Very Scared

Ronaldo’s new position – bank collateral

You can't make up this tragic comedy.  Things are getting so desperate in Europe, that nothing is off the table.

Half Of Detroit’s Streetlights May Go Out As City Shrinks

American is so broke, it is having trouble keeping the lights on--literally.  This will only suppress the crime rate in Detroit, right?

Real federal deficit dwarfs official tally

Finally, a mainstream media outlet exposes the truth of fictitious federal government accounting.

The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.
The deficit was $5 trillion last year under those rules. The official number was $1.3 trillion. Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, according to government actuaries, but the amount was not registered on the government's books.

Is China Really Liquidating Treasuries?

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP

HP laying off 27,000 workers in restructuring

Former J.P. Morgan Lobbyist Manages The Banking Committee Expected To Investigate J.P. Morgan’s Trading Loss

Banks Are Loaning Out “Allocated” Gold

Tuesday, May 22, 2012

Roberts Johnson on the Economics profession

Farage: Break up the euro and restore human dignity

What Investors Need to Know About Gold & the Mining Shares

“Clearly, Eric, we’ve seen a big decline in the value of gold equities.  Yesterday I was reading a piece by Don Coxe, a well known strategist.  In his note he did a calculation on how much gold one can buy with $1,000 in the gold ETF versus what can be purchased with some mining companies. 
Based on the prices a few days ago, so it’s more extreme now, but with $1,000 you can buy .62 ounces of gold in the ETF.  If you buy $1,000 of Goldcorp shares, you get 4 ounces of gold.  With El Dorado, an intermediate company, you get more than 5 ounces of gold.  With a smaller producer like Perseus Mining, you get nearly 7 ounces of gold. 
So, you can get up to 7 ounces of gold for $1,000, or .62 ounces through the ETF.  Clearly he wasn’t making a recommendation on these stocks, he was just bringing to attention the tremendous value in the gold equities as a group."

Missouri lawmakers debate U.S. gold, silver coins use as legal tender

The G8 flunks the test

Fitch cuts Japan debt rating, outlook negative

Don't say you weren't warned by yours truly.  This downgrade of Japan was long overdue.  Japan is about to enter the toilet bowl, for reasons given many times in these blogs.

Monday, May 21, 2012

Customer Shocked “Allocated” Gold Not in Swiss Bank

Americans Want Smaller Government and Lower Taxes

U.S. lets China bypass Wall Street for Treasury orders

The US Treasury has been backdooring Wall Street in its debt sales to China.  The sharks are now eating the other sharks.  I guess the Chinese got tired of being front run by the primary dealers.

Minsky Moment

Time to revisit this topic.

Minsky moment is the economic phenomenon that occurs when over-indebted investors are forced to sell good assets to pay back their loans, causing sharp declines in financial markets and jumps in demand for cash.[1][2] In any credit cycle or business cycle it is the point when investors begin having cash flow problems due to the spiraling debt incurred in financing speculative investments. At this point nocounterparty can be found to bid at the high asking prices previously quoted; consequently, a major sell-off begins leading to a sudden and precipitous collapse in market-clearing asset prices and a sharp drop in market liquidity.[1] 
The term was coined by Paul McCulley of PIMCO in 1998, to describe the 1998 Russian financial crisis,[2] and was named after economistHyman Minsky. The Minsky moment comes after a long period of prosperity and increasing values of investments, which has encouraged increasing amounts of speculation using borrowed money.
Some, such as McCulley, have dated the start of the financial crisis of 2007–2010 to a Minsky moment, and called the following crisis a "reverse Minsky journey"; McCulley dates the moment to August 2007,[3] while others date the start to some months earlier or later, such as the June 2007 failure of two Bear Stearns funds. 
The concept has some parallels with Austrian business cycle theory[4] although Minsky himself was known as a Keynesian and is identified as a post-Keynesian.[5]

Recovery Begins When Addiction Ends: An Open Letter to Jamie Dimon

Currency Wars - James Rickards

JPM, Facebook, Gold … And The Potential of A Titanic Financial Market Event

Don't say I didn't tell you so.  More heads are going to roll, and more markets are going to implode.  The dominos will fall as the incessant manipulation will catalyze the "contagion effect" of metastasizing rot.

Sunday, May 20, 2012

Nassim Taleb on JPMorgan

The interviewer should shut up and learn a thing or two, instead of constantly interrupting Taleb.

US judge blocks indefinite detention of Americans

Saturday, May 19, 2012

Chris Powell Answers Doug Casey's Questions About Gold Manipulation

The Physical Gold Market – From the Weak to the Strong

This is one of the most important articles you'll ever read on the difference between the physical gold market and the paper gold market, and the difference between strong hands and weak hands.  This is a must-read for anybody interested in money.

Alasdair Macleod: All Roads in Europe Lead to Gold

On Gold
People who have gold or silver, I think actually had a very rough ride over the last couple of months. A lot of them are wondering what on Earth is going on because every time you get good news, gold seems to rally along with equities, but every time there’s bad news and gold actually should be giving you some protection, it goes down the swanny.
I think the problem there is that the whole system is run by people who went to college and were taught keynesian economics. In my day, when I first went into the stock market and I enjoyed that first bull market in gold when it went from thirty-five bucks to eight-fifty, the traders and investment managers were all practical people. They all cut their teeth, all learned their trade the hard way. Some of them had degrees in college, but generally it would have been something like classics or history or something like that. If they got a degree in economics, they probably would have left because they never would have understood it in those days. But now it has changed. Everybody who is employed has a degree and if they are anything to do with investment strategy, or the investment business, it is all economics degrees. So they have been brainwashed in the keynesian thing. This sort of neoclassical approach where gold is yesterday’s story, paper money is the future. They really do believe it and it is the opinions of these people who drive the markets in the short term.
The result is that gold and silver have become very, very seriously mispriced. I don’t think I have seen a stretch like this as I can remember; by stretch, the difference between perhaps where it should be. We must be careful not to tell the market what the price should be, but it is so underpriced at a time of enormous systemic stress, that I think when gold and silver snap back into a more sensible, logical valuation relationship with the markets, the move actually could be very, very sharp and quite large. If gold ran up through the $2,000 level very quickly, which I think is a very strong possibility, because it is been held down so much, that could bring other problems. The central banks, who might have sold gold and not told us about it will find that they are embarrassed. I think also the bullion banks in London who operate a fractional reserve system with gold, exactly the same way as to do with any paper currency, will be hurt very, very badly on the run. Any shorts in the futures market equally could be hurt very, very badly. We have a situation, where there is a potential for a huge run in gold and I personally wouldn’t be surprised to see it. - Alasdair MacLeod

What Jamie Dimon Really Said: The CIA's Take

Fears of Bank Runs Mount in Southern Europe

Friday, May 18, 2012

The Interconnected World of Tech Companies (INFOGRAPHIC)

Thanks to Kitty for finding this "org" chart.

Open letter to US Senators on the Ex-Patriot Act

Dear Senator XXX:

I urge you to reject the proposed legislation titled "The ex-PATRIOT Act" put forth by Senators Schumer and Casey, as this piece of legislation is very concerning for the following reasons:

Foremost, it will only accelerate capital flight and discourage future investors and entrepreneurs from coming to America. Every attempt to hold on to the past is an obstacle to improving the future. The sad truth is that as the economy has globalized and hundreds of millions of people worldwide have entered the middle class, America's stock has dropped. I know that because I frequently travel internationally, both for business and pleasure.
Twenty years ago, Americans were welcomed with open arms almost everywhere they went. The US passport was considered the gold standard of travel freedom. That, however, has completely changed. Consider Brazil, perhaps the greatest success story over the last decade. While Europeans travel to Brazil visa-free, US citizens must obtain a visa prior to travel at a cost in excess of $100. Americans aren't even offered the convenience of paying upon entry into Brazil.
This is highly emblematic of the wrong-headed protectionism that comes out of Washington, DC. America's strength comes from its willingness to challenge the status quo, take risks, innovate and build a better future. In a global economy, these innovations can be developed anywhere. Santiago, Hong Kong, Hyderabad. 
America was a place where investors, entrepreneurs and human resources could readily bring financial, intellectual and human capital together to create revolutionary products and services. While the rest of the world is learning that, and learning quickly, it appears that America is forgetting it. 
In the Research Triangle Park, we are seeing technology experts return to their home countries because while the opportunities have improved in their home land, the heartache associated with staying in the US has only increased. I am sure you know this because you surely speak to executives and entrepreneurs from the area. My firm, small as it is, has had to outsource some software development, not for cost reasons, but simply because we could not find the necessary skills in the RTP, at any cost.

Another, and far more pernicious, effect is how Americans will respond to this precedent. While the most atavistic Americans may say "good riddance" as they wistfully ponder on a greater past, many successful middle-class Americans will see the writing on the wall. What starts out as the "millionaire's comeuppance tax" rapidly expands to de-facto capital controls for everybody, resulting in more productive Americans headed for the exit.
This isn't speculation, as it is already occurring. This wrong-headed legislation by the two senators will only accelerate that, making it even harder to compete globally. In turn, the work force balance will increasingly shift to those with less competitive skills. This argument is bolstered by the fact that despite a persistently high unemployment rate, there are careers and industries that are experiencing significant labor shortages. The regulatory environment is encouraging people to retain skills that the market no longer demands while punishing success in industries for which the market is clamoring. This philosophy is economic suicide.

Supporting such legislation may make for good populist sound bites on the evening news, but its effect will only be to place America at an even greater competitive disadvantage. I urge you to vote against this stillborn legislation.


Pete Kofod

UK banknote printer readies for Greek call - source

If one thinks a Greek exit from the Euro is imminent, here's a play to perhaps profit from the return of the drachma.  One man's trash is another man's treasure.

See disclaimers in the side bar.

Disclosure:  I have no position in De La Rue.

Turkish gold sales to Iran soar as sanctions bite

This is further evidence that gold is a currency of last resort--and a reminder why gold is hated by the governments of the western developed countries.

Eric Sprott - Governments Frightened of Panic Liquidation Event

Thursday, May 17, 2012

Worst Still to Come?

This is a great debate on hedging, proprietary trading, risk management, separation of banking vs. trading, free markets, and regulation, among other things JPMorgan-related.

Germany's Eurozone Dilemma (Portfolio)

Gold Tells the Truth

A Simple Question For Senator Schumer

Regardless Of What The Propaganda Says, This Is Not How A Free Society Treats People

U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff

Oldie but goodie from Laurence Kotlikoff on the true national debt.

The American Foreclosure Process Has Ground To A Halt

Senators to Unveil the ‘Ex-Patriot Act’ to Respond to Facebook’s Saverin’s Tax ‘Scheme’

As predicted, the US is attempting to become the next Cuba when it involves citizenship.

Wednesday, May 16, 2012

Alan Simpson Urges U.S. Budget Sacrifices

Japanese pension fund switches to gold

Priceless: How The Federal Reserve Bought The Economics Profession

Needy States Use Housing Aid Cash to Plug Budgets

Greek crisis, Banking system, Economic Armaggedon.

Bill Buckler quote

"While the US Dollar and Treasury debt are the twin foundations of the system, the major modern indicators of how the system is functioning are the stock market and the precious metals, Gold in particular but also Silver. A stock market investment is a bet ON the system, a purchase of physical Gold and/or Silver is a bet AGAINST it. This is clearly shown by the lengths to which the financial powers that be will go to support the stock market - and to undermine the price of the precious metals." - Bill Buckler, The Privateer, 12 May 2012

Soros 1Q Filing: Ramped Up Gold ETF, Dropped Google, Bought JPMorgan

George Soros' fund quadrupled its gold ETF holdings last quarter--despite Soros declaring "The ultimate asset bubble is gold" in 2010.  "Do as I do, not as I say," is the take-away message, I guess.

Germans Fret about Their Foreign Gold Reserves

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'

Pento - Here Is What Is Facing Investors & The World Today

Another Signpost On The Road To Inflation

Tuesday, May 15, 2012

HBO Documentary Films: The Weight of the Nation - Part 2: Choices

Japan's WTF Chart

Nic Colas On India's Temple Of Gold

Grexit and Bank Run Prospects Continue to Weigh on the Euro

And a bank run in Greece begins...

That Which is Unsustainable Will Go Away: Pensions

The Santelli Exchange: California Dreamin' a Nightmare?

A whale in the waters of negative yields

When the world's largest bond investor is forecasting a world where gold and silver will once again form the foundation of the global monetary system, one should sit up and take notice.  Bond investors are understandably anti-gold.

Embry - This is One of the Greatest Statements of All-Time

I would defer to Jim Sinclair, who I have the utmost respect for on this one.  He has said for a long time that the derivative situation ‘guarantees quantitative easing to infinity,’ which is one of the great statements of all-time....
“I think this JP Morgan revelation just confirms that everything Jim’s been saying for a long time on this subject is dead right.  The fact that we will have QE to infinity would suggest that an intelligent person would be buying every single ounce of gold and silver he can get his hands on at these prices.
They are trying to sell this idea that gold goes down on the ‘risk off’ trades that we are experiencing now.  And that the ‘risk off’ buyers all go running into the US dollar and the US bond market.  I think those are two of the riskiest things on the planet.  But somehow they are still getting this ‘Pavlovian response’ that when things are bad out there, you should sell your gold and buy US bonds.  It’s ridiculous.

Monday, May 14, 2012

An Ex-LTCM Trader Will Be Overseeing $70 Trillion In Derivatives

A Greek exit from the Euro

According to a JPMorgan analyst (the investment bank is having troubles of its own), a Greek exit from the European Monetary Union would have the following adverse consequences:

The consequences for Greece would be clearly negative, if not catastrophic following an exit: high inflation, fuel shortages, big reduction in living standards, increase in social tensions or even unrest, political isolation internationally. This is why the chances of a Greek exit should be logically significantly below 50%.
I would agree with that scenario, but disagree on the handicapping:  an exit will happen, and while catastrophic in the short-term, it is the only solution for Greece's long-term viability.   A sovereign country's ability to borrow and overspend has its limits and Greece has reached its fiscal cul-de-sac.  The other developed countries should take note of that reality.

Sunday, May 13, 2012

Quotes from Blythe Masters, JPMorgan Chase Head of Global Commodities

  • "JPM's commodities business is not about betting on commodity prices but about assisting clients"... "it's about assisting clients in executing, managing, their risks and ensuring access to capital so they can make the kind of large long-term investments that are needed in the long run to expand the supply of commodities"...
  • "There's been a tremendous amount of speculation particularly in the blogosphere on this topic. I think the challenge is it represents a misunderstanding as the nature of our business. As i mentioned earlier, our business is a client-driven business where we execute on behalf of clients to achieve their financial and risk management objectives. The challenge is that commentators don't see that. So to give you a specific example, we store significant amount of commodities, for example, silver, on behalf of customers we operate vaults in New York City, Singapore and in London. And often when customers have that metal stored in our facilities, they hedge it on a forward basis through JPMorgan who in turn hedges itself in the commodity markets. If you see only the hedges and our activity in the futures market, but you aren't aware of the underlying client position that we're hedging, that would suggest inaccurately that we're running a large directional position. In fact that's not the case at all.
  • "We have offsetting positions. We have no stake in whether prices rise or decline. Rather we're running a flat or relatively flat matched book.
  • "What is commonly out there is that JPMorgan is manipulating the metals market. It's not part of our business model. it would be wrong and we don't do it." - Blythe Masters, Head of Global Commodities, JPMorgan Chase, during a CNBC interview in April, 2012
Why does the media continue to posit that "no one saw it coming" when referring to JPMorgan's disastrous unwinding of their credit risks?  Losses may exceed $5 billion.  But hey, they were perfectly hedged, right?

Gold 'going to $3,000'

California facing higher $16 billion shortfall

Thursday, May 10, 2012

Goldman Stands By Gold-Rally Forecast Even as Price Drops

Goldman Sachs Group Inc. (GS) stood by its forecast for a rally in gold this year, saying that the precious metal will advance to $1,840 an ounce over six months as the U.S. central bank embarks on a third round of stimulus in June.
Gold remains the “currency of last resort,” according to analysts led by Jeffrey Currie in a report dated yesterday, the same day that the price sank to the lowest level in four months as Europe’s escalating debt crisis boosted the dollar. The restated gold forecast implies a 16 percent surge.

JPM Crashing After It Convenes Emergency Call To Advise Of "Significant Mark-To-Market" Losses In Bruno Iksil/CIO Group

In another mainstream media's "no one saw this coming" event, JPMorgan implodes.

Lorcaserin, a 5-HT2C agonist, decreases nicotine self-administration in female rats.

Possible label expansions:
1) obesity
2) diabetes II
3) smoking cessation
4) depression
5) other addictive behaviors


Entry into a Material Definitive Agreement
On May 9, 2012, our wholly owned subsidiary, Arena Pharmaceuticals GmbH, or Arena GmbH, and Eisai Inc., or Eisai, entered into an Amended and Restated Marketing and Supply Agreement, or the Amended Agreement, which amends the Marketing and Supply Agreement, or Original Agreement, the parties entered into in July 2010. The Original Agreement provided Eisai exclusive rights to commercialize lorcaserin in the United States and its territories and possessions, subject to the approval by the U.S. Food and Drug Administration, or FDA, of our New Drug Application, or NDA, for lorcaserin. The Amended Agreement expands the territories such that Eisai now also has exclusive rights to commercialize lorcaserin in most of North and South America (including Canada, Mexico and Brazil), or Additional Territories, subject to applicable regulatory approval.

Lorcaserin Receives Positive Vote From FDA Advisory Committee

Wednesday, May 9, 2012

Eric Sprott on gold and silver

Lorcaserin Advisory Committee Chat Link

Click on the link above, get live updates, and post your comments.

Potential reversal for gold miners

Metals Down, Miners Up — What It Might Mean

1) The plunge in mining shares has finally gotten the attention of investors who understand that most of these companies are viable and profitable, and that they won’t go to zero. So at some point the downtrend will stop, and though today might or might not be that day, it’s definitely coming. Downside risk, in other words, is now smaller than upside potential.
2) Share buyers are watching the mess in Europe and concluding that austerity is being replaced with monetary and fiscal ease. The European Central Bank will have no choice but to buy up trillions of euros of peripheral country debt to keep the eurozone together — or the currency union will fall apart and former members will go back to their old currencies and devalue aggressively. Either outcome is inflationary and therefore great for precious metals.
3) Gold miners are outperforming silver miners, which means investors are going for pure monetary protection rather than the growth/inflation play that silver represents. They’re betting on chaos, which is pretty reasonable at the moment.

The Death Spiral of Debt, Risk and Jobs

Farage: We face the prospect of mass civil unrest, even revolution

Is China A Currency Manipulator?

Extraordinary popular delusions and the madness of machines

Iran accepts renminbi for crude oil

This is further evidence of the "petrodollar" losing its hegemony in global oil markets.

Warren Who? Gold Bugs Still Think They Have Right Idea

Tuesday, May 8, 2012

Economic Alert: If You’re Not Worried Yet…You Should Be

Santelli On The Encumbered Youth Of The US

Buy the Dip

P.S.  This is a parody.  In no way, shape, or form should it be construed as investment advice.  I know this is a kill joy, but observe the disclaimers in the side bar.

The Emperor Is Naked
"My investing model is ABCD: Anything Bernanke Cannot Destroy: flashlight batteries, canned beans, bottled water, gold, a cabin in the mountains." - David Stockman

China’s Gold Imports Jump as Country May Become Biggest User

Monday, May 7, 2012

Gold is limited government, which is more 'civilized' than the alternative

The Munger Games

More blowback from Charlie Munger's "uncivilized" comment regarding owners of gold.  When proven wrong, sometimes the best tactic is to use ad hominem attacks: kill the messenger.

Two Charts Exposing America's Record Shadow Welfare State
..."this is the new stealth stimulus program - so far in 2011, nearly one million Americans have applied for disability and year-to-date, 333k have actually enrolled (covering 539k family members). In total, more than five million people have been added to disability coverage since President Obama took over three years ago." The punchline will make all those who adore (insolvent) welfare states shake with giddy delight: "So look - either safety standards at work have eroded dramatically or the "99%" have found a creative way to milk the system and turn the economy into a quasi welfare state"...
...the BLS assumes that any amount up to the total 53 million people, is not in the labor force as they have other "wefare" based forms of government handouts and see no need at all to look for a job. Is there any wonder why US unemployment is realistically 20% if not much higher? 

Saturday, May 5, 2012

Ron Paul vs. Paul Krugman

Forget the recent Ron Paul vs. Paul Krugman debate on Bloomberg TV.  It was more a he said / he said with neither side adding anything new to their talking points.  But let's look at what these two predicted a decade ago. First, Ron Paul:
"Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing."Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts." - Ron Paul, September 10, 2003

This is what the esteemed Paul Krugman prescribed:
"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble." - Paul Krugman, August 2, 2002
Now, ask yourself:  who got it right--the obstetrician/gynaecologist from Texas or the Nobel Laureate in Economics from Princeton?  In fact, who got it completely wrong?

To Professor Krugman and your Ivy League cronies who completely missed the boat:  go screw yourself.  You and your colleagues in the ivory tower have already screwed the global economy.  Do us a favor and shut your pie-hole.

Is an Economic Deluge Nigh?

A Whole Lot Of Uncivilized People Out There...

Friday, May 4, 2012

Debt Disequilibrium

While the media remains focused on GDP it is the wrong measure by which to measure the economy. A truly growing economy leads to rises in prosperity. GDP does NOT measure prosperity — it measures spending. It is the measure of real personal incomes that measures prosperity. Prosperity MUST come from rising incomes.
GDP, on the other hand, can be distorted through government spending, which masks the effects of declining prosperity through weaker incomes. GDP does NOT lead to a increase in prosperity. 

Debt Serfdom in One Chart

Santelli On Propaganda And Ostrich Economics

Shattering the American dream: The US government’s Ponzi scheme

The 86 million invisible unemployed

Thursday, May 3, 2012

Our central bankers are intellectually bankrupt

Quantum computer with separate CPU and memory represents significant breakthrough

Speaking of quantum computers:

The Fed's Jelly Donut Policy

This is a brilliant analysis of the Fed's (misguided) monetary policies.

Biderman's Daily Edge 5/2/2012: A Reason Not to Trust Friday's BLS Numbers

Osama's Grand Plan To Destroy America: President Biden
Bin Laden planned to target more airplanes at Petraeus and President Obama with the cunning plan that a successful assassination would propel an "utterly unprepared" Vice President Biden into the Oval Office - and send the US spiraling into chaos." In the aftermath of Solyndra and the realization that Biden's key economic advisor was Jon Corzinethis actually sounds like a brilliant plan.
I'm going to guess whomever Mitt Romney selects as his running mate will be considered an upgrade from Biden.  This is not to suggest I am endorsing Romney or his running mate--in fact, quite the contrary.  But this does suggest I have no faith in Obama and Biden to lead our country out of this mess.

Tuesday, May 1, 2012

Artemis On Volatility At World's End: Deflation, Hyperinflation And The Alchemy Of Risk

How US debt risks dollar doomsday

Pento - Love Affair With Inflationary Policies To End in Disaster

Gold Shakes Off $1.24 Billion ‘Fat Finger’

Still, not everyone agreed Monday’s slip in gold was caused by a keystroke error. Chuck Retzky, director of futures sales for Mizuho Securities USA, said that silver prices suffered a similar leg down at the same time as gold, tumbling 35 cents to $30.805 a troy ounce, but other markets like Treasurys, currencies and stocks were unperturbed.
“To do it both in gold and silver tells me that it wasn’t a trade done in error,” Retzky said. 

BIS FX/Gold "Intervention" Profiles - Before And After

It looks like Monsieur Charoze has been busy covering his tracks--er, his job title on his LinkedIn profile.

London to become major offshore trading center for Chinese Yuan.

The significance of this otherwise ordinary press release is far-reaching--especially as it relates to the USDollar as a global reserve currency.  This sets the stage for a dump of the USDollar and US Treasury bonds at any point in time.
"The fact that China will open its third yuan offshore market in London is a strategic decision for the world's second-largest economy to increase the convertibility of the yuan and evolve the yuan into a reserve currency globally," said David Wang, executive director of the Royal Bank of Scotland (China) Co Ltd.

Dr. Zijlstra's Final Settlement: Gold as the Monetary Cosmos' Sun

This book by a former central banker gives further credence to the "conspiracy theory" that the gold market is manipulated.