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Thursday, February 28, 2013
Silver Demand Surges To Record For February
http://www.zerohedge.com/news/2013-02-28/silver-demand-surges-record-february
Wednesday, February 27, 2013
Tuesday, February 26, 2013
No Way Fed Will Stop Easing: Jim Rickards
Must-see video of Jim Rickards. Watch the full 21-minute clip--you won't be disappointed.
http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards_1
http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards_1
Fed Faces Explaining Billion-Dollar Losses in QE Exit Stress
Ah, finally some truth serum coming out of Congress and Fed Chairman Bernanke: if interest rates rise (i.e. bond yields rise), the Fed's QE program of purchasing Treasuries and mortgage-backed securities automatically becomes a "buy high, sell low" program, which would of course, induce massive losses on the Fed's balance sheet--and eventual insolvency. We posted this in 2011 here and in 2012 here.
See, Chairman Bernanke: money doesn't grow on trees. And oh, by the way, for this and other reasons, there will be no Fed exit on monetary stimulus. Because if that were to occur, the global banking system collapses. But hey, let's discuss it so the gold bugs won't go crazy, shall we?
http://www.businessweek.com/news/2013-02-26/fed-faces-explaining-billion-dollar-losses-in-stress-of-qe3-exit
See, Chairman Bernanke: money doesn't grow on trees. And oh, by the way, for this and other reasons, there will be no Fed exit on monetary stimulus. Because if that were to occur, the global banking system collapses. But hey, let's discuss it so the gold bugs won't go crazy, shall we?
http://www.businessweek.com/news/2013-02-26/fed-faces-explaining-billion-dollar-losses-in-stress-of-qe3-exit
Monday, February 25, 2013
Waking Dreams End Unpleasantly
This is brilliant analysis on the head fakes being thrown to the masses by the power elite and banking cartel.
http://www.alt-market.com/articles/1356-waking-dreams-end-unpleasantly
http://www.alt-market.com/articles/1356-waking-dreams-end-unpleasantly
At Least They Are Finally Honest
http://www.zerohedge.com/news/2013-02-21/least-they-are-finally-honest
From remarks by the Dick Fisher of the Dallas Fed:
Thank you for the admission, oh FOMC member. And to think just 4 years ago anyone accusing the Fed of using its "invisible hand" and doing everything in its power to solely focus on the stock market was labeled a "conspiracy theory" crackpot. One wonders what other "conspiracy theories" will be admitted by the Fed as fact in another four short years?
- The Fed has artificially sustained markets
Why Investors Around The World Must Move Into Gold & Silver
Fitzwilson's analysis of cash and debt instruments is financial genius. If you don't understand it by now, you probably never will, and it would be too difficult for others to try to explain it better than he has. But suffice it to say that his best-case scenario for returns on US Treasury bonds is nil, and that cash will perform even worse, as it has for the last 100 years since the Federal Reserve Bank was created.
In other words, cash is trash. Gold and silver are the currencies of last resort, as they have held their value for 6000 years.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/26_Why_Investors_Around_The_World_Must_Move_Into_Gold_%26_Silver.html
In other words, cash is trash. Gold and silver are the currencies of last resort, as they have held their value for 6000 years.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/26_Why_Investors_Around_The_World_Must_Move_Into_Gold_%26_Silver.html
America's Tragic Future In One Parabolic Chart
Methinks the parabola is going to become even steeper than these projections.
http://www.zerohedge.com/news/2013-02-23/americas-tragic-future-one-parabolic-chart
http://www.zerohedge.com/news/2013-02-23/americas-tragic-future-one-parabolic-chart
Friday, February 22, 2013
Negative Articles During Gold's Bull Market
Gold has doubled in price since the 2008/2009 timeframe. Yet, the consensus continues to be bearish.
June 2008
http://money.cnn.com/2008/06/20/markets/thebuzz/index.htm
Dec 2011
http://www.forbes.com/sites/joshuabrown/2011/12/19/the-trouble-with-gold/
June 2010
http://www.cnbc.com/id/37570769/Why_US_Investors_Should_Not_Buy_Gold_Strategist
Oct 2009
http://www.daveramsey.com/article/dont-buy-gold-sell-it/lifeandmoney_other/
Oct 2009
http://www.zerohedge.com/article/five-reasons-avoid-gold-rush
Sept 2009
http://financialhighway.com/gold-%E2%80%93-bad-investment-3-reasons-why-i-don%E2%80%99t-buy-bullion/
Oct 2010
http://money.cnn.com/2010/10/18/pf/investing/buffett_ben_stein.fortune/index.htm
Sept 2010
http://finance.fortune.cnn.com/2010/09/29/the-case-against-gold/
June 2008
http://money.cnn.com/2008/06/20/markets/thebuzz/index.htm
Dec 2011
http://www.forbes.com/sites/joshuabrown/2011/12/19/the-trouble-with-gold/
June 2010
http://www.cnbc.com/id/37570769/Why_US_Investors_Should_Not_Buy_Gold_Strategist
Oct 2009
http://www.daveramsey.com/article/dont-buy-gold-sell-it/lifeandmoney_other/
Oct 2009
http://www.zerohedge.com/article/five-reasons-avoid-gold-rush
Sept 2009
http://financialhighway.com/gold-%E2%80%93-bad-investment-3-reasons-why-i-don%E2%80%99t-buy-bullion/
Oct 2010
http://money.cnn.com/2010/10/18/pf/investing/buffett_ben_stein.fortune/index.htm
Sept 2010
http://finance.fortune.cnn.com/2010/09/29/the-case-against-gold/
Wednesday, February 20, 2013
Tuesday, February 19, 2013
Monday, February 18, 2013
Norway Enters The Currency Wars
Norway possesses one of the most stable, strongest currencies, due to its budget surplus from energy exports. Which is precisely why they are manipulating their krone to join the growing currency wars in a devaluation race to the bottom.
http://www.zerohedge.com/news/2013-02-17/norway-enters-currency-wars
http://www.zerohedge.com/news/2013-02-17/norway-enters-currency-wars
Changes in FDIC Deposit Insurance Coverage
http://www.fdic.gov/deposit/deposits/changes.html
December 31, 2012
As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act expired on December 31, 2012. Deposits held in noninterest-bearing transaction account are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $250,000.
Shanghai Gold Exchange Benchmark Contract Volume Jumps to Record
The Chinese continue to BTFD. You should be, too.
http://www.bloomberg.com/news/2013-02-18/shanghai-gold-exchange-benchmark-contract-volume-jumps-to-record.html
http://www.bloomberg.com/news/2013-02-18/shanghai-gold-exchange-benchmark-contract-volume-jumps-to-record.html
Misstep in gun bill could defeat the effort
http://seattletimes.com/html/localnews/2020373291_westneat17xml.html
Forget police drones flying over your house. How about police coming inside, once a year, to have a look around?
As Orwellian as that sounds, it isn’t hypothetical. The notion of police home inspections was introduced in a bill last week in Olympia.
In other words, come into homes without a warrant to poke around. Failure to comply could get you up to a year in jail.
“I’m a liberal Democrat — I’ve voted for only one Republican in my life,” Palmer told me. “But now I understand why my right-wing opponents worry about having to fight a government takeover.”
He added: “It’s exactly this sort of thing that drives people into the arms of the NRA.”
I have been blasting the NRA for its paranoia in the gun-control debate. But Palmer is right — you can’t fully blame them, when cops going door-to-door shows up in legislation.
Don’t Blink, or You’ll Miss Another Bailout
Pardon my French, but they're all f***ing crooks in suits.
http://www.nytimes.com/2013/02/17/business/dont-blink-or-youll-miss-another-bank-bailout.html?_r=1&
http://www.nytimes.com/2013/02/17/business/dont-blink-or-youll-miss-another-bank-bailout.html?_r=1&
Friday, February 15, 2013
Hollande Tiptoes Toward Raid on Pensions With EU Pressure
And so the predictable becomes probable: expect more pensions to be raided. Don't believe for a second that only French pensioners are at risk. Every over-indebted government will go after pensions.
When convicted bank robber Willie Sutton was asked why he robbed banks, his alleged response was, "because that's where the money is."
http://www.bloomberg.com/news/2013-02-14/hollande-tiptoes-toward-raid-on-pensions-under-pressure-from-eu.html
When convicted bank robber Willie Sutton was asked why he robbed banks, his alleged response was, "because that's where the money is."
http://www.bloomberg.com/news/2013-02-14/hollande-tiptoes-toward-raid-on-pensions-under-pressure-from-eu.html
Gold Bears Braced for U.S. to China Growth Recovery: Commodities
The experts are telling us to sell. Time to buy.
http://www.sfgate.com/business/bloomberg/article/Gold-Bears-Braced-for-U-S-to-China-Growth-4281607.php
http://www.sfgate.com/business/bloomberg/article/Gold-Bears-Braced-for-U-S-to-China-Growth-4281607.php
Thursday, February 14, 2013
Wednesday, February 13, 2013
Deflation: Making Sure "It" Doesn't Happen Here - Ben Bernanke
Anticipating Fed monetary policies are key to formulating investment theses. The link below is a peak into Fed Chairman Ben Bernanke's thoughts on fighting deflation before he became Chairman. It serves as a road map for policies the Fed has since deployed to counteract the financial crisis, including Quantitative Easing (purchase of Treasury bonds and mortgage-backed securities) and Operation Twist (selling short-term Treasuries and buying long-term Treasury bonds). See the excerpt below on FDR's dollar devaluation when he confiscated gold in 1933 (emphasis in boldface is mine).
For those with time constraints, the key take away is the Fed's monetary policies are inherently inflationary, and explicitly devalue the USDollar. In other words, as long as these policies are in place, gold--priced in dollars, can only go up.
Contrast that to new Treasury Secretary nominee Jack Lew's declaration that the US Treasury will maintain its "strong dollar policy." Whatever.
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
For those with time constraints, the key take away is the Fed's monetary policies are inherently inflationary, and explicitly devalue the USDollar. In other words, as long as these policies are in place, gold--priced in dollars, can only go up.
Contrast that to new Treasury Secretary nominee Jack Lew's declaration that the US Treasury will maintain its "strong dollar policy." Whatever.
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
The conclusion that deflation is always reversible under a fiat money system follows from basic economic reasoning. A little parable may prove useful: Today an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
Of course, the U.S. government is not going to print money and distribute it willy-nilly (although as we will see later, there are practical policies that approximate this behavior). Normally, money is injected into the economy through asset purchases by the Federal Reserve. To stimulate aggregate spending when short-term interest rates have reached zero, the Fed must expand the scale of its asset purchases or, possibly, expand the menu of assets that it buys. Alternatively, the Fed could find other ways of injecting money into the system--for example, by making low-interest-rate loans to banks or cooperating with the fiscal authorities. Each method of adding money to the economy has advantages and drawbacks, both technical and economic. One important concern in practice is that calibrating the economic effects of nonstandard means of injecting money may be difficult, given our relative lack of experience with such policies. Thus, as I have stressed already, prevention of deflation remains preferable to having to cure it. If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a deflation.
So what then might the Fed do if its target interest rate, the overnight federal funds rate, fell to zero? One relatively straightforward extension of current procedures would be to try to stimulate spending by lowering rates further out along the Treasury term structure--that is, rates on government bonds of longer maturities. There are at least two ways of bringing down longer-term rates, which are complementary and could be employed separately or in combination. One approach, similar to an action taken in the past couple of years by the Bank of Japan, would be for the Fed to commit to holding the overnight rate at zero for some specified period. Because long-term interest rates represent averages of current and expected future short-term rates, plus a term premium, a commitment to keep short-term rates at zero for some time--if it were credible--would induce a decline in longer-term rates. A more direct method, which I personally prefer, would be for the Fed to begin announcing explicit ceilings for yields on longer-maturity Treasury debt (say, bonds maturing within the next two years). The Fed could enforce these interest-rate ceilings by committing to make unlimited purchases of securities up to two years from maturity at prices consistent with the targeted yields. If this program were successful, not only would yields on medium-term Treasury securities fall, but (because of links operating through expectations of future interest rates) yields on longer-term public and private debt (such as mortgages) would likely fall as well.
The Fed can inject money into the economy in still other ways. For example, the Fed has the authority to buy foreign government debt, as well as domestic government debt. Potentially, this class of assets offers huge scope for Fed operations, as the quantity of foreign assets eligible for purchase by the Fed is several times the stock of U.S. government debt.
Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it's worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934. The economy grew strongly, and by the way, 1934 was one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's devaluation.
Fiscal Policy
Each of the policy options I have discussed so far involves the Fed's acting on its own. In practice, the effectiveness of anti-deflation policy could be significantly enhanced by cooperation between the monetary and fiscal authorities. A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money.
Of course, in lieu of tax cuts or increases in transfers the government could increase spending on current goods and services or even acquire existing real or financial assets. If the Treasury issued debt to purchase private assets and the Fed then purchased an equal amount of Treasury debt with newly created money, the whole operation would be the economic equivalent of direct open-market operations in private assets.
Tuesday, February 12, 2013
Monday, February 11, 2013
Must Watch Video: Is the NDAA Lawsuit Headed to the Supreme Court?
http://libertyblitzkrieg.com/2013/02/07/must-watch-video-is-the-ndaa-lawsuit-headed-to-the-supreme-court/
Yesterday, oral arguments began in front of this aforementioned higher court; the 2nd Circuit. As Chris Hedges states in the interview below, if they win the case then it will likely be brought in front of the Supreme Court within weeks. On the other hand, if the Obama Administration wins and the Supreme Court refuses to hear the appeal, Hedges states: “at that point we’ve just become a military dictatorship.”
Friday, February 8, 2013
Blast From The Past - 6 Years Ago Today...
A brief reminder on how wrong the pundits on CNBC were, cheerleading a rally in 2007--right before the financial collapse.
http://www.zerohedge.com/news/2013-02-08/blast-past-6-years-ago-today
http://www.zerohedge.com/news/2013-02-08/blast-past-6-years-ago-today
Wednesday, February 6, 2013
Tim Geithner Potential Book Titles
This is hilarious. Many creative types out there.
https://twitter.com/search?q=%23geithnerbooktitles
https://twitter.com/search?q=%23geithnerbooktitles
At Odds With the Government, Japan’s Central Bank Chief Offers an Early Exit
Inflation and higher commodities prices are now baked into the cake.
http://www.nytimes.com/2013/02/06/business/global/japanese-central-bank-chief-to-step-down-early.html?_r=1&
http://www.nytimes.com/2013/02/06/business/global/japanese-central-bank-chief-to-step-down-early.html?_r=1&
Tuesday, February 5, 2013
Virginia in the Vanguard
My fellow lunatic fringe bloggers' endorsement of a gold standard is gaining legitimacy. Look out Keynesians: your days are numbered.
http://www.nysun.com/editorials/virginia-in-the-vanguard/88184/
http://www.nysun.com/editorials/virginia-in-the-vanguard/88184/
Monday, February 4, 2013
India to take baby steps towards gold-linked products
This is further evidence that the status quo central bankers are trying to artificially curb demand for physical gold. It might work temporarily, but market forces will overrun these controls as long as the corrupt central banks themselves keep printing currency units with no end in sight. The masses see the writing on the wall with inflationary pressures, so are only taking logical action: buying gold for self-preservation.
Even if demand for gold is temporarily curbed, Indian citizens will turn to silver as another means of protecting their purchasing power. Will the Indian government raise import taxes on silver also? It's typical whack-a-mole economists running around with their heads cut off. They don't realize if they just stopped their interventionist tactics and did nothing, the global economy would eventually heal itself and correct imbalances. Instead, activist central banks only distort markets and create unintended asset bubbles, attempting to usurp market forces which will eventually come back to haunt them.
http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U20130201
Even if demand for gold is temporarily curbed, Indian citizens will turn to silver as another means of protecting their purchasing power. Will the Indian government raise import taxes on silver also? It's typical whack-a-mole economists running around with their heads cut off. They don't realize if they just stopped their interventionist tactics and did nothing, the global economy would eventually heal itself and correct imbalances. Instead, activist central banks only distort markets and create unintended asset bubbles, attempting to usurp market forces which will eventually come back to haunt them.
http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U20130201
U.S. to sue S&P over ratings ahead of financial crisis
If the US government is going to sue Standard & Poor's for NOT doing their job in failing to downgrade mortgage-backed bonds in 2007, will the US government also sue S & P for DOING their job in downgrading US Treasury debt?
http://ca.reuters.com/article/businessNews/idCABRE9130U120130204
http://ca.reuters.com/article/businessNews/idCABRE9130U120130204
Quantitative Easing and Gold Price
This quote must be examined for its content and context. The content is self-evident. The context includes knowledge that Barron's is a sister publication of the Wall Street Journal, the preeminent financial periodical. They are the voice of the status quo power structure, the bible of financial publications.
Wall Street is traditionally anti-gold. Yet, this quote.
"As long as we have unlimited quantitative easing, we have the potential for unlimited gains in the gold price." –Fred Hickey, "Stirring Things Up", Online.Barrons.com, February 2, 2013.
Wall Street is traditionally anti-gold. Yet, this quote.
"As long as we have unlimited quantitative easing, we have the potential for unlimited gains in the gold price." –Fred Hickey, "Stirring Things Up", Online.Barrons.com, February 2, 2013.
It’s Coming: The Government Wants to “Help Manage” Retirement Accounts
The exact same thought as Michael Krieger's entered my mind when I read this article about the US government "managing" retirement accounts.
http://libertyblitzkrieg.com/2013/02/02/its-coming-the-government-wants-to-help-manage-retirement-accounts/
http://libertyblitzkrieg.com/2013/02/02/its-coming-the-government-wants-to-help-manage-retirement-accounts/
Greek seamen, farmers protest against government cuts
Greece is about to enter complete chaos.
http://www.reuters.com/article/2013/02/03/us-greece-strike-idUSBRE91207O20130203
http://www.reuters.com/article/2013/02/03/us-greece-strike-idUSBRE91207O20130203
Saturday, February 2, 2013
Friday, February 1, 2013
CREDIT SUISSE: THE GOLD ERA IS COMING TO AN END
I like to give both sides of the story, so here is a bearish case for gold. Warren Buffett and his partner Charlie Munger said gold is worthless. I happen to disagree, but we need to be fair.
http://www.businessinsider.com/credit-suisse-the-beginning-of-the-end-of-the-gold-era-2013-2#us-interest-rates-fell-to-a-historic-low-level-last-year-this-represents-an-extreme-level-of-safe-haven-seeking-thanks-to-existential-concerns-about-the-essence-of
http://www.businessinsider.com/credit-suisse-the-beginning-of-the-end-of-the-gold-era-2013-2#us-interest-rates-fell-to-a-historic-low-level-last-year-this-represents-an-extreme-level-of-safe-haven-seeking-thanks-to-existential-concerns-about-the-essence-of
QB Projects Shadow Gold Price To Be $15,000 In One Year!
Paul Brodsky's call may be early, but he certainly makes a strong case for his price target.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/31_QB_Projects_Shadow_Gold_Price_To_Be_%2415%2C000_In_One_Year!.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/31_QB_Projects_Shadow_Gold_Price_To_Be_%2415%2C000_In_One_Year!.html
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