Eric Sprott makes a good point. When depositors lose money, it's not just John Q. Public being looted. It's also corporations and institutions doing business in that specific country. CFO's parking their company's treasury will perform their fiduciary duties and withdraw their funds into safer havens. The next question becomes where are these safe havens?
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/1_Sprott_-_A_Mega-Panic_Is_Coming_%26_Here_Is_The_Reason_Why.html
Friday, May 31, 2013
The 34 Words That May Have Caused Today's Crash In Stocks
A little truth serum from unlikely sources--bankers, tanks stocks.
http://www.zerohedge.com/news/2013-05-31/34-words-may-have-caused-todays-crash-stocks
http://www.zerohedge.com/news/2013-05-31/34-words-may-have-caused-todays-crash-stocks
Austerity About-Face: German Government to Gamble on Stimulus
The last hawks have caved to the doves. Inflation here we come.
http://www.spiegel.de/international/europe/german-government-to-test-stimulus-instead-of-austerity-a-901946.html
http://www.spiegel.de/international/europe/german-government-to-test-stimulus-instead-of-austerity-a-901946.html
Asia curbs US imports of wheat after genetically modified sample found
Those betting against inflation will lose.
http://www.guardian.co.uk/environment/2013/may/31/genetically-modified-wheat-us-monsanto
http://www.guardian.co.uk/environment/2013/may/31/genetically-modified-wheat-us-monsanto
Apple Raises Prices for Some Products in Japan on Yen
Sovereign countries devalue their currencies as an attempt to stimulate their exports. It's usually successful in the short-term, but the unintended consequences are higher import prices and inflation (despite official justification for mild inflation), which in the long run, dampens the economy. And when all countries engage in the "beggar-thy-neighbor" currency war of devaluation, international trade stalls, even when inflation rises. See Great Depression. See today.
http://www.bloomberg.com/news/2013-05-31/apple-raises-prices-for-some-products-in-japan-on-yen.html
http://www.bloomberg.com/news/2013-05-31/apple-raises-prices-for-some-products-in-japan-on-yen.html
Thursday, May 30, 2013
Believe it or not, washing a car with university water can be an NCAA violation
I'm glad the NCAA thought this was important enough to penalize.
http://sports.yahoo.com/blogs/ncaab-the-dagger/believe-not-washing-car-university-water-ncaa-violation-201607788.html
http://sports.yahoo.com/blogs/ncaab-the-dagger/believe-not-washing-car-university-water-ncaa-violation-201607788.html
David Morgan: "...we haven't found a bottom yet..." in gold & silver
David Morgan is short-term bearish on silver (after an expected relief rally into June), but long-term uber-bullish on silver, predicting $100+ silver prices. He also likes the mining shares even better, but warns that under-capitalized junior explorers may have to dilute existing shareholders to raise funding. He recommends miners who are current producers or who are on the cusp of producing.
http://youtu.be/6c-h-m0xbqI
http://youtu.be/6c-h-m0xbqI
Wednesday, May 29, 2013
Volcker Cautions Federal Reserve May ‘Fall Short’
Yes, the Volcker Alliance may stem from from noble intentions, and misguided naivete, but Volcker is still is spot on when it comes to sound monetary policy and controlling inflation--or more correctly, how inflation can get out of control.
http://www.bloomberg.com/news/2013-05-29/volcker-cautions-federal-reserve-may-fall-short-.html
http://www.bloomberg.com/news/2013-05-29/volcker-cautions-federal-reserve-may-fall-short-.html
Bank of France Seeking Yuan Liquidity Agreement for Euro Area
I've said it once, I've said it a trillion times: the USDollar is doomed as the global reserve currency. It will have to share that title (and responsibility) with other foreign currencies (and gold) going forward. China has already signed bilateral trade agreements with Brazil, Russia, Australia, and all its trading partners to set up the yuan as one of those reserve currencies--only the yuan will be backed by gold (as will the ruble, as both China and Russia are accumulating gold faster than Justin Bieber is piling up speeding tickets).
Why should you care whether the dollar remains the reserve currency, a privilege and perch it has enjoyed since 1944 with the establishment of the Bretton-Woods agreement? Because once dollar hegemony is lost, it will no longer be needed for international trade settlement (i.e. crude oil trade). Foreign countries holding vast USDollars and dollar-denominated assets (e.g. US Treasury bonds) will dump them en masse, tanking the dollar in the process. Import prices in the US will soar.
This, all thanks to the Fed QE'ing us into oblivion by printing trillions of dollars and pinning interest rates to zero (by the way, retirees on fixed incomes are thanking Bernanke for forcing them to eat dog food in their twilight years--which is one cut below the 48 million Americans on food stamps).
When will all this happen? Nobody knows. But Volcker is right: our whole economy is based on trust and confidence. The trust in government is already eroding. But once confidence in the dollar's store of value vanishes, the "CON" in confidence will be exposed.
Since we're talking about France here:
Le numéraire dollar n'est pas plus, mon frère.
http://www.bloomberg.com/news/2013-05-28/bank-of-france-seeking-yuan-liquidity-agreement-for-euro-area.html
Why should you care whether the dollar remains the reserve currency, a privilege and perch it has enjoyed since 1944 with the establishment of the Bretton-Woods agreement? Because once dollar hegemony is lost, it will no longer be needed for international trade settlement (i.e. crude oil trade). Foreign countries holding vast USDollars and dollar-denominated assets (e.g. US Treasury bonds) will dump them en masse, tanking the dollar in the process. Import prices in the US will soar.
This, all thanks to the Fed QE'ing us into oblivion by printing trillions of dollars and pinning interest rates to zero (by the way, retirees on fixed incomes are thanking Bernanke for forcing them to eat dog food in their twilight years--which is one cut below the 48 million Americans on food stamps).
When will all this happen? Nobody knows. But Volcker is right: our whole economy is based on trust and confidence. The trust in government is already eroding. But once confidence in the dollar's store of value vanishes, the "CON" in confidence will be exposed.
Since we're talking about France here:
Le numéraire dollar n'est pas plus, mon frère.
http://www.bloomberg.com/news/2013-05-28/bank-of-france-seeking-yuan-liquidity-agreement-for-euro-area.html
Asia gold demand to hit quarterly record, absorb ETF outflow-WGC
More evidence of the transfer of wealth from the West to the East. Citizens of England well understand "Brown's Bottom" when the former Prime Minister sold off the country's gold reserves at rock-bottom prices. The Fed and paper gold holders are doing the same.
http://www.reuters.com/article/2013/05/29/gold-demand-wgc-idUSL5N0E93U920130529?source=email_rt_mc_body
http://www.reuters.com/article/2013/05/29/gold-demand-wgc-idUSL5N0E93U920130529?source=email_rt_mc_body
Letter from "Steve" to the Volcker Alliance
“To whom it may concern:
I’m writing you in response to an article recently posted on Bloomberg regarding the Volcker Alliance’s efforts to investigate the lack of trust in our government and other democracies around the world.
I’m going to give you one big hint to start this all off. Mr. Volcker states in that article: “Trust in American government has been declining for decades and similar attitudes are evident in other democracies.”
If you all can actually look into this without bias or intellectual hubris and arrogance or making your determinations beforehand you will find a couple of things that are making people ABSOLUTLEY FURIOUS throughout the world.
1) Fractional reserve banking.
2) An impossible tax code run by the IR-SS. What’s coming next are uniforms and salutes to the supreme leader.
3) Crony capitalism. Fraud on an epic scale. Martha Stewart goes to jail for insider trading and now Jeff Skilling is going to be let out of jail early? HSBC is a criminal organization that is running money for drug lords and Eric Holder says we can’t even arrest a teller!!! Get a clue! Eric Holder will be absolved from his recent perjury charges as well. Watch. That’s the trust people have in this current “system”. Lying, fraud, cheating, embezzlement, racketeering, coercion, collusion price fixing, etc., all go unpunished while citizens of the world witness this and you are going to turn this into an academic endeavor many, many years too late. I’m sure I’ll be dead before I see reform.
Either that or collapse.
Here’s another lead for you, a quote from Senator Dick Durbin: “And the banks… they frankly own the place”. That inspires confidence. And we all know it’s true. Corporations can give unlimited amounts of money as an individual but cannot be prosecuted thus? Outrageous!
The real problem is that the “intellectuals” and political leaders of the world still have feudalistic thinking and believe that the common man doesn’t understand how the system works and all of their efforts are top down and we just have to sit around and wait for what’s coming. And we believe that what’s coming will serve the current status quo first. But in all your research don’t forget to look into things like the French Revolution when the common man was left out of the equation.
But perhaps your fact finding mission isn’t geared towards your stated purpose. Perhaps you are simply looking for ways that the world’s governments can manage the populace of the world given the current infrastructure and institutions… more of the same with a different veneer.
If that’s the case, I say good luck to you. You will fail.
Sincerely,
One very frustrated person”
I’m writing you in response to an article recently posted on Bloomberg regarding the Volcker Alliance’s efforts to investigate the lack of trust in our government and other democracies around the world.
I’m going to give you one big hint to start this all off. Mr. Volcker states in that article: “Trust in American government has been declining for decades and similar attitudes are evident in other democracies.”
If you all can actually look into this without bias or intellectual hubris and arrogance or making your determinations beforehand you will find a couple of things that are making people ABSOLUTLEY FURIOUS throughout the world.
1) Fractional reserve banking.
2) An impossible tax code run by the IR-SS. What’s coming next are uniforms and salutes to the supreme leader.
3) Crony capitalism. Fraud on an epic scale. Martha Stewart goes to jail for insider trading and now Jeff Skilling is going to be let out of jail early? HSBC is a criminal organization that is running money for drug lords and Eric Holder says we can’t even arrest a teller!!! Get a clue! Eric Holder will be absolved from his recent perjury charges as well. Watch. That’s the trust people have in this current “system”. Lying, fraud, cheating, embezzlement, racketeering, coercion, collusion price fixing, etc., all go unpunished while citizens of the world witness this and you are going to turn this into an academic endeavor many, many years too late. I’m sure I’ll be dead before I see reform.
Either that or collapse.
Here’s another lead for you, a quote from Senator Dick Durbin: “And the banks… they frankly own the place”. That inspires confidence. And we all know it’s true. Corporations can give unlimited amounts of money as an individual but cannot be prosecuted thus? Outrageous!
The real problem is that the “intellectuals” and political leaders of the world still have feudalistic thinking and believe that the common man doesn’t understand how the system works and all of their efforts are top down and we just have to sit around and wait for what’s coming. And we believe that what’s coming will serve the current status quo first. But in all your research don’t forget to look into things like the French Revolution when the common man was left out of the equation.
But perhaps your fact finding mission isn’t geared towards your stated purpose. Perhaps you are simply looking for ways that the world’s governments can manage the populace of the world given the current infrastructure and institutions… more of the same with a different veneer.
If that’s the case, I say good luck to you. You will fail.
Sincerely,
One very frustrated person”
Huge Rally Fuel in Place for Gold Futures
Long story not so short: the big commercials, normally permanently short COMEX gold, have reduced their net short positions to below record levels.
The momentum-trading hedge funds, have reduced their normally net long positions below record levels. But that's not due to them reducing their aggregate long positions--it's from hedgies piling on aggregate short positions.
Since the big commercials (gold mining producers, refineries, jewelers, bullion banks) represent the biggest money as well as usually being the most informed, we can deduce the current slide in gold prices is close to being exhausted. Meanwhile, the "hot" money hedge funds are betting on further declines.
Should a reversal occur, this sets up as a possible short squeeze scenario, where longs and short-covering sellers will bid up prices in a "buy first, ask questions later" competition.
When an asset is hated by the consensus, it's a contrarian indicator that a bottom reversal is imminent--much like when an asset is universally loved, the bursting of the bubble looms. Anybody remember the 1999 internet bubble or the subprime real estate bubble in 2006--when everybody and their brothers were pounding the table on NASDAQ stocks and flipping properties, respectively? How did that turn out? That's because the wrong people were giving the wrong advice at exactly the wrong time. The consensus was that you couldn't lose following what everybody else was already doing. Oops...
With gold and silver, it's hated by 99% of the population right now, pundits and laymen alike. To a contrarian, it's a dream set up for a huge short-covering rally. It's a lonely trade, but it's the right one--because it is lonely.
http://www.gotgoldreport.com/2013/05/huge-rally-fuel-in-place-for-gold-futures.html
The momentum-trading hedge funds, have reduced their normally net long positions below record levels. But that's not due to them reducing their aggregate long positions--it's from hedgies piling on aggregate short positions.
Since the big commercials (gold mining producers, refineries, jewelers, bullion banks) represent the biggest money as well as usually being the most informed, we can deduce the current slide in gold prices is close to being exhausted. Meanwhile, the "hot" money hedge funds are betting on further declines.
Should a reversal occur, this sets up as a possible short squeeze scenario, where longs and short-covering sellers will bid up prices in a "buy first, ask questions later" competition.
When an asset is hated by the consensus, it's a contrarian indicator that a bottom reversal is imminent--much like when an asset is universally loved, the bursting of the bubble looms. Anybody remember the 1999 internet bubble or the subprime real estate bubble in 2006--when everybody and their brothers were pounding the table on NASDAQ stocks and flipping properties, respectively? How did that turn out? That's because the wrong people were giving the wrong advice at exactly the wrong time. The consensus was that you couldn't lose following what everybody else was already doing. Oops...
With gold and silver, it's hated by 99% of the population right now, pundits and laymen alike. To a contrarian, it's a dream set up for a huge short-covering rally. It's a lonely trade, but it's the right one--because it is lonely.
http://www.gotgoldreport.com/2013/05/huge-rally-fuel-in-place-for-gold-futures.html
Tuesday, May 28, 2013
Germany sees "revolution" if welfare model scrapped
This Schaeuble guy sounds like a frenetic alarmist. Only problem is he is Germany's Finance Minister.
http://www.reuters.com/article/2013/05/28/us-europe-unemployment-idUSBRE94R0D320130528
http://www.reuters.com/article/2013/05/28/us-europe-unemployment-idUSBRE94R0D320130528
Got Wood? A Housing Recovery Built On Faith
Those hoping for a sustainable housing recovery haven't learned a damned thing about hot money chasing bubbles.
http://www.zerohedge.com/news/2013-05-28/got-wood-housing-recovery-built-faith
http://www.zerohedge.com/news/2013-05-28/got-wood-housing-recovery-built-faith
US Mint Resumes Selling One-Tenth Ounce Gold Coins... At A 40% Premium To Spot
I suspect some of you were skeptical when I was ranting about the
bifurcation between artificially suppressed paper prices and the prices
for physical gold and silver.
Some of you may have cynically passed it off as opportunistic coin dealers charging a high premium and talking their books, especially on silver when premiums soared to 30% above spot after the waterfall decline of paper silver in mid-April.
Guess what? Don't blame the dealers--it's the US Treasury Mint itself who is now charging a 40% premium on 1/10 oz. gold coins. The mints charge a premium to the wholesalers, who charge a premium to the retailers. The retail dealers' profit margin is minuscule, because after all, it's just money changing hands, not investments.
But when there is a physical shortage, market forces dictate that the suppliers can charge whatever they want. The US Treasury Mint is no different.
If you listen to today's financial media, Bloomberg News is once again profiling commodities "experts" demonizing gold. Meanwhile, their pals are loading up on the physical bullion--even while the ETF's are unloading paper gold--the virtual kind.
http://www.zerohedge.com/news/2013-05-28/us-mint-resumes-selling-one-tenth-ounce-gold-coins-40-premium-spot
Some of you may have cynically passed it off as opportunistic coin dealers charging a high premium and talking their books, especially on silver when premiums soared to 30% above spot after the waterfall decline of paper silver in mid-April.
Guess what? Don't blame the dealers--it's the US Treasury Mint itself who is now charging a 40% premium on 1/10 oz. gold coins. The mints charge a premium to the wholesalers, who charge a premium to the retailers. The retail dealers' profit margin is minuscule, because after all, it's just money changing hands, not investments.
But when there is a physical shortage, market forces dictate that the suppliers can charge whatever they want. The US Treasury Mint is no different.
If you listen to today's financial media, Bloomberg News is once again profiling commodities "experts" demonizing gold. Meanwhile, their pals are loading up on the physical bullion--even while the ETF's are unloading paper gold--the virtual kind.
http://www.zerohedge.com/news/2013-05-28/us-mint-resumes-selling-one-tenth-ounce-gold-coins-40-premium-spot
Well: we have good news - as of moments ago the US mint has once again restocked on the popular denomination (with a 20,000 production limit), and without a limit per household. The even better news: the coin will set you back just $195. This means a "tiny" 40% premium to spot.
Jim Rogers on CNBC - Get your Money out of the Banks! Reporter agreed
For those uninitiated, Jim Rogers is a billionaire hedge fund manager, who was once a partner with the more infamous George Soros.
http://youtu.be/UX8mfeB32j4
The Japanese Financial System Is Beginning To Spin Wildly Out Of Control
http://theeconomiccollapseblog.com/archives/the-japanese-financial-system-is-beginning-to-spin-wildly-out-of-control
News Reporting Compare And Contrast
I guess Bloomberg News knows more about Indian demand for gold than India does. The disinformation propaganda machine is in full force.
http://www.zerohedge.com/news/2013-05-28/news-reporting-compare-and-contrast
http://www.zerohedge.com/news/2013-05-28/news-reporting-compare-and-contrast
Monday, May 27, 2013
From paper reserves to gold reserves
This author does a good job of describing the coverage ratio: backing each currency unit with gold reserves. But what he doesn't address is that official gold reserves are over-stated, due to re-hypothecation. In layman terms, the gold holdings in central banks worldwide don't exist because they have been re-pledged, leased out, or outright sold off to multiple entities. The golden empire is naked.
http://www.goldmoney.com/gold-research/gabriel-m-mueller/from-paper-reserves-to-gold-reserves.html?gmrefcode=gata
http://www.goldmoney.com/gold-research/gabriel-m-mueller/from-paper-reserves-to-gold-reserves.html?gmrefcode=gata
Sunday, May 26, 2013
Saturday, May 25, 2013
Head of the IMF Christine Lagarde in court charged with embezzlement and fraud
First, Dominique Strauss-Kahn was accused of rape. Now, his replacement, Christine Lagarde is accused of embezzlement and fraud.
Here's the thing--whether they are guilty or not is irrelevant. The truth of the matter is they are being targeted despite being heads of the central bank of central banks, because they are offering resistance on endless money printing. Sure, all bankers want to print money endlessly, but they also have to voice the their concerns over what I call legalized counterfeiting because enough people are concerned. However, speak too loudly, and their peers get nervous.
The financial system is broken and on the verge of collapse, so the rats are pointing fingers at other rats in the sinking ship.
Here's the thing--whether they are guilty or not is irrelevant. The truth of the matter is they are being targeted despite being heads of the central bank of central banks, because they are offering resistance on endless money printing. Sure, all bankers want to print money endlessly, but they also have to voice the their concerns over what I call legalized counterfeiting because enough people are concerned. However, speak too loudly, and their peers get nervous.
The financial system is broken and on the verge of collapse, so the rats are pointing fingers at other rats in the sinking ship.
http://www.standard.co.uk/news/world/head-of-the-imf-christine-lagarde-in-court-charged-with-embezzlement-and-fraud-8628670.html
As the IRS and other scandals are telling us, nobody is immune to investigation--even if they are allies of the President. And it also goes to show you that the seemingly all-powerful central bankers are merely puppets in the big scheme of things. The financial elite pulling their strings behind the scenes will toss them aside and assassinate their characters, if they don't perform their jobs of printing trillions more.
The Keiser Report: Currency Wars and Devaluation
This is a great episode of The Keiser Report, where the hosts discuss how the global economy is drowning in central banking. Max Keiser then interviews Jim Rickards, the best-selling author of "Currency Wars", who suggests not only are western central banks and bullion banks suppressing
gold prices, but so are the Chinese, who are buyers of physical gold. While western central banks are printing trillions of currency units, the Chinese are accumulating gold at discount prices.
http://rt.com/shows/keiser-report/episode-449-max-keiser-731/
gold prices, but so are the Chinese, who are buyers of physical gold. While western central banks are printing trillions of currency units, the Chinese are accumulating gold at discount prices.
http://rt.com/shows/keiser-report/episode-449-max-keiser-731/
Cooking the Gold Books
http://dailyreckoning.com/cooking-the-gold-books/
That is, the “physical price” becomes much higher than the “paper price” on CNBC’s ticker. The catalyst, we suggested, would be when a major metals exchange defaults on a gold or silver contract — settling in cash, instead of metal.
Result: If you wanted real metal, you paid a substantial premium over the paper price. In silver, these premiums were off the charts. On Thursday, April 25, spot silver was $23.94… but a Silver Eagle from a major online dealer would set you back $29.54 — as high as the paper price before the mid-April crash!
Sprott Asset Management chief Eric Sprott believes Zero Hour is made inevitable by Western central banks “leasing” their gold to commercial banks at less than 1% a year. The commercial banks then sell that gold and plow the proceeds into higher-earning investments.
The data show that net exports from 1991-2012 totaled 5,504 tonnes.
Here’s the problem: During that same period, U.S. supply mine production and recycling totaled 7,532 tonnes, while demand was 6,517 tonnes. That left only 1,015 tonnes available for export.
Where did the other 4,489 tonnes come from? “The only U.S. seller that would be capable of supplying such an astonishing amount of gold,” says Mr. Sprott, “is the U.S. government, with a reported gold holding of 8,300 tonnes.”
“If the Sprott analysis is accurate,” says our friend and Crash Course author Chris Martenson, “there’s a lot of missing gold in the U.S. equation, and it had to come from official sources, either of U.S. origin or belonging to other countries. Either way, the leased gold represents a tremendous liability of the Fed and the bullion banks to which it was loaned.”
“In this context,” Mr. Martenson continues, “the gold slam begins to smell like an operation designed to shake as much gold as possible out of weak hands so that the bullion banks can begin to recover it to square up their accounts.
“GLD, the gold ETF that so many small investors participate in, is one large, obvious target,” he adds, “as it was sitting on 1,350 tonnes as of January 2013.”
“Gold and silver,” Mr. Martenson suggests, “are getting closer to the day when you or I will not be able to purchase physical bullion at any price.”
The endgame is getting closer. “What I believe is going to happen, probably in the not too distant future,” says Eric Sprott’s right-hand man John Embry, “is that the pricing mechanism of the gold and silver markets will swing to the physical market, which cannot be manipulated, because, basically, either you’ve got it or you haven’t.
But that’s when you won’t be able to get any metal at any price. Best act before then: “The current sell-off in gold,” says Eric Sprott, “should be viewed not with extreme trepidation, but as an unbelievable opportunity to buy the metal at an artificially low value.”
Chile freezes Barrick’s Pascua-Lama, orders ‘urgent measures’
These incidences will increase the cost of mining and the price of gold.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/chile-blocks-pascua-lama-mine-fines-barrick-for-environmental-violations/article12129034/
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/chile-blocks-pascua-lama-mine-fines-barrick-for-environmental-violations/article12129034/
Friday, May 24, 2013
Wednesday, May 22, 2013
Tuesday, May 21, 2013
Washington Signals Dollar Deep Concerns - Why the Fed Rigs the Bullion Market
This is a must-read by a former Assistant Secretary of the US Treasury. Thanks to Kitty for finding this article.
http://www.counterpunch.org/2013/05/20/washington-signals-dollar-deep-concerns/#.UZuXRhHRL70.facebook
http://www.counterpunch.org/2013/05/20/washington-signals-dollar-deep-concerns/#.UZuXRhHRL70.facebook
Monday, May 20, 2013
Plato quote
Strange times are these in which we live when old and young are
taught in falsehood’s school. And the one man who dares to tell the
truth is called at once a lunatic and fool. – Plato (429-347 BC)
Gold & Silver Smash & What Soros & Major Players Are Doing
The mainstream headline says George Soros is selling his GLD position.
http://www.bloomberg.com/news/2013-05-19/gold-bear-bets-reach-record-as-soros-cuts-holdings-commodities.html
Yet, underneath the surface, Soros is also doing this.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/20_Gold_%26_Silver_Smash_%26_What_Soros_%26_Major_Players_Are_Doing.html
Is he hedging? Absolutely. But he's betting, along with fellow heavyweights John Paulson and Stevie Cohen, that the gold miners--and by association, gold--will rise soon.
http://www.bloomberg.com/news/2013-05-19/gold-bear-bets-reach-record-as-soros-cuts-holdings-commodities.html
Yet, underneath the surface, Soros is also doing this.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/20_Gold_%26_Silver_Smash_%26_What_Soros_%26_Major_Players_Are_Doing.html
Is he hedging? Absolutely. But he's betting, along with fellow heavyweights John Paulson and Stevie Cohen, that the gold miners--and by association, gold--will rise soon.
Sunday, May 19, 2013
Mark Faber quote on dollars and gold
"You keep your dollars and I’ll keep my gold. Let’s see which goes to zero first." - Marc Faber
Saturday, May 18, 2013
Lord James Alleges 15 Trillion Fraud By Fed And EU Banks Involving 750,000 Tons Of Imaginary Gold
This is why HSBC was ordered to pay a $1.5 billion fine for money-laundering. The problem is it wasn't drug cartels they were laundering money for. It was the Fed, the US Treasury, too-big-to-fail banks, including in the US and in Europe.
http://beforeitsnews.com/economy/2013/05/lord-blackwell-alleges-15-trillion-fraud-by-fed-and-eu-banks-involving-750000-tons-of-imaginary-gold-2520544.html
http://beforeitsnews.com/economy/2013/05/lord-blackwell-alleges-15-trillion-fraud-by-fed-and-eu-banks-involving-750000-tons-of-imaginary-gold-2520544.html
Thursday, May 16, 2013
U.S. Housing Starts Sink 16.5% On Multifamily Drop
Housing bubble 2.0 is about to get popped.
http://www.foxbusiness.com/news/2013/05/16/us-housing-starts-sink-165-on-multifamily-drop/
http://www.foxbusiness.com/news/2013/05/16/us-housing-starts-sink-165-on-multifamily-drop/
U.S. administration looks to cut Iran’s access to gold
But, but, but,...I thought Ben Bernanke said gold was not money? It looks to me that gold is not only the soundest form of money, it's the ONLY form of money in Iran.
http://en.trend.az/regions/iran/2150940.html
http://en.trend.az/regions/iran/2150940.html
Golden Bullseye
http://dollarcollapse.com/precious-metals/the-golden-bullseye/
One of the lessons that gold bugs are learning, in the most painful way possible, is that you can’t trade a manipulated market. When big players with regulatory immunity can move an asset’s price — and can see resistance/support levels and moving averages just as clearly as anyone else — smaller traders don’t stand a chance.
In the gold-is-manipulated script, governments and their bullion bank proxies push the price to levels where they know hedge funds and other traders have stop-loss orders, which kick in and send the price careening lower. Then the manipulators buy back their short positions, thus gaining a two-fer: fleecing the flock for a nice profit, and crushing the spirits of stackers and preppers and regular folks who value honest money.
Which brings us to the following article, published by a major bullion dealer:
This might not happen, but if it doesn’t it will be because the bullion banks have had their fun and are now on the other side of the trade. But make no mistake, it’s their decision; in the short run this is their game.
Longer term, of course, is a very different story. Fundamentals always win eventually, and with the whole world on a borrow/print/lie-about-it binge, gold’s fundamentals just keep getting better. Excessive debt leads to currency war leads to soaring gold. And when the paper players are finally overrun by physical demand, the people who have been quietly accumulating bullion and high-quality mining stocks will barely remember this month’s drama.
One of the lessons that gold bugs are learning, in the most painful way possible, is that you can’t trade a manipulated market. When big players with regulatory immunity can move an asset’s price — and can see resistance/support levels and moving averages just as clearly as anyone else — smaller traders don’t stand a chance.
In the gold-is-manipulated script, governments and their bullion bank proxies push the price to levels where they know hedge funds and other traders have stop-loss orders, which kick in and send the price careening lower. Then the manipulators buy back their short positions, thus gaining a two-fer: fleecing the flock for a nice profit, and crushing the spirits of stackers and preppers and regular folks who value honest money.
Which brings us to the following article, published by a major bullion dealer:
The Golden Bull & Price Pullback GiftNow, for chartist in a normal market this picture would indeed imply a nice trade setup. But bullion bank traders can see this channel too, and for them it’s a bullseye. Just push gold through the bottom of the channel and a whole world of technicians who for some reason think their charts still have meaning will see that the up-channel has been broken, and, like good, dispassionate traders who cut their losses when they’re wrong, will sell their futures contracts, their GLD shares, and maybe their mining stocks, tacking yet another vertical drop onto this correction.
Rarely in bull markets do we see opportunities like the one being presented to silver and gold investors right now.
Silver & Gold spot prices are now retesting their recent low price points.
Current and favorable bull market fundamentals have not changed.
Below is a longterm view of gold’s bull market valuation channel over the past 15 years:
We view this current price pullback as a buying gift for gold and silver investors.
This might not happen, but if it doesn’t it will be because the bullion banks have had their fun and are now on the other side of the trade. But make no mistake, it’s their decision; in the short run this is their game.
Longer term, of course, is a very different story. Fundamentals always win eventually, and with the whole world on a borrow/print/lie-about-it binge, gold’s fundamentals just keep getting better. Excessive debt leads to currency war leads to soaring gold. And when the paper players are finally overrun by physical demand, the people who have been quietly accumulating bullion and high-quality mining stocks will barely remember this month’s drama.
Wednesday, May 15, 2013
ECB's Visco: negative deposit rates would be effective
What valuation model does one use in a negative interest rate environment? Whichever methodology is used, asset prices MUST fall with interest rates below zero. Check your equations.
http://uk.reuters.com/article/2013/05/13/uk-ecb-visco-depositrates-idUKBRE94C07E20130513
http://uk.reuters.com/article/2013/05/13/uk-ecb-visco-depositrates-idUKBRE94C07E20130513
US Government Begins BitCoin Crackdown
Governments have confiscated citizen's gold and silver in the past, because they are sound, competitive currencies to fiat money. Is it any surprise that the Feds cracked down on BitCoin, another competitive currency--although virtual in nature?
http://www.zerohedge.com/news/2013-05-15/us-government-begins-bitcoin-crackdown
http://www.zerohedge.com/news/2013-05-15/us-government-begins-bitcoin-crackdown
Tuesday, May 14, 2013
Monday, May 13, 2013
Sunday, May 12, 2013
Saturday, May 11, 2013
Why You Should Avoid GLD and SLV ETP's
Many of you have read my rants on why one should avoid the GLD, SLV
and other precious metals ETP's (aka ETF's). This letter by Kaye to
his investors goes into some details on the mechanics of why they're
Ponzi schemes.
http://www.gata.org/files/
Bottom line: while GLD and SLV are convenient trading vehicles designed to track spot prices (which they are doing a poor job of, as the ETP prices are below already depressed spot prices relative to physical markets), investors are exposed to counterparty risk and will not be able to redeem their shares for physical precious metals--unless they have significant holdings--and even then there is risk if the ETP's are drained of their physical inventory, as is happening right now. You can see the relative performances as ETF prices < spot prices < physical prices. It's simple math and why you should buy physical coins and bars and avoid paper gold and paper silver. Paper assets were designed by bullion banks to cheat investors out of their physical assets.
http://www.gata.org/files/
Bottom line: while GLD and SLV are convenient trading vehicles designed to track spot prices (which they are doing a poor job of, as the ETP prices are below already depressed spot prices relative to physical markets), investors are exposed to counterparty risk and will not be able to redeem their shares for physical precious metals--unless they have significant holdings--and even then there is risk if the ETP's are drained of their physical inventory, as is happening right now. You can see the relative performances as ETF prices < spot prices < physical prices. It's simple math and why you should buy physical coins and bars and avoid paper gold and paper silver. Paper assets were designed by bullion banks to cheat investors out of their physical assets.
See disclaimers in the side bar.
The Obama Administration's Natural Gas Policy Is Tragically Misguided
I agree with Martenson's assessment. Exporting natural gas may be profitable short-term, but it mortgages America's future.
The North Sea oil boom has been beneficial to Norway, because they have been methodically and strategically extracting oil at a pace to maintain the country's positive balance of trade, while keeping Norway solvent and still full of crude oil reserves.
The British, on the other hand, have exploited their natural resources by pumping out so much oil so fast that they have depleted their golden goose. The outcomes are completely disparate: a prosperous nation vs. a broken one.
http://www.peakprosperity.com/blog/81839/obama-administrations-natural-gas-policy-tragically-misguided
The North Sea oil boom has been beneficial to Norway, because they have been methodically and strategically extracting oil at a pace to maintain the country's positive balance of trade, while keeping Norway solvent and still full of crude oil reserves.
The British, on the other hand, have exploited their natural resources by pumping out so much oil so fast that they have depleted their golden goose. The outcomes are completely disparate: a prosperous nation vs. a broken one.
http://www.peakprosperity.com/blog/81839/obama-administrations-natural-gas-policy-tragically-misguided
Friday, May 10, 2013
Japanese Government Bonds Halted Limit Down; Yields Spike To 10 Week High; Worst Day In 5 Years
This is the beginning of the end for Japan, Inc,: the collapse of Japan's government bond market.
http://www.zerohedge.com/news/2013-05-10/japanese-government-bonds-halted-limit-down-yields-spike-10-week-high-worst-day-5-ye
http://www.zerohedge.com/news/2013-05-10/japanese-government-bonds-halted-limit-down-yields-spike-10-week-high-worst-day-5-ye
Thursday, May 9, 2013
Wednesday, May 8, 2013
Tuesday, May 7, 2013
China’s Gold Purchases From Hong Kong Expand to Record
China and India are buying the $hit out of physical gold. This is probably the 1000th time I've blogged about it. Yet, if you watch the western media outlets, gold's days are numbered. I laugh.
http://www.bloomberg.com/news/2013-05-07/china-s-gold-purchases-from-hong-kong-expand-to-record-in-march.html
http://www.bloomberg.com/news/2013-05-07/china-s-gold-purchases-from-hong-kong-expand-to-record-in-march.html
James Turk - Extraordinary Delays For Physical Gold & Silver
This is great insight by James Turk. Search for the words "backwardation" or "contango" in this blog to grasp the tightness in the physical markets.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/7_James_Turk_-_Extraordinary_Delays_For_Physical_Gold_%26_Silver.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/7_James_Turk_-_Extraordinary_Delays_For_Physical_Gold_%26_Silver.html
An Update On Gold From CIGA Bo Polny
http://www.jsmineset.com/2013/05/07/an-update-on-gold-from-ciga-bo-polny/
May 2-3 was to mark a short term high. If you check the price of gold you will see it did! Gold’s daily time clock from the rise off the April 15, 2013 low ended May 3, 2013.
The next date, May 10-13 is to mark the low off the May 2-3 high for both gold and silver.
With regards to silver, this is a time for extreme caution! What is next? May 9-10, 2013… the drop!
The question is how low will it go? The bottom comes in either Friday May 10, 2013 or Monday May 13, 2013. Will support at $22 hold or not? That is the big question. Again until May 13, 2013 has passed, silver is extremely vulnerable to a support break!
Gold’s low will hold due to its impressive rise since its bottom April 15, 2013.
5 reasons why US States are keen to return to sound money
http://www.24hgold.com/english/news-gold-silver-5-reasons-why-us-states-are-keen-to-return-to-sound-money.aspx?article=4360113540G10020&redirect=false&contributor=Jan+Skoyles
As Eric Sprott so eloquently explained last year, ‘we are compelled to review the facts: Europe is currently experiencing severe bank runs, budgets in virtually every western country on the planet are out of control, the banking system is running excessive leverage and risk, the costs of servicing the ever-increasing amounts of government debt are rising rapidly, and the economies of Europe, Asia and the United States are slowing down or are in full contraction. There’s no sugar coating it and we have to stop listening to politicians and central planners who continue to downplay, obfuscate and flat out lie about the current economic reality… NOTHING the central bankers have done up to this point has WORKED.’
As Alan Greenspan wrote, “Gold and freedom are inseparable. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. Gold stands as the protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
Bernanke's Neofeudal Rentier Economy
http://charleshughsmith.blogspot.com/2013/05/bernankes-neofeudal-rentier-economy.html
The Fed has directly created a neofeudal rentier economy and society. Giving the financier class unlimited access to free credit with which to buy rentier assets serves two purposes: 1) it drives the valuations of rentier assets ever higher, creating the useful (in terms of propaganda and perception management) illusion of economic vitality, and 2) it greatly enriches the financier class at the expense of the bottom 95%.Goebbels would approve of the Fed's masterful propaganda campaign: rob the bottom 95% to benefit the financier class, all the while piously proclaiming that its policies were aimed at increasing employment for the bottom 95%.In terms of propagandistic chutzpah, it doesn't get any better than this. Congratulations, Bernanke, Yellen, et al.
China rejects Pentagon charges of military espionage
China is denying they are engaging in cyber espionage. Obviously, they are lying about it. But do you honestly believe the US military and intelligence community isn't engaging in cyber espionage as well? We have two superpowers being deceitful about spying on each other--one by denial and one by misdirecting omission.
http://www.reuters.com/article/2013/05/07/us-usa-defense-china-idUSBRE94511720130507
http://www.reuters.com/article/2013/05/07/us-usa-defense-china-idUSBRE94511720130507
Schedules of Controlled Substances: Placement of Lorcaserin into Schedule IV
This is long-delayed, but good news for Arena Pharmaceuticals longs.
http://www.ofr.gov/OFRUpload/OFRData/2013-10895_PI.pdf
It's in the Office of the Federal Register Special Filing here:
http://ofr.gov/%28X%281%29S%282zvyweytxpfeflhvvipmdl0f%29%29/inspection.aspx?AspxAutoDetectCookieSupport=1#reg_D
http://www.ofr.gov/OFRUpload/OFRData/2013-10895_PI.pdf
It's in the Office of the Federal Register Special Filing here:
http://ofr.gov/%28X%281%29S%282zvyweytxpfeflhvvipmdl0f%29%29/inspection.aspx?AspxAutoDetectCookieSupport=1#reg_D
Akshaya Tritiya and Dhanteras dates
Akshaya Tritiya falls on May 13 this year, and Dhanteras (first day of Diwali) falls on November 1. These are key dates for gold-buying Indians. Also, the wedding season is in full bloom.
Embry - This Is How Close We Are To Total Collapse
At least you can't blame John Embry for lacking conviction.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_Embry_-_This_Is_How_Close_We_Are_To_Total_Collapse.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_Embry_-_This_Is_How_Close_We_Are_To_Total_Collapse.html
Monday, May 6, 2013
Richard Russell quote on Goldman Sachs Short Call on Gold
Mighty Goldman Sachs even got into the act by predicting
publicly that gold was headed lower, and hinting that gold might even be
a short candidate. The newspapers and the media in general jumped on
the ‘we hate gold’ bandwagon. It was unanimous. ‘Gold is a worthless
relic of prehistoric times. If you own it, get rid of it, before you
lose your shirt.’ But after the crash Goldman suddenly rescinded its
bearish forecast on gold, and the gold-hating propaganda calmed down. …
Actually when Goldman dropped their bearish forecast on gold, I assumed
that Goldman had bought all the gold that they wanted. Net result, a
good many of the big boys plus many central banks grabbed all the gold
they desired at bargain prices. The great gold panic ended with a thud,
and the big money got what they wanted—all at fire sale prices. –Richard Russell in DOW THEORY LETTERS(May 1)
The Global Run On Silver & What It Means Going Forward
This essay on the difference between silver and paper currencies is
brilliant due to its simplicity. It clarifies the two functions of
silver: as a medium of exchange and a store of value. If I sound
redundant, it's because people may hear it, but they aren't
internalizing it. Perhaps after reading this piece, they will finally
put this debate to rest. Own the physical.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_The_Global_Run_On_Silver_%26_What_It_Means_Going_Forward.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_The_Global_Run_On_Silver_%26_What_It_Means_Going_Forward.html
Sunday, May 5, 2013
Saturday, May 4, 2013
What bullion dealers are saying about gold demand
This article is a good scan for physical precious metals dealers and the current shortages in bullion coins and bars. It's interesting that near the end of the article, the author mentions rising premiums in physical gold prices, but she doesn't mention the much larger rise in silver premiums. I question whether the omission was accidental or intentional.
http://www.marketwatch.com/story/what-bullion-dealers-are-saying-about-gold-demand-2013-05-03
http://www.marketwatch.com/story/what-bullion-dealers-are-saying-about-gold-demand-2013-05-03
China’s Real Gold-Reserves At 4,000 Tonnes?
The speculation that China's official gold reserves are much higher than reported is old news to gold bugs following people like Jim Rickards, best-selling author of "Currency Wars." For the rest of you, this will be a good primer.
http://www.bullionbullscanada.com/gold-commentary/26166-chinas-real-gold-reserves-at-4000-tonnes
http://www.bullionbullscanada.com/gold-commentary/26166-chinas-real-gold-reserves-at-4000-tonnes
China Set to Become World’s #2 in Gold Reserves?
China's been pretty transparent about their plans to accumulate gold. The US media has not been reporting it, which isn't surprising--considering this signals the demise of the USDollar as the reserve currency of the world. The dollar will collapse, along with our savings and purchasing power.
http://www.goldalert.com/2012/11/china-set-to-become-worlds-2-in-gold-reserves/
http://www.goldalert.com/2012/11/china-set-to-become-worlds-2-in-gold-reserves/
Friday, May 3, 2013
JPMorgan Caught in Swirl of Regulatory Woes
If I'm such a conspiracy theorist, how did I predict Blythe Masters of JPMorgan would be investigated by federal authorities--3 years before it is actually materializing?
http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/
http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/
Middle-Aged Suicide Rate Surges
A good friend of mine brought these unfortunate statistics up yesterday.
http://www.zerohedge.com/news/2013-05-03/middle-aged-suicide-rate-surges
http://www.zerohedge.com/news/2013-05-03/middle-aged-suicide-rate-surges
Blythe Masters' Crowning Achievement: The Credit Default Swap
Here's more on our lady Blythe Masters.
http://www.zerohedge.com/news/2013-05-03/blythe-masters-crowning-achievement-credit-default-swap
http://www.zerohedge.com/news/2013-05-03/blythe-masters-crowning-achievement-credit-default-swap
U.S. investigators say JPMorgan "manipulated" power trading-NYT
Ah, that name Blythe Masters of JPMorgan keeps popping up (click here for other blog entries mentioning Blythe Masters, the doyenne of JPMorgan's commodities trading desk), this time for manipulating the energy markets. Manipulating LIBOR and energy may be (now) understandable, but manipulating the COMEX and London gold and silver exchanges is impossible--the realm of conspiracy theories and nut jobs, right?
Not only is she a central player in the manipulation of commodities and futures markets (including equities, foreign currencies, and interest rates--which essentially means JPMorgan and its too-big-to jail banking peers manipulate all markets--see Matt Taibbi's latest rant), she was also one of the architects for that beautiful man-made, financial thermonuclear invention: credit derivatives. You know, the structured investment vehicles that almost plunged the world economy back to the stone age in 2008, and will some day de-industrialize the first world. Warren Buffett dubbed them the "financial weapons of mass destruction" (it is strange that Buffett uses them in his mergers and acquisitions, as hypocrisy has no bounds among octogenarian billionaires).
Again, it takes a British paper to provide whistle-blowing commentary on American bankers, and it'll take US regulators to fine British bankers on LIBOR manipulation. Where is CNBC and Bloomberg on this breaking story? Hell, even the New York Times is all over this. Somehow I don't sympathize with any of the characters involved.
http://www.reuters.com/article/2013/05/03/jpmorgan-ferc-idUSL3N0DK0EV20130503
Not only is she a central player in the manipulation of commodities and futures markets (including equities, foreign currencies, and interest rates--which essentially means JPMorgan and its too-big-to jail banking peers manipulate all markets--see Matt Taibbi's latest rant), she was also one of the architects for that beautiful man-made, financial thermonuclear invention: credit derivatives. You know, the structured investment vehicles that almost plunged the world economy back to the stone age in 2008, and will some day de-industrialize the first world. Warren Buffett dubbed them the "financial weapons of mass destruction" (it is strange that Buffett uses them in his mergers and acquisitions, as hypocrisy has no bounds among octogenarian billionaires).
Again, it takes a British paper to provide whistle-blowing commentary on American bankers, and it'll take US regulators to fine British bankers on LIBOR manipulation. Where is CNBC and Bloomberg on this breaking story? Hell, even the New York Times is all over this. Somehow I don't sympathize with any of the characters involved.
http://www.reuters.com/article/2013/05/03/jpmorgan-ferc-idUSL3N0DK0EV20130503
Thursday, May 2, 2013
Rule - What investors Should Do With Their Money Right Now
The title of this article should be renamed "what questions should investors be asking now?"
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/2_Rule_-_What_investors_Should_Do_With_Their_Money_Right_Now.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/2_Rule_-_What_investors_Should_Do_With_Their_Money_Right_Now.html
Wednesday, May 1, 2013
Yamada - 3 Absolutely Incredible Gold Charts & Commentary
The recent lows in gold may or may not hold short- to mid-term. But longer-term, Yamada suggests gold has much higher to run.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/2_Yamada_-_3_Absolutely_Incredible_Gold_Charts_%26_Commentary.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/2_Yamada_-_3_Absolutely_Incredible_Gold_Charts_%26_Commentary.html
Gold ETP Holdings Cap Record Drop as $17.9 Billion Wiped Out
Yet, demand for paper gold is down (see previous blog entry about another Bloomberg article reporting soaring demand for physical gold). It's interesting to note which analysts are bearish on gold and their stated reasons. One can decipher which firms are part of the anti-gold propaganda machine based on their comments.
http://www.bloomberg.com/news/2013-04-30/gold-etp-holdings-cap-record-drop-wiping-17-9-billion-in-assets.html
http://www.bloomberg.com/news/2013-04-30/gold-etp-holdings-cap-record-drop-wiping-17-9-billion-in-assets.html
Decoupling In Precious Metals Markets
I have blogged numerous times about the decoupling of prices between the paper precious metals markets versus the physical markets. Folks, it is already here.
http://www.bullionbullscanada.com/gold-commentary/26158-decoupling-in-precious-metals-markets
http://www.bullionbullscanada.com/gold-commentary/26158-decoupling-in-precious-metals-markets
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