Friday, August 30, 2013
Gold Market Now Very Close To Issuing A Major “Buy” Signal
Saut is a good technical trader. He buys when prices move above daily moving averages (and resistance). He won't catch the exact bottoms or tops, but his indicators are good at capturing the majority of a big trend, and his indicators are saying the trend in gold has turned up.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/29_Gold_Market_Now_Very_Close_To_Issuing_A_Major_Buy_Signal.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/29_Gold_Market_Now_Very_Close_To_Issuing_A_Major_Buy_Signal.html
Thursday, August 29, 2013
India might buy gold from citizens to ease rupee crisis
Firstly, India has a severe current account deficit because they import more goods and services than they export (see the US, UK, Japan). As long as the country spends above their means, they will continue to run a deficit. Secondly, Indian citizens are importing gold in record amounts due to the Rupee rapidly losing its currency exchange value from the government's overspending. This should sound familiar to most western developed economies.
Indians are merely buying gold to protect their purchasing power against a sinking currency, issued by an increasingly profligate sovereign currency printing press. The public has been doing this for centuries, as the country has been afflicted by incompetent and corrupt governments since recorded history. Buying gold for Indians is beyond cultural--it's in their DNA.
Due to prodding from the Fed and Bank of England, the Indian government has attempted to discourage the importation of gold by its citizens, but raising the import tax five times to 10% has not deterred citizens from importing gold. If anything, the government's strategy has backfired, as soaring demand has been met by record smuggling.
It is indeed tragically sad that India's government is attempting to impoverish its own citizens due to pressure from central bankers in the UK and the US. Apparently, India still acts like a British colony.
http://www.reuters.com/article/2013/08/29/us-india-economy-gold-idUSBRE97S0IW20130829
Indians are merely buying gold to protect their purchasing power against a sinking currency, issued by an increasingly profligate sovereign currency printing press. The public has been doing this for centuries, as the country has been afflicted by incompetent and corrupt governments since recorded history. Buying gold for Indians is beyond cultural--it's in their DNA.
Due to prodding from the Fed and Bank of England, the Indian government has attempted to discourage the importation of gold by its citizens, but raising the import tax five times to 10% has not deterred citizens from importing gold. If anything, the government's strategy has backfired, as soaring demand has been met by record smuggling.
It is indeed tragically sad that India's government is attempting to impoverish its own citizens due to pressure from central bankers in the UK and the US. Apparently, India still acts like a British colony.
http://www.reuters.com/article/2013/08/29/us-india-economy-gold-idUSBRE97S0IW20130829
NAR Finally Admits Rising Rates Crippling Housing
Real estate bubble 2.0 is about to burst.
http://www.zerohedge.com/news/2013-08-28/nar-finally-admits-rising-rates-crippling-housing
http://www.zerohedge.com/news/2013-08-28/nar-finally-admits-rising-rates-crippling-housing
Financial Times: "World Is Doomed To An Endless Cycle Of Bubble, Financial Crisis And Currency Collapse
This is why I've been an avid reader of zero hedge. They are always years ahead of mainstream media outlets in exposing the truth.
http://www.zerohedge.com/news/2013-08-28/financial-times-world-doomed-endless-cycle-bubble-financial-crisis-and-currency-coll
http://www.zerohedge.com/news/2013-08-28/financial-times-world-doomed-endless-cycle-bubble-financial-crisis-and-currency-coll
Wednesday, August 28, 2013
The Fed is Insolvent
USDollar hegemony is ending. US Treasury holders are dumping Treasuries and buying hard assets. Especially the Chinese, who are snapping up productive agricultural land, securing energy resources, buying mining assets, and physical precious metals.
As buyers of gold, you are also competing against 3 billion peasants in Asia.
https://stjosephusa.com/article-fed-insolvent.php
As buyers of gold, you are also competing against 3 billion peasants in Asia.
https://stjosephusa.com/article-fed-insolvent.php
Royal Canadian Mint 2013 Second Quarter report
"This is the first quarter in the Mint’s history that revenue has exceeded CAN$1 billion. The significant improvement was driven primarily by bullion demand. The fragile stability of the European economy and hesitant recovery in the U.S. combined with the decline in the gold price throughout the quarter to drive demand for the Mint’s bullion products to unprecedented volumes.""The volume of Gold Maple Leaf (GML) sales increased 144% to 403,000 ounces compared to 165,000 ounces in the same period in 2012. Sales of Silver Maple Leaf (SML) coins increased to 6.4 million ounces from 4.0 million ounces in the same period last year, which is a 60% increase.""During the twenty-six weeks (H1) ended June 29, 2013, sales of GML coins increased 123% to 664,000 ounces while sales of SML coins increased 53% to 12.1 million ounces." - Royal Canadian Mint
Tuesday, August 27, 2013
Japan's 2014 Debt Interest Costs Rise 14% To Record $257 Billion, Same As Singapore GDP
It's about to be game over for Japan, Inc. if bond yields keep rising. It's just a matter of time.
http://www.zerohedge.com/news/2013-08-27/japans-2014-debt-interest-rise-record-257-same-singapore-gdp
http://www.zerohedge.com/news/2013-08-27/japans-2014-debt-interest-rise-record-257-same-singapore-gdp
Monday, August 26, 2013
BIS FX/Gold "Intervention" Profiles - Before And After
Nah, gold is NOT a currency and there's no way the gold markets are manipulated--right? Ooops, I guess gold IS a currency, and it IS "intervened" by the BIS, the central bank of central banks.
The Emperor has no clothes and IT is slowly being de-robed.
http://www.zerohedge.com/news/bis-fxgold-intervention-profiles-and-after
The Emperor has no clothes and IT is slowly being de-robed.
http://www.zerohedge.com/news/bis-fxgold-intervention-profiles-and-after
The Recession That Never Ended: 2008 -2013 (and Counting)
http://charleshughsmith.blogspot.com/2013/08/the-recession-that-never-ended-2008.html
None of these charts is remotely expansionary. We can further question broad-based measures of expansion such as GDP statistically: in economies with high income/wealth inequality such as the U.S., the top 5%'s expansion of income and wealth creates an illusion that the entire workforce is doing better when the opposite is true.
In other words, huge leaps in the income and wealth of the top 5% mask the decline of income and wealth of the bottom 95%. Average all wealth and income and it appears that the economy is expanding to the benefit of all, when it fact only the top 5% have escaped the recession; the recession never ended for the bottom 95%.
An even better way to create an illusory expansion is to simply not measure trends that would reveal a deepening recession.
Is an economy in which people in their 30s cannot find full-time work or afford to buy a house a non-recessionary economy?
The reality is that the recession never ended for 95% of U.S. households, and by many metrics the recession has deepened. The trick is to not measure those metrics; what isn't measured doesn't exist, especially recession.
Soybean, Corn, And Wheat Prices Are Surging
Crops would be a good store of value also, but they rot. A barrel of crude oil would be a good hedge against inflation and USDollar debasement also, but it's difficult (as well as dangerous and probably illegal) to store in your garage--and you can't put it in your pocket and bug out if the $hit were to hit the fan.
Stick with gold and silver coins and bars.
http://www.zerohedge.com/news/2013-08-26/soybean-corn-and-wheat-prices-are-surging
Stick with gold and silver coins and bars.
http://www.zerohedge.com/news/2013-08-26/soybean-corn-and-wheat-prices-are-surging
Sunday, August 25, 2013
China, Japan Sell Most US Paper In Years; Foreign Treasury Holdings At 2013 Lows
China and Japan are dumping US Treasuries, which is what we predicted, and is disconcerting enough. What's more disturbing is the composition of their dumping--short-term bills. Because without big buyers of short-term paper, the Fed will need to step up their status as buyer of last resort. Which takes any talk of "tapering" off the table.
US Treasury bond buyers are fleeing, and without the Fed propping up bond purchases, expect yields to spike and said bond prices to flop. Ooops, already happening...
Junk bonds: the US Treasury can't live with them, and they can't live without them. The problem is I wasn't referring to high-yielding corporate bonds--I was inferring US Treasury bonds themselves.
The uproar in 2011 over the downgrading of US Treasury bonds was misplaced. The downgrade should have been even steeper.
http://www.zerohedge.com/news/2013-08-15/china-japan-sell-most-us-paper-years-foreign-treasury-holdings-2013-lows
US Treasury bond buyers are fleeing, and without the Fed propping up bond purchases, expect yields to spike and said bond prices to flop. Ooops, already happening...
Junk bonds: the US Treasury can't live with them, and they can't live without them. The problem is I wasn't referring to high-yielding corporate bonds--I was inferring US Treasury bonds themselves.
The uproar in 2011 over the downgrading of US Treasury bonds was misplaced. The downgrade should have been even steeper.
http://www.zerohedge.com/news/2013-08-15/china-japan-sell-most-us-paper-years-foreign-treasury-holdings-2013-lows
Zero Hedge tweet
The Plunge Protection Team will undoubtedly be working overtime this weekend.
Only levels that matter AAPL over $500, DJIA over 15,000, gold under 1400
— zerohedge (@zerohedge) August 23, 2013
Benoit Gilson: Head of Foreign Exchange and Gold
http://www.bis.org/careers/profile_gilson.htm
Profile: Benoît Gilson
Position: Head of Foreign Exchange & GoldThe BIS is a really special place to work because it is a link between the markets and the central banks. This means that I can work in the markets, as I was doing before, while taking a central bank perspective. I find it very interesting to talk to the central bankers who call us for advice, information and market liquidity summary, and I love having a foot in both camps.
As we act as market-makers for BIS products in currencies and gold, we maintain relationships with all market counterparties to ensure sufficient liquidity for our customers and appropriate hedging instruments. We are focused on central banks and international institutions, helping them implement foreign exchange interventions, build their reserves, diversify their portfolios or modify their reserve currency allocation. We can also help them to manage their gold reserves. Of course, many of the issues we deal with are highly confidential, so discretion is very important.
Working here has many advantages in terms of lifestyle. While you don't earn the kind of huge bonuses you could in London, you get exposure to some of the most interesting people in the industry. The selection process here is pretty tough, so you automatically have good people around you and can get involved in some challenging debates.
I have to say that I really enjoy Basel too. I was working in Luxembourg before, which was another wonderful small city. In Basel, I can go home and be running alongside the Rhine and watching the sun set in 10 minutes. And, of course, you often encounter your colleagues out and about, which fosters a very friendly working environment. The senior managers here go out of their way to be accessible, so if you see them in the supermarket you can be sure that they'll have a chat with you.
What Now Lies Ahead Is A Terrifying Panic & Collapse
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/25_What_Now_Lies_Ahead_Is_A_Terrifying_Panic_%26_Collapse.html
Printing and currency debasement has never worked and it never will. What lies ahead is a chaotic collapse of any asset reliant upon the integrated web of fiat money creation. Most people refer to it as hyperinflation of prices. In our mind, it makes more sense to refer to it as hyper-devaluation of paper currencies -- an instantaneous, hyperbolic collapse relative to real assets. As was reiterated this week, gold is not going up, the currencies are going down with increasing volatility and speed.
Gold, silver and the companies that mine the metals have clearly bottomed. We are finally on the same side of the table as the people doing the manipulation. The existing supplies of metal have been nearly exhausted. Substantially higher prices await. It will likely be orderly in the short-term, but then explosive to the upside as panic buying of gold, silver and mining shares develops.
Christine Legarde quote on Europe
"The latest numbers that we have received, in particular from Germany, are encouraging, whether it's manufacturing, whether it's service activity, whether it's exports. That is heading in the right direction, but it needs to be sustained over time. And I'm crossing fingers for the Eurozone...- Christine Legarde, IMF Managing Director
Wow. Hope and prayer is a great strategy for the biggest economic zone in the world.
Internet Architects Plan Counter-Attack On NSA Snooping
Basic Physics: for every action, there is reaction.
http://www.zerohedge.com/news/2013-08-24/internet-architects-plan-counter-attack-nsa-snooping
http://www.zerohedge.com/news/2013-08-24/internet-architects-plan-counter-attack-nsa-snooping
American Dream: Move Out of Mom's Basement--and Rent from Blackstone
The new American Dream is to one day be able to move out of your parent's basement and rent from Blackstone.
— Michael Krieger (@LibertyBlitz) August 22, 2013
IMF chief Christine Lagarde warns of QE tapering risks
In other words, Christine Lagarde is saying we need indefinite QE, despite jawboning by the Fed about tapering or ending QE. This confirms my conviction that QE will never end. Because even if the Fed "tapers" purchasing of US Treasuries and mortgage-backed securities, this alone will tank both bond and equity markets--thereby necessitating an acceleration of QE later on. This will destroy what little credibility central banks have left.
By the way, Lagarde has to toe the party line--ginning up the printing press, and maintaining rhetoric of USDollar hegemony. Because once she goes off the reservation, she will be unceremoniously stripped of her title as IMF Managing Director, as her predecessor Dominique Straus-Kahn was. Only in her case, they'll have to come up with other allegations than raping hotel chambermaids.
QE to infinity, bitchez.
http://www.telegraph.co.uk/finance/economics/10263597/IMF-chief-Christine-Lagarde-warns-of-QE-tapering-risks.html
By the way, Lagarde has to toe the party line--ginning up the printing press, and maintaining rhetoric of USDollar hegemony. Because once she goes off the reservation, she will be unceremoniously stripped of her title as IMF Managing Director, as her predecessor Dominique Straus-Kahn was. Only in her case, they'll have to come up with other allegations than raping hotel chambermaids.
QE to infinity, bitchez.
http://www.telegraph.co.uk/finance/economics/10263597/IMF-chief-Christine-Lagarde-warns-of-QE-tapering-risks.html
Saturday, August 24, 2013
All Eyes on South Africa
If I were to handicap the possibility of a labor strike amongst the labor unions working in South African gold mines next week, I'd place the odds at greater than 50%. The wage concessions between management and the workers are too far apart to come to a quick resolution, after three months of negotiations.
Last year's negotiations were acrimonious and later turned deadly as police clashed with striking unions. Prices for platinum and gold increased by double digits as the strikes stretched out.
While South Africa is no longer the dominant gold producer as it was several decades ago, they still are the world's fourth largest producer. High-grade ore finds have dissipated, so mines have gone deeper--and working conditions have become more dangerous, partially fueling higher wage demands.
With rising global demand and decreased supply, the current supply shortage will become more acute if production from South Africa is removed. Couple that with typical increased seasonal demand from religious holidays and wedding seasons, and we could see rising prices of precious metals amplified by supply disruptions.
http://www.sprottgroup.com/thoughts/articles/all-eyes-on-south-africa/
Last year's negotiations were acrimonious and later turned deadly as police clashed with striking unions. Prices for platinum and gold increased by double digits as the strikes stretched out.
While South Africa is no longer the dominant gold producer as it was several decades ago, they still are the world's fourth largest producer. High-grade ore finds have dissipated, so mines have gone deeper--and working conditions have become more dangerous, partially fueling higher wage demands.
With rising global demand and decreased supply, the current supply shortage will become more acute if production from South Africa is removed. Couple that with typical increased seasonal demand from religious holidays and wedding seasons, and we could see rising prices of precious metals amplified by supply disruptions.
http://www.sprottgroup.com/thoughts/articles/all-eyes-on-south-africa/
Friday, August 23, 2013
1987 REDUX
http://www.theburningplatform.com/?p=59523
Let’s see. Consumers are carrying more debt than they did in 2007. Corporations are carrying more debt than they did in 2007. The Federal government is carrying 60% more debt than it did in 2007. Cities and States are carrying more debt than they did in 2007. Interest rates have jumped by 80% in the last three months. The economy is clearly in recession, as retailer after retailer reports horrific results. Stocks are as overvalued as they were in 1929, 2000, and 2007. China is experiencing a real estate collapse. Japan is experiencing a cultural/economic/societal collapse. The Middle East is awash in blood. The European Union is held together by lies, delusion and false promises.
What could possibly go wrong?
Pentagon Prepares for Cruise Missile Attack on Syria: CBS News
BREAKING. @CBSNews has learned that the Pentagon is making the initial preparations for a Cruise missile attack on Syrian government forces
— Charlie Kaye (@CharlieKayeCBS) August 23, 2013
Biggest Banks Face Moody’s Cuts as U.S. Support Ebbs
The media and Obama are telling us the economy is recovering, jobs are being created, stock markets are at all-time highs, real estate is recovering, and the banking system is recapitalized.
Not so fast--even Obama-apologist Bloomberg News is revealing things are not so rosy with the banking system. The economic cheerleaders will be proven wrong--again.
http://www.bloomberg.com/news/print/2013-08-22/moody-s-mulls-downgrade-of-biggest-banks-as-u-s-support-wanes.html
Not so fast--even Obama-apologist Bloomberg News is revealing things are not so rosy with the banking system. The economic cheerleaders will be proven wrong--again.
http://www.bloomberg.com/news/print/2013-08-22/moody-s-mulls-downgrade-of-biggest-banks-as-u-s-support-wanes.html
The Federal Deposit Insurance Corp.’s favored approach for winding down banks in a crisis, known as single-point-of-entry, may lead to higher recoveries for bondholders by keeping operating units open, Fanger said. Firms may be required to hold a minimum amount of debt, which also could help recoveries because losses would be spread among more investors, he said."Losses spread among more investors" is code-speak for depositors will also take a haircut.
There would be “more bondholders to share the burden,” Fanger said.
Cyprus Bank’s Bailout Hands Ownership to Russian Plutocrats
Yes, the Russians gain a banking and military foothold in the Mediterranean, something they've coveted for years. But the price to depositors was horrific.
http://www.nytimes.com/2013/08/22/world/europe/russians-still-ride-high-in-cyprus-after-bailout.html?nl=todaysheadlines&emc=edit_th_20130822&_r=0
http://www.nytimes.com/2013/08/22/world/europe/russians-still-ride-high-in-cyprus-after-bailout.html?nl=todaysheadlines&emc=edit_th_20130822&_r=0
The March bailout hammered bank creditors and depositors in an early test of what has since become the official European Union policy of “bailing-in” banks. The policy is intended to force creditors and depositors to pay for a bank’s mistakes and to spare taxpayers from picking up the entire bill.
Moscow, though furious over the billions lost by Russians in Cypriot banks, still sees Cyprus as a prize worth courting. The Russian government has pushed for access for its military aircraft to an air base in Paphos and for its warships to Cypriot ports.
Depositors with large accounts in Laiki Bank were initially left with just 100,000 euros each, about $130,000, and the rest of their money was confiscated as the bank shut down. Those with more than 100,000 euros in the Bank of Cyprus lost access to 90 percent of their cash, although they have since been promised future access to some of their frozen funds.
At that time, bailout-weary Northern European countries wanted not so much to rescue the banking sector here as to significantly shrink it, and end what they viewed as its reliance on suspect money from the former Soviet Union. A confidential report by the German foreign intelligence agency, known by its German initials as the B.N.D., painted the island as a haven for money-laundering.
The bank’s former shareholders, meanwhile, have been mostly wiped out. The biggest was a Russian tycoon, Dmitry Rybolovlev, who at one point owned a nearly 10 percent stake and, if he had substantial deposits in the bank, would be among the new shareholders. A spokesman for Mr. Rybolovlev declined to comment on his current position.But most of the now largely worthless old shares are in the hands of Cypriots who bought them as a safe, blue-chip investment.The Bank of Cyprus is a “zombie bank,” said Theodore Panayotou, director of the Cyprus International Institute of Management.“It is ironic,” Mr. Olympios added. “The Germans tried to get rid of Russian money and they ended up with a shareholder structure stacked with Russian oligarchs."
Billionaire Sprott - How Investors Can Make 3,000% In 1 Year!
Yes, Sprott is talking his book, as he has vested interests in physical precious metals and mining shares, but one can't argue with his track record.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/23_Billionaire_Sprott_-_How_Investors_Can_Make_3%2C000_In_1_Year!.html
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/23_Billionaire_Sprott_-_How_Investors_Can_Make_3%2C000_In_1_Year!.html
The Line Every Gold Trader Is Watching
I'm not a gold trader--other than buying the dips. I'm an accumulator of physical bullion. But for those with a bent for trading, gold just blew through its 100-day moving average, which indicates a bullish break out above major resistance. The train may have left the station for those waiting for a correction.
For those who never purchased precious metals, good luck to you. You're going to need it when the dollar loses its reserve currency status.
http://www.zerohedge.com/news/2013-08-22/line-every-gold-trader-watching
For those who never purchased precious metals, good luck to you. You're going to need it when the dollar loses its reserve currency status.
http://www.zerohedge.com/news/2013-08-22/line-every-gold-trader-watching
Household income below end-of-recession
This report is correct in exposing US household incomes are dropping. But it also assumes the GDP figures are accurate in declaring the Great Recession ended in June, 2009. This recession did not end four years ago and it is ongoing today.
http://www.cnbc.com/id/100980411
http://www.cnbc.com/id/100980411
Thursday, August 22, 2013
Gold Bugs Index
Sentiment indicators for the gold sector hit all-time lows in late June, plummeting to zero in one survey. Guess when the bottom in the gold price was reached?
http://blog.kimblechartingsolutions.com/2013/08/200-rallies-have-taken-place-twice-off-this-price-line/
http://blog.kimblechartingsolutions.com/2013/08/200-rallies-have-taken-place-twice-off-this-price-line/
West Nears Edge Of A Cliff As Central Planners Ensure Collapse
Enclosed is a good expose on how the Fed is not only inducing inflation domestically, but how the US is exporting inflation of food prices globally. This is the number one cause for social unrest and riots in poorer countries.
Food represents 5 - 15% of the average US household budget. When food prices rise, we complain. However, in third world countries, food may represent up to 85% of household income. When food prices rise there, they literally starve. They don't have credit cards to get them through the end of the month.
Scale and relativity are important concepts, because while those under the poverty line in America can be well-fed due to social welfare programs like SNAP (food stamps), the average income in third world households might be $2/day.
They are not rioting in the streets, risking getting shot and killed by their own governments merely to protest evil dictatorships. They aren't interested in following the American democracy model either, despite the US media portraying that talking point (and justifying military "intervention"). They merely want to put food on the table.
As long as the Fed, the ECB, Bank of Japan, Bank of England, and all highly leveraged central banks continue to create trillions of currency units worldwide, the poorest will continue to suffer the greatest due to rising food prices. The US and United Nations can literally trigger the collapse of a poorer country by starving the citizens out. This is one of the insidious tenets of US foreign policy that the media continues to ignore.
Of course, the captured media will use events of charitable aid as propaganda to show the world how the developed economies are there to help the poor, huddled masses. But the truth is the western world is competing with China to secure energy resources, whether it means diverting oil fields (Iraq, Syria, Iran), or protecting potential oil tanker choke holds in the Suez Canal (Egypt) or the Strait of Hormuz (Iran). This means no-fly zones, providing weapons to a shifting allied and extreme base (see al-Qaeda in Syria), or direct military intervention if desired outcomes aren't achieved.
One of the desired outcomes is to collapse the economies of the countries in question. This is the surest way to bring down the leadership of said countries, opening the door of opportunity for "aid." And the best way to create social unrest is to artificially kindle inflation of food prices.
While the mainstream media may tout easy monetary and zero-interest rate policies as "stimulative" to the economy, the actual reasons are primarily two-fold: 1) save the insolvent banking system from collapsing, and 2) mask the global inflationary aspects of infinite QE. Pinning interest rates to zero provides a cover for profligate money printing, as markets are temporarily induced into discounting future inflation.
The operative word is "temporarily" because fiat counterfeiting schemes never end well.
A third reason for QE is to create a bid for US Treasury bonds in a market where foreign participants (bond investors) are abandoning Treasuries for hard assets. China is now a net seller of Treasuries as they see the persistent debasement of the USDollar (currency and inflation risks), and the increasing insolvency of the US government (credit risk).
And as I predicted, if bond yields continue to rise in a macro environment of a global currency war, bond holders also face interest rate risk (and conversely, declining bond prices).
In lieu of buying US Treasury bonds, China and other sovereign wealth funds are investing in energy companies, producing farmland, infrastructure plays in mineral extraction, and of course, gold.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/22_West_Nears_Edge_Of_A_Cliff_As_Central_Planners_Ensure_Collapse.html
Food represents 5 - 15% of the average US household budget. When food prices rise, we complain. However, in third world countries, food may represent up to 85% of household income. When food prices rise there, they literally starve. They don't have credit cards to get them through the end of the month.
Scale and relativity are important concepts, because while those under the poverty line in America can be well-fed due to social welfare programs like SNAP (food stamps), the average income in third world households might be $2/day.
They are not rioting in the streets, risking getting shot and killed by their own governments merely to protest evil dictatorships. They aren't interested in following the American democracy model either, despite the US media portraying that talking point (and justifying military "intervention"). They merely want to put food on the table.
As long as the Fed, the ECB, Bank of Japan, Bank of England, and all highly leveraged central banks continue to create trillions of currency units worldwide, the poorest will continue to suffer the greatest due to rising food prices. The US and United Nations can literally trigger the collapse of a poorer country by starving the citizens out. This is one of the insidious tenets of US foreign policy that the media continues to ignore.
Of course, the captured media will use events of charitable aid as propaganda to show the world how the developed economies are there to help the poor, huddled masses. But the truth is the western world is competing with China to secure energy resources, whether it means diverting oil fields (Iraq, Syria, Iran), or protecting potential oil tanker choke holds in the Suez Canal (Egypt) or the Strait of Hormuz (Iran). This means no-fly zones, providing weapons to a shifting allied and extreme base (see al-Qaeda in Syria), or direct military intervention if desired outcomes aren't achieved.
One of the desired outcomes is to collapse the economies of the countries in question. This is the surest way to bring down the leadership of said countries, opening the door of opportunity for "aid." And the best way to create social unrest is to artificially kindle inflation of food prices.
While the mainstream media may tout easy monetary and zero-interest rate policies as "stimulative" to the economy, the actual reasons are primarily two-fold: 1) save the insolvent banking system from collapsing, and 2) mask the global inflationary aspects of infinite QE. Pinning interest rates to zero provides a cover for profligate money printing, as markets are temporarily induced into discounting future inflation.
The operative word is "temporarily" because fiat counterfeiting schemes never end well.
A third reason for QE is to create a bid for US Treasury bonds in a market where foreign participants (bond investors) are abandoning Treasuries for hard assets. China is now a net seller of Treasuries as they see the persistent debasement of the USDollar (currency and inflation risks), and the increasing insolvency of the US government (credit risk).
And as I predicted, if bond yields continue to rise in a macro environment of a global currency war, bond holders also face interest rate risk (and conversely, declining bond prices).
In lieu of buying US Treasury bonds, China and other sovereign wealth funds are investing in energy companies, producing farmland, infrastructure plays in mineral extraction, and of course, gold.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/22_West_Nears_Edge_Of_A_Cliff_As_Central_Planners_Ensure_Collapse.html
Richard Russell - America In Trouble As Gold War Rages
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/20_Richard_Russell_-_America_In_Trouble_As_Gold_War_Rages.html
Speaking of gold, I was amazed that there was absolutely no mention of gold's brilliant performance last week in Barron's or any other newspaper.
Evidently, nobody wanted to even mention gold's upside breakout. Just a complete silence on gold -- amazing. When gold was falling, it was the talk of the town.
Bitcoin recognized by Germany as 'private money'
Pretty soon, Bitcoin will be a better store of value than the USDollar.
http://www.cnbc.com/id/100971898
http://www.cnbc.com/id/100971898
Gold flows from Britain to Switzerland surge in H1-Macquarie
http://www.reuters.com/article/2013/08/19/gold-uk-exports-macquarie-idUSL6N0GK2M920130819
Britain's gold exports to Switzerland surged in the first half of this year, Australian bank Macquarie said on Monday, suggesting bullion being sold out of exchange-traded funds may be heading for Swiss refineries before being sold on in Asia.
Is A Foundering India About To Flood The Gold Market With 200 Tons Of "Leased" Gold
The circus of lies stacked on top of accounting lies, convoluted with more lies continues unabated in India, as bookkeeping entries replace actual physical gold.
http://www.zerohedge.com/news/2013-08-21/foundering-india-about-flood-gold-market-200-tons-leased-gold
http://www.zerohedge.com/news/2013-08-21/foundering-india-about-flood-gold-market-200-tons-leased-gold
Wednesday, August 21, 2013
Noam Chomsky Shocker: Sarah Palin Was Right
Last I checked, Chomsky is an uber-liberal. Yet, here he sides with Sarah Palin on Obama's bait-and-switch.
http://youtu.be/KK8bmxzsGcE
http://youtu.be/KK8bmxzsGcE
Tuesday, August 20, 2013
Eisai Weight Loss Tweet on BMI
Understanding your #BMI may help change your lifestyle. Get started here: http://t.co/KpaS5YSzAz.
— Eisai Weight Loss (@eisaiweightloss) July 25, 2013
SEC Charges Options Trader for Illegal Short Selling Tactics
This "enforcement" by the SEC is a drop in the bucket, but at least it's a start against the pervasive practice of illegal naked shorting, disguised by using the "reverse conversion."
http://www.sec.gov/news/press/2011/2011-264.htm
http://www.sec.gov/news/press/2011/2011-264.htm
Monday, August 19, 2013
Selling Spurt Takes 10 Year Treasury Yield To Fresh Two Year High
Recall my tweet on June 3 on 10-year treasury yields spiking, inferring the Fed was losing control of the long end of the yield curve. I was right, and the TBT long trade has been profitable.
http://www.zerohedge.com/news/2013-08-16/selling-spurt-take-10-year-treasury-yield-fresh-two-year-high
http://www.zerohedge.com/news/2013-08-16/selling-spurt-take-10-year-treasury-yield-fresh-two-year-high
JPMorgan Puzzled By Record Gold Backwardation
That "single largest shareholder" of GLD is John Paulson, who sold the GLD ETF, but the media doesn't report that he replaced it with over-the-counter gold derivatives, which means he is probably planning to take physical delivery of gold--if there is any left.
http://www.zerohedge.com/news/2013-08-18/jpmorgan-puzzled-record-gold-backwardation
http://www.zerohedge.com/news/2013-08-18/jpmorgan-puzzled-record-gold-backwardation
Sunday, August 18, 2013
JPMorgan Is Selling The Building That Houses Its Gold Vault
Shorts are fussing that gold has risen from its June 28 low of $1180 to today's approximate $1380. Some hedge funds are being taken out on a stretcher already.
Wait until we see $6300.
http://www.zerohedge.com/news/2013-08-18/jpmorgan-selling-building-houses-its-gold-vault
Wait until we see $6300.
http://www.zerohedge.com/news/2013-08-18/jpmorgan-selling-building-houses-its-gold-vault
Silver’s Very Bullish 3-Decade Chart Pattern
Every professional trader knows the cup and handle formation is one of the most powerful bullish indicators for an asset. If there is follow through in silver's chart, and silver blows through the $50 resistance point, silver's rise will be stratospheric.
http://www.fgmr.com/silvers-very-bullish-three-decade-chart-pattern.html
http://www.fgmr.com/silvers-very-bullish-three-decade-chart-pattern.html
Have precious metals bottomed?
This article is compelling in declaring the bottom in precious metals is in, but he doesn't really understand how the GLD ETF works.
Shareholders of GLD can redeem their shares for physical delivery of gold if they hold more than 100,000 shares. So when big hedge managers like John Paulson, George Soros, and Daniel Loeb are selling GLD, they are most likely receiving physical gold in exchange--and not necessarily cash. This would only exacerbate the current shortage of physical bullion.
The analysts and medias misconstrue this as hedge funds "selling" gold. Yes, they are indeed selling gold, but it is paper gold. Meanwhile, they are hoarding physical gold, intensifying the shortages globally.
http://sprottgroup.com/thoughts/articles/have-precious-metals-bottomed/
Shareholders of GLD can redeem their shares for physical delivery of gold if they hold more than 100,000 shares. So when big hedge managers like John Paulson, George Soros, and Daniel Loeb are selling GLD, they are most likely receiving physical gold in exchange--and not necessarily cash. This would only exacerbate the current shortage of physical bullion.
The analysts and medias misconstrue this as hedge funds "selling" gold. Yes, they are indeed selling gold, but it is paper gold. Meanwhile, they are hoarding physical gold, intensifying the shortages globally.
http://sprottgroup.com/thoughts/articles/have-precious-metals-bottomed/
Saturday, August 17, 2013
Incredibly Important Developments In Gold & Silver Markets
Most people assume hedge funds--the Big Money--are the smartest guys in the room, that they prey on retail investors. In most cases, it's true. But in the precious metals sector, the hedge funds are the Dumb Money. It is the crooked bullion banks who switch positions before inflection points, as they are in the warehousing business, and are therefore the best-informed and most capitalized market participants. If hedge funds are the Big Money, the bullion banks are the Bigger Money.
The recent surge in precious metals saw the hedgies scrambling to cover their short losses, while the bullion banks had switched from net short to net long (e.g. JPMorgan). Of course, the hedgies went short because Goldman Sachs and Societe Generale earlier downgraded the precious metals sector.
Followers got whipsawed and head faked out of their positions again.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/18_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html
The recent surge in precious metals saw the hedgies scrambling to cover their short losses, while the bullion banks had switched from net short to net long (e.g. JPMorgan). Of course, the hedgies went short because Goldman Sachs and Societe Generale earlier downgraded the precious metals sector.
Followers got whipsawed and head faked out of their positions again.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/18_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html
Money Show
I just attended the 3-day Money Show in San Francisco, where top investors, analysts, companies, and broker/dealers had exhibits, made presentations and dispensed financial advice. Not one was bullish on gold.
This tells me gold and silver will continue their recent upswing. But don't listen to anybody. Perform your own due diligence.
Predictably, most were explaining to hopeful investors on how to buy make money by identifying rising stocks. A few, to their credit, warned that taking profits is never wrong. I'm going to guess 90% of the crowd will guess wrong again, which is daunting because many people attending were pretty sharp.
This tells me gold and silver will continue their recent upswing. But don't listen to anybody. Perform your own due diligence.
Predictably, most were explaining to hopeful investors on how to buy make money by identifying rising stocks. A few, to their credit, warned that taking profits is never wrong. I'm going to guess 90% of the crowd will guess wrong again, which is daunting because many people attending were pretty sharp.
Thursday, August 15, 2013
Gold rallies on haven demand; silver up 5%
Even when gold and silver are soaring, the financial media has to give back-handed reasons on the surge in prices.
For example, in this quote, they don't acknowledge that gold is a safe haven asset, but:
Here's another excerpt of feigned acknowledgement of gold's role as a counterbalance to fiat currency:
So even though global demand for physical gold and silver is soaring--especially in Asia, and specifically China, India, and Russia, the WGC reports that demand fell in dollar terms. So how did WGC come to this obviously flawed conclusion?
They label paper gold sales in the form of the GLD ETF as negative demand. What they don't expose is that when large holders of GLD sell more than 100,000 shares of the ETF, they are actually selling the paper and taking delivery of physical gold. In other words, they are redeeming paper in exchange for real gold. Of course, this only intensifies the demand and hence, shortage of physical gold. So the WGC falsely reports declining demand--even though there is record demand for physical gold.
That's why now we are seeing the price of gold and silver soar--because there is a physical shortage. The massive sales of GLD are nothing but the ponzi scheme being exposed for what it is: fake gold. And investors are slowly coming around to the fact that it is better to have real gold in your hand than a paper claim to gold that does not exist.
Yet, the media and the WGC attempt to paint a negative picture even in the face of overwhelming bullish evidence that there is a run on physical gold, and pretty soon, prices will soar.
Other than that, at least they reported the fact that prices for precious metals are already rising. Better late than never.
http://www.marketwatch.com/story/gold-futures-aim-for-second-straight-win-2013-08-14
For example, in this quote, they don't acknowledge that gold is a safe haven asset, but:
Gold futures rallied on Thursday as steep losses for U.S. stocks and a decline in the U.S. dollar lured investors into the perceived safety of the precious metal.Notice how they subtly injected words like "lured" and "perceived", as if to suggest gold really isn't a safe haven asset, and that investors are being tricked into buying gold. Even when gold performs EXACTLY as it's supposed to, the benefits are grudgingly acknowledged, but laced with negative nuances.
Here's another excerpt of feigned acknowledgement of gold's role as a counterbalance to fiat currency:
In a report Thursday, the World Gold Council said overall gold demand fell in the second quarter to its lowest value in dollar terms in more than three years. The biggest hit came from outflows among exchange-traded funds, it said. Second-quarter demand fell 12% in tonnage terms and dropped 23% in dollar terms.To fully understand the context, readers should understand that the WGC is allegedly the voice of the gold industry--specifically, the mining companies. The WGC is an organization that is supposed to exist and act on behalf of the gold industry. Instead, they are mouthpieces for the major bullion banks, whose surreptitious charter is to depress precious metals prices, which in turn actually bankrupts the gold industry. That's how powerful the JPMorgan's, HSBC's, and Goldman Sachs' of the banking cabal are. They also work as agents for the Fed and western central banks as accomplices in the precious metals price suppression schemes.
So even though global demand for physical gold and silver is soaring--especially in Asia, and specifically China, India, and Russia, the WGC reports that demand fell in dollar terms. So how did WGC come to this obviously flawed conclusion?
They label paper gold sales in the form of the GLD ETF as negative demand. What they don't expose is that when large holders of GLD sell more than 100,000 shares of the ETF, they are actually selling the paper and taking delivery of physical gold. In other words, they are redeeming paper in exchange for real gold. Of course, this only intensifies the demand and hence, shortage of physical gold. So the WGC falsely reports declining demand--even though there is record demand for physical gold.
That's why now we are seeing the price of gold and silver soar--because there is a physical shortage. The massive sales of GLD are nothing but the ponzi scheme being exposed for what it is: fake gold. And investors are slowly coming around to the fact that it is better to have real gold in your hand than a paper claim to gold that does not exist.
Yet, the media and the WGC attempt to paint a negative picture even in the face of overwhelming bullish evidence that there is a run on physical gold, and pretty soon, prices will soar.
Other than that, at least they reported the fact that prices for precious metals are already rising. Better late than never.
http://www.marketwatch.com/story/gold-futures-aim-for-second-straight-win-2013-08-14
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/16_Escalating_Fear_Accelerating_Massive_Run_On_Physical_Gold.html#sthash.8zCha87s.dpuf
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/16_Escalating_Fear_Accelerating_Massive_Run_On_Physical_Gold.html#sthash.8zCha87s.dpuf
Wednesday, August 14, 2013
Wikileaks: US embassy cable - MEDIA REACTION: DALAI LAMA, U.S.-CHINA TRADE RELATIONS
http://cables.mrkva.eu/cable.php?id=247683
b. "The United States no longer sits still; it frequently uses evil tricks to force China to buy U.S. bonds" The Shanghai-based Shanghai Media Group (SMG) publication, China Business News (Diyi Caijing)(02/08)(pg A7): "This time the quick change of the U.S. policy (toward China) has surprised quite a few people. The U.S. has almost used all deterring means, besides military means, against China. China must be clear on discovering what the U.S. goals are behind its tough stances against China. In fact, a fierce competition between the currencies of big countries has just started. A crucial move for the U.S. is to shift its crisis to other countries - by coercing China to buy U.S. treasury bonds with foreign exchange reserves and doing everything possible to prevent China's foreign reserve from buying gold. The nature of such behavior is a rogue lawyer's behavior of 'ripping off both sides': taking advantage of cross-strait divergences, blackmailing the Taiwan people's wealth by selling arms to Taiwan, and meanwhile coercing China to buy U.S. treasury bonds with foreign exchange reserves and extorting wealth from the mainland's people. If we [China] use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the U.S. Federal Reserve suddenly announces that the original ten old U.S. dollars are now worth only one new U.S. dollar, and the new U.S. dollar is pegged to the gold - we will be dumbfounded. Today when the United States is determined to beggar thy neighbor, shifting its crisis to China, the Chinese must be very clear what the key to victory is. It is by no means to use new foreign exchange reserves to buy U.S. Treasury bonds. The issues of Taiwan, Tibet, Xinjiang, trade and so on are all false tricks, while forcing China to buy U.S. bonds is the U.S.'s real intention."
U.S. Price Producer Index: Santelli vs. Liesman
Rick Santelli yelling it like it is, and Steve Liesman, as usual, lies.
http://www.zerohedge.com/news/2013-08-14/santelli-slams-liesman-theres-difference-between-real-life-inflation-and-governments
http://www.zerohedge.com/news/2013-08-14/santelli-slams-liesman-theres-difference-between-real-life-inflation-and-governments
The Two Steps to Spotting a Psychopath/Sociopath
This probably describes every politician, great CEO, celebrity, elite athlete, great achiever, and entrepreneur.
http://www.spring.org.uk/2013/08/the-two-steps-to-spotting-a-psychopathsociopath.php#utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+PsychologyBlog+%28PsyBlog%29&utm_content=Yahoo!+Mail
http://www.spring.org.uk/2013/08/the-two-steps-to-spotting-a-psychopathsociopath.php#utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+PsychologyBlog+%28PsyBlog%29&utm_content=Yahoo!+Mail
Is This Why Gold Is Spiking?
I told you guys: JPMorgan is scrambling for physical gold, as inventories in their vaults and at the COMEX are plummeting. This recent price spike was inevitable.
http://www.zerohedge.com/news/2013-08-14/why-gold-spiking
http://www.zerohedge.com/news/2013-08-14/why-gold-spiking
Tuesday, August 13, 2013
Duties on gold import, non-essential items may go up
The Indian government is finding out the hard way that capital controls don't work. Neither does the restriction on sound money--gold and silver. As we predicted, raising taxes on gold imports only encouraged smuggling.
http://www.indianexpress.com/news/duties-on-gold-and-nonessential-items-may-go-up-p.-chidambaram/1154366/
http://www.indianexpress.com/news/duties-on-gold-and-nonessential-items-may-go-up-p.-chidambaram/1154366/
Monday, August 12, 2013
Gold Shorts Cover At Fastest Pace In 13 Years
For those who don't know what a short squeeze is, imagine that you're a male and someone takes a pair of pliers and squeezes your testicles with them. That's what happens when you sell short an asset and the price moves against your position--in this case, up. So now you have to buy that asset back to cover your short (go "long"), competing against other buyers, which drives prices up even further. In other words, the pliers are getting tighter.
Between the frenzy of shorts covering and the buyers buying, prices could go stratospheric.
That's today's finance class mixed in with human anatomy. Carry on.
http://www.zerohedge.com/news/2013-08-12/gold-shorts-cover-fastest-pace-13-years
Between the frenzy of shorts covering and the buyers buying, prices could go stratospheric.
That's today's finance class mixed in with human anatomy. Carry on.
http://www.zerohedge.com/news/2013-08-12/gold-shorts-cover-fastest-pace-13-years
The New, Improved 1984
http://charleshughsmith.blogspot.com/2013/08/the-new-improved-1984.html
Welcome to the new, improved 1984, America 2013.Ubiquitous surveillance: check.Ubiquitous propaganda extolling the state and central bank: checkPerpetual fear-mongering: checkPerpetual war against an unseen enemy who can never be defeated: checkPolice state with essentially unlimited powers to suppress "enemies of the state": check
Continual revision of history to support the current party line: check.
The Color-Coded Comex Crunch: Behind The JPMorgan Golden "Musical Chairs" Scramble
The mad scramble for physical gold at the COMEX continues with JPMorgan, HSBC, and Scotia feverishly shuffling between registered and eligible inventory (and vica versa) so JPMorgan can meet past due delivery requirements. At this depletion rate, all three bullion banks will soon be trading fumes--at which point, this game of musical chairs ends with the Titanic sinking in a "force majeure" event. No mas.
http://www.zerohedge.com/news/2013-08-12/color-coded-comex-crunch-behind-jpmorgan-golden-scramble
http://www.zerohedge.com/news/2013-08-12/color-coded-comex-crunch-behind-jpmorgan-golden-scramble
Trying to Make Sense of the Gold Market
Notice how the interviewer gets "contango" and "backwardation" mixed up. Freudian slip? Well, at least Bloomberg allowed a bullish gold trader to be interviewed, even if her line of questioning was slanted on trying to elicit bearish responses.
Even the title infers the "experts" are confused on why gold and silver are rising.
http://www.bloomberg.com/video/trying-to-make-sense-of-the-gold-market-2WL2EiG7T62eesbObxnmRg.html
Even the title infers the "experts" are confused on why gold and silver are rising.
http://www.bloomberg.com/video/trying-to-make-sense-of-the-gold-market-2WL2EiG7T62eesbObxnmRg.html
"For example, in our office we tried to buy physical gold when it got down right around $1200 - $1250. It's been eight weeks; we still haven't received our order of physical gold. I think what that means is there's a huge run on physical right now. You're seeing the prices now rally; you're seeing people want to be involved with the physical."
Silver Soars--Nary a Peep
This
is rich: Silver leaps up 5% in one day, and not one peep from the
financial media
On the other hand, if the Dow Jones had risen 5%--or 800 points, CNBC and Bloomberg anchors and analysts would be doing cartwheels on live TV.
But on days when gold and silver drop--every other story will be about how precious metals are going into the garbage bin. Watch.
On the other hand, if the Dow Jones had risen 5%--or 800 points, CNBC and Bloomberg anchors and analysts would be doing cartwheels on live TV.
But on days when gold and silver drop--every other story will be about how precious metals are going into the garbage bin. Watch.
Fed tapering?
Folks, the enclosed article from Zero Hedge below is long-ish,
longer and more esoteric than what I normally like to broadcast, but
it's important enough to comment on.
Due to its length, I will give you the Cliff notes version. QE has to be tapered, because the US Treasury borrowing needs will be reduced 30% later this year, and by extension, so will the need for debt to be monetized.
Hence, the Fed will buy fewer US Treasuries as part of QE, perhaps reducing QE from its current $85 billion to approximately $65 billion per month.
Therein lies the problem. This will shock markets, tanking all of them. Mere jawboning by Fed Chairman Bernanke of "tapering" QE a couple months ago caused equities and the bond markets to plummet, and remember: tapering doesn't mean ending or reversing QE; it suggests reduction of QE. When and if the Fed actually follows through with it, expect markets to really tank.
This will probably irrationally include precious metals declining as well, but the rebound will be quick and severe, as it was in late 2008.
Why? Because when stocks and bonds collapse, this will provide cover for the Fed to STEP UP QE, which is essentially nothing more than legalized counterfeiting. Bernanke is leaving his post just at the right time--right when things will get really ugly in the next few years. Remember: Bernanke replaced Greenspan in 2005. We all know what happened in 2007-2009.
So what should one do leading up to this scenario before September? For one, lowering expectations for higher equities would be a start. I am not an equities expert, but some may even short the market. Pull some profits off the table, taking profits, increasing cash positions, etc.--those are all euphemisms for protecting your portfolio gains. Stay in solid stocks in case they keep rising. Also, equities may continue to rise as the dollar sinks--even if inflation-adjusted returns are treading water.
Due to its length, I will give you the Cliff notes version. QE has to be tapered, because the US Treasury borrowing needs will be reduced 30% later this year, and by extension, so will the need for debt to be monetized.
Hence, the Fed will buy fewer US Treasuries as part of QE, perhaps reducing QE from its current $85 billion to approximately $65 billion per month.
Therein lies the problem. This will shock markets, tanking all of them. Mere jawboning by Fed Chairman Bernanke of "tapering" QE a couple months ago caused equities and the bond markets to plummet, and remember: tapering doesn't mean ending or reversing QE; it suggests reduction of QE. When and if the Fed actually follows through with it, expect markets to really tank.
This will probably irrationally include precious metals declining as well, but the rebound will be quick and severe, as it was in late 2008.
Why? Because when stocks and bonds collapse, this will provide cover for the Fed to STEP UP QE, which is essentially nothing more than legalized counterfeiting. Bernanke is leaving his post just at the right time--right when things will get really ugly in the next few years. Remember: Bernanke replaced Greenspan in 2005. We all know what happened in 2007-2009.
So what should one do leading up to this scenario before September? For one, lowering expectations for higher equities would be a start. I am not an equities expert, but some may even short the market. Pull some profits off the table, taking profits, increasing cash positions, etc.--those are all euphemisms for protecting your portfolio gains. Stay in solid stocks in case they keep rising. Also, equities may continue to rise as the dollar sinks--even if inflation-adjusted returns are treading water.
If one already has gold and silver, adding just a little more may be good--in case I'm wrong and the Fed continues to step on the easy monetary pedal. Depending on how much you already have relative to how much you think you need, you can add a little more or just sit still, and wait for a collapse--although that collapse may not occur. That's why you already have hands on deck with your existing holdings.
However, if you have very little or NO physical precious metals holdings at all, you need to initiate a position, because you don't want the train to leave the station without you, in case the Fed doesn't engineer a collapse of markets first.
For both groups, I give you this thought. Don't focus as much on the price of gold and silver. Focus on how many ounces you believe you should own. If you believe the global and local economy will magically recover, and that all this money printing will not further deteriorate our government finances, then there is no reason to have more than 5% of your net worth in precious metals.
However, if you believe the Fed will continue its 100-year history of debasing the dollar, then you should absolutely own more than 5% in gold and silver. In other words, if you expect prices on food, gas, utility bills, healthcare, tuition, textbooks, etc. to continue to rise, then buy more gold and silver.
Good luck to all of us. The waters are about to get stormy, so make sure you have your life jackets on.
Sunday, August 11, 2013
Where The Fed's Excess Reserves Are Going: 51% Foreign Banks; 49% Domestic
This is further evidence the financial elite don't give a damn about the American citizen. The American public has been duped for 100 years. The Federal Reserve Bank is not a federal agency. It is a private corporation with banks as shareholders, both European and U.S.
Any bank bail-outs or bail-ins from the Fed are banks saving themselves from collapse--on the backs of taxpayers and depositors.
http://www.zerohedge.com/news/2013-08-11/where-feds-excess-reserves-are-going-51-foreign-banks-49-domestic
Any bank bail-outs or bail-ins from the Fed are banks saving themselves from collapse--on the backs of taxpayers and depositors.
http://www.zerohedge.com/news/2013-08-11/where-feds-excess-reserves-are-going-51-foreign-banks-49-domestic
Dishonesty and Candor in Monetary Policy
http://bastiat.mises.org/2013/08/dishonesty-and-candor-in-monetary-policy/
This blatant double talk just further compounds the basic dishonesty of the underlying term “quantitative easing”. It is of course intended to disguise the truth which is that the Fed is creating money. Another favorite circumlocution, favored by nearly all mainstream journalists, is “bond buying.” Nobody ever mentions that the Fed is “bond buying” with newly created money, which is the relevant point.
The origin of today’s monetary policy of course lies in Keynesian economics, and Keynes was quite explicit that monetary authorities should intentionally use deception as a primary tool. He spoke of the need to gull workers into thinking that wages were going up even if net of inflation they were going down. At least he had a sense of humor about it, calling a central bank a “green cheese factory” that would persuade the public to accept ” green cheese” ( newly created money) as the real thing.
Saturday, August 10, 2013
Eric Sprott: “All The Paperwork Has Been Laid Out—For Bail-Ins As The Solution In The West”
http://bullmarketthinking.com/eric-sprott-all-the-paperwork-has-been-laid-out-for-bail-ins-as-the-solution-in-the-west/
“The one event in my mind would be when it becomes apparent to everyone that having a deposit in a bank is a very risky situation. We saw that in Cyprus where the depositors got nailed on the bail-in. We’ve seen all these proposals to have bail-ins as the solution to the problem in the US, in Canada, in Britain, in New Zealand and in Europe. All the paperwork has been laid out.”
Who does Bill Gross read?
This tweet will be meaningless to 99.9% of the population. Here is my breakdown, which will hopefully reduce the gap.
Bill Gross is a genius, who happens to run the largest bond investor in the world, PIMCO--with over $2 trillion of assets under management.
"Durden" is the pseudonym of zero hedge's founder. It refers to "Tyler Durden", the character played by Brad Pitt in the feature film "Fight Club." Zero hedge is a blog known for its insightful, if irreverent tone towards government, the banking class, mainstream media, and zombified masses.
Previously, their critics would label them fringe conspiracy theorists. The only problem is they also happened to be prescient in predicting financial crises and exposing financial corruption.
The irony is you have one entity which represents the ruling financial elite, and one which includes alternative financial viewpoints--a blog which is admittedly anti-establishment. That they share the same ideology should concern the dumbed-down and brain-washed investing public.
Bill Gross is a genius, who happens to run the largest bond investor in the world, PIMCO--with over $2 trillion of assets under management.
"Durden" is the pseudonym of zero hedge's founder. It refers to "Tyler Durden", the character played by Brad Pitt in the feature film "Fight Club." Zero hedge is a blog known for its insightful, if irreverent tone towards government, the banking class, mainstream media, and zombified masses.
Previously, their critics would label them fringe conspiracy theorists. The only problem is they also happened to be prescient in predicting financial crises and exposing financial corruption.
The irony is you have one entity which represents the ruling financial elite, and one which includes alternative financial viewpoints--a blog which is admittedly anti-establishment. That they share the same ideology should concern the dumbed-down and brain-washed investing public.
Gross: Strategists/writers I follow? Dalio, Durden, Bianco, Arnott, Aitken, Santelli, Grant, Grantham, Inker, Marks, Quaintenance & Brodsky
— PIMCO (@PIMCO) August 9, 2013
Bread Lines vs. Food Stamps
What's the difference between this:
and this?
Answer: About 80 years.
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BitCoin Is Now Officially A (Schrodinger) Currency
I beat Bloomberg News and zero hedge to the punch with this critique of BitCoin several weeks ago: http://gregnguyen.blogspot.com/2013/06/bitcoin-is-it-legitimate-currency.html
Here is the latest news on BitCoin:
http://www.zerohedge.com/news/2013-08-10/bitcoin-now-officially-schrodinger-currency
Here is the latest news on BitCoin:
http://www.zerohedge.com/news/2013-08-10/bitcoin-now-officially-schrodinger-currency
Gold Price vs. Chinese Gross Domestic Savings
There is a high correlation (0.97) between Chinese savings and the price of gold. In other words, the more the Chinese public saves, the more they buy gold--and the higher the price of gold.
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Wall Street's big SAC Capital problem
This proves now big embattled SAC hedge fund manager Stevie Cohen is. Because if SAC goes down, a lot of big banks will be going down with him. My speculation? Despite SAC's obvious shenanigans, a few managers will be scapegoated to create the illusion of justice. Many will pay fines and admit no guilt.
The too-big-to-fail banks connected to SAC must be sanitized from any wrong-doing. Wall Street needs to be portrayed as that shining example of capitalism, instead of the rotten, corrupt, rigged market it has become.
http://www.cnbc.com/id/100940427
The too-big-to-fail banks connected to SAC must be sanitized from any wrong-doing. Wall Street needs to be portrayed as that shining example of capitalism, instead of the rotten, corrupt, rigged market it has become.
http://www.cnbc.com/id/100940427
Caveat Depositor
http://www.sprott.com/markets-at-a-glance/caveat-depositor/
“If there is a risk in a bank, our first question should be: ‘Ok, what are you the bank going to do about that? What can you do to recapitalise yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll ask them to contribute in recapitalising the bank. And if necessary the uninsured deposit holders: ‘What can you do in order to save your own banks?’” – Jeroen Dijsselbloem, March 26, 2013 1
A deal has just been struck with Cyprus. However, it was not the deal that Cyprus saw other countries receive. This was not the deal received by Greece, Italy and Spain. There were no bailed out banks in the aftermath. There was no transfer of risk from over-levered banks to the taxpayers. The risk was pushed back onto the banks. Their equity was wiped out. Their bondholders were wiped out. Their uninsured depositors saw their accounts raided for additional liquidity. It wasn’t just that the rules of the game had changed, the game itself changed. By raiding the depositors’ accounts, a major central bank has gone where they would not previously have dared. The Rubicon has been crossed. Going forward, this is expected to be the “template” for dealing with risky, over-levered banks and the countries which support them.
43pc bought more gold after price plunge
Strong hands stepped up in the face of falling gold and silver prices.
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/10222974/43pc-bought-more-gold-after-price-plunge.html
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/10222974/43pc-bought-more-gold-after-price-plunge.html
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