Hyperinflation will drive gold to unthinkable heights

http://goldswitzerland.com/index.php/hyperinflation-will-drive-gold-to-unthinkable-heights/

We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments.  Thus most of these assets are also worth-less.

American Eagle Silver Uncirculated Coin

From the horse's mouth--the US Mint:

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins.

Bailed-Out Banks Slip Toward Failure

http://finance.yahoo.com/banking-budgeting/article/111703/bailed-out-banks-slip-toward-failure

Biz Break: iPhone relief in San Francisco; plus: a real estate 'double dip'?

http://www.mercurynews.com/60-second-business-break/ci_16959122?source=email&nclick_check=1

Real Estate Spin Continues by Mainstream Media

http://usawatchdog.com/real-estate-spin-continues-by-mainstream-media/

China shrinks rare earths export quota

China will do what China wants to do.  Which means the end of cheap electronic imports are coming to an end.

http://www.forbes.com/feeds/ap/2010/12/28/general-as-china-rare-earths_8226081.html

Class action against Morgan, HSBC specifies silver manipulation mechanism

http://news.silverseek.com/SilverSeek/1293546686.php

"Before the Class Period began, JPMorgan had become the custodian and an authorized participant of the largest known concentration of silver bars, the iShares Silver ETF, which holds in excess of 340 million troy ounces of silver, a sum that equals an estimated 1/3 of the total present global supply of silver bullion. As a result, it had actual knowledge of the precise whereabouts of much of the world's known silver bar supply.

"In approximately March 2008, JP Morgan acquired Bear Stearns, which held a very large short position in silver. With more of the total short position in silver concentrated in the hands of JP Morgan, it had a further motive to suppress prices.

"Upon information and belief, JP Morgan works together with HSBC, the other dominant player in the silver and precious metals markets. In July 2009, HSBC became the custodian of the SIVR ETF, which meant that it had physical access to and knowledge of the silver held by that trust. Notably, it named JP Morgan as one of the sub-custodians of the SIVR ETF.

"As a result of their participation in the silver ETFs, JP Morgan and HSBC had a direct opportunity to confer and discuss with each other the prices of silver held by each of them.

"In addition, Defendants had a strong incentive to suppress downward the price of silver as measured by the NYSE-Arca and CME/COMEX instruments. For example, Defendants could pledge their silver to the ETFs in exchange for ETF shares, sell their shares to other market participants, drive down the prices of silver through trades on NYSE-Arca and CME/COMEX, buy back their ETF shares from investors at lower prices, and return their (now lower-priced) silver ETF shares in exchange for the silver bars initially pledged against those shares, the real value of which remained the same, and only notionally appears lower because of Defendants' suppression.

U.S. gas price tops $3 a gallon, highest since Oct '08

What inflation?

http://www.reuters.com/article/idUSTRE6BQ3DU20101228?feedType=RSS&feedName=businessNews&WT.tsrc=Social%20Media&WT.z_smid=twtr-reuters_biz&WT.z_smid_dest=Twitter

Roubini: "It's Pretty Clear The Housing Market Has Already Double Dipped"

http://www.zerohedge.com/article/roubini-its-pretty-clear-housing-market-has-already-double-dipped

Guest Post: Former Shell Oil Chief Predicts $5 Gas by 2012

http://www.zerohedge.com/article/guest-post-former-shell-oil-chief-predicts-5-gas-2012

I’m predicting a worse outcome over the next two years, which takes us to 2012 with higher gasoline prices, uncertainty as to the future of hydrocarbons, more regulation on the hydrocarbon industry based upon who the administration is today…
And what I fear the most is that by 2012 prices are so high that we have a backlash from the electorate and we go into reverse and we go back to a hydrocarbon only type of a future, maybe with some nuclear, instead of moving on in the 21st century.
…
I’m predicting, based upon the moratorium in the Gulf of Mexico, up to a million barrels a day of US production gone because of the politics of freezing drilling in the Gulf.
The headline is the moratorium is lifted, the reality is you can’t get a permit… I’m expecting no new drilling for two more years at least.
…
If we stay on our current course, within a decade, within ten years, we’re into energy shortages in this country big time. Black outs, brown outs, gas lines, rationing - that’s my projection based upon the current inability to  make decisions.
…
When the American consumers are short, or when prices are so high - $5 a gallon for gasoline by 2012 - I believe that’s going to happen - that’s going to set a new tone, it’s going to be panic time on the part of the politicians, they’re going to suddenly get some kind of a sense we better do something.

MannKind Updates Status of New Drug Application for AFREZZA(R)

http://www.news.mannkindcorp.com/phoenix.zhtml?c=147953&p=irol-newsArticle&ID=1510884&highlight=

MannKind Corporation (Nasdaq: MNKD) today announced that it was informed on December 27, 2010 by the U.S. Food & Drug Administration (FDA) that the agency will not be able to complete the review of the New Drug Application (NDA) for AFREZZA^(R) (insulin human [rDNA origin]) Inhalation Powder by the action date of December 29, 2010. The FDA stated that it will require approximately four additional weeks to complete its review of the NDA.

See disclaimers in the left side bar.

Disclosure:  no position in MNKD.

WHEN WILL THE GOLD BUBBLE BURST?

Gold historically rallies between September until March, at which point, it will correct on a seasonal basis.  Worldwide events like the Ramadan, Diwali, Christmas, and the Chinese Lunar New Year coincide with the rally period.  The enclosed article suggests the gold bubble could burst in May or June of 2011.

In my opinion, it doesn't take into account that precious metals are a store of value, and not just a commodity.  Readers should perform their own due diligence and decide for themselves what the potential outcomes are.

http://pragcap.com/when-will-the-gold-bubble-burst?utm_source=twitterfeed&utm_medium=twitter

Gold miners to go global

http://www.chinamining.org/News/2010-12-01/1291165804d41197.html

Look for M & A activity within the precious metals mining sector to increase globally going forward.

John Embry: gold, silver could go ballistic by year-end

By year-end, I'm hoping Embry means 2011, and not 2010.


http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_112610_pg401Emb.pdf

Howard Buffett Said "Human Freedom Rests On Gold Redeemable Money", Called For Return To Gold Standard

Howard Buffett, Warren's late dad, had an entirely different perspective on gold than his more famous son.  Hence, this was a must re-blog.

http://www.zerohedge.com/article/howard-buffett-said-human-freedom-rests-gold-redeemable-money-called-return-gold-standard

The hypocrisy of Berkshire's Charlie Munger

http://www.zerohedge.com/article/munger-tells-25-million-americans-suck-it-and-thank-god-bank-bailouts-brk-benefits-95-billio

Crude Passes $91, As $100 Billion In US GDP Is Wiped Out In Minutes

http://www.zerohedge.com/article/crude-passes-91-100-billion-us-gdp-wiped-out-minutes

I've read every $1 price increase in a barrel of oil causes a 0.3% reduction in trade.  With the US economy hovering around $14 trillion, GDP is reduced $84 billion with every $1 increase in a barrel of oil, which is in the ball park of $100 billion, as stated in this article.

The take-away message is that quantitative easing (or printing money out of thin air) induces price inflation, which is counterproductive for economic stimulation.

Noteable quotes on (sound) money

http://www.fame.org/NotableQuotes.asp

Part 2-JP Morgan Silver Manipulation Explained

Hey, if it takes a cartoon for Americans to learn something, so be it.



http://www.youtube.com/watch?v=uPg4qTNTP-E&feature=player_embedded

Alabama Town’s Failed Pension Is a Warning

http://www.nytimes.com/2010/12/23/business/23prichard.html?_r=2&pagewanted=1&partner=rss&emc=rss

Bank Of America Registers BrianMoynihanBlows.com And BrianMoynihanSucks.com

http://www.businessinsider.com/bank-of-america-registers-brianmoynihanblowscom-and-brianmoynihansuckscom-2010-12?sailthru_m=h2n

Full 2 hour lecture of Jim Rickards on economics and national security

http://outerdnn.outer.jhuapl.edu/rethinking/VideoArchives/MrJamesGRickardsPresentationVideo.aspx

Jim Rickards - Economics & National Security - Trailer

http://www.youtube.com/watch?v=7DczTk8XPtc

Moody's May Cut US Rating on Tax Package

I recall Treasury Secretary Geithner declaring US Treasuries being downgraded from a AAA credit rating being "impossible."  Well, the unthinkable is now tangible, according to Moody's.

http://www.cnbc.com/id/40641123

Jerry Brown: California Budget Is "Much Worse Than I Thought -- We've Been Living In Fantasy Land"

http://www.businessinsider.com/jerry-brown-worse-than-i-thought-2010-12

He said last night: "I'm going to try to get the budget agreements done within about 60 days. I don't think we have a lot of time to waste... It will be a very tough budget, but it will be transparent... We've been living in fantasy land. It is much worse than I thought. I'm shocked."

Hear that, last year's $20 billion budget cuts amounted to living in fantasy land.
Brown implied he would apply major cuts to the education system and other programs. He also refused to rule out new taxes. And it's got to add up to at least $29 billion in cuts.