on Precious Metals (2013 - January to June)
Matters: The Most and Least Expensive Cities to Run a Household in
America. Posted 6/27/2013. Also see: Presenting
long before investors sell other assets than gold to meet margin calls?
and China building their gold reserves. Posted 6/30/2013.
Sprott - Stunning Indian Buying To Crush Silver Shorts. Posted
6/28/2013. But here is the piece de resistance, they said
(India) imported 720 tons in April (annualize 8,000 tons). In May
it went to 900 tons, annualized call it 11,000 (tons). Were
going from 1,900 tons (of silver Indians were purchasing) to 11,000
tons, in a 25,000 ton market. Thats impossible. Theres
not that amount of silver available for investment.
is not inconceivable that by 2016 China will be importing nearly 2,000
tons of gold each year, which is 80 percent of global mine supply..
Posted 6/27/2013. While India imported 1,900 tonnes of silver in 2012,
in the first five months of 2013 alone, imports have touched 2,400
tonnes. According to industry estimates, silver imports during the
January-March quarter stood at 760 tonnes. Imports shot up 720 tonnes
in April alone, and in May, they further swelled by 920 tonnes.
Rule On Gold & Resources: Were Now Seeing Capitulation
By Institutional Investors. Posted 6/27/2013.
Repeal. Posted 6/24/2013. The Worse Things Get The Thicker The
World Is Now On The Edge Of Total Collapse. Posted 6/23/2013.
he liquidity in China is under tremendous pressure. The shadow banking
system is now at $2 trillion and 50% of debt is rolled over every
3 months, and 75% of Chinas debt is rolled over every 3 to 6
months....Japan is even worse.
The Man In Charge Of America's Secret Cyber Army (In Which "Bonesaw"
Makes A Mockery Of PRISM). Posted 6/23/2013.
Banksters, World Bank Criminals, Military Suicide Epidemic, Brazil
Protests. Posted 6/22/2013. Details world bank crimes and eventual
consequences (starts around 8:00).
Why is there volatility in precious metals now? June 2013. Posted
The Recent Surge In Rates Means For Your Home Purchasing Power.
Posted 6/20/2013. It also means that a buyer who could previously
afford a $506K house with a $2,000 monthly budget at an interest rate
of 2.5% will be able to afford only $316K if and when the average
30 Year fixed hits 6.5%: a 40% drop in affordability based on just
a 4% increase in interest rates!
Last Mystery of the Financial Crisis. Posted 6/20/2013. In incriminating
e-mail after incriminating e-mail, executives and analysts from these
companies are caught admitting their entire business model is crooked.
plunges again: unleashes perfect storm for the bears. Posted 6/20/2013.
Thus, as we suggested in an article yesterday, the downwards movement
in the gold price appears to be almost totally fixated on the fortunes
of a single economy, that of the U.S., which is perhaps not as robust
as its politicians and Central Bankers make out. The economic fortunes
of the rest of the world are seemingly being ignored. What now remains
to be seen is whether the Chinese will take up the slack in the gold
market yet again, or whether some kind of purchasing fatigue will
have set in given the continuing poor performance of precious metals
prices. The other factor to watch is whether some of the major short
positions in gold and silver on the COMEX now get unwound at the lower
prices. For gold miners, developers and explorers the latest prices
are little short of disastrous and we are thus certain to see some
further consolidations and terminations.
Low Can It Go? Posted 6/20/2013. How much leverage is out there
in the market today? About as much as was in 2007 -- maybe more. While
you generally don't borrow with rollover risk but everyone else in
the markets does -- governments, companies and traders. Worse, they
use leverage when they borrow. They "gear up" to "earn
profits." Now this is threatening to unwind en-masse, after it
was gamed in the first place. How bad can it get? Very bad. No, it
won't all happen in a day. But it will happen. Remember the cracks
in 1987 -- and 2007 -- showed up several months before the leverage
unwind went "boom." Don't get complacent.
To Come. Posted 6/20/2013. Yesterday was the first day of the
reversal. There will be more days to come....the amount of leverage
on the books is giant and is now going to get covered. There is not
enough liquidity in the major Wall Street banks, any longer, to deal
with the amount of securities that will be thrown at them and I expect
the down cycle to get exacerbated by this very real issue. Now you
may be wondering what to do next. The Fed has signaled its intentions
very clearly. You should be taking profits, taking money off the table
and building up your cash positions. How bad it is going to be is
uncertain but BAD, with capital letters, in my estimation. Eventually
Treasury yields will go back down because the Fed will be buying more
bonds than the Treasury needs to issue but for now the "leverage
issue" will overcome that reality. Mortgage rates will be heading
higher, the Real Estate market is going to correct and the days of
wine and roses are now behind us.
Treasury Gold Is It There? Posted 6/17/2013.
Co-Founder Steve Wozniak Discusses The Constitution, NSA Spying and
Torture. Posted 6/12/2013.
between Silver's Price and Demand, through May 2013. Posted 6/5/2013.
Now being referred to as "Drutter's Divergence". The price
of Silver is dropping while the buying is accelerating - never seen
- Massive Demand To Send Price Of Silver Skyrocketing. Posted
6/17/2013. I see these oil prices creeping up, despite all of this
fracking, and it feels almost certain that the days for the US dollar
are numbered. There is only one possible replacement and that has
to be gold. Thats the bottom line. There is very little downside
risk in this market, perhaps down to $1,320. When you look at the
upside, you can multiply gold by ten and thats probably the
ultimate price for gold....Silver is going to have a role as a monetary
metal, and its also going to continue to have a major, major
role as an industrial metal. If gold is going to go up 10-fold (above
$13,000), silver will go up at least 15-fold ($330). The silver bulls
just need to hang in there and continue accumulating. As the price
of gold soars, more and more people in China, India, and other parts
of the world, will begin to pour money into physical silver. This
will have the effect of creating major disruptions in supply.
Said It: "This Administration Acts Like Violating Civil Liberties
Is The Way To Enhance Our Security". Posted 6/16/2013. Barack
Obama in 2006.
This Day in 1933. Posted 6/14/2013. You were considered a hoarder
and a slacker if you still resisted turning over your gold to the
government. From the New York Times, June 13, 1933 (article quoted).
By January 1934, Roosevelt increased the dollar price of gold from
$20.67 to $35, thus devaluing the dollar by 70 percent while increasing
the value of gold that the government now owned.
Sales By Foreigners Hit Record High In April. Posted 6/14/2013.
in April, foreign investors, official and private, sold $54.5 billion.
Why is this number of note? Because it is the biggest monthly sale
of Treasurys by foreigners in the history of the data series.
Now A Safe Haven From The US Empire. Posted 6/12/2013.
Vault Gold Drops By 28.4% Overnight, Slides To Fresh Record Low As
Withdrawals Accelerate. Posted 6/11/2013. At this pace, the world's
biggest gold vault located below 1 CMP, and just next to the Fed's
own gold vault, will be empty in about 1.5-2 months.
Edward Snowden Quotes About U.S. Government Spying That Should Send
A Chill Up Your Spine. Posted 6/11/2013. He has given up his high
paying job, his home, his girlfriend, his family, his future and his
freedom just to expose the monolithic spy machinery that the U.S.
government has been secretly building to the world. He says that he
does not want to live in a world where there isn't any privacy.
Not About Terrorism Folks. Posted 6/11/2013.
Core: A List Of Millions Of Americans That Will Be Subject To Detention
During Martial Law. Posted 6/11/2013.
NEWS: The State Against Citizens. Posted 6/10/2013.
Bank Gold Positions Explode By Highest Rate On Record; Short Positions
Collapse. Posted 6/10/2013. While the mainstream financial media
continues its attack on gold, US Banks & Large Traders are now
joining the worlds top hedge funds in being shockingly long
goldand they are making that move incredibly quickly.
COSTS: Much Higher Than Most Realize. Posted 6/10/2013. Total
costs to mine silver are much higher than the industry is putting
out in their financial statements. With the current low price of silver
below $22, the majority of primary silver producers are losing a great
deal of money. According to my calculations of my top 12 silver miners
only ONE is making a little money.
Gold and Silver Bank Participation Report - Ted Butler's Comments.
Posted 6/9/2013. JPMorgans emergence as the big COMEX gold long
changes the dynamic of the gold market.
Snowden: the whistleblower behind the NSA surveillance revelations.
Posted 6/9/2013. The 29-year-old source behind the biggest intelligence
leak in the NSA's history explains his motives, his uncertain future
and why he never intended on hiding in the shadows
Urgent Message From The Totalitarian State: Arrest Journalist Glenn
Greenwald. Posted 6/9/2013. NSA surveillance leaks and Constitution
Created Digitally Is Nearly Free - Including Money. Posted 6/6/2013.
And Canadian Mint Sales: All Of Domestic Silver Supply Used Solely
For Bullion. Posted 6/6/2013. If investor physical demand stays
at current levels, all U.S. and Canadian silver mine production will
go to solely satisfy domestic demand for government issued coins (and
supply will still be 25 million ounces short). Industrial demand and
alternative bullion suppliers will have no physical silver supply
to use, and their silver needs will have to come from imports of silver.
Additionally, low silver prices will cause many miners to cut production
because their costs are above current silver spot prices, and so we
also expect a drop in mine production. Finally, silver scrap supplies,
which make up around 25% of silver supply, will definitely be impacted
by low silver prices and we expect this source of supply to also drop.
gold demand surmise and reality. Posted 6/5/2013. Since
its 2009 reserve upgrade, China has produced close on 1200 tonnes
of gold, and given it does not export its gold production and
all that is produced is sold to the state in some form or another
then it is not unreasonable to suggest that it has actually
doubled its gold reserves over this period to nearer 2,000 tonnes.
06-01-13 Macro Analytics Transitioning to INNOVATION Driven w/ Charles
Hugh Smith. Posted 6/5/2013.
Zero Hour Scenario. Posted 6/5/2013. The mere
combination of only five separate sources of demand, Sprott
writes in a recent white paper, results in a 2,268-tonne net
change in physical demand for gold over the past 12 years meaning
that there is roughly 2,268 tonnes of new annual demand today that
didnt exist 12 years ago.
bans gold imports with bank credit. Posted 6/5/2013. In what traders
termed a near panic reaction to the sliding Indian rupee, the RBI
banned import of gold by domestic consumers through bank credit and
has made overseas purchase of the precious metal a cash & carry
The Nikkei Crash, NASDAQ, & TSX 06-04-2013. Posted 6/4/2013.
Chart analysis suggesting a bear market is dead ahead for the world
Pope joins the chorus in blaming free markets. Posted 6/4/2013.
"While the income of a minority is increasing exponentially,
that of the majority is crumbling. This imbalance results from ideologies
which uphold the absolute autonomy of markets and financial speculation,
and thus deny the right of control to States, which are themselves
charged with providing for the common good."
Return to Sender. Posted 6/4/2013. Major broad deep channels are
being constructed to redeem and discharge USTreasury Bonds. They will
be returned to sender. The USFed will be put under tremendous strain
to absorb and soak up the supply being dumped around the world in
all these major channels.
Japanese Financial System Is Beginning To Spin Wildly Out Of Control.
Posted 5/27/2013. Are we witnessing the beginning of a colossal financial
meltdown by the third largest economy on the planet? The Bank of Japan
is starting to lose control, and if Japan goes down hard the crisis
could spread to Europe and North America very rapidly. From Kyle Bass:
"What they're doing represents 70% of what the Fed is doing here
with an economy 1/3 the size of ours"
banks dump their gold and silver short positions ready for the coming
rally in precious metal prices. Posted 6/3/2013. Bullion banks
have massively scaled back their short positions in gold and silver
during the recent price crash and are now well positioned to profit
from a rally in precious metal prices, according to the latest TF
Metals Report. Also see: Speechless
Turd, Something Is Very Wrong, What Could Be Up! (May 31, 2013).
Collapse Shows Bankruptcy of Interventionism. Posted 6/2/2013.
By Ron Paul. May was Iraqs deadliest month in nearly five years,
with more than 1,000 dead both civilians and security personnel
in a rash of bombings, shootings and other violence. As we
read each day of new horrors in Iraq, it becomes more obvious that
the US invasion delivered none of the promised peace or stability
that proponents of the attack promised.
Demand For Physical Quadruples Gold Premium. Posted 6/2/2013.
As BloomMay was Iraqs deadliest month in nearly five years,
with more than 1,000 dead both civilians and security personnel
in a rash of bombings, shootings and other violence. As we
read each day of new horrors in Iraq, it becomes more obvious that
the US invasion delivered none of the promised peace or stability
that proponents of the attack promised.berg notes, even before the
mid-April drop, China's gold imports jumped to a record in the first
quarter as domestic demand (776 tons) outweighed domestic supply (403
Reserve Advisory Committee Worries About Inflation, "Unsustainable
Bubble" In Stocks And Bonds. Posted 6/1/2013. Minutes of
the Federal Advisory Council meeting held on May 17 were published
Friday on the Fed's
website and reveal concerns among its officials over the long-term
ramifications of its quantitative easing policies.
Casino At The End Of The Universe. Posted 5/29/2013. Let me explain
this to you. Between the actions of the world's central banks and
the use of leverage we have built the biggest casino ever built in
the history of the world. It is no longer possible to invest.
Ma - No Hands!" - So Much For The Housing Recovery. Posted
5/29/2013. Lumber is tanking hard. Yes, there is a slight seasonal
component to the price of lumber, but based on all the media reports
blaring from all directions, one would think that homebuilders can't
build enough new homes to satisfy demand and thus the demand for lumber
should be insatiable. But if that's the case, then why is the price
of lumber falling like a rock?
Grand Finale: Here Is What Is About To Happen To You...An Economic
Love Story, or Fifty Shades of Green? Posted 5/29/2013. Its
now obviously a currency crisis we face. But it just so happens, they
have a solution ready to roll out. First: They will create
a world body, or use one of their world bodies theyve already
created, to manage world currencies and the amount of those currencies
in circulation. Second: any country that agrees to enter into,
and abide by, an agreement to allow this world body to
control the amount of that countrys, or Unions, currency
in circulation according to rules prescribed in the agreement will
receive a huge discount in the amount of their sovereign debt owed.
Third: all participating currencies of each country will from
that point on be backed by a basket of commodities specific to that
country or union. Fourth: all excess liquidity over and above
the prescribed circulation limits in the agreement will be removed
from the system. (In other words, currency devaluation.) Fifth:
all of the resources and commodities used to back the currency of
the country will be placed under the defacto control of the Central
Bank that issues the currency
Deserve the IRS. Posted 5/28/2013. Since the 1791 ratification
of our Constitution, until well into the 1920s, federal spending as
a percentage of gross domestic product never exceeded 5 percent, except
during war. Today federal spending is 25 percent of our GDP. State
and local government spending is about 15 percent of the GDP. That
means government spends more than 40 cents of each dollar we earn.
If we add government's regulatory burden, which is simply a disguised
form of taxation, the government take is more than 50 percent of what
Mother of All Painted-In Corners. Posted 5/25/2013. Japan has
fired the first real shot in what future historians will record as
the most significant global currency war since the 1930s and the first
in a world dominated by true fiat money. Japan is the third-largest
economy in the world. Its biggest banks are on a par with those of
the US. It is a global power in trade and trade finance. Its currency
has reserve status. It has two of the worlds six largest corporations
and 71 of the largest 500, surpassed only by the US and comfortably
ahead of China, with 46. Even with the rest of Asia's big companies
combined with China's, the total barely surpasses Japan's (CNN). In
short, when Japan embarks on a very risky fiscal and monetary strategy,
it delivers a serious impact on the rest of the world. And doubly
so because global growth is now driven by Asia.
If Stocks, Bonds and Housing All Go Down Together? Posted 5/24/2013.
The belief that when the next crash comes, it will take down all three
bubbles: stocks, bonds, and housing.
The sleeping giant of gold producing countries. Posted 5/24/2013.
As it stands today, the top seven global gold producers, according
to the U.S. Geological Survey, are: 1. China (370 Metric Tonnes) 2.
Australia (250 MT) 3. United States (230 MT) 4. Russia (205 MT) 5.
South Africa (170 MT) 6. Peru (165 MT) 7. Canada (102 MT). Keep in
mind too that in terms of known reserves Russia reports 5000 metric
tonnes. It ranks third behind Australia (7400 MT) and South Africa
(6000 MT). The United States reports 3000 MT.
Big Squeeze Continues in the Top Gold Miners. Posted 5/23/2013.
Few realize that during the late 1800's the average ore grades of
the worlds gold mines were 20-25 g/t on average nearly
20 times larger than the present rate. Today the gold miners are left
to basically mining gold dust.
Of This Moment Ben Bernanke Own 30.5% Of The US Treasury Market...
And Will Own All By 2018. Posted 5/23/2013. Finally, the above
means that with every passing week, the Fed's creeping takeover of
the US bond market absorbs just under 0.3% of all TSY bonds outstanding:
a pace which means the Fed will own 45% of all in 2014, 60% in 2015,
75% in 2016 and 90% or so by the end of 2017 (and ifthe US budget
deficit is indeed contracting, these targets will be hit far sooner).
in Gold. Posted 5/21/2013. It appears to me that JPMorgan and
their ilk have bought absolutely massive quantities of gold and silver
in many different markets. Unfortunately, much of that buying has
come as a result of the deliberate and successful manipulation of
price in order to force others to sell.
& Gold Bull Market Not Over Until the Fundamentals Say So - Mike
Maloney. Posted 5/21/2013.
Silver, For Starters. Posted 5/20/2013.
Resident: How 47% of Congress Became Millionaires. Posted 5/13/2013.
Important Developments In Gold & Silver Markets. Posted 5/20/2013.
Charts showing the gold and silver action of yesterday and today.
It may be a sign that these metals have bottomed.
Slide Following Permadove Chuck Evans' Attempt At Math. Posted
5/20/2013. Fed ownership across the 6y-30y portion Treasury curve
is likely to reach about 50% by end of 2013 and an average of 65%
by end of 2014. Given the current issuance schedule, we believe it
is very likely that the Fed changes its purchase buckets through the
next round of Treasury purchases. In particular, the Fed will begin
to run out of issues in the 8y-10y bucket and will be forced to buy
newly issued 10y notes should they choose to maintain the same distribution.
That's right: there is a possibility the Fed would end up owning over
two-thirds of all Treasurys with a maturity over 6 years by the end
of 2014, especially now that the US suddenly needs to issue less primary
debt than expected previously. Extrapolating further: 80% by 2015;
90%+ by 2016 and #Ref! by 2017 and onward.
True All-In Cost To Mine Gold: Complete 2012 Figures. Posted 4/17/2013.
The first thing gold investors should note is that the true all-in
costs to produce an ounce of gold (excluding write-downs) was $1287
for 2012, which is around a 10% increase in costs over 2011. The true
gold cost of $1287 is much higher than the reported "cash costs"
(under $1000 for most miners) and gives gold miners very limited profit
at current gold prices.
crisis 2013: with record stock exchange highs, the planets imminent
plunge into recession. Posted 5/16/2013. Despite a feeling of
relative calm given by both the media and the American and Japanese
financial markets going from record to record, the world economy is
slowing down badly and a widespread recession is looming. The various
players are fully aware of it and, in the face of the challenges of
an imminent collapse, countries or regions are putting various strategies
in place to try and limit the consequences. Whilst some seem dictated
by desperation or last chance solutions, others on the contrary bear
witness to a real adaptation to the worlds current changes.
And its no surprise that, in the first category, we find the
powers of the world before which no longer have any real
and the Dow. Posted 5/16/2013. The two most significant nominal
peaks of the Dow were in 1929 and 1973. Silver made a significant
peak in 1935, about six years after the Dows major peak in 1929.
Again, in 1980, silver made a significant peak, about seven years
after the Dows major peak in 1973.
Bullion: 4 Fundamental Facts. Posted 5/15/2013. (1) You can't
print more gold. (2) Gold is viewed as a currency by central bankers.
(3) A lack of love from the Love Trade is affecting fundamentals.
(4) Corrections happen, but have historically offered buying opportunities.
& What I Know for Certain. Posted 5/16/2013. A currency collapse
is like a bank run everyone scrambles to remove his/her wealth
from the currency (or the bank) due to a loss of confidence. In fractional
reserve banking systems, bank runs are inevitable. Even though they
may last for many decades, unbacked paper currencies inevitably devalue
and eventually collapse.
Reports Over $239mm In Gold Positions, Buys $25mm In Call Options
On Juniors. Posted 5/16/2013. In a 13-F release issued by the
SEC after market close yesterday, it was reported that Soros Fund
Management LLC, founded and chaired by billionaire financier George
Soros, significantly increased its gold related holdings, most notably,
through the purchase of over $25 million dollars worth of call options
on the GDXJ Junior Gold Miners index.
Not Finding Enough Metal To Meet Future Demand - Kitco News. Posted
5/15/2013. Precious metal junior miners are capitulating. Cash flow
remains the biggest problem. In fact, Cook said that there are 700
mining companies that have $200,000 or less, and that isn't enough
capital to make it through the year.
do Zimbabwe and Weimar Germany have to do with the U.S. Dollar?
Posted 5/10/2013. Porter makes it very clear that gold and silver
are on the cusp of an explosion in price and it absolutely will happen.
It will happen so fast that you will not be able to jump aboard after
the fact. Either you own it now, before the fireworks begin, or it
will be too late. And its not just about making a killing in
gold and silver when it happens, the dollar-based investments
that most Americans have will suffer greatly. Gold will have shown
the fiat currency system to be a fraud. The fractional reserve system
in currencies and in gold and silver will be exposed.
Funny Thing Happened on the Way to the Next Bull Market. Posted
5/10/2013. If we consider average P/E's, it's clear the SPX is extended
far above what can be considered historical fair valuations.
the reality gap. Posted March, 2013. Officially, unemployment
in the US is declining. Its fallen from a high of 9.1% a couple
years ago, to 7.8% in recent months. This would be good news, if the
official unemployment rate measured unemployment, in the everyday
sense of the word. It doesnt. The technical definition of U3?
unemployment, the most commonly reported figure, excludes people whove
given up looking for work, those whove retired early due to
market conditions, and workers so part time they clock in just one
hour per week.
There May Be a Lot Less Gold than We Realize. Posted 5/8/2013.
By Chris Martenson, posted on Casey Research.
Truth About The Gold Being Drained From GLD. Posted 5/8/2013.
So in connecting all the dots, there is no question in my mind that
the big price smashing of gold in mid-April was an operation designed
to shake loose enough 400 oz. gold bars out of GLD in order to satisfy
the enormous delivery demands coming from Asia, India and even within
Europe. GLD is the only possible source of above-ground 400 oz. gold
bars that could be used to satisfy this enormous demand for physically
At some point, and probably sooner than most people are willing to
believe, this physical demand is going to force an upward "explosion"
of the paper derivatives being used to hold down the spot price right
now. In 30 years of studying and trading the financial markets, I
have never seen contrarian indicators for any market sector flashing
as bullishly as they are for gold and silver, which further confirms
my view that the metals have bottomed and are getting ready to give
those of us who held on the ride of a lifetime.
We On The Verge Of Witnessing The Death Of The Paper Gold Scam?
Posted 5/8/2013. The legal claims on physical gold far exceed the
amount of physical gold that the banks actually have by a very, very
wide margin. And right now the bankers are scared out of their wits
because their warehouses are being drained of physical gold at a frightening
US Goes Suicidal: How to Save Money and Lives. Posted 5/8/2013.
More people now die of suicide than in car accidents, according to
the Centers for Disease Control and Prevention, which published the
findings in Friday's issue of its Morbidity and Mortality Weekly Report.
In 2010, there were 33,687 deaths from motor vehicle crashes and 38,364
the Stasi American. Posted 5/7/2013. The phenomenon is not evidence
of a flaw in the German character; it points to a tendency
within human nature itself. Gellately found informers were not primarily
motivated by patriotism, fear, or an ideological commitment to Hitler.
Rather they were motivated by greed with businessmen reporting on
partners to acquire the full share of a company. The envious turned
in a richer neighbor. The spurned informed on ex-lovers and romantic
rivals. The petty revenged their small disputes by calling in the
Gestapo. And, then, there were those who basked in the self-importance
of being listened to by authorities.
When encouraged and rewarded by authority to act viciously, when their
vile behavior is protected from consequences, many people will become
the worst versions of themselves. They will become expressions of
statism. By contrast, if viciousness is discouraged and punished by
a civil society, the same people may never harm another human being.
Human interaction is often defined by a framework of financial and
Operation TIPS and CPAT will create the worst possible version of
an American an American who is indistinguishable from the German
woman who turned in an acquaintance for being Jewish. Like the Nazi
informer, the American may blithely deny the viciousness of his act
by saying that is not me. Of course, it is. At least,
that is who the average American could become when handed the power
of the state to use anonymously and with no consequences against anyone
he dislikes. He is the American that the ruling elite wish to create.
[And he is the American all your friends and neighbors will become.
The Stasi America is coming. Get out of its way while you still can.-Ed.]
Whistleblower Censored from 60 minutes. Posted 5/2/2013.
We Are, Why Gold Was Bombed, And Why TA Is A Waste Of Time. Posted
5/6/2013. (Includes links to three videos.) The not-anticipated result
of the take down on paper gold was to wake a sleeping elephant of
physical demand from other every corner of the globe. The opinion
of the operators is that if the gold banks can keep pressure up on
paper gold the huge demand for physical will fizzle. The world outside
of North America has recent memories of monetary situations exactly
the same as now. They know that paper is in its final stage and gold
is in a major ascendancy. Physical demand will remain strong thereby
overcoming paper gold and forcing paper gold exchanges to change their
methods of delivery, clearly restricting paper to a secondary role
and making its use to manipulate gold redundant.
The 3-Week Anniversary Of The Precious Metals Bear Raid. Posted
5/6/2013. Charts showing that the paper gold unwind continues. That
is, GLD holdings continue to drop precipitously even while the price
of the ETF recovers from the drop.
Fekete: Gold Backwardation and the Collapse of the Tacoma Bridge.
Posted 5/6/2013. Keynes, who studied Gesell's Freigeld thoroughly,
arrived at the conclusion that gentle inflation was superior to Freigeld.
Friedman chimed in suggesting that the rise of prices can be checked
through fixing the rate of increase in the stock of money. They were
all wrong. They all promoted the exponential explosion of debt. Gold
is indispensible as the only ultimate extinguisher of debt. It weeds
out unwanted and toxic debt automatically. It is the flywheel regulator
of the economy: it keeps the velocity of money at its optimum.
If breakdown occurs during the phase when the rate of interest is
falling and money flows from the commodity to the bond market, then
we have what I call hyperdeflation. That is what we are apparently
having right now. It started over thirty years ago in the early 1980s.
When in January 1980 interest rates failed to break out on the upside
(as appeared likely at the time, with the gold price hitting $875),
the system went into the mode of declining interest with such a force
that put the Fed out of control. For the past three decades interest
rates have been falling relentlessly. Of course, the Fed would like
to have us believe that this is the result of deliberate monetary
policy. I suggest it to you that it's not. It is runaway resonance
in action on the side of interest rates and the velocity of
money falling to zero. Fall they do inexorably. It is hyperdeflation.
The Fed is desperately trying to fight it, but all is in vain. We
are on a roller-coaster ride plunging the world into zero-velocity
of money and into barter.
Great Gold Redemption. Posted 5/3/2013.
Law Proves Gold And Silver Are Remarkably Undervalued. Posted
5/2/2013. Gresham's law is an economic principle that states, "when
a government overvalues one type of money and undervalues another,
the undervalued money will leave the country or disappear from circulation
into hoards, while the overvalued money will flood into circulation."
It is commonly stated as: "Bad money drives out good" -
Gresham's Law. Doesn't that sound like the situation in the
United States and globally? Paper money is being printed by the trillions
and the recent price takedown of gold/silver unleashed an unexpected
frenzied scramble for physical gold and silver that the buyers will
tuck away, out of the sight and from the grips of any government.
Seeking $11.2 Trillion In Collateral, Or How "Modern Money"
Really Works. Posted 5/1/2013.
True Cost To Mine Silver - Complete 2012 Figures. Posted 3/27/2013.
When taxes are normalized..., production costs rise to $24.70 per
ounce which would support our estimates that 2013 will see more rising
costs for the silver industry....According to the 2012 numbers, the
$24 range would provide the average silver producer no margin of profit,
and if cost pressures continue to grow, this may be even higher (remember
fourth quarter costs were close to $25 per ounce after normalizing
taxes). Of course not all silver miners would be unprofitable and
some miners may continue to churn out silver even with zero profit
margins, but it would be a situation that would be unsustainable.
beginning of the silver age. Posted 5/1/2013. Generally, wave
III will run faster and gain much more compared with wave I. It will
probably take gold to $10,050 to $16,000 per ounce in circa 5 to 8
years or even faster. Meanwhile, silver will go to $500 to $1,100
per ounce then.
Bear Market in GoLD. Posted 5/1/2013. On 1/2/13, the GLD showed
an alleged "inventory" of 1,349.92 metric tonnes of gold.
As of this evening, the GLD "inventory" is listed as 1,078.54
metric tonnes following another drawdown today, this time for 2.10
tonnes. So, year-to-date, the GLD "inventory" is
now down 20.1%.
Gross: "There Will Be Haircuts". Posted 5/1/2013. Quick
Read: (1) Central banks and policymakers are acting like barbers.
They haircut your investments. (2) Negative real interest rates, inflation,
currency devaluation, capital controls and outright default are the
barbers scissors. (3) Gradually reduce duration, risk positions
and carry as the year proceeds.
Treachery & Harsh Consequences. Posted 4/30/2013. Gold and
USTBonds aint a market. Their so-called official trading arenas are
empty rooms with USGovt and USFed devices filling the empty space,
creating a phony price. The false Gold price has no real supply. The
false Bond price has no real demand. The claimed price is not where
Supply meets Demand to clear the table on the market. Therefore the
claimed price is not the real price. Neither Gold more the USTBonds
are a real market.
Report - How To Avoid Fake Silver & Counterfeit Gold Products.
5 Stages of Economic Collapse: Financial, Commercial, Political, Social
& Cultural Where is the U.S. Now?. Posted 4/25/2013.
I think that the stage 1 (financial) and stage 2 (political) collapses
will compress into a single chaotic episode. Commercial collapse will
not be far behind, because global commerce is dependent on global
finance, and once international credit locks up the tankers and the
container ships wont sail. Shortly thereafter it will be lights
World Is Hoarding Alternative Money As Almost All Major Countries
Are Going Through The Classic Stages of Economic Collapse. Posted
4/30/2013. Argentina is going through the classic stages of economic
collapse. The government seized all pensions. They are destroying
everything that gives the people incentive to be a society that emerges
from the cooperation of everyone. When government turns against its
own people, even as the USA is currently doing, you end up with deflation
insofar as the economy collapses and wages are not available, while
hoarding emerges as does barter.
Gold Now. Posted 4/29/2013. What we learned from these big players
is that no one was a net seller. There was across-the-board purchasing,
and on significantly increased volumes. We heard more than once that
"We've never seen anything like this." And that includes
the 2008-2009 period.
Global "Fractional" Paper Bullion Market Is Collapsing.
Posted 4/29/2013. He said right now those same families are walking
into the big banks like JPM and demanding delivery of their bars or
threatening to take their $100's of millions in investment portfolios
to competitors. His wording was "these people are putting a gun
to the heads of private banks and demanding their gold." At some
point there will be an even bigger "run on the bank" by
those looking for delivery of the physical gold/silver that they have
been "assured" is sitting in their "trusty" bank
custodian vault. At some point there will be a complete collapse of
trust in the paper monetary system and the price of gold/silver will
really go parabolic...
Beware - Numismatic Collector Coins. Posted 1/10/2011.
Flexes Its Nuclear Muscles While We Fixate on North Korea and
Iran. Posted 4/26/2013. If the CoT is true and accurate...and
I have always thought it to be...then there can be no doubt that we
are on the verge of major fiat-conversion price rallies in both metals,
perhaps even something more dramatic.
Accounts For 99.3% Of The COMEX Gold Sales In The Last Three Months.
Physical Drain AcceleratesWith Over $7.8B In Gold Disappearing
From All Depositories. Posted 4/24/2013.
USD Reserve Exodus Continues - Australia Diversifies Reserves Into
China. Posted 4/24/2013.
For Physical Gold Spreads To UK Where Royal Mint Sales Of Gold Coins
Triple. Posted 4/24/2013.
Barons Are Stealing Pensions, Bank Deposits and Democracy. Posted
4/24/2013. At a certain point, when the Japanese, US and eurozone
stimulus pumps have so debased their currencies that further pumping
would prove futile, gold, silver, platinum and possibly diamonds will
again be regarded as safe haven assets. Attempts by central banks
and high-stakes speculators to manipulate markets may produce temporary
violent price fluctuations, but in the long term they will fail to
drive down prices or tarnish their safe haven luster.
- Full-Blown Panic As People Ask Where Is The Gold?
JPMs Alleged Silver Shorts Already in the Money?. Posted
4/23/2013. Author suggests a trading range of $22 to $25 over the
next two months or so, until JPM covers a huge chunk of its short
American Eagle planchet suppliers elusive. Posted 4/22/2013. The
United States Mint has the production capacity to strike between 50
million and 60 million American Eagle silver bullion coins annually
to meet demand, but ongoing inability to secure sufficient planchets
stifles full use of that capacity.
US is moving to a gold standard. Posted 4/22/2013. There are now
20 US states that either have successfully passed bills to allow gold
and silver to be used as legal tender, or have been exploring it as
an option. The article has an up to date status of each of the states.
to Ruining the Economy. Posted 4/20/2013. As we remarked in these
pages a couple of Weekenders ago, the Fed, the BoE and the ECB are
providing a massive jolt of freshly inked currencies to
their respective economies, hoping to prop up optimistic asset prices.
The rate of expansion is, says Bill Bonner, unprecedented in
world history. Were talking, of course, about ZIRP, QEI,
QEII, Operation Twist (OP) and other such dubious, acronymic concoctions.
All the tools tools, in other words. But wait! Doesnt
EZ money policy lead to rank malinvestment and moral hazard
exact same recipe that baked the world economy into such a sordid
mess the last time? Well, yes.
As CounterPunchs Mike Whitney explains: Investors have boosted
their borrowing to near-record levels to load up on stocks. The last
time that margin debt was this high was just before the bubble burst
in 2007. In January, New York Stock Exchange (NYSE) margin debt tipped
$366 billion, just shy of the 2007 peak of $380 billion. The Feds
zero rates and $85 billion per month bond buying program (QE) have
sparked the same irrational exuberance that preceded the Crash of
08. Investors are piling on the leverage because they feel confident
that Fed chairman Ben Bernanke will not allow markets to fall too
Reports CNBC: The IMF was clear in its global financial stability
report that it did not want to see an end to the extraordinarily loose
monetary policy being implemented across rich countries.
Silver And Bird Farmers. Posted 4/19/2013. As we learned from
the recent Cyprus debaclepolitical and monetary authorities
feel legally entitled and morally justified to confiscate your savings
when they want the funds to cover government bills. Meanwhile, never
forget that central banks everywhere continue to print money and monetize
government debt. The story of the Weimar Republic sort of speaks for
Governor Stein Warns When A TBTF Bank Fails, Depositors Will Be Cyprus'ed.
Posted 4/19/2013. Quote: Perhaps more to the point for TBTF, if a
SIFI (Systemically Important Financial Institution) does fail I have
little doubt that private investors will in fact bear the losses--even
if this leads to an outcome that is messier and more costly to society
than we would ideally like. Dodd-Frank is very clear in saying that
the Federal Reserve and other regulators cannot use their emergency
authorities to bail out an individual failing institution. And as
a member of the Board, I am committed to following both the letter
and the spirit of the law. See the Governor Jeremy C. Stein speech
Large Financial Institutions, April 17, 2013.
BOMBING UPDATE: THE BACKPACK MYSTERY-CONSPIRACY!!! Posted 4/20/2013.
Several "other" men with black backpacks during the Boston
Marathon that day. Who were they?
USA: De Facto State of Martial Law Has Been Declared In Boston *Pics
From the War Zone*. Posted 4/19/2013.
Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global
Run On Physical Gold And Silver. Posted 4/18/2013. The crash of
the price of paper gold on Monday has unleashed an unprecedented global
frenzy to buy physical gold and silver. All over the planet, people
are recognizing that this is a unique opportunity to be able to acquire
large amounts of gold and silver at a bargain price. So precious metals
dealers now find themselves being overwhelmed with orders in the United
States, in Canada, in Europe and over in Asia.
- Gold Reveals Global Markets On Thin Ice. Posted 4/18/2013. To
understand the real reason behind golds selloff, investors first
need to acknowledge that its not just gold coming under pressure.
Industrial and growth stocks are plummeting across the board. For
example, Caterpillar (CAT) is down 20% in the last 30 days, base-metal
commodities are headed into bear market territory. Copper is also
down 15% since February and is now trading at a over a 52-week low.
Oil is dropping sharply of late, falling down to $86 per barrel from
the mid-90s a few week ago. Also, the recent stock market rally
has been very narrowly based. Those equities that have been working
are defensive in nature like healthcare and consumer staples
that is not representative of a healthy market. So it comes down to
this; investors should not make the same mistake they did during the
fall of 2008, namely, ignoring the deflationary forces that are at
work in certain parts of the world. Commodity bear markets arent
good for earnings if they are representative of a worldwide economic
Is Theft. Posted 4/18/2013. By Andrew P. Napolitano. Andrew P.
Napolitano, a former judge of the Superior Court of New Jersey, is
the senior judicial analyst at Fox News Channel. Judge Napolitano
has written seven books on the U.S. Constitution.
Revolts Against Government Push To Take Control Of Judicial System.
Posted 4/18/2013. The streets of Buenos Aires are full of revolting
Argentinians this evening as they protest President Cristina Fernandez
de Kirchner's (CFdK) plans to 'increase' state control of the court
system. CFdK's proposal looks to limit the judicial system's ability
to bring actions against the state, as Bloomberg reports, leaving
citizens and companies unprotected against state actions affecting
their finance or assets (i.e. mass nationalization or confiscation).
Tells Us That A Gold Crash + An Oil Crash = Guaranteed Recession.
Posted 4/17/2013. At some point, there will be another major stock
market crash. When it happens, we will likely see even worse chaos
than we saw back in 2008. Major financial institutions will fail,
the credit markets will freeze up, economic activity will grind to
a standstill and millions of Americans will lose their jobs. I sincerely
hope that we still have at least a few more months before that happens.
But right now things are moving very rapidly and it is becoming increasingly
clear that time is running out.
Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks.
Posted 4/15/2013. Details the HFT (high-frequency trading) that went
on Sunday evening.
FBI Fosters, Funds and Equips American Terrorists. Posted 4/17/2013.
Running Through The Gate To Buy Gold Bullion. Posted 4/17/2013.
Selling In The West Could Spur A Gold Rush In The East. Posted
4/16/2013. When prices for precious metals drop, the Eastern countries
(particularly India and China) are buyers, not sellers.
and Availability Revisited. Posted 4/16/2013. If open interest
does not decline after the drop in price and this latest margin hike
(and maybe more to come) the odds of longs standing in a big way for
delivery increases exponentially. As for the physical markets, the
longer they keep the price down the more and more physical
metal will be gobbled up. We were already extremely tight in the physical
silver market. The last 2 days price action has cleaned up inventory
and left shelves nearly bare of silver. This is what youd expect
in a real market. As always, Mother Nature will take care of price
when availability is short. Premiums have risen as supply dwindled.
I do not believe that the price in the physical market
can stay where it is now for very long, otherwise we will have a supply
event where there is none to be had
rises to entice sellers. This low price will also add incentive to
paper longs to stand for delivery if the physical price is far higher
than the paper price. It would simply be an arbitrage where COMEX
silver is purchased at one price and sold on the physical market for
another (higher) price. It very well may be that the COMEX is engineering
its own demise that ends in a default because they so blatantly defied
supply and demand in the real world.
Price Smash Who, What, How and Why? Posted 4/16/2013. Speculates
that JP Morgan may have cleared its huge short position in silver.
We will know more after Friday's COT report.
Gold Was "Just A Commodity" What Would Be Its Support Price.
Posted 4/16/2013. Should gold assume its commodity role, its cost
of production should provide some guidance. Last year, the
average cost of production was $673/oz, and the marginal cost of production
(90th percentile) was $1104/oz. Assuming sustaining capex at around
$200/oz, this indicates cost support at around $1300/oz, based on
last years data; our global database encompasses 35% of global
production. The average cost of production was quite stable in the
1990s but has risen by an average 16% y/y over the past five years.
The marginal cost of production has risen by 69% over the past five
years, rising by 15.2% last year. Support comes into play initially
at around $1300/oz before a substantial quantity of mine production
is put at risk.
Why Did Silver & Gold Collapse? Mike Maloney and Chris Martenson.
Posted 4/16/2013. Time duration: 10 minutes.
of US Annual Silver Supply Just Vaporized. Posted 4/15/2013. Rio
Tintos Kennecott mine in Utah--the US 2nd largest silver
mine and worlds largest copper mine--has just suffered a massive
landslide which will likely shut down production at the mine for years
as upwards of 1 billion tons of dirt and ore have collapsed into the
basin. According to Rio Tintos VP of Marketing Vania Grandi,
Kennecott produces up to 5 million ounces of silver, and 1/2 million
ounces of gold annually. The total US mine output for silver in 2012
was 1,050 tons for 2012 or 30.6 million ounces, and US gold production
was 230 tons, meaning Rio Tintos Kennecott accounted for upwards
of 16% of total US silver supply, and 5% of US gold supply!!! See
video here: Massive
landslide damages Kennecott's Bingham Canyon Mine.
US Wholesalers Sold Out Of All Physical Silver!!!. Posted 4/15/2013.
Two of the largest wholesale suppliers in the US, including Amark
and CNT, who is the supplier of gold blanks to the US Mint for Gold
Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF
ALL PHYSICAL SILVER!!! Apparently the fact that one of the largest
wholesale suppliers in the US is SOLD OUT, while simultaneously the
2nd largest silver mine in the US is offline perhaps permanently is
of absolutely no consequence to the paper dumping cartel bullion banks.
- Notes on today. Question: I see that everywhere (increased
premiums on the metals), but once they sell of their current stock
(which they bought high so they have to jack up the premium), the
new inventory will probably have much less premium. Right? Answer:
New inventory... LOL. The blank makers have to get their metal from
somewhere, and it's not going to come from good delivery bars bought
on the futures exchanges, so that leaves the miners. I don't think
the miners are going to be super excited about production at low prices
and will scale back. Physical supply is going to get tighter, ergo
premiums higher. Of course if the LBMA default rumors are true, AU
will go to the stratosphere shortly, and premiums will be the last
thing to worry about.
- LBMA Default Triggered Gold & Silver Takedown. Posted 4/15/2013.
Gold and silver only have this type of selling when there are extreme
shortages of the physical metal. I am totally aware that before this
takedown occurred there was an imminent LBMA (London Bullion Market
Association) default. We had already seen COMEX inventories plunging.
In 90 days COMEX inventories saw an incredible decline. So immediately
available physical gold was disappearing. People around the world
dont understand what has been happening since Cyprus. Entities
went to the LBMA and said, We dont trust anybody anymore.
We want our physical metal. They were told they would be cash
settled instead by a bullion bank. The Western governments have been
trying to plug holes, and the reason for it has to do with the default
that was taking place at the LBMA. This is why this smash has been
orchestrated because of the run that has been taking place on physical
metal. So Western governments had to do this because of an imminent
run on the unallocated LBMA system. The LBMA bullion banks had become
so mismatched at one point on their trading positions vs real world
demand that they had to orchestrate this smash. This orchestrated
smash in gold and silver was nothing short of a bailout for the bullion
banks. So there is a run on physical gold that is taking place and
the Ponzi scheme the West is running is being threatened because of
Majeure Was the End Game All Along!. Posted 4/15/2013. The COMEX
will default in the next week or several weeks and people will be
settled with dollars, no more metal will be delivered!
So, knowing that game over has arrived, they are dumping
a massive volume of paper contracts with impunity to push the metals
prices as low as possible before the default. This way
the shorts do not have to and will not be covered
when supply cannot be obtained because of an act
of God. They will be settled in cash (at a profit no less) because
these unforeseen disruptions in supply. I would suspect
that banking stress and bail ins will also become prevalent
globally. The pricing structure will now push any and all physical
sellers away from the markets and the door to safety is
effectively being shut. Either you own metal or you dont.
In The Making. Posted 4/15/2013. Provides two possible scenarios.
Scenario #1: That this 10% drop from Friday's close is roughly the
bottom. Scenario #2: That we are seeing the end of the fractional
reserve bullion banking system. That is, to avoid physical settlement
(because there isn't any), the Comex simply halts paper metal trading
and cash settles at some arbitary, closing price. In other words,
a Comex default.
Pope Francis Laying The Groundwork For A One World Religion? Posted
4/15/2013. The new pope is trying to unite Islam with Catholicism.
Happened The Last Time We Saw Gold Drop Like This? Posted 4/15/2013.
the Gold Market was Crashed. Posted 4/12/2013. Theres been
a recent huge draw down of physical gold at the New York COMEX and
at the JP Morgan Chase depository. You can imagine the dilemma this
is causing for the market interests behind these inventories. If the
inventory runs out and one cannot meet deliveries then it has to be
bought on the open market. Not only that but it could cause a run
up in prices that would hurt the shorts in the market.
Average Person will soon Not Be Able to Afford Gold and Silver.
Posted 4/14/2013. This will not last beyond August of this year and
at that point in time, if not sooner, physical precious metals
prices could become untenable or beyond the reach of the average middle
class American as the supply crisis finally forces reality to meet
minimum purchase requirements.
Holdings Plunge. Posted 4/12/2013. As of this past Wednesday,
GLDs holdings had fallen a mind-boggling 12.5% in just over
4 months! It has had to liquidate 1/8th of its total gold bullion
to keep up with stock traders rushing for the gold exits. Over this
same span, the gold price is down 8.6%.
Price Drops Below $1,500 and €1,150. Posted 4/12/2013.
Has Happened Since
Posted 4/12/2013. What has happened to
the world economies since the September 6, 2011, high on gold of $1,920/oz.
A whole slew of terrible economic news that should be bullish for
precious metals. Nevertheless, they continue to be pummelled to lower
The Nightmare Scenario and How to Avoid It in America. Posted
3/21/2013. By Laurence Kotlikoff. Excellent summary of the Cyprus
banking crisis and a proposed solution.
Blocks Of Squalor - Government Built It, But They Didn't Come.
Posted 4/11/2013. Details a failed government-sponsored project in
Hyper QE Inflation Wars, Bank of England's Bail-in Secret, Buy Gold,
Silver? Posted 4/9/2013. Currency wars described from a British
template that nobody is watching. Posted 4/8/2013. Deposits can
not only fall driven by fear, but also by greed. This is the case
in 2013 in Argentina, a likely template for the US.
Majeure Inevitable as Silver Shortage Reaches Climax. Posted 4/9/2013.
They are riding the brake and flooring the gas at the same time by
trying to create velocity while at the same time breaking
the thermometers (suppressing the prices of Gold and Silver). This
cannot work for any length of time because stirring up the herd
cannot be stopped once started. If (when) they actually do get some
velocity of money, some of this will naturally (already
has and is) find its way toward the precious metals. The problem is
this, if the shelves go bare and investors find that metal is not
available, human nature will make them want it even MORE! Nothing
will create demand in a bigger fashion than when something is unavailable
which is exactly what unnaturally low prices will do!
Gold Inventories Collapse By Largest Amount Ever On Record. Posted
4/9/2013. Over the last 90 days without any announcement, stocks of
gold held at Comex warehouses plunged by the largest figure ever on
record during a single quarter since eligible record keeping began
in 2001. The timing of this trend change is also quite shocking, as
its happening during a time in which public sentiment towards
the metals are at their worse levels in years.
House backs privately minted coins as legal tender. Posted 4/9/2013.
A version of the measure already has been approved by the Senate.
That means only a final Senate vote is necessary before the measure
goes to the governor. Probable implementation will be mid-2014. Utah
passed a similar bill two years ago.
I survive and prosper within the Police State? Lists the Executive
Orders that turn this country into a Police State.
Things That You Should Do To Get Prepared For The Coming Economic
Collapse. Posted 4/8/2013. (1) An emergency fund, (2) don't put
all of your eggs into one basket, (3) keep some cash at home, (4)
get out of debt, (5) gold and silver, (6) reduce your expenses, (7)
start a side business, (8) move away from the big cities, (9) store
food, (10) learn to grow your own food, (11) water, (12) have a plan
when the grid goes down, (13) blankets and warm clothing, (14) hygiene
supplies, (15) medical supplies, (16) store up vitamins, (17) list
of supplies, (18) needs of babies and pets, (19) entertainment, (20)
self-defense, (21) ammunition, (22) if you have to go, (23) community,
(24) back-up plan, (25) keep your prepping to yourself.
Bass: "Japan Will Implode Under Weight Of Their Debt".
Posted 4/4/2013. Out of the gate Bass explains the massive significance
of what the Japanese are embarking on, "they are essentially
doubling the monetary base by the end of 2104." For a sense of
the scale of the BoJ's 'experimentation', Bass sums it up perfectly
(and concerningly), "the BoJ is monetizing at a rate around 75%
of the Fed on an economy that is one-third the size of the US!"
All G20 Bank Depositors Exposed to a Cyprus Style Seizure of Deposits
for a 'Bail-in?' Posted 4/3/2013. "Because the use of taxpayer-funded
bailouts would likely no longer be tolerated by the public, a new
bank rescue plan was needed. As it turns out, this new "bail-in"
model is based on an agreement that was the result of a bank bail-out
model that was drafted by a sub-committee of the BIS (Bank for International
Settlement) and endorsed at a G20 summit in 2011. For those of
you who don't know, the BIS is the global "Central Bank"
of Central Banks. As such it is the world's most powerful financial
...the agreement references specifically avoiding more taxpayer bailouts.
It also refers to bank deposits in excess of Government insured amounts
as "uninsured creditors." This is essentially the standard
legal bankruptcy model which uses creditor hierarchy (secured lenders,
unsecured lenders, preferred equity, equity) and applies to the rescuing
This is very important to know about and understand because what is
commonly referred to as a "bail-in" in Cyprus is actually
a global bank rescue model that was derived and ratified nearly
two years ago. It also means that bank deposits in excess of Government
insured amounts in any bank in any country will be treated like unsecured
debt if the bank goes belly-up and is restructured in some form.
US Treasury Official - Fed Desperate To Save System. Posted 4/3/2013.
If the Fed cant print money they cant buy the bonds to
keep the banks solvent and buy the bonds to keep the Treasury operating.
The rising gold price is a threat to that. So the Fed is taking desperate
action against gold.
Only Rises During the Bad Times and other Fairy Tales. Posted
Should You Take Social Security? 62 or Full Retirement Age? Posted
4/1/2013. You are better off taking social security at age 62. The
break even comes at age 78.
In The 50 States. Posted 4/1/2013. Tennessee ranks #3 in terms
of freedom, as defined by that website. Further discussed here: Where
(in the States) Can You Find Freedom?
Fool's Day. Posted 4/1/2013. Seven weeks ago, the silver commercials
were already gross long a record amount of contracts at 46,293. As
of last Tuesday, that amount had grown to 55,564. Up another 20%.
And the Forces of Darkness were gross short 98,239 contracts on 2/5/13.
As of last Tuesday, that number had declined to 79,605. A reduction
of 19%. And all of this buying and covering has dropped the all-important
Cartel net short ratio back to an extremely bullish 1.43:1. The only
other time I can recall seeing that ratio lower was on 12/27/11. With
price near $26.50 and on its way to $37 over the next two months,
the Silver Cartel net short ratio was 1.34:1.
Petrodollar Collapse - Economic disaster on the horizon. ep#20 part
1 of 3 www.SuccessCouncil.com. Posted 3/25/2013.
Prices Will "Explode" When These Investors Start Buying.
Posted 3/26/2013. The argument is that pension funds will start getting
Geopolitical Giants: BRICS world's wealthiest bloc in 30 yrs?.
gold discoveries declining at accelerating rate. Posted 3/25/2013.
According to a study which covers announced gold deposit finds over
the past 10 years, this decline (in new global discoveries and in
particular in gold grades) has been accelerating over the past four
years and if the trend continues, which seems likely as the easier-to-find
deposits have perhaps mostly already been discovered, then the future
of global mined gold supplies will gradually become affected.
Do Western Central Banks Have Any Gold Left? Part II. Posted 3/19/2013.
Sprott describes what he deems a smoking gun; no less,
from the U.S. governments own annals. Per todays QUOTE
OF THE DAY, his team has uncovered documents suggesting the
U.S. government has secretly dishoarded between 4,500 and 11,200 tonnes
of gold reserves since 1991; and likely, far more, as said records
only go back that far. Considering the U.S. government claims it holds
8,134 tonnes in Fort Knox, West Point, and the Denver Mint with
no audits since the mid-1950s Sprotts research indicates
it may ALL be gone.
The Russians Already Quietly Withdrawn All Their Cash From Cyprus?
Posted 3/25/2013. As it turns out, these same oligrachs may have used
the one week hiatus period of total chaos in the banking system to
transfer the bulk of the cash they had deposited with one of the two
main Cypriot banks, in the process making the whole punitive point
of collapsing the Cyprus financial system entirely moot.
Everyone Shocked By What Just Happened... And Why This Is Just The
Beginning. Posted 3/25/2013. Such mandatory, coercive wealth
tax is merely the beginning for a world in which there was
some $21 trillion in excess debt as of 2009, a number which has since
ballooned to over $30 trillion. For most countries, a haircut of 11
to 30 percent would be sufficient to cover the costs of an orderly
debt restructuring. For the United States it would be 26%. Only in
Greece, Spain, and Portugal would the burden for the private sector
be significantly higher.
Global Property Obsession Continues. Posted 3/23/2013. 'Last year,
institutional investors made up 19% of all sales in Las Vegas, 21%
in Charlotte, 23% in Phoenix, and 30% in Miami,' writes ZeroHedge.
The problem is, they're flooding the rental market, which is pushing
down rents. There's a crisis in the making here. If interest rates
rise and rents stay low because of oversupply, the hedge funds will
be in trouble. Michael Krieger of Liberty Blitzkrieg calls this 'one
of the biggest disasters waiting to happen in the US economy.' If
the hedge funds try to escape en masse, house prices could fall just
as interest rates rise.
European Bank Runs Could Spread Like Wildfire Due to Cyprus Banks-Laurence
Kotlikoff. Posted 3/25/2013. Bank runs due to bank insolvency,
bank crises, or inflation (get money out and buy something tangible
before the money becomes worthless). Very well presented information.
Word Out Of Place Sends Europe Tumbling. Posted 3/25/2013. Uninsured
depositors in the Bank of Cyprus will have their accounts frozen while
the bank is restructured and recapitalised. Any capital that is needed
to strengthen the bank will be drawn from accounts above 100,000 euros.
The agreement is what is known as a "bail-in", with shareholders
and bondholders in banks forced to bear the costs of the restructuring
first, followed by uninsured depositors. Under EU rules, deposits
up to 100,000 euros are guaranteed. The approach marks a radical departure
for euro zone policy after three years of crisis in which taxpayers
across the region have effectively been on the hook for resolving
problem banks and indebted governments via multiple rescue programmes.
In The Bank? No Thanks. Posted 3/22/2013. In Niall Fergusons
Civilization: The West and the Rest, he presents a list of institutional
arrangements that turned a bunch of ignorant, malodorous
Europeans into the worlds dominant culture in the space of a
couple of centuries. One of those institutional arrangements was property
Jim Rickards - Why Texas May Start to Hoard Gold - Fort Knox of Texas.
Posted 3/21/2013. The Daily Ticker's Lauren Lyster and Jim Rickards
discuss Texas' proposed gold legislation & It's own Fort Knox
of Texas & More....
betrayed in Cyprus bank grab... as Russians seize £2bn.
Posted 3/20/2013. Fury erupted yesterday as it emerged that rich Russians
withdrew £2billion BEFORE a tax raid on bank savings in Cyprus
was announced. The controversial one-off tax was announced on Saturday
as part of a 10billion euro bailout. But Russian oligarchs and big
investors emptied accounts in the days beforehand, prompting claims
they were tipped off by bank insiders. A source told The Sun: It
leaked out. Bankers warned their best clients. Government officials
warned their friends and relatives. Billions disappeared from accounts
in days, most from accounts held by Russians. Russians are by far
the biggest overseas investors in Cyprus, with a stake estimated at
- The Next Danger After Putin Crushed IMF In Cyprus. Posted 3/20/2013.
The IMF has now put itself into a very difficult position. The IMF
must now support Cyprus, even in the face of the rejection of the
attempted confiscation of partial bank deposits, or let the Cyprus
banking system seek its own solutions to its banking problems, which
would be Russian Corporations, or Russia itself. If Russia was to
save the Cyprus banking institutions, then, basically, a sovereign
nation has trumped the IMF. I believe this is unacceptable to the
IMF because it would mean that the IMF would not carry the clout which
it has carried over the years as a group of many nations. If one nation
can turn the switch off against the IMF, its going
to be very hard to turn that switch back on at the IMF.
- Cyprus Disaster Is Much Bigger Than Being Reported. Posted 3/19/2013.
Keep an eye on the Cyprus news. This might be a slow burn or, as Jim
Sinclair explains, the beginning of a rush to gold by the Russians.
If people believe that $13 billion is the total of this bailout,
they are out of their minds. $130 billion is not the true total of
even the Russian deposits in Cyprus banks. One important Russian businessman,
in his various business enterprises, would have $100 billion on deposit
himself. 10% of all deposits in Cypress could be $500 billion or more
because Cyprus is the banking entity for Russia, not Switzerland or
Grand Cayman. The Central Bank of Cyprus doesn't even know how big
the Russian deposits are because it is held as secret at the behest
of the Russians. It is a secret banking system set up for the Russians,
by the Russians, and the IMF has just taken a large bite out of that
Part of the result of all of this is the Russian elite will now move
heavily out of currencies and into gold. Going forward, the Russian
sovereign entity will now support the price of gold and it will be
for the benefit of the Russian oligarchy. This will also serve to
bring Russian and Chinese financial interests closer together, and,
in time, will finally result in freeing the gold market from Western
price manipulation and influence.
This IMF catastrophe in Cyprus is literally a landmark event in history,
and the single most important event in the entire history of the gold
market. I full expect that the key point I have now made, that this
concerns much more money than has been reported...
Selling My One Ounce Gold Coin for $20 (When It Was Worth $1600) Oops!
I needed some money, so I went to the wealthy beach community of Del
Mar, California to see if I could unload my one ounce gold coin. Here's
March Toward Cyprus Status. Posted 3/18/2013. Denninger predicts
that in 2 years the U.S. will be doing what Cyprus is attempting to
do. It will raid bank account, brokerage accounts, and/or retirement
Reasons Gold Will Set an All-Time Record In 2013. Posted 3/17/2013.
The 5 are: (1) The Feverish Growth of Fiat Money, (2) The Feverish
Demand for Gold, (3) Even Central Banks Have Begun Buying, (4) High
Demand Meets Short Supply, and (5) Analysts consistently forecast
too low and are even predicting declining gold prices farther out.
Does It Again: Cyprus Depositor Haircut "Bailout" Turns
Into Saver "Panic", Frozen Assets, Bank Runs, Broken ATMs.
Posted 3/17/2013. Specifically, Cyprus will impose a levy of 6.75%
on deposits of less than €100,000 - the ceiling for European
Union account insurance, which is now effectively gone following this
case study - and 9.9% above that. The measures will raise €5.8
billion, Dutch Finance Minister Jeroen Dijsselbloem, who leads the
group of euro-area ministers, said.
About Americas Official Gold Holdings: The US Gold Reserve Audit.
Posted 3/14/2013. Lots of problems with the so called "audit".
Not To Make Gold Money. Posted 3/14/2013. Central banking and
sound money are mutually exclusive -- that they cannot co-exist in
the same economy anymore than lovemaking and rape can co-exist in
the same act. It has to be one OR the other. Hence, the return to
sound money cannot be achieved without ending the Fed. Keeping the
Fed with a gold standard would lead to something like the bad experience
Britain had when it tried to return to a prewar ratio of gold to the
Community-Based Alternative to the Welfare State. Posted 3/14/2013.
dollars share of central bank reserves falls to 54% in 2012:
World Gold Council. Posted 3/14/2013.
Obama Began Currency Wars in 2010 - Jim Rickards. Posted 3/14/2013.
Good summary by Jim Rickards on where we are in the currency wars.
Mr. Rickards say's the U.K. Pound Sterling will be as of now the Biggest
Loser as they have no Gold to fight with. He expects continued inflation
around the world.
Collins China Is Moving Full Stream Ahead. Posted 3/13/2013.
An insider view of the Chinese economy. It's a lot better off than
what most outsiders report. He believes that much Western reporting
that makes numerous claims of an economic bubble are gross exaggerations.
The ghost cities are largely overblown. Most Chinese are cash buyers
and even those that take out mortgages still put up 30 percent.
Worth vs. Net Value. Posted 3/13/2013. As an alternative to Net
Worth, let's start a list of attributes of Net Value:
The number of close friendships you have nurtured.
The number of people you have mentored.
The number of children you've given abundant time to.
The number of trees and gardens you've nurtured with your own time
The number of practical skills you've acquired and freely shared
The time you have spent alone, not in pursuit of work or pleasure
but of solitude.
The self-directed mastery of difficult disciplines.
The number of strangers (foreign visitors, etc.) you have aided
or invited into your home without any financial compensation or
Bass Warns "The 'AIG' Of The World Is Back". Posted
3/12/2013. His single best investment idea for the next ten years
is, "Sell JPY, Buy Gold, and go to sleep."
economy of peak food stamp usage, peak Dow, and peak Debt: What does
it say about our economy that at the same time the Dow Jones hits
a peak, we have the highest percentage of Americans on food stamps?
Destructive Hyperinflation & The Final End Game. Posted 3/12/2013.
The mechanics for currency devaluation are straightforward and would
be simple to exercise: The Federal Reserve System would announce a
program of gold monetization in which the Fed offers to tender for
any and all gold in qualifying forms at a fixed price of say US $10,000
per troy ounce. The program would be conducted through participating
U.S. chartered banks, which would be instructed to properly assay
gold and exchange it for U.S. dollars to be placed in customer bank
accounts as deposits. Deposit holders will be entitled to make withdrawals
in the form of dollars or gold at the fixed exchange rate.
Willie: The Collapse Is At Our Doorstep. Posted 3/12/2013. On
The collapse is happening now--its no longer ultra-slow motion
like 2 years ago. Its a new event every few days or weeks. The
pace of extreme events is quickening. Extreme events have become the
norm, putting tremendous additional stress on the system which the
boys are trying to manage. They dont have enough people, enough
resources, enough channels, and they dont have enough brains
to do it....A series of climax events is coming very soon. The changes
will be rapid and breath-taking. I think vast wealth is going to be
lost in the US and the West, except by gold and silver owners. Owning
gold and silver will become harder to do because the rules are becoming
relationship between money and prices. Posted 3/10/2013. Velocity
is an invention by economists to balance an equation conjured out
of their own imagination, instead of understanding that the purchasing
power of todays fiat currencies is governed solely by the confidence
placed in them. And because they have no intrinsic value, the quantity
theory itself is a wholly inadequate explanation of the relationship
between fiat money and prices....Consider the Icelandic kronas
dramatic fall in purchasing power in October 2008....What actually
happened was simply a collapse in the purchasing power of the krona
that originated in the markets, which had nothing to do with any monetary
Industrial Demand: The Best Is Yet to Come. Posted 3/8/2013.
'supercycle' will last another 15 years: JP Morgan. Posted 3/7/2013.
The basic idea is that the emerging world still has a lot of commodity
intensive growth ahead.
The Economic Recovery: A Novel Perspective from Ed Leamer (The Numbers
Game with Russ Roberts). Posted 3/6/2013. In an era of technological
change, where the microprocessor is causing the destruction of old
How the Markets Are Manipulated. 3/6/2013. As the major stock
indices hit new record highs, many are left wondering how such a bull
market can develop while the average worker faces layoffs, lower wages
and rising costs. The answer presents itself in the documented, admitted
and openly acknowledged manipulations of the markets by governments,
central bankers, and institutional banks. Particularly, the video
documents the manipulation of the gold market.
top, commoditys bottom approaching. Posted 3/6/2013. As
you can see in the next chart, as soon as the dollar began to rally
out of its last intermediate bottom, commodities, including oil and
gold, all began to move down into major intermediate degree declines...
Willie: Raging Gold Bull & Disputed Propaganda. Posted 3/6/2013.
- The propaganda has turned openly laughable.
- The entire global financial structure is crumbling before our
- The global monetary war is heating up notably.
- The US has become Weimar Amerika, a fascist enclave.
More than a crisis, it is more accurately described as a collapse
of a corrupt inequitable monetary system, and a desperate defense
by the major Western bankers to preserve their power over nations
and their governments...
Shift: Middle East Shifting From Oil Exporters To Net Importers!.
Posted 3/5/2013. Saudi Arabia is the 6th LARGEST OIL CONSUMER ON THE
PLANET NOW! The world is suffering a 5% annual decline rate in oil
production. That means they have to add 3-3.5 million barrels a day
to stay FLAT. There have been new oil projects that have come online
but all they have done is to MASK the DECLINE RATE.
ordered 2700 armored trucks. Posted 3/4/2013. This is getting
a little creepy. According to one estimate, since last year the Department
of Homeland Security has stockpiled more than 1.6 billion bullets,
mainly .40 caliber and 9mm. DHS also purchased 2,700 Mine Resistant
Armor Protected Vehicles (MRAP). (30-35,0000 drones are on order--being
built in Starkville, Miss.)
Inflation Secrets Your Broker Wont Tell You About. Posted
3/4/2013. The US Government and the US Federal Reserve downplay the
threat of inflation. There are two primary reasons for this:
- 1) Acknowledging higher inflation would mean both revising GDP
growth much lower...
- 2) One of the primary arguments the Fed uses for why it can
print hundreds of billions of Dollars without hurting consumers
it because inflation remains contained or transitory.
Because of this, you wont see any real acknowledgement of
inflation by the US Government or the Fed until its far too
late. Remember, one of the central goals for these organizations
is to maintain confidence in the system. Indeed, while the mainstream
financial media continues to trumpet the wonders of stocks closing
in on all-time highs, larger, more sophisticated players are preparing
for a financial meltdown in a much larger market: bonds.
Skeptics Questions on Gold Manipulation W/ GATA.org. Posted 3/3/2013.
Near the end of the interview: The manipulation of silver will eventually
end in severe shortages.
Gold Council to teach central bankers how to trade gold. Posted
2/13/2013. Central bankers will be taught how to trade gold at a three-day
seminar on "gold reserves management" to be held in March
at the University of California at Berkeley and co-sponsored by the
World Gold Council.
Wealth Inequality in America. Published 11/20/2012. Infographics
on the distribution of wealth in America, highlighting both the inequality
and the difference between our perception of inequality and the actual
numbers. The reality is often not what we think it is.
$3.3 Trillion FX Reserves Could Buy All Worlds Gold Twice.
Posted 3/4/2013. By comparison, the combined total among Brazil, Russia
and India is $1.1 trillion. Continuing diversification into gold from
the huge foreign exchange reserves by the Peoples Bank of China
and other central banks is a primary pillar which will support gold
and should contribute to higher prices in the coming years.
Central States/Banks Inflate Asset Bubbles, And Why They Implode.
Posted 2/28/2013. Central states live off taxes skimmed from wages
and profits. If wages are stagnant, the state needs profits and capital
gains to rise to support higher tax revenues. In other words: inflate
assets or die. Let's look at some charts that reflect the failure
of massive money-printing and credit expansion to actually boost wages
and household borrowing.
Backwardation Since 2008 = Financial System Died. Posted 2/28/2013.
The Great Global Supply Chain System is now starting to show signs
of buckling. Basically, the worlds retail stores will not be
able to keep stores STOCKED. This also gets worse when we figure in
the decline of NET OIL EXPORTS. You see, American Wages have been
falling for decades. The US Govt realizes the only way they are going
to get additional revenue is from assets profits and capital gains.
Thus, the reason why they are printing. Now, on the other hand, if
they stopped printing, its just more than a Deflationary Collapse
its a DISINTEGRATION OF THE GLOBAL SUPPLY CHAIN SYSTEM. Once the supply
chain starts to break down
the cascading ramifications are just
to horrible to think about.
Could Argentine Bond Battle Spark $20B Bankruptcy? Posted 2/28/2013.
Russell - Gold, Silver, Stocks & Collapsing Incomes. Posted
2/28/2013. The best investment today is owning a business that throws
off income. The second best investment today is a profession that
throws off income (doctor, dentist, lawyer, computer expert, etc.)
The final best investment is a job in an industry that is safe and
stable. Many years go I predicted that in coming years, the most wanted
item would be INCOME.
Pottery Classes, Shrimp On Treadmills And Obamaphones - Bernanke's
Biggest Bloopers Tie It All Together. Posted 2/28/2013. ...the
definitive five minutes comes from this fiery confrontation between
Sean Duffy and the Chairman, in which the republican has obviously
had enough with the monetary policy chief coming in Congress and telling
Congress how to conduct fiscal policy, when it is Bernanke's deficit-monetizing
actions that allow zero-cost borrowing and thus profligate, indiscriminate
spending to result in such lunacy as total US debt just hitting a
me, this time is different
Posted 2/28/2013. By 1789, a
lot of French people were starving. Their economy had long since deteriorated
into a weak, pitiful shell. Decades of unsustainable spending had
left the French treasury depleted. The currency was being rapidly
debased....the French monarchy was dangerously out of touch with reality...eventually
losing their heads in a 1793 execution. But it took the French economy
decades to finally recover. Along the way, the government tried an
experiment: issuing a form of paper money.
As French Assemblyman M. Matrineau put it in 1790, Paper money
under a despotism is dangerous. It favors corruption. But in a nation
constitutionally governed, which itself takes care in the emission
of its notes [and] determines their number and use, that danger no
longer exists. Translation: This time is different. Were
different. Were smarter. We wont suffer the same fate.
Within a few years, hyperinflation had taken hold in France. A measure
of flour that sold for two francs in 1790 was selling for 225 francs
by 1795. Everything soared. Carriage hires. Butter. Sugar. Everything....the
French government imposed every control in the book price controls,
capital controls, information controls, people controls. They confiscated
lands, they filled the prisons, they waged genocide against their
Want To Tag Us Before They Bag Us. Posted 2/25/2013. If President
Obama, John McCain (R., AZ), Lindsey Graham (R., SC), Marco Rubio
(R., FL), Lindsey Graham (R., SC.), Charles Schumer (D., NY.), Jeff
Flake (R., AZ.), Michael Bennet (D., CO.), and implicated child molester
Robert Menendez (D., N.J.), get their way, it will soon be law that
if you want to board an airplane, to vote, to purchase a firearm,
hold a job and basically buy and sell anything, then you will be required
to submit to a National ID Card which will soon become part of a global
silver coins acceptable forms of payment? Posted 2/21/2013. The
Senate Finance Committee on Wednesday took the first steps to making
such [privately minted gold and silver] coins legal tender in Arizona.
SB1439 would give them the same legal status as bills and coins authorized
- Here Is The Good News. Posted 2/21/2013. The results of analysis
of the "death cross" formations in gold since 1972 suggest
that there is little difference with an average day during the same
period. Since 1972, gold passed through 22 death cross
formations which returned between 1.29% (in the month after) and 3.17%
(in the following six months).
Men Who Built America: Remembering The Gilded Age Part 1. Posted
2/21/2013. History Channel program of John D. Rockefeller, Cornelius
Vanderbilt, Andrew Carnegie, Henry Ford and J.P. Morgan.
Forces That Will Push Silver Over $100. Posted 2/21/2013.
- Investment demand
has been and will continue to be the driving force behind the
rising price of silver. One area that denotes increased investment
demand is official coins produced by the government
mints. According to the data provided by the 2012 World Silver
Survey, total global silver investment demand has risen from only
31.6 million oz in 2002 to a staggering 282.2 million oz in 2011.
- The top 6 silver miners in the world have seen their average
yield decline 34% in six years from 13 oz per tonne in 2005 to
only 8.6 oz/t in 2011. As ore grades and yields decline, it takes
more energy to produce the same or less silver.
- Once the world s liquid energy supply starts its inevitable
decline from its current plateau, annual silver metal production
will decline as well (or may follow soon thereafter).
Climate Change in 12 Minutes - The Skeptic's Case. Posted 2/20/2013.
It's not about Science, but about Politics and Power.
Top in Stocks and Major Bottom in Gold. 2/20/2013. The author
expects a similar pattern to the 2007-2008 for the stock market and
oil, but this time it will be the stock market and precious metals.
Faber - Major Bottom Forming In Gold But Stocks Shaky. Posted
2/21/2013. The "Great Asset Inflation" since 1980 of stocks,
bonds, and real estate may be coming to an end. This is a great opportunity
to increase one's position in gold.
Hidden Meaning in the New $100 Bill (by Bix Weir) Posted 3/15/2012.
The text: The
Hidden Meanings in the New $100 Bill!
Regular Morning Mugging. Posted 2/20/2013. From our perspective
here at Peak Prosperity, for all of the reasons explored in the Crash
Course and discussed here daily, we firmly believe that fundamentals
will ultimately matter most. And when they fully express themselves,
there will be a tremendous re-pricing of assets largely higher
for tangible assets that require energy to obtain, and markedly lower
for paper claims on wealth (stocks, bonds, and their derivatives).
But as we've often said, the corrective process may very well take
much longer than we ever expected to arrive. Frankly, we're amazed
that the system has held together so well over the past 5 years with
all of the thin-air money printing, trillion-dollar deficits, and
Forget the Death Cross, Gold Is a Buy: Pento. Posted 2/20/2013.
Negative interest rates are here to stay, given Bernanke's targets
for inflation. Central banks continue to buy gold. Our national debt
will continue to increase. All of these signs are bullish for gold.
The current pullback, although steep and unexpected, should be regarded
as a buying opportunity.
Truth: The Freedomain Radio Documentary - Teaser. Posted 2/19/2013.
Everything we try to fix only gets worse: Education, Poverty, Retirement,
Gross sees U.S. economy on road to extinction. Posted 1/31/2013.
U.S. government, corporate, household and personal debt is now $56
trillion, a monster that needs ever increasing amounts of fuel, Gross
said, calling it a "supernova star that expands and expands,
yet, in the process begins to consume itself."
Will Debt Jubilee Look Like? Posted 2/17/2013. Unfortunately,
the debt Jubilee will be for the Oligarchs. The peasants will still
HAARP -- There Are 34 of Them! Posted 2/13/2013. Used to disable
enemy war missiles, according to this electric engineer. Also talks
about Japan's Fukishima disaster.
Global Endgame in Fourteen Points. Posted 2/15/2013. An over-indebted,
overcapacity economy cannot generate real expansion. It can only generate
speculative asset bubbles that will implode, destroying the latest
round of phantom collateral. Also see: (YouTube)
03-05-13-Macro Analytics - The Global End Game - with Charles Hugh
Silver Pacifier. Posted 2/15/2013. Questions: (1) Is the Silver
market rigged? (2) How is it done? (3) Why are they doing it? (4)
When will it end? Answer for #4: The market rigging will end when
the benefits of printing unbacked fiat money no longer outweigh the
Worry, Be Resilient. Posted 2/14/2013. Perhaps the wiser response
is dont worry; be resilient. The resilient household
can be happy not only in the present surplus of energy, entitlements,
goods, and services, but can also thrive in a future where the current
surplus of cash, credit, and speculative gains has dried up. The easiest
way to increase resilience is to reduce fragility and vulnerability.
End in Sight for Global Currency Wars. Posted 2/14/2013.
So far, five central banks, - the Federal Reserve, the European Central
Bank, Bank of England, the Bank of Japan and the Swiss National Bank
have effectively created more than $6-trillion of new currency over
the past four years, and have flooded the world money markets with
excess liquidity. The size of their balance sheets has now reached
a combined $9.5-trillion, compared with $3.5-trillion six years ago.
The Philosophy of Liberty. Posted 12/3/2006. John Locke: Start
with the idea that we "own" ourselves and, therefore, we
own the fruits of our labor. You exist in time (past, present, future).
This is manifest in property (past), liberty (present), and life (future).
To lose life is to lose your future. To lose liberty is to lose your
present. To lose property is to lose your past.
The real climate threat. Posted 2/13/2013. From CorberttReport.com.
The environmental movement has developed a single-minded obsession
with the supposed effects of carbon dioxide on the global climate.
Rather than CO2 gas, however, the technologies that are now being
proposed to mitigate this supposed problem might be the real cause
of our coming environmental calamity.
Real Reason the Economy Is Broken (and Will Stay That Way). Posted
2/13/2013. The best I can tell you is that the markets are reflecting
liquidity, not reality, and that until and unless the world suddenly
starts to produce a lot more crude oil and the U.S. and Europe increase
their consumption of it, I will remain quite skeptical of all pronouncements
of recovery in the West.
Economic Advisers Forecast War and Unrest. Posted 2/13/2013. Kyle
Bass, Larry Edelson, Charles Nenner, James Dines, Nouriel Roubini,
Jim Rogers, Marc Faber and Jim Rickards Warn or War
is what textbook capital controls look like. Posted 2/12/2013.
Cristinas policies in Argentina are leading to shortages in
everything from food to fuel to electricity. Hardly a month goes by
without major strikes and disruptions to public services. The purchasing
power of their currency is diminishing rapidly. And most people are
completely trapped. Just since 2010, President Cristina Fernandez
- Nationalized private pensions, plundering the retirement savings
of her people.
- Increased tax rates across the board income, VAT, import
duties, etc. as well as imposed a new wealth tax.
- Inflated Argentinas money supply, printing currency with
wanton abandon; M2 money supply has increased 215% in the past
- Driven the value and purchasing power of the currency down by
50%. Street-level inflation is now 30%+ per year.
- Made a mockery of official statistics, comically understating
the level of Argentine inflation and unemployment. She even began
punishing economists for
- publishing private estimates of inflation that didnt jive
with the government figures.
- Taken over control of one industry after another, most notably
the nationalization of Spanish oil firm YPFs Argentine assets.
- Imposed export controls of agriculture products from beef to
grains, forcing growers to sell at artificially lower domestic
- Imposed capital controls, reducing her citizens capability
to dump their poorly performing currency and hold gold, dollars,
euros, or anything else.
- Imposed a two month price freeze on items in the
supermarket, and encouraged retail consumers to rat out any grocer
that doesnt abide by the government order.
- Imposed controls over the media, most recently ordered an advertising
ban in Argentine newspapers (weakening their financial position).
- 1,000 Ton Swing In Gold, Russians & Chinese Buying. Posted
2/11/2013. I had always agreed with a number of mining executives
that believed we were at peak gold production. But now I take it one
step further. The juniors that do the exploration in the mining sector
have been literally devastated, and half to a third of them will go
totally out of business in the next 12 months. In that instance I
dont think were going to be finding much new gold at all.
So consequently, as these existing mines get depleted and all mined
out, I think production will fall dramatically, irrespective of what
the gold price does. When you put that in the perspective of central
banks, which have gone from being large suppliers of gold for years
and years and now they are taking gold out of the market, youve
had a swing of at least 1,000 tons per year in central bank activity.
When you put this into the context of a market thats only about
4,000 tons per annum, and then you add to this the fact that future
gold production is literally set to plunge, I think there is no choice
but for the price of gold to go ballistic on the upside. Its
just a matter of how long these paper shenanigans can continue. Once
these (paper shenanigans) are over, and they will certainly be over
at some point, the price will go up by multiples of the current level.
leaders do believe in the invulnerability of the dollar system, but
they are misguided' - James Rickards. Posted 2/11/2013. Excellent
interview with Mr. Rickards. It hits all the high points.
Currency War, Part I. Posted 2/11/2013. We see U.S. spending
even with all the $trillions spent on its endless wars roughly
flat. Subtract the spending on its military expeditions, subtract
the spending on interest payments to the Financial Overlords, subtract
the $100s of billions per year in direct and indirect corporate
subsidies; and spending on people (in real dollars) is obviously plummeting
Cashin - Key Indicator That Just Spiked Is Huge Warning. Posted
2/11/2013. You go back and look at history, you look at things like
the Weimar Repulbic in Germany in the 20s. There it was very strange
too because they actually printed money, and for months no inflation
showed up, even though the money supply was increasing and increasing.
Somebody once asked a famous literary character (who lived through
the Weimar hyperinflation) how did he go broke? He said, Slowly
and then suddenly. The Weimar Republic saw inflation develop
very slowly, and then suddenly. Once it developed it was almost like
Zimbabwe except it was in a major nation, and destroyed the moral
values of a whole civilization and basically led to the underpinnings
of World War II.
Four Signs of a Collapsing State. Posted 2/11/2013. Government
seeks control over four institutions: education, communication, money,
and security. Regarding security: there is the need to monopolize
the provision of security, which means controlling courts, police,
and justice. The idea here is to be able to tell the population that
the government is keeping everyone safe. If government is not there,
terrible things will happen: monsters will take over. Thirty years
ago, the police were not militarized, the courts were not clogged
to the point of being useless, the jails were not full to capacity,
and there was a sense that the system was flawed but essentially workable.
That is no longer true. After 9-11, the state overreached and militarized
the entire security system in this country, thereby exposing its essential
nature. More and more people are catching on to the reality that the
security system is not there to protect us but rather to protect the
state itself from us.
The Banking Elite Want Riots in America. Posted 2/11/2013. Every
indication clearly suggests that authorities in the United States
are preparing for widespread civil unrest. The signs: NDAA legislation,
The DHS spying on social media. The NSA building hug spy center in
Utah. Preparing drones for the U.S. The DHS purchased over 1.6 billion
rounds of ammunition in the last 10 months. At the height of combat
operations in Iraq, the U.S. Army only used 5.5 million bullets a
month. Why has the DHS stockpiled enough bullets for a 30 year war
if it is not preparing for some form of domestic disorder?
Are robots hurting job growth?. Posted 1/13/2013. Quotes:
- Percentage of Americans
with jobs is at a 20-year low
- Routine middle-skill
jobs are being eliminated fastest
- Software robots and
physical robots replace wanted jobs
- There are heavily
automated warehouses where there are no human workers, right now
- "You'd think
the robots would run into each other but it never happens"
- One robot saves 1.5
- New Categories of
jobs are in the sights of automation
- eDiscovery replaces
- US manufacturing is
making a comeback, but without the jobs
- Investment in robots
has increased 30% since the recession ended
- Baxter costs $22,000
and can be trained in a matter of minutes
- Baxter costs $22,000
and lasts 6,500 hours, about $3.40 per hour
- Buying a robot is
like hiring a Chinese worker
- "Workers in China
and India are more in the bulls-eye of the automation tidal-wave
than the American worker"
- Even if manufacturing
returns to the US most of the jobs will go to robots
- "Work as we currently
think of it will be largely done by machines"
- What people will do
is the $64,000 question
Currency War & USDollar Rejection. Posted 2/7/2013. The crux
of the non-US$ trade vehicle devised as a USDollar alternative will
be the Gold Trade Note. It will enable peer-to-peer payments to be
completed from direct account transfers independent of currency, and
most importantly, not done through the narrow pipes and channels controlled
by the bankers with their omnipresent SWIFT code system among the
world of banks. The Gold Trade Note will act much like a Letter of
Credit, serve as a short-term bill, and maybe even push aside the
near 0% short-term USTreasury Bills that litter the banking landscape....The
new trade notes will involve posted gold as collateral, whose entire
system for trade usage will bear a massive gold core that also will
include silver and platinum, maybe other precious metals.
The exit strategy for the US Federal Reserve might be extremely simple,
enabled by the heavy Big Brother hand. Over $19 trillion in private
pension funds in IRAs, 401ks, and Keoughs might be forced out of their
current positions and dragged into a new special USGovt Bond that
is backed by unwanted USTBonds racked by QE storms and worthless USAgency
Mortgage Bonds racked by lost collateral that the big US banks eagerly
dumped on the USFed.
This Time Wont Be Different For Japan In Two Charts.
Posted 2/6/2013. This epic difference is...that some 55.6% of all
Japanese assets are in currency and deposits, compared to just 14.3%
in the US. And this is where it all begins and ends.
Mint Sells 8.2 Million Silver Eagles Over First 17 Days of 2013 Production!.
Posted 2/6/2013. The Mint has now sold a whopping 8,173,500 silver
eagles during a mere 17 business days in operation during 2013, nearly
25% of the entire annual sales for 2012 of 33 million!
Economics in One Lesson XIII: Government Price Fixing. Posted
10/20/2011. The problems with price fixing from economic terms. Learn
all you need to know in 5 minutes.
in Combat. Posted 2/5/2013. The minimum requirement for 17- to
21-year-old males is 35 pushups, 47 situps and a two-mile run in 16
minutes, 36 seconds or less. For females of the same age, the minimum
requirement is 13 pushups, 47 situps and a 19:42 two-mile run. Why
the difference in fitness requirements? "USMC Women in the Service
Restrictions Review" found that women, on average, have 20 percent
lower aerobic power, 40 percent lower muscle strength, 47 percent
less lifting strength and 26 percent slower marching speed than men.
Wants to Mint Its Own Coins. Posted 2/5/2013. Virginia's House
of Delegates agreed yesterday to set up a $17,000 panel to explore
the move, reports the Washington Post. The Virginian-Pilot sees the
measure by Republican Bob Marshall as a "conservative shout-out,"
but Marshall insists he's serious. Here is Marshall's
Imports Record Amount Of Gold In December On Price Drop. Posted
2/5/2013. This means that for all of 2012, total China imports of
gold have hit a staggering 834.5 tons, double the 431 tons in 2011,
and that the PBOC's determination, whose official holdings are still
a laughable 1054 tons, when in reality they are likely 3-4 times greater,
to convert to a commodity-backed currency the day it decides to become
the world's reserves currency, as we predicted back in 2011, is as
steadfast as ever. Recall from the December 2009 edition of China
Youth Daily, which we reported previously that State Council advisor
Ji was saying "that a team of experts from Beijing and Shanghai
have set up a "task force" last year to consider growing
China's gold reserves. "We suggested that China's gold reserves
should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons
in 8-10 years," the paper quoted him."
Freezes Supermarket Prices To Halt Soaring Inflation; Chaos To Follow.
Posted 2/4/2013. Summary: first capital controls, then a currency
crisis, then expectations of sovereign default, then a rise in military
tensions, and finally - price controls, after which all out chaos
usually follows.Study this sequence well: it is coming to every
"developed" country near you in the months and years ahead.
Why Are Voters So Uninformed?. Posted 1/29/2013. It's completely
rational to be uninformed about politics.
Financialization of Food & the Profitability of Poverty. Posted
The Mortgage Payment Structure. Posted 9/23/2009. Before the creation
of the modern mortgage program in 1934 (deep in the Great Depression),
a 50% down payment was required to purchase a home. (Also, homes were
generally paid off in a few short years.) The average home owner in
the U.S. stays in a home for six years. The average home owner with
a 30-year mortgage may think he or she will have a 20% equity stake
after six year rather than the 14% they will actually have (assuming
a 3% interest rate). They look at the low interest rate and think
they're getting a good deal rather than the amortization schedule
that determines how much equity they are actually buying at that rate.
Halfway through a 30-year mortgage, the homeowner has only accumulated
39% equity in the home (again, assuming a 3% interest rate). Not surprisingly,
this arrangement favors the banks.
gigapixel ARGUS-IS. World's highest resolution video surveillience
platform by DARPA. This is probably what the drones will be used
for over the U.S.
Taleb Talks Antifragile, Libertarianism, and Capitalism's Genius for
Failure. Posted 1/20/2013. A lot of interesting ideas in this
interview. For example, we don't need to grow an economy on debt--debt
has systemic consequences while equity does not. Debt has traditionally
blown up systems (debt jubilees) and has been used to wage war. Equity
was used throughout history to start ventures. Capitalism is allowing
people to make mistakes or being responsible for their mistakes. The
bigger the scope of government (i.e. nation-states versus city-states),
the bigger the probability of making big mistakes and being wiped
out. "Small governments love commerce and large governments love
Inside Look At The World's Biggest And Most Successful "Beta"
Hedge Fund. Posted 1/23/2013. This is an important insight. While
there are thousands of investment products, there are only three moving
parts in any of them. Consider buying a conventional mutual fund.
The investment may be marketed as a large cap growth fund.
The reality is that the return of that product, or any product, is
a function of a) the return on cash b) the excess return of a market
(beta) above the cash rate and c) the tilts or manager
stock selection (alpha). The mutual fund blurs the distinction between
the moving parts, which makes it hard to accurately assess the attributes
of any one part or the whole. In summary: return = cash
+ beta + alpha.
Here is an article attempting to mimic the Bridgewater strategy using
various funds: Bridgewater's
All Weather Portfolio Vs. Harry Browne's Permanent Portfolio
Weather Portfolio Construction. Basically, the concept
deals with the possible four corner economic cycles: GROWTH
(Rising): Stocks, High-Yield Bonds, and Convertibles; INFLATION
(Rising): TIPS, Gold, Commodities; DEFLATION (Falling): Bonds;
SAFE HARBOR: Cash, Short-Term Bonds. Here is a discussion on
the strategy: Bogleheads
Forum: Bridgewater's All Weather Portfolio
Ray Dalio's key points:
- Investors should setup an all weather portfolios, assuming that
you dont know what the future is going to hold.
- The all weather portfolio should cover two scenarios: growth
- How stocks and bonds perform in the growth and inflation scenarios:
When growth is slower-than-expected, stocks go down. When inflation
is higher-than-expected, bonds go down. When inflation is lower-than-expected,
bonds go up.
- So the weather portfolio should consist of have four different
portfolios essentially that make up your entire portfolio that
gets you balanced. Because in every generation, there is some
period of time, theres a ruinous asset class, that will
destroy wealth and you dont know which one that will be
in your life time.
Banks Are Breaking the Poor for Food Profits. Posted 1/23/2013.
Global food prices have more than doubled since 2003 and volatility
is through the roof. While some of the changes can be attributed to
droughts, inflation or ethanol production, new studies are placing
a majority of the blame squarely on financial profiteering by large
firms such as Goldman Sachs. A report from the World Development Movement
estimates the company collected $400 million of profits in 2012 as
a result of out-sized futures contracts.
Ton Gold Repatriation Hits JP Morgan London Vaults. Posted 1/23/2013.
If you look back through time at inflationary crisesfrom ancient
Rome, to Ming China, to revolutionary France and America or to Weimar
Germanyyou'll find that uncontrolled inflations are caused by
overleveraged governments which resorted to printing as the easiest
way to avoid explicit default (whereas inflation is merely an implicit
default). Some argue that equities hedge against inflation because
they are a claim on real assets, but most of the great bear market
troughs of the 20th century occurred during inflationary periods.
A more obvious inflation hedge is inflation linked bonds, but governments
can default on these too. More exotic insurance products like sovereign
CDSs, inflation caps, long-dated swaptions or upside yield curve volatility
all have their intuitive merits. But they all come with counterparty
risk. Physical gold doesnt. Indeed, during the 6000
year gold bubble no one has defaulted on gold. It is the one
insurance policy which will pay out when you really need it to.
Bars Being Secured By HSBC Buy $876 Million Worth From Poland.
Posted 1/23/2013. HSBC has secured another deal to buy silver bars
from KGHM which brings their total purchases of silver from KGHM alone
in the last 12 months to $876 million or PLN 3.65 billion. KGHM is
one of the largest producers of silver in the world and is the second-largest
producer of refined silver in the world.
Dirty Wars: Jeremy Scahill & Rick Rowley's New Film Exposes Hidden
Truths of Covert U.S. Warfare 1/2. Posted 1/23/2013.
MarketTicker) Central Banks Repatriate Gold: How Will This Affect
Investors? Posted 1/23/2013. Interview with Jim Rickards.
Real Housing Recovery Story. Posted 1/22/2013. Currently, there
are still more than 25% of homeowners underwater which limits their
ability to move, refinance or sell their homes. However, as prices
rise, there are two issues that begin to attack the housing story:
1) As prices reach levels where underwater homeowners can sell they
will likely do so out of a psychology need to escape the "trap,"
which will bring a large supply of homes back onto the market, and;
2) rising prices will eventually erode the profitability of buying
homes for rentals which will bring the speculative frenzy that has
been the driver of the recent recovery to a halt.
The Fundamentals for Owning Silver in 2013. Posted 1/22/2013.
Duration: 1:31. Short and sweet. Silver is more rare than gold. Above
ground today is around 1 billion ounces compared to 1950 (10 billion
ounces) and 1980 (3.5 billion ounces). Compared this to gold where
above ground inventory in 1950 was 1 billion oz. and today it is about
6 billion oz. Yet, the demand in dollar terms for both gold and silver
are equal--that is, demand is 50:1 in favor of silver. On the mining
side: Silver is mined at around 1 billion oz. and gold at around 100
million oz. or a ratio of 10:1.
the 'toxic' gene hiding in GM crops: Revelation throws new doubt over
safety of foods. Posted 1/22/2013. A new study by the EU's official
food watchdog, the European Food Safety Authority(EFSA), has revealed
that the international approval process for GM crops failed to identify
the gene. Highlights: 54 of the 86 GM plants approved contain the
dangerous gene. Gene found in food for farm animals producing meat,
milk and eggs.
Claim: The New Litmus Test Of Leadership In The Military Is
If They Will Fire On US Citizens Or Not. Posted 1/22/2013.
One Chart That Explains the Massive Risk of Investing in Gold &
Gold Stocks. Posted 1/22/2013. S&P500 has essentially been
flat over the last 10 years. Gold and Gold Stocks have gone up 5 and
10-fold over the same time period.
Mickelson and Glenn Beck get it. Posted 1/22/2013. The popular
media personality, Glenn Beck, has recently announced that he is planning
a $2 billion libertarian community somewhere in Texas that will generate
its own power and grow its own food.
Statistics Which Show How Four Years Of Obama Have Wrecked The U.S.
Economy. Posted 1/21/2013.
Rich Pickings: Goldman Sachs cashes in, world on brink of food crisis.
banks: flush with paper money; low on real money. Posted 1/21/2013.
Includes James Turk's Gold Money Index. "Plug both these figures
into the Gold Money Index formula ($10,778,740,000,000 of currency
divided by 31,575 tonnes of gold) and you arrive at a fair price of
$10,617 per ounce."
Anarchast Ep. 52 with James Turk. Posted 1/17/2013. Good long
interview with James Turk. Deep in the interview Mr. Turk changes
his prediction on gold to reach $11,000 instead of his previously
predicted $8,000 several years ago.
Exploding Grenade Will Create A Gold & Silver Surge. Posted
1/21/2013. By Michael Pento. Goes into detail (in layman's terms)
on the Japanese debt time bomb.
Return of Silver Eagle Rationing. Posted 1/18/2013.
11 Silver Flashpoints. Posted 1/18/2013.
- When Obama was inaugurated in January 2009, the number of SNAP
(i.e. food stamps or Supplemental Assistance Nutrition Program)
recipients was 31,939,110. By October 2012, the latest month reported,
they had jumped to 47,525,329.
- The number of Americans receiving money directly from the federal
government each month has grown from 94 million in the year 2000
to more than 128 million today.
- When Barack Obama first entered the White House, 60.6 percent
of all working age Americans had a job. Today, only 58.6 percent
of all working age Americans have a job. Also, although the unemployment
rate is officially 7.8 percent (U3), the real rate is somewhere
between 15% (Broadest, U6) and 23% (SGS Alternate U6) depending
on what numbers you are looking at.
- Median household income in America has fallen for four consecutive
years. Overall, it has declined by over $4000 during that time span.
- Approximately 53 percent of all U.S. college graduates under the
age of 25 were either unemployed or underemployed in 2011.
- According to the Economic Policy Institute, the United States
lost 2.7 million jobs to China from 2001 to 2010.
- The United States has fallen in the global economic competitiveness
rankings compiled by the World Economic Forum for four years in
a row. The United States is now in 7th place. It was number 1 in
- According to the World Bank, U.S. GDP accounted for 31.8 percent
of all global economic activity in 2001. That number declined steadily
over the course of the next decade and was only at 21.6 percent
in 2011. From almost a 1/3 of world GDP to only 1/5 of world GDP.
- For the first time ever, more than a million public school students
in the United States are homeless. That number has risen by 57 percent
since the 2006-2007 school year.
- Families that have a head of household under the age of 30 now
have a poverty rate of 37 percent.
- Health insurance costs have risen by 29 percent since Barack Obama
- The total amount of money that the federal government gives directly
to the American people has grown by 32 percent since Barack Obama
- The U.S. government has run a budget deficit of well over a trillion
dollars every single year under Barack Obama.
- During Obama's first term, the federal government accumulated
more debt than it did under the first 42 U.S presidents combined.
Bass: Japan's 'Debt Time Bomb' Tell. Posted 1/18/2013. In 18 to
24 months the Japenese bond market will detonate. Approximately 20%
($340 billion) of Japanese exports go to China and China is rapidly
reducing this as a result of tensions between them. Japan's GDP is
dropping at an alarming rate and exports are collapsing.
Business) David Stockman on Entitlement Reform. Posted 1/17/2013.
Excellent solution to the U.S. budget deficit.
Ted Butler's Silver Panic Imminent? Apple Contractor Claims New iMac
Production Delayed Over Silver Shortage!. Posted 1/18/2013.
Mint Temporarily Sold Out of 2013 Silver Eagles. Posted 1/17/2013.
The United States Mint has informed authorized purchasers that 2013
American Silver Eagle bullion coins are temporarily sold out. This
follows intense demand for the silver bullion coins since the initial
release on January 7, 2013. On the first day of availability for 2013-dated
Silver Eagles, authorized purchasers had placed orders for 3,937,000
of the one ounce coins. This seemed to mark the highest one-day sales
in the entire history of the program.
from The Coming Storm Gold, Silver, and Real Assets. Posted
- Physical redemption. Prices skyrocket.
- Procrastination buyers jump in. Currently, less than 1% of the
population is invested in silver. What will happen when 15% of
the population seeks to invest in silver?
- Silver retailers sellout.
- Smart silver retailers shut doors.
- Momentum monkeys smell blood. They will drive up the price.
- JP Morgan - The Ultimate Silver Buyer? JPM will reverse position
and become the leading buyer.
- Institutional sellers stop supply of silver. They will no longer
- Miners hold onto physical silver. They keep it as an investment
or as profits from other mining metals.
- Corporate panic buying, especially those who use silver in their
- Nationalizations. China has essentially nationalzed its gold
and silver mining. Other nations will do the same.
- The anti-hegemon makes its move. China, Russia and other countries
will have the upper hand.
things to watch in 2013. Posted 1/17/2013. (1) The yield on the
10-year T-note climbs above 2%. (2) The gold/silver ratio falls below
50. (3) The Federal Reserve balance sheet starts growing. My expectation
for 2013 is that gold will probably rise at least 20%. Silver will
also do better than its 12-year average of 20.1% per annum. Im
not going to try predicting how high silver will rise. Rather, I will
just re-affirm my longstanding expectation that when silver finally
clears resistance around $36-$37, it will jump to $68-$70 in 2-to-3
months. Its inevitable breakout above $50 will mean that silver has
entered the second stage of its bull market.
Really, Really Big Picture. Posted 1/16/2013. There isn't going
to be enough net energy for the economic growth we want.
the Innovation Premium Is Diminishing. Posted 1/16/2013. The price
and features offered by the innovator and its competitors will converge
much faster than in previous eras. From one point of view, the recent
weakness in Apple shares may reflect this trend: Apple's ability to
charge a high premium is degrading faster than many expected.
The Silver Manipulation MUST End by Ted Butler. Posted 1/16/2013.
There is far less above ground silver in the world than there was
25 or 75 years ago. Twenty five years ago, there was close to three
billion oz in silver bullion inventories and seventy five years ago
there was ten billion oz. Today, theres only a bit over one
Playing With Fire-Laurence Kotlikoff. Posted 1/16/2013. Dr. Kotlikoff
says, The situation is getting worse and worse and worse. We
are running a massive six decade Ponzi scheme, and its coming
to a real threatening point. Dr.Kotlikoff calculates the real
government deficit is enormous and its growing exponentially.
Its $222 trillion. Last year it was $211 trillion. We
grew the deficit by $11 trillion in one year, charges Dr. Kotlikoff.
News: OMFIF Report Advocates the Official Remonetization of Gold.
Posted 1/14/2013. In a report published today, the Official Monetary
and Financial Institutions Forum (OMFIF), a global organization of
central banks and sovereign wealth funds, recommends that gold be
remonetized for use as international money, alongside major currencies....Globally,
interest rates may now be on the way up. Dollars, euros, yen, sterling,
etc, will now need to compete more directly with gold for use not
only as reserves but as actual international money to be used to settle
international balance of payments transactions between countries.
Inflation Prompted Stampede into Silver and Gold Presaged by Warburg
Sale. Posted 1/14/2013. When the number of committed opinion holders
is below 10 percent, there is no visible progress in the spread of
ideas. It would literally take the amount of time comparable to the
age of the universe for this size group to reach the majority. Once
that number grows above 10 percent, the idea spreads like flame. Kyle
Bass interview referenced: (YouTube)
AC2012 The Engtanglement KB. Also listen to Kyle Bass on Japan:
UVIC 2012: A Conversation with Kyle Bass.
Raid Forests In Search Of Wood To Heat Homes. Posted 1/14/2013.
The Near-Record Equity Inflow In Context. Posted 1/14/2013. In
the first week of the year (2013) there was a massive, $22 billion
allocation to equities, second only to the $23 billion dumped into
equity funds in the third week of September 2007. What happened the
first time we such such an epic injection? Answer: A steady decline
lasting a year to the crash of September 2008.
Begins: Bundesbank To Commence Repatriating Gold From New York Fed.
Posted 1/14/2013. German Handelsblatt reports in an exclusive that
the long suffering German gold, all official 3,396 tons of it, is
about to be moved. In brief: this is a momentous development, one
which may signify that the regime of mutual assured and very much
telegraphed - because if the central banks don't have faith in one
another, why should anyone else? - trust in central banks by other
central banks is ending.
Crisis Signals Imminent Hyperinflation. Posted 1/14/2013. The
Western Agriculture Model based on (direct and indirect) farm subsidies
and devaluing "money". This results in a (worldwide) collapse
of food inventories. Theres still one final dimension of insanity
to the subsidy-distorted global food production model. In our modern
world, dominated by Western agricultural corporations shipping their
products (literally) halfway around the world; roughly ¼
of the global food supply spoils in transit. Obviously without
massive Western subsidization, much more of the global food supply
would be grown locally. If that were to happen, the percentage of
global food production wasted by spoilage in transit would be sure
to plummet. Instead, we have the Western Agriculture Model. Countless
millions of small farmers bankrupted, and doomed to poverty and/or
slavery. Insane/dangerous over-concentration of agricultural production
in Western (corporate) agricultural production. An unbelievable percentage
of total, global food production completely wasted as a direct
result of Western agricultural imperialism. At the end of it all:
the collapse of the global food supply; a massive, global food-supply
crisis; and a resulting price-shock for food prices which will doom
countless millions to starvation. And after all of that, the bankers
worthless Western currencies are still certain to plummet to zero
via the ensuing hyperinflation.
gold prices push India's farmers toward silver. Posted 1/11/2013.
In some parts of India, they are buying more silver than gold in dollar
Record $220 Billion "Deposit" Injection To Kick Start To
The 2013 Market. Posted 1/10/2013. The article shows that excess
reserves deposited into banks either by the public or the Fed is being
used by banks to buy stocks. Thus, there is *no* sideline money sitting
in the banks. The banks have allocated it into investments.
"...money sitting in deposits is used by the banks to ramp the
market, courtesy of the unwind of Glass-Steagall."
Jim Grant Exposes The Bureau Of Money Materialization
And A Submerging America. Posted 1/10/2013. Our fiscal problems
are enormous and yet the Federal Reserve, that is "The Bureau
of Money Materialization," can print money (materialize dollars
on a screen), removing the fiscal constraint too; so what we have
is a fiscal problem when the underlying problem is monetary. With
the decidely un-Hamiltonian Lew now in charge and a hyprocritical
'bewailing the debt' Obama now wanting no limits, our future is in
the hands of foreigners he warns - and the debt markets will only
react when they grasp exactly how big a trillion really is.
Propaganda Exposed. Posted 1/10/2013. Peter Schiff shows how distorted
(under-reporting) the CPI numbers are over the last 10 years. Basically,
the government is lying to us. See video: (YouTube)
Inflation Propaganda Exposed.
Leonard Cohen - Everybody Knows (Lyrics). Cynical view of the
world as we know it. Written in 1988 but still relevant today. This
blog describes the history behind the words: Everybody
Are Getting Ready: No Obvious Reason For Why China Is
Massively Boosting Stockpiles of Rice, Iron Ore, Precious Metals,
Dry Milk. Posted 1/9/2013. If a 400% year-over-year increase in
rice stockpiles isnt enough to convince you the Chinese are
preparing for a significant near-term event, consider that in Australia
the countrys two major baby formula distributors have reported
they are unable to keep up with demand for their dry milk formula
products. Grocery stores throughout the country have been left empty
of the essential infant staple as a result of bulk exports by the
Spain, The Fed & Treasury Will Pull Out Nuclear Option & Raid
Private Pension Funds. Posted 1/9/2013. If the federal government
ever had a failed bond auction the Fed and Treasury are very likely
to pull out the nuclear option. They will raid our private pension
funds, just like Spain. They may even take foreign pensions invested
in domestic funds. Thats also on the table. This $6-8 trillion
pool of private IRAs and 401Ks is the only large source of funds left
outside the MMAs multi trillion dollar pools. The owners of the IRAs
will be compelled, first slowly and then more rapidly, to move their
hard earned monies into GRAs or other annuity funds. They will be
taken under the guise of Fairness, Duty and Patriotic necessities.
The NDAA is just the mechanism to provide legal cover. The law is
set. Once the trigger is pulled it will be too late to stop this theft.
- A hurricane of digital money created by central banks to purchase
government debt and other dodgy assets from banks.
- A tidal wave of deficit spending by governments around the world.
- A perfect storm of derivatives.
- A tornado of bailouts, giveaways, loans, and currency swaps
from the Federal Reserve.
- An approaching thunderstorm of new and higher taxes.
- A tsunami of Japanese Yen.
The removal of pension funds is now established policy in Europe.
On January 4, 2013, the Wall Street Journal reported that Spain is
draining the fund that backs their pensions. Spain holds about $86
billion in pension funds. Its quietly removing the richest source
of money, called the Social Security Reserve Fund, to handle present
obligations. 90% of this $86 billion has been siphoned off to date,
sometimes in $3 billion amounts.
As Spain raids the Reserve funds set aside for pension payments in
order to stopgap and fill large budget deficits, the 5% bonds are
destined to assume Greek-like devaluation. For examples of other countries
who have looted pension funds we need look no further than Argentina,
where the government expropriated $30 billion to pay for government
overhead. Portugal took $6.9 billion in private pensions the year
before. Spains removal of this $75-80 billion may be the largest
of its type in modern history but it will not be the last. It is a
virtual certainty that when Spains financial difficulties come
to a head, and they are getting worse, not better, the pension recipients
will see a 50% drop in their income, just like the Greek pension haircuts.
Just 1% Of Japanese Pension Assets Shift Into Gold, The Gold Market
Would Explode. Posted 1/8/2013. It looks like Japanese pension
funds will start buying gold in sizeable quantities in the coming
Promise I Will Rob You a Little Less Than The Others. Posted 1/8/2013.
Some 5,000 super-rich Frenchmen have left France, due to the high
taxes. The most notorious of which is famed French actor Gerard Depardieu.
Economics 7: The Global Food Economy. Posted 1/7/2013.
and Lies of the Bailout. Posted 1/4/2013. It was all a lie
one of the biggest and most elaborate falsehoods ever sold to the
American people...The public has been lied to so shamelessly and so
often in the course of the past four years that the failure to tell
the truth to the general populace has become a kind of baked-in, official
feature of the financial rescue.
Magic Of Compounding" - The Impact Of 1% Change In Rates On Total
2022 US Debt. Posted 1/6/2013. Expects a $34.1 trillion
debt in 2022 with a 3% blended cash interest for the duration. If
it jumped to the long term historical average of 5%, it would push
the 2022 debt to $40 trillion, or approximately 217% of GDP which
is just shy of where Japan is now. The U.S. debt is on track to double
from $16 trillion to $32 trillion in either 9 years (at 3% interest)
or 7 years (at 5% interest).
QE Will Never End. Posted 1/6/2013. Again, for fiscal 2011, the
interest on the U.S. national debt was $454B. This is at an average
coupon of around 3% and an average maturity of under 5 years. So,
with a funding cost of 3%, the interest on the national debt was roughly
1/3 of the 2012 deficit. Aha, but what would the funding cost be if
rates were 6% instead? The interest on the debt would have been $900B
and the total deficit would have approached $2T! And this is
why QE-Infinity exists and why it will never end. QE
will not be ending in 2013. It will not be ending in 2014 and it will
not be ending in 2015. It can't and it won't. The only option for
the Fed and TPTB is to "extend and pretend". Extend the
Great Ponzi as long as possible by pretending that there is adequate
demand for treasuries to keep rates low.
- Americans, Paradoxically, Do Trust The Big Banks. Posted 1/3/2013.
The truth is, that as of December 18, there was a record $9.2 trillion
in total bank deposits: this is not only the evil 1%-ers money, but
money from mom and pops - the public - who have saved cash all their
lives, the bulk of it from hard work, and instead of keeping it in
cash have decided to hand it over to the banks for "safe keeping."
In other words, so explicit is the trust in banks and stability of
the Fed-backstopped banking system that a whopping $2 trillion in
excess deposits over loans have been parked at US banks.
Which brings us to the jist of the story: on one hand, the public
may be disenchanted with the US banking system, but on the other,
the explicit trust has never been greater. And therein lies the rub:
should this trust evaporate, and should deposits be pulled for whatever
reason, not only will banks be forced to unwind a myriad in risk positions
they likely still have on, but the sudden increase of what even the
Fed would have to admit is M1 would result in an explosion in the
prices of goods and services as suddenly three dollars are chasing
what previously there was only one dollar in demand for.
201. Posted 1/3/2013. Mathematically the Treasury is broke. They
can never tax enough or cut spending enough to actually pay back lenders
with current Dollars. The Treasury has simply borrowed and guaranteed
too much to ever be repaid in current Dollars. The ONLY way to make
payment is to print more which is another way of saying that the only
way to make payment is to BORROW more.
discarded as impoverished Greeks resort to bartering. Posted 1/2/2013.
Communities set up local currencies and exchange networks in attempt
to beat the economic crisis. Also see Gold
& Underground Economy. As Rome debased its currency, a two-tier
economy emerged. Not even the government would accept its own money
back for taxes. They imposed taxes in bullion terms so the coinage
had to be melted down to pay your taxes. Taxes were also imposed in
kind whereby they just came and took possessions.
Gross On Bernanke's Latest Helicopter Flyover, "Money For Nothing,
Debt For Free" And The End Of Ponzi Schemes. Posted 1/3/2013.
When the Fed buys $1 trillion worth of Treasuries and mortgages annually,
as it is now doing, it effectively is financing 80% of the deficit
& The Frightening Picture Of Our Financial Abyss. Posted 1/3/2013.
Compares the Adjusted Monetary Base (from Federal Reserve Bank of
St. Louis) to the price of Gold since 1984. Shows the undervaluation
of gold relative to the monetary base. It is clear that gold is nowhere
near the overvaluation of the 1980s.
The Battle of Athens: Restoring the Rule of Law. Posted 1/1/2013.