Friday, November 21, 2014

Gold Repatriation Stunner: Dutch Central Bank Secretly Withdrew 122 Tons Of Gold From The New York Fed

"A week ago, we penned "The Real Reason Why Germany Halted Its Gold Repatriation From The NY Fed", in which we got, for the first time ever, an admission by an official source, namely the bank that knows everything that takes place in Germany - Deutsche Bank - what the real reason was for Germany's gold repatriation halt after obtaining a meager 5 tons from the NY Fed:

... the gold community paid great attention to the decision of the German Bundesbank to “bring German gold home”. At the beginning of 2013, the Bundesbank announced it would repatriate 300 tonnes of gold stored in the US by 2020. It is well behind schedule, citing logistical difficulties. Yet diplomatic difficulties are more likely to be the chief cause of the delay, especially seeing as the Bundesbank has proven its capacity to organise large-scale gold transports. In the early 2000s, the Bundesbank incrementally repatriated 930 tonnes of German gold held by the Bank of England.
Some took offense with this, pointing out, accurately, that the gold held at the NY Fed in deposit form for foreign institutions had continued to decline into 2014 despite the alleged German halt. Well, today we know the answer: it wasn't Germany who was secretly withdrawing gold from the NYFed contrary to what it had publicly disclosed.

It was the Netherlands.

This is the stunning statement made by the Dutch Central Bank earlier today, and which, all compliments to China's rate cut, is truly the biggest news of the day, as it shows that one doesn't need a referendum to repatriate their gold, nor does one run into logistic or diplomatic problems if one is truly set on procuring their physical.

As to why the DNB decided it was time to cut its gold held at the NY Fed by 122 tons? ""It is no longer wise to keep half of our gold in one part of the world," a DNB spokesman told Telegraaf. "Maybe it was desirable during the Cold War, but not now."

From the source:..."


Why Banks Should Not Be Allowed To Manipulate Metals Markets In 4 Simple Points

"Four negative effects of allowing FHCs to engage in Complementary Commodity Activities stand out in particular (and for further detail, please see
1) FHCs have been permitted to own an outsize share of official LME metals warehousing. With such warehouse market power, they can exercise manipulative control over aluminum prices and stifle competition. Anyone who buys metal on the LME and wishes to take possession of it is forced to do so through an LME warehouse. Warehouse owners with such outsize market power have driven up wait times for these buyers to hundreds of days, and have increased rents on their metal during the wait. This behavior constricts supply and drives up the costs of getting metal out of the LME system. In turn, this creates a distortive force on the broader market for metal—thereby driving up industrial costs, which are passed down to consumers in the form of higher prices. The LME system—a so-called market of last resort—should be a force for keeping industrial premiums down, but it has ceased to function in this role.
Additionally, with the profits from higher rents flowing from longer queues, FHCs can incentivize producers to sell more aluminum into their warehouses, and thereby compete with industry and bid up the price of metal—again, driving up aluminum prices. As J. Christopher Giancarlo said in a confirmation hearing before the United States Senate Committee on Agriculture, Nutrition, and Forestry, "Absolute dominance can lead to absolute abuses." Sharon Bowen, at the same hearing, echoed these sentiments: "Any time you can control both the demand and supply of a commodity, that. . . needs to be looked at, because it could be recipe for manipulation,"
2) Allowing FHCs to own metal, trade derivatives, and own the LME warehouses in which metal is stored gives FHCs the ability to gain insider information about the future moves of metal in and out of the market, and then trade on such information. The rest of us, who don't own warehouses, cannot do the same. Insider trading in equities markets is illegal. Those laws are designed to prevent individuals from profiting from non-public information. But no such laws exist in commodities markets, thereby misaligning incentives, and, most importantly, eroding public trust in commodities markets. If a CEO can't sell his company's shares because he knows the company is about to report small profits, why can a trader sell metals futures right before he knows his company is about to dump large amounts of metal on the market?
3) Allowing FHCs to own metal, trade derivatives, and control warehouses allows FHCs to profit by quickly moving large amounts of metal in and out of the LME market system. When large quantities of metal leave or enter the system, the broader market perceives shifts in supply and demand. A FHC with outsize stocks of metal could take advantage of such a scenario by buying futures, moving a large quantity of metal off LME warrant (signaling a greater demand and reduced supply, causing prices to rise), and then selling the futures at a higher price. But the metal may have never left the warehouse at all. There is, in reality, no industrial demand for the metal, but its price has gone up.
4) And all of this behavior is financed by the American taxpayer. Owning and trading in physical metal requires significant upfront capital, which is typically borrowed. Because FHCs have access to the discount window, and benefit from an implied "too big to fail" loan guarantee, they have a government subsidized advantage over industrial buyers and smaller traders who must pay higher financing fees. Quite ironically then, it is the American taxpayer who is subsidizing FHC activity that causes higher prices on the everyday goods purchased by those same taxpayers..."


Low Oil Prices An artificial play by the Saudis & The Americans

"The U.S. together with Saudi Arabia just want to put pressure on Russia and Venezuela. It’s an artificial play by the Saudis, with the support of the Americans to punish some; especially Russia and Iran. Maybe by following this strategy, they can get them to do what the U.S. says."
"I am buying in Russia right now. Some of these markets had been under pressure but I am buying stocks. I am optimistic about Russia." Jim Rogers told The Anadolu Agency,.."


Worldwide War For Physical - Andy Hoffman


Swiss Gold Initiative Leader Banned From Televised Debate

"Today King World News was stunned to learn that the Swiss politician who launched the Swiss Gold Initiative was actually banned from participating in the televised debate.  Luzi Stamm, who was one of the primary architects of the Swiss Gold Initiative, spoke with KWN about why he was banned from the televised debate and why “It is not possible (to continue) what’s (currently) going on in the Western world.”  Below is his remarkable interview..."


China & Russia To Accuse U.S. Of Not Having The Gold

"Today King World News interviewed a man who has been uncovering critical information for 25 years who said that in the not-too-distant future China and Russia are going to publicly announce to the world that they don’t believe the United States has the 8,100 tons of gold it claims to possess.  He also spoke about German gold repatriation, the Swiss Gold Initiative, and massive unofficial gold holdings in China that are held outside of the central bank.  Below Steve Quayle takes KWN readers around the world on a shocking trip down the rabbit hole of lies, propaganda, criminal international banking syndicates and murder..."


Russian Gold Reserves Continue to Expand

"Russia added another 600,000 oz to its reserves in October.

Nothing to see here.  Move along.

Dutch Quietly Repatriate 120 Tonnes of Gold From New York

"It looks like the Dutch brought back 120 tonnes of their gold from New York while no one was looking.

From the Ukraine, with love?  Perhaps they contributed their 30 tonnes which was last seen headed West on a night flight in April.

Meanwhile Germany obediently waits, for years, and the Swiss dither.

The Wall Street Banks thank you for your patience.   Have a nice day.

Dutch bring 120 tonnes of gold back to Amsterdam from New YorkNovember 21, 2014

The Dutch central bank has secretly brought a large part of the national gold reserves being held in a secure depot in New York back to Amsterdam. In total, 120 tonnes of gold valued at €4bn has been brought back to the Netherlands by ship, Nos television said.

The high security reparations for the move took months. The central bank decided to bring some of its gold reserves back to the Netherlands to ensure a better spread, the bank said in a statement. In addition, the bank hopes to boost consumer confidence by showing there is enough gold in the Netherlands to take the country through a new economic crisis.

Now 31% of the Dutch gold reserves are in Amsterdam, the same percentage as in New York. The rest is in Ottowa and London. The Netherlands has 612 tonnes of gold – worth €19bn at current gold prices, Nos said."


Senator Levin: Fed Enabled Banks To Elbow Way Into Commodities, Manipulate Prices

"Apparently Senator Levin is not expecting many $250,000 speaking engagements from Wall Street after he leaves the Senate.

The Wall Street Banks have NO business using their subsidized banking funds and deposits to speculate in global markets for their own accounts.

This was the basic safeguard provided by Glass-Steagall for almost sixty years that was overturned in a bipartisan political effort at gettin' paid.

US Senator Carl Levin Opening Statement, Day Two

"The Federal Reserve is considering arguments that Wall Street banks provide hard-to-replace services in these areas. But the separation between banking and commerce has served markets and our economy quite well for decades. And the erosion of that barrier is clearly doing harm today.

Any discussion of these physical commodities activities must begin and end with the need to protect our economy from risk, our markets from abuse and our consumers from the effects of both.

Wall Street banks with near-zero borrowing costs, thanks to easy access to Fed-provided capital, have used that advantage to elbow their way into commodities markets.

Bad enough that this competitive advantage hurts traditional commercial businesses; worse that it opens the door to price and market manipulation and abusive trading based on nonpublic information."

Read the entire statement here..."


Thursday, November 20, 2014

Senate Report Reveals Powerful Manipulative Positions of Goldman, JPM In Global Commodities

"Senate Report Criticizes Goldman and JPMorgan Over Their Roles in Commodities Market
By Nathaniel Popper and Peter Eavis
November 19, 2014

A two-year Senate-led investigation is throwing back the curtain on the outsize and sometimes hidden sway that Wall Street banks have gained over the markets for essential commodities like oil, aluminum and coal.

The Senate’s Permanent Subcommittee on Investigations found that Goldman Sachs and JPMorgan Chase assumed a role of such significance in the commodities markets that it became possible for the banks to influence the prices that consumers pay while also securing inside information about the markets that could be used by the banks’ own traders

Bankers from both firms, along with other industry executives and regulators, will testify about the allegations at hearings on Thursday and Friday.

The 400-page report, which was made public on Wednesday evening, included case studies on nine different commodities in which banks have taken big positions, including the 100 oil tankers and 55 million barrels of oil storage that were owned by Morgan Stanley, and the 31 power plants owned by JPMorgan at one point.

The subcommittee discussed several reasons that these commodity operations could create problems. The potential for price manipulation and the unfair advantage that banks can gain in these markets were among the top concerns expressed by Senator Levin and Senator John McCain, the top Republican on the subcommittee.

But both senators also echoed previous warnings that the enormous holdings of oil, uranium and other hazardous materials could expose the banks to significant legal liability that could, in turn, lead to runs on the banks.

A 2012 study by the Federal Reserve, cited in the report, found that banks have not put aside enough money and insurance to adequately prepare for the “extreme loss scenarios” involving commodities...

Read the entire article here."


Can You Help the Fed Figure Out What Is Wrong With The Recovery™

"Why doesn't the public spend and save more?


Inflation Chronicles, Part 1: Art Prices So High, “The Crowd Forgot To Clap”

"Depending on which expert is talking, the world is either falling into a deflationary abyss or launching an inflationary moonshot. What’s truly weird and fascinating is that they’re both right. The mountain of debt taken on in the past few decades exerts a profoundly deflationary pull on the economies of Europe and Japan, and to a lesser extent the US. At the same time the torrent of currency flowing out of the world’s central banks is swelling the accounts of the super-rich who are converting it into real assets as fast as they can, causing near-hyperinflation in some favored markets. Hence the spectacle of Paul Krugman (and most Fed governors) complaining about low inflation and warning of a deflationary death spiral, while things like this are happening:..."


Man Who Made Legendary Call In Silver Exposes BIS & Gold

"...I think a lot of the recent volatility is surrounding the upcoming Swiss referendum.  If I was the Swiss National Bank or the Western central planners and I wanted to create some uncertainty in the minds of the Swiss voters, volatility in the gold market would certainly aid in that cause.  

I think the political system and the corporates have no interest in a stronger Swiss franc, which is what would be invoked if the referendum were to pass.  Should that referendum be ratified, the artificial Euro-Swiss peg would come under such enormous pressure that it would break.  This would be as a result of the 20 percent gold backing of the Swiss franc.

So if central planners want to create some instability in the minds of people, what better way than to push down the price of the Comex gold futures.  Then they can essentially say to the Swiss people, ‘Do you really want to be holding an asset that can drop 5 or 10 percent over a one-month period?  No, I didn’t think so.’

I think what is actually happening is that the BIS (Bank for International Settlements) has set up a swap arrangement so that should the actual day come where there was a ‘Yes’ outcome, the Swiss will already have a significant amount of metal that they can take in.  This is part of the reason why lease rates have gone negative.

So in some ways it’s not surprising that the market was pushed lower.  But gold immediately found some serious demand out of the usual suspects in Asia, primarily India and China.  And so the market quickly rebounded back up near the $1,200 area.  So it’s been difficult for them to hold the market down, and obviously with the lease rates going negative, that’s put a bid into the market.

But should a ‘No’ vote result, it’s quite possible that we will get another chance to buy this market at lower prices.  However, as I said, the sentiment is so awful and everyone keeps projecting lower and lower prices, so this is not the time to get cute.  Investors need to be completely accumulating if not all, at least 50 percent of any holdings in gold that you want to acquire.  As I said at the start, it’s the only asset class in the world where the risk of a 10 percent loss is probably all you can see, and at the same time the upside is staggering.” KWN will have a more in depth interview on the gold and silver markets with Ben Davies this Friday."


Rick Rule - War Is Hell, Especially In The Gold & Silver Markets

"Today one of the wealthiest people in the financial world spoke with King World News about the ongoing war in the gold and silver markets as well as what to expect in the future.  Rick Rule, who is business partners with Eric Sprott, also discussed the remarkable gains that lie ahead for investors in gold, silver, and the mining shares.

“Eric King:  “Rick, we’ve recently seen historic extremes on the downside in gold, silver, and the shares.  Did we get the capitulation you were looking for?”

Rule:  “Well, we were on the verge but we didn’t quite tip over the edge, unfortunately.  I say ‘unfortunately’ because when you are going through these capitulations they are certainly terrifying events, but they set the stage for a dramatic recovery....

“There are people who argue that we hit the capitulation phase with regards to the junior mining shares but I don’t believe it to be so.  And the reason it did not happen with the metals themselves is because demand for gold and silver is still incredibly strong.

The same thing appears to have happened with regard to the paper trend in gold that has happened the last three breaks in price, which is that incredible physical buying has come in to both the gold and silver markets.  I am not just talking about Chinese buying -- I’m talking about the length and breadth of retail buying in places like the United States.

Of course there was official-sector physical buying as well and a lot of that is from the Russians.  But what we are witnessing is a continuation of the war that we’ve talked about on your show for the last 18 months between the physical market and the futures market.  For 10 years, since the start of the GDX, the gold price has been dominated by the paper futures market.

But the physical market has acted over the last three years to break the most precipitous of the declines in the paper futures market.  That’s exactly what has happened again.  If you talk to dealers from the local coin shops all the way up to the U.S. Mint, the sheer volume of the physical gold and silver buying for the last five or six weeks during this decline has been spectacular.  So we have seen anything but capitulation in terms of physical buying of gold and silver as the savvy individuals are soaking up all they can at these massively discounted prices.”


Wednesday, November 19, 2014

Insider Exposes Shocking Truth On German Gold Repatriation

"Today the original architect of Germany’s gold repatriation movement stunned King World News with the truth about what is really happening with the effort to get Germany’s gold back onto German soil.  What he had to say will surprise readers around the world.

Eric King:  “Peter, you were one of the primary architects of this movement in Germany to repatriate Germany’s gold.”

Boehringer:  “Yes, that’s correct.  I’m the main initiator, but I did it together with the European Taxpayers Association (E.T.A.) President, Baron von Hohenhau.  The E.T.A. has over 100,000 members in Europe.  My German precious metals association has quite a few members as well, and we teamed up together in 2011 and started the German repatriation campaign.

It has been a long time since the German gold has been on German soil.  By 1990, after the fall of the Soviet Union, some people in Germany began to complain about foreign countries holding German gold and these people began to ask, ‘Why is our gold not on German soil?  Why does our gold have to be in London, Paris, and especially New York (at the Federal Reserve)?’

But it was difficult because the German Bundesbank didn’t release any information or requests for information for many, many years.  But the movement in Germany to repatriate the gold gained momentum and more people, including members of the German Parliament, began to ask, ‘Why can’t we have our gold in Germany?’  They began to question the Bundesbank themselves and the movement gained even more momentum....

“But at the time the Bundesbank remained pretty arrogant and refused to disclose anything.  When our movement began to form in 2011, we sent the Bundesbank a communication and we were able to obtain a little more information because the European Taxpayers Association couldn’t be completely ignored.  However, no one was satisfied with the Bundesbank reply.

Then we started the public campaign and all of a sudden things began to change with regards to the Bundesbank because they were now under public pressure.  So it was in 2012 that we began to get a little more information about where our gold was allegedly located.  We were concerned when we found out that the U.S. Fed was supposedly holding close to 1,500 tonnes of our gold in New York.  We also learned there were 350 tonnes in Paris and some 700 tonnes located in London.

We also found out that after the complaints began to surface in 1990, some 1,000 tonnes of gold had supposedly been repatriated from London by 2001 and 2002.  Nobody knew anything about this until our movement forced this information to be released publicly.  The problem is that nobody can prove this because the Bundesbank refuses to release any detailed list of the bars along with serial numbers.  This is something that we are complaining about.

The problem in Germany is that there are no proper audits of our gold.  No one is allowed access to the German gold vaults to prove that the gold is in fact there.  It’s the same all over the world with all Western central banks -- they will not release detailed information about the whereabouts of their gold.  I know this has been discussed at great length in the United States, but up to now the Fed has stonewalled any attempt to audit U.S. gold reserves..."


Wednesday, November 12, 2014

If Everything Is Just Fine, Why Are So Many Really Smart People Forecasting Economic Disaster?

"The parallels between the false prosperity of 2007 and the false prosperity of 2014 are rather striking.  If we go back and look at the numbers in the fall of 2007, we find that the Dow set an all-time high in October, margin debt on Wall Street had spiked to record levels, the unemployment rate was below 5 percent and Americans were getting ready to spend a record amount of money that Christmas season.  But then the very next year the worst economic crisis since the Great Depression shook the entire planet and everyone wondered why most people never saw it coming.  Well, now a similar pattern is unfolding right before our eyes.  The Dow and the S&P 500 both hit record highs on Monday, margin debt on Wall Street is hovering near record levels, the unemployment rate has ticked down a little bit and Americans are getting ready to spend more than 600 billion dollars this Christmas season.  The truth is that the economy seems pretty stable for the moment, and most people cannot even imagine that an economic collapse is coming.  So why are so many really smart people forecasting economic disaster in the near future?
For example, just consider what the Jerome Levy Forecasting Center is saying.  This is an organization with a tremendous economic forecasting record that goes all the way back to the Great Depression.  In fact, it predicted ahead of time the financial trouble and the recession that would happen in 2008.  Well, now this company is forecasting that there is a 65 percent chance that there will be a global recession by the end of next year...
In 1929, a businessman and economist by the name of Jerome Levy didn’t like what he saw in his analysis of corporate profits. He sold his stocks before the October crash.
Almost eight decades later, the consultancy company that bears his name declared “the next recession will be caused by the deflating housing bubble.” By February 2007, it predicted problems in the subprime-mortgage market would spread “to virtually all financial markets.” In October 2007, it saw imminent recession -- the slump began two months later.
The Jerome Levy Forecasting Center, based in Mount Kisco, New York, and run by Jerome’s grandson David, is again more worried than its peers. Its half-dozen analysts attach a 65 percent probability of a worldwide recession forcing a contraction in the U.S. by the end of next year.


Did Gold and Silver Just Get Their “Greenspan Put”?

"The world’s central banks and derivatives traders have been having their usual fun with gold and silver lately, dumping huge volumes of futures contracts into thin markets to produce massive declines — just when precious metals SHOULD have been soaring in response to near-global debt monetization.
But something interesting happened as this latest smack-down really got going. Physical buyers — who goldbugs have for years been expecting to ride to the rescue, finally did. Chinese and Indian gold imports, which had trailed off earlier in the year, soared in response to the recent price declines. There’s some debate about exactly how much these guys are buying, but it certainly looks like they’re talking all that’s being produced by the world’s mines, and then some.
Here’s a chart from gold analyst Koos Jansen showing Chinese imports spiking lately:
Chinese gold imports 2014
In silver, the response of individual coin buyers has been even more dramatic. The US Mint, which in a good month sells 5 million one-ounce silver eagles, sold 2 million of them in two hours on November 5, ran out of inventory, and suspended sales until further notice.
For more on the recent tsunami of precious metals buying, see:
So it looks like physical buyers at long last have decided to tell the precious metals market what the US government and Federal Reserve have been telling the stock, bond and real estate markets markets since the 1990s heyday of Fed chair Alan Greenspan: Relax, we’ve got your back. We’ll short-circuit small declines before they can turn into big ones, and failing that we’ll ramp up a new bubble so quickly that you’ll hardly notice the blip.
There is of course no way to know what the manipulators will do in response, and whether they’ll succeed. They do, after all, have trillions of dollars of fiat currency at their disposal. But at least there’s now a real fight going on in which physical buyers are landing some punches."


Jim Rogers 2015 Prediction US Debt Is Much Bigger Than Declared!

"Katie Pilbeam talks about the worrying new estimations on US debt figures with Jim Rogers, a legendary investor author of Street Smarts: Adventures on the Road and in the Markets. As Europe bears the burden of austerity, million-euro salaries continue to be dished out to bankers. Executive Director of DV Advisors Patrick Young tells us if such pay is justified. Can the price of fertiliser affect football? We look at whether that's the case with the Russian football club Anzhi. Plus corporate news and market action in Russian stocks."


Monday, November 10, 2014

A Tiny Firm That Saw The 1929 Crash Coming Sees Trouble For 2015

"A small firm that predicted the market crash back in 1929 is back with an ominous message.
According to Bloomberg, the Jerome Levy Forecasting Center sees a 65% chance of a recession in 2015.
"Clearly the direction of most of the recent global economic news suggest movement toward a 2015 downturn," said David Levy, the chairman of the Jerome Levy Forecasting Center.
Levy's forecasts contrasts with the consensus of Wall Street, which is confident that growth will continue for years.
Back in 1929, Jerome Levy — grandfather of the current chairman — "didn't like what he saw in his analysis of corporate profits" and rather impressively "sold his stocks before the October crash," reports Bloomberg.
More recently, the group warned that the housing bubble and proliferation of subprime debt would be responsible for the last downturn.
This time around, David Levy is worried about 2015 because the US is significantly involvement overseas, where growth is slowing. Furthermore, he is concerned that an unusually high proportion of disposable income is exposed to the stock market.
To read the full Bloomberg article, click here."

Reader Question on Greenspan and Gold: "No Fiat Currency Can Match It"

"Reader Stephen is wondering about Greenspan's Stunning Admission: "Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It"


John Williams' Take On The October Unemployment Report: "The Economy Remains In Terrible Shape"

"When it comes to inflation data, there are two parallel sources: the BLS, and ShadowStats' John Williams, who continues to plough through the underlying "data" using pre-pre-pre-revision protocols, and every month reveals a parallel universe in which something shocking is revealed: the truth. Here is his take on the October "weaker but really stronger than expected" jobs numbers. Here is what really happened.
Never Recovered, the Economy Remains in Terrible Shape.  The large number of opening headlines in today’s (November 9th) missive reflects various stories, ranging from twisted unemployment data, to an election dominated by underlying economic reality, and to headline 2014 financial results on the federal government’s operations that should raise some troubling questions in the markets.  The general outlook is unchanged
Twisted Unemployment Numbers.  Headline October 2014 unemployment reporting, in particular, was skewed heavily by warped seasonal-adjustment factors that do account properly for last year’s government shutdown.  When the U.S. government closed in October 2013, the shutdown encompassed the Bureau of Labor Statistics (BLS) base-period for determining the unemployment and employment detail in the household survey, as well as for determining employment in the payroll survey.  The BLS was unable to determine fully the impact of the government shutdown on the monthly October labor data..."


China/India Gold Demand: 2013 Déja Vu

"In 2013; a chain of events led to what was (at the time) the greatest stampede into gold in human history. It began with the Cyprus Steal, the West’s first “bail-in”. This led to the realization (by the Smart Money) that no paper assets were safe any longer, within any Western financial institution or market.

In turn, this led to an unprecedented stampede out of the banksters’ paper-called-gold “products”, primarily their ultra-fraudulent bullion-ETF’s. With the paper-called-gold market being 100 times larger than the real (physical) gold market; this naturally caused a plunge in the official price of gold.

It was at this point that the stampede into (physical) gold began. Some of this demand was from the West: sellers of these vast quantities of paper-called-gold suddenly saw the wisdom in holding real bullion: having physical custody of their asset, and thus zero counterparty risk..."


Jim Rogers: By the end of this decade US dollar will lose world dominance

"The dollar will lose its dominant role - that message from President Putin as Russia and China agree to boost trade operations in their national currencies. This comes on the heels of a major gas deal, called the Western route....which coupled with a previous pipeline agreement will make Beijing Russia's largest consumer. RT is joined by Jim Rogers, author and financial commentator..."


Russell - Friday’s Gold Action Is Big Money Anticipating QE4

"Russell’s quick note on gold:  “In recent months, gold has sold off on Fridays. But I thought the counter-activity today was important; gold was up sharply. I check 14 gold items each day and I note that all gold items were higher. I think big money sees QE4 ahead and is protecting itself.”  King World News note:  On Thursday the number of silver bulls plunged to an all-time low, an astonishing 26 percent below what was seen at the bottom of the 2008 collapse, and 8 percent below the previous record low set at the end of 2013.  This is an incredibly important contrarian indicator and extremely bullish for the price of silver going forward."


John Embry On The Ongoing War In The Gold & Silver Markets

"Today a man who has been involved in the financial markets for 50 years spoke with King World News about the ongoing war in the gold and silver markets.  Below is what John Embry, who is business partners with billionaire Eric Sprott, had to say.

Embry:  “I am focused on the short-term price action in the gold and silver markets, most particularly this morning.  I think the most predictable event going into this week was that the central bank driven anti-gold cartel was going to make sure that there was no follow through on the notable strength that gold and silver demonstrated on Friday....

“The fact that both are extremely oversold and ridiculously undervalued doesn’t enter into the equation when these guys go to work.  Physical gold and silver, which represent the only real money out there with no counterparty risk, are now such a threat to our rapidly crumbling global fiat currency system that the central banks are going to ever greater lengths to hoodwink the public and keep them away from the two assets.

This is because of the simple reason that these are the only two assets that are going to offer protection when this whole massive Ponzi scheme in currencies, debt instruments, and other financial assets implodes.  But I think people have got to understand what’s going on here and realize how inexpensive gold and silver are.  Instead of people selling their gold and silver they should be buying it hand-over-fist and getting out of these overpriced bonds, stocks, etc..

Over the weekend John Hussman said he believes the stock market is overvalued by at least 50 percent.  I have an enormous respect for Hussman’s work and he is basically saying the stock market would have to fall in half in order to represent real long-term value.  To me this is part of the massive mispricing in virtually all financial assets.  But if the stock market is overpriced, the bond market is preposterously overpriced.

At the same time, real assets such as gold, silver, and oil, have been driven down to levels that are preposterously low.  And the price action is driving a lot of people out of the markets and making them do the wrong thing.  This situation is incredibly dangerous in terms of the long-term health of our financial system and people have to understand what’s going on and hold on to their positions in physical gold and silver.”


The Hocus-Pocus of CPI Calculation

"By Joseph Salerno
Zero Hedge explains the scam that is Hedonic Quality Adjustments wherein the Bureau of Labor Statistics manipulates price data so that  large increases in the actual prices of certain products can be transformed into decreasing prices when calculating the Consumer Price Index..."

Wednesday, November 5, 2014

A crisis is coming and it is is going to be a nightmare

"Futures Magazine:  What else could the Fed have done?

Jim Rogers:  [They could have done] exactly what the Scandinavians did. In the early 1920s the Federal Reserve raised interest rates. Washington balanced the budget. We had a horrible year or two but then we had the greatest economic decade in American history in the1920s. It ended badly because of excesses. You bite the bullet, you take the pain. The way the system is supposed to work is people get into trouble, they make mistakes, somebody comes along, reorganizes, and they start over from a stronger base. What the West has done is we have gone in and taken the assets away from the competent people, given them to the incompetent people and said to the incompetent people, “now you compete with the competent people with their money.” It is absurd economics, it is absurd morality. It’s insane. Central bankers will tell you it is great. They say don’t worry we are going to withdraw from this slowly and gradually. In 2008 when they were contemplating this, [FOMC] minutes showed that they didn’t know what they were doing but they didn’t know any other choice. …You asked how it is going to end, it is going to end badly..."