World Changing Events & The Global Run On Gold And Silver

"On the heels of continued volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, discusses the global run on gold and silver that we are seeing and what KWN readers must know about the incredible action that is now taking place in these key markets.

Below is Fitzwilson’s exclusive piece for KWN:

Fitzwilson:  “We could see some real fireworks in the markets in the next few weeks.  This past week saw a run on bullion, particularly silver.  We also found out that inventories of gold and silver are dropping precipitously at the well-known bullion repositories, particularly Western central banks and commodity exchanges. 

Refiners are severely backlogged, inventories of popular products have been depleted, and premiums on available items have gone up significantly.  Panic buying swept the globe since the coordinated takedown of paper prices for precious metals.  It feels as if we are very close to some sort of resolution with the potential for world changing events.  There is no question that a form of a bank run on gold is occurring all over the world..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/30_World_Changing_Events_%26_The_Global_Run_On_Gold_And_Silver.html

 

 

 

 

Pento - US Debt Surges A stunning $7 Trillion In Just 6 Years

"Today one of the top economists in the world sent King World News an exclusive piece covering the tragic reality of what is really taking place with the US economy, and mounting debt.  Michael Pento, who heads Pento Portfolio Strategies, also spoke about what investors can do to protect themselves.  Below is his tremendous piece.

“The government will make a significant change in the gross investment number, which will now include research and development spending, art, music, film and book royalties, and other forms of entertainment as the equivalent of tangible goods production.  The U.S. will be the first nation on earth to pull off this magical GDP trick. 

 

But the shenanigans played by government may fool some people into thinking that growth in the U.S. is gaining strength.  It may even convince some investors that the debt and deficit to GDP ratio is falling.  In addition, it may cause politicians to claim that government spending as a share of the economy is shrinking, so it’s OK to ramp up the largess...." 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/29_Pento_-_US_Debt_Surges_A_stunning_$7_Trillion_In_Just_6_Years.html

Stunning Gold Shortages As Western Ponzi Scheme Collapsing

"Today Egon von Greyerz told King World News that we are now seeing stunning shortages of physical gold, and this is in the face of Swiss refiners increasing production.  Greyerz stated that Swiss refiners are working 24 hours a day, 7 days a week, but simply can’t keep up with the massive surge in global demand.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview..."

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/26_Stunning_Gold_Shortages_As_Western_Ponzi_Scheme_Collapsing.html

Mints, Refineries, Brokerages Out Of Stock - COMEX Gold Inventories Plummet

"Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.

Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms.

Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.

The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.

The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.

Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.

The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.

The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).

Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.

The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980..."

at http://www.zerohedge.com/contributed/2013-04-26/mints-refineries-brokerages-out-stock-comex-gold-inventories-plummet

Sprott - Historic Panic Bottom Ushers In New Gold Bull Market

"Eric King:  “We had this unbelievable smash in gold, in silver.  We’ve come off the lows here, but your thoughts on that whole experience and what people had to endure here.”

Sprott:  “In my mind it was quite bizarre.  I put it down to one of two things:  Either central bank manipulation, which I would fully understand why they would do it, or some technical technical breakdown in the derivatives market which might have caused it.

I would prefer that it’s central bank manipulation because I know that it’s not going to work.  But the fact is that I think we’ve had a historic panic bottom here...."

 

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/26_Sprott_-_Historic_Panic_Bottom_Ushers_In_New_Gold_Bull_Market.html

The Rise Of China In 16 Charts

"China's rise to global prominence is one of the most compelling narratives of our time.  In the last 30 years we have seen the greatest sustained reduction in poverty in human history.  Hundreds of millions of Chinese have moved from an impoverished rural existence to a increasingly prosperous and ambitious urban middle class.

There are lots of interesting sub-stories around China's rise.  Why was China so poor for so long?  What catalyzed its dramatic rise out of poverty?  Where is China today?  How does China's economy affect the rest of the world?  And what does the future hold?
Recently I pulled a number of datasets from Quandl's rich collection of China statistics to create simple, data-centric overview of China's dramatic growth and its ongoing challenges. This slideshow is the result..."

at  http://blog.quandl.com/2013/04/23/a-history-of-china-in-16-graphs/#ixzz2RPGbGPkI

The Daily Gross: Bubbles Getting More Bubbly

"Since reams of Powerpoint presentations, or pages of PDFs seem to pass most 'investors' by these days, PIMCO's Bill Gross' new chosen media appears to be Twitter's 140 characters. He is on a roll of soundbite superbness. Today's headline suggests just four little words we should all be aware of: "Bubbles are getting Bubbly."

at http://www.zerohedge.com/news/2013-04-24/daily-gross-bubbles-getting-more-bubbly

"Panic" For Physical Gold Spreads To UK Where Royal Mint Sales Of Gold Coins Triple

"Following the entire "developing" world (where faith in paper money "backed" by $1 quadrillion in derivatives is at times questioned, and instead the people, for some inexplicable reason, fall back to hard currency equivalents) scrambling out to their local precious metal dealers to find "out of gold" signs virtually everywhere, yesterday it was the US Mint's turn to announce it had halted shipments of the popular one-tenth ounce gold American Eagle coin as it had run out, following a surge in demand (we expect this shortage will soon spread widely to traditional one-ounce denominations shortly).

Things in the US have gotten so bad, not only are most online dealers backlogged weeks and months in advance for most PMs (as the CEO of Texas Precious Metals explained in detail), but respected bullion vaults are also now on the verge of running out of inventory. As Reuters described, "Michael Kramer, president of Manfra, Tordella & Brookes (MTB), a major U.S. coin dealer in New York, has been inundated by orders from existing and new wholesale and retail customers. "It's panic. This is one of the busiest times in quite a while. People think gold's at the lows and they want to take advantage."

It was only a matter of time before the last bastion of paper money, London, also succumbed to the soaring demand for physical, and sure enough moments ago Bloomberg reported that the "Britain’s Royal Mint, established in the 13th century, sold more than three times more gold coins this month than a year earlier as prices declined."

Sales are more than 150 percent higher than last month, according to Shane Bissett, director of bullion and commemorative coin at the Royal Mint.

“Since the dip in the price of gold we have seen increased demand for our gold bullion coins from the major coin markets, and this presently shows no sign of abating,” Bissett said by e-mail in response to questions from Bloomberg. “The Royal Mint continues to supply to its customers and is increasing production to accommodate the higher demand.”

Its not only the UK Mint, but a pervasive global "panic" to get as much gold as possible while prices are as low as they are, courtesy of the recent takedown in spot.

Standard Chartered Plc said yesterday its gold shipments to India last week exceeded the previous record by 20 percent and were double the total of the week before.

“The concern is really how long it can last,” said Dan Smith, an analyst at Standard Chartered Plc. “A lot of people surge in on the low prices and then they are likely to back away a bit as prices rally and they’ve restocked.”

Don't worry, Dan: for now the surge is going on, and on, and on, and so on. We will be sure to inform you, however, when physical demand is finally satisfied. Until then, we have several months of backlogged demand to catch up on, and possibly the default of one or two depositories in the meantime.

Finally, for all those confused by the non-linear relationship between paper gold (selling via ETFs and other), and physical gold (buying via retail and corporate channels), here is Bank of America with a quick and dirty summary of how to think about the relationship:..."

at http://www.zerohedge.com/news/2013-04-24/panic-physical-gold-spreads-uk-where-royal-mint-gold-coin-sales-triple

RBA to buy Yuan demoninated Debt

"Now if only the boffins at the RBA would buy some gold whilst it is on sale, but that would be too radical, much better to buy some pretty paper instead.

From smh.com.au

The Reserve Bank has underlined its confidence in the Chinese yuan's future role as a reserve currency for the Asian region, saying it will invest $1.6 billion in Chinese government debt.

As part of a push to deepen financial ties with Australia's biggest trading partner, the central bank will put 5 per cent of its $32.4 billion in net foreign exchange reserves into Chinese sovereign bonds, it said on Wednesday.

After China this month allowed direct trade between the Australian dollar and the yuan, or renminbi (RMB), the move is another attempt to spur on the gradual opening up of China's financial system..."

 at http://ausbullion.blogspot.com/2013/04/rba-to-buy-yuan-demoninated-debt.html

Ronald Stoeferle: “Last Week We Were Really Close To A Default of The 130-to-1 Paper Gold Market”

"Ronald Stoeferle of Erste Bank discusses the recent moves in the gold price with Tekoa Da Silva. Listen to the interview here..."

at http://ausbullion.blogspot.com/2013/04/ronald-stoeferle-last-week-we-were.html

Sinclair - Full-Blown Panic As People Ask “Where Is The Gold?”

"Today legendary trader Jim Sinclair warned King World News about the full-blown panic that has erupted in both the financial world, and the gold market as well, as people ask, “Where is the gold?”  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.

 

Sinclair: “People have to understand what the motivation was for the recent takedown in the gold price.  It was so well organized, strategized, and executed by the gold banks, in unison, even though it has had the unintended consequence of creating a massive and worldwide buying frenzy in the physical gold market.

 

There is a comparison that is obvious today because I was very involved in the $1 billion loan which had to be made at the time that the Hunt’s positions went into default (in 1980).  This was at a time when Bache & Company, and Merrill Lynch were rumored to be at least on the fence, if not entirely insolvent.

 

You have to understand that back in 1980 when gold had risen to $887.50, and silver traded above $51 an ounce, the financial world was in a full-blown panic and many people firmly believed the dollar was going into oblivion.

It was during this time of panic, but after gold peaked, that I received a call from the Federal Reserve asking me to assist in the liquidation of the Hunt position as the criteria of making the $1 billion loan to bail out both Merrill Lynch and Bache.  This is the frightening reality of the kind of fires that were raging behind the scenes in the financial world at that time....

The uniting factor between the events that took place then versus today is supply.  In both situations there was an increase in demand or an expected increase in demand for physical metal.  This is when the Board of Directors of the COMEX Exchange actually bought into the rumors that were swirling around the floor of the COMEX (in 1980).

You see it was widely assumed that the Hunts were about to ask for delivery of gold (and silver).  In truth,  because I know what the Hunt’s position was, they never asked for delivery, but instead religiously rolled their paper contracts on first notice date. 

So with the financial and currency markets on fire, and rumors swirling to and fro on the COMEX trading floor, the Board of the Directors of the COMEX Exchange basically changed the rules of the contract.  They also went to sellers only that were allowed to transact.

So the net effect of the Hunt situation, where there was an expected demand for physical which would have greatly challenged the existing warehouse supply, was to do all of the technical things required in order to bring the market down.  But it was done in such a vicious manner, that it was almost as if you had backed the gold and silver markets into an empty elevator shaft.

This was very similar to what we saw on the two-day paper selling binge that the gold market experienced on that now famous Friday and following Monday.  So the correlation between the Hunt situation and the present situation, both have to do with the key word, ‘supply.’

Now what has recently happened is that the physical market has taken on a life of its own, and the warehouse supplies at the COMEX on gold have come down substantially.  There hasn’t been anyone standing for full delivery or any headline-making demands, but if you take a look at the condition of the gold warehouse at the COMEX, you will see that it has declined substantially.

The expectation that this plunge in inventories might continue is enough to have the gold banks and central planners react in an almost similar manner to the COMEX Board of Directors when they had convinced themselves back in 1980 that the Hunts were about to ask for delivery..."

 

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/24_Sinclair_-_Full-Blown_Panic_As_People_Ask_Where_Is_The_Gold.html

 

News Flash: Economists Clueless

"Economist Robert J. Samuelson just published an unintentionally funny article in Capital Journal on the bemusement today’s economists feel after being wrong about virtually everything for the past decade..."

at http://dollarcollapse.com/the-economy/news-flash-economists-clueless/

Maguire - Gold Deliveries Into China Soar To 1,000 Tons

"On the heels of his appearance in the extraordinary CBC production titled, “The Secret World of Gold,” today whistleblower Andrew Maguire spoke with King World News about the incredible action which continues to take place in both the gold and silver markets.  Maguire also told KWN about the staggering amount of physical gold tonnage that Eastern central banks continue to buy each day in London, in a market that, remarkably, is not seeing any supply.  Below is what Maguire had to say in part I of his remarkable and exclusive interview..."

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/22_Maguire_-_Gold_Deliveries_Into_China_Soar_To_1,000_Tons.html

Maguire - Elaborates On The LBMA Default & Ensuing Panic

"Today whistleblower Andrew Maguire spoke with King World News, providing even more details by elaborating on the events surrounding the LBMA default.  Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also told KWN about the ensuing panic which has taken place in the aftermath of the LBMA default.  Maguire described entities as “panicking.”  Below is what Maguire had to say in part II of his remarkable and exclusive interview.

 

Eric King:  “Inside that piece (“The Secret World of Gold”) you talked about gold leasing and the mechanics of that.  Jim Sinclair wanted me to bring that up to you, the gold leasing, the mechanics of it, can you talk about that?”

Maguire: 

“We did a piece on King World News about it, about the LBMA bullion bank default.  Stepping back, how did they get to such a mismatched (trading) position where they had so little gold and silver in their inventory to be able to back up people coming and asking for their gold and silver?  They never anticipated that this would happen....

“But what had happened was, over the years, basically what you would do is you would sell gold, sell silver, financed almost for nothing, take that money and invest it.  Then, obviously incentive was there because it had built up to such a large (short) position, they were so over-collateralized, that it was important to defend the price (of gold and silver) from rising because they didn’t actually have the physical.

What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it.  I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash.  I felt I should go public with that (on KWN).

...(ABN AMRO) really was the tip of the iceberg.  What happened was that we saw that first bullion bank create the first visible default of the LBMA fractional reserve system.  I hear of other clients who are now panicking, and what happens?  You get an official intervention.  That’s what it (the takedown in gold and silver) was all about.”

Eric King:  “Andrew, you were getting contacted by people all over the world after KWN did the interview with you regarding the LBMA default situation.”

Maguire:  “I must say I had some really distressed emails.  What they were asking is, ‘What should I do?’  All I could say to them is, ‘If I had physical stored in any bullion bank related warehouse, whether it be COMEX or LBMA, I would remove it right now.’

We all know that ‘default’ will not be called a ‘default.’  It will be settled with cash.  I do not believe for a minute that the Fed can’t print a few billion (dollars), whatever it costs, to bail out the bullion banks for cash.  Why wouldn’t they just bail them out with cash?  It’s just an electronic keystroke.  People will be sitting on the sidelines and they will not get any physical (gold).” 

 

Maguire also added:  “It’s been several years since I’ve taken any delivery from the COMEX, or any of my clients have.  But I do remember on those prior occasions it was already difficult to get your physical out. 

 

Arranging to actually have the audacity to back up a Brinks truck to the COMEX warehouse door, it just incurred every defensive tactic you can imagine.  There were unreturned phone calls.  There were questions as to, ‘Why do you want this physical?’

That was a few years ago, so just imagine how many more obstacles there are now.  And obviously we are at the point of a critical default unfolding, so I would think think it’s going to be difficult to get your physical out now."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/22_Maguire_-_Elaborates_On_The_LBMA_Default_%26_Ensuing_Panic.html

 

Sinclair - Swiss Bank Just Refused To Give My Friend His Gold

"Today legendary trader Jim Sinclair stunned King World News when he revealed that a dear friend of his who is very affluent just had a Swiss bank refuse to return his large hoard of gold when he asked for it out of an allocated account.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and candid interview.

 

Eric King:  “Maguire spoke on KWN yesterday about the fact that one of his clients went to the LBMA to get the metal from them and could not get it.  They told him he would be cash settled.  This is what you have been talking about is the failure of the physical markets.”

Sinclair: 

“A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank....

“They told him the amount was in excess of 200,000 Swiss francs and the central bank had instructed them not to do it because it has to do with anti-terrorism and anti-money laundering precautions. 

I really wonder whether those are precautions or whether the gold simply isn’t there.  Now you tell me that a London delivery has basically failed.  It has to raise our suspicions that the lack of physical gold behind the paper gold is literally so severe that we are coming to understand that it is in fact not there.

The gold that people think is stored is not stored, and the inventory of the warehouses for exchanges may not be holding deliverable gold.  There has always been speculation about whether or not the physical gold the US claims to store is in fact in those vaults..."

 

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html

 

Richard Russell - Frightening, Historic & Unprecedented Times

"On the heels of Goldman Sachs telling clients to cover their short positions in gold, today the Godfather of newsletter writers, Richard Russell, writes that we are living through some of the greatest and momentous changes in world economic history.  Russell also discusses the US dollar, bonds, and the key upside breakout price objective for gold.

 

Richard Russell: “Today's investors are in a most unusual position.  I say that because I believe we are close to witnessing and living through some of the greatest and momentous changes in world economic history.  It will be, historically, tantamount to those of us who fought and lived through World War II.

The two biggest items in America's economy are (1) Federal Reserve notes, which we laughingly call "dollars."  These notes currently serve as the world's reserve currency.  (2) The US bond market, by far the single biggest securities system on the planet -- it includes trillions of dollars worth of Treasuries, corporate and municipal bonds, and various other debt securities.

It is my opinion that within the next year or possibly two years, the dollar will lose its reserve currency status, and the US bond market will crash, taking the stock market with it.  I include below a chart of the US dollar -- the chart goes back to 2008.  The chart depicts a series of declining tops.  Declining tops describe a period of ebbing upside momentum - and ebbing upside momentum is always bearish. 

The chart below tells me one thing -- the world is cautiously and steadily moving away from dollars.  We hear about nations agreeing to trade with each other in their own currencies (in order to avoid trading in dollars).  We hear about nations moving dollars out of their reserves.  I'm predicting that these bearish (for the US) trends will accelerate.  These trends are forecasting the end of the US dollar as a wanted store of value..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Richard_Russell_-_Frightening,_Historic_%26_Unprecedented_Times.html

 

Refiners Can’t Keep Up With Massive Global Gold Demand

"Today Egon von Greyerz spoke with King World News about the massive global demand for gold and the incredible strain it is putting on refiners.  Greyerz also talked about retail gold buyers queuing up all over the world.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview.

 

Greyerz: “I will tell you some very important reasons why investors should not worry about the recent turbulence in the gold market.  First of all it was a smash in paper gold.  If you look at our company, as just one example, we did not have one single seller in the last few weeks.

So during this takedown in gold and silver there wasn’t one single seller, only buyers..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Refiners_Cant_Keep_Up_With_Massive_Global_Gold_Demand.html

Kaye - This Move To Destroy Confidence In Gold Has Failed

"Today outspoken hedge fund manager William Kaye told King World News that the central planners’ move to destroy confidence in gold has failed.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions and who is the founder of Pacific Group in Hong Kong, had this to say in part II of an outstanding two part series of written interviews that has now been released.

 

Eric King:  “Bill, you spoke on KWN last time about gold eventually seeing the greatest short squeeze in history.  How has this takedown in gold and the corresponding physical offtake affected your thoughts on how this squeeze will unfold going forward?”

 

Kaye: “Well, as I said earlier, these guys are evil, but they are not stupid.  There is a real possibility that, despite the fact there was a reasonable gambit that they could succeed in shaking confidence, and I think that certainly was one of the key motivations here over the last week, (central planners were thinking) ‘Let’s destroy the psychology that accompanies a 12-year bull market.  Let’s see what we can do to destroy that psychology, and maybe we can extend the regime that we want for a bit longer than would otherwise be the case.’ 

 

That’s an interesting gambit, and I have to say I could see why reasonably bright people would think that could work, and there have been cases in history where it has worked.  But it’s not working...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/20_Kaye_-_This_Move_To_Destroy_Confidence_In_Gold_Has_Failed.html

 

Sinclair: Physical Gold Buyers Will Now Crush Central Planners

"Today Jim Sinclair sent King World News one of the most extraordinary and powerful pieces he has ever written in his 50 years in the financial business.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis and grew up under the tutelage of his father Bert Seligman, who was business partners with legendary trader Jesse Livermore, had to say in this remarkable piece.

 

Sinclair: “Gold is freeing itself as an emancipation process from the gold banks control via paper gold that has no gold whatsoever involved in it.  The thralldom of the gold price ends when the Evil Kings of Gold, the Gold Banks, are clearly proven to have no gold clothes on.

The emancipation of gold from paper is now in progress as physical demand increases unperturbed, and rather pleased by the lower price of the metal of kings.  The central planning fools, in their effort to try and break the mystique of gold via a paper crash, have only ignited what once was sparks into flames for its physical accumulation....

“They do not understand that the day demand stands for full delivery at a contract maturity, even at these low prices, the fraudulent nature of the gold future, gold lease, and OTC gold hedges is revealed and therefore destroyed.

This could occur in gold at any price and need not be foreshadowed by a rise in the price of the metal.  Since there is no gold anywhere and above ground supplies are now being significantly consumed by us, the physical gold market will set the price unencumbered by governments or manipulators.  This freedom from manipulation by paper is the emancipation of gold.

Every time you buy one ounce of physical gold you cast your vote against the system and its masters, the banksters.  These sociopaths rule by being bullies and committing fraud.  Their days are numbered and gold is the ‘White Knight’ that is going to slay the evil dragon..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/21_Sinclair__Physical_Gold_Buyers_Will_Now_Crush_Central_Planners.html

 

Chinese Gold and Silver Exchange Has 'Almost Run Out of Available Gold Bullion' Awaits Imports

"Hong Kong's century old Chinese Precious Metals Exchange has reportedly almost run out of gold bullion at these price levels and is waiting for imports to come in next week from Switzerland and London.

Apparently they are not able to source from within their region which is a bit of a surprise since China is a major gold and silver producer.  Gold seems to be moving from West to East.

Why aren't they also going to New York for available bullion supply at the Comex?  

The Hong Kong Gold and Silver market seems to be more of what is called a 'bullion market' rather than a paper speculative market dealing in highly leveraged position trading with only small amounts of actual metal changing hands.

"The Chinese Gold and Silver Exchange Society operates in Hong Kong as a registered society. At present, we have 171 member firms which are sole proprietorships, partnerships or limited companies. Among these 171 firms, 30 are bullion group members. Bullion group members who want to manufacture good delivery bars may apply for the qualification of accredited refineries. Upon accreditation, these member firms may produce 99% fineness 5-tael gold bullions and 999.9% 1-kg gold bullions for delivery on the Exchange. The bullions they produce also circulate widely in the open market."

at  http://jessescrossroadscafe.blogspot.com/2013/04/chinese-precious-metals-exchange-has.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver

"The following are 10 signs that the takedown of paper gold has unleashed an unprecedented global run on physical gold and silver...
#1 According to Zero Hedge, the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday...

According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

#2 Precious metals dealers all over the United States are having a really hard time keeping up with demand right now.  According to Chris Martenson, many are warning customers to expect waiting times of five to six weeks at this point...

In the U.S., all of the dealers I talk to are reporting huge demand and brisk buying. Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price. Delivery times are 5 to 6 weeks out now – that's an unusual situation.  If this recent slam was designed to scare people away from gold, it did not have that desired outcome; in fact, just the opposite..."

at  http://theeconomiccollapseblog.com/archives/10-signs-the-takedown-of-paper-gold-has-unleashed-an-unprecedented-global-run-on-physical-gold-and-silver

Pento - Gold Reveals Global Markets On Thin Ice

"Today one of the top economists in the world sent King World News an exclusive piece covering the incredible turbulence that has just taken place in the gold market .  Michael Pento, who heads Pento Portfolio Strategies, also believe that major global economies will be badly whipsawed going forward.  Below is his tremendous piece.

 

“Explanations for this gold selloff abound everywhere in the mainstream media and nearly all of them are inane and incorrect.  The silliest among all the reasons offered for the current bear market in gold is that Bernanke has recently morphed into a form of Paul Volcker; even though he has maintained the Fed’s zero percent interest rate policy and massive money printing continues unabated.  His policies have, and will continue to significantly weaken the intrinsic value of the dollar—so you can just summarily dismiss that reason. 

Another vacuous reason to explain the drop of the gold price is that the U.S. is eventually headed towards a trade surplus...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Pento_-_Gold_Reveals_Global_Markets_On_Thin_Ice.html

 

Farage - People Are Lined Up Around The Block To Buy Gold

"Today Nigel Farage spoke with King World News at length about the incredible gold buying binge that is taking place all over the world, as well as what King World News readers globally should be doing with their gold right now.  Farage, who is Britain’s popular MEP, also spoke about a loss of confidence governments and in the financial system.  Below is what Farage had to say in this exclusive interview.

 

Eric King:  “As I told you, Nigel, there was massive demand over in Canada (at) ScotiaMocatta, people literally lined up for hours and hours to get physical gold and silver.  And that was confirmed also in Keith Barron’s interview here on KWN that this was happening in Switzerland at UBS.  People aren’t being fooled here (by the recent takedown), and they are just trading in fiat money for real money.  I’m just curious what your thoughts are because they (central planners) don’t seem to be fooling anybody?”

Farage: 

“No they are not.  We are now incredibly cynical about our government, about our central banks, about all of the things that we are told.  They are sure signs, if people are queued up around the block to buy physical gold, that people are scared...."

 

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Farage_-_People_Are_Lined_Up_Around_The_Block_To_Buy_Gold.html

 

Kaye - Central Planners Risk Having All Hell Break Loose Here

"Today acclaimed hedge fund manager William Kaye warned King World News that central planners are risking losing control of the financial system entirely and having all hell break loose.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions and who is the founder of Pacific Group in Hong Kong, had this to say in part I of an absolutely incredible three part series of written interviews that will be released today.

 

Eric King:  “Going back to the West and what they are up to here, obviously as gold rises it’s an indictment of all fiat currencies, particularly the dollar, Bill, and when you see this kind of orchestrated smash (in gold and silver recently), I know red flags go up for you and you think, ‘What’s wrong?  What’s going on behind the scenes?’”

Kaye: 

“I think that’s a fair comment.  The major question that you would love to be able to answer is, what are these guys scared of?  They (Western central planners) are obviously worried about something because this (recent takedown) smacks of real desperation....

“Enquiring minds could speculate about a number of things.  It could be something financial.  It could be something geopolitical such as a war in the Middle-East.  Iran of course is still in play.  You have to believe that the powers that be are aware of something.  They are very concerned about something, and they need to reset the price of gold lower in the near-term for that reason.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Kaye_-_Central_Planners_Risk_Having_All_Hell_Break_Loose_Here.html 

 

Switzerland To Buy A Stunning 1,000 Tons Of Physical Gold?

"Today a legend in the business told King World News that Switzerland may be preparing to purchase a stunning 1,000 tons of physical gold.  Keith Barron, who consults with major gold companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, spoke about this remarkable situation and what it means for investors.  Below is what Barron had to say in part II of this exclusive interview.

Eric King:  “Andrew Maguire recently told KWN that the LBMA system was in trouble and cash settled, refusing to give entities their gold.  Earlier you said to me that there is a run on gold at Scotiabank in Canada and UBS in Switzerland.  What do you make of this incredible situation, Keith?”

Barron: 

“What we discussed earlier, the fact that ABN AMRO was refusing to give customers their gold back, is one of the primary things that has triggered this massive run on physical gold and silver....

“And look at how the West has responded.  For instance, Mario Draghi’s statement about Cyprus selling their gold was patently false because that gold has already been re-hypothecated twenty different times.  Meaning, it’s not there to sell anymore.

But that was really a meaningless statement designed to to scare people out of ETFs and free up a lot of physical gold so certain entities who are short of physical gold could get assistance.  That’s what has happened here.

The situation is bad all the way around in the West, and the fact that the Germans have given the Americans 7 years to return a small portion of their gold reserves back to the Bundesbank is incredible.  It is especially revealing when it comes to the desperation that is really going on behind the scenes. 

 

It is going to take the United States 7 years to unwind the leases on just that 300 tons of gold, never mind the other 1,100+ tons of gold the US supposedly has stored for Germany.  But it will take that long just to get that little bit of physical gold back to Germany.

I would also like to point out two very developments taking place in Switzerland.  A movement inside Switzerland has already acquired 100,000 signatures for two things to be put on the ballot.  The first one would eliminate any future sales by the Swiss National Bank. 

But the second, and far more compelling measure, would be for Switzerland to buy back 1,000 tons of gold that it has already sold.  To get 1,000 tons of physical gold in this market is going to be a Herculean task, and it is certainly going to vault the price of gold much higher than current levels.  This will be a very interesting situation to watch unfold in the physical gold market.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/18_Switzerland_To_Buy_A_Stunning_1,000_Tons_Of_Physical_Gold.html

 

ROSS NORMAN While Paper Gold Crashes - Physical Demand Sees Unprecedented Demand

"The monumental short selling on COMEX on Friday and Monday had the desired effect - it took out key technical levels and precipitated a cascade of further selling as traders who were long the June contract capitulated. The selling begat more selling and the rest is history. A classic short squeeze executed to perfection.

The trading decision to short gold was taken, we think, after successful smaller attempts by a few hedge funds in January and December who had 'cased the joint' following what appeared to be a 'normalizing economy', an argument strengthened by golds apparent failure to rally on Cyprus, Bank of Japan QE and of course North Korea. It was then a question of timing...  On the gold futures exchange the traders
have a gearing of about 20:1 over the physical traders aided in great part by a reduction in the margin requirements by CME last November (they have since reversed that position).

Since then, the Q1 economic growth story has faded fast, but the trap had already been set. The selling on COMEX was large and fast - a really spectacular display of shock and awe. There is no other way.

With gold falling to a low of $1335, physical demand started slowly but has picked up momentum. The Indian market was the first to respond as prices bottomed (no surprise there - they are always adept at spotting bargains), followed soon after by Dubai, Japan, Europe and now China. Sourcing small denomination bars is now proving difficult as stocks evaporate and dealers can expect to wait between 4 and 6 weeks for fresh stocks from the gold refiners. Premiums on bars, as one might expect, are rising fast.

Rarely has the gold market seen such a clear split, with the paper traders heading south while the physical heads north. The former has the advantage of leverage (via the futures) while the latter has scale..."

at http://news.sharpspixley.com/article/ross-norman-while-paper-gold-crashes-physical-demand-sees-unprecedented-demand/159786/

Guest Post: This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks

"I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

The central plank of Bernanke's magic recovery plan has been to get everybody back borrowing, spending, and "investing" in stocks, bonds, and other financial assets.  But not equally so - he has been instrumental in distorting the landscape towards risk assets and away from safe harbors.

That's why a 2- year loan to the US government will only net you 0.22%, a rate that is far below even the official rate of inflation.  In other words, loan the US government $10,000,000 and you will receive just $22,000 per year for your efforts and lose wealth in the process because inflation reduced the value of your $10,000,000 by $130,000 per year.  After the two years is up, you are up $44k but out $260k for net loss of $216,000.

That wealth, or purchasing power, did not just vanish: it was taken by the process of inflation and transferred to someone else.  But to whom did it go?  There's no easy answer for that, but the basic answer is that it went to those closest to the printing press.  It went to the government itself which spent your $10,000,000 loan the instant you made it, and it went to the financiers that play the leveraged game of money who happen to be closest to the Fed's printing press.

This explains, almost completely, why the gap between the rich and everyone else is widening so rapidly, and why financiers now populate the top of every Forbes 400 list.  There is no mystery, just a process of wealth transfer of magnificent and historic proportions; one that has been repeated dozens of times throughout history..."

at http://www.zerohedge.com/news/2013-04-16/guest-post-gold-slam-massive-wealth-transfer-our-pockets-banks

Maguire - LBMA Default Triggered Gold & Silver Takedown

"With massive selling once again in the gold and silver markets, today whistleblower Andrew Maguire told King World News the reason for the recent takedown in gold and silver was because of an imminent LBMA default.  Here is what Maguire had to say in part II of this remarkable and exclusive interview. 

 

Maguire:  “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 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 don’t understand what has been happening since Cyprus....

“Entities went to the LBMA and said, ‘We don’t 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 it.”

Maguire also added: “We are nearing the end of this decline.  Physical demand is already beginning to catch up with leveraged paper.  If gold were to trade into the low $1,300s it would be unsustainable for very long.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Maguire_-_LBMA_Default_Triggered_Gold_%26_Silver_Takedown.html

Bullion Shortages Develop As Retail Demand Skyrockets

"With incredible turbulence in the gold and silver markets, today John Hathaway informed King World News that the massive two-day paper selling in the gold market unbelievably eclipsed the entire annual production of every gold mining company in the world.  KWN was given exclusive distribution rights to this outstanding piece by superstar John Hathaway of Tocqueville Asset Management L.P..  John is without question one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/16_Massive_Paper_Gold_Selling_Eclipses_Annual_Mine_Production%21.html

Massive Paper Gold Selling Eclipses Annual Mine Production!

"With incredible turbulence in the gold and silver markets, today John Hathaway informed King World News that the massive two-day paper selling in the gold market unbelievably eclipsed the entire annual production of every gold mining company in the world.  KWN was given exclusive distribution rights to this outstanding piece by superstar John Hathaway of Tocqueville Asset Management L.P..  John is without question one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.

 

By John Hathaway, Tocqueville Asset Management L.P.

Massive Paper Gold Sales Eclipse Annual Mine Production

 

April 16 (King World News)

 

Gold bullion prices have been subjected to a cleverly orchestrated bear raid in our opinion.  Selling of paper Comex contracts on Friday, April 12th, and Monday, April 15th, totaled 1 million contracts, exceeding global annual gold production by 12%.  The attack succeeded when the technical support in the low $1500’s/oz. easily gave way and led to waves of forced selling.  The volume is without precedent and has all the characteristics of a panic liquidation driven by naked short selling....

There is no way to know where or when the liquidation will end, but it will inevitably do so, probably sooner rather than later.

According to our source at the World Gold Council, physical buying from India and China, which represents half of global gold consumption, remains robust.  Central bank buying activity shows no signs of abating.  The notion that weak peripheral European states will be forced to sell their gold holdings is fanciful.  A more likely scenario is that these holdings would be used as collateral to support additional credit to the sovereign.

All in all, it appears to us that this gold sell off was made in America, based on an assessment of technical weakness by a large number of opportunistic players, and supported by dubious macroeconomic speculations.  At the very least, a sharp rebound based on short covering and physical buying should be expected once the panic has run its course.  The bigger consideration is whether the validity of the rationale for gold has changed..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/16_Massive_Paper_Gold_Selling_Eclipses_Annual_Mine_Production%21.html

 

Jim Grant on the Gold Price

"Here is a video interview of Jim Grant discussing the steep drop in the gold price. He says it was the result of the “structure” of the market. I interpret “structure” to mean who is invested in gold and how are those investments financed, along with “technical” factors. He compares it to the 1987 stock market crash and the 1994 bond market crash. Both were dramatic, but did not leave a lasting impact on the future course of those markets.

Grant says that gold is an investment in our destiny..."

at http://bastiat.mises.org/2013/04/jim-grant-on-the-gold-price/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MisesBlog+%28Mises+Economics+Blog%29

Gold Daily and Silver Weekly Charts - Shock and Awe in the Currency Wars - Silver Shenanigans

"“This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.

Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold. So what they are trying to do is scare the individual investor out of bullion. Clearly there is something desperate going on....

I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.

The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail.

So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.

And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency. The Japanese are now going to print money like the Fed. They are lobbying the ECB to print more. So I see this as a dollar protection policy.

...I know where the gold is coming from in the market, it’s just paper. It’s naked shorts, there is no gold there. If somebody wanted to take delivery on those contracts nobody would be able to provide it. I don’t know what the source of the (physical) gold is. Some people are saying that the actual stocks available for possession are rapidly declining...”

Paul Craig Roberts, Fed Orchestrated Smash in Gold..."

at http://jessescrossroadscafe.blogspot.com/2013/04/gold-daily-and-silver-weekly-charts_12.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

Why Is Gold Crashing?

"...Andrew Maguire says that the crash is solely in the paper gold market … and that there is actually a shortage of physical gold. Many other sources make the same claim.

Egon von Greyerz – founder and managing partner at Matterhorn Asset Management – argues:

They shouldn’t be concerned about the temporary pressure on gold.  This decline has nothing to do with the physical market because enormous demand for gold continues.

The paper market in gold is not a real market, and at some point in the near future paper gold holders will wake up and realize they are holding are worthless pieces of paper.  This is when the world will witness one of the greatest short squeezes in history as investors panic in to physical and the price of gold explodes to the upside.”

London bullion dealer Sharps Pixley thinks that the crash was largely initiated by a single entity:

The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level… the line in the sand.

Two hours later the initial selling, rumoured to have been routed through Merrill Lynch’s floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market – it had the hallmarks of a concerted ‘short sale’, which by driving prices sharply lower in a display of ‘shock & awe’ – would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called ‘stopped-out’ in market parlance – probably hidden the unimpeachable (?) $1540 level.

The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production – too much for the market to readily absorb, especially with sentiment weak following gold’s non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data.

***

By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie \; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still.

Gold Core’s Mark O’Byrne agrees.

James Rickards thinks the Fed is manipulating the gold market (and every other market).

Former assistant Treasury Secretary Paul Craig Roberts says:

Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar’s exchange rate. The Fed used naked shorts in the paper gold market to offset the price effect of a rising demand for bullion possession. Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached.

***

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

***

Bullion dealer Bill Haynes told kingworldnews.com that last Friday bullion purchasers among the public outpaced sellers by 50 to 1, and that the premiums over the spot price on gold and silver coins are the highest in decades. I myself checked with Gainesville Coins and was told that far more buyers than sellers had responded to the price drop.

***

In addition to short selling that is clearly intended to drive down the gold price, orchestration is also indicated by the advance announcements this month first from brokerage houses and then from Goldman Sachs that hedge funds and institutional investors would be selling their gold positions.

***

I see the orchestrated effort to suppress the price of gold and silver as a sign that the authorities are frightened that trouble is brewing that they cannot control unless there is strong confidence in the dollar.

Roberts also says:

This is an orchestration (the smash in gold).  It’s been going on now from the beginning of April.  Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.   Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold.  So what they are trying to do is scare the individual investor out of bullion.  Clearly there is something desperate going on….

Indeed, this may tie into the Federal Reserve leak of insider information.  Specifically, Roberts writes:

The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.

As Congressman Grayson pointed out in a recent letter, right after the Federal Reserve’s Open Market Committee leaked valuable inside information to big banks, Goldman told its clients:

We recommend initiating a short COMEX gold position ….

Background on gold manipulation."

at http://www.zerohedge.com/contributed/2013-04-15/why-gold-crashing

John Mauldin: France Headed for Banking Crisis [VIDEO]

"John Mauldin discusses concerns about France’s financial sector; he thinks that France could be the next problem country for the Euro. John Mauldin says that France is headed for a banking crisis. He was in Cyprus before the original bailout was proposed and already saw problems in the small nation Island.  He notes that French banks are way over-levered and have a much bigger global footprint than even US banks. Mauldin says the test for the Euro will be France, not Italy, Spain or any of the other countries. Recently, Kyle Bass said France is the next problem country in the Euro zone. Wilbur Ross called France the sick man of Europe. The Mauldin interview is embedded below:..."

at http://www.valuewalk.com/2013/04/john-mauldin-france-is-system-risk-for-eurozone/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+valuewalk%2FtNbc+%28Value+Walk%29

Roubini : Spain is The Elephant in The Room

"Nouriel Roubini : "You can try to ring fence Spain. And you can essentially try to provide financing officially to Ireland, Portugal, and Greece for three years. Leave them out of the market. Maybe restructure their debt down the line." "But if Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side—and also too big to be bailed out." - in recent interview with CNBC"

at  http://nourielroubini.blogspot.com/2013/04/roubini-spain-is-elephant-in-room.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29

Tragedy, Panic & The Greatest Short Squeeze In History

"Today Egon von Greyerz told King World News that within months, as more fires start to burn in the financial system, the world will see a massive and stunning coordinated global rescue package and one of the greatest short squeezes in history.  Greyerz also said all of the major countries will participate.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview. 

 

Greyerz:  “Eric, this is a time when investors should really be concerned, and not because of the current correction in the gold price.  What we are facing is an unprecedented situation with most sovereign states being bankrupt, and the banking system also being bankrupt.

But at the same time stock markets are at a high, and so many investors are happy.  They are being led into having a false sense of security because they don’t understand that it’s the printed money that’s creating another asset bubble in the stock market.

Printed money is looking for a home and the stock market is the most obvious one.  This asset bubble will lead to a disaster.  The stock market is headed for a major long-term decline that will begin in 2013...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/14_Tragedy,_Panic_%26_The_Greatest_Shortest_Squeeze_In_History.html

Here Is What You Must Know About The Gold & Silver Smash

"On the heels of enormous volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, tells KWN readers what they must know about the incredible action that is now taking place in these key markets.

 

Below is Fitzwilson’s exclusive piece for KWN:

Fitzwilson:  “Give me control of a nation's money and I care not who makes it's laws” — Mayer Amschel Bauer Rothschild

“In trying to make sense of what occurred late last week and to start this week, it is important to remember this quote.  The unifying factor underlying much of what we witnessed is the stark reminder that all of these seemingly disparate events share a common factor, control of the money. 

 

Real wealth as a whole is comprised of natural resources, labor and intellect. If you control the money, you control everything.  The ability to control the unlimited creation of money is the ultimate form of power as Rothschild stated.  The holders of such power do not readily relinquish it.

It is not just the savage attacks on gold and silver.  Waves of selling have been launched in oil, copper, platinum and palladium.... 

Roosevelt confiscated gold for two reasons.  The first is that gold was money at that time.  A rival to fiat currency and fractional banking could not be tolerated.  The other reason is that he wanted to keep the upside from revaluing gold for his purposes, not to benefit the citizens.  The latter reason has to be a factor in what transpired.  Confiscate the real wealth, and then devalue to paper currencies in lockstep..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Here_Is_What_You_Must_Know_About_The_Gold_%26_Silver_Smash.html

Maguire - “155 Tons Of Paper Gold Sold In Just One Hour!”

"On the heels of another cascade of selling in gold and silver, today whistleblower Andrew Maguire told KWN that a stunning 155 tons of paper gold was sold in just one hour.  Maguire also spoke KWN about the remarkable amount of central bank buying which took place during that chaotic one hour time frame.  Below is what Maguire had to say in this remarkable and exclusive interview..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Maguire_-_155_Tons_Of_Paper_Gold_Sold_In_Just_One_Hour%21.html

Stockman on the Greatest Bond Bubble

"Here is a great 5 minute video where David Stockman is interviewed. It provides the historical backdrop of Ronald Reagan and the “deficits don’t matter” Republican ideology. The Fed’s bond bubble is discussed. It would make a great classroom video presentation and discussion. Most online versions of this video have the host’s final comments deleted..."

at  http://bastiat.mises.org/2013/04/stockman-on-the-greatest-bond-bubble/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MisesBlog+%28Mises+Economics+Blog%29

China Takes Another Stab At The Dollar, Launches Currency Swap Line With France

"One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that "Australia And China will Enable Direct Currency Convertibility", which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees", and "The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap", China has now launched yet another feeler to see what the apetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, "France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London." As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR's turn..."

at http://www.zerohedge.com/news/2013-04-13/china-takes-another-stab-dollar-launches-currency-swap-line-france

Mike Maloney: Today's Low Gold & Silver Prices Are Not Realistic

"Submitted by Adam Taggart of Peak Prosperity,

During this very tumultuous week for precious metals prices, Chris sat down with Mike Maloney, founder and owner of GoldSilver.com, one of the world's largest bullion dealers.
Mike is a true scholar of monetary history. His reasons for getting into the bullion business have their roots in a very predictable cycle that has happened time and again over the centuries (more accurately millennia):

1. A new monetary system is introduced, based on sound money (most commonly, using gold and/or silver)
2. Currency (e.g., paper bills backed by sound money) is introduced to faciliate trade and commerce
3. Governments begin to tinker with ways to 'print' more currency than can be fully backed (e.g., coin clipping, partially-backed notes, FRNs)
4. A false prosperity ensues. Those closest to the new money creation benefit most and debase the currency further to forward their advantage.
5. Reality begins to catch up with this deficit spending and the purchasing power of the currency weakens dramatically.
6. The monetary system collapses under too many claims on a limited pool of sound money.
7. Eventually, a new monetary system backed by sound money rises from the ashes (see Step 1, above).

Mike believes that we are currently experiencing Step 6 and that we will witness the birth of a new monetary regime within the next ten years.
What makes this moment in history unique is that all past monetary regime collapses have happened regionally. This is the first time in human history in which all the world's major currencies are collapsing together. Which is why he is so passionate about owning gold and silver.
In his opinion, we will soon witness the greatest transfer of wealth ever seen, as countries worldwide realize they need to revert to monetary systems backed by sound money (i.e., the precious metals). Those acquiring gold and silver beforehand will not only preserve their wealth as existing fiat currencies are extinguished, but will see staggering increases in their purchasing power. Those interested in learning more of Mike's specific vision can watch Episode One of his new Hidden Secrets of Money video series. (Chris and I received advance screenings of the next few episodes, which are excellent in terms of explaining the processes and shortcomings of our current monetary system.)..."

at http://www.zerohedge.com/news/2013-04-14/mike-maloney-todays-low-gold-silver-prices-are-not-realistic


 

Roubini : There is not going to be anyone coming from Mars or the moon to bail out the IMF or the Eurozone

"Nouriel Roubini : "There's not going to be anyone coming from Mars or the moon to bail out the IMF or the Eurozone.""So at some point you need restructuring. At some point you need the creditors of the banks to take a hit —otherwise you put all this debt on the balance sheet of government. And then you break the back of government—and then government is insolvent." - in a recent interview with CNBC"

at  http://nourielroubini.blogspot.com/2013/04/roubini-there-is-not-going-to-be-anyone.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29

Former US Treasury Official - Fed Orchestrated Smash In Gold

"Today a former Assistant Secretary of the US Treasury told King World News that the smash in gold and silver today was entirely orchestrated by the Federal Reserve.  Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also warned KWN that stocks of available physical gold are “rapidly declining.”  Below is what Dr. Roberts had to say in this extraordinary and exclusive interview.

Eric King:  “Dr. Roberts, we have this smash on gold and silver today.  Gold down $75 at one point and silver was down $1.75, your thoughts here?”

 

Dr. Roberts:  “This is an orchestration (the smash in gold).  It’s been going on now from the beginning of April.  Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.

Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold.  So what they are trying to do is scare the individual investor out of bullion.  Clearly there is something desperate going on....

“I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.

The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates.  Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail.  So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.

And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency.  The Japanese are now going to print money like the Fed.  They are lobbying the ECB to print more.  So I see this as a dollar protection policy.

...I know where the gold is coming from in the market, it’s just paper.  It’s naked shorts, there is no gold there.  If somebody wanted to take delivery on those contracts nobody would be able to provide it.  I don’t know what the source of the (physical) gold is.  Some people are saying that the actual stocks available for possession are rapidly declining.”

Eric King:  “Going forward, Dr. Roberts, what do you expect out of all of this?  If the gold is coming out of Western central bank vaults and flowing to the East, the old saying is, ‘So goes the gold, so goes the power.’”

Dr. Roberts: “Well, I think the power of the West has already been lost.  When you have off-shored your manufacturing and professional service jobs, you’ve hollowed out your economy.  So gold or no gold, the United States economy has been severely damaged and I don’t think it can recover.

This gold business (smash in price) is something to do with the dollar.  They are trying to save this Federal Reserve policy of negative real interest rates.  You can’t do that if the dollar loses value relative to gold because it implies it should be losing value relative to other currencies.

If the dollar’s exchange value drops, then the price of imports that come in here (to the US) rise.  So you get domestic inflation, and if you have domestic inflation you can’t have zero interest rates, or negative real interest rates.  So the Fed would lose control and that’s the basis of this policy.

They are trying to destroy gold as a (safe) haven from the dollar in order to carry on the Fed’s policy of negative real interest rates.  That is what is driving the illegal policy of selling naked shorts in order to manipulate a market.  If you and I were to do something like this without the government’s instruction or protection, we would be arrested (laughter ensues).  So the fact that it’s illegal, being done by the authorities, tells me that they are seriously worried about the dollar.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Former_US_Treasury_Official_-_Fed_Orchestrated_Smash_In_Gold.html