Central Banks’ Gold Likely Gone-Eric Sprott

"Money manager Eric Sprott says, “The central banks’ gold is likely gone with no realistic chance of getting it back.” Don’t expect this revelation to get any coverage by the mainstream media. In an interview last week, Sprott’s analysis was met with words such as “gold bug” and “conspiracy theory.” Sprott answers that sort of disrespect by saying, “We’ve had so many conspiracies, I don’t know why anyone would think this was unusual.” To back up his point, he named “LIBOR, electricity markets in California and the Madoff” scandals. Sprott’s analysis shows a “flat supply” and at least a “2,500 ton net increase in gold demand” since 2000. “Where’s all the gold coming from?” asks Sprott. He says Western central banks “. . . keep supplying this market with product in order to keep the price down so nobody knows how vulnerable the situation is.” Sprott, who manages nearly $10 billion in assets, boldly proclaims, “We have a shortage of gold.” Join Greg Hunter as he goes One-on-One with Eric Sprott of Sprott Asset Management..."

at http://usawatchdog.com/central-banks-gold-likely-gone-eric-sprott/

Art Cashin - Prepare For Currency Wars & Ground Wars

"...Cashin also cautioned, “What troubles me in that area is the call for elections in Japan, and the fact that Mr. Abe, who had been Prime Minister, may come back. He has called for unlimited monetary easing from the Bank of Japan and the Ministry of Finance.

It sounds to me like we are on the verge of a major currency war, under the guise of monetary policy. He specifically said, ‘I want to see the rate of inflation go above 3%.’ Now I’m sure they are bright enough not to get into something like Germany in the Weimar Republic. But we’ve got central banks all around the world beginning to play with fire.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/16_Art_Cashin__Prepare_For_Currency_Wars_%26_Possibly_Ground_Wars.html

We Are Speeding Towards Economic & Social Devastation

"...In late 1789, France was heavily in debt and running a substantial annual deficit. The minister of finance at the time was a man named Necker. Necker was described as a man of “sterling honesty, who gave up health and fortune for the sake of France”. Before he left France forever, Necker was called “a wretch seeking only to enrich himself from the public purse”. So much for gratitude. He stood in the way of the “necessity” of borrowing money.

 

A new and improved version of fiat money creation called for the issuance of what were termed “assignats”. These were notes secured by the real estate recently confiscated from the Catholic Church. In addition, the notes carried an interest rate of 3%. To make them even more believable, they were beautifully engraved with a portrait of King Louis XVI. It was said that the issuance of the assignats would do amazing things such as stimulate business, give everyone buying power and that the debts of the nation could be repaid.

 

It was also specified that no more than 400 million would be printed. If they had lived up to the promise not to exceed 400 million, some of the positive outcomes might have come true. They did not. In the end, 26 billion were printed, as well as a new version called “mandats”. The “mandats” were said to be “good as gold”. In the end, both the assignats and the “mandats” were worthless.

 

This new fiat money scheme did not end well. The best job in France was probably working at the print shop cranking out billions of new paper money. While there was an initial boost to business and exports in general, it soon ran out of gas and France’s manufacturers shuttered their plants and massive unemployment ensued.

 

The country was flooded with paper currency. The value of the currency dropped precipitously. In an amazing display of ignorance and propaganda, the government attributed the declining value of the currency to a failure to print more paper money. Desperate people will say and do desperate things. Many forms of outright tyranny ensued. One of the manifestations of this tyranny was a policy of “Forced Loans” to the government inflicted upon those who still had any remaining wealth.

What makes this episode in monetary history so critically important to us today was not that the French in fact did this. The first important lesson for us was the speed with which it went from issuance to complete economic and social devastation. This was not a long drawn out affair. 

The second lesson comes from not only listening to the assurances of those who set this tragedy in motion, but the assurances and explanations along the way. History says that once set in motion, fiat money schemes cannot be reversed. Tragedy and collapse are the terminal destinations for this “train”. So just 70 years later, the French went down the same path that was so disastrous for their ancestors. 

The world is now repeating the same process, despite the knowledge of so many failed and tragic dalliances with currency depreciation in the past. One almost gets the sense that this oft-repeated story is simply part of the cycle of human existence."

 

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/18_We_Are_Speeding_Towards_Economic_%26_Social_Devastation.html

Embry - $67 Trillion Shadow Banking System & $10,000 Gold

"...So Keith Barron is correct because the problem is twofold: Existing production is going to go down a lot. So for the major mining companies, to achieve growth, not only are they going to have to replace existing production, which will fall significantly, but they will have to replace that plus even more development.

The problem is that with the current gold price and what has taken place in the share environment, I don’t see any possibility of that taking place. One of the great pieces of misinformation that has been spread by the agents of the people suppressing the price of gold, is that at these higher gold prices we would experience a boom in gold mining. Nothing could be further from the truth.”

Embry also added: “If you stop to think about it, Eric, the fact that the gold price is currently $170 lower at the end of August of one year ago, given what has gone on with respect to QEs, wars, and financial implosions, it’s preposterous that the gold price is where it is.

But it shows the power of paper, and that’s the reason we have all of these derivatives because you can control markets quite effectively, until you can’t. At that point the price of gold is going to go crazy. Thing about the fact that the shadow banking system is $67 trillion, and the leverage that creates in the system. I just think that the ‘end’ of this is going to be horrific.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/19_Embry_-_$67_Trillion_Shadow_Banking_System_%26_$10,000_Gold.html

The System Will Collapse, It Must Collapse-Chris Duane

"Chris Duane of TheGreatestTruthNeverTold.com says Hurricane Sandy should be a wakeup call for the entire country. Duane says, “The impact of a dollar collapse will be hundreds, if not thousands, of times more disruptive to life than a two day storm.” Duane goes on to say, “Sandy is a great precursor to help you get your act in gear.” According to Duane, most people are just as unprepared for a dollar calamity as they were for the recent super storm in the Northeast. A much bigger financial storm is coming. “The big problem with all this is counter-party risk. You cannot trust anybody; you can’t even trust the currency.” Duane trusts physical silver, and he thinks its 53 to 1 silver to gold ratio per ounce makes silver attractive. Duane thinks he could make a good case for “. . . a one-to-one silver to gold ratio, especially with all the paper manipulation.” Duane says, “The system will collapse, it must collapse, and people will learn a very difficult lesson.” In the next move up, Duane see’s silver “pushing past $50 per ounce.” Join Greg Hunter as he goes One-on-One with Chris Duane of TheGreatestTruthNeverTold.com. His YouTube channel has more than 5 million views in a little more than a year."

at http://usawatchdog.com/the-system-will-collapse-it-must-collapse-chris-duane/

Roubini : Eurozone Crisis Spreading From Periphery to Core

"Nouriel Roubini : “The economic contraction used to be in the periphery of the euro zone,” “It is spreading now to the core of the euro zone. For example, it is quite clear that France is entering a recession.” Roubini said in a speech in Mainz, Germany, today. - in bloomberg"

at http://nourielroubini.blogspot.com/2012/11/roubini-eurozone-crisis-spreading-from.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29

Jim Rogers: Market turmoil ahead

"Jim Rogers : "I would be very careful. The next couple years we're going to have turmoil and problems in most financial markets," Rogers told CNN's Andrew Stevens. "Don't invest in anything unless you, yourself know about it. Don't listen to some guy you see on TV -- even if it's me," added Rogers, who co-founded the Quantum Fund with George Soros. "You only stay with what you know and if all you know is money in the bank, put the money in the bank."

at http://jimrogers1.blogspot.com/2012/11/jim-rogers-market-turmoil-ahead.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FWOHK+%28Jim+Rogers+Blog%29

Embry: China To Import A Staggering 775 Tons of Gold In 2012

"Today John Embry spoke with King World News about the staggering pace of Chinese gold imports, Western central bank dishoarding of gold, the imploding global economy, which country will hyperinflate first, and mining shares. Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: “I’m very encouraged by the continued flow of the world’s gold into China through Hong Kong. The Chinese were essentially accumulating their gold by purchasing all of their domestic production, and now they are the largest domestic producer in the world.”

 

John Embry continues:

“But now they are buying the world’s gold at an ever-increasing rate. At this point, based on the imports through the first nine months of the year, if you pro-rated for the last three months, they would for the full year have imported a staggering 775 tons of gold.

Well, if you take that as a percentage of the non-Chinese production, that’s about 1/3 of the non-Chinese mine production that’s going into China. This wasn’t happening two years ago. So my question is, where is the gold coming from?...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/12_Embry__China_To_Import_A_Staggering_775_Tons_of_Gold_In_2012.html

Richard Russell - I See Catastrophic Insane Bubbles Everywhere

"Today the Godfather of newsletter writers, Richard Russell, has written a very serious piece discussing the fact that we are seeing insane bubbles in many different areas. But Russell also covers the state of the gold market and what investors should be doing with their gold. 

Here are Russell’s thoughts in his latest note to subscribers: “What's Bernanke doing for the dollar - or to the dollar? By creating multi-millions of additional dollars, the Bernanke Fed has knocked the dollar down. But due to weakness in other major currencies, the dollar (which is now oversold) has rallied over the last day or so.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/7_Richard_Russell_-_I_See_Catastrophic_Insane_Bubbles_Everywhere.html

Marc Faber : The U.S. will Default through a Depreciating Currency

"TGR: You've discussed investors leaving the European markets in favor of a "safe haven" in the U.S. Would U.S. bonds continue with such low yields with the European downgrades?

Marc Faber : For a while, yes, but at some point people will wake up and realize that the U.S. will default through a depreciating currency—in other words, through printing money—or by not paying the interest on the bonds. I don't think the U.S. will stop paying the interest, but printing more money will weaken the currency and produce higher inflation in consumer prices, asset prices and commodity prices. So being in U.S. government bonds will result in losses to investors through currency depreciation. - in a recent interview with in The theaureport"

at  http://marcfaberchannel.blogspot.com/2012/11/marc-faber-us-will-default-through.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

What You Need To Know About The Coming Gold & Silver Move

“My advice is if we get a dip in gold, I would buy that dip. Gold has a lot of support. I think long-term and that’s a bet that I’m always willing to make. I haven’t sold a single ounce of gold or a single share of a gold stock. That is because I am positioning and I am thinking about the long-term.

 

I am going to tell you what reassures me....

 

“China is what reassures me. Data came out of China on Monday that their gold purchases increased by a huge percentage from August to September. China, year-over-year, has increased their purchases of gold by a staggering three-fold.

China is in this to make sure they have something tangible they can trade for commodities, which they know they are going to need at some point in the future. People talk about China and say it is overbuilt, but that’s not entirely true. If you look on a per capita basis, China has 1/15 as many railways as the US has. 

Why is that important? Because railways are a way of saving energy and a way of transporting commodities from coast to coast, across the country. Why did Warren Buffett make his biggest investment into Burlington Northern? He gets it and it’s all about commodities and transportation. This is about building out infrastructure. 

China wants gold so they can continue with their plans. They want their currency backed up in gold and they are going to continue to buy it. So gold may weaken, but if it does people should buy it. Once gold starts taking out the all-important $1,800 level, you are not going to have a chance to get into the market. It will not let you in..."

 

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/7_What_You_Need_To_Know_About_The_Coming_Gold_%26_Silver_Move.html

Marc Faber : we will have a Systemic Crisis and Everything will Collapse

"Marc Faber : Over the next five years or so, we will witness slow growth or no-growth in Europe, coupled with continuing drop in the standard of living, both in the US and Europe.

This will require money pumping or printing of money to support economies. However, a large part of this will flow into assets and erode cost of living.

So, in the interim, we will have assets prices moving up, but I would say in the long term, we will have far better opportunities compared to today.

But I believe eventually we will have a systemic crisis and everything will collapse. That I think will provide better opportunity to invest. - in Business Standard"

at http://marcfaberchannel.blogspot.com/2012/11/marc-faber-systemic-crisis-and.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

We’re Witnessing Shocking Surge Of Retail Gold & Silver Buying

"Today one of largest gold and silver dealers in the United States told King World News, “We had massive retail buying of gold and silver this week. I would also add the buyers have come flooding in for the past two weeks, but there was literally an enormous surge of buying which took place on the gold and silver takedown on Friday.”

 

Here is the balance of what 40-year veteran, Bill Haynes, President of CMI Gold & Silver had to say: “This massive buying came in from many people who are brand new to the gold and silver markets. But at the same time, investors which own physical gold and silver at much lower prices were stepping up and adding aggressively to their existing positions.

Across the board, buyers expressed that they were deeply troubled about the deteriorating financial condition of the United States and other Western nations...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/4_Were_Witnessing_Shocking_Surge_Of_Retail_Gold_%26_Silver_Buying.html

The peripheral threat to France

"Compétitivité is a big deal in France right now.
The country’s loss of competitiveness is a serious issue, especially as its crisis-struck neighbours push on with wage cuts and labour reform.
On Monday, Louis Gallois, former head of EADS, is going to publish his report on the issue, and he’s expected to call for a “competitiveness shock”. He’s already said that he wants to see somewhere between €30bn-€50bn of taxes from the payrolls transferred to broader-based taxes, such as VAT, much to the delight of business leaders.
Reform really can’t come soon or fast enough. As The Economist writes (our emphasis):

Over the past 12 years, France has steadily lost competitiveness to Germany, its fellow euro-zone giant. A recent competitiveness study by the World Economic Forum ranked Germany sixth, and France 21st. Labour costs have risen far faster than in Germany. French public spending, at 56% of GDP, is ten percentage points higher than in Germany. France’s share of extra-EU exports has dropped and the trade deficit has reached €70 billion. The Netherlands, with a fraction of its population, now exports more than France.

Last year, the welfare taxes levied at French employers were among the highest in the eurozone at €50.3 for every €100 paid to an employee versus €28 in Germany, according to Medef, the French employers’ lobby.
If you’re unconvinced, here’s French economic decline and German strength in chart form:

But Francois Hollande’s government has only gone as far as call for a competitiveness “pact” (to be implemented over a five-year period). It hardly suggests urgency. And this already-too-weak message is much undermined by his 2013 budget, which, proposes to raise €20bn more in tax (half of which would come from the corporate sector), while reducing public spending by just €10bn. Unsurprisingly, businesses see it as a deterrent to job creation and investment..."

at http://ftalphaville.ft.com/2012/11/02/1243881/the-peripheral-threat-to-france/

ROSENBERG: Today's Jobs Report Had A Deflationary Feel To It

"On the face of it this morning's job report looked great.

The economy added 171,000 new jobs, last month's numbers were revised up and even the uptick in the unemployment rate ticked higher but the labor participation rate also climbed.

While Gluskin Sheff's David Rosenberg thinks there was "more treat than trick" in today's report, he did see some ugly details as well.

Specifically, average weekly hours were down and so were wages earned.

Average weekly hours for production and non-supervisory workers declined 0.3 percent to 33.6 hours and weekly hours in manufacturing fell 0.3 percent to 40.5 hours.

The index of aggregate weekly hours only rose 0.1 percent for private sector workers and fell 0.1 percent for those in the production and nonsupervisory segment.

Gluskin Sheff

Moreover there was no wage growth, in fact average weekly earnings declined 0.3 percent.

"That has a certain deflationary feel to it and the price of labor should hardly be contracting if the jobs market is in fact returning to normal in any meaningful way," according to Rosenberg. "And remember we also saw in this week's Q3 productivity report that real compensation per hour fell 0.4 percent SAAR – not great news for the working class."

at http://www.businessinsider.com/rosenberg-jobs-report-2012-11#ixzz2B6BwRTGC

Trade Data Suggest Another Global Downturn Is On the Cards

"Given the historical relationship between cross-border trade and global economic activity, today's report from the Netherlands Bureau for Economic Policy Analysis that world trade volumes fell for a third straight month and are within a hair's breadth of turning negative on a year-over-year basis suggests that another global downturn is on the cards."



at http://www.financialarmageddon.com/2012/10/trade-data-suggest-another-global-downturn-is-on-the-cards.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+financialarmageddon+%28Financial+Armageddon%29

Marc Faber : The U.S. is getting closer to a Revolution than Europe

"Marc Faber : “Eventually, you have either huge changes occurring in a peaceful fashion through reforms, or, usually, through revolutions,” Marc Faber said. The U.S. is getting closer to such a revolution, he said, as is Europe. - in CNBC"

at http://marcfaberchannel.blogspot.com/2012/10/marc-faber-us-is-getting-closer-to.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

Faber : The Deficit in The US will stay above a Trillion Dollars per annum

"Marc Faber : "I think the deficit here (in the U.S.) -- irrespective of who is in the White House -- will stay above a trillion dollars per annum for at least as far as the eye can see." - in Seeking Alpha"

at http://marcfaberchannel.blogspot.com/2012/10/faber-deficit-in-us-will-stay-above.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

Rick Rule - There Is Spectacular Demand For Gold Right Now

"Today Rick Rule told King World News that right now, “There is spectacular demand for gold.” Rule gave the example that “... the British (Royal) Mint, they are sold out of sovereigns. They have no more 2012 sovereigns.”

Rule also spoke about demand in the US and Canada, but first, Here is what Rule had to say about the ongoing crisis the Western world is facing: “One of the things about human nature is that people tend to want to believe things that comfort them. I certainly would prefer to believe that the governments are on top of all of the problems in the world and I don’t have to worry about it.”

Rick Rule continues:

“The difficulty is that I am too old for that. I’ve been around too long. I don’t believe it, but I would certainly love to be wrong. In direct answer to your question, the only thing I can believe is that people’s experience in the immediate past has been that the policy response to the 2008 collapse, which was to add liquidity, is a response that has worked.

So people believe because they want to believe that it will work in the future. I don’t believe it will have a happy ending...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/31_Rick_Rule_-_There_Is_Spectacular_Demand_For_Gold_Right_Now.html

Greyerz - One Of The Most Important Charts Ever

"...Greyerz also warned about insolvency: “I’ve spoken in the past about bankrupt governments, and the bankrupt banking system. If you value debt in the banking system at market value, then no major bank would be standing today. But in addition to that, if you then look at the derivative positions of the banks, this is a disaster waiting to happen (see chart).

 

The real over-the-counter derivatives outstanding, worldwide, is at least $1.1 quadrillion, and a major part of that is worthless. People have no idea what kind of turmoil and destruction this can cause to the global financial system. KWN readers need to understand that as the global economy edges closer and closer to collapse, the earthquakes in the financial system will become so enormous that it will eventually overwhelm politicians and central planners. 

This is why it is so important that investors protect themselves by holding physical gold and silver outside of the banking system because the coming derivatives disaster will create an explosion in the price of gold. And when the chaos is finally over and a new financial system emerges, gold and silver will be one of the few assets left standing.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/1_Greyerz_-_One_Of_The_Most_Important_Charts_Ever.html