Bad loans continue to rise in Spain and Italy

"Spain and Italy reported today that the share of bad loans have continued to rise. There is nothing to suggest that this is the peak. In fact, further deterioration is likely.
Bad loans at Spanish banks rose to 10.87% in April from 10.47% in March and 8.73% in April 2012. These doubtful credits rose to 167.1 bln euros. Spain’s problem stems from the housing market boom. Prices have not bottomed..."

at http://www.creditwritedowns.com/2013/06/bad-loans-continue-to-rise-in-spain-and-italy.html

U.S. Mint Sales of Silver Coins Reach Record in 2013 First Half

"Sales of silver coins by the U.S. Mint have set a record high in the first half of 2013 seeing the best start to a year ever. Silver bullion coins were first offered in 1986.

Falling prices and concerns about being able to take delivery of coins amid continuing concerns about the US economy and currency debasement have led to the record demand.

Sales in 2013 have reached 24.03 million ounces and demand reached a monthly all-time high of 7.5 million ounces in January.

Demand remains at an “unprecedented level,” and sales of gold and silver coins may reach an annual record this year, Richard Peterson, the acting director of the mint, said on June 5.

Silver coin sales were suspended in January for more than a week because of a lack of silver inventory. In April, purchases more than doubled from a year earlier after prices tumbled 16% in two days due to unusually aggressive selling on the futures market.

Silver futures have declined 28% this year in New York, the biggest loss among the 24 commodities tracked by the Standard & Poor’s GSCI Spot Index but the smart money is continuing to accumulate on the dip.

The death of the gold and silver bull markets is greatly exaggerated as seen in the still very robust physical demand from investors and store of value buyers internationally including the U.S..."

at http://www.zerohedge.com/contributed/2013-06-19/us-mint-sales-silver-coins-reach-record-2013-first-half

Marc Faber Does Not Exclude GOLD Price Manipulation

"What has caused the price drop? Was it really a price manipulation by major U.S. banks?
Marc Faber : One can not exclude, of course, that there has been a manipulation. If you see that the banks can manipulate the interest rate, then that is of course also possible with the gold market. But it also speaks something about it. There is in the world around 150,000 tonnes of gold. About 21 percent of that gold is in the hands of the Western central banks - at least officially. Finally, there is no fiduciary evidence that the gold is actually there. Central banks in emerging markets have virtually no gold in reserve. If the gold price is artificially depressed down, then favors the Asian central banks. You can then buy at lower prices. So in the interests of Western central banks should not have been such an action."

at http://marcfaberchannel.blogspot.com/2013/06/marc-faber-on-what-might-have-cause.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

Physical Gold Cannot Possibly Lose Out Over Fiat & Digital Currencies – Here’s Why

"Gold cannot possibly lose its central position as the pre-eminent money used by the world for thousands of years. The aggressive measures of the Anglo-American Axis with regard to gold are absurd and they will lead to total disaster both for the Axis, and for the world which has been forced to follow its lead for over forty years..."

at http://www.munknee.com/2013/06/copernicus-galileo-and-gold-part-i/

Jim Rogers : There will be a huge currency turmoil going forward and when that happens I rather be with the creditors rather than the debtor

"Jim Rogers : "There is no such thing as a sound currency. There will be a huge currency turmoil going forward and when that happens I rather be with the creditors rather than the debtors," in KUALA LUMPUR @ Invest Malaysia 2013 : 14 June 2013"

at http://jimrogers1.blogspot.com/2013/06/jim-rogers-there-will-be-huge-currency.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FWOHK+%28Jim+Rogers+Blog%29

ANALYST: Now That The Cheap Money Is Coming To An End, We Can See The Bubble To End All Bubbles

"There's a Warren Buffett quote that's something akin to: When the tide goes out, you can see who's been swimming naked.
That's the theme of a note this morning from SocGen analyst Kit Juckes, who says that as rates are rising, and tapering talk picks up, it's beginning to be clear where the unsustainable bubbles have been built up.
No surprise: He says the bubbles were found in emerging markets, which have been crumbling lately..."

at  http://www.businessinsider.com/analyst-now-that-the-cheap-money-is-coming-to-an-end-we-can-see-where-the-bubbles-are-2013-6#ixzz2WauBdmvI

Didier Sornette: How we can Predict the Next Financial Crisis

"Good stuff here from Didier Sornette.  Sornette has done some superb risk on behavioral finance and risk management.  This recent Ted Talk is a must watch:

“While financial crashes, recessions, earthquakes and other extreme events appear chaotic, Didier Sornette’s research is focused on finding out whether they are, in fact, predictable. They may happen often as a surprise, he suggests, but they don’t come out of the blue: the most extreme risks (and gains) are what he calls “dragon kings” that almost always result from a visible drift toward a critical instability. In his hypothesis, this instability has measurable technical and/or socio-economical precursors. As he says: “Crises are not external shocks.”

An expert on complex systems, Sornette is the chair of entrepreneurial risk at the Swiss Federal Institute of Technology, and director of the Financial Crisis Observatory, a project to test the hypothesis that markets can be predictable, especially during bubbles. He’s the author of
Why Stock Markets Crash: Critical Events in Complex Financial Systems.“

at  http://pragcap.com/didier-sornette-how-we-can-predict-the-next-financial-crisis

 

Biggest Bond Bubble In History Is Turning Into Carnage

"“We’ve intentionally blown the biggest government bond bubble in history,” confessed Andy Haldane, Executive Director of Financial Stability at the Bank of England, to Members of Parliament in London last week. The bursting of that bubble was a risk he felt “acutely,” he warned. There have already been “shades of that.” And he saw “a disorderly reversion in the yields of government bonds” as the “biggest risk to global financial stability.”

And “shades of that,” as Haldane put it with classic British humor, namely understatement, are visible everywhere.

Ten-year Treasury notes have been kicked down from their historic pedestal last July when some poor souls, blinded by the Fed’s halo of omnipotence and benevolence, bought them at a minuscule yield of 1.3%. For them, it’s been an ice-cold shower ever since. As Treasuries dropped, yields meandered upward in fits and starts. After a five-week jump from 1.88% in early May, they hit 2.29% on Tuesday last week – they’ve retreated to 2.19% since then. Now investors are wondering out loud what would happen if ten-year Treasury yields were to return to more normal levels of 4% or even 5%, dragging other long-term interest rates with them. They know what would happen: carnage!..."

at http://www.zerohedge.com/contributed/2013-06-18/biggest-bond-bubble-history-turning-carnage

Whenever Margin Debt Goes Over 2.25% Of GDP The Stock Market Always Crashes

"What do 1929, 2000 and 2007 all have in common?  Those were all years in which we saw a dramatic spike in margin debt.  In all three instances, investors became highly leveraged in order to "take advantage" of a soaring stock market.  But of course we all know what happened each time.  The spike in margin debt was rapidly followed by a horrifying stock market crash.  Well guess what?  It is happening again.  In April (the last month we have a number for), margin debt rose to an all-time high of more than 384 billion dollars.  The previous high was 381 billion dollars which occurred back in July 2007.  Margin debt is about 29 percent higher than it was a year ago, and the S&P 500 has risen by more than 20 percent since last fall.  The stock market just continues to rise even though the underlying economic fundamentals continue to get worse.  So should we be alarmed?  Is the stock market bubble going to burst at some point?  Well, if history is any indication we are in big trouble.  In the past, whenever margin debt has gone over 2.25% of GDP the stock market has crashed.  That certainly does not mean that the market is going to crash this week, but it is a major red flag..."

at http://theeconomiccollapseblog.com/archives/whenever-margin-debt-goes-over-2-25-of-gdp-the-stock-market-always-crashes

Richard Russell: The Great Gold Rip-Off, China, Russia & Silver

"With the two day Fed meeting beginning, the Godfather of newsletter writers, Richard Russell, writes about what he calls, “The Great Gold Rip-off.”  This is a fantastic piece where Russell also discussed the impact on the silver market, whether or not the US has all of the gold it claims, and what Russia and China are up to at this time.

Richard Russell:  “It looks like the great gold rip-off is completed and over.  A few of the banks (JPM) spread the rumor that gold was heading for $1,000 and that the bull market in gold was toast.  This set off a panic in gold and silver, which served the perpetrators well. 

 

As the metals swooned, the crooks, who had sold the metals short, made a tidy fortune as the metals collapsed.  At the same time, they loaded up on cheap gold and silver.  In all, quite a play, during which a good many duped investors dumped their silver and gold.

 

I understand that there is now a huge speculative short position in gold on the Comex.  This position will have to be covered.  This means driving the shorts out of the market.  Thus, the manipulators will have cleaned up -- first by selling the metals short, and then by loading up on the metals at the bottom of the panic in preparation for (hopefully) the ride up.

My guess is that China and Russia soaked up a good deal of the bargain-priced gold near the bottom of the panic. China waits patiently while the US spends its way into bankruptcy.  Which reminds me, there's still lots of talk about the true amount of gold owned by the US.  Then why the hell doesn't the government or the Fed finally audit our gold holdings and put an end to the rumors?  From what I understand, neither the Fed nor the US government want an audit.  If the gold is really there, then why don't they put an end to all the rumors?  For heaven's sake, let's have an audit -- or is there really something to hide?

I feel we are besieged with rumors, secrets, lies and manipulations..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/18_Richard_Russell__The_Great_Gold_Rip-Off,_China,_Russia_%26_Silver.html

 

CANADA IS DOOMED: Three Signs That The Country Up North Is Screwed Beyond All Recognition

"You might be under the impression that everything is going pretty well in Canada, which had no banking collapse and only a mild recession in 2008-9.

You would be wrong.

The country is beset by political corruption scandals of the sort that people focus on when the economy is good. But it also has a massive ongoing housing bubble, and its economy is being propped up by a global commodities boom that now shows signs of slowing.
Let's break down the three ominous signs..."

at  http://www.businessinsider.com/the-three-reasons-canada-is-in-big-trouble-2013-6#ixzz2WUvDzIn1

Buy Chinese Yuan Jim Rogers Recommends

"The Chinese Yuan is an excellent long-term investment, potentially appreciating 500% and becoming the global reserve currency in the coming decades, legendary investor Jim Rogers told wealthdaily last week..."

at http://jimrogers1.blogspot.com/2013/06/buy-chinese-yuan-jim-rogers-recommends.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FWOHK+%28Jim+Rogers+Blog%29

Russia Calls For IMF Overhaul

"The BRICs can call for whatever they wish, but until they find some way to apply more effective pressure on the Anglo-American banking cartel and their politicians, they are not going to get much of anything.

Their own people cannot get much of anything in the way of reform in the status quo. 

RiaNovosti
Russia’s Putin Calls for IMF Overhaul, Bigger Role for BRICS
MOSCOW, June 14 (RIA Novosti) – Russia will use its presidency of the G20 to push for a radical overhaul of the International Monetary Fund and changes to its voting system to give developing economies a stronger voice, President Vladimir Putin said Thursday in an interview with RIA Novosti.

“The IMF frequently fails to keep up with the rapidly changing situation in global finance – first and foremost, in making effective and timely decisions,” Putin said in answers to written questions, adding that the decisions’ “implementation leaves much to be desired as well.”

Russia currently holds the rotating presidency of the G20, a formal grouping of the world’s 20 most powerful economies, and will lead the G8, a group of the world’s eight richest countries, in 2014.

Putin did not call for the outright dissolution of the IMF, but argued that the organization must adjust to “current economic realities” and said it was time to consider the issue of its “overall reorganization.”

In particular, he said that the voting system used at the IMF to determine policy should be changed to “enhance the role of developing countries,” with new weight given to the so-called BRICS group of Brazil, Russia, India, China and South Africa...

Read the rest here."

at  http://jessescrossroadscafe.blogspot.com/2013/06/russia-calls-for-imf-overhaul.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

Physical vs. Paper: The Shanghai Gold Exchange vs. the COMEX

"When push comes to shove, the COMEX is only pushing paper.

Weighed, and found wanting.

Shanghai Gold Exchange (SGE)

Weekly Gold Delivery From Vault

The above graph of physical gold delivery out of the Shanghai Gold Exchange (SGE) vaults was prepared by @KoosJansen based on the weekly reports from the Chinese portion of the SGE site. The SGE has confirmed these are deliveries from the vault and the numbers are updated on a weekly basis (each Friday). I will publish the links to the exact Chinese pages next week and will ensure there is updated weekly delivery data available here.

Monthly Physical Delivery From Vault: SGE Versus COMEX

The above graph of monthly gold delivery from vault demonstrates very clearly what many have expressed repeatedly on sites such as KingWorldNews -- the COMEX is a paper gold market while the SGE is quite clearly a world class market for physical gold..."

at http://jessescrossroadscafe.blogspot.com/2013/06/physical-vs-paper-shanghai-gold.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

Marc Faber : Derivatives are dangerous

"The danger is that the whole financial system could blow up due to the huge amount of derivatives still outstanding. Once again, excessive speculation is being fueled by artificially low interest rates, and asset bubbles exist everywhere..."

at http://marcfaberchannel.blogspot.com/2013/06/marc-faber-derivatives-are-dangerous.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

The Gold Story Is NOT Over. Far From It. Here’s Why

"Is it time to admit defeat, sell our positions, slink into a cave, and lick our wounds? Absolutely not. The only thing that changed over the past 60 days was the price of gold, and perhaps the mainstream’s perception of our industry. The realities of the fiscal and monetary state of the world, however, did not. Amid the ongoing rollercoaster ride of gold prices, clearheaded thinking reveals reasons to be optimistic..."

at http://www.munknee.com/2013/06/the-gold-story-is-not-over-far-from-it-heres-why/

Nouriel Roubini : France, does not look much better than the Periphery

"Nouriel Roubini : The bond vigilantes may have woken up first in Greece, Ireland, and Portugal. "But France, does not look much better than the periphery." - in CNBC"

at  http://nourielroubini.blogspot.com/2013/06/nouriel-roubini-france-does-not-look.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29

Stocks To Plunge As World Enters Massive Bank Panic

"Top Citi analyst Tom Fitzpatrick’s team sent King World News three extraordinary charts warning that a massive stock plunge and bank panic may stun bullish market participants and send shock waves through the global financial system.  KWN is pleased to share this warning with with our readers.  Below is what top Citi analyst Fitzpatrick’s team had to say along with three powerful charts. 

 

Fitzpatrick’s Team: 

“In the short-term we are now finally seeing some stress in the US equity markets (and more elsewhere).  Good levels are now being tested, which, if broken, would suggest further losses in the region of 10%+ (high to low).

We once again articulate the dynamics we would look for to suggest that a deeper correction (20%+) may be materializing...."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/14_Stocks_To_Plunge_As_World_Enters_Massive_Bank_Panic.html


 

Expect Panic & Devastation As Control Of Markets Is Lost

"Today one of the top economists in the world warned King World News that investors should expect panic and devastation as central planners lose control of markets.  Michael Pento, founder of Pento Portfolio Strategies, also spoke about precious metals and unprecedented turmoil in global markets.

 

Pento: “The Fed has recently expressed a desire to begin winding down its quantitative easing program in the next few months.  This would be the first step towards the eventual raising of interest rates.  Mr. Bernanke and the other members of our central bank believe the normalization of interest rates would occur within the context of robust markets and rising GDP growth.

However, it seems the Fed has only succeeded in duping some perennial bulls (and possibly even trying to convince itself) into believing that ending QE and the subsequent increase in rates would not adversely affect the economy … but markets are not so easily fooled...."

 

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/15_Expect_Panic_%26_Devastation_As_Control_Of_Markets_Is_Lost.html

 

FELIX ZULAUF: Japan Will Cause The Next Big Global Crisis

"For weeks, Japan's stock market has been in an absolute freefall.

Last night the Nikkei fell to 12,445, down 6.4%. But it wasn't long ago that commentators were rejoicing in Abenomics – the policy moniker for Japan's monetary stimulus and government spending plan – for its bold three-pronged approach to juice the Japanese economy.
Now, with the Nikkei taking a turn for the worse and the yen strengthening, it appears Abenomics has not had the intended effect.
Felix Zulauf, swiss hedge fund manager and macro thinker, goes even further. He thinks Japan will spark a global crisis within the next 18 months.
Zulauf spoke with Financial Sense:

I do believe that this will be the root cause of the next big global crisis whenever it breaks out, probably sometime over the next 12 to 18 months or so. First of all, I think the Japanese situation is very dangerous because Japan’s tax revenues, when you look at the numbers, they have to use almost 50% to service their government debt—their Federal government debt. So if interest rates rise further, Japan is basically bust…I think this is a very dangerous thing that the Japanese are starting and I believe it will most likely be the trigger for the next big global crisis in financial markets and the world economy.

For years, the Bank of Japan has been a bastion of economic conservatism. Not anymore..."

at  http://www.businessinsider.com/zulauf-zulau-global-crisis-from-japan-2013-6#ixzz2W7T5ghlq