Do Not Look at These Charts Showing Registered 'Deliverable' Gold Bullion In New York

"Here are a few charts that show the rather striking decline in 'registered' gold, that is gold available for those standing for delivery, in the Comex warehouses. 

'Standing' by the way means standing around and waiting for someone to choose to fulfill your request for your contract to be fulfilled with actual bullion before the cut off date.

You can see from the first chart that the likelihood of someone actually standing for delivery and receiving bullion has never been less at The Bucket Shop.  Real metal is unfashionable amongst our financial sophisticates.

As for delivery and withdrawal of bullion, it is getting stronger and stronger in the East.  Second chart.  What can one say at such embarrassing behaviour?  What a bunch of rubes!

The shills and shrills for the bullion banks will tell you, in hair-splitting and often misleading detail that none of thismeans anything.    And you better listen to them because they are the ascended masters of the universe.

All of these categories and procedures at The Bucket Shop are meaningless.   And the holders of these millions of dollars in bullion often change the designations of their metal in new but meaningless ways in their quest to baffle the world.  And provide makework for their brokers and clerical staff.

The Bucket Shop is not likely to fall into a hard default.  You cannot lose when you own the game and set the rules, and can always force settlement.

Try not to underestimate the skillfulness and determination of market manipulators.  And especially their shamelessness. They hate it when you refer to the obviousness of their schemes. Like rigging almost every global market, and selling tailor made toxic instruments which they later bet against.  And getting caught, paying a wristslap fine to their cronies, and then claiming that they are the real victims of zealous prosecutors and your envy at their well-deserved success.

So nothing to see here.  Better not to look at it or ask any questions. About anything. Just leave your money and move along.

athttp://jessescrossroadscafe.blogspot.com.tr/2015/10/dont-look-at-these-charts-showing.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+JessesCafeAmericain+(Jesse%27s+Caf%C3%A9+Am%C3%A9ricain) 

Peak Manipulation: Resorting To Contradictory Headlines To Lift Stocks

"When stocks absolutely and completely have to go up, there is only one thing for it: the spurious headline from Nikkei (aka the new owner of the Financial Times). It is 2am in Japan but still, after Thursday's headline that:

• BOJ IS SAID TO SEE LITTLE IMMEDIATE NEED FOR ADDING STIMULUS

It is now time for the diametrically opposite:

• BOJ MAY NEED TO EASE AGAIN WITH FED DELAY, NIKKEI SAYS
  

and sure enough, USDJPY jerks higher and US equities hit the day's highs.

The supreme irony here is in the justification: according to Bloomberg, the possibility of stronger yen, prompted by lower expectations of Fed rate increase this year, may prompt further easing, Nikkei reports, citing unidentified BOJ watchers. 

What everyone seems to have missed, is that by being the global funding currency, the Yen has actually plunged on lower expectations of a Fed rate hike. In other words, what we are supposed to believe is that the lower Yen has prompted the BOJ to seek... a lower Yen."

at http://www.zerohedge.com/news/2015-10-05/peak-manipulation-riggers-resort-spurious-nikkei-headline-lift-stocks

The Bond Market Isn't Buying The Euphoria In These Ten Stocks

"While the ongoing cruciVIXion unleashed by the renewal of hopes for more easing by the ECB and BOJ as a result of the latest global economic swoon, coupled with the confirmation of a US slowdown which has pushed the Fed's rate hike into 2016 (if not 2017 as Goldman argues) has unleashed a bigger USDJPY-driven stock surge than the aftermath of Bullard's infamous October 2014 "QE4" speech, there are numerous instances where the far more rational credit market is simply not buying it.

Here are ten such instances.

As BMO's technician Mark Steele points out, "the divergences that have built up recently, with equities priced optimistically, and CDS priced pessimistically, are dramatic both in magnitude and breadth."

• While equities were rebounding last Friday, the CDS market kept pricing credit insurance higher. The equity rebound was not confirmed by credit risk improvement.
• Credit risk is still low, and as such, has yet to demand attention to the point where equity markets swing tightly with CDS contracts on an intraday basis. It does however need to be heeded.

BMO next looks at representative companies from each sector where it thinks equity investors need to be cognizant of where the CDS market prices risk. It finds the following:

• Large short-term divergences, where equity is priced optimistically, relative to CDS are found with Kinder Morgan, GM, Tesco, Ally Financial, Hewlett-Packard, Sprint andAES.
• Glencore sports an inverted curve
• Bombardier remains a member of the Mile High Club, where CDS is over 1000bps
• In the 14 days since Biogen CDS started trading, its quote went from 50 to 140bps. This contract is as liquid as a truck, yet that’s quite a downgrade.

And the evidence:

Kinder Morgan:

Glencore:

Bombardier:

General Motors:

at http://www.zerohedge.com/news/2015-10-05/bond-market-isnt-buying-euphoria-these-ten-stocks

World Financial System Now At Maximum Risk Of Collapse As It Faces Catastrophic Debt Trap

"Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that the world financial system is now at maximum risk of collapse as it faces a catastrophic debt trap.  He also discussed the staggering amount of gold buying from China, Russia, India and Turkey.

Egon von Greyerz:  “Eric, the situation in the world could not be more precarious. Governments of every major economy are desperately considering how to save themselves from a disastrous debt implosion leading to massive sovereign defaults. 

They have erroneously thought that all the credit creation and money printing since 2008 would have saved them and created inflation. But no, the deflationary pressures have continued everywhere. And both Germany and Japan have just confirmed how this deflationary pressure is continuing to destroy their chances of survival…

---

In Volatile Markets, Is Wealth Preservation King?

In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events. To find out what he and his company can do to help answer that age old question for you 

Egon von Greyerz continues:  “The money printing of these two countries is not having any effect. That makes more money printing a certainty. The European Union’s current package of 1 trillion euros will be nowhere near sufficient to save Europe. And when I say, ‘save,’ no one should be under the illusion that printing money can save any country.

World Caught In A Catastrophic Debt Trap

The world is in a catastrophic debt trap. Twenty-five years ago it might have been possible to take very tough measures to stop the world from drowning in its own debt. But no government or central bank was brave to make this decision. Having spoiled the people with debt-created affluence and socialism, voters would not accept austerity. So instead the world embarked on a credit-creation bonanza led by “the master,” Alan Greenspan. Thus global debt went from $25 trillion in 1990 to $225 trillion today.

Even though there was a hiccup in markets around the year 2000, the perceived prosperity in the world continued unabated until 2008.  This was the first time that the world realized that the emperor might be naked. But to save the world, another $80 trillion have been added to global debt.

Remarkable $220 Trillion Of Debt

So here we are in 2015 with $220 trillion of debt that can never be repaid. But the world cannot continue to live with these debts, even with interest rates at zero or negative in some countries.  Governments believe that they have abolished the laws of nature by manipulating interest rates.

But like all manipulations, this one will fail too. China and Russia are selling their U.S. Treasuries. And when investors realize that they are holding worthless pieces of paper, there will be a stampede of selling of government bonds worldwide. I would expect this to start in 2016 at the latest.

This will drive interest rates to at least the levels seen in the early 1980s of nearly 20 percent and possibly a lot higher. Of course this will lead to most debt becoming worthless. Money printing will then be in the hundreds of trillions and probably in the quadrillions as the derivatives bubble implodes.

Eric, in addition to the massive global debt crisis, the geopolitical situation is deteriorating fast and is another major risk factor.  

What is fascinating is that virtually nobody in the West realizes what is happening. Investors are piling into the stock market on every dip and very few people in the West buy gold. But in the East, both governments and individuals can clearly see the problem the world is facing. This is why they are buying ever-larger quantities of gold.

I’ve included a chart of the demand for gold in China, India, Russia, and Turkey (see chart below).

China, India, Russia & Turkey Buy A Staggering 18,000 Tonnes Of Gold 

Eric, between 2008 and July 2015 these countries have bought a staggering 18,000 tonnes of gold. This is absolutely remarkable.  Just in the first seven months of 2015 they have bought 2,100 tonnes. By early October they will be near 3,000 tonnes. Remember that annual gold mine production is around 2,600 tonnes. So these countries are continuously depleting gold stocks in the West.

It’s quite clear that Western central banks have a lot less gold than they officially declare. It’s also clear that a lot of gold bought by the East is coming out of the bullion banks. We also know that Comex stocks are very low..."

at http://kingworldnews.com/world-financial-system-now-at-maximum-risk-of-collapse-as-it-faces-catastrophic-debt-trap/

Global Investors "Panic" Most Since 2012

"If it feels like you’re reliving the market jitters of the Great Recession and eurozone crisis, it’s probably because you are. During this week, Marketwatch reports that global risk appetite dropped to "panic" levels for the first time since January 2012, according to Credit Suisse’s Global Risk Appetite Index.

That was back when investors feared a breakup of the euro bloc. Before that, the index reached "panic" state around the onset of the 2008 financial crisis, after the Sept. 11, 2001 attacks on the U.S., during thedotcom bubble and after Black Monday in 1987.

Get the picture?"

at http://www.zerohedge.com/news/2015-10-04/global-investors-panic-most-2012

Gundlach Explains Why The Market Hasn't Crashed Yet: "People Are Holding And Hoping"

"One week ago, after Carl Icahn joined the legion of doomsayers launched in mid-September by none other than the former "balls to the wall" bull David Tepper, we wondered who would be next:

On Friday we got the answer, when none other than the ascendant "Bond King", Jeff Gundlach, whose Doubleline Capital just recorded its 20th consecutive month of inflows (contrasting with 29 straight months of outflows for former bond Goliath Pimco) became the latest to join the dark side when shortly after an abysmal payrolls report, he warned that the U.S. equity market as well as other risk markets including high-yield "junk" bonds face another round of selling pressure.

While perhaps not as dire in his outlook as Icahn, Gundlach explained why far from the correction being over, the market still has a long way to go. He told Reuters that "the reason the markets aren't going lower is people are holding and hoping," Gundlach told Reuters in a telephone interview that "the market bottoms out when people are selling and sold out – not when they are holding and hoping. I don't think you've seen real selling in risk assets broadly. Markets need buying to go up and they need volume to go up. They can fall just on gravity."

So after taking a its biggest step lower since 2011 in the past month, why has the selling in the S&P500 stalled? Because, well, hope may not be a strategy but now with the Fed's credibility rapidly evaporating, it is all investors have, or as Gundlach puts it: "The reason the markets aren't going lower is people are holding and hoping." Incidentally, there is a reason why hope is not a strategy: in the end, it always fails..."

at http://www.zerohedge.com/news/2015-10-04/gundlach-explains-why-market-hasnt-crashed-yet-people-are-holding-and-hoping

The Surprising Reason Why Commercial Hedgers Will Stun Traders By Pushing The Gold Price Higher In Coming Weeks

"With gold and silver surging strongly on Friday’s U.S. Jobs Report, today King World News is pleased to share a piece which takes a remarkable look at the war in the gold market.  This piece also includes two key illustrations that all KWN readers around the world must see.

Jason Goepfert at SentimenTrader:  “Their (commercial hedgers) net position in gold is the lowest since June. In recent years gold hasn’t topped out until hedgers had reduced their position by much more than they have in recent weeks (see chart below).”

King World News note:  You can also see that even with the latest rally in gold, sentiment still remains at “excessive pessimism” levels.

King World News note:  This excessive pessimism also bodes well for the price of gold."

at  http://kingworldnews.com/the-surprising-reason-why-commercial-traders-are-going-to-continue-to-push-the-gold-price-higher-in-coming-weeks/

Paul Craig Roberts On Russian Bombings In Syria – Putin Sent A Decisive Message To The West

"With people around the world worried about the escalating war in Syria, today former U.S. Treasury official, Dr. Paul Craig Roberts, told King World News that with four straight days of Russian bombings in Syria, Putin has sent a decisive message to the West.

Eric King: “Dr. Roberts, about this situation in Syria, obviously the Russians have bombed key targets and the rest of the world is watching and saying, ‘Putin just took over and put a stop to the madness.’”

Dr. Paul Craig Roberts: “It certainly looks that way. You know Putin told the world at the U.N. meeting, ‘We can no longer tolerate the state of affairs in the world.’ So he told the United States, Europe, and the other puppet states such as Canada, Australia, and Japan that Russia will no longer tolerate this. And two days later they (the Russians) have taken over the situation in Syria..."

at http://kingworldnews.com/paul-craig-roberts-on-russian-bombings-in-syria-putin-sent-a-decisive-message-to-the-west/

The Global Economy Is In Serious Trouble But There Will Be A Short Squeeze In Gold

"...Ironically, Comex, the major futures market where billions of paper gold ounces are traded is not the market where the central banks purchase gold. Comex has become a casino where high frequency trading, spoofing and price rigging has become commonplace. The Swiss watchdog just launched a probe into possible collusion or manipulation of the precious metal trading by seven big bullion banks. In fact, there is growing evidence of a short squeeze developing with Comex’s available gold for delivery is overshadowed by demand on the order of 200 ounces for every one ounce held in the warehouses.

Gold was been in backwardation with the near month for delivery trading at a premium to gold for future delivery reflecting tightness in the physical market where there is less supply. Central banks buy physical gold with nineteen purchasing gold last year. Meantime, China’s Shanghai Gold Exchange has surpassed the trading on Comex where the shenanigans are banned, delivering over 64 tonnes in one week alone. Chinese investors are a big buyer of gold and withdrew almost 1,400 tonnes, up 150 percent in a year from Shanghai Exchange. Simply there’s too many paper ounces against too few physical ounces made less by the regular purchases of China, Russia and the Middle East. Gold players will learn that the shorts should “neither borrower or lender be.”

at http://kingworldnews.com/the-global-economy-is-in-serious-trouble-but-there-may-be-a-short-squeeze-in-gold/

Legend Who Oversees $165 Billion Reveals Why The Actions Of Central Planners Scare Him

"On the heels of another weak economic data release from the United States, a legendary chairman & CEO overseeing more than $165 billion, who is one of the most respected men in the financial world, revealed why the actions of central planners scares him.

Eric King: “Rob, we had a stock market crash in China and not too long ago the U.S. stock market gapped down 10 percent one morning. What are your thoughts as we go through this trouble that you said was coming?”

Rob Arnott: “What’s even more fascinating than a stock market crash after a bubble is the government trying to regulate falling markets out of existence. If somebody says to you, ‘If you sell, you might be arrested. If you recommend a sale, you might be arrested…"

at http://kingworldnews.com/legend-who-oversees-165-billion-reveals-why-the-actions-of-central-planners-scare-him/

This Is The Endgame, According To Deutsche Bank

"DB's Jim Reid lays out the "endgame" scenario, one which this website first said is inevitable back in 2009. With Citi and Macquariealready on board, expect what was once merely the figment of a "deranged tinfoil conspiracy-theory blog's" imagination, to become global monetary policy. And yes, the real endgame is the one we have said from day one: total fiat (and conventional economics) collapse.

* * *

From Deutsche Bank's chief credit strateigst

Our thesis over the last few years has basically been that the global financial system/economic fundamentals are so bad that its good for financial assets given it forces central banks into extraordinary stimulus and for them to continue to buy assets in never before seen volumes. The system failed in 2008/09 and rather than allow a proper creative destruction cleansing, policy makers have been aggressively propping it up ever since. This has surely led to a large level of inefficiency in the system which helps explain weak post crisis growth and thus forces them to do even more thus supporting asset prices if not the global economy..."

at http://www.zerohedge.com/news/2015-10-01/endgame-according-deutsche-bank

Wikileaks Exposes Secret Deal To Get Saudi Arabia On UN Human Rights Council

"Submitted by Michaela Whitton via TheAntiMedia.org,

Two years after the controversial appointment of Saudi Arabia to the U.N. Human Rights Council, leaked diplomatic cables have revealed the U.K. was a key player in the election of the Gulf State - despite the Saudis’ appalling human rights record.

The United Nations Human Rights Council (UNHCR) is tasked with the promotion and protection of human rights throughout the world. What’s remarkably under-reported (yet unsurprising) is the claim that notorious human rights abuser, Saudi Arabia, pledged $1 millionto UNHRC prior to winning the blood-stained seat.

What is surprising is the next chapter in the farcical saga.

In a classic case of you scratch my back, I’ll scratch yours, the leaked cables ? translated by U.N. Watch ?  allege that a secret vote trading deal was made by Britain and Saudi Arabia to ensure both countries were elected to the council.

Passed to Wikileaks in June, the classified files refer to Saudi talks with British diplomats prior to the November 2013 vote in New York..."

at http://www.zerohedge.com/news/2015-10-01/wikileaks-exposes-secret-deal-get-saudi-arabia-un-human-rights-council

This Is For The ‘Nothing Is Happening’ Crowd…

"A lot of people out there expected something to happen in September that did not ultimately happen.  There were all kinds of wild theories floating around, and many of them had no basis in reality whatsoever.  But without a doubt, some very important things did happen in September.  As I warned about ahead of time, we are witnessing the most significant global financial meltdown since the end of 2008.  All of the largest stock markets in the world are crashing simultaneously, and so far the amount of wealth that has been wiped out worldwide is in excess of5 trillion dollars.  In addition to stocks, junk bonds are also crashing, and Bank of America says that it is a “slow moving trainwreck that seems to be accelerating“.  Thanks to the commodity price crash, many of the largest commodity traders on the planet are now imploding.  I wrote about the death spiral that has gripped Glencore yesterday.  On Tuesday, the stock price of the largest commodity trader in Asia, the Noble Group, plummeted like a rock and commodity trading giant Trafigura appears to be in worse shape than either Glencore or the Noble Group.  The total collapse of any of them could easily be a bigger event than the implosion of Lehman Brothers in 2008.  So I honestly do not understand the “nothing is happening” crowd.  It takes ignorance on an almost unbelievable level to try to claim that “nothing is happening” in the financial world right now.

Within the last 60 days, we have seen some things happen that we have never seen before.

For example, did you know that we witnessed the greatest intraday stock market crash in U.S. history on August 24th?

During that day, the Dow Jones Industrial Average plunged from a high of 16,459.75 to a low of 15,370.33 before rebounding substantially. That intraday point swing of 1,089 points was the largest in all of U.S. history.

Overall, the Dow has down 588.40 points that day.  When you combine that decline with the 530.94 point plunge from the previous Friday, you get a total drop of 1119.34 points over two consecutive trading days.  Never before in history had the Dow fallen by more than 500 points on two trading days in a row.  If that entire decline had fallen within one trading day, it would have been the largest stock market crash in U.S. history by a very wide margin, and everyone would be running around saying that author Jonathan Cahn was right again..."

at http://theeconomiccollapseblog.com/archives/this-is-for-the-nothing-is-happening-crowd

Panic Is Spreading, Part 1: Surge in Junk Bond Defaults Imminent

"One of the early signs that a cycle is about to turn down is disorder in junk bonds. That’s because the companies that issue such bonds are by definition financially and/or operationally weak and therefore ultra-sensitive to changes in their environment. A modest drop in, say, consumer spending or the price of wind turbines will hardly be noticed by an Apple or GE but might threaten the survival of those companies’ weakest competitors. And as credit bubbles inflate, the weak in every field tend to proliferate as overexcited bankers and bond funds offer them plenty of rope with which to hang themselves.

So when such bonds start falling — which is to say when their yields start rising — that’s a sign of broad-based trouble ahead. From Tuesday’s Wall Street Journal:

Today’s Big Number: 15.7% of high-yield bonds trading at distressed levels

The commodity -price crunch fueled by China’s economic slow-down is taking a toll on the bond market.

Bonds from debt-laden companies in the metals, mining and steel industries are driving up distress ratios, an indicator that a wave of debt defaults could be on the horizon.

As of mid-September, nearly 15.7% of the roughly 1,720 bonds rated below investment grade traded at distressed levels, the biggest share since 2011, according to Standard & Poor’s Ratings Services. Such bonds were trading with yields at least 10 percentage points over comparable U.S. Treasurys. Yields on bonds rise when prices fall.

Companies with distressed bonds may not be able to refinance or access other forms of capita, said Diane Vazza, an S&P managing director.

The numbers suggest that many companies could default in the next seven to nine months. “There’s a very strong correlation” between bonds that fall into the distressed category and defaults, she said.

It’s not surprising that the commodities crash would impact the bonds of coal and oil companies. The big question is whether the carnage spreads to other kinds of junk. And over the last couple of months it has. The chart below shows the price of a junk bond ETF that last week plunged through the lows of the August mini-panic.

Wolf Richter and Zero Hedge just posted long, insightful pieces on this subject. See, respectively, This is When Bonds Go Kaboom! and BofA issues dramatic junk bond meltdown warning..."

at http://dollarcollapse.com/money-bubble/panic-is-spreading-part-1-surge-in-junk-bond-defaults-coming/

Smart Investors Will Seek Comfort In Gold – Here Are 7 Reasons Why

"The Fed is beginning to wake up to the fact that there is no easy escape 

from its artificial zero interest rate policy. The Fed will not be able to move very far off of the zero-bound range before the yield curve inverts and the U.S., and indeed the entire global economy, melts down. This means real yields will become more negative, the U.S. dollar will lose more of its purchasing power and economic instability will  intensify over time—the perfect fundamental backdrop for rising gold prices.

This is an edited & abbreviated excerpt from an article (see original article* HERE) by Michael Pento.

…The reason to own gold is the same today as it has been for thousands of years: it is the perfect store of wealth. Gold is:

1. portable,
2. divisible without losing its value,
3. beautiful,
4. extremely scarce, and
5. virtually indestructible.

It is simply the best form of money known to mankind.

The case for keeping your wealth in gold only becomes more bolstered when:

• real interest rates are negative,
• faith in fiat currencies is crumbling, and
• nation states are insolvent.

The massive and unprecedented Quantitative Easing programs and Zero Interest Rate Policies among the Bank of Japan, Peoples Bank of China, European Central Bank and Federal Reserve clearly show that Central Banks have no escape from manipulation of their bond market, currencies, equities and economies. Ms. Yellen’s recent tacit admission that the Fed Funds Rate must remain at zero percent for at least a full seven years was a clear validation of this premise…

With $44 trillion in total non-financial debt, which is up $12 trillion in the last 10 years alone, we have become a highly indebted nation that has become completely addicted to lower rates.

1. The U.S. high-yield bond market, which was the catalyst of the 2008 financial crisis, has grown to $2 trillion in size–a full $1 trillion of these new loans have been added since 2009…
2. According to CNBC, nearly two-thirds of the high risk Ginnie Mae guaranteed securities are issued by independent mortgage banks…and those independent mortgage bankers are deploying some of the most sophisticated financial engineering that this industry has ever seen. Sound familiar? With credit scores of 520 and down payments of just 3.5%, it is indeed clear that subprime mortgages are back with a vengeance. Therefore, a rise in rates would further cool the already lukewarm housing market… Rising interest rates would not cause renters to become homeowners. Instead, it would likely send the home price-to-income ratio, which is currently at 4.4, crashing back to its long-term average of 2.6.
3. Turning to the interest paid on U.S. bonds, it is clear that mean reversion of the 10-Year Note would bankrupt the Treasury. This is because that average rate is north of 7%. If the Treasury was forced to service the existing $13.2 trillion of publicly traded sovereign debt at that rate it would take about 30% of all Federal tax revenue. Just imagine what will occur when rising rates cause the economy and revenue to decline, as deficits explode. Remember that annual deficits soared to $1.5 trillion during the Great Recession; and that was with interest rates plummeting towards 2%.
4. And then we have emerging markets, where a rise in U.S. interest rates will reveal one of the great instabilities in the global economic system today.  A total of $9.6 trillion in U.S. dollar denominated debt is owned by non-U.S. borrowers. When the U.S. dollar strengthens the cost to those foreign borrowers rises a lot.  Emerging-market economies’ debt is now 167% of their gross domestic product, this is up 50 percentage points since the end of 2007, according to figures from the Bank for International Settlements…
5. Turning back to the U.S. stock market, low interest rates have fueled a whopping $2.5 trillion stock buyback binge since the end of March of 2009. Higher interest rates would see the end of this corporate buyback scheme that provides an artificial boost to EPS and share prices.
6. Let’s not forget the several hundred trillion dollars’ worth of interest rate sensitive derivatives, including credit default and interest rate swaps underwritten by institutions, which will have to once again crawl back to the government for another bailout once their bets become insolvent.
7. Finally, seven years of ZIRP has forced pension plans far out along the risk curve in search of higher returns: vastly increasing the amount of equity exposure in the portfolios in an attempt to generate the necessary 9% average annual returns. The Dow Jones Industrial Average has already dropped to a two-year low without one single basis point rate hike in the last nine years…[so] if a cycle of rate hikes were to take place now it would not only bring increased competition for stocks but also help push the anemic global economy into a recession. The result would be that there wouldn’t be a solvent public or private pension plan in the entire nation.

As the credibility and effectiveness of central banks comes more into question, investors will seek comfort in gold because it is the sole monetary solution that has stood the test of time. This is why there is a direct inverse correlation between the faith in fiat currencies and the price of gold… Every few decades a reminder is needed that all fiat currencies throughout history have lost all of their value…"

at http://www.munknee.com/smart-investors-will-seek-comfort-in-gold-here-are-7-reasons-why/

Frightened Investors Withdrew A Staggering And Near Record $63 Billion Out Of Mutual Funds In The Past 3 Months

"With many people still wondering if the downside action has been a test of the recent lows, today King World News is pleased to share an extraordinary piece which takes a look at the staggering amount of withdrawals by frightened investors out of mutual funds in the past 3 months as panic recently began to engulf the world.  This piece also includes two key illustrations that all KWN readers around the world must see.

October 1 (King World News) – Jason Goepfert at SentimenTrader:  “Investors fled U.S. mutual funds in August. Domestic funds suffered more than $60 billion in outflows over the past three months, among the most severe redemptions in thirty years. As a percentage of total assets, the damage wasn’t as bad but still ranks as extreme (see chart below).

It’s not news that investors got scared in August.

Many of the indicators that we looked at near month-end were at multi-year or even decade-long extremes of fear and uncertainty..."

at http://kingworldnews.com/frightened-investors-withdrew-a-staggering-and-near-record-63-billion-out-of-mutual-funds-in-the-past-3-months/