Gold World News Flash |
- A Fundamentally Important Week Ahead Could Redefine Gold, Oil Trends
- Hourly Action In Gold From Trader Dan
- Jim?s Mailbox
- In The News Today
- Bernanke Can?t Fool Everyone All The Time
- 1930s Redux
- Reaching for Yield in the Bond Market
- How to Hedge Yourself from the Coming Fed Disaster
- GDXJ Junior-Gold ETF 2
- Kootenay Gold – The Best of Both Worlds
- Eric Coffin: Yukon! I've Hit Gold
- Wild Speculation Lies Ahead in Gold: Richard Russell
- LGMR: Gold & Silver Spike on Bernanke Speech, Hot Money Flows
- 10 Rules Before Investing In Precious Metals or Rare Coins
- Gold Advances to a New Record High ahead of Brenanke while Oil Steadies
- Crude Oil Falls on Equity Profit Taking, Gold Surges on Huge Increase in ETF Holdings
- U.S. Dollar In A Race To The Bottom With Other Currencies And The Winner Will Be Gold
- Casey Gold Summit Offers Investment Nuggets
- Will the Gold, Silver, Oil and other markets tolerate a $1.50 - $1.70 Dollar?
- Gold & Silver Spike on Bernanke Speech as "Hot Money" Flows Force "Competitive Devaluation"
- Fed Wants to Hoodwink Public, Only Fools Itself: Caroline Baum
- OPEC Members Seek $100 Oil to Counter Dollar
- Peter Schiff: "It's Scary How Clueless Bernanke Is"
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 5% on the Week
- 4closureFraud Needs Your Help - IRS Form 938 – I Have No Idea If This Is Important But It Sure is Curious
- Is MetLife's Foreclosure Process Review By Moody's A Harbinger Of The Excrement Show To Come?
- Richard Russell - Wild Speculation in Gold Lies Ahead
- The Bernanke Speech
- Stab the Beast with a Silver Dagger!
- 'We're at risk of financial collapse': Ken Clarke's warning for Western economies
- U.S. is currency war's "tomb maker" -China economist
- Jim Sinclair: The top callers in gold have been wrong for eight years
| A Fundamentally Important Week Ahead Could Redefine Gold, Oil Trends Posted: 15 Oct 2010 08:02 PM PDT courtesy of DailyFX.com October 15, 2010 04:16 PM The fundamental waves will pick up next week with top economic data and Fed commentary scheduled. Can this collective swell keep gold buoyant and jump start oil’s climb? North American Commodity Update Commodities - Energy Discouraged US Consumers and Tempered Risk Appetite Trends Send Crude Tumbling Crude Oil (LS Nymex) - $81.25 // -$1.44 // -1.74% Following the same path taken by equities and the euro, crude put in for a loss to end the week. In fact, the 1.7 percent decline was the biggest drop the market has seen since last Thursday. Now trading at a two week low, it is important to put the session’s performance into context. On a weekly basis, the commodity is down a modest 1.7 percent; and overall, we the oil is holding to the $83.50 to $80.50 congestion zone that has developed over the past two weeks. This meandering pattern was encouraged this past week by a tempered sense of risk appetite and a li...
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| Hourly Action In Gold From Trader Dan Posted: 15 Oct 2010 08:02 PM PDT View the original post at jsmineset.com... October 15, 2010 10:24 AM Dear CIGAs, "Trick or Treat" – That sums up the much awaited speech from Fed Chairman Bernanke. Or perhaps Shakespeare can be slightly modified: "To ease or not to ease – that is NOT the question. Whether 'tis nobler to ease in large quantity immediately and suffer further insult to the Dollar as it bears the slings and arrows of the fickle Foreign exchange markets or take arms against that sea of troubles and by opposing them, slam the stock market into the sleep of death. To die, to sleep no more – yea, that is what will happen to me should I end the heartache of the weary economy and the thousand natural shocks that doth pursue it by depriving it of its life's sustenance. Ay, there's the rub. For who could bear the whips and scorns of time should I sit idly by in modest stillness and humility while the blast of war sounds against the prosperity of this kingdom. I will stiffen the sinews, summon up the bloo...
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| Posted: 15 Oct 2010 08:02 PM PDT View the original post at jsmineset.com... October 15, 2010 02:19 PM Jim Sinclair's Commentary Monty issues a warning, yet is bullish on copper and silver. Dear Jim, Mexico is in trouble and here is another data point. Respectfully yours, Monty Drug gangs threaten Mexican mining industry Thursday, October 14, 2010 By Mica Rosenberg MEXICO CITY | Thu Oct 14, 2010 7:52pm EDT MEXICO CITY (Reuters) – Mining firms have shuttered a handful of exploration projects in remote areas of Mexico as the industry grapples with threats from drug cartels and rising security costs, Mexico’s mining chamber said on Thursday. Cartels are threatening mining operations not just in the violent corridor along the U.S.-Mexico border but in isolated, mountainous regions in other parts of Mexico, where traffickers grow marijuana and heroin poppies, the chamber said. Executives belonging to Mexico’s National Mining Chamber have reported cases of drug traffickers extorting...
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| Posted: 15 Oct 2010 08:02 PM PDT View the original post at jsmineset.com... October 15, 2010 02:21 PM Jim Sinclair's Commentary The truth comes at a modest fee that gets you a subscription to http://www.shadowstats.com/ - Dollar Debasement Fears Mount - September Consumer Inflation: 1.1% (CPI-U), 8.5% (SGS) - Retail Sales Gain Reflected Seasonal Distortions from Year-Ago Clunkers More Than It Did a Happier Consumer - August Trade Deficit Took 0.5% from Third-Quarter GDP www.ShadowStats.com Jim Sinclair's Commentary New York State pension funds are crying ENOUGH! International investment firms shocked. For 30 years they have been sticking pension funds with crap and now someone has the nerve to say NO MORE! Jim Sinclair's Commentary QE to infinity is not a discussion, it is all that the Fed has. Failure to perform will open the darkest of black holes in Western world economies immediately. That will hasten the destruction of the dollar and all Western currencies in terms ...
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| Bernanke Can?t Fool Everyone All The Time Posted: 15 Oct 2010 08:02 PM PDT View the original post at jsmineset.com... October 15, 2010 02:29 PM Dear CIGAs, The Federal Reserve heard so much criticism of their QE that politically it was better to low profile it today. We were told of the many secret new ways the Fed has to drain liquidity, but none were offered as an example. This drain talk is as much prattle as it was when it took center stage six months ago. The Fed does not have a choice. It is economic death immediately, or give the OTC disaster can another kick down the road to perdition. The disgraced top callers of the gold price, who once again are calling for a top in gold after having been proven wrong time and time again, are equally wrong today as they have been since 2002. Today Bernanke even defined MOPE as he defined the functional use of communication. Bernanke’s speech today was pure MOPE. Do not be confused by semantic nonsense. Gold will trade at $1650 and above. The following article makes its point in the final comment. Fed...
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| Posted: 15 Oct 2010 08:02 PM PDT The 5 min. Forecast October 15, 2010 12:13 PM by Addison Wiggin [LIST] [*] Despite it all, why now is the best time to invest since the Great Depression… plus, where to place your bets… [*] Six breakthrough opportunities: Like investing in radio or refrigerators in the ‘30s [*] Piling on: another $40,000 for every household in Chicago… the crisis in municipal pensions [*] Gold stocks reach new highs… James Turk on how far they can go from here [*] Pity the fool who follows Mr. T’s latest advice on gold [/LIST] We begin this episode of The 5 cautiously anticipating some of the greatest moneymaking opportunities to present themselves in five generations. Not because quantitative easing will send gold to the moon, or because Peak Oil will send energy stocks to unheard-of levels. No, we’re talking about something that will make money -- indeed, launch whole new economies -- in spite of the macroeconomic calamities of which we&...
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| Reaching for Yield in the Bond Market Posted: 15 Oct 2010 08:02 PM PDT My wife is on the intercom and asking about whether or not I am coming out of the cocoon-like safety of the Mogambo Screaming Heebie-Jeebies Bunker (MSHJB) to have lunch, or maybe get a shower, or say hello to her and the kids, or pick up my mail, and maybe just stop acting So Damn Weird (SDW) for a pleasant change. I explode into the intercom "So Damned Weird (SDW)? You think I'm acting So Damned Weird (SDW)?" I scream back. "Everything everywhere is So Damn Weird (SDW), so how is it freaking possible to NOT be So Damn Weird (SDW), SDW, SDW, SDW?" My voice rising, I continue, "For instance, the bond market has become such an insane bubble that bond buyers have bid prices up so high (audience yells out 'How high?') that the yield is less than 2%!" I could tell by the confused silence at the other end of the Bunker To Outside World (BTOW) intercom that she needed some explanation. So I helpfully went on, "Bond buyers are making a taxable Two Miserable Percent (TMP), while inflation, ...
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| How to Hedge Yourself from the Coming Fed Disaster Posted: 15 Oct 2010 08:02 PM PDT By Porter Stansberry & Braden Copeland Friday, October 15, 2010 Most investors know the Federal Reserve's "easy money" policy is creating an enormous amount of new credit and new money. And most people know this policy has created an explosion in the prices of gold and silver. But most people have no idea where the bulk of the Fed's new money is actually finding its home: in Asia. This has enormous implications for you as an investor, which I'll show you in a moment… According to Bill Gross, who manages the world's largest pile of fixed-income assets at PIMCO, the Federal Reserve is going to resume large-scale quantitative easing at the rate of $100 billion per month. News of this plan has been leaking out for the last two months following an important speech Bernanke gave in Jackson Hole, Wyoming this summer. He said, essentially, we needed a lot more inflation. If the Fed does resume quantitative easing at the $100 billion-per-month range, it would b...
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| Posted: 15 Oct 2010 08:02 PM PDT Adam Hamilton October 15, 2010 2781 Words Gold’s relentless climb to new record highs is driving a renaissance of investor interest in junior gold stocks. This fascinating subsector amplifies investing’s usual risk-reward equation to breathtaking extremes. While the great majority of junior golds will end up worthless, the few that strike it big enjoy some of the largest gains ever seen in the financial markets. We’re talking 100x+ returns! There are many hundreds of these small explorers scouring the planet today for the next great gold deposit. Other than a little fraction with small-scale mining operations, junior golds have no internally-generated cashflows. Their business model is so bleak ban...
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| Kootenay Gold – The Best of Both Worlds Posted: 15 Oct 2010 08:02 PM PDT Richard (Rick) Mills Ahead of the Herd As a general rule, the most successful man in life is the man who has the best information Without internally generated positive cash flow our juniors are money-eating machines constantly having to go to the market to raise capital through equity offerings. However there are companies doing things a little different than the mainstream junior - they’re called “Project Generators.” Project generators, after finding and securing a property, do the initial mapping, sampling and maybe a small drill program. Upon making a discovery, basically finding something of interest, they turn it over to a joint venture partner who puts up the money and or its own shares to earn into the property while investigating the discovery. A property ownership dilution business model is not as well liked as the much more common share dilution (through equity offerings known as private placements) model. Yes the project generator ...
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| Eric Coffin: Yukon! I've Hit Gold Posted: 15 Oct 2010 08:02 PM PDT Source: Brian Sylvester of The Gold Report 10/15/2010 The Yukon is going to be huge next year, according to Hard Rock Analyst Writer Eric Coffin. "If you're playing development-stage gold juniors, you should be excited about the Yukon." He certainly is. "It's going to be just ridiculous," he says, "there'll be 100 companies up there." In this exclusive interview with The Gold Report, Eric reveals some promising gold juniors in the camp and some others in Latin America. The Gold Report: Eric, everyone is buzzing about gold's September run to more than $1,300 an ounce. Is this a seasonal uptick, or are we finally seeing the much-anticipated flight of investors into the safe haven of precious metals? Eric Coffin: It's probably both. Historically, September has been a good month for gold. But I think its recent performance is just a continuation of a 10-year trend. Dave and I have never been in the gold-at-$5,000 camp. We're quite happy to see it at +$1,300/oz. I won't b...
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| Wild Speculation Lies Ahead in Gold: Richard Russell Posted: 15 Oct 2010 08:02 PM PDT Yesterday in Gold and Silver Virtually all of the positive action in gold on Thursday came on the back of a 70 basis point drop in the U.S. dollar that started the moment that trading began in the Far East... which was 6:00 p.m. New York time on Wednesday night. The dollar dive ended at 8:00 a.m. in London... and so did the rally in both precious metals. From that point, gold began a long slide... and was down about $17 from its London peak by 9:30 a.m. in New York. Gold didn't do a whole heck of a lot during the rest of the Comex trading session... but shortly after 1:00 p.m. Eastern time, gold began a rally that only ended at the close of electronic trading at 5:15 p.m. Eastern time. Gold ended the Thursday trading session up $9.30 at $1,381.20 spot. Silver followed a very similar path... but the sharp rise to its high price of the day at the 8:00 a.m. London open stands out like sore thumb. From there, the silver price took the same path as gold's.....
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| LGMR: Gold & Silver Spike on Bernanke Speech, Hot Money Flows Posted: 15 Oct 2010 08:02 PM PDT London Gold Market Report from Adrian Ash BullionVault 09:50 ET, Fri 15 Oct. Gold & Silver Spike on Bernanke Speech as "Hot Money" Flows Force "Competitive Devaluation" THE PRICE OF BOTH gold and silver bullion spiked sharply at the start of New York dealing on Friday, briefly nearing yesterday's record levels as Federal Reserve chairman Ben Bernanke spoke on monetary policy, and the US Dollar sank. Failing to detail the size of quantitative easing now due – and admitting that policy-makers lack "experience" of its economic effects – Bernanke confirmed that the Fed is "prepared to provide additional accommodation if needed to support the economic recovery," in a speech on Boston. Gold prices leapt to $1384 and silver touched $24.80 per ounce as the US Dollar fell towards new 2010 lows vs. the Euro. The Dollar also re-touched Thursday's new 15-year lows to the Yen, but then rallied hard – alongside European equities and US stock futures – as gold and silver retreat...
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| 10 Rules Before Investing In Precious Metals or Rare Coins Posted: 15 Oct 2010 08:02 PM PDT [CENTER][COLOR=black][SIZE=3][FONT=Times New Roman]For 2009 Ponder These 10 Rules [/CENTER] [CENTER]Before Investing In Precious Metals or Rare Coins [/CENTER] Hello again, this is Richard Schwary (Gold coins, silver bullion, gold bullion, silver coins and PCGS Certified Coins at www.golddealer.com | America's Coin Dealer) and these ideas will save you time and money. If you have questions or would like to voice your own views my email is [EMAIL="RSchwary@aol.com"]RSchwary@aol.com[/EMAIL]. Thanks for reading and good luck investing. 1. Throughout most of 2008 gold has moved sideways between roughly $700 and $1000 an ounce. This almost predictable pattern should be seen as yet another chance to buy those bullion coins or bars needed to protect your financial ship in a stormy sea. I believe we are in the middle of great wealth redistribution in the United States, and with money supply figures exploding the folks who own gold and silver bullion will be in...
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| Gold Advances to a New Record High ahead of Brenanke while Oil Steadies Posted: 15 Oct 2010 08:02 PM PDT courtesy of DailyFX.com October 14, 2010 04:16 PM Following the previous session’s strong move, speculative assets like oil would find themselves exposed to a relatively quiet fundamental session Thursday. The same conditions wouldn’t apply to gold, however, as the stimulus train rolls ahead. North American Commodity Update Commodities - Energy Curbed Risk Appetite and Resistance to Stimulus Expansion Quiets Oil’s Rally Crude Oil (LS Nymex) - $82.69 // -$0.32 // -0.39% The steady buying momentum behind US oil that built up consistently through Wednesday’s active trading session wouldn’t carry over to the following day. Despite the carry through that bulls were able to sustain through the Asian session (thanks in part to the encouraging performance to equities during that period), an aggressive reversal was triggered when European and early US traders came online. With this intraday reversal, the commodity would fall short of setting a fi...
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| Crude Oil Falls on Equity Profit Taking, Gold Surges on Huge Increase in ETF Holdings Posted: 15 Oct 2010 08:02 PM PDT courtesy of DailyFX.com October 14, 2010 10:51 PM Crude oil was dragged lower by profit taking in equity markets, but a bullish inventory report limited losses. Gold hit a new all-time high after ETF holdings surged, but silver is the real story. Commodities – Energy Crude Oil Falls on Equity Profit Taking Crude Oil (WTI) - $82.81 // $0.12 // 0.15% Commentary: A bullish inventory report wasn’t enough to buoy crude oil prices on a day in which U.S. equity markets fell notably. Nevertheless, the commodity was able to hold much of recent gains, only declining $0.32, or 0.39%, in the session. The government reported that crude oil inventories decreased by 0.4 million barrels, gasoline inventories decreased by 1.8 million barrels, distillate inventories decreased by 0.3 million barrels, and total petroleum inventories decreased by 4.7 million barrels. These figures were more bullish than expected and more bullish than the 5-year average. Check out our Crude Oil Invent...
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| U.S. Dollar In A Race To The Bottom With Other Currencies And The Winner Will Be Gold Posted: 15 Oct 2010 07:29 PM PDT [What we are experiencing these days] is a race to the bottom among global currencies. Whenever any nation wants to gain a little bit more of an edge in global trade they push the value of their currency down just a little bit more so that the products and services produced by that nation will be less expensive for other nations [and, as such,] other nations will buy more of those products and services. When exports go up, employment goes up and more wealth flows into the country. Who is the winner in all of this? Well, that is easy. Gold, silver and other precious metals will continue to be the winners as fiat currencies all over the globe continue to decline in value. Words: 1430
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| Casey Gold Summit Offers Investment Nuggets Posted: 15 Oct 2010 07:28 PM PDT Source: Diane Fraser of The Gold Report Carlsbad is several hundred miles south of Sutter's Mill, but the experts and investors who gathered for Casey Research's recent Gold Summit were just as enthusiastic about the precious metal as the prospectors who headed into the hills back [...]
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| Will the Gold, Silver, Oil and other markets tolerate a $1.50 - $1.70 Dollar? Posted: 15 Oct 2010 07:22 PM PDT
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| Fed Wants to Hoodwink Public, Only Fools Itself: Caroline Baum Posted: 15 Oct 2010 07:03 PM PDT Oct. 15 (Bloomberg) -- If I were a central banker, I would be afraid. If I were a central banker getting ready to embark on another round of quantitative easing, I would be very afraid. Here's why. Central bankers in the U.S. are being bombarded with market-based signals suggesting their fears of deflation, or falling economy-wide prices, may be misplaced. Gold prices continue to set new highs. The U.S. dollar, the global reserve currency, keeps sinking amid expectations the Federal Reserve will dilute the existing stock starting at its Nov. 2 to 3 meeting.
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| OPEC Members Seek $100 Oil to Counter Dollar Posted: 15 Oct 2010 06:20 PM PDT Oct. 15 (Bloomberg) -- The 13 percent decline in the Dollar Index since June has led some OPEC members to call for oil to rise to $100 a barrel. The U.S. currency's weakness means the "real price" of oil is about $20 less than current levels,
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| Peter Schiff: "It's Scary How Clueless Bernanke Is" Posted: 15 Oct 2010 05:17 PM PDT As expected, Ben Bernanke provided a rational for more quantitative easing Friday, declaring: "Inflation is running at rates that are too low relative to the levels the [FOMC] judges to be most consistent with the Federal Reserve's dual mandate" of price stability and full employment. Predictably, Euro Pacific Capital president Peter Schiff wholeheartedly disagrees with that - and just about everything else Bernanke says. "It's scary how clueless Bernanke is," Schiff says, noting the dollar is at or near record lows vs. several major currencies and commodities from agriculture to zinc are soaring. "That is inflation," he says, dismissing this morning's tame CPI data as hedonically adjusted government fiction. "As money loses value prices are going to rise because you need more diminished dollars to buy goods and services." 
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 5% on the Week Posted: 15 Oct 2010 04:00 PM PDT Gold jumped up to $1385.20 at about 8:20AM EST before it fell to as low as $1362.45 at around 10:30, but it then climbed back higher into the close and ended with a loss of just 0.44%. Silver fell to as low as $24.06 by midmorning in New York before it also rallied back higher and ended with a loss of just 0.74%.
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| Posted: 15 Oct 2010 02:17 PM PDT
Al Capone en route to prison for tax evasion ~ So I get this info from a colleague on mine back in June 2010 in where they had it sent to them from a reader of their site ... First up, from my colleague... Sometimes this all becomes a bit too overwhelming, trying to unravel this whole foreclosure cataclysm. This is so far beyond the simple situation where a borrower borrows money from a bank and doesn’t pay… that bank is clearly entitled to their money back. I’m a fairly bright guy with a good education and a fair to ‘middlin grasp on complex legal issues… I just boil down way complex stuff to smaller parts and learn those complex issues piece by piece. The problem we face in foreclosures today is no-one has any idea who’s really owed money on these mortgages, who is entitled to collect payments on the mortgages, what government money was used to bail out mortgages. Sophisticated attorneys with years of complex litigation and legal experience are perplexed by the inability of Plaintiffs to answer the most basic questions about litigation. Experienced circuit court judges with decades of trial court, evidentiary and complex litigation experience have started to ask real questions about the millions of dollars in foreclosure judgments they’re signing every day in their courtrooms to entities that they cannot identify. Federal judges with hundreds of years of experience are really starting to dig into documents filed and representations made by the parties that appear before them… There are real questions being raised in bankruptcy courts and even bigger questions about fraud and collusion and federal crimes at the highest levels of American businesses. Thrown into all these questions are some thought provoking comments and research from a subscriber to this blog, like I said, it’s a bit beyond me now, but consider his words… From their reader... The best way to prove this mess all got dissolved is to go to the IRS.gov website and look for the publication # 938 for 2006 through the present. This is where you will see that the gain on sale reporting etc all stopped as the securitization machine was turned off temporarily in late 2007. The trusts were all named and reporting until the end of 07 then 08 is missing?????? They restart the reporting in 09 but it is down to only Ginnie/Freddie/Fannie/JPM/Citi and random trusts that have been created. The government absolutely knows what happened yet seems to help cover this up thinking we are too dumb to catch it. 2009 reported in 2010 2008? is missing and reverts to the 2009 file?? Don’t believe me. try it. 2007 reported in 2008 4closureFraud Note: By taking a look at the IRS.gov index of /pub/irs-prior/ , which is completely open, http://www.irs.gov/pub/irs-prior/ it lists all of the #p938 publications from 1996 - 2009 (control f p938 to jump directly) and there is no 2008 to be found in the entire directory... Hmmm...
Back to my colleague's reader... They seriously think we are that stupid. What are they hiding from us? Maybe that the banks have committed billions upon billions in tax evasion. Follow what is happening in non-judicial states and you will see the arrogance. They actually show us the blank note endorsement from the original lender yet no recording of the interest through the depositor to the trust. Lack of standing? Then when they are finished stealing the house they sell the loan from the unlawful foreclosing party (trust) that had no standing to F/C back to the trust through a POA to the servicer and effectively cover their tracks that the loan was never in the trust, they still stole the investors money, and they still claimed the tax exemptions under REMIC. All while the Govt and IRS watch. Look at the WAMU BK. They were found to have a 10.3 Billion dollar tax claim filed against them that was reduced to 33M yet Chase got to walk away with a 300 Billion dollar bank 200M in mortgages for 1.9Billion. The loans were shown to have been written down to $0 yet they still want to collect? Along with the Pub 938 you can review Pub 550 that explains the tax exemptions etc for the REMIC trusts. No assignments were done as required, no “true and absolute sales under FASB 140″ were ever perfected, No standing has ever been established for most or all of the securitization trusts. This is the biggest RICO case on earth. Oh, and maybe we should review who funded LPS… JPM/BOA/Wachovia when they split off of FIS in 2008. 4closureFraud here... Some pretty deep stuff... I have not been able to figure this all out since June even after asking all my contacts to help me out. So up until now, I have come up with a big fat Zero on this. So, since I ended up at zero, why not turn it over to the Zero Hedge readers to help me figure this out... I may be totally off on this, and it may be a "nothing burger", but I think there is something here that is very significant. Looks very suspicious to me, but again, this is way above my area of expertise. If this is a "nothing burger" , and I am "over reacting", I am ready to take my lashings. But if it isnt??? Thoughts? ~ 4closureFraud.orgAnd as always, check out 4closureFraud.org for daily updates on the Foreclosure Fraud (global) crisis that affects everyone...
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| Is MetLife's Foreclosure Process Review By Moody's A Harbinger Of The Excrement Show To Come? Posted: 15 Oct 2010 01:47 PM PDT
As observant readers will recall, the one proximal catalyst that brought down the financial system last time around was something as innocuous as a rating agency downgrade of AIG, which precipitated a waterfall of margin calls and liquidity deficiencies, resulting in the near collapse of capitalism. This in itself was not surprising: it is always the least expected events (i.e., Moody's performing its function honestly and ethically) that tend to have the most adverse impact in a precarious scenario. Which is why when Moody's put MetLife's Home Loan Servicer ratings on downgrade watch it resulted in a chorus of fear and incredulity: after all Wall Street had seen this scenario all too recently. One person whose phone line off the hook was Morgan Stanley's Nigel Dally who sent out a letter to clients today trying to calm everyone down that this was not the apocalyptic event many are fearing it could be. True, as Nigel pointed out, MetLife only has $1.5 billion in mortgages serviced for others per SNL (whose data we presented yesterday when discussing exposure at JPM, WFC and BofA), but the fact that this is sufficient for Moody's to look at the company vis-a-vis its foreclosure practices should set red light everywhere. After all, in all the talk of gloom and doom, has anyone actually done any work to find out just what a home loan servicer downgrade means for the system? We didn't think so. And while MetLife is just $1.5 billion, recall that the Big Three share a quarter of a trillion among them. And yes, they are also about to be downgraded. Here is Morgan Stanley's unsuccessful attempt to make uber-nervous investor feel safe. Alas, it can only get worse from here, and what's worst, with consequences that nobody can really anticipate (ref: AIG).
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| Richard Russell - Wild Speculation in Gold Lies Ahead Posted: 15 Oct 2010 01:08 PM PDT Richard Russell - Wild Speculation in Gold Lies Ahead With gold hitting new all-time highs, in his latest commentary, the Godfather of newsletter writers Richard Russell stated, "The negative comments about gold will only serve to make the gold bull market that much stronger. In this business, there is nothing more powerful than a primary bull market that has been denigrated, spat at, and held back for years." October 15, 2010 "I learned from George Schaefer that big bull markets almost always end with a speculative explosion. We had not seen that kind of action in the bull market that started in June, 1949. I was convinced that a speculative third phase of the bull market lay somewhere ahead. For that reason I was convinced that the bull market was not over." "Today I am taking the same stand regarding the gold bull market. The gold bull market will not end with a fizzle and a whimper. It will end with intense speculation and widespread interest from the funds and the public. We haven't seen that kind of activity yet, but I'm convinced that a period of wild speculation in gold lies somewhere ahead." "This is why I continue to beg my subscribers to load up with gold. As I see it, we are nearing a period of intense speculation that will be beyond anything seen before by the last three generations of Americans. Ironically, more money (will be) made in the final explosion in gold than was made during the first two phases combined." "Great bull market are seen maybe once or twice in a lifetime. The current "stealth" gold bull market has sneaked up on most Americans. The very phrase, "gold bull market" is sneered at by most analysts today. In fact, most of the comments on gold today come in the form of warnings; "Gold is too high." "Gold is in a bubble." "Gold will sink back below 1000." "Gold is a fool's play." "Nonsense. Gold is moving ever-closer to it's climactic speculative third phase. The negative comments about gold will only serve to make the gold bull market that much stronger. In this business, there is nothing more powerful than a primary bull market that has been denigrated, spat at, and held back for years." As long as we continue to have the mainstream media negative on gold, it will keep adding fuel to this bull market. Eric King KingWorldNews.com http://kingworldnews.com/kingworldne...ies_Ahead.html
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| Posted: 15 Oct 2010 01:03 PM PDT 
So is it a good thing for an unelected, virtually unaccountable private central bank called the Federal Reserve to have more power over the U.S. economy than the president of the United States? Of course not. But that is the way our system works. So what did Bernanke say during his speech in Boston that was so earth shattering? Well, you can read a full transcript of what Bernanke said right here. The following are a few key excerpts from Bernanke's remarks.... *"Although output growth should be somewhat stronger in 2011 than it has been recently, growth next year seems unlikely to be much above its longer-term trend. If so, then net job creation may not exceed by much the increase in the size of the labor force, implying that the unemployment rate will decline only slowly. That prospect is of central concern to economic policymakers, because high rates of unemployment--especially longer-term unemployment--impose a very heavy burden on the unemployed and their families. More broadly, prolonged high unemployment would pose a risk to consumer spending and hence to the sustainability of the recovery." Clearly, Bernanke feels as though unemployment is way, way too high and that lowering unemployment is now the number one policy priority of the Federal Reserve. So how will this be accomplished? After all, interest rates are already kissing the floor and that hasn't brought the U.S. economy back to life. Well, as most financial analysts are anticipating, the Fed could launch a substantial new round of quantitative easing. But wouldn't that cause a rise in the inflation rate? Well according to Bernanke's speech, the U.S. economy is supposed to have a certain amount of inflation.... *"Similarly, the mandate-consistent inflation rate--the inflation rate that best promotes our dual objectives in the long run--is not necessarily zero; indeed, Committee participants have generally judged that a modestly positive inflation rate over the longer run is most consistent with the dual mandate." Do you understand what Bernanke is saying there? He is actually saying that the goal of the Federal Reserve is not to have a zero inflation rate. Rather, he says that we should expect to always have at least some inflation and that this is normal. In fact, in his speech Bernanke said that inflation in the United States is currently too low.... *"...inflation is running at rates that are too low relative to the levels that the Committee judges to be most consistent with the Federal Reserve's dual mandate in the longer run." Inflation is too low? Is he joking? No, sadly he is not. Instead, he seems ready to break out the money hoses and start showering dollars from every street corner.... *"Given the Committee's objectives, there would appear--all else being equal--to be a case for further action." "Further action" being code words for the "quantitative easing" that we have all been anticipating. The funny thing is that in the nearly 4,000 word Bernanke speech there was not a single word about the value of the U.S. dollar. This month the U.S. dollar has been plummeting like a rock, but apparently it is not an important consideration for Bernanke. In essence, Bernanke's message is that the focus is on trying to "fix" the U.S. economy and if it is necessary to jack up the rate of inflation and to radically devalue the U.S. dollar then that is what we are going to do. Bernanke also did not mention the foreclosure fraud crisis which threatens to throw the entire U.S. mortgage industry into a state of absolute turmoil. But the rest of the financial world is definitely starting to take notice of this crisis. All of this uncertainty is already starting to take a huge toll on U.S. bank stocks. Several of the largest U.S. banks have seen their stock prices significantly decline in recent days. The truth is that this could be the biggest challenge for big U.S. banks since the 2007 financial collapse. Just consider the following very troubling signs.... *JPMorgan announced on Wednesday that it has boosted its reserves by a billion dollars in order to cover faulty mortgages that it was obligated to repurchase from Fannie Mae, Freddie Mac and private insurers. In all, JPMorgan has set aside approximately 3 billion dollars for potential mortgage repurchases. *But a few billion dollars may not be nearly enough for many of these big banks. According to an estimate by Branch Hill Capital, Bank of America could be forced to repurchase up to $74 billion in mortgages. *The losses from this crisis could be absolutely staggering. Analyst Dick Bove is projecting that U.S. banks could lose a combined 80 billion dollars as a result of this foreclosure fraud crisis. The truth is that it would be hard to understate just how much of a financial mess this foreclosure fraud crisis could possibly become. A recent article by Nomi Prins did a great job of discussing some of the potential implications of this crisis.... If foreclosed homes couldn't be sold because of fraudulent paperwork or had to wait for more detailed inspections, you can imagine how difficult selling assets stuffed with faulty loans might be. If it's tough to find a title for a foreclosed home, think how tough it is to back the related loan out of a pyramid of securities sitting on top of it. See, the loan that might be analyzed in a foreclosure situation could be part of a chain connecting the underlying home to 20 or 50 different securitized assets, all depending on it for either the interest payments the loan was supposed to provide, or the value of the foreclosure property if those payments stopped (in Wall Street speak, the "recovery value"). If a foreclosed property isn't selling, it's not recovering any money back to any asset waiting for it. Think what that can do to the value of toxic assets living at the Fed and the Treasury Department. This foreclosure fraud crisis is extremely complicated, but the reality is that this could be the thing that breaks the back of the U.S. financial system. For much more on the specifics of this crisis, please check out the following articles that I have previously posted.... #3 The Real Horror Story: The U.S. Economic Meltdown The truth is that the U.S. economy is headed for extreme danger and what Bernanke wants to do is douse it with gasoline and light it on fire. Once the Federal Reserve starts down the road of trying to "stimulate inflation" in order to get the U.S. economy going, it is going to be really hard to turn back around again. But the truth is that this is what the U.S. Federal Reserve has always done. They have always destroyed the value of the U.S. dollar. The U.S. dollar has lost over 95 percent of its value since the Federal Reserve was created in 1913, and now Bernanke says that we need to actually accelerate the pace of the destruction of the dollar in order to "help" the economy. In the end, this whole thing is going to fall apart. In the end, all of the juggling and fancy financial moves by the Fed are going to fail. The U.S. financial system is a pyramid of fraud built on a mountain of debt. By definition it is unsustainable. At some point it is going to dramatically collapse. The only real question left to answer is when it will happen.
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| Stab the Beast with a Silver Dagger! Posted: 15 Oct 2010 12:59 PM PDT For the last year I have been engaged in the Silver-Dollar Carry-Trade. I borrowed fiat currency (at a low 5% fixed interest rate) and bought Silver which I thought would go up faster than 5%. Carry-Trade is what the world did to the Yen when the Japanese lowered interest rates to zero in the nineties. It works well when interest rates are artificially low. The Fed (Beast) has lowered interest rates on dollars to zero which punishes Dollar savers and rewards Dollar debtors. Oh yeah Fed? Well two can play at that game! In essence I shorted (sold) a bond and went long (bought) a commodity. I have been called a gambler and a fool for doing this. But the truth is that everyone who saves Purchasing-Power (PP) is a gambler, and there is no such thing as "safe" or "risk-free". There are only 5 ways to save PP: 1. Dollars and other Fiat Currencies (which always trend down in PP) 2. Bonds (which pay a few percent better but come with default risk) 3. Stocks (which pay better than Bonds but are riskier) 4. Real Estate (location, location, location!) 5. Commodities (Silver is just one of many) Do you have any savings? Well, SHAME ON YOU FOR GAMBLING! What's that? You're not Gambling, you say? Well I say you ARE, and if you have chosen the Dollar to save PP, then you are the stupidest, riskiest, gambling fool there is! I have been accused of "buying on margin", "like a futures contract". Unlike people who buy futures, options, ETF's & certificates, I take delivery, so the banksters can't just print up a "we-owe-you-silver" ticket. I also can't get a margin call, unlike futures traders. There is a way to Fight-the-Fed with actions instead of words and to make money doing so. The Silver-Dollar Carry-Trade is a Silver Dagger in the heart of the blood-sucking vampires who rule over and enslave us. If many people began to stab the beast with silver daggers as I have done, the world would be a better place. Every time I hear "Fight the Fed!", I say "Stab the Beast!"
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| 'We're at risk of financial collapse': Ken Clarke's warning for Western economies Posted: 15 Oct 2010 12:42 PM PDT The West is in 'grave danger of financial collapse', Kenneth Clarke warned last night. We face 'quite the most dramatic' spending cuts in 'living memory', the former chancellor added as the Coalition prepares to unveil plans to rein in the unprecedented budget deficit left by Labour. 'I actually am one of those who believes, with a grave danger of financial collapse, we're not out of the woods in the Western world yet,' he said in the extraordinary address. 'There is an extremely serious financial crisis.'
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| U.S. is currency war's "tomb maker" -China economist Posted: 15 Oct 2010 12:40 PM PDT Oct 14 (Reuters) - The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday.
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| Jim Sinclair: The top callers in gold have been wrong for eight years Posted: 15 Oct 2010 12:15 PM PDT 8:10p ET Friday, October 15, 2010 Dear Friend of GATA and Gold: Gold trader and mining executive Jim Sinclair today told Eric King of King World News that the top callers in gold have been wrong for eight years and they're wrong again now. Right or wrong on a top now, some of the top callers indeed have been advising against buying gold for the last thousand dollars up -- and somehow they still get interviewed as experts by the mainstream financial news media. Well, they'll get it right someday -- if they're still young. Sinclair's remarks are headlined "Jim Sinclair -- The Top Callers Have Been Dead Wrong" and you can find them at King World News here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/15_J... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Resources Expects Positive Cash Flow from Blackdome, On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia. Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013." For complete information on Sona Resources Corp. please visit: www.SonaResources.com A Canadian gold opportunity ready for growth Join GATA here: The Silver Summit New Orleans Investment Conference * * * Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Resource Goes Into Production A commission appointed by Mongolia's Ministry of Mineral Resources and Energy has conducted the final permit inspection at Prophecy Resource Corp.'s Ulaan Ovoo mine site and has instructed the company to begin coal production. Prophecy Resource (TSX.V: PCY) has begun production of its first 10,000 tonnes of coal as a trial run of supply to be taken by rail to electric power stations in Darkhan and Erdenet, Mongolia's second and third largest cities after the capital, Ulaanbaatar. The company is the second-ever Canadian mining company to get a permit to mine in Mongolia and start production there. For the company's complete announcement, please visit: http://www.prophecyresource.com/news_2010_oct14.php
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