Gold World News Flash |
- Keiser Report: Episode 77
- Keiser Report: Episode 78
- Keiser Report: Episode 80
- Keiser Report: Episode 88
- Keiser Report: Episode 93
- Keiser Report: Episode 95
- Keiser Report: Episode 96
- Stimulus Is Effective Only Under Certain Circumstances
- Crude Oil Surges as Support Holds, Gold Falls Slightly in Lackluster Session
- Gold Seeker Closing Report: Gold and Silver Fall Slightly
- The Collapse of the Yen: The Party Has Started
- China and Russia start dropping the dollar in bilateral trade
- A comprehensive interview with Ted Butler on silver market manipulation
- The Gold Price Remains in a Bull Market That Will Keep Prices Rising Another 4 to 10 Years
- All major bull markets tend to move in three phases
- There Go Irish and Hungarian Pensions?
- Guest Post: R.I.P, Homo Economicus: On the End of Ubiquitous Poverty and the Beginning of Universal Abundance
- "QE2 & The Great Misdiagnosis"
- Holiday Squeeze on the Dollar, Gold and Stocks
- The SP 500, Gold, Oil, and the Banks
- The gold records and accounting procedures of the Bank for International Settlements, the central bank of the central banks, are ambiguous and confusing and seem to facilitate the double counting of central bank gold
- Doug Casey's Secret to Finding Winning Stocks
- The Trial of Gold, Revisited - November 24, 2010
- In The News Today
- SLV Adds Another 1,661,992 Troy Ounces of Silver
- Euro collapse winner Germany reports strong data
- Your Guide to the Next Triple-Digit Commodity Trend
- Gold Daily Chart
- The Day the Dollar Died
- Butler: The silver short position is much bigger than gold in every measurement, especially compared to world inventories. Silver’s relative short position is more than 100 times larger than gold’s
- WEDNESDAY Market Excerpts
- Buy Gold: It’s the Only Way to Combat Government Spending
- On the Destructive Part of Capitalism
- Consolidation Or Trend Reversal In The U.S Dollar and Gold?
- Unlike Gold - Stimulus Is Effective Only Under Certain Circumstances
- Totally Standard Hyperinflation
- Important Relationship Between U.S. Dollar And Gold Signals Trend Change
- Comex Total Open Interest In Silver Increased On Options Expiration Day
- QE2 and the Great Mis-Diagnosis
- Profiting from Information Overload
- Banks feel threatened by Bullion bulls
- Buy Gold: It’s the Only Way to Combat Government Spending
- Silver COT Analysis: Short Squeeze in the Making
- Gold: Nowhere Near a Top
| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week, Max Keiser and co-host Stacy Herbert look at emails from viewers on their "Peak America" moments and then check out the scandals of the Irish choice of being "good Europeans" or "bad Europeans", as a result of bankers offering only "bad banks"; while Iceland refuses to settle at any price. In the second half of the show, Max goes Down Under to talk to economist Steve Keen about the global debt collapse.
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| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week, Max Keiser and co-host Stacy Herbert look at the scandals of the "living" dead centenarians collecting pensions in Japan and of Iceland&os;s ex-premier defending his innocence against charges of "economic recklessness". In the second half of the show, Max goes to Detroit to talk global deflationary collapse with Nicole Foss of Automatic Earth.
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| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at the scandals of World War III ending before it even started, thanks to Goldman Sachs seeking to move into Iran; and taking on the bourse Abbie Hoffmann-style. In the second half of the show, Max goes to New York to talk to Joe Weisenthal from BusinessInsider.com to talk bedbugs, gold and pensioners.
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| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert discuss "all's fair in love and currency wars", but while the US and China battle it out, is it possible that the United States could seize the German gold reserves held at the New York Fed? In the second half of the show, Max talks to Peter Schiff about the dollar, gold and currency wars.
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| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines.This week Max Keiser and co-host Stacy Herbert look at the scandals of shameless Britain and Wall Street's cash cow. In the second half of the show, Max talks to David Morgan about the silver market.
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| Posted: 24 Nov 2010 07:52 PM PST Max Keiser's the man to sort out the scandal behind the financial news headlines.This week, Max and co-host Stacy Herbert look at the epic battle between debtors and creditors bringing out the kneepads, downgrades and last rites. In the second half of the show Max talks to investment adviser, Michael Krieger, about a gold standard in the hands of the people.
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| Posted: 24 Nov 2010 07:52 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at the call from Eric Cantona to withdraw money from the banks, and at the viral Crash JP Morgan Buy Silver campaign by Max Keiser. In the second half of the show, Max talks to Alex Jones about Google bombs, naked body scanners and Crash JP Morgan Buy Silver.
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| Stimulus Is Effective Only Under Certain Circumstances Posted: 24 Nov 2010 05:44 PM PST Przemyslaw Radomski submits: A recently published paper (.pdf) that studied the stimulus efforts in 44 countries showed some interesting findings. Ethan Ilzetzki of the London School of Economics and Enrique G. Mendoza and Carlos A. Vegh of the University of Maryland argued in their National Bureau of Economic Research paper that fiscal stimulus can be quite effective in low-debt countries with fixed exchange rates and closed economies. But, stimulus measures are generally not as effective in countries like the U.S., with high debt and floating exchange rates. The authors of the paper pointed to a series of specific circumstances that throw a wrench into the effectiveness of increasing public spending: How much of the stimulus money ends up flowing abroad? How do investors respond to fear of future interest rate increases? Complete Story »
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| Crude Oil Surges as Support Holds, Gold Falls Slightly in Lackluster Session Posted: 24 Nov 2010 05:15 PM PST courtesy of DailyFX.com November 24, 2010 07:51 PM U.S. markets are closed on Thursday, but financial markets will reopen for half a day on Friday. Commodities – Energy Crude Oil Surges as Support Holds Crude Oil (WTI) - $83.89 // $0.03 // 0.04% Commentary: Crude oil surged $2.61, or 3.21%, to settle at $83.86 on Wednesday. Early in the session crude oil rose modestly as U.S. equity markets advanced on the back of a much better-than-expected reading on initial jobless claims. At 407K, weekly claims hit the lowest level in two years. This obviously bodes well for the U.S. labor market and the world’s largest economy as a whole. Later, after the Department of Energy released its report on petroleum inventories, crude began to move even higher before surging near the latter half of the trading session. A rather bearish API report released on Tuesday had traders expecting a similarly bearish report from the government, but those expectations proved wrong, as the DO...
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| Gold Seeker Closing Report: Gold and Silver Fall Slightly Posted: 24 Nov 2010 04:00 PM PST Gold rose $3.50 to as high as $1381.50 in Asia before it fell to see a loss of $8.66 at $1369.34 in midmorning New York trade, but it then bounced back higher into the close and ended with a loss of just 0.3%. Silver climbed to $27.673 and dropped to $27.145 before it also rallied back higher in late trade and ended with a loss of just 0.11%.
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| The Collapse of the Yen: The Party Has Started Posted: 24 Nov 2010 03:13 PM PST
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| China and Russia start dropping the dollar in bilateral trade Posted: 24 Nov 2010 01:56 PM PST Currency Settlement Benefits China-Russian Traders From Xinhua News Agency http://www.chinadaily.com.cn/china/2010-11/25/content_11604745.htm BEIJING -- China and Russia will expand local currency settlements for bilateral trade, Chinese Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced Tuesday, one day after the yuan started trading against Russian rouble on the Chinese interbank market. The announcement was made at the 15th regular meeting between the Chinese premier and Russian prime minister, marking the first step of the local currency settlement between the two countries -- the yuan's trading on the Russian forex market will follow in December. As China's energy needs would continue to grow quickly and with Russia's increasing appetite for manufactured goods, skipping the US dollar would benefit the burgeoning trade between the two countries, said Zhang Junsheng, director of Information Center with China National Institute of WTO affiliated to the University of International Business and Economics. ... Dispatch continues below ... ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php Zhang said direct trade between the countries began long before at China's border goods distributing centers. Local traders had largely accepted the Chinese yuan for bilateral trades because of their confidence in its stability and China's strong economy. It was the first time China has ever officially cooperated with a big power on local currency settlement. Yao Zhizhong, research fellow at the Chinese Academy of Social Sciences' World Economy and Politics Institute, said the move would immediately benefit local enterprises in the two countries. "Without exchange rate loss, they will see large reductions in trade costs, which will help China and Russia trade get back on track" to the pre-crisis level, he said. But there are concerns about China's ambitions to make the yuan into a global currency and the dollar's position. "The dollar's position in the international monetary system is too secure to rock," Zhang said. According to Yao, the recent moves by China and Russia sent signals. One was that countries have begun to seek new channels to avoid domestic assets' being devalued by outside risks, as the dollar-dominated international monetary settlement model exposed a number of problems during the 2008 financial crisis. Meanwhile, it also signaled that emerging markets and countries were working closer and expected more mutual benefits while gradually steering away from cooperating with developed economies. "However, the impact on the dollar is very small. How big a ripple can be made by a pebble in a large pool?" Yao said, adding that though China was the world's second largest economy, its economy was too fragile and its ambition for its currency too great. China started to allow the yuan to trade against the Russian rouble at 4.671 from Monday and will soon see the yuan trade against the rouble in Russia in December. The rouble is the seventh currency traded on China's Foreign Exchange Trade System after the introduction of the US and Hong Kong dollars, the euro, yen, British pound, and Malaysian ringgit. Bilateral trade between the two countries is estimated to reach above $50 billion by the end of 2010. 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 Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| A comprehensive interview with Ted Butler on silver market manipulation Posted: 24 Nov 2010 01:47 PM PST 9:45p ET Wednesday, November 24, 2010 Dear Friend of GATA and Gold (and Silver): James Cook, proprietor of Investment Rarities, has done a comprehensive interview about silver market manipulation with the dean of silver market analysts, Ted Butler, whose long campaign against the manipulation has begun to bear fruit. The interview has been posted at GoldSeek's companion site, SilverSeek, under the headline "Interview with Theodore Butler" and you can find it here: http://news.silverseek.com/SilverSeek/1290625106.php CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf 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:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php
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| The Gold Price Remains in a Bull Market That Will Keep Prices Rising Another 4 to 10 Years Posted: 24 Nov 2010 01:32 PM PST Gold Price Close Today : 1,376.00 Gold Price Close 19-Nov : 1,352.20 Change : 23.80 or 1.8% Silver Price Close Today : 2752.8 Silver Price Close 19-Nov : 2717.5 Change : 35.30 or 1.3% Gold Silver Ratio Today : 49.99 Gold Silver Ratio 19-Nov : 49.76 Change : 0.23 or 0.5% Silver Gold Ratio : 0.02001 Silver Gold Ratio 19-Nov : 0.02010 Change : -0.00009 or -0.5% Dow in Gold Dollars : $ 168.07 Dow in Gold Dollars 19-Nov : $ 171.27 Change : $ (3.21) or -1.9% Dow in Gold Ounces : 8.130 Dow in Gold Ounces 19-Nov : 8.285 Change : -0.16 or -1.9% Dow in Silver Ounces : 406.40 Dow in Silver Ounces 19-Nov : 412.27 Change : -5.88 or -1.4% Dow Industrial : 11,187.28 Dow Industrial 19-Nov : 11,203.55 Change : -16.27 or -0.1% S&P 500 : 1,198.36 S&P 500 19-Nov : 1,199.73 Change : -1.37 or -0.1% US Dollar Index : 79.790 US Dollar Index 19-Nov : 78.480 Change : 1.31 or 1.7% Platinum Price Close Today : 1,655.50 Platinum Price Close 19-Nov : 1,666.20 Change : -10.70 or -0.6% Palladium Price Close Today : 693.30 Palladium Price Close 19-Nov : 703.50 Change : -10.20 or -1.4% On Friday I will be in Nashville with Susan having her pacemaker implanted, so I am sending you the weekly early. (Please remember to pray for Susan, especially that the pacemaker will fix her fatigue.) The SILVER PRICE the last couple of days took a back seat while gold played catch-up. That's reflected in a slightly higher GOLD/SILVER RATIO. Yet the last five days haven't been a waste of time. Silver has moved sideways the past 3 days, forming a long narrow triangle. That tightlipped triangle tells us nothing of which direction silver will break out, only that it will. Silver must hold 2710c, and to resume rallying must close above 2790c. On Comex it closed at 2752.8, down 4.4c. The GOLD PRICE was boosted by the Red Korean artillery this week, but today merely moved sideways. Again, this is probably profit takers trimming and selling positions before the long holiday. Gold must hold $1,365 and above needs to break through the ceiling at $1,380. It fell $4.60 today to $1,376. SILVER and GOLD remain in a bull market that will keep prices rising another 4 to 10 years. Hold position, add to them when you have opportunity or money. Swappers get ready to trade silver for gold when the GOLD/SILVER RATIO reaches 47.50 to 1. We will swap back to silver in about 15 weeks after that. Amazing, isn't it, how standing back to look at the week makes everything plain! You can see that both silver and gold steadied and rose, even in the face of an aggressive, yapping dollar. Somebody painted the tape for stocks today or something, so that they appear to have lost little this week, when in fact they are trending down. White metals have lost their luster. US DOLLAR INDEX today climbed another 16.3 basis points to 79.790, solidifying and digging in above 79. Look for the buck to rally further, maybe to 82 but surely to 80.50. Euro slacked off today, closed 1.3325, and is hurrying earthward to meets its 200 DMA. Noteworthy here is that a rising dollar hath not crippled silver and gold, croakers and doomsayers notwithstanding. Bear that in mind. Every silver and gold investor must understand this one principle: it is monetary demand that drives silver and gold bull markets, and nothing else. Earth and sky, stars and sea are witnessing a global revulsion against all fiat currencies that will not end until they are all dead (I hope). STOCKS probably benefitted (as gold and silver lost) by people closing out positions before the long weekend. Stocks rose today about as much as they fell yesterday, but this is like buying watermelons in Mobile for 50 cents and trucking them up to Chicago and selling them for 25 cents. Sooner or later, you're going to need a bigger truck. Stay away from stocks as if they were a rabid skunk. Y'all enjoy your weekend, and give thanks for all God's blessings. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. 
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| All major bull markets tend to move in three phases Posted: 24 Nov 2010 01:13 PM PST Banks feel threatened by Bullion bulls
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| There Go Irish and Hungarian Pensions? Posted: 24 Nov 2010 12:51 PM PST
This the the ugly face of austerity. Cut everywhere, even public pensions and minimum wage. No wonder the Irish are pissed off and protesting. It's going to be a very rough four years ahead. Meanwhile, over in Hungary, Bloomberg reports that the government is is trying to force 3 million people now in private pension schemes back into the state system to help it meet strict budget targets.
Ever get the feeling that the world economy is hanging on by the skin of its teeth? Sure, it's only Ireland and Hungary, but it could easily shift to Portugal and worse still, Spain. All this tells me the Fed, the ECB and central bankers around the world are going to be busy printing money, counterbalancing some of the fiscal austerity taking place right now. Welcome to the future.
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| Posted: 24 Nov 2010 12:42 PM PST
Submitted by Free Radical R.I.P, Homo Economicus: On the End of Ubiquitous Poverty and the Beginning of Universal Abundance
There have of course been some “important” wars (though in truth they were, and remain, mere installments in a Long War that is by no means over). And there has of course been an “important” increase in population (the abreaction, for the most part, of the premodern underbrush that was uprooted amid the modern nation-state’s relentless campaign of unification, centralization, and consolidation). But let us give Keynes his due for imagining a time, in the not-too-distant future, when “the economic problem” – which is to say, the scarcity that impels all economic endeavor – will at long last have been solved, and universal abundance is at hand. For in daring to ask such a question in these increasingly depressionary times, we are at least given pause to ask, what if? Let us hazard an answer, then, doing so with no illusions about who the man was who dared draw such a conclusion, fully acknowledging that he was “a charming but power-driven statist Machiavelli, who embodied some of the most malevolent trends and institutions of the twentieth century.” And let us also do so by acknowledging that, eighty years later, we haven’t quite solved “the economic problem.” On the contrary, standardizing for population growth since 2005, the chart below would now indicate that fully 5.5 billion people live on less than ten dollars a day, while nearly a billion live on less than a dollar a day:
And while America’s poor appear to be quite well off by world standards, the fact is that they now represent nearly 14% of the U.S. population and that their numbers are skyrocketing, as the real unemployment rate surges toward 25%:
And not surprisingly, food stamp use is also skyrocketing:
Which is to say that Americans in general are an ugly mix of Stanley Johnsons so buried in debt that their toys have either already been taken from them or soon will be, their spending now in freefall, as it returns to its historically sustainable level (after, in all likelihood, overshooting it):
All of this happening as income inequality rises to extremes not seen since 1929:
But this was to be expected, after all, as the fascism inherent in the U.S. banking system reaches its apotheosis in the privatization of profits and socialization of losses, such profiteering, regardless of how it manifests itself, being standard operating proce-dure for the state. For while it “is almost universally considered an institution of social service,” the state is really nothing more than “the systematization of the predatory pro-cess over a given territory.” Why? Because
And simply put, these assaults – whether perpetrated by the U.S. fascialist state or variations upon this theme elsewhere around the world – have so impoverished the masses (why else would they be the masses?) that to contemplate an imminent solution to “the economic problem” admittedly seems absurd. Nonetheless, let us return to Keynes meditation thereon and, in particular, to his ob-servation that the historically “slow rate of progress, or lack of progress, was due to two reasons – to the remarkable absence of important technical improvements and to the failure of capital to accumulate.” For surely this is so, not just because the state’s “predatory process,” century after century, has so hampered capital accumulation as to stunt technological advance but because, in the last century, the state’s predations were fully systematized. And they were systematized in no small part because of Keynes’ absurd belief that “there are no intrinsic reasons for the scarcity of capital.” For just as there is not (there never was, nor will there ever be) any genuine capital accumulation that is not the result of savings – specifically, the saving of productive work of one form or another – so is there an inherent limit to capital. And as savings are nothing other than deferred consumption, it is clear that one cannot simultaneously consume that which one defers the consumption of, which is to say, one cannot have one’s cake and eat it too. This is precisely what Keynesianism attempts to do, however, facilitated by the attendant notion that money is not a good used as a medium exchange but simply a medium of exchange that, being irredeemable for any good, can accordingly be generated without limit. No wonder, then, that with both capital and money thus unhinged from economic reality, governments, in thrall to this alchemical fantasy – would systematically plunder their countries’ economies to the point of grinding them to a halt:
We have hell to pay for the sins of Keynesianism, in other words, the only question being what level of hell we descend to. And as this is largely a function of how long the journey takes, it is in turn a function of how “successful” governments’ extend and pretend policies are, meaning that the longer they delay the onset of economic reality, the deeper into hell we will descend. So again, under the circumstances – that is, given governments’ unremitting deter-mination to exacerbate the devastation that their Keynesian folly has already caused – how can we even contemplate a solution to “the economic problem,” much less postulate an imminent solution? And let us also assert that however beneficial this twofold security would be, such a monetary system would do much more than that. For “the typically modest increase in the quantity of money and volume of aggregate spending that takes place under a gold standard is accompanied by actually falling prices [author’s emphasis],” the greater production and supply of a good (or service) being a result of the greater efficiency that is expressed as Total productivity = Output quality and quantity / Input quality and quantity. That is to say, as input quality rises and input quantity falls, both output quality and quantity rise, resulting in the increased productivity that is reflected in the ability to offer the same product (or service) for less or, alternatively, a better product (or service) for the same price. And we have of course been experiencing this very phenomenon for many decades now, as the cost of computing power has fallen precipitously, the industry’s productivity increasing in accordance with what has come to be known as Moore’s Law:
The computer/electronics industry, in other words, has accomplished what the rest of the economy has not – i.e., an increase in productivity sufficient to offset government-induced inflation – the point being that in a truly sound-money economy, the gain in purchasing power would be across-the-board. That is, increased productivity would result, over time and in all sectors of the economy, in falling prices that would not be deflationary for the simple reason that they would not be the result of a monetary contraction, the difference between the two being all the difference:
What this means is not only that in a sound-money economy, prices would fall as productivity rises; it also means that in an increasingly computer-driven, nano-technological, sound-money economy – where computing power rises as machine size falls – productivity would grow exponentially, not only driving prices down at a similar rate but ultimately driving them to the vanishing point , which is to say, to zero.
Let’s say that by “extremely inexpensive,” we’re talking about the solar equivalent of dollar-a-gallon gasoline in 2030. We are then talking about a less than one-cent-gallon equivalent seven doublings later and less than a tenth of a cent three doublings after that, meaning that by 2050 the world’s energy needs would be met at virtually no cost. And simply put, to apply this same logic to the economy as a whole is to understand how “the economic problem” stands to be solved and how universal abundance therefore stands to be achieved. Not eons from now, not millennia, not centuries, but decades. While Keynes had only a faint notion of this hyper-productivity dynamic, we can at least give him his due for imagining that it wouldn’t be long before man would be “faced with his real, his permanent problem – how to use his freedom from pressing economic cares, how to occupy the leisure, which science and compound interest will have won for him, to live wisely and agreeably and well.” For that “science and compound interest” are nothing other than the exponential growth in technology that, aided and abetted by sound-money’s inherent price-reducing proclivity, do in fact have the power to free man “from pressing economic cares.” Unfortunately, however, we must also give Keynes his due for helping to postpone that day, his contempt for what he perceived as a barbarous relic leading to FDR’s confiscation of the people’s gold in 1933 and thus the end of what remained of the gold standard in the United States (the world gold standard ending in the Nixon Shock of 1971). For with no further restraint on the international banking cartel, the full fury of the stealth tax would be loosed upon the world and vast swaths of its people (most notably the American people) sold into debt slavery, the supreme irony being that “the eco-nomic problem” could well have already been solved, had a sound monetary system been in place during the near-century that the cartel’s foremost member has held sway. For the pseudo-productivity of much of the U.S. economy would have been genuinely so, as would the rest of the world’s. And the wars that could not have otherwise been funded would not otherwise have been fought, nor would our socially debilitating welfare programs have had the wherewithal to entrench themselves, the combined depredations of which have sapped incalculable amounts of humanity’s time, talent, energy, and imagina-tion. Even so, such is the ordinary man’s inborn ingenuity that despite those depreda-tions, he may yet find himself, in 2030, confronting the fact that “his real, his permanent problem” isn’t a problem at all. For what Keynes didn’t envision is that the ordinary man a century later, having decades before begun to internalize his machines, would be quite extraordinary, empowering himself to the point of not only boldly going where no man has gone before but of becoming what no man has ever been before. No longer having to struggle with the problems of tired old homo economicus, that is, a vibrant young homo abundus would be charting a course that would have been beyond his predecessor’s wild-est dreams. But as those dreams may yet be shattered, we will postpone further examination of homo abundus until we’ve taken full measure of “the predatory process,” beginning with my next submission: “The Twin Pillars of Civilization.”
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| "QE2 & The Great Misdiagnosis" Posted: 24 Nov 2010 12:22 PM PST
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| Holiday Squeeze on the Dollar, Gold and Stocks Posted: 24 Nov 2010 12:18 PM PST The past week and a half has been as choppy as it gets for the stocks market. Thankfully the herd mentality (fear & greed) stays the same. Understanding what others think and feel when involved in the market is one of the keys ... Read More...
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| The SP 500, Gold, Oil, and the Banks Posted: 24 Nov 2010 12:12 PM PST Right now, patience is a must. The day before Thanksgiving is synonymous for light volume as are most days preceding a holiday. Thanksgiving leads us into the holiday season which typically is characterized by low volume until after the New Year. Read More...
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| Posted: 24 Nov 2010 12:11 PM PST BIS gold records may facilitate double counting, study concludes
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| Doug Casey's Secret to Finding Winning Stocks Posted: 24 Nov 2010 12:04 PM PST I've been asked "What's the secret of finding winning gold, silver, and other natural resource stocks?" more times than I can even begin to count. And for over 20 years, my answer has remained pretty much the same: the Eight Ps. Read More...
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| The Trial of Gold, Revisited - November 24, 2010 Posted: 24 Nov 2010 11:13 AM PST The Trial of Gold, Revisited - Casey's Daily Dispatch [LIST] [*]Sign Up Now! [*]| [*]RSS Feed [*]| [*]Print this [*]| [*]Visit the Archives [*]| [*]Email to a Friend [*]| [*]Back to All Publications [/LIST] November 24, 2010 | [url]www.CaseyResearch.com[/url] Dear Reader, In today’s extended holiday edition, we revisit The Trial of Gold, an article I wrote on October 24, 2008, following a devastating correction in pretty much all the markets that was especially painful for gold investors: after the July 15, 2008 interim high of $986, the yellow metal had fallen over 27% to $712 at th...
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| Posted: 24 Nov 2010 11:13 AM PST View the original post at jsmineset.com... November 24, 2010 10:03 AM Thought For The Evening One thing and one thing only happened today. It is a landmark development where the US dollar is concerned. MOPE may well keep it from the attention of the Sheeple for some time. Those that matter know exactly what a milestone event this is. As a dollar reality now it will factor into price very soon. The move of Russia and China away from the dollar represent two huge economies that have made their decision to downgrade use of the US currency. All else today is noise and Management of Perspective Economics. Jim Sinclair’s Commentary You must give serious consideration to subscribing to John’s service. I would not be without it. The recently labelled good economic reports are constructs of statistical "adjustments." - GDP at 2.5% But "Equivalent" GDI at 1.6% - Weaker Durable Goods Orders Reflect Stressed Consumer - Home Sales Weakness Intensified by Syste...
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| SLV Adds Another 1,661,992 Troy Ounces of Silver Posted: 24 Nov 2010 11:09 AM PST The SLV ETF now sits with 350.2 million ounces of silver. I just hope it’s all there as stated.
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| Euro collapse winner Germany reports strong data Posted: 24 Nov 2010 11:01 AM PST Europe stocks rise after strong German data
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| Your Guide to the Next Triple-Digit Commodity Trend Posted: 24 Nov 2010 10:49 AM PST By Matt Badiali, editor, S&A Resource Report Wednesday, November 24, 2010 For the last 15 years, Russian missiles have powered one out of every 10 televisions in the United States. It was done through the "Megatons for Megawatts" program, a 15-year-old deal where Russian nuclear missiles became fuel for U.S. nuclear power plants. The thing is, that deal will expire in 2013. And that's one reason uranium will likely be the next big commodity story… like oil's 250% run from 2005 to 2008 and gold's 180% gain from 2006 to 2010. Investors who get in position now will see returns that good or better. Here's why… We can't produce enough today to meet everyone's needs. Mines supply only about 80% of worldwide uranium demand. So we have to turn to old, outdated Cold War weapons. Once they're gone, we're going to need a whole lot more mine production. That's going to take years to come online. As a result, we're likely to see a run on uranium supplies over th...
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| Posted: 24 Nov 2010 10:40 AM PST
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| Posted: 24 Nov 2010 10:30 AM PST Interview With Ted Butler
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| Posted: 24 Nov 2010 10:19 AM PST Gold price eases before Thanksgiving holiday The COMEX December gold futures contract closed down $4.60 Wednesday at $1373.00, trading between $1368.70 and $1381.00 November 24, p.m. excerpts: see full news, 24-hr newswire…
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| Buy Gold: It’s the Only Way to Combat Government Spending Posted: 24 Nov 2010 10:11 AM PST I tried to tell my boss that my unexplained absence was because I was so Completely Freaked Out (CFO) that I didn't know what to do all weekend except hide like a little crybaby coward in the Big, Beautiful Mogambo Bunker (BBMB) waiting for the inevitable collapse of the entire world order because of the massive over-creation of money by the foul Federal Reserve, where I whimpered and cried in fear because We're Freaking Doomed (WFD) and there is nothing – repeat, nothing! – that can be done. Naturally, I lost track of time, and so my absence is completely understandable and not my fault, but is, instead, the fault of the foul, filthy Federal Reserve creating so much money, for so long, that the US economy has been turned into a bloated, cancerous, twisted, bloated, government-centric grotesquerie that has almost destroyed us. I didn't tell her that through the mist of my bitter tears, though, I still managed to get a good laugh from the quixotic earnestness of Erskine Bowles and Ala...
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| On the Destructive Part of Capitalism Posted: 24 Nov 2010 10:00 AM PST When we are in a thoughtful mood, we try to get out of it as soon as possible. Nothing like thoughts to trouble a man's sleep. But sometimes a thought gets a grip on us and we can't get rid of it until we've meditated, prayed, and drunk a whole bottle of Bordeaux. Thus it was that we were puzzling over the strange events of the last few years. Why was Ireland so desperate to save its banks? Why did the US rush to keep Fannie and Freddie out of juvenile detention? Why put at risk the entire world financial system in order to try to get US employment down from 9% to 6%? People have a deep-seated fear of capitalism, we conclude. They will do almost anything to avoid it. Capitalism works by "creative destruction." They're happy with the creative part. But they can't bear the destruction. Ireland's biggest banks go broke? No way! America's leading housing lender in Chapter 7? We can't let that happen! They imagine that the "destructive" part of capitalism is a kind of disease or mechanical breakdown. If must be something that can be fixed, they conclude. And so they look for the cure…the fix…the solution. They must realize that adding paper money to a society that is already saturated in debt is a rather far-fetched solution. But what else can they do? They tried the elixirs and the home cures. Monetary stimulus didn't work. They tried fiscal stimulus, too. And even after the biggest stimulus of all time what have they got? Nearly 10% unemployment, falling house prices, little or no real (non-government) growth, falling incomes, and consumer price increases that are the lowest ever (if you take the figures at face value). What do they have left but "unconventional" methods. And so what if they don't really make any sense. You gotta do something, right? The simpleminded morons. "Corporate profits are the highest on record," says the latest news. Some investors take this as good news. But if profits are already the highest on record…how likely is it that they will go higher? The high margins probably result from the weakness in labor costs. Businesses were startled by the downturn of '07-'09. They cut costs (employees) quickly. So far, they've been reluctant to hire people back. That leaves the poor ex-employee without a job, but it also leaves the business with a decent bottom line. But after you've cut expenses, what do you do next? If you're going to add to your profits you have to count on growth in revenue. So, where are these extra sales coming from? Most likely, sales growth will be very slow…and profits will inevitably decline from these all-time highs. Falling profit margins will be another reason to get rid of stocks, so stock prices (and p/e ratios) will probably fall. Bill Bonner On the Destructive Part of Capitalism originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Consolidation Or Trend Reversal In The U.S Dollar and Gold? Posted: 24 Nov 2010 09:35 AM PST In a recent article, I wrote about important trend changes in the dollar and gold. An important inverse inter-market relationship is continuing between the U.S. Dollar and Gold. They have both broken trendlines simultaneously and are ... Read More...
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| Unlike Gold - Stimulus Is Effective Only Under Certain Circumstances Posted: 24 Nov 2010 09:12 AM PST A recently published paper that studied the stimulus efforts in 44 countries showed some interesting findings. Ethan Ilzetzki of the London School of Economics and Enrique G. Mendoza and Carlos A. Vegh of the University of Maryland argued ... Read More...
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| Totally Standard Hyperinflation Posted: 24 Nov 2010 08:53 AM PST Bullion Vault
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| Important Relationship Between U.S. Dollar And Gold Signals Trend Change Posted: 24 Nov 2010 08:32 AM PST In a recent article, I wrote about important trend changes in the dollar and gold. An important inverse inter-market relationship is continuing between the US dollar and gold. They have both broken trendlines simultaneously and are threatening a counter trend move. Other than yesterday's spike on a conflict in Korea, the dollar and gold have moved inversely and one appears to be bottoming while gold threatens to make a topping pattern.
Most traders use trendlines to determine when a trend changes, but many forget to follow that important line after the break has occurred. Smart traders have been monitoring the extended trendline on the dollar and gold this past week. It will be used to determine if this trend reversal is confirmed or if there is a chance of a technical failure. A failure occurs when price reverses back below the line. This creates an exhaustion point. It is crucial to monitor for these patterns. A failure did not occur in the dollar, as it has bounced higher on geopolitical fears in Korea, rising rates in China, and eurozone bailout concerns. This trend may continue higher, which may limit gold's upside targets. An extended line reverses its role of either support or resistance. In the case of the dollar, the downtrend line acted as resistance or a "ceiling" on the price. Last Tuesday, it was broken to the upside. After Tuesday, the US dollar has found support at the 50-day moving average and its new support, the extended trendline. It's important to know that traders have monitored this technical level closely and the extended trendline has proven to hold support. This signifies the dollar may have much further to run. This could also signify pressure on precious metals in relation to the US dollar as a trend has been broken and a break of October lows could confirm a potential head-and-shoulders top.
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| Comex Total Open Interest In Silver Increased On Options Expiration Day Posted: 24 Nov 2010 08:17 AM PST Ufff, can’t remember when this happened on options expiration day for delivery month for silver but it happened yesterday. Today, we got fresh Comex numbers for yesterday’s trading – options expiration day for Dec 2010 gold and silver futures. And the numbers speaks very bullish for silver price. Here are the shocking numbers… Dec 2010 [...]
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| QE2 and the Great Mis-Diagnosis Posted: 24 Nov 2010 08:16 AM PST QE2 & THE GREAT MISDIAGNOSIS by Jim Willie CB November 24, 2010 home: Golden Jackass website subscribe: Hat Trick Letter Jim Willie CB, editor of the "HAT TRICK LETTER" Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy. The backdrop has turned dire on several front simultaneously. The great millstone around the USEconomy's neck...
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| Profiting from Information Overload Posted: 24 Nov 2010 08:13 AM PST Throughout most of history, human beings could expect to grow old and die in a world very much like the one into which they were born. Change was slow, by modern standards. People lived as hunter-gatherers for hundreds of thousands of years, before agricultural technology took root and changed society about 10,000 years ago. Then, only 200 years ago, the industrial revolution radically remade society yet again. In the late 20th century, the electronic computer started a new revolution, which is still ongoing. Today, culture is still playing "catch up" with the radical democratization of information and opinion that new, computer-enabled media and ubiquitous network connectivity is creating. Yet modern nanotechnology, in its various forms, promises to usher in a new technological growth phase mere decades after the information technology revolution began. In each case, the amount of time between one fundamental technological shift and the next has grown shorter. The result, from an economic standpoint, is that each new "technology growth phase" accelerates wealth creation, and improves the quality of life for everyone by reducing costs and solving problems. To give an example of how technology keeps things cheap, the price of oil has been slowly rising over the last few months. However, what would the price of oil be today if we were still using the same technology that struck black gold at Spindletop in 1901? The short answer is that oil would be far more expensive, if any was available at all anymore. The story of the last 100 years would be very different without the inexpensive energy that fueled it. Another example: what would the price of food be today without the Green Revolution? At one time, more than 90% of the US population was involved in agriculture in one way or another. Today, it is around 2%. In past times, an extended economic downturn like the current one meant hunger for many. Today, the problem of the poor is too many calories. If it were not for transformational innovation in food production, many of us wouldn't be able to secure enough daily calories to survive. For many people, however, it starts to become difficult to process accelerating technological change. Even for those of us that track technology, it is impossible to monitor everything. Nanotech-enabled life extension technology, for example, is going to shape the future economy and culture in ways we cannot even begin to imagine. Since most people do not immediately recognize the importance or implications of transformational technologies, those that do gain an advantage. As investors, this creates unique opportunities for us to profit. It is for this reason that I like to update you periodically on the latest advances announced in science journals. I will mention a couple here… Stem Cells Will Pump You Up For an older person, it takes longer to recover from a strenuous workout or a muscle injury than for a younger one. Muscle mass declines with age as well. As our understanding of cellular biology improves, we anticipate new treatments targeting tissues like muscles to restore them to a more youthful state. Researchers at the University of Colorado at Boulder recently demonstrated that young stem cells transplanted into the leg muscles of mice prevented age-related atrophy and repaired injury. The stem cells not only repaired the injury, but doubled muscle mass as well. Even two years later, the now-old mice retained higher levels of muscle mass. According to Bradley Olwin, a co-author of the study, "the transplanted stem cells are permanently altered and reduce the aging of the transplanted muscle, maintaining strength and mass." When transplanted into healthy tissue, however, there was no measurable change in muscle growth. The stem cell grafts only appear to create new growth in muscles that are damaged by injury. The researchers are working to understand what mechanism signals the stem cells to grow in hopes of developing drugs to mimic their behavior. Such technology could be applied to degenerative muscle diseases. It could also find an application in halting or reversing the muscular atrophy that accompanies aging. Quantum Computing Leaping Forward Practical, commercialized quantum computers would represent a disruptive transformation of the computing industry. Instead of encoding information on relatively large blocks of material, quantum computers could store information on single electrons or atoms, called qubits. Such machines would be incredibly powerful and solve problems that are impossible for current computers. Manufacturing computers with individual parts made of such tiny bits of matter is difficult with current technology, though. Many qubits can be missing, or faulty. According to a study published in Physical Review Letters quantum computers can be made to function even if they have a large number of malfunctioning components. In this paper, the international scientists published a discovery of a way to correct for these errors by using an error correcting system that mimics how humans correct for faulty data. According to the lead author, Dr, Sean Barrett, "Just as you can often tell what a word says when there are a few missing letters, or you can get the gist of a conversation on a badly-connected phone line, we used this idea in our design for a quantum computer." This paper, however, is theoretical in nature, so engineers will need to build quantum computers with enough tiny particle-sized qubits to demonstrate this concept's utility. In the meantime, Burnaby, Canada-based D-Wave claims to have built large-scale supercooled quantum computers containing hundreds of qubits. D-Wave has worked with Google in the past to perform quantum-enabled pattern recognition. Google has demonstrated that this technology can spot individual objects, like cars, in tens of thousands of pictures. Recently, D-Wave submitted a proposal to Google and the Jet Propulsion Laboratory to develop a quantum computing facility based on its technology. Finally, IBM is jumping into the fray with renewed vigor. Recent quantum computing discoveries in academia suggest the possibility of building quantum computers using more conventional, common methods used in semiconductor manufacturing. This has piqued IBM's interest, and it has raised the stakes by enlarging its research in the field. It has put together a large group to embark on a five-year mission to explore the possibilities, seek out new technologies, and profit from going where no one has gone before. Ad lucrum per scientia (toward wealth through science). Ray Blanco Profiting from Information Overload originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Banks feel threatened by Bullion bulls Posted: 24 Nov 2010 08:07 AM PST There's a lot at stake right now as the central banks around the world feel threatened by the rise in price of both gold and silver. They understand the well guarded secret that gold is the only real money out there and fiat paper is just a poor pretender to the throne. The unbridled printing of fiat paper is the tool used by central banks to separate you from your wealth.
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| Buy Gold: It’s the Only Way to Combat Government Spending Posted: 24 Nov 2010 08:00 AM PST I tried to tell my boss that my unexplained absence was because I was so Completely Freaked Out (CFO) that I didn't know what to do all weekend except hide like a little crybaby coward in the Big, Beautiful Mogambo Bunker (BBMB) waiting for the inevitable collapse of the entire world order because of the massive over-creation of money by the foul Federal Reserve, where I whimpered and cried in fear because We're Freaking Doomed (WFD) and there is nothing – repeat, nothing! – that can be done. Naturally, I lost track of time, and so my absence is completely understandable and not my fault, but is, instead, the fault of the foul, filthy Federal Reserve creating so much money, for so long, that the US economy has been turned into a bloated, cancerous, twisted, bloated, government-centric grotesquerie that has almost destroyed us. I didn't tell her that through the mist of my bitter tears, though, I still managed to get a good laugh from the quixotic earnestness of Erskine Bowles and Alan Simpson, chairmen of some idiotic National Commission on Fiscal Responsibility and Reform trying to craft a plan to reduce government spending in an effort to reduce the national debt. Of course, before you can reduce the debt, you have to stop it from getting bigger, which is a Long, Long Way From Here (LLWFH) as even former Senator Alan Simpson says, "for every buck we spend we're borrowing 39 cents." At first I laughed with my usual merriment at such foolishness, although somewhat childishly hopeful and enthusiastic about the new commission while managing to overlook the fact that it is just another outrage of central planning to redistribute incomes that is doomed to failure. Suddenly, I also saw it as a ray of hope! Quickly, I proposed to my boss that instead of her just firing me like she wants to – and like I deserve – I organize a Company Commission on Responsibility and Reform to address my poor job performance, my incompetence and staggering net losses due to my apparent natural stupidity. She rudely vetoed my terrific plan, just like she always vetoes my Terrific Mogambo Plans (TMP) ever since that time long ago, in one of our first power-struggles after she came waltzing into the job opening that should have been mine to fill, when I casually asked her if she was buying gold, silver and oil as a defense against the horrifying inflation in prices that will result from the Federal Reserve creating so much new money. She acted surprised at the question, but admitted, smiling to be nice, "No." Boy, you should have seen that pleasant smile disappear from her stupid face as I was instantly on the attack, telling her that that meant she was stupid, as anybody with any brains at all knows that they should be buying gold, silver and oil with frantic abandon in response to the foul Federal Reserve acting so treacherously! Ergo, I went on, I didn't think that it was appropriate that I take orders from somebody more stupid than I, and if she wanted me to listen to any of her "boss" crap, she had better get some gold, silver and oil soon so that she would demonstrate enough smarts that I would value her opinion enough to even listen to it. I am not going to dwell on her reply or the brouhaha about how "cleaning the executive washroom" mysteriously appeared on my Job Description, but I will note for the record that her reaction is partly responsible for my now being totally AGAINST the National Commission on Fiscal Responsibility and Reform, as I always figured I would be. So, I go back to mirthlessly laugh – Hahaha! – at their arrogance, their conceit and their up-to-now total ignorance of the decades-long growing problems, caused by the Federal Reserve creating the money that made the problems financially possible, that underscore their glaring incompetence. As for the economy, a dollar not spent by the government is a dollar not received by somebody, which reduces national income dollar-for-dollar, which is Highly, Highly Significant (HHS) now that state, local and government spending constitutes slightly more than half – half! – of all spending in the Whole Freaking Country (WFC), meaning that government spending IS the freaking economy! Government spending is the economy!! And this is Just The Beginning (JTB) of the misery, because this horrific fact is made worse by that whole ordinary Multiplier Effect of the velocity of money, compounding the economic misery of each of those missing dollars as it no longer bounces hand to hand through the economy with everyone making a little profit and governments taking a little bite at each exchange, nibbling, nibbling, nibbling at it until it disappears totally. And let's not forget that every dollar is now the basis of a whole universe of derivatives, leveraging each of those dollars 10-to-1, 20-to-1, sometimes 40-to-1 – and more! – meaning that the total impact is some huge, unfathomable, terrifying multiple of this!!! And now these weenies think that they are going to reduce the debt? Hahaha! If Simpson, Bowles and the rest of National Commission on Fiscal Responsibility and Reform weenies had a clue about economics, they would note the use of the rare triple exclamation point at the end of the previous paragraph and correctly deduce that the only intelligent thing to do is to buy gold, silver and oil, which is not only the only the smart thing to do, but the easy thing, too! Whee! This investing stuff is easy! The Mogambo Guru Buy Gold: It's the Only Way to Combat Government Spending originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Silver COT Analysis: Short Squeeze in the Making Posted: 24 Nov 2010 07:59 AM PST The foundation has been built for one of the biggest short squeezes in history. As seen through this week’s Commitments of Traders (COT) report, the short covering by the commercial banks looks like it’s well under way with a dramatic reduction in the net short position of 4,831 contracts (24.155m ounces). Even more exciting is the huge decrease in adjusted net open interest, falling by 5,005 contracts. It is now apparent something has startled all of the commercials as we see a decrease of 1,861 in the net short position of the 4 largest and a decrease of 1,220 in the net short position of the 8 largest. While their concentration levels actually increased, that is only due to the fact net open interest fell by much more than their net short positions. This is the most bullish report I’ve seen thus far in any COT report. There now appears to be structural changes taking places. Increasing open interest has been the trend for a very prolonged period of time; thus it is encouraging to see such a dramatic decrease in this number. Remember this report ended Nov. 14, so it won’t be until next week’s report that we can be confident the structural changes in the COT are here to stay. Finally, before getting to the actual data, it is worth noting that this bullish report came in the face of increasing margin requirements. To me, the change in the margin requirements were done in order to buy the commercials more time to unwind their short positions and avoid catastrophic losses. As you can see the following data is very encouraging, especially when taking note of the trend: Complete Story »
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| Posted: 24 Nov 2010 07:56 AM PST Benzinga submits: By Scott Rubin The gold bears continue to come out of the woodwork with every tick higher in the precious metal. This type of speculation appears to be particularly rampant in the professional trading community and among "sophisticated investors." The favored argument against gold is that it has no "utility." Complete Story »
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Gold prices edged down amid a firm dollar, as investors cautiously shifted to more risky assets following a batch of mostly positive economic data from the US. Data released this morning revealed initial jobless claims unexpectedly fell last week, and a gauge of consumer sentiment was revised upwards. However, orders for US-made durable goods and sales of new homes dropped…
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