Gold World News Flash |
- U.S. Investors must take a global view to protect their wealth!
- Gold is trivialized because what it exposes is so scary
- Will governments confiscate gold?
- “Anytime silver gets smacked down by the banksters, I feel like picking a fight.”
- “Many of you have received an email from APMEX yesterday about buying gold and silver over spot price.”
- Gold Currency: Mandatory Now, For Traders?
- Broad Dollar Index at a 16 Year Low; USDX at a 32 month Low
- Safe Storage for Gold and Precious Metals From an Expert’s point of view
- As Paul weighs presidential run, his issues are already being debated
- Ron Wortel: High Gold Prices Raise Old Mines
- 'Slow-motion default' of U.S. impels Paul toward new presidential run
- Audio of Jay Taylor's interview with GATA's Powell is posted
- Gene Arensberg: As silver shorts retreat, could Comex fail to deliver?
- The Bankers' Silver Scam Is Unwinding
- Silver at the Hillary Step of a Massive Peak
- In The News Today
- Guest Post: Security In A Free Society
- Lewis E. Lehrman: Monetary reform is the key to spending restraint
- Seth Lipsky: Questions for Ben Bernanke
- Gold and Silver Coins are Money
- Silver - Top or Not?
- Silver – 8 Hour Chart Update
- Stocks, Dollar, and VIX Not Anticipating Negative Reaction to Fed
- Is the Country Ready Now?
- One Chart, Two Ways to Measure the Dollar's Decline
- Are silver blogs deterring women? I hope not!
- Keiser Report: Fleeing Dollar Flood & Fraud
- Chris Whalen: "Why The Fed Must Let Rates Rise"
- Is America Finally Ready for Ron Paul?
- Gold futures log first loss in nine sessions
| U.S. Investors must take a global view to protect their wealth! Posted: 27 Apr 2011 05:13 AM PDT We believe that the current myopic view of the gold price in the U.S. dollar will continue for a while still, until there is a shock that will force a more global perspective. It may happen slowly or suddenly. The earlier investors arrive at this viewpoint, the greater the profits they will make out of the precious metals and the more effectively they will protect their existing wealth against a falling dollar.
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| Gold is trivialized because what it exposes is so scary Posted: 27 Apr 2011 01:22 AM PDT You know we've been up against all the power and money in the world for a long time, and we never expect sympathy, or even journalism, but an essay posted today at MarketWatch.com, written by its Wall Street columnist, David Weidner, and headlined "Buy Gold," does its best to trivialize what should be a serious subject.
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| Will governments confiscate gold? Posted: 26 Apr 2011 06:45 PM PDT Finance and Eco.
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| “Anytime silver gets smacked down by the banksters, I feel like picking a fight.” Posted: 26 Apr 2011 06:02 PM PDT Picking A Fight With 5 Silver Traitors/Traders Share this:
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| Posted: 26 Apr 2011 05:59 PM PDT APMEX Implications Share this:
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| Gold Currency: Mandatory Now, For Traders? Posted: 26 Apr 2011 05:54 PM PDT Graceland Update
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| Broad Dollar Index at a 16 Year Low; USDX at a 32 month Low Posted: 26 Apr 2011 05:52 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] ...
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| Safe Storage for Gold and Precious Metals From an Expert’s point of view Posted: 26 Apr 2011 05:30 PM PDT GoldSilver Vault
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| As Paul weighs presidential run, his issues are already being debated Posted: 26 Apr 2011 04:57 PM PDT By Michael D. Shear http://www.nytimes.com/2011/04/27/us/politics/27paul.html WASHINGTON -- Representative Ron Paul of Texas announced Tuesday the formation of a presidential exploratory committee, saying he anticipated "a much, much more significant campaign" than he ran in 2008 should he decide to become an official candidate for the presidency in 2012. Speaking at an event in Des Moines, Mr. Paul, 75, said he would decide by the end of May whether to become a candidate and stressed the reasons that he believed he might wield more influence over the shape, direction and conversation of the Republican contest this time around. "The country is already quite different," Mr. Paul said. "There are literally millions of more people concerned about the very things I talked about four years ago. It is the excessive spending, the entitlement system, the foreign policy, as well as the monetary system." ... Dispatch continues below ... ADVERTISEMENT Wall Street Journal Publishes Lewis Lehrman's Call for the Gold Standard In its April 26 edition The Wall Street Journal published an important essay by the Lehrman Institute's chairman, Lewis E. Lehrman, explaining why a gold-convertible dollar is critical to eliminating the shocking federal deficit. "Experience and the operations of the Federal Reserve System compel me to predict that U.S. Rep. Paul Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in success -- even with a Republican majority in both Houses and a Republican president in 2012. ... "What persistent debtor could resist permanent credit financing? For a government, an individual, or an enterprise, 'a deficit without tears' leads to the corrupt euphoria of limitless spending. For example, with new credit the Fed will have bought $600 billion of U.S. Treasuries between November 2010 and June 2011, a rate of purchase that approximates the annualized budget deficit. Commodity, equity, and emerging-market inflation are only a few of the volatile consequences of this Fed credit policy." To read more, and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata As a potential candidate, Mr. Paul, a 14-term congressman, has a larger national profile in 2011 than he did in 2007, when he ran for the Republican nomination as a largely unknown lawmaker. The issues he says are important -- concern about federal debt, spending and the size of government -- are front and center this year. And his passionate libertarian followers are, if anything, better organized as part of the Tea Party movement, which includes more mainstream Republicans. "I think he'll play a bigger role this time than he did four years ago," said Trey Grayson, the director of the Institute of Politics at the Harvard Kennedy School. "You can't underestimate someone who has a passionate following who can raise money." Mr. Paul remains, by choice, at the fringes of the Republican Party's ideology, issuing critiques of the Federal Reserve (he calls the central bankers "counterfeiters") and voting against most legislation that in his view increases the size of the federal government. He tends to pay little attention to standard political conventions. He is fiercely antiwar at a time when Republicans have typically expressed staunch support for the military efforts overseas. He calls for deep and painful sacrifices by important political constituencies. Surveys suggest that Mr. Paul's support remains low. In most recent polls, Mr. Paul receives just over 5 percent of the support from potential Republican voters. That is similar to the level of support he received in contests four years ago, when he served mostly as a foil for discussion during the debates. Mr. Grayson, who lost a bid for the Republican Senate nomination in Kentucky to Mr. Paul's son Rand, said he did not believe that Mr. Paul would win the nomination. But he said the Tea Party energy "is going to be very helpful, especially in a caucus state like Iowa, where it doesn't take many votes" to win. In the 2008 campaign, Mr. Paul's message of fiscal discipline, harsh spending cuts, and dire warnings about the deficit seemed out of sync with the relative affluence through most of 2007. Now the debate consuming Washington is about the issues that Mr. Paul cares about: the debt, the deficit, and the consequences of failing to shrink government. Drew Ivers, a member of the state central committee of Iowa's Republican Party and the chairman of Mr. Paul's Iowa leadership team, is convinced that this year could be different. "Ron Paul finds himself right in the center of the three or four or five of the most critical and controversial issues in our nation today: The spending. The war. The financial crisis," Mr. Ivers said in an interview Tuesday. "That's how snowballs develop, you know. They start small, and they get bigger as they roll downhill." During the 2008 campaign, Mr. Paul proved to be a better-than-expected fund-raiser, but he did it late in the game. In December 2007, just days before the Iowa caucus, Mr. Paul raised $6 million in a one-day "money bomb" that was timed to coincide with the 234th anniversary of the Boston Tea Party. This year, Mr. Paul would most likely tap into his donor base much earlier, giving him the opportunity to advertise on television throughout the primary season. He could also be helped by less competition for donor dollars than in 2007, when he was competing against a field of a dozen Republican candidates, including several with deep pockets or a proven ability to raise millions. Mr. Paul also won't have to spend so much time in this campaign explaining who he is and what he believes. When he started his bid for the Republican nomination in January 2007, he was a little-known member of Congress. A Washington Post poll in February 2007 put him at just 1 percent, if the vote were conducted then. Four years later, Mr. Paul's poll numbers remain low, but his participation in the 2008 debates and his frequent appearances on television have kept him in the news. Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 Canuc Resources Pursues Ecuador and Nova Scotia Gold Projects Canuc Resources Corp. (TSX: CDA) has confirmed high-grade gold and the potential for large-tonnage, low-grade copper and gold mineralization at its primary asset, property in the historic Nambija gold mining district in southeastern Ecuador. Last November Canuc took an option on the Mill Village gold property in southwestern Nova Scotia, which includes two past-producing mines. Canuc plans to begin surface and underground exploration at Mill Village in the next several weeks, financed by $2 million recently raised through a private placement. To generate immediate income, Canuc is acquiring MidTex Oil and Gas Co., owner of a producing gas well and a lease on 320 acres in Stephens County, Texas. Canuc's CEO, Gary Lohman, has more than 30 years of experience in the mining industry, primarily as a geologist, and the company's officers include similarly experienced people. For more information about Canuc, please visit http://www.canucresources.ca/.
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| Ron Wortel: High Gold Prices Raise Old Mines Posted: 26 Apr 2011 04:53 PM PDT Source: Zig Lambo and JT Long of The Gold Report 04/25/2011 Dramatic rises in metals prices over the past 2 years could bring 10 or more past-producing mining camps back to life. In this Gold Report exclusive, MineralFields Group's Engineer and Investment Analyst Ron Wortel shares how he finds promising gold juniors working these mines and structures tax-advantaged, flow-through investments to finance Canadian resource development. The Gold Report: Ron, can you give us a little background on your company, MineralFields Group, and what it'll be looking at in the future? Ron Wortel: MineralFields was founded 10 years ago and just recently surpassed the $1-billion mark raised from our Canadian investors looking for substantial income tax breaks, along with the ability to enjoy absolute returns on the flow-through investments we offer them. MineralFields is the most consistent, top-performing fund among the flow-through limited partnerships. We have a unique, multilay...
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| 'Slow-motion default' of U.S. impels Paul toward new presidential run Posted: 26 Apr 2011 04:21 PM PDT 12:15a ET Wednesday, April 27, 2011 Dear Friend of GATA and Gold: Yesterday's New York Sun reported at length about an interview with U.S. Rep. Ron Paul just before he left for Iowa to announce formation of a committee to explore another presidential candidacy. Among other things, Paul remarked: "Don't you think it's demagogic to accuse the Chinese of manipulating their currency when we've been manipulating our currency forever?" The interview, written by David Pietrusza, is headlined "Ron Paul Was Tempted to Walk Away from Presidential Race, but Fears U.S. Is in 'A Slow-Motion Default'" and you can find it at the Sun here: http://www.nysun.com/national/ron-paul-was-tempted-to-walk-away-from/873... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 Wall Street Journal Publishes Lewis Lehrman's Call for the Gold Standard In its April 26 edition The Wall Street Journal published an important essay by the Lehrman Institute's chairman, Lewis E. Lehrman, explaining why a gold-convertible dollar is critical to eliminating the shocking federal deficit. "Experience and the operations of the Federal Reserve System compel me to predict that U.S. Rep. Paul Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in success -- even with a Republican majority in both Houses and a Republican president in 2012. ... "What persistent debtor could resist permanent credit financing? For a government, an individual, or an enterprise, 'a deficit without tears' leads to the corrupt euphoria of limitless spending. For example, with new credit the Fed will have bought $600 billion of U.S. Treasuries between November 2010 and June 2011, a rate of purchase that approximates the annualized budget deficit. Commodity, equity, and emerging-market inflation are only a few of the volatile consequences of this Fed credit policy." To read more, and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| Audio of Jay Taylor's interview with GATA's Powell is posted Posted: 26 Apr 2011 04:05 PM PDT 12:04a ET Wednesday, April 27, 2011 Dear Friend of GATA and Gold: Audio of your secretary/treasurer's interview Tuesday with Jay Taylor on his Internet radio program, "Turning Hard Times into Good Times," has been posted at the VoiceAmerica Internet site here: http://www.voiceamerica.com/episode/53447/have-you-seen-our-gold/54830 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 Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php
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| Gene Arensberg: As silver shorts retreat, could Comex fail to deliver? Posted: 26 Apr 2011 03:57 PM PDT 11:56p ET Tuesday, April 26, 2011 Dear Friend of GATA and Gold (and Silver): Gene Arensberg's new edition of the Got Gold Report, posted in the clear tonight, attributes silver's dip to a margin maintenance increase on the New York Commodity Exchange. Arensberg adds that the usual big shorters have actually been retreating as silver has been rising. Silver, he writes, is in backwardation and Comex silver stocks available for delivery have just shrunk significantly and are plainly inadequate to cover contract commitments. Arensberg expects increasing volatility. Arensberg's commentary is headlined "CME Margin Cold Water for Red-Hot Silver" and you can find it at the Got Gold Report here: http://www.gotgoldreport.com/2011/04/cme-margin-cold-water-for-red-hot-s... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 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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| The Bankers' Silver Scam Is Unwinding Posted: 26 Apr 2011 03:43 PM PDT
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| Silver at the Hillary Step of a Massive Peak Posted: 26 Apr 2011 03:00 PM PDT Ben Bernanke has the starter pistol, if we are off to the races. Have you placed your bets, take positions, set... Markets are poised, while they wait for the man who controls the happy juice. Will we be in happy land, or detox??? Read More...
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| Posted: 26 Apr 2011 02:17 PM PDT Thought For The Afternoon Will they or will they not continue QE is not the question. They must, be it through the front or back door. The future of the dollar is what you need to know if you are to navigate this, the most violent upcoming part of the gold drama. The dollar situation is damned if you do and damned if you don't. A suspension of QE is negative MOPE that would impact the equity market, therein destroying the liquidity rally from March of 2009. The recovery is not getting serious traction regardless of the bliss of the media. The US dollar would be hit hard by a collapse of this modest recovery that a suspension of QE would mandate. If QE is to continue, either front or back door, the dollar will remain under pressure. Forget the media and blog commentary. The future of gold is all in the dollar. The US dollar has no future under present conditions.
Jim Sinclair's Commentary Wall Street owns Washington. This is just another acquisition in the financial merger of all Western governments. Did the Fed not bail out the EU banks, and few Swiss ones at that? Sarkozy Backing of Draghi for ECB Post Puts Pressure on Merkel to Follow French President Nicolas Sarkozy's endorsement of Mario Draghi as the next European Central Bank chief pressures German Chancellor Angela Merkel to follow suit or risk rankling her biggest European partners, analysts say. Sarkozy yesterday backed Bank of Italy Governor Draghi, 63, after signals from German officials that he's their preferred banker, adding momentum to a campaign to make him Europe's most powerful monetary policy maker. The leader of Europe's largest economy, Merkel has yet to indicate a preference for a successor to Jean-Claude Trichet at the ECB. The appointment may become tied up in German opposition to bailouts. With Portugal's rescue set to push the cost of aid to euro states past 250 billion euros ($366 billion), Merkel may face domestic criticism for choosing a southern European from a country with a legacy of inflation and debt. "Merkel is in a dilemma," Juergen Michels, chief euro- area economist at Citigroup Inc. in London, said by telephone. "The question is whether Merkel can sell an Italian at the helm of the ECB as a guarantor of stability to the German public." Draghi emerged as the front-runner after Germany's Axel Weber withdrew from the race in February. German Finance Minister Wolfgang Schaeuble sees Draghi as likeliest to be appointed as the ECB's next president, people close to him say. Trichet's non-renewable eight-year term ends on Oct. 31.
Jim Sinclair's Commentary China is going to full shields up protection against the US dollar's demise Have you fully protected yourself? If you have then you are part of the 1% that has. Gold is getting ready to go ballistic. 'New funds considered' to protect reserves BEIJING – The central bank is planning new investment funds to diversify holdings in the nation's $3 trillion foreign exchange reserves, to hedge against depreciation and inflation risks, according to a news report. The proposed funds will invest some of the foreign reserves in energy and precious metal markets, the New Century Weekly said on Monday, citing unnamed sources close to the People's Bank of China. However, the report did not disclose the size of the proposed funds, their operation methods or the timing of their possible launch. The central bank was not available for comment. Foreign exchange reserves jumped by $197 billion to $3.04 trillion in the first quarter, marking the second-biggest increase on record, central bank statistics show. That fueled concern over devaluation risks and over-exposure to US debt.
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| Guest Post: Security In A Free Society Posted: 26 Apr 2011 01:07 PM PDT
The next in a continuing series (most recently: The Governance of a Free Society). Security in a Free Society
While a single world government has long been and is now the fervent hope of both neoliberals (socialists) and neoconservatives (fascists), it should be clear to all who have followed this continuing series that a world government – a world state – would be the worst possible eventuality for humanity. True, it would theoretically bring an end to the state of nature that exists among the world’s nearly 200 constituent states and thus put an end to war between them. But given the nature of the state, this would, in practical terms, amount to a Final Solution for human freedom and thus for humanity itself. For in the bureaucratization of all human affairs, a world state would complete the process of political parasitism that has ever and always sucked the life out of the human enterprise. So rather than succumb to the belief, however deeply entrenched, that the state provides security for anyone other than itself, let us confront the fact that what the state provides is a one-sided affair that is entirely at odds with its people’s security. After all, “no one in his right mind would agree to a contract that allowed one’s alleged protector to determine unilaterally – without one’s consent – and irrevocably – without the possibility of exit – how much to charge for protection.” ii Yet as this is precisely what the state imposes on its subjects, it should come as no surprise that the cost of security, as noted above, increases in inverse proportion to the security actually provided. And while it is certainly true that without a state, “stronger agents will be tempted to use force against the weak and impose government on them,”iii it is also true that such agents will be tempted to do so with a state. They always have, and, as long as long as material scarcity is a fact of human existence, they always will. There will always be those, that is, who, whenever possible, will choose the political means – theft – over the economic means – work – so why encourage them with the provision of a territorial monopoly on the use of force and thus the institutionalization of the political means? Why capitulate in advance to the “stronger agents,” in other words, when it is not at all a given that (1) one or another of these agents will succeed in imposing a government on “the weak” or (2) that “the weak” will stand for it if they do? Once a given society is empowered, say, with genuinely contractual protections of life, liberty, and property, who can say with any assurance that “stronger agents” will prevail against its members? What about such a society’s own strength? For again, with the whole world watching, predatory groups will have to stand trial in the court of public opinion. And being found guilty – i.e., being openly devoid of any moral authority for their actions – they will find it very difficult, if not impossible, to impose their will on others, at least for long. Thus, as the devolutionary process challenged the moral authority of smaller and smaller states, constrained in direct proportion to their increasing “feebleness,” society will turn elsewhere for security. Where? To its only alternative, the market. How? Mostly likely via the insurance industry. For “even now insurance agencies protect private property owners upon payment of a premium against a multitude of natural and social disasters, from floods and hurricanes to theft and fraud.” iv All are forms of security, after all, so why should “defense” be any different, especially since insurance companies are very large, far-flung affairs that are
And again, with the collapse of the “monster” vi states, the monstrous threat that they present to the world will decline proportionately, reducing security insurance to something more in line with the mundane tasks to which everyone is already accustomed, the reason being that “defense” insurance will have the same market-based advantages of other insurance:
Security, then, will ultimately be a purely individual affair, no matter if “group” insurance is the manner in which it is provided. Either way, the decision will be individual, and the benefit will be individual, with no state dictating the price of that benefit while failing to provide it. In the meantime, the reduced threat to the American states from the collapse of their central government will allow them to make a generally peaceful transition to independence. After all, the violence that is being directed at America today, even though it often targets civilians, has but one objective and that is to topple the American government. That is to say, what al-Qaida and others want to happen to the United States is the same thing that Americans wanted to happen to the former Soviet Union. And it is as ludicrous to think that al-Qaida would attack America after its central government had collapsed as it would have been to think that the U.S. would have attacked the Soviet Union after its government had collapsed. Thus are we left to contemplate what is really afoot as the interregnum of the state finally draws to a close, which we address in my next submission: “The End of History.”
i Ibid., Hoppe, pp. 239 and 241.
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| Lewis E. Lehrman: Monetary reform is the key to spending restraint Posted: 26 Apr 2011 12:54 PM PDT Paul Ryan's plan won't succeed without legislation to prevent the Federal Reserve from monetizing the national debt. By Lewis E. Lehrman http://online.wsj.com/article/SB1000142405274870398370457627743181382615... No man in America is a match for House Budget Committee Chairman Paul Ryan on the federal budget. No congressman in my lifetime has been more determined to cut government spending. No one is better informed for the task he has set himself. Nor has anyone developed a more comprehensive plan to reduce, and ultimately eliminate, the federal budget deficit than the House Budget Resolution submitted by Mr. Ryan on April 5. But experience and the operations of the Federal Reserve system compel me to predict that Mr. Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in success -- even with a Republican majority in both Houses and a Republican president in 2012. Why? Because the House Budget Resolution fails to reform the Federal Reserve system that supplies the new money and credit to finance both the budget deficit and the balance-of-payments deficit. So long as the Treasury deficit can be financed with discretionary money and credit -- newly created by the Federal Reserve, by the banking system, and by foreign central banks -- the federal budget deficit will persist. ... Dispatch continues below ... ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php It is true that federal deficits will rise more or less with the business cycle, leading previous deficit hawks such as Sens. Phil Gramm and Warren Rudman to believe that if we just reined in federal spending and increased economic growth we'd have a balanced budget. Indeed, for two generations fiscal conservatives and Democratic and Republican presidents alike have pledged to balance the budget and bring an end to ever-rising government spending. They too were informed, determined, and sincere leaders. But they did not succeed because of institutional defects in the monetary system that have never been remedied. President Reagan was aware of the need to reform the monetary system in the 1980s, but circumstances and time permitted only tax-rate reform, deregulation efforts, and rebuilding a strong defense. And so the monetary problem remains. The problem is simple. Because of the official reserve currency status of the dollar, combined with discretionary new Federal Reserve and foreign central bank credit, the federal government is always able to finance the Treasury deficit, even though net national savings are insufficient for the purpose. What persistent debtor could resist permanent credit financing? For a government, an individual, or an enterprise, "a deficit without tears" leads to the corrupt euphoria of limitless spending. For example, with new credit, the Fed will have bought $600 billion of U.S. Treasurys between November 2010 and June 2011, a rate of purchase that approximates the annualized budget deficit. Commodity, equity and emerging-market inflation are only a few of the volatile consequences of this Fed credit policy. The solution to the problem is equally simple. First, to limit Fed discretion, the dollar must be made convertible to a weight unit of gold by congressional statute -- at a price that preserves the level of nominal wages in order to avoid the threat of deflation. Second, the government must at the same time be prohibited from financing its deficit at the Fed or in the banks -- both at home or abroad. Third, only in the free market for true savings -- undisguised by inflationary new Federal Reserve money and banking system credit -- will interest rates signal to voters the consequences of growing federal government deficits. Unrestricted convertibility of the dollar to gold at the statutory price restricts Federal Reserve creation of excess dollars and the inflation caused by Fed financing of the deficit. This is so because excess dollars in the financial markets, at home or abroad, would lead to redemption of the undesired dollars into gold at the statutory parity price, thus requiring the Fed to reduce the expansion of credit in order to preserve the lawful convertibility parity of the dollar-gold relationship, thereby reducing the threat of inflation. This monetary reform would provide an indispensable restraint, not only on the Federal Reserve but also on the global banking system -- based as the system now is on the dollar standard and foreign official dollar reserves. Establishing dollar convertibility to a weight unit of gold, and ending the dollar's reserve currency role, constitute the dual institutional mechanisms by which sustained, systemic inflation is ruled out of the integrated world trading system. It would also prevent access to unlimited Fed credit by which to finance ever-growing government. By adding these monetary reforms to his House Budget Resolution, Mr. Ryan has a chance to succeed where previous deficit hawks have failed. As today's stalwart of a balanced budget, he must now become a monetary-reform statesman if he is to attain his admirable goal of balancing the federal budget by 2015 without raising taxes. ----- Mr. Lehrman is chairman of The Lehrman Institute. Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 Wall Street Journal Publishes Lewis Lehrman's Call for the Gold Standard In its April 26 edition The Wall Street Journal published an important essay by the Lehrman Institute's chairman, Lewis E. Lehrman, explaining why a gold-convertible dollar is critical to eliminating the shocking federal deficit. "Experience and the operations of the Federal Reserve System compel me to predict that U.S. Rep. Paul Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in success -- even with a Republican majority in both Houses and a Republican president in 2012. ... "What persistent debtor could resist permanent credit financing? For a government, an individual, or an enterprise, 'a deficit without tears' leads to the corrupt euphoria of limitless spending. For example, with new credit the Fed will have bought $600 billion of U.S. Treasuries between November 2010 and June 2011, a rate of purchase that approximates the annualized budget deficit. Commodity, equity, and emerging-market inflation are only a few of the volatile consequences of this Fed credit policy." To read more, and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| Seth Lipsky: Questions for Ben Bernanke Posted: 26 Apr 2011 12:34 PM PDT By Seth Lipsky http://online.wsj.com/article/SB1000142405274870377810457628681388761988... Federal Reserve Chairman Ben Bernanke, in a break with tradition, will now hold quarterly press conferences. The first begins today at 2:15 p.m. Here are four questions: 1) Mr. Chairman, I have here what my college poker buddies used to call a "Portrait of Grant" -- that is, a $50 Federal Reserve Note. It is my understanding that the United States code says that this is redeemable at the Federal Reserve in "lawful money." Does that mean that it is not in and of itself lawful money? And might I impose on you here and now to redeem this bill for me in lawful money? The reason I ask is that my Portrait of Grant used to buy enough gas for me to fill the tank on my jalopy, but now I'm paying darned near $5 a gallon. I am hoping that "lawful money" might get me more gas. ... Dispatch continues below ... 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 2) Mr. Chairman, when you appeared before the House Committee on Financial Services on March 2, Congressman Ron Paul, the new chairman of the subcommittee on monetary policy, which has direct oversight of the Fed, asked you what your definition of the dollar is. It took him a phenomenal gust of 670 words to ask the question, during which he talked about, among other things, the soaring price of gold. You listened patiently and complimented him for raising some important points. Then you replied, "My definition of the dollar is what it can buy. Consumers don't want to buy gold. They want to buy food and gasoline and clothes and all the other things that are in the consumer basket." Your definition made no reference to either the Constitution or to the laws passed by Congress. So where in the law do you get your definition of a dollar? You may not like the definition the Founders used, which was 371 and ¼ grains of silver, but isn't it important to have some definition in the law of what a dollar is? 3) Mr. Chairman, last month a federal jury in North Carolina convicted a man named Bernard von NotHaus of counterfeiting U.S. coins. His medallions, which he called "Liberty Dollars," were made of silver. When he sold them he was getting about $20 for a medallion containing an ounce of silver, and now the coin is worth nearly twice that amount in U.S. dollars. Yet the dollars you issued back when Mr. von NotHaus was in business have plunged in value to but a fraction of the silver or gold they were worth when you issued them. Mr. von NotHaus may be going to jail for years, and yet here you are. I don't mean to suggest in any way that you broke any law, but how do you feel about this situation? 4) Mr. Chairman, one of the reasons our country broke from England is that the tyrant over there, George III, had "made judges dependent on his will alone for the tenure of their offices and the amount and payment of their salaries." That's the language in the Declaration of Independence. So the Founders wrote it right into the Constitution that a judge's salary may not be diminished while he continues in office. Now some of our federal judges have been in office since the dollar had a value of a 35th of an ounce of gold. Since then, the value of the dollars in which they've been paid has collapsed by far more than any cost-of-living adjustment they've received. To add insult to injury, the automatic cost-of-living adjustment the Congress passed has been suspended. Some of our most distinguished federal judges are so upset they're appealing to the Supreme Court to get involved. I'm wondering how you would testify in that case. Do you think that a judge who was paid a decade ago in a dollar that was worth a 265th of an ounce of gold and today is being paid with a dollar that is worth but a 1,500th of an ounce of gold has had his salary diminished? And what would the Founders say about that? ----- Mr. Lipsky is editor of the New York Sun. Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or 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 Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php
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| Gold and Silver Coins are Money Posted: 26 Apr 2011 12:30 PM PDT Gold Price Close Today : 1503.00 Change : (5.60) or -0.4% Silver Price Close Today : 45.050 Change : (2.099) or -4.5% Gold Silver Ratio Today : 33.36 Change : 1.366 or 4.3% Silver Gold Ratio Today : 0.02997 Change : -0.001280 or -4.1% Platinum Price Close Today : 1804.50 Change : -20.10 or -1.1% Palladium Price Close Today : 751.90 Change : -7.90 or -1.0% S&P 500 : 1,347.24 Change : 11.99 or 0.9% Dow In GOLD$ : $173.23 Change : $ 2.24 or 1.3% Dow in GOLD oz : 8.380 Change : 0.109 or 1.3% Dow in SILVER oz : 279.59 Change : 14.90 or 5.6% Dow Industrial : 12,595.37 Change : 115.49 or 0.9% US Dollar Index : 73.77 Change : -0.231 or -0.3% It pays always to keep your eyes on the horizon, so that the confusing details around you assemble themselves into a larger picture. From a friend in Iowa I received an email reporting that a friend had gone to buy a US$7,300 piece of farm equipment. When it came time to pay, his friend asked the dealer, "Do you want paper, silver, or gold?" The dealer brightened and said, "Silver, and I'll give you a discount if you pay in silver." Behold, the new economy! Here behold the goal and means to free ourselves of the Federal Reserve's fiat money tyranny and economic slavery: we stop using their phony private money and return to [quite legal and constitutional] gold and silver money. We remove ourselves from the economic storms caused by their rotten currency and crooked banking and we rebuild our local economies on a sound silver and gold basis. Just try it. Next time you pay, ask the person whether they want paper, gold, or silver. See what happens. Worst they can say is NO. Also, the ever-sagacious Catherine Austin Fitts and I teamed up to create www.silverandgoldaremoney.com. There you can punch in any US dollar amount and in real time convert that to a payment in US 90% silver coin, US gold or silver American Eagles, or a host of non-US gold and silver coins and bullion. Next time you hand somebody green paper dollars or a credit card, just remember: you are forging your own chains. And forget the US government threats and persiflage: you have a constitutional and common law right to contract for any payment you please. More than that, all gold and silver coins ever minted by the US government remain "legal tender." Using gold and silver coin is not "bartering", it's MONEY. You forge your own chains. MARKETS TODAY: We trod not the office steps yesterday, but observed for Easter Monday. Considering yesterday's fireworks, that probably was a great idea. I know y'all only want to know about silver and gold, but be patient: it all works together. THE US DOLLAR INDEX has sunk 32.3 basis points since last Thursday, from 74.096 to 73.773. Today alone it lost 21.3 more bp, 0.27%. Yet look not smugly on. Today the dollar formed a falling wedge, which promises that tomorrow, if it breaks not below 73.744, 'twill rise tomorrow. And that would surprise. Breaking down past the last low, 73.74, and the December low, 74.23, targets the dollar for 72 or lower. The scabrous euro took advantage of the buck's swoon to rise to another new high for the move (ho-hum) at 1.4643, up 0.77%. Even the yen has gapped up and headed higher. Today it's trading at Y81.55/$ (122.62c/Y100). Only sign this situation might turn around is that falling wedge on the dollar's daily chart. Baldly stated, I don't believe the stock market, or more precisely, I DISbelieve the stock market. No economic reason exists for its rise, except the Fed and other central banks pumping out zillions of new money which all runs straight into financial markets. Add to that the Nice Government Men on the Plunge Protection Team steadily meddling in the market, following the Spirit of Potemkin to keep up a cardboard front screening the real and rotten economy. Today the Dow rose to a new high for the move, 12,595.37, up 115.49. The S&P500 rose 11.99 to 1,347.24. Hey, here's an idea! Instead of investing your money in stocks, why not take a couple hundred thousand bucks out into your back yard, bury it, and see if a money tree comes up? There are very few overnight certainties in markets, but it appears that yesterday silver turned down, and gold will probably break as well. The SILVER PRICE sank 10.5% from its 4985 high Monday to a 4464.7c low. One expects to see that sort of move on a trend reversing day. I hasten to add that this is no certainty, as every forecast dwells in a foggy nimbus. But a quick calculation shows that if this is the break, then the target might be 3360. Y'all must bear in mind that the more overhyped and overblown a market becomes, the more severe the following reaction. Every hedge fund in the world has hopped on to silver, and they have almost as much loyalty as a 1915 Irish draftee in the British army. They will dump silver by the truckloads as soon as they sniff a break. The naïve think this is terrible, that the bull market has ended, that it proves silver is in a bubble. Nothing could be further from the truth. It is a normal process in every market, and clears away the grotesque over-optimism to make way for another advance. Biggest argument AGAINST a correction in precious metals remains GOLD. It sank a paltry $5.60 today to close Comex at $1,503.00, but that offered no damage. The SILVER PRICE on the other hand fell 209.9c to 4505c, down 4.5% in one day. The gold/silver ratio fell 4.26%, too. Once the gold price crosses that $1,500 wall protecting investor morale, it will tumble, too. Target there might be $1,445. On the upside, the silver price needs to close over 5000c and gold above $1,525 to suggest that this rally hath yet legs. On this day in 1983 the Dow Jones Industrial Average broke 1,200 for the first time. I recount that incident to impress upon y'all's minds how far markets can outrun our imagination. The ultimate Dow High was 11,722, about ten times that 1983 figure. In Florida and Georgia today is Confederate Memorial Day. It was yesterday in Mississippi. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com Phone: (888) 218-9226 or (931) 766-6066 © 2011, 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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| Posted: 26 Apr 2011 11:19 AM PDT When gold hit the psychologically important $1,500 level it didn't surprise us, but we admit that silver's recent performance gave us a small thrill. Before jumping into the chart analysis, let's have a look into the factors that contributed ... Read More...
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| Silver – 8 Hour Chart Update Posted: 26 Apr 2011 10:25 AM PDT Dear CIGAs, Based on open interest numbers from yesterday's price action, we had a significant number of fresh short positions instituted in Silver on its run towards $50. Combined with record volume ( a mind boggling 319,024 ) it looks like we had a blow off top in silver for the time being. That high near $49.80 will now serve as the new resistance level beyond which silver is going to have to move before we can get a fresh leg higher in this market. The market is now in the process of probing lower seeking to uncover support. Precisely at what level that will arise is unclear. It has found a bit of a respite from the selling near $44.60 but that looks fairly flimsy at this point. More substantial support lies closer to $43.50. Beyond that it looks as if $42 will be the next level. To have a shot at making another run towards its recent peak, silver will have to close above $47.25, or the gap left from its Sunday evening open. Click chart to enlarge in PDF format with commentary from Trader Dan Norcini For further market analysis and commentary, please see Trader Dan's website at www.traderdan.net
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| Stocks, Dollar, and VIX Not Anticipating Negative Reaction to Fed Posted: 26 Apr 2011 10:24 AM PDT From a fundamental perspective there are reasons to be nervous about the approaching end of the Fed's second quantitative easing program (QE2) and possible policy changes to begin mopping up some of the liquidity in the financial system. Read More...
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| Posted: 26 Apr 2011 10:13 AM PDT The 5 min. Forecast April 26, 2011 11:59 AM by Addison Wiggin – April 26, 2011 [LIST] [*]Time for another tussle? Ron Paul to announce "exploratory committee"… meanwhile, what are they are smoking in Washington… [*]"Within a hair of a double dip"… Case-Shiller delivers "worst" housing numbers on several fronts [*]Jim Nelson on some defensive assets with long-term strength… and why he's bailing out now [*]Gold stumbles, silver tumbles… James Turk on why silver's epic run isn't over yet [*]A heavy "knock on the door"… shades of "security clearances"… and things "I wish I could forget"… readers take aim at the State Department's proposed passport application [/LIST] On Oct. 30, 2007, we got in a tussle with a reader. Can you imagine? On that day, it was because we weren't stumping for Ron Paul as conscientiously as Lew Rockwell. This morning, we see we may yet get another chance. Dr....
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| One Chart, Two Ways to Measure the Dollar's Decline Posted: 26 Apr 2011 10:08 AM PDT But the dollar's path requires a little thought. It's clearly down, but doesn't seem to be falling as consistently and dramatically as gold is rising. Why is that? Read More...
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| Are silver blogs deterring women? I hope not! Posted: 26 Apr 2011 09:46 AM PDT Share this:
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| Keiser Report: Fleeing Dollar Flood & Fraud Posted: 26 Apr 2011 09:40 AM PDT Share this:
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| Chris Whalen: "Why The Fed Must Let Rates Rise" Posted: 26 Apr 2011 09:35 AM PDT
From Chris Whalen, posted on Reuters Why the Fed must let rates rise This week all eyes are on the Federal Open Market Committee (FOMC) and Federal Reserve Chairman Ben Bernanke. The FOMC must decide whether to stop monetizing the federal debt issued by the Treasury, which is what the U.S. central bank calls “quantitative easing.” Americans continue to believe — and hope — that the Fed can save us from our collective idiocy when it comes to debt, both public and private. While there are growing signs that the Fed’s zero interest rate policy, or “ZIRP,” is greatly damaging individuals and financial institutions alike, we also need to question whether the Fed can let rates rise without provoking another financial assets collapse. In effect, the Fed and other global central banks are all caught in a “Catch-22″ situation, to borrow the phrase from the 1961 novel by Joseph Heller. The Fed’s aggressive easing of interest rates and purchases of trillions of dollars in Treasury debt and other assets has stabilized and even raised the price of financial assets, but in other respects the Fed’s policy of reflation has failed — especially compared with past interest rate cycles. In a comment published by IRA this week, Chief Monetary Economist of Cumberland Advisors Bob Eisenbeis notes:
In an earlier comment in one of my pieces on Reuters.com, I looked at the fact that “the Fed faces continued asset price deflation at home even as the impact of its accommodative policies are already boosting global inflation.” My friend and mentor Alan Boyce, who ran the risk book at Countrywide, has been trying to educate people in Washington about the lack of “trickle down” money in terms of the Fed reliquifying the housing sector. While the Fed’s QE and ZIRP have been a boon to the largest banks and investors on Wall Street, Main Street has been left in the cold. The continued decline in home prices in February as reported by Case-Shiller — now down eight months in a row — has been ignored to a great peril by the Obama administration. As I’ve noted previously in this blog, how does President Obama expect to win reelection if the U.S. housing sector and the banks that hold these assets are melting down come election day 2012? Last summer, my firm earned condemnation from Wall Street for suggesting that U.S. banks were not out of the woods and that net interest margins were starting to fall. Dawn Kopecki at Bloomberg reports: “At JPMorgan, almost half of the New York-based bank’s earnings came from the release of reserves previously set aside to cover bad loans. Net revenue at the second-largest U.S. bank dropped 8.9 percent to $25.2 billion.” The reason that revenue at many banks is falling is largely to the Fed’s policy stance, but also reflects the still dismal economic situation on Main Street. Most banks are seeing the revenue from interest earnings fall as older assets run off and new assets with far lower yields are put in their place. But the lack of demand for credit from consumers and business is also a big factor behind the sharp drop in bank assets. The chart below is of the gross loan yield for Bank of America vs. its large bank peers. It is taken from the IRA Bank Monitor using data from the FDIC and shows the gross yield on the loan book for Bank of America Corp’s subsidiary banks going back a decade. Notice that in the 2000 timeframe, just before Chairman Bernanke joined the Fed and his predecessor Alan Greenspan stepped on the monetary gas pedal, bank’s were earning yields on loans almost two times of today’s levels. Notice, too, how competition in the 2005-2007 period drove bank loan yields down, but from 2007 the Fed’s QE and ZIRP temporarily boosted lending spreads.
Now, however, the benefits of Fed easing and FDIC debt guarantees are fading. Bank loan yields are starting to fall as lenders compete ever more aggressively for the few borrowers in the market who want credit and can actually qualify for a loan. The shrinking pool of earning assets and the lack of yield on these assets is perhaps the greatest danger to the banking system — and makes it next to impossible for Chairman Bernanke to put off raising interest rates much longer. As we told clients of The IRA Advisory Service last week during the Q1 2011 earnings reports from the banks:
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| Is America Finally Ready for Ron Paul? Posted: 26 Apr 2011 09:33 AM PDT On Oct. 30, 2007, we got in a tussle with a reader. Can you imagine? On that day, it was because we weren't stumping for Ron Paul as conscientiously as Lew Rockwell. This morning, we see we may yet get another chance. Dr. Paul is holding a press conference today in Iowa. We're told he'll launch an "exploratory committee" – that fateful first step toward a run for the presidency. In 2007, we suggested the country – pre-Lehman, pre-stimulus, pre-bailouts – wasn't ready for the medicine Dr. Paul prescribes. Perhaps now that we've seen a few trillion-dollar deficits and a community organizer who's proven equally adept at military adventurism as his "aw, shucks" predecessor… a few more people are willing to go to the pharmacy… or, at the very least wondering now what that mysterious lump is. "This would seem to be an ideal year for Paul," muses the Washington wonk weekly National Journal: "Since the last election, the Republican Party has moved much closer to his view on deficit reduction. All of the party's top-tier presidential hopefuls are focusing on lowering debt, government spending and tax rates, issues Paul has long advocated." "Ron Paul Is Starting to Make Sense," reads the headline the May issue of Esquire. He "is the most important politician in America today," the profile begins, "because he's the rare politician – maybe the only politician – who always says exactly what he really believes. "Unlike Paul Ryan, Haley Barbour, Mitt Romney, Mitch Daniels and Mike Huckabee, who all raised taxes while calling for lower taxes, Ron Paul gives us a chance to examine the ideas currently driving the conservative movement in their pure form." We'll see. One way to examine those ideas is by reading this review penned by our own Gary Gibson. While Dr. Paul is away in Iowa, the nabobs in Washington are twittering over two "competing visions" of the way forward – the 12-year budget plan of the president and the 10-year plan of Rep. Paul Ryan. We can see why. The difference between them is "vast":
Hmmn… shall we raise the national debt by 84% in the next 10 years, or merely 62%? To even suggest the national credit card may be revoked long before then… well, that makes you a "kook" in these parts. Still for a growing number of people in "flyover country," it's starting to make sense… and get real. Is America Finally Ready for Ron Paul? originally appeared in the Daily Reckoning. The Daily Reckoning recently featured articles on stagflation, best libertarian books, and QE2 .
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| Gold futures log first loss in nine sessions Posted: 26 Apr 2011 09:18 AM PDT By Myra P. Saefong and Chris Oliver In Monday's session, June gold closed at a record $1,509.10. That was gold's sixth consecutive high-water mark and its eighth straight day of gains. During the winning streak, prices gained $55.50 from the April 12 closing level of $1,453.60. In a review of last week's trading, which saw strong gains for both gold and silver, analysts at GoldForecaster.com said, "it is clear that gold is neither spiking nor raging. It is being 're-evaluated' in a dramatically changing market." "Add burgeoning Asian demand that buys to hold, central bank demand that 'buys the dips' and you are seeing a runaway price with only short sharp corrections," they said. Strategists remained mostly upbeat over the prospects for gold and silver going forward. … But July platinum ended down $22.70 at $1,805.40 an ounce and June palladium lost $5.10 at $755.70 an ounce. "Platinum has been the forgotten metal during the run-up in precious metals prices, as investors have instead focused on gold and silver," said Rob Kurzatkowski, senior commodity analyst at OptionsXpress. "That is understandable, as investors do not see the metal as a pure currency like gold." [source]
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