Gold World News Flash |
- CME hikes Gold margin rates
- News That Matters
- Gold ETF Holdings Hit All Time High As Silver ETF Holdings Decline
- Embry - Fed & QE to Cause Financial Collapse & Hyperinflation
- Capital Floods into Gold, Little Guy Gaming
- Silver Update: “Fiat Dollar”
- Gold Seeker Closing Report: Gold Gains Over $40 More While Dow Drops Over 500 More
- Dow Drops 520 Amid New Europe Debt Concern
- Gold Breaks Free, Silver Remains Chained To The US Dollar
- CME GROUP hikes margins for gold
- Big shorts getting bolder in gold and silver, Arensberg reports
- Alasdair Macleod: Beyond the tipping point
- CME Raises Margin Requirements on Gold and Treasuries and Energy and Swiss Francs
- Update 7:45PM EST Gold $1,810
- Gold Hits Record $1796 In Access Trading / Dow Plummets By 520 / The Shorts In Silver And Gold In Serious Trouble
- Swiss Capital Flows Indicate Metal Surge in Europe
- CME Hikes Gold Margins By 22% And Gold Drops by....0.4%, Resumes Climb
- European Bank Stress Gauges Hit Levels Not Seen Since Lehman
- Ron Paul: "Gold not a bubble"
- Gold setting new record highs above $1800 in the Kangaroo Session
- Forum 1800
- Gold Price in a Parabolic Rise, and no Telling Where it will Stop
- Gold Breaks $1800
- 5 Reasons Why American Riots Will Be The Worst In The World
- Global Banking Crisis Fears Lurch to the Foreground
- GOLD SHORTS GET WIPED OUT!!!
- The Effects of a Financial Repression
- Michael Ballanger: Market Conditions Extremely Gold-and-Silver Friendly
- Thom Calandra views silver in the context of GATA's London conference
- The ECB's only choice is to protect the banks
| Posted: 10 Aug 2011 06:46 PM PDT CME Hikes Gold Margins By 22% And Gold Drops by….0.4%, Resumes Climb
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| Posted: 10 Aug 2011 06:16 PM PDT
Ft.com George Osborne is to tell MPs on Thursday that he has drawn up contingency plans to deal with the fallout of a new European banking crisis, amid renewed market turmoil and speculation about the health of the French banking sector. The FT reports Mr Osborne will tell an emergency session of the Commons that there is no immediate threat to financial stability http://ftalphaville.ft.com/thecut/2011/08/11/650201/osborne-to-outline-contingency-plans/ French president Nicolas Sarkozy gave his finance and budget ministers a week to devise new measures to cut France's budget deficit as shares in the country's banks plummeted in the latest bout of financial markets turmoil http://ftalphaville.ft.com/thecut/2011/08/11/650251/focus-of-eurozone-crisis-turns-to-france/ Groupon has abandoned a controversial accounting measure in a revised prospectus for its initial public offering filed on Wednesday. The FT reports the Chicago-based online coupon company was criticised after its initial filing in June for using a metric called "adjusted consolidated segment operating income", http://ftalphaville.ft.com/thecut/2011/08/11/650241/groupon-revises-its-ipo-prospectus/ Shares in Cisco Systems rose as much as 13 per cent in late trading after profit and sales beat analysts' estimates, Bloomberg reports. It was the first time in six quarters that the shares gained after results. Profits of 40 cents per share in the fourth quarter exceeded average analysts' estimates of 38 cents http://ftalphaville.ft.com/thecut/2011/08/11/650231/cisco-shares-jump-on-earnings/ Trading in equities and derivatives has hit record levels this week, the FT reports, as investors traded frantically in response to a tumult of factors such as the US Federal Reserve's decision to stick with near-zero interest rates until 2013, http://ftalphaville.ft.com/thecut/2011/08/11/650191/trading-volumes-reach-record-levels/ The yuan strengthened beyond Rmb6.4 per dollar for the first time in 17 years, Bloomberg reports, supported by the Federal Reserve's pledge to keep interest rates at a record low and signs China will http://ftalphaville.ft.com/thecut/2011/08/11/650136/yuan-strengthens-against-dollar/ Wsj.com France is preparing new measures to ensure it meets its deficit-reduction targets, French President Nicolas Sarkozy said Wednesday, as the country gears up to fight to retain its top-notch triple-A credit rating. Mr. Sarkozy, who unexpectedly came back to Paris from his holiday retreat on the Côte d'Azur to call a meeting with key cabinet ministers and Bank of France governor Christian Noyer, said the deficit-reduction goals are "imperative," and tasked the finance and budget ministers to make proposals so that they can be safeguarded. http://online.wsj.com/article/SB10001424053111904006104576499582749927712.html?mod=WSJEurope_hpp_LEFTTopStories The euro rebounded from early session lows in Asia trade on Thursday, led by a rally in regional stocks that caught many analysts by surprise given investors globally remain downbeat on the prospects for world growth. Catching the eye of traders was the daily fix of the yuan against the U.S. dollar after the Chinese central bank guided its currency to a stronger-than-expected level http://online.wsj.com/article/SB10001424053111903918104576501192237870896.html?mod=WSJEurope_hpp_LEFTTopStories Bank of England Governor Mervyn King said Wednesday he won't commit to any particular path for monetary policy as the central bank cut its forecasts for both inflation and economic growth in the U.K. Mr. King told reporters it is "very dangerous" for policy makers to make a public commitment around future interest rates and that monetary policy should instead react to changes in economic conditions as they arise. "Monetary policy has to be able to respond to changing circumstances," Mr. King told reporters following the publication of the BOE's quarterly inflation report. Mr. King's reluctance http://online.wsj.com/article/SB10001424053111903918104576499730805645012.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews Greece's ambitious reform program suffered a double setback Wednesday after it emerged that talks with the country's creditors on a bond swap plan have stumbled and fresh data showed a sharp increase in the budget deficit. Citing poor private sector participation, officials said that a plan to swap Greek government debt maturing by 2020 into new, longer-dated securities, might be extended to include bonds falling due in 2022 or even 2024. http://online.wsj.com/article/SB10001424053111904006104576500032711389132.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews The Bank of Korea kept its benchmark interest rate on hold for a second straight month as it opts to tread cautiously in normalizing policy amid global market turmoil and increasing concerns about the health of Korea's major export markets. The BOK, as expected, held its policy rate at 3.25% at its monthly rate review on Thursday. "The Korean economy appears on track for steady growth. However, the downside risk to growth is likely to increase due mostly to the momentum of recoveries in the U.S. and other major countries slowing, and to signs of sovereign debt problems in the euro area spreading," the BOK said. http://online.wsj.com/article/SB10001424053111903918104576501162298232234.html?mod=WSJASIA_hpp_LEFTTopWhatNews Financial stocks took another thumping Wednesday, adding to the pressure building on Bank of America Corp. Chief Executive Brian Moynihan. BofA shares led a financial rout for the second time this week. They slid 11% to $6.77 in heavy trading even as Mr. Moynihan struck a contrite tone in an unusual public conference call, in his latest effort to win over skeptical investors. http://online.wsj.com/article/SB10001424053111903918104576500480744611382.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews South Korea returned fire twice toward North Korea Wednesday after it said artillery shells fired from the North landed on the southern side of the countries' sea border near an island Pyongyang attacked last year. The flare-up underscores how any progress in talks over the North's nuclear program could be derailed by armed confrontation. http://online.wsj.com/article/SB10001424053111904006104576499502627933520.html?mod=WSJEUROPE_hpp_MIDDLESecondNews After three decades of serial reorganizations, Eastman Kodak Co. is struggling to stay in the picture. The 131-year-old company lost much of its film business to foreign competitors, then mishandled the transition to digital cameras. Now it is quickly burning through its cash as it remakes itself into a company that sells printers and ink. http://online.wsj.com/article/SB10001424053111903454504576488033424421882.html?mod=WSJASIA_hpp_LEFTTopWhatNews Marketwatch.com Japan's core machinery orders, a key leading indicator for capital spending, rose 7.7% in June, the Cabinet Office reported Thursday, widely beating a 1.7% forecast from a Dow Jones Newswires survey of analysts. Core machinery orders, which strip out volatile power-utility and shipping orders, rose 3.0% in May. However, the data set is generally volatile, and the June release included a forecast for the orders to rise just 0.9% during the July-September quarter. http://www.marketwatch.com/story/japans-core-machinery-orders-jump-77-in-june-2011-08-10 Oil prices have been thumped as concerns about global growth keep investors sidelined, but analysts say the fundamentals in Asia remain strong enough to reinvigorate energy demand. Demand has weakened in light of the struggling world economy. This week, the International Energy Agency (IEA) cut its global outlook for 2011. The IEA now estimates for 2011 global oil demand will be 60,000 barrels a day less than previously projected, with the agency citing the impact of high crude prices and slowing economic growth. http://www.marketwatch.com/story/asian-appetite-to-support-oil-demand-2011-08-11 Reuters.com Concerns about S&P's downgrading of the U.S. credit rating and the resulting global stock sell-off are sparking urgent calls for investigations and reinvigorating ongoing efforts to reform the ratings agencies, which have been under fire since the Enron scandal of 2001. Representative Maxine Waters, a California Democrat, on Wednesday called for the House Financial Services Committee to hold a hearing on the implications of the S&P downgrade. http://www.reuters.com/article/2011/08/11/us-financial-regulation-creditraters-idUSTRE77A03S20110811 Bloomberg.com Economic miracles sometimes need course corrections, even in Singapore, which last year was home to more U.S. dollar-millionaire households per capita than any other country, according to Boston Consulting Group Inc. As non-Singaporean workers and companies have poured into what the World Bank says is the easiest place on earth to do business, some Singaporeans have been left behind. The income gap between richest and poorest has widened in recent years, according to the government statistics department. http://www.bloomberg.com/news/2011-08-10/singapore-miracle-dimming-as-income-gap-widens-squeeze-by-rich.html Societe Generale (GLE) SA, France's second-largest bank, denied "all market rumors" and asked the nation's market watchdog for an investigation after speculation France's creditworthiness was in doubt sent the shares tumbling. The lender's performance in July and early August shows it will be able to post "solid" results in the future, Paris- based Societe Generale said in a statement after the market closed yesterday. The bank asked France's Autorite des Marches Financiers to open a probe into the origin of speculation that is "extremely harmful to the interests of its shareholders." http://www.bloomberg.com/news/2011-08-10/societe-generale-leads-fall-in-french-banks-as-credit-default-swaps-climb.html Bill Gross was right after all, though that hasn't helped his investors this year. Former White House economic adviser Lawrence Summers and Christina Romer, the former chairman of the U.S. Council of Economic Advisers, were among critics who challenged a view promoted by Gross's Pacific Investment Management Co. that the U.S. economy may be headed for a long period of below-average growth and high unemployment, a scenario known as "new normal." Money manager Kenneth Fisher called the concept "idiotic." http://www.bloomberg.com/news/2011-08-10/pimco-s-gross-proves-summers-wrong-as-selloff-shows-new-normal-is-real.html Central bankers are racing to shield their economies from fiscal tightening and lopsided currency swings that threaten a new global recession. In the 72 hours after a Group of Seven conference call on Aug. 7, the Federal Reserve pledged to keep interest rates near zero through at least mid-2013, the European Central Bank intervened in bond markets and the Bank of England indicated it's ready to add more stimulus if needed. Japan signaled renewed concern about the yen and Switzerland yesterday stepped up its fight to curb an "overvalued" franc. |
| Gold ETF Holdings Hit All Time High As Silver ETF Holdings Decline Posted: 10 Aug 2011 05:52 PM PDT The SPDR Gold Shares Trust (GLD) added 10.22 tonnes of gold since last week as gold prices continue to surge higher. The GLD now has a net gain in gold holdings of 15.80 tonnes since the first of the year. The all time high holdings of the Gold Shares Trust was 1320.47 tonnes reached on [...]
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| Embry - Fed & QE to Cause Financial Collapse & Hyperinflation Posted: 10 Aug 2011 04:35 PM PDT  With gold breaking above the $1,800 level in overnight trading, today King World News interviewed John Embry, Chief Investment Strategist at the now $10 billion strong Sprott Asset Management. When asked about the action in gold Embry stated, "Well I think the action of gold is basically confirming what is happening in the real world. There has been a series of troubling events, beginning with the debt limit settlement, which everybody probably believed would be viewed bullishly and gold and silver would be hammered. When it was looked at closely it was a terrible agreement.They just kicked the can down the road, they've done minimal spending cuts and they have given themselves another 15% on the debt limit, which is allegedly going to carry them through the election. On closer inspection, S&P decided we are going to downgrade the paper. Right there were two events that I would consider very gold friendly."
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| Capital Floods into Gold, Little Guy Gaming Posted: 10 Aug 2011 04:24 PM PDT HOUSTON -- It seems as though the Big Markets are pretty determined to have a bad time about now. That's an over-reaction to all the fear feeding on worry feeding on dread coming out of the E.U. - heaped on top of the "Debt Valley" talk here on this side of the pond. Metaphor mixing, the CDS sharks have European banks in their gun sights and capital is flooding out of The Continent and into anywhere it can find a place to hide temporarily. Some of that fearful funding is finding its way into gold.
Choices of where to hide are limited and dwindling, but with Fed Chairman, Dr. Bernanke, pretty much forcing capital to seek somewhere besides bank balance sheets to "live" (if they want any yield at all), dividend paying equities in the U.S. ought to see quite a bid once people feel able to come up for air again out of the Panic Pool.
How often do we get a bona-fide panic sell-down to work with? How often do we get the chance for a sure-enough liquidity vacuum to game? (A liquidity vacuum or LV occurs when a panic seller unloads a large number of shares into a weak or inadequate bid, temporarily sending an issue hurtling much, much lower. Sometimes that triggers a follow-on response from other panicky sellers. However, typically an LV reverses course and recovers within a day or two and sometimes in minutes.)
Hey, how about that? The HUI finished the day up 3.1%. Whatever happens just ahead, we have to be encouraged when the smaller miners are not plunging in a vertical free fall when they certainly could be if investors thought the end of the world as we know it was near. We Vultures have reserved a portion of our Bargain War Chest to fire at ridiculous, panic liquidity vacuum inspired, Stupid Cheap prices on a few of our Faves. That includes a number of the issues we track on charts on the subscriber pages – the issues we have dubbed Vulture Bargain Candidates of Interest or VBCIs. Over the past few days we have managed to snag a few of the Stupid Cheap offerings by the Trading Gods, but we have an appetite for more. Vultures love to add to our most favored small resource companies when they are under severe duress – with an eye to building a meaningful, ultra-low-cost position in them over time. That's of course for the issues we have deemed worthy of our speculating and the ones we believe will not only survive but have a decent chance of a major score in the near (1 to 3 year) future. We often share our 'short hand notes' on the VBCIs we are stepping in to game on the tracking charts themselves in near real time. By the way, for non-Vultures, when we use the term Stupid Cheap, we're not referring to the sellers at all. People sell for all kinds of reasons, including panic, but that doesn't make them 'stupid.' Instead, when we refer to Stupid Cheap or SC on our tracking charts, we mean to say that the issue has reached the level that we believe we will look back at it a year or two hence and say to ourselves, "Man, it was stupid not to have bought some back then." What is perhaps most remarkable is not the number of our VBCIs that have traded down into our targets, but actually the opposite. We are somewhat surprised that some of the issues we really wanted to game have so far not even come close to where we would be comfortable adding them. With such a strong negative liquidity event underway, and with the issues trading well up above our targets, when the "all clear" ends up sounding (and it will sound at some point), we may just have to rethink the targets on the ones that showed so much strength in the storm… How about that? Crazy panic sell-downs won't last forever, so 'enjoy' them while they last. That is all for now, but there is more to come.
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| Silver Update: “Fiat Dollar” Posted: 10 Aug 2011 04:17 PM PDT |
| Gold Seeker Closing Report: Gold Gains Over $40 More While Dow Drops Over 500 More Posted: 10 Aug 2011 04:00 PM PDT Gold saw roughly 1% gains in Asia and London before it advanced even higher in New York and ended near its noontime record high of $1796.49 with a gain of 2.43%. Silver rose to as high as $39.469 and ended with a gain of 3.91%.
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| Dow Drops 520 Amid New Europe Debt Concern Posted: 10 Aug 2011 03:48 PM PDT From Bloomberg By Stephen Kirkland and Rita Nazareth - Aug 10, 2011 4:55 PM ET Stocks slid, dragging the Dow Jones Industrial Average to the lowest level since September 2010, and Treasuries rose for a third day amid concern the European sovereign debt crisis is worsening. The dollar climbed versus 13 of 16 major peers, with the euro [...] 
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| Gold Breaks Free, Silver Remains Chained To The US Dollar Posted: 10 Aug 2011 03:42 PM PDT  "Gold was the investment of the last decade and silver is going to be the investment of this decade." -Eric Sprott Few things in the investment world could match the frustrations of a Silver Bull. The "investment of a lifetime" performs as if lifeless as it's Big Brother Gold answers the call to safety as the World's debt markets begin to collapse under their own weight, taking the fiat currencies that support them down the rat hole with them. Silver may appear lifeless and adrift here as it teeters up on to the big stage...it is not. There is no question that to be a Silver investor [let alone a trader] takes a cast iron stomach, and balls of steel. We are right to be confused by Silver's lack of participation in the Global "Flight to Safety" that Gold is now experiencing. But is that confusion justified? Perhaps not. It is now quickly becoming quite clear that Gold is decoupling from all fiat currencies, and much to Bumbling Ben Bernake's shock and awe, Gold is asserting itself as the Global currency of choice. That's right Ben, you !#*!ing jackass, GOLD IS MONEY. Confidence in the US Dollar, and ALL fiat currencies, is no longer simply waning...it is beginning to collapse. And a "crisis of confidence" in fiat currency, and in particular the US Dollar, is all Gold needs to reach for "Infinity And Beyond". Gold is no longer swayed by a "bid in the Dollar". Gold no longer gives a damn about the Dollar, the Euro, or the Yen. GOLD IS MONEY NOW. And Big Money is now chasing Gold. But the question is, what about Silver? Here is what is holding Silver back...right now, but not for long. The damn US Dollar. Shocking, I know, but look at a chart of the US Dollar. Despite teetering, the Dollar has remained firm and well bid since the announced debt-ceiling increase AND the debt downgrade.  The stock markets did not react kindly to the debt ceiling increase, or the debt downgrade [and don't forget the horrendous GDP report on July 29]. The stock markets have for all intents and purposes, collapsed over the last eight trading days. Historically, when stocks crash, investors sell-out and and hold cash. They hold that cash in short-term US Treasuries. [Thus the rise in Treasury prices DESPITE the debt downgrade.] Us Treasuries are bought with US Dollars. This creates a demand for US Dollars thus putting an "artificial bid" under the Dollar. Investors will sort out the cause of the crash "after" they are safely out of stocks and in cash. Investors will stay parked in cash [Dollars] until they decide next where to put their cash to work for them in the financial markets. I hope that made sense. This scenario in the markets: stocks to cash, cash to treasuries, occurs during most any upheaval in the stock markets...it is normal. This is why the commodity market has been smashed along with stocks. Commodities are bought with US Dollars the world over. A strong Dollar results in weak commodity prices every time. In many respects, this stock market crash was probably engineered by The Powers That Be specifically to crash the commodity markets, and convince the unsuspecting that Inflation has been contained. Sadly, for Silver, it has been lumped in with all the other commodities. It's monetary virtues ignored at this moment in time. This misfortune is unlikely to last for long. "To 250 million persons in 51 countries the word for money is the same as the word for silver and silver literally means money." -Silver Profits in the 80's, by Jerome F. Smith and Barbara Kelly Smith, copyright © 1982, ERC Publishing Company, page 43. Bumbling Ben Bernanke, by guaranteeing the Fed Funds Rate will remain at ZERO into mid 2013, has set in motion the collapse of the US Dollar. The loss of confidence in the US Dollar that this announcemnt will bring very shortly, will eventually send Silver and all the other "commodities" soaring in a race to catch up with Gold. It is only a matter of time.  And Silver has been marking time for the past seven years. In the very near-term, Silver may "appear" lifeless and adrift as the backside of our financial hurricane finally comes ashore and exposes the weakness of all that was propped during the "eye of the storm" from Spring 2009 to Spring 2011. The reality is that Silver is "right now" poised for a major move higher. A move higher that may lead to the recognition that the US Dollar's day as the World's Reserve Currency are over. The Big Picture in Silver tells us that a breach of the $50 barrier will signal the collapse of the US Dollar is imminent or in progress. All efforts to keep Silver bottled up as EVERY other commodity on the planet has risen to new All-time highs have been to avoid the inevitable...the complete destruction of the global fiat currency system. A move below 73.50 on the US Dollar Index will light the fuse on Silver. A move below 72.75 on the US Dollar Index will launch Silver to levels only dreamed about, and forever be remembered as The Day The Dollar Died. Silver will "nickel and dime" you to death if you stare at long enough. It's time IS coming. Patience, the US Dollars days are now numbered. The countdown on Silver has begun. By Dan Norcini Here is the deal - the FOMC is attempting to drive money out of bonds and INTO equities based on the fact that they have guaranteed practically no return as far as yields go on short term Treasuries for at least two years. Think about that. As an investor would you want to lock up money for that long for that kind of yield or would you want to buy stocks and attempt to capture a bit better return on your investment capital. After all, something beats nothing as far as returns go, especially if you think that this easy money policy is going to feed into further asset appreciation as the Dollar further succumbs to the news. Forget about the ECB's quasi QE program to buy up Italian and Spanish debt. The Euro was bought like mad while the Dollar was pounded lower as the Fed is obviously sacrificing the Dollar in an attempt to keep a low interest rate environment in which stocks are rising. That is at least, what they hope to create. I suspect that they are going after higher equity prices in an attempt to gin up confidence in the US economy by creating a rising stock market. What more can I say than YIELD. Here we go again - chase and chase yield. I would watch the US Dollar very closely right now as a result of today's FOMC statement. I am coming away with the idea that they are now resorting to currency debasement but in a manner in which it is not so obvious as if they had just come out and said, "We are going to do a QE3". They have effectively told everyone that there is not going to be any growth worth speaking of for the foreseeable future in the US economy and that therefore yield on US Treasuries will be very low. They are also now counting on the market to take this idea of slow growth and bid up the back end of the yield curve without fear of the inflation monster. This is going to be an interesting exercise to observe. Can the Fed manage to induce investors/traders to plow into stocks without having them also plow money into the commodity sector. If Bernanke and company had come right out and announced another attempt at QE3, commodity prices, particularly energy prices would have shot up immediately producing that same dampening impact on the consumer and the overall economy that it did during QE1 and QE2. By taking this line of approach, the Fed is hoping to convince market players that growth in the economy will be so slow that there will be no increasing consumer or business demand for energy and thus no reason to bid up the price of crude oil and thus gasoline. Same goes for food prices. We will simply have to wait and see how this plays out but for today at least, they managed to take equity prices up while taking commodity prices down. After the linkage we have been seeing between the two for both QE's, this is no mean feat. The Fed are fools if they believe they can "force money into stocks" simply because of low bond yields, and at the same time convince investors that "slow growth" will dampen demand for commodities and keep their prices low. The Fed has sold out the US Dollar. Commodity prices will rise regardless of "physical demand" simply because the value of the Dollar is now set to crumble. Jim Willie explained this well in an essay I posted previously, and post again here to drive home the point: By Jim Willie CB The economic theory in textbooks must be updated to account for Fiat Soft Science. An important third factor determines price. It is not demand, as most Deflationist Knuckleheads claim. It is not supply, as the moronic followers of Laffer Curve advocates insist. Instead, it is the falling USDollar since all commodities are priced in US$ terms. Lower demand will not result in lower commodity prices, since the monetary effect trumps all. The twist lies in the pricing denomination units, not in the Price Demand dynamics. An inflationary recession is deeply rooted in progress, with a depression next to occur. The price effects continue to confuse the challenged economists who have actually foreseen almost nothing in the current ongoing crisis... The honorable T-Ferguson pitched in with a comment that sets the tone. He said, "Remember Econ 101. Increasing the supply of an item decreases its value. More dollars equals a less valuable dollar. A declining dollar causes all things denominated in dollars (gold, oil, corn) to rise. The dollar is going to be declining farther with the advent of QE3. So the way must be prepared by smashing commodities first, so that they start their next upleg from a lower point. Thus, the fundamentals are overridden." Neither the demand siders nor supply siders can observe that the USDollar itself is subject to Supply & Demand dynamics, with the commodity prices as victims. The bad science artisans focus only upon Supply & Demand for the commodity, steeped in myopia. Note tragically that wages have not risen during the hyper-inflation episode that began with Quantitative Easing. Turn to my colleague and friend Rob Kirby, who always has deep insight. The Jackass yields to Kirby as a smarter expert on monetary and bond matters. He helps to comprehend the failings of the Knucklehead gang. He said, "If those Deflationist guys had any sense at all, any economics knowledge at all, they would realize that if deflation were in progress, the interest rates would be much higher. Instead, the cost of money is near 0%, which goes hand in hand with hyper monetary inflation. If cash money was dear, then the price of money would not be free. It would instead be higher than say 8% or 10%, since it would be valuable. Today, money has been trashed in a grand debasement process, where money no longer has value. This is utterly basic." My response was thanks, but such basic points are way over the heads of Deflationist Knuckleheads who are focused only on the wrecked housing market and falling final demand generally within the USEconomy. Posted by FT Alphaville By keeping the Fed's target rate at 0.00 per cent to 0.25 per cent for the next two years, he's made holding stocks much more attractive. After all, anyone holding a 2-year Treasury will suffer a negative real rate of return, therefore will scramble for yield. RBS US rates strategist Eric Hiller put it this way right after the statement: So, we know front-end yields are essentially anchored for 2-years and investors will scramble for yield and will compress all sorts of volatility measures and spreads. A month from now, we'll all ponder why we waited so long to buy risk assets, buy the belly and sell rate volatility. Currencies can continue to gyrate and long-term rates aren't anchored, but the 2-year note is gone, a function of deposit demand and cash withdrawals rather than policy expectations… Though there's more to it possibly. There has to be! The Fed has signalled low rates forever already, practically. Anyway, if you go back to Bernanke's famed 2002 speech on how central banks can curb deflation, you get some familiar hints: One approach, similar to an action taken in the past couple of years by the Bank of Japan, would be for the Fed to commit to holding the overnight rate at zero for some specified period. Because long-term interest rates represent averages of current and expected future short-term rates, plus a term premium, a commitment to keep short-term rates at zero for some time–if it were credible–would induce a decline in longer-term rates. A more direct method, which I personally prefer, would be for the Fed to begin announcing explicit ceilings for yields on longer-maturity Treasury debt (say, bonds maturing within the next two years). The Fed could enforce these interest-rate ceilings by committing to make unlimited purchases of securities up to two years from maturity at prices consistent with the targeted yields…Familiar but you can see how the logic of making it work, quickly leads to hitherto unimaginable ideas on reducing long-term rates. ...too late to buy into gold and silver? From Truth In Gold Just a quick comment on whether it's too late to buy into gold and silver or whether or not you should take some profits. The reason to own gold gets stronger everyday. Take yesterday for instance. The Fed has guaranteed zero interest rates for 2 more years. Real interest rates (nominal rates which are zero - less the inflation rate) will be negative for at least two years. Gold ALWAYS ALWAYS ALWAYS goes hgher when real interest rates are negative. Always. Negative real interest rates are like rocket fuel for gold/silver. So the Fed has now guaranteed higher gold for at least 2 years. Wait until QE3 kicks in... By Greg Hunter The gold market has been hitting one new all-time high after another because of past, present and future money printing. I think big money is panicking into the gold market for safety. Sure, the Treasury market is the biggest and most liquid on earth, but how safe is it when the U.S can print trillions of dollars at will to pay its bills? It is not the small investor that's causing $50 a day spikes in the gold price. Hedge funds, sovereign wealth funds and central banks are the ones doing the buying and shooting the gold market higher. 
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| CME GROUP hikes margins for gold Posted: 10 Aug 2011 01:51 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Effective as of the close of trading, margin requirements for gold are being raised from $6,075 to $7,425 for new positions and from $4,500 to $5,500 for "current maintenance" margins. WE had expected this to actually come a bit sooner than it did on account of the extreme volatility and extent of the intraday price moves that have recently been taking place in gold. This is a normal occurence in bull markets which begin to see large moves in price and is designed to protect the integrity of the clearing houses and of the brokerage firms, which can set their own margins for their customers. Apparently the announced hike has not impacted gold the least as it continues to trade above $1,800 at this hour and as of yet shows no sign of weakening. ...
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| Big shorts getting bolder in gold and silver, Arensberg reports Posted: 10 Aug 2011 01:46 PM PDT 9:47p ET Wednesday, August 10, 2011 Dear Friend of GATA and Gold (and Silver): Gene Arensberg's latest Got Gold Report finds the big commercial shorts getting far bolder, but he can't predict whether they'll push gold and silver back down or get overrun this time. An excerpt from the Got Gold Report can be found at its Internet site here: http://www.gotgoldreport.com/2011/08/courtesy-excerpt-of-the-got-gold-re... 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: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. 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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| Alasdair Macleod: Beyond the tipping point Posted: 10 Aug 2011 01:14 PM PDT 9:15p ET Wednesday, August 10, 2011 Dear Friend of GATA and Gold: The presentation of economist and former banker Alasdair Macleod to GATA's Gold Rush 2011 conference in London, titled "Beyond the Tipping Point," has been posted at his Internet site, Finance and Economics, here: http://www.financeandeconomics.org/Articles%20archive/2011.08.06%20GATA%... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Reports 10.97 Million Ounces Inferred An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says. The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper. Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P. For the complete press release on the Wellgreen report, please visit: http://prophecyplat.com/news_2011_july14_prophecy_platinum_new_resource_... Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: ADVERTISEMENT Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing. The conference call is 18 minutes long and you download an mp3 of it here: http://www.goldenphoenix.us/audio/GPXMCC071211.mp3 Or play back the call here: http://goldenphoenix.us/conferencecalls/ Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here:
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| CME Raises Margin Requirements on Gold and Treasuries and Energy and Swiss Francs Posted: 10 Aug 2011 01:09 PM PDT |
| Posted: 10 Aug 2011 12:50 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! August 10, 2011 03:53 PM While I note yet again I'm not an advisory service, I do know literally tens of thousands of people access my blog and would appreciate my latest views in these type of market conditions. Knowing my fan mail runs 98% thankful and 2% wish I was dead (family opinions not included-lol), I feel the 98% are deserving of an update right now. The PPT action noted in yesterday’s blog post was seen for what it was and actually made things worse when the market started trading again. Anyone who thinks yesterday 600+ turn in less than an hour wasn’t driven by the PPT team should stop reading immediately and email me about a bridge I have in NYC for sale-cheap! One thing I did discovered today is my #1 pick for Chairman, CEO and President of the “Don’t Worry, Be Happy” crowd. The author of this arti...
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| Posted: 10 Aug 2011 12:28 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Gold finished the comex session at $1776.00 up $26.00 flat. The price of silver has not joined gold as the bankers still have the shackles around its legs. It rose by only 75 cents to $38.75. The world awoke to problems with the French banks due to their huge exposure to Italy. This of course would bring down German banks as well. Let us head straight over to the gold and silver comex and see what damage our ancient metal of kings and its cousin silver did to our shorts. Read More @ HarveyOrgan.Blogspot.com
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| Swiss Capital Flows Indicate Metal Surge in Europe Posted: 10 Aug 2011 12:22 PM PDT Swiss Capital Flows Indicate Metal Surge in Europe Behavioral finance tells us that behind every mathematical proof of a financial concept is a human element. Human nature plays itself out each day, as we interact with our portfolios, investments, and the markets to find the "equilibrium price" as determined by all of our errant thoughts. By reversing the logic of behavioral finance, investors can find a better understanding of the financial markets. One topic that should earn more time in financial conversation is the ties between currency values and monetary metals. Europe in Focus In looking to the markets to understand the investor, we can look at the Swiss Franc and gold to determine what investors see in a mostly efficient market. Additionally, silver helps us to navigate the importance of finance in silver's value, as well as determine an industrial premium for its valuation. As previously reported, the Swiss Franc is the currency for anti-Euro interest. ...
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| CME Hikes Gold Margins By 22% And Gold Drops by....0.4%, Resumes Climb Posted: 10 Aug 2011 12:16 PM PDT Just after hitting a new all time high of above $1815 in spot gold, the CME immediately sent out a notice to members advising that gold margins for Tier 1 members were increasing by 22% for both initial and maintenance positions, from $4,500 to $5,500. Unfortunately for the CME, this predetermined move was telegraphed to the market weeks ago, and with rumor 57 out of 22 finally turning out correct, this latest move only managed to push gold down modestly, and at last check was once again trading above $1,800. Just like all central bank interventions, which now have a half life between 1 hour and 4 days max, so this latest exchange attempt to subdue prices will fail spectacularly. Naturally, just like in the case of silver, this will merely embolden the CME to proceed with hike after hike, which in turn will kill speculative elements while merely reinforcing the strong hands. End result: in one month gold will be above $2,000 with almost 100% certainty. In addition, the CME also hiked CHF futures by 443%, Yen futures by 25%, Ruble futures by 36%, as well as TEN, UBE and I3. The only margins that were cut were those of Uranium which dropped from 1320/1200 to 990/900 for initial/maintenance. CME notice goes out at 6:31 pm, and gold promptly resumes upward climb:
And CME notice:
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| European Bank Stress Gauges Hit Levels Not Seen Since Lehman Posted: 10 Aug 2011 12:07 PM PDT Measures that gauge level of European banks' reluctance to lend one another are approaching levels not since the aftermath of Lehman Brother collapse.
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| Ron Paul: "Gold not a bubble" Posted: 10 Aug 2011 11:44 AM PDT "What's happening today and what I see is such a serious thing is I think what we're dealing with is the end of the dollar reserve standard".
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| Gold setting new record highs above $1800 in the Kangaroo Session Posted: 10 Aug 2011 11:30 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] As trade moves into the Australian morning, gold has shot up above $1800 and has set a brand new all time high above $1,810 reaching to near $1818 as I write this. The market is accelerating higher as fear levels ramp up. It would seem that any euphoria induced from the FOMC statement of yesterday has been long forgotten as fears of European bank solvency are now taking center stage in the minds of traders/investors. There are enough rumors floating around out there that denials from large bank officials are the order of the day. Traders are fearing a type of meltdown similar to the 2008 credit crisis here in the US which was triggered when Lehman went down and a domino-like toppling of major firms commenced. Regardless of the reason, those who were trashing gold as a safe haven are now having to stutter and mutter their way back to the obvious. Not only is gold going on to make new life...
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| Posted: 10 Aug 2011 11:05 AM PDT After gold hit something like $1,775 on Monday and then fell back a bit, Patrick, a Belgian banker, emailed me this: In times as these it is great to have a vision... that way you just stay put. Otherwise I would have sold already... I replied with this: Exactly. You've got to understand the Orbital Launch Pattern aka The Inverted Waterfall Effect. ;) Bubbles don't occur when the
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| Gold Price in a Parabolic Rise, and no Telling Where it will Stop Posted: 10 Aug 2011 11:03 AM PDT Gold Price Close Today : 1781.30 Change : 41.30 or 2.4% Silver Price Close Today : 39.325 Change : 1.448 or 3.8% Gold Silver Ratio Today : 45.30 Change : -0.641 or -1.4% Silver Gold Ratio Today : 0.02208 Change : 0.000308 or 1.4% Platinum Price Close Today : 1766.80 Change : 14.30 or 0.8% Palladium Price Close Today : 725.95 Change : -1.80 or -0.2% S&P 500 : 1,120.76 Change : -51.77 or -4.4% Dow In GOLD$ : $124.40 Change : $ (9.12) or -6.8% Dow in GOLD oz : 6.018 Change : -0.441 or -6.8% Dow in SILVER oz : 272.60 Change : -24.15 or -8.1% Dow Industrial : 10,719.94 Change : -519.83 or -4.6% US Dollar Index : 74.64 Change : 0.030 or 0.0% For those who say to me, "Well, why buy gold or silver? The government manipulates those markets." today offered a lesson exactly how much good manipulation does. I doubt not that the Nice Government Men saw their opportunity after yesterday's FOMC statement to catch a bunch of people short stocks and the Plunge Protection Team dove in. They did, and the Dow ended up 429.92, 3.98%. Wow. And today the Dow lost 519.83 or 4.62% to close at 10,719.94. S&P500 did no better, losing 51.77 (4.4%) to 1,120.76. 'Tis possible to manipulate markets, but only at the margin and only for a short time. Otherwise, markets are simply too big to be forced against their primary trend. The trend will always wreak its vengeance. Stocks have now reached support that stretches back to January 2010. The area from 9600 to 10,700 might stop the fall, but then again, it might not. This is the last train out for anyone holding stocks. You sell now, or watch them wither gruesomely over the next 5 years. Stocks: they are the Vitamin D of Investment Vitamins, and the D stands for "deficiency." US DOLLAR INDEX caught today, rose 3 silly basis points to 74.635. Euro fell 1.36% to 1.4175, while for no apparent cause today a couple of rating agencies declared that France's credit rating was still AAA. Soooo, why did you need to tell us that nothing had changed, unless somebody is suspecting that something has changed? Yen rose today to 130.10c/Y100 (Y76.8/$). The GOLD PRICE rose 2.4% today, up $41.30 to $1,781.30. In the aftermarket it has risen another $20 to $1,801. Yep, it's in a parabolic rise, and, yep, no telling where it will stop. Nothing in today's chart even hints that gold's about to call a halt. It wants to go higher tomorrow. The SILVER PRICE climbed up off yesterday 3700c bottom and never looked back. Should also climb again tomorrow. Lost 149.7c yesterday, gained 144.8c today to close Comex at 3932.5. Maybe, maybe Friday's 3750c and yesterdays 3700c formed a double bottom? To me silver appears to have more downside. Hard above at 3970c lies its 20 day moving average. How will it act there tomorrow? The SILVER PRICE has done nothing to gainsay or negate the downtrend begun five days ago, and must climb above 4229c to do so. The economy and monetary system has reached a new stage of decay where its condition deteriorates faster and faster. Not world wide panic yet, but daily unthinkable milestones whiz by and are left behind: Greece defaults, US debt ceiling crisis, US debt downgrade, gold passes $1,700 then $1,800, stock market falls 500+ points a day. Oh, this will ease off, but the decay has ratcheted to a higher, faster level. Y'all ought to remember that for a long time you can see bad things coming on the horizon, but they seem to linger there. Oh, you know they're coming, but you've got plenty of time. Then one day the fellow in the high-top boots and peaked cap comes to arrest YOU. As I said, only way I know to stay out of bar fights is to leave the bar before the fights start. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 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. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. 
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| Posted: 10 Aug 2011 10:21 AM PDT |
| 5 Reasons Why American Riots Will Be The Worst In The World Posted: 10 Aug 2011 10:07 AM PDT by Silver Shield, Dont-Tread-On.Me:
America is still in deep denial which is still the first stage of the Awakening. This denial will be wiped away when the dollar collapses. For now the economy is still functioning with food and fuel available. Americans still have the illusion of wealth and normalcy. They still are stuck in the false left right paradigm and think some other sock puppet will turn things around.
When the dollar collapses, all American illusions will collapse with it. Deep denial will turn into deep anger. The violence I expect in the other 3 areas on the list and all urban areas in the US, will make all other global riots pale in comparison. America is deeply infused with arrogance, denial, narcissism, drugs and violence. There is no other society that I know of that has the degree of intensity and combination of these factors. "We're Number 1! We're Number 1!"
This American arrogance will be turned on to other Americans as the dollar collapses. We will no longer be able to maintain the global empire of force without a functioning currency. All of our troops will be forced to come home and we will no longer be able to import 25% of the world's oil. This sudden shift will turn arrogant Americans on each other as they seek to enforce their inflated sense of self worth on to others. They will think that somehow the world somehow owes them something and they believe that lesser people should make that sacrifice for them. After all, the American way of life is not negotiable… at least that's what Dick Cheney said. "Everything is fine today, that is our illusion." -Voltaire
"You can ignore reality, but you cannot ignore the consequences of reality." Ayn Rand The dollar collapse will end the ability of the average American to deny their active or passive participation in the dominance of the world by spreading debt and death. When people's entire life's savings are wiped away, they will wonder what their life has been all about. All of the missed times with their family and connections with others has been stained by the pursuit of material gains. Only when everything is taken from them, will they start to see the real importance of life. Many will not be able to come to terms with this coming reality. Those that are aware and prepared stand a great chance of making it through this paradigm shift and thrive. (Join the Sons of Liberty Academy.)  Why am I not happy? 3. Narcissism- The amount of narcissism in America is epidemic. The fascination with celebrities and their clothes consumes so many women. Men are addicted to worshiping sports figures. We have this fear of competition and view others as enemies. This leads to shallow and transitory relationships. Americans consume their way into debt as they try to create an outer facade to hide a void in their vapid lives. The Baby Boomer generation is known as the "Me" generation. Their obsessive pursuit for material possessions was matched by their embrace of debt. The dollar collapse is going to hit the Baby Boomers the hardest as they are forced to come to term with the trail of pain they have left in their wake. Broken families and debt are just the tip of the iceberg. The war and debt machine they enabled and unleashed upon the world is a much harder reality they will have to deal with. The real problem is the sad fact that many of them will be too old to have a second chance on life. 4. Drugs- Millions of Americans turn to drugs to fill the void of true purpose in their lives. Instead of dealing with a past a hurt or seeking a higher purpose in their lives by helping others and using their natural talents to make a better world, people turn to drugs. The worst kind of drugs are the ones that people believe are making them better. The powerful psychotropic drugs like Selective Serotonin Reuptake Inhibitors (SSRI) or more commonly known as anti-depressants. These drugs are extremely powerful and can cause psychotic breaks that lead to violence. Go to http://ssristories.com/ to see the list of nearly 4,300 cases of crime related to these drugs. These stories include everything from the Virginia Tech shooting to the mom that drowned her 5 kids in the bathtub. I would say that these drugs are much more dangerous than guns, because they cause the people to break from reality and cause the violence. I don't have time to go into the mass medication of America and the real reason why Marijuana is illegal, but I do want to warn everyone of one thing. Nearly 10% of the country or 27 million Americans are on these drugs. Knowing that there is only a one month supply in the system and the kind of psychotic breaks that will happen if people come off these drugs too fast, this is definitely not a good thing. When the dollar collapses, we not only have to worry about the 7 to 10 day supply of food and fuel in the system, we really need to worry about the 1 in 10 Americans who are not going to be medicated while their world paradigm collapses. I can see it now, humanitarian airlifts dropping Zoloft and Lexapro from the sky… 5. Violence- Violence has been apart of our American culture since the beginning of our country. We have the most armed population and the highest crime rates in the world. The violence we will see in some parts of America could become as bad as the Reign of Terror from the French Revolution. I wrote the 2 Coming American Revolutions. One Revolution will embrace founding fathers vision of Life , Liberty and the Pursuit of Happiness. The other Revolution will be some collectivist vision of coercion and fear. Some parts of this country will confront the new post-dollar paradigm by embracing freedom and honest money. Others will try to hold onto power by becoming more tyrannical and finding enemies within their neighbors. We are surrounded by violence and have been desensitized anti social behavior. Our movies and video games show the killing of others but rarely the consequences of those actions. Even other anti social behavior has been normalized. I even realized my favorite show of all time Seinfeld was all about normalizing anti social behavior. The series finale was based on a man getting mugged and all 4 main characters not only not helping the man, but actually making fun of the man as he is violently robbed. This lack of empathy is at the root of our problems. So here we now have a society that not only cares only about themselves and their materialistic needs, we also have a society that no longer cares about other's feelings. The American riots will be the worst the word has seen because of the amount of will be of arrogance, denial, narcissism, drugs and violence in our society. These factors are systemic and infect every level of society. I do fear that our nation is sick enough to unleash a series of false flag events to spread our violence even further. This violent Anger phase in the 5 Stages of the Awakening will not last long and not happen in every part of America. There will be a few months of violence that will shake the faith in mankind. Those that live by the sword, will die by the sword. After the most violent are either killed, brought to justice or burnt out, we will enter in a societal depression as we try to come to terms with what has happened. This period could last for years as we struggle with the loss of wealth and life. I am hopeful that this collapse will actually be the beginning of something really great for mankind. A new paradigm not based on debt and death is a very real outcome of this collapse. With the collapse of the dollar, those that were lured into a senseless narcissistic consumer lifestyle will be forced to come to the understanding that instant gratification is not why we are put on this earth. Those that were ill prepared for the collapse will start to ask questions, then they will seek answers, then they will want blood. The Elite that created, perpetuated and profited off of this paradigm will be running for cover as the world wakes up to what they have done. It will be nice to have consumerism, militarism and narcissism flushed away. (Read Resonate IV) This collapse will not result in a One World Order. The Elite that are trying desperately make this happen will no longer be able to operate in secrecy. Their minions will lack any legitimacy with the people they rule. After all who is going to trust a President who says he did not see this coming when you and I can see it coming from miles away. The result after a very violent Anger phase is going to be massive decentralization of power not more centralization of power. Local communities, cities counties and states will assert more power over the daily activities of our lives. Some will will slip into tyranny to make order out of chaos. Others will attract the best and brightest by embracing freedom and honest money. The end result is a life where we can reach our highest and best self. How we get there is a rough road, but one I feel is easily traveled if you are aware and prepared. Wake Some People Up! Click Here for the original source. http://dont-tread-on.me/5-reasons-why-american-riots-will-be-the-worst-in-the-world/
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| Global Banking Crisis Fears Lurch to the Foreground Posted: 10 Aug 2011 09:26 AM PDT August 10 (CNBC) — Fears of a new global banking crisis moved to the foreground Wednesday and are driving investors out of stocks and into safe-haven Treasurys, gold and Swiss francs. The catalyst was an idea that's been circling markets for several weeks—that France is next in line to lose its triple-A credit rating now that the U.S. has been downgraded. Bank stocks, which had recovered some of their steep losses in the afternoon, sold off sharply in another wild ride lower into the closing bell. The S&P financial sector was down 7.1 percent Wednesday, and is now down 9.5 percent for the week and more than 23 percent year-to-date. Banks were the worst performers in the stock market, which also closed with steep losses. The Dow was down 519 points at 10,719, its second more than 500-point loss in three days. The S&P 500 was down 51 at 1120.
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| Posted: 10 Aug 2011 09:16 AM PDT London Trader – Many Gold Shorts Wiped Out, Lost Everything!
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| The Effects of a Financial Repression Posted: 10 Aug 2011 09:00 AM PDT Something — we're not altogether sure what — touched off MSNBC's Dylan Ratigan yesterday. We love it when these guys lose their cool. This is not nearly as entertaining as Jim Cramer's tantrum imploring the Fed to "open the discount window" in 2007, but pay attention to the content…
(Also watch the faces of the support staff behind him! Heh…) We're not 100% sure what Mr. Ratigan means by "extraction." "Privatized profits, socialized risk" is a theme you should be familiar with here in The 5. "Financial repression" is another we heard a lot about during the Symposium in Vancouver. "Extraction" sounds more like a dental procedure, but from the context, we believe he means a class of financial engineers intentionally stripping the productive classes of their remaining assets. That's our best guess… considering his rant came two hours after the Federal Reserve made its own extraction plans known to the world. Yesterday, the Fed put savers on notice: You're screwed for the next two years. At least. The pertinent background: On Dec. 16, 2008, the Federal Reserve launched the first round of "quantitative easing," accompanied by a decision to slash the federal funds rate to an unprecedented 0-0.25%. The Fed statement said conditions would warrant these "exceptionally low" levels "for some time." On March 18, 2009, the Fed sought to be more precise in its time horizon, promising these "exceptionally low" levels "for an extended period." Every six weeks, the same language has turned up in the Fed's statements — an all-too-easy source of mockery for your 5 Min. editors. Yesterday, the fun stopped. Now there's an actual date (well, year, anyway) attached to the "extended period." Boo. "The committee currently anticipates that economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013." There you have it: The Fed has acknowledged the economy is going to be jonesin' for at least two more years and will require the IV drip of near-zero interest rates just to stay alive. Following the Fed's decision, the yield on a 10-year Treasury note sank to 2.14%. That's only 7 basis points away from the all-time panic low reached a couple of days after that first QE declaration from the Fed in December 2008.
More to the point, the Fed has made it plain that savers will continue to be relentlessly flogged. "From this day onward," wrote former hedge fund manager Bruce Krasting at his blog last night, "every buy-and-hold investor who acquires Treasury debt with maturities of less than five years is guaranteed to lose money." This is the reality of something we discussed in Vancouver last month: Financial repression. The Fed will keep interest rates artificially low so the Treasury can keep its own debt service costs down. The Treasury Department blows through $3.8 trillion in a year on $2.2 trillion revenue. But at the moment, barely 5% of that total goes toward interest payments on the debt they issue to make up the difference. That's a sweet deal. Treasury officials would love to keep the drip going for as long as possible. Good for the Treasury, not so good for you… because it means you get still more in the way of "negative real interest rates." This morning, a 5-year CD yields 2.25%. But consumer prices are running at a 3.6% annual clip. So your CD is actually losing you 1.35% in purchasing power… before taxes. That's financial repression. To borrow a phrase from the computer world, this isn't a bug: It's a feature. The Fed is purposely forcing you "out onto the risk curve" so that prudent savers will buy stocks and prop up the stock market. In another 2007 flashback, Alan Greenspan accidentally gave away the game in his Daily Show interview with Jon Stewart:
We featured the segment in I.O.U.S.A. despite Greenspan's own proclamations in the film that "without savings, there would be no future." "In a negative rate world," said David Franklin of Sprott Private Wealth during the Symposium in Vancouver, "speculation must be part of your portfolio." And gold is the safest among those speculations. Sure enough, gold is powering to new highs… again. The spot price crested $1,800 briefly today, later pulling back to $1,777. Only 72 hours ago did the price break through $1,700 for the first time. Regards, Addison Wiggin, The Effects of a Financial Repression originally appeared in the Daily Reckoning. The Daily Reckoning provides 400,000+ readers economic news, market analysis, and contrarian investment ideas. Follow the Daily Reckoning on Facebook.
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| Michael Ballanger: Market Conditions Extremely Gold-and-Silver Friendly Posted: 10 Aug 2011 08:40 AM PDT As of this morning, I restated my "Buy the TSXV" recommendation based (largely) on the same reasons that I stated back in May. Until U.S. real estate turns, the U.S. economy is growing at structural stall speed. Until we see consecutive monthly rises in the Case-Schiller Home Price Index, policymakers—led by the Federal Reserve Board, the U.S. Congress, the European Central Bank, the People's Bank of China and every other individual who has never met a payroll in their lives—are going to embark on policies that are extremely gold-and-silver friendly. The Fed announcement Tuesday afternoon turned markets sharply higher, thus reinforcing my comments back in May that we will see as many periods of quantitative easing as necessary until the real estate market in the U.S. (and Europe) improves. Now—as for the gold stocks—NEVER in my 35 years in this industry have I ever seen them so incredibly disconnected from the underlying commodity that they produce. In the past 72 hours, the fundamen...
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| Thom Calandra views silver in the context of GATA's London conference Posted: 10 Aug 2011 08:25 AM PDT 4:23p ET Wednesday, August 23, 2011 Dear Friend of GATA and Gold (and Silver): Stockhouse's Thom Calandra reports today on GATA's Gold rush 2011 conference in London and then turns to some observations about silver and silver miners. Calandra's commentary is headlined "Silver Mining Stocks as Seen in the Front Mirror" and you can find it at Stockhouse here: http://www.stockhouse.com/Columnists/2011/August/10/Silver-mining-stocks... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing. The conference call is 18 minutes long and you download an mp3 of it here: http://www.goldenphoenix.us/audio/GPXMCC071211.mp3 Or play back the call here: http://goldenphoenix.us/conferencecalls/ Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here: Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: ADVERTISEMENT Prophecy Platinum Reports 10.97 Million Ounces Inferred An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says. The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper. Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P. For the complete press release on the Wellgreen report, please visit: http://prophecyplat.com/news_2011_july14_prophecy_platinum_new_resource_...
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| The ECB's only choice is to protect the banks Posted: 10 Aug 2011 08:19 AM PDT (This article can be found on the FinanceAndEconomics website here) The ECB is under great pressure from all sides to rescue Euroland’s sovereign debtors with a round of quantitative easing. Such a solution is totally against the principals and charter of the central bank, and has so far been resisted, the ECB only buying debt in the secondary market to lower the apparent cost of funding for stricken governments. This is little more than a sop, because no investor in their right mind would buy government debt at a price artificially inflated by ECB purchases. And nor should the ECB encourage banks that continue to buy bonds issued by insolvent governments. The clamour for QE is entirely Keynesian. The simple answer is that indebted governments must cut their spending, and hard. By doing so, much needed economic resources will stay in their private sectors, which can lead to a surprisingly rapid recovery: look at Iceland, which was forced by reality to bite the bullet and whose economy is already recovering. But this simple answer does not fit into Keynesian ideals, which merely dismiss the private sector as having lost its animal spirits, and therefore, they argue, it is the duty of the public sector to take charge. It was hair-brained Keynesian economics and socialism that got Europe into this mess in the first place, and this should weigh on the realists at the ECB in their deliberations. They now have the practical task of keeping the banking system intact. They cannot finance, or even part-finance, Euroland’s government deficits as well. Just underwriting Euroland’s banks might require up to a trillion euros, which is inflationary enough; pumping money into insolvent governments ad infinitum will involve considerably more. These governments are looking for a soft touch: they have found it in the European Financial Stability Fund, but that is too small for their continuing negative cash-flow. The Chinese, after expressing initial interest just to annoy the Americans, have backed off. The PIIGS are now offering their begging-bowls to the ECB. However, printing money for governments to spend is the high road to hyperinflation. The ECB are therefore likely to say no, to the disappointment of Keynesians and socialists alike. If the ECB does refuse to subscribe for new government paper, the PIIGS governments will at last be forced to face up to the reality of their financial position. And who knows, if one of them gets real, the others might follow. Keynesians everywhere will probably advise them to leave the euro in favour of their old softer money. This is like advice to a chess player from someone who can barely think one move ahead, because it would leave liabilities in hard euros, and future funding in a collapsing drachma, punt, lira, peseta or whatever. While exiting the euro would rapidly force a default on any of the PIIGS ejected from the sty, it would also offer the prospect of hyperinflation for the ejected, and the position of Euroland’s banks would probably be worse than if they stayed. By dealing with the European banking crisis in this way, the ECB will then be able to tackle the separate issue of exchange rate policy, which is another problem lurking in the background. With the world on a dollar-standard and the Fed printing money with gay abandon, the euro will continue to be strong. This will intensify political pressures on the ECB from all Euroland governments, worried about terms of trade. That is a totally separate issue and should not be confused with the immediate problem. The ECB’s decision in this matter will be for the markets a decisive indication of the course of future euro inflation. 10 August 2011 Alasdair Macleod 
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