Gold World News Flash |
- David Morgan: Deflationary Wave Coming, Silver Explodes Under Hyperinflation
- SGT Speaks With Tekoa Da Silva About Post 9/11 Tyranny, Precious Metals & Other Issues
- Is Gold a ?Greater Fool? Asset?
- Interview with Jeff Nielson: SLV Scam Explained – Inventory Fraud
- Bachmann Wins Ames Straw Poll With 29% Of Vote, Ron Paul Takes Second With 28%
- PRIMED FOR A TREND REVERSAL
- Demand for real metal is crushing paper, Ben Davies tells CNBC Asia
- Weekly precious metals review at King World News
- COT report update, QE3 possibly already commenced
- Edmund Conway: Abandoning gold standard was a fatal move we're all paying for now
- Sprott's Embry interviewed by GoldMoney's Turk at GATA's London conference
- Guest Post: If The Market Crashes, Who Owns Enough Stock To Even Care?
- This Past Week in Gold
- [TaM-1202] The Truth About The Holy Dial Tone – 13 August 2011
- John Embry interview with James Turk at GATA's Gold Rush 2011
- Sell Your Gold Now ? and Buy Its Producers Instead! Here?s Why
- Wall Street Bailout: Too Big To Collect?
- How America Could Collapse
- Eric Sprott Interview with James Turk
- The Best of the Week
- Gold, US Dollar...and the "Greater Depression" - Doug Casey
- Abandoning the gold standard was a fatal error we're now all paying for
- Recessionspotting: "You Are Here"
- Recessionspotting: "You Are Here"
- Gold will be the safe haven in the coming meltdown
- Last Week's Market Rout In Sector-Beta Perspective
- Last Week's Market Rout In Sector-Beta Perspective
- Physical gold demand is taking over
- Indian Gold Demand Soaring
- Things
| David Morgan: Deflationary Wave Coming, Silver Explodes Under Hyperinflation Posted: 13 Aug 2011 04:21 PM PDT from ContraryInvesting: Tekoa Da Silva of Contrary Investors Cafe talks to David Morgan of Silver-Investor.com.
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| SGT Speaks With Tekoa Da Silva About Post 9/11 Tyranny, Precious Metals & Other Issues Posted: 13 Aug 2011 02:56 PM PDT SGT Speaks With Tekoa Da Silva of Contrary Investors Cafe.com about a wide variety of issues.
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| Is Gold a ?Greater Fool? Asset? Posted: 13 Aug 2011 02:03 PM PDT I believe the terminology “investing in gold” is a misnomer.**Speculation is a better fit for the argument to own gold than considering it an investment. [Let me explain.] Words: 606 So says Glen Bradford ([url]www.glenbradford.com)**[/url]in edited excerpts from*an article* which Lorimer Wilson, editor of www.munKNEE.com (It's all about Money!), has further edited ([* ]), abridged (…) and*reformatted*below**for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.*Bradford goes*on to say: What would you would be willing to pay for an ounce of gold if one individual decided to acquire all of the gold in the world and bury the cube underground? I believe that at that point in time, gold would cease to be a store of value. Right now, all the gold in the world allegedly fits into a 67-foot cube. Half of the gold out there is owned by central banks. Who in the...
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| Interview with Jeff Nielson: SLV Scam Explained – Inventory Fraud Posted: 13 Aug 2011 01:05 PM PDT YouTuber 'BigDad06' interviews Jeff Nielson of Bullion Bulls Canada about the SLV fraud and other precious metals news.
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| Bachmann Wins Ames Straw Poll With 29% Of Vote, Ron Paul Takes Second With 28% Posted: 13 Aug 2011 11:39 AM PDT
More from The Hill:
As for Paul...
Of course, if Paul were to eventually become president, we would advise him to not come within 100 miles of any school book depositories. Also to avoid prepared food, theaters, public speeches, pope mobiles (in fact any form of transportation that goes over 15 mph), to run like the wind from any and all hot tubs, jacuzzis, swimming pools, and baths, and in general to conduct his long overdue gold standard policy from a bunker several miles underground if possible. Alas, this may all be just a tad optimistic.
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| Posted: 13 Aug 2011 11:03 AM PDT "Liquidity will eventually find its way into undervalued assets" Gary Savage I think it's time for liquidity to drain out of gold and flow back into a severely beaten up stock market. Depending on how quickly the market tests the 200 day moving average will likely determine whether or not it can make marginal new highs before resuming the cyclical (and secular) bear trend. More in the weekend report...       
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| Demand for real metal is crushing paper, Ben Davies tells CNBC Asia Posted: 13 Aug 2011 10:45 AM PDT 6:44p ET Saturday, August 13, 2011 Dear Friend of GATA and Gold: Fresh from his appearance at GATA's Gold Rush 2011 conference in London, Hinde Capital CEO Ben Davies flew to Asia and ended up on CNBC Asia in Singapore, where he got a minute to explain to that part of the world the difference between paper gold and real metal and how demand for the latter is crushing the former. The segment is a little less than four minutes long and you can watch it at the CNBC archive here: http://video.cnbc.com/gallery/?video=3000038374 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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| Weekly precious metals review at King World News Posted: 13 Aug 2011 10:27 AM PDT 6:27p ET Saturday, August 13, 2011 Dear Friend of GATA and Gold (and Silver): Bill Haynes of CMI Gold & Silver and futures market analyst Dan Norcini make sense of another wild week in the precious metals during the weekly review at King World News here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/13_K... 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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| COT report update, QE3 possibly already commenced Posted: 13 Aug 2011 10:27 AM PDT From SilverGoldSilver Okay, obviously this week has been one for the records books as the Bears 7 video said it would be. Maybe not to the death and murder tune, but a few bankers, as you are about to see got smoked this week in Gold. Gold COT report: Large specs have sold off 32,586 [...] 
This posting includes an audio/video/photo media file: Download Now | ||
| Edmund Conway: Abandoning gold standard was a fatal move we're all paying for now Posted: 13 Aug 2011 10:24 AM PDT By Edmund Conway http://www.telegraph.co.uk/finance/comment/edmundconway/8699815/Abandoni... That's right: Come Monday morning we will have managed to survive four decades of fiat money -- though, given the chaos in markets in recent weeks, it is anyone's guess how much longer it will last. On August 15, 1971, with the US public finances straitened by the cost of the war in Vietnam, Richard Nixon finally cut the link between the US dollar and gold. Until then, the US Treasury was duty-bound to exchange an ounce of gold with central banks willing to pay them $35. Suddenly, for the first time in history, the level of the world's currencies depended not on the value of gold or some other tangible commodity but on the amount of trust investors had in that currency. Central banks were allowed to set monetary policy based on their instincts rather than on the need to keep their currency in line with gold. It was one of those seminal moments whose significance has only gradually become apparent, obscured as it was at the time by Vietnam and then Watergate. But the more one examines economic history, the more obvious it is that this was one of the most important policy decisions in modern history. Were it not for that decision, it is quite feasible that we would not have suffered the financial crisis of the past four years; or indeed the crisis after crisis that have beset the world's markets. We might not have just faced the most volatile few weeks in markets since 2008. ... Dispatch continues below ... 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. Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank 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 It isn't that the previous Bretton Woods regime -- in which currencies around the world were also pegged to gold, by way of the dollar -- was perfect. Far from it. But understanding the problems with the imperfect international monetary system we inherited from Nixon can help enlighten us on so many of the fundamental problems the world economy is facing: Why, for instance, does the West borrow so much and the East save excessively? Why do we seem to be fighting a losing battle with inflation? Why is protectionism on the rise again? Let's start with first principles: For as long as anyone can remember, politicians have sought to spend more than they can afford. Since the invention of money they have discovered ever more ingenious ways to do so. The initial method involved debasing the currency. Henry VIII earned his nickname "Old Coppernose" because he added so much copper to what were supposed to be silver coins that eventually it would show through on the nose of his portrait. These bouts of debasement typically end in disaster, as faith is lost in the currency, inflation shoots through the roof, and the economy collapses, after which politicians introduce a new, more credible system. After trust evaporated in gold and silver coinage, we had the gold standard and then the Bretton Woods system and now, today, fiat money -- but the routine is painfully familiar. The main difference with fiat money is that whereas under the gold standard it was all too obvious when politicians were spending beyond their means (they would simply run out of gold reserves), these days it is slightly more difficult to tell quite how close the system is to breakage. Nonetheless, as we look back at the chaos of the past few weeks, it is quite clear that our current version is on its last legs. This, in essence, was the point Sir Mervyn King tried to make again and again in the Inflation Report press conference last week: 2008 was only one stage in a far bigger crisis of confidence in the way we have structured the world economy. Over the past 40 years, in the absence of a coherent international monetary system and under the veil of floating currencies, countries that would otherwise have been penalised for doing so were allowed to borrow enormous amounts (among others, the US and UK, or Greece). Other countries (China or Germany) indulged them by lending enormous amounts. In the meantime, investors convinced themselves that the apparent economic growth fuelled by this debt was genuine rather than an artificial product of a binge. The 2008 crisis represented the first recognition that those increases in asset prices and economic growth were chimerical. The recent relapse represents a recognition that the losses have merely been transferred on to sovereigns' balance sheets. But what next? The Panglossian answer is that those imbalances are slowly but surely put right: Indebted countries borrow less and repay their creditors. But countries rarely go gently: What seems more likely is that the next stage of the crisis represents a crisis of confidence in the very system that, founded as it is on trust rather than measurable yardsticks, has no reliable, in-built way of righting itself. So are we nearing the end of this economic era? All the hallmarks are there. We've been through the periods of faith in the system, peaking with the certain belief in the 1990s and early 2000s that inflation targets really would help keep governments on an even keel. We've had the financial crisis that usually marks the beginning of the end of established monetary systems. And now we are seeing the debasement. Consider the price of gold, which has recently scaled new highs. Since the 1970s the price per ounce has risen from below $40 to an astonishing $1,740. The price reflects many factors, including economic growth, but chief among them is a diminishing faith in the ability of fiat currencies to maintain their value. Ignore the oil price shock and the mild fluctuations over time: It is no coincidence that the price really started to spike (in other words faith in currencies versus gold plunged) in 2001, which just so happens to be the year central banks first started experimenting with quantitative easing (QE) -- in Japan. That the price has since reached record highs as the Bank of England and Federal Reserve followed suit by printing money more recently reinforces the point. Even the European Central Bank has now gone one step closer towards QE (bringing it to what Sir Mervyn called "the outer limit of what a central bank can do") by agreeing to buy up Spanish and Italian debt. No doubt gold is in a bubble, but all bubbles start with the germ of a good idea, which in this case is that the present system for running the world economy is close to breakage. It would be nice to believe that policymakers could ferret their way out of their current pickle without further debauching their currencies, but, politically at least, that is always the easy way out. Unfortunately, currency debasement is a competitive sort of thing, as countries vie to reduce the value of their money (and hence their debt). There has been some talk of "currency war" in recent years, but this is nothing in comparison with the competitive devaluation and protectionism in the 1930s as the inter-war gold standard came to an end. However, the precedent is ominous. As ever these days, any hope, such as it is, lies in China. It is fast realising that its investment in US debt will not be fully repaid. However, in the long run it has two options: to allow the US to debase or default; or to negotiate, forgive a chunk of the debt, and dramatically reduce those imbalances. It can afford to do so economically; whether it can afford it politically is another question. However, such a bold move (and I do not expect it any time soon) would at least mark a fitting gesture from an economy that will help construct the next international monetary system. 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 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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| Sprott's Embry interviewed by GoldMoney's Turk at GATA's London conference Posted: 13 Aug 2011 09:56 AM PDT 5:58p ET Saturday, August 13, 2011 Dear Friend of GATA and Gold: Interviewed by GoldMoney's James Turk during GATA's London conference last weekend, Sprott Asset Management's chief investment strategist, John Embry, discussed gold, silver, currencies, remarks made at the conference by other speakers, and the gold and silver price suppression scheme. The interview is 26 minutes long and you can watch it at the GoldMoney Internet site here: http://www.goldmoney.com/video/embry-turk-interview.html 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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| Guest Post: If The Market Crashes, Who Owns Enough Stock To Even Care? Posted: 13 Aug 2011 09:22 AM PDT Submitted by Charles Hugh Smith from Of Two Minds If the Market Crashes, Who Owns Enough Stock to Even Care? Since 81% of all stocks are owned by the top 10%, a stock market crash has little effect on the bottom 90% of Americans. It is assumed without question that the stock market is some quasi-sacrosanct barometer of the U.S. economy. But who even cares if the market crashes? Only the top 10% who own it. Yes, millions of (generally government) workers have an indirect stake in stocks and bonds via their state/union pension funds, but it's still informative to look at the distribution of who actually has a stake in the market's rise and fall. This data is from pre-recession 2007, so I suspect ownership has become even more skewed to the top 5% as those below liquidated stocks to pay the bills as household income and housing equity plummeted. A severe decline in the "wealth effect" would probably crimp the top 10% tranche's carefree spending, which accounts for some 40% of the nation's consumer spending. If the market crashes, high-end retailers and restaurants would likely see sales fall significantly. While there would be consequences, we should be careful not to overstate the stock market's role in the nation's Main Street economy. And what are the chances of a real crash? For insight, we turn to the The Chart Store's chart overlaying the current rally and collapse with the Dow circa 1907. The similarity is rather uncanny: The past is simply one possible pattern of many to consider, but the remarkable similarity of these two charts suggests that there may be more downside ahead. One last point: those who exited the stock market won't care if it crashes because they opted out of playing the risky game altogether.
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| Posted: 13 Aug 2011 09:16 AM PDT Summary: Long term - on major buy signal. Short term - on mixed signals. We took profits these past two weeks and shall now wait for new signals and set ups. Read More...
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| [TaM-1202] The Truth About The Holy Dial Tone – 13 August 2011 Posted: 13 Aug 2011 08:06 AM PDT Stacy Summary: The Truth About Markets. We talk about the London riots, market meltdown, the holy dial tone and more. Download show here For more download & listening options, visit Archive dot org UPDATE: Notice that due to PUBLIC wrath, … Continue reading
This posting includes an audio/video/photo media file: Download Now | ||
| John Embry interview with James Turk at GATA's Gold Rush 2011 Posted: 13 Aug 2011 08:01 AM PDT from GoldMoney.com: John Embry (www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about the price of gold and the US debt downgrade. They discuss Sinclair's $1,764 level and how the majority of observers still disparage gold, even if perception is slowly changing. They explain how the physical gold market is taking charge of gold price discovery and how strong physical demand will drive the price much higher. They talk about how the price of gold will react in another market meltdown, similar to 2008, and whether there will be a sell-off. They conclude that this time the flight to safety will be more important than the rush for liquidity and that gold is uniquely placed to act as a safe haven, especially with T-bills and other traditional safe assets discredited by US debt issues. John and James explain how important it is to own tangible asset that are free of counterparty risk. They also talk about some relatively safer currencies like the CAD, AUD and CHF, and conclude that, although better than the US dollar, they also have their flaws. They talk about mining stocks and how undervalued they are. They mention key levels to watch in the XAU and HUI, as signals of a start to the mining stock rally. They move on to look at sovereign debt issues and how they expect other countries, like the UK, to suffer downgrades soon as well. John also explains that China, despite its huge potential, is not without issues and he fully expects to see a lot of instability there. This interview was recorded on August 5 2011 in London. Click Here for the original source. http://www.goldmoney.com/video/embry-turk-interview.html
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| Sell Your Gold Now ? and Buy Its Producers Instead! Here?s Why Posted: 13 Aug 2011 07:51 AM PDT I believe that the masses are stumbling over themselves to buy gold when the far better value is to own the companies that control so much of the supply. I will probably be pilloried for this by the gold bugs, but I'm going to hold my ground: now is not the time to buy gold and it may be a great time to sell it. Words: 435 So says Brett Korsgaard**in edited excerpts from*an article* which Lorimer Wilson, editor of www.munKNEE.com (It's all about Money!), has further edited ([* ]), abridged (…) and*reformatted*below**for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.*Korsgaard goes*on to say: As Warren Buffett stated in 2010 when gold could be had for less: [INDENT]You could take all the gold that’s ever been mined, and it would fill a cube 67 feet in each direction. For what that’s worth at current gold prices, you could buy all — not some ...
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| Wall Street Bailout: Too Big To Collect? Posted: 13 Aug 2011 06:09 AM PDT  By EconMatters
The Treasury Dept. already declared milestone reached in June, 2010 when "Repayments to Taxpayers Surpass Tarp Funds Outstanding." New York Times and CNNMoney both keep stattistics of the bailout and tell a different story from the government's account. NYT says fund outflow has amounted to $550 billion, funds returned is $70.1 billion, that leaves amount outstanding $480 billion. CNNMoney data suggest $475 billion out of the door, $118.5 billion returned, netted to $357 billion still needs to be collected.
The spreadsheet downloaded from Pro Publica shows the top 5 bailout deadbeat recipients--Fannie Mae, AIG, Freddie Mac, General Motors, and GMAC (now Ally Financial)--account for almost 97% ($232 billion) of the total net amount still outstanding. pointing to an actual total still outstanding at $1.5 trillion (See Chart),
CMD keeps a list of 'Total Wall Street Bailout Cost' here, but not down to the detail recipient level. CMD's analysis also shows that most of the bailout funds were comprised of aid to banks, in the form of loans with below-market interest rates and for questionable collateral to banks directly from the Treasury and Federal Reserve (See Chart).
The $4.8 trillion bailout of the financial sector, according to CMD, also dwarfs the $600 billion that the Federal Reserve spent on the QE2 that was intended to stimulate the broader economy. Andrew Ross Sorkin at NYT also pointed out that when WSJ quoted the U.S. Treasury that "the projected cost of the bailout is shrinking" to $89 billion from an earlier estimate of $250 billion (see graph below),
So it looks like the bailout could have different ROIs (return on investments), depending on what you count as "investments." Fannie and Freddie just recently asked for $7 billion more bailout funds, and looking at the domestic housing market and the current economic outlook, American taxpayers probably should consider it a draw even if just no future funding will be directed to the two government-sponsored housing entities, let along expecting a single dime coming back form Fannie and Freddie. But the sad thing is that even if Uncle Sam gets to collect the whole 1.5 trillion as calculated by the CMD, it would not have made a difference in the debt and deficit of the U.S. government (as the S&P Rating Agency has taught us.) Further Reading: Tracing America's "Too Big To Fail" Crisis: An Infographic Fadel Gheit Throws Wall Street's Big Banks Under The Oil Speculating Bus EconMatters | Dynamic View. | Facebook Page | Twitter | Post Alert | Kindle
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| Posted: 13 Aug 2011 05:33 AM PDT  User submitted - Article Matt Stoller Scarce domestic manufacturing leaves the United States highly vulnerable to accidents and problems abroad. A few months ago, a friend in the entertainment industry told me of a new business model in Hollywood: hoarding videotapes. Apparently, the earthquake in Japan knocked offline a Sony factory that makes certain types of tape. That factory was also in the tsunami zone, so now there's a serious tape shortage threatening the television industry. The NBA scrambled to get enough tape to broadcast the NBA finals; one executive told the Hollywood Reporter, "It's like a bank run."….. Worryingly, there's been very little consideration of how systemic collapses can happen in another, perhaps more dangerous realm—the industrial supply system that keeps us in everything from medicine to food to cars to, yes, videotape. In 2004, for instance, England closed one single factory, which caused the United States to lose half of its flu vaccine supply…… 
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| Eric Sprott Interview with James Turk Posted: 13 Aug 2011 04:45 AM PDT Eric Sprott (www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about how there isn't enough silver in the silver market to back existing 'paper silver' commitments. ...
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| Posted: 13 Aug 2011 04:00 AM PDT Author: Vedran Vuk Synopsis: Welcome to the weekend edition of Casey's Daily Dispatch, a compilation of our favorite stories from the week for the time-stressed readers. Dear Reader, Welcome to the weekend edition of Casey Daily Dispatch, a compilation of our favorite stories from the week for the time-stressed readers. Of course, if you want to read all of the Daily Dispatches from the week, you may do so in the archives at CaseyResearch.com. Why You'll Still Be Buying Gold at $2,000 By Jeff Clark I was recently asked in an interview if I thought gold was going to $5,000 an ounce. "No," I said bluntly. "I think it's going higher." "You're that optimistic?" "No," I replied. "I'm that pessimistic." Imagine the condition of our world if gold reached $5,000 an ounce – and kept soaring. We'll likely be in a mania if that happens – but what kind of m...
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| Gold, US Dollar...and the "Greater Depression" - Doug Casey Posted: 13 Aug 2011 04:00 AM PDT ¤ Yesterday in Gold and Silver The gold price declined in fits and starts during Far East and early London trading on Friday...and was down about ten bucks by the time the Comex open rolled around in New York at 8:20 a.m. Eastern time. Just minutes after the New York open, the price decline accelerated...and by around 10:45 a.m. Eastern, the gold price was down another thirty-five bucks. That turned out to be the low tick of the day...and from there, the price gained back about twenty-two dollars by the close of the New York Access market at 5:15 p.m. The spot gold price closed down $21.30 on the day. Volume was well down from previous days this week, but still very chunky nonetheless. The silver price remained slightly positive right up until 2:00 p.m. Hong Kong time...and then began to decline right into the London silver fix, which came shortly after noon British Standard Time. Then the price began to rise...but every attempt that silver made to blast o...
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| Abandoning the gold standard was a fatal error we're now all paying for Posted: 13 Aug 2011 03:40 AM PDT Any hope we have lies in China, which is fast realising its investment in US debt will not be fully repaid, writes Ed Conway. 
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| Recessionspotting: "You Are Here" Posted: 13 Aug 2011 03:31 AM PDT Now that even the likes of Joe LaSagna are starting to throw out the R-word about as casually as they did a 4% 2011 GDP target as recently as 2 months ago, it is becoming increasingly clear that the market is pricing in the fact that post a few more historical BEA revisions, the prior two real GDP reads will end up having been, shockingly enough, negative, i.e., your garden variety recession. So where does that put us on a market performance continuum, for those wishing to extrapolate how much further stocks and, yes, bonds (because credit is and always has been a far better indicator of objective market reality) have to drop before we hit the proverbial floor. Well, according to Morgan Stanley, quite a bit lower: "Despite the recent decline in risk assets, we do not believe that recession is in the price. Exhibits 3 and 4 show the typical declines in developed market risk assets in recession. Compared to corrections in past recessions, S&P prices and corporate credit spreads would have more to go, though spreads are starting from a higher level than typically precedes recessions." What is startling is that should central planners lose all control (and with central bank intervention upon intervention, one can argue that should all artificial props be removed, the market really ought to plunge in a Great Depression-style tailspin), the drop from the April 29 peak to the bottom will be roughly 4 times greater... which means the S&P would hit the proverbial "S&P 400" which is the long-term target of the likes of some more popular skeptics such as Albert Edwards and Russell Napier. As for credit: watch out below. Equities:
and Credit:
And completing the pain, again from Morgan Stanley:
Translation: we are on the verge of the biggest deflationary market collapse since the 1930s, which will, inevitably, be followed by the most powerful (read fiat dilutive) central bank response in history. All those gloating that hyperinflation has not set in yet... give it a year.
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| Recessionspotting: "You Are Here" Posted: 13 Aug 2011 03:31 AM PDT
Now that even the likes of Joe LaSagna are starting to throw out the R-word about as casually as they did a 4% 2011 GDP target as recently as 2 months ago, it is becoming increasingly clear that the market is pricing in the fact that post a few more historical BEA revisions, the prior two real GDP reads will end up having been, shockingly enough, negative, i.e., your garden variety recession. So where does that put us on a market performance continuum, for those wishing to extrapolate how much further stocks and, yes, bonds (because credit is and always has been a far better indicator of objective market reality) have to drop before we hit the proverbial floor. Well, according to Morgan Stanley, quite a bit lower: "Despite the recent decline in risk assets, we do not believe that recession is in the price. Exhibits 3 and 4 show the typical declines in developed market risk assets in recession. Compared to corrections in past recessions, S&P prices and corporate credit spreads would have more to go, though spreads are starting from a higher level than typically precedes recessions." What is startling is that should central planners lose all control (and with central bank intervention upon intervention, one can argue that should all artificial props be removed, the market really ought to plunge in a Great Depression-style tailspin), the drop from the April 29 peak to the bottom will be roughly 4 times greater... which means the S&P would hit the proverbial "S&P 400" which is the long-term target of the likes of some more popular skeptics such as Albert Edwards and Russell Napier. As for credit: watch out below. Equities:
and Credit:
And completing the pain, again from Morgan Stanley:
Translation: we are on the verge of the biggest deflationary market collapse since the 1930s, which will, inevitably, be followed by the most powerful (read fiat dilutive) central bank response in history. All those gloating that hyperinflation has not set in yet... give it a year.
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| Gold will be the safe haven in the coming meltdown Posted: 13 Aug 2011 03:15 AM PDT John Embry (www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about how the price of gold will react in another market meltdown similar to 2008, and whether there will be a ...
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| Last Week's Market Rout In Sector-Beta Perspective Posted: 13 Aug 2011 03:06 AM PDT While it is true that following an epically volatile week , the S&P closed down only 2.2% (down 11% MTD and 6% YTD), the traditionally homogeneous distribution in domestic and global beta is starting to get unhinged. Stated otherwise, if one were to gauge by the S&P alone, one would massively underestimate the divergence between different sectors and countries. Therefore, we have summarized last week's performance in just two charts, which show the substantial dispersion in performance, and just how much more painful the week has been for those long financials and/or Korea. As central planners briefly lost control of the markets, is relatively value, gasp, coming back, if only for a short time?
And a bonus chart. Yes, you can't eat gold... but what if you gave it enough fertilizer? Gold and Fertilizer stocks were the best subsector by a mile in the past week.
A trend is emerging: when the world is coming to an end, buying end of the world stocks is probably a good idea.
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| Last Week's Market Rout In Sector-Beta Perspective Posted: 13 Aug 2011 03:06 AM PDT
While it is true that following an epically volatile week , the S&P closed down only 2.2% (down 11% MTD and 6% YTD), the traditionally homogeneous distribution in domestic and global beta is starting to get unhinged. Stated otherwise, if one were to gauge by the S&P alone, one would massively underestimate the divergence between different sectors and countries. Therefore, we have summarized last week's performance in just two charts, which show the substantial dispersion in performance, and just how much more painful the week has been for those long financials and/or Korea. As central planners briefly lost control of the markets, is relatively value, gasp, coming back, if only for a short time?
And a bonus chart. Yes, you can't eat gold... but what if you gave it enough fertilizer? Gold and Fertilizer stocks were the best subsector by a mile in the past week.
A trend is emerging: when the world is coming to an end, buying end of the world stocks is probably a good idea.
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| Physical gold demand is taking over Posted: 13 Aug 2011 03:00 AM PDT John Embry (www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about the price of gold and the US debt downgrade. They discuss Sinclair's $1,764 level and how the ...
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| Posted: 13 Aug 2011 02:28 AM PDT by Roman Baudzus, GoldMoney.com:
India's investors have already been very nervous in recent months, in large part owing to the European Union´s escalating sovereign debt crisis. After the rating agency S&P cut the credit quality of the United States from AAA to AA + last Friday, these concerns have intensified. This week´s big losses in global equity markets has dampened sentiment among India's investors, while the exit of global investors from Indian stock markets has forced the rupee down to a 10-week low. Global investors are increasingly fleeing India´s equity markets and have started repatriating capital to their home countries. However, gold is shining brighter than ever in the wake of the world´s escalating debt crisis, since investors want to safeguard their capital by buying the yellow metal and other tangible assets.
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| Posted: 13 Aug 2011 01:50 AM 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 13, 2011 05:41 AM [LIST] [*]Grandich interview - highlight segment 8 [*]Don’t let anyone (especially Tokyo Rose) tell you gold isn’t Golden [*]Don’t hold you breadth waiting for Rev AL and Jesse to protest this [*]Who said there are no empty seats? [*]Comment on Alderon Resources [*]It’s all Nixon’s fault [*]Compounding fears [*]Caution [*]I’m certain unemployed, under employed and most American working families are following the lead of our First Lady – NOT! [*]This video puts the European crisis in proper prospective. [*]Sound familiar? [/LIST] [url]http://www.grandich.com/[/url] grandich.com...
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India's gold price climbed to a new all-time high in the middle of the week. While the Indian rupee lost ground again and fell to a 10-week low, the nation's benchmark gold futures contract soared another 3% at the Multi Commodities Exchange helping the domestic gold price to reach a new record high of 26,200 rupees per 10 grams. The Indian rupee´s heavy losses are primarily caused by the retreat of global stock markets as investors shun risks. India's benchmark index, the Nifty, has been suffering from strong sales pressure in recent weeks, since many investors are seeking safe havens such as gold.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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