Gold World News Flash |
- Pierre Lassonde - “Gold to Attack $2,000 in September”
- Rumor - Wynter Benton: Central Bank Annoucement on Accumulating Silver as a Reserve Asset Imminent!
- Silver Update 8/26/11 - Buffetoon
- News That Matters
- Selling Against The Angels Expected
- Lassonde - Mining Shares To Outperform Gold Going Forward
- Gold Seeker Closing Report: Gold Erases Early Losses and Silver Gains Almost 4%
- GoldMoney's Turk interviews Matterhorn's Egon von Greyerz
- Guest Post: Federal Reserve Policy Mixed With Extreme Weather Has Put The World On A Fast Track To Revolution And War
- In An Unsustainable System, A Warning of Collapse
- Think The Buffet Investment In BAC Is Investing Savvy?
- Market crash 'could hit within weeks', warn bankers
- QE3: Place Your Bets
- Harvey Organ's Daily Gold & Silver Report
- Catherine's Response to the Comment: “Gold is the conscience and spirit of God on earth.”
- Pierre Lassonde: “Gold to Attack $2,000 in September”
- Ben Davies: “We See Unprecedented Physical Gold Demand”
- BofA Says Berkshire Will Invest $5 Billion
- Jim Sinclair: Selling Against The Angels Expected
- Gold Rises By $7.70 To $1759.80 Despite Margin Increases / Silver Shines Rising By $ 1.58 To $40.74 / Buffet Temporarily Bails Out Bank Of America
- German Court Wields Huge Economic Power
- Crony Capitalist Of The Month: Mohamed El-Erian
- Gold Price Closed Today at $1759.80
- Gold Positions Are Shifting at Central Banks
- In The News Today
- The Gold Bears Need To Start Writing Their Last Will and Testaments
- Marc Faber: “My Favorite Investment remains Gold”
- Comic Volatility
- Buffett’s Sweet Deal
- Jim Willie: If You Dont Protect Yourself, You Will Be a Victim–Gold & Silver Serve As Your Only Lifeboat
| Pierre Lassonde - “Gold to Attack $2,000 in September” Posted: 25 Aug 2011 07:56 PM PDT So my feeling is that the correction at $1,700, plus or minus $20 is over.
|
| Rumor - Wynter Benton: Central Bank Annoucement on Accumulating Silver as a Reserve Asset Imminent! Posted: 25 Aug 2011 07:45 PM PDT a major sovereign central bank has been accumulating physical silver as a reserve asset and will soon publicly announce this fact.
|
| Silver Update 8/26/11 - Buffetoon Posted: 25 Aug 2011 07:38 PM PDT
|
| Posted: 25 Aug 2011 06:51 PM PDT Ft.com Britain's weakening economy may require another round of monetary stimulus, according to one of the "hawks" on the Bank of England's monetary policy committee, the FT says. "Substantial further weakening of inflationary pressures would, http://ftalphaville.ft.com/thecut/2011/08/26/662906/boe-hawk-makes-call-for-qe2/ John Paulson, one of the world's most successful hedge fund managers, has extended losses throughout August to leave his flagship fund down almost two-fifths for the year, the FT says, citing a person familiar with the fund's performance. His Advantage Plus fund was down 38.7 per cent for the year as of Friday, http://ftalphaville.ft.com/thecut/2011/08/26/662876/paulson-fund-extends-august-losses/ Goldman Sachs managers have been reminding their London-based employees that temporarily higher salaries granted to them for 2010 would expire beginning in 2012, says the WSJ. The move dates back to a decision to shift bankers' pay into salaries and away from incentive-based compensation, http://ftalphaville.ft.com/thecut/2011/08/26/662881/goldmans-london-employees-face-salary-reversion/ A swathe of states along the east coast of the US, from North Carolina to New York, have declared emergencies ahead of the arrival of Hurricane Irene, the BBC reports. The first hurricane of the Atlantic season is now a category three storm, http://ftalphaville.ft.com/thecut/2011/08/26/662856/irene-prompts-state-of-emergency-in-six-us-states/ Short-selling bans on selected European bank stocks have been extended by regulators until the end of September, in an unprecedented degree of regulatory co-ordination, the FT says. Regulators on Thursday http://ftalphaville.ft.com/thecut/2011/08/26/662846/european-short-selling-ban-extended/ South Korea's leftwing opposition is celebrating the outcome of an unprecedented referendum on whether the state should pay for school lunches, which they say paves the way for Korea to become a welfare state, http://ftalphaville.ft.com/thecut/2011/08/25/662751/s-korea-referendum-opens-door-to-welfare-state/ Manmohan Singh, India's prime minister, has appealed to Anna Hazare, the social activist, to halt his 10-day public hunger strike in an anti-corruption campaign that has spurred thousands to take to the streets, http://ftalphaville.ft.com/thecut/2011/08/25/662711/singh-makes-emotional-appeal-to-hazare/ The context for Ben Bernanke's speech in Jackson Hole on Friday differs notably from that of a year ago, so anybody expecting a message that sharply changes the current setting of monetary policy is likely to be disappointed. http://ftalphaville.ft.com/thecut/2011/08/25/662691/bernanke-to-signal-steady-setting-in-fed-policy/ Brevan Howard, the world's largest macro hedge fund, has made close to $1.5bn over the past three weeks on the back of turmoil in the global markets. In a month in which equity markets worldwide have seen declines of more than 10 per cent, the gain comes as a vindication for the $32bn London-based fund manager, which for more than a year – like many of its peers – has struggled to make headway in volatile conditions. http://www.ft.com/intl/cms/s/0/60634250-cf02-11e0-86c5-00144feabdc0.html?ftcamp=rss#axzz1W0sb4140 Greek sovereign debt yields have spiked on fears that a side deal struck between Athens and Finland on collateral for the Nordic country's share in the most recent €109bn rescue could imperil the bail-out agreement struck earlier this summer. Greece last week agreed to put an estimated €500m into a Finnish escrow account as collateral for Finland's share in the bail-out, but the deal has caused consternation among other eurozone members, several of which have now said they also want similar agreements. http://www.ft.com/intl/cms/s/0/66136c64-cf0e-11e0-86c5-00144feabdc0.html#axzz1W0sb4140 Wsj.com Eight of Belgium's main political parties are set to assemble Friday for critical talks on overhauling the country's complex system of government, discussions analysts say are vital to resolving a political impasse that has exacerbated concerns about its finances. Belgium has been without a government since a separatist party from the Dutch-speaking north garnered the most votes in national elections in June 2010. The party, the N-VA, wasn't close to a majority and couldn't form a coalition. http://online.wsj.com/article/SB10001424053111904009304576530392508721296.html?mod=WSJEUROPE_hpp_MIDDLESecondNews Greece's worsening slump is threatening to compound another risk for the country: the steady withdrawal of money from Greek banks. In the last 20 months, the country's banks have suffered an unprecedented withdrawal of customer deposits. Tens of thousands of Greeks—from the well-heeled to the less well-off—have moved their savings out of the country or stashed the cash in safe-deposit boxes or under a mattress, bankers say. The consequence for many Greek banks is a growing shortage of liquidity that is increasing their reliance on emergency funding from the European Central Bank and forcing them to further cut lending to businesses. That, in turn, is deepening Greece's recession, making it harder for the government to narrow its gaping budget deficit.http://online.wsj.com/article/SB10001424053111904009304576528081501462432.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews France's President Nicolas Sarkozy made a brief stopover in Beijing, where he urged China to join international efforts to rebuild Libya and was reminded by President Hu Jintao to protect China's investments in euro debt. Mr. Hu, however, reiterated his faith in the European economy. "China believes that Europe is wise and able to overcome the current difficulties and to maintain the economic stability and growth," Mr. Hu said. He underscored that China continues to regard Europe as a major investment destination and said it expects Europe "to take measures to ensure Chinese investments there are safe." http://online.wsj.com/article/SB10001424053111904875404576530092461903686.html?mod=WSJEUROPE_hpp_MIDDLESecondNews China's big banks reported hefty profits in the first half of this year, but signs of strain are showing from their massive lending binges and as they struggle to meet tougher capital requirements. Profits of the nation's five biggest banks by assets, led by Industrial & Commercial Bank of China Ltd., were buoyed in part by a greater focus on business that generates fee income, such as credit cards and wealth-management products. The shift comes amid Beijing's efforts to rein in bank lending as it fights inflation that resulted from a surge in credit used to stimulate the economy during the global financial crisis.http://online.wsj.com/article/SB10001424053111904875404576529831122324362.html?mod=WSJAsia_hpp_LEFTTopStories Japan's economy minister said Friday that the government on Monday will release a list of suggested responses to the strong yen for the incoming administration, expected to be formed next week after Prime Minister Naoto Kan steps down. Further comments by Economic and Fiscal Policy Minister Kaoru Yosano, at a regular press conference, suggest the government is leaning toward coping with, rather than fighting, a yen whose strength threatens the fragile recovery in the country's export-reliant economy. He expressed reluctance about further aggressive yen-selling intervention, saying it "is a necessary weapon but not one we can use frequently." http://online.wsj.com/article/SB10001424053111904787404576531411270701064.html?mod=WSJASIA_hpp_LEFTTopWhatNews Marketwatch.com Gold futures closed higher Thursday as lower equities and a swirl of rumors that Germany might be next to get a sovereign-debt downgrade contributed to renewed nervousness in the markets. The yellow metal had spent most of the trading day extending losses, hit by a margin-requirement increase and as investors lost heart that economic stimulus is forthcoming. Gold for December delivery added $5.90, or 0.3%, to finish at $1,763.20 an ounce on the Comex division of the New York Mercantile Exchange. It had traded as low as $1,705.40 an ounce — some $187 below Monday's record settlement of $1,891.90 an ounce. http://www.marketwatch.com/story/gold-declines-over-uncertainty-over-fed-2011-08-25 Reserve Bank of Australia governor Glenn Stevens said Friday in a statement to the House of Representatives economics committee that markets remain on edge and the global growth outlook does not look as strong as it did six months ago. The year-end consumer price inflation rate will probably remain well above 3% in the September quarter but is then likely to come down, Stevens said. He added that it would be reasonable to expect that a decline in confidence arising from the recent international events may well dampen demand somewhat compared with the outlook the central bank gave in early August.http://www.marketwatch.com/story/australias-central-bank-says-markets-on-edge-2011-08-25 Japan chalked up a small victory in its war against deflation Friday, as the government announced the core consumer price index posted a surprise increase for July, rising 0.1% compared to a year earlier. Separate forecasts from Dow Jones Newswires and Reuters had expected core CPI, which excludes volatile fresh food prices, to fall 0.1%. A 3.4% year-on-year rise in fuel, light and water charges helped push the index higher. The gain came despite a revision to the index's base year, which was expected to give a downward bias to the result, according to Dow Jones Newswires. http://www.marketwatch.com/story/japan-consumer-prices-post-surprise-rise-2011-08-25 Reuters.com Astronomers have spotted an exotic planet that seems to be made of diamond racing around a t |
| Selling Against The Angels Expected Posted: 25 Aug 2011 05:17 PM PDT My Dear Extended Family: I am amazed at the day later geniuses that send out dire warnings on gold. Selling against the upper two Angels was obvious. There is no top in gold. Kenny places the odds at 50/50 that yesterday's low was the low. He says that if it was not then the low is not far below. I have never seen such capitulation among people especially in outrageously undervalued gold shares. Pros were dropping dead today. In bullion you had to walk close to the building to be safe from the golden flyers. I have told you time and time again that gold will be violent in its exponential stage. What you have seen is nothing compared to what is to come. Truth be known, this kitchen is going to get hotter by the day so if you cannot handle the heat sell partially at each Angel until you have cut yourself back to the sleeping well size position. For heaven's sake stop barfing into weakness. Stop selling weakness and buying strength. That is a kindergarten ty...
|
| Lassonde - Mining Shares To Outperform Gold Going Forward Posted: 25 Aug 2011 04:20 PM PDT  With gold rallying strongly off of the lows yesterday along with mining shares, King World News interviewed legendary Pierre Lassonde to get his thoughts on what to look for going forward. When asked about the mining shares specifically Lassonde responded, "Well, I'm encouraged by the action that we've seen in the last month. What I see is when the general market really tanked a couple of weeks ago, the only shares that did not go south, in fact they increased in value (over time), were the gold stocks. So finally we are seeing the gold stocks perform as they should."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold Erases Early Losses and Silver Gains Almost 4% Posted: 25 Aug 2011 04:00 PM PDT Gold fell $51.95 to as low as $1702.95 by a little after 5AM EST, but it then rallied back higher in London and New York and ended near its late session high of $1767.24 with a gain of 0.29%. Silver dropped to as low as $38.685 before it surged to as high as $40.98 and ended with a gain of 3.87%. Both are rising to new highs in afterhours access trade as well.
|
| GoldMoney's Turk interviews Matterhorn's Egon von Greyerz Posted: 25 Aug 2011 03:59 PM PDT 11:46p ET Thursday, August 25, 2011 Dear Friend of GATA and Gold: Egon von Greyerz of Matterhorn Asset Management in Zurich was interviewed at GATA's Gold Rush 2011 conference in London by GoldMoney founder James Turk. They discussed the weakening of Switzerland's banking and monetary systems, the country's diminishing understanding of gold, and the need for investors to own gold outside the banking system. The interview is 16 minutes long and you can watch it at the GoldMoney Internet site here: http://www.goldmoney.com/video/greyerz-turk-interview.html?gmrefcode=gat... 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
|
| Posted: 25 Aug 2011 02:39 PM PDT From David DeGraw of AmpedStatus Federal Reserve Policy Mixed With Extreme Weather Has Put The World On A Fast Track To Revolution And War. There are many factors that clearly demonstrate why it would be disastrous for the Federal Reserve to repeat their vicious Quantitative Easing (QE) policy. If you want to know a significant reason why they cannot get away with another round of QE, here is an equation for you: (Quantitative Easing + Extreme Weather = Revolution + World War III) From the very beginning we knew that the Federal Reserve's QE program was going to cause the cost of food to rise and the dollar to decline in value, and that these intended results would lead to an increase in poverty and civil unrest. Now there is a new study that gives us some more proof of this obvious fact:
In other words, if the Fed engages in another round of QE, the global unrest that they have already ignited will go hyperbolic. Before getting into the details on how the Fed deliberately made these food prices spike, let's look at another new study, which also helps demonstrate the obvious, extreme weather is linked to war:
Put all these factors together and you have, "The Road Through 2012: Revolution [and/or] World War III." In summation, Ben Bernanke and the Fed's economic central planners were clearly aware of the hostile climate and weather patterns when they engaged in QE2. The Fed's infamous policy, as I said before, "deliberately threw gasoline all over those brush fires. QE2 was another economic napalm bomb from the global banking cartel." They knew that they were deliberately attacking (sacrificing) tens of millions of people, but that was secondary to keeping their global Ponzi scheme going by pumping another $2.1 trillion into their fraudulent, insolvent banking system through both QE programs. This is why Ben Bernanke is guilty of crimes against humanity. Now, let's revisit what I've been reporting on for the past year:
The conclusion that we reach, the unfortunate reality of our current crisis: the Federal Reserve and global economic central planners have declared war on us. We are under attack. We must remove Ben Bernanke from power and hold him and the rest of the global banking cartel accountable. We must also break up the "too big to fail" banks. This a message I, along with many others who have analyzed our economic situation, have been repeating over and over for the past three years. Hopefully, a critical mass of people will soon understand this reality and back it up with non-violent civil disobedience before riots and violence rip our society apart. For these reasons, let's all go to Wall Street on September 17th and show these tyrants that we've had enough.
|
| In An Unsustainable System, A Warning of Collapse Posted: 25 Aug 2011 02:33 PM PDT An excerpt from Bob Chapman's weekly publication. We do not believe that Americans, particularly elderly Americans, understand what the elitists are up to in regard to Social Security and Medicare. The Council on Foreign Relations and the Peterson Foundation has for years been working on plans to terminate Social Security and Medicare. Cuts in these [...] 
This posting includes an audio/video/photo media file: Download Now |
| Think The Buffet Investment In BAC Is Investing Savvy? Posted: 25 Aug 2011 02:18 PM PDT From The Golden Truth Think again. This sequence of events is not a coincidence, and it's going to utilize your tax dollars to turn it into a quick home run for guys like Buffet: Monday: Buffet "discusses" the economy with Obama; Tues/Wed: Bank of America looks ready to collapse; Thursday very early: Buffet announces a [...] 
This posting includes an audio/video/photo media file: Download Now |
| Market crash 'could hit within weeks', warn bankers Posted: 25 Aug 2011 01:48 PM PDT A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.
|
| Posted: 25 Aug 2011 01:40 PM PDT "Tomorrow [Friday] is going to be a humdinger of a day as the world awaits QEIII or no QE III. If QE III is announced, the stock market will rise, the dollar will tank and gold will head into the stratosphere. If no QEIII then the Dow tanks by 1,000 points and gold heads into the stratosphere. I believe we win with either scenario." That about sums it up. ...and now we must prepare for the Hurricane scheduled for a visit Saturday. 
|
| Harvey Organ's Daily Gold & Silver Report Posted: 25 Aug 2011 01:37 PM PDT QE III announced, Dow rise, dollar tank, gold to stratosphere. If no QEIII Dow tanks, gold heads to stratosphere. I believe we win either way.
|
| Posted: 25 Aug 2011 01:34 PM PDT By Catherine Austin Fitts Gold is a metal. If everyone takes all their money out of operating enterprises and puts it in gold and pays people to watch their gold or dig up the earth to get more gold, the economy will stop. The top guys bubbled real estate and used the money to buy [...]
|
| Pierre Lassonde: “Gold to Attack $2,000 in September” Posted: 25 Aug 2011 01:18 PM PDT from King World News:
Pierre Lassonde continues: Read More @ KingWorldNews.com
|
| Ben Davies: “We See Unprecedented Physical Gold Demand” Posted: 25 Aug 2011 01:18 PM PDT from King World News:
Ben Davies continues: Read More @ KingWorldNews.com
|
| BofA Says Berkshire Will Invest $5 Billion Posted: 25 Aug 2011 01:16 PM PDT From Bloomberg Bank of America Corp. (BAC), the biggest U.S. lender, said Warren Buffett's Berkshire Hathaway Inc. will invest $5 billion to bolster the company after losses tied to subprime mortgages drained capital. Bank of America surged in New York trading. Berkshire will get cumulative perpetual preferred stock paying a 6 percent dividend, the Charlotte, [...] 
This posting includes an audio/video/photo media file: Download Now |
| Jim Sinclair: Selling Against The Angels Expected Posted: 25 Aug 2011 01:00 PM PDT I am amazed at the day later geniuses that send out dire warnings on gold. Selling against the upper two Angels was obvious. There is no top in gold.
|
| Posted: 25 Aug 2011 12:27 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Quite a day today. We started the day off by the Bank of America announcing that it has received an offer from Warren Buffet for 5 billion dollars in preferred stock plus warrants. I thought that Bank of America did not need any capital. It looks to me like the Bank of America will be taken out by JPMorgan some time next week. Bank of America is insolvent. I guess that will explain Warren's trip to the White House as he needed guarantees that JPMorgan will take the troubled real estate portfolio from BAC. The price of gold initially got hammered due to those margin increases that I brought to your attention yesterday night. Gold was brought to resistance level of 1703 dollars before recovering big time and closing at $1759.80 for a gain of $7.70. Silver which hit its nadir at $39.00 immediately started to climb and finished the comex session up a huge $1.58 to $40.74. What is really strange is that options expiry is tomorrow and the cartel basically coughed up huge losses for themselves. Tomorrow is going to be a humdinger of a day as the world awaits QEIII or no QE III. If QE III is announced, the stock market will rise, the dollar will tank and gold will head into the stratosphere. If no QEIII then the Dow tanks by 1,000 points and gold heads into the stratosphere. I believe we win with either scenario. Let us head over to the comex and access the trading of our precious metals. Read More @ HarveyOrgan.Blogspot.com
|
| German Court Wields Huge Economic Power Posted: 25 Aug 2011 12:12 PM PDT By: John Browne Thursday, August 25, 2011 With investors now emerging from a state of panic after the harrowing losses of late July and August, stock markets are now rising and gold is finally falling after a record run that pushed its price north of $1,900 per ounce. The buoyant mood is largely undergirded by the hope that on this Friday, August 26th, Fed Chairman Ben Bernanke will announce another round of stimulus to stop the U.S. economy from slipping back into another recession. In contrast to this American expectation for more monetary manna from the heavens, many Eurozone governments have instituted harsh austerity programs. But behind the scenes the European Central Bank (ECB), in direct contradiction to the EU formation treaty, continues to enact a rescue package that purchases billions of dollars of subpar Eurozone sovereign debt. But at present, few governments or large financial ...
|
| Crony Capitalist Of The Month: Mohamed El-Erian Posted: 25 Aug 2011 11:36 AM PDT This article originally appeared in the Daily Capitalist. I am crossing Pimco off my list as a credible institution. If Bill Gross and Mohamed el-Erian are running that show, and if you have any money invested there, I recommend pulling out, fast. The fact is they have very little understanding of basic economics and continue to call for policies that are ruinous to our fiscal and monetary health. They are run of the mill neo-Classical/neo-Keynesian economists who happen to be very good traders. I'll add something else as well: they are just lucky. As Nassim Nicholas Taleb points out in his writings, statistically institutions like Pimco can and will exist at the upper end of the investment advisory spectrum, and you can't tell if they are lucky or smart. I'm saying Gross and El-Erian have been lucky. Bill Gross has already starred in the Daily Capitalist as Crony Capitalist of the Month. No need to repeat his errors. It is Mr. El-Erian I wish to discuss. Perhaps the fact that Mr. El-Erian publishes commentary in the Huffington Post, that combine of liberal dogma, faith-based economics, and sleaze, is somewhat of an indicator of the quality of his analysis. Yes, I know HuffPo is respectable now that AOL blew $315 million to acquire them. But ... they are still sleazy. What got me vexed were some of Mr. El-Erian's recent articles in HuffPo. His style that is that of the Senior Statesman Who Pontificates. That is, there are a lot of nice words but little real content or meaning. It sounds like stuff that comes out of committees. Here is a typical example of his five point solution for America:
Blah blah, blah. I could go on but it all sounds the same. It's the kind of stuff you hear from retired CEOs who go on the lecture circuit. If you wish you can read on your own his five point program to save us. Basically he is saying that we need to focus on national goals, that our politicians need to show leadership, that we need to unite behind a program that everyone can agree to, and then we need to execute the plan. And he says we have little time to waste or ... we will suffer from years of economic stagnation. Wow! Pretty (un)impressive stuff. I am sure it appeals to the HuffPo audience. It actually took a little digging to finally figure out what he actually advocates. Here it is in one sentence:
At last: quantitative easing ("further balance sheet operations") and inflation ("monetization of debt") is the solution. This is Krugmanesque in its naïveté and ignorance of monetary theory. One might ask him why it hasn't worked after pumping $2 trillion of fiat money into the economy. One might ask why ZIRP hasn't worked either. Or why it hasn't worked in Japan – ever. When you analyze what Mr. El-Erian is advocating it is the further devaluation of the dollar, more price inflation thereby destroying valuable capital and robbing the elderly of their savings, distorting the business cycle which will lead to further economic stagnation and high permanent unemployment, and increasing federal debt as a percentage of the economy thereby creating debt slaves of future generations who, like us, will obtain no benefit from what we spent the money on. It gets much worse though. Here is the key paragraph:
While I am a harsh critic of Mr. El-Erian, I am doing my best to fairly represent his ideas from his actual statements without taking them out of context. Thus, when I give you the above quote, I believe it is not just a throw-away line. Here is the following paragraph:
This is a shocking statement from Mr. El-Erian. It is indicative of his world view. That is, an effective government is one where the government makes policy, imposes it on its people, and carries out such policy based on government-determined economic goals. It appears to me he is advocating a command economy. Why do I conclude that? If we can agree that WWII was a period of a "buy-in" of government economic policy objectives, then I don't see any other period in recent American history where there was a "buy-in from broad segments of society" of any economic policy. In fact constant dissent and in-fighting is the way most democracies function. The way China achieves a "buy-in from broad segments of society" is to dictate policy to its cadres who make sure that their "medium term policy objectives" (5-year plans) are carried out. "Re-framing" means that if you don't "buy-in" then there are penalties. I have to conclude one of three alternatives from his statement. One, he is naive. Two, he is ignorant. Three, he means it. He is a sophisticated, well educated, worldly gentleman. Thus I don't think he is naive or ignorant. I am sure he would deny that he is anti-democratic and that his reference to China was not meant to be exemplary, but rather illustrative of what happens when those objectives are attained. Perhaps it has occurred to him that such "national" objectives can never be attained in a democratic, capitalistic society. At least not in the top-down manner he advocates. Common goals here have been mainly achieved from ground-up voluntary cooperation of millions of people through the marketplace. Politics has not been a great forum for achieving successful policy, as he points out. By trying to limit the power of the federal government, the founders of our country understood very well the pitfalls of central political authority. The fact we have so much discord is a direct result of the growing power of the federal government to intervene in our lives. By taking away individual choice we have to use politics to fight for what was originally ours. Mr. El-Erian is a throwback from earlier times when the chimera of central planning and "national goals" were seen as laudable goals. We dismissed those ideas because they don't work. Mr. El-Erian was born much too late.
|
| Gold Price Closed Today at $1759.80 Posted: 25 Aug 2011 10:50 AM PDT Gold Price Close Today : 1759.80 Change : 5.70 or 0.3% Silver Price Close Today : 0.407 Change : (0.016) or -3.7% Gold Silver Ratio Today : 4319.59 Change : 175.033 or 4.2% Silver Gold Ratio Today : 0.00023 Change : -0.000010 or -4.1% Platinum Price Close Today : 1820.30 Change : -42.40 or -2.3% Palladium Price Close Today : 750.65 Change : -12.30 or -1.6% S&P 500 : 1,159.27 Change : -18.33 or -1.6% Dow In GOLD$ : $130.97 Change : $ (2.43) or -1.8% Dow in GOLD oz : 6.336 Change : -0.117 or -1.8% Dow in SILVER oz : 27,368.43 Change : 620.07 or 2.3% Dow Industrial : 11,149.90 Change : -170.81 or -1.5% US Dollar Index : 74.22 Change : 0.209 or 0.3% Moneychanger's gone fishing, but sent this comment. Establishment knows it's in big trouble. Witness firing big blarney cannon today. Warren Bufet buys 5 billion of biggest bank, Bank of America. Talking heads foaming at the mouth blathering about bets on America. O, can adults really be gulled by such blarney? Reckon so, since they are pulling it again. Buffet notwithstanding, stocks are doomed. Establishment is terrified. Buy silver and gold. On Saturday, 3 September we will celebrate our annual Bodacious Hoedown again at the Top of the World farm. Starts at 1:00 p.m. with an afternoon of games like raw egg toss, dunking booth which my children have set up for me, and lots of others. Or you can sit bring a stringed instrument and sit under the trees jamming with others (do NOT bring a grand piano. It has strings, but won't fit in.) After that come supper with barbecued pork raised on our own farm, slaw, beans, tomatoes, and dessert. Then comes the fun: an Old Time Band and dance caller. This year we are not charging admission, as a thank-you to all our customers. If you're interested, email me with "Hoedown Directions" in the subject line and I'll send you directions and a list of local motels -- or you can camp out, if you like rustic camping. franklin AT the-moneychanger.com (replace AT with @) 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. 
|
| Gold Positions Are Shifting at Central Banks Posted: 25 Aug 2011 10:10 AM PDT Author: Vedran Vuk Synopsis: What are central banks doing regarding their gold holdings in this bull market? Some of the action may surprise you. Also in today's issue: Vedran Vuk provides an update on Casey Research appearances and events; and is Buffett really bullish on Bank of America (again)? Dear Reader, Rather than have the usual full intro today, I want to let you know about recent or upcoming Casey Research appearances and events. First, make sure to check out Doug Casey's interview with Kerry Lutz on the Financial Survival Network. Doug covers a number of topics, from his philosophical views on government to the price of gold. Readers of Conversations with Casey should particularly enjoy this mix of philosophy and investment. Also, don't forget about Louis James's two-day appearance at the The World MoneyShow in Toronto from September 8-10. He will addres...
|
| Posted: 25 Aug 2011 10:10 AM PDT Jim Sinclair's Commentary A little humor, if it's even really funny… BREAKING NEWS: Seismologists have confirmed that it WAS an earthquake and NOT the 14.6 trillion dollar check bouncing on the East Continue reading In The News Today
|
| The Gold Bears Need To Start Writing Their Last Will and Testaments Posted: 25 Aug 2011 10:08 AM PDT Mark J. Lundeen [EMAIL="Mlundeen2@Comcast.net"]Mlundeen2@Comcast.net[/EMAIL] 24 August 2011 The people who are looking at the gold market as if it's a deflating bubble are ignorant, or more likely ignorant and lazy. To prove my point, I took weekly closing prices for the Dow Jones, NASDAQ and the price of gold, starting from the first week of their bull markets: August 1982 for the Dow Jones and the NASDAQ, February 2001 for gold. I then indexed their prices so they all start at 1.00, and plotted them by the number of weeks since the start of their bull markets. The Data for the stock indexes runs from August 1982 to February 2002, so we don't see their peaks in 2007. When comparing three indexes' bull markets to each other at Wk 549: [LIST] [*]08 Feb 1993 issue of Barron's for the stock market [*]last Friday's close for gold [/LIST] Obviously gold has outperforming the Dow and the NASDAQ at this time, but not by much. The price of gold (my green plot...
|
| Marc Faber: “My Favorite Investment remains Gold” Posted: 25 Aug 2011 10:07 AM PDT "To some extent we are in the midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013 . . ."
|
| Posted: 25 Aug 2011 09:54 AM PDT Shazaam!…Ka-Pow!…Zoom!… These posts are starting to sound a bit like comic books excerpts. But hey, don't blame us…we're just describing what we see in the gold market. Zip!…Zig!…Zag!… After plummeting around $150 the previous two days, gold slid another $40 in early trading today, from $1,750 per ounce all the way down to $1,710. Now it's back in the black for the day, up about six bucks to $1,756. That's an $80 move…in just a few hours! Readers will notice we're being a little loose with the numbers here. But what's the point of painfully exact figures anyway…by the time we've struck the keys on our computer they're out of date anyway. Inspired, perhaps, by the recent volatility, Fellow Reckoners have been writing in the past few days to ask where we think gold is going. Will it continue to fall, or is it heading to the moon? Our answer, unhelpful though it may be, is "yes." First the former, then…when the Johnnies-come-lately have had their pockets emptied, the latter. So what about the short-term? Next week? Next month? "Gold looks like it has gotten ahead of itself," opined Bill in yesterday's reckoning. "It looks over-bought. Besides, investors may be expecting too much of the Fed." As you know, Bernanke and Co. will meet tomorrow in Jackson Hole, Wyoming, for their annual powwow. It's the same gasbagging fête at which, two years ago, Bernanke declared, "The prospects for a return to growth in the near term appear good." A New York Times piece captured the feel-good mood of that 2009 meeting: Central bankers from around the world expressed growing confidence on Friday that the worst of the financial crisis was over and that a global economic recovery was beginning to take shape… Speaking to central bankers and economists at the Fed's annual retreat here in Grand Teton National Park, Mr. Bernanke echoed the growing relief among European and Asian central bankers that their own economies had already started to rebound. Yes, and haven't things gone just swimmingly in Europe over the past 24 months! You know, notwithstanding the ongoing meltdowns in Greece and Ireland…the various bailouts on the table for (or in the pockets of) Portugal, Spain and Italy…and the rapidly intensifying riots in the respective capitals of these nations and others across the continent. This morning, for a bit of perspective, the yields on two-year Greek bonds had blown out to 46.38%, a record high. The second of the Greek bailouts has now, by almost any definition, failed. The question now; which of the PIIGS will be next to the slaughterhouse? Indeed, things on the continent are going swimmingly. Misreading the situation at the time in similar fashion was Stanley Fischer, governor of the Bank of Israel and a top former official at the International Monetary Fund. "It is reasonable to declare," spoke Mr. Fischer, "that the worst of the crisis is behind us, and that the first signs of global growth have appeared earlier than we generally expected nine months ago." Bravo, gentlemen! Bravo! What will these wizards conjure up next, investors around the world are wondering. Addison offered a prediction in today's edition of The 5-Minute Forecast: "Our guess," he wrote, "[Is that] This year's speech will turn out to be a non-event. But given the market's performance on Aug. 9 — when the Fed committed itself to near-zero interest rates for the next two years — look for some crazy swings between 10:00-10:30 a.m. EDT tomorrow while traders attempt to parse the transcript." In other words, hang on to your hats, folks. This ride could get bumpy. For obvious reasons, criticism in advance of an event is not as easy (nor as fun) as criticism with the benefit of hindsight. And so, we'll await the results of tomorrow's chinwag before passing further judgment. Joel Bowman Comic Volatility 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.
|
| Posted: 25 Aug 2011 09:33 AM PDT By AddisonWiggin
Then, it was Goldman Sachs. Today, it's Bank of America. "Berkshire will get cumulative perpetual preferred stock paying a 6% dividend," Bloomberg reports. "Berkshire also gets warrants to buy 700 million shares at $7.14 each." We assure you those are terms that you cannot secure — unless you have a spare $5 billion lying around. They guarantee Buffett will make money even if BAC's share price goes down. That's how it worked with the Goldman deal. Ditto for Berkshire's $3 billion investment in General Electric. Both companies trade at prices lower now than they did when he cut those deals. It's good to be the Oracle…
Unique among the banking sector, BAC has a habit of turning up in the headlines again and again for stunts like repossessing a house that turns out to be the wrong address… or repossessing a house that was paid for in cash. This week, a new wrinkle: Two stories about BAC foreclosing on people who renegotiated their mortgages under the government's Home Affordable Modification Program and dutifully kept up their payments:
Those are micro illustrations of a macro picture. BAC faces massive litigation on two fronts resulting from securitized mortgages. First, there's the massively tangled chain of title on potentially millions of properties: Title was never properly transferred, prompting many recipients of foreclosure notices to go to court demanding, "Who holds the note?" That's a problem for many banks, but BAC is alone in facing this one: the hangover from the Countrywide acquisition. BAC is contending with a host of lawsuits by investors who bought mortgage securities from Countrywide… and who believe Countrywide lied through its teeth about the quality of the underlying mortgages.
"I've taken a look at recommending a BAC short several times over the past year," says our short specialist Dan Amoss, "with the idea that 'fraudclosuregate' might transform it into a juicy target for class action lawyer piranhas. "But I kept coming back to the bull thesis… that with good enough lawyers, BAC can string along this legal settlement process and mortgage-related losses forever. With Tim Geithner at Treasury, BAC also essentially has a lobbyist on its behalf. "The suspension of mark-to-market accounting, an army of lawyers and lobbyists to fight mortgage put backs, and a very friendly Treasury Department will probably keep the stock muddling along for the next few years. I wouldn't buy it or sell it short. The Fed's 'zero rates through 2013' policy is a guaranteed carry trade gift to BAC shareholders — or a tax, if you're a depositor — that will be measured in the billions." In other words, in a fair and just world, BAC would have gone down in flames long ago. But it's not a fair and just world… and you can't invest on that assumption. Still, at a time the market remains dicey, there's a host of stocks due for a tumble… and it's Dan's job to sniff them out. Learn about some of the most likely candidates here.
This is the final piece of data Fed chief Ben Bernanke can chew on as he puts the finishing touches on his annual central bank love fest speech tomorrow in Jackson Hole, Wyo. We don't envy him. He can't announce QE3 because of all the heat he took for QE2. But he has to throw a bone to Wall Street to avert another vicious sell-off. Our guess: This year's speech will turn out to be a nonevent. But given the market's performance on Aug. 9 — when the Fed committed itself to near-zero interest rates for the next two years — look for some crazy swings between 10:00-10:30 a.m. EDT tomorrow while traders attempt to parse the transcript.
The ban was imposed two weeks ago. Since then, France's BNP Paribas is down 10%, Societe Generale is down 12%, Belgium's Dexia is down 12and Italy's UniCredit is down 16%. One of the few beneficiaries is Spain's Banco Santander — which trades on the NYSE with the unfortunate symbol STD. It's flat over the last two weeks. If you followed our tongue-in-cheek suggestion on Aug. 15 about shorting the European financials ETF, you'd be up nearly 8%. If further proof of Einstein's definition of insanity were necessary, there's talk that Germany might follow suit with its own ban.
As we anticipated yesterday, the Comex jacked up margin requirements after the close. True, $9,450 to control a 100-ounce contract isn't much… unless you were accustomed to putting up only $7,425. That's a 27% increase. "Having to spend more money per trade directly squeezes some of the weak hands out of the market," adds Matt Insley at our sister publication Daily Resource Hunter. "But long term? The CME is most likely seeing the same trend we are here, so with gold prices on the rise, margins need to follow." It shouldn't have come as a surprise, given this was what the Comex did with silver in late April and early May.
"We still have unprecedented demand," says Ben Davies of Hinde Capital. "I see it all across Asia. If anything, this pullback just gives more firepower to those people, they will not be put off."
"My personal suspicion? Very little. "The innovative culture that propelled Apple to the highest capitalization on the U.S. stock market earlier this month isn't going to disappear overnight. This is good news because Apple drives the entire industry. It makes everyone else have to bring their 'A game' just to be able to compete. "Jobs' management and technology teams are in place, and despite his resignation, I find it hard to believe he won't stay involved with the company in some way." From where Ray sits, the big news in tech this week is "the escalating patent war in the mobile technology space. A global patent arms buildup is taking place in the industry, with Apple, Google, Microsoft, Samsung, Qualcomm and others all facing each other down in a game of high-stakes poker." Ray breaks it all down in a briefing this week for readers of Technology Profits Confidential. The CliffsNotes version: It's all good for his three most recent recommendations — smaller players, he says, "hold the patent keys for the mobile computing future." Access here.
After the East Coast earthquake on Tuesday, a post showed up on Krugman's account at Google+ — Google's social media answer to Facebook and Twitter. "People on twitter might be joking," Krugman purportedly wrote, "but in all seriousness, we would see a bigger boost in spending and, hence, economic growth if the earthquake had done more damage." The post was quickly picked up and lampooned at the National Review and other sites, which, naturally, assumed it was real. Heh. It wasn't. Krugman didn't write it. A guy named Carlos Graterol created the Google+ account and made the phony post:
"This is really cute," an indignant Krugman whined later on his Times blog. "Apparently, some people can't find enough things to attack in what I actually say, so they're busy creating fake quotes." Unfortunately, Mr. Krugman lacks appreciation for the essence of good satire; the embedded ring of truth. What practical difference is there between the phony Krugman quote and the following real ones:
Ah, sweet irony. Paul Krugman hoisted by his own petard… once again.
"I wonder if any of these people have ever tried to start up or run a business of their own. I won't bore you with all the details, but people need to understand that while our country was taking a nap, the rest of the world grew up, and in some cases passed us, and offers a better opportunity for certain businesses. "I was also amazed at the reference to a sort of hybrid business between the government and the people who work there. Hasn't anyone watched what happened with Fannie Mae and Freddie Mac, two of the largest hybrid business partnerships in the history of the United States, which today exist at the expense of the taxpayers? "Let's not blame the free market for jobs being sent overseas; let's acknowledge what role our government has played here, and our role for continuing to let them get away with it. We can all vote."
"The next-door neighbor of a friend recently came home from work to find a woman she never met stealing peaches by the shopping bag from her three peach trees. The trees are on a vacant lot that she owns next to her home. She confronted the woman and explained to her that these trees were on her property, that she cared for them, paid the taxes on the property and she owned them, not her. "The woman started screaming at her that the trees were from God and that they were there for the benefit of anyone who wanted them. The woman then stormed off carrying the bags of peaches. The owner thought about trying to stop her, but decided that the hassle of police reports and so on was just not worth it. "A few days later, she came home to find the trunk of the peach tree broken. It had been hit by a car and had been broken off next to the ground. I guess that is what passes for logic today. To each according to his needs, as long as the real owners get screwed by the people in need." The 5: We're assuming the God-blessing peach thief also had a car then? Cheers, Addison Wiggin P.S. Hmmn… apparently Col. Gaddafi's whereabouts are still unknown:
Do you suppose it's because they're looking… in the wrong Tripoli?
|
| Posted: 25 Aug 2011 09:07 AM PDT from Contrary Investors Cafe: Tekoa Da Silva speaks with Golden Jackass / Hat Trick Letter newsletter publisher Jim Willie on the roots of national illness & economic toxicity, fear, panic, & perceived ruin moving into the system. According to the Golden Jackass, "THIS IS 2008 ALL OVER AGAIN, BUT TWICE AS BAD." Click Here to Listen to the Interview
This posting includes an audio/video/photo media file: Download Now |
With extreme volatility in gold and silver, today King World News interviewed one of the legends in the gold world, Pierre Lassonde. When asked about the action in gold Lassonde replied, "Yeah, we've had a really good summer for gold, which was to some extent been unexpected. I was thinking that we would see more marking of time for a while on the gold price, but no, it's been a hot summer for gold. But the one thing I really don't like is a candlestick formation. Gold was going up too fast, it needed a breather, it needed a correction to be able to stay in a bull market."
With tremendous volatility in gold and silver, today King World News interviewed Ben Davies, CEO of Hinde Capital, about the correction in the metals and where he sees the markets heading from here. Davies had this to say about the recent action, "Tuesday was the first day of what I would describe as a proper seller in the market, where the buyers were properly filled in Asia and in London. It was a mixture of speculative selling on the back of margin increases and I say speculative selling as in longs having to reduce. It was also from physical scrap that came into the markets and there was hedging of those positions."
Who says it's not 2008 all over again? 
With this acquisition, Buffett now owns a significant piece of two of the Big Four retail banks… Bank of America and Wells Fargo. His stake in the two now totals $18.5 billion.
Buffett says he got the idea while in the bathtub yesterday morning. For all we know, the story is true — in the sense that he "got the idea" when he picked up the phone while in the tub and a panicked voice from the Treasury Department was on the other end of the line.
Let's assess where matters stood at the time of Mr. Buffett's date with the rubber ducky yesterday…
And that laundry list doesn't even include the threat of lawsuits. 
So is BAC going down, Buffett's sweetheart deal notwithstanding? Don't bet on it.
The Buffett news put a nice lift into stock futures this morning. But it didn't last… All the major indexes are down about 2% as we write.
First-time unemployment claims registered 417,000 last week — well above the "expert consensus" and also far above a number that indicates a healthy recovery.
Because it has worked so well… France, Italy, Spain, and Belgium are extending their ban on short selling financial shares.
On the theory that a picture is worth a thousand words, we present the following…
Nothing wrong with shaking out the weak longs, though: Consider it a buying opportunity as we head into the heart of gift-buying season in the Middle East and India.
Traders are taking the resignation of Apple CEO Steve Jobs in stride. At $373, shares are still higher than they were two days ago. "The news wires are gushing," says Ray Blanco of our tech team, "with speculation over the impact the change in leadership will have on the company.
For the pundit-weary 5 reader: New York Times columnist Paul Krugman got punked this week. 
"I am always amazed at the comments by persons who think that Corporate America just got up and left for the sole reason of paying lower wages overseas," writes a reader reacting to the "communitarian" utopia discussion that started Tuesday.
"I would like to tell you about another example of communism," writes another reader on the same theme, "or something close to it taking place here in America these days.
| 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 |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment