Gold World News Flash |
- News That Matters
- Euro Crisis Makes Fed Lender of Only Resort as Banks Chase Dollar Funding
- Peter Schiff - Economy Headed Over Cliff, Gold to Go Higher
- Violent Swings Leave Demand for Gold ‘Lacking Momentum’
- Crude Oil, Gold Appear to Have Resumed Post-FOMC Down Trends
- He who has the gold makes the rules
- Peaceful Wall Street Protesters Pepper Sprayed?
- TFMR Podcast #3
- Gold & Silver Pullback as Forecasted Now for the Big Opportunity – Part 2
- Peter Schiff: Economy Headed Over Cliff, Gold to Go Higher
- Silver Update: “Saving Silver” September 28th, 2011
- Our Vulture View Looking Ahead
- Central banks continue to buy gold
- Precious Metals Charts Point to Further Consolidation
- In The News Today
- Bob Chapman – Discount Gold & Silver Trading
- Down The Drain: Pulling The Plug On A Failed Fiat Financial System
- Jim Rogers: Gold Price Correction May Take Awhile, But Buy the Dips!
- Harvey Organ's: The Daily Gold & Silver Report
- Why Did Silver Drop So Much?
- Jim Rogers - Still a Gold and Silver Buyer - GoldSeek.com Radio Nugget
- For Now Silver and Gold Prices Remain in a Down Trend
- "Mexico Mike" Kachanovsky: Gold and Silver Producers Due for Big Upside
- Doug Casey: Buying Physical Gold and Silver
- Gold Drop Below 1500 is Favored
- A Look at Economic Growth During a Great Correction
- Alessio Rastani Makes Prime Time TV Circuit
- Aiding the Enemy
- Euro crisis makes Fed the lender of only resort
- Alessio Rastani Video From 16 September: “Is Gold About to Crash?”
| Posted: 28 Sep 2011 08:09 PM PDT
Ft.com Citigroup's chief executive Vikram Pandit says he expects the company will return significant amounts of capital to shareholders from 2012, the WSJ says. Mr Pandit said the bank is still on track to return capital to investors next year, http://ftalphaville.ft.com/thecut/2011/09/29/688421/citi-to-return-capit... Spain, Italy and France have extended bans on the short selling of select banks and other financial stocks, the FT reports. The French and Italian prohibitions are slated to last until November 11, while the Spanish rule remains in force until "market conditions allow" it to be lifted. http://ftalphaville.ft.com/thecut/2011/09/29/688406/spain-italy-and-fran... ING is selling its stake in Brazil's insurance group SulAmerica in a deal that is likely to be worth at least $1bn, sparking a fierce bidding war in the fast-growing Brazilian market, the FT says, citing people close to the transaction. French insurer Axa and Japan's Tokio Marine have so far emerged as the top bidders for ING's 36 per cent stake in SulAmerica, http://ftalphaville.ft.com/thecut/2011/09/29/688366/bidders-vie-for-ings...
Spain has scrapped the €7bn privatisation of its state lottery in the face of turbulent markets and mounting domestic political opposition to what would have been Spain's largest stock market flotation,http://ftalphaville.ft.com/thecut/2011/09/29/688351/spain-pulls-lottery-... Europe's top executives have experienced a third year of base pay freezes, with pay consultants warning them to expect the same again in 2012 in the new era of austerity, the FT reports. "Until we see a more upbeat macroeconomic and political climate, http://ftalphaville.ft.com/thecut/2011/09/29/688341/executives-see-salar... Mortgage fraud reports by banks rose 88 per cent last quarter as lenders were asked to take back bad home loans sold to investors, the FT reports. A US Treasury Department report released Wednesday says during the three-month period ending in June, http://ftalphaville.ft.com/thecut/2011/09/29/688301/us-mortgage-fraud-re... UK banks should cut bonuses and dividends rather than reduce lending to customers as they try to strengthen their balance sheets and cope with falling profits, the Bank of England's financial policy committee has warned. The committee, http://ftalphaville.ft.com/thecut/2011/09/29/688271/banks-warned-not-to-... The Securities and Exchange Commission is investigating Royal Bank of Scotland, Credit Suisse and other financial institutions for their handling of problem mortgage loans, the FT reports, citing publichttp://ftalphaville.ft.com/thecut/2011/09/29/688276/rbs-credit-suisse-am... A European Union proposal to impose a tax on financial transactions has been attacked by financial and business groups as an assault on the City of London and companies seeking to protect themselves against market uncertainty, http://ftalphaville.ft.com/thecut/2011/09/29/688256/businesses-and-uk-go... Federal Reserve chairman Ben Bernanke said on Wednesday the central bank might need to ease monetary policy further if inflation or inflation expectations fall significantly, Reuters reports. In his first public remarks since the Fed launched 'Operation Twist', http://ftalphaville.ft.com/thecut/2011/09/29/688241/bernanke-tells-us-to... Greece's private creditors have reacted angrily to suggestions that some eurozone countries want bondholders to suffer bigger losses than those agreed in the second bail-out of Athens. Banks and other bondholders are resisting the idea by lobbying countries such as Germany and the Netherlands, where hardliners are pushing for private creditors to write down more than the current 21 per cent agreed in July's €109bn Greek rescue, according to people close to the deal. http://www.ft.com/intl/cms/s/0/c2636c16-e9f4-11e0-b997-00144feab49a.html... Brazil's government has been forced to cut taxes on petrol imports as the country struggles to keep a lid on inflation, with national strikes over pay threatening to boost prices even higher in Latin America's biggest economy. The government announced on Tuesday that it would reduce the so-called CIDE tax, which applies to imports and sales of petrol to distributors, by 16 per cent – a move that will allow the country to maintain vital government price controls at the pumps. http://www.ft.com/intl/cms/s/0/77080a64-e928-11e0-af7b-00144feab49a.html... China has warned Asian countries against provoking it under the cover of US military power, highlighting Beijing's concern over moves from its neighbours and the US to contain its rise. "Certain countries think as long as they can balance China with the help of US military power, they are free to do whatever they want," said the People's Daily, the mouthpiece of the ruling Communist party, in an editorial on Wednesday. http://www.ft.com/intl/cms/s/0/873843be-e9bd-11e0-bb3e-00144feab49a.html... Wsj.com Germany—As Angela Merkel races to convince Germans that their continued prosperity rests on preserving the euro, she is encountering strong resistance even from those in her own party who have been traditionally among the country's most pro-European politicians. When German lawmakers vote Thursday on whether to put more money into Europe's bailout fund—a step many investors see as essential to prevent a market panic—several conservative deputies, including Wolfgang Bosbach, a prominent champion of European integration, are expected to vote "no." Mr. Bosbach, a high-ranking conservative in Ms. Merkel's Christian Democratic Union, has recently become an outspoken critic of the bailout strategy. http://online.wsj.com/article/SB1000142405297020413820457659864374617523... Syrian opposition groups are calling for the first time for an international intervention to protect civilians from the Assad regime's ongoing military onslaught, including the establishment of a United Nations-backed no-fly zone. The opposition's formal calls drew a tepid response Wednesday from the Obama administration and European governments, who said there is currently little appetite to reprise the type of air campaign that helped dislodge long-serving Libyan strongman Moammar Gadhafi last month. http://online.wsj.com/article/SB1000142405297020340550457659915072806202... In little more than a month, copper has careened into a bear market, catching commodities traders off guard and triggering alarm bells across financial markets. Copper prices have plunged 23% this month—a decline of 20% or more is commonly considered a bear market. The declines have far exceeded the slide in the stock market, where the Standard & Poor's 500-stock index has lost 5.6%. The fall in copper is seen as particularly significant because the metal is used in everything from Apple Inc.'s iPads to indoor plumbing and electrical wires, making it a good leading indicator for the global economyhttp://online.wsj.com/article/SB1000142405297020422620457659868362074489... Marketwatch.com The nation's weak labor market was "a national crisis" that required attention from the White House and Congress, Federal Reserve Chairman Ben Bernanke said Wednesday. "We've had close to 10% unemployment now for a number of years, and of the people who are unemployed, about 45% have been unemployed for six months or more. This is unheard of," Bernanke said in a question-and-answer session following a speech in Cleveland. He called for policies "that could help them find work, train for work and retain their skills." http://www.marketwatch.com/story/bernanke-calls-unemployment-a-national-... Reuters.com The yield on U.S. five-year Treasury notes briefly touched 1 percent on Wednesday, as dealers cleared room ahead of a $35 billion auction of new five-year debt. In the open market, the five-year government notes last traded down 8/32 in price for a yield of 0.99 percent, up nearly 5 basis points from late Tuesday. The result of the five-year Treasuries http://www.reuters.com/article/2011/09/28/us-markets-bonds-idUSTRE78Q1QF... U.S. businesses stepped up investment spending in August despite the upheaval caused by bitter political fighting in Washington, and some economists raised their forecast for economic growth for this quarter. The Commerce Department said on Wednesday that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, increased 1.1 percent after falling 0.2 percent in July. http://www.reuters.com/article/2011/09/29/us-usa-economy-idUSTRE78C33C20... Lehman Brothers Holdings Inc unveiled the latest in a string of settlements with major financial creditors, reaching deals with Bank of America Corp (BAC.N) and Merrill Lynch that will reduce the banks' claims against Lehman by a combined $7.5 billion. As part of the settlement, the banks have pledged support for Lehman's $65 billion bankruptcy exit plan, according to court papers filed late on Wednesday in U.S. Bankruptcy Court in Manhattan. Bank of America will reduce its derivatives claims against Lehman entities by $4.5 billion, Lehman said. Merrill Lynch, a Bank of America subsidiary since 2008, will lower its claims by an additional $3 billion, court papers show. http://www.reuters.com/article/2011/09/29/us-lehman-idUSTRE78S08M2011092... Bloomberg.com Most global investors predict Chinese growth will slow to less than half the pace sustained since the government began dismantling Mao Zedong's communist economy three decades ago, a Bloomberg poll indicated. Fifty-nine percent of respondents said China's gross domestic product, which rose 9.5 percent last quarter, will gain less than 5 percent annually by 2016. Twelve percent see such a slowdown within a year, and 47 percent said it will occur in two to five years, the quarterly Bloomberg Global Poll of investors, analysts and traders who are Bloomberg subscribers showed.http://www.bloomberg.com/news/2011-09-28/china-economy-slowing-to-5-annu... President Barack Obama for the second time this week criticized the response of European governments to the continent's debt crisis, saying the turmoil continues to be a drag on the U.S. economy. "Some of the challenges that we've had over the last several months actually have to do with the fact that, in Europe, we haven't seen them deal with their banking system and their financial system as effectively as they needed to," Obama said yesterday in response to a question about U.S. economic growth at a roundtable discussion on Hispanic issues at the White House. http://www.bloomberg.com/news/2011-09-28/obama-says-europe-s-debt-respon... Sony Corp. (6758), Japan's largest exporter of consumer electronics, said it expects a "huge impact" on earnings from the weaker euro, underscoring the company's vulnerability to the European debt crisis. Sony doesn't buy many components from Europe while its Asian suppliers settle in dollars, limiting its ability to hedge against the euro's decline, Hiroshi Kurihara, corporate treasurer at Sony, said in an interview in Tokyo yesterday. "There are no countermeasures that we can take for the moment," he said. "There is a huge impact on our earnings." http://www.bloomberg.com/news/2011-09-29/sony-expects-huge-impact-on-ear... Cnbc.com The U.S. can learn how to boost long-run growth from successful emerging economies, U.S. Federal Reserve chairman Ben Bernanke said in a speech on Wednesday that will delight developing countries more used to admonishment than admiration from Washington."Advanced economies like the U.S. would do well to relearn some of the lessons from the experiences of the emerging market economies," said Mr Bernanke. http://www.cnbc.com/id/44710677 Nytimes.com
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| Euro Crisis Makes Fed Lender of Only Resort as Banks Chase Dollar Funding Posted: 28 Sep 2011 07:10 PM PDT Fed, chastised by Congress for lending money to foreign institutions including a Libyan-owned bank, around the world it knows little about.
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| Peter Schiff - Economy Headed Over Cliff, Gold to Go Higher Posted: 28 Sep 2011 06:53 PM PDT Anything could happen in the short-run, but in the long-run, gold goes a lot higher.
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| Violent Swings Leave Demand for Gold ‘Lacking Momentum’ Posted: 28 Sep 2011 06:32 PM PDT Bullion Vault
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| Crude Oil, Gold Appear to Have Resumed Post-FOMC Down Trends Posted: 28 Sep 2011 06:26 PM PDT courtesy of DailyFX.com September 28, 2011 04:40 PM Crude oil and gold prices appear to have resumed their post-FOMC down trends having corrected higher earlier in the week. Talking Points [LIST] [*] Crude Oil Downtrend Set to Resume as Risk Aversion Returns [*] Gold Selling Resumes, ETF Holdings Hit Lowest Since Late July [/LIST] WTI Crude Oil (NY Close): $81.21 // -3.24 // -3.84% Crude oil prices turned lower despite a smaller than expected build in weekly inventories and a relatively positive surprise on the US Durable Goods report as renewed fears about sovereign risk in the Euro Zone weighed on the spectrum of risky assets including the WTI contract. Looking ahead, the focus on the EU debt fiasco will put a spotlight on Italy as it sells 9 billion euro in new debt spread across 2014-2022 maturities. Weak uptake is likely to weigh on risk appetite at large and crude prices by extension. A busy US calendar is on tap later in the day, with the third revis...
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| He who has the gold makes the rules Posted: 28 Sep 2011 06:02 PM PDT Graceland Update
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| Peaceful Wall Street Protesters Pepper Sprayed? Posted: 28 Sep 2011 05:02 PM PDT by Greg Hunter's USAWatchdog.com:
You got to wonder what kind of country we are living in when people protesting Wall Street greed and corruption are pepper sprayed. Meanwhile, the crooks that caused a global meltdown sit and look out their plush offices and collect fat bonuses. You wonder why people are protesting? How about the fact that not a single high-ranking Wall Street banker has gone to jail over this calamity, let alone been investigated. According to Professor of Economics and Law, William Black, around a thousand financial elites were successfully prosecuted in the wake of the Savings and Loan scandal of the late 1980's. How many elites have gone to jail this time—zero!! (Click here to read more from Professor Black.) Former Countrywide CEO Angelo Mozilo paid a $67 million fine, but that is not exactly a big deal for a guy that ripped-off millions from the system. The 2008 meltdown is maybe 100 times larger than what happened 20 years ago.
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| Posted: 28 Sep 2011 04:57 PM PDT from TFMetalsReport.com:
As you know, my plan is to release podcasts on a bi-weekly basis. The next scheduled interview will be posted on Saturday, the 8th. However, this afternoon I had the opportunity to visit with Bill Murphy, the chairman of the Gold Anti-Trust Action Committee, commonly referred to by the acronym GATA. Obviously, it would be silly to make you wait until next Saturday to hear it. Given the extraordinary events of the past week, I could not have asked for a better time to visit with Bill. I must ask, though, that you thoroughly read the previous post, "Crime Scene Evidence", before you listen to the podcast. To gain full value from listening, you must place current events in the proper context. Read More @ TFMetalsReport.com
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| Gold & Silver Pullback as Forecasted Now for the Big Opportunity – Part 2 Posted: 28 Sep 2011 04:55 PM PDT by Chris Vermeulen, GoldAndOilGuy.com via Silver-Investor.com: A few weeks ago I wrote about how gold was starting to top and that everyone should expect a very sharp drop to the low $1600 area. How I came to this conclusion was though the use of inter-market analysis combining price patterns, gold futures volume, the dollar index and market sentiment. This allowed me to understand what the majority of other traders/investors were thinking and feeling. By knowing each of these market variables and crowd behavior I can accurately see into the future a few days with a high probability of success and most importantly with low downside risk. Read More @ Silver-Investor.com
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| Peter Schiff: Economy Headed Over Cliff, Gold to Go Higher Posted: 28 Sep 2011 04:52 PM PDT from King World News:
With gold and silver on the move once again and stock markets gyrating, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about recent weakness in the metals and where they are headed from here, Schiff stated, "It seems like we are trying to retest the lows that we put in a couple of days ago. The metals had a snapback rally, but I don't think there is that much downside in gold and silver from here. If you look at the long-term trend line in gold, the trend line is around $1,500, so we could go there or maybe slightly below that, but it would surprise me if we had a meaningful drop below those levels." Peter Schiff continues: Read More @ KingWorldNews.com
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| Silver Update: “Saving Silver” September 28th, 2011 Posted: 28 Sep 2011 04:22 PM PDT |
| Our Vulture View Looking Ahead Posted: 28 Sep 2011 03:40 PM PDT For the Little Guys. HOUSTON – Just below we share an excerpt of the full Got Gold Report which was delivered to Vultures (Got Gold Report Subscribers) Sunday, September 25. This particular excerpt more or less explains our attitude during this harsh, protracted buyer's strike for the small, speculative and less liquid miners and explorers we enjoy 'gaming' here at Got Gold Report. Continued... We think it is important at times like these to remember that in a panic selloff, "value" becomes an abstraction, a theory. Instead, the raw and brutal laws of pure liquidity show their absolute dominance in such times. When there are more than a million shares of an issue on offer, but only a few tens of thousands of shares on the bid (or less), the price contest is no longer fair or for that matter, accurate. Except for the issues we really, really want to add shares in, a panic sell-down is merely our chance to understand exactly how much volatility is possible for the other issues we hold or track, even in an anomalous, panic event. That's easy to say, we know, but to the extent one can adopt that kind of philosophy it really will make life more pleasant. Nasty sell-downs are just time killers to Vultures, moving the eventual day of profit taking farther out in to the future.
Millrock – and many other stocks we follow - proved the theory that extreme mispricing is not only possible, it is expected during times of severe market stress. Please don't take this as being cavalier, but so what? We figure that even if we plunge into another 2008-style abyss, the world is going to want gold and silver above all other assets, and therefore it will also want the miners and explorers that are looking for and producing them.
In a panic scenario, even if our positions trade to as much as 50% or more below our entry (and who cares if it does in a panic), the vast majority of other shareholders in that same company paid a ton more. The good news? Well, it may sound Pollyanna to say it in the current environment, but we can say with authority that once the panic subsides (and it WILL subside at some point), once the extreme negative liquidity event expires, guess what? An amazing transformation occurs over a relatively short period of time. Seemingly as if a switch is thrown the liquidity turns from hugely negative to modestly positive. Optimism and positive liquidity begins to take hold and presto, it doesn't really take all that much buying pressure for the stock to move! Look again at the Millrock example above. From 3-cents to $1.05 in two years is at least a 30-bagger is it not? In December of 2008 when the world felt like Armageddon revisited, one million shares of Millrock could be had for $30,000 (if one was patient and diligent on the bid then). That same million shares would peak two years later at just over $1 million. The vast majority of people who attempt this game get frightened and they panic-sell when the "pain" gets to be too much to bear. A Vulture is wired differently. It is Vultures who are there to buy when others are panicking. Vultures, … ahem, true Vultures, are immune to panic, worry and fear. ... No, that's close, but not quite right. True Vultures become excited and energized by the fear, panic and worry of others.
(End of the excerpt).
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| Central banks continue to buy gold Posted: 28 Sep 2011 03:31 PM PDT By Rhiannon Hoyle http://online.wsj.com/article/SB1000142405297020422620457659894080351842... LONDON -- Emerging-market countries continued to top up their gold reserves in August, with Russia, Thailand and Bolivia among those to add to their holdings. Central banks have bought gold as some seek to diversify foreign-exchange reserves that have grown along with emerging market export industries. The purchases have helped drive the price of gold higher, because they absorb supply and boost market sentiment. This year, central-bank officials also began buying in earnest in reaction to the government debt woes affecting the U.S. dollar and the euro. While central-bank officials are careful not to skew the market with huge purchases or disposals, metals consultancy GFMS Ltd. said "further large official-sector purchases should help sustain prices." August was a volatile month for gold prices. Gold futures traded as low as $1,607 a troy ounce on the Comex division of the New York Mercantile Exchange on Aug. 1 and touched a record $1,909.30 an ounce on Aug. 23. ... Dispatch continues below ... ADVERTISEMENT Zacks Starts Coverage of Golden Phoenix with 'Outperform' Rating Friday, September 9, 2011 SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) announced today that Zacks Investment Research has initiated coverage of the company with a comprehensive report giving a rating of "outperform." The Zacks report provides information about the company's business model, its royalty mining growth strategy, recent acquisitions, drilling plans, and gold production. The report is available at the Golden Phoenix Internet site here: http://goldenphoenix.us/pdf/GPXM_InitiationReport.pdf Golden Phoenix Minerals Inc. is a Nevada-based mining company whose focus is royalty mining in the Americas. Golden Phoenix is committed to delivering shareholder value by identifying, acquiring, developing, and joint-venturing gold, silver, and strategic metal deposits. Golden Phoenix owns, has an interest in, or has entered agreements with respect to mineral properties in the United States, Canada, Panama, and Peru, including the company's 30 percent interest in the Mineral Ridge gold project near Silver Peak, Nevada. Please visit the Golden Phoenix Internet site here: For the company's full announcement of the coverage by Zacks, please visit: http://goldenphoenix.us/press-release/zacks-investment-research-initiate... GFMS, a unit of Thomson Reuters Corp., said central banks appear to be viewing gold as "intrinsically more sound than most, if not all" other perceived safe-haven assets, including U.S. Treasurys, German government bonds and the Japanese yen. Bank of Finland dealer and market analyst Eija Salavirta said in an interview last week that emerging-market central banks are moving into the gold market as buyers because of a lack of options available to diversify their reserves. "The big education we got from the economic crisis is that you have to diversify. And now that we are in exceptional times, [a lot of] countries…don't have that many choices," she said. The central bank of Russia, a regular buyer from its own domestic market, continued its long-term program of gold accumulation in August by adding 118,000 troy ounces to its reserves, which now stand at 27.161 million ounces, according to figures from the International Monetary Fund. Russia's holdings were up more than 7% since the start of 2011. Thailand continued to boost its reserves, lifting them 300,000 ounces to 4.4 million ounces, a step up from its January holdings of 3.2 million ounces. The Bolivian central bank lifted reserves by 225,000 ounces to 1.361 million ounces. Tajikistan and Greece also reported minor additions to their bullion holdings, the IMF data show. Net central bank gold purchases are expected to total at least 336 metric tons this year, equal to around $20 billion based on recent prices, GFMS said earlier this month. There were, however, slight reductions in some countries' reserves in August. Belarus cut its gold reserves to 994,000 ounces in August, from 1.01 million ounces, after adding to its holdings earlier in the year. Mexico, which also significantly boosted its bullion holdings early in 2011, reduced its reserves to 3.392 million ounces. In July, they had stood at 3.398 million ounces. The Czech Republic, Mongolia and Uruguay also reported small declines in their gold reserves. While GFMS forecast second-half net purchases from central banks to be lower than the first half, at 120 tons from 216 tons, the annual expected total is more than four times the 77 tons recorded last year. Join GATA here: 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:
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| Precious Metals Charts Point to Further Consolidation Posted: 28 Sep 2011 03:12 PM PDT Over the past week precious metal investors have had a wakeup call from their big shiny nest eggs. Last week's free fall in both gold and silver spot prices was enough to get investors into a panic. Read More...
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| Posted: 28 Sep 2011 02:17 PM PDT Jim Sinclair's Commentary Here are a couple quotes that are appropriate today in gold and all things gold. "Patience is sustained courage." "Wisdom is seeing many things and concentrating on one thing." –Jesse Livermore
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| Bob Chapman – Discount Gold & Silver Trading Posted: 28 Sep 2011 01:24 PM PDT |
| Down The Drain: Pulling The Plug On A Failed Fiat Financial System Posted: 28 Sep 2011 01:18 PM PDT  What I'd like to say about the blatant manipulation of the Precious Markets following the US Federal Reserve's announcement of their inept "Operation Twist" last Wednesday cannot be posted here. It would be unprofessional, and quite frankly vulgar. Suffice it to say: If you had any doubt what-so-ever that the United States of America is about to go down the toilet, abandon those doubts immediately. What we have witnessed over the past five trading days in the Precious Metals is all the proof you need that the complete destruction of life as we have known it in "the richest nation on earth" is about to forever end. When the price of REAL MONEY crumbles, as it has in a global environment of obvious fiat financial failure, the jig is finally up. Or should I say, "the rig" is finally up. Folks, the global financial system, with the US Dollar as it's reserve currency, is kaput! Globally, the price of REAL MONEY is rising with a vengeance...here in the USA, "fake" REAL MONEY, aka CRIMEX Gold and Silver paper derivatives, are falling like stones in the ocean consumed by imminent fiat financial failure. As the pathetic banks in the USA and London sell their "claims on REAL MONEY", Asians are standing in line to buy their beloved Precious Metals at STEEP PREMIUM PRICES: Vietnam gold today stood at a premium of $83.45 to world gold of $1,642.60 (Tuesday $95.96/$1,633.15). Shanghai gold closed at a premium of $11.87 to world gold of $1,658.05 (Tuesday $9.17/$1,652.30). Western investors are very distraught, especially if they cling to their charts. This "fear factor" will no doubt lead to selling on strength – and the criminal CRIMEX shorts are well supplied with ammunition with which to press their current market advantage. A great deal of physical Precious Metal is likely to change hands in the immediate future as the Eastern buyers take advantage of the pathetic and foolish West. Ray Charles could see what is going on here as the wealth of the West is transferred to the East courtesy of the criminal CRIMEX bankers and their puppet masters at the Fed, desperate to defend their now quadriplegic fiat financial system. Now completely paralyzed, the global fiat financial system is on life support, all that is left is for the plug to be mercifully pulled. Bob Chapman, The International Forecaster The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF. That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the "President's Working Group on Financial Markets," which has legitimatized corruption to conform to the Keynesian model of corporatist fascism. After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets. Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans. Let us now look at the flipside. All is not lost, because there is a limit to the damage that can be done. The paper attack on gold was concentrated and accomplished by using futures, options and derivatives. Thus far there is no evidence of any major sales of gold or silver. This in the past has generated very short terms of suppression. The fundamentals have not changed one bit and if anything they are stronger than ever. The world is in the midst of financial collapse. It could take a few months to fall or several years. We do not have a presence behind the scenes, but we do know history and we know what these criminals are up too and what the end game is and that is world government. We have to back into time sequence. That has thus far been enough to help us to make excellent calls. The call this time is we are approaching another bottom. A bottom that probably won't be seen again. Major buyers of gold and silver have to be waiting with open arms for such a great opportunity to purchase both metals at bargain basement prices. There are sovereigns who are loaded with US dollars, who have been waiting for just such an opportunity to sell them into a strong dollar market to purchase inexpensive gold and silver. Today's market is totally different than the gold and silver markets of just two years ago. Big players are big buyers. Prior to that the opposite was true as sovereigns were sellers year after year, and both were transferred from weak to stronger hands. The monetary and fiscal situations in Europe, the UK and US are in a shambles. The privately owned Federal Reserve, the Bank of England and the European central bank have all lost credibility. Just look at the reception "Operation Twist" received – bonds rose and the stock market was hit by a typhoon. The Fed has lost its credibility in the investment arena worldwide, because of forced compromise to existing problems. The fed simply didn't have the guts to implement a QE 3. If the Fed is not quickly forthcoming with a new plan the Dow could fall thousands of points. The damage to gold and silver is already in the history books and the turn back up is already taking place. No matter what the powers that be do they cannot for any period of time control gold and silver prices. There are too many buyers who want to dump fiat currencies. Under the circumstances the Twist was the wrong choice at the wrong time. Financial professionals worldwide believe it is a joke. They see the lack of proper action, the activation for events for more damaging then those of 2008 and if something doesn't happen this week markets and economies are doomed. The elitists knew this and that is why they attacked gold, silver and commodities. This was so investors would think it was a general overall retreat not a reflection of Fed incompetence. Their fall had nothing to do with reality and everything to do with smoke and mirrors. This should not surprise anyone. It has been used over and over again by the gold and silver suppression cartel. Is it "just a coincidence" that the CFTC "delayed" their vote on position limits just days before this blantant criminal assault on the Precious Metals? CFTC Provided Temporary "Reporting Relief" for Commodities 4 Days Prior to Beginning of Cartel Silver Raid From Silver Doctors 4 trading days prior to the beginning of the massive silver raid that took silver down 43% in 3 days for what appears to be the purpose of "solving" JP Morgan's 120 Million ounce naked short silver problem, the CFTC issued a public statement providing temporary relief from reporting requirements on physical commodities for large swaps traders. Just why exactly did these large commodities traders urgently need to be provided temporary relief from reporting requirements? CFTC's Division of Market Oversight Provides Temporary Relief from Large Swaps Trader Reporting for Physical Commodities Washington, DC – The Commodity Futures Trading Commission's (Commission's) Division of Market Oversight (Division) today issued a letter providing temporary relief from the requirements of the Commission's regulations regarding large trader reporting of physical commodity swaps (§§20.3 and 20.4). Because this is the first time that swaps data is being collected, this temporary relief is intended to provide sufficient time to enable both the industry and the Commission to develop and refine systems and processes that will be able to report these complex transactions. On July 22, 2011, the Commission published large trader reporting rules for physical commodity swaps and swaptions. The rules require daily reports from clearing organizations, clearing members and swap dealers, and become effective on September 20, 2011. The letter issued today provides temporary relief from reporting, as long as parties are making a good faith attempt to comply with the reporting requirements, until November 21, 2011, for cleared swaps, and January 20, 2012, for uncleared swaps. Upon the conclusion of applicable relief periods, such reporting parties must become fully compliant. This would appear, on the surface, to be the CFTC giving cover to the criminal CRIMEX bankers to assault the Precious Metals markets in any manner they saw fit, and the CFTC would turn a blind eye to their "activity". Is JP Morgan Attempting to Extricate Themselves From Short Silver Position Prior to Oct 4th CFTC Meeting? From Silver Doctors IF the CFTC are in fact preparing to finally adhere to Frank-Dodd legislation, and enforce strict position limits in silver, JP Morgan would be in a world of hurt (we're talking chapter 7 bankruptcy) had they had to cover their naked short positions at silver prices anywhere near where silver had been trading for all of 2011. I guess JP Morgan needs two more weeks to work out that problem: CFTC Pushes Back Position Limits Meeting from Oct 4th to Oct 18th By JAMILA TRINDLE WASHINGTON—The Commodity Futures Trading Commission has postponed for a second time a vote on new limits to speculation in commodity markets. The vote, which now won't take place until at least the CFTC's next scheduled meeting on Oct. 18, comes amid much debate about what constitutes excessive speculation and whether speculation is to blame for the high prices in commodity markets. Congress gave the CFTC expanded powers in last year's Dodd-Frank financial-regulatory law to impose limits on traders' speculative positions in commodity markets with a deadline of January. The CFTC put forward a proposal in January for position limits on 28 commodities and received 13,000 comments. The commission also canceled a meeting on position limits scheduled for Sept. 22. CFTC Chairman Gary Gensler has said in the past that he wanted to the five-member commission to vote on the new rule in late September or early October. The meeting delays along with staff complaints to the CFTC's inspector general about personnel issues suggest the agency is still divided over the measures. Commissioner Bart Chilton, a supporter of position limits, said he was troubled by the slow pace of implementation. "These limits were supposed to be in place earlier this year," he said in a statement. I seriously doubt we see a vote on position limits by the CFTC until JP Morgan clears their book, and gives the CFTC the "OK" to proceed with a vote. From James McShirley on the GATA page at http://www.lemetropolecafe.com/ : Well, here you have it. Yesterday, on the big rally, the gold open interest fell a hefty 16,675 contracts to 464,514, which represents shortcovering by The Gold Cartel forces after they wiped out so many unsuspecting specs, many of whom couldn't take it anymore. This is nothing more than orchestrated fraud. The silver market open interest went down just as much in a relative sense. It fell a whopping 4560 contracts to 102,014, which is an open interest of collapsing proportions, more reminiscent of silver around $5 per ounce, not at these levels. The silver open interest high in 2008 was around 178,000 contracts, with a price of silver $10 lower than it is at present. Surely JP Morgan was in there below $30 buying up all they could, laughing all the way to the bank. Love our fair and free markets! Yep, it sure looks to me like the CFTC provided cover for JP Morgan and their den of CRIMEX thieves to run roughshod over the Precious Metals markets in an effort to extricate themselves from their plethora of naked, and illegal short positions. There is no hope for America when this is what is occurring "behind the scenes" as the US Dollar reserve currency fiat financial system collapses... Ranting Andy: Math 101 September 28, 2011 RANTING ANDY – And the charade goes on….but for how long? Just a week ago, stock markets were plummeting and Precious Metals soaring due to expectations of plunging economic activity and imminent sovereign debt defaults. The Fed had just revealed that the Emperor truly has no clothes, and hope for a positive Euro debt solution (as if there is one) was rapidly dying. Then something incredible happened. The Cartel initiated OPERATION PM ANNIHILATION, making a mockery of whatever shred of reality still remained in the gold and silver markets, and stock markets rocketed upwards. Actually, only the WESTERN stock markets surged, quite ironic given that their balance sheets are dramatically worse than their counterparts in the EAST. Even more ironic is the fact that leading the charge were the very EUROPEAN BANKS closest to extinction. Can you say "dead cat bounce?" Read More Why You Should Brave the Gold Market Selloff By Eric Fry In the September 19 issue of Barron's, an interviewer asked James Grant, editor of Grant's Interest Rate Observer, whether the gold market was in a bubble. Grant replied: "A bubble is a bull market in which the user of the word 'bubble' has not fully participated. You can think of gold as a stock that went from 2 5/8 to 18 in a dozen years. I'm not sure that's a bubble… What I do think is gold is simply the reciprocal of the world's faith in the institution of managed currencies. It is one divided by T, where T stands for trust. And trust is a shrinking number and will continue to shrink. Therefore, I am bullish on gold." ME TOO! After the Fall: How Far Can Gold and Silver Climb? By Jeff The current correction may not be over, and we can count on further pullbacks along the way. But the data here suggest the upside in gold and silver is much bigger than any short-term gyration — or any worry that may accompany it. I don't know about ya'll, but the past week has been exhausting. Until the dust settles in this Precious Metals conflagration of TRUTH AND REAL MONEY vs FAKE Real Money and DECEIT, I intend to rest. See you here next week. Accept this gift of cheaper REAL MONEY from the fools on Wall Street with an open check book. 
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| Jim Rogers: Gold Price Correction May Take Awhile, But Buy the Dips! Posted: 28 Sep 2011 12:53 PM PDT ""Do not sell your silver, do not sell your gold anybody who is in this for a long term, silver & gold will both go much higher over next few years."
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| Harvey Organ's: The Daily Gold & Silver Report Posted: 28 Sep 2011 12:44 PM PDT Gold and Silver whacked prior to first day Notice
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| Posted: 28 Sep 2011 12:15 PM PDT by Kevin McElroy, SeekingAlpha.com:
While gold is currently about 15% off its highs of $1,900 – silver fell about 30% from peak to trough – in less than a month. The bulk of the drop occurred in just the last week – from $40 down to below $30. So what happened to precipitate such a dramatic fall? Well, you might remember that a similar collapse occurred back in late April, early May. And before I get into what caused both of these collapses, I do want to point out that these types of price swings are NOT rare at all for silver. It's consistently the most erratic and volatile asset out there. That doesn't mean it's not a good long-term holding for commodity investors – it just means that it's a rocky ride.
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| Jim Rogers - Still a Gold and Silver Buyer - GoldSeek.com Radio Nugget Posted: 28 Sep 2011 11:58 AM PDT Let's begin our discussion with gold and silver. You know, investors were hoping for QE3 but the FOMC, well, they disappointed the markets last week, unleashing instead Operation Twist. How do you rate Ben Bernanke's latest plan?
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| For Now Silver and Gold Prices Remain in a Down Trend Posted: 28 Sep 2011 11:45 AM PDT Gold Price Close Today : 1616.10 Change : (34.50) or -2.1% Silver Price Close Today : 30.084 Change : (1.400) or -4.4% Gold Silver Ratio Today : 53.72 Change : 1.293 or 2.5% Silver Gold Ratio Today : 0.01862 Change : -0.000459 or -2.4% Platinum Price Close Today : 1531.00 Change : -35.00 or -2.2% Palladium Price Close Today : 623.00 Change : -27.00 or -4.2% S&P 500 : 1,151.06 Change : -24.32 or -2.1% Dow In GOLD$ : $140.84 Change : $ 0.71 or 0.5% Dow in GOLD oz : 6.813 Change : 0.034 or 0.5% Dow in SILVER oz : 366.01 Change : 10.56 or 3.0% Dow Industrial : 11,010.90 Change : -179.79 or -1.6% US Dollar Index : 77.92 Change : 0.414 or 0.5% Sobriety visited the stock market today, and no one was much pleased to meet her. Dow made raggedy attempts to rise, but about 1:00 Reality and Sobriety began selling, and from there it was all downhill and Katy-bar-the-door. Dow sank 1.61% (179.79 points) to 11,010.90, vomiting back all yesterday's gains and part of the day before's. S&P lost 2.07% (24.32 points) to 1,151.06. Gone are the visions of the Great Bucket taking away all the sovereign debt problems, and returned are the grim facts of economic outlook. In Europe the eurocrats are leveraging the crisis to further their schemes of centralizing more power. Wow, now there's a surprise. US DOLLAR INDEX yesterday made the "final kiss good-bye" to its breakout point, and today gained 41.4 basis points (0.5%). Dollar's liable to run strong for a week or so, and today was already tapping on 78. The 50% retracement of the decline that began mid-2010 and bottomed in May 2011 is 80.58. The Franken-currency, the euro, continues to tumble since falling out of its trading range earlier this month. Today closed down a hair at 1.3545. Count on seeing 1.3000, and wait on 1.2000. Japanese yen remains on the upward side of a breakout and above its 20 dma. Closed today at 130.66c/Y100 (Y73.53=$1). It's a good thing markets are so tough to parse, otherwise the Riviera would be chockablock with successful investors and the room prices would skyrocket. But as it is, just about the time you think you understand what the market is doing, it pulls out the rug and your forehead dives into the concrete. Take SILVER and GOLD. They fell today, right sharply. Silver lost 140c, most of yesterday's 157c gain, to close at 3008.4c. Oddly enough, Friday's close was 3006c, about the same. Gold closed Comex at $1,616.10, down $34.50. Clearly, resistance at $1,675 yesterday has proven victorious, but gold couldn't be broken below $1600 -- today's low hit $1,598.60. So you look at that and the last few day's trading, and naturally your little mind extends that fall indefinitely out into the future. But the premium on US 90% silver coin rose yesterday, and today again. Now wholesalers are buying 90% at 85c an ounce under spot and selling at 25c over. Look over your shoulder, too, at that Gold/Silver Ratio, which broke out over 45.50 resistance and has traded as high as 54.481. These things argue AGAINST lower prices. The SILVER PRICE defended 2950c today, too, and if it can hold that, then Monday becomes a spike bottom. The GOLD PRICE defended the $1,600 level in like manner. So far, so good, but the past 3 days action also might be a reaction to a low, rolling over and turning down once again. As I said, if this was easy, we'd all be living on the Riviera, smoking two dollar seegars, drinking Ripple, eating gooey-center bon-bons and driving big Chevys. Scoping these markets is all the more tricky because so many huge traders use computer programs, which exacerbates, accelerates, and exasperates every move up or down. But I am anticipating. For now SILVER and GOLD PRICES remain in a down trend and have done nothing to contradict that. Be patient, keep your money dry and ready to buy more silver and gold. I apologize that our phones have been so jammed since Friday that we have not been able to return calls timely. Please forgive us. For those of you who want to swap GOLD for SILVER at our trigger point 57.5, I suggest that rather than try to reach us while everybody in the world wants to make a trade or ask a question, you enter an open order with us. That way when the market hits the trigger, we enter the order, but you need to understand that an open order is just like entering an order with us by phone. Unless you call and terminate it before the market hits the trigger price, we will enter the order and cannot later change or cancel it. To enter an open order you must make a $200 deposit, refunded when the order is entered or if you terminate the order before it is entered. For a letter that explains all this and offers a form for the open order, please send us an email at 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. WARNING AND DISCLAIMER. 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 short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| "Mexico Mike" Kachanovsky: Gold and Silver Producers Due for Big Upside Posted: 28 Sep 2011 11:13 AM PDT The Gold Report: Gold juniors fared worse than most equities in the economic collapse of 2008. Now economic fears are gripping the market once again. The S&P 500 has been trending down since mid-June. Many fear a double-dip recession—if not worse. Why do you still believe in junior precious metal equities given the current market conditions? Mike Kachanovsky: We are in a double-dip recession. A lot of market commentators still feel that we can avoid that, but I think we're right in the middle of it. I am still bullish on the junior mining stocks for the reason that, unlike most other business models, mining companies have stronger fundamentals down the road. Most of these juniors that have commenced production are making money now and their outlook is to make even more money going forward. I like the junior resource stocks and I tend to shun the more conventional sectors for investors. TGR: Investors exited precious metal juniors en masse in early August when U.S. politicians co...
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| Doug Casey: Buying Physical Gold and Silver Posted: 28 Sep 2011 11:13 AM PDT Author: Doug Casey Synopsis: Doug discusses reliable resources for buying precious metals, good forms of them, and where to store one's stash. L: So Doug, gold has dropped from its $1,917.90 high last month down to $1,540 yesterday and is currently hovering around $1,650. I know you don't believe $1,900 was the top, but is this correction good enough – are you buying again? Doug: Well, I hate to recommend buying anything that's gone up six or seven times in the last decade, but for all the reasons we've discussed in our recent conversations, as we exit the eye of the storm – first and foremost of which being the creation of trillions of new currency units – I am convinced gold is going much higher. So, yes, I do see the current correction as a buying opportunity. L: In addition to the US roughly tripling its money supply in the last couple of years, th...
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| Gold Drop Below 1500 is Favored Posted: 28 Sep 2011 10:12 AM PDT courtesy of DailyFX.com September 28, 2011 06:53 AM 300 Minute Bars Prepared by Jamie Saettele, CMT “Gold plunged last week and reversed just shy of its 200 day average, which hasn’t been reached in over 2 years! An impulse is unfolding from the high so expectations are for this rally to reverse near the current level and for gold to drop in a 5th wave to a new low.” Trend Strength (M,W,D) – 3, 0, (2) Latest Video Weekly Forecast COT Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market. Send requests to receive his reports via email to [EMAIL="jsae...
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| A Look at Economic Growth During a Great Correction Posted: 28 Sep 2011 10:00 AM PDT We've a couple of corrections to deal with today, Fellow Reckoner. First, a minor one. Then something much larger… In yesterday's issue, the guest column was mistakenly attributed to Frank Holmes, whose insightful material appears occasionally in these pages. The essay that we featured, however, was actually penned by Mr. Jeff Clark, an editor with Casey Research. Our apologies to Mr. Clark for this oversight. A version of the column — complete with corrected byline — can be viewed here: After the Fall: How Far Can Gold and Silver Climb? — By Jeff Clark Now onto the second order of business, the other correction…something Bill has long been calling "The Great Correction." Fellow Reckoners already know that what we're seeing play out today is hardly the garden variety, single — or even double — dip "recession" the talking heads on television squawk about daily. Indeed, the very nature of a double dip implies that, somewhere between the first dip and where we are today there existed some kind of "recovery." Various politicians and economists spent the better part of the past couple of years selling this idea to Johnny and Janey Main Street, trying to convince them that what happened in 2008 was merely a blip on an otherwise uninterrupted upward trajectory. Things would soon return to "normal," they said. There was even a whole season branded the "Summer of Recovery." Of course, there was no such recovery. Stock markets are still down 30% — more or less — from their pre-crash highs. Meanwhile, millions more Americans have joined, first, unemployment lines and, second, parents' and friends' couches, too disillusioned to even bother looking for a job. The longer they remain unemployed, the larger the drain they become on the welfare state designed to pay them not to work. And even if they do get back on the job, they will likely toil for less than they were paid ten years ago; another sign that the Great Correction is doing its work. News out yesterday confirmed that the average wage of an American worker has actually declined over the past decade — down 7% to $49.5k. "Economists talk about the lost decade in Japan," Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities told CNN. "Well, with these 2010 data, we can confirm the lost decade for the American middle class." There you have it: The first lost decade of the Great Correction. Japan — proving these things CAN go on longer than is generally expected — just embarked on its third zero-growth, go-nowhere decade. And the Japanese had a private savings base to cushion the initial blow. The Americans have no such thing. They were already deep in the red when their star-spangled correction came due. More importantly, many jobs that were lost during the past few years will never return. Not at any wage. They're gone for good. That's not necessarily a bad thing in and of itself, of course…it's just the way it is. As technology evolves, it replaces much of the need for human labor. You might think equal or higher productivity with less human input would be a good thing. You might likewise think that being afforded more free time to spend on other productive endeavors would be a good thing too. And you'd be right. But you'd also be unpopular…and unlikely to win any kind of election. Back in the early 19th century, for example, English textile workers protested that the introduction of mechanized looms was gutting their sector, leaving tens of thousands of people without work. Those in the agricultural sector who were replaced by threshing machines thought likewise. The machines simply did a better, cheaper job than the workers…and they didn't stop to take cigarette breaks or complain about the weather. The result was a huge increase in productivity, but fewer job openings for unskilled workers. Needless to say, not everyone was happy about this progress. Angry bands rallied behind General Ned Ludd — after whom the Luddites were named — to burn factories and destroy the machines that had replaced them. [We don't know if they used hammers or tools to break the plant equipment but, sticking to their core philosophy, they could have employed dozens more vandals if only they restricted their actions to hands-only destruction...and twice as many again if they instituted a one-handed destruction policy.] Today, you might think people would peg Luddite "logic" for what it was: ass-backward and myopic…at best. And yet, just a few months ago, a prominent US congressman accused Apple of killing jobs in the United States because bookstores like Borders and Barnes & Noble could no longer compete with the iPad and its eBook application. The giant retailers couldn't cut it in the marketplace and had to close their doors. Thousands of workers went with them. Apple had out-played and out-innovated the competition, in other words, just like the looms and threshers of the early 19th century. And yet, rather than inspire applause, this innovation was met with condemnation. Not only had the company out-innovated, scorned the congressman, Apple had chosen to manufacture its products in a country where…gulp…labor was cheaper and more competitive than minimum wage advocates would allow for back home. How dare Apple not overpay on costs, seemed to be the allegation. And how dare they be subsequently able to offer a cost-effective technology that millions chose freely to buy…including the congressman himself! There's no point breaking loom frames, threshing machines and iPads because advancements in technology mean it takes fewer people to produce the same or greater output. Instead, smart individuals and companies will learn to do what Luddites and giant bookstores failed to do: they will adapt and embrace technology and use it to their own competitive advantage. Joel Bowman A Look at Economic Growth During a Great Correction originally appeared in the Daily Reckoning. The Daily Reckoning provides over 400,000 readers economic news, market analysis, and contrarian investment ideas.
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| Alessio Rastani Makes Prime Time TV Circuit Posted: 28 Sep 2011 09:36 AM PDT The "BBC TV" trader, whose clip Zero Hedge first presented to the broader world and has since become an internet sensation with well over 1 million views, has just made the prime time TV circuit with a first stop on CNN. Here is some more of his story. Jim Boulden has more:
Full clip:
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| Posted: 28 Sep 2011 09:14 AM PDT Addison Wiggin – September 28, 2011
Up to 20,000 of them were under the close guard of Libya's Col. Gaddafi… until the Arab Spring began to bloom in the desert in his backyard. Now? "People can literally drive up with pickup trucks or even 18-wheelers and take away whatever they want," says Peter Bouckaert of Human Rights Watch, who was in Libya at the time… and took pictures. "I myself could have removed several hundred if I wanted to." 
The White House is promising to "deploy additional personnel" to track down the Libyan missiles. Right now there's one State Department official and five contractors on the job. Tracking down as many as 20,000 missiles. "We expect in the coming days and weeks we will have a much greater picture of how many are missing," a State Department flunky tells ABC News. Actually finding them? He makes no promises. The mainstream media are abuzz with concern these rockets will fall into al-Qaida's hands. The real story is more covert: This isn't the first time U.S. intervention has ended up arming Islamist militants.
The most recent one shipped in 40 tons of weapons and ammunition during late spring 2009, trying to prop up a puppet government. Many Somali soldiers immediately turned around and sold the weapons to traders… who sold them on to rebel groups, including the hard-line al-Shabaab. The trade continues to this day. "The U.N. estimates," according to war correspondent Robert Young Pelton, "that one-third to a half of all ammunition supplied by the United States to [African Union peacekeepers in Somalia] ends up in the hands of al-Shabaab."
This is the logic behind the staggering growth in the use of pilotless drone aircraft. To date, the U.S. government has used them to carry out attacks in six countries: Iraq, Afghanistan, Pakistan, Yemen, Somalia and Libya. Now the Pentagon is building what The Washington Post describes as a "constellation of bases" to support routine drone strikes in the Horn of Africa and the Arabian Peninsula. The aim? "To create overlapping circles of surveillance in a region where al-Qaida offshoots could emerge for years to come," U.S. officials said. The number of U.S. drones has exploded 100-fold in a decade. They number more than 6,000 today. Drone strikes that numbered in the single digits in 2007 numbered 118 last year. That guarantees a steady stream of business for one company that's been on Byron King's radar. It produces a lightweight but very strong material that's essential to drone aircraft and a host of other uses. In fact, "this small Canadian company," says Byron, "has discovered a way to manipulate its unique properties to make it strengthen and lighten satellites and space structures, aircraft, optical systems, semiconductors, medical imaging and nuclear systems." In addition, the firm "has also acquired the rights to mineralized properties in two Western U.S. states and Brazil… so they can provide their own metal to their production line." It's one of three companies Byron is eager to tell you about in a package of special reports he recently updated. They're still available for the next 36 hours, along with a membership in his premium advisory Energy & Scarcity Investor, at a substantial discount. This offer expires tomorrow night at midnight, so it merits your attention right now.
Yesterday, the Dow rocketed up 300 points on rumors of a "solution." Then it gave half those points back when the Financial Times reported that up to seven eurozone governments were insisting that Greek bondholders take bigger losses than had been previously discussed. Oy… Expect this to go on through all of October, right up to when the G-20 is supposed to come up with its final, ultimate, this-is-it solution on Nov. 4. Tomorrow, traders will turn their gaze toward the German parliament — which votes on whether to expand the eurozone bailout fund. In one of those ironies arranged so well by the gods of comic timing, tomorrow is three years to the day since another pivotal vote: The U.S. House voted down the first iteration of the TARP bill… sending the Dow plunging 777 points. As of this writing, the Dow is a shade below 11,200.
One-third of cities surveyed are cutting workers this year. Forty percent are raising fees, and half are delaying or canceling public works projects. "Lower property values and declining sales," the report warns, "may portend something entirely new, a 'new normal.'"  "Municipal governments made some rosy projections based on tax revenues during a bubble economy," reflects Gary Gibson in today's Whiskey & Gunpowder. "The real estate bubble was generated by the Fed's manipulation of interest rates to the low side." "Now that that bubble is deflating — despite the Fed's best efforts — the real estate tax gravy train has been derailed. Jobs generated by the bubble economy have disappeared. People have less money to spend and are more afraid to spend what they have." For some startling examples of the real-life impact in one state, check out Gary's full account at this link. And for ideas on how to prepare when the impact reaches your town, look here.
Silver is living up to its reputation as the more volatile metal. It's down nearly 3% and clings to $31 by its fingernails.
"So if it is up this year or 11 years in a row, gold is overdue for a correction and it could have a nice substantial correction, given that it has been so strong." "I have no idea what is going to happen this year. I doubt if it will go to $2,000 an ounce in 2011. It is more likely to have a correction which will last for several weeks, several months." "When fear permeates a market, everybody sells, especially the last ones in — frequently have to jump out. They have raised margin requirements for both silver and gold. So that makes it more and more difficult for people to hold on." "I barely pay attention to the price, but I know a lot of people do and that is why you have these sudden spikes up and down."
 "Law schools," reports The National Law Journal, "will not have to report to the American Bar Association the percentage of their 2010 graduates who landed jobs requiring bar passage or the percentage of graduates in part-time jobs." Last Friday, an ABA committee wrapped up its work preparing its annual questionnaire for law schools, omitting the usual questions about job placement. The move is "prompting criticism from some reformers," the magazine goes on, "that the ABA is protecting law schools from reporting what would surely be grim statistics." Heaven forbid! So now it's up to independent efforts to track just how pitiful the placement rate is. Washington University's Brian Tamanaha looked at numbers compiled by a group called Law School Transparency. Result: At 30 ABA-accredited schools, 50% or fewer of the 2009 graduates had landed a job requiring a law degree after nine months. "Sure," quips Byron King, whose CV includes business law in addition to oil field geology and Navy pilot experience, "why report on the job prospects of the graduates? Once you have their money, who cares? "Does Delta airlines report on the job prospects of the passengers? Law schools or airlines, you're buying a ticket so they can take you for a ride."
"As I understand it," the reader goes on after catching his breath, "this lesson was learned in the 1930s with the Glass-Steagall Act, which was taken off the books a few years ago. Instead, we get Dodd-Frank, which solved nothing. Glass-Steagall should be re-enacted so that the U.S. doesn't have to bail out those banks again! Save Our Banks ('SOB')!" The 5: In one of the more intriguing votes of Ron Paul's congressional career, he voted against S. 900 — the bill that repealed Glass-Steagall in 1999 and tore down the regulatory wall separating commercial banking and investment banking. "The rapidity and severity of changes in economic conditions can affect prospects for individual institutions more greatly than that of the overall economy," he said in a prophetic speech on the House floor. "The Long-Term Capital Management hedge fund [which failed the year before] is a prime example. New companies start and others fail every day. What is troubling with the hedge fund bailout was the governmental response and the increase in moral hazard." "This increased indication of the government's eagerness to bail out highly leveraged, risky and largely unregulated financial institutions bodes ill for the post-S. 900 future as far as limiting taxpayer liability is concerned."
"They will be needed so they can be trained to shoot to kill the mobs that will be spilling out into our streets in protest of the lack of jobs and injustice in this country, because they will be unable to count on the veterans returning from the Middle East mess to kill American citizens." "It will take some nice incentives to pull this trick off with the 'rookies' they'll be putting on the streets for 'crowd control'! Lots of taxpayer dollars will be needed, which may be triggers for even more protest!" The 5: According to the aforementioned National League of Cities study, one in five police departments has cut spending on "public safety." So yes, the push-pull dynamic you describe is already in motion: fewer police on the streets, more trouble on the streets, higher taxes to hire new police and so on. It's one thread in a troubling tapestry we weaved in our summer forecast. Before it's overtaken by events, you might want to give it a look.
"Now foreign banks are protesting, and finance ministers from other countries. But will American companies sooner or later be responsible for our U.S. expatriate employees reporting to the IRS?" "How much 'collateral damage' it will create? Who will be willing to accept a job outside the U.S., and how it will negatively impact American companies? How it will impact my cost of managing human resources, adding another layer of bureaucracy?" "The job creation message is still paradoxical: Keep your cash outside the U.S. or we will tax you. And try to not expand outside U.S. and develop worldwide markets or we will double tax your employees." The 5: For God's sake, don't give them any ideas! Cheers, Addison Wiggin P.S. "Engineers and researchers at Boeing Co. and the Massachusetts Institute of Technology have developed an iPhone application," according to the Los Angeles Times, "to fly a miniature drone aircraft from some 3,000 miles away.  "The Pentagon is testing all manner of smart devices, including iPhones and iPads, for action in the war zone," the paper goes on. "It has kicked off a race among software companies and defense firms to develop innovative apps for future soldiers to operate." We're certain those future soldiers will be controlling gear that relies on what Byron King calls "the fourth element." Byron opens your eyes to the profit potential of this miracle metal in this presentation. Be advised: It will be available only through midnight tomorrow night.
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| Euro crisis makes Fed the lender of only resort Posted: 28 Sep 2011 09:12 AM PDT Euro Crisis Makes Fed Lender of Only Resort as Banks Chase Dollar Funding By Craig Torres and Caroline Salas Gage http://www.bloomberg.com/news/2011-09-28/euro-crisis-makes-fed-lender-of... The Federal Reserve, chastised by Congress for lending money to foreign institutions including a Libyan-owned bank, is once again the lender of last resort for banks around the world it knows little about. Three years after the collapse of Lehman Brothers Holdings Inc., money-market borrowing rates for dollars are rising, leading the Fed and European Central Bank to make the currency available to Europe's institutions for as many as three months. U.S. prime money-market funds cut their exposure to euro-zone bank deposits and commercial paper, or short-term IOUs, to $214 billion in August from $391 billion at the end of last year, according to JPMorgan Chase & Co. data. The failure of regulators worldwide to address European banks' fragile dependence on short-term funding is "putting the Fed in a really awkward position," said Karen Shaw Petrou, managing partner at Federal Financial Analytics, a Washington regulatory research firm whose clients include the biggest U.S. banks. The swaps with Europe "are an extremely advantageous political football" for critics of the Fed, she said. The extended funding comes as the U.S. central bank is already under fire for its unprecedented monetary stimulus. Republican leaders including Rep. John Boehner of Ohio and Sen. Mitch McConnell of Kentucky wrote Chairman Ben S. Bernanke and the Board of Governors on Sept. 19, asking them to "resist further extraordinary intervention in the U.S. economy." ... Dispatch continues below ... ADVERTISEMENT Be Part of a Chance to Discover Multi-Million-Ounce Gold and Silver Deposits in Canada Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600. Rep. Ron Paul, a Texas Republican who wants to abolish the Fed, and Sen. Bernard Sanders, a Vermont independent, have criticized its loans to foreign institutions. "The Fed has made good on most of its investments over the years, but increasing its exposure and that of the U.S. government to foreign banks is a moral-hazard problem," said Edward Royce of California, the third most senior Republican on the House Financial Services Committee. "We are effectively incentivizing U.S. money-market funds to continue to finance these banks." U.S. regulators also are becoming less patient with what are turning out to be dollar-funding runs against foreign banks. Financial institutions are too dependent on short-term money-market investors that tend "to flee at the first signs of distress," William C. Dudley, president of the Federal Reserve Bank of New York, said Sept. 23 in a Washington speech. Regulators also lack access to data on foreign institutions operating in the U.S. that would allow them to "make informed judgments about the adequacy of such firms' capital and liquidity buffers," he said. Investors are fleeing because of concern that banks will take large losses if a euro-zone nation such as Greece defaults. Europe's debt crisis has generated as much as 300 billion euros ($407 billion) in credit risk for the region's banks, the International Monetary Fund said last week. Against the euro, the dollar is heading for its biggest monthly advance since November last year as European policy makers fail to contain their region's sovereign-debt crisis. The euro traded at $1.3606 as of 1:25 p.m. today in New York. The London Interbank Offered Rate at which banks say they can borrow for three months in dollars rose for a 14th day today to 0.36856 from 0.36522 percent yesterday, according to data from the British Bankers' Association. The ECB said Sept. 15 it will coordinate with the Fed and other central banks to provide three-month dollar loans to banks to ensure they have enough of the currency through the end of the year. The Fed bears no foreign-exchange or credit risk on the swap lines because the Frankfurt-based ECB is its counterparty. There were $575 million in outstanding swaps with foreign central banks as of Sept. 21, Fed data show. The ECB loaned a similar amount of cash to two euro-area banks earlier this month in seven-day transactions. The first of three ECB three-month dollar-loan offers starts Oct. 12. The Fed facility provides a critical "ceiling" on funding squeezes that allows investors to avoid panic and distinguish between healthy and troubled banks, said Jerome Schneider, head of the short-term strategies and money-markets desk at Pacific Investment Management Co. in Newport Beach, California. "What you don't want to have is liquidity risk become intertwined with solvency risk," Schneider said. The swap lines are "the foundation right now to provide a backstop." After the criticism earlier this year of lending to overseas institutions -- including Arab Banking Corp., part-owned by the Central Bank of Libya, after Lehman collapsed in 2008 -- New York Fed researchers said U.S. branches of foreign banks were among the biggest borrowers from the discount window because they lack deposit bases. The window is the Fed's oldest backstop-lending tool. In an April 13 post on the New York bank's research blog, the researchers said these institutions have relied more heavily on so-called wholesale funding for dollars, including the money markets and foreign-exchange swaps. Supporting these banks helped maintain foreign investment in the U.S., they said. The Fed "does need to be concerned about how a liquidity run on the European banks will impact us -- our financial markets, our financial institutions, the economy as a whole," said Republican Rep. Kevin Brady of Texas, the vice chairman of Congress' Joint Economic Committee. It needs to define its safety-net policies and use the extension of its credit as a lever to persuade European regulators to work on funding stability, he added. He will call on Bernanke to address these concerns at an Oct. 4 hearing, he said. "The Fed's lack of a lender-of-last-resort policy really does create tremendous market uncertainty" and provides an incentive for institutions "to run to the politicians," Brady said. "It does create moral hazard, no doubt about it." Euro-zone banks and other institutions were more than $350 billion in debt to the Fed's emergency-lending facilities at one point during the 2008-2009 financial crisis, according to data compiled by Bloomberg News. The analysis was based on Fed documents released earlier this year after court orders upheld Freedom of Information Act requests by Bloomberg LP, the parent company of Bloomberg News, and News Corp.'s Fox News Network LLC. Fed lending to these entities totaled more than $100 billion on an average day. Dexia SA), based in Brussels and Paris, was the biggest euro-area borrower, with as much as $58.5 billion of Fed loans on Dec. 31, 2008. BNP Paribas SA in Paris borrowed as much as $29.3 billion on April 18, 2008. The largest U.S. borrower, New York-based Morgan Stanley, took $107.3 billion of loans on Sept. 29, 2008. Banks that rely on unstable short-term funding risk having to return to official sources for money until liquidity and capital are bolstered, said Viral Acharya, a New York University Stern School of Business professor and author of books on financial stability. "All the national regulators have to agree that their banks need to raise capital," he said. "The regulators are not sufficiently united. No one country is taking the leadership to realize the problem is getting out of hand." The Basel committee said today it would speed up work on a minimum liquidity rule designed to make lenders more resistant to a short-term funding crunch. Work on "key areas" of the so-called liquidity-coverage ratio now will be completed "well in advance" of the original mid-2013 deadline, the committee said. The measure is scheduled to take effect in January 2015. While the Fed is legally required to lend to banking entities in its districts, it "does have a choice" regarding how it will extend the swap lines, said William Poole, former president of the Federal Reserve Bank of St. Louis. "European governments have substantial dollar holdings of U.S. Treasury securities, so why not sell some of their dollar securities to support their own banks?" Join GATA here: 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. 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
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| Alessio Rastani Video From 16 September: “Is Gold About to Crash?” Posted: 28 Sep 2011 09:11 AM PDT Stacy Summary: Video from the infamous dude who trades and loses his own money and so is mocked by the media monkeys who only consider the TBTFs who lose other people’s money as somehow legitimate traders, even now 3 years, … Continue reading
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In case you didn't notice, silver dropped WAY more than gold recently.
Here's a comforting thought: Somewhere out there are thousands of heat-seeking surface-to-air missiles… perfect for shooting airplanes out of the sky… and, at present, unaccounted for.
According to U.S. State Department figures, more than 40 civilian planes have been hit by surface-to-air missiles since the 1970s.
It happened in Somalia too. Four consecutive U.S. presidents have been unable to resist trying to arrange affairs there in a way more to their liking.
In a perverse development, this will have the effect of padding Pentagon budgets and contractors' bottom lines, as Washington creates more enemies it then has to knock down.
U.S. markets are seesawing today on whatever nuggets of news come out of the soap opera in Europe.
Slumping property tax collections are taking an increasing toll on local governments, according to a report by the National League of Cities.
Gold is holding its own after yesterday's modest recovery. The spot price is barely changed this morning, at $1,643.
"Gold has been up 10 years in a row," says commodities investor and Vancouver veteran Jim Rogers, "which is very unusual in any asset class."
Following the housing and credit bubble collapse, we've been expecting a correction in higher education costs. Looks like we may be making some progress on that front. Exhibit A: Law Schools
"It seems to me," a reader writes, "that if the U.S. government is on the hook for up to $250,000 for each depositor in a bank, and the U.S. government is going to bail out banks, and some of those banks are risking their assets by issuing derivatives to insure against a Greek default… then the U.S. government should make sure that banks are not risking bank assets by investing in risky derivatives."
"All major cities will have to hire a lot of police officers in the coming year because of the coming 'troubles'," a reader predicts after seeing our account of the confrontation between New York police and the "Occupy Wall Street" protesters.
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