saveyourassetsfirst3

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• Ed Steer at GATA Gold Rush 2011
• China Confirms Gold Price Suppression – Part 1
• China's Future Economic Power Will Disappoint
• Stocks Rally in Yet Another Futile "We are Saved" Trade; Greek 1-Yr Yield hits 97%, Gold Decouples
• Dr. Constantin Gurdgiev: If you’re looking for bubbles, don’t look at gold coins
• Seven small-cap stocks with big, growing dividends
• The Swiss Franc and Gold – A Short-lived Relationship?
• WATCH – Ed Steer – Why own Gold and Silver?
• Gadddaffy Diick sold the Farm
• Can you double your money in a month?
• Embry on JPM Morgan and its trapped silver shorts
• US Dollar Very Long Term Chart
• Stocks Rebound, Treasuries Trim Gains on Bernanke
• Gold & Silver Market Morning, September 8, 2011
• JPMorgan Trapped Short in Silver...Gold Strongly Bid: John Embry
• Bolivia Central Bank to Buy Local Gold Output to Boost Reserves
• Gold: Bullion and shares - Vanguard Wealth Series
• Gold Will Now See Massive Mainstream Fund Flows: John Hathaway
• BrotherJohnF – Silver Update – 9.7.11
• What is the gold price telling us?
• Today’s Winners and Losers
• Marc Faber: No bubble in gold
• Counting the Zeros in the US Economy
• Bull Market In Gold Over With Double Top?
• HUI/Gold Ratio
• Turtle race
• A Fofoarain take on the swiss move
• The Government Gold Rush
• The Bad Economics of Unintended Consequences
• ‘Real’ Facts about Paul Krugman on Gold & Deflation

Ed Steer at GATA Gold Rush 2011 Posted: 08 Sep 2011 05:39 AM PDT This interview was recorded in London on August 6th 2011. Ed Steer at GATA Gold Rush 2011 (5 min 28 sec): http://www.youtube.com/watch?v=Ifsy97CxiL4 info from youtube: Ed Steer, of Casey Research, explains to the GoldMoney Foundation the reasons to own gold and silver. He talks about the price of gold, central bank money printing and how to buy gold and silver. He also expects other commodities to rise on the back of easy money policies. He expects gold and silver to be broadly and officially recognised as money once more within 18 months.

China Confirms Gold Price Suppression – Part 1 Posted: 08 Sep 2011 05:21 AM PDT "The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the Renminbi [Yuan]." Read more @ goldseek.com ~TVR

China's Future Economic Power Will Disappoint Posted: 08 Sep 2011 05:04 AM PDT By Carlos X. Alexandre:c I was reading an article published by Caixin in which a variety of factors were laid out, and the potential for another quantitative easing program by the Federal Reserve would add more pressure to commodity prices due to the eventuality of a lower dollar. But a new wave of dollars in the markets will result in negative implications for China. Inflation, lingering above the country, will be even more dangerous, mainly due to the rise in commodities' prices. The country will probably answer with tighter monetary policies, probably emulated by other emerging countries. Then the following quote was added, highlighting the mindset, something that many don't quite get. International supervision over the issue of U.S. dollars should be introduced, and a new stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country. Let me get this straight. When the U.S. Complete Story »

Stocks Rally in Yet Another Futile "We are Saved" Trade; Greek 1-Yr Yield hits 97%, Gold Decouples Posted: 08 Sep 2011 03:30 AM PDT

Dr. Constantin Gurdgiev: If you’re looking for bubbles, don’t look at gold coins Posted: 08 Sep 2011 01:38 AM PDT

Seven small-cap stocks with big, growing dividends Posted: 08 Sep 2011 01:08 AM PDT From Dividend Growth Stocks: Once a company reaches a certain size, significant growth is difficult to sustain. It is often easier to achieve 10% growth in a $10 million company than grow a $10 billion dollar company 10%. Knowing this, savvy investors looking for growth will turn to small-cap stocks. Consider what Warren Buffett has to deal with. His investments have grown so large that it is difficult to achieve the same growth rates as the early years. Being so large, Buffett is forced to take significant positions and only select from the best of large-cap stocks. This dramatically limits his investment options. In 1999 during Berkshire Hathaway's (BRK.A) shareholder meeting, Buffett stated that he could generate 50% returns if only he had less money to invest and focus on small companies. It's the smaller, faster-growing companies that typically offer the highest returns. Small caps tend to be thinly traded and often not closely followed by analysts. This provides opportunity for identifying stocks trading at a significant discount to their intrinsic value. This week, I screened my dividend growth stocks database for small- and mid-cap stocks (using Morningstar's classificaion) with a yield and dividend growth at or above 4%. The results are presented below... Read full article... More on dividend stocks: How to manage your dividend portfolio in a bear market These dividend payers aren't afraid of another recession These are the stocks you should've owned during the financial crisis

The Swiss Franc and Gold – A Short-lived Relationship? Posted: 08 Sep 2011 01:00 AM PDT SunshineProfits

WATCH – Ed Steer – Why own Gold and Silver? Posted: 08 Sep 2011 12:54 AM PDT Ed Steer of Casey Research, explains to the GoldMoney Foundation the reasons to own gold and silver. He talks about the price of gold, central bank money printing and how to buy gold and silver. He also expects other commodities to rise on the back of easy money policies. He expects gold and silver to be broadly and officially recognised as money once more within 18 months. ~TVR

Gadddaffy Diick sold the Farm Posted: 08 Sep 2011 12:33 AM PDT He knew it was comming, sold 20% of Libyas Gold reserves last April. (29) tonns entered the market and that only delayed Au rising prices by a couple of months http://www.abc.net.au/news/2011-09-0...4/?site=sydney

Can you double your money in a month? Posted: 08 Sep 2011 12:01 AM PDT With the $100+ mood swings in gold, one day up the other day down. Are you planning a little sellbuysellbuysellbuysellbuyetc. to double your money in 30 days or less?

Embry on JPM Morgan and its trapped silver shorts Posted: 07 Sep 2011 11:03 PM PDT From KWN: "I've been buying gold shares, I mean this is no different than the smash that we had a couple weeks ago when they (the cartel) took it from $1,900 to $1,700. One of the reasons for the takedown is they know what's coming." Click here to read...

US Dollar Very Long Term Chart Posted: 07 Sep 2011 10:50 PM PDT

Stocks Rebound, Treasuries Trim Gains on Bernanke Posted: 07 Sep 2011 09:25 PM PDT "The world of stocks and bonds and global economies still buys into the pabulum offered by the Jackson Hole, Wyoming economists. No surprise. Stocks have been very weak and going weaker. We knew this was coming to prop-up the stock markets for this fall. Nothing is new. Life goes on as usual in trading land." -Editor "Stocks rebounded, reversing a 221- point loss in the Dow Jones Industrial Average, as investors took assurance from Federal Reserve Chairman Ben S. Bernanke's prediction that growth will resume amid equity valuations close to the lowest level since 2009. Treasuries and the dollar trimmed gains, and oil pared losses." "Markets gyrated following the Bernanke speech, in which he said the central bank still has tools to stimulate the economy without signaling he will use them. He echoed comments of three dissenting members of the Federal Open Market Committee who said U.S. economic data aren't pointing to a recession. 'If they can stick to this and let the market find its own bottom, they will come out of this stronger," James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $340 billion, said in a telephone interview. 'People will start to develop confidence this thing can recover on its own…" "Stocks initially fell after Bernanke announced no new plan to stimulate growth. He foreshadowed a $600 billion bond-purchase program a year ago at the same event in Jackson Hole, Wyoming, helping to stoke a 30% surge in the S&P 500 through April 29. The measure has retreated more than -15% since that peak amid concern the economy is stalling." -Editor: Stealth QE3 has been underway since the end of June and will not stop soon. "The Commerce Department said today that U.S. gross domestic product expanded at a +1% annual rate in the second quarter, less than the median economist forecast, which called for a +1.1% expansion. Although important problems certainly exist, the growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years," Bernanke said in prepared comments. "It may take some time, but we can reasonably expect to see a return to growth rates and employment levels consistent with those underlying fundamentals. 'This year's decline in the S&P 500 left the benchmark gauge for American equities trading at 12.7 times reported earnings as of yesterday, more than -20% below its five-decade average. Barton Biggs, founder of hedge fund Traxis Partners LP, said last week that valuations are so low they could withstand a -15% decline in profits. Earnings for companies in the index may rise +18% this year, according to the average estimate of analysts surveyed by Bloomberg. Economists predict GDP will expand +1.75% this year and 2.35% in 2012, according to of 56 respondents by Bloomberg." -Nick Baker and Rita Nazareth 8-26-11 Bloomberg.net This posting includes an audio/video/photo media file: Download Now

Gold & Silver Market Morning, September 8, 2011 Posted: 07 Sep 2011 09:00 PM PDT

JPMorgan Trapped Short in Silver...Gold Strongly Bid: John Embry Posted: 07 Sep 2011 08:55 PM PDT ¤ Yesterday in Gold and Silver Since I covered the early Wednesday morning bear raid in both gold and silver in yesterday's column, I'm not going to dwell on it again here. After the smack down, the gold price didn't do a whole lot of anything, but started heading south just a few minutes before trading started on the Comex at 8:20 a.m. Eastern time.  The bottom came shortly before 11:00 a.m. Eastern time...and the close of trading in London. The subsequent rally ran out of legs around 1:00 p.m...and gold more or less traded sideways for the rest of the New York Access Market.  Volume was very heavy once again. Silver's price pattern was very similar to gold's, except for the fact that the sell off began shortly before noon in London...and the low came just minutes after 9:30 a.m. Eastern. The silver price rallied vigorously from there...up almost $1.40 from its low...before trading sideways to down [just like gold] in the New York electronic market.  At it's low, silver was down about $1.50 from Tuesday's close, but the big rally cut the loss to only 41 cents.  Volume was very decent. The gold stocks gapped down big at the open of the equity markets at 9:30 a.m. Eastern time, but turned on a dime about 10:25...which was a huge surprise considering the fact that the gold price didn't bottom until around 10:45 a.m. By the end of the day, the gold shares had recovered all their losses...and actually finished in the plus column.  The HUI was up 0.33%...with gold down $56.30 spot. The gold price has been clobbered for the last two days in a row...and the HUI closed up both days.  As I've been saying for the last two weeks, there are very deep pockets buying gold shares at the moment. Even with the silver price closing lower for the second day in a row, Nick Laird's Silver Sentiment Index finished up 1.10% on the day.  But, like Tuesday, it could have been much worse if the big buyer hadn't been around. (Click on image to enlarge) The CME's Daily Delivery Report showed that 342 gold, along with 178 silver contracts, were posted for delivery on Friday.  In gold, the big short/issuer was the Bank of Nova Scotia with 300 contracts to be delivered.  The big long/stopper was JPMorgan in its client account.  They will receive 336 contracts on Friday. In silver, the big short/issuer was a name you don't see too often, Deutsche Bank.  They will deliver 177 silver contracts on Friday.  I'd bet serious coin that DB is one of the big silver shorts in the Comex futures market.  There were seven stoppers in total, with the biggest being Merrill.  This report is definitely worth glancing through...and the link is here. GLD had no report but, amazingly enough, the SLV ETF added 2,337,399 troy ounces. Over at Switzerland's Zürcher Kantonalbank last week, they reported a decline of 14,496 ounces of gold in their gold ETF...and a smallish 9,895 troy ounce drop in their silver ETF.  As always, I thank reader Carl Loeb for those numbers. For the second business day in a row, there was no report from the U.S. Mint. Over at the Comex-approved depositories on Tuesday, they reported receiving 215,433 ounces of silver...and shipped 36,026 ounces out the door. Here's an interesting list that Washington state reader S.A. sent me yesterday.  It shows [as of Wednesday's closing prices] how well the world's major stock indexes have done so far this year...and it's not a pretty sight. (Click on image to enlarge) Silver analyst Ted Butler published his mid-week commentary to his paying subscribers yesterday...and here's a free paragraph... "The dramatic sell-offs, particularly at times when the markets are thin, greatly outnumber in frequency any dramatic price rallies. One would think in a free market that dramatic sell-offs and rallies would roughly compare in frequency, especially when one considers that the general sweep of gold and silver prices over the past 5 or 10 years has been to the upside.  That is clearly not the case. A subscriber and professional trader e-mailed me this morning that automatic trading halts had been hit last night in Globex gold and silver to the downside, due to the sudden and violent nature of the off-hours sell-off.  Automatic trading halts are fairly rare and only occur on large sudden moves where someone is pressing the market aggressively.  I asked him how many automatic trading halts had occurred in his memory to the upside. He said he couldn't remember any but would investigate.  He reported back that, over the past year, there had been 18 automatic trading halts to the downside in silver, with only one halt to upside. In gold, there had been 4 halts to the downside and none to the upside over the past year.  I would submit that it is impossible for that to have occurred in a free market. I would further submit that I may have understated the case when I referred to the CME Group as a criminal enterprise, interested in advancing its own interests and those of its most important constituent members to the detriment of the public interest." I'm delighted to report that I don't have that many stories for you today.  It always seems to be either feast or famine in the story department. Email Print The tide turned for the precious metal stocks Wednesday afternoon on August 24th, when gold had one of its biggest down-days in history. Bolivia Central Bank to Buy Local Gold Output to Boost Reserves. Gold Will Now See Massive Mainstream Fund Flows: John Hathaway. British business leaders plead for more quantitative easing. ¤ Critical Reads Subscribe London property bubble 'about to burst' The London property bubble could be about to burst, with the number of "distressed" sellers in the capital rising for the first time, according to one property company. Nick Hopkinson, the director of PPR Estates, said that over the past few years there had been a rising number of "distressed" sellers in other parts of the country, but London had appeared to be immune as prices continued to rise. This has changed though within the past two months, with the company now reporting a jump in the number of inquiries from both residential and commercial property owners in the capital who need to access the equity in their home quickly. This sounds all too familiar.  This story, from yesterday's edition of The Telegraph, is courtesy of Roy Stephens...and the link is here. View full GSD edition British business leaders plead for more quantitative easing Business leaders are urging the Bank of England to authorise another £50bn of quantitative easing when its monetary policy committee meets today in order to boost bank lending and prevent the economy slipping back into recession. The Institute of Directors says that without an extension of the current £200bn programme of money creation, there could be "dire consequences" for the government's finances in lost taxes and higher social security spending. The warning follows figures from the Office for National Statistics that showed industrial production had unexpectedly contracted in July...and the UK economy had slowed down to a point where many business leaders and economists fear the economy stands on the edge of a double-dip recession. This story, once again courtesy of Roy Stephens, was posted over at The Guardian earlier this morning...and the link is here. View full GSD edition German Euro Ruling: Karlsruhe Demands Greater Parliamentary Role in Bailouts Germany's highest court has rejected three lawsuits against euro bailout measures, but its ruling also strengthens the role of the German parliament in determining aid for heavily indebted euro-zone countries. The new procedures are more democratic, but they could also lead to fresh turbulence on the finance markets. This story is very much worth your while.  I thank Roy Stephens once again for providing this story that was posted over at the German website spiegel.de yesterday...and the link is here. View full GSD edition German court curbs future bail-outs, bans EU fiscal union It chose to avert Götterdämmerung. The nexus of bail-outs already agreed for Greece, Portugal and Ireland are allowable under Germany's Basic Law - or Grundgesetz - because there is no "automatic" transfer of money beyond the Bundestag's control. Germany may participate in Europe's €440bn (£388bn) bail-out fund (EFSF). To prohibit the existing rescues would have brought down the temple of monetary union within days, and with it Europe's financial system. The judges did not want a global depression on their conscience. Here's Ambrose Evans-Pritchard's take on the German courts decision yesterday...and I consider this story a must read.  I found it contained in a GATA release...and the link is here. View full GSD edition Gold Will Now See Massive Mainstream Fund Flows: John Hathaway Tocqueville Gold Fund manager John Hathaway predicts that mainstream fund managers increasingly will find a place for gold in their portfolios, as nothing else is working very well. Maybe some of these funds John's talking about are the ones that have been buying up the precious metal stocks during the last couple of weeks. The blog, posted over at King World News yesterday, is well worth the read...and the link is here. View full GSD edition Gold: Bullion and shares - Vanguard Wealth Series We rarely hear anything from the precious metal investment world from the land down under. Reader Wesley Legrand, a frequent contributor to this column, runs the Adelaide, Australia brokerage firm of Grand Private Equities. Here he is in this 30-minute audio interview along with Robin Bromby...with Andrew Main as the moderator.  The interview is posted on the home page of the Boardroom Radio Australia web site.  It's in the right side-bar when the page loads up on the computer...and it starts to play immediately with no further prompting. Wesley says whenever he's accused of being a gold bug, he always answers that if you're not a gold bug, you much be a U.S. dollar bug!  Good point. The interview is from two days ago...and it's well worth the listen.  It's almost pointless to mention that I thank Wesley Legrand for sharing it with us...and the link is here. View full GSD edition Look who's watching GATA Here's a very interesting GATA dispatch that came out yesterday...and I don't want to steal Chris Powell's thunder, but here's the first paragraph of his preamble to give you a flavour of this dispatch. "Just when you start thinking that everything is futile, that everyone connected with the markets is bought off or stupid, and that "Say Not the Struggle Naught Availeth" is getting old, we find out that we're being watched -- and not just by the usual peeping Toms and repo men but by some pretty important and even sinister people." Having been associated with GATA in one form or another since 2000...all of the stories Chris mentions in this dispatch...along with this particular Paul Krugman/Larry Summers story...strikes pretty close to home for me.  You just know you're making a difference when you see something like this. I will let Chris

Bolivia Central Bank to Buy Local Gold Output to Boost Reserves Posted: 07 Sep 2011 08:55 PM PDT Bolivia Central Bank to Buy Local Gold Output to Boost Reserves Bolivian President Evo Morales enacted a law authorizing the bank to buy gold through state mining company Empresa Boliviana de Oro, Garcia Linera said in a speech broadcast by La Paz-based television station Bolivision. The bank will pay miners the same rate as traders who sell the gold to Brazil and Peru, Garcia Linera said. Bolivia's central bank has increased its international reserves 10-fold to $11 billion since 2005. This very short story was posted over at Bloomberg yesterday afternoon...and I borrowed it from a GATA release...and the link is here.

Gold: Bullion and shares - Vanguard Wealth Series Posted: 07 Sep 2011 08:55 PM PDT Gold: Bullion and shares - Vanguard Wealth Series We rarely hear anything from the precious metal investment world from the land down under. Reader Wesley Legrand, a frequent contributor to this column, runs the Adelaide, Australia brokerage firm of Grand Private Equities. Here he is in this 30-minute audio interview along with Robin Bromby...with Andrew Main as the moderator.  The interview is posted on the home page of the Boardroom Radio Australia web site.  It's in the right side-bar when the page loads up on the computer...and it starts to play immediately with no further prompting. Wesley says whenever he's accused of being a gold bug, he always answers that if you're not a gold bug, you much be a U.S. dollar bug!  Good point. read more

Gold Will Now See Massive Mainstream Fund Flows: John Hathaway Posted: 07 Sep 2011 08:55 PM PDT Gold Will Now See Massive Mainstream Fund Flows: John Hathaway Tocqueville Gold Fund manager John Hathaway predicts that mainstream fund managers increasingly will find a place for gold in their portfolios, as nothing else is working very well. Maybe some of these funds John's talking about are the ones that have been buying up the precious metal stocks during the last couple of weeks. The blog, posted over at King World News yesterday, is well worth the read...and the link is here.

BrotherJohnF – Silver Update – 9.7.11 Posted: 07 Sep 2011 08:20 PM PDT Brother John on Silver and Financial Repression. ~TVR

What is the gold price telling us? Posted: 07 Sep 2011 08:00 PM PDT Was gold struck down by lightning? After hitting a new high of $1921 per troy ounce the price of gold retreated in the face of some heavy selling which very briefly brought it down below $1800. Spot ...

Today’s Winners and Losers Posted: 07 Sep 2011 05:44 PM PDT GDX gained  by –0.14% while GDXJ gained by 0.69% and SIL gained by 1.32% Here are today's best  performing Silver stocks: Here are today's worst  performing Silver stocks: Here are today's best performing Gold stocks: Here are today's worst performing Gold stocks:

Marc Faber: No bubble in gold Posted: 07 Sep 2011 05:40 PM PDT

Counting the Zeros in the US Economy Posted: 07 Sep 2011 04:32 PM PDT Poor Mr. Obama. They're calling him "President Zero." Why? Because August produced zero new jobs. But we Daily Reckoners were way ahead of the story. Almost everywhere we look we see a circle with a hole in it. How many new jobs have been created in the last 10 years? Zero. There were about 130 million jobs in America in the year 2000. There are about 130 million today. How much more does the average wage-earner make? Zero. Adjusted for inflation, he made about $16 an hour in 2001. He still makes about $16 an hour. How much more are stocks worth? Zero. How much more does a house sell for? Zero. By all the important measures, Americans are Zero better off than they were a decade ago. But wait. They're much worse off. They have much more debt. Here are some numbers that aren't zero. In round numbers, total debt to GDP increased from around 200% to over 350%. Federal debt alone went from 57% of GDP to nearly 100% today. And now the markets are beginning to realize what happens to prices when there's too much debt in the system. The Dow was down 100 yesterday. No relief from the bear market. Gold down $3. At least, gold is moving in the direction we think it OUGHT to move. Not that we've got anything against it. But gold is up a whopping 33% this year. That ain't natural. It ain't normal. And it probably ain't gonna continue. Don't get us wrong. We're gold bugs. We believe the feds are the problem and gold is the solution. But we weren't born yesterday. And we don't think the time has come for gold to make its final, blow- off climax. No, dear...dear reader. We're still in the foreplay stage. The hot action will come later. Probably much later. In the meantime, we are in a Great Correction...and now, at last, almost everyone knows it. There was no normal recession. And now there's no normal recovery. The latest proof came from the employment numbers. The New York Times was on the story: The government report on hiring, released on Friday, prompted another round in a relentless diminution of economic expectations. The unemployment rate, at 9.1 percent, did not change last month, and the White House said it was expected to stay that high through at least 2012. The optics of a giant zero in the jobs column — more symbolically powerful, perhaps, than even a small decrease might have been — increase the pressure on President Obama as he prepares to deliver a major address on job creation next week, on Republicans who have a starkly different approach to economic revival and on the Federal Reserve, whose policy makers have been divided over the wisdom of using its limited arsenal of tools to get the economy moving again. The White House immediately seized on the report to bolster the president's impending call to action. Republicans countered that the numbers were further proof that the stimulus policies of Mr. Obama, whom they quickly dubbed "President Zero," were not working. This is not the first time that job growth, the most important measure of the economy for many Americans, has ground to a halt since the recovery. It dropped into negative territory in the middle of last year after three months of strong showings. This time, the slowdown comes after the earthquake in Japan, a spike in oil prices and the European debt crisis, in addition to political gridlock in America. No, the quack remedies aren't working. But that doesn't mean they aren't popular. In fact, we'll make a prediction. The less they work, the more popular they'll become. That's the formula for success in a city like Baltimore. You fail. They give you money. It will become the feds' favorite formula too. Their recovery claptrap won't work. The economy will drag its butt down Tokyo lane...and people will clamor for more bailouts. President Zero will have to 'do something.' We expect he'll come up with some Rooseveltian jobs program. How many real jobs will it add? A big, fat zero. Stay tuned. And more thoughts... Home again, home again...back to B-more... Baltimore is, of course, a dump. But it's our dump. We like it. Drenched in rain, the city glistens. It has been hosed down by a hurricane and now looks almost clean. Compared to the gritty streets of the Bowery and the Lower East Side, the Mount Vernon area of Baltimore is pristine. This weekend, we drove up to New York. Elizabeth's car wouldn't start after sitting for two months, so we took the pickup. The truck — a Ford F-150 — is very comfortable. But it has a badly-dented tailgate, a victim of your editor's rush to put away things just before leaving for Europe. He had backed up a little too fast and ran into a tree. So, we had to tie a piece of rope onto the bumper in order to steady the tailgate on the back of the truck. We listened to Paul Johnson's "History of the Jews" as we made our way up the New Jersey turnpike to New York. "We're going to meet a lot of Jews in New York," Elizabeth explained. "We should learn something about their history." The history of the Jews was fascinating, largely because there was so much of it. We had barely arrived at the time of David when we drove into lower Manhattan and found our rather chic hotel. We drove up to the front entrance. The valet parking attendant looked a little puzzled. It was then that we realized that we looked like hicks. We were driving up to one of the city's most fashionable and hippest hotels in a beaten up pickup truck. "This is embarrassing," said Elizabeth. "No, it's a mark of distinction," we replied. "Deliveries in the back," said the attendant. *** What is most interesting about the history of the Jews is that there is so much of it. The Jews had history when your editor's Irish ancestors still walked on four legs and barked at the moon. And what a tale it tells! Was there any tribe in the Middle East with whom the Jews didn't go to war? Was there any error, sin or misfortune that the Jews had not committed or suffered? Is there any glory they have not enjoyed? History is largely a record of war, disaster and misgovernment. And the Jews have more history than anybody. They kept records. They remembered. They taught and reminded. Menachem Begin and the other terrorists who founded the modern state of Israel in the early 20th century surely studied how their ancestor Joshua had conquered Canaan three thousands earlier. Moshe Dayan must have felt the blood of David in his veins as he slew the Arabs and Syrians. Today's president of Israel, Benjamin Netanyahu, must also learn from King Herod's example from two thousand years ago. But there has always been an uncomfortable tension between the Jewish culture and religion on the one hand and Jewish government on the other. The Israelites developed the world's most advanced and sophisticated literature. In commerce they were unsurpassed. Their religion was perhaps the most humane ever. Asked by a cynic if the Torah could be understood by a man standing on one leg, the rabbi Hillel, about the time of Christ, responded: "That which is hateful to thyself do not do it to another. That is the whole law. The rest is just commentary." But when it came to government the Jews made as big a mess of it as everyone else. David may have been a freedom fighter, but Solomon was a despot. Judah Maccabee may have been a reformer and a purist, but Alexander Jannaeus was a monster. He was the first to adopt the Roman practice of crucifixion, which he took up with some relish. In one orgy of meanness, he had 800 of his enemies crucified...and while they were still living, he had their wives and children brought out and their throats cut before their eyes. King Herod was little better. Political power corrupts. Many Jews thought they were better off without it. They figured they couldn't serve two masters. Either they were true to their religion. Or they bent to political necessities, which they saw as evil. Like the rest of us, Jews seem to do best when they stay out of politics. They flourished under the Persians, the Seleucids, even the Babylonians. The Egyptian captivity, for that matter, was probably not so bad either, at least in the beginning. But in the 2nd century AD Roman Emperor Julius Severus, putting down the Bar Kokhba Revolt, practically wiped out the Jews in Judea. That's as far as we've gotten. Regards, Bill Bonner, for The Daily Reckoning Australia Similar Posts: Salt vs. Snowflakes The Once and Future Dips of the US Economy Don't Trust the Numbers Europe Gets Obamania Will the US Economy Ever Again See Full Employment?

Bull Market In Gold Over With Double Top? Posted: 07 Sep 2011 04:27 PM PDT Market Trend Forecast

HUI/Gold Ratio Posted: 07 Sep 2011 02:40 PM PDT I expected a lot of things today… Gold getting smashed, among them.  But I did not expect to have a green portfolio with 2 hours left 'til the close.  The HUI-gold (GLD) ratio has done some good work as gold continues a very necessary and I bet, ultimately very healthy, correction. http://www.biiwii.blogspot.com http://www.biiwii.com

Turtle race Posted: 07 Sep 2011 12:50 PM PDT Most people think the greatest fraud/ponzi in the history of financial histories will just disappear overnight. There are great interests in the United States. More so, political and security interests. Those that play along with the ponzi dont get bombed and infiltrated. Those that do fleece their middle class and reap huge benefits. This is the world we live in, plain and simple. Those waiting for some imaginary overnight session when Gold Opens $600 higher and Silver opens 'limit' up at $500 an ounce are living a fairy tale. Now before you go putting words in my mouth, I truly do believe it will come, but its not going to take 24 hours when you want it to come. Slow and steady is going to win this one if you do not know what you are doing. Its a tactical game of cat & mouse shaking the leaves of the tree and seeing who is MENTALLY strong enough to stick around even when having an outstanding paper loss that's unrealized. Its understanding when the financial system should have collapsed on Monday but the bank stocks rally. Its understanding that they will not just go away. If you had trillions of dollars would you want it to vanish? This game takes Patience. Skill. Determination. Balls. Silver dips $2 and its the end of the world. Give me a fucking break. Where were you in April. Not a fuckin word mentioned that silver is 'going up to fast!" This is the problem with society. We want everything we cant have and blame others when we dont get it instead of pointing the finger back at ourselves. Enough of the social talk I am not in the mood. I bought some SLV calls today before the rally off the trend line. The rally occurred because the London fix was in and the usual 11:30 short covering started, not to mention technically it was a buy. If you want to enter the trading game you need to be a student of the game. You need to put in the hours going over charts and candles etc. Again on the new site, IN TIME, I will provide the proper tools, books, and step by step guide on what you need to do BEFORE you place a trade. Unfortunately most people hate the fact that my teachings take at least 4 months to develop the necessary skill and market gauge in order to place that first trade. Again, going back to the patience thing-everyone wants to hit a grand slam when they are 23 years old thinking that one trade will take them onto superstardam and Ferraris. Good luck with that. As far as silver goes I remain bullish. Gold, not so much until Sept 20-21, as that will be the secret battle in this new currency war and it will get tugged up and down and all around. This is a turtle race. And the PTB dont care if you are aware of it or not. Dont get caught in the shake'n bake. Anyone selling phyzz at this point is idiotic. We are on the verge of the greatest financial collapse EVER ....or...we are on the verge of the greatest money printing binge EVER then an even bigger collapse. Tell me which one Gold and Silver do not agree with? Though so. Keep stacking and be the turtle, rabbits tend to get run over before all the fireworks start.

A Fofoarain take on the swiss move Posted: 07 Sep 2011 12:48 PM PDT The Swiss National Bank press release: "The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development." The Fofarian rephrase: "Too many people are trying to store value in our currency, which is distorting it's role as a medium of exchange. We'd rather you save your wealth in something whose price increase won't impact the economy because it has minimal industrial/productive use but which many people still think is valuable anyway. Hey, I know, how about gold?" Don't know what I'm talking about? Have a look at this picture and then read this. 

The Government Gold Rush Posted: 07 Sep 2011 11:55 AM PDT Over the past few weeks, observers have been stunned that Hugo Chávez, Venezuela's socialist President of over a decade, demanded that 211 metric tons of gold (worth $12.5 billion) be returned to central bank vaults in Caracas. But the true import of Chávez' demand goes beyond the mere challenging of the status quo in how international gold reserves are handled; the real impact is that Venezuela's action is yet another signal that the halcyon years of the dollar—and of the global fiat currency system—are at an end. For decades the world has depended on money centers at the Federal Reserve in the United States, the Bank of England, and the Bank for International Settlements to hold the world's government gold. This arrangement was a remnant of the Bretton Woods system, ended by U.S. President Nixon in 1971, under which foreign currencies were redeemed for dollars by the U.S. Fed, London was a major trading center, and the BIS handled transactions amongst countries and central banks. read more

The Bad Economics of Unintended Consequences Posted: 07 Sep 2011 11:54 AM PDT  "There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen." --19th Century French economic journalist Frédéric Bastiat Many current events, most recently the drastic devaluation of the Swiss franc, offer perfect examples of how government interference in the free markets invariably has unintended consequences—usually damaging consequences that offset any intended beneficial effects. As we describe in today's WealthCycles.com Market Analysis blog, the Swiss central bank declared yesterday its commitment to printing "as many Swiss francs as necessary" to force the value of the franc lower against other currencies, as reported by USA Gold's Peter Grant: read more

‘Real’ Facts about Paul Krugman on Gold & Deflation Posted: 07 Sep 2011 11:00 AM PDT Like, OMG...Imagine wanting to buy gold because Paul Krugman advised it! Yes, the world's second-most famous beard in economics today says he's squared the fact of rising gold prices with his view that we're in economic deflation.

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