saveyourassetsfirst3 |
- AG Trucano Deal Dilutes UWN; I'm Still Bullish
- Fed Needs To Be Proactive, Not Reactive, On Europe
- A Precious Metals Trading Strategy
- Dave Skarica 11-9
- Another Finger in the Dike
- The Euro End Game Begins
- LISTEN: Ross Norman talks to Dominic Frisby
- ‘Tis the Season for Gold?
- Vince Lanci's Gold Update 11.10.11
- Gold Isnt All That Glitters
- Silver Institute Releases Silver Investment Market Report
- Is It Gold Season?
- Gold and Silver Confiscation
- This could the most dangerous woman in America
- Europe is Uninvestable & Gold is the Antidote
- Italy Crisis Goes From Bad to Worse
- Financial Times Deutschland Joins Hunt for Germany’s Gold
- Italy Sparks Market Bloodbath: Financial Stocks Collapse
- James Turk: “Expect Cataclysmic Events in the Coming Weeks”
- Keiser Report: Gold & Currency Wars with Jim Rickards
- Mark Ames: Why Finance is Too Important to Leave to Larry Summers
- Secret Gold Price Suppression Won't Last Much Longer: Jim Rickards
- US Mint buys more gold, silver from Sunshine
- Gold and [corporate] bonds are all that's left
- Will the eurozone crisis send the gold price soaring?
- Upcoming 'Cataclysmic' events are crisis of socialism, not capitalism, Turk tells King World News
- Italy's borrowing costs surge above 7 percent
- Gold & Silver Market Morning, November 10, 2011
- BrotherJohnF: Silver Update – “Range Expansion”
- The (In)Significance of Money, Part 2
| AG Trucano Deal Dilutes UWN; I'm Still Bullish Posted: 10 Nov 2011 04:57 AM PST By Jeff Moore: I have received several comments (both on Ragnar and on Seeking Alpha) and a lot of emails asking for my thoughts on the AG Trucano deal. Generally, readers are asking how I view the dilution, right after they talk about how much they dislike the deal. While I generally dislike dilution, and am somewhat surprised that the company couldn't have negotiated better terms, we do need to be level-headed and view this from a practical standpoint. First and foremost, we can't forget that Nevada Gold & Casinos (UWN) is a super small company. It isn't on the investment radar of most. Additionally, big investors that have more money than God to allocate (and to some extent, end up making the markets pretty efficient) are not able to invest $4-$5 million in this company and have it move the needle on their results. This vacuum of funds makes it hard for Complete Story » |
| Fed Needs To Be Proactive, Not Reactive, On Europe Posted: 10 Nov 2011 04:37 AM PST By David Beckworth: Brad DeLong says here what I have been thinking for some time:
Exactly. The Fed needs to be proactive, not reactive, otherwise it risks making the same mistakes it made in 2008. Here is what I said along these same lines earlier this year:
Complete Story » |
| A Precious Metals Trading Strategy Posted: 10 Nov 2011 04:24 AM PST By Kevin McElroy: I should preface today's article with the statement that I'm not a trader. I rarely trade, and when I do, it's only when I have a very strong reason to believe that a short-term or intermediate-term move could be significantly profitable. But I have made some "trades" within the larger context of my precious metals investment thesis. Now, the premise underlying all of my trades is that precious metals will continue to outperform. That's the reason I own physical gold and silver. If I didn't believe these two metals were going to outperform, I'd sell them, and moreover, I wouldn't engage in the trading strategy I'm about to reveal. Now, before I get into the trades - I want you to know that I don't go short metals. I don't use commodity futures. I only go LONG metals - which means that I'm typically buying one metal instead of another. Complete Story » |
| Posted: 10 Nov 2011 04:22 AM PST Dave Skarica and I discuss gold stocks, junior gold stocks and the ongoing troubles in Europe.
|
| Posted: 10 Nov 2011 04:18 AM PST
Italy has wrestled Greece out of the top spot in the Euro Trash Sweepstakes and I wonder if the gold-silver ratio will finally turn up from its consolidation. If so, liquidity is going to go bye bye. But aside from the ifs – as in 'I wonder if the US Fed is going to use the cover of the Euro crisis to try to inflate once again?' – gold stands alone in the asset world, as a safe monetary haven. Sure, the USD will get bid up by casino patrons on the run, and as I think I wrote in a very early NFTRH during the 2008 crisis, gold and USD may rise together (or gold would decline much less than items positively correlated to the global economy) against a world of deflating assets. It is the only safe monetary asset. Anyway, here is gold from two views, linear scale and log scale.  The linear chart shows gold on the verge of going MACD & TRIX up with higher to go if this particular crisis gains momentum. It has broken up above the blue dotted channel once again. A problem would be in a question… how many of the knee jerks that bought in response to last summer's Euro event are ready to step up again? They got absolutely killed for their greed and fear. Gold usually does not reward greed and fear.  The log chart shows gold ho-humming up a channel with the green line a possible resistance point. Gold has navigated through 3 major crises during the span of this chart. You telling me deflation is going to kill it now? Copper has serious resistance from its large topping pattern, the broad market risk profile is rising, the USD is bottoming and most importantly the gold-silver ratio is simply consolidating above support. I cannot tell you if gold is going to get dinged here or continue to bust upward. But I can tell you it is healthy and it has benefited to this point from the various US and European events that show various myopic, manipulative and/or downright evil entities coming unglued.
|
| Posted: 10 Nov 2011 04:13 AM PST
I warned Mercenary Trader weeks ago – the real threats facing the euro are politically driven – that any and all deals were subject to staggering political risk. In the past 2 weeks, we've discovered just how true – and how costly – this political risk will be for the world. To say we live in dangerous times is the understatement of the century. The real euro show begins now. And I am completely terrified. Greek CDS "Sting" puts Italy in play, puts Banking System under Pressure The trigger for the end of the euro has been known for a long, long time: Italy. If you've followed the euro crisis at all, you know the eurozone would have problems containing Spain, but couldn't even consider containing Italy if it started to go. But there were many stops to make before we get to Italy. The Sovereign debt contiagon would have to go through all the PIIGS, then Spain, and then finally get to Italy. At the rate Europe works, this would take years to happen. Those years of time would allow for some of the worst parts of the crisis to heal, and it was possible we'd even see a real economic recovery in that time. Dragging out the process would possibly cure the problem. Italy's weaknesses couldn't be tested until the other problem countries like Portugal, Ireland and Spain were under severe pressure. Since this would take a long time, the euro was "safe". But then Europe did something nobody expected. They screwed the Credit Default Swap market, thinking they were doing a good thing. Interview With a Trading Legend 30-Year audited track record with 41.6% compounded annual returns. How did he do it?? Get your FREE download of the interview here. It turns out this was the worst possible action. This action has:
It's horrible and terrifying what the Europeans have done. We're extremely close to a worldwide banking meltdown. We don't know who is holding European sovereign CDS, or how it is used by these holders. We do know these CDS might be worthless as hedges against default. So every bank and hedge fund with profits on European sovereign CDS should be in a panic. We used to know the size of the European banking system losses, and roughly who was holding these losses. Not anymore. This move to avoid a CDS payout opens up massive losses that could be anywhere in the investment banking world. This risk has driven the liquidity out of the European debt markets. And since there is no way to hedge sovereign debt risk, few people want to buy this debt. So you can imagine what's happening at some of the hedge funds and investment bank trading brokerage desks who were long Italian Debt, but had CDS "protection":
It's a vicious cycle that gets worse the longer you wait to sell your Italian bonds. Worse, we don't know exactly who needs to sell Italian bonds.  But a few hedge funds taking losses don't have me worried. No, the worries are far larger. What worries me is the shadow banking system is now staring at the same scenario it was looking at when Lehman imploded and our economy tanked. The repo market is built on collateral with relatively stable values. Europe's decision to circumvent the CDS payout creates a situation where the value of Italian and even French and German Sovereign debt is highly uncertain while exposing every player in the repo market to massive counterparty risk. It's horrible. MF Global is probably just the first in a line of repo market victims. Deutsche Bank holds 7 billion euros of Italian CDS that was used to hedge their Italian CDS positions. Via Bloomberg:
I think an "Oh My God" is appropriate here. It's estimated that U.S. banks hold 22 billion of CDS on Italy. The total Sovereign CDS market has about $250 billion of net exposure, and $3 trillion in gross exposure. European sovereign CDS make up a majority of the sovereign CDS issued. And they are all worthless now. Losses could be in the $300bn range. We don't know exactly who is holding this exposure.There were rumors earlier this week Goldman Sachs was under pressure. This must be why. You can see why I am terrified:
What we do know is the system is probing for weaknesses. MF Global didn't happen by accident. But what does this mean for the euro? I've been of the strong belief the euro is either worth 1.70 or 1.0000 and the current market is just shows the probability of either of these two values happening. Germany and France talking about a core euro isn't very reassuring. But would they leave the euro- or kick everyone else out? We don't know the answer to the question "What will Europe do now?" Nobody knows the answer. I've been surprised at the strength of the euro over the last few weeks. With this much unknown about the actions of Europe and the new black hole in the investment banking system, I see a flight to quality trade. My strong belief is this strength will fade as the epic ramifications of Europe's actions in the CDS markets become apparent. We could very easily see a reprise of the events of late 2008, with sovereign CDS non-payouts helping to shut down the repo market. I am looking for a flight to quality, and the euro will be sold during this time. It's risk off all over again. Mercenary Trader is already short the euro as documented in the Mercenary Live Feed, and I wholeheartedly agree with this positioning. The reward could be huge in the euro.
|
| LISTEN: Ross Norman talks to Dominic Frisby Posted: 10 Nov 2011 04:06 AM PST Ross Norman, of Sharps Pixley, and Dominic Frisby, of the GoldMoney Foundation, talk about the price of gold. Renowned gold trader and top gold price forecaster Ross Norman discusses the future outlook for the price of gold. Ross Norman is a multiple winner of the LBMA's gold price forecasting competition. They talk about physical vs. ETFs and how physical is a good hedge against bank insolvency and counterparty risk. They discuss manipulation and central bank interventions. Ross also talks about the long-term outlook: he expects the price of gold to double in a few years. They also discuss short-term volatility and comparisons with 2008. They also talk about silver. Ross explains that gold is a safe haven, a lifeboat, however a small one compared to the size of the paper market. He mentions that even in London there are only 30 or 40 people that are really players in the gold market. However Internet innovation is opening up the market. ~TVR |
| ‘Tis the Season for Gold? Posted: 10 Nov 2011 03:32 AM PST Even though the price of gold has been slowly nudging higher, Jeff Clark makes a good case that it's still a good time to buy both the metal and select gold stocks. |
| Vince Lanci's Gold Update 11.10.11 Posted: 10 Nov 2011 02:47 AM PST Kitco's Daniella Cambone talks gold with Vince Lanci. ~TVR |
| Posted: 10 Nov 2011 02:11 AM PST |
| Silver Institute Releases Silver Investment Market Report Posted: 10 Nov 2011 02:01 AM PST The Silver Institute released a report today titled "The Silver Investment Market -- An Update," which forecasts world silver investment will reach a record high total of $10 billion in 2011, representing a 66 percent increase over the $6 billion posted in 2010. |
| Posted: 10 Nov 2011 01:20 AM PST |
| Posted: 10 Nov 2011 01:00 AM PST |
| This could the most dangerous woman in America Posted: 10 Nov 2011 12:22 AM PST From Sovereign Man: Christina Romer is the most dangerous woman in America right now. As an economics professor at the University of Berkeley, she's charged with educating the next generation of productive citizens. She also formerly chaired the Council of Economic Advisors under President Obama. One would think that a person with that level of influence would have a bit of sense. One would think. Yet Romer rarely fails to disappoint. In a recent New York Times editorial entitled, "Dear Ben: It's Time for Your Volcker Moment," Romer publicly tries to goad Ben Bernanke into doing MORE to fight the great contraction. It's not enough that Mr. Bernanke has expanded the money supply by an amount never before seen in the history of the world. It's not enough that he's nearly exhausted every policy tool at his disposal. It's not enough that global confidence in the dollar is fading rapidly. Romer wants Bernanke to take things to the next level... Read full article... More government stupidity: Richard Maybury: The next war could kill the U.S. dollar An "End of America" warning you cannot afford to miss This could be the all-time craziest thing Barack Obama's administration has ever done |
| Europe is Uninvestable & Gold is the Antidote Posted: 10 Nov 2011 12:09 AM PST from King World News:
John Roque continues: Read More @ KingWorldNews.com |
| Italy Crisis Goes From Bad to Worse Posted: 10 Nov 2011 12:04 AM PST from GoldMoney.com:
This morning, the yield on Italian two-year government bonds exceeded the yield on the equivalent 10-year bond for the first time since August 1994. Such an inverted yield curve is usually seen as a predictor of a recession, and was a pattern seen in the Irish, Greek and Portuguese bonds prior to these countries seeking bailouts. One-year Italian bills – which Rome will auction later today – are also yielding more than 7%. |
| Financial Times Deutschland Joins Hunt for Germany’s Gold Posted: 10 Nov 2011 12:00 AM PST by Chris Powell, GATA: Dear Friend of GATA and Gold: The long clamor about the German gold reserves by GATA and particularly by our friends, the German journalist Lars Schall and the German market analyst Dimitri Speck, this week caught the attention of the German edition of the Financial Times, which published a story headlined "Speculation and Rumors: The Hunt for the Treasure of the Bundesbank." The Financial Times Deutschland confirms, as GATA has reported, that most of the German gold is stored outside the country, partly for international security reasons but more so now for ease of trading and general subservience to the United States. The FTD story is notable mainly for extracting from the German central bank, the Bundesbank, a statement that no German gold is being leased at the moment. |
| Italy Sparks Market Bloodbath: Financial Stocks Collapse Posted: 09 Nov 2011 11:58 PM PST from ZeroHedge:
|
| James Turk: “Expect Cataclysmic Events in the Coming Weeks” Posted: 09 Nov 2011 11:55 PM PST from King World News:
James Turk continues: Read More @ KingWorldNews.com |
| Keiser Report: Gold & Currency Wars with Jim Rickards Posted: 09 Nov 2011 11:53 PM PST This week Max Keiser and co-host, Stacy Herbert, discuss European gold wars and the brokers at the Chicago Board of Trade telling others to get a job while they can't even do the one job they have. In the second half of the show, Max Keiser interviews James G. Rickards about his new book – Currency Wars: The Making of the Next Global Crisis. ~TVR |
| Mark Ames: Why Finance is Too Important to Leave to Larry Summers Posted: 09 Nov 2011 09:19 PM PST By Mark Ames, author of Going Postal: Rage, Murder and Rebellion from Reagan's Workplaces to Clinton's Columbine who writes regularly at The Exiled. If you've been reading Naked Capitalism for any period of time without giving back in donations—and most of us have been hooked from the time we discovered Yves Smith's powerful, sharp voice and brilliant mind—then you you've been getting away with murder. Naked Capitalism is that rare blog that makes you smarter. Smarter about a lot of things, but primarily about Yves' area of expertise, finance. By a quirk of historical bad luck, the American Left has gone two generations without understanding finance, or even caring to understand. It was the hippies who decided half a century ago that finance was beneath them, so they happily ceded the entire field—finance, business, economics, money—otherwise known as "political power"—to the other side. Walking away from the finance struggle was like that hitchhiker handing the gun back to the Manson Family. There's a great line from Charles Portis's anti-hippie novel, "Dog of the South" that captures the Boomers' self-righteous disdain for "figures":
That part about the hands—that would refer to the hippies' other great failure, turning their backs on Labor, because Labor didn't groove with the Hippies' Culture War. So the Left finds itself, fifty years later, dealing with the consequences of all those years of ruinous neglect of finance and labor—the consequences being powerlessness and political impotence. That's why Yves Smith is so important to anyone who cares about politics and the bad direction this country is taking. In 2008, the Left suddenly discovered that although it could bray with the best of 'em about how bad foreign wars are, and how wrong racism and sexism an homophobia are, it was caught completely and shamefully by surprise by the financial collapse of 2008. The ignorance was paralyzing, politically and intellectually. Even the lexicon was alien. Unless of course you were one of the early followers of Yves Smith's blog. It wasn't always this way. Back in the 1930s, the Left was firmly grounded in economics, money and finance; back then, the Left and Labor were practically one. With a foundation in finance and economics, the Left understood labor and political power and ideology and organization much better than the Left today, which at best can parry back the idiotic malice-flak that the Right specializes in spraying us with. We're only just learning how politically stunted and ignorant we are, how much time and knowledge we've lost, and how much catching up we have to do. Which is why Yves Smith's Naked Capitalism is one of the 99%'s most valuable asset in the long struggle ahead: She is both analyst and educator, with a rare literary talent (especially for finance). One thing that's protected the financial oligarchy is the turgid horrible prose that they camouflage their toxic ideas and concepts in. Yves is one of the rare few who can make reading finance as emotionally charged as it needs to be. Naked Capitalism is our online university in finance and politics and ideology. Whereas other online universities are set up to turn millions of gullible youths into debt-shackled Wall Street feeding cows, Naked Capitalism is the opposite: Completely free, consistently brilliant, vital, and necessary, making us smarter, teaching us how we might one day overthrow the financial oligarchy. One other difference between Naked Capitalism and online university swindles: (Stanley Kaplan cough-cough!) Your donations wont end up paying Ezra Klein's salary. Which brings me back to my whole "Shame on you!" point I was trying to make earlier. When it comes to fundraising, nothing works like shaming. That's how those late-night commercials work: You're sitting there in your nice comfortable home, and then suddenly there's this three-legged dog hobbling into its cage, with big wet eyes, and then some bearded pedophile comes on and says, "Poor Rusty has endured more abuse and pain than you can ever imagine, and tomorrow, he will be gassed to death in a slow, horrible poison death chamber. And you—look at you, sitting there with your Chunky Monkey and your central heating, what kind of sick bastard are you? Get your goddamn Visa Mastercard out and send money to Rusty, or else his death is on your head. I hope you sleep well at night." Now I know that this sort of appeal wouldn't work on the Naked Capitalism crowd—too many economists here, and as everyone knows, you can't appeal to economists' hearts because, well, see under "Larry Summers World Bank Memo"… I can imagine Larry watching that late night commercial with the three-legged dog, powering a 2-liter bottle of Diet Coke and devouring a bag of Kettle Salt & Vinegar potato chips, calculating the productive worth of the three-legged dog, unmoved by the sentimental appeal. Larry grabs a dictaphone: "Item: How to end dog-gassings? Solution: Ship all three-legged stray dogs to sub-Saharan Africa. Africans won't even notice. Dogs saved. Private capital freed up. Problem solved." So some of you have no hearts, and some of us have no shame. But we all do understand how vital Naked Capitalism has been in educating us. I'm sure that the other side knows how dangerous a site like this is, because as we become more educated and more political, we become more and more of a threat. The oligarchy has spent decades on a project to "defund the Left," and they've succeeded in ways we're only just now grasping. "Defunding the Left" doesn't mean denying funds to the rotten Democratic Party; it means defunding everything that threatens the 1%'s hold on wealth and power. One of their greatest successes, whether by design or not, has been the gutting of journalism, shrinking it down to a manageable size where its integrity can be drowned in a bathtub. It's nearly impossible to make a living as a journalist these days; and with the economics of the journalism business still in free-fall like the Soviet refrigerator industry in the 1990s, media outlets are even less inclined to challenge power, journalists are less inclined to rock the boat than ever, and everyone is more inclined to corruption (see: Washington Post, Atlantic Monthly). A ProPublica study in May put it in numbers: In 1980, the ratio of PR flaks to journalists was roughly 1:3. In 2008, there were 3 PR flaks for every 1 journalist. And that was before the 2008 shit hit the journalism fan. This is what an oligarchy looks like. I saw the exact same dynamic in Russia under Yeltsin: When he took power in 1991, Russia had the most fearless and most ideologically diverse journalism culture of any I've ever seen, a lo-fi, hi-octane version of American journalism in the 1970s. But as soon as Yeltsin created a class of oligarchs to ensure his election victory in 1996, the oligarchs snapped up all the free media outlets, and forced out anyone who challenged power, one by one. By the time Putin came to power, all the great Russian journalists that I and Taibbi knew had abandoned the profession for PR or political whoring. It was the oligarchy that killed Russian journalism; Putin merely mopped up a few remaining pockets of resistance. The only way to prevent that from happening to is to support the best of what we have left. Working for free sucks. It can't hold, and it won't. So donate now to Naked Capitalism. If you can't afford much, give what you can. If you can afford more, give more. If you can give a lot, give a lot. It will pay for itself, I guarantee you. This isn't just giving, it's a statement that you are want a different debate, a different society, and a different culture. Who knows, maybe we'll win; maybe we'll even figure out a way to seal Larry Summers in a kind of space barge, and fire him off into deep space, to orbit Uranus for eternity. Yves? Could it be financed?
|
| Secret Gold Price Suppression Won't Last Much Longer: Jim Rickards Posted: 09 Nov 2011 09:07 PM PST ¤ Yesterday in Gold and SilverWith the dollar on the rampage to the upside, both gold and silver were under pressure for most of Far East and early London trading. But it wasn't much pressure...and by 11:30 a.m. in London, gold began to rally...and was well back into positive territory by the time that Comex trading began in New York at 8:20 a.m. Eastern time. The New York high was not allowed to penetrated the $1,800 the ounce price mark once again...and at 9:00 a.m. the New York bullion banks turned the price lower. There was an interim low at 10:00 a.m. Eastern at the London p.m. gold fix, before the gold price rallied a bit...and was still a few dollars in the green when Comex trading ended at 1:30 p.m. Eastern time. But once the thinly-traded New York Access Market [where only the U.S. bullion banks can play] got started, it was lights out...as 'day boyz' pealed about $25 off the price in very short order...and the subsequent smallish recovery also got sold off into the close of electronic trading at 5:15 p.m. in New York. Gold closed at $1,768.60 spot...down $16.50 on the day. Net volume wasn't overly heavy at 131,000 contracts.
The silver price was 'volatile' once again. Although silver made every attempt to rally in Far East trading, that rally gave up the ghost at 1:00 p.m. Hong Kong time...just as the dollar rally got under way. From there, its price path was very similar to gold's...and every rally got sold hard...and the silver price never made it back over $35 the ounce. The New York low in Comex trading was at the same time as gold...the London p.m. gold fix. The subsequent rally got capped...and then silver really got shellacked once trading began in the thinly-traded electronic market. Silver closed at $34.04 spot...down 86 cents on the day. Net volume was around 33,000 contracts.
Platinum and palladium weren't spared either...as the bullion banks made sure that there was no safe place except the U.S. dollar yesterday. Here's the dollar chart from yesterday. Note the low tick at precisely 1:00 a.m. Eastern time. The dollar finished the day up about 130 basis points...but over 90 percent of the move was in by 10:00 a.m. Eastern. What the means is that despite the huge dollar rally yesterday, both gold and silver were in rally mode if they hadn't run into bullion bank interference. Virtually all of yesterday's decline in gold and silver prices came long after the dollar rally had grown long in the tooth. The precious metals were obviously given a shove...and in the thinly-traded electronic market, once the sell stops were hit, the inevitable waterfall price decline ensued. You've seen it all before, dear reader. It's all so illegal, but as you've already figured out, there's no one out there that is prepared to lift a finger to help us...as the CME and CFTC are obviously complicit in this.
Despite the fact that the general equity markets were getting smoked...the precious metal shares were basically unchanged on the day when the Comex closed at 1:30 p.m...as the gold price was in the plus column. But once the precious metal prices were given a shove, the stocks quickly followed...as it was obvious that, as I said further up, the 'powers that be' didn't want any hint of a safe haven other than the U.S. dollar.
The silver stocks really got hammered...and Nick Laird's Silver Sentiment Index got hit hard as well...down 6.38% on the day.
(Click on image to enlarge) As GATA's Chris Powell's famous quote goes..."There are no market anymore, only interventions." Ain't that the truth! The CME Daily Delivery Report wasn't very exciting, as only 3 gold and 9 silver contracts were posted for delivery on Friday. The GLD ETF showed another increase. This time it was 97,285 ounces...the fourth day in a row that GLD took in metal. There were no reported changes in SLV. The U.S. Mint had a small sales report. They sold 1,500 ounces of gold eagles...and 50,000 silver eagles. A smallish 32,000 ounces of silver were reported withdrawn from the Comex-approved depositories on Tuesday...and no receipts were reported. Here's a chart titled "Global Sharemarket Sentiment Index" that Nick Laird over at sharelynx.com sent me last night. I've run it before, but here's another chilling update. This is a very large chart...and the 'click to enlarge' feature will come in handy here. Nick says that if we are to follow the 2008 model, then we are almost at the tipping point...and he asked in the covering e-mail..."Are we there yet?"
(Click on image to enlarge) Here's another graph that was sent to me yesterday. This one from Washington state reader S.A. Since any IMF vote has to pass with an 85% majority, the United States has total veto power over anything that the rest of the world wants to do. Aren't empires great?
(Click on image to enlarge) Here's Washington state reader S.A. second graph for today...and it's a beauty. France is done like dinner when Italy gets flushed. Italy is too big to bail...and too big to fail.
(Click on image to enlarge) Silver analyst Ted Butler posted a Q & A session that he had with Jim Cook over at investmentrarities.com yesterday...and I've cut and paste a few lines for you... Cook: Does the paper trading on COMEX still control the price? Butler: For sure, but that control will be less in the future.
Cook: What will change that? Butler: The rush towards physical. COMEX is designed as a paper derivatives exchange and is not structured for a rush on physical silver.
Cook: What is JPMorgan, the big short, doing now? Butler: Overall it is reducing its silver short position, but recently has been increasing it. Ask me after the next COT report.
Cook: What price would silver be at without them in the picture? Butler: Double, at least, but it depends upon what other factors it might set off.
Cook: Will the new position limits on silver begin to impact the price? Butler: Yes, and I'm sure it already has, both up and down as big players react and influence the market. The main thing is that it will be good in the long term as it promises to end the silver manipulation.
Cook: What do you say to people who bought silver at $45.00 an ounce? Butler: I guess the same thing that was told to those who happened to buy at previous tops of $8, $12 and $20. Silver wasn't above $45 for a long period of time, so there can't be great numbers who hold silver at that average price. Probably the best thing to do is to take advantage of the lower price and average down.
Cook: Silver always seems to follow gold. A while back you wrote that gold and silver would get a divorce and silver would fly on its own. Why hasn't that happened? Butler: Because they've had a 5,000 year marriage and the longer you are married, it's harder to get divorced. But given silver's industrial consumption profile, they are incompatible and the marriage is doomed. And if you missed Ted's audio interview with Dr. Dave Janda over at WAAM 1600 from two Sunday's ago, the link to that is here. Despite brutal hacking and slashing, the list of stories I have on offer today is still way too big for my liking so, as usual, the final edit is up to you. It wouldn't surprise me in the slightest if China banned the export of silver as well...and that would definitely put the Chinese fox amongst the JPMorgan pigeons. Buying up the world's gold - China's long-term motive. Financial Times Deutschland joins hunt for Germany's gold. Will the eurozone crisis send the gold price soaring? ¤ Critical ReadsSubscribeAmericans in Canada driven to divorce from their countryThe U.S. citizenship ceremony is an iconic rite of passage for immigrants. Would-be Americans gather to pledge allegiance to the Stars and Stripes. There are cheers and often tears, patriotic speeches, sometimes music, and plenty of flag waving. Now, a small but growing band of Americans in Canada is doing it in reverse – gathering en masse to begin the process of becoming un-American. It was a sombre affaire at the U.S. consulate in Toronto last month as 22 Americans waited in the rain before being ushered in to what is believed to be the first citizenship renunciation meeting ever held in Canada. Unlike most countries, the United States requires its citizens to file annual tax returns with its Internal Revenue Service regardless of where they live and work. Many of the roughly one million Canadian-American citizens long ago stopped filing, assuming they owed no tax. Many are worried now they'll be hit with punishing penalties as a result of recent U.S. efforts to prevent its citizens from hiding assets in offshore tax havens. This is a must read for any expat American...or about-to-be expat American. I thank reader Richard Murphy for sending me this story out of Tuesday's edition of The Globe and Mail...and the link is here.  Fannie Mae taps $7.8 billion from Treasury, loss widensFannie Mae, the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat as a shaky housing market widened its third-quarter loss to $5.1 billion. The government-controlled firm also attributed the deeper cash drain to losses on derivatives used to hedge its exposure to interest-rate swings and on expenses related to home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion. Fannie Mae has now drawn $112.6 billion in bailout funds from the Treasury Department since being seized by the government in 2008 as mortgage losses mounted, and it has returned $17.2 billion to taxpayers in the form of dividends. Wow! You can't make this stuff up. I thank reader Scott Pluschau for sending me this Reuters story from yesterday...and the link is here.  Jefferson County Alabama Files for BankruptcyJefferson County, Alabama filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. The county, home to Birmingham, the state's most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed today in U.S. Bankruptcy Court in Birmingham. The county's bankruptcy attorney, Kenneth Klee, said the filing was necessary because talks with creditors and the receiver in charge of the sewer system built by the bonds broke down. "There was an impasse reached," Klee said in an interview today. "None of the creditors -- zero -- signed up to the deal that we have been negotiating for six weeks." This Bloomberg story is Scott Pluschau's second offering in today's column...and the link is here.  MF Global 'Starting to Smell Like' Fraud: Ex-SEC Accounting ChiefMF Global is still missing an estimated $600 million more than a week after it filed for bankruptcy, and at least one high-profile accounting expert said Wednesday he is beginning to sense fraud may be the explanation. "My concern is that at the very end as things got very dire, as liquidity dried up, that you had some people in collusion go in and commit fraud here and I don't know that that did occur, but that's what it's starting to smell like," Lynn Turner, former chief accountant at the Securities and Exchange Commission told Bloomberg Television Wednesday. A spokesman for the Commodity Futures Trading Commission, one of MF Global's regulators, declined to comment, as did an MF Global spokesman. A call to MF Global's bankruptcy trustee was not returned. This story, filed over at thestreet.com website yesterday, is reader Scot Pluschau's third and final offering of the day...and I thank him. The link is here. US Mint buys more gold, silver from Sunshine Posted: 09 Nov 2011 09:07 PM PST  Despite a dip in gold coin sales in October, US Mint bought more gold and silver from Idaho's Sunshine Minting Inc. Sunshine Minting Inc., a closely held company in Coeur d'Alene, received $1.25 billion from the government for precious metals in the fiscal year that ended Sept. 30, up from $591.4 million during the prior year. The company supplies raw silver and silver and gold blanks to the U.S. Mint and 13 other government mints around the world. This very short story posted over at the bullionstreet.com website yesterday, is courtesy of reader 'John in Manchester' in the U.K...and the link is here. |
| Gold and [corporate] bonds are all that's left Posted: 09 Nov 2011 09:07 PM PST  Europe has been kicking the decomposing debt can down the road, but the can has hit the fan. Investors had hoped that Greece's debt problems would be contained to Greece. They'd hoped the face-saving deal that Germany and France brokered in late October -- which cost Greek Prime Minister George Papandreou his job – would put a floor underneath the euro. But hope is not an investment strategy. Italian opera is playing alongside Greek tragedy, and investors aren't hanging around to see which other countries join this debt-ridden production. |
| Will the eurozone crisis send the gold price soaring? Posted: 09 Nov 2011 09:07 PM PST  Is gold about to go through the roof? The price has been creeping up again, after falling by about $200 from its previous record highs of around $1,900. The price of gold bullion climbed above $1,800 an ounce on Tuesday, rallying to its highest level in almost seven weeks. This is not surprising, given its traditional role as a safe haven in turbulent times. And the economy could hardly be more precarious, with the euro apparently on the brink of collapse. |
| Posted: 09 Nov 2011 09:07 PM PST  GoldMoney founder and GATA consultant James Turk today gold King World News yesterday that "cataclysmic" events in the world financial system may be imminent as Italy loses its ability to pay its debts and drags down banks all over the world. This, Turk argues, is a crisis not of capitalism but of socialism, unaffordable entitlements. I thank Chris Powell for wordsmithing the introduction...and the link to the KWN blog is here. |
| Italy's borrowing costs surge above 7 percent Posted: 09 Nov 2011 09:07 PM PST  A 7pc yield is widely deemed as unsustainable and has previously led to bailouts and talk of default in smaller euro zone economies such as Portugal, Ireland and Greece. The euro sank 1pc against both the dollar and yen on the news. Investors yesterday greeted the likely exit of Berlusconi as leader of the eurozone's third-largest economy positively, but then began fretting about who his successor might be and how long political instability would last. "The mere fact that Italian 10-year bond yields have hit the all important 7 percent level shows that the crisis will not end simply with Berlusconi's excruciatingly slow demise," said Joshua Raymond, chief market strategist at City Index. |
| Gold & Silver Market Morning, November 10, 2011 Posted: 09 Nov 2011 09:00 PM PST |
| BrotherJohnF: Silver Update – “Range Expansion” Posted: 09 Nov 2011 08:40 PM PST From BrotherJohnF:
|
| The (In)Significance of Money, Part 2 Posted: 09 Nov 2011 08:34 PM PST The Eurozone's in "existential crisis", and physical Gold Bullion is long gone. So where's our metaphysics of money today...? |
With gold near $1,770, silver around $34 and stock markets around the world plunging yesterday, today King World News interviewed John Roque, Managing Director of WJB Capital Group out of New York. KWN wanted to get John's thoughts on where he sees opportunities on both the long and short side of the markets as well as gold. When asked about stocks, Roque responded, "First of all, Eric, I think it's a little ridiculous that the market believes a change in Italian leadership improves things in that part of the world. Also, I think it's important to note that the S&P failed at its downward sloping 200 day moving average which is in the 1,275 area."
Italian 10-year bond yields shot above the 7% mark yesterday, leading to a rout in stocks and commodities. Though priced in euros, gold performed strongly, safe-haven buying of the US dollar led to a sell-off in gold and silver priced in USD, as well as weakness in broad commodity indexes. The gold spot price dropped as low as $1,754.75 this morning, though has since recovered ground. Silver has once again dropped below the $34 mark, and is suffering from general risk-aversion among traders related to the Italian debt situation.
So much for the US decoupling. Following 5 days of persistent refusals to deal with reality, the real world finally came back with a bang, and while the overall market tumbled the most in two months, it is really financial stocks that took the brunt of today's beating. As the chart below shows, the XLF has literally collapsed with most major banks on the ropes, and the broker dealer index down 6.45% the most since August 10. The reason? Italy of course, and the fear that once the country is forced to write down its debt, the bank failures will proceed in waves: first Italian banks, then French, and then everyone else, especially those that have already been in the market's crosshairs for their exposure. And if today was ugly, tomorrow promises to be an absolute bloodbath with Italy deciding to proceed with the issuance of €5 billion in 1 year Bills into what may well be a bidless market.
With stocks plunging the dollar rallying and the situation in Italy spinning out of control, today King World News interviewed James Turk out of Spain to get his take on what is happening. When asked about Italy and if we should expect more bank failures, Turk replied, "We had a major development here in Europe today, Eric. Yields on the ten year Italian bond soared to over 7%. The 7% hurdle is considered critical because once Greece and Ireland went over 7%, they turned to the EU for a bail out. So the thinking now is that Italy needs a bail out too, but here's the problem. Italy has two trillion euros of debt. That's greater than the total amount of debt owned by Greece, Ireland, Portugal and Spain combined."
| You are subscribed to email updates from Gold World News Flash 2 To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment