Gold World News Flash |
- GoldSeek.com Radio Gold Nugget: Harry S. Dent Jr. & Chris Waltzek
- Ben Bernanke Beats Deflationists Into Submission With His Money Stick
- Junior Gold Equities Worthy of Praise
- Watch T-Bonds, Not the Criminally Insane Dow
- Asian Metals Market Update
- The Gold & Silver Con, Hyperinflation & The Euro Collapse: a SGTreport Exclusive with ‘Ranting' Andy
- Gerald Celente - Back Door Deals, Gold Zoom, Silver Bam!
- Guest Post: How The U.S. Will Become A 3rd World Country (Part 1)
- The Silver Market and Inflation
- Precious Metals, Rare Earths, Uranium Soar As Banks Boost Liquidity
- Answering Your Questions: Will Gold Be Confiscated?
- Gold & Silver Warrants: What are They? Why Own Them? How are They Bought & Sold?
- The Real Reason Gold Will Rally
- World’s Largest Miners like Potash
- If A Major Clearing House Fails The Markets Will Fail
- War on Drugs Revealed as Total Hoax – US Military Admits to Guarding, Assisting Lucrative Opium Trade in Afghanistan
- Preparing For The End…
- The Market's Sugar High
- What Have The Central Banks Of The World Done Now?
- Gold Seeker Closing Report: Gold and Silver Gain Almost 2% and 3%
- WikiLeaks - Israel Kept Gaza On Brink Of Economic Collapse
- Gold And Silver Lift-off: Hyperinflation At The Starting Gate
- Did Central Bank Coordinated Easing Also Include Manipulation of The Gold Market?
- Of Imminent Defaults And Self Deception. Kyle Bass Prepares For The Worst
- The Gold Price Jumped 32.10 Today, Can It Break Through It's $1,800 Resistance?
- Sprott appeals to silver miners: Start treating your metal as money
- Deflation is coming
- Fed Supplies Massive Liquidity to the World / Massive Gold Delivery Notices and Huge Gold Oz. Standing, Large Silver Oz Standing
- Peter Schiff Explains What Today's Global Fed-Funded Bailout Means For The Future
- Peter Schiff Explains What Today's Global Fed-Funded Bailout Means For The Future
| GoldSeek.com Radio Gold Nugget: Harry S. Dent Jr. & Chris Waltzek Posted: 30 Nov 2011 07:02 PM PST GoldSeek.com Radio Gold Nugget: Harry S. Dent Jr. & Chris Waltzek
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| Ben Bernanke Beats Deflationists Into Submission With His Money Stick Posted: 30 Nov 2011 06:15 PM PST We've got a new slogan for deflationists. Deflationists: Wrong Since the Advent of Fiat Currency. It's been the never-ending, battle royale of the economic world ever since the looming end to this financial system became starkly clear in 2008. Will the western governments, almost all completely incapable of paying the gargantuan debts enabled by democracy, central banking and fiat currency, allow the system to collapse (deflation) or worm their way out of it via inflation, until we live in a hyperinflationary apocalypse?
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| Junior Gold Equities Worthy of Praise Posted: 30 Nov 2011 06:09 PM PST As the market sloshes around, gold is searching for its identity. It has played currency hedge and equity adeptly at different times this year. While other investors wade through the confusion, Brian Ostroff, managing director of Montreal-based Windermere Capital, is taking the opportunity to snatch up gold mining equities that have been quietly performing under the radar. In this exclusive interview with The Gold Report, he contemplates why the market isn't rewarding junior gold equities worthy of praise.
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| Watch T-Bonds, Not the Criminally Insane Dow Posted: 30 Nov 2011 06:08 PM PST If DaBoyz can squeeze a 500-point Dow rally out of yesterday's administered easing of dollar "swap" rates, just imagine what they can do with a little Santa seasonality and a dollop of year-end window-dressing. Let's be straight about a couple of things. First, no one expects the latest easing of global credit lines to resolve Europe's debt crisis. And second, the 800 points the Dow has tacked on this week represent little more than trading machines masturbating each other amidst a short-covering panic.
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| Posted: 30 Nov 2011 06:00 PM PST Yesterday in our reports I had said that one needs to be prepared for big moves in silver and copper and I was right as they both have broken the consolidation phase only to move into another big bull wave. The Chinese bank reserve requirement cut by 0.50% was the key.
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| Posted: 30 Nov 2011 05:27 PM PST This in my new silver & gold update interview with 'Ranting' Andy Hoffman, from MilesFranklin.com about the total CON that is MF Global, the CME & the Comex. We talk Hyperinflation and the Euro collapse too. Learn More @ MilesFranklin.com
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| Gerald Celente - Back Door Deals, Gold Zoom, Silver Bam! Posted: 30 Nov 2011 05:20 PM PST  With news of the coordinated central bank action, which was to designed to help stabilize the European banking crisis, today King World News interviewed Gerald Celente, Founder of Trends Research and the man many consider to be the top trends forecaster in the world. Celente had this to say about the coordinated central bank action, "Well you could see it coming. Go back two weeks ago, the headline in the Wall Street Journal, 'Banks face funding stress, European institutions resort to potentially risky swaps to generate liquidity.' That's language for the loan sharks that can't collect on their bets. And they are coming up with new schemes in trying to squeeze money out of the system to keep their Ponzi scheme going."
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| Guest Post: How The U.S. Will Become A 3rd World Country (Part 1) Posted: 30 Nov 2011 05:13 PM PST Submitted by Ron Hera of Hera Research How The U.S. Will Become A 3rd World Country (Part 1) The United States is increasingly similar to a 3rd world county in several ways and is accelerating towards 3rd world status. Economic data indicate a harsh reality that obviates mainstream political debate. The evidence suggests that, without fundamental reforms, the U.S. will become a post industrial neo-3rd-world country by 2032. Fundamental characteristics that define a 3rd world country include high unemployment, lack of economic opportunity, low wages, widespread poverty, extreme concentration of wealth, unsustainable government debt, control of the government by international banks and multinational corporations, weak rule of law and counterproductive government policies. All of these characteristics are evident in the U.S. today. Other factors include poor public health, nutrition and education, as well as lack of infrastructure. Public health and nutrition in the U.S., while below European standards, stand well above those of 3rd world countries. American public education now ranks behind poorer countries, like Estonia, but remains superior to that of 3rd world countries. While crumbling infrastructure can be seen in cities across America, the vast infrastructure of the United States cannot be compared to a 3rd world country. However, all of these factors will rapidly deteriorate in a declining economy. Unemployment and Lack of Economic Opportunity Unemployment, which is a deep, structural problem in the U.S., is a fundamental challenge to economic opportunity. The U.S. labor market is in a long-term downward trend linked to globalization, i.e., offshoring of manufacturing, outsourcing of jobs and deindustrialization. The U.S. workforce has declined by approximately 6.5% since its year 2000 peak to roughly 58.2% of working age adults and the U.S. now suffers chronic unemployment of 9.1%. Although the workforce grew in the 1980s and 1990s, as dual income families became the norm, the size of the workforce is shrinking due to a lack of economic opportunity.
Officially, long-term unemployment is 16.5% and the ranks of the long-term unemployed (those jobless for 27 weeks and over) include 5.9 million, 42.4% of those unemployed. However, prior to the Clinton administration, unemployment measures included workers who are now no longer counted as part of the workforce. Using the more accurate pre-Clinton criteria, unemployment exceeds 22%, only 3% below the worst point (24.9%) of the Great Depression. For countries with populations greater than 2 million, Macedonia leads the world with 33.8% unemployment, followed by Armenia at 28.6%, Algeria at 27.3% and the West Bank and the Gaza Strip both at 25.7%.
Compounding the unemployment problem is the fact that an entire generation of young Americans is being left behind in terms of economic opportunity. Student loans exceed $1 trillion while the labor force participation rate for those aged 16 to 29 who are working or looking for work fell to 48.8% in 2011, the lowest level ever recorded. Lack of economic opportunity among the youth, including millions of unemployed college graduates, is a political wildcard reminiscent of countries like Tunisia. The structural decline of the U.S. labor market will continue as American workers are merged into a global labor pool in which they cannot yet directly compete for jobs with workers in countries like China and India. In China, for example, gross pay, in terms of purchasing power parity, is equivalent to approximately $514 per month, 57% below the U.S. poverty line. According to the Economic Policy Institute, the U.S. trade deficit with China alone caused a loss of 2.8 million U.S. jobs since 2001. Falling Real Wages and Household Incomes Workers earning more dollars are actually poorer in terms of purchasing power when the cost of living rises faster than wages,. In fact, if household income is adjusted for inflation, most American families have grown significantly poorer over the past ten years. In 2010, for example, real median household income fell 2.3%. Although the average wage has risen steadily in nominal terms, dwindling purchasing power is a reality for most Americans. When adjusted for inflation, the wages of most Americans have not kept up with the Consumer Price Index (CPI).
According to famed economist Milton Friedman, "inflation is always and everywhere a monetary phenomenon." In other words, prices rise when the money supply is increased faster than population or sustainable economic activity. Apparent economic growth created through credit expansion, i.e., by increasing the money supply, has a temporary stimulative effect but also causes prices to rise. True Money Supply is an accurate measure of inflation.
Although CPI is sufficient to illustrate declining real wages, CPI does not measure the cost of living in a realistic way. According to economist John Williams of Shadow Government Statistics, CPI systematically understates inflation.
The decline in real household income has set Americans back to 1996 levels, despite many households now having two incomes rather than one. Dual income families accounted for much of the increase in real median household income during the 1980s and 1990s, but, today, two incomes are barely better than one income was three decades ago. The decline in real wages was obfuscated in the 1980s and 1990s by growth in the workforce, e.g., by women entering the workforce. Real median household income rose while real wages declined because more households had two incomes.
As U.S. wages and household income continue to fall in real terms, both poverty and reliance on government assistance programs will continue to rise. Growing Poverty According to the U.S. Census Bureau, the poverty rate in the United States rose to 15.7% in 2011, with 47.8 million Americans living in poverty (1 in 6). The official poverty line, determined by the U.S. Department of Health and Human Services, is $22,314 for a family of four. The number of families living in poverty has risen sharply since 2006 and continues to climb.
The U.S. Department of Agriculture's Supplemental Nutrition Assistance Program (SNAP), commonly known as "food stamps," serves 45.8 million households as of May 2011. The program now feeds 1 in 8 Americans and nearly 1 in 4 children.
Based on the outlook for employment and wages, both poverty and reliance on government assistance programs will continue to grow. However, the negative trends in employment, wages and poverty have not affected all Americans equally. In fact, the household income and wealth ofthe wealthiest Americans has increased sharply, despite the overall deterioration of the U.S. economy. Increasing Concentration of Wealth Alan Greenspan, former Chairman of the Federal Reserve, warned that, "Ultimately, we are interested in the question of relative standards of living and … trends in the distribution of wealth, which, more fundamentally than earnings or income, represents a measure of the ability of households to consume." In other words, concentration of wealth undermines the consumer base of the economy, causing GDP to decline and resulting in unemployment, which reduces living standards. Obviously, the total wealth of society is reduced when wealth is highly concentrated because there is a lower overall level of economic activity. Economic data from several sources, including the Congressional Budget Office (CBO), show that wealth and income in the United States have become increasingly concentrated with the wealthiest 1% of Americans owning 38.2% of stock market assets, e.g., shares of businesses.
For the wealthiest 1% of Americans, household income tripled between 1979 and 2007 and has continued to increase while household wealth in the United States has fallen by $7.7 trillion. The Gini Coefficient illustrates the growing disparity in income distribution.
In terms of the Gini Coefficient, the United States is now at parity with China and will soon overtake Mexico, a still developing country. It should be noted, of course, that the U.S. remains a far wealthier country overall. If the current trend continues, however, the U.S. will resemble a 3rd world country, in terms of the disparity in income distribution, in approximately two decades, i.e., by 2032. Welcome to the 3rd World The United States is quickly becoming a post industrial neo-3rd-world country. Partly as a consequence of worsening unemployment and lack of economic opportunity, falling real wages and household incomes, growing poverty and increasing concentration of wealth, the U.S. government faces a historic fiscal crisis. Dominant corporate influence over the U.S. government, particularly by large banks, weakening rule of law at the federal level and destructive tax policies are compounding the economic problems facing the United States. Barring fundamental reforms or a hyperinflationary collapse of the U.S. dollar (due to the fiscal problems of the U.S. government), the deterioration of the U.S. economy will continue and accelerate. As the U.S. economy continues its decline, public health, nutrition and education, as well as the country's infrastructure, will visibly deteriorate and the 3rd world status of the United States will become apparent.
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| The Silver Market and Inflation Posted: 30 Nov 2011 04:57 PM PST |
| Precious Metals, Rare Earths, Uranium Soar As Banks Boost Liquidity Posted: 30 Nov 2011 04:54 PM PST GST Quoted In Barron's "Jeb Handwerger, editor of Gold Stock Trades, told subscribers much the same. He's also bullish on silver, noting that prices have moved past their 50-day moving average, a key short-term technical indicator of momentum. SLV finished at $32 a share, whiskers above its $31.79 line-in-the-sand. He's eyeing a move up towards $50 a share with expectations that silver will follow a surge in gold. Just as significantly, the large-cap Market Vectors Gold Miners ETF (GDX), which closed up 7% today at $60.41 a share, has also "regained its important 200-day moving average," Handwerger noted." Read the full article at Barron's by clicking here. Subscribe to my premium members only content with new updates and recommendations during this exciting time by clicking here.
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| Answering Your Questions: Will Gold Be Confiscated? Posted: 30 Nov 2011 04:51 PM PST Will Gold Be Confiscated? Answering Your Questions...
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| Gold & Silver Warrants: What are They? Why Own Them? How are They Bought & Sold? Posted: 30 Nov 2011 04:50 PM PST [/CENTER] So says Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) in an article written on behalf of www.PreciousMetalsWarrants.com*(“The Authority on Warrants”). Please note that this paragraph must be included in any article reposting with a link* to the article source to avoid copyright infringement. Who in the world is currently reading this article along with you? Click [COLOR=#0000ff]here[/COLOR] Wilson goes on to say: [/CENTER] [LIST] [*]what warrants actually are, [*]which companies have long-term tradable warrants, [*]when the warrants should be exercised by, [*]where these companies have their various mines and [*]how to go about buying and selling them. [/LIST]It is unfortunate that almost all Americans and most Canadians (investors, brokers, financial advisors/planners and financial writers alike) are either unaware of, or not very familiar with, warrants but this article will change all that. Why Invest in Warrants? As I mentioned a...
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| The Real Reason Gold Will Rally Posted: 30 Nov 2011 04:49 PM PST The Real Reason Gold Will Rally The End of Capitalism Now What's Going On...
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| World’s Largest Miners like Potash Posted: 30 Nov 2011 04:42 PM PST By Richard (Rick) Mills Ahead of the Herd As a general rule, the most successful man in life is the man who has the best information Miners are looking to enter the potash business, or expand existing operations, as they look for increased demand from developing nations such as China, India and Brazil. BHP Billiton - In the spring of 1869 a German Chemist named Charles Rasp immigrated to Australia for his health. Unable to find work in his chosen trade Charles learned to ride a horse and began wrangling sheep. One day, while out riding his horse at Broken Hill, he discovered mineralized rock. He took out a mining lease, punched holes in the ground and eventually found rich veins of silver. The Broken Hill Proprietary Company – BHP - was incorporated in 1885 while mining silver and lead at Broken Hill in western New South Wales. Billiton was a mining company that got its start in September 1860 when the articles of association were approved by a meeting of sh...
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| If A Major Clearing House Fails The Markets Will Fail Posted: 30 Nov 2011 04:36 PM PST Jim Sinclair's Mineset My Dear Extended Family: I have not written much about the recent failure of a major clearing house out of respect for my friends who are caught in that situation. A clearing house of note is the mechanism of the marketplace without which trading simply does not occur. This is a situation where "Too Vital to Fail" trumps "Too Big to Fail." You want to know why the Fed organized the do nothing European leaders in concerted action along with China? The answer is no major clearing house can be allowed to fail because then the market mechanism is broken. The reason that sovereign debt cannot fail is the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing that garbage against failure. If euro debt fails, the Western financial world implodes, so it will not now. "QE to Infinity" and gold at $4500 is coming as sure as death and taxes. Good call, Alf! What a head fake gold gave la...
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| Posted: 30 Nov 2011 04:14 PM PST by Ethan A. Huff, NaturalNews.com:
(NaturalNews) Afghanistan is, by far, the largest grower and exporter of opium in the world today, cultivating a 92 percent market share of the global opium trade. But what may shock many is the fact that the US military has been specifically tasked with guarding Afghan poppy fields, from which opium is derived, in order to protect this multibillion dollar industry that enriches Wall Street, the CIA, MI6, and various other groups that profit big time from this illicit drug trade scheme. Prior to the tragic events of September 11, 2001, Afghanistan was hardly even a world player in growing poppy, which is used to produce both illegal heroin and pharmaceutical-grade morphine. In fact, the Taliban had been actively destroying poppy fields as part of an effort to rid the country of this harmful plant, as was reported by the Pittsburgh Post-Gazette on February 16, 2001, in a piece entitled Nation's opium production virtually wiped out (http://news.google.com/newspapers?n…).
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| Posted: 30 Nov 2011 04:07 PM PST from TFMetalsReport.com:
…of the year. It certainly has been a wild one and we've still got a month to go. What's in store for us? Well, I'm prepared to hazard a guess. On balance, it's been a pretty good year here in TurdLand. I figure I probably only batted about 60-70% on the day-to-day stuff but the long-term forecasts have been pretty solid. First there was this: http://tfmetalsreport.blogspot.com/2011/01/1600-gold-by-june-10-2011.html Followed by this: http://tfmetalsreport.blogspot.com/2011/05/turds-bottom-2.html Then there was this: Read More @ TFMetalsReport.com
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| Posted: 30 Nov 2011 04:06 PM PST November 30, 2011 [LIST] [*]“Risk on!” as six central banks jump off a monetary cliff in unison... Dan Amoss on what it means, plus his “next big call” after the AMR bankruptcy [*]$70 silver? Bold forecasts from James Turk, John Embry... and your last chance at our special precious metals bundle [*]Here we go again: Bipartisan support for draining the Social Security “trust fund” even more [*]What Hank Paulson’s advice to hedgies has in common with the “lock up anyone for anything” legislation in the Senate [*]A refreshing tonic from “the Judge”... our own take on the diverging prices of gold and fine wine... urgent reader inquiries about “Income SAFE IOUs”... and more! [/LIST] Nothing like a little “coordinated action” by the world’s central banks to put the “risk-on” trade back in play. The Federal Reserve joined forces this morning with the European ...
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| What Have The Central Banks Of The World Done Now? Posted: 30 Nov 2011 04:03 PM PST from The Economic Collapse Blog:
The central banks of the world are acting as if it is 2008 all over again. Desperate times call for desperate measures, and right now the central bankers are pulling out all the stops. The Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, the Bank of Japan and the Swiss National Bank have announced a coordinated plan to provide liquidity support to the global financial system. According to the plan, the Federal Reserve is going to substantially reduce the interest rate that it charges the European Central Bank to borrow dollars. In turn, that will enable the ECB to lend dollars to European banks at a much cheaper rate. The hope is that this will alleviate the credit crunch which has gripped the European financial system by the throat. So where is the Federal Reserve going to get all of these dollars that it will be loaning out at very low interest rates? You guessed it – the Fed is just going to create them out of thin air. Our currency is being debased so that Europe can be helped out. Unfortunately, the impact of this move will be mostly "psychological" because it really does nothing to address the fundamental problems that Europe is facing. It is up to Europe to solve those problems, and so far Europe has shown no signs of being able to do that. Read More @ TheEconomicCollapseBlog.com
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| Gold Seeker Closing Report: Gold and Silver Gain Almost 2% and 3% Posted: 30 Nov 2011 04:00 PM PST Gold fell $14.82 to $1701.18 in late Asian trade before it rose to as high as $1750.00 by a little before 10AM EST and then stalled out a bit for the rest of the day, but it still ended with a gain of 1.81%. Silver dropped down to $31.118 in early London trade, but it then rose to as high as $32.941 by early afternoon in New York and ended with a gain of 2.98%.
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| WikiLeaks - Israel Kept Gaza On Brink Of Economic Collapse Posted: 30 Nov 2011 03:26 PM PST  Israel's blockade of the Gaza Strip was meant to push the area's economy "to the brink of collapse," according to a U.S. diplomatic cable released by Wikileaks on Wednesday, signaling that Israel was well aware that the policy was taking a heavy toll on the area's civilian population.Israeli leaders have long maintained that the blockade was necessary to weaken the ruling Hamas militant group. The newly released document, published in Norway's Aftenposten newspaper, indicates that Israel hoped to accomplish that goal by targeting Gaza's 1.5 million people. Read more.... 
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| Gold And Silver Lift-off: Hyperinflation At The Starting Gate Posted: 30 Nov 2011 02:09 PM PST  "The government that robs Peter to pay Paul can always count on the support of Paul." -George Bernard Shaw Ahhhhhhh....the smell of desperation in the morning. Ladies and Gentlemen, the shit has hit the fan. When we Precious Metals market watchers awoke early this morning, we were not surprised to find that Gold had lost $26 in overnight trading. We were, however, shocked by the rapid recovery in the price of Gold that commenced at 6AM est. when Gold suddenly spiked higher by $16 an ounce in only 15 minutes. News supporting this sudden move higher in the price of Gold quickly followed: China Begins Monetary Easing, Lowers Reserve Ratio By 50 bps: Gold, Crude, Futures Spike From ZeroHedge It appears that China has already forgotten its close encounter with inflation as recent as a few months ago leading to assorted riots, and is instead far more concerned with the collapsing housing market. As a result it just announced a 50 bps reserve ratio cut, well in advance of when most commentators thought it would happen, on what is now the start of a monetary policy loosening cycle. The kneejerk reaction is for futures to surge and gold to spike, and crude to pass $100, even as the EURUSD was once again drifting lower overnight. And while this is beyond bullish for commodities, we doubt equities will remain bid unless Europe mysteriously fixes itself overnight too. Which won't happen. More from Reuters: "China's central bank cut the reserve requirement ratio for its banks on Wednesday for the first time in nearly three years to ease credit strains and shore up activity in the world's second-largest economy." Naturally, this ties Bernanke's hand even more as Chinese inflation will now be stoked internally in addition to importing any excess inflation to be generated by the Chairman, likely leading to an even faster spike in global inflation the next time we get US-based quantiative easing. Look for Chinese-based purchases of gold to surge. Recall now, how Gold reacted late last Winter, and early this past Spring when China had acted several times to increase their banks reserve ratio...IT TANKED. China cuts their banks reserve ratio today...and the price of Gold soars. And if we Precious Metals market watchers were shocked by Gold's 6AM est "rapid recovery", we were most certainly awed by a $31 spike higher in the price of Gold between 8AM and 8:30AM est. Fed, central banks slash dollar borrowing costs By William L. Watts and Greg Robb, MarketWatch FRANKFURT (MarketWatch) — The U.S. Federal Reserve slashed the cost of emergency dollar loans to foreign banks as the world's major central banks took coordinated action to prevent Europe's debt crisis from triggering a global liquidity crunch. The moves were announced in statements issued simultaneously by the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, the Bank of Canada and the Swiss National Bank. "The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the banks said. The move lifted equities, while the dollar tanked. The announcement, which appeared to take investors by surprise, comes as European banks saw the cost of obtaining funding in dollars in the interbank market rise to a three-year high as the debt crisis prompted institutions to hoard cash. Read more: ECB fails to offset bond buys amid bank stress. The measures are "aimed at the funding strains faced by European banks in what was becoming a modern-day run on the banks ... The world, in fact, has been playing a game of hot potato with European bank debt as well as European sovereign debt, and the only player with oven mitts to hold the hot potato is the world's central banks," said Tony Crescenzi, strategist at PIMCO, in emailed comments. In Wednesday's action, the central banks agreed to lower the pricing on existing temporary U.S. dollar liquidity swap arrangements by 50 basis points, putting the new rate as the U.S. dollar overnight index swap rate plus 50 basis points. The pricing will apply to all operations beginning Dec. 5. Access to the swap lines, which had been scheduled to expire in August, was extended until Feb. 1, 2013. In other words...THE SHIT HAS HIT THE FAN. Here Comes The Global, US-Funded Liquidity Bail Out From ZeroHedge As expected, the Fed has just bailed out the world once again: FED, ECB, BOJ, BOE, SNB, BANK OF CANADA LOWER SWAP RATES - BBG ECB, FED other major central bank to lower the pricing of existing USD liquidity swaps by 50BPS And as we have been writing every single day, the worldwide dollar crunch is now confirmed: At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar, This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out. Why ask why when the real question is "WHY NOW?" Could the following three stories answer that question? With Bank Of America On The Verge Of Breaching $5.00, Our Question Of The Day Is... From ZeroHedge ... how many of the top 50 holders presented below, will be forced to sell once we get a 4 handle? Bank of America, AMERICA'S LARGEST BANK, at just pennies above $5.00 a share, sits on the edge of an abyss. Below this level, Bank of America stock is "non-marginable," meaning any stock owned on margin would need to be liquidated. For a floundering bank owned by many of the nation's highly leveraged hedge funds, such an event could lead to an implosion of the company's stock. Mutual funds with charters prohibiting ownership of stocks below $5.00/share would be forced to dump the stock en masse. After the market close Tuesday, Bank of America and 14 other banks were downgraded by Standard And Poor's, including JP Morgan, Morgan Stanley, Citigroup, and Goldman Sachs: Standard And Poors Reviews 37 Global Banks, Downgrades Bulk - Full List Attached Did A Large European Bank Almost Fail Last Night? From ZeroHedge Need a reason to explain the massive central bank intervention from China, to Japan, Switzerland, the ECB, England and all the way to the US? Forbes may have one explanation: "It appears that a big European bank got close to failure last night. European banks, especially French banks, rely heavily on funding in the wholesale money markets. It appears that a major bank was having difficulty funding its immediate liquidity needs. The cavalry was called in and has come to the successful rescue." Granted the post is rather weak on factual backing and is mostly speculative, but it would certainly make sense. That said, it harkens back to our original question: just how bad was the situation if the global central banking cabal had to intervene all over again, and just what was not being told to the general public? Lastly, and most important, slapping liquidity bandaids on solvency gangrenes does nothing but buy a few days at most. Furthermore, we now expect the stigmata associated with borrowing from the Fed to haunt each and every European bank as vigilantes will now use the weekly ECB update on borrowings from the Fed as a signal to hone in on this and that weak Italian and French, pardon, European bank. Global Central Banks Ring Gold Buyers' Bell From the Desk Of Peter Schiff Today's unprecedented announcement by the world's most powerful central banks was a loud and clear bell ringing to buy precious metals. The move, disguised as an attempt to help the fragile state of the global economy, is in reality a move to prop up failing banks in Europe and the US. By reducing interest rates paid for dollar swaps, central bankers are in effect increasing the quantity of global dollars in circulation. The result? The dollar will weaken, inflation will rise, and gold will soar. Gold was up more than $30 today, and the dollar got crushed. I urge you to take 7 minutes to watch the video I recorded exclusively for my subscribers a few hours ago. It explains, in plain language, what happened today – and what is the likely outcome for your portfolio. This may be one of the most important economic events of the year. Ron Paul Statement On The Fed's Bailout Of Europe From Ron Paul, via ZeroHedge The Fed's latest actions in cooperating with foreign central banks to undertake liquidity swaps of dollars for foreign currencies is another reason why Congress needs enhanced power to oversee and audit the Fed. Under current law Congress cannot examine these types of agreements. Those who would argue that auditing the Fed or these agreements with central banks harms the Fed's independence should reevaluate the Fed's supposed independence when the Fed bails out Europe so soon after President Obama promised US assistance in resolving the Euro crisis. Rather than calming markets, these arrangements should indicate just how frightened governments around the world are about the European financial crisis. Central banks are grasping at straws, hoping that flooding the world with money created out of thin air will somehow resolve a crisis caused by uncontrolled government spending and irresponsible debt issuance. Congress should not permit this type of open-ended commitment on the part of the Fed, a commitment which could easily run into the trillions of dollars. These dollar swaps are purely inflationary and will harm American consumers as much as any form of quantitative easing. The Fed is behaving much as it did during the 2008 financial crisis, only this time instead of bailing out politically well-connected too-big-to-fail firms it is bailing out profligate government spending. Citizens the world over deserve better than this. They deserve sound money that cannot be manipulated and created out of thin air by central planners who promise printed prosperity. Fiat money caused this European crisis and the financial crisis before it. More fiat money is not the cure. The global fiat currency system has proven itself a failure, we need real monetary reform. We need sound money. ...and from National Inflation Association... The Federal Reserve along with the European Central Bank, Bank of Canada, Bank of Japan, Bank of England, and the Swiss National Bank are all lowering their U.S. dollar swap rates by 50 basis points! This is going to create massive worldwide monetary inflation and flood the world with U.S. dollars! The Fed claims that these coordinated actions will enhance their capacity to provide liquidity support to the global financial system in order to "ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity." It was also announced this morning that arrangements have been made to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant. Although the Fed said, "there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar" at this time, the stage is now set to create massive worldwide monetary inflation in other fiat currencies as well. The whole entire global fiat currency system could soon come to an end. The only solution to the upcoming hyperinflationary crisis will be a global digital gold backed currency. NIA believes China will soon announce that they have dramatically increased their gold holdings to backup their rapidly growing foreign currency reserves, which have now reached $3.2 trillion. China's central bank just announced this morning that they are lowering their reserve requirement ratio by 50 basis points to 21% from 21.5%! Foreign Currency Liquidity Swaps (aka Global Bail Out Plan B) FAQs From ZeroHedge Those wondering about the global Fed bailout (this is not the first time, recall How The Federal Reserve Bailed Out The World) can read the FAQ from none other than the source of the global liquidity tsunami itself. Frequently Asked Questions: Foreign Currency Liquidity Swaps What is the purpose of the foreign currency liquidity swap lines? The foreign currency liquidity swap lines are designed to provide the Federal Reserve with the capacity to offer liquidity in foreign currencies to U.S. financial institutions should the Federal Reserve judge that such actions are appropriate. Which central banks are participating in these arrangements? The Federal Open Market Committee has authorized arrangements between the Federal Reserve and the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank. In addition, these foreign central banks are also establishing bilateral swap arrangements with one another. Why are these swap lines being implemented? These swap lines are being implemented as a contingency measure, so that central banks can offer liquidity in foreign currencies if market conditions warrant such actions. These lines provide the Federal Reserve with the same ability to provide foreign currency, should the need arise, as foreign central banks currently have through the existing dollar swap lines with the Federal Reserve to provide dollar liquidity in their jurisdictions. Why is the Federal Reserve establishing lines for these five currencies and with these five central banks? These five currencies are used globally and account for the bulk of the foreign currency funding of U.S. financial institutions. In what manner would foreign currency liquidity be provided? There has not been a decision to activate the foreign currency liquidity facilities. If the Federal Reserve were to decide to offer liquidity in foreign currencies to U.S. financial institutions, the details of the operations would be determined at that time in light of the prevailing circumstances. Will activity under the liquidity swap arrangements be disclosed to the public? Yes, the aggregate swap activity in each currency with foreign central banks will be published weekly. They will be found on the Federal Reserve Bank of New York's Foreign Exchange Swap Agreement webpage Leaving the Board. In addition, any liquidity-supplying operations in foreign currencies would be subject to the same disclosure requirements as the Federal Reserve's dollar-based activities. For how long are the swap arrangements expected to be in place?These swap arrangements, along with the existing U.S. dollar swap arrangements, have been authorized through February 1, 2013. "Nothing has changed. The "world" is not 2% better off than it was yesterday simply because the Federal Reserve has made its own worthless paper "cheaper" for other banks." -Jeff Nielsen, The Latest, 24-Hour, Bankster Band-aid Ben Bernanke Beats Deflationists Into Submission With His Money Stick By Jeff Berwick, The Dollar Vigilante Inflation is defined as an increase in the money supply. Deflation is a decrease in the money supply. Prices are a SYMPTOM of increases or decreases in the money supply. This is very, very basic stuff. Unfortunately, in world-improving, highly socialist "institutions" such as Harvard, Yale and Princeton the last few sentences may as well have been written in Nepalese. They speak a language called Keynesian and have a religious belief that drawing pictures on pieces of paper can make everyone rich. They probably also stomp up and down on a bag of chips to make more chips, too.For months the Germans and Europe had everyone on edge. Would a western nation actually default, have its entire banking system collapse, impoverish almost all middle class savers and reduce the size of their monstrous socialist welfare governments by a massive amount, throwing millions into the streets unemployed and penniless? The answer, once again, was no. It was no surprise to us here, as we have always stated that was the much more likely route chosen. Every other time in history when a democratic overindebted government with a fiat currency was faced with collapse or hyperinflation they always fire up the choppers. The reason is simple. It's the easiest way out for the politicians. Obama would much prefer the dollar goes into hyperinflation - something he can blame on greedy corporations, or China, and whip the rich-haters into a frenzy - than to walk up to the Presidential podium and go down in history as the President "in charge" when the US empire collapsed. They've been doing this for millennia. They weren't fiddling as Rome burned because the government took responsibility and undertook a self-imposed discipline. Rome was alight because the government overspent massively on military excursions, bread and circuses and used coin-clipping and other means to devalue the currency. That all might sound familiar to Americans today except coin-clipping has been replaced by computerized fiat note creation. And so, today along with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, the Fed announced it is cutting the penalty that it charges over a basic rate from 100 basis points to 50 basis points. It sounds innocuous enough. But what that statement really means is that every major western money-printer will do whatever it takes to ensure that capitalism is never allowed to take place. It's no longer "too big to fail", it is "to fail is not allowed". Entire legions of zombie banks and nation states will continue to lurch forward, completely dead on the inside, but animated by endless amounts of fiat money that will only ensure a hyperinflation of all western fiat currencies.It is possible they could keep this game going for a few more years. Probably not much longer than 3 or 4, however. And it could happen much sooner than that, so to not prepare now is the height of risk-taking. We've been preparing by owning precious metals and the companies that mine or explore for gold and silver. As all the western central banks have shown their outright commitment to printing money we believe that it will ignite a gold and silver stock bubble that will be one for the ages. And, as we've outlined for subscribers over the years, we will then hope to "cash" in our stocks at ludicrous gains and look to get into hard assets once again
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| Did Central Bank Coordinated Easing Also Include Manipulation of The Gold Market? Posted: 30 Nov 2011 01:18 PM PST On a day when coordinated central bank monetary easing sent stocks and commodities soaring into orbit, the price action in the gold market was curiously muted. The Dow Jones, S&P 500 and Nasdaq all increased by over 4%. Gains in various S&P sectors ranged from 4.75% for the transportation sector to 7.51% for the financial [...]
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| Of Imminent Defaults And Self Deception. Kyle Bass Prepares For The Worst Posted: 30 Nov 2011 01:03 PM PST In his latest letter to LPs, Kyle Bass of Hayman Capital Management, offers his tell-tale clarity on what may lie ahead for Europe and Japan. With his over-arching thesis of debt saturation becoming more plain to see around every corner, Bass bundles the simple (and somewhat unarguable) facts of quantitative analysis with a qualitative perspective on the cruel self-deception that we all see and read every day about Europe.
His Japanese scenario is no less convicted, as we have discussed a number of times, with the accelerant of this debt-bomb being the very-same European debacle and his time-frame for this is set to begin in the next few months. (h/t The Fly)
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| The Gold Price Jumped 32.10 Today, Can It Break Through It's $1,800 Resistance? Posted: 30 Nov 2011 12:33 PM PST Gold Price Close Today : 1745.50 Change : 32.10 or 1.9% Silver Price Close Today : 3273.1 Change : 87.8 cents or 2.8% Gold Silver Ratio Today : 53.329 Change : -0.462 or -0.9% Silver Gold Ratio Today : 0.01875 Change : 0.000161 or 0.9% Platinum Price Close Today : 1558.30 Change : 21.30 or 1.4% Palladium Price Close Today : 614.10 Change : 25.35 or 4.3% S&P 500 : 1,246.96 Change : 51.77 or 4.3% Dow In GOLD$ : $142.66 Change : $ 3.25 or 2.3% Dow in GOLD oz : 6.901 Change : 0.157 or 2.3% Dow in SILVER oz : 368.02 Change : 5.24 or 1.4% Dow Industrial : 12,045.68 Change : 490.05 or 4.2% US Dollar Index : 78.35 Change : -0.653 or -0.8% The GOLD PRICE jumped $32.10 today (1.9%), clearing at a single bound the troublesome $1,720 and $1,740 resistance. Alas, it couldn't get through $1,750, as the $1,749.56 high proved. Closed at $1,745.50 The GOLD PRICE showed a straight up single move with the coinciding with the central bank announcement but then it traded flat the rest of the day. Hmmmm. GOLD has poked its head through its overhead trendline, but not by much. Odds say it will rise. Stoutest resistance remains at $1,775 and $1,800. The SILVER PRICE also spurted up on Blarney, bursting thru 3220c resistance, and adding 87.8c (2.8%) to close at 3273.10. That was near the 3293c high. The SILVER PRICE has now once again come to the 3300c barrier, where we have so often met before. SILVER did not quite break through its 20 DMA (3330c), and remains in a large even-sided triangle that has been building since the high mid-August and the low end-September. It's traded all the way into the nose, so must resolve up or down soon. If silver and gold continue to advance -- that is, if today's jumps were something more than a reaction to the central banks' Blarney -- then I will throw in the towel and start buying heavily. Silver will break out to the upside if it closes above 3300c then keeps on advancing. Gold still must clear $1,800 to convince me finally. The really fun part of commenting about markets is the never-failing threat of a Government Surprise Party sprung overnight, changing the whole outlook and leaving you looking like a natural born fool. Something stinks here like that wild-caught salmon your wife bought at the grocery store that then fell out of her grocery bag under your car seat just before you left town in July for three weeks in the other car. Let's keep this as simple as possible. The Establishment, whose agents are central bankers and governments, has only two weapons against financial crisis: BLARNEY and LIQUIDITY. Blarney is trotting out Warren Buffett or some obscure economist with Coke-bottle bottom glasses or some president or politician to make a statement that the economy is really basically sound, so all you victims really don't need to flee out of the trap after all. Liquidity is printing more money, since after all a "financial crisis" or "panic" is a panic for money. More money, less panic. Both the Blarney and Liquidity cannons aim to win the same hill: TIME. Buy time to let the panic settle down. This morning all the world's important central banks -- the US Federal Reserve, Bank of Canada, Bank of England, Bank of Japan, Swiss National Bank, and European central bank -- announced a big co-ordinated intervention to increase liquidity by lowering swap rates. (Swaps are central bank transactions where one bank swaps for another currency with a guaranty to swap back in the future.) Since the European banks have been starved for liquidity and need dollars, the ECB needs to borrow them from the Fed. Today's action makes it 50 basis points cheaper (0.5%) to borrow dollars. Get this much straight: This does not by any stretch of the imagination solve the euro crisis, it only mollifies the liquidity fever. Now think further: long term, how will this act, increasing liquidity a.k.a. printing more money, affect (1) the value of currencies, (2) the value of stocks, and (3) the value of silver and gold? (1) inflation will drive down currency values. (2) inflation will increase economic uncertainty and management perplexity while it pounds capital down the rat-hole of mal-investment. Twill drive the value of stocks down, or at least, they will not gain value faster than the inflation can pilfer it. (3) Inflation is the chief and only driver of silver and gold bull markets, so more inflation means higher silver and gold prices. Short term, they throw these government surprise parties and send markets screaming in the opposite direction for a few days, then sobriety takes over again and the gains disappear. I'm not sure where this leaves in the next 3 months with silver and gold. They may resume their correction for one more push down, or we may have seen the lows last week. I bought some today, just on the chance that tomorrow gold climbs over $1,750, calling everybody in the world to buy. US DOLLAR INDEX today fell 65.3 basis points to 78.354 (down 0.84%). No surprise there, when the biggest central banks in the world announce they are going to cheapen the dollar. Euro rose 0.98% to 1.3441, yen rose 0.48% to 128.92c/Y100 (Y77.57/$1). Surprise! This move didn't wreck the dollar. It brought it back to the uptrend line, but only poking thru it a little. Needs to hold 78. STOCKS rose in a frenzy. Dow gained 490.05 (4.24%), a huge move, to close 12,045.68. S&P 500 rose 512.77 (4.33%) to 1,246.96. That big jump took stocks thru their 50 and 200 day moving averages (11,553.37 and 11,949) and they closed near the high of the day. Lots of energy, expended, don't you think, only to bring them back to the established downtrend line? Yep, that's right, I NEVER say anything "fair" about stocks, because I am persuaded that they are a trap, cocked and loaded to take away your money. If I am wrong, I am at least sincerely wrong. I invite you not to ponder, as an idea too hideous for minds of good will, that this entire financial crisis, from 2006 until now, has been managed to force the tortured people of the world to beg for a cure, a supranational government that will end the economic pain. I'm not sure the Establishment would precipitate that, but they will surely turn such events to their centralizing advantage. Now y'all know everything I know, but that ain't much. After all, I'm still just a natural born fool from Tennessee who believes that cornbread and greens with integrity tastes better than cake won as a tapeworm, and that borrowing money and blowing it is not as wise as producing something and creating wealth and -- perish the thought -- living within your means. Clearly, I am destined for extinction. Well, either that, or the other side is, but without the Blarney and Liquidity cannons how can I win? I have only reason and common sense and the eternal truth to work with. What's that against Blarney, Liquidity, Central Banks, and USA Today? 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 bubble has burst, primary trend down. 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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| Sprott appeals to silver miners: Start treating your metal as money Posted: 30 Nov 2011 12:09 PM PST 8:10p ET Wednesday, November 30, 2011 Dear Friend of GATA and Gold (and Silver): For many years GATA has argued that the scheme to suppress the price of gold and silver has been undertaken because those precious metals are money, competing with and potentially far superior to government-issued currencies, in part because use of the monetary metals facilitates individual liberty and limited government. Unfortunately most mining companies couldn't have cared less. But maybe they'll think about caring now that Sprott Asset Management CEO Eric Sprott and his associate, David Baker, have published their appeal, "Silver Producers: A Call to Action." After all, why should investors think of the metal as money if silver miners themselves won't? Sprott and Baker write: "Silver miners need to acknowledge that investors buy their shares because they believe the price of silver is going higher. We certainly do, and we are extremely active in the silver equity space. We would never buy these stocks if we didn't. Nothing would please us more than to see these companies begin to hold a portion of their cash reserves in the very metal they produce. Silver is just another form of currency today, after all, and a superior one at that. "To take this idea further, instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver outside of the banking system. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine? "Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals. And it serves to remember that thanks to zero interest rates, banks don't pay their customers to take on those risks today." The Sprott-Baker essay is posted at the Sprott Internet site here: http://www.sprott.com/Docs/MarketsataGlance/2011/MAAG-11-11-Silver-Produ... And at King World News here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/30_E... Meanwhile at King World News, money manager Rick Rule surveys today's vast credit expansion by Western central banks and marvels that Americans now are going to bail out not only their own brain-dead bankers but those of Europe too. An excerpt from the interview with Rule is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/30_R... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Completes Operating Agreement Golden Phoenix Minerals Inc. (GPXM) has entered a joint venture operating agreement with Silver Global S.A., a Panamanian corporation, governing the operational and management aspects of their new joint venture company, Golden Phoenix Panama S.A., a Panamanian corporation formed to hold and operate the Santa Rosa gold mine in Canazas, Panama, and explore the mine's adjacent property. Golden Phoenix will be manager of the joint venture company. Silver Global will handle all social programs, political and community relations, and human resource matters for the joint venture company in Panama. Golden Phoenix and Silver Global also have agreed to work together on all future acquisitions within Panama and to bring such new opportunities to the joint venture company. Golden Phoenix will be earning in to a 60 percent interest (and potentially an 80 percent interest) in the Santa Rosa mine. Upon signing the joint venture agreement and completing the corresponding acquisition payment, Golden Phoenix will earn an initial 15 percent interest in the joint venture company. Tom Klein, CEO of Golden Phoenix, says the agreement "creates a solid foundation for the development and planned re-opening of Mina Santa Rosa." For Golden Phoenix's full statement on the joint venture operating agreement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-completes-joint-ven... Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... 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 For Continuous Wealth Creation, the Hera Research Newsletter The life cycles of companies that produce natural resources allow investors to allocate assets among companies at different stages of development and to profit from transitions between stages. Based on natural resource company life cycles, the Hera Research Newsletter maximizes profits through deep, fundamental analysis at each stage of development and by moving gains back to earlier-stage companies in a continuous wealth-creation process. Hera Research covers a pipeline of high-quality natural resource companies at different stages of development. The companies span discovery and production of gold, silver, and platinum group metals, select base metals, oil and gas, green energy, agriculture, rare earth elements, uranium, and more. Discover the unique value of the Hera Research Newsletter by visiting: http://www.heraresearch.com/newsletter.html Or call Ron Hera at 360-339-8541x101.
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| Posted: 30 Nov 2011 12:04 PM PST Deflation is coming
Well, it looks like things have changed from 2002, we aren't much different now from where Japan was. The US now has a large overhang of government debt and massive financial problems in the banking and corporate sectors muting the effects of monetary policies (ZERO HOUR).
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| Posted: 30 Nov 2011 11:43 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: I guess you all heard that the Fed (backstopped by the USA taxpayer) supplied massive liquidity to the world today by entering into swap arrangements with various central banks. As I have mentioned to you on previous occasions, we do not have a liquidity problem but a solvency problem. This only kicks the can down the road for another couple of months. The world is broke and can never repay the debt it owes. We will get into all of that but first let us head over to the comex for exciting news on the delivery front. The price of gold rose by $40.80 to $1745.90 with the announcement of the Fed providing massive USA dollars to central banks around the world. The price of silver added $1.00 to finish the comex session at $32.85. Read More @ HarveyOrgan.Blogspot.com
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| Peter Schiff Explains What Today's Global Fed-Funded Bailout Means For The Future Posted: 30 Nov 2011 11:27 AM PST If anyone is still confused by what has transpired today, here is Peter Schiff explaining in simple words, why what happened "may be one of the most important economic events of the year" and what to do next: "Today's unprecedented announcement by the world's most powerful central banks was a loud and clear bell ringing to buy precious metals. The move, disguised as an attempt to help the fragile state of the global economy, is in reality a move to prop up failing banks in Europe and the US. By reducing interest rates paid for dollar swaps, central bankers are in effect increasing the quantity of global dollars in circulation. The result? The dollar will weaken, inflation will rise, and gold will soar. Gold was up more than $30 today, and the dollar got crushed. I urge you to take 7 minutes to watch the video I recorded exclusively for my subscribers a few hours ago. It explains, in plain language, what happened today – and what is the likely outcome for your portfolio. This may be one of the most important economic events of the year." And pardon Schiff's self-promotional piece at the end, but the truth is that he is essentially correct about what the actions means from a big picture perspective. Furthermore, as Goldman made all too clear, this is merely the beginning as more and more inflationary actions have to be undertaken by central banks to save banks from being crushed by untenable debt loads. Whether they succeed in overturning the deflationary tsunami is unknown. What is certain is that they will bring fiat currencies to the verge of viability (and beyond) in trying.
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| Peter Schiff Explains What Today's Global Fed-Funded Bailout Means For The Future Posted: 30 Nov 2011 11:27 AM PST
If anyone is still confused by what has transpired today, here is Peter Schiff explaining in simple words, why what happened "may be one of the most important economic events of the year" and what to do next: "Today's unprecedented announcement by the world's most powerful central banks was a loud and clear bell ringing to buy precious metals. The move, disguised as an attempt to help the fragile state of the global economy, is in reality a move to prop up failing banks in Europe and the US. By reducing interest rates paid for dollar swaps, central bankers are in effect increasing the quantity of global dollars in circulation. The result? The dollar will weaken, inflation will rise, and gold will soar. Gold was up more than $30 today, and the dollar got crushed. I urge you to take 7 minutes to watch the video I recorded exclusively for my subscribers a few hours ago. It explains, in plain language, what happened today – and what is the likely outcome for your portfolio. This may be one of the most important economic events of the year." And pardon Schiff's self-promotional piece at the end, but the truth is that he is essentially correct about what the actions means from a big picture perspective. Furthermore, as Goldman made all too clear, this is merely the beginning as more and more inflationary actions have to be undertaken by central banks to save banks from being crushed by untenable debt loads. Whether they succeed in overturning the deflationary tsunami is unknown. What is certain is that they will bring fiat currencies to the verge of viability (and beyond) in trying.
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