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- How To Call Twists And Turns Of The Gold And Silver Markets
- Should We Expect Deflation, Inflation Or Hyperinflation Over The Next Decade?
- LISTEN: Gold & Silver..The Sky is Falling
- Negative Gold Lease Rates
- Gold is on the Verge
- Collectors Universe May Have Just Bottomed
- $10,000 Portfolio Update: RIM CEOs A Decade Late And A Dollar Short
- Gold Oversold a“Buying Opportunity”
- Gold Price Finds Buying Support
- Temporary Declines Don't Change Bullish Outlook for Gold and Silver
- Legal Tender Gold: Face Value or Intrinsic Value?
- Gold Oversold and “Buying Opportunity” as “Protection Against Currency Debasement”
- Pathogenesis of Central Bank Ruin
- WATCH: Juan Castañeda on Gold
- Central Banks Loosing Gold Market
- Most traders are making a mistake with gold
- Five reasons to ignore the "Top ten stocks for 2012" lists
- Morning Outlook from the Trade Desk - 12/16/11
- Calming Silver Investor Fears
- Jim Rickards: The US Treasury Shorts the Dollar
- Indian Gold Price Predictions
- The MF Global Black Box
- 50 Economic Numbers From 2011
- Bad Publicity Bullish For Gold: John Hathaway
- Jim Rickards on Gold...and the U.S. Dollar: King World News
- Australian Banks Given One Week To Prepare For European "Meltdown"
- Debt crisis: Brussels accord on the verge of collapse
- Class-action lawsuit to seek recovery for MF Global customers
- Indian analysts differ on gold price predictions
- A Devastating Dollar Short-Squeeze Is Gathering Steam
| How To Call Twists And Turns Of The Gold And Silver Markets Posted: 16 Dec 2011 05:35 AM PST By Nigam Arora: I developed the ZYX Global Multi-Asset Allocation Model, which allocates assets on a global basis between equities, fixed income securities, commodities, real estate, and currencies. The model further drills down to sub-asset classes, sectors, and sub-sectors. Since I make recommendations on based on this model, I monitor a large number of markets. Making money in gold and silver markets is by far the easiest. Before 2008, it was real easy to make money on gold and silver. When inflation heated up, gold and silver went up. When inflation decelerated, gold and silver drifted down. When there was a geopolitical crisis, gold and silver spiked up, and as the crisis calmed down, gold and silver came down. Over the last few years and especially in 2011, the above correlations have broken down. But the two variables that determine gold and silver prices are still the same, inflation and risk. However sub-variables Complete Story » | |
| Should We Expect Deflation, Inflation Or Hyperinflation Over The Next Decade? Posted: 16 Dec 2011 05:22 AM PST By Thomas Lott: This morning, Consumer Price Index (CPI) figures indicated that monthly prices were exactly flat in November compared with the month before. On an annual basis, CPI came in at 3.4%, a slight slowdown compared with last month. At its peak earlier this year, annual inflation got as high as 3.8%, but with economies slowing, oil falling and retail discounting, it seems that price increases are tamer. But looking long term as an investor, having a view on inflation over the next decade is critical to successful investing. One camp is arguing that we will have very high inflation. Gold and silver price performance over the past few years clearly indicates this. With central banks simply printing fiat currencies in huge quantities, this can only lead to substantial inflation in the coming years, the argument goes. Perhaps even hyperinflation. On the other hand, the bond market implies that inflation will be Complete Story » | |
| LISTEN: Gold & Silver..The Sky is Falling Posted: 16 Dec 2011 04:47 AM PST
Gold has fallen from the mid $1700′s to just under $1600 now. If you listen to the mainstream media, and we can't understand why you would, this represents the popping of the precious metals bubble. These financial know it all's are literally frothing at the mouth, they are so excited about the prospects of gold and silver having a down year. Well, in a super-bull market, there's nothing unusual about one or more down years. This situation has occurred during numerous bull markets in stocks, commodities and virtually anything else you can think of. As J.P. Morgan once quipped, "The market will tend to fluctuate." Which shows that when you know which way the market is heading, you really don't need to watch the daily price unless you're looking to buy or sell. And through the lense of time, this moment in history will prove that if one had resources and a confident opinion, this was an excellent time to buy. Any takers? Much more @ KerryLutz.com or @ 347.460.LUTZ | |
| Posted: 16 Dec 2011 04:36 AM PST Charlatan Exposed: from MetalAugmentor.com: Much has been made recently about the "negative gold lease rates" derived from the London Bullion Market Association (LBMA) statistical gold and silver data. For example, there was coverage here and here late last week claiming that banks are having to lend gold at a loss. This implies that plenty of gold is available for leasing presumably because there is a declining desire to own gold, but in reality it is the reluctance to sell gold outright — including by central banks and despite the ongoing correction — that the market appears to be telegraphing via negative gold lease rates. This is a welcome change from a gold market recently dominated by weak-handed participants (Wall Street types like Paulson, Cramer, etc.) who primarily look to gold for its ability to generate speculative profits during periods of economic instability. Moreover, we believe the focus on negative lease rates misses the point of the current gold market structure and instead we should be looking at changes in the gold forward rate. The gold forward rate has increased during both the late September and current sell-offs in gold, which probably means that gold is being leased by central banks in order to provide liquidity for the banking system. Importantly, central bank gold is probably not being sold outright despite rumors to the contrary. The implication is that the current gold correction is similar to past events where gold has been used as a liquidity management tool. We should not bemoan such a development since gold's role as the ultimate form money with no counterparty risk is in fact the best-suited for liquidity management out of all the asset classes. Read More @ MetalAugmentor.com | |
| Posted: 16 Dec 2011 04:33 AM PST Gold is on the Verge of Moving into Bubble Phase of the Bull Market by Toby Connor, GoldScents via GoldSeek.com:
I know that during a correction of the magnitude we are seeing right now it seems more like the gold bull is dead than on the verge of moving into what I expect will be one of the greatest parabolic moves in history. However, all of the conditions necessary to launch the bubble phase are now in place. Gold is in the process of putting in an intermediate degree bottom. That bottom, which is only days away if it didn't already happen today, is going to be the single greatest buying opportunity, probably of the decade. Gold sentiment is at multiyear lows. Retail traders that bought at $1900 have gotten wiped out. The media is full of stories calling for the death of the gold bull. Institutional traders from John Paulson, George Soros, and Dennis Gartman have all gotten knocked off the bull. Breadth in the universally hated mining sector is back down to levels that have only been exceeded during the crash in 2008. Read More @ GoldSeek.com | |
| Collectors Universe May Have Just Bottomed Posted: 16 Dec 2011 04:00 AM PST By Jay M. Taylor: Collectors Universe (CLCT) traded under $13 yesterday In fact, shares traded under $12 at one point yesterday! Did you miss it? It wouldn't surprise me, very few people follow this stock and there typically won't be even a single question asked of management at the end of the earnings calls. Sometimes it feels like nobody is listening ... The last time that shares of Collectors Universe traded under $13 was about 2 months ago when I bought some for just around $12.90. Over the next month and a half those shares climbed towards $16 and I sold after it went ex-dividend, collecting $.325 in dividend and about $2.50 in gains per share. I discussed this strategy in more length in my previous article and also mentioned that I plan to follow it again. For additional context, please read my first article about Collectors Universe or this one (which I did Complete Story » | |
| $10,000 Portfolio Update: RIM CEOs A Decade Late And A Dollar Short Posted: 16 Dec 2011 03:59 AM PST By Rocco Pendola: As I presciently called the play-by-play of Research in Motion's (RIMM) collapse throughout 2011, I have been less shocked by the existence of RIMM bulls than dismayed at their outrage toward me and other bears. It's not about the sharp differences of opinion, often inane criticism or downright personal attacks. Rather, I simply cannot comprehend their misdirected anger. Here, they have every reason in the world to spew outrage at RIM's co-CEO team of Jim Balsillie and Mike Lazaridis. Yet, as psych 101 teaches us, RIMM bulls filter, deflect, avoid and minimize in a never-ending battle with cognitive dissonance, if they even get that far. After RIM's FY12 Q3 conference call, however, I have to think RIM bulls will finally just move to manic outrage. But, maybe not. It apparently did not bother the most ardent RIMM longs that the company sent investors on a wild goose chase with the Complete Story » | |
| Gold Oversold a“Buying Opportunity” Posted: 16 Dec 2011 03:49 AM PST Gold Oversold and "Buying Opportunity" as "Protection Against Currency Debasement" from GoldCore: Gold is trading at USD 1,599.20, EUR 1,222.20, GBP 1,028.30, CHF 1,498.40, JPY 124,340 and AUD 1,595.0 per ounce. Gold's London AM fix this morning was 1,589.50, GBP 1,022.84, and EUR 1,218.94 per ounce. Yesterday's AM fix was USD 1,590.00, GBP 1,026.54 and EUR 1,223.64 per ounce. Gold is 1.6% higher in dollars and higher in most major currencies after four sessions of heavy losses and a 7% loss this week – the biggest weekly loss since September. Liquidity squeezed speculators and banks have been closing long positions and selling gold this week but global physical demand remains robust. The Relative Strength Index (RSI) on spot gold returned to above 30, after spending 2 days below that mark in oversold territory two days ago. It is the first time that this has happened since September 2008 in the aftermath of the Lehman Brothers sell off. Read More @ GoldCore.com | |
| Gold Price Finds Buying Support Posted: 16 Dec 2011 03:47 AM PST from GoldMoney.com:
As can be seen courtesy of the MarketOracle chart below, the gold price could drop as low as $1,300-$1,400 and still be in a long-term uptrend. A 2008-style financial panic and dash for the dollar could result in a breach of the 35-month moving-average at the $1,300 mark. Given the likely monetary policy response to such a meltdown, however, one can feel pretty safe in assuming that this move – nasty though it would be for gold owners – would be nothing more than short-term in nature. Read More @ GoldMoney.com | |
| Temporary Declines Don't Change Bullish Outlook for Gold and Silver Posted: 16 Dec 2011 01:55 AM PST Volatile situation continues... | |
| Legal Tender Gold: Face Value or Intrinsic Value? Posted: 16 Dec 2011 01:29 AM PST http://www.lewrockwell.com/orig12/brekke2.1.1.html Legal Tender Gold: Face Value or Intrinsic Value? by Kevin Brekke A popular topic on forums sympathetic to personal ownership of gold bullion is the debate surrounding how to value certain gold coins. After all, in 1985 congress passed the Gold Bullion Coin Act that required the US government to mint and place in circulation gold coins. The coins were to be struck from 91.67% pure gold (22 karat) and minted in denominations of $5, $10, $25 and $50. The act was passed pursuant to Article I, Section 8, Clause 5 of the United States Constitution giving Congress the exclusive power to coin money and set its value. The act allowed American's to escape a currency system then monopolized by Federal Reserve notes. The act also spurred much conjecture about how, exactly, should the value of legal tender US gold coins be determined when the coins are used as a means of exchange. More specifically, if wages are paid in legal tender US gold coins, how should the employer calculate and report the wages paid: using the face value of the gold coins, or, the intrinsic value of the gold coins? That question was settled several years ago in a high-profile court case. Let's briefly review the sequence of events that handed the IRS one of its most coveted legal victories. In May 2003, the offices of Robert Kahre were raided by armed government agents. Robert Kahre and two dozen of his employees were handcuffed and charged, among other alleged offenses, with tax fraud. A Nevada businessman, Robert Kahre had been paying his employees with legal tender US gold coins and reporting employee wages to the IRS based on the face value of the coins. Kahre had been doing this for seven years at the time of his arrest, and had assisted 35 other contracting companies to do the same. No surprise, then, that the IRS did not look sympathetically on this practice, and even less so on it being adopted by a spreading core of converts. In April 2005, the Department of Justice (DOJ) indicated its intent to prosecute the case by issuing formal indictments. The trial began in May 2007 with Kahre facing 109 counts of criminal tax-related charges and conspiracy. In total, nine defendants stood trial on 161 charges. On September 17, 2007, and to the disbelief of the IRS and DOJ, the case ended with zero convictions. In post-trial statements from jurors, many said that the government had failed to prove that the defendants had acted to intentionally violate tax laws. But the champagne fizz and euphoria did not last long. In May 2009, Kahre once again stood before a jury of his peers in a second trial. Three months later, on August 14, 2009, Kahre and three other defendants were found guilty of several felony tax crimes, including conspiracy to defraud the IRS and tax evasion. The details of this case are informative and deserve a more thorough review than can be presented in this space. If interested, Google "Robert Kahre" and you will get sufficient hits to fill your weekend reading list. It's worth mentioning that Kahre and his defense team cited all the usual case history and constitutional evidence upon which their arguments where based, and much of it will no doubt be familiar to many readers. In spite of the case's outcome and the precedent it sets, there remains ongoing debate in the blogosphere about valuing a legal tender US gold coin in certain instances. Recently, a blogger running a pro-gold oriented site posted an article that suggested using the face value of a legal tender US gold coin to skirt the reporting requirements of FinCEN Form 105. Very, very bad advice. Anyone who has traveled internationally will likely be familiar with the requirements of this form. Filed with the US Treasury, Form 105, Report of International Transportation of Currency or Monetary Instruments, must be filed by persons who:
An attempt to transport legal tender US gold coins into or out of the US with a market value that exceeds the $10,000 limit, without submitting Form 105 and then subsequently being discovered will have seriously unpleasant consequences, the first being that the gold will be confiscated with zero chance of recovery. Fines are likely. Denied entry into the country has happened. And criminal prosecution is always a possibility. A "face-value" defense is sure to give everyone a good laugh as you wave bye-bye to your bullion. Don't end up like Robert Kahre. No matter how offensive or intrusive they may be, always follow IRS and Treasury reporting requirements. And when in doubt about the requirements, file. The only way to win in this war on financial privacy is to keep what you have and survive to fight the good fight. Of course, if you do decide to make the wise decision of moving a portion of your precious metal holdings overseas, you need to find the right storage facility. Arguably, the premier place in the world to do so is at Das Safe, in Vienna, Austria. In one of our recent reports, we paid a personal visit to the facility and collected the facts you need to determine if it's right for you. Download the free report here. Reprinted from International Man with permission. December 16, 2011 | |
| Gold Oversold and “Buying Opportunity” as “Protection Against Currency Debasement” Posted: 16 Dec 2011 12:55 AM PST | |
| Pathogenesis of Central Bank Ruin Posted: 16 Dec 2011 12:32 AM PST by Jim Willie, GoldenJackass.com viaGoldSeek.com:
Read More @ GoldSeek.com | |
| Posted: 16 Dec 2011 12:31 AM PST Juan Castañeda at the Gold & Silver Meeting 2011 He discusses the prospects of inflation in the coming years and what kind of monetary reform we might see. He also mentions the scant possibilities that regular people have available to them as protection, buying precious metals being one of them. | |
| Central Banks Loosing Gold Market Posted: 16 Dec 2011 12:30 AM PST Central Banks Are Steadily Losing Their Cover In The Gold Market by Chris Powell, GATA: Dear Friend of GATA and Gold: Thanks to the latest commentaries by Brady Willett of Fall Street, Tom Szabo of Metal Augmentor, and Jim Willie of the Golden Jackass, more people are realizing the potential for market manipulation through central bank gold leasing, of which there lately have been strong indications. In "Did Ron Paul Slay the Gold Bull?" Willett remarks that favorable lease rates "allow powerful interests to more readily manipulate gold": http://www.fallstreet.com/dec1511.html In "Charlatan Exposed: Negative Gold Lease Rates," Szabo writes: "The gold forward rate has increased during both the late September and current selloffs in gold, which probably means that gold is being leased by central banks in order to provide liquidity for the banking system. … The gold bugs are essentially right that the gold price is falling this time because paper gold is flooding the market." Read More @ GATA.org | |
| Most traders are making a mistake with gold Posted: 16 Dec 2011 12:29 AM PST From The Big Picture: Ron Griess of the Chart Store suggests that the 200-day [moving average] is the wrong technical indicator to focus on regarding gold. Looking back to gold's 11-year bull market run, he suggests the... Read full article (with chart)... More on gold: Now you can get paid to invest in gold Why you should start paying attention to the price of gold A simple gold fact that should help you sleep well at night | |
| Five reasons to ignore the "Top ten stocks for 2012" lists Posted: 16 Dec 2011 12:25 AM PST From Abnormal Returns: The listicle is a staple of the financial media and blogosphere. The listicle, or list/article, is so favored because it does a good job of driving traffic. Part of the reason is likely due to our need to feel the world is, in some sense, predictable and forecastable that we can't resist clicking on these lists. The use of the listicle becomes especially acute around year-end. One of the favorite listicles around year-end is the "Top ten stocks for 2012." In that same vein, let's look at five reasons why these top stock lists are at best, a starting place for further research and at worst, just another example of financial porn... Read full article... More on stocks: Ten high-yielding stocks that could be great values right now Casey Research: Move these gold stocks to the top of your buy list You won't believe what top stock-picker Birinyi is recommending now | |
| Morning Outlook from the Trade Desk - 12/16/11 Posted: 16 Dec 2011 12:21 AM PST The weekends here, they are trying to rally the market from the blow-off. Long way go to test the 200 day ma. Still $30 away, in the olden days a good weeks worth of work, but in todays markets a mere few minutes. If it drops again today and trades close in the $1,560's , I think the $1,4 handle is just around the corner. We are definitely in a softer mode, but a $200 drop in the complex in under a week pretty much guaranteed a bounce. Strong equity market today could scare the shorts and short term bears enough to test the level, to break $1,620 would require a bigger catalyst. | |
| Posted: 16 Dec 2011 12:03 AM PST Some Facts That Should Calm Silver Investor Fears Before The Massive Catapult Higher from ETFDailyNews.com:
Take in the economic scenario the Fed faces, then ask yourself what the Fed will do about it and which planet will the silver price orbit after the dust settles. Here are the facts that should calm investor fears: "Let us be honest. The U.S. is still trapped in a depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP," The Telegraph's Ambrose Evans-Pritchard penned in a Jul. 4, 2010 article. Now look at Shadowstats economist John Williams' chart, below. GDP is again dropping, 18 more months later, from Evan-Pritchard's last year's Independence Day article. (The real GDP is calculated by Williams, shown by the blue line.) Read More @ ETFDailyNews.com | |
| Jim Rickards: The US Treasury Shorts the Dollar Posted: 16 Dec 2011 12:00 AM PST from King World News:
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| Posted: 15 Dec 2011 11:57 PM PST Indian Analysts Differ On Gold Price Predictions by Roman Baudzus, GoldMoney.com:
On Thursday morning the gold price dropped 3.8% to 28,300 rupees per 10 grams. According to the Indian analyst Sudarshan Sukhani in the following weeks the gold price will drop as low as 24,000 rupees per 10 grams. The prices at the Indian precious metal markets follow the price developments at the global markets – primarily the New York Comex and the London Bullion Market. Read More @ GoldMoney.com | |
| Posted: 15 Dec 2011 11:55 PM PST Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth from ZeroHedge:
In order to get to the bottom of every collapse (or death), a forensic analysis of the last minutes of any transition from life to death has to be perormed. So far, we have only had broad strokes of the key events in the last days of MF Global as obviously many of them will implicate the management team in gross criminal behavior. Until now, when courtesy of the CME we have received a full breakdown of every key events in the chronology of MF Global's last days on earth, starting with October 24, and the rating agency downgrade of the futures broker (the same catalyst incidentally that started the AIG death spiral waterfall… and yet clueless pundits will tell you the ratings are totally irrelevant), and ending with the firm's filing for bankruptcy protection. Anyone who has any interest in the MF Global collapse, which incidentally should be anyone who has capital in third party possession and thus has counterparty risk, should read this narrative from first to last bullet. Read More @ ZeroHedge.com | |
| Posted: 15 Dec 2011 11:54 PM PST 50 Economic Numbers From 2011 That Are Almost Too Crazy To Believe from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com | |
| Bad Publicity Bullish For Gold: John Hathaway Posted: 15 Dec 2011 09:20 PM PST ¤ Yesterday in Gold and SilverGold sold off about ten dollars by 3:00 p.m. Hong Kong time...and then rallied until just before 1:00 p.m. in London. Then the gold price rolled over from there, hitting its low of the day at 10:45 a.m. in New York. The subsequent rally didn't get far...and the price traded quietly in a tight range for the rest of the New York trading session. The gold price closed at $1,570.60 spot...down 5.90 on the day. Net gold volume was a pretty chunk 195,000 contracts.
Silver traded a dollar lower until 3:00 p.m. Hong Kong time...and then rallied back to unchanged by 8:30 a.m. in London, before trading sideways until exactly 9:30 a.m. in New York. Then silver got sold off for 80 cents...and it's low came at 10:45 a.m...the same time as gold's low. The rally that followed managed to get the silver price into positive territory by the end of trading in the New York Access Market. Silver closed at $29.28 spot...up 32 cents on the day. Volume was a chunky 45,000 contracts.
The dollar didn't do a lot, drifting lower and closing down about 20 basis points on the day.
The gold shares started off the trading day in positive territory, but that didn't last very long. The bottom came at 10:45 a.m....the low for both gold and silver. The shape of the HUI and the Dow charts looked like carbon copies of each other...except for the fact the Dow finished up...and the HUI closed down 1.47%.
With the odd exception, the silver shares fared better than their golden cousins...and Nick Laird's Silver Sentiment Index closed down only 0.87%.
(Click on image to enlarge) The CME Daily Delivery Report showed that 632 gold and 9 silver contracts were posted for delivery on Tuesday. In gold, Goldman Sachs and HSBC were the two big short/issuers...and JPMorgan and HSBC were the big long/stoppers. So far in December...2.1 million ounces of gold have changed ownership on the Comex, but not one bar of that has been taken off the exchange, although it may have changed racks in the warehouses. The link to yesterday's Issuers and Stoppers Report is here. There were some withdrawals from both GLD and SLV yesterday. GLD had a very chunky withdrawal of 476,494 troy ounces...and SLV holdings declined by 826,624 ounces. The U.S. Mint had another sales report yesterday. They sold 6,000 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and 50,000 silver eagles. The extent of the activity at the Comex-approved depositories on Wednesday was a tiny withdrawal of 1,897 troy ounces of silver. One thing that Ted Butler and I talked about on the phone yesterday were the new short interest positions in both SLV and GLD. The latest report came out a couple of days ago...and it showed that GLD's short position was down 31.1% from the previous report two weeks ago. Two weeks ago, the short interest in GLD was 22 million units...and now it's down to 15.2 million units. That's a big change. However, in SLV, the change went in the other direction, as the short interest increased by 9.7%. The number of units/ounces short rose from 23 million to 25.2 million, which was not what either Ted nor myself were hoping for. The next short interest report isn't out for another couple of weeks...and after the price action this week, we're both expecting big declines in both. We'll see. For a change, I don't have that many stories today, so I hope you'll have time to run through most of them. I have no idea when the next rally in gold and silver will begin, or how far it will be allowed to run when it does. Jim Rickards on Gold...and the U.S. Dollar. Richard Russell - Gold Trading Above $1,500 is Bullish Action. No takers for Grandich's million-dollar gold price challenge. ¤ Critical ReadsSubscribeNew Foreclosure Wave is ComingDespite a seasonal slowdown in overall foreclosure activity, and a process still bogged down and backed up by the "robo-signing" processing scandal, the U.S real estate market is about to be hit by another surge of bank repossessions, according to a new report from the online foreclosure sale site RealtyTrac. As banks resubmit millions of documents and courts begin hearing cases again, the backlog of over four million delinquent loans will start surging through the pipeline again. "November's numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs [bank repossessions] or short sales sometime early next year," said James Saccacio, co-founder of RealtyTrac. "Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November." This story, posted over at the cnbc.com website yesterday, was sent to me by West Virginia reader Elliot Simon...and the link is here.  Citing 'Legal Error,' S.E.C. Says It Will Appeal Rejection of Citigroup SettlementIn a statement accompanying a filing in Federal District Court in New York, the agency cited "legal error" in the decision in late November and said it would ask the United States Court of Appeals for the Second Circuit to overturn the opinion of Judge Jed S. Rakoff. In the ruling, the judge rejected an agreement for Citigroup to pay $285 million and accept an injunction against future violations of an antifraud provision of federal securities laws. Judge Rakoff's ruling shook a central pillar of federal securities law, potentially upending a practice that allows the S.E.C. to settle hundreds of enforcement cases each year. The commission usually settles charges with companies by getting them to pay a fine and agreeing to reimburse investors without making them admit or deny the charges. This story was posted in The New York Times yesterday...and was provided courtesy of reader Phil Barlett. The link is here.  Fitch: US Government Support for Banks DecliningFitch Ratings says U.S. government financial support for banks is declining and argues that future bailouts will likely be restricted to just eight lenders it regards systematically important. In a report issued Thursday on the prospect for future government aid to troubled banks, Fitch concludes that only Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., JP Morgan Chase & Co., State Street Corp. and Wells Fargo & Co. are candidates for government financial support. Fitch has a support rating floor for these banks of "A," down from "A+." This AP story is another Phil Barlett offering from yesterday's New York Times...and the link to that is here.  Class-action lawsuit to seek recovery for MF Global customersChris Powell sent out the following GATA dispatch last night. GATA's friends at the Berger and Montague law firm in Philadelphia have been asked to bring a federal class-action lawsuit seeking recovery for clients of the MF Global brokerage house who were expropriated in the firm's collapse. MF Global clients interested in participating in the lawsuit should contact Berger and Montague's Merrill Davidoff at mdavidoff@bm.net or 215-875-3084...or Michael DellAngelo at mdellangelo@bm.net or 215-875-3080. The link to the GATA release is here.  Debt crisis: Brussels accord on the verge of collapseSome of the world's most powerful investment banks were downgraded by ratings agency Fitch as Germany's cherished European fiscal compact appeared to be unravelling. Mario Draghi delivered a speech in Berlin on Thursday and said there's "no external savior" for heavily indebted governments in the eurozone debt crisis. Amid fresh warnings that Europe is triggering a 1930s-style global depression, the German chancellor faced open rebellion against the key plank of her Brussels accord. The leaders of Hungary and the Czech Republic told a joint conference in Budapest they were ready to reject the planned treaty changes and implied move towards a centralised tax system. Czech prime minister Petr Necas said he was "convinced that tax harmonisation would not mean anything good for us". This must read story was posted in The Telegraph late last night...and is Roy Stephens first offering of the day. The link is here.  The sad death of multi-lateralism makes way for a more sinister trendLike much of what passes as agreed policy in Europe these days, the deal announced only last weekend to address the eurozone's gathering debt storm is fast unravelling. Key objections have been raised in national parliaments to the fiscal disciplines that the new, and spectacularly mis-named, "stability union" imposes on members of the eurozone, while the beefed-up financial backstop to halt further market contagion already looks pretty much dead in the water. Nor is it just within the narrow confines of the eurozone that the financial crisis is testing multilateral solutions close to destruction. Who could in any case regard the vicious programme of austerity measures prescribed by multilateral arrangements as any kind of solution? Most shareholders in the International Monetary Fund, including Britain and the US, are balking at the idea of coughing up yet more money to bail out Europe's monetary union. This is another must read that was posted at the telegraph.com website last evening. It's another Roy Stephens offering of course...and the link is here.  IMF's Lagarde: Europe Crisis 'Escalating'In a speech on Thursday, Lagarde said that if countries don't work together, the world will face a situation similar to the 1930s, before the world slid into World War II. "There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding, but escalating at a point where everybody would actually have to focus on what it can do," Lagarde said. If the international community doesn't work together, "the risk from an economic point of view is that of retraction, rising protectionism, isolation," Lagarde said. "This is exactly the description of what happened in the '30s and what followed is not something we are looking forward to." This Bloomberg story from yesterday morning was sent to me by reader Scott Pluschau...and it's worth skimming. The link is here. Jim Rickards on Gold...and the U.S. Dollar: King World News Posted: 15 Dec 2011 09:20 PM PST  Here's an interview that Eric did with Jim Rickards yesterday. He sent me the blog very late last night. It's definitely worth the read...and the link is here. | |
| Australian Banks Given One Week To Prepare For European "Meltdown" Posted: 15 Dec 2011 09:20 PM PST  According to the Australian Finance Review, banks down under "have been given 1 week by regulators to stress test how they would handle a spike in joblessness, plunge in home prices spurred by EU debt crisis." Aka: a European "Meltdown". This zerohedge.com piece from yesterday afternoon was sent to me by reader Phil Barlett...and it's certainly worth a minute of your time. The link is here. | |
| Debt crisis: Brussels accord on the verge of collapse Posted: 15 Dec 2011 09:20 PM PST  Some of the world's most powerful investment banks were downgraded by ratings agency Fitch as Germany's cherished European fiscal compact appeared to be unravelling. Mario Draghi delivered a speech in Berlin on Thursday and said there's "no external savior" for heavily indebted governments in the eurozone debt crisis. | |
| Class-action lawsuit to seek recovery for MF Global customers Posted: 15 Dec 2011 09:20 PM PST  Chris Powell sent out the following GATA dispatch last night. GATA's friends at the Berger and Montague law firm in Philadelphia have been asked to bring a federal class-action lawsuit seeking recovery for clients of the MF Global brokerage house who were expropriated in the firm's collapse. MF Global clients interested in participating in the lawsuit should contact Berger and Montague's Merrill Davidoff at mdavidoff@bm.net or 215-875-3084...or Michael DellAngelo at mdellangelo@bm.net or 215-875-3080. The link to the GATA release is here. | |
| Indian analysts differ on gold price predictions Posted: 15 Dec 2011 09:00 PM PST According to local experts, Indian stock markets are in a downward trend and will continue to drop, with foreign investors fleeing from emerging market stocks and currencies. The stock markets and ... | |
| A Devastating Dollar Short-Squeeze Is Gathering Steam Posted: 15 Dec 2011 08:55 PM PST |
Gold and silver prices have stabilised somewhat over the last day, with the gold price finding strong support near the $1,550 level. Silver has received good bids on drops towards $28 per ounce.
Central banks are the current sovereign debt market. It is a vacated market. They are the majority bidders via debt monetization. The monetary inflation has become the New Normal and a travesty. In perverse fashion, the financial markets celebrate the monetized purchases, even calling for higher volume. In the process, bond and stock market integrity has been destroyed. Foreign creditors depart the USTreasury Bond market. Large European banks depart the Southern Europe sovereign debt market. Central banks step in to avert panic as the underlying structure to the global monetary system crumbles. When government bond yields rose quickly in Europe, it was not from abandonment by their central bank. The big Euro banks sell boatloads of bonds while the EuroCB buys only truckloads. The bond market integrity has been deteriorating very quickly. The dependence upon the debt monetization process is vividly clear. It is hyper monetary inflation to fill the void, thus providing the dominant bid. Ironically, the dullard stock market mavens celebrate the arrival of the central bank purchases without truly comprehending the destroyed integrity of the bond market. IQ levels are falling along with stock index levels.
With tremendous volatility in the gold market, today King World News interviewed KWN resident expert Jim Rickards, senior managing director at Tangent Capital Markets, to get his take on the situation. When asked about the gut-wrenching moves that have been dominating the gold market as of late, Rickards replied, "Well, I always think it's important, Eric, to separate fundamentals and long-term trends. That's one thing you have to understand and get right. But there are short-term technical factors as well. Gold responds to both. In the long-run the fundamentals will prevail, but in the short-run the technicals can definitely dominate and this was a week where the technicals dominated."
According to local experts, Indian stock markets are in a downward trend and will continue to drop, with foreign investors fleeing from emerging market stocks and currencies. The stock markets and currencies of many emerging countries have been under strong sales pressure for weeks as the prospects for the global economy have been getting gloomier. The gold price could also continue dropping – though, according to analysts, the yellow metal will perform better than other assets.
Even though most Americans have become very frustrated with this economy, the reality is that the vast majority of them still have no idea just how bad our economic decline has been or how much trouble we are going to be in if we don't make dramatic changes immediately. If we do not educate the American people about how deathly ill the U.S. economy has become, then they will just keep falling for the same old lies that our politicians keep telling them. Just "tweaking" things here and there is not going to fix this economy. We truly do need a fundamental change in direction. America is consuming far more wealth than it is producing and our debt is absolutely exploding. If we stay on this current path, an economic collapse is inevitable. Hopefully the crazy economic numbers from 2011 that I have included in this article will be shocking enough to wake some people up.
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