Gold World News Flash |
- 20 Signs That Europe Is Plunging Into A Full-Blown Economic Depression
- Is Dr. Nouriel Roubini a Gynecologist & a Gold Hater?
- The U.S. Dollar Will Fall and Gold Rise?
- In The News Today
- Lehrman calls on Republicans to unite on 'sound dollar' platform
- Gold Bonds: Averting Financial Armageddon
- Key Events In The Coming Week
- Silver Update: 1/28/12 Junk Silver 2
- ARGUING WITH THE MARKET
- Exposing Silver Mythology, Part III
- Economic Collapse in the Western Nations – On the Edge with Max Keiser – 01-27-2012
- Outrageous! The Government Is Giving Out Free Cell Phones And Free Cell Phone Minutes To Welfare Recipients
- Michael Pento: Gold Shines as West Continues to Destabilize the World
- Gold Market Update
- Silver Market Update
- Germany Frets As Bailouts And Risks Balloon
- Creative Destruction: US Bancorp Buys Failed Institution in TN
- Bock and Rickards Agree: Goverments Want Gold to Go Higher!
- Davos Post Mortem
- “I can guarantee you this, if the Fed’s metric of inflation says we are rising at 2%, I promise you it’s closer to 7%, 8% or 9% in real terms. So the middle class is going to be wiped out.”
- Comex Silver Futures to Bullion Leverage Reaches 6.8 to 1
- Iran Sanctions Conducive to Weak Dollar and Spiralling Gold Prices
- Mike Kosares: Survivalist George Soros
- Pento - Gold Shines as West Continues to Destabilize the World
- Time to buy or sell silver or take a longer view?
- $140 Silver, Figures Don’t Lie
- Lagarde: Euro Zone Needs Clear, Simple Firewall
- “Golden Ben Bernanke” – Five Years Later
| 20 Signs That Europe Is Plunging Into A Full-Blown Economic Depression Posted: 29 Jan 2012 02:30 PM PST from End of The American Dream:
Read More @ EndOfTheAmericanDream.com
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| Is Dr. Nouriel Roubini a Gynecologist & a Gold Hater? Posted: 29 Jan 2012 02:17 PM PST Hat tip Wandstrasse & link to source here. One thing is certain: I'm glad my college daughter doesn't have Dr. [insert word for Indo-Malayan Evergreen Tree Here] for economics. We've been curious about Nouriel "Dr. Doom" Roubini's Tribeca loft ever since we heard his walls were "indented with plaster vulvas," partly because we couldn't even begin to imagine [...]
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| The U.S. Dollar Will Fall and Gold Rise? Posted: 29 Jan 2012 01:46 PM PST The Fed could keep Fed fund rates low until 2014 and does not dismiss another series of quantitative easing (QE3). The policy would possibly penalize the U.S. dollar and support gold. The future of Europe is instead linked to ... Read More...
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| Posted: 29 Jan 2012 01:37 PM PST Jim Sinclair's Commentary Harry and I discussing the gold market. Jim Sinclair's Commentary Words this hard could indicate actions soon. Israel warns time is running out before it launches strike on Iran Growing body of opinion suggests that Iranian response to an attack would be muted Saturday 28 January 2012 Kim Sengupta Continue reading In The News Today
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| Lehrman calls on Republicans to unite on 'sound dollar' platform Posted: 29 Jan 2012 12:56 PM PST 8:52p ET Sunday, January 29, 2012 Dear Friend of GATA and Gold: Writing for the New York Sun, the industrialist, philanthropist, and Reagan gold commission member Lewis H. Lehrman urges the Republican presidential candidates to unite around a platform of returning the United States to a system of sound money anchored by the gold standard, but one carefully reconfigured for the modern age so it can last. Lehrman's commentary is headlined "Lehrman To Romney, Santorum: Join the Alliance for a Sound Dollar" and it's posted at the Sun's Internet site here: http://www.nysun.com/national/lehrman-to-romney-santorum-join-the-allian... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand. Learn more here: https://marketforceanalysis.com/About_MFA.html Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. To read subscriber comments that show how much the service is appreciated, visit: https://marketforceanalysis.com/Testimonials.html The MFA service has been pioneered by market analyst and Gold Anti-Trust Action board member and researcher Adrian Douglas. The Market Force Analysis premium service provides: -- A bi-weekly report. -- Access to the MFA hot list of junior mining stocks derived from analysis of more than 800 mining stocks. The MFA hot list consistently outperforms well-known mining share indices like the HUI, GDX, and GDXJ. -- E-mail alerts about actionable trades. -- E-mail updates with important information. To obtain your 1-month free trial subscription to the Market Force Analysis letter, e-mail info@marketforceanalysis.com and put "MFA Free Trial" in the subject field. Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing a silver commemorative coin: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:
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| Gold Bonds: Averting Financial Armageddon Posted: 29 Jan 2012 12:54 PM PST It seems self-evident. The government can debase the currency and thereby be able to pay off its astronomical debt in cheaper dollars. But as I will explain, things don't work that way. Read More...
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| Posted: 29 Jan 2012 12:23 PM PST In addition to telling everyone to short the euro and go long the dollar (wink) Goldman Sachs is kind enough to summarize what the recurring Eurocentric rumor-based headlines of the coming week will be. From Goldman Sachs This past week brought a powerful reminder to the markets of just how dovish key players at the Fed remain, with the FOMC statement essentially doubling the conditional commitment period for the Fed Funds target range and Chairman Bernanke sounding quite open to further unconventional policies if the recovery remains weak. The advanced Q4 GDP print on Friday played into a weak recovery, with a strong contribution to growth from inventories casting doubt over the strength of growth in Q1. With the Fed once again signaling its dovish stance, and with overall FX positioning remaining very close to max long USD on our metrics, the dominant theme for the week continued to be a recovery in high-beta currencies against USD, a theme that has prevailed since the start of the year (Figure 1). Even with the recent rebound in high-beta FX, many of these currencies remain significantly weaker than their mid-2011 levels (Figure 2), so that there is certainly plenty of room for the recent rally to continue. In the wake of the FOMC, and with relatively positive developments in Europe ahead of this Monday's EU Heads of State summit, we are very much in this camp, and recommended three tactical USD shorts this week against EUR, CAD, and MXN. The week ahead starts with the EU Heads of State Summit, where discussions will be focused on finalizing negotiations around the fiscal compact, where we think important progress has been made, not least by allowing individual countries to police each other's budget policies. Attention will also be squarely focused on Greece, where negotiations over PSI continue, in addition to negotiations between the Troika and the government. The IMF mission is scheduled to remain in Athens at least through Friday. The week also brings important bond auctions, starting with Italy on Monday (at 5- and 10-year tenors), followed by France and Spain on Thursday. Outside of Europe, key data include the slew of global PMI's on Wednesday. Consensus sees China's PMI slipping below the 50 threshold in January. We are slightly more cautious than consensus on the ISM, expecting an essentially unchanged reading. The week ends with the all-important nonfarm payroll release. We think nonfarm payroll growth probably slowed somewhat in January given less of a boost from favorable weather and seasonal factors. However, we think the pace of employment growth, combined with weak labor force participation, may still be enough to pull the unemployment rate down a touch. Monday Jan 30th Philippines GDP (Q4). We expect the Philippines' Q42011 real GDP to grow 4.0% yoy, compared to 3.2% yoy growth in the previous quarter. Weak exports continue to weigh on growth, while resilient domestic consumption provides some buffer. Consensus expectations stand at 3.8% yoy. EU Heads of State Summit Italy bond auction US Core PCE Price Index (Dec). We expect the year-over-year rate of core PCE growth to peak at 1.8% in this report, just below the Fed's formal target for (headline) PCE inflation. Consensus expects an unchanged reading of 1.7% yoy. Tuesday Jan 31st Taiwan GDP (Q4). We expect Taiwan's Q42011 real GDP growth to slow to 3.0% yoy, down from 3.4% yoy in Q32011 on the back of weak exports. Consensus is for 2.8% yoy growth. Korea Industrial Production (Dec). We expect industrial production to rebound given the strong exports in December. Flash GDP data for Q42011, however, suggests that services output was weak. Consensus expects 4.1% yoy growth, down from 5.6% yoy in November. Malaysia Central Bank Meeting. We expect Bank Negara Malaysia to keep the policy rate on hold at 3.00%. The Bloomberg consensus expectation is also for the policy rate to stay at 3.00%. US Chicago PMI (Jan). We expect a reading of 61.0, below consensus of 63.0 and down from December (62.2). Wednesday Feb 1st Korea CPI (Jan) We expect headline CPI inflation to rise sequentially on the Lunar New Year effect and increases in medical insurance fees, but to grow less than in January 2011. We expect inflation to decline below 4.0% yoy in January from 4.2% yoy in December. Consensus expects a reading of 3.6%. Korea Trade Balance (Jan) We expect January exports growth to slow to high-single digit compared to a year ago, given the weak 20-day exports data and the Lunar New Year effects. We also expect the trade balance to be in deficit on weak exports and seasonally-strong energy imports. Consensus expects export growth to slow to 1.2% yoy in January, down from a revised 10.8% in December. Global PMI's (Jan) Consensus expects China's official PMI to dip back below 50 in January, to a reading of 49.6 from a December reading of 50.3. Consensus for the final Euro zone PMI is for an unchanged reading of 48.7 from the flash release for January. US ISM (Jan) We expect the ISM manufacturing and nonmanufacturing indices to be roughly stable in January, reflecting ongoing moderate growth in economic activity. Our forecast is for 54.0 from 53.9 in December. Consensus expects 54.5. Thursday Feb 2nd France and Spain bond auctions US initial claims (Jan 28) Consensus expects a reading of 370k, against the previous reading of 377k. Friday Feb 3rd US Nonfarm Payrolls (Jan) We expect a reading of 125k, below consensus which is at 150k, and down from 200k in December. We expect the unemployment rate to remain unchanged at 8.5%, in line with consensus US ISM Non-manufacturing (Jan) We expect a reading of 53.0, below consensus of 53.3 but up from the December reading of 52.6.
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| Silver Update: 1/28/12 Junk Silver 2 Posted: 29 Jan 2012 12:15 PM PST |
| Posted: 29 Jan 2012 12:08 PM PST I figured out early in my career that arguing with the market more often than not ends up costing one money. If you are one of those people who are unable to change your mind, this business will almost certainly chew you up and spit you out. Never has that been more true than today. Folks, we are in the middle of an ongoing currency war. That is creating investing conditions unlike anything most of us have ever seen before. There's a reason why very few money managers have been able to make any profits over the last year and most of them have lost money. That reason is an ever-changing investing environment. As most of you probably already know my investing strategy is based around cycles, sentiment, a long-term bull market in precious metals, and a dash of technical analysis thrown in to help spot entry and exit points. Those tools give me a rough outline of what to expect going forward. I then placed my trades based on the best odds for success. However none of that excuses me of the responsibility to change my mind if the market tells me my expectations are wrong. It is precisely the ability to reverse direction 180° that enabled us to generate a 25% plus gain in the model portfolio during the last six months. This in a market that has confounded most professional money managers. And in an unleveraged portfolio, with never more than 75% of capital invested at any one time. I daresay on a risk-adjusted basis the SMT model portfolio has outperformed probably 99% of the money managers in the world. As an example let's use my recent expectation for 2012 to be one of the worst years in history. First off let me explain how I came to that assumption. To begin with the dollars three year cycle low was due to bottom in the spring of 2011. It actually did bottom in May of 2011. The stock markets four year cycle low is due to bottom in the fall of 2012. Since most bear markets tend to last about 1 1/2-2 1/2 years it was reasonable to expect that the next bear market would begin as the dollar started to rally out of its three year cycle low. Low and behold what happened in May as the dollar cycle bottomed? That's right the stock market started to collapse as deflationary forces began to push the dollar higher and asset prices down. Everything was unfolding exactly as our cycles tool had suggested it would.  However, in late November the markets started to deviate from our expectations. As the dollar continued to rally stocks began to decouple from the strong dollar. At this point one could either stubbornly hold on to their bearish outlook and lose money or, they could accept that the market was doing something different than what they expected, change their mind, and deal with reality as it is, instead of how they wished it to be. The fact that the S&P wasn't doing what it should have been doing was the main reason I've been warning (pleading really) with traders not to sell short. This market should have begun the move down into a daily cycle low two weeks ago. The fact that it refuses to move down into that over due correction is sending a strong message that something else is going on. The inability to change one's mind when the market tells you you are wrong, is one of the toughest habits to break, but one that is absolutely necessary if you are going to make money in this business. For whatever evolutionary reason, human beings have a very hard time admitting when they are wrong, and an even harder time reversing their thinking 180° even after they know they're wrong. For the vast majority of traders it is less painful to lose money than it is to admit an error and reverse a trade. In my previous post I went over my expectation for gold to move down into its daily cycle low along with the stock market. This should have corresponded with the dollar rallying out of its cycle low. On Wednesday morning everything was set up perfectly for this to unfold. Gold had formed a swing high and was beginning the move down into its daily cycle low, stocks were in the process of reversing back down through the coil, and the dollar had bounced off of the 50 day moving average and was holding strongly above support at 80, clearly in the process of putting in a cycle bottom.  However as you can see from the chart all of that changed Wednesday afternoon on the Fed statement. The stock market reversed the early-morning weakness, closing strongly. Gold reversed dramatically, closing up over $40, and the dollar collapsed back down through 80 negating what would have almost certainly been a powerful rally out of that cycle bottom. One could either ignore what had just happened and exacerbate losing trades, or they could recognize that something fundamentally changed that afternoon and quickly get on the right side of the market. That is exactly what we did. When the dollar reversed and gold started to rally we immediately bit the bullet on our long UUP trade, took a small loss, and reentered GDX. None of our tools (cycles, sentiment, or technicals) were predicting this. However, that still doesn't give us an excuse to ignore what had happened and quickly make the correct adjustment. Bernanke didn't actually confirm QE3 Wednesday afternoon, but the market obviously perceived the Fed statement as a guarantee that QE3 is in the works. That has the potential to break the dollar's rally out of its three year cycle low and derail the expected move by stocks down into a four year cycle low later this year. If Bernanke can break the dollar rally, and get the dollar moving south again there is no way we are going to experience a deflationary bear market this year. In that scenario 2012 would be the beginning of an inflationary period, culminating in a dollar crisis at the next three year cycle low, due in late 2014. If this is what is about to unfold then we need to alter our expectations from a deflationary bear market to an inflationary bull market. The four year cycle low for stocks, instead of occurring in late 2012 would probably get stretched out to late 2014. And the recession we should experience this year will be pushed out to 2013/2014 once inflation rises high enough to poison the economy. The big question now is; did Bernanke break the dollar rally? Confirmation will come once the dollar finds its daily cycle low, and if the rally out of that low fails to move to new highs and rolls over quickly forming a new pattern of lower lows and lower highs.  If this scenario plays out then we can jettison the deflationary bear market hypothesis and begin positioning for the inflationary scenario which should culminate with a dollar crisis in late 2014. This scenario also has the potential to drive the bubble phase of the gold bull market. A lot is riding on the dollar right now.       
This posting includes an audio/video/photo media file: Download Now |
| Exposing Silver Mythology, Part III Posted: 29 Jan 2012 12:07 PM PST by Jeff Nielson, Bullion Bulls Canada:
In Parts I and II, we were presented with a shocking perspective on the silver market. The principal record-keepers for the silver sector, and the largest single regulator of the silver market both display not only an abysmal level of ignorance concerning the silver market, but the seeming incapacity to even understand basic arithmetic operations. The result of this display of ineptitude is that the mainstream data and analysis which reaches the market from these official and quasi-official sources has absolutely no basis in reality. It is precisely this sort of vacuous nonsense which is relied upon by mainstream silver bears when they spew their negative drivel. And one cannot say the words "negative drivel" in connection with precious metals without immediately thinking of Kitco's Jon Nadler – the man who has gone through a 10+ year bull market for gold without ever once stating that today was a good day to buy it. Apparently his banker biases simply run too deep. Speaking of Nadler's biases, they were clearly on display in a recent hatchet-job on silver by the Globe & Mail which was so shoddy that it didn't even rank as good fiction. First the context: Read More @ BullionBullsCanada.com
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| Economic Collapse in the Western Nations – On the Edge with Max Keiser – 01-27-2012 Posted: 29 Jan 2012 12:03 PM PST |
| Posted: 29 Jan 2012 12:01 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Michael Pento: Gold Shines as West Continues to Destabilize the World Posted: 29 Jan 2012 11:57 AM PST from King World News:
Michael Pento continues: Read More @ KingWorldNews.com
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| Posted: 29 Jan 2012 10:44 AM PST On the 7-month chart for gold we can see that on Wednesday it broke out from the consolidation pattern that it has been stuck in since it peaked last August-September. This was a strong move on significantly increased turnover ... Read More...
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| Posted: 29 Jan 2012 10:43 AM PST An important reversal has now completed in silver and it is in the early stages of what promises to be a powerful uptrend that should take it comfortably to new highs. Read More...
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| Germany Frets As Bailouts And Risks Balloon Posted: 29 Jan 2012 10:43 AM PST
Wolf Richter www.testosteronepit.com In her speech at the Davos World Economic Forum, Chancellor Angela Merkel warned that Germany might be overwhelmed by its efforts to bail out the Eurozone. Germany must not make promises that in the end can't be kept, she said. It doesn't make sense to demand a doubling or tripling of Germany's contribution. "How long will that remain credible?" she asked. The government's reluctance has made Germany the favorite punching bag of the economic world, and most certainly of George Soros, who mused in Davos: "It's Germany that dictates European policy ... the trouble is that the austerity that Germany wants to impose will push Europe into a deflationary debt spiral." But every few months, the amounts to bail out Greece are rising. And it's not just Greece. Other countries are on life support as well. So the bailout mechanisms have become a bewildering and expanding array of direct and indirect contributions, commitments, and guarantees that, theoretically, all 17 member states of the Eurozone would share proportionately. But five of them—Portugal, Ireland, Italy, Greece, and Spain—are in trouble. So the remaining 12 have to shoulder their burden, and some of them are already teetering as well. Now all eyes are on Germany. CESIfo, the Munich-based economic research group that publishes the closely-followed Ifo Business Climate index, has put a pencil to Germany's maximum exposure over time. The report takes into account Germany 27.1% share of the ECB and 6% voting rights of the IMF. Total exposure: 635 billion ($831 billion), a whopping 27% of Germany's GDP. And it doesn't even include any bailouts within Germany. The details: - €22 billion for the first bailout package for Greece, agreed upon in May 2010. The Eurozone would contribute €80 billion, the IMF €30 billion—to be paid out in tranches. Germany's share is based on its share of the ECB (27.1%). - €1.8 billion for Germany's share (6%) of the IMF's €30 billion contribution to the package. - €12 billion for the European Financial Stability Mechanism (EFSM) of €60 billion, established in May 2010—based on Germany's 20% share of the EU budget. - €253 billion for the European Financial Stability Facility (EFSF), established in June 2010 and enlarged in October 2011 to €780 billion. Germany's share is 27.1%, or €211 billion. Also included is the 20% increase allowed under German law. - €15 billion for the IMF's €250 billion commitment to the EFSF. Germany's liability is based on its 6% voting rights of the IMF. - €94 billion for the ECB's purchases of sovereign bonds, now €219 billion. Germany's exposure is composed of two factors: its share of the ECB (27.1%) and its portion of the share of Portugal, Ireland, Italy, Greece, and Spain, which won't be able to fulfill their commitments to pay the ECB for losses. For a total of 43%. - €237 billion through "Target2." Target2 and its predecessor "Target" were a mundane part of the ECB's interbank payment system. The ECB would temporarily borrow money from the central bank of one country and lend it to the central bank of another. In 2008, however, as capital flight from periphery countries began, the credit flow became one-sided and ballooned with each new outbreak of the debt crisis. Thus, these ordinary credits became the first de facto bailout of crisis-struck countries. By November 2011, the credits that were extended to the central banks of Greece, Ireland, Portugal, Spain, and Italy amounted to €556 billion, according to Ifo. Germany's share of Target2 credits is based on its share of the ECB. Since Greece, Ireland, Portugal, Spain, and Italy won't be able to bear their share of any losses, the remaining 12 countries would have to bear them proportionately, giving Germany 43% in total exposure to Target2 credits. And so Merkel's question—"How long will that remain credible?"—has become a litmus test for Eurozone bailouts. But bailouts take on a life of their own. In September 2008, Treasury Secretary "Hank" Paulson walked into the Capitol and threatened that the whole world would collapse if his demands weren't met. Paulson's extortion worked. So, Greek prime ministers imitated him. And now Christine Lagarde, managing director at the IMF did it too—and hit the red line on the threat-o-meter. Read.... The Art Of Extortion: Now At The IMF.
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| Creative Destruction: US Bancorp Buys Failed Institution in TN Posted: 29 Jan 2012 09:08 AM PST "I want to be a Consumer Patrick Barrington On Friday the FDIC reminded us that the banking crisis continues, closing and selling several institutions in arranged transactions. This may seem gloomy news, but please note that the shareholders of the acquiring institutions just made a lot of money. Quietly, deliberately and without the aid of investment banks, several dead banks got sold for pennies on the dollar of assets by the FDIC's receivership. BankEast, Knoxville, Tennessee, was closed by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank National Association, Cincinnati, Ohio, to assume all of the deposits of BankEast. When the FDIC becomes receiver of a bank, the previous owner loses control. The parent bank holding company of BankEast may be forced into a restructuring and/or liquidation since it has lost the investment in the subsidiary bank as a result of the closure. The results of the estate of the dead BankEast will be visible on the FDIC web site at the link below: <http://www.fdic.gov/bank/individual/failed/bankeast.html> BankEast Corporation was rated "F" by The IRA Bank Monitor as of Q3 2011, with a Bank Stress Index ("BSI") score of 22.7 vs. the industry average of 1.7. Current period scores for Capital and Efficiency showed elevated stress, but defaults were below industry average levels. Even today, with the US banking sector recovering, loss rates as measured using data from the FDIC are running 3x the levels of 1995, the benchmark year of the BSI. The peak BSI score for the industry as a whole during the crisis was over 20 in Q4 2009. That is one reason why IRA still rates more than 1,100 banks "F" as of Q3 2011: <http://us1.institutionalriskanalytics.com/pub/IRAFactSheet.asp> As of September 30, 2011, BankEast had approximately $272.6 million in total assets and $268.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank National Association agreed to purchase essentially all of the assets, according to the FDIC. US Bank is the lead unit of US Bancorp (USB), which was rated "A" by The IRA Bank Monitor as of Q3 2011. The estimated loss to the FDIC on this resolution and sale is $75 million or about 30% of total assets, a rate which tracks the results seen so far in the crisis. Compared with the 11% loss rate seen during the S&L crisis in the 1980s, the loss rates on bank failures since 2007 are running about 3x that rate, a measure of the asset quality of many troubled banks. BankEast was rated "F" going back to the start of 2009, when default rates were running well above peer. In June 2010, for example, BankEast reported 720bp of default on an annualized basis, nose bleed levels of charge-offs above the 550bp peak losses of Citigroup ("C"), which was most recently rated "C" by The IRA Bank Monitor. You can read the ratings history of BankEast and other failed banks on IRA's Casuality List page of IRA Forensic Reports on Failed Banks Since January-2008: < http://us1.irabankratings.com/pub/Forensic.asp> At the time of closure by TN regulators, the estimated loss for BankEast was 160bp and the maximum probable loss in the Economic Capital model of The IRA Bank Monitor was 1,395bp, a measure of the instability of the bank's past loan loss results. By comparison, the MPL for Citigroup was just 890bp. In 2009, BankEast still had adequate capital, but by the time the bank reached the closure by the TN banking authorities last week reported capital levels were almost exhausted. The bank was essentially kept on ice until the FDIC was ready to close it and sell the assets and deposits in a brand new corporate vehicle to US Bank, which paid pennies on the dollar for the assets. US Bank states: "The acquisition of the banking operations of BankEast is structured as a whole bank purchase and assumption transaction without a loss share agreement. U.S. Bank conducted extensive credit due diligence, and purchased BankEast for an asset discount of approximately $67.5 million. The transaction is expected to exceed all internal hurdles for financial returns with conservative loan loss assumptions." < http://phx.corporate-ir.net/phoenix.zhtml?c=117565&=irol-newsArticle&ID... Sweet. Yet another accretive failed bank transaction for USB shareholders. Just remember while everyone is wringing their hands and running hither and yon, there are investors making big returns by purchasing the assets of failed banks.
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| Bock and Rickards Agree: Goverments Want Gold to Go Higher! Posted: 29 Jan 2012 09:05 AM PST James G. Rickards, author of the current best seller Currency Wars, is so informed and articulate that*he is almost scary in his clarity. He is the only person who essentially says what I have been*saying about the “hidden” intent of the US Treasury and Central Bank -*to deliberately weaken the US dollar and to cause price inflation, all in the interests of improving US competitiveness and to pay debt through financial repression. Ergo…they indirectly want and will cause the price of precious metals to escalate. Words: 398 So said Arnold Bock in a personal email to me today. [INDENT]Lorimer Wilson is editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). The views and conclusions of the email are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid cop...
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| Posted: 29 Jan 2012 08:03 AM PST And like that, this year's Davos World Economic Forum has come and gone, having achieved nothing except allowing a bunch of representatives of the status quo to feel even more self-righteous and important in the world's biggest annual circle jerk, in which fawning journalists ask the questions their cue cards demand, knowing too well their jobs are on the line if they ask anything even remotely provocative (and with the price of admission in the tens of thousands of dollars, one wonders just how many Excel classes these "journalists" could have taken as an alternative, in order to actually do some original math-based research, yes, shocking concept, to present to their readers instead of merely regurgitating others' talking points). Bloomberg TV has compiled the best video summary of the highly irrelevant soundbites by economists, CEOs and other people of transitory power, who provide absolutely no original insight into anything, and in which ironically it is Mexico's Felipe Calderon who summarizes it best: "we have a timebomb the bomb is in Europe and we are working together to deactivate it before it explodes over all of us." Lastly, we provide a quick glimpse into current and previous guests of Davos to show just how utterly worthless is the "braintrust" of those present. And some further persepctives, from Davos Sherman Okst of Psychopathic Economics: Economic NirvanaIt became quickly apparent that People are desperate to learn about Davos and what the elite are doing to "fix" the economy. Some "Search Terms" [my blog's trends] for this week: Davos attendees, Davos World Economic Forum attendees, Davos WEF list, Davos wants 150 trillion dollars, did Obama go to Davos, Joe Biden at Davos, Davos and the Greece default, WEF attendees, Bill Gross on Davos, Davos is a joke, Citi at Davos, Davos sluts, Economic Forum 2012 2600 participants bio, Davos world depression, Davos elite guest list, Fix economy at Davos. You get the idea. The terms in bold gave me an idea for an article. Some Bios of Those Who Attend DavosSo here is a short piece, the bios of some (past and present) elite over there at the Davos World Economic Forum. The guise is that they are there to make the economy and the world a better place. If that was the case, in one short sentence I could sum up a better way to do so: "Davos attendees, stay the [ehem] home—free markets are meant to be free for a reason—and if you want to fix the economy go to my blog and click on the 30 or so links there under Best Economic Blogs ". But when you read the bios you'll probably draw the conclusion that the elite go to Davos to serve their interest—not ours. Shocker, I know. Some Select Bios of Those at Davos This Year or Years Prior
Larry-"I Lost $1,800,000,000.00 for Harvard Betting on Derivatives"-Summers: He's got some other serious claims to fame, Obama is considering him for the top post at the World Bank, he helped Alan Greenspan muzzle Brooksley Born who wanted to regulate derivatives in the 1990s. You can watch that here. I wouldn't let Summers advise me on investing for my late dog. He must have been impressed with how Summers falls asleep at White House meetings. This year Larry is attacking "Capitalism" and says it needs to be reformed. We don't have capitalism, if we did the banks that made idiot decisions would have failed. We have Corporatcracy as I wrote about here and on this one site it got 145,000 reads which indicates that people–other than these morons at Davos–get this.
Jon-"I Bet 36,000 Clients' $1,200,000,000.00 on Greece MF"- Corzine. Don't feel too bad, he was going to be tapped for Timmy Geithner's job of United States Treasury Secretary. At Davos in 2008 he predicted a "mild recession." Then we have the companies.
BP Who drilled for 12 hours of global consumption under a mile of water and 3 additional miles of rock.
Citi 1.2 trillion in assets and 37.6 trillion in off balance sheet derivatives.
Deutche Bank Under fire from internal whistleblower for accusing bank of fudging numbers.
Ernst & Young accused of helping hide financial risks at Lehman Brothers, you can read about it here.
GE (Who Obama has as its head as his Council on Jobs) took money in bailouts, owns MSNBS and CNBS and GE Capital slashed about 11,000 jobs or 10% of its workforce, you can read about it here.
I could go on for hours, but I think that should help a lot of the folks stumbling across my blog looking for a complete list, which I published here.
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| Posted: 29 Jan 2012 06:02 AM PST Pento – Gold Shines as West Continues to Destabilize the World "The middle class was already on the endangered species list and now it's moved right to the top of that list. The reason the remnants of the middle class … Continue reading
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| Comex Silver Futures to Bullion Leverage Reaches 6.8 to 1 Posted: 29 Jan 2012 04:54 AM PST There are 49,436 contracts currently open for the next delivery month which is March 2012. Each contract represents 5,000 ounces. That is 247.18 million ounces of silver being traded for March delivery against a registered 36.56 million ounces. This is a subset of all the contracts going out over the year. The is leverage of about 6.8 to 1. It 'works' because most contracts are speculative and settled for cash. Comex is not where one goes for the delivery of a large amount of silver.
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| Iran Sanctions Conducive to Weak Dollar and Spiralling Gold Prices Posted: 29 Jan 2012 04:40 AM PST We are trying to figure out the best way to describe the banking and oil sanctions against Iran, which are blatant acts of war. Just look back in history at similar situations and you will see what we are referring too. It is simple incompetence or is the allied plan a false flag feint in order to distract attention away from debt problems?
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| Mike Kosares: Survivalist George Soros Posted: 29 Jan 2012 04:30 AM PST 12:29p ET Sunday, January 29, 2012 Dear Friend of GATA and Gold: Billionaire investor George Soros is supposed to have sold his gold exchange-traded fund holdings, but Mike Kosares of Centennial Precious Metals observes that amid the world financial crisis Soros sounds more than ever like a gold investor. Soros, Kosares writes, now "seems to have moved away from politics as a final recourse to the crisis and begun to think about the practical business of personally surviving it." Kosares' commentary is headlined "Survivalist George Soros" and it's posted at Centennial's Internet site, USAGold.com, here: http://www.usagold.com/cpmforum/2012/01/28/survivalist-george-soros/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Receives Inferred Gold Resource Estimate Company Press Release Golden Phoenix Minerals Inc. (OTC: GPXM) reports that on behalf of Golden Phoenix Panama S.A., the joint venture entity that owns and operates the Santa Rosa gold mine in Panama, it has received from SRK Consulting (U.S.) an initial resource estimate for Mina Santa Rosa. The Santa Rosa project is a volcanic-hosted epithermal gold-silver deposit previously operated as an open pit-heap leach operation. Production ceased in 1999 in part because of low gold prices. SRK Consulting reports an in-situ inferred resource at the former Santa Rosa and ADLM pits totaling 23.1 million metric tonnes at 0.90 grams/tonne gold, for a contained 669,000 ounces of gold at a 0.30 g/t gold cutoff. The resource also contains an average grade of 2.87 g/t silver for a contained 2.1 million ounces of silver. John Bolanos, Golden Phoenix's vice president of exploration, remarks: "In addition to SRK's inferred resource estimate of 669,000 contained ounces of For the company's full statement, including a table detailing the resources at Santa Rose, please visit: http://goldenphoenix.us/press-release/golden-phoenix-receives-initial-ni... Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing a silver commemorative coin: 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 Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Pento - Gold Shines as West Continues to Destabilize the World Posted: 29 Jan 2012 03:47 AM PST  Today Michael Pento told King World News real inflation is running as high as a staggering 9%, and continued inflationary Fed policies are going to wipe out what's left of the middle class in America. Pento, who founded Pento Portfolio Strategies, said the Fed is creating a bubble which is 10 times greater than the real estate bubble. Pento had this to say about the situation: "The middle class was already on the endangered species list and now it's moved right to the top of that list. The reason the remnants of the middle class face even more danger is the Fed is now guaranteeing minimum targets of decline in the purchasing power of the dollar each and every year."
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| Time to buy or sell silver or take a longer view? Posted: 29 Jan 2012 03:39 AM PST The ArabianMoney investment newsletter is a dedicated long-term holder of silver as an asset class, and anybody who has owned silver for three years has doubled their money. What other investment can say that? We think silver investors will do better than that over the next three years. Global money printing and a tight supply position for this precious metal should lead it to outperform gold. Is there any sign of an end to money printing? Hardly.
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| $140 Silver, Figures Don’t Lie Posted: 29 Jan 2012 03:02 AM PST Calls for $60, $75, $100 and $140 per ounce of silver by the close of 2012 may be very reasonable ones. Several well-known analysts have placed their bets already on each of these numbers. Sure, $140, a quadruple from today's … Continue reading
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| Lagarde: Euro Zone Needs Clear, Simple Firewall Posted: 29 Jan 2012 02:52 AM PST The euro zone needs a "clear, simple firewall" to restore international trust in it, International Monetary Fund Managing Director Christine Lagarde said Saturday. In a panel discussion at the World Economic Forum, Lagarde repeated her call for more fiscal stimulus from those countries in the euro zone with the capacity for it. "I can think of one or two," she said, in an oblique reference to Germany, which is set to bring its budget into balance by 2013, after strong growth in the last two years. She also repeated her call for more resources for the IMF, saying "no country is immune" from the contagion that the crisis in the euro zone could cause. On the same panel, U.K. Chancellor George Osborne agreed that "there is a case for more IMF resources," but didn't otherwise move beyond his government's position that the euro zone itself should first find the resources to deal with its problems. Mr. Osborne said the world should give the euro zone credit for all that it has achieved in the past two years, in terms of reducing budget deficits, creating the European Financial Stability Facility and introducing structural reforms. However, both warned that the region still has more to do. Mr. Osborne specifically pointed to the possibility of Greece destabilizing the rest of the region. "There is a risk of the tail wagging the dog," he said. Bank of Canada Governor Mark Carney, meanwhile, observed that although the level of bank capital around the world has risen substantially since the crisis, it has done so least in Europe. Hopes have risen this week that Greece will be able to conclude a voluntary debt restructuring with its private-sector creditors, cutting its overall debt burden by €100 billion. By Friday, the euro had risen to its highest level against the dollar in seven weeks. The Institute of International Finance, which is conducting negotiations on behalf of the creditors, said in a statement late Friday in Europe that the two sides still hadn't agreed on all terms of the deal. Source: The Wall Street Journal
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| “Golden Ben Bernanke” – Five Years Later Posted: 29 Jan 2012 02:09 AM PST In writing this week's issue of the Weekend Update for the investment site Iacono Research (BTW – a brand new combined blog/investment website is coming next month), I got to thinking again about how good Ben Bernanke has been for the gold price over the years and, in the process, found this item at the old blog that carried the following chart.
The funniest thing about it are the prices – only three digits with a lower scale of $280! I've long referred to the Fed Chief as "Golden Ben Bernanke" and, after last week's FOMC meeting and what it did for the gold price, it looks he'll cement that reputation this year.
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An economic nightmare is descending on Europe. With each passing month, the economic numbers across Europe get even worse. At this point it is becoming extremely difficult for anyone to deny that Europe is plunging into a full-blown economic depression. In fact, some parts of Europe are already there. In Spain the overall unemployment rate is over 22 percent, and in Greece one out of every five retail establishments has already been closed down. All over Europe, economic activity is rapidly slowing down, unemployment is skyrocketing and bad debts are unraveling. It isn't even going to take a default by a nation such as Greece or a collapse of the euro to push Europe into an economic depression. All Europe has to do is to stay on the exact path that it is on right now and it will get there. Normally, European governments would respond to an economic slowdown by increasing government spending. But this time most of them are already drowning in debt. Instead of increasing government spending, most governments in Europe are actually cutting back. All over Europe, national governments are being encouraged to implement even more tax increases and even more budget cuts. The hope is that all of this austerity will help solve the nightmarish sovereign debt crisis that Europe is facing. But unfortunately, all of these tax increases and budget cuts are also going to involve a tremendous amount of economic pain.
Did you know that the federal government is giving out free cell phones and free cell phone minutes to welfare recipients? It may be hard to believe, but it is true. Right now, there are companies that are running advertisements specifically targeted at low income Americans informing them of the fact that all they have to do is sign up and they can get a free cell phone and hundreds of free cell phone minutes every single month and it will all be paid for by the federal government. Some have referred to this as "The Obama Phone", but that is not exactly accurate. The outrageous federal programs that are paying for this were initiated before Barack Obama entered the White House. But the fact that welfare recipients have been receiving free cell phones and free cell phone minutes under both the Bush and Obama administrations has been confirmed as being true 
Today Michael Pento told King World News real inflation is running as high as a staggering 9%, and continued inflationary Fed policies are going to wipe out what's left of the middle class in America. Pento, who founded Pento Portfolio Strategies, said the Fed is creating a bubble which is 10 times greater than the real estate bubble. Pento had this to say about the situation: "The middle class was already on the endangered species list and now it's moved right to the top of that list. The reason the remnants of the middle class face even more danger is the Fed is now guaranteeing minimum targets of decline in the purchasing power of the dollar each and every year." 
Joe-"We asked Jon Corzine for Economic Advice"-Biden: Right after Obama & Biden got in the White house these economic imbeciles faced with a financial crisis called—drum roll please—MF Global's Jon-"I Bet My Clients' Money on Greece"-Corzine for advice on what do do. You can watch the short YouTube video 
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