Gold World News Flash |
- I have a theory
- Zero Hedge cites Fed's market rigging, China's dumping dollars for oil and gold
- Europe's Scariest Chart Just Got Scarier
- The Biggest Debt Write-Down In Human History
- THREE YEARS SINCE THE BOTTOM
- The Fed's Manipulation Of The Market Is Driving TrimTabs' Charles Biderman "Even More Nuts Than He Already Is"
- This Past Week in Gold
- The Black Swan NO ONE is Talking About: Germany’s “Plan B”
- Why China Is Dumping The Dollar - And Why You Should Read Up on the Weimar Republic
- David Kotok | Greece, Tragedy & Poetry
- The Ides of March
- Jordan Trendsman Interview March 9 2012
- Gold's Inflation Problem
- Plane-cast with a Patriot
- Do Gold and Silver Investors Believe QE Will Be Dialed Back?
- Chris Powell: Gold now defends not just liberty but simple reality
- China Posts Biggest Trade Deficit Since 1989 As Crude Imports Surge: Is China Recycling Export Dollars Solely Into Oil?
- Gold now defends not just liberty but simple reality
- Dollar Vigilante Podcast Ep. 7 with Phil Mackesy
- Alasdair Macleod: The Fed gets creative
- Metallwoche interviews Sinclair; Martenson interviews a gold dealer
- Neither Government Nor Media Care About America?s GROWING Deficits ? Here?s the Latest
- Financial Article Summaries of This Week?s 5 Most Popular
- “Mr. Gold” – Jim Sinclair – Exclusive on Metallwoche
- Grandich on Gold Interview
- Article posted at GoldMoney
- Exclusive – Gold Trader Gary Savage: “When Everyone Finally Throws in The Towel, Then We'll Move Higher”
- Golds Inflation Problem
| Posted: 10 Mar 2012 06:05 PM PST If the Gold bubble has already burst, would you not be loading up massively short on Gold and Silver?...
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| Zero Hedge cites Fed's market rigging, China's dumping dollars for oil and gold Posted: 10 Mar 2012 04:31 PM PST 12:25a ET Sunday, March 11, 2012 Dear Friend of GATA and Gold: Zero Hedge has a couple of especially important items tonight. One is commentary prefacing remarks by financial market letter writer Charles Biderman about stock market rigging by the Federal Reserve: http://www.zerohedge.com/news/feds-manipulation-market-driving-trimtabs-... The other deduces that China's foreign exchange policy now is to dump dollars and U.S. government debt for hard assets, particularly oil and gold: http://www.zerohedge.com/news/china-posts-biggest-trade-deficit-1989-cru... 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. Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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 A Rare Opportunity with Collectible Gold Coins Sovereign debt problems in the United States as well as Europe will worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection. But at Swiss America Trading Corp. we believe that it is no longer a luxury to own gold and silver coins but rather a necessity. At the moment the public is showing little interest in Double Eagle U.S. $20 gold coins, so the price premiums above the intrinsic melt values (.9675 ounce of gold in each coin) are historically low. The ratio of price to bullion content for these coins has been 2:1 but today it is only about 1.25:1. This is a real opportunity. So give us a call or e-mail and we will be glad to discuss the potential of these coins and how to use a ratio strategy to increase your gold ounces without money out of pocket. In the January edition of his Early Warning Report, Richard Maybury writes: "As they are inherently in very limited supply, I believe that high-quality numismatics will become tulips, eventually rising a thousand percent or more in real terms, when money velocity goes into mid-second stage. In late stage, who knows -- 2,000 percent? 3,000?" All inquiries will receive without charge (while supplies last) our latest book, "The Inflation Deception," as well as our newsletter "Real Money Perspectives." -- Tim Murphy, trmurphy@swissamerica.com -- Fred Goldstein, figoldstein@swissamerica.com Telephone: 1-800-289-2646 Swiss America Trading Corp., 15018 North Tatum Blvd., Phoenix, AZ 85032
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| Europe's Scariest Chart Just Got Scarier Posted: 10 Mar 2012 03:22 PM PST The last time we plotted European youth unemployment in what was dubbed "Europe's scariest chart" we were surprised to discover that when it comes to "Arab Spring inspiring" youth unemployment, Spain was actually worse off than even (now officially broke) Greece, whose young adult unemployment at the time was only just better compared to that... of the United States. Luckily, following the latest economic (yes, we laughed too) update from Greece, it is safe to say that things are back to normal, as Greek youth unemployment is officially the second one in Europe after Spain to surpass 50%. In other words, Europe's scariest chart just got even scarier.
And so while the Greek economy is in tatters, following another downward revision to its GDP as reported last week, this time dragging Q4 GDP from -7.0% to -7.5%, that's only the beginning, and it now appears that a terminal collapse of not just the Greek financial sector, but its society as well, has commenced, as the number of people unemployed in the 11 million person country is now 41% greater than its was a year ago. From Athens News:
When will the Greeks ask themselves if the complete and utter destruction of their society is worth it, just to pretend that life as a European colony is worth living. Especially now that pension funds have been vaporized?
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| The Biggest Debt Write-Down In Human History Posted: 10 Mar 2012 02:32 PM PST via TVR: In case they didn't cover it in your weekly programming, the biggest debt write-down in human history occured on 3.9.12.
No need to worry, the ISDA, IMF, ECB, US Fed, Euro Zone Leaders and every other Frankenstein group have everything under control. Don't worry that they changed their minds more times than your wife changes shoes before coming to this "solution." This time they're sure. Sure this is going to be a huge benefit to the Greek people. Sure the triggering of CDS' in no threat to financial institutions and sure overall payouts will be around the $3.2B in net outstanding CDS contracts linked to Greece. And sure the exact level of payouts will be determined on March 19. I am sure not one of these sureties is accurate. The biggest debt writedown in history, will be followed-up with additional bailout funds being given to the money masters, I mean the poor people of Greece. It's for the children. IMF head, Christine Lagarde wants to contribute $36.4B from the IMF to the $169B upcoming bailout. Ms. Lagarde says this will be needed to avoid a disorderly default that could be destabilizing. I guess skyrocketing suicide rates and pleas from Greek parents to give their children up for adoption is considered stable. Their oppression reeks of their greed and disgrace. The restructuring will shave $138B off Greece's $487B debt. Non-elected Minister Lucas Papademos called the deal a "historic success". He continued, "For the first time, Greece is not adding debt but taking debt off the backs of its citizens." You'll have to forgive Papademon, like his friends, he often confuses the words debt and money. I'm sure he meant that they would be taking money off the backs of its citizens. Forget about the upcoming madness with Spain, Portugal, France and finally the US. Do you really think the "net" 3.2B CDS Greek exposure is the true liability? I'll help you with the answer. If they sold a couple hundred billion in fictitious insurance and immediately took the proceeds and levered them, say a 100x and dumped it on themselves, proclaiming, "It's raining!", do you think they will be able to cover the insurance claims now? I guess we'll find out if chopping off the head of a zombie bank can really kill them. Institutions Will Not Enter the Gold Market in Force Worth their weight in paper – It is my belief that financial institutions will not play a large role in this gold bull market until it is too late. I want to clarify that I am not referring to central banks or Sovereign Wealth Funds that are already some of the biggest players in this bull market, especially those in the East, like China. Rather, I am referring to the investment banks, securities firms, mutual fund and insurance companies. Comments like those made by Warren Buffet in this year's annual letter to Berkshire Hathaway shareholders are indicative of the feelings of many money managers and executives in the financial sector. Warren stated gold is an asset that is "forever unproductive" and that "it [gold] will never produce anything." The common belief is that gold is not an investment, but a speculation. This is because money managers don't understand gold or how to value it. More on how to value gold later.
The Manipulation of Markets Will Only Increase Until They Don't We have reached the point where manipulation (aka policies) by governments and government sponsored entities need to continuously increase to keep the debt-based monetary system from collapsing. Similar to the fictitious interest rates in the US Bond Markets, the gold and silver manipulations must continue until the last. No matter how you choose to store savings, you should understand the manipulations will continue until they cannot any longer. If you can understand how this will end, you will not only be able to handle the short-term volatility, but will see it as a gift. Like a thief in the night, the financial system's ship of fools will find their gold has been removed and they've thrown their silver away. How to Value Gold I believe James Turk has the best way to value gold. Keep in mind using this formula assumes that 5,000 years of history is not wrong and in fact gold is still money. I tend to put more faith in 5,000 years of human behavior than digits on my computer. James determines "fair value" by dividing Central Bank Foreign Exchange Reserves by Central Bank Gold Reserves. Using this calculation, the "fair value" of gold is over $11,000/oz and rising. How high's the water Mama? $1,700 and rising. Gold Oil Ratio (GOR) Last week I mentioned that the price of oil was dropping versus gold, as I would expect in either a hyperinflationary or hyperdeflationary depression that coincides with a financial collapse. In 2005, the GOR was 6.6 barrels of oil/oz of gold. Today, the price of oil has dropped to about 16 barrels/oz. That means I can buy almost 2 ½ times the amount of oil for the same amount of gold. The historical norm is between 15-20 barrels/oz – so we are around the historical average now. I know about peak oil and peak everything theories. Whether peak oil is true or not, it's going to feel like peak oil if your savings is in USDs. Rising Taxes With budget deficits running completely out of control, new and existing taxes are going to be levied on the public. We have new taxes for ObamaCare and the potential for the Bush tax cuts to expire in 2013. All told, 41 separate tax provisions are set to expire this year, ranging from personal to estate taxes. In addition, there has been a 2013 proposal that could reduce the tax benefit of employee deferrals into a qualified retirement plan for certain high income individuals. We're talking 401Ks and the like. The proposal would tax deferrals at a rate that is the difference between the employee's tax rate for ordinary income and 28%. It is unclear whether this proposal will gain traction, but what is clear is the direction of future taxation to support ever growing debts. No matter how high existing taxes go or how many new taxes are implemented; there is no way to cover the shortfalls. John Williams of SGS noted that even if the US were to tax 100% of all wages and corporate profits, they could still not cover the bill. Unfortunately, this won't stop them from trying. The whole debate about who should pay what, is a perfect example of how the conversation is being directed. We are following their script without ever questioning why. How in the world are we ever going to pay them what they demand if they keep taking it out at a faster rate? Catherine Austin Fitts put it best by saying, "A negative economy is like having a hole in the milk bucket; it's time we fixed the hole and filled up the bucket!" I'm not just talking about a little waste. I'm referring to the outright theft by those with access and power.
There are many holes in the bucket. A few examples include: 1) Federal housing programs like the FHA and HUD – Time Magazine exposed a scandal at the FHA where real estate speculators used the program to make huge profits at the expense of the poor. Builders pocket millions of profits from mortgage loans that far exceeded the cost of construction. These programs allow the government to write bank checks to those involved in the contracts. In the 1980's it was disclosed that senior HUD staff used their positions for personal gain and when they left their positions they used inside contacts to win subsidies and new contracts. In 1981 Sam Pierce became Secretary of HUD under Ronald Reagan. After leaving his office, the US Office of the Independent Counsel and US Congress investigated mismanagement and abuse stemming from political favoritism. Through the 1990s many of Pierce's closest aides were charged and convicted of felonies for inappropriate expenditures, but Pierce himself was not charged. HUD provides about $8B a year to public housing authorities (PHAs). In 2006, The Miami Herald ran a series exposing the following examples of fraud and corruption: • The PHA gave developers and nonprofit groups with political connections millions of dollars to build affordable housing, but they ended up building shoddy houses or no houses at all. • HUD gave the PHA $35 million to tear down dilapidated public housing and replace it with new affordable housing. Six years later, half the money was gone and only three houses had been built. • Instead of selling new houses to low-income buyers, the PHA allowed developers to make sales to wealthy investors who then "flipped" them for a profit. 2) Medicare and Medicaid – Theft in these two federal health programs range well into the 100's of billions annually. Malcolm Sparrow of Harvard University, a top specialist in health care fraud thinks it's likely that between $200-500B/year is lost to fraud (theft) between these two programs. 3) Food Stamps – $1.7B/year lost to fraud 4) School Lunches – $1.4B/year lost to fraud 5) Supplemental Social Security – $4.6B/year lost to fraud 6) Unemployment Insurance – $4B/year lost to fraud 7) Temporary Assistance for Needy Families – $1.7B/year lost to fraud And if we wanted to get belligerent, we could mention the Wachovia money laundering scam using funds from the Mexican (CIA) drug cartel. To be fair to Wachovia, they were fined 1/3rd of a cent for each dollar laundered.
General Smedley Butler, two-time recipient of the Congressional Medal of Honor put it best: "War is just a racket. A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses." The US taxpayer is funding global military operations in a big way. We have over 700 military bases in 130 different countries. The reported military budget for the US is $700B/year. More than the top 14 countries (excluding the US) combined. Including off-the-books war costs, the annual US military spending is estimated to be about $1.25T. To add insult to injury, Secretary of Defense Donald Rumsfeld publicly stated on September 10, 2001 that "According to some estimates we cannot track $2.3 trillion in transactions." There's a hole in the bucket and it's getting bigger. It's a massive gaping hole of fraud and abuse, waste of hard-earned tax dollars, corporate exploitation, criminal-predatory lending and governmental tyranny. Deceit masked in thousand page bills. There's a hole in the bucket and we need to fix it.
Market Thoughts
Think of the market as a man walking on a tightrope with each arm tied to a team of horses. On one arm are the natural forces of deflation, on the other are the unholy forces of central bank intervention. The horses pull harder with each passing day, making it ever more difficult for the man to balance himself. As he wobbles with volatility, the crowd wonders which team of horses will succumb. Some betting on hyperinflation, others on hyperdeflation. All seeming to understand the man must fall eventually. Given the collapse in inevitable, CBs will ensure it's not a deflationary collapse. They've already stated this and back-stopping banking deposits alone will require full-speed printing (FDIC is broke too). Collapse due to a deflationary spiral is a certainty, while printing is more profitable for those in control and postpones the day of reckoning the longest, if they can just keep their team of horses in equilibrium with the
On the interventionist team, the US Fed is supplying an unlimited amount of dollars to the world via the dollar swap agreements. On Nov. 30, 2011, the world's G6 central banks (the Federal Reserve, the Bank of England, the Bank of Japan, the European Central Bank [ECB], the Swiss National Bank, and the Bank of Canada) announced "coordinated actions to enhance their capacity to provide liquidity support to the global financial system". Under this agreement, The US Fed will offer unlimited amounts of US dollars to other central banks at the US dollar overnight index swap rate (OIS) plus 50 basis points (about 1%). These freshly printed dollars are being lent to the CBs respective banks, so that withdrawals and debt payments can be met. These swaps are, and will continue to be offered with no limitation until at least Feb 1, 2013. Near-Term Market Movements The US trade gap for December widened to a record $52.5B. More importantly, we have the Greek CDS' and incredible debt financing to deal with this month. You know what we need to solve this nagging issue of insolvency? More credit! Or debt, or money, or whatever they call that digital and paper shit they are so good at creating. The "pushers" will probably make you
God Bless, ~David Freedom Click for the supplemental editorial audio.
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| Posted: 10 Mar 2012 02:15 PM PST Interesting chart comparing the price increases of various items since March 9, 2009. A couple of additional items might be of interest: Silver is up 155% since March 9, 2009 Overall food prices are up 35% since March 9, 2009 Beef prices are up 72% since March 9, 2009 Gasoline prices are up 132% since [...]
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| Posted: 10 Mar 2012 01:37 PM PST Back in 2009 and 2010, TrimTabs Charles Biderman made waves for being the first person on prime time financial TV to tell it how it is, namely that the Fed is indirectly and directly affecting asset prices. Then he was ostracized. Now, it is not only a given that the Fed does everything in its power to hike stock prices, but is in fact welcome. Indeed, none other than Bob Pisani made point of highlighting that between central bank intervention and kicking the can down the road, the status quo has managed to restore credibility in the system. Of course, nothing could be further from the truth, as we have demonstrated with the now terminal evacuation of faith by the retail investor in the gross manipulated stock "market" which is nothing but a nominal policy vehicle for politicians and bankers. Unfortunately, the endless lies and propaganda are starting to push rational people who refuse to take the blue pill, and who are fully aware there is no wizard, over the edge. In his latest videoblog, Biderman is back, taking his Lewis Black impersonation to the next level, with the following rant: "Individuals are net sellers of US equities and have been for years, probably because they need to pay bills and stuff. So how are they able to do that and get decent prices without the stock market cracking. Well simple the Federal Reserve has been printing huge amounts of money and that ultimately has been boosting the value of US equities, and therefore the sellers can sell. All of this is driving me even more nuts than I already am." Alas, judging by how seemingly normal people act and behave recently, those to whom every fraudulent action of the Fed is clear as daylight, Biderman's reaction is not unique, and more and more people have been brought to the edge of a full mental collapse as the lies upon lies upon propaganda merely pile up, with nothing ever being fixed (listen to the second part of Biderman's rant for more on that), and with virtually limitless risk now swept under the rug, and onboarded by the world's central banks, in a sequence that can only have one outcome: an end of the monetary system as we know it, at the point where no more risk transfer can take place. Luckily, since we are now in the exponential phase of consolidated central bank balance sheet expansion, the wait will not be very long
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| Posted: 10 Mar 2012 01:32 PM PST Summary: Long term - on major buy signal. Short term - on sell signals. Our positions were stopped out, and shall now wait for the cycle to bottom before taking on new positions. Read More...
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| The Black Swan NO ONE is Talking About: Germany’s “Plan B” Posted: 10 Mar 2012 12:53 PM PST While the Second Greek Bailout may or may not be complete (depending on whether we get a credit event as a result of it), Germany can and will walk from the Euro if it needs to. This is the unforeseen black swan everyone is ignoring.
Obviously, Germany wouldn’t want to do this as it would result in Germany being blamed for the Euro failing. So thus far, “Plan A” for Germany has been to offer bailout funds that are contingent on requirements so unpalatable that Greece or any other PIIG would likely end up preferring to walk rather than submit to them.
Case in point, before the second Greek Bailout German Finance Minister Wolfgang Schäuble proposed that Greece should postpone its April elections as part of the bailout package.
In simple terms, Schäuble is concerned that the unpopularity of the austerity measures being imposed on Greece as part of the second bailout package would lead to a “wrong” democratic choice.
Let that last paragraph sink in for a moment; it’s so outlandish it’s hard to even comprehend. Imagine if a Chinese official suggested the US put off its elections otherwise China would dump US Treasuries en masse and you’ll see what I mean.
Understand, Schäuble is no idiot. He knows that there is no way Greece would go for this. So his comment can only be seen as an attempt to incite a Greek backlash while also winning political points in Germany.
Indeed, those who show themselves willing to play hardball with Greece have seen a huge boost in the polls (Merkel recently saw her approval ratings hit their highest levels since her re-election by doing this). Schäuble is obviously taking a page from her playbook here.
We should also take Schäuble’s statements in the context of Angela Merkel’s recent backing of Nicolas Sarkozy’s re-election campaign in France against hardened socialist François Hollande, who wants to engage in a rampant socialist mission to lower France’s retirement age, cut tax breaks to the wealthy, and break the recent new EU fiscal requirements Germany convinced 17 members of the EU to agree to.
Current polls show Hollande winning the election if it goes to a second round. The fact that Sarkozy’s re-election campaign just kicked off with an MP from his party announcing that the Nazis never deported homosexuals from France to Germany during the Holocaust (hardly a statement that boosts Sarkozy’s chances of re-election) isn’t helping.
Put another way, German leaders, particularly Merkel and Schäuble see the writing on the political wall: that both Greece and France are likely going to find themselves with new leadership that is pro-socialism, anti-austerity measures, and most certainly anti-taking orders from Germany.
Thus, Germany must be aware (as the EU, IMF, and ECB are to some degree) that it is ultimately fighting a losing battle by participating in the bailouts. Indeed, Schäuble has even gone so far as to recently call Greece a “bottomless pit” where money is wasted (having just participated in Greek bailouts that exceed the entirety of Greece’s GDP, he does have a point here).
Schäuble’s statements have not passed unnoticed by the Greeks. Greek politicians have regularly brought up Germany’s lack of war reparations to Greece post-WWII while the Greek media has begun regularly portraying Schäuble and Angela Merkel as Nazis.
So while a “deal” may have officially been struck for Greece, there are deep underlying tensions that could bring the EU to a crashing halt at any point.
Big picture, we must remember that Greece is just the opening act for what’s to come in Europe: Italy and Spain are waiting in the wings to take center stage as soon as the Greece bailout deal is finalized (if this happens… which remains to be seen).
Having seen how ineffective the whole “hand over fiscal sovereignty in exchange for more, cheaper debt/ bailouts” deals have been for Greece, Spain’s already told the EU to “shove” its budgetary requirements. This kind of political tension will be growing between EU members in the coming months as Ireland, Portugal, Spain and Italy all start showing their hands at the EU poker table.
Germany is aware of this, as well as the fact that there is no way German voters will go for bailouts of any more of the PIIGS (even if Germany, the IMF, and ECB had the funds to bail out Spain or Italy… which they don’t). This is why Germany has decided to play hardball with Greece. It’s also why Germany has put into place a contingency plan that would permit it to leave the Euro if it had to.
What is Germany’s “Plan B”? Leave the Euro but remain in the EU (maybe).
If you don’t believe me, consider that in the last six months Germany has:
It is the second of these items (the reinstatement of the SoFFIN) that the western media and 99% of investors have missed entirely. In short, Germany has given the SoFFIN:
That is correct. Any German bank, if it so chooses, will have the option to dump its EU sovereign bonds into the SoFFIN during a Crisis.
In simple terms, Germany has put a €480 billion firewall around its banks. It can literally pull out of the Euro any time it wants to. The question is whether its current EU power grab is successful. If it isn’t… and other EU nations refuse to play ball (like Spain has started to) then Germany could very easily leave the Euro.
This is the black swan no one is talking about. If Germany bails on the Euro, the EU will collapse. It will be Lehman Brothers times 10 if not worse.
I recently published a report showing investors how to prepare for this. It’s called Surviving a Crisis Four Times Worse Than 2008 and it’s chock full of information on how to not only survive but thrive during if this particular black swan (or any of the others lurking in the system) comes to pass.
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Good Investing!
Graham Summers
PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
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| Why China Is Dumping The Dollar - And Why You Should Read Up on the Weimar Republic Posted: 10 Mar 2012 12:47 PM PST As ZH posted today, China is systematically dumping the dollar (and beginning to set up other agreements). CNBC assures everyone, however, that things are fine. Don't read those anonymous financial blogs. China has a long way to go in turning itself into more of a consumption based economy, so the dumping of USD has to be rather gradual (as to not rock the boat too much, the U.S. still needs to be supplied the funds to purchase Chinese goods, and also most trades are settled in USD for now), but it is happening. One major reason for this action by China is due to the fact that the United States Government has loaded up on so much debt that it's not possibly sustainable - and the Federal Reserve knows that unless they want to see the house of cards the Keynesians have built come crashing down, they have no choice but to completely monetize the debt. As the dollar continues to be devalued (more in a second), the more yuan China has to print in order to buy dollars to keep their fx target. So not only is China on the hook to pay higher commodity prices (priced in dollars), they're stuck with creating more dometic inflation as well - which is something they don't have time to deal with at the moment, as their housing market is on the verge of collapsing. Today ZH also pointed out that Greece has $107B of hidden liabilities that oops, they forgot to disclose to anyone. Which made me think, hey, how about the unfunded & if not hidden, largely swept under the rug liabilities the United States has. Alas, the Treasury doesn't use GAAP accounting when they put out their debt figures, they us cash accounting. This means that all of the social programs we have in place (medicare, pensions, social security, etc) is left out of the debt calculation. China is not stupid, they realize that not only are we going to be 100% of GDP soon on our reported debt, we're going to be well over 100% of GDP on total debt if we are being honest & including our unfunded liabilities. Over $80 Trillion in debt, or over 500% of GDP, accordng to Shadow Stats John Williams. Here is a chart showing our Gross Debt to GDP, along with Total Debt to GDP if we were being honest (via John Williams, Shadow Stats)
That's pretty isn't it? So what options does that leave the Federal Reserve if they want to continue the global ponzi? You guessed it, monetize the debt, all of it. And as the Fed buys over 100% of the net treasury offerings, the Dollar begins to lose even more purchasing power. This is what puts China in a tough spot, for reasons mentioned above. And Yes, Monetize the Fed Will:
So, as you can see this is the house of cards we're dealing with right now. China is not being fooled, and they will inevitably leave the dollar behind at some point in the future. Which means less buyers for US Debt, which means more money printing by the fed, and dollar devaluation - you see where we're going here. As this cycle picks up steam, we can expect more inflation than we're already seeing (be it "core" calculated by the Government, or "real" calculated by Shadow Stats). Here is a nice chart showing how happy we can be that the A. The Federal Reserve was put in place to facilitate this ponzi, and B. That we went off the Gold standard
Pretty soon we can start using money that looks like this -- I reserve the right to be the Battleship.
And finally, the Federal Reserve would like to let the Congress, and the American public know, that no matter what Zero Hedge says about them, they will "not monetize the debt"!
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| David Kotok | Greece, Tragedy & Poetry Posted: 10 Mar 2012 11:57 AM PST Latest from David Kotok at Cumberland Advisers <http://www.cumber.com/commentary.aspx?file=031012.asp>-- Chris
Greece, Tragedy & Poetry David Kotok, Chairman & Chief Investment Officer "PETRUCHIO. Signior Hortensio, 'twixt such friends as we?Few words suffice; and therefore, if thou know One rich enough to be Petruchio's wife, As wealth is burden of my wooing dance,?Be she as foul as was Florentius' love, As old as Sibyl, and as curst and shrewd As Socrates' Xanthippe or a worse, She moves me not, or not removes, at least, Affection's edge in me, were she as rough As are the swelling Adriatic seas: I come to wive it wealthily in Padua; If wealthily, then happily in Padua." – William Shakespeare, The Taming of the Shrew Metaphors: Padua is the center of wealth in money terms, so it equates to the European Central Bank (ECB) under the leadership of Mario Draghi. Sibyl is the Greek prophetess. In modern times, Sibyl represents the forecasters who have predicted doom, financial contagion, and collapse for the last several years as the Greek debt tragedy unfolded. Xanthippe was the wife of Socrates. He demonstrated patience with her biting tongue, to his eventual benefit. Modern-day Xanthippes have crowded the media and blogosphere with nastiness. Critical thinking, in accordance with the Socratic method, prevailed for those investors who did not panic but were cool and disciplined. Florent was a knight who was forced to marry an older and wiser woman. She ultimately saved him. Florentius' wife is ISDA, the International Swaps and Derivatives Association, who showed their integrity by ruling unanimously (15 voters) that Greece did default and that $3.16bn in credit default swaps (CDS) must be settled. Petruchio is the suitor motivated by greed. In the end, he learns the value of honor, love, and integrity. Is Petruchio the metaphor for Greek unions and civil servants who have been profligate spenders and who have squandered the benefits of the Eurozone's convergence and integration? Does their greed culminate in generational poverty for their countrymen? Time will tell. What may investors learn from the Greek debt tragedy? Bullets: 1. Do not trust any government. Nothing new here. This Greek government invoked the collective action clause (CAC). It retroactively inserted provisions in a debt contract and then imposed them. No sovereign-debt contract is now immune from the same action. All sovereign-debt contracts will carry a risk premium. Buyers of European sovereign debt now act at their own peril. 2. Central bankers ignore Walter Bagehot when they choose to do so. Whatever happened to lending against "good collateral"? Also, central bankers (ECB) are complicit parties to the establishment of a government class and an "all-other" class when it comes to the security provision in sovereign-debt instruments. 3. Legal jurisdictions are important. The Magna Carta is nearly a millennium old. It divided the Western world into those who are descendants under Roman law and those who are the descendants of English law. Greeks and other Europeans are in the Roman law camp, which empowers the state at the expense of the individual. English law attempts to protect the individual from the state. The tension between these two systems continues to the present day. Notice the different treatment of the majority of debt holders under Greek law vs. the minority of debt holders under non-Greek law. Investors who venture out of English law are invited to take note of the risk. 4. Under non-Greek law, ISDA functioned and did the "right thing." ISDA validated the insidious nature of the CAC. It also did the only thing it could do. Otherwise, the entire CDS structure would collapse. For the full voting record and determinations under ISDA, see: http://www.isda.org/dc/docs/EMEA_Determinations_Committee_Decision_09032... Europe's saga of debt tragedy is not over. Portugal's spread to German debt is 1200 basis points. In Spain the youth unemployment rate is about 35%. Belgium's debt/GDP ratio is over 100%. Italy is the world's third largest debtor; its debt/GDP ratio is 120%. Much of Europe is in recession. And European sovereigns will borrow now with the world knowing what can happen to a debt holder. At Cumberland, we did not own and we will not own debt where a legal system can rewrite a contract, unless disputes (bankruptcy) can be adjudicated by a neutral court. We avoid debt of government structures that create a two-tiered system of "haves and have nots." That is why we avoided Fannie Mae preferred. We still believe in English law and American courts. If we lose those, we are all doomed. As for the Greeks, they are headed for a period of sleeping on the "bed of straw." They will have to get used to it. That forecast is not from the words of Xanthippe, nor the words of Sibyl. These are the words of an American poet. Wendell Berry wrote: "By its own logic, greed Please feel free to forward our commentaries (with proper attribution) to others who may be interested. For a list of all equity recommendations for the past year, please contact Therese Pantalione at 856-692-6690,ext. 315. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance. All material presented is compiled from sources believed to be reliable. However, accuracy cannot be guaranteed.
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| Posted: 10 Mar 2012 09:52 AM PST Under the current financial debt and economic conditions we are all familiar with, increases in the price of gold and silver will be significant and substantial over time. But those ultimate values are still unknown due to a number of variables. Improvements in gold and silver prices are always in steps and considerable patience needs to be exercised while waiting for the next surge or price achievement to occur. Cheerleader predictions about moon shots without supporting evidence should be regarded as mere speculation. You will not find blue sky predictions here, only clear, credible and convincing evidence. Again, the primary purpose for buying gold or silver is for preservation, protection and profit as well as survival from the destruction of paper money. It's just that simple. [CENTER] Key Points of Interest [/CENTER] Specifically, technical conditions in gold/silver and the XAU indicate a resting and retracement phase in the daily and weekly time frames, as outlined b...
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| Jordan Trendsman Interview March 9 2012 Posted: 10 Mar 2012 09:30 AM PST from WallStForMainSt: In this approximately 30 minute interview, Jason Burack of Wall St for Main St, LLC interviews CMT (Chartered Market Technician) and editor of The Daily Gold newsletter and website, Jordan "Trendsman" Roy-Byrne. Jordan talks about if he thinks the major indexes are having a bear market rally/dead cat bounce/sucker's rally or if Ben Bernanke has financially engineered a new nominal bull market with cheap money and stimulus after the market crash in 2009. Jordan also talks about his technical and fundamental views of the oil market as well as Gold and Silver. Jordan also gives us his opinion on where Gold is heading along with the mining stocks.
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| Posted: 10 Mar 2012 09:00 AM PST Gold goes up with inflation. Except when it goes up regardless... EVERYBODY'S fretting about inflation. Central bankers say there's too little, or will be (just you wait). Lesser mortals feel there's way more than the official numbers let on. And finance professionals think there's a lot more ahead.
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| Posted: 10 Mar 2012 08:46 AM PST by SGT:
Mike is a married man with children and a wife who is dubious about all of this collapse talk. And she has an aversion to the thought of buying silver and gold in particular. I wish I could play my "podcast on a plane" right now because it was a gripping conversation with this total stranger. And it just goes to show how many people, from different walks of life in the U.S. are "waking up" in their own way, and one by one. Unfortunately – and I'm super bummed about this – the voice memo somehow deleted itself from my iPhone. It was there. I know for a fact it recorded because Mike and I both listened to portions of it off of my phone when the interview was complete. But when I got home two days later, it's was gone. Poof! Auto-deleted, and I can't get it back. Mike and I talked in detail about the coming economic collapse, it's causes and why he's worried about it. Mike was not familiar with the Federal Reserve System and the Central Bank fiat money machines which have enslaved the world. So we talked a great deal about the true causes of inflation and the decline of America. I shared the physical precious metals story with Mike in detail. And I told him just about everything a person might need to know about the extraordinary opportunity that physical silver represents, so he that he could talk about this wonderful "insurance policy" with his wife once he returned home.
So to Mike, I'm sorry I can't post our interview, I was really looking forward to sharing it. So basically I'm writing this for three reasons: 1.) People are waking up all around us, they just need some help understanding the big picture of how we got here. 2.) I want Mike to know why our interview isn't being posted today as I promised. 3.) So Mike and everyone else understands 'the big picture' of precious metals manipulation, I'm re-posting my micro-doc 'The Curious Case for $936 Silver'. We're all in this fiat currency, massive debt debacle together.
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| Do Gold and Silver Investors Believe QE Will Be Dialed Back? Posted: 10 Mar 2012 08:45 AM PST After two days of consecutive gains, gold and silver briefly dipped into the red after Friday’s job report. The Labor Department’s monthly report said the United States economy added 227,000 jobs in February, compared to expectations of 213,000. Furthermore, hiring in January and December were better than previously thought. Those figures were revised to show 61,000 additional jobs. The economy has generated an average of 245,000 new jobs in each of the last three months.
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| Chris Powell: Gold now defends not just liberty but simple reality Posted: 10 Mar 2012 07:02 AM PST 2:57p ET Saturday, March 10, 2012 Dear Friend of GATA and Gold: GATA can't vouch for the data published in the latest edition of Alan M. Newman's financial letter, Crosscurrents, which argues that financial manipulation has become the main pursuit of the United States economy, but he is far from alone in his observations. Commentary about this trend arose around 20 years ago, perhaps first in The New Republic magazine. And there is a well-established entry about it at Wikipedia, the Internet encyclopedia, here: http://en.wikipedia.org/wiki/Financialization Newman writes that dollar trading volume (presumably in U.S. markets) now is more than four times larger than the U.S. gross domestic product as well as four times larger than total stock market capitalization. "The churn continues at the most ferocious pace, making a mockery of our capital markets," Newman writes. "The theme of investing for the future is now meaningless as high-frequency trading distorts price discovery, resulting in gross pricing inefficiencies." ... Dispatch continues below ... ADVERTISEMENT Golden Phoenix Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://goldenphoenix.us/fox-business-network/ This echoes what GATA board member Adrian Douglas, publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com), often has written about the gold and silver markets particularly -- that paper trading is scores of times greater the actual metal traded and, perhaps more important, scores of times greater than actual metal available for delivery. This means, as you've heard from this quarter before, that there are no markets anymore, just interventions (http://www.gata.org/node/6242), with the virtually infinite amounts of money necessary for manipulation being delivered by central banks to the monster financial houses that act as their agents both officially and openly as well as unofficially and surreptitiously. And yet we too may be faulted for paying such close attention to it. Yes, these manipulations supply the main cues for all asset and consumer prices, but now that "trillion" has become a commonly accepted term, the economy's connection to reality itself is being lost. For as Zimbabwe discovered recently and as Weimar Germany discovered 90 years ago, when it comes to human affairs, "trillion" exists only in the imagination, if there. It is incomprehensible. The digits that flash on our computer screens every day are now mostly just the reflections of holograms concocted by machines. These machines may not yet have taken over the world in the much-feared moment of "singularity," catapulting us all into the losing side of some Arnold Schwarzenegger movie, but as Newman notes they could turn on their masters at any time. You know all the old philosophical arguments in favor of gold and silver as an independent form of money -- human liberty, limited government, and so forth. But an equally compelling argument now may be the defense of simple reality. In the end monetary metal in your hand is at least something. Hurl it hard enough at an arrogant central banker, a parasitic fund manager, or a sleeping market regulator and it would sting a bit. However the precious metals are to be priced, holding them as money is a way of rejecting and defying the holograms and the creators of infinite money. Having had plenty of horrible experience with infinite money, the American Founders knew all this and so insisted on commodity money. But their descendants lacked such experience, and so it came to seem primitive to let the money supply be determined by how much metal could be pried out of the ground each year. Indeed, it is primitive. It just has turned out that more sophisticated money becomes, perhaps inevitably, too sophisticated, and the result is far worse than primitive -- predatory, corrupt, totalitarian, and unreal. Alan Newman's letter, headlined "A Mockery of the Capital Markets," is posted at the Crosscurrents Internet site here: http://www.cross-currents.net/charts.htm CHRIS POWELL, Secretary/Treasurer Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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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| Posted: 10 Mar 2012 06:51 AM PST In addition to all the US election year propaganda and delayed after effects of central banks injecting nearly $3 trillion in liquidity to juice up the US stock market, something far more notable yet underreported has happened in 2012: the world stopped exporting. Observe the following sequence of very recent headlines: "Japan trade deficit hits record", "Australia Records First Trade Deficit in 11 Months on 8% Plunge in Exports", "Brazil Posts First Monthly Trade Deficit in 12 Months " then of course this: "[US] Trade deficit hits 3-year record imbalance", and finally, as of late last night, we get the following stunning headline: "China Has Biggest Trade Shortfall Since 1989 on Europe Turmoil." Here we must apologize, but blaming the highest trade deficit in 23 years for a country that needs a trade surplus to exist, on the Chinese Lunar new year, which accidentally happens every year, is more than a little naive. Because as the charts below indicate, while exports did in fact tumble in a seasonal pattern as they do every February although more than expected, February imports of $146 billion not only did not drop, but posted a 19% increase compared to January, and soared 40% compared to a year prior. Why? Perhaps the second consecutive record high in monthly crude imports has something to do with it. Which in turn when considering the huge selloff of US Treasury paper by China in the last few months, indicates that the world's fastest growing economy no longer has an interest in taking its export dollars and using them to fund purchases of US paper, but is in fact converting US fiat into real, hard goods. Such as crude (for all those curious where the marginal demand is coming from that is). And most likely gold. But we will only learn about the gold hoarding well after the fact, when China is prepared to see the price of the metal soar as it did in 2009. In the meantime, what is truly scary is that for the first time ever, virtually every major economic block in the world is importing (how that is possible in a closed loop system is a different question entirely). There is hope of course that Europe will be a net exporter (courtesy of the drop in the EURUSD which led an export surge in the only economy in Europe that actually makes things, Germany) when Eurostat announces January numbers in a few days, although if past is prologue and the December EU27 trade balance of a whopping €1.7 billion is any indication, we probably should not get our hopes up too high. While we wait, without further ado, here are some truly stunning charts showing the epic collapse in the Chinese economy, which while still experiencing intermittent flashes of inflation, will have no choice but to resume easing all over again, in the process sending all commodity prices higher yet again. China total imports and exports - whoosh:
China trade balance by region - whoosh:
China trade with the US - whoosh:
China trade with the EU - whoooooooooooooooooosh:
However, definitely no whoosh here:
Here's a thought why not:
Oh, and lets not forget this particular whoosh:
...Is it starting to make sense now?
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| Gold now defends not just liberty but simple reality Posted: 10 Mar 2012 06:47 AM PST 2:57p ET Saturday, March 10, 2012 Dear Friend of GATA and Gold: GATA can't vouch for the data published in the latest edition of Alan M. Newman's financial letter, Crosscurrents, which argues that financial manipulation has become the main pursuit of the United States economy, but he is far from alone in his observations. Commentary about this trend arose around 20 years ago, perhaps first in The New Republic magazine. And there is a well-established entry about it at Wikipedia, the Internet encyclopedia, here: http://en.wikipedia.org/wiki/Financialization Newman writes that dollar trading volume (presumably in U.S. markets) now is more than four times larger than the U.S. gross domestic product as well as four times larger than total stock market capitalization. "The churn continues at the most ferocious pace, making a mockery of our capital markets," Newman writes. "The theme of investing for the future is now meaningless as high-frequency trading distorts price discovery, resulting in gross pricing inefficiencies." ... Dispatch continues below ... ADVERTISEMENT Golden Phoenix Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://goldenphoenix.us/fox-business-network/ This echoes what GATA board member Adrian Douglas, publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com), often has written about the gold and silver markets particularly -- that paper trading is scores of times greater the actual metal traded and, perhaps more important, scores of times greater than actual metal available for delivery. This means, as you've heard from this quarter before, that there are no markets anymore, just interventions (http://www.gata.org/node/6242), with the virtually infinite amounts of money necessary for manipulation being delivered by central banks to the monster financial houses that act as their agents both officially and openly as well as unofficially and surreptitiously. And yet we too may be faulted for paying such close attention to it. Yes, these manipulations supply the main cues for all asset and consumer prices, but now that "trillion" has become a commonly accepted term, the economy's connection to reality itself is being lost. For as Zimbabwe discovered recently and as Weimar Germany discovered 90 years ago, when it comes to human affairs, "trillion" exists only in the imagination, if there. It is incomprehensible. The digits that flash on our computer screens every day are now mostly just the reflections of holograms concocted by machines. These machines may not yet have taken over the world in the much-feared moment of "singularity," catapulting us all into the losing side of some Arnold Schwarzenegger movie, but as Newman notes they could turn on their masters at any time. You know all the old philosophical arguments in favor of gold and silver as an independent form of money -- human liberty, limited government, and so forth. But an equally compelling argument now may be the defense of simple reality. In the end monetary metal in your hand is at least something. Hurl it hard enough at an arrogant central banker, a parasitic fund manager, or a sleeping market regulator and it would sting a bit. However the precious metals are to be priced, holding them as money is a way of rejecting and defying the holograms and the creators of infinite money. Having had plenty of horrible experience with infinite money, the American Founders knew all this and so insisted on commodity money. But their descendants lacked such experience, and so it came to seem primitive to let the money supply be determined by how much metal could be pried out of the ground each year. Indeed, it is primitive. It just has turned out that more sophisticated money becomes, perhaps inevitably, too sophisticated, and the result is far worse than primitive -- predatory, corrupt, totalitarian, and unreal. Alan Newman's letter, headlined "A Mockery of the Capital Markets," is posted at the Crosscurrents Internet site here: http://www.cross-currents.net/charts.htm CHRIS POWELL, Secretary/Treasurer Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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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| Dollar Vigilante Podcast Ep. 7 with Phil Mackesy Posted: 10 Mar 2012 06:34 AM PST | |
| Alasdair Macleod: The Fed gets creative Posted: 10 Mar 2012 05:51 AM PST 1:45p ET Saturday, March 10, 2012 Dear Friend of GATA and Gold: Economist and former banker Alasdair Macleod takes a look at the Federal Reserve's latest trial balloon and figures that the objective is to use bank credit rather than more "quantitative easing" to engender inflation. Macleod's commentary is headlined "The Fed Gets Creative" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/gold-research/alasdair-macleod/the-fed-gets-cre... CHRIS POWELL, Secretary/Treasurer 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. Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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 Golden Phoenix Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://goldenphoenix.us/fox-business-network/
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| Metallwoche interviews Sinclair; Martenson interviews a gold dealer Posted: 10 Mar 2012 05:36 AM PST 1:38p ET Saturday, March 10, 2012 Dear Friend of GATA and Gold: Interviewed by the German Internet site Metallwoche, trader and mining entrepreneur Jim Sinclair talks about the intervention by the U.S. government that was behind the recent smashing of the gold market. He says gold will challenge the critical resistance price again soon. He also notes international movement away from the use of the dollar as a trade settlement currency. Audio of the interview is posted at Metallwoche here: http://www.metallwoche.de/mr-gold-jim-sinclair-exclusive-on-metallwoche/ Meanwhile financial market analyst Chris Martenson interviews precious metals dealer Robert Mish about what a gold bubble looks like, which is nothing like what's happening now. That interview is posted at Martenson's Internet site here: http://www.chrismartenson.com/blog/robert-mish-front-line-evidence-nowhe... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT A Rare Opportunity with Collectible Gold Coins Sovereign debt problems in the United States as well as Europe will worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection. But at Swiss America Trading Corp. we believe that it is no longer a luxury to own gold and silver coins but rather a necessity. At the moment the public is showing little interest in Double Eagle U.S. $20 gold coins, so the price premiums above the intrinsic melt values (.9675 ounce of gold in each coin) are historically low. The ratio of price to bullion content for these coins has been 2:1 but today it is only about 1.25:1. This is a real opportunity. So give us a call or e-mail and we will be glad to discuss the potential of these coins and how to use a ratio strategy to increase your gold ounces without money out of pocket. In the January edition of his Early Warning Report, Richard Maybury writes: "As they are inherently in very limited supply, I believe that high-quality numismatics will become tulips, eventually rising a thousand percent or more in real terms, when money velocity goes into mid-second stage. In late stage, who knows -- 2,000 percent? 3,000?" All inquiries will receive without charge (while supplies last) our latest book, "The Inflation Deception," as well as our newsletter "Real Money Perspectives." -- Tim Murphy, trmurphy@swissamerica.com -- Fred Goldstein, figoldstein@swissamerica.com Telephone: 1-800-289-2646 Swiss America Trading Corp., 15018 North Tatum Blvd., Phoenix, AZ 85032 Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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 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.
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| Neither Government Nor Media Care About America?s GROWING Deficits ? Here?s the Latest Posted: 10 Mar 2012 04:42 AM PST Does anyone believe the government cares about deficits? Does the American media care? If they do, why don't you read reports like the following? Words: 970 So asks Monty Pelerin ([url]www.economicnoise.com[/url]) in a report* that Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) presents below for your enlightenment. Pelerin goes on to provide an excerpt from The Washington Post which was one of the few news outlets to report that: [LIST] [*]The federal government recorded its worst monthly deficit in history in February, according to a preliminary report Wednesday from the Congressional Budget Office that said the deficit in fiscal year 2012 is already more than half a trillion dollars. [*]The CBO's figures show that despite repeated efforts to trim spending, the government has borrowed 42 cents of every dollar it spent during the first five months of this fiscal year. [*]The nonpartisan agency projected the government will run a deficit of $229 billion in Feb...
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| Financial Article Summaries of This Week?s 5 Most Popular Posted: 10 Mar 2012 04:42 AM PST We all live extremely busy lives and often fail to keep up with the most informative articles posted on the internet. The editor of*munKNEE.com searches the internet for such articles and posts the best in an edited and abridged format daily for the sake of clarity and brevity to ensure a fast and easy read. Below are links, with introductory paragraphs, to the 5 most popular for this past week in descending order. You're busy so save time by just reading those that interest you most and Sign-up for Automatic Receipt of Articles as they get posted on munKNEE.com – Your Key to Making Money! Words: 1150 Here are the*5 most read articles: 1. James Turk: Here's the Real Reason the Gov't Confiscated Gold in 1933 FDR confiscated American's gold for the same reason Lenin confiscated it in Russia and Hitler confiscated it in Germany, namely, to get it out of the hands of the people. [That view is contrary to the prevailing belief that such was done] to re-establish confidence in the dolla...
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| “Mr. Gold” – Jim Sinclair – Exclusive on Metallwoche Posted: 10 Mar 2012 01:00 AM PST **Courtesy of Metallwoche.de** Dear CIGAs, What only a few have realised so far… It is a great pleasure for us to have once again Jim Sinclair in our show on Metallwoche again. „Mister Gold himself" with 50 years of experience as a trader and investorhas a very straight view when it comes to financial Continue reading "Mr. Gold" – Jim Sinclair – Exclusive on Metallwoche
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| Posted: 10 Mar 2012 12:50 AM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! March 10, 2012 05:23 AM Listen [url]http://www.grandich.com/[/url] grandich.com...
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| Posted: 09 Mar 2012 10:08 PM PST This article is posted at GoldMoney, here. The Fed gets creative2012-MAR-10
 The deal the Fed appears to be thinking of is a reverse-repurchase agreement (a reverse repo), whereby it buys long-maturity bonds financed by credit drawn from the commercial banks. The important monetary distinction is that unused bank credit funds the deal, not hard cash. The Fed can always set the terms so that it is an attractive proposition for its counterparties. This being the case, upward pressure on short-term rates will be minimal while the Fed can manage long-term rates lower. And by buying bonds with long maturities, asset prices generally benefit which is why stocks rose on the story. More intriguing are the reasons why this option might be being explored. The answer is probably found in the rising yields of longer maturities, illustrated by the US 30 year Treasury yield shown below:
There are two underlying motives that come to mind other than just bolstering asset prices. Firstly, on balance central bankers are still worried about a possible deflationary collapse, and while there may be early signs of economic recovery, commercial banks remain risk-averse when it comes to lending. Also low mortgage rates are seen as vital to the housing market, which is still mired in its own debt-deflation: this is why the Fed might want to buy mortgage debt as well as Treasuries. Secondly, there is the cost of government borrowing, and any rise in interest rates wrecks budget deficit assumptions. These are already alarming enough. Furthermore, US Treasury debt maturities are skewed heavily and dangerously towards the short-term: hence the importance of keeping long-term bond yields low, so that the Treasury can issue longer-dated bonds. To summarise, the Fed is still trying to avoid deflation and it needs to assist the Treasury by buying long-term debt at artificially low bond yields. Growing public concerns about the inflationary effects of quantitative easing calls for a different approach, perhaps using reverse-repos funded by an expansion of bank credit. While this might satisfy some, all that happens is that the engine of monetary inflation becomes expanding bank credit, rather than quantitative easing: the long-term effects on prices are exactly the same. Tags: central banks, Fed, inflation, interest rates, quantitative easing Alasdair Macleod 
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| Posted: 09 Mar 2012 09:15 PM PST
When asked about the current technical charts on gold, Gary said, "I think what's happened is gold has begun what I call a B-wave correction…that builds another base for the next C-wave advance. I think we've kind of started that choppy whipsawing type of consolidation phase, and I really don't expect it to end until probably next spring."
In relation to the U.S. dollar, Gary indicated it may be moving into a secular bull market. "When I look at the charts without my bias, the May 2011 3-year cycle low held above the 2008 cycle low. The 200 week moving average is turning up for the first time in twelve years. So if I'm This was another outstanding interview with one of the world's most successful gold traders, and is required listening for investors looking to profitably trade the gold bull market. To listen to the interview, click the following link and/or save to to your desktop: Interview also posted on our YouTube Channel To learn more about Gary and The Smart Money Tracker visit: Smart Money Tracker Enjoy the interview? Please support the site by joining our Free Mailing List and sharing this URL page link with friends, family, and your favorite chat forum. Thanks,
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| Posted: 09 Mar 2012 06:29 PM PST Bullion Vault
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SDA Announces a Credit Event Has Occurred
Gold doesn't pay a dividend and doesn't generate easy transaction or administrative costs. Many investment managers I work with don't even consider gold an asset. The whole system is built so that each component works together – they facilitate deals, offer services and issue and sell paper for profit. It's a symbiotic relationship between all groups that will not be broken. Gold is not part of their business model. It is for this reason that I believe institutions will not be large players in the gold market and will ultimately be severely impacted by the dollar collapse. The coming currency collapse will destroy the entire financial system. They are a ship of fools sailing off a cliff.
There's a Hole in the Bucket
The hole gets bigger yet. We've got to pay for their military. And I mean "their" military. The American people are not asking to drop more bombs, they are being told. It's a complicated agenda that we wouldn't understand, so they have to choose for us. It's for our own good of course. If it wasn't already clear, they like to give you a second serving. In June 2011, The White House told Congress and America why it didn't need their approval for military action in Libya. It was because it wasn't a war – they should just say it's because "we say so".
Walking a Tightrope
ask nicely, but not too worry, the doctor's here and he's got his syringe ready. The new injection will have its desired affect – junky affect. I'm expecting a continued downward movement in the world's stock markets through the end of March and into early April. Any attempts at rallying will be met with new fears over the expanding debt tsunami. It'll be plenty choppy – the risk is on the downside. I wouldn't be caught shorting stocks, but I consider any allocation risky. PMs and commodities will move much higher beginning in April. $2000 gold and $50 silver by July.
This was supposed to be a posting of a 25-minute interview with a very nice middle 40′s aged U.S. military Veteran and patriot named Mike. On a plane of more than 100 people, we just happened to get seated next to each other. I noticed almost immediately that he was reading James Wesley Rawles book Patriots: a novel of survival in the coming collapse. So I told him "We may have a lot in common", and we began talking. 
I had the great opportunity once again to speak with technical gold trader Gary Savage. Gary publishes the "Smart Money Tracker," which is a daily market commentary and active portfolio trading service. I've been following Gary's daily work for a long time, and with respect to investment timing—I've haven't seen any other trading services beat his performance and value. With that said, interviewing Gary again was a lot of fun.
Commenting further on the correction Gary said, "It's like the bigger the consolidation is, once the breakout occurs, the further it goes[subsequent up-leg]…we need a good long consolidation that frustrates everybody where they finally throw in the towel, and then when they do, then we'll get the next move up in the bull market—and the next one might take us to $4,000oz."
just looking at the charts, it looks like the dollar may have entered a secular bull market—maybe not against commodities, but against other currencies it may be entering a secular bull market."| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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