Gold World News Flash |
- Gold?s Current Bull Market Will Be Even Bigger Than The One In The 1970s ? Here?s Why
- Gold Stocks Ready to Rise?
- Surging central bank gold demand adds new dimension to bull market
- The Fed's Currency Swap Covert Bailout of the Eurozone
- Bernanke, The Professor Who Did NOT Save the World
- Gold Remarkable Reversal on Euro Jitters Flight to Safety
- Norcini - Take That Gold Shorts as Massive Bids Shock Market
- The Siren - An Early Warning System for Economic Risk ...
- Gold Not Giving Up without a Fight
- Gold Seeker Closing Report: Gold Gains While Dow Drops
- Rob Kirby: Blythe Masters lays an egg
- Comex Registered Silver Inventory Falls Below 30 Million Ounces Again
- Mike Kosares: Surging central bank gold demand will guide bull market
- The Hard Working American vs. The Government Parasite
- Silver Update 4/10/12 Metals Decouple
- Strong bids for gold 'came out of nowhere,' Norcini tells King World News
- Gold Headed for Three Consecutive Lower Monthly Closes?
- Is The Treasury's Imminent Launch Of Floaters The Signal To Get Out Of Dodge?
- Blockbuster Full Time Employment Growth, But An Intractable Long Term Crisis
- Gold Daily and Silver Weekly Charts – Remarkable Flight to Safety on Euro Jitters
- Spanish 10 yr yields rise to 5.98% / Italian bank stocks halted down 8.5% / Ted Butler on the Ice Queen
- Brink’s Adjusts 1.5 Million Oz of Silver out of Registered-Vaults: Registered Falls Under 30 M Oz
- Site Down Again and a Chart Update
- Truth Versus Obfuscation
- A Return to the Gold Standard, or Gold Behind Currencies – Part 1/5
- “Casino Jack” Abramoff breaks down how Government is Sold to the Highest Bidder
- Stocks Plunge On Rare Equity-Gold Decoupling
- What's keeping the gold shares down, and what can we do about it?
- China?s New Gold Exchange Will Be Good for Gold Investors and Bad for the U.S. Dollar ? Here?s Why
| Gold?s Current Bull Market Will Be Even Bigger Than The One In The 1970s ? Here?s Why Posted: 10 Apr 2012 05:51 PM PDT The fundamentals supporting a mania in gold and gold stocks are such that*I think a strong case can be made [to support my contention] *that the current bull market in gold is far stronger than the one from the 1970s. [I present below] the major observations I feel…support such a thesis. Words: So says Simit Patel ([url]www.informedtrades.com[/url]) in*edited excerpts from his original article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited below for length and clarity – see Editor's Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement. Patel*goes on to say, in part: According to Dow Theory, secular bull markets have three phases: [*]slow appreciation of insiders and professionals; [*]more rapid appreciation, mainstream media coverage, and an increase in mass market investors; [*]a parabolic mania. As the chart below illustrates, a case can be made that gold is ab...
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| Posted: 10 Apr 2012 05:35 PM PDT The Gold Speculator
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| Surging central bank gold demand adds new dimension to bull market Posted: 10 Apr 2012 05:31 PM PDT USA Gold
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| The Fed's Currency Swap Covert Bailout of the Eurozone Posted: 10 Apr 2012 05:29 PM PDT On Tuesday, March 26, 2012, I was invited by Ron Paul and his staff to assist a meeting of the Domestic Monetary Policy and Technology Subcommittee of the House Committee on Financial Services. The title of the hearing was "Federal Reserve Aid to the Eurozone: Its Impact on the U.S. and the Dollar." Unfortunately, Ben Bernanke had not come to the hearing, being busy with propaganda lectures in favor of the Fed. Instead, two of his colleagues, Mr. William C. Dudley (president and chief executive officer, Federal Reserve Bank of New York) and Dr. Steven B. Kamin (director, Division of International Finance, Board of Governors of the Federal Reserve System), showed up to answer the committee's questions on currency swaps with other central banks.
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| Bernanke, The Professor Who Did NOT Save the World Posted: 10 Apr 2012 05:21 PM PDT "The Fed's efforts prevented a 'total meltdown' of the financial system at a time when fears of a second Great Depression were 'very real,' Mr. Bernanke said Tuesday at the third of his four lectures at George Washington University in Washington." - Wall Street Journal, "'Fed Prevented Total Meltdown,' Bernanke Said," March 28, 2012.
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| Gold Remarkable Reversal on Euro Jitters Flight to Safety Posted: 10 Apr 2012 05:10 PM PDT There was a remarkable intra-day reversal in gold as stocks slumped hard on fresh European debt jitters of the Italian and Spanish variety. This divergence was probably a flight to safety, as gold soared but silver lagged.
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| Norcini - Take That Gold Shorts as Massive Bids Shock Market Posted: 10 Apr 2012 04:02 PM PDT  Today legendary Jim Sinclair's chartist, Dan Norcini, told King World News that fresh gold shorts suffered large losses in yesterday's trading. Norcini said massive bids came into the market as gold crossed $1,640, volume spiked and the shorts were squeezed. Norcini stated the buying which came into the market was intense, and caught many market participants off guard. Here is how Norcini described the gold shorts getting mauled: "The move in gold seemingly came out of nowhere yesterday. Gold had been down earlier in the session when a huge bid came into gold at the $1,640 level and that took out the shorts at $1,645."
This posting includes an audio/video/photo media file: Download Now |
| The Siren - An Early Warning System for Economic Risk ... Posted: 10 Apr 2012 04:01 PM PDT  ... is a simple idea (or our first shot at it). Collect real-time information from economic forecasters with superb track record and present it all in one place. Automated, dependable, free information feeds. What made us consider something like this?We felt that the mainstream media didn't give citizens any warning before the bursting of the housing bubble. Millions of people lost a significant part of their retirement savings in the financial meltdown that followed. Indeed, out of over 1 million stories published between 2000 and mid-2007 in major economic media such as the The Wall Street Journal, The New York Times, the Los Angeles Times, The Washington Post, Bloomberg News, Financial Times, Fortune, Business Week and Forbes, only 700 stories (out of over 1 million!) could be considered a warning before the financial crisis that was coming. These were „corks bobbing on a news Niagara", to quote Dean Starkman, the auhor of the study. It was terryfing to find out that you absolutely can't rely on the traditional media to help you prepare for important events in the future. So, it sparked our quest for more reliable sources of future-relevant information. These sources - the Voices of the Siren - should meet the following criteria: Read more........ 
This posting includes an audio/video/photo media file: Download Now |
| Gold Not Giving Up without a Fight Posted: 10 Apr 2012 04:00 PM PDT courtesy of DailyFX.com April 10, 2012 01:31 PM Weekly Bars Prepared by Jamie Saettele, CMT Focus remains on early year pivots at 1600/10. Price is testing a long term trendline that extends off of the 2008, 2010, and December 2011 lows. A break of such a well-defined trendline would signal a significant shift. Today’s advance has challenged resistance from the 4/2 low (former support). The downside is favored below the April high of 1683.35. Bottom Line (next 5 days) – lower...
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| Gold Seeker Closing Report: Gold Gains While Dow Drops Posted: 10 Apr 2012 04:00 PM PDT Gold rose to as high as $1653.82 in Asia before it fall all the way back to $1631.92 by about 11AM EST, but it then shot back higher midday and ended near its early afternoon high of $1662.90 with a gain of 1.08%. Silver climbed to $31.83 before it dropped back to $31.161, but it also rallied back higher in late trade and ended with a gain of 0.73%.
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| Rob Kirby: Blythe Masters lays an egg Posted: 10 Apr 2012 03:40 PM PDT 11:34p ET Tuesday, April 10, 2012 Dear Friend of GATA and Gold (and Silver): GATA consultant Rob Kirby of Kirby Analytics in Toronto today rebuts JPMorganChase commodity chief Blythe Masters' assertion on CNBC last week that the investment bank isn't rigging markets but just hedging positions for clients. Kirby notes data from the U.S. Office of the Controller of the Currency indicating that there are no "end users" for the trillions in derivatives issued by the bank, data suggesting that the bank's real client is the U.S. government. Kirby's commentary is headlined "Blythe Masters Lays an Egg" and it's posted at the Kirby Analytics Internet site here: http://www.kirbyanalytics.com/ 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://www.goldenphoenix.us/company-videos.html
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| Comex Registered Silver Inventory Falls Below 30 Million Ounces Again Posted: 10 Apr 2012 03:38 PM PDT |
| Mike Kosares: Surging central bank gold demand will guide bull market Posted: 10 Apr 2012 03:32 PM PDT 11:28p ET Tuesday, April 10, 2012 Dear Friend of GATA and Gold: Centennial Precious Metals proprietor Michael Kosares writes today that gold's future is likely to be secured most by the change in central bank attitudes toward the monetary metal. While they were recently big sellers, Kosares notes, central banks are now net buyers, with China likely taking the lead. Kosares' commentary is headlined "Surging Central Bank Gold Demand Adds New Dimension to Bull Market" and it's posted at Centennial's Internet site, USAGold.com, here: http://www.usagold.com/publications/Newsletter042012_Surging.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf Our source is quite clear on one thing: The move on NGF is just the beginning. China wants more gold and it doesn't want to pay full market price for it (as it doesn't for any mineral) so it will be looking to pick up more Australian gold producers and add the yellow metal to its existing central bank gold pile. Not something the Perth Mint will be happy to hear. Chinese interests took control last year at Laverton-area goldminer A1 Minerals, now renamed Stone Resources after its Hong Kong parent. That parent took an unsuccessful lunge also at Crescent Gold. Last year a Chinese consortium spent $US79 million on a 17.7 per cent holding in Gold One International. Chinese interests spent $80 million to buy the controlling stake in Australian-owned Zara gold project in Eritrea and Yunnan Tin owns 12.3 per cent of YTC Resources, which is developing the Hera goldmine near Cobar in New South Wales. And Sovereign Gold, which featured here two weeks ago for uncovering long lost shafts on the Rocky River-Uralla goldfield in northern NSW, has subsequently signed up partner Jiangsu Geology & Engineering to pay $4 million to buy 30 per cent of two tenements. 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 Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and -- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities. -- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending. -- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated. For the complete announcement, please visit Prophecy Platinum's Internet site here: http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major...
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| The Hard Working American vs. The Government Parasite Posted: 10 Apr 2012 03:30 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Silver Update 4/10/12 Metals Decouple Posted: 10 Apr 2012 03:29 PM PDT |
| Strong bids for gold 'came out of nowhere,' Norcini tells King World News Posted: 10 Apr 2012 03:24 PM PDT 11:22p ET Tuesday, April 10, 2012 Dear Friend of GATA and Gold: Futures market analyst Dan Norcini, interviewed today by King World News, marvels at the sudden trouncing administered to gold shorts today. Strong bids for the metal "came out of nowhere," Norcini says. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/11_No... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and diversified pipeline of platinum nickel projects, including: -- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities. -- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending. -- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated. For the complete announcement, please visit Prophecy Platinum's Internet site here: http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major... 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 Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| Gold Headed for Three Consecutive Lower Monthly Closes? Posted: 10 Apr 2012 03:02 PM PDT • If so, it will be the first time in this gold bull market. HOUSTON –From the Chart Book. It has been a terrible April for small mining shares, big mining shares and to a lesser extent gold and silver. Recently we have seen some of our colleagues throwing in the towel figuratively speaking, with some cutting back on exposure to gold-related positions and some cutting them entirely. With that as a setup, we thought we would share one interesting long-term graph for gold. It is the long term monthly chart shown below, somewhat reduced from its original size. Gold, since 2002, monthly.
One thing we point out on the graph is that since the Great Gold Bull began in 2002 gold has finished lower in two consecutive months 13 times, but has yet to finish lower for three consecutive months - on a monthly closing basis. Gold only has to close below USD $1,668.60 on April 30 for this to be the first period of 3-consecutive months of lower closes. Using a monthly chart can be very useful. Monthly charts contain a great deal less "noise" found in weekly or daily charts and they are a good way to view longer term trends. The chart above is currently suggesting this might be the first time since 2002 gold has fallen for three consecutive monthly closes – but it has done that before – probably enough times to equal a baker's dozen. On another note, Vultures (Got Gold Report Subscribers) be sure to log in and review the linked technical charts for new commentary from time to time. In particular, note new commentary in the GDXJ chart for Tuesday, April 10. We have also made new comments in a number of the Vulture Bargain Candidates of Interest (VBCI) charts as well as added two new companies in the last week. As always the frist place to check for new commentary is directly in the dialog boxes in the charts themselves. That is all, carry on.
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| Is The Treasury's Imminent Launch Of Floaters The Signal To Get Out Of Dodge? Posted: 10 Apr 2012 02:47 PM PDT Today, our favorite IMF economist, and arguably one of the few people who sees the big picture, Manmohan Singh issued a paper titled "Money and Collateral", which, not surprisingly, deals with the issues of money and collateral. And while it provides an interesting read, we can jump to the conclusion which is, not surprisingly, that there is simply not enough collateral within the global financial system, which in turn inhibits the proper intermediation of banks in traditional monetary conduits (due to the need for central banks to intervene in the place of traditional banks and shadow banking entities), which keeps the money multiplier low. We have extensively covered the issue of collateral scarcity and encumbrance previously (read: "Encumbrance 101, Or Why Europe Is Running Out Of Assets", "No Record Profits For Old Assets: Jim Montier On Unsustainable Parabolic Margin Expansion For Dummies", "A Few Quick Reminders Why NOTHING Has Been Fixed In Europe (And Why LTRO 3 Is Not Coming)", "How The Fed's Visible Hand Is Forcing Corporate Cash Mismanagement") so the paper's conclusion should not come as a surprise: until cash is used to replenish a diminishing, cash-poor asset base, nothing can change. Unfortunately, in the ultimate Catch 22, under central planning companies are disincentivized from investing cash into CapEx and organic growth, and instead are spending it on M&A and dividends, the two worst decisions management can take over the long run. It was one of the tangential "boxes" in the Singh paper titled "Floating Rate Note "puts"—are they forthcoming?" that caught our attention because it reminded us that in all the distraction over the past 3 months, we had forgotten that probably the most important event of 2012 is about to take place, and it has nothing to do with Europe, or with a central bank's balance sheet. Namely: the imminent arrival of Floating Rate Note Treasurys, or Floaters. In reality, while we noted this very curious development before (here and here), we did not think too much into what the Treasury may be signalling. Which was a mistake, because if Singh is correct, the US Treasury may be telegraphing to the world that it, or far more importantly, the TBAC, is quietly preparing for a surge in interest rates. Which as everyone and the kitchen sink knows, is THE black swan event (or gray for you taleb purists). But before we go there, let's take a tangent of our own to a point in history 61 years prior, known simply as The Accord of 1951. Here is how Wikipedia summarizes this footnote in history, which the Fed, the Treasury and any US administration would be delighted to have never been made public.
Few things to note here:
He hope this little incident that nobody talks about puts everything we live through nowadays with the Fed, and its endless appetite for US paper, in a far more comprehensible light. Yet while entertaining, this historical incident also teaches us about the future, and what may be imminent. Here is Manmohan Singh:
Bingo: "prevent capital losses" by way of the modern version of 1951's Treasury puts. In a day and age, i.e., now, when investors generate the bulk of their wealth from capital appreciation (thank you ZIRP), and in which capital losses would be the deathknell for a US market in which the bulk of consumer and non-financial cash is already invested in the capital markets (recall "This Is Where The Developed World's Households Have Invested Their Money"), capital losses within the one asset that has been a cash magnet ever since the Second Great Depression, would be devastating. How devastating? Simple bond math: since a bond's yield is determined by its fixed cash coupon and its price, in an environment of rising interest rates (especially on the short-end which are duration magnified exponentially by the time they reach the long end) when the coupon can not be changed (or is 'fixed' as stated), the price of the bond has to drop to keep the yield rising. A good example are the new Greek 10 Year bonds, which because of their ~4% cash coupon, and 20% yield demanded by the market, are trading at just about 20 cents on the dollar. Needless to say an 80% capital loss on the 10 Year Treasury would be cataclysmic for all those who believe their money is "safe." Also for America, and for modern capitalism. So what is a Treasury to do? Well, unfix the fixed portion, or the cash coupon, so that rapid moves in interest rates are absorbed not by the capital loss to keep the yield higher, but by a spike in the variable interest margin over Libor. That way even if the Fed were to lose control of both the long and the short end, capital losses would be minimized, something of absolutely critical value in a society transfixed with capital preservation. In other words, the market under the guise of the TBAC will provide the instrument, or product, that will be best suited to buffer a surge in interest rates. Ironically, the very act of rolling out this product is thus the alarm bell that higher rates are a-comin'. This is how Singh sees the current comparable event, the imminent launch of FRNs, as comparable to the bond swap of the 1951 Accord:
What is also obvious is that if the TBAC is quietly shifting the market into preparation mode for "a steady (or rocky) rise in rates from near zero to a "neutral" fed funds rate of 400 bps and a "normal" 5 percent yield on 2 year U.S. Treasuries" as the IMF warns, then all hell is about to break loose in stocks, as by now everyone is aware that without the Fed liquidity, and not just liquidity, but "flow" or constant injection of liquidity, as opposed to merely "stock", VIX will explode, equities will implode, and all hell would break loose. It is not yet certain if the TBAC will proceed with implementing FRNs. Although, since the proposal came from the TBAC, read Goldman and JPM, and what Goldman and JPM want, they get, it is almost certain that in about a month, concurrent with the next quarterly refunding, America will slowly but surely proceed with adopting Floaters.
As a reminder, this is what Treasury's Mary Miller said earlier:
What happens once we get Floating Treasurys nobody knows. But if 1951 is a precedent, when the unstoppable force of central planning finally rammed right into the immovable wall that is reality, it may be time to start heading for the cliffs. Finally, here is the TBAC's FRN presentation:
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| Blockbuster Full Time Employment Growth, But An Intractable Long Term Crisis Posted: 10 Apr 2012 02:03 PM PDT Blockbuster Full Time Employment Growth, But An Intractable Long Term CrisisCourtesy of Lee Adler of the Wall Street Examiner Over the past week you have heard, read, and seen all kinds of noise about the government's employment report. I even supplied some of that noise. We've seen all kinds of analyses explaining why the data was worse than expected, or better than it looked, etc. To the casual observer, it's all very confusing. That's the way Wall Street likes it. I like to focus on just one major metric in order to cut through all the numerical crap and pundit noise. The number I am interested in is the number of persons employed full time. As usual, I'm only interested in the not seasonally adjusted total, which comes closest to an accurate reflection of reality. It's not a perfect indicator, but it gives us the clearest picture of the trend both in the short and long run. The seasonally adjusted version is a form of modern impressionist art presenting a smooth line that represent's the artist's distorted idealized view of reality. While it attempts to represent reality, it's a fake number that is not real. It's completely made up. As with art, it sometimes imitates life. And sometimes the abstraction is pure fantasy. The best way to view and understand the reality is with actual, not seasonally smoothed data, by comparing the most recent data with the same month last year and in prior years. That gives us a clear idea of whether the trend is improving or deteriorating. We can also look at a long term chart to get an idea of how the current situation stands in the big picture. I'll cut right to the chase. The change in full time employment in March was much, much better than the headline data suggested. The seasonally adjusted increase in non farm payrolls of 120,000 was a big miss, and is ostensibly the reason for the stock market selloff. The real reason is that the government and Primary Dealers have a pile of long term Treasury paper to roll over and sell this week, so they needed to shake the stock market tree to free up some dollars for Treasuries. I covered that story in the Wall Street Examiner Treasury and Fed updates. But the government and the market owners and managers needed a kernel of a story to kick off the selling of stocks and buying of Treasuries, and the employment data was it. The enabling mainstream financial media shills played their Chicken Little roles perfectly. But the story was bullshit. In terms of full time employment, March was a blockbuster, gargantuan positive month. Nothing in the past dozen Marches even comes close to last month's gain. Full time jobs increased by 1.3 million in March versus February. Compare that to March 2011, which was up by 455,000. In 2010, when the economy was rebounding from the depression low, March was up by 777,000. The average gain in March, which is virtually always a positive month, was 300,600 over the 10 years from 2002 to 2011. Excluding the recession figure of -732,000 in March 2009, the average was 421,000. This year was triple that. OK, so it was the weather, I thought. We all know about the warm weather in March. I figured the best indicator of that would be construction jobs. I checked, and they weren't up any more than any other year. If the weather were responsible for the jump, it should have shown up in construction jobs, and it didn't. So, sorry, you can't explain away this number by the weather. As good as this number was, the labor market still has a whole lot of catching up to do. We'll probably never see the bubble levels again in this generation. There were simply millions of fake jobs that aren't coming back until the next systemic bubble. Full time employment peaked in July 2007 at 122.4 million. Today that the number stands at 113.9 million. There are 9.3 million fewer people with full time jobs today than there were in 2007. That fact is even more negative considering that the civilian non-institutional population over the age of 16 has grown by 10.5 million over the same span. The seasonal employment peak comes in July or August each year. This year, full time employment is ahead of the year ago level by 2.7 million, which is the biggest year over year gain in March since 2006. At 113.9 million now, this number just below last year's peak level of 114.3 million set in August. The economy needs to gain just 500,000 jobs by August to break last year's high and confirm an uptrend in employment. The data already made a higher seasonal low in January. What are the odds that it will make it? Last year the March-August gain was 3.1 million. In 2010 it was 3.6 million. The average gain every summer from 2002 to 2011 was 3.3 million. Even in the recession years of 2008 and 2009, the gain over that period was 1.6 million. Barring a seemingly unlikely sudden economic collapse, total full time employment will break out to a new high within the next couple of months. That would confirm an economic expansion. Stock chartists will recognize a reverse head and shoulders breakout, very similar to the one in 2004 that kicked off the acceleration phase of the housing and credit bubble economy.  Full Time Employed Chart - Click to enlarge
What this means in terms of stock prices is an open question. Employment can be a lagging, coincident, or even sometimes a leading indicator of stock prices. In this case, it has been a lagger, and it has not confirmed the bull market in stocks under way since 2009. That may be a danger sign for the future performance of stock prices. An indicator of the ratio of the level of the S%P 500 to total full time employment has reached the upper trend parameter where the stock market topped out in 2007 and 2000. If it rolls over here, that could be a bear market signal. On the other hand, a breakout would suggest that this bubble has room to run. I would not give this indicator a lot of weight without confirmation from other more familiar indicators, primarily those based on the market averages themselves. The fact that March was a big month doesn't mitigate the fact that the US has a big problem. The current ratio of full time employment to total non-institutional population over the age of 16 is 47%. This ratio has been below 48% for the past 3 years. That means that 48% of the people or less, are carrying the load for the other 52%.
 Full Time Employment Vs. Population Chart -click to enlarge
Only twice before in the past 43 years since data on full time employment has been available, was this ratio lower. That was in 1975 and 1983, both at the absolute bottom of bad recessions. Today, 26 months after the low, this ratio is only 1% higher than its January 2010 low of 45.9%. 26 months after the 1983 low the ratio had rebounded by more than 4%. In 1976, 26 months after the low this ratio had bounced by 2.1%. In those terms, the current recovery isn't a recovery. The problem of fewer people earning from and contributing to an economy with an ever growing social burden is not going away. This is one of those things that, to the stock market, doesn't matter, for now. The only thing that matters to the market is liquidity. But if things don't improve significantly in this measure, eventually it will matter, because as the system becomes increasingly top heavy, it will become increasingly unstable. Aside from the ever increasing human suffering the weakness in this ratio represents, it represents an intractable problem for government finances. Government's need to suck up an ever increasing percentage of available liquidity to support the social safety net, or else enact draconian spending cuts and tax increases, will lead to the next inevitable, financial and social crisis. For a template of what lies ahead for the US, see Greece, Spain, Italy, and Ireland.
Get regular updates the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Click this link to try WSE's Professional Edition risk free for 30 days! © Copyright 2012, The Wall Street Examiner Company Inc. All rights reserved.
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| Gold Daily and Silver Weekly Charts – Remarkable Flight to Safety on Euro Jitters Posted: 10 Apr 2012 01:35 PM PDT from Jesse's Café Américain:
This divergence was probably a flight to safety, as gold soared but silver lagged. Gold had also come to the bottom of its short term trend channel, so the selling algos were likely a bit old. I did some buying in the early part of the day as gold and silver were down and some of the better mining stocks including some lesser names were just battered. Read More @ JessesCrossRoadsCafe.Blogspot.com
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| Posted: 10 Apr 2012 01:30 PM PDT by Harvey Organ, HarveyOrgan.Blogspot.ca: Good evening Ladies and Gentlemen: Gold closed up by $17.10 to $1659.50. Silver rose by 16 cents to $31.67. Today a raid was orchestrated by the bankers to suppress both metals as Europe and Asia were in the toilet with respect to their equities. The Dax closed down 2.49%, the Paris CAC dropped 3.10% and the FTSE dropped 2.62%. The Dow seeing red ink quickly joined suit causing gold and silver to fall at the comex opening. However physical demand overpowered the paper shufflers as gold turned positive at 12:30 and never looked back. The Dow succumbed by 213 points. Today we saw something that has not occurred for quite some time. Maybe some of you can go back in time, but I believe this is the first time that gold rose by double digits ($17.50) along side the Dow plummeting by over 200 points since 1997. I cannot recall a situation except maybe in the volatile activity in the markets in 2008. If anyone has a chart on this, I will be grateful. Read More @ HarveyOrgan.Blogspot.ca
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| Brink’s Adjusts 1.5 Million Oz of Silver out of Registered-Vaults: Registered Falls Under 30 M Oz Posted: 10 Apr 2012 01:24 PM PDT from Silver Doctors:
COMEX WAREHOUSE SILVER INVENTORY UPDATE 4/10/12
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| Site Down Again and a Chart Update Posted: 10 Apr 2012 01:18 PM PDT from TF Metals Report:
First of all, while the site was actually working this afternoon, our pal SRSRocco posted this handy little chart showing the decoupling today of gold and silver from the DowJonesIndex. Whether or not this is a one day phenomenon is something to be watched. For now, it's just an interesting anomoly. The move in gold thankfully took us through the $1650 level which had been so pesky yesterday and this morning. Though I'm happy to see it break 1650, gold is still in a bit of a no-mans land, as you can see on the chart below. Until gold can break out of this down-sloping channel and cross back through the 200-day moving average, which would require a close above 1685-1690, there isn't any real reason to get excited. Yes, the CoT was terrific and gold appears ripe for a rally but, with The Cartel and the WOPRs in charge, no one should rush off and buy until that 1685-1690 level is Read More @ TF Metals Report.com
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| Posted: 10 Apr 2012 01:06 PM PDT by Andy Hoffman, MilesFranklin.com:
Not everyone that lies or obfuscates does so to the same end, and in fact, such reasons are myriad and diverse. Peter Schiff is the perfect example of someone whose (conscious) neglect of TRUTH is based on a desire to preserve his "electability." Frankly, there is NO WAY someone can write as brilliant an article as the one below – espousing his air-tight views as to why the U.S. economy will falter and gold will SOAR…
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| A Return to the Gold Standard, or Gold Behind Currencies – Part 1/5 Posted: 10 Apr 2012 01:00 PM PDT Mr. Bernanke is entirely right about the return of the Gold Standard, as it was implemented then could not work now. In its day, it was appropriate and worked well for many years, but the circumstances it worked in changed. The system did not change with those changes. Bear in mind that the world was at a stage where it believed in gold as the only money that one could trust. That's why governments and their central banks issued notes against it and not un-backed currencies. The notes represented an amount of gold that could be trusted. Of themselves government notes represented not governments but their gold.
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| “Casino Jack” Abramoff breaks down how Government is Sold to the Highest Bidder Posted: 10 Apr 2012 12:55 PM PDT from CapitalAccount: US president Barack Obama makes the case in Florida for the Buffett rule — a minimum tax rate for millionaires. Then, he reportedly heads to a 15,000 dollar a head campaign fundraiser. So how does that work exactly? The presumably wealthy people paying 15 thousand dollars for dinner with Obama are giving him money so that he can raise their taxes? What exactly is in it for them? We'll talk about how the political process really works when it comes to money in politics with our guest, former lobbyist Jack Abramoff. He was convicted and sent to prison for mail fraud, conspiracy to bribe public officials, and tax evasion. He served four years before being released on December 3, 2010. After his release form prison, he wrote the book Capitol Punishment: The Hard Truth about Corruption from America's most Notorious Lobbyist.
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| Stocks Plunge On Rare Equity-Gold Decoupling Posted: 10 Apr 2012 12:53 PM PDT from Zero Hedge :
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| What's keeping the gold shares down, and what can we do about it? Posted: 10 Apr 2012 12:03 PM PDT 8:13p ET Tuesday, April 10, 2012 Dear Friend of GATA and Gold: Our friend R.S. asks: "How can we find out how many illegal naked shorts there are on a given gold or silver mining stock? I see that no matter what -- market up, market down, gold and silver up, gold and silver down -- the miners never go up anymore. I own mining stocks. Many people I know own them. No one I speak to who has mining stocks is selling. As a result, I suspect illegal activity by the Federal Reserve, Wall Street, and investment banks. Also, is anyone taking action against these criminals? If there is, I want to participate in such a lawsuit." Dear R.S.: As far as GATA knows, at present there is only one lawsuit targeting corrupt activity in the gold and silver markets, a class-action lawsuit in U.S. District Court for the Southern District of New York for which GATA consulted to the plaintiffs: http://www.gata.org/node/10448 Other than GATA itself, a small, non-profit organization with no full-time staff, gold and silver investors and mining companies have no organization pursuing their interests, the World Gold Council (http://www.gold.org/), which has never said a word about improprieties in the gold and silver markets and the mining share markets, seeming to exist only to insure that there never is a world gold council. ... 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://www.goldenphoenix.us/company-videos.html Of course regulation of the commodity and equity markets in the United States has ceased completely and those markets now are largely rigged through high-frequency trading, index futures buying, and naked shorting. While a select few gold and silver mining companies support GATA, most are too scared or stupid to stand up for themselves against the assault. So increasingly gold and silver investors may choose simply to avoid most paper instruments traded in the United States and instead obtain real metal and vault it outside the banking system and even outside the country. We put your question to gold advocate and mining entrepreneur Jim Sinclair of JSMineSet.com and he quickly and kindly replied: "There are more factors insulting the gold share group than illegal short sales, which, I believe, now make up only a modest amount of the short sales. "Our greatest problems are the gold share and gold share index funds, which, to gain income, are lending their shares to any borrower in any amount for any time period the borrowers wish. Right now these funds are the greatest enemy of gold share prices, allowing legal shorting by hedge funds that will maintain their positions short until the market punishes them. "There is little chance of a bull market in gold shares as long as the supply of borrow-able shares remains as high as it is. "In short the culprits now are those investors who are long on margin and whose shares thus can be borrowed, as well as gold share funds and gold share index funds. The people who take the gold community's money to invest in their funds are screwing us all blue." We also asked for comment from GoldMoney founder and GATA consultant James Turk, who replied: "I don't think there is any way to measure the number of naked shorts. We're operating today pretty much like the bucket shops of the 1920s that Jesse Livermore wrote about. Any firm willing to go naked short can do so. They just call it 'financial derivatives.'" 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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| China?s New Gold Exchange Will Be Good for Gold Investors and Bad for the U.S. Dollar ? Here?s Why Posted: 10 Apr 2012 11:47 AM PDT This June the Pan Asia Gold Exchange (PAGE) will open and six major Chinese banks will begin fixing the gold price every morning at 8AM their time. With that development*the world can now turn to China to get its price for Gold. It will be a [welcomed] challenge to the hegemony/monopoly of the London Metals Exchange and COMEX in New York [and represents a major change/improvement in how the purchase transactions of Gold contracts take place. Let me explain in more detail why] things might never be the same again. Words: 870 So says Sol Palha ([url]http://www.tacticalinvestor.com/[/url]) in edited excerpts from his original article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited below for length and clarity – see Editor's Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.Palha*goes on to say, in part: Why is this a big deal? [*]Individuals will receive actual title to t...
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Which lifestyle choice produces better results – being a hard working American or being a government parasite? Actually, when you look at the cold, hard numbers they may just surprise you. In America today, we deeply penalize hard work and we greatly reward government dependence. If you live in a very liberal area of the country and you know how to game the system, it is entirely possible to live a comfortable existence without ever working too much at all. In fact, there are some Americans that have been living off of "government benefits" for decades. Many of these people actually plan their lives around doing exactly what they need to do to qualify for as many benefits as possible. America is rapidly turning into a European-style socialist welfare state and it is destroying our nation socially and financially. Ever since the "war on poverty" began our debt has absolutely exploded and yet now there are more poor people in this country than ever before. Obviously something is not working.
There was a remarkable intra-day reversal in gold as stocks slumped hard on fresh European debt jitters of the Italian and Spanish variety.
The drawdown in COMEX Registered silver inventories continued Monday, as Brink's today reported an adjustment of 1.5 million ounces of silver out of registered vaults and into eligible vaults, bringing the total COMEX REGISTERED inventories under 30 million ounces for the first time since last summer.
I would have made this new post earlier but, as you know, the site was down again. It sure seems strange that this silly, little site would crash so often but…whaddayagonnado? Anyway, here's a quick update.
It's sad that so much time is spent on this topic, but nothing is more valuable than understanding the war between TRUTH and OBFUSCATION (or better put, LIES). I cannot speak for past instances of dying fiat currencies – of which there have been literally hundreds – but the COGNITIVE DISSONANCE created by man's inability to accept the immutable truth that PHYSICAL GOLD AND SILVER ARE REAL MONEY, and FIAT CURRENCIES WORTHLESS, is awe-inspiring.
Equities suffered their largest single-day drop in 4 months as for once Apple was unable to single-handedly hold up the index letting it drop closer to its credit-oriented risk. A monster day for NYSE and ES (S&P 500 e-mini futures) volume saw Financials and Discretionary sectors underperforming and the Energy sector joining Utilities in the red for the year. The S&P closed at its lows as it broke its 50DMA for the first time since DEC11 as AAPL dropped 1.25% for the day (and -2.5% from the highs) but most notably equities and Treasuries are back in sync from early March as 10Y closed under 2% for the first time in a month. Gold and Silver surged around the European close, on little news, as we suspect safe-haven buying and an unwind of the gold-hedged bank-stress-test rally – with another relatively unusual divergence between Gold and stocks on the day. VIX broke above 21% closing just below it back near one-month peaks as the term structure bear-flattened (but notbaly pushing ahead of its credit-equity implied fair value). JPY strengthened all day (and AUD weakened) as carry trades were unwound in FX markets leaving the USD marginally higher on the day (and EUR marginally lower despite the turmoil in European markets). Oil fell back below $101.50 but it was Copper that has suffered the most – down almost 4% since Last Thursday. Credit markets were weak with HY marginally underperforming IG (beta adjusted) but still implying further weakness in equities as HYG closed just shy of its 200DMA.| 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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