Gold World News Flash |
- Blaming the machines for Gold
- Silver Update 6/15/12 Butler and Bernanke
- A Blueprint to Kill JP Morgan’s Alleged Massive Manipulative Position in the Silver Futures Market
- The Ultimate Preppers – They Were Preppers, But Didn’t Know It
- A Survival Q & A: Living Through SHTF In the Middle of A War Zone
- There isn't any bond 'market,' Kirby notes; Sinclair cites share manipulation
- By the Numbers for the Week Ending June 15
- Are gold investors wising up to cash settlement?
- Guest Post: Does America Face An Election Between Two Moderates?
- Closer ties with Britain offer us a way out of our euro nightmare
- ZH Evening Wrap Up 6/15/12
- Sick Of The Manipulation Of Your Shares?
- Hong Kong Exchanges Outbid JPM, Goldman, Acquire LME
- The Gold Price Rose 2.3 Percent this Week and is Headed for Higher Prices
- The Real ‘Goldilocks Economy’, Part II
- Relying on Fake German Strength
- ECB and FRB Could Unleash “Risk On” Rally Benefitting Undervalued Miners
- Gold, Gold Mining Shares, and QE An Attempt to Answer Two Persistent Questions
- Institutional Advisor Bob Hoye Explains Why Gold Miners are Winners During Deflation
- GUY - Friday Manipulation, Close Banging or What on Guyana Goldfields?
- The Sector That’s Down, Not Out
- Investment Merit? We Don't Need No Stinking Investment Merit
- Gold Seeker Weekly Wrap-Up: Gold Gains 2% on the Week
- How Close Are We to Mining Asteroids?
- Gold Daily and Silver Weekly Charts - Market Manipulation and Special Message from Jim Sinclair
- Pictures From Zimbabwe
- Gold and Silver Disaggregated COT Report (DCOT) for June 15
| Posted: 15 Jun 2012 07:00 PM PDT Bullion Vault
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| Silver Update 6/15/12 Butler and Bernanke Posted: 15 Jun 2012 05:16 PM PDT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A Blueprint to Kill JP Morgan’s Alleged Massive Manipulative Position in the Silver Futures Market Posted: 15 Jun 2012 05:13 PM PDT by JS Kim, Silver Seek:
Our mission at SmartKnowledgeU, besides helping our clients to protect and grow their wealth in the face of the criminality of the global banking cartel, has always been, since day one, to also be a spark to reinstate a sound, gold-based monetary system. Bankers have released so much propaganda and deceit regarding the inability of our current fraudulent monetary system to return to a gold-based monetary system that I have written two books to be released this month and next that refutes the banker-created drivel and propaganda regarding the inapplicability of a gold-based system. In my two books, to be released this month and next, titled (1) The Golden Gift; and (2) The Bankers' Plot to Bankrupt the World & How We Can Stop Them! I describe two important topics that the public-at-large still fails to grasp. One, I describe how the criminal banking cartel can counter-intuitively and periodically temporarily crush gold and silver prices in fraudulent paper markets even as global physical demand rises and physical supplies shrink and the importance of this sham to the banking cartel in seducing the retail investor to always make improper decisions about physical gold and physical silver (ie. not buying it).
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| The Ultimate Preppers – They Were Preppers, But Didn’t Know It Posted: 15 Jun 2012 04:13 PM PDT  It always frustrates me when I turn on the television, read a newspaper or any other source of main stream media that is running a story on preppers. Invariably, with any television series or special, it is promoted with pictures of people with gas masks and AK 47's talking about how they intend to kill zombies when the golden horde arrives upon their doorsteps when the SHTF. The most popular of these shows is the "Doomsday Preppers" series that is running on the National Geographic channel. I will admit, I watch every episode because there are always things I can learn when seeing what others have done to prepare for whatever they are preparing for and find the show to be very entertaining. In my opinion however, these extreme preppers are not a good representative of the vast majority of preppers.Depending upon what any person is prepping for, be it an EMP attack with the long term loss of the power grid, a tornado/hurricane/flood, collapse of the financial system, nuclear war or any number of potential calamities that may come your way, there are always some basics that are universal across the board. These being food, water, defense of life and home and sustainability into an unknown future that will last as long as it does. Outside of these staples of prepping, I have seen some of the extreme preppers having gas masks for the family, underground bunkers designed to ignite propane through hand rails to fry intruders in hallways leading to safe rooms and even homemade explosive devices. I can see why they do it and by having some of these things, they are probably more prepared than most. Having gas masks may be more common place in the prepping community and important for survival, but my point is that these are things that preppers typically take care of after the basics are complete. Read more....... 
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| A Survival Q & A: Living Through SHTF In the Middle of A War Zone Posted: 15 Jun 2012 04:00 PM PDT [Ed. Note: If you missed it, check out this piece from Manos which we originally posted here. The horrible reality of collapse in the United States may be far nearer than you think.] by Chris Kitze, Before It's News via SHTFPlan:
From Selco: OK, i wanna share with you my own experience. (be patient with my English, i am from far away ) I am from Bosnia, and as some of you may know it was hell here from 92-95, anyway, for 1 whole year i lived and survived in a city of 50 000- 60 000 residents WITHOUT: electricity, fuel,running water,real food distribution, or distribution of any goods, or any kind of organized law or government.The city was surrounded for 1 year and in that city actually it was SHTF situation.
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| There isn't any bond 'market,' Kirby notes; Sinclair cites share manipulation Posted: 15 Jun 2012 03:20 PM PDT 11:13a HKT Saturday, June 16, 2012 Dear Friend of GATA and Gold: Evidence of market manipulation keeps pouring in. Writing at GoldSeek and 24hGold, GATA consultant Rob Kirby notes again that the U.S. government bond market is entirely a matter of interest rate derivatives likely purchased and sold by the U.S. Treasury Department's secretive Exchange Stabilization Fund: http://news.goldseek.com/GoldSeek/1339766400.php http://www.24hgold.com/english/news-gold-silver-the-greatest-hoax-ever-p... And at JSMineSet.com gold advocate and mining entrepreneur Jim Sinclair notes particularly extreme episodes of manipulation of mining shares Friday: http://www.jsmineset.com/2012/06/15/sick-of-the-manipulation-of-your-sha... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum (TSXV:NKL) Announces Encouraging Rhodium, Ruthenium, Osmium, Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL; OTC-QX: PNIKF; Frankfurt: P94P) is pleased to provide results of full spectrum 6E (Platinum, Palladian, Rhodium, Ruthenium, Osmium, and Iridium) analysis of platinum group elements on the first batch of samples from the company's wholly-owned Wellgreen PGM-Ni-Cu project in the Yukon Territory, Canada. The company enlisted Activation Laboratories (Actlabs) of Ancaster, Ontario, to conduct a full-spectrum 6E analysis of samples taken from the 2011 drill hole WS11-188. Adding Rh, Ru, Os, and Ir to Pt and Pd increased the total PGE content (6E) by an average of 28 percent, based on a population of 90 samples, most of which are from disseminated sulphide-type mineralization. Assay results with 6E exceeding 0.50 ppm (0.5 g/t) (excluding copper and gold assays) are tabulated at Prophecy's Internet site and are available with assay results from the entire batch of 90 samples here: http://prophecyplat.com/news_2012_may25_prophecy_platinum_announces_rare... Join GATA here: Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum Toronto Resource Investment Conference New Orleans Investment Conference * * * 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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| By the Numbers for the Week Ending June 15 Posted: 15 Jun 2012 03:06 PM PDT This week's closing table is just below.
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| Are gold investors wising up to cash settlement? Posted: 15 Jun 2012 02:55 PM PDT Short-Term Gold Options Get Physical By Lori Spechler http://www.cnbc.com/id/47835510 The CME Group this week is amending its contract for short-term or weekly gold option contracts to allow for the physical delivery of gold. "Investors had wanted a physically delivered contract as opposed to a financially settled contract," says CME spokesman Damon Leavell. "I think that this will attract over-the-counter traders to the exchange." The short-term gold option contracts were originally launched about a year ago but fell short of expectations. Once approved, the options would be five-business-day contracts that launch every single day. Short-term investing has become the norm of high-net worth investors according to a recent report by the World Gold Council. "With the prospect of continued market uncertainty, the challenge for investors is to develop new strategies to cope with higher levels of ambient risk," says Marcus Grubb, World Gold Council Managing Director. The exchange currently has financially settled weekly options in gold, crude oil, and natural gas. ADVERTISEMENT Prophecy Platinum (TSXV:NKL) Announces Encouraging Rhodium, Ruthenium, Osmium, Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL; OTC-QX: PNIKF; Frankfurt: P94P) is pleased to provide results of full spectrum 6E (Platinum, Palladian, Rhodium, Ruthenium, Osmium, and Iridium) analysis of platinum group elements on the first batch of samples from the company's wholly-owned Wellgreen PGM-Ni-Cu project in the Yukon Territory, Canada. The company enlisted Activation Laboratories (Actlabs) of Ancaster, Ontario, to conduct a full-spectrum 6E analysis of samples taken from the 2011 drill hole WS11-188. Adding Rh, Ru, Os, and Ir to Pt and Pd increased the total PGE content (6E) by an average of 28 percent, based on a population of 90 samples, most of which are from disseminated sulphide-type mineralization. Assay results with 6E exceeding 0.50 ppm (0.5 g/t) (excluding copper and gold assays) are tabulated at Prophecy's Internet site and are available with assay results from the entire batch of 90 samples here: http://prophecyplat.com/news_2012_may25_prophecy_platinum_announces_rare... Join GATA here: Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum Toronto Resource Investment Conference New Orleans Investment Conference * * * 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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| Guest Post: Does America Face An Election Between Two Moderates? Posted: 15 Jun 2012 02:16 PM PDT Submitted by James Miller of the Ludwig von Mises Institute of Canada Does America Face An Election Between Two Moderates?
At the beginning, most journalists in the West were celebrating the Egyptian revolution as a victory for democratic governance. They saw the possibility of untainted elections as the best way for Egyptians to adopt their values. With the first presidential runoff ballot since Mubarak just around the corner, the good feelings have begun to wear off. Many prominent media publications are dismayed that this weekend's contest is looking like a battle between two radical candidates. The Globe and Mail reports: If this is what democracy is like, maybe we're better off without it, many Egyptians voting in their first-ever truly free presidential election must be thinking. With a choice between a leader of the Muslim Brotherhood on the one hand and a former air-force commander and prime minister for Hosni Mubarak on the other, not only do these virgin voters have to choose between two political extremes, but the majority of Egyptians don't want either of them to win. New York Times columnist Thomas Friedman equates the runoff election with "having to choose between two diseases." From the mainstream, corporate media perspective, this isn't how elections are supposed to play out. In America, the Democrat vs. Republican paradigm forces both parties to appease centrists and independent voters. The nominees must campaign not as extremists, but pragmatic moderates who embody the level headedness of the people. The victor in November is thus given an electoral mandate from the voters to carry out their collective will. This is also the election process taught in public schools and universities. But while the American public has been duped into believing such a process gives rise to pragmatic and temperate leaders, quite the opposite is true. With former Massachusetts Governor Mitt Romney now the presumptive Republican nominee, campaign season is now fully underway. Romney is being portrayed as the free market loving, social conservative choice to Barack Obama's cool, calm, and collected liberalism. Instead of falling victim to the stereotype of being a fragile leftist, Obama's ramping up of the War on Terror has been applauded by the right as a step toward the center. Weekly Standard editor and all around warmonger Bill Kristol declared the President a "born again neo-con." And in spite of initially supporting a public option within his key legislative achievement of health care reform, Obama opted for the less extreme alternative of the individual mandate that the conservative Heritage Foundation once endorsed. As for Romney, he was portrayed by his opponents as Obama-lite due to his pioneering the President's health care scheme during his tenure as governor of Massachusetts. Romney has gone on record stating "I'm not going to cut $1 trillion in the first year" as it would "cause our economy to shrink [and] would put a lot of people out of work." Of course his logic only works if you believe the money stolen and spent by the government actually creates wealth despite the expenditures never having to compete in the open market. Statements like these are what leads to Romney being called a "closet Keynesian" by Paul Krugman and the "Massachusetts moderate" by Newt Gingrich. Though the November election will be hyped as two opposites squaring off against each other, both candidates are considered rather moderate compared to who could have been the nominees. The question is, are Barack Obama and Mitt Romney really that moderate? Let's account for the similarity in policy of both. –Both are large supporters of the military industrial complex. Romney has vowed to increase defense spending and wants the Navy, which is larger than the navies of the next 13 nations combined, to ramp up production of warships. Numerous times the former governor has vowed to prevent Iran from acquiring a nuclear weapon even if it means offensive military action. For Obama, as the New York Times recently revealed, the President spends every Tuesday morning playing God by picking out drone targets on what could be mistaken for baseball cards. His unlawfully ordered death strikes are based on flimsy evidence and incredibly vague criteria for determining who the enemy is. And then there are the hundreds of civilian casualties that have been a result of the unaccountable killing spree. The drone war won't end in a second Obama administration and military aggression will likely escalate under a Romney presidency. This policy does absolutely nothing to keep the U.S. safe and everything to put the public in harm's way. –Both show no opposition to the Federal Reserve System and the banking cronyism it has institutionalized. Both supported the Wall Street bailouts and the unprecedented bout of money printing that took place during the financial crisis. While Goldman Sachs was Obama's biggest private donor in the last election, the investment firm is currently Romney's largest donor. This election is shaping up to be more of the same as Wall Street is bankrolling both candidates. Seeing as how the whole banking system operates under the veil of solvency due to fractional reserve lending, it is in the elite money lender's interest to use their easy access to the printing press to keep the house of cards from collapsing. –Neither candidate has made a peep out of ending the needlessly expensive and socially degenerating drug war. In fact, the Obama administration has increased spending on drug enforcement and has cracked down on medical marijuana distributors more than any other president before him. Romney hasn't taken a position on the drug war but considering his socially conservative talking points, it's extremely unlikely he will allow others the freedom of putting what they want in their own bodies. In short, both candidates are supporters of the prohibition on dry plants and the seedy and dangerous black market it has created. –And then there is the drug of which all of Washington is addicted to: spending and borrowing. Neither Obama nor Romney have presented budgets that have actually brought expenditures in line with revenues. The national debt would balloon under both their proposals. Being that, as Lew Rockwell identified, pork barrel spending is the "entirety" of the federal government's budget, denying the welfare dependents of their food stamps, the elderly of their Social Security checks, farmers of their subsidies, green energy companies of their taxpayer loans, Wall Street of its implied bailouts, dictators of their foreign aid, and military contractors of their lucrative deals has become electoral suicide. Those opposed to the above polices are typically referred to as radicals. This is especially so for the independent minded who see politics as a game played by well dressed mobsters and the state as an institution of pure thievery. In modern American discourse, peace is now the policy of ignorance. The right to do what you want with your self and property must come second to the will of the ruling class. Being in favor of free markets and not the crooked capitalism which politicians love means wishing to see workers starving in the streets. True liberty is only of value to the dimwitted and unpatriotic. Texas Congressman Ron Paul was a steadfast supporter of sound money, nonintervention, the unfettered market, and significantly axing government spending before a now guaranteed financial collapse. His reward was being treated like a senile uncle and his presidential campaign being subjected to an incredible amount of voter fraud. He was deemed too much of a threat to the establishment. In the end, Paul and others who are disgusted at the utter cronyism that is the state aren't the extremists. What's extreme is a blind adoration of government power. Paul isn't a radical; he is practically the only politician in Washington who isn't a closet socialist or fascist on an egotistical power trip. With such radicalism deeply entrenched in the U.S. government, the best hope the country has is for this fall's election turnout to be the lowest on record. Like Egypt, the choice is between two radicals seeking to use the state's apparatus of violence to help their political buddies and mold society to their liking. Voting for the lesser of two evils is still evil and immoral. The freedom to not vote is still available to Americans. They would be best to exercise it before it's too late.
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| Closer ties with Britain offer us a way out of our euro nightmare Posted: 15 Jun 2012 02:11 PM PDT [Ed. Note: David McWilliams is the creator of Punk Economics. He is an author and economist that lives in Ireland and has birds-eye view of the ongoing collapse.] from David McWilliams:
The currency may survive but not as it is at the moment. The total failure of the huge Spanish bank bailout changes the game because it signals the end of the easy options for Germany which must face up to how much it will cost to hold the euro together. It is important to appreciate that this is not a fire drill. You know the way we Irish are with fire alarms? We pretend that someone must be messing about as the alarm couldn't possibly suggest that there is anything to worry about, could it? We don't have to evacuate the building because it must be just a joke, surely? This is not a joke. It is deadly serious. According to Reuters yesterday, European finance officials are discussing limiting ATM withdrawals in Greece as well as introducing capital controls in the event that the Greeks vote this weekend for parties that want to tear up the bailout agreements. We now have Spanish and Italian bond yields soaring, despite the €100bn bailout for the Spanish banks. Read More @ DavidMcWilliams.ie
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| Posted: 15 Jun 2012 01:55 PM PDT
No news links tonight, it's Friday & I'm too lazy. In summary - Gold is crashing up - Obama has decided congress & the constitution are both completely irrelevant... and American workers for that matter - Fed is monetizing & flattening the curve, completely blowing by the fact that the availability of credit does not create demand - A guy is walking on a rope over niagara falls at 10pm eastern Oh, and the market has the potential to blow up on Sunday evening
You can listen to the news of the day here
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| Sick Of The Manipulation Of Your Shares? Posted: 15 Jun 2012 01:08 PM PDT Dear CIGAs, Have you had enough of the manipulation of your gold and silver shares? The more noise we make the closer we come to getting the light shined on these evil people. Complain about the raids of your investments by short sellers if you have witnessed it. Hi Jim, Looking at quite Continue reading Sick Of The Manipulation Of Your Shares?
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| Hong Kong Exchanges Outbid JPM, Goldman, Acquire LME Posted: 15 Jun 2012 01:00 PM PDT By Silver Doctors:
Please note that this is NOT the LBMA, and the cartel has not just ceded control of their physical gold and silver bullion exchange vehicle to the Chinese. The Hong Kong Exchanges win is still a huge disappointment to our favorite banksters.
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| The Gold Price Rose 2.3 Percent this Week and is Headed for Higher Prices Posted: 15 Jun 2012 12:35 PM PDT Gold Price Close Today : 1,627.00 Gold Price Close 8-Jun : 1,590.10 Change : 36.90 or 2.3% Silver Price Close Today : 2873.4 Silver Price Close 8-Jun : 2846.1 Change : 27.30 or 1.0% Gold Silver Ratio Today : 56.623 Gold Silver Ratio 8-Jun : 55.869 Change : 0.75 or 1.3% Silver Gold Ratio : 0.01766 Silver Gold Ratio 8-Jun : 0.01790 Change : -0.00024 or -1.3% Dow in Gold Dollars : $ 162.21 Dow in Gold Dollars 8-Jun : $ 163.21 Change : $ (1.00) or -0.6% Dow in Gold Ounces : 7.847 Dow in Gold Ounces 8-Jun : 7.895 Change : -0.05 or -0.6% Dow in Silver Ounces : 444.32 Dow in Silver Ounces 8-Jun : 441.10 Change : 3.22 or 0.7% Dow Industrial : 12,767.17 Dow Industrial 8-Jun : 12,554.20 Change : 212.97 or 1.7% S&P 500 : 1,342.84 S&P 500 8-Jun : 1,325.66 Change : 17.18 or 1.3% US Dollar Index : 81.547 US Dollar Index 8-Jun : 82.511 Change : -0.964 or -1.2% Platinum Price Close Today : 1,485.70 Platinum Price Close 8-Jun : 1,423.60 Change : 62.10 or 4.4% Palladium Price Close Today : 629.10 Palladium Price Close 8-Jun : 610.65 Change : 18.45 or 3.0% For the week the GOLD PRICE gained 2.3% and passed other milestones. It busted through all that resistance from $1,590 through $1,608, was whipped, battered, beaten, and attacked and still slogged through $1,608 and marched into enemy territory to stake out a camp today at $1,627, up $8.60 on the day. The GOLD PRICE gain came in the teeth of an early morning attack that sent it reeling to $1,618.90. Faster than the fall it shot straight up to $1,633.60, then was clubbed again down to $1,621 -- all within the space of an hour. Gold arose and fought its way back to $1,632, but eased then to confirm that $1,622 bottom once again and solidify its gains with that $1,627 close. Looks like the GOLD PRICE manipulation is about as successful as most government operations. Since last September gold has traced out a vast declining triangle, with a base about $1,525. It must clear $1,725 to escape that triangle, and that lies above its 150 DMA (now $1,663.26). Don't expect any sharp falls in gold, nothing more below $1,610, but the rise across the summer should feel more like shuffling sideways than rising. Relax, possess your souls in patience. The bottom of that correction has been reached, and from here gold is headed for higher prices. Today the SILVER PRICE traded in a 30 cent range, from 2884c to 2854c. Yeah, sure. Closed up 33.3c at 2873.4c. The SILVER PRICE, too, has painted a declining triangle, and validated its base around 2650. Like $1,725 for gold, silver must pass above 3400c and its 300 DMA at 3443c to stop the mouths of quibblers, whiners, and moaners. It will, oh, it will. On the road right in front, silver must conquer the hill at 2910c, then move through the 50 DMA at 2965c. Assuming the Greek election doesn't elect Medusa, expect the "good news" of euro-peace in Greece to send the euro up and silver and gold down a bit. On the other hand, should Medusa be elected and turn the bankers to stone by her mere glance, the euro will tank and silver and gold soar. BOTTOM LINE: The SILVER and GOLD PRICE put the bottoms on their corrections on 18 May and from here will fight their way upward. I expect that sometime in the fall gold will exceed its September 2011 high ($1,927 intraday, $1,888 close). Buy more silver and gold. If you have a position heavy in gold (more than 30% gold), consider swapping some of that gold for silver at the present 56.6:1 ratio, targeting an eventual swap back into gold at under 30:1. (That implies -- DOES NOT GUARANTEE -- that silver will gain about 50% against gold and that at 30:1 silver will buy about twice as many ounces of gold as it buys now.) As always, the weekly scoreboard tells its own unarguable tale. Gold gained 2.3%, silver 1%, Dow rose 1.7%, most of that in the last two days. US dollar index lost 1.2% as the Nice Government Men prepared their Rube Goldberg system for the potential shock from Greek elections. To the unanimous approval of the world phrenological community, central bankers meeting in Los Cabos, Mexico last night affirmed that they would inject vast new waves of fresh money to aid their struggling economies. As I hinted above, the cloud hanging over every market that has the Nice Government men staying up late sweating bullets and jimmying markets is the election in Greece. Hard to understand Greek politics even if you speak Greek, but basically two philosophies are represented in the election: the Establishment parties that favor complete and utter capitulation and abasement before the banks, and the other parties that favor complete and utter capitulation and abasement before the banks, only a little more slowly. This compares favorably to Republicans and Democrats in the US, who don't even offer that much choice. Whichever party wins the election, the banks win and the people lose. STOCKS were the primary gainer from the central bankers' phrenological announcement and the Greek elections, as the faithful labor under the Galvanic delusion that repeatedly applying the inflation nostrum that didn't work the first time will somehow make it work the next. In plain words, they expect central banks to jump in with another paroxysm of money printing (like QE) and they believe that monetary electricity will shock the body economic into lively action. Say, are any of y'all familiar with the Cargo Cult? It works a lot the same way on New Guineans that central banking works on stock investors, only less harmfully. Technically stocks have risen out of what seemed to be a head and shoulders top but now appears to be a continuation pattern and the Dow will probably hit 13,100 before it stops. But don't light the landing torches just yet, for the cargo planes have not been spotted and stocks will yet disappoint, dismay, and torture. Dow Industrials today rose 115.26 (0.91% to end at 12,767.17. S&P500 rode right along with it, a few steps ahead in fact, rising 13.74 (1.03%) to 1,342.84. Y'all should seize any rise in stocks to sell your stocks and convert the proceeds into silver and gold. US DOLLAR INDEX (with the Nice Government Men's help, surely) looked even worse today than yesterday,. It lost 32.3 basis points (0.42%) and ended the day at 81.547. Technically this leaves the dollar correcting a peak at 83.54 (1 June) from a previously unbroken rally that began 1 May at 78.60. Below its 20 DMA, the dollar index could fall to 80.75 without any effort whatever, and still recover and continue rallying. Yen today gapped up through its 20 DMA (126.30) to end up 0.91% at 127.15, smack on its 200 DMA (127.15). Above the only barrier (other than NGM) is the last high at 128.77. The euro is most egregiously iffy. Closed today up a meager 0.08% at $1.2642, but this barely pokes through resistance at $1.2624 from the January (and last low). And 'tis walking above its 20 DMA. A huge short position in the euro virtually guarantees a very sharp rally at some point. On 15 June 1215 in Runnymede, England the bishops and barons of England, fed up with King John's oppression, asserted their ancient rights and forced him to sign the Magna Carta or Great Charter of Liberties. Once widely understood and protected as the foundation of all English and American liberty, few today know the rights it guaranteed and tyrannies it forbade or that it ended arbitrary government. Today most of these liberties have, as a practical matter, been lost. They include: * Freedom of the Church * Freedom from arbitrary search or seizure without due process. Nearly dead, thanks to the Patriot acts and other tyrannies. * Justice shall not be sold. * Freedom to travel. Y'all don't have this, do you? You do have driver's "licenses" (permits), don't you? You do submit to search -- even strip search -- to board an airplane, right? Or maybe they don't do that where y'all are. Yet whatever tyrannies the government practices, by ancient right and inheritance the rights secured by Magna Carta are still ours. They may be stolen, but they can never lawfully be taken from us. We may be overpowered, but we can never be conquered. Thank you all for your prayers for my wife Susan. I took her to her heart surgeon in Nashville today, and there is a slim chance she may not have to have a mitral valve replacement right away. If that chance falls through, then she will have surgery 3 July. I deeply appreciate not only your kind emails, but also your generous willingness to pray for successful surgery and speeding healing for her. Y'all enjoy your weekend! Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't. 
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| The Real ‘Goldilocks Economy’, Part II Posted: 15 Jun 2012 11:30 AM PDT by Jeff Nielson, Bullion Bulls Canada:
The purpose of Part II is thus to first expand upon this definition which was presented in Part I, and then to point readers toward how such an economic dream could be achieved. The best way in which to accomplish this is to look at the three facets of the Goldilocks paradigm individually. With respect to the propaganda myth of "steady growth", understand that as a matter of the simplest arithmetic that this is impossible with any/every economy which embraces the suicidal Keynesian doctrine of perpetually rising debt-levels. Obviously if you begin with an economy which is spending 1% of each dollar of revenue paying interest on debt, then 5%, then 10%, and now 25% to 30% (as Europe's Deadbeat Debtors prepare to default) you can never possibly have steady growth. Read More @ BullionBullsCanada.com
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| Relying on Fake German Strength Posted: 15 Jun 2012 11:18 AM PDT Wolf Richter www.testosteronepit.com While we’re sitting on the edge of our chairs, waiting breathlessly for the Greek election, or for Fate to swallow Greece and send financial Armageddon over the Eurozone, stock markets rallied. Not because of a sudden plethora of good economic news, but in anticipation of how central banks might react to the Greek vote—that’s how far this farce has come! As if sheer artificial liquidity could wash away the putrid odor of decomposing debt. They lined up on Friday to give their spiel. ECB President Mario Draghi would “continue to supply liquidity to solvent banks where needed.” Bank of Japan governor Masaaki Shirakawa was “prepared to take all possible measures” but denied rumors that central banks around the globe would take coordinated action. The Bank of England spoke up. The Swiss National Bank confirmed its iron determination to keep the flood of euros at bay, with capital controls, if it had to; its currency peg would hold, come hell or high water. To calm the credit markets, it was leaked earlier that Draghi, European Council President Herman van Rompuy, European Commission President José Manuel Barroso, and Euro Group President Jean-Claude Juncker were feverishly bent over a grand plan to convert the beleaguered monetary union into some sort of federal state governed by unelected EU bureaucrats. So, while waiting for the vision to appear, I skyped with a friend in Germany who owns two restaurants. They’re doing well, he said. 2011 was a record year, and this year looks good too. He’d redecorated, his new menu was a hit, and he was excited, though it was a day-to-day struggle, in a jungle of regulations, with taxes out the wazoo. And what about the debt crisis? He didn’t pay much attention to it, he said. Indeed. The debt crisis has been good to Germany, formerly the “sick man of Europe.” After Reunification, Germany was marked by high unemployment, stagnation, and lacking innovation. The dotcom euphoria bypassed it. Inflation surged and real wages declined. Industry restructured, ditched unprofitable operations, axed workers. But countries around it boomed. Spain and Greece were riding high. The Celtic Tiger was cleaning everyone’s clock. And Germans became morose. Eventually, the internal devaluation, insidious as it was on the middle class, paid off for industry. Exports took off, and Germany was showing signs of growth. Then the financial crisis hit. Export orders fell off a cliff, causing GDP to plunge 2.1% in the fourth quarter of 2008 and a horrid 3.8% in the first quarter of 2009. Annualized, those two quarters printed a double-digit decline in GDP. The worst two quarters in the history of the Federal Republic. The German economy lives and dies by its exports. But as the financial crisis morphed into the Eurozone debt crisis and began infecting the periphery, Germany recovered. Exports to Asia skyrocketed, exports to European countries did well, and a good part of the US stimulus money made its way to German enterprises, such as Siemens and its suppliers. They produced and hired. Exports last year exceeded €1 trillion for the first time ever. Unemployment dropped to a two-decade low. Its budget is nearly balanced, and yields on its debt probed zero. Euphoria set in. Short lived, it seems. According to a slew of recent data, Germany is backsliding. Its banks are highly leveraged and packed with who knows what kinds of decomposing assets. Its debt, at 81% of GDP, is high for a country that can’t print its own money, and is higher than that of Spain. If China implodes and the US enters a recession, while the Eurozone continues to teeter, German exports will once again collapse. The savior of Europe will find itself in a deep recession, with large deficits, rising unemployment, spiking yields.... “Germany’s strength is not unlimited,” Chancellor Angela Merkel told the Bundestag on Thursday. She was committed to the euro, she said, but would eschew counterproductive quick fixes, such as Eurobonds and other forms of debt sharing. She was addressing President Obama, French President François Hollande, and her European counterparts who have been demanding that the German taxpayer pick up the tab for the profligacy of others. The same day, the French government drove a wedge into the rift between the two countries, the core of the Eurozone. Without it, nothing will work. Hollande, while in Rome to form an anti-Merkel triumvirate with Italy and Spain, presented his plan to save the Eurozone: institute “euro-bills” (his word for Eurobonds) and use ECB funds to recapitalize banks (via the ESM). Panic attack, it was called in Germany: the French mega banks, chock full with rotten assets, were teetering, and to avoid having to beg Germany to help bail them out, Hollande wanted to change the rules so that he could ask the ECB instead. Then, Prime Minister Jean-Marc Ayrault suggested that Merkel shouldn’t “sink into simplistic formulas.” And Arnaud Montebourg, Minister of Industrial Renewal, accused her of “ideological blindness.” Friday, Merkel hit back. “Pooling the debt may be of interest to some, but in Germany, it would lead to mediocrity,” she said. “And mediocrity must not become the standard in the Eurozone”—thus slapping the M-word on the French. “If Greece doesn’t get its next loan installment, the Eurozone will collapse the following day,” scowled Alexis Tsipras, leader of the left-wing SYRIZA. By threatening the entire Eurozone with its demise, if he won the election, he ratcheted up the bailout extortion racket a few more notches. The run on Greek banks turned into panic. Eurozone heads of state, already on edge, threatened Greece in return. Everything is coming to a head. Read.... Greece in Panic ... um, Wait! And here is the hilarious video from down-under comedians Clarke & Dawe that in 2.5 minutes summarizes with superb accuracy the entire Eurozone debt crisis.
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| ECB and FRB Could Unleash “Risk On” Rally Benefitting Undervalued Miners Posted: 15 Jun 2012 09:46 AM PDT We do not equivocate or hedge or straddle ambiguous opinions. We try to deal in straight talk. Time and time again we have been a rare voice calling for a better than expected rally in wealth in the earth mining assets, gold, silver, uranium, rare earths and graphite. Well here we are with the weekend Greece election which could depending on the outcome cause a pandemic meltdown for the global economy. Already Greece is in crisis, hospitals are out of basic necessities, people are rioting in the streets and jumping out of buildings. Unemployment is above 22%. The case for the Federal Reserve announcing accommodative measures is exponentially growing as the U.S. dollar has strengthened and commodities have declined since the expiration of QE2 last summer in 2011. The Fed meets Tuesday and Wednesday of next week and may use this meeting to promote a "risk on" rally, especially if the European uncertainty spreads to the U.S. financial system. Do not forget MF Global and JP Morgan lost billions of dollars investing in sovereign debt. We predict more banks may face significant losses especially if we see a decline in bond prices or the U.S. dollar which is quite an overbought and crowded trade. First let's look at the source of a potential rally. A possible announcement by the European Central Bank (ECB) acting in concert with the Federal Reserve could unleash a counter attack catching the naysayers and hedgemeisters frozen in their shorts. We wrote, "In the midst of such a sepulcher market, we sense that a relief rally may descend unexpectedly and equally precipitously as the decline through which we are going, will be the rise. Note that the relief rally will come as surely as the sun breaks through the clouds of doom and gloom." In one fell swoop a massive injection of liquidity could be administered worldwide. Victoria's messenger could come galloping on the scene just in time at a propitious moment. Do not be surprised to see increased volatility to the upside as there are a record number of investors and funds in the U.S. dollar and Treasuries. Where will these speculators go if the Fed makes a move to punish the hoarders of U.S. dollars and treasuries? This liquidity stimulates inflation which encourages a rise in the prices of our select natural resource equities. Certainly the naysayers will rush to cover and those "experts" who only recently were calling for the death of commodities will join the risk on camp in panic mode and fail to be positioned for a potential powerful upmove. The action by the Fed and the ECB will not be the last move in this quest for global liquidity. It comes as no surprise to my readers that QE3 or Operation Twist 2 waits in the wings. Additionally, as part of this one-two blow, The Feds may extend record low interest rates to 2016 to send the "shorters" down to the canvas once again. Watch gold and silver as the little guy in Europe is grabbing a handful of gold and "poor man's gold" to escape the Euro. Do not be caught up with the masses when it occurs in the United States. In the sector we must think two steps ahead before the hard rain falls.
Recent price action vindicates our repeated entreaties to keep your hand firmly on our selected "wealth in the earth" resources and precious metals. Patience and fortitude is still valid and will pay off. Sign up for my premium service for free by clicking here…
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| Gold, Gold Mining Shares, and QE An Attempt to Answer Two Persistent Questions Posted: 15 Jun 2012 09:13 AM PDT Tocqueville The protracted correction in gold and precious metals stocks that began in September 2011 appears to have ended. Our conclusion is based on historically reliable gauges of sentiment, valuation and technical factors. (We will publish the specific readings on these gauges with our second quarter investment letter on June 30.) This basing, in our view, should establish a solid platform to launch both the metals and the related mining shares to new highs within the next year. The investment sentiment for gold and especially mining shares is demoralized and confused. This setting, in our opinion, equates to an outstanding, low risk entry point to both the metals and the shares in anticipation of future monetary debasement. Question # 1: Gold Price Outlook and QE The fundamentals that led gold to trade briefly above $19...
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| Institutional Advisor Bob Hoye Explains Why Gold Miners are Winners During Deflation Posted: 15 Jun 2012 08:56 AM PDT In an interview with GoldMoney, institutional advisor Bob Hoye explains Why Gold Miners are Winners During Deflation Read More...
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| GUY - Friday Manipulation, Close Banging or What on Guyana Goldfields? Posted: 15 Jun 2012 08:52 AM PDT HOUSTON -- Is the chart below a case of close banging, manipulation, a mistake, trading on non public information, or what? In any case it smells like day old dead fish. "Friday, June 15, 2012 … RBC apparently bangs the close. Someone trading through RBC fires a huge market order into the $2.50s bid, literally at the last minute of trading, smashing Guyana Goldfields (TSX:GUY.T) down to $2.18. Intrepid reporters ought to be asking, "Why wait till the close on Friday, a day when GUY was challenging its upper resistance earlier in the day, to blow out 1.5mm shares?"
Update-1 at 17:45: Vulture C.C. suggests that this story from Monday, June 11 and the removal of GUY from the S&P Canadian Index is a likely cause of the last minute dump by RBC. The effective date for the GUY removal is Monday, June 18. If true, then the large sell order was, at the very least, poorly handled by the seller ... or was it from RBC's point of view? Vulture C.C. also suggests that the action raises the possibility of a short-term opportunity, noting that RBC was on the buying end as well as the selling end of part of the last minute dump. That is all, carry on.
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| The Sector That’s Down, Not Out Posted: 15 Jun 2012 08:40 AM PDT Dave Gonigam – June 15, 2012
It's a common scenario in, for instance, war zones. But in one peaceful and highly developed country, it's coming uncomfortably close to reality — a reality that turns up an unlikely investing opportunity.
"The controversial move," according to the Agence France-Presse newswire, "comes amid fears that electricity demand will outstrip supply as temperatures soar and air conditioners get cranked up, further crimping Japan's wobbly economic recovery." As of last month, all 50 of Japan's working reactors have been offline — part of the lingering aftermath of the Fukushima disaster in March 2011. But Prime Minister Yoshihiko Noda says that's simply not sustainable: "Nuclear generation is an important power source (and) energy security is one of the country's most important issues," he said last week.
 Result of that shortfall: Japan is importing liquefied natural gas at a cost of roughly $20 per thousand cubic feet. That compares with a U.S. natgas price of $2.48 this morning. "At the same time," says Byron, "their utility companies are hemorrhaging red ink over importing oil to run their oil-fired generators." The nuclear restart in Japan reinforces Byron's view that nuclear power is down, not out.
"In terms of the improved safety, the types of passive cooling systems that are coming out, the new reactor designs, entirely new designs for uranium fuel rods that include beryllium that make them almost melt-proof…" Did he say that right? "A fascinating technology," he explains, "of mixing beryllium and uranium that will create fuel rods that literally would never melt down." Wow. Byron's been on the beryllium beat for more than four years. But events are starting to move very quickly. "This 'super metal' technology," he enthuses, "can be used in an incredible array of different areas… including nuclear, aerospace, defense, telecom, computing, electronics, medical, automotive, oil and gas and many more. "It's 30% lighter than aluminum. It's six times stiffer than steel. And it is both nonmagnetic and nonsparking." Byron is now 10 days away from conducting an exclusive conference call spelling out his favorite opportunity in the beryllium space… along with plays on two more high-tech metals that could prove equally lucrative. "Independent researchers say the potential is enormous," according to Byron: "Up to $53 billion worth of products could be affected within the next three years." To make sure you don't miss out, follow this link.
Late yesterday, chatter emerged about "global coordinated action" among central banks to pump as much liquidity into the system as it takes, depending on the outcome of the (latest) Greek election Sunday. Combine that with the prospect of QE3 or a variation thereof when the Federal Reserve meets next week and the Dow has crested 12,700. About where it was, oh, a month ago.
The particulars…
Oanda is one of the few outfits that executes trades over the weekend. But it's shutting down from 6:00 a.m.-3:00 p.m. Eastern Time on Sunday. "The decision to halt trading is very much tied to the uncertainty in Europe and, in particular, the Greek election," says an Oanda statement. Indeed, "This Sunday could be a turning point for global markets," says our monitor of market sentiment Abe Cofnas. "The Greek election will, no matter the outcome, cause a rebalancing of fears." Victory by Syriza, the anti-austerity party, "will trigger major fears of a collapse of the eurozone," says Abe. "A defeat could be followed by relief and trigger a 'risk on' market and surges in the global indexes." Abe is advising readers of Fear & Greed Trader to be at the ready first thing Monday morning… because he'll be up even earlier to scope out his unique four-day trades. When sentiment shifts on a dime, Abe is ready to pounce with "in on Monday, out by Friday" plays. Check out how it works here.
Gold's move up today has been minimal, to $1,627. Silver likewise, to $28.72.
"As with all developing markets," he says, "you see the clash of old and new. For example, the Blue Sky Tower is the tallest building in the city, at 25 stories. It's an elegant building and instantly became the iconic center of the skyline in the capital, Ulaanbaatar. Right next to it is the Choijin Lama Temple, built in 1905.  "In a lot of ways," he goes on, "Ulaanbaatar is just like many other booming developing markets I've visited. The traffic is terrible. Pollution is a problem, and water and power resources are stressed. But UB takes these to extremes by the force of its own quirky character:  As for the investment opportunity, Chris says it's shaped by one thing: A severe shortage of capital. The giant Oyu Tolgoi copper-gold mining will fuel "tens of billions of dollars in additional spending," he explains, "ready to squeeze its way into a tiny $8 billion economy of just 2.8 million people." "Yet the boom is constrained by lack of funding. It's not easy to raise money to buy real estate or build something. The capital markets here are still in their infancy. The stock market is tiny, but growing rapidly. There is no venture capitalist community or robust private equity market. Banks are the main source of financing, and they have lent to full capacity." Result? One publicly traded company Chris follows "can take a pot of money and double it in six months just by buying land." Chris' full dispatch went out this week to readers of Mayer's Special Situations. Access here.
Recently, the Electronic Privacy Information Center used a Freedom of Information request to obtain a 2011 manual from DHS, laying out dozens of words the agencies monitors on social media websites. ("Pork" is fair game because of swine flu, it would seem.) As government overreach goes, that's bad enough. This is worse: "We were also very surprised that they were monitoring specifically for dissent and criticism of the government," says EPIC's Ginger McCall. "That falls entirely outside the statutory bounds of what this particular component of the agency is supposed to be doing." McCall was interviewed recently by CBS News; Addison posted it this morning on his Facebook page. Click the image to check it out…  Yes, we grasp the irony — discussing the stupidity of our rulers in the very medium we know they're monitoring for dissent. You can join in this small act of subversion by "friending" Addison at Facebook right here.
Outrageous you say? Then that makes you a "conspiracy theorist" in the mind of British Home Secretary Theresa May. "I just don't understand," she told The Sun, "why some people might criticize these proposals. I have no doubt conspiracy theorists will come up with some ridiculous claims about how these measures are an infringement of freedom. But without changing the law, the only freedom we would protect is that of criminals, terrorists and pedophiles." Alrighty, then…
Timothy Yost came upon a bag filled with the coins — and some bills — when he stopped along the Colorado River one day last January to wash his feet. He took the bag to a bank, which called police, who tried to track down the owner of the stash — worth a total $77,000. The police met with no success, so the Bastrop City Council voted this week to let Yost keep it.  The first thing he plans to buy? A car. "I've been walking for so long, the first thing I want is a vehicle."
"They forgot to roll credits in the video — too bad, I haven't seen new work by Josef Goebbels in nearly seven decades. Is he really resurrected and employed by the White House… I wonder if his boss is also a consultant?"
"I am a Canadian, so no visa required (last time I checked!), and we are both residents in Malaysia on a long-term (10-year) resident visa in Malaysia." "The response I received was all nice and sweet with the final advice that my wife should apply for her visa in Thailand." "Now a small thought experiment…what if my wife was from Chile? Does this mean she would have to travel from Malaysia to Chile to get/not get a U.S. visa?" "Accordingly, our trip to Canada in August (no problem there, as my wife has a multiple-entry Canada visa… granted the same day applied for) will not include a side trip to the U.S. Too bad, as we will now spend that time and money in Canada."
"Just yesterday, we left Bimini, Bahamas, in our boat bound for Miami Harbor. Thirty minutes prior to our arrival at the Miami Harbor government cut, we called the Customs and Border Protection office for small vessels and we were instructed to proceed to our moorage marina at Coconut Grove, Biscayne Bay, and call back." "After tying up, we called in and received our clearance number and we were then instructed that all passengers (my wife and I) were to proceed to the customs and immigration office at the cruise line docks in Miami for a personal interview within 24 hours. We were told if we did not report within the allotted time, we would be penalized. Our boat has been in and out of the U.S. on both coasts and both we and the boat are in their computer files." "This morning, seven Customs and Border Protection agents descended on the boat, some from the Department of Agriculture, for an onboard inspection. All was well, but we were still required to trek to the cruise ship customs office despite the inspection. The paperwork they filled out included boat registration, passport inspection with numbers recorded, recording of our clearance number as well as our provisions accounting. They could not approve our passports." "To comply with the Customs request, we needed to rent a car to drive 30 minutes back to Miami, where we had just been, so we simply could hand our passports to an agent who reviewed them and handed them back within three minutes. Ah, now legally in the U.S." "All totaled, it required the participation of 10 Customs and Border Protection agents, two on the phone, seven for a 30-minute on-board inspection and one to personally review our passports for us to re-enter our own country. It is no wonder foreign visitors are discouraged when it is this difficult for U.S. citizens. This reflects a pinnacle of government inefficiency. No wonder the U.S. is in financial difficulty when it takes 10 people to do the job of one, which could be handled by phone. I am sure they are all on the payroll with pensions." "Thanks for your good work."
 "I could understand if one were using 3" 00 Buckshot," adds another, "but are you hunting grouse or shooting clay pigeons?"
The 5: Yes indeed, we're up and running with expanded coverage tomorrow. The Saturday edition is 5 Things You Need to Know… a concise wrap-up of the most important insights from the previous week's 5 Min. Forecasts. On Sunday, Addison will speak up with whatever's on his mind; it could be a new threat to your wealth, or a new investing strategy or a reflection on the inanity of what the late Kurt Richebacher called "late degenerate capitalism." Whatever it is (even I don't know this week's topic yet), you won't want to miss it… Have a good weekend, Dave Gonigam P.S. "I usually like to relax," writes one more correspondent, "after my short weekend reading from The Daily Reckoning. Thanks for giving me more work, LOL. Keep at it. "FYI, I purchased the book from your suggestion, The Law. Very eye-opening to relate Bastiat's perception of legislators back in his time with our current pols. Thanks for this suggestion. I am considering getting The Little Book of the Shrinking Dollar next. "One last thing: Where can I sign up, and what's the price for the Under $10 Reserve?" You want your absolute best value on The Little Book of the Shrinking Dollar? Join the Laissez Faire Club. We laid out the value proposition two weeks ago, but it's worth revisiting. It costs $10 to join the Laissez Faire Club. Once you're in, you can get any printed book in the catalog for 20% off. That would make The Little Book of the Shrinking Dollar cost $18.36. For your total $28.36, you'd get not only The Little Book of the Shrinking Dollar… you'd also get our Economics in One Library — bound copies of:
[Yes, we know, you have a copy of The Law already. The other would make a great gift.] Plus, you get access to the Club's entire e-book library, including this week's release, The Lysander Spooner Reader. Here's where to join. As for the Under $10 Reserve — one of our most unusual package deals — pricing depends on what other services you already get from us. Call John Wilkinson at (866) 361-7662 to learn exactly what discount you're entitled to!
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| Investment Merit? We Don't Need No Stinking Investment Merit Posted: 15 Jun 2012 08:34 AM PDT We have already discussed the lack of consensus amongst the sentiment indicators, and this discrepancy in the data has me cautious on equities. Typically, the best market bottoms leading to the most sustainable market rallies occur when the indicators are in alignment. But despite the lack of convergence, there is one thing the investors seem to agree upon: that some central bank entity (or maybe all of them) has their backs. Whether it is the ECB or the Fed, someone or something is going to support falling asset prices no matter what the cause. In other words, investors have the strong belief that asset markets won't be allowed to fall as central bankers are providing a back stop and that the interventions of the central bankers will be successful at elevating asset prices. We are in a market environment where the only thing that matters are the actions of central bankers, and it is commonly accepted wisdom that not only will they act on any market weakness, but that their actions will be successful at preventing any further slide in asset prices. I find this to be a toxic brew. First, when everyone in the market is expecting one thing to happen, the market has a nasty way of seeing that it doesn't happen. Back in 2009, very few investors heard of quantitative easing, but after 2 QE's and an Operation Twist (QE 3 in disguise) investors have been primed like Pavlov's dog himself, and they cannot contain themselves at the specter of central bank intervention. Everyone knows what QE is, what QE does to asset prices, and how to profit from QE. You just buy. You cannot lose as some central bank (the deep, deep pockets) has your back. However, all QE is not created equal. QE1 was launched after a devastating collapse in the markets where the fall in prices had created quasi- generational values. QE2 occurred in 2010 and it clearly brought to the attention of investors the link between interventions by central bankers and asset prices. Do you remember the POMO days? Operation Twist occurred after a 4 week, 20% drop in the SP500. The market and economic response to each market intervention has been less such that Operation Twist has been less effective than QE 2 which was less effective at jolting the economy and markets as QE1. Now, investors are demanding/ expecting more QE and prices on the SP500 are still above the 200 day moving average. Is it really going to be that easy for Mr. Bernanke to acquiesce to the wishes of market participants? The second thing that concerns me is the lack of investment merit in this market. I am not sure "actions of central bankers" would qualify as an investment theme especially in the absence of more "credible" themes like stocks represent a good value here or the economy is improving or employment and wage growth are expanding. These are the more "traditional" reasons to own equities not some action of a central bank. The airwaves are filled with pundits discussing Europe and the next move by the Fed, and as I heard yesterday on CNBC, "How can an investor lose? Every road leads to central bank intervention." While the mantra "Don't fight the Fed" seems to ring true with investors, I am little less sanguine than most, and I have a hard time buying the accepted dogma. I am not so sure that the Fed will act and implement another round of QE, and it is unclear how the market will react beyond the initial bout of enthusiasm if central bankers meet investor expectations, and of course, you have to wonder is that already being priced in as investors act like Pavlov's dogs. TheTechnicalTake offers a FREE e-newsletter:
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| Gold Seeker Weekly Wrap-Up: Gold Gains 2% on the Week Posted: 15 Jun 2012 08:28 AM PDT Gold spiked up to $1633.42 by a little before 8:30AM EST before it fell back to $1619.87 in the next 20 minutes of trade, but it then chopped its way back higher into the close and ended with a gain of 0.12%. Silver surged to $28.844 before it dropped back to $28.538 and then rallied back higher at times, but it ended at just unchanged on the day.
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| How Close Are We to Mining Asteroids? Posted: 15 Jun 2012 08:07 AM PDT Synopsis: Wealthy speculators are placing bold bets on asteroid mining and accelerating trends in the French economy. Dear Reader, Chris Wood here, filling in for David Galland. Today's issue is full of good stuff. Robert Ross will kick it off with an interesting look at the future and economic implications of asteroid mining. Then Adam Crawford will delve into the troubling economic situation in France. And, of course, we'll end it all with some Friday Funnies. Let's get started.
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SHTFplan editor's note: When it hit the fan in Bosnia in the 1990′s the electrical grid and water utilities went down, thus there was no heat in the winter and no potable water available for drinking. The currency and banking system were non-existent and commerce in its traditional form came to a standstill – leaving only barter as a way to acquire goods. The food supply and transportation systems fell apart. Police, fire, and medical services disappeared. Violence, disease and death spread throughout the region. Few were prepared for what would follow. This is Selco's story. Pay attention, it may save your life one day.
We have a better chance of winning our group in Poland than the euro has of surviving in its present form.
Honk Kong Exchanges & Clearing have beaten out the Western banksters (The Morgue and The Vampire Squid) and have acquired the LME (London Metals Exchange).
In Part I, we were presented with a mythical "Goldilocks economy"; a contrivance of propaganda where B.S. Bernanke attempted to portray the U.S.'s worsening economic collapse as representing some sort of Golden Age. We were also presented with a legitimate definition of a Goldilocks economy: steady growth, stable employment, and muted inflation. However, back in the real world we saw a U.S. economy which literally exemplified the exact opposite of all those characteristics.
It's an ugly picture: An electrical grid so fragile, factories have to shut down for hours at a time and households experience routine blackouts.
This weekend, Japan's prime minister will likely order two of the country's nuclear reactors back online.
No wonder: "Parts of Japan have literally 30% less electricity than they did a year and a half ago," said Byron King during a wide-ranging interview yesterday with Lauren Lyster of RT.
"In terms of the rest of the world," says Byron, "we're going a good place in nuclear.
Yesterday's "hopium" rally has carried into today.
Not even a batch of rotten economic numbers could dispel the euphoria. Heck, they only reinforce the notion that more easy money is just around the corner!
There's enough nervousness about the Greek election that one currency-trading platform will suspend trading this Sunday.
Like yesterday, precious metals traders aren't sniffing the same easy-money glue as stock traders.
"I've come to understand the boom here in ways I didn't before," writes Chris Mayer from Mongolia — home to the world's fastest-growing economy. "It's amazing to see."
You don't have to use words online like "attack" or "anthrax" to potentially come under the scrutiny of the Department of Homeland Security; even "pork" could bring you in the net.
Meanwhile, in the U.K. — which always seems to be three or four years ahead of the U.S. on these things — the government has unveiled a plan to log details of every phone call, text message, email and Web visit.
In a story that begs the question "How do you lose 40 gold Krugerrands," a homeless man who found 40 gold Krugerrands in Bastrop, Texas, will be allowed to keep them.
"I viewed the propaganda video by the U.S. State Department about visiting the USA," says a reader after yesterday's episode of The 5.
"So," writes a reader with an on-the-ground tale of the "ease" involved in visiting the States, "I inquired last month at the U.S. Embassy in Kuala Lumpur (where we live) about the process to apply for a U.S. visitor visa for my wife, who is a Thai national."
"My wife and I are seasoned international travelers," writes a U.S. reader to inform us what a pain it can be to re-enter the country.
"You're never gonna kill zombies with 'game load,'" writes a reader who caught the "in case of zombies" photo yesterday. "Try these instead."
"Can't tell you what a real pleasure it is to read The 5 first thing every morning," writes a self-described "ardent fan" on the other side of the world. "Now seven days a week, it will force me out of bed on the weekend."
| Deficit to GDP | Debt to GDP | |
France | -5.2% | 85.8% |
Portugal | -4.2% | 107.8% |
Ireland | -13.1% | 108.2% |
Italy | -3.9% | 120.1% |
Greece | -9.1% | 165.3% |
Spain | -8.5% | 68.5% |
| Source: Eurostat 2011 data | ||
This reckless borrowing ends and the painful – but necessary – economic contraction begins when the market punishes heavily indebted countries with higher interest rates. This is what is happening to Portugal, Ireland, Italy, Greece, and Spain.
| 10-year bond yield | ||
| Portugal | 10.67% | |
| Ireland | 8.21% | |
| Italy | 6.04% | |
| Greece | 28.91% | |
| Spain | 6.51% | |
| Source: Bloomberg | ||
So far, France has escaped the wrath of the sovereign bond market. In fact, the yield on France's 10-year bond recently slid to an all-time low. But the smart money is beginning to question the French government's ability to repay its debt. The evidence can be seen in credit default swaps (CDS), which have spiked nearly 35% since March. The cost to insure $10 million in French debt for five years currently stands at $213,000 per year. This number is relatively small when compared to the cost to insure the debt of other troubled nations in the Eurozone. However, it is strikingly similar to the cost to insure the sovereign debt of these same troubled nations three short years ago.
2009 | 2012 | |
| France | $39,000 | $213,000 |
| Portugal | $79,000 | $1,070,000 |
| Ireland | $220,000 | $679,000 |
| Italy | $107,000 | $552,000 |
| Greece | $162,000 | $8,161,000 |
| Spain | $98,000 | $600,000 |
| Source: Bloomberg | ||
David Hinman, comanager of SW Asset Management firm, believes insurance on French debt could soon follow the PIIGS's path into the stratosphere:
"The severity of French CDS' going from 220 to 500 is going to be very meaningful and it could very easily happen. There is too much debt with very little prospects for them being able to work it out. I am not sure how all of this plays out."
This time isn't different
One thing is for sure: the boneheaded economic agenda of France's newly elected Socialist leader will only make the country's precarious financial situation much worse. Here's a list of President Hollande's most memorable campaign promises:
- Raise taxes on the "rich"
- Freeze fuel prices
- Increase welfare payments
- Hire 60,000 new teachers; and
- "Make layoffs so expensive for companies that it's not worth it" (my personal favorite).
The scary thing is, implementing these reckless reforms should be a piece of cake given that the Socialists are likely to win a majority in the Parliamentary elections. If this does happen, expect to see soaring debt and a sinking stock market in the near future (just like last time the French elected a socialist leader).
France's economic predicament is but one of myriad opportunities the world's shaky economy is presenting to self-directed investors. Some particularly intriguing speculations can be found in our flagship publication, The Casey Report, which is helping subscribers position themselves to profit from the Volatility Index, options on a Chinese index fund, and a host of emerging trends that Wall Street is ignoring.
But perhaps the biggest opportunity that awaits subscribers – indeed, all investors – lies beneath the surface of the United States' teetering economy.
Friday Funnies
Congratulations, Graduates
The Source of Our Problems
Congressional Express – Don't Leave Home Without It!
Greek Mythology
The Modern World
That's it for today. Thank you for reading and subscribing to Casey Daily Dispatch.
Chris Wood
Senior Analyst
Casey Research, LLC
Gold Daily and Silver Weekly Charts - Market Manipulation and Special Message from Jim Sinclair
Posted: 15 Jun 2012 08:05 AM PDT
Posted: 15 Jun 2012 07:57 AM PDT
Just because "Spanish banks are fine" 12 days before they got a full-blown bailout, and global hyperinflation can never happen in this world, where every central planner is now preparing to hold the CTRL and P buttons until the bitter end, here are some pictures from Zimbabwe.
And some charts:
And the chart most familiar to Americans as at least when it comes to government debt, Zimbabwe is America.
But don't worry. The USD will never lose its reserve status. Oh wait...
Finally, a timeline:
- April 1980
- The (first) Zimbabwean dollar replaces the Rhodesian dollar at par, which buys US$1.54. A series of bank notes is issued, ranging from Z$2 to Z$20.
- From 1994 to 2006
- The Reserve Bank issues a new series of notes, from Z$2 to Z$100. As inflation rises and erodes the currency's purchasing power, Z$500 and Z$1,000 banknotes are issued from 2001 to 2005. In the first half of 2006, new Z$50,000 and Z$100,000 denominations debut.
- Aug. 1, 2006
- The first currency reform is implemented in an effort to contain spiraling inflation. The Zimbabwean dollar is redenominated by lopping off three zeros from the old currency. The new (second) Zimbabwean dollar is revalued at one new dollar = 1,000 old
dollars.
- The first currency reform is implemented in an effort to contain spiraling inflation. The Zimbabwean dollar is redenominated by lopping off three zeros from the old currency. The new (second) Zimbabwean dollar is revalued at one new dollar = 1,000 old
- July 1, 2007
- The Z$500,000 note is introduced, valued at about US$16 at the official exchange rate.
- Dec. 31, 2007
- The Z$750,000 (US$25) note begins circulation.
- Jan 1, 2008
- The Z$1 million, Z$5 million and Z$10 million denominations debut.
- April 2, 2008
- Z$25 million and Z$50 million bills are introduced. Prices of basic goods are in millions—a T-shirt costs Z$276.5 million, pants Z$2.75 billion. Tomatoes and other local produce are priced in millions.
- At a restaurant, two beers and water cost Z$1.24 billion.
- May 2, 2008
- The Z$100 million, Z$250 million and Z$500 million notes debut. Annual inflation reaches more than 100,000 percent.
- May 15, 2008
- Z$5 billion, Z$25 billion and Z$50 billion notes are printed.
- July 1, 2008
- A Z$100 billion note is issued, about the price of three eggs at the time.
- Aug. 1, 2008
- Another round of currency reforms is implemented. The government slashes 10 zeros from each second Zimbabwean dollar bill and the third Zimbabwean dollar is valued at 10 billion old dollars (second Zimbabwean dollars). Inflation continues rising.
- Sept. 29, 2008
- New Z$10,000 and Z$20,000 notes are introduced.
- Oct. 13, 2008
- The new Z$50,000 bill is printed.
- Nov. 5, 2008
- Z$100,000 and Z$500,000 notes are issued.
- Dec. 4, 2008
- The Z$1 million, Z$10 million, Z$50 million and Z$100 million bills appear. Ten days later, the Z$200 million and Z$500 million banknotes debut, followed by the Z$1 billion, Z$5 billion and Z$10 billion notes issued on Dec. 19, 2008.
- Jan. 12, 2009
- The government issues two new denominations: Z$20 billion and Z$50 billion bills.
- Jan. 16, 2009
- Even higher denominations are issued: Z$10 trillion, Z$20 trillion, Z$50 trillion bills and the largest banknote ever—the Z$100 trillion bill.
- Feb. 3, 2009
- The Reserve Bank of Zimbabwe introduces the fourth Zimbabwean dollar, with 12 zeros removed from old bills, making 1 trillion old dollars equal to one new dollar. Denominations of the new currency are the Z$1, 5, 10, 20, 50, 100 and 500 notes. However, loss of confidence quickly leads to abandonment of the Zimbabwean dollar in favor of foreign currencies, primarily the U.S. dollar and the South African rand.
Source: Dallas Fed
Gold and Silver Disaggregated COT Report (DCOT) for June 15
Posted: 15 Jun 2012 07:57 AM PDT
HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below.
(DCOT Table for Friday, June 15, 2012, for data as of the close on Tuesday, June 12. Source CFTC for COT data, Cash Market for gold and silver.)
In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter.
All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
As a reminder, the linked charts for gold, silver, mining shares indexes and important ratios are located in the subscriber pages. In addition Vultures have access anytime to all 30-something Vulture Bargain (VB) and Vulture Bargain Candidates of Interest (VBCI) tracking charts – the small resource-related companies that we attempt to game here at Got Gold Report. Continue to look for new commentary directly in the charts often.
That is all for now.
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