Gold World News Flash |
- Crude Oil Aims Higher as Gold Retreats Following Greek Election
- Forget The Election Results – Greece Is Still Doomed And So Is The Rest Of Europe
- Silver Update 6/17/12 Release Greece
- LISTEN NOW – Gold $3,000 – $5,000 in 12 Months & More – Egon von Greyerz
- Updates & Progress of the Usage of Silver Dirham and Gold Dinar
- Wooing the Germans
- Dutch banks downgraded/Holland's retail sales contract badly/poor USA Empire number/ Poor Michigan consumer confidence number
- Roubini visits the dark side
- SocGen's Take On The Greek Elections And What Happens Next
- What happens if Europe's nightmare visits the United States?
- Soros worries about Europe, buys gold
- No One's Asking the REAL Question That Matters for the EU...
- Back to the fundamentals of investing in silver
- Investing Opportunities in Overlooked Argentina
- U.S. Government Debt Goes From Frying Pan to Fire
- Is Silver Currently Riskier Than Gold?
| Crude Oil Aims Higher as Gold Retreats Following Greek Election Posted: 17 Jun 2012 05:37 PM PDT courtesy of DailyFX.com June 17, 2012 09:30 PM Crude oil prices aim higher and gold is on the defensive after pro-bailout parties secured enough votes to form a government at a Greek election over the weekend. Talking Points [LIST] [*]Crude Oil, Copper Aim Higher as Greek Vote Stokes Risk Appetite [*]Gold Retreats as Greek Eurozone Exit Threat Recedes after Election [/LIST] Growth-geared crude oil and copper prices are on the upswing amid a broad-based improvement in risk appetite after a general election in Greece over the weekend produced enough votes for the main pro-bailout New Democracy and Pasok parties to form a coalition government. The outcome downgraded fears of an imminent Greek exit from the Eurozone, boosting risk appetite and weighing on the go-to haven currencies. Investors feared a disorderly ejection of the country from the currency bloc may materialize if Syriza – a party pushing to renege on the terms of the EU/IMF bailout – were to emerge victorious...
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| Forget The Election Results – Greece Is Still Doomed And So Is The Rest Of Europe Posted: 17 Jun 2012 05:24 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Silver Update 6/17/12 Release Greece Posted: 17 Jun 2012 04:47 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LISTEN NOW – Gold $3,000 – $5,000 in 12 Months & More – Egon von Greyerz Posted: 17 Jun 2012 01:30 PM PDT from KingWorldNews:
LISTEN NOW @ KingWorldNews.com
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| Updates & Progress of the Usage of Silver Dirham and Gold Dinar Posted: 17 Jun 2012 12:57 PM PDT
This just in from our friend Dean Arif, Program Director of Dinihari Dinar in Kuala Lumpur, Malaysia. Dean sent us the following videos which help quantify the progress being made throughout the region to give the population physical gold and silver alternatives to fiat currency. You can see our pal Dean in the first clip at :38 seconds in, giving a lecture on the fractional reserve banking system. Despite the endless mainstream media and Pentagon propaganda which demonizes much of the Islamic world, videos like these are wonderful to see because they remind us that all over the world people are people, and just like us – they long to live their lives in peace, free from the chains of the fiat Banksters.
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| Posted: 17 Jun 2012 12:15 PM PDT by James Turk, Gold Money:
The Wall Street Journal reported at the time that Mr Weber's announcement "undermined a key plank" of Chancellor Angela Merkel's "strategy to restore Germans' confidence in the euro." It went on to say that she "had hoped to win back Germans' trust in the single currency by installing a German as head of the ECB." It was a logical strategy, given the confidence the German people place in the leaders of the Bundesbank, and indeed, in that venerated institution itself. It is a trust well-deserved given that for 50 years the Bundesbank guided the Deutschemark to a record of stability unmatched by any other central bank, except Switzerland, which was pursuing a similar policy based upon German monetary discipline.
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| Posted: 17 Jun 2012 11:45 AM PDT by Harvey Organ, HarveyOrgan.Blogspot.ca:
1. Farmers Bank of Lynchburg Tennessee Gold closed up on Friday to the tune of $6.60 to $1627.00 whereas silver still seems to be under the banking cartels control with respect to price. On Friday, the silver price rose 33 cents to $28.73. The big news from Europe was the big downgrade of the 5 Dutch banks, with the two biggies, Amro and Rabobank included in that list. The Spanish 10 yr yield hit 7% early in the session but later sold off in yield to finish at a yield of 6.88%. The Italian 10 yr bond crossed below the 6% level finishing at 5.92%. Retail sales from Holland plummeted by 11% last month in a performance worse than Spain's 9.7%. Read More @ HarveyOrgan.Blogspot.ca
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| Posted: 17 Jun 2012 11:28 AM PDT In 2009, Noriel Roubini, the well known NYU economist, boldly commented "all the gold bugs who say gold is going to go to $1,500, $2,000, they're just speaking nonsense." Gold, trading at the time in the $1100 range, promptly went straight up — to well over $1900 per ounce by 2011. It was Mr. Roubini, not the so-called gold bugs, who was talking nonsense. Now it seems Mr. Roubini might be coming around. In a new article titled "A Global Perfect Storm," he starts off with this: "Dark, lowering financial and economic clouds are, it seems, rolling in from every direction: the eurozone, the United States, China, and elsewhere. Indeed, the global economy in 2013 could be a very difficult environment in which to find shelter." (My emphasis) "[W]hile the cloud over the eurozone may be the largest to burst," he goes on, "it is not the only one threatening the global economy. Batten down the hatches." In that article (linked below), Roubini outlines an essentially disinflationary outcome to the global turmoil. Though he is long on advice for European policy-makers, he is noticeably short on anything helpful for the ordinary investor. Gold defied expectations in the 2008-2011 time period going from $675 per ounce ($1100 at the time of the Roubini statement) to over $1900 per ounce before taking a much needed (and healthy) breather. Its rise during that initial crisis occurred precisely because it was a "very difficult environment in which to find shelter," as Roubini puts it. Investors did "batten down the hatches." They bought gold coins and bullion in record amounts and, by the way, continue to do so now. In his visit to the dark side of the world economy, Roubini never once utters the word "gold." Perhaps he should reconsider. After all, what does one do when confronted with A Global Perfect Storm??
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| SocGen's Take On The Greek Elections And What Happens Next Posted: 17 Jun 2012 10:57 AM PDT SocGen summarizes today's Greek elections and their implication:
And as an added bonus: the French bank's take on the NEW QE:
All that said, in a global market in which only the next 60 seconds of trading matter, as beyond that anything is merely in the eye of the central planning beholder, and out of the purview of the newsletter one just spent $29.95 purchasing, it is all surely good enough.
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| What happens if Europe's nightmare visits the United States? Posted: 17 Jun 2012 10:31 AM PDT In "The Accidental Empire" Soros alludes to the fact that Britain "which retained control of its currency, enjoys the lowest yields in its history, while the risk premium on Spanish bonds is at a new high." Consider too, that Iceland, which also issues its own currency, is slowly crawling out of the hole created by its crisis in 2008. In the article linked below, former Moody's vice chairman, Christopher Moody says the United States finds itself similarly situated. He sees Europe's banking crisis causing "massive wealth destruction" and "global financial chaos" with the "globalist" banks taking a direct hit — "Citigroup, Bank of America, JP Morgan Chase, Goldman Sachs and Morgan Stanley." He goes on to say that the United States "can withstand any shock" because "it can print the money that it needs. . ." Of course, there's a downside to quantitative easing on steroids: "The stock market will react negatively to the level of uncertainty caused by the collapse of the European financial system (as it did in 1931), and the dollar, yen, and gold should benefit."
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| Soros worries about Europe, buys gold Posted: 17 Jun 2012 09:53 AM PDT The Accidental Empire by George Soros: "It is now clear that the main cause of the euro crisis is the member states' surrender of their right to print money to the European Central Bank. They did not understand just what that surrender entailed – and neither did the European authorities. . . In my judgment, the authorities have a three-month window during which they could still correct their mistakes and reverse current trends. . . [W]e are at an inflection point. The Greek crisis is liable to come to a climax in the fall, even if the election produces a government that is willing to abide by Greece's current agreement with its creditors. By that time, the German economy will also be weakening, so that Chancellor Angela Merkel will find it even more difficult than today to persuade the German public to accept additional European responsibilities."
MK comment: It appears at the moment that Greece has voted to keep the euro. It will not be printing its way out of the problem. Germany, in essence, has won this round, but as Soros predicts in The Accidental Empire, "the EU will become something very different from the open society that once fired people's imagination. The division between debtor and creditor countries will become permanent, with Germany dominating and the periphery becoming a depressed hinterland." Soros Fund Management quadrupled its holdings in gold ETF shares in the first quarter. Remember Soros' comments about gold being in the "ultimate bubble?" Double trouble trumps bubble.
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| No One's Asking the REAL Question That Matters for the EU... Posted: 17 Jun 2012 09:18 AM PDT
The following is an excerpt from my most recent issue of Private Wealth Advisory.
While everyone else is focusing on the Greek elections, the REAL issues pertaining to the EU (namely where the funding for Spain’s bailout as well as future bailouts will come from) continues to be ignored.
Indeed, no one seems to be asking THE key question regarding the EU: Just WHERE is the money for this bailout going to come from?
There are essentially four key options for this: the IMF, the EFSF, the ECB, and the ESM (the Fed won’t do it).
Unfortunately, NONE of them are viable options.
The IMF?
As noted earlier, the answer here is a resounding “NO!” as Obama won’t propose a European bailout during an election year (hence his desperate pleas to Angela Merkel to hold the EU together for the next six months).
The EFSF?
Germany won’t allow the EFSF to fund the Spanish bailout as it would increase Germany’s exposure to the Spanish fall-out. The public outrage regarding the EU is growing in Germany by the day (55% of Germans believe they would have been better off keeping the Deutschmark while another 78% believe the worst of the Euro is ahead)
The ECB?
The ECB has completely avoided any notion that it would fund the bailout. Indeed, at the ECB’s most recent press conference, ECB head Mario Draghi stated,
Draghi Says ECB is Ready to Act as Growth Outlook Worsens
“We monitor all developments closely and we stand ready to act,” Draghi told reporters in Frankfurt after the ECB left its benchmark rate at 1 percent. Downside risks to the economic outlook have increased and “a few” of the ECB’s Governing Council members called for rate cut at today’s meeting, he said…
“I don’t think it would be right for the ECB to fill other institutions’ lack of action,” he said.
An additional item I want to note regarding the ECB… it hasn’t actually bought any EU bonds in 13 weeks, signaling that while it may act in terms of providing liquidity to banks… it has ceased actually monetizing EU sovereign bonds (another indication that Germany is the REAL EU backstop as Germany was completely against monetization).
ECB keeps bond programme on ice, pressure on govts
The European Central Bankbought no government bonds for the 13th week running last week, ECB data showed on Monday as the bank judges the controversial programme of diminishing benefit in the face of the deepening euro zone debt crisis…
Two of the bank's German policymakers quit last year over the purchases, which critics say treads dangerously close to the ultimate ECB taboo of financing governments. The ECB also fears that its interventions give countries less of an incentive to implement the necessary and sometimes painful reforms.
http://in.reuters.com/article/2012/06/11/ecb-bonds-idINL5E8HBA6420120611
This ultimately leaves the ESM, the permanent European Stability Mechanism… which technically doesn’t even exist yet (it’s supposed to be ratified by July 2012).
Indeed, in order for the ESM to be ratified it needs the individual EU member states that will contribute 90% of its capitalization to first ratify it on an individual basis.
Here’s the list of countries that represent that 90% of capital as well as the status of their individual ratifications and the percentage of funding they are to provide.
To summate the above chart succinctly… only four of the required 17 countries have even ratified the ESM (it’s supposed to be completely ratified in July 2012).
Moreover, you’ll note that the PIIGS as a whole are meant to contribute 36% of the ESM’s FUNDING!!!! Spain and Italy alone are meant to contribute 30%!!!! So… Spain is supposedly going to be bailed out by an entity that doesn’t even exist yet… for which Spain is mean to contribute 12% of the funding. And to top it off… Spain hasn’t even ratified the fund itself!!!
More importantly, neither has Germany. And it’s not clear that it will either.
Folks, the real deal is that Europe is out of money. End of story. The only entity that could prop up Spain is the ESM… which doesn’t even exist yet.
So if you’re banking on the fact that the Greek elections mean the EU will survive or that Spain’s “bailout” has solved its banking issues, you’re going to be in for a very rude surprise before the summer’s end.
On that note, if you’re not preparing for the collapse of the EU, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investments (both direct and backdoor) will profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com
Good Investing!
Graham Summers
PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com
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| Back to the fundamentals of investing in silver Posted: 16 Jun 2012 07:56 PM PDT In times of inflation, deflation or financial insecurity this is the asset class to hold while all the others plunge in value. Don't be fooled by the US dollar's strength recently. Its denouement is yet to come and that is when you will really want to own precious metals.
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| Investing Opportunities in Overlooked Argentina Posted: 16 Jun 2012 07:00 PM PDT Mike Niehuser, founder of Beacon Rock Research, recently returned from Argentina where he toured a number of mines in the underexplored Santa Cruz area. In this exclusive interview with The Gold Report, he discusses the cloud of uncertainty hanging over mining after the Argentine government nationalized the oil company YPF and shares why although investors should tread carefully, the political situation creates opportunities for investors willing to do their homework.
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| U.S. Government Debt Goes From Frying Pan to Fire Posted: 16 Jun 2012 06:44 PM PDT This morning, the Treasury Department almost gleefully and proudly announced that foreign holdings of US Debt had hit a record high during the month of April and that bond heavyweight China had upped its holdings after trimming for two straight months. This dovetails nicely with a story that was published earlier this week about the federal reserve and its own holdings of US Debt, which have increased over 450% in the past three years. And no, that is not a typo. The federal reserve now holds over $1.6 Trillion in USGovt debt. Obviously the establishment is thrilled with these developments because it helps maintain the status quo of the dollar standard era. However, there are some serious ramifications that few are paying attention to and are getting almost zero coverage from traditional media outlets. From the AP this morning:
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| Is Silver Currently Riskier Than Gold? Posted: 16 Jun 2012 06:40 PM PDT Gold futures closed higher edging past the $1,600 mark Wednesday, extending their advance to a fourth session - perhaps traders considered prospects for further quantitative easing by the Federal Reserve and other central banks, including the Bank of England, the European Central Bank and the Bank of Japan. Thursday Comex gold futures prices ended the U.S. day session near unchanged in subdued trading and today Gold edged up extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing.
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The election results from Greece are in and the pro-bailout forces have won, but just barely. It is being projected that the pro-bailout New Democracy party will have about 130 seats in the 300 seat parliament, and Pasok (another pro-bailout party) will have about 33 seats. Those two parties have alternated ruling Greece for decades, and it looks like they are going to form a coalition government which will keep Greece in the euro. On Monday we are likely to see financial markets across the globe in celebration mode. But the truth is that nothing has really changed. Greece is still in a depression. The Greek economy has contracted by 
Egon von Greyerz (EvG): Founder and Managing Partner of Matterhorn Asset Management AG & GoldSwitzerland. Since the 1990s Egon von Greyerz has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of Matterhorn Asset Management -MAM an asset management company based on wealth preservation principles. MAM is part of the Aquila Group, Switzerland's largest independent asset management group. EvG makes regular media appearances on CNBC, BBC, etc. and publishes articles on the world economy and wealth preservation.
It has been over a year since Mr Axel Weber made his surprise decision not to seek the top post at the European Central Bank, which led soon thereafter to his resignation as president of the Bundesbank. These events transpired at a critical moment for the euro. The Greek crisis was still simmering, and borrowing costs across southern Europe were rising, raising fears that other countries might follow the path of Greece, Ireland and Portugal in needing bailouts.
Before I commence with my commentary, it saddens me to report that we have 3 new entrants who on Friday took their last breath as they succumbed to the wishes of the FDIC and entered our hallowed morgue.
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