Gold World News Flash |
- COLLAPSE within WEEKS, RON PAUL PRESIDENCY? – Bix Weir
- "Disappointment" Over Fed Minutes Sees Gold, Silver at 2-Week Lows…
- Gold at Triangle Support
- Fleckenstein – Central Banks & The Fed Are Close To Panic
- Deutsche Bank’s Brebner: Gold Headed To $2,000/oz By Early 2013 Amid Inflationary Bias By Central Banks
- Treasuries Sham Can’t Be Explained By ‘Voodoo Economics’
- World Economic Collapse – The 11th Hour
- Gold 22% Rally to Record Seen by Eric Sprott: Commodities
- TOO CLOSE TO CALL
- Gold & Silver Will Soon Collapse to $1,380 and $18 Resp. & Then Surge to $3,950/$117 in 2013
- Jim Grant Discusses The Fed's 'Backward Shooting Gun', And Black Walnut Tree Treasury Replacements
- The Gold Price is Trading Within a Narrowing Range and Will Break Out Rallying
- Three Gold Charts: Ignore Them At Your Risk
- Libor Is Not the Only Manipulated Economic Number
- Extreme Danger Signposts
- Gold Seeker Closing Report: Gold and Silver End Mixed
- How Health Care Can Cost So Much, Despite Technology
- Sprott Sees Record Gold Price in 2012 on Debt Weight
- Gold Daily and Silver Weekly Charts - Raid Gets Stuffed As Silver Shines, Benny Aurophobic
- High Government Deficits "Crowd Out" Stock Market Returns
- Erskine Bowles: ‘We Are Going Over the Fiscal Cliff’
- Extreme Danger Signs, U.S. Econcomy Galloping Recession, Brewing Gold Allocated Accounts Scandal
- Today Is Best Day to Buy Gold
- The War Between Manipulation and Buying
- Fleckenstein - Central Banks & The Fed Are Close To Panic
- The ?80-20 Rule? Suggests Gold Will Reach $8,300/ozt in Spring of 2015!
- The Telegraph: The Price of Gold Has Been Manipulated. This is More Scandalous Than Libor
- LGMR: "Disappointment" Over Fed Minutes Sees Gold, Silver at 2-Week Lows, But "More QE Ultimately Due"
- Old gold often erroneously sold below market price
- Fed Disappoints, and Risk Assets Get Sold
| COLLAPSE within WEEKS, RON PAUL PRESIDENCY? – Bix Weir Posted: 13 Jul 2012 12:15 AM PDT |
| "Disappointment" Over Fed Minutes Sees Gold, Silver at 2-Week Lows… Posted: 12 Jul 2012 11:51 PM PDT Bullion Vault
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| Posted: 12 Jul 2012 10:42 PM PDT courtesy of DailyFX.com July 12, 2012 02:08 PM Daily Bars Prepared by Jamie Saettele, CMT If a triangle is unfolding from the May low, then the range will tighten for perhaps another few weeks or more before the break. “Gold has oscillated on both sides on 1600 since May 2011. This length of consolidation will probably fuel an impressive break…eventually. The sideways trading from the May 2012 low is taking on the form of a head and shoulders continuation pattern (bearish) but a break below 1548 is needed to confirm. Exceeding 1641 would shift focus to 1671 (May high).” LEVELS: 1500 1527 1548 1583 1600 1625...
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| Fleckenstein – Central Banks & The Fed Are Close To Panic Posted: 12 Jul 2012 10:20 PM PDT from KingWorldNews:
Bill Fleckenstein continues @ KingWorldNews.com
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| Posted: 12 Jul 2012 09:30 PM PDT Daniel Brebner is head of metals research at Deutsche Bank. He has consistently been cited as one of the most accurate metals forecasters by Bloomberg. by Sumit Roy, Hard Assets Investor:
Daniel Brebner: I don't think it's lost its safe-haven status. The gold price has been reacting to a risk-aversion environment, which is linked to perceptions of low growth globally. Growth issues have been emerging not only in Europe, but also increasingly in the U.S. and in China. This is creating deflationary pressures and deflationary risks, which is resulting in a liquidity squeeze. Read More @ Hardassetsinvestor.com
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| Treasuries Sham Can’t Be Explained By ‘Voodoo Economics’ Posted: 12 Jul 2012 09:00 PM PDT by Jeff Nielson, Bullion Bulls Canada:
Once again I was forced to observe my name being spelled incorrectly throughout another insulting rant. I note this because there are four variations on the spelling of "Nielson". However this writer selected the same incorrect variation as did Joe Weisenthal when he launched his own attack on my work. This strongly suggests that my new attacker, John Carney, Senior Editor of CNBC, never even read my original piece (where my name is naturally spelled correctly); but rather chose to attempt his own rebuttal after merely reading Mr. Weisenthal's attack. This in turn is suggestive of a sloppy and arrogant mind. Let's see if these traits are exhibited in Mr. Carney's attempt at analysis. Fortunately he summarizes his two arguments at the end of his attack, otherwise it would have been very difficult to decipher precisely what Mr. Carney was trying to say in his own effort at explaining how the Treasuries market Ponzi-scheme can continue to be funded. It's all about "the contraction of other safe sources" and/or "the expansion of demand created by deficit spending", he says. Read More @ BullionBullsCanada.com
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| World Economic Collapse – The 11th Hour Posted: 12 Jul 2012 08:22 PM PDT |
| Gold 22% Rally to Record Seen by Eric Sprott: Commodities Posted: 12 Jul 2012 08:00 PM PDT by Liezel Hill, Bloomberg:
"I just can't imagine the demand for gold is going down," he said in a July 9 interview at Bloomberg's Toronto office. "I don't personally see a solution to the problem that we're in, the financial leveraging issue that we all have where everybody wants to shed debt and there's no buyers." Sprott's company manages funds investing mainly in gold, silver, and precious-metals equities. He expects bullion will rise as investors seek the safest assets while governments spend to stimulate their economies, increasing chances that inflation will accelerate.
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| Posted: 12 Jul 2012 07:13 PM PDT Is it a bear market, or is it a bull market, that is the question. On one hand Europe is obviously in a recession. China is slowing dramatically, and the US economy is clearly in stall mode at best, and slowing rapidly at worst. That alone would suggest that a bear market has begun. On top of that, the S&P broke through its daily cycle trendline today (although it did manage to rally back before the close).  A break of the trend line usually indicates that the daily cycle has started its decline into a cycle low. If this turns out to be the case, then this cycle would have topped on day 21 which gives it quite a few days to move down into the cycle bottom. (Average daily cycle length trough to trough is about 35 to 40 days.) If it does turn out that the cycle topped on the 21st day then there is a strong chance of testing the June lows at the next cycle bottom. As a matter of fact I think if we break below the June 25th half cycle low it will indicate that the intermediate cycle has topped and we should break below the June bottom if not during this daily cycle then probably a sharp break below that level during the next daily cycle. On the other hand there are quite a few bullish signs that are popping up. For starters this is an election year. Does anyone really think that the politicians won't pull out all the stops to try and keep the economy and markets inflated up until the election? Next; the advance decline line managed to make a new high even though the S&P was still 3% below its 52-week high. As Jason Goephert at sentiment trader.com has pointed out, this has almost always lead to new highs. As a matter of fact Jason noted that since 1940 there have been 13 similar occurrences and all but one led to the market making new highs within 3 months, on average within 18 days of the advance decline line breakout.  Another positive is that the CRB's rally out of its three year cycle low appears to be consolidating in a bull flag in preparation for another leg up. If stocks are caught in a bear market then the CRB should be rolling over rather quickly.  Oil is also resisting the short-term weakness in the stock market and appears to be consolidating the initial $10 thrust off of its intermediate bottom, and preparing for another leg up.  A different but related vein of thought is the US dollar index. Today was the 16th day of the dollars daily cycle (average duration 18 to 28 days). Which is just to say that it's getting late enough in the cycle that the dollar should start to move down again any time now. And a major concern for bears would be any move lower by the dollar as risk assets tend to trade inversely. An even bigger concern is dollar sentiment. It's currently at levels that have generated intermediate tops almost without fail in the past.  The fact that we still haven't seen a left translated daily cycle out of the dollar makes me think that the dollar still has an intermediate decline ahead of it. Considering that this week would be the 17th week in an intermediate cycle that usually runs 18 to 25 weeks and there's a good chance that this sentiment extreme is going to force an intermediate top as soon as this daily cycle runs out of steam. A possible negative is the fact that gold seems unable to gain any upside traction in this new intermediate cycle. If the CRB has formed a three year cycle low why isn't gold generating any upside momentum? If gold were to drop below $1547 it would indicate that a left translated daily cycle is in progress, and as many of you know a left translated daily cycle often indicates that the intermediate cycle has topped as well. Another negative is the fact that mining stocks as represented by the GDX ETF did move below their prior daily cycle bottom. The one small sign of hope is the reversal today, which if it holds above the May lows could indicate that miners are just moving through a 1-2-3 reversal, and this was the #2 test of the lows.  Of course we won't know whether this is in fact what is happening until miners either break below the May bottom or move back above the June high. For the bulls the S&P needs to move above 1375, The CRB must generate another leg up. and gold must make a higher high by reclaiming the $1622 level. Those are the bullish lines in the sand. For the bears they need to see the stock market drop below the half cycle low of 1310, The CRB must break downwards out of the consolidation, and gold has to drop below $1547. I think the appropriate position for traders at the moment is to stay in cash until we see which one of these lines are going to be crossed first.       
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| Gold & Silver Will Soon Collapse to $1,380 and $18 Resp. & Then Surge to $3,950/$117 in 2013 Posted: 12 Jul 2012 06:30 PM PDT Due to the severe financial crisis in Europe, capital will continue to*take refuge in the U.S. Dollar and gold and silver*will collapse to US$1,380/oz. (Fibonacci Retracement 61.8% level) and US$18/oz. (Fibonacci Retracement 76.8% level) respectively, in the third quarter of 2012. So says Juan Eduardo Morales Veas (www.moneyfearandgreed.com) in edited excerpts from his original submission to www.munKNEE.com (Your Key to Making Money!). Veas goes on to say, in part: Any Euro zone agreement*will only be*a temporary relief for investors because the central banks around the world will provide more and more QE as*deemed necessary to “save” their economies. A low rate policy is a disaster for savers, investors and pension plans while deflation is the biggest catalyst for gold and silver which will be the best way to protect your assets*over the next three years. My forecast for gold and silver are US$3,950/oz. and US$117/oz. respectively, in the fourth quarter of 2013. ...
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| Posted: 12 Jul 2012 05:06 PM PDT Yesterday, when discussing the forthcoming implications of the Libor scandal, we said that in the barrage of coming lawsuits, "the entity that will be sued by proxy is the Federal Reserve, whose Federal Funds rate is really the setter for the baseline Libor rate." This claim came at an opportune time, just hours before one of the Fed's most vocal critics (and gold standard advocates), Jim Grant, appeared on TV to discuss precisely the same thing. Best summarizing his position is a cartoon that appeared in a recent issue of Grant's Interest Rate Observer in the context of Lieborgate, and who is really at fault here.
What follow next are some of the traditionally brilliant bullet point that we have come to associate with Grant. On the Fed's arsenal:
On Liebor and the Fed:
On whom anger should really be focused:
On the Fed's centrally-planned "reality show":
On the paradoxical perfect storm which everyone sees:
One observation which our European readers will likely not find too palatable:
And finally, where people should get "yield":
Full clip below:
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| The Gold Price is Trading Within a Narrowing Range and Will Break Out Rallying Posted: 12 Jul 2012 04:05 PM PDT Gold Price Close Today : 1564.90 Change : -10.30 or -0.65% Silver Price Close Today : 2713.60 Change : 14.1 or 0.52% Gold Silver Ratio Today : 57.669 Change : -0.683 or -1.17% Silver Gold Ratio Today : 0.01734 Change : 0.000203 or 1.18% Platinum Price Close Today : 1409.80 Change : -23.40 or -1.63% Palladium Price Close Today : 573.50 Change : -15.35 or -2.61% S&P 500 : 1,334.76 Change : -6.69 or -0.50% Dow In GOLD$ : $166.09 Change : $ 0.69 or 0.42% Dow in GOLD oz : 8.035 Change : 0.034 or 0.42% Dow in SILVER oz : 463.34 Change : -3.58 or -0.77% Dow Industrial : 12,573.27 Change : -31.26 or -0.25% US Dollar Index : 83.63 Change : 0.193 or 0.23% The GOLD PRICE lost $10.30 to close at $1,564.90. The SILVER PRICE rose again today, up 14.1 cents to 2713.6 and above 2700c resistance. I am still riding the same horse. The GOLD PRICE is trading within that even-sided triangle, and today completed its move from the top boundary on 2 July to the bottom boundary. Next it will trade up toward that top boundary, and one day will trade through it and break out rallying. Only a close below $1,547.50 would gainsay this outlook. Yes, that does mean this is a low risk place to buy gold. The SILVER PRICE 5-day chart shows a double bottom with today's low at 2648c. Upsurge off that low, beginning about 9:30, was powerful and left gaps behind. Silver keeps on refusing to stay down, a very good sign, plus the premium on 90% silver coin remains high, signalling strong physical demand. Yep, I'd buy silver here, too. Stocks -- Hogwash. Hogwash. Either its hogwash, or I am too durned dumb to understand, and I will admit that ever looms a possibility. These stocks which investors have been misled to believe profit from central banks' inflating -- fell and the dollar rose on FOMC notes revealing that the criminals running the Fed are leaning toward more inflation. Y'all explain this to me, cause I am simply too thick headed to get it: the Fed is going to print more dollars, so the value will surely erode, but people are rushing to buy them? This is the same sort of broken logic that a man with a stick uses to fight off a nest full of hornets he has disturbed. He's got it ALL wrong if he thinks standing and fighting with hornets is a workable plan. But Mercy! When you cheapen a nation's currency for 10 decades, and erect institutions like central banks and government agencies whose sole purpose is to feed like tapeworms off the public or enable other parasites to feed, is anybody surprised when the ability to think is cheapened, too? They already take PAPER as money, and believe it is. How goofy is that? Something's at work here and I'm not sure what, but I suspect it bodes well for silver and gold. For two days silver has finished higher while gold dropped -- that's more than a little unusual. Then too, today's attacks on gold left it in the triangle and bloody but unconquered. Maybe time is running out for the Central Bank Masters of the Universe. Scrofulous US dollar index finally broke through 83.50, but without much enthusiasm. It rose 19.3 basis points to 83.624, up 0.25%. For the next few days that ought to leave the dollar out of breath, although breaking through 83.50 today hints that the dollar will rise further. As always, however, it must confirm by moving higher soon. Downside it must not fall under the 81.52 line. Scrofulous yen rose 0.61% today to 126.16 cents per 100 yen (Y79.26/US$1). Changed nothing on its downward trending chart, and leaves it below the 50 day moving average (125.76). Scrofulous, pustulous euro dropped 0.27% today to close $1.2205, by way of a new low at $1.2167. Just seems nothing the Eurocrats do works any improvement -- bail out Greece, bail out Spanish banks, bail out Spain -- their boat just keeps on sinking, no matter how fast they bail it out. A reader asked me which fiat currency he should buy if getting out of euros -- NONE! I said. Yen, dollar, euro, they're all rotten. Use those fiat currencies to buy silver or gold while people are still willing to accept paper and electrons for real stuff. I don't want to hurt anybody's feelings, but stocks just keep on looking sicker and sicker. The cardboard Dow lost 31.26 today (0.25%) to end at 12,573.27. That sounds like poor performance until you learn that it hit its low early in the day at 12,492. Climbing back up to almost unchanged was a victory of sorts. It won't last, though. Dow is chipping at recent support (since June) and threatened to pierce it today. 200 DMA and the last low are both at 12,450, so when the Dow crosses that line it will blow a foghorn that will scare every rat off the ship, 'cept the deaf ones. S&P500 don't look that good. Lost 6.69 (0.5%) today to 1,334.76. Only safety net below is the 200 DMA at 1,306.60. Sorrow waits in the not distant future. 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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| Three Gold Charts: Ignore Them At Your Risk Posted: 12 Jul 2012 03:14 PM PDT The 5 min. Forecast July 12, 2012 11:01 AM Dave Gonigam – July 12, 2012 [LIST] [*]$2,000 gold inside of a year: Three charts that show the yellow metal is still an “underowned” asset [*]Stocks fall, dollar rises: Summing up three central bank disappointments [*]Inside the squirrel cage: Byron King reconciles Peak Oil with the shale bonanza [*]Starting an argument where none exists… a reader inquiry on “going Galt”… a hang-the-bankers suggestion from an unlikely source… and more! [/LIST] Gold sits at $1,557 this morning… down 19% from its high last September. But two renowned experts see the metal reaching new highs within the next 12 months… if not sooner. Canadian resource investing legend Eric Sprott is calling for gold to set a record before year-end. “I just can’t imagine the demand for gold is going down,” he tells Bloomberg. “I don’t personally see a solution to the problem that we&...
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| Libor Is Not the Only Manipulated Economic Number Posted: 12 Jul 2012 03:01 PM PDT The Telegraph noted Monday:
Mainstream commentators are starting to publicly discuss manipulation in the precious metals markets. See this, this and this. Avery Goldman noted last year:
ETFs, bullion banks, storage facilities and other holders of gold that are "self-certifying" - without any checks by third party auditors - have been caught misreporting and raiding even allocated precious metals accounts, and using the loot to speculate or pay off other debts. As such, manipulation in the self-certifying portions of the oil and gold markets could have a huge impact on assessing the true health of financial institutions, the economy as a whole, and the assets of individual investors. There have also been allegations that the self-certifying derivatives indicator - iSwap - has been massively manipulated. See this and this. Indeed, given the massive fraud committed by the big financial players over the course of many years - and the shear scope and audacity of the Libor scam - it is safe to assume that most self-certifying markets are gamed. Postscript: Of course, even when there are third-party auditors, many of them are in on the fraud as well. And many accuse government personnel of inaccurate reporting concerning such fundamental numbers as unemployment, (and see this and this), bank debts, inflation, gpd, and money supply. Indeed, the U.S. and British governments seem to have encouraged interest rate manipulation. The problem is not just giant, corrupt corporations. Nor is it just giant, corrupt government. It is the the malignant symbiotic relationship between government and corporations against which people worldwide are struggling.
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| Posted: 12 Jul 2012 02:55 PM PDT by Jim Willie CB July 12, 2012 home: Golden Jackass website subscribe: Hat Trick Letter Jim Willie CB, editor of the "HAT TRICK LETTER" Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy. In recent public articles, the USTreasury Bond bubble was described, supported by Interest Rate Swaps to produce artificial demand and to cre...
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| Gold Seeker Closing Report: Gold and Silver End Mixed Posted: 12 Jul 2012 02:50 PM PDT Gold fell $21.70 to $1554.90 at about 11AM EST, but it then shot back higher in the last five hours of trade and ended with a loss of just 0.31%. Silver slumped to as low as $26.456 before it also rallied back higher and ended with a gain of 0.3%.
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| How Health Care Can Cost So Much, Despite Technology Posted: 12 Jul 2012 02:14 PM PDT Synopsis: The truth behind why healthcare costs are rising despite advances in technology. By Alex Daley and Doug Hornig Last week, amongst the hundreds of emails that fly around our offices each day, came a small and seemingly inconsequential story about an aspiring politician named Chris Collins, who is gunning for a seat in Congress representing his Buffalo suburb of Batavia. According to the clip, Collins basically told a local news outlet that cancer has been cured. The press and bloggers latched on to a single quote from Collins that was featured on a tiny local news site, The Batavian. He said: "People now don't die from prostate cancer, breast cancer and some of the other things." The predictable jokes and rants ensued. In all fairness to Collins, that quote was taken well out of context. He went on to make a point about the rapid increase in quality of care that we've seen in the past few decades, thanks to technology, and wondered whether some of the cost increase in health care might be attributable to that success. He continued on to say, "The fact of the matter is, our healthcare today is so much better, we're living so much longer, because of innovations in drug development, surgical procedures, stents, implantable cardiac defibrillators, neural stimulators – they didn't exist 10 years ago. The increase in cost is not because doctors are making a lot more money. It's what you can get for healthcare, extending your life and curing diseases." Whatever you might think of his political leanings – he believes Obama isn't spending enough on Medicare and wants to tariff China – he does have a bit of a point on the advances in medicine. There are many things we can do today, thanks to technology, that weren't even possible just a few years ago. But that got me wondering: just how much of a point does he have? Is the runup in healthcare costs really a result of how many new treatment options we have? Or have costs increased for other reasons? There is absolutely no doubt that medical care has improved in the last few years. That change may not universally reach everyone who might benefit from it nor be evenly distributed across the conditions that ail us – certainly many suffer today just as much as they always have. Still, on what we scientists might refer to as the "upper bound," what's possible to do with medicine today is multiple orders of magnitude greater than it was in, say 1972... just 40 years ago. That date is about when the computer revolution started to take hold and turn upward. Sure, they'd been invented decades earlier, but it wasn't until the '70s that computers started to become common in commerce and industry. And the story since then has followed one clear path forward: increasing capabilities at an ever-plummeting cost. The result is that I can now do more on my smartphone – which cost a mere $200 – then I ever could have thought of doing on a $2,000 computer just a decade ago. So why hasn't the same happened in health care? In many ways, it has. However, much of the change in spending is a result of the outcome and not of the inputs. Consider, for a second, just how long we now live… Are We Really Living That Much Longer?It is easy to dismiss the days of people's lives spanning a mere three decades as prehistoric. But it wasn't really that long ago. Consider that according to data compiled by the World Health Organization, the average global lifespan as recently as the year 1900 was just that, 30 years. In the richest few countries on Earth at the time, the number rarely crossed 50. However, it was just about that time that public health came into its own, with major efforts from both the private and public sectors. In 1913, the Rockefeller Foundation was "looking for diseases that might be controlled or perhaps even eradicated in the space of a few years or a couple of decades … Technical approaches also tended to yield immediately quantifiable results that justified equivalent expenditure of funds." The result of this concerted public-health push included nearly eradicating smallpox, leprosy, and other debilitating or deadly diseases. It also included vaccines against the six killer diseases of childhood: tetanus, polio, measles, diphtheria, tuberculosis, and whooping cough. A simple graph illustrates the dramatic change.
(Click on image to enlarge) In the US, the average lifespan is now 78.2 years, according to the World Bank. In many countries in the world it is well over 80. But the story isn't so simple. Like all averages, it's affected mainly by the extremes. And in the early part of the 1900s, the data point that weighed most heavily on average lifespans was child mortality. Not the least of the reasons why families were much larger then is that parents routinely expected some of their children to die.
(Click on image to enlarge) But the flip side, as can be seen in the graph, is that for anyone lucky enough to survive childhood at the turn of the last century, life expectancy was not that much lower than it is today. For all of our advances in medicine, we only live about 20 to 30% longer. Not only is the increase quite small – relative, say, to the explosion in computing power over the same period of time – the amount of money we spend adding another year or two to the average lifespan is on the rise. In other words, each additional day we live costs more than the one before it. And, as with compound interest, the effect is amplified over time. In essence, we have picked much of the low-hanging fruit from the tree of life. So if, absent high child mortality, we are not living all that much longer today than we once were, where does all the money we spend watering that tree actually go? We can get a glimpse of the answer in the following graph. Intuitively, one would think that there should be a relationship between the economic wellbeing of a country and the life expectancy of its citizens. And, as you would imagine, there is a strong correlation between wealth and health.
(Click on image to enlarge) The important takeaway from this graph is the flattening of the curve along the top. What it means is that many countries with lower GDPs (and, consequently, less to spend on health care) can attain life expectancies in the 65-75 range. Pushing them higher than that, as the richer countries do, clearly requires much greater resources. By implication, that means spending more to do it. The cost of battling the diseases of adulthood rises dramatically with age. How much so? Well, per capita lifetime healthcare expenditure in the US is $316,600, a third higher for females ($361,200) than males ($268,700). But two-fifths of this difference owes entirely to women's longer life expectancy. For everyone, nearly one-third of lifetime expenditures is incurred during middle age, and nearly half during the senior years. And for survivors to age 85, more than one-third of their lifetime expenditures will accrue in just the years they have left. Technology, contrary to most popular opinion, often helps to bring these costs down. To take a simple example, an MRI may seem expensive on the surface, but it accomplishes things that previously required a much heavier investment in time and diverse professional expertise. Or consider how a company like NxStage Medical has revolutionized the delivery of renal care. The company's home-based units save a ton of money compared with the traditional, thrice-weekly visits to a special dialysis clinic. But the primary problem is that, overall, medical costs continue to rise faster than improved technology can serve as a countervailing force. There are three easily identifiable reasons for this:
The Law of Decelerating ReturnsTechnology in most arenas is a field of rapidly increasing marginal return on investment, i.e., accelerating change. Things don't just get continually better or cheaper; they tend to get better or cheaper at a faster rate over time. There is a simple concept in finance, hard sciences, and any sufficiently quantitative field – anywhere that numbers dictate behavior – called "economies of scale," and it mainly refers to the idea of changing returns over time. We refer to these as "marginal returns." Imagine for a moment that you are a manufacturer. Once you've paid off the cost of your factory or equipment – your "fixed" costs – you maybe make a widget to sell for $10, with a cost per unit of $5. If you make and sell a thousand units, you make $5,000 profit. That is the marginal return. But now imagine that if you make 100,000 units, your costs per unit drop to $4 – you have more negotiating power over your raw materials suppliers, you can run your staff with less slack, etc. And if you can make 200,000 you save/make another dollar. That means you have increasing or accelerating marginal returns. We're used to that in technology. Every year Intel is able to lower the costs of the processing power it sells on the market. Making the chips becomes easier with time and scale, although there is fierce competition from companies like ARM Holdings and Taiwan Semiconductor to take some share. Fortunately for Intel, a chip is a commodity product, it's the same for nearly all consumers, and the market is global. (Not to mention the small need for highly trained service practitioners, the lack of spoilage, and other nice benefits of dealing in circuit board technology.) But medicine is not quite the same – at least not in the most important instances. Sure, an aspirin pill is relatively cheap (inflation adjusted, the price of about $7 per 100 pills has held steady for decades) because it reaches a massive audience, it can be shipped globally, and no one pill is different than another. However, there is no universal medical cure. While a computer can solve virtually any math problem, begetting everything from spreadsheets to video games, Lipitor is applicable only to a single condition and only optimal for a subset of the human race. Nor can one doctor treat a wide range of diseases. They're forced to specialize. Moreover, they usually only see patients from within a certain physical radius; they must undergo never-ending education and certification; they practice in expensive buildings; and they require complex equipment used only by a handful of fellow specialists. There are few places to find so-called economies of scale. Treatment DifficultiesThe simple fact is that, in our self-centered zeal to live to the age of 20, we have made a trade-off. We've left behind the diseases of youth – diseases that mostly strike once, resulting either in death or fading chances of a long life – but they've been replaced by a host of new chronic diseases. Diseases of age. Diseases of environment. And diseases of design. These conditions – such as diabetes, ischemic heart disease, and yes Mr. Collins, cancer – are all much more complicated than their predecessors. First, none is caused by a single, easily identifiable agent. There's no virus to isolate and eradicate. There's no pathogen sample to convert to a vaccine. These are diseases born of the complexity of our bodies, and the built-in difficulty of keeping the most complicated and mobile of all computers running for many decades on tuna sandwiches and OJ. While deaths from most infectious diseases – other than AIDS and a few other key conditions – are expected to drop rapidly, deaths from strokes and other ailments of age and environment, heart disease, and cancer continue to rise (although some great strides are being made in certain types of cancer, such as basal cell carcinoma and lymphoma).
(Click on image to enlarge) These conditions cost considerably more to treat than the traditional infectious disease does. More labor is involved. More time. And available drug treatments rarely cure in a few doses, if ever. Chronic conditions breed chronic costs. Of course they do, that's their nature. Keeping someone with lung cancer alive for twice as long as would have been the case 30 years ago is a great feat, but it comes at considerable additional cost in terms of the time devoted by the many healthcare professionals involved. (And that means troubling questions like this must be asked: If every patient can live twice as long, but it takes twice as many people-hours net to care for them, has there been a net gain for society?) The Driving ForceOur medical progress has been won through a major increase in net costs per person. In 1987, US per capita spending on health care was $2,051. That's $3,873 in 2009 dollars. But in 2009, actual spending amounted to $7,960 per capita. Why? Some of that is attributable, pure and simple, to rising costs that have outpaced inflation. In 1986, the average pharmacist made $31,600, or $66,260 in 2012 dollars. Today, their real average salary is $115,181, nearly double. On the other hand, it's not universal. Radiologists, for example, have seen their salaries drop from an inflation-adjusted $425,000+ to $386,000 in the same period. Also, costs for surgeries and diagnostics are not a clear-cut contributor. Data are hard to compile as costs vary greatly, even in one region (California recently saw charges for appendectomies in the range of $1,500 to $180,000; in Dallas, getting an MRI at one center can be more than 50% more expensive than another across town). Most indications seem to point to lower, not higher, real costs over time for most common conditions. Average hospital stays post appendectomy have fallen from 4.8 to just 2.3 days in the past 25 years, for instance, thanks largely to insurance requirements, as well as better sutures, pain medicines, and surgical equipment. As hard as procedural costs are to compare, the outcomes are much more clear cut. In cancer, which Mr. Collins refers to specifically, the improvement has been significant in some cases and less dramatic in others. For those diagnosed with cancer in 1975-'77, the five-year survival rate was 49.1% (and only 41.9% for males). For those diagnosed between 2001 and 2007, five-year survival increased to 67.4% for both sexes and jumped to 68.1% for men. Even if you're diagnosed when over age 65, you have a 58.4% probability of living another five years. Prognoses, however, vary widely with disease specifics. If you contract pancreatic cancer, for instance, your prospects are the grimmest. It's likely to be terminal very quickly. Among the most recently diagnosed cohort, a meager 5.6% survived for five years. That's more than double the rate from 30 years ago, but small comfort. Liver cancer sufferers' five-year survival rate has more than quadrupled, but only from 3.4 to 15%. Lung cancer is also still a near-certain killer. In the 2001-'07 group, a meager 16.3% survived for five years, only a slight tick up from the 12.3% rate of 30 years ago. Brain cancer is quite lethal, as well, with only 34.8% surviving for five years today, more than 50% better than the 22.4% rate of 30 years ago, but not great. Longer survival rates are, of course, impossible to document in recently diagnosed patients, since we're not there yet. But to give you some idea, here are the 20-year survival rates for the above cancers, taken from the NCI's 1973-'98 database: pancreas, 2.7%; liver, 7.6%; lung, 6.5%; brain, 26.1%; breast, 65%; and prostate, 81.1.%. These are big steps forward, no question. They enhance not only the length but the quality of life, as well. However, with each rising year of average age, we increase our medical expenses rapidly. When we eradicated the big childhood killers, we solved most of the easy problems. As a result we all live longer. And we all live to face the much more complicated and much more expensive to treat diseases of age. At that point, it isn't lifestyle changes that are keeping us alive – It's machines and doctors and medicines doing a lot of the heavy lifting in order to grant us those precious extra days. It's the Hippocratic Oath writ large: physician, thou shalt do whatever it takes to prolong life, no matter the price. All of that costs money, and lots of it. Mr. Collins is right, in a manner of speaking. We are not dying of the most dreaded ailments as quickly as we once were. But that's not due to much in the way of real advances in curing the major chronic illnesses of our time – heart disease, diabetes, cancer, and AIDS. The truth is that we've primarily extended the amount of time we can live with them. Mexico's health minister, Dr. Julio Frenk, noted the irony here when he said, "In health, we are always victims of our own successes." We are living longer... and we're costing a lot more in the process.
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| Sprott Sees Record Gold Price in 2012 on Debt Weight Posted: 12 Jul 2012 02:07 PM PDT July 12 (MoneyNews) — Gold will climb to a record by year's end as the global economy slows from the weight of too much debt, says Eric Sprott, the founder and chairman of Canadian fund manager Sprott Inc. "I just can't imagine the demand for gold is going down," he said in a July 9 interview at Bloomberg's Toronto office. "I don't personally see a solution to the problem that we're in, the financial leveraging issue that we all have where everybody wants to shed debt and there's no buyers." The metal "should go to new highs before yearend, that would be my guess," said Sprott, 67. "Gold has blown away every financial market in the world since 2000, let's not forget that."
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| Gold Daily and Silver Weekly Charts - Raid Gets Stuffed As Silver Shines, Benny Aurophobic Posted: 12 Jul 2012 02:06 PM PDT |
| High Government Deficits "Crowd Out" Stock Market Returns Posted: 12 Jul 2012 01:44 PM PDT “Crowding out” is an obscure term if you're not an economist – but this replacement of the private sector economy with government spending may end up being one of the largest determinants of your standard of living during retirement. The investment problem is that the past, present and likely future of the US economy is one of rapidly growing government spending. Because the investment models that drive conventional financial planning assume a rapidly growing private sector, this sets up a fundamental competition between government growth and private sector growth for their shares of a single economy, and may lead to a collapse of stock market values and conventionally invested retirement portfolios.
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| Erskine Bowles: ‘We Are Going Over the Fiscal Cliff’ Posted: 12 Jul 2012 01:36 PM PDT July 12 (ABC News) — "I think if I had to tell you the probability, I'd say the chances are we are going over the fiscal cliff," Bowles said. "I hate to say it, but I think that's probably right." Bowles, whom Obama appointed, along with Simpson, to create a bipartisan debt-reduction plan, said today that because debt reduction was "politically painful" and "really tough," it was not likely Congress and the president would make the tough choices to reform entitlements, cut spending and simplify the tax code, as the Bowles-Simpson plan suggests. "I think that if we don't get these politicians to come together we face the most predictable economic crisis in history," Bowles said during this morning's interview in Sun Valley, Idaho. "I think it's absolutely clear that the fiscal path we are on is not sustainable, and for me, the best analogy is these deficits are like a cancer, and over time they will destroy the country from within." Bowles said that "every nickel" the country brings in each year only paid for interest on the debt and mandatory spending on entitlement programs, such as Medicare, Medicaid and Social Security. "What that means is every single dollar we spent last year on these two wars, national defense, homeland security education infrastructure, high value-added research, every dollar was borrowed and half of it was borrowed from foreign countries," he said. "That is crazy. Crazy! It's a formula for failure in any organization."
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| Extreme Danger Signs, U.S. Econcomy Galloping Recession, Brewing Gold Allocated Accounts Scandal Posted: 12 Jul 2012 01:27 PM PDT In recent public articles, the USTreasury Bond bubble was described, supported by Interest Rate Swaps to produce artificial demand and to create an illusion of a flight to safety in toxic USGovt Bonds. A Black Hole phenomenon was described, which will suck the capital life out of most assets, celebrate the USTBond rally, and accelerate the recession in the USEconomy. Numerous endgame signals were described, all alarming in their own right, not a single signal being from the realm of normalcy. Extreme danger is the warning. This week consider just a handful of danger signposts, all screaming loudly of systemic breakdown. They are all deeply disturbing signposts that complement the endgame signals with a scattered pox of symptoms on the landscape. The Jackass is firm and rigid in maintaining that ugly forecast made in late 2008, dismissed by many as foolish and off the mark. No longer.
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| Posted: 12 Jul 2012 01:03 PM PDT Today's AM fix was USD 1565.50, EUR 1281.10 and GBP 1011.96 per ounce. Yesterday’s AM fix was USD 1576.50, EUR 1284 and GBP 1012.91 per ounce. Gold gradually ticked lower in Asian trading and has seen further slight weakness in European trading. Still robust physical demand is supporting gold at these levels and strong support is at the $1,500/oz level.
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| The War Between Manipulation and Buying Posted: 12 Jul 2012 12:52 PM PDT **Originally posted July 6, 2012** My Dear Extended Family, Next week is the war between manipulation of gold by the West, and appetite for buying gold in the East, both from friendlies and enemies. Anyone that does not see today's gold market as a rig is blind or brain dead. There is a Continue reading The War Between Manipulation and Buying
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| Fleckenstein - Central Banks & The Fed Are Close To Panic Posted: 12 Jul 2012 12:35 PM PDT  Today Bill Fleckenstein told King World News, "...the central banks of the world, and in particular the Fed, are close to where they are going to panic and do something big." Fleckenstein, who is President of Fleckenstein Capital, also said, "What I am salivating over is the chance to really press my gold position. I think the next leg is going to be really, really powerful." Here is what Fleckenstein had to say in what turned out to be a very powerful and timely interview: "This all-paper experiment started in 1971, when Nixon closed the gold window. We had horrendous inflation in the 70s, Volcker came in and saved the day, and created an environment of credibility whereby Greenspan could ruin things for the next 20 years. He (Greenspan) then passed the baton to Bernanke, who is continuing the ruination."
This posting includes an audio/video/photo media file: Download Now |
| The ?80-20 Rule? Suggests Gold Will Reach $8,300/ozt in Spring of 2015! Posted: 12 Jul 2012 12:26 PM PDT The “Pareto principle” – it’s often referred to as the “80-20 rule” -*states that 80% of the effects of something come from just 20% of the causes (that is that*80% of people control 20% of the wealth, that 80% of sales come from 20% of your customers, etc.) and a new report by Erste Group, the Austrian investment bank, says this principle can be applied to bull markets as well, including the current bull market in gold, and following this line of thinking, you get an $8,300 price target for gold by the spring of 2015. Words: 285 So*reports Matthew Boesler ([url]www.bisinessinsider.com[/url]) in edited excerpts from his original article*. [INDENT]Lorimer Wilson, editor of [B][COLOR=#0000ff]www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor's Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.[/COLOR][/B] [/INDENT]Boesler goes...
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| The Telegraph: The Price of Gold Has Been Manipulated. This is More Scandalous Than Libor Posted: 12 Jul 2012 11:45 AM PDT "It was nice to see some media exposure for the gold price management scheme show up in The Telegraph yesterday." ...
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| Posted: 12 Jul 2012 11:41 AM PDT London Gold Market Report from Adrian Ash BullionVault Thurs 12 July, 07:25 EST The WHOLESALE BULLION gold price continued to weaken Thursday morning in London, dropping to new 2-week lows beneath $1565 per ounce on what analysts called "disappointment" over the latest monetary policy minutes from the US Federal Reserve. Asian and European stock markets fell hard, while wheat and corn prices again bucked a further drop in the commodities market. Following the US Fed minutes – which showed only a "few" policy-makers wanting to expand the central bank's quantitative easing money creation scheme – the Euro currency today dropped to its lowest level since June 2010 below $1.21. Silver bullion also gave back the last of July's rally to date, trading down to $27.75 per ounce. "We are still confident that the current slide in the price of gold is nothing more than a temporary weakness," writes Commerzbank's head of commodity research Eugen Weinbergin Frankfurt today. "The hi...
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| Old gold often erroneously sold below market price Posted: 12 Jul 2012 10:45 AM PDT Lately financial media have been describing how resourceful gold buyers are taking advantage of many of their clients' lack of gold knowledge. In most cases, these clients are elderly and retired ...
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| Fed Disappoints, and Risk Assets Get Sold Posted: 12 Jul 2012 10:17 AM PDT Good day. The FOMC meeting minutes were the cat's meow for the markets yesterday, and boy, did they come away feeling as if someone just stole their puppy! Once again, the Fed has disappointed the markets, which, for some reason, thought for sure the FOMC meeting minutes would give them reason to believe that more stimulus was coming. I tried to warn them; if they had only read yesterday's Pfennig, they would have known that Chuck said the meeting minutes were stale, for they took place a full week ahead of the jobs jamboree disappointment. But acting as if they were just left at the altar, the markets took their fury out on the risk assets, and they took no prisoners. The euro (EUR) lost ground, the Australian dollar (AUD) lost over a cent and gold lost another $10. I just don't get these trader guys (and gals). What the heck do they want? I know what they want, but do they "really" want that? They think they want more stimulus, that the market can't function without it. But in reality, they want to be right – they want to be able to say, "See, I called this stimulus, and I was right!" Never mind the damage that the stimulus actually does to the country's balance sheet. I was sitting at the desk yesterday, watching the euro losing footing it had gained overnight once again, and began to think about what I had said at the start of this year: "I wouldn't be surprised to see the euro fall to 1.18, or rise to 1.40 this year." I think the first part of that thought is about to come true, folks. Here's why I think that way. Remember the eurozone summit, which took place a couple of weeks ago? The eurozone leaders surprised the markets by actually coming up with a plan, and a new suggestion to use the ESM (European Stability Mechanism) for recapitalizing the troubled Spanish banks. And the euro found some terra firma, but not much, and soon that gained ground was lost. Now it's been two weeks since the meeting, and nothing really has come of it. Now we learned the other day that 12,000 complaints have been filed in the German Constitutional Court (GCC) against using the ESM that way. It's going to take the GCC most of the summer to get through everything and make their decision. That's just too long for the markets, folks. In addition, summer is normally a slower time in the markets, especially in August, when most of Europe goes on holiday (vacation). The exception to that was last summer, when the U.S. debt ceiling debacle unfolded, giving everyone in the markets the willies toward the U.S. dollar. Now — when a few months ago, I thought that the U.S. election campaign would focus on the debt, and the debt ceiling issue will be revisited in August or September again — the euro would be saved, for the moment, from revisiting 2005 levels of 1.18. But, from what I'm watching on TV, the election campaign is going to focus on jobs, so out the window goes the knight on the white horse for the euro this summer. I've gone on pretty long here with regards to the euro, but since it is the offset to the dollar, it's important, folks. But there you have it — Chuck's thoughts on the euro for this summer. And since I'm in such a dour mood on the euro this morning, I might as well get this out there too. Yesterday, I mentioned that someone sent me a note about the Aussie dollar (A$) being overvalued. I'm reading more and more research reports calling for the A$ to get downsized as China bottoms out and struggles to regain their economic prowess. They all make sense to me, except what if China takes the bull by the horns and really turns their economy around, as they did in 2008? Of course, that will take three or more months to confirm, so until then, we could be looking at cheaper levels to buy A$s. So as an A$ holder, you could very well take profits and look to buy cheaper, or just batten down the hatches. Why does it feel as though the dog days of summer for the currencies and metals are right here, right now? Because that's what's happening! I wish I could tell you something different than this, but as I say all the time, "it is what it is." This morning, eurozone industrial production printed for May and showed an increase of 0.6% versus April, with Germany providing the cushion for all the countries posting negative numbers. And while May's number is good, it's May's number – that's right, it's two months old! I just don't get why it takes so long for data to print! The other problem with the number is we could average out April and May's IP, and it would still be 0.9% below production levels of the first quarter. So the slowdown in the eurozone continues to extend its roots. And the forecasters in Australia were right for once, as they had forecast no job growth for Australia in June, and in fact it was negative, with June's job losses wiping out May's job gains. This was much weaker than expected or forecast, and it weighed heavily on the A$ as the night went along. It's almost like a perfect storm for the A$, because now it will have to deal with the China second-quarter GDP report that will print tomorrow. I've already told you how it is widely expected that China's second-quarter GDP will be very weak. But again, let me go through this for those of you who missed class yesterday. All those that attended can skip to the next paragraph — that is, unless you need a review. OK, the Chinese economy probably bottomed in the second quarter, which means this GDP report is going to be ugly, folks, and the knee-jerk reaction to sell the A$ will be strong. But everyone needs to calm down here. As I said above, the GDP report is old, and if the Chinese economy actually is rebounding in the third quarter, then what good is it to sell Aussie dollars now, on an old report? All right, I've spent quite a bit of time on the euro and A$ this morning. And China! What about the other guys? Let's see… the Japanese yen (JPY) is a bit stronger this morning, nothing to write home about, and the rest are following the euro and A$ down the road to the woodshed. The Bank of Japan (BOJ) also disappointed the Japanese market watchers by holding back on more stimulus. So it's the season of disappointment for the markets. I have to say that I'm somewhat impressed that the central banks, mostly the Fed, have held back on their feeling that the economy can be saved with stimulus. But they will revert to that feeling soon, folks, so don't go giving Big Ben Bernanke any gold stars now. Speaking of Big Ben, yesterday, the FOMC meeting minutes noted that a "few members were for adding more stimulus." I said to the boys and girls on the trading desk that "all of the members could feel that way, but unless Big Ben feels that way, no stimulus will be implemented." Yes, this Fed is run just like Big Al Greenspan's Fed. It's pretty much like here on the trading desk. I remind the people here, from time to time, that this is a benevolent dictatorship, and I can remove the benevolence at any time! HA! The third California city has filed for bankruptcy and is seeking protection. San Bernardino was the latest to file. And why isn't this big news? I've pointed to California's debt problems for over two years, and still everyone is fixated on Greece. The problems for San Bernardino aren't just confined to payroll, benefits and pensions. Nearly half of the homeowners in the city, who own more on their mortgages than their homes are worth, are increasing the risk that they will default on their loans. But it's all about Greece or Spain or whomever, right? The last time I checked, California was the eighth-largest economy in the WORLD! I don't think you would see Greece in the top 100. But just like things in Greece, things in California aren't a problem, until they are a problem — sound likes a Yogi-ism, but it's true. One day, investors and traders decided that things weren't good in Greece, which for years was able to issue debt at the same yields as Germany, and then one day they couldn't. It will be the same for the U.S., and to further this discussion, just wait until the government gets their hands into the California foreclosure problem and acts as if they know what they are doing. Then There Was This… Federal Reserve Bank of St. Louis President James Bullard said the U.S. fiscal position is as weak as some euro-area countries,' and lawmakers must take "dramatic" measures to tackle it and restore confidence. "The U.S. fiscal situation is similar to that of some countries in Europe and requires dramatic and sustained attention," Bullard said in a speech in London. "The political compromise in the U.S. has been to delay action until after the November election, but markets tend to pull the uncertainty forward." Chuck again. Bullard went on to say something that I thought I would never hear from a Fed head. Let's listen in: "Increased government spending today, followed by higher future taxes, is not likely to produce more rapid growth. The most-likely way forward continues to be a long period of debt paydown and sluggish growth, both in Europe and the U.S., and that the most-pressing policy issue is to accept this path and prevent any additional problems from developing." Are you kidding me? Did a Fed head actually say a long period of debt paydown and sluggish growth? Why, yes, Chuck, he did! James Bullard gets a gold star! To recap… The FOMC meeting minutes, although they were stale, disappointed the markets, and the markets took their fury out on the risk assets. The euro has fallen below 1.22 for the first time in some time, and Chuck gives us his dour outlook for the euro this summer. Eurozone industrial production was strong in May, but not as strong as the month reports from earlier in the year, thus confirming the economic slowdown of the eurozone. June job losses in Australia wiped out job gains in May, and the A$ has lost over 1 cent overnight. Chuck Butler Fed Disappoints, and Risk Assets Get Sold originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?".
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Today Bill Fleckenstein told King World News, "…the central banks of the world, and in particular the Fed, are close to where they are going to panic and do something big." Fleckenstein, who is President of Fleckenstein Capital, also said, "What I am salivating over is the chance to really press my gold position. I think the next leg is going to be really, really powerful." Here is what Fleckenstein had to say in what turned out to be a very powerful and timely interview: "This all-paper experiment started in 1971, when Nixon closed the gold window. We had horrendous inflation in the 70s, Volcker came in and saved the day, and created an environment of credibility whereby Greenspan could ruin things for the next 20 years. He (Greenspan) then passed the baton to Bernanke, who is continuing the ruination."
HAI: We haven't seen gold rally this year, despite all the negative headlines from the eurozone and even here in the U.S. This is in contrast to last year, when gold climbed relentlessly to its record high above $1,920 amid similar bad news. Why is gold behaving differently this time? Has it lost its safe-haven status?
It seems another 
Gold will climb to a record by yearend as the global economy slows from the weight of too much debt, says Eric Sprott, the founder and chairman of Canadian fund manager 
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