Gold World News Flash |
- Beer, A Reflection Of The World Economy?
- 8 Simple Budgeting Strategies to Survive Hard Times
- GATA, SHAKA ZULU, And The Coming Gold/Silver STORM!
- Got Gold Report – July 29, 2012
- Silver Update 7/29/12 The Last Bubble
- Mogambo Sure-Fire Defensive-Posture Bunker (MSFDPB)
- Keep a Close Eye on Gold Prices Next Week
- Does the Fed really monetize government debt?
- Is The SP 500 Index Targeting 1500?
- Eurogroup Head Confirms "It Has Become Serious", As He Is Back To Lying
- Cyclical Convergence
- View From The Bridge: Going For Gold
- Hathaway - We Are About To See $100+ Up Days In Gold
- What Will the Outcome of All the QE Mean for the U.S. (and the World)?
- Ronald Reagan – Nomination Acceptance Speech of 1980
- Why the Financial System Could Collapse
- Central Bankers Choice Between Deflationary or Hyperinflationary Depression
- Twitter Weekly Updates for 2012-07-28
- Why a decline of “the Facebook” shares by 47% proves you can never trust a bank
Beer, A Reflection Of The World Economy? Posted: 29 Jul 2012 11:15 PM PDT from Testosterone Pit.com:
The bad news was regional. In most developed countries, production dropped. In the US, it edged down 1.6% last year and 5.7% since 1990—despite a significant increase in the population. In Germany, it stabilized recently, but had plunged 20.5% since 1990. Production in the UK had skidded 27.5% during that time, though it ticked up last year. No glimmer of hope for Japan: production is down 14.7% since 1990, and down 3.6% from 2010, the seventh straight year of declines. Only 442.39 million cases were shipped, the lowest ever in recorded Japanese beer history. | |
8 Simple Budgeting Strategies to Survive Hard Times Posted: 29 Jul 2012 10:20 PM PDT by George Ure and Gaye Levy, Activist Post
The problem with budgeting, though, is it is no fun whatsoever. You get so many dollars set aside for eating, and that's it. So instead of such a dreary approach to food budgeting, George has been noodling some more interesting ways to make ends meet. How about eight simple budgeting strategies? Zero dollar days: This idea occurred to me because on our recent adventuring around the country I was keeping track of our expenses every single day. As a result, I looked at our bank card and checking accounts every day online. What quickly became apparent was the fact that we had a fair number of "zero dollar days" – that is, days when nothing came out of checking or went on the credit card. | |
GATA, SHAKA ZULU, And The Coming Gold/Silver STORM! Posted: 29 Jul 2012 10:00 PM PDT by Bill Murphy, GATA via Zero Hedge: To get right to the point, three quality sources told me three weeks ago that the gold and silver markets were going to take off in August and I have been pounding the table on such ever since. The action in the Gold Cartel suppressed precious metals markets the past few days suggests that surge has already started. [Ed. Note: Here's my recent interview with Bill in which he said much the same.] As part of this surge, it has come to my attention that the nefarious activities of JP Morgan's manipulative short position in the silver market is going to come to light in August, especially since they still have a big problem with that position … and part of it relates to their announced "whale trade loss issue," if what I am told is spot on. The Barclay's Libor scandal has alerted the investment world how manipulated the financial markets really are. The Gold Anti-Trust Action Committee has been sounding off on this critical issue since January 1999. On January 31, 2008, the Wall Street Journal printed GATA's $264,000 full page color ad about the ramifications of the gold price manipulation scheme. We used the words "disaster" and "catastrophe" about what was coming in that very ad. In typical fashion, the press ignored GATA and how prescient we were… | |
Got Gold Report – July 29, 2012 Posted: 29 Jul 2012 09:45 PM PDT
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Silver Update 7/29/12 The Last Bubble Posted: 29 Jul 2012 09:26 PM PDT | |
Mogambo Sure-Fire Defensive-Posture Bunker (MSFDPB) Posted: 29 Jul 2012 09:00 PM PDT by Richard Daughty, MogamboGuru.Blogspot.ca:
But once awake, it seemed to me that it was strangely quiet. And before you ask, the answer is "Yes. It is TOO quiet," which unfailingly means that something bad, usually something VERY bad, is just about to happen, like (as I learned from decades of watching TV) getting attacked with guns and/or arrows. And if not the worst, then something almost as bad, because I happen to know at least the bare rudiments of the Austrian Business Cycle Theory, and I have heard of Milton Friedman, and thus I know what happens when the money supply is hyper-inflated, as has been done in the US and in EU for years and years, explaining why the Mogambo Fearfulness Meter (MFM) is redlined, with the needle pegged. | |
Keep a Close Eye on Gold Prices Next Week Posted: 29 Jul 2012 08:00 PM PDT from Diane Alter, SilverBearCafe.com:
The parade of dismal economic reports both here and abroad has stoked hopes that more stimulus, in the form of a third round of quantitative easing, is imminent. A clear signal of when we can expect QE3 could come at next week's two-day Federal Open Market Committee (FOMC) meeting that starts July 31. An increasing number of Federal Reserve officials are convinced the central bank must expand its stimulus operation immediately amid the recent spate of glum data signaling economic growth has hit a roadblock. Several members will push for urgent action, although some may move to delay a decision until September. | |
Does the Fed really monetize government debt? Posted: 29 Jul 2012 05:46 PM PDT If monetizing debt is understood to mean printing money to pay for government deficits, then the Fed is guilty. The basics are quite simple. The federal government issues and the Fed buys interest-bearing debt certificates. The Fed pays for these securities by creating digits on a computer that represent dollars. In this Age of Ron Paul, more people are learning that the digits do not represent savings borrowed from the public. The Fed is not a financial intermediary; it is a money factory. And while factories under capitalism produce for the benefit of the masses, this factory cranks out dollars for the politically-favored, to the detriment of the masses. The Fed is thus an anti-capitalist, anti-free market institution. The 12 members of the FOMC decide how much money they need and create the digits on-the-fly, from nothing. The idea of Bernanke or other Fed chairmen printing money is a metaphor, but an accurate one. It's simply more convenient for the Fed to create digits than to print money. It might be objected that this is not the equivalent of printing money because fiat money is not an interest-bearing asset. By purchasing government bonds, the argument runs, the Fed collects interest from the Treasury, thus providing an additional windfall for the central bank, which also collects the principal. The government would've been better off issuing a service order to its "money factory" and having it print the amount demanded and avoid the interest payments. In other words, instead of Bernanke creating digits, have Geithner create them. Simply printing money to pay one's debts, though, even when done by a legitimate government, runs the risk of being seen as such. Even eight-year-olds know a counterfeiter is a crook who prints money then spends it. It's always possible kids today would survive government schools to adulthood, still believing the emperor is stark naked, and that could lead to revolution. Most adults, of course, have little interest in where money comes from as long as it buys things at the mall, and most economists have a habit of not biting the hand that feeds them, and thus lend support for an "independent" Fed. If cheating is the goal, what's needed is a circuitous means of printing money to keep the public befuddled and indifferent, and this is the reason for having a central bank. It's true, the Fed collects interest on the government securities it holds, but it gives most of it back to the Treasury. After deducting for operating and other expenses, it pays member banks a 6% dividend on the stock they hold in their reserve banks, which in 2010 amounted to $1.5 billion. (By law, member banks must subscribe to stock in the Federal reserve bank of their district equal to 3% of their capital, at a fixed rate of $100 per share, with another 3% subject to call of the Board of Governors. See here.) The remaining balance of the Fed's interest receipts, including interest from assets other than U.S. bonds, is remitted to the Treasury at the end of each fiscal year. In 2010, this amounted to $79.3 billion. (See the 2010 annual report, pg. 130, Table 4 for details.) Thus by giving the Treasury all the revenue it receives after deducting for expenses and dividends, the Fed in effect is granting the government loans at nearly zero interest. As for the principal, the Fed simply keeps it on their books. It could demand payment from the government, but so far it hasn't. If the Fed ever decides to defend the value of the dollar, unrestrained government as we've known it is doomed. As we can see the government, in issuing bonds, is getting money for virtually nothing, then spending it. As kings of old did when they literally ran the printing presses to pay for expenses beyond what they collected in taxes, today's government does the same but through the esoteric world of central banking. Why would bankers agree to such an unprofitable arrangement? The commercial banks make their profits through the protection afforded by the government cartel of central banking. Fractional-reserve banking has been the norm in banking for thousands of years, but while it can be very profitable it is also subject to instant disaster when banks over-inflate. Under central banking in a fiat paper money regime, member banks inflate at a uniform rate and thus avoid currency drains from other banks and runs from the public. And since money is paper or digits representing paper, the central bank, with its monopoly of the note issue and commodity money outlawed, can generate as much money as needed should problems arise. As cozy as this arrangement is, most bankers don't seem to recognize that central bank inflationary policies ("easing" or "accommodative") will eventually bring an end to their scheme. The money will become so worthless people stop using it. The solution is to separate money and banking from the government, completely and permanently. | |
Is The SP 500 Index Targeting 1500? Posted: 29 Jul 2012 04:44 PM PDT | |
Eurogroup Head Confirms "It Has Become Serious", As He Is Back To Lying Posted: 29 Jul 2012 01:31 PM PDT The insolvent banana continent is back. Recall back in May 2011:
Ergo, things in Europe are very serious again because the Eurogroup's head, who until recently promised he was quitting his post because "he had gotten tired of the Franco-German interference in managing the region's debt crisis", only to spoil the fun and say he was lying about that too, is back to doing what he does best - lying. To wit: "the euro countries are preparing together with the bailout fund EFSF and the European Central Bank to buy government bonds if necessary clip euro countries." And now cue Schauble: "Federal Finance Minister Wolfgang Schaeuble has rejected speculation about impending purchases of government bonds by Spanish EFSF and ECB." From Suddeutsche Zeitung:
And to think only yesterday the only person whose opinion matters, Germany's Finance Minister, "denied plans for a new aid program for Spain, according to newspaper Welt am Sonntag, after the media reported European Union leaders aim for Spanish government bond purchases by the European rescue fund and the European Central Bank." We leave it up to readers to figure out which of the above two is telling the truth, but in the meantime, here are some other soundbites from the man who is back to desperation pleading with markets:
And funniest: "All talk about the emergence of Greece is unhelpful" Of course, it is much better to stick one's head in the sand and avoid the only possible outcome of this tragic farce that the implosion of Europe has become, and truly best to completely avoid any discussion of what happens in case of Plan B. To summarize, from Reuters:
To summarize: i) since the head of the Eurogroup is back to outright refuting what Germany said a day earlier, Europe is once again back to Plan B - lying, which means things are again on the verge of an all out collapse, and plunge in the EURUSD, which, as a reminder, is precisely what the German export industry wants more than anything, and ii) just like in the June 29 summit, beggars are again hoping they can be choosers, and can force Germany, by way of a full blown media onslaught in which they represent that a vague possibility is now a certain outcome, and thus have already set expectations about 5% higher than it would be otherwise, to succumb to the will of the beggars, and allow full blown debt monetization. And like back then, so now, all we can say to the broke periphery, which now apparently include France, but as David Einhorn said, it will take bond traders a little longer to figure it out, is good luck. It will be desperately needed. As an appendix, here is Juncker's hillarious attempt to justify lying to Spiegel magazine at critical inflection points: SPIEGEL: Mr. Prime Minister, you are a Christian Democrat and a Catholic, which is why we want to talk to you about the Ten Commandments.
Juncker: I already have an idea of what you are getting at. SPIEGEL: Are you familiar with the Eighth Commandment? Juncker: Of course. Thou shalt not bear false witness against thy neighbour. SPIEGEL: Apparently you don't take it very seriously. More than two weeks ago, you denied a report by SPIEGEL ONLINE about a secret meeting of several European Union finance ministers to discuss the situation in Greece, even though the official limousines were already pulling up in Luxembourg. Juncker: The most important commandment is not to inflict harm on others. Although it isn't stated quite that way in the Ten Commandments, it follows from them. The finance ministers of several Euro Group nations had agreed to meet on Friday with the president of the European Central Bank (ECB), Jean-Claude Trichet. Because the financial markets in Europe were still open and trading was still underway on Wall Street, we had to deny the existence of the meeting. Otherwise the course of the euro against the dollar, which had already fallen as a result of your report, would have plunged disastrously. SPIEGEL: With this false denial, you not only harmed your own credibility, but that of European financial policy as well. Juncker: And it didn't exactly enhance the credibility of SPIEGEL ONLINE to disseminate the false report that we were meeting in Luxembourg to discuss Greece's withdrawal from the monetary union. SPIEGEL: Forgive us for saying so, but SPIEGEL ONLINE had obtained information to that effect from government sources, as well as a working document prepared specifically for this meeting for the German finance minister. Juncker: It is not unusual for finance ministers to have documents with them that contain all of the issues being discussed in public. And the question of Greece's withdrawal from the monetary union is certainly being discussed in public. But that's a far cry from saying that the issue is on the agenda of a meeting. As a result, I had to be all the more careful to ensure that no unnecessary turbulence would occur in the markets. SPIEGEL: Are you saying that, as a finance minister in the age of global capital markets, you cannot tell people the truth? Juncker: I do not have a ready answer to your question. My main concern is to protect people from detriment. That's why I feel practically compelled to make sure that no dangerous rumors begin to circulate. I'm certainly not going to go to confession because of a false denial. God understands more about the financial markets than many who write about them. ... SPIEGEL: When secret meetings are held and the truth isn't always being told, people gain the impression that there must be something wrong with this Europe. Juncker: People understand perfectly well that politicians have to discuss sensitive issues behind closed doors. I had 10 seconds to decide how to react to the report in SPIEGEL ONLINE. Let us say, hypothetically, that I had said: "Okay, we are having a meeting, but I'm not going to tell you what we intend to talk about." That would have triggered a tsunami in the financial markets. Instead, I chose to produce a small wave of outrage over a white lie. SPIEGEL: Nevertheless, we'd like to try aiming for the truth. and so on | |
Posted: 29 Jul 2012 01:30 PM PDT [B] [/B] Price trends, as indicated by the TDI indicator, are one thing and are certainly very relevant. Pendulum SRA Cycle changes occur within TDI price trends. They represent the pendulum "motion of emotion" of greed and fear as well as a time factor. The higher XAU Pendulum SRA cycles in the weekly and monthly time frames are currently down or flat (monthly here). A key metric and steering mechanism is the weekly SRA indicator (0-100 parameters) as demonstrated in the chart below.[COLOR=#e06666] [/COLOR] [B] [/B] [B]This weekly SRA cycle typically arrives at a low point prior to any positive TDI price trend changes that might occur in that time frame.[/B] [B]In an overall perspective, the confluence of all primary time frame TDI price trends and SRA cycles are likely going to converge (in near proximity) into a real window of opportunity this month or next. [/B]This also applies to Gold, Silver and the XAU since their structure, trends and cycles are quite simil... | |
View From The Bridge: Going For Gold Posted: 29 Jul 2012 12:50 PM PDT Submitted by Clive Hale from View from the Bridge Going for Gold There seems to be some surprise that the opening ceremony was "very British". What were people expecting? Mongolian hordes; Eskimo Nells? The very pointed reference to the NHS being at the centre of British values will no doubt have gone over the head of Andrew Lansley (Secretary of State for Health) and most of the audience, who are blissfully unaware that his cunning plan is to emaciate the service so he has an excuse to privatise it on the cheap for the benefit of his "friends". A tactic Mitt Romney would have approved of along with burying the "special relationship", which he cares little for, as we have no natural resources, our armed forces are dwindling to mere crowd controllers and republicans have no use for a monarch. Having been part of the organising committee for the 2002 US Winter Olympics he may think he has the right to opine on the ability of the Brits to host such an occasion, but as David Cameron said, putting the games on in the middle of nowhere, Salt Lake City, compared to London, bears no comparison. So we have two weeks of sport to take our minds off the global financial malaise. The EU commissars have all gone on holiday, but not before Mario Draghi (ECB Chairman) announced that he will do whatever it takes to save the euro. Really? His statement did knock the Spanish 10 year bond yield back below 7%, but this had become a one way and illiquid trade that was due for break. We have seen it all before with Greece. Denial, denial, denial all the way until days before default restructuring. Talking of which, the Greeks think they are in line for a further handout. Those whirring sounds you can hear in the distance are printing presses knocking out "new" drachma. The question being asked now is, "where are the risk free assets?" In truth there have never been any. Cash has rarely, if ever, beaten inflation and are there any bankers left that you trust? Last week Barclays put aside £450 million to provide for "Lieborgate" claims stating they had no idea what the final figure would be. Try adding a few more "noughts" guys and you might be close. Government bonds always manage to flatter to deceive in the end as inflation inevitably finds its way back into the equation. You will have done very well in gilts over the past two decades (10%+ yields in the early 90s) but at 1.5% now I would hardly call that a risk free investment. The reverse yield gap disappeared a long time ago and equities (and high yield corporate bonds) are touted as the place to go for income but are certainly not risk free either. And do remember that corporate debt is priced as fixed interest on the way up, but like equities on the way down...LTRO 2 a la Draghi or QE3 from Ben's helicopter may help for a while but neither of the previous such operations have had any long lasting effect and there are no logical reasons to believe that a further dose should produce a different result, unless you have been taking the Keynesian medicine from an early and impressionable age. Along with Team GB, I will be going for gold. Not a totally risk free option I grant you as Cav found out in Saturday's bike race. My money is on Bradley for the time trials; he does have a "yellow" jersey to his name after all. | |
Hathaway - We Are About To See $100+ Up Days In Gold Posted: 29 Jul 2012 12:04 PM PDT ![]() Here is what Hathaway had to say: "Hilsenranth, who everybody knows by now is basically a mouthpiece for the Fed, he went quite extensively into what the Fed is thinking about doing, including a round of quantitative easing, putting nominal interest rates to negative levels, and possibly cutting the interest rate on free reserves." This posting includes an audio/video/photo media file: Download Now | |
What Will the Outcome of All the QE Mean for the U.S. (and the World)? Posted: 29 Jul 2012 11:00 AM PDT At the risk of looking/sounding like some crazed religious fanatic usually seen carrying a sign or proclaiming: "Repent, the end is near," I shall avoid the word "repent”. To me, the rest of that proclamation appears accurate and reasonable, at least with regard to our economic condition. [let me explain:] Words: 1896 * So says Monty Pelerin ([url]www.economicnoise.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!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) 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] The U.S. and world economy are near collapse. Sovereign debt, driven by increasingly desperate government interventions, spirals upward at accelerating rates. There is ... | |
Ronald Reagan – Nomination Acceptance Speech of 1980 Posted: 29 Jul 2012 07:00 AM PDT Fifth in a series. Then governor Ronald W. Reagan's acceptance speech for the republican nomination for president at the republican national convention in July of 1980. From a time when there was a clear and unambiguous difference between the two major political parties in the United States, not unlike today. Listen for the important quote by President Reagan of F.D.R. toward the end of the speech and contrast FDR's words then, in 1932, with the democratic party of today.
A few notable quotes: "Trust me government" asks that we concentrate our hopes and dreams on one man, that we trust him to do what's best for us. Well, my view of government places trust not in one person or one party, but in those values that transcend persons and parties. That trust is where it belongs – in the people." Contnued... "As your nominee I pledge to you to restore to the federal government the capacity to do the people's work without dominating their lives." "Government is never more dangerous than when our desire to have it help us blinds us to its great power to harm us." "The first republican president once said, 'While the people retain their virtue and their vigilance, no administration by extreme of wickedness or folly can seriously injure the government in the short space of four years.' If Mr. Lincoln could see what has happened in the last three and a half years he might hedge a little on that statement." "High taxes we are told are somehow good for us, as if when government spends out money it isn't inflationary but when we spend it, it is." On environmental extremism: "The economic prosperity of our people is a fundamental part of our environment." "Can anyone look at the record of (the Carter) administration and say, well done?" "We are going to put an end to the notion that the American taxpayer exists to fund the federal government. The federal government exists to serve the American people." "When we deprive people of what they have earned or take away jobs, we destroy their dignity and undermine their families. We can't support families unless there are jobs. We can't have jobs unless the people have both money to invest and the faith to invest it." "We are taxing ourselves into economic exhaustion and stagnation, crushing our ability and incentive to save, invest and produce. This must stop. We must halt this fiscal self destruction and restore sanity to our economic system." "There may be a sailor at the helm of the ship of state, but the ship has no rudder." "No American should vote until he or she has asked; Is the United States stronger and more respected now than it was three and a half years ago?" Source: Reagan Foundation via YouTube | |
Why the Financial System Could Collapse Posted: 29 Jul 2012 05:33 AM PDT In order to understand why we’re at risk of the financial system collapsing, you first need to understand how the global banking system works. When you or I buy an asset (say a house, or shares in a stock, or a Treasury bond), we do so because we’re looking to increase our wealth through either capital gains or through the income that asset will pay us in exchange for us parking our capital there. | |
Central Bankers Choice Between Deflationary or Hyperinflationary Depression Posted: 29 Jul 2012 05:23 AM PDT What the Federal Reserve System can do and what it will do are two different things. The Federal Reserve System can monetize anything. It can create digital money and buy any asset it chooses to buy. There are no legal restrictions on what it is allowed to monetize. If it were to do this, and it continued to do this, the dollar would fall to zero value. This would produce hyperinflation. The result would be the destruction of all dollar-based creditors. Debtors could pay off their loans with the sale of an egg or a pack of cigarettes. This is what farmers did in 1923 in Germany and Austria. | |
Twitter Weekly Updates for 2012-07-28 Posted: 29 Jul 2012 04:45 AM PDT [LIST] [*]S&P 500 Prospects Not Good Given Economic Situations in Europe & Asia Here's Why [URL]http://t.co/OLKo9N8e[/URL] # [*]80%+ Chance Stocks Will Rally by End of 2012 Here's Why [URL]http://t.co/pFws7WZ8[/URL] # [*]The U.S. Dollar Is Not Going to Zero Anytime Soon! Here's Why [URL]http://t.co/X4X4AcGv[/URL] # [*]What is the Fed REALLY Up To? [URL]http://t.co/6hdZ1hC3[/URL] # [*]Pento: The U.S. is About 2 Years Behind Europe's Pernicious Path [URL]http://t.co/PZ5XJoOu[/URL] # [*]Contrarian Investors Take Note: Extreme Low of Gold Miners Bullish Percent Index Screams BUY! Here's Why [URL]http://t.co/cCG2eh7K[/URL] # [*]S&P 500 Prospects Not Good Given Economic Situations in Europe & Asia Here's Why [URL]http://t.co/OO8St3c7[/URL] # [*]Negative Interest Rates Becoming More Prevalent Here's Why You Should Be Concerned [URL]http://t.co/BgpIJIPk[/URL] # [*]Aden Forecast: Bubble Phase in Gold to Begin in 2013 and Possibly Reach
[URL]http://t.co/UtCzSub... | |
Why a decline of “the Facebook” shares by 47% proves you can never trust a bank Posted: 29 Jul 2012 12:57 AM PDT Before the Farcebook IPO, I wrote on my blog that Facebook was heading for a ridiculous valuation when it was launched on the stockmarket. That wasn't because I think it's a bad company – pretty clearly a company that makes … Continue reading |
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