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- Keiser: Bankers Going Ultra-Violent
- The Return of the Gold Standard
- Freeport McMoRan On Solid Ground
- Destroying the Young with Permanent Bailouts
- Your Retirement: Using Stocks In Place Of Bonds
- Yamada – Gold & Silver at Critical Points in This Cycle
- Metals ETF Weekly Special Report For July 4, 2012
- Currencies Don’t Make Gold Look Good
- The Ultimate History-Of-Markets Chartbook
- No Stimulus Anytime Soon
- Gold Drops After ECB Cuts Rates to Record Low
- Which United States President dug for Australian Gold ?
- EM: Silver Chart Update – 7.5.12
- Bullion Drops after ECB Cuts Rates to New Low
- Davies: Gold $6000
- SocGen Advises "Holding Gold Tight" after Bank Moves
- JIm Willie: Exposure of Banker Corruption
- Silver Update: 7.4.12 – Silver Longs
- Fraud trial for Rodrigo Rato over Bankia collapse
- Vancouver home sales plunge to 10-year low in June
- Gold & Silver Market Morning, July 05 2012
- Look at Home Price in Terms of Gold
- Bob Diamond Performs “Je Ne Regrette Rien”
- The Dow/Gold Ratio on Independence Day
- Links for 2012-07-04 [del.icio.us]
- Investors shun gold as poor monsoon spoils rural demand
| Keiser: Bankers Going Ultra-Violent Posted: 05 Jul 2012 10:32 AM PDT In this episode, Max Keiser and co-host, Stacy Herbert, discuss bankers doing 'the ultra violent' on the global financial system and propose the Keiser Technique to remedy the asymmetric approach to financial justice. In the second half of the show Max talks to Reggie Middleton of BoomBustBlog about whether or not French banks are next to collapse and about the flashing fraud warnings on Libor that were always there in the credit default swaps market. from russiatoday: ~TVR |
| The Return of the Gold Standard Posted: 05 Jul 2012 09:58 AM PDT The US, which has a whopping 75% of its reserve holdings in gold, and the Western European countries, which have an average of approximately 64% of their reserve holdings in gold, seem to believe no one should own gold – except them. |
| Freeport McMoRan On Solid Ground Posted: 05 Jul 2012 09:45 AM PDT Freeport McMoRan Copper and Gold (FCX) continues to execute on its plans to ramp up global copper output to meet anticipated robust worldwide demand, particularly from Asia. In a few short years, the company has grown to become the world's second-largest producer of the red metal, with its output only exceeded by Chile's government-owned Codelco. Recoverable reserves are estimated at 120 billion pounds, using a projected long-term price for copper of USD2 per pound. That's a remarkably conservative estimate, because it's more than a third lower than the metal's current price. Adding in "Mineralized Material" - which won't qualify as reserves until feasibility studies are completed - the company has 235 billion pounds in the ground. With resource nationalism on the rise globally, big reserves in many countries are at constant risk of expropriation. Freeport periodically faces turmoil at its Grasberg mine in Indonesia. Although highly unlikely, a closure of Complete Story » |
| Destroying the Young with Permanent Bailouts Posted: 05 Jul 2012 09:36 AM PDT Bullion Vault |
| Your Retirement: Using Stocks In Place Of Bonds Posted: 05 Jul 2012 09:11 AM PDT  By Aaron Katsman: As global financial markets continue their volatile way, many investors have thrown in the towel regarding investing in stocks and have moved all their money into bonds. As investors stay glued to every news report that may shed light on the potential collapse of the euro, as well as a slew of new data showing a slowing U.S. economy, preservation of capital has taken on added importance. According to ICI data, over $150 billion has flowed into bond funds so far this year. This continues a trend of huge inflows since 2009. History
Traditionally yields on bonds outpaced the dividend yield on common stock. This is a reason that investors would incorporate bonds into their portfolio. They could get a fixed yield and a reasonable level of safety. In fact, according to data from the widely acclaimed Yale economist Robert Shiller, since 1962, top quality bonds in the U.S. have Complete Story » |
| Yamada – Gold & Silver at Critical Points in This Cycle Posted: 05 Jul 2012 09:05 AM PDT
from kingworldnews.com: With gold trading near the $1,600 level and silver around $28, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada's "Technical Perspectives" report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally. Metals: Gold & Silver By Louise Yamada Technical Research Advisors, LLC ("LYA") July 5 (King World News) – Gold spot price (GOLDS-1,597.40) is little changed over the month, unable to hold definitively above 1,600, yet still failing to break below critical support at 1,539 (see Figure 9). A more neutral range may continue for a time as the weekly momentum remains on a Sell, though the angle of decline has moderated. Sideways action could establish a shelf of repair for a renewed attempt to rise at a later date. Parameters remain the same as last month, awaiting either a break to a new low below 1,539, or a move up through 1,641 (price resistance) and then through 1,700 (downtrend line) to suggest an advance may sustain. Keep on reading @ kingworldnews.com |
| Metals ETF Weekly Special Report For July 4, 2012 Posted: 05 Jul 2012 08:53 AM PDT By Patrick MontesDeOca: By Patrick MontesDeOca With the metals sector breaking out last week to the upside from a relentless bearish correction that started in late February early March of 2012, let's take a look at some precious metals ETF's we are focusing currently and see what trading opportunities we can identify for the immediate future for week ending 6/29/2012 closing prices. GDX - Market Vectors Gold Miners
Complete Story » |
| Currencies Don’t Make Gold Look Good Posted: 05 Jul 2012 08:29 AM PDT
from news.goldseek.com: Let's start by stating that the title of this essay refers to the current situation on the gold market – not to the long-term fundamental picture. In fact, up to this day, no paper currency has survived in its original form while gold has been used as money since time immemorial. Every fiat currency since Roman times has ended in devaluation and eventual collapse, of not only the currency, but often of the host economy. The usual course of events is that paper currencies are inflated away until worthless. The purchasing power of the US dollar, for example, has declined by 90% since 1950, also true for most currencies. The Roman Denarius was a coin of pure silver at the beginning of the first century C.E. Hundred years later the denarius' silver content was down to 85%. Roman emperors liked the idea of devaluing their currency in order to pay the bills and by 218 C.E. the Denarius was down to 43% silver. Around the time of the collapse of the Romans Empire, the Denarius contained only 0.02% silver and was no longer universally accepted as a medium of exchange or a store of value. There are numerous other examples of failed experiences in fiat money, the "Flying Money" of China, The Livres and Assignats of France. The German Mark under the Weimar republic deserves special mention, since this period influences Germany's thinking today. Post-World War I Weimar Germany is infamous as an example of the greatest hyperinflation ever. The Treaty of Versailles that ended World War I punished Germany by forcing it to make reparations. The only way Germany could meet its obligations was by running the printing press. Inflation got so bad that Germans were using stacks of Marks to heat their furnaces and used wagonloads to buy bread. In 1919, 12 German marks equaled one U.S. dollar. By 1923 the rate was 4.2 trillion marks for one U.S. dollar. In more recent history we have had currency shocks in Argentina, Finland, Italy, Norway Mexico, Thailand, Russia, Turkey and there are many more examples. Keep on reading @ news.goldseek.com |
| The Ultimate History-Of-Markets Chartbook Posted: 05 Jul 2012 08:27 AM PDT
from zerohedge.com: Whether gold-bug, permabull, or deflationst; BofAML provides a little something for everyone in the most complete picture guide to 'financial markets since 1800′. A collection of almost 100 charts on asset price returns, correlations, volatility, valuations and many other market and macro factors for the US, UK, Europe, Japan, and Emerging Markets. "History does not repeat itself but it does rhyme." The Long-run in numbers: 1.45%: the yield of US 10 year Treasuries on June 1, 2012; a 220-year low Keep on reading @ zerohedge.com |
| Posted: 05 Jul 2012 08:20 AM PDT  By Thomas Kee: The decline in gold prices over the past year has been telling, and unless gold prices turn higher soon those signals will remain clear: No additional stimulus anytime soon. The printing presses have essentially been turned off here in the United States, and there have been no new infusions planned for Europe either. What was already in place (ESM) may still be allocated, but no new additions to the bailout fund overseas have been made (those are already priced in). The aggressive declines in GLD and SLV, the most widely followed gold and silver ETFs on the market, are a telling sign. SPDR Gold Shares (GLD) is down 17% from its high last year, and iShares Silver Trust (SLV) is down 45%. Gold bugs are still adamant that gold prices will increase, but I could never find a viable way to trade gold. Clearly, precious metals can tell us something Complete Story » |
| Gold Drops After ECB Cuts Rates to Record Low Posted: 05 Jul 2012 08:12 AM PDT gold.ie |
| Which United States President dug for Australian Gold ? Posted: 05 Jul 2012 07:41 AM PDT |
| EM: Silver Chart Update – 7.5.12 Posted: 05 Jul 2012 07:31 AM PDT |
| Bullion Drops after ECB Cuts Rates to New Low Posted: 05 Jul 2012 06:59 AM PDT The ECB has cut the main refinancing rate to record low of 0.75%. Gold dropped sharply immediately following the announcement, but is currently rising again. Analysts say that a rate cut implies a lower real interest rate, which ultimately is bullish for gold. |
| Posted: 05 Jul 2012 06:57 AM PDT Hinde Capital's Ben Davies talks about the price of Gold. He says it could hit $6000 an ounce. He speaks on Bloomberg Television's "Street Smart." |
| SocGen Advises "Holding Gold Tight" after Bank Moves Posted: 05 Jul 2012 05:29 AM PDT Wholesale dollar prices to buy gold eased 0.5% from a new two-week high at $1624 per ounce Thursday lunchtime in London, as the euro currency fell hard following a widely expected cut to European Central Bank interest rates. |
| JIm Willie: Exposure of Banker Corruption Posted: 05 Jul 2012 04:43 AM PDT
from news.goldseek.com: Few observers make the connection, but the current LIBOR scandal is a middle inning of two important events. The first is the demise of the Western banker leadership crew. The executives from the most powerful banks will be last to be deposed, all sharing an ethnic strain. The second is the open fracture of the Western financial system. Over the past few years, to be sure a great many people have grown tired of Jackass descriptions of corruption within the banking sector and financial system in general. Well, hear this: TOLD YA SO! The London Interbank Offered Rate scandal will erupt into an uncontrollable firestorm, hitting one chamber and then the next, with rapid contagion. The Bank of England and the US Federal Reserve are both implicated, but they will skate until the end game. They control the prosecutors and the news networks. Few yet connect the LIBOR rigged prices to the important parts of the financial kingdom run by the harried banker elite. The supposedly informed experts point to the rigged low rates for adjustable rate mortgages, for credit cards, and for student loans. Only the ARM rate is important among these, since it kept and housing bubble going. If truth be told, the LIBOR anomalies have persisted since late 2008. The intrepid first class forensic bond analyst Rob Kirby linked the sordid trails and mismatched discrepancies of the LIBOR to the JPMorgan monster, the US Federal Reserve syndicate ring leader, and the USDept Treasury (haven for Goldman Sachs lieutenants). See his 2008 article on Financial Sense (CLICK HERE). Regulators have done nothing for four years. It was not fully appreciated at the time, like it might be today. The LIBOR should match the settled EuroDollar contract, but it has not for years. The evidence for price rig has been glaring for years. The big banks have skimmed the difference for profit for years. Imagine selling milk or concrete with a variation in price at the wholesale level, enabling vast profits from skimming. It has been permitted for the big banks, a grand blemish on an already scarred sector. Anyone with a solid intelligence quotient, a curious manner, and a suspicious streak can detect the recent trail. The MFGlobal client account thefts were a coming out event for the corruption. The JPMorgan margin calls on various positions had become an acute problem. They were very short on cash. With the upcoming December 2011 gold & silver delivery notices adding strain to the near breakpoint, JPMorgan made a decision. They stole the MFGlobal client accounts. They reneged on all precious metals contract delivery. They put all the to-be-delivered metal in their own account. Mission Accomplished, the catch phrase for unspeakable colossal permitted corruption in the USGovt and US financial markets. The losses in May by JPMorgan in the sovereign bond and Interest Rate Swap arena provided the Prima Facie case for the MFGlobal thefts, showing deep losses that will escalate over time. The officials at JPM have been telling scattered truths over the course of the last several weeks. They admit at times that their profound losses are tied to Interest Rate Swaps, which experienced analysts and traders can tell are for defense of the USTreasury Bonds and their entirely unwarranted 0% yield. The annual now chronic $1.5 trillion USGovt deficits must be financed. They should be financed at a Spain-like 7% yield. The two nations have equally wrecked finances and an equal unemployment rate. But doing so would be far too disruptive. But doing so would be far too costly. But doing so would take away the wellspring of cheap money for the speculation. The big banks enjoy a brisk carry trade off the USTreasury curve that makes easy profits. No other industry is granted such risk free profits. So enter the IRSwap to generate an artificial USTBond rally from a phony engineered flight to safety. The thought of a flight to the safety of massive uncontrollable USGovt toxic debt pit is laughable on its face. The LIBOR price rig has enabled virtually free funds for the IRSwap that supports the vast 0% USTBond tower. The next connection will soon be revealed. The IRSwaps are fed by the deep source fountain of LIBOR, at virtually free cost. It bears repeating. Too much attention is given to the adjustable rate mortgage feeder process. Not enough is given to the derivatives that are abused by the financial sector in unregulated shadow systems. The big banks have sold too many multiples of Credit Default Swap insurance, to the point that both counter-parties are dead. No net neutrality is a reflection of reality. Too legless swimmers do not rescue each other in the deep waters. They both drown, just like the bank parties involved. However, the big story is the Interest Rate Swap contracts, those arbitraged long-term bond swaps versus short-term bond swaps that enable free money to finance the levers that control the long maturity for the USTBonds. Anyone who believes the TNX fell from 3.6% in 2011 to under 1.8% was from a flight to quality is either drinking Wall Street kool-aid or duped by their marketing flyers or captivated by media propaganda or just plain stupid. The vested interest in watching the 10-year USTBond yield go into ultra-low territory is all very understandable. Many financial asset prices depend upon a low benchmark bond yield. Keep on reading @ news.goldseek.com |
| Silver Update: 7.4.12 – Silver Longs Posted: 05 Jul 2012 04:26 AM PDT BJF on silver dragons and a forum rant about JPM Ted Butler in Silver Update 7.4.12 Silver Longs. from brotherjohnf: ~TVR |
| Fraud trial for Rodrigo Rato over Bankia collapse Posted: 05 Jul 2012 03:57 AM PDT
from telegraph.co.uk: Rodrigo Rato, the former head of the International Monetary Fund, is to face trial for alleged fraud in connection with the spectacular collapse of Spanish lender Bankia. Keep on reading @ telegraph.co.uk |
| Vancouver home sales plunge to 10-year low in June Posted: 05 Jul 2012 03:45 AM PDT
from business.financialpost.com: Sales in Canada's most expensive housing market continue to plummet with the Greater Vancouver area hitting a 10-year low in June for activity. One economist says it's a trend that might soon be making its way right across the country. "The best view of Toronto right now is really from Vancouver Island," said Benjamin Tal, deputy economist with CIBC World Markets. "Toronto will follow but it won't be as significant as Vancouver." Mr. Tal says other Canadian cities will see a decline although not as severe as Toronto or Vancouver. Calgary and Edmonton are at different point in their housing cycle and not likely to see a drop in sales or price. Overall, there were 18,493 properties for sale in the Vancouver area through the MLS in June, a 22% increase from a year ago and a 3.7% jump from May. Prices appeared to be stabilizing based on what the board calls its composite benchmark price index which is up 1.7% over the last year and 0.7% down from May. Keep on reading @ business.financialpost.com |
| Gold & Silver Market Morning, July 05 2012 Posted: 05 Jul 2012 03:00 AM PDT |
| Look at Home Price in Terms of Gold Posted: 05 Jul 2012 02:06 AM PDT After peaking in 2002, house prices have death spiraled 75% when priced in gold, and now are the cheapest they have been since 1983. If the withdrawals of stimulus programs lead to another leg down in home prices, the fall might be limited to 10%-15%. |
| Bob Diamond Performs “Je Ne Regrette Rien” Posted: 05 Jul 2012 01:58 AM PDT As much as I would have liked to have seen the Bob Diamond testimony before Parliament yesterday (a previously booked flight ruled that out), I should probably consider myself lucky. Comments by readers and tooth-gnashing reports from the British press indicate that Diamond is an apt student of the well honed CEO practice of shirking responsibility and shameless denials. Those strategies go a long way in stymieing efforts to get insight, at least in the setting of a legislative grilling. Some of it is the time constraints on each interviewer: they can only go so long before they have to turn the mike over to a colleague. I'd love to see a real prosecutor, with the luxury of time and the ability to do serious discovery before deposing executives, go after some of these fearless leaders. The most theatrical moment of the day appears to have been when MP John Mann went full bore into Diamond. I'm expecting this bit to make YouTube, but this live blog account from Scotsman gives a decent feel (Guardian's live blog interspersed tweets from other journos, which gave multi-dimensioned coverage, similar to having multiple talking heads at a sporting event):
The internal inconsistency was there for all to see: I Bob Diamond fully deserve my lofty pay. No, there was no problem here, Barclays has a great culture. That Libor problem? Oh, it was only 14 traders and their "immediate supervisor" (don't you love that expression? It conjures up an image of a store or factory floor boss, the sort of guy in short sleeves who wanders around to keep everyone on their toes, as opposed to the sort it probably was, a managing director pulling down at a few million quid). Oh yeah, and the compliance guys missed it too. We have the prima facie evidence of the actual rottenness in Barclay's culture in the very person of Bob Diamond. Fish rot from the head. Diamond has clearly, deeply internalized the "heads I win, tails you lose" finance view of the world. Barclays not only took advantage of special facilities during the crisis and continued super low rates now, it also enjoys a "too big to fail" funding advantage. Yet Diamond has been one of the most flagrant in showing contempt for the broader public to whom he owes his lofty pay. As we wrote in "Barclays' Bob Diamond to Non-Bankers: Drop Dead" in January last year:
Fast forward to Diamond's Parliament star turn. So his past statements have made clear that he is pretty deficient in any sense of responsibility and he confirmed it again today, with his sadly not unusual view that CEO, like finance people generally, get the benefits of all good things, like bull markets, rising leverage levels, and dumb luck, but never never have to be responsible for failures in oversight, save saying they are sorry (remember, not only has dog-in-the-manger Diamond made it abundantly clear he is not giving up his pay, he's apparently seen as likely to land a new job pronto. Nothing like failing up, or at worst sideways). And the MPs managed to dent Diamond's efforts to defend Barclay's culture. An exchange with Teresa Pearce, per the Guardian:
Andrew Tyrie pointed out that the FSA had raised red flags about Barclay's culture four months ago, which left Diamond on the back foot, claiming that the FSA approved of the "tone at the top." John Gapper of the Financial Times focuses on an issue that this blog and others have raised, that what is really at issue here is that the predatory values of traders now pervade the industry, leading incumbents to defend them as normal and necessary. This leads inevitably to "the devil (the competition) made me do it" defense: Diamond claimed he'd found out about "the full extent" of the Libor bid rigging only a month ago, and he also said the bank spent £100 million investigating it. Huh? The FT had been writing about this issue since 2007. This says that Barclays refused to do a decent job of internal reviews and that (presumably) Diamond found out how bad things were only via his costly external assessment. a month ago. It points to either a considerable shortfall of internal controls or a deliberate management policy of "we know about this but we'll pretend we don't," meaning key parties were careful not to commit incriminating information to e-mail or other written form. Neither reflects well on Diamond. Diamond's disconnectedness, whether genuine or clever posturing, sounds like the view from Versailles, circa 1780. As Andrew Sparrow of the Guardian observed,
There was a brief period, from October 2008 to (roughly) February 2009 when top bankers were frightened and humble. Unfortunately, it will likely take a crisis of the scale just past to engender some humility. And if the public and regulators do not get the will, soon, to curtail their looting, they are likely to engender a meltdown sooner rather than later.
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| The Dow/Gold Ratio on Independence Day Posted: 05 Jul 2012 01:10 AM PDT Plenty of people pay close attention to the Dow/Gold Ratio. Eighty years after it sank to its Great Depression low, you might want to take a look this week, too. |
| Links for 2012-07-04 [del.icio.us] Posted: 05 Jul 2012 12:00 AM PDT
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| Investors shun gold as poor monsoon spoils rural demand Posted: 04 Jul 2012 11:36 PM PDT |
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