Gold World News Flash |
- How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us
- Bill Gross’s Remarkable Comments About Gold
- The Human Cost: “Your Life And The Lives of Those You Love Are Just Pawns On Their Chessboard”
- On Fiat Money, Banking & Men
- JPM's Woes Grow With New Money Laundering Probe: Remember Bill Murphy Told Us “JP Morgan is FINISHED!”
- The Next Recession Will Be Triggered by Oil
- Peter Schiff 2012 – Get out now! Get out of the dollar!
- Bad Omen: Egan-Jones Slashes U.S. Credit Rating in Response to Fed’s QE
- Silver Update 9/16/12 Escape From America
- Fiscal Cliffs and Monetary Mountains
- Gold Will Soar As The World Sinks Further Into The Abyss
- Jim's Mailbox
- Hedge Fund Silver Positions
- Latest article posted at GoldMoney
- The Fed’s Drugs Won’t Work Anymore
- Gold Stocks Just Began a Huge Run Higher
- Gold Will Soar As The World Sinks Further Into The Abyss
- There She Blows!!!...................Evil Plan 83.0 (by BDI from Slope of Hope)
- Bernanke?s Last Gasp
- Purchasing Power Of Various Currencies and Gold
- King World News interviews Hathaway, von Greyerz, Haynes, and Norcini
- The Next Recession Will Be Triggered By Crude Oil
- A new gold standard?
- Top 14 Reasons To Buy Silver
- GOLD: Bernankesans Triple Whammy!!!
- Silver Liberation Army Readies Major Assault with New ‘Ethical Silver Keisers'
- The Fraud of Negative Gold/Silver Lease Rates
| Posted: 17 Sep 2012 12:00 AM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Bill Gross’s Remarkable Comments About Gold Posted: 17 Sep 2012 12:00 AM PDT Iacono Research
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| The Human Cost: “Your Life And The Lives of Those You Love Are Just Pawns On Their Chessboard” Posted: 16 Sep 2012 11:30 PM PDT by Mac Slavo, SHTFPlan:
There is no single event that has brought the world to the crisis which we now face. It's been a coordinated, long-term plan whose seeds were sown decades ago. It will soon come to a head on an economic and geo-political scale, and the consequences will be severe for most of the seven billion people on this planet.
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| On Fiat Money, Banking & Men Posted: 16 Sep 2012 10:30 PM PDT by Ann Barnhardt, SilverBearCafe.com:
If you know how bad the situation is and don't feel the need to subject yourself to any more of my patented Barnhardt Phillipic and Funeral Dirge for Civilization, take your leave now, because I honestly think that this is the the saddest, most profoundly depressing post I have yet written. And I've written a few. A few thousand. The topic is the US Dollar, and currency in general. The Federal Reserve has been willfully and systematically debasing the US dollar for a century by claiming that 2% inflation is the benchmark of a healthy economy. Since the universities and media have been overrun by Marxists, there is hardly anyone alive who A.) is in possession of the capacity to independently think and reason their way through such a question and B.) anyone who cares in the first place. Read More @ SilverBearCafe.com
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| Posted: 16 Sep 2012 10:22 PM PDT
When I interviewed GATA's Bill Murphy on July 19th, Bill predicted with amazing accuracy the "big, big moves" we saw in both gold and silver in August. Bill also told us that his London source claimed that at least part of JP Morgan's 'London Whale' loss of $2+ Billion (later revised to $5-7 billion), had something to do with Morgan's massive short position in silver. The London source told Murphy that Morgan was having a hard time extricating itself from its massive short position. Then on August 22nd, Bill Murphy was interviewed by altinvestorshangout and made even more shocking predictions regarding JP Morgan. Bill again reiterated that JP Morgan was in "big trouble". Murphy said the gold cartel and JP Morgan "are losing control of the manipulations at these low prices. They don't have the metal to keep the prices down here. It's that simple." Then Bill dropped a bombshell:
Two weeks later Bill appeared on Capital Account and predicted more nightmares for JPM, saying that he wouldn't be surprised to see a JP Morgan force majeure – and a failure to deliver before the end of the year. "They have big problems with what they've done… and they're running out of physical supply", Murphy told host Lauren Lyster. Now flash forward to the present. As we posted today, news is breaking that JP Morgan is now faced with a 'money laundering' scandal. Reuters is reporting that JP Morgan is "the latest target of a wide investigation of how banks prevent transactions involving drug money and sanctioned countries." A subsequent article from Reuters titled Probe focuses on JPMorgan's monitoring of suspect transactions states:
As we already know, international banking is a criminal operation. Several weeks ago British bank HSBC Holdings and Standard Chartered U.K., were both tied to laundering money for drug cartels in Mexico and sanctioned countries such as Iran. It should come as no surprise to anyone that JP Morgan may be involved in the same type of criminal activity. Will this money laundering investigation be the beginning of JPM revelations that will "rival the LIBOR scandal", as Murphy predicted? We'll see. But one thing appears certain, we are getting closer and closer to the complete and total meltdown of the international criminal "banking" operation known as JP Morgan.
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| The Next Recession Will Be Triggered by Oil Posted: 16 Sep 2012 10:13 PM PDT Gold Scents
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| Peter Schiff 2012 – Get out now! Get out of the dollar! Posted: 16 Sep 2012 10:00 PM PDT |
| Bad Omen: Egan-Jones Slashes U.S. Credit Rating in Response to Fed’s QE Posted: 16 Sep 2012 09:00 PM PDT by Kurt Nimmo, Infowars:
On Friday, the independent and nationally recognized statistical rating organization lowered "the U.S. government to 'AA-' from 'AA,' citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality," CNBC reported. In April, Egan-Jones ratcheted down the U.S. credit rating to "AA" from "AA+" with a negative watch. The negative watch meant there was a 50% chance of the government's rating being lowered within three months. Egan-Jones said cranking up the printing presses and artificially lowering interest rates by purchasing mortgage-backed securities will not raise the real GDP but will instead reduce the value of the dollar.
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| Silver Update 9/16/12 Escape From America Posted: 16 Sep 2012 08:54 PM PDT |
| Fiscal Cliffs and Monetary Mountains Posted: 16 Sep 2012 08:34 PM PDT On September 13, economist Frank Shostak had an article on Mises.org about the upcoming "fiscal cliff," which he explains this way: The "fiscal cliff" refers to the impact of around $500 billion in expiring tax cuts and automatic government-spending reductions set for 2013 as a result of successive failures by Congress to agree on some orderly alternative method of reducing budget deficits.The impact, according to the CBO, is that the federal deficit could fall by nearly half (43%), from $1.128 trillion in 2012 to $641 billion in 2013. How should we interpret this projection? The IMF and CBO think it's a looming disaster. But the IMF and CBO are not staffed by Austrian economists. Shostak: Ultimately what matters for the economy is not the size of the budget deficit but the size of government outlays — the amount of resources that government diverts to its own activities. Note that, because the government is not a wealth-generating entity, the more it spends, the more resources it has to take from wealth generators. This means that the effective level of tax here is the size of the government and nothing else.The projected decline in government spending for 2013 is $9 billion, which follows a projected decline of $40 billion for 2012. You would think commentators would zero in on 2012's decline rather than 2013, Shostak notes. But wait - if it's true government takes things out of the pot without putting anything in, why would so many people be afraid of a reduction in government outlays? If the "pot" represents a snapshot of a society's total wealth, with net revenue streams feeding it, wouldn't it make sense to slap government's hands for scooping up whatever it wants? Yes, it would if the dominant economic theories were free market instead of Keynesianism. In the Keynesian world, government doesn't have to do anything useful to create jobs and prosperity, since, as Paul Krugman says, we're in a liquidity trap. By paying people to dig holes and fill them back up it puts real food on the table because those hole-workers will spend their money and induce farms and factories to grow more corn and produce more razor blades. It's not just the dirt diggers powering the recovery, either - it's everyone they trade with, thanks to the Keynesian spending multiplier. As economist George Reisman notes, "The multiplier and its benefits are allegedly restrained only by the disappearance of funds into the 'leakage' constituted by saving." Shostak then addresses the issue of expiring tax cuts - will we have less purchasing power in 2013? You might think the answer is straight-forward: More for government means less for us. But given the expected reduction in government outlays, Shostak argues, the tax increase will be "like a tight monetary policy." A tighter monetary stance in this respect should be seen as positive for wealth generators since it weakens various bubble activities that sprang up on the back of past loose monetary policies.By this logic if you end up paying more in taxes next year you have reason to feel good, sort of. You may not be able to save as much or go out to dinner as often, but on net you're better off because the sub-group of market participants who qualify as wealth-generators will have a lighter economic burden because of the decline of certain bubble activities. One supposes that if the tax increase were greater yet, more bubble activities would cease, and the result would be even more positive for wealth generators. But if taxes continue to rise, at some point the monetary stance would become so tight it would strangle the process of wealth-generation. The tax increase, therefore, is harmful to all economic actors, with the possible except of the government. Put another way: If the taxed individuals are wealth generators they will have less money with which to invest in capital goods. Other things equal, they will produce less, not more. Taxes may put the bubbles on the sidelines, but they also hurt the wealth generators. It's hard to see how a tax is a net positive, at least for the taxpayer. Here Comes Hyperinflation? Another issue to surface this past week was inflation, the scary kind, as in destruction of the currency. On September 12 Greg Hunter published an interview with Shadowstats founder John Williams, who predicted a dollar sell-off leading to digital wallpaper by 2014. When Ben Bernanke announced a day later that the Fed would run the printing presses until the unemployment rate improved, it seemed like fulfillment of a prophecy. But will Bernanke print until the currency is no longer money? Does that statement square with Williams' acknowledgement that the Fed's primary concern was "propping up the banks"? How does turning the U.S. dollar into wallpaper help Citibank or Bank of America? How does it help businesses produce, hire, and innovate when money becomes so plentiful it is more profitable to use as toilet paper? More likely Bernanke will print and print, and print some more, then stop. He will stop short of killing the dollar. The bankers want to be able to buy things with their billions. He will stop, and by then smart investors will be perched atop foreign currencies and precious metals as they watch the politicians flog the lifeless horse that was once our economy. Bernanke may be acting suicidal but I don't believe he's thinking that way. He's merely thinking like the Keynesian he is. More spending is the great panacea. People will not sit on cash if they think it's getting worthless. Paul Krugman says Bernanke is behaving in a manner consistent with his advice to "credibly promise to be irresponsible." By this he means Bernanke cannot get people spending unless they expect higher prices. Monetary policy, therefore, should seek to instill this expectation. Promising to print an additional $40 billion a month indefinitely might get them shopping in a panic. But if they shop for precious metals, their strategy will have backfired. Conclusion Keynesians have been running things since the 1930s. They are blind to oncoming train wrecks and spin their chronic failures with "too little, too late." The business cycle is a mystery they blame on the market rather than past interventions. For them, the heart of the economy is a government-supported banking cartel that proudly distorts prices and a profligate Congress that blows the roof off its debt limits. They are the enablers of a government that is growing more intrusive in every area of our lives. Keynesians are bringing civilization to its knees, while being called on to save it. I occasionally find it helpful to recall the words of my instructor, Dr. Robert P. Murphy, as he concluded a Mises Academy course on Keynes, Krugman, and the Crisis last year: Ask yourself: What would the world look like if Keynesians were totally wrong? 
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| Gold Will Soar As The World Sinks Further Into The Abyss Posted: 16 Sep 2012 08:00 PM PDT from KingWorldNews:
Today Michael Pento upgraded his bullish stance on gold by telling King World News, "I now predict that Chairman Bernanke's actions will send gold to an all-time high." Pento has been deadly accurate in his predictions regarding moves by the central planners. He now believes gold will hit new all-time highs, "… both in nominal and real terms." Michael Pento writes exclusively for King World News to let readers know what to expect from central planners going forward, and how it will impact the economy and key markets such as gold. Here is Pento's piece: "Last week, Fed Chairman Ben Bernanke announced that the central bank would launch an unprecedented form of quantitative easing. This 'new and improved' iteration of money printing will be without limit and duration. The Fed Head launched QE III ($40 billion of MBS purchases every month) on September 13th and stated that it will remain in effect until the labor market 'improves substantially.'" Pento continues @ KingWorldNews.com
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| Posted: 16 Sep 2012 07:25 PM PDT Dear Jim, Here is a 'snapshot' of the US Dollar's most recent decade. It is from the Fed. No one can claim they are 'unaware' of this information. Note the sharp reaction upon QEIII being announced. Bad idea to hold Dollars. No matter how 'high' the stock markets seem to climb, it is a Continue reading Jim's Mailbox
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| Posted: 16 Sep 2012 06:31 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Here is the latest breakdown of the hedge fund positions in the Silver market at the Comex based on Friday's COT data. Speculative money flows continue into Silver as hedge fund managers position themselves further on the long side of the market and continue reducing their short side exposure. ...
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| Latest article posted at GoldMoney Posted: 16 Sep 2012 04:02 PM PDT This article is posted at GoldMoney, here. A new gold standard?2012-SEP-16
 Gold as money is fundamentally different from the paper-money environment we operate in today. Gold cannot be manipulated by government, while fiat money gives governments the flexibility in monetary policy they are accustomed to. To ditch flexibility for inflexibility is hard to justify, whatever the economic case. To do away with the option of easy money will also make many businesses judged to be not over-geared in a flexible monetary environment potentially insolvent. For this reason, it is likely that any proposal for a gold standard is unlikely to go the whole hog. There is also the question of how much gold the central banks actually own, given decades of denying its monetary role, and of intervention by releasing bullion to discourage any thoughts that it is money. The road to hell is paved with good intentions. The reality is that any attempt to go back to a gold standard is an uncomfortable rewinding of the clock. This is not to decry the benefits of sound money: if we had stuck to sound money in the first place we would not be facing the economic crisis we have today. The only way gold will return as money is when fiat money destroys itself, which at the current rate is a matter of perhaps no more than a year or two. But let us generously assume for a moment that a gold standard is seriously considered. In that case, people will argue that there is not enough gold. They are wrong: it is a matter of price because gold is infinitely divisible. They will argue not being able to expand the quantity of gold faster than current rates of extraction is deflationary. It is true that in the long run prices expressed in gold will fall; but it is an error to assume that falling prices are a deterrent to consumption, as anyone in the consumer electronics industry will tell you. The origin of this mistake comes I believe from a reductio ad absurdum of the economic effects of a sharp reduction in the money quantity. More important is the unknown differences between official gold reserves and the true position, and considerably more important is the power a gold standard would give China, who under-declares her gold reserves and would be a major beneficiary of higher gold prices. The reason it is a waste of time looking at a new gold standard has less to do with the erroneously supposed disadvantages of gold as money, and more to do with what our political masters see as the unacceptability of the disciplines it imposes. It is more than likely that this proposal will be quietly forgotten. Alasdair Macleod Head of research, GoldMoney Mob: 07790 419403 alasdair.macleod@goldmoney.com Twitter @MacleodFinance 
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| The Fed’s Drugs Won’t Work Anymore Posted: 16 Sep 2012 03:31 PM PDT QE3. No QE3. The markets have been injected with this hopium for months and have been let down on every occasion except for this last one. The Fed's issuance of this last round of quantitative easing has rendered future doses of this drug ineffective. It was explicitly stated that the Fed would issue QE as needed in unlimited amounts until the market is able to create enough jobs to stimulate dramatic growth. This means that there will not likely be any future spikes in the market as a result of another QE announcement…the market no longer questions whether or not more drugs will come, now they expect them. The Fed had been using "QE hype" to rally the markets. Every time we were on the verge of a collapse another QE announcement would be made bringing us a few feet back from the fiscal cliff. But that tactic wont work anymore… The Fed's actions are fiscally irresponsible and the U.S. will quickly suffer the consequences of this poor decision. If the economic change needed to return to growth is structural then a monetary fix, or QE, isn't the remedy. The U.S. Dollar is on the decline against other major currencies, and investors are losing confidence in the Fed's ability to manage the ensuing risk of another recession. Question that remains, what happens when the QE drug gets taken away? It's time to hedge; if the value of the U.S. dollar collapses how will you respond? Diversification is key. Learn to manage your risk by looking a head; join the Forward Thinking waiting list now. Your currency analyst, Justin Burkhardt
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| Gold Stocks Just Began a Huge Run Higher Posted: 16 Sep 2012 01:48 PM PDT Jeff Clark writes: A big move in gold is coming... After gold peaked just above $1,900 per ounce in August 2011, it took a well-deserved break. But now, after spending an entire year on hiatus, the bull is back.
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| Gold Will Soar As The World Sinks Further Into The Abyss Posted: 16 Sep 2012 12:59 PM PDT  Today Michael Pento upgraded his bullish stance on gold by telling King World News, "I now predict that Chairman Bernanke's actions will send gold to an all-time high." Pento has been deadly accurate in his predictions regarding moves by the central planners. He now believes gold will hit new all-time highs, "... both in nominal and real terms."Michael Pento writes exclusively for King World News to let readers know what to expect from central planners going forward, and how it will impact the economy and key markets such as gold. Here is Pento's piece: "Last week, Fed Chairman Ben Bernanke announced that the central bank would launch an unprecedented form of quantitative easing. This 'new and improved' iteration of money printing will be without limit and duration. The Fed Head launched QE III ($40 billion of MBS purchases every month) on September 13th and stated that it will remain in effect until the labor market 'improves substantially.'"
This posting includes an audio/video/photo media file: Download Now |
| There She Blows!!!...................Evil Plan 83.0 (by BDI from Slope of Hope) Posted: 16 Sep 2012 12:59 PM PDT Well, my fellow Slope-a Dopes, your favorite intrepid seafaring Frenchman got blown out of the water by Benjamin Moby-Dick Bernanke once again. I have to hand it to captain grey beard, for a guy with a curiously quivering lower lip, who seems so utterly unsure of himself every time he opens his moronic mouth, he sure does have some pair of ballistic brass balls. Not only did he delivered on his QE3 promise, but he actually turbo charged it into a terrifying trifecta! Boatswain BDI was left for dead, desperately drowning in a sea of red DOOMs (Deep Options Out of the Money). So now that Moby Dick has breached and surged the equity waves to new highs, where do we sail from here? It now seems clear as day light, that our crazed calculating captain has definitively decided to go all in full monty, embarking on Dalio's deft deleveraging design "hook, line and sinker". What exactly is this beautiful course our asinine Admiral has set sail for? For specific directions, be sure to read bearded Ben's most trusted tactician Ray Dalio's definition of beautiful deleveraging:
I get this cool clever concept, and can see why it appeals to astute academic anuses, as on paper it does have a certain calculable credibility. Mr. Dalio goes on to further explain exactly what this newly chartered course we have been on since 2008 looks like thus far:
I must admit so far so good, all seems to be going swimmingly smoothly, as per the plan's perfectly precise presentation. However, this is the real world we are talking about here, not some PHD graduation thesis on dispay at the Princeton economic petty officers club. Call me an idiot, but somehow I highly doubt that the advanced global economy, with all its complex inter-connected machinations, can be so easily & readily tamed by a few seasick sailors in the captain's quarters, no matter how much Rum they have run through. As the saying goes; many a slip between the cup and the lip. Are we really going to thread the needle here with this bold balancing act, or are the spinning plates going to come crashing down on us all? Should we entrust the entire fate of the world's economic ecosystem to few fancy fellows' fabulous footwork? Myself, I would have much preferred to have let the free markets dictate the pace. Central planning of this monumental magnitude is absolutely antithetical to USA free market capitalism. Beware the immeadiate unintended consequences dopes of hope! Let us now explore a few things that could rock this beautiful banana boat: 2) Will this unprecedented action blow up the Petro-Dollar? As of this September 6th, China and Russia have decided to trade oil in non-petro dollars. Also, Iran can sell their oil to them without worrying about US sanctions. This is a huge development which has not fully sunk in to the general public yet. Perhaps the rest of the world will soon refuse to play ball with a the juiced up Fed as a cheating opponent. Will Asia increasingly turn away from the US capital markets, spending its hard earned reserves elsewhere? I sure as hell would. 4) Much of the recent social upheaval / military conflicts in MENA, have at their roots the caustic effect of high food & oil prices in the region. The US open ended QE policy is exporting inflation, and therefore misery to many impoverished parts of the world. Will the continued instability in the area rapidly lead to even larger major military conflicts which we can already ill afford, not to mention the ominous oil price spike that would ensue?
7) Every municipality, town, city and state that consistently adds to their conservative Government bond holdings, will now earn less income from those fiscally prudent investment portfolios. The Fed's forever ZIRP policy is now effectively forcing comptrollers of already dangerously over leveraged fiscal budget balance sheet all over the country to take on even more risk, by shepherding them towards a questionable search for higher yields. Sounds dicey to me at best. 9) Effect on the Federal deficit. The continued unabashed monetization of debt actually encourages the fiscal cliff to become the greatest divide. Why would the easy money law makers be induced to significantly cut Governement spending if they are not penalized for further borrowing. Giving too much candy to a baby is usually not a good thing. Money for nothing and your chicks for free, is that the new American way? 12) QE3 Inflation acceleration. Unlike the mega yet sterilized bond buying announced by ECB, the FED's reckless QE3 to infinity program does not mention anything about sterilization. This implies that there is no promise to contain the newly minted money via sterilization operations whatsoever, as was the case with QE1, QE2, and all other previous mortgage security purchases, instead it appears that the fubar fabricated funds will free flow directly into the economy, on a potential unlimited basis. $85 billion created per month out of thin air, $40 billion of which are perpetual unsterilized high octane fuel injections into an energetic economic engine is simply mortifying monster truck madness. This drastically increases the immediate dangers of an inflationary inferno flame out.
Higher rates are just what the Bernanke was trying to avoid! Get ready for a midair mid flight stall into a deadly death spiral captain Ben, you have clipped your own wings. We are heading straight into an inflationary depression storm of epic intensity. Inflation in the things we require, and deflation on the things we already own. The greed trap has been hatched from the heavens above, same as it ever was. Up until now, the stock market has enjoyed the free QE bus ride no questions asked, however when the prosperous peeps are surprisingly startled by the tremendous thundering QE3 tailpipe backfire blast, they will quickly realize that the vehicle is running on nothing but fumes, and will all jump off at once before it runs out of regular real gas. Be sure to be the first ones out before the passengers crash the plexiglass doors. Holy hubris ! Inflation Nation ! The Bernanke has blown the lid off his chrome dome! Fear no beard....................P3 is here. Lift off.........Rocket launch failure.........Houston we have a problem.........Evil Plan 83.0
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| Posted: 16 Sep 2012 12:30 PM PDT From Monty Pelerin: Peter Schiff expounds on last week’s Fed action of unlimited money printing. He puts Ben Bernanke’s desperation into perspective. His policy actions are not original and they are absurd based on what we have just gone through. *The economy will not improve, inflation will accelerate and the dollar will collapse. The best that Bernanke can hope for is another housing bubble (it will not happen). If he succeeded, he would be re-creating the problem that cause the current economic crisis. You must decide whether Bernanke is a moron or he is scared to death, knowing what is inevitable. Neither choice is comforting....
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| Purchasing Power Of Various Currencies and Gold Posted: 16 Sep 2012 10:37 AM PDT |
| King World News interviews Hathaway, von Greyerz, Haynes, and Norcini Posted: 16 Sep 2012 09:17 AM PDT 11:15a ET Sunday, September 15, 2012 Dear Friend of GATA and Gold: King World News is the place to be today as the monetary metals world rests up for what may be another turbulent week ahead. Tocqueville Gold Fund manager John Hathaway tells KWN that investors who have missed the recent move in gold and silver are likely now to buy mining shares, since the shares have been terribly undervalued and investors now may have confidence that the prices of the miners' products aren't going lower. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/15_Jo... Gold fund manager Egon von Greyerz tells KWN that he is extremely bullish on silver: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/14_Gr... And Bill Haynes of CMI Gold and Silver and futures market analyst Dan Norcini discuss last week's metals rally in the King World News weekly review: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/9/15_K... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Special Offer for GATA Supporters from The Calandra Report Financial journalist Thom Calandra, co-founder of MarketWatch.com and a longtime GATA supporter, has revived his weekly market letter, The Calandra Report, which is aimed at believers in natural resources and metals equities. His three recommended stocks so far -- prospectors in Nevada, Portugal, and Colombia looking for gold, silver, copper, and tungsten -- have risen since his recommendation, and he is traveling throughout the world to research more recommendations. Through Sept. 22 the TCR's subscription price is $48 per year and during that time Calandra will donate to GATA $5 for every GATA supporter who subscribes. After that the TCR's subscription price will rise to $54. Calandra will join GATA's Bill Murphy and Chris Powell at the Toronto Resource Investment Conference on Thursday and Friday, Sept. 27 and 28 -- http://cambridgehouse.com/event/toronto-resource-investment-conference-2... -- and at the New Orleans Investment Conference from Wednesday through Saturday, Oct. 24-27: https://jeffersoncompanies.com/new-orleans-investment-conference/home For a sample of a recent edition of The Calandra Report and to subscribe, please visit: http://www.babybulls.com/index.cfm/page/THE-CALANDRA-REPORT:-AUGUST-26,-... Join GATA here: Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/.
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| The Next Recession Will Be Triggered By Crude Oil Posted: 16 Sep 2012 08:57 AM PDT I was confident that the Fed had already begun printing. That seemed quite evident by the overall action in the commodity markets, the dollar, and the fact that stocks were unable to correct in the normal timing band for a daily cycle low. However, I didn’t really expect Ben would come out and publicly admit it. That one took me by surprise Thursday. I guess Bernanke wants to get full value for his attack on the dollar and make sure that markets are rising into the election.
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| Posted: 16 Sep 2012 08:00 AM PDT The US Republican Party recently announced its intention to set up a 'gold commission', to examine the feasability or not of returning to a gold standard. This raises important questions, ...
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| Posted: 16 Sep 2012 07:16 AM PDT There is only 1/2 billion oz of silver available... [[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]] 
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| GOLD: Bernankesans Triple Whammy!!! Posted: 16 Sep 2012 02:16 AM PDT We Are Now Beginning The Last Wave Of Gold's Major Uptrend Youri Carma: And we are riding it $2,000 Gold Will Happen Very Quickly A Much Younger But Already Very Promising Bernankesan
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| Silver Liberation Army Readies Major Assault with New ‘Ethical Silver Keisers' Posted: 15 Sep 2012 09:13 PM PDT I just got some of these first-run 'Ethical Silver Keisers' this morning. The rounds are being minted at The Birmingham Mint here in the UK. These rounds will be produced using recycled silver and silver sourced from ESG compliant supplies … Continue reading
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| The Fraud of Negative Gold/Silver Lease Rates Posted: 15 Sep 2012 11:35 AM PDT Experienced precious metals investors are familiar with the topic of "negative lease rates" for gold and silver bullion. However, even novice investors can infer what is being discussed: paying someone to "borrow" gold/silver bullion. In general, any time we contemplate a situation where lenders are paying borrowers to borrow, the word "dump" immediately comes to mind. This is because we begin the scenario with a lender choosing to enter into a transaction with the deliberate outcome of losing money. Because the world of commerce is entirely devoted to earning profits rather than creating losses, this automatically also implies market-manipulation – and thus fraud. It is with this general context that we can now look at the particular subject of the gold and silver markets, where lease-rates are now usually negative (and are negative again currently). With negative lease rates creating a prima facie presumption of manipulation and fraud, the issue then becomes whether the particular fundamentals of the gold and silver markets either support or refute that presumption of fraud. The easiest way to approach this issue is by asking ourselves a question: are there conditions where it might make some crude "business sense" to enter into a transaction with the deliberate intent of losing money? This is ultimately a fairly simple question to answer since when we examine any market, we quickly discover that it is very difficult to construct even hypothetical circumstances where it would make sense to lease that asset at negative prices (other than illegal/nefarious purposes). The immediate proposition we must confront is that the moment we separate ownership of an asset from possession of that asset that we impair our ability to sell the asset; we are intentionally "encumbering" that asset by lending it to a 3rd party. This is problematic with respect to any-and-all price behavior in a market. If prices are rising, we don't want to encumber our asset; since it impairs our ability to take profits (through a sale) – and incurs further losses at the same time through losing money on the lease transaction. The situation is even more adverse with respect to a falling market, since prudent asset-holders would want to retain maximum liquidity with that asset should the need to sell the asset (to cut losses) arise. Even in a flat market it makes no sense to engage in losing transactions via negative lease rates. By definition, a flat market implies "dead money": an asset generating no profits (nor even deductible losses). Should a party be forced to hold a "dead" asset like this (for instance the gold reserves of central banks), while it would make sense to lend-out their gold for very minimal profits (i.e. slightly "positive" lease rates); it would never make sense for these asset-holders to lend-out their bullion at a loss. With there never being price conditions under which it makes sense to lease bullion at negative rates, this leaves us only one more variable to consider: inventories. If the (changing) value of an asset is never a valid basis for choosing to lose money by lending gold/silver at negative rates, then maybe the quantity of an asset being held would be a valid determinant?
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The mainstream media is hailing QE3 as a great victory for the U.S. economy. On nearly every news broadcast, the "talking heads" are declaring that Ben Bernanke's decision to pump 40 billion dollars a month into our financial system is definitely going to help solve our economic problems. The money for QE3 is being created out of thin air and this round of quantitative easing is going to be "open-ended" which means that the Federal Reserve is going to keep doing it for as long as they feel like it. But is this really good for the average American on the street? No way. Despite two previous rounds of quantitative easing, median household income has still fallen for 
by SGT, 
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