Gold World News Flash |
- 10 Quotes From Financial Experts About The Effect That QE3 Will Have On Gold And Silver
- These Pundits See Economic Collapse
- How To Store Gold At Home
- LEAP/2020: Global Economy Will be Sucked into Black Hole in October
- Is America The Most Materialistic Society In The History Of The World?
- Talking Precious Metals IN THE GROUND with Amir Adnani – Physical VS. Mining Stocks
- Gold Trades to New High in Tight Range
- Gold Seeker Closing Report: Gold and Silver End Near Unchanged
- QE3: gold to move onwards and upwards but inflation likely too
- Why Gold Is Heading Higher & Governments Can’t Stop It
- Very Bullish Long-Term Outlook for Silver Stocks
- Retail Investors "Just Say No" To Bernanke's Artificial Wealth Effect
- The Experimental Economy
- MARKETS ARE WAITING FOR THE OIL CYCLE TO BOTTOM
- John Mauldin's Prescription for Avoiding Economic Catastrophe
- The New Crisis Bank Bailouts Begat
- The Gold Price Closed at $1,769.00 any Correction will be Sharp but Won't Last Long Look for Buying Opportunities
- Why Bernanke refuses to let oil prices fall
- The Truth Behind the Romney “Gaffe”
- Embry notes explosion in gold shorting; Eveillard sees long rise ahead
- What Mitt Romney Also Said: A Glimpse Of The Endgame?
- Why The Cluff Deal With Samsung Is A Game Changer In The Gold Industry
- Why The Cluff Deal Is A Game Changer In The Gold Industry:
- Support for GATA in Jay Taylor's Internet radio interview with Peter Grandich
- Bank of Japan’s latest yen-bashing move lasts just 8 hours
- Gold Daily and Silver Weekly Charts - Romulus and Remus
- Embry - We’re Witnessing A Historic & Frightening End Game
- Oil Plunges as Supplies Rise and Saudis Pump More
- Jim's Mailbox
- Things
| 10 Quotes From Financial Experts About The Effect That QE3 Will Have On Gold And Silver Posted: 20 Sep 2012 12:30 AM PDT from End of the American Dream:
Read More @ EndoftheAmericanDream.com
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| These Pundits See Economic Collapse Posted: 20 Sep 2012 12:24 AM PDT From Monty Pelerin: When government runs most things, the rewards of running government trump ethics and morality. The bigger the government, the less moral the society....
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| Posted: 20 Sep 2012 12:00 AM PDT Goldsilver
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| LEAP/2020: Global Economy Will be Sucked into Black Hole in October Posted: 19 Sep 2012 11:48 PM PDT from Silver Doctors:
By the end of October 2012, the global economy will be sucked into a black hole against a backdrop of world geopolitics heated white-hot. Suffice it to say that the coming weeks will, according to our team, carry the planet away in a hurricane of unprecedented crises and conflicts. So, in this GEAB issue, LEAP/E2020 sets out the list of the seven key factors of this double shock without modern historical equivalent: The very painful end of the US anaesthetic is at the crossroads of the seven key factors of a double shock of the coming weeks Because it is indeed that. As we have underlined on many occasions in the GEAB, the United States has, since the beginning of this crisis, refused to face reality (5) by having increasing recourse to financial, monetary,… (and military) subterfuge to try and mitigate the consequences of the crisis. All this however is proving to be ineffective at the end of summer 2012, in spite of the trillions of Dollars thrown down what is proving to be a bottomless hole.
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| Is America The Most Materialistic Society In The History Of The World? Posted: 19 Sep 2012 11:30 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Talking Precious Metals IN THE GROUND with Amir Adnani – Physical VS. Mining Stocks Posted: 19 Sep 2012 11:24 PM PDT
If you're not interested in precious metal mining stocks, or stocks in general — and trust me, I get it — then this interview is not for you. As we know, guys like Andy Hoffman, Chris Duane and Bix Weir are NOT bullish on stocks, in fact, they advise GETTING OUT of the market while you can. Other investors like Eric Sprott, Rick Rule, Ron Hera and Bill Murphy see a place for stocks – in fact, they see huge opportunity for massive wealth building with carefully chosen mining stocks. In this exclusive interview we talk with the Chairman of Brazil Resources and CEO of Uranium Energy Corp Amir Adnani to get his take. Amir also addresses QE3, Central bank gold accumulation and precious metals prices in the current 'print to infinity' environment. Here's where you can learn more about Amir Adnani and his companies Brazil Resources and Uranium Energy Corp.
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| Gold Trades to New High in Tight Range Posted: 19 Sep 2012 10:03 PM PDT courtesy of DailyFX.com September 19, 2012 01:27 PM Daily Bars Prepared by Jamie Saettele, CMT Gold eked out a new high today as the market (like most markets) has experienced quiet consolidation this week. Keep the highs from February (1790.55) and November 2011 (1802.80) in mind but today’s new high and immediate selloff is consistent with additional sideways / downside action. LEVELS: 1715 1737 1747 1791 1800 1825...
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| Gold Seeker Closing Report: Gold and Silver End Near Unchanged Posted: 19 Sep 2012 10:00 PM PDT Gold climbed $8.73 to $1779.33 in Asia before it fell back to $1763.10 just after this morning's housing data was released, but it then bounced back higher in midmorning trade and ended with a loss of just 0.01%. Silver saw a slight gain at $34.958 in Asia before it fell back to $34.27 in early New York trade and then also bounced back higher, but it still ended with a loss of 0.49%.
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| QE3: gold to move onwards and upwards but inflation likely too Posted: 19 Sep 2012 09:00 PM PDT Gold price to rise to record heights as the latest open ended Bernanke boost continues but watch out for accompanying inflation (which could be part of the policy). by Lawrence Williams, MineWeb.com
The gold commentators who have been at the bullish end of the investment spectrum have all, without exception, come out with positive comment on the prospects for gold market. This follows the latest U.S. Fed moves to provide for the virtually open-ended purchase of around $40 billion each month of mortgage-backed securities to help boost employment and drag the U.S. economy kicking and squealing from its seemingly recessionary path. Indeed the Fed went even further saying that it would undertake additional asset purchases and employ other policy tools until the outlook for employment improves substantially – as well as continuing with Operation Twist designed to keep interest rates at the current extremely low levels. As New York state-based gold analyst and commentator Jeff Nichols notes in his latest commentary (see www.nicholsongold.com) : "The Fed's newly adopted quantitative easing (QE3), unlike QE1 and QE2, is open-ended and unlimited. It will continue until there is evidence of healthy employment market conditions – which could be years away. And, it may include other policy tools that remain undefined."
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| Why Gold Is Heading Higher & Governments Can’t Stop It Posted: 19 Sep 2012 08:30 PM PDT from KingWorldNews:
Today legendary value investor Jean-Marie Eveillard, who oversees $60 billion, told King World News, "As long as the monetary policies continue to be mindless, the upside (for gold) continues." He also said, "If governments try to make ownership of gold difficult or impossible, it will be much more difficult to do so than it was in the time of Roosevelt in the 1930s." Here is what Eveillard had to say: "Well, it seems that almost everybody is 'all in.' Mario Draghi is all in, Bernanke is all in, in the sense that both of them have announced 'unlimited' purchases of various assets. The Japanese, who believe they yen is too strong, they may be tempted to adopt a very easy monetary policy." Eveillard continues @ KingWorldNews.com
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| Very Bullish Long-Term Outlook for Silver Stocks Posted: 19 Sep 2012 08:19 PM PDT While we have written about Silver here and there, we have not covered it publicly in over a year. The market made an obvious cyclical top last spring and the tremendous gains from late 2008 into 2011 would need to be corrected and digested. Read More...
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| Retail Investors "Just Say No" To Bernanke's Artificial Wealth Effect Posted: 19 Sep 2012 07:34 PM PDT And so the great standoff continues. On one hand, the Chairman will literally do anything and everything to get the retail investor to break their 4 year boycott of stocks, and come rushing back to the artificial and fabricated safety of an endlessly rising market: after all he has gone so far as to implicitly guarantee that there will never be a -1% day in the market ever again: all natural market forces will be crushed in the pursuit of the great asset bubble-based "wealth effect." On the other hand, the retail investor, older, wiser, and most importantly poorer, observing inexplicable and unpunished daily flash crashes across the numerous 'highly frequently traded' asset classes, still recovering from a market in which everyone told him to buy only to see a 50% loss in months, with ever less disposable income, is no longer interested in said "wealth effect" proposition, or any other proposition premised on the artificial manipulation of the political construct once upon a time known as the market, no matter how many personal guarantees of perpetual QEasing the Chairsatan will hand out. The culmination: the week ended September 12 domestic equity mutual funds saw the 8th consecutive outflow from stocks, amounting to $2.8 billion, and 32nd outflow of 37 weekly readings in 2012. The brings the total cumulative outflow year to date to $92 billion. The same period in 2011 had a total outflow of $79 billion, even though the market now is not only higher than it was in 2011, but the highest it has been since 2007. Past two years:
And longer-term:
Of course, if the retail investor was still as dumb as everyone believes is the case (and still had money to invest in stocks), this cumulative outflow would be far smaller. It isn't, and that in itself is a testament that more than the absolute level of the S&P, the now virtually extinct investor class has always been far more interested in knowing how it got there. It appears that dollar dilution and outright manipulation just don't cut it when trying to inspire confidence in investing in stocks any longer. Or ever. Who would have thunk it... Sadly what this means is that the lunatics in the Marriner Eccles building, who will not take no for an answer, will continue with their artificial inflation of equities, until such time as the retail herd comes storming back. Which it won't, and can't. And the charade will continue until it can no longer be perpetuated. At that point equities will finally tumble to fair values, and then, and only then, will the retail investor finally return to the stock market.
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| Posted: 19 Sep 2012 05:34 PM PDT From John Goltermann of Obermeyer Asset Management (pdf format) The Experimental Economy On the heels of last Thursday's Fed announcement, there has been much commentary on the whys and wherefores of a new quantitative easing (the so-called QE3). Rather than re-hashing well-covered ground, I want to instead discuss the potential effects and unintended consequences of this policy and how it may impact the investment landscape going forward. Suffice it to say that the Fed had its reasons. QE3 evidences a belief in the so-called "wealth-effect" – the idea that one will spend more if he/she feels wealthier – and the Fed also believes it can contain any negative consequences. However, others would argue that it's another shot across the bow of our foreign lenders that we are willing to engage full-out in a currency war as this policy clearly weakens the U.S. dollar. Because the Fed has embarked on a path with little historical precedent – where a central bank has signaled the intent to expand its balance sheet as much as it needs to – we are all now part of an experimental economy. Leading up to the announcement, weak U.S. economic data had kept rates low and the bond market strong, while also lifting the share prices of income-oriented investments such as dividend stocks, REITS and MLPs (which are generally preferred by reluctant risk takers). Residential real estate also continued to bottom bounce, but a recent rally in bank equities signaled that bank balance sheets had begun to improve. This all by itself could have caused the credit environment to loosen a bit without quantitative easing, which could have easily led to increasing real estate prices, creating a self-perpetuating positive feedback loop. Of course, the Fed may know something we don't know.
Remember: In 2007, declining share prices of bank equities revealed a problem in the credit environment and presaged the crash of real estate and stock prices, and the recession of 2008- 2009 (see chart below). Today's increasing bank equity prices could in fact signal the reverse – rising confidence and improved overall risk appetite.
What is hard to know, however, is how much consumer, business and investment confidence will materialize while we have 1) a highly interventionist central bank, 2) a government that tries to cajole and regulate economic incentives, 3) a lack of clarity on future policy and 4) a price discovery process that has been corrupted by interest rate manipulation. Ironically, the weak data has juiced commodity prices and gold more strongly than the stock market as a whole because many participants (correctly) positioned themselves for a quantitative easing announcement, which they got on September 13th. As the hope and hype of the iPhone 5 launch occupied the bulk of financial media air time leading up to the Fed meeting, materials, energy and precious metals stocks had been quietly outperforming by a wide margin because a tough economy means an activist Fed. Although QE3 and a relatively quiet period for euro-headlines have bolstered investor confidence, this has been offset somewhat by recent unrest in the Middle East, vitriolic political rhetoric domestically, and a still-unaddressed fiscal cliff. The end result: many investors continue to sit on their hands while riskier assets rally. Interestingly, while U.S. GDP muddles along at a sub-2.0% growth rate and while Europe enters a recession, oil prices have held firm at around $100/barrel, copper prices have stayed elevated at $3.85/lb. and the CRB (Commodity Research Bureau) Index is above pre-2008-crash levels (see chart on following page). To us, this signals that 1) it is not the U.S. and European economies that will drive future commodity prices, and 2) when speculators get a whiff of quantitative easing, their first reaction will be to bid up the prices of key commodities in order to hedge themselves. Unfortunately, this latter behavior feeds into the supply chain and hurts those who spend larger percentages of their income on food and fuels. It is for this reason that quantitative easing may simply amp up the level of speculation in the financial system and hurt the middle class instead of juicing the real economy. It could also increase income disparity, which itself weakens the economy, presenting the Fed with the ongoing dilemma of policy ineffectiveness.
While it's not clear that the Fed can do anything about long-term unemployment, it's not shy about trying. The Fed has been highly accommodative for twenty years, but unemployment is far higher now than it was at any time during the past two decades. Going forward, the Fed's stance risks its credibility with its foreign lenders. This is a caution that seems to have been thrown to the wind. This time, the quantitative easing experiment commits the Fed to buying $40 billion of mortgage-backed securities per month (it didn't say which securities), a strategy that moves the U.S. economy further away from being market-based, towards one that is centrally planned out of Washington. In addition to judging potential investments based on their fundamental merits and prices (and what the prices imply about others' assumptions), investors must now also factor in political motivations and central bankers' economic theories when they decide on their risk allocations (which are the good risks and which are the bad). As we have often emphasized, by keeping interest rates below the actual increase in the cost of living, people are incentivized to consume now instead of later (when they would have to pay a higher price) and to take risks because of the insufficient returns offered on cash and savings vehicles. Policy essentially forces people to borrow from the future and, as we now know, has in turn caused massive capital misallocations as evidenced by the obvious bubbles in tech stocks and housing. Where Fed policy has succeeded is in enriching many financial services providers (and businesses within the financial service ecosystem) at the expense of savers and retirees. This is why we see real estate prices in New York, London, Aspen and Cap d'Antibes surging while those in Chicago and Cleveland remain lackluster. This is why we see the market prices for Picassos continuing to explode while the automobile industry flatlines. Those who earn $100,000,000 don't buy proportionately more cars relative to their incomes than those who earn $50,000. Actions have reactions and not all of them are good!
As we mentioned above, the Fed's launching of QE signals its belief in the wealth effect. The problem with the wealth effect is that not everyone participates equally, and it doesn't account for the skewness (pardon the statistics terminology) of wealth. In other words, average wealth might increase, but median wealth decreases because more and more people have lower real incomes while a few people have exponentially increased theirs into the stratosphere, bringing up the average. So long as the cost of living from food, energy and healthcare continues to skyrocket, more people lose their standard of living and unemployment stays high. One measurement of income disparity is reflected in the chart below:
Without getting into the mechanics of how the Gini Index is calculated, this chart reflects a dramatic increase in income disparity since 1991. A value of zero reflects a population with equal incomes and a value of one reflects maximum inequality where one person has 100% of the income. I have argued that this has not occurred due to tax policy, but rather due to Fed policy. Since 1991, the Fed has kept short-term interest rates below the increase in the cost of living (see chart below). This, in effect, forces savers to subsidize speculators and has exacerbated the problem. Some have argued that what it has really done is impoverish the people of the United States. I don't know if I would go that far, but QE3 represents the continuation of a policy that has resulted in increasing income dispersion and high levels of indebtedness.
Many consumers have made up for their income deficit with new debt, so Fed policy could also largely account for the excessive overall debt levels that caused the entire financial system to become fragile and attempt to adjust itself in 2008. Now, without real income growth or debt expansion potential, households have a limited ability to fuel much growth in the 73% of the GDP that depends on consumer buying. The irony is that the Fed, through QE, has signed us all up for low economic growth rates, which it is using QE to address. We are not sure how that cycle will break. It's also questionable whether Fed policy positively impacts the overall employment situation. If you look at the labor force participation rate, you'll see that it has dropped significantly under a highly accommodative Fed and is currently at the lowest level in thirty years.
Moreover, enrollment for disability income (SSDI) has skyrocketed since the recession ended in 2009. While certainly not true in every case, disability payments have been substituted for long-term unemployment benefits for some workers who struggle to find employment and drop out of the labor pool. Again, twenty years of an accommodative Fed has seemingly had little positive impact on today's employment situation.
The point of all this is that while financial markets celebrate the effects of QE3 and bid up all sorts of asset prices, the wealth effect won't necessarily benefit everyone equally and may further contribute to an income disparity that acts as a drag on the real economy. This has a self-reinforcing political effect as more and more people are forced to sign up for government benefits as their opportunity set diminishes, as interest rates are kept at zero and as economic growth remains low. Ultimately, it is not our job to criticize Fed policy but rather to manage assets as best as we can, given how the Fed views the world and what it is likely to do. Our investment process on the equity side is to establish positions in well-managed businesses with good assets that have pricing power, but that can also survive and thrive in a slow-growth environment. It is also important to know that the current Fed policy has special consequences and risks. One of the unintended consequences of such an accommodative Fed is that it has significantly benefitted the economies of, and terms of trade for, our emerging-market trading partners as it essentially incentivizes investment capital to move abroad in search of its highest and best use. This fuels foreign economic development, infrastructure, education and health care systems – making them more competitive on a global scale. We seek to capitalize on this trend (and protect our clients' wealth) by owning materials firms, infrastructure firms, financiers that do business in emerging markets, agricultural businesses and brands that are highly coveted outside the U.S. And finally, we strongly believe that precious metals belong in everyone's portfolio in light of the distinct risks that quantitative easing and a weak dollar bring. To deny these risks and avoid an allocation to precious metals could be extraordinarily risky as the grand experiment continues and the outcome remains uncertain.
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| MARKETS ARE WAITING FOR THE OIL CYCLE TO BOTTOM Posted: 19 Sep 2012 05:33 PM PDT At this point I think even the most diehard perma bear has to admit that my cycles technique has navigated the markets almost perfectly. When everyone was calling for the end of the commodity bull market this summer I correctly predicted what we were seeing was just a move down into a three year cycle low that would soon bottom and generate a tremendous surge higher. In May and June I warned traders to watch the oil cycle as it would govern the rest of the commodity markets, and the three year cycle would bottom along with the intermediate oil cycle.  I also warned at the time that the dollar's three year cycle would likely top at about the same time as the CRB bottomed. This also has come to pass and the dollar is now set up to drift generally lower into its next three year cycle low in 2014. As I have outlined previously, this should drive the extreme inflationary scenario as commodities build into a final parabolic spike, as Bernanke's monetary policy slowly destroys the purchasing power of our currency.  When everyone was calling for a bear market in mining stocks, I pointed out the 1-2-3 reversal that was setting the stage for a major bottom and once in a lifetime buying opportunity.  While many others were predicting $1400-$1200 gold I correctly spotted a B-Wave bottom in progress.  Now my cycles system is signaling that all markets are again waiting for the intermediate oil cycle to bottom.  Once it does we should see another strong leg up in the CRB, another leg higher in stocks (possibly to test the $1500 level), and probably a final surge in gold to test the all-time highs at $1900 (expect a brief move down into a daily cycle low later this month before the final surge into an intermediate top).  SMT premium newsletter. $10 one week trial.       
This posting includes an audio/video/photo media file: Download Now | ||
| John Mauldin's Prescription for Avoiding Economic Catastrophe Posted: 19 Sep 2012 05:23 PM PDT The Gold Report: Back in January you said the European Union (EU) would have to make serious political decisions with "major economic consequences" in 2012. Is the EU making those decisions and what is your prognosis? John Mauldin: It is doing its best to avoid making decisions, but is being forced to make them, ad hoc. The EU allowed the European Central Bank (ECB) to print money to monetize debt. The ECB is buying time for governments to achieve structural reform. Structural reform, not the debt, is the problem. The debt is a symptom of bad policies, of a system set up for failure. The EU translated a theory into fact, and the theory did not work. TGR: Is that theory the EU itself? JM: The theory is the monetary union. If the EU had just left the trade union alone without trying to layer the monetary union on, it would have been just fine. But the EU wanted a single currency. It was part of the Europhiles' dream. The EU thinks the monetary union is the sine qua non and i...
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| The New Crisis Bank Bailouts Begat Posted: 19 Sep 2012 04:12 PM PDT September 19, 2012
According to the article, even though stocks are getting pumped up to their highest level in nearly five years… surveys conducted by people who care about this kind of thing say investors fear the "potential growth-crimping one-two punch of rising taxes and government spending cuts set to kick in Jan. 1″ will impact their portfolios more than the lack of new jobs being created in the economy. Next week, they'll probably be hyped up about Iran again or something. The good thing about being a cynic is you don't get caught up in these fuzzy-thinking debates. We even had to look up the term "fiscal cliff" to find out its DNA. It's a term Democrats apparently wield to scare voters into thinking they'd be better off with higher taxes. Today, The 5 opens with a look at a story that could have much more far-reaching implications for your wallet and your portfolio than the "fiscal cliff" might ever have.
"It all began in 2008," Mr. French goes on, "as it usually does. "During the crash, the FDIC instituted the TAG (Transaction Account Guarantee) program. TAG provides unlimited coverage for noninterest-bearing transaction accounts. These are typically checking and payroll accounts for corporations and government entities and possibly large personal accounts. "Taxpayers are backing the equivalent of the federal deficit in TAG deposits alone," Doug explains. "The vast majority of these deposits are held by the top five banks."
"How has this changed the money market?" Doug asks, letting Jim Grant explain: "Zero-percent interest rates and blanket FDIC guarantees of bank deposits reconfigured what used to be a market in short-dated IOUs of the private sector," writes Grant in his latest Grant's Interest Rate Observer. "Today's money market is increasingly a market of short-dated IOUs of the public sector." "Corporate cash, then," Doug writes, "has been redirected from productive uses in the private economy toward lying fallow in large bank balance sheets." "When a given claim yields nothing," Grant continues, "the prudent investor will roll Treasury bills or — functionally the same thing — lay up deposits at a too-big-to-fail bank."
"According to the FDIC," Doug continues, "noninterest-bearing deposits for the top five banks have swelled by over 100% since 2008, when the FDIC put TAG in place. You can get an idea of the shift by looking at the demand deposits at commercial banks generally.
The big picture: The FDIC Deposit Insurance Fund (DIF) is now $22.7 billion, but it represents only a tiny fraction of the $7.1 trillion in total deposits it backstops. Heh. The Problem Bank List website sums it up thus. The DIF:
"TAG," Doug explains, "the umbrella in the metaphor, is scheduled to expire at the end of this year. Like so many other government intrusions, it was a temporary fix. "Two years later and bankers are addicted and don't want to give it up."
"Are the politicians worried? Nope. TAG has plenty of supporters on Capitol Hill. "Far from supporting economic growth, as supporters of TAG suggest, the FDIC insurance for TAG-eligible deposits actually spurs unsafe and unsound banking practices. In the case of JPM, the result of the nearly 10% increase in total assets caused by the 'flight to quality' encouraged by TAG was a significant increase in risk taking. "Banking lobbyists may cry for an extension of the TAG program to stimulate economic growth or jobs. In reality, TAG is simply another act of government intervention to benefit the big banks at the expense of small banks and customers." On Jan. 1, 1934, deposit insurance went nationwide with deposits up to $2,500 covered (roughly $41,000 today). "Now," Mr. French writes, "not quite 80 years later, U.S. deposit insurance coverage has gone from an inflation-adjusted $41,000 to unlimited. "What backs up this whole system? Not capital. Not wealth. It's just paper, paper printed by government. With unlimited deposit insurance, that financial nuclear explosion can happen any minute," Doug concludes. "And you will be left to pick up the pieces." Ah, yes. At least the bailouts were successful. Get the full scoop on what this means here.
Those with $30 million or more climbed to 187,380, but their overall wealth fell to $25.8 trillion, a 1.8% drop. This sum is bigger than the U.S. and Chinese economies combined, Wealth-X claims.
Year's growth of "Ultra High Net Worth Individuals" (UHNWIs). Those in the $200-499 million bracket were hit hardest, as their numbers dropped nearly 10% and their fortunes shrank almost 12%. Bummer. The uber rich got even more so. The number of billionaires globally rose over 9%, to 2,160. Collectively, their wealth grew 14%, to $6.2 trillion… nearly half of annual U.S. GDP. What they are buying? In light of Europe's problems and U.S. economic "recovery" (sic), the rich are moving "away from speculative investments [derivatives] into private companies, commodities and property." Might be good trends to follow.
"One57," NYT reports, "a 1,004-foot tower under construction in Midtown Manhattan, will soon hold the title of New York's tallest building with residences. But without fanfare from its ultraprivate future residents, it is cementing a new title: the global billionaires' club…
One57: The easiest place to look down your nose on New York. "The billionaires' club includes several Americans, at least two buyers from China, a Canadian, a Nigerian and a Briton, according to [developer Gary] Barnett and brokers who have sold apartments in the building, at 157 W. 57th Street. Mr. Barnett said that at least a few buyers were 'significant Forbes billionaires'… "As New York has emerged from the downturn," the NYT continues, "high-end real estate has become a magnet for the world's superrich, who are looking for better investment returns and a safe haven from thornier economic conditions in their home countries." "A lot of what is happening at One57 is about wealth preservation," Nikki Field, a Sotheby's International Realty broker said. We're confident that's not all that's happening in that building.
"U.S. homebuilding increased in August as single-family construction reached the highest level in more than two years, providing evidence that the sector is helping the tepid economic recovery," The Wall Street Journal reports. "Home Resales at 2-year High, Housing Recovery Advances," reads one Reuters headline. The news will no doubt inspire fresh fodder for the Mayer-French debate we've been on the sidelines for. If you side with Mr. Mayer, stay tuned. We're hard at work on a report that shows you how to take advantage of "a once-in-a-lifetime opportunity" in housing, as he calls it. As you'll soon see, you can grab a seat at the real estate game without having a lot of money to get started, without having to worry about deadbeat rental tenants and without ever having to fix a single leaky toilet. It's all coming your way next week. In the meantime…
The Dow is up 40 points, to 13,605. The Nasdaq is up 5, to 3,183. Gold is up another dollar, to $1,769. Silver nickel-and-dimed down to $34.57. While the pundits still debate Monday's erratic oil move, the black sludge continues its slump. It dropped four more dollars today, putting oil at $91.52.
"Of course, being who I am, I went home and built a spreadsheet to recalculate what would have happened if Dow Jones had decided to add Apple to the index instead of Cisco back in 2009. Imagine my surprise to see that the Dow [would] be over 2,000 points higher." As you know, Apple has just hit new highs, and as I write, it stands tall at a drip below $702. Last week, we mentioned JPMorgan's chief economist's note to his clients: iPhone 5 sales could add 0.33% to GDP. The latest in 'Apple Fever'? "By 2015, I see Apple going to $1,650," Ironfire Capital founder Eric Jackson pronounced. "This train is just getting out of the station." Choo-choo?
Apparently, a woman kept her father's severed body in an ice chest at her apartment for at least two years as she collected his Social Security check. The story caught our eye on The Huffington Post. "At some point," the police reported, "she cut off his hands so that identifying him would be difficult, authorities said, but she never dumped his body as she had planned." Had to be an isolated incident, right? Umnn… no. Curiosity piqued, and we found this stunning list:
Presumably none of these incidents have been reported in One57. If you're looking for, umnn… less gruesome/more legal ways to collect income, we recommend this report. After the click, you'll see that payouts run as high as three times the regular retirement income most Americans have come to accept. And the income you'll receive through this plan is far less smelly than keeping a dead spouse in the freezer. See it all right here.
"What are they protesting about — their own stupidity or naivete? Suppose they're looking for a bailout just like everyone else these days… not going to get much sympathy from me."
"How I did it, I have no idea. But I do know that in today's engineering college environment, I couldn't have done it. With so many 4.0 students from foreign countries being let in because they pay the university more tuition than we local yokels, I never would have had the grade point needed to get in in the first place. With tuition going through the roof, even if I had been admitted, I couldn't have earned enough money to pay the tuition."
"Even as a student, he always has one person on his payroll, and will provide employment to many others as he expands next year. Booze fest? No, just hard work." Cheers, Addison Wiggin The 5 Min. Forecast P.S. "This thing is the bomb," Jeffrey Tucker was raving this morning about a new can opener he just bought. How Mr. Tucker remains an eternal optimist amid all the sturm and drang of modern life is surprising. Further, his enthusiasm can be contagious… "The old can opener opens the top, right? The new kind crawls along the side and cuts it open just under the lid, meaning that you lift the top off, rather than dig around in the center and cut yourself. "This new opener requires no change in the can shape. It takes the existing reality as it has existed since our great grandparents' time and generates a totally different solution to the problem.
"This thing is the bomb." "As soon as you see it in action, you think: Of course! Of course that's how it should work! Why didn't anyone think of this before? Can opening will never be the same. Our children will never know a jagged, dangerous can top. No dog digging through the garbage will ever again cut his or her tongue. Never again will a lid fall into the beans and have to be fished out with a fork. "How did this stunning progress happen? The commercial marketplace made something new from the old. It called into existence a new reality. It's a dent in the universe made possible only through the dynamic and creative hydraulics of enterprise in a man-made world made ever improved and orderly through the spontaneous cooperation of people, without central direction. "And how much do we care? There is a video about this on YouTube: 34 views. "More to the point: Why don't we use this model of inventiveness for all of our public life? Apply it to foreign policy, prison policy, the judicial system, money and finance. We would see actual improvement in institutions that are only good at repeating failure decade after decade." Within a few weeks of Tucker joining us as executive editor of the Laissez Faire bookstore… we knew we had more on our hands than an academic with a penchant for free markets and individual liberty… so we did something radical. We shut the bookstore down and tried a much-bolder experiment… read more here.
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| Posted: 19 Sep 2012 04:10 PM PDT Gold Price Close Today : 1769.00 Change : 0.60 or 0.03% Silver Price Close Today : 34.519 Change : (0.125) or -0.36% Gold Silver Ratio Today : 51.247 Change : 0.202 or 0.40% Silver Gold Ratio Today : 0.01951 Change : -0.000077 or -0.39% Platinum Price Close Today : 1639.90 Change : 4.60 or 0.28% Palladium Price Close Today : 671.00 Change : 4.15 or 0.62% S&P 500 : 1,461.05 Change : 1.73 or 0.12% Dow In GOLD$ : $158.67 Change : $ 0.12 or 0.07% Dow in GOLD oz : 7.676 Change : 0.006 or 0.07% Dow in SILVER oz : 393.35 Change : 1.80 or 0.46% Dow Industrial : 13,577.96 Change : 13.32 or 0.10% US Dollar Index : 79.11 Change : -0.081 or -0.10% Today silver lost 12.5c to 3451.9c while the GOLD PRICE gained 60 cents (look quick or you'll miss it!) to $1,769.00. Yesterday gold gained 70c and silver gained 34.6c. Y'all see a pattern? They are churning in tighter and tighter ranges without progress. Buyers and sellers are tangled arm in sweaty arm, wrestling for control. Battle lines are drawn. For the buyers to win gold must break through $1,780, and silver through 3500 cents. Sellers win if gold closes beneath $1,750 or silver beneath 3380c. Whichever way it resolves, any the GOLD PRICE and the SILVER PRICE correction will be sharp but won't last long. Keep your eyes open for the buying opportunity. I came across this crystalline assessment of recent events from Clive Maund at http://tinyurl.com/9plwgwu "Last week was a momentous one when the financial world passed the point of no return. Right after a German court cleared the way for massive European QE to get underway, steamrollering opposition from German politicians and the German public in the process, the Fed announced not just QE3, which was expected, but open-ended and unlimited QE and suppression of interest rates over a longer timeframe. The Fed has declared open warfare not just against the dollar and savers in general, but against the entire American middle and lower classes, who will be progressively stripped of their assets and impoverished, the better to serve the interests of the banking class and the elites at large." That's better than e'er a natural born fool from Tennessee could put it. Y'all pay attention. When markets flatline, they may have run out of interested investors, but they may reveal buying and selling evenly balanced but fiercely strong. If that latter case, from flatline they will burst out in either direction most suddenly. I mention this because silver and gold fit that pattern right now. The scabby US dollar, trashy low-life of currencies, lost a tiny 8.1 basis points today (0.1%). Stopped cold at 79.40 and probably has a two or three day correction in front of it, assuming it has turned around. Euro closed at $1.3049/E0.7663, up 0.04%. Kissed back to the downtrend line today, so tomorrow must launch skyward or risk falling back to 126 where it left a breakaway gap. Actually, maybe the euro is the trashy low-life of currencies. Yen has fallen briskly away from the main downtrend line below the top fan line. Translation: it failed to make good its breakout, so the presumption of more upward gain is against the yen. Now that I think about it, maybe the yen is the trashy low-life of currencies. Shucks, all three are so trashy, who could pick? Stocks showed some life today. Dow scratched around and gained 13.32 (0.1%) to 13,577.96. S&P500 added 1.73 (0.12%) to 1,461.05. Short and sweet: stocks are setting up an epochal peak which will be followed by a crash and long bear market astonishing for its cruelty. Yes, I know the "Bernanke put" is obvious and that the government manipulates the stock market so often and so much that no real market remains, but even the mighty Bogus Ben cannot lift the weight of the world when it crashes down on his itty shoulders. 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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| Why Bernanke refuses to let oil prices fall Posted: 19 Sep 2012 04:07 PM PDT [COLOR=#800080] [FONT=Arial][COLOR=#000000]A prominent symptom of the final deflationary phase of the 60-year/120-year cycle scheduled to bottom in 2014 is, ironically, asset price inflation. While this may seem contradictory at first glance, it makes perfect sense after closer scrutiny. Asset price inflation is the central bank’s response to the destructive undercurrent of economic deflation. It requires a decisive action, as the recent QE3 initiative showed. The 60-year long wave cycle is perhaps best represented by a classic sine wave. The bottom left portion of the wave represents the ending of the preceding deflationary cycle and the beginning of a new long-term 60-year cycle of inflation. The mid-point of the sine wave is the halfway point of the 60-year cycle (i.e. 30 years) and coincides with the peak of inflation. In U.S. economic history, this occurred in the late 1970s/early 1980s and was reflected by an $850/oz. gold price (then an all-time high...
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| The Truth Behind the Romney “Gaffe” Posted: 19 Sep 2012 03:52 PM PDT Cover the kids' ears! Hide their eyes! Shuffle the weak and frail from the room! A politician running for president has uttered a heresy that brings into question the holy grail of democratic politics. Romney has failed to pretend as if the country is one big happy family that uses our glorious voting system to discover ever better ways of governing ourselves. Which is to say that Romney made a gaffe. You know the definition of a political gaffe: inadvertent and unscripted truth. That's what the supposed scandal of Romney's off-the-cuff comments amounts to. He told potential donors an unvarnished truth that everyone knows but which is not part of the official civic creed of the land of the free: "There are 47% of the people who will vote for the president, no matter what… All right, there are 47% who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it. That that's an entitlement. And the government should give it to them. And they will vote for this president no matter what… These are people who pay no income tax." The implied model here is that modern democracy is a system that enables mass confiscation of wealth by some from others. And who can doubt it? In older monarchical systems, only a tiny elite was privileged to steal from everyone else, and if they stole too much, people would get angry and overthrow them. Democracy solved the problem by granting everyone the privilege once reserved to elites. Now we can all steal from each other, and even from ourselves. This way, it is no longer clear who the enemy is. We don't know whom to blame when things get bad. There is no one to overthrow but ourselves. And things are indeed getting bad. As income falls, the household budget is ever more squeezed, we are living ever longer, and as the boomers retire, government benefits are soaring on autopilot. Indeed, the 47% figure might be low. Other estimates put it closer to half. And it is rising. A smaller percentage of household income comes from wages than ever before. Food stamps, Medicaid, unemployment benefits, disability benefits, Social Security…Tthis stuff adds up and amounts to dependency. He also helpfully noted that 47% do not pay income taxes. That doesn't mean that they don't pay tax. They are actually heavily taxed at the payroll level — a tax that pays into the very benefits that have made them dependent, a tax that has been more heavily raised under Republicans than Democrats. Everyone is taxed for every dollar earned and on the sale of nearly everything. But of course, neither party wants to talk about those taxes. Also presumed in Romney's talk: People vote their economic interest. Again, experience bears this out. If household economics don't stack up, nothing else works. Politicians have limited time and money and need to get the biggest bang for their buck. No, this is not writing off half the country, as the partisan pundits are saying. It is the mapping out of an electoral strategy based on the "median voter theorem." This is the idea that elections are won not by the partisans or extremes on either side, but by the people in the middle. This is the business of politics. It is about finding and appealing to the interests of the median voter. Shocking? If so, you have never bumped into a campaign consultant at a cocktail party. This is how they all talk and think. Indeed, this is how politics has worked for, oh, 200 or so years, and ever more so since the expansion of the franchise. In the video, Romney goes on to say that his job is to appeal to the independent 5% who will turn the election in his direction. Notice that this outlook also "writes off" all the people that he already knows will vote for him. He is also giving himself a license to put their interests on the shelf as well, at least in rhetoric. For this reason, anyone who dedicates himself or herself to getting Romney elected, as a means of protecting personal wealth from confiscation, will be sorely disappointed. Republicans as much as Democrats find ways to take what is yours. And by the way, Obama thinks the same way. Obama will never convince voters who are already dedicated to Romney, and every single Obama adviser knows this. This is a fight for the remaining 5%. And what's more, politics is business in another form. It is about giving and getting. Political parties represent interests, not ideas. But oh, how precious is American political culture! We must not hear these things. We must never be permitted to hear what is true. Instead we have a Victorian sensibility about our civic religion. We sing the national anthem, say the pledge and reflect on 19th-century mythologies about our revered Founders, because, after all, we have the greatest system of government ever conceived, one so wonderful that it should be exported and imposed all over the world. Or so we tell our youngsters. As adults, we should know the truth. Politics is a means of wealth redistribution. Electoral strategy is a race to the bottom. After all, it is emphatically not the case that Romney's chosen constituents are free of dependency. Note that he is ramping up his imperial warmonger talk in recent days. Every day, there is a new enemy that he accuses Obama of not slaying. And it's not only about the military. It is about our trading partners. He has blasted the Obama administration for being soft on China. What's this about? It's about reassuring his supportive pressure groups that he supports their interests. He will protect the American corporate class against foreign enemies who attempt to bypass the corporate oligarchs by selling cheap stuff to you and me. No, he won't let that happen. And it is about reassuring the military-industrial complex that its subsidies will continue. In fact, Romney represents a different class of dependents. Large banks. Financial institutions on the dole. Monied elites who live off cheap credit and infinite liquidity courtesy of the central bank. Either way, the rest of us get looted. The election is about who controls that margin of loot that remains after the autopilot spending administered by the permanent class of bureaucrats is finished doling out its entitlements left and right. In a way, I feel sorry for the bourgeoisie gathered in that small room to hear Romney's talk. He wanted their money — a payment in exchange for his promise to protect their wealth from the grasping hoards. But he still wanted their money. Whether he will actually do this is another matter. And why should they have to pay at all? There once was this idea called freedom. You keep what you earn. You don't live off others. You mind your own business. Society works out its own problems without politicians, police, bureaucrats, and power elites running their lives. Is what both Romney and Obama are doing a corruption of the idea of the political party? Ludwig von Mises, whose book Liberalism (a Laissez Faire Club selection) explains everything you need to know about democracy, says that this is precisely why political parties were founded. "All modern political parties and all modern party ideologies originated as a reaction on the part of special group interests fighting for a privileged status against liberalism." The best statement on this topic was framed by Frederic Bastiat: "The state is the great fictitious entity by which everyone seeks to live at the expense of everyone else." In his book, The Law, Bastiat explains that the purpose of law is precisely to prevent the mutual looting that goes by the name democracy. But once property rights are no longer secure, political elites can plunder with impunity. That's why no truly independent minded person can depend on any political machine to protect his or her interests. To keep our liberty and property from their clutches is our job. Regards, Jeffrey Tucker The Truth Behind the Romney "Gaffe" 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. ".
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| Embry notes explosion in gold shorting; Eveillard sees long rise ahead Posted: 19 Sep 2012 03:34 PM PDT 5:25p ET Wednesday, September 19, 2012 Dear Friend of GATA and Gold: Sprott Asset Management's John Embry today tells King World News that manipulation of the gold and silver markets has reached historic levels, with an explosion of paper shorting being done to flush out the paper longs. Embry says the question is how much of a floor will be put under prices by demand for real metal. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/19_Em... Also interviewed at King World News, gold fund manager Jean-Marie Eveillard says gold's long-term direction remains up, toward fantastic levels, and it will be much harder for governments to prohibit private ownership of gold than it was for the U.S. government in the 1930s. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/19_Wh... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel. The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace. Prophecy Chairman John Lee commented: "Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly." Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. For the complete company statement with full tabulation of the drilling results, please visit: http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results.... 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 GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata
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| What Mitt Romney Also Said: A Glimpse Of The Endgame? Posted: 19 Sep 2012 03:13 PM PDT By now everyone has heard the infamous Mitt Romney speech discussing the "47%" if primarily in the context of how this impacts his political chances, and how it is possible that a president "of the people" can really be a president "of the 53%." Alas, there has been very little discussion of the actual underlying facts behind this statement, which ironically underestimates the sad reality of America's transition to a welfare state. Recall Art Cashin's math from a month ago that when one adds the 107 million Americans already receiving some form of means-tested government welfare, to the 46 million seniors collecting Medicare and 22 million government employees at the federal, state and local level, and "suddenly, over 165 million people, a clear majority of the 308 million Americans counted by the U.S. Census Bureau in 2010, are at least partially dependents of the state." Yes, Romney demonstrated potentially terminal lack of tact and contextual comprehension with his statement, and most certainly did alienate a substantial chunk of voters (most of whom would not have voted for him in the first place) but the math is there. The same math that inevitably fails when one attempts to reconcile how the $100+ trillion in underfunded US welfare liabilities will someday be funded. Yet the above is for political pundits to debate, if not resolve. Because there is no resolution. What we did want to bring attention to, is something else that Mitt Romney said, which has received no prominence in the mainstream media from either side. The import of the Romney statement is critical as it reveals just what the endgame may well looks like. In response to an audience question:
Source: Mother Jones And that is how the Fed effectively took over control of the United States, as without it, it is game over. This is also why the ongoing presidential election is a farce, and has absolutely no bearing or significance for the future of the US, whose true ruler does not reside at 1600 Pennsylvania Avenue, but instead holds America hostage in a powerful Stockholm Syndrome grip from the deep recesses of the Marriner Eccles building located, paradoxically, on Constitution Avenue. Don't worry though: like any "true democracy", the real "leader" of the nation will never be eligible for popular vote. Ever.
P.S. It appears that Paul Krugman has promptly taken offense to the realization that Bernanke is "monetizing 75% of all debt." He has even promptly penned an article "Misinformed Monetary Mitt" proving the Noble prize-winning economist really has little understanding of the dynamics of debt monetization. Here is the reality: under ZIRP, all bonds with a maturity inside the guaranteed 0% envelope are essentially cash equivalents. This means all bonds 3 years and less, which as is to be expected for riskless paper, have a coupon of roughly 0% (except Fed counterparty risk of course, because the only reason they should trade above 0% is if the Fed loses control of inflation and ends ZIRP prematurely before its announced end date now sometime in 2015). When the Treasury issues them the buyers takes on ZERO risk, thanks to ZIRP. This is also the reason why the Fed sells $45 billion in short-end paper each month, as part of Twist sterilization. In essence the only debt issuance that matters for the US Treasury is that of longer-dated issuance. This amounts to roughly $45 billion per month in the 10-30 year window, and is virtually all the debt that the Fed monetizes on the long-end as part of Twist. This is also knows as Flow as we have explained repeatedly, but we don't except someone still stuck teaching 1980s economics to understand this (Goldman explained this here) But this is not news: back in February we noted that Under Twist the fed has monetized 91% of all LT gross issuance.
Between Twist 1 and 2, the Treasury has not auctioned off one dollar of gross LT debt to the private market, as evidenced by the total inventory of 10-30 year paper which has remained fixed at $650 billion. It is this liquidity limitation that forced Bernanke to monetize not more TSYs, but to commence buying Mortgage Backed debt. The fact that Krugman does not get this simplest fact about the nuances in the Fed's monetization activities demonstrates just how dangerous it is to assume that just because someone has been awarded a Nobel, they automatically are an expert in something, anything, especially involving numbers. And because we enjoy spreading knowledge, and for the benefit of even the most math-challenged Economics professors, here again is a simple clip showing how Romney is actually lowballing the real number of relevant gross issuance, which is nearly all in the critical 10-30 year ballpark, and where the Fed will soon be virtually the sole marginal market player.
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| Why The Cluff Deal With Samsung Is A Game Changer In The Gold Industry Posted: 19 Sep 2012 03:11 PM PDT Jim Sinclair's Mineset My Dear Extended Family, Why the Cluff deal is a Game Changer in the gold industry: The scenario that gave comfort to hedge funds is the capital intensity of building a mine. That means all money in before profit out. The hedge funds believed by raiding the price of the shares of gold explorers and junior gold producers that they could strangle the company's ability to raise funds free of major dilution, if at all. Unable to raise funds, the company would not be able take a property to the level of Definitive Feasibility where it is financeable by various industry standard methods free of the issue of significant common shares. Hedge funds that undertook short and distort did so feeling they had no risk because they had crippled the company's ability to finance. We are all familiar with the dirty tricks used, selling of good news and capping activities undertaken in order to keep the company from it historical financing methods....
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| Why The Cluff Deal Is A Game Changer In The Gold Industry: Posted: 19 Sep 2012 02:53 PM PDT My Dear Extended Family, Why the Cluff deal is a Game Changer in the gold industry: The scenario that gave comfort to hedge funds is the capital intensity of building a mine. That means all money in before profit out. The hedge funds believed by raiding the price of the shares of gold explorers Continue reading Why The Cluff Deal Is A Game Changer In The Gold Industry:
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| Support for GATA in Jay Taylor's Internet radio interview with Peter Grandich Posted: 19 Sep 2012 02:52 PM PDT 4:45p ET Wednesday, September 19, 2012 Dear Friend of GATA and Gold: Financial newsletter writer and Internet radio host Jay Taylor and market analyst and resource company consultant Peter Grandich discuss developments in the gold market on Taylor's program today, discussion that includes enthusiastic support for GATA. Audio of the program is posted at VoiceAmerica here: http://www.voiceamerica.com/episode/64391/peter-grandich-talks-stocks-bo... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata 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 Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel. The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace. Prophecy Chairman John Lee commented: "Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly." Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. For the complete company statement with full tabulation of the drilling results, please visit: http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results....
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| Bank of Japan’s latest yen-bashing move lasts just 8 hours Posted: 19 Sep 2012 02:30 PM PDT 19-Sep (MarketWatch) — Japan is one country that openly wants a weaker currency. So the Bank of Japan's latest asset-purchase program should have weakened the yen, since such quantitative easing is usually seen as devaluing a country's currency because it's similar to printing money. The dollar initially gained against the Japanese currency Wednesday, rising to 79.23 at its highs of the day. But it turned back down in early U.S. trading as the dollar fell more broadly. The greenback last traded off 0.5% to 78.41 yen. The euro erased an early rally to fall 0.4%, changing hands at ¥102.43, while the British pound dropped 0.7% to ¥127.12. For a 10-trillion yen boost to its asset-purchase plan, that's a pretty short-lived bump — and not much of one. [source]
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| Gold Daily and Silver Weekly Charts - Romulus and Remus Posted: 19 Sep 2012 02:23 PM PDT | ||
| Embry - We’re Witnessing A Historic & Frightening End Game Posted: 19 Sep 2012 02:12 PM PDT  Today John Embry gave a stunning interview to King World News. In it he made some rather frightening predictions. Embry believes, "... we are in the early stages of a global 'Weimar' event." Embry stated, "This is very historic what's happening here," as we have now entered "the end game." Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: "I think the attempts to restrain the gold and silver prices here are the most intense they've been in the last 15 to 18 years. This is because we are now in the end game. Everybody has now stated they will have QE to infinity."
This posting includes an audio/video/photo media file: Download Now | ||
| Oil Plunges as Supplies Rise and Saudis Pump More Posted: 19 Sep 2012 02:11 PM PDT 19-Sep (CNBC) — Oil prices fell sharply on Wednesday, extending their slide as U.S. crude supplies surged more than expected and Saudi Arabia continued efforts keep prices in check. U.S. light, sweet crude skidded nearly 4 percent, falling below $92 a barrel. …The selloff came as the U.S. reported that crude supplies jumped last week by 8.5 million barrels — far more than expected. There also has been a dramatic decline in distillate demand, which is down 11 percent from a year ago. [source] PG View: Oil's plunge is blunting QE3′s positive impact on gold. One might deduce from the sharp drop in energy prices that markets have waning faith that global central bank measures will reinvigorate growth.
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| Posted: 19 Sep 2012 02:07 PM PDT Jim, Thanks so much for the continuing education and information. I could not help but notice the very strong performance of my junior gold/silver shares today despite a ho-hum to down day in the metal prices and general markets. There have been many, many days in which small down moves in gold meant big Continue reading Jim's Mailbox
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| Posted: 19 Sep 2012 02:00 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! September 19, 2012 09:56 AM [LIST] [*]The data behind the 47% [*]Terminally ill U.S. dollar has only one path – down [*]QE 3 = $2,400 gold [*]Race to debase [*]The trouble with printing money [*]Grandich Publications has ceased working for North American Nickel today. [*]Due to “finally” having to do my civic calling and be available for jury duty, I had to drop out of my two speaking engagements in Chicago this week and Toronto next. It no longer *works to simply answer “hang em” when asked what would you do during jury selection questionnaire. Perhaps saying hang em was a bit too strong for a jaywalking case! [/LIST] [url]http://www.grandich.com/[/url] grandich.com...
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Do you want to know what QE3 is going to do to the price of gold and the price of silver? Well, you can read what the financial experts are saying below, but it doesn't take a genius to figure out what is likely to happen. During 
The latest forecast by LEAP/2020 predicts the global economy will be 'sucked into a black hole' by October, that the Fed's QE∞ will be ineffective at staving off the collapse, and that all signs indicate a massive downturn ('without modern historical equivalent') in the economy is '
When it comes to materialism, has any nation ever surpassed what we are seeing in the United States right now? We define our lives by how much stuff we have, to a large degree our personal and business relationships are defined by how much money we make, and even most of the important dates on our calendar are all about materialism. Just think about it. We throw outrageous birthday parties for our kids and we shower them with gifts. Most of our "holidays" have become highly materialistic, and the biggest holiday of all in our society, Christmas, is an absolute orgy of materialism. We make lists of the "
"Investors Now Fear Fiscal Cliff More Than Weak Economy," reads a headline on USAToday this morning.
"This is a direct result of Ben Bernanke's policy of zero interest plus the FDIC/congressional policy of unlimited deposit guarantees," Doug points out. "Corporations are trading interest for safety, or at least the illusion of safety."
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