Gold World News Flash |
- Some Of The Really Bad Things That Could Happen If You Do Not Prepare For The Coming Economic Collapse
- Jim Willie: Segregated STOCK ACCOUNTS Will Be Stolen Next!!
- Gold Makes Resistance Key Support
- Gold: Buy, Hold Or Sell? Update #30
- Silver Update 9/4/12 Student Slavery
- Ben Leaves Us Guessing; Will He or Won't He?
- The Direction of Silver Prices Before QE Forever
- Gary Johnson on the Looming Economic Collapse
- GATA: Silver Delivery Problems Expected
- The German Economy Tanks, The ECB Throws Gasoline On The Fire, And Eurozone Bailouts Enter Phantasy Land
- 'Currency Wars' author Jim Rickards to speak at CMRE meeting in NYC Oct. 18
- Spectacular Home Runs In Gold, Silver & Oil
- Devaluation policy guarantees higher commodity prices, Rule tells King World News
- HOW LONG?
- Is The Fed Responsible For The Great Financial Crisis?
- Kitco News' Daniela Cambone interviews GATA Chairman Bill Murphy
- Guest Post: Bernanke: "We Can't Really Prove It, But We Did The Right Thing Anyway"
- Rick Rule - Spectacular Home Runs In Gold, Silver & Oil
- The Zero Hedge Daily Round Up #119 - 04/09/2012
- Jackson Hole & GOLD
- Will We Collapse by August 7th 2013?
- Near-Term Targets for Gold, Silver and Mining Shares
- The Silver and Gold Price Corrections Have Ended — The Next Rally Has Begun — Buy More
- Gold Seeker Closing Report: Gold and Silver Gain With Dollar
- Oil's Rising Baseline
- Fedsanity!
- Gold Daily and Silver Weekly Charts
- Bernanke Plays it Perfectly
- The mint is a ‘go' for the first 100,000 rounds of the SLA's new weapon against banksters…
| Posted: 05 Sep 2012 02:00 AM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Jim Willie: Segregated STOCK ACCOUNTS Will Be Stolen Next!! Posted: 05 Sep 2012 12:35 AM PDT from Silver Doctors: The Golden Jackass makes the SHOCKING claim that perhaps 60,000 tons of allocated, segregated gold have been improperly used by the cartel to settle Asian margin calls! He states that we will see $5,000/oz gold not from quantitative easing or the public entering the bull market, but from the cartel banks replacing what they improperly used in their leveraged games from allocated gold accounts! Willie also informed The Doc that it appears that Morgan Stanley was used by the cartel to prevent a collapse in treasury bonds in 2010, and believes that Morgan Stanley was set up at the time by cartel banks as the next major financial firm to fail. He states that there are no buyers for treasury bonds, and that the only demand for treasuries are interest rate swaps creating false, artificial demand, and that these IR swaps were what caused the 10 year rally & 'flight to safety' in 2010.
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| Gold Makes Resistance Key Support Posted: 05 Sep 2012 12:12 AM PDT Graceland Update
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| Gold: Buy, Hold Or Sell? Update #30 Posted: 05 Sep 2012 12:08 AM PDT
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| Silver Update 9/4/12 Student Slavery Posted: 04 Sep 2012 11:16 PM PDT | ||||||
| Ben Leaves Us Guessing; Will He or Won't He? Posted: 04 Sep 2012 11:00 PM PDT by Chuck Butler, Casey Research:
I told you all last week that Big Ben Bernanke wasn't going to repeat his 2010 Jackson Hole speech, and announce another round of stimulus for the economy… I also told you that the event risk was downward, if Big Ben left a sour taste in the mouths of those that thought he would announce more stimulus here. And soon after his speech, the euro, which had traded up to 1.2625, plunged, and Gold & Silver saw unwinding of trades that were made in hopes that the stimulus would be announced. But… then they read what he had to say… and soon, the currencies and metals were getting bought up again a turn-around in less than an hour! Here's my take on what he said… and no, he didn't follow my script! I think Big Ben left little doubt that his is looking to the next policy meeting in September (9/12), to announce more stimulus… I had told you that is what I thought would happen, and so far, I was bang on… I guess all that remains to be seen is what happens on 9/12!
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| The Direction of Silver Prices Before QE Forever Posted: 04 Sep 2012 10:00 PM PDT by Dr. Jeffrey Lewis, Silver Seek:
The price of silver has moved up from $27.50 seen just a week ago to stage a test of the $31.00 [$32.00] level. Although technical traders may consider this market currently overbought, the fact remains that a bull market can stay overbought for quite a long time. It will be interesting to look back on this rally that began in the wake of the Financial Times' story about the CFTC's lack of evidence and impending conclusion of its four year study into manipulation of the silver market. As it stands, the big shorts remain active by virtue of the declining open interest. If this rally is sustainable, then the shorts seem to continue hoping they can cover at lower prices. Unless, of course, they are simply handling customer business that can readily stomach the paper losses.
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| Gary Johnson on the Looming Economic Collapse Posted: 04 Sep 2012 08:20 PM PDT from WeAreChange: Libertarian Presidential Candidate Gary Johnson talks to WeAreChange about the pending economic collapse and U.S. intervention in the Middle East.
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| GATA: Silver Delivery Problems Expected Posted: 04 Sep 2012 08:20 PM PDT - Bill Murphy of the Gold Anti Trust Action Committee (GATA) told Kitco News Wednesday that he expects to see a huge problem with JP Morgan's large silver short position should the longs stand for delivery, adding that "the scandal is going to break sometime this month". He also commented on problems getting physical silver in [...] 
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| Posted: 04 Sep 2012 08:11 PM PDT Wolf Richter www.testosteronepit.com Slovenia joined the Eurozone in 2007, went on a borrowing binge that blind bond buyers eagerly made possible, dousing some of its two million people with riches, creating a real estate bubble that has since burst, and driving up its external debt by 110%. And in October, it may go bankrupt, admitted Prime Minister Janez Jansa. Because borrowing binges can last only so long if you can’t print your own money. The sixth Eurozone country, of seventeen, to need a bailout. But it’s just a speck, compared to Spain, which will strain the bailout funds, and Italy, which is too large to get bailed out. The other option is the European Central Bank. Its printing press—the one it is not supposed to have—could easily bail out the once blind but now seeing bondholders. As in all bailouts, workers and taxpayers would get a haircut. And in Germany, the debate itself may tear up the Eurozone—just as its economy is tanking. New car sales in Germany had been holding up well through June—a miracle in face of the fiasco playing out in the Eurozone’s auto industry. But they caved in July; and instead of miraculously recovering in August, they caved again: down 4.7% from August 2011 and down 8.6% from July. Ominously, sales of medium-heavy and heavy trucks, a thermometer of the business investment climate, fell off a cliff: -18.8% for trucks over 12 metric tons, -15.1% for trucks over 20 tons, and -9.4% for tractors (now down 5% for the year!). Retail sales, which had been on a roll through May, stalled in June, and skidded in July. Early indications are even worse for August: retailers’ negative sentiment worsened for the fourth month in a row. They suffered from a nasty margin squeeze, given the dual pressures of wholesale price inflation that “increased sharply,” and heavy discounting, as Germans struggle to make ends meet [read.... The “Pauperization of Europe”]. And manufacturing, the vaunted engine of the German economy, after a rout in July, was hit by another “deterioration in business conditions” in August. It recorded the fifth month in a row of job losses. And export orders plummeted at the “steepest rate since April 2009.” Alas, 2009 brings up horrid memories. In the first quarter that year, GDP plunged 3.8% from the fourth quarter of 2008, when it had already plunged 2.1% from the third quarter. Annualized, those two quarters added up to a double-digit collapse in GDP, the worst in the history of the Federal Republic. The German economy, which lives and dies by its exports, was saved not by hard-working Germans or smart managers or a superior system, but by the drunken stimulus frenzy in the US and China. German companies and their suppliers sucked with all their might on a wide variety of programs, from green-energy boondoggles to the cash-for-clunkers fiasco. But now, without such foreign deus ex machina, Germany’s ability to bail out the Eurozone is more than ever in doubt. So, the ECB’s latest machinations hit fertile ground when they were leaked after ECB President Mario Draghi outlined them to the European Parliament late Monday: buy up Spanish and Italian debt with maturities of up to three years—up from the six to 12 months proposed at his last press conference. It worked. Italian and Spanish yields on two-year debt dropped below 2.8%, down from over 7.5% and 6.9% respectively this summer. Central-bank market manipulation at is best. Crisis solved. In phantasy land. Until reality sets in. Namely a rift in Germany. Chancellor Angela Merkel and a slew of other politicians support it more or less tacitly. But the Bundesbank is having conniptions; printing money to fund government deficits violates EU treaties that limit the ECB to the single mandate of price stability. It just can’t find, not even between the lines, any traces of a hidden second mandate, such as funding government deficits. Bundesbank President Jens Weidmann—”I cannot see how you can ensure the stability of a monetary union by violating its legal provisions,” he’d said last November—has hardened his attacks on bond buying programs. With broad public support in Germany. And Merkel, who wants to hang on to her job more than anything else, will tread carefully. Yet, if Germany skids into a deep export-driven recession, all bets are off. The world is becoming “less stable,” with a “bloated” financial sector, “bankrupt governments” looking for ever more revenues, and the possibility of a “gold mania,” said Doug Casey, chairman of Casey Research. For the highly insightful interview, read.... Doug Casey’s Predictions For The New World Market.
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| 'Currency Wars' author Jim Rickards to speak at CMRE meeting in NYC Oct. 18 Posted: 04 Sep 2012 08:01 PM PDT 10:04p ET Tuesday, September 4, 2012 Dear Friend of GATA and Gold: Geopolitical analyst, hedge fund manager, and "Currency Wars" author James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London last year, will be among the speakers at the fall meeting of the Committee for Monetary Research and Education, to be held Thursday, October 18, at the Union League Club in New York. Also speaking will be: -- The economist Alex J. Pollock of the American Enterprise Institute. -- The economist Walker Todd of the American Institute for Economic Research, also a director of CMRE. -- Myrmikan Capital founder Dan Oliver. -- CMRE Director Howard Segermark. ... Dispatch continues below ... 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 -- Richard Rahn of the Cato Institute. -- And professional trader and market commentator Victor Sperandeo. Courtesy of the American Numismatic Association, the meeting will include a display of ancient coins -- and maybe a late entry, a euro, which would pair nicely with a U.S. silver dollar. The Union League Club is a beautiful, dignified, and comfortable old place just a few blocks south of Grand Central Station, within easy walking distance, and dinner there is always excellent. Admission will be $175 for CMRE members and their spouses, $185 for others. Your secretary/treasurer plans to attend and sure would like to see some GATA supporters there. The program for the meeting is here: http://www.gata.org/files/CMREFlyer-10-18-2012.doc A reservations form is here: http://www.gata.org/files/CMREReservationForm-10-18-2012.doc Inquiries about the meeting should be directed to CMRE's tireless president, Elizabeth Currier, at CMRE@BellSouth.net. CHRIS POWELL, Secretary/Treasurer 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 Announces Wellgreen Preliminary Economic Assessment: Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory. The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57. The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows: Payback period: 3.55 years Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics." For the complete press release, please visit: http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res...
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| Spectacular Home Runs In Gold, Silver & Oil Posted: 04 Sep 2012 08:00 PM PDT from KingWorldNews:
Today Rick Rule spoke with King World News about spectacular home runs some investors have been hitting in the gold, silver & crude oil markets. Rule, who is now part of Sprott Asset Management, also predicted, "… gold and silver prices will trade higher in the six to twelve month time frame." But first, here is what Rule had to say regarding QE and the inflation/deflation debate: "A few things are on my mind right now, Eric. Recent statements by both Draghi and Bernanke, suggest to me the inevitable fact, and near-term inevitable fact, that both the European Central Bank and our own central bank officials, will be engaged in what they call some form of quantitative easing. This is what we would call counterfeiting." Rule continues @ KingWorldNews.com
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| Devaluation policy guarantees higher commodity prices, Rule tells King World News Posted: 04 Sep 2012 07:32 PM PDT 9:30p ET Tuesday, September 4, 2012 Dear Friend of GATA and Gold: Resource company broker Rick Rule today tells King World News that central banks have misconstrued the bank solvency problem as a liquidity problem, have resolved to weaken their currencies, and therefore have guaranteed higher monetary metals and commodity prices. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/4_Ric... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment: Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory. The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57. The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows: Payback period: 3.55 years Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics." For the complete press release, please visit: http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res... 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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| Posted: 04 Sep 2012 07:29 PM PDT How Long Will the Dollar Remain the World's Reserve Currency? by Ron Paul – Daily Paul Published : September 04th, 2012 We frequently hear the financial press refer to the U.S. dollar as the "world's reserve currency," implying that our dollar will always retain its value in an ever shifting world economy. But this is [...]
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| Is The Fed Responsible For The Great Financial Crisis? Posted: 04 Sep 2012 07:25 PM PDT "Recessions are a natural economic feature and their regular occurrence is healthy and indeed essential," is how Deutsche's Jim Reid introduces his investigation into post-Fed un-natural business cycles. Without them there is a serious danger of bubbles and the misallocation of resources as the further market participants detach themselves from the last downturn the more they tend to under-estimate risk. We,
Jim Reid, Deutsche Bank: The history of business cycles in the US
We, like Jim, would argue that the reason the Great Financial Crisis was so deep was due to the authorities continued refusal to let the business cycle take its natural course.
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| Kitco News' Daniela Cambone interviews GATA Chairman Bill Murphy Posted: 04 Sep 2012 07:03 PM PDT 9p ET Tuesday, September 4, 2012 Dear Friend of GATA and Gold (and Silver): Interviewed today by Daniela Cambone of Kitco News, GATA Chairman Bill Murphy discussed gold and silver price manipulation, the everlasting investigation by the U.S. Commodity Futures Trading Commission of the silver market, and likely supply shortages in silver. The interview is nine minutes long and it's posted at Kitco here: http://www.kitco.com/KitcoNewsVideo/ CHRIS POWELL, Secretary/Treasurer 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/. 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 Announces Wellgreen Preliminary Economic Assessment: Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory. The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57. The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows: Payback period: 3.55 years Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics." For the complete press release, please visit: http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res...
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| Guest Post: Bernanke: "We Can't Really Prove It, But We Did The Right Thing Anyway" Posted: 04 Sep 2012 06:40 PM PDT Submitted by Pater Tenebrarum of Acting Man blog, Bernanke and the Financial MarketsIt is amazing how big an effect a rambling, sleep-inducing speech by a chief central planner can have on financial markets in the short term. Ben Bernanke's Jackson Hole speech was of course widely expected to have such an effect, the main question was whether markets would be 'disappointed' or 'happy' with it. In connection with the gold market we mentioned a week before the speech was delivered that one should be mentally prepared for disappointment if the gold price were to rise in the days leading up to the speech. However, precious metals prices actually corrected ahead of the speech, which lowered the chance of a disappointment somewhat. Gold is an especially useful indicator with regards to expectations about monetary policy, as it tends to be the market that reacts most forcefully when a fresh inflationary impetus presents itself. Moreover, it tends to lead other markets (a pertinent recent example is 2008-2009; gold bottomed several months before equities did, evidently in expectation of additional monetary stimulus).
Given that the speech was fairly long (this does not mean it contained anything new – in fact, it didn't. We have heard all of it before), it would take a human, even a speed-reader, some time to digest the relevant passages. These days there are computer algorithms that can analyze a speech very fast, looking for key terms and key phrases that are held to be important. Apparently the algos initially tripped over Bernanke's longish list of the 'cost of non-traditional policies' and at first decided to sell. Then they advanced to the 'economic prospects' section and the conclusion of the speech and bought back. Still, it is important to realize that the content of the speech – in spite of what various Kremlinologists have concluded afterward – cannot possibly have been the 'reason' for any of the market moves observed last Friday. As noted above, absolutely nothing new was revealed.
Gold on Friday in the wake of Bernanke's Jackson Hole speech. Sell! No, buy! – click chart for better resolution.
Silver was similarly affected, but was subject to an even more pronounced price swing – click chart for better resolution.
We Can't Really Prove It, But We Did the Right Thing AnywayNonetheless, the speech contained a few interesting passages which show us both how Bernanke thinks and that people to some extent often tend to hear whatever they want to hear. Bernanke noted that although he cannot prove it, econometricians employed by the Fed have constructed a plethora of models that show that 'LSAP's (large scale asset purchases, which is to say 'QE' or more colloquially, money printing) have helped the economy. In other words, although no-one actually knows what would have happened in the absence of the inflationary policy since we can't go back in time and try it out, the 'models' tell us it was the right thing to do.
(emphasis added) Of course such models are a prime example of 'garbage in, garbage out'. The Fed's own researchers can hardly be expected to provide proof that their bosses have not the foggiest idea what they are doing. Moreover, we need neither models nor 'counterfactual observations' to know that when a buyer with unlimited firepower shows up to buy securities, their prices will rise. So it is certainly true that the Fed can successfully manipulate interest rates for a while. Duh. The question is really whether such a manipulation helps or hinders the economy. It is even believable that the 'level of output' has been higher in the short term than it would have been otherwise. This tells us absolutely nothing about the quality of said output and whether it has made us richer or poorer.
Falsifying Economic CalculationImagine Bernanke holding a similar speech in 2005 or 2006, looking back at the ultra-low interest rates the Fed imposed after the technology bubble had burst. He would have been equally correct to state that 'the level of output' was probably greater than it would have been otherwise. In fact, he did perform a number of such back-patting speeches, beginning with his infamous 'The Great Moderation' speech in 2004. What all these premature victory laps omitted was the fact that 90% of said 'output gain' was a complete waste of scarce resources which were employed in various bubble activities. This inevitably resulted in a major economic bust once the bubble burst in the wake of a number of baby step rate hikes. In fact, the last 'rescue' of the economy performed by the busybodies at the Fed almost led to a complete collapse of the financial system (that is of course not how the Fed's official history book has it; according to Bernanke it was the 'lack of regulation' in the most over-regulated sector of the economy that produced the bubble and subsequent crash. Manipulation of interest rates by the Fed can obviously only have 'good effects'). It should be clear to all but the most blinkered apologists of central planning that the long term effects of the post-2008 bust policies have yet to enter the scene. However, it appears already as though something is not quite going according to the interventionist playbook. After all we have thus far experienced what is widely held to be the 'weakest post WW2 recovery'. As to the effect of the inflationary policy on stock prices, stocks are titles to capital they are no doubt among the primary 'beneficiaries' of inflation at present. The large increase in their prices should however be seen as a warning rather than a sign of success. This may be counterintuitive, but the reaction of stock prices to the inflationary policy is one of the manifestations of the fact that relative prices in the economy have been altered. In other words, Bernanke hails the fact that he has managed to create falsified price signals as a success of his policy – but that raises the question of how falsified prices can possibly produce an economic benefit. The reality is that they invariably lead to a falsification of economic calculation. Economic calculation in turn is the main mental tool employed by entrepreneurs to estimate future conditions and arrange their production plans accordingly. We have just seen in the case of the housing bubble what a deleterious effect is has on the economy at large when economic calculation goes awry, resulting in large-scale capital misallocation.
Ben Bernanke: we can always print more…and maybe we will. (Photo by Karen Bleier / AP)
Nothing Can Go WrongThe portions of the speech that presumably led to the initial sell-off in precious metals as well as various 'risk assets' was probably the one in which Bernanke summed up the costs and benefits of 'non-traditional' monetary policies:
(emphasis added) At this point, the sell buttons were probably pressed. This mention of the 'higher bar' for 'QE' and similar policies was however immediately followed by an assertion that shows the hubris of the planners - a hubris that is curiously quite persistent in spite of the evidence that their actions have set massive boom-bust cycles in motion:
Don't worry, it is all well in hand! We'll pull just the right levers when the time comes, no problem at all. Listening to this one almost gets the impression that the crash must have been part of the plan, since obviously nothing can possibly go wrong!
The S&P 500 in 2008-2009. Nothing bad ever happens? The central planners have everything under control? – click chart for better resolution.
Economic Outlook and ConclusionThen Bernanke turned to the economic outlook, and it was likely this portion of the speech that emboldened the buyers. First he patted himself on the back for having avoided both deflation and inflation (for some reason he failed to mention that the true broad money supply has increased by over 80% since early 2008, which seems to us is a lot of inflation indeed), while obviously the economic data have improved from the nadir of the recession. Again, we don't even want to contest the idea that the interventionist policy has produced a minor sugar high for the economy. Our point is that it is nothing but an inflationary illusion. Not an iota of wealth can possibly be created by increasing the money supply. Then Bernanke noted that the recovery was not as good as has been hoped. Although he failed to supply an explanation for the phenomenon, this gloomy assessment was followed by an assertion that probably led all the Kremlinologists out there to conclude that more 'QE' is just around the corner:
(emphasis added) If the economy's sluggish performance is not due to 'longer term structural factors', then it presumably follows that the Fed has good reason to intervene further. Then Bernanke listed the 'headwinds', which in his opinion consist of the unusually sluggish housing market (err…there was a bubble in housing, remember, Ben? You and your buddies created it), various fiscal problems ranging from the fact that budgets are tight at the local and state level to the so-called 'fiscal cliff' situation, and finally the debt crisis in Europe. It seem the Fed cannot do much about any of these problems, which could be seen as a sign that Bernanke expects other policymakers to pull their levers before he is intervening again. However, his conclusion suggested otherwise.
That was of course a reference to the famous 'Helicopter Speech' of 2002, in which he gave voice to his deflation-phobia ('Deflation: Making Sure It Doesn't Happen Here'). Reminding us of this speech is probably a pretty strong hint (readers should look at the list of the Fed's non-traditional 'tools' mentioned in that speech; it is enough to make one's head spin).
No, 'we' actually don't 'know' any such thing. It's only been four years and the negative effects will only become obvious in the long term – although we suspect that the sluggishness of the recovery is already a glaring effect of the policies enacted thus far. Not according to Bernanke:
The opposite is probably the case. It seems likely that the initial downturn would have been more pronounced, as the liquidation of malinvestments wouldn't have been arrested and reversed so quickly – but in all likelihood a much stronger recovery would have followed. As we have pointed out many times, the recession of 1920-1921 was the last time both the administration and the Fed adopted a 'laissez faire' stance in the face of a major economic bust. It was over so fast that no-one remembers it today, but the downturn was actually more severe than the initial downturn of the Great Depression. The current 'never-ending slow-motion depression' is typical for an economic bust that occurs after a series of credit expansions has depleted the pool of real funding and the economy has been subjected to major interventions designed to counter the bust. It is a method to avert short term pain to some extent, but it tends to condemn the economy to an endless malaise.
Another admonishment to the rest of the policy-making universe to do something. Although it is not specified what that something might be, the previously mentioned 'fiscal cliff' was a hint that Bernanke thinks more deficit spending is called for. In the end though, Bernanke gave us the boilerplate assurance that the 'Fed is standing by to do more', i.e., it will try to inflate us back to prosperity:
Bernanke is right to be concerned about the suffering and waste entailed by the weak labor market, but he has only himself and his colleagues to blame. After all, their policies created the mess in the first place. It is bizarre that he concludes from this that they should do more of the same, but there it is.
The SPX on Thursday and Friday (5 minute chart) – quite a bit of short term volatility surrounded Bernanke's speech, but stocks ended the day in limbo – higher, but not by a lot – click chart for better resolution.
Jon Hilsenrath Chimes InTo briefly come back to what we wrote at the very beginning: nothing of what Bernanke said was actually new. It sure didn't sound to us like he actually promised 'imminent QE'. Rather, he concluded his speech with the same sentence that has been part of every FOMC statement since 2008: "The Federal Reserve will provide additional policy accommodation as needed." Here is the sentence that concluded the August FOMC statement:
This is the sentence that concluded the June FOMC statement:
You get the drift – it goes on like that, ad nauseam, if one tracks back through the statements to the beginning of the crisis. The only differences are minor points of inflection, but the substance is always the same. In this sense we say that people simply heard what they wanted to hear. All Bernanke did was to confirm the preexisting 'easing bias', but it is not at all clear to us from his words that the current situation is sufficiently dire to surmount the 'higher bar' that according to Bernanke stands in the way of the implementation of 'non-traditional' policies. The stock market is close to a multi-year high, commodity prices have firmed and the US economy is officially still in expansion mode, even if the expansion is widely acknowledged to be weak. However, there is Jon Hilsenrath, the Fed's favored media mouthpiece, who chimed in after the speech with the following:
(emphasis added) This reminds us that a previous installment of Hilsenblather published just four days before the Jackson Hole speech weighed the 'costs and benefits of non-traditional monetary policy' in much the same way Bernanke did in his speech – and came to similar conclusions. Much of what Hilsenrath writes about the pros and cons as the various monetary bureaucrats see them can be deduced from their speeches and papers, but it is clear that he is the 'go to' man when they want to leak something. So when he interprets the speech as promising more money printing to come down the pike soon, one should probably take heed. There is a considerable risk associated with going 'whole hog' when financial markets are already near their recent highs, as the concrete decision may still disappoint by dint of being seen as 'too timid'. In short, there could be a 'sell the news' event in store once the actual policy announcement comes. What would they then do for an encore? As to the steps that might be adopted, James Bullard recently argued that the Fed may follow the example of Denmark's central bank and impose a negative interest rate penalty on excess reserves. This would be politically uncontroversial, but there could be a plethora of unintended consequences | ||||||
| Rick Rule - Spectacular Home Runs In Gold, Silver & Oil Posted: 04 Sep 2012 06:17 PM PDT  Today Rick Rule spoke with King World News about spectacular home runs some investors have been hitting in the gold, silver & crude oil markets. Rule, who is now part of Sprott Asset Management, also predicted, "... gold and silver prices will trade higher in the six to twelve month time frame." But first, here is what Rule had to say regarding QE and the inflation/deflation debate: "A few things are on my mind right now, Eric. Recent statements by both Draghi and Bernanke, suggest to me the inevitable fact, and near-term inevitable fact, that both the European Central Bank and our own central bank officials, will be engaged in what they call some form of quantitative easing. This is what we would call counterfeiting."
This posting includes an audio/video/photo media file: Download Now | ||||||
| The Zero Hedge Daily Round Up #119 - 04/09/2012 Posted: 04 Sep 2012 05:53 PM PDT Enjoy your daily dose of sanity. I would make a feeble attmept at enjoyment, but this straitjacket is awfully uncomfortable.
Alternatively, you can download the show as a podcast on iTunes or any RSS capable device. RSS Feed: http://thefinancialreality.podomatic.com/rss2.xml Julius Reade
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| Posted: 04 Sep 2012 05:20 PM PDT Jackson Hole & GOLD...
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| Will We Collapse by August 7th 2013? Posted: 04 Sep 2012 05:20 PM PDT Will We Collapse by August 7th 2013? ...
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| Near-Term Targets for Gold, Silver and Mining Shares Posted: 04 Sep 2012 04:27 PM PDT It’s amazing. Suddenly, everyone is bullish again. Two months ago you couldn’t give away mining shares or Silver. No one wanted to buy. After back to back weekly gains (for essentially the first time since January) the gold bugs are back and proud. Bullish calls are coming out of the woodwork. This is good and all but as analysts our job is to stay ahead of the market, rather than react to or follow it, as so many professionals do. That being said, today we give you a quick synopsis of where things stand and the potential risks coming into play. Below we chart Gold and Silver in weekly form. Gold has a bit of resistance at $1700 but strong resistance at $1800. Silver has initial resistance at $32.50 followed by stronger resistance at $35.00 and $37.50. The numbers reflect public opinion readings (source: sentimentrader.com). While we believe the rebound has more room to run we have to note the sudden large increase in bullish sentiment. As you can see, publ...
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| The Silver and Gold Price Corrections Have Ended — The Next Rally Has Begun — Buy More Posted: 04 Sep 2012 04:16 PM PDT Gold Price Close Today : 1692.90 Change from August 31st : 8.30 or 0.49% Silver Price Close Today : 32.348 Change from August 31st : 0.978 or 3.12% Gold Silver Ratio Today : 52.334 Change from August 31st : -1.367 or -2.55% Silver Gold Ratio Today : 0.01911 Change from August 31st : 0.000486 or 2.61% Platinum Price Close Today : 1566.50 Change from August 31st : 30.20 or 1.97% Palladium Price Close Today : 640.25 Change from August 31st : 12.30 or 1.96% S&P 500 : 404.94 Change from August 31st : -1.64 or -0.40% Dow In GOLD$ : $159.18 Change from August 31st : $ (1.44) or -0.90% Dow in GOLD oz : 7.700 Change from August 31st : -0.070 or -0.90% Dow in SILVER oz : 402.99 Change : -14.31 or -3.43% Dow Industrial : 13,035.94 Change from August 31st : -54.90 or -0.42% US Dollar Index : 81.34 Change from August 31st : 0.125 or 0.15% The GOLD PRICE will probably slice through $1,700 tomorrow, certainly this week. This run won't stop before $1,740 or $1,750. Nothing rises forever. The silver and GOLD PRICE have a ways to run yet, but a little correction will come -- it always does. GOLD PRICE jumped $8.30 to $1,692.90. Considering that the aftermarket is trading at $1,697.20, that close looks a bit posed. Low came early (9:30) at $1,688.50, then rocketed off that clean to the high, $1,698.35. The SILVER PRICE gained 97.8 cents to 3234.8c. Friday it gained 100.3c. This is fun, but not normal. At 3234.8, silver needs to stretch a bare 18.2 cents to reach its 300 day moving average. So what? Why, that 300 DMA acts like the 200 DMA does for other markets. Once silver climbs over that 300 DMA, there's no question the next leg up has begun. Put on your helmet, buckle on your seat belt! The GOLD/SILVER RATIO dropped 1.368 to 52.333 today. That's enormous. Silver ought to climb another week or more, and touch 3445 cents before it stops. What big lesson ought we draw from all this? The silver and gold corrections have ended, the next rally has begun, buy more. By the rumor, sell the news. The stock market gained on news that Ben the Bully Bandit would water down the dollar even more, and fell again today. The blasts of blarney no longer scare many birds off the trees. Thus Ben must pull out the Inflation Gun, his only other weapon. Whoops -- that's already failed with QE 1 and QE 2. "I know what you're thinking, Ben. You're thinking, `Did I fire six shots or only five?' Tell you the truth, Ben, I forgot myself in all this excitement." Dow fell 54.9 (0.42%) to 13,035.94. S&P500 lost 0.12% (1.64) to 1,404.94. Stocks are verging on falling off the cliff. US dollar index gained 12.5 basis points (0.16%) to 81.34, a meaningless day's activity. 81.40 is the top of the range, 81.00 the bottom. Dollar index has its eye set on 80.60, the 200 day moving average, maybe even lower. Euro tapped on $1.2600 resistance Friday, and fell back today 0.14% to $1.2562. Euro will rise to $1.3000 if it can clear $1.2700. Yen is dancing with its downtrend line. Down today a bare 0.5% to 127.54c (Y78.41). My book developer tells me that publishers never announce the specific date a book will be published, only the month. So "forthcoming in October" (the 15th, I think) my book AT HOME IN DOGWOOD MUDHOLE (Volume I) will be published. Y'all can save yourselves five bucks shipping and get an autographed copy if you order before 15 October 2012. See http://store.the-moneychanger.com/products/at-home-in-dogwood-mudhole-vol1 That's me behind the horses on the mower, and that picture was taken about 200 yards from where I'm sitting right now. Joel Salatin says it is "at once hilarious, humbling, and holy." The Bodacious Hoedown last Saturday was a great success, biggest we ever had: 225 people. They had fun, they ate a dangerous amount of food, and they danced barefoot in the grass. From 7 September through 16 September I will be away for our family vacation. Sorry, I won't publish a daily commentary during that time, but I will return on 17 September, God willing. 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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| Gold Seeker Closing Report: Gold and Silver Gain With Dollar Posted: 04 Sep 2012 03:05 PM PDT Gold fell a few dollars from last Friday's close to $1688.31 by a little after 9:30AM EST before it jumped back to $1698.76 in the next half hour of trade and then drifted back lower midday, but it then rallied back higher in late trade and ended with a gain of 0.21%. Silver climbed to $32.27 in Asia before it slipped to $31.90 in London, but it then climbed to as high as $32.40 in New York and ended with a gain of 1.84%.
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| Posted: 04 Sep 2012 02:27 PM PDT Synopsis: Outrageous prices today will be a bargain tomorrow in the stressed-out oil market. By Marin Katusa, Chief Energy Investment Strategist Between October 1973 and March 1974, the price of oil shot sky-high. OPEC embargoed its output, and prices spiked from $3 a barrel to $12 – a gain of 300% in six months. For the global oil machine, the OPEC oil crisis sparked a complete overhaul. Oil-needy nations in the West rebelled against their reliance on OPEC, and within ten years non-OPEC production surged by 50%. Rising output in new areas even produced what became dubbed the 1980s Oil Glut. But did prices go back down? Yes – and no. Yes, they went down – but not all the way. The 1973 crisis was the beginning of oil's rising baseline. In the 40 years since, prices have spiked and fallen numerous times, but oil has never returned to its pre-1973 levels (in nominal or real terms), even during the 1980s production glut. Instead, oil's baseline price has crept continually upward.
(Click on image to enlarge) It is not a corporate conspiracy nor a government plot. No, oil has become increasingly valuable over the last 40 years for two simple reasons. First, the world runs on oil. Second, with every passing year, with every million barrels pulled from the ground, oil is more difficult to produce. We are not running out of oil. We are running out of oil reserves that are technically feasible, politically accessible, and environmentally acceptable. As a result, the world's insatiable thirst for oil is pushing the oil sector to the limits of its capabilities. Global production is only a few million barrels above consumption... a tight balance that is easily disrupted. Disruptions, real and threatened, have kept the spot price of Brent crude above $100 a barrel almost consistently since early 2011. Today we face several real supply disruptions, including sanctioned Iranian output and low production from Libya and the Sudans, as well as one looming threat in the form of Israeli-Iranian aggression. But Iran itself is not the problem. The Libyan revolution alone did not push prices to $125 per barrel. These situations just added fuel to an existing, smoldering, smoking fire: the global oil crunch. A child doesn't break out in hives after eating peanuts unless he has a peanut allergy. A guitar string doesn't reverberate after being plucked unless it is under high tension. And the price of oil doesn't spike after one threat of disruption unless the entire oil-supply chain is highly strained – and strained it is. Demand keeps rising. Production is struggling to keep up. The cost to produce a barrel keeps climbing, and the risks associated with each barrel keep increasing. The system is so strained that every bump in the road has the potential to cause oil-market mayhem. And with every bout of mayhem, oil finds a new, higher bottom. Bigger and Bigger Baseline BumpsFour years ago the International Energy Agency warned of the need to invest $20 trillion in energy projects over the next 25 years to supply the industrial revolutions in Asia and prevent an energy crunch. That warning stole headlines in 2008, but then came the crash. With global markets flailing, economies in recession, and energy demands declining in many part of the world, we shifted our collective attention to other matters. When the Arab Spring pushed oil prices up 40% in a few months, we considered it an isolated event. When Iran started threatening to blockade the all-important Strait of Hormuz, we let ourselves believe that oil prices would come back down once the threat subsided. And they will – but not all the way. We now live in a world where oil trades above $100 a barrel even in recession. The baseline has risen, and the forces working to push it even higher get stronger every day. In 1973 the price of oil shot from $3 a barrel to $12. Prices stayed in that range until the Iranian Revolution in 1979, and the start of the Iran-Iraq War in 1980 pushed them higher, to a nominal peak of $38 a barrel. By 1986 pricing deregulation and surging production finally pushed oil down again. It bottomed at $11 a barrel. While a nice change from $38 a barrel, that bottom was still 260% above the pre-crisis low of $3. And while it would be nice to think that a 260% increase in the baseline price of oil was an isolated event, that would be wrong. In fact, we are currently in the midst of an even bigger baseline bump. From the late 1980s until 2004, the price of oil ranged between $15 and $30 a barrel (aside from one short spike at the outset of Operation Desert Storm). Today, I would say oil's baseline price is $70 a barrel – less than that and important production like that from the Canadian oil sands, America's shale basins, and the reams of deepwater wells around the world become uneconomic. If they go offline, falling output will boost prices up again. In addition, most OPEC nations need an oil price of at least $80 a barrel to meet their social spending requirements. That means oil's baseline jumped from $15 a barrel to $70 a barrel in the last ten years. That's an increase of $55 a barrel or 367%. That 260% baseline jump from 1973 to 1986 doesn't look so bad anymore, does it? A bigger baseline bump makes sense, because the strains on the system are stronger now than they were then. Demand is higher, production is riskier and more costly, and competition for increasingly limited resources is rising. That begs the question: If increases in the baseline price of oil get bigger with every major spike, what does that say for the future of oil? A Thought ExperimentToday, just as in 1973, the world's top oil producers are in prime position. Armed with the most valuable commodity on the planet, they know that they can use their oil weapon to gain not just wealth but power. It would only take one leader from one such country to make a self-interested move, and we would face another major baseline bump. There is a strong candidate in the wings for that very job, in the form of Vladimir Putin. Using resource wealth to benefit Mother Russia is Putin's bread and butter – he even based most of his graduate school work on the topic, including this paper. I have written several articles in recent years about Putin's push to gain global power through strategic resource-based relationships. For one, I am certain that Putin is moving to corner the global uranium market and have positioned my subscribers to benefit from this shifting uranium landscape. Putin has also spent more than a decade building new gas pipelines to ensure that Europe remains reliant on Russian natural gas for years to come – the man loves being in charge of other people's energy resources. Oil is no exception. People very often forget that Russia – not Saudi Arabia – is the world's top oil exporter. And with fields in Russia's far north expected to produce billions of barrels in the years to come, Vlad's grip on the global oil machine is only going to tighten. So imagine this: in a marriage of convenience, Putin inks a series of lucrative supply deals with China. The Chinese Communist Party has the money, Putin has the oil, and the pipelines are already being built – the scenario is not so far-fetched. Suddenly, the global oil-supply cushion disappears. With other major oil exporters facing increasing domestic demand and/or sliding production volumes, the disappearance of excess Russian supply forces oil-needy nations to look to higher-cost, higher-risk countries to slake their crude thirsts. The result: Oil prices spike once again. When the immediate spike subsides and prices decline again, the world finds it has taken yet another step up the oil-baseline staircase. What was expensive yesterday becomes oil's bottom tomorrow.
(Click on image to enlarge) History says that another baseline jump of 300% or 400% is absolutely possible – even likely. A new oil-price bottom of $200 to $300 per barrel would present a nasty hurdle for the world's economies… but if you can't beat them, join them. Oil companies shouldn't be the only ones that benefit from oil's rising baseline. With the Casey Research energy team beside you, you can position your portfolio and join Big Oil on the ride. Marin will be revealing some of his favorite energy plays at the Navigating the Politicized Economy Summit in Carlsbad, California, September 7-9. Even if you're not attending, you can still get all of his picks – as well as many more from a blue-ribbon panel of some of the most successful resource investors in the world. You'll get priceless investment advice with the Summit Audio Collection – over 20 hours of expert insights into today's overly politicized economy and actionable investment advice. This year's faculty features investing legends Doug Casey and Rick Rule... former US Comptroller General David Walker and Dr. Thomas P.M. Barnett, who has worked in US national security circles since the end of the Cold War... acclaimed economists John Mauldin and G. Edward Griffin, author of The Creature from Jekyll Island... and 22 other financial luminaries. As soon as the Summit is over, our team of technicians will work overtime to produce the audio collection and have them available as CDs and MP3 files, so you can take action on their timely recommendations right away. Order your Summit Audio Collection now and you'll save $100.
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| Posted: 04 Sep 2012 02:18 PM PDT September 4, 2012 [LIST] [*]QE to infinity: The Fed's latest twist on the classic definition of insanity [*]The Fed's "all in" bet... and why Dan Amoss believes it will lead -- eventually -- to a new gold standard [*]James Grant gets gold standard equal time in The Washington Post... while a Reserve member pleads with the columnist who can't get over Ron Paul's distrust of politicians and central bankers [*]How Mao indirectly inspired U.S. dietary guidelines... another failed "I dare you to print this" attempt... a massive government fiasco, er, success... and more! [/LIST] "There's an old saying that defines insanity as doing the same thing over and over again and expecting different results," writes our macro strategist Dan Amoss. "The Federal Reserve wants to test that theory." Remarkably, Dan wrote that last week... before a story yesterday on Bloomberg removed all doubt. "Four Fed presidents," the article reported, "ha...
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| Gold Daily and Silver Weekly Charts Posted: 04 Sep 2012 02:05 PM PDT | ||||||
| Posted: 04 Sep 2012 02:00 PM PDT We know that the decelerating economic backdrop (with inflation measures in check) is supportive of a Fed going unconventionally dovish in unleashing QE style policy if it so chooses. We also know that the political backdrop is not supportive, with Republicans sounding off about a gold standard and a soon to be former Fed chief.
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| Posted: 04 Sep 2012 01:50 PM PDT UPDATE: Looks like I'll be giving some of these away at Bitcoin2012 London Sept. 15th Social Security may be ordering hollow point bullets…but we've got our own Silver Keisers!
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Most people just assume that since things have always been a certain way that they will always be that way in the future. Most people just have blind faith that the people running our government and our financial system know exactly what they are doing and that they are doing their best to take care of us. In fact, once upon a time I was fully convinced of that. When I was a kid I quickly realized that my elementary school teachers really didn't have the answers, but I had total faith that those running society at the highest levels were "experts" that were looking out for our best interests. As time went on I kept progressing in my education, and by the time I was finished with law school I came to understand that none of our "experts" really know what they are doing, and they are definitely not looking out for our best interests. The blind are leading the blind and we all need to finally admit that the emperor is not wearing any clothes. Unfortunately, most Americans will repeat the mantra of "if that was true I would have heard about it on the news" until it is way too late. Most people are waiting for the "authorities" to tell them what to do instead of thinking for themselves. Sadly, time is rapidly running out and a lot of people are going to end up getting totally blindsided by what is coming.
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