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• Gold may get support on US debt ceiling, Middle East issue: ETFS
• Monex Precious Metals Review: Gold support $1308, Silver resistance $22.19
• The Losing Battle to Fix Gold at $35, Part II
• Is this the best way to invest in gold today?
• Silver loses its Chinese premium as industrial demand slows
• Royal Gold Presents at Bank of America Merrill Lynch Canada Mining Conference (Transcript)
• Gold Fever Catches A Cold
• Bill Black: Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis
• Tuesday charts for Gold and silver before Fomc meeting
• Gold Daily and Silver Weekly Charts - JPM To Pay About $800 Million Fine for London Whale
• A beginners guide to investing in Gold
• JUNIOR FOCUS: Roxgold outlines high-grade gold mine in Burkina Faso
• But How Near Is The Fall?
• Historic Buying Opportunity Coming in Gold Stocks
• Gold Cannot Shrug off Bearish Sentiment
• India's would-be PM 'beacon of hope for the gold industry'
• Summers' Fed exit fails to spur precious metals
• In KWN interview, Turk comments on Summers withdrawal and raids on gold
• Today’s Volatility In Metals & Markets Could Amplify With US Fed Meeting
• Bring Our Gold Campaign Now in Finland, Just 2 Weeks After Poland
• GEAB N°77 ist angekommen! Finanzen, Wirtschaft, Politik und die globale Lage zum Jahresende 2013 : Drei Funken und ein Pulverfass
• Poland Latest To Seek Repatriation of Its Gold
• Five valuable lessons from a true resource "titan"
• Controversial charts say gold could be headed to new lows
• They Act Like It Matters
• Gold and silver price manipulation ends with the death of fiat
• Gold falls on prospects of US Fed tapering
• The CFTC and the sad joke of "Regulation"
• Confessions of a former gold bear
• Jim Rickards on a Return to a Gold Standard: “The Dollar is Definitely Collapsing”
• Bombshell
• Confessions of a former gold bear
• Gold sees damaged weekly charts
• Summers' Fed exit fails to spur precious metals as fundamentals return
• War Is Coming: 10 Reasons Why A Diplomatic Solution To The Syria Crisis Is Extremely Unlikely
• Does the moon control gold and silver prices?
• Chart of the Day: Where Has All the Gold Gone?
• Gold up in Asia after Summers exits Fed race
• JPMorgan in the Manipulation Of The Gold And Silver
• Gold trims gains but still up after Summers news
• Chart of the Day: Where Has All the Gold Gone?
• Out of This World
• What the Orgy of “Lehman Five Years On” Stories Missed
• 90% Silver Sale! Any QTY Only $1.49 Over Spot!
• Gold and Silver Price Manipulation Ends With the Death of Fiat
• Choice For Fed Chairman
• Gold bulls cut wagers as Goldman sees more losses
• Could You Imagine This 25 Years Ago?
• Indian temples to Indian central bank on gold inventory information request: “POKE-IT”
• Poll: Americans Oppose Raising the Debt Ceiling Even If U.S. Defaults and Say Government Wastes 60 Cents of Every Tax Dollar

Gold may get support on US debt ceiling, Middle East issue: ETFS Posted: 17 Sep 2013 03:38 AM PDT Among the precious metals, palladium has the highest industrial demand exposure at nearly 80%, and thus stands in a particularly strong position to benefit as the global economy improves.

Monex Precious Metals Review: Gold support $1308, Silver resistance $22.19 Posted: 17 Sep 2013 03:13 AM PDT Monex spot silver prices opened the week at $23.58 . . . traded as high as $23.81 on Monday and as low as $21.65 on Friday . . . and the Monex AM settlement price on Friday was $21.74, down $1.84 for the week.

The Losing Battle to Fix Gold at $35, Part II Posted: 16 Sep 2013 10:45 PM PDT John Paul Koning

Is this the best way to invest in gold today? Posted: 16 Sep 2013 10:17 PM PDT Bloomberg profiles an ex-investment banker turned gold broker. You might imagine owning gold as a way to avoid dealing with such people but they have a habit of turning their hands to handle wherever the money happens to flow. In 2008, Savneet Singh was to start his dream job at a hedge fund, but the Lehman Brothers collapse and the failure of the financial system caused him to rethink his path. Bloomberg takes a look at his new ‘golden’ opportunity….

Silver loses its Chinese premium as industrial demand slows Posted: 16 Sep 2013 10:12 PM PDT The slowdown in the huge Chinese economy can be measured in the falling price of commodities like copper and silver. This is bad news for silver speculators but it gives long-term investors a chance to buy what is also a precious metal at bargain prices. In today’s ‘Global Outlook,’ Bloomberg’s Mia Saini takes a look at what’s behind the drop in China’s price premium compared to London’s on Bloomberg Television’s ‘On The Move Asia’…

Royal Gold Presents at Bank of America Merrill Lynch Canada Mining Conference (Transcript) Posted: 16 Sep 2013 10:11 PM PDT Royal Gold, Inc. (RGLD) Bank of America Merrill Lynch Canada Mining Conference September 12, 2013 12:00 PM ET Executives Sandip Rana - CFO, Franco-Nevada Corporation Bill Heissenbuttel - VP of Corporate Development, Royal Gold Gary Brown - SVP and CFO, Silver Wheaton Analysts Presentation Unidentified Analyst [Call Started Abruptly] … something new this year for our conference and something I should have done years ago and basically I called the buffet lunch panel presentation with the three major royalty streaming companies. I should note that a certain company called Sandstorm wanted to be part of this but it's just you three. And very pleased all here, all the speakers now then we introduce when they come up but very pleased to have from Franco-Nevada Corporation, Sandip Rana, the CFO standing right there and from Royal Gold, Bill Heissenbuttel, Vice President of Corporate Development and from Silver Wheaton, Gary Brown, Senior

Gold Fever Catches A Cold Posted: 16 Sep 2013 09:55 PM PDT "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." -Warren Buffett GLD Total Return Price data by YCharts On Wednesday, September 18th the Federal Reserve will have a policy meeting discussing the possibility of tapering treasury purchases from $45 billion to $35 billion per month. Both Wall Street and Main Street seem overly concerned on the timing of the taper; however, whether it is September or October, in the end, this is insignificant. The bottom line is that the taper will occur, it is a question of when, not if. We also think in the first half of 2014, the Fed will totally exit the quantitative easing program. We believe that, with rising

Bill Black: Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis Posted: 16 Sep 2013 09:11 PM PDT Yves here. Apparently out of reluctance to overburden readers with detail, Black skips over the big reason that Basel II was problematic. It relied on risk weighting of assets. For example, sovereign debt had a risk weight of zero, meaning banks weren’t required to hold equity against it. So guess what Eurobanks, who were subject to Basel II rules shortly before the crisis, loaded up on? As former central banker London Banker put it: I was looking at the preferred asset classes under the Basel Accords…and realised that every single asset class that is given less than a 100 percent credit risk weighting is now tainted by widespread default, scandals or bailouts. The credit risk weightings mean that instead of reserving the standard 8 percent of capital in respect of a debt, the bank can cut that by the weighting applied to the asset class. Effectively, the reduction in credit risk weighting operates as a powerful subsidy to the borrowers and equally powerful incentive to over-leveraging the lenders. Steve Waldman wrote a classic post on why bank equity isn’t the end all and be all of bank safety that Summers and Geithner would have you believe. From Capital can’t be measured: The bottom line is simple. The capital positions reported by "large complex financial institutions" are so difficult to compute that the confidence interval surrounding those estimates is greater than 100% even for a bank "conservatively" levered at 11× tier one capital. Errors in reported capital are almost guaranteed to be overstatements. Complex, highly leveraged financial firms are different from other kinds of firm in that optimistically shading asset values enhances long-term firm value… Financial firms raise and generate liquidity routinely. Many of their assets are suitable as collateral in repo markets. Large commercial banks borrow freely in the Federal Funds market and satisfy liquidity demands in part simply by issuing deposits that are not immediately withdrawn. For large financial firms, access to liquidity is rarely contingent upon a detailed audit by a potential liquidity provider. Instead, access to liquidity, and the ability to continue as an operating firm, is contingent upon the "confidence" of peer firms and of regulators. Further, the earnings of a financial firm derive from the spread between its funding cost and asset yields. Funding costs are a function of market confidence, so the value of a financial firm's real future earnings increases with optimistic valuation. For a long-term shareholder of a large financial, optimistically shading the firm's position increases both the earnings of the firm and the "option value" of the firm in difficult times. It would be a massive failure of corporate governance if Jamie Dimon or Lloyd Blankfein did not fib a little to make their firms' books seem a bit better than perhaps they are, within legal and regulatory tolerances. So, for large complex financials, capital cannot be measured precisely enough to distinguish conservatively solvent from insolvent banks, and capital positions are always optimistically padded. Given these facts, and I think they are facts, even "hard" capital and leverage restraints are unlikely to prevent misbehavior. Can anything be done about this? Are we doomed to some post-modern quantum mechanical nightmare wherein "Schrödinger's Banks" are simultaneously alive and dead until some politically-shaped measurement by a regulator forces a collapse of the superposition of states into hunky-doriness? Yes, we are doomed, unless and until we simplify the structure of the banks. When I say stuff like "confidence intervals surrounding measures of bank capital are greater than 100%", what does that even mean? Capital does not exist in the world. It is not accessible to the senses. When we claim a bank or any other firm has so much "capital" we are modeling its assets and liabilities and contingent positions and coming up with a number. Unfortunately, there is not one uniquely "true" model of bank capital. Even hewing to GAAP and all regulatory requirements, thousands of estimates and arbitrary choices must be made to compute the capital position of a modern bank. There is a broad, multidimensional "space" of defensible models by which capital might be computed. When we "measure" capital, we select a model and then compute. If we were to randomly select among potential models (even weighted by regulatory acceptability, so that a compliant model is much more likely than an iffy one), we would generate a probability distribution of capital values. That distribution would be very broad, so that for large, complex banks negative values would be moderately probable, as would the highly positive values that actually get reported….Given the heterogeneity of real-world arrangements, no "one-size-fits-all" model can be legislated or regulated to ensure a consistent capital measure. We cannot have both free-form, "innovative" banks and meaningful measures of regulatory capital. If we want to base a regulatory scheme on formal capital measures, we'll need to circumscribe the structure and composition of banks so that they can only carry positions and relationships for which we have standard regulatory models. "Banks' internal risk models" or "internal valuations of Level 3 assets" don't cut it. They are gateways to regulatory postmodernism. By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City. Cross posed from Benzinga The last ditch efforts to save Larry Summers' prospective nomination to run the Fed and the comments about his withdrawing from consideration have prompted further discussions of financial regulation. The thrust of the comments is that Summers' big regulatory idea was that capital requirements are the key and other forms of rules are worthless because they are easy to evade. Commercial bank capital requirements during the heights of the bubbles were absurdly low and the capital requirements for investment banks, Fannie and Freddie, sellers of CDS protection, monoline insurers, and mortgage banks were farcical. The capital requirements for U.S. primary dealers and the largest commercial banks were reduced sharply during the expansion phase of the bubble. The reduction in the capital requirements for Europe's largest commercial banks was far more severe than in the United States, so there is a "natural experiment" that can be used to research the effect of reducing capital requirements. The Basel process was originally designed to prevent a regulatory race to the bottom by the "developed" economies through debasing bank capital requirements. The Basel process was supposed to create a more uniform minimum bank capital requirement. Basel II, however, embraced reducing capital requirements and ended up producing a much lower bank capital requirement in Europe than the U.S. Basel II's evisceration of capital requirements proved disastrous. One of the less understood aspects of the mortgage fraud crisis is how the FDIC's successful rearguard action saved us from the Fed's economists' efforts to push the full reduction in capital requirements of Basel II and delayed U.S. implementation of Basel II by two years. Europe had no equivalent to the FDIC fighting the madness of Basel II's sharp reductions in bank capital requirements so it adopted the full reduction and it adopted that reduction two years before the U.S. implemented its considerably less radical reduction in capital requirements. The perversion of the Basel process in Basel II into a device for leading, rather than preventing, a regulatory race to the bottom began in 1998 under the Clinton administration. The perversion was led by the lobbying of the largest banks and the Fed. Basel II was drafted in a manner that was a radical departure from Basel I. The difference was that the industry was invited "inside the tent" by the regulators to participate actively in the rule making process. This invitation went well beyond the input U.S. firms have in "notice and comment" rulemaking. The largest banks were constantly involved – for the better part of a decade – making numerous ex parte presentations to individual government employees and committees. The biggest bank strategy had several components that all favoring reduced capital requirements for the largest banks. The U.S. government's embrace of the regulatory race to the bottom and of a process dominated by the largest banks was consistent with the Clinton administration's embrace of both of those concepts. President Clinton and Vice President Gore's "Reinventing Government" crusade had seven key precepts for financial regulation that I have explained in detail in prior articles. 1. "Don't waste one second worrying about fraud…." (Bob Stone's explanation of the advice he gave Gore that led Gore to put him in charge of the "Reinvention" crusade) 2. The industry members are the regulators' "customer" – the public and Nation are not 3. The U.S. must "win" the international competition in regulatory laxity (Summers' rationale for favoring the repeal of Glass-Steagall and the creation of the regulatory black hole for financial derivatives via the Commodities Futures Modernization Act of 2000) 4. Financial regulators were direct to "partner" with the banks 5. Financial regulators were directed to cease "imposing" rules and instead to "negotiate" them with their industry "partners" 6. Clinton told the financial regulators at his first major meeting with them that he had received more criticism of their actions while he was campaigning than any other branch of government 7. The Reinventers were particularly disdainful of enforcement actions and prosecutions against fraudulent firms and firms that polluted or otherwise endangered worker or public safety for this violated the central mission of treating the firms as customers and partners Bob Rubin and Larry Summers were enthusiastic supporters of the Reinventing Government crusade. I have not been able to find any record of them opposing the effort under the Clinton administration to use Basel II as a means to cause a dramatic reduction in capital requirements for the largest banks. After the Bush administration began, another Rubinite, Timothy Geithner, was made head of the NY Fed on October 15, 2003. The NY Fed's economists played a key role in the Fed's support for the weakest possible Basel II capital requirements under Geithner and his predecessor. The Fed's economists ignored and denigrated their supervisors' objections to the severe reduction in capital requirements. Report of the Financial Crisis Inquiry Commission (FCIC) 2011: 171 (see also the Spillenkothen memorandum to FCIC). The proposed Basel II reduction in capital made a mockery of U.S. law requiring the regulators to take "prompt corrective action" against banks with inadequate capital. [T]he results of the Fourth Quantitative Impact Survey (QIS4), conducted during the fall and winter of 2004-2005, exacerbated these concerns. This survey of 26 of the largest banks in the U.S. (including the banks that would be required to adopt the AIRB) showed substantial reductions in required capital on average. Indeed, if these banks had chosen to reduce their capital to these AIRB minimums, almost all of them would have had leverage ratios that would be categorized as undercapitalized and triggering prompt corrective action sanctions. To put this all together, we have a real world test of administration economists' views and integrity. The Basel II rule adopted by the U.S. was very poor, but because of the FDIC's courage and skill it was far less destructive than the version of Basel II that the Fed's economists championed and that Europe adopted. The Fed/European version was indefensible. It was contrary to the express will of Congress, all financial regulatory experience, and sound economic theory. By looking at their contemporaneous positions on Basel II we can judge officials' actual views on capital requirements. For example, Geithner is famous for claiming (now) that the key to regulation is "capital, capital, capital" – by which he means higher capital requirements. Geithner, however, was one of those who led the crusade to lower capital requirements for the largest banks. Summers' supporters claim that he was "long" a supporter of higher capital requirements for banks. Jeremy Bulow wrote that Summers was the best person in the world to replace Ben Bernanke as head of the Fed. Bulow claimed that Summers was a great regulator. Because Summers has opposed some poorly designed rules, he is criticized as being against regulation. Actually, he's been in favor of regulating wisely. For example, he … has long supported requirements to boost bank capital. "[H]e's in favor of regulating wisely" and he opposes bad rules – how unique. There's no content to this syrup. The last sentence can be tested. The Clinton Treasury could have killed Basel II's radical reduction in capital requirements for the largest banks. Rubin and Summers (and Clinton and Gore) also could have stopped the biggest banks' constant ex parte ability to structure the rule to radically reduce their capital requirements. We know that Treasury did not kill either the rule or the disgraceful manner in which the largest banks dominated the rule changes. But perhaps Summers did actually write to oppose the rule and the ex parte procedural abuses and was overruled by Rubin or Clinton. If he did, then he deserves considerable praise. The question for Bulow is how long does "long" mean in his second sentence quoted above. Does Bulow know that Summers believed in 1998 that the largest banks needed higher capital requirements? If Summers did believe that in 1998 what did he do to try to stop the disaster that bore bitter fruit as Basel II. Did Rubin and Summers implore Geithner to stop pushing to weaken bank capital requirements in the early-to-mid 2000s? Similarly, after Summers withdrew his name from consideration, Edward Luce wrote to defend Summers' regulatory vigor, arguing that Summers, by 2009, supported "much stricter" bank capital requirements. Luce explains Summers' theory of regulation. Mr Summers' real bias is his tendency to dismiss smaller regulations as self-defeating. He prefers big and simple to complex and gameable. The problem I have is with Summers' assumption that "capital" is not "gameable." Capital is simply an accounting residual: Assets – Liabilities = Capital. If a CEO leading an accounting control fraud can "game" assets (by overstating them) and/or understate liabilities, then the CEO will "game" (overstate) capital (and income) – massively. Banks, and corporations like Enron, that are massively insolvent and unprofitable can through accounting fraud report for many years that they have record profits and "excess" capital. The famous 1993 article by George Akerlof and Paul Romer – "Looting: The Economic Underworld of Bankruptcy for Profit" confirmed the accuracy of what competent regulators and white-collar criminologists had been saying for years. Accounting fraud was a "sure thing" that mathematically guaranteed the ability to report record (albeit fictional) profits for years, which made the controlling officers immediately wealthy through modern executive compensation. The firm might fail, but the controlling officers could walk away wealthy. Summers and many of his supporters still don't understand the most basic aspects of accounting control fraud. Accounting control fraud epidemics have driven our three modern financial crises (the S&L debacle, the Enron-era frauds, and the ongoing mortgage fraud crisis). We cannot afford the continuing unwillingness of neoclassical economists to read the work of a Nobel laureate in economics (Akerlof 2001) because of their primitive tribal taboo and ideological dogmas against taking elite fraud seriously. There would have been a fourth modern crisis had not the S&L regulators driven liar's loans out of the housing industry (on the grounds that they were inherently fraudulent) in 1990-1991 and the S&L debacle would have been massively more expensive had the S&L regulators listened to the economists' claim that fraud by the officers controlling banks was a "distraction." Note that we did increase S&L capital requirements, but we never made what would have been the catastrophic mistake of believing that accounting fraud could not be used to "game" the higher capital requirements that we imposed. Our most effective rule restricted growth – it killed the remaining accounting control frauds even when Congress prevented us from gaining additional funds to close the remaining frauds. Now that we can at least hope that the administration will cease attacking one of its most successful appointees, Janet Yellen, it is my hope that we can have a serious discussion about what it takes to be an effective financial regulator. We know how to do it. We showed how to do it in even more hostile circumstances in which the Reagan administration was virulently opposed to our actions "reregulating" the S&L industry. Indeed, they called us "reregulators" because they considered that term to be the most repugnant, the most redolent of incomprehension, term in their lexicon with which they could insult us. Summers and his supporters and Yellen and her supporters should talk with us at length and take advantage of what we learned, including the mistakes we made. Restoring effective regulation, supervision, and prosecutions of elite bankers is one of the most important tasks our Nation faces. The arrogance of the last three administrations in the regulatory context is staggering. Never have officials boasted so much about their purported "genius" while promoting policies that proved so destructive – and then cashed in and gotten rich through ties with the CEOs that grew wealthy by directing the control frauds that caused the mortgage fraud crisis. My view is that if a "genius" economist cannot maintain the batting average of a journeyman batter (.250) they not only are not a genius, they are the guy that gets cut from the minor league team because they cannot hit a curve. The last three administrations and the Washington, D.C. (non) "think tanks" have been filled with economists with (predictive) batting averages of around .125 and weak gloves and errant arms – all of them supposedly brilliant. There were hundreds of Office of Thrift Supervision examiners whose opinions repeatedly proved vastly superior to the economists' predictions during the S&L debacle. Akerlof and Romer concluded their 1993 article with these sentences in order to emphasize this message to their peers. The S&L crisis, however, was also caused by misunderstanding. Neither the public nor economists foresaw that the [deregulation] of the 1980s were bound to produce looting. Nor, unaware of the concept, could they have known how serious it would be. Thus the regulators in the field who understood what was happening from the beginning found lukewarm support, at best, for their cause. Now we know better. If we learn from experience, history need not repeat itself. (Akerlof and Romer 1993: 60) Larry and Janet: please listen to the regulators in the field. Please end Ben Bernanke's practice of placing economists in charge of Fed supervision. The Fed's economists are a major source of the Fed's problems. They are not the solution. If they are transformed they can be part of the solution, but the solution needs to come from the people in the field. That is particularly true with regard to detecting systemic risks. End of the glaring conflict of interest in having your examiners and supervisors be employees of the regional Fed banks which are owned by the banks they are supposed to examine and supervise.

Tuesday charts for Gold and silver before Fomc meeting Posted: 16 Sep 2013 09:06 PM PDT Commodity Trader

Gold Daily and Silver Weekly Charts - JPM To Pay About $800 Million Fine for London Whale Posted: 16 Sep 2013 08:02 PM PDT Le Cafe Américain

A beginners guide to investing in Gold Posted: 16 Sep 2013 07:00 PM PDT gold.ie

JUNIOR FOCUS: Roxgold outlines high-grade gold mine in Burkina Faso Posted: 16 Sep 2013 05:54 PM PDT Roxgold moves closer to permitting, production decision, and construction with a scoping study out today of the high grade Yaramoko gold project.

But How Near Is The Fall? Posted: 16 Sep 2013 04:45 PM PDT I will resist the temptation, succumbed to by many others, to offer a pithy title turning on some pun involving Larry Summers' name. For example, I did not title this article: Summers' Not Lovin' Summers of Our Discontent Summer Happy, Summer Not So Happy Cruel Summers School's Out For Summers Lazy-Hazy-Crazy Days of Summers Such tomfoolery is occasioned by the news yesterday that Larry Summers has withdrawn his name for consideration to be the next Fed chairman, succeeding Bernanke. The markets reacted with similar tomfoolery. Although the equity markets hadn't exactly plunged as Summers became the odds-on candidate (at a conference I went to last week, all six of the panelists during one segment said Summers would be the selection), stocks rocketed higher today as this supposedly makes a dovish Chairman more likely. Bonds rallied as well, and the dollar fell -- all of these for the same reason.

Historic Buying Opportunity Coming in Gold Stocks Posted: 16 Sep 2013 04:40 PM PDT Recently we've been writing that another opportunity is coming to buy gold stocks. While this is still the case, the facts have changed and we have to tweak our view. The evidence argues that the mining stocks are now likely to retest their lows. Rather than that buying opportunity being days away, we now feel it is weeks away. Investors and speculators need to have more patience. In this missive we discuss why a retest is coming but why it could mark a final bottom and a tremendous buying opportunity. The first reason I expect a retest is the current recovery has veered off historical course. At the current juncture three of the four similar recoveries (chart below) were at a new recovery high and the fourth closed at a new high next week. Simply put, last week was the turning point. This is confirmed by the stocks slicing through their 50-day moving averages rather than holding.     Second, the monthly chart has also veered off course. Until the end of August, the June to August pattern resembled that of the October to December pattern in 2008. However, gold stocks reversed course at the end of August and are down 9% this month. This is not the type of action you see following a major bottom.     The third point is that I made an error in my last editorial. In 1976 Gold made a V shaped bottom because it declined for 18 months without any multi-month interruption. Sure, precious metals have been extremely oversold as the current bear market is two years old. However, I neglected the obvious fact that there was a huge reprieve in 2012. Gold rallied back to $1800 and many stocks reached new all-time highs. From this vantage point, precious metals have been very oversold for less than a year and thus not enough to produce a bottom without a retest. Hours before the late June bottom I penned an editorial discussing why I felt a major bottom was imminent. Bearish sentiment was rampant. The gold stocks were nearing 9-year support. Moreover, the large caps had lost about two-thirds of their value. My historical analysis showed that only one bear market exceeded 70% and that was the cyclical bear which followed the end of the 1980 bubble and a 20-year bull market in gold stocks. Furthermore, the gold stocks had a nearby Fibonacci target that aligned perfectly with the 2011 top, 2012 bottom and the start of the 2013 crash. That target is within 1% of the late June low. See the chart below.     The points mentioned above don't get thrown out the window just because the market has failed to breakout. They are still as valid as they were a few months ago. The fact that a retest is coming doesn't invalidate those points. Below is a sketch of how things could potentially play out over the coming months. I say potentially because no one can predict the future. We can analyze history, tendencies and probabilities to come up with a reasonable guess. Given the evidence, I find it reasonable that the sector is not going to breakout anytime soon. At the same time, I find it unreasonable to expect the equities (especially GDXJ and SIL) to make new lows.     Near-term goals should be to make sure you are hedged if you are heavily long and to make sure you have some cash to take advantage of the final bottom which could occur in the next month or so. Note that the major bottom in 2000 occurred in November while the 2008 low came in late October. I guess the calendar is ripening for another major bottom. Of note is that GDXJ and SIL are in stronger shape than GDX. GDXJ declined 79% and recently rebounded 63%. SIL declined 65% and recently rebounded 55%. Those rebounds occurred in only two months! Just imagine the gains we could see after this retest. Readers are advised to watch closely and spot the companies which show the most strength during this retest. If you'd be interested in our analysis on the companies poised to lead this new bull market, we invite you to learn more about our service.   Good Luck!   Jordan Roy-Byrne, CMT Jordan@TheDailyGold.com

Gold Cannot Shrug off Bearish Sentiment Posted: 16 Sep 2013 04:17 PM PDT Rallies continue to be sold in the yellow metal as the bounce higher ran out of steam near a tough resistance level at $1330. Many traders were watching to see how gold would react on any approaches to this level and whether or not it could maintain its gains having secured a foothold there. It did not... that triggered some long liquidation as well as bringing in fresh short sellers. Bears are trying to break the market down below the $1300 level. Bulls are attempting to hold it above there. We will know very soon which side has the advantage near term. Rallies however continue to be seen, for now, as fresh selling opportunities. It is going to take some more positive performance on the price charts for that to change. The failure to hold above $1330 is not helpful to the bulls in that regard. There seemed to be some strange goings on in the Treasury market today with the long bond soaring to 131' 12 overnight only to puke out most of its gains as the trading session wore on. Treasuries look as unsure of their next move as the gold market does right now. Higher yields seem to be here to stay but no one knows exactly "how high" those yields will be before stabilizing. The truth is that the US economy is in no shape to handle higher interest rates and most bond traders realize that. They are also trying to come to terms however with any Federal Reserve "tapering" or "lack of tapering" to gauge whether they should be buying bonds or selling bonds. Each piece of economic news is therefore having an overexaggerated impact on the long bond as it confirms or denies traders' perspectives. The result is more volatility and herky-jerky type price action as firm convictions are lacking. Markets like these are the realm of the one- three minute bar chart geeks and scalpers.

India's would-be PM 'beacon of hope for the gold industry' Posted: 16 Sep 2013 03:58 PM PDT India's new Prime Ministerial candidate Narendra Modi could well be the knight in shining armor for the country's gold, silver and diamond retailers.

Summers' Fed exit fails to spur precious metals Posted: 16 Sep 2013 03:55 PM PDT The gold price fell hard Monday morning after earlier spiking to $1,336/oz despite wholesale dealers reporting lacklustre trade.

In KWN interview, Turk comments on Summers withdrawal and raids on gold Posted: 16 Sep 2013 03:01 PM PDT GATA

Today’s Volatility In Metals & Markets Could Amplify With US Fed Meeting Posted: 16 Sep 2013 02:59 PM PDT A surprising and sharp move higher started the trading day and week. Futures of most equity markets jumped more than 1% at the opening of the Asian trading sessions. Gold and silver started slightly higher. The driver was the news about Larry Summers’ resignation for the function of US Fed Chairman. As Summers would not aim for additional monetary easing, the news was interpreted as positive for the markets (i.e. more money printing coming). Reuters wrote today: “Stocks and bonds on major markets rose on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from consideration to be the next chairman of the Federal Reserve, leading investors to believe U.S. monetary policy might stay looser for longer.” However, as the trading session continued, all markets started moving south: US equities and the Nikkei closed at their lowest point of the day, less than 0.5% higher than Friday’s close and much lower than the opening of the day Crude Oil closed at its lowest point of the month Gold and silver closed at their lowest point of the month 10y Treasuries closed at the lowest point of the day Gold and silver short term charts The gold and silver price are in corrective mode since past week. The downtrend is clear on the short term price charts: Gold and silver daily charts On the longer term charts, the downtrend remain intact. The August rally did not succeed to break the trend; resistance appeared to be too strong. This week will be “make or break” for the metals. Based on the market reaction on the FOMC meetings, we can expect a decisive short to mid-term move higher or lower. Mind that the very long term view remains positive, as the secular bull remains intact for the time being.       Increased volatility with this week’s FOMC meeting The importance of this week’s FOMC meeting cannot be underestimated. In a recent article, we quoted Jim Rickards: Shorter term, increased volatility is likely. Both higher and lower prices are in the cards. It  all depends on policy makers, in particular the US Fed. Between August and September there are two FOMC meetings with a press conference: September and December. Suppose the Fed would “taper” their bond purchases they will not announce it in December because it will be right before the new Chairman will take over. September is the most likely month to announce it. So the September FOMC meeting will be an important one. Basically there are two possible outcomes. Tightening monetary policy is the first one. Doing so in a weak economy will have deflationary consequences. It will lead to higher interest rates and lower precious metals prices. Accommodative monetary policy, by contrast, would be bullish for gold and will lead to higher prices going to the end of the year. Although nobody knows the decision of the US Fed in advance, market commentary from BullionVault emhasized the most anticipated results of this meeting and the impact on gold and silver prices: “We had thought that political risks surrounding Syria and the Fed chair nomination shifted the balance of probability towards bond tapering in December, not September. But now that these risks have been lifted it seems most likely that the Fed will taper this week.” “Given the damage done last week to gold prices, only a complete delay in tapering would likely bring gold back to its late August peak.” Expect a lot of volatility and violent price action in all markets later this week and potentially the coming weeks. Our forecast 2013 – Start of Seismic Shifts in Money, Metals, Markets is likely coming true.

Bring Our Gold Campaign Now in Finland, Just 2 Weeks After Poland Posted: 16 Sep 2013 02:42 PM PDT As reported by GATA over the weekend, Finland is launching a campaign to bring its country’s gold back. The initiative is a referendum with the aim to put a deadline on the repatriation of Finland’s gold, being May 2014. The Finish website which leads the campaign is Kansalaisaloite.fi. Finland has 49.1 tons of gold. Most of Finland’s gold is kept outside of Finland. It is in vaults all over the world but mostly at the Bank of England. Earlier this year, Venezuela and Germany decided to bring their gold back. It started a whole movement across the world. Finland is the latest country in this wave. Poland was the one but last, as reported by GATA two weeks ago. The people of Finland have never been asked whether Finland should keep and hold its gold on its own. This is relevant now as the gold markets are changing significantly and the performance of currencies is unsure. The problem that will arise longer term is that probably not all gold will reach its owners, when a critical mass of the owners request a repatriation. The underlying reason is that the gold market is too leveraged: every ounce of gold in the main vaults of the US Fed and Bank of England carry a certain number of claims. There are far more claims to gold than there is available gold. Nobody knows exactly how much is sitting in the vaults and how many claims rest on the metal. But sooner or later the world will probably get to know. Read past articles: Germany's Gold Is Coming Home – Facts & Opinions Gold Is Money: Central Bank Actions Send Investors a Clear Message

GEAB N°77 ist angekommen! Finanzen, Wirtschaft, Politik und die globale Lage zum Jahresende 2013 : Drei Funken und ein Pulverfass Posted: 16 Sep 2013 01:34 PM PDT - Pressemitteilung des GEAB vom 16. September 2013 (GEAB N°77) - Der Sommer 2013 hat nicht die Beruhigung gebracht, die sich einige erhofft hatten, sondern die Krisenherde an den Finanzmärkten, in der Wirtschaft und vor allen Dingen in der globalen Geopolitik weiterhin befeuert. Der Zankapfel Syrien hat klar vor Augen geführt, dass es eine „Weltgemeinschaft" nicht mehr gibt. Die Wirtschaftsmedien können trotz aller denkbaren Tricks immer noch nicht den so sehnlichst erwarteten Aufschwung ausrufen. Die Währungskriege sind erneut aufgeflammt und wüten nun in den Schwellenländern. Und die Zinsen für Staatsanleihen sind inzwischen außer Kontrolle geraten. Leider ist vom herannahenden Herbst keine Beruhigung der Lage zu erwarten. Vor dem nach der Sommerpause erneut zusammentretenden US- Kongress liegen schwerste Aufgaben, Diskussionen und Entscheidungen: Syrien, Haushaltsverhandlungen, Schuldenobergrenze usw. Die Positionen von Demokraten und Republikanern liegen so weit auseinander und lassen brutale politische Schlagabtäusche vorhersagen. Auch die Finanzmärkte bewegen sich nun auf vermintem Gelände. Denn nun gehen die Diskussionen über das sogenannte tapering weiter, also die progressive Reduzierung der Volumina der Fed-Programme der quantitativen Lockerung, von denen die US – Wirtschaft weitestgehend abhängt. Die die Folgen der Insolvenz Detroits machen sich bemerkbar. Und zuletzt haben die großen westlichen Banken keine Wahl mehr und müssen ihre bedingungslose Unterstützung der US – Regierung einstellen. Auch in der Geopolitik dürfte es ein heißer Herbst werden: Die Schwellenländer werden die spekulativen Angriffe gegen ihre Währungen nicht länger tatenlos hinnehmen, was voraussagen lässt, dass es auch an den Devisenmärkten bald heiß zugehen wird. Weiterhin werden die Schwellenländer ihren Sieg im Syrienkonflikt sicherlich zum Anlass nehmen, einen größeren Einfluss auf der Weltbühne einzufordern. Inhalt der gesamten Veröffentlichung: 1. USA: EINE NEUE STAFFEL DER WASHINGTONER SOAP- OPERA BEGINNT 2. DIE FED VERLIERT DIE KONTROLLE 3. DAS NÄCHSTE ZYPERN WIRD AMERIKANISCH SEIN 4. DIE BANKEN LASSEN DAS FINANZMINISTERIUM IM STICH 5. DER GROSSE BLUFF MIT SYRIEN 6. ZWISCHEN SKYLLA UND CHARYBDIS 7. SCHWINDENDER US-EINFLUSS 8. DER ABKOPPELUNGSPROZESS DER SCHWELLENLÄNDER VON DEN WESTLICHEN VOLKSWIRTSCHAFTEN - FORTSETZUNG UND ENDE 9. JAPAN : REGIONALE RÜCKBESINNUNG 10. EUROPA AM SCHEIDEWEG 11. DAS SCHMERZLICHE FEHLEN EINER GLOBALEN GOVERNANCE In dieser Pressemitteilung stellen wir das 1., 2. und 3. Kapitel vor. USA: EINE NEUE STAFFEL DER WASHINGTONER SOAP- OPERA BEGINNT Angesichts der schwierigen internationalen Lage drohte das Zerwürfnis zwischen Demokraten und Republikanern beinahe in Vergessenheit zu geraten. Aber wer sich für die Verwicklungen und Handlungspirouetten in „Gute Zeiten, schlechte Zeiten in Washington" interessiert, kann sich in den nächsten Wochen noch auf viele spannende Folgen freuen (1). Die wichtigsten Handlungsstränge sind - Die Syrienkrise, auch wenn inzwischen dort eigentlich die Luft raus sein müsste, nachdem sich die Drohungen des Westens als Bluff herausgestellt haben; - Der US- Haushalt 2014 und die Schuldengrenze. Die Republikaner werden ihre Obstruktionsmacht ohne Hemmungen einsetzen, um Obama ein Maximum an Zugeständnissen zu entreißen. Es ist davon auszugehen, dass sie ihre Karten voll ausreizen werden und entweder die Gesundheitsreform kassieren lassen oder bei anderen Sozialausgaben Kürzungen durchsetzen. Vielleicht gelingt ihnen sogar beides (2). Angesichts der Abgründe, die sich auftun würden, sollte es nicht zu einer Einigung bei diesen Fragen kommen (3), kann kein Zweifel daran bestehen, dass in letzter Minute ein Kompromiss gefunden wird, vielleicht auch erst Stunden oder einige Tage nach dem eigentlichen Fristablauf. Dieser Kompromiss wird das Leben für die Menschen in Amerika, die auf Sozialleistungen angewiesen sind, noch schwerer machen (4). Dennoch wird das Spektakel eines Landes, in dem über nichts mehr Konsens besteht, die Vertrauenswürdigkeit der USA noch stärker beschädigen, die Finanzmärkte in Aufregung versetzen (was das letzte ist, was die gerade brauchen) und die Nerven der ausländischen Kreditgeber und Investoren (in erster Linie China) massiv belasten. Es wird die Kakophonie sein, die das Fass zum Überlaufen bringen und das Wenige an Vertrauen, dass die Welt noch in die ehemals globale Supermacht setzt, wegspülen wird. Und Vertrauen der Welt ist doch das einzige, was zur Zeit noch die USA vor dem Zusammenbruch bewahrt. Die US- Politik der folgenden Monate ist, kurz gesagt, der erste der drei Funken, der die Zündschnur in Brand setzen wird, die das Pulverfass der Weltwirtschaft, der es noch immer nicht gelungen ist, sich von den politischen, finanziellen und wirtschaftlichen Entwicklungen in den USA zu emanzipieren, zur Explosion bringen wird. DIE FED VERLIERT DIE KONTROLLE Schlimmer noch ist jedoch, dass inzwischen, wie wir es schon häufig angekündigt haben, sich die Zinsen der US- Staatsanleihen unkontrolliert entwickeln. Obwohl die Fed jeden Monat US- Staatsanleihen mit einem Volumenwert von 45 Milliarden Dollar aufkauft, und obwohl das US- Finanzministerium dank eines reduzierten Defizits der Bundesregierung weniger Anleihen ausgeben muss, steigen die Zinsen weiter an. Wenn lediglich die Gerüchte über die Drosselung des QE dafür der Grund wären, dann hätten die Zinsen doch zum einen unmittelbar nach dem Einsetzen dieser Gerüchte zu steigen beginnen müssen, was aber nicht der Fall war, und zum anderen lässt ein Zinsanstieg um mehr als einen Prozentpunkt für Anleihen mit zehnjähriger Laufzeit allein aufgrund eines Gerüchts über eine Drosselung von QE3 in Höhe von 10% Schlimmes für den Fall erahnen, dass die Fed ihre Währungsstützungsprogramme vollkommen einstellt. Daraus lässt sich also klar erkennen, dass die Fed die Kontrolle verloren hat; wenn sie sich anschließend die Entwicklungen als von ihr gesteuert und erwünscht zuschreibt, dann versucht sie nur, den Eindruck zu erwecken, sie habe die US- Geldpolitik noch unter Kontrolle. Außerdem ist QE3 für die Realwirtschaft alles andere als hilfreich, denn das leichte Geld speist lediglich eine Spekulationsblase an den Finanz- und Immobilienmärkten (5), was auch der Grund dafür ist, dass die Fed wenig gegen eine Drosselung einzuwenden hat, die sie als natürliche Folge der Konsolidierung der US- Wirtschaft darstellen möchte. Es geht nur noch um die Fassade, die die Fed mit viel Aufwand gerade noch so eben aufrecht zu erhalten vermag. In Wirklichkeit stehen ihr keine anderen Optionen mehr zur Verfügung. Da bläht sich zum einen ihre Bilanz immer weiter auf, zum anderen setzt sich allmählich die Meinung als herrschend durch, dass die Medizin der Fed schädlicher sei als die Krankheit, die damit bekämpft werden soll, weil sie dazu führe, dass die notwendige Konfrontation mit der Wirklichkeit und das unvermeidliche Platzen der bereits erwähnten Blasen immer weiter hinausgeschoben werde. Von dem Druck, den China und andere Länder sicherlich ausüben, wollen wir hier noch nicht einmal schreiben. Vor allen Dingen bleibt wichtigstes Ziel der Fed die Bewahrung der internationalen Leitfunktion des Dollars. Die ist lebensnotwendig für die US- Wirtschaft, die durch eine Verdrängung des Dollars als Weltleitwährung schwer getroffen würde. Dafür muss aber der Dollar seinen Wert behalten und dafür muss es für Anlieger wieder reizvoller werden, in US- Staatsanleihen zu investieren. Es ist daher bemerkenswert, dass - trotz der Gerüchte vom tapering, die im September hochkochten (6), was bedeuten würde, dass jeden Monat weniger Dollar neu auf die Märkte geworfen würden, - trotz der Zeichen für einen Krieg gegen Syrien, was traditionell zu einer Flucht in den Dollar geführt hätte, der Dollar gegenüber dem Euro nicht an Wert zulegen konnte. Das zeigt, dass der Dollar wirklich gestützt werden muss, um nicht massiv abzustürzen, was entsprechend verheerende Konsequenzen für die USA zeitigen würde. Wir werden uns noch detaillierter zum Ausbleiben der üblichen „Flucht in den sicheren Hafen" äußern, die eigentlich aufgrund des Schlagens der Kriegstrommeln gegen Syrien hätte einsetzen müssen. Das ist nichts weniger als ein Zeichen dafür, dass sich die Einstellung gegenüber den USA ändert. Das lässt für das Land nichts Gutes vorausahnen. Dieser Kontrollverlust über die Zinsen ist der zweite Funken, nicht weit vom Pulverfass, ein riesiger Funken ist es sogar, eigentlich schon eher ein Feuerwerk. DAS NÄCHSTE ZYPERN WIRD AMERIKANISCH SEIN Aber nicht nur die US- Staatsanleihen verlieren massiv an Wert. Nach der Pleite Detroits ist auch der Markt für Munis, also der Anleihen von Städten, Gemeinden und Kreisen, in den USA unter massiven Druck geraten7, wie man am folgenden Schaubild ablesen kann. Für viele amerikanische Städte ist dies eine sehr gefährliche Situation, die in den nächsten Monaten unweigerlich zu weiteren schockierenden Städteinsolvenzen führen wird. Wenn man die kommunalen und föderalen Schulden getrennt aufführt, sieht die Statistik sicherlich besser aus, aber die Risiken verdoppeln sich. Auf der Liste künftigen Opfer der Finanzmärkte steht Puerto Rico ganz weit oben, das bereits horrende Zinsen bezahlen muss8. Die Lage weist große Ähnlichkeiten mit den Ereignissen in Zypern auf, mit lediglich dem Unterschied, dass Puerto Rico von der Bevölkerungszahl drei Mal so groß ist; und dass es nicht zu Europa gehört, sondern zu den USA. Wir wetten aber einiges darauf, dass diese Insel – ganz anders als Zypern – als unbedeutend, als nicht systemrelevant eingestuft werden wird. -------- Noten: (1) Quelle: ABC 7 News, 07/09/2013. (2) Quellen: Fox News (27/07/2013), CNN Money (06/09/2013), Huffington Post (10/09/2013). (3) Vgl. z.B. Fiscal Times (10/09/2013) über die Folgen einer Nichteinigung zur Anhebung der Schuldengrenze. (4) Vgl. z.B. New York Times (05/09/2013) über die Reduzierung der Leistungen aus dem Lebensmittelmarkenprogramm, das von immer mehr Menschen in Anspruch genommen wird. (5) Wobei wir uns bei dieser Anmerkung allein auf die inneramerikanischen Folgen beschränken, die ja auch die einzigen sind, die in den Augen der Amerikaner von Bedeutung sind, trotz der weiterhin noch weltweit dominierenden Rolle des Dollars, was ja eine Verpflichtung für die US- Regierung mit sich bringen sollte, internationale Verantwortung zu übernehmen. Dazu ist es aber 40 Jahre lang nicht gekommen, und das wird auch nun nicht anders sein, wo eine schwere Krise wütet, die das Überleben des Landes gefährdet. (6) Quelle: CNBC, 28/09/2013. (7) Vgl. z.B. The Future Tense, 29/07/2013. (8) Quelle: Wall Street Journal, (09/09/2013).

Poland Latest To Seek Repatriation of Its Gold Posted: 16 Sep 2013 01:07 PM PDT Germany, Ecuador, Mexico, Switzerland. Now Poland, if a petition movement is successful, will repatriate its gold bullion reserves, currently held in the vaults of the Bank of England. The group, Oddajcie Nasze Zloto (Give Our Gold Back), seeks the return of Polish gold from the Bank of England to ensure its "safety" and the economic security of Poland. Supported by organizations such as the Mises Institute of Poland, the Business Center Club, the Mint of Wroclaw, and others, the movement has attracted the attention of the Polish parliament. In response, the parliament has asked the president of the Polish central bank to ascertain the status of the gold and conduct an audit of gold assets in England. The group's Polish-language website is http://oddajcienaszezloto.pl. Description:  Poland Gold Repatriation Movement Indicates Distrust of Fiat Currency, Global Economic Policy read more

Five valuable lessons from a true resource "titan" Posted: 16 Sep 2013 01:00 PM PDT From Casey Research:   A natural-resource insider asking who Lukas Lundin is would be like a Brit asking who the current queen of England is. You just know.   Fact is, there is no stronger figure in the resource sector than Lukas, who heads the Lundin Group of Companies founded in 1971 by the late Adolf Lundin, Lukas's father and a veritable legend in the sector.   Their website states, "With a mandate to maximize shareholder value, the Lundins have produced consistent, long-term results and have earned unprecedented loyalty among their shareholders." This is no exaggeration – and I believe it's one of the reasons why for three decades the Lundins have reigned supreme in the resource market.   In 2011, for example, they sold Red Back Mining for C$7.1 billion to Kinross Gold, and in 2012, Lundin company Africa Oil made a world-class oil discovery in Kenya, handing shareholders a ten-bagger (meaning a profit of 1,000% or more).   All in all, the Lundin Group, consisting of 15 companies, has raised over $3 billion in financing to advance its projects. Lundin companies operate in more than 30 different countries, and joint venture partners have included some of the largest companies in the world, such as Gulf Oil, Barrick Gold, BHP Billiton, and Freeport McMoRan.   I feel privileged to have been able to spend a lot of time with Lukas Lundin over the years, not just in my role as Casey's chief energy investment strategist and as a full-time investor, but also because I happen to live next door to him.   Being a great admirer of successful entrepreneurs, I've recently pondered what it is that separates Lukas from the thousands of wannabe resource titans. Here are the five valuable lessons I learned, lessons that I think any businessman should take to heart...   Read full article...   More on resources:   Gold predictions of $2,000 or $5,000 are absurd   One U.S. state will soon be the fifth-largest oil producer in the world   Resource expert: This could be the next Bakken

Controversial charts say gold could be headed to new lows Posted: 16 Sep 2013 01:00 PM PDT From Gold Scents:   As I mentioned in my last post there is a disturbing possibility that gold's intermediate cycle has topped, and done so in a left translated manner.   For clarification, left translated cycles often lead to lower lows.   In this case, if gold did top on week 9 and the intermediate cycle is now in decline, the odds are high we are going to see the June low of $1179 tested and broken before...   Read full article (with charts)...   More on gold:   The most terrifying chart for "paper gold" investors you won't see on CNBC   Doug Casey: Three stocks to own when gold recovers   Why gold stocks could quickly double from here, even if gold goes nowhere

They Act Like It Matters Posted: 16 Sep 2013 01:00 PM PDT Tweet Larry Summers is out…and the markets act like it matters.  He sent a short letter to President Obama withdrawing his name from consideration as the replacement for Ben Bernanke.  The letter was short, sweet, maybe to the point and maybe not.  Summers pointed out that his confirmation would be “acrimonious” which is an understatement to say the least.  Could it be that Larry Summers fought through the “delusions of grandeur” and decided that was going down in the history books as the Captain of the Titanic financial system was not such a great idea? The markets have reacted in schizophrenic if not delusional manner.  Stocks are up very strong as they anticipate another candidate willing to write higher dose prescriptions of liquidity.  Bonds are also up (yields down) in anticipation of slower, lesser or even no “taper.”  These 2 markets however are trading in opposite fashion from commodities which are the true beneficiaries of excess liquidity sloshing around.  Oil is down better than 1%.  This really doesn’t make any sense as oil demand (both real and on paper) should rise if a “Fed Dove” at the helm keeps pushing money and credit. Gold and silver are both down…and both up from Friday.  Up from the COMEX close and down from the “cash” close after the Andrew Maguire rally.  This stinks to high heaven.  The trading action has been that QE (which used to be very bullish) is bearish for the metals (why or how I do not know) and tapering is also bearish.  This “portrayal” is bogus and I guess we must wait until supply is gone and the physical markets steam rolls the paper markets as the price mechanism. In any case, Summers, Yellen, Kohn, Geithner or even (no chance) Volcker…it doesn’t matter.  The dollar system is entirely a lost cause.  No one or no policy can ever “right” the position we find ourselves in.  Print, don’t print, QE, don’t QE, raise taxes or lower taxes, cut spending or spend like drunken sailors…it’s over…it’s mathematically over.  “New money” is no longer entering the U.S. Treasury market; in fact, old money is exiting the market which leaves ONLY the Fed as buyer of last and ONLY resort. The “market” itself is not “making” interest rates, the Fed is.  In the old days the Fed would “influence” short term rates and let the markets fend for themselves and “discover” where rates should be in the 1 yr. and longer maturities, this is no longer so.  The Fed has been “making interest rates up” like a bad liar for the last 5 yrs., we know that central planning does not work because we have seen so many failed examples in so many different countries since the beginning of recorded time…and this IS central planning. Since 2008 the “liquidity dump” administered by the Fed has only done one thing, the banks have not failed “publicly.”  The “too big to fail” banks have been allowed to mark assets/derivatives to whatever fantasy prices of their choosing which has allowed them to “live.”  The liquidity dump and record deficits have not turned the economy up, we are only bottom bouncing.  The record low interest rates, record deficits and literally unlimited liquidity stopped the economy from falling any further but have not turned Main Street into one of growing commerce. My point is this, by all rights and history with all of the policy “stimulation” we should have a rip roaring economy 5 years later…we don’t…and we won’t.  I guess the analogy boils down to “who cares who is driving the bus if the motor is overheating, it’s leaking oil and water and sparks are flying from the rims?”  Does it matter who the chairman of the Federal Reserve is?  No.  Alan Greenspan was the last chairman who mattered because sometime in the late 1980′s or early 90′s was the last time, last chance…to change or alter policy and take our medicine and accept a full-fledged recession to cleanse the system. Greenspan never did this, Bernanke couldn’t do this and surely his successor has no chance of ever allowing money growth or credit creation to slow down much less turn negative.  Like I said, “it doesn’t matter” because this Ponzi scheme is going to hit the wall as sure as the Sun will rise tomorrow.  Does one policy cause it to happen tomorrow while another postpones it for another 6 months?  Yes, maybe but the further down the road we go the worse it will be when this thing busts.  We have more debt, more derivatives and more “players” (which now include many sovereign governments) involved in this bubble than we did 5 years ago. It would have been bad, really bad if we cleansed debt via recession in 2000-2002, it would have been catastrophic in 2008-09.  Now?  I do not know any words to describe what we face.  Whoever is chosen as the next bus driver for the Fed will go down in the history books as the one who was driving when we hit the wall.  It matters not who it is; I can only wonder “who in their right mind” would accept the job?  If they don’t understand the futility then shame on them, if they take the job because of the “prestige”…well, like I said, “no one in their right mind would even consider taking the job”… That is if they are smart enough to know.Similar Posts: They Have to Taper, but They Can’t Gold and Silver's Performance Much Easier to Take If Your Goals are Like Ours We Made it Through Multiple Wars, a Few Depressions, and Pandemics. We Can Make it Through Our Current Problems Too.

Gold and silver price manipulation ends with the death of fiat Posted: 16 Sep 2013 12:33 PM PDT The silver and gold market has been rife with speculation about ongoing price manipulation. Most investors are now familiar with this concept, and even the mainstream has admitted that undue market influence has occurred.

Gold falls on prospects of US Fed tapering Posted: 16 Sep 2013 12:11 PM PDT Despite gold's falling price in face of tapering, Julian Phillips counters that he sees gold rising even with US growth.

The CFTC and the sad joke of "Regulation" Posted: 16 Sep 2013 12:05 PM PDT If the allegations are true, there are millions of victims of this ongoing fraud.  Any person whose retirement account includes an index fund owning gold or silver mining companies has been defrauded as a result of these actions.  Any investor who owns gold or silver has been defrauded by these actions.  Any person who, in desperate times, has had to sell gold or silver at a "cash for gold" shop has been defrauded by these actions.  What is the CFTC going to do about it?  We all know the answer to that question.  More importantly, what are YOU going to do about it?  read more

Confessions of a former gold bear Posted: 16 Sep 2013 11:48 AM PDT BullionVault's Miguel Perez-Santalla reflects on gold's rise following the collapse of Lehman Brothers and the beginning of QE five years ago.

Jim Rickards on a Return to a Gold Standard: “The Dollar is Definitely Collapsing” Posted: 16 Sep 2013 11:30 AM PDT In this MUST WATCH interview, Currency Wars author Jim Rickards states that the dollar standard is being abandoned by the United States, that it is “definitely collapsing”, and that either the IMF’s SDR, gold, or a combination of the two will become the next global reserve currency in the dollar’s place: “A return to a [...] The post Jim Rickards on a Return to a Gold Standard: “The Dollar is Definitely Collapsing” appeared first on Silver Doctors. Check out these similar articles: Fed To Prompt Currency Crash and Return to Gold Standard Jim Grant: Fed Action Will Prompt Return to Gold Standard! Martin Armstrong: A Return to the Gold Standard Would Create a GREAT DEPRESSION

Bombshell Posted: 16 Sep 2013 11:30 AM PDT Tweet On yet another day of Fed failure to meaningfully prop up the deteriorating Treasury market – while PIIGS sovereign bonds were "slaughtered into the close" – something incredible occurred, which even I am still in disbelief about.  And that something was – drum roll please – an actual sharp increase in PM prices late on a Friday afternoon. Some might say it was due to "short covering"; extreme undervaluation; fears of a weekend turn of events in Syria; the PM-bullish COT report, released at 3:30 PM EST; or even reduced expectations of Fed tapering (personally, I expect no more than a "token taper," if anything at all, which may well BACKFIRE on the Fed's best laid plans).  However, such events have occurred on countless Friday's before; yet, NEVER are prices allowed to overcome the Cartel's rote capping algorithms; particularly before weekends – when bullish Friday closes can prompt market participants to "do their homework" while perusing their Sunday New York Times, Barron's, or the like.  In other words, the ANSWER to the question of why gold and silver surged late in the day is because a new BOMBSHELL was published at 2:00 PM EST by King World News – regarding new evidence that JP Morgan has indeed been manipulating the gold and silver market for years… Suffice to say, this will be my dedicated topic tomorrow; but for now, know that Andrew McGuire's revelation that two other JP Morgan whistleblowers submitted detailed evidence of PAPER PM manipulation 15 months ago, but were completely ignored by the CFTC, may well catalyze a run on PHYSICAL metal equivalent to what occurred after the initial McGuire disclosures in March 2010; and thus, just one day after JP Morgan announced it will be spending an additional $4 billion to deal with its exploding legal and regulatory costs! Better yet, enigmatic CFTC Commissioner Bart Chilton; who to this day has been "all bark, no bite," violently lambasted JP Morgan and Goldman Sachs – in particular – in a seething speech titled the Brutality of Reality; stating that not only are PAPER PMs – and many other "paper commodities" – manipulated by banks, but that "it’s time for an intervention. Congress should not only do away with the statutory exemption that has been used by Goldman and Morgan, but also do away with the ability of the Fed to allow any commodity-related ownership by the banks whatsoever.”  And “for those paying attention, there will likely be more cases filed by the CFTC in the next few weeks than we’ve seen in a long time. Stay tuned." Perhaps Zero Hedge is just starting to get wind of the daily PAPER manipulation of markets I have been writing of for years, but better late than never.  Anas for the world's BIG MONEY, trust me it is already well aware of what's going on.  When the PM suppression is finally understood by the "medium money" – and inevitably, the investment community at large – not only will PHYSICAL PM prices be many multiples of the current levels, but supply will be GONE, GONE, GOODBYE.  In other words, not only will prices be too high for the average person to afford – and that goes for silver as well – but there will be NONE to purchase at any price. Stay tuned for tomorrow's article on this VERY important development; and get ready for some near-term squirming by TPTB.  First, from "Helicopter Ben" after Wednesday's FOMC meeting; and next, Jamie Dimon and company when the silver scandal starts expanding.  By the way, I still have little confidence that CFTC will go after JP Morgan specifically this month; however, widespread dissemination of the aforementioned revelations may well prove to be a veritable "Ebola Virus" to those attempting to illegally suppress PM prices.  And oh yeah, whether JP Morgan and Goldman Sachs are ensnared in this deadly web or not, don't' forget they have spent 2013 going MASSIVELY LONG the gold market!Similar Posts: The JP Morgan Mystery Goldman's 'Short Gold' Call Of April 10th JPMorgan Advises their Clients to Buy Gold

Confessions of a former gold bear Posted: 16 Sep 2013 11:10 AM PDT Last Sunday, Sept. 15, marked the five-year anniversary of the collapse of Lehman Brothers. At that time the gold price was trading near the $900 per ounce level. I believed that to be on the high side, actually expecting gold to trade down to around $700.

Gold sees damaged weekly charts Posted: 16 Sep 2013 10:57 AM PDT There is a disturbing possibility that gold's intermediate cycle has topped, and done so in a left translated manner. For clarification, left translated cycles often lead to lower lows.

Summers' Fed exit fails to spur precious metals as fundamentals return Posted: 16 Sep 2013 10:50 AM PDT The price of gold fell hard Monday morning, retreating near Friday's five-week lows after earlier spiking to $1,336 per ounce in Asian hours despite wholesale dealers reporting lacklustre trade.

War Is Coming: 10 Reasons Why A Diplomatic Solution To The Syria Crisis Is Extremely Unlikely Posted: 16 Sep 2013 10:30 AM PDT Over the past few days, there has been a tremendous wave of optimism that it may be possible for war with Syria to be averted.  Unfortunately, it appears that a diplomatic solution to the crisis in Syria is extremely unlikely. The following are ten reasons why war is almost certainly coming… 2013 Gold Eagles As [...] The post War Is Coming: 10 Reasons Why A Diplomatic Solution To The Syria Crisis Is Extremely Unlikely appeared first on Silver Doctors. Check out these similar articles: Sources: Syrian Rebels Plan Chem Attack on Israel from Assad-Controlled Territories Syrian President Bashar al-Assad’s Response to Chemical Weapons Allegations in his own words A Really Foul Smell Is Coming From The White House

Does the moon control gold and silver prices? Posted: 16 Sep 2013 10:27 AM PDT With all this talk of war and tapering, it might be time to step back and look more at forces outside of human control and their impact on precious metal prices. Is it so unusual to ask if something older than mankind might be affecting how we price these metals?

Chart of the Day: Where Has All the Gold Gone? Posted: 16 Sep 2013 10:24 AM PDT Today's MUST SEE Chart of the Day examines COMEX warehouse registered gold inventories vanishing act, as registered gold has plunged from 3.5 million ounces in 2012 to 663,002 today! Click here for today’s Chart of the Day depicting the epic plunge in COMEX registered gold inventories:

Gold up in Asia after Summers exits Fed race Posted: 16 Sep 2013 10:11 AM PDT Gold and silver futures surged 2.1% and 3.6% respectively and the dollar fell on the open in Asia prior to determined selling which again capped precious metal prices. Analysts attributed the price gains on the withdrawal of Larry Summers from the Fed chairman race.

JPMorgan in the Manipulation Of The Gold And Silver Posted: 16 Sep 2013 10:00 AM PDT Tweet I'm not writing today but I dug up a few short and interesting articles for you to read. Be sure and watch the following two short videos below. Up first is an interview with Charles Nenner in Jim Sinclair's section below.  They explain why they are so bullish on gold and silver and so bearish on the stock market.  These folks have been very accurate in the past on their gold calls. Also, be sure and watch the Egon von Greyerz video in the GATA section.   There is a discussion of Andrew Maguire's stunning revelation that two whistleblowers, former employees of JPMorgan, have come forward implicating JPMorgan in the manipulation of the gold and silver markets. If proven true, this is explosive!  Read the following below from Ted Butler, who has been writing about the JPMorgan (illegal but so far allowed) corner of the gold and silver market.  If you want to know what is going on with silver, subscribe to Butler Research. I know that some have questioned how it could be possible for gold to decline so much in price if JPMorgan held a long market corner. The answer is clear, once you remember that prices only fall sharply in order to enable JPMorgan to buy. Near the bottom in gold prices at $1200, JPMorgan was long 85,000 contracts. On the subsequent $250 rally, JPM sold off and close out nearly 30,000 contracts of their long gold market corner, booking and realizing $350 million in profits. Now JPMorgan has decided to buy more and has cratered gold prices by more than $100 in order to re-buy as many new gold contracts as they can. JPMorgan is not concerned that the market may have temporarily gone against their existing gold corner as they continue to buy as many contracts as possible. JPM wouldn't have any problem in meeting margin calls as it is presently structured; because it rests upon unlimited funding. When you look back at this year, it is crystal clear that JPMorgan made $3 billion in buying back big short positions in gold and silver and actually flipping their short corner in COMEX gold to a long corner that they've already milked for a $350 million profit recently and so far.  – Ted Butler, September 13, 2013 I also grabbed of few of the highlights from Zero Hedge (The Best And Worst Performing Assets Since Lehman Are…) Bix Weir (Bart Chilton Speaks to Congress) and Richard Russell (I Suspect That Silver Is Readying Itself For a Push To The Upside). Couple this information with the regular articles from Bill Holter and Andy Hoffman, in today's newsletter, and your time will be well spent. Dollar Heading Down For Years, Gold and Silver To Surpass Recent Highs Posted September 13th, 2013 at 1:35 PM (CST) by Jim Sinclair Dr. Nenner has been very accurate in gold so listening to his views is worthwhile. My job, among many others, is to get you resources beyond me and the good ole gang. Please give this serious consideration where gold, silver, stock markets, the US Treasury bond market and the US dollar are concerned. Charles Nenner Research discusses the Gold Cycle HardAssetInvestor HAI AUGUST 13, 2013 Charles Nenner research has the dollar going down for years soon, Gold and Silver Prices to move past its recent highs soon. Charles Nenner Research Says Stocks Are Near The Top, Downturn Will Drive Everyone Crazy ___________________________________ The Great Rotation Posted September 13th, 2013 at 12:42 PM (CST) by Jim Sinclair BofA: If The American Economy Doesn't Accelerate Soon, It NEVER Will Matthew Boesler Sep. 13, 2013, 9:20 AM BofA Merrill Lynch chief investment strategist Michael Hartnett – the one who coined the term “Great Rotation” – takes a gloomy view of the future in his latest note to clients: The Next 5 Years: Curb Your Enthusiasm Significant monetary stimulus, the end of fiscal austerity, a booming housing market, a cheap dollar, record corporate cash balances…if the US economy does not significantly accelerate in coming quarters, it never will. We assume it will, and favor assets (e.g. equities), sectors (e.g. banks) and markets (e.g. Europe) that have lagged in the "High Liquidity-Low Growth" world of recent years. Asset price will not do as well in the next 5 years, no matter what the "nouveau bulls" say. Central banks will be less generous, corporations less selfish. And when excess liquidity is removed it will get "CRASHy". The dollar and (temporarily) volatility will be the last assets to surge as Deleveraging ends and an era of Normalization begins. In short, don't expect stocks to go on an awesome tear over the next few years as they have in the past few years, beware of a market crash, and watch developments in the U.S. economy closely. More… Below is the article from GATA: Egon von Greyerz: Today’s report of confession of JPM’s rigging moved gold Submitted by cpowell on Sat, 2013-09-14 00:36 Dear Friend of GATA and Gold: Gold fund manager Egon von Greyerz, writing tonight for King World News, finds terribly significant and even market-moving today’s KWN interview with London metals trader Andrew Maguire about two JPMorgan Chase employees who have disclosed the bank’s metals market rigging to the U.S. Commodity Futures Trading Commission: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Historic_JP_Morgan_Whistleblower_Interview_Moves_Markets.html CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc.  Similar Posts: JPMorgan Advises their Clients to Buy Gold Comex Registered Inventories – Could Disappear Any Day! Is This a "Normal" Market?

Gold trims gains but still up after Summers news Posted: 16 Sep 2013 09:20 AM PDT SAN FRANCISCO (MarketWatch) — Gold futures gained ground Monday but were off the day's high hit on news that former Treasury Secretary Larry Summers had withdrawn from consideration for the job of Federal Reserve chairman. Gold for December delivery rose $8.70, or 0.7%, to $1,317.30 an ounce on the Comex division of the New York Mercantile Exchange, erasing some of its 1.7% loss from Friday. The contract had been trading around$1,330 in the early morning hours on Monday. "It was an interesting move overnight, but it just didn't really seem to have much staying power," said Darin Newsom, senior analyst at DTN, a commodity-market research company. He described gold's initial jump as "a knee-jerk reaction" to the Summers news, adding that traders are now focused on "the next round of headlines." Summers was widely viewed as more hawkish than other leading candidates to run the Fed, meaning he was seen as more likely to push for a speedier end to the central bank's easy-money policies. Those policies have supported gold and pressured the dollar. "The market now sees continuity for the Fed as a groundswell of support for [Fed Vice Chair] Janet Yellen to take the helm is likely," said Gene Arensberg, editor of the Got Gold Report. "We have to wonder, however, if Summers's decision is a signal that the smartest man in the room sees too much trouble ahead and that is why he chose to stand down," said Arensberg. (Continued...) Please see the entire article at the source:  MarketWatch  http://www.marketwatch.com/story/gold-gains-sharply-as-dollar-drops-on-summers-news-2013-09-16?link=MW_home_latest_news By Myra P. Saefong and Victor Reklaitis, MarketWatch

Chart of the Day: Where Has All the Gold Gone? Posted: 16 Sep 2013 09:00 AM PDT Today’s MUST SEE Chart of the Day examines COMEX warehouse registered gold inventories vanishing act, as registered gold has plunged from 3.5 million ounces in 2012 to 663,002 today! 2013 Gold Eagles As Low As $52.99 Over Spot at SDBullion! 1 Oz Gold Krugerrands As Low As $34.99 Over Spot at SDBullion! The post Chart of the Day: Where Has All the Gold Gone? appeared first on Silver Doctors. Check out these similar articles: Chart(s) of the Day: Gold Waterfall Chart of the Day: Epic Plunge in Total COMEX Gold Inventory Chart of the Day: Gold Premiums in China Spike to $120, Up Nearly 5 Fold Since April

Out of This World Posted: 16 Sep 2013 09:00 AM PDT Tweet I have long been a devoted "Trekkie"; not so much regarding the original series – although I have a great deal of respect for it – but two of the four television "sequels."  I could never get in to Deep Space Nine or the lesser known, and newest of the four – Enterprise.  However, I rank The Next Generation and Voyager as two of the best written, acted, and produced shows I have ever watched; and to this day, watch reruns despite having seen each episode multiple times.  And that's a LOT of episodes, as "TNG" filmed 176, and Voyager 168! Regarding the latter, I always thought its name was simply made up to reflect the show's theme; i.e., a voyage to space's outer reaches.  However, given the typical brilliance of Star Trek writers, I should have known better; and only today did I realize the title's genesis.  Sure, I should have remembered the NASA satellite Voyager I being launched in 1977; and certainly when it flew by Jupiter, Saturn, Uranus, and Neptune in 1979, 1980, 1986, and 1989, respectively.  It never met up with Pluto, but remember that at the time, Pluto was NOT the most distant planet (heck, it's not even categorized as a planet anymore).  Anyhow, Pluto's orbit crosses with Neptune's for 20 out of every 248 years – and in the 1990s when Voyager I was in the vicinity, such was the case.  And thus, demonstrating just how vast the galaxy is; it took Voyager 24 years from passing Neptune to reaching the edge of the Milky Way itself; i.e., "interstellar space."  And thus, eleven billion miles from its launch point, it has truly gone boldly "where no man has gone before." Why do I bring this up, you ask?  Because essentially ALL reasons has left the cancer-stricken global economy; replaced by the PROPAGANDA supporting financial markets underpinned solely by MONEY PRINTING and MANIPULATION.  In other words, ALL I learned in earning my Finance degree and CFA designation – not to mention, 24 years of Wall Street experience – is now moot; i.e., as "out of this world" as the death throes of a 42-year made fiat currency experiment. At the moment, "news" no longer matters; and frankly, neither does the Fed's "tapering" decision next week.  Even MSM lackey Reuters can't figure out what the heck the FOMC is doing; i.e., discussing (miniscule) reductions in bond monetization amidst an environment of surging yields, weak economic data, and an unemployment rate not only well above the Fed's stated 6.5% 'tapering threshold,' but grotesquely overstated due to the plunging Labor Participation rate and other structural weaknesses.  Not to mention, the gaping disconnect between surging "waiters and bartenders" jobs and plunging restaurant sales; which in my view, is due to the explosion of part-time hiring as businesses reduce full-time, benefits-eligible employees ahead of Obamacare's full implementation. And how about this morning's "trifecta of doom"; as retail sales were dramatically below expectations – just three days from Wednesday's FOMC meeting; annualized inflation was nearly 4% above expectations; and the Consumer Sentiment plunge was the worst on record?  And the result, of course:  higher stock and Treasury prices – and continuing capping of Precious Metals following an already ridiculous two-week smack-down!  Yes, logic has left the universe – at least from a reporting standpoint.  However, "Economic Mother Nature" is still here; and given that PHYSICAL gold and silver demand are experiencing historic demand – whilst production is already freefalling – you can "bank on" fundamentals eventually winning the day; just as they ALWAYS do! As for today's topic, I'm not even close to done.  Yes, logic has "left the building"; but that alone is not worthy of a dedicated article.  What is, however, is the giant sucking sound from the East becoming more audible with each passing day; i.e., the MASSIVE flow of gold from the Western Hemisphere to the East.  Whether legally – via Chinese imports, for example; or illegally, amidst exploding Indian smuggling; the gold is making Western vaults look like sieves – en route to its new, PERMANENT homes in the East. The Chinese demand numbers are simply "otherworldly"; as combining imports from Hong Kong and estimated domestic production – ALL of which is purchased by the government – China is purchasing up to 80% of ALL global production.  And those numbers, of course, ignore the fact that gold entering the country in cities other than Hong Kong are not even reported.  In India, the recent import tariffs and restrictions have catalyzed record smuggling, while the Shanghai Exchange has seen a literal explosion in physical deliveries.  Keep in mind, the below chart only contains 2013 data through July; and thus, it is entirely possible Chinese imports will end up more than double the 2012 level.  Now do you understand why the TPTB work so hard to suppress the PAPER PM market; and more importantly, why they're doomed to fail? Equally incredible is the route such exports are taking; as per the above "sucking sound" article, and this one from Mike Krieger, the amount of gold exports from London to Switzerland is at least ten times faster than in 2012 – as you might expect, at RECORD levels.  This gold is undoubtedly being sent to Swiss refiners – which cumulatively, process roughly 70% of the world's doer into bars and coins.  And given that roughly 80% of global gold production is being exported to (or kept within) China, clearly the refiners are being asked to recast 400 ounce "London Good Delivery" bars into denominations more commonly used in Asia. I reported on such MASSIVE Chinese retail demand when I traveled to Guangzhou last month; and trust me, it's for REAL! Reliable LBMA inventory data is difficult to find, but COMEX "registered" gold could literally disappear any day now; per the alarming chart below, depicting a 77% plunge since the April 12th-15th "ALTERNATIVE CURRENCIES DESTRUCTION; not to mention, the 32% YTD decline in the GLD ETF's inventory – assuming it even exists – compared to just a 20% price decline… Perhaps the space comparison is a bit hokey; but the fact remains that the aforementioned trends – of soaring gold demand, exploding Eastern imports, hemorrhaging Western inventories, and of course, the West's "temporary insanity" as regards its analysis of such – are dramatically strengthening each day.  At the current rate, COMEX registered inventories will be gone by early next year; whilst GLD's remaining credibility of is on the verge of disappearing, now that it is denying holders their contractual right to redeem shares for PHYSICAL bullion. If you believe "Economic Mother Nature" can be defeated by the forces of MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA, you're welcome to "press your luck" with the diseased PAPER money system – despite the gaping, expanding leaks it's experiencing each day.  But I must warn you, she has never lost to such petty, short-range weapons; and given how much self-inflicted damage they have already incurred, the odds of losing her undefeated status are "slim to none."  I'll continue to sleep the "SLEEP OF THE JUST" knowing my assets are protected with REAL MONEY.  Will you?Similar Posts: Comex Registered Inventories – Could Disappear Any Day! You've All Been Brainwashed Irreversible, Global Debt Addiction

What the Orgy of “Lehman Five Years On” Stories Missed Posted: 16 Sep 2013 08:34 AM PDT One of the reasons I haven’t weighed in with the obligatory Lehman five year anniversary piece is that so many of them are variations on a limited range of themes, to wit: The Horror of the Meltdown Hagiography (and Revisionist History) of the Great Men Who (Allegedly) Saved Us from the Horrors of the Meltdown Revisionist History on Behalf of Various Parties Who Let the Perps Get Away with Wrecking the Economy for Fun and Profit How Nothing Much Was Fixed How/Why All Those Smart People Didn’t See It Coming Mind you, we’ve been getting a steady diet of these types of stories for years, so a concentrated dose, particularly for someone like yours truly, who was pretty attentive to the events in real time and all the flailing around to deal with the upheaval and engage in reregulation theater, is cloying. And aside from all this rehash feeling more like an overdose of tired tropes than new insight, the focus on what has come to be known as Lehman weekend is also the most bankster-flattering frame for viewing the crisis. Making Lehman the critical episode averts attention the fact that the perturbations began more than a full year earlier, when the asset-backed commercial paper market seized up, and went through two additional acute phases, each requiring more radical interventions before the turmoil of September-October 2008. It also puts the spotlight on the collapse of Lehman itself, the loss of the next domino, AIG, and the political and market mayhem of the next few weeks to prevent further wreckage. If I were a propagandist, I’d want the public to equate the crisis with the Lehman implosion. The Lehman death spiral is strongly identified with the Andrew Ross Sorkin “great men struggling to save the world economy” version of events, as well as the “could/should Lehman have been saved?” debate. It also takes attention away from the bigger questions of how much the crisis really cost, and how the Obama Administration and the Fed continued to subsidize the banks even while pretending that the crisis was past and everything was fine (ZIRP and QE, which are taxes on savers and retirees, the continuing foreclosure/mortgage mess, which was acknowledged in Geithner’s infamous “foaming the runway” comment to be all about sacrificing homeowners for the benefit of bank balance sheets). Perhaps the ugliest part of this picture is that the officialdom believes its own PR, that a zombified economy with broadly-measured unemployment in the mid-teens and years of a desperately difficult job market for young adults is a good outcome and they can rest on their laurels. This year, the Lehman meltdown anniversary has brought out some new variants on old post-crisis themes. The add-on to the “Great Men Who Saved Us From the Meltdown” account is to contend that their efforts were successful when viewed over a longer time frame. An example is New York Magazine’s Yes, Wall Street Has Changed Since Lehman Went Bust. Let’s look at one of its arguments: Complaint: Nobody on Wall Street has been punished for what happened.… [I]t’s true that the Jimmy Caynes and Dick Fulds of the world are free men, and that this fact is emotionally grating…. The truth is, the big banks have been punished for the crisis in the way that hurts them much more than jail time: on their balance sheets. They’ve spent a staggering $103 billion on lawsuits stemming from the crisis (more than their entire 2012 profits, Bloomberg notes), traded below their book values, and seen their returns on equity (a core measure of profitability) plummet so low that bankers are worried that investors will give up on them. Huh? This obtusely misses the issue. Who gets hurt by this litigation? Not the responsible parties, the bank executives and producers, but bank shareholders. In addition, the legal costs he cites are all legal costs since the crisis, not all legal costs that resulted from the crisis. Recall that Josh Rosner developed a rap sheet as long as an arm for JP Morgan. Here is his list of of the matters underlying this $8.5 billion of regulatory settlements: Bank Secrecy Act violations; Money laundering for drug cartels; Violations of sanction orders against Cuba, Iran, Sudan, and former Liberian strongman Charles Taylor; Violations related to the Vatican Bank scandal (get on this, Pope Francis!); Violations of the Commodities Exchange Act; Failure to segregate customer funds (including one CFTC case where the bank failed to segregate $725 million of its own money from a $9.6 billion account) in the US and UK; Knowingly executing fictitious trades where the customer, with full knowledge of the bank, was on both sides of the deal; Various SEC enforcement actions for misrepresentations of CDOs and mortgage-backed securities; The AG settlement on foreclosure fraud; The OCC settlement on foreclosure fraud; Violations of the Servicemembers Civil Relief Act; Illegal flood insurance commissions; Fraudulent sale of unregistered securities; Auto-finance ripoffs; Illegal increases of overdraft penalties; Violations of federal ERISA laws as well as those of the state of New York; Municipal bond market manipulations and acts of bid-rigging, including violations of the Sherman Anti-Trust Act; Filing of unverified affidavits for credit card debt collections ("as a result of internal control failures that sound eerily similar to the industry's mortgage servicing failures and foreclosure abuses"); Energy market manipulation that triggered FERC lawsuits; "Artificial market making" at Japanese affiliates; Shifting trading losses on a currency trade to a customer account; Fraudulent sales of derivatives to the city of Milan, Italy; Obstruction of justice (including refusing the release of documents in the Bernie Madoff case as well as the case of Peregrine Financial). Mind you, most of the ones that resulted in large dollar amounts likely resulted from the filing of litigation. Also note this list and thus the $8.5 billion total excludes payouts made by JP Morgan resulting from private lawsuits, like the $50 million awarded to billionaire Len Blavatnik because the bank lost $100 million of his money as a result of violated its guidelines for investing funds in a low-risk cash management vehicle. Finally, that total is the amount of regulatory settlements only and does not include JP Morgan’s legal costs. Now admittedly JP Morgan has the most extreme skew of all the major banks in terms of how much bad conduct it has engaged in outside the mortgage arena. Nevertheless, you get the picture that calling all the legal costs that banks have incurred since the crisis as crisis-related is just plain misleading. Finally, in many (likely nearly all) cases, the damages would be tax deductible, and third-party legal expenses certainly would be. So comparing these largely pre-tax charges to after-tax dividends is yet another bit of misdirection. Let’s now turn to the stories you should be reading but from what I can tell, aren’t: The Media and Pundits Are Wrong When They Call the Crisis a “Housing Crisis”. Repeat after me: it wasn’t a “housing crisis.” A “housing crisis” would still have been ugly, but it would not have produced a meteor-hitting-the-planet level of disruption to the markets. Look, subprime was a $1.3 trillion market. Losses were roughly 40%. That crisis would have produced a really serious recession, but not a financial system near- death experience.* This was an “wildly interconnected and undercapitalized big financial firms got high on CDOs and other leveraged bets on housing and killed themselves and got turned into zombies” crisis. CDOs and credit default swaps allowed banks, monolines, and AIG to wind up with exposures way way in excess of the real economy value of subprime lending. How Gillian Tett Ran Rings Around All the Financial Regulators in the Runup to the Crisis. There’s been some effort in recent years to single out economists like William White, Claudio Borio, and Steven Keen, who warned that the bubbles underway were likely to end badly. But the commentators warned about the uniquely destructive feature of this crisis, the amplification of real economy exposures, haven’t gotten the kudos they deserve. The Financial Times’ Tett and an astonishing analyst named Henry Maxey were among the few that wrote about how the leverage-on-leverage created by CDOs prior to the crisis and their potential explosive impact. The regulator that was closest to having a good real time reading (as in had many of the critical details and risks right but didn’t appreciate the key mechanisms till later) was the Bank of England in its terrific semi-annual Financial Stability Reports. Tett has been indirectly acknowledged with her star turns (the most notable in Charles Ferguson’s Oscar-award-winning Inside Job) but more formal recognition of the significance of her pre-crisis work is way past due. Simon Johnson Was Right, Dammmit, and the Looting Continues. While many of the accounts of the last few days discuss regulatory reform and generally conclude not enough was done, few will take that sorry fact to its logical conclusion, namely, that the financial services industry is still predatory and parasitic. Simon Johnson, in May 2009, described the crisis as a “quiet coup” that cemented the control of financial oligarchs. The resolution of the crisis has left them even more deeply entrenched. Not only did they come out richer from the “blow up the economy for fun and profit” exercise (Wall Street bonuses in 2009 and 2010 were higher than record 2007 levels), but the rescues also placated the monied classes by goosing asset values and accelerating the redistribution of income away from ordinary people to the 0.1% and their bag-carriers. Edward Saez, who with his regular co-author Thomas Piketty is generally recognized as the most authoritative expert on income and wealth inequality in the US, just released his latest update last week. It’s clear who benefitted from how the crisis was resolved: Big Finance Could Have Been Reformed and Obama is the Reason it Wasn’t. The resigned “the banks were too powerful” meme is convenient and completely untrue. We wrote in 2010: Recall how we got here. Early in 2009, the banking industry was on the ropes. Both the stock and the credit default swaps markets said that many of the big players were at serious risk of failure. Commentators debated whether to nationalize Citibank, Bank of America, and other large, floundering institutions. The case for bold action was sound. The history of financial crises showed that the least costly approach is to resolve mortally wounded organizations, install new management, set strict guidelines, and separate out the bad loans and investments in order to restructure and sell them… The widespread, vocal opposition to the TARP was evidence that a once complacent populace had been roused. Reform, if proposed with energy and confidence, wasn't a risk; not only was it badly needed, it was just what voters wanted. But incoming president Obama failed to act. Whether he failed to see the opportunity, didn't understand it, or was simply not interested is moot. Rather than bring vested banking interests to heel, the Obama administration instead chose to reconstitute, as much as possible, the very same industry whose reckless pursuit of profit had thrown the world economy off the cliff. There would be no Nixon goes to China moment from the architects of the policies that created the crisis, namely Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, and Director of the National Economic Council Larry Summers. Now that we’ve had more commentary from insiders like Sheila Bair and Neil Barofsky, it’s clear that Obama, who whipped for the TARP and has finance Machiavel Bob Rubin as one of his major sponsors, was never going to do anything that might inconvenience Big Finance. One of the most important measures to rein in banks would have been to restructure Citigroup, to demonstrate that persistently reckless institutions (Citi nearly failed in the early 1990s and had gotten in deep doo-doo in the Latin American lending crisis of the late 1970s) would be cut down to a less dangerous size. But that would never happen with Rubin as a Citi board member. Had Obama been serious about banking reform, it would have been possible to get the other major actors on the same page. The Bank of England has been keen to fix banks; Mervyn King and Andrew Haldane, along with Adair Turner at the FSA, have been fierce critics (you’ve heard nothing remotely comparable from US regulators) and fought to get a version of Glass Steagall implemented. Had the US been leashing and collaring its financial firms, the Bank of England and FSA would have has more success in beating back opposition from the UK Treasury, which has been a stalwart bank defender. And the ECB? Remember how it needed US dollar swap lines in a pinch to save its financial institutions? The ECB might have grumbled a lot, but with the top regulators in the two major financial centers taking a tough stance, it would have fallen in line. But this section of ECONNED, published in early 2010, not only recaps the crisis but anticipates where we are now. And it’s disappointing to see that there really is not much to add: It is easy to be overwhelmed by the vast panorama of financial instruments and strategies that have grown up (and blown up), in recent years. But the complexity of these transactions and securities are all part of a relentless trend: towards greater and greater leverage, and greater opacity. The dirty secret of the credit crisis is that the relentless pursuit of "innovation" meant there was virtually no equity, no cushion for losses anywhere behind the massive creation of risky debt. Arcane, illiquid securities were rated super-duper AAA, and with their true risks misunderstood and masked, required only minuscule reserves. Their illiquidity and complexity also meant their accounting value could be finessed. The same instruments, their intricacies overlooked, would soon become raw material for more leverage as they became accepted as collateral for further borrowing, whether via commercial paper or repos. But even then, the bankers still needed real assets, real borrowers. Investment bankers screamed at mortgage lenders to find them more product, and still, it was not enough. But credit default swaps solved this problem. Once CDS on low-grade subprime was sufficiently liquid, synthetic borrowers could stand in the place of subprime borrowers, paying when the borrowers paid, and winning a reward when real borrowers could pay no longer. The buyers of CDS were synthetic borrowers that made synthetic CDOs possible. With CDS, supply was no longer bound by earthly constraints on the number of subprime borrowers, but could ascend skyward, as long as there were short sellers willing to be synthetic borrowers and insurers who, tempted by fees, would volunteer to be synthetic lenders, standing atop their own edifice of risks, oblivious to its precariousness. Institution after institution was bled dry. Yet economists and central bankers applauded the wondrous innovations, seeing increased liquidity and more efficient loan intermedation, ignoring the unhealthy condition of the industry. The firms that had been silently drained of capital and tied together in shadowy counterparty links teetered, fell, and looked certain to perish. There was one last capital reserve to tap, U.S. taxpayers, to revive the financial system and make the innovators whole. Widespread anger turned into sullen resignation as the public realized its opposition to the looting was futile. The authorities now claim they will find ways to solve the problems of opacity, leverage, and moral hazard. But opacity, leverage, and moral hazard are not accidental byproducts of otherwise salutary innovations; they are the direct intent of the innovations. No one at the major capital markets firms was celebrated for creating markets to connect borrowers and savers transparently and with low risk. After all, efficient markets produce minimal profits. They were instead rewarded for making sure no one, the regulators, the press, the community at large, could see and understand what they were doing. Magnetar and its imitators made unbelievable profits by finding a nexus of spectacular leverage, eager demand, and camouflaged risks. Whether you like the results or not, their novel use of an arcane instrument was exceptionally clever. If the world had been spared their cunning, the insanity of 2006-2007 would have been less extreme and the unwinding milder. But the hedge funds were not the only ones who fed this strategy: the other institutions who carried out the same correlation trade strategy and European bank staff padding their pockets with negative basis trades are just as culpable. Viewing the underlying problem as one of bubbles misses the true dynamic. When borrowed funds to pump up asset values, the unwind damages financial intermediaries, and that has far more serious repercussions than the loss of paper wealth alone. Leverage offers a strategic point at which regulators can intervene. Regulators can tackle debt levels surgically by barring certain types of instruments and practices. But this effort can take place only if authorities do not cede control of the financial system to the inmates. Unfortunately, to a large degree, that has already happened. The reason that so many words continue to be spilled on the crisis with so little fresh insight is that most pundits are unwilling to describe the degree to which it enabled the bankers to cement their control, and how much that sorry fact is costing the rest of us. _____ * It’s almost quaint to compare the scale of interventions in global-financial crisis to that of our last banking blowup, the savings & loan crisis, in which Congress was really unhappy to for having to advance $50 billion in working capital to fund the balance sheet of the Resolution Trust Corporation (oh, and Alan Greenspan engineered a really steep yield curve for a few years to help banks rebuild their balance sheets).

90% Silver Sale! Any QTY Only $1.49 Over Spot! Posted: 16 Sep 2013 08:16 AM PDT Doc’s Deal Of The Day INDUSTRY LOW PRICE OF $1.49 OVER SPOT- OUR LOWEST PRICE ON 90% IN OVER A YEAR! Click or Call 614.300.1094 NOW!! The post 90% Silver Sale! Any QTY Only $1.49 Over Spot! appeared first on Silver Doctors. Check out these similar articles: Cyber Monday Silver Sale: 10oz NTR Bars As Low As 79 Cents Over Spot!! 90% Silver Sale As Low As 99 Cents Over Spot!! SD Bullion FLASH SALE 100 oz Johnson Matheny/Engelhard Bars As LOW As 49 Cents Over Spot

Gold and Silver Price Manipulation Ends With the Death of Fiat Posted: 16 Sep 2013 08:00 AM PDT The silver and gold market has been rife with speculation about ongoing price manipulation. Most investors are now familiar with this concept, and even the mainstream has admitted that undue market influence has occurred. Nevertheless, ending this unfortunate fact of life for precious metal investors and allowing prices to rise to their fair value would [...] The post Gold and Silver Price Manipulation Ends With the Death of Fiat appeared first on Silver Doctors. Check out these similar articles: Jim Sinclair: We Are Witnessing the Death Throes of ALL Fiat Currencies Banking Elite Continuing Policies Ensuring Devaluation of Fiat Currencies & Price Inflation in Commodities Such as Gold, Silver, Food, & Oil Precious Metals in a World that is Flat, Fungible and Fiat

Choice For Fed Chairman Posted: 16 Sep 2013 07:45 AM PDT Tweet I mean seriously; just how much PM-positive news can emerge in one week?  Frankly, we've had a lifetime's worth – and the REAL fireworks haven't even started!  To wit, new Fed Chairman frontrunner Larry Summers – who not only "wrote the book" on gold suppression, but was somehow considered relatively hawkish (he's not); suddenly DROPPED OUT of the race for no particular reason.  Amazingly, he simply left Obama a "Dear John" letter; and off he's gone into the sunset – to spend the funds he either misappropriated or otherwise dishonestly learned.  Perhaps it's due to these allegations of impropriety – which I have no doubt of; perhaps, he was deemed "not dovish enough" by his banking masters; perhaps, because by his own description, the confirmation process would be "acrimonious"; or maybe, just maybe (although I highly doubt it), he wisely decided to avoid the Titanic's helm.  Either way, yet again the MSM and financial "pundits" were DEAD WRONG in their prognostications; as they have been about the economy, the Fed's mythical "exit strategy," and EVERYTHING they have ever forecast – generally speaking, under the moniker of misguided optimism. Meanwhile, Obama's other financial dunce – "Tax Cheat Timmy" Geithner – has no desire for the job either.  And thus, I present the new, most likely candidate for the job; current Fed Vice Chairman, eternal "uber-dove," and cabal sycophant supreme – Janet Yellen.  Yes, the same Janet Yellen that recently disclosed her moronic belief that fighting "unemployment" was as important – or more so – than controlling inflation!  Summers may well be one of the most crooked, evil politicians in U.S. history; but honestly, Yellen is an even worse choice for Fed Chairman due to her non-wavering commitment to MONEY PRINTING.  And thus, yet again, the government will make the choice that's "WORST FOR AMERICA, BUT THE BEST FOR PRECIOUS METALS."Similar Posts: Private Musings of a Failed Fed Chairman The Bull Market Is NOT Dead America’s “Leaders” In Action

Gold bulls cut wagers as Goldman sees more losses Posted: 16 Sep 2013 07:13 AM PDT Speculators got less bullish on gold, selling long contracts at the fastest pace this year as prices fell the most in almost three months on prospects for less central-bank stimulus. Goldman Sachs Group Inc. said the retreat has further to go.

Could You Imagine This 25 Years Ago? Posted: 16 Sep 2013 07:09 AM PDT Tweet I have several things I’d like to talk about today but first something needs to be said about Harry Reid.  On Friday, majority leader of the Senate Harry Reid made comments on the floor regarding Tea Party members.  Specifically he said: We're diverted totally from what this bill is about. Why? Because the anarchists have taken over. They've taken over the House and now they've taken over the Senate. People who don't believe in government — and that's what the Tea Party is all about — are winning, and that's a shame. -The Hill, September 12, 2013 “Anarchists?”  “People who don’t believe in government?” Really?  The way I see it, the Tea Party members are the ONLY ones left in the government who actually believe in what created the government in the first place, the Constitution.  Our current “rulers” have gone so far off the rail that they cannot even see it anymore.  Think about what Nancy Pelosi said regarding the Obamacare vote with less than 12 hours for anyone to even read it…she said, “We have to pass it…to see what’s in it!”  Unfortunately, anyone now who is a strict Constitutionalist is also branded as some type of nut job terrorist.  Anyone who loves this country and what it once stood for is considered a threat to the current government.  How obvious is it that these people who “swear their allegiance” to defend the Constitution either crossed their fingers when they “swore to God” or are just plain delusional.  Think back just 25 years ago in 1988 while Ronald Reagan was still president, the above words spoken on the House or Senate floor would have been enough to impeach for treason against The Constitution, now it’s OK for the majority leader to say it …and sadly mean it. OK enough “rant” over. This week we get to hear from the “nonfederal” reserve and whether or not they will “taper.”  Before going any further, can you imagine the same 25 years ago after the 1987 crash Alan Greenspan was talking about cutting back on $85 billion per month of pure “monetization?”  Again, it would have been heresy.  To put the current $85 billion into perspective, the Fed is “buying” this many Treasuries and mortgage securities each month…with “equity” of only $60 billion…EVERY month!  Oh, and did I mention that the Fed has already lost over $300 billion (or their capital 5 times over) just since May of this year.  Will they “taper?”  Maybe $10 billion or so.  Does it matter?  Of course not.  THE only thing that matters is being able to open the markets each day which is getting harder and harder as we go further and further down the rabbit hole and away from reality. Friday was a very interesting day indeed in the precious metals markets.  We got smashed on Thursday for over a dollar in silver and more than $40 in gold…it is important to note that open interest in gold went up nearly 5,000 contracts so the action was not the longs selling to close, it was shorts selling to open…or should I say “selling to make price.”  There were 2 pieces of news that floated around Friday.  First, there was an unconfirmed report that GLD is no longer delivering gold to their institutional clients, it is said that they are refusing delivery.  If this turns out to be true, coupled with the declining COMEX vaults then fireworks are just around the corner.  Hopefully we can get some sort of verification this week one way or the other. The other big news was in the silver market, I had heard rumors of this a year ago and it sort of dropped off of my radar screen though it should not have.  We are now at the end of 5 years of the CFTC “supposedly” investigating the silver market smash of 2008.  Many are worried that the statute of limitations will run out and the “perpetrators” will get off Scot free.  I say not to worry for the CFTC can also look into the Spring 2011 price fixing (smashing) and again this year in April…heck, they could pull the “time and sales” tickets for this past Thursday and put some traders in jail and some firms out of business with their eyes closed. The metals did turn around and go positive for the day from some very deep losses on Friday after Andrew Maguire related that he led 2 JP Morgan whistleblowers to the CFTC a year ago with information (proof?) that JP Morgan does in fact manipulate the precious metals markets.  These two traders have hired a law firm that specializes in representing whistleblowers.  The CFTC has had this information for a year…they have been “investigating” for 5 years and have had several “in your face” manipulations along the way to see first-hand…will they do anything about it?  Below is a chart that shows the timing of the news and the reaction in the pits… maybe something will come from this?  One can hope I guess. I have written about this investigation several times before and I still am of the same opinion.  The CFTC CANNOT in any way come to a conclusion.  Think about it, if they say that there is no manipulation they will be laughed at…and especially now since they were reportedly handed even more proof.  The CFTC cannot contradict the obvious and were they to say that the market is “clean” (and then followed by the inevitable defaults coming by the paper markets) they will be on the hook.  When I say “on the hook,” I am saying that there will be outrage because they made a ruling that nothing was wrong and will then be spotlighted and cornered when it turns out that in fact there is. On the other hand, if the CFTC were to “discover” that there is manipulation and actually “named names” they have another problem(s).  First off you have the problem of “whom” and what would the punishment be and secondly you would see a mad rush into the metals with orders FOR DELIVERY.  Please understand that $3,000 gold and $100 silver means that oil should be $200 per barrel, PE ratios in the equity markets are far lower and interest rates are far higher.  This combination will break everything.  It will break markets, market participants, derivatives and of course confidence.  There is no way that the CFTC can find “manipulation” unless their goal is to pull the plug on everything. In my opinion there is a far better chance that they would announce “no manipulation” but it seems that their strategy of “running the clock out” is what we will see.  Yes, Bart Chilton will probably make some sort of noise or announcement which may or may not be followed by his resignation or termination but “no announcement” seems better than any other option.  They know what has happened, they know what is happening and surely they know what will happen.  As I wrote earlier in this piece, “Can you imagine anything like this 25 years ago?” I wrote the above and planned to finish there but I have two more notes to make.  Some people say there is no manipulation (naïve), others say it is JP Morgan and the banks, others say it is not the banks it is the HFT traders.  I say why not just use common sense, “who benefits the most?”  Pretty simple.  Also, the CFTC, SEC, NYSE or any other regulatory agency could simply pull the “time and sales” from last Thursday’s massacre and know within a day’s time who did what and when.  Then match the perpetrators up with what happened this past April…then again match it up with May of 2011…and guess what?  These will all match up with 2008.  So simple!  “TIME AND SALES” tells all!  Nothing else is needed, nothing else is necessary.  OK, you want to go whole nine yards?  Have the “sellers” show that their sales were hedges and that they were “long” somewhere else…ANYWHERE else.  They can’t because the metal simply does not exist above ground for these short positions to even remotely be hedges.  This exercise could be done, prosecuted and put to bed in very short order and performed by minimum wage clerks with 8th grade educations…but it won’t…because it can’t!Similar Posts: Could Cyprus Happen Here? You Bet it Can – And Will! No One Could Have Seen it Coming A Specific Event Will Take Place In America's Near Future Which Could Bring Our Country and Our Way of Life to a Grinding Halt

Indian temples to Indian central bank on gold inventory information request: “POKE-IT” Posted: 16 Sep 2013 06:53 AM PDT Earlier today we reported on the desperate move by the Indian central bank to try and manipulate the demand for gold lower (and get its hands on some much needed gold), by trying to tap into the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Poll: Americans Oppose Raising the Debt Ceiling Even If U.S. Defaults and Say Government Wastes 60 Cents of Every Tax Dollar Posted: 16 Sep 2013 06:31 AM PDT With the federal government expected to hit its debt limit in mid-October, 70 percent of Americans oppose raising the debt ceiling, the latest Reason-Rupe poll finds. In fact, 55 percent of Americans say they do not support raising the debt ceiling even if it causes the U.S. to default on its debt... Read

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