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• 12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy
• Gold Nears Trendline Resistance
• “Sense of Calm” Keeps Gold Flat Despite Threat the US “Won’t Pay Its Bills”
• Is Crude Oil Ready for Further Growth? What Impact Could It Have on Gold?
• GoldMoney market report Week ending October 4th
• The Calm Before The Precious Metals Storm
• Yellowstone Supervolcano Alert: The Most Dangerous Volcano In America Is Roaring To Life
• Oct 7/Both sides far apart in debt ceiling debate/gold and silver rise
• The Fire Fueling Gold
• Gold weekly price chart with support and resistance price zones
• Death of the Middle Class
• Is there a US default premium being built into the gold price?
• Jim Rickards: Gold Price Could Double Overnight In US Dollar Crisis
• $100 Paper Silver Lions
• "Sense of calm" keeps the gold price flat
• Quote of the Day: The Fourth Turning Has Arrived
• The Market Gains Since The Lehman Collapse May Fall Victim To Politics; In This Case CYA Means Cover Your Assets
• Must-see: How to build a fortune, 2.2% at a time
• "Warning signs": This has not happened since the bull market began in 2009
• Thirty-six facts about the government "shutdown" the White House doesn't want you to know
• Porter Stansberry: Do this ONE THING right now... and make MUCH more money in stocks
• New Fed Alarm Over Shadow Banking
• Rise of the $100 paper silver lions
• You know that one guy who successfully signed up for Obamacare? He didn’t
• The Fed, gold & jobs
• Gold price is bound to go through the roof
• A Dangerous Game Indeed Called “Defaultornot”
• Is Crude Oil Ready for Further Growth? What Impact Could It Have on Gold?
• India ought to take up a holistic view to safeguard gold's luster, says WGC
• The Saga Of How JP Morgan/Jamie Dimon Ripped Off America With Barack Obama’s Full Endorsement
• Is the next bear market about to begin?
• Sense of calm keeps gold flat despite threat U.S. won't pay its bills
• Is the Next Bear Market about to Begin?
• Gold price starts the week up whilst sticks fall as government shutdown enters second week
• Gold’s safe-haven appeal burnished in U.S. debt standoff
• David Morgan: There Is NO Endgame!
• Do They Really Think the Entire World is that Stupid?
• Technical Trading: Gold Coils In Tight Ranges, Firm Tone Seen
• Gold ETFs Face Scary Technical Outlook
• As 2014 Glastonbury tickets go on sale prices once again RISE – Tickets prices have DOUBLED in just 10 years and FALL in terms of gold
• Gold & Silver Go Vertical
• King Canute!
• Quality over Quantity Stressed at Colorado Conferences
• Gold befuddles Bernanke as central banks’ losses at $545 billion
• All You Need to Know About Why Gold Must Rise
• Buying Silver Was The Stupidest Move I Ever Made!
• “Algerians Are Investing In Property, Gold and Foreign Currencies”
• "Sense of Calm" Keeps Gold Flat Despite Threat the US "Wont Pay Its Bills"
• US Govt shutdown has limited impact on Gold: Barclays
• Gold slightly bullish, better to be cautiously optimistic: Barclays

12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy Posted: 07 Oct 2013 05:46 PM PDT A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before.  If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations.  A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented.  And that would just be for starters.  But don't just take my word for it.  These are the things that top financial experts all over the planet are saying will happen if there is an extended U.S. debt default. Because they are so close together, the "government shutdown" and the "debt ceiling deadline" are being confused by many Americans. As I wrote about the other day, the "partial government shutdown" that we are experiencing right now is pretty much a non-event.  Yeah, some national parks are shut down and some federal workers will have their checks delayed, but it is not the end of the world.  In fact, only about 17 percent of the federal government is actually shut down at the moment.  This "shutdown" could continue for many more weeks and it would not affect the global economy too much. On the other hand, if the debt ceiling deadline (approximately October 17th) passes without an agreement that would be extremely dangerous. And if the U.S. government is eventually forced to start delaying interest payments on U.S. debt (which could potentially happen as soon as November), that would be absolutely catastrophic. Once again, just don't take my word for it.  The following are 12 very ominous warnings about what a U.S. debt default would mean for the global economy... #1 Gerald Epstein, a professor of economics at the University of Massachusetts Amherst: "If the US does default, that will make the Lehman Brothers bankruptcy look like a cakewalk" #2 Tim Bitsberger, a former Treasury official under President George W. Bush: "If we miss an interest payment, that would blow Lehman out of the water" #3 Peter Tchir, founder of New York-based TF Market Advisors: "Once the system starts to break down related to settlement and payments, then liquidity disappears, as we saw after Lehman" #4 Bill Isaac, chairman of Cincinnati-based Fifth Third Bancorp: "We can't even imagine all the things that might happen, just like Henry Paulson couldn't imagine all the bad things that might happen if he let Lehman go down" #5 Jim Grant, founder of Grant's Interest Rate Observer: "Financial markets are all confidence-based. If that confidence is shaken, you have disaster." #6 Richard Bove, VP of research at Rafferty Capital Markets: "If they seriously default on the debt, what we're really talking about is a depression" #7 Chinese vice finance minister Zhu Guangyao: "The U.S. is clearly aware of China's concerns about the financial stalemate [in Washington] and China's request for the US to ensure the safety of Chinese investments." #8 The U.S. Treasury Department: "A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse" #9 Goldman Sachs: "We estimate that the fiscal pull-back would amount to 9pc of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly" #10 Simon Johnson, former chief economist for the IMF: "It would be insane to default, but it's no longer a zero-percent probability" #11 Warren Buffett about the potential of a debt default: "It should be like nuclear bombs, basically too horrible to use" #12 Bloomberg: "Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen." A U.S. debt default could be the trigger for the "nightmare scenario" that so many people have been writing about in recent years.  In fact, it could greatly accelerate the timetable for the inevitable economic collapse that is coming.  A recent Yahoo article described some of the things that we would likely see in the event of an extended U.S. debt default... A default would upend money markets, destroy bond funds, slam the brakes on lending, cause interest rates to spiral, make our banks insolvent, and deal a blow to our foreign trading partners and creditors around the globe; all of which would throw the U.S. and the world into economic disarray. And of course stocks would crash big time.  Deutsche Bank's David Bianco believes that if the U.S. government starts missing interest payments on U.S. Treasury bonds, we could see the S&P 500 go down to 850 by the end of the year. There would be almost immediate panic among ordinary Americans as well.  In fact, it is being reported that some banks are already stuffing their ATM machines will extra cash just in case... With just 10 days left to raise the debt ceiling and congressional Republicans threatening to force the government to default on its obligations, banks are taking some dramatic steps to prepare for the economic chaos that would result should the brinkmanship continue. The Financial Times reports that one major U.S. bank has started stuffing its automatic teller machines with extra cash in preparation for a possible bank run from panicked depositors. The New York Times reports that another bank is weighing a plan to advance funds to customers who rely on Social Security and other government payments that could stop in the event of a default. Let's hope that cooler heads will prevail and that a U.S. debt default will be avoided. Unfortunately, it appears that the Democrats are absolutely determined not to be moved from their current position a single inch.  They have decided to refuse to negotiate and demand that the Republicans give them every single thing that they want. And who can really blame them for adopting that strategy?  After all, it has certainly worked in the past.  Whenever Democrats have stood united and have refused to give a single inch, the Republicans have always freaked out and caved in eventually. Will this time be any different? The funny thing is that once upon a time, Barack Obama was adamantly against any increase in the debt limit.  The following comes courtesy of Zero Hedge... But now Obama says that it is so unreasonable to be opposed to a debt limit increase that any negotiations are out of the question. So which Obama is right? If the Democrats will not negotiate, a debt default could still be avoided if the Republicans give in. And that is what they always do, right? Perhaps not this time.  Just check out what John Boehner had to say on Sunday... "I, working with my members, decided to do this in a unified way," the speaker said -- with demands to defund, delay or otherwise alter the Affordable Care Act. Boehner had expected that the Obamacare fight would come during the next vote to raise the debt ceiling, "but, you know, working with my members, they decided, let's do it now," he said. "And the fact is, this fight was going to come, one way or another. We're in the fight. We don't want to shut the government down. We've passed bills to pay the troops. We passed bills to make sure the federal employees know that they're going to be paid throughout this." "You've never seen a more dedicated group of people who are thoroughly concerned about the future of our country," he said of House Republicans. "It is time for us to stand and fight." But will the Republicans really stand and fight? In the past, betting on the intestinal fortitude of the Republican Party has been a loser every single time. So we'll see.  Boehner insists that this time is different.  Boehner insists that he is not going to fold like a 20 dollar suit this time.  In fact, when he was asked if the U.S. government was headed toward a debt default if Obama continued to refuse to negotiate, Boehner made the following statement... "That's the path we're on." The mainstream media has certainly been placing most of the blame at the feet of the Republicans, but at least the U.S. House of Representatives has been trying to get an agreement reached.  The House has voted 26 times since the Senate last voted.  Harry Reid has essentially shut the Senate down until the Republicans fold and give the Democrats exactly what they want. The funny thing is that this could probably be solved very easily.  If the Democrats agreed to a one year delay to the individual mandate, the Republicans would probably jump at it.  And because of epic technical failures, hardly anyone has been able to get signed up for Obamacare anyway.  So a one year delay would give the Obama administration time to get their act together. Unfortunately, the Democrats seem absolutely obsessed with the idea that they will not give the Republicans one single inch.  They seem to believe that this will be to their political benefit. But this is a very dangerous game that they are playing.  The U.S. government must roll over 441 billion dollars of short-term debt between October 18th and November 15th. If a debt ceiling increase is not in place by that time, it will send interest rates soaring.  Borrowing costs for state and local governments, corporations, and ordinary Americans will go through the roof and economic activity will be hit really hard. And as detailed above, we could potentially be looking at a financial crash that would make 2008 look like a Sunday picnic. So let us hope for a political solution soon.  That will at least kick the can down the road for a little bit longer. If a debt default were to happen before the end of this year, that would bring a tremendous amount of future economic pain into the here and now, and the consequences would likely be far greater than any of us could possibly imagine.

Gold Nears Trendline Resistance Posted: 07 Oct 2013 03:59 PM PDT

“Sense of Calm” Keeps Gold Flat Despite Threat the US “Won’t Pay Its Bills” Posted: 07 Oct 2013 03:58 PM PDT “Sense of Calm” Keeps Gold Flat Despite Threat the US “Won’t Pay Its Bills”   PRECIOUS METAL prices were unchanged in what dealers called “thin, quiet” Asian and London trade Monday morning, despite increasing fears the US government will fail to meet its obligations in only 10 days’ time. “Congress is playing with fire,” Treasury secretary Jack Lew told CNN on Sunday. Because “if the United States government, for the first time in its history, chooses not to pay its bills on time, we will be in default. “There is no option that prevents [it] if we don’t have enough cash to pay our bills.” Analysts were left without two key reports Friday, as the US government shutdown delayed both the monthly Non-Farm Payrolls jobs report, and the weekly Commitment of Traders data from the futures and options market. Comparing the current moves in gold prices with previous US furloughs, analysts at both Barclays and Goldman Sachs agree this lackluster action “is not surprising” given how gold responded to the 17 previous occasions since 1976. Falling 1.4% in the week before this current shutdown began, the gold price had averaged a drop of 0.4% going into the 17 previous events, says Barclays. “Price reaction before, during and even after,” says Goldman, “has [always] been muted, even in shutdowns that have extended to three weeks’ duration.” But looking further ahead, “Credit markets could freeze, the value of the Dollar could plummet, US interest rates could skyrocket,” Lew’s Treasury Department warned on Friday, pointing to October 17th as the likely deadline for a new budget plan.   Gold held at $1313 per ounce Monday however, and silver was also unchanged, moving in a 35 cent range around $21.75 per ounce while other industrial commodities slipped even as the US Dollar fell. Global stock markets entered their third week of declines, but held only 2% beneath mid-September’s 5-year high on the MSCI World Index. “It is clear,” says a note from Citigroup analysts, “that investors are not very worried…and do not expect any debt ceiling rupture to last long.” “It is extremely unlikely,” reckons ratings agency Moody’s CEO Raymond McDaniel, speaking to CNBC, “that the Treasury is not going to continue to pay on those securities.   “[It] feels a lot like we’ve seen this movie before,” McDaniel said, pointing to the 2011 debt ceiling row which saw gold investing hit all-time record-high prices above $1900 per ounce. “Ironically, because we have had this experience in the recent past [it] gives people more of a sense of calm than perhaps they should have.” “The lackluster performance of gold returns,” says Deutsche Bank, “may reflect the relatively sanguine approach of financial markets amidst a US government shutdown and concerns over the budget ceiling. “Indeed of the several measures of risk we track, there has been little escalation in risk aversion. Unless this changes we would expect gold to remain under pressure.” Over in Asia today, Monday saw world No.1 gold consumer China celebrate another national holiday as its Golden Week drew to a close. Officials in former world No.1 India meantime released a tonne of gold bullion from Mumbai airport, where it had been trapped by confusion over new anti-import rules aimed at reducing the country’s large trade deficit.   Adrian Ash BullionVault   Gold price chart, no delay | Buy gold online   Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can fully allocated bullion already vaulted in your choice of London, New York, Singapore, Toronto or Zurich for just 0.5% commission.   (c) BullionVault 2013   Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Is Crude Oil Ready for Further Growth? What Impact Could It Have on Gold? Posted: 07 Oct 2013 03:53 PM PDT Based on the October 7th, 2013 Oil Investment Update   One of the main events of recent days was the first U.S. government shutdown in 17 years. Light crude dropped to a new monthly low at $101.05 on concerns that this event would reduce demand for black gold in the world’s largest oil consumer market. In the previous week, the yellow metal also declined and dropped below $1,300 an ounce. Despite this declines, on Wednesday, both commodities rebounded sharply supported by a weaker U.S. dollar as commodities priced in the greenback became less expensive for holders of other currencies. Additionally, in the second half of the previous week we saw similar price action in both cases.   Taking the above into account, investors are probably wondering: what could happen if the recent positive divergences between both commodities remain in place? Can we find any guidance in the charts? Let's take a look at the charts below and try to find answer to this question. We'll start with the daily chart of crude oil (charts courtesy by http://stockcharts.com). On the above chart, we see that the situation improved slightly in the previous week. Last Monday, crude oil dropped to a new monthly low of $101.05 per barrel. With this move the price of crude oil declined not only below the August low, but also below the 38.2% Fibonacci retracement level. Despite this drop, we saw a pullback, which erased most of the losses late in the day.   In the following days, we saw further improvements as oil bulls managed to hold this level. This positive event triggered another pullback, which pushed light crude to the previously-broken rising medium-term support line on Wednesday. Additionally, the price of light crude came back above the 38.2% Fibonacci retracement level and the breakdown below this level was invalidated. Although crude oil closed Wednesday almost at the rising medium-term support/resistance line, the buyers didn't have enough strength to break above this resistance until the end of the previous week.   Looking at the above chart, we see that crude oil remains in the declining trend channel. Therefore, if we see a breakout above the medium-term support/resistance line, we could see a move up to the declining short-term resistance line based on the Aug. 28 and Sept. 19 highs – currently close to the $106.4 level (marked with blue).   Please note that the nearest support is the September low and the 38.2% Fibonacci retracement level. If it is broken, the next one support zone will be slightly below $100 per barrel where the 50% Fibonacci retracement level intersects with the June high.   Once we know the current short-term outlook for crude oil, let's take a closer look at the chart below and check the link between crude oil and gold. Has it changed since our previous essay on oil and gold was published? Let's examine the daily chart. Looking at the above chart, we see similar price action in both commodities at the beginning of the previous week. They declined on Monday, however, in the case of crude oil, the buyers managed to hold the September low in the following days, which resulted in a sharp pullback on Wednesday. Meanwhile, gold declined and reached its new lowest level since the August top. Despite this drop, the rest of the week looked similar for both commodities.   Summing up, looking at the relationship between crude oil and gold, we notice similar price action in both commodities in the previous week. Therefore, if this relationship remains in place, we could see some strength on a short-term basis in case of the yellow metal and crude oil. However, we should still keep in mind that the recent decline in crude oil is just slightly bigger than the previous ones and light crude remains above the 38.2% Fibonacci retracement level, which forms strong support. From this point of view, the uptrend is not threatened at the moment. At the same time, the downtrend in gold remains in place and the yellow metal remains below the declining resistance line, which has already successfully stopped buyers several times.   Thank you.   Nadia Simmons Sunshine Profits' Crude Oil Expert Oil Investment Updates Oil Trading Alerts * * * * * Disclaimer   All essays, research and information found above represent analyses and opinions of Nadia Simmons and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Nadia Simmons and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Nadia Simmons is not a Registered Securities Advisor. By reading Nadia Simmons' reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Nadia Simmons, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

GoldMoney market report Week ending October 4th Posted: 07 Oct 2013 03:51 PM PDT ___________________________________________________________________ This has been a quieter week for trading activity by GoldMoney customers compared with the previous 2 weeks although still above average 3 month trading levels.  In aggregate USD terms GoldMoney customers sold gold and bought silver in a 2:1 ratio although institutional customers were net buyers of both metals.  During the week GoldMoney customers continued to increase their holdings of precious metal stored in Singapore in line with the ongoing 6 month trend which comprises new metal purchases as well as relocation of metal to Singapore by customers who had previously stored their metal in other countries. The US budgetary impasse dominated traders’ and investors' minds worldwide, but it was the gold market reaction to it which surprised many.  On Tuesday, the morning after the US Government suspended non-essential activities due to the lack of a budget for the new fiscal year, the price of gold fell $50, taking it to below the $1,300 level to as low as $1,280. At the same time the dollar weakened, which in the past has driven money into gold as a safe haven. The following day the fall was almost completely reversed and silver even ended up with a small net gain over the two days. GoldMoney's Head of Research, Alasdair Macleod said there is no convincing explanation for the initial price reaction: 'We can suggest technically-driven robots were responsible, or that with quarter-end book-squaring over, new bear positions were opened at the earliest opportunity. We can also note that Tuesday, the day the Commitment of Traders' report is made up, is often a bad day for precious metals. Or there is another alternative reason: the Chinese are on holiday this week so their buyers are absent. Perhaps all these factors worked together. 'The important point to note is that while markets generally were turbulent precious metals have broadly held their ground. And whatever games are played in the paper markets, underlying physical demand from Asian markets remains strong. Look for example at Chinese weekly demand, shown in the chart of Shanghai Gold Exchange deliveries, through which all officially imported bullion is delivered. The weekly average delivery this year has been 43.87 tonnes, matching global mine supply ex-China which averages 44 tonnes per week. Add in Hong Kong, and the rest of the world has to sell down its gold holdings just to supply China's private sector demand. This does not include unrecorded demand from the mega-rich buying directly in foreign markets. Furthermore, this week China announced it would liberate the market further, granting more dealers licences to import and export gold, leading to yet more potential demand.' Ends NOTES TO EDITOR For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day. Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar. GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey’s anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers’ assets with independent audit reporting every 3 months by two leading audit firms. GoldMoney has its headquarters in Jersey and also has offices in London and Hong Kong.  It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink’s, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Visit www.goldmoney.com.

The Calm Before The Precious Metals Storm Posted: 07 Oct 2013 03:45 PM PDT The world is now passing out of the EYE OF THE STORM and back into the FINANCIAL TYPHOON. Even though the Fed and Central Banks have been able to manipulate, control and divert interest away from the precious metals presently, the rear of the PRECIOUS METAL HURRICANE is still approaching.   From the SRSRocco Report: [...] The post The Calm Before The Precious Metals Storm appeared first on Silver Doctors. Check out these similar articles: Precious Metals 'Perfect Storm' As MSGM Risks Align Olympic Calm Before Coming Financial Storm Perth Mint’s Bron Suchecki: Expect Precious Metals Shortages During The Next Crisis

Yellowstone Supervolcano Alert: The Most Dangerous Volcano In America Is Roaring To Life Posted: 07 Oct 2013 03:30 PM PDT Right now, the ground underneath Yellowstone National Park is rising at a record rate.  In fact, it is rising at the rate of about three inches per year.  The reason why this is such a concern is because underneath the park sits the Yellowstone supervolcano – the largest volcano in North America.  Scientists tell us [...] The post Yellowstone Supervolcano Alert: The Most Dangerous Volcano In America Is Roaring To Life appeared first on Silver Doctors. Check out these similar articles: Iceland’s Grimsvotn Volcano Erupts Genetic Roulette: GMO’s Gambling With the Genetic Code of Your Food & Your Life Gerald Celente: America Has Turned into Pre-WW II Germany

Oct 7/Both sides far apart in debt ceiling debate/gold and silver rise Posted: 07 Oct 2013 03:17 PM PDT

The Fire Fueling Gold Posted: 07 Oct 2013 03:10 PM PDT Gold took quite a beating in September, bucking its seasonal average monthly return of 2.3 percent. The political battle between President Barack Obama and Congress, China's Golden Week and India's gold import restrictions likely weighed on the metal. September's correction only adds to the negative sentiment toward the precious metal. The assumption from many market pundits is that gold is no longer attractive as an investment. With rising rates and continuing low inflation, U.S. investors believe they have a solid case for selling their holdings. However, this could be a premature assessment, causing these bears to potentially lose out on a lucrative position. Allow me to use an ice cube to explain. One of the strongest drivers of the Fear Trade is real interest rates. Whenever a country has negative-to-low real rates of return, which means the inflationary rate (CPI) is greater than the current interest rate, gold tends

Gold weekly price chart with support and resistance price zones Posted: 07 Oct 2013 03:06 PM PDT Commodity Trader

Death of the Middle Class Posted: 07 Oct 2013 03:00 PM PDT Tweet It's an epically morbid Monday morning – as the scent of government FAILURE is detected the world round.  Whether it's the Russians "temporarily" confiscating pensions; the Reserve Bank of India lowering rates despite the recent run on the Rupee; or the abysmal U.S. retail outlook – as highlighted by this morning's HORRIBLE consumer spending poll – the stench of fiat PONZI SCHEMES are as pungent as they are pervasive.  As to the global "failure ringleader" – i.e., the naked Emperor known as America; it's pending "debt ceiling" debate clouds around the skyline with fog as dense as night.  No matter how one spins it, this bankrupt nation owes at least $220 trillion – and counting.  Sooner or later, it will be called out by global financial markets; it's just a matter of time… As for today's piece, it has been stewing inside me for months; and thankfully, another great Michael Snyder compilation coaxed it out.  Titled "30 Mind-blowing Statistics about Americans under Age 30," it summarizes just how low the REAL American economy has sunk; and consequently, why not only will QE NEVER be tapered, but the already monstrous U.S. government will only grow larger.  In a nutshell, younger Americans – as Gerald Celente calls them, "Generation Effed" – suffer not only from an epic, depression-like dearth of quality jobs, but have been sentenced to bear the consequences of decades of political and economic sin.  In other words, they have been "sold down the river" to fund above average lifestyles of the Baby Boomers; catalyzed, of course, by America reneging on the gold standard in 1971. To put you in the proper "mood" to experience this article, I BEG you to watch the following short by my good friend Daniel at Future Money Trends, titled "The Destruction of America’s Middle Class (in under Seven Minutes)."  The end speaks of a "game plan" to survive; but for most, this is not an option.  The vast majority have been sentenced to become feudal slaves in a dying economic system – with ZERO chance of redemption.  After all, with 76% of Americans living paycheck to paycheck – and 46% having less than $800 in savings – what can they do other than "forage" for survival.  Fortunately, those reading the Miles Franklin Blog have options available to them – most of all, to PROTECT their net worth by trading dying scrip, no matter what's written on it – for REAL MONEY. Think about it.  The nation's largest private employer – Wal-Mart – is a discount retailer no longer hiring full-time workers due to the soaring costs of benefits.  You can thank Obamacare – which is decidedly NOT going away – for pushing them over the edge in this regard.  However, Obamacare is but one of many competitive factors enabling Wal-Mart the luxury of turning its unskilled labor force into a cadre of helpless temps.  For the record, the second largest private employer in America is Kelly Services; i.e., a TEMP AGENCY.  And then you have the largest public employer, the U.S. government; which PRINTS MONEY to pay its nearly three million unproductive workers.  Let alone, the other 20 million state and local government workers; cumulatively, producing nearly ZERO GDP for a host of bankrupt municipalities.  As for the next wave of American worker drones, it's become quite clear college is but a scam to enrich universities producing NOTHING but worthless "degrees" and exploding, un dischargeable debts.  Cumulatively, the amount Americans have gone into "hock" since the GLOBAL financial system permanently broke in 2008 is unfathomable – with only one direction to go; MUCH, MUCH HIGHER… FYI, America's manufacturing base was not sent overseas entirely due to heartless, short-sighted corporate lobbying; as let's face it, it was just a matter of time before billions of Eastern Hemisphere workers took them via a vastly cheaper compensation structure.  However, American politicians, bankers, and industrialists combined to "sell the nation's soul" to China in record time; leaving the nation's workforce with no way to prepare. Consequently, the majority of Americans have become either "haves" or "have-nots"; with the disparity dramatically widening since the fake, MONEY PRINTING-fueled economic boom (thanks, "Sir Alan") peaked at the turn of the century.  The graph below – of labor's share of corporate profits – is yet another signpost of the DEATH OF THE MIDDLE CLASS; as is the 35-year low in the U.S. Labor Participation Rate.  As for the former, note the "twin peaks" in the years 2000 and 2008.  Coincidence?  I think not! Driving home the point with a BOLD-FACED exclamation point is the graph below; telling the sad tale of the American caste system better than any other imaginable.  Since the turn of the century, the "95%" have seen exploding wage growth, whilst the rest have barely struggled to stay positive; with even the best jobs failing to keep up with inflation.  However, since the aforementioned systemic break in 2008, the situation has dramatically worsened; as incredibly, the top twentieth of workers have experienced RECORD wage growth, whist the bottom 95% have seen flat to declining wages. And oh yeah, REAL inflation has hovered around 8%-10% annually through this entire period, further impoverishing the vast majority of Americans.  Thus, does it surprise you that more than half of all Americans require entitlement payments; including nearly 50 million on Food Stamps and 11 million on disability? Why am I focusing on this sad turn of events in what was very recently the world's most affluent nation?  Because it will hopefully shock you into realizing America have become a "DEPENDENCY NATION" that CANNOT be fixed.  Like the fiat currency system itself, America's big government – not to mention, those of much of the Western world – have become Ponzi Schemes that CANNOT be reduced under any circumstances.  Government jobs CANNOT be reduced, and Federal Reserve "QE" CANNOT be tapered; and thus, both the scope and authoritarianism of existing regimes are destined to expand until they collapse of their own weight. The collapse of the Dollar, Euro, Yen, and ALL fiat currencies will only be expedited by each unit printed and spent; and inevitably, gold and silver will reclaim their roles as the "once and future kings" of money.  When this occurs, either you will have "made the trade" to Precious Metals – enabling you and yours to survive and thrive; or alternatively, will become part of the 95% described above – rapidly morphing into 99% of America's increasingly destitute society.Similar Posts: Record Highs are a Real Possibility in the Future Gold Takes Off When Interest Rates Rise The Economy Is Dying

Is there a US default premium being built into the gold price? Posted: 07 Oct 2013 03:00 PM PDT If a compromise is reached, will the removal of this political 'soapie' lower gold prices in the short-term? asks Julian Phillips.

Jim Rickards: Gold Price Could Double Overnight In US Dollar Crisis Posted: 07 Oct 2013 02:53 PM PDT Before proceeding, please be adviced that the statement in the title is not a forecast nor an expectation. The potential for the gold price to double overnight is real and existing, which is not the same as sure. In a major US dollar devaluation crisis, which would occur if the US would fail to raise the debt ceiling on Thursday October 17th, there should be a significant impact on the gold price. Jim Rickards wrote about this in his book 'Currency Wars: The Making of the Next Global Crisis' in which he “envisages a series of 'black swan' events that trigger a loss of confidence in the US dollar precipitating a rush to get out of the greenback.” In such a scenario, the market would question the Fed's staying power, which is the most fundamental aspect of the current monetary system. A dollar collapse would ensue and gold could double in price overnight. The following comes from Arabianmoney: The US President is then left with no alternative but to take charge under the 1977 International Emergency Economic Powers Act. He nationalizes all gold held on US soil and suspends bond trading to halt the dollar's fall. A bipartisan commission is appointed with 30 days to sort out what to do next. Basically the US dollar has to be reissued and reset to a new value based on a much higher price of gold. If this all sounds far-fetched then it is. But so was the subprime mortgage crisis before it actually struck and yet it happened. The unsinkable can sink, and so could the US dollar, just as HSBC was the biggest loser in the subprime crisis (although the bank did not sink because its compartments held and it managed to right itself without a government bailout). Other currencies in over-indebted economies have suffered this fate in the past. However, as Jim Rickards points out in his book the US still has a final card to play in the global currency wars as it has 57 per cent of the world's gold reserves within its boundaries and so would command any new global monetary system as it did the old. To that extent it would not be different this time around. But the gold price would be reset permanently higher, and $7,500-10,000 an ounce in old dollars is Mr. Rickards best estimate.

$100 Paper Silver Lions Posted: 07 Oct 2013 02:45 PM PDT $100 Silver and The Dirty Secret of Silver Monetary Demand. Long term precious metals investors have endured two major events where massive (induced) sell-off’s resulted in a scramble to off-load the paper silver equivalents. The fall from $20 to nearly $8 resulted in near shortage. The more recent fall from $49 triggered unprecedented demand and [...] The post $100 Paper Silver Lions appeared first on Silver Doctors. Check out these similar articles: Paper, Rock, Silver Q&A With The Doc- How Can the Cartel Take Down the Price of Silver Using Paper? Eric Sprott: "Paper Markets Are a Joke. Prepare for Bullion Prices to go Supernova

"Sense of calm" keeps the gold price flat Posted: 07 Oct 2013 02:37 PM PDT Prices were unchanged in what dealers called "thin, quiet" trade on Monday, despite increasing fears the US government will fail to meet its obligations in only 10 days' time.

Quote of the Day: The Fourth Turning Has Arrived Posted: 07 Oct 2013 02:01 PM PDT Submitted by Michael Krieger of Liberty Blitzkrieg  An impasse over the federal budget reaches a stalemate. The president and Congress both refuse to back down, triggering a near-total government shutdown. The president declares emergency powers. Congress rescinds his authority. Dollar and bond prices plummet. The president threatens to stop Social Security checks. Congress refuses to raise the debt ceiling. Default looms. Wall Street panics. - From The Fourth Turning by William Strauss and Neil Howe published in 1997 Read more here.

The Market Gains Since The Lehman Collapse May Fall Victim To Politics; In This Case CYA Means Cover Your Assets Posted: 07 Oct 2013 01:48 PM PDT Bloomberg ran an article recently making the point that a debt default makes the Lehman failure look trivial. I think it is right. The S&P 500 double inverse ETF (SDS) may be worth considering. The stand off over the debt ceiling is similar to the cold war build up of nuclear weapons. Each side knows that the use of nuclear weapons will have horrible consequences yet each feels it necessary to have the arsenal as a "deterrent" to the other side using them. Neither side believes the other side will ever use them, but still sees the need. In the Cuban Missile Crisis incident, Kennedy came close and the Russians blinked. Kennedy understood how important it was to stem the proliferation of nuclear weapons so close to the mainland U.S. and the Russians understood he was not going to back down. It is not clear what would have happened

Must-see: How to build a fortune, 2.2% at a time Posted: 07 Oct 2013 01:19 PM PDT From Amber Lee Mason and Brian Hunt in DailyWealth Trader:   Our top trading strategies are making readers REAL money...   ... We've been able to generate safe, double-digit returns with our "trading for income" strategy of selling covered calls and naked puts.   These trades are consistently bringing in hundreds of dollars... thousands of dollars... even tens of thousands of dollars per month for our readers.   For example, we just received this note from reader T.G.:   Wanted to weigh in on DailyWealth Trader. The education I've received on put-selling is phenomenal... I've been able to amass quite a track record of success. For instance:   Year 1 (June 2012 to May 2013), I netted $17,500 on a cash position of $50,000.   Year 2 (June 2013 to Jul 2013 – August is still in play) I have so far netted $4,300 with another $3,500 for August due to expire next week. This is on a cash position that is now $100,000.   This is all done in an IRA, no margin trading.   This is not a get rich quick idea. You do not hit home runs. You methodically hit single after single after single, with a few doubles thrown in there when Mr. Market is particularly generous. As T.G. notes, when we sell naked puts and covered calls, we're not "swinging for the fences."   We're looking to generate small amounts of income over and over and over. At the end of the year, those small income "hits" add up to big returns.   Take our trades on Coca-Cola (KO), for example. On August 21 and again on September 9, we recommended selling the October $39 covered calls on Coke. Including dividends, those trades generated 2.6% and 1.8% payouts. Annualized, those trades are on track to return 19.4% and 28.7%.   And you can generate another payout with Coke today.   As you can see in the chart below, shares of Coke fell 14% from mid-May through the beginning of September. And over the last three weeks, shares are up 4% off their lows. Today, you can buy shares of Coke for $38.80 and "sell to open" the November $39 calls for $0.84.   If Coke is trading below $39 come November, the return on the trade comes out to 2.2% in eight weeks, or 14.6% annualized. You'll hold onto your shares and you can continue to sell calls to collect more income.   If shares move above $39 come November, you'll sell at $39 and close the trade. Including the $0.84 premium and $0.20 in capital gains, you're collecting 2.7% on your investment. That's 18.1% annualized.   As T.G. said, trading for income isn't a "get rich quick" idea.   But if you're like many folks, you've tried "swinging for the fences" with risky strategies. That almost never works. Following conservative option strategies does work...   Crux note: DailyWealth Trader is unlike any other trading service you've likely tried before. Subscribers get regular access to the best low-risk, high-reward ideas from top S&A analysts like Dr. Steve Sjuggerud, Dr. David Eifrig, and Jeff Clark... step-by-step instructions for placing and closing these trades... and 24/7 access to one of the best trading education centers you'll find anywhere, at any price. In short, you get everything you need to become a successful and profitable trader, no matter your current level of experience... and you won't pay anywhere near what you'd expect for such a comprehensive service. Click here to learn more... and save an additional 30% today.   More on trading:   How to make 140% in gold overnight   Surprising post could explain how legendary billionaire George Soros trades stocks   This college football story could make you happier, wealthier, and more successful

"Warning signs": This has not happened since the bull market began in 2009 Posted: 07 Oct 2013 01:19 PM PDT From Gold Scents:   ... Let's look at some of the warning signs in the stock market.   ... This is the first time in five years that the advance decline line has failed to follow the market to new highs.     Read full article...   More on stocks:   Must-read: Porter Stansberry predicts a massive new bankruptcy   These simple facts show what the government shutdown really means for investors   Frank Curzio tells New York Post: Stocks are going down

Thirty-six facts about the government "shutdown" the White House doesn't want you to know Posted: 07 Oct 2013 01:19 PM PDT From The Economic Collapse:   All of this whining and crying about a "government shutdown" is a joke.   You see, there really is little reason why this "government shutdown" cannot continue indefinitely... because almost everything is still running.   Sixty-three percent of all federal workers are still working, and 85 percent of all government activities are still being funded during this "shutdown."   Yes, the Obama administration has been making a big show of taking down government websites and blocking off the World War II Memorial... but business in Washington D.C. is being conducted pretty much as usual.   It turns out that the definition of "essential personnel" has expanded so much over the years that almost everyone is considered "essential" at this point. In fact, this shutdown is such a non-event that even referring to it as a "partial government shutdown" would really be overstating what is actually happening.   The following are 36 facts which prove that almost everything is still running during this government shutdown...   #1. According to U.S. Senator Rand Paul, 85 percent of all government activities are actually being funded during this "government shutdown."   #2. Approximately 1,350,000 "essential" federal employees will continue to work during this "government shutdown"...   Read full article...   More government nonsense:   Gov't STUPIDITY: A hilarious and mind-blowing Obamacare "oversight" you have to see to believe   The U.S. Treasury just made a shocking "End of America" admission   Porter Stansberry: The only thing you really need to know about the government shutdown

Porter Stansberry: Do this ONE THING right now... and make MUCH more money in stocks Posted: 07 Oct 2013 01:19 PM PDT From Porter Stansberry in The S&A Digest:   Today, we start with a story… a parable of sorts…   I had watched the wave carefully. It was the one I'd been waiting for… the one not quite big enough to break on the outside sandbar. It only "feathered" as outgoing tide and the offshore wind held up the crest. Then, traveling again over deep water, it gained size and speed. Not many people realize that a wave's height is geometrically related to its speed. As it gets larger, it becomes much, much faster.   The outgoing tide was pulling millions of gallons of water along the near shore current. As this huge wave approached, the water was sucked out through a small opening in the inside sandbar. Swimmers call it a "rip current." I thought of it as a kind of oceanic ski lift. It pulled me out and dropped me off right where I wanted to surf.   And so, there I was… sitting on a small, fast surfboard. All of the water from the rip current converged into the ocean wave I'd been watching, doubling – sometimes even tripling – its size… all just before it rammed into the sandbar underneath my board. The water over the sandbar was around six feet deep. But the wave's energy would actually suck nearly half of that water up into the wave's rotation, leaving only about three feet of water underneath my board as I paddled into the wave.   I don't know how to explain or even measure the force of a large, ocean-going wave. I only know that if you don't catch it the right way, it can throw you with unbelievable force down onto the sandbar… or… after you're riding it… far into the air.   As the inshore current and tide added to this particular wave's power, it jacked up to about 10 feet or so… well over my head as I turned, paddled, caught the wave and stood up. This wave wasn't nearly the biggest one I'd ever caught. I didn't know it would prove to be the most dangerous wave of my entire life.   If you'd asked me why my parents told me not to go surfing that morning, almost exactly 25 years ago today, I would have said it was because of the sharks. New Smyrna Beach (NSB) in Florida is the shark-bite capital of the world. At this point, I'd already been bitten by a shark once. A few years later, I would be attacked again, in almost the exact same spot. The sharks common to the area – spinner and sand sharks – are small, usually less than six feet long. Their bites aren't serious, more like a dog bite than anything else. They won't kill you.   If you'd asked my parents why they didn't want me to go surfing, they would have said they didn't want me out there alone at dawn. They didn't want me to drown. But that thought never entered my mind. I was surfing on the beach where I'd grown up. My family's cottage sat in the dunes less than 500 yards from where I'd entered the water. I'd been swimming and surfing here nearly every day of every summer since I'd been born. I was also a state champion water polo player. I didn't fear anything in the water – not even sharks. At 15 years old, I had the strength and the endurance of a grown man… but the wisdom of a child. Death never entered my mind. Ever.   The board I was surfing on was made from a piece of wood (a "stringer") running vertically through the board, from top to bottom. Glued to either side of the stringer was specialized foam – known as Clark foam. The stringer and the foam together made the core of the board and gave it its shape, which was about four inches thick, about two feet across, and six feet, four inches long. To give it strength, the core was "glassed" in several layers of clear, strong fiberglass.   On the bottom of the board, at the rear, were three "skegs" – the fins that allowed the board to "grip" into the face of the wave and steer the board. They were made from tough plastic, with a razor-sharp leading edge. They were also encased in fiberglass, which made them very, very strong. The combination of the plastic's sharp edge and the strength of the fiberglass created a dangerous weapon. Traveling at speeds around 30 miles per hour, these fins were just like swords cutting through the water, sticking out from under my board.   I'd picked the biggest wave possible to catch that morning because I wanted to get a "barrel." That's when you catch a wave, stand up, and put your board right into the most turbulent, unpredictable, and powerful section of the wave – the tiny pocket that exists behind the curtain of the wave's crashing lip.   I needed a wave big enough to create room for me to maneuver my board behind the curtain. I needed a big wave so that it would have enough power to push me back out of its crashing vortex. And of course, I wanted to know that I'd caught the biggest and best wave that morning. It started out well…   I stood up quickly, dropping right into the critical section. The wave bellowed, and the sky disappeared.   When you barrel… it sounds like you're in the middle of a tornado as all of the surrounding air rushes into the vortex and is pulverized into the wave. And you can only see green under the lip.   I remember looking down at that moment and seeing how shallow the sandbar looked at the bottom of the wave. And there was the wonderful sensation of speed – massive amounts of speed. The water soaring past my face, my hands skipping on top of the wave's face just behind me. And then…   In about one-tenth of a second something happened. My board was suddenly sucked up the face of the wave and into the crashing lip. It happened almost instantly, so I don't know if something caught my board, I lost my balance, or part of the outgoing tide hit the wave and broke the line I was on. Whatever caused it… in about two-tenths of a second, I stopped flying through the air and landed on the surface of the water just in front of the crashing wave. I bounced once. Then at about four-tenths of a second, my board came crashing down on top of me, hard. I don't know exactly what happened next. When I regained my senses, I was about 100 yards closer to shore, in shallower water. My head was killing me. It felt like I'd been hit with a crow bar. And blood was everywhere.   I felt along my scalp, trying to find where the wound was… There was more and more blood… more blood than I'd ever seen. More blood than I thought I had in me. It pooled around me in the water. But my hands were clean. I'd run them all through my hair… I wasn't bleeding from my head. And yet, blood was gushing down my chest.   I never felt the skeg hit my neck. I never felt it slice, like a razor, straight down from around the bottom of my ear, nearly halfway across to my Adam's apple. And of course, you can't see your own neck without a mirror. And so I just sat there bleeding… trying to figure out what had happened. A guy walking along the beach saw me. He was pointing at something right next to me… No, he was pointing at me… He started screaming.   I don't have any real facts to give you about how severe my wound really was. I couldn't see it. I know that my carotid artery wasn't severed – or else I wouldn't be writing this e-mail. I would have died 25 years ago standing in three feet of water trying to figure out where all of the blood was coming from.   I do know that the paramedics were freaked out that my carotid artery was hanging outside of my wound. They were terrified that it may have been injured and that putting too much pressure on the wound might cause it to tear.   The sirens of the paramedics woke up my parents, who were still asleep in our cottage. My mom says she knew immediately that I'd disobeyed them, gotten up early, and gone surfing by myself. Luckily, they didn't see the wound. Nor did they realize how close I'd come to simply being knocked cold, which could have easily killed me, too.   Fortunately… it was only an accident. I had a concussion. I got a bunch of stiches at Fish Memorial hospital. A few days later, I was well enough to pass my driving test and get my first driver's license. Steve Sjuggerud still gives me grief about having a gigantic pressure bandage all around my neck in my first driver's license photo. I looked like something from the movie Highlander – like someone had tried to cut my head off with a sword. (Yes, I've known Sjuggerud since I was 12. He's been my best friend almost my entire life. He was late to meet me that morning. So I blame the whole thing on him…)   When we're 15 years old, we do incredibly stupid things. It was obvious to me, even then, that I should not have gone surfing alone. Steve and I had surfed in dangerous conditions together many, many times. We always kept an eye out for each other. We'd signal "OK" after bad wipeouts. We'd never had a problem.   And that wasn't the only mistake I made. Once I'd decided to surf alone, I should have known that going for the biggest wave… in the shallowest water… trying to get myself into the most critical section… was not only stupid, it was crazy. Yet… that's exactly what happened.   Yes, when I was 15 years old, I took remarkably stupid risks with my body. I did incredibly foolish things with the only assets I had – my health and strength. But I was only 15. I didn't really understand the consequences of these thrills.   What's your excuse today?   How many of you invest alone? How many of you take tens of thousands of dollars and willingly put that money at risk without discussing your decisions or the risks you're taking with anyone else? How many of you take risks with your assets that you know aren't wise?   How many of you break your position-size guidelines? How many of you ignore your trailing stop losses… or still don't even know what those are yet?   And whom do you blame when you find yourself sitting on a $10,000… $50,000… or even $100,000 loss in your brokerage account? You're an adult. You should be perfectly aware of the consequences of chasing thrills instead of solid returns.   The single most valuable thing I could teach you about investing is also the simplest. It's the same thing, essentially, that my parents told me on that beautiful morning 25 years ago:   Don't go surfing by yourself…   Don't buy stocks without taking a few simple precautions that can almost completely eliminate the risk that you'll suffer a catastrophic loss. If you will do this one thing – use 25% trailing stop losses and small position sizes – you will radically improve your overall results over time.   That's not because these strategies will optimize any particular position. It's because they will protect you when you inevitably take off on the wrong wave at the wrong time. And if you invest for any length of time, that wave will eventually come along.   On the other hand, if you merely use a 25% trailing stop loss and reasonable position sizes, I can almost guarantee that your investment results will become dramatically better.   How do I know? I know because of Richard Smith.   Richard was one of the first subscribers I ever had. I made a killing on the technology stocks I found for him at the beginning of my career – rocket ships like Cree, JDS Uniphase, and Qualcomm. In 1999, the average return of my newsletter was something like 85%. It was an amazing bull market, and we took advantage of it. As the bear market of 2001 and 2002 developed, we stopped out of these highfliers with big gains. We sold as their prices reversed, long before those reversals led to losses.   But Richard didn't. He held those stocks after I recommended selling. And he lost a bundle. The experience was so painful and humiliating, he swore he'd never let it happen again. To make sure it didn't, he spent millions of dollars and 10 years developing a software system called TradeStops.   The idea is simple. TradeStops makes sure you're never "surfing alone." The software makes sure you keep your losses small and take your profits while they're still big. All you have to do is enter the stocks into the TradeStops system when you buy them and specify what trailing stop you want to place on the position. Then, TradeStops lets you know when it's time to sell. It will also tell you how many shares to buy if you want to follow a specific position-size limit.   I like Richard and his software so much that I decided to invest in his company. As a favor to me, Richard has put together a report that will show you, in surprising detail, how much better our newsletters' track records would be if our editors strictly abided by trailing stops.   That may sound odd since few financial publishers have done more than S&A to tell investors about the importance of trailing stops… But our editors (me included) are free to set their own exit strategies for individual positions. Occasionally, an editor will decide to not use a trailing stop loss. Or he will recommend selling a stock before it has turned down. Dan Ferris, in Extreme Value, doesn't use trailing stop losses at all. But what if he did?   What if all our editors always used 25% trailing stop losses and never sold a stock except when the trailing stop was triggered? What would our long-term track records look like in that case?   Those questions are answered in the report Richard has written for me. He can also tell you a lot of other interesting details about our products – like which editor has the best overall track record.   Now… I don't want to steal Richard's thunder. He's worked for years to collect data from our letters and he's invested millions of dollars into his system and this analysis. He did it completely at his own discretion. I didn't ask him to figure these things out…   He simply believed he could improve upon our results by studying our track records carefully and applying some simple strategies – or, as he calls it, "basic math." (It's basic to Richard because he studied math at University of California-Berkeley and has a PhD in systems analysis.) So… there's a lot more in Richard's report that I strongly believe you should read. But I'll prove to you that this report is worth getting and reading.   Here's my claim: Assuming you're already reading our newsletters, there's nothing more you can do to improve your actual performance than reading Richard's report and using his system. According to Richard's data…   The recommendations I've made in my Investment Advisory newsletter over the last 10 years produced a 300% total return. But using my recommendations together with Richard's trailing stops would have made 364%.   Dan's Extreme Value produced 166% gains. That's outstanding. But using trailing stops and Dan's investment ideas together would have made a lot more – 253%.   And Steve's conservative advice in True Wealth served readers very well, with total returns of 144%. Using trailing stops all of the time (instead of just most of the time, like Steve did) would have increased that gain to 204%.   All of these gains would have beaten the S&P 500 by a wide margin. There's no doubt that our newsletters are great for investors. That's great news, and I'm proud of our record.   But if you're following these letters already… why wouldn't you want to optimize your results? Why wouldn't you ALWAYS use trailing stops? Why wouldn't you use the best software system to make sure you never missed a stop or took a loss that's bigger than your risk parameters?   In short, why would you ever surf alone?   You're an adult. You're not investing for the thrills or to prove that you're tough enough to take a huge loss. You're investing to make money and build wealth. Out of everything I can teach you about building wealth, this system is clearly the most important "add-on." It's cheap. It's easy to use. And it will make you more money than just following our letters…   I believe that if you knew what was inside Richard Smith's report and how easy it was to use TradeStops… you would be crazy (or stupid) not to buy it and not to use his software. So I've asked Richard to do something for me that he was reluctant to do…   He's agreed to send you his report absolutely free. He'll show you exactly why trailing stops work and teach you exactly how to use them. And that's not all. He's also agreed to let you try using TradeStops free for 90 days.   You have literally nothing to lose. You can have the report for free. And you can test the software for free. You can see for yourself why it works and how easy it is to use. There's absolutely zero downside.   If you like it, just keep using it and you'll be billed for a year's worth of the service at a special discounted rate that Richard is giving exclusively to Stansberry & Associates subscribers. It's his lowest rate – $79. That's more than 45% off his normal annual subscription fee. It's pennies on the dollar compared with what this system will save you in time and capital gains.   So… it's simply up to you. Are you going to take the smallest step possible – just a few minutes of your time – to start using Richard Smith's TradeStops? If you're not going to do at least this much, you're choosing to surf alone.   Don't make that mistake.   Crux note: To get Richard's free report, click here.   More from Porter:   Must-read: Porter Stansberry predicts a massive new bankruptcy   Porter Stansberry: The only thing you really need to know about the government shutdown   Porter Stansberry: An urgent warning for middle-class Americans New Fed Alarm Over Shadow Banking Posted: 07 Oct 2013 12:55 PM PDT Fed's next power-grab coming, targeting private-sector lenders now free of Fed bail-outs...   IT COMES to something when every story you read in the papers makes you ask: What's the agenda? says Miguel Perez-Santalla at BullionVault.   But I can't help asking that question reading today's Wall Street Journal, and the article entitled "New Alarm on Shadow Loans".   Before I began reading it, I felt I knew what its intent would be: more control by the federal government, and less freedom for the private economy to serve consumers, householders and businesses as they would wish.   Once again, the Federal Reserve Bank – who has since its inception 100 years ago been a poor controller of banking practices and even poorer at policing banking entities – wants to expand its portfolio of lending institutions which it regulates and supports. These latest targets are those known as "Shadow Banking Businesses".   What that term actually reflects is businesses which lend money without any banking regulations. Of course, that doesn't mean they are unregulated. This "shadow banking sector" is regulated by all the normal business rules and regulations. We're talking about micro-lenders, pawnshops, auto lending, and any other form of lending that may not be directly controlled by the banking system.   Ask yourself why, in the last six months, you keep reading that the Federal Reserve Bank is concerned about shadow loans. Could it be the fact that all the quantitative easing – an $85 billion monthly injection of capital into the banking system – has not resurrected lending from the official banking sector? Could it be that they want to bring shadow banking under their umbrella so that they can claim that these loans are being made through the support of the fed banking system? Or is it just another power grab?   The WSJ article states there are one trillion dollars in this shadow lending sector. The New York Fed is quoted as saying "much of this money is being lent under loose conditions." It goes on to state that "the deterioration in loan underwriting has come hand-in-hand with an increased presence of retail investors in the leverage loan market."   I wonder: If these businesses are unregulated, how is it that the New York Fed has any idea about their lending practices? Moreover, why does it concern them at all anyway?   First I believe the Fed, the leader of the organized banking concerns, does not like competition. Secondly, they are losing business to the competition and so they want to bring it under their umbrella to stifle it. I can't see any other reason for their concern.   What if these "shadow lending" businesses did have problems with their loans? They would go bankrupt is the simple answer. They are not part of the banking system, they should not be bailed out, and there should not be any public money injected to help private lending institutions. So, it is not in the Fed's hands simply put.   So the Fed bringing these types of organizations under their umbrella would only undermine these already functioning lending institutions in the public domain. The Federal Deposit Insurance Corporation, or FDIC, which exists to support and regulate the banking institutions in essence increases the risk to both lender and depositor. Because it creates the ability to work with lower capital basis versus reserves, with the FDIC underwriting the risk of collapse.   Of course after the 2008 banking meltdown in the economy, we are all well aware of the deficiencies of our governing agencies in managing the licensed banking institutions which it already regulates. The question then remains, what would make their involvement in the shadow banking industry an important or positive influence?   One point made in favor is that individual investors, who represent roughly one third of the money behind leveraged loans issued in 2013, are at risk. No kidding! That is the risk they take when seeking high returns. This is why it is called an investment and not a deposit.   An investment is always a risk and the people and its government should not be responsible for risks taken by investors. Nor should the government step in every time it sees people taking risks, and spread that risk across all taxpayers instead by seeking to regulate – and so underwrite – the investment being done.   I sincerely fear that what I read in the Journal this morning intimates that the Federal Reserve Bank is gearing up to propose regulation of the shadow banking industry. This is an unwise and unjust cause. I for one would vote against if given any say, and I will write my representatives asking for them to vote against it whenever possible. Most likely if the ruling party agrees with the Federal Reserve it will find a way to give them this power.   In reverse, I would like to see all national US banking associations broken up by state. I would like to see more power given to state banking authorities. I would like to see a return to hands-on management of the banking industry something that cannot be done through a federally centralized organization.   This is also unlikely to happen. But in view of our constantly growing oligarchy – which we call the federal government – I consider it an omen that the problems we currently have and are trying to work through will only be exacerbated. Sadly as a citizen of the United States of America I lack confidence in the current structure that controls our money. For this reason alone I believe in holding gold as an asset that is outside of the banking industry and cannot be manipulated by machinations of governmental agencies.   With the current state of affairs, the government shutdown and the impending debt ceiling, I have little faith that the US government under its current leadership can get its affairs in order. Trying to extend its powers, and its responsibilities to utterly private risks taken freely, is just another example of how the state has lost its way.

Rise of the $100 paper silver lions Posted: 07 Oct 2013 11:53 AM PDT Alas, the basic mechanism of price discovery of anything traded on an exchange has been terminally infected by speculators having access to unlimited funds and super fast computers for trading.

You know that one guy who successfully signed up for Obamacare? He didn’t Posted: 07 Oct 2013 11:45 AM PDT Chad Henderson was all over the news the past two days.  The 21-year-old student from Georgia was cited in multiple articles as being one of the few, the proud, the successful to signed up for insurance through a federal exchange.  On his Facebook page, Henderson bragged about being interviewed by "The Wall Street Journal, Washington [...] The post You know that one guy who successfully signed up for Obamacare? He didn't appeared first on Silver Doctors. Check out these similar articles: As A Result Of Obamacare, Employer-Based Health Insurance Is Becoming Extinct IRS Hiring Thousands of Armed Tax Agents to Enforce Obamacare Maine Gov Calls New ObamaCare IRS Agents the ‘New Gestapo’

The Fed, gold & jobs Posted: 07 Oct 2013 11:24 AM PDT The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering what's happening to investments, including gold.

Gold price is bound to go through the roof Posted: 07 Oct 2013 11:01 AM PDT GATA

A Dangerous Game Indeed Called “Defaultornot” Posted: 07 Oct 2013 11:00 AM PDT Tweet Washington is playing some very dangerous games right now.  The shutdown, the debt ceiling and then topping it off by tying Obamacare to it all has the potential to make this really ugly.  Don’t get me wrong, I don’t think Obamacare is anything other than another way for the federal government to extract more revenues from the economy.  I am not a fan of it and the fact that no one was even able to read the bill before voting on it makes it that much more of a travesty to swallow…but…I don’t think it should be tied to the fiscal debate process. Yes I know, many will say that the only way to get anything done is by using the leverage of forcing a default on the Treasury…and no one would be stupid enough to do this right?  My point is that one side or the other absolutely has to give in or “blink” which of course will create other problems.  Please keep in mind that this is being done very publicly and our creditors are watching closely which will put even more pressure on the Federal Reserve to sop up the global selling of Treasuries which began in May. It is already clear that Obamacare will fail on its own so tying it to the fiscal debate is foolish in my mind because there is way too much to fix…it’s probably not fixable in any fashion anyway.  The problem now is “time” or I should say lack of it.  The Treasury has only 10 days or so to get its debt ceiling raised; changing Obamacare other than completely defunding it or erasing it would take 6 months or more.  There is no time left!  Not that it really matters because we are so far past “over the cliff” but “how much is enough?”  How much of a raise in the debt ceiling is enough?  Enough to last any amount of time before the same process needs to start all over again?  And how much is “too much?”  Too much as in enough to create a panic exit from existing Treasury owners when they realize “the sky is the real limit.” 10 days.  10 days between the current “fake shutdown” and one that is absolutely real.  “Real” as in government checks of all sorts no longer going out …and if cashed coming back NSF.  Real as in EBT cards no longer working.  Real as in millions of government workers “essential” or not (imagine that) not going to work.  Real as in the markets collapsing, the banks not opening and the inevitable global financial panic getting started. I just heard Art Cashin on CNBC say that other “defaults” have occurred because of the inability to “pay” whereas this one would be “self-inflicted” and that even if a default did occur the Congress could just “flip a switch,” make payments and turn everything back on.  I’m not so sure of this Art.  I would speculate that it might only take until day 2 or 3 of a default before what is set in motion …cannot be “unset” in motion.  The markets are so fragile and so over levered that tremors turned into convulsions may not be able to be calmed down or reversed. Panics are a funny animal; they can be postponed for a long time but once they begin they normally cannot be halted until they run their course.  Argue with me or not, what do you think will happen to the gold market were the U.S. to actually miss interest payments and not have “funds available” to prop up paper and depress real money?  Again, my guess is that day 2 would be the point of no return.  Should the PPT not have “unlimited” funds to prop up the dollar, Treasuries and the stock market I think we would see the beginnings of a wipeout waterfall. If there were not unlimited “guarantees” to those short the paper metals markets what do think would happen?  Day 1 might start out slowly and see a $30 gain by noon time and maybe $50 to $100 by the end of the day.  What do you suppose day 2 would look like?  We might actually get some follow through which has been negated with paper for more than 15 years?  Could day 2 be a $200 day?  $300-$500?  I don’t know and no one does but I think it’s a very good bet that any default by the Treasury lasting more than 2 days will result in a very high number “bid” for gold with NOTHING offered! Yes this is a very dangerous game of grenade they are playing because it could easily get out of control very quickly and become something too big with too many moving parts to “fix.”  Whether you want to believe it or not, the rest of the world has been preparing for something like this for a very long time now.  Without much imagination used at all, I can easily see how a “reset” doesn’t just “happen” but is forced on the U.S.  Should we actually do something stupid in this game called “defaultornot?” I fully expect some “wonderful deal” to be announced that “FIXES” everything.  You know the type of deal that “puts us on a solid base again.”  The type of deal that shows our “resolve” and “fiscal restraint.”  Photos will be taken of smiling politicians and “all will be well again.” …There is no deal or fix at this point that even Jesus Christ himself could manage short of turning lead into gold that will repair the current system.  In my opinion, it is and has been only a matter of time before an epic panic out of dollars and everything else paper begins.  How apropos would it be for Washington to do it to themselves?Similar Posts: The So-Called 'Recovery' Force Majeure Was the End Game All Along! Let the Game Begin!

Is Crude Oil Ready for Further Growth? What Impact Could It Have on Gold? Posted: 07 Oct 2013 11:00 AM PDT SunshineProfits

India ought to take up a holistic view to safeguard gold's luster, says WGC Posted: 07 Oct 2013 10:55 AM PDT WGC urges a thorough relook at the policies implemented by the government in recent times. The government needs to find a satisfactory compromise between the country's economic reality and the consumer gold demand.

The Saga Of How JP Morgan/Jamie Dimon Ripped Off America With Barack Obama’s Full Endorsement Posted: 07 Oct 2013 10:30 AM PDT JP Morgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got. – Barack Obama on “The View,” May 14, 2012 Is Jamie Dimon smart? I dunno. You give me a couple hundred billion in taxpayer money and freedom from any fear [...] The post The Saga Of How JP Morgan/Jamie Dimon Ripped Off America With Barack Obama’s Full Endorsement appeared first on Silver Doctors. Check out these similar articles: Is JP Morgan CEO Jamie Dimon the "World's Funniest Financier?" Is Jamie Dimon About to be Indicted by Interpol Over $50 Billion in Laundered MF Global Derivatives? Lowlights of Jamie Dimon’s House Testimony- Chairman Tells Jamie No Need to Take an Oath!

Is the next bear market about to begin? Posted: 07 Oct 2013 10:25 AM PDT The stock market is finally beginning to show signs that the bull market may be coming to an end. Before I go into the stock market though, I want to discuss the dollar because I think currencies are going to be integrally tied to the topping process.

Sense of calm keeps gold flat despite threat U.S. won't pay its bills Posted: 07 Oct 2013 10:02 AM PDT Precious metal prices were unchanged in what dealers called "thin, quiet" Asian and London trade Monday morning, despite increasing fears the U.S. government will fail to meet its obligations in only 10 days' time.

Is the Next Bear Market about to Begin? Posted: 07 Oct 2013 10:00 AM PDT Gold Scents

Gold price starts the week up whilst sticks fall as government shutdown enters second week Posted: 07 Oct 2013 09:29 AM PDT The US government is STILL shut-down, which means getting on for 1m government workers are sat at home twiddling their thumbs, without pay. Whilst this probably isn't much of a concern for a couple... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Gold’s safe-haven appeal burnished in U.S. debt standoff Posted: 07 Oct 2013 09:24 AM PDT Gold is marginally lower in most major currencies despite the near week long U.S. government shutdown, which is leading to genuine fears that Congress may struggle to raise the U.S. debt ceiling.

David Morgan: There Is NO Endgame! Posted: 07 Oct 2013 09:20 AM PDT In this interview with Ellis Martin, David Morgan discusses the absence of an endgame for the US economy, and revisits how we got here. The post David Morgan: There Is NO Endgame! appeared first on Silver Doctors. Check out these similar articles: David Morgan: "The Best is in the Last Leg of a Bull Run" David Morgan (The Eventual Rush to Silver) Ellis Martin Report with DAVID MORGAN: SILVER "Bottoms Up?"

Do They Really Think the Entire World is that Stupid? Posted: 07 Oct 2013 08:30 AM PDT Tweet Normally, I write these "quickies" in the early morning.  However, it's Sunday night and the whole family is asleep – including my father, visiting from Florida.  And thus, to prolong my tomorrow, I put this one together tonight.  There's not a whit of time sensitivity in this piece; other than the rapidly approaching fiat currency END GAME. In this weekend's Podcast, I noted how a whopping 85% of government was never "shut down" despite the endless rhetoric – validating the conclusion of another great Michael Snyder article.  As I wrote last week, big government – like fiat currency regimes – is itself a Ponzi scheme that CANNOT be reduced, let alone shut down.  Too many people rely on it for survival; and thus, when I read Saturday that Defense Secretary Hagel "ordered" 400,000 furloughed military employees back to work after a whopping four days, I wasn't the least bit surprised. That said, constitutionally, can they really do that?  I mean, if the government is "shut down," can a Cabinet member simply order people back to work.  By that reasoning, why doesn't Obama simply "order" EVERYONE back to work; whilst raising the debt ceiling, invading Syria, and whatever else his whims tell him when he steps off the golf course? I had thought U.S. government credibility sunk to an ALL-TIME LOW when Congress arbitrarily "delayed" the debt ceiling in May; much less, when it claimed the recent halt in published debt accumulation was due to "reduced deficits" rather than the real reason; i.e, "extraordinary measures" that amount to nothing more than accounting fraud that will be observed by the entire world the day the ceiling is raised.  However, this juvenility takes the cake; and when combined with other, blatant government scams like daily PPT market support telling charts, the case for a rapid breakdown in global confidence grows exponentially stronger. Governments the WORLD ROUND are guilty of the same, confidence-draining lies – such as Greece stating it wouldn't dare confiscate private assets; or the U.S. claiming Obamacare will "pay for itself, the next debt ceiling will be abided by, QE will be "tapered," or Fort Knox actually holds any gold.  In many cases, I truly believe they think the ENTIRE WORLD is that stupid; which of course, could not be more untrue.  It's just a matter of time before the seeming "control" they have – via financial market MANIPULATION – is permanently lost; most notably in the Precious Metal markets, which have never been defeated in 5,000 years of human history, and certainly won't now!  Similar Posts: Debt Ceiling ‘Suspension’ Expires May 19th Debt Ceiling to Infinity – Revisited Shutdown Showdown

Technical Trading: Gold Coils In Tight Ranges, Firm Tone Seen Posted: 07 Oct 2013 08:20 AM PDT kitco

Gold ETFs Face Scary Technical Outlook Posted: 07 Oct 2013 08:20 AM PDT etftrends

As 2014 Glastonbury tickets go on sale prices once again RISE – Tickets prices have DOUBLED in just 10 years and FALL in terms of gold Posted: 07 Oct 2013 08:01 AM PDT Back in 2011 we wrote a piece about Glastonbury Festival ticket prices – and the fact that they keep going up in price way faster than the stated 2% inflation target by the Bank of England:... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Gold & Silver Go Vertical Posted: 07 Oct 2013 07:40 AM PDT Already scratching out tough gains throughout early London trading and the first hour of COMEX trading, gold and silver have just broken out vertically to the upside, with silver targeting $22.50 and gold bursting through $1325, their highest levels since the now week old shutdown began last Monday. Silver has just exploded .60 vertically, with [...] The post Gold & Silver Go Vertical appeared first on Silver Doctors. Check out these similar articles: Gold Goes Vertical, Silver Stuck in Algo Trade Gold & Silver Go Vertical on COMEX Open, Silver Clears $33 Gold & Silver Going VERTICAL After Cartel Raid As Humans Interpret Bernanke’s Remarks as QE3 is Imminent

King Canute! Posted: 07 Oct 2013 07:30 AM PDT Tweet The government has been “quasi” shut down since last Monday.  Markets have stayed open, banks have stayed open and the sun has risen each day.  We have had many such shutdowns over the years and they served the purpose of at least some fiscal restraint.  At a minimum at least the problems of creating a working budget and whether to increase the debt limit has come to light each time.  This is not new; we have had government shutdowns since the early years of the country as the founding fathers debated the very same issues of increasing or even using debt. It is different now though because in the early days the debate was whether or not to take on debt to actually build something whereas to today increasing debt is no longer a “luxury.”  I say luxury because we have crossed the Rubicon and cannot turn back as we need to continually borrow more to prevent the banking and financial systems from deflating and to pay (roll) old debt and interest.  Another difference with the current shutdown is the lengths that government is going to scare and inconvenience the population.  Parks are being shutdown, the WWII memorial has been shut down, even our military is no longer receiving video feeds of baseball or football games and unbelievably they are trying to “shut down the ocean.”  What’s next? In many cases, the government is using more manpower to make sure that no one uses the parks, memorials or whatever than it would take to just leave them abandoned.  This is foolish to say the least but is just another illustration of the growing nanny state.  This course of action may actually backfire as people see for their own eyes how wasteful this is.  Another description could be “spiteful.” Why is it important that people are not be allowed to use a park or visit a memorial?  One anonymous park ranger has said that their orders were to make it as “difficult and inconvenient” for people as possible.  Why? I don’t want to play political volleyball here but President Obama has said that the shutdown happened because “they (Republicans) just want to mess with me.” This is simply wrong and wrongheaded.  This is not about him; it is about the future, the viability of the United States.  We are now less than 2 weeks away from the Treasury actually running out of “extraordinary measures” (rabbits) to pull out of their hat.  The current shutdown is a joke compared to the coming debt ceiling debate.  It is unfathomable to think that the debt ceiling won’t be raised but as I’ve said before, this is an embarrassment and another admission to the world that without the ability to borrow more…we are broke and cannot pay our bills. This is the reality.  In order to keep the doors open we must borrow more.  Without the ability for the Treasury to borrow more, everything will stop in its tracks…everywhere.  And to think, THIS was considered an “AAA” credit just 2 years ago and is now an “AA+” credit.  Think about this. Think about the “stability” or lack of, the entire global financial system is based on a foundation that is no longer viable without the ability to borrow “more” than an already “too much.”  The reason your bank account is still accessible, your bonds still pay interest, your debit and credit cards still work…is solely because the U.S. Treasury can still borrow more. Of course, even with a rise in the debt ceiling to “make it legal,” we are no longer even borrowing from the rest of the world.  We are borrowing more ONLY because the Federal Reserve has stepped up to purchase $100′s of billions of Treasuries that the world no longer wants nor is willing to buy.  Meanwhile gold has value because it “is.”  It has no backing, no laws that “make it” money or wealth other than those of Mother Nature.  Gold has only “(un)official obstacles in its way” while fiat has the help of every possible dirty, underhanded and illegal trick in the book to help it levitate.  Any “hiccup” from Congress could be enough to turn the whole system upside down.  The Democrats will blame the Republicans and vice versa while both sides of the aisle are equally as guilty.  President Obama will blame Congress and may even try to pull a “King Canute” and legislate a rise in the debt ceiling from the Executive branch.  Just as the King could not legislate the tide, President Obama nor anyone else can legislate the U.S. into a position of fiscal and monetary solvency.  No matter the outcome over the next 2 weeks, there is no upside and negative surprises can lead to the “exits” being nailed shut virtually overnight.Similar Posts: The King of Mainstream Sellouts

Quality over Quantity Stressed at Colorado Conferences Posted: 07 Oct 2013 07:30 AM PDT If it is fall, it must be conference season in Colorado. The Denver Gold Forum, held Sept 22–25, was an invitation-only event billed as featuring seven-eighths of the world’s publicly traded gold and silver companies measured by production. It was preceded by the Precious Metals Summit in Beaver Creek, which focused on smaller, emerging companies, [...] The post Quality over Quantity Stressed at Colorado Conferences appeared first on Silver Doctors. Check out these similar articles: Brazil Resources CEO Amir Adnani on What QE∞ Means to Junior & Senior Miners Sprott’s David Franklin: Is Platinum the New Gold? Sprott Is Bullish on Silver—and Gold—Equities

Gold befuddles Bernanke as central banks’ losses at $545 billion Posted: 07 Oct 2013 06:57 AM PDT Ben S. Bernanke, the world's most- powerful central banker, says he doesn't understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.

All You Need to Know About Why Gold Must Rise Posted: 07 Oct 2013 06:30 AM PDT Tweet Since 2002, I have publicly written of every imaginable reason why Precious Metals will ultimately become the most powerful bull markets of our lifetimes.  Not the best "investments" – mind you – as PHYSICAL gold and silver are not "investments," but money.  And for that matter, even "bull market" doesn't appropriately describe the market for items that sit inertly amidst a bear market in the fiat currencies they're valued in.  Irrespective, no matter how you term it, PM purchasing power was poised to hit all-time highs when the gold standard was abandoned in 1971; set in stone when the U.S. dollar peaked in 2001. During this period, I have gone to great lengths to describe both qualitative and quantitative reasons why the world's SEVEN BILLION residents would increase PM purchases at rates far greater than the meager supply of these, the most "precious" of metals.  Back then, I could have never imagined that in 2013, these arguments would be so much more dramatically powerful, nor that the gold Cartel could have done so much damage to the global economy.  In other words, I'm amazed they haven't been defeated yet – as ALL such attempts to suppress REAL MONEY have throughout history; but more so, how helpless the global economic outlook has become.  And, for that matter, the concomitant political and social outlooks. Recently, I have focused not just on the usual monetary theory, but the economics of mining itself – which PROVE gold and silver prices, cannot materially decline from here.  And if you don't believe me; instead, choosing to submit to the fear tactics of newsletter writers like Harry Dent (gold going to $750/oz.); read this quote from multi-decade mining operator Keith Barron, credited with some of the largest gold discoveries of our time.  And when you do, consider how little downside gold prices have – particularly given the expanding global economic catastrophe – compared to the upside… There has been speculation about the price of gold dropping below $1,000.  I don't care what anybody says, that's not going to happen.  This would put gold so far below the cost of production that many large mining companies would simply shut down.  Many major mining companies aren't making any money even at current prices.  They literally would be hemorrhaging money at much lower gold prices. -King World News, September 25, 2013 And as for the aforementioned "Harry Dent," a newsletter writer who lures people into paying for his drivel via sensationalistic "memes," let me just put the "Will Harry Dent be right?" fears to rest.  To start, here's his November 2004 prediction that the Dow will be 40,000 – and the NASDAQ 20,000 – by 2009; via his "meme" of the time, the "New Millionaire's Economy."  Last I looked, the Dow ended 2008 at 8,000 – and the NASDAQ at 1,500 – amidst an epic economic and market collapse that wiped out essentially any remaining wealth Americans still salvaged after the 2000-02 "tech wreck."  And the icing on the cake – in this case, being miserably wrong in the other direction; here's his September 2011 call that the Dow will fall to 3,000 in 2013.  Well, he's still got three months left to be right; but at 15,000 today, it doesn't appear likely.  In other words, STOP LISTENING to fear mongers; especially those that claim to have "proprietary" fundamental or technical analysis.  I ASSURE you they don't; and trust me; I'm A LOT smarter than any of them – as are David Schectman, Bill Holter, and ALL the "good, smart" people I regularly reference. Anyhow, back to the point of this article – comprising all the qualitative and quantitative data you could possibly need to understand why the Cartel CANNOT hold PM prices back forever; and likely, not through 2014, no matter what illegal tricks they conjure up.  Below is an article about this week's "Golden Week" holiday in China; you know, the one that has kept the Shanghai Gold Exchange closed, enabling the Cartel to suppress PAPER PM prices despite countless, MASSIVELY PM-BULLISH news like the government shutdown, debt ceiling "debate," plunging economic data, and the dollar index plummeting below the KEY ROUND NUMBER of 80… China’s Gold Fever Rises, Showing No Signs of Abating As 'Golden Week' Holiday Kicks Off Golden Week lasts eight whole days; and per the article, you can be sure PHYSICAL demand will continue to surge when the markets re-open Wednesday.  Frankly, it's nothing short of miraculous how the Cartel has kept the game going throughout 2013; pushing PAPER gold and silver prices down 20% and 30%, respectively, despite RECORD PHYSICAL DEMAND and PREMIUMS in the Eastern Hemisphere; not to mention, RECORD U.S. Mint sales of Silver Eagles, and the highest sustained U.S. silver premiums since 2008. How have they done it?  With NAKED SHORTING, of course; and draining of any remaining PHYSICAL the U.S. Treasury may have had – which frankly, could not be much.  This is why COMEX, LBMA, and GLD inventories have been plunging; and why shortly, their last shreds of credibility will be gone.  With the global economic collapse ongoing at breakneck speed – with not a chance of reversal until TENS OF TRILLIONS of bad debt is written off – the trends depicted in the "gold fever" article above will continue to multiple, exponentially. Each night, I sleep like a baby knowing I have PROTECTED myself against the inevitable currency collapse that follows ALL attempts to replace REAL MONEY by fiat.  The current system is in its death throes – hence the constant Cartel attacks.  However, following death throes is DEATH.Similar Posts: Manipulation Was the Cause of Gold's fall Record Highs are a Real Possibility in the Future Gold and Silver Are Taking Off

Buying Silver Was The Stupidest Move I Ever Made! Posted: 07 Oct 2013 06:20 AM PDT The Silver Bullet Silver Shield’s Chris Duane responds to claims that buying silver was the stupidist move I ever made by reviewing the fundamentals and what has transpired in the markets in the 5 years since the Lehman collapse. Will you be worried about a fiat price correction in 2013 if the entire system collapses? The post Buying Silver Was The Stupidest Move I Ever Made! appeared first on Silver Doctors. Check out these similar articles: Chris Duane: Silver Headed to 1-to-1 Ratio With Gold As Manipulation Collapses Silver Backed Currencies & $300 – $500 SILVER? – BrotherJohnF & Chris Duane One-on-One with Chris Duane on Silver

“Algerians Are Investing In Property, Gold and Foreign Currencies” Posted: 07 Oct 2013 06:12 AM PDT The Algerian government has ramped up spending to ward off unrest, helping drive inflation to a 15-year high last year, and pushing Algerians into the currency and real estate markets as they seek to shield savings. "To protect themselves against inflation, and therefore the devaluation of the dinar, Algerians are investing in property, gold and [...] The post "Algerians Are Investing In Property, Gold and Foreign Currencies" appeared first on Silver Doctors. Check out these similar articles: Gold Rises 1.8% As Central Banks Further Debase Currencies – Gold Safe Haven in November Gold Set to Make Record Highs in ALL Currencies SHFE may allow foreign participation in metals trading

"Sense of Calm" Keeps Gold Flat Despite Threat the US "Wont Pay Its Bills" Posted: 07 Oct 2013 06:00 AM PDT Bullion Vault

US Govt shutdown has limited impact on Gold: Barclays Posted: 07 Oct 2013 05:29 AM PDT Trend indicators signal that we are in a range phase and buying interest ahead of a cluster of support in the 1270 area is keeping us neutral. A move below there would signal further downside toward the lows near 1180 where we would be looking for signs of a base and a push higher toward the 1434 range highs

Gold slightly bullish, better to be cautiously optimistic: Barclays Posted: 07 Oct 2013 05:01 AM PDT Gold was marginally undervalued by $10 an ounce in September and hence small price movements upward can be expected although investors should be cautious as negative fators continue to impact gold sentiments.

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