Gold World News Flash |
- Paul Mylchreest: Signs of a trend change in the monetary metals
- Silver and Gold Prices Dropped Again Today with the Gold Price Closing at $1,153.30
- De-Dollarization - Mapping The Ruin Of A Reserve Currency
- Bron Suchecki: China to control the gold price, but with physical or paper?
- GATA's Ed Steer interviewed on the big anomaly in monetary metals prices
- Major Chain Stores Shutting Down as America Faces “Birth Pangs of Retail Apocalypse”
- Gold And The Silver Stand-Off: Is The Selling Of Paper Gold And Silver Finally Ending?
- Silver Pretty, Silver Ugly
- Max Igan : Reclaiming the Earth - Boom Festival Portugal - August 2014
- Gold Daily and Silver Weekly Charts - Reaping the Whirlwind - The Good Shepherd
- In The News Today
- Harry Dent: US Is Heading Toward Financial Ruin Economic Collapse
- Retired FBI Agent Investigates Sandy Hook: MEGA MASSIVE COVER UP
- Gold is Cheap
- Bond Market Meltdown What Really Happened on October 15
- Water: The New Gold for The NWO Corporations
- Max Keiser: The Greatest Economic Collapses In History is Coming!
- You Should Be Paying Attention to this Economic Indicator
- Gold Stocks: Earnings Make Charts
- Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash
- Focus Begins to Shift
- The OPM Infobomb
- Silver Pretty, Silver Ugly
- Greeks Cannot Access Cash, Gold, Silver In Bank Safety Deposit Boxes
- Tuesday Morning Links
| Paul Mylchreest: Signs of a trend change in the monetary metals Posted: 14 Jul 2015 09:31 PM PDT 12:30a ET Wednesday, July 15, 2015 Dear Friend of GATA and Gold: Market analyst Paul Mylchreest of ADM Investor Services International Ltd. in London, who a year and a half ago speculated that gold was being shorted and suppressed as part of a trade that was long the Japanese stock index -- http://www.gata.org/node/14822 -- reports this week that the correlation is breaking down, that there are other signs of a trend change in the monetary metals, and that more anomalies are developing in the financial markets. Mylchreest's new report, titled "Gold and the Silver Standoff: De-marketing and Deep Value," is posted in PDF format at GATA's Internet site here: http://www.gata.org/files/Mylchreest-ADM-07-14-2015.pdf CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:
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| Silver and Gold Prices Dropped Again Today with the Gold Price Closing at $1,153.30 Posted: 14 Jul 2015 07:30 PM PDT
All the same, the price of gold has formed a bullish falling triangle (chart on the right). I say "bullish" because these triangles usually resolve upwards. A close tomorrow above $1,160 breaks the gold price out of that wedge. A fall through $1,130 would, too.
My operating theory in the teeth of all the calls for a gold price at $750 and silver price at 800 cents remains that you are now witnessing, or have just witnessed, the intersection of several cycles with the seasonal lows in silver and GOLD PRICES. This ought to mark the lows in the bear phase that seized silver and gold after the 2011 highs. I may be left looking stupid, but I won't lack an opinion. To understand the world's present financial and government system, you must understand the concept "harvesting." Harvesting occurs when the Tapeworm (the economy and government run by governments and central banks for the banks and their owners) slowly consumes its victims, bleeding them bit by bit until consumed. Think of a vampire keeping its victim alive to make the meal longer and more thorough, or a spider slowly sucking the life juices out of the enwebbed fly. For instance, the United States imprisons more people than any other country. Keeping prisoners has been turned into an industry that pays the criminal justice system and the prison industry (a lot of it privatized, remember, and contracted) and provides jobs for all those folks. Inmates are slowly consumed as they travel through the revolving door of prison and outside, until finally, having squeezed all possible juice out of them, the system discards them. I don't know all the details, but part of Greece's surrender requires them to escrow 50 billion euros in a liquidation fund. Europresident Jeroen Dijsselbloem said, "It still is going to be an independent fund, valued at 50 billion euros which can be airplanes, airports, infrastructure, and most certainly banks. . . They will be brought in with the target to privatize those in coming years, but we will take our time for that." I'm only a durned nat'ral born fool from Tennessee, but I've seen "privatization" before. It is a type of "harvesting" where state owned assets are sold off to Insiders at bargain basement, nickel-on-the-dollar prices, under cover of "freeing" the market. Yes, that's right, it's a corporate takeover. The Euros are asset-stripping Greece. Having enslaved it by debt, they are now "harvesting" the country entire, asset stripping it. And y'all thought slavery was dead -- now they're enslaving whole countries. There really is no limit to Our Masters' gall. Oh, mercy! After I wrote the above this morning, a Greek friend sent me this article from ekathimerini.com describing the bailout, http://bit.ly/1K4QvZw It's all far worse than I thought. The Euros have literally seized control of the country and its government. They've re-poed the whole country.
It really frustrates me to see market after market behaving abnormally. They break out, then utterly refuse to carry through. Take, for example, the US dollar index on the right. The Dollar index broke out topside of an even-sided triangle on 7 July, strong breakout, influenced by the Greek drama. Next day it tucks tail and runs back into the triangle. It breaks out again. Tucks tail again. Breaks out again, even on news of a Greek settlement, then breaks down today. Now maybe that's nature working, but doesn't seem so when it plays out against the backdrop of a long, strong rise, making the last 4 months look like a consolidation in an uptrend. I'm not saying this is the explanation, but it would exactly that same way if the central bank NGM were manipulating the dollar's exchange rate downward. But the same failure to follow through has also happened in stocks and in silver and gold prices. Maybe the confusion and indecision is so widespread that no market (except sometimes stocks) can build much momentum. Makes me want to throw up my hands and shout, "It's all bogus!" Today the US dollar index made a key reversal's first half, trading into new territory for the move but closing lower than yesterday. That would have to be followed by a lower close tomorrow to confirm the reversal. Dollar index lost 21 basis points (0.22%) to 96.78. Euro rose a miniscule 0.5% to $1.1011. Couldn't rally if you filled its tank with jet fuel. Properly chastened for attempting to rally, the yen is cowering under its 20 DMA. Lost 0.07% today to 81.04. US ten year note yield has retraced its steps to the downtrend line from 2007. 'Twould be hernias and kidney stones for the Fed if the yield breaks above that and bursts the bond bubble.
In this best of all possible worlds, as Candide would say, stocks are a-blowin' and a-goin'. Dow crawled over 18,000 again, rising 75.9 points (0.42%) to end at 18,053.58. Not to be outdone, the S&P500 rose 9.35 (0.45%) to 2,108.95. The pattern? Broadening tops within broadening tops, emphasizing and re-emphasizing that stocks are rolling over.
Dow in silver rose 1.27% to 1176.51 oz. Same picture as with gold: Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2015, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| De-Dollarization - Mapping The Ruin Of A Reserve Currency Posted: 14 Jul 2015 07:00 PM PDT The dollar has been a stalwart of international trade over the majority of the last century. Around the time of the formation of the Eurozone, it reached its recent peak at 71.0% of official foreign exchange reserves. Since then, its composition of global reserves has more recently dropped to a more modest 62.9% in 2014. However, the dollar is slowly losing its status as the world's undisputed reserve currency.
This is not an unusual event as far as history goes. In fact, about every century or so since the Renaissance, the global reserve currency has shifted. Portugal, Spain, The Netherlands, France, and Britain have had dominant currencies at different times. Today's infographic shows that the wind is shifting in international trade. With less countries and organizations using the dollar to settle international transactions, it slowly chips away at its hegemony of the dollar. China is at the epicenter and the country is making continued progress in cutting deals outside of the U.S. dollar framework. Deals shown in the graphic are currency flows between countries that have abandoned the dollar in bilateral trade, as well as countries that are considering such measures. The most recent culmination of these trends is the creation of the Asian Infrastructure Investment Bank (AIIB), a China-led rival to the World Bank and IMF that includes 57 founding countries and $100 billion of capital. The United States is not a member and has actively lobbied its allies to avoid joining due to perceived governance issues. Other recent deals by China include: a 30-year $400 billion energy alliance with Russia, a second energy deal focusing on natural gas worth $284 billion with Russia, and a deal removing tariffs on 85% of Australian commodity exports to China. Further, China and Russia have agreed to pay each other in domestic currencies in order to bypass the U.S. dollar. It is not only the Chinese that are starting to question the viability of the dollar. A report in 2010 by the United Nations called for the abandonment of the U.S. dollar as the single reserve currency. The Gulf Cooperation Council has also expressed desires for an independent reserve currency. In the short term, especially with a crashing Chinese stock market and fledgling Eurozone, the dollar will likely reign supreme. It's still a stretch for the yuan to make its way into foreign reserve coffers so long as capital controls remain in place and the country's bond market is not open or transparent to offshore investors. However, Beijing is currently mulling ways to internationalize the yuan, and each step it takes will take China closer to challenging dollar hegemony. With more bilateral trade transactions bypassing the dollar, and the increasing internationalization of the Chinese financial system, the yuan is eventually going to give the dollar a run for its money.
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| Bron Suchecki: China to control the gold price, but with physical or paper? Posted: 14 Jul 2015 06:38 PM PDT 9:37p ET Tuesday, July 14, 2015 Dear Friend of GATA and Gold: In commentary headlined "China to Control the Gold Price, but with Physical or Paper?," Perth Mint research director Bron Suchecki today elaborates on a point often made lately by your secretary/treasurer: that China's growing influence over the gold price may not necessarily be bullish, that China wants gold to share the currency market-rigging power now enjoyed by the United States, and that China almost certainly was complicit with the smashing of the gold price in April 2013. For example, see: http://www.gata.org/node/13256 http://www.gata.org/node/15361 Suchecki writes: "While the Chinese are indeed large consumers of physical, I think it is naïve to think that as their gold market matures their bullion banks will refrain from the same exchange/over-the-counter proprietary paper trading activities that Western bullion banks do, or that the same greed dynamic we have seen driving leveraged Chinese stock market investing (via official and hidden margin lending) will not occur in the gold market." Suchecki's commentary is posted at the Perth Mint's Internet site here: http://research.perthmint.com.au/2015/07/14/china-to-control-the-gold-pr... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GATA's Ed Steer interviewed on the big anomaly in monetary metals prices Posted: 14 Jul 2015 06:30 PM PDT 9:30p ET Tuesday, July 14, 2015 Dear Friend of GATA and Gold: Interviewed by GoldSilver.com's Mike Maloney, GATA board member Ed Steer discusses the anomaly of rising demand for monetary metals amid their declining futures prices, the price suppression undertaken by central banks and their bullion bank agents to sustain the fiat, debt-based world financial system, and the prospects for a big change in the system. The interview is 26 minutes long and is posted in two parts at GoldSilver.com here: http://goldsilver.com/video/crisis-up-but-silver-down-part-1-mike-malone... http://goldsilver.com/video/silver-down-but-crisis-up-part-2-mike-malone... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT USAGold: Coins and bullion since 1973 USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business. Please call 1-800-869-5115x100 and ask for the trading desk, or visit: USAGold: Great prices, quick delivery -- all the time. Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Major Chain Stores Shutting Down as America Faces “Birth Pangs of Retail Apocalypse” Posted: 14 Jul 2015 06:20 PM PDT by Mac Slavo, SHTFPlan:
Reduced consumer spending is heralding a looming economic downturn, if not collapse, with an unprecedented shutdown of major box stores, restaurants and grocers underway. It doesn't bode well for the millions of Americans who are already seriously struggling, and will only accelerate the death of the middle class. Along with this massive shrinkage of the retail sectors will go thousands of jobs. Natural News reports:
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| Gold And The Silver Stand-Off: Is The Selling Of Paper Gold And Silver Finally Ending? Posted: 14 Jul 2015 05:51 PM PDT Submitted by Paul Mylchreest of ADM Investor Services Intl. (pdf version) Gold and the Silver stand-off: Demarketing and Deep Value The demarketing (in the 1971 Harvard Business Review, Kotler and Levy defined demarketing as "discouraging customers in general or a certain class of customers in particular on either a temporary or a permanent basis." This is normally done when there is a shortage of supply or desire to promote other products) of gold may be close to running its course as it seems that sellers of paper gold instruments are attempting to induce one more sell-off to fully cover their diminishing short positions. Indeed, signs are emerging that the long Nikkei/short gold trade, which has done so much damage to gold's price, is becoming problematic. This could be due to one or more of: less desire to run large paper short positions by some banks/funds; rising cost of repo funding; larger bids emerging for physical bullion below $1,200/oz; and/or a view that the BoJ is reluctant to engage in ever greater stimulus. The gold basis and four major identifiable sources of gold demand (Shanghai Gold Exchange withdrawals, Indian imports, net ETF changes and net central bank changes) are indicating strong physical demand right now. Anomalies in the silver market, such as large positive divergences in open interest and ETF holdings versus gold, suggest that entities which have been shorting gold may have been hedging (at least partly) in silver. What appears to be a stand-off in this much smaller market means that enormous volatility in the silver price is probably inevitable, especially with physical supply drying up. It could be argued that a deep value case for gold, silver and related equities is becoming more and more apparent. For example gold, the HUI (NYSE Gold Bugs Index) and the GDXJ (Junior Gold Miners ETF) have underperformed the S&P 500 by 66%, 87% and 91%, respectively, since their peaks.
The gold price is still performing poorly in US dollars.
That said, it is close to being in a bull market in Yen, now 18.2% above its 2013 low…
…which says something about gold's value (even in today's seriously flawed gold market) in the face of a currency which has been deliberately and cynically debased by the BoJ (QQE running at 17% p.a. of GDP). Price discovery in the gold and silver markets remains misunderstood by an overwhelming majority of financial market participants. It was been hijacked by two factors.
In a January 2013 report "Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans by NBFCs", the Reserve Bank of India estimated that the ratio of paper gold trading to physical gold trading is 92:1. That is a lot of unbacked paper gold instruments. This has almost entirely separated the "gold price", such as it is (the clearing price for vast volumes of paper gold "representations" with a fractional backing) from the fundamental supply and demand dynamics for actual physical gold bullion. As Mr L. famously quipped. "Ever get the feeling you've been cheated?" Using the net short position of the Commercials (mainly banks) on the COMEX as a proxy for paper gold supply, the chart below shows how on the three occasions during 2006-11 that more paper gold was NOT supplied into a rising gold market, the gold price went parabolic.
In terms of the long/short trade, we outlined a thesis in late-2014 which drew together a complex web of interactions between the gold price, Japan's Nikkei index, repo financing, BoJ policy meetings and anomalies in the silver market. In brief, our thesis was as follows. The interactions began forming in late-2012, specifically around September, which was a pivotal period in recent financial history, when central banks (notably the Fed and BoJ) embarked on a new phase of aggressive credit creation.
We believe that at the centre of these interactions is a large, leveraged long/short trade which we think is long the Nikkei index and short paper gold. The more the Nikkei rose, the more the gold price was pushed down and, in many cases, major price moves in both were closely tied to BoJ policy meetings, especially announcements of (even) more aggressive monetary policy under "Abenomics". We began to suspect that gold might be the short in a long/short trade when we noticed a reasonably close correlation between gold and interest rates in the repo market. In particular, the gold price tended to decline with the cost of repo funding. The repo market is a major part of the "shadow banking" sector and is the nexus for investment strategies involving leverage and short selling. Controlling the short gold/long Nikkei trade may have become more problematic in recent months. For example, repo rates have been on the rise since late-2014. As funding costs increased, the downward pressure on gold has eased somewhat— they may be related.
Suspecting that gold was the short in a long/short trade is one thing, finding the corresponding long was another. When we first looked at the charts of gold and the Nikkei, there was nothing to see…
…until we inverted the Nikkei axis. Now can you see it?
Then the almost perfect correlation between the two was visible from September 2012 until the beginning of 2015. And one that wasn't there beforehand…either in the previous year (see chart below) or earlier.
As we've said before, the long/short could be Yen/gold, rather than Nikkei/gold, although the correlation is not quite as good.
Since late-2014, the gold price has traded sideways while the Nikkei continued to rise. We can only speculate on why this is, but four possible explanations come to mind.
Before the renewed gold sell-off in recent days, gold volatility had fallen to a level which was close to a 10-year low.
Gold was/still is due for a significant price move, one way or another. In a free market, this would most likely be up since the Greek crisis led to reports of a strong pick-up in demand from bullion dealers. For example, Torgny Persson, CEO of BullionStar, noted. "Precious metals demand in the last week leading up to the Greek referendum has been about 150 % higher than normal both in terms of order quantity and order volume…Based on my conversations with the western world's leading refineries and precious metals wholesalers, they have experienced similar increases in the last week." In contrast, Bitcoin, a perceived "gold substitute", safe haven (maybe) with finite supply (although lacking any kind of "tangible" value and track record down the millennia, has performed much better.
However, a surging gold price is the last thing that anybody who's concerned with maintaining the veneer of financial stability wants to see. We suspect that the Commercials are hoping that a renewed bout of weakness will attract additional shorting by the Non-Commercials. This would allow further reduction in the Commercials' own net short position - which has been kept on a tighter leash since 2013 (and was facilitated by the price smash in April that year).
Our guess is that this is the final shakeout in gold's sell-off which has been in progress ever since the gold price peaked on 6 September 2011 - when the Swiss franc, i.e. one of the few safe havens, was pegged to the Euro (and common sense suggests should have been gold positive). Kotler and Levy, in "Demarketing, Yes, Demarketing" published in the Harvard Business Review in 1971, defined demarketing as. The academic literature argues that this is normally done when (our emphasis).
A demarketing campaign is usually undertaken via increasing prices, restricting availability or cutting back on advertising. What if gold and silver naturally (in free markets) act as Giffen Goods in the latter stages of a global debt bubble? To recap, a Giffen Good is one that violates the normal laws of supply and demand with people buying more of the good as its price increases. Intuitively, this makes sense. Rising gold and silver prices should naturally reflect increasing risk to the financial system— especially counterparty risk since gold and silver bullion are the only financial assets which have none (i.e. they are not somebody else's liability). Following this argument, if gold has Giffen Good characteristics, the best way to reduce demand from western investors (eastern investors have a natural affinity for gold) would be to reduce the gold price. The point being that any sustained demand for physical bullion from the enormous pools of capital in the western world would hasten the inevitable onset of supply shortage. It's reminiscent of what happened in the prelude to the end of gold's bear market in the 1990s. This was from a famous (in gold market circles), but anonymous, source on western tactics at the time. "(They) needed to keep the price of gold down so it could flow where they needed it to flow. The key to free up gold was simple. The western public will not hold an asset that is going nowhere." This discussion about demarketing in conditions of limited supply raise another point which seems to have gone unnoticed. It's become alarmingly clear in recent months how liquidity on the downside is drying up in many markets, with Chinese equities being the most grotesque of many examples. In physical gold and silver, we believe the polar opposite is the case, i.e. there is very little liquidity to the upside. It is impossible to model supply and demand for gold due to the extreme stock-to-flow ratio which renders it entirely different from any commodity (although gold is money not a commodity).That doesn't stop most gold analysts, however. Nevertheless, there are ways to gauge the strength of the physical gold demand. Firstly, by comparing the spot price with the near-month future, i.e. what's known as the gold basis. Given its stock-to-flow ratio, the gold price should always trade in contango, i.e. with the near-month future at a premium to spot (positive basis). If gold is in backwardation (negative basis), there is a "free profit" for speculators from selling spot gold and buying the near-month future and taking delivery (SINCE SUPPLY SHOULD NEVER BE A CONSTRAINT). Backwardation in gold should be arbitraged away unless speculators are nervous about the availability of physical supply (IF OFFERS OF PHYSICAL GOLD ARE WITHHELD AT A PREVAILING PRICE WHICH IS DEEMED TOO LOW BY MARKET PARTICIPANTS). The chart below shows that gold has spent much of the time in backwardation since 2013.
This was Professor Antal Fekete of Fekete Research writing in 2006. "We may grant that gold futures trading has materially added to the longevity of the regime of irredeemable currency. But while the central bankers are buying time, sand in the hour-glass of the gold basis keeps trickling down. When it runs out, the trickle of cash gold from warehouses will have become an avalanche that could no longer be stopped." The run on gold has not reached avalanche scale yet, but it's picking up. While physical gold demand can't be measured in aggregate, we track four major identifiable indicators of physical gold demand to get a sense of demand conditions. These are.
The chart below shows that in aggregate these four sources of gold demand alone have exceeded the output of every gold mine in the world on a monthly basis during most of the last year.
Suddenly, the negative gold basis starts to make sense. It's also important to remember that the PBoC has not disclosed its purchases since 2009 (an update is due this year) and does not acquire gold on the SGE. So PBoC purchases would be additional. We should take a moment to explain the significance of withdrawals on the Shanghai Gold Exchange. Under Chinese law, all gold either mined domestically or imported has to be sold through the SGE, which allows the Chinese authorities to monitor non-government gold reserves. Once bars are withdrawn from the SGE, they are not allowed to be redeposited (Article 23 of the SGE rule book). Withdrawn SGE bars which are resold have to be recast and assayed as new bars. This gold is counted as scrap supply. Consequently, SGE withdrawals are a close proxy for incremental Chinese demand. The aggregate of SGE withdrawals was 2,197 tonnes in 2013 and 2,100 tonnes in 2014, which is equivalent to more than 70% of the world's newly mined gold. We just want to emphasise that this is Chinese demand EXCLUDING the PBoC. When China's purchases of copper and other metals were ramping up 50-60% of world supply in the "go-go" years of 2003-07, the investment world was transfixed by the potential of commodity investing in all its forms. This author was a Mining sector analyst at the time. Fast forward today and gold advocates like us are as rare as hen's teeth in today's financial markets. Chinese demand of c.2,000 tonnes was higher than the World Gold Council figure, but was confirmed by official Chinese sources. The China Gold Network reported a speech by the Chairman of the Shanghai Gold Exchange (SGE), Xu Luode, on 15 May 2014 in which he stated. "Xu pointed out that the current gold market, especially the physical gold market, is actually in the East, mainly in China. Last year China's own gold-enterprises produced 428 tons; at the same time China imported 1,540 tons of gold, adding up to nearly 2,000 tons." BullionStar's Torgny Persson attended the LBMA forum in Singapore in July 2014. He reported on comments made by Xu Luode in another speech which Koos Jansen published on the "In Gold We Trust" website. "In the speech Mr Xu mentioned and I quote from the official translation in the headphones 'as the Chinese consumption demand of gold hit 2,000 tonnes in 2013." So, in summary, physical gold demand remains strong while the screen price of gold is being shorted into the ground…which brings us to anomalies in the silver market. We don't mean price anomalies…yet.
Instead… Look at how open interest in silver diverged from gold from late-2012 onwards – which is when we believe the short gold/long Nikkei trade was put on. Silver open interest is at an all-time high and note that the scales of the axes on the chart below are (almost) identical.
The open interest of about 200,000 contracts is equivalent to 1.0 BILLION ounces of silver, which is approximately 114% of all silver mined worldwide in 2014. In contrast, the open interest in gold is equivalent to approximately 49% of all gold mined last year. Since almost all the gold ever mined remains as inventory (potential supply) while the majority of silver is consumed in industrial fabrication, there appears to be huge instability coming in the silver market. The second anomaly in the silver market relates to ETF holdings of silver versus gold. Gold peaked at the end of 2012 (!) while silver holdings have remained at high levels despite the sharp fall in the silver price, even more than gold in percentage terms.
It's not easy to reconcile these anomalies, but one explanation is that some entity/entities is/are building a long position in silver. If so, why? What if the "somebody" who is shorting the gold market is hedging themselves in silver, knowing that when these metals turn, the silver price moves like gold on steroids. Let's speculate for a moment. If the silver market had to be "controlled" for as long as possible… a long hedge built up in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 05:40 PM PDT by Gary Christenson, Deviant Investor:
The big picture in simple terms:
Examine the next two graphs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Max Igan : Reclaiming the Earth - Boom Festival Portugal - August 2014 Posted: 14 Jul 2015 02:00 PM PDT Max Igan at Boom Festival Portugal, August 2014 Reclaiming the Earth - Boom Festival Portugal - August 2014 from Max Igan on Vimeo. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Reaping the Whirlwind - The Good Shepherd Posted: 14 Jul 2015 01:40 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 01:08 PM PDT Jim Sinclair’s Commentary Please consider Getting Out of the System (GOTS). It is the one sure thing you must do. Greeks Can't Tap Cash, Gold, Silver In Bank Safety Deposit Boxes July 14th, 2015 GoldCore: Capital controls have been in place in Greece since the start of the month to protect the banks from mass... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Harry Dent: US Is Heading Toward Financial Ruin Economic Collapse Posted: 14 Jul 2015 12:30 PM PDT The governments' need to inflate its way out of the debt hole it's sinking deeper into every day is just another driver of the change to come. Harry S. Dent Harry S. Dent Jr. The Great Depression Ahead Harry S. Dent, Jr. is the Founder and President of the H. S. Dent Foundation, whose... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retired FBI Agent Investigates Sandy Hook: MEGA MASSIVE COVER UP Posted: 14 Jul 2015 12:00 PM PDT Alex Jones talks with Rob Dew whose uncle is former FBI who thinks the Sandy Hook hearing is incredibly fishy. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 11:49 AM PDT Finally, gold is cheap. In its latest fund manager survey, Bank of America Merrill Lynch noted that on a valuation basis, gold was viewed as “undervalued” by fund managers for... Read more > | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Market Meltdown What Really Happened on October 15 Posted: 14 Jul 2015 11:31 AM PDT US Treasury markets, the bedrock of global finance, experienced a wild swing moving from 2.2% to 1.86% and back to 2.14% in a single day. Cardiff Garcia from FT Alphaville speaks to US capital markets reporter Joe Rennison about a report into what happened. The Financial Armageddon... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Water: The New Gold for The NWO Corporations Posted: 14 Jul 2015 11:26 AM PDT Has Wall Street ignored water for too long? Joining Kitco News in studio is Scott Rickards, president and CEO of Waterfunds, and co-inventor of the world's first water cost index. He shares the costs involved with providing clean water to the masses, and how investors can start looking into... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Max Keiser: The Greatest Economic Collapses In History is Coming! Posted: 14 Jul 2015 11:23 AM PDT Max Keiser: The Greatest Economic Collapses In History is Coming! Alex Jones talks with Max Keiser about the coming economic collapse and how oblivious the American public is. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| You Should Be Paying Attention to this Economic Indicator Posted: 14 Jul 2015 09:51 AM PDT This post You Should Be Paying Attention to this Economic Indicator appeared first on Daily Reckoning. Reality set in for investors last week: Tremors are shaking up the global markets. A “no” vote from the Greek referendum last Sunday, the vast stock market selloff in China, and the volatile movements in the price of U.S. crude oil have made it clear the worldwide economy is collectively riding the brakes. The 3.5-hour halt in trading on the NYSE also added to investors’ unease.
Last week on BNN TV, Canada’s leading business station, I explained that an important forward-looking economic indicator we closely monitor at U.S. Global Investors can help make sense of this slowdown: the global manufacturing purchasing managers’ index (PMI), which we’ve written about many times. Coupled with this, our portfolio managers recognize that during highly volatile markets adjusting cash levels in our funds is key. In addition to our own macro models, BCA Research, a highly respected independent research company, pointed out that PMIs in developing economies have plunged to new lows. The International Monetary Fund also revised downward its global growth forecast for 2015. On this account, bad news is good news, as central bankers are scrambling to stimulate economic growth.
As active managers, we have raised our cash levels looking for opportunities in a sloppy market, particularly in our China Region Fund (USCOX). This allows us to mitigate risk and deploy that cash when stocks look attractive per our model, which focuses on factors like high returns on invested capital, sales per share growth and dividend per share growth. The Trend is Your Friend It’s common for investors to look at gross domestic product (GDP) when making decisions about how to deploy capital. Unlike GDP, which looks back or in the rearview mirror, PMI is forward-looking. PMI gathers data such as global output, new orders, exports, prices and employment, making it a reliable indicator for both commodity performance and business activity. ISM, or Manufacturing Institute for Supply Management, is the U.S.-specific calculation of PMI. Take a look at global PMI. It has continued on a three-month downtrend for the month of June.
Similarly, PMI in the U.S. peaked seven months ago but has since been modestly declining. The threat of rising rates has been a contributing factor, and although Federal Reserve Chairwoman Janet Yellen stated Friday that the U.S. is on track to raise rates in September, many agree that this date is too soon.
Card Counting: Using the PMI Pattern to Your Investing Advantage Understanding PMI is one way investors can use patterns to improve their chances of positive returns in the market – just like card counting in a game of Blackjack. When looking at PMIs, a reading of 50 or above indicates manufacturing expansion, while a reading below 50 indicates a slowing economy. PMIs for individual countries like China and Greece are negative right now, meaning that manufacturing activity is contracting. Our investment team’s research has shown that when the one-month reading crossed below the three-month trend, there was a significant probability that materials, energy and commodities would fall six months later. Conversely, when it crossed above, manufacturing activity would ramp up, which greatly improved the performance of commodities such as copper and crude oil, along with the materials and energy sectors.
The Great Shift in Seasonal Oil As I explain in our Managing Expectations whitepaper, using seasonal patterns, along with global PMI, is another way to understand trends in the market and the world at large. Historically, the hurricane season in August/September has shut down the supply of oil offshore, leading to a peak in relative price around this time. But as you can see in the chart below, the new technology of fracking and a corresponding increase of U.S. onshore production, have led to a surplus, drastically shifting the shorter-term seasonal pattern in oil.
Staying Nimble During Changing Landscapes Professor of Mathematics at the University of Oxford, Marcus du Sautoy, said it best: “Although the world looks messy and chaotic, if you translate it into the world of numbers and shapes, patterns emerge and you start to understand why things are the way they are.” The global markets right now indeed appear “messy and chaotic,” but curious investors and fund managers realize that specific tools and patterns help them navigate through the complexity and intensity of constantly changing landscapes. Frank Holmes P.S. Ever wonder how you can make a lot of money from oil without owning a well? Or whether or not you should buy gold and silver? Or is fracking just a flash in the pan? Get insight, insider scoops and actionable investment tips twice a week with Daily Resource Hunter? Just click here for a FREE subscription! The post You Should Be Paying Attention to this Economic Indicator appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Stocks: Earnings Make Charts Posted: 14 Jul 2015 09:08 AM PDT Graceland Update | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash Posted: 14 Jul 2015 08:27 AM PDT This post Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash appeared first on Daily Reckoning. It is perhaps fitting that I am posting a call for a financial crisis that fails to respond to the usual central-planning manipulations on Bastille Day. There are two main lessons for the present era we can draw from the storming of the much-hated Bastille fortress-prison by a revolutionary mob in 1789 Paris:
We are in the endgame of central planners’ attempts to keep the lid on the simmering stew of profound imbalances that characterize the status quo. As I have described many times, Maintaining the Illusion of Stability Now Requires Ever-Greater Extremes of central-planning policies. Mortgage/housing market melting down due to systemic fraud? Nationalize the mortgage market. This is what the federal/Federal Reserve central planners did post-2008, as 97% of all mortgages were guaranteed by federal agencies and the Fed bought $2 trillion of the $10 trillion outstanding mortgages in the U.S.–fully 20% of the entire mortgage market. Stock market bubble popping? Ban short-selling, criminalize negative comments in the media, and withdraw half the companies on the stock exchange from trading. This is partial list of the extremes China’s central planners recently imposed in an panic-driven orgy of central-planning. Another way to understand the increasing reliance on central-planning extremes and their declining effectiveness is diminishing returns: more treasure, capital, time, energy and labor must be expended to keep the status quo from falling off a cliff. The Fatal Disease of the Status Quo: Diminishing Returns All of this extreme malinvestment requires more and more control of the national resources, so liberties must be curtailed and further extremes of centralized power and control must be imposed on the hapless citizenry. The resources of the many are increasingly stripmined to maintain the power and avarice of the few. I recently discussed these trends with Greg Hunter of USAwatchdog.com in a 23-minute video program, Policy Extremes Maintain Illusion of Stability. Let’s review the policy extremes that are yielding diminishing returns: 1. Zero interest rate policy (ZIRP): central planners’ favorite tool for robbing savers and people who have socked away money for their retirement and handing the cash to banks. Now that central bankers have pegged interest rates at zero for 6+ years, there’s nothing left in ZIRP but to push rates into negative territory, i.e. it now costs you money to park your cash in a bank. There’s not much juice left in the zero-interest rate policy, and negative interest rates smack of central-planning desperation–which feeds the very fear and insecurity that trigger panics and crashes. 2. Directly buying assets to prop up failing markets. The Chinese central planners are the latest authorities to reach for the last tool at the bottom of the central-planning toolbox: buying stocks and bonds directly to create the illusion of demand for increasingly shaky financial assets. There are two problems with creating bogus demand by using central bank money to buy stocks and bonds: one is this communicates desperation (see above), and the vast scale of bubblicious debt and equity markets have turned even trillion-dollar purchases by central planners into handfuls of sand thrown at a rising tide. Global equities now total $64 trillion and debt securities (bonds, etc.) total $95 trillion. Global real estate totals $180 trillion. Once the risk-on euphoric trust in central banks’ omnipotence fades and risk-off selling begins in earnest, how much would central banks have to buy of this $340 trillion to keep the bubble inflated? Is it plausible to believe that central planners buying less than 1% of this will stop a landslide of selling? Would even 2% ($7 trillion) make any difference? 3. The grab-bag of desperate policy extremes: banning short-selling, bail-ins (the theft of depositors’ cash to bail out the bankers), partial closure of stock exchanges, currency devaluations, and so on. You can create a good catalog by just listing every action of Chinese central planners in the past month. As noted above, the problem with these policy extremes is that they are so painfully visibly acts of central-planning desperation. If things are as positive as we’re told, then why are central planners forced to impose such absurdly extreme policies to keep the status quo from imploding? If these policies worked, why are interest rates still pegged to zero after six years of “growth” and the inflation of monumental asset bubbles? If these policies don’t work (and they obviously don’t, otherwise the authorities could have normalized interest rates and ceased quantitative easing, stock purchases, plunge protection schemes, etc. many years ago) and central planners keep doing more of what has failed, then the only possible conclusions are:
Ignore the goofy guy in the blue shirt (me) and just ponder the issues Greg raises:
Regards, Charles Hugh Smith P.S. Ever since my first summer job decades ago, I've been chasing financial security. Not win-the-lottery, Bill Gates riches (although it would be nice!), but simply a feeling of financial control. I want my financial worries to if not disappear at least be manageable and comprehensible. And like most of you, the way I've moved toward my goal has always hinged not just on having a job but a career. You don't have to be a financial blogger to know that "having a job" and "having a career" do not mean the same thing today as they did when I first started swinging a hammer for a paycheck. Even the basic concept "getting a job" has changed so radically that jobs–getting and keeping them, and the perceived lack of them–is the number one financial topic among friends, family and for that matter, complete strangers. So I sat down and wrote this book: Get a Job, Build a Real Career and Defy a Bewildering Economy. It details everything I've verified about employment and the economy, and lays out an action plan to get you employed. I am proud of this book. It is the culmination of both my practical work experiences and my financial analysis, and it is a useful, practical, and clarifying read. The post Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 07:25 AM PDT This post Focus Begins to Shift appeared first on Daily Reckoning. Today's Pfennig for your thoughts… Good day, and a Tom terrific Tuesday to you! Well, now that Greece has been given a bridge loan and they won’t be going anywhere (Grexit) and they will remain in the euro (funny, I told you months ago that this would be the end result, but the markets failed to listen). Can we now, finally get back to dealing with other things besides Greek Debt? I’m sure going to try! But first I can’t let it all go just like that yet. I read an article on Google+ the other day, that was quite interesting, in that it talked about how a former employee of the institution that helped Greece hide their debt, suggested to Greece that they start legal action against said institution. The former employee says that the banking giant made as much as $500 Million from the transactions known as “swaps”. Oh, and say it ain’t so, Joe! But “it’s” not completely in the rear view mirror, just yet. But for now, we can say an agreement is in place and that’s a whole lot closer to the finish line than we’ve been in two months of negotiations, eh? The most likely center of focusing will be on China now. The Chinese renminbi has bounced around a bit lately, up one day, down two days, and so on. The Chinese, I’m sure, are just attempting to show the IMF that the currency is stable, even in the face of an economic slowdown… I’m confident that China will figure it all out, and a crash landing will not occur. Yes, I’m about as confident about that, as I was that there would eventually be an 11th hour deal on an agreement with Greece. The euro has backed off the knee jerk reaction to the deal that brought it to 1.12 and change but has now slipped back to the 1.10 handle. German Investor Confidence fell this month, as measured by the think tank ZEW, but it didn’t fall as far as the consensus forecasts, and that was a good piece of news, you know sort of like being handed lemons, but making lemonade. For those of you keeping score at home the index fell from 31.5 to 29.7 (29 was the consensus). But the measure of current conditions actually rose! So, go figure! HA! But, I think all the while the Germans knew that the Greeks would eventually see the Big Picture, and bag their demands. I’ve read some emails from readers, and some news stories suggesting that Germany was the “bad guy” here, that they could have thrown the Greeks a bone, to let them save face back home. I say Hog Wash! Double Hog Wash! The other main focus is going to shift to the falling price of oil again. For a short period of time there, we had a stable oil price around $60. But that stability has given way to a new round of speculation that the price of oil is going to continue to fall. Well, that’s not the way I saw this whole thing going, as I really expected the stable price of oil to remain in place, at least through the summer. And gold is down $4 this morning, as one more of the geopolitical cracks in the global foundation were filled in, as it was announced overnight that a nuclear deal with Iran was in place. I’m going to keep my thoughts on that to myself… but as far as gold is concerned, it’s one more geopolitical problem that has gone away. At least for now, that is… The Aussie dollar (A$) is rallying this morning, after a very strong Business Confidence that rose from 7 in June to 11 in July. The only time this index has been higher was after the last election in Australia (2013) when the bums were thrown out, and the new soon-to-be-considered-to-be bums were voted in. Isn’t that like it is? You love these new guys until they start making life difficult for you, and then they become as bad as the previous bums! Sorry about that road I just went down, I really wanted to make a big deal about the A$ rally this morning, especially since it left the New Zealand dollar/kiwi at the starters blocks. And looky there! No, not there. Over here! HA! But looky there, Bank of England (BOE) Gov. Carney is back out on the newswires telling anyone that will listen, that “time for the first BOE rate increase is moving closer,” and the pound sterling is reacting to the comment by rallying this morning. I guess currency traders love to be fooled more than once. I mean Carney came along with his bag of promises at the Bank of Canada, then at the BOE, and both previous times, the respective currency rallied only then to find that his promises were empty, and the gains were wiped out. So, I guess these guys are ready to swallow that promise, hook, line and sinker once again. You would think that they would learn from previous mistakes. But Noooooooo! A couple of weeks ago, I told you about how the Swiss National Bank (SNB) was attempting to get the franc weaker with verbal intervention. For now, it seems that the SNB Gov. Jordan, has stopped the franc from getting extremely out of hand vs. the euro for now. But that’s the key here, “for now”, because usually the markets get tired of this kind of situation, and usually begin to take on a Central Bank that has been so vociferous about what they plan to do to keep their currency in line. I talked about the drop in the price of oil above, and forgot to go into how it effects the petrol currencies. Yes, I know I’ve done that at least 100 times before, but it has to be repeated because investors want to know why their currencies are weaker. The countries with those Petrol Currencies include: Norway, Canada, Russia, Brazil, U.K., Mexico and so on. You can look at the currency performances of each of these and they tell you the story. Well, the U.S. data cupboard has a big piece of data for us today: June Retail Sales. The BHI indicates to me that this data will return to disappointing, after a surprise, rogue, I might add, strong May Retail Sales. The other thing going on this week that companies that do business overseas will begin to report on their 2nd QTR Earnings, and it will be interesting to see just how many show that the strength in the dollar is hurting their earnings. The BRICS countries met this past weekend at the BRICS Summit in Russia. There’s not been a ton of news coming from the meeting. But I did see this in Google+, and article in the Asia Times: Leaders of the BRICS … launched the New Development Bank, which has taken three years of negotiations to bring to fruition. With about $50 billion in starting capital, the bank is expected to start issuing debt to fund infrastructure projects next year. They also launched a foreign-exchange currency fund of $100 billion. The two new endeavors are statements that the five largest emerging markets are both looking out for each other and, simultaneously, moving away from the western financing institutions of the World Bank and International Monetary Fund. “The BRICS states intend to actively use their own resources and internal resources for development”, Putin said, according to Reuters. “The New (Development) Bank will help finance joint, large-scale projects in transport and energy infrastructure, industrial development”. Birthing the two initiatives in Russia had been Putin’s top priorities. {1} Chuck again. This is getting pretty BIG on the Big Things meter folks. I think that the rest of the world is going to be surprised at the development of these countries and what they bring to the stability of the Globe. The BRICS (Brazil, Russia, India, China, S. Africa) are ready to begin their wrestling match with the U.S. to wrestle away the global financial security, which won’t be won by starting wars. The dollar, the Treasury market, and IMF, are all the ways that the U.S. holds its power. The BRICS have gone after the IMF with the start of their AIIB , and you have to wonder what’s next? That’s it for today… Regards, Chuck Butler P.S. The Daily Pfennig is first published everyday, right here. Editor's Note: Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics. The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. Click here now to sign up for FREE to see what you're missing. The post Focus Begins to Shift appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 06:45 AM PDT This post The OPM Infobomb appeared first on Daily Reckoning. A couple of years ago I wrote a short post InfoBomb. When a government or corporation collects so much information on a citizenry that the unintentional release, theft, or misuse of it is a catastrophic event. The most immediate danger from the government collecting data on us isn’t that they will use it against us… it is from the damage it will do when they inevitably lose control of it. This analysis was spot on: the failure at the Office of Personnel Management (OPM) is an infobomb. Chinese hackers were able to steal records on 18 m current and former government employees + sensitive background information submitted by people applying for security clearances. I believe this infobomb has done catastrophic damage to US security. How? Big data + bots (made smarter via AI) will be able to turn this data into a decisive instrument of warfare. For example: want that guy on the button to stand down? Call him up with a threat to his family. Threaten to release information on him. Etc. Worse, through automation this can be done on a scale and with a speed far, far greater than what old school spooks are capable of. Mark my words: This infobomb is a catastrophe. A catastrophe we won’t understand the consequences of until the US loses the next big conflict. If you are interested in seeing how incompetent, unrepentant, pretentious, and dangerous government bureaucrats can be, watch the Director of OPM Katherine “it’s not my fault” Archuleta in action. Her behavior is very similar to what we saw from the big bankers after the 2008 meltdown. Her recent Congressional testimony is emblematic of why Wall Street bankers and Washington bureaucrats are the #1 threat to our future prosperity:
Regards, John Robb P.S. I originally posted this on my blog, Global Guerrillas, right here.
The post The OPM Infobomb appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 06:42 AM PDT The big picture in simple terms: US national debt is huge, ugly, unpayable, and accelerating higher. Silver Eagles are pretty and are priced low. Silver prices will increase erratically, driven higher by a devalued dollar, along with increasing debt. Silver is currently at the low end of the silver to national debt ratio. Silver is currently at an 81 month cycle low. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greeks Cannot Access Cash, Gold, Silver In Bank Safety Deposit Boxes Posted: 14 Jul 2015 04:59 AM PDT - Greek capital controls also prevent access to contents of safe deposit boxes - Restrictions on safe deposit access doesn’t protect banking system unless contents confiscated - Readers should heed warnings by Marc Faber and Ian Spreadbury of Fidelity - Important to own assets outside banking system and not in bank safe deposit boxes - Own physical bullion in private safety deposit boxes and the safest private vaults | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 14 Jul 2015 04:59 AM PDT MUST READS Oil tumbles on Iran nuclear deal – USA Today Europe Owns This Disaster – Bloomberg Was this humiliation of Greeks really necessary? – Guardian Tsipras Enters Parliament Den to Sell Aid Deal to Greeks – Bloomberg Greece is being treated like a hostile occupied state – Telegraph It Starts: Greeks Rebel Against Bailout, Risk Collapse – Wolf Street Greece's new [...] |
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