Gold World News Flash |
- The Multi-Trillion Dollar Oil Market Swindle
- Another Comex Oddity
- Is Gold a Commodity or Currency?
- Conspiracy…or Madness?
- Connecticut Public Radio program on gold includes GATA secretary
- Google Wallet - The Future of Banking
- Gold Price Tumbled $6.10 or 0.53 Percent Closing at $1,147.20
- Jim Marrs - Corporatism, Adolf Hitler & The FBI
- Paul Singer Blasts "Manipulated" Markets, Says China Collapse "Way Bigger Than Subprime"
- Terrifying Anonymous Message - Red Code - June 2015
- In The News Today
- Return to the Pentagon
- Obama To Introduce Transgender Military
- Opportunity in the Dollar Collapse
- Plowshares Into Swords, and Back Again
- TF Metals Report: Another Comex oddity
- Counter Jade Helm : 911 fiber optic cables intentionally cut
- Gold Daily and Silver Weekly Charts - Pervasive Nonsense
- Why Most of the World’s Banks Are Headed for Collapse
- WTF IS GOING ON IN CALIFORNIA? THIS IS THE MOST IMPORTANT VIDEO YOU WILL EVER SEE ABOUT CALIFORNIA
- Warning Skies Across America? : Prophecy Unfolding Around The World (2015)
- The Coming Financial Collapse Of Great Britain UK Explained
- Drug Cartels and the Politicians Paid Off to Protect Them
- Red Alert -- Jade Helm Begins
- China Surprises The World!
- How to Obtain Silver Coins and Rounds in Short Supply
| The Multi-Trillion Dollar Oil Market Swindle Posted: 16 Jul 2015 12:47 AM PDT In the past, I documented the overstatements by both the IEA and EIA in 2014 & 2015 in terms of supply, inventory and understatements of demand. Others also noticed these distortions and, whether intentional or not, they exist and they are very large in dollar terms. These distortions, which are affecting price through media hype and/or direct/indirect price manipulation, are quite possibly the largest in financial history. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 11:00 PM PDT from TF Metals Report:
Recall that there are “delivery” months on the Comex and, in silver, these months are March, May, July, September and December. It is during these calendar months that the futures contract for the month gets delivered to anyone seeking to take physical delivery of 5,000 ounces of silver per contract. At present, the Comex is allegedly making deliveries for the July 2015 silver contract. This contract expired back on June 29 and began trading “first notice” the next day. This means that anyone still holding a July silver contract as of June 30 needed to have 100% margin in their account, expressing their intent and capability of either taking or making delivery of 5,000 ounces of silver per contract. Usually, over the course of a delivery month, we see deliveries made against the outstanding contracts. Almost without exception, the total number of deliveries comes in below the total number of contracts outstanding at expiration as contracts are closed by: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is Gold a Commodity or Currency? Posted: 15 Jul 2015 11:00 PM PDT SunshineProfits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 07:40 PM PDT by Andrew Hoffman, Miles Franklin:
With Europe on the verge of collapse (Happy Anniversary Mario – three years ago next week, you promised to do "whatever it takes" to save the Euro); the Chinese market amidst a NASDAQ-like freefall – notwithstanding unprecedented government intervention; sovereign nations like Greece and Puerto Rico defaulting on billions of loans – with many others "on deck" for the same – exposing the unprecedented insolvency of the global financial system; QE on steroids throughout much of the "civilized" world (way to go Shinzo, here's what "Abenomics" has wrought on Japan); Central bankers gone mad – from Europe to England to China; imploding currencies; collapsing commodities (with yesterday's Iranian "peace" deal likely to pressure the world's most important commodity for years to come); abysmal economic data, such as plunging U.S. retail sales, small business sentiment, export prices, and industrial production this week alone; declining interest rates despite Whirlybird Janet supposedly ready to tighten monetary policy (LOL); and oh yeah, a Greek "deal" that may not even be ratified (is anyone watching National Bank of Greece's stock?); the U.S. Mint last week announced it sold out of Silver Eagles – for, I believe, the third time in the past three years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Connecticut Public Radio program on gold includes GATA secretary Posted: 15 Jul 2015 06:01 PM PDT 9p ET Wednesday, July 15, 2015 Dear Friend of GATA and Gold: Connecticut Public Radio's Colin McEnroe Show today discussed gold for 49 minutes, the participants including Matthew Hart, author of "Gold: The Race for the World's Most Seductive Metal"; Kim Fisher, president and CEO of Mel Fisher's Treasures in Key West, Florida, the company that located and salvaged the Spanish treasure ship Atocha; and your secretary/treasurer, who argued that gold is important now mainly as the primary target of central bank market rigging. The program, introduced with a parody of doomsday-style advertising for gold bullion sales, can be heard at Connecticut Public Radio's Internet site here: http://wnpr.org/post/allure-gold-throughout-history-and-modern-age CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT We Are Amid the Biggest Financial Bubble in History; With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong. Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed. Crucial guides to storage in Singapore and Switzerland can be read here: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals. Email the GoldCore team at info@goldcore.com or call our trading desk: UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010. Visit us at: http://www.goldcore.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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Google Wallet - The Future of Banking Posted: 15 Jul 2015 06:00 PM PDT Google Wallet the intermediate babystep into Bitcoin The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Tumbled $6.10 or 0.53 Percent Closing at $1,147.20 Posted: 15 Jul 2015 05:25 PM PDT
The GOLD PRICE remains in the falling wedge I spoke of yesterday, but stabbed into that support line rising gently from the November low. Low came at $1,141.90, close to that $1,130 low. If you're ever going to see that, will probably be tomorrow. The SILVER PRICE fell down out of that little even sided triangle I mentioned yesterday, and hit a low of $14.96. Every reason to expect it will drop back at least briefly to or near the 7 July low at $14.62. Should happen tomorrow. GOLD/SILVER RATIO is at 76.338, not as high as 7 July's 77.084. Oh, it gapped up today, but if silver and gold prices were bottoming here, the ratio would reinforce that with a lower high. Just speculating. Once again, my operating theory is that silver and gold prices are fulfilling cyclical and seasonal lows in this time window, and that will mark the end of the long bear phase from 2011. Alternative interpretation is that I am plumb wrong and silver and gold prices will drop a lot more. I tell you that to make the risk plain, and don't kid yourself. No matter how emphatically anybody argues one interpretation or the other, nobody has a crystal ball. This morning as we were getting ready I said to my wife Susan, "The problem with Greece is government -- everybody has tried to make a nest for himself on the government teat. They're all like pigs feeding on a sow: if nobody feeds the sow, nursing starves her to death." "That's just like the U.S.!" sweet Susan shot back. "Precisely. Between Greece and the US only quantity differs, not quality." Since Bismarck every Western nation has installed the "social[ist] state," which claims to be able to support everyone in infancy, infirmity, and old age and to run the economy. But with a growing number of pigs sucking on the teats year by year, eventually feeding 'em pulls down the sow till she dies. Central banks try to feed the sow paper, but a sow can't thrive on paper. Eventually, nursing all those pigs pulls the sow down so that she starves to death. THIS is the crisis facing Greece and the West, and unless they get those pigs off that sow, she'll die. Until the government teat is taken away from all the parasites and the economy freed from government and central bank control, nothing will improve and the Western economies, including the US, will keep lurching toward destruction. A WARNING FROM GREECE FOR THOSE WHO STILL TRUST BANK SAFETY DEPOSIT BOXES. On 5 July Reuters reported that the Greek Deputy Financial Minister said that part of the measure closing the banks was that "people would also not be allowed to withdraw cash from safe deposit boxes." Why not? You figure it out. Reuters report here, http://reut.rs/1fJOuFn Interpretation from EFT Daily News at http://bit.ly/1I33lr1 Only way to stay out of a bar fight is to stay out of the bar. Y'all remember how to tell when a central bank official is lying, right? Sure, her lips are moving. So, Janet Yellen spoke to congress today, but it was the same old hogwash, every day in every way the economy is getting better and better. Y'all believe that, doncha? Sure, sure. Stocks ran out of gas today, but remain above the 50 DMA. Dow fell 3.41 (0.02%) to 18,050.17 while the S&P500 shaved off 1.55 (0.7%) to 2,107.40. On the silver and gold price plunge the Dow in Gold rose 0.58% to 15.73 ounces. Dow in silver bumped up 1.95% to 1,199.51 oz. I'm cliffhanging. US dollar index rose 50 basis points (0.51%) to 97.29. That almost dispels all doubt. Tomorrow it ought to close above the last high (97.45) to confirm its rally. Really doesn't need any confirmation, though. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jim Marrs - Corporatism, Adolf Hitler & The FBI Posted: 15 Jul 2015 04:38 PM PDT Jim Marrs in the Jeff Rense Show, June 25, 2015."J. Edgar Hoover (FBI) called off all searches for Adolf Hitler in Argentina."Jim Marrs on his new book "Population Control, How Corporate Owners Are Killing Us". The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Paul Singer Blasts "Manipulated" Markets, Says China Collapse "Way Bigger Than Subprime" Posted: 15 Jul 2015 04:10 PM PDT This week, dozens of billionaire fund managers, institutional investors, and financial market luminaries descended on that "iconic flagship of Taj Hotels on New York's Fifth Avenue" The Pierre with a mission to "deliver alpha" for conference host CNBC, a network which, incidentally, very often has a difficult time "finding alpha." On the guest list was Elliott Management's Paul Singer, who was on hand Wednesday to discuss the perils of investing in a world dominated by Keynesian central planners, paper money, the "craziness" of China's margin-fueled equity bubble, and "connecting the dots." Here are some notable bullets via Bloomberg:
And here's a recap, followed by a short video excerpt:
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| Terrifying Anonymous Message - Red Code - June 2015 Posted: 15 Jul 2015 04:00 PM PDT You have to watch this! Something big is going to happen!This is the latest Anonymous message for the public. The concerns expressed in the message are terrifying. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 03:57 PM PDT Jim Sinclair's Commentary The latest from John Williams at www.ShadowStats.com. Last Time Industrial Production Activity Was This Weak, The U.S. Economy Was in Collapse - Second-Quarter Production Contracted at a 1.4% (-1.4%) Annualized Pace, First-Quarter Revised to 0.1% Annualized Gain (Effectively Unchanged) - Annual Production Growth at Recession Level - Production Series Subject to Massive... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 02:23 PM PDT This post Return to the Pentagon appeared first on Daily Reckoning. In my 2011 book, Currency Wars, I gave a detailed description of the first-ever financial war game sponsored by the Department of Defense. This financial war game took place in 2009 at the top-secret Applied Physics Laboratory located about twenty miles north of Washington, D.C. in the Maryland countryside. Unlike typical war games, the "rules of engagement" for this financial exercise did not permit the use of any kinetic weapons such as bombs, missiles or drones. The only weapons allowed were financial instrument including stocks, bonds, currencies, commodities and derivatives. The game was played out over two days in the main War Room of the laboratory using six teams divided into the U.S., China, Russia, Europe, East Asia, and Banks & Hedge Funds. The contestants included about 40 players on the six teams and another 60 participants including uniformed military, civilian defense officials and observers from the Treasury, Federal Reserve, CIA and other government agencies as well as think tanks, universities and financial industry professionals. In that original financial war game, a scenario involving Russia, China, gold and the destruction of the U.S. dollar was played out against a backdrop of geopolitical events including the collapse of North Korea and a threatened Chinese invasion of Taiwan. On May 8, 2015, the Pentagon sponsored a new financial warfare session, which I was also invited to attend. This time the financial war took place inside a secure meeting facility at the Pentagon itself. May 8 was a sobering time to be at the Pentagon because it was V-E Day, the 70th anniversary of Victory in Europe on May 8, 1945. The celebration of victory was muted by the remembrance of the enormous sacrifices at Anzio, D-Day, the Battle of the Bulge, and other battles that led to victory. The Pentagon staged a special flyover using vintage aircraft from the Second World War, known as the Ghost Squadron, which included the only flying B-29 Superfortress bomber, the B-17 Flying Fortress, and P-51 Mustang fighters. It was a warm, beautiful spring day, and we were able to observe the flyover from a pedestrian bridge as we walked to the secure war room. This new financial war game exercise was smaller and more focused than the one in 2009. We had about 20 participants. Our group included representatives from the diplomatic corps, military, think tanks, universities, CIA and the National Security Council. I was one of three individuals from the investment management community. Our scenario this time was not global, but was limited to a confrontation between China and the U.S. involving disputed jurisdiction in the South China Sea. There are six nations that have claims in the South China Sea – China, Taiwan, Philippines, Malaysia, Vietnam and Brunei. These claims overlap to a great extent setting the stage for disputes and possible war. The South China Sea is believed to be rich in oil and natural gas reserves in addition to fishing rights and other natural resources. The surrounding nations dispute certain island groups – the Spratly Islands and the Paracel Islands – and are also using reefs, sunken vessels and landfill to create artificial islands, which they are populating with bases and military garrisons. The U.S. has treaty obligations to the Philippines and Taiwan, which could result in the U.S. becoming engaged militarily in the event of a dispute with China. This volatile mix of disputed claims, natural resources and complex treaty networks has the ingredients needed to escalate into a Third World War. All it would take to start a war is some spark such as a collision at sea or an attack based on mistaken identity or misunderstood intentions. A war there is probably just a matter of time. Our role was not to contemplate the use of aircraft carriers, submarines or missiles in such a confrontation. We were there to consider the use of financial weapons such as disruption of payments systems, cyber-attacks on banks and stock exchanges, and trade sanctions that could cut off supply chains and dry up energy imports. One of the main topics of discussion was the use of sanctions involving access to the Society of Worldwide Interbank Financial Telecommunication, known as SWIFT. Contrary to the assumptions of many, SWIFT is not a bank or a financial institution itself. It is more like a phone company or internet service provider that facilitates communication among its members. SWIFT has over 10,500 banks and asset managers as members and handles over 5 billion messages each year amounting to trillions of dollars of payments from one member to another. SWIFT message traffic is literally the oxygen supply that keeps the global financial system alive. In 2012, the U.S. and its allies were successful in kicking Iranian banks out of the SWIFT system. This was extremely damaging to the Iranian economy and led to hyperinflation, bank runs, instability and social unrest until President Obama eased these sanctions in late 2013. Recently the U.S. Senate has called for the use of SWIFT-related sanctions against Russia. In response, Russia has said that it would regard an effort to ban access to SWIFT as an act of war. In our new financial war game, we asked; what would happen if the roles were reversed? Instead of the U.S. banning its enemies from SWIFT, what if China tried to "de-SWIFT" Taiwan or the Philippines? What if financial weapons developed by the U.S. were adopted by China and turned against the U.S. and its allies? These and other interesting scenarios made for a long and lively day of discussions among our team of experts convened for this exercise in twenty-first century warfare. I learned two lessons on May 8. The first is that when nations engage in financial warfare, individual investors can be collateral damage. If China tries to attack the U.S. by closing the New York Stock Exchange, it will be tens of millions of Americans who will suffer an immediate loss of wealth as prices plunge and accounts are locked-down or frozen. The second lesson was that the future wars will be fought in cyber-space using digital technology applied to payments systems such as SWIFT, FedWire, MasterCard, Visa and Europe's Target2 system. The answer to both threats – collateral damage and digital warfare – is to have some hard assets in physical form that cannot be attacked digitally. Such assets include physical gold and silver, land, buildings, fine art, and rare stamps. These are the things that cannot be erased in a digital attack or frozen when payments systems are disrupted. There is good evidence that Russian and Chinese plutocrats are already moving in this direction with their purchases of Picasso paintings, and high-end condos in Sydney, London and Vancouver. Americans seem more complacent and are mostly locked in to their digital 401(k)s. Some diversification into hard assets seems prudent in light of the emerging threats we discussed inside the Pentagon on V-E Day. Regards, Jim Rickards P.S. 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 Return to the Pentagon appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Obama To Introduce Transgender Military Posted: 15 Jul 2015 02:00 PM PDT On Monday Obama's Defense Secretary said the Pentagon's ban on transgender individuals is outdated and the administration has ordered a study to end the practice. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Opportunity in the Dollar Collapse Posted: 15 Jul 2015 01:54 PM PDT This post Opportunity in the Dollar Collapse appeared first on Daily Reckoning. Wars, even though a major cause of today's mess, continue. Keynesian silliness is persistently followed in Washington. Spend, spend, spend, deficits, deficits, deficits, borrow, borrow, borrow, print, print, print, but do not succumb to seeking or accepting the truth of the calamity that is being manufactured by our monetary and political leaders. The truth is obvious. Yet, the decision makers remain in total denial or ignorance. So the Fed financed wars which satisfy special interests and have nothing to do with national security and proceed unabated. But that will end in time as the dollar system unravels. Then there will be a great opportunity — if our educational effort has been successful in creating enough widespread understanding of the freedom philosophy to rebuild and advance the cause of liberty. While it must be realized that there will always be those seeking wars of aggression, a sound monetary policy coupled with the absence of a central bank would go a long way in diminishing the ability of the warmongers to pursue military operations. The question I am often asked is "why?" Why do our political and intellectual leaders continue policies that defy common sense? My assessment is that it's probably a combination of many reasons. Some people driving US foreign policy sincerely believe that, because of our dominant position in the world, we have a moral obligation to intervene for humanitarian reasons. There are also those who support intervention for much less noble reasons — oil, power, military-industrial complex profits, etc.– and take advantage of the sentiment of the right and left supporters who want to solve problems such as border disputes and chaotic civil unrest within other countries. There are yet others who thrive on chaos and endless wars they see as creating opportunities to remake the world. Some "world remakers" will even go so far as to engineer false flag incidents to help justify war to the people. They will also take ad- vantage to escalate hostilities when blowback and unintended consequences occur and use jingoistic propaganda to support even more war and spending. Our government school system, increasingly an arm of the federal government, has negatively influenced many generations of Americans and especially those now running our federal government, making them more amenable to supporting war. Bad economic policy has provided a major boost to the perpetuation of authoritarian, aggressive foreign policy. Monetary policy has facilitated the finance of all wars since the US entered World War I in 1917, four years after the Fed was established. But the full influence of monetary policy on foreign affairs is much more pervasive and secretive. This became evident from the trillions of dollars of bailouts during the financial crisis of 2008 and 2009. In secret the Fed was able to churn trillions of dollars through the world banking system, not only in America but also in Europe and other parts of the world. Banking is now global in nature so the bailing out a large bank or corporation has international significance. Many of the funds were even used to directly assist particular countries and other central banks. The effort to do so obviously made little sense for the dollar long term. But, it was said to be in everyone's interest to paper over the crisis and protect the banking system in the short term. During the several decades that I worked on exposing the Fed for all the harm it causes, the information it was most protective of was its foreign operations. Even with the revelations that due to congressional pressure were finally made after the onset of the recent crisis, the Fed never fully explained how the trillions of dollars used to bail out foreign entities, international banks, and foreign countries were actually used. Further, the fact that all this financial activity occurred outside the view of a sleeping Congress is astounding and frightening. The day must come when this power is reined in. Unfortunately, it's not likely to happen before a dollar crisis of major proportion occurs. Although much was learned through congressional inquiry about the massive, secret bailouts, much information is still not available to the people or to the Congress. The secrecy of the Federal Reserve regarding these bailouts begs the question: How active is the Fed in propping up foreign governments, helping war efforts, and secretly funding foreign elections and military coups around the world? There's no way to know how much has occurred in the past or is still happening. Considering the US government's politically-motivated IRS actions, CIA torture programs, NSA mass surveillance, and other scandals, nothing should surprise us. Big government is out of control. The problem of loans, supported by unlimited credit coming out of a Fed computer, that can be used for political and military operations — all outside the appropriation process and oversight of Congress — needs a close assessment. Also, the massive interference in the currency and bond markets in recent years deserves scrutiny. The Fed buys plenty of US debt with newly created credit, but so do other countries. It's quite possible that the credit can literally come from the Fed with a quid pro quo that those who receive it — banks or other countries — then buy Treasury bills to continue the fraudulent system designed to provide false confidence in the dollar as a reserve currency. And it is quite likely that our government and/or the Fed interferes in the gold market to suppress gold's dollar price in an effort to support the dollar on international exchange markets. US bankers today can get "free" dollars at will and can use them to purchase US debt, keep rates low, and boost the dollar all while earning interest on their excess reserves that the Fed generated. It's a con game that cannot last. There will come a day when it's not in the interest of other nations to finance our debt no matter how they get their dollars. These easy loans certainly have not been used to rebuild the American economy. Instead they have given life to the reemergence of a stock bubble, rising prices of houses once again, and a continuation of the bond bubble. But, eventually the markets will rule and force a readjustment. Our trade imbalance and our huge current account deficits prompt foreign holders of dollars and US debt to prop up the system in their own interests. But one should be prepared for the day when their incentive to acquire and hold US dollars disappears. When that happens, the world changes. That process may have already started. Free market advocates rightfully target the Federal Reserve for the economic harm it causes. More people every day are waking up to the fact that the Fed is guilty of creating the economic chaos and that it is unable to rescue us from the dangers that are supposedly caused by the free market. It's not widely known how the Federal Reserve can and has gotten involved in foreign policy through the use of credit in secret. The Fed is constantly involved in the freezing of financial assets of uncooperative nations when directed by Congress, the Treasury, or executive order. What the Fed does at its own discretion and without permission or oversight by the Congress in times of war and peace to help or hurt friends or enemies should also be exposed and prohibited. A policy to achieve peace and prosperity will never be fully realized so long as there is a central bank with secretive power to issue, at will, a fiat currency and to engage in central economic planning by manipulating the market and interest rates and providing benefits to friends. This interference in the financial markets generates so much disequilibrium and distortion. It creates international frictions that frequently lead to war. There are always economic issues involved in war no matter what other issues the people may be concentrating on as a result of propaganda. And these economic issues are strong motivating factors that drive nations to war. The US record for peace since 1913 is, to say the least, dismal. Much of the blame should be laid at the feet of our central bank and its partners in crime. It should not be a surprise to find that the strongest proponents for peace — and thus prosperity — are strongly opposed to the Federal Reserve and central banking. The power to create money out of thin air is so great that it should never be given to the politicians and secretive central bankers. That power will always be abused as the individuals in charge yield to the temptation for legalized counterfeiting in which they can engage. A commodity currency that arises from market forces and without fraud is the monetary system that would give each nation the best chance of working toward peaceful relations. Regards, Ron Paul Editor’s Note: Dr. Paul spent his formative years in the shadows of World War II. In his new book, Swords Into Plowshares, which hits shelves on Friday, he shares a very personal story of life during wartime… and a lifetime of trying to avoid the calamity that has followed. Can the U.S. still turn from endless war and violence to a future of peace and prosperity? Dr. Paul offers one viable alternative, right here. The post Opportunity in the Dollar Collapse appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Plowshares Into Swords, and Back Again Posted: 15 Jul 2015 01:54 PM PDT This post Plowshares Into Swords, and Back Again appeared first on Daily Reckoning. Stocks are up on the day, if barely. Gold's down $5 at writing. In the Mediterranean, the Hellenic Republic is busy mortgaging what little it has left to Germany. "Greece May Have to Sell Islands and Ruins Under Its Bailout Deal," clamors Time. Meanwhile, "the United States may be the next shoe to drop," says colleague Jim Rickards. "The Congressional Budget Office (CBO) now estimates U.S. debt 'held by the public' will be over 100% of GDP by 2039. The last time it was that high was 1946, just after World War II. But that CBO forecast does not include debts owed to Social Security, Medicare, Medicaid, Fannie Mae, Freddie Mac and all of the other government promises. When those are included, the situation is far more dire." To be exact, total U.S. liabilities stand at $210 trillion, as calculated by Laurence Kotlikoff of Boston University. By that accounting, we're not headed toward bankruptcy; we're already broke today. But it's fun to play pretend, and people come to believe whatever they must believe when they must believe it. Like that we're solvent. As long as fantasy is accepted as reality, the empire will play the role it's meant to play. This was the central insight of Addison's best-selling book with Bill Bonner, Empire of Debt. And since an empire's role is to "make the world safe," it’s little surprise the empire is always at war… always propping up the financial system… and always telling people what they can eat, say and do. Yesterday seemed like a rare departure from that role. Seven years ago, bombing Iran over their nuclear program seemed inevitable, yet yesterday, the U.S. came to terms on a peaceful agreement to monitor uranium and centrifuge reduction and then lift sanctions. Donald Trump says the deal is "terrible." But we're not so sure… What we do know is that U.S. defense contractors will reap what John Kerry sowed: $6 billion in military spending, according to yesterday's 5 Min. Forecast, as the Persian Gulf monarchies and Israel shop around for new weapons. (Byron King's on that scene, showing readers how to invest accordingly.) "Rather than 'tilting' toward Iran or Saudi Arabia," Jim Rickards adds, "the U.S. will pursue a traditional balance-of-power approach in which neither the Sunnis nor the Shiites will be allowed to become too strong or too weak." In Havana this past November, we thumbed through a government pamphlet in the Museum of the Revolution bookstore. The cover had the logos of U.S. defense agencies and contractors splattered across the top, with a buff Uncle Sam barging through an explosion, machine gun blazing, like an idiot. Skimming through, we were surprised to see the Castro regime considered America, in retrospect, an international role model until, roughly, the turn of the twentieth century. Thereafter, the book contended, American plowshares turning into swords and squander — especially after WWII. To illustrate the point, annual average U.S. GDP growth between 1949-2009 was 3.3%. Between 1979-2009, that rate fell to 2.7%. From 1989-2009, the average annual growth rate fell to 2.5%. From 1999-2009, it was 1.9%, and then just 0.9% between 2005-2009. Instead of producing, we've spent. Instead of saving, we've borrowed. Instead of minding our business, we've looked for enemies in all the right places. “It is no coincidence,” opines our former employer Ron Paul in his book End the Fed, “that the century of total war coincided with the century of central banking.” Three years after that book was published, on Nov. 14, 2012, on Capitol Hill, I remember sitting behind a desk right past the entrance of 203 Cannon House Office Building, a lowly assistant. The walls were bare… years of paper were in bins waiting to be shredded… phone calls were coming from across the country to pay compliments and adieus… Dr. Paul was on the House floor, delivering his hour-long farewell speech to Congress after 23 years as a member. You could hear him on the office TV… "In many ways, according to conventional wisdom, my off-and-on career in Congress, from 1976-2012, accomplished very little. "No named legislation, no named federal buildings or highways — thank goodness… "In spite of my efforts, the government has grown exponentially, taxes remain excessive and the prolific increase of incomprehensible regulations continues. Wars are constant and pursued without congressional declaration, deficits rise to the sky, poverty is rampant and dependency on the federal government is now worse than anytime in our history. "All this with minimal concerns for the deficits and unfunded liabilities that common sense tells us cannot go on much longer. A grand but never mentioned bipartisan agreement allows for the well-kept secret that keeps the spending going. "One side doesn't give up one penny on military spending, the other side doesn't give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and corporate elite. And the spending continues as the economy weakens and the downward spiral continues. As the government continues fiddling around, our liberties and our wealth burn in the flames of a foreign policy that makes us less safe. "The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke. This has made compromising, just to agree to increase spending, inevitable, since neither side has any intention of cutting spending." Earlier that same year, as part of his presidential bid, he put forward a proposal for the would-be Paul administration: $1 trillion cut from the federal budget in year one, with five Cabinet-level departments eliminated. If only… After leaving Congress, Dr. Paul established the Institute for Peace and Prosperity. This Friday, he's releasing his latest book, Swords into Plowshares, which helps define the mission of the new project. In Plowshares, Dr. Paul relates personal stories during wartime and dares to consider how the U.S. can return to minding its own business… while still fostering economic prosperity, if you can picture such a thing. You'll find an exclusive excerpt Dr. Paul approved for you, right here. In exchange, perhaps you'll consider pre-ordering a copy on Amazon, right here. We've read through an advance copy. It's a good read. Peter Coyne P.S. 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 Plowshares Into Swords, and Back Again appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TF Metals Report: Another Comex oddity Posted: 15 Jul 2015 01:32 PM PDT 4:30p ET Wednesday, July 15, 2015 Dear Friend of GATA and Gold: The TF Metals Report's Turd Ferguson today describes indications of surprisingly strong delivery claims for silver contracts on the New York Commodities Exchange, possibly an indication of tightness in supply. His commentary is headlined "Another Comex Oddity" and it's posted at the TF Metals Report here: http://www.tfmetalsreport.com/blog/7000/another-comex-oddity CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Counter Jade Helm : 911 fiber optic cables intentionally cut Posted: 15 Jul 2015 01:30 PM PDT This is related to their upcoming false flag, They are cutting cables and even damaging local dams, wasting billions of gallons of water..BTW, these are paid vandals which reside in this damn country The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists ,... [[ 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 - Pervasive Nonsense Posted: 15 Jul 2015 01:23 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why Most of the World’s Banks Are Headed for Collapse Posted: 15 Jul 2015 01:03 PM PDT This post Why Most of the World’s Banks Are Headed for Collapse appeared first on Daily Reckoning. You're likely thinking that a discussion of "sound banking" will be a bit boring. Well, banking should be boring. And we're sure officials at central banks all over the world today—many of whom have trouble sleeping—wish it were. This brief article will explain why the world's banking system is unsound, and what differentiates a sound from an unsound bank. I suspect not one person in 1,000 actually understands the difference. As a result, the world's economy is now based upon unsound banks dealing in unsound currencies. Both have degenerated considerably from their origins. Modern banking emerged from the goldsmithing trade of the Middle Ages. Being a goldsmith required a working inventory of precious metal, and managing that inventory profitably required expertise in buying and selling metal and storing it securely. Those capacities segued easily into the business of lending and borrowing gold, which is to say the business of lending and borrowing money. Most people today are only dimly aware that until the early 1930s, gold coins were used in everyday commerce by the general public. In addition, gold backed most national currencies at a fixed rate of convertibility. Banks were just another business—nothing special. They were distinguished from other enterprises only by the fact they stored, lent, and borrowed gold coins, not as a sideline but as a primary business. Bankers had become goldsmiths without the hammers. Bank deposits, until quite recently, fell strictly into two classes, depending on the preference of the depositor and the terms offered by banks: time deposits, and demand deposits. Although the distinction between them has been lost in recent years, respecting the difference is a critical element of sound banking practice. Time Deposits. With a time deposit—a savings account, in essence—a customer contracts to leave his money with the banker for a specified period. In return, he receives a specified fee (interest) for his risk, for his inconvenience, and as consideration for allowing the banker the use of the depositor's money. The banker, secure in knowing he has a specific amount of gold for a specific amount of time, is able to lend it; he'll do so at an interest rate high enough to cover expenses (including the interest promised to the depositor), fund a loan-loss reserve, and if all goes according to plan, make a profit. A time deposit entails a commitment by both parties. The depositor is locked in until the due date. How could a sound banker promise to give a time depositor his money back on demand and without penalty when he's planning to lend it out? In the business of accepting time deposits, a banker is a dealer in credit, acting as an intermediary between lenders and borrowers. To avoid loss, bankers customarily preferred to lend on productive assets, whose earnings offered assurance that the borrower could cover the interest as it came due. And they were willing to lend only a fraction of the value of a pledged asset, to ensure a margin of safety for the principal. And only for a limited time—such as against the harvest of a crop or the sale of an inventory. And finally, only to people of known good character—the first line of defense against fraud. Long-term loans were the province of bond syndicators. That's time deposits. Demand deposits were a completely different matter. Demand Deposits. Demand deposits were so called because, unlike time deposits, they were payable to the customer on demand. These are the basis of checking accounts. The banker doesn't pay interest on the money, because he supposedly never has the use of it; to the contrary, he necessarily charged the depositor a fee for:
An honest banker should no more lend out demand deposit money than Allied Van and Storage should lend out the furniture you've paid it to store. The warehouse receipts for gold were called banknotes. When a government issued them, they were called currency. Gold bullion, gold coinage, banknotes, and currency together constituted the society's supply of transaction media. But its amount was strictly limited by the amount of gold actually available to people. Sound principles of banking are identical to sound principles of warehousing any kind of merchandise, whether it's autos, potatoes, or books. Or money. There's nothing mysterious about sound banking. But banking all over the world has been fundamentally unsound since government-sponsored central banks came to dominate the financial system. Central banks are a linchpin of today's world financial system. By purchasing government debt, banks can allow the state—for a while—to finance its activities without taxation. On the surface, this appears to be a "free lunch." But it's actually quite pernicious and is the engine of currency debasement. Central banks may seem like a permanent part of the cosmic landscape, but in fact they are a recent invention. The US Federal Reserve, for instance, didn't exist before 1913. Unsound Banking Fraud can creep into any business. A banker, seeing other people's gold sitting idle in his vault, might think, "What is the point of taking gold out of the ground from a mine, only to put it back into the ground in a vault?" People are writing checks against it and using his banknotes. But the gold itself seldom moves. A restless banker might conclude that, even though it might be a fraud on depositors (depending on exactly what the bank has promised them), he could easily create lots more banknotes and lend them out, and keep 100% of the interest for himself. Left solely to their own devices, some bankers would try that. But most would be careful not to go too far, since the game would end abruptly if any doubt emerged about the bank's ability to hand over gold on demand. The arrival of central banks eased that fear by introducing a lender of last resort. Because the central bank is always standing by with credit, bankers are free to make promises they know they might not be able to keep on their own. How Banking Works Today In the past, when a bank created too much currency out of nothing, people eventually would notice, and a "bank run" would materialize. But when a central bank authorizes all banks to do the same thing, that's less likely—unless it becomes known that an individual bank has made some really foolish loans. Central banks were originally justified—especially the creation of the Federal Reserve in the US—as a device for economic stability. The occasional chastisement of imprudent bankers and their foolish customers was an excuse to get government into the banking business. As has happened in so many cases, an occasional and local problem was "solved" by making it systemic and housing it in a national institution. It's loosely analogous to the way the government handles the problem of forest fires: extinguishing them quickly provides an immediate and visible benefit. But the delayed and forgotten consequence of doing so is that it allows decades of deadwood to accumulate. Now when a fire starts, it can be a once-in-a-century conflagration. Banking all over the world now operates on a "fractional reserve" system. In our earlier example, our sound banker kept a 100% reserve against demand deposits: he held one ounce of gold in his vault for every one-ounce banknote he issued. And he could only lend the proceeds of time deposits, not demand deposits. A "fractional reserve" system can't work in a free market; it has to be legislated. And it can't work where banknotes are redeemable in a commodity, such as gold; the banknotes have to be "legal tender" or strictly paper money that can be created by fiat. The fractional reserve system is why banking is more profitable than normal businesses. In any industry, rich average returns attract competition, which reduces returns. A banker can lend out a dollar, which a businessman might use to buy a widget. When that seller of the widget re-deposits the dollar, a banker can lend it out at interest again. The good news for the banker is that his earnings are compounded several times over. The bad news is that, because of the pyramided leverage, a default can cascade. In each country, the central bank periodically changes the percentage reserve (theoretically, from 100% down to 0% of deposits) that banks must keep with it, according to how the bureaucrats in charge perceive the state of the economy. In any event, in the US (and actually most everywhere in the world), protection against runs on banks isn't provided by sound practices, but by laws. In 1934, to restore confidence in commercial banks, the US government instituted the Federal Deposit Insurance Corporation (FDIC) deposit insurance in the amount of $2,500 per depositor per bank, eventually raising coverage to today's $250,000. In Europe, €100,000 is the amount guaranteed by the state. FDIC insurance covers about $9.3 trillion of deposits, but the institution has assets of only $25 billion. That's less than one cent on the dollar. I'll be surprised if the FDIC doesn't go bust and need to be recapitalized by the government. That money—many billions—will likely be created out of thin air by selling Treasury debt to the Fed. The fractional reserve banking system, with all of its unfortunate attributes, is critical to the world's financial system as it is currently structured. You can plan your life around the fact the world's governments and central banks will do everything they can to maintain confidence in the financial system. To do so, they must prevent a deflation at all costs. And to do that, they will continue printing up more dollars, pounds, euros, yen, and what-have-you. Regards, Doug Casey P.S. I originally posted this at the International Man, 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 Why Most of the World’s Banks Are Headed for Collapse appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WTF IS GOING ON IN CALIFORNIA? THIS IS THE MOST IMPORTANT VIDEO YOU WILL EVER SEE ABOUT CALIFORNIA Posted: 15 Jul 2015 01:00 PM PDT Please watch and share. Make this video viral. This is everything we have seen and taped over the last year or so. Some are a little older. 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! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warning Skies Across America? : Prophecy Unfolding Around The World (2015) Posted: 15 Jul 2015 12:30 PM PDT July 2015 signs of the times new world order end times big event prophecy has now begun shocking headlines something is going on 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! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Coming Financial Collapse Of Great Britain UK Explained Posted: 15 Jul 2015 11:18 AM PDT The Coming Financial Collapse Of Great Britain UK Explained // Revolutionary Documentaries. There is no precise definition of an economic collapse. The term has been used to describe a broad range of bad economic conditions, ranging from a severe, prolonged depression with high bankruptcy... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Drug Cartels and the Politicians Paid Off to Protect Them Posted: 15 Jul 2015 07:30 AM PDT Drug Cartels and the Politicians Paid Off to Protect Them The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 07:14 AM PDT The multistate operation, codenamed Jade Helm 15, will run through September 15 in Arizona, Florida, Louisiana, Mississippi, New Mexico, Texas, and Utah. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 Jul 2015 07:14 AM PDT This post China Surprises The World! appeared first on Daily Reckoning. Today's Pfennig for your thoughts… Good day, and a Wonderful Wednesday to you! Well, Front and Center this morning, we have news from China that has brought smiles to most of the global growth campers. China printed their 2nd QTR GDP report last night, and China’s economic growth remained at 7%, which was stronger than the estimates of economists that had pegged China’s 2nd QTR GDP at 6.8%… So, not only did China’s economy prove to be resilient, and probably, a benefactor of the stimulus that the Chinese government has injected into the economy, but it beat the estimates, and that, to me, is a good show! I still believe that China’s economy will not collapse, as most economists and analysts believe, and that China will actually see a gradual recovery in the second half of this year, so put that in your pipe and smoke it, economists and analysts! Oh, and the renminbi was allowed to appreciate a bit last night, so we have that going for us today! The other BIG news today is that Fed Chair, Janet Yellen, will make the trek to Capitol Hill and give her semi-annual testimony on the economic outlook. This used to be called the Humphrey-Hawkins Testimony, but that bill that required the Fed Chair to do this twice a year, expired long ago, but the treks to the Hill are still made by the Fed Chair. I wonder if she had to make an edit or two after seeing the rotten Retail Sales for June that printed yesterday? I doubt it. You see, she’s on a mission, like Jake and Elwood, to keep the markets on the edge of their collective seats, and will most likely come out with more of the same hogwash (in my opinion) that the U.S. economy is going to be very strong in the 2nd half of this year, the slowdown through now, was just “transitory”, and she expects to raise rates 2 times this year. That will sink the stock market’s battle ship, but push up the dollar strength. But it’s all smoke and mirrors folks. I’ve said this before so forgive me if I begin to sound like a broken record, but I still don’t see it. I don’t see how the Fed can raise rates in this economic environment, as far as final sales are concerned, which to me is a much better gauge as to how the economy is performing vs. GDP, which as we just saw last year, gets “adjusted” when things do go as those that make the rules, want them to go. And Final Sales since 2007 have averaged 1% growth. But, the Fed has to “save face” with the markets eventually, right? Yes, I do believe that will happen. So, while I say I can’t see the Fed hiking rates in 2015, I will admit that a small 10 or 15 basis points hike just so the Fed can save face with the markets is a strong probability. But not two 25 basis points hikes that total 50 BPS or ½%… Just doesn’t seem as though there’s anything there to back that up, other than words. The Bank of Canada (BOC) meets today, and here’s where the rubber might meet the road, folks. I’m feeling as though, that the BOC Gov. is in the mood to weaken the Canadian dollar/loonie even more than it has weakened already, and he could do that very easily with a rate cut, that would bring the internal rates in Canada to ½%… UGH! But then I warned you all two years ago when Stephen Poloz took the reins of the BOC Governorship from Mark Carney, who left to become the Gov. of the Bank of England, that Poloz came from the Trade side of the government, and my spider sense immediately went crazy, and I pointed out that the trade side guys are always whining and crying about needing a weaker currency. So, who do you think Poloz “sides with” on these calls? I know. UGH! There’s an important piece of the Greek Debt Aid that needs to be resolved today, by 1pm CT, and that is the four pieces of legislation submitted to parliament (Greece) must be passed today. Oh, and did you see that the IMF had something to say about the Agreement? I would think they would be happy as they will get repaid their loans to Greece. But they had to make a comment anyway. The IMF criticized the agreement saying the obvious, but saying it nonetheless, that Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far. Well, you knew that someone other than me was going to point this all out, right? Yes, Greece now owes the Eurozone more than 300 billion euros, that, they will never be able to repay. That’s just my opinion and I could be wrong, but all this agreement has done, is keep Greece in the euro, and kicked the debt can down the road. This was the 3rd “bailout” that Greece has received since 2010. So, in about 3 years, we’ll revisit this horror show of debt. But by then, who knows what will have happened to the financial system of the world? Maybe it will have its own problems as it deals with the weight of all the debt in the world, and then maybe not. I think being aware of all this debt that remains and can never be repaid (in my opinion), is the reason the euro is stuck around 1.10, and can’t find legs to run in either direction. One would have thought that a deal with Greece would allow the euro to break the leg braces is has worn during this whole debacle and start to run like Forest Gump. Run Forest, Run! But unfortunately for the euro, it just took on more debt. And Greece’s debt is the euro’s debt, folks. And I’ve blasted the U.S. debt picture for years, and now I can’t sit idly by and watch the Eurozone do this and not blast them! The U.S. data cupboard has plenty of data on the docket today, starting with June PPI (wholesale inflation), which lately has become a joke just like it’s kissing cousin, CPI (consumer inflation). But other than PPI, we’ll get two of my fave reports — Industrial Production and Capacity Utilization — for June. I don’t look for either of those two to highlight a strong economy. In fact, I wouldn’t be surprised to see them disappoint the expectations. The Fed’s Beige Book will print this afternoon, but trust me on this one, the markets’ focus is going to be on Yellen’s testimony, where she will most likely talk about an improving economy and the need to hike rates. And the Beige Book will be a forgotten thing. Yesterday’s data cupboard had the awful print of Retail Sales, so let’s go to the tape to review that. The BHI was back to being old reliable yesterday. I told you yesterday that the BHI indicated to me that June Retail Sales would be disappointing. I forgot to tell you that they were already expected to be lower than May’s 1.2% gain that was revised downward to 1%… June Retail Sales fell a negative -0.3%… That’s right I said “negative.” Since “consumption” is such an important part of GDP, this news from June has to be cold water thrown at the economists that were singing high praises of the economy last month. And while we’re talking about numbers… I saw some very ugly and scary numbers on Ed Steer’s letter this morning that he took from cnn.com. Get this: the U.S. is facing a $1 trillion pension shortfall! States are short $968 billion for their pension systems, with Illinois, Kentucky, and Connecticut having less than half of their pension programs funded. Illinois is in the hole by more than $100 billion! Then add to the $968 billion shortfall from the states, the debts from local programs, and you get to $1 trillion! OUCH! Who’s going to pay for that? Or, will the people that thought their retirement futures were golden, have to take cuts, like they are going to have to do in Greece? And shifting gears here today… FAO Schwartz is closing their doors today, along with the grocery chain A&P. And the economy is strong? The price of gold is flat this morning, and pretty much ended up flat yesterday too. I have to say that while the cheaper price of gold has allowed many individual investors and Central Banks to add to their hordes of gold, I’m really growing tired of it. And the folks over at Bank of America Merrill Lynch (BAML) released a fund manager survey yesterday that said that for the first time since August 2009, they view gold as undervalued. Gold is nearly 40% below its high back in 2011. That just rattles my chain, folks. But, maybe, just maybe, because you never know, the fund managers will be proven to be correct! That’s it for today, and I hope that you have a Wonderful Wednesday! 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 China Surprises The World! appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How to Obtain Silver Coins and Rounds in Short Supply Posted: 15 Jul 2015 02:47 AM PDT There are two kinds of constraints when it comes to supply in the physical markets, and anyone building a position in physical metal needs to know the difference. The first type is temporary. The other signals a sea-change, the rush for physical metal going mainstream. When it happens, it’ll be “go time” in the physical markets. The time get your hands on products widely available at low premiums will be over. |
I’d like to draw to your attention today to something that relates to the recent stories of “silver supply tightness”. As you know, there is all sorts of anecdotal evidence being reported of retail physical silver supply tightness. I’d like to show you something extremely unusual that may be the first sign of a wholesale supply tightness.
Before I get to today's certain to be "controversial" topic – which may, in the process, be further delayed by a Greek Parliamentary vote, Whirlybird Janet's Humphrey-Hawkins hearing, or any number of black, grey, or white swan news – let's start with the insanity that is the "silver market."
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