Friday, May 27, 2016

Gold World News Flash

Gold World News Flash

Gold Prices Should Rise Above $1900/oz -“Get In Now!”

Posted: 26 May 2016 11:30 PM PDT

by Mark O'Byrne, GoldCore:

Gold prices are likely to rise above $1,900/oz in the next phase of the bull market and investors should "get in now," Chief Market Analyst of the Lindsey Group, Peter Boockvar told CNBC's "Futures Now" yesterday.

"This is just the beginning of a new bull market in the metals," Boockvar believes.

Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as he reasoned that bull markets historically exceed the previous bull market peak at some point.

As Boockvar sees it, it's just a matter of when.

"In order to be bearish on gold, you have to believe that the Fed is going to embark on 100 to 200 basis points of hikes over the next couple of years, which I think is completely unrealistic," added Boockvar. "This is an ideal opportunity for those who have not gotten in."

Citing the relative strength index (RSI), Boockvar said that gold is the most oversold it has been since mid-December. He also added that global interest rates have given trillions of dollars' worth of sovereign bonds a negative yield. Coupled with rising Fed rates, this development would theoretically provide gold investors with positive carry on gold. 

For additional context, Boockvar highlighted the mid-2000s, when the Fed raised the Federal funds rate from 1 percent to 5 percent. During that time, gold went from $400 to $700. The analyst also cited the start of 2016, when Bank of Japan Governor Haruhiko Kuroda adopted negative interest rates. However, the move failed to help the nation achieve stability in its currency.

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The Billionaire Gold Rush

Posted: 26 May 2016 11:01 PM PDT

Guest post from James Cordelaine One of the eternal questions in finance is: When do a few coincidences become a trend, and when does that trend become a stampede you ignore at your own peril?  Well...

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“Risk On” Will Become “Risk Off” – Then Gold and Silver Will Skyrocket

Posted: 26 May 2016 11:00 PM PDT

Regulation – The Hidden Curse

Posted: 26 May 2016 10:30 PM PDT

by Alasdair Macleod, Gold Money:

Regulations are nearly always introduced with the best intentions.

In financial services, they aim to stop unscrupulous brokers and banks from ripping off the public through bad practices. Manufacturers are banned from making products which are dangerous to children, the environment, or which might fail through shoddy workmanship. However, state intervention in commercial matters is based on shaky grounds, consistent with denial of the role and workings of markets, and an overriding desire to interfere.

This contrasts with a true understanding of why free markets work, and the control the consumer exercises over prices and choice, subordinating them to his subjective decisions. Consequently, regulation is based on an unreasoned belief that the individual needs state intervention to ensure standards are maintained, and that bad practices will be eliminated. The incorrect assumption is that free markets encourage unscrupulous manufacturers and service providers to defraud the consumer, when in fact, reputation becomes the paramount relationship in trade.

Because private sector regulation tends towards monopoly practices, the state naturally sees itself as the independent arbiter to ensure fair play. But the state, having initially imposed regulations, finds it very difficult to stop there, with political pressures always to modify and intensify bureaucratic control. Furthermore, unintended consequences of earlier regulations are never corrected by abolishing them. Instead, more layers of regulatory control are introduced in an attempt to address ensuing problems. We therefore drift into greater and greater regulation, without being aware of the true economic cost.

Anyone who favours regulation needs to explain away Germany's post-war success. Her economy had been destroyed, firstly by the Nazi war machine, and then by Allied bombing. We easily forget the state of ruin the country was in, with people in the towns and cities actually starving in the post-war aftermath. The joint British and American military solution was to extend and intensify war-time rationing and throw Marshall aid at the problem.

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Extend and Pretend Continues, Puerto Rico to be Bailed Out

Posted: 26 May 2016 09:30 PM PDT

by Nathan McDonald, Sprott Money:

Puerto Rico is a disaster. This territory of the United States is foregoing its debt payments and in similar style to the Greece crisis, is saying “Too bad, so sad,” to its creditors.

This of course set the market abuzz some weeks ago when the news broke. Yet uncertainty has lingered since the announcement, leaving many to wonder if they were going to be bailed out or not.

Of course, I made the prediction that they, in fact, would. This is the new age of “everything is too big to fail” and no country tied to a major power can be allowed to default, The ramifications and reverberations that would travel through the financial system would be too devastating to the financial elite minds, even if this is what is required to eventually move on to a better, more prosperous system.

This was no wild prediction, and it by no means makes me Nostradamus. The West will simply print more and more money to keep this sinking ship afloat and I, along with many others, know this.

Therefore, it comes as no surprise to learn that in a bi-partisan vote, both the Republican and Democratic party have agreed to bail out Puerto Rico. Yes, that is right – both sides agree that their reckless spending and exploding debt is okay and they need to be saved. No medicine for them!

This is simply more extending and pretending and just further debases the value of the fiat money that underpins this horribly corrupt and out of control monetary system. The U.S. dollar is sadly still the reserve currency of the world. The US government knows this, and it is allowing them to once again abuse this power, to the detriment of the rest of the world that in one way or another must carry the burden of this fiat system.

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LIVE Stream: Donald Trump Rally in Billings, Montana (5-26-16) Rimrock Auto Arena at MetraPark

Posted: 26 May 2016 08:00 PM PDT

Started streaming less than 1 hour ago The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Five Years Later, TEPCO Still Can't Locate 600 Tons Of Melted Radioactive Fuel

Posted: 26 May 2016 07:45 PM PDT

Five years after the Fukushima tragedy, TEPCO's chief of decommissioning Naohiro Masuda admits that the company still has no idea exactly where 600 tons of melted radioactive fuel from three nuclear reactors is located.

As we discussed when we profiled the status of Fukushima on its five year anniversary, the radiation at the plant is still so powerful that it is impossible to get deep enough into the area to find and remove the melted fuel rods. The situation is so severe that even the robots that were sent in to find the highly radioactive fuel have died.

Masuda went on to say that the company still hopes to locate and remove the missing fuel, but the fuel extraction technology is yet to be determined - that assumes they are able to locate it of course.

"It's important to find it as soon as possible. Once we can find out the condition of the melted fuel and identify its location, I believe we can develop the necessary tools to retrieve it." said Masuda.

Of course, this is easier said than done as everyone knows - as RT points out, if the radioactivity flux killed the robots that were sent in to find the material, human exploration is obviously out of the question. The first major hurdle in this effort is to first locate the material, let alone be able to find a way to extract it.

As a reminder, when the 2011 tsunami caused the meltdown, uranium fuel of three power generating reactors gained critical temperature and burnt through the respective reactor pressure vessels, concentrating somewhere on the lower levels of the station that is currently filled with water.

The company's decommission plan implies a 30-40 year period before the consequences of the meltdown are fully eliminated, however experts are skeptical that the technology is sufficient enough right now to deal with the task.

Given the fact that nobody knows where the radioactive fuel is at this point, it may be a possibility that it's left there.

It may be possible that we're never able to remove the fuel. You may just have to wind up leaving it there and somehow entomb it as it is,” said Jaczko, who headed the USNRC at the time of the Fukushima disaster.

As RT explains, melted fuel rods and tons and tons of radioactive water aren't the only issues facing TEPCO's clean-up effort - there is also some 10 million plastic bags full of contaminated soil concentrated in gigantic waste dumps scattered around the devastated nuclear facility.

There is also the cost of the clean up, although given the fact that the BOJ will monetize everything it's much less of an issue. At the time of the disaster the government said it was paying TEPCO $70 billion to enable the company to accomplish its decommissioning - and that number would likely be more than $240 billion over a 40 year time frame.

To give context to the extend of the disaster, here is an eerie video of the area taken by a drone. We can only hope things are able to improve in the efforts to finally get this disaster taken care of.

Gold Price Closed at $1220.40 Down $3.40 or -0.28%

Posted: 26 May 2016 07:41 PM PDT

26-May-16PriceChange% Change
Gold, $/oz1,220.40-3.40-0.28%
Silver, $/oz16.340.080.51%
Gold/Silver Ratio74.697-0.591-0.78%
Silver/Gold Ratio0.01340.00010.79%
S&P 5002,090.10-0.44-0.02%
Dow in GOLD $s301.990.450.15%
Dow in GOLD oz14.610.020.15%
Dow in SILVER oz1,091.22-7.00-0.64%
US Dollar Index95.16-0.18-0.19%

Anybody can read a sign, but not everybody knows what it says.

Today I am looking at gold, silver, the gold/silver ratio, & the US dollar index & wondering hard what it all says. Y'all know that "setting targets" off a chart is an inexact art. And if I were wholly wise, wholly rational, & wholly in control of myself, I would never buy or sell unless I had perfect proof & confirmation. But I ain't, and don't, so I sometimes I guess & hope it works. 

I might be totally wrong, just misreading one day's little rise, so take all else I say against that background. 

What has me head-scratching? Silver gaining while gold drops. This is a correction, for mercy's sake, and in corrections silver is almost always WEAKER than gold, not stronger. Yet we are seeing days where gold falls, but silver gains a few pennies, or falleth not as much. 

The gold/silver ratio witnesses that. 

Coming off that March high at 84.38, the ratio by end-April had fallen to 70.40, down 16.5%. Whew! Silver ran around the track twice while gold puffed & was left behind. Predictably, the ratio corrected upward, but remember that it had broken down out of that long standing channel (green line). Now it has traded up to the channel line, which also just now coincides with the 200 day (roughly one year) moving average, and fallen back. Lost 0.8% today. Hovering above the 20 day moving average. 

Reflect! The peak above 84 signals a seachange in metals. The ratio will continue to FALL generally as silver & gold move up in this next leg of their bull market. For the short term, if the ratio is turning down, silver & gold are about to turn up. 

Ponder the US dollar index. 

Over & over I've observed the same. It has dragged its feet, too embarrassed or too lazy or too puny to rise. It finally rolled over the upper boundary of that downtrending channel that has ruled since February, but like PGT Beauregard refused to take advantage & improve its gains. Today it fell again, down 18 basis points (0.19%) to 95.16, clearly terrified of that 95.50 resistance. Now this ain't the World's End, but it ain't hot work, either. Dollar's rise so far has been weak, & that whispers, if not promises, strength for silver & gold. 

Gold today dropped 3.4% (0.3%) to $1,220.40 on Comex. Silver GAINED 8.3¢ (0.5%) to 1633.8¢. 
Let's go back over this. To correct 38.2% of the December - May rise, gold would have to touch $1,206, silver 1638$ (already hit 1623.8¢). Silver's 50% correction lies at 1587¢. 

Bottom line? I'm not saying the metals' correction has ended, only suspecting they are very close & this correction may prove shallower than I expected. 

After two day's goosing by computerized trading, moonbeams, and Fed pixie dust, stock dropped again today. Dow backed up 23.22 (0.13%) to 17,828.29. S&P500 shaved off 0.44 90.02%) to 2,090.10. I ain't deef. I hear all the folks rooting for stocks to excel their highs made about this time last year. I reckon they long in vain. 

Dow in Gold and Dow in Silver point that way, too. Here's the DiG, and here the DiS, 

Dow in Gold shows gold's weakness relative to silver (you'll see that at once when you look at the DiS). DiG actually re-crossed above the uptrend from the 2011 Low & pierced the downtrend line from December. It remains, however, below the 200 DMA. 

Dow in silver, on the other hand, as the recently stronger metal, remains far below its after-December downtrend. Yep, it corrected up through the 20 & 50 DMA, but also hooked down today. Too early to call them "Turned down", but both are showing a mind to do just that. 

Most hearty thanks to you Brits who answered my query about Brexit. Oddly enough, several responses mentioned the bookies' odds, which giv staying a 70% chance. More than half mentioned that they thought younger people were -- I'll put this less politely than y'all did -- suckers for anti-Brexit propaganda. Most of the responses saw that for the UK to remain in the EU would eventually destroy self-government and, as one man put it, "cede any meaningful sovereignty to an unelected foreign socialist bureaucratic regime." Another said that the Big Money and politicians backed staying, while entrepreneurs & producers wanted out. Another said that however the vote goes, you can't put the toothpaste back into the tube: Brexit will come back, for a long time. 

Sounds like y'all would fit right into Tennessee. 

I drove to Chattanooga today to my foot surgeon, who said everything looked fine. My toe looked like one of those Italian sausages wrapped in string and left to dry in the basement, so I was bewildered -- what would "rotten" look like? I can fell the wire (we say "WAR" around here) in my foot bones. Doesn't altogether hurt, just leaves me real cautious & thoughtful about any sudden moves. Two more weeks and he pulls the wire. I sincerely appreciate y'all's prayers on my behalf. Don't stop yet, I'm still way short on patience.

Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2016, 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.  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.

China's Credit-Fuelled Economy Is "Gyrating Like A Spinning-Top That's Out Of Momentum"

Posted: 26 May 2016 07:15 PM PDT

China's hard landing has already begun, warns economist Richard Duncan as the nation's credit-fuelled economic boom ended in 2015 and a protracted slump lies ahead. He has published a series of videos explaining why China’s economic development model of export-led and investment-driven growth is now in crisis leaving "China’s economy resembles a spinning top that is running out of momentum. It is wobbling and gyrating erratically."



A former Hong Kong-based banking analyst, Duncan has also worked as an analyst at the World Bank, and as global head of investment strategy at ABN AMRO Asset Management in London. He has authored three books on the global economic crisis, including The Dollar Crisis: Causes, Consequences, Cures. He is now chief economist at the Singapore-based hedge fund Blackhorse Asset Management. Duncan was also a speaker at last week’s Asian Leadership Forum in Seoul, South Korea. The South China Morning Post was a media partner to the event. He runs the blog Macro Watch, a subscription-based website providing analysis on global economic trends.

Source: The South China Morning Post

What To Expect From Bilderberg, 2016 - with Dan Dicks & Jeff Berwick

Posted: 26 May 2016 07:00 PM PDT

Josh Sigurdson recently spoke with Dan Dicks of Press For Truth and Jeff Berwick of The Dollar Vigilante and Anarchast about the upcoming Bilderberg Group meeting in Dresden Germany and also went into past meetings and the results that Dan, Jeff, Luke Rudkowski of We Are Change and the late Jim...

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And Another Week Of Selling: "In 2016, Equity Funds Have Lost The Largest Ever Outflow For The Asset Class"

Posted: 26 May 2016 06:42 PM PDT

For many weeks in a row now we have been asking, mostly jokingly, how with everyone else (both retail and "smart money") selling, and with stock buybacks sharply lower in recent months, is the market higher. Specifically, who is buying?

This question is no longer a joke. After this week's 17th consecutive outflow by "smart money" funds (mostly on the back of surging hedge fund redemption), moments ago we got the latest Lipper fund flow data. It was, as BofA put it, "unambiguous risk-off weekly flows."

As BofA also put it: "Equities continued to experience outflows and lost $3.32bn (-0.1%) last week, their 4th consecutive decline. Year-to-date, equity funds have lost $58.6bn (-0.6%), the largest ever dollar outflow in any 22 week period for the asset class"

And yet, despite record retail outflows, despite record smart money selling, despite slowing buybacks, the S&P is not only higher on the year, but just shy off all time highs. At this rate the central banks will really need to reassess their strategy before they lose what little credibility they have left.

Here are the fund flow details from BofA's Michael Contopoulos:

Equities continued to experience outflows and lost $3.32bn (-0.1%) last week, their 4th consecutive decline. Year-to-date, equity funds have lost $58.6bn (-0.6%), the largest ever dollar outflow in any 22 week period for the asset class.




Global high yield saw a 4th consecutive week of outflows, led by non-US HY's $2.2bn (-0.9%) outpour and partially offset by a minor $131mn (+0.1%) inflow into US domiciled high yield funds. The divergence is likely a result of US HY's outperformance since the February 11th lows, outpacing its European counterpart by 6.5% over the 3.5 month span. Also a contributing factor is the ECB announcement of its Corporate Sector Purchase Program, which has caused European investors to pull money out of EU high yield and invest in ECB-eligible high grade corporates. Within the US, ETFs led the inflows (+$180mn, +0.5%) compared to a $49mn outflow (-0.0%) from non-ETFs.



Meanwhile, loans gained $94mn (+0.1%) in net inflows, driven by the greater odds of a summer rate hike. Investment grade corporates continued to benefit from sizeable inflows, gaining $1.29bn (+0.1%) last week for the 14th straight inflow. Other asset classes we track reporting flows last week include EM Debt (-$324mn, -0.1%), munis (+$1.23bn, +0.3%), money markets (+$7.41bn, +0.3%), and commodities (-$271mn, -0.3%). As a whole, fixed income funds recorded a $2.53bn inflow, or +0.1% of AUM

And the global flow details from Michael Hartnett

  • Equities: $9.2bn outflows (7 straight weeks) (note $11.1bn mutual fund outflows partially offset by $1.9bn ETF inflows)
  • Bonds: $2.6bn inflows (inflows in 12 of past 13 weeks)
  • Precious metals: tiny $32mn outflows (only the second week of outflows in 20 weeks)
  • Money-markets: $12.2bn inflows

Fixed Income Flows (Chart 2)

  • First inflows to Govt/Tsy funds in 14 weeks ($0.6bn)
  • Largest outflows from HY bond funds in 15 weeks ($2.1bn)
  • Largest outflows from EM debt funds in 14 weeks ($0.3bn)
  • $2.5bn inflows to IG bond funds (12 straight weeks)
  • $1.2bn inflows to Munis (36 straight weeks)
  • Inflows to TIPS funds in 14 of past 15 weeks ($0.3bn)

Equity Flows (Table 2)

  • Japan: $0.9bn outflows (first outflows in 3 weeks)
  • Europe: $3.3bn outflows (16 straight weeks)
  • EM: $2.0bn outflows (4 straight weeks)
  • US: $1.1bn outflows (outflows in 6 of past 7 weeks)
  • By sector, first outflows from REITs in 14 weeks ($0.2bn); largest financials inflows in
  • 5 months ($0.5bn); 6 straight weeks of tech outflows ($0.4bn)

To summarize: everything except ETFs was sold in the past week; while global equity outflows in 2016 are now at a record high $105 billion for the 22 week period.

It`s A Technological Arm`s Race (Video)

Posted: 26 May 2016 06:38 PM PDT

By EconMatters


I have made some changes to my Trading Rig Configuration to account for more Natural Gas Trading, the US Dollar Index, the VIX and Bonds.

© EconMatters All Rights Reserved | Facebook | Twitter | YouTube | Email Digest | Kindle   

Examining American Exceptionalism

Posted: 26 May 2016 06:15 PM PDT

Submitted by Stephen Bergstrom via The Saker blog,

On the surface, American exceptionalism appears to represent a boldly-stated concept but when contrasted to the subtleties of personal experience, the lessons and flow of history and individual geographically-rooted place, horribly small-minded and delusional, conceivable only as a statement by a crazed, power-hungry overlord to an underling.

Synchronized beautifully in 2004 by a senior aide to Bush Jr. to Pulitzer Prize winning journalist Ron Suskind writing in the New York Times Magazine, American Exceptionalism is,

”…an empire now, and when we act, we create our own reality. And while you’re studying that reality — judiciously, as you will — we’ll act again, creating other new realities, which you can study too, and that’s how things will sort out. We’re history’s actors . . . and you, all of you, will be left to just study what we do…” (

To begin examination, let’s take a closer look at basic definitions (courtesy of Merriam-Webster).


  1. not usual
  2. unusual or uncommon
  3. unusually good


  1. the act, practice, or process of doing something
  2. behavior like that of a specified kind of person or thing
  3. unfair treatment of a group of people who have a particular quality


  1. the condition of being different from the norm; also
  2. a theory expounding the exceptionalism especially of a nation or region

Combining the above, we realize that exceptionalism equates to perception or a perceiving of self that endows the perceiver with uncommon power.

In the case of the United States, seeming high-level leadership self-perceives that the U.S. is “exceptional” (i.e., unusual or unusually good in possession of the ability to act) and does not need to conform to normal rules or general principles. In worldly terms, the U.S. exits the brotherhood of nations and is empire among middling servant states.

Voicing American Exceptionalism

U.S. President Barack Obama speaking at the 2009 NATO Summit, Strasbourg, France,

“I believe in American exceptionalism…we have a core set of values that are enshrined in our Constitution, in our body of law, in our democratic practices, in our belief in free speech and equality, that, though imperfect, are exceptional…”

U.S. President Barack Obama speaking to West Point’s graduating class 2014,

“America must always lead on the world stage…The United States is the one indispensable nation…I believe in American exceptionalism with every fabric of my being…”

Then actor and to-be President, Ronald Reagan at the First Conservative Political Action Conference, 1974,

“…We cannot escape our destiny, nor should we try to do so. The leadership of the free world was thrust upon us two centuries ago in that little hall of Philadelphia. In the days following World War II, when the economic strength and power of America was all that stood between the world and the return to the dark ages, Pope Pius XII said, ‘The American people have a great genius for splendid and unselfish actions. Into the hands of America God has placed the destinies of an afflicted mankind.’


We are indeed, and we are today, the last best hope of man on earth.”


The City on the Hill: Finding the Roots to American Exceptionalism

First Governor of the Massachusetts Bay Colony John Winthrop (1588-1649) represented early American Puritanical Tradition. Addressing a bevy of puritan emigrants waiting to disembark the Arabella to create the first settlement in what would become the first of the New England states, Winthrop declared,

“…we shall find that the God of Israel is among us, when ten of us shall be able to resist a thousand of our enemies…for we must Consider that we shall be as a City upon a Hill, the eyes of all people are upon us…”

That forenamed city destined to be recast time and again by America’s political leadership and undoubtedly favored by those behind that leadership, first by Reagan in his same above speech;

“Standing on the tiny deck of the Arabella in 1630 off the Massachusetts coast, John Winthrop said, ‘We will be as a city upon a hill. The eyes of all people are upon us, so that if we deal falsely with our God in this work we have undertaken and so cause Him to withdraw His present help from us, we shall be made a story and a byword throughout the world.’ Well, we have not dealt falsely with our God…”

President-elect John F. Kennedy said, in an address to the Massachusetts Legislature on January 9, 1961,

“During the last 60 days I have been engaged in the task of constructing an administration…. I have been guided by the standard John Winthrop set before his shipmates on the flagship Arabella [sic] 331 years ago, as they, too, faced the task of building a government on a new and perilous frontier. ‘We must always consider,’ he said, ‘that we shall be as a city upon a hill—the eyes of all people are upon us.’”

From George H. W. Bush’s “thousand points of light” to Bill Clinton’s “America has a special role in the eyes of God” to John Kerry’s “…we have moved closer to the America we can become – for our own people, for the country, and for all the world…”, to lesser weighted John Bolton’s “The most important thing you need is a president who is proud of the United States of America, who believes in American exceptionalism” to Condy Rice’s, “When the world looks to America, they look to us because we are the most successful economic and political experiment in human history. That is the true basis of American exceptionalism…” special effort has been made to convince America she is biblically-blessed and exceptional.


A Truth Hidden, Half Told

But conviction does not always mesh with contradiction nor will those convicted remain so in the face of evidence, direct personal experience and the geography of place.

Alexis de Tocqueville was one. The son of Norman aristocrats, de Tocqueville lives a short life. Born in Paris, July 29th, 1805, he travels to America in 1831 and publishes the tome upon which his fame rests, Democracy in America, in the year of his thirtieth birthday, 1835 and in which he observed that America was creating ”…a distinct species of mankind…(

But in what ways distinct?

In Tocqueville’s eyes, Americans will be birthed first by mindset in the Winthropian, “… Puritanical origin…” and meshed then with “…exclusively commercial habits…”

And in what ways convicted?

The American, this distinct species of mankind, de Tocqueville asserts will become convicted, will become aware of their personal distinctiveness through uniqueness of place, through the,

“…country they inhabit which seems to divert their minds from the pursuit of science, literature, and the arts, the proximity of Europe … to fix the mind of the American upon purely practical objects. His passions, his wants, his education, and everything about him seem to unite in drawing the native of the United States earthward…” (

And therein lies contradiction and echoes so much of what the world says about America, about despising the policies of a government etched in puritanical righteousness and commercial industry and imported inventiveness that exports war and fiat currency but loving a people contradicted and tempered by place, by the geographical, by the land, by windswept prairies, by three coasts, by 14,000 foot mountaintops, by desert, by waterways, by Great Lakes as big as oceans, by the echo and remaining presence of the country’s native Turtle Island, by the original earth-based inhabitants, by the combined sources of the continent’s non-corporate literature and artistic impulses and the unbidden anti-hero like suspicion, resistance and mockery at the everyday level to technological boondoggle and oversized government.

This Curious Exceptional Dilemma

In the hands of the few, trademarked American Exceptionalism acts as a battering ram, is a corporate brand name front that unites evangelism, militarism and Keynesianism, that installs dictators, that perpetuates privately-owned fiat currencies, that topples the same dictators to create in name-only democracies, that trains militants and insurgents, that funds gladio-styled terrorism, NATO, international banking organizations, the IMF, the World Bank, Export-Import Banks, that emasculates Europe, that fans and funds conflict between installed dictators and in name-only democracies, between insurgents and loyalists, this City on the Hill, these thousand points of light.

But below the surface, this thing about America that is exceptional but not distinct from other cultures, her land, her native roots, her resistance by natives long thought exterminated and to be made extinct by cavalries and cannons, by legislation, by armed men riding trains gunning down millions of bison, acts of terrorism and food and shelter-based genocide, by reservation life, this America inspired by the land, by her earthiness, influences this unexceptional America, is non-corporate artistic, makes small press literature, invents good things, does not war, combats big pharma, forced vaccinations, big ag, big biz, big banks, chemtrails, opposes GMOs, opposes false flags, staged shootings and propagandized media, billion dollar political campaigns and privately-owned, fiat-issuing central banks, hallmarks all of Exceptional Empire, writes songs, sings, dances, drums, shapes pottery, tears down pork barrel, fractionalized fiat currency hydro-electric dams, honors the sacred, loves animals, grows gardens, all as if a secret to celebrity-promoted corporate media but known by the hearts of many, by foreign tourists walking through centuries old Santa Fe, traipsing through Navajo country, watching salmon run, peering at petroglyphs in HOPI land, known by creatives, known by seekers, known by the evidence, becomes human, not exceptional.

End Times News 2016 (World Events May 21-25) Prophecy In The News HD

Posted: 26 May 2016 06:00 PM PDT

sad and heartbreaking watching a once God honoring Country fall and the world fall the end times are definitely,without a doubt here. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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India's banks still dragging their feet with gold monetization scheme

Posted: 26 May 2016 05:03 PM PDT

By Sutanuka Ghosal
The Times of India, Mumbai
Friday, May 27, 2016

KOLKATA, India -- The Gold Monetisation Scheme remains a non-starter seven months after its introduction as most banks are yet to enter an agreement with collection centres and refiners, two players in the chain said. The scheme aims to unlock 22,000 tonnes of idle gold lying with Indian households and reduce the country's dependence on imported gold. Banks are not yet ready with their board approvals and GMS software to operate this scheme.

In the earlier gold deposit scheme the government mint took 180 days to settle their refining account but with 0.5 percent interest payout at that time. Banks were not impacted by this delay.

"Under the present GMS, the interest payout begins after 30 days and that too at 3 percent, which may bleed banks in cases where the refining accounts are not settled within seven days' refining time frame stipulated for refineries under GMS," said James Jose, secretary of the Association of Gold Refineries and Mints.

The two operating agencies of the GMS -- collection and purity testing centres -- run by BIS-recognised hallmarking and gold refineries are sitting idle, waiting for better GMS offtake. The GMS has so far mobilised about 2,800 kg of gold, mostly from temples and institutions and this has gone to the Indian government mint.


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Israel Joining ISIS

Posted: 26 May 2016 04:30 PM PDT

In this video Luke Rudkowski talks about the latest developments in the middle east that bring to light many contradictions. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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Full Speech: Donald Trump at the Williston Basin Petroleum Conference

Posted: 26 May 2016 04:00 PM PDT

Thursday, May 26, 2016:Full replay of Donald Trump's remarks at The Williston Basin Petroleum Conference in Bismarck, ND. Full Speech: Donald Trump Speaks in Bismarck, ND (5-26-16) The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries ,...

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Posted: 26 May 2016 03:30 PM PDT

The corporate whore media is cashing in on the American presidential election at your expense. Gerald Celente joins Gary Franchi to tear them to shreds in an epic rant you need to see. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists ,...

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What We Saw At The Violent Trump Rally and Why It Needs To Stop

Posted: 26 May 2016 02:00 PM PDT

What We Saw At The Violent Trump Rally and Why It Needs To Stop The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Miner sees silver price surging ninefold as global gadgets boom

Posted: 26 May 2016 10:02 AM PDT

By Natalie Obiko Pearson
Bloomberg News
Thursday, May 26, 2016

A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal's price ninefold, according to the best-performing producer of the metal.

"For an electronics manufacturer to come directly to us -- that tells me something is changing in the market," said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. "I think we'll see three-digit silver," he said, predicting the metal could surge to $140 an ounce by as early as 2019.

... Dispatch continues below ...


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That's a bold forecast. While silver has rallied 19 percent this year to leapfrog gold as the best-performing precious metal, it settled lower Wednesday at $16.26 an ounce on the Comex in New York and reached a record of just under $50 in 2011. The highest projection among analysts surveyed by Bloomberg is $57 an ounce in 2019.

"That seems aggressive," Dan Denbow, a portfolio manager at the USAA Precious Metals & Minerals Fund in San Antonio, said by e-mail. "There has been a lack of investment in silver exploration, but with significantly higher prices you will get new supplies. The current cost curve wouldn't support that price."

Still, there are other optimistic signs for silver rising. Hedge funds expanded their bullish bets on the metal to an all-time high earlier this month.

Because the commodity holds appeal both as a store of value as well as for its multiple industrial uses, it surged earlier this year on speculation that the pace of U.S. interest-rate hikes will slow and that Chinese manufacturing may be improving.

First Majestic is the second-biggest silver producer in Mexico, which supplies more of the precious metal than any other country. As such, the company has been a primary beneficiary of the silver rally after choosing not to diversify into other metals like many of its peers. The company earns more than 63 percent of its sales from silver and its share price has more than tripled this year, more than any other company on the S&P/TSX Composite Index. The stock rose 2.2 percent to C$14.65 at 9:51 a.m. in Toronto, giving it a market value of C$2.36 billion ($1.82 billion).

While long coveted for use in jewelry, coins and utensils, silver is increasingly in demand for its industrial applications. Last year, about half of global silver consumption came from such use, including mobile phones, flat-panel TVs, solar panels and alloys and solders, according to data compiled by GFMS for the Washington-based Silver Institute.

"Silver is not a precious metal. It's a strategic metal," Neumeyer said in an interview in Vancouver, where the company is based. "Silver is the most electrically conductive material on the planet other than gold, and gold is too expensive to use in circuit boards, solar panels, electric cars. As we electrify the planet, we require more and more silver. There's no substitute for it."

Industrial demand is set to increase, driven by rising incomes and growing penetration of technology in populous, developing nations, as well as thanks to new uses being found for silver's anti-bacterial and reflective properties in everything from hospital paints to Band-Aids to windows.

"Over the next 10 or 20 years, more and more people are going to be using these devices, and silver is a very limited commodity," Neumeyer said. "There's just not a lot of it around."

Use of silver, including investment demand, coin sales and what goes into inventories to settle trades, has outstripped annual supply of the metal in every year since 2000, according to data from GFMS, a research unit of Thomson Reuters Corp. Still, not everyone agrees that the world is headed for a shortage of the metal.

"I would tend to disagree that silver is rarer than thought," David Lennox, a resource analyst at Fat Prophets in Sydney. "Silver cannot be easily substituted but there's been no need as it's in abundance. I'd expect the search for silver would intensify and the search for substitutions would happen long before silver got to" $140 an ounce.

About 50 percent of global demand last year came from price-sensitive sources such as retail coins, jewelry and silverware, which would help curb price increases, said Erica Rannestad, a senior analyst at GFMS in Chicago. "Increased market penetration in emerging economies certainly will result in higher per-capita consumption of silver in industrial uses, but this is over the long run and would not happen overnight."

Neumeyer said his company has no immediate plans for acquisitions, dividends or to take on any debt. The company raised C$57.5 million from a share sale earlier this month. It plans to use funds internally for development and exploration of its mines, which had suffered from underinvestment during the recent downturn. "The capital will be used to look internally," he said.

Neumeyer acknowledges his forecasts aren't always correct. First Majestic had estimated silver at $14 an ounce for this year's budget. "I think I've been wrong every year for the past four or five years."
Still, he's unfazed by his past record.

"The silver rally is just beginning," Neumeyer says. "What we've seen in the last two months is just the beginning of the next bull market."

* * *

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

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Gold Price Forecat Rise Above $1,900/oz -“Get In Now” Says Boockvar

Posted: 26 May 2016 09:19 AM PDT

The gold price is likely to rise above $1,900/oz in the next phase of the bull market and investors should “get in now,” Chief Market Analyst of the Lindsey Group, Peter Boockvar told CNBC’s “Futures Now” yesterday.

‘EU is in process of collapsing on itself’ – Marine Le Pen

Posted: 26 May 2016 08:30 AM PDT

The EU is on the brink of collapse, as two of its main "pillars" are "crumbling" despite the billions of euros spent on keeping the structure from falling, far-right French leader Marine Le Pen told RT, adding that the union would fail if France left it. The Financial Armageddon Economic...

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Mish Interview on OilPrice.Com: “Think Beyond Oil And Gold”

Posted: 26 May 2016 08:30 AM PDT

Global Economic Analysis

The Coming Economic Collapse Of America 2016-2017

Posted: 26 May 2016 08:01 AM PDT

the us government and NATO are doing all the bad things in the world! the us government sends soldiers and weapons to every place in the world that can danger the us dollar! its not about weapons! today you don't need the best weapons to destroy a country! all it takes is to do is an EMP attack...

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The Historic Trend That Shows Gold Is Headed to $4,500 an Ounce

Posted: 26 May 2016 08:00 AM PDT

This post The Historic Trend That Shows Gold Is Headed to $4,500 an Ounce appeared first on Daily Reckoning.

There have been more than a few awful people working on Wall Street and in the financial world. Bernie Madoff comes to mind. He ruined the lives of quite a few people with his colossal Ponzi scheme. The predatory lenders that created the U.S. housing crisis might also qualify.

How about the guys at the top of Enron who sold boatloads of shares while the employee pension plan was directed into the sinking ship?

All of them terrible, but none of them compare to one particular "financial adviser"….Osama bin Laden.

In 2010, bin Laden and al-Qaida came into a $5 million cash windfall. Where did it come from? Ransom proceeds from a kidnapping. Noble work if there ever was some.

Bin Laden had some very specific instructions on where that money should be kept for safe-keeping. He insisted that at least one-third of it be invested in gold.

His exact words:

In terms of buying gold, the overall price trend is upward. Even with occasional drops, in the next few years, the price of gold will probably reach $3,000 an ounce.

OK, enough about bin Laden. Thankfully, he's resting at the bottom of the sea.

However, it is a great time to look at gold…

With the Midas metal just having its best quarterly performance in 30 years (up 17%), there are some indications that $3,000 per ounce (or more) may yet see the light of day.

Gold prices peaked in September 2011 at just under $1,900 an ounce. That peak marked the commencement of a pretty nasty bear market that lopped the price of gold in half.

That peak was 55 months ago.

Interestingly, it seems that 55 months is roughly the median length of a bear market in the price of gold. In the five bear markets that have occurred in gold since 1970, the median duration has been 52 months and the median decline 42.7%.


If we assume that the gold bear actually did end in December 2015, when prices started increasing, that would put that bear market at 52 months and a 44% decline. Those numbers are both nearly right on what we have historically experienced.

If, in fact, we have started a new bull market for gold, our experience since 1970 would suggest we will easily be seeing bin Laden's gold price target of $3,000 per ounce in the coming years.

A bull run that equals the median of the past five (451%) would see gold prices up around $4,500 per ounce in the next three or four years.

Jim Grant Keeps Getting Things Right

My personal favorite way to invest my money has been real estate. There are just so many things to like about it:

  • Reliable cash flow
  • Protection against inflation
  • No risk of technological obsolescence
  • Tax efficiency
  • Can be sensibly borrowed against.

Today, though, as a Canadian, I am faced with a problem. I think that the real estate up here is just too expensive to buy. I've benefitted from the price appreciation with the real estate I own, but incredibly low interest rates have pushed those prices to unreasonable levels.

One of my favorite investing thinkers, Jim Grant, explains what has happened to Canada's real estate, amongst other things, very clearly:

[Central bankers] pull forward the fun things like consumption and push out in time the bad, necessary things like corporate failure. So perhaps now the good stuff pulled forward is ending and the bad stuff pushed out is upon us.

Housing prices that we should not have seen for many years are upon many of us up here in Canada. Those prices have been pulled forward. It is amazing how big of a mortgage you can afford when interest rates are a third of the historical average.

Grant was referring to Canada's real estate specifically, but his explanation applies to gold, too.

For the last several years, Grant has been very bullish, and therefore wrong, about gold prices. Based on the data presented above, it is quite likely that he is about to become very right.

He usually is.

You may have followed the shocking collapse of Valeant Pharmaceuticals in recent months. From $260 per share, Valeant is now fighting to hold $25.

A lot of pretty sharp investors have been burned badly by this one. Back in 2014, Jim Grant was telling people to stay away from Valeant and that shorting it could be a very profitable venture.

Grant was very right about Valeant, but for the better part of 18 months, he looked very wrong. From his initial bearish call on Valeant, the stock is down 80%, but in the first 18 months after his call, it was up almost 70%.

Mr. Grant had to endure a lot of pain before being proven correct. And for the past four-plus years, Grant has been very wrong about gold.

His message, though, has not ever waivered during this time. Grant has repeatedly stated that while he did not understand why gold was falling, he absolutely knew that all of the elements were in place for gold prices to rise.

My point to all of this is that Jim Grant and a few other very smart investors have a habit of being proven right over time. It often takes patience for what they are predicting to occur, but it usually happens.

Grant himself can be credited with:

  • Calling Treasury bonds a screaming buy when they were yielding 13% in the early 1980s. The rest of the market was screaming then too, but the market was screaming that "Cash is trash" and that everyone should take no part in currency-based investments.
  • It took some time, but Grant was proven correct about Treasuries.
  • In 1999, when tech stocks were at absurd valuations, Grant said, "Great booms… produce large abuses, which usually do not seem abusive until after the up cycle ends." He had been trying to convince people to avoid the tech sector since 1997.
  • It took some time, but Grant was proven correct about the tech bubble.
  • Starting in 2005, Grant told his readers to short the securitized lending market, or at the very least avoid exposure to it.
  • It took some time, but Grant was proven correct about the housing market.

With the benefit of hindsight, none of these calls by Grant look particularly difficult to make. At each point in time, though, Grant's opinion was certainly not the norm.

It could very well be that three years from now that it should have been obvious that gold was about to go on a tear in early 2016.

I mean negative interest rates, a flip-flopping Fed and a near decade of financial experimentation would seem to be the perfect recipe for a huge burst in demand for gold, wouldn't it?

Markets can do funny things for longer than we expect, but ultimately, actions do have consequences.


Jody Chudley

Ed. Note/P.S.: Get insight, insider scoops and actionable investment tips twice a week with Daily Resource Hunter! Just click here for a FREE subscription!

The post The Historic Trend That Shows Gold Is Headed to $4,500 an Ounce appeared first on Daily Reckoning.

Trump Gets Delegates Needed for GOP Nomination

Posted: 26 May 2016 07:44 AM PDT

Billionaire businessman Donald Trump has reached the number of delegates needed to clinch the Republican nomination for president. Trump will go on to accept the nomination at the party's national convention in Cleveland. (May 26) The Financial Armageddon Economic Collapse Blog tracks...

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Is The London Gold Bullion Market a Bucket Shop - Video

Posted: 26 May 2016 06:22 AM PDT

It's Thursday May 26 2016 I'm talking about the LBMA today which is the London bullion market Association it's the biggest supposedly physical gold market in the world and the reason I brought in diapers because there's an interesting article in Zero Hedge and it's in tights titled an inside look at the world's biggest paper gold market and there's quite a few infographics in this article and it's very interesting and basically it states that average trading volume in London gold treating calling paper gold as 5,500 tonnes but the LBMA only holds 300 tonnes in its vaults there is more going to London in the Bank of England buy back gold is supposedly their cat by the Bank of England for other world

Think Beyond Oil And Gold: Interview With Mike 'Mish' Shedlock

Posted: 26 May 2016 06:13 AM PDT

This past week I was interviewed by James Stafford at We discussed, oil, gold, lithium, other natural resources, global opportunities, and even biotech plays. Here is the full interview, conducted several days ago.

Thursday Morning Links

Posted: 26 May 2016 04:56 AM PDT

MUST READS World oil prices back at $50 – CNN/Money Oil hits $50 a barrel for first time this year – BBC Japan’s Abe: Commodities signal Lehman-sized meltdown – MarketWatch Millennials’ Most Common Roommates: Their Parents – Atlantic It’s Time to Add Alzheimer's to the List of Global Pandemics – Fiscal Times Insurers seek hefty rate increases for ACA coverage – [...]

Billionaires Are Wrong on Gold

Posted: 26 May 2016 01:49 AM PDT

Recently the mainstream media has reported that several billionaires are concerned about global financial markets and have purchased significant amounts of gold to protect their portfolios. Take Stan Druckenmiller, the famed hedge fund manager who managed money for George Soros as the lead portfolio manager for Quantum Fund. He and Soros famously 'broke the Bank of England' when they shorted the British pound sterling in 1992, reputedly making more than $1 billion in profits. He has reportedly used over $323 million of his own money to invest in gold. This is approximately a 30% allocation in his $1-billion family fund. His belief in gold can be attributed to his criticism of the Federal Reserve's massive money printing and near-zero interest rates. Ongoing low rates will drive both central banks and investors into gold.

How NOT to Invest in the Gold Market

Posted: 26 May 2016 01:45 AM PDT

Investor psychology is an interesting phenomenon to study. Despite the obviously negative implications, a large percentage of investors have a tendency to buy high and sell low. When the price has been rising and everyone is bullish, they decide to jump in near a top. When prices are dropping sharply and everyone is selling, they get fearful and decide to exit their positions near the bottom. Herd mentality, or mob mentality, describes how people are influenced by their peers to adopt certain behaviors, follow trends, and/or purchase items.

Michael Oliver Looks at Gold Miners (XAU) from a Longer Term Perspective

Posted: 26 May 2016 01:30 AM PDT


Breaking News And Best Of The Web

Posted: 26 May 2016 12:00 AM PDT

Dominic Frisby interviews James Rickards, and Greg Hunter finds a new sound money heroine. This morning’s strong US economic reports look much better than they really are. China, pensions and oil making news, as usual. Sprott’s Rick Rule on why the gold bull market is for real, while precious metals continue correcting. Look for next […]

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