Tuesday, June 7, 2016

Gold World News Flash

Gold World News Flash

NWO Planned US Dollar Crash from Inception of Federal Reserve in 1913

Posted: 06 Jun 2016 07:00 PM PDT

This Has NEVER EVER Happened Before At The Comex — Andy Hoffman

Posted: 06 Jun 2016 06:38 PM PDT

by SGT, SGT Report.com:

Last Friday’s NFP report seals the deal, the US economy is on life support and now the Federal Reserve absolutely CANNOT raise interest rates because if they did it would cause “a global currency crisis unlike the world has ever seen” according to Miles Franklin’s Andy Hoffman. And against the backdrop of a crashing US economy that is doing anything BUT “creating” jobs, we have seen inventory levels of precious metals at the Comex crash to an never before seen level. Thanks for joining us as we document the collapse for the first week of June 2016.

Demagoguery, Duopoly, & The Death Of America's Body Politic

Posted: 06 Jun 2016 06:25 PM PDT

Authored by Ben Tanosborn,

It seems such an improbability, impossibility at times, that such a diverse population in ethnicities, races, religions and ideologies be politically housed in two tents.  But this United States of America for all its diversity, and at times forced accommodation, did manage early on in its history to develop an economic critical center of gravity – a large, unprecedented economic marketplace – that kept the nation un-fragmented, magically glued principally because of a single reason: an unrivaled economic prosperity that the United States maintained for its people vis-à-vis other economies in the world. 

However, that unique economic and political America that Alexis de Tocqueville would describe almost two centuries ago [Democracy in America] may have had its incredible seven-generation run, and be now ready for a meltdown; for the patent to that magic glue held by America has now expired, free for all to emulate via globalization.  And, ‘though the international playing field has yet to become competitively flat, we might just be a short generation away from that occurring; and the miracle that once was America could soon become but a memory of recent past.

Poof… goes the American mythic star!  The diamond-studded American exceptionalism, together with the touted and revered American dream – dual virtuosity that we were made to believe came from above… from a god who prejudicially played favoritism on our behalf – are rapidly coming to an end, as we begin to recognize and acknowledge that our lucky star was mainly the result of an unprecedentedly large marketplace that industrious Americans created in their westward territorial expansion… something which de Tocqueville clearly saw and aptly described in the 1820’s.

No matter what politicians of the two hardly distinguishable brands tell us, the future does not bode well for either political party content in alternating their unashamed ineptitude running the nation for as long as most of us can remember for the benefit of a privileged few.  Both Democrats and Republicans, and here we mean the officialdom and not the rank and file, might soon be in for a rude awakening with the exit of politics-as-usual and the disappearance of the newly-birthed nobility in America represented by the parasite political-class which has usurped “the government by the people” in that proclamation of national purpose made by Abraham Lincoln at Gettysburg (1863).   

If politicians were honest, be they apprentices or masters, they wouldn’t be clamoring such ignorant-idiocy during the presidential campaign as expressed in “make America great again (Donald Trump),” or “fighting for us (Hillary Clinton),” but rather spouse more dignified, non-xenophobic slogans, aiming at what has been lacking in our lives: fairness and justice for everyone in America.  But in politics, just as in other aspects of American life, sleaze reigns supreme; honesty and dishonesty so intertwined in our lives that often we have difficulty differentiating between those who commit crimes and their victims; those leaders who have our best interests and welfare at heart, and those paladins of sleaze who politically take advantage of us for their personal enrichment.

The disappearance of that favored economic status which gave Americans a cushion in helping to cope with diversity is already being felt, bringing about both rebuke and remake of politics as we are experiencing them today, with the final rites for two-party politics to take place sooner than anticipated as Republican and Democratic politicians could soon be writing their duopoly obituaries after jointly having placed much of the population in dire straits relative to both the economy and personal safety.

And the different constituencies – not so much their leaders but their memberships – are beginning to question whether their loyalty to either of the two parties have been abused or misused; whether they might have fared better had they taken charge of their own destiny with their own clear advocacies and “in-house” leadership, instead of leaving things in the hands of master politicians who have continually demonstrated to be no patron saints to their memberships, nor strong advocates for their needs.

Demagoguery has ruled the day for blacks, browns and labor unions who have cast their lot with the self-serving leadership of the Democratic Party, all vestiges of progressivism thrown out the window during Bill Clinton’s tenure in the White House; and, similarly, that demagoguery has also applied to fiscal and social conservatives who have rendered homage to a leadership in a Republican Party whose sole advocacy has been the advancement [in money and power] of an elite that has little in common with the highly regarded historical precepts of the Grand Old Party, or ideological conservatism.

It does look as if this presidential election, given both the character and the judgment of the presumptive (and presumptuous) nominees, Donald Trump and Hillary Clinton, could very well be the catalyst for a renovation of our body politic; at least fire that first shot to initiate a race that will overhaul, rapidly and democratically, American politics. 

BREXIT “Yes” Vote Will Collapse EU

Posted: 06 Jun 2016 06:20 PM PDT

June 2016 Web Bot Report Summary: The Panic to Own Gold, Silver & Bitcoin Will GROW

Posted: 06 Jun 2016 05:40 PM PDT

from jsnip4:

3 Ways to Survive in a Declining Economy and Uncertain Times

Posted: 06 Jun 2016 05:30 PM PDT

3 Ways to Survive in a Declining Economy and Uncertain Times by Sofia Adamson June 6, 2016 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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Monckton: It’s Time For ‘Texit’ — Texas Should Secede, Thatcher Advisor Says

Posted: 06 Jun 2016 05:20 PM PDT

by John Griffing, Lew Rockwell:

Lord Christopher Monckton, 3rd Viscount of Brenchley, thinks Texas should secede from the United States. In his native Britain, voters are preparing to decide whether they will remain in the European Union.

Here in the United States, Texas just last month considered putting secession on the ballot. The Republican Party of Texas killed the measure.

This week, Monckton — former adviser to British Prime Minister Margaret Thatcher — pushed for Texas independence in an exclusive interview with The Daily Caller.

Monckton is a prominent conservative voice on issues such as climate change and the possible collapse of the U.S. dollar.

Why does a British political figure advocate Texas secession?

In short, Monckton views Texas as a lifeboat. He believes that America is on the verge of being overrun with Islamic invaders which will be accompanied by "imminent" financial destruction.

He advocates Texas secession, or what he calls "Texit," as a way to preserve the best of America.

Monckton has become a regular presence in Texas conservative politics in recent years. On one occasion, he drew a crowd of over 15,000 to a race track in Houston. The crowd chanted with calls to make him governor of Texas.

Monckton begins his case for secession by highlighting the flaws in the American system:

"The United States Constitution has not proven sufficiently robust against the relentless increase in federal power and wealth at the expense of the states," Monckton said, "and the Supreme Court has increasingly aggrandized itself by inflicting new law on all states."

"Unquestionably," Monckton continued, "the quickest solution to this problem for Texas is to exercise the right of secession, which instantly cuts off altogether the power of the federal government to interfere in Texan affairs."

Read More @ LewRockwell.com

Ben Stein explains why he will vote for Donald Trump

Posted: 06 Jun 2016 05:00 PM PDT

Economist and author Ben Stein on the Trump University lawsuit and why he will vote for Donald Trump. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and...

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Gold Price Closed at $1244.60 up $4.50 or 0.36%

Posted: 06 Jun 2016 04:06 PM PDT

5-Jun-16PriceChange% Change
Gold Price, $/oz1,244.604.500.36%
Silver Price, $/oz16.430.080.50%
Gold/Silver Ratio75.761-0.105-0.14%
Silver/Gold Ratio0.01320.00000.14%
S&P 5002,109.4110.280.49%
Dow in GOLD $s297.640.810.27%
Dow in GOLD oz14.400.040.27%
Dow in SILVER oz1,090.841.460.13%
US Dollar Index93.97-0.05-0.05%

Oh, ho! So many of you visited the website that Dropbox limited access to the podcast I did on David Simpson's Truth About Money Show. Try this one, http://bit.ly/1Uj0ZEw 

Most people would rather appear in public naked than speak in public, so do they fear public speaking. But imagine the worst. Imagine having to speak in public for 30 or 45 minutes without ever saying anything but still sounding coherent. 

That is the task assigned to the Fed's Head Nebbish, Janet Yellen. What she gives out of the curled lips of the right side of her mouth, she taketh immediately away through the curled lips of the left side. Why, she says everything, but she says nothing. I can't decide whether this is genius, incompetence, or moronism. More moronic still are those poor lost souls who hang on her every feckless word as if it really meant something! You may be broke and ugly, stinking and homeless, but you ain't fallen that low yet! Taking Janet Yellen seriously is like taking Moe of the Three Stooges seriously. Impossible for the rational mind: world's largest economy hostage to Curly, Larry, & Moe. 

So Nebbish Janet spoke today to the World Affairs Council in Philadelphia where she said -- are y'all ready? -- nothing. 

I suppose but can't really rouse myself to care that Chatty Janet's speech goosed stocks, although I remain baffled why threatening to raise interest rates would improve the outlook for stocks. It's a fool that seeks logic in a market's head. Dow rose 113.27 (0.64%) to 17,920.33 while the S&P500 gained 10.28 (0.5%) for its highest close (not intraday high) of 2016. I ought to add "until they lose it all & then some tomorrow." 
Stocks are still outlining a head & shoulders top. 'Twill wreak its vengeance.

Wallowing in its shame & weakness, the US dollar index slipped another 5 basis points (0.06%) to 93.97. Let us count the weaknesses. It failed at 95.50+ resistance, it failed to approach its 200 day moving average, it slid a massive 1.61% Friday, it sliced through its 50 & 20 day moving averages, turning momentum down, and it fell through the upper boundary of the downward trending channel it had broken out of in May. Did I forget anything? 

Y'all look for yourselves, http://schrts.co/OkJ5UT

It will take a long time to repair that mess. 

Oil (West Texas Intermediate Crude) has walked through the uptrend line, which also serves as the bottom boundary of a bearish rising wedge. Yet it continueth above its 20 DMA (now $48.18). It ever anything looked ready to full down a manhole, it's oil. http://schrts.co/KvfGnd 

On Comex Gold bumped up $4.50 (0.4%) to $1,244.60. Silver climbed 8.2¢ (0.5%) to 1642.8¢. 
Here hideth the gold chart, http://schrts.co/KvfGnd 

Gold tangled its feet in the entertwined 50 DMA ($1,248.46) & 20 DMA ($1,247.49). It pushed up into them, but couldn't close there. Not sterling, but not fatal, either. On the upside, gold needs to conquer $1,272. Of course, it can't be called "breaking out" until it betters $1,306, he interday high on 1 May. I expect we may be doomed to a couple of months sideways trading before gold seriously rallies. 
Silver's chart is here, with a new trendline added, http://schrts.co/ojdHU4 

Silver couldn't quite close above its 50 DMA (1648¢) & remains a ways below its 20 DMA (1664¢). However, it has snuggled right up to the downtrend line from the 1 May high, which right now the 20DMA is paralleling. Up above, silver must fight through 1690¢ and the 1700s, but the breakout test awaits at 1806¢.

So far nothing contradicts the conclusion that on 1 June we saw the LOWS for silver & gold, and that they will not in the future show those prices again. Me, I'm buying. 

I may be dummer'n e'er a fence post, but I do get tired of the stupidity abounding all around. Christian Science Monitor (Neither "Christian" nor "Scientific") today ran an article, "How will US regulate private space travel?" These people in government & media can only think in terms of how THEY can control things, never in terms of freedom. No private company has even arrived in space yet, but when they get there, bureaucrats & regulations await them. Have these people never read any science fiction? It don't work that way. Besides, by what force will they control it? 

If governments would get out of the way science nerds would be building space ships out of concrete truck mixers and establish two way traffic to the moon in a few years so your grandmama could fly there if she wanted. If government regulates space travel, she won't get there for 300 years.

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.

Bank of Montreal warns against other banks in gold business

Posted: 06 Jun 2016 03:45 PM PDT

6:50p ET Monday, June 6, 2016

Dear Friend of GATA and Gold:

A year ago February, Bank of Montreal announced plans to start a physical gold fund --


-- and today the bank filed a prospectus with the U.S. Securities and Exchange Commission signifying intent to stock the fund with $500 million of gold, to denominate the shares in ounces, to vault the metal at the Royal Canadian Mint, and to give investors the option of withdrawing their investment in real metal:


The prospectus provides a few interesting and even amusing details:

-- It cautions that the "official sector" is active in the gold market and can affect prices, an acknowledgment that will never make it into any reports by mainstream financial news organizations.

... Dispatch continues below ...


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Visit us at www.europesilverbullion.com.

-- The fund will not insure its assets, trusting the Royal Canadian Mint to protect them.

-- The fund is structured separate from the Bank of Montreal so that its assets will not be vulnerable to claims by creditors against the bank.

-- And -- the amusing part -- the fund seeks to eliminate "derivatives risk (i.e., the use of unallocated gold, gold certificates, exchange-traded products, derivatives, financial instruments, or any product that represents encumbered gold)," as well as "'empty vault risk' or gold bullion lending risk (i.e., the practice of the gold custodian lending, pledging, hypothecating, re-hypothecating, or otherwise encumbering any of the investors' underlying gold bullion)."

Imagine -- a bank warning against the shady practices in the gold market of other banks. While that's something else that will never make the mainstream financial news organizations, at least the word is getting around anyway.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

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


Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:


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:


The Benjamin Fulford Report, June 6, 2016

Posted: 06 Jun 2016 03:30 PM PDT

The Benjamin Fulford Report, June 6, 2016 by Benjamin Fulford June 6, 2016 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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Posted: 06 Jun 2016 03:00 PM PDT

FOX NEWS "YOUR WORLD WITH NEIL CAVUTO" 05/26/2016 Venezuela Price of Bag of Corn Flour Soars 900 percent Date: May 27, 2016 The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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Inflation is back, 'stagflation' is coming, Turk tells KWN

Posted: 06 Jun 2016 02:42 PM PDT

5:41p ET Monday, June 6, 2016

Dear Friend of GATA and Gold:

Inflation has come back even as another worldwide recession is beginning, promising a return to the "stagflation" of the 1970s, GoldMoney founder and GATA consultant James Turk tells King World News today. Now as then, Turk adds, gold and silver will offer protection to investors. An excerpt from the interview is posted at the KWN Internet site here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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:


Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:


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


Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:


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:


Illegal immigrants to sign up for Obamacare in California

Posted: 06 Jun 2016 02:30 PM PDT

'Beating Obamacare 2014' author and former New York Lt. Governor Betsy McCaughey weighs in on illegal immigrants signing up for Obamacare in California. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists...

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The Logic of Paper Money, Debt, and Gold

Posted: 06 Jun 2016 02:17 PM PDT

Two red-shouldered hawks are nesting in our backyard along with several squirrels. Hawks hunt squirrels – death from above via flying predators. Conclusion: We will soon have fewer squirrels....

{This is a content summary only. Click on the blog title to continue reading this post, share your comments, browse the website, and more!}

Richard Dawkins 2016 - Sydney - Richard Dawkins Debate

Posted: 06 Jun 2016 02:00 PM PDT

Richard Dawkins 2016 - Sydney by Richard Dawkins Debate 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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An Inside Look at the Reagan Revolution, Part I

Posted: 06 Jun 2016 01:54 PM PDT

This post An Inside Look at the Reagan Revolution, Part I appeared first on Daily Reckoning.

It's an election year, and a fascinating one at that. How can it be anything else when Donald Trump is one of the candidates?

We recently sat down for a special interview with two critical figures from another remarkable election, the 1980 campaign that produced Ronald Reagan.

These two men, Elliott Curson and Jeff Bell, played a pivotal but little known behind-the-scenes role in Reagan's election.  

During Reagan's primary campaign, they produced his legendary campaign ads that vaulted him above the other Republican candidates. Reagan's previous ads had flopped until he brought these two gentlemen aboard. In many ways, they rescued his campaign.

According to Rowland Evans and Robert Novak, two top political commentators of the day, "It is no exaggeration to say that those Curson-Bell spots… were indispensable to Reagan's solution of his basic political and ideological problems — a solution necessary for him to win the presidency."

Others have echoed that same sentiment. Former Treasury Secretary and Secretary of State James Baker among them. Another, Kathleen Jamieson of the famous Annenberg School for Communication, said about Elliott in particular, "For Reagan, Curson was a gift from the gods."

Part I of our full conversation is below. Read on…

A conversation between Brian Maher, Elliott Curson and Jeff Bell

Brian Maher: I now have the pleasure of speaking to the two men who perhaps did more to help Ronald Reagan get elected in 1980 than anyone else. I'm talking about Elliott Curson and Jeff Bell. Theirs is a largely untold story, but an important one.

So, let me take this opportunity to welcome you both to The Daily Reckoning.

Elliott Curson: Thank you very much. It's a pleasure to be here.

Jeff Bell: Yes, I'm glad to join you today.

Brian Maher: By way of background, Elliott is head of Elliott Cursing Advertising in Philadelphia, which was first established in 1963. Elliott is, by all rights, a brilliant media consultant with decades of success to attest to that.

Jeff is a political consultant who was a former presidential speechwriter and aide to Presidents Nixon and Reagan. He's seen it all. He's also run for Senator from New Jersey, first in 1978, when he lost the election to Bill Bradley. But he shook up the Republican establishment by defeating the incumbent Republican senator, Clifford Case I believe it was, to win the party nomination. Jeff ran on a campaign of limited government and lower taxes, which in many ways prefigured Reagan's 1980 presidential campaign. And he recruited Elliott to run his highly effective campaign ads.

Jeff's served as a fellow at the Harvard Institute of Politics and as the DeWitt Wallace Fellow in Communications at the American Enterprise Institute, among others. He's currently policy director at the American Principles Project in Washington, where he headed their “Gold Is Money” project, which advocates a return to the gold standard.

So, with these introductions out of the way, let's talk about how you two gentlemen helped elect Ronald Reagan president of the United States.

Jeff, the Reagan campaign was failing as the 1980 primary campaign took off. The ads they had been running were falling flat. So the Reagan people contacted you, at a fairly late hour, and you suggested that Elliott should be their man, correct?

Jeff Bell: Yes. They showed me an ad that a firm from Madison Avenue had made. It was a terrible ad. They just had Reagan in front of a blackboard with a bunch of little kids. I guess this was to try to combat the age issue because he was running at the age of 69 and he wasn't really saying anything.

It was just an image ad. I told the Reagan people what I thought of it. They said, "How about those ads you did when you ran against Bill Bradley in '78? Would you be willing to make something like that?"

Elliott, you might not even know this, but the other person who wanted to do my '78 campaign after I defeated the incumbent senator, Clifford Case, was Roger Ailes. I chose Elliott. Even though I like Roger Ailes and think he's a very talented maker of television commercials, he's out of that business now, obviously, having started Fox News.

I think they had seen my commercials during the '78 race. I knew all of them because we had all been involved in '76 when Reagan lost the primaries to Ford. I give them credit and Reagan credit for ultimately running on very contrarian ideas that the establishment didn't like.

We lost the general election, but Bill Bradley was going to be a tough opponent to beat, being a very popular former basketball player with the Knicks with a lot of name recognition. That was when the Knicks were good!

Elliott Curson: Also, the '78 campaign was the forerunner to the 1980 campaign. It was basically the same principles.

Jeff Bell: That's right. Elliott was very familiar with these issues. He knew that they could work, if they had a genuine appeal. In '78, these problems had not gotten severe. The inflation that year was about 5% or 6%. By 1980, we were on our second year of double-digit inflation.

Anyway, I called Elliott and we flew out to California. This was January, 1980, a turnaround situation for the campaign. We made the ads after Reagan had already lost to George H.W. Bush in the Iowa caucus. So, the campaign was in some trouble.

We shot the ads over the course of several hours in Santa Monica. Elliott was just absolutely superb, as was Reagan. We did 11 different ads, and Reagan got most of them on the first take. Wouldn't you say, Elliott?

Elliott Curson: Yes, he was very good. He had a star quality and he was a good actor. He felt very comfortable with the copy we've showed him.

It was just the three of us and our crew. Reagan came with his secretary, who left after 20 minutes. Don Regan, who went on to be Reagan's Treasury Secretary and White House Chief of Staff, was also there for a while. But it was mostly just the three of us sitting there casually talking about policy. And nobody interfered.

Jeff and I shot the commercials and Jeff sent them off to Reagan when we were done. Reagan said, "Yup, they're fine." And that was it. There was no committee. There were no meetings. We just shot the ads and that was that. That will never happen again.

Brian Maher: Reagan's previous ads weren't working, as Jeff described. And your ads were widely credited with turning the Reagan campaign around. What did you do turn that changed things so dramatically?

Elliott Curson: Well, essentially, we just let Reagan be Reagan. We cut out all the corny gimmicks that had dominated the previous commercials. No walking along the beach or kissing babies or anything staged. We just put him in front of the camera, wrinkles and all. We didn't use any filters or flattering lighting. We let people see Reagan as he was, and he just spoke from the heart.

Also, we didn't use any slogan for the campaign. We don't need a slogan. Every commercial had Reagan delivering a strong line. It was so strong that I just put the word Reagan on the screen because it was so powerful. There was one ad on leadership. It had an introduction, then Reagan completed the commercial by saying, "We have the talent. We have the drive. We have the imagination. Now what we need is a leadership."

Then we shot one on defense, which opened with footage of the Russian May Day parade. Reagan had a strong program for the military, and he closed with, "It's nice to be liked, but it's more important to be respected."

Then we did an ad on tax cuts. Reagan said, "I didn't always agree with President Kennedy, but when he came out with a 30% tax cut, everybody benefited, even the government gained, since they generated $54 billion in unexpected revenue. If I become president, we're going to do that again."

Each commercial left people with something to think about.

Jeff Bell: We had very little money. I think Elliott did a great job with the lack of money that we had to get some pretty solid production values. We filmed 11 ads for a total of something like $18,000. That's inconceivable today.

But it was all about the messaging. It was pure issue messaging. That's what we wanted to get across. It was the complete opposite of the Madison Avenue ad that they have made, which was all about image. We had Reagan just looking directly at the camera and saying what he believed in. Like Elliott said, we just let Reagan be Reagan.

And the tax ad Elliott mentioned identifying with Kennedy was excellent. It drew in independent voters that weren't necessarily crazy about a right-wing Republican, so identifying with Kennedy was a great thing to do to bring in a lot of Democrats and independents.

Elliott Curson: Focus groups showed that Reagan was the favorite particularly among Democrats. I think that was the first sign that Democrats were crossing over, that there would be a lot of Reagan Democrats.

Here's a funny little story I'd like to mention that says something about Reagan, the man. At one point during the commercials, I told Reagan, "I think a red tie would work better for TV." I happened to have one on, so I gave it to him. Anyway, we wrapped up the shoot and Reagan left. Nancy had called to say they were having company at home or something to that effect.

About 20 minutes later, a Secret Service agent came back to the studio, and I felt, "Oh my God. What's the problem?" He said, "Elliott, I got halfway back and I told Reagan, "Governor, you're wearing Elliott's tie." Reagan then said to him, "Turn around."

I couldn't believe it. Here you have the former California governor and future president, already halfway home to host a dinner party, when he turns around just to return the tie to me. He could have just had someone else return it later on or have someone mail it to me. But he turned the car around. I doubt that would happen today. But that was just the type of person he was. He was just a really decent guy.

Brian Maher: That's amazing. And you're right, I doubt that would happen today. Gentlemen, we talk a lot about gold here at The Daily Reckoning. I don't know how many people remember today, but Reagan wanted to return to a gold standard. In fact, I believe you shot a commercial of him calling for a return to gold. But it never ran, correct?

Jeff Bell: That's correct. And no, it never ran. Reagan believed in the gold standard. He was very interested in it. It was an issue for the first year or two on his administration, when he conducted a Gold Commission. The majority of the Gold Commission recommended against returning to the gold standard. Reagan was able to fix the economy and stop most of inflation without one, but he was very interested in it.

What he said in the ad, which is something I think he always believed, was that we'll never have stable prices until we get back to some form of gold backing for the dollar. He didn't blame labor for inflation. He blamed the government.

Reagan said, "We're never going to get price stability until we return to some form of gold." He didn't say that it was only inflation that was a problem. He said, in effect, that the uncertainty of paper money is a problem in itself, even at times when the dollar is strong. It winds up disrupting the world economy, disrupting the terms of trade. Reagan's message holds up very well to this day.

And here's a little tidbit I think our listeners might find interesting. I don't think too many people know about it. About an hour after he got home after shooting the gold ad, Reagan called me and said, "You know that gold ad, put that off to one side. We've got some people here in California who might be upset about it. But don't erase it." He was clear not to erase it. I never did.

Elliott Curson: He was hesitant about that ad.

Brian Maher: That seems odd. Reagan asked you to hold off on the release of the gold ad because of certain people in California. What was that all about, Jeff?

Jeff Bell: Well, he didn't mention anyone by name, but I think he was talking about Milton Friedman, who was at the Hoover Institution at Stanford at that time.

Friedman was the founder of monetarism who'd won the Nobel Prize in economics. He was a Reagan supporter, but he'd argued that the gold standard was at least partly responsible for the Great Depression. So Friedman would not be in favor of returning to any kind of gold standard. And I don't think Reagan wanted to rock the boat at that time. So he asked me to hold off on it.

Brian Maher: Reagan's lost campaign ad, the one that never aired. I'd love to see that one. And it's still around, right?

Jeff Bell: Yes, it's still around. It never ran until earlier this year when it did appear in ad Elliott did with Ted Cruz. I thought it was an excellent ad, but it didn't get any reinforcement from the Cruz campaign. I give Cruz enormous credit for understanding that the Fed is kind of a Wizard of Oz, standing behind the screen not knowing what they're doing, but he didn't really relate it to the economic situation. He didn't make a strong connection.

Brian Maher: Please tell us a little more about that Cruz ad, Elliott.

Elliott Curson: Well, it opened with Ronald Reagan talking about inflation and going back to the gold standard. Then it said, "Cruz can do it." Then, Cruz talked about monetary policy and it ended with a slide that said, "Finish the Reagan Revolution." It's like Reagan coming back and saying, "Here's my philosophy," and Cruz saying, "That's my philosophy."

We did have a presence in New Hampshire with radio about gold. But Cruz didn't spend anything, an error on his part, not realizing that the early primaries set the tone for the rest of the election.

Brian Maher: So, Reagan had strong feeling about gold, but very few people in the Republican establishment wanted anything to do with it. He couldn't afford to step too far out of line, I suppose. You mentioned Reagan's Gold Commission a second ago, Jeff. Could you talk a bit about that?

Jeff Bell: There was never going to be a chance that the Gold Commission would endorse the gold standard. The establishment prefers not debating to debating, and I think for a good reason on this particular issue.

Donald Regan appointed the committee members. Ron Paul and businessman Lew Lehrman were the only two real gold backers on the gold commission out of 17 members. Most listeners are probably familiar with Ron Paul and his strong belief in gold. Fewer know Lew Lehrman. He probably would have been a great Treasury Secretary, but the establishment sidelined him due to his strong advocacy of gold. He never received an appointment of any kind.

Anna Schwartz, who co-wrote Milton Friedman's book on the monetary policy, was the Executive Director of the Gold Committee in 1981–82. She obviously wasn't a fan of the gold standard. She also wrote the final report. So there wasn't too much hope that that final report was going to do much to change the monetary system.

I think you can also say that George Schultz, who was Treasury Secretary towards the end of the Nixon administration, was also a factor in opposing Reagan's interest in the gold standard.

Under a gold standard, it becomes much more difficult for political elites to run budget deficits. It's interesting to me that the founders never put a balanced budget in the constitution. What they had instead was Article 1 Sections 8 and 10, which mandated gold and silver coins as the final money.

Brian Maher: You mentioned Donald Regan. I dug up a quote from Robert Novak's 2007 autobiography, recounting a conversation from 1986 involving Regan and the president.

Novak asked Reagan: "What ever happened to the gold standard? I thought you supported it."

"Well," the president began and then paused, "I still do support the gold standard, but — " At that point, Reagan was interrupted by his chief of staff, Don Regan. 'Now, Mr. President," said Regan, "we don’t want to get bogged down talking about the gold standard."

"You see?," Reagan said to Novak, his palms uplifted in mock futility, "They just won’t let me have my way."

I think that says it all.

Jeff Bell: Yup, it sure does. I was involved in the efforts after the campaign to try to get Reagan to do something along the lines of gold. He decided not to do it, which I think was a mistake. But it wasn't just the party establishment that's to blame. I also blame our side.

We, the people who were advocating gold, didn't really have our act together. We had disagreements on how we'd get back at gold. We had disagreements on how much of a convertibility element you needed.

I remember Lehrman told me about a conversation he had with Reagan in the early '80s. It might have been 1982. Reagan asked him, "What should the price of gold be?" In other words, what should be the gold dollar parity? Lew didn't give him a direct answer.

I've always felt that was a turning point. If we provided Reagan a clear answer about the right parity, he may have pressed ahead.

The people who were against the gold standard thought it was dangerous or premature. And they definitely had the upper hand among Reagan's advisers. But I believe to this day that Reagan might have overruled them as he did on many other issues if we'd made a more compelling case for gold.

When Reagan truly believed in something, he stood his ground. When the air traffic controllers went on strike, for example, none of his advisers said, "You should fire every air traffic controller who is on strike." They all wanted to water it down, to give the controllers a little more time to come to terms. But Reagan did it anyway because he thou

The Emperors Have No Clothes

Posted: 06 Jun 2016 01:30 PM PDT

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The Real Reason We Have a Welfare State

Posted: 06 Jun 2016 01:28 PM PDT

This post The Real Reason We Have a Welfare State appeared first on Daily Reckoning.

BALTIMORE – Yesterday, the Swiss cast their votes and registered their opinions: "No," they said.

We left off on Friday wondering why something for nothing never works.

 Not as monetary policy. Not as welfare or foreign aid. Not in commerce.

Not never, no how.

Subject to Citizen

But something for nothing is what people most want.

The Swiss voted against awarding all citizens a "universal basic income" of about $30,000 a year, regardless of whether they have work or not. But the idea is unlikely to go away.

Two-thirds of British voters say they are in favor of the idea. And Canada's Ontario province is set to try something similar.

If you've been following these Diary entries, you know how and why we have a welfare state.

It's not because our leaders are more thoughtful and caring than those in the past. Instead, the French and American Revolutions showed the relative greater value of "citizens" over "subjects."

When people thought they were in charge of a government, rather than merely subject to it, they no longer found it absurd to ask not what the government could do for them, but what they could do for it!

The elite, who control the government, had a quick response: You can pay higher taxes!

And you can get yourself blown up in one of our self-serving foreign wars.

Instead of being dragooned to serve in the king's army, in other words, citizens enlisted, willingly. And because their money was now used for only projects that benefited them – as selected by their elected representatives – they'd pay more for them.

At least, that was the theory.

Yes, the voters are a nuisance. Still, it pays to let the masses think they are in charge; you can get more out of them that way.

Birth of the Welfare State

But the new 19th-century citizen now had a rifle as well as a ballot.

And if he could take down George III or Louis XVI, he could bring down any government.

So, it was that, roughly a century after Louis' head rolled, Germany's first chancellor, Otto von Bismarck, figured out how to keep the new citizen docile: Give him something for nothing. Give him a pension!

Through a series of acts in the 1880s, Bismarck's Germany put in place the world's first social welfare state – including health insurance and a public pension program.

If people depended on the feds for their retirement financing, they would go along with almost anything the feds got up to.

This was the origin of what we know as the welfare state – whereby the government collects money from the people and then returns a substantial portion of it to them.

Some get jobs. Some get healthcare benefits. Almost all get pensions.

Today, most governments operate on some version of Bismarck's model – taking money from citizens, but also providing "public" benefits to them.

The model worked beautifully for 100 years.

Politicians, bidding for votes, continually sweetened the deal. Both "liberal" and "conservative," they realized that they had to promise the voters more and more "benefits" to get elected.

Real conservatism (favoring small, limited government) practically disappeared, as the bidding heated up. Politicians promised voters unemployment compensation, medical care, drugs, subsidized housing, and other handouts.

But the more something-for-nothing they were promised, the more they wanted.

"Advance Auctions"

Fortunately, populations and economies were growing fast.

The young worked… and were promised benefits – drugs and pensions – that they could enjoy when they got older.

As long as populations were growing and economies were expanding, the only problem was deciding who should get what.

That's why elections were so important. They were "advance auctions of stolen goods," as Baltimore newspaperman H.L. Mencken famously put it.

But they were auctions of goods that hadn't even been created… let alone stolen.

And now, giving older people something for nothing is running into a problem: There isn't so much to give anymore… and there are a lot more people with their eyes on it.

Public pension systems – such as Social Security in the U.S. – had relatively few beneficiaries before World War II. Now they are swamped by them.

The math no longer works. Instead of getting more out of the welfare state than they paid in, citizens now expect to get less.

Maybe a lot less.

Not only are there more old people, but also the feds have damaged the economy that supports them.


Dumb, pettifogging regulations… special privileges and payoffs… licensing… subsidies.

Everybody's got an angle!

Snake in the Woods

"Bill, I'd like to take away your trees," said Tommy in this Tidewater drawl.

Tommy, as we recently reported, has been working with his bulldozer on our farm in Southern Maryland.

"But it's not like it used to be. Now, you need a permit to take a p***, let alone cut down trees. The forester [probably a recent graduate of the University of Vermont] comes out… and he tells you which trees you kin cut. I'm not kiddin'."

So, now we have to get in touch with the county government… the state government… and for all we know, it will soon be a federal case, too.

Work will slow. Inevitably, there will be fees to pay.

And why? Why should someone else tell us which trees to cut? How is the world a better place as a result?

Most likely, it won't be. It will just be less efficient. Productivity is now going backward… and if that continues, the welfare state is doomed.

"Man… you got some snakes down in those woods," said Tommy. "An' I hate snakes.

"I bin operating a tractor [a bulldozer] all my life. Mor'n 60 years. An' I neva had that happ'n before. I was down in the bottom… doin' my work. An' all of a sudden, I looked aroun' n dere was a big black snake in de cab wif me. He was right behind me, hanging from the window and lookin' over my shoulder.

"Well, you ain't neva seen an 80-year-old man move as fast as I moved."

"What happened to the snake?" we asked.

"Oh… I settled up wif 'im."

And now the welfare state no longer makes sense. If a person can get more from private insurance, private health care, and private education, why support the feds?

In other words, the welfare state only really worked as long as people got something for nothing. Nothing-for-something will not be attractive to the voters.

But wait. Why not just rob Peter to pay Paul?

Tax the few rich… and give the money to the many poor. Remember, it's a majority rule system! Why won't that work?

Oh, dear reader, you make us laugh sometimes. Have you forgotten? The voters don't really control the system.

Peter does.


Bill Bonner
for Bonner and Partners

P.S. Another dollar crisis is coming. It's not a question of if, but when. And gold could soar to record levels when it strikes. If you own gold beforehand, you can preserve – and grow – your wealth. That's why we've produced a FREE special report called The 5 Best Ways to Own Gold. Don't buy any gold until you read it. We'll send you your report when you sign up for the free daily email edition of The Daily Reckoning. Every day you'll get an independent, penetrating and irreverent perspective on the worlds of finance and politics. And most importantly, how they fit together. Click here now to sign up for FREE and claim your special report.

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Gold Daily and Silver Weekly Charts - Fed Cred

Posted: 06 Jun 2016 01:19 PM PDT

5 Most Disturbing Things You Can Buy on the Deep Web

Posted: 06 Jun 2016 12:00 PM PDT

5 dark and disturbing things you can buy on the Deep Web... Dark5 explores the creepy hidden online markets in the darkest and most anonymous corners of the internet. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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06/06/2016= 666 The Gates of Hell are opened

Posted: 06 Jun 2016 10:30 AM PDT

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TOP Secret Things you didn't Know about Mathematics

Posted: 06 Jun 2016 10:00 AM PDT

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Jobs Report Worst in Five Years

Posted: 06 Jun 2016 09:25 AM PDT

This post Jobs Report Worst in Five Years appeared first on Daily Reckoning.

And now… today's Pfennig for your thoughts…

Good day, and a marvelous Monday to you!

Well, well, well. My dad always told me that eventually, the chickens come home to roost, Chuck. He should’ve known that all too well, as he was brought up on a farm with a city block long chicken house! And to me, the chickens all came home to roost on Friday. 

May jobs creation showed just 38,000 jobs created for the month, with 224,000 jobs added to the surveys by the BLS. Which means that once again, May being just like April, that the surveys indicated negative job growth, but for the wonder and magic of the BLS they made sure they weren’t! Gold got on a rocket and went to the moon, along with the euro, and the commodity currencies. It was a sight to see, even if I saw it with blurred vision.

The recent ISM Manufacturing Indexes have been telling us that the labor component of the report was softening, so there was indication that the chickens were ready to come home to roost, but we needed to see it, the markets needed to see it, and most of all Janet Yellen needed to see it with her own eyes.

Now, I have to wonder… She told us that the rate decision was going to be data dependent. And I hear rumors that Fed member Lael Brainard has Yellen’s ear, and Brainard is a dove. But what will that do to all the rate hike rhetoric that Yellen sent her fellow fed members out to talk about in May? Will it put egg all over their collective faces? Will the markets take it as the boy who cried wolf, one too many times, and never pay attention to them again? Oh, so many questions I have shooting into my mind about what this might do to the credibility of the Fed going forward.

Oh, and fed member Fischer is a hawk, and he has Yellen’s other ear, so it’s like the old cartoon with the devil on one shoulder of a man, and an angel on the other shoulder of a man, and he’s confused as to who’s words he must follow. Or, even the old Stealers Wheel song sung by Gerry Rafferty, Stuck in the middle with you. I’ll leave singing the lyrics up to you, now that I’ve put that song in your head for the day! Oh! And let me be clear, I’m not calling the fed members devils or angels, I’m just saying that it reminds of that old cartoon…

So, that was Friday. Gold has held its $33 gain from Friday in the early morning trading, but the currencies are giving some of their gains back, with the Brazilian real one of the very few that are still pumping positive gains vs. the dollar.  The euro has given back one-quarter cent after Germany printed a negative Factory Orders report. The print was expected to be negative, but not the -2.0% figure that it posted. The Aussie dollar (A$) is drifting ahead of the Reserve Bank of Australia (RBA) meeting tonight. Would the RBA opt to cut rates at back-to-back meetings? That’s the question that’s on traders’ minds today, as they cautiously trade the A$, ahead of the meeting.

The New Zealand dollar/kiwi is selling off in sympathy with the A$, but also because traders did the V-8 head slap and realized the Reserve Bank of New Zealand (RBNZ) will be meeting this week, and I’m sorry to say that it is widely expected that the RBNZ will cut rates this week. UGH! Everybody wants inflation, and I’m afraid that one day, not too far into the future, these Central Banks that wanted inflation, will rue the day they wished for inflation. But then, that’s just me, and my opinion, I could be wrong. I just think Central Bankers are making a HUGE mistake believing that inflation is dead.

Last week I spent our Thursday Pfennig talking a lot about China, and the renminbi. Then I read some more stuff that’s going on there, that I hadn’t heard about on the TV news, or read about in my local paper. Did you know that the U.S. announced a 522% duty tax on cold-rolled steel from China a week ago? And a 450% duty tax on corrosion-resistant steel from China? Well they did!  Oh, my, my, my. What have we here? A trade war with China? It certainly appears that this is what’s on its way, folks. I don’t think we want to get into a trade war with China, when they hold so much of our debt, do you?

Now for those of you who are new to this currency investing stuff, let me take you back in time, in Bill and Ted’s time machine that was a telephone booth, to the early 2000’s, and the new President at that time, George W. Bush, had just placed a tariff tax on Japanese steel. And began a trade war with Japan. I remember it like it was yesterday, for I seized that info and threw it out for my readers telling them that this should begin a long weak trend for the dollar, as currency markets do not like trade wars, and the country that starts it.

And what happened not long after that announcement of the tariff tax on Japanese Steel? The dollar entered a long weak trend that began in 2002, and pretty much ended in 2011. Now, I don’t know if China is going to retaliate or not. My guess is they will and when they do, it won’t be a Pollyanna, retaliation. And that could really get the dollar back to its underlying weak trend.

For the record, at the moment Chinese officials have said, “we are extremely dissatisfied with this irrational move by the U.S. which could harm cooperation between the two countries, and that, China will take all the necessary steps to strive for fair treatment and to protect the companies’ rights.” Add to all this saber-rattling between the two countries to the problems associated with China’s claiming to have rights to a group of  islands in the South China sea. And we’ve got ourselves a real pickle here to sort through.  Again though, why would you be picking a fight with the country that  owns a very large portion of your debt?

You see, I think that besides having enough gold to back their renminbi in some sort in the future, China has been accumulating large portions of gold each year, to offset their losses in the debt they hold should they unload large pieces of it. I know, I know, that sounds like conspiracy, but it isn’t. It’s opinion, and I could be wrong on this, but think about it, and get back to me if you think I’m barking up the wrong tree here.

The important thing for currency investors is that we could see near-term history repeat itself with regards to the reaction of traders to the dollar, after the U.S. announces tariff taxes on imports. And for long-term history, recall that the Smoot-Hawley tariff that added taxes on over 20,000 imported goods to the U.S. came right before the Great Depression, and I’m a firm believer that it had a lot to do with setting the U.S. on the path of the Great Depression.

Well, the information I had last week, regarding the Janet Yellen speech being the last one before the quiet period ahead of the June 14-15 Fed Meeting was incorrect, and she’s expected to speak again today, in Philadelphia, and now she has the May jobs report in her back pocket, but I do believe that she will walk a fine line between rate cut or no rate cut. She can’t risk ruining what the Fed members all went out in force the past three weeks to tell the markets about the coming rate hike, with dovish talk, and she can’t risk putting the markets into a tailspin with hawkish talk. Stuck in the middle with you. See how it works there?

Another thing that Lael Brainard has reminded Yellen about recently is that the “leave vote” in the U.K. is gaining momentum and if the people of the U.K. vote to leave the European Union (EU) that the affects could spill over to the U.S. and therefore Yellen should wait to see the outcome of the referendum that’s later this month.

The price of oil seems to be stuck in the mud as it trades in the $49 handle, but doesn’t attempt to breach $50. And just like I always tell you about assets that push the envelope up to a level repeatedly, but never breaching it, that the traders soon lose interest in that asset, and give up the ghost on that asset, and move on to some other asset. So, the price of oil had better breach $50 soon, or we could see a pullback. And with the price of oil stuck in the mud, the petrol currency traders have already moved on, and have begun to take away chunks of flesh from the petrol currencies, led by the Russian ruble, and followed by the Norwegian krone, and Canadian dollar/loonie.

Last week, I sent Chris a note that he used in the Friday Pfennig about the car loans problems that are beginning to become something we should be wary about. And a dear reader sent a note and asked me to go into more depth as to who will get hurt and how with the pending subprime auto loans. Sure! It just so happens that I was reading some more about this just this past weekend!

Basically, these subprime auto loans are done with special auto loan companies that charge HUGE interest rates on the loans. We’re talking anywhere from 18% to 30%… So, when a subprime borrower can’t make their payments, the cars are repossessed and sold at auctions, where they sell for less than the car’s sale price. The sales proceeds minus the lender’s repossession costs are credited to the borrower, and the lender then sues the borrower over the remaining balance. And reports show that most of these lawsuits favor the lender, and then the subprime borrower now has a huge bill, with no car! So, in the end it’s the borrower that gets hurt the most, and goes into debt. Which means that eventually they will be on some sort of social benefit at a cost to taxpayers. I hope this helped with that question.

So, getting back to the Jobs Jamboree from Friday. With only 38,000 jobs added (according to the BLS) it was the worst month of hiring in five years here in the U.S. and while the Unemployment Rate dropped from 5% to 4.7% it was no call to celebrate because what it meant was that half a million Americans gave up their search for work, and were no longer counted as unemployed. Yes, that’s one of those “funny things that we do here in the U.S.” Once a person gives up searching for a job, they are no longer counted as unemployed by the U.S. Wait, What? Yes, stranger than fiction, folks. I would think that someone giving up looking for a job would be the MOST Unemployed a person could get!

The three things I always tell you to look at in the Jobs report. The Avg. Hourly Earnings, The Avg. Hours Worked, and the Labor Participation Percentage, had some things to tell us on Friday. First the Avg. Hourly Earnings were bang on expectations with a 0.2% rise and an annual increase of 2.5%, so nothing of note here. The Avg. Hours Worked were marked down to 34.4 from 34.5, and again nothing to note here. The Labor Participation % was 62.9%, up 2-tenths to the highest level it has been in over a year now. So, while the jobs report was awful, and a half-million people gave up looking for work, this % rose. So, I guess you could get some drum pounding from this rise if you wanted to.

I mentioned the BREXIT vote in the U.K. earlier, and the latest poll showed the “leave vote” in the lead now. I told you a couple of weeks ago, that there would be so many of these polls ahead of the referendum and that the pound sterling would gyrate with these polls, and that’s exactly what we’ve seen in the past week, which started last week with the a poll showing the “don’t leave vote” in the lead, and the pound rallied, and as the week went on, new polls showed the “leave vote” catching up, and the pound rallied stalled, and then onto the weekend with the “leave vote” taking the lead, the pound is getting sold this morning. I see that PM Cameron has really been beating the drum for the “don’t leave vote” and like I said early in this process, I don’t see the U.K. leaving the European Union, but stranger things have happened, right?

The U.S. Data Cupboard doesn’t have much for us today, except the labor data that the Fed really looks at, the Fed’s Labor Market Conditions Index (LMCI) You may recall me reporting last month that this Index had shown four consecutive months of negative numbers. Will the May report make it five? I would think so. And then finally we can put to bed the June rate hike talks, and begin to doubt the July meeting’s chances of a rate hike.

Well, gold was up $33 at the close on Friday, and silver was up 33-cents. A nice day for gold and silver. But – and you knew there would be a “but” here – gold’s nice day could have been even better if the price manipulators had stayed on the sidelines. At one point on Friday, gold was up to $1,247, and the volume was incredible with 217,000 contracts being traded, who knows where the shiny metal could have gone from there, but wasn’t allowed to, and so we had to settle for a $33 gain, which isn’t anything to complain about, just not as satisfying as a $50 or even better gain sounds.

Before we head to the Big Finish today, I wanted to talk about something.Did you hear that Blue Cross Blue Shield of Texas filed for a rate increase of almost 60%? Why, you may ask? Well, it is due to revenue losses estimated at more than $1 billion over the last two years under the Affordable Healthcare Act. It has another name, but lets’ just call it the AHA. You and I both know that Insurance companies are sticklers when it comes to calculations about future things. They employ a truckload of actuaries that KNOW WHAT THEY ARE DOING! So, that brings about a fair question, were they given the wrong expense numbers from the government to begin with? I shake my head in disgust over this whole boondoggle.

Well, negative rates have really taken hold around the world. And get this – for the first time EVER Over $10 trillion in government bonds have been issued with negative yields. I found this on Zerohedge.com  and you can read it all here, or here’s your snippet:

The world passed a historic milestone in the past week when according to Fitch negative-yielding government debt rose above $10 trillion for the first time, which as the FT adds envelops an increasingly large part of the financial markets ‘after being fueled by central bank stimulus and a voracious investor appetite for sovereign paper.’ It also means that almost a third of all global government debt now has a negative yield. The amount of sovereign debt trading with a sub-zero yield climbed 5% in May from a month earlier to $10.4 trillion, pushed higher – or lower in yield as the case may be – by rising bond prices in Italy, Japan, Germany and France.

The ascent of the negative yield, which first affected only the shortest maturing notes from highly rated sovereigns, has encompassed seven-year German Bunds and 10-year Japanese government bonds as both the European Central Bank and Bank of Japan have cut benchmark interest rates and launched bond-buying programs.

Chuck again. But, investors keep buying these negative yield bonds, right? Are you kidding me? Who on earth would buy this stuff? Well, here’s something to think about, in the near term which means right now, the capital gains in the bonds are making up for the negative yields, but when rates turn, what will happen to the capital gains then? That’s right, they will be gone, and the holder of the bond will then have to pay to own that bond for the remainder of the term of the bond. Oh boy! Where do I sign up for some of that? NOT!

That’s it for today. I hope you have a marvelous Monday! Be good to yourself!


Chuck Butler
for The Daily Pfennig

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Warning: Fed Watching Can Be Fatal

Posted: 06 Jun 2016 09:00 AM PDT

This post Warning: Fed Watching Can Be Fatal appeared first on Daily Reckoning.

The financial media should come with a warning label these days.

Similar to the one you'd find on a pack of cigarettes.

Something like…

"Beware: What you're about to see is hazardous to your health."

That's because helter-skelter coverage of what the Fed might do next has become so stressful it may cause an aneurysm if you pay attention…

False Alarm

For the past few weeks, the media's been priming us for a Fed rate hike at its June meeting.

We've been inundated with anticipatory headlines like these…

"Fed Is Seriously Considering Raising Interest Rates in June" – New York Times

"A Fed Reserve Head Says Conditions Are Almost Right for June Rate Hike" – Fortune

And we've been hit with quotes from Federal Reserve Bank members like Richmond President Jeffrey Lacker, who said: "I think the case would be very strong for raising rates in June."

Even the Fed chair herself, Janet Yellen, did little to slow the June rate hike momentum in a speech right before Memorial Day weekend.

Make no mistake, a Fed rate hike looked to be coming our way in June. And the investment landscape was going to change dramatically.

Tension was building because the last rate hike in December 2015 was followed by a bout of global market turmoil.

But what a difference a day makes…

A Stunning Reversal

Everything changed in a moment last Friday…

The U.S. Department of Labor reported a deeply disappointing jobs number.

Nonfarm payrolls rose by a seasonally adjusted 38,000 in May. That's the weakest jobs figure since September 2010.

That number was more than 100,000 lower than analysts' estimates.

And the media started hyperventilating again…

You know that June rate hike they were telling you was near certain on Thursday? Yeah, not so much on Friday.

Before the ink was dry on their rate hike headlines, the mainstream media immediately starting churning out a new spin…

"Sharp Fall in US Hiring Saps Chance of Fed Rate Increase in June" – New York Times

"Don’t Expect the Fed to Raise Interest Rates This Month" – Fortune

And they ran with a quote from Federal Reserve Governor Lael Brainard, who said there was an "advantage to waiting until developments provide greater confidence" before raising rates.

Wall Street responded with a panic attack. Traders flooded back to the safety of short-term Treasuries. And the dollar weakened against its peers.

The whole investment landscape changed again… just like that.

Zen Investing

You know what I was doing while Wall Street was freaking out about the jobs report and what it means for the Fed?


Why was I unfazed by the same developments that were roiling the financial world?

Because I refuse to play that game.

I know that a few days from now some new statistic or quote is going to be released that will cause the chattering class to hyperventilate all over again.

Wash, rinse, and repeat.

The media will churn out more breathless headlines about what it all might mean.

They'll be more gnashing of teeth on Wall Street about what it might cause the Fed to do.

And market watchers who choose to play this inane game will be stressing out all over again.

Trend followers hit the mute button when the noise starts.

You can't afford to waste your time and money investing on hypotheticals. Trade only on what you can see and verify… and that's price movements.

That’s just what we did with our gold recommendations in our Trend Following monthly letter.

Scores of investors got out of gold and gold stocks because they were certain the Fed would hike rates.

And a lot of my readers asked me: "Since the Fed is about to hike rates, shouldn't we close our gold trades?"

My response? "No, the trend is up, so stay with the trend."

So when the unemployment report shocked everyone… gold and gold stocks jumped way higher… and we made more money.

Not because we predicted the unemployment report… or how the market would react. But simply because we were following the trend.

So let go and find your own piece of investing Zen by becoming a trend follower. I promise it will do wonders not only for your portfolio, but also for your overall health.


Please send me your comments to coveluncensored@agorafinancial.com. Let me know what you think of today's issue.


Michael Covel
for The Daily Reckoning

The post Warning: Fed Watching Can Be Fatal appeared first on Daily Reckoning.

BREXIT POSTAL BALLOT "FRAUD" - British Voters Appalled & Disgusted

Posted: 06 Jun 2016 08:30 AM PDT

BREXIT POSTAL BALLOT "FRAUD" - British Voters Appalled & Disgusted 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! ]]

EU Proposes Government ID to Use Internet

Posted: 06 Jun 2016 08:00 AM PDT

Is this the beginning of the Mark Of The Beast? 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! ]]

Another Huge Delivery Day For Gold - Over 1,176,000 Ounces Delivered for June

Posted: 06 Jun 2016 07:52 AM PDT

First Majestic Silver Stock Soars

Posted: 06 Jun 2016 07:05 AM PDT

First Majestic Silver has been one of the world’s best-performing stocks in 2016, nearly quintupling at best in recent months.  This outstanding Canadian silver miner runs extensive operations in Mexico, and is one of this metal’s purest producers.  Despite its blistering run this year, First Majestic remains incredibly well-positioned to greatly leverage silver’s mean reversion higher.  Investors should take a look. First Majestic Silver’s amazing fundamentals won me over as a fan years ago, and I definitely have a dog in this fight.  As silver was grinding along near major secular lows late last year, we recommended a new long-term investment in First Majestic at $3.20 in our monthly newsletter.  Then in mid-January as silver stocks languished, we added another new First Majestic trade at $2.51 in our weekly newsletter.

Prepare For The Economic Collapse NEW 2016

Posted: 06 Jun 2016 06:45 AM PDT

The Entire Economy Is All Smoke And Mirrors, Prepare For The Economic Collapse NEW 2016 Huge miss for jobs, the US only added 38,000 jobs in May worst since 2010. The unemployment rate dropped to 4.7% on horrific data. More waiters, waitresses and bartenders were added as manufacturing jobs...

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Two Rising Mining Companies for an Uncertain Market

Posted: 06 Jun 2016 01:00 AM PDT

The market has its moods and its fascination with headlines. Greece, Ukraine, ISIS, emerging markets—crises come and go. Investment adviser Jayant Bhandari discusses the role of gold in uncertain...

Visit the aureport.com for more information and for a free newsletter

Is the Gold Pullback Complete?

Posted: 06 Jun 2016 01:00 AM PDT

Technical analyst Jack Chan examines the charts after Friday's spike in gold.

Breaking News And Best Of The Web

Posted: 06 Jun 2016 12:00 AM PDT

Doug Noland’s latest Credit Bubble Bulletin and David Stockman’s proposal to fix the big banks and by extension the economy. Junk bonds and pensions are scaring analysts. More on the dismal US jobs report. Stocks are up, gold is down, and oil is rallying.   Best Of The Web Monkey with money at your own […]

The post Breaking News And Best Of The Web appeared first on DollarCollapse.com.


Posted: 05 Jun 2016 11:01 PM PDT

  http://www.kopp-verlag.de/Gold:-10.000-Dollar%3f.htm?websale8=kopp-verlag&pi=952000&ci=000338 https://www.amazon.de/Gold-10-000-Dollar-Gary-Christenson/dp/3864453011 Gary Christenson...

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