Friday, July 1, 2016

Gold World News Flash

Save Your ASSets First

Gold World News Flash


Bullion Banks Are Starting to Lose Control of Silver

Posted: 01 Jul 2016 01:00 AM PDT

from Shadow Of Truth:

In this episode of the Shadow of Truth’s Market Update, we dig into the signals being given by the market which indicate that the silver manipulation scheme is becoming unmanageable. In addition, we discuss the ongoing global systemic financial and economic collapse.

The Prospects for Money

Posted: 01 Jul 2016 12:30 AM PDT

by Alasdair Macleod, GoldMoney:

In my view, this new bout of turmoil in financial markets is the prelude to the final demise of government currency.

If I'm right, a long-expected collapse in the purchasing power, and of the very concept of fiat currency, will evolve from current events. The purpose of this article is to explain why monetary theory predicts a currency collapse.

The question at the heart of today's market instability is the validity of fiat currency; that is to say, forms of money issued and sanctioned by individual governments, with no backing other than faith in those governments' creditworthiness, and the enforcement of its use by law. The risks they impose on all of us will be evidenced one day by both the speed of the fall in each individual fiat money's purchasing power, and inevitably by their comparison with gold's more stable purchasing power. Essentially, an awareness of the dangers of unsound money will gradually become evident to every economic actor.

So far, or at least since the days when fiat money was freely exchangeable for gold, central banks have managed to enforce upon us their currencies as money, originally on the basis they were gold substitutes. That pretence was finally dropped in 1971. The purchasing power of fiat currencies has never been seriously challenged since, except in relatively few extreme cases, such as Zimbabwe and Venezuela. Not even the financial crisis eight years ago threatened a collapse in fiat currencies, when banks had to be rescued with unlimited extra quantities of money and credit.

The current crisis has commenced while there are determined efforts to stop the purchasing power of the major currencies from rising, even leading to the deployment of negative interest rates in this quest. None of the central banks' policies appear to have worked. The increasing purchasing power of the yen, despite all attempts to lessen it, is the clearest example of the abject failure of a central bank to achieve its monetary objectives. The same can be said of the ECB and the euro, a currency even more synthetic than those it replaced. It is clear that the central banks are setting monetary policy more in hope than in a true appreciation of their own hopelessness.

They place an undue emphasis on empirical evidence. That's why charts and statistics are so important to them and all their epigones. When you don't understand and cannot explain something, you turn to the so-called evidence. And when very few people actually have a reasonable grasp of what money is about, you can rely on empirical evidence being unchallenged. For monetary policy, this tells us two things: central banks are clueless about monetary theory, and in the event of a second systemic crisis, they will be misguided by their experiences of the last one.

Today's empirical evidence reflects the bail-out of the global banking system in 2008/09. Neo-classical monetarists were initially worried by the potential for price deflation in the wake of the banking system's rescue, and so central bankers expanded narrow money by unprecedented quantities to counter credit deflation, real and anticipated. These were intended to be short-term measures, to be replaced with more normal monetary policies as soon as the immediate crisis was over. These short term measures are still in place today eight years later.

The impact on the gold price

After the Lehman shock, which led to a temporary flight into both money and short-term government debt, the purchasing power of currencies relative to that of gold rose, with the gold price falling from $930 to $690. Subsequently, when it became apparent that monetary expansion had succeeded in curbing deflationary forces, this trend reversed, taking the gold price to over $1900. That then changed in September 2011, following concerted central bank intervention to supress the gold price.

The dollar-gold relationship has now turned once again, signalling that the tide of confidence is moving against currencies. The purchasing power of currencies measured against that of gold is now falling. We now have a banking crisis in the making, if the share prices of major banks are any indication. The UK's decision by referendum to leave the EU points to Europe's political disintegration. Increasing market volatility tells us that another systemic crisis may well be imminent, and government bonds reflect a continuing flight to safety.

Already, the Bank of England has announced that a further £250bn in monetary support will be made available to the banks, and that additional swap lines have been agreed between the major central banks. We can take this as evidence that the central banks, relying on empirical evidence, are preparing a new round of monetary expansion as the solution to any future crisis, confirmed in their belief that the risk to the credibility of their currencies is unlikely to be a problem.

This is not what gold, when priced in these currencies, is telling us. To understand why and where the central bankers are mistaken, we must consider some fundamental points about how money actually works.

The theory of money and its purchasing power

To prepare our minds for a comprehensive understanding of monetary theory, we must at the outset dispense with any idea that statistical analysis is relevant. It is not, because there are no constants involved. Valid statistics require at least one constant, usually the purchasing power of money. In the whole field of economics, let alone money, there are none. The purchasing power of money is to a large degree independent of its quantity, and depends on a fluctuating acceptance that it is exchangeable for goods. Quack monetarists that believe in the equation of exchange, despite all evidence it does not work, overlook the subjective factors that qualify something as money.

When we set out to understand money, we must acknowledge there are three major influences at work, besides a general acceptance that a particular form of money is exchangeable for goods. There is the subjective value of the goods for which an exchange is considered, there are the fluctuations in the relative quantities of goods and money in the exchange process, and there is the balance of relative desires in the population as a whole to increase or decrease the quantity of money held, relative to goods. All these factors are the unknowable decision of every single economic actor, and fluctuate accordingly.

This self-evident truth continually risks undermining the very function of any particular form of money, which in order to be acceptable to the parties in any transaction must have a commonly accepted value, even though one party will want money more than the other at a given price. This commonly accepted value has been described by the economist, von Mises, as money's objective exchange value. It is the one thing that parties to a transaction can agree upon. A dollar is a dollar, a euro is a euro, and so on, even though different individuals will want these forms of money more or less than other individuals.

So far, we have addressed only one out of four dimensions of the money problem. A second dimension is that demand for some goods is always greater than demand for other goods, so money's purchasing power will differ for every good and class of good exchanged for it. It is never sufficient to just assume that, for instance, the price of housing is rising solely due to demand for housing. It also rises because people place a lower value on money than they do on bricks and mortar. On reflection, this truth should be self-evident. But it also holds true for every other good for which any particular form of money is exchanged, and it is too simplistic to assume that changes in price come from the goods side alone.

A third dimension to consider is that the products and quantities of goods and services purchased yesterday will not be the same as the products bought tomorrow. Besides making the point again, that statistics are wholly irrelevant to understanding money, we can also add that what money will be used to buy tomorrow and in what proportions cannot be predicted, beyond perhaps some broad generalisations, such as people will buy food, they will use energy, and they will enjoy some leisure time. Such platitudes are of no practical value to understanding monetary theory, and disqualify the use of price indices and aggregates such as gross domestic product.

The fourth dimension is one of time. The injection of money into an economy will start at a point, typically the banks creating loans, or governments through unfunded spending. Money therefore enters an economy unevenly, benefitting some at the expense of others. This is known as the Cantillon effect, and is universally ignored by the neo-classical economic community.

Read More @ GoldMoney.com

Keiser Report: Market Freak Show (E934)

Posted: 01 Jul 2016 12:00 AM PDT

from RT:

In this episode of the Keiser Report from Toronto, Max and Stacy discuss the housing market 'freak show' put on by central bankers. In the second half, Max interviews Roy Sebag and Josh Crumb of Bitgold.com/Goldmoney.com about their unique gold platform and the latest in the gold market.

The Italian Job: "How Did Things Go So Bad?"

Posted: 30 Jun 2016 11:00 PM PDT

Submitted by Danielle DiMartino Booth via DiMartinoBooth.com,

“You’re only supposed to blow the bloody doors off!”

That one line, spoken on the big screen by Michael Caine was crowned, according to a 2003 Daily Telegraph survey, Britain’s favorite one-liner of film. That kind of staying power is remarkable considering The Italian Job, the original that is, was released in 1969, two years before Mark Wahlberg, who portrayed Caine’s character, Charlie Croker, in the movie’s 2003 remake, made his 1971 debut.

As for the film’s American version and one-liners, the crown for favorite was won when Charlie’s 2003 on-screen nemesis Steve taunted: “You blew the best thing you had going for you. You blew the element of surprise.” Charlie’s reaction? A knock-out punch followed seamlessly by the understated comeback, “Surprised?”

The element of surprise was on full display in the hours and days that followed Britain’s voters’ decisive move to Leave the EU. The Brexit referendum succeeded in blowing off a different set of doors, leaving taunting politicians and policymakers alike flat-footed, with a whole new fear, that of contagion, beginning to the south in Italy. Might the Italians pull of a Job of their own, following Great Britain’s lead in stealing back their own country?

The hope, stated diplomatically by Gluskin Sheff’s inimitable David Rosenberg, a dear friend, is that Brexit will prove to be a, “wakeup call for the long-awaited fundamental changes with regards to the EU – make it more democratic and make it less bureaucratic and embark on immigration rules that do not sacrifice regional security.”

Rosenberg’s concerns on security are more than justified in the case of Italy. According to the Italian Coast Guards’ latest tally, the 3,324 migrants rescued June 26 brought the total rescued in just four days to 10,000. Four days! Calm seas have triggered fresh waves of migrants, bringing the total thus far this year to 66,000. The forecast calls for 10,000 more to arrive every week until year’s end. Some 300,000 in total for 2016. The ease with which migrants can cross the seas to Italy means that country takes in 13 to 14 times more than Turkey and Greece. Is it any wonder Italians are exhausted?

At a Brussels Summit, EU leaders were urged to “speed up and increase” the return of migrants deemed to not be bona-fide refugees. In actuality, many making the crossing are simply looking for economic opportunity rather than escaping any real danger. Estimates vary, but only between six and 19 percent of those ordered back to their home countries actually leave. It is patently apparent that the EU does not have sufficient measures in place to combat the problem on behalf of its disgruntled member nations, and must become much more vigilant in its approach.

As economically and culturally debilitating as the migrant crisis has become, it’s critical to take a step back from this particular issue to understand the depth of Italy’s economic plight. The reality is, there’s something greater than just poorly managed migration underlying the unrest in Italy and its EU neighbors.

While the migrant crisis clearly played into Brexit, the vote revealed much deeper anxieties driven by a very visible fact of British life, especially life after the financial crisis. The briefest of visits to the City of London, its streets lined with chauffeured Mercedes, offers ample prima facie evidence of what so many Brits know in their bones – that the distance between “them” and “the rest of us” has grown since the crisis broke.

The average Brit knows they didn’t wake up yesterday ripe to pillory the “elite,” a word that’s crept back into the vernacular like a slowly spreading disease. But they do know they’re not among those who have risen to the creamy top in recent years but have rather been demoted to the ranks of those left behind.

The fairy tale of the wealth effect, that what is good for those at the top of the pecking order is good for the masses, is apparently an international phenomenon. The one saving grace on this count is the British never succumbed to pressure to join single currency. That, however, is certainly not the case for the beleaguered Italians.

Back in the summer of 2012, when Greece appeared poised to leave the EU and escape the euro currency via devaluation of the drachma, Merrill Lynch released a report ranking the countries who stood the most to gain economically from dropping the euro. Can you guess who came in at the top spot?

More than any of its peers, the Italian economy has suffered since joining the euro in 1999. Since 2007, its economy has contracted by 10 percent and suffered not one, not two, but three recessions. Competitive export-led growth has been deeply impaired by virtue of Italy’s being effectively yoked to the massive German economy.

Despite the rise of China, Germany has been able to maintain its top three ranking among world exporters. The secret weapon? That would be the euro. In 1998, the year before Germany switched to the euro, the country exported $540 billion. By 2015, that figure had swelled to $1.3 trillion. Italy’s exports have also grown, but not nearly as robustly, coming in last year at $459 billion compared to $242 billion the year before it joined the euro.

Just as it once was the case with China, Germany benefits from its relatively weak currency. If Germany was not tethered to its weaker-economy neighbors and was still on the Deutsche Mark, it would have a significantly stronger currency and substantially lower exports due to the price of its exports being much more expensive for world markets.

Back in 2011, UBS put pencil to paper and figured that losing the common currency would trigger an immediate effective tax increase for the average German citizen of about €7,000 and between €3,500 to €4,000 euros every single year going forward. By contrast, swallowing half the debt of Greece, Ireland and Portugal at that time would have generated a little over €1,000 tab per citizen. Now you see why bailing out is so easy to do, though the Germans do put on a great show of irritation at having to foot such bills. But let’s be honest. Consider the alternative.

Reverse that effect and, with all else being equal, you begin to appreciate why Italy’s exports have become relatively more expensive, burdened as they are with a more expensive currency than they would have had. Consider that globalization had already done a number on the country’s once magnificent industrial base when Italy opted into the euro and left the lire behind. Since then, the country’s industrial capacity has been further decimated, shrinking by 15 percent. To take but one example, in 2007, Italy manufactured 24 million appliances; by 2012 it had declined to 13 million.

Add up the economic consequences and you begin to understand why Italian unemployment is running north of 12 percent while putting four-in-ten young Italians are out of work. To the Italians, if anyone’s managed to pull off a Job, it’s those smug Germans.

Three years ago, the Merrill report warned that Italy’s current account deficit would be an impediment to returning to the lire in that the deficit required foreign capital to keep current on its bills. Flash forward three years and Italy is running a current account surplus of 1.9 percent, a fairly recent phenomenon and more a reflection of its economic atrophy than a competitive trade position. Nevertheless, that is one obstacle to leaving the euro that’s disappeared.

That is not to say that Italy will be able to ride off into some glowing economic sunset. Italy’s banks are thought to be the Continent’s weakest. There are $408 billion in past due loans sitting on Italian bank balance sheets. Investors value these loans at 20-30 cents on the dollar if they are secured, and as little as 5 cents if they are unsecured while banks have marked them at between 50-65 cents on the dollar.

The yawning gap between market pricing and that of Italy’s banks is reminiscent of how unrealistically Lehman valued its loans before going under. Unicredit, Italy’s largest bank, has seen its stock price halved this year as investors worry its capital is insufficient to handle the Brexit fallout.

Leaving the EU and being unshackled from the euro could well lead to an Italian debt default, which is meaningful given Italy is the third largest sovereign debt market in the world. But local laws also provide plenty of leeway for the government to restructure its debts without triggering a default. The one thing that is not in doubt is that the lire would provide the Italians with the relief they have so desperately needed since joining the single currency.

On the flipside, the damage to Germany’s manufacturing sector could be sufficient to catalyze a Continental recession. Angela Merkel has probably lost considerable sleep being a unified Europe is her treasured baby. In all, Germany’s annual economic growth is boosted by a half-percentage point courtesy of its euro membership.

While there is no denying the economic challenges facing Italy, the potential for its exiting the EU was hugely increased by the Brexit. After all, some 58% of Italians were already calling for a referendum vote. If those voters are angry today, imagine how much angrier they will be if the Brexit throws Europe into a recession that Mario Draghi cannot effectively battle given that he already has his stimulus measures running full throttle.

Tellingly, the anti-establishment Five Star Movement, which has risen rapidly in power in recent months, has not called for a referendum to leave the EU, but rather to get rid of the euro. Beppe Grillo, the stand-up comedian who founded the party said the Brexit, “sanctions the failure of EU policies based on austerity and the selfishness of member States, which are incapable of being a community.” Yes, Stunad, it really is about the economy.

The shame is Italy is its own bureaucratic basket case with little rule of law (think Mafia, tax avoidance and the impossibility of legislating anything from theory into practice). Brexit has lowered the odds Matteo Renzi’s government will stand the test of time and last until October, the date by which his referendum to streamline Italy’s bloated government must be taken up by the Italian electorate.

Even if Renzi stands, Italy’s future in the EU looks to be at risk. The collapse in bank shares in the trading days following the Brexit has created an immediate crisis. Within 72 hours of the vote results, Italy was reported to be preparing a €40 billion rescue of its financial system. A direct recapitalization of the banks, funded by a special bond issue was on the table. But the Italians are also pleading for a moratorium of ‘bail-in’ rules and bondholder write-downs, both of which are prohibited under existing EU laws.

Hate to go out on any limbs here, but odds are pretty good that those rules will be relaxed, all things considered.

How on earth did things go so wrong? Could it be as simple as power-mongering and greed? To rob a line from the 2003 Italian Job, “There are two kinds of thieves in this world: The ones who steal to enrich their lives, and those who steal to define their lives.” Could it be that average working Italians, especially those who have been around for a good long while, feel as if they’ve been victims of both of the two kinds of theft, doubly wronged? “Basta!” their voices scream in defiance. Enough is enough!

BREXIT BODY COUNT — Bill Holter

Posted: 30 Jun 2016 10:35 PM PDT

by SGT, SGT Report.com:

BREXIT: Does it signal a tidal wave of rising sentiment against the international criminal banking syndicate and its Globalist agenda, or is it merely a Trojan horse designed by the Rothschild banksters to further ensnare humanity in their NWO spider’s web? After all, Rothschild puppet George Soros was very publicly shorting stocks and going long gold in the months leading up to the Brexit vote. Did he know something the rest of us didn’t? Regardless, Bill Holter says there are dead bodies that need to be carried out as the result of the global financial chaos we saw on Friday, June 24th – and we will know a lot more about who those bodies belong to, on Monday morning. Bill Holter from JS Mineset joins us to discuss.

RED ALERT: NOW THEY’RE COMING FOR OUR RETIREMENT MONEY

Posted: 30 Jun 2016 09:29 PM PDT

by SGT, SGT Report.com:

I received a document from Paychex today which is the administrator of one of my 401K accounts… and they have announced that they are going to move all cash in NON-government ‘Federated CASH Obligation’ money market accounts to ‘Federated Government Obligations‘.

Since my 401K money is invested in three different precious metals funds this announcement does not affect me, however it will impact many other unsuspecting would-be retirees who falsely believe that their money is “safe” and “liquid” in a money market account. This is the slippery slope into government forcing account holders to invest in government debt (Treasuries), and it’s exactly what we’ve been warning about. As for me, I’m going to roll that particular account over and away from the control of Paychex.

Dave Kranzler from Investment Research Dynamics joins me to dissect the document and to shed some light on the recent huge moves in silver.

Why The Collapse Of The U.S. Economic & Financial System Has Accelerated

Posted: 30 Jun 2016 09:25 PM PDT

by Steve St. Angelo, SRSRocco Report:

The collapse of the U.S. economic and financial system accelerated this year, thus pushing the country closer to a third-world status. Most Americans are unaware of the dire consequences facing the nation, so they continue to believe business as usual will continue indefinitely.

Unfortunately, lousy reporting by the Mainstream media along with the public's denial and delusional thinking is a recipe for disaster for most Americans over the next several years.

The U.S. economy is being propped up by a great deal of monetary printing, Fed stock and bond purchases and extreme leverage in all areas of the market. While these policies have given the "ILLUSION" of continued prosperity, or at best a sustainable slow growing economy, the debt now in the system is unsustainable.

Still to this day, most investors (including precious metals investors) do not understand the real reason for the massive increase in U.S. Federal debt. They believe the debt was either increased to enslave Americans or to fund continued economic growth. While the second reason is more accurate, they still fail to understand the "ROOT CAUSE" of the debt increase.

The Massive Increase In U.S. Debt Tied To Falling U.S. Oil Production & Rising Oil Prices

This chart puts the huge increase in total U.S. debt in perspective:

The annual increase in U.S. debt was very small up until the 1970's. This was due to the peak of cheap U.S. domestic oil production. U.S. oil production peaked in 1970 at about 10 million barrels per day (mbd). That year, total U.S. debt was $370 billion. That's hilarious, because the annual deficits today are larger than the entire U.S. debt in 1970.

As the oil price increased in the 1980's and as U.S. oil production declined, total U.S. debt continued to increase. However, in the late 1990's, the U.S. debt leveled off. This was due to the price of oil declining below $20, reaching $14 in 1998 and $19 in 1999. In 1999, U.S. debt had increased to $5.4 trillion.

Then as the price of oil increased from $30 in 2000 to nearly $100 in 2008, total U.S. debt nearly doubled to $10.5 trillion. In addition, U.S. domestic oil production declined nearly 4 million barrels per day from 1985 to 2008. This also had a negative impact on U.S. debt levels.

While it's true that the cost of energy is only a small part of U.S. GDP, its impact is multiplied when the U.S. economy and government try to provide the same standard of living as it did prior to 1970. Furthermore, the EROI- Energy Returned On Invested of U.S. oil production declined significantly since the 1950's. The EROI of U.S. oil and gas production in 1970 was 30/1, however shale oil comes in at a low EROI of 5/1.

Thus, the falling EROI means less profitable barrels to provide the same (higher) standard of living as Americans enjoyed before 1970.

The U.S. Economy Is Propped Up By Massive Govt Spending

In fiscal 2015, the United States Govt. (supposedly) spent $3.8 trillion on mandatory, discretionary funding and interest on the debt.  Total revenues were only $3.18 trillion, so the U.S. Govt had to borrow $583 billion to pay its bills:

United-States-2015-Budget

These next two charts break down the "Mandatory" and "Discretionary" spending:

U.S.-Govt-Mandatory-Spending-2015

U.S.-Govt-Discretionary-Spending-Fiscial-2015

The $3.8 trillion in U.S. Govt spending is 21% of total U.S. GDP for fiscal 2015.  Even though the U.S. Govt spends a lot of money on many different areas, let's focus on Social Security and Medicare-Health.  These two parts of the mandatory spending equal $2.2 trillion of the $3.8 trillion total Federal budget.  This is nearly 58% of the total budget.

That $2.2 trillion spent in the U.S. economy has a "MULTIPLIER EFFECT".  This is the reason the Fed and U.S. Govt won't allow a collapse in stock, bond or real estate values.  The revenues collected by the U.S. Govt depend on elevated stock, bond and real estate prices.  Once these start to collapse, then revenues plummet causing the annual budget deficit to balloon higher.  If the budget deficit was $583 billion (that's what the Govt reports) in 2015 ,then what happens when the market cracks and highly inflated stock, bond and real estate prices collapse?

Well, we already experienced that in 2008.  Here is the most recent update of the U.S. Retirement Market as of Q1 2016:

U.S.-Total-Retirement-Market-Q1-2016

The total U.S. Retirement Market collapsed 21% from 2007 to 2008 ($17.7 trillion down to $13.9 trillion).  The current U.S. Retirement market is valued at $24.1 trillion.  When the U.S. broader markets finally crack, I forecast a 50% decline in the U.S. Retirement market in the first wave.  This could take place over a few years.  A 50% decline would put the U.S. Retirement market at $12 trillion, a little less than what it was in 2008.

Read More @ SRSRoccoReport.com

Gold Daily and Silver Weekly Charts – The Men Who Sold the World

Posted: 30 Jun 2016 08:30 PM PDT

from Jesse's Café Américain:

“You go into these small towns in Pennsylvania and, like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing’s replaced them. And they fell through the Clinton administration, and the Bush administration, and each successive administration has said that somehow these communities are gonna regenerate and they have not.

And it’s not surprising then they get bitter, they cling to guns or religion or antipathy toward people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”

Barack H. Obama, San Francisco Fundraiser, April 11, 2008

“The problem of the last three decades is not the ‘vicissitudes of the marketplace,’ but rather deliberate actions by the government to redistribute income from the rest of us to the one percent. This pattern of government action shows up in all areas of government policy.”

Dean Baker

“If the IMF's staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we're running out of time.”

Simon Johnson, The Quiet Coup

Today was a double-header of discouragement in how quickly the pampered plutocrats are dismissing any possible lessons they might have taken from the Brexit.

Read More @ Jessescrossroadscafe.blogspot.ca

The Collapse Of Western Democracy

Posted: 30 Jun 2016 07:27 PM PDT

Authored by Paul Craig Roberts,

Democracy no longer exists in the West. In the US, powerful private interest groups, such as the military-security complex, Wall Street, the Israel Lobby, agribusiness and the extractive industries of energy, timber and mining, have long exercised more control over government than the people. But now even the semblance of democracy has been abandoned.

In the US Donald Trump has won the Republican presidential nomination. However, Republican convention delegates are plotting to deny Trump the nomination that the people have voted him. The Republican political establishment is showing an unwillingness to accept democratic outcomes.

The people chose, but their choice is unacceptable to the establishment which intends to substitute its choice for the people’s choice.

Do you remember Dominic Strauss-Kahn? Strauss-Kahn is the Frenchman who was head of the IMF and, according to polls, the likely next president of France. He said something that sounded too favorable toward the Greek people. This concerned powerful banking interests who worried that he might get in the way of their plunder of Greece, Portugal, Spain, and Italy. A hotel maid appeared who accused him of rape. He was arrested and held without bail. After the police and prosecutors had made fools of themselves, he was released with all charges dropped. But the goal was achieved. Strauss-Kahn had to resign as IMF director and kiss goodbye his chance for the presidency of France.

Curious, isn’t it, that a woman has now appeared who claims Trump raped her when she was 13 years old.

Consider the political establishment’s response to the Brexit vote. Members of Parliament are saying that the vote is unacceptable and that Parliament has the right and responsibility to ignore the voice of the people.

The view now established in the West is that the people are not qualified to make political decisions. The position of the opponents of Brexit is clear: it simply is not a matter for the British people whether their sovereignty is given away to an unaccountable commission in Brussels.

Martin Schultz, President of the EU Parliament, puts it clearly: “It is not the EU philosophy that the crowd can decide its fate.”

The Western media have made it clear that they do not accept the people’s decision either. The vote is said to be “racist” and therefore can be disregarded as illegitimate.

Washington has no intention of permitting the British to exit the European Union. Washington did not work for 60 years to put all of Europe in the EU bag that Washington can control only to let democracy undo its achievement.

The Federal Reserve, its Wall Street allies, and its Bank of Japan and European Central Bank vassals will short the UK pound and equities, and the presstitutes will explain the decline in values as “the market’s” pronouncement that the British vote was a mistake. If Britain is actually permitted to leave, the two-year long negotiations will be used to tie the British into the EU so firmly that Britain leaves in name only.

No one with a brain believes that Europeans are happy that Washington and NATO are driving them into conflict with Russia. Yet their protests have no effect on their governments.

Consider the French protests of what the neoliberal French government, masquerading as socialist, calls “labor law reforms.” What the “reform” does is to take away the reforms that the French people achieved over decades of struggle. The French made employment more stable and less uncertain, thereby reducing stress and contributing to the happiness of life. But the corporations want more profit and regard regulations and laws that benefit people as barriers to higher profitability. Neoliberal economists backed the takeback of French labor rights with the false argument that a humane society causes unemployment. The neoliberal economists call it “liberating the employment market” from reforms achieved by the French people.

The French government, of course, represents corporations, not the French people.

The neoliberal economists and politicians have no qualms about sacrificing the quality of French life in order to clear the way for global corporations to make more profits. What is the value in “the global market” when the result is to worsen the fate of peoples?

Consider the Germans. They are being overrun with refugees from Washington’s wars, wars that the stupid German government enabled. The German people are experiencing increases in crime and sexual attacks. They protest, but their government does not hear them. The German government is more concerned about the refugees than it is about the German people.

Consider the Greeks and the Portuguese forced by their governments to accept personal financial ruin in order to boost the profits of foreign banks. These governments represent foreign bankers, not the Greek and Portuguese people.

One wonders how long before all Western peoples conclude that only a French Revolution complete with guillotine can set them free.

The New Narrative For Earnings: Blame Brexit

Posted: 30 Jun 2016 07:00 PM PDT

Every quarter there is always a fallback narrative put forth as to why companies fail to meet earnings expectations, and we now have that narrative for the rest of 2016 (and perhaps through 2025): Brexit.

As we discussed yesterday, as we enter into Q2 earnings season the main focus on all earnings calls will be to what extent Brexit will impact business for the rest of the year. Will firms guide down materially due to the UK referendum, or will guidance largely not be impacted, this is going to be the main focus of analysts and investors. To wit:

the main focus (by far) will be on the CQ2 earnings season (the first few reports will hit during the week of 7/11 but the heaviest volume will be during the week of 7/18 and 7/25). The CQ2 earnings season will be particularly important as investors are eager to hear updates from CEOs/CFOs on the extent to which Brexit-related disruptions materially impacted the outlook for their businesses. If the tone on the Jul/Aug conf. calls sounds relatively similar to the Apr/May updates (i.e. Brexit is acknowledged but doesn’t dramatically change H2 guidance) that would go a long way towards alleviating investor concern. Prior to the 6/23 referendum investors were penciling in a ~$130 SPX figure for ’17 – if that number only has a couple of dollars of downside stocks will continue stabilizing.

Almost right on cue, here is Reuters today planting the seed that Brexit can now be used as an excuse for firms that need to lower guidance without any pushback.

From Reuters

Foreign exchange volatility and economic uncertainty after Britain's vote to leave the European Union have imperiled a projected profit rebound in the United States, where companies have been stuck in an earnings recession since last year.

 

U.S. companies doing business abroad are at particular risk because of a jump in the dollar since last week's referendum and expectations of a potential stumble in European economies.

 

A strong dollar and plummeting oil prices slammed U.S. corporate earnings starting in 2015, but the stabilization of crude prices and the dollar in recent months has led investors to bet on a return to modest growth starting in the third quarter.

 

As the second-quarter reports gets underway in the coming weeks, executives' comments about the so-called Brexit's potential effects could alter Wall Street's expectations of when the profit slump will end.

 

"This adds more fuel to the fire, that the so-called spurt in growth in the second-half of the year is going to be really tough to achieve," said Synovus Trust Company Senior Portfolio Manager Daniel Morgan, who believes analysts are too optimistic.

To add to the narrative, Reuters notes that some companies such as Carnival are already warning on the impact Brexit will have on full-year earnings targets.

Some U.S. companies are already voicing caution about Brexit.

 

Cruise ship operator Carnival Corp (CCL.N) warned in its quarterly report on Tuesday that Britain's withdrawal from the European Union could affect global consumer confidence.

 

Chief Financial Officer David Bernstein estimated on a conference call that weakness in the pound and euro would have an eight-cent impact on Carnival's full-year earnings per share, although he said higher customer demand would make up for that and he did not reduce his outlook.

While it is true that there may be some impact on earnings related to Brexit, shifting the narrative solely to Brexit in order to mask the fact that the global economy is already stunningly weak is a sad, yet predictable tactic.

And as a reminder, 2016 outlooks have been tweaked to the downside long before the UK referendum.

As we said, none of this really matters as any and all misses that do take place will conveniently be blamed on Brexit as a "one-off" event, and P/E multiples which are already in their 99th percentile will continue to all time highs.

FREXIT : France EU exit referendum possible -- Le Pen

Posted: 30 Jun 2016 06:40 PM PDT

French National Front leader, Marine Le Pen, says that the British exit from the EU clears the way for a referendum in France as well. Richard Quest reports. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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British bonds go negative as Bank of England plans more money creation

Posted: 30 Jun 2016 06:39 PM PDT

Carney Prepares for 'Economic Post-Traumatic Stress'

By Emily Cadman
Financial Times, London
Friday, June 30, 2016

The Bank of England is preparing to unleash another round of monetary stimulus as it battles to contain the economic fallout of The UK's decision to leave EU.

In a stark warning to politicians, governor Mark Carney said a downturn was on its way and Britain was already suffering from "economic post-traumatic stress disorder."

He said the central bank would take "whatever action is needed to support growth," which probably included "some monetary policy easing" in the next few months, in an attempt to reassure the markets and the public.

But Mr. Carney also said that central bankers could do only a limited amount to mitigate the pain.

Sterling fell more than 1 percent to $1.32 as traders began preparing either for rates to be cut to historic lows, more quantitative easing, or a combination of both. The pound hit $1.50 just before the results of the referendum on EU membership last week. Equities rose, with the FTSE 100 index closing up 2.3 percent on the day.

British government bond yields entered negative territory for the first time following Mr. Carney's speech, with the yield on one two-year bond hitting -0.003 percent. This put the UK alongside countries with negative yields including ­Germany and Japan. The global figure for government bonds in negative yield has soared to $11.7 trillion as borrowing costs around the world collapse. ...

... For the remainder of the report:

https://next.ft.com/content/ec42a3ba-3ed3-11e6-8716-a4a71e8140b0



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"Off The Grid" Indicators Reveal True State Of U.S. Economy

Posted: 30 Jun 2016 06:32 PM PDT

By Nick Colas of Convergex

Summary: Our basket of unorthodox economic indicators shows a U.S. economy that is growing, but at a very slow pace and with a notable sense of social unease.  On the plus side, used car prices are defying all expectations by remaining robust – that helps trade-in values for new car purchases.  Dealer inventories of new cars are also in good shape.  Food stamp program participation is trending lower, although +44 million Americans (14% of the total population) still need government assistance to eat.  On the cautionary side of the coin, large pickup truck sales have turned negative – a proxy for small business confidence in a range of industries.  Consumer spending per day is declining, and our Bacon Cheeseburger Index is still flashing a deflationary warning.  Lastly, the FBI reports that there have been 11.7 million background checks for firearm sales through May.  At this rate, total year sales could reach 28 million, versus 8-9 million before the Financial Crisis.

We've been doing these "Off the Grid" indicator reports for years, and the most common question we get about them is "Why"?  As in "Why do we care about data points that policymakers don't talk about?"   And "Why does any of this matter?"

Now we have an example of why: Brexit.  To look at the standard economic talking points, the British people should have been happy to go with the status quo and "Remain".  Consider these customary measures of employment, inflation, output, and well-being:

On the plus side of the ledger:

  • The auto industry is a large employer of American workers who do not have a college degree. This cohort has had a tough economic time since before the Financial Crisis, and auto industry jobs pay well.  Keeping auto assembly plants running at stable line rates (and avoiding even temporary layoffs) is therefore important to this often overlooked cohort.
  • Currently, dealer inventories of cars and trucks are in good shape at 59 days supply.  The ideal number is 60.  This means as long as light vehicle demand remains constant, automakers can keep to their Q2 and Q3 build schedules.
  • Used car prices remain surprisingly robust. Auto auction company Manheim publishes an index of used vehicle values, and the most recent data shows prices remain at 2011 levels.  That's a positive for new car and truck demand, since potential buyers usually have a vehicle to trade in at the dealer or sell privately.  The better the value of that car or truck, the more likely the consumer will be able to afford a new vehicle.
  • Fewer people are Googling "I want to sell my kidney". No joke – this has been a top 3 autofill for Google when you enter "I want to sell my" for the last 2 years.  It has been replaced with "Furniture".
  • Participation in the Supplemental Nutrition Assistance Program (aka food stamps) is slowly declining. The most current roster has 44.3 million Americans in the program, down from 45.6 million a year ago. It is hard to say how much of this is better economic conditions versus reductions in coverage (childless single people have become illegible for the program in some states).  Worth noting: even at 44 million people, that is still 14% of the entire US population.  Before the Financial Crisis, there were less than 25 million in the program.

And some points of concern:

  • Large pickup truck sales are down year-over-year. This is one of our favorite indicators of small business growth in "Real America" (i.e. not coding the latest food delivery or dating app).  May sales were down 3.1% from last year, one of the worst comparisons since mid 2011.
  • Gallup's consumer survey of daily spending patterns shows the average American spending $93/day in out of pocket expense, up from $91/day last year but lower than the $98/day of 2014.
  • People are buying more precious metals than mutual funds. The six month rolling averages of U.S. Mint sales of gold and silver bullion coins are: $85 million (Silver) and $65 million (Gold). Both are higher than a year ago.  By contrast, US mutual funds have seen a total of $31 billion in redemptions this year.
  • Our Bacon Cheeseburger Index – an equal weighted measure of the CPI inputs for bacon, ground beef and cheese – is still in deflationary territory for the second consecutive quarter at -2.5%. Don't laugh – this measure of real world inflation (and therefore one that informs consumer expectations) was flashing a warning sign long before Chair Yellen and the Fed publicly revised their long term growth forecasts lower earlier this month.

We'll close on one point that isn't so much economic as social – the number of FBI background checks for firearm sales. This data is available monthly, and through May it shows that Americans have done the paperwork to make 11.7 million legal purchases of one gun or more. Taking that as a run rate for the year, 2016 could see 28 million firearm sales using the FBI check data as a proxy for transactions. That compares to a three year rolling average of 21.7 million.  Since 2007, the FBI has processed over 150 million firearm purchase background checks. That is one for every two Americans.

This is obviously a hot topic issue in a presidential election year, and we have no desire to touch this particular third rail of American politics.  From an economic and social standpoint, however, we think it is important to understand the numbers behind the debate. Before the Financial Crisis, the FBI typically processed 8-10 million checks per year. This year, that number might be 3x higher. That is a lot of guns.

Warning -- Police To Turn Off Your iPhone

Posted: 30 Jun 2016 05:44 PM PDT

Yet another push is being to allow big brother access to your cellphone remotely to shut it off when they don't want you to record something that they are trying to hide. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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Silver and Gold Prices will Move Much, Much Higher - Better Buy Your Ticket Now, or you'll Miss the Train

Posted: 30 Jun 2016 05:14 PM PDT

30-Jun-16PriceChange% Change
Gold, $/oz1,318.40-5.50-0.42%
Silver, $/oz18.580.221.19%
Gold/Silver Ratio70.950-1.142-1.58%
Silver/Gold Ratio0.01410.00021.61%
Platinum1,021.5010.201.01%
Palladium598.156.651.12%
S&P 5002,098.8628.091.36%
Dow17,929.99235.311.33%
Dow in GOLD $s281.134.841.75%
Dow in GOLD oz13.600.231.75%
Dow in SILVER oz964.911.360.14%
US Dollar Index96.070.270.28%

Cannot cover everything in one day, so some spilleth over from one day to the next. I mean, of course, the performance of platinum & palladium last 2 days. 

Yesterday platinum shot up $32.40 (3.3%), and another $10.20 today to close at $1,021.50. Chart's here, http://schrts.co/gP7sGo Platinum has completed a sloppy head and shoulders bottom that began last July. After a false breakout through the neckline in May, it fell back but today broke out above the neckline and above the 50 DMA. Ready to boogie. 

On Wednesday Palladium jumped $19.3 (3.4%) & added another $6.65 (1.1%) today, ending at 598.15. That close carried it above the 20, 50, and 200 day moving averages, and confirms an earlier breakout through the short term downtrend line. Also ready to boogie. Chart, http://schrts.co/dY8ozq 

If you're going to swap gold for platinum, you'd better get about it. The gold-platinum spread is screaming down, from $347.40 on 27 June to $296.30 today, and about to puncture the uptrend line. 
Prince Grigory Aleksandrovich Potemkin-Tavreski was a favorite of Catherine the Great, a little too favorite, in fact. When Catherine was about to visit the southern provinces he was governing, he (allegedly) constructed façades of houses & filled the fake streets with actors paid to look like happy villagers. While the official inspection procession slowly made its way to the next spot, the Potemkin village was dismantled and moved with the actors to that next spot, the village re-assembled, and the actors positioned. The region's prosperity & happiness impressed the inspectors & Catherine. 

Last three days our modern day Potemkins, the central banks, and the Nice Government Men, have been building their own Potemkin villages in stocks. It wouldn't do for the inspectors at the end of 2 Quarter 2016, the end of the first half, to see stocks at those Brexit rabbit-punched levels. So they spent three days straining themselves to pump those stocks up for respectable end-of-quarter numbers. Like Potemkin's village, 'twill disappear as soon as the inspection has passed. 

Actually comparing Potemkin to those criminal central bankers is an insult to a man who, on balance was a great leader. 

US dollar index came back today, rising 27 basis points (0.28%0 to 96.07. That took the euro down and killed its phony dead varmint bounce. It lost 0.21% to $1.1096. Yen lost 0.25 to 96.85. 

Dow added another 235.31 (1.33%) to end at 17,929.99. Interesting, when you view the 5 day chart, that both Tuesday and Wednesday began with a big jump up, as if some big buyer came in all at once, and that gulled the rest into buying. Never mind. S&P500 added 28.09 (1.36%). 

So far all this is no more than a successful transit back up to resistance. A failure here besmirches the chart with a trail of lower highs and lower lows on the chart. 

Gold closed down $5.50 (0.4%) at $1,318.40 but silver rose another 21.8¢ (1.2%) to 1858.2¢. Those were the Comex closes. 

That don't half tell the story. Silver's high today at 1875 was its highest price since 12 September 2014. In the aftermarket silver kept right on climbing that mountain, clutching handholds in the rocks and traded at 1877.5¢. One website I use quotes another market where the high was 1889¢. Silver has gained 100¢ in the last three days. 150¢ since the 21st. 

Silver's strength reflects in the gold/silver ratio, which dropped today 1.6% to 70.950. It has gapped down two days running, and is nearing a new low for the move that began over 84 in March. The ratio has plunged almost 16% since 26 February 2016. Look at the chart for yourself, http://schrts.co/kh9gOy 
It appears silver & gold are NOT going to snooze through the summer, as they usually do. 

Silver & gold will move much, much higher. Better buy your ticket now, or you'll miss the train. 

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

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 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.

Prophecy Update End Time Headlines 6/30/16

Posted: 30 Jun 2016 04:50 PM PDT

A fast paced highlight and review of the major news stories and headlines that relate to Bible Prophecy and the End Times… The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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Silver Surges To 21-Month Highs, Gold-Ratio Crashes

Posted: 30 Jun 2016 03:35 PM PDT



While gold surged to its highest since March 2014 on Brexit; Silver is nearing $19, up almost 9% since Brexit, breaking above Jan 2015

Full Speech: Donald Trump Delivers Remarks on Trade in Manchester, NH (6-30-16)

Posted: 30 Jun 2016 03:23 PM PDT

Thursday, June 30, 2016: Full replay of Donald Trump's remarks on trade in Manchester, NH at the Former Osram Sylvania Building. Full Speech: Donald Trump Delivers Remarks on Trade in Manchester, NH (6-30-16) The Financial Armageddon Economic Collapse Blog tracks trends and forecasts...

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Janet Yellen Warms up the Helicopters

Posted: 30 Jun 2016 02:55 PM PDT

This post Janet Yellen Warms up the Helicopters appeared first on Daily Reckoning.

Look, up in the sky! It's a bird! It's a plane! No, it's… it's… Janet Yellen in a helicopter with bags of cash.

No kidding. That's the Fed's plan when the next recession hits. The Fed's Dear Leader coming to the rescue with airdrops of free cash for everyone. What could possibly go wrong?

At a recent press conference, Federal Reserve Chairwoman Yellen admitted that the Fed would consider using "helicopter money" in an extreme downturn. What's "helicopter money"?

It's a phrase used to describe when governments print massive sums of money and then "drop" them on the economy… hoping for the best. Sound insane? It is.

But they're just trying to help by "stimulating" the economy… or what you could call their "Friends and Family Plan."

But doesn't economic growth come from savings and investment? Silence.

Today, you can supposedly create real economic growth right out of thin air. Just print the money and start giving it away for free. It's fake money of course, but we pretend it's real. See how easy it is to hoodwink the masses?

To comfort the proletariat, Yellen said that "helicopter money" would only happen in "abnormal" circumstances. Kind of like the "abnormal" zero interest rates (soon to be negative) that we've had for an "abnormally" six-plus years. Abnormal is clearly the norm now.

In other words, count on it. Helicopter money is coming the moment the S&P 500 takes a serious downturn.

Ever since the dotcom bubble, the Fed and other central banks have tried to force banks to lend more to spur economic growth coming out of financial crises. What if the growth is fake or unsustainable? No matter. Pay for it another decade. They started with zero interest rate policy (ZIRP). But that money hasn't gone out into the real economy. It's remained with the banks.

And what a great deal for them! They borrow for zero then use the cash to make billions scalping every day using high-frequency trading.

When ZIRP didn't force people to invest in Timbuktu condos, central banks in Europe and Japan moved to negative interest rate policy (NIRP). The thinking goes that NIRP would surely force people to borrow, spend and buy those Timbuktu condos instead of paying interest on their savings.

Think about how crazy all this is. Force average citizens to choose between paying interest on their savings or investing in casino investments engineered by the central banks to collapse at any moment. But none of this is working — whatever the hell "working" means to people like Yellen.

Savings rates in NIRP countries are actually going up. And in Japan, fearful citizens have started hoarding cash. The Japanese are buying safes in record numbers? You bet. So what do you think people will do when Yellen makes like Santa Claus and starts handing out free money? Do you think that will instill confidence in consumers to spend more as opposed to saving for what they instinctively know is a coming meltdown? Do you think the Fed's actions will encourage companies to make additional capital investments in their businesses instead of hunkering down for the collapse they also know is coming?

"Helicopter money" is the Fed signaling to the world: "Yeah, we've lost control. We have no idea what the hell we're doing."

Since the financial crisis in 2009, central banks have printed $12.3 trillion of money and made 654 interest rate cuts to support the global economy.

What do we have to show for it?

Well, it's obviously been great for Wall Street billionaires and stock indexes. But the rest of the experiment has been a huge bust. It's devastated those who rely on interest income for survival. Plus, we now have $200 trillion in worldwide debt, asset bubbles galore and stagnant global economic growth. Usually, when the sink is overflowing, smart people turn off the faucet. But the Fed is looking to increase the water flow.

And if the Fed doesn't come up with a new scheme to artificially goose the economy after NIRP failure, what's the alternative?

A massive deleveraging of credit, a stock market collapse and a prolonged recession. A clearing out of the excesses of the business cycle used to be normal. But do you think Yellen & Co. are going to let "normal" happen on their watch? As soon as the U.S. economy slips into recession, it's only a matter of time before the debasement of paper money will continue unabated.

And more people will be looking for the safety of gold as they have in recent months. Gold surged to a three-year high last week.

I don't prefer chaos. But if it's going to happen, you should be ready… long before you hear the sound of helicopters in the sky.

Regards,

Michael Covel
for The Daily Reckoning

The post Janet Yellen Warms up the Helicopters appeared first on Daily Reckoning.

BREXIT ENDGAME of ALL PAPER CURRENCIES Andy Hoffman

Posted: 30 Jun 2016 02:30 PM PDT

 Economic collapse and financial crisis is rising any moment. Getting informed about collapse and crisis may earn you, or prevent to lose money. Do you want to be informed with Max Keiser, Alex Jones, Gerald Celente, Peter Schiff, Marc Faber, Ron Paul,Jim Willie,Paul Craig Roberts, and...

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Alasdair Macleod: The prospects for money

Posted: 30 Jun 2016 02:12 PM PDT

By Alasdair Macleod
GoldMoney.com, St. Helier, Jersey, Channel Islands
Thursday, June 30, 2016

In my view, this new bout of turmoil in financial markets is the prelude to the final demise of government currency.

If I'm right, a long-expected collapse in the purchasing power, and of the very concept of fiat currency, will evolve from current events. The purpose of this article is to explain why monetary theory predicts a currency collapse.

The question at the heart of today's market instability is the validity of fiat currency; that is to say, forms of money issued and sanctioned by individual governments, with no backing other than faith in those governments' creditworthiness, and the enforcement of its use by law. The risks they impose on all of us will be evidenced one day by both the speed of the fall in each individual fiat money's purchasing power, and inevitably by their comparison with gold's more stable purchasing power. Essentially, an awareness of the dangers of unsound money will gradually become evident to every economic actor.

So far, or at least since the days when fiat money was freely exchangeable for gold, central banks have managed to enforce upon us their currencies as money, originally on the basis they were gold substitutes. That pretense was finally dropped in 1971. The purchasing power of fiat currencies has never been seriously challenged since, except in relatively few extreme cases, such as Zimbabwe and Venezuela. Not even the financial crisis eight years ago threatened a collapse in fiat currencies, when banks had to be rescued with unlimited extra quantities of money and credit. ...

... For the full commentary:

https://www.goldmoney.com/research/goldmoney-insights/the-prospects-for-...



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Market Freak Show -- Max Keiser

Posted: 30 Jun 2016 02:07 PM PDT

 In this episode of the Keiser Report from Toronto, Max and Stacy discuss the housing market 'freak show' put on by central bankers. In the second half, Max interviews Roy Sebag and Josh Crumb of Bitgold.com/Goldmoney.com about their unique gold platform and the latest in the gold market....

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Islam Exposed -- BREAKING Masses of ISLAM muslim refugees converting to Christianity June 30 2016

Posted: 30 Jun 2016 02:04 PM PDT

REAKING Masses of ISLAM muslim iraq syria africa Afghanistan etc refugees converting to Christianity June 30 2016 News European churches say growing flock of Muslim refugees are converting to Christianity The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,...

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Cheap gold mines disappear as buyers splurge for surging bullion

Posted: 30 Jun 2016 01:39 PM PDT

By Luzi-Ann Javier
Bloomberg News
Wednesday, June 29, 2016

So much for the run on cheap gold mines. Producers who were forced by slumping prices to unload assets last year are regaining leverage.

With bullion off to its biggest rally to start a year in four decades -- aided by the U.K.'s vote to quit the European Union -- mine buyers are paying higher premiums and the pace of deals is accelerating, data compiled by Bloomberg show. The value of reserves held by major producers has almost doubled since the third quarter of last year, according to Bloomberg Intelligence.

The revival comes after a three-year slump led to losses, rising debt, and a fire sale of assets. With valuations dropping, private equity firms and companies including Zijin Mining Group Ltd. pounced. The number of acquisitions worth at least $1 million rose 14 percent last year to 192, the first increase since 2010, data compiled by Bloomberg show. But now investors are pouring money into gold funds, and prices are near the highest in more than two years, boosting premiums for available mining assets that are getting harder to find. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-06-29/cheap-gold-mines-disap...



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Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana
http://neworleansconference.com/

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

https://jeffersoncompanies.com/landing/2014-av-powell

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

http://www.goldrush21.com/order.html

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

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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:

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To contribute to GATA, please visit:

http://www.gata.org/node/16

Gold Daily and Silver Weekly Charts - Hi Yo Silver!

Posted: 30 Jun 2016 01:37 PM PDT

London gold trade agrees on reforms to boost transparency

Posted: 30 Jun 2016 01:34 PM PDT

Will anyone ask them how much leasing and swapping business they're doing for central banks, so the new transparency regime can begin with a "no comment"?

* * *

By Clara Denina
Reuters
Thursday, June 30, 2016

The London Bullion Market Association has taken steps to help to preserve London's role as a major global gold trading center by making its management more open and independent, documents seen by Reuters show.

London currently dominates the global over-the-counter gold trade but is facing increasing competition from China. There are also more regulatory demands after scandals over attempts to rig interest rate and currency benchmarks. Several banks have run into trouble with regulators over misdemeanors in their precious metals trading business. ...

The pressure for change is increasing also because China, the metal's largest consumer and producer, is competing with London to increase market share as a price setter with a yuan-denominated gold benchmark.

Currently, the LBMA has a management committee made up of representatives from eight firms including six banks, which are also involved in the trading of bullion.

But a majority of members, including banks, refiners and dealers, voted on Wednesday to create an independent board of directors comprising two bank market makers and three LBMA members.

... For the remainder of the report:

http://www.reuters.com/article/us-lbma-gold-board-idUSKCN0ZG1LQ



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Breaking News And Best Of The Web

Posted: 30 Jun 2016 12:44 PM PDT

Japan’s economy slows further. Deutsche Bank scares everyone. UK in turmoil post-Brexit as Labour votes to oust leader and Boris Johnson drops out of PM race. Stocks recover worldwide as Brexit fears wane. Interest rates continue to fall while central banks consider deeper cuts. Greenspan and Soros warn of major crisis. Gold and silver rise, […]

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

Peter Schiff: “This Is the Match That Ignites the Powder Keg”: Gold Surges As Brexit Sparks Huge Financial Crisis

Posted: 30 Jun 2016 11:40 AM PDT

ShtfPlan

Investment Banks Excited Over Future of Electric Vehicles Using Lithium Ion Batteries

Posted: 30 Jun 2016 11:11 AM PDT

(Originally sent out to premium subscribers of goldstocktrades.com on 6-20-16)

See the update in video form by clicking here…
https://www.youtube.com/watch?v=SsdPhVJSCYA&feature=youtu.be



 

Important developments are taking place in the lithium ion battery sector.  For years we highlighted lithium as the new gasoline.  I highlighted in this article entitled "Lithium-Ion Batteries becoming the fuel of the future" written over two years ago that demand could soar for electric vehicles.

See the article on Seeking Alpha from more than two years ago.
 http://seekingalpha.com/article/2206003-are-lithium-ion-batteries-becoming-the-fuel-of-the-future



Now two years later even the big player investment banks like Goldman Sachs are finally entering the sector.

Listen to Bob Koort, head of Industrials and Materials research for Goldman Sachs Research, explains how lithium could unlock the mass market potential of electric vehicles.

See the video by clicking on the following link:
 https://www.youtube.com/watch?v=gkMN8CN9OBY

I recently sent out a video update highlighting Lithium Americas (LAC.TO or LACDF) and showing the bullish potential the chart was forming pulling back to the 50 Day Moving Average.  The stock bounced off on great volume showing excellent support. 
https://www.youtube.com/watch?v=m4Sx2YtzRes


It would not be a surprise to our readers if institutions are looking to add Lithium Americas as it is the most advanced lithium junior with the highest quality asset.  They are partnered with the lowest cost producer SQM in Argentina and trading on the North American exchanges.  This could become an institutional favorite.

Attention should be paid to a news item which may be finally gaining notice. Lithium Americas (LAC.TO or LACDF) appointed former Tesla Senior Engineer Dr. David Deak as Chief Technical Officer.  
According to his Linkedin profile Dr. Deak managed significant projects at Tesla including processing raw materials from Mine to Gigafactory.

Dr. Deak commented, “I am thrilled to join the executive team at LAC. The Company is on an important mission, and is well positioned to play a critical role in enabling sustainable transportation. The Company’s commitment to advancing its lithium projects comes at a time when the market requires additional sources of lower cost lithium supply. I have known the principals at LAC for several years, and they have consistently demonstrated a creative approach to solutions in both processing technologies and collaborative business structures."

This appointment is a huge boost of confidence for Lithium Americas and may start getting attention from the Battery Investment Community.

http://lithiumamericas.com/LAC_NR_May_2_2016.pdf



Big news was released today by Graphite One (GPH.V or GPHOF) of performance tests on coin cells manufactured from the spheroidal graphite that shows high performance and stability.  Graphite One is developing the Graphite Creek Project in Alaska which is the largest known large flake graphite deposit in the USA.  The Company's PEA is expected to be completed in Q3 2016.  Today's news may draw attention from the battery manufacturers who are looking to improve power output and efficiency.
"Up to this point, EV battery end-users have had to make a choice between systems that deliver high-power (near 100 kW) and high-energy (tens of kW hours between each charge).

Based on these new results and observations made when processing STAX graphite, we will focus our development work on determining whether our STAX-derived SPG can deliver both high-energy and high-power performance," said Graphite One CEO Anthony Huston. "We continue to be encouraged by the naturally occurring properties being revealed in our Graphite Creek graphite." Huston continued, "It is important to note that the economics of our project will not be known at any level of confidence before the completion of a preliminary economic assessment ("PEA"), preliminary feasibility study or feasibility study."

See the full news release by clicking here…


http://www.graphiteoneresources.com/news/index.php?&content_id=249



Finally I would like to revisit Nano One Materials (NNO.V) which may also be bouncing off the 50 day moving average as the investment community begins to see the unique qualities of this company.  Earlier this month they reported that the design phase of the lithium battery material pilot plant has been completed.

The pilot plant should be completed in early 2017 which could simulate full scale production of cathode materials for the lithium ion battery which are lower cost, cobalt free and better performing.   "We have confidence in our piloting concepts," said Nano One Materials (NNO.V) CEO Mr. Blondal, "and they have materialized into a platform that should readily scale. With these activities on target and underway, we are well positioned to execute our business plan and advance our strategic objectives."

See the full news release by clicking here…


http://nanoone.ca/nr_jun7_2016/



Disclosure: I own securities in Lithium Americas, Graphite One and Nano One.  They are also website sponsors.  Owning securities and receiving compensation is a conflict of interest as I could personally benefit from a price/volume increase.  Please do your own due diligence as this is not financial advice!

See my full disclosure by clicking on the following link:

http://goldstocktrades.com/blog/featured-companies-on-gold-stock-trades/



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Brexit Part Of Elite's Predesigned Collapse - Daryl Bradford Smith

Posted: 30 Jun 2016 09:09 AM PDT

The EU was destined to collapse and fail says France based radio host Daryl Bradford Smith 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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#Brexit Global Economic Fallout PETER SCHIFF and STEFAN MOLYNEUX

Posted: 30 Jun 2016 08:30 AM PDT

Economic collapse and financial crisis is rising any moment. Getting informed about collapse and crisis may earn you, or prevent to lose money. Do you want to be informed with Max Keiser, Alex Jones, Gerald Celente, Peter Schiff, Marc Faber, Ron Paul,Jim Willie, V Economist, and many specialists...

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News media won't report market rigging by government even when it's admitted

Posted: 30 Jun 2016 08:01 AM PDT

10:58a ET Thursday, June 29, 2016

Dear Friend of GATA and Gold:

New York Post business writer John Crudele's column today, dispatched to you a couple of hours ago --

http://www.gata.org/node/16555

-- is actually about two scandals, not just the scandal of surreptitious market rigging by governments and central banks.

The second scandal -- maybe the bigger one, since government power is always to be suspected -- is the corruption of mainstream financial news organizations, which run away from reporting market rigging by government even when it is brazenly out in the open. The corrupt news organization identified in this case is Bloomberg News, but since all other major mainstream financial news organizations are almost certainly aware of the information being suppressed by Bloomberg, they are complicit with it.

Crudele wrote:

"These are brief statements credited to German Finance Minister Wolfgang Schaeuble on Wednesday morning by Bloomberg: 'Schaeuble: EU Ministers, G-7 Agreed to Avoid Market Chaos.' 'Schaeuble: Measures to Avoid Market Chaos Have Been Successful.'"

"As far as I could tell, Bloomberg never carried a full story."

In searches of the Bloomberg News Internet site and a general Internet search your secretary/treasurer couldn't find any such Bloomberg story either. Apparently Bloomberg editors spiked the story as soon as the official admission of market rigging emerged.

Crudele continued:

"In case you think those short statements are too vague, consider what Schaeuble had to say before the Brexit vote. According to an earlier Bloomberg story: 'Schaeuble said EU policymakers have safeguards in place to avoid 'chaotic developments' should Britons vote to leave the bloc.'

"Schaeuble added that, should Britain pull out of the EU, 'it's also clear that then you have to do everything possible to avoid chaotic developments. We are well-prepared for that.'

"There you have it. Anyone who still thinks the market righted itself should have his or her head examined."

If you're not completely demoralized, as most people these days are, try using the Bloomberg Internet site's feedback page to ask what happened to the market-rigging story:

http://www.bloomberg.com/feedback/

Of course inquiries to other mainstream financial news organizations would be in order as well. If you get any response, please let me know.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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Right Now: The Case Against Gold

Posted: 30 Jun 2016 08:00 AM PDT

This post Right Now: The Case Against Gold appeared first on Daily Reckoning.

Recent history has been a long and volatile ride for gold investors.

The recent Fed decision…

The "Brexit" leave vote…

Today I want to take a look at gold – and in particular…the case AGAINST the Midas metal…

Starting from a low of about $250 per ounce in mid-1999, gold staged a spectacular rally of over 600%, to about $1,900 per ounce, by August 2011. Unfortunately, that rally looked increasingly unstable toward the end.

Gold was about $1,400 per ounce as late as January 2011. Almost $500 per ounce of the overall rally occurred in just the last seven months before the peak. That kind of hyperbolic growth is almost always unsustainable.

Sure enough, gold fell sharply from that peak to below $1,100 per ounce by July 2015. It still shows a gain of about 350% over 15 years. But gold's lost nearly 40% over the past four years. Those who invested during the 2011 rally are underwater, and many have given up on gold in disgust. For longtime observers of gold markets, sentiment has been the worst they've ever seen.

Yet it's in times of extreme bearish sentiment that outstanding investments can be found — if you know how and where to look. There's already been a change in the winds for gold so far this year.

And using complex dynamic systems analysis, a trusted colleague of mine and I have developed a new thesis and strategy for profiting in the gold market.

The takeaway? Do not buy another ounce of gold until you read what I have to say.

Today, I show you three main arguments mainstream economists make against gold… and why they're dead wrong.

The first one you may have heard many times. "Experts" say there's not enough gold to support a global financial system. Gold can't support all the world's paper money, its assets and liabilities, its expanded balance sheets of all the banks and the financial institutions in the world.

They say there's not enough gold to support that money supply, that the money supply is too large. That argument is complete nonsense. It's true that there's a limited quantity of gold. But more importantly, there's always enough gold to support the financial system. But it's also important to set its price correctly.

It is true that at today's price of about $1,300 an ounce, if you had to scale down the money supply to equal the physical gold times 1,300 that would be a great reduction of the money supply. That would indeed lead to deflation. But to avoid that, all we have to do is increase the gold price. In other words, take the amount of existing gold, place it at, say, $10,000 dollars an ounce, and there's plenty of gold to support the money supply.

In other words, a certain amount of gold can always support any amount of money supply if its price is set properly. There can be a debate about the proper gold price, but there's no real debate that we have enough gold to support the monetary system. I've done that calculation and it's fairly simple. It's not complicated mathematics.

Just take the amount of money supply in the world, the amount of physical gold in the world, divide one by the other, and there's the gold price.

You do have to make some assumptions, however. For example, do you want the money supply backed 100% by gold, or is 40% sufficient? Or maybe 20%? Those are legitimate policy issues that can be debated. I've done the calculations for all of them. I assumed 40% gold backing. Some economists say it should be higher, but I think 40% is reasonable.

That number is $10,000 an ounce. In other words, the amount of money supplied given the amount of gold if you value the gold at 10,000 dollars an ounce is enough to back up 40% of the money supply. That is a substantial gold backing.

But if you want to back up 100% of the money supply, that number is $50,000 an ounce. I'm not predicting $50,000 gold. But I am forecasting $10,000 gold, a significant increase from where we are today. But again, it's important to realize that there's always enough gold to meet the needs of the financial system. You just need to get the price right.

Regardless, my research has led me to one conclusion — the coming financial crisis will lead to the collapse of the international monetary system. When I say that, I specifically mean a collapse in confidence in paper currencies around the world. It's not just the death of the dollar… or the demise of the euro… it's a collapse in confidence of all paper currencies.

In that case, central banks around the world could turn to gold to restore confidence in the international monetary system. No central banker would ever willingly choose to go back on a gold standard.

But in a scenario where there's a total loss in confidence, they'll likely have to go back to a gold standard.

The second argument raised against gold is that it cannot support the growth of world trade and commerce because it doesn't grow fast enough. The world's mining output is about 1.6% of total gold stocks. World growth is roughly 3–4% a year. It varies, but let's assume 3–4%.

Critics say if world growth is about 3–4% a year and gold is only growing at 1.6%, then gold is not growing fast enough to support world trade. A gold standard therefore gives the system a deflationary bias. But that's nonsense, because mining output has nothing to do with the ability of central banks to expand the gold supply.

The reason is that official gold, the gold owned by central banks and finance ministries is about 35,000 tons. Total gold, including privately held gold, is about 180,000 tons. That's 145,000 tons of private gold outside the official gold supply.

If any central bank wants to expand the money supply, all it has to do is print money and buy some of the private gold. Central banks are not constrained by mining output. They don't have to wait for the miners to dig up gold if they want to expand the money supply. They simply have to buy some private gold through dealers in the marketplace.

To argue that gold supplies don't grow enough to support trade is an argument that sounds true on a superficial level. But when you analyze it further you realize that's nonsense. That's because the gold supply added by mining is irrelevant since central banks can just buy private gold.

The third argument you hear is that gold has no yield. It's true, but gold isn't supposed to have a yield. Gold is money. I was on Fox Business with Maria Bartiromo recently. We had a discussion in the live interview when the issue came up. I said, "Maria, pull out a dollar bill, hold it up in front of you and look at it. Does it have a yield? No, of course it has no yield, money has no yield."

If you want yield, you have to take risk. You can put your money in the bank and get a little bit of yield — maybe half a percent. Probably not even that. But it's not money anymore. When you put it in the bank, it's not money. It's a bank deposit. That's an unsecured liability in an occasionally insolvent commercial bank.

You can also buy stocks, bonds, real estate, and many other things with your money. But when you do, it's not money anymore. It's some other asset, and they involve varying degrees of risk. The point simply is that if you want yield, you have to take risk. Physical gold doesn't offer an official yield, but it doesn't carry risk. It's simply a way of preserving wealth.

I believe the primary way every investor should play the rise in gold is to own the physical metal directly. In fact, I always say that at least 10% of your investment portfolio should be devoted to physical gold — bars, coins and the like.

However, before you buy a single ounce of gold, I have an urgent announcement for you.

Fact is I just developed a brand new thesis for gold. This is huge news, too. With what I see shaping up in today's gold market you'll want to act fast on this – click here to get started.

Regards,

Jim Rickards

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 Right Now: The Case Against Gold appeared first on Daily Reckoning.

#BREXIT 2016: #ILLLUMINATI-FREEMASON Struggles

Posted: 30 Jun 2016 07:33 AM PDT

FREEMASONS over United Kingdom choosing the fate of the BRITISH people. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

[[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]

Gold, Silver, Bonds and Stocks Path Towards Inflation

Posted: 30 Jun 2016 07:05 AM PDT

Yes, it’s another inflation post going up even as inflation expectations are in the dumper and casino patrons just cannot get enough of Treasury and Government bonds yielding 0%, near 0% and below 0%. Feel free to tune out the lunatic inflation theories you’ve found at nftrh.com over the last few weeks.  But if by chance you do want to look, here’s a visual path we have taken to arrive at the barn door, behind which are all those inflated chickens, roosting and waiting.  All sorts of animals will get out of the barn if macro signals activate.

Nigel #Farage on #Brexit and Donald #Trump (Full CNN interview)

Posted: 30 Jun 2016 07:00 AM PDT

Nigel Farage, UK Independence Party Leader, talks to CNN's Richard Quest about the benefit of Brexit. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many...

[[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]

The Greatest Stock Market Crash Ever Imagined Will Happen, Here's Why. By Gregory Mannarino

Posted: 30 Jun 2016 06:40 AM PDT

Trading involves risk and you could lose your entire investment. You and you alone are responsible for your own investment decisions and any consequences thereof. Please invest wisely. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries...

[[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]

Here Comes $20 Silver!

Posted: 30 Jun 2016 06:39 AM PDT

This post Here Comes $20 Silver! appeared first on Daily Reckoning.

After a painful downtrend, silver has embarked on an unstoppable rally.

Now that its 5-year bear market is officially over, silver's ready to make a run at $20 for the first time in nearly two years. That means double-digits gains are in the cards for one of your best performing silver mining trades.

I'll reveal all the details in just minute. But first, let's take a quick look at how precious metals have quickly become one of the best trades of the year…

Gold's hogged the precious metals spotlight since it started ripping higher in February—and deservedly so. After all, gold is one of the best performing assets of 2016. It's up nearly 25% year-to-date. To put that move in perspective, the mighty S&P 500 is just above breakeven on the year.

But silver hasn't earned much ink from the financial press…

Sure, silver kept pace with gold for the first six weeks of the year. But in mid-February gold started to outshine its less lustrous cousin. At the time, gold and other metals were making the most dramatic moves. Earlier this year, we also had the opportunity to book gains on aluminum producers and miners as other precious metals surged.

Meanwhile, silver consolidated.

Silver didn't jump to new highs until mid-April (that's when we first hopped onboard for a longer-term trade). After another sharp pullback in May, silver is back in action. This time, it's even sprinting ahead of gold…

Silver-DR

Silver's breaking out and not looking back. While gold is up 25% this year, silver's 2016 gains have now topped 32%. After yesterday's 3% move higher, silver is on a fast track to $20. Silver doesn't give a damn about Brexit or the monster back-and-forth moves the major averages have posted this week. This is one of the cleanest breakouts on the market right now…

Of course, this week's breakout also gives you another chance to jump into a hot silver miner trade.

You're already up more than 20% on our favorite silver play, Silver Wheaton Corp. (NYSE:SLW). This week's fresh breakout gives you a chance to add to your position—or pull the trigger on a fresh trade if you missed our initial report back in April.

I know it might seem crazy to grab shares of a stock that's already delivered gains of more than 20% in just a couple of months. But this week's breakout to new 2016 highs is an ideal scenario for an explosive short-term trade. Silver is looking to build on its gains this morning. And the newfound momentum could easily push mining shares higher into next week and beyond.

Hop on this trade today and ride the next wave of the rally. $20 silver is in sight…

Sincerely,

Greg Guenthner
for The Daily Reckoning

P.S. Make money in a falling market — sign up for my Rude Awakening e-letter, for FREE, right here. Stop missing out on the next big trend. Click here now to sign up for FREE.

The post Here Comes $20 Silver! appeared first on Daily Reckoning.

Ron Paul: The End (of the EU) is Near

Posted: 30 Jun 2016 06:26 AM PDT

The CNBC click-bait headline for their Ron Paul interview surely had some readers thinking they needed to check to see if they were stocked up on bullion and bullets, but, the former Congressman from Texas was just talking about the European Union. Familiar themes here – rampant central bank money creation, serial financial bubbles, widespread malinvestment, [...]

Silver Surges, Up 16% In Dollars In Month as Breaks Out Above $18

Posted: 30 Jun 2016 05:59 AM PDT

Silver is another 0.5% higher today after yesterday’s 3% gains when silver flew through resistance at the $18 level to close at $18.26/oz. Silver has surged by similar amounts in euros and by 22% in beleaguered sterling.

JPMorgan beats traders in silver futures rigging lawsuits

Posted: 30 Jun 2016 05:39 AM PDT

By Jonathan Stemple
Reuters
Wednesday, June 29, 2016

NEW YORK -- JPMorgan Chase & Co. on Wednesday won the dismissal of three private antitrust lawsuits, including from hedge fund manager Daniel Shak, accusing the largest U.S. bank of rigging a market for silver futures contracts traded on COMEX.

The lawsuits accused JPMorgan of having in late 2010 and early 2011 placed artificial bids onto the trading floor, harangued employees at metals market COMEX to obtain prices it wanted, and made misrepresentations to a committee that set settlement prices.

This allegedly squeezed traders like Shak, who is also known for playing high-stakes poker, forcing them to post more capital to support their positions in silver futures spreads, and ultimately liquidate them at heavy losses.

U.S. District Judge Paul Engelmayer in Manhattan, however, said the plaintiffs, who also included traders Mark Grumet and Thomas Wacker, did not show that JPMorgan made "uneconomic" bids or intended to rig the market at counterparties' expense. ...

... For the remainder of the report:

http://www.reuters.com/article/us-jpmorgan-lawsuit-silver-idUSKCN0ZF2IG



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http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

John Crudele: Sure looks like governments rigged stocks after Brexit vote

Posted: 30 Jun 2016 05:28 AM PDT

Analyze this, technical analysts.

* * *

By John Crudele
New York Post
Thursday, June 30, 2016

http://nypost.com/2016/06/29/sure-looks-like-governments-rigged-stocks-a...

Ah, that wasn't too bad.

I'm figuring that is what investors were saying on Wednesday after financial markets around the world regained more than half of the losses caused by Britain's shocking decision to leave the European Union.

And if you include the hokey rally the day before the British voted to Brexit -- as Britain's abandonment of the EU is being called -- stocks barely budged.

I say the decision was "shocking" only because the powers that be were pretty sure voters wouldn't dare escape the EU.

The PTB were wrong.

... Dispatch continues below ...



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Now you can take a naive view of what world equities markets have done this past week and conclude that stock prices went down because Brexit might cause all sorts of world economic calamities.

And then -- suddenly and improbably -- investors who had been contemplating such terrible things just days ago suddenly changed their minds. So they bought stocks by the bucketful and turned the market around.

You could think that -- if you are naive and believe, as modern humans mostly do, that crises last a very short time.

But perhaps you'd like to really understand what happened: The stock markets were rescued by governments. In other words, the markets were rigged.

Don't believe me? These are brief statements credited to German Finance Minister Wolfgang Schaeuble on Wednesday morning by Bloomberg: "Schaeuble: EU Ministers, G-7 Agreed to Avoid Market Chaos. Schaeuble: Measures to Avoid Market Chaos Have Been Successful."

As far as I could tell, Bloomberg never carried a full story.

In case you think those short statements are too vague, consider what Schaeuble had to say before the Brexit vote. According to an earlier Bloomberg story: "Schaeuble said EU policymakers have safeguards in place to avoid 'chaotic developments' should Britons vote to leave the bloc."

Schaeuble added that, should Britain pull out of the EU, "it's also clear that then you have to do everything possible to avoid chaotic developments. We are well-prepared for that."

There you have it. Anyone who still thinks the market righted itself should have his or her head examined.

The rigging of the stock market shouldn't surprise anyone. I've been telling you that this has been going on for a long time -- because it has. The Japanese and the Chinese are blatant about their market manipulation.

In fact, Japan -- which is a Group of 7, or G7, nation -- pretty much spilled the beans earlier this week when it rather obviously halted a slide in stock prices on the Tokyo Stock Exchange and caused a big worldwide rally.

And as I've also been saying forever, the rigging of the market was a proposal that went all the way back to 1989, when Robert Heller, who had just left the Federal Reserve Board, suggested that the equity markets be rigged through the purchase of stock index futures contracts.

Heller proposed that this should only be done during emergencies, which the Brexit vote certainly was. But I think the Fed's and G7's definition of what constitutes an "emergency" has been pretty generous.

Should the markets have been -- let's find another word for rigged -- rescued? Propped up? Kept from hurting themselves?

Absolutely. You don't let a panicked child run into the street. You don't let a drunk person drive. And you should definitely allow financial markets to get hold of themselves before they create financial calamities.

Should this be done in secret so that only the financial sector in-crowd knows about it? Absolutely not.

Does rigging, propping up, or saving the market -- whatever you want to call it -- create a very dangerous situation for investors in the future? Absolutely.

Markets are supposed to be rational. Someone is supposed to want to own the stock of a company because that person sees good things happening -- and not because the G7 nations are standing by with a safety net in case something goes wrong.

The riggers may not always be able and willing to intervene, because someone will ultimately be responsible for the bubbles they are blowing. How do stock market fundamentals look right now? Not very good.

According to Greg Harrison, senior research analyst at Thomson Reuters, second-quarter earnings for S&P 500 firms will be down 3.9 percent when they report, which will happen soon.

Even when you take out energy companies -- which are having a particularly hard time -- earnings only gain 0.1 percent.

That's no reason there for a stock market to cheer. The third quarter might be better, says Harrison. Wall Street is looking for 2.2 percent earnings gains overall and 5.1 percent gains if you ignore energy companies.

But the Wall Street analysts who made those predictions are notoriously optimistic, and they have barely factored Brexit into their numbers, despite the fact that they were claiming for weeks that Britain's move out of the EU would be devastating.

And stock prices are still very high when measured by the usual historical standards.

Will the G7 nations be able to keep stock prices aloft? And will their game-playing in the stock market eventually translate into some trickle-down benefit for people who don't gamble in the stock market? That's anyone's guess.

The last thing you should ask yourself, considering what happened in Britain, is this: Will all the manipulation that's now going on fuel the populist revolt we are seeing around the world and make it mightier?

* * *

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Gold and Silver Precious Metals Bull Market Update

Posted: 30 Jun 2016 05:27 AM PDT

Tonight I would like to update some of the precious metals stock indexes as they have been basically consolidating for the last couple of months. This has been healthy for this sector which has been on fire since the middle of January of this year. The first chart for tonight is one of the laggards but you couldn't tell it by looking at the daily chart. The $CDNX, which is a Canadian small cap index, is made up of many precious metal and oil stocks. We've been following this one since it broke above the S&R line back in February. In March it built out its first consolidation pattern for its new bull market which was the blue expanding rising wedge. The blue arrows measures the first impulse move up. After the initial price objective was hit in early May the $CDNX built out another bullish consolidation pattern which was the bullish rising wedge. The price objective for the blue bullish rising wedge is shown by the red arrows. On Monday of this week there was a fairly strong backtest to the top rail but today's price action has now cleared the top rail again after forming the red bull flag as the backtest. It's always a good sign when you see a consolidation pattern sloping in the direction of the main trend.

Silver Is Not Buying the Risk Asset Bounce

Posted: 30 Jun 2016 03:25 AM PDT

Precious metals remain elevated despite the recent rebound in risk assets as silver prices approach new post-Brexit vote highs amid concerning developments relating to the global outlook.  As central banks in advanced economies rapidly test the limits of monetary policy, rising speculation of renewed accommodation in the United States is driving silver prices sharply higher.  While risk assets have managed to bounce after the referendum sent shockwaves across global financial markets, silver prices have continued to gain momentum, not buying the optimism in stocks and reflecting a sense that haven assets will continue to benefit from growing volatility.  Furthermore, more talk about a return to the gold standard could see precious metals reap the rewards of greater influence in the financial system.

Silver Wildcats Part 4 - A Murder of Crows

Posted: 30 Jun 2016 03:00 AM PDT

Jeffrey Lewis

Marc Faber: Holding Gold Is a 'No Brainer'

Posted: 30 Jun 2016 01:00 AM PDT

Brexit is a sideshow to the world economy, and gold remains an important asset in any portfolio, says Marc Faber, editor of the Gloom, Doom and Boom Report.

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