Saturday, July 30, 2016

Gold World News Flash

Gold World News Flash

How To Use the XAU-To-Gold and HUI-To-Gold Ratios

Posted: 29 Jul 2016 10:00 PM PDT


Gold and Gold Stocks Correction Over, Eyeing New Highs

Posted: 29 Jul 2016 09:48 PM PDT

In a bull market corrections can end quickly. One minute you are projecting another 5-10% downside and the next, the market has left lower prices in the dust. A negative reaction to the Federal Reserve statement could have caused lower prices but instead Gold and gold stocks are now primed for new highs. Fundamentally, we know the Fed will do nothing to prevent real rates from remaining negative. Since the trend has turned, Gold and gold stocks have mostly ignored the moronic, empty drivel emanating from these supposed geniuses. Moreover, despite reports of increased potential for a rate hike in September, weakness in precious metals abated and buyers returned.

Gold Stocks Benchmark Battle

Posted: 29 Jul 2016 09:41 PM PDT

The gold-mining stocks have enjoyed enormous gains in their young bull market this year, trouncing all other sectors.  Naturally this radical outperformance has led to surging popular interest in this usually-obscure contrarian sector.  New investors are wondering how to best track its performance, about which gold-stock benchmark is the definitive one to use.  Something of a battle is brewing over new versus old. Benchmarks are very important for stock trading.  Their performances over any given span really help investors and speculators quickly understand how a sector is faring relative to others.  Just one easily-digestible number distills down the collective performances of many stocks.  Benchmarks also provide standards by which the performances of both individual stocks and individual traders can be objectively judged.

Market Report: PMs Appear to Be Breaking Out

Posted: 29 Jul 2016 09:00 PM PDT

by Alasdair Macleod, Gold Money:

Gold and silver drifted this week, continuing last Friday's end-of-week profit-taking, until the FOMC announced on Wednesday afternoon EST that there was to be no change in the Fed Funds Rate.

This was the signal for gold to gain some $20 and silver 75 cents. These moves represented an apparent break-out from the last month's consolidation, and prices for both metals could now be on course to challenge the highs of early July.

Yesterday was a day of consolidation with a fall for gold limited to $2.50, and this morning in early European trade gold opened slightly lower still, at $1330, and silver at $20.00.

This market report will be longer than normal, because there is much to tell about what is going on behind the scenes. Some market followers, presumably relying on overbought indicators, such as the record longs held by the Managed Money category on Comex, were telling us earlier this week that the gold price was due a substantial fall.

Furthermore, the maturing August contract, which ahead of its delivery month ran off yesterday, has been a negative factor. Large amounts have been rolled over into the December contract, a situation that normally allows the bullion banks to work prices sharply lower as Open Interest contracts.

While gold's OI has indeed contracted from record highs, the bullion banks have had only limited success in this quest, and the negative price effect is now behind us.

Read More @

Stock Market Poised for a Big Move — Gold & Silver Updates

Posted: 29 Jul 2016 07:40 PM PDT

Flour Recall at General Mills Expands – Here is What Has Been Recalled

Posted: 29 Jul 2016 07:20 PM PDT

by Anna Scanlon, Natural Society:

General Mills has recently recalled a large selection of its flours due to an outbreak of E. coli. Although no one has died, 46 people have become infected with E. coli, 13 have been hospitalized, and one person has been diagnosed with kidney failure in connection to the E. coli virus. [1]

General Mills stated:

"It is unknown if we are experiencing a higher prevalence of E. coli in flour than normal, if this is an issue isolated to General Mills' flour, or if this is an issue across the flour industry. No illnesses have been connected with flour that has been properly baked, cooked or handled." [1]

All Products Now Part of the Recall

According to General Mills, the following products are now part of the recall. The best by dates (or BB) in bold are new to this expansion:

13.5 ounce Gold Medal Wondra

  • Package UPC 000-16000-18980
  • Recalled Better if Used by Dates 23FEB2017KC through 30MARCH2017, 14MAY2017PK
  • 2 pound Gold Medal All Purpose Flour
    • Package UPC 000-16000-18980
    • Recalled Better if Used by Dates 15MAY2017KC through 05JUN2017KC, 11JUN2017KC, 12JUN2017KC, 13JUN2017KC, 14JUN2017KC, 18JUN2017KC, 01AUG2017KC, 13AUG2017KC through 21AUG2017KC
  • 4.25 pound Gold Medal All Purpose Flour
    • Package UPC 000-16000-12670
    • Recalled Better if Used by Dates 21MAY2017KC, 03JUN2017KC, 01AUG2017KC, 19AUG2017KC, 20AUG2017KC, 21AUG2017KC

      Read More @

Breaking News And Best Of The Web

Posted: 29 Jul 2016 06:44 PM PDT

US GDP disappoints. IMF admits it mishandled Greek crisis. Plunging interest rates turning insurance companies into hedge funds. Oil back in technical bear market. Japan considers 50-year bonds. Companies report fake numbers. Money pours into corporate bonds as sovereign yields go negative. Clinton accepts nomination. Gold and silver miners start reporting earnings.   Best Of […]

The post Breaking News And Best Of The Web appeared first on

What Alan Greenspan Is Most Worried About

Posted: 29 Jul 2016 04:43 PM PDT

Jeff Gundlach is not the only person who is feeling "maximum negative" on Treasuries.

In an interview, none other than the "Maestro" Alan Greenspan, the man whose "great moderation" policy made the current global bond bubble possible, said that he is worried bond prices have risen too high.

Asked if he finds what is happened in the bond market right now "in any way, shape, or form concerning for financial stability", Greenspan replied that "it's obvious that you ought to be looking at the price earnings ratio in bonds to income.  We get very nervous when the stock price index goes to high PE.  We ought to be somewhat nervous when the bond rate does the same.... To believe that we can keep rates down here for very much longer strikes me as to say that human nature is going to change, and that's one thing I wouldn't bet on."

He did not mention that the only reason why there continues to be such an unprecedented stampede into fixed income, pushing yields to record (negative) lows, is because investors are merely frontrunning central banks; they also know that as monetization accelerates and as private supply leave the market, the same central banks will purchase whatever bonds they can find at any price, and that is the only reason why global bond yields are where they are.

Instead he said the following:

The best way to view negative interest rates is to think in terms of the fact of, where, for example, securities denominated in the Swiss franc, the yields on those, versus, for example, the Italian lire as it used to be, the Italian euro now.  But that spread hasn't changed very much for a very long period of time.  So when global deflation takes hold, as it has, all interest rates fall, but the spread doesn't.  So, in order to maintain that spread, Swiss interest rates have got to turn negative.  Now, the question is, how far can they?  Well, there is an arbitrage, that obviously one can get. 


For example, in the United States, if interest rates got very negative, what we would do is all get in to currency in which it's a zero interest rate -- I should say it's a zero cost. We would get into currency, stack it all up in, I would say, in a vault somewhere.  The problem with that arbitrage, obviously, is there's a limited amount of currency you can hold, so at some point, something is going to give.  The initial sign is going to be a big pickup in the holding, for example, of U.S. currency, both here and abroad - sorry, parenthetically, very large part of currency, U.S. currency, is held outside the United States. 

Which reveals an interesting tangent: to Greenspan, a key indicator of when the system begins to tip over is when the run on the US physical currency begins, not so much in the US as abroad.  And speaking of tipping over, Greenspan was quite clear: "it hasn't happened, but it will."

The only thing you can hedge against is the currency, and that's got a physical limit to it.  So there's a downside limit to how far people are willing to pay to say, for example, get into Swiss securities.  And that's when the markets begin to react quite differently.  Hasn't happened yet, but it will.

Remaining on the topic of currency, Greenspan then tied in the issue of surging currency vol, to his favorite topic: unsustainable entitlement costs. Answering a question what is causing global foreign exchange volatility, Greenspan's responded as follows:

I think the cause of it is that there's a very significant amount of uncertainty in the global economy.  It's coming from the fact that, as I indicated before, in the United States, we've got very, very major entitlements problem, which politically, I don't see how we're going to touch.  We went through two conventions.  The word entitlements never got raised, except, let's do it more.  Now, we're going to have to cut back.  There's no physical way to continue doing this without destabilizing the financial system.  So, it will stop, but the problem is that it's going to take a while before the political system adjusts.  So, it's hard for me to see how we get out of this unless we address that problem first.

But more important than his discussion on bonds or currencies, was Greenspan's explanation of "what he is most concerned about", namely stagflation - the same economic problem that we wrote about in early April in a post titled: "The Next Big Problem: "Stagflation Is Starting To Show Across The Economy." The former Fed chairman agrees, as follows:

Three fourths of the major economies, OEC economies for example, have, over the last five years, have had a less than a one percent annual rate of upward growth. The economy can't go anywhere under those conditions, and we're getting a state of stagnation which is not only evident in the United States but pretty much throughout Europe and the far east. And as a consequence of that, it's very difficult to see where the next step is except what I'm concerned about mostly, is stag-flation, meaning I think we're seeing the very early signs of inflation beginning finally to pick up as the issue of deflation fades.

Greenspan is then asked about these two elements, "the stag and the flation. How acute is this problem with productivity, the lack of growth?  Do you see a recession in our future within the next 12, 18, 24 months?"

It's very difficult to say.  In fact, I don't think you can describe the world economies in terms of the old conventional issue of inflation, recession, and the like.  What we are dealing with is a population that is aging very rapidly, and that is inducing a major increase in so-called social benefits, what we in the United States call entitlements.  And that is dominating the whole financial system, and until we come to understand that we have got to slow this rate of growth, which in the United States has been 9% per year since 1965, we are now down to the point where it's taken so much savings out of the economy that we're not getting enough investment, but that has very little to do with whether we're going in a recession or not.  I think we're just in a stagnation state. 

That covers the "stag." How about the "flation"?

Well we're beginning to get a pickup in wages beyond the rate of growth of productivity, and that is usually the best indicator.  But, just as importantly now, is that since money, at the end of the day, is what causes inflation, we have been seeing, since the beginning of the year a significant pickup in the rate of money supply growth, and over the very long-run, it's the ratio of money supply divided by the real GDP capacity to produce, which ultimately determines the price level.  It's a very rough indicator.  It doesn't work for two or three years and then it pops in.  But over the long-run, it's never failed.  And we're in a situation now where looking at the interest rate levels that we're looking at and the inflation rates we're looking at, it's very clear that we're going to be moving reasonably shortly into a wholly different phase.

In retrospect, between the soaring welfare costs, and the upcoming stagflationary hit, it is also very clear why exactly a month ago Alan Greenspan also warned that not only is a crisis imminent but that it is paramount to "return to the gold standard" immediately. We doubt that will happen.

Much more in the full interview below:

Both Silver and Gold Prices Proved Wednesday's Breakouts Genuine

Posted: 29 Jul 2016 04:34 PM PDT

Here's the weekly scorecard:
 22-Jul-1629-Jul-16Change% Change
Silver, cents/oz.1,965.702,031.2065.503.3
Gold, dollars/oz.1,323.101,349.0025.902.0
Gold/silver ratio67.30966.414-0.895-1.3
Silver/gold ratio0.01490.01510.00021.3
Dow in Gold Dollars (DIG$)290.15282.45-7.69-2.7
Dow in gold ounces14.0413.66-0.37-2.7
Dow in Silver ounces944.74907.46-37.29-3.9
Dow Industrials18,570.8518,432.24-138.61-0.7
US dollar index97.4695.49-1.97-2.0

29-Jul-16PriceChange% Change
Gold, $/oz1,349.0016.701.3
Silver, $/oz20.310.150.8
Gold/Silver Ratio66.4140.8171.2
Silver/Gold Ratio0.01510.00010.7
S&P 5002,173.603.540.2
Dow in GOLD $s282.45-3.89-1.4
Dow in GOLD oz13.66-0.19-1.4
Dow in SILVER oz907.46-8.04-0.9
US Dollar Index95.49-1.24-1.3

Great week for metals, not so good for stocks. Gold keeps rising & getting overboughter in the teeth of sky-high CoTs. Stocks are sputtering. Platinum gained 6%! Palladium 3.4%. US dollar index tanked today 
US GDP numbers appeared at less than half what economists expected (1.2% vs. 2.6%), & the Bank of Japan announced puny stimulus measures, contrary to what everyone expected. It was a toxic cocktail for the US dollar index. It skidded 124 basis points (1.28%). See 

The dollar spent part of June and all of July building a rising flat topped triangle, broke out to the upside and promised to rise, rise, rise. Then on the FOMC's news Wednesday that it's not about to raise interest rates, the dollar index sagged. Today's news was a bullet in the head, sending it slicing through its 200, 20, and even 50 DMA far below. In fact, the dollar index has returned to the 95.50 support level we know so well. 

It's the green mile: dollar is a dead man walking -- for a while. 
Well, shut my nat'ral born durn Tennessee fool mouth! The euro actually rose. Lo, 

This is the sort of bogus action that SCREAMS "Nice Government Men! What do I mean? The Euro fell out of it trading range when Brexit hit in June. Formed an even-sided triangle, which nature predicts would break DOWN. Broke down. Then, in three magic-filled days, the euro nixes all that, shoots up through its 20,, 200, & 50 DMAs. Sure. 

Well, if 'tis nature, it means the euro is way stronger than anyone suspected, & all those toiled-paper stuffed European banks aren't really stuffed with toilet paper, & the European economy is fine, & Brexit won't hurt Europe way more than the UK. Thus far nature. 

But suspicion of the NGM says they engineered the (same but upside-down) fall in the dollar for terrorized, toenail-biting fear that the euro would sink suddenly to its natural level, i.e., zero. 

For me, it's no problem understanding. Central banking criminals meet every month at the Bank for International Settlements in Geneva for supper together. Do they talk about the rubber chicken? Or do they discuss who needs what exchange rate? Wow, let me pull off my socks & add that up on fingers & toes. 

Wait! I am plumb forgetful. Did I mention all those European banks failing their stress tests today? Or that Deutsche Bank was among the 12 weakest? What was I thinking about. 

Upon Japanese PM Abe's re-election, speculators expected Big inflation out of the BoJ. Today the BoJ double crossed 'em. Those scrambling to flee left behind a lot of skin. See? 
Here's another one of those Nature/NGM arguments. Yen fell out of a rising wedge in May, but instead of following through to the earth's core, rose again, to much higher highs. Sure, part of that rally may be credited to scared money fleeing Europe or China, but today the yen rose thanks solely to the BoJ announcing anemic inflation moves. 

INFLATION MARKETS. Last fall I began expecting an end to the commodity price deflation in force since 2008. Sure enough, oil, copper, & the CRB rallied. 

Oil rallied from a February low, peaked in June, & yesterday hit its 200 DMA, a likely candidate for a downward correction to the Feb-June rise. Must not drop much lower, though. Chart is here, 

Copper bottomed in January and has traded sideways but higher. Now stands above its 200 DMA. View at 

CRB commodity index double bottomed in January and February and rallied smartly to June. Broke down from its upward channel in July, & hath now reached its 200 DMA. Turnaround time? Chart's here, 

What signifieth all this? If commodities prices keep rallying, it won't be because the global overcapacity spawned by a 20 year central bank inflation has been worked off. Rather, it ominously foretells that the way the central bankers will choose out of the deflation is heavy monetary inflation. Gold & silver are also mumbling that. 

The Gold/Bank Stock Index spread charts the flow of confidence into financial and monetary markets (when it moves down) or into gold (when it moves up). It broke out of its old channel upside in January & soared. Settled back to trade in a downtrending channel. Then it behaved as almost all break-out markets do, it came back to the breakout point for a kiss good-bye and shot up again ot a June (Brexit) peak. 

Yes, it traded back down, but only to the top of that channel, for another kiss good-bye.. In the last three days, having revisited the channel line and its 50 DMA, the GOLD/BKX has turned up again. Y'all stifle the tears: banks have a hard whippin' comin'. 

As yesterday, today stock indices gainsaid each other. S&P500 rose 3.54 (0.16) to 2,173.60 but the Dow Industrials fell 24.11 (0.13%) to 18,432.24. 

I don't really care that stock indices are rising in paper terms, because that answers no questions, butters no bread, boils no turnips, broils no pork chops. Don't tell you a durned thing. So I measure stocks in gold and silver. 

Dow in gold peaked in December & tanked into February. Y'all go look, Make sure I'm not making this up. 

Dow in gold rallied correctively from that 12.558 oz low, then traced out a megaphone reversal. Broke down from that on Brexit, but in the sharp post-Brexit stock rally corrected again. It has now reversed that correction and fallen through its 20 & 50 DMAs, turning decisively down. By the way, only one peak of that rally came near touching the 200 DMA. Weak as hash-house soup, & indicators shout it will fall further. 

Dow in silver, ahhh, look, 

Dow in silver also shows a December high, but has been weaker than the DiG. In June it fell slap through support from the previous two lows, and made a new low at 889 oz. It rallied timidly to 948 oz, then the rally failed and it has since cut again through its 20 DMA. Both these indicators shout that stocks toped against metals in December, & have resumed their primary trend. That trend will take stocks to one to two ounces of gold and sixteen to thirty-two ounces of silver, before it ends. 

Both silver and gold prices proved Wednesday's breakouts genuine. Today Comex gold rose $16.70 (1.25%) to $1,349.00. Silver added 15.2 (0.75%) to 2031.2 

Behold, the beautiful gold chart, 

Y'all forgive me, I promise I'm not just being pig-headed. Rather, I am looking at a gold chart that screams to me, "Higher!" Higher price for three days have confirmed a bullish breakout from the bullish flag. Volume is rising, slightly but rising. MACD is turning up, as is ROC. Today it closed above the former upper channel boundary. "HIGHER!" It's aiming at $1,450. 

Now look at silver, 

Three days it has closed higher out of that pennant formation, three days and above its 20 DMA. It has worked off the RSI overboughtness that prevailed through July's first half. Volume has jumped with price. MACD is turning up. 

And physical gold & silver buyers have dried up. That's not only typical of summer, but also typical of early rises in a new trend. Buyers don't believe the new prices yet, so wait and wait for corrections, but the corrections never come. Finally they panic and buy at higher prices. Odd, people love to buy a rising market. Human nature. 

I reckon silver will hit 2300 - 2400¢ before a real correction bites. 

I've said too much already, so I'm not going to point y'all to the gold & silver weekly & monthly charts that show clear, confirmed breakouts. Just assume I did. 

Y'all enjoy your weekend.

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

No One Can Stop Her... And She Knows It: "This Election Won't Be Fair"

Posted: 29 Jul 2016 04:20 PM PDT

Submitted by Mac Slavo via,

To the left, a shot from Charlie Chaplin’s The Great Dictator; to the right, Hillary’s acceptance speech was a carefully scripted triumph over the democratic process… as demonstrated by her playing with the balloons like the world is her toy.

In a fair election, my best estimate is that Donald Trump would win in a landslide.

But this election will not be fair. In fact, few of them are.

For Trump’s part, there is no doubt that he has been this year’s sensation. A newcomer to politics, he has thrown out all the conventional rules, played by his own, and found a captivated country hanging onto his every word. Love him, hate him, or somewhere in between… no one can look away from the spectacle.

After a war within the party and the convenient disposal of 16 conventional GOP contenders, Trump is now the official Republican candidate and he is in a strong position. Coming out of the relatively calm Republican National Convention and going into the tumultuous DNC, Trump has enjoyed soaring poll numbers while Hillary has been losing ground fast to the scandals and corruption revealed by Wikileaks and other related mouthpieces.

But the fat lady has not sung.

Hijacking the Party, Keeping Dissent Under Wraps

Hillary’s coronation last night as she formally accepted her party’s nomination could hardly have been more forced. The entire Democratic convention has been stage-managed to downplay the overwhelming noise from Bernie supporter who are outraged and feel betrayed by Hillary.

The entire convention has had a certain air to it, a quality that reveals the desperation for power, and the crisp sense of danger that brings with it.


Protesters Rage Against the DNC: “Hillary Didn’t Get the Nomination. The Nomination Was Stolen”


To a casual observer, things might look typical enough, with a few sore losers and pipe dreamers wishing for an ideal country run by decent and fair people that either don’t exist or haven’t figured out how to win an election. But things are not typical – the paradigm is shifting. Politics realigns every 30 years or so, or at least that is the maxim that has held in political science. Only, the last shift has been 30 or 40 years overdue.

There is a reason for that, and the establishment has been fighting to stop the change for the past generation. They have faked out the cycle and kept the population under their thumb (when was the last time you saw a “real” presidential election that wasn’t a means to keeping the status quo?)

But delaying the inevitable won’t hold.

Why Trump Should Win…

As Michael Moore argued, Trump has been preaching the gospel of restoring America’s manufacturing, and is working to woo and turn to “red” the “blue” Rust Belt states where Americans once had strong middle class jobs, especially in Michigan, Ohio, Pennsylvania and Wisconsin. According to Moore’s numbers (which are cited to motivate support for Hillary and opposition to Trump), if Trump captures those key states in addition to the red states that Mitt Romney, a weak candidate, won in 2012, then Trump should win the electoral college:

I believe Trump is going to focus much of his attention on the four blue states in the rustbelt of the upper Great Lakes – Michigan, Ohio, Pennsylvania and Wisconsin. Four traditionally Democratic states – but each of them have elected a Republican governor since 2010 (only Pennsylvania has now finally elected a Democrat). In the Michigan primary in March, more Michiganders came out to vote for the Republicans (1.32 million) that the Democrats (1.19 million). Trump is ahead of Hillary in the latest polls in Pennsylvania and tied with her in Ohio. Tied? How can the race be this close after everything Trump has said and done? Well maybe it’s because he’s said (correctly) that the Clintons’ support of NAFTA helped to destroy the industrial states of the Upper Midwest.

In fact, Moore is right. Nobody wants any more Flint, Michigans (where the water is contaminated and poverty seems to be airborne and contagious), least of all Michael Moore.

Trump’s appeal is much broader than just his sensational antics and controversial statements. He is resonating with America because he is speaking to the wounds of those struggling to cling to what’s left of the middle class American Dream.

And the strength of Trump’s position there is buttressed by the cold fact that the Clinton’s strong support for NAFTA played a major role in the downward spiral of the Rust Belt, and many other parts of the United States.

Trump’s appeal to bringing jobs back to America has to sound like not only a good campaign strategy, but an actual sound idea.

Things have reached a point where nearly every American – regardless of how little they pay attention to news and world affairs – is feeling the damage that has been done. NAFTA, GATT, the WTO and an entire shift into pseudo-governing structures of globalism that have eaten away at the sovereignty of the United States and devoured the prosperity of its people have taken a serious toll on our way of life. And we have all been programmed to take it lying down.

The steady flow of funny money, artificially pumped out by the Federal Reserve has kept many from noticing it, but the real world effects are still hitting people on the street. Not only does the dollar not go as far as it used to, but everything in life is increasing in cost, and getting watered down in value and substance. Society is acting out one big charade, and pretending not to notice the outrage, dissent and anger seeping through the cracks and edges.

Inevitable and determined to win at all costs

Rather than let that burst on her watch, and during the only opportunity she has left in this lifetime, Hillary Clinton and her minions have rearranged all the deck chairs in her favor to force a win. It certainly hasn’t come from the grassroots. Where necessary, the Democratic party has fudged primaries and stolen them outright. The mainstream media has been scripted around her as an anointed figure who is untouchable and beyond reproach. They have stifled exposure of Bernie and would have done so to any other rival… if only any others had dared to enter the race.

Instead, the campaign to elect Hillary became an unrelenting junta to force her into office in spite of the will of the people, the rules of the game or the ever-expanding negative image of the former First Lady, Senator and Secretary of State whose corruption and ties to bad deeds are both legendary and sufficiently documented to warrant life without parole.

There was a never a realistic chance that Hillary would be prosecuted or even reprimanded over her email scandals, because the fix was in a long time ago. Those who would theoretically hold her into account were appointed by her husband, or by President Obama, and their cooperation was assured in private.

Though many have argued that you can’t put lipstick on a pig, that is exactly what has taken place. 2016 is more of a farce than ever… and there is still another round to go.

Only One Persons Stands Between Her and the Presidency

Can anyone else see that the most rigged and stolen election of all time is shaping up? If the Democratic party doesn’t want Hillary, what makes anyone think the entire country wants anything to do with her?

Before you answer that openly, make a strong educated guess about who the next president is going to be… and how many bodies she will have to climb over to get there.

What Wikileaks exposed with Debbie Wasserman Schultz and the DNC, and what the emails have revealed about Hillary and the Clinton Foundation are surely only the tip of the iceberg. The stories of the delegates who were silenced or kicked out of the convention, and many other deceitful acts to destroy dissent and keep up appearances suggest some of the rest of the story… and it is anything but democratic or “of the people” – though very likely the whole of it will never be known.

There is something very, very wrong going on and it is time that everyone – regardless of ideology, party affiliation or politics – needs to face up to. Preliminary evidence indicates strongly that there has been a very carefully orchestrated coup taking place… and if successful, it will have only one logical conclusion:

Total power, at any price, with a facade of support and momentum that just isn’t there from anyone other than a handful of elite billionaires, and a cadre of clients with addresses that are either foreign or based on Wall Street.

If you missed the convention coverage, then you have got to see Hillary playing with the balloons after her speech.

There really is no wondering who she is concerned about… herself, of course.

As I mentioned above, it is reminiscent – even spot on – of Charlie Chaplin’s amazing parody in The Great Dictator, where his version of a Hitler-esque autocrat toys with the world as his plaything.

We are in for a world of hurt if what I think is going to happen turns out. The entire democratic process is being pushed back under the water, and a crude, fake smile is broadcast for appearances, while holding it all down.

From Socialist Utopia To Slave-Nation - Venezuela Unveils Shocking "Forced Labor" Law

Posted: 29 Jul 2016 03:55 PM PDT

While we here in the United States debate pressing issues in the wake of the upcoming Presidential election, like the urgent need for gender-neutral bathrooms, the people of Venezuela remain entrenched in a food crisis that continues to sow widespread unrest which has become increasingly violent in recent months (see our post here).  So what do you do if you’re the President of a Socialist government with mounting civil unrest and growing political opposition seeking your ouster via a recall referendum?  Well you enslave your entire nation, of course.  

As Vice News reports, President Nicolás Maduro signed a new law last week that requires "all workers from the public and private sector with enough physical capabilities and technical know-how" to work in agricultural fields on demand.  The new law mandates that citizens can be required to work in the agricultural sector for a period of 60 days which can be extended "if the circumstances require it."  

While we’re “sure” President Maduro’s intentions are good, we’re somewhat skeptical of his plan.  As we recently reported (here), the real issue at hand in Venezuela is, of course, the hyperinflation death spiral gripping the Socialist nation in the wake of the collapse of their oil-dependent economy.  As Miguel Pérez Abad, minister of industry and business, recently told Reuters the decline in domestic production is being exacerbated by plummeting imports which are likely to fall by 60 percent this year, compared to 2015.  As a local baker pointed out, "We cannot make more subsidized bread with the current cost of flour.  We always end up losing, but we cannot afford to stop making bread either."  

Per the FT, local merchants are being forced by an increasingly oppressive military to sell groceries at a loss to avoid civil unrest:

“They went into all the shops in the area, forcing us to sell at a loss,” says Daniel, not his real name, of the incident earlier this month. The army men demanded that Daniel sell his beef at 250 bolívares (roughly $0.25 at black market rates) a kilo, even though he explained it cost 3,000 bolívars to buy from his suppliers.


“They told me the beef belonged to the people and stayed seven hours as a huge queue formed outside.”

Not wanting to be outdone by his U.S. counterparts who masterfully utilize complicit media outlets to control news cycles at their will (see our recent post here), President Maduro has repeatedly taken to the airwaves to blame the food shortages in Venezuela on an "economic war" waged by right-wing businesses, and supported by US imperialism, who seek to bring down his Socialist regime.  Just last month, Maduro declared a 60-day state of emergency based on his fears that the U.S. was plotting a coup attempt.  Per Vice News:

He alleges that business owners are sabotaging the economy in an effort to force him out. Maduro accuses them of wanting to bury the socialist legacy of his popular predecessor, President Hugo Chávez, who created a solid base of support among the poor thanks to oil-subsidized social programs and price-controlled food.  

Meanwhile, Antonio Pestana, chief of Venezuela's farming association, indicated that Venezuela’s food crisis was a simple issue related to the underutilization of available ag land, telling reporters last month that only 25 percent of agricultural land is actually being farmed in Venezuela.  While we don’t doubt Mr. Pestana’s figures, we’re not sure how enslaving a nation of people helps to alleviate Venezuela’s food crisis.  Without the ability to import critically important irrigation equipment and fertilizer supplies, due to a useless currency, we’re not sure what use additional ag labor will be.  We’ve heard that singing to plants can help improve yields, perhaps that is the plan?

Vice News posted the following video detailing the challenges of grocery shopping in Venezuela:


Posted: 29 Jul 2016 03:44 PM PDT

We are seeing the end of all end games when it comes to Agenda 21. In the very distant future once everything is implemented there will be no cars, no buses, no streets. Everything will be done on foot The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,...

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Paul Craig Roberts 2016 Massive Social Instability, Warns Of Economic Collapse

Posted: 29 Jul 2016 03:08 PM PDT

Dr. Paul Craig Roberts Assistant Secretary of the US Treasury Dr. ...

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[WARNING] Gerald Celente : Get Prepped for Global Systemic Collapse (MUST WATCH)

Posted: 29 Jul 2016 02:05 PM PDT

About Gerald Celente : Founder of The Trends Research Institute in 1980, Gerald Celente is a pioneer trend strategist. He is author of the national bestseller Trends 2000: How to Prepare for and Profit from the Changes of the 21st Century and Trend Tracking: The System to Profit from Today's...

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Silver — Once and Future Money

Posted: 29 Jul 2016 01:38 PM PDT

This post Silver — Once and Future Money appeared first on Daily Reckoning.

Before the Renaissance, world money existed as precious metal coins or bullion. Caesars and kings hoarded gold and silver, dispensed it to their troops, fought over it, and stole it from each other. Land has been another form of wealth since antiquity. Still, land is not money because, unlike gold and silver, it cannot easily be exchanged, and has no uniform grade.

In the fourteenth century, Florentine bankers (called that because they worked on a bench or banco in the piazzas of Florence and other city states), accepted deposits of gold and silver in exchange for notes which were a promise to return the gold and silver on demand. The notes were a more convenient form of exchange than physical metal. They could be transported long distances and redeemed for gold and silver at branches of a Florentine family bank in London or Paris.

Bank notes were not unsecured liabilities, rather warehouse receipts on precious metals.

Renaissance bankers realized they could put the precious metals in their custody to other uses, including loans to princes. This left more notes issued than physical metal in custody. Bankers relied on the fact that the notes would not all be redeemed at once, and they could recoup the gold and silver from princes and other parties in time to meet redemptions. Thus was born "fractional reserve banking" in which physical metal held is a fraction of paper promises made.

Despite the advent of banking, notes, and fractional reserves, gold and silver retained their core role as world money. Princes and merchants still held gold and silver coins in purses and stored precious metals in vaults. Bullion and paper promises stood side-by-side. Still, the system was bullion-based.

Silver performed a leading role in this system. This is seen in the success of the Spanish dollar, an eight-real coin, called in Spanish the real de a ocho, or piece-of-eight. The Spanish dollar contained 0.885 ounces of pure silver. It was a 22-karat coin with a total weight of 0.96 ounces (once an alloy was added for durability).

The Spanish Empire minted the real de a ocho to compete as currency with the Joachimsthaler of the Holy Roman Empire. The Joachimsthaler was a silver coin minted in the St. Joachim Valley (thal in German). The word Joachimsthaler was later shortened to taler, cognate with the word "dollar" in English.

Both the Spanish piece-of-eight and the German taler were predecessors of the American silver dollar. Spanish dollars were legal tender in the United States until 1857. As late as 1997, the New York Stock Exchange traded shares in units of one-eighth of a dollar, a legacy of the original silver piece-of-eight.

Similar silver coinage was adopted in Burgundy, the Netherlands (called the leeuwendaalder or "lion dollar"), and Mexico from the seventeenth century. Spanish silver dollars were widely used in world trade. Silver was almost the only commodity accepted by China in exchange for Chinese manufactures until the nineteenth-century. China put its own chop on the Spanish coins to make them a circulating currency in China. If gold was the first world money, silver was the first world currency.

Silver's popularity as a monetary standard was based on supply-and-demand. Gold was always scarce, silver more readily available. Charlemagne invented quantitative easing, or "QE," in the ninth century by substituting silver for gold coinage to increase the money supply in his empire. Spain did the same in the sixteenth century.

Silver has most of gold's attractions. Silver is of uniform grade, malleable, relatively scarce, and pleasing to the eye. After the U.S. made gold possession a crime in 1933, silver coins circulated freely. The U.S. minted 90% solid silver coins until 1964. Debasement started in 1965.

Depending on the particular coin — dimes, quarters, or half-dollars — the silver percentage dropped from 90% to 40%, and eventually to zero by the early 1970s. Since then, U.S. coins in circulation contain copper and nickel.

From antiquity until the mid-twentieth century, citizens of even modest means might have some gold or silver coins. Today there are no circulating gold or silver coins. Such coins as exist are bullion — kept out of sight.


Here's a close-up of a silver ingot. These ingots are stamped (just like paper money) with important information. Here, you can clearly see stamps for the refinery that produced the ingot (Argor Heraeus), the country of origin (Switzerland), and the purity of the silver (999.9). There is also a stamp for the assayer (MH Melter) who tests the purity. The ingots are also stamped with a date (this ingot is 2016), and a unique serial number (not shown).

Is it time to add silver to your portfolio?

At Intelligence Triggers, we use a method called causal inference to make forecasts about events arising in complex systems, such as capital markets. Causal inference methodology is based on Bayes' Theorem, an early 19th century formula first discovered by Thomas Bayes. The formula looks like this in its modern mathematical form:

Bayes Theorem

In plain English, this formula says that by updating our initial understanding through unbiased new information, we improve our understanding. I learned to use this method while working at CIA, and we apply it at Intelligence Triggers today.

The left side of the equation is an initial estimate of the probability of an event happening. New information goes into right hand side of the equation. If it's consistent with our estimate, it goes into the numerator (which increases the odds of our expected outcome). If it's inconsistent, it goes into the denominator (which lowers the odds of our expected outcome).

In this case, we have used the formula to estimate the probabilities of a significant rise in the price of silver in the next six months. We estimate a 60% probability that the price of silver will increase at least 25% in the next six months. That's a strong enough signal to trigger a "buy" recommendation using our proprietary Kissinger Cross methodology.

We update our forecast continually based on new information. What are some of the data points included in our most recent updated forecast?

  • The price of silver has shown great resilience in the face of significant headwinds. Silver has backed off a bit from its recent high of $20.37 per ounce on July 13. But, it's holding around the $19.50 per ounce level, the highest price in two years. This is true despite a bearish commitment of traders report from the COMEX, approaching futures expiration (usually a time for downward price pressure by shorts), reduced Brexit fears, increased COMEX margin requirements, a stronger dollar, and a new round of tough talk from the Fed about rate hikes coming in September.Normally, any one of these factors would be enough to push silver significantly off the recent highs. The fact that silver has been resilient in the face of all six factors at once is a bullish sign
  • In addition to holding up well in the face of bearish factors, silver is set to get a boost from several bullish factors that have not yet been fully priced in by the markets. Despite the recent strong dollar and tough talk from the Fed, the U.S. economy cannot afford a strong dollar. The strong dollar is deflationary and pushes the Fed further away from its inflation targets. The Fed will not raise rates in September (and probably not for the rest of this year). Once that dovish signal gets priced in by the markets, the dollar will weaken and the dollar price of silver will get a boost
  • Regardless of which party wins the U.S. presidential election in November, the U.S. is set for a round of helicopter money (fiscal stimulus monetized by the Fed) in 2017. If Hillary Clinton wins, that probably means a pick-up in Senate votes for Democrats and a bipartisan infrastructure spending bill. If Donald Trump wins, he has already promised massive infrastructure spending, starting with "The Wall."

Either way, we're looking at more spending, bigger deficits, more money printing and, eventually more inflation. The market's anticipation of this outcome, starting in mid-November, will be a powerful tailwind for silver.


Jim Rickards
for The Daily Reckoning

Ed. Note: Sign up for your FREE subscription to The Daily Reckoning, and you'll start receiving regular offers for specific profit opportunities. By taking advantage now, your ensuring that you'll be financially secure later. Best to start right away.

The post Silver — Once and Future Money appeared first on Daily Reckoning.

Gold Daily and Silver Weekly Charts - Monster First Delivery Day For August Gold

Posted: 29 Jul 2016 01:34 PM PDT

Asset Bubbles Tend to Crash with a Vengeance

Posted: 29 Jul 2016 01:33 PM PDT

Despite short-term memory loss affecting most investors, asset bubbles tend to crash with a vengeance. From over-valuation, risk ignorance, and reactionary sentiment, the current bubble-trifecta shows signs of turning over. The monetary powers that be have succeeded in creating serial asset bubbles. Each is extending from the great expansion of credit pivoting on the last official dollar default in 1971. And yet once, again we are bombarded with the mantra: “This time it’s different”.

Institutions will start buying miners, fund adviser Belkin tells KWN

Posted: 29 Jul 2016 12:50 PM PDT

3:45p ET Friday, July 29, 2016

Dear Friend of GATA and Gold:

Fund adviser Michael Belkin tells King World News today that while gold and silver mining shares have already risen dramatically this year, institutional money managers will start buying them soon anyway because "their mandate only allows them to buy stocks with large capitalizations that have moved up." An excerpt from the interview is posted at KWN here:

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


We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth

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New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

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

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

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

Help keep GATA going

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Gold-Stock-Benchmark Battle

Posted: 29 Jul 2016 11:58 AM PDT


Execs flee GLD – The revolving door at the SPDR Gold Trust Sponsor

Posted: 29 Jul 2016 09:58 AM PDT

Bullion Star

The Brexit | Trump Or Hillary as Next USA President | Sheikh Imran Hosein

Posted: 29 Jul 2016 07:00 AM PDT

Sheikh Imran Nazar Hosein is an Islamic scholar, author and philosopher specializing in Islamic eschatology, world politics, economics, and modern socio-economic/political issues. He is the author of Jerusalem in the Qur'an. The Financial Armageddon Economic Collapse Blog tracks trends and...

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False Flag Terrorism & How To Spot It, Kurt Haskell

Posted: 29 Jul 2016 06:00 AM PDT

The incredible eye witness account of the famous underwear bomber who was allowed onto the plane and given a defective bomb courtesy of the US government! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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Gold bargains gone as Sibanye sees few chances for a deal

Posted: 29 Jul 2016 05:20 AM PDT

By Kevin Crowley
Bloomberg News
Friday, July 29, 2016

The gold market shot up so fast that opportunities to make a big acquisition are now scarce, according to Sibanye Gold Ltd.

The South African miner said just two months ago that it wanted to buy a gold-producing asset this year. Now those doors have closed, according to Chief Executive Officer Neal Froneman. He is no longer considering acquiring Acacia Mining or Barrick Gold Corp.'s stake in the company. ...

... For the remainder of the report:


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Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter.

For more information, please visit Bullion Star here:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

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

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

Help keep GATA going

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

To contribute to GATA, please visit:

Ronan Manly: Executives keep fleeing GLD

Posted: 29 Jul 2016 05:16 AM PDT

By Ronan Manly, Singapore
Friday, July 29, 2016

A remarkable but little-noticed development has occurred behind the scenes of the SPDR Gold Trust (GLD) over the last three years. This development concerns the very high level of executive staff turnover at World Gold Trust Services, the New York based "sponsor" of the mammoth GLD gold-backed exchange-traded fund that is listed on the New York Stock Exchange.

For within less than three years, World Gold Trust Services has gone through four chief executive officers and three chief financial officers. By any standard this is a huge amount of senior executives moving through the roles, and would normally ring alarm bells in the corporate governance departments of major institutional investors. Perhaps it has caused concern among institutional investors of the GLD, but if it has, it has gone unreported. ...

... For the remainder of the report:


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Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

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

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

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

Help keep GATA going

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

To contribute to GATA, please visit:

How To Use the XAU-To-Gold and HUI-To-Gold Ratios

Posted: 29 Jul 2016 05:13 AM PDT

The gold miners-to-gold ratios are indicators that show how many gold ounces are required to purchase one share of an index. Technically, the numbers are the value of the index divided by the price of gold. They show a relative value of miners to the price of bullion, thus indicating whether gold stocks or gold are overvalued or undervalued relative to each other. When the ratios are low, miners are cheap compared to gold, and when the numbers are high, gold stocks look expensive relative to bullion.

2016: Current Gold and Commodity Market Themes

Posted: 29 Jul 2016 05:08 AM PDT

A year ago almost to the day we began tracking a ‘Macrocosmic’ theme that would eventually see gold bottom and rise vs. stocks and bonds in 2016, joining its bullish status vs. commodities, which had been in place since 2014.

Learn to Trade Against the Crowd

Posted: 29 Jul 2016 05:04 AM PDT

I’m going to show you how to trade against the crowd using the most recent 18 months of daily charts of $HUI (Gold Miners), $SPX (S&P 500), $WTIC (Crude Oil), XLE (Energy) and $USD (US Dollar).

Top Ten Videos — July 29

Posted: 28 Jul 2016 05:15 PM PDT

Monetary sickness and creditism have replaced capitalism. What’s next after Brexit. Thomas Frank on what’s wrong with the Democrats. Jim Rickards, Egon von Greyerz, and Ronald-Peter Stoeferle on gold.                    

The post Top Ten Videos — July 29 appeared first on

Best Gold & Silver Forecasters Revise 2016 Targets Sharply Higher

Posted: 28 Jul 2016 05:00 PM PDT

Gold and silver prices rose against a falling US Dollar after the Bank of Japan announced smaller-than-expected policy stimulus Friday and more analysts revised their forecasts sharply higher following this year's 26% and...

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