Tuesday, August 9, 2016

Gold World News Flash

Gold World News Flash


Best Countries To Store Gold (How Did America, A Serial Defaulter, Make The Cut?)

Posted: 09 Aug 2016 12:30 AM PDT

Submitted by Peter Diekmeyer via SprottMoney.com,

An era of slowing growth, falling corporate profits, record debt levels, and currency debauchment has many investors buying gold as a bet against global central banks.

Holding that gold outside the banking system, and for some, outside one’s own country, are increasingly popular options. Canada, Switzerland, and four other countries have particularly attractive characteristics.

Those are the conclusions of a new whitepaper produced by Sprott Money Ltd.

Canada and Switzerland are obvious choices. The True North has fabulous natural resources, one of the world’s most stable banking systems and hasn’t been attacked in more than 200 years (the last two times the Americans tried to invade - during the Revolutionary War and the War of 1812 - things did not work out so well for them).

Switzerland, which ranked first on the Tax Justice Network’s Financial Secrecy Index in 2015, has fabulous attractions as an offshore investment locale. These include a long history of offering investors a safe, discreet place to store assets. That applies doubly for gold, which has a better reputation in Switzerland than in almost any other country.

America's shaky credit history

Surprisingly, America, which many in the hard money community regard as a risky gold storage locale, also made the cut, due to its strong international reputation as a safe haven. The paper nevertheless acknowledges some worrying trends. For example, during the Obama presidency America attacked an average of one country a year, debauched its currency and curtailed freedoms.

Worse, when times are tough, the American government has a record of defaulting on its obligations.

This includes creation of currencies issued during the Revolutionary War - and by the Confederacy during the Civil War - both of which became worthless.

America also defaulted on its international obligations when, in 1971, it reneged on its commitments to back the greenback with gold.

But most importantly for gold investors, the American government also seized all private holdings when the going got tough during the Great Depression. The worry is that this could happen again.

A good place – for Americans - to store precious metals

That said, despite its many faults, America is a great place for at least one category of investors to store gold: Americans themselves.

Gold’s and other precious metals’ properties as an emergency reserve to be accessed when times get really tough imply that most investors will want to keep those assets close – where they can get their hands on them fast.

However in today’s volatile economic conditions, no one can be really be sure about how things will turn out during the coming years – let alone the coming decades.

So, for Americans, diversification by asset class and country appears to be the best risk-adjusted wealth preservation strategy. Many experts increasingly believe that holding some precious metals outside the banking system and outside of the country is a good bet.

Conversely, the paper acknowledges that based on the performance of the U.S. dollar during times of tension, international investors continue to regard America, which ranked third on the Tax Justice Network’s Financial Secrecy Index in 2015, as a safe haven.

Singapore, Germany and the Cayman Islands

The Sprott report also identifies Singapore, Germany, and the Cayman Islands as current good offshore storage jurisdictions.

The paper also acknowledges that many other international jurisdictions such as Dubai, Australia, and Hong Kong are regarded as good locales, but acknowledges that changing geopolitical risks requires constant monitoring of domestic and international investment environments.

For Americans, most of whom have never left the country, the Cayman Islands, where English is widely spoken and which offers excellent attributes as a tourist destination, appears to be a particularly attractive storage locale. After all, there is nothing wrong with combining international investing with a trip to the beach.

You can access a copy of the Sprott Money Report by clicking here.

Gold and Silver Bull Market Correction Expected

Posted: 08 Aug 2016 09:45 PM PDT

Technical analyst Jack Chan is awaiting the gold bull correction and sees it as a good entry point for gold.

This is What’s Caused Silver & Gold Buyers to Hold their Fire

Posted: 08 Aug 2016 08:05 PM PDT

from The Wealth Watchman:

Since the rip-roaring good time that we stackers had in July, where silver soared from $17 to over $21, silver's price has been taking a pause. It has(so far) been correcting through time: spending extra time around certain price points, and grinding sideways, to digest it's very sizeable gains from the lows(in the $13's) that we saw back in January.

During this pause however, something else has begun to be very clear: much of the big money has stepped away from the table, for now, and seems to be waiting before purchasing more silver and gold. Today I'll be taking a key look at why that is, specifically in 2 areas, which should help shed some more light on why big-monied investors are putting on the brakes in silver purchases. Before I go into the reasons though, here's the evidence that big money is adopting a "wait and see" approach to precious metals at the moment.

Sales Have Cratered

First let's take a look at gold's recent sales from the world's largest mints.  Below you will see that gold coin sales literally face-planted in the past 3 months.  For instance, take the "Cadillac Coin" of the bullion world, the American Eagle. Sales of AGEs(American Gold Eagles) have declined sharply from this time last year.  Ouch.
Waiting 4

Switch gears to Perth Mint, which has seen sales of roughly 50,000 ounces of gold per month, recently drop from those levels by two-thirds(Two-thirds!) since spring-time.

Cliff dive!

Waiting 2

Remember: the Perth Mint is the major bullion dealer for eager Chinese bullion stackers, who want quality products, reasonably close to their sphere of influence.  When Perth sales go slack, it's fairly likely that Chinese buying has also slowed.

"Well, Watchman, has mainland Chinese buying slowed at all then?"

Fantastic question, I'm glad you asked!

If you'll take a look at the only bullion bourse left that actually matters in the physical realm(Shanghai) we can see that Chinese buying has also taken an enormous tumble in gold, in the last several weeks!

Waiting 5

 

117 tonnes bought in the month of July! While that would be mind-blowing total in any other country….that's a drop of roughly 60% in tonnage that China bought, year over year, in July. That's the second lowest monthly tally of gold buying in the last 30 months.

It's not just gold though.  Take a look at silver for a moment:

Waiting 3

For the first time in roughly a calendar year, silver sales at the Perth Mint didn't remotely reach near 1 million ounces in a month.  In fact, it fell nearly 50% in just one month.

US Mint silver sales have languished the same way.

So, now that we've demonstrated that bullion sales at major mints have languished, let's take a look at why the big money is holding their fire for more purchases.

Price Spike

At the year's beginning, bullion sales were flying high, because gold and silver's price was quite low.  Gold double tapped the $1,050 area(where India first announced they'd bought 200 tonnes).

Silver also had reached $13.50 in early 2016, in the lowest print since 2008, and millions of ounces were being consumed in bullion demand at every major mint each month. Those prices triggered furious buying, which lasted up and until July(despite silver's price climbing higher).

Then something happened which caught even most of the major market players off guard. The Brexit vote came on June 23rd…and with it, twin, mini-parabolas in precious metals began immediately.  The result was so instantaneous, that precious metals began spiking even before the vote confirmed that a Brexit had happened.

Read More @ TheWealthWatchman.com

MELTDOWN: The Global Financial System Is A Ponzi Scheme

Posted: 08 Aug 2016 07:40 PM PDT

Retired Green Beret Blasts "Make No Mistake, Everyone Warning About Clinton Is A Target And They Are Marked"

Posted: 08 Aug 2016 07:25 PM PDT

Submitted by Jeremiah Johnson (nom de plume of a retired Green Beret of the United States Army Special Forces (Airborne)) via SHTFPlan.com,

The Obama Administration has been characterized by not only a lack of transparency on issues that surface, but a deliberate obfuscation to mask true actions and intentions.  There are literally no limits to what the man and his handlers will do outside of the law to attain their ends, while simultaneously “crafting” legislation to enslave the citizenry.  The fawning, lying press trumpets his victories and quietly spins his defeats: objectivity cannot be maintained by journalists on the government payroll and command.

Hence a sitting American president, a man who should have been hauled off of a stage in 2012 and clapped in irons for treason is able to do whatever he wants.  Remember?

“Tell Vladimir I’ll have more leeway after the election.”

Now the Congress and the State Department labeled Iran both a “rogue state that supports terrorism” and “a supporter of Hezbollah and Al-Qaeda.”  So my question is where did Obama secure the necessary Congressional approval to airlift $400 million to Iran on January 17, 2016?  More: Since this was Obama’s move, did he not use his position unilaterally and without any Congressional approval to provide funding to a nation that supports (and conducts direct action missions to complement) terrorist activities?  And this is with Iran, that vows to strike the U.S.?

Just as in the same vein, how can we join Russia in a bombing campaign of “boogeyman” ISIL/ISIS when we, the U.S., created it?

Just as in the same vein, how can we send a QRF (Quick Reaction Force) of our military’s finest commandos to stop the slaughter of an American ambassador and his staff in Libya…when we approved of and enabled it?

The “administration,” if you prefer that ludicrous term to the true state, the “regime,” is made of Teflon…nothing can touch it.  Fast and Furious proved it.  Hillary’s e-mails proved it.  The cashiering of half of the admiralty and general staff of the United States Armed Forces proved it.  The removal of TARS, of the scrambling of fighters, the scrapping of the A-10 Warthog, the cessation of Tomahawk production…all of these measures prove it.  Obamacare steamrolling through the (at the time) Democrat-controlled Congress…enabled by Senator Olympia Snow (R, Maine) proved it.  The hearings and the deciding vote.

Nothing can stop the administration.  Nothing.  And nothing will be able to stop the next one.

Does everyone really think that Trump will be elected?  Really?  Throughout the past two weeks, he has literally run on “self-destruct” and must have a lobotomized campaign manager.  Haven’t we seen this before, when Romney won the first debate and made a fool out of Obama, and then turned into a neutered eunuch for the next debates?

Do not be fooled: it is all intentional.

There is no such thing as an election, only a controlled paradigm shift with a force-fed theatrical playbill that the dumbed-down public gobbles up.  The two “camps” of Democrat and Republican, and the illusion of a colossal battle, a political “Clash of the Titans” between conservatism and socialism drawing the focus and attention of the people away from surrounding events nationally and in the world.

Look at Hanna, the alleged Republican…the first of the jackasses to come out and support Hillary Clinton.  Look at the moneyed interests pooling behind her: Meg Whitman, Warren Buffet, and the invisible but ever-present incubus of George Soros, the man who destroys countries for a hobby and a price.  Look at Hillary, the “good wife,” the “good mother,” the “good 501-C-3” member with a billion dollar “kitty” in the Clinton Foundation and three Delaware shell corporations to hide her loot.  The “good speaker,” snagging $50 – 200 K dollars per speech.

The good fundraiser who raised $90 million dollars in the month of July alone.

By her campaign slogan… “I’m with Her” by those very words are such notables as James Comey, Loretta Lynch, Houma Abedin, Debbie Wassermann-Schultz…all of them…complicit with her in the crimes she has committed.  She would provoke a nuclear war with Russia in order to prevent those e-mails from coming to light.

Her “candidacy” is a degradation and an abasement, not only of the American Justice system, but of the entire Constitution of the United States and the freedom of every citizen.  Those who are “with her” don’t even realize they’ll be the first ones in the gristmill when the time arrives.  That time is almost here.  It’s all been smoke and mirrors, but soon there won’t need to be.  The obfuscations and treacherous maneuvers are masked but in a short time they’ll all be completely unveiled.

The 2nd Amendment will be completely destroyed and/or nullified.  The face of this entire country is going to change, and akin to most bad things, it’ll have to happen before people realize it and take action.

Everybody who criticizes the incoming dictator is marked, make no mistake about it.  We still have a little bit of time, but not much, and effects generated need to have substance, not form.  No juvenile displays of occupying a shed/storage room/visitor center in a National Park or Forest.  No standoffs with a disbandment and then everyone is arrested individually.  The torch is being passed.  Everyone who is criticizing Obama and warning about Clinton is a target and they are marked, along with countless others of the 325 million of us.

If Hillary Clinton takes the presidency, it is the end of the United States.

Jobs report won't stave off stagflation, Turk tells KWN

Posted: 08 Aug 2016 04:03 PM PDT



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7p ET Monday, August 8, 2016

Dear Friend of GATA and Gold:

GoldMoney founder and GATA consultant James Turk tells King World News today that while the latest U.S. jobs report was taken as cause to smash gold, as most such reports are, it really changed nothing about economic conditions and that the country is headed for stagflation. An excerpt from the report it posted at KWN here:

http://kingworldnews.com/james-turk-dont-believe-the-propaganda-here-is-...

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

* * *

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100% Certainty The Economy Will Collapse

Posted: 08 Aug 2016 03:44 PM PDT

This is not anylonger a speculation. The World Economy will collapse. Civil UNREST WILL Occur. It is only a matter of when. a FEW months or slightly more. The world is going down and the NEW WORLD ORDER IS HERE! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts...

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The Quiet Death of the American Dream

Posted: 08 Aug 2016 03:16 PM PDT

This post The Quiet Death of the American Dream appeared first on Daily Reckoning.

American per capita GDP rose an average 2.2% a year between 1947 and 2000. But it's only averaged 0.9% since 2001, says The New York Times.

1.3% doesn't sound like much. And from one year to the next, it isn't. But repeat it every year for 50 years and…

U.S. per capita GDP was about $45,000 at the turn of this century. But as the Times shows, if the economy grew an annual 0.9% between 1947 and 2000 instead of 2.2%, U.S. per capita GDP would have only been about $20,000 — 2.25 times less than it was.

Some countries with per capita GDP 2.25 times less than the U.S.: Greece… Kazakhstan… Latvia… Chile.

Post-2001 America is Greece compared with 1947–2000 America.

Where have you gone, Joe DiMaggio?

Heaping Pelion upon Ossa (Greece again), the McKinsey Global Institute turned up this bitter morsel: Cited in the Times article, it says, "81% of Americans are trapped in an income bracket with flat or declining income over the last decade."

Yet the money supply has roughly tripled since 2001. Explanation, Janet Yellen? How about you, Ben Bernanke?

We're not sure either could tell A from B at the price of their souls. And even the Fed's most dedicated apologists are beginning to cough sadly behind their hands.

So if the Fed can't breathe life into the corpse, what can?

Structural changes. 

"The key is growth. The problem is we can't do it by printing money," explains Jim Rickards. "The current economic slump is not cyclical; it's structural. This is a new depression that will last indefinitely until structural changes are made to the economy."

Structural changes? Overhauling the tax code, gutting useless regulation, reforming entitlements. These sorts of things. Bringing the Keystone pipeline online is another.

Jim says Japan's been in a depression for 25 years because they haven't made the required structural changes to their economy. And he says, "The U.S. is now like Japan."

Jim also says structural changes require action from the White House and Congress. But since they're "not talking to each other," he has little faith they'll happen. And imagine if Trump gets elected! Or Hillary!! Congress might as well go fishing for four years (come to think of it…).

Absent necessary structural changes, the future may be a marathon run of low growth, stagnating incomes… and the Japanification of America.

Here we have a picture not of sudden collapse but of gray sludge and twilight. Of a long, drizzly November. Of a cold that never ends.

“It’s never paid to bet against America," said Warren Buffett. It's not always a smooth ride, adds the Sage of Omaha… but "we come through things.”

Will it come through this?

Regards,

Brian Maher
Managing editor, The Daily Reckoning

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The post The Quiet Death of the American Dream appeared first on Daily Reckoning.

Washington’s Money-Printers Betrayed American Workers

Posted: 08 Aug 2016 03:08 PM PDT

This post Washington's Money-Printers Betrayed American Workers appeared first on Daily Reckoning.

Despite Friday's phony-baloney jobs report, goods-producing jobs have been shrinking again  during the last seven months, even as the next recession knocks on the door.

These manufacturing, construction and energy/mining jobs are the highest paying in the U.S. economy and average about $56,000 per year in cash wages. Yet it appears that the 30-year pattern of lower lows and lower highs with each business cycle is playing out once again.

So even as the broadest measure of the stock market — the Wilshire 5000 — stands at 11X  its 1989 level, there are actually 20% fewer goods-producing jobs in the U.S. than there were way back then.

Why? The short answer is that Alan Greenspan made a giant policy mistake 25 years ago that has left main street households buried in debt and stranded with a simultaneous plague of stagnant real incomes and uncompetitively high nominal wages.

It happened because at the time that Mr. Deng launched China's great mercantilist export machine during the early 1990s, Alan Greenspan was more interested in being the toast of Washington than he was in adhering to his lifelong convictions about the requisites of sound money.

He apparently checked his gold standard monetary principles in the cloak room when he entered the Eccles Building in August 1987. Not only did he never reclaim the check, but, instead, embraced the self-serving institutional anti-deflationism of the central bank.

This drastic betrayal and error resulted in a lethal cocktail of free trade and what amounted to free money.

It resulted in the hollowing-out of the American economy because it prevented American capitalism from adjusting to the tsunami of cheap manufactured goods coming out of China and its east Asian supply chain.

What would have happened in response to the so-called "China price" under a regime of sound money in the U.S.?

Sound money would have led to falling consumer prices, high interest rates and an upsurge of household savings in response to strong rewards for deferring current consumption. From that enhanced flow of honest domestic savings, the supply side of the American economy could have been rebuilt with capital and technology designed to shrink costs and boost productivity.

But instead of consumer price deflation and a savings-based era of supply-side reinvestment, the Greenspan Fed opted for a comprehensive Inflation Regime. That is, sustained inflation of consumer prices and nominal wages, massive inflation of household debt and stupendous inflation of financial assets.

The Fed's Keynesian economists and their Wall Street megaphones have a vested interest in perpetuating inflation. It gives inflation-targeting central bankers the pretext for massive intrusion in the financial markets and Wall Street speculators endless bubble finance windfalls.

The double-talking Greenspan actually bragged about his prowess in generating something he called "disinflation". But that's a weasel word. What he meant, in fact, was that the purchasing power of increasingly higher (and therefore increasingly more uncompetitive) nominal American wages was being reduced slightly less rapidly than it had been in the 1980s.

Still, the consumer price level has more than doubled since 1987, meaning that prices of goods and services have risen at 2.5% per year on average even by the Bureau of Labor Statistics' (BLS) downwardly biased reckoning. Notwithstanding all the Fed's talk about "low-flation" and undershooting its phony 2.00% target, American workers have had to push their nominal wages higher and higher just to keep up with the cost of living.

But in a free trade economy the wage-price inflation treadmill of the Greenspan Fed was catastrophic. It drove a wider and wider wedge between U.S. wage rates and the source of goods and services in the global economy.

That is, U.S. production of manufactured goods was originally off-shored. But with the passage of time and spread of the central bank-driven global credit boom, other goods and services were off-shored to emerging markets (EM).

The high nominal price of U.S. labor enabled India, for example, to capture massive amounts of call center activity, engineering and architectural support services, financial company back office activity and much more.

At the end of the day, it was the Greenspan Fed which hollowed out the American economy. Without the massive and continuous inflation it injected into the U.S. economy represented by the 120% rise in domestic prices since 1987, nominal wages would have been far lower, and on the margin far more competitive with the off-shore.

That's because there is a significant cost per labor hour premium for off-shoring. The 12,000 mile supply pipeline gives rise to heavy transportation charges, logistics control and complexity, increased inventory carry in the supply chain, quality control and reputation protection expenses, lower average productivity per worker, product delivery and interruption risk and much more.

In a sound money economy of falling nominal wages and even more rapidly falling consumer prices, American workers would have had a fighting chance to remain competitive, given this significant off-shoring premium.

But the demand-side Keynesians running policy at the Fed and U.S. Treasury didn't even notice that their wage and price inflation policy functioned to override the off-shoring premium, and to thereby send American production and jobs fleeing abroad.

Indeed, they actually managed to twist this heavy outflow of goods and services production into what they claimed to be an economic welfare gain in the form of higher corporate profits and lower consumer costs.

Needless to say, the basic law of economics — Say's Law of Supply — says societal welfare and wealth arise from production; spending and demand follow output and income. By contrast, our Keynesian central bankers claim prosperity flows from spending. So they had a ready (but phony) solution for the gap in household consumer spending that initially resulted when jobs and incomes were sent off-shore.

The de facto solution of the Greenspan Fed was to supplant the organic spending power of lost production and wages with the appearance of demand issuing from an immense and continuous run-up of household debt. Accordingly, what had been a steady 75-80% ratio of household debt to wage and salary income before 1980 erupted to 220% by the time of Peak Debt in 2007.

The connection between household debt inflation and the explosion of Chinese imports is hard to miss. Today, monthly Chinese imports are 75X larger than they were when Greenspan took office in August 1987.

At the same time, American households have buried themselves in debt, which has rising from $2.7 trillion or about 80% of wage and salary income to $14.3 trillion. Even after the financial crisis and supposed resulting deleveraging, the household leverage ratio is still in the nosebleed section of history at 180% of wage and salary earnings.

Stated differently, had the household leverage ratio not been levitated in nearly parabolic fashion, total household debt at the time of the financial crisis would have been $6 trillion, not $14 trillion.

In effect, the inflationary policies of the Greenspan Fed and its successors created a giant hole in the supply side of the U.S. economy, and then filled it with $8 trillion of debt which remains an albatross on the main street economy to this day.

Then again, digging holes and refilling them is the essence of Keynesian economics.

At the end of the day, the only policy compatible with Greenspan's inflationary monetary regime was reversion to completely managed trade and a shift to historically high tariffs on imported goods and services.

That would have dramatically slowed the off-shoring of production, and actually also would have remained faithful to the Great Thinker's economics. After all, in 1931 Keynes turned into a vocal protectionist and even wrote an ode to the virtues of "homespun goods".

But inflation in one country behind protective trade barriers doesn't work either, as was demonstrated during the inflationary spiral of the late 1960s and 1970s. That's because in a closed economy, easy money does lead to a spiral of rising domestic wages and prices owing to too much credit based spending. And this spiral eventually soars out of control in the absence of the discipline imposed by lower-priced foreign goods and services.

In perverse fashion, therefore, the Greenspan Fed operated a bread and circuses economy. Unlimited imports massively displaced domestic production and incomes — even as they imposed an upper boundary on consumer prices.

The offshoring of production and other services, in effect, throttled domestic inflation and prevented a runaway inflationary spiral. The ever increasing debt-funded U.S. household demand for goods and services, therefore, was channeled into import purchases which drew upon virtually unlimited labor and production supply available from the rice paddies and agricultural villages of the EM.

In a word, the Fed's monetary inflation was exported.

Free trade also permitted many companies to fatten their profits by exploiting the wedge between Greenspan's inflated wages in the U.S. and the rice paddy wages of the EM. Indeed, the alliance of the Business Roundtable, the Keynesian Fed and Wall Street speculators on behalf of free money and free trade is one of history's most destructive arrangements of convenience.

Consider: During the 29 years since Greenspan took office, the nominal wages of domestic production workers have soared, rising from $9.22 per hour in August 1987 to $21.26 per hour at present. It was this 2.3X leap in nominal wages, of course, that sent jobs packing for China, India and the EM.

At the same time, the inflation-adjusted wages of domestic workers who did retain their jobs went nowhere at all. That's right. There were tens of millions of jobs off-shored, but in constant dollars of purchasing power, the average production worker wage of $383 per week in mid-1987 has ended up at $380 per week 29 years later.

During the span of that 29 year period the Fed's balance sheet grew from $200 billion to $4.5 trillion. That's a 23X gain during less than an average working lifetime. Greenspan claimed he was the nation's savior for getting the consumer price index (CPI) inflation rate down to around 2% during his tenure. And Bernanke and Yellen have postured as would be saviors owing to their strenuous money pumping efforts to keep it from failing the target from below.

But 2% inflation is a fundamental Keynesian fallacy, and the massive central bank balance sheet explosion which fueled it is the greatest monetary travesty in history. Dunderheads like Bernanke and Yellen say 2% inflation is just fine because under their benign monetary management everything comes out in the wash at the end — wages, prices, rents, profits, living costs and indexed social benefits all march higher together with tolerable leads and lags.

No they don't.

Jobs in their millions march away to the off-shore world when nominal wages double and the purchasing power of the dollar is cut in half over 29 years. These academic fools apparently believe they live in Keynes' imaginary homespun economy of 1931!

The evident economic distress in the flyover zone of America and the Trump voters now arising from it in their tens of millions are telling establishment policy makers that they are full of it:

That they have had enough of the toxic combination of free trade and free money.

Regards,

David Stockman
for The Daily Reckoning

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The post Washington's Money-Printers Betrayed American Workers appeared first on Daily Reckoning.

Possible Second Assassination Attempt on Trump? - James Fetzer

Posted: 08 Aug 2016 02:37 PM PDT

Clip from August 04, 2016 - guest James Fetzer on the Jeff Rense Program 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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HILLARY’S HEALTH DECLINE: HOW CAN SHE be PRESIDENT if SHE CAN BARELY CLIMB A FEW STAIRS?

Posted: 08 Aug 2016 02:21 PM PDT

If she is elected just install elevators for whever she goes, like for the 20th floor in a 10 story building. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers ,...

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Gold Suffers Weakness on Strong U.S. Jobs Numbers, but UK Stimulus to Offer Respite

Posted: 08 Aug 2016 02:11 PM PDT

Gold investors might need to brace up for a potentially disappointing week after strong U.S. employment numbers reduced the allure of the yellow metal. Gold has been on an impressive bullish ride this year and the yellow metal has gained 26% in the year-to-date period to erase the 11% loss that was recorded in full year 2015. In fact, gold has delivered an impressive price gains that outperforms equities and other commodities.

Top Silver Mining CEO Makes a Remarkable Price Forecast

Posted: 08 Aug 2016 01:56 PM PDT

First Majestic's Keith Neumeyer: “Silver Mines & Silver Are Way Rarer Than People Actually Think” Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear a fantastic interview with Keith Neumeyer, CEO of First Majestic Silver Corp. Keith gives an insider’s take on the tremendous and unsustainable imbalance that exists between the available mine supply of silver compared to gold and what it likely means for the silver to gold ratio. And you’ll definitely want to hear Keith’s long term price target for the white metal, which may surprise you. Don’t miss my conversation with Keith Neumeyer coming up after this week’s market update.

Obama Promises To Leave US In January - Permanently

Posted: 08 Aug 2016 01:42 PM PDT

Obama ain't going anywhere unless its to be secretary general if the UN. He will declare martial law, become king under the new FEMA government and start exterminating dissidents. Then he will become secretary general and appoint Hillary our queen. The Financial Armageddon Economic Collapse...

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Gold Daily and Silver Weekly Charts - Marking Time In a Dollar World

Posted: 08 Aug 2016 01:15 PM PDT

Gold Reserve shares surge on $770 million Venezuelan settlement

Posted: 08 Aug 2016 10:54 AM PDT

Gold Reserve Shares Surge on $770 Million Venezuelan Settlement

By Andrew Willis
Bloomberg News
Monday, August 8, 2016

Gold Reserve Inc. will get about $770 million as part of a settlement with Venezuela for the 2008 seizure of its Brisas gold and copper project in an arrangement that depends on the country securing financing. Shares surged.

Payment is expected to be made in two installments: $600 million by the end of October and the rest by year-end, the Spokane, Washington-based company said in a statement Monday.

Venezuela also agreed to buy the company's mining data for $240 million and enter into a jointly owned company with Gold Reserve for a 18,000-hectare claim including the Brisas Cristinas deposit.

The statement didn't say where Venezuela, whose oil-dependent economy has been pummeled by slumping energy prices, would obtain the funding. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-08-08/gold-reserve-shares-su...



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

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Billionaire Investor’s Dire Warning: Sell Everything!

Posted: 08 Aug 2016 09:12 AM PDT

This post Billionaire Investor's Dire Warning: Sell Everything! appeared first on Daily Reckoning.

With the S&P 500 hitting record highs, one of the world's most renowned investors has hit the panic button with a sledgehammer…

Jeffrey Gundlach, also known as the "Bond King," is one of the most accomplished fund managers on the planet.

Just six years after launching his own firm, DoubleLine Capital, he's at the top of the bond world, with more than $100 billion under management.

When Gundlach speaks, the press genuflects.

And not surprisingly, many of Wall Street's brightest lemmings are freaked out by his recent market warnings…

Running for Cover

In a recent Reuters interview, Gundlach told investors to head for the hills.

Here's his apocalyptic advice:

Sell everything! Nothing here looks good… The stock markets should be down massively but investors seem to have been hypnotized that nothing can go wrong.

Why is Gundlach headed to the bomb shelters?

Economic growth is in the toilet… corporate earnings are accounting games… corporate debt is soaring… and the Fed is out of control in an effort to make everyone a winner.

Did I miss anything?

Here's the deal: By keeping interest rates at zero for more than seven years, the Fed created no-cost loans for CEOs. But instead of using interest-free money for building and expanding, CEOs used it to buy back stock…

This artificially inflated stock prices. And, of course, it made investors and executives happy with ever-increasing dividends and executive bonuses.

That's what is propping up our all-time high stock market, not real growth.

But Gundlach sees the rigged game implosion coming soon. And he's not the only legendary investor hitting the big red panic button…

The man who held the title of "Bond King" before Gundlach, Janus Capital's Bill Gross, is right there too…

In recent comments, Gross was stone-faced: "I don't like bonds; I don't like most stocks; I don't like private equity."

So with doom and gloom permeating, is there one investment these investing icons actually like?

"I am not selling [my] gold," Gundlach told Reuters. He holds gold, and gold miner stocks.

Gross agrees. He points to safe havens like gold and land as the sane options in an insane world.

Don't Be Late to the Party

So are Gundlach and Gross right? Is a massive correction that will send us all back to the Stone Age imminent?

They can't know. They're skilled investors, not crystal ball readers.

Sure, a 50% S&P meltdown will happen. A crash is inevitable. But trying to predict when that will happen is a fool's errand.

With the "prediction" approach, you'll get lucky and take big gains occasionally. Other times you'll be nailed in the kisser with crushing losses. This ridiculous seesaw is a surefire way to cat-food dining.

But that's not my main lesson here…

You see, many investors follow Gundlach and Gross via news headlines… and then invest accordingly. But if you rely on "a day late and a dollar short" media reporting to track heavy hitters, you're late to the party every time.

And that's been especially true with gold…

Precious metals have been on a massive tear to the upside this year, long before any of the "Bond King" warnings. The market seems to always know the right way.

And that has created a rising price trend in gold that my proprietary system picked up back in March.

My trend following system got two more precious metals buy signals in April. And my Trend Following subscribers are up 50%, 32% and 70% on these three recommendations to date.

If you weren't following gold's price trend, you missed out big time.

Could gold continue higher from here? Of course. It can also head lower.

But waiting for the next media story on which direction Gundlach and Gross think it's headed is certifiably crazy. That's no system.

The only reliable indicator for gold's direction is its price trend. That's how you can make the big money, by following the trend.

And like all profitable market trends, they form long before any of the media hyperventilation.

So when you find yourself feeling manipulated by the press, remember: "People are sheep. TV is the shepherd."

Please send me your comments to coveluncensored@agorafinancial.com. I want to know what you're thinking.

Regards,

Michael Covel
for The Daily Reckoning

The post Billionaire Investor's Dire Warning: Sell Everything! appeared first on Daily Reckoning.

GERALD CELENTE GLOBAL MELTDOWN It's In The Numbers NEW JUNE 2016

Posted: 08 Aug 2016 09:11 AM 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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Somehow the case for gold makes it into the Financial Times

Posted: 08 Aug 2016 06:24 AM PDT

9:25a ET Monday, August 8, 2016

Dear Friend of GATA and Gold:

There's nothing terribly profound or incisive about the commentary in today's Financial Times that is appended here. But simply that the FT published something making the obvious case for gold is nearly astounding. What's next -- the capture of the Loch Ness monster, UFOs landing at Stonehenge, or an FT reporter committing actual journalism by putting an inconvenient question to a central banker about surreptitious intervention in the gold market?

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

* * *

The Victory for Gold Bulls Is Only Just Beginning

By Diego Parrilla
Financial Times, London
Monday, August 8, 2016

http://www.ft.com/cms/s/0/79a88890-5b09-11e6-8d05-4eaa66292c32.html

Gold prices have rallied more than 30 per cent since the lift-off in US interest rates in December. A sharp reversal in pricing, sentiment and positioning driven by a myriad macro and micro factors has left the gold bears and bulls as polarised as ever.

... Dispatch continues below ...



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The bearish camp, which has featured prominent and respected analysts like Goldman Sachs, tends to have a constructive view on the US dollar, the ability to raise interest rates, normalise global monetary policy, and generally a benign view on the global economy and inflationary risks.

The bullish camp, which I subscribe to, tends to have a more pessimistic view on the global economy and the unintended consequences of monetary policy without limits, and sees the recent price action as the beginning of a multiyear bull run in gold.

My view that there is a perfect storm for gold is based on three closely interrelated dynamics, whereby central banks and global markets are both testing the limits of monetary policy and credit markets as well as the boundaries of fiat currencies.

Firstly, the limits of monetary policy: In response to the Lehman crisis and in order to combat the threat of deflation, central banks have deployed a wide range of unconventional monetary policies. Quantitative easing and negative interest rates have been game changers and have dramatically distorted the valuation of government bonds, breaking the theoretical ceiling in prices, squeezing shorts and underweight positions, and feeding what, in my view, is one of the largest financial bubbles in history.

The epicentre of the problem is the central banks, but investors and savers around the world, faced with extraordinarily low and even negative yields in their cash and fixed income, have been incentivised -- if not forced -- to increase the duration in their portfolios, increasing the risk of capital losses, liquidity and volatility beyond what they may be intending or able to tolerate.

Then there's examining the edges of credit markets. The bubble in government bonds and duration has incentivised risk-taking across equity and credit markets, lending to weaker and weaker credits, often ignoring or underplaying the risk of capital losses, liquidity and volatility. It's a bull market that feeds on itself and benefits the weakest players most, such as emerging markets or high yield.

In a world with limited investment opportunities, excessive risk-taking can lead to speculation and, of course, bubbles.

The current path of monetary and credit expansion is unsustainable and will eventually burst, leaving investors struggling for "the return of their capital, instead of return on their capital," an extremely bullish scenario for gold and other real assets.

Thirdly, the limits of fiat currencies are being tested. Unlike the global financial crisis of 2008, this time there won't be any monetary bullets left. Interest rates are already at record lows, asset purchases suffer from the law of diminishing returns, and competitive currency devaluations only increase underlying problems and global imbalances. A dangerous slippery slope that paper cures miss is that they "eventually converge to their intrinsic value: paper", as Voltaire warned.

Over the past few years we have witnessed the first stage of Gresham's law whereby "bad money displaces good money", and are now at the early stages of the second and final phase, whereby "good money displaces bad money".

Gold and the US dollar are best placed to play the role of good money, which could result in a substantial appreciation against the bad money currencies. But inability or unwillingness of the US to normalise its monetary policy leaves the door wide open for gold to retake its reserve currency status and put an end to the monetary supercycle that started in 1971 with the end of Bretton Woods. It's a period that has seen the outstanding volume of paper money grow disproportionately relative to the amount of gold that once upon a time backed it.

Time will tell if central banks and governments will be able to engineer a smooth solution to the challenges ahead, or if the remedy will be worse than the disease.

Monetary policy without limits will lead to a very wild and bumpy ride and a larger crisis than the one we have been trying to resolve: a perfect storm for gold.

-----

Diego Parrilla is co-author of "The Energy World is Flat" and a precious metals specialist.

* * *

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 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:

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

Today is a Stock Market Pi Date

Posted: 08 Aug 2016 05:44 AM PDT

Good Morning! The SPX Premarket is marginally higher, along with the global equities markets. ZeroHedge reports, “The meltup continues with the S&P500 set to open at new all time highs as futures rise 0.2% overnight, with European, Asian stocks higher, as job data pushed MSCI Asia Pacific Index towards highest close since Aug. 2015. Germany, U.K. economic data seen positive, with dollar, oil rising, and gold declining.”

Gold to Thrive in a Fiat Ponzi with Negative Yield

Posted: 08 Aug 2016 05:38 AM PDT

Summary: So if you are buying government bonds, expecting a decent return at the current puny level of yields, you are chasing the price. You are a speculator focusing on price, not yield.   …If you are buying equities at current sky-high prices, you are chasing the yield. The mirror image of bonds. Gold bottomed in December 2015, after a much-anticipated Federal Reserve interest rate hike – the first in 7 years. Perhaps the market sensed that the Fed has done away with its interest hike campaign?

Lew Rockwell The Roots of Tyranny

Posted: 08 Aug 2016 04:38 AM PDT

Llewellyn Harrison "Lew" Rockwell, Jr. is an American libertarian author and editor, self-professed anarcho-capitalist, a promoter of the Austrian School of economics, and founder and chairman of the Ludwig von Mises Institute. Wikipedia The Financial Armageddon Economic Collapse Blog...

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Breaking News And Best Of The Web

Posted: 07 Aug 2016 06:44 PM PDT

Good US jobs report — on the surface. Gold plunges, stocks jump. Oil hovers around $40. Bank of England cuts rates, UK bond yields plunge. European banks have investors running scared. Japan begins new round of stimulus. The Trump campaign may be collapsing. Swiss central bank keeps buying stocks.   Best Of The Web Updating […]

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

Gold and Silver Bull Market Correction Expected

Posted: 06 Aug 2016 01:00 AM PDT

Technical analyst Jack Chan is awaiting the gold bull correction and sees it as a good entry point for gold.

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