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• GEAB N°57 ist angekommen! Umfassende weltweite Krise: Viertes Quartal 2011: Kernschmelze der globalen Finanzwerte
• Awaiting the Inevitable Correction in the Silver Price
• Did Donald Trump Just Mark A Near-Term Top In Gold?
• Updated silver lawsuit IDs Morgan trading mechanisms, traders, spoof trades
• Is Citigroup Undervalued?
• 2 Stocks For Rising Silver Prices
• China sets national gold standard
• Austria Restricts GOLD Purchase By Individuals
• Will Gold and Silver Move Lower Together?
• Got Gold? Austria Limits Purchases to $15000 Euros
• What a Major Banking Crisis Would Do To the GOLD Price
• LISTEN – Mayor Bloomberg Warns of Riots
• How Can They Notice Swiss Franc's Devaluation and Not Gold's Too?
• Barclays to Open London Precious Metals Vault
• World's central banks flood market with dollars
• Rare Coins | Understanding Coin Grading
• LISTEN – Silver Stocks – Fraud or Manipulation?
• Gold and Silver rebound as expected/huge news on the silver fraud case against JPMorgan
• TheDailyGoldPodcast with Jeb Handwerger 9/15
• By the Numbers, Week Ending September 16
• What daily gold/silver blogs/commentaries/etc. do you follow?
• How Many Fingers is the Government Holding Up?
• Why it could be "risk off" all over again next week
• They have learned nothing: The Federal Reserveis using our money to bail out European banks AGAIN
• New York City mayor Bloomberg warns of riots
• The Drama Continues For Yahoo
• GEAB N°57 is available! Global systemic crisis - Fourth quarter 2011: Implosive fusion of global financial assets
• Gold Seeker Weekly Wrap-Up: Gold and Silver Fall a Little Over 2% on the Week
• JP Morgan SILVER Manipulators Exposed
• GLD: Buy That Dip

GEAB N°57 ist angekommen! Umfassende weltweite Krise: Viertes Quartal 2011: Kernschmelze der globalen Finanzwerte Posted: 17 Sep 2011 04:04 AM PDT - Pressemitteilung des GEAB vom 16. September 2011 - Wie von LEAP/E2020 seit November 2010 angekündigt und mehrfach, zuletzt im Juni 2011, bestätigt, flammte die Krise zu Beginn des zweiten Halbjahrs wieder auf. Mehr als 10.000 Milliarden US-Dollar der nach 2008 verbleibenden 15.000 Milliarden an fiktiven Vermögenswerten wurden bereits „vom Winde verweht". Was noch blieb, wird aller Voraussicht nach im vierten Quartal 2011 folgen. Denn dann tritt das ein, was wir die „Kernschmelze der globalen Finanzwerte" nennen. Diese Kernschmelze wird sich vor allen Dingen an der Wall Street und in der Londoner City ereignen. Wie wir schon seit Monaten vorhersehen, wird, wenn die Euroländer in der Staatsschuldenkrise die privaten Investoren in die Verantwortung nehmen und einen Abschlag von bis zu 50% an den von ihnen gehaltenen Staatsanleihen durchsetzen, die kritische Masse erreicht sein. Dann wird der Prozess außer Kontrolle geraten. Aber auch wenn die Zündung in Europa erfolgt, die große Masse des Brennstoffs, der die Reaktion speisen und die Finanzwelt in Flammen aufgehen lassen wird, befindet sich in den USA (1). Die Ereignisse des Juli 2001 waren lediglich der Beginn. Das Schlimmste steht noch aus - und es steht kurz bevor. In diesem Teil der 57. Ausgabe des GEABs, der als Presseveröffentlichung allgemein zugänglich sein wird, wollen wir darstellen, wie die Meinungsmache (2) gegen den Euro unter Ausnutzung der Griechenlandkrise organisiert wurde, und dabei auch beschreiben, welche Verbindung zwischen dieser Manipulation der öffentlichen Meinung und der bevorstehenden Kernschmelze der globalen Finanzwerte besteht. Weiterhin präsentieren wir unsere Vorhersagen zur weiteren Entwicklung des Goldpreises für die Jahre 2012 bis 2014 sowie unsere Analysen über die Renaissance des Protektionismus im Welthandel, die Ende 2012 einsetzen wird. Neben den üblichen monatlichen Empfehlungen, die dieses Mal Devisen, die Schweiz und den Schweizer Franken sowie den Immobilienmarkt betreffen, stellen wir unsere Empfehlungen an die Regierungen der G20 vor, die sich in weniger als zwei Monaten zu einem Gipfel in der Stadt treffen, die auch Sitz von LEAP/E2020 ist, nämlich Cannes. Griechenland und der Euro: Bestandsaufnahme einer massiven Meinungsmache Kommen wir also zu Griechenland zurück und der panikschürenden Medienkampagne, die alle paar Monate erneut aufflammt (3). Wir haben ja schon dargelegt, dass Griechenland und seine Schulden immer rein zufällig in das Fadenkreuz der großen Medien geraten, wenn die Probleme Washingtons und Londons überwältigend zu werden drohen (4). Der Sommer war eine Abfolge von Katastrophen für die USA (Rezession (5), Herabstufung der Bonitätsnote (6), Lähmung und Ohnmacht des politischen Systems (7), Unfähigkeit zur Verabschiedung eines realistischen Sparprogramms (8)). Großbritannien rutscht in eine Depression (9), in den Straßen seiner Städte brechen Aufstände aus, die an Gewalttätigkeit kaum zu übertreffen sind, sein Sparprogramm stürzt das Land in eine soziale Krise bisher nicht bekannten Ausmaßes (10) und kann ein weiteres Anwachsen der öffentlichen Defizite dennoch nicht verhindern (11), die Regierungskoalition weiß eigentlich gar nicht mehr, wieso sie noch zusammenbleiben soll und wie sie noch gemeinsam regieren kann, und als Sahnehäubchen auf dieser schreckliche Entwicklung wird die Kollusion zwischen dem Medienimperium Murdoch und führenden Politikern bekannt. In so einer verzweifelten Situation für USA und Großbritannien konnte ein Aufflammen der Berichterstattung über die schreckliche Lage in Griechenland und das bevorstehende Ende des Euros nicht ausbleiben. Sollten wir ein Resume der Kampgange im Stil Hollywoods oder FoxNews (12) erstellen, würde sich das so lesen: « Während die Titanic auf den Eisberg zurast, lässt die Mannschaft die Passagiere Jagd auf gefährliche griechische Terroristen machen, die Bomben an Bord versteckt hätten." Aus der Propaganda ist diese Taktik wohlbekannt: Man lenkt von dem eigentlichen Problem ab, um zuerst eine ausgewählte Handvoll von Passagieren zu retten, nämlich die reichen und gut informierten (die sehr wohl wissen, dass keine Terroristen an Bord sind), weil Rettungsboote nur für wenige vorhanden sind. Natürlich muss von dem wahren Problem abgelenkt werden, sonst gäbe es ja eine Revolte an Bord (13). Seit nunmehr zwei Jahren kochen interessierte Kreise immer wieder das Süppchen von der griechischen Krise und dem dadurch verursachten Ende des Euros hoch, ohne dass viel passieren oder die geringsten ihrer Vorhersagen eintreten würden (14). Und dennoch wollen die Tatsachen einfach nicht der Fiktion weichen. Trotz der gigantischen Medienkampagne, die vielen anderen Volkswirtschaften und Währungen längst den Gar ausgemacht hätte, bleibt der Euro weitgehend stabil (15), Euroland bewegt sich in Riesenschritten auf eine verstärke politische Integration zu (16) und wird vielleicht bald die entscheidenden Etappen zurücklegen (17), die Schwellenländer stoßen ihre US-Staatsanleihen ab und kaufen stattdessen Staatsanleihen von Mitgliedern der Eurozone. Indessen rückt der Austritt Griechenlands lediglich in den Artikeln angelsächsischer Medien in den Bereich des Möglichen. Aber deren Autoren haben keine Ahnung, wie die EU funktioniert und noch weniger, welche machtvollen Trends in ihr wirksam sind (18). Wer unbedingt Geld verlieren möchte, indem er auf ein Auseinanderbrechen des Euro, eine Parität von Euro und Dollar (19) oder ein Ausscheiden Griechenlands aus der Eurozone wettet, dem können wir nicht helfen (20). Wahrscheinlich haben die selben auch schon viel Geld ausgegeben, um sich vor der Schweinegrippepandemie zu schützen, mit der Experten, Politiker und Medien über Monate die Bevölkerung in Angst und Schrecken versetzen wollten und die sich letztendlich nur als riesige Manipulation herausgestellt hat, an der auch die Pharmahersteller beteiligt waren, die die von ihnen bezahlten „unabhängigen" Experten gewinnbringend einzusetzen verstanden hatten (21). Wenn eine Kampagne erst einmal zu greifen beginnt, wird sie durch den Sensationshunger und Herdentrieb ignoranter Journalisten (22) zum Selbstläufer. Genau wie bei der Schweinegrippe funktionieren die Mechanismen des modernen Medienbetriebs auch hier, nur dass in der Kampagne gegen den Euro Wall Street und die Londoner City die Rolle spielen, die die Pharmakonzerne in der Schweinegrippefarce ausfüllten (23). Wall Street und die Londoner City in Panik über die sich abzeichnende Entwicklung Eurolands Was an der Wall Street und der Londoner City Panik auslöst, sind die Lehren, die die Regierungen und die Menschen in Euroland aus drei Jahren Krise und den untauglichen Versuchen zu ihrer Bekämpfung ziehen. Euroland in seiner Struktur und seiner Diversität bietet ein Diskussionsforum, für das es bei den amerikanischen und britischen Eliten und in der angelsächsischen Öffentlichkeit keine Entsprechung gibt. Denn aus diesem Forum erwachsen Innovation und Kreativität. Und genau das stört Wall Street und City, die daher versuchen, den Mehrwert des Diskussionsforums zu sabotieren, indem sie es mit Panikkampagnen beschäftigen möchten, z.B. über das bevorstehende Ende des Euro, oder indem sie es als Zeitverschwendung verhöhnen, an dem man sehen könne, dass Euroland ineffizient und unfähig zur Krisenbekämpfung sei. Angesichts der absoluten Lähmung des politischen Systems in Washington ist dies eine erstaunliche Chuzpe. Dabei ist es doch gerade die Existenz dieses Diskussionsforum, das den Euroländern ermöglicht, eine dauerhafte Lösung der Krise zu erarbeiten. Es ist ein Wesenselement der europäischen Integration, wo unterschiedliche Lösungsansätze sich konfrontieren, bis am Ende ein Kompromiss gefunden wird. Und Kompromisse kommen immer zu Stande, wie man an den sehr schwierigen und wichtigen Entscheidungen sieht, die seit Mai 2010 getroffen wurden. In diesem Diskussionsforum agieren eine Vielzahl von Teilnehmern, die aus 17 verschiedenen Ländern mit 17 öffentlichen Meinungen kommen sowie aus mehreren Gemeinschaftsinstitutionen (24). Und Ideen entstehen aus der Konfrontation der Meinungen. Der griechische Philosoph Heraklit sagte schon vor 2500 Jahren, dass in der brutalen Konfrontation der Ideen « einige zu Göttern wurden, andere zu Menschen; einige zu Sklaven, andere zu freien Männern ». Die Menschen Eurolands werden nicht zulassen, dass diese Krise sie zu Sklaven macht; daher sind die inner-europäischen Debatten notwendig und nützlich. In nur drei Jahren, von 2008 bis 2011, haben sie insbesondere drei wichtige Grundsteine für die Zukunft gelegt: - der Prozess der europäischen Integration wurde dank Euroland wiederbelebt. Euroland ist heute auf dem Weg zu einer politischen Union. Wir gehen davon aus, dass sich diese Vision ab 2012 konkretisieren wird, und dass bis 2015 ein Referendum durchgeführt werden wird, mit dem über die Bildung einer politischen Union in Euroland entschieden werden soll (25). - Zwei einfache Ideen sind dabei, sich bei den Eliten und den öffentlichen Meinungen in Euroland durchzusetzen: 1. Die Rettung von privaten Banken trägt nichts zur Überwindung der Krise bei. 2. Es ist unabdingbar, dass die « Märkte », was nichts weiter ist als eine Umschreibung der großen Finanzinstitute von Wall Street und der City, für ihre Risiken einstehen und nicht weiter darauf vertrauen können, von den Regierungen gerettet zu werden. Jeden Tag überzeugen diese einfachen Überlegungen mehr Menschen, gewinnen mehr Unterstützung. Natürlich löst dies bei den Banken und Investoren an Wall Street und in der City Panik aus. Diese Ideen haben die Zündschnur in Brand gesteckt, die im vierten Quartal die Kernschmelze der globalen Finanzwerte auslösen wird. Deren Ursache liegt natürlich nicht in der Debatte in Euroland. Ursache sind die US-Rezession und die amerikanischen Defizite. Aber sie ist die Auslöser. Die „Märkte" beginnen, einen Abschlag auf griechische und spanische Anleihen von 50% einzupreisen, weil sie spüren, wohin die Ereignisse in Euroland führen werden. Wir sind fest davon überzeugt, dass in Euroland sich gerade die Überzeugung Bahn bricht, die privaten Gläubiger der Staaten mit mindestens 50% an der Lösung der Schuldenkrise zu beteiligen. Natürlich stellt dies die europäischen Banken vor bedeutende Probleme. Die Sparer aber werden sich keine Sorgen machen müssen. Hingegen werden die Aktionäre Verluste zu tragen haben. Dies ist ja das Wesen des Kapitalismus. Risiko ist keine Einbahnstraße zu Profit. Wall Street, die City und ihre Relaisstellen in den Medien sträuben sich natürlich verzweifelt dagegen, dass diese Ideen von einer Verantwortung des Kapitals sich durchsetzen und setzen viel daran, die Diskussion zu ersticken. Sie schüren Panik wegen des bevorstehenden Ende des Euros, indem sie Experten vorschicken, die den Bürgerinnen und Bürgern wieder und wieder versichern, dass die einzige Möglichkeit zur Rettung der Wirtschaft und damit auch ihrer Arbeitsplätze sei, die Banken mit neuem Kapital auszustatten, sie mit Liquidität zu überschwemmen (26)..., wie es schließlich auch London und Washington machen. Aber das sind ja auch die beiden Ländern, in denen die Banken die Regierungen am Gängelband führen. Übrigens ist die Kampf um die EZB, von der wir schon in einer vorhergehenden Ausgabe schrieben, noch bei weitem nicht entschieden. Die Ernennung von Mario Draghi an ihre Spitze sowie der Rücktritt von Jürgen Stark sind Schlachten in dem Versuch von Wall Street und der City, die EZB unter die Kontrolle von London und Washington zu bekommen. Aber er ist von vorne herein zum Scheitern verurteilt, weil die EZB fest verankert ist in der europäischen Konstruktion mit ihren offenen Debatten, in denen nun die Lehren aus den Fehlschlägen von 2008 gezogen werden. « Qui va piano va sano e qui va sano va lontano » (27) lautet ein italienisches Sprichwort. Die Krise ist, wie wir seit Februar 2006 nicht müde werden zu betonen, von historischem Ausmaß. Die für ihre Überwindung notwendigen Maßnahmen, die uns als freie Männer weiterleben lassen und nicht zu Sklaven machen, um wieder Heraklit zu zitieren, erfordern reife Überlegung und ernsthafte Debatten. Und dies geht nicht ohne entsprechenden Zeitaufwand. Und solange die Europäer überlegen, können die „Märkte" nicht ihre gewohnten Profite machen – woraus sich ihre Sorgen erklären. Natürlich kann man es nicht bei Überlegen und Debattieren belassen, sondern es muss auch gehandelt werden. Aber wir schreiben ja schon seit Mai 2010, dass die Entscheidungen Eurolands Quantensprüngen in der Entwicklung der europäischen Union waren, die einzigartig sind. Wir vertreten die Auffassung, dass dem zweiten Rettungsplan für Griechenland ausreichend Zeit eingeräumt werden sollte, umgesetzt zu werden und Erfolge zu zeitigen. Ansonsten wissen wir alle, dass die meisten der gegenwärtigen Regierungen nur noch über eine begrenzte Restlaufzeit verfügen. Für weitere Fortschritte in der europäischen Integration Eurolands müssen wir uns wohl bis Jahresmitte 2012 gedulden (28). Solange werden sich die amerikanischen und europäischen Banken, die allein 2012 einen Finanzbedarf von 340 Milliarden US-Dollar haben (29), weiterhin zerfleischen und gleichzeitig versuchen sicherzustellen, von der uneingeschränkten Unterstützung der Zentralbanken zu profitieren. Was die EZB anbelangt dürfte ihnen eine sehr unangenehme Überraschung ins Haus stehen. Das vierte Quartal 2011 bringt das Ende zweier Schlüsselparadigmen der Welt von Gestern Die Kernschmelze des vierten Quartals wird die unmittelbare Folge des Aufeinandertreffens von zwei neuen Realitäten sein, die im harschen Gegensatz zu den grundlegenden Bedingungen der Welt vor der Krise stehen: - Die eine ist in Europa entstanden. Von nun an müssen die großen privaten Banken, deren bedeutendsten die an der Wall Street und in der Londoner City sind, auch die Risiken tragen müssen, die sie eingehen, um maximale Profite zu erzielen. Das ist ein enormer Paradigmenwechsel. Bisher, und dies schon seit Jahrzehnten, lebten die Banker und arbeiteten die Banken nach der Devise „Kopf, ich gewinne, Zahl, der Steuerzahler verliert." Kein Wunder, dass die Finanzindustrie in den letzten Jahrzehnten immens schneller wuchs als die Realwirtschaft. Inzwischen bauen die Geschäftsmodelle der großen Banken und Versicherungen der westlichen Staaten auf dieser Überzeugung der impliziten Staatsgarantie auf. Da sich nun die Spielregeln ändern, werden viele der großen Banken in den USA, Großbritannien, Japan und Euroland nicht überleben (30). - die andere neue Realität ist in den USA entstanden. Es ist das Ende des Mythos von der US-Wirtschaft als ewig brummender Motor des Weltwirtschaftswachstums (31). Das Land ist nicht nur wieder in die Rezession gerutscht, es ist auch politisch völlig gelähmt. Die USA werden das Jahr 2011 beenden, wie Griechenland das Jahr 2009 begonnen hat: Die Welt wird Schritt für Schritt zur Erkenntnis gelangen, dass das Land seine Schulden nicht mehr zurückzahlen können wird, dass seine Gläubiger keine Kredite mehr geben wollen, und dass seine Wirtschaft die staatlichen Sparprogramme nicht verkraften kann, die das Land in eine tiefe Depression stürzen würden (32). Man kann die Analogie sogar noch weiterführen: Die EU und die Banken haben von 1982 bis 2009 den Geldhahn für Griechenland aufgedreht, ohne wissen zu wollen, wofür das Geld ausgegeben wurde und ob das Land es je zurückzahlen könne. Genauso hat die gesamte Welt sich gegenüber den USA verhalten. Das Vertrauen in die amerikanische Wirtschaftsmacht war grenzenlos. Und in beiden Fällen wurde das Geld in Immobilienblasen oder durch teure Vetternwirtschaft verschwendet; in den USA sind die „Vettern", denen öffentliche Gelder zuschanzt werden, Wall Street, die Ölindustrie und das Gesundheitssystem. Riesige Summen flossen auch in den unproduktiven Militärbereich. Und in beiden Fällen erkennt nun die Welt, dass es unmöglich ist, in wenigen Quartalen die Schäden, die durch Jahrzehnte der Sorglosigkeit und Unvernunft verursacht wurden, zu reparieren. Der politisch und finanziell „perfekte Sturm" in den USA vom November 2011 Im November 2011 zieht in den USA ein perfekter politischer und finanzieller Sturm auf, im Vergleich zu dem die Ereignisse dieses Sommers wie eine sanfte Brise wirken werden. Die sechs Faktoren der zukünftigen Krise sind bereits gegenwärtig (33): - das « Superkomitee (34), das in den USA die Sparpolitik vorbereiten soll, wird an den Spannungen zwischen den beiden Parteien scheitern (35) - der Haushaltskürzungen, die ohne weitere Entscheidung umgesetzt werden sollen, wenn im Superkomitee keine andere Entscheidung gefunden werden kann, wird in Washington eine politische Krise und Spannungen insbesondere mit dem Militär und den Empfängern von Sozialleistungen verursachen. Dieser Automatismus ist bei genauer Betrachtung eine Selbstentmachtung des Kongresses und des Präsidenten. Wegen der Kürzungen wird der gesamte Staatsapparat nicht mehr richtig funktionieren. - nach S&P werden auch die anderen Rating-Agenturen die Bonitätsnote der USA herabstufen; die Flucht aus den US-Staatsanleihen wird sich verstärken (36) - Das einzige, zu dem die Fed noch in der Lage ist, sind Reden halten und die Aktienkurse oder den Benzinpreis in den USA zu manipulieren (37). Jede Hoffnung der Banken und Investoren, durch eine „wunderbare" Geldpolitik der Fed gerettet zu werden, ist damit vergeblich. - im Verlauf der nächsten drei Monate wird sich das öffentliche Defizit enorm erhöhen; denn in der Rezession sinken nun auch die Steuereinnahmen (38). Das bedeutet, dass die gerade verabschiedete höhere Schuldengrenze schon lange vor den Wahlen vom November 2012 erreicht sein wird (39). Das werden sich Investoren schon im vierten Quartal 2011 ausrechnen können und Panik wird nicht ausbleiben. Die Gläubiger der USA können sich an den Fingern abzählen, dass die USA dem Beispiel Eurolands folgen und von den Gläubigern verlangen wird, hohe Abschläge am Wert ihrer Staatsanleihen zu akzeptieren. - das neue Konjunkturprogramm des US-Präsidenten wird die Arbeitslosigkeit nicht signifikant verringern. Zum einen ist es angesichts der Größe des Problems nicht ausreichend ehrgeizig und kann die Dynamik des Landes nicht wecken. Und es wird von den Republikaner im Kongress zerpflückt werden, die von ihm nur die vorgeschlagenen Steuersenkungen übernehmen werden (40). Wir sind überzeugt davon, dass das Zusammentreffen dieser Elemente zum Jahresende 2011 den großen Finanzschock auslösen wird. Es wird der Schock sein, der uns aus der Welt von Gestern schleudert. Die Welt von Morgen ist aber noch nicht errichtet. Denn es sind verschiedene Welten möglich. Wie Franck Biancheri in seinem Buch herausarbeitet, werden die Jahre 2012 bis 2016 viele historische Weichenstellungen bringen. Hier gilt es, den richtigen Weg zu finden (41)! --------- Noten: (1) Zur Zeit, und wie wir schon seit mehreren Quartalen nicht müde werden zu betonen, ist die Medien- und Finanzhysterie wegen der Griechenlandkrise im wesentlichen Propaganda und Meinungsmache. Wer daran zweifelt, sollte sich doch einmal überlegen, ob die Lage in Griechenland sich im übrigen Euroland überhaupt bemerkbar machen würde, wenn die Medien nicht täglich darüber auf als Hauptnachricht berichteten. In den USA hingegen bedarf es keiner Berichterstattung, damit Millionen Amerikaner die Krise täglich aufs Schmerzlichste spüren. (2) Denn es geht darum, die Wirklichkeit zu verschleiern und die Sicht auf sie zu beeinflussen, während wir unsere Aufgaben ja gerade darin sehen, die Realität als das zu erkennen, was sie ist. (3) Alle drei oder vier Monate erleidet Griechenland und der Euro in den Medien einen fiebrigen Krisenschub, der erst wieder abklingt, wenn das staunende Publikum erkennt, dass das einzige bemerkenswerte, das passiert, darin besteht, dass Euroland, gewohnt mühevoll, die Grundlagen für eine zukünftige Euroland – Wirtschaftsregierung legt und Griechenland sich gleichvoll mühevoll aus seiner Schuldenfalle herausgräbt. Natürlich werden jedes Mal andere Anlässe für die Medienkampagnen herangezogen. Erst sind es die „Aufstände der Griechen gegen die Sparpolitik", die den Anfang vom Ende für den Euro einleiten (wobei die Linie, die angeblich von einer Zahlungsunfähigkeit Griechenlands unmittelbar zu einem Ende der EU führt, immer mit sehr groben Pinselstrichen gezogen wird, ohne dass es Journalisten gäbe, die einmal genauer nachfragen würden); diesen Sommer war Griechenland schuld an den weltweit abstürzenden Aktienkursen, was in einem eleganten Zirkelschluss bewies, wie schlecht es Griechenland geht. Hinter der ausführlichen Berichterstattung über Griechenland mussten natürlich so irrelevante Ereignisse wie das erneute Aufflammen der Rezession in den USA oder die Herabstufung ihrer Bonitätsnote

Awaiting the Inevitable Correction in the Silver Price Posted: 17 Sep 2011 03:31 AM PDT By Eric Fry 09/15/11 Laguna Beach, California – The International Can-Kicking Team is busy again today, as the European Central Bank, US Federal Reserve and three other central banks linked arms to kick the European debt crisis down the road until the end of the year. Specifically, the Can-Kickers announced that they would provide three-month US dollar loans to European banks to insure that the banks have enough liquidity to make it to the end of the year. If past scams of this nature are any guide, the "short-term" assistance will somehow morph into long-term or permanent assistance, funded by taxpayers. The markets are rallying because this scam "sends a powerful message," according to one financial news source. Message received: When all else fails, launch a massive bailout. The markets will probably continue rallying a while longer, and the gold price will probably continue to retreat (just as Bill Bonner has been predicating). But the longer these counter-trend moves proceed — i.e. stocks up, gold down — the better the opportunities for forward-looking investors to re-weight their portfolios. The recent selloff in gold, for example, is providing a glittering opportunity to add a little more weight to the precious metal sector. And as we mentioned in yesterday's edition of The Daily Reckoning, gold stocks, rather than gold itself, seem particularly compelling at the moment. Following up on this theme, we present the nearby chart for your consideration. First, the conclusion: Gold stocks are as cheap as they have been in a decade. Now the details: The chart below shows the price-to-EBITDA ratio of the XAU Index of stocks, both in absolute terms and in comparison to the price-to-EBITDA ratio of the S&P 500 Index. This ratio is a measure of price-to-cash-flow and tends to illustrate valuation more accurately than the more familiar price-to-earnings (PE) ratio. In absolute terms the price-to-EBITDA of the XAU Index is currently around 7.5 times, which is only about 10% higher than the price-to-EBITDA of the S&P 500 Index. Both of these metrics are as low as they have been in a decade. Obviously, however, "cheap" does not mean "buy." Cheap stocks have a tendency to get cheaper, on the way to becoming way-too-cheap. Gold stocks are cheap, but they could still fall to way-too-cheap. Silver stocks, on the other hand, may already be way-too-cheap. A Daily Reckoning reader named Kyle Sorgel makes the argument: Within the precious metals sector, silver mining stocks may be the very best bet… A consensus estimate of the total amount of silver mined from 3000 BC to now is about 44.4 billion ounces and for gold is about 4.25 billion ounces. This yields a gold-to-silver ratio of about 10.44, a far cry from the current gold-to-silver ratio of 45. In modern times, mines are pulling less silver out of the ground, relative to gold, than they did in ancient times. Total annual mine production of silver is only 8.6 times greater than total gold production. Furthermore, and most importantly, 53% of the total silver demand is used in industrial processes versus gold's 11%. This means that every year 53% of the total supply of silver is USED UP, meaning it's gone, vanished, disappeared. Silver is an extremely versatile metal and as time has progressed science has found multiple uses in which silver provides a benefit that no other metal can provide (even gold). And since the silver is used in such trace amounts, most of it can't be recovered. Based on these facts, it seems inevitable that the large price disparity between gold and silver should narrow over time. Mr. Sorgel's argument is compelling. But please remember, dear reader, inevitable is not the same thing as imminent. Eric Fry for The Daily Reckoning Read more: Awaiting the Inevitable Correction in the Silver Price http://dailyreckoning.com/awaiting-the-inevitable-correction-in-the-silver-price/#ixzz1YECbIoib

Did Donald Trump Just Mark A Near-Term Top In Gold? Posted: 17 Sep 2011 03:30 AM PDT By Trader Mark: Some of you might remember a famous story back in November 2007, when Victoria Secret supermodel Giselle Bundchen wanted to be paid in euros over dollars, as the dollar was in a horrible rut. Of course we know what happened over the next year and a half as the world's financial system was crushed and everyone ran to 'perceived' safety (the dollar). The euro was hit very hard, and we essentially had the Giselle top in that currency. Now of course post crisis, with the Fed dropping money from helicopters, the dollar has returned to its post of 'world's biggest loser' - but it's all about time frames. An interesting story along those same lines, when Complete Story »

Updated silver lawsuit IDs Morgan trading mechanisms, traders, spoof trades Posted: 17 Sep 2011 02:31 AM PDT

Is Citigroup Undervalued? Posted: 17 Sep 2011 02:23 AM PDT By Takeover Analyst: The financial holding company Citigroup (C)--hard hit from the subprime mortgage crisis and recession--has struggled to recover shareholder value. Since the reverse stock split in early May, the company has lost more than a third of its value. The stock is down 38.7% for the year while the S&P is down only 3.3%. Currently, analysts rate the company somewhere between a "hold" and a "buy". The stock nevertheless has attracted a lot of attention from notable value investors. Bill Ackman has a large stake in the company, along with Paulson & Co. at 1.15%. Core Value investors own approximately 13.5% of the $84.6B market cap company. While there is a lot of upside to Citigroup for its leading diversification in international banking, there is also lot of risk inherent in the firm. In light of the financial meltdown, irrational markets may very well have exaggerated the risk in Citigroup. The Complete Story »

2 Stocks For Rising Silver Prices Posted: 17 Sep 2011 01:28 AM PDT By Amine Bouchentouf: I n my previous article on silver, I highlighted silver's schizophrenic personality: it is both an industrial commodity and a monetary asset. This dual role makes it a trickier commodity to trade because it responds to conflicting market events. However, I've identified two scenarios that, if combined, should be bullish for silver prices going forward. The Perfect Storm for Silver Prices 1) The North Atlantic Central Banks Keeps Printing Money The North Atlantic Economies (Europe and the United States) are far from getting their financial houses in order. With several European countries on the brink of an economic meltdown, the central banks are throwing everything they can to prevent such a catastrophic event. This includes putting the printing presses on overdrive. Total Money Supply in the United States. Source: The Federal Reserve of St Louis (Thanks to hyperinflation for sharing) Both the Federal Reserve and the European Central Bank seem to Complete Story »

China sets national gold standard Posted: 17 Sep 2011 01:17 AM PDT China sets national gold standard - Xinhua Fri Sep 16, 2011 10:11am GMT * Sets national gold standard at 99.999 pct purity * New standard conforms to international requirements * Move expected to accelerate opening up of gold trading By Fayen Wong and Lewa Pardomuan SHANGHAI/SINGAPORE, Sept 16 (Reuters) - China has set its first national standard for gold at 99.999 percent purity, state media Xinhua reported on Friday, citing the National Gold Standardisation Technical Committee. The national standard, which is in line with requirements for gold bars set by the London Bullion Market Association, is seen by industry observers as another step towards liberalisation of the country's booming gold sector, paving the way for the opening up of a physical trading market in future. "Chinese gold bars are now only recognised by local exchanges but not by the international market," said a physical gold dealer in Singapore. "One of the requirements for recognition by the international market is 99.999 percent purity. I think this is a necessary step to link up with the rest of the world." The new standard would improve the sector's technology, "promote the development of the country's gold industry and bring new changes to the market of gold investment and consumption," Sun Zhaoxue, president of the China Gold Association, was quoted as saying in the Xinhua report. The new standard had already been approved by the government's quality bureau, Xinhua said. At present, the highest purity level for gold available in China is at 99.99 percent, while most jewellery has a purity of 99 percent. Gold demand in China, the world's No.1 producer, has exploded in recent years on the back of robust economic growth, and the country is forecast to soon overtake India as the largest gold consumer. Appetites among Chinese for gold jewellery and investment producers has accelerated Beijing's opening up of the gold sector to foreign players. Since August, China has allowed two foreign banks, HSBC Holdings Plc and Australia and New Zealand Banking Group Ltd , access to its gold futures market, boosting liquidity in the market and paving the way for the launch of more investment products. http://af.reuters.com/article/metals...110916?sp=true

Austria Restricts GOLD Purchase By Individuals Posted: 17 Sep 2011 01:10 AM PDT From CommodityOnline: VIENNA (Commodity Online): A newly enacted Gold policy in Austria that restricts the free purchase of gold by individuals may just be the start of a European policy shift that might border on infringing an individual's financial freedom. As per the new Austrian policies, individuals who wish to purchase gold will be restricted to purchase only 15000 Euros worth of gold at a time making gold an officially "restricted" commodity. Earlier, one had to just call the local Austrian bank about 2-4 days in advance and state the amount of Gold one wishes to purchase. But that has now been scrapped. Although, the officials quote money laundering as the reason for the new polices, one but wonders if there isn't more to it. -Meanwhile, in Italy, top industrials and professionals have sent a letter to the government and parliament to ban all cash transactions above 300 Euros, and only permit electronic transfers!

Will Gold and Silver Move Lower Together? Posted: 17 Sep 2011 01:00 AM PDT SunshineProfits

Got Gold? Austria Limits Purchases to $15000 Euros Posted: 17 Sep 2011 12:27 AM PDT "As per the new Austrian policies, individuals who wish to purchase gold will be restricted to purchase only 15000 Euros worth of gold at a time making gold an officially "restricted" commodity." Click here...

What a Major Banking Crisis Would Do To the GOLD Price Posted: 16 Sep 2011 11:46 PM PDT Will There Be a Role for Gold? From Julian D. W. Phillips of GoldForecaster.com: The ripple effect of a Greek exit from the Eurozone in a bankrupt state will not only savage their balance sheet but trigger fears in the remaining depositors that their banks could be next. The structure of the banking system is so interwoven that it is possible that it will seize up, if only for a while. Trust in government's finances in the developed world is already at a low. It will take governments to act 'in concert' to save the banking industry, such as we have seen in the U.S.A. but internationally. This is happening right now! Failure to do so will result in some spectacular bank collapses. With the monetary system going into shock the need for a reference point for value becomes critical. The head of the World Bank, Mr. Zoellick, called for gold to be used in that role last year. His warnings this week of the dangers facing the world reiterate the depth of the crisis and validate last year's call. We wonder if the global monetary authorities will now listen. Julian D. W. Phillips More @ GoldSeek.com

LISTEN – Mayor Bloomberg Warns of Riots Posted: 16 Sep 2011 11:37 PM PDT by Mac Slavo, SHTFPlan.com: Very few Americans have ever thought about the prospect of an economic depression or collapse so severe that it could result in riots like those we've seen in the middle east and Europe over the last year. But while most of our countrymen have had their heads in the sand, alternative news media has been warning about the possibility of civil unrest, riots, violence and even martial law if the economy continues on its unabating downward trajectory. It seems that the realities of what we face are starting to reach the mainstream, as Mayor Bloomberg of New York recently noted on WOR Newstalk 710: Read More @ SHTFPlan.com

How Can They Notice Swiss Franc's Devaluation and Not Gold's Too? Posted: 16 Sep 2011 11:33 PM PDT ¤ Yesterday in Gold and Silver The low on Friday came shortly after 11:00 a.m. Hong Kong time.  From there, the price flopped around a bit until the London open at 8:00 a.m. BST...British Summer Time...which is 3:00 a.m. Eastern. Then a rally of some substance began...and it grew stronger as the day wore on...with the maximum gains coming once London closed for the day at 11:00 a.m. Eastern.  The party ended at 12:35 p.m....and gold sold off a bit going into the close of electronic trading at 5:15 p.m. The move, from absolute low to absolute high, was about $60...and gold closed up $22.70 spot on the day.  Net volume wasn't overly heavy at 180,000 contracts. Silver was also under pressure right from the open of the New York Access Market on Thursday night...and the low was around $39.40...a price that silver bounced off three times...the last being at the London open. From that low, silver also had a very decent run to the upside, with the price gaining 50 cents between lunchtime in New York...and the end of the rally at 12:35 p.m. Eastern, the same moment that gold's rally ended. From there, the silver price sold off more than 50 cents before gaining some of that back going into the close of thinly-traded New York Access Market. From silver's absolute low to absolute high, the metal was up about $1.50...and closed the Friday trading session up 75 cents. Considering the price activity, volume was an incredibly light 33,000 contracts. For entertainment purposes only, here's the dollar chart for the week that was.  From the Monday open to the Friday close, the dollar was down about 95 basis points. The gold stocks rallied until 1:00 p.m. Eastern...and then slid a hair into the close.  The HUI closed up 1.67%. Here's the 5-day HUI for the week that was. From last Friday's close to this Friday's close, the HUI was down about 3.3% on the week. For the most part, the junior silver producers were up some rather impressive percentages...and I had one up double digits.  But, for whatever reason, the silver stocks that make up Nick Laird's Silver Sentiment Index did not fare as well...and the index only finished up 0.79% on the day. (Click on image to enlarge) The CME's Daily Delivery Report showed that 37 gold and 14 silver contracts were posted for delivery on Tuesday.  Not much activity...but the link is here if you want to check it out anyway. The GLD ETF showed an increase of 340,696 troy ounces...and there were no reported changes over at SLV. The U.S. Mint had another small sales report yesterday...adding another 75,000 silver eagles.  Month-to-date silver eagle sales are 1,043,000. The Comex-approved depositories showed that they received 643,844 ounces of silver on Thursday...and shipped 485,079 ounces out the door. Well, Friday's Commitment of Traders Report [for positions held at the close of Comex trading on Tuesday, September 13th] showed an improvement in the Commercial net short positions in both silver and gold. In silver, the Commercial net short position declined by 1,919 contracts down to 45,387 contracts...or 226.9 million ounces.  The '4 or less' bullion banks are short 198.4 million ounces of that...and the '5 through 8' bullion banks are short 41.7 million ounces. Of the 45 traders holding silver short positions in the Commercial category, one of them holds 50% of the entire net short position all by themselves...and that's JPMorgan.  The remaining '2 through 8' bullion banks, seven in total, are short the other 50% of the Commercial net short position between them.  No shades of grey here. There was a big drop in gold's Commercial net short position...17,246 contracts...or 1.72 million ounces.  The Commercial net short position in gold is now down to 21.0 million ounces. Of that amount, the '4 or less' bullion banks are short 15.0 million ounces of gold...and the '5 through 8' bullion banks are short 5.17 million ounces.  The '8 or less' bullion banks together are short 20.17 million ounces...not quite 100% of the entire Commercial net short position in gold.  In silver the '8 or less' bullion banks are short 105.8% of the Commercial net short position...and it used to be a much higher percentage than that. Without doubt, the bullion banks' short positions have declined even further since the Tuesday afternoon cut-off.  The price action would indicate that...and I even suspect that the big rally we saw in both metals on Friday involved a fair amount of short covering. I had a couple of readers send me a brief 'heads up' about bullion sales in their respective parts of the world.  The first is from British reader Tariq Khan.  He had this to say... "My coin dealer told me today that he just does not understand what is going on with the gold price. He opined that the Central bankers are unlikely to succeed if they are responsible for this take down. He is just seeing too much physical demand at the moment. He is turning away enquiries from abroad.  The physical supply is disappearing fast, although he managed to find me some sovereigns (these tend to be tax efficient for us in the UK as sovereigns are still legal tender and have been since 1847). I have another coin dealer I occasionally use, he had only 8 gold sovereigns and 4 half sovereigns. The only metal he has to sell at the moment are Silver Eagles and Krugerrands. He tends to sell both silver and gold bars as well, but he has none of those available either. He is out of all other products." The other is from U.S. expat Bill Goodrich from Hua Hin, Thailand...and this is his report. "Today I was down in the gold district in Bangkok to buy some bullion on this little pullback...and there was no physical bullion to be had. All the gold shops were packed...and the only thing you could do was pay for an order that would be delivered in 10 days to 2 weeks. I have never seen a lack of physical bullion in this district ever before. There is physical gold on display, but it is all jewelry, which has a much higher margin than just the bullion bars that everyone was wanting." "At least in this part of the world when gold drops even this little bit, the demand is astounding...and people are out in droves buying for cash. Here, every trade is physical gold...and all the transactions are cash on the barrelhead, so I have no fear that gold will really get a chance to pull back very far at least if the sentiment all over the Asia Zone is the same as it was here today." Here's a really neat graph that I lifted from yesterday's Casey Daily Dispatch.  It shows bank exposure to Greek debt by type of debt.  It's worth spending a few moments on. (Click on image to enlarge) I don't have that many stories for you today...and only one that I've saved for today's column, because it was just too long to go in a weekday report. Email Print As Ted Butler said on the phone yesterday, it's impossible to tell whether we've seen the end of this engineered price correction in both metals or not...especially in gold. Updated silver lawsuit identifies Morgan trading mechanisms, traders, 'spoof'' and 'fake' trades. China sets national gold standard. Barclays to Open London Precious Metals Vault ¤ Critical Reads Subscribe Mayor Bloomberg predicts riots in the streets if economy doesn't create more jobs "We have a lot of kids graduating college, can't find jobs," Bloomberg said on his weekly WOR radio show. "That's what happened in Cairo. That's what happened in Madrid. You don't want those kinds of riots here." Bloomberg's unusually alarmist pronouncement came as President Obama has been pressuring reluctant Republicans to pass his proposed job creation plan. "The damage to a generation that can't find jobs will go on for many, many years," the normally-measured mayor said. This story is posted over at the NYDailyNews.com website...and I thank reader Scott Pluschau for sending it along.  The link is here. View full GSD edition Gordon Brown fears euro crisis worse than Lehman as 1930s beckon Gordon Brown has warned that Europe's fast-escalating crisis is now more dangerous than the Lehman Brothers disaster three years ago, threatening to tip the West into a 1930s-style slump unless global leaders work together to take dramatic action. "The euro can't survive in its present form and will have to be reformed drastically," he told a mostly-Chinese audience at the World Economic Forum in Dalian. "It has morphed into a sovereign debt crisis, and is more serious than 2008 because governments then could intervene to sort of out banks. Now both banks and governments have problems," he said. This must read story from yesterday's edition of The Telegraph was sent to me by Roy Stephens...and the link is here. View full GSD edition World's central banks flood market with dollars Five of the world's top central banks acted jointly Thursday to provide unlimited dollar loans to banks, a move aimed at easing the growing tensions in the eurozone's financial sector and shielding the global economy from its jitters. The European Central Bank said it will coordinate with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank to offer three-month dollar loans to banks through the end of this year. There was no separate statement from the Fed. The coordinated effort aims to prevent Europe's debt crisis from derailing the global economy's rebound from recession, a topic that will dominate talks between U.S. Treasury chief Timothy Geithner and his European counterparts at a meeting beginning Thursday night and running through Saturday in Poland. This AP story was picked up by news.yahoo.com yesterday...and it's certainly worth the read as well.  I thank J. Cherry for sharing this story with us...and the link is here. View full GSD edition Ireland's trade surplus third highest in EU at €21.3bn Despite Ireland's banking woes, the country seems to be doing OK economically, at least for the moment. This was fuelled by a 7 per cent rise in exports over the period to €46.2 billion, while imports were 9 per cent higher at €24.9 billion. The UK reported a deficit of £56 billion, the largest in the EU, followed by France at €45 billion. The other so-called PIIGS nations all reported large deficits, with Spain at €23.8 billion, Italy recording a €22.1 billion trade deficit, and Greece at €9.5 billion. Portugal's trade deficit over the six months was €8.6 billion. This short story, posted in the Irish Times yesterday, is well worth skimming...and I thank Roy Stephens for sending it.  The link is here. View full GSD edition UBS rogue trader: Investigations focus on fictitious hedges A major internal inquiry is under way at the Swiss bank's London office to understand how its control systems failed to pick up unauthorised trades by its "Delta One" trading desk as long ago as 2008. Investigators are understood to be reaching the conclusion already that the fraudulent activity was almost identical to that discovered at French bank Société Générale three years ago. "This isn't just spookily similar to Soc Gen. It is exactly the same," said one source with knowledge of the situation. This is a very interesting read...and, once again, I thank Roy Stephens for sharing it with us.  The link to the story out of yesterday's edition of The Telegraph, is here. View full GSD edition Interview with Jim Rickards: King World News Here's an interview that Eric slipped into my in-box in the wee hours of this morning.  I haven't had time to listen to it yet, but certainly will before the day is out.  As always, I consider what Jim has to say as a must listen...and the link is here.

Barclays to Open London Precious Metals Vault Posted: 16 Sep 2011 11:33 PM PDT Barclays to Open London Precious Metals Vault The facility may be operational by next summer, the bank confirmed in a statement. It's joining The Brink's Co., which opened a vault in London earlier this year and is considering building another facility. Gold is set for an 11th straight annual gain, the longest winning streak since at least 1920, as investors have shunned equities and some currencies amid concern about slowing economic growth and debt crises. This short, but very interesting Bloomberg story, was sent to me by reader Scott Pluschau...and the link is here.

World's central banks flood market with dollars Posted: 16 Sep 2011 11:33 PM PDT World's central banks flood market with dollars Five of the world's top central banks acted jointly Thursday to provide unlimited dollar loans to banks, a move aimed at easing the growing tensions in the eurozone's financial sector and shielding the global economy from its jitters. The European Central Bank said it will coordinate with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank to offer three-month dollar loans to banks through the end of this year. There was no separate statement from the Fed. read more

Rare Coins | Understanding Coin Grading Posted: 16 Sep 2011 11:00 PM PDT According to the Professional Coin Grading Service (PCGS), grading is a way of determining the physical condition of a coin. A coin's grade is a sort of shorthand for describing the condition of a coin. With experience and the aid of the appropriate books, many people can learn to grade with a moderate degree of [...]

LISTEN – Silver Stocks – Fraud or Manipulation? Posted: 16 Sep 2011 08:58 PM PDT Wonder what's up with your silver stocks? Wonder no more as this week Jimmy P and friends tackle the issues surrounding silver mining stocks. From Jim Puplava and Financial Sense: Silver Stocks – Fraud or Manipulation? IN THE FIRST AUDIO ABOVE: Expert panel discussion: Dr. Keith Barron, Dr. Leanne Baker, David Morgan, Chen Lin, and David Bond In a special broadcast, Jim is joined by famed exploration geologist Dr. Keith Barron, Dr. Leanne Baker, Managing Director of Investor Resources LLC, silver expert David Morgan of the Stone Investment Group, analyst and metals newsletter editor Chen Lin, and silver expert and editor of SilverMiners.com David Bond to discuss recent fraud allegations against several silver companies, particularly Silvercorp Metals. In-Depth Interview with Lorne Waldman of Silvercorp Metals Inc., as well as Robert Archer of Great Panther and Jason Reid of Gold Resource Corp. IN THE SECOND AUDIO ABOVE: Jim is joined by Lorne Waldman of Silvercorp Metals to respond directly to the fraud allegations leveled at the company. In addition, two other top silver executives, Robert Archer, President and CEO of Great Panther Silver, and Jason Reid, President of Gold Resource Corp. join Jim to discuss allegations made against their companies and how they addressed them. Much More @ FinancialSense.com  This posting includes an audio/video/photo media file: Download Now

Gold and Silver rebound as expected/huge news on the silver fraud case against JPMorgan Posted: 16 Sep 2011 03:37 PM PDT

TheDailyGoldPodcast with Jeb Handwerger 9/15 Posted: 16 Sep 2011 03:36 PM PDT Was Thursday a bottom in the gold and silver stocks? We discuss with Jeb Handwerger of goldstocktrades.com.

By the Numbers, Week Ending September 16 Posted: 16 Sep 2011 02:16 PM PDT Just below is this week's closing table, followed by the CFTC disaggregated commitments of traders (DCOT) recap table for the week ending September 16, 2011.     If the images are too small click on them for a larger version. Continued… Comments:  Gold and silver correcting.  Gold and silver down for the week in all fiat currencies, but gold down more in Euro than in USD. Positive money flow into gold and silver ETFs suggests modest dip buying. Big Sellers of futures took advantage of weakness to cover or offset some shorts, but not a huge amount.  Mining shares, big and small, answer gold and silver lower, but do not oversell.  US dollar correcting after the CHF surprise the previous week. ICE commercial traders jump all over the short side of the greenback, adding a whopping 15,042 contracts on the short side of the dollar.  Ted Spread higher and reflects heightened bank to bank worry, a troubling sign for world equity markets. Lower highs and lows for gold, but mid-range closes for both suggests indecision.  Hi-lo spreads contract on the selloff, suggesting less than robust selling pressure.  Falling open interest on the gold selloff suggests liquidation is underway, but Big Sellers willing to cover shorts rather than press them.        Vultures, (Got Gold Report Subscribers) please note completely new chart links for all of  the Vulture Bargain Candidates of Interest  (VBCIs) and Vulture Bargain (VB) stocks.  The new charts are available now on the subscriber pages along with all our technical charts for gold, silver, mining share indexes and our most important ratios.  Updates to the linked technical charts should be done by the usual time, (18:00 ET) on Sunday.    Gold and Silver Disaggregated COT Report (DCOT) In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.   (DCOT Table for September 16, data as of September 13. Source CFTC for COT data, Cash Market for gold and silver.)

What daily gold/silver blogs/commentaries/etc. do you follow? Posted: 16 Sep 2011 11:13 AM PDT Just wondering!

How Many Fingers is the Government Holding Up? Posted: 16 Sep 2011 10:13 AM PDT It's not easy writing a weekly newsletter when you don't know which countries will be using what currencies by the end of the week. Or which banks will belong to what governments... Or which central bank will light a money bomb under which economy. So we'll turn our attention to books, movies and songs for talking points instead. In the hilarious jailbreak movie Two Way Stretch featuring Peter Sellers, three convicts are sent down to the quarry with their new supervisor. There isn't much rock lying around, so the "Chief" decides to give one of the convicts a stick of dynamite to blow some rock away. Behind Chief's back, the convicts raid the dynamite box and slip the sticks to the convict directed to blow the rock. Chief, thinking he is only blowing up one stick of dynamite, accuses the convicts of cowardice as they run for cover. Shortly after, the surrounding area is covered in debris. The economic authorities today, whether in Europe, the US or Australia, are just as clueless as Chief. They have committed themselves to dynamite without understanding what they are dealing with, who they are dealing with or the type of destruction their tools are capable of. The gold price is the signal, like the convicts running for cover, that something bad is about to happen. The scene is just as comical as in the movie. The outcome will not be as funny. The world will either be blown sky high with inflation, or covered in deflationary rubble. On to the next metaphor, quoting from Wikipedia's Hotel California entry: In a 2009 interview, Plain Dealer music critic John Soeder asked Don Henley this about the lyrics: On "Hotel California," you sing: "So I called up the captain / 'Please bring me my wine' / He said, 'We haven't had that spirit here since 1969.'" I realize I'm probably not the first to bring this to your attention, but wine isn't a spirit. Wine is fermented; spirits are distilled. Do you regret that lyric? Henley responded, "Thanks for the tutorial and, no, you're not the first to bring this to my attention-and you're not the first to completely misinterpret the lyric and miss the metaphor... My only regret would be having to explain it in detail to you, which would defeat the purpose of using literary devices in songwriting and lower the discussion to some silly and irrelevant argument about chemical processes." The same misunderstandings are rife today regarding economics. Politicians and pundits bicker over political and legal fixes to economic and financial problems, completely missing the point. Case in point: EU politicians keep repeating that Greece can't leave the Euro because the European treaties don't allow it. Hence the Hotel California lyric 'You can check out anytime you like, but you can never leave.' The Greek's answer should and most likely will be, 'Watch me leave.' They will simply walk away. 'Sue me!' Politicians think that governments can redefine reality, thereby fixing the problems they created. Orwell's book 1984 explores this concept at painfully great length. The second half of the book essentially features the government torturer asking his victim 'how many fingers am I holding up?' 'Three' answers the man on the rack. Then the torturer tells his victim that the government has now declared three to be four. He asks his victim, 'how many fingers?' Only after an unknown amount of torture (and very many pages of the book) the victim gives in and genuinely believes that three is four. Just saying it wasn't good enough for the government, the victim had to believe it. And so the politicians continue today. 'Greece cannot leave the EU.' 'The banks are not insolvent.' 'Deficits don't matter.' 'Stimulus creates jobs.' 'Invading Iraq made us safer.' 'Wars stimulate the economy.' 'Italy will not default.' And so on. As Greg Canavan wrote in Thursday's DR, 'But saying so doesn't make it so.' Do you believe the politicians, Daily Reckoning reader? More likely, you are still on the rack, telling the government what it wants to hear just so it leaves you alone. After all, you pay taxes to support the stimulus and the wars, keep accounts at banks, line up at airports to be scanned and prodded, and hold a diversified portfolio of blue chips. If you resist the government, they will stretch you on all four limbs. More government spending, more anti-terrorist measures, less deposit insurance and no bank bailouts, a collapse in the stock market ... the government has control over all aspects of life now. It can redefine your perception of reality. For a while. Eventually, economic reality determines the outcome, not government decrees. That's what Orwell missed and Austrian Economist Ludwig von Mises got right. People can believe central planning works, but even if the planners can redefine truth, it will fail. Three remains three. Eventually, the truth comes out and economic reality strikes. Mises explains how in his essay Socialism. Sadly, by the time reality emerged, a lot of people died in centrally planned economies of the last century. The best way to get through the gloom in the meantime is to sing songs like Hotel California, read books like 1984 and watch movies about government nincompoopery, like Johnny English. Or just read the news drunk. Here are some highlights: From the Australian: 'OPTUS has promised not to criticise the National Broadband Network in key regions for 15 years under a deal that raises new warnings the $36 billion project will stifle competition... The provision, designed to help shore up the number of customers using the NBN, stops Optus from being "expressly critical of" or making "any express adverse statement" about the performance of the network.' (emphasis is mine) From the Telegraph, regarding sovereign bonds expected to default: 'How come European banks have got so much of the stuff? Well ironically, this is one lending decision gone wrong that the banks cannot be blamed for. In response to the original banking crisis, regulators ordered banks substantially to increase their liquidity buffers. Government bonds are generally viewed as the most liquid and least risky assets to hold, so that's where the money went. 'That these regulatory obligations also helped governments fund their ever growing deficits is by the by. In any case, nowhere is the law of unintended consequences more in evidence than in financial regulation. By seeking to address the last crisis with greater liquidity buffers, regulators succeeded only in sowing the seeds for the next one. A banking crisis that transmogrified into a sovereign debt crisis now shows every sign of transmogrifying back into another banking crisis.' Central banks are now attempting to cover up the mess for their politician buddies by handing out cash to banks. From Reason.com comes something so disgusting and absurd about the American economic stimulus efforts that your mind will not allow you to understand the explanation first time around: 'Here's the problem: Those CBO reports don't definitively prove anything about the real-world effect of the stimulus. That's because in order to produce those reports, the CBO effectively re-runs the same models that it used to estimate the effects of the stimulus before it started. 'The reports aren't based on a detailed measurement of real-world output. Instead, they're based on measuring the input (how much money was spent), and then using models to project how big the multiplier effect has been.' In other words, how was the US stimulus effort's success measured? Using the models that forecast its success. It works like this: You create an economic model that forecasts how many jobs will be created from stimulus. Then you do the stimulus. Then you run how much stimulus was done by the models and they tell you how many jobs were created. How many were actually created is irrelevant. And just like in 1984, the government's lies are 100% open and available to see. 'Indeed, CBO director Doug Elmendorf has explicitly made this point, agreeing at a speech earlier this year that that "if the stimulus bill did not do what it was originally forecast to do, then that would not have been detected by the subsequent analysis."' The fact that the government specifically hires people who come up with data that makes those models predict what the government wants them to predict is clear. The fact that we would have been much better off without all this government intervention in the first place isn't a popular point to make. 'It's too late for that, we're in this mess now.' The fact that the argument against government intervention has always existed and continues to apply is considered irrelevant. According to governments, people need nanny states to look after them. The irony is that the nanny states of the world now need looking after. They are out of money. And who should they turn to but the country emerging out of nanny-statehood - China. Yes, according to some, Europe will be turning to the human rights abusers for their latest bailout. But this too is government rearranging the truth. China thinks it needs to keep its currency down to maintain economic growth. How does it do that? By printing Yuan and buying foreign bonds. As Cullen Roche puts it on PragCap.com 'what happens when China commits to buy Eurozone debt is that they are actually targeting the exchange rate.' It has little to do with any White Knight benevolence and all to do with more government manipulation that hurts Europe in the first place. As the crisis hots up again, do not give in to government's attempts to redefine truth for you. Instead, when they ask you 'how many fingers am I holding up?', simply raise one finger and ask 'How many am I holding up?' Nickolai Hubble. The Daily Reckoning Weekend Edition Similar Posts: For Every Boom There is a Bust The Pros and Cons of Investing in India Emerging Markets and Commodities: Where Stimulus is REALLY Going REITs… A Thing to Avoid Never-Ending Government Lies About Markets

Why it could be "risk off" all over again next week Posted: 16 Sep 2011 09:19 AM PDT From Kimble Charting Solutions: ... I'm sorry to bore you with several currency posts, yet I remain of the belief, that if we can get the currencies correct, how we structure our portfolios becomes much easier! In my humble opinion the situation in the dollar/euro right now, and its outcome in the next few weeks will be one of the most important outcomes we have seen in months and months... Read full article (with charts)... More on the markets: A "game-changing" chart you need to keep an eye on Top SocGen analyst warns: "Killer wave" forming in stocks Porter Stansberry: An update to my "End of America" warnings

They have learned nothing: The Federal Reserveis using our money to bail out European banks AGAIN Posted: 16 Sep 2011 09:15 AM PDT From The Economic Collapse: For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress. Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments, and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists. It is called the Federal Reserve, and today we found out that once again the Fed is... Read full article... More on the Federal Reserve: How QE3 could destroy the Federal Reserve The terrifying "solution" the Federal Reserve, Obama, and Congress will try next Why popular economist Nouriel Roubini is dead wrong about the Federal Reserve

New York City mayor Bloomberg warns of riots Posted: 16 Sep 2011 09:06 AM PDT From SHTFplan: Very few Americans have ever thought about the prospect of an economic depression or collapse so severe that it could result in riots like those we've seen in the middle east and Europe over the last year. But while most of our countrymen have had their heads in the sand, alternative news media has been warning about the possibility of civil unrest, riots, violence, and even martial law if the economy continues on its unabating downward trajectory. It seems that the realities of what we face are starting to reach the mainstream, as Mayor Bloomberg of New York recently noted on WOR Newstalk 710: The public is not happy. The public knows there’s something wrong in this country. And there is. The public does not know what, necessarily, or disagrees on what, doesn't know how to fix it, or disagrees on what the fix should be. The bottom line is... Read full article... More Cruxallaneous: The most disturbing news we've heard this month Warning: Another violent "flash mob" was reported last night If you have recently purchased a gun, it's time to take the next step

The Drama Continues For Yahoo Posted: 16 Sep 2011 08:42 AM PDT By Zacks.com: The latest rumor is that Yahoo Inc. (YHOO), which remains one of the biggest names in Internet business and online search, is seeing a growing number of bids for the whole or a part of its business. The suitors appear to be a number of private equity funds, including Silver Lake Partners, the fund that made a huge profit from buying a stake in Skype from eBay Inc. (EBAY) and subsequently selling it to Microsoft Corp. (MSFT). A consortium of Yahoo shareholders could also be interested in buying out the company, according to media reports. Others with an interest in Yahoo appear to be AT&T Inc. (T), News Corp. (NWS) and Verizon Communications Inc. (VZ). The news comes on the heels of a principal shareholder, Daniel Loeb (5.2% stake in Yahoo through the Third Point LLC fund) calling for a resignation of a number of members of the board. The Complete Story »

GEAB N°57 is available! Global systemic crisis - Fourth quarter 2011: Implosive fusion of global financial assets Posted: 16 Sep 2011 08:31 AM PDT - Public announcement GEAB N°57 (September 16, 2011) - As anticipated by LEAP/E2020 since November 2010, and often repeated up to June 2011, the second half of 2011 has started with a sudden and major relapse of the crisis. Nearly USD 10 trillion of the USD 15 trillion in ghost assets announced in GEAB N°56 have already gone up in smoke. The rest (and probably much more) will vanish in the fourth quarter of 2011, which will be marked by what our team calls "the implosive fusion of global financial assets". It's the two major global financial centers, Wall Street in New York and the City of London, which will be the "preferred reactors" of this fusion. And, as predicted by LEAP/E2020 for several months, it's the solution to the public debt problems in some Euroland countries which will enable this reaction to reach critical mass, after which nothing is controllable; but the bulk of the fuel that will drive the reaction and turn it into a real global shock (1) is found in the United States. Since July 2011 we have only started on the process that led to this situation: the worst is ahead of us and very close! In this issue N°57, we have chosen to address, very directly, the great manipulation organized around the Greek crisis and the Euro (2), whilst describing its direct link with the implosive fusion process of financial assets worldwide. Also in this issue, LEAP/E2020 presents its anticipations for the gold market for the period 2012-2014 as well as its analyses on neo-protectionism which will be introduced from the end of 2012. In addition to our monthly recommendations on Switzerland and the Swiss Franc, currencies, real estate and financial markets, we also present our strategic advice to the G20 leaders less than two months from the G20 summit to be held in Cannes. Greek crisis and the Euro: Itemizing the huge manipulation in progress But let's come back to Greece and what is beginning to be a "very repetitive old story (3)" which, as we have already explained, returns to the front of the media stage every time Washington and London are in serious difficulties (4). Moreover, coincidentally, the summer has been disastrous for the United States which is now in recession (5), which has seen their credit rating cut (an event deemed unthinkable by all the "experts" only six months ago) and exposed their political system's state of widespread paralysis (6) to an astonished world, all whilst being incapable of putting any serious measure in place to reduce their deficits (7). At the same time, the United Kingdom is sinking into depression (8) with riots of uncommon violence, an austerity policy that fails to control budget deficits (9) whilst plunging the country into an unprecedented social crisis (10), and a ruling coalition that doesn't even know why it governs together against the backdrop of the scandal of collusion between political leaders and the Murdoch empire. No doubt, in such a context, everything was ripe for a media relaunch of the Greek crisis and its corollary, the end of the Euro! If LEAP/E2020 had to summarize the "Hollywood style" or "Fox News" (11) scenario, we would have the following synopsis: "While the US iceberg is ramming the Titanic, the crew leads the passengers in search of dangerous Greek terrorists who may have planted bombs on board!" In propaganda terms, it's a known recipe: it's a diversion to allow, first of all, the rescue of the passengers one wants to save (the informed elite who know very well that there are no Greek terrorists on board) since everyone can't be saved; and then, hide the problem's true nature for as long as possible to avoid a revolt on board (including some of the crew who sincerely believe that there really are bombs on board). Focusing on the background, we must emphasize that the "promoters" of a Greek crisis presented as a fatal crisis for the Euro have spent their time repeating it for almost two years without any of their forecasts coming to pass in any shape or form (12) (except to continue talking about it). Facts are stubborn: despite the media outcry that should have seen off many economies or currencies (13), the Euro is stable, Euroland has come on in leaps and bounds in terms of integration (14) and is about to break even more spectacular new ground (15), the emerging countries continue to diversify out of US Treasury Bonds and buy Euroland debt, and Greece's exit from the Euro zone is still completely beyond consideration except in the Anglo-Saxon media articles whose writers generally have no idea of how the EU functions and even less of the strong trends that drive it. Now our team can do nothing for those who want to continue to lose money by betting on a Euro collapse (16), Euro-Dollar parity, or Greece's Euroland exit (17). These same people spent lot of money to protect themselves against the so-called "H1N1global epidemic" that experts, politicians and the media of all kinds "sold" for months to people worldwide and proved to be a huge farce fueled in part by pharmaceutical companies and cliques of experts under their orders (18). The rest, as always, is self-propelled by the lack of thought (19), sensationalism and mainstream media conformity. In the case of Euro-Greek crisis, the scenario is similar, with Wall Street and the City in the role of the pharmaceutical companies (20). When Wall Street and the City panic before the solutions in the course of forging Euroland In fact we recall that what terrifies Wall Street and the City are the lessons that Euroland's leaders and its people have been in the process of learning from these three years of crisis and the ineffective solutions that have been applied. The nature of Euroland creates a unique forum for discussion among the elite and American and British public opinion. And this is what disturbs Wall Street and the City, which is systematically trying to kill this forum, either by trying to plunge it into a panic by announcing the end of the Euro for example; or by reducing it to a waste of time and evidencing Euroland's ineffectiveness, an inability to resolve the crisis. Which is the limit given the complete paralysis prevailing in Washington! However, it's really this discussion forum that allows Eurolanders to move forward on the path to a lasting solution to the current crisis. This discussion forum is an integral part of European construction where opposing views of the methods and solutions confront each other before ultimately agreeing on a compromise (and it's still the case as the very important decisions taken since May 2010 prove). Thus it broadens the debate to a whole raft of participants, coming from 17 different countries (21), several common institutions, and it roots itself in the discussions of seventeen public opinions. Yet it's from the clash of ideas that light shines forth: of the brutal clash of ideas, the Greek philosopher Heraclitus said 2500 years ago "Some it makes gods, some it makes men, some it makes slaves, some free". But Euroland's citizens refuse to let this crisis turn them into slaves and that's why the current debates within Europe are needed and useful. In three years, between 2008 and 2011, they have made two key things possible in the future: . they relaunched European integration around Euroland and henceforth placed it on a path of accelerated integration. Our team now expects a strong revival of European politics from the end of 2012 (similar to the 1984-1985 period) including a Euroland political integration treaty which will be put to a Euroland-wide referendum by 2015 (22) . they allowed the gradual emergence of two simple but very strong ideas: saving private banks is of no use to solve the crisis and it is necessary that the markets (that is to say essentially the big Wall Street and City financial operators) fully assume their risks without any further guarantee from the state. Today, these two ideas are at the heart of the Euroland debate, both in public opinion and amongst the elite ... and they gain ground every day. This is what causes fear on Wall Street, in the City, and amongst major private financial operators. This is the wick that has nearly burned down that will trigger the implosive fusion of global financial assets in the fourth quarter (in the prevailing context of the US recession and its inability to reduce its public deficits). If markets begin to anticipate a 50% drop in Greek and Spanish securities it's because they really sense the direction which events in Euroland are taking. For LEAP/E2020, there is no doubt that minds are ripe, throughout most of Euroland, for private creditors being asked to pay 50%, or even more, to resolve the future problems of public debt. This is, without doubt, a problem for European banks, but it will be managed to protect depositors. The shareholders themselves will have to take full responsibility: besides it's really the foundation of capitalism! Wall Street and the City, and their media intermediaries desperately want this debate not to take place, regardless of whether it's ended by panic, so that governments should be forced to listen to their "experts" who assure them that the only way is to continue to recapitalize banks, and flood them with liquidity (23) ... as is the case in Washington and London. Two countries where these same financial institutions reign supreme in the government. Incidentally the battle rages around the ECB as we mentioned in a previous GEAB: the appointment of Mario Draghi, a formerly with Goldman Sachs, the resignation of Jurgend Stark (24), ... arise out of these attempts to put Frankfurt under the same tutelage as London and Washington. But they are doomed from the start by virtue of this open forum, structurally inscribed in European construction, where discussions are fed by the failed policies of 2008 and the growing outbreak of public opinion in the debate. "Qui va piano va sano e qui va sano va lontano" (25) as the Italians say. This crisis is of historic proportions as we have said since February 2006. The steps to take to get through it as best as possible and come out of it stronger (free men and not slaves to quote Heraclitus) thus require serious and deep discussion (26) ... therefore time. And the time taken by the Eurolanders, is money lost to the markets ... which explains their fears. LEAP/E2020 thinks, of course, that it's also necessary to act and we have pointed out from May 2010 that the actions taken in Euroland were of a magnitude unprecedented in recent European history. And we believe that we must allow time for the second aid package to Greece to be implemented. For the rest, we know also that the current leaders are mostly "at the limit" and it will be necessary to wait until the mid-2012 to witness a new and powerful boost to Euroland integration (27). Meanwhile, with 340 billion USD to find for refinancing in 2012 (28), the European and American banks will continue to kill each other while trying to maintain the pre-crisis situation which gave them unlimited central bank support. As for Euroland, they may have a very bad surprise. The fourth quarter 2011 marks the end of two key examples of the world before the crisis The implosive fusion of the fourth quarter will thus directly result from the encounter between two new realities that contradict two basic conditions of existence of the world before the crisis: . one, born in Europe, consists of now rejecting the idea that private financial operators, of which Wall Street and the City are the embodiment par excellence, are not fully responsible for the risks they take. Yet for decades, this was the prevailing idea that fueled the tremendous growth of the financial economy: "Heads I win, tails you bail me out". Even the existence of large Western banks and insurance companies has become intrinsically linked to this certainty. The balance sheets of major players on Wall Street and the City (and of many large Euroland and Japanese banks) are unable to withstand this tremendous paradigm shift (29). . the other, generated in the United States, is the proven end of the US engine of global growth (30) against a background of the country's complete political paralysis which, de facto, will end 2011 as Greece ended 2009: the world discovering little by little that the country has a debt it can no longer support, that its creditors are unwilling to lend, and its economy is unable to cope with significant austerity without plunging into a deep depression (31). In some ways, the analogy can be taken further: just as the EU and the banks, from 1982 to 2009, lent freely to Greece ... and without pressing for accounts, over the same period, the world has lent freely to the United States believing its leaders' promises about the state of the economy and the country's finances. And in both cases, the money has been wasted in real estate booms with no future, in extravagant crony politics (in the US cronyism is Wall Street, the oil industry, health service providers) and in unproductive military spending. And in both cases, everyone discovers that in a few quarters you can't fix decades of recklessness. The politico-financial « perfect storm » of November 2011 So, in November 2011 the United States will brace itself for a politico-financial "perfect storm" that will make the summer problems look like a slight sea breeze. The six elements of the future crisis have already come together (32): . the "super committee" (33) responsible for deciding budget cuts on which there was no agreement this summer will prove incapable of resolving the tensions between the two parties (34) . the automatic budget cuts required to be made in the absence of agreement will result in a major political crisis in Washington and increasing tensions, especially with the military and the recipients of social benefits. At the same time, this "automatic function" (a real abdication of decision-making authority by Congress and the United States Presidency) will generate major disturbances in the functioning of the state system. . the other major rating agencies will join S&P in downgrading the US credit rating and diversification out of US Treasury Bonds will accelerate, in the knowledge that the United States now depends primarily on short-term financing (35). . the inability of the Fed to do anything but talk and manipulate stock markets or gasoline prices in the United States (36), now makes any last-minute "rescue" impossible. . over the next three months the US public deficit will increase dramatically as tax revenues are now already in the process of collapsing under the impact of the relapse into recession (37). In other words the increased debt ceiling voted in a few weeks ago will be reached well before the November 2012 elections (38)... and this is information that will spread like wildfire in the fourth quarter of 2011 ... reinforcing all investors' fears to see the United States follow Euroland's example over Greece and force its creditors to take heavy losses. . Barack Obama's new plan in the fight against unemployment will have no significant effect. On the one hand, it's not up to the challenge and, for this reason, can't rally the country's energies; and on the other, it will be cut to pieces by the Republicans who will only keep the tax cuts... The only result of which will be to increase the country's debt even more (39). So for LEAP/E2020, it's a combination of all these elements at the end of 2011 that will trigger this major financial shock ... a kind of final shock thrusting the planet out of the world before the crisis for good. But the world after is still to be built because many futures are possible, beginning 2012. As Franck Biancheri anticipated in his book, the period 2012-2016 forms an historical crossroads. One must try not to mistake the path (40)! ---------- Notes: (1) For now, as we have said for several quarters, the media and financial hysteria surrounding the Greek crisis is primarily in the realm of propaganda and manipulation. To see this, it suffices to note that outside Greece, no Euroland citizen would realize that there is a crisis in Greece if the media didn't regularly make it the subject of their headlines. Whilst in the United States, the daily ravages of the crisis do not need media coverage to be felt severely by the tens of millions of Americans. (2) As it seeks to confuse and manipulate the perception of reality whilst, on the contrary, our work tries to reveal this same reality. (3) Every 3 or 4 months, we have a "puff" of Greek crisis/end of the Euro, which vanishes as quickly as it arrived when everyone ultimately finds that nothing happens other than the continuation of the tortuous Euroland decision-making process of and Greece's slow exit from its budgetary black hole". The triggers vary of course, because otherwise it wouldn't work with the public any more: one quarter we'll use "Greeks revolt against austerity" to explain that everything will go up in flames ... including the Euro (the sequence that leads from Athens to the whole of Euroland is always very vague of simplistic, but no matter because the journalists don't ask questions); the next quarter, like this summer for example, a stock market collapse is used to identify a culprit ... Greece ... a thousand times more important, of course, than events as insignificant as the United States entry into recession and the US credit rating downgrade! And so on. The Greek gods are definitely still alive and very powerful to get the world to tremble like this. (4) See this extract from GEAB N°51 (5) Sources: MarketWatch, 09/14/2011; New York Times, 09/13/2011; USAToday, 09/07/2011; La Tribune, 09/05/2011; Mish's, 08/29/2011; USAToday, 08/29/2011; CNBC, 06/17/2011 (6) That hasn't surprised GEAB readers, since in the GEAB N°49 of November 2010, we had anticipated "widespread policy paralysis and the USA's entry into austerity in 2011". (7) For relaxing on a serious subject, take a look at this rap clip of a very political theme "Raise the debt ceiling". Source: Telegraph, 07/29/2011 (8) Source: Telegraph, 08/31/2011 (9) So, adding private and public debt, the United Kingdom is the most indebted country in the world. Source: Arabian Money, 08/28/2011 (10) Humanitarian and charitable organizations in the country are currently struggling for their financial lives due to lack of donations and grants. Source: Guardian, 08/02/2011 (11) The two treat the news in more or less the same way. (12) Even Switzerland is "pegging" its currency to the Euro from now on - which should make the Eurosceptics think like this title of the Spiegel of 09/07/2011. (13) Imagine the state of the dollar or the Pound, if the media and experts devoted the same energy to describe and fantasize on all the United States' or the United Kingdom's problems. If, for example, one drew the same conclusions for Britain during the summer riots as those drawn for the really sensible Gre

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall a Little Over 2% on the Week Posted: 16 Sep 2011 07:13 AM PDT Gold fell almost 1% to as low as $1762.30 in Asia, but it then rallied back higher throughout most of trade in London and New York and ended near its late session high of $1821.44 with a gain of 1.86%. Silver surged to as high as $40.892 and ended with a gain of 3.02%.

JP Morgan SILVER Manipulators Exposed Posted: 16 Sep 2011 06:59 AM PDT From Eric King: Identities of people involved in the alleged JP Morgan conspiracy to manipulate the price of silver have been exposed, along with the mechanisms of the manipulation of silver. King World News was contacted two days ago by key people familiar with this situation. This was described by an individual out of London who is very familiar with the lawsuit as, "The biggest news in a long time because these are actual people who are coming out and naming names of individuals who were involved in this alleged conspiracy with JP Morgan to actively manipulate the price of silver. People may go to jail over this. JP Morgan has all barrels pointing at them as traders are named in this suit, including senior traders at JP Morgan." Robert Gottlieb, who is currently a Managing Director/Trader at JP Morgan and an alleged participant in the manipulation is brought up in the lawsuit. What is interesting about Mr. Gottlieb is that in February of 2008 he made the following statement, "If you take just 1-2% of hard asset pension fund money earmarked for commodities and put that into gold, you can project much higher prices in the future than even where we are today." The timing of the statement is so interesting because at the time Bear Stearns was massively short silver and the firm collapsed within weeks of his comments. Read more @ King World News

GLD: Buy That Dip Posted: 16 Sep 2011 06:40 AM PDT SafeHaven

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