Gold World News Flash |
- DMITRY ORLOV ~ 'Reinventing Collapse' Review
- The Gold Index Game
- We are on a gold standard now, even though it is not recognized
- Dangerous Fed Manipulation, Desperation, Propaganda & Gold
- In The News Today
- Doug’s Review of Dmitry Orlov’s ‘Reinventing Collapse’ and ‘The Five Stages of Collapse’
- Current Economic Collapse News -- News Brief
- Why Stock Markets May Be Lagging Indicators
- Silver - Not Ready For Prime Time
- JPMorgan Says "Buy Gold"
- Dangerous Fed Manipulation, Desperation, Propaganda & Gold
- Alasdair Macleod: Monetary inflation prospects
- TF Metals Report: Comex gold futures market is 'hopelessly broken'
- Guest Post: The Case For Investing In Gold
- Gold And Silver – Fed Taper? Never! Never, Never, Ever!
- Gold And Silver - Fed Taper? Never! Never, Never, Ever
- This Past Week in Gold
- Gold And Silver – Fed Taper? Never! Never, Never, Ever.
- No Taper E-Alchemy with the US Fed
- Recent Gold Price Rally A Sign of Strength?
| DMITRY ORLOV ~ 'Reinventing Collapse' Review Posted: 21 Sep 2013 10:47 PM PDT Doug's Review of Dmitry Orlov's 'Reinventing Collapse' and 'The Five Stages of Collapse' Dmitry Orlov's work has been a catalyst for getting a handle what is happening in the world today and... [[ This is a content summary only. Visit http://FinanceArmageddon.blogspot.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Posted: 21 Sep 2013 10:30 PM PDT by Jim Sinclair, JS Mineset:
The industry indices of the exchanges are decided upon by a committee of the exchange made up of members of that exchange. The proceedings of their discussions which impacts huge trading is sealed under secrecy in Canada. Secrecy that is from anyone but the members who are also members of the exchange. In some cases, trading members. That is the index game. The members of the exchange on the index committee decide on what companies are added to their gold index. The members of the exchange on the index committee decide on what companies are deleted from the gold index. The proceeding of these meetings are sealed under secrecy. |
| We are on a gold standard now, even though it is not recognized Posted: 21 Sep 2013 09:30 PM PDT by Max Keiser, Russia Today
In 1971 the US 'closed the gold window' starting an era of global fiat money reference pricing that has been unprecedented in history. Never has the world operated on the basis of no country having a currency tied to something with intrinsic value like Gold. The 'petro-dollar' – a US dollar exchange rate based on the deal struck between Saudi Arabia and America – for the US to buy their oil and for the Saudis to buy US dollars and bonds in return – started a period of oil companies (with the military machinery in their pocket) bullying the world into buying US dollars or getting cut off from oil and dollar supplies led to our current political situation with the US now involved in multiple wars in various oil dependent economies and their satellites – and this lulled many into believing that Gold no longer played a role, but recent events prove these assumptions wrong. |
| Dangerous Fed Manipulation, Desperation, Propaganda & Gold Posted: 21 Sep 2013 09:00 PM PDT from KingWorldNews:
Starting from its inception, the Fed influenced the economy by adjusting the interbank overnight lending rate and providing temporary liquidity for financial institutions. However, in the modern era of central banking (post 1971) the Fed has resorted to unprecedented and dangerous manipulations, which are increasing by the day. |
| Posted: 21 Sep 2013 08:06 PM PDT Jim Sinclair's Commentary QE to infinity defined as the US dollar in the low .70 USDX. U.S. disability rolls swell in a rough economy By Michael A. Fletcher, Published: September 20 MILLINOCKET, MAINE — The huge mills along the Penobscot River roared virtually nonstop for more than a century, turning the dense Maine forests into... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. |
| Doug’s Review of Dmitry Orlov’s ‘Reinventing Collapse’ and ‘The Five Stages of Collapse’ Posted: 21 Sep 2013 06:35 PM PDT from DougHamel.com: Dmitry Orlov’s work has been a catalyst for getting a handle what is happening in the world today and what may happen tomorrow. With his signature tongue in cheek humour, Dmitry takes his in depth personal experience of the USSR collapse and applies it to the USA and its familiar debt and death empire paradigm. I have to thank Dmitry for healing me of my delusion that politics can change anything when really politicians just a bunch of ‘bad actors’. I am reviewing Dmitry’s two books Reinventing Collapse and The Five stages of Collapse. I hope you enjoy the reviews and have a look at Dmitry’s work. |
| Current Economic Collapse News -- News Brief Posted: 21 Sep 2013 06:19 PM PDT Current Economic Collapse News -- News Brief -- Episode 169 In this news brief we will discuss the latest news on the economic collapse. We look to see if things are really that different. The... [[ This is a content summary only. Visit http://FinanceArmageddon.blogspot.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Why Stock Markets May Be Lagging Indicators Posted: 21 Sep 2013 05:50 PM PDT Today Asia Confidential could talk about previously warning of Ben Bernanke tapering the taper and how U.S. government bonds and gold would rally as a consequence. Stroking the ego is a wonderful thing, and the financial world does it well, but it's not my thing. Alternatively, I could talk of what's going to happen to markets from here - but you can find plenty of that elsewhere. No, instead, I'd like to delve deeper because there are some nagging questions from the past week's events. Why do stock markets remain at or near record-highs yet it doesn't feel like that to most people? Why the seemingly large gap between stock market and economic performance? Why are markets so dependent on the words of central bankers with dubious track records? And why did almost all financial analysts and pundits get it so wrong on the taper? There are lots of seemingly simple answers to these questions. Central bank money printing, growing government debt loads, conspiracies between central banks and financiers, to name a few. While they have a place, none of them appear to provide a comprehensive explanation as to what's driving markets right now. What does then, you ask? Well, the growing study of socionomics may give us some clues. Socionomics suggests social mood - what happens in society as expressed in the arts, music, mores, fashion and so on - drives stock markets which in turn drives economies. Put another way, what happens in society is a lead indicator for market price action. This theory turns conventional wisdom - purporting that economies drive stock markets and social mood - on its head. Think about it. The biggest market crisis of late has been in India. For several years prior to the crisis, there were countless high-profile corruption cases, vast and growing movements against wealth inequality and several disturbing rape cases which caught the world's attention. Arguably, they reflected deepening divisions within society. That all happened prior to the crash in India's stock, bond and currency markets. Socionomics suggests that wasn't an accident. And turn to today. In the U.S., there was the Tea Party movement post-crisis, Occupy Wall Street, then the fall of social icons such as Lance Armstrong, and now a spate of mass murders. In Europe, societal divisions have been clear yet have calmed at the least for the moment. In Asia, you have deep unease in Australia despite a healthy economy vis-à-vis the rest of the world, which led to the downfall of the government in the recent election. And then there's the Middle East, where the push for regime change grows and a broader war seems more likely than not. Do these things signal a darker turn for markets in the not-too-distant future? I'm not sure. But perhaps it's worth your while paying as much attention to what's happening around you as to the words of the world's central bankers. What the heck is socionomics? The assumption behind these discussions is that economies drives stock markets, or conversely that stock markets lead economies. These things are drilled into MBA students and throughout the financial profession. Socionomics says these discussion miss a key element. In fact, that the cause and effect implied is all wrong. The theory says that social mood drives human action, which drives stock markets, economies and much more. If people are feeling increasingly optimistic, they'll increase their productivity, which results in improved GDP. They'll also be more inclined to invest money in risk assets such as stock markets. In other words, social mood is a lead indicator for market risk appetite. Fine, you might say - but how do you determine social mood? You can quantify earnings, economic performance and subsequent stock market performance, but how about social mood? Well there are socionomics followers who model trends in finance, macroeconomics, demographics, entertainment, fashion and other areas, to quantify such things. The most famous follower is its inventor: Robert Prechter. This guy is better known as the leading proponent of the Elliot Wave Principle. Prechter suggests the Elliot Wave can also be applied to patterns of social mood. Problems with common market indicators For instance, the theory that improving economies lead to better stock markets. This is conventional wisdom which every major academic study has contradicted. Every U.S. recession bar one over the past century has followed a downturn in stock markets. A lead indicator for stock markets, the economy is not. How about demographics, then? There are many proponents of demographics driving stock markets. Best selling author, Harry Dent, is the most famous even though he's been far more wrong than right on his market calls. Trust me, he's made more money from his books than the market. Anyhow, it's true that demographics in the U.S. line up well with stock market patterns since 1950. But before that, the data doesn't correlate well at all and the theory is questionable as a consequence. How about war and peace then? Surely, war is bad for stock markets and peace is good? Not necessarily. The evidence is contradictory on this point. The Revolutionary War occurred as stock markets fell in the UK. During World War One, stock markets rose and then fall. World War Two saw the opposite happen. There may be an alternative explanation for some of the above though. As mentioned earlier, an improved social mood can drive increased productivity and economic expansion. It can also lead to increased birth rates ie. happy people make for happy bedrooms. And of course, war and peace are largely determined by societal tensions rising or receding. Back to the present But the bulls struggle to explain why the rising stock market is a sustainable trend. Improving earnings? Improving economies? There's little evidence of either. Meanwhile, the bears struggle to explain the reasons behind printed money making its way into stock markets rather than under a proverbial mattress. It seems to this author that deepening global tensions may have something to say about the apparent contradictions in today's markets. And to point us to what may lay ahead. In the U.S., you've had broad-based lynching of bankers and oil companies since the crisis. The rise of the Tea Party and Occupy Wall Street Movements. The fall of sporting icons such as Tiger Woods and Lance Armstrong. Horror movies have been making a comeback. Not to mention the increasing incidences of mass murders of late. In Europe, you've had extraordinary youth unemployment, rising social tensions, overthrow of governments, political divisions threatening to undo the EU, the likes of Cyprus stealing bank deposits and the list goes on. And in our neighbourhood of Asia, I've mentioned the depressing social mood in India, well before the recent currency crisis. In China, disgust at Communist Party corruption and the ostentatious display of wealth by party officials and businessmen has been apparent for several years. And it may explain the terrible performance of China's stock market, still down more than 60% from the 2007 peak. In Australia, a rising stock market, still strong economy particularly when compared to other developed world countries and a rebound in already ludicrously priced housing still can't satisfy the locals. Consumer and business confidence remains low, evidenced by the Labor government being unceremoniously dumped in a recent election. And let's not forget the Middle East, where several authoritarian regimes in power for decades have made way for comparatively weak military and civilian rule. And the threat of civil wars or worse, seems a matter of when, not if. If socionomics is right, these things point to an uncertain future for markets. That the phases of increasing divisions and conflict since 2008 portend something worse ahead. Extrapolating socionomics to the past week's events, what explains the hero-worship of Ben Bernanke and his cohort of central bankers? I'm not certain but my guess is that public disenchantment and confusion would correlate pretty well with historical episodes of hero-worship. It may also go some way to explaining the herd-like behaviour of financial analysts and commentators, almost all of whom called the taper, or non-taper, incorrectly. This kind of hero worship has a habit of turning around pretty quickly though too. In sum, don't take the stock market at face value. Or central bankers, for that matter. Look around you and observe key social trends. What you observe could well be a precursor to future market action. This post was originally published at Asia Confidential: http://asiaconf.com/2013/09/22/markets-as-lagging-indicators/ |
| Silver - Not Ready For Prime Time Posted: 21 Sep 2013 05:31 PM PDT There are two distinct advantages derived from reading charts. They are all based on factual information, in the form of executed trades, and they are a short-cut for reading about all the exogenous factors, [mostly fundamental], that ... Read More...  |
| Posted: 21 Sep 2013 04:00 PM PDT The FOMC shocked markets by deciding not to slow its large-scale asset purchase program, after all the signals it had sent out in previous months that it would do so. While increasing policy risk, JPMorgan notes, this puts the asset-reflation trades back on the table. In their view, the main driver of gold's performance over the past five years has been QE. As QE continued and inflation expectations remained subdued, the demand for an inflation hedge subsided, ETF positions were unwound and gold prices fell. However, JPM now believes, as a result of the Fed's volte-face on tapering, uncertainty about future inflation may pick up and suggest a long position in gold. Of course, the question is - are they buying or is this a last ditch effort to drain what little remaining gold they have in their vault to their hapless clients? JPMorgan On Gold:
Policy Risk Up. ... In one dramatic move, Mr. Bernanke has reversed this steady march to a rule-based policy and has brought discretion and flexibility back. The Fed may argue it never really gave up discretion, but we think the market nevertheless saw increased rigidity and thus a greater risk of policy errors. By bringing back discretion, the economy broadly, rather than just unemployment, has retaken precedence. This has reduced economic uncertainty. To use popular terms, the Bernanke Put and asset reflation are back, while the end-of-easy money trade needs to await better economic data.
Some other relative-value charts for gold... The Debt-Ceiling appears to have an uncanny relationship with the precious metal - the relationship should be clear why an ever-increasing debt load for the world's reserve currency would require a rising gold price to keep pace with its endgame-implying collapse...
And the world's central banks are printing - not just the Fed - and the world's central banks know that they need some anchor of value for their balance sheets. The ratio of global central bank balance sheets to the price of gold (i.e. how much gold is required to support the balance sheets of the world's money-printers) appears to be at an extreme.
In other words, for the 'stable' relationship between central bank balance sheets and gold to recouple, Gold would nee to be back to around $1800 an ounce; but given the Fed's U-turn and no sign of stopping at the BoJ (or PBOC for that matter) and we suspect Draghi about to try to unleash a collateral-free LTRO3, the price of gold will have to be considerably higher before the world's central banks are 'backed' again.
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| Dangerous Fed Manipulation, Desperation, Propaganda & Gold Posted: 21 Sep 2013 02:11 PM PDT  On the heels of a disastrous week for the Federal Reserve, today one of the top economists in the world discussed the Fed's increasing manipulation, desperation, use of propaganda in mainstream media, and its unprecedented and dangerous manipulations in major markets. He also discussed what all of this means for gold and silver. Michael Pento, who is founder of Pento Portfolio Strategies, wrote the following exclusive piece for KWN. This posting includes an audio/video/photo media file: Download Now |
| Alasdair Macleod: Monetary inflation prospects Posted: 21 Sep 2013 11:57 AM PDT 2:45p ET Saturday, September 21, 2013 Dear Friend of GATA and Gold: In his commentary today GoldMoney research director Alasdair Macleod explains his proposal for a new measure of money, to be called Fiat Money Quantity. By this measure, Macleod writes, the U.S. dollar is already hyperinflating. His commentary is headlined "Monetary Inflation Prospects" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/en-gb/news-and-analysis/news-and-analysis-archi... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear. All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics. All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay. Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery. All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins. Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653. Join GATA here: Gold Investment Symposium 2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: 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: To contribute to GATA, please visit: |
| TF Metals Report: Comex gold futures market is 'hopelessly broken' Posted: 21 Sep 2013 11:30 AM PDT 2:30p ET Saturday, September 21, 2013 Dear Friend of GATA and Gold: The New York Commodity Exchange's gold futures market is "hopelessly broken," the playground of market-manipulating bullion banks that can move the price up and down at will to fleece naive speculators and investors as was done last week, Turd Ferguson of the TF Metals Report writes today. Ferguson adds that the bullion banks covered many short positions in Comex gold in the week prior to the Federal Reserve's surprising retreat from "tapering" its bond purchases. His commentary is headlined "Hopelessly Broken" and it's posted at the TF Metals Report's Internet site here: http://www.tfmetalsreport.com/blog/5080/hopelessly-broken CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Gold Investment Symposium 2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: 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: To contribute to GATA, please visit: |
| Guest Post: The Case For Investing In Gold Posted: 21 Sep 2013 09:43 AM PDT Submitted by Tomas Salamanca of the Ludwig von Mises Institute of Canada, The last two years have been disappointing for gold investors and what happened this week to the yellow metal epitomized the frustrating price movement. After the Fed startled the markets by announcing that it was going to continue with its current rate of bond purchases, gold shot up from just under $1300 an ounce to $1370. But late Thursday, it started to back off somewhat from those gains before falling sharply on Friday. It ended the week at $1325, virtually unchanged from the prior week. How can that possibly be? It has, after all, become more evident that the Fed is politically hindered from turning off the money spigot. If gold can't stay elevated on that development, what hope is there going forward that it will resume its decade-long uptrend and eventually overtake the 2011 high of $1900 per ounce? And so why bother investing in gold? Yet the case for investing in gold does not depend on the market's reaction to the Fed's latest doings. For a trader in gold — someone looking to profit from taking a position over a period of days or weeks — it certainly would. An investor, by contrast, has a longer time horizon — years, if not decades. For the investor, whether or not to buy gold necessarily entails forming a judgement about the larger and more enduring forces that impinge on its price. Is our politico-economic system, in other words, congenitally disposed to the cheapening of the currency? Those who invest in gold basically answer yes. And they have very solid grounds for that stance. In the democratic polities that prevail today in the developed world, politicians have very strong incentives to run budget deficits. For the way to maximize votes is to spend money on benefits for the public and then to simultaneously minimize the taxes levied to fund those benefits. Propelling this dynamic along is that the economies of developed nations have liquid bond markets in which government debt securities, whose safety can be believably affirmed by the state's power to tax, are eagerly sought by risk-averse investors. In this way, the bond market greatly relaxes budgetary constraints on politicians, being equivalent to a payday loan provider that ensnares a spendthrift individual into amassing a huge debt. When this debt becomes unsustainable, and the bond market finally acknowledges the mess it enabled, politicians must decide between imposing fiscal austerity or printing money to pay off the debt. The latter is the politically more attractive option, especially as the resulting inflation can be blamed on private industry. The recognition of this inflationary tendency built into our politico-economic framework is what constitutes the case for investing in gold. Nor is this all just idle theorizing. The logic of a democratic inflationary bias is well illustrated by the historical experience since August 1971. This is when the last remnants of an external constraint on money supply creation was done away with by President Nixon's closing of the gold window. Before then, the U.S. government stood ready (at least vis-a-vis other central banks) to exchange dollars for gold at $35 per ounce. How would someone, aware of the long-term inflationary threat that Nixon's decision posed, have done had they invested in gold at the time and held it until now? The answer is that they would have generated an 8.7% annualized rate of return. Compare that to investing in stocks. Let's say you invested in the S&P 500 index over the same time frame. Now one big difference between investing in gold and stocks is that the latter pay dividends. So to make our comparative test of gold even stronger, let's assume one reinvested the dividends in the S&P 500. How much would such an investment in the S&P 500 have returned? The answer is 10.2%. Yes, that's 1.5% more than gold, but with shares one is actually betting on a group of private companies' ability to generate profits. With gold, one is simply looking to preserve purchasing power over goods and services. To have only sacrificed 1.5% for this more modest aim has arguably been a good deal. Or let's pit gold against government bonds. What we are comparing here is actually closer. Like gold, government bonds do not involve a play on future company profitability. Their yield is supposed to cover the time value of money as well as compensate for expected inflation. So how would an investment in 10 year US treasury securities, with a reinvestment of their coupon interest payments, have performed from 1971 until now? The annualized rate of return was 7%. That's 1.7% less than holding gold. Over the past forty two years, one would have been better off holding what Keynes called the barbarous relic than what are commonly described as the safest securities in the world. Unless there is a tectonic change in our politico-economic structure — such as a return to a hard money standard — it's hard to see how this will change. |
| Gold And Silver – Fed Taper? Never! Never, Never, Ever! Posted: 21 Sep 2013 09:36 AM PDT The proverbial handwriting has been on the wall for quite some time. Lying Ben Bernocchio just sealed the fate of the already doomed fiat Federal Reserve Note, aka the "dollar," along with the financial well-being of most unsuspecting Americans who will be unprepared for what is going to happen, at some point and with certainty. Collapse. |
| Gold And Silver - Fed Taper? Never! Never, Never, Ever Posted: 21 Sep 2013 07:27 AM PDT The proverbial handwriting has been on the wall for quite some time. Lying Ben Bernocchio just sealed the fate of the already doomed fiat Federal Reserve Note, aka the "dollar," along with the financial well-being of most unsuspecting ... Read More...  |
| Posted: 21 Sep 2013 06:47 AM PDT Summary: Long term - on major sell signal since Mar 2012. Short term - on sell signals. Gold sector cycle - down as of 9/13. Read More...  |
| Gold And Silver – Fed Taper? Never! Never, Never, Ever. Posted: 21 Sep 2013 04:49 AM PDT The proverbial handwriting has been on the wall for quite some time. Lying Ben Bernocchio just sealed the fate of the already doomed fiat Federal Reserve Note, aka the "dollar," along with the financial well-being of most unsuspecting Americans who will be unprepared for what is going to happen, at some point and with certainty. Collapse. The Fed announcement not to taper was a "surprise" to all mainstream media talking heads[less], who must tow the Party line or join the growing millions of other Americans out of a job. Without the faux fiat injections into the stock market, it would collapse, as it inevitably will, anyway. Those in that market should be prepared for the worst for the worst will happen. If the Fed were to taper, it would immediately burst the largest financial bubble ever created by central bankers, all under the aegis of abetting Western governments. Rather than burst the bubble and be held accountable, the Fed will keep feeding the financial tapeworm until the host Western world is utterly consumed. How many companies are there actually showing earnings? It must be closer to none than to 100. Yet, the stock market made new all time highs this past week. With zero percent interest rates, all older savers dependent upon interest returns during their retirement years have none. They are, and have been getting financially screwed, while bankers have been handsomely rewarded with huge bonuses. No outrage, however. All pension funds are under the same duress. The ultimate victim[s] is all of America as Ben and the Boyz steal what remaining "wealth" is available through their fiat Ponzi scheme, in place ever since the Federal Reserve Act of 23 December 1913. We are all trapped in this ultimate Weimar-type bubble created by central bankers using exactly the same banking system in place under the Weimar Republic. Details are of no consequence because they have been known for decades and ignored all throughout. Who are some the beneficiaries of all this future trauma and trouble? Those who own and personally hold physical gold and silver. No paper promises, which are ultimately IOUs, and when push comes to shove, which it surely will, good luck trying to collect on them. If the M F Global theft does not resonate with any paper holders, then nothing will. Do not believe that the Fed will taper. In all likelihood, the Fed will increase, not taper. When you see that happen, there is no more cover for all the lies being sold in America. You have to know that when the ultimate central planner player, Larry Summers, opts out of the job of his life, it tells you that the replacement for Lying Ben is being set up to take the fall. All Western banks are insolvent, all Western governments are insolvent, and almost all of the Western population remains ignorant. The Nobel Peace Prize winner has been pushing hard for starting another war. Who stepped in to stop war in Syria, and most likely triggering a greater war conflagration? Putin, of so-called "Evil" Russia, [in the minds of too many Americans unable to think for themselves]. It is never about what the government-controlled media wants Americans to "think." Why does Obomba want war? To save a few hundred Syrians from chemical warfare, the same US renown for using Agent Orange in Viet Nam, among chemical use in other wars, as well? It is not about saving Syrians. It is about preventing Russia from building a natural gas pipeline through Syria. Once that happens, and it will, the United States becomes even more irrelevant on the world stage than it already is. With a natural gas pipeline, Russia controls the energy Europe needs to stay warm during the cold winters. Why do you think Britain all of a sudden backed off from backing Obomba from bombing Syria? The United States has slipped into third world conditions already, as the country continues to decline. But not to worry Americans, the debt ceiling will be raised once again as the added debt will eventually raze the country even more. The war-like US president was Put-in his place by the rest of the world, tired of this country starting wars in the Middle East, and tired of the US exporting its toxic Treasury Bonds to the rest of the world. No one else want to buy US bonds. Despite Lying Ben testify under oath in front of [a puppet] Congress that the Fed would not monetize the US debt, that is exactly what he has been doing. The Fed is the only buyer left willing to buy US-issued debt. The Ponzi bubble is bigger than most can imagine. What Western central planners have been doing is suppressing gold and silver in order to keep their sorry lives alive. In the process, the destruction of people's financial well- being is unabated. Look at Greece. Look at Cyprus, Ireland, Spain. India is now under the fiat-gun and suffering. All of these countries are but symptoms of unchecked, forced, government-issued fiat debt. If you want to know why the fundamentals and unprecedented demand for gold and silver has failed to follow the natural law of supply and demand, it is because both have been unnaturally treated by central bankers. The metals are anathema to the issuance of paper fiat, and competition must be eliminated, at all costs. The world of central bankers is bursting at the seams as more and more people are unwilling to bow to the pressures of oppressive governments. This is why the likes of Julian Assange, Edward Snowden and all other whistleblowers are being tracked down like animals, to keep the truth from the governed. From Leonard Cohen's Anthem, "There is a crack in everything. That's how the light gets in." The greatest antidote to government-issued fiat has always been gold, and silver to a lesser extent but becoming as important a financial safe harbor. Last week, we wrote about reliance on Fundamentals vs Charts, [http://bit.ly/1eQNE4P], and it was stated that all the very glowing fundamental news has not produced the positive results almost all in the PMs community have been anticipating. The Charts clearly told the opposite "story." [Computer issues precluded some from having last week's comments available, so use the link if you missed it.] The charts speak. [Central planners are too dumb to know charts shine a light on them]. Gold and silver may ultimately head higher, [and higher and higher], but for now, charts say not yet. Still NMT, [Needs More Time]. We will always advocate the continual buying and holding of the physical metal, [silver, too], for the above opinion should be akin to Paul Revere's ride through every Middlesex village and farm, alerting everyone that the British were coming, and the American Revolution got underway. "The Central Bankers are here!" Buy gold and silver! As long as the paper futures market remains "viable," at least until the COMEX acknowledges there is no more gold and silver available for delivery, as will be the case, we use them as a "looking-glass" for immediate price determination. The weekly trend is down. There remains bearish spacing and no indication of a change in this status. A 50% correction of the last swing low to swing high is 1297, and price has yet to close under that level. It is just a guide and not an absolute, and it tells us of relative strength or weakness should it hold or fail to hold. The chart comments are self-explanatory. Where it says, "Charts do not lie," you can see a small range bar, [lack of demand ending the rally], with a poor close, and it occurred at the late May, early June last swing high, a potential future resistance, as it turned out to be. A clinical read of the chart would say to be a seller. A PM mentality and awareness of the fiat failings makes it a harder choice. We are all subject to subjective beliefs which are sometimes at odds with the reality of what factual information a chart conveys. We were not sellers, but it goes to show how reliable this source is. As a then read, three bars ago, intra day activity signaled a buy, prior to the "No Taper" tale, and price shot up relentlessly for the balance of the day. Next day was a small range bar, not unlike the one at the end of August, that signaled a sell, and we opted to sell out longs for that reason. Luck often happens when one is prepared. Half the position was repurchased at 1352 on Friday, at what looked like a potential stopping area that was not, and price eventually sold lower. Unless the position is stopped out for a loss, we will look to add to it, if market activity so determines. The Wednesday high volume bar is more likely short-covering, as opposed to new demand. The weekly gap was erased on the gold chart, but it remains in play in silver. After the previous week's wide range sell off, last week's low was relatively minimal, and that could be an indication of buyers meeting the effort of sellers. Next week's activity will clarify the picture more. The larger box captures current support/resistance. Buyers have a slight edge over sellers, but the onus is on buyers to make a statement, by moving price higher, or sellers will keep what marginal control they have, for now. It is not shown on the chart, but we also bought silver futures near the low, Wednesday, opted to sell half the position, next day. |
| No Taper E-Alchemy with the US Fed Posted: 21 Sep 2013 02:10 AM PDT Imagine the US Fed had a technology called the 'printing press'... SO LIKE ME, the world and its stockbroker thought the US Fed would start trimming QE money-printing this Wednesday. US Treasury bonds were down, stocks were soft, and gold and silver were long set for a cut to the money-creation scheme, too. The Fed seemed determined. Ben Bernanke said as much in June. But no. |
| Recent Gold Price Rally A Sign of Strength? Posted: 21 Sep 2013 01:56 AM PDT According to Reuters, gold is often seen as an inflation hedge (while it is really a system hedge in our opinion) and this safe-haven investment, has fallen nearly 20% this year on fears of an end to easy central bank money, which had propelled it to record highs in 2011. On Wednesday, after the Fed said it would stick to its stimulus plan for now, the yellow metal gained more than 4%, leading the rally in commodities. Yesterday, gold rose to a new one-week high and extended the previous session's rally, lifted by technical buying and short-covering. |
Dear CIGAs,
If you believe that gold no longer plays a role, think again. In effect, if you know what to look for, the world is on a gold standard now.
The President of Europe's central bank said back in July of 2012 that the bank would fight rising borrowing costs by doing "whatever it takes" to ensure sovereign bond yields do not spiral out of control. This past week Mr. Bernanke took a page from Mario Draghi's playbook and tacitly indicated that the Fed will also now promise to keep long-term interest rates from rising by any means necessary.
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