Gold World News Flash |
- Monetary Metals Supply and Demand Report 19 July, 2015
- Gold and Silver Flash Crash - Thousands of Futures Contracts Dumped at Market Open
- Shanghai Gold Exchange Sees 61.8 Tonnes Withdrawn In Eighth Largest Week Ever
- Gold & Silver Being Wiped From American’s Memories
- Newscast E3 – Gold/Silver News
- Governments Worldwide Will Crash the First Week of October … According to 2 Financial Forecasters
- Analyzing PBOC Official Gold Reserves Increment
- Thousands of Gold and Silver Futures Contracts Dumped at Market Open
- Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump
- No Silver Shortage, Huh? …Now QSB Suspends Sales As DEMAND Crushes Supply
- Is Australia The Next Greece?
- Chinese Stocks Drop'n'Pop After Officials Confirm "Stock Market Rout Stopped By Timely Measures"
- Lies, Damned Lies, & Inflation Statistics
- How The Fed And Wall Street Are Eating Their Seed Corn
- Retail Silver Premiums - The Candle Blowing in the Wind
- Retail Silver Premiums - The Candle Blowing in the Wind
- China official Gold holdings ‘just a little’ understated
- Now that they're being destroyed, even respectable people can admit that GATA is right
- France's Hollande proposes creation of euro-zone government
- Koos Jansen: China likely has more gold than announced but isn't ready to rock the world
- Collapse of the Global Banking System Caused by Central Banks!
| Monetary Metals Supply and Demand Report 19 July, 2015 Posted: 19 Jul 2015 11:48 PM PDT The prices of the monetary metals cascaded downward this week, and the ratio of the gold price to the silver price rose accordingly. Many analysts and speculators are puzzled. With everything going on in the world, gold should go up. After all, China released its new gold holdings and the banking system in parts of the world (e.g. Greece) is a mess, and many central banks are printing money, etc. We don't know if China's published number (1658 tonnes, up from 1054 in April 2009) is true or not. We don't care to speculate, as some have, about this topic (though since we're linking the article, we want to point out that the Chinese economy is not bigger than the US economy, unless one adjusts the measurement). We do know that credit stresses are mounting, and it's not just Greece. There are signs of problems all over the world, including in China. It is important to keep in mind how credit stress works. Let's compare and contrast two players, we'll call them Beavis and Butthead. Beavis owns gold. He is not happy about the falling price. However, being unleveraged, he can think about it at his leisure. He may decide to sell or to keep it, but the point is that his hand is not forced and he is under no pressure. Many readers of this Report may be in this position (we hope). Butthead has borrowed to buy assets, including gold. With each drop in price, the pressure mounts. He has to look at his leverage ratio—and so does his bank. If he gets a margin call, then his consideration occurs under circumstances that are anything but leisure. Of all his assets, he may choose to dump gold because its price is dropping. This is appropriate for two reasons. One, he hopes to cut losses and hold winners such as stocks. Two, his leverage may be tied to gold specifically, and not to his whole portfolio. In any case, it leads to the situation we have now. Even gold's biggest fans—those who expect the biggest profits from a rising gold price—are puzzled. At best. And of course many turn to conspiracy theories about who is whacking gold, and what the motive may be (regardless, we have repeatedly documented that the alleged gold whacking cabal does not have the means). So here we are. Gold closed the week, broken down, below $1140. Silver is well under $15. Our view is that breakouts and breakdowns cannot be determined from price charts. We want to know the fundamentals of supply and demand. If the price drops based on heavy selling of metal—as has happened in silver since we began publicly documenting it 2013—then that's a fundamental move. We do not predict that fundamental moves should just causelessly reverse themselves, for the price to recover its previous high. On the other hand, if the price drops based on selling of futures by leveraged speculators, that's a different story. Then we expect the price is likely to rise. This is because buyers of metal were already hungry at How do we measure this balance, this dynamic of changing equilibria in the futures and metal markets? Based on our theory of carry and decarry arbitrage, and using our proprietary model, we analyze the spreads between the spot and futures markets. This is the basis (pun intended) of our Supply and Demand Report. Read on, for the only accurate picture of the supply and demand conditions in the gold and silver markets, based on the basis and cobasis. First, here is the graph of the metals' prices. The Prices of Gold and Silver
We are interested in the changing equilibrium created when some market participants are accumulating hoards and others are dishoarding. Of course, what makes it exciting is that speculators can (temporarily) exaggerate or fight against the trend. The speculators are often acting on rumors, technical analysis, or partial data about flows into or out of one corner of the market. That kind of information can't tell them whether the globe, on net, is hoarding or dishoarding. One could point out that gold does not, on net, go into or out of anything. Yes, that is true. But it can come out of hoards and into carry trades. That is what we study. The gold basis tells us about this dynamic. Conventional techniques for analyzing supply and demand are inapplicable to gold and silver, because the monetary metals have such high inventories. In normal commodities, inventories divided by annual production (stocks to flows) can be measured in months. The world just does not keep much inventory in wheat or oil. With gold and silver, stocks to flows is measured in decades. Every ounce of those massive stockpiles is potential supply. Everyone on the planet is potential demand. At the right price, and under the right conditions. Looking at incremental changes in mine output or electronic manufacturing is not helpful to predict the future prices of the metals. For an introduction and guide to our concepts and theory, click here. Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio. The ratio moved up 2.2% this week. The Ratio of the Gold Price to the Silver Price
For each metal, we will look at a graph of the basis and cobasis overlaid with the price of the dollar in terms of the respective metal. It will make it easier to provide brief commentary. The dollar will be represented in green, the basis in blue and cobasis in red. Here is the gold graph. The Gold Basis and Cobasis and the Dollar Price
The fact is that the price of gold dropped another $29 (i.e. the price of the dollar went up to another 0.67mg gold). The question is: why? This graph shows a glaring picture of the action. Notice the red and green lines? Red is the cobasis (i.e. gold scarcity). Green is the price of the dollar (inverse to the conventional price of gold, measured in dollars). When the red and green lines move together like this, it means the price change is caused by speculators in the futures markets, who are repositioning. In this case, obviously, they're selling. It is of note that the fundamental price of gold moved up $5 this week. It's now $65 over the market price. Is this a good time to bet on gold? While other events could continue to dominate the fundamentals (temporarily), we can think of worse times for this trade. Now let's look at silver. The Silver Basis and Cobasis and the Dollar Price
The silver price dropped even more as a percentage, down -$0.71. As with gold, look at the correlation of the scarcity measure and the dollar price. Silver, too, saw more selling of futures than of metal. However, the silver cobasis didn't keep up with the gold cobasis. Our calculated fundamental price dropped from last week. It's still above the market price, but only 20 cents or so. We don't normally comment on the market open, as we go to print Sunday evening (sometimes we wrap up this Report before the market opens). However, today it is noteworthy that the gold price has had a flash crash, hitting a spike low of $1073 (not a typo!) before settling at around $1106. The silver price did not flash crash, but it did drop, and now sits at $14.55. There may be interesting buying opportunities coming up. Especially if you're not leveraged, not subject to margin calls, and have a longer time horizon than Butthead.
© 2015 Monetary Metals |
| Gold and Silver Flash Crash - Thousands of Futures Contracts Dumped at Market Open Posted: 19 Jul 2015 10:27 PM PDT This was a little enthusiastic even by current standards, or lack thereof. About seven thousand gold futures contracts, representing about 21.8 tonnes of paper gold, were dumped at market in one minute driving the price down to $1,080. |
| Shanghai Gold Exchange Sees 61.8 Tonnes Withdrawn In Eighth Largest Week Ever Posted: 19 Jul 2015 10:00 PM PDT from Jesse's Café Américain:
Bernard M. Baruch Asia continues to add significant amounts of gold bullion to their wealth reserves. Wall Street and its sycophants would like us to consider gold to be just ‘a pet rock’ or ‘like trading sardines.’ And yet central banks have turned to be net buyers, and Asia and the Mideast continue to buy bullion in record amounts. Talk to the Chan. One of the few coherent things Alan Greenspan said was that statists of all persuasions, both right and left, have ‘an almost hysterical antagonism towards gold.’ This is because gold resists their will to power over others. |
| Gold & Silver Being Wiped From American’s Memories Posted: 19 Jul 2015 09:30 PM PDT by Jeff Berwick, Dollar Vigilante:
This recent 'man on the street' interview with local Kalifornians offering them a chocolate bar or a 10 ounce silver bar makes the point for us. Of course, a 10 ounce silver bar is worth about $150 today. The chocolate bar, about $1. And that's completely aside from the fact that we recommend not taking food products from random people on the street and eating them! These same people, if asked, would probably say they live in the Land of the Free because of the constitution… but have no idea that it says in the constitution that "no state may make anything but gold and silver coin a tender in payment of debts." |
| Newscast E3 – Gold/Silver News Posted: 19 Jul 2015 09:00 PM PDT from Goldbrokercom: |
| Governments Worldwide Will Crash the First Week of October … According to 2 Financial Forecasters Posted: 19 Jul 2015 08:49 PM PDT Update: Please see correction at the end. Two well-known financial forecasters claim that virtually all governments worldwide will be hit with a gigantic economic crisis in the first week of October 2015.  Martin Armstrong (Click for Larger Image)
Martin Armstrong is a controversial market analyst who correctly predicted the 1987 crash, the top of the Japanese market, and many other market events … more or less to the day. Many market timers think that Armstrong is one of the very best. (On the other hand, he was jailed for 11 years on allegations of contempt, fraud and an alleged Ponzi scheme. Armstrong’s supporters say the government jailed him on trumped-up charges as a way to try to pressure him into handing over his forecasting program). Armstrong has predicted for years that governments worldwide would melt down in a crisis of insolvency and lack of trust starting this October. Specifically, Armstrong predicts that a major cycle will turn on October 1, 2015, shifting investors’ trust from the public sector and governments to the private sector. (Armstrong is not saying that a crash will occur on October 1st ... but that it will be a major turning point which sets us up for a crash within a couple of months) Unlike other bears who predict that the stock market is about to collapse, Armstrong predicts that huge sums of capital will flow from bonds and the Euro into American stocks. So he predicts a huge bull market in U.S. stocks.  Larry Edelson (Click for Larger Image)
Edelson is another long-time student of cycle theory. (Edelson – a big fan Armstrong – has also studied decades of data from the Foundation for the Study of Cycles.) Edelson is predicting the biggest financial crisis in world history – including a collapse of government solvency – will start on October 7, 2015 – the same week as Armstrong’s prediction – when the European Union breaks up. Edelson also thinks that huge sums of investment will flow from the Eurozone to America, driving up U.S. stocks (unlike Armstrong, Edelson thinks U.S. bonds will also benefit). He thinks that Japan will be the next domino to fall ... and that Japan's default will also drive investments into the U.S. as a safe haven. In other words, both Armstrong and Edelson think that - as the best looking horse in the glue factory - the U.S. stock market will skyrocket as others fall apart. But to be clear, both believe that the domino collapse will eventually hit the U.S., and America will end up defaulting on its debts - and falling into financial crisis - as well. Are Armstrong and Edelson right or wrong? We don’t have long to wait to test their very public predictions … Here's more on Armstrong and Edelson. Correction: Several people have pointed out that Armstrong is not predicting that the crisis will be felt on October 1, 2015. Rather, he's forecasting that October 1st is a major turning point, but that the governmental financial crisis may not be felt until some months later. |
| Analyzing PBOC Official Gold Reserves Increment Posted: 19 Jul 2015 08:30 PM PDT from Perth Mint:
Finally last Friday the People's Bank Of China (PBOC) updated its official gold reserves, from 1,054 tonnes, a figure reported since 2009, to 1,658 tonnes. Most gold analysts expected a number substantially higher than what was just disclosed. In this post we'll analyze the 1,658 tonnes figure. Before diving into the analysis, I like to share that I think it's possible the PBOC hasn't been completely honest by stating their gold reserves have grown by only 604 tonnes since 2009. I think in reality they have a little more than 1,658 tonnes, but let's discuss that later on. In my analysis, I always try to start with official data and work my way from there, instead of start with speculative data and work backwards. It's very easy in the gold space to rebut all official data, mainly because there is so much speculation. Therefor, I would like to start with the figure just disclosed, then I'll try to answer, why 1,658 tonnes? |
| Thousands of Gold and Silver Futures Contracts Dumped at Market Open Posted: 19 Jul 2015 07:34 PM PDT  |
| Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump Posted: 19 Jul 2015 07:29 PM PDT The last time gold plummeted by just over $30 per ounce (dragging down silver and bitcoin with it) and resulted in a crash so furious it led to a "Velocity Logic" market halt for 10 seconds, was on January 6, 2014. Many said this was just perfectly normal selling, although we explicitly said (and showed) that it was a clear case of an HFT algo gone wild (following an order to do just that and slam all sell stops) when someone manipulated the market and repriced gold substantially lower. Precisely one month ago, some 18 months after the incident, the Comex admitted as much, when it blamed the collapse on "unusually large and atypical trading activity by several of the Firm's customers and caused the mass entry of order messages by Zenfire, which resulted in a disruptive and rapid price movement in the February 2014 Gold Futures market and prompted a Velocity Logic event." Curiously despite the "errant" order, gold did not rebound because the entire purpose of the selling slam was to reset the prevailing price far lower. This is what the Comex said in Disciplinary action 14-9807-BC:
We bring this up because moments ago, just before 9:30pm Eastern time or right as China opened for trading, gold (as well as platinum, silver, and virtually all precious metals) flashed crashed when "someone" sold $2.7 billion notional in gold, resulting in a 4.2% or about $50 to just over $1,086/oz, the lowest level since March 2010. Gold:
Silver:
Platinum:
Once again, as in February 2014 and on various prior cases, the fact that someone meant to take out the entire bid stack reveals that this was not a normal order and price discovery was the last thing on the seller's mind, but an intentional HFT-induced slam with one purpose: force the sell stops. So what caused it? The answer is probably irrelevant: it could be another HFT-orchestrated smash a la February 2014, or it could be the BIS' gold and FX trading desk under Benoit Gilson, or it could be just a massive Chinese commodity financing deal unwind as we schematically showed last March... ... or it could be simply Citigroup, which as we showed earlier this month has now captured the precious metals market via derivatives.
Whatever the reason, gold just had its biggest flash crash in nearly two years, as a targeted stop hunt launched by the dumping of $2.7 billion notional in product, accelerates the capitulation of the momentum buyers (and in this case sellers) pushing gold to a level not seen almost since 2009. The price appears to have rebounded after the initial shock, up about $20 from the intraday low of $1,086 but we expect that to be retested shortly, and for gold to plunge further into triple digits, at which point gold miners will simply cease to produce the metal whose all-in production cost is in the $1100 and higher range, when it will also become clear that only derivatives and "paper" are the marginal "price" setters. But perhaps the biggest irony of the night is that moments before the flash crash, the PBOC revised its shocking Friday announcement revealing its gold holdings had increased by 57%. As Bloomberg said:
Previously, this was said to be 53.31 million ounces or 10,000 ounces lower, confirming China is literally just making up gold inventory "numbers" as it goes along, and clearly buying ever more physical while the price of paper precious metals conveniently plunges ever lower.
One thing is certain: the PBOC will be quite grateful to whoever (or whatever) was the catalyst for the latest and greatest gold flash crash as well. |
| No Silver Shortage, Huh? …Now QSB Suspends Sales As DEMAND Crushes Supply Posted: 19 Jul 2015 07:22 PM PDT by SGT, SGT Report.com: Several SGT report readers alerted us to this one: Quality Silver Bullion announced this weekend that at least for the immediate future, they are no longer taking any new orders for PHYSICAL silver or gold. In a market where properly hedged precious metals dealers care not about that daily price fluctuations in precious metals, profiting only from the thin markup above spot plus cost premium, this is an interesting development. Because no matter how well any company hedges against price fluctuations, how does one sell product one does not have? QSB goes on to say “This situation is not unique to QSB.”
As Bill Holter, Rob Kirby, Eric Dubin, Andy Hoffman, The Doc, Bix Weir, The Wealth Watchman and Chris Duane have told us in numerous interviews, thanks to the endless paper silver supplied by the criminal banking cartel led by JP Morgan, Citi and HSBC, the price of silver is likely to go lower and lower until there is NO PHYSICAL SUPPLY available at ANYTHING CLOSE TO THE BANKSTER MANIPULATED PAPER PRICE. We’re not there yet, but we may be getting close. As our friend Charles Savoie recently penned for SGT Report, Absolutely There is a SHORTAGE of Raw Material Silver Charles wrote: Mint shortages are caused only by blank shortages you say. You know how long this has been going on? In any natural market, manufacturing capacity adjusts to enable transformation of raw material into finished product so that demand is matched with supply. Absolutely there is a shortage of raw material silver. If the housing market were booming, and the timber was available for conversion into lumber but sawmills were of inadequate capacity, the market would add sawmill capacity. Silver blanks are no different in that sense than lumber. There is a silver shortage which is why Dow Chemical, Du Pont, Ferro Corporation and Tiffany & Co. recently abandoned their long term memberships in the Silver Users Association. They hope to sidestep scandal when the blowup transpires. The short profile in COMEX silver is a billboard that someone fears a higher silver price more than they fear the grave. Unlike cartel paper, the demand for PHYSICAL silver bullion is real. As I wrote in July 13th,
So, as KWN headlines often scream, the price of silver should shoot far higher at any minute, right? In a “normal” market a collapse of supply in the face of surging demand would cause the price of an asset to surge higher until supply and demand equilibrium have been reached. However, we are unlikely to see that in the case of silver. Because this is no normal market. In fact, as Charles Savoie has so brilliantly exposed in his Silver Squelchers series, the silver market is the most manipulated market in the history of mankind. Think about that as you search for PHYSICAL silver to buy at sub $15/ounce prices. |
| Posted: 19 Jul 2015 06:45 PM PDT Australian consumers are more worried about the medium term outlook than at the peak of the financial crisis, and rightfully so. Source: @ANZ_WarrenHogan As The Telegraph reports, by the end of the first quarter this year, Australia’s net foreign debt had climbed to a record $955bn, equal to an already unsustainable 60pc of gross domestic product, and is set to rise as RBA's bet that depreciation in the value of the country’s currency would help to offset the decline in its overbearing mining industry hasn’t happened to the extent they would have wished.
Furthermore, as UBS explains, China's real GDP growth cycles have become an increasingly important driver of Australia's nominal GDP growth this last decade. With iron ore and coal prices plumbing new record lows, a Chinese (real) economy firing on perhaps 1 cyclinder, and equity investors reeling from China's collapse; perhaps the situation facing Australia is more like Greece than many want to admit, as Gina Rinehart, Australia’s richest woman and matriarch of Perth’s Hancock mining dynasty stunned her workers this week: accept a 10% pay cut or face redundancies.
The government in Canberra and the Reserve Bank of Australia, The Telegraph explains, had bet that depreciation in the value of the country’s currency would help to offset the decline in its overbearing mining industry. However, that hasn’t happened to the extent they would have wished.
As UBS further explains, China's real GDP growth cycles have become an increasingly important driver of Australia's nominal GDP growth this last decade.
* * * As The Telegraph concludes, rather ominously,
|
| Chinese Stocks Drop'n'Pop After Officials Confirm "Stock Market Rout Stopped By Timely Measures" Posted: 19 Jul 2015 06:22 PM PDT With shenanigans in precious metals, investors are rushing back into the safety of Chinese high beta idiotmakers stocks... Shanghai Composite Tops 4000 Once again
One wonders if gold manipulation played a hand...
After two days of deleveraging and a squeeze into the expiration of CSI-300 Futures pushing Chinese stocks higher, the grandmas and farmers have decided now is an opportune moment to once again start adding margin debt. Who is to blame? Simple - Chinese officials have confirmed that "the stock market rout is over thanks to their timely measures." Futures opened modestly higher but are fading as the cash open looms...
Rest assured world...
And so, after 2 days of rationality, PBOC reports,
As the Chinese just can't help themselves... CSI-300 hovering flat (China's S&P 500) CHINA FTSE A50 (China's Dow) lower....
Finally, here is a brief explanation from Stratfor on the political consequences of China's stock market collapse: |
| Lies, Damned Lies, & Inflation Statistics Posted: 19 Jul 2015 05:55 PM PDT Submitted by Jim Quinn via The Burning Platform blog, The government released their monthly CPI report this week. Even though it came in at an annualized rate of 3.6%, they and their mouthpieces in the corporate mainstream media dutifully downplayed the uptrend. They can’t let the plebs know the truth. That might upend their economic recovery storyline and put a crimp into their artificial free money, zero interest rate, stock market rally. If they were to admit inflation is rising, the Fed would be forced to raise rates. That is unacceptable in our rigged .01% economy. There are banker bonuses, CEO stock options, corporate stock buyback earnings per share goals and captured politician elections at stake. The corporate MSM immediately shifted the focus to the annual CPI figure of 0.1%. That’s right. Your government keepers expect you to believe the prices you pay to live your everyday life have been essentially flat in the last year. Anyone who lives in the real world, not the BLS Bizarro world of models, seasonal adjustments, hedonic adjustments, and substitution adjustments, knows this is a lie. The original concept of CPI was to measure the true cost of maintaining a constant standard of living. It should reflect your true inflation of out of pocket costs to live a daily existence in this country. Instead, it has become a manipulated statistic using academic theories as a cover to systematically under-report the true level of inflation. The purpose has been to cut annual cost of living adjustments to Social Security and other government benefits, while over-estimating the true level of GDP. Artificially low inflation figures allow the mega-corporations who control the country to keep wage increases to workers low. Under-reporting the true level of inflation also allows the Federal Reserve to keep their discount rate far lower than it would be in an honest free market. The Wall Street banks, who own and control the Federal Reserve, are free to charge 18% on credit card balances while paying .25% to savers. The manipulation of the CPI benefits the vested interests, impoverishes the masses, and slowly but surely contributes to the destruction of our economic system. A deep dive into Table 2 from the BLS reveals some truth and uncovers more lies. Their weighting of everyday living expenditures is warped and purposefully misleading. Let’s look at the annual increases in some food items we might consume in the course of a month, living in this empire of lies:
Despite these documented increases, the BLS says food inflation only ran at 1.8% in the last year. They show large decreases in pork, seafood, dairy, and vegetable prices. I grocery shop every week. I buy milk, fish, and vegetables and the prices have not fallen. The price of pork products has decreased from all-time highs, but is still well above prices from a few years ago. The BLS fraudulently keeps the food price increase lower by assuming you switch from beef to pork when the price of beef soars. That assumption does not lower the price of food. The assumption essentially builds in a lower standard of living for you in their model of the world. The other ridiculous assumption is the weighting for food eaten away from home. Giving this a weighting of 5.8% is outrageous when everyone knows obese Americans are chowing down at Taco Bell and the millions of other purveyors of toxic food sludge multiple times per day. If you are like me, you probably need to live someplace. Food and shelter are the most basic of needs in a society. But according to the BLS they account for less than 50% of your expenses. Let’s examine some shelter related costs to see how badly the BLS is lying in this area:
There is so much wrong with the BLS data, I don’t know where to start. The rental market has been on fire since 2012. Builders are erecting apartments at a breakneck pace. Independent, non-captured, neutral real estate organizations show rents surging to all time highs, growing by 5.1% on an annual basis. Real rents in the real world have grown by 14% since 2012. The BLS says they’ve grown by 9%. Who do you believe? It’s funny how the mysterious owner’s equivalent rent calculation spits out a 3% increase in the last year. National home prices, based on Case Shiller data and NAR data shows prices up between 5% and 10% in the last year and up by 25% since 2012. Mortgage rates have risen to 4% from the low 3% range. Property taxes are soaring across the country as indebted localities rape taxpayers to pay for their gold plated government benefits and pensions. Evidently the BLS just ignores prices, mortgage payments, and real estate taxes when calculating their lies. The final outrage is the weighting applied by the BLS to the owners equivalent rent. It accounts for 24% of the CPI calculation, virtually the same as it did in 2007. In case you haven’t noticed, the home ownership rate has plunged to 22 year lows since 2007, as millions of foreclosures booted people out of homes and millions of millennials are so loaded with student loan debt and stuck with low paying Obama jobs that home ownership is a distant dream. How can the BLS continue to weight home ownership at the same level when the percentage of rental units has soared? There is no question the BLS should have dramatically increased the weighting of rental housing. In reality, the large increases in rental rates and the surge of rental households reflects a much higher inflation rate than is being reported by the government. The BLS figure is a blatant lie. The recent report from the Center for Housing Studies reveals the falsity of the government reported propaganda. Over 20.7 million renter households (49.0%) pay more than 30% of their income on housing. More than a quarter of all renter households, or 11.2 million, spend more than 50% of their income on housing. The median US renter household earned $32,700 in 2013 and spent $900 per month on housing costs. Renter housing costs are gross rents, which include contract rents and utilities. If the median renter household spends 33% of their income on housing costs how can the BLS give it only a 7.2% weighting in the CPI calculation? The Center for Housing Studies report drives a stake into the heart of the manipulated, politically massaged, false data put out by the BLS to keep the masses sedated and their bosses fat, happy and rich: Over the span of just 10 years, the share of renters aged 25–34 with cost burdens (paying more than 30 percent of their incomes for housing) increased from 40 percent to 46 percent, while the share with severe burdens (paying more than 50 percent of income) rose from 19 percent to 23 percent. During roughly the same period, the share of renters aged 25–34 with student loan debt jumped from 30 percent in 2004 to 41 percent in 2013, with the average amount of debt up 50 percent, to $30,700. The faux journalists in the dying legacy media act baffled by the continued real decline in retail sales when the answer is staring them right in the face. True inflation in essential living expenses combined with declining real wages and increasing debt burdens has left the average household with little or no money to spend. The next blatantly manipulated false data is related to healthcare. Let’s peruse some this detailed inflation data:
Anyone living in the real world knows Obamacare has resulted in a tremendous increase in demand for drugs, medical services, and medical equipment. Health insurance companies, drug companies, drug wholesalers, hospital corporations, and drug stores are reporting record profits as their stock prices hit all-time highs. When was the last time you saw prices drop or stay flat in the healthcare arena? It is patently outrageous for the BLS to report an annual health insurance cost increase of a mere 0.7%. The annual cost of employee sponsored health insurance is 6.3% higher than last year, with the employee portion skyrocketing by 8.0% based on real data in the real world. I work for the largest employer in Philadelphia, with the most negotiating clout against insurers, and my portion has gone up by 10% to 20% annually for the last five years. Everyone working for a company has experienced the same or higher increases. Even the Obamacare exchanges are seeing double digit premium increases in many states. Studies from Price Waterhouse Coopers and McKinsey found increases in average premiums between 6% and 10% across the country. It takes major cajones for the BLS to report 0.7% health insurance inflation, but their job is not to report factual information. Their job is to keep the ignorant masses ignorant of their plight. The bigger the lie, the more likely it is to be believed. The even more ridiculous aspect to the BLS data is that health insurance is weighted at .75% in the CPI calculation. The median household income in this country is $52,000. Employees are paying approximately $4,000 in health insurance per year on average. That is 7.7% of their income. The BLS weighting is absurd. Using a true inflation rate and true weighting would add at least 2% to the CPI figure. Another area that impacts every American every day is transportation. People need to drive or take public transportation in order to live their lives. Here are some more crucial inflation data points from the BLS:
So we have near record levels of new auto sales, driven by subprime auto debt and 7 year 0% financing, with average vehicle prices at all-time highs, and the BLS reports prices only went up 1.2% in the last year. Edmunds, the authority in auto data, says prices went up 2.6% in the last year. Do you believe the BLS model or real data from the real world, broken down by automaker and vehicle? The even more ridiculous contention is that used car prices fell. I’ve bought two used cars in the last year and I can attest that prices are not falling. Edmunds reported that used car prices have risen by 7.1% in the last year. Leases as a percentage of total auto sales is also at record levels. Does this really jive with a decrease in leasing expenses? I think not. There are 254 million passenger vehicles registered in the United States. We have a record level of auto loan debt totaling $1 trillion and a record level of auto leases. According to Edmunds, the average monthly car payment is $479. That is $5,748 per year. That equals 11% of the median household income. Why would the BLS only give this category a 5.7% weighting? Bankrupt states across the country have been jacking up tolls. The BLS says they went up by 2.4%. My beloved state of Pennsylvania has increased them by 10% per year for the last three years. The BLS says the cost of public transportation is plummeting. Has a Amtrak or any municipal public transportation system EVER reduced fares? Not a chance. They need more revenue to fund the government pensions of their union employees. There are a few other categories that might be of interest to you:
Isn’t it delightful that your friendly neighborhood Wall Street bank gets free money from the Fed, charges you 18% on your credit card balance, pays you nothing for your deposits, and then jacks up your bank fees? The relentless inflation in college tuition is being driven by the relentless doling out of student loans by the Federal Government to people who aren’t intellectually capable of completing college level material. The $1.4 trillion of student loans will never be repaid. The taxpayer will be on the hook for hundreds of billions in write-offs. To celebrate the near zero inflation reported by your friendly government drones at the BLS take your family of four to a baseball game, spending $160 for tickets, $25 to park your car, $20 for two warm beers, $10 for two sodas, $24 for four hot dogs, and $10 for an order of cheese fries. Make sure you toast Greenspan, Bernanke, Yellen and the rest of the Federal Reserve governors who have purposefully reduced the purchasing power of your dollar by 96% over the last century. You know your true level of inflation. You know it’s not 0.1%. You know it’s somewhere between 4% and 10%. You know your government is lying to you. You know the captured corporate media perpetuates the lies. You know those in control of the government must lie to keep their Ponzi scheme going. You know they are just following the Edward Bernays playbook. They want you to believe it’s for your own good. Do you think it’s for your own good?
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| How The Fed And Wall Street Are Eating Their Seed Corn Posted: 19 Jul 2015 05:10 PM PDT When it comes to the stock market these days the overriding theme you hear from the financial media is “You’ve got to get in.” Another is, “Buy on the dips and average in.” Or, “You can’t profit if you aren’t in it” and more. So many more it would fill its own multi-volume set. However, there was some truth to many of those quips just a few years ago. Today, the amount of hidden reality to the actual destruction of one’s wealth is far more factual than any will let on. Let alone reveal. I hear and speak to a lot of entrepreneurs who are absolutely mystified by not only the rise in the markets since the financial crisis in 2008. Rather, what many just can’t wrap their heads around is: “If the markets are a reflection of the economy. Then how in the world did we get up here?” That line of thought I rendered down to be the overwhelming theme when discussing the current state of business affairs throughout the economy. This confusion is coming from a group of people who at one time would seek out Wall Street aficionados for insight or expertise. Today, they tend more to distrust what they hear. For what they lack in stock market expertise – they make up in spades with an acutely precise B.S. meter honed by years of business acumen. And many confirm today; it’s off the charts far more than they can ever remember. So much so, as to avoid stepping in any of it – they just avoid it all together. At one time entrepreneurs were not only sought out by Wall Street, rather, entrepreneurs did the same in kind. Before the advent of 401K plans and more it was entrepreneurs with the sale of their business, or profits from something else that fueled many a brokerage firms bottom line. And in many cases that relationship did well for both sides. There was true expertise needed to help one navigate the pitfalls of exactly how and where one was to put their money to work (usually a substantial amount such as after a business sale etc.) in relative safety as to finance the remainder of one’s years. Today, not only in much of that expertise gone – so too is the safety. There’s probably no better example of this than what transpires at any bank branch today (those that are left that is). Opening a checking or savings account? You used to be incentivized to do so. But what this initial transaction is really designed for today is more along the lines of “a soft opening” to ask…”So, do you have a 401K account elsewhere?” Then the sales pitch is on by some seemingly just out of grad school quota seeking “financial adviser” with an array of pamphlets, jargon, and sales phrases anyone with any financial sense can see through. “Index this… diversify that…dividend paying yields ” and on and on. Along with whatever might be the latest tagline from the financial shows. This is the true face of Wall St. today. As much as Wall St. would like to think of itself as it was in the glory days of a Gordon Gekko – that image is long gone. Today, what most people see is nothing more than some recent college grad trying desperately to say anything that might convince one to switch 401K accounts as to possibly make this months quota. For if not they too will have to join the hordes of recently dislocated tellers they once worked with. And the numbers show this to be true because not only is the vast majority not switching – they aren’t even staying, let alone “getting in.” Let’s use a few scenarios that are emblematic to the challenges facing the likes of both the recently cashed out entrepreneur as well as a recent retiree of any sorts. I’ll use the dollar amount of $3,000,000.00 ($3MM). To some this may seem high, to others it’s not all that great. However, for many entrepreneurs it’s an amount easily understood as well as feasible. I also use if because it’s a representative amount even Julian Robertson of Tiger Management™ has used to describe the dilemma many entrepreneurs find themselves in with navigating today’s financial morass. (The following of course is over simplified, I mean it as such. However, the questions, answers, as well as premise can not be over stated as to their importance.)
I could go on and on, yet I believe, you get the point. Ask just one of the above scenarios to what constitutes a “Wall St. maven” today and I’ll bet dollars to doughnuts you’ll hear more back peddling or more evasive, jargon laced, mumbo-jumbo – it will have you questioning humanity itself let alone just financially. What both Wall Street in general as well as the Federal Reserve has wrought is a market so adulterated, so anemic, and so mistrusted the euphemistic “money on the sidelines” has more in common with nursery rhymes than it does with anything reality based. There is no money on the sidelines. Nobody wants “in” to this market. Anyone with half a brain and a modicum of common sense wants out – and the outflow numbers show it still to be true. “Buying the right index, diversification, and thinking like a billionaire” is not only nonsensical in today’s marketplace. It can cause one a whole lot of pain when one is unable to fully comprehend as well as separate euphemisms for real world panic and dismay. All one needs to do is look east to see just how well that type of thinking is doing in China today. For “bubbles” no matter the culture when it comes to one’s money “pop” the same way: First panic – then distrust – then the repeating of another euphemism that sometimes lasts for generations: Never trust a bank or the markets. Never, ever, ever! |
| Retail Silver Premiums - The Candle Blowing in the Wind Posted: 19 Jul 2015 10:47 AM PDT Despite the continued technical, paper induced bias to the downside, recent news that the US Mint has stopped silver eagle production is once again is being singled as the likely cause for the premium surges now being observed across all physical silver retail products. Is this true physical demand bleeding through the paper charade? The bullion retail trade is a thin margin business to begin with. |
| Retail Silver Premiums - The Candle Blowing in the Wind Posted: 19 Jul 2015 10:17 AM PDT Jeffrey Lewis |
| China official Gold holdings ‘just a little’ understated Posted: 19 Jul 2015 08:52 AM PDT KWN – July 19, 2015 |
| Now that they're being destroyed, even respectable people can admit that GATA is right Posted: 19 Jul 2015 07:45 AM PDT 10:45a ET Sunday, July 19, 2015 Dear Friend of GATA and Gold: Our friend R.B. writes: "Once China or any country comes out with an official statement saying it has X tonnes of gold when they really have a lot more (as China certainly does), how does it turn around later and say it has (and had, in fact, at the time of the first statement) much more? And the recent acknowledgment by Tocqueville's gold fund manager, John Hathaway -- at least in his public posture -- of gold price suppression by central banks raises the question of why he didn't 'come out' a long time ago. If people in the gold business came out earlier about gold price suppression in appreciable numbers, maybe gold's postion would be quite different today. It seems fair to exclaim: 'Only now are you aboard." To reply to R.B.: As for China, it could do what Saudi Arabia did in 2010 -- -- and say simply that it had the extra gold in "other accounts." That is, the People's Bank of China could say that other agencies of government, not the bank itself, had the unreported metal. Or the bank could say that it just bought the extra gold from those other government agencies, from bullion banks, or from someone else, like the Bank for International Settlements or the International Monetary Fund. Or the bank could say that it had mistakenly put a decimal point in the wrong place. ... Dispatch continues below ... ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Today nearly everything financial and official is a lie, and nobody cares about lies, least of all mainstream financial news organizations. As for Tocqueville's Hathaway, GATA has been cordially nagging him on this issue for 15 years and he has cordially listened. He started coming around in public a few years ago. His commentary the other day exactly reflects what GATA long has been saying: http://www.gata.org/node/15564 A few days ago bullion broker Sharps Pixley's Ross Norman started to come around as well -- http://www.gata.org/node/15533 -- even as he too has known better for a long time. The problem is that these people are respectable and haven't wanted to risk their respectability with the financial establishment with which they have been doing business. Further, they have had business obligations to other respectable people who might have been harmed by candor. But as "financial repression" by central banks has intensified beyond all expectations, these people's businesses now are getting utterly destroyed and, being destroyed, these people no longer have much to lose by acknowledging gold price suppression. Of course GATA would have liked to have had their support a long time ago, since, as you note, it might have made a difference. We'd like their support now, as it still might make a difference. But we understand their circumstances as well as our own. That is, GATA is not respectable, has never aspired to be, and has nothing to lose, having realized long ago that what we valued most -- democracy, individual liberty, free markets, limited government, and such -- already had been lost and was not going to be regained by respectability. CHRIS POWELL, Secretary/Treasurer Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or 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: |
| France's Hollande proposes creation of euro-zone government Posted: 19 Jul 2015 07:15 AM PDT By Angeline Benoit French President Francois Hollande said that the 19 countries using the euro need their own government complete with a budget and parliament to cooperate better and overcome the Greek crisis. "Circumstances are leading us to accelerate," Hollande said in an opinion piece published by the Journal du Dimanche on Sunday. "What threatens us is not too much Europe but a lack of it." While the euro zone has a common currency, fiscal and economic policies remain mostly in the hands of each member state. European Central Bank President Mario Draghi made a plea this week for deeper cooperation between the euro members after political squabbles over Greece almost led to a rupture in the single currency. Countries in favor of more integration should move ahead, forming an "avant-garde," Hollande said. ... ... For the remainder of the report: http://www.bloomberg.com/news/articles/2015-07-19/france-s-hollande-prop... ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or 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: |
| Koos Jansen: China likely has more gold than announced but isn't ready to rock the world Posted: 19 Jul 2015 05:58 AM PDT 9a ET Sunday, July 19, 2015 Dear Friend of GATA and Gold: And now for what is probably the most informed analysis of last week's announcement by the People's Bank of China about its gold reserves -- the analysis by gold researcher and GATA consultant Koos Jansen. Jansen's main assertions: 1) The announced reserve total is probably an understatement of actual reserves. 2) China's import data acknowledges imports of both monetary and non-monetary gold but customs reports quantify only the non-monetary gold, never the monetary gold, thereby signifying that the People's Bank of China does not want is gold purchases made public. That is, official gold purchases in China, like official gold swaps and leases in the West, are highly sensitive and top-secret. ... Dispatch continues below ... ADVERTISEMENT USAGold: Coins and bullion since 1973 USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business. Please call 1-800-869-5115x100 and ask for the trading desk, or visit: USAGold: Great prices, quick delivery -- all the time. 3) Gold is a politically and diplomatically sensitive subject as China grows its worldwide economic power and aspires to turn its renminbi into a reserve currency as a component of the International Monetary Fund's "special drawing rights." Jansen writes: "With the United States having the power to obstruct the renminbi's inclusion into the SDR, the Chinese have to play it safe. They are required to be transparent about their true gold reserves, but may not want to upset the United States by disclosing an official gold reserve figure at 3,500 tonnes. The 1,658 tonnes figure, which is too little to rock the global financial order, though a sign that China assesses gold to be 'an important element of international reserve diversification,' may thus be an appropriate figure. It's not in China's interest to rush into a new international monetary system as China continues to diversify away from the U.S. dollar. 4) China is not selling U.S. treasuries but has stopped buying them and is very gradually converting its foreign exchange into gold. Jansen's analysis is headlined "Analyzing PBOC Official Gold Reserves Increment" snd it's posted at Bullion Star here: https://www.bullionstar.com/blogs/koos-jansen/analyzing-pboc-official-go... CHRIS POWELL, Secretary/Treasurer Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or 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: |
| Collapse of the Global Banking System Caused by Central Banks! Posted: 19 Jul 2015 02:00 AM PDT Central banks print currency which loan it to commercial banks at 0% interest rates who then loan it to the people at a much higher rate are consistently working against the public interest. Countless individuals have been looking into credit unions as an alternative means of storing their... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
“Gold has worked down from Alexander’s time. When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.”
There are few countries in the world whose citizens have been more systematically deceived, dumbed-down and propagandized than Americans. The only country I can think of that is notably worse is North Korea. But, I'll bet even in North Korea they know that a 10 ounce silver bar is worth more than a chocolate bar… although they may take the chocolate bar there to avoid starvation… but that isn't the case in the home of morbid obesity, the US.
As always, please make sure you've read 
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