Tuesday, 28 June 2011

GoldNomics - Cash or Gold Bullion?

Amazing Video for those that get confused by the benefits of owning Gold and Silver. Show this to people that don't understand, and I guarantee you even their hamster will get it.

Athens riots video: New round of clashes, stones & tear gas in Greece - June 28th

Protests in Greece today are being described as worse than at there peak. QE2 ending, the arab spring, Europe in Chaos? Keep your stops tight, could be a couple of bumpy months. Keep your Gold tighter.

Monday, 27 June 2011

David Stockman: Blackberry Panic of 2008

This guy can read my mind. This just makes sense.

The Communists Have Taken Over The Acropolis

Xerxes Blankfein's attempts to auction off Athens' monuments appear to have met with a resilient match in the face of the communist affiliated Spartans who have now covered the Parthenon with slogans that read: "The peoples have the power and never surrender - Organise - Counterattack." For indications of just what this "organized counterattack" will look like keep an eye on livestreams from Syntagma tomorrow, when the stakes will be far higher than during last week's vote of confidence.

Read the full story at ZeroHedge Here:

Sunday, 26 June 2011

Washington and Wall Street's Incestuous Corruption

"HONESTY is not the policy of Washington or the Investment Banks."

Read Martin Armstrongs latest piece about the deep corruption that runs through government and wall street.

Friday, 24 June 2011

Nigel Farage Holds Funeral Procession For Euro In The Middle Of Brussels

The world's premier euroskeptic, Nigel Farage, just held a funeral procession for the Euro after Europe now has just 10 days left in which to save its battered currency. ND at the rate Europe is imploding, Nigel won't have long to wait to get confirmation that all his concerns about the flawed European experiment were not only grounded but outright optimistic. And yet Europe, caught up in its own historic ponzi, refuses to do the right thing which is to impair banks with a 50%+ haircut, and instead will kick the can down the road, in the process destroying any residual liquidation value of hundreds of trillions of impaired assets, which as has been pointed out on numerous times before, are concurrently the liabilities of other banking institutions, therby making the entire central banking plan of debt inflation pointless. Farrage summarizes this best: "European banks are going to take a hit at some point anyway, if you are a bank owed a great deal of money it's better to get 50% of it than none of it. Down the path we are going now is heading for a total bust." Probably a good analogy is that if Bernie Madoff was stopped in the 80s or ever 90s, much of his capital would have been recovered. Alas, waiting until he himself cried uncle, guaranteed no recoveries for anyone. It is sad that Europe, and the entire "developed world" has decided to pursue this path. 

Read the full story here:


Thursday, 23 June 2011

Mike Krieger Sees Widespread Panic

That’s two press conferences laden with softball questions from “the press” and two epic flops by The Bernank.  Two extremely important things that came out of the disaster that was this event yesterday.  First, I want to point your attention to the quote I pasted at the top.  In response to the question of where The Bernank stood on monetary policy in light of his prior arrogant and cocksure statements a decade earlier about how the Japanese were being too passive in their methods he stated “Well, I'm a little bit more sympathetic to central bankers now than I was 10 years ago.”  BINGO.  That was far and away the most important thing he said the whole press conference.  Why?  Well, for several reasons.  First, it was pretty much the only spontaneous unscripted thing he said the whole time.  Second, because this is him basically admitting that sitting in an ivory tower telling others how to save the free world via monetary policy was a naive and idiotic thing to do (why people still believe in central banking, I mean planning, is beyond me).  Talk is cheap and The Bernank now has had time to test his sad statist theories and guess what happened?  He failed miserably in front of the entire world.  By saying that he is “more sympathetic to central bankers” he is saying that theories are one thing and he now realizes that.  This is HUGE.  The Bernank has no clothes.

- Mike Krieger, via ZeroHedge

Read the full article here:


Tuesday, 21 June 2011

Forbes talking about a Return to the Gold Standard! It's coming one Way or Another.

Gold convertibility would save not only the Euro but all paper currencies. This includes the U.S. dollar. Soon the focus will turn to the legitimacy of state gold reserves.

Professor Robert Mundell urges gold convertibility for the euro, the currency which he fathered, as well as for the dollar. This is a major step forward. Thought leaders are abandoning “old monetarism,” which was vainly fixated on quantity. Even its chief proponent, Milton Friedman, acknowledged old monetarism as unsuccessful in a 2003 interview with the Financial Times. An emerging “new monetarism” is quickly taking its place — one that focuses on the quality, not quantity, of money.

Empirical data suggest that the gold dollar represents the epitome of quality. As Forbes’ own Steve Forbes advised the presidential candidates last week, the “debate should be focused on what the best gold system is, not on whether we need to go back on one.”

- Forbes

Saturday, 18 June 2011

Martin Armstrong - The Search for Intelligent Life

Is their Intelligent life within Government? From my experiences and others I know, the answer is not much. If you do find it, it rarely stays long.

Read Martin Armstrongs latest article:

This is as Serious as it Gets

“The problem is so serious, the problem is so present time, the problem is so real that it has inherent in it the probability that the economy is not going to have a significant recovery for more than a decade.  And the standard of living in the United States, the standard of many who are reading this now, especially those who have taken no measures whatsoever to protect themselves, who simply look at it as reading something of interest but not really acting on it, is going to be so significantly impacted as to make the middle-class or higher middle-class join the serf class.  This is as serious as it gets.``

- Jim Sinclair

Wednesday, 15 June 2011

Greece: the Crisis Reaches New Highs

Euro area Finance Ministers so far have failed to find enough common ground on the next steps to address the Greek crisis, which continues to deepen inexorably. Credit rating agencies are mounting the pressure on Greek banks and financial institutions which are deemed to have material exposures towards Greece. All this is amplifying uncertainty and -- by reflex -- market volatility. Against this backdrop, Greek two-year yields reached their EMU era peak of 28%, and the euro hit a one-month low.

Sovereign bond yields at the periphery, Italy included, are all trading at distressed levels, close to one-year highs, as fears of contagion escalate. This is not a good sign.

In principle, next week’s Eurogroup and Ecofin meetings could mark some progress (June 20-21) and help to mitigate market distress, but there are two major policy complications.

Firstly, there is still a divide between the German inclination towards private sector burden-sharing and the Franco-ECB objection to anything that carries an‚element of compulsion?. A compromise will need to be forged to avoid a policy deadlock.

Second, even assuming that this major hurdle is cleared, an even bigger one is shaping up. On Wednesday, Prime Minister Papandreou offered to resign on the condition that all opposition parties agree to the additional austerity measures required under the EU/IMF programme.

This looks like a last ditch effort from Papandreou to save the situation as his Parliamentary majority is eroded, and the opposition threatens to renege on the conditions adhered to when the IMF Stand-By Arrangement was originally signed back in May 2010. Meeting these programme requirements is a binding condition for a continuation of the EU/IMF quarterly disbursements, which are necessary to plug Greece’s funding gap.

Greece’s situation, and the euro area’s sovereign crisis, have reached a new level of uncertainty.

- SocGen

Tuesday, 14 June 2011

For First Time Total Comex Silver Drops Below 100 Million Ounces; Physical Deliverable Silver Under 28 Million Oz

The slow, steady, very predetermined and methodical depletion of Comex silver, which recently entered 6-sigma range for a perfectly random event, or is the preparation for a Hunt Bros squeeze, now that there is 32% less silver (27.9MM vs 41MM on April 19) than there was 2 months ago, is starting to become disturbing to anyone who can identify a flat line pointing northeast at -45 degrees. Contrary to promises from virtually everyone that the ongoing decline in registered silver is something very temporary, the perfectly diagonal chart below begs to differ with this naive and now disproven hypothesis. The culprit for today's decline to a new record low is Brink's warehouse, where there was a 9% draw down in both registered and eligible silver. In the meantime, registered silver has not posted an uptick in over 3 months. Amusingly this is happening even as the price of spot and futures silver continues to trend lower. We wonder at what point will the general public wake up to what is happening: 25MM oz? 20MM oz? 10MM oz? 0? 

Read the full article, at Zero Hedge here:


Monday, 13 June 2011

Ireland Seizes $7 Billion From Its Pension Fund To Boost Employment

THE GOVERNMENT WILL use the last €5 billion in the National Pensions Reserve Fund (NPRF) to help create employment although it will need approval from the International Monetary Fund (IMF) and Europe before doing so.

The Sunday Times reports today that the money will be used by the government to create as many as 80,000 jobs in Ireland. The paper cites government sources in reporting that the use of the money would be seen as more viable then the proposed sale of semi-state assets in the current weak market.

One source says that the view of the troika of IMF, the European Union and the European Central Bank is that if you have money it should be spent rather than drawing on outside funding or money from selling off assets at the wrong-time.

The NPRF was launched ten-years-ago by the then Minister for Finance Charlie McCreevy.
Its purpose was to build up assets which would part-finance the cost to the exchequer of social welfare and public service pensions from 2025 onward.

A total of €17.5 billion of it is being used as part of the €85 billion EU/IMF bailout that was agreed last November with €10 billion of that being used to recapitalise the banking sector in Ireland.

- Hugh O’Connell, thejournal.ie 

Read the full article here:


Saturday, 11 June 2011

Eric Sprott - Nothing Surprises me of Where Gold can Go

When asked about Jim Sinclair’s comments regarding $12,500 gold Sprott had this to say, 

“Nothing surprises me as to where gold can go.  I mean you just simply look at the printing of money and the way we’ve attempted to deal with things and the stresses in the banking system, and my ultimate end for gold is when people realize they are probably better off not having their money in a bank.  They get paid nothing, they take all of the risk of the bank balance sheet which is incredible, and in my mind why wouldn’t you own gold and silver that are going to maintain their purchasing power in almost any circumstance?  You are way better off owning physical metal than owning a piece of paper at a bank.”

- Eric Sprott, via a King World News Interview

Read the full interview here:

Between a Rock and a Hard Place

- JSMineset.com

Thursday, 9 June 2011

Past the Point of No Return

“We’re in a shakeout now and frankly it isn’t as scary as the one in 2008, but I think there’s no foundation whatsoever for solid, robust economic growth and that’s the realization the markets are coming to.  I think we’re past the point of no return.”

- John Hathaway

The Devil you Know...

Picture via JSMinteset.com

Monday, 6 June 2011

Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Weeks

When we first started paying attention to the physical ("Registered") silver held in COMEX warehouses on April 20 following the explosion in the silver price, the total amounted to just over 41 million ounces. As of today, a short 6 weeks later, the total physical silver held throughout the entire Comex complex, has dropped by 30% over that period. As of close today, the total amount of Registered silver is now 28,773,375 ounces, a decline of 2.9% overnight from 29,636,513. This is due to a withdrawal of physical from both Brinks and Scotia Mocatta, as well as the ongoing reclassification of 438,708 ounces of Registered into Eligible silver over at HSBC (but wait, it will revert back to Registered any moment... we promise). At this rate of withdrawal and "adjustment", there will be no physical silver left in the entire Comex in about 5 months. At that point, even one delivery intention will send the price of silver to previously unseen levels.

- Read the full article here:


Thursday, 2 June 2011

Hyperinflation or the Greatest Depression? You Decide!

“My honest opinion is that we have gone so far down the road that there is only two outcomes now.  You can continue QE to infinity as Jim Sinclair says, and that will lead to some form of hyperinflation or you can sort of go cold turkey and that will lead to a depression that will make the ’30’s look like a picnic.  When you think about it, that is an awful set of choices.”

- John Embry, via a King World News Interview

Read the full interview here:


What is Bitcoin?

Startups: Gavin Andresen and Amir Taaki, Bitcoin - The NEW Currency

This is absolutely mind blowing, watch this and grasp its meaning. I will be posting much, much more to do with this in the future. It takes the power of money out of the governments hands and puts it back into the hands of the people.

COMEX Registered Silver Bullion Inventories Fall Sharp 38.5% in Two Weeks – Risk of COMEX Silver Default Remains

Spot gold and silver prices rose slightly again this morning after hitting a one-month high yesterday as equity markets internationally came under selling pressure. The Moody's downgrade of Greece and worryingly poor US economic data again pushed investors to seek the safe haven of bullion. Gold reached new record nominal highs in sterling yesterday (£945.62/oz) as the pound fell on concerns about the UK economy. The supply situation in the silver market gets more interesting by the day. Registered COMEX silver inventories have fallen to multiyear lows at 29,631,268 ounces. In the last 5 days they fell from 32,132,903 ounces to Tuesday’s holdings of 29,631,268 ounces. As can be seen in the table below registered silver inventories fell every single day last week leading to a sharp fall of 8.4% in 5 days. Registered silver inventories are down a sharp 38.5% in just two weeks – from 41,044,280 to 29,631,268. The possibility of an attempted cornering of the silver market through buying and taking delivery of physical bullion remains real. However it would be very difficult to corner the silver market due to the very small nature of the silver bullion market. A COMEX default remains a risk as does a massive short squeeze which could see silver surge as it did in the 1970s and again recently leading to silver targeting the inflation adjusted record high of $140/oz. 

- Read the full story here: