Greek and Portuguese Bond Contagion/Gold and silver rise/open interest falls.

20 Warning Signs Of A Global Doomsday

Posted by: EconMatters

Post date: 07/06/2011 - 17:48

According to Oxford Analytica, there are fifteen "Global Stress Points" ranging from medium to extreme high impact to the entire world. And hate to disappoint China Bears, it seems whatever problems China has, it is not the one that'll tank the world like the Dollar and Euro. 

Even the Fed's Money Won't Hold the Markets Up Much Longer

Posted by: Phoenix Capital Research

Post date: 07/06/2011 - 16:02

Consider that $10 billion of Fed money today is worth just over half (62%) the market gains of $10 billion in Fed money back in 2009. Put another way, every new injection of $10 billion from the Fed is producing less and less results. If we step back and look at this plainly, we will see that reality does not in any way match the view that the Fed’s liquidity will solve the financial world’s problems. In fact, we see that each Fed move is having a smaller and smaller impact on the financial markets. Extend this idea out a bit further and you find that we will reach a point at which the Fed will no longer have any control over the financial markets.



Harvey Organ, Wednesday, July 6, 2011

Greek and Portuguese Bond Contagion/Gold and silver rise/open interest falls.

Guest Post: The Essential Rules Of Liberty 

For those of us who are awake, and for those who are on the verge of understanding, certain rules come into play that strengthen our stance and shield us from folly. Liberty is not a self perpetuating social condition. It requires guidelines, and effort, and sacrifice. Liberty will not survive without our willingness to maintain it. If you are not ready and willing to fight for your own independence, then you are not truly free. Let’s examine some of the inherent laws and guidelines of free will and free action that will allow us to not only win back our self determination, but to keep it for generations to come. You want liberty? This is what it takes… 

UBS' Andy Lees Presents The Bullish Case For Crude 

By now we have heard every worthless Wall Street economist expound on the bull case for the economy courtesy of a ultrashort-term dip in oil and gas as a result of the moronic IEA decision to tap strategic reserves. And while short-term gyrations are largely irrelevant when as we presented yesterday, and as the FT confirmed, the bulk of volume and price formation comes from speculative daytraders, the longer-term dynamics for crude point in only one direction. Up. Here is UBS Andy Lees to explain why despite the brief jump in crude (which will likely never make it into the system courtesy of banks taking the purchased light sweet crude and storing it in tankers) supplies, we are facing a substantial supply-side crunch as soon as a few months from now. 

Global Tactical Asset Allocation Q3 Update: Commodities 

Industrial commodity bulls may be advised to steer clear of the latest quarterly commodities update by Global Tactical Asset Allocation's Damien Cleusix whose conclusion is that "Most commodities remain deeply overvalued." Specifically, "As with other assets it does not really matter in the short-term (as long as the trend is positive) but it is paramount for longer-term projections. We have little doubts that commodity long-only who buy to hold are going to experience a > 50% drawdown (from current levels) on their industrial metals, crude oil and agricultural positions sometimes in the next 12-18 months." The catalyst: China. "Demand has been artificially boosted by China strategic reserve building, infrastructure intensive fiscal stimulus, booming demand from the rest of emerging economies and, as the trend persisted, by trend followers and money managers new attraction to the sector (you know it is not correlated so you should buy them to diversify your portfolio... sorry it WAS not correlated...). The introduction of physically-based ETFs is not helping in this matter as it represents a big short-term increase in marginal demand especially when the Fed was still busy implementing QE2." Agree or not, the cases for both the up and downside are compelling and well researched, with lots of supporting facts. Much more in the full presentation. 

NOAA Warns Of Widespread Upcoming Flooding, Cautions 2011 Could Rival Great Flood Of 1993 

Don't sell those corn futures just yet. Despite last week's surprising announcement by the USDA that there has been much more expansive planting of corn, and other crops, than expected, which in turn set the price of corn tumbling by the most in years, one thing the USDA did not specify is whether said plantings are currently underwater. And if not now, how about in a week or two. Because according to the National Oceanic and Atmospheric Administration (NOAA) the floods America has experienced so far are nothing compared to what may be coming. "Many rivers in the upper Midwest and northern Plains remain above flood stage, and the threat for more flooding will continue through the summer, forecasters at NOAA’s National Weather Service said today. With rivers running high and soils completely saturated, just a small amount of rain could trigger more flooding, including areas that have already seen major to record flooding. NOAA’s Climate Prediction Center is forecasting above-normal rain in most of these vulnerable areas in the next two weeks, and above-normal rainfall in much of the region in the one- and three-month outlooks. Adding to the flood threat will be the rising temperatures over the Rockies, which will release the water from the remaining snowpack. “The sponge is fully saturated – there is nowhere for any additional water to go,” said Jack Hayes, Ph.D., director of NOAA’s National Weather Service. “While unusual for this time of year, all signs point to the flood threat continuing through summer. Forecasters say this season could rival the Great Flood of 1993, when the upper Midwest endured persistent, record-breaking floods from April through August, impacting nine states and causing more than $25 billion in damages (adjusted for inflation)." If indeed this occurs, look for corn, and other softs, to surge to few all time highs, just in time for the much anticipated collapse in food prices to never happen. 

Litigation Embroiled LPS On The Edge After CEO Quits "For Health Reasons" 

LPS, which together with MERS, has long been at the heart of the fraudclosure scandal courtesy of loan appraisals which even the FDIC claims were/are fraudulent, just fired a big red warning sign about its continued existence as a going concern after the CEO, Jeffrey Carbiener, just announced he is resigning "due to health concerns." Well, everyone knows what that means. From Reuters: "Lender Processing Services Inc (LPS.N) said its Chief Executive Jeffrey Carbiener resigned due to medical reasons and would be replaced in the interim by Lee Kennedy, its executive chairman. The mortgage processing services provider said its board had established a committee to search for a replacement. Kennedy, who was the executive chairman and CEO of LPS's former parent Fidelity National Information Services, will remain the executive chairman, the company said in a statement." Somehow we doubt the market will be too happy with this development, which could well be the beginning of the end for the $1.7 billion company. 

Bidders For 30 Million Barrels Of Strategic Petroleum Reserve Disclosed; JP Morgan Requests $158 Million In Crude 

As was previously disclosed, as part of the SPR's auctioning off of 30 million barrels of light sweet crude, bids for a total of 30.64 million barrels of oil at an average bid of $107.20/barrell were submitted by various parties. The only thing unknown was the identity of the parties, which however has now been all cleared up following the release of the complete bid list from the DOE. Probably the most notable (if not completely expected) discovery is that JPM, that FDIC-insured depositor bank, has requested 1.5 million barrels at a price of $105.33 for a total of $158 million. We wonder just what JPM plans on doing with this crude, which as predicted, will be transported by vessel, and offloaded at such time as JPM sees fit, probably well after the product is trading at a substantial premium to the purchase price. Other potential buyers include Valero, Vitol, Shell, Conoco, Plains and various other E&P companies. Ironically, JPM wants more crude than Sunoco and Tesoro: so next time one tries to gas up their car, we suggest looking for the JP Morgan gas station. But by far the most important news is that 80% of the bid are based on a vessel-based distribution, meaning it will be weeks if not months before the SPR disposed crude finally makes it into circulation, if at all, and has an actual supply-side benefit. Complete bid list is attached.

New Chinese exchange will destroy gold and silver shorts, whistleblower Maguire predicts

 

 

Iranians go for gold amid inflation and currency fears

 

 

ETFs face review by U.K. Serious Fraud Office

 

 

NEW Research Report on Auditing the Treasury’s Gold Stock

Author: goldnews | Filed under: Central Bank News, Political News, Precious Metals News See our newly released report on the status of the Treasury’s gold, the history audits, and what is missing going forward.
Click here to access the report. 

The People Fiddle as the Country Burns

July 6, 2011, at 10:46 am
by Greg Hunter in the category USAWatchdog.com |  Print This Post |  Email This Post

By Greg Hunter’s USAWatchdog.com

Dear CIGAs,

Thank goodness the Casey Anthony case is over!  The jury thinks she is not guilty of murder.  I don’t know if they got right or wrong, but I do know many dollars and much air time was devoted to a story that will have zero effect on the lives of 99.999% of Americans.  I think the discovery of a walking, talking Martian would have gotten about the same attention.  I guess this stuff sells newspapers and gets TV ratings but is sure not what U.S. citizens should be focused on.  Maybe that’s the point.  Are stories like Casey Anthony just our version of a Roman Circus?  Are the masses being kept preoccupied with events that have no bearing on their lives while the country burns in a cloud of debt?  I think so.
Most people have no idea of the perilous position the U.S. is in.   One wrong move by our government or even a government the size of Greece, Portugal, Spain or Italy, and there could be a daisy chain of debt explosions around the globe.  The people are in the dark, and I blame the mainstream media (MSM.)  A story that should have people really terrified is the battle going on in Washington D.C. over raising the debt ceiling some $2.4 trillion dollars.  If the issue is not settled by early August, the U.S. could have the mother of all debt defaults.  The Democrats and Republicans cannot agree on a package that contains both tax increases and budget cuts.  President Obama has called for a “balanced approach.”  Bloomberg reported yesterday, “The Obama administration and congressional leaders are working to complete a deal on a long-term budget reduction package by July 22 as part of a plan to raise the $14.3 trillion debt limit. The Treasury Department has said that its borrowing authority expires Aug. 2 and could result in a first-ever U.S. default on its obligations.  Obama’s comments came as Democrats were intensifying a showdown with Republicans over whether tax increases should be part of a deficit-cutting deal before the Aug. 2 deadline.”  (Click here for the complete Bloomberg report.)
Everyone should be watching this debt ceiling negotiation because, no matter the outcome, it will affect the lives of 99.999% of Americans and many people around the globe.  If a deal is not reached, catastrophic consequences would follow.  In his latest report, economist John Williams from Shadowstats.com said, “Such a default would be a serious mistake, and it most likely will be avoided as political games push the limits of brinksmanship.  An outright default likely would trigger massive dumping of the U.S. dollar, and it would accelerate movement to much higher U.S. inflation and, ultimately, to hyperinflation.”  According to Williams, there are $12 trillion in liquid dollar assets held outside the U.S.  That is where the hyperinflation would come from.
More…

Economic Armageddon and You...Prepare for the Worst...

Jim Sinclair’s Commentary

Here is the entire story. I would suggest spreading the truth to offset the lies.

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