Rickards sees gold being revalued to $7,000

 

 

Gold will be part of dollar-reserve system's reform, Davies tells CNBC

 

Gene Arensberg: Comex swap dealers cover gold shorts like a big dog

The Problem With The Federal Reserve Policy

Admin at Marc Faber Blog - 47 minutes ago

The problem with the Federal Reserve policy of essentially zero interest rates is that they are essentially throwing money at the system, but they don’t control where the money will flow to. It can flow at some point into commodity-related stocks. It can flow into gold, oil, treasuries, but it doesn’t flow evenly into these assets. In my opinion, the Treasury, the long-dated Treasuries are essentially the short of the century thing here. - *in Bloomberg* *Related ETFs: United States Oil Fund (USO), SPDR Gold ETF (GLD), Energy Select Sector SPDR (ETF) (NYSE:XLE), Market Vectors Etf T... more » 

 

 

 

 

 

Stone McCarthy: "You Don't Get Three Months Of Negative Empire Survey Results Unless You Are In A Recession"

Forgive us while we take another quick and gratuitous look at today's disastrous Empire Index, but we wanted to bring a very important point highlighted by Stone McCarthy: "You usually don't get three straight months of negative results unless you are in a recession (Note: NY Fed historical data only started in July 2001)." SMRA continues: "If that's not bad enough for you, the forward-looking new orders index fell to -7.8 in August, after posting -5.5 in July and -3.6 in June. Not only is the latest reading a new low in the recent string of negative results, it's also the third straight month of contraction." In other words when the NBER finally sits down to look at the disaster that the US economy has been over the past several years, the start of the next re-recession will likely be given as June 2011, oddly enough in a year when every sell side bank predicted that the economy would grow by at least 3.5% by Q4. As for what to expect next, look for the Philly Fed to be the next major leading indicator disappointment, which based on the NY Fed result, will miss Wall Street expectations of a +2.0% increase yet once gain, and which SMRA believes will drop from 3.2 in July to -3.4 in August.

In The News Today

August 14, 2011, at 12:44 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Dear CIGAs,

Here is the deal that increased the USA Debt Ceiling.

Presenting Italy's Violent (Artistically So... For Now) Take On Globalization

They can strike... Or they can create post-modernist art. They appear to have taken the latter approach for now. Once they realize that artistically beheading fictitious clowns (whose burgers cost over $17 in Zurich, thank you stable dollar policy) does not pay the entitlement benefits, the former is next in the queue.

Guest Post: The Market Is Up, So Investors Are Bullish; And Why Eurobonds Won't Work

There is always an element of price action driving investment decisions, but today it seems to have hit unprecedented levels. The relief is palpable. People are getting bullish again, but so many of the bullish comments seem to start with the fact that stocks are up today. There were some investors who were happily long coming into this week, there were even some who were short at the start of last week and turned into bulls at some time last week (hats off to them). What is bizarre is how many people who were nervous longs last week, suddenly feel comfortable. If stocks were down 5% would they still be so bullish? What is driving the bullishness? Stock prices being up, really does seem to be the biggest driver. We are seeing short squeezes in the most liquid asset classes, particularly those used as hedges - CDX indices, BAC CDS, Gold, beaten down ETF's like XLF. Italian and Spanish bond yields are unchanged to a tiny bit higher. That should be watched. Some IG new issues are in the market and are being priced at a large concession to existing bonds. That will put pressure on the real market. With some core real markets not responding as well as some of the hedge markets, I am not convinced the rally will remain persistent, and since so much of bullish sentiment is coming from the rally, that could turn negative quickly.

Citi On The Two Latest European Deus Ex Machinas: The Improbable Swiss Franc Peg Rumor And The Impossible Eurobond Initiative

Today's two, and two only, upside catalysts for this recent nano-volume breakout rally are the expectations of a Eurobond announcement following tomorrow's n^th Merkel+Sark summit. Another expectation is that the SNB will announce any.second.now that it will peg the SNB, an event made virtually impossible as the whole purpose of the recent media PR campaign was to telegraph to the market what the SNB would like to happen, but what will actually not happen in reality (contrary to popular opinion, central banks, when actually doing instead of manipulating, act in total surprise, not in confirmation of leaked rumors). After all why be on the hook for more billions in losses when just spreading rumors achieves the same effect... however briefly. So for those just waiting for tomorrow's headlines which will have no mention of a Eurobond (at least until the next EUR rout), and for the imminent resurgence in the CHF once the market tires of being manipulated by a still completely helpless Philipp Hildebrand, here is Citi's take on both the very much improbable peg and the Eurobond news, which we believe will not happen until the Eurozone is officially on the verge of collapse as that is the very last round in the ECB's bazooka.





The Unfolding EU Crisis

Posted by: Michael Victory

Post date: 08/14/2011 - 09:45

Freedom on funding, shorting, positioning and more. 

 

 

 

 

 

Nuclear Expert: Radioactive Rain-Outs Will Continue For a Year - Even In Western U.S. and Canada

Posted by: George Washington

Post date: 08/15/2011 - 00:26

Can you say giant cover up, kids?  I knew you could ...