Russian Central Bank To Offer Gold-Backed Loans (Or Why The Spam-Standard Is Coming To An End)

The spam standard is ending. In news that is likely about to throw the mouth-foaming Keynesians in for a perpetual loop, the Russian Central Bank has quietly announced the sneakiest gold confiscation ploy in history. Reuters reports: "Russia's central bank will offer gold-backed loans for up to 90 days at an interest rate of 7 percent, it said in a statement on Friday, expanding its lending facilities for dealing with any future liquidity crunch in the banking system." So let's get this straight: Russia, which has been dumping US bonds with unseen vigor, and which has been buying gold at a record pace, has just offered its citizen the once in a lifetime opportunity to trade in their hard assets for paper in an imploding fiat system, but with promises to make 7% worthless percent. Oh, and when the "liquidity crunch in the banking system" goes away and one hopes to reclaim title to their gold, one will just find that the title certificate was signed by one Linda Greenova, and said title is perpetually lost in Siberian limbo. And while one waits to reclaim said title from robosigning transgressor #1, Bank of USSR, those heavily armed gentlemen in camouflage attire who just broke into your apartment will not wait to reclaim what now rightfully belongs to mother Russia.

TMZ Posts First Picture Of Steve Jobs After Resignation

Our thoughts are with Steve.

Weekly Bull/Bear Recap: August 22-26, 2011

The one stop summary of the key positive and negative events in the past week.

 

 

Guest Post: Boomers - Are Going To Be A Real Drag

Many may scoff at the Fed's report that stock prices will not recover to their 2010 highs until 2027.  The migration of "baby boomers" into retirement, combined with sustained high unemployment, low savings rates and a weak economy, does not bode well for strong financial markets into the future.  While there are many hopes that the economy will recover in spite of the abundance of factors building against it; the reality is that we may be dealing with the "Japanese Experience".

 

Silver - Daily Chart notes

Trader Dan at Trader Dan's Market Views - 29 minutes ago

Silver has thus far held solidly at the intersection of three major chart support levels detailed on the following chart. Horizontal support near $39.50, the 38.2% Fibonacci retracement level of the move from $50 down to $33, and the upsloping trendline created by the price action of ther last 6 weeks. Now the bulls will need to take it through the 50% retracement level once again and keep it ABOVE that level to set it up for another test of overhead resistance near $44. 

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4 Hour Gold Chart

Trader Dan at Trader Dan's Market Views - 36 minutes ago

Trying to explain the reasons for the price action in the markets today is an exercise in futility as there are far too many cross currents at work and far too many hedge fund computers sloshing money all over the place. And this does not even take into account the parasitical HFT crowd. That being said - gold initially dipped a bit lower and came off its best level early in the session as Bernanke's highly anticipated speech turned out to be a dud. Why these guys expected him to come out and announce another round of QE3 escapes me for the reasons we have detailed here on this site... more » 

 

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