'Gold is the only safe-haven asset that will not do QE, put in capital controls, or complain' 

 

 

Gold Flash

Spot Gold just fell out of bed with a small jolt taking it back to unch from early Friday trading. The move looks eerily similar to last night's 'flash-crash' style dip but recovery is more lackluster for now.

 

 

 

First HFT, Now ETFs: The SEC Slowly Wakes Up From Its Porn Slumber

A few days ago we learned that the SEC was either objectively going after every single HFT shop by demanding frontrunning blueprints, or it was merely pandering to the requirements of GETCO, which is in dire need of eliminating some of its more profitable competitors. Now, the WSJ informs that the same porn-addicted regulators are going after ETFs: yet another market product that the enforcement regulator, in its multi-year long career-enhancement focused hiatus, has totally forgotten about and is finally starting to realize has more of an impact on the market than virtually anything else currently in the trading domain. The skeptics will say that this is nothing but ETF giant Blackrock stretching its wings and making sure it doesn't have to share the spoils of frontrunning war with anyone. Whether that is the case, we will find out soon enough, in the meantime we learn that the SEC is "looking into whether turbocharged exchange-traded funds amplified August's topsy-turvy swings in the stock market." Apparently years, because it is no longer months, after the flash crash, the SEC has realized that the convexity and gamma brought about by HFTs in the ETF space merely adds leverage upon leverage, sending the market into spasms of unnecessary but inevitable bouts of momentum chasing: "SEC officials are zeroing in on "leveraged" ETFs, which amplify investor bets, often through derivatives. Derivatives are financial contracts with values linked to another asset. The funds typically offer double or even triple the return of an index, such as the Standard & Poor's 500-stock index." Soon enough, we dread to think, the SEC may also realize that it has absolutely no clue about market topology and structure, nor how anything actually works in modern markets. But since the response by the midget porn fanatics will take years if not decades, we doubt anyone is too concerned. After all Keynesianism itself has at best one, maybe two summers left. Max.

Guest Post: Frustration with Gold-Silver Analysts; Bottom Line with Junior Explorers and Peak Silver Article Preview

silvergoldsilver at silvergoldsilver - 46 seconds ago

BY: SRSrocco It has been a while since I have done a Guest Post. As I have stated before, I have been extremely busy doing research and putting together graphs on my Peak Silver Update Article to come out in about a week. I truly believe this article will be one that might change how analysts and investors look at silver into the future. It will be my best article written to date and I hope it will wake up those in the industry. My last article on Peak Silver got over 35,000 reads on the Market Oracle. If you look below you can see how my Peak Silver article compares to Jim Willie’... more »

 

 

Ted Butler: The death of liqudity

 

Central banks smashed gold ahead of Swiss devaluation, Davies says

 

 

Gold is leaving other markets behind, Naylor-Leyland tells CNBC Europe

 

James Turk: Mining stocks on the runway, ready for takeoff

In The News Today

September 6, 2011, at 6:31 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

The Swiss take action to cap the franc:

1. Helped strengthen the Cando.

2. After a short period it will fail.

3. Safe haven is being offered to all at a discount to all.

4. Markets rule, not central banks, in a Western world monetary meltdown.

Jim Sinclair’s Commentary

You have to love this place. They might be the only society that really understands OTC derivatives.

Iceland tries ex-premier over collapse September 6 2011 at 10:37pm
Iceland’s former premier, Geir Haarde, yesterday became the first political leader to be tried over the global financial crisis as judges began to decide whether he can be held responsible for the collapse of the country’s banking sector.
Haarde, who has dismissed the case as a farce, was one of four politicians blamed in a report last year for contributing to the country’s stunning economic collapse, when all its major banks failed in a matter of weeks in October 2008.
But parliament voted last September that he was the only one who should be charged with “gross neglect” and he will thus become the first person to go before the Landsdomur, a never-before used special court for current and ex-ministers.
Haarde, who was set to present his third request for a dismissal, said last week that his arguments for throwing out the charges would be published after the hearing.
Haarde insisted the whole trial was “a political farce motivated by some old political enemies who are cloaking this farce under the cover of a political trial”.
More…




Jim Sinclair’s Commentary

From our friends at GATA:

Le Metropole Members,

More Beijing embassy cables show China sees gold as central in currency war Submitted by cpowell on 05:58PM ET Monday, September 5, 2011. Section: Daily Dispatches
9:17p ET Monday, September 5, 2011

Dear Friend of GATA and Gold:

More news media-monitoring cables from the U.S. Embassy in Beijing to the State Department in Washington show that both China’s government and the nation’s financial press, tightly controlled by the government, consider gold to be the main weapon in a world currency war that is under way.
The additional cables, published a few days ago by Wikileaks and located by GATA’s Irish friend R.M., disclose that China thinks that the United States is trying to prevent China’s foreign exchange surplus from being converted into gold because the U.S. and its European allies plan a return to a gold standard that will favor them because they hold most of the world’s gold reserves.
China itself has acknowledged that it is rapidly building its own gold reserves to facilitate international use of its currency, the renminbi.
The citation of the gold-related commentaries by the U.S. embassy cables suggests that China’s acquisition of gold is of great concern to the U.S. government as well.
More…





Jim Sinclair’s Commentary

This has been a well hidden ongoing crisis. The most endangered species is the retiree.

Analysis: Pension funds in new crisis as deficit hole grows By Natsuko Waki | Reuters – Mon, Sep 5, 2011
LONDON (Reuters) – Pension funds in developed economies are facing a new crisis as falling equities and tumbling bond yields widen their deficits, threatening the incomes and retirement dates of future retirees.
At the heart of their problems is a steady move by pension plans in the United States, euro zone, Japan and the UK to cut exposure to risk after the financial crisis.
But this "de-risking" may end up depressing their long-term returns from stock market investment and challenge the conventional wisdom that shares generate higher returns than bonds.
With weaker holdings and increased liabilities, companies will find it more difficult to fund existing pension schemes. They may cut new business investments as they use more cash to pay pensions.
For future pensioners, it means they will potentially face a lower retirement income and a longer working life — or both.
This year has been a nightmare for many in the industry — which controls $35 trillion, or a third of global financial assets — and funding deficits are posting double-digit rises.
More…

Jim’s Mailbox

September 6, 2011, at 6:31 pm
by Jim Sinclair in the category Jim's Mailbox |  Print This Post |  Email This Post

Dear Jim,

Here is another concrete piece of evidence that American jobs are being “exported” to other countries.

CIGA James

Ford building $1bn manufacturing complex in India
AFP – US auto giant Ford has started construction on a $1 billion manufacturing and engineering complex in India as it bets on the country to help drive global growth, a company statement said on Tuesday.
The new manufacturing facilities in Sanand in the western state of Gujarat will create 5,000 jobs, and will be able initially to produce 240,000 vehicles and 270,000 engines a year, Ford said.
The first vehicles and engines are due to come off the line in 2014.
The complex highlights the automaker’s plan “to aggressively grow the Ford brand in India,” said Ford India president Michael Boneham.
More…





Three Taps And Out
CIGA Eric
Three taps and out were completed in the following order: (1) Silver, (2) Gold, and (3) Swiss Franc.
Silver London P.M Fixed and the Silver Diffusion Index (DI)

Gold London P.M Fixed and Gold Diffusion Index (DI)

Swiss Franc (FXF) And Swiss Franc Diffusion Index (DI)


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Dear Lt,

As you have said time and time again, the Western world is screwed. We had a realization by people today after Deutsche Bank’s CEO spoke. The markets took the truth pretty hard, given they have been fed mope for so long.
“Limited” in my translation means not much upside or preservation of value compared to gold! Thanks again for helping us CIGAs prepare for this and future messes!

Best,
CIGA BT.

“As for the rest of the financial industry, things don’t look good.
Here’s what Ackermann sees: “Prospects for the financial sector overall… are rather limited.”
“We have a financial industry that is still not really providing convincing answers to the questions about the meaningfulness of many modern financial products and trading in securities. The questions are getting louder and require new responses.”

Deutsche Bank CEO Just Gave A Terrifying Speech In Frankfurt
Josef Ackermann just gave a terrifying speech about the fragility of the Euro banking sector right now.
At a conference in Frankfurt he said, “It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels.”
We have translated the speech based on Handelsbatt’s, the organizer of the event where Ackermann spoke, account of it.
“In recent weeks, the distrust of the financial markets has spread to the banks because they are now suffering from the debt crisis in Europe and have a lot of exposure to, for example, Greek bonds.”
“Since the financial crisis, some European banks have lost a third or more of their market capitalization,” he said, according to Google Translate.
“Most institutions have a rating of “below the book value or at best.”
More…

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