Greenspan Says Euro ‘Breaking Down’

Eric De Groot at Eric De Groot - 2 hours ago

The Western system is breaking down. One debt/currency and restructure or Euro continues to crumble. Headline: Greenspan Says Euro ‘Breaking Down’ Former Federal Reserve Chairman Alan Greenspan said fissures in Europe’s common currency may lead to slowing in the U.S. economy. “The euro is breaking down and the process of its breaking down is creating very considerable difficulties in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Economist Calls Entitlements A Massive Ponzi Scheme And Says US Is Actually $211 Trillion In Debt

In an interview with NPR, former Reagan economic adviser Laurence Kotlikoff said the U.S.’s "true indebtedness" amounts to $211 trillion.
That’s more than 15 times the $14 trillion official figure.
"We’re focused just on the official debt, so we’re trying to balance the wrong books," Kotlikoff said, naming Social Security, Medicare, and Medicaid for the skyrocketing unofficial figure.
If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap…
Why are these guys thinking about balancing the budget?…They should try and think about our long-term fiscal problems.
His comments were reminiscent of a Bloomberg editorial he wrote last year, where he called entitlements "a massive Ponzi scheme."
From the interview:
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Presenting Goldman's Six Bullet Point Forecast Of Global Policy Intervention To Prevent The Re-Depression

While the bulk of his weekly parable is primarily about the Swiss Franc (certainly worth the read coming from an old FX trader), the subtext is far more nuanced, and as usual, presents what "next steps" will be in terms of policy response from the G-20 to prevent the end of the Status Quo^TM. For all those who ridiculed us about consistently presenting what Goldman believes is in the economy's "best interest", we have only one thing to say: QE3 is coming. Just as Hatzius demanded it several months ago (as predicted by us back in January). Indeed, the instruction flow never errs: from Goldman to the Fed; from the Fed to the SecTres and teleprompter; from theteleprompter  and out of taxpayers' pockets. So speaking of flow charts, here is what the world should expect, tongue in cheek, in terms of G-20 intervention over the next several months, to prevent a swift plunge into the mother of all depressions.  1.    Clear, credible, targeted action from President Obama and Congress to create US jobs and stimulate domestic investment; 2.    If not more QE from the Fed, an ongoing clarity about their bias; 3.    A quick resurrection of a credible budget in Italy; 4.    A move towards an interest rate cut from the ECB. There is no inflation problem and the Euro Area economy has weakened a lot; 5.    Some indication by German Chancellor Merkel that as part of a more fiscally coherent EMU, Germany would accept the principle of Euro Bonds; 6.    A clear signal from Beijing that once inflation has peaked, monetary tightening is finished. In other words: not just more of the same, but much, much more of the same. In yet more other words: insanity defined.

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Expect More 'Shock and Awe' In Gold

Eric De Groot at Eric De Groot - 2 hours ago

The money flows of "smart" and "dumb" money continues to reflect a positive and explosive backdrop for gold. Smart money is increasing their net long position as dumb money reduces them. Gold London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest Not only is smart money covering... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

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Smart Money's Aggressive Short Covering And Quiet Accumulation Implies More 'Shock And Awe' In Gold

Eric De Groot at Eric De Groot - 3 hours ago

The money flows of "smart" and "dumb" money continues to reflect a positive and explosive backdrop for gold. Smart money is increasing their net long position as dumb money reduces them. Gold London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest Not only is smart money covering... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

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Gold & Treasuries

Admin at Marc Faber Blog - 6 hours ago

It would not surprise me to see gold down to 1,600 dollars because recently there has been probably a bit too much enthusiasm. At the same time, what is interesting is that gold in this latest bull market started to rally at the end of June at 1,600 and it went to 1,900. At the same time, treasuries also started to rally. (...) This is in a way very illogical because you would want to be in bonds in a highly deflationary environment, and you would rather want to be in gold in an environment where you think money printing will drive up prices. - *in Bloomberg Radio* *Marc Faber is an... more » 

 

Trader Dan on King World News Weekly Metals Wrap

Trader Dan at Trader Dan's Market Views - 1 day ago

Please click on the following link to listen in to my regular weekly radio interview with Eric King of King World News on the Weekly Metals Wrap. *http://tinyurl.com/3qq62d7* **

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All Hands on Deck..Economy Imploding/DEFCON ONE imminent/gold and silver skyrocket

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 1 day ago

Good morning Ladies and Gentlemen: The USA government released their jobs report and the report showed zero jobs was created. I will discuss the numbers with you in the body of my commentary.First I would like to report that two banks entered the morgue last night taking their last breath before the FDIC entered and pronounced them dead: 1.  Creekside Bank of Woodstock Georgia 2.  Patriot Bank

 




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Gold: 6 Month Outlook

Admin at Marc Faber Blog - 1 day ago

For the next 6 months gold will rather decline than go up. - *in Bloomberg Radio* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*

"Black Friday" - The Great Gold Crash...Of 1869

When one thinks of gold crashes, one typically visualizes a trading floor from the 1980s onward, predicated by Nixon's nixing of Bretton Woods 40 years ago, which removed gold from the list of accepted currencies and converted it into a government-manipulated pariah, whose core function was to be suppressed in an ongoing (failed) attempt to make the dollar the undisputed reserve currency (something even China comprehends). Well, readers may be surprised to discover that one of the first, and probably biggest on a relative basis, documented gold crashes was not 3 weeks ago, nor back in October 2008, nor any time since the advent of Nixon, or even the Federal Reserve, but over 140 years ago, on September 24, 1869 when a massive gold price manipulation scandal created a financial panic. That day, also known as "Black Friday", was the culmination of an attempt to corner the gold market following the latest, however brief, termination of the gold standard, when during the reconstruction period following the US Civil War, the US dollar was backed not by gold, but simply by credit (sound familiar). The result was a surge, and then collapse in gold.

Game Over? Senior IMF Official - "I Expect A Hard Greek Default This Year"

While the US was panicking over a double zero jobs report, things in Europe just fell off a cliff. As both the WSJ and Reuters report, it seems that the second Greek bailout, following repeated and consistent disappointments by Greece which has resolutely refused to comply with the terms of its fiscal austerity program, has just collapsed.And with the US closed on Monday: long a counterbalance to European risk pessimism, this week (especially with the news fro the latest FHFA onslaught against global banks) may just be the one that "it" all comes to a head. But back to Europe, and more specifically Greece, which it now appears is doomed. From the WSJ: "I expect a hard default definitely before March, maybe this year, and it could come with this program review," said a senior IMF economist who is keeping close tabs on the situation. "The chances for a second program are slim." It is not only Greece - Italy also thought it would sneak by with getting quid pro no and continue leeching off of Europe, or specifically Germany, indefinitely, at least until the ECB said that absent Berlusconi taking austerity seriously that implicit ECB support for Italian bonds would be yanked, sending the second most indebted country in the world into a toxic debt tailspin. And so it comes that after 2 years of waffling, Europe finally realizes that the piper always eventually gets paid. Alas, it is now far too late.





I would suggest you either read or re-read this...Today...and Hedge accordingly...

Weimar hyperinflation "When Money Dies" PDF file

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