In Case Of NEW QE, Gold To $1,900-$8,500 Says SocGen

In a previous post we showed how, despite Goldman's best wishes, the market may have just priced itself out of a treat from the Fed tomorrow, and right into a trick. That said, in case the Fed has in fact succumbed to the pleadings of its superiors (read Primary Dealers) and does proceed with some seriously unsterilized dollar mauling, the next question is what is the best hedge. SocGen asked the same, and provided several strategies to take advantage of central planners exhibiting a rare case of Einstein's definition on insanity... over and over. Their "Strategy #1: Bolster Positions In Gold Ahead of QE3." Why? Because once the next round of the gold juggernaut is unleashed, gold may go to anywhere between $1900, just shy of the all time nominal high, and $8500... just a tad higher than the nominal high.

Your EBT Card Has Been Denied... At The Spearmint Rhino

America's welfare state is about to suffer a double whammy of epic proportions. On one hand, extended unemployment benefits are now running out at a pace of 100,000+ per week, as more and more American's lose eligibility for Komrade Samov's 99-week sponsored vacation, meaning millions of Americans heretofore sitting comfortably on their couch playing Call of Duty and collecting $400 a week will now start having to think for a change - never a good thing for any regime that relies on its electorate to be docile as drunk and fat Hindu cows. And now this: "New York would prohibit welfare recipients from spending their tax-funded benefits on cigarettes, alcohol, gambling, and strip clubs under a bill passed overwhelmingly by the state Senate on Tuesday. "I understand that people need food stamps," said Republican Sen. Thomas Libous, a Broome County Republican. "What I don't understand is why they need to go to strip clubs, buy lottery tickets, go to a 'racino' or buy alcohol." Wait, you mean you can't spend other people's money to pay for a lap dance? What crazy form of inhumane austerity is this. And isn't spending taxpayer dollars at the Spearmint Rhino one of the amendments to the post-Obama constitution? But perhaps the scariest implication is that New Yorkers actually do spend their EBT money at the Spearmint Rhino right off the card, being ripped off with the traditional 15% plastic surcharge instead of just paying cash. Now that is really stupid.

Krugman To Colbert: "Ireland Is America's Future If Romney Is President"

Forget turning Japanese, an anxious-looking Paul Krugman appeared on Stephen Colbert last night to hawk his book and suggested that "Ireland is Romney economics in practice". Noting that Obama "inherited a Depression" but has unfortunately not taken us out of it due to a "whole lot of opposition from 'the other guys'". The Kaped Keynesian Krusader went on to note that "a recession is when things are going down but a depression is when things are down" and suggests an Obama campaign slogan "It's Not As Bad As The Great Depression" to which Colbert retorts that electing Romney would seem to be the path to 'ending this depression now'. While Krugman opines that if we would just re-hire all the government workers who have been laid off over the past few years then all would be well in the world, we suspect Colbert is closer to the truth when he comedically adds that "obviously the way to end the real depression is a war in Europe" and while USA is not Greece (or Uganda), it appears we will be Ireland if Romney gets elected.

Spanish 10 year bond yield remains elevated at 7.06%/Italian bonds close at 5.91%/Bruce Krasting and his fellow from Athens/Germany denies the constant rumours of a Eurobond/

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 6 hours ago

 Good evening Ladies and Gentlemen: Yesterday, I was sent for an ultrasound test on my GI tract and they and discovered that my gallbladder was inflamed and I needed surgery immediately.  I waited 8 hours for a surgical room but other emergencies kept coming.  So late in the evening they sent me home with antibiotics and they will try and schedule me as soon as possible. I would like




François Hollande on Collision Course with ... France

Posted by : testosteronepit

Post date: 06/19/2012 - 18:58

“We fear a programmed strangling.”

Public-Private Partnership - Another Phrase for Fascism

The word “privatization” is a loaded term these days.  Unions and big government worshippers scoff at the idea of any public services being in the hands of ruthless, greedy capitalists.  The left has the distorted view that people in the private sector are driven primarily by their desire to cut costs and throw workers out on the street.  To them, government workers are angels sent from heaven to do God’s work. In our world of unceasing centralization of power, lawmakers are finding more deceptive ways to mask their lust for dominance.  Public-private partnerships are the embodiment of what Mussolini dubbed “corporatism;” that is the “merger of state and corporate power.”  Under corporatism, the ruling class is able to expand unbeknownst to the Boobus Americanus and its equivalent in other countries.  The Average Joe still has his wallet forcefully stripped of its contents but now the state’s cronies get to partake in the plunder.  Meanwhile the same big businessmen who benefit from government privilege still maintain their praise for free markets while working with politicians to forcefully subdue their competition. There is actually another, more accurate term for public-private partnerships.  It’s called fascism; plain and simple.

Forget EURIBOR And Basis-Swaps; EUREPO Curve Inversion Signals Major European Funding Stress

It would appear that one-by-one the open-market indications of stress in European funding markets are manipulated to the point of worthlessness. As the provision of unsecured lending is for all intent and purpose finished in Europe, LIBOR is a mirage and even cross-currency basis-swaps (though modestly margined) have lost their 'signal' as MRO/LTRO reduced the term-funding need. However, as recently highlighted by @SoberLook, the EUREPO curve - which measures how much banks have to pay to borrow, when pledging or repo-ing assets, for loans - is not only un-manipulated as of yet but is flashing very bright warning signals that all is absolutely not well in European bank liquidity. The 'signal' that is clear is the inversion of this curve, which means simply that it is significantly more expensive to repo (borrow) in the ultra-short-term than for a much longer-term. This is likely due to the banks' need to fund deposit outflows, thus requiring the banks to 'find' that cash (by 'lending' their assets as security for the loan). The loss from the counterparty bank seizing your collateral if it went broke is far higher over a longer-period and thus there is a very strong preference to only repo overnight relative to 3 months, for instance. This repo curve inversion signals a total lack of trust among European banks (in even the shortest of tenor), no belief in short-term 'bailout effects' lasting more than weeks,  as well as a huge demand for cash (repo) that suggests deposit outflows remain very active.

Who Destroyed The Middle Class? (Part 1)

“Over the last thirty years, the United States has been taken over by an amoral financial oligarchy, and the American dream of opportunity, education, and upward mobility is now largely confined to the top few percent of the population. Federal policy is increasingly dictated by the wealthy, by the financial sector, and by powerful (though sometimes badly mismanaged) industries such as telecommunications, health care, automobiles, and energy. These policies are implemented and praised by these groups’ willing servants, namely the increasingly bought-and-paid-for leadership of America’s political parties, academia, and lobbying industry.” – Charles Ferguson
Once you dig into the details beneath the thin veneer of Bernaysian obfuscation, you realize the corporate mainstream media storyline of middle class decline has a veiled storyline of a powerful, connected 1%, enriched at the expense of the middle class.

The Consequences Of The Rise Of European Nationalism

Nationalism, like any political idea, is a spectrum of views not an absolute. As UBS notes in an interesting article today, the policies of Golden Dawn are not the policies of the True Finns of Finland, or the Freedom Party of Austria. However, there is undoubtedly a trend within the Euro area in favour of those parties that promote nationalistic policies (perhaps defined as the aggressive pursuit of domestic or indigenous interests over regional interests) and this trend raises considerable questions over the future of the Euro. The first and most obvious consequence of a rise of nationalism within the Euro area is that it will make managing the Euro crisis ever more complex to resolve. The other issue that arises from the rise of nationalist parties in the Euro area takes us away from the specifics of the Euro integration. Nationalism very readily turns into prejudice against others. UBS' Paul Donovan adds that the Euro area will work best when it recognises and uses its economic resources (people in this instance) to the best advantage. Festering resentment and nationalism is unlikely to produce that sort of a climate. Given how important it is to restore competitiveness to the Euro area economy, this is not a negligible economic cost.

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A Dollar’s Worth in 1913 Costs $23.52 Today. Thank the Federal Reserve Banksters!

Thanks to Eric G. for this one. According to the Federal Reserve’s own Minneapolis Ninth District website, the U.S. Dollar has been devalued by 2,352% since the Federal Reserve came into existence in 1913. If you feel poorer, it’s because you are. What a Dollar bought then, takes $23.52 – or more than 3 hours of labor at minimum wage – to buy today. You can thank the Banksters.

Major Violent Crime Wave Hits Anti-Gun Cities Across America

from Off Grid Survival:
As crime rates drop around the country, a somewhat predictable but disturbing trend is starting to pop up in big cities across America. In a number of large metropolitan areas throughout the country, where guns are severely restricted, crime is actually increasing. In fact, it’s increasing at a rather alarming rate.
Take the notoriously Anti-Gun city of Chicago, where in the first 6 months of this year the city has already seen over 228 Homicides. Last weekend alone, Fifty-three people were shot; nine of them fatally, in what’s becoming a deadly weekly trend on the streets of Chicago. From Flash Mobs attacking shoppers on Michigan Avenue, to the Gang Violence that’s plaguing the city, Chicago has become more violent than the deadly war zones in the Middle East.
Chicago’s answer to the problem is almost too stupid to believe. This week Chicago is encouraging residents to turn in their guns in exchange for a $100 gift card. The Chicago Police Department is asking residents to get guns out of their homes and turn them in during their annual gun turn-in program, “Don’t Kill a Dream, Save a Life.”
Read More @ OffGridSurvival.com

Volcker Confesses to $2 Trillion Swindle Against the American People

from LaRouche Pac:

We need you to call your congressmen now (lookup here), and demand their support for H.R.1489.
The LaRouche Political Action Committee has learned that former Federal Reserve Board Chairman Paul Volcker is conducting a call-up campaign against the reinstatement of Glass Steagall, arguing that the so-called Volcker Rules are sufficient because they do not “punish” bankers by demanding that they take responsibility for the more than $2 trillion in still-outstanding gambling losses. Under a full return to the FDR Glass Steagall Act, taxpayers would be freed from responsibility for covering the gambling debts of Wall Street, which amount to trillions of dollars that Volcker wants the American people to cover.
Lyndon LaRouche, who has led the campaign to reinstate Glass Steagall ever since the collapse of the trans-Atlantic financial and monetary system beginning in the summer of 2007, sharply denounced the “Volcker attempt to swindle the American people out of $2 trillion plus,” recalling that as Chairman of the Fed in the late 1970s and 80s, Volcker presided over the takedown of the real U.S. economy by driving interest rates up over 20 percent, bankrupting countless farms and businesses.
Volcker’s efforts to kill Glass Steagall, which has been reintroduced into the House of Representatives by Rep. Marcy Kaptur (D-Oh.) as H.R. 1489, with over 65 co-sponsors, were first made public by Rep. Michael Burgess (R-Tex.), during a recent district town hall meeting, at which he told constituents that he would not support Glass Steagall and H.R. 1489 because he had spoken with Volcker and had been told that it was unnecessary because the Volcker Rule was sufficient. It has been further confirmed by top Democratic Party sources that the Volcker calls to pro-Glass Steagall economists and politicians is part of a larger push by the Obama White House to push back against Glass Steagall.
Read More @ LaRouche Pac

Ron Paul: There’s “No Way” I’m Ready to Endorse Romney

from RonPaul2008dotcom:

Faith is wavering in Mario Monti’s ability to fix Italy’s finances

by Ariana Eunjung Cha, The Washington Post:
efore Italians turned to Mario Monti late last year to rescue them, the country’s debt crisis had sent its borrowing costs skyrocketing and the government’s credibility tumbling.
Anxiety eased for a time once Monti took the helm as prime minister, and so did the financial pressures on Italy, the euro zone’s third-largest economy.
But now, seven months after the well-regarded economist Monti was tapped to replace billionaire playboy Silvio Berlusconi, faith in the Italian government is again plummeting — inside and outside the country. And with global investors increasingly squeamish about lending Italy money, the interest rate on government bonds is soaring again, breaching the dangerous 6 percent level on Monday.
Read More @ The Washington Post.com

Big Brother talks back — Is 1984 here?

from RTAmerica:

Richard Russell – Don’t Believe This Rally & Prepare Yourself

from KingWorldNews:
With continued uncertainty in global markets, the Godfather of newsletter writers, Richard Russell, warned, “You can be sure that the bear market will try to make you believe that you should be in this market.” Russell also cautioned that “Money is rushing around the globe in a mad search for income and safety.” Here is what Russell had to say: “I’ve always found that it’s difficult explaining the action of the primary trend to new subscribers. The best way to describe the primary trend is to compare it with the great tide of the ocean. Once the tide turns down (as now) I compare it to a broad irresistible force. It’s a force that can’t be timed or described in detail.”
Richard Russell continues @ KingWorldNews.com

JPMorgan’s Connections to the House Finance Committee

by Cora Currier, Pro Publica:
JPMorgan Chase CEO Jamie Dimon is on Capitol Hill again today, this time to talk to the House Financial Services committee about the bank’s recent multibillion-dollar trading loss. According to his prepared testimony [1], Dimon plans to deliver basically the same [2] remarks he gave the Senate banking committee last week, apologizing but giving few details.
His Senate hearing was hardly a grilling [3]; senators mostly praised him for his “emphasis on continuous quality improvement,” in the words [4] of Senator Jim DeMint, R-S.C.
As we charted last week, JPMorgan happens to have plenty of connections [5] to the Senate committee. The House committee where Dimon is appearing today has its own ties to the bank. Congressmen and staff from the committee have gone to JPMorgan and its lobbying firms. Members have also gotten hefty campaign contributions from the bank’s PACs and employees.
Read More @ ProPublica.org

21 Things to Look For Every Time You Go To a Yard Sale or Thrift Store

from TheSurvivalMom.com:
1. Sterling silver flatware — Even if you can only afford to buy a spoon or a fork at a time, sterling silver is known to have antimicrobial properties. Some people believe that simply using silver flatware as everyday eating utensils can ward off harmful microbes.  Typically, a single piece of silver, such as a spoon, will run about $50.  Buy from reputable sellers, such as established estate sale agents and thrift stores.
2. Survival related reference books — Peruse Amazon lists such as this one and become familiar with titles, authors, and subject areas.  Books about homesteading, gardening skills, primitive camping, wilderness survival, and so much more are very often found for just a couple of dollars, or less.  Other books to look for: Boy Scout manuals, Foxfire books, and issues of Backwoods Home magazines and anthologies.
3. Grain mill — A good mill can run upwards of $300 and more, but it’s not uncommon to find them in yard sales and thrift stores.  Familiarize yourself with good brand names, ask to test the mill with actual wheat (if possible), but otherwise, I’ve found mills in very good condition for less than $50.
Read More @ TheSurvivalMom.com

All Fixed? EU leaders set to announce €750 BILLION Spain and Italy bailout deal

[Ed. Note: They buy worthless bonds, we buy precious physical silver and gold.]
European leaders are poised to announce a 750 billion euro deal to bailout beleaguered Spain and Italy by buying the countries’ debts.
by Robert Winnett, The Telegraph:
Pan-European Government funds are set to be used to buy Spanish and Italian bonds, which have recently hit record highs – in a move which will send a strong signal to financial markets that the German administration is prepared to back its weaker economic neighbours.
Angela Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels.
Francois Hollande, the French President, said: “It will be more on mechanisms that allow us to fight speculation”. The French president said rates paid by Spain and Italy to borrow on debt markets were “unacceptable”.
“We must show a much faster capacity for action,” Mr Hollande said.
Under the proposed deal, two European rescue funds – the 500 billion-euro European Stability Mechanism (ESM) and the 250-billion euro European Financial Stability Facility (EFSF) – will be able to buy bonds issued by beleaguered European countrie
Read More @ Telegraph.co.uk

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