Jim,
While there has been much discussion about China remaining on the Iran oil sanctions list while seven other countries have been taken off, I believe Japan and the PIIGS still remain on the list. I believe Iran is still providing very generous vendor financing on its oil, i.e. 45-60 days from the day of shipment.
The next round of the Greek elections is this Sunday and the oil sanctions go into effect on 07/01. The US and the EU are playing a very high-level game of poker with Iranian oil which some of their allies (Japan and the PIIGS) desperately need and which Saudi Arabia cannot produce. With China signaling that it will not blink, Iran will not blink. Have to believe the US and the EU will have to blink to keep the economies of the PIIGS and Japan from collapsing due to lack of oil. I think this is another nail in the end of the petro dollar coffin and very Au and Ag positive.
Any thoughts?
Craig
Craig,
This is the most serious political and economic situation the West has ever faced all at one time.
Don’t forget Syria pits us against Russia in arms. The West wants to bomb Syria so bad you can hear the explosions already.
My feeling is simply that the end is not near, but it is here. There
is no going back to good old times. The music has stopped and the chairs
are full. The West is standing politically and economically right here
and right now.
Regards,
Jim
Jim
LISTEN NOW – Stock Market is a Farce, We’re at the End Game, Gold, Miners & More – Bill Fleckenstein
Bill Fleckenstein: President of Fleckenstein Capital – Bill also
writes a popular column ‘Contrarian Chronicles’ for MSN Money as well as
the daily Market Rap column for his Web site at Fleckenstein Capital.
He is often quoted in both national and international media. Bill has
appeared at one time or another in virtually all financial media
including Bloomberg, CNBC, The New York Times, MSN, Marketwatch,
Barron’s and more. Bill is a highly sought after speaker, successful
author of “Greenspan’s Bubbles” and has been in the financial sector for
over 25 years. LISTEN NOW @ KingWorldNews.com
from John Galt FLA:
The reports of capital controls being implemented should Greece leave
the Eurozone have been flying throughout the internet over the last
twenty-four hours, leaving many to wonder if the European Union is about
to descend into the status of a large latte sipping banana republic.
Switzerland’s central bank (SCB) is already rumored to have a plan in
place to freeze all incoming funds at their borders and penalize anyone
attempting to convert deteriorating Euros into Swiss Francs along with
currency exchange controls (See ZeroHedge, Bruce Krasting’s May 28th article – Capital Controls Coming to Greece and Switzerland).
The problem with this approach is the large underground economy which
it creates and unfortunately for the nation of Greece, that has already
begun.
The concerns of the ongoing bank run by depositors in Greek banks have created the basis for a second leg of the domestic financial crisis which will collapse the system if the elections result in a conflict with the Troika and ECB regarding aid to the Greek financial system and potential default.
Read More @ JohnGaltFLA.com
The reports of capital controls being implemented should Greece leave
the Eurozone have been flying throughout the internet over the last
twenty-four hours, leaving many to wonder if the European Union is about
to descend into the status of a large latte sipping banana republic.
Switzerland’s central bank (SCB) is already rumored to have a plan in
place to freeze all incoming funds at their borders and penalize anyone
attempting to convert deteriorating Euros into Swiss Francs along with
currency exchange controls (See ZeroHedge, Bruce Krasting’s May 28th article – Capital Controls Coming to Greece and Switzerland).
The problem with this approach is the large underground economy which
it creates and unfortunately for the nation of Greece, that has already
begun.The concerns of the ongoing bank run by depositors in Greek banks have created the basis for a second leg of the domestic financial crisis which will collapse the system if the elections result in a conflict with the Troika and ECB regarding aid to the Greek financial system and potential default.
Read More @ JohnGaltFLA.com
Did Fitch Just End Europe's Hope For LTRO3?
While it will come as no surprise to ZeroHedge readers (as we discussed why LTRO3 is not coming here and here), it would appear that the ability to turn worthless assets into useful liquidity via a raft of collateralized lending operations with the ECB is at an end. As Fitch's, MD of financial institutions Bridget Gandy just confirmed: "Some
of the European banks are becoming short on collateral to pledge with
the ECB, unless they can delever and sell some of their assets, which
is difficult." Of course this means the banks that need the
facilities the most are now in dire need to sell assets and delever
further exaggerating the vicious circle in Europe's symbiotic
banking-sovereign relationship. Without postable collateral, there can
be no more help from the ECB to the banks and thus any further banking
system help will further subordinate the sovereign (hence our call to swap into non-local law bonds) since it will necessarily need to be funneled through them (a la Spain). Once more the ball ends up in Bernanke's lap.
from AP:
The European Commission has been providing legal advice to others who
are considering possible scenarios should Greece leave the euro, a
European Union spokesman said.
Olivier Bailly said Tuesday that, legally, limits could be
imposed on movement of people and money across national borders within
the EU if it’s necessary to protect public order or public security — but not on economic grounds.
“Some people are working on scenarios,” he said, but refused to confirm or identify which organizations and people were working on them.
Source @ AP
On Debt Ceilings, Fiscal Cliffs, And Krugman's Deficit Debacle
With all the buzz about the 'Fiscal Cliff' – that toxic combination of tax increases and spending cuts due to take hold in a few months – the subject of ongoing Federal budget deficits has fallen by the wayside. ConvergEx's Nic Colas believes that’s a temporary phenomenon,
for Congress will have to hammer out agreements to raise the debt
ceiling right alongside its negotiations over the 'Cliff' items. His
back-of-the-envelope attempt to quantify how much a multi-year debt
limit increase would run to take this burdensome legislative issue off
the Congressional docket for 5, 10 or even 20 years is worrisome at
best with a $3.4 trillion for the 5-year runway, but this assumes a high
level of incremental taxation. The number could be as high as $4.5
trillion. As for the longer time horizon debt runways, think in terms
of an incremental $6.5 -9.5 billion for a 10 and 20 year horizon. And
without significant changes to taxes and/or spending, more. Much more. We cannot help but think about Paul Krugman as we ponder these numbers. His recent book, End this Depression Now, proposes that “A
quick, strong recovery is just one step away, if our leaders can find
the intellectual clarity and political will to end this depression
now.” This “One step” is deficit spending that is orders of magnitude greater than anything spent already. We
have no idea if he really believes any of this, since it is
politically impossible, but he does have a Nobel (though so did the guys
at LTCM).
While it will come as no surprise to ZeroHedge readers (as we discussed why LTRO3 is not coming here and here), it would appear that the ability to turn worthless assets into useful liquidity via a raft of collateralized lending operations with the ECB is at an end. As Fitch's, MD of financial institutions Bridget Gandy just confirmed: "Some
of the European banks are becoming short on collateral to pledge with
the ECB, unless they can delever and sell some of their assets, which
is difficult." Of course this means the banks that need the
facilities the most are now in dire need to sell assets and delever
further exaggerating the vicious circle in Europe's symbiotic
banking-sovereign relationship. Without postable collateral, there can
be no more help from the ECB to the banks and thus any further banking
system help will further subordinate the sovereign (hence our call to swap into non-local law bonds) since it will necessarily need to be funneled through them (a la Spain). Once more the ball ends up in Bernanke's lap.
from AP:
The European Commission has been providing legal advice to others who are considering possible scenarios should Greece leave the euro, a European Union spokesman said.
Olivier Bailly said Tuesday that, legally, limits could be imposed on movement of people and money across national borders within the EU if it’s necessary to protect public order or public security — but not on economic grounds.
“Some people are working on scenarios,” he said, but refused to confirm or identify which organizations and people were working on them.
Source @ AP
With all the buzz about the 'Fiscal Cliff' – that toxic combination of tax increases and spending cuts due to take hold in a few months – the subject of ongoing Federal budget deficits has fallen by the wayside. ConvergEx's Nic Colas believes that’s a temporary phenomenon,
for Congress will have to hammer out agreements to raise the debt
ceiling right alongside its negotiations over the 'Cliff' items. His
back-of-the-envelope attempt to quantify how much a multi-year debt
limit increase would run to take this burdensome legislative issue off
the Congressional docket for 5, 10 or even 20 years is worrisome at
best with a $3.4 trillion for the 5-year runway, but this assumes a high
level of incremental taxation. The number could be as high as $4.5
trillion. As for the longer time horizon debt runways, think in terms
of an incremental $6.5 -9.5 billion for a 10 and 20 year horizon. And
without significant changes to taxes and/or spending, more. Much more. We cannot help but think about Paul Krugman as we ponder these numbers. His recent book, End this Depression Now, proposes that “A
quick, strong recovery is just one step away, if our leaders can find
the intellectual clarity and political will to end this depression
now.” This “One step” is deficit spending that is orders of magnitude greater than anything spent already. We
have no idea if he really believes any of this, since it is
politically impossible, but he does have a Nobel (though so did the guys
at LTCM).
The European Commission has been providing legal advice to others who are considering possible scenarios should Greece leave the euro, a European Union spokesman said.
Olivier Bailly said Tuesday that, legally, limits could be imposed on movement of people and money across national borders within the EU if it’s necessary to protect public order or public security — but not on economic grounds.
“Some people are working on scenarios,” he said, but refused to confirm or identify which organizations and people were working on them.
Source @ AP
On Debt Ceilings, Fiscal Cliffs, And Krugman's Deficit Debacle
With all the buzz about the 'Fiscal Cliff' – that toxic combination of tax increases and spending cuts due to take hold in a few months – the subject of ongoing Federal budget deficits has fallen by the wayside. ConvergEx's Nic Colas believes that’s a temporary phenomenon,
for Congress will have to hammer out agreements to raise the debt
ceiling right alongside its negotiations over the 'Cliff' items. His
back-of-the-envelope attempt to quantify how much a multi-year debt
limit increase would run to take this burdensome legislative issue off
the Congressional docket for 5, 10 or even 20 years is worrisome at
best with a $3.4 trillion for the 5-year runway, but this assumes a high
level of incremental taxation. The number could be as high as $4.5
trillion. As for the longer time horizon debt runways, think in terms
of an incremental $6.5 -9.5 billion for a 10 and 20 year horizon. And
without significant changes to taxes and/or spending, more. Much more. We cannot help but think about Paul Krugman as we ponder these numbers. His recent book, End this Depression Now, proposes that “A
quick, strong recovery is just one step away, if our leaders can find
the intellectual clarity and political will to end this depression
now.” This “One step” is deficit spending that is orders of magnitude greater than anything spent already. We
have no idea if he really believes any of this, since it is
politically impossible, but he does have a Nobel (though so did the guys
at LTCM).Biderman On Central Banks: "In The End, They Will Get What They Deserve"
"We
live in interesting times" is the understated introduction to one of
Charles Biderman (of TrimTabs) more concerning and stunned rants. With
the value of all stocks still around double the 2009 lows yet today's
incomes are barely growing, and realistically - with all the headwinds
we face - there is no hope for rapid growth in wages & salaries
anytime soon, the avuncular analyst feels the need to warn all that
"stock prices are due to plunge". Following a little stock market
history, Charles notes that while wages and salaries in the US have quadrupled over the past 30 years, the value of all US stocks has risen 18 times.
In 1982, stocks relative to wages & salaries were 0.6-to-1 and now
the ratio is north of 2.6-to-1. This is explained by an interesting
discussion of the excess wage growth over spending argument (once basic
human needs are met - and a bigger house) which prompts a brief
interlude on wages & salaries as 'the' trim-tab (marginal mover) for
stocks. Implicitly then, "How can stock markets be this high if the real economy is barely growing?" - the obvious answer is Central banks are tying to solve all the world's problems via the printing press
and as the Bay-Area bad-boy notes, the central banks may be the largest
market participant but they are not the only one and in the end "they will get what they deserve" as stocks drop to 2009 lows.Ahead Of Tomorrow's Dimon Hearing, Presenting JP Morgan's 93.5% Historical Winning Trade Perfection
We
are just about 16 hours away from Jamie Dimon's sworn testimony before
the Senate Banking Committee, which even has the theatrical name: "A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase?"
Will anyone learn anything? Of course not: Jamie Dimon has been
well-schooled in not disclosing critical trading information, and will
certainly use the "proprietary position" and "more shareholder losses"
excuse for any directed question asking how big the JPM CIO loss has
become. Because while the hearing could have been
productive, if indeed its purpose was to seek to prevent future massive
losses of scale such as the suffered by the JPM prop trading unit and
its hundreds of billions in CDS notional position, the last thing anyone
will care about tomorrow is market efficiency and actual regulation.
First and foremost: grandstanding and posturing, in the case of the politicians, and not disclosing anything, without saying too many "I don't recall"s
in the case of Dimon. Which is why we have little hope to get anything
out of tomorrow's formulaic 2 hours of largely meaningless droning.
That said, considering we have already covered the topic of the JPM
loss from a mechanistic standpoint more than any other media outlet,
there is one more chart we would like to share with readers.We The Sheeplez... is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
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Jamie Dimon's Complete Senate Testimony
Presenting
JPMorgan's CEO Jamie Dimon's prepared remarks for tomorrow's debacle:
The truth, the whole truth, and nothing but the totally unvarnished
version of the truth that will fulfill Jamie Dimon's obligations to sit
through a few hours of snide remarks, condescension, and bating. It
does seem however that our initial perspective on this being a systemic
risk hedge (i.e. a 'delta-hedged' senior tranche position as opposed
to some easily managed and understood pairs trade) that rapidly grew
out of control due to risk control inadequacies, is absolutely correct -
though we suspect that is as close to the real truth anyone will ever
get.From Capital To Salary Control: France To Cap State-Owned Company Executive Pay
At this point there is no longer a point in commenting the daily insanity coming out of Europe. Central planning everywhere, in everything and for everyone.- FRANCE TO LIMIT EXECUTIVE PAY TO 20 TIMES LOWEST SALARY: FIGARO
- FRANCE TO CURB PAY OF HEADS OF STATE-OWNED COS., FIGARO REPORTS
- ECONOMY MINISTRY TO ANNOUNCE DECISION TOMORROW, FIGARO SAYS
- FRENCH PAY CURB AT COS. WITH GOVT MAJORITY STAKE, FIGARO SAYS
Spanish 10 yr bond yield rises to 6.71%/Italian 10 yr bond crosses the 6% barrier and closes at 6.17%.
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 4 hours ago
Good
evening Ladies and Gentlemen:
The price of gold advanced today as the USA decided that risks were on
and thus commodity prices
rose as did all bourses once Europe was finished. The price of gold
finished the comex session at $16
at $1612.70 for a gain of $17.20 Silver advanced up 34 cents to $28.94.
The only news of critical importance comes from Europe where today the
Spanish bond 10"Why Would Politicians Allow The Free Market To Work And Expect To Be Re-elected?"
Between
discussions of gold-backed debt issuance in Europe (from Rick
Santelli) and why Europe's problem is not merely a banking crisis but
far worse (with the need for large-scale default and deleveraging as
opposed to constant political intervention to makes things worse -
quoting our earlier note on Italy's insanity), Michael Pento asks, rhetorically we pre-supposed: "What is wrong with letting the free markets work here?
Let's let what is going to happen, happen!" But Bill Griffeth provides
the truth-quote-of-the-day (in a stunning kimono-opening for the
CNBC-watching public at large) when he opines on Pento's question that "There is not a single politician who hopes to let the free markets work and be reelected."Indeed - as Santelli adds: "You Nailed It!"
Markets Dead Cat Bounce Back To Friday's Close
Reasonable
volume but decidedly low average trade size suggests today creep
higher (and late-day acceleration) to Friday's closing level for stocks
and bonds was more dead-cat-bounce (DCB) than BTFD. Treasuries
sold off notably but in context merely retraced 50% of the high yield to
low yield range from yesterday. S&P 500 e-mini futures (ES) also
retraced perfectly 50% of the high to low swing of yesterday and closed
almost to the tick at Friday's closing price. The USD drifted
very gently lower today (-0.08% from Friday) on Cable strength (GBP)
and the ubiquitous post European-close rally in EURUSD. The late-day
AUD strength was probably the most notable (just what ES needed to get
the correlation-driven asset up to unch for the week). Oil bounced
ebulliently off its disaster lows of yesterday with WTI now only -0.8%
from Friday as Gold, Silver, and Copper are up around 1.5% on the week
(though gold lagged a little today). High beta equity outperformed -
Materials, Industrials, and Financials up 1.5-1.8% as the major financials managed decent bounces - though all remain weaker than yesterday's open.
Notably JPM's stock popped 3% while its CDS drifted wider still ahead
of Dimon's denouement tomorrow. Equities outperformed credit today once
again but IG and HY did rally/squeeze into the close - though remain
cheap/wide to stock's exuberance. VIX stumbled about 1.5 vols but
remains above 22% as cross-asset-class correlations fell
notably into the European close but picked up in the afternoon as
risk-assets in general led stocks higher - rather surprisingly syncing to fair-value at the close.Bill Ackman Says Was Approached By PE Firm To LBO J.C. Penney Two Years Ago
An interesting tidbit from Pershing Square's just released quarterly letter: "When we first announced our stake in JCP, the stock price increased to the low $30s per share. Shortly after announcing our stake, we were approached by one of the most well-respected private equity funds in the world who expressed an interest in acquiring the company at a substantial premium. While we welcomed this fund as an owner of the stock, we had no interest in selling the company for a quick premium because we believe in the long-term value creation opportunity."
by Charles Hugh Smith, Of Two Minds:
Incentivize debt and you create multiple overlapping death spirals.Incentivize debt and you create multiple overlapping death spirals.
The incentives to take on debt are so ubiquitous that we underestimate their pernicious power to trigger self-destructive behavior. Want to go to college? Just borrow the money now, with no payments until you graduate. Need some consumerist-retail therapy to lift your sagging spirits? Just use plastic, and pay for the splurge later. Want to buy a house? Hey, the interest on that 30-year mortgage is all tax deductible. It’s crazy to pay taxes when there’s a big fat deduction for mortgage interest.
This same set of incentives works on a national and global scale, too. Put yourself in the shoes of the typical spineless, campaign-donation-dependent politico whose primary obsession in life is clinging to power via winning the next election. Every heavy-weight constituency is protesting any tiny reduction in their share of the Federal swag, so drastic cuts are out of the question. What’s the only painless option? Borrow $1.5 trillion every year to make sure the swag is fully funded and the restive constituencies are quieted for another election cycle.
Read More @ OfTwoMinds.com
by Madison Ruppert, Activist Post
The behemoth Department of Homeland Security (DHS)
is seeking up to 7,000 select fire (meaning that they are capable of
both semi-automatic and automatic fire) 5.56x45mm North Atlantic Treaty
Organization (NATO) personal defense weapons (PDWs) on top of the hundreds of millions of hollow point rounds they recently acquired. Unfortunately, the reason for both of these major purchases and the continuing heavy armament of DHS agencies like Immigration and Customs Enforcement (ICE) continues to go unexplained.
The newest weapons order – which was originally posted on June 7, 2012 and has a response date of July 9, 2012 – is for so-called personal defense weapons which would be used in close quarters combat situations when maximum concealment is required.
I find that last part quite interesting, as requiring maximum concealment for a 5.56x45mm NATO weapon is not really a run-of-the-mill request.
Each prospective vendor has been asked to provide to the DHS their weapons, which will be tested at the National Firearms and Tactical Training Unit (NFTTU) in Altoona, Pennsylvania, which is run by ICE.
Read More @ Activist Post
by Paul Joseph Watson, Prison Planet:
European Union apparatchiks are preparing to lockdown Europe following Greece’s exit. From the Associated Press today:
Olivier Bailly said Tuesday that, legally, limits could be imposed on movement of people and money across national borders within the EU if it’s necessary to protect public order or public security — but not on economic grounds.
“Some people are working on scenarios,” he said, but refused to identify individuals or organizations.
EU finance bosses have discussed controlling ATM withdrawals, subjecting the citizens of member states to rigorous border checks, and imposing capital controls “as a worst-case scenario should Athens decide to leave the euro,” Reuters reports.
The banksters are seriously worried about the a second Greek election on June 17 and are working on “contingencies” should a leftist coalition, SYRIZA, win the second election and increase the probability that Greece will ultimately renege on its EU/IMF bailout and dump the euro currency.
SYRIZA is a Greek abbreviation for Coalition of the Radical Left. It is comprised primarily of democratic socialists, green left groups and Maoist, Trotskyist and eurocommunist organizations.
Read More @ PrisonPlanet.com
European Union apparatchiks are preparing to lockdown Europe following Greece’s exit. From the Associated Press today:Olivier Bailly said Tuesday that, legally, limits could be imposed on movement of people and money across national borders within the EU if it’s necessary to protect public order or public security — but not on economic grounds.
“Some people are working on scenarios,” he said, but refused to identify individuals or organizations.
EU finance bosses have discussed controlling ATM withdrawals, subjecting the citizens of member states to rigorous border checks, and imposing capital controls “as a worst-case scenario should Athens decide to leave the euro,” Reuters reports.
The banksters are seriously worried about the a second Greek election on June 17 and are working on “contingencies” should a leftist coalition, SYRIZA, win the second election and increase the probability that Greece will ultimately renege on its EU/IMF bailout and dump the euro currency.
SYRIZA is a Greek abbreviation for Coalition of the Radical Left. It is comprised primarily of democratic socialists, green left groups and Maoist, Trotskyist and eurocommunist organizations.
Read More @ PrisonPlanet.com
from KingWorldNews:
On the heels of a significant rally in stocks, along with gains in gold, silver and oil, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. Leeb told KWN what factor will be moving key markets going forward. But first, here is what Leeb had to say about the situation in Europe: “Spanish bond yields hit record highs, at least since the euro was formed. Investors gave a big thumbs down to this way of bailing out banks or even individual countries. The market still wants a broad based bailout, and the major roadblock there remains Germany.”
Stephen Leeb continues @ KingWorldNews.com
On the heels of a significant rally in stocks, along with gains in gold, silver and oil, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. Leeb told KWN what factor will be moving key markets going forward. But first, here is what Leeb had to say about the situation in Europe: “Spanish bond yields hit record highs, at least since the euro was formed. Investors gave a big thumbs down to this way of bailing out banks or even individual countries. The market still wants a broad based bailout, and the major roadblock there remains Germany.”
Stephen Leeb continues @ KingWorldNews.com
by Mac Slavo, SHTFPlan:
It might be well if you would ask yourself, are you better off than you were four years ago? Is it easier for you to go and buy things in the stores than it was four years ago? Is there more or less unemployment in the country than there was four years ago? Is America as respected throughout the world as it was? Do you feel that our security is as safe, that we’re as strong as we were four years ago?
President Reagan may just as well be speaking to us today.
The answer, as it was in November of 1980, is a resounding NO.
Read More @ SHTFPlan.com
It might be well if you would ask yourself, are you better off than you were four years ago? Is it easier for you to go and buy things in the stores than it was four years ago? Is there more or less unemployment in the country than there was four years ago? Is America as respected throughout the world as it was? Do you feel that our security is as safe, that we’re as strong as we were four years ago?
President Reagan may just as well be speaking to us today.
The answer, as it was in November of 1980, is a resounding NO.
Read More @ SHTFPlan.com
by Greg Hunter, USAWatchdog:
I just have a couple of videos to share with you today. One is about
banking and monetary policy from 12 year-old girl named Victoria
Grant. She is a Canadian that has a firm grasp about what’s really
wrong with the global economy. This video has gotten more than 600,000
views and when you watch it you will know why. The
second video is an oldie but a goodie from silent film star Charlie
Chaplin. It is just three minutes long, and it’s called “One of the most inspirational speeches in recorded history.” I
cannot disagree. I think these two speeches fit nicely together even
though they were given decades apart. I hope you take the time to
watch.
Read More @ USAWatchdog.com
I just have a couple of videos to share with you today. One is about
banking and monetary policy from 12 year-old girl named Victoria
Grant. She is a Canadian that has a firm grasp about what’s really
wrong with the global economy. This video has gotten more than 600,000
views and when you watch it you will know why. The
second video is an oldie but a goodie from silent film star Charlie
Chaplin. It is just three minutes long, and it’s called “One of the most inspirational speeches in recorded history.” I
cannot disagree. I think these two speeches fit nicely together even
though they were given decades apart. I hope you take the time to
watch.Read More @ USAWatchdog.com
By Silver Doctors:
It appears the administration is desperately attempting to undo the
self-inflicted damage caused by its attempt to use the SWIFT system as
an economic weapon…which backfired horribly as Iran began selling its
oil for gold to nations such as India.
The US Monday exempted 7 nations from Iran oil sanctions (translation: please go back to using dollars for Iranian oil rather than gold!!)
Notice that while India, South Korea, South Africa, Turkey, and Taiwan (US allies) are now exempt from the sanctions, China noticeably is not.
This will be as successful as attempting to un-shoot yourself in the foot.
U.S. Exempts Seven Countries From Iran Oil Sanctions
DEBKAfile June 12, 2012, 12:42 AM (GMT+02:00)
The U.S. added Monday seven nations to the list of countries exempted from Iran oil sanctions, Secretary of State Hillary Clinton said.
The countries are India, Malaysia, South Korea, South Africa, Sri Lanka, Turkey and Taiwan. They “have all significantly reduced their volume of crude oil purchases from Iran,” Clinton announced.
China, the leading importer of Iranian crude as of the first half of last year, and Singapore weren’t granted exemptions.
Read More @ SilverDoctors.com
It appears the administration is desperately attempting to undo the
self-inflicted damage caused by its attempt to use the SWIFT system as
an economic weapon…which backfired horribly as Iran began selling its
oil for gold to nations such as India.The US Monday exempted 7 nations from Iran oil sanctions (translation: please go back to using dollars for Iranian oil rather than gold!!)
Notice that while India, South Korea, South Africa, Turkey, and Taiwan (US allies) are now exempt from the sanctions, China noticeably is not.
This will be as successful as attempting to un-shoot yourself in the foot.
U.S. Exempts Seven Countries From Iran Oil Sanctions
DEBKAfile June 12, 2012, 12:42 AM (GMT+02:00)
The U.S. added Monday seven nations to the list of countries exempted from Iran oil sanctions, Secretary of State Hillary Clinton said.
The countries are India, Malaysia, South Korea, South Africa, Sri Lanka, Turkey and Taiwan. They “have all significantly reduced their volume of crude oil purchases from Iran,” Clinton announced.
China, the leading importer of Iranian crude as of the first half of last year, and Singapore weren’t granted exemptions.
Read More @ SilverDoctors.com
by Michael Shedlock, Financial Sense:
Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).
A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.
The above wizards seldom agree with each other because they come from competing schools of wizardry.
Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).
A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.
The above wizards seldom agree with each other because they come from competing schools of wizardry.
Three Schools of Economic Wizardry
- Keynesian School of Fiscal Voodoo and Witchcraft
- Monetarist School of Monetary Voodoo and Witchcraft
- Austrian School of Sound Money, Sound Economic Principles and Common Sense. Read More @ Financial Sense.com
Stewart Thomson, Gold Seek:
1. “Investors are getting tired,” he said. “There’s only so much
plaster you can put on a crumbling wall.” – Jack Ablin, chief investment
officer at Harris Private Bank in Chicago on CNBC news, June 11, 2012
2. Italy is the 3rd largest economy in Europe, and it seems to be next in line to ask for bailout money. Italy is also the largest issuer of government debt in Europe.
3. Institutional analysts feel the European Central Bank needs to come up with a much bigger solution, but it seems unlikely to happen before the Greek election takes place on June 17. A municipal workers’ strike is planned for June 16, and that could delay the entire election. Europe seems to be almost out of control. Gold is always the preferred asset to own when uncertainty becomes the dominant theme.
Read More @ GoldSeek.com
We The Sheeplez... is intended to reflect
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1. “Investors are getting tired,” he said. “There’s only so much
plaster you can put on a crumbling wall.” – Jack Ablin, chief investment
officer at Harris Private Bank in Chicago on CNBC news, June 11, 20122. Italy is the 3rd largest economy in Europe, and it seems to be next in line to ask for bailout money. Italy is also the largest issuer of government debt in Europe.
3. Institutional analysts feel the European Central Bank needs to come up with a much bigger solution, but it seems unlikely to happen before the Greek election takes place on June 17. A municipal workers’ strike is planned for June 16, and that could delay the entire election. Europe seems to be almost out of control. Gold is always the preferred asset to own when uncertainty becomes the dominant theme.
Read More @ GoldSeek.com
from FinancialSurvivalNetwork.com:
Another Monday, another session with “Ranting” Andy Hoffman. The
so-called Spanish Bank Bailout is purely illusionary and isn’t really
happening. Rather, it is an effort to convince the people of the world
that something is being done and that the situation is under control. In
reality, the world economy is being ravaged like a California forest by
a wild fire. They’re pouring all the water they can to put the fire
out, but there’s not enough water in the world to bring it under
control. The fire must run its course, and the best we can hope for is
that once the forest has been burned to the ground, we can try to stop
it from reigniting.
On the subject of ETF’s and whether they’re really holding all the gold they claim to, the Funds have been caught flat-footed with the disclosure that the gold bar held up by CNBC reporter Bob Pisani, during his visit to the GLD vault at an undisclosed location, was actually owned by another ETF, unrelated to GLD. That’s why there’s no substitute for physical gold and silver. Watch the weight, not the price.
CLICK HERE TO LISTEN TO AUDIO
Another Monday, another session with “Ranting” Andy Hoffman. The
so-called Spanish Bank Bailout is purely illusionary and isn’t really
happening. Rather, it is an effort to convince the people of the world
that something is being done and that the situation is under control. In
reality, the world economy is being ravaged like a California forest by
a wild fire. They’re pouring all the water they can to put the fire
out, but there’s not enough water in the world to bring it under
control. The fire must run its course, and the best we can hope for is
that once the forest has been burned to the ground, we can try to stop
it from reigniting.On the subject of ETF’s and whether they’re really holding all the gold they claim to, the Funds have been caught flat-footed with the disclosure that the gold bar held up by CNBC reporter Bob Pisani, during his visit to the GLD vault at an undisclosed location, was actually owned by another ETF, unrelated to GLD. That’s why there’s no substitute for physical gold and silver. Watch the weight, not the price.
CLICK HERE TO LISTEN TO AUDIO
from The Daily Bell:
Is Global Finance a Ponzi Scheme? Ask a Russian Expert … What’s the difference between today’s global finance
system and a Ponzi scheme? This is the question that a 56-year-old
veteran Russian financial scammer has been asking his victims.
Chillingly, he almost has a point … Sergei Mavrodi is one of the most
infamous names in Russia’s recent history. Back in February 1994, amid
the turmoil of the country’s transition to a market economy,
the mathematician organized a Ponzi scheme called MMM … Now he’s back
with an even more audacious endeavor: the honest scam. Last year, he
announced the new project, MMM-2011, by stating boldly that it would be
another Ponzi scheme. “Even if you strictly follow all instructions, you
can still lose,” he wrote on a website describing the project. “Your
‘winnings’ may be withheld without any explanation or reason
whatsoever.” – Bloomberg
Dominant Social Theme: This Mavrodi is an interesting fellow. He wrote, “What is money? … Nothing! Nihil. A phantom. … It is backed by nothing at all and printed by the masters in any quantity, at will.”
Free-Market Analysis: Mavrodi ended up in prison, but when he came out, he started a series of “legal” Ponzi Schemes. They were legal because he admitted to them up front. People invested in them at their own risk. And when they collapsed, people couldn’t claim they’d been tricked. His schemes did collapse but presumably they left him a wealthy man – legally.
Read More @ TheDailyBell.com
Is Global Finance a Ponzi Scheme? Ask a Russian Expert … What’s the difference between today’s global finance
system and a Ponzi scheme? This is the question that a 56-year-old
veteran Russian financial scammer has been asking his victims.
Chillingly, he almost has a point … Sergei Mavrodi is one of the most
infamous names in Russia’s recent history. Back in February 1994, amid
the turmoil of the country’s transition to a market economy,
the mathematician organized a Ponzi scheme called MMM … Now he’s back
with an even more audacious endeavor: the honest scam. Last year, he
announced the new project, MMM-2011, by stating boldly that it would be
another Ponzi scheme. “Even if you strictly follow all instructions, you
can still lose,” he wrote on a website describing the project. “Your
‘winnings’ may be withheld without any explanation or reason
whatsoever.” – BloombergDominant Social Theme: This Mavrodi is an interesting fellow. He wrote, “What is money? … Nothing! Nihil. A phantom. … It is backed by nothing at all and printed by the masters in any quantity, at will.”
Free-Market Analysis: Mavrodi ended up in prison, but when he came out, he started a series of “legal” Ponzi Schemes. They were legal because he admitted to them up front. People invested in them at their own risk. And when they collapsed, people couldn’t claim they’d been tricked. His schemes did collapse but presumably they left him a wealthy man – legally.
Read More @ TheDailyBell.com
from CapitalAccount:
Welcome to Capital Account. The Eurozone debt crisis plot thickens today as Spanish government borrowing costs soared to their highest level since the launch of the Euro. Maybe the bond market agrees with our guest from yesterday that Madrid’s bank bailout ensures Spain is insolvent? Italy is swept up in the mess too, with Italian bond yields leaping up. So with the low-hanging-sentiment fruit seemingly picked, what does this mean for the Euro, the Dollar, and gold?
Welcome to Capital Account. The Eurozone debt crisis plot thickens today as Spanish government borrowing costs soared to their highest level since the launch of the Euro. Maybe the bond market agrees with our guest from yesterday that Madrid’s bank bailout ensures Spain is insolvent? Italy is swept up in the mess too, with Italian bond yields leaping up. So with the low-hanging-sentiment fruit seemingly picked, what does this mean for the Euro, the Dollar, and gold?
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