we first broke, and which just as we suspected, has promptly become the second coming of MF Global, as at least $200 million has "evaporated." It is thus with little surprise that we find that the first party of interest is none other than JPMorgan, which together with various other banks, will be the target of a subpoena by the PFG trustee. How shocking will it be to find that Dimon's company is once again implicated in this particular episode of monetary vaporization.
I sense we are very close to breaking out from the nine-month correction in gold and silver. The verdict will be in when gold tops $1630 and then $1650. Some analysts are waiting around for gold to cross over $1700 before they tell you to buy, but that’s waiting way too long, in my view.
The world is awash with debt – and with money too. Even more money needs to be “created” (QE) in order to service the debt. By its very nature, money does not like to just sit around; it needs to grow, to make a profit. Whether the money is controlled by a bank or fund manager with huge amounts to invest, or by a regular guy or gal like you with a little to invest, the challenge is the same. Where do I park my money? Where can it go and both be SAFE and earn at least enough to beat inflation? It used to be that if you had lots of extra money you would buy bonds and “clip coupons.” The first time I heard that saying was in the early 1970s. Susan and I were having lunch at the Lincoln Del in St. Louis Park and we were talking with a man sitting at the table next to us.
At some point in our conversation, I asked him, “What do you do for a living?”
He replied, “I clip coupons.” In 1972 you could do that with your money. At that point in my life, I had no idea what a Zero Coupon Bond was, but his statement piqued my interest. Frankly, today, only a fool would be sitting around clipping coupons from 30-year bonds! But you could do it 40 years ago. Times have changed.
Read more @ MilesFranklin.com
UPDATE: China's HSBC PMI came at 49.3 (slightly below the Flash print) but up from last month
The seemingly exuberant levels of the China Manufacturing PMI data when compared to HSBC's Manufacturing PMI have largely disappeared now as the two are the closest together in 9 months. As China's PMI drops to its lowest print in 8 months at 50.1 (less than the expected 50.5), we note that 10 of the 11 sub-indices (including employment and new orders) are all lower and now in contraction mode. Only the Output sub-index remains above 50 (in the if-we-build-it-they-will-come period). New Export Orders also fell notably. Of course having learned their lesson with the unintended consequences of their last major stimulus effort, we suspect the PBoC will be a little more careful with the method to resuscitate this time.
Take Our Guns? Over our Dead Bodies!
The ECB’s Draghi expressed an appreciation for the urgency facing the euro area, but he seems more isolated than he did last week when Merkel and Hollande reiterated their willingness to do what was necessary.
Even though the euro fell more than a 1.5 cents from its pre-weekend high just below $1.24, Spanish bond yields have continued to retreat. The 10-year benchmark is now about 100 bp below the level seen early last week and the 2-year yield is off about 200 bp.
The market is pricing in a resumption of the ECB sovereign bond purchases (SMP). Yet in the past purchases by the ECB did not seem to have much lasting impact as yields and spreads continued to widen after some short-term and mostly limited reaction. The decline in Spanish yields will be tested Thursday just before the ECB meeting when Spain will raise 2.4-3.7 bln euros of 2, 4, and 10 year bonds.
Read More @ AlsoSprachAnalyst.com
There are some indicators that August could bring a sudden demand for physical gold and silver coins and bars. This shift in demand could be strong enough that it would quickly deplete wholesale and retail supplies of bullion-priced products. To the extent that this occurs, that would almost certainly increase demand for the lower-premium pre-1934 U.S. gold coins as happened during the bullion coin buying frenzy in late 2008.
What could spark such a surge in demand that people would even consider purchasing older U.S. gold coins and Morgan and Peace dollars?
My friend Bill Murphy, the chairman of the Gold Anti-Trust Action Committee (www.gata.org) passed along news that in the past three weeks he has received the same information from three independent and usually reliable sources. The news is that the LIBOR scandal investigations that have mostly focused on Barclays bank thus far are expanding.
Read More @ Numismaster.com
Neil Barofsky, author of Bailout and former TARP overseer says that as a Bush appointee and lifelong Democrat, he hoped the Obama administration would stop the power financial institutions wielded in D.C., but instead there was more of the same. “There was almost no noticeable change when it came to the administration when it came to that deference to Wall Street,” Barofsky says.
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Has Mitt Romney given Israel a blank check for war?
So it seemed from the declaration in Jerusalem by his adviser Dan Senor, who all but flashed Israel a green light for war, signaling the Israelis that, if you go, Mitt’s got your back:
“If Israel has to take action on its own in order to stop Iran from developing that capability, the governor would respect that decision.”
“No option would be excluded. Gov. Romney recognizes Israel’s right to defend itself and that it is right for America to stand with it.”
What does “stand with” Israel, if she launches a surprise attack on Iran, mean? Does it mean the United States will guide Israeli planes to their targets and provide bases on their return? Does it mean U.S. air cover while Israeli planes strike Iran?
Read More @ LewRockwell.com
In a rare instance of real journalism, ABC news aired a report on the increasing number of foreign workers being contracted and imported into the United States for the purpose of rebuilding U.S. infrastructure.
Read More @ Activist Post
While this news item out of Iran is technically not a “bullion story”, bank-fraud most definitely is related to why we own bullion, with the latest and most notable example of bank-fraud being the unimaginably huge $350 trillion LIBOR-rigging fraud by the Western banking cabal. With that in mind, let’s note a few facts – and (shall we say) “inconsistencies”?
1) The death sentences in Iran concerned bank-fraud which totaled $2.6 billion in size, or less than 1/100,000th the total size of the LIBOR-fraud.
2) Western governments and their pretend-regulators have demonstrated total unwillingness to do anything to even slow down Western bank fraud – let alone put a halt to it. Indeed the banksters are now proclaiming their fraud to be “too big to fail.”
3) The United States alone among (supposedly) civilized nations continues to engage in “capital punishment”; and has no qualms about executing poor, non-white males in large numbers.
With the addition of those facts, I offer the following open question to readers: how many “death sentences” would the U.S. government need to hand-out for Wall Street fraud, before these banksters decided that crime was no longer a way of life…?
Read More @ SilverGoldBull
After yesterday’s 9 silver inventory movements and 2.5 million ounce withdrawal from Brink’s vaults, inventory volatility continued in COMEX vaults Monday, as another 320,000 ounces were withdrawn from Brink’s, and HSBC adjusted nearly 5,000 ounces out of registered vaults.
While the CME is now reporting inventory levels to 3 decimal places, strangely enough- once again, NO MENTION FROM THE CME OF THE MISSING 1.4 MILLION OUNCES OF REGISTERED SILVER THAT SIMPLY DISAPPEARED IN THE AFTERMATH OF THE MF GLOBAL BANKRUPTCY!
As a strangely coincidental supply turned up in JPMorgan vaults almost simultaneously as the MFGlobal clients phyzz went missing, until the CME provides an update of what happened to this stolen inventory, The Doc will continue to provide the latest available info on this from the CME:
Read More @ Silver Doctors
Pakistan will allow NATO supply convoys to cross its territory into Afghanistan until the end of 2015, one year beyond the deadline for withdrawal of U.S. combat forces there, under an agreement signed Tuesday by U.S. and Pakistani officials.
The pact seems to close, for now, one of the most contentious chapters in the turbulent relationship between Washington and Islamabad, cementing cooperation by Pakistan in winding down the war in Afghanistan, at least in terms of logistical assistance. Washington also has urged Islamabad to step up its participation in the peace process by bringing to the negotiating table militant groups that shelter in Pakistani’s tribal belt and regularly cross the border to attack NATO troops.
The memorandum of understanding signed Tuesday provides the option for both sides to extend the deal in one-year increments beyond Dec. 31, 2015. It would apply to other NATO nations if they sign separate pacts with Pakistan.
Although Pakistan ended its seven-month blockade of NATO supplies in early July, the pact formalizes some key details, including a ban on transporting lethal equipment unless it is meant for Afghan security forces. It also says that Pakistan will provide security for the thousands of container trucks and oil tankers whose routes originate at the port of Karachi.
Read More @ The Washington Post.com
With market participants eagerly awaiting decisions by both the Fed and the ECB, today King World News interviewed 25 year veteran Caesar Bryan over at Gabelli & Company, which has over $31 billion under management. Here is what Ceasar had to say regarding the upcoming central bank meetings and their impact on key markets: “Clearly it’s the week for central banks. The market is waiting to see what the Fed does tomorrow. There is also anticipation as to what action the ECB is going take this week as well. The market will certainly test the European’s resolve. Draghi came out and claimed that they would do whatever it took to save the euro.”
Caesar Bryan continues @ KingWorldNews.com
So far it’s been nothing but hot air and no action from ECB president Mario Draghi after he pledged to do whatever it takes to save the euro.
One of the highly-touted ideas as of late has been a ESM banking license. However, the idea is not really new, and has been shot down repeatedly already. Nonetheless eurocrats like Jean-Claude Juncker, chairman of the eurogroup, keep bringing the idea up as if the answer will change.
It won’t. Bloomberg reports Merkel Allies Harden Opposition to Granting ESM Bank License
German Chancellor Angela Merkel’s coalition rejected granting the permanent euro rescue fund access to European Central Bank liquidity via a banking license, as the Finance Ministry said it saw no need for any such move.
The rules of the European Stability Mechanism don’t provide for refinancing through the ECB, the ministry in Berlin said today in an e-mailed response to questions. The ministry isn’t holding talks on the topic nor are secret meetings taking place on such proposals, it said.
Read More @ GlobalEconomicAnalysis.blogspot.com
I think it’s safe to say with some conviction that in the year of 2012 the concept of survival prepping is NOT an alien one to most Americans. When National Geographic decides there is a viable market for a prepper TV show (no matter how misrepresentative of true preppers it may be), when Walmart starts stocking shelves with long term emergency food storage kits, when survivalism in general becomes one of the few growing business markets in the midst of an otherwise disintegrating economy; you know that the methodology has gone “mainstream”. There is a noticeable and expanding concern amongst Americans that we are, indeed, on the verge of something new and unfortunate.
Is it the big bad hoodoo of the soon to expire Mayan Calendar? For a few, maybe, but for the majority of us, no. That jazz is a carnival sideshow designed to make the prepping culture appear ridiculous. We don’t need to believe in magical prophecies to know that there is a catastrophic road ahead; all we have to do is look at the stark realities of our current circumstances. It does not take much awareness anymore to notice looming fiscal volatility, social unrest, the potential for unrestrained war, and the totalitarian boldness of our government. I’ll take the wrath of Quetzalcoatl any day over the manure storm that is approaching us currently.
With some estimating a count of 3 million prepper families and growing in the U.S., the motto of “beans, bullets, and band-aids” is finding a home amongst legions. However, being closely involved in the survivalist movement during the past six years and speaking with literally thousands of preppers, it has become clear to me that we still have a long journey ahead of us before we can claim true efficiency and mastery.
Read More @ SHTFPlan.com
Welcome to Capital Account. The FOMC’s two day meeting starts today and the ECB will meet later this week, amid the heightened expectations that the central banks are moving toward new actions. But, according to the Wall Street Journal, doubts linger as to whether central banks even have the tools to fix the economic problems they face. A lot of the money the Fed has tried to pump into the economy has wound up right back at the Fed. We will talk to Mike Maloney about what the Fed’s actions mean for the lives of average people.
And Bill Gross, co-founder of PIMCO, wrote that the cult of equity may be dying. However, the cult of inflation may have only just begun. We will talk to Mike Maloney, founder of GoldSilver.com, about the occult.
Also, US home prices rose in May for the fourth month in a row, according to the S&P Case Shiller data out today. We will talk to Mike Maloney, author of “Guide to Investing in Gold and Silver,” and see how this fits in with the other data pointing to a slowdown in the US economy.
One of the elements of Obamacare critics have been most vocal about is the so-called government-sponsored “insurance pools” the law creates. Now that it’s largely been upheld by the U.S. Supreme Court, these pools will soon become a reality.
So what? That’s the basis of the law, to provide insurance for everyone, correct?
Yes, but not necessarily the type of insurance you want. Or that you have now, say, through your employer.
One of the law’s selling points uttered by everyone in the administration paid to defend it, especially the president himself, promised Americans they could keep their current health insurance.
In his Weekly Address on August 15, 2009, Obama said of his health care proposal, “First, no matter what you’ve heard, if you like your doctor or healthcare plan, you can keep it.”
That was then. By July 2012, the administration was singing a different tune, admitting that, “as a practical matter, a majority of group health plans will lose their grandfather status by 2013.”
Read More @ NaturalNews.com