Tuesday, September 25, 2012

MUST READ: Is JP Morgan Shorting Paper Metals While Acquiring Massive Physical Stockpiles?

He is absolutely convinced that gold and silver are going MUCH, MUCH higher. He told me last week that with the Fed’s latest “open-ended” QE edict, “The dollar and bond market are done, finished and the bull market in gold is guaranteed!”
from Silver Doctors:
As silver investors are likely aware, leading silver analyst Ted Butler has openly speculated whether JP Morgan’s alleged massive short silver position is held on behalf a client such as the Federal Reserve (with the intent to prop up the dollar by suppressing gold and silver) or the Chinese government (with the intent of acquiring physical gold and silver bullion at a discount due to their massive paper short position on the futures market).
The Doc has long privately wondered whether the bullion banks’ PM short positions could actually be leveraging their own physical bullion accumulation by artificially suppressing the paper futures price.
These thoughts originate in our following of Jim Sinclair, who has always maintained that the bullion banks will be the one’s making the lion’s share of the profits in this great secular gold and silver bull market.   One thing the bullion banksters are not is dumb, and they can see the writing on the wall for the US dollar as well as any SD or ZH reader.
New commentary from a bullion insider who claims to have personally managed the movement of 27 million ounces of gold from HSBC’s vaults into JP Morgan’s seems to substantiate Sinclair’s claims.
Read More @ Silver Doctors



BTFD...(Buy the F**king Dips)...

SILVER EAGLE SALES JUMP 1 MILLION OVER THE WEEKEND

by SRSrocco, Silver Doctors:
Something very interesting took place this weekend.  Silver Eagle Sales jumped a staggering 1 million from friday’s last update!!  According to the US Mint, silver eagle sales were 2,190,000 on Friday 9/24/12.  When they updated their figures on Monday 9/24/12, silver eagle sales stood at 3,125,000.
I have never seen a jump of this kind in silver eagle sales ever.  This also includes the buying during 2011 when the sales of silver eagles hit nearly 40 million.
So far, the sales in Sept are the highest compared to any other month (not including Jan).  At this rate we may see total sales for Sept hit nearly 3-8-4 million.
Read More @ Silver Doctors


How Gold Has Measured Currency Performance…since 1971, when it became a ‘barbarous relic’

by Julian D. W. Phillips, Gold Seek:
In 1971 President Nixon closed the window that allowed U.S. dollars to be sold for gold owned by the U.S. Just before that, the price of gold was $35 an ounce. Since then gold has been called a ‘barbarous relic’, a term used by Keynes, the famous economist.
From that time on, the world’s currencies stood merely on the confidence their governments engendered and the control they exercised over international financial dealings of all kinds. That confidence lasted until 2007 when the credit crunch brought government financing on both sides of the Atlantic into question. Up until now the performance of the underlying value of currencies has hidden these questions as exchange rates are adequately ‘managed’ through swap arrangements to stabilize exchange rate movements to the extent that violent moves don’t happen. But the real value of currencies in terms of their real solvency is now a matter of open debate. As of now, relative to the amount of gold available to markets, the price of gold is the only measure of value that currencies can be held to. We look at that and look at the conditions that are determining the value of currencies now and in the future.
Read More @ GoldSeek.com


On-going currency weakness makes gold’s long-term future even brighter-Newmont CEO

by Dorothy Kosich, MineWeb.com
“Currency is going to dictate the day for gold and that says gold is going to up,” Newmont CEO Richard O’Brien told an international, record gathering of attendees at MINExpo International at the Las Vegas Convention Center Monday.
During a special CEO forum which was the opening session of MINExpo, O’Brien suggested gold was presently trading more like a currency than a commodity.
O’Brien told the audience that investment is the largest growing component of the gold market, currently comprising about 40% of the demand for gold. As more currencies weakens, such as the U.S. dollar and the Euro, O’Brien suggests the current bull market for gold will continue well into the future.
Mine production is actually a miniscule part of overall gold supply, accounting for only 2% of above ground stocks, he said, estimating that a grand total of only 2,900 tonnes of gold will be mined this year.
Read More @ MineWeb.com

CDS Market Begins Trading Imaginary Credit With LIBOR-Style Fixings

We have not been aggressive anti-CDS fanatics in the past - since the ignorance of mainstream media types satisfies that need - as the reality in the credit market is less extreme than many would love it to be. However, the latest move by Markit and its self-aggrandizing dealer owner/clients, to bring names into the high-yield credit index that do not even have CDS trading on them, is simply remarkable. While they will defend the move on the basis that it will force dealers to provide single-name CDS liquidity in three of the high-yield credit markets most-indebted companies (CIT, Charter Comms, and Calpine), the fact is that they are using the liquidity/fungibility of the index to enable risk to be unwound on what is likely bloated balance sheets containing too much of this crap. By imagining (or fixing LIBOR-style) where the CDS would trade, based on where the firms' bonds trade, we worry that the hitherto somewhat liquid source of 'fast' macro-hedging or positioning has become even more manipulable than before - and in the event of a default (or stress/illiquidity event), we can only imagine the law-suits. As the FT notes - all this does is provide more 'arbitrage' opportunities as opposed to real hedging; simply amazing that as with equities - it is now the synthetic indices that run the entire market.



Live Spanish Protestcam

As we observed earlier, Spain, whose YTD expenditures are now nearly 10% greater than last year, has yet to implement any austerity (dear Spanish readers, if your standard of living has gone down it has nothing to do with less government spending, and everything to do with corruption and incompetent politicians). Yet even so, the locals (who at 24% unemployment have quite a bit of free time on their hands) are quite unhappy, and as Art Cashin observed earlier, are "occupying congress" or otherwise indicating their displeasure with the world. Those who wish to follow the major Spanish protest in Madrid, can do so here.



Why Germany Is Going To Exit The Eurozone

It's becoming clear that there is only one sensible solution ahead of us as the Eurozone’s problems evolve: Germany and the other countries suited to a strong currency should leave. If they do, the European Central Bank (ECB) will be free to pursue the easy money policies recommended by Keynesians and monetarists alike. It's increasingly clear that Germany has no option but to behave like any creditor seeking to protect its interests – and do its best to defuse the growing resentment against her from the Eurozone’s debtors. If Germany is to abandon the euro, it has to do so as quickly and elegantly as possible. It must be able to demonstrate that it has no alternative and that it is the best solution for all parties involved. Germany’s politicians know this. For the moment they are frozen in a state of inaction, but there is a general election to concentrate their minds in about a year’s time - and Germany’s electorate is becoming acutely aware of the enormity of the task. It has become obvious to many people from all walks of life in Germany that the euro has done them no good, and, far from reaping benefits, they are actually less wealthy as a result of it.



The #1 Reason Inflation Will Win

by David Galland, Casey Research:
Jeff Clark: I was struck at our summit by how many speakers have come to the same basic conclusions we have – that there’s really no way out of the US debt hole. That has a lot of implications, but first, in your view, how bad is it?
Terry Coxon: It isn’t so bad that you should think of it as the end of the world, but there is a lot of trouble stored up, and I think “no way out” describes the situation accurately. Most of our economic trouble has been built up by government actions to solve past problems, and what they’ve done is to buy time and provide painkillers, but in doing so they’ve made the problems even worse.
Jeff: Why, specifically, is there no way out?
Terry: Let’s start with the Federal Reserve and the money supply. In response to the collapse of the housing bubble and most financial markets in 2008-2009, the Federal Reserve began printing like crazy.
Read More @ CaseyResearch.com


Gold Firm but Unable to Continue through Upside Resistance

Trader Dan at Trader Dan's Market Views - 1 hour ago
Gold is trading firmly today as risk appetite is back on after a bit of a hiccup yesterday. Many investors/traders are growing a bit more sanguine about the impact of any QE program and are still concerned about slowing global economic growth in spite of Central Bank actions to stimulate borrowing and spending. That is leading to more two-sided trade in gold, and in silver I might add, as traders sort out clues to see which direction the economy might be taking. Frankly, I think it is pathetic that we have reached a point in our nation's history that the actions of the Fed have so d... more » 

Empty Promises Are Nothing New

Eric De Groot at Eric De Groot - 2 hours ago
Bob, Why should politicians have exclusive rights to empty promises? This strategy has been used the dawn of empires. Leaders that promised the moon and spend like a drunken sailors stayed in power. That is, until the weight of debt crushes the empire from within while the barbarians cruise the perimeter probing for weakness. Only the names, faces, and the technology used to execute the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]



$35 Billion In Two Year Bonds (aka toilet paper) Price Unchanged From August


Since any debt issued under 3 years during ZIRP (i.e., in perpetuity) is nothing more than a cash for cash exchange, only with the conversion of counterparty risk from unsecured bank obligations (if cash outflow is from deposits) into Uncle Sam exposure, it is no surprise that today's 2 year bond auction was a snoozer. Sure enough, the just auctioned off $35 billion in 2 year bonds came at a nominal yield of 0.273%, precisely where it was last month, with investors getting a nominal yield in the off chance that Bernanke loses all control of the curve and hyperinflation arrives in under 730 days. For now this probability appears minimal. The internals were just as boring. a 3.6 bid to cover, lower than last month's 3.94, and below the TTM average of 3.77. Directs took down 17.5%, Indirects 27.27% and Dealers were stuck holding 55.33% of the same bonds that Bernanke will be selling to them soon too, resulting in a PD inventory in the 1-3 year window near all time highs. And following the balance of this week's auctions, which include a 5 and 7 year bond for a total of $99 billion in gross issuance, net US debt will rise by $46.8 billion, which together with an earlier net addition of $13 billion in debt, will take total US debt to just shy of $16.1 trillion.


Are You Ready? Are You Prepared?

from TF Metals Report:
I fear that war is looming and, with any war, the consequences and outcomes are unpredictable.
Before we get started, please understand my intentions here. This thread is not a political discussion. It is not a religious discussion, either. This is a disaster preparedness discussion.
It’s not about the Jews or the Arabs. It’s not about the Islamists or the Zionists. It’s about the potential inevitability of conflict, the possible implications and reach of such conflict and your preparations for such an event.
Any comments that attempt to hijack this thread into a one-side-bad, one-side-good free-for-all will be deleted. WHY? Because it doesn’t matter what you think. Whether or not the world falls into conflagration will not be decided by your efforts to control this board with your personal geo-political beliefs. We are all simple spectators to these events, yet these same events may have a high likelihood of touching you personally.
Read More @ TF Metals Report.com



Augason Farms Emergency Food Storage Kit - 3 months - 2 people - (Google Affiliate Ad) 


Half Of Americans Making Under $30K Have Less Than $100 In Savings

As we noted earlier, the main reason for the surge in consumer "confidence" in September was the near record surge in sentiment for those making $15,000-$25,000, which soared from 43.5 to 62.4 in the month, the most since April 2009. And whether this was due to their forecast of the future, and expectation that things will get much better, or not, we don't know, what we do know is that half all of those people whose sentiment defined the market tone today, and who may be quite instrumental in the outcome of the upcoming election (per Mitt Romney), have less than $100 in cash savings. Other findings: both males and females reported similar savings patterns, however, 55 percent of Americans with children under the age of 18 reported having less than $800 in emergency savings compared to 42 percent of those without. Findings also reflect disparities across geographic regions, with 60 percent of individuals living in both the Northeast and the West having $800 or more in savings, yet 31 percent of those living in the North Central region reported that they had less than $100. Most importantly, 23% of all Americans have less than $100 in savings to cover any emergency expenses, and 46% have less than $800. One can see why when it comes to the discussion of whether or not financial assets should be taxes, soon 46% may be the new 47%.


Better use that $100.00 and buy yourself some food insurance...
Augason Farms 12-Day Emergency Pail - Emergency Food Storage Kits (Google Affiliate Ad) 


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What Do European Credit Markets Know That Stocks Don't?

Draghi jawboned Zee Germans and rumors of another 'path to fiscal union' were enough to provide equity markets with some ammo to buy-the-dip following the ECB/Buba news that they were lawyering up over the legality of the OMT (and IMF doubting Greece's ability to fund). Rapidly, the high-beta 'options' on Europe - i.e. IBEX, ripped and that dragged stocks into the green across Europe. BUT - while EURUSD also improved (which provided US equity traders with their pre-European-close methadone), European sovereign spreads did not follow the same path of exuberance, Greek bonds tumbled off highs, and European corporate and financial credit spreads cracked wider and kept going in the biggest divergence since Draghi's Dream speech. It seems that post the CDS roll, positioning is becoming a little more nuanced and for sure - credit markets are not buying it...


President Obama Schedules Key Meeting During United Nations Summit… With Whoopi Goldberg

by Mac Slavo, SHTFPlan:

While President Ahmadinejad threatens to eliminate Israel, Prime Minister Benjamin Netanyahu prepares to take unilateral actions against Iranian nuclear facilities, the Chinese deploy a fleet of ships to meet Japan head on in the disputed waters of the South China Sea, protests erupt across the middle east on the heels of the killing of an American ambassador, tens of thousands of people lose their lives in uprisings in Syria, and the global economy teeters on the edge of collapse, the leader of the free world, our President, has refused to meet with any world leaders during the United Nations summit being held in New York this week.
These are, after all, just “bumps in the road.” Nothing but “noise.”
President Obama has chosen instead to meet with Whoopi Goldberg, Barbara Walters, Joy Behar and the rest of the cast at morning talk show The View:

Read More @ SHTFPlan.com


International War Criminal Henry Kissinger Says Luke Rudkowski Is A Sick Person for Questioning Natl’l Security Memorandum 200

from WeAreChange:

Read about National Security Study Memorandum 200 HERE.
NSC advisor Jones: “I take my daily orders from Dr. Kissinger”



DARPA Continues Human Experiments to Create Military Super Soldiers

by Susanne Posel, Occupy Corporatism:
The Defense Advanced Research Projects Agency (DARPA) has a $2 billion yearly budget for research into creating a super solider as well as developing a synthetic police force. Working with the human genome, DARPA hopes to manipulate certain gene expressions. In experimentation, DARPA and the military industrial pharmaceutical complex are using natural abilities that are enhanced through genetic engineering.
Some of the medical feats DARPA would like to enhance are the ability of military soldiers to regrow limbs destroyed in battle.
By eliminating empathy, the Department of Defense (DoD) hopes to “enhance” a soldier’s ability to “kill without care or remorse, shows no fear, can fight battle after battle without fatigue and generally behave more like a machine than a man.”
Scientists are researching the construction of soldiers that feel no pain, terror and do not suffer from fatigue as tests on the wiring of the human brain are furthered by Jonathan Moreno, professor of bioethics at Pennsylvania State University. Moreno is working with the DoD in understanding neuroscience. The Pentagon allocated $400 million to this research.
Read More @ OccupyCorporatism.com


Spanish crisis hurting commodities (again)

from, Gold Money:

Precious metal prices have dipped this morning. No prizes for guessing why: eurozone uncertainty, with increasing doubts among traders as to whether or not Spain will make a formal request for a bailout, and media reports of disagreement between France and Germany as to the best means of dealing with bailed out nations. France is unsurprisingly the good cop to Germany’s bad cop, with French Prime Minister Jean-Marc Ayrault arguing that the Greeks should be given more leeway in meeting budget cut commitments.
The euro slipped under the US$1.29 mark in trading for the first time since the Fed’s QE3 announcement on September 13 – though has since recovered – while the Dollar Index is up 0.27% from Friday’s close and heading back towards 80.00. A rising dollar (and falling US Treasury yields) are generally indicators of “risk off” moves on the part of hedge funds, which coincide with falls in the euro and commodity prices.
Gold has lost around 15 bucks since the start of trading today, with silver down some 60 cents, and once again below $34/oz. Silver should find strong buying support at $33 (if it falls that far). As far as the yellow metal’s concerned, recall James Turk’s interview with Jim Sinclair last summer, and Jim’s highlighting of $1,764 as a key pivot point for gold:
Read More @ GoldMoney.com


Gary Johnson ~ Both Candidates Will Give You A Greater Police State

from RonPaulCC2012 :



How Gold and Silver Provide a Safe Haven in Today’s Troubled World

by Dr. Jeffrey Lewis, Silver Seek:
The reasons for holding precious metals as a relatively safe haven for one’s personal wealth are numerous.
One common investing thesis for buying precious metals is that these intrinsically valuable commodities can hold their value in times of rising price levels. This characteristic can help American savers keep pace with credit expansion and paper currency debasement.
Diversify Out of the Dollar
For example, precious metals can provide a safe haven in terms of the diversification they offer relative to holding U.S. Dollars in cash or Dollar-denominated assets.
Physical gold and silver investments can take up a core position in an investment portfolio since they offer an easy way to have some wealth stashed out of Dollar-denominated assets. These hard assets also provide a viable alternative to holding foreign currencies or foreign equities.
Basically, precious metals allow investors to engage in a new way of thinking, where investment priorities are anchored to real value and permit advance planning for troubled times.
Read More @ SilverSeek.com


The U.S. Government’s SECRET EXPERIMENTS on U.S. Citizens – VERIFIED!

from Prophetic Seer:



The New Great Dictators Are Gaining Momentum In Europe

by Jan Bennink, Testosterone Pit.com:

As far as I can remember I’ve never been afraid of the government. When I was a young upstart protesting military parades with safety pins through my ears, I wasn’t afraid. Even if the place was swarming with soldiers. When I was the bass player in a punk band, the P.A. Splashing Tovs, screaming at all kinds of government injustice, I did not feel unsafe. And in protest rallies against nukes. I never wore a mask or helmet. We laughed at the secret service guys with their moustaches and long coats. It was 1980, not 1984.
Also on the internet, I was never afraid. On Geenstijl.nl, a provocative Dutch opinion blog, on dejaap.nl, or writing for Volkskrant.nl, a leading Dutch newspaper, I never even thought of watching my steps. My 97,000 tweets? I posted them without giving them a second thought. Even when it came to my attention that the Netherlands has the most telephone taps in the world, I did not lose any sleep over it.
In Holland we have article 7. Freedom of the press. Freedom of speech. Censorship is forbidden. You can say and write, sing and film whatever you want. At least I cherish that illusion. You may protest and express whatever opinion you have. As long as you don’t threaten or slander anybody. And as long as you leave the queen alone.
Read More @ TestosteronePit.com

Total Donations over the last 3 1/2 years. approx $165.00 (Thank You).  Donations will help 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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