Saturday, October 20, 2012

Jim Sinclair: Cartel Shorts Are a Managed Spread Position, Banks Flipping to Naked Long Will Propel Gold to $12,400!

from Silver Doctors:
The legendary Jim Sinclair has sent an email alert to subscribers in response to a reader inquiring why the bullion banks are short gold and silver.
Sinclair responded with his most in-depth explanation to date stating that the majority of what appears to be short positions is in fact a massive hedge spread which has been systematically used to manage the ascent of gold up from $250 and the USDX down from 1.25 over the past 10 years.
Sinclair states that when the bullion banks sense that gold is ready to explode upwards in price in the final bull move of this bull run, they will flip their spread hedge naked long, reaping the largest gains of anyone in the precious metals sector, and propelling gold to $12,400.
Read More @ Silver Doctors

Central banks’ actions create a catalyst for Gold in Q3

from, Bullion Street:
For gold, as for many other assets, central bank policy announcements and actions in late August and early September created a catalyst for price activity, according to WGC.
In it’s Q3 summary report,WGC said it is critical to note that while gold prices react to monetary policy developments, they are more generally determined by a geographically and thematically broad set of factors.
Central banks announced a continuation of their unconventional monetary policy programmes in Q3. Central banks have numerous rationales for undertaking unconventional monetary policy, including lowering borrowing costs and supporting financial markets.
Read More @

"The Clock Is Running, The Cash Is Almost Gone And Make-Believe Will No Longer Suffice"

Here is the issue of legacy liabilities. Here Germany has been fairly clear. The new ESM fund will not pick up the check and it is up to each country to pay for their own past problems. You may translate this piece of jargon into a “No” to Ireland that the ESM will not pick up the bill for the Irish banks and the same response for Spain. This new German definition puts Portugal, Greece, Spain and Ireland back at square one and effectively closes the door on any further negotiations. While all of this wrangling continues the tone at the summit was no longer the nicey-nice repartee of past meetings. Cyprus needs money, Spain needs money, Portugal probably needs more money and Greece is just about out of money. The summit was held, the meeting is over and the worth of any accomplishments is about at Zero as the only agreement was a plan to have a plan to deal with bank supervision. This is not an inch forward, this is not a millimeter forward; this is quicksand where they are all stuck as both money and time run out as the Socialists scream for alms while the landed gentry, utilizing head fakes and other polite deceptions, refuse to provide it. The clock is running, the cash is almost gone and make-believe will no longer suffice. The crisis phase, in my opinion, has been entered.

Narcissism, Consumerism And The End Of Growth

Japan is the leading-edge of the crumbling model of advanced neoliberal capitalism: that consumerist excess creates wealth, prosperity and happiness. What consumerist excess actually creates is alienation, social atomization, narcissism, and a profound contradiction at the heart of the consumerist-dependent model of "growth": the narcissism that powers consumerist lust and identity is at odds with the demands of the workplace that generates the income needed to consume... The younger generation of workers raised in a consumerist "paradise" are facing an economic stagnation that reduces opportunities to earn the high income needed to fulfill the consumerist demands for status symbols. Given the hopelessness of earning enough to afford the consumerist lifestyle, they have abandoned traditional status symbols such as luxury autos and taken up fashion and media as expressions of consumerism. But the narcissism bred by consumerism has nurtured a kind of emotional isolation and immaturity, what might be called permanent adolescence, which leaves many young people without the tools needed to handle criticism, collaboration and the pressures of the workplace. Narcissism is the result of the consumerist society's relentless focus on the essential project of consumerism, which is "the only self that is real is the self that is purchased and projected.".. The ultimate contradiction in this debt-consumption version of capitalism is this: how can an economy have "endless expansion and growth" when pay and opportunities for secure, high-paying jobs are both relentlessly declining? It cannot. Financialization, consumerist narcissism and the end of growth are inextricably linked.

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A Snapshot Of The Middle Eastern Sectarian Powder Keg

Yesterday's massive car bomb in Lebanon, which killed and wounded dozens including the country's police intelligence chief and has thus been dubbed as the most "high-profile assassination in seven years", confirmed once again that when it comes to regional powder kegs, the middle east is second to none, and is the 21st century equivalent of Eastern Europe. While nobody has claimed responsibility yet for yesterday's brazen attack (although the "agenda-less" media is once again insinuating it is the doing of Syria's leader Bashar al-Assad) one thing is certain: provocations of this nature will continue indefinitely until they escalate into something much more lethal. The reason: the melting pot melange of different sects in Syria and Lebanon, which co-exist in perfectly mutual hatred despite, or rather because of, the artificial political borders imposed between the two countries provides a terrific backdrop to which merely add a spark and watch everything go up in flames. Which also means that those seeking to provoke further military escalation in the region, now that attempts to stoke a conflict between Syria and Turkey have so far failed, will likely look to Lebanon as a new conduit for escalation. . Because remember: as David Rosenberg pointed out yesterday, in a time of record partiasniship, political bickering and lack of consensus, "it may end up taking some sort of a crisis, in the end, to galvanize the two parties to work towards a resolution to the fiscal morass." And that is precisely what the endgame here is: the intention to unify a hopelessly split congress (and senate) behind the patriotic banner of war. It is only a matter of time (but certainly in time to address the Fiscal Cliff).

We Don't Want Your Steenkin' $1, $5, And $10 Dollar Bills

Everyone knows that when it comes to US currency in circulation, the $2 and the $50 bills are rapidly approaching numismatic status due to either the government's unwillingness to print them in sufficient amounts or the general public's unwillingness to accept them as legal Federal Reserve Note tender. What people may not know is how other currency denominations have fared over the years. And as the charts below indicate, the historical government production of various currency denominations may tell us something about actual supply-driven intentions of the Fed and/or upcoming price levels. Because one thing is certain: judging by recent production patterns, the $1, $5 and $10 bills (aka Federal Reserve Notes), all of which saw their lowest production in 30 years in 2010, will soon suffer the fate of the dodo!

Trader Dan on the King World News Metals Wrap

Trader Dan at Trader Dan's Market Views - 5 hours ago
Please click on the following link to listen in to my regular weekly radio interview with Eric King on the KWN Weekly Metals Wrap where we discuss this week's action in the gold and silver markets as well as the mining shares. ** 

Extraordinary Popular Delusions And The 'Madness' Of Bond And Gold Markets

Whether its new-fangled Japanese stocks, hi-tech internet company valuations, multi-colored flowers, or mansions made affordable by criminally lax lending standards, Grant Williams notes that a bubble is a bubble is a bubble; and citing Stein's Law: "If something cannot go on forever; it will stop." In this excellent summary of all things currently (and historically) bubblicious - whether greed-driven or fear-driven - Williams concludes it is never different this time as he addresses the four phases of the classic bubble-wave: smart-money, awareness, mania, blow-off (or crash) and explains how government bonds are set to burst and gold is only just about to enter its mania phase. This far-reaching and entirely accessible presentation is stunning in its clarity and as he notes, while bubbles are always easy to spot ex-ante, understanding how they come about and why they are popped gives the few an opportunity to profit at the expense of the madness of crowds. From tulips to tech-wrecks, and from inflation to insatiable stimulus, the bubble in 'safe-haven flows' that currently exists has all the characteristics of a popular delusion.


There Is Inflation In The System But It’s Not Obvious

Admin at Marc Faber Blog - 13 hours ago
The costs of living have increased for most people and are higher than the official figures. Some economists say that there is little consumer price inflation. But there is, because the money-printing has lifted asset prices like those for luxury property, art, equities or bonds. There is inflation in the system but it’s not obvious. - *in Emerging Markets* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*

The End Is Near (2012)

from TF Metals Report:
Time to bust out this sorry-looking SOB again.
I wasn’t planning on writing anything today but then it dawned on me:
  1. After yesterday, everyone needs a subtle reminder that all is not lost.
  2. Many folks come and go all week and may have missed the general theme.
Once again, my time is short so I’ll keep it simple and to the point. This current pullback/correction is nearly identical in circumstance to the pullback of January 2011. Back then, QE2 had been announced seven weeks earlier and, once the initial, euphoric push into the metals had subsided, priced were raided in order to give The Cartels time to cover some shorts. Both metals saw all of their post-QE gains clawed back over a three-week period. Desperation was in the air. The MOPE was thick with misleading economic statistics and pundits everywhere were proclaiming the death of the metal bull market.
I lived through it and wrote about it on the old “Watchtower” site . Here’s a sample of the mood and tone from that period:
Read More @ TF Metals

Gerald Celente ~ Return Of The Money Changers

from RonPaulCC2012 :

German Industrialist: Insolvency Procrastination And How To Confront The Coming Inflation

from Testosterone
It was a blatant act of fear mongering just before the EU Summit: if Greece were allowed to default and exit the Eurozone, it could trigger the exits of Portugal, Spain, and Italy, which, in a worst-case scenario, could cost the world economy €17.2 trillion in economic growth. “Hence it is incumbent upon the community of nations to prevent Greece from a sovereign default as well as leaving the euro, and the domino effect that this event could induce,” the study urged.
The study was commissioned by the politically powerful Bertelsmann Foundation, which owns 77.6% of Bertlesmann SE & Co., a multinational media company based in Germany. The foundation is known for its agenda—now including the doctrine that taxpayers must always bail out certain bondholders in order to prop up confidence in the financial markets.
“Insolvency procrastination” is how a quintessential German industrialist responded. And if after Greece’s exit, the whole Eurozone dissolved? “To throw good money after bad is something that normally only over-indebted businesspeople do,” he said. “It’s irresponsible.”
Read More @

Incomprehensible Bullsh!#

from Azizonomics:
The mathematics professor Alan Sokal famously shamed much of the humanities profession by publishing Transgressing the Boundaries: Towards a Transformative Hermeneutics of Quantum Gravity’ a paper intended as ambiguous gobbledegookin the peer-reviewed postmodern cultural studies Journal Social Text in 1996.
Sokal’s paper was a cleverly and artfully constructed piece of trolling. Sokal did it by conforming to the stylistic trappings of postmodernists like Jacques Derrida, Jean Baudrillard and Luce Irigaray — mimicking their dense and obscure verbiage, misusing concepts from science like quantum gravity (of which there exists no widely accepted scientific theory), and shrouding his argument in a great deal of ambiguity. The piece described the notion of a “postmodern science”, one that discarded the notion of objective truth.
Read More @

SOLA 3.12 Monopoly Men

from TruthNeverTold :

Full Story of Brooksley Born’s Attempts to Regulate the Derivatives Market

from Silver Doctors:
In The Warning, veteran FRONTLINE producer Michael Kirk unearths the hidden history of the nation’s worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.
“I didn’t know Brooksley Born,” says former SEC Chairman Arthur Levitt. “I was told that she was irascible, difficult, stubborn, unreasonable.” Levitt explains how the other principals of the Working Group on Financial Markets- former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin — convinced him that Born’s attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was “clearly a mistake.”
Born’s battle behind closed doors was epic, Kirk finds. The members of the President’s Working Group vehemently opposed regulation – especially when proposed by a Washington outsider like Born.
Read More @ Silver Doctors

KWN Weekly Metals Wrap

from KingWorldNews:
The KWN Weekly Metals Wrap – We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my secret weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold and silver market price action.
Bill Haynes and Dan Norcini AUDIO INTERVIEW @

The Good Old Days are Over

by Norse Prepper, SHTFPlan:
Do you remember “the good old days”?  It’s a simple question, but a question that induces different images to different people.  I have found myself spending a lot of time lately thinking of the way things used to be and hoping that someday our country can somehow get back to those days again.  Looking at our current state of affairs in this nation and around the world, there is only one conclusion that can be made…the good old days are over.
I wrote this article because children being born today, in my opinion, will not be able to look back and remember the near future as “the good old days”.  As I write this, the US national debt is at $16.2 trillion with unfunded liabilities of $123.3 trillion.  With Uncle Ben’s QE3 promising to print fiat money perpetually can there be any doubt that the days of the US dollar being the world currency are numbered.  Everyone reading this article has a share of $442,881 of the nation’s debt and liabilities.  If your children or grandchildren can’t read yet, please tell them that they also owe $442,881 as well and thank them for supporting our wasteful spending that got us to this point.  Source:
Read More @

Today’s Items:

Mexico Bans Large Cash Transactions
Mexico has joined other nations on the war on cash. In about 90 days, cash transaction over half million pesos, or about $39,000, will be illegal.   Violation of this law caries a penalty of five years in prison and Mexican prisons are not the country club like prisons in the US.

Is Euro Zone Really Back ‘On Track’?
French President Hollande seems to think that the euro zone is “on track” to solving its crisis during yet another summit.   Greece on fire, Spain and Italy in fiscal turmoil and Germany being asked to bail out everyone.   Yes, the EU is back on track; however, the track leads right over the fiscal cliff.

The Political Black Swan
Just imagine a Bush vs. Gore tie fiasco coming at the same time as a major fiscal cliff.   Things are gearing up for such a scenario in this election where the political wheels will be frozen solid as people fight for the position of head puppet.   On top of that, add the tax increases and the mandatory government spending cuts and one can easily imagine absolute chaos.

American Savings
A recent survey finds that 40% of Americans have less than $500 in savings.   Not all respondents were poor. In fact, some had big houses, big mortgages or 401(k)s; however, they did not have five Benjamin’s to rub together right now.   One should have an emergency fund set aside to address unforeseen circumstances and $500 just does not cut it.   Of course, loss of jobs due to lack of demand is not unforeseen.

First IBM, then Intel, and now Google.   The quarterly statements from these three, and others, are showing that this economy, despite the BS put forth by the mainstream media and politicians, is beginning to grind to a halt.   The only real counterbalance to this negative economic activity is the the fact that the FED is printing money out of thin air.   And that will only last so long before the whole house of cards crashes down.

Congress Orders FEMA to Plan for Mass Fatalities
HR 6566 would amend the Homeland Security Act to mandate that FEMA immediately begin conducting “mass fatality planning” in preparation for a major event or series of events that may kill off untold numbers of people. The bill would set up a FEMA dictator with the power to control how local communities, private businesses, nonprofit organizations, religious organizations, and even individuals prepare for and respond to a mass fatality event.    What do they know folks?

Finally, please prepare now for the escalating economic and social unrest.    Good Day!

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