Today 50-year veteran Art Cashin shocked King World News when he issued the following warning concerning hyperinflation: “I think you are certainly at a ‘flashing yellow alert.’ You have in place a variety of things that could begin to react somewhat domino-like.”
Cashin, who is Director of Floor Operations for UBS ($612 billion under management), also warned, “There are some potentially eerie parallels (today vs the Weimar Germany era).” He also cautioned, “There is a kind of delayed effect (from all of the money printing), and you want to watch very carefully.”
Here is what Cashin had to say: “I can’t believe things are that well managed. There’s a Three Mile Island lurking everywhere, just when you think you have all of this stuff nailed down. I wrote about the Weimar Republic a little earlier this week and one of the notes I pointed out was that even when they were printing money, literally printing, the inflationary spiral didn’t happen instantly.”
Art Cashin Audio Interview @ KingWorldNews.com
While the entire 'developed' world is now openly engaged in destroying the balance sheet of its assorted central banks - the sole means to devalue local currencies, a liability, by accepting ever more toxic 'assets' as currency collateral - thereby pursuing strategies which until now were strictly relegated to the banana republic playbook, there are some countries who see what is coming over the horizon, and refuse to join the printing frenzy. One such place is China, for whom, as we have repeatedly shown the threat of a fast onset of inflation is far greater (3x more bank deposits as a % of GDP than in the US, means a soaring capital market as a result of inflation will benefit far less while a deposit exodus will cause hyperinflationary havoc in minutes) than any other developed world country. And with the inability to hide "non-core" CPI as a result of food and energy being such a greater portion of overall inflationary bean counting than in the US, it means that despite the demands of Tim Geithner for immediate more easing by China, the PBOC is now stuck waiting to import everyone else's inflation: this includes the Fed, ECB, BOE, BOJ, Korea, Australia and all other bank engaged in adding liquidity, while its own hands are quite tied. Because recall that it was only last year that the NYT said that: "Inflation in China Poses Big Threat to Global Trade." Now we are told that lack of inflation poses the same threat, when in reality what they mean is that with the world tapped out, one more source of marginal liquidity is needed. Judging by overnight comments from the PBOC's head Zhou Xiaochuan that liquidity, suddenly so very needed to keep the game of musical chairs going, is not going to come from China just as we have warned for months on end.
Imagine if in 2007, Ben Bernanke, Mervyn King, Jean Claude Trichet et al, had actually possessed the analytical foresight to see what was coming, organised a meeting with the world's media and explained how, using their collective wisdom, they would solve the problem.
How would most people have reacted then? We think they would have laughed out loud. Why are so many of us reacting differently now? The nature of markets is that they periodically forget the lessons of history. Confidence in the status quo seems as entrenched now as it was in 2007 but Gold appears to be exhibiting 'Giffen-like' behavior where, instead of falling, demand is rising as prices rise."There's going to be a massive global crisis, but there's no need to worry. We're just going to print money."
"Is that it?"
Today Bill Fleckenstein told King World News, “I think that we are in a new era, a new regime, in terms of how reckless these central banks are willing to be.” Fleckenstein, who is President of Fleckenstein Capital, also stated, “So we have these out of control central banks, and I think it shocked people that Bernanke was willing to go as far as he was.”
Fleckenstein also discussed gold, but first, here is what he had to say about reckless central banks: “It should be obvious you can’t run a printing press to finance government debts, and it is obvious, but yet they are getting away with it. It is not clear as to when this will end or what will be the catalyst to make it end?”
Bill Fleckenstein continues @ KingWorldNews.com
by David Levenstein, SilverBearCafe.com:
After trading within a hair of $1800 an ounce last week, gold prices have met with some resistance and have pulled back slightly. As the yellow metal struggled to break through this key level of resistance, it notched up new record highs in euros and Swiss Francs. And, in South Africa as the gold price has risen, the Rand fell by around 10% in a month due to the on-going strikes at the various gold and platinum mines as well as general unrest throughout the country. This pushed the prices of Krugerrands on the domestic market to above R16, 000 each for the first time ever.
Although it is evident that we are still in a major bull market in gold, which is unlikely to peak for a long time to come, and despite the fact that South Africa has a long history with gold, having been a major producer for decades, thanks to the local radio and TV business channels, so much misinformation has been propagated about gold, it is unbelievable. During the run up in prices from $700 an ounce to $1900 almost all of the so called experts who appeared on CNBC continually denigrated gold as an investment as they were totally incapable of distinguishing between gold bullion and gold mining shares.
Read More @ SilverBearCafe.com
What does an iron chancellor have to do to be loved these days? After scrambling 7,000 members of the Greek police force out of an early prepaid retirement for her brief, still inexplicable 6 hour visit to Athens last Tuesday, which caused the now usual Syntagma square rioting, Merkel next took the stage in a rainy Stuttgart, in a show of support for the local mayor candidate Sebastian Turner, which promptly devolved into 14 minutes of continuous booing.
Chavez is one of the American right-wing’s favorite bogyman, because Chavez helps the people instead of bleeding them for the rich, which is Washington’s way. While Washington has driven all but the one percent into the ground, Chavez cut poverty in half, doubled university enrollment, and provided health care and old age pensions to millions of Venezuelans for the first time.
Little wonder he was elected to a third term as president despite the many millions of dollars Washington poured into the election campaign of Chavez’s opponent.
While Washington and the EU preach neoliberalism–the supremacy of capital over labor–South American politicians who reject Washington’s way are being elected and reelected in Venezuela, Ecuador, Brazil, Argentina, Uruguay, and Bolivia.
Read More @ PaulCraigRoberts.org
There’s no looking for crowd validation. There’s no waiting for outside redemption. There’s no collective bargaining to rely on.
The awakening is you. Only you.
That’s what all this ruckus is about. The battle for your spirit and soul. And that’s the boat each of us is in. There is nothing more important in this life for you, or me, than waking up. Once that’s straightened out the rest will follow.
How we perceive the world around us creates and reinforces the world around us. Once we become conscious and aware that this existing matrix we’re witnessing is an arbitrary creation manipulated by power-crazed puppeteers, however you perceive them, that is when the change happens.
And the Universe will tell you what to do from there. That’s what to respond to. Nothing else. That’s your job. That’s my job. Don’t shirk it when it happens.
Read More @ ZenGardner.com
Gold edged up $4.60 or 0.26% in New York yesterday which saw gold close at $1,767.50. Silver climbed to a high of $34.33 and then fell off and finished with a marginal loss of 0.12%.
Gold has seen volatile and choppy trading overnight in Asia and in Europe this morning with the price being capped at $1,772/oz and in a tight range between $1,767 and $1,772/oz.
Gold remains robust in euro terms at €1,364.50/oz and remains less than only 1% away from new record highs in the single currency (see chart).
India and China are embarking on their peak consumption season which may create a boost to the physical market.
Read More @ WealthWire.com
Absent the state’s involvement in the workings of the marketplace, an investor’s central task would be to evaluate companies for their ability to efficiently produce and market what customers want. Shrewdness at that one task would lead to the profits investors are looking for. And there would be other consequences.
The stocks of companies that succeeded in convincing investors that they had the right stuff (primarily through good performance) would be bid up. Stocks of companies that failed to make their case to investors would tend to drift down, and any company whose stock drifted low enough would become a takeover target. A takeover would replace underperforming management with a new team of officers and directors – individuals picked by the people who laid out their own money to buy enough shares to control the company.
That’s how things work when the government isn’t a player in the process. It’s a marvel of efficiency and impartiality. Managers who serve investors by serving customers are rewarded. Investors who identify such managers are rewarded. Unskilled managers eventually lose the corporate positions that enable them to make wasteful, money-losing decisions. And investors who are blind to management weakness or who forgive it too willingly lose their own money.
Read More @ CaseyResearch.com
Maybe the Norwegian Nobel Committee ran out of good candidates for this year’s Novel Peace Prize and didn’t want to transfer the money to the Main Fund, as they’d done in the past. So they handed it to the European Union, which triggered an avalanche of snickering and mocking. It wasn’t exactly an obvious choice. Its government is engaged in a phenomenal power grab, and its sub-group, the Eurozone, is mired in an extraordinarily screwed-up debt crisis that has led to bloody protests in the streets.
The committee has raised eyebrows before. In 1973 it awarded the Peace Prize jointly to Secretary of State Henry Kissinger and the North Vietnamese general Le Duc Tho for negotiating over a four-year period the Paris Peace Accord, signed in January 1973. Everybody knows how that story ended. People were also incredulous when Yasser Arafat was awarded the Peace Prize in 1994. Today, after all these years of tensions and bloodshed, the situation between Israel and the Palestinians is still not resolved. And then, in 2009, it was President Obama who was awarded the prize “for his extraordinary efforts to strengthen international diplomacy and cooperation between peoples,” though he’d been in office for less than a year. It was based, perhaps, on his speeches. Since then, his peace credentials have caught some flak.
Read More @ TestosteronePit.com
The state of Americans’ retirement accounts is dismal is how ConvergEx’s Nick Colas begins his critically important-to-read note on the reality that millions face. According to an early 2012 study by the Employee Benefit Research Institute, Colas notes only 58% of us are currently saving money for retirement – and 60% of those that are have less than $25,000. Thirty percent have less than $1,000. Needless to say, it’s a far cry from the 8x-10x final earnings suggested by most retirement planners. So why are we so far behind? Americans aren’t exactly known for impressive savings habits, but that alone does not explain our poor preparation for retirement. Rather, a general lack of financial literacy, including basic understandings of savings growth and retirement income needs, superseding financial obligations, and basic behavioral finance biases keep us from putting cash away. But if we keep up at this pace, you can expect the ongoing political debate about Social Security to take on new and more strident tones.
Read More @ Zero Hedge.com
So the European Union won the Nobel Peace prize for “having over six decades contributed to the advancement of peace and reconciliation, democracy and human rights in Europe.”
Is this a joke? Nigel Farage thinks so, exclaiming that ”this goes to show that the Norwegians really do have a sense of humour.”
The Telegraph reports:
A new video has surfaced from the Organic Spies group, and that video is being released exclusively on the Natural News video site TV.naturalnews.com. The hidden camera video shows a multitude of Whole Foods employees repeating misinformation to customers who ask whether the store sells GMOs. They appear to have rehearsed these false answers through some sort of company training.
This new video (see link below) is the second hidden camera video from Organic Spies, an anonymous group of “real food revolutionaries” who appear to be solidly organized, with spies apparently placed in cities across the country. They have successfully infiltrated multiple Whole Foods stores with covert cameras, posing as customers asking common questions about GMOs.
This new video, filmed after the video Organic Spies video was released, shows yet more Whole Foods employees repeating lies and disinformation to Whole Foods customers about GMO.
Read More @ NaturalNews.com
We live in an age where people would rather outsource their safety to some government agency instead of taking the time to learn about preparedness. They live under the false assumption that should something ever go wrong, the government will be there to help them pick up the pieces.
Let’s face it, even during small scale disasters, our government becomes quickly overwhelmed.
Read More @ OffGridSurvival.com
You might be aware that certain federal regulations apply to transactions involving cash. (Cash includes not only “green” cash, but also certain bearer instruments such as money orders and cashier’s checks.) As a normal part of their business, rare coin and precious metals dealers are required to know about mandatory record keeping and filing certain forms. As we all know, the coin and precious metals community is legitimately a cash-oriented business, and the Internal Revenue Service knows this as well.
What you may not know is that these laws apply to dealers and their collector clients. Sometimes collectors may read something about cash reporting and filing of forms in a financial newsletter, for example. But unfortunately, those articles usually only cover part of the story. They rarely mention how the law may apply to the client.
Very recently several dealers who thought they were on top of things were tripped up by something as simple as filling out bank deposit slips that included cash. Put simply, it is illegal (and a felony) to “structure” your cash transactions specifically to avoid reporting. So when some dealers followed the advice of their local bank tellers who suggested, “If you keep your cash deposits under $10,000, then I won’t have to do this paperwork,” the dealers were subsequently visited by IRS agents who had already seized a very significant amount of money from these dealers’ bank accounts.
Read More @ coinworld.com
Wynter Benton, the group who claim to be former JPM commodities traders with a grudge against Blythe Masters, and who recently stated that MF Global was pulled to prevent the group from standing for delivery in silver and that silver will trade above $50 by the end of 2012 has posted another statement.
The group claims that beginning Tuesday 10/16, the group will demonstrate their ability to move the price of silver by updating their moves in REAL TIME, and advise silver investors to hold onto their seats!
October 16 to October 23, 2012
Read More @ Silver Doctors
by Michael Krieger, Liberty Blitzkreig:
With the U.S. Presidential election less than one month away, I think it’s a good time to take stock on what has occurred in 2012 so far and look forward to the period ahead, which I think will be one of increasing social and economic chaos in the United States. Earlier this year I wrote a piece titled Six Months Left…Can They Do It? in which I questioned whether the Administration and its cronies at the Federal Reserve and elsewhere would be able to hold things together in a relative calm until November 6th. I wasn’t sure of their ability to do so, but I understood that everything would be thrown toward this objective, legal and illegal, to make it happen. Well here we are, and to some degree they have held the undeniable disaster that is very apparent underneath the superficial surface of American society from exploding upwards. Back in May I wrote:
Read More @ LibertyBlitzkreig.com
EU, in Crisis, Wins Nobel Peace Prize
Panetta Warns of Cyberattack on U.S.
Those Who Don’t Eat Or Drive See No Inflation
U.S. Sets Steep Final Duties on Chinese Solar Panels
U.S. Government Backed Mexican Drug Cartel
Step 1: Flash mob looting when their food stamp cards do not work or are inadequate.
Step 2: Flash mob riots when step 1 corrective efforts fail.
Step 3: The have-nots turn on the haves and normal police procedures are inadequate.
Step 4: Martial Law and that special love that only FEMA can provide.
Step 5: Katy bar the door.
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