UBS' Advice On What To Buy In Case Of Eurozone Breakup: "Precious Metals, Tinned Goods And Small Calibre Weapons"

Three months ago, Zero Hedge presented the first of many narratives that started the thread of explaining the "unmitigated disaster" that would ensue should the Euro break up, which in the words of authors Stephane Deo and Larry Hatheway, would leads to such mutually assured destruction outcomes as complete bank failure and/or civil war or far worse. Because if there is one thing the banks have learned in the aftermath of Hank Paulson, is that scaremongering when bonuses are at stake is the only to get taxpayer money to fund exorbitant lifestyles.,, Today, Larry Hataway has released yet another sequel to the original piece, focusing on this so very critical week for Europe, which as Olli Rehn said, must find a solution by Friday or see the EU "disintegrate", in which the vivid imagery, loud warnings and level of destruction are even greater than before. In other words, Europe has 4 more days, something which S&P tried it best to remind Europe of, as the alternative is "or else." And here comes UBS to remind everyone that anything but a "fix" to a system that was broken from the very beginning, would be a catastrophe, captured probably the best in Hatheway's recommendations of assets to be bought as a hedge to a Euro collapse: "I suppose there might be some assets worthy of consideration—precious metals, for example. But other metals would make wise investments, too. Among them tinned goods and small calibre weapons." But even that is nothing compared to the kicker: "Break-up runs the risk of becoming one wretched scenario. Sadly, however, it can’t be ruled out, just as it would have been improper to rule out the horrors of the first half of the 20th century before they happened." And there you have it: a reversion by Europe to the perfectly stable system from a decade ago, is now somehow supposed to result in World War. And with that the global banking cartel has official jumped the shark, just like the FT's latest rumor earlier today did the same by indicating that the well of European "bailout" ideas has officially run dry.

$2000 Is Coming Into View

December 6, 2011, at 3:31 pm
by Jim Sinclair 

My Dear Extended Family,

Gold surprised the growing army of bears today. Soon it is going to resolve this symmetrical formation (the angles are beautiful) and when it does it is going to be wild.

I buy the dips because I am certain that $2000 is coming into view. Regardless, hold your Gold insurance close to your chest and not at Fast Eddie’s Clearing House.

Regards, Jim

 

In The News Today

December 6, 2011, at 11:15 am
by Jim Sinclair 

Jim Sinclair’s Commentary

Where there is smoke there could easily be fire.

Iran’s Revolutionary Guards prepare for war
Iran’s Revolutionary Guards have been put on a war footing amid increasing signs that the West is taking direct action to cripple Iran’s nuclear programme.
By Con Coughlin
8:45PM GMT 05 Dec 2011
An order from Gen Mohammed Ali Jaafari, the commander of the guards, raised the operational readiness status of the country’s forces, initiating preparations for potential external strikes and covert attacks.
Western intelligence officials said the Islamic Republic had initiated plans to disperse long-range missiles, high explosives, artillery and guards units to key defensive positions.
The order was given in response to the mounting international pressure over Iran’s nuclear programme. Preparation for a confrontation has gathered pace following last month’s report by the International Atomic Energy Agency (IAEA) in Vienna that produced evidence that Iran was actively working to produce nuclear weapons.
The Iranian leadership fears the country is being subjected to a carefully co-ordinated attack by Western intelligence and security agencies to destroy key elements of its nuclear infrastructure.
Recent explosions have added to the growing sense of paranoia within Iran, with the regime fearing it will be the target of a surprise military strike by Israel or the US.
More…




Jim Sinclair’s Commentary

The seriousness of this cannot be overstated. Here the Banksters have cleaned out the heartland using political clout.

The game seems to be to operate anything that houses huge client funds and use them to speculate for the entity. If you win you bonus it out; If you lose screw them all.

To make all the banks and financial entities (including hedge funds) whole and many hugely profitable on the fraudulent OTC derivatives, leaving MF clients to take a long walk off a short financial dock is unthinkable.

Shame on you Sheeple that permit such in your cowardly silence. Shame on you others that are too damn lazy to protect yourselves no matter how hard I try to teach you how.

MF Global fallout delays U.S. farm seed, land deals
Tue Dec 06 17:49:54 UTC 2011
By Tom Polansek
CHICAGO (Reuters) – For the first time in 25 years, Minnesota farmer Dean Tofteland has missed his deadline to buy seed for next spring’s corn and soybean crops.
With $200,000 of his money yet to be returned from the accounts of MF Global, his former broker, the 49-year-old farmer has missed a $5,000 discount for early buyers, and is watching friends and neighbors snap up the best varieties of seeds.
In the latest sign of how MF Global’s failure is continuing to cascade across the commodity industry, Tofteland and other farmers who have yet to recover more than a third of their money from the bankrupt broker now find themselves in a cash crunch that risks rippling far beyond the futures market.
Some farmers have had to postpone purchases of land or equipment. Tofteland still expects to sow his 1,000 acres in the southwest corner of the state, but may have to borrow money to do so.
Still, the delay in returning billions of dollars in customer funds more than a month after MF Global filed for bankruptcy is starting to affect actual decisions on the farm. This threatens to cloud the outlook for U.S. crops, warn farmers who have been ratcheting up pressure on the bankruptcy trustee to move faster to disperse any cash he secures.
“That’s pretty serious when you’re raising food for the country and the world,” Tofteland said.
For most farmers, the fact that their broker may have taken as much as $1.2 billion of customer money for its own use is bad enough. But the seasonal business of farming is now being disrupted since regulators still can’t account for the missing funds, or even agree how big the hole is.
More…




Jim Sinclair’s Commentary

Here is Egon’s latest.

The Summation there is no practical tool that can be applied by central banks that will elevate the inevitable.

Prayer should not be a last ditch remedy. Better have some credit in that department as well. It can’t hurt!

DEUS EX MACHINA
by Egon von Greyerz – December 2011
With most of the world’s major economies as well as the financial system bankrupt, there is only one solution that can save the world economy. Like in the Greek tragedies, Deus ex Machina is now the only way that the world can avoid a total economic collapse. This would involve God being lowered down onto the world stage and miraculously saving the plot.
DEUS EX MACHINA by Leo Lein – www.leolein.se
For those few who believe in this, may God bless them. But since this is a very unlikely solution most people will instead rely on governments and central banks to save us. But how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve anything. They created the problem in the first place and are therefore totally unsuitable to play the role of Deus. The main objective of governments is to stay in power and thus to buy votes. Therefore they are incapable of taking the right decisions. And the opposition, aspiring to power is even less suitable since they will lie through their teeth and promise the earth in order to be elected. (We know that there are exceptions like Ron Paul, but the voters will most probably find his medicine too strong to swallow.)
What about central bankers, can’t they save us? Unfortunately any sensible person who becomes a central banker loses all his senses and becomes a prisoner of the political system.
Solution?
So if there is no Deus ex Machina and if governments or bankers can’t rescue the world, who can and what is the solution. Let us return to the wise von Mises to look at the options available now:
“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”
Ludwig von Mises
Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis. We have reached the end of the road and are now staring into the abyss.
The credit manufacturing system that started in 1913 when the Fed was founded, began its terminal phase in 1971 when Nixon abolished gold backing of the dollar. It has been clear to us for at least 20 years that the outcome was inevitable. It was never a question of “if” but only “when” it would happen. It is now clear to us that the false prosperity that the world has experienced by printing unlimited amounts of money will very soon come to an end. Thus the “if” and “when” conditions are now satisfied so the remaining question is HOW?
More…

Journalist Wayne Madsen: NDAA Detention Bill is Ultimate Act of Treason

Food for Thought from ‘Selco’, Who Lived Through “SHTF”

from ApartmentPrepper.com:

A couple of weeks ago, I recommended the link to SHTF Survival Q&A: A First-Hand Account of Long-Term SHTF Survival when I posted Quick Post Today.  I was fascinated by the first hand account by Selco, a man who lived through a SHTF scenario during the Bosnia collapse in 1992.  He described what it was like to live for a year in a city with no infrastructure:  no running water or sewer, trash pickup, no electricity; no food available, currency was useless and no rule of law.  For many of us urban dwellers, this would indeed be the dreaded SHTF situation, unlike anything we have ever faced.
Selco had some kind words about The Apartment Prepper’s Blog, and I asked him if he would mind answering questions that I had always wondered about.  I sent him a list of questions and he graciously responded.  I posted the responses “as is.”
Question 1.  On the forum where you described your experience of being under siege, you mentioned that you had no electricity or running water.  How did you and your family handle the toilet (sanitary) conditions?
Read More

MUST LISTEN: Jim Willie: “The Public Will Not Wake Up Until At Least 1 Million Private Accounts Are Stolen”

from Tekoa Da Silva’s Bull Market Thinking:

I had the chance to speak with the “Golden Jackass” this afternoon out of Costa Rica, namely, Jim Willie, publisher of the Hat Trick Letter. It was a riveting interview, as Jim’s global information and news sources paint a blackening financial future for participants in the Western financial system.
According to Jim, US & European investors are at incredible risk. “The entire financial system of the Western world is imploding,” said Jim. “There is exponentially rising risks for individuals and their money…the risk right now–is people losing their entire life savings. I cannot seem to get people to understand this.”
As we began discussing the MF Global collapse, Jim articulated his belief in a financial slight-of hand originating from “notice to deliver” requests for gold and silver submitted through MF before the collapse, which had the potential to cause a Comex delivery default. “Comex was ready to default on gold and silver in November, and rather than honor the notices for delivery, JP Morgan stole the funds in the accounts that were calling for delivery…notices for delivery were replaced by stolen accounts.” The evidence of this according to Jim is that, “JPM increased the amount of silver in their registered vaults by precisely the amount that was suppose to be delivered…JPM effectively averted both a Comex default and a European Sovereign Debt implosion.”
Read More (and Listen to the Interview)

Bloomberg Fires Back At Bernanke's Blustering Rebutall

It appears 'It Is On' as Bloomberg offers its well-reasoned and eloquent response to Mr. Bernanke's 'egregious errors' note to Congress. Without naming names, Bernanke makes a number of points regarding the reporting of the secret bailout terms and profiteering, which we discussed here, and now Bloomberg comes 'Over-The-Top' Stallone-style with a much more fine-toothed refutation of Bernanke's refutation of their reporting. "Bloomberg stands by its reporting" and offers a point-by-point take-down of the Fed-head's perspectives.

Gold and silver rebound/OI on silver and gold continue to fall/investors go straight to mining companies for metal

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 3 hours ago

Good evening Ladies and Gentlemen: The banking cartel showed up for work today in the wee hours of the morning.  They knocked gold down to around $1701.00 and silver below $31.50 but both metals clawed their way back close to positive territory in gold and firmly in positive territory in silver.  Gold finished the comex session at $1727.90 down $2.80 whereas silver finished up 36 cents to $32.67

Bank of France Debts Jump Tenfold on Capital Flight

The Bank of France faces surging debts to Germany’s Bundesbank and fellow central banks in the EMU system as foreign investors pull large sums out of French accounts.
by Ambrose Evans-Pritchard, Telegraph.co.uk:

French lenders lost €100bn (£86bn) in short-term deposits in September alone, mostly due to precautionary moves by US money market funds and Asian investors afraid of France’s exposure to Italy. “There were huge net capital outflows,” said Eric Dor from the IESEG School of Management in Lille.
The effects of this capital flight are surfacing on the Bank of France’s books under the European Central Bank’s so-called “Target2″ scheme, an ECB payment network that lets funds move automatically where needed.
Liabilities jumped suddenly in late July, rising from €10bn to €98bn by September. Ireland’s central bank owes €118bn, Spain’s €108bn and Italy’s €89bn.
Read More 

HeadLie: Withdrawing Your Money From Banks Will Make The Recession Worse

by Mac Slavo, SHTFPlan.com:

In case you haven’t yet heard, the Greeks are quietly continuing with a run on their banking system, a situation we’ve reported on previously, and one that British EU minister Nigel Farage warned of just a few short months ago. Savings and time deposits have dropped 30% since the start of the year and almost 10% was withdrawn in just September and October. It’s not panic in the streets – not yet, at least – but it’s getting close.
Der Spiegel reports:

Many Greeks are draining their savings accounts because they are out of work, face rising taxes or are afraid the country will be forced to leave the euro zone. By withdrawing money, they are forcing banks to scale back their lending – and are inadvertently making the recession even worse.

This headline description for the Der Spiegel article suggests that it is the fault of the Greek people that the country’s recession – more appropriately, depression – continues to worsen.
Read More

The Five D's Of Dystopian Markets

One of the most frequently-used phrases we hear is 'The Markets Are Broken' and while there are many anecdotal events almost every day in and across asset classes, there is more to it than sudden 'flash-crashes' or Italian bond levitation. The world is increasingly dystopian and Citigroup's credit group recently noted, as part of a pitch for structured credit products, the most critical aspects of our broken environment. While not quite as memorable as the five D's of Dodgeball; the five D's of Dystopian markets are decidely less comical.

Central Banks Dollar Liquidity Only Prolongs The Euro Debt Crisis.



Desperately Seeking Capital: Berlin May Have to Nationalize Giant Commerzbank. 



China to Prepare for Social Unrest. 



Jim Rogers: US Falling Into 'Deeper Trouble,' Faces 2013 Depression.



Anxious Greeks Emptying Their Bank Accounts




MF Global Proves Enron-Era Accounting Lives On



Central Bank Intervention:  Much Ado About Nothing



Analyst:  Earnings Outlook May Be Deteriorating Rapidly



Analysis:  BofA Close To Its Limit For Share Issuance

Please consider making a small donation, to help cover some of the labor and cost for this blog.

Thank You

I'm PayPal Verified