Silver will be the next Apple, Turk tells King World News

 

 

You Decide...

NDAA Is A Hoax: You Can't Legalize Tyranny 

 

Top Three Central Banks Account For Up To 25% Of Developed World GDP

For anyone who still hasn't grasped the magnitude of the central planning intervention over the past four years, the following two charts should explain it all rather effectively. As the bottom chart shows, currently the central banks of the top three developed world entities: the Eurozone, the US and Japan have balance sheets that amount to roughly $8 trillion. This is more than double the combined total notional in 2007. More importantly, these banks assets (and by implication liabilities, as virtually none of them have any notable capital or equity) combined represent a whopping 25% of their host GDP, which just so happen are virtually all the countries that form the Developed world (with the exception of the UK). Which allows us to conclude several things. First, the rapid expansion in balance sheets was conducted primarily to monetize various assets, in the process lifting stock markets, but just as importantly, to find a natural buyer of sovereign paper (in the case of the Fed) and/or guarantee and backstop the existence of banks which could then in turn purchase sovereign debt on their own balance sheet (monetization once removed coupled with outright sterilized asset purchases as is the case of the ECB). And in this day and age of failed economic experiments when a dollar of debt buys just less than a dollar of GDP (there is a reason why the 100% debt/GDP barrier is so informative), it also means that central banks now implicitly account for up to 25% of developed world GDP!

Guest Post: Why Has Gold Been Down?

In spite of some short-term fixes, there remains no real resolution to the sovereign debt issues in many European countries. We're certainly not spending less money in the US, and now we're bailing out Europe via currency swaps with the European Central Bank. Shouldn't gold be rising? Yes, but nothing happens in a vacuum. There are some simple explanations as to why gold remains in a funk.

1. The MF Global bankruptcy, the seventh-largest in US history, forced a high degree of liquidation of commodities futures contracts, including gold. Many institutional investors had to sell whether they wanted to or not. This is similar to why big declines in the stock market can force funds and other large investors to sell some gold to raise cash for margin calls or meet redemption requests.
2. The dollar has been rising. Money fleeing the Eurozone has to go somewhere, and some of it is heading into US bonds, which means first converting the foreign currency into dollars.
3. It's tax-loss selling season, something that's also impacting gold stocks. Funds and individual investors are selling underwater positions for tax purposes. Funds also sell their big winners to lock in gains for the year and dress up quarterly reports.

These forces have all acted to depress the gold price.

SHARE THIS FAR & WIDE: Romney Avoids U.S Tax by Using Offshore Bank Accounts, Net Worth $250 MILLION

This is a MUST Listen to Video...all of it...

Ann Barnhardt & Warren Pollock: a Open, Detailed Conversation About MF Global

Ann Barnhardt and Warren Pollock have an open conversation organized to provide background to this crisis, the setting of legal precedent, netting, settlement, and future trends including a potential bank holiday. We talk about MF Global as it applies to savings and commercial banking, brokerage, insurance, and commodities. We talk about the numeric impossibility of solving the problem, and the incestuous relationship between government and finance. We explain how the MF Global bankruptcy process will define how customer funds will be treated in a bank holiday.

Merk on Euro, U.S. Dollar, Gold Investment Strategy

 

 

U.S. Government to the Rescue

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from WealthCycles:

Ever the entertainer, Bill Gross of PIMCO has some interesting thoughts in his early January Investment Outlook. For running a mainly debt outfit, Gross is quite bearish on the stuff—criticizing sovereign debt and indicating that another official bout of quantitative easing isn’t just likely, its already baked into the cake.

How many ways can you say “it’s different this time”? There’s “abnormal,” “subnormal,” “paranormal” and of course “new normal.” Mohamed El-Erian’s awakening phrase of several years past has virtually been adopted into the lexicon these days, but now it has an almost antiquated vapor to it that reflected calmer seas in 2011 as opposed to the possibility of a perfect storm in 2012. The New Normal as PIMCO and other economists would describe it was a world of muted western growth, high unemployment and relatively orderly delevering. Now we appear to be morphing into a world with much fatter tails, bordering on bimodal. It’s as if the Earth now has two moons instead of one and both are growing in size like a cancerous tumor that may threaten the financial tides, oceans and economic life as we have known it for the past half century. Welcome to 2012.

Read More @ WealthCycles.com

 

Can Ron Paul Win New Hampshire?

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[Ed. Note: Bev Harris (Blackboxvoting.org) is very concerned that the PTB will steal the election in New Hampshire where 2/3 of the State has the easily hacked Diebold voting machines.]
by RonPaul2008dotcom:

Look Out Below – The Nightmarish Decline Of The Euro Has Begun

from The Economic Collapse Blog:

The euro is a dying currency.  On Thursday, the EUR/USD fell below 1.28 for the first time since September 2010.  In fact, as I write this the EUR/USD is sitting at 1.2791.  Back in July, the EUR/USD was over 1.45.  But this is just the beginning.  The euro is going to go a lot lower.  At this point, there are several major European nations that are on the verge of default, the European financial system is overflowing with debt and toxic assets, and most major European banks are leveraged about as badly as Lehman Brothers was when it collapsed.  Most Americans simply do not grasp the gravity of what is happening.  Just because the Dow is sitting above 12000 and a few U.S. economic numbers have improved slightly does not mean that everything is going to be okay.  As I wrote about recently, the EU has a bigger economy than we do and they have a bigger banking system than we do.  U.S. banks are massively exposed to European sovereign debt and European banking debt.  When the financial system of Europe collapses and the euro falls apart it is going to rock the entire planet.  So you better look out below – the euro is coming down and it is coming down hard.  After the euro implodes, nothing is every going to be the same again.
So how far are we going to see the euro decline?
Read More @ TheEconomicCollapseBlog.com

Joe Rogan on Ron Paul: Break… Your… Conditioning.

[Ed. Note:: Joe Rogan has one of the most popular podcasts on iTunes. He reaches a huge audience, and they're starting to wake up in droves. Pass this on to friends who are still asleep and tell 'em "Check this out. It's the guy who hosts 'Fear Factor', you gotta hear this".]
from PSNy2kUK:

Is Rick Santorum Just Another NWO Fascist? Listen to His Views on Small Government

Massive American Troop Build-Up In Israel: War With Iran On The Horizon?

 

 

Saudis, Gulf States on War Alert For Early US-Iran Clash

from Debka.com:
The armies of Saudi Arabia and fellow Gulf Cooperation Council states stood ready Thursday Jan. 5, for Washington to stand up to Iranian threats and send an aircraft carrier or several warships through the Strait of Hormuz into the Persian Gulf. Riyadh has been leaning hard on the Obama administration not to let Tehran get away with its warning to react with “full force” if the USS Stennis aircraft carrier tried to reenter the Gulf or Iran’s pretensions to control the traffic transiting the world’s most important oil route.
Wednesday night, the Iranian parliament began drafting a bill prohibiting foreign warships from entering the Gulf without Tehran’s permission.
Read More @ Debka.com

 

Capital Account: Edward Harrison, “The Fireworks Will Start With Spain Or Italy” (01/05/11)

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