Rob McEwen: Gold to Hit $2000 & Accelerate, Silver $150 – $300

from King World News:
With the gold and silver markets still experiencing turbulence, today King World News interviewed legendary company builder, Rob McEwen, former CEO of Goldcorp and current Chairman & CEO of US Gold. When asked if he sees a coming gold explosion, McEwen responded, “Yes, that’s where every market goes (a mania). It just runs and buyer behavior models kick in where you reject the story outright, then you start to accept it and then you go, ‘I have to have it.’ We are looking at a lot of people (entering) this sector. It’s terribly under-owned, under-represented in most portfolios and when people start putting a little bit of gold in their portfolio, you are going to see big changes in the prices of gold stocks.”
Rob McEwen continues: Read More @ KingWorldNews.com

 

 

Unicredit / Raid on Gold & Silver / Greece & Italy / Sprott Silver Premiums Rise To 34.22%

by Harvey Organ:
Good evening Ladies and Gentlemen:
The price of gold fell today by $8.60 to $1607.50. Silver finished the comex session at $28.76 for a gain of 11 cents. It seems that the entire comex session is manipulated by the bankers as they hit round 3 am our time with the first London fix and generally around the second fix at 10 am our time. Once London is put to bet, the whack again knowing full well that the world is trading only in paper.
Late last night, we were alerted that the lease rates went negative which surely indicates that the raid was on again:
from a GATA supporter:
Read More @ HarveyOrgan.Blogspot.com

 

 

IAEA Confirms Iran Has Started 20% Uranium Enrichment

The geopolitical foreplay is getting ridiculous. At this point it is quite obvious that virtually everyone involved in the US-Israel-Iran hate triangle is just itching for someone else to pull the trigger. And the latest report out of the IAEA will only precipitate this. Who - remember the IAEA? The same IAEA which did not find nukes in Iraq in 2003 only to be overriden by Dick "WMD" Cheney to "justify" an invasion. As RIA reports:  "The International Atomic Energy Agency officially confirmed that Iran has started enriching uranium to the 20-percent level, which can easily be turned into fissile warhead material. "The IAEA can confirm that Iran has started the production of uranium enriched up to 20 percent using IR-1 centrifuges in the Fordo Fuel Enrichment Plant," the agency said in a statement. However, IAEA Spokeswoman Gill Tudor said that all nuclear materials and operations in the Fordo facility are “under the Agency's containment and surveillance."" Naturally, that leaves the "use of uranium" variable quite subjective and in the hands of political manipulation. Which means at this point it is only a matter of days before the meme that Iran already has nuclear warheads becomes actively adopted by warmongers everywhere.

PIMCO's El-Erian: QE3 Won't Produce The Outcomes We Want

In his typical forthright manner, the moustachioed maestro appeared on Bloomberg TV today discussing Europe's crisis and the US economy. While we (ZH) wonder what (or who) the 'we' El-Erian is speaking for, he notes that the Fed "doesn't have enough policy instruments to deal with the challenges facing the economy" and that QE3 will not work (a possibility we discussed last week). From investing in a fat-tailed environment to the Fed's liquidity trap and why Europe needs to 'refound' the euro-zone, his fragile hope is that crises remain 'contained' yet prefers the USD's 'safety' for now and worries on the US stocks 'cleanest dirty shirt' bullish argument, suggesting defense is the better play currently.

Complete January Chart Porn

Our comprehensive monthly chart porn packet comes courtesy of our favorite chartist: The Punchline's Abe Gulkowitz who has just released the January edition: "Jump Ball 2012 Will it all Fall Into Place in 2012?" - the narrative is brief (by definition) by as always cuts right to the chase. "It’s a new year and US economic activity is looking better. But magic is still needed to resolve the numerous challenges ahead. The best scenario is that the cyclical upturn gains momentum here in the U.S. and the rest of the world falls into place. Many are right to expect fourth?quarter GDP growth in the U.S. to have been a 3.5% growth pace, but still expect the spillover from Europe and policy uncertainty to cause GDP growth to decelerate over 2012. We have attempted to flush out some issues that are inadequately covered in the press… First, despite impressive improvement in the U.S. business scene, the recovery remains awkwardly distorted. The continuing deep slump in the housing market is partly to blame. The construction sector added only 47,000 jobs in 2011. More than 2 million construction jobs have evaporated since 2007, and the sector’s job count is back to its level in 1996, when the population and the economy were smaller. Second, the role of government spending has become so extended that it might take years to correct. Third, market liquidity measures have been drying up as big banks and financial institutions play defense. This is both a function of new regulatory underpinnings and the morass in Europe. While the focus of politicians and market players has been to remedy the short term necessities in the fiscal and debt crisis, the long?term challenge for Europe is to find ways of reducing its divisive divergence in economic performance and boosting overall rates of growth. If these issues are not addressed and resolved, the continent will remain locked in an asymmetric pattern of trade and stagnant living standards for both rich and poor countries. Such broader issues will require imagination and structural changes to the current framework, and faster growth worldwide than is currently on the drawing board…" Must read for even the most time-pressed and ADHD afflicted flow desk traders.

Capital Account: Gonzalo Lira tells us how Americans are Escaping from the USA (01/09/12)

Ron Paul Surging in New Hampshire

 

Gold Daily and Silver Weekly Charts - Calm Before the Storm

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SP 500 and NDX Futures Daily Charts

 

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Keep The Faith

Dave in Denver at The Golden Truth - 2 hours ago

*"We'll never let Tebow beat us passing the ball" - Fabled Pittsburgh Steeler defensive coordinator, Dick LeBeau, before the Denver Bronco/Pittsburgh Steeler playoff game* I'm having a bit of trouble focusing on something interesting and informative to write about today, not that I'm saying my posts in general are interesting and informative, as I'm still basking in the warmth of Denver's huge upset win yesterday over the Pittsburgh Steelers. Needless to say it was Tim Tebow's passing heroics that proved to be what beat the Steelers...keep the faith. Having said that, I wanted t... more » 

 

Forbes: Regulators and Trustees Suppressing Details on MF Global

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European Banks Now Get Loans From Cash-Rich Firms

Eric De Groot at Eric De Groot - 3 hours ago

Another stumble risks far more than just the financial sector. Failure of GM through GMAC (now Alley Bank) taught us that lesson. Headline: European Banks Now Get Loans From Cash-Rich Firms Blue-chip names like Johnson & Johnson, Pfizer, and Peugeot are among firms bailing out Europe's ailing banks in a reversal of the established roles of clients and lenders. One source with knowledge of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Guest Post: Was 2011 A Dud Or A Springboard For Gold?

Gold registered its eleventh consecutive annual gain, extending the bull market that began in 2001. The yellow metal gained 10.1% – a solid return, though moderate when compared to previous years. Silver lost almost 10% year over year, due primarily to its dual nature. Currency concerns lit a match under the price early in the year, while global economic concerns forced it to give it all back later. Gold mining stocks couldn't shake the need for antidepressants most of the year, and another correction in gold in December dragged them further down. Meanwhile, those who sat in US government debt in 2011 were handsomely rewarded, with Treasury bonds recording one of their biggest annual gains. In spite of the unparalleled downgrade of the country's AAA credit rating, Treasuries were one of the best-performing asset classes of the year. The driving forces there are expanding fear about the sovereign debt crisis in Europe, combined with the Fed's promise to keep interest rates low through 2013.

Alcoa Meets EPS Forecast On Rise In Revenue, Free Cash Flow Turns Negative

Alcoa was expected to generate $(0.03) in EPS in Q4 and so it did. However, it took it 5.99 billion in top line revenue just to not miss traditionally lowered Wall Street estimates. This compares to the $5.7 billion it was expected to make: so there goes your margin. And when one looks at EPS on a purely operational basis, the Company had a loss from operations of $193 million or $(0.18) EPS which included a $74 million benefit from taxes. But of course who cares: after all Alcoa reported "restructuring and other charges" of a whopping $232 million for the quarter, just to make sure everything is apples to oranges. Otherwise the reported $445 million in EBITDA (on $449 million in consensus) would have been more like $200 million. Even so: EBITDA margin dropped from 13.8% in Q4 2010, and 12.8% in Q3 2011, to a measly 7.4% in Q4 2011. Other notable items: CapEx jumped from $325 million in Q3 to $486 million in Q4, meaning that based on the traditional Free Cash Flow definition of EBITDA-CapEx, that used for bond indenture purposes, Alcoa actually burned cash in Q4. Finally, the company forecasts global aluminum demand and supply deficit (probably does not explain why it has been shuttering smelter capacity all around the world) of 7% in 2012- a big drop from recent years. All in all - not quite the right way to start the new year.

Consumer Credit Jumps By Most In 10 Years On Surge In Car Loans

What happens when consumer savings plunge to year lows, when a major shopping holiday is just around the corner, and when every TV station tells you to spend, spend, spend for Thanksgiving just to show your friends and family you care for them? Why people go out and buy on credit of course. Lots of credit. As the just released G.19, aka Consumer Credit, data from the Fed indicates, in November US households borrowed a 10 year high amount of $20.4 billion. Of course, reading between the lines confirms that all is as usual not as it seems, and not to conclude that the money multiplier model is back in action. Because of the $20 billion, only $5.6 billion was revolving credit, with the bulk in cheap Subprime loans funded by the government for purchases of GM vehicles and student loans. Granted even so the revolving credit jump was the biggest since February 2008, when deleveraging was the last thing on consumers' minds. So are consumers relevering again? And if so are they doing so because they are confident the economy is improving? We doubt it, and we are fairly confident December data will be quite different and will show a notable reversal when effecting for all the record merchandize returns following the early Thanksgiving retail splurge. Judging by the market's non-reaction to this news, it seems to agree. Because if it didn't it would also means that it is about time for the Fed to start tightening: and if there is one thing that would guarantee a 30% instantaneous correction it is the mere whisper that the Fed needs to withdraw some of its $1.7 trillion in excess liquidity out of the system.

Buiter On Why Irish Eyes Demand A New Bailout

While Ireland's bond performance is often held up as evidence that living-standard-crushing austerity can indeed lead to positive developments, Citgroup's chief economist William Buiter suggests, in a speech in Dublin today, that they should begin negotiating a new rescue package as soon as possible. Buiter, via The Irish Times, points to the fact that Ireland currently pays around 6% for its 'rescue-money' which could be refinanced (theoretically) at around 3% via the EFSF. He said Ireland was not like Greece but it was in very bad fiscal shape because of its bank guarantee (isn't that what Italy and Portugal are doing with the new Ponzi-bonds?). He said that clearly something had to be done about the "continuing massive sovereign funding gap" that Ireland had and which still existed after three and a half years of "fierce" fiscal austerity. While Merkel's comments today on central bank support as illusory and spending EU money appropriately, it would seem that Ireland remains in a strong negotiating position. We await the term 'referendum' to confirm the discussions have begun - and given the timing (the day before IMF-EU official's fifth review) we would expect to hear it soon.

Guest Post: Why Bernanke Has Failed, And Will Continue To Fail

Ben Bernanke's zero-interest rate policy (ZIRP) and command-economy efforts to maintain mispricing of risk, debt and assets are destroying capital and capitalism. No wonder his policies have failed so miserably. Bernanke's policy is to punish capital accumulation and reward leveraged debt expansion. Rather than enforce the market's discipline and transparent pricing of risk, debt and assets, Bernanke has explicitly set out to re-inflate a destructive, massively unproductive credit bubble. This is why Bernanke has failed so completely, and why he will continue to fail. He is not engaged in capitalism, he is engaged in the destruction of capital, investment discipline and the open pricing of risk, debt and assets.

Greece Spends Bailout Cash On European Military Purchases

As Greek standards of living nose-dive, loans to households and businesses shrink still further, and Troika-imposed PSI discussions continue, there is one segment of the country's infrastructure that is holding up well. In a story on Zeit Online, the details of the multi-billion Euro new arms contracts are exposed as the European reach-around would be complete with IMF (US) and Europe-provided Greek bailout cash doing a full-circle into American Apache helicopters, French frigates, and German U-Boats. As the unnamed source in the article notes: "If Greece gets paid in March the next tranche of funding (€ 80 billion is expected), there is a real opportunity to conclude new arms contracts." With the country's doctors only treating emergencies, bus drivers on strike, and a dire lack of school textbooks and the country teetering on the brink of Drachmatization, perhaps our previous concerns over military coups was not so far-fetched as after the Portuguese (another obviously stressed nation), the Greeks are the largest buyers of German war weapons.  It seems debt crisis talks perhaps had more quid pro quo than many expected as Euro Fighter commitments were also discussed and Greek foreign minister Droutsas points out:"Whether we like it or not, Greece is obliged to have a strong military".

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