The Greatest Truth Never Told: Top 5 Place NOT To Be In A Dollar Collapse
Detlev Schlichter And Alasdair Macleod On The Coming Paper Money Collapse
Career Advice: Get Into Agriculture
Admin at Jim Rogers Blog - 21 minutes ago
My advice to young people would be to get into agriculture. If you want to
make money over the next 20 years, agriculture is the way to go. - *answering
a question about careers for the future*
*Related, Potash (POT), Mosaic (MOS), PowerShares DB Agriculture Fund
(DBA), ELEMENTS Rogers Intl Commodity Index - Agriculture Total (RJA), John
Deere (DE)*
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular... more »
Emotional Clamour, Extreme Concentration, And Feel For Markets
Eric De Groot at Eric De Groot - 40 minutes ago
Liquidity is lifting all boats. Relative buoyancy in this case rather than
being defined by fluid pressure and gravity are defined by human behavior
and capital flows. At times the equity market is a clear winner, while
others the gold miners are quietly out perform. I characterize it as quiet
because the media rarely focuses on gold and the gold shares. Close your
eyes and focus your mind...
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content, and more! ]]
Use This Sell-off To Prepare For The Next Big Fundamental Move Higher
Dave in Denver at The Golden Truth - 2 hours ago
*A good hockey player plays where the puck is. A great hockey player plays
where the puck is going to be. * - Wayne Gretsky
*The reason this sell off in gold and silver doesn’t particularly concern
me is we have seen this pattern now for more than a decade. Hedge funds
buy paper gold and silver, pushing the prices higher on momentum and the
bullion banks or commercials are on the sell side, building up a sizable
short position.*
That quote is from Dan Norcini's interview on King World News Blog LINK.
Dan has been trading the futures market for twice as long as I have and,
wh... more »
Geopolitical Risks Were High 6 Months Ago And Even Higher Now
Admin at Marc Faber Blog - 3 hours ago
Political risk was high six months ago and is higher now. I think sooner or later, the U.S. or Israel will strike Iran - it's almost inevitable. - *in Reuters* *Related, United States Oil Fund (USO), IShares Emerging Markets ETF (EEM), Crude Oil Futures* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*
"We Have No Other Choice"
Why do families persist in taking on $100,000 student loans for mostly mediocre educations with mostly mediocre "benefits" in the job market? Because they feel they have no other choice. Why do people persist in mortgaging their future and accepting the yoke of debt-serfdom to own a house? Because they feel they have no other choice, and owning a house has become integral to the "American dream." Why do local state, county and city politicos continue playing absurd budget games, shuffling funds, borrowing from their employees' pension plans to make this year's pension plan contribution and similar threadbare tricks? You guessed it: they have no other choice, lest someone somewhere feel some pain. Why do our Federal "leaders" borrow $1.5 trillion each and every year now, fully 10% of the nation's total output, knowing full well that this level of borrowing will bankrupt the nation? (Don't forget to add in the "supplemental" off-budget borrowing.) You know: they have no other choice, lest someone somewhere feel some pain. So instead they keep the accelerating vehicle pointed straight for the cliff. There are only two end-states to this level of borrowing: hyper-inflation or default. Any other "choice" is mere fantasy.Spanish Housing Re-Plunging
The crash in home prices in Spain is re-accelerating. Bloomberg data shows the drop in Q4 as the third worst drop YoY ever and the fastest rate since September 2009 taking prices back to March 2005 levels. As WSJ reports,
Spanish banks hold more than EUR400 billion worth of loans to the
construction and real-estate sector, back by collateral that is now
losing value at almost record paces. Is it any wonder that the banks are
seeking state-guaranteed debt issuance
(as no-one will touch them directly) as "the outlook remains bleak,
with the demand for housing expected to shrink throughout 2012 with
debt-laden households struggling to cope with a devastated labor market and limited access to credit."
Perhaps today's disappointing Spanish auction (weak demand) is the
first reality-seeking canary in the LTRO-enthused coalmine of Spanish
and Italian self-dealing as the real-money vigilantes start to bet
actively against Spain in favor of Italy (which trades tight of Spain
for the first time this week since August). Spanish banks need more cowbell LTRO (but what collateral is there left) to fund more support for their local govvies.Goldman Again Selling Russell 2000 To Muppets
It seems like it was only yesterday that Goldman initiatied a long in the Russell 2000, only to prematurely close the trade a few days later. Sure enough, here it is again. So, dear muppets, you are to buy all the 'elephants' that Goldman has to sell. As for the three letter acronym: just use RUT.Sigh:
- S&P says that it is impossible that any economic improvement would bring back the AAA rating
- US deficit progress is needed.
- Outlook remains negative.
Obama Aide Refutes Report On SPR Release
We thought it was getting stupid one post ago. Not sure what to call this then:- REPORT OF AGREEMENT ON OIL RELEASE INACCURATE - OBAMA AIDE
It's Official - US, UK To Release Strategic Oil Stocks
And so the lunacy hits a crescendo:- U.S., U.K. AGREE TO EMERGENCY OIL STOCKS RELEASE, REUTERS SAYS
Hi China, this is Barrack, please buy our oil at firesale prices as you in turn build your strategic reserves. I have a reelection to win. Oh and when Iran attacks one of our 3 aircraft carriers parked next to Tehran in a false flag attack, at least oil will soar from a lower price point.
Love, B.H.O
With The Enterprise Just 4 Days Away From Arrival, A SWIFT Cut Off Of Iran
Update: as
we hit print, we see headlines that the UK will cooperate with the US
on bilateral agreement to release oil stocks. Crude down big on the
news, which is merely an advance move ahead of almost inevitable war
with Iran, simply to make the spike more palatable.The push to get Iran to do something terminally irrational (now that USS Enterprise in its final tour of duty is almost on location just off the side of CVN-70 Lincoln and CVN-72 Vinson in the Arabian Sea, where the US will shortly have not one, not two, but three aircraft carriers) is now in its final stretch. As AP reported earlier, Iran has been now entirely cut off from the global financial system, as that anchor of international financial transactions, SWIFT, has just taken Iran off the grid. This leaves Iran with just three options for international trade: making gold into a fully convertible currency, barter, or exchanging Rials for Renminbi and other local currencies. As a reminder, virtually the entire non-parked naval fleet will be in the Arabian Sea and Persian Gulf in the next 4-6 days, where 3 aircraft carriers and one big-deck amphibious warfare ship are just waiting for the order.
The "New Normal" American Dream Of Renting Is About To Become Very Expensive
Much
has been made recently of the government's renewed efforts to spark
the housing market from its dismal slide, however we fear there are yet
more unintended consequences lurking just around the corner. The
various ideas being posited for a broad REO-to-rental program is one of
these steps as BofA points out in accommodating the dramatic shift from
ownership to renting (with 4.2mm new renters and 1.2mm fewer
homeowners since the end of 2006). Of course removing foreclosures from
the for-sale market reduces competition for voluntary sellers - which
should help to support prices for non-distressed homes but here is
where the crux of the unintended consequence lies. We have a squatter
epidemic. There are millions of 'homeowners' currently living
mortgage-payment-free (by choice) who will soon be forced (as the
foreclosure process ramps up post-settlement) to pay rent (since they will not qualify for a mortgage). This will have the double whammy effect of reducing overall discretionary consumption spending (as rent is greater than 'free' - unless the cardboard box is preferable) and driving inflationary forces into rental costs
(something we are already seeing). Of course these are the much larger
second-order effects and we will only be told of the primary benefits
of clearing foreclosure inventory, but at the margin (along with gas
prices) the household will have less discretionary iPad-buying
ammunition as opposed to more.Is JPM Metals "Whistleblower" Letter A Complete Fraud Or Just A Total Mockery?
Today, the metals space is abuzz with a CFTC "comment letter" posted on its website by an alleged "current JPM employee." There is only one problem - this letter is either a complete fraud or simply a total mockery, as it provides absolutely nothing new, and merely regurgitates existing manipulation claims already out in the public domain, and backed by precisely zero evidence. How about attaching a signed trade confirm, or a daily internal P&L report, or even a blotter entry? No? Because they don't exist? Needless to say, anyone can submit such an alleged insider letter, and since there is no name associated to it, we would advise everyone to merely enjoy this a prank attempt. Unfortunately, what more such repeated faux "whistleblower letters", which are likely forthcoming, from other "current JPM employees" will do is simply dilute the effect of any real such disclosure that may come in the future. For that purpose, we strongly caution anyone who considers submitting such disinformation attempts from doing so as it will merely impair and discourage any just intent of validated and justified whistleblowing, either at JPM or elsewhere.Jens Weidmann Defends Bundesbank Against Allegations Of TARGET2-Induced Instability
We have previously discussed the substantial, and growing, threat to the German economy that is the Bundesbank's negative TARGET2 balance, which we have formerly dubbed Europe's €2.5 trillion closed liquidity loop, which just rose to a new record over €550 billion (in "Has The Imploding European Shadow Banking System Forced The Bundesbank To Prepare For Plan B?", "Goldman's Take On TARGET2 And How The Bundesbank Will Suffer Massive Losses If The Eurozone Fails", and most recently in "Dear Germans: Bring Out Ze Checkbooks") which in turn merely represents the taxpayer funded capital flow to insure that the Eurozone remains solvent for one more day as Germany's peripheral trading partners receive rescue capital every day in the form of recycled German current account surplus. It now appears that the Bundesbank president has taken to these allegations of monetary instability strongly enough to where he has just released the following response on Target2 in "What is the origin and meaning of the Target2 balances?" Full letter below.
This fear mongering about Iran maybe having the potential to possibly build a nuclear bomb (which they are not currently doing)
is a desperate propaganda campaign by war profiteers on the hill to
preemptively invade a sovereign state (most likely without a declaration
of war), so I think it would be a good idea to pump the breaks and go
over some basic facts that the dinosaur media conveniently forgets to
divulge.
If we first look at who is intensifying the rhetoric and pushing for
“crippling” sanctions on a country that has, as of yet, failed to
actually do anything wrong, the finger would have to be pointed squarely
at the state of Israel and Prime Minister Benjamin Netanyahu.Read More @ Endthelie.com
by David Schectman, MilesFranklin.com:
I asked my friend Trader David R where the bottom is, after today’s mauling. He replied:
Read More @ MilesFranklin.com
from FinancialSense.com:
Jim
welcomes Michael O’Higgins, author of the best-selling book Beating The
Dow, and founder of O’Higgins Asset Management. Michael sees gold
eventually reaching a 1-to-1 ratio with the Dow Jones Index. He is
currently 40% invested in stocks, mostly in Europe and Russia. He still
owns some bonds, prefers platinum over gold and stresses diversification
in this very unpredictable market.
Considered one of the top money managers in the United States since 1978, Mr. O’Higgins has been the subject of articles in Time Magazine, Barron’s, Forbes, Business Week, Money Magazine, Financial World, The Wall Street Journal, The New York Times, USA Today, and The Financial Times, as well as being a special guest on CNBC’s Smart Money and a regular guest on PBS’s Nightly Business Report.
Click Here to Listen to the Interview
I asked my friend Trader David R where the bottom is, after today’s mauling. He replied:
Technically it
looks like we could test $1,555.00. That is my level where I will sell
my kids, my house, my wife and buy as much gold as I can! I think we are
going to soon see the levels of a lifetime to buy….. as Bill Gross said
yesterday, ‘THE FED IS PLAYING A GAME WITH US.’
Nothing has changed except the perception! This is a healthy move to get a much higher price later this year! That is my view for now.
If you are a fan of “technical analysis,” $1,555 is the number to
follow. If you believe that TA doesn’t work in a manipulated market,
then disregard his comments. Mind you, the fall in gold (and silver) is
a COMEX event and has nothing to do with the buying of physical metals
from India, China, Russia and savvy international investors. It can
turn up at any time and need not continue to drop.Read More @ MilesFranklin.com
from King World News:
With
so much worry surrounding the gold and silver markets, today King World
News interviewed legendary Pierre Lassonde, to get his thoughts on what
to look for going forward. Pierre is arguably the greatest company
builder in the history of the mining sector. He is past President of
Newmont Mining and past Chairman of the World Gold Council and current
Chairman of Franco Nevada. When asked about the plunge in gold,
Lassonde responded, “There’s no cliff here. There’s no need to panic
whatsoever. First of all, let’s take a look at where we came from. We
came from $250 ten years ago, to $1,600 to $1,700 today. That is a
remarkable feat for the gold price.”
Pierre Lassonde continues: Read More @ KingWorldNews.com
Stay Diversified−There are too many cross-currents coming from GovernmentWith
so much worry surrounding the gold and silver markets, today King World
News interviewed legendary Pierre Lassonde, to get his thoughts on what
to look for going forward. Pierre is arguably the greatest company
builder in the history of the mining sector. He is past President of
Newmont Mining and past Chairman of the World Gold Council and current
Chairman of Franco Nevada. When asked about the plunge in gold,
Lassonde responded, “There’s no cliff here. There’s no need to panic
whatsoever. First of all, let’s take a look at where we came from. We
came from $250 ten years ago, to $1,600 to $1,700 today. That is a
remarkable feat for the gold price.”Pierre Lassonde continues: Read More @ KingWorldNews.com
by Matt Taibbi, RollingStone.com:
In a story that should be getting lots of attention, American Banker has released an excellent and disturbing exposé of J.P. Morgan Chase’s credit card services division, relying on multiple current and former Chase employees. One of them, Linda Almonte, is a whistleblower whom I’ve known since last September; I’m working on a recount of her story for my next book.
One of the things we were promised by the lawmakers who passed the Dodd-Frank reform bill a few years back is that this would be a new era for whistleblowers who come forward to tell the world about problems in our financial infrastructure. This story now looms as a test case for that proposition. American Banker reporter Jeff Horwitz did an outstanding job in this story detailing the sweeping irregularities in-house at Chase, but his very thoroughness means the news may have ramifications for Linda, which is why I’m urging people to pay attention to this story in the upcoming weeks.
Read More @ RollingStone.com
In a story that should be getting lots of attention, American Banker has released an excellent and disturbing exposé of J.P. Morgan Chase’s credit card services division, relying on multiple current and former Chase employees. One of them, Linda Almonte, is a whistleblower whom I’ve known since last September; I’m working on a recount of her story for my next book.
One of the things we were promised by the lawmakers who passed the Dodd-Frank reform bill a few years back is that this would be a new era for whistleblowers who come forward to tell the world about problems in our financial infrastructure. This story now looms as a test case for that proposition. American Banker reporter Jeff Horwitz did an outstanding job in this story detailing the sweeping irregularities in-house at Chase, but his very thoroughness means the news may have ramifications for Linda, which is why I’m urging people to pay attention to this story in the upcoming weeks.
Read More @ RollingStone.com
by Rick Ackerman:
A
U.S. banking system that is being held aloft solely by hot air and
brazen lies took an ebullient leap toward November 6 yesterday with the
release of an Administration-friendly Fed report declaring most banks
sufficiently capitalized to weather severe adversity. How severe? It’s
hard to tell, since there were only passing references in the New York
Times to a still-deflating housing market that has helped make The Great
Recession and a plummeting standard of living an entrenched fact of
life for most Americans. And nowhere in the front-page article was there
even a word about the Fed’s warehousing of trillions of dollars’ worth
of mortgage paper once held by the banks – debt paper that might never
recover in value. Under the circumstances, far from being healthy as
the Fed and its shadowy masters would have us believe, the banks are
afflicted with the financial equivalent of stage four cancer. Not that
anyone on the Street would care to notice. In fact, with this week’s big
stock market gains, Wall Street seems to be literally banking on the
ability of the spinmeisters to hide the financial system’s deathly
pallor with the skill of Sonny Corleone’s mortician.
Read More @ RickAckerman.com
A
U.S. banking system that is being held aloft solely by hot air and
brazen lies took an ebullient leap toward November 6 yesterday with the
release of an Administration-friendly Fed report declaring most banks
sufficiently capitalized to weather severe adversity. How severe? It’s
hard to tell, since there were only passing references in the New York
Times to a still-deflating housing market that has helped make The Great
Recession and a plummeting standard of living an entrenched fact of
life for most Americans. And nowhere in the front-page article was there
even a word about the Fed’s warehousing of trillions of dollars’ worth
of mortgage paper once held by the banks – debt paper that might never
recover in value. Under the circumstances, far from being healthy as
the Fed and its shadowy masters would have us believe, the banks are
afflicted with the financial equivalent of stage four cancer. Not that
anyone on the Street would care to notice. In fact, with this week’s big
stock market gains, Wall Street seems to be literally banking on the
ability of the spinmeisters to hide the financial system’s deathly
pallor with the skill of Sonny Corleone’s mortician.Read More @ RickAckerman.com
by Graham Summers, GainsPainsCapital.com:
The big fat Greek lie being spread throughout the financial community is that Greece has been saved. It’s a lie for the following reasons:
The big fat Greek lie being spread throughout the financial community is that Greece has been saved. It’s a lie for the following reasons:
1) Greece did in fact default
2) Greece now has more debt than it did before the bailout (how does writing off €100 billion Euros in debt and taking on €130 billion Euros in more debt improve this situation?)
3) The Greek economy continues to
implode (youth unemployment over 50%, one in ten Greek youth looking for
jobs abroad, Greek GDP fell 7% in 4Q11)
4) This Second Bailout was indeed a
“Credit event” which the markets have yet to discount (though German
investors are already lining up litigation)
5) Germany’s finance minister has already admitted Greece may need a third bailout.
Read More @ GainsPainsCapital.com
from DollarVigilante.com:
Investing,
and in particular speculating, can be said to be the art of attempting
to guess how stupid most people will be and position yourself to profit
from it.
This has been the case more so than usual lately as the precious metals and gold and silver stocks have pulled back yet again despite there being no valid fundamental reason for them to do so. However, we here at TDV had predicted this possibility and so we are not surprised to see the gold stocks have been sent back out to the woodshed again this week.
Read More @ DollarVigilante.com
Investing,
and in particular speculating, can be said to be the art of attempting
to guess how stupid most people will be and position yourself to profit
from it.This has been the case more so than usual lately as the precious metals and gold and silver stocks have pulled back yet again despite there being no valid fundamental reason for them to do so. However, we here at TDV had predicted this possibility and so we are not surprised to see the gold stocks have been sent back out to the woodshed again this week.
Read More @ DollarVigilante.com
from CFTC.gov:
Dear CFTC Staff,
Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.
Read More @ CFTC.gov
Dear CFTC Staff,
Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.
Read More @ CFTC.gov
from FinancialSense.com:
Jim
welcomes Michael O’Higgins, author of the best-selling book Beating The
Dow, and founder of O’Higgins Asset Management. Michael sees gold
eventually reaching a 1-to-1 ratio with the Dow Jones Index. He is
currently 40% invested in stocks, mostly in Europe and Russia. He still
owns some bonds, prefers platinum over gold and stresses diversification
in this very unpredictable market.Considered one of the top money managers in the United States since 1978, Mr. O’Higgins has been the subject of articles in Time Magazine, Barron’s, Forbes, Business Week, Money Magazine, Financial World, The Wall Street Journal, The New York Times, USA Today, and The Financial Times, as well as being a special guest on CNBC’s Smart Money and a regular guest on PBS’s Nightly Business Report.
Click Here to Listen to the InterviewPlease consider making a small donation, to help cover some of the labor and costs to run this blog.
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