“We are Preparing for Massive Civil War,” Says DHS Informant

by Dominique de Kevelioc de Bailleul, Beacon Equity Research:
In a riveting interview on TruNews Radio, Wednesday, private investigator Doug Hagmann said high-level, reliable sources told him the U.S. Department of Homeland Security (DHS) is preparing for “massive civil war” in America.
“Folks, we’re getting ready for one massive economic collapse,” Hagmann told TruNews host Rick Wiles.
“We have problems . . . The federal government is preparing for civil uprising,” he added, “so every time you hear about troop movements, every time you hear about movements of military equipment, the militarization of the police, the buying of the ammunition, all of this is . . . they (DHS) are preparing for a massive uprising.”
Read More @ BeaconEquity.com

 

 

Officials Frantic Over Ron Paul Supporters Seizing Control Of GOP

Congressman fills another 4000 seater stadium in California
by Paul Joseph Watson, Prison Planet:
GOP Presidential candidate Ron Paul continues to fill stadiums and attract thousands of people to his campaign events, while the establishment is once again becoming concerned about the effect Paul’s success will have on the national convention in Florida.
Paul drew a crowd of over 4000 people at the California State University at Fullerton campus yesterday at the school’s Titan Stadium.
Enthusiastic supporters were queuing around the block to get into the stadium, as the following video captured by one attendee highlights.
Paul took to the stage to boisterous chants of “President Paul!” and proceeded to outline his ‘Plan to Restore America.’
“Sounds like there’s a revolutionary spirit in town tonight,” Paul said, to thunderous applause. “I’m so encouraged that so many young people saying, ‘Things have got to change.’”
“Our time has come, and it won’t be stopped,” the Congressman noted during a 50-minute long speech. “In the short range, there will be bumps. In the long range, if we are dedicated, we will change this country and we will change the world.”
Read More @ PrisonPlanet.com

Jim Grant: "The Federal Reserve Is The Vampire Squid Of Vampire Squids"

Munch's "The Scream" may be all the rage today, but to Jim Grant, in his latest interview on Bloomberg TV, the record price paid for the painting is not so much a manifestation of modern art as one of modern currency: "This is the flight into things from paper" . Thus begins the latest polemic by the Grant's Interest Rate Observer author whose topic is as so often happens, the Federal Reserve (for his latest definitive expostulatin on why the Fed should be disbanded and why a gold standard should return, delivered from the heart of Liberty 33 itself, read here). The world in which we invest is a world of immense wall to wall manipulations by our friends in Washington. And people get off on Goldman Sachs because it has done this and this, it is pulling wires... The Federal Reserve is the giant squid of squids, it is the vampire squid of vampire squids."

No Fly Zone Set Up Around NATO Summit With Shoot to Kill Orders

by Alex Thomas, The Intel Hub:
Plans to supposedly keep residents safe during the upcoming NATO Summit have been revealed to include a no fly zone within 10 miles of downtown Chicago, complete with full scale shoot to kill orders.
The plans were revealed in a recent shocking CBS news report that quoted an FAA flight advisory.
“The flight advisory was issued by the Federal Aviation Administration. The advisory bans non-commercial aircraft from flying within 10 nautical miles of downtown Chicago and below 18,000 feet.
A nautical mile is about one minute of arc of latitude along any meridian. It amounts to 1,852 meters, or about 1.15078 standard miles,” reported Susanna Song.

“The United States Government may use deadly force against the airborne aircraft, if it is determined that the aircraft poses an imminent security threat,” the advisory says. “Be advised that noncompliance with the published (notice to airmen) may result in the use of force.”

These shoot to kill orders come amid a tremendous amount of police state preparation and outright military planning surrounding the upcoming meeting of NATO military powers, planning that has lead many to speculate about a possible false flag terror attack during the summit.
Read More @ The Intel Hub

Gold Shares Performance Relative To Gold Nearing Historic Extremes

Eric De Groot at Eric De Groot - 3 hours ago

How bad has the gold shares under performance to gold been since 2010? The first response might be bad, but the the correct observation should be extreme. The gold shares to gold ratio produced 4.3 cycle Z-score reading of -2.35. This suggests severe under performance of the gold shares relative to gold through May 2012. This reading is the lowest reading since 2007.05 and seventh... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

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Things Just Got Interesting

Dave in Denver at The Golden Truth - 3 hours ago

Reminder of things to come from the Telegraph UK archives... *Russia backs return to Gold Standard to solve financial crisis...* *Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system....* *Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week...* A long-time friend and colleague had told me early last week that someone he knows who lives in Switzerland said that the financial circles h... more »

 

 

Fabulous Mogambo Essay (FME)

Richard Daughty, a.k.a., 'The Mogambo Guru' at Mogambo Guru Report! - 4 hours ago

I recently had a revelation of sorts, distilled from my merely noticing what happens when passing by my neighbors, out on their stupid lawns, playing with their stupid kids, or washing their stupid cars, or just doing something stupid. I am sure that you wonder how I can tell that they are stupid. Easy. I've been telling them to buy gold, silver and oil, for so long, and to such little effect, even in the face of such enormous gains accruing to those who followed such Fabulous Mogambo Advice (FMA), that one can only conclude that they are stupid or deaf. And I know they are not... more »

 

 

Record deposits at the ECB/lower PMI in China/lackluster auction at Spain/

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 6 hours ago

Good evening Ladies and Gentlemen: Gold closed down as the bankers continue to pound gold.  The shiny metal finished the comex session at $1634.20 down $19.20 on the day. Silver finished  down 65 cents at $29.96 at comex closing time. In the access market, both metals rose as follows: gold:  1636.20 silver: 30.14 gold and silver shares were rising as the bankers are covering their shorts.   more »

 

 

Don't Get Caught Chasing Your Tail

Eric De Groot at Eric De Groot - 8 hours ago

Testing previous resistance as support after the breakout is nothing more than ebb and flow within a market. Those trading short-term technical patterns better be expert traders, because nothing has reversed the long-term breakout and secular up trend. Double tops, heads and shoulders formations, etc, offer only limited reentry guidance. This game is all about control and control... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] more »

 

 

Mining Shares Continue being Pummeled

Trader Dan at Trader Dan's Market Views - 9 hours ago

No matter which way you measure it, the mining shares are systematically being destroyed as the HUI just made a new 52 week low in today's session. What else can be said about these shares that has not already been said - their performance against the price of gold bullion has been atrocious while they have seriously underperformed the broader market since September of last year. Management needs to get out in front of this and where possible, cash profits should be returned in a much larger percentage to the shareholders in the form of a stronger and higher dividend. They have to ... more » 

The Unabridged And Illustrated Federal Budget For Dummies - Part 1: Spending

In a four-part series, on the premise that a picture paints a thousand words, we present, via The Heritage Foundation, everything you wanted to know about the Federal Budget - In Charts. We start with Federal Spending - which is at record levels and is still growing, threatening economic freedom.






 

The Unabridged And Illustrated Federal Budget For Dummies - Part 2: Revenues

In this second part of the four-part series describing the state of the Federal Budget, we present 10 charts courtesy of The Heritage Foundation on Federal Revenues. America’s growing tax burden is a drag on the economy and will reach record levels without policy changes.

The Unabridged And Illustrated Federal Budget For Dummies - Part 3: Debt & Deficits

Excessive spending has created record levels of debt and deficits, and the worst is yet to come, threatening opportunity and prosperity for younger generations. In these 10 charts, via The Heritage Foundation, we highlight the third (and arguably most frightening) in our four-part series on the Federal Budget - Debt & Deficits.

The Unabridged And Illustrated Federal Budget For Dummies - Part 4: Entitlements

In this final part of the four-part series from The Heritage Foundation, we look at the scale of the entitlement society we live in relative to the Federal Budget. Medicare, Medicaid, and Social Security spending is set to explode, placing enormous pressure on other priorities such as defense and the rest of the budget.

Michael Pettis Revisits 12 Predictions On China

In 2006, Michael Pettis (one of the best known on-the-ground academic-and-practitioner experts on China) started making a number of predictions based on what he thought was the necessary and logical development of China’s growth model. Some of these predictions seemed fairly outlandish, especially to China analysts – Chinese and foreign – who had very little knowledge of economic history or other developing countries, but many of them so far have turned out quite well. As more and more analysts are beginning to understand the constraints of the Chinese growth model he thought it might be useful to list some of these predictions to get a sense of what might be still to come. Hold on to your hard-landing hats.

Guest Post: Gold Standard for All, From Nuts to Paul Krugman

Nut cases. That’s what they are. And if you take an interest in them, you are a nut case, too. That’s the consensus among credentialed economists who describe advocates of a return to the monetary regime known as the gold standard. In fact, the economic pack will marginalize you as a weirdo faster than you can say "Jacques Rueff," if you even raise the topic of monetary policy in relation to gold. If we are going to speak of consensus, let’s not forget one that is truly universal: Our economic system stands a good chance of breakdown in coming years. The only way to limit damage from such a breakdown is to ready ourselves to choose other models by learning about them now. Not to do so would be nuts.  

The Real Debate On Gold And Money

If the greatest trick the devil ever pulled was convincing the world he didn’t exist, the greatest trick our central bank ever pulled was convincing the world we couldn’t live without it. For most of that past twenty years, that PR campaign has been centered on the Great “Moderation”, so called because it apparently represented the full embodiment of economic management – a period of unparalleled prosperity, a Golden Age of soft economic central planning. Give the central bank enough “flexibility” and it will produce unmatched economic and financial satisfaction.

Crude Crushed, Stocks Slump, Silver Recouples With Gold

WTI Crude dropped its most in almost five months today, losing around 2.5%, beginning its descent after Draghi somewhat disappointed a hungry markets this morning (after better-than-expected claims data). Silver (which recoupled with Gold today) and Copper also started their drops at that point and extended the losses after the ISM Services miss. Gold leaked lower (though not as much as the rest of the commodity complex) even as the USD (which had been following its typical path of strengthening through the EU day session) dropped as an expectant EUR popped on no rate cuts. Stocks started their slide at the same time but broad risk-assets were in general leading equities lower (more carry FX and commodities than Treasuries today). We had a little bounce in stocks into the European close (up to VWAP) but that quickly fell back, lost today's lows, then broke yesterday's lows heading for one-week lows and the S&P 500's 50DMA. AAPL lost its 50DMA and closed there for the first time since earnings. After some noise around the macro data (and Draghi) this morning, Treasuries were extremely flat - trading in a very narrow range all afternoon - as did FX in general but AUD kept leaking lower (down 2% on the week now) and JPY stable on the week. Equities and credit re-converged today and late in the afternoon as ES (the S&P 500 e-mini futures) caught up to the downside of broad risk assets and stabilized in the late day ahead of tomorrow's noisy and meaningless NFP print. ES volume was average as it traded closest to its 50DMA in a week (and dropped the most in 8 days today closing near its lows of the day) and VIX, while off its highs of the day, closed above 17.5% - its highest close in over a week. While stocks are short-term in line with risk-assets, over the medium-term they remain notably expensive (especially to Treasuries since last week).

Facebook Details IPO Details, Issues Amended S-1

Facebook has just released a revised S-1 filing (link) which list additional information on the IPO. Among the details:

• The IPO would value the company at as much as $74.8 billion, based on a total of 2.138 billion Class A and B shares outstanding after the offering, assuming a $35 share price. Wasn't this supposed to be $100 billion?
• Total shares offered wil be 337,415,352 at a proposed price range of $28-$35 (mid point of the range is $31.50)
  • Primary shares (proceeds going to company) will be 180 million
  • Selling stockholders shares will be 157.4 million: these proceeds will not go to the company
• Facebook estimates: "We estimate that our net proceeds from the sale of the Class A common stock that we are offering will be approximately $5.6 billion, assuming an initial public offering price of $31.50 per share, which is the midpoint of the price range on the cover page of this prospectus"

Rutledge Reads The Tea-Leaves: "We Are Investing On The Crust Of A Melted Marshmallow"

While much of the panel's discussion is the somewhat typical growth, recovery, global diversification mantra of a homogenized investment community, The Milken Institute's 'Reading The Tea-Leaves' panel was dominated by some deeper thoughts from John Rutledge of Safanad SA. John sees the world not as a series of equilibria like any and every mainstream economist but the exact opposite with earthquakes and tsunamis capable of occurring at any time. In three-and-a-half minutes, Rutledge analogizes investing today as "living on the crust of a molten marshmallow" and notes that 'investing' to him now is "trying to figure out situations in which some stupid policy has created a big wedge between returns on different assets that causes people to redeploy capital" and that is what moves prices. Claiming that the two most destructive inventions of the twentieth century were Modern Macroeconomics and Modern Portfolio Theory (which have caused more loss of wealth than anything else he knows), the optimistic father-of-six goes on to discuss the three storm systems that must be navigated in the world currently: 1) Europe; 2) China's growth; 3) the extraordinary growth of Central Bank balance sheets. He concludes with some insights into why not to own bonds and what bonds say about scarcity of future cash-flows, and sees the greatest risk today is that "investors are mentally unprepared for the world we invest in"

In The News Today

May 3, 2012, at 12:31 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

Where has this courage of the citizen gone...

Stand your ground; don’t fire unless fired upon, but if they mean to have a war, let it begin here. –Captain John Parker-Lexington Green, April 18th,1775 





Jim Sinclair’s Commentary

Let keep the Sheeplez shaking so we can exchange more of their freedoms for more of our control. 

Jim Sinclair’s Commentary

Two crooks, the Banksters and the little manipulators together, do not make one saint.

Norwegians take big broker’s trading algos for an expensive ride Submitted by cpowell on Thu, 2012-05-03 01:52. Section: Daily Dispatches
Norwegian Day Traders Cleared of Wrongdoing
By Michael Stothard
Financial Times, London
Wednesday, May 2, 2012
http://www.ft.com/intl/cms/s/0/e2f6d1cc-9447-11e1-bb47-00144feab49a.html
Two Norwegian day traders who outwitted the automated trading system of a big US broker have been cleared of all wrongdoing by the country’s highest court.
The two men were handed suspended prison sentences for market manipulation in 2010 after they worked out how the computerised system would react to certain trading patterns — allowing them to influence the price of low-volume stocks.
Their appeal against that ruling was upheld by the Norwegian Supreme Court on Wednesday, which cleared them of market manipulation. The verdict will please the trading community in Norway, which had come to view the duo as Robin Hood figures, beating the big financial houses at their own game.
More…





Jim Sinclair’s Commentary

QE to infinity, which is debt monetization on steroids, is guaranteed.

Job Cuts Increase 7.1% in April: Challenger Report Published: Thursday, 3 May 2012 | 7:30 AM ET
Antonia Oprita
Deputy News Editor, CNBC.com
Planned job cuts increased by 7.1 percent to 40,559 in April from March, the latest job cut report released by outplacement firm Challenger, Gray&Christmas showed on Thursday.
From the same month a year ago, job cuts were up 11.2 percent and so far this year the number of job cuts has increased by 9.8 percent to 183,653.
But despite the year-on-year increase, the monthly average in the first four months of this year is below the 12-month average of last year, the report pointed out.
April’s job cuts were led by the education sector, with a total of 9,027 planned cuts, up 142 percent from March as school districts continue to be under pressure to cut costs amid massive state and local budget deficits. But the pace of downsizing in the sector fell 32 percent from a year ago, the report added.
Consumer products companies have been the main job cutters for the year, having announced 20,134 planned job cuts through April, 257 percent more than the cuts announced by this point last year.
“Even at its best, job creation is falling well short of what is needed to make a substantial dent in unemployment,” John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.
More…





Jim Sinclair’s Commentary

QE is a certainty with 10,000 denials during its move to infinity.

Our central bankers are intellectually bankrupt By Ron Paul
May 2, 2012 7:54 pm
The financial crisis has fully exposed the intellectual bankruptcy of the world’s central bankers.
Why? Central bankers neglect the fact that interest rates are prices. Manipulating those prices through credit expansion or contraction has real and deleterious effects on the economy. Yet while socialism and centralised economic planning have largely been rejected by free-market economists, the myth persists that central banks are a necessary component of market economies.
These economists understand that having wages or commodity prices established by government fiat would cause shortages, misallocations of capital and hardship. Yet they accept at face value the notion that central banks must determine not only the supply of one particular commodity – money – but also the cost of that commodity via the setting of interest rates.
Printing unlimited amounts of money does not lead to unlimited prosperity. This is readily apparent from observing the Fed’s monetary policy over the past two decades. It has pumped trillions of dollars into the economy, providing money to banks with the hope that this new money will spur lending and, in turn, consumption. These interventions are intended to raise stock prices, lower borrowing costs for companies and individuals, and maintain high housing prices.
But like their predecessors in the 1930s, today’s Fed governors behave as if the height of the credit bubble is the status quo to which we need to return. This confuses money with wealth, and reflects the idea that prosperity stems from high asset prices and large amounts of money and credit.
More…

Norcini – Traders Are Literally on the Edge

May 2, 2012, at 12:42 pm
by Eric King 

Click here to visit Trader Dan Norcini’s website…

Dear CIGAs,

With global investors looking for direction in many of the key markets, today King World News interviewed legendary Jim Sinclair’s chartist, Dan Norcini.  Norcini told KWN that many of these markets have been taking a tremendous toll on traders.  Here is how Norcini described the situation:  “Traders are literally sitting on edge.  As each bit of economic data comes out or each story breaks out of Europe, traders have no conviction as to which way things are going.  So, what’s happening is this lack of conviction, this confusion, has traders jumpy.”
Dan Norcini continues:
“They are afraid of getting caught on the wrong side of the market because the moves, in many cases, are extreme.  Any news that seems to come out and shatter the market psychology, and you end up with some pretty violent moves in these markets. 
As an example, yesterday, almost immediately when the ISM cleared the wires, you had copper moving higher and crude broke above $106.  The stock markets also headed higher and the bond market took a hit.  Traders are jumpy, so they quickly jettison positions, in favor of what they think might be the beginning of a new trend.  That can change again the next day….
Click here to view the full interview on King World News…

 

In The News Today

May 2, 2012, at 12:38 pm
by Jim Sinclair 

The Roman Republic fell, not because of the ambition of Caesar or Augustus, but because it had already long ceased to be in any real sense a republic at all. When the sturdy Roman plebeian, who lived by his own labor, who voted without reward according to his own convictions, and who with his fellows formed in war the terrible Roman legion, had been changed into an idle creature who craved nothing in life save the gratification of a thirst for vapid excitement, who was fed by the state, and directly or indirectly sold his vote to the highest bidder, then the end of the republic was at hand, and nothing could save it. The laws were the same as they had been, but the people behind the laws had changed, and so the laws counted for nothing. –Teddy Roosevelt



Jim Sinclair’s Commentary

When I was a kid this was true!

"No one can afford to be sick anymore. At $15.00 a day in the hospital, it’s too rich for my blood."




Jim Sinclair’s Commentary

Welcome to Arab Spring, the disaster of the century.

Six army battalions called up under emergency orders to meet growing threat on Egypt, Syria borders
Knesset approves IDF request to call up a further 16 battalions if needed By Aaron Kalman May 2, 2012, 3:13 pm Updated: May 2, 2012, 7:53 pm
The IDF has issued emergency call up orders to six reserve battalions in light of new dangers on the Egyptian and Syrian borders. And the Knesset has given the IDF permission to summon a further 16 reserve battalions if necessary, Israeli media reported on Wednesday.
An IDF spokesperson said intelligence assessments called for the deployment of more soldiers.
According to 2008′s Reserve Duty Law, combat soldiers can be called for active reserve duty once every three years, and for short training sessions during the other two. Rising tensions between Israel and Egypt and the ongoing unrest in Syria caused the army to ask the Knesset for special permission to call up more soldiers, more often.
The Foreign Affairs and Defense Committee approved the request recently, enabling the IDF to summon up to 22 battalions for active duty for the second time in three years. Already, the army has called up six of them.
“This signifies that the IDF regards the Egyptian and Syrian borders as the potential source of a greater threat than in the past,” the former deputy chief of staff, Dan Harel, said on Wednesday night.
More…

Jim Sinclair’s Commentary
Fitch better be careful. You know what happened to the last credit agency in the US that dared question the US credit rating.
Fitch warns US growth poses credit threat By Michael Mackenzie in New York
The credit quality of companies is threatened by the uncertain trajectory of the US economy in the coming years, according to a report by Fitch Ratings.
Wednesday’s warning comes at a time when appetite among investors for corporate debt at historically low yields has been strong, with record debt sales in the first quarter of 2012. The average yield on the Barclays US corporate index fell to a record low of 3.26 per cent in March and remains just above that level.
Powering the decline in corporate bond yields has been aggressive policy actions from the Federal Reserve. The injection of liquidity into the financial system via two rounds of quantitative easing in 2009 and 2010, and the central bank’s pledge to maintain near zero overnight interest rates through to at least the end of 2014, has boosted the appeal of owning corporate debt.
Investors have sold lower-yielding Treasuries and sought riskier securities such as corporate debt and equities, bolstered by S&P 500 companies posting record earnings in 2011. Analysts expected higher earnings for 2012 as companies focused on cutting costs and improving the quality of their balance sheets.
But the lacklustre US economic recovery, marked by high unemployment and declining house prices since the recession officially ended in 2009, poses a threat to long-term credit ratings, argued Fitch.
More…

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