End Is Here for Financial Markets, Warns Jim Sinclair

By Peter Cooper, Resource Investor:
Veteran gold trader and a former adviser to the Hunt Brothers in the silver spike of 1980, Jim Sinclair is now saying boldly on his website jsmineset.com that ‘The end is not near, it is here and now’ in reference to the global economy.
That means of course that the time for gold and silver prices to hit the roof is also very close, and much closer than anybody else is currently forecasting. Mr Sinclair is laughing at George Soros for saying that the euro has three months to sort itself out. He thinks it will be lucky to have three weeks.
End Is Here?
After a couple of years of crises in the euro zone market commentators may have become somewhat hardened to bad news and in danger of missing the real denouement when it is actually about to happen.
Read More @ ResourceInvestor.com

Norcini – Global Markets In Extraordinarily Dangerous Situation

from KingWorldNews:
With continued turmoil in global markets, today King World News interviewed highly acclaimed trader Dan Norcini. Norcini warned KWN that “markets are in an extraordinarily dangerous situation” and they “remain at risk of a continued collapse.” Norcini has done a remarkable job of keeping KWN readers around the world way ahead of the curve in terms of the turbulence in these markets. Here is what he had to say about the action in the markets and the precarious situation global investors face: “I think a lot of traders were caught off guard by Bernanke’s testimony yesterday, Eric. It appeared that Janet Yellen had telegraphed that there would be additional monetary stimulus forthcoming almost immediately. Janet Yellen and Bernanke tend to be dovish when it comes to Fed policy, meaning they think along the same mindset.”
“As a result, traders read Yellen’s comments two days ago, pushing for additional monetary accommodation, as leading into a continuation of that thought pattern in Bernanke’s testimony yesterday. So when Bernanke came out with his testimony, again, it caught everybody off guard.
Dan Norcini continues @ KingWorldNews.com

Brodsky On "Gold Monetization And The Big Reset"

"The global banking system is functionally insolvent and will fail without exogenous policy action" is how QBAMCO's Paul Brodsky begins his latest treatise noting that asset monetization (and in, particular, gold monetization) would solve many more problems than it would create. The negatives would merely recognize the balance sheet damage already done and beginning to be manifest (first, in the private sector and now, increasingly in the public sector). The global economy is threatened because, in real terms, it continues to misallocate capital and rolling unfunded debts and debating in the political sphere over the merits and risks of unfunded growth or policy-administered national austerity programs is a futile endeavor. The math suggests strongly neither can work. Brodsky is convinced policy-administered asset monetization would stop the global financial system from seizing, restore sorely needed economic balance, and reset commercial incentives so that real growth can once again gain traction.

"Material Banknote Order Reinstated"

"Fortress Paper Ltd. announces that its wholly-owned subsidiary, Landqart AG, a leading manufacturer of banknote and security papers, has had a material banknote order reinstated. This order was unexpectedly suspended in the fourth quarter of 2011 which negatively impacted the financial results of Landqart's operations in the first half of 2012."

JPM Tries To Explain Why The Bailout Train In Spain Will Lead To Much More Pain

Reports citing European sources state that Eurozone finance ministry officials, followed by finance ministers themselves, will hold conference calls on Saturday. A formal request for Spanish EFSF/ESM/IMF support, solely for the purposes of bank recapitalization, could be announced after these calls, and appears to be the motivation for them. As JPMorgan notes, while the timing of such a request would come as something of a surprise, the substance does not. A key question is whether this request for external support will serve to improve conditions in the Spanish bond market and raise Spain's chances of avoiding a broader support package. Our best guess is that it will not as JPMorgan believe that this is merely a stepping stone to a broader package of support for Spain and that the request for support has at least three negative consequences.

A Game Of Euro Chicken From The German Perspective: "Playing Until the Germans Lose Their Nerve"

"The next stage in the crisis will be blatant blackmail....
With their refusal to accept money from the bailout fund to recapitalize their banks, the Spanish are not far from causing the entire system to explode. They clearly figure that the Germans will lose their nerve and agree to rehabilitate their banks for them without demanding any guarantee in return that things will take a lasting turn for the better."

Credit Beats Stocks In European Financials As Sovereigns Slump

With a quiet start and more violent end to the week, Europe was a technical mess across asset classes. Sovereign bond strength through Thursday seemed much more a story of a missing CDS market (Monday and Tuesday) and basis traders into the end of the week than any underlying confidence. As Spain's and Italy's basis (the spread between CDS and bonds) pushed back up and over zero so sure enough Friday saw their bonds underperforming. Further banking system bailout fears weighing on debt concerns and the contagion to Italy were evident as Italy and Spain gavce up most of the week's gains into the close. Notably France and Austria were significantly wider on the week (burden-sharing). The bailout hopes spureed significant outperformance in European financial credit spreads - both relative to their stocks and the broad credit market overall. The long credit, short stock trade played out as the capital structure effects of any banking bailout were figured into dilution or further encumbrance of whatever equity value is deemed left. Swiss 2Y rates plunged under -30bps today and EURUSD weakened notably (almost roundtripping the week's strength) as clearly the seeming positives of the word 'bailout' are beginning to sink into the reality of what more debt, more encumbrance, and more stigma means for banks and sovereigns now more and more closely tied thanks to LTRO.

New mobile phone app allows travelers to easily report TSA abuses directly to appropriate agencies

by Ethan A. Huff, Natural News:
Sick and tired of dealing with constant maltreatment, profiling, and flat-out abuse by U.S. Transportation Security Administration (TSA) screeners at American airports, a civil rights group known as The Sikh Coalition has created a mobile phone “app” that allows travelers to instantly file complaints with TSA and the Department of Homeland Security (DHS) immediately upon going through airport security.
A brilliant solution to continued TSA abuses, the app, known as FlyRights, provides travelers convenient access to filing official complaints, whether they concern invasive, unconstitutional pat downs; radiation emitting naked body scanners; inappropriate racial or religious profiling; or any other activity deemed inappropriate by travelers. The app is available for both the iPhone and Android platforms.
Read More @ NaturalNews.com

Judge saves Americans from Obama’s NDAA

from RTAmerica:

Gold’s perception problem

by Geoff Candy, MineWeb.com
GRONINGEN (Mineweb) –
There is no mistaking the disappointment markets felt yesterday at Ben Benanke’s “failure” to reward expectations of dovish comment.
Despite the recent poor jobs numbers out of the US, the Fed Chairman’s comments were non-committal, saying that the committee was continually reassessing the situation. Unfortunately for gold, the market was hoping to hear him say that a further bout of QE was imminent and this he didn’t do.
As UBS analyst, Edel Tully points out, however, In reality, gold yesterday responded to the fact that Bernanke’s testimony did not contain much more than general statements, failing to take into account that he was quite clear about leaving all options on the table.”
Read More @ MineWeb.com

Ben Bernanke’s mission impossible

from, Gold Money:
Stocks and commodities performed strongly yesterday, helped by chatter about plans for a eurozone “banking union”, whereby the European Commission in Brussels would take the lead on banking legislation from European Union member states. European stocks had one of their strongest up days of the year in response, while the Dow recorded its strongest session of the year – up nearly 2.5% to 12,414. The euro gained 1% against the dollar, moving back above $1.255.
Crude oil and gold also put in strong showings – at one stage gold moving just above $1,640 – though the yellow metal lost ground later in the session following unexpectedly optimistic Federal Reserve comments about the US economy that gave no hint of more quantitative easing being imminent. However, Fed chairman Ben Bernanke is due to testify before Congress today from 10am EDT (3pm BST), and traders will as ever be scanning his every utterance – perhaps even his body language – for hints as to whether “QE3” is coming. So if gold and silver prices shoot dramatically higher later, as they have a habit of doing whenever Bernanke steps in front of a microphone, you’ll know why.
Read More @ GoldMoney.com

Fitch: US Risks 2013 Rating Downgrade Without ‘Credible’ Deficit Plan

from MoneyNews:

Fitch Ratings reiterated on Thursday it would cut its sovereign credit rating for the United States next year if Washington cannot come to grips with its deficits and create a “credible” fiscal consolidation plan.
It also said it would immediately cut the credit ratings on Cyprus, Ireland, Italy, Spain and Portugal if Greece were to exit the eurozone. Additionally, all eurozone nations would have their ratings put on its negative ratings watch list, setting a six-month time frame for a potential downgrade.
Europe’s ongoing sovereign credit crisis undermines already below-trend growth seen in the United States, the world’s biggest economy. “The United States is the only country (of four major AAA-rated countries) which does not have a credible fiscal consolidation plan.”
Read More @ MoneyNews.com

Expect Surprise Global QE3 to Shock Markets

by Dominique de Kevelioc de Bailleul, Beacon Equity Research:
No hints from the Fed about QE3 is the latest ‘bad’ news coming out of Bernanke’s testimony to Congress this week. Gold sells off.
But Mike Krieger, a regularly featured contributor to zerohedge.com, stated he senses the Fed’s preparatory language to markets before formally announcing policy changes is now null and void.
“I have no idea why anyone is making a big deal about The Bernank’s testimony to Congress today,” Krieger began his article. “There was no way he was going to come out with anything meaningful. . . In fact, I am 100% certain that The Bernank merely wants to toe the line as carefully as possible and at the same time get some nice propaganda out there to the sheeple.”
Read More @ BeaconEquity.com

Bill Murphy on the Latest Precious Metals Cartel Raid

from Gold Seek:
Chris Waltzek interviews Bill Murphy of GATA.org about the latest cartel attack on precious metals – and how nation states like China just keep on stackin’.
Click Here to Listen to the Audio

Which Will Collapse First, The Economy or the Spent Fuel Pool at Fukushima?

By Christina Consolo, The 4th Media:
It’s been two weeks since I wrote my first piece for End the Lie about Fukushima being a possible mass extinction event, and still no progress to report.
Although, there was a somewhat promising appeal made on April 30, when seventy-two Japanese Non-Governmental Organizations sent an urgent request to the United Nations and Japanese government urging immediate action to stabilize the Fukushima Daiichi Nuclear Power Plant Unit 4 spent nuclear fuel. The letter was also endorsed by numerous nuclear experts.
The letter warned the UN and Japanese government that if an earthquake or other event were to cause this pool to drain, a catastrophic radiological fire could ensue.
The letter urged the United Nations to organize a Nuclear Security Summit to take up the crucial problem.
The letter stated that the United Nations should establish an independent assessment team, and coordinate international assistance to stabilize reactor 4′s spent fuel pool in order to prevent a radiological release with potentially catastrophic consequences.
Read More @ 4thmedia.org


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Big Day For Ron Paul: Illinois and Texas State Convention

from Matlarson10:

US Government Still Insisting It Can’t Be Sued Over Warrantless Wiretapping

by Trevor Timm, Activist Post
Once again, the federal government is trying its hardest to prevent the courts from determining whether it has broken (or is still breaking) the law through the NSA’s wiretapping program.
For nearly four years, the Obama Administration has followed in the Bush administration’s footsteps, invoking national security and a variety of procedural hurdles to shield itself from accountability in courts.
In three separate lawsuits that have been churning in the federal courts, the government has used a menu of procedural dodges to block the courts from considering the key underlying question — have they been breaking the law and violating the constitution by warrantlessly surveilling American citizens — over and over again.
Read More @ Activist Post

Home Defense – A Primer on the Shotgun

from The Art of Manliness.com:
Recently I’ve had the itch to buy a shotgun. It started after I read Creek’s post on how to build a survival shotgun. The itch only grew stronger after I became a homeowner (I kind of feel like Kevin McAllister). The shotgun is the perfect weapon for home defense and disaster prep. It’s powerful, reliable, and versatile. You can use it to fend off home intruders, hunt for food, or even shoot skeet with your buds.
But as I’ve discussed before on the site, I’m a complete novice when it comes to guns. I grew up around them, but I just didn’t take an interest in them until recently. Before I brought a shotgun into my house, I wanted make sure I knew how it worked and how to fire it safely and correctly.
Read More @ artofmanliness.com

James Dines – Debt Liquidating Depression & Systemic Failure

from KingWorldNews:
With central planners actively scrambling to address mounting problems facing the United States and Europe, and uncertainty continued uncertainty in global markets, today King World News interviewed legendary James Dines, author of The Dines Letter. Dines told KWN that “a collapse of Europe’s banking system is inevitable” and “the United States is headed towards a Greek tragedy of its own.” Here is what Dines had to say about what is taking place: “The Fed has lowered interest rates to record low levels, and Bernanke has printed unimaginable amounts of money, but it hasn’t worked. Instead of acknowledging that Keynesian economic theories are bankrupt and at a dead end, Bernanke can only wonder if even more of the same medicine might somehow work.”
“Blind repetition of what is not working has been described as insanity, and that is what the Fed is engaged in right now. For many years I’ve been predicting a coming currency upheaval, and we’re in one now, only they don’t see it that way. One of my other predictions has been the coming debt liquidating depression, and we’re observing one right now in Europe.
James Dines continues @ KingWorldNews.com

Euro Breakup Precedent: The 15 State-Ruble Zone Implosion

By Catherine Hickley, Bloomberg:
It was a currency union of 15 states in 1992. Two years later, as budget deficits spiraled out of control, hyperinflation reigned and economies shriveled, just two members of the Soviet Union’s ruble zone were left.
As Greek politicians threaten to break terms of the country’s bailout with international lenders, Spain calls for financial help, and northern European nations balk at funding the south, historians are asking whether the euro region is about to face a similar exodus. They take a longer view of the European Union’s crisis than economists, and it’s much bleaker.
The Soviet experience tells us “an exit like this is messy and leads to loss of income and inflation, and people are right to be scared of it,” said Harold James, a professor of history
at Princeton University whose books include “The End of Globalization: Lessons From the Great Depression.” “It isn’t an attractive analogy at all because the Soviet Union states all had serious troubles for the whole of the 1990s.”
Read More @ Bloomberg

TSA Trippin’ & Dollar Oblivion: All in an Hour’s Flight

by Justin O’Connell, Dollar Vigilante:
Recently, I took a trip to Las Vegas for business. It was my first flight in two years, when I expatriated from the United States to Brazil on a three-month Visa, no savings, no job, no place to live, et cetera. If I had only known about the Dollar Vigilante in those days.
This occasion was simply a jaunt of leisure.  But, leisure I would certainly not find in a U.S. airport. After I interacted with a machine in order to receive my boarding pass and cough up one last extra travel surcharge, I stood spaced out in line awaiting my TSA treatment. I have not been in an airport since the introduction of the naked body scanner, but then I saw it, reducing travelers to a totally blind and unconscious state of obedience. You can’t miss it.
Read More @ DollarVigilante.com

The Avalanche and the Phase Transition of the Financial System

By Greg Canavan, Daily Reckoning:
We’ve been running with the idea that the financial system is now so big and unwieldy that efforts to stimulate will prove increasingly fleeting. Past attempts to ‘do something’ have led to an increasingly complex and distorted economy. More of the same is just making things worse.
So we weren’t surprised to see this headline in the Financial Times this morning…
‘China faces stimulus dilemma’
Doubts already! The only dilemma with previous stimulus calls was how big it should be. Not anymore. Late yesterday, China announced a cut in interest rates, the first since 2008. The People’s Bank of China cut the benchmark one-year lending rate 0.25% to 6.31%. The interest rate paid on deposits also fell 25 basis points, to 3.25%.
Read More @ DailyReckoning.com.au

John Maynard Keynes: A Vision for the Future or a Ghost from the Past?

by Richard Ebeling The Daily Bell:
(This paper was presented as the keynote address at the Seventh Annual Moral Foundations of Capitalism Conference hosted by the Clemson Institute for the Study of Capitalism in Clemson, South Carolina, on May 30, 2012)
The current economic crisis that has engulfed the United States and much of the rest of the world over the last few years, has seen a dramatic revival in the economic ideas and policy prescriptions of the most famous British economist of the 20th century, John Maynard Keynes. This has seemed surprising to some, since it was presumed that traditional Keynesian Economics was more or less relegated (to use Karl Marx‘s phrase) to “the dustbin of history.”
After dominating the economics profession for more than a quarter of a century following the Second World War, Keynesianism had been challenged by various “counter-revolutions” in Macroeconomics beginning in the late 1960s and 1970s. They had taken the forms of Monetarism, Supply-Side Economics, New Classical or Rational Expectations Theory, New Keynesianism, and even Austrian Economics, following the awarding of the Nobel Prize to F. A. Hayek in the 1974.
Read More @ TheDailyBell.com

The euro now equals poverty and deflation

By Daniel Hannan, The Telegraph:
To grasp the sheer unfairness of the euro system, consider Slovakia.
For a few days last October, this nation of five million defied the might of Brussels. Its MPs refused to approve the bail-out fund, arguing that it was wrong for prudent countries to be fined so as to reward profligate ones. The EU
promptly turned its hideous strength against the plucky Carpathian republic. Within five days, the government had fallen and parliament had ratified the fund.

When we read of the latest euro-calamities – three Portuguese banks bailed out yesterday, Cyprus on the point of bankruptcy, retail sales across the eurozone far lower than expected – we feel sympathy rather than panic. Countries in the single currency have no such luxury.
Read More @ Telegraph.co.uk

US braces for tsunami debris, but impact unclear

By Audrey McAvoy and Becky Bohrer, The Associated Press via Yahoo! News:
JUNEAU, Alaska (AP) — More than a year after a tsunami devastated Japan, killing thousands of people and washing millions of tons of debris into the Pacific Ocean, the U.S. government and West Coast states don’t have a cohesive plan for cleaning up the rubble that floats to American shores.
There is also no firm handle yet on just what to expect.
The Japanese government estimates that 1.5 million tons of debris is floating in the ocean from the catastrophe. Some experts in the United States think the bulk of that trash will never reach shore, while others fear a massive, slowly-unfolding environmental disaster.
“I think this is far worse than any oil spill that we’ve ever faced on the West Coast or any other environmental disaster we’ve faced on the West Coast” in terms of the debris’ weight, type and geographic scope, said Chris Pallister, president of a group dedicated to cleaning marine debris from the Alaska coastline.
Read More @ yahoo.com

The Most Sophisticated Cyberweapon Yet?

by Chris Wood, Senior Analyst, Casey Research
“It pretty much redefines the notion of cyberwar and cyberespionage.”
That’s a quote from experts at the Russia-based antivirus firm Kaspersky Lab regarding malware they recently discovered while trying to determine what was deleting sensitive information from computers across the Middle East for the UN’s International Telecommunication Union. While searching for that code, nicknamed Wiper, the group discovered a new, more insidious, malware codenamed Worm.Win32.Flame.
More on that new malware, simply dubbed “Flame,” in a moment. First, some background on the state of cyberwar today. For starters it’s important to recognize that although no cyberwar has ever been declared, cyberwarfare is now a part of life. The war is pervasive and we are all vulnerable to attack.
Read More @ CaseyResearch.com


 
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