RED ALERT from International Banker: Euro Has Collapsed!

By Silver Doctors:
Yesterday we posted an alert from an international banking contact of Steve Quayle recommending readers close all equity accounts and exit the markets now.
24 hours later, the international banker has again contacted Steve, this time with a RED ALERT that the EURO HAS COLLAPSED UNOFFICIALLY!
The source states that Greeks are now withdrawing €3.5 Billion a day, not the 1 billion being reported, with similar numbers for the rest of the PIIGS.
Read More @ SilverDoctors.com

Germany’s Backing of Redemption Pact Signals End Game for Europe?

by The Daily Bell:
Germany signals shift on €2.3 trillion redemption fund for Europe … the German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion stabilization fund in order to stop the eurozone’s crisis escalating out of control. Officials in Berlin say privately that Chancellor Angela Merkel is willing to drop her vehement opposition to plans for a “European Redemption Pact”, a “sinking fund” that would pay down excess sovereign debt in the eurozone. – UK Telegraph
Dominant Social Theme: One way or another, the EU and euro shall be salvaged.
Free-Market Analysis: Is the Euro-crisis finally coming to an end? Just yesterday, we pointed to the intractability of the larger European position regarding any EU “bailout.”
But we have also previously covered Ambrose Evans-Pritchard‘s reporting on the so-called sinking fund that has been proposed – and increasingly this seems to be a solution that may be headed for adoption. You can see our previous article here: “Nothing But A Full Union Will Do…“
Read More @ TheDailyBell.com

Coordinated Rumor Ramps Risk

Epic. Stocks clambered back up to the 1315 (S&P 500 e-mini Sept 2012 contract) level which has been a critical VWAP level for a few days now amid what was a mildly slow day (though IG credit outperformed from its recent deterioration). Then the rumors started.  Risk assets jolted in a very systemic manner (all highly correlated) as ES popped above last Friday's highs (unable to get close to Monday's open we do note), then as the realization that a pre-emptive warning of 'some' action in the case of 'some' event was simply the status quo anyway and we gave the entire 14 pt ramp back. Then we bounced once again as BoE made some noise on further stimulus if things go pear-shaped and we bounced again (though this time only about 8pts and on very small average trade size we note) as we headed into the close right around last Friday's highs. With OPEX tomorrow, this vol could not be more stop-inducing and painful for many as the Dow has now been -150, +150, -80, and +160 pts this week and decent volume today although average trade size remains limited (on the lack of conviction we pre-suppose). Gold and less so Silver bounced off their earlier spike-down moves and WTI rallied like a champ today (resyncing with Silver just in the green for the week). Gold is up 2% on the week (but was far less impressed with the chatter today than stocks were) as in the meantime the USD dropped and ended -0.75% on the week (and AUD is now 1% stronger). Treasuries whipsawed around but only retraced around a third of their rally from yesterday's morning session as 7Y and 10Y underperformed (+5bps or so). Pre-OPEX VIX is always a mess but we dropped over 2.5 vols into the close to end under 22% (but above Friday's close). Risk assets in general moved together and stayed in sync today during the final hour's carnival with stocks perhaps a little rich by the close.

Mike Krieger Says To Remember The Words Of Joseph Stalin

"What TPTB do not appreciate are the lessons we are all learning from Greece.  We must learn many more lessons though.  We must admit to ourselves that there are truly evil geniuses out there, and in most cases these characters have taken control of the power structure (corporations, politics and factions of the military in most of the nations we reside in).  The necessary action is not for good people to bury their heads in the sand and pretend that such people do not exist.  We must get inside their minds.  We must acknowledge and accept their presence as well as their power and then work tirelessly to relieve them of it.  As Irish statesmen, author and philosopher Edmund Burke so eloquently stated: “All that’s necessary for the forces of evil to win in the world is for enough good men to do nothing.” Let’s just do it already."

S&P: "Spanish Home Prices To Drop Another 25%"

For all the news out of Spain: tumbling sovereign bonds, bailed out banking sector, there really is just one driver of everything: the same one many have been warning about for years: the artificially inflated valuation of the Spanish housing sector. Because the only reason why banks are suddenly finding that their assets are worth much less than previously expected, is because it is now impossible for local banks to keep the real-estate "assets" on their books at marks-to-model (read par) as the bulk of them have long since become impaired, delinquent or outright defaulted.... Which is the worst news for holders of Spanish bonds, now that the entire banking sector is effectively pari passu with the sovereign debt courtesy of priming ESM debt: recall that every incremental dollar, or in this case, euro, of bank capital deficiency will be one more priming bailout euro behind. Effectively there is now an inverse relationship between the Spanish housing sector and the country's sovereign bonds. And for those who are still naively are clutching to Spanish bonds, even as they tumble to all time lows (that's the local law, as opposed to the legal arbitrage trade we have been promoting and which today is making even more money), we have some bad news: that perpetual of optimists, S&P, just said that the Spanish housing sector has, wait for it, another 25% to drop!
This means a comparable drop in store for Spanish bonds and all the related securities in Europe, which courtesy of the bailout are all now daisy-chained.

U.S. to Pay ‘Selected’ Foreign Journalists to Cover State Dept.

from, The Daily Sheeple:

U.S. taxpayers soon will pay for hotel rooms, flights, and even the TV production costs of foreign journalists covering the Department of State. The purported goal of the endeavor is to communicate and promote U.S. policies and “American values.”
The new project comes at a time when State separately is attempting to buy, produce, and disseminate its own media broadcasts, establishing a paid 24/7 “news” service with contractor assistance (see Obama Assembling de facto Propaganda Ministry; U.S. Trade & Aid Monitor, May 6, 2012).
Read More @ TheDailySheeple.com

SP 500 and NDX Futures Daily Charts - The Old Whipsaw Ahead of Quad Witching Expiration

Gold Daily and Silver Weekly Charts - Rough Waters Ahead

Child Born in 2011 May Cost $234,900 to Raise, USDA Says

Eric De Groot at Eric De Groot - 1 hour ago

Unfortunately, this most likely means more children raised by state and federal funds. While austerity backed by creditors looks good on paper, social reality has a nasty way of ensuring that the path of least resistance will be taken. That is, currency devaluation or QE to infinity until confidence breaks. Headline: Child Born in 2011 May Cost $234,900 to Raise, USDA Says A middle-income... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

 

Blaming the Victim and Other Biases and Their Use by the Predator Class To Subvert the Unwary

 

 

Hathaway – Gold, Mining Shares & QE: 2 Persistent Questions

from KingWorldNews:

The protracted correction in gold and precious metals stocks that began in September 2011 appears to have ended. Our conclusion is based on historically reliable gauges of sentiment, valuation and technical factors. (We will publish the specific readings on these gauges with our second quarter investment letter on June 30.)
This basing, in our view, should establish a solid platform to launch both the metals and the related mining shares to new highs within the next year. The investment sentiment for gold and especially mining shares is demoralized and confused. This setting, in our opinion, equates to an outstanding, low risk entry point to both the metals and the shares in anticipation of future monetary debasement.
Question # 1: Gold Price Outlook and QE
The fundamentals that led gold to trade briefly above $1900/oz. nine months ago are, if anything, more compelling and supportive than ever. These include, but are not limited to, sputtering economic conditions, intractable fiscal issues in all Western democracies, the slow motion demise of the euro as a credible reserve currency, a loss of faith in traditional economic prescriptions, alarm at the readiness of policy makers to resort to radical, ad hoc measures to buy time, and general disaffection among disparate social factions with the status quo.
John Hathaway continues @ KingWorldNews.com

 

 

Domestic Deployment: U.S. Army Chief Says Military Will Be Used To Provide “Rapid Response Options” and Address “Challenges in the United States Itself”

by Mac Slavo, SHTFPlan:
As the Department of Homeland Security and local law enforcement fuse into a single militarized policing apparatus for the whole of America through the use of massive surveillance warehouses, eye-in-the-sky drones and hybrid task forces, the U.S. military will continue to expand it’s role in domestic affairs, including in the event of natural disasters and terror related crises. So says Army Chief of Staff Raymond Odierno, who recently penned an article in Foreign Affairs, a propaganda mouthpiece published by the Council of Foreign Relations, an organization well known for having its hand in the economic, financial, social, military and political policies of every developed nation on Earth.

The Council on Foreign Relations (CFR) proposes that the U.S. Army be used to plan, command, and carry out (with the help of civilian law enforcement) domestic police missions…
…the CFR would see the Army used to address “challenges in the United States itself” in order to keep the homeland safe from domestic disasters, including terrorist attacks.
Read More @ SHTFPlan.com

 

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