by SD Contributor AGXIIK, Silver Doctors:
The choice of presidential candidates today is a choice between debt default in 2022 or 2024. That math is that compelling and incontrovertible. Every empire in the history of mankind has gone this way. We will just be one more huge steaming FIAT cow pie on the historical road to Perdition.
What happens when the velocity of money, now at a depression era lows, accelerates 5-10 times over? There’s $1.5 trillion in banks. If that is released and with leverage becomes $15 to $75 trillion, we will see inflation, PM values and food prices explode. Grandma won’t be crapping her Depends over this. She will be starving. And just because she’s old does not mean she will go down without a fight.
One out of five people in this country don’t have money for food. They are running out money before they run out of month and depend on food banks. These folks live paycheck to paycheck. The ‘pain at the pump’ will make miserable the lives of the 99% of the people without precious metals. They, like the Portuguese, will be selling their wedding rings for food.
Read More @ Silver Doctors
Dear CIGAs,
The choice of presidential candidates today is a choice between debt default in 2022 or 2024. That math is that compelling and incontrovertible. Every empire in the history of mankind has gone this way. We will just be one more huge steaming FIAT cow pie on the historical road to Perdition.
What happens when the velocity of money, now at a depression era lows, accelerates 5-10 times over? There’s $1.5 trillion in banks. If that is released and with leverage becomes $15 to $75 trillion, we will see inflation, PM values and food prices explode. Grandma won’t be crapping her Depends over this. She will be starving. And just because she’s old does not mean she will go down without a fight.
One out of five people in this country don’t have money for food. They are running out money before they run out of month and depend on food banks. These folks live paycheck to paycheck. The ‘pain at the pump’ will make miserable the lives of the 99% of the people without precious metals. They, like the Portuguese, will be selling their wedding rings for food.
Read More @ Silver Doctors
Dear CIGAs,
Stay the course!
The current pressure on gold shares by hedgies is because Romney says, if elected, he will fire Bernanke and will not want to see QE 3.
The current pressure on gold shares by hedgies is because Romney says, if elected, he will fire Bernanke and will not want to see QE 3.
Now what impact does that have to have on Bernanke? I would say he
now really wants to see Obama elected. That speaks very well for huge
stimulus fast and an end of the standoff between the Federal Reserve and
the US legislative.
The hedgies hate gold so they interpret Romney’s statement bearishly. In truth it is the opposite, bullish for gold.
Bernanke has been considered good for the dollar up to now as much as that is mistaken.
Regards,
Jim
Jim
by Chriss Street, Testosterone Pit.com:
Last week we first reported that California Sales Tax Revenue Nose Dives by 33.5% for the month of July, and then Moody’s Warns of Mass California Municipal Bankruptcies.
During the “Great Recession” of the last four years, the California
private sector was forced to slash employment and infrastructure
spending, but the public sector made only modest cut backs. Much of this
state and local spending was funded by selling municipal bonds to
elderly investor who were told the “muni market” was safe, because the
default rate is very low.
But a new Federal Reserve study, “The Untold Story of Municipal Bond Defaults”, debunks that municipal bonds are safe investments and blames the Moody’s and S&P credit rating agencies for deceiving the public. This is sure to fan the flames of the growing panic among holders of California municipal debt.
According to the August 15th report the by the Federal Reserve of New York:
Last week we first reported that California Sales Tax Revenue Nose Dives by 33.5% for the month of July, and then Moody’s Warns of Mass California Municipal Bankruptcies.
During the “Great Recession” of the last four years, the California
private sector was forced to slash employment and infrastructure
spending, but the public sector made only modest cut backs. Much of this
state and local spending was funded by selling municipal bonds to
elderly investor who were told the “muni market” was safe, because the
default rate is very low.But a new Federal Reserve study, “The Untold Story of Municipal Bond Defaults”, debunks that municipal bonds are safe investments and blames the Moody’s and S&P credit rating agencies for deceiving the public. This is sure to fan the flames of the growing panic among holders of California municipal debt.
According to the August 15th report the by the Federal Reserve of New York:
The $3.7 trillion U.S. municipal bond market is perhaps best known for its federal tax exemption on individuals and its low default rate relative to other fixed-income securities. These two features have resulted in household investors dominating the ranks of municipal bond holders.
Read More @ TestosteronePit.com
For Marc Faber The Iron 'Ore' Lady Has Sung
Frustrated
with the know-it-all bullish 'experts' on the Chinese economy
lambasting wise boots-on-the-ground deep-thinkers such as Hugh Hendry
and Albert Edwards; Marc Faber (who discussed this in detail in the clip we presented here) today set about correcting some of that vacuous chatter on China's dominance (with all its current stuffed inventory).
Noting that the Chinese stock market is not exactly pointing to the
growth everyone is relying on (and we add since the MAR09 lows it is
only fractionally better than Spain), Faber brings up one chart
(courtesy of The Bank Credit Analyst) to rule them all. Alongside the mega-bubbles of: Gold in 1970s, the Nikkei in the 80s, and the Nasdaq in the 90s, Iron Ore prices since the start of 2000 have them all beat - and recently (as we noted here) have begun to roll over.Law Enforcement is Not Your Friend...
Across the West, instances of abuse of authority by domestic police forces are becoming more prevalent. Just last week on August 16, 2012, former Marine Brandon Raub was forcibly taken from his home in Chesterfield Country, Virginia and is currently being held
against his will in a psychiatric hospital. His alleged crime he has
yet to be charged for? It’s quite easy to understand why law
enforcement, as a vital enforcement arm of government, uses its
authority so recklessly and with little impunity. The state’s monopoly on violence ultimately acts as a hindrance to social cooperation and rising living standards.
It is regressive in the sense that monopolies have no incentive to meet
the needs of consumers. In the end, law enforcement in its current form
should not be looked to as a friend of peace but merely as another
branch of the state’s institutionalized thuggery.Trends in U.S. Military Spending
Military
budgets are only one gauge of military power. A given financial
commitment may be adequate or inadequate depending on the number and
capability of a nation's adversaries, how well it spends its investment,
and what it seeks to accomplish, among other factors. Nevertheless, trends in military spending do reveal something about a country's capacity for coercion. The following charts, from the Council of Foreign Relations, present historical trends in U.S. military spending and analyze the forces that may drive it lower.Asia posts disappointing PMI followed by Europe/Poor Confidence numbers from Germany/
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 6 hours ago
Good
evening Ladies and Gentlemen:
Gold closed up smartly again today to the tune of $32.20 finishing the
comex session at $1669.60.
Silver also had a good day closing at $30.45 up 90 cents.
In the access market at 5 pm:
gold: $1670.50
silver: $30.58
Today started off with a bang with the poor PMI out of China for a three
year low. It's readings are below 50 which means contraction of theFood Prices & The Solar Cycle
As
Jevons alludes to — and especially in a world where most of us live
in an irrigated industrial society — it would seem that there are many
other significant factors in determining both long and short term
variations in food price — technology shocks, wars, energy shocks,
social changes. Food prices are a complex and multi-dimensional equation
with a lot of variables. But the impressive thing is that even in a
modern agriculturally mechanised and industrialised economy there
remains a discernable underlying association between food prices and
the solar cycle.Why One SEC Commissioner Spoiled The Fed And Treasury's Plan For Money Market Capital Controls: In His Words
Beginning in January of 2010, and continuing into July of this year, we explained how one of the most insidious attempts at capital controls undertaken by the authorities, namely to replace the $1.00 NAV method that money markets have employed since inception, forcing money markets to imposed capital buffers, and most importantly, to enact mandatory gating if and when the time comes for investors to withdraw their money when they so desired, was taking shape. In other words, to institute capital controls when it comes to money market funds. We already explained that the idea to kill money markets is not new, and originated at the Group of 30 many years ago (its members explain its interests vividly enough) , as an attempt to have investors voluntarily shift their capital allocation out of a liquid but very much inert from the fractional reserve banking system $2.7 trillion market into other liquid, but fractional banking levered markets such as stocks and bonds. In essence, this would generate an up to $2.7 trillion incremental demand as those invested in money markets would find it more "appealing" to keep their cash equivalents in the "security" of 150x P/E stocks like Amazon, or in the worst case, Treasury Bills. After all faced with the option of being "gated" or investing their money in other "non capital controlled" markets, one would be an idiot to pick the former. This is precisely what Mary Schapiro hoped would be the case when she put the vote to the SEC, only to find that she couldn't even get a majority to support her own proposal (which as a reminder was supported by two Fed presidents: uber doves Eric Rosengren of Boston and William Dudley of New York, and Treasury Secretary Timothy Geithner) in her own co-opted house. It is also the reason one person decided to vote against Schapiro's proposal - Luis Aguilar. His explanation why he voted against money market fund capital controls is attached.Republicans Consider Returning To Gold Standard: Real Or Red Herring?
Stranger than fiction perhaps but the FT is reporting that the
gold standard has returned to mainstream US politics for the first
time in 30 years with a 'gold commission' set to become part of
official Republican party policy. While this could simply be a
reach for as many Ron Paul marginal voters as possible (with the view
that the GOP would never really go for it); it appears drafts of the
party platform from the forthcoming rain-soaked convention call for an
audit of the Fed and a commission to look at restoring the link between
the dollar and gold. The FT, citing a spokesperson, adds that "There is a growing
recognition within the Republican party and in America more generally
that we’re not going to be able to print our way to prosperity,"
but "We’re not going to go from a standing start to the gold
standard," although it would provide a chance to educate politicians
and the public about the merits of a return to gold. Interestingly, the
Republican platform in 1980 referred to "restoration of a dependable
monetary standard", while the 1984 platform said that "the gold standard
may be a useful mechanism."en Swann Reality Check takes a look at how the RNC is attempting to change the 5 state rule and decredential the entire Maine delegation only 4 days before the Republican National Convention
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from KingWorldNews:
Today Egon von Greyerz told King World News, “This is going to be one of the fastest moves that we’ve seen in this bull market (in gold).” Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “… silver is going to move a lot faster than gold.” He also cautioned, “… The ascent is going to be mind boggling.”
Here is what Greyerz had to say: “Eric, this is a good day to talk because the breakout we have been talking about is happening here and now. It had to come, both technically and fundamentally. We are always looking at this market from a fundamental point of view, but the technicals are now confirming the breakout.
This is going to be one of the fastest moves that we’ve seen in this bull market. We are now talking about gold moving, without any major correction, to the next major target of $4,500 to $5,000. That might seem incredible, but it’s reality. This is a technical target.
But what’s happening in the world, the mess we are in and the QE that will follow, that will be the catalyst that will drive gold up to unbelievable heights….”
von Greyerz continues @ KingWorldNews.com
Today Egon von Greyerz told King World News, “This is going to be one of the fastest moves that we’ve seen in this bull market (in gold).” Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “… silver is going to move a lot faster than gold.” He also cautioned, “… The ascent is going to be mind boggling.”
Here is what Greyerz had to say: “Eric, this is a good day to talk because the breakout we have been talking about is happening here and now. It had to come, both technically and fundamentally. We are always looking at this market from a fundamental point of view, but the technicals are now confirming the breakout.
This is going to be one of the fastest moves that we’ve seen in this bull market. We are now talking about gold moving, without any major correction, to the next major target of $4,500 to $5,000. That might seem incredible, but it’s reality. This is a technical target.
But what’s happening in the world, the mess we are in and the QE that will follow, that will be the catalyst that will drive gold up to unbelievable heights….”
von Greyerz continues @ KingWorldNews.com
by Charles Hugh Smith, Of Two Minds:
The central illusion of Central Planning everywhere is that distributing insolvency will somehow magically create solvency.
I recently received a brief but powerful summary of the global financial system’s intrinsic instability and unsustainability from correspondent Ray W., author of A Change in the Weather.
One key point is that spreading insolvency (debts that will never be paid back, debt based on totally phantom assets) over a populace does not somehow conjure up a solvent financial system or State. Distributing insolvency only destroys the last remaining islands of solvency in a bankrupt world.
The entire global financial “recovery” engineered by central banks and Central Planning is based on the absurd notion that if we spread unpayable debt over the entire body politic (be it a nation or regional entity such as the European Union) then that distribution will somehow make the debt payable and the phantom assets real.
The debt remains unpayable and the assets (collateral) remain stubbornly phantom. As for adding more debt (selling Eurobonds, Treasury bonds, etc.), please note the diminishing return on additional debt: it is now negative.
Read More @ OfTwoMinds.com
The central illusion of Central Planning everywhere is that distributing insolvency will somehow magically create solvency.I recently received a brief but powerful summary of the global financial system’s intrinsic instability and unsustainability from correspondent Ray W., author of A Change in the Weather.
One key point is that spreading insolvency (debts that will never be paid back, debt based on totally phantom assets) over a populace does not somehow conjure up a solvent financial system or State. Distributing insolvency only destroys the last remaining islands of solvency in a bankrupt world.
The entire global financial “recovery” engineered by central banks and Central Planning is based on the absurd notion that if we spread unpayable debt over the entire body politic (be it a nation or regional entity such as the European Union) then that distribution will somehow make the debt payable and the phantom assets real.
The debt remains unpayable and the assets (collateral) remain stubbornly phantom. As for adding more debt (selling Eurobonds, Treasury bonds, etc.), please note the diminishing return on additional debt: it is now negative.
Read More @ OfTwoMinds.com
by Simon Black, Sovereign Man :
On the way from San Marino yesterday, I had to stop for some gas near Rimini, a beautiful beach town on Italy’s Adriatic coast. As an aside, Italian gas prices are among the highest in Europe… and the world… at €1.77 per liter (almost USD $8.50 per gallon). Naturally, the vast majority of this is due to taxes. From the € 1.77 per liter, only about € 0.48 can be attributed to the price of oil. Profit margin and distribution costs run about € 0.28. The rest of it (just over 1 euro) is tax. This amounts to an effective tax rate of over 130% on fuel.
Anyhow, when I pulled in to the gas station, I whipped out my American Express card and asked the attendant in broken Italian to turn on the pump. He acted like I had just punched him in the gut, wincing when he saw my credit card. “No… cash, only cash,” he said. I didn’t have very much cash on me, so I drove to the next station where a similar experience awaited me.
This is a trend that is typical when economies are in decline– cash is king. Businesses often won’t want to spend the extra 2.5% on credit card merchant fees… but more importantly, distrust of the banking system and a debilitatingly extractive tax system pushes people into cash transactions.
Read More @ SovereignMan.com
On the way from San Marino yesterday, I had to stop for some gas near Rimini, a beautiful beach town on Italy’s Adriatic coast. As an aside, Italian gas prices are among the highest in Europe… and the world… at €1.77 per liter (almost USD $8.50 per gallon). Naturally, the vast majority of this is due to taxes. From the € 1.77 per liter, only about € 0.48 can be attributed to the price of oil. Profit margin and distribution costs run about € 0.28. The rest of it (just over 1 euro) is tax. This amounts to an effective tax rate of over 130% on fuel.
Anyhow, when I pulled in to the gas station, I whipped out my American Express card and asked the attendant in broken Italian to turn on the pump. He acted like I had just punched him in the gut, wincing when he saw my credit card. “No… cash, only cash,” he said. I didn’t have very much cash on me, so I drove to the next station where a similar experience awaited me.
This is a trend that is typical when economies are in decline– cash is king. Businesses often won’t want to spend the extra 2.5% on credit card merchant fees… but more importantly, distrust of the banking system and a debilitatingly extractive tax system pushes people into cash transactions.
Read More @ SovereignMan.com
by Sean Rakhimov, Silver Seek:
It has been a while since we had this nagging feeling that we’re witnessing something profound taking place before our eyes and the market doesn’t seem to grasp it yet. We are not talking about the smorgasbord of events effecting markets all over the globe that is receiving ample coverage elsewhere in the media. As readers might know, our particular interest is in the silver space, and that is where we see an elephant in the room that hasn’t made headlines yet.
It has been a while since we had this nagging feeling that we’re witnessing something profound taking place before our eyes and the market doesn’t seem to grasp it yet. We are not talking about the smorgasbord of events effecting markets all over the globe that is receiving ample coverage elsewhere in the media. As readers might know, our particular interest is in the silver space, and that is where we see an elephant in the room that hasn’t made headlines yet.
No doubt most readers are aware of the recent
developments in countries like Argentina, Bolivia, Peru and others, with
respect to what can be broadly classified as “resource nationalism”.
Our general views on the subject were detailed a few years ago, here. As
discussed by this writer and others, such developments are not new and
certainly not limited to silver or even the mining sector. However, in our opinion, it is in the silver space that these events should have the most profound effect.
Why? Because the silver sector is so small and the
above mentioned countries collectively make up a big of chunk of it.
According to CPM Group’s 2012 Silver Yearbook, the aforementioned countries are projected to produce some 170 Moz
silver this year versus the anticipated total global silver production
of 788 Moz. While at first glance that only makes up 21.6% of total
annual mine supply, which in itself is significant, we submit that it
represents an even greater percentage of “investible” silver production.
Read More @ SilverSeek.com
A big disaster drill coming to Maple Valley, Covington WA
by TJ Mertinell, Maple Valley Reporter:
If
you wake up to see helicopters in the sky Wednesday and fire engines
blaring outside your home, just know it’s only a drill, a really big
one.
Court documents claim another trader changed Libor submission even though he was part of Japanese yen swap desk in London
by Julia Kollewe, Guardian:
A former trader for Royal Bank of Scotland Group has claimed that the bank’s internal checks were so lax that anyone could change Libor rates.
More than a dozen banks, including RBS, are under investigation by regulators in the US, Europe and Asia for suspected rigging of the London interbank offered rate (Libor), which is used to price trillions of dollars of financial products. Barclays was fined £290m in June by US and UK regulators for its role in trying to manipulate the price of the interest rates, which affect the cost of borrowing for millions of customers around the world.
Court documents filed in Singapore show that Tan Chi Min, who is suing RBS for wrongful dismissal, claimed that in 2008 a trader for the bank, Will Hall, changed the Libor submission himself even though he was part of the Japanese yen swap desk in London.
The papers reported that Tan then raised the issue at his disciplinary meeting last September, saying that the bank’s internal procedure in London seemed to be that “anyone can change Libor”.
Read More @ Guardian.co.uk
by TJ Mertinell, Maple Valley Reporter:
If
you wake up to see helicopters in the sky Wednesday and fire engines
blaring outside your home, just know it’s only a drill, a really big
one.
The Kent, Maple Valley and Black Diamond
fire departments will all participate in a large scale regional exercise
in the Maple Valley area on Aug. 29.
The exercise will simulate a breach in the Howard Hanson Dam,
which would cause the Green River to flood the surrounding areas. The
exercise will utilize a mobile State DEM Air Branch to coordinate the
deployment of all regional aviation assets in support of anticipated
local mission requests.
Kyle Moore, a spokesman for the Seattle Fire Department, said the exercise is part of the Urban Areas Securities Initiative (UASI) under the Department of Homeland Security.
Moore explained that the UASI is
made up of cities where potential disasters, either natural or terrorist
attacks, would require the response of multiple agencies on a very
large scale.
“This all came about because of Sept. 11.,”
Moore said. “The federal government decided this is something where the
federal government can’t save everyone, especially early on in a
disaster. They realized the regions have to be able to handle it
themselves…so they set up a system of cities or regions considered areas
where they wanted to give money to to train, test give equipment,
resources to … what it requires is each jurisdiction got a different
piece of equipment or material. One agency cannot handle it all itself.
It’s going to require all these agencies to work together.”
Read more @ MapleValleyReporter.com
by Christopher Barker, The Motley Fool:
While silver and gold prices shake off the summer doldrums and appear set to resume their multiyear advance, let’s take this opportunity to delve into key elements of silver supply and demand.
Silver stocks are rapidly waking up from a long and excruciating slumber. Atop a 9% advance for bullion proxy iShares Silver Trust (NYSE: SLV ) over the past month, popular investment vehicles Silver Wheaton (NYSE: SLW ) and First Majestic Silver (NYSE: AG ) have recorded precious surges of 24% and 30%, respectively. But rather than taking my word that far greater gains remain in the cards for these quality silver investments, Fools must analyze for themselves the underlying dynamics of supply and demand before deciding whether they share my bullish outlook.
The modest scale of the silver market overall, in contrast to the unimaginably massive universe of heavily leveraged derivatives that continues to threaten the financial system at large, may offer some context for the gut-wrenching volatility that scares some investors away from silver entirely. For my part, I’m more interested in seeing what the small scale of the silver market will mean for prices in the very likely scenario in which global silver investment demand continues to gather steam.
Read More @ fool.com
While silver and gold prices shake off the summer doldrums and appear set to resume their multiyear advance, let’s take this opportunity to delve into key elements of silver supply and demand.
Silver stocks are rapidly waking up from a long and excruciating slumber. Atop a 9% advance for bullion proxy iShares Silver Trust (NYSE: SLV ) over the past month, popular investment vehicles Silver Wheaton (NYSE: SLW ) and First Majestic Silver (NYSE: AG ) have recorded precious surges of 24% and 30%, respectively. But rather than taking my word that far greater gains remain in the cards for these quality silver investments, Fools must analyze for themselves the underlying dynamics of supply and demand before deciding whether they share my bullish outlook.
The modest scale of the silver market overall, in contrast to the unimaginably massive universe of heavily leveraged derivatives that continues to threaten the financial system at large, may offer some context for the gut-wrenching volatility that scares some investors away from silver entirely. For my part, I’m more interested in seeing what the small scale of the silver market will mean for prices in the very likely scenario in which global silver investment demand continues to gather steam.
Read More @ fool.com
from Jesse’s Café Américain:
Heavy handed and amateurish performance by the ‘journalists’ was the name of the game in this interview which CNBC conducted with former TARP inspector general Neil Barofsky.
I think Barofsky was taken aback and kept off balance for much of the interview, and did not present some of the alternatives to TARP that could have been discussed in a more intelligent and less adversarial venue. I would have thought a former federal prosecutor would have been tougher, but I think he came in expecting a rational discussion and not a tag team group takedown.
This performance represents the level of journalistic quality and objectivity of its parent NBC, which is one of the corporate arms of General Electric. And such a disregard for any pretense to journalistic principles is no longer the exception.
Maybe I am missing something but it seems astonishing that a major financial network can feature a stock advisor who bragged on tape about how he used reporters for planting stories favorable to his market manipulation to cheat the public when he ran a hedge fund, and apparently sees nothing wrong with it, up to and including breaking the law.
Read More @ Jesse’s Café Américain:
Heavy handed and amateurish performance by the ‘journalists’ was the name of the game in this interview which CNBC conducted with former TARP inspector general Neil Barofsky.
I think Barofsky was taken aback and kept off balance for much of the interview, and did not present some of the alternatives to TARP that could have been discussed in a more intelligent and less adversarial venue. I would have thought a former federal prosecutor would have been tougher, but I think he came in expecting a rational discussion and not a tag team group takedown.
This performance represents the level of journalistic quality and objectivity of its parent NBC, which is one of the corporate arms of General Electric. And such a disregard for any pretense to journalistic principles is no longer the exception.
Maybe I am missing something but it seems astonishing that a major financial network can feature a stock advisor who bragged on tape about how he used reporters for planting stories favorable to his market manipulation to cheat the public when he ran a hedge fund, and apparently sees nothing wrong with it, up to and including breaking the law.
Read More @ Jesse’s Café Américain:
from KingWorldNews:
Today John Mauldin stunned King World News when he went into detail about events that will, “… be a shock to the world.” Mauldin, President of Millennium Wave Securities, also warned, “Nobody sees that coming.” Here is what Mauldin had to say: “The problem is the deficit. We hit the wall, I don’t think most people really understand how catastrophic it would be to hit that wall. It’s just something that we haven’t seen in the US. It’s not in anybody’s lifetime experience, and it would be ugly.
If you want to know what it looks like, go to Spain, go to Greece, go to Argentina. Go to any one of a couple hundred countries that have hit that wall. There is a wall. There is a limit. It’s more difficult this time. We’ve got a deeper, bigger problems.
If you were looking at a stock chart, of the ability of this Congress to work together, it would not be a stock you would buy….”
John Mauldin continues @ KingWorldNews.com
Today John Mauldin stunned King World News when he went into detail about events that will, “… be a shock to the world.” Mauldin, President of Millennium Wave Securities, also warned, “Nobody sees that coming.” Here is what Mauldin had to say: “The problem is the deficit. We hit the wall, I don’t think most people really understand how catastrophic it would be to hit that wall. It’s just something that we haven’t seen in the US. It’s not in anybody’s lifetime experience, and it would be ugly.
If you want to know what it looks like, go to Spain, go to Greece, go to Argentina. Go to any one of a couple hundred countries that have hit that wall. There is a wall. There is a limit. It’s more difficult this time. We’ve got a deeper, bigger problems.
If you were looking at a stock chart, of the ability of this Congress to work together, it would not be a stock you would buy….”
John Mauldin continues @ KingWorldNews.com
by Julia Kollewe, Guardian:
A former trader for Royal Bank of Scotland Group has claimed that the bank’s internal checks were so lax that anyone could change Libor rates.More than a dozen banks, including RBS, are under investigation by regulators in the US, Europe and Asia for suspected rigging of the London interbank offered rate (Libor), which is used to price trillions of dollars of financial products. Barclays was fined £290m in June by US and UK regulators for its role in trying to manipulate the price of the interest rates, which affect the cost of borrowing for millions of customers around the world.
Court documents filed in Singapore show that Tan Chi Min, who is suing RBS for wrongful dismissal, claimed that in 2008 a trader for the bank, Will Hall, changed the Libor submission himself even though he was part of the Japanese yen swap desk in London.
The papers reported that Tan then raised the issue at his disciplinary meeting last September, saying that the bank’s internal procedure in London seemed to be that “anyone can change Libor”.
Read More @ Guardian.co.uk
from WTVR:
A Hopewell circuit court judge has ordered that a Marine veteran
detained over anti-government Facebook posts be released from a
psychiatric hospital.
CBS 6 News’ Catie Beck said the Judge Allan Sharrett dismissed the case Thursday against Brandon Raub. The judge said the original petition for Raub’s detention contained no facts. In other words, there was no information on why Raub was being held — and the judge deemed this violated his civil liberties.
As a result, the judge ruled the government had no grounds to hold Raub.
Beck said the judge is in the process of writing an order for Raub’s release. He is expected to be released from a the hospital in Salem, Virginia Thursday afternoon.
The decorated U.S. Marine veteran was questioned by FBI agents about his Facebook postings and then hauled away from his Chesterfield County home in handcuffs last Thursday.
Read More @ WTVR.com
A Hopewell circuit court judge has ordered that a Marine veteran
detained over anti-government Facebook posts be released from a
psychiatric hospital.CBS 6 News’ Catie Beck said the Judge Allan Sharrett dismissed the case Thursday against Brandon Raub. The judge said the original petition for Raub’s detention contained no facts. In other words, there was no information on why Raub was being held — and the judge deemed this violated his civil liberties.
As a result, the judge ruled the government had no grounds to hold Raub.
Beck said the judge is in the process of writing an order for Raub’s release. He is expected to be released from a the hospital in Salem, Virginia Thursday afternoon.
The decorated U.S. Marine veteran was questioned by FBI agents about his Facebook postings and then hauled away from his Chesterfield County home in handcuffs last Thursday.
Read More @ WTVR.com
from Silver Vigilante:
Gold, silver, platinum and palladium have all recently moved up in
price, with platinum, silver and gold leading the complex. Below are 15
reasons why.
Gold is teasing the $1700 psychological resistance marker, whilst silver has broken out above $30, and will no begin targeting the many resistance points in the mid $30 range before taking out the JP Morgan stock price, which will be bullish for the poor man’s gold if not so for the TBTF bank.
Within the context of governments across the world regurgitating fiat at dizzying rates, numerous reasons exist for wherefore the metals appreciate. Silver traded at 27.90 in US markets on July 31. By Thursday, the price had broken out above $30, closing in on $31. Very little resistance was faced at the $29.90 level. And so, silver, after having tested $28 thirty-eight times, has now punched through the violent resistance.
Gold today made noticeable gains after somewhat stealthily breaking out to $1,640. Platinum, also, in the wake of South African mine turmoil, where 80% of the world’s platinum is mined, has broken out well above the $1,400 resistance level it had seen for a number of weeks.
So clearly, gold and silver are now heading higher. Below is a list of some of the immediate reasons.
Read More @ Silver Vigilante
Gold, silver, platinum and palladium have all recently moved up in
price, with platinum, silver and gold leading the complex. Below are 15
reasons why.Gold is teasing the $1700 psychological resistance marker, whilst silver has broken out above $30, and will no begin targeting the many resistance points in the mid $30 range before taking out the JP Morgan stock price, which will be bullish for the poor man’s gold if not so for the TBTF bank.
Within the context of governments across the world regurgitating fiat at dizzying rates, numerous reasons exist for wherefore the metals appreciate. Silver traded at 27.90 in US markets on July 31. By Thursday, the price had broken out above $30, closing in on $31. Very little resistance was faced at the $29.90 level. And so, silver, after having tested $28 thirty-eight times, has now punched through the violent resistance.
Gold today made noticeable gains after somewhat stealthily breaking out to $1,640. Platinum, also, in the wake of South African mine turmoil, where 80% of the world’s platinum is mined, has broken out well above the $1,400 resistance level it had seen for a number of weeks.
So clearly, gold and silver are now heading higher. Below is a list of some of the immediate reasons.
Read More @ Silver Vigilante
by Bill Holter, MilesFranklin.com:
You know that they want to, QE that is, by the Fed. Not only do they
want to, they really need to. If you recall the chart of velocity
(crashing below 1933 Depression levels), the Fed absolutely MUST pump
more into the system. The U.S. economic numbers, even after thorough
massages are showing stagnation at best. Globally, the picture is the
same, the world’s economy is in decline. But, the Fed has a problem on
it’s hands, we are being told on a daily basis that everything is well
and the stock markets, even without any volume are not at levels to
justify more QE. This is a very BIG dilemma!
Our central planners have made a big mistake in this area, they have assured us that all is well and their “remedies” were working, they have even pumped up the stock markets to “prove” this to us. Another little blunder is the fact that we have an election coming up in less than 90 days, how good will it “look” for the Fed to ease in front of an election? I’m not positive but other than back in 2008, I don’t think the Fed has EVER eased with less than 6 months to go until an election. Then you must ask, what kind of signal will this send? Do investors put on their party hats? Does the PPT pump up equities to fulfill the script? OR… do we get some sort “pukage” event where investors think it through and begin to dump everything? The thought process could go something like…things must be really bad, or… we are 5 years, 20+ acronyms and how many easings into this thing and nothing has worked, why will THIS one be different? All I can say is that the stock market is at a very dangerous juncture and the Fed is coming very close to it’s bluff being called.
Read more @ MilesFranklin.com
from RussiaToday:
You know that they want to, QE that is, by the Fed. Not only do they
want to, they really need to. If you recall the chart of velocity
(crashing below 1933 Depression levels), the Fed absolutely MUST pump
more into the system. The U.S. economic numbers, even after thorough
massages are showing stagnation at best. Globally, the picture is the
same, the world’s economy is in decline. But, the Fed has a problem on
it’s hands, we are being told on a daily basis that everything is well
and the stock markets, even without any volume are not at levels to
justify more QE. This is a very BIG dilemma!Our central planners have made a big mistake in this area, they have assured us that all is well and their “remedies” were working, they have even pumped up the stock markets to “prove” this to us. Another little blunder is the fact that we have an election coming up in less than 90 days, how good will it “look” for the Fed to ease in front of an election? I’m not positive but other than back in 2008, I don’t think the Fed has EVER eased with less than 6 months to go until an election. Then you must ask, what kind of signal will this send? Do investors put on their party hats? Does the PPT pump up equities to fulfill the script? OR… do we get some sort “pukage” event where investors think it through and begin to dump everything? The thought process could go something like…things must be really bad, or… we are 5 years, 20+ acronyms and how many easings into this thing and nothing has worked, why will THIS one be different? All I can say is that the stock market is at a very dangerous juncture and the Fed is coming very close to it’s bluff being called.
Read more @ MilesFranklin.com
from RussiaToday:
from Zero Hedge:
UPDATE: Added Romney’s Bernanke-Busting Clip
With Romney’s comments (that QE2 didn’t work, that he doesn’t back QE3, and that Bernanke should go) somewhat cornering the Fed-Head’s decision-making, CNBC’s Rick Santelli’s comments this morning are even more prescient. The Chicago truth-sayer vociferously noted the increasingly politicized Federal Reserve actions, highlighting Schumer’s recent ‘demand’ that Bernanke do his job. With Bullard this morning noting that muddle-through was not enough to justify the size of QE3 the market seems to be anticipating, it appears any actions by the Fed in the near-term can only be seen as political. The only way to justify any sizable NEW QE is then surely for the market to crash – and with Spain’s no-bailout-soon, and Merkel back in the headlines, who knows what’s possible. One thing is certain: under Romney the country will need a Fed Chairman. And if it is not Bernanke, despite Glenn Hubbard’s promises yesterday, one very likely name will be Hubbard’s close friend and co-author: Goldman’s Bill Dudley, who now runs the NY Fed. One wonders which choice will be worse for the country (if not for gold longs) – the Chairsatan or Bill Dudley? Of course, look for Obama to retaliate and promise to para-drop dolla dolla billz if elected. Critically, the wizened ex-Gold trader Santelli notes the precious metal knows this and is acting as a barometer of anxiety in this stand-off.
Read More @ Zero Hedge
UPDATE: Added Romney’s Bernanke-Busting ClipWith Romney’s comments (that QE2 didn’t work, that he doesn’t back QE3, and that Bernanke should go) somewhat cornering the Fed-Head’s decision-making, CNBC’s Rick Santelli’s comments this morning are even more prescient. The Chicago truth-sayer vociferously noted the increasingly politicized Federal Reserve actions, highlighting Schumer’s recent ‘demand’ that Bernanke do his job. With Bullard this morning noting that muddle-through was not enough to justify the size of QE3 the market seems to be anticipating, it appears any actions by the Fed in the near-term can only be seen as political. The only way to justify any sizable NEW QE is then surely for the market to crash – and with Spain’s no-bailout-soon, and Merkel back in the headlines, who knows what’s possible. One thing is certain: under Romney the country will need a Fed Chairman. And if it is not Bernanke, despite Glenn Hubbard’s promises yesterday, one very likely name will be Hubbard’s close friend and co-author: Goldman’s Bill Dudley, who now runs the NY Fed. One wonders which choice will be worse for the country (if not for gold longs) – the Chairsatan or Bill Dudley? Of course, look for Obama to retaliate and promise to para-drop dolla dolla billz if elected. Critically, the wizened ex-Gold trader Santelli notes the precious metal knows this and is acting as a barometer of anxiety in this stand-off.
Read More @ Zero Hedge
from Gold Money:
Hopes for a further crisis response by the European Central Bank (ECB)
cheered the markets yesterday, with a declining dollar giving support
to rallies in commodities and precious metals prices. Though discounted
and criticised by the German Bundesbank, the market continues to be
optimistic that the ECB will soon act to cap peripheral bond yields.
These hopes might in part be attributed to the growing dissent between
the Bundesbank and the ECB, as it is looking increasingly likely that
the Bundesbank would be left standing when push comes to shove. A clear
hint could be seen in the publically voiced support for the ECB’s bond
purchases by the German member of the ECB board Asmussen, while it is
well known that the head of the Bundesbank Weidmann has been strictly
opposed towards any such programmes.
Bond purchases by central banks are of course an extension of the bank’s balance sheet, which devalues the currency by electronically creating new currency units in exchange for those bonds. According to the quantity theory of money this would lead to a declining value of the euro. However the market has already priced in the possibility of a eurozone break-up. Therefore any decisive actions by the ECB aimed at backing the cohesion of the monetary union will lower this default risk. With this in mind it is not surprising to see the euro putting on a nice rally yesterday, gaining about 1% against the dollar and closing at $1.2473. Subsequently the US dollar index (USDX) came under pressure and declined by 0.67% to 81.91.
Read More @ GoldMoney.com
Hopes for a further crisis response by the European Central Bank (ECB)
cheered the markets yesterday, with a declining dollar giving support
to rallies in commodities and precious metals prices. Though discounted
and criticised by the German Bundesbank, the market continues to be
optimistic that the ECB will soon act to cap peripheral bond yields.
These hopes might in part be attributed to the growing dissent between
the Bundesbank and the ECB, as it is looking increasingly likely that
the Bundesbank would be left standing when push comes to shove. A clear
hint could be seen in the publically voiced support for the ECB’s bond
purchases by the German member of the ECB board Asmussen, while it is
well known that the head of the Bundesbank Weidmann has been strictly
opposed towards any such programmes.Bond purchases by central banks are of course an extension of the bank’s balance sheet, which devalues the currency by electronically creating new currency units in exchange for those bonds. According to the quantity theory of money this would lead to a declining value of the euro. However the market has already priced in the possibility of a eurozone break-up. Therefore any decisive actions by the ECB aimed at backing the cohesion of the monetary union will lower this default risk. With this in mind it is not surprising to see the euro putting on a nice rally yesterday, gaining about 1% against the dollar and closing at $1.2473. Subsequently the US dollar index (USDX) came under pressure and declined by 0.67% to 81.91.
Read More @ GoldMoney.com
from, Bullion Street:
Gold advanced above $1662 an ounce in Asian trade Thursday on expectations of yet another quantitative easing from the US Fed.
Gold for immediate delivery was seen trading at $1661.91 an ounce at 12.00 noon Singapore time after hitting as high as $1662.01 an ounce in early trade
U.S. Gold futures contract for December delivery was at $1,664.63an ounce on the comex division of nymex.
Analysts said US Fed is likely to deliver another round of monetary stimulus unless the economy improves considerably, minutes from the central bank’s latest meeting suggested.
Read More @ BullionStreet.com
Gold advanced above $1662 an ounce in Asian trade Thursday on expectations of yet another quantitative easing from the US Fed.Gold for immediate delivery was seen trading at $1661.91 an ounce at 12.00 noon Singapore time after hitting as high as $1662.01 an ounce in early trade
U.S. Gold futures contract for December delivery was at $1,664.63an ounce on the comex division of nymex.
Analysts said US Fed is likely to deliver another round of monetary stimulus unless the economy improves considerably, minutes from the central bank’s latest meeting suggested.
Read More @ BullionStreet.com
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