Prepare for What Is Coming: “There is a Very Present Danger that is Facing Every American”
Elements within the government of the United States and the cabals that have been engineering this move towards global governance are keenly aware that the system as it exists today is under extreme strain, and the day of reckoning is coming.Continue Reading →
.from The Telegraph:
Mr Noyer, governor of the Bank of France, said the ECB’s 23-member
governing council strongly backed last week’s decision to intervene in
markets, glossing over the dissenting voice of powerful Bundesbank
Governor Jens Weidmann, which disappointed investors.“Don’t have any doubt about the determination of the governing council and its capacity to act within the terms of its mandate,” Noyer told Le Point magazine in an interview.
“Our operations will be of sufficient size to have a strong impact on the markets. We should be ready to intervene very soon, prioritising short-term debt markets,” he added.
ECB President Mario Draghi had indicated last week that the bank would not be ready to enter the market before September and only if governments activated the eurozone’s bail-out funds to join the ECB in bond buying.
Noyer ruled out any action by the ECB on the primary debt market – which would be akin to monetary financing of governments’ deficits – but said an intervention in the secondary market was “perfectly possible”.
Read More @ Telegraph.co.uk
Your Complete Guide To The Coming Fiscal Cliff
All
you need to know about the fiscal cliff which will savage the US
economy in under 5 months, unless Congress finds a way to compromise at a
time when animosity and polarization in congress is the worst it has ever been in history.Forget The Fiscal Cliff, Here Comes The Corporate Bond Maturity Wall
While
ZIRP will apparently be with us for the next millennium - or instantly
not - the dominant flow from equity funds to bond funds (whether
driven by risk-aversion or demographics - or fundamental deflationist
views) remains the key technical for both issuance and pricing/demand.
Of course, for now, it seems that nothing can break this virtuous
circle of reinvesting coupons and principal but as retirees de-boom and
spend that income drainage will continue and the next few years show a rather dramatic wall of corporate bond maturities that will need to be refinanced (or paid down).
Is it any wonder that corporations are keeping their cash-piles high
and not just hose-piping it out to shareholders or M&A?Europe to experience economic contraction in 2012 and 2013
A new report issued by the European Central Bank forecasts a downward trend in growth and similar inflation.More Than 100 Million Americans Are On Welfare
As
a result of the August 2008 Bank Participation Report and subsequent
CFTC correspondence to US lawmakers, I also learned at that time that
JPMorgan was the big silver short, as I speculated on in this article. http://www.investmentrarities.com/ted_butler_comentary/09-02-08.html This is when and where the precious metals world came to learn that the big silver short was JPMorgan …
by Ted Butler, Silver Doctors:
There has been an explosion of interest and commentary these past few
days as a result of a front page story in Monday’s edition of the
influential Financial Times (of London). The story stated that the CFTC
was set to drop its four year investigation into alleged silver price
manipulation due to insufficient evidence to bring charges, according to
three unnamed sources. I went to sleep Sunday evening when the story
first appeared prepared to wake up to similar and confirming stories in
other publications. Instead, there were no other stories confirming the
case was set to be dropped; only strong statements that the FT was story
was “premature” and “inaccurate in many respects” by a named source, Commissioner Bart Chilton of the agency.The CFTC’s silver investigation is a hot button issue and the FT story, as well as Commissioner Chilton’s response to it, set off an outpouring of emotion and conjecture in the precious metals world. And for good reason, as this is an extremely important issue. There can be no greater concern than whether a market is manipulated in price.
The issue of a silver manipulation is also a divisive matter, even within the CFTC itself; otherwise there likely wouldn’t have been leaks that the investigation was over and the immediate response of not so fast. As is usually the case with extremely divisive issues (like politics and elections), emotions take hold and the real issues can get distorted.
Read More @ Silver Doctors
US Army Tactical Manuals Describe How to Control Domestic Insurrection
In times of domestic insurrection, the Executive Branch can enforce armed support to state governments and local police departments with or without their approval because the continuity of government is the endgame and must be preserved. In this event, domestic intelligence gathering become paramount to maintain a clear chain of military command to be able to stop the home-grown insurgency.California's Budget Woes Spark 'Fiscal Emergency'
Eric De Groot at Eric De Groot - 55 minutes ago
Money is always hoarded during times of uncertainty and crisis. This
reduced commerce and tax collection for local, state, and federal
governments. Private money, scrip, tokens, fiat, precious metals inevitably
fill the void to facilitate daily life. For example, the Great Depression
saw issuance of local scrip and Civil War tokens when money disappeared
from circulation. Municipalities from...
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Euro Gold Hinting at Upside Breakout
Trader Dan at Trader Dan's Market Views - 1 hour ago
US centered investors/traders more often than not develop a US
Dollar-centric view of the price of commodities, gold included. As such we
oftentimes can miss how a large portion of the global investment community
can be viewing the price action of an individual asset.
It is no secret that the current epicenter for global economic troubles is
Europe. Sovereign debt woes and squabbles among the various members of the
EU have led to a sort of impasse which is sapping confidence from investors
in that corner of the world.
The result has been a significant amount of gold buying as a saf... more »
Peak Complacency Is Back
Three gentle 'over-complacent' reminders from the world of implied distributions of returns - i.e. the equity options market. Implied vol is its lowest relative to realized vol in six months
- implying market participants are banking on a relatively well behaved
market going forward relative to the last few weeks. The short-term volatility term structure is its steepest in seven months
- implying that investors are as confident in short-term market
calmness (and positive bias) as they have been alsmot all year. The
implied skewness of options prices is at almost its lowest in five years
- implying downside risk in distributions is near record high levels of complacency. Other than that, fill your boots.Retail Participation In The Stock Market Is So Horrendous That...
...Groupon is now offering a 97% off "four day online stock-trading course."
While not nearly as big as the discount we have all grown to expect
from Whitney Tilson's Value Investing Congress, this offer demonstrates
just how much interest the retail investing public has regarding
stocks. And why any administration, whether the current or the future
one, that believes it can delude the general public into ignoring the
broad economy and focusing only on the Russell 2000 as proof of "how
good it is" will have its work cut out.A Common-Sense View Of The Stock Market
Active traders and professional money managers already know how the U.S. stock market actually works, but Joe and Jane Citizen, whose pensions generally depend on the market in some way, typically do not. This entry is for them. Today's financial markets are endlessly complex, and this complexity implicitly serves to mask the true nature of market operations. Most of this complexity can be boiled away with zero loss of understanding. Indeed, manipulating this complexity is what earns the big bucks on Wall Street, while boiling it away earns the big bucks for commentators and analysts. Thus complexity serves the financial industry extremely well.- The first and most important thing to understand about the U.S. stock market is how few humans are actually involved in the decision to buy or sell large blocks of shares.
- The second important thing to know about the stock market is that central banks and governments intervene as buyers to trigger rallies and put floors under declines.
- The third thing to know about U.S. stock market is that their operations are opaque, invisible, and hidden from the citizenry and non-Elite human traders.
- The fourth and last thing to know about U.S. stock markets is that this skimming and intervention have left the markets extremely vulnerable to collapse.
from James Smith, Activist Post
Just hours after the PPRN News published the story of the request by the Department of Homeland Security / Transportation Safety Administration, Jacob Goodwin, Editor-in-Chief of Government Security News released an article explaining how innocuous and safe this request is.
The invitation to bid is a 100% small business set-aside opportunity, and prospective vendors have until August 13 to submit their bids. Delivery of the explosives, which must be packed in bags, is required within 15 days, says the TSA notice.
The RDX and ammonium nitrate will be sent to the William J. Hughes Technical Center in Atlantic City, NJ.
‘TSA’s National Explosives Detection Canine Team Program prepares dogs and handlers to serve on the front lines of America’s War on Terror,’ says the agency’s Website. ‘These very effective, mobile teams can quickly locate and identify dangerous materials that may present a threat to transportation systems. Just as important, they can quickly rule out the presence of dangerous materials in unattended packages, structures or vehicles, allowing the free and efficient flow of commerce.’Read More @ Activist Post
by Gary North, Lew Rockwell:
Recently, the leftist London Guardian posted an article against the
nineteenth-century gold coin standard. The author, who seems recently to
have begun shaving, has provided a highly useful summary of the
Keynesian case against the gold coin standard. His article is a fine
mixture of familiar old canards and creative new errors. His name is
Duncan Weldon.
Mr. Weldon has not written a book, so it is difficult for me to know exactly what his monetary theory is. He was the unknown Keynesian in the 2011 BBC debate between two teams of economists at the London School of Economics: The Keynes vs. Hayek debate. I assume that Robert Skidelsky, his partner, thought he was an up-and-coming economist. Skidelsky is the author of a multi-volume biography of Keynes.
I think it would be a useful exercise to go through Mr. Weldon’s case against gold. Clearly, he expects people to take it seriously. While I cannot bring myself to do this, having actually read it, I do think some editor at The Guardian took it seriously, even though he also read it.
Read More @ LewRockwell.com
from RTAmerica:
Recently, the leftist London Guardian posted an article against the
nineteenth-century gold coin standard. The author, who seems recently to
have begun shaving, has provided a highly useful summary of the
Keynesian case against the gold coin standard. His article is a fine
mixture of familiar old canards and creative new errors. His name is
Duncan Weldon.Mr. Weldon has not written a book, so it is difficult for me to know exactly what his monetary theory is. He was the unknown Keynesian in the 2011 BBC debate between two teams of economists at the London School of Economics: The Keynes vs. Hayek debate. I assume that Robert Skidelsky, his partner, thought he was an up-and-coming economist. Skidelsky is the author of a multi-volume biography of Keynes.
I think it would be a useful exercise to go through Mr. Weldon’s case against gold. Clearly, he expects people to take it seriously. While I cannot bring myself to do this, having actually read it, I do think some editor at The Guardian took it seriously, even though he also read it.
Read More @ LewRockwell.com
from RTAmerica:
by Andrew Hoffman, MilesFranklin.com:
With each passing day we are apprised of new problems financial and
proposed old solutions. The “old solutions” worked…until they didn’t
which was circa 2007. This was the year that the “virtuous circle”
stopped working because the world had reached the debt saturation level
where few other than governments had the will or ability to borrow more
while the banking sector either did not have the ability or the will to
lend, the classic debt stall followed by contraction. The “virtuous
circle” worked because each time the economy slowed down or asset prices
stalled or contracted, adding $1 of debt created at one point better
than $5 of economic activity. Fast forward to present day and $1 of new
debt is adding less than .75 cents. People sense this and feel it
which is why “velocity” is crashing along with volumes in the global
equity markets.
To look at other “circles” that are spiraling downward we can look to Europe. The heavy debt burdens (real estate, personal, corporate, state and sovereign) have put in place a system where the collateral has been impaired (as to equity remaining) which in turn punctured bank balance sheets. These injured banks have gotten bailouts from sovereign governments which increased the debt burdens on the sovereigns which in turn has lowered their credit ratings, increased their risks and thus lowered what investors will pay for the bonds. One big happy circle! Central banks loan capital to the banks, the banks buy the sovereign debt, the sovereign debt goes down in value and the banks need more bailouts again as their balance sheets expand in assets and contract in equity. …The Central banks loan more capital…and around and around she goes!
Read more @ MilesFranklin.com
by Greg Hunter, USAWatchdog:
The Financial Survival Network (FSN) invited me on to talk about the state of journalism in the mainstream media (MSM). People are largely in the dark about what is really going on in the world today and are woefully unprepared for a coming calamity. It’s all because of the terrible job the MSM is doing informing the public! Kerry Lutz is the founder of FSN. Lutz is a lawyer and investor who turned journalist just a few years ago. His site has only been operational a year and a half, but already gets 500,000 downloads per month. We talked about many subjects from the possibility of an economic collapse to probable war in the Middle East. I’m picking up the interview Mr. Lutz did with me in progress. We are discussing Arizona Sheriff Joe Arpaio’s allegation that President Obama’s birth certificate is a phony and questioning why the MSM continues to ignore the story. Enjoy.
With each passing day we are apprised of new problems financial and
proposed old solutions. The “old solutions” worked…until they didn’t
which was circa 2007. This was the year that the “virtuous circle”
stopped working because the world had reached the debt saturation level
where few other than governments had the will or ability to borrow more
while the banking sector either did not have the ability or the will to
lend, the classic debt stall followed by contraction. The “virtuous
circle” worked because each time the economy slowed down or asset prices
stalled or contracted, adding $1 of debt created at one point better
than $5 of economic activity. Fast forward to present day and $1 of new
debt is adding less than .75 cents. People sense this and feel it
which is why “velocity” is crashing along with volumes in the global
equity markets.To look at other “circles” that are spiraling downward we can look to Europe. The heavy debt burdens (real estate, personal, corporate, state and sovereign) have put in place a system where the collateral has been impaired (as to equity remaining) which in turn punctured bank balance sheets. These injured banks have gotten bailouts from sovereign governments which increased the debt burdens on the sovereigns which in turn has lowered their credit ratings, increased their risks and thus lowered what investors will pay for the bonds. One big happy circle! Central banks loan capital to the banks, the banks buy the sovereign debt, the sovereign debt goes down in value and the banks need more bailouts again as their balance sheets expand in assets and contract in equity. …The Central banks loan more capital…and around and around she goes!
Read more @ MilesFranklin.com
by Greg Hunter, USAWatchdog:
The Financial Survival Network (FSN) invited me on to talk about the state of journalism in the mainstream media (MSM). People are largely in the dark about what is really going on in the world today and are woefully unprepared for a coming calamity. It’s all because of the terrible job the MSM is doing informing the public! Kerry Lutz is the founder of FSN. Lutz is a lawyer and investor who turned journalist just a few years ago. His site has only been operational a year and a half, but already gets 500,000 downloads per month. We talked about many subjects from the possibility of an economic collapse to probable war in the Middle East. I’m picking up the interview Mr. Lutz did with me in progress. We are discussing Arizona Sheriff Joe Arpaio’s allegation that President Obama’s birth certificate is a phony and questioning why the MSM continues to ignore the story. Enjoy.
from KingWorldNews:
Today Peter Schiff spoke with King World News about what he described as “The perfect storm.” Schiff also discussed gold, the Fed, mining shares, and much more. But first, here is what he had to say about mainstream fund managers and gold: “I think that what’s going on is that most mainstream investors, who invest other people’s money, see gold as a bubble and are waiting for it to burst. People think the price of gold is going to go down. They think the Fed is done easing.
Everybody is waiting for the other shoe to drop for the price of gold. If you look at the price of gold stocks, p/e multiples, the assumption must be that earnings are going to fall sharply. That’s based on the idea that gold prices are going to go down.
The street is wrong if that’s what they are betting on….”
Peter Schiff continues @ KingWorldNews.com
Today Peter Schiff spoke with King World News about what he described as “The perfect storm.” Schiff also discussed gold, the Fed, mining shares, and much more. But first, here is what he had to say about mainstream fund managers and gold: “I think that what’s going on is that most mainstream investors, who invest other people’s money, see gold as a bubble and are waiting for it to burst. People think the price of gold is going to go down. They think the Fed is done easing.
Everybody is waiting for the other shoe to drop for the price of gold. If you look at the price of gold stocks, p/e multiples, the assumption must be that earnings are going to fall sharply. That’s based on the idea that gold prices are going to go down.
The street is wrong if that’s what they are betting on….”
Peter Schiff continues @ KingWorldNews.com
by JT Long, MineWeb.com
Tocqueville’s
John Hathaway says as more investors realize that capital safety is the
real reason to own gold, safe storage is more important than ever. Gold
Report interview.
The Gold Report: John, you predicted $2,000/ounce (oz) gold prices. After rising to $1,900/oz last fall, the price has hovered at $1,500-1,600/oz much of 2012. What will cause it to take the next leg up?
John Hathaway: There are several factors that I think will drive gold higher. On the monetary side, central bankers and treasury secretaries are bobbing and weaving, making it up as they go. They lack a comprehensive solution to the sovereign debt crisis in Europe, to the forces that are pulling the Eurozone apart or to the stagnation in the world’s key economies. Ultimately, all of this will further debase the value of paper currency.
More quantitative easing may also be on the table, and I have read a good deal about taking nominal rates to less than zero. That would mean people who have money in savings accounts would be charged a fee for keeping the money, as opposed to earning interest. It would not surprise me to see that evolve as a way to get all of these free reserves in the banking system into the economy.
Read More @ MineWeb.com
Tocqueville’s
John Hathaway says as more investors realize that capital safety is the
real reason to own gold, safe storage is more important than ever. Gold
Report interview.The Gold Report: John, you predicted $2,000/ounce (oz) gold prices. After rising to $1,900/oz last fall, the price has hovered at $1,500-1,600/oz much of 2012. What will cause it to take the next leg up?
John Hathaway: There are several factors that I think will drive gold higher. On the monetary side, central bankers and treasury secretaries are bobbing and weaving, making it up as they go. They lack a comprehensive solution to the sovereign debt crisis in Europe, to the forces that are pulling the Eurozone apart or to the stagnation in the world’s key economies. Ultimately, all of this will further debase the value of paper currency.
More quantitative easing may also be on the table, and I have read a good deal about taking nominal rates to less than zero. That would mean people who have money in savings accounts would be charged a fee for keeping the money, as opposed to earning interest. It would not surprise me to see that evolve as a way to get all of these free reserves in the banking system into the economy.
Read More @ MineWeb.com
by Richard (Rick) Mills, Ahead of the Herd:
As a general rule, the most successful man in life is the man who has the best information.
The massive growth of global prosperity over the last five centuries has been driven by easy and cheap access to critical materials: Food, Fibre, Energy. Minerals
However since October 2001 the CRB BLS Spot Index has reached record levels …
Because central banks can increase the supply of money virtually at will, and do so, the value of all existing money decreases. The amount of goods and services remains the same, but now the amount of money chasing them has increased, this increased competition – more money (inflation) for the same amount of goods and services – causes prices to rise.
Read More @ AheadOfTheHerd.com
As a general rule, the most successful man in life is the man who has the best information.The massive growth of global prosperity over the last five centuries has been driven by easy and cheap access to critical materials: Food, Fibre, Energy. Minerals
However since October 2001 the CRB BLS Spot Index has reached record levels …
Because central banks can increase the supply of money virtually at will, and do so, the value of all existing money decreases. The amount of goods and services remains the same, but now the amount of money chasing them has increased, this increased competition – more money (inflation) for the same amount of goods and services – causes prices to rise.
Read More @ AheadOfTheHerd.com
from BenSwannRealityCheck:
Ben Swann Reality Check takes a look at how the United States government created Al Qaeda and yet in some countries is still fighting them while in others is supporting them.
Ben Swann Reality Check takes a look at how the United States government created Al Qaeda and yet in some countries is still fighting them while in others is supporting them.
by Zen Gardner, ZenGardner.com
The daily headlines are getting more mind-boggling by the day. One
thing they all have in common, besides being a complete affront to the
senses and spirit;
They’re all f**ing backwards.
They’re complete reversals of not only previously established facts, but what your heart and even common sense are telling you. These ongoing, in your face, assumptive and arrogant lies against humanity are almost beyond comprehension.
What is most appalling is the brash magnitude of the barrage. We’re being played for idiots.
Know what’s more freaky? They know if they repeat it often enough and don’t back down they’ll succeed. The masses will open their mouths and swallow it.
The Lies of Omission Are Some of the Worst
I feel like I’m running around a trauma ward sometimes telling the patients “Don’t go to sleep! Don’t go to sleep!” like doctors tell shocked trauma victims so they can know their full symptoms and keep some sort of conscious control over them while they assess their situation.
Only in this case it’s a media drug overdose that is leading to mental and spiritual paralysis.
Read More @ ZenGardner.com
The daily headlines are getting more mind-boggling by the day. One
thing they all have in common, besides being a complete affront to the
senses and spirit;They’re all f**ing backwards.
They’re complete reversals of not only previously established facts, but what your heart and even common sense are telling you. These ongoing, in your face, assumptive and arrogant lies against humanity are almost beyond comprehension.
What is most appalling is the brash magnitude of the barrage. We’re being played for idiots.
Know what’s more freaky? They know if they repeat it often enough and don’t back down they’ll succeed. The masses will open their mouths and swallow it.
The Lies of Omission Are Some of the Worst
I feel like I’m running around a trauma ward sometimes telling the patients “Don’t go to sleep! Don’t go to sleep!” like doctors tell shocked trauma victims so they can know their full symptoms and keep some sort of conscious control over them while they assess their situation.
Only in this case it’s a media drug overdose that is leading to mental and spiritual paralysis.
Read More @ ZenGardner.com
from gpc1981, Gains Pains & Capital:
The markets are continuing their short squeeze, Euro-phoria induced lunacy. As a quick reminder the S&P 500 is up nearly 5% while many European indexes have rallied double digits (Spain’s Ibex is up an unbelievable 17%!)
In light of this, we need to take a look at the facts, because much of this feels too much like 2008 (at that time the S&P 500 rallied 7%, 11%, even 18% based on various “interventions” all of which turned out to be duds).
Regardless of what Draghi said, what exactly can the ECB do?
Technically, the ECB can buy sovereign bonds on the market.
However, it hasn’t done this in 17 weeks. The reason? Germany wouldn’t stand for it. Draghi seems to believe he can start doing this again now.
Read More @ GainsPainsCapital.com
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The markets are continuing their short squeeze, Euro-phoria induced lunacy. As a quick reminder the S&P 500 is up nearly 5% while many European indexes have rallied double digits (Spain’s Ibex is up an unbelievable 17%!)
In light of this, we need to take a look at the facts, because much of this feels too much like 2008 (at that time the S&P 500 rallied 7%, 11%, even 18% based on various “interventions” all of which turned out to be duds).
Regardless of what Draghi said, what exactly can the ECB do?
Technically, the ECB can buy sovereign bonds on the market.
However, it hasn’t done this in 17 weeks. The reason? Germany wouldn’t stand for it. Draghi seems to believe he can start doing this again now.
Read More @ GainsPainsCapital.com
from Gold Core:
Gold edged up on Thursday after China’s CPI slowed to a 30 month low of
1.8% in July, factory output plummeted to a 3 year low and these clues
signal more QE from China in the near future.
China replaced India as the world’s top gold consumer at the end of 2011. China’s gold inflows from Hong Kong increased 6 times for the first 2 quarters of 2012.
India’s gold demand has been slow even during the festival season as rural buyers, who account for 60% of the gold demand from India, are holding their cash instead of buying the yellow metal. Since a lack of monsoon rains could damage their crops they are waiting on the sidelines.
The waiting game is still being played as investors are waiting for the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming at the end of August. Gold trading has been sluggish as many traders are waiting for more signals from central banks, many are off on holidays or enjoying watching the Olympics.
Gold futures volumes hit the 3rd day below 100,000 contracts, its lowest streak since December 2010. Open interest in gold futures hit its lowest level (388,254 contracts) since September 2009. When trading volume is very low, individual trades can have a large impact on determining gold prices as there are fewer players to accommodate the institutional order size.
South African mining output rose by 4.2% in June, the most in 13 months, and yet South Africa’s gold output fell by another 4%.
Read More @ GoldCore.com
Euro founder admits some nations may be forced to leave … One of the founding fathers of the euro admits that some states may be forced to abandon the single currency, but insists Germany would be better off staying in. Otmar Issing, a former European Central Bank chief economist, warned that the eurozone could be heading towards fracture in a book called How we save the euro and strengthen Europe published this week. “Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen,” said Mr Issing in the book, which is written as a conversation between an economist and a journalist. – UK Telegraph
Dominant Social Theme: Like Celine Dion’s heart, the EU and euro will go on …
Free-Market Analysis: Are the Eurocrats finally starting to crack? Otmar Issing, a notable pro-EU figure, has just released a book that promotes the possibility of a euro bust-up.
This is a remarkable turn of events, in our view. It signals we may be correct about what we call the Internet Reformation and the impact it is having on power elite plans to build world government.
Read More @ TheDailyBell.com
Gold edged up on Thursday after China’s CPI slowed to a 30 month low of
1.8% in July, factory output plummeted to a 3 year low and these clues
signal more QE from China in the near future.China replaced India as the world’s top gold consumer at the end of 2011. China’s gold inflows from Hong Kong increased 6 times for the first 2 quarters of 2012.
India’s gold demand has been slow even during the festival season as rural buyers, who account for 60% of the gold demand from India, are holding their cash instead of buying the yellow metal. Since a lack of monsoon rains could damage their crops they are waiting on the sidelines.
The waiting game is still being played as investors are waiting for the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming at the end of August. Gold trading has been sluggish as many traders are waiting for more signals from central banks, many are off on holidays or enjoying watching the Olympics.
Gold futures volumes hit the 3rd day below 100,000 contracts, its lowest streak since December 2010. Open interest in gold futures hit its lowest level (388,254 contracts) since September 2009. When trading volume is very low, individual trades can have a large impact on determining gold prices as there are fewer players to accommodate the institutional order size.
South African mining output rose by 4.2% in June, the most in 13 months, and yet South Africa’s gold output fell by another 4%.
Read More @ GoldCore.com
by Staff Report, The Daily Bell:
Euro founder admits some nations may be forced to leave … One of the founding fathers of the euro admits that some states may be forced to abandon the single currency, but insists Germany would be better off staying in. Otmar Issing, a former European Central Bank chief economist, warned that the eurozone could be heading towards fracture in a book called How we save the euro and strengthen Europe published this week. “Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen,” said Mr Issing in the book, which is written as a conversation between an economist and a journalist. – UK Telegraph
Dominant Social Theme: Like Celine Dion’s heart, the EU and euro will go on …
Free-Market Analysis: Are the Eurocrats finally starting to crack? Otmar Issing, a notable pro-EU figure, has just released a book that promotes the possibility of a euro bust-up.
This is a remarkable turn of events, in our view. It signals we may be correct about what we call the Internet Reformation and the impact it is having on power elite plans to build world government.
Read More @ TheDailyBell.com
from David McWilliams:
In the past few days, financial markets have become obsessed with
whether or not the central banks of the world will cut interest rates,
and print more and more money. This obsession was obviously heightened
by the comments of ECB president Mario Draghi last week, when he said he
would do “anything” necessary to save the euro.
“Anything” was taken to mean that the ECB would buy the bonds of Spain, and possibly Italy, directly. In short, it would do what the Germans feared most: monetise sovereign debt simply by printing money to buy the IOUs of peripheral governments. As a result, traders thought that they had been given a type of insurance policy because they knew the ECB would buy bonds of countries like Spain and Italy. This pattern is not new.
Over the past year, every time there is a word from a central banker about cutting interest rates, the financial markets rally. This is what has come to be known in the market as the ‘risk on’ trade. In other words, the trader can take risky positions if the central bank is behind him. The risk is ‘on’.
If the central banks don’t deliver, the financial markets sell off. This is known as the ‘risk off’ trade.
We are getting to a stage where the financial markets are now addicted to the central banks’ infusion of money. But we are also in the position that the central bankers are looking over their shoulders at the reaction of the markets all the time. If the markets sell off, the expectation is that the central bankers will react and the expectations are heightened which, in turn, has the effect of backing the central bankers into a corner, as Draghi saw last week.
Read More @ DavidMcWilliams.ie
In the past few days, financial markets have become obsessed with
whether or not the central banks of the world will cut interest rates,
and print more and more money. This obsession was obviously heightened
by the comments of ECB president Mario Draghi last week, when he said he
would do “anything” necessary to save the euro.“Anything” was taken to mean that the ECB would buy the bonds of Spain, and possibly Italy, directly. In short, it would do what the Germans feared most: monetise sovereign debt simply by printing money to buy the IOUs of peripheral governments. As a result, traders thought that they had been given a type of insurance policy because they knew the ECB would buy bonds of countries like Spain and Italy. This pattern is not new.
Over the past year, every time there is a word from a central banker about cutting interest rates, the financial markets rally. This is what has come to be known in the market as the ‘risk on’ trade. In other words, the trader can take risky positions if the central bank is behind him. The risk is ‘on’.
If the central banks don’t deliver, the financial markets sell off. This is known as the ‘risk off’ trade.
We are getting to a stage where the financial markets are now addicted to the central banks’ infusion of money. But we are also in the position that the central bankers are looking over their shoulders at the reaction of the markets all the time. If the markets sell off, the expectation is that the central bankers will react and the expectations are heightened which, in turn, has the effect of backing the central bankers into a corner, as Draghi saw last week.
Read More @ DavidMcWilliams.ie
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