By now everyone has heard the infamous Mitt Romney speech discussing the "47%" if primarily in the context of how this impacts his political chances, and how it is possible that a president "of the people" can really be a president "of the 53%." Alas, there has been very little discussion of the actual underlying facts behind this statement, which ironically underestimates the sad reality of America's transition to a welfare state. Recall Art Cashin's math from a month ago that when one adds the 107 million Americans already receiving some form of means-tested government welfare, to the 46 million seniors collecting Medicare and 22 million government employees at the federal, state and local level, and "suddenly, over 165 million people, a clear majority of the 308 million Americans counted by the U.S. Census Bureau in 2010, are at least partially dependents of the state." Yes, Romney demonstrated potentially terminal lack of tact and contextual comprehension with his statement, and most certainly did alienate a substantial chunk of voters (most of whom would not have voted for him in the first place) but the math is there. The same math that inevitably fails when one attempts to reconcile how the $100+ trillion in underfunded US welfare liabilities will someday be funded. Yet the above is for political pundits to debate, if not resolve. Because there is no resolution. What we did want to bring attention to, is something else that Mitt Romney said, which has received no prominence in the mainstream media from either side. The import of the Romney statement is critical as it reveals just what the endgame may well looks like.
China's Delinquent Loans Rise 333% Since End 2011
Presented with little comment since our jaws just hit our chest - these stunning headlines from a PWC report:
*CHINA TOP 10 LISTED BANKS' OVERDUE LOANS REACH 489B YUAN END-1H
*CHINA OVERDUE LOANS RISE FROM 112.9B YUAN END-2011: PWC
*INCREASE IN CHINA OVERDUE LOANS SHOWS NPLS MAY RISE, PWC SAYS
*PWC CITES BANKS' REPORTS FOR OVERDUE LOAN DATA
Audi Says Murderous Cravings Of Some Chinese Employees Do Not Necessarily Reflect Company Views
Just two days ago we tweeted
the rather stunning 'slogan' that a happy-smiley joy-joy bunch of
Audi-China staff 'celebrated' at their dealership. The somewhat subtle
translation of the banner: "We
will kill every single Japanese person, even if it means deaths for
our own; even poverty will not deter us from reclaiming the Diaoyu
Islands" has now been addressed by Audi management:
- *AUDI CHINA JV SAYS ANTI-JAPAN BANNER INCIDENT AN ISOLATED CASE
- *AUDI CHINA JV ASKED DEALERSHIP TO REMOVE BANNER, LU SAYS'
- *AUDI CHINA JV URGES `REASONABLE' EXPRESSION OF PATRIOTISM
China Flash PMI Prints 'Not Bad Enough' But Still In Contraction For 11 Months
UPDATE: *SHANGHAI COMPOSITE INDEX FALLS 1%, APPROACHES 2009 LOW
September's HSBC China Flash PMI just printed at 47.8, a slight beat of the final August print at 47.6 but still below 50 - for the eleventh month in a row. With only one month of expansion according to this data since June of last year, it seems more reverse repos are ahead (since as we already discussed in detail here - they are caught between a rock and a hard place on easing as the economy 'supposedly' transitions not-so-softly). Market reaction to this potentially good-is-bad data print (i.e. not cold enough to warrant massive China stimulus) is USD strength, EUR weakness, and modest S&P futures selling pressure.
Retail Investors "Just Say No" To Bernanke's Artificial Wealth Effect
And so the great standoff continues. On one hand, the Chairman will literally do anything and everything to get the retail investor to break their 4 year boycott of stocks, and come rushing back to the artificial and fabricated safety of an endlessly rising market: after all he has gone so far as to implicitly guarantee that there will never be a -1% day in the market ever again: all natural market forces will be crushed in the pursuit of the great asset bubble-based "wealth effect." On the other hand, the retail investor, older, wiser, and most importantly poorer, observing inexplicable and unpunished daily flash crashes across the numerous 'highly frequently traded' asset classes, still recovering from a market in which everyone told him to buy only to see a 50% loss in months, with ever less disposable income, is no longer interested in said "wealth effect" proposition, or any other proposition premised on the artificial manipulation of the political construct once upon a time known as the market, no matter how many personal guarantees of perpetual QEasing the Chairsatan will hand out. The culmination: the week ended September 12 domestic equity mutual funds saw the 8th consecutive outflow from stocks, amounting to $2.8 billion, and 32nd outflow of 37 weekly readings in 2012. The brings the total cumulative outflow year to date to $92 billion. The same period in 2011 had a total outflow of $79 billion, even though the market now is not only higher than it was in 2011, but the highest it has been since 2007.
Spanish bad loans rise to 9.7% of total loans equal to 27% of Spanish GDP/Japan joins the QE parade followed by England/Gold and silver steady/
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 5 hours ago
Good
evening Ladies and Gentlemen;
Gold closed up by 60 cents to $1769.00 Silver on the other hand was
subjected to a lot of paper selling by the bankers as it lost 12 cents
to $34.52. Gold got a boost from Japan early this morning announcing
that they were joining the illustrious QE club with a huge quantitative
easing program. It's debt is now at 1.4 quadrillion yen. The bankers
fearful of
SP 500 and NDX Futures Daily Charts - A Dreary Day in Benville
A Primer On Honesty: Are You A Better Liar Than The Chairman?
Human beings basically try to do two things at the same time; on the one hand we want to be able to look in the mirror and feel good about ourselves - ego motivation from honesty, and on the other hand we want to benefit from dishonesty. It would seem at first glance that we could only do one (honesty or dishonesty) but thanks to our 'flexible cognitive psychology' and our ability to 'rationalize our actions', we can in fact do both. Nowhere is this more clearly equivocated than in The Bernank's entirely disingenuous commentary and justification for QEternity last week. He is of course rationalizing his actions (via empirical studies or Woodford's paper), knowing full well the implications, but remaining an 'honest and wonderful' asset to society in his own mind. This outstanding clip from Dan Ariely on The (Honest) Truth About Dishonesty will provide much food for thought about whether you are more honest than The Bernank, Draghi, or Juncker and at the same time what motivates their self-effacing dishonesty.
The Experimental Economy
On the heels of last Thursday’s Fed announcement, there has been much commentary on the whys and wherefores of a new quantitative easing (the so-called QE3). Rather than re-hashing well-covered ground, I want to instead discuss the potential effects and unintended consequences of this policy and how it may impact the investment landscape going forward. Suffice it to say that the Fed had its reasons. QE3 evidences a belief in the so-called “wealth-effect” – the idea that one will spend more if he/she feels wealthier – and the Fed also believes it can contain any negative consequences. However, others would argue that it’s another shot across the bow of our foreign lenders that we are willing to engage full-out in a currency war as this policy clearly weakens the U.S. dollar. Because the Fed has embarked on a path with little historical precedent – where a central bank has signaled the intent to expand its balance sheet as much as it needs to – we are all now part of an experimental economy.
'Krugman's Kryptonite' Pedro Schwartz On Creating Money Out Of Thin Air
"A
serious inflationary disaster will only be prevented if governments
succeed in reducing their deficits and stop selling bonds" is how the infamous destroyer of Krugman,
Pedro Schwartz, describes the dangerous 'tennis match' being played
between The Fed and The ECB. In an excellent interview with GoldMoney's
James Turk, the Spanish 'Austrian' economist talks about bank
regulation, the creation of money out of thin air, and the beauty of a
trult free market system. From fictional reserve lending to the
fragility (and boom-bust cycles) of our financial system, the
mild-mannered 'Keynesian-Krusher' concludes that "there has to be a change in social mentality - so that people realize that nothing is free, and the government has to shrink."The Fate Of The Rally Now Rests In The Hands Of The US Consumer
A
funny thing happened on the way to QEternity - multiples expanded by
an aggressive 2x to reach their highest in two years as the print-gasm
hope was 'priced in' to the nominal value of the US equity indices (and
fundamentals didn't matter). During this period, which was all about
anticipation of the Fed, the real economy (that is earnings and
revenues) have been disappointing. From here, now that Ben has blown his
eternal wad, it is up to EPS and multiples - which leaves us with a
little problem. As the chart below shows, the next few quarters are the
very picture of hopes, dreams, and unicorns as Q4 EPS is somehow magically expected to stop a straight line decline in YoY profits - and soar by 10%. The driver of this miracle is the good old US Consumer - as discretionary spending now accounts for 100% of the expected EPS growth and 300% of the revenue growth for the post-election, pre-year-end extravaganza that is the lame-duck 'fiscal-cliff'-denying lead up to the holidays. As we said yesterday, either you believe in math or you believe in magic.
The crash that followed parallels what has happened more recently and may, with other lessons from U.S. history, provide pointers for the euro zone crisis.
As the property prices soared, Europe’s world was turned upside down. Thanks to grain elevators, conveyor belts and huge steamships, American farmers opening up the fertile Midwest were able to export vast quantities of wheat and then processed food.
Grain producers from Russia and central Europe simply could not compete with what came to be known as the American Commercial Invasion.
Read More @ Reuters
by The Daily Bail:
The announcement last week by the Federal OpenMarket
Committee that the central bank would initiate additional, open-ended
purchases of residential mortgage backed securities (RMBS) was more than
a little sad. Let us count the ways.
The first reason for sadness was the idea that people here in New York and elsewhere in the global financial community were actually surprised by the Fed’s move. The FOMC is fighting deflation. Credit continues to contract globally as much of the western world goes on a pure cash budget. So while I would like to see the Fed raise short term rates, the fact is that the central bank has little choice but to support the markets. But buying RMBS will neither help housing nor reverse the current deflationary spiral on which we all ride.
The second reason to be circumspect is the fact that the Fed’s leaders continue to pretend that driving down yields in the RMBS markets will have any impact on the housing sector or the economy. The two thirds of the mortgagemarket
that cannot refinance their homes will be unaffected by QE3. In fact,
the latest Fed purchases are a gift to Fannie Mae and Freddie Mac, the
TBTF banks and the hedge fund community. A fund on the floor of our
offices in New York actually started dancing around like little children
shouting “QE3” after the Bernanke press conference.
Read More @ TheDailyBail.com
The announcement last week by the Federal Open
The first reason for sadness was the idea that people here in New York and elsewhere in the global financial community were actually surprised by the Fed’s move. The FOMC is fighting deflation. Credit continues to contract globally as much of the western world goes on a pure cash budget. So while I would like to see the Fed raise short term rates, the fact is that the central bank has little choice but to support the markets. But buying RMBS will neither help housing nor reverse the current deflationary spiral on which we all ride.
The second reason to be circumspect is the fact that the Fed’s leaders continue to pretend that driving down yields in the RMBS markets will have any impact on the housing sector or the economy. The two thirds of the mortgage
Read More @ TheDailyBail.com
Gold price to rise to record heights as the latest open ended Bernanke boost continues but watch out for accompanying inflation (which could be part of the policy).
by Lawrence Williams, MineWeb.com
The gold commentators who have been at the bullish end of the investment spectrum have all, without exception, come out with positive comment on the prospects for gold market. This follows the latest U.S. Fed moves to provide for the virtually open-ended purchase of around $40 billion each month of mortgage-backed securities to help boost employment and drag the U.S. economy kicking and squealing from its seemingly recessionary path. Indeed the Fed went even further saying that it would undertake additional asset purchases and employ other policy tools until the outlook for employment improves substantially – as well as continuing with Operation Twist designed to keep interest rates at the current extremely low levels.
As New York state-based gold analyst and commentator Jeff Nichols notes in his latest commentary (see www.nicholsongold.com) : “The Fed’s newly adopted quantitative easing (QE3), unlike QE1 and QE2, is open-ended and unlimited. It will continue until there is evidence of healthy employment market conditions – which could be years away. And, it may include other policy tools that remain undefined.”
Read More @ MineWeb.com
My Dear Friends,
Before you give up on finding a solution to protecting your retirement accounts against the real risks of street name, please Google "Self Directed Custodians."
Yes, I have names, but in this world recommending anyone is high risk. It is best for you to do your homework on who you find that will do what your discount broker or banks says no to.
They usually have legal opinions on their ways and means.
Regards,
Jim
My Dear Extended Family,
Why the Cluff deal is a Game Changer in the gold industry:
The scenario that gave comfort to hedge funds is the capital intensity of building a mine. That means all money in before profit out. The hedge funds believed by raiding the price of the shares of gold explorers and junior gold producers that they could strangle the company’s ability to raise funds free of major dilution, if at all. Unable to raise funds, the company would not be able take a property to the level of Definitive Feasibility where it is financeable by various industry standard methods free of the issue of significant common shares.
Hedge funds that undertook short and distort did so feeling they had no risk because they had crippled the company’s ability to finance. We are all familiar with the dirty tricks used, selling of good news and capping activities undertaken in order to keep the company from it historical financing methods.
Looking at the Cluff deal, the key elements to this game changer is the bypassing of the normal cash royalty company and raising significant money prior to Definitive Feasibility from a company not normally a financier of the mine development without dilution of any significant degree. Hedge funds beware! Your risk free game of destroying just got extremely risky, as gold begins its move to and above $3500 and non dilution financing is available, dependent on the property, before Definitive Feasibility, not the stock price. This is not a new way to structure a deal. It is the timing, size and source that distinguish it. Maybe Google might find this an interesting source for those billions in earnings?
1. Samsung is not your usual source of finance for the development of a mine.
2. Bakino Faso is ok, but not downtown Denver or Tokyo.
3. Cluff bypassed the normal lenders and financiers for minerals such as the gold royalty companies, international banks that specialize in mineral financing and quasi government lending institutions all that rarely will commit significant money to any project prior to a completed Definitive Feasibility Study and this is the KEY for your understanding.
4. Cluff vended a Gross Royalty Option limited in time to the financing entity as a small percentage of the gross gold sold as a sweetener to the cost of money.
5. Samsung has a return well above anything possible to find elsewhere with less risk than a junk bond inherently has.
This is bad news for the hedge funds who think they have killed good projects in developing nations by their short and distort tactic. This is bad news for the major royalty companies with projects in Africa, Cluff eliminated the normal route of cash producing royalty financing. This news is good news to those juniors with serious projects as they negotiated their own short term Gross Production Royalty agreement prior to having a Definitive Feasibility Study as a form of paying an attractive interest rate.
The key elements to this game changer is the bypassing of the normal cash royalty company and raising significant money prior to Definitive Feasibility from a company not normally a financier of the mine development without dilution of any significant degree. Hedge funds beware! Your risk free game of destroying just got extremely risky as gold begins its move to and above $3500 and non dilution financing is available dependent on the property, not the stock price.
The growing use of this method at that early time in a company’s history reverses the fundamental weakness that Hedge Funds took advantage of in the capital intensive business of developing major new gold mines for exploration and development companies as well as junior producers.
The formula for your understanding:
1. Significant money.
2. Prior to Definitive Feasability.
3. For a junior producer.
4. From a cash rich company not usual to mine exploration & development financing.
5. Not in the form of the cash royalty company as a middle man.
Regards,
Jim
Jim Sinclair’s Commentary
It seems some of the things we coined here for years have been picked up in MSM. No credit from them, but I’ll assume they meant to say thanks.
"QE to Infinity" and now of all things, "Gold is Money." Actually gold is "Honest Money" and now gold mining is a safe way to get a great return of capital for cash rich non-gold companies.
Things are certainly changing.
Deutsche Bank: GOLD IS MONEY Matthew Boesler | Sep. 18, 2012, 5:53 PM
Is gold money?
It’s become a tireless debate: goldbugs seem to cling to the shiny yellow metal with a religious fervor not usually displayed by anyone toward other asset classes, and it’s been known to frustrate some who don’t share their views.
Gold often gets lumped in to investment forecasts with other "commodities" – real, consumable things like oil or food.
But Deutsche Bank analysts Daniel Brebner and Xiao Fu say gold is seriously misunderstood, and in a new report – wherein they update their gold target to $2000/oz sometime in the first half of 2013 – they explain that "gold is not really a commodity at all."
The undisputable evidence for the case that gold is money, according to the Deutsche Bank analysts:
While it is included in the commodities basket it is in fact a medium of exchange and one that is officially recognised (if not publically used as such). We see gold as an officially recognised form of money for one primary reason: it is widely held by most of the world’s larger central banks as a component of reserves.
More…
Jim Sinclair’s Commentary
If you are a bankster you are calling your Washington minions tonight.
State court ruling deals blow to U.S. bank mortgage system By Michelle Conlin
Fri Sep 14, 2012 7:04pm EDT
(Reuters) – The highest court in the state of Washington recently ruled that a company that has foreclosed on millions of mortgages nationwide can be sued for fraud, a decision that could cause a new round of trouble for the nation’s banks.
The ruling is one of the first to allow consumers to seek damages from Mortgage Electronic Registration Systems, a company set up by the nation’s major banks, if they can prove they were harmed.
Legal experts said last month’s decision from the Washington Supreme Court could become a precedent for courts in other states. The case also endorsed the view of other state courts that MERS does not have the legal authority to foreclose on a home.
"This is a body blow," said consumer law attorney Ira Rheingold. "Ultimately the MERS business model cannot work and should not work and needs to be changed."
Banks set up MERS in the 1990s to help speed the process of packaging loans into mortgage-backed bonds by easing the process of transferring mortgages from one party to another. But ever since the housing crash, MERS has been besieged by litigation from state attorneys general, local government officials and homeowners who have challenged the company’s authority to pursue foreclosure actions.
More…
Jim Sinclair’s Commentary
Things are changing big time for gold.
SOFAZ purchases 10 tons of gold Tue 18 September 2012 07:10 GMT | 3:10 Local Time
Within the framework of application of investment instruments, State Oil Fund of Azerbaijan has purchased 10 tons of gold, Executive Director of the Fund Shahmar Movsumov said.
To him, at present, that gold is kept at London banks and preparations are carried out in direction of bringing it to the country, APA reports.
‘SOFAZ has applied to the Cabinet of Ministers in connection with exemption of gold from customs duties. The gold will be kept at special storehouses of the CBA’.
Movsumov noted that preparation process of draft budget for 2013 approaches the end: ‘The draft considers implementation of big oil-gas projects. The Fund spent $200m to purchase of foreign companies’ shares, so far. By the year-end, this sum will be reached up to $600m. In the coming days the Fund will buy property in some countries’.
More…
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by Lawrence Williams, MineWeb.com
The gold commentators who have been at the bullish end of the investment spectrum have all, without exception, come out with positive comment on the prospects for gold market. This follows the latest U.S. Fed moves to provide for the virtually open-ended purchase of around $40 billion each month of mortgage-backed securities to help boost employment and drag the U.S. economy kicking and squealing from its seemingly recessionary path. Indeed the Fed went even further saying that it would undertake additional asset purchases and employ other policy tools until the outlook for employment improves substantially – as well as continuing with Operation Twist designed to keep interest rates at the current extremely low levels.
As New York state-based gold analyst and commentator Jeff Nichols notes in his latest commentary (see www.nicholsongold.com) : “The Fed’s newly adopted quantitative easing (QE3), unlike QE1 and QE2, is open-ended and unlimited. It will continue until there is evidence of healthy employment market conditions – which could be years away. And, it may include other policy tools that remain undefined.”
Read More @ MineWeb.com
from KingWorldNews:
Today legendary value investor Jean-Marie Eveillard, who oversees $60 billion, told King World News, “As long as the monetary policies continue to be mindless, the upside (for gold) continues.” He also said, “If governments try to make ownership of gold difficult or impossible, it will be much more difficult to do so than it was in the time of Roosevelt in the 1930s.”
Here is what Eveillard had to say: “Well, it seems that almost everybody is ‘all in.’ Mario Draghi is all in, Bernanke is all in, in the sense that both of them have announced ‘unlimited’ purchases of various assets. The Japanese, who believe they yen is too strong, they may be tempted to adopt a very easy monetary policy.”
Eveillard continues @ KingWorldNews.com
Today legendary value investor Jean-Marie Eveillard, who oversees $60 billion, told King World News, “As long as the monetary policies continue to be mindless, the upside (for gold) continues.” He also said, “If governments try to make ownership of gold difficult or impossible, it will be much more difficult to do so than it was in the time of Roosevelt in the 1930s.”
Here is what Eveillard had to say: “Well, it seems that almost everybody is ‘all in.’ Mario Draghi is all in, Bernanke is all in, in the sense that both of them have announced ‘unlimited’ purchases of various assets. The Japanese, who believe they yen is too strong, they may be tempted to adopt a very easy monetary policy.”
Eveillard continues @ KingWorldNews.com
by Mike Adams, Natural News:
Eating genetically modified corn (GM corn) and consuming trace levels
of Monsanto’s Roundup chemical fertilizer caused rats to develop
horrifying tumors, widespread organ damage, and premature death. That’s
the conclusion of a shocking new study that looked at the long-term effects of consuming Monsanto’s genetically modified corn.
The study has been deemed “the most thorough research ever published into the health effects of GM food crops and the herbicide Roundup on rats.” News of the horrifying findings is spreading like wildfire across the internet, with even the mainstream media seemingly in shock over the photos of rats with multiple grotesque tumors… tumors so large the rats even had difficulty breathing in some cases. GMOs may be the new thalidomide.
“Monsanto Roundup weedkiller and GM maize implicated in ‘shocking’ new cancer study” wrote The Grocery, a popular UK publication.
Read More @ NaturalNews.com
Is anyone else sick of the “buying experience”? No wonder online
buying has become so ubiquitous–the experience of shopping to acquire
stuff is a form of torture, at least to some of us. Getting there is a
nightmare (unless I can bike to the store), parking is a hassle, clerks
generally don’t know much, and the selection is often limited or skewed
to the high end. The “fun” is in leaving empty-handed. Is Anybody Else Tired of Buying and Owning Stuff? (September 7, 2012)
Read More @ OfTwoMinds.com
Eating genetically modified corn (GM corn) and consuming trace levels
of Monsanto’s Roundup chemical fertilizer caused rats to develop
horrifying tumors, widespread organ damage, and premature death. That’s
the conclusion of a shocking new study that looked at the long-term effects of consuming Monsanto’s genetically modified corn.The study has been deemed “the most thorough research ever published into the health effects of GM food crops and the herbicide Roundup on rats.” News of the horrifying findings is spreading like wildfire across the internet, with even the mainstream media seemingly in shock over the photos of rats with multiple grotesque tumors… tumors so large the rats even had difficulty breathing in some cases. GMOs may be the new thalidomide.
“Monsanto Roundup weedkiller and GM maize implicated in ‘shocking’ new cancer study” wrote The Grocery, a popular UK publication.
Read More @ NaturalNews.com
by Graham Summers, Gains Pains Capital:
Now that the Fed has engaged in QE 3 (which is essentially QE infinite since it’s meant to run until things get where the Fed wants them), I decided to go back and count the recap the Fed/Feds’ interventions since the Great Crisis began in 2007.
Here’s a recap of some of the larger moves made during the Crisis:
Now that the Fed has engaged in QE 3 (which is essentially QE infinite since it’s meant to run until things get where the Fed wants them), I decided to go back and count the recap the Fed/Feds’ interventions since the Great Crisis began in 2007.
Here’s a recap of some of the larger moves made during the Crisis:
- Cutting interest rates from 5.25-0.25% (Sept ’07-today).
- The Bear Stearns deal/ taking on $30 billion in junk mortgages (Mar ’08).
- Opening various lending windows to investment banks (Mar ’08).
- Hank Paulson spends $400 billion on Fannie/ Freddie (Sept ’08).
- The Fed takes over insurance company AIG for $85 billion (Sept ’08).
- The Fed doles out $25 billion for the automakers (Sept ’08)
Read More @ GainsPainsCapital.com
by Charles Hugh Smith, Of Two Minds:
Online shopping is rippling through the economy, affecting not just retail but energy consumption and the job market.
Correspondent Marc A. responded to my recent entry Is Anybody Else Tired of Buying and Owning Stuff? (September 7, 2012) with an informed commentary on how online shopping is affecting the retail sector. The Web and online shopping is rippling through the economy, affecting not just retail but energy consumption and the job market.
Online shopping is rippling through the economy, affecting not just retail but energy consumption and the job market.
Correspondent Marc A. responded to my recent entry Is Anybody Else Tired of Buying and Owning Stuff? (September 7, 2012) with an informed commentary on how online shopping is affecting the retail sector. The Web and online shopping is rippling through the economy, affecting not just retail but energy consumption and the job market.
Read More @ OfTwoMinds.com
from Global Research:
Radiation from Japan’s nuclear accident has turned up in seaweed on the coasts of California, Washington and other parts of the West Coast of North America.
The ocean is so big … how could this be happening? Why didn’t the gigantic Pacific Ocean better dilute Fukushima radiation?
A 1955 U.S. government report concluded that the ocean may not adequately dilute radiation from nuclear accidents.
MIT says that seawater which is itself radioactive may begin hitting the West Coast within 5 years.
In 10 years, peak radioactive cesium levels off of the West Coast of North America could be 10 times higher than at the coast of Japan.
Read More @ GlobalResearch.ca
Radiation from Japan’s nuclear accident has turned up in seaweed on the coasts of California, Washington and other parts of the West Coast of North America.
The ocean is so big … how could this be happening? Why didn’t the gigantic Pacific Ocean better dilute Fukushima radiation?
A 1955 U.S. government report concluded that the ocean may not adequately dilute radiation from nuclear accidents.
MIT says that seawater which is itself radioactive may begin hitting the West Coast within 5 years.
In 10 years, peak radioactive cesium levels off of the West Coast of North America could be 10 times higher than at the coast of Japan.
Read More @ GlobalResearch.ca
from SchoonWorks
In show 32 of Dollars and Sense, Darryl Robert Schoon explains how paper money, invented in China, changed when it appeared in the West. In the West, paper money became a conveyer of debt. The bankers’ pact with government allowed bankers to profit as governments grew and grew and grew. Now, 300 years later, governments have grown so large, bankers can’t collect the debts they owe and the bankers’ system of credit and debt is collapsing. In that collapse, lies the freedom of all.
In show 32 of Dollars and Sense, Darryl Robert Schoon explains how paper money, invented in China, changed when it appeared in the West. In the West, paper money became a conveyer of debt. The bankers’ pact with government allowed bankers to profit as governments grew and grew and grew. Now, 300 years later, governments have grown so large, bankers can’t collect the debts they owe and the bankers’ system of credit and debt is collapsing. In that collapse, lies the freedom of all.
by Eric McWhinnie, Wall St Cheat Sheet:
After remaining calm for most of the summer, precious metals have been on the warpath like they have something to prove. Their move started last month and accelerated with the Federal Reserve’s latest quantitative easing program. The central bank’s third attempt to print prosperity has spurred a new round of balance sheet analysis and gold price targets.
Since the beginning of August, the price of gold has jumped 10 percent, while silver has surged 18 percent. Both precious metals attracted heavy attention and hit a six month high after the Federal Reserve said it would expand its long-term asset holdings by $40 billion each month, in addition to its ongoing extended Operation Twist program. The move will increase the central bank’s balance sheet far beyond its current $2.8 trillion total. In fact, Zero Hedge estimates that by the end of next year, the Federal Reserve’s balance sheet will increase more than $1 trillion to a total of $4 trillion.
Read More @ WallStCheatSheet.com
After remaining calm for most of the summer, precious metals have been on the warpath like they have something to prove. Their move started last month and accelerated with the Federal Reserve’s latest quantitative easing program. The central bank’s third attempt to print prosperity has spurred a new round of balance sheet analysis and gold price targets.
Since the beginning of August, the price of gold has jumped 10 percent, while silver has surged 18 percent. Both precious metals attracted heavy attention and hit a six month high after the Federal Reserve said it would expand its long-term asset holdings by $40 billion each month, in addition to its ongoing extended Operation Twist program. The move will increase the central bank’s balance sheet far beyond its current $2.8 trillion total. In fact, Zero Hedge estimates that by the end of next year, the Federal Reserve’s balance sheet will increase more than $1 trillion to a total of $4 trillion.
Read More @ WallStCheatSheet.com
from, Gold Money:
The monetary precious metals gold and silver held up fairly well in trading yesterday, considering the gains in the US dollar, as traders started to turn their focus back to the debt problems in Europe, with Spain showing reluctance to formally request financial aid from the European bailout fund. Such a bailout request – which for Spain would go hand in hand with new austerity measures and fiscal oversight from Brussels – is of course the condition for the start of unlimited bond purchases by the European Central Bank, hence the disappointment in the markets.
The December gold contract settled almost unchanged at $1,771.20, while the silver contract gained 35.1 cents (up 2.1%) and closed at 34.718. It even briefly printed a 35-handle with a high of $35.10 – a price we haven’t seen for over half a year. This is a rather strong showing, taking into account that the US dollar index (USDX) rose to 79.25 (a gain of 0.3%) leading to the usual “risk off” patterns. Silver has proven to be one of the best inflation hedges time and time again.
Read More @ GoldMoney.com
The monetary precious metals gold and silver held up fairly well in trading yesterday, considering the gains in the US dollar, as traders started to turn their focus back to the debt problems in Europe, with Spain showing reluctance to formally request financial aid from the European bailout fund. Such a bailout request – which for Spain would go hand in hand with new austerity measures and fiscal oversight from Brussels – is of course the condition for the start of unlimited bond purchases by the European Central Bank, hence the disappointment in the markets.
The December gold contract settled almost unchanged at $1,771.20, while the silver contract gained 35.1 cents (up 2.1%) and closed at 34.718. It even briefly printed a 35-handle with a high of $35.10 – a price we haven’t seen for over half a year. This is a rather strong showing, taking into account that the US dollar index (USDX) rose to 79.25 (a gain of 0.3%) leading to the usual “risk off” patterns. Silver has proven to be one of the best inflation hedges time and time again.
Read More @ GoldMoney.com
from Capital Account:
Simpson-Bowles, Obama’s bipartisan deficit commission of 2010, has become a political football in the Presidential race. In attempts to score political points Mitt Romney, Paul Ryan, and Joe Biden have flung it around in recent speeches and interviews. We talk to Former Republican Senator and co-chair of the Simpson-Bowles commission, Alan Simpson about how he and his co-chair propose to fix the deficit
Plus there is more evidence the US economy is slowing down as the August US housing starts number was below analysts’ expectations. Also mortgage lending in 2011 declined to its lowest level in 16 years, according to a report from Federal regulators. Moreover, FedEx, an economic bellwether, cut its global growth forecast. How do you sell US deficit reduction as a top priority in this environment? We talk to Alan Simpson about the US national debt and the fiscal cliff.
And the UK city of Bristol launched its own coinage and it has become the UK’s largest alternative to sterling. Lauren and Demetri talk about alternative currencies in today’s episode of Loose Change
Simpson-Bowles, Obama’s bipartisan deficit commission of 2010, has become a political football in the Presidential race. In attempts to score political points Mitt Romney, Paul Ryan, and Joe Biden have flung it around in recent speeches and interviews. We talk to Former Republican Senator and co-chair of the Simpson-Bowles commission, Alan Simpson about how he and his co-chair propose to fix the deficit
Plus there is more evidence the US economy is slowing down as the August US housing starts number was below analysts’ expectations. Also mortgage lending in 2011 declined to its lowest level in 16 years, according to a report from Federal regulators. Moreover, FedEx, an economic bellwether, cut its global growth forecast. How do you sell US deficit reduction as a top priority in this environment? We talk to Alan Simpson about the US national debt and the fiscal cliff.
And the UK city of Bristol launched its own coinage and it has become the UK’s largest alternative to sterling. Lauren and Demetri talk about alternative currencies in today’s episode of Loose Change
by PA Farruggio, Activist Post
You can call it karma or blowback, whatever makes you happy. The bottom line is that what America is now facing both internationally and domestically is all due to being a military industrial empire. The protesters in the streets overseas are in countries that most of us here at home would have difficulty finding on a map, for goodness sake!
The majority of those folks are not out there because of some inflammatory YouTube film. Perhaps the ultra fanatical Islamists may wish to have that the rallying point of the protests … to then better control their fellow citizens. No, the film most likely unleashed centuries-old rage and frustration with the United States’ imperial designs.
Read More @ Activist Post
You can call it karma or blowback, whatever makes you happy. The bottom line is that what America is now facing both internationally and domestically is all due to being a military industrial empire. The protesters in the streets overseas are in countries that most of us here at home would have difficulty finding on a map, for goodness sake!
The majority of those folks are not out there because of some inflammatory YouTube film. Perhaps the ultra fanatical Islamists may wish to have that the rallying point of the protests … to then better control their fellow citizens. No, the film most likely unleashed centuries-old rage and frustration with the United States’ imperial designs.
Read More @ Activist Post
by Staff Report, The Daily Bell:
Fed’s Bullard says QE3 was launched too soon … The Federal Reserve should have waited for clearer signs of a flagging economy before launching its new bond-buying program, the head of the St. Louis regional Fed bank said on Tuesday, adding that he would have voted against it. James Bullard, president of the St. Louis Fed, also told Reuters that he is sufficiently concerned about the risk of future inflation that he backs a controversial proposal by congressional Republicans for the Fed to return to having only a single mandate: preventing inflation. – Reuters
Dominant Social Theme: It may be necessary … just not yet.
Free-Market Analysis: Once again, the mainstream sets the debate when it comes to central banking.
Here is Reuters configuring the conversation in terms of the desired dialectic. The question is not whether central banks have the right morally or even legally to print trillions of dollars at will but only when such events shall take place.
There are other dialectical approaches used by the power elite to control the argument regarding the purpose of central banks. The biggest one is the battle between hawks and doves.
Read More @ TheDailyBell.com
Fed’s Bullard says QE3 was launched too soon … The Federal Reserve should have waited for clearer signs of a flagging economy before launching its new bond-buying program, the head of the St. Louis regional Fed bank said on Tuesday, adding that he would have voted against it. James Bullard, president of the St. Louis Fed, also told Reuters that he is sufficiently concerned about the risk of future inflation that he backs a controversial proposal by congressional Republicans for the Fed to return to having only a single mandate: preventing inflation. – Reuters
Dominant Social Theme: It may be necessary … just not yet.
Free-Market Analysis: Once again, the mainstream sets the debate when it comes to central banking.
Here is Reuters configuring the conversation in terms of the desired dialectic. The question is not whether central banks have the right morally or even legally to print trillions of dollars at will but only when such events shall take place.
There are other dialectical approaches used by the power elite to control the argument regarding the purpose of central banks. The biggest one is the battle between hawks and doves.
Read More @ TheDailyBell.com
from KingWorldNews:
Today Rick Rule told King World News that all of the global money printing, “… will eventually manifest itself into higher precious metals prices, and most likely sharply higher precious metals prices.” Rule, who is now part of Sprott Asset Management, also spoke about the rally in gold, silver, and the shares.
But first, here is what Rule had to say about the ramifications of more money printing: “The money being created has to find its way into something. I guess there are two choices. It could find its way into a default cycle. In other words the newly printed money would replace money that’s gone to ‘money heaven’ as a consequence of defaulting bonds, if you have a market clearing event.”
Rule continues @ KingWorldNews.com
Today Rick Rule told King World News that all of the global money printing, “… will eventually manifest itself into higher precious metals prices, and most likely sharply higher precious metals prices.” Rule, who is now part of Sprott Asset Management, also spoke about the rally in gold, silver, and the shares.
But first, here is what Rule had to say about the ramifications of more money printing: “The money being created has to find its way into something. I guess there are two choices. It could find its way into a default cycle. In other words the newly printed money would replace money that’s gone to ‘money heaven’ as a consequence of defaulting bonds, if you have a market clearing event.”
Rule continues @ KingWorldNews.com
from radio.goldseek.com:
by SGT,
Pastor Lindsey Williams provides an update on world events from his viewpoint. Stay tuned for this one all the way through. Lindsey explains how QE3 and the mortgage backed securities fraud will make us all serfs to the Federal Reserve, as Lindsey Williams warned would happen more than a year ago. The Banksters will own it all soon enough, just as Thomas Jefferson lamented:
by SGT, Pastor Lindsey Williams provides an update on world events from his viewpoint. Stay tuned for this one all the way through. Lindsey explains how QE3 and the mortgage backed securities fraud will make us all serfs to the Federal Reserve, as Lindsey Williams warned would happen more than a year ago. The Banksters will own it all soon enough, just as Thomas Jefferson lamented:
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”CLICK HERE for the interview.
by Pam Martens, Alternet.org:
By mid morning on Monday, September 17, as Occupy Wall Street
protesters marched around the perimeter of the Federal Reserve Bank of
New York, all signs that an FRPD (Federal Reserve Police Department)
existed had disappeared. The FRPD patrol cars and law enforcement
officers had been replaced by NYPD patrol cars and officers. That
decision may have been made to keep from drawing attention to a
mushrooming new domestic police force that most Americans do not know
exists.
Quietly, without fanfare or Congressional hearings, the USA Patriot Act in 2001 bestowed on the 12 privately owned Federal Reserve Banks, domestic policing powers.
Section 364 of the Act, “Uniform Protection Authority for Federal Reserve,” reads: “Law enforcement officers designated or authorized by the Board or a reserve bank under paragraph (1) or (2) are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence…Such officers shall have access to law enforcement information that may be necessary for the protection of the property or personnel of the Board or a reserve bank.”
Read More @ Alternet.Org
By mid morning on Monday, September 17, as Occupy Wall Street
protesters marched around the perimeter of the Federal Reserve Bank of
New York, all signs that an FRPD (Federal Reserve Police Department)
existed had disappeared. The FRPD patrol cars and law enforcement
officers had been replaced by NYPD patrol cars and officers. That
decision may have been made to keep from drawing attention to a
mushrooming new domestic police force that most Americans do not know
exists. Quietly, without fanfare or Congressional hearings, the USA Patriot Act in 2001 bestowed on the 12 privately owned Federal Reserve Banks, domestic policing powers.
Section 364 of the Act, “Uniform Protection Authority for Federal Reserve,” reads: “Law enforcement officers designated or authorized by the Board or a reserve bank under paragraph (1) or (2) are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence…Such officers shall have access to law enforcement information that may be necessary for the protection of the property or personnel of the Board or a reserve bank.”
Read More @ Alternet.Org
My Dear Friends,
Before you give up on finding a solution to protecting your retirement accounts against the real risks of street name, please Google "Self Directed Custodians."
Yes, I have names, but in this world recommending anyone is high risk. It is best for you to do your homework on who you find that will do what your discount broker or banks says no to.
They usually have legal opinions on their ways and means.
Regards,
Jim
My Dear Extended Family,
Why the Cluff deal is a Game Changer in the gold industry:
The scenario that gave comfort to hedge funds is the capital intensity of building a mine. That means all money in before profit out. The hedge funds believed by raiding the price of the shares of gold explorers and junior gold producers that they could strangle the company’s ability to raise funds free of major dilution, if at all. Unable to raise funds, the company would not be able take a property to the level of Definitive Feasibility where it is financeable by various industry standard methods free of the issue of significant common shares.
Hedge funds that undertook short and distort did so feeling they had no risk because they had crippled the company’s ability to finance. We are all familiar with the dirty tricks used, selling of good news and capping activities undertaken in order to keep the company from it historical financing methods.
Looking at the Cluff deal, the key elements to this game changer is the bypassing of the normal cash royalty company and raising significant money prior to Definitive Feasibility from a company not normally a financier of the mine development without dilution of any significant degree. Hedge funds beware! Your risk free game of destroying just got extremely risky, as gold begins its move to and above $3500 and non dilution financing is available, dependent on the property, before Definitive Feasibility, not the stock price. This is not a new way to structure a deal. It is the timing, size and source that distinguish it. Maybe Google might find this an interesting source for those billions in earnings?
1. Samsung is not your usual source of finance for the development of a mine.
2. Bakino Faso is ok, but not downtown Denver or Tokyo.
3. Cluff bypassed the normal lenders and financiers for minerals such as the gold royalty companies, international banks that specialize in mineral financing and quasi government lending institutions all that rarely will commit significant money to any project prior to a completed Definitive Feasibility Study and this is the KEY for your understanding.
4. Cluff vended a Gross Royalty Option limited in time to the financing entity as a small percentage of the gross gold sold as a sweetener to the cost of money.
5. Samsung has a return well above anything possible to find elsewhere with less risk than a junk bond inherently has.
This is bad news for the hedge funds who think they have killed good projects in developing nations by their short and distort tactic. This is bad news for the major royalty companies with projects in Africa, Cluff eliminated the normal route of cash producing royalty financing. This news is good news to those juniors with serious projects as they negotiated their own short term Gross Production Royalty agreement prior to having a Definitive Feasibility Study as a form of paying an attractive interest rate.
The key elements to this game changer is the bypassing of the normal cash royalty company and raising significant money prior to Definitive Feasibility from a company not normally a financier of the mine development without dilution of any significant degree. Hedge funds beware! Your risk free game of destroying just got extremely risky as gold begins its move to and above $3500 and non dilution financing is available dependent on the property, not the stock price.
The growing use of this method at that early time in a company’s history reverses the fundamental weakness that Hedge Funds took advantage of in the capital intensive business of developing major new gold mines for exploration and development companies as well as junior producers.
The formula for your understanding:
1. Significant money.
2. Prior to Definitive Feasability.
3. For a junior producer.
4. From a cash rich company not usual to mine exploration & development financing.
5. Not in the form of the cash royalty company as a middle man.
Regards,
Jim
Jim Sinclair’s Commentary
It seems some of the things we coined here for years have been picked up in MSM. No credit from them, but I’ll assume they meant to say thanks.
"QE to Infinity" and now of all things, "Gold is Money." Actually gold is "Honest Money" and now gold mining is a safe way to get a great return of capital for cash rich non-gold companies.
Things are certainly changing.
Deutsche Bank: GOLD IS MONEY Matthew Boesler | Sep. 18, 2012, 5:53 PM
Is gold money?
It’s become a tireless debate: goldbugs seem to cling to the shiny yellow metal with a religious fervor not usually displayed by anyone toward other asset classes, and it’s been known to frustrate some who don’t share their views.
Gold often gets lumped in to investment forecasts with other "commodities" – real, consumable things like oil or food.
But Deutsche Bank analysts Daniel Brebner and Xiao Fu say gold is seriously misunderstood, and in a new report – wherein they update their gold target to $2000/oz sometime in the first half of 2013 – they explain that "gold is not really a commodity at all."
The undisputable evidence for the case that gold is money, according to the Deutsche Bank analysts:
While it is included in the commodities basket it is in fact a medium of exchange and one that is officially recognised (if not publically used as such). We see gold as an officially recognised form of money for one primary reason: it is widely held by most of the world’s larger central banks as a component of reserves.
More…
Jim Sinclair’s Commentary
If you are a bankster you are calling your Washington minions tonight.
State court ruling deals blow to U.S. bank mortgage system By Michelle Conlin
Fri Sep 14, 2012 7:04pm EDT
(Reuters) – The highest court in the state of Washington recently ruled that a company that has foreclosed on millions of mortgages nationwide can be sued for fraud, a decision that could cause a new round of trouble for the nation’s banks.
The ruling is one of the first to allow consumers to seek damages from Mortgage Electronic Registration Systems, a company set up by the nation’s major banks, if they can prove they were harmed.
Legal experts said last month’s decision from the Washington Supreme Court could become a precedent for courts in other states. The case also endorsed the view of other state courts that MERS does not have the legal authority to foreclose on a home.
"This is a body blow," said consumer law attorney Ira Rheingold. "Ultimately the MERS business model cannot work and should not work and needs to be changed."
Banks set up MERS in the 1990s to help speed the process of packaging loans into mortgage-backed bonds by easing the process of transferring mortgages from one party to another. But ever since the housing crash, MERS has been besieged by litigation from state attorneys general, local government officials and homeowners who have challenged the company’s authority to pursue foreclosure actions.
More…
Jim Sinclair’s Commentary
Things are changing big time for gold.
SOFAZ purchases 10 tons of gold Tue 18 September 2012 07:10 GMT | 3:10 Local Time
Within the framework of application of investment instruments, State Oil Fund of Azerbaijan has purchased 10 tons of gold, Executive Director of the Fund Shahmar Movsumov said.
To him, at present, that gold is kept at London banks and preparations are carried out in direction of bringing it to the country, APA reports.
‘SOFAZ has applied to the Cabinet of Ministers in connection with exemption of gold from customs duties. The gold will be kept at special storehouses of the CBA’.
Movsumov noted that preparation process of draft budget for 2013 approaches the end: ‘The draft considers implementation of big oil-gas projects. The Fund spent $200m to purchase of foreign companies’ shares, so far. By the year-end, this sum will be reached up to $600m. In the coming days the Fund will buy property in some countries’.
More…
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