Friday, April 29, 2011

It's Getting Plain Silly: MF Global Hikes Silver Margin To 175% Of CME, Or Over 10% Of Contract

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GoldCore Questions On Comex Silver Default Due To Secret Buying By Russian Billionaire, Chinese Traders and People's Bank Of China

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Money & Power: Goldman Sachs

It has two parts, from 2 videos on the history of Goldman Sachs. From the beginning of the Federal reserve to the latest bailouts, Goldman has been there. For those who don't know much, checkout the first video before you watch the 2nd.
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Currency Dead End Paradoxes

Several very important currency effects are at work. Most economists are either silent on the factors or wrong footed on the dynamic. That is not surprising since they have been incorrectly analyzing, interpreting, and forecasting the financial crisis as it built up in 2005 and 2006, and as it exploded in 2007 and 2008 to surprise almost all of them, even as it has failed to recover in 2009 and 2010 in contrary fashion to their deceptive rosy positions. The major currencies must be examined for some key paradoxes. As the monetary system crumbles into its final phase, the foundation under which the major currencies stand, trade, and change is breaking down. Refer to the sovereign debt structure, overly burdened by runaway government debt. The focus here is on some important paradoxes that go directly against both common sense and traditional economic logic. The unusual under-currents have confused most economists to the point that the economist profession has become a laughingstock to the American households, a chain of promotional carnival barkers for Wall Street in pursuit of annual bonuses, a heretic priesthood to parade in front the media cameras, and a den of USGovt harlots in search for official gatekeeper posts. They understand pitifully little within the USEconomy, within the US banking industry, and within the fracturing latticework in global finance. My acrimony toward their profession has been the most consistent theme of the Hat Trick Letter for seven full years. The following paradoxes are powerful contradictions that fly in the face of standard economic theory.
Jim willie

Wednesday, April 27, 2011

Rogers: Silver could hit 'dangerous' level of $150 this year

Commodities expert Jim Rogers has warned silver could turn “parabolic” and rise to $150 this year.
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$50 Silver: Sell, Sell, Sell?

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Contrarian Setup for Delayed QE3

The critical question facing the market and the nation is -- what will happen when the Fed halts its monetizing machinations at the end of June? Some believe that the Fed will (out of fear) immediately move into QE3. My own guess is that after June 30, the Fed will wait a bit, just to see how the markets are reacting to the end of quantitative easing.
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Tuesday, April 26, 2011

Short Sellers Now Screaming About a Buy Side Silver Conspiracy

One fantastic article:
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Richard Russell endorses gold manipulation thesis

Russell is a long-time gold bug, but for traditional inflationary reasons. He resisted the new argument, developed by writers associated with Bill Murphy’s Le Metropole Cafe website, that the gold price is manipulated by a Washington-Wall Street alliance.
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London Source - Asian Buyers Will Take Silver Over $100

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Silver Undergoes 10% Correction As Dollar Poundage Resumes; Dollar-Backed Swiss Franc Now Flight To Safety

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Apmex Starts Reverse Inquiry: Seeks To Buy "Any Quantity" Of Silver From Clients At $3 Over Spot

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CME Hikes Silver Initial And Maintenance Margins By 9%

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Is the World Too Big to Fail? The Contours of Global Order: Noam Chomsky

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Sunday, April 24, 2011

Why Is Anyone Still Waiting to Sell the Dollar?

"The Fed can buy billions, even a trillion or so, but if and when the market is moving against the policymakers then there is no stopping. The Fed cannot stem that tide. There is only so much that they can manage and so it is something that they have to watch very carefully. At the same time, they are not terribly concerned. If the bond market is falling, you do not know whether it is because of more economic growth or because of more inflation, and you really only know after the fact.
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Why Investors Are Buying Silver As If There Is No Tomorrow

Silver's traditional use categories include coins and medals, industrial applications, jewelry and silverware, and photography. The physical properties of silver include ductility, electrical conductivity, malleability, and reflectivity. The demand for silver in industrial applications continues to increase and includes use of silver in bandages for wound care, batteries, brazing and soldering, in catalytic converters in automobiles, in cell phone covers to reduce the spread of bacteria, in clothing to minimize odor, electronics and circuit boards, electroplating, hardening bearings, inks, mirrors, solar cells, water purification, and wood treatment to resist mold. Silver was used for miniature antennas in Radio Frequency Identification Devices (RFIDs) that were used in casino chips, freeway toll transponders, gasoline speed purchase devices, passports, and on packages to keep track of inventory shipments. Mercury and silver, the main components of dental amalgam, are biocides and their use in amalgam inhibits recurrent decay.
Silver

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings

China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
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Thursday, April 21, 2011

How to Keep Your Silver Safe

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Exorbitant Privilage

For more than half a century, the U.S. dollar has been not just America's currency but the world's. It is used globally by importers, exporters, investors, governments and central banks alike. Nearly three-quarters of all $100 bills circulate outside the United States. The dollar holdings of the Chinese government alone come to more than $1,000 per Chinese resident.

This dependence on dollars, by banks, corporations and governments around the world, is a source of strength for the United States. It is, as a critic of U.S. policies once put it, America's "exorbitant privilege." However, recent events have raised concerns that this soon may be a privilege lost. Among these have been the effects of the financial crisis and the Great Recession: high unemployment, record federal deficits, and financial distress. In addition there is the rise of challengers like the euro and China's renminbi. Some say that the dollar may soon cease to be the world's standard currency--which would depress American living standards and weaken the country's international influence.

In Exorbitant Privilege, one of our foremost economists, Barry Eichengreen, traces the rise of the dollar to international prominence over the course of the 20th century. He shows how the greenback dominated internationally in the second half of the century for the same reasons--and in the same way--that the United States dominated the global economy. But now, with the rise of China, India, Brazil and other emerging economies, America no longer towers over the global economy. It follows, Eichengreen argues, that the dollar will not be as dominant. But this does not mean that the coming changes will necessarily be sudden and dire--or that the dollar is doomed to lose its international status. Challenging the presumption that there is room for only one true global currency--either the dollar or something else--Eichengreen shows that several currencies have shared this international role over long periods. What was true in the distant past will be true, once again, in the not-too-distant future.

The dollar will lose its international currency status, Eichengreen warns, only if the United States repeats the mistakes that led to the financial crisis and only if it fails to put its fiscal and financial house in order. The greenback's fate hinges, in other words, not on the actions of the Chinese government but on economic policy decisions here in the United States.

Incisive, challenging and iconoclastic, Exorbitant Privilege is a fascinating analysis of the changes that lie ahead. It is a challenge, equally, to those who warn that the dollar is doomed and to those who regard its continuing dominance as inevitable.
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Saturday, April 16, 2011

Say "Goodbye" to the Dollar

It appears, with the addition of South Africa to the BRIC alliance, that gold is being contemplated as a means for backing a new reserve currency. China and South Africa are the two leading gold-producing countries. Russia is the sixth leading gold producer, and Brazil is 15th. But this is not an easy game to win, because the dollar's position is almost unbeatable. Furthermore, the United States, Canada and Australia have steady gold production. But here, at the BRIC Summit, a serious challenge is being mounted. If the dollar is to be overthrown, a humble beginning must be attempted. And who knows what countries will join the BRIC Summit next year?
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Bernanke: there is no inflation

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Inflation Explained

From the bears who explained quantitative easing so that even CNBC anchors now know what POMO is, comes the follow up: Inflation explained. So easy that no Ivy League Ph.D. is guaranteed to understand it.
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Inflation: "There Will Be A Lot Of It Suddenly

As for the gold standard: "If I am right about the dynamics of the Federal debt, not only is the mathematics for a gold standard compelling but so are the politics." In other words, and this should be no surprise to anyone, the transition to real money will continue until the fraud that is unbacked fiat is finally eliminated, with or without the Fed's support.
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Get the physical silver: thats what investors are discovering

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Thursday, April 14, 2011

The Coming Bond Bust

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BRICS Leaders Demand More Power, Attack EU And US Old Guard

A proposal to use local currencies, not dollars, to establish mutual credit lines at development banks. President Wu said: "Trade settlement in local currencies among the five countries will promote trade and investment liberalization. It will lead to even closer business and trade ties among these five countries."
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Don’t Mistake Revolution in the Middle East for Democracy: An Interview With Don McAlvany

My recent post of Lindsey Williams is supported here with this podcast. A must listen!
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Wednesday, April 13, 2011

Inflation Actually Near 10% Using Older Measure

Since 1980, the Bureau of Labor Statistics has changed the way it calculates the CPI in order to account for the substitution of products, improvements in quality (i.e. iPad 2 costing the same as original iPad) and other things. Backing out more methods implemented in 1990 by the BLS still puts inflation at a 5.5 percent rate and getting worse, according to the calculations by the newsletter's web site, Shadowstats.com.
inflation

Bombshell: Lindsey Williams tells all on "new world order"

Lindsey Williams tells what happened, whats coming and why! Tells why the elite are pulling the strings to shape the one world order planned! It's a tell all like never before, as all the pieces are laid out before you.
When you start the audio, cut right in the middle of the audio, it's two hours and you want the second hour. Tell everyone you know to listen. If you check the story out and know about the economy - you will see it makes sense. Jon

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Institutions Are Way Under-Invested in Gold

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Will The Precious Metals Rally Continue if There is No QE3?

Let's attack this question from two angles, the fundamental economic and geopolitical environment, and from a technical analysis perspective.

First the fundamental and geopolitical perspective:

Clearly, Gold (and Silver and the Mining Stocks) has risen more than six hundred percent over the past decade, a decade that has seen fiat money supply rise dramatically domestically and globally. Over the past two years, U.S. money printing has exceeded all the money created from the time of the Founding Fathers through the Reagan administration. This fanatical printing of U.S. Dollars has debased the purchasing power of the Dollar, forcing precious metals to rise as a defense against this hyperinflation.
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Sunday, April 10, 2011

The Curve In The Road

TWO roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

– Robert Frost
inflation/deflation

Thursday, April 7, 2011

Joseph Stiglitz: of the 1 Percent, by the 1 Percent, for the 1 Percent

1 Percent of the US takes the Income of 25 Percent " the point is that there has been this growing inequality not only in income but actually inequality of wealth is even much greater , there is a shrinking of opportunity it's not just that the people on the top are getting richer , if they were getting richer because they were contributing more to our society and everybody else was doing well that will be one thing but actually they are gaining and everybody else is decreasing in fact right now it is not just the bottom but even the middle , the median income half above half below are poorer today than they were half a decade ago , so all the growth that has occurred in our country in the last decade or more has gone to the upper 1 , 2 percent at the same time there is really shrinking opportunity ...."
ApriL 7

No Investment Goes Straight Up...

These trading theories may have merit in a free market, but the world we live in is anything but that.
Take the measuring stick of all financial transactions, the dollar. The dollar itself is a highly manipulated idea that knows no limits. The dollar can be created or destroyed at will of the Power Elite that control our world. Through the Fed manipulating interest rates, back door bailouts, plunge protection, toxic asset cleansing, and being the buyer of last resort of the entire United States Debt, there is no limit to the amount of dollars that can be created. How can we begin to measure the value of an asset, if our measuring stick is corrupted.
Since there is no sense of what the dollar is, there is no reality in the markets that are since they are measured in dollars.
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Why you should buy gold and silver now

The only thing I disagree with is, buying anything other then the physical. Stay away from SLV and GLD. If you have to pick one, SLW or GG would be the better plays. JPMorgan owns SLV.
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Legislation Repealing Controversial Form 1099 Rules Passed By Senate, Headed To White House

(Kitco News) Both chambers of the U.S. Congress have approved legislation to eliminate controversial new Form 1099 tax-reporting requirements that coin dealers and other business organizations had complained was too onerous.
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Jesse Ventura: Enough Government Cover-ups! It's time for a Revolution!

Vote none of the above.......
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The G-7 Forex Intervention Is A Perfect Example Of How Manipulated The Global Currency Market Really Is

And don't get me started on the precious metals markets. As I have written about previously, very compelling evidence of manipulation in those markets has been handed to the U.S. government and they have essentially done next to nothing with that evidence.

Not that people don't make money in the financial markets. Some people make a ton of money. But those people are experts and they know how to survive in a "dirty game".

If you are an amateur, you really need to think twice before diving too deeply into the financial markets. If you think that you can jump into the Forex or the U.S. stock market and "get rich quick" you are in for a rude awakening.
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IMF Issues Biggest Criticism Of US Policy To Date: Says Treasury Should Put GSE Obligations On Balance Sheet

Excerpt: (carry Fannie and Freddie's roughly $7 trillion in debt (discussed extensively by Zero Hedge over a year ago: "Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars") on the books: a move that would send US debt to well over $20 trillion and make the ratio of marketable debt (the lowest common debt denominator) to GDP well over 100%.)
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In Case Of Government Shut Down, Close IRS... But Keep POMO Open

Yes, the Fed keeps printing money and I can't get my tax refund!
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Gold, Silver And Oil Are All Skyrocketing And That Is Bad News For The U.S. Economy

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Are we running out of Silver?

the street

Monday, April 4, 2011

Sprott Physical Gold Trust Announces Follow On, Will Sequester Another $300 Million In Physical; PSLV Next?

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The Inflation Tsunami

As the world reflects on the earthquake and tsunami tragedy still unfolding in Japan, investors are seeking to understand the economic and financial market implications. There are some general observations that one can make at this point, the most important of which is to recognize that, in much the same way that the Japanese authorities are responding to the disaster with monetary stimulus, other major governments around the world continue to implement stimulus of their own in a futile and counter-productive effort to restore high rates of economic growth following the global credit crisis of 2008. The inevitable result of these responses to disasters, natural and man-made, is a global inflation tsunami which is going to cause significant economic damage. Time is running out for investors to escape into alternative assets.***
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A Flaw In The Silver Topping Theory

There seems to be a lot of silver pundits calling for a major top in silver lately. There’s basically two main reasons why they are calling for a top: 1) silver is currently stretched above its long term moving averages and 2) silver looks spiky on a chart. Anybody that has followed markets for a while and looked at charts knows that when they see things like that they should grow cautious. This is because they have most likely experienced the other side of a spike at least once, where the market snaps back hard to the downside. They have also likely experienced that hard move down with an overly aggressive position due to being too bullish at the top, which caused even more painful losses.

So given that there are two good reasons to be cautious on the silver market, are there any good reasons that caution should be discounted at the current time? Let’s look at the state of the gold market at previous major tops in silver. The next two charts show silver and gold’s relationship to their 200 day moving averages during two previous major tops in silver and gold. Notice how silver and gold made major tops when they both became stretched above their 200 day moving averages.
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Former CIA Analyst Tells Truth About Libya Intervention On CNN, Hilarity Ensues

Former CIA analyst Michael Scheuer appeared on CNN and told his lovely blonde and brunette anchors the truth about what is really happening. The hilarious Stepford Wives reaction and the unprecedented cognitive dissonance the ensues is worth the price of admission.
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Main Street America is Rising Up

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Sunday, April 3, 2011

Richard Russell: Gold is the Safest Currency

Better listen to this man. Wow!
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Watch "Inside Job" - The Wall Street Horror Movie, For Free

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Goldman's History Of Borrowing From The Fed

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Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak

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WORLD GOLD COUNCIL SUPPORTS GOLD PRICE MANIPULATION!

THEY ARE VEHEMENTLY AGAINST THE NEW POSITION LIMITS RULING!
Gold

Ron Paul to Probe U.S. Mint Coin Shortage

Texas (Kitco News) -- Rep. Ron Paul, R-Texas, has one question for the U.S. Mint: why is there a coin shortage?

He is aiming to get to the bottom of this during a scheduled April 7 hearing of his U.S. House Subcommittee on Domestic Monetary Policy to examine the bullion programs at the U.S. Mint.

“We are going to try and find out what the Mint has done so they can give us a better answer as to why there is a shortage. Why can’t they keep the supply of coins up?” said the congressman in an exclusive interview with Kitco News.
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James Turk - Record Silver Backwardation Spells Danger for US Dollar

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