Consider that Russia reduced its holdings of (sold) U.S. Treasuries by 20% in March 2014 – no surprise there. And China just agreed to a non-$US Settlement deal with Russia’s largest bank, VTB. And China and Russia just agreed to a $400 Billion 30 year Natural Gas Purchase Agreement.
The move away from the $US and the Currency Wars, in general, are intensifying and it is increasingly likely the Chinese Yuan will displace the $US as the World’s Reserve Currency. Full Story
By: Chris Powell, Gold Anti-Trust Action Committee Inc. - 23 May, 2014
As market rigging by the government is fully contemplated by law, the only thing to be done about it is to expose it. The British Financial Conduct Authority's action against Barclays for manipulating the gold market is welcome mainly for establishing that gold market manipulation is not mere "conspiracy theory" and for potentially making it a little harder for governments to rig the gold market surreptitiously with the cover of intermediaries. Full Story
Denying Say’s Law is the mistake. An appreciation of the law’s truths explains why falling prices, the same as a rise in the purchasing power of money, are not economically destructive. It explains German and Japanese post-war success and that of the titans of technology. The tragedy of our willful ignorance of a truth accepted before Keynes’s false justification of state intervention is that we are condemned to repeat this most common of misconceptions until we banish economic progress altogether. Full Story
By: Chris Powell, Gold Anti-Trust Action Committee Inc. - 23 May, 2014
Since 1999 we have been collecting and publicizing evidence and documentation of the longstanding Western central bank scheme of surreptitiously suppressing the price of gold as part of a broader scheme of controlling the currency, bond, and equity markets.
The documentation is overwhelming and includes admissions by central bankers and records in government archives. Some of this material is quite current. We have posted it all at our Internet site, GATA.org Full Story
To wit, the Fed has been pronouncing “recovery” for 59 months now – making it the third longest “economic expansion” in history, if only from the low water mark of the depths of the 2008 crisis; and yet, GDP growth was at best flat last quarter (yeah, I know, “the weather” was to blame). Not to mention, the Labor Participation Rate is at a 35 year low (and an all-time low for 20 somethings); median household income is at a 17-year low – as prices of items we “need versus want” are at or near all-time highs threatening to explode care of generational droughts; and entitlements support more than half the population with horrific demographics guaranteeing a rapidly expanding “dependency nation.” Full Story
But there is danger going forward. The de-dollarization taking place between China and Russia is also spreading elsewhere as China in particular cuts more deals with countries to conduct trade in national currencies rather than the US$. The huge government debt of the Euro countries , Japan and the US is also a major problem going forward. Right now it would appear that the Euro zone is the most vulnerable to debt default even though the Debt/GDP for Japan is much larger. If there is to be another major debt crisis, and I continue to believe that it is a matter of when not if, the debt defaults might start in the Euro countries before moving to Japan and then finally the US. Full Story
By: Peter Schiff, Euro Pacific Capital - 22 May, 2014
While the world talks about the dangers of deflation, which offers no harm to economies or consumers, actual inflation is everywhere to be seen and nowhere acknowledged. Instead, we get a universal agreement that the middle class must continue to suffer so that the Fed and financial speculators can continue to revel in the charade. Full Story
Of course there will be periodic setbacks and “corrections” that occur over the course of the bull market and we may still witness such a setback this summer before the 60-year cycle bottoms. But the odds that the 60-year cycle will completely derail the bull market are slim. Full Story
First I want to acknowledge how frustrating the markets have been over the last several months for most of you. There has been no clear cut trend in which one can just take a position and not get caught up in the chopping action the markets have been giving us. As I have said in the past the hardest part of trading is to get your initial position to stick before your sell/stop gets hit. If your a bear it’s two steps down and one step up and if your a bull it’s two steps forward and one step back. It’s that one step after you take your initial position that usually gets you if you don’t buy the exact high or low. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 21 May, 2014
Gold Leasing – to what extent There is a belief that central bank gold in the custody of the world’s leading central banks such as the Fed, the Bank of England and the Banque de France has been leased out to the market. Central Banks have confirmed this, but it remains a source of contention. Even where the gold of the world’s central banks are held in the world’s leading central banks in a custodial arrangement this is so and it is reasonable to assume that this could not be done without the gold’s owner’s permission. Full Story
By: The Gold Report and Pierre Lassonde - 21 May, 2014
Pierre Lassonde revolutionized investing with the creation of the first gold royalty company. Three decades later, he is as confident in this model as ever, especially considering the difficulties of the majors in discovering large, high-grade reserves. In this interview with The Gold Report, this director and former chairman of the World Gold Council discusses the significance of the shift in gold ownership from West to East, the problem of mining scale and the results of the industry's failure to develop new prospecting technology. Full Story
By: Jeff Clark, Senior Precious Metals Analyst - 21 May, 2014
If I asked you why you think I’m bullish on platinum and palladium, you’d probably point to the strikes in South Africa, the world’s largest producer of platinum. Or maybe the geopolitical conflicts with Russia, the largest supplier of palladium. Maybe you’d even mention that some technical analysts say the palladium price has “broken out” of its trading range. Full Story
Cyprus turned out to be a world-wide trial run gaging public sentiment and reaction to the new “bail in” policies established by those responsible for the theft of their depositors’ money in the first place. The world-wide silence to this theft from the public and their elected officials was deafening flashing a green light setting the stage for the thieves, with the blessing of their government, to rob the depositors again! The precedent is now established for this theft to repeat itself all over the world, where the laws already exist in the US to do so. Full Story
Many people today see the Fed’s Quantitative Easing as money printing. They remember what happened in the 1970’s, and they instantly jump to conclusions. However, we live in a different world. To illustrate this, consider the following story about Joe, a promising and eager young manager in a struggling manufacturing company. Full Story
The first quarter for gold was a mirror image of a year ago with almost no selling by the exchange traded products and falling demand in China and India, according to the World Gold Council. China bought 18 per cent less gold, with gold bar and coin purchases tumbling 55 per cent while Indian consumption was down 26 per cent. The sudden price rise in January probably put off opportunistic buyers who had swooped on bargain prices in the sell-off by the ETPs last year. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 20 May, 2014
Gold researcher and GATA consultant Koos Jansen today calls attention to a long broadcast about gold market manipulation made this month on the German-language television network 3sat, which serves Germany, Austria, and Switzerland. The broadcast came on the 3sat program "Makro" and focused on recent complaints about the daily London gold fixings. It quoted market analyst and GATA consultant Dimitri Speck and Hong Kong fund manager William Kaye, who is frequently interviewed by King World News about gold market manipulation. The program does not seem to have gotten much into central bank involvement in the market manipulation, but questions are raised about Germany's gold reserves vaulted abroad, so this may have been a good start. Full Story
Yellen is arguably now more like a stock market cheerleader, than somebody working to meet inflation targets and create jobs for the average American. The money the Fed has printed with its QE program has been used to buy bonds from the government and to buy OTC derivatives from the banks. This is a very risky way to attempt to rebuild the American economy. Full Story
Europe is abuzz with Capital in the Twenty-First Century by French economist Thomas Piketty, released in Europe in March of this year and now a best-seller. It has since crossed the Atlantic and is already the number-one best-seller for booksmith Amazon. It has been called a “blockbuster” of a book, and many reviewers believe that it has the ability to revolutionise the study of economics. Full Story
Gold did NOT blow-off into a bubble high in 2011, all the drivers for continued higher gold prices are still valid, demand is huge, supply will be restricted when the western central banks run out of gold or choose to terminate “leasing” into the market, and government expenses, “money printing” and bond monetization are out of control and accelerating. Full Story
We have talked about what is negative for the US stock market. From the signal in the banks vs. S&P 500 to a young uptrend in long-term T bonds vs. the S&P 500. Here is the 2011-2014 market leading BKX-SPX in breakdown mode. Full Story
Global synchronized growth, as measured by the Global Purchasing Managers’ Index (PMI), remained stable or positive for the past 12 months until Japan reversed the momentum in April with a precipitous drop in its PMI. China is contributing modest growth but, fortunately, the U.S. and Europe are rebounding. This lack of consistent global momentum has created a short-term, volatile, hot and cold, stop and go sentiment. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 19 May, 2014
One of the biggest questions at the end of 2013 was how the Treasury market would react to the reduction of bond buying that would result from the Federal Reserve's tapering campaign. If the Fed were to hold course to its stated intentions, its $45 billion monthly purchases of Treasury bonds would be completely wound down by the fourth quarter of 2014. Given that those purchases represented a very large portion of Treasury bond issuance at that time, it was widely assumed by many, me in particular, that the sidelining of such huge demand would push down the price of Treasury bonds. Without the Fed's bid, interest rates would have to rise. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 19 May, 2014
Today's statement by the European Central Bank added that the signatories to the new gold agreement "do not have any plans to sell significant amounts of gold." Taking this assertion seriously requires believing that the signatories indeed still have "significant amounts of gold." As was disclosed by the secret March 1999 report of the staff of the International Monetary Fund, preventing an authoritative answer to this question is the foremost objective of Western central bank accounting... Full Story
By: The Gold Report and Charles Oliver - 19 May, 2014
Charles Oliver, lead portfolio manager with the Sprott Gold and Precious Minerals Fund, believes the only thing between investors and bigger investment returns on precious metals equities and bullion, especially silver, is time. In this interview with The Gold Report, Oliver discusses silver and gold demand drivers, as well as portfolio ideas that figure to get bigger with time as the trigger. Full Story
Tuned in aficionados of such mental exercises would chime in with the Golden Ratio being the most important number in the world when it comes to explaining movements in financial markets, and they would be correct. Fibonacci based retracements and resonance / ratio based projections have a tendency to mark turning points of varying degrees more often than not, extending into Elliott Wave Theory, W.D. Gann’s work, etc. And as you know, our own work is based in this approach a well in recognizing this tendency. Full Story
Summing up, the outlook for gold, silver, and mining stocks remains bearish, but not extremely bearish, which means that we don’t increase the size of the short position just yet. Precious metals are not responding strongly (we saw some reaction in the final part of last week, though) to the dollar’s rallies so far, but it seems that investors and traders are simply waiting for a confirmation of the breakout in the USD Index (there have been cases when the metals’ reaction was delayed in the past). Full Story
By: Marin Katusa, Chief Energy Investment Strategist - 19 May, 2014
To share our excitement, Doug and I thought it would be a great idea to literally bring you into the room to see and hear what we see and hear—and thanks to modern technology, I present to you today the Casey Energy Report (CER) Crossfire. One of the few times I filmed a CER Crossfire was with Keith Hill from Africa Oil. It’s not something I do regularly—only when I’m really excited about a company. The company we have on CER Crossfire today, Petromanas Energy (PMI.V), is chasing world-class, elephant oil deposits, but rather than deepwater Africa (like Keith did with Africa Oil), it’s drilling deep onshore in Europe. Full Story
Gold investors ought to be reading ‘The Death of Money’ by Jim Rickards this summer. He explains how an executive order raising the gold price to $7,000 will be the only way to break a deflationary downward spiral in the US if money printing reaches its limits and the Fed pulls back, as is happening this year. Full Story
Money Manager of over $8 billion in bonds, equities and precious metals, via Navellier Gold, Louis Navellier sees a flight to safety into the Euro currency, amid geopolitical instability in Ukraine and Asia. Dollar weakness portends inflation, which will put a floor under the precious metals sector. Wall Street Wizard, Peter Grandich thinks the precious metals sector rocket is primed and ready for take off sometime this year. He concurs with the folks at GATA.org that the gold and silver markets are being manipulated via the leverage facilitated by the derivatives markets. He points to the LIBOR scandal and the London Gold Fix as prima facie evidence of manipulation. Full Story
Based on several thousand years of history, and based on the last 100 years of fiats, gold will continue to rise as a store of value, and almost all fiats will fail, massively. Which fiats will continue? The Yuan and the Ruble, for two. The Panama Balboa is another possibility, but Panama will have to do some sorting out to get rid of the fiat US dollar, its paper currency. The official money of account is the Panama balboa, but it ceased printing around 1941, in favor of the US dollar. This little Central American country has been making preparations to disassociate from the fiat Federal Reserve Notes. Full Story
Good morning from 30,000 feet, somewhere over the great American West! I admit to being a little overwhelmed as I write to you on my way home from the Strategic Investment Conference. After three days with two dozen of the finest investors, economists, and political scientists anywhere in the English-speaking world, it is going to take me weeks to think through the real-world implications of all I have learned. Full Story
Hello again from the Strategic Investment Conference in San Diego, California! John Mauldin took the stage on day 2 with a powerful message: while the human brain struggles to anticipate exponential change, our economic future quite literally depends on a race between two accelerating curves – debt and innovation. Full Story
Good morning from sunny San Diego, California! As the sun rises on the second day of the Strategic Investment Conference, I am absolutely blown away. John and Altegris put on an amazing show, and this is simply unlike any investment conference I have ever attended. Let me explain… Full Story
Another choppy week for markets and stocks with no real direction. It’s still very hard to catch a winner. We saw one stocks we’ve been eyeing for a while as it built its super base, and it broke-out Thursday on heavy volume which is usually the blueprint to success, but it turned around and failed the breakout right away on Friday. You know that it remains dangerous if textbook breakouts still fail. As for the precious metals, they are chopping around as well and are not anything to write home about. Full Story
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