GATA’s Bill Murphy: High Gold Prices Bad for Business
Uploaded by KitcoNews on Feb 21, 2012
GATA’s Bill Murphy joins us from the California Resource Investment Conference for this special Kitco News/ Cambridge House joint-production. In the interview, conducted by Tommy Humphreys, Murphy explains why high gold prices are “bad for business”. Feb. 21, 2012.
Occupy the SEC exposes how Wall Street is using “regulatory arbitrage” to break the Volcker Rule
Uploaded by CapitalAccount on Feb 22, 2012
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Well-known analyst Merideth Whitney says the middle class is being “De-Banked” in her view, due to new regulations that go “too far in the other direction” in regulating wall street. But is this really true, or do the new regulations just punish the little guys or the yet-to-be (and maybe never become-at-all financial start-ups) financial services firms at the expense of the big boys on wall street? And speaking of the big boys of wall street, how exactly have they been doing on the latest piece of regulation meant to end proprietary trading by these firms from destabilizing the global financial markets and the global economy? We speak, of course, about the Volker Rule, which is Washington’s attempt to “roll back” some of risky practices embraced by wall-street after the end of Glass-Steagal in the late 90′s. Now, this is just one piece of regulation, but it is a start in a long battle to protect the vast majority of economic participants from having the reckless behavior and risky positions of these too-big-to-fail banks from destroying their financial futures. We speak to two members of “Occupy the SEC” – Alexis Goldstein and Caitlin Kline — who have been working hard to protect you and me from the watering-down efforts that go on behind closed doors once bills have been passed and move back to the agencies to get “fleshed out.” We will ask them about the market-making loopholes (remember, Lloyd Blankfein used this excuse when answering questions about conflicting interests during the financial crisis), hedging, covered funds, Super 23A and much much more.
Also, in the EU, even though bailout is a naughty word they too haven’t found a way to deal with their banking system crisis without one: a bailout. Reuters reports that the EU is struggling to get new financial rules on the books. Why is the transatlantic banking monster so hard to defeat after all? And speaking of the transatlantic connection, the Greek government is racing to meet bailout demands being made by the troika. The country is still in trouble — fitch has cut the country’s credit rating to junk, one notch above default. We’ve heard recent calls to postpone elections and bring in technocratic governments. Looking at history we can see where interest rates went from being priced by the market to being priced by central bankers…are we seeing the same thing now with democracy — where elections are being phased out and decisions are being taken out of the hands of the citizenry entirely and placed into the lap of unelected technocrats? We’ll explain our theory when Demetri Kofinas joins us later in the show.
Iran and War Drums Beating /Gold blasts off/More on Greece/Expect a raid in gold/silver tomorrow
Wednesday, February 22, 2012
2
I was able to write this report at work so I could release this commentary at my normal time slot.
The price of gold rose by $12.20 to finish the trading session at $1770 (comex closing time l:30). Silver finished the day down by 17 cents to $34.24 as the boys were trying their utmost trying to contain gold’s poor cousin from skyrocketing. The price of gold surpassed another of Jim Sinclair’s angels at $1764.00 which generally will be a signal to gold’s parabolic rise.
Gold and silver were held in check for most of the day until the last half hour when the bankers realized that they were in trouble and started to cover their huge amounts of non backed paper supplied in the last two days. Wait until you see the data.
The total gold comex open interest rose by a staggering 16,885 contracts as brave souls entered the market with the hope of securing some metal. The front delivery month of February saw its OI fall by 46 contracts, from 346 to 300. We only had one delivery notice yesterday so again we lost 45 contracts to cash settlements and Blythe’s famous bonus fiat. The estimated volume at the comex today was mediocre at 148,210. The volume yesterday was excellent at 216,846 but in reality that was two days worth of contracts.
The total silver comex OI broke out of its narrow channel rising by 3621 contracts from 106,962 to 110,583. This surely caused some bankers to have frayed nerves. The OI is basis yesterday. You can imagine what it will show tomorrow. The front February month in silver has its OI reduced from 130 to 94 for a loss of 36 contracts. We had 57 delivery notices yesterday so again we gained 21 contracts or 105,000 oz of additional silver standing. All of February Oi results from options exercised by Jan 31.2012 or by put contracts were the option holder put a silver contract to a long who then decided to take delivery. All March options will go off the board this Friday. They will receive a futures March contract and then the decision is to whether to take delivery.
The front delivery month of March saw its OI remain remarkably stable at 29,215 for a loss of 100 contracts. The March contracts goes off the board this Friday but will trade until all longs are satisfied. The estimated volume today was huge at 75,512 with some rollovers. The confirmed volume yesterday was 84,528.
THE NEW NORMAL, PART 2
The Burning Platform
Posted on 22nd February 2012 by AWD in Economy
I lived in Detroit for three years. Well, not really IN Detroit, out in the suburbs, and I moved away 11 years ago, by the grace of God. There is always a lot of talk and writing about Detroit. The downtown was a war zone, even back then. It looked like Beirut. It looked like a war had been fought there. Working in the ER’s, I saw worse carnage than at a MASH unit during the Vietnam War. No human being should have to live in such conditions, or be subject to the terror which is a fact of life in Detroit.
Eleven years later, it’s gotten much, much worse. This article brings the reality of Detroit to full light, and even I was shocked. Just read this article to see what life will be like nationwide before long. Don’t think it will happen to you? Guess again. And this is what’s coming to all cities before long, except it will be worse when the direct-deposit and SNAP benefits stop flowing from Uncle Obama. This is what’s coming to a city near you folks. If Detroit is the future of America, it’s time to hit the road to greener pastures, while we still can.
20 Things We Can Learn About The Future Of America From The Death Of Detroit
Do you want to know what the future of America is going to look like? Just check out what is happening to Detroit. The city of Detroit was once one of the greatest industrial cities in the history of the world, but today it is a rotting, decaying, post-apocalyptic hellhole. Nearly half the men are unemployed, nearly half the population is functionally illiterate, more than half of the children are living in poverty and the city government is drowning in debt. As economic conditions have gotten worse, crime has absolutely exploded. Every single night in Detroit there are frightening confrontations between desperate criminals and exasperated homeowners. Unfortunately, the police force in Detroit has been dramatically reduced in size. When the police in Detroit are called, they often show up very late if they even show up at all. Detroit has become a lawless hellhole where violence is the currency of the streets. If you want to survive in Detroit, you better be ready to fight because there are hordes of desperate criminals that are quite eager to take literally everything that you have got. But don’t look down on Detroit too much, because what is happening in Detroit will soon be happening all over America.
Sean of SGT Report–BrotherJohnF–Chris Duane–Round Table–02-22-2012
February 22, 2012
The Financial Survival Network just reached another milestone; our first three-way round table! Today, Sean of SGTReport.com, Chris Duane a/k/a The Silver Shield of Dont-Tread-On.me and BrotherJohnF of Silver For the People joined us for a discussion about citizen blogging/journalism, their respective accomplishments in the new media, and where they’re each heading. Collectively they’ve gotten over 10 million views and downloads on YouTube and other well known venues.
People are starting to stand up and take notice! Their viewpoints on the dollar, foreign relations, militaristic adventurism, Middle Eastern intervention, and free markets are always certain to be controversial. But, they do also make you think and question what’s really going on with our economy and with the global economies. Their goal is to help people become aware that the current system is not serving anyone’s interest, except the bankers. The system we have in place now is quickly turning us into a nation of debt slaves, whose only purpose it to pay interest and taxes. Clearly, there’s something very dysfunctional and disturbing about contemporary life in America and around the World. Everyday, it seems the world moves closer and closer to the abyss or a dark place from which it can never return.
These three men are trying to help put the brakes on our downward descent, and we wish them great success in their efforts.
Please fill out the subscription box on the right to receive your free Financial Survival Toolkit.
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Negative Salaries, Negative Bailout And Now Negative Gold – Greece Just Became The Bankster’s Paradise
Submitted by Tyler Durden on 02/22/2012 15:57 -0500
While Iceland is now known as the country that is the closest earthly approximation to banker hell, it is safe to say that Greece is the terrestrial equivalent of banker heaven. Because as explained earlier today, the country’s population is about to get a worse deal than your average run of the mill slave – they may get whipped, but at least never have to pay for the privilege, unlike the Greeks. Hence negative salaries. As also explained, the European bailout of Greece, is now formally a Greek bailout of Europe, funded by the country’s already negative primary surplus, or better said – deficit (don’t try to make mathematical sense of that – a scene out of Scanners is guaranteed). Hence, negative bailout. But the piece de resistance, and the reason why Greece is the in situ version of bankster heaven is the news from the NYT that Greece is also about to have negative gold.
Greek Debt Deal Done—Yeah Right
22 February 2012
By Greg Hunter’s USAWatchdog.com
I keep asking myself, when is a deal not a deal? Every time I hear the words “Greek debt deal” or “Greek bailout” in the same sentence, I wonder if, this time, they really have a deal. Yesterday, I was thinking that again when it was announced there was a new Greek debt deal. The headline from Reuters read, “Europe seals new Greek bailout but doubts remain.” My favorite paragraph in the story said, “An opinion poll taken just before the Brussels deal showed that support for the two mainstream parties backing the rescue had fallen to an all-time low while leftist, anti-bailout parties showed gains. Anastasis Chrisopoulos, a 31-year-old Athens taxi driver, saw no reason to cheer the deal. “So what?” he asked. “Things will only get worse. We have reached a point where we’re trying to figure out how to survive just the next day, let alone the next 10 days, the next month, the next year.” (Click here for the complete Reuters story.) There are elections in Greece in April. What do you bet one of the “anti-bailout parties” wins? There may be a deal today, but not in the not-so-distant future.
Gold and silver to be much higher by end of Q1 – Turk
MINEWEB RADIO – GOLD WEEKLY
GoldMoney founder James Turk, believes, while one can’t predict what the catalyst is going to be that will force gold and silver higher, the bull market remains intact.
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Jason Hamlin Says Golden Days Are Ahead–02-22-2012
February 22, 2012
Jason Hamlin of GoldStockBull.com spoke with us yesterday to discuss the prospects for the yellow and shiny metals. Jason sees much smooth sailing ahead, and so do I. While there is a small chance of another pullback in the metals markets, this should be short lived. After the limited duration, the big move should be on. Then we will see that new highs will be tested and new records set. And judging from this week’s action in the precious metals, Jason’s view looks to be the likely scenario.
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The Fear of Gold
Tuesday, February 21, 2012 at 6:32PM
I was on a panel at the recent California Investment Conference in Palm Springs and the question was asked, “What percentage of your portfolio should be in gold bullion?”
The first panelist answered 20%. The second panelist said, up to 30%. Then it came to me.
“I have no problem with someone having 100% of their portfolio in gold,” I stated bluntly. Many in the crowd laughed. Their laughter confused me. What’s so funny about that, I thought?
I went on, “I think it’s weird that people find my answer weird.”
GOLD IS REAL MONEY
After all, we are talking about time tested and true money. The only money that has lasted for thousands of years and is still fully accepted worldwide as a store of wealth. Even Warren Buffet had to recently admit that “Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.”
And that from a man who hates gold the way Whitney Houston fans hate Bobby Brown.
So, by stating that I have no problem with someone having 100% of their portfolio in gold I am making an ultra conservative statement. I am stating that I’d have no problem with someone having their entire portfolio in “cash”. In real money.
What would you rather hold “for eternity”? US dollars? A paper debt obligation of a bankrupt nation state?
The fact that so many found that to be a shocking statement says a lot about where we are in this current process of the collapse of the fiat currency system.
Freedom*
by Simon Black
February 22, 2012
Santiago, Chile
“[T]he more complicated the forms assumed by civilization, the more restricted the freedom of the individual must become.”
Benito Mussolini
Grand Fascist Council Report, 1929
When I was a kid, the morning announcements at my taxpayer-funded public school dragged on for a good 15 or 20 minutes. They announced the birthdays. They told us what was for lunch. For some reason they even told us the weather, as if a bunch of 6-year olds cared what the relative humidity was.
Then we broke out into the propaganda. We recited the Pledge of Allegiance. Then we sang the national anthem. Then we sang America the Beautiful. THEN we sang the state anthem, “Texas our Texas”. I still hear it in my sleep from time to time.
It’s bizarre, when you think about it. Children are indoctrinated from such a young age to subordinate themselves to the ‘republic,’ a system of government. They learn that the state is paramount above all else, and the belief is inculcated at a time when young minds are typically incapable of rational analysis.
It seems difficult to heavily distinguish such practices from those of the Deutsches Jungvolk section of the HJ– the Hitler Youth organization for 10-14 year old boys that instilled loyalty to the Third Reich above all else.
Children learn that the United States stands for liberty… the land of the free. It’s simply not questioned. That’s what they’re told, that’s what they grow up believing. But as Hayek wrote in the early 1940s,
“Freedom and liberty are now words so worn with use and abuse that one must hesitate to employ them to express the ideals for which they [used to stand.]”
‘Freedom’ now comes with all sorts of strings attached, special stipulations. These days, we’re told: “You’re free. Now follow all of these regulations that are interpreted at the exclusive discretion of hundreds of executive agencies under the penalty of imprisonment and/or financial penalties so egregious that you’ll be paying for the rest of your natural life.”
The rule of law no longer exists– not in the United States, not in the western world.
BIX WEIR INTERVIEW: Making Sense of the Nonsensical
I sat down for another interview with Sean at www.SGTReport.com and we discussed some of the more controversial issues swirling around our world these days. Sean is putting up an excellent fight against the “Bad Guys” by spreading the REAL NEWS and I always enjoy speaking with him.
Behind The Fed’s Covert Euro Bailout
Wealth Wire
Posted by Brittany Stepniak
Wednesday, February 22nd, 2012
We recently reported that the Fed was up to something mysterious….
Recent activity has all but confirmed our suspicions: The Fed is “swapping” dollars for euros in a covert method to bailout Europe’s big banks.
According to a former Fed official’s op-ed in the Wall Street Journal, the Federal Reserve is indeed bailing out Europe by operating in the shadows, which is going mostly unnoticed by American citizens…
By participating in a currency swap, the Fed cannot technically be accused of loaning money to the ECB.
Former Vice President of the Federal Reserve bank of Dallas, Gerald O’Driscoll recently reported on the swap-situation in an interview with the Wall Street Journal:
The Fed is using what is termed a “temporary U.S. dollar liquidity swap arrangement” with the European Central Bank (ECB). There are similar arrangements with the central banks of Canada, England, Switzerland and Japan. Simply put, the Fed trades or “swaps” dollars for euros. The Fed is compensated by payment of an interest rate (currently 50 basis points, or one-half of 1%) above the overnight index swap rate. The ECB, which guarantees to return the dollars at an exchange rate fixed at the time the original swap is made, then lends the dollars to European banks of its choosing.
***
The two central banks are engaging in this roundabout procedure because each needs a fig leaf. The Fed was embarrassed by the revelations of its prior largess with foreign banks. It does not want the debt of foreign banks on its books. A currency swap with the ECB is not technically a loan.
Watch this video to see why Mr. O’Driscoll believes this arrangement is wrong for various reasons:
Leeb – Expect $6 per Gallon Gas & Huge Surge in Gold & Silver
King World News
February 22, 2012
Today acclaimed money manager Stephen Leeb told King World News that investors need to prepare for $6 per gallon gasoline, instead of the $5 we are currently seeing. Leeb also said tremendous inflation will cause gold and silver to begin a major surge to the upside which will take both of them to new highs. Leeb is Chairman & Chief Investment Officer of Leeb Capital Management. Here is what he had to say: “Gold rallying is a recognition that virtually every large economy in the world is reflating. It’s a situation where a lot of money is being pumped into the financial system and every country in a race to the bottom with regards to their currencies. Interestingly, gold is moving higher with the yen moving lower. Of course the yen is moving lower because of aggressive Japanese monetary stimulation.”
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