theburningplatform.com / By Jim Quinn / 30th October 2014
Does the U.S. really have 8,133.5 metric tons of PHYSICAL gold?
Why won’t the government allow it to be independently audited?
Where is Germany’s 3,384.2 metric tons? They demanded it back from the U.S. vaults and were told NO.
Gold has been money for centuries. Fiat paper comes and goes and is simply based on the good faith of the country issuing it.
How much faith do you have in your government?
Can you say rehypothecation?
zerohedge.com / by Tyler Durden on 10/30/2014 11:00
There are those, increasingly more of them, including such shocking statist luminaries as Alan Greenspan (the person more responsible for today’s global depression than anyone else) and the Treasury Borrowing Advisory Committee, who are realizing that the old debt=growth, saving=bad, spending=prosperity andinflation=utopia economic paradigm, the one unleashed by John Maynard Keynes, is the primary reason for today’s worldwide economic devastation, a condition where $100 trillion in global debt has brought global growth to a crawl, and which coupled with endless “wealth effect” printing by central banks who have deposited $10 trillion in electronic money at their favorite commercial banks with the explicit instruction to buy spoos, have bet everything on reflating the world out of its debt quagmire, instead having achieved a world that has never been more split between the haves and have nots.
And then there is BusinessWeek, which quite to the contrary, is urging its readers in its cover story, ignore common sense, and do more of the same that has led the world to dead economic end it finds itself in currently. In fact, as NYT’s Binyamin Appelbaum summarizes it best, it calls “the world governments to become the slaves of a defunct economist. “
And spend, spend, spend, preferably on credit.
Because, supposedly, this time the resulting crash from yet another debt-funded binge will be… different?
armstrongeconomics.com / by Martin Armstrong / October 30, 2014
Obama is going down as perhaps the worst President in history. One would think he would be concerned about his personal reputation. Nobody wants him campaigning for them – they call Bill Clinton before Obama. In a rare appearance on the campaign trail on Sunday with a rally to support the Democratic candidate for governor in Maryland, the crowd began to break up and many just walked out while he spoke. Obama’s unpopularity is just amazing. His approval ratings are hovering around record lows and when the economy turns down after 2015.75, there will be a year left for him to play more golf and not much else.
goldbroker.com / by Nick Laird / Oct 30, 2014
Showcasing the Foreign Earmarked Gold & the recent decline in the stocks – presumably heading to Germany.
wallstreetonparade.com / By Pam Martens and Russ Martens / October 30, 2014
Federal Reserve’s FOMC Meeting in March 2014
Back on June 25 of this year, Wall Street On Parade ran the following headline: “BOE’s Carney: Inflated Central Bank Balance Sheet the New Normal; Expect to Hear the Same Conclusion from the U.S. Fed.”
The day before our headline, Bank of England Governor, Mark Carney, had just explained to Parliament why their central bank’s balance sheet, bloated through quantitative easing, was not going to be shrinking anytime soon.
Carney: “…I would define – picking up on what my colleagues have said – pre-crisis position as a position that’s consistent with the normal course of liquidity requirements of the banking system…What has changed, to the good, in terms of the banking system here is that through regulation and supervision we have put much more responsibility on the banks themselves to hold liquidity to manage liquidity shocks. And, as a consequence of that, their demand for reserves can be expected to be higher. The further consequence of that is that the balance sheet of the Bank of England will be larger…”
zerohedge.com / by Tyler Durden on 10/30/2014 11:25
It appears the machines forgot the shift in DST across the pond and started their European close flush a little early. Someone/something decided it was an opportune time to dump thousands of contracts of gold and silver futures this morning – clearly ignoring Alan Greenspan’s advice. Gold ETF holdings are now back at levels first seen in April 2009. Gold’s break below $1,200 likely brought some momentum chasers but Silver is in freefall, down over 5% and back to Feb 2010 lows. WTI Crude also broke below the crucial $81 level…
caseyresearch.com / Chuck Butler / October 30, 2014
In This Issue.
* Currencies get whacked hard yesterday.
* Fed adds a few words that gets the dollar bug excited!
* RBNZ takes opportunity to diss kiwi!
* Greenspan returns to his Gold Bug roots!
And Now. Today’s A Pfennig For Your Thoughts.
Brazil Gets Back To The Hiking Rates! .
Good Day!… And a Tub Thumpin’ Thursday to you! I’m not on the Tub Thumpin’ bus this morning, as yesterday was not a good one, and I’m waiting to see what today will bring. Congratulations to the S.F. Giants, who won the World Series Game 7 and therefore are Series champions for 2014. Their 3rd championship in 5 years. WOW! Talk about a dynasty! The Giants have some catching up to do to reach the same number of championships as my beloved Cardinals, but they certainly are the cat’s meow in today’s baseball world!
Well, the FOMC sure threw a cat among the pigeons yesterday, choosing their words carefully, they said what I thought they would say, but added a few extras, and it was those few extras that got the currencies dumped into a boat and sold down the river. It was ugly, folks. This morning, most currencies are sitting at least 1-cent lower than there were yesterday morning. I kept saying that it was interesting that the currencies were rallying this week ahead of the FOMC, I guess it was a good thing they did!
So, what did the Fed say at the FOMC that got the dollar bugs all lathered up? Well, it all centered around when the Fed is forecasting interest rates will rise. And while they kept their phrase, “for a considerable time”, they also mentioned by the middle of next year, and brother that got the dollar bugs whooping and a hollering, running around like someone just turned the lights on, and buying dollars left and right. I know that description might be ugly, but that’s just what the trading looked like yesterday afternoon.
I decided yesterday, to stay awake for the announcement, and see what happens afterwards, and then I wished I hadn’t! But the cows were out of the barn at that point, no sense in attempting to grad a nap then. The selling in the currencies and metals wasn’t just confined to yesterday afternoon either. Overnight and in the morning session the selling has continued, albeit not as hot and heavy as yesterday afternoon, but continuing nonetheless.
So, while we’re talking about the Fed and the FOMC meeting yesterday, where they announced the end of Quantitative Easing / QE, I might as well get this off my chest.
TruthNeverTold, Published on Oct 30, 2014
Total credit market debt to GDP (when using nominal GDP one arrives at the 334% mentioned by Dr. Hunt – which is actually the more pertinent ratio, but this chart will do for long term trend illustration purposes), via Saint Louis Federal Reserve Research
acting-man.com / By Bill Bonner / October 30, 2014
QE, we hardly knew ye …
Hang the black crepe. Get out the whiskey. Say goodbye. And try to keep the tears from your eyes.
The Dow rose back above 17,000 points on Tuesday, near its all-time high. Higher stock prices should settle nerves at the Fed’s FOMC meeting. It should leave the central bankers free to let their emergency bond-buying program die in peace [indeed, it did die in peace, ed.].
The Financial Times announced the end even before it happened. On Monday, its headline read: “RIP QE: The quiet death of a radical US monetary policy.”
But the Fed has to be careful. If it announces that QE is truly dead, it is likely to set off some untoward scenes of wailing and keening in the stock market. Investors will feel a deep sense of loss.
Is the Party Over?
The trouble with death is it is permanent. The dead stay dead. And if investors believe QE will never rise again, they may be disheartened. Or even feel betrayed.
Remember, the central bank was the life of the party. It was central banks that brought the booze… leading to the big run-up in US stock prices over the last five years. If QE is history, most likely so is the bull market on Wall Street. The party is over. Stock prices are likely to put on their coats and hats and go back whence they came.
The Fed has already given out the word that, although QE may be breathing its last breath, its offspring will live on. The Fed will not be selling its roughly $4.5 trillion portfolio of bonds… or even allowing it to expire of natural causes.
In the normal course of events, these bonds would mature and then – as all of us will – disappear. But Janet Yellen tells us it will be reinvesting the funds from maturing bonds in new issues. In other words, it will continue to soak up new bonds, helping to keep a lid on yields. We doubt that will be enough…
goldmoney.com / By Kelly-Ann Kearsey / 30 October 2014
Obviously the big news of the week for the bullion markets came from the Federal Reserve which ended its quantitative easing bond buying and was surprisingly upbeat about the economy.
It wasn’t just gold which suffered, silver also dropped heavily, but GoldMoney’s Dealing Manager, Kelly-Ann Kearsey said the online bullion dealers’ customers were more upbeat about the industrial metal, ‘Whilst we’ve see net gold selling among our customers, we have concurrently seen net buying of silver. It’s not been everyone’s preference as on the main markets it’s lost fairly heavily, but it’s certainly caught the attention of some of our customers and kept silver’s trading with us in the positive.’
zerohedge.com / by Tyler Durden / 10/30/2014 10:09
First it was Libor, then gold, then dark pools, now for those who want a glimpse into just how for years bank FX traders, whether belonging to “The Cartel” or “The Bandits Club” or otherwise, colluded on trades around the daily fix, breached fiduciary duty, and generally engaged in illegal rigging of the world’s largest market by volume, Bloomberg News had received a transcript of the instant-messages by various FX traders currently being investgated for FX rigging.
As Bloomberg news reports, it has “reviewed the transcript of a conversation that spanned about 40 minutes on the condition that neither the traders nor clients named in them would be identified. Another dealer from Barclays and two from Zurich-based UBS AG were logged onto the thread at various points during the chat. The exchanges are the sort of discussions banks are trying to end by banning group chats involving employees at other companies.”
jsnip4, Published on Oct 30, 2014
gold-eagle.com / By Mary Anne & Pamela Aden / October 30, 2014
U.S. dollar has become the world’s safe haven. This has driven the dollar higher. And the dollar’s up-move has kept downward pressure on gold.
Taking a look at the big picture, however, you’ll see this relationship more clearly.
Chart 1 shows gold and the dollar since 1972 when their relationship really started. Note, they tend to move in opposite directions, and the major trends are up for gold and down for the dollar.
BUT, there are contra-trends, which is where we are today. The red arrows show the two times, in 1980 and 1995, when gold fell and the dollar rose for about five years.
The current dollar rise and gold decline have been going on since 2011. It’s been three years in the making. And the sharp dollar jump in recent months has reinforced this contra-trend. This was further emphasized today when the Fed halted its QE stimulus program.
So will this contra-trend last another year or two? It could. Could the dollar rise more than gold falls? Yes, it certainly could. But one thing is clear, the U.S. cannot bear a consistently long lasting strong dollar.
In fact, no country wants a strong currency…and the U.S. is not an exception. This tells us the dollar could turn down sooner rather than later. Perhaps next year will likely be the time for a gold turnaround. In any event, once the dollar resumes its decline, it’ll be very bullish for gold.
blog.milesfranklin.com / Bill Holter / October 30th, 2014
In part one, I recounted Alan Greenspan’s one on one interview with Gary Alexander. Later in the day Saturday, Alan Greenspan was part of a round table with Porter Stansberry and Dr. Marc Faber, moderated by Mr. Alexander. While both Stansberry and Faber had a couple of good “zingers” for Mr. Greenspan early on and they both had good points and additions to the discussion, I want to concentrate on what Alan Greenspan had to say. Before getting to part 2, I do want to make one correction to yesterday’s piece. I heard Mr. Greenspan’s reply to the question “where will interest rates and gold be five years from now?” as “higher…considerably.” I have been corrected several times, his exact word was “measurably,” I apologize for the misquote.
If you remember, in part one Alan Greenspan told several white lies. One regarding the leasing of gold by central banks, the Fed never speaks with the Treasury regarding debt/deficit levels, while another was diverting the blame for the housing crisis to Fannie and Freddie amongst other factors…but not the Fed. The key from GATA and the gold community’s point of view was Greenspan’s denial of gold leasing and the question “do you recall testifying before Congress where you stated central banks stand ready to lease gold in increasing quantities should the price of gold rise?” This question by Gary Alexander was flubbed miserably and we may never get this opportunity again, I will finish with what and “how” I think it happened but first I’d like to lay out what the former chairman had to say.
While Mr. Greenspan spoke of many topics, there were too many and some even irrelevant in my opinion to recount them all, the following is what I found important. The talk began with the topic being “the savings rate.” Alan Greenspan went back to his old spiel of “productivity” and said that the system of entitlements was crowding out savings. He used an equation of “more benefits=less growth” and there is no way out or around this, we have been eating our seed corn. I agree as it is the common sense which is so “un” common in Washington but I guess one must leave the beltway before it hits them in the forehead?
theaureport.com / Karen Roche / 10/29/14
Between a rising U.S. Dollar Index and black swan events around the world, it’s looking like bunker time for Bob Moriarty. In his latest interview with The Gold Report, the 321gold.com founder delivers a frank overview of U.S. international policy and lambasts commentators who look to their tea leaves in search of the next market moves. But it’s not all gloom and doom: Moriarty also discusses metals companies with “no-lose deals,” where resource investors can take advantage of more than favorable odds.
The Gold Report: Bob, in our last interview in February, we had currency devaluation in Argentina and Venezuela. We had interest rate hikes in Turkey and South America. We had a cotton and federal bond-buying program. Just eight months later in October, we’ve got Ebola. We’ve got ISIS. We’ve got Russia annexing Crimea. We’ve got a rising U.S. Dollar Index. We’ve got pullbacks in gold, silver and pretty much all commodity prices. With all this news, what, in your view, should people really be focusing in on?
Bob Moriarty: There is a flock of black swans overhead, any one of which could be catastrophic. The fundamental problems with the world’s debt crisis and banking crisis have never been solved. The fundamental issues with the euro have never been solved. The world is a lot closer to the edge of the cliff today than it was back in February.
About ISIS, I think I was six years old when my parents pointed out a hornet’s nest. They said, “Whatever you do, don’t swat the hornets’ nest.” Of course, being six years old, I took stick and went up there and swatted the hornets’ nest, which really pissed off the hornets. I learned my lesson.
We swatted the hornets’ nest when we invaded Iraq and Afghanistan. What we did is we empowered every religious fruitcake in the world. We said, “Okay, here’s your gun, go shoot somebody. We’ll plant flowers.” We are reaping what we sowed. What we need to do is leave them to their own devices and let them figure out what they want to do. It’s our presence in the Middle East that is creating a problem.
TGR: Will stepping back allow the Middle East to heal itself, or will there be continued civil wars that threaten the world?
BM: We are the catalyst in the Middle East. We have been the catalyst under the theory that we are the world’s policemen and that we’re better and smarter than everybody else and rich enough to afford to fight war after war. None of those beliefs are true. The idea that America is exceptional is hogwash. We’re not smarter. We’re not better. We’re certainly not effective policemen.
The Congress of the United States has been bought and paid for by special interest groups: part of it is Wall Street, part of it is the banks and part of it is Israel. We’re just trying to do things that we can’t do. What the U.S. needs to do is mind its own business.
paulcraigroberts.org / Paul Craig Roberts / October 29, 2014
The federal government has announced that thousands of additional US soldiers are being sent to Liberia. General Gary Volesky said the troops would “stamp out” ebola.
The official story is that combat troops are being sent to build treatment structures for those infected with ebola.
Why combat troops? Why not send a construction outfit such as an engineer battalion if it has to be military? Why not do what the government usually does and contract with a construction company to build the treatment units? “Additional thousands of troops” results in a very large inexperienced construction crew for 17 treatment units. It doesn’t make sense.
Stories that don’t make sense and that are not explained naturally arouse suspicions, such as: Are US soldiers being used to test ebola vaccines and cures, or more darkly are they being used to bring more ebola back to the US?
I understand why people ask these questions. The fact that they will receive no investigative answer will deepen suspicions.
Uninformed and gullible Americans will respond: “The US government would never use its own soldiers and its own citizens as guinea pigs.” Before making a fool of yourself, take a moment to recall the many experiments the US government has conducted on American soldiers and citizens. For example, search online for “unethical human experimentation in the United States” or “human radiation experiments,” and you will find that federal agencies such as the Department of Defense and Atomic Energy Commission have: exposed US soldiers and prisoners to high levels of radiation; irradiated the testicles of males and tested for birth defects (high rate resulted); irradiated the heads of children; fed radioactive material to mentally disabled children.
charleshughsmith.blogspot.com / CHARLES HUGH SMITH / OCTOBER 30, 2014
We’re being hit with a double-whammy: Wages are under deflationary pressure, and almost everything else is exposed to inflationary pressure.
As correspondent Mark G. observed in Globalization = Permanent Instability, it’s impossible to understand inflation and deflation now except in a global context.
Now that prices for commodities such as oil and grain are set on the global market, local surpluses don’t push prices down.
If North America has record harvests of grain, on a national basis we’d expect prices to fall as local supply exceeds local demand.
But since grain is tradable
, i.e. it can be shipped to other markets where demand and thus prices are much higher, the price in North America reflects supply and demand everywhere on the planet, not just in North America.
If we put ourselves in the shoes of a farmer or grain wholesaler, this is a boon: why sell your product for 1X locally, when it fetches 2X in other countries? You’d be crazy not to put it on a boat and get double the price elsewhere.
As the share of the economy exposed to digitization increases, so does the share of work that can be done anywhere on the planet.
When work is digitized, it is effectively commoditized
, meaning that it no longer matters who performs the work or where they live.
Paul Sandhu, Published on Oct 30, 2014
Dr. Sircus, a prolific author and researcher joins me to discuss the alleged Ebola outbreak and how to take charge of your own health so that you are not susceptible to common diseases such as cancer and kidney disease, or to infectious outbreaks such as Ebola or even to the seasonal flu.
thecommonsenseshow.com / by Dave Hodges / October 30, 2014
For a number of years, the topic of FEMA Camps (i.e. American concentration camps) have been rumored to exist. Jesse Ventura, on his show, Conspiracy Theory, revealed to the public the existence of FEMA Camps in such a dramatic fashion that the episode has been banned from public viewing.
Through the years, there has been much speculation about the existence of FEMA Camps and their true purpose. Recent events surrounding the recent Ebola crisis, is making it clear that the camps, as well as other co-opted public facilities (e.g. stadiums, malls, etc.) will be used to enforce medical martial law for both the sick as well as anyone else who the government determines is a (health) risk to the well-being of the public. Am I saying that the camps will be used to house political dissidents. This is undeniably true. This article traces the inception of FEMA camps to the present and intended purpose. This article will also expose the fact that it will not just be Ebola victims going to these camps where there will be medical facilities.
REX 84 is the “granddaddy” of the modern era FEMA camp legislation. When the REX 84 FEMA Camp program was created by people such as Lt. Col. Oliver North, who wasboth National Security Council White House Aide, and NSC liaison to the Federal Emergency Management Agency (FEMA), and John Brinkerhoff, the deputy director of “national preparedness” programs for FEMA’s role in the creation of the camps, our ultimate fate for future generations of Americans was sealed.
The existence of the Rex 84 plan was first revealed during the Iran-Contra Hearings in 1987, and subsequently reported by the Miami Herald on July 5, 1987.
” These camps are to be operated by FEMA should martial law need to be implemented in the United States and all it would take is a presidential signature on a proclamation and the attorney general’s signature on a warrant to which a list of names is attached.”
“The (FEMA) camps all have railroad facilities as well as roads leading to and from the detention facilities. Many also have an airport nearby. The majority of the camps can house a population of 20,000 prisoners.
Currently, the largest of these facilities is just outside of Fairbanks, Alaska. The Alaskan facility is a massive mental health facility and can hold thousands of people”.
zerohedge.com / by Tyler Durden / 10/30/2014 11:00
There are those, increasingly more of them, including such shocking statist luminaries as Alan Greenspan (the person more responsible for today’s global depression than anyone else) and theTreasury Borrowing Advisory Committee, who are realizing that the old debt=growth, saving=bad, spending=prosperity and inflation=utopia economic paradigm, the one unleashed by John Maynard Keynes, is the primary reason for today’s worldwide economic devastation, a condition where $100 trillion in global debt has brought global growth to a crawl, and which coupled with endless “wealth effect” printing by central banks who have deposited $10 trillion in electronic money at their favorite commercial banks with the explicit instruction to buy spoos, have bet everything on reflating the world out of its debt quagmire, instead having achieved a world that has never been more split between the haves and have nots.
And then there is BusinessWeek, which quite to the contrary, is urging its readers in its cover story, ignore common sense, and do more of the same that has led the world to dead economic end it finds itself in currently. In fact, it is, in the words of NYT’s Binyamin Appelbaum, calling the world governments to become the slaves of a defunct economist. And spend, spend, spend, preferably on credit. Because, supposedly, this time the resulting crash from yet another debt-funded binge will be… different?