$3,500 gold a SURE thingie ~ HS says, "$4,500.00" coming

[HistoryStudent]

July 3, 2012, at 5:16 pm
by Jim Sinclair in the category General Editorial | Print This Post Print This Post | Email This Post Email This Post

My Dear Friends,

Gold will go to and above $3500. This is the most important message I have sent you since 2001.

There are very few of us dynamic thinkers that see everything as a trend constantly in motion. Anyone can be a static thinker, quoting recent economic figures or news headline (MSM), and coming up with a usually wrong opinion.

The change today is that the "Rig Is Up."

The Bank of England turning their backs on Barclays, the company who did their bidding, will be the event in time marking the trend change.

Many of us in our areas of activity will successfully fight the Riggers. The many complaints that so many of you kindly sent in to fight manipulation released the Kraken in me.

The Kraken is back in its cage where it belongs. The paper trail is there. The worm has turned. Even more importantly is that this fight in the $1540 gold price area was not for regaining the old high in gold. The six attempts to kill gold, supported by some gold writers looking for favors from the riggers was a now failed attempt to keep gold from trading above $3500.

The battle to stop gold has been lost.

The start, like all starts towards the old high and well above, should be slow with more unfolding drama. It will build on itself but gold will trade at and above $3500. I am now as certain of this as I was over ten years ago when I told you gold was headed for $1650. I knew that as fact and to me from $248 gold was trading at $1650.

My job now is to define gold’s full valuation for you when it occurs. The timing is no less than one year from now to a maximum of three years from now. I believe I will be able to do that for you.

This is the most important message I have written you since early in 2001. I write this with total intellectual and spiritual certainty.

Respectfully,
Jim

***************************************

[andial]

I still don't get this Barclays rigging LIBOR rates story. I thought the fed and central banks in general rig the rates. How can you rig a rig? Serious question.

[Mr Paradise]

Let's get past $1700 before we shoot for the moon.

[Chester-Copperpot]

HS you've posted a lot of these articles from these dingbats, claiming "to the moon". Jim Sinclair on the other hand is someone I respect, and listen to when he speaks. Will be interesting to see what happens. Hopefully he is correct.

[HistoryStudent]

http://www.youtube.com/watch?v=i33XhwSzPmc

Yeah I know but look at the mess...


The Bank Of England Made Me Do It
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 10:29 -0400


Bank of England

Barclays

Central Banks

LIBOR

None



Wonder who was pushing Barclays to manipulate its rate? Why none other than the English Fed. From BBG:

BARCLAYS SAYS BANK OF ENGLAND CALLED ON OCT. 29, 2008 ON LIBOR
BARCLAYS SAYS DIAMOND MADE NOTE OF CALL
BARCLAYS SAYS DIAMOND RECEIVED CALL FROM PAUL TUCKER
BARCLAYS SAYS TUCKER SAID `CERTAIN' BARCLAYS DIDN'T NEED ADVICE
BARCLAYS SAYS TUCKER SAID DIDN'T ALWAYS NEED TO BE SO HIGH (Supposedly LIBOR)
BARCLAYS PROVIDES COPY OF DIAMOND'S CALL NOTE
BARCLAYS SAYS DIAMOND DIDN'T BELIEVE HE HAD GOT INSTRUCTION
BARCLAYS SAYS DEL MISSIER CONCLUDED INSTRUCTION HAD BEEN GIVEN
BARCLAYS SAYS DEL MISSIER TOLD RATE SETTERS TO LOWER RATES

In other words, a central banks was directly and indirectly involved in manipulating interest rates. Say it isn't so. Fast forward two months when the BOE's Tucker testifies that the Chairsatan made him do it.
And below is the "note"

end


Like I said, the finger is pointing to the Fed with respect to the Libor lie.
There is no question that the gold suppression scheme is critical in this mess because the cost component of the lease is libor.

(courtesy zero hedge)




And Now The Fed Gets Dragged Into LiEborgate
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 15:05 -0400


Bank of England

Barclays

BOE

Federal Reserve

Goldman Sachs

goldman sachs

Lehman

LIBOR

Mervyn King
Monetary Policy



As was first reported two days ago, and confirmed today, Barclays' natural response to allegations it single-handedly manipulated the interest rate complex for up to $500 trillion notional in IR-sensitive swaps and other products (it didn't - everyone else did it too), was to drag everyone into the scandal, starting off with the Bank of England (and about to drag Whitehall into it too), and specifically the man who was next in line for governorship of the English Central Bank: Paul Tucker. What does this mean? Well, as we suggested also two days ago, now that the natural succession path at the BOE has been terminally derailed, it brings up those two other gentlemen already brought up previously as potential future heads of the BOE, both of whom just happened to work, or still do, at... Goldman Sachs: Canada's Mark Carney or Goldman's Jim O'Neil. Granted both have denied press speculation they will replace Mervyn King, but it's not like it would be the first time a banker lied to anyone now, would it (and makes one wonder if this whole affair was not merely orchestrated by the Squid from the get go... but no, that would be a 'conspiracy theory'.) Yet the fact that Goldman is hell bent on global domination by stretching its tentacles into every monetary policy administration is no secret: it is only a matter of time before GS also runs the English CTRL-P macros. More interesting is that in addition to the BOE, Barclays today also dragged America's very own Federal Reserve into the fray.
From MarketWatch:

Barclays also said in the document that the lender believed other banks were making Libor submissions that were too low during the credit crunch. “The evidence shows that the intent was to protect Barclays from the unfounded negative perceptions by bringing Barclays Libor quotes closer to the pack but not to affect the ultimate rate,” the bank said.

Barclays also cited subsequent research by the New York Federal Reserve staff members that, according to the lender, concluded that banks’ Libor quotes were systematically below their borrowing rates by 39 basis points after the Lehman bankruptcy. “Barclays own submissions for tenors of 1 month to 1 year Libor were higher than actual Barclays trades on 97% of the occasions when Barclays had actual trades during the financial crisis,” the lender said.

Translating the bolded: the Fed knew all along that Barclays self-reported levels were impossible. And did nothing. Which of course was not an issue until 2 days ago. Now that heads are rolling, it is.
So we wonder: will the captured and corrupt congressional critters even pretend to have the guts to escalate LiEborgate on US soil, where the real bodies are buried, or will everyone continue to tiptoe around the issue, hoping it just blows off on its own? If the latter, look for many new and exciting$0.99 apps to hit the iTunes store in the next 12-24 hours. After all must keep the fat, lazy, easily distracted muppets, occupied with cool retina displays and even cooler games where stuff happens fast without draining the battery for hours.
end


The first section of his commentary is very important as he again points out the balance sheet of sovereigns is extremely faulty.

The right hand side does not include many derivatives and guarantees
that the state has so encumbered the nation. The total debt of the nation is much higher.

The left hand side does not list any of the contingent liabilities of the state and as such its numbers are also faulty.

So when viewing a debt to GDP number, please remember to use the proper liabilities and encumbrances on the state.

(courtesy Mark Grant/Out of the Box andOnto Wall Street)


Secrets Of The Trade
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 09:03 -0400


Apple

Bond

European Union

Greece

Gross Domestic Product

Ireland

Portugal

Reality

The Onion



Submitted by Mark Grant, author of Out of the Box
The Balance Sheets
After almost four decades on Wall Street I believe I can read and comprehend a balance sheet. In my experience when I have studied one and then found the numbers to be inaccurate I back-up from any investment like a man running from flowing lava. If the numbers are not real then I want nothing to do with whoever represented them to me. If someone is going to play funny numbers with the state of their company then they will do other things that are not on the up and up as well.
In America we have certain laws about these things. If GE or IBM has guaranteed something and it is not on their balance sheet then it is Fraud and litigation may be pursued both criminally and civilly. Then if the company is guilty of fraud the CEO and the CFO can find themselves in jail. They also have similar laws in Europe but they are not applied to sovereign nations and often times not to banks in Europe. Much more so than in America; politics is above the law in Europe. It is not necessary to argue about this or to assess their motives or even to take a particular ethical position; it is just the way of it.
When we receive the official debt to GDP ratios for any country in the European Union they are inaccurate and inaccurate as a matter of official European policy as enumerated in the documentation of the EU’s official statistic agency, Eurostat. All of the nations in the European Union do not count derivatives, sovereign guaranteed bank bonds, sovereign guaranteed corporate bonds, sovereign guaranteed regional debt or any other contingent liabilities. While I note that this would be totally illegal for any American corporation; this is the way numbers are counted in Europe. I take no ethical stand here but just point out the truth of it so that judgments can be made based upon complete information and so that the debt to GDP ratios are not taken as Gospel when handed out by Europe.
The right hand side of the balance sheets is not all of it however. When the European Union counts up the left hand side of a balance sheet it is also inaccurate. Here the promises to pay, the contingent assets such as the Stabilization Funds are counted as if they are fully funded. The EFSF and the perhaps coming ESM are not funded and have never been funded and money only is sent by the nations in Europe as needed such as for Greece, Ireland, Portugal and now Cyprus and Spain. The Europeans proclaim in loud rhetoric that they have these firewall funds in the great hope that speculators will not become involved with their bond markets because of their much shouted wall of Euros which, not only is obviously untrue, but it also obviously did not work as a grand scheme. In other words Europe counts their promises to fund as real assets and does not count what they have actually guaranteed as guarantees, so in their rather arcane world, they are not liabilities. Further, as we have seen in a number of European nations, if the government loans money to some bank or regional government then it is not counted as a loan and applied to the liabilities of the sovereign but it is categorized as an “investment” and placed upon the left hand side of the balance sheet as an asset. Now they can do anything they like, of course, and my musing will change absolutely nothing in the way they conduct their business but I can point out and I do point out that the European balance sheets are inaccurate which is one reason why I am unwilling to suggest that money be put in these enterprises.
I don’t know, in my rather straight down the middle Kansas City mind I prefer a reality where one plus one is two and not where some European auditor, when asked about the sum of one plus one says, “What number would you like?” This was the way of it in “Alice in Wonderland” of course as the meaning of the word was determined by the speaker but this is not a wise path to be followed by an investor. Recently I wrote about Firewalls and the hocus pocus of their being touted as the cure-all for Europe. Europe missed the train on this one altogether as no amount of money, either pledged or funded, will do one thing to help the worsening financial crisis of the countries in Europe. You may think of the nations of Europe as horses in a corral. What is the value of a bigger and bigger fence that surrounds them if the horses are full of cancer? The fence, of whatever size, does nothing and I mean nothing to help the sickness of the horses. Europe is battling with windmills when they should be addressing the financial health of each country. “The horses are sick,” I say, “forget fiddling with the fence.”
As each month passes and financial projections are proved to be whims of fantasy and as people and institutions alike look at the balance sheets in Europe with an ever growing nauseous feeling there are real consequences for how Europe has behaved. It is not the speculators that are hurting Europe but Europe itself as real money investors, in scores, are departing the scene for other pastures due to Europe’s bad manners. My commentary goes to some 5,000 large financial institutions in forty-eight countries and I can report with absolute certainty that many, many major money managers, of all types, are just not willing to invest money in Europe anymore and while the governments of Europe can pressure and “suggest” that their own institutions keep up the flow of cash into European investments and auctions these same money managers, in the end, are accountable to their clients and consequently the numbers begin to look quite dismal as yields back up and as European equities seriously decline. Given the massive amount of money that needs to be raised during the next twenty-four months in Europe we are going to see great difficulties in funding and the Europeans will have no one to blame but themselves when the capital does not show up!
July 4 in America
This is our Independence Day of course. We have forgiven the Brits long ago and no grudge is held and so much time has passed that we do not even mention them in our celebrations. I am reluctant to admit it but many Americans may not even know who we are independent from but that is the way of it in myopic America. I do have worries about many of my friends on Wall Street on this day however as this is the day of the Great Grill Off in America. Sad but true that while Wall Street is full of many agile minds that the dexterity of our bodies has not kept up as we spend the day sitting behind desks and staring at screens. Consequently I have turned to the Wizard for some help.
First the attire must be correct. Do not head out to your grill in shorts. It may be warm or even hot where you are but if you are wearing shorts you will get scalding grease on your legs as you try to impress family and friends with your manly grilling skills and the result will not be good. People are not impressed when their host needs to be rushed off to the hospital with third degree burns or when he goes up in flames in the middle of the cocktail hour. The fireworks come later in the evening and, in any event, they are not you.
So no shorts and then your shirt must be black or navy blue perhaps. You will inevitably get grease or the marinade all over your shirt and you will look like a dork if your shirt is some lighter shade. Your wife or girlfriend will frown at you using that grimace that only women can manage when the man they are with looks like a dork and so I am trying to help you avoid this situation. There is no need to look like a sloppy mess in public and this can be avoided with the right attire.
Next you will take the meat out of the refrigerator at about 10:00 A.M. in the morning. You will leave it out and not put it back in and yes I know that your mother told you that you would die from salmonella poisoning if you did this but mom was not correct about this one item. You may recall that restaurants tout their “dry aging” and this means leaving the meat out of the fridge so that the pores open up because they close up when cold. Just trust me here; you will not die if you follow my advice and your family will be just fine.
Now if you want to be the great July 4 Hero and Master Chef I am going to share the Wizard’s secret since 1776 recipe for July 4 success. You will go to the best grocery store that is available and have the meat man, he is also called a butcher but you may not know this, cut you “the first five ribs of the Prime Rib.” Now write this down because you will be thinking about your portfolio and will not remember it or type it in your iPhone so you can play it back later. Having accomplished this goal you will also need some things to help you be the greatest griller since the Indians did Thanksgiving. You must buy a Taylor meat thermometer because you can read it and it has a red line that you can see through the haze and the other thermometers are of lesser quality so do not be cheap and get the “It’s just heat” one or something.
Then go to the spice isle. It is where they have all of those little bottles that your wife fusses around with and they are also in that silly affair that spins around in your kitchen if you bump into it. You will need “Kitchen Bouquet,” garlic powder, Lawry’s seasoning salt, onion powder and paprika. Next wander around and find a bag of wood ships, Hickory or Apple Wood will do. Then go to the cookware isle and buy a large tin pan that can be thrown away because, if not, your wife/girlfriend will not be friendly with you when she has to clean it as you say, “I cooked and cleaning up is for you and it is only fair” which is what goes on in America on July 4. Also buy a “baster” and make sure that the basting part is metal and not plastic as scorched platic on your Prime Rib will not be appreciated by any of your guests. So now you are armed with the tools of the trade and home you go with the Prime Rib.
So it is 10:00 and you are in jeans and a back polo shirt and let the celebration begin. First get an electric knife, and try not to cut off your fingers please, and “score” the top of the Prime Rib. Now this is not like “score” at the game or “score” with your date when you were younger but this means to cut the top fat on the Prime Rib into squares. You can manage this; I have great faith in you and it is easier to do when you first take the Prime Rib out of the fridge. If you screwed up and are taking it out of the freezer then you will have to go back to the store and start all over as frozen Prime Rib just will not do; not do at all.
So the meat is scored and then you take the Kitchen Bouquet and slather it all over the meat. It is a messy affair and paper towels need to be at hand but this is the base for the marinade. Next you liberally toss on the Lawry’s, the garlic powder and the onion powder in no particular order. The last ingredient is then the paprika and then you put the rib roast in the tin foil pan and you leave it sitting out for the rest of the day and far enough in on the counter so that Fido does not claim it for himself and spoil the whole affair. You may also, at this point, take the Taylor meat thermometer and you place it in the thickest part of the roast making sure not to touch any bones which will give you a very inaccurate reading if you do.
Around two hours before you want to eat you must turn on the grill. Meat does not cook on a cold grill and even if you are a contrarian by nature I assure that this ploy will not work. So fifteen minutes goes by, the grill has been turned on and the little dial, yes I know it is not a smart dial, Apple does not make these gizmos, says 325-350 degrees and you are ready to begin. You take the Prime Rib, still nesting inside the tin pan, and you place it on the grill. You then liberally toss around some of the wood chips that have been soaking in a ceramic or metal bowl for the last hour or so and scatter them about on the grill. Then you close the cover and go have a drink or two because the roast needs no attendance for the next forty-five minutes. Then every one-half hour you go check on the meat, look at the thermometer because we do not have self-turning off thermometers yet and baste the meat each time you check on it in its own juices. This means using the baster to extract the juices from the pan and squirt it here and there on the Prime Rib while making every effort to keep it off of yourself. You will also sprinkle some more of the wood chips around because it flavors the meat. The somewhere around two hours after you first put the meat on the grill the thermometer will read “Beef Rare” which is when you take it off of the grill if you want your meat to be medium-rare. Yes, I know there is a trick here and you will be concerned that the meat will be too rare but this will not be the case as the Prime Rib continues to cook when you take it off the grill.
So you have basted and wood chipped and the meat thermometer says “Rare” and off comes the Prime Rib and back into the kitchen and please do not forget to turn off the grill as house fires are unwelcome on July 4 and the fire department is busy attending to the idiots that did not follow the Wizard’s advice. Then have another drink, do not get drunk however as it is so unseemly, and wait about fifteen minutes before you cut the meat. After fifteen minutes you take the Prime Rib out of the tin pan, very difficult to cut it in the tin pan you know and place it upon a wooden platter where you will cut it. I suggest the electric knife again though the more macho of you may prefer a regular knife which works better if it is serrated. If you do not know the meaning of this word please ask your wife/girlfriend and she will explain it to you. Slice it as thinly as you can, after the drinks you have swilled, and serve it along with whatever else you have made on a nice platter remembering, like with your clients, that presentation is an important part of the affair and it will be the same with your guests who will “ooh” you and “aah” you for being the Master of the Grilling Universe. You can serve it with corn on the cob and a Caesar salad or potatoes or creamed spinach or whatever else you can manage.
Finally, keep this in mind; you are host. You grilled the dinner. When you are hosting it may be the fireworks that get lit; but not you.

end

The German economy is now sputtering and as such cannot possibly lend money to the rest of Europe.
The following der Spiegel commentary is very important:

(courtesy zero hedge/der Spiegel)



Germany Rumbling As Spiegel Leads With "Euro Endangers German Economy"
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 08:02 -0400


Commercial Real Estate

European Union

Germany

Rating Agencies

Ray Dalio

Real estate

Sovereign Debt
Unemployment



Objective analysis, or media spin to gauge popular reaction to Plan Z? Whatever it is, today's staff lead article in the English section of Spiegel has a piece that will likely raise more than a few eyebrows: "The common currency union was supposed to benefit the economy of the entire European Union. Now that the euro is struggling, however, it is bringing growth down with it. Germany's economy, once seemingly immune to the crisis, is now facing mounting difficulties."
From Spiegel:

When the board of Commerzbank met last Tuesday, Stefan Otto was supposed to make an appearance. The chairman of Deutsche Schiffsbank, a Commerzbank subsidiary based in Hamburg and focused on the shipping industry, had been summoned to Frankfurt to present the bank's financial results. But the presentation was cancelled; Commerzbank had no need for the numbers, having previously decided it no longer wanted anything to do with German shipping.

The executive board of Deutsche Schiffsbank was not notified in advance of the parent company's reversal. The supervisory board was also taken by surprise. Only three months earlier, Commerzbank CEO Martin Blessing had declared the financing of ships and commercial real estate to be part of the bank's core business. And although it was expected to shrink, Germany's second-largest bank intended to create a separate segment for the business.

But the executives had underestimated the risks that the European sovereign debt crisis presents to Commerzbank, and how much capital the ship and commercial real estate business ties up. Now Blessing has slammed on the brakes. Deutsche Schiffsbank Chairman Otto characterized the parent company's about-face as the "decision of a cautious businessman and not of a skydiver."

Commerzbank has recently made a huge effort to satisfy and even exceed the capital requirements set by the European Banking Authority (EBA). But if the euro crisis worsens, new gaps could soon open up, say banking industry insiders.

In Spain alone, Commerzbank is exposed to the tune of €14.2 billion ($17.9 billion) via investments in banks, companies and the government. The lower the rating agencies assess the creditworthiness of these borrowers, the more capital the bank will have to place in reserve for these investments in the future -- to say nothing of potential defaults.

Commerzbank isn't alone with such problems. The euro crisis and the higher capital requirements being imposed by regulators have adversely affected almost all European banks. And because of growing fears within the banks of a collapse of the euro zone, they are preparing for the worst by withdrawing to their home markets and winding down many investments.

This has serious consequences for the economy, not just along the periphery of the euro zone, but also in Germany, which had proved to be crisis-proof and was in fact booming until recently.
...
The euro crisis hasn't yet reached the German labor market. Last week, Frank-Jürgen Weise, head of the Federal Employment Agency (BA), announced a new jobless low: With 2.8 million people out of work, the unemployment rate had declined to 6.6 percent, the lowest level in 21 years. But in the economic cycle, the labor market is considered a "trailing" indicator. In other words, when things go up or down in the economy, it takes up to six months before jobs are affected.

Indeed, even though the German job market remains robust, BA head Weise says he sees "signs of weaker development." Month after month, the BA surveys all 176 employment agencies throughout the country about early indicators, so as to forecast labor market developments for the coming months. According to these indicators, the jobs situation will not deteriorate until autumn. But "we are nervous about 2013, because of all these risks relating to sovereign debt in the euro zone," says BA chief Weise.

Why is all of this relevant? Because as we get closer each day to the German ESM/Fiscal Pact constitutional court ruling, now expected on July 10, or a day after the ESM was supposed to go into operation, passions will rise. In fact, the Germany CSU chief Seehofer is already making waves with several announcements that put the bailout MOU achieved by Monti over so much blood and tears under question:

German CSU chief says the CSU can't back limitless German Euro aid
German CSU chief says concerned markets may question German Euro strenth
German CSU chief says the CSU doesn't want new constitution for Germany
German CSU chief says CSU rejects transferring powers to EU "Monster State"
German CSU chief says Merkel has no majority without CSU lawmakers

In other words, politicians are already preparing for the fallout from what this latest compromise will mean for Germany once the euphoria from last week's still completely unclear MOU fades, and with Spanish bonds having topped at 6.33% we wonder: was this it?
So when all fails, Germany will need a plan Z. The plan is outlined above, and it involves what Ray Dalio and increasingly more people say is a very real option: Germany just getting the hell out of Dodge first.

end

Charles Biderman on Europe. It is self explanatory:


Biderman On Europe And The Rally: "It's All Bull****"
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 11:24 -0400


Ben Bernanke

Central Banks

Charles Biderman

European Central Bank

Reality

TrimTabs



The sensible Sausalitan is back and this time he is taking on the "baffle 'em with bull****" conclusion of last week's "non-game-changer" EU Summit. After some self-congratulatory chatter on his timely call for markets to ebb from April, Charles Biderman (CEO of TrimTabs) chokes back the spittal as he reflects on what came out of the mouths of European leaders last week: "I cannot see anything new from last week's summit" as he summarizes the findings clearly "The ECB possibly will print more money and save some Spanish and Italian banks". We can't help but agree with Charles when he adds: "Where have I heard that before? Printing Money To Save Banks - wow, how original?". Biderman still believes the Fed will engage in more money-printing but the stock market's current rally is temporary and will falter once again until Bernanke pre-announces his next print-fest."Money-printing is the only solution left for Central Banks and in reality without fundamental changes in the way Europe and the US is run, the best money-printing can do is keep the dieing alive a bit longer"


end.

Spanish 10 yr bond yields closed today at 6.24%

The Italian 10 yr bond yield closed at 5.86%

as the euphoria over the summit continues to lower these two sovereign yields.

end.

Today, the ECB again lowered collateral terms to the banks which probably signify that they are fresh out of any good collateral

(courtesy zero hedge)


ECB Further Eases Collateral Terms
Tyler Durden's picture
Submitted by Tyler Durden on 07/03/2012 11:54 -0400


Counterparties

European Central Bank



Two weeks ago, the ECB, which is now largely expected to cut rates by at least 25 bps imminently, announced it was aggressively expanding the eligible collateral pool of worthless "stuff" it would accept at face value in exchange for fresh EUR bills, in essence engaging in clear cut money printing with the footnote that it was really a loan. The only problem is the loan quality is absolutely worthless and the ECB knows this. Hence money for nothing. Today, the ECB has released another announcement on collateral eligibility, saying that "counterparties participating in Eurosystem credit operations should be allowed to increase current levels of own-use of government-guaranteed bank bonds subject to the ex-ante approval of the Governing Council in exceptional circumstances." However, lest it be seen as merely the latest confirmation that Europe no longer has money good assets, and the ECB is merely encouraging banks to pledge anything they can get their hands on in order to obtain a short-term liquidity injection, it also added the following rider: "[counterparties] may not submit such bonds or similar bonds issued by closely linked entities as collateral for Eurosystem credit operations in excess of the nominal value of these bonds already submitted as collateral on the day this Decision enters into force." But before someone takes this to mean that the ECB actually cares what "assets" on its balance sheet make back its now record €3+ trillion in liabilities, it added Rider B: "Governing Council may decide on derogations from the requirement laid down in paragraph 1." Translated: the free for all rehypothecation race is on, and probably in its last lap, as once any and all collateral is already pledged, the ECB's only hope will be to allow already hypothecated collateral to be rehypothecated. Something which in a non-banana republic would have cost Jon Corzine his job.
From Market News
The European Central Bank Governing Council on Tuesday adopted a further change to ECB rules on the eligibility of collateral for Eurosystem refinancing operations.
In its preamble to the new rule, the Governing Council said “counterparties participating in Eurosystem credit operations should be allowed to increase current levels of own-use of government-guaranteed bank bonds subject to the ex-ante approval of the Governing Council in exceptional circumstances.”
As a result, the Governing Council adopted the following change to its collateral rules, effective immediately:
“The following Article 4b is inserted in Decision ECB/2011/25:
Acceptance of government-guaranteed bank bonds
1. Counterparties that issue eligible bank bonds guaranteed by an EEA public sector entity with the right to impose taxes may not submit such bonds or similar bonds issued by closely linked entities as collateral for Eurosystem credit operations in excess of the nominal value of these bonds already submitted as collateral on the day this Decision enters into force.
2. In exceptional cases, the Governing Council may decide on derogations from the requirement laid down in paragraph 1. A request for a derogation shall be accompanied by a funding plan.”
Source: ECB

end


I am going to leave you tonight with this Graham Summers piece.
When reading this remember that Europe and the USA does not have a liquidity crisis but an insolvency crisis. Also remember that most of the EU members lied to us on results of the Friday summit. Supposedly seniority was to be replaced. That is not so, only the first 100 billion euros to rescue the Spanish banks will have seniority lifted. This is becoming a real farce.

(courtesy Graham Summers/Phoenix Capital Research)




The EU is Out of Money. End of Story. And Neither the Fed Nor the ECB Can "Print" To Save the Day
Phoenix Capital Research's picture
Submitted by Phoenix Capital Research on 07/03/2012 15:55 -0400

Bond

default

European Central Bank

Finland

France

Germany

Greece

Gross Domestic Product

Hank Paulson
Hank Paulson

International Monetary Fund

Ireland

Italy

Monetary Policy

Netherlands

None

Portugal

Yield Curve




While various media outlets and “analysts” try to claim that the EU summit was somehow a success and that Europe’s issues are solved, the fact remains that Europe is out of money. And I mean TOTALLY out of money.

I realize this flies in the face of what 99% of analysts are claiming. But this is a proven fact. Of the various entities that could hold the EU together (the ECB, the IMF, Germany, and the two bailout funds: the EFSF and the ESM) none and I mean NONE of them actually have the capital to do it.

I am continually bombarded with emails from people saying, "well, if things get bad the Fed or ECB will just print and everything is solved."

This is beyond wrong. It is just groupthink based on the idea that the Fed has intervened ever since the Great Crisis began in 2008 (ZeroHedge recently ran an article showing that the Fed has intervened in over two thirds of the months since the Crisis began).

However, even Fed intervention has a limit.

To whit, the Fed has now pulled back from any aggressive monetary policy for over a year. There has been no money printing. Instead, the Fed has re-arranged its portfolio to attempt to flatten the yield curve.

Why is the Fed doing this instead of simply engaging in more QE? The answer is because QE removes Treasuries from the banking system. We are facing a solvency Crisis and Treasuries are the senior most asset on US bank balance sheets.

When the Fed buys a Treasury from a US bank, it is providing liquidity (cash) to the bank to meet the bank's short term funding needs.

However, by removing the Treasury from the bank's balance sheet, the Fed is removing one of the banks senior most assets: the very asset against which the bank has leant or traded hundreds of billions and possibly even trillions of Dollars' worth of loans and trades.

Put another way, the Fed, by buying Treasuries is making insolvent banks even more insolvent. It is a short-term gain (liquidity) for a long-term disaster: banks need as much collateral as they can get their hands on right now. And with Treasuries rallying (raising the value of the banks' assets) any aggressive Fed program to take Treasuries out of the system would be a MAJOR step towards another solvency Crisis a la 2008.

The same pattern is playing out in Europe right now though on a much grander scale (its banking system is nearly four times as large as that of the US). While everyone continues to believe the ECB can save the day, the fact remains that the ECB has NOT bought a single sovereign bond in 14 weeks.

Why is this? The same reason that the Fed is not doing more QE: Europe is facing a solvency Crisis. Removing sovereign bonds from the market may be helpful from a purely liquidity standpoint (cash for trash) but the Crisis in Europe is not based on liquidity, it’s based on solvency. And EU banks need as much senior assets as they can get.

Everytime the ECB buys a sovereign bond it's removing much needed collateral from the EU banking system (a sovereign bond may be garbage, but it's usually less garbage than a EU mortgage loan or an EU corporate loan).

This in turn only increases the solvency issues in the EU banking system. And remember, bank runs are already underway in Spain, Italy, France, and Greece. So banks are desperate for capital and collateral.

THAT is why the ECB cannot and will not simply print to "save the day": doing so would NOT save the day but would in fact accelerate the EU banking Crisis.

So the Fed and the ECB WILL NOT be stepping in unless the entire system starts to go. This leaves the IMF which is a US-backed entity and thus cannot perform a large-scale EU bailout (it's an election year in the US and voters will not tolerate a US-lead bailout of Europe).

So all that is left to prop up Europe are the two mega-bailout funds (the EFSF and ESM) and Germany.

The EFSF's capital is already full committed and stretched to the limit in propping up Portugal and Ireland. So it's not an option anymore.

As for the ESM... well, it doesn't even exist yet: it has yet to be ratified by all the countries that need to vote on it. Moreover, Spain and Italy together are to account for 30% of the ESM's funding. So... these countries would be bailing themselves out!?!

Finally, both Finland and Netherlands are rejecting the idea that the ESM can be used to buy bank bonds. So the ESM, assuming it can even get ratified, will face
major political pressure regarding how it spends its capital.

This leaves Germany as the one and only true EU prop. However, Germany is stretched to the limit.

First off, the country is only €328 billion away from reaching an official Debt to GDP of 90%: the level at which national solvency is called into question.

Moreover, that €328 billion has already been spent via various EU props. Indeed, when we account for all the backdoor schemes Germany has engaged in to prop up the EU, Germany's REAL Debt to GDP is closer to 300%.

In Euro terms, Germany now has €1 trillion in exposure to the EU via its various bailout mechanisms. That's EQUAL TO roughly 30% of German GDP.

If even a significant portion of that €1 trillion goes bad (which it will as this money has been spent helping the PIIGS), Germany's financial system will take a MASSIVE hit.

This will guarantee Germany losing its AAA status, which in turn makes its funding costs much higher (see what happened to France in the last year: that country is now facing bank runs and its own solvency Crisis which you'll be hearing about in the coming weeks).

Angela Merkel is up for re-election next year. There is no way on earth she'll opt to let Germany get dragged down by the EU. She's even said she will not allow Eurobonds for "as long as [she] lives."

This is not empty rhetoric. This is fact. Germany has expressed its intentions dozens of times in the last month: NO Eurobonds and NO guarantee of EU banking deposits.

The reasons for this are simple: EITHER option renders Germany insolvent. It's already teetering on insolvency to begin with. But to allow Eurobonds or some kind of guarantee of the EU banking system to occur on top of the money Germany has already spent propping up the EU will take Germany down.

The German economy is already slowing. Most Germans are fed up with the Euro. Merkel would rather die than let her country become like Greece (which the creation of Eurobonds or EU deposit guarantees would most assuredly result in).

So Germany is tapped out as well. This leaves... NOBODY.

Again, Europe is out of money. End of story. This is the truth and investing based on the idea of some magical bailout occurring is like investing on Hank Paulson's Bazooka policy for Fannie and Freddie (three months later the markets imploded).

Smart investors are using this latest rally in the markets to prepare for what’s coming: an EU banking Crisis that will make 2008 look like a joke. On that note, I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investments (both direct and backdoor) you can make to profit from it.

This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com

Good Investing!

Graham Summers


end.


As tomorrow is the July 4. holiday, I have decided not to give a commentary until I get back. I will do a comprehensive review of events of this week. No doubt all the fun will begin next week when everybody gets back from their holiday.

All the best

Harvey

Posted by Harvey Organ at 2:20 PM 1 comments
Older Posts

[Fiat Metaler]

I still don't get this Barclays rigging LIBOR rates story. I thought the fed and central banks in general rig the rates. How can you rig a rig? Serious question.

its two different things that initially were very separate but yes there is much overlap presently.

libor is an index with perhaps 2 dozen banks submitting rates. none controls the rate individually, but their data form the average.

libor initially was an overnight rate, but also has up to 3 mos i believe, maybe longer but its mostly overnight to 3 mos.

banks and mutual funds swap money overnight at the libor rate.

the fed also has a discount window for overnight, but its only available to banks to borrow. other insitutions can't borrow, and banks can't sell via that window. and there is a stigma to a bank borrowing this way, and its imprudent to borrow this way on a permanent basis.

the fed sets the discount rate, and the auction of treasury securities sets the entire yield curve. but its auctions are sporadic, so the LIBOR market provides more robust data.

historically, the fed set the discount rate and the market through primary dealers like GS and BAC set the rest of the rates. The fed began monetizing the debt only relatively recently, and technically has not admitted to rigging the rest of the market although many folks say that is a fair way to describe Operation Twist. But the rates beyond the discount rate were not set by the Fed, and they were influenced by the Fed only indirectly through open market actions. in the past, those actions were not at the gargantuan levels were they would clearly manipulate the prices of bonds as they do today.

[andial]

But the rates beyond the discount rate were not set by the Fed, and they were influenced by the Fed only indirectly through open market actions. in the past, those actions were not at the gargantuan levels were they would clearly manipulate the prices of bonds as they do today.

Talk about old time open market actions, remember the phrase "coupon pass". :36_11_6:

[southfork]

So your saying the canary in the coal mine has finally died.

[HistoryStudent]

So your saying the canary in the coal mine has finally died.

Perhaps that's what Jim Sinclair meant, right? :bulride: Ride 'em cowboy! $4,500 is on the way next year...


Quotes:

The Bank of England turning their backs on Barclays, the company who did their bidding, will be the event in time marking the trend change.

Many of us in our areas of activity will successfully fight the Riggers. The many complaints that so many of you kindly sent in to fight manipulation released the Kraken in me.

The Kraken is back in its cage where it belongs. The paper trail is there. The worm has turned. Even more importantly is that this fight in the $1540 gold price area was not for regaining the old high in gold. The six attempts to kill gold, supported by some gold writers looking for favors from the riggers was a now failed attempt to keep gold from trading above $3500.

The battle to stop gold has been lost.


FIAT is saying that the CANARY is squealing in its death throws and final gasp...


FIAT MEDALER is also PROFOUND:
historically, the fed set the discount rate and the market through primary dealers like GS and BAC set the rest of the rates. The fed began monetizing the debt only relatively recently, and technically has not admitted to rigging the rest of the market although many folks say that is a fair way to describe Operation Twist. But the rates beyond the discount rate were not set by the Fed, and they were influenced by the Fed only indirectly through open market actions. in the past, those actions were not at the gargantuan levels were they would clearly manipulate the prices of bonds as they do today.

[Fiat Metaler]

FIAT MEDALER is also PROFOUND:
historically, the fed set the discount rate and the market through primary dealers like GS and BAC set the rest of the rates. The fed began monetizing the debt only relatively recently, and technically has not admitted to rigging the rest of the market although many folks say that is a fair way to describe Operation Twist. But the rates beyond the discount rate were not set by the Fed, and they were influenced by the Fed only indirectly through open market actions. in the past, those actions were not at the gargantuan levels were they would clearly manipulate the prices of bonds as they do today.[/QUOTE]


just to elaborate, today its largely assumed that the Fed sets rates (plural). This is like a Russian politburo price fixing arrangement. While I don't believe this has ever been formally acknowledged, its a VERY RECENT PHENOMENON. Things have changed at warp speed, and its hard to remember how things used to be. Up until say 2008 or later, the Fed set only the overnight rate which was basically a floor. But very few banks borrowed at the discount window because of the stigma. In the U.S., the prime rate was set competitively as a spread over this floor, but the discount window never reflected the banks' cost of funds.

LIBOR was a deeper and more active market, especially in tenors 3 months and shorter, so it was until recently viewed as more accurate. So may banks base their cost of funds on Libor - they issue their own bonds at a market-determined spread over say 3-month libor. Now, they may immediately swap that exposure to fixed rate, but the point is most interest rates are determined off of LIBOR.

The one thing that is missed by some observers is that they were mostly understating the rate to maintain confidence, and secondarily to reduce their own financing costs. Homeowners benefited from this because it gave them a lower, not higher rate.

Also, as flawed as LIBOR is, most rates key off of LIBOR and there is no mechanism to replace it. Also, consider that there are orders of magnitude more lenders to set their rate by reference to LIBOR - such as the maker or holder of your mortgage - none of which have any involvement in the wrongdoing at LIBOR. So you'll hear a lot about libor in the coming weeks, and you may have been affected by this, but it doesn't mean you have a claim against your lender - in fact, you may have received a windfall.

Finally, we are getting a bit far afield. I think what Sinclair is saying is that it is hugely noteworthy that Barclays is outing the BOE. BAC here in teh US came close to doing the same in the aftermath of their acquisition of Merrill Lynch.

PS - the discussion of the canary is over my head. who is the canary.

[KnowLaw]

Jim Sinclair is NOT backing down.

The War Between Manipulation and Buying (http://www.jsmineset.com/2012/07/06/the-war-between-manipulation-and-buying/)

Sinclair: "There is a full blown crisis in Western world banking today, right here and now. There is a full blown crisis in sovereign debt of some weaker nations as in a very short while certain government will be out of money. The Eurosnobs hate each other which does not make for a fast reconciliation of a crisis."

Although I respect Jim's opinion, only time will tell whether or not his timing is correct. I'm not sure that TPTB have lost total control of the situation yet. And I'm not sure if anyone knows how close they are to losing that control.

My best estimate is that they will maintain control at least through the elections in the Fall 2012 in order to get their man elected (preferably Obama, but Romney will do in a pinch). After that, it's anybody's guess as to what might occur and when it might occur.

All current sources indicate that when the price starts moving upward, there will be a orderly march to the top; maybe a few spurts along the way, but an orderly march overall. It ought to be obvious after Thursday and Friday's market action in the precious metals that TPTB still maintain control over the (perceived) price in the market. How long those who are complicit in this action will be willing to maintain their complicity will be interesting to see. Jim seems to think that certain players in the East may be willing to break away from the pack backing the intervention. Time will tell.

[HistoryStudent]

In the OLD days a MINER in the mines (usually coal) would take a canary in a cage down there to the bottom. The CANARY would quickly DIE if gases killed him - way before the MEN down there.

So if the CANARY died - the MEN would run like hell to get out of there to avoid their death.


If a canary dies now in the bank system it is crashing down - get out quick as they are doing all over Europe.

[KnowLaw]

In the OLD days a MINER in the mines (usually coal) would take a canary in a cage down there to the bottom. The CANARY would quickly DIE if gases killed him - way before the MEN down there.

So if the CANARY died - the MEN would run like hell to get out of there to avoid their death.


If a canary dies now in the bank system it is crashing down - get out quick as they are doing all over Europe.
I agree with your analogy up to a point. However. . .

. . . the canary died quite a while ago, in 1933 when the U.S. went off the gold standard or in 1971 when Nixon closed the gold window at Treasury, take your pick. It's taken 41 years (from 1971) for the gases finally to reach the deadly level they have reached today.

Yet, Europeans (Greeks, Italians, and Spaniards) who are moving their Euros from a domestic bank in their own country over the boarder to another country are only shooting themselves in the foot as they have not protected their "money" from depreciation by the central bank. That's like someone in the U.S. moving their fiat FRNs from a California bank to a bank in Utah and expecting to maintain purchasing power because their home state's borrowing power is being penalized by their creditors. The currency is maintained all under the same central banking system.

You have to leave the extant banking system in order to protect purchasing power. Europeans aren't doing that yet.

Only when they begin exchanging their fiat currency for substance and holding gold and silver (and other means of substance) will they be able to protect the purchasing power of their (perceived) wealth. Not until then will the prices in PMs begin to skyrocket as Jim Sinclair suggests.

Just because some Europeans are moving their fiat around between banks doesn't mean that they have AWAKENED to what is happening yet. They're still asleep (thanks to a complicity media pumping out propaganda on a daily basis).

[Irons]

Sounds like silver fish type of rah-rah crap

[HistoryStudent]

It's always BETTER to be sure and wait for it to hit BETWEEN $3,500 and $4,500 then YOU KNOW FOR SURE, :afraid: right?

:hmmmm2:

[Au-myn]

I remember when Sinclair made those statements about Au going to $1650. Yup, many people thought he was NUTS. I also believe Au will hit AND surpass $3500.

In 2004 I told my friends that Au would break 1K within a few years and they all laughed at me. Remember my Dad calling me "crazy" and telling me my charting was a waste of time. When Au hit 1K in early 2008 one of my friends did call me and congratulate me for making the call. My reply, "You should have bought Au, it's not too late because it is going much higher".

[orovicino]

HS you've posted a lot of these articles from these dingbats, claiming "to the moon". Jim Sinclair on the other hand is someone I respect, and listen to when he speaks. Will be interesting to see what happens. Hopefully he is correct.

:cool1:In my humble opinion!!!! Those that wait to "see what happens" in this critical time, will be like waiting to see an avalance start, not realizing that once it starts it wil be TOO LATE to get in on the action, there will be NO SELLERS OF PMs , they will just sit back in awe and watch the emazing spike on their charts.. :afraid::realmad::afraid::hmmmm2: Act now to protect your purchasing power.

[Gcubed]

:cool1:In my humble opinion!!!! Those that wait to "see what happens" in this critical time, will be like waiting to see an avalance start, not realizing that once it starts it wil be TOO LATE to get in on the action, there will be NO SELLERS OF PMs , they will just sit back in awe and watch the emazing spike on their charts.. :afraid::realmad::afraid::hmmmm2: Act now to protect your purchasing power.

You are describing what is known as a "Blow Off Top". That ALWAYS ends badly and creates bag holders. Slow and steady kid, slow and steady. :cool1:

[GOLD DUCK]

QWAK,When I sold what was left of the stock I owned after the 2000 crash I bought GOLD EAGLES at $257.00 and even back then some people talked about SOME DAY GOLD going to $10,000.00 and I still believe it WILL HAPPEN! :idea::thumbs_up:

I have been a HAPPY CAMPER with GOLD EGGS in my NEST and I can almost (?) :hmmmm2:hear the sounds of EGGS HATCHING!:thumbs_up:

When you KNOW what is RIGHT and that every thing going on is WRONG:idea: --- then ALL choices other than GOLD/GOD are WRONG choices and CRAZY don't mater because in an ASILEM every one is CRAZY -- even OR especialy the Doctors, Nurses and STAFF that work there! :afraid::banana::banana::banana:

The CONCEPT of what IS and IS NOT money is about to be REDEFINED for the slow learners and others who have for got that MONEY is about WORK and EFFORT and NOT about DEBT SLAVERY!:thumbs_up::idea::bowdown:

All the SCAMS and HOAXES are being EXPOSED so that all will see the FRAUD and DECEPTIONS that created this global economic catastrophy ware every one was lieing to every one else either knoingly or not it became the NORM! :idea::thumbs_down::cry_smile:

Personaly I believe the FIAT DOLLAR will be gone befor we see 10K --- but I could be wrong! :hmmmm2:

the DUCK:s9:

[HistoryStudent]

You are describing what is known as a "Blow Off Top". That ALWAYS ends badly and creates bag holders. Slow and steady kid, slow and steady. :cool1:

The BLOW off top is between $12,000 to $50,000 and the fiat money will be made new.

However, the holders will still have the same buying power.


This time is really really different.

GOLDEN NUGGETS

◄$$$ THOSE CAMPS WHICH POSSESS THE GOLD MAKE THE RULES AND RULE THE WORLD. BY SELLING OUT FORT KNOX AND LEASING COUNTLESS TONNAGE OF ALLOCATED GOLD ACCOUNTS IN WESTERN NATIONS, THE UNITED STATES WROTE ITS EPITAPH. PILFERAGE REIGNED SUPREME. THE QUESTION REMAINS THE TIME OF DEATH. DECISIONS WERE MADE TO EMBRACE FRAUD AND THEFT, NOT PRODUCTION AND FAIR TRADE. THE CONSEQUENCES ARE RUIN, PAINFULLY EVIDENT ACROSS THE ENTIRE WESTERN WORLD. $$$

On a systematic basis, the Clinton-Rubin Admin gutted Fort Knox. They used a near 0% gold lease rate to access the gold bullion. They put on massive short gold futures contracts with the expertise of Rubin, formerly head of the London Gold desk at Goldman Sachs. The massive USTBond futures contracts magnified their ill-gotten gains. The result was the infamous Decade of Stolen Prosperity, led by the significant lengthy period where the USTreasury Bond yields came way down. The reduced cost of capital enabled the USEconomy to benefit from lower borrowing costs. But it was a queer expansion tilted toward the finance sector, complete with its warp drive engineering. Unfortunately, the nation became victims of consumer addition, followed by eager players in the housing bubble. The entire 15-year period has left the United States in ruins, beset by diverse insolvency in every sector.

The wrecking zone was not limited to the United States. Canada sold off almost the entirety of its gold bullion reserves, in support of the US gaming. To compound the destructive damage, the Wall Street crooks by all indication have sold an enormous amount of gold snatched from Allocated accounts belonging to citizens of various Western nations. Not only does the US have zero gold in Fort Knox, the Wall Street thugs sold the gold in foreign accounts held in New York City. My best gold trader source has informed me repeatedly that the Western bankers (US, London, Swiss) have sold 20 thousand tons of Allocated gold improperly. The figure could be higher than 30 thousand tons of gold. They must find a way to replace it, to condone its theft, or to make owners satisfied with cash redemption. That is not gonna happen! The extreme legal problems in Switzerland over the improper raids on Allocated accounts have resulted in multi-$billion lawsuits, all kept out of the news by obedient servants.

The Interest Rate Swap buttress can no longer keep the USTBond towers from falling. The architect in JPMorgan is going to experience a wicked but deserved death event. On the other side of the Atlantic Ocean, Deutsche Bank will fall too, from the Interest Rate Swaps and scattered Credit Default Swaps they insure as the primary European derivative under-writer. The stage was set when D-Bank acquired the cesspool remains of Bankers Trust in 1999. The gold is finding itself in Eastern hands, having been part of a massive one-way flood of transport from Western bank locations, all part of the gold cartel network drainage process.

The age-old maxim is true, always was true, and always will be true: WHOEVER HAS THE GOLD MAKES THE RULES AND RULES THE WORLD. Some clownish commentary has come in recent weeks about how it does not matter if the USGovt has its gold anymore. The vast military complex cannot keep a dead hollow banking system upright. The ample output from the Printing Pre$$ cannot construct strong walls upon which the weight of the world's banks can operate as credit engines and investment bank proving grounds. Decisions were made to embrace fraud and theft, not production and fair trade. The sun is setting on the Western empire led by the United States and its puppeteer England. The sun has lost its golden shimmer. The next chapter will be led by Asia, unless the West decides to use physical weapons of mass destruction in its vengeance.

◄$$$ BALTIC DRY INDEX OFFERS MORE EVIDENCE ON GLOBAL RECESSION. SHIPPING COSTS OF DRY GOODS AND DRY MATERIALS ARE MAKING NEW MULTI-YEAR LOWS. THE STORY TOLD BY POLITICIANS OF A RECOVERY IS PURE RUBBISH. A COORDINATED RECESSION IS GATHERING FORCE. $$$

◄$$$ FARMLAND PRICES ARE RISING STEADY & FIRM. THE CENTRAL BREAD BASKET HAS SEEN THE STRONGEST PRICES AND GREATEST GAINS. THE MOVEMENT TOWARD HARD ASSETS IS EVIDENT. $$$

The Farmers National Company regional land value reports compare 2011 to 2012 value. They show strong commodity prices continue to create record demand and sales activity for farmland. Heavy turnover has come, from intense sell-side interests. The inventory of Midwest land for sale is tight. The firm reports sales volume rose 40% compared to 2011, on a record pace that continues. The farmers consortium sold $600 million of farmland in the past twelve months, which included $350 million in past six months. This equates to over 800 farm sales during that time period.

A clash of positive and negative market pressures is at work. The positives have demand for grain from world markets remaining strong against a limited supply of land, boosting land prices. Revenue returns to land owners have been strong over last year even though input costs have increased. The negatives have uncertainty from in Europe, potential for price inflation on the cost side, the risk of drought, the risk from a successful bumper crop, and the potential for increased capital gains taxes. Farmland is perceived as a safe tangible investment, part of the hard asset investment trend to defend against monetary debasement. Gold & Silver, energy, and farmland will stand as stellar investments though out the crisis. Art works and antiques will drop off.

[Fiat Metaler]

Sounds like silver fish type of rah-rah crap

yes, but i think Mr. Sinclair prefers to be called a gold bug rather than a silver fish, lol.

Sinclair is one of the good guys.

[Irons]

yes, but i think Mr. Sinclair prefers to be called a gold bug rather than a silver fish, lol.

Sinclair is one of the good guys.

I'll take your word for that. I don't follow any of those clowns.

[Fiat Metaler]

I remember when Sinclair made those statements about Au going to $1650. Yup, many people thought he was NUTS. I also believe Au will hit AND surpass $3500.

In 2004 I told my friends that Au would break 1K within a few years and they all laughed at me. Remember my Dad calling me "crazy" and telling me my charting was a waste of time. When Au hit 1K in early 2008 one of my friends did call me and congratulate me for making the call. My reply, "You should have bought Au, it's not too late because it is going much higher".

yeah, i can remember someone on the JOE board claiming that silver would outperform JOE. that was probably around 2002. Joe ultimately went up to 80, then down below $15. Silver is probably still up by a factor of 7 from its 2002 price.

[HistoryStudent]

yeah, i can remember someone on the JOE board claiming that silver would outperform JOE. that was probably around 2002. Joe ultimately went up to 80, then down below $15. Silver is probably still up by a factor of 7 from its 2002 price.

Don't mess with with those gold HOORS they don't see with common sense.

They are like YANKEE fans.


They have ONE-TRACK minds. Wait ... Until TPTB freezes gold physical.

They are all thinking with their meat rocket LIKE chasing Platinum blondes.



Then they get the wake-up call. Actually platinum is also good.

Gold up 6.2 times & silver up 6.8 times since 2001.


And everything now is in the TOILET. In other words - cheaper then in 2001 - with the money supply
figured in.

Platinum is really really cheap. NOW!

Ding-a-lings never get the basket "thingie." I think they are all blondes.


PLATINUM BLONDES!

~ HS having fun... kinda...

[Fiat Metaler]

The BLOW off top is between $12,000 to $50,000 and the fiat money will be made new.

However, the holders will still have the same buying power.


This time is really really different.

GOLDEN NUGGETS

◄$$$ THOSE CAMPS WHICH POSSESS THE GOLD MAKE THE RULES AND RULE THE WORLD. BY SELLING OUT FORT KNOX AND LEASING COUNTLESS TONNAGE OF ALLOCATED GOLD ACCOUNTS IN WESTERN NATIONS, THE UNITED STATES WROTE ITS EPITAPH. PILFERAGE REIGNED SUPREME. THE QUESTION REMAINS THE TIME OF DEATH. DECISIONS WERE MADE TO EMBRACE FRAUD AND THEFT, NOT PRODUCTION AND FAIR TRADE. THE CONSEQUENCES ARE RUIN, PAINFULLY EVIDENT ACROSS THE ENTIRE WESTERN WORLD. $$$

On a systematic basis, the Clinton-Rubin Admin gutted Fort Knox. They used a near 0% gold lease rate to access the gold bullion. They put on massive short gold futures contracts with the expertise of Rubin, formerly head of the London Gold desk at Goldman Sachs. The massive USTBond futures contracts magnified their ill-gotten gains. The result was the infamous Decade of Stolen Prosperity, led by the significant lengthy period where the USTreasury Bond yields came way down. The reduced cost of capital enabled the USEconomy to benefit from lower borrowing costs. But it was a queer expansion tilted toward the finance sector, complete with its warp drive engineering. Unfortunately, the nation became victims of consumer addition, followed by eager players in the housing bubble. The entire 15-year period has left the United States in ruins, beset by diverse insolvency in every sector.

The wrecking zone was not limited to the United States. Canada sold off almost the entirety of its gold bullion reserves, in support of the US gaming. To compound the destructive damage, the Wall Street crooks by all indication have sold an enormous amount of gold snatched from Allocated accounts belonging to citizens of various Western nations. Not only does the US have zero gold in Fort Knox, the Wall Street thugs sold the gold in foreign accounts held in New York City. My best gold trader source has informed me repeatedly that the Western bankers (US, London, Swiss) have sold 20 thousand tons of Allocated gold improperly. The figure could be higher than 30 thousand tons of gold. They must find a way to replace it, to condone its theft, or to make owners satisfied with cash redemption. That is not gonna happen! The extreme legal problems in Switzerland over the improper raids on Allocated accounts have resulted in multi-$billion lawsuits, all kept out of the news by obedient servants.

The Interest Rate Swap buttress can no longer keep the USTBond towers from falling. The architect in JPMorgan is going to experience a wicked but deserved death event. On the other side of the Atlantic Ocean, Deutsche Bank will fall too, from the Interest Rate Swaps and scattered Credit Default Swaps they insure as the primary European derivative under-writer. The stage was set when D-Bank acquired the cesspool remains of Bankers Trust in 1999. The gold is finding itself in Eastern hands, having been part of a massive one-way flood of transport from Western bank locations, all part of the gold cartel network drainage process.

The age-old maxim is true, always was true, and always will be true: WHOEVER HAS THE GOLD MAKES THE RULES AND RULES THE WORLD. Some clownish commentary has come in recent weeks about how it does not matter if the USGovt has its gold anymore. The vast military complex cannot keep a dead hollow banking system upright. The ample output from the Printing Pre$$ cannot construct strong walls upon which the weight of the world's banks can operate as credit engines and investment bank proving grounds. Decisions were made to embrace fraud and theft, not production and fair trade. The sun is setting on the Western empire led by the United States and its puppeteer England. The sun has lost its golden shimmer. The next chapter will be led by Asia, unless the West decides to use physical weapons of mass destruction in its vengeance.

◄$$$ BALTIC DRY INDEX OFFERS MORE EVIDENCE ON GLOBAL RECESSION. SHIPPING COSTS OF DRY GOODS AND DRY MATERIALS ARE MAKING NEW MULTI-YEAR LOWS. THE STORY TOLD BY POLITICIANS OF A RECOVERY IS PURE RUBBISH. A COORDINATED RECESSION IS GATHERING FORCE. $$$

◄$$$ FARMLAND PRICES ARE RISING STEADY & FIRM. THE CENTRAL BREAD BASKET HAS SEEN THE STRONGEST PRICES AND GREATEST GAINS. THE MOVEMENT TOWARD HARD ASSETS IS EVIDENT. $$$

The Farmers National Company regional land value reports compare 2011 to 2012 value. They show strong commodity prices continue to create record demand and sales activity for farmland. Heavy turnover has come, from intense sell-side interests. The inventory of Midwest land for sale is tight. The firm reports sales volume rose 40% compared to 2011, on a record pace that continues. The farmers consortium sold $600 million of farmland in the past twelve months, which included $350 million in past six months. This equates to over 800 farm sales during that time period.

A clash of positive and negative market pressures is at work. The positives have demand for grain from world markets remaining strong against a limited supply of land, boosting land prices. Revenue returns to land owners have been strong over last year even though input costs have increased. The negatives have uncertainty from in Europe, potential for price inflation on the cost side, the risk of drought, the risk from a successful bumper crop, and the potential for increased capital gains taxes. Farmland is perceived as a safe tangible investment, part of the hard asset investment trend to defend against monetary debasement. Gold & Silver, energy, and farmland will stand as stellar investments though out the crisis. Art works and antiques will drop off.


this sounds like Jim Willie, who I like although he errs on being early than being precise.

Sinclair put out a number of roughly $7000, which is based on backing world sovereign debt at a 40% gold backing iirc. He also endorses Alf Fields who has it going past 4500. I point this out because these numbers are more modest and have greater support than some of the numbers bandied about.

I subscribe to Willie and his newsletter has a lot of good information if take with a healthy dose of salt.

[Fiat Metaler]

I'll take your word for that. I don't follow any of those clowns.

Sinclair is not a clown. Is there anything constructive you can contribute to this thread?

[Irons]

Sinclair is not a clown. Is there anything constructive you can contribute to this thread?

Yep. Make your own decisions based on your own research and don't listen to clowns.

[HistoryStudent]

NOW NOW NOW

Can't we all get along? As a dead Rodney King said.

Like US Mint started with GOLD SILVER and COPPER.

In 1793 ish.. ~ HS

They were the FIRST monetary metals (read baskets) that had no BS third party for guarantee.


*******************************************

It Won’t Be Too Long Before The Gold/Silver Market Manipulation Scandal Goes Mainstream … BIG TIME!



By: Bill Murphy, LemetropoleCafe.com


-- Posted Monday, 9 July 2012 | Share this article | Source: GoldSeek.com

Times are finally changing. It will never be at the speed the GATA camp expects, yet slowly but surely our time is coming. The GATA camp will be proven correct and it will evolve into one of the most grotesque scandals in history … dwarfing the Enron, Madoff, MF Global and Barclays scandals combined, in terms of its effects on financial markets around the world.

First of all, it has come to my attention that in January 2011 JP Morgan, for some yet unknown reason, was compelled to stop manipulating the silver market. That is when the price of silver went vertical to the upside…

Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June. Now, if that is the case, JPM worked through some sort of auxiliary account to overnight raid silver in the earliest of May in 2011, because that is when The Gold Cartel/JP Morgan went into combative action in earnest to crash the price down…

Monthly silver price
http://futures.tradingcharts.com/chart/SV_/M?anticache=1341620769

I hope to be able to explain more of this in the near future, but that is what I can put in the public domain for the moment.

But, there must be more for me to be jumping up and down like I am doing here, and there is.

To begin with, there is the Barclays LIBOR market manipulation scandal. Many of the participants are the same banks GATA has cited over the years for manipulating the gold and silver markets. Speaking of some of those banks…

Libor rate-fixing scandal spotlight now on Citi, JPMorgan

By Agence France-Presse
Saturday, July 7, 2012 9:03 EDT

***

Yes, you know much about this, but the fact that this market rigging scandal is now evolving into the criminal stage is no minor event.

And, let me say this; JP Morgan’s public declaration about being offside on a $2 billion dollar "hedge transaction" was not fully transparent. My sources tell me that was the case, but in addition, that what JPM CEO Jamie Dimon said at the time was camouflaging another serious financial problem. At the time it made little sense that a CEO would talk about a trade loss of that kind when his firm was making $18 billion dollars a year. The smell meter that the situation was much more serious than $2 billion lit up the light bulbs on the GATA camp scoreboard. Since then New York Times has reported the amount of the loss could be as high as $9 billion.

The bottom line here: my well informed source tells me that the Jamie Dimon lament is about a derivatives problem that also involves the silver position JPM took over for the Fed when Bear Stearns went belly up. I hope to have more particulars on this declaration in the near future. The main point is that JPM has some serious issues with their present short silver position and is having difficulty extricating itself from that position. Whether it has to do with coming up with a large amount of borrowed physical silver, I am not sure. We will stay on the case and report on any new developments.

OK, let us move on to why the gold/silver market manipulation scheme is getting that much closer to blowing up…

*Every GATA follower knows that the CFTC has been investigating JP Morgan’s role in their manipulation of the silver market for nearly FOUR YEARS. All I can say that CFTC Commissioner Bart Chilton, whom I have met twice and have the highest respect for, has told me that something is going to surface (either way) on this matter in the next month or two.

*The Barclays LIBOR market manipulation scandal is just one more proof of what the GATA camp has been saying for eons … that our financial markets are blatantly manipulated. As the investigations into this scandal grow, it could easily lead into what certain banks have been doing in the gold and silver markets in anti-trust fashion.

*The latest revelations in Thomas Pascoe’s expose in The Telegraph in London are likely to stir the pot further about the manipulation of the gold and silver markets. The article reads as if it was written by one of us in the GATA camp, as Pascoe makes one point after another that we made so long ago. Here it is again for your review…

Revealed: Why Gordon Brown Sold Britain's Gold at a Knock-Down Price

By Thomas Pascoe
The Telegraph, London

Thursday, July 5, 2012

A great deal of Gordon Brown's economic strategy would strike a sane man as troubling. Not a great deal was mysterious. The orgy of consumption spending, frequent extensions of the cycle over which he would "borrow to invest," proclamations of the "end of boom and bust": These are part of the armoury of modern politicians of all political hues.

One decision stands out as downright bizarre, however: the sale of the majority of Britain's gold reserves for prices between $256 and $296 an ounce, only to watch it soar so far as $1,615 per ounce today.

When Brown decided to dispose of almost 400 tonnes of gold between 1999 and 2002, he did two distinctly odd things.

First, he broke with convention and announced the sale well in advance, giving the market notice that it was shortly to be flooded and forcing down the spot price. This was apparently done in the interests of "open government" but had the effect of sending the spot price of gold to a 20-year low, as implied by basic supply and demand theory.

Second, the Treasury elected to sell its gold via auction. Again, this broke with the standard model. The price of gold was usually determined at a morning and afternoon "fix" between representatives of big banks whose network of smaller bank clients and private orders allowed them to determine the exact price at which demand met with supply.

The auction system again frequently achieved a lower price than the equivalent fix price. The first auction saw an auction price of $10 less per ounce than was achieved at the morning fix. It also acted to depress the price of the afternoon fix which fell by nearly $4.

It seemed almost as if the Treasury was trying to achieve the lowest price possible for the public's gold. It was.

One of the most popular trading plays of the late 1990s was the carry trade, particularly the gold carry trade.

In this a bank would borrow gold from another financial institution for a set period, and pay a token sum relative to the overall value of that gold for the privilege.

Once control of the gold had been passed over, the bank would then immediately sell it for its full market value. The proceeds would be invested in an alternative product which was predicted to generate a better return over the period than gold which was enduring a spell of relative price stability, even decline.

At the end of the allotted period, the bank would sell its investment and use the proceeds to buy back the amount of gold it had originally borrowed. This gold would be returned to the lender. The borrowing bank would trouser the difference between the two prices.

This plan worked brilliantly when gold fell and the other asset -- for the bank at the heart of this case, yen-backed securities -- rose. When the prices moved the other way, the banks were in trouble.

This is what had happened on an enormous scale by early 1999. One globally significant US bank in particular is understood to have been heavily short on two tonnes of gold, enough to call into question its solvency if redemption occurred at the prevailing price.

Goldman Sachs, which is not understood to have been significantly short on gold itself, is rumoured to have approached the Treasury to explain the situation through its then head of commodities Gavyn Davies, later chairman of the BBC and married to Sue Nye, who ran Brown's private office.

Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain's gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations.

I spoke with Peter Hambro, chairman of Petroplavosk and a leading figure in the London gold market, late last year and asked him about the rumours above.

"I think that Mr Brown found himself in a terrible position," Hambro said.

"He was facing a problem that was a world-scale problem where a number of financial institutions had become voluntarily short of gold to the extent that it was threatening the stability of the financial system and it was obvious that something had to be done."

While the market manipulation that occurred when the gold reserves were sold was not illegal as the abuse at Barclays may have been, the moral atmosphere in which it took place was identical.

The crash which began in 2007 and endures still was the result of an abdication of responsibility across the financial sector. This abdication ranged from the consumer whose thirst for goods pushed him beyond into grave debt to a government whose lust for popularity encouraged it to do the same.

Responsibility is evaded by all bar those on whose shoulders it ought to rest. The gold panic of 1999 was expensively paid for by the British public. The one thing politicians ought to have bought with that money was a lesson in the structural restraints that needed to be placed on banks now that the principle that they were ultimately public liabilities had been established.

It was a lesson that could have acted to restrain all players in the credit market boom of the 2000s. It was a lesson nobody learnt.

-----

Thomas Pascoe worked in both the Lloyd's of London insurance market and in corporate finance before joining the Telegraph. He writes about the financial markets.

* * *

Perhaps Thomas Pascoe might like to read a portion of what I wrote for the Café on September 5th 1999, three weeks prior to the September 26th Washington Agreement announcement, one which sent the gold world into a tizzy.

Cafe des Scandales

It is fascinating to me that much of what we have covered in the Café over the past year is starting to synchronize and beginning to boil over a bit. Thus, I thought I would put some labor into this Labor day weekend and examine what is happening on the potential "scandal" front, as well as update The Café on the peculiar nature of it all.

Much of the hubbub about the manipulation of the gold market began early last fall. Then, Long Term Capital Management was supposedly taken off the hook on a 300 tonne "borrowed gold" short position by the financial entities that bailed them out. Since I had heard as early as May, 1997, that they might have this amount of gold exposure, it was no surprise to me to hear so many rumors floating around of this nature and I did not hesitate to publicly question the propriety of it all.

Our protestations caught the attention of Long Term Capital Management and their attorney, James G. Rickards, who sent us a letter, along with an affidavit from Principal, Eric Rosenfeld. Rickards stated that Long Term Capital Management denies any involvement in the manipulation of the gold market and Rosenfeld said to the Cafe, "None of LTCM, LTCP, nor their affiliates, has ever entered into any transaction involving the purchase or sale of gold, including without limitation, spot, forwards, options, futures, loans, borrowings, repurchases, coin or bullion, long or short, physical or derivative or in any other form whatsoever."

I responded to Rickards in a letter saying that the Café never accused LTCM of manipulating the gold market, nor did I ever say that that they "traded" gold. I strongly suggested that had "borrowed" 300 tonnes (approx) of gold and had gold exposure in a credit sense with the bullion banks and asked him for a response.

He never did respond to me and it was just announced over the press wires that he resigned from Long Term Capital Management to join another firm. I will now have to find out who their new attorney is and start all over.

Then there is information we received from a very sophisticated source that a blind trust for Hillary Clinton "shorted" gold instruments just prior to the Bank of England gold sale. Ironically, the media reported yesterday that the down payment for the Clinton's new home in Westchester County, New York, came from her blind trust.

It was strongly suggested to me from a source that we try and find out if Hillary Clinton has a blind trust at Goldman Sachs. The Gold Anti-Trust Action Committee and the Café now have allies looking into this matter. We are trying to find out who is handling her blind trust(s) or any other type of account she might have and, once identified, attempt to elicit a response about the gold shorting innuendoes.

Why would this be the H-bomb as far as we are concerned? Simply put, I have set forth much commentary linking The Clinton administration, the N.Y. Fed, Goldman Sachs, Long Term Capital Management, England's Exchequer, The Bank of England and Prime Minister Tony Blair. A revelation of this nature would solidify the link. For example:

*Former Treasury Secretary Robert Rubin, is a former Goldman Sachs CEO.
*Former N.Y. Fed Governor, Ed Corrigan is a senior partner at Goldman Sachs
*London based senior partner, Gavyn Davies, is Goldman Sach's international economist and has close ties to Tony Blair. Davies wife, Susan Nye, is Chancellor of the Exchequer's office manager.
*Dr Sushil Wadhwani, former Director of Equity Strategy at Goldman Sachs International (1991-95), sits on the Bank of England's Monetary Policy Committee. The committee's duties include determining the Bank's objectives and strategy, ensuring the effective discharge of the Bank's functions and ensuring the most efficient use of the Bank's resources.
*Jon Corzine, former Goldman Sachs CEO, has close ties to John Meriwether, chairman of Long Term Capital Management.
*Former Fed vice chairman, David Mullins , was a partner in Long Term Capital Management which, of course, was bailed out in part by Goldman Sachs.

Exhibit 2 and further background information on the significance of the Hillary Clinton gold "shorting" story: this is commentary about the Bank of England gold sale from the document that I sent to Senator Phil Gramm, Chairman of the Senate Banking Committee:

"Yet, the night before the BOE announcement (May 6, 1999), I feared duplicity and this is what I wrote in my Midas du Metropole commentary:

"We know 'the squad' are all lining up, one more time, to try and stifle a decent gold move to the upside. Deutsche Bank, Chase, Swiss Bank and Goldman Sachs were all there selling gold during today's session and, when they had to, even throwing the kitchen sink at the bull's attack. Deutsche Bank has been especially aggressive and noticeable in their selling the past few days. We got word late this afternoon that their bullion desk is calling their clients saying that the gold market is stopping at $290. I don't think Midas followers will be surprised when we tell you that big sellers late in the day today and taking on all bids were 'Squad' honchos Goldman Sachs and Deutsche Bank. 'The Battle for Navarone' is an important stand for them, for if $290 is taken out to the upside, their long standing bearish position could begin to look a bit shaky."

The next morning I awoke to the Bank of England announcement. Since then the price of gold has collapsed over $36 - or almost 15% per cent - and the sale has ignited a furor all over the world, fostering talk of conspiracies, etc…

http://www.lemetropolecafe.com/Pfv1.cfm?pfvID=378&SearchParam=Nye

***

Hmmm…

*GATA could not have been too far off base with what we knew about LTCM, the enormous hedge fund that blew up in September of 1998. For sure the bullion banks were protecting that size short position at LTCM because they were all doing the gold carry trade that T Pascoe is referring to. Do you think the these days very visable Jim Rickards would have come to London to make a presentation at GATA’s Gold Rush 2011 conference at the Savoy Hotel last August if we were way off base?

*David Mullins? … partner at LTCM and former Fed vice chairman. No one is more involved in rigging the gold price than the Fed. The Fed coordinated the liquidation of LTCM including preventing the price of gold from taking out $300 on the upside.

*Phil Gramm? He never was any help to GATA. And his wife Wendy …. She was the chairman of the CFTC from 1988 to 1993. After a lobbying campaign from Enron, the CFTC exempted it from regulation in trading of energy derivatives. Subsequently, Gramm resigned from the CFTC and took a seat on the Enron Board of Directors and served on its Audit Committee.

What more needs to be said on that one!

*Which takes us to the notorious Jon Corzine, of MF Global scandal note. Farmers in the Midwest, and investors (some of whom I know) are still waiting to get the money back he and his firm stole from them when they went belly-up. Money that was supposed to be default free as per the CME and its faulty dictates. Money, that in part, went to JP Morgan. Seems like if there is a financial market scandal these days, JP Morgan won’t be far away. And, of course, Corzine was a Goldman Sachs man at one time.

*Good ole Goldman "Hannibal Lecter" Sachs, as I called them for years. Goldman Sachs was the ringleader of The Gold Cartel from the beginning. Visibly, they were the largest short on the TOCOM in Japan for many years too. However, several years ago GS exited the gold market rigging scheme … before the price of gold really took off to where it is today.

From Corzine to Robert Rubin, who was the one who popularized the gold carry trade in the first place. We know this for a fact from the person who carried out his dictates at GS owned J. Aaron in London. Back then interest rates were relatively high and Rubin began borrowing gold on the cheap, selling it, and used the proceeds to fund its operations and market activities … just as Thomas Pascoe said in his article.

Rubin then took it a step further when he became US Treasury Secretary. The rigging of the gold price was the lynchpin of his much talked about "Strong Dollar Policy."

*Probably could go on and on, but you get the picture. What an incestuous story … the Blair Government, LTCM, the Clintons, the Fed, the Bank of England, Goldman Sachs. When the gold and silver markets finally BLOW UP, much of this will come out in the wash. Just a matter of time.

Thomas Pascoe mentioned Peter Hambro, who is quite the gentleman and quite a business success. I have met Peter a couple of times in London and very much enjoy his company. He sent me the following on January 3, 2000, which is related to this subject matter. You might find some of the details to be of interest. Anyways it can’t hurt to have it out there on the public record again…

The following is an email I received from Peter Hambro on this correspondence.

Bill,
My thoughts are simple on this:

* Here we have correspondence between, on the one hand, a genuinely interested and informed gold miner and, on the other the Governor of the Bank of England and the Number Two person at the UK Treasury.

* The questions I asked are reasonable and, in spite of what the Governor says, do not require any disclosure of confidential client information.

* Instead the UK Authorities steadfastly refuse to answer any of the detailed points.

* Either they have something to hide or they are failing in their duty to deal in the open manner with a UK taxpayer that Mr Blair and his New Labour government have promised. I hope that your readers will make up their own minds which.
PH

***

That’s all for now except to sum up and say the smoke is starting to billow as far as the gold/silver market manipulation scandal is concerned. Yes, it probably will take more time than I think to go mainstream, but it is a scandal whose time has come.

===================================

Copyright (c) 1999 - 2012

Le Metropole Cafe, Inc.

Le Metropole Cafe is a subscription website. Visit and experience a 2-week Free Trial!

-- Posted Monday, 9 July 2012 | Digg This Article | Source: GoldSeek.com


Previous Articles by Bill Murphy


miracle 2

This page printed from: http://news.goldseek.com/LemetropoleCafe/1341831900.php

[Saguaro Kid]

Dress's are up, pants are down and everything is going in the hole! :afraid:

[KnowLaw]

Two more financial market experts add their voices to Jim Sinclair's prediction:

Greyerz - Gold to Hit $3,500 - $5,000 in 12 to 18 Months (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/13_Greyerz_-_Gold_to_Hit_%243%2C500_-_%245%2C000_in_12_to_18_Months.html)

A snippet:

“There is a fire in almost every country in Europe. The US is going to catch fire also. There will be a catalyst coming soon, probably some concerted action of QE or money printing between the Fed, IMF and the ECB. That will happen as a result of the economies, worldwide, collapsing.

“The printing of money will lead to collapsing currencies, and investors buying gold at any price.

“The effect of this is the paper markets will not be trusted. So people will rush into physical gold. I see gold reaching $3,500 to $5,000 in the next 12 to 18 months. Within 3 years, I see the gold price reaching at least $10,000.”

[Disclaimer: Of course, predictive time periods may be altered, depending on the Powers that Be and their timetable. Please be warned ahead of time these time windows are merely "best guess" scenarios by those making them.]

And:

Richard Russell: Inflate or Die (http://www.321gold.com/editorials/russell/russell071212.html)

A snippet:

Years ago I coined a phrase that described the US's predicament. The phrase was "inflate or die." As far as I'm concerned, inflate or die is even more to the point today...and here's why. The US possesses 8,133 tons of gold, or more than three times the amount of gold held by any other nation [Germany is second with 3,396 tons of gold].

Have you ever wondered why the US hangs onto its gold like grim death? And at the same time, the US talks down gold? Have you wondered why the US appears [like China] to be encouraging its citizens to buy, hold, and accumulate gold? Why is the US government distributing gold coins to Americans? Why did the US government come out with a new Buffalo solid gold coin and advertise that coin widely?

Why did Nixon slam shut the gold window when France wanted the debts that the US owed France to be paid in gold rather than dollars? Why did Nixon and company refuse to give up any more US gold?

The reason is that the top U.S. leaders knew that gold was our only true tangible money. A few of our most knowledgeable leaders distrusted the Federal Reserve notes that we, the U.S., were printing and buying goods from the rest of the word with.

This Russell piece is well worth paying attention to.

Enjoy! :s1: