Keiser Report: Markets! Finance! Scandal!

Max Keiser and co-host, Stacy Herbert, look at the scandals of silver shortages and quitting the dollar. In the second half of the show, Max Keiser talks to Paul Mladjenovic, author of Precious Metals for Dummies, about silver market manipulation.

The Rise In The Gold Price Isn't About Gold Itself

Since 2000, the gold price has risen from $300 to $1,400 an ounce. There are several more important reasons than its being 'just a commodity.' The strongest driving force behind gold's rise in the past four years has been investment demand. As a commodity, it doesn't tarnish, it's a great conductor, and makes good looking jewelry. But these reasons are not the reasons why people invest in gold.

When they do buy gold, they lock it away. When they do keep it close, they take it out only occasionally to look at it. Most gold is never looked at or ever seen by its owners. It is stuck in a vault below ground. So if gold is not used or admired, why was so much of it bought so as to make the gold price multiply more than four times over this century and why will so much be bought in the future so as to make it likely to multiply a few times more in the future?

In short, the gold price is not about gold, but what the investor believes it to be and the value he assigns to it. More than that, it is about the gold investor and what drives him.

REASONS TO INVEST

Investment requirements are different for different investors. In gold, there are three types of investors.

1. The first type is one who invests for profit. His aim is to buy low and sell high. He usually uses technicals [charts] and other similar tools to guide him to do this well. He will use currencies as his measuring rod. So to buy for $100 and sell for $200 would mean to make a 100% profit. The assumption is that the dollar's value will remain constant. Whereas, the reality is that when one buys gold, one sells the dollar and when one sells gold one buys the dollar [Remember that the writer of the dollar note stated that he trusts in God - which God?]. Nevertheless, since the last war the dollar, equities and the plethora of different investment instruments available to the U.S. investor have served the purpose of building up a store of wealth that can take care of him in his old age or be left to his heirs. The mindset of the developed world investor is to use his education and investment skills to build up profits to create his wealth. But more than that, he uses and implicitly trusts financial institutions to support his quest for wealth.

2. The second type of investor has the same eventual aim of creating wealth for his old age or to leave to his heirs. However the path to that wealth is not through the use of profits to create more, but primarily through his own separate endeavors taking profits from them and investing in a safe place such as property or gold--two assets that represent a store of wealth not associated with profits, but simply a recognized store of wealth that will retain its value throughout his life. More than that, he puts his wealth out of the reach of financial institutions and his government. 

3. The third type of investor is government, which is completely different today, in that it wants gold to sit in its reserves on a permanent basis, with no profit in mind at all. Government holds it for the best reason and that is to keep things going on the dark rainy days, when its own currency just won't do the job it should and to counter the swings in its other currency holdings. It is used as a measure of stability in its reserves and gold helps to get that. Apart from a 40 year courtship without gold at center stage, gold has always been internationally respected and valued as money. It is still, as the central banks now confirm, through the cessation of their gold sales and by those who are persistently buying irrespective of the price. It is the central banks alone that will ensure that the gold price will continue to rise, because it is not about gold itself, but about gold as money trusted internationally by people and governments.

The profiteer may well find the second investor's approach too simple, until he looks back over the last ten years and measures the growth of the value of gold against that of equities. The second type of investor usually comes from the world east of Europe, where corruption, changes of government and turmoil have left a people with little trust in institutions and a great deal of self-sufficiency. Until a few years ago the west could trumpet that their institutions were part and parcel of wealth creation. That is changing now. While the east has far less institutional cohesion as a result of their past, they have never lost their belief that gold is the real money. The west is headed back that way now. And the central banks are now either holders or buyers, but not sellers. Why?

WHY GOLD?

Gold is money in a crisis when nothing else can be trusted or relied on. It retains it value when enemies exchange it. It is an international asset. A man from China will value it as much as a man from South Africa or Canada. Its price is set in London and used in the far reaches of the earth. There are no unfulfilled obligations attached to it. It is free from all national restraints that come with paper cash. Today, most importantly it reflects no national economic fundamentals and is not under the control of any individual or group of nations. It is free of government! 

Nothing else fits that bill, nor will it. As we watch the gold price move like a flowing tide subject to the ebbing and flowing waves of price movements, we are intrigued that there are still so many commentators that believe it is a metal in a bull market that will inevitably be followed by a bear market. We do not subscribe to that opinion. We feel that mankind is moving back to a period of time marked by uncertainty, instability and a tremendous shift in world power, when debt obligations issued by individual governments, called currencies will have a relative value. Gold on the other hand, will reach the point where it will be an arbiter of value. Even the head of the World Bank has suggested that role. Despite the restraint it puts on all governments, the pressure we see ahead for the world will ensure that more and more people will come to consider gold as real money.

Julian Phillips
Saturday, November 27, 2010
www.goldforecaster.com
BENONI

Gold Imports Jump In India

Against all odds, and beating all market expectations, soaring gold prices in the international market which are reflected in the metal's price in India, have not daunted India's passion for the yellow metal. 

In the third quarter of this year, and given the onset of the festive season in India, gold imports crossed last year's total imports by almost 100 tonnes, to reach a new sizzling high - 624 tonnes. Traders and market analysts insist that the 750-tonne mark for imports is a sure-fire winner by the end of the year.

"In October, we exceeded the 2009 import levels. Consumer demand has been so high and continues to be, despite the high prevailing price of gold," said Manikbhai Dolakia, a bullion trader, operating out of Zaveri Bazaar in South Mumbai.

The jump is exciting, since even in early September, high prices of the yellow metal have hit India's September gold imports. However, heavy purchases by traders and manufacturers, ahead of the traditional gold-buying season, boosted overseas purchases to an all-time high, as compared with the 26.8 tonnes imported a month ago.

India is the world's largest importer and consumer of gold. Current high rates have actually led to a demand compression which, was reflected in the slowing of gold imports. The steady decline in the quantum import of the precious metal during the first six months of 2010, shows that inflows fell from 34 tonnes in January to 13.8 tonnes in June, with the trend broken only in April, when 34.2 tonne was imported, according to data gleaned from the Bombay Bullion Association. That was again to account for an auspicious date in May, when gold-buying is considered auspicious.

According to the World Gold Council's (WGC) Managing Director, Ajay Mitra, in 2009, total imports stood at 559 tonnes. However, in the third quarter of this calendar year, India bought 214 tonne of gold as compared to 176 tonne in the same quarter in 2009.He was speaking to mediapersons on the sidelines of an event held to release its latest report on gold demand trends in Q3, 2010. The WGC report notes that consumers have turned to gold to hedge their risks. 

"Real estate prices have been firming up for quite some time and this has driven consumers to seek out safer options. During the same period, (September quarter), gold consumption jumped 28 per cent. Did anyone say rising prices would pull this down," asked Mitra. The WGC report notes that in the third quarter, total domestic demand including jewellery and investment was 229.5 tonne against 179.6 tonne a year ago. This was despite the stunning 23% rise in the price of gold. India imported only 559 tonne of gold in 2009. "By September, we have tracked that domestic demand has risen by 79%," said Mitra.

Interestingly, investment demand in the first nine months also rose 108% to 136.9 tonne. Domestic demand during Q3 accounted for 25% of global demand, the WGC data showed, which stood at 922 tonne, up 12% from the September quarter last year. 

Global jewellery demand was up 8% driven by India , China, Russia and Turkey, and investment demand from the retail sector was up 25%. But all is not well in the Indian market. A senior official at IndusInd Bank, one of the banks permitted by the Reserve Bank of India to import gold, said the demand for the precious metal has been on a downward trend, post the festive season. He added that the quantum of gold imports shows volatility on a month-on-month basis. "Compared with a couple of years ago, the demand for gold is significantly down," said S. Sahane, the bank official.

The RBI has permitted certain banks to import bullion on consignment basis for domestic jewellers and exporters. Banks do not stock gold. Banks and agencies such as the MMTC account for nearly 80% of the gold imports. Another senior analyst at a Securities firm in Mumbai, Gopal Shah, said gold imports would slide due to high international prices and depreciation of the rupee. 

"Whatever we import is costlier now. So, our imports are lower. On the consumption side, demand may be less, but investment demand is still there because of the uncertainty in Europe. All the investors are keeping an eye on the contagion effect of Europe's debt crisis and the domino effect in Asia," he said.

As long as Ireland negotiates its rescue package with the European Union and the International Monetary Fund, the price of gold will jump higher in the international market. The skirmish between North and South Korea has also got investors pulling away from riskier bets in Asia and shifting toward the US dollar and gold.

Shivom Seth
Monday, November 29, 2010
www.mineweb.com
MUMBAI

Tom Woods on the Coming Collapse

New York Times best-selling author Tom Woods joins Gary Franchi on the Reality Report to discuss the state of the economy, QE2, a possible gold-backed currency, and the impending collapse.

Woods explains that entrepreneurs need to be freed up, as uncertainty from the government is preventing individuals from investing. He argues that increases in the money supply give off the phony appearance of prosperity and cause investors and entrepreneurs to start projects the economy can’t support in the long run.

Book of The Week: Crash Proof 2.0, How To Profit From the Economic Collapse

The economic and monetary disaster which seasoned Wall Street prognosticator Peter Schiff predicted is no longer hypothetical-it is here today. And nobody understands what to do in this situation better than the man who saw it coming. 

For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients restructure their portfolios to reflect his outlook. What he sees today is a nation facing an economic storm brought on by growing federal, personal, and corporate debt; too little savings; and a declining dollar.

Filled with in-depth insights and expert advice, Crash Proof 2.0 will help you survive and thrive during the coming years of economic uncertainty

Silver Prices Strongly Supported By Investment Demand

Since, Bart Chilton, the Commissioner at the CFTC, acknowledged that there has been price manipulation in the silver market, the price of silver has held relatively firm above the $25 an ounce level. However, I believe that the current price action, has little to do to with the commissioner's statement, and is merely reacting to current market conditions. And, as far as I am concerned, the main driving force for the rising prices of silver is due to increased investor demand.

Global investment, including coins, is set to rise to record levels this year, with the net value reaching roughly $4 billion. According to the US Mint, sales of US silver Eagles in November are already a whopping 3,775,000 ounces, bringing the total of silver eagles sold this year to 32,405,500 silver eagles. The total number of silver eagles sold last year was 28,766,500.  The Royal Canadian Mint recently said that silver-coin sales will jump more than 50 percent this year. The Perth Mint may match that gain, according to Ron Currie the sales and marketing director. "There seems to be more upside with silver than gold right now," said Currie.  According to the Perth Mint Silver-coin sales will climb as investors seek to protect their wealth from weakening currencies.

Even though it is sometimes referred to as "the poor man's gold," I believe that, over the next  few years, silver will make more money than gold for people prudent enough to own some.

Of all the silver mined over the past 5,000 years, more than 90% of it has been used up. It's gone forever. For many years, the U.S. government maintained a stockpile of silver. It held hundreds of millions of ounces in its inventory as one time silver was used to back up the US currency. Now they don't have one ounce and the number of silver eagles minted this year is approaching the level of all the silver produced in the USA. And, unlike gold, silver has a myriad of industrial applications.

Simple demand/supply dynamics of this market suggest that the price of silver should go much higher. Recently, world renowned silver expert, David Morgan in an interview with James Turk said. "We are so tight in the silver supply right now, almost every commercial bar that exists is held for one reason and for one reason only and that is investment purposes, not commercial use." According to Morgan any new demand for silver for commercial use, could really force prices higher due to the shortage of silver. "So any commercial use that comes on top of the investment purposes that already exist, is going to force the price not only higher, but it is going to force it higher now, because it is required for industry."

Recently, we have seen the gold/silver ratio drop from 68:1 in August this year to 52:1 by the beginning of November. As you know I have often referred to this ratio and while it is not a set formula we have seen it drop to more reasonable levels. However, I believe that we will soon see this ratio trade at 45:1. James Turk whose long-term view is that by 2013 to 2015 gold is going to be$ 8,000 an ounce and that the ratio is going to fall and go below 20. This would put the price of silver at $400 an ounce!

Personally, at this time, I have a more conservative outlook towards the silver price, but based on historic ratios, silver could easily triple from here and still be undervalued compared to gold. And, if silver simply matched its previous highs in inflation-adjusted dollars, it would be over $130 an ounce now.

I have long advocated accumulating physical gold and physical silver, because that's where you really want to be. You have exposure to the price and you also have money that hasn't got any counterparty risk, so you're not reliant on some promise of a bank, a central bank or something of that nature. But, do not be beguiled into believing that limited edition medallions offer better investment potential than bullion.

By:David Levenstein

He began trading silver through the LME in 1980, over the years he has dealt with gold, silver, platinum and palladium. He has traded and invested in bullion, bullion coins, mining shares, exchange traded funds, as well as futures for his personal account as well as for clients. www.lakeshoretrading.co.za 

THE MADNESS OF A LOST SOCIETY

Black Friday was indeed a dark day for America.

Gerald Celente on Goldseek Radio, Economy, Gold, Silver

Gerald Celente on KSFO with Brian Sussman, Economy, TSA

Keiser Report: Markets! Finance! Scandal!

This time Max Keiser and co-host, Stacy Herbert, look at the scandals of no exits and no jubilees. At least for the bottom 99.9%. In the second half of the show Max talks to Nicole Foss of the Automatic Earth blog about energy and peak credit.

Chris Martenson: UK Crash Course

Very useful and important information. A MUST for everyone.

Are Gold and Silver Prices on the Brink of Eruption?

By: Patrick Heller

In my September 16 column I listed several possible calamities that could eventually lead to sharply higher gold and silver prices. Shortly thereafter, the signal from the Federal Open Market Committee that it was planning additional inflation of the money supply (called quantitative easing) started prices upward. The FOMC formally detailed their inflation plan at the conclusion of their meeting on November 3.
If you look at the list of possible calamities in that column, you will see that none of them specifically have occurred—yet. However there are multiple major global problems on the brink of eruption right now that overlap parts of the list in my earlier column:

The government of Ireland is being bailed out by other European Union member nations, including the United Kingdom and Sweden (who are not participants in the Euro currency), to hold off the risk of a debt default. Investors are now worried that Portugal and even Spain will be next to need bailouts. Spain would be the largest economy of the Euro nations that could need help soon. Its potential financial woes would inflict more economic pain on the Euro than the recent troubles of Greece, Ireland, Iceland, and Portugal combined!
North Korea’s unprovoked attack on a South Korean island this morning, coupled with South Korea’s strong response, raised the specter of even more military conflict around the world.
JPMorgan Chase and HSBC now have at least 25 lawsuits filed against them alleging illegal gold and silver market manipulation. In particular, there may soon be a frenzy of demand for physical silver to try to cover the huge short sales on the COMEX.

Over this past weekend, The Wall Street Journal reported a widespread US government investigation of insider trading and market manipulation by investment advisers, investment bankers, hedge fund traders and analysts, and mutual fund traders and analysts. Yesterday, the Federal Bureau of Investigation raided the offices of three hedge funds as part of this investigation. The investigation had been rumored for months, but I had not previously seen enough confirming details to mention it earlier.

The US government sold some of its stock of General Motors this week, with the mainstream media reporting substantial disinformation. For instance, the US government was trying to claim that it may yet end up making a profit from bailing out GM, but only counting the outright direct bailout money. Including all the other forms of bailouts (such as transferring a huge chunk of the company’s retirement obligations on to taxpayers), General Motors has received more than $100 billion of aid. The sales of GM stock held by the government will only cover a small percentage of the total cost of the bailout. By the way, while I’m on the subject, it was quite surprising to see the Chinese wanting to overpay to invest $500 million in GM. Was there some backroom secret deal between the US and Chinese governments to get this “good news” to occur?

Last, but not least, the US government’s planned inflation of the US money supply has been clobbering the value of the US dollar. This has raised the fear of global currency wars, where major currencies will all lose value against gold and silver.

It would only take one or two of these or other major crises to result in soaring gold and silver prices. I had expected that gold and silver prices would be suppressed today going into the COMEX closes, as that marked the expiration of the latest round of COMEX gold and silver options. The North and South Korean troubles spooked investors, which kept gold prices mostly rising during US markets. The trading patterns look like the manipulators pretty much abandoned trying to use their resources to gun down gold, so they tried to double up in restraining silver. Unfortunately for them, that suppression was not very successful either.
With physical inventories continuing to tighten, I still think there is a decent prospect that the price of silver may end the month above $30. Even if this turns out to be premature, I expect to see silver at that price level before long.

The Day the Dollar Died

The first 12 hours of a U.S. dollar collapse!

Tarpley: US using Korea to make money

North Korea and South Korea exchanged artillery fire yesterday. All the while the United States dollar has strengthened as bad blood between North and South Korea means big business for the US.

Investigative journalist Webster Tarpley says the financial district is taking part in a flight to safety moving money in the US treasury, using North Korea as a catalyst to make other nations depend on the US.

Jim Rogers: If There Is War, Commodities Go Up In War.

Jim Rogers:

If there is war, [America] is going to print money. If there is not war, they are going to print money and so whenever there has been money printing, the result has been that you should have your money in real assets.

It has been a pretty clear thing throughout history. The real assets are the only way to protect yourself. Real assets are basically the only way to protect yourself in time of war.

So in my view whatever happens, if the world economy gets better, commodities are going to be good because of the shortages developing. If there is war, commodities go up in war. If there is peace and there is not going to be an economic recovery for governments, they are going to print even more money, it is the western government. So depending on how things work out tonight, I would probably use this opportunity to jump in and buy more commodities.

Gerald Celente: Fascism has come to America

Gerald talks about TSA, Economy, and geopolitical situation around the world

Keiser Report on Silver Revolt: 'Crash JP Morgan' Goes Viral!

This time, Max Keiser and co-host Stacy Herbert look at videos from the "Crash JP Morgan, Buy Silver" viral campaign. They also discuss whether "My father is Li Gang" is any less corrupt than "My Uncle is Sam", as mortgage holders go postal and regulators tell us to "batten down the hatches". In the second half of the show, Max talks to financial journalist Teri Buhl about Ambac's lawsuit against JP Morgan.

The case JP Morgan is trying to seal was filed by New York law firm Patterson Belknap Webb & Tyler for Ambac Assurance. To learn more about how JP Morgan is trying to cover up the alleged fraudulent practices of EMC (a wholly owned sub-company) and the Bear Stearns residential mortgage bonds it now responsible for: Look for Nick Verbitsky of Blue Chip Films upcoming documentary film 'Confidence Game'.

Modern Banking: Creating Booms and Busts

Presented by Doug French at "Economics in One Lesson: A Seminar for High School Students," 19 November 2010 in Auburn, Alabama. Sponsored by Anastasia Thiele.

Marc Faber: Chinese correction - US in Depression!

Faber believes China has a property bubble, but the whole economy may not go into recession. Some sectors may still expand, says Faber. He thinks inflation is a dangerous situation worldwide. China and the US are on a collision course both economically and politically, Faber argues. He doesn’t think the US stock market will reach a new high in the near term.

Weekend Humor: Quantitative Easing Explained

What the Federal Reserve is up to, and how we got here.
I called it a humor but its actually very true and real.

Interview with Ted Butler: The End of Silver Price Manipulation

2010 has been an exceptional year for silver. The price has increased over 50% to-date, and the CFTC (the US commodity regulatory body) issued a statement last month admitting that the market price of silver may have been (and still may be) fraudulently manipulated. An investigation is underway.

Ted Butler is one of the pre-eminent commentators on the silver market. In addition to his decades following the metal, he's spent years raising suspicions about silver’s suppression by a few large banks taking on egregiously large short positions. The current CFTC action is a direct result of Ted’s activism.

In the podcast below, Chris Martenson conducted an in-depth interview with Ted focusing on the most important aspects that anyone interested in silver needs to know now. In short, Ted predicts the imminent end to the manipulation will ultimately send the price higher - much higher.

The podcast covers:

• Why silver has such a compelling value story
• The coming silver supply crunch
• The argument behind the allegations of silver price manipulation
• Drivers behind the recent price action in silver
• Why price volatility will increase
• The expected outcome of the CFTC’s investigation and why Ted thinks it will be "a bombshell for the silver market"

Silver-Coin Sales May Surge 50% in 2010 as Demand Rises, Canada Mint Says

Nov.18(Bloomberg)

Canada’s sales of silver coins will jump more than 50 percent this year and will continue to climb in 2011, said David Madge, the director of sales at the Royal Canadian Mint.

“Sales of silver coins for 2010 are very strong and we expect them to be at least 50 percent higher,” Madge said in an e-mail, declining to give a forecast for this year’s sales. The Ottawa-based mint sold 10.3 million ounces of coins in 2009, he said.

Silver futures have jumped 59 percent in New York this year as demand rose for precious metals as an alternative to currencies. Investors have bought coins “because they are cheap,” and are helping to support the price of the metal, Francisco Blanch, the head of commodity research at Bank of America Merrill Lynch, said today at a conference in New York.

In October, the mint boosted its premium on coins to $2 per ounce, from $1.50 because of increased production costs, Madge said. 

“We have not seen a decline in demand,” after the premiums increased for Silver Maple Leaf coins, Madge said. 

Silver futures for December delivery rose $1.323, or 5.2 percent, to $26.834 an ounce on the Comex in New York today. Last week, the metal reached a 30-year high of $29.34.

Gold Price Correction? Back Up the Gold Truck!

Gold and silver have had a torrid few days, with gold down over 6% from its peak at one time and silver, living up to its reputation for greater volatility on the way up and on the way down, fell over 13%. The market has probably not been helped by even a number of pro-gold analysts predicting a correction, but in reality has anything really changed? Is this the bursting of the bubble beloved by many commentators, or is it just a blip in the ongoing bull run? 

In assessing the situation, let's start with a quote from Bill Bonner at The Daily Reckoning.

"Gold is probably beginning a serious correction. If not now... soon. - A serious correction will take the price down 10%... or 20%... or 50%.

What should you do if gold goes down 10%? Buy it!

And what if it goes down another 10%? Buy more!

And what if it goes down 50%? Back up the truck!"

 

One doubts, however, that the truck backing-up opportunity will arise - at least for a long time yet. The smart money out there knows that the fundamental flaws in the global economic system - and in the so-called remedies put out by politicians and some economists - remain with us and are likely to do so for some time. Every time the gold market has slipped back in the past year or so it has rapidly climbed back to exceed the level from which the fallback started - one step back followed by two steps forward. This surely is sufficient indication that there is a huge amount of buying strength out there for gold - and even the waverers are now beginning to return, which should give another boost to the price going forward. India for example has seen a return to gold purchases in a big way, despite the ever-higher gold price which had muted demand there. There is beginning to be an acceptance that perhaps say $1300 is the new floor - and the only way now is up.

But the gold market can be fickle. Only a few weeks ago gold was surging, apparently because of worries about Eurozone economies. But now gold is falling despite the reality of the latest financial worries in Greece, where the budget deficit is far worse than previously estimated, and in Ireland which is facing a serious financial crisis and may need a European Central Bank or IMF bailout to ward off a default. This is bringing Eurozone economic worries back to the fore, while U.S. state deficits, which may prove to be even worse than those faced by the Europeans, have managed to remain low on the horizon, but will surely impact on markets before too long.

But the fundamentals supporting the precious metals are still in place. One should perhaps be far more nervous with regard to industrial metals and the stock markets in general. People are worried about China's inflation and possible interest rate rises which could put a crimp in demand. If there is another stock market crash ahead - and there are a number who have been predicting that for some time now - gold will likely continue to fall back too, just as it did in October 2008. But what was the first to recover all its lost ground? Gold. Not gold stocks which were decimated with all the others in the general meltdown, but gold itself. Gold stocks have since followed suit of course, but many are still trading way below their all-time highs. We could well be facing an unhappy Christmas season in the markets. If the general market downturn continues, whatever confidence there is out there could dwindle and the dreaded double dip recession would quickly be with us. All prices would likely suffer, but again one should probably bet on gold to pull itself out of the mire first and strongest.

By:Lawrence Williams
Wednesday, November 17, 2010
www.mineweb.com

U.S. Bond Bubble Ready to Burst While the World Focuses Attention Elsewhere

G.Celente: America is Turning Into One Gigantic Hellhole!

Peter Schiff: Fed Waging War

A currency war is brewing but who is the greatest offender is when it comes to currency manipulation? Peter Schiff, president of Euro Pacific Capital says it was the US that fired the first round. He explains why he calls this the monetary equivalent of a nuclear war.

Keiser Report: 'Crash JP Morgan' Special

96th Episode is a special 'Crash JP Morgan' edition of the Keiser Report. This time Max Keiser and co-host, Stacy Herbert, look at the call from Eric Cantona to withdraw money from the banks and at the viral 'Crash JP Morgan Buy Silver' campaign by Max Keiser. In the second half of the show Max talks to Alex Jones about Google bombs, naked body scanners and 'Crash JP Morgan Buy Silver'.

G.Celente: Currency Wars + Trade Wars = Real Wars

Britain says it's ready to help debt-hit Ireland with billions of pounds of direct loans. At a meeting of European finance ministers, Chancellor George Osborne said it's in the UK's interest to support its closest neighbour. The meeting comes amid fresh market turmoil and fears some smaller economies like Portugal and Ireland are unable to service their massive debts. The E.U. President warned the Eurozone is actually facing a fight to survive. Trend forecaster Gerald Celente says the euro has been put to its greatest test ever.

Book of The Week: The Creature from Jekyll Island

Have I got a book for you! You think you know all about money? Well, so did I - until I started reading The Creature from Jekyll Island; A Second Look at the Federal Reserve, by G. Edward Griffin. Sure, I had a good working knowledge of how our banking system functions and how money is created out of nothing to make loans, but I was blown away by the magnitude of the scam as it has evolved over the years. What a wild ride through history this is as the author reveals where money comes from, where it goes, and who makes it. The money magicians' secrets are unveiled, and you will get a close look at their mirrors and smoke machines, their pulleys, cogs, and wheels that create the grand illusion called money. A dry and boring subject? Just wait! You'll be hooked in five minutes. Reads like a detective story - which it really is. But it's all true: the cause of wars, boom-bust cycles, inflation, depression, prosperity. Your world view will definitely change.

Famed Nassim Taleb Has Some Surprising Words For The Fed

Nassim Taleb: "The Fed's Business Is Price Instability"

Global Gold Demand to Glitter in 2010 on India, China Buys

Global consumption of gold in 2010 will be higher than in 2009 because of growing consumption in India and China, said World Gold Council (WGC) in a report on Wednesday.

According to WGC's Gold Demand Trends report for Q3 2010, rising income levels, high savings rates and strong economic growth in India and China would push up demand for the yellow precious metal in first half of 2010.

Gold jewellery demand is likely to exceed that of 2009 due to an anticipated recovery in India, the most significant gold jewellery market, and continuing strength in China. While jewellery demand may face challenges ahead, the latest figures show that demand in key markets has shown resilience in the face of higher prices levels.

Among other factors, concern over fiscal imbalances and currency tensions will continue to support investment demand for gold, WGC said. Apart from the recent additional $600 billion of quantitative easing by the US, the weakening of the US dollar and associated fears of inflation, demand for the precious yellow metal is also likely to be driven by higher price expectations, as well as increasing availability and accessibility of gold investment products to retail investors.

The third factor which is expected to propel gold demand is industrial demand, which has returned to long-term levels, is expected to remain firm on the back of renewed growth in the electronics industry, due to the majority of semi-conductors being wired by gold.

Total gold demand was 922 tonne in Q3 2010, an increase of 12% from Q3 2009.

In dollar value terms, demand grew 43% to $36.4 billion over the same period. Demand for gold jewellery increased by 8% from Q3 2009, with four of the best performing markets - India, China, Russia and Turkey - accounting for 63% of global demand. In value terms, global demand for the 12-month period ending September 2010 hit a record $137.5 billion. Retail investment rose 25% from Q3 2009 to 243 tonne in Q3 2010. The largest contribution to total demand growth came from bar hoarding, which increased 44% from the previous year.

The total value of net retail investments during the quarter was a record $9.6 billion, representing a 60% increase from Q3 2009.

By fe Bureau for yahoo finance 

Euro Under Siege After Portugal Hits Panic Button

The euro is facing an unprecedented crisis after another country indicated that it was at a “high risk” of requiring an international bail-out.

Portugal became the latest European nation to suggest it was on the brink of seeking help from Brussels after Ireland confirmed it had begun preliminary talks over its debt problems.

Greece also disclosed yesterday that its economic problems are even worse than previously thought. Last night, the German Chancellor Angela Merkel raised the specter of the euro collapsing as she warned: “If the euro fails, then Europe fails.”

European finance ministers will meet in Brussels tomorrow to begin discussions over a new European stability plan that is expected to lead to billions of pounds offered to Ireland, Portugal and possibly even Spain. 

David Cameron said he was thankful that Britain had not joined the euro, but indicated his displeasure that taxpayers in this country faced a £7 billion liability in any bail-out package. 

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Ireland has resisted growing international pressure to accept EU financial assistance amid concerns that this would lead to a surrender of political and economic sovereignty. However, the German government is expected to signal today that Ireland may have to accept a £77 billion bail-out, along with a loss of economic and political independence, as the price of preserving the euro. Mrs Merkel said the single currency was “the glue that holds Europe together”. 

Her words came as fellow euro zone members Portugal and Spain rounded on Ireland. They fear that international concerns over the euro will lead to so-called market contagion spreading to them.

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Little trust in Banks/ ETF's: Weathly go for physical Gold

Bearish trustees dig deep for gold and diamonds

Last week the price of gold broke records, passing $1,400 per ounce, up 25% so far this year. But, for some, investing in gold through exchange-traded funds and other products is not safe enough. They crave physical gold.

Iain Tait, partner at UK wealth adviser London & Capital, received requests from separate trustees in Jersey and Guernsey for physical diamonds and gold bars last week. He said: “There is the feeling that ETFs are the home of the speculator while bars and real diamonds are the domain of wealthy families trying to protect themselves.”

A lawsuit filed last week against global banks JP Morgan and HSBC by investors in the US, over an alleged conspiracy to manipulate the market for silver futures, was the latest news to take the shine off the gold derivatives industry, wealth managers said. JP Morgan did not return calls for comment. HSBC declined to comment.According to the World Gold Council, global demand for gold bars climbed by a third between the second quarter of 2009 and the same period this year, while demand for gold ETFs and similar products rocketed 414%.

Fearing the precious metal is in danger of over-reaching itself after its big gains this year, some warn gold is approaching bubble territory. Andrew Thompson, Kleinwort Benson’s head of advisory portfolio management, said: “In the short term, gold is looking ‘overbought’ and some sort of correction is all but inevitable. If it does form a bubble it will burst, as bubbles do.”

By Mark Leibovit  for Money Talks 

Max Keiser: Irish govt slaves to IMF terror machine!

If Europe's single currency fails, so would the Union itself. The warning comes from the EU president, who was speaking ahead of the meeting of the Eurozone's finance ministers. Portugal has warned it could be forced out of the Eurozone, and Ireland is also being urged to use European bailout money to prevent bankruptcy. But Financial analyst Max Keiser says going to the IMF for help would be even worse...

Jim Rogers: If You Want To Make A Fortune, Don`t Get An MBA.

"The power is shifting again from the financial centers to the producers of real goods. The place to be is in commodities, raw materials, natural resources.

Don’t go to Harvard Business School. If you want to make fortunes and come back and donate large sums of money to Balliol you’re not going to do it if you get an MBA.”

 

Why Oil Could Top $100 a Barrel

Oil prices have hovered around $78 a barrel most of the year, providing little excitement as other commodities, including copper, gold, and cotton, have enjoyed record runups. Global economic growth has not been brisk enough to drive up oil demand substantially, U.S. inventories have been ample, and the Saudis have been pumping enough to guarantee a plentiful supply.

A change in the oil markets may now be upon us. Crude may climb past $100 next year as central banks pump cash into their economies to revive growth, predict JPMorgan Chase and Bank of America Merrill Lynch. The Federal Reserve's decision to buy $600 billion of Treasuries from commercial banks should lower U.S. interest rates and weaken the dollar further. Investors may turn increasingly to oil and other commodities to get a decent return.

The Federal Reserve's actions are "likely to push prices upwards," says Antoine M. Halff, head of energy research at Newedge USA in New York and former principal administrator at the International Energy Agency. "The past few years have shown that the more cheap money in the system, the more money flows into commodities, in particular energy." Since the start of September, oil prices have climbed 17 percent, to a recent $86.96. 

After several years in the doldrums, oil prices are creeping upward. Some analysts are projecting prices at $100 a barrel by next year.

By Mark Shenk and Grant Smith

Bloomberg Businessweek

How Wall Street Manipulates Food Prices Around the Globe

Is Food the Next Bubble?
As food prices are on the rise - will Wall Street jumps in the game again? After all - what else are they going to do with their billions?

China's Economy: Start Learning Chinese

According to the Economic Research Association China will overtake the US as the world's biggest economy by 2012, or within two years. China passed a stimulus package about the same time and the same size as the US, and spent it on buying Chinese-made products. American stimulus funds essentially ended up in China, as well.

CRASH JP MORGAN Buy Silver - Gold & Silver Manipulation

Gold and silver are being suppressed by a cabal of banks in order to uphold the charade of a strong US dollar. This manipulation is unsustainable and is coming to an end. Prepare for a scramble to own physical gold & silver as the wheels come off this gross deception. The free market always wins. Please take the time to research this information for yourself.

END THE FED!

Following last week announcement of QE2, China's leading credit agency downgraded the US.

China Vice finance minister said: "The Fed's move doesn't take into account the effect of this excessive liquidity on emerging market economies."

Brazil president elect: "The last time there was a competitive devaluation of currencies it ended up where it did in the second world war."

The finance minister in Euro zone said: " I don't think its a good decision. You are fighting debt with more debt".

Since the creation of Federal reserve, US dollar has lost 97% of its value.

Is capitalism organized crime?

Socialism has been over for two decades since the fall of the Berlin Wall, a time that the United States holds as a symbol of victory over socialism. In the United States there is growing concern that only a certain few control all the wealth, denying many Americans a chance for a better life. Will a new generation of Americans seek out a socialist society?

Military spending, collapse of US empire

The military industrial complex continues to rev its engine even as the US economy continues to struggle. Pro-defense Republicans are already shouting to use their party's newfound legislative power to boost the Pentagon budget. Paul Craig Roberts points out that the government only cares about the military industrial complex and lacks compassion for its people.

Max Keiser Report: Markets! Finance! Scandal!

This time Max Keiser and co-host, Stacy Herbert, look at the scandals of Americas economic Suez and neutering Iran. In the second half of the show Max talks to rare earths analyst, Kevin Kerr, about the state of this market controlled by China.

Bob Chapman's Friday Economic Report: Bernanke on a Suicide Mission

Alex talks with regular Friday guest Bob Chapman of the International Forecaster about the economy,G20 and other news items.

Why You Should Own Some Silver – As Well As Gold

Gold is the money of Monarchs,

Silver is the money of Gentlemen,

Barter is the money of Peasants, and

Debt is the money of Slaves.

Both gold and silver have been used as money since forever.  Historically, the price of gold has almost always been greater than that of silver.  This is because silver is somewhere around ten to twenty times more plentiful in nature.   Does this mean that we should only hold gold?  I say no for the following reasons:

• you get more (metal) for your money holding silver. 

• the price of silver has more room to appreciate, both because of its relative low price and because of the current relatively high silver:gold price ratio.

Does this mean we should only hold silver?  I say no again.  Gold is highly recognizable, highly desired, and coveted in all societies.  Most world governments and central banks hold gold but virtually no silver, save a few notable exceptions (Russia, China, and India).  They know that gold is the ultimate money.  Just as you would diversify your portfolio among asset classes and large/small cap stocks, etc., so too should you diversity between gold and silver.  No one knows which will appreciate faster or further and be the superior investment going forward. 

Silver has three huge attributes or qualities that make it special, valuable, and unlike any other metal: its versatility, its in-elasticity, and its duality.

By versatility I mean that silver has many and varied important uses where it is the best solution.  It is either the best material to use for a given application or it is the least expensive of all the alternatives.

By  in-elasticity I mean that more silver is not produced as price increases because most silver comes from other-than-silver mines, and less is not consumed as the price increases because there are no less-expensive alternatives.

By duality I mean that silver has the potential to do well price-wise in both an up and a down economy.  Being both an industrial metal as well as money in and of itself, silver tends to have a market no matter the condition of the economy.

These three characteristics make silver unique among the metals and thus valuable in that uniqueness.

For the complete article please click Here

Words not Deeds? G20 Calls Currency War Time-Out

The world's richest economies have agreed to try and prevent currency wars, so as not to stifle the much-needed global economic recovery. But experts say it's more of a ceasefire than a solution, as tensions simmer between the U.S. and the major exporters such as China and Germany. Anissa Naouai's has more from Seoul.

Jim Rogers: China earned its success, G20 waste of time

RT talks to author, financial commentator and investor Jim Rogers about US-China currency war and G20.

Money, Banking and the Federal Reserve

Thomas Jefferson and Andrew Jackson understood "The Monster". But to most Americans today, Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.

Alan Greenspan is not, we're told, happy about this 42-minute blockbuster. Watch it, and you'll understand why. This is economics and history as they are meant to be: fascinating, informative, and motivating. This movie could change America.

WSJ Report: U.S., S.Korea Down to Wire on Trade

The U.S. and South Korea pushed past their original deadline to try and clinch a free-trade deal as President Obama attended the G-20 meeting in Seoul. Evan Ramstad and John Bussey discuss. Also, Clyde V. Prestowitz Jr. discusses the increase in trade tensions over whether the U.S. has devalued the dollar to boost its competitiveness.

G.Celente:WW2 Scenario is Being Setup for Next War

Trends expert Gerald Celente talks with RT about the bailout bubble which began under the Bush administration and has accelerated under the Obama administration.

"You have the blindsided, the stupid, and the incompetent telling us what to do next. They’re ruining the country. They’re devaluing the dollar. They’re driving the country into poverty and they’re causing a trade war."

Glenn Beck claims the left is “setting up another Oklahoma City,”

When Bernanke Speaks, Silver Listens

On August 27^th, 2010, U.S. Federal Reserve Chair Ben Bernanke gave a speech on the economic outlook and monetary policy—remarks that, as always when the Fed Chair speaks, had an impact on the markets.

As seen in the chart below, on August 27, silver closed at approximately $19.09 per ounce, up a mere $0.17 from the previous day. By comparing today’s price of  $27, it is clear that when Bernanke speaks, silver listens.

But what did Bernanke say that sent silver prices on a stairway to heaven? His remarks made it clear that fiscal policy alone could not get this economy out of its rut; rather, monetary policy—increased spending in the form of quantitative easing—would be necessary. The Fed’s fear of deflation is so bad that it has announced its willingness to continue increasing the currency supply, even at risk of serious inflation. But many individual and institutional investors and foreign governments recognize the pitfalls of expanding the currency supply. Seeking a safe store of wealth against rapidly depreciating currencies, they turned to silver, and silver prices skyrocketed.

One thing Bernanke said was pure genius: “Central bankers alone cannot solve the world's economic problems.” Given that it was the bankers who got us into this mess in the first place, Bernanke hit the nail on the head with that one. As rising silver (and gold) prices indicate, people are figuring out they need to take matters into their own hands to protect their wealth, rather than expecting the government and central bankers to do it for them.

By:

Michael Maloney

Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future
Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money

So Long, Dollar

Every day the US Dollar moves closer to collapse. International investors, unlike most Americans, are aware of the risk, and are nervously watching Gold and Silver march higher. As the primary reserve asset on central bank balance sheets, the US Dollar is a major risk for central banks and their solvency. How will central banks deal with this balance sheet risk?

First, it is clear that no central bank can sell Dollars and buy their own fiat money which is a balance sheet liability. If they did, it would be a direct deflation of their banking reserves and highly disruptive to their own domestic credit system. Therefore, a central bank must sell dollars for anything but their respective currency. For example, we recently witnessed China buying Japanese JGBs. This creates a potentially very chaotic condition for markets. US dollars may at any moment move very quickly from storage on central bank balance sheets into the global economy chasing anything and everything capable of being a reserve asset. The dollar's velocity would be very likely to spin ever higher as buyers and sellers toss it back and forth like a hot potato.

The effect of the Dollar repudiation US Treasury bond prices will be extremely negative. QE II is an attempt by the Fed to get ahead of any Dollar selling to stabilize long-term interest rates.We are already seeing sovereign debt prices collapse in Ireland, Portugal, and Greece. The factors pushing up yields in those countries exist in the US, UK, Spain, and Japan. However, any attempt to cap yields will just tend to push rates higher.

As the dollar falls, the asset side of central banks will be falling in value, too. This will pressure a dollar heavy central bank's solvency. How will Japan respond? Will they panic and begin adding Yen assets? If so, that will inject base money into the Japanese fractional reserve banking system and be wildly inflationary. What about the other Asian central banks? They all have balance sheets loaded with dollar assets. If they begin purchasing assets in their respective currencies, massive inflation will break out in their economies, too. What about Gold and Silver? On a net basis, central banks can not increase their gold or silver reserves. Quite simply, there is not any way of increasing supply in a meaningful way. The next big risk is how will international trade be settled? If India and China no longer want dollars, how will they settle trade? The Indians will surely not want to grant the Chinese the luxury of settling in Yuan, nor will the Chinese want to grant India the luxury of settling in Rupee.

What about Russia/China trade? Or Japan/Saudi trade? The IMF, controlled by the US, will likely suggest SDRs. SDRs are too dollar centric and esoteric to be accepted internationally. Trade must be settled and mutually beneficial or it will not happen. Without trade global economies will collapse. This is the biggest risk of all, and it must be addressed immediately. Gold is the only commodity that can fill the void that the collapse of the dollar will create. The Dollar stole Gold's historic role as money at Bretton Woods, and only Gold can replace the dollar in international trade. The unique conditions created by World War II facilitated the rise of the Dollar. Those initial conditions will never be replicated for the US or any other Nation.

By:

Jeff Fisher

November 10, 2010 

www.lewrockwell.com

A Few Notes On Successful Investing.

"Successful investing means getting in early, when things are cheap, when everything is distressed when everyone is demoralized. To make a killing, you really need to get in during a time of dispair."

"I have found in life, it's better to be a contrarian than not be."

"It will end in a bubble. Someday there will be a huge bubble in gold. Someday you will walk down the street in New York or Minneapolis, people will be buying gold all over the place. Then you sell. It will end in a bubble, they always do."

Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.

US Midterm Election: Battle of the Billionaires

The ballots have been cast, the polls have closed and the Republicans have retaken the House. But the 2010 Midterm Elections were the most expensive in history, and the money isn't going anywhere.

On the right, billionaire David Koch and Rupert Murdoch's News Corporation fuel the Tea Party. And on the left, General ElectricViacom gave President Barack Obama a commercial-free, hour-long town hall across its networks. And while Republicans and Democrats come and go in Congress, Wall Street's interests are just too big to lose.

Trump: China Will 'Destroy' Our Country

Dire warning from Donald Trump

Currency Wars: US to send tsunami of printed money

Business leaders across the world are continuing to lash out at the US decision to print an additional 600 billion dollars in new stimulus money. Central bankers and economists warn of inflation, new bubbles and hot money inflows. And Russia could be on the receiving end of them all - as Tatiana Polyakova reports.

Gerald Celente on elections and QEII

Webster Tarpley: The Next Decade

Author Webster Tarpley goes into detail on a whole host of historical, financial and geopolitical issues in a bid to outline the major crises, revolutions and wars that will hit the globe over the next decade and shape the future of our world.

Moving on to how these elitists use the financial system to further their aims, Tarpley explains how the move towards a global currency and worldwide financial regulations is being advanced by the IMF, but how nations are now rejecting this "Washington Consensus," and instead adopting the "Beijing Consensus," which allows them to retain control over their own national sovereignty. Tarpley says that the dollar as the world reserve currency is toast and that it is set to be replaced by a synthetic imperialist global currency called the Bancor. Tarpley warns that the IMF dictatorship is now in the final stages of asset stripping the United States.