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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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So-Called Audit Of Fed’s Gold Complete Rubbish & Propaganda

So-Called Audit Of Fed’s Gold Complete Rubbish & Propaganda | Gold and What Moves it. | Scoop.it

Today James Turk told King World News that the so-called audit of the Fed’s New York gold “is total rubbish.”  He also described this stunning situation as “disinformation or propaganda.”  The is the first of a series of written interviews with Turk regarding this incredible development. 

 

Eric King:  “James, I have to talk to you about this news about the audit of the Fed’s New York gold.  What were your thoughts when you read that?”


Turk:  “I saw the news reports and it sounded very interesting.  So I thought I would look into it and see exactly what was there, what they completed, and what kind of audit it was.  I went into the Treasury website and actually read the Treasury announcement.  


I’m really sort of sad to say that despite my thinking this was some interesting news, it actually is total rubbish.  I think it was disseminated by the mainstream media just to deceive people (and countries) to think that the gold is really there....

Hal's insight:

Glad to hear Turk's opinion on this. I saw the artcle this morning too and was like, Really?! But then I saw that they only tested a slim amount.

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There Is No Way… « Jim Sinclair's Mineset

My Dear Friends,


There is no way that any entity, be it private, public or both, is going to manipulate away the debt situation faced today. 

 

There is no way that the US is going to become a net exporter of energy in amounts that could even slow down this rate of growth in the debt. 

 

There is no way this flat line recovery is going to turn into a boom in business. 

 

There is no way that the unemployment figures are going to have a sustained improvement short of all the unemployed giving up hope and shifting to the underemployed list. 

 

There is no way that you can set such records in increased liquidity and not have explosion inflation regardless of business activity. 

 

There is no way that the Fed can liquidate its holdings of treasuries in an orderly manner without collapsing the Treasury market. 

 

There is no way the Fed can liquidate any toxic paper it took on from banks internationally in the crisis of 2008. 

 

There is no way the Fed can step away from QE which would mean higher interest rates without collapsing the flat line so called economic recovery. 

 

There is no way any human being could answer thousands of emails that are now overwhelming me.

 

I am deeply grateful for those CIGA around the world that browse for me, helping me keep in present time with all the unfolding monetary matters globally.

 

Whiners need only read the opening here to know that this is a passing but well constructed manipulative cloud. Those that are trying simply to frustrate me by sending emails cursing my genes that I was born are simply wasting their time and entering the spam blocker.

 

There is however a take away from this. Last night was the first time I went to sleep with a long list of incoming emails. I have no one to help me with emails because only I can answer them. For the first time, I must tell you that other than corporate emails I can no longer promise you prompt or even answers. I have a company to run, and that is my first order of business and that has always been and is my first order of business.

 

Sincerely, 
Jim

Hal's insight:

You won't find me in disagreement.

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Gold lacklustre awaits FOMC statement

Gold lacklustre awaits FOMC statement | Gold and What Moves it. | Scoop.it
PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target.

 

By Robert Jillies
PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target. In addition, he mentioned that the fiscal spending will not be forever and that once growth and inflation is attained then raising taxes will be viable.

Meanwhile, bond traders are worried that the Fed may cut short QE program as early as the end of 2013 which could indicate a possible rise in interest rate to curb potential rise in inflation. This argument is based on the latest media frenzy that the US economy is on the road to recovery. Such argument is also boosted by a better economic data from the Euro zone as well as verbal confirmation from European leaders that they are out of the crisis.

In addition, China better than expected GDP numbers lend a hand to the current optimistic equities market. However, is this optimism a sustainable one? ...

Hal's insight:

Click through from the analysis on gold and silver.

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Charles Hugh Smith: Money Velocity Free-Fall and Federal Deficit Spending

Charles Hugh Smith: Money Velocity Free-Fall and Federal Deficit Spending | Gold and What Moves it. | Scoop.it

The velocity of money is in free-fall, and borrowing, squandering and printing trillions of dollars to prop up a diminishing-return Status Quo won't reverse that historic collapse.


Courtesy of Chartist Friend from Pittsburgh, here are three charts overlaying the velocity of money and the Federal surplus/deficit. The charts display the three common measures of money: M1, M2 and MZM. From the St. Louis Federal Reserve site: 
M1 includes funds that are readily accessible for spending. M1 consists of: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs). 

 

M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs). 

 

Money Zero Maturity (MZM) is M2 less small-denomination time deposits plus institutional money funds.

 

The correlation of deficit spending and money velocity is especially striking in the chart of M2 velocity. ...
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Click through for the full post and the charts.

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James Turk - Germany’s Gold Is Being Held Hostage

James Turk - Germany’s Gold Is Being Held Hostage | Gold and What Moves it. | Scoop.it

Today James Turk told King World News that the German gold is being held hostage by the Fed.  Turk also believes that one portion of the Bundesbank’s press release was particularly misleading.  Turk reveals the reality of what is taking place with Germany’s gold, and it’s not what the mainstream media and the Bundesbank are telling people. 


Here is what Turk had to say in this extraordinary interview:  “It’s quite clear that the German gold is being held hostage.  They are not getting what they want.  They are getting what the Federal Reserve is telling them they can have.  The fact that they are doing it over 7 years rather than 7 weeks, is just an indication that gold probably isn’t in the Federal Reserve, and the Federal Reserve doesn’t want to have to go out and buy it overnight to fulfill the German demand.  They are trying to stretch it out as long as possible in order to keep gold prices controlled.” ...

Hal's insight:

Fascinating, isn't it? Seven years. That's surprising to me and should send up warning flags to everyone, and adds color to why the FED doesn't want to audit the gold. Click over for the rest of Turk's interview.

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Federally Assistance Or Just A Hedge Fund? « Jim Sinclair's Mineset

My Dear Friends,


The early morning operation took place today taking gold off the $1704 level. Many of us are convinced that what we are seeing has Federal assistance. That means to us that the Fed is lending gold to the gold banks to facilitate the operation. Because of that there is a fear of taking on the operation.

 

I got a call last evening from a friend in the huge private hedge managed money telling me that we have all been bamboozled. The size of hedge funds today can easily mimic what would be considered Federally sponsored. The Fed is quite pleased, but is not the infinite power behind the bear operation that started at $1800.

 

It is a wild man/women with very big, but not infinite funds that is operating the gold market. That which the longs fear is air, and nothing more than a major huge hedge fund operation.

 

It is certainly is worth considering. Apple is not off from $750 on its own power. Herbalife did not drop off its recent high without significant help.

 

In another life at 35 years old I did similar things on the long side. I used banks common then to the Middle East to run gold hard on the upside. I even hired an actor to dress up like a Saudi Sheik. I hired armed private guards. I hired a stretch limo. Nobody knew it was a spoof except the actor, myself and my partner . We arranged ...

Hal's insight:

Read this missive from Jim Sinclair carefully, folks. Click through for the full piece.

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John Hathaway - 2 Key Charts, Gold, Fed & The Big Picture

John Hathaway - 2 Key Charts, Gold, Fed & The Big Picture | Gold and What Moves it. | Scoop.it

January 10 (King World News) - The bull market in gold remains intact.  The metal rose approximately 7.14% in 2012 in U.S. dollar terms and has increased in each of the last 12 years.  Negative real interest rates incentivize capital to move into gold.  

 

It is difficult to imagine a world of positive real interest rates, absent a significant shift in monetary and fiscal policy in the Western democracies.  Gold and gold shares historically have been positively correlated.  

 

However, during the past few years, gold mining stocks have underperformed the metal due a host of issues that we have discussed at length, including in our article A Golden Mulligan.  Although the article was published a few years ago, the issues afflicting gold mining stocks mentioned then still hold true. 

 

Gold mining stock valuations are at the low end of the historical range since the introduction of the gold ETF (GLD) in 2004, or roughly 10% (basis XAU/spot bullion.)  Significant rallies in gold mining shares have occurred in the past few years from this compressed valuation base. 

 

We see evidence of fundamental change within the gold mining industry, which ...

Hal's insight:

click over for the full piece and the charts.

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Jim Rickards - Who Will Bail Out the Fed & How High for Gold?

Jim Rickards - Who Will Bail Out the Fed & How High for Gold? | Gold and What Moves it. | Scoop.it

"The United States now has a system in which the Treasury runs huge deficits and sells bonds to keep from going broke. The Fed prints money to buy those bonds and loses money owning them. Then the Treasury takes IOUs back from the Fed to keep the Fed from going broke. This arrangement resembles two drunks leaning on each other so neither one falls down. Today, with its 50-to-1 leverage and investment in volatile securities, the Fed looks more like a poorly run hedge fund than a central bank." - James G. Rickards on King World News.

 

Please go read the full post. It's information you need to make decisions in this economy.

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Lear Capital: The Leaky Life Jacket or Gold? | Lear Capital Blog

Lear Capital: The Leaky Life Jacket or Gold? | Lear Capital Blog | Gold and What Moves it. | Scoop.it

David Engstrom writes:

 

The unpredictable, unthinkable but undeniable, has come to pass.  After $6 trillion of additional national debt and trillions more in Fed stimulus, the economy shrunk for the first time in 3 years.  So, has money printing worked or not?  The money printers will answer with a resounding, “Yes!”  Had it not been for the trillions of dollars created out of thin air and injected into every arm of the economy, the economy would have disintegrated long ago.  It was the money printing that saved us from losing all of our wealth.

 

Yup!  That was a close one!  How close?  By some accounts, we were just minutes away from economic Armageddon.  For most, that’s a difficult concept to grasp.  It’s easy to understand how highly leveraged investors, did lose or could have lost everything.  But what about the average person who owns some life insurance,  keeps money in a money market, has a few CDs, some savings an annuity and a pension.  What about that person?  It seems the only risk there, is varying rates of return.

 

But think about it.  Every cent of your paper wealth is invested somewhere by someone in some thing. Go ahead.  Go down the list.  Do you think the financial institution you gave your money to can provide you a rate of return without putting your money at risk?  Even the balance in your checking account is at risk.  If you think a bank, any bank, could cash everyone out of their savings and checking, on demand, you are ill-informed.  The only way your cash is safe in a bank is if it is in a safety deposit box.  Even then, cash rots, as inflation gradually eats away its value.

 

Put in that perspective, maybe the money printers are right – money printing saved us.  God help us if that’s true.  If we were really that close to economic Armageddon, guess what?  We’re ...

Hal's insight:

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January Jobs Data Will Disappoint; Fed to Keep Monetizing Debt | Michael Pento | Safehaven.com

January Jobs Data Will Disappoint; Fed to Keep Monetizing Debt | Michael Pento | Safehaven.com | Gold and What Moves it. | Scoop.it

by Michael Pento:

 

The recent spate of better data on initial jobless claims has caused bond yields to rise, stock prices to rally and gold shares to tumble in the last few days. For the 6th time since 2010, an oasis of improving economic data (that has proven to be ephemeral each time in the past) is once again giving investors the false signal of a robust and sustainable recovery. This has in turn caused investors to once again wonder when the Fed would finally stop buying assets from banks and raise interest rates, which have been at zero percent for over four years.

 

But the data on initial claims has been distorted by seasonal adjustments at the Labor Department. On an adjusted basis, initial jobless claims for the week ending January 19th dropped to 335k, which was the lowest level since January 2008. However, the raw data offers a different take on the labor condition. The unadjusted claims totaled 436,766 in the week ending January 19. That was 20k HIGHER than the 416k claims reported in the comparable week of 2012. The question is, how can initial claims be higher this year than the same week as last year; yet at the same time register the lowest level in 5 years?

 

Other data on the jobs front confirms the view that the labor market is not improving substantially whatsoever. From the January Empire State Manufacturing Report released last week: "Labor market conditions remained weak, with the indexes for both the number of employees and the average workweek remaining below zero for a fourth month in a row."

 

And then there is this from the Philly Fed's Manufacturing Survey: "Labor market conditions at reporting firms deteriorated this month. The employment index, at -5.2, fell from -0.2 in December. The percentage of firms reporting decreases in employment (16 percent) exceeded the percentage reporting increases (11 percent). Firms also indicated a decrease in the average workweek compared with last month."

 

Don't expect a NFP number that is much better than the 150k anticipated by the market. In fact, the odds are better for a significant miss to the downside. ...

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Jon Smith's curator insight, March 23, 2013 9:45 AM

There has been better data on initial jobless claims lately. This is not however neccesarily a good thing. The reason is that investors get the false sign from this that the economy is booming. Information has been distorted by the Labor Department. Things are not significantly improving as other data has shown. My opinion is that graphs, data and statistics can be extremely beneficial but should always be looked at with caution. Raw data does not show reasons why and is not a full representation of conditions. I would suggest things such as interviewing random people in the community and ask them how the jobless rate is based on the people they know and its effects on them.

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Fed Balance Sheet Crosses $3 Trillion for First Time in History

Fed Balance Sheet Crosses $3 Trillion for First Time in History | Gold and What Moves it. | Scoop.it

BY Matthew Kanterman | January 25 2013 9:08 AM

 

January 23 marked a historic event for the Federal Reserve, the monetary institution which has seen its share of historic events since the onset of the financial crisis in 2007.

 

However, as of the week ended January 23, the Fed's balance sheet grew to $3 trillion for the first time ever, the largest in the Fed's nearly 100 year history.

 

The Fed began purchasing $85 billion per month earlier in January as part of its expanded third round of quantitative easing. Initially, the Fed had planned to purchase $45 billion per month in mortgage backed securities. ...

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oftwominds-Charles Hugh Smith: Misunderstanding Austerity, Stimulus and Demand

oftwominds-Charles Hugh Smith: Misunderstanding Austerity, Stimulus and Demand | Gold and What Moves it. | Scoop.it

Keynesian policy requires an expansionist Central State and Bank bent on imposing central planning on every level of the economy. Keynesians are natural partners with the neofeudal financial Aristocracy which benefits so enormously from Keynesian print-borrow-blow policies.


Here is the standard Keynesian cargo-cult analysis of our economic woes:
1. The problem is a lack of aggregate demand, i.e. people buying stuff and services.2. As a result, the economy is running below capacity, i.e. economic output is below potential.3. The solution is fiscal and monetary stimulus, i.e. the Central State borrowing and spending trillions on politically directed programs and the Federal Reserve printing and injecting trillions of "free money" dollars into the financial sector to boost borrowing and lending. The cargo-cult program has failed for a number of fundamental reasons. Let's illuminate these reasons with a few thought experiments. 1. If we borrow or print $1 trillion and bury it in the ground, how much demand does it create? Answer: none, of course; it just sits there, utterly inactive. The Fed has printed around $2 trillion and made huge sums available to the financial sector at 0% interest. Most of the funds are sitting in the Fed as reserves, doing nothing except earning interest for the banks who borrowed it at 0%. ...
Hal's insight:

You should click over for the rest and the charts.

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Economics Professor Laurence Kotlikoff - Bernanke Playing With Fire

http://usawatchdog.com/bernanke-playing-with-fire-laurence-kotlikoff/ - Economist Laurence Kotlikoff says, "We are actually in worse shape than any developed country. . . We are using accounting that would make Bernie Madoff blush." Kotlikoff thinks the Federal Reserve could easily lose complete control of inflation and warns, "Ben Bernanke is playing with fire here because we could have a tripling of the price level." Join Greg Hunter as he goes One-on-One with Boston University Economics Professor Laurence Kotlikoff.

Hal's insight:

Good Interview. Hat tip to www.jsmineset.com 

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Charles Hugh Smith: Martian Central Bank Interested in Buying 100 $1 Trillion Coins

Charles Hugh Smith: Martian Central Bank Interested in Buying 100 $1 Trillion Coins | Gold and What Moves it. | Scoop.it

The $1 trillion coin saga takes an unexpected twist....


The $1 trillion platinum coin saga took a surprising turn as the Central Bank of Mars has expressed interest in buying 100 of the proposed coins. Interpreters are puzzling over the meaning and subtexts of the Martian communique; since Martian is described as an often-ambiguous combination of Fortran and Hungarian, this is no easy task. Opinion on the Martian offer is divided. Some suspect the Martian Central Bank intends to buy the $100 trillion in platinum coins with electronically created quatloos, i.e. worthless currency. These observers believe the Martians intend to claim the $100 trillion in platinum coins constitutes a claim on the entire U.S.A., the purchase of which would effectively give the Martian Central Bank a massive beachhead on Earth. ...
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This is beautiful. LOL! Click over for the full piece.

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According To The Bretton Woods Calculation, Gold Is Worth $20,000 Per Ounce

According To The Bretton Woods Calculation, Gold Is Worth $20,000 Per Ounce | Gold and What Moves it. | Scoop.it
Aka the shadow gold price.

 

The global monetary system rests on a fragile foundation of trust. Thanks to the actions of central banks, pressure on the system will keep growing.

 

Paper U.S. dollars sit at the heart of the global monetary system. Dollars are liabilities of the Federal Reserve. Just as houses are collateral for mortgages, Treasuries and mortgage bonds are collateral for U.S. dollars.

 

A central bank’s balance sheet is essentially a self-reinforcing feedback loop: Government bonds are the collateral for dollar liabilities, and bonds are streams of future dollar payments. So the dollar is backed by the promise of more dollars…



Read more: http://feedproxy.google.com/~r/dailyreckoning/~3/fW19Pvbxkw4/#ixzz2HVJz2s00

Hal's insight:

Hat tip to www.jsmineset.com

 

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