Today KWN is featuring an interview with multi-billionaire Hugo Salinas Price where he told King World News in stunning detail what he believes to be the frightening plan to “control the world” going forward. He described this as a “very disturbing fact that is facing humanity.” Here is how he detailed the horrifying situation in May of 2012: “Eric, the problems we are seeing in the West are not going to be resolved in any positive way. What we have had in the West, in recent decades, has been the welfare state. The welfare state is, in my view, what I would call, ‘socialism light.’ We’ve had ‘socialism light’ and now we’re going to transition to full-blown socialism.”
“This could not be paid for out of taxes -- it had to be financed. This is what has caused the explosion of debt in the West. The people who are in power, the elite, do not want to relinquish their power. They plan to retain it under full-blown socialism for the populations of the West....
What's the difference between the U.S. Congress and corrupt petty officials taking bribes at a Third-World border crossing? Only one of scale.
Corruption ceases to be corruption when it becomes the Status Quo; what was once recognized as corruption is seen as just another cost of doing business. Our political order is structurally corrupt: the key dynamic in every level of governance is favoritism and extortion.
Favors must be bought: those foolish enough not to spend freely on lobbyists and campaign contributions find their competitors have gained the upper hand by buying favors such as tax breaks, federal subsidies, no-bid contracts, cost-plus contracts, backroom deals, regulations that exclude competition and so on.
Politicos must extort campaign contributions from the maximum number of supplicants seeking favors to maintain their perquisites and power.
Pento: “Inflation is a persistent and pervasive fall in the purchasing power of paper money. It is not too many people working and producing or being productive. That is why I believe the Fed is going to be behind the inflation curve for years to come....
Today KWN is putting out a special piece which features three charts showing the roadmap to a historic move in gold, silver, and the shares. These are the types of charts that the big banks follow closely, as well as big money and savvy professionals. David P. out of Europe sent us the remarkable charts that all KWN readers need to see. There is also a bonus piece included from legendary Art Cashin ...
Click through for the charts and Art Cashin's thoughts.
The reason that there is a 'currency war' underway globally, and why there is increasing civil and political tension domestically, is not because of an envy for the Anglo-American one percent's way of life. The reason is that the monetary system and the Western economies have gone off the rails with financialization and speculation, and there is a commensurate revulsion from it from those who are in a position to seek alternatives wherever they may. Those who cannot will be victims. This system is fragile, and will not cohere. ...
Casey Senior Precious Metals Analyst Jeff Clark debunks common misconceptions about Chinese demand for gold today.
Jeff Clark, Senior Precious Metals Analyst
I don’t want to say that mainstream analysts are stupid when it comes to China’s gold habits, but I did look up how to say that word in Chinese…
One report claims, for example, that gold demand in China is down because the yuan has fallen and made the metal more expensive in the country. Sounds reasonable, and it has a grain of truth to it. But as you’ll see below, it completely misses the bigger picture, because it overlooks a major development with how the country now imports precious metals.
I’ve seen so many misleading headlines over the last couple months that I thought it time to correct some of the misconceptions. I’ll let you decide if mainstream North American analysts are stupid or not.
The basis for the misunderstanding starts with the fact that the Chinese think differently about gold. They view gold in the context of its role throughout history and dismiss the Western economist who arrogantly declares it an outdated relic. They buy in preparation for a new monetary order—not as a trade they hope earns them a profit.
Combine gold’s historical role with current events, and we would all do well to view our holdings in a slightly more “Chinese” light, one that will give us a more accurate indication of whether we have enough, of what purpose it will actually serve in our portfolio, and maybe even when we should sell (or not). ...
9 minutes before CPI data hit, gold futures were slammed lower on notable volume ($390 million). Then as CPI hit and "noise" was evidently not going away, gold prices surged over $12 to $1316 obn very heavy volume... Gold is moving inversely with the USD (which is flying around) as stock rally (?) and longer-term bonds rally/flatten.
Looking at the gold price these days, it's sure hard to believe that there is so much economic and monetary strife going on out there---and the geopolitical icing on the cake is the Ukraine/Russia situation---along with the Israel/Palestine military action currently underway. And I believe it was just last week the China told the U.S. to keep its nose out the South China Sea as well.
I suspect that commodity prices in general, along with the four precious metals in particular, have become crucial elements in the Pentagon's "Full Spectrum Dominance" doctrine that F. William Engdahl wrote about back in October of 2009---and if you haven't read the book, you should! JPMorgan et al. are just doing the dirty work in the Comex futures market on their behalf---and it's not just American bullion banks, either. ...
Part I explained how and why the dollar is such an important reserve and trade currency, and how the USA relies on this privileged position to remain solvent. But momentum is building to challenge the dollar’s dominance in global trade and investment flows. Is this something that should worry us, and what can we do about it?
Over the past 24 years, mining companies discovered 1.66 billion ounces of gold in 217 major gold discoveries, SNL Metals & Mining's 2014 edition of Strategies for Gold Reserves Replacement shows.
While that sounds like a significant amount of gold, it falls short of the 1.84 billion ounces produced over the same period. In addition, the amount of gold discovered and the number of major discoveries (defined as any deposit with a minimum of 2 million ounces of contained gold) have been trending downward over time, from 1.1 billion ounces in 124 deposits discovered during the 1990s to only 605 million ounces in 93 deposits discovered since 2000.
The amount of potential production from these major discoveries is particularly concerning when looking at the discoveries made in the past 15 years. Assuming a 75% rate for converting resources to economic reserves and a 90% recovery rate during ore processing, the 674 million ounces of gold discovered since 1999 could eventually replace just 50% of the gold produced during the same period.
Like all addicts, Central Planners are confident they can manage the monkey on their back. But this is a self-serving illusion.
Addiction is many things, but beneath its complexities it is a self-destructive expression of the desire to avoid or suppress pain. The pain might be physical or the stuff of the mind, memories or inner demons or tortured misgivings about one's choices, soul and life.
Though the self-destructive aspects of the addiction are painfully visible to observers, to the addict they represent a solution: perhaps not the ideal one or even a good one, but a solution nonetheless.
Fear plays a big part in many addictions--fear of life without the addictive salve. The ...
Click through for the rest of the article. And grab Mr. Smith's RSS feed. Always a worthy read.
With the war in the gold and silver markets heating up, today gold analyst Frank K. out of the Netherlands sent King World News two shocking charts which reveal the massive flow of gold from West to East. The charts show gold is literally hemorrhaging from Western central bank vaults to Eastern vaults, where it will never return.
Here is what Frank K. had to say along with his 2 key charts: According to the latest figures by the Swiss Customs Administration, the country has exported a total of more than 600 tons of gold to Asia in the first half of this year....
With less than 6 months to go until the end of the year, with various gold ETFs suddenly seeing the biggest buying in years, and with gold continuing to outperform most asset classes YTD, what is Goldman to do? Why follow the trend of course, and just like David Kostin had no choice but to boost his S&P 500 price target using the idiotic Fed model as a basis, so earlier today Goldman just upgraded its gold price target from $1,066 to $1,200. Probably this means that after accumulating it for the first half of the year, Goldman is finally preparing to sell the precious metal. Not so fast: because while Goldman did just raised its price target, it continues to have a Conviction Sell rating on Gold, which is its second most hated commodity after iron ore. Go figure.
Nanomotors are an amazing feat of engineering: tiny gold rods less than a micrometer long, powered by ultrasonic waves to spin at crazy-fast speeds. How fast? Scientists just figured out a way to measure, and it's astonishing: 150,000 RPM, ten times faster than the fastest race car engine.
Just as the Federal Reserve cannot directly force you to stick the needle of monetary heroin (debt) into your arm, it also can't force employers to pay employees more.
The official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for "growth," i.e. economic expansion. The unstated reason for this official support of inflation is that it's easier for borrowers to service their debts as their income inflates.
To take an extreme example: let's say a homeowner has a mortgage of $100,000, an annual wage of $40,000 and annual mortgage payments of $10,000. At 100% annual inflation in both prices and wages, the home mortgage remains fixed at $100,000, the payment remains fixed at $10,000 but his earnings double to $80,000.
Where the mortgage payment initially took 25% of his earnings, now it ...
(Reuters) – China signed a bilateral currency swap agreement worth 150 billion yuan ($24.17 billion) with the Swiss central bank, which can invest up to 15 billion yuan in China’s bond market.
The three-year swap, signed on Monday, will "provide liquidity support for bilateral economic and trade exchanges and help maintain financial stability," the People’s Bank of China (PBOC) said in a statement on its website, www.pbc.gov.cn.
The swap deal will provide liquidity support for development of the offshore yuan market in Switzerland and will be extended if needed, the PBOC said. ...
The days of swallowing medicine and hoping it does the job are numbered. In future, precious metals will deliver drugs to a specifically targeted type of cell or part of the body. At least, that’s according to scientists from the Massachusetts Institute of Technology and EPFL, who have discovered that gold nanoparticles are able to penetrate cell membranes, meaning they ...
Depending on blowing the next bubble to temporarily prop up the economy is the height of foolhardy shortsightedness.
All the conventional policy fixes proposed by Demopublican politicos, technocrats and the vast army of academic/think-tank apparatchiks are the equivalent of slapping a coat of paint on a fragile facade riddled with dryrot. All these fake-fixes share a few key characteristics:
1. They focus on effects and symptoms rather than address the underlying causes, i.e. the dryrot at the heart of our government, society and economy.
2. They maintain and protect the Status Quo Powers That Be--no vested interests, protected fiefdoms or Financial Elites ever lose power as a result of these policy tweaks. ...
After last Monday’s “takedown” on the Crimex (Comex) opening, the numerous gold bears (and the financial journalists who “love” to cover their “dislike” for the “relic”), were out on Tuesday rehashing for the umpteen time why gold is going under $1,000. I believe “panning” gold now joins “death and taxes” as sure things Gold and silver have worked off their oversold position and while some more back and filling wouldn’t hurt, I believe the surprises shall be mostly to the upside for the balance of 2014. ...
July 19 (King World News) - This Collapse Will Be Infinitely Worse Than The 2008 Crisis
According to Pimco’s new Chief Economist, Paul McCulley, the Fed’s war against inflation has been won! But, before we get out our party hats and plan the tickertape parade, we have to ask ourselves – for the past 27 years have we really been at war with inflation? Yes, during the late 1970’s and early 80’s a different Paul (Paul Volcker, Chairman of the Federal Reserve) waged a real battle against inflation....
Eric King: “Nigel, what about the reemergence of the banking crisis?”
Farage: “Well, everybody has been terribly complacent about this. The general view has been that the banking problem is out of the way, the eurozone debt crisis is finished, the existential crisis is over, and it’s all going to be fine. But we saw some really quite bad shudders down in Portugal last week. There were (also) some very serious concerns about one or two of the Austrian banks.
And what no one has noticed is (what’s happening in) these Mediterranean countries. We’ve seen the bailouts of course. We’ve seen the Greeks bailed out more than once. We’ve seen the Cypriots bailed out, Portugal, Spain. All of this stuff has been going on and (yet) we’ve been told the problems are over. And the reality is the banks are in as big a mess as they ever were. Actually, the national debt ratios of these countries that have been bailed out over the last couple of years has slowly but surely been increasing in every single (member) state. So we’ve seen a sudden sort of realization that this problem hasn’t gone away.” ...
Click through for the full interview and for his thoughts on gold.