Perceptions of FLOWS have now taken control of the global financial market. Investors must carefully consider where the Risks are looming and rapidly growing. In the new world dominated by Fiat Currencies and Debt ...
The ratio of potential claims to deliverable gold remains at an extreme of 57 to 1, despite the pricing antics designed to shake off the standing longs, and to scrape out physical supply from wherever it can be had.
But the leverage remains quite high in what is normally a big delivery month of December. That so few longs have yet to be filled with physical bullion is interesting.
January is a non-active month.
So we will probably see continued volatility ...
Click through for the rest of the post and the full size chart.
The absurd “War on Gold” that India has launched this year has been covered many times on this site. From the moment I read about it, it was obvious that if Indians want their gold, the Indians will have their gold. You can’t break thousands of years of tradition and culture because of the ignorant whims of a few bureaucrats.
Earlier today, Reuters published an article detailing the extent to which Indian smugglers will go in order to bring the money of kings into the country. This includes hiding it in underwear, swallowing it whole and even painting gold staples gray. What is most disturbing is the lengths authorities ...
This whole India dynamic continues to amaze me. one wonders how long the government can keep up their war against the people's desire for the metal.
In what is probably the most unusual new home sales report I've ever seen released by the government's Census Bureau, new home sales for both September and October were released today. Although the media headlines are reporting a massive gain in new home sales for October, a careful analysis of today's report reveals serious weakness in new homes sales, beginning in July, and it shows fundamental problems with how the Census Bureau (CB) estimates monthly new home sales. Based on my careful review of the numbers, my thesis that the housing market is heading off of a cliff continues to be reinforced.
Because of the Government shutdown, the CB released new home sales for both September and October. For starters, the number published for August - originally said to be 421k and a 14.1% sequential increase over July - was revised down massively to 379k. With this revision, the original report that showed an increase from July to August has now become a 2.9% decline from the original July revision. ...
Click through for the rest. Dave does a good job of tracking this stuff and lays out how the numbers are heavily massaged.
After Peter Schift, The Economist, Forbes and even Mr Bubble himself - Mr Greenspan - have called Bitcoin The Bubble it took the announcement from China to Crash it down from Double Top and parity level with Gold. It is important to note thatChina has been buying the record amount of Gold this year and has encouraged its citizens to accumulate it. Now China is explicitly warning its people about the dangers of Bitcoin speculative Bubble and effectively taking its out of official monetary system. Now position of FED and Congress on Bitcoin is getting more interesting: do we have the Mexican standoff between Gold backed China, FED backed US Dollar and ... NSA, sorry Satoshi Nakamoto backed Bitcoin? Gold should be waking up to the Bitcoin action after this Chinese move and its timing is very important as well: Gold is very close to retest this year low. ...
This to me is fascinating and something to think about in terms of China's latest moves in the currency trades. Not only that but also the fact that they are piliing big into gold and precious metals mining. No virtual fiat for them. They want the real deal.
1. The Bank of England will announce its rate decision at 6 a.m. CDT and look for the status quo. Governor Carney has been pleased that the U.K. economy is gaining traction and the Brits’ QEprogram has been tapered for a quite awhile, meaning that theBOE‘s balance sheet has remained at 375 BILLION POUNDS in asset purchases. Inflation has been lowered while growth has increased. The rise in housing prices will be a concern but Carney seems to be comfortable decreasing the lending program to private borrowers while continuing to keep loans flowing to small and medium businesses. The BOE will keep rates at 0.5% and probably use a cautious outlook in reference to Europe so as not to exciteSTERLING BULLS.
2. The European Central Bank (ECB) will announce the results of its meeting at 6:45 CDT and I expect no change in rates or a change in official ECB policy. The last meeting saw the ECB cut rates by 25 basis points but the vote to cut rates was contentious ...
By standards of previous generations, the middle class has been stripmined of income, assets and purchasing power.
What does it take to be middle class nowadays? A recent paper, The Distribution of Household Income and the Middle Class, used Census data to discuss what sort of income it takes to qualify as middle class, but reached no firm conclusion: people tend to self-report that they belong to the middle class based on income, but income is not the only the metric--indeed, it can be argued that 12 other factors are more telling measures of middle class membership than income.
In Why the Middle Class Is Doomed (April 17, 2012) I listed five "threshold" characteristics of membership in the middle class:
1. Meaningful healthcare insurance 2. Significant equity (25%-50%) in a home or other real estate 3. Income/expenses that enable the household to save at least 6% of its income 4. Significant retirement funds: 401Ks, IRAs, etc. 5. The ability to service all debt and expenses over the medium-term if one of the primary household wage-earners lose their job
Having replaced savings with debt on both the national and individual levels, I think it's well past time for Westerners to take a few lessons from our creditors in the East. Many Americans consider gold a "barbarous relic," but in Asia, the yellow metal remains the bedrock of individual savings plans. This means that either greater than half of the world's population are barbarians, or they've held onto an important tradition that our culture has forgotten.
A Culture of Gold
One of the most important elements of Eastern gold demand is that it is not limited to educated investors or the higher classes, as often seems to be the case in the West. Throughout Asia, no matter one's social status, precious metals are the first assets people choose to protect their wealth. There is not even a glimmer of doubt about the enduring value of hard money.
A recent Bloomberg article quotes a Chinese woman, "I don't know anything about the stock market and I don't have enough money to buy property, so I figured gold is the safest choice."
Some might write off this philosophy as naïve, but her logic is founded in centuries of tradition, borne of hard-won experience. The same goes in India and across South Asia, where gold is an essential part of local religious customs. From wedding dowries to temple offerings, gold carries a cache in Asia that most Westerners can't fathom. ...
Americans may have to start paying to keep money in the bank. Retail banks have warned they might need to start charging customers and companies for deposits if the US Federal Reserve cuts interest it pays on bank reserves.
The message from the US banks comes as fears grow the Fed could start tapering its $85 billion monthly bond purchases, the Financial Times reports. Less money injected could mean the US authorities will start using alternative tools to boost the economy, like cutting interest rates.
The US Fed took the drastic decision to cut interest rates to near-zero to help stabilize the economy after the 2008 financial collapse and the following recession. This allowed banks to pay less for the money they borrow. ...
Almost a quarter of Greece’s 11 million people are at risk of poverty, the highest such percentage among European Union countries, according to recent statistics from the Hellenic Statistical Authority (HSA).
The HSA said 23.1 percent of Greeks were at risk of falling into poverty in 2012, up from 19.7 percent in 2009. That’s equivalent to more than 900,000 households, which could soon earn less than about 11,900 euros ($16,000) for a household with two adults and two children under 14 years.
Those hardest hit include single parents with children and unemployed men. Over 50 percent of men without jobs risk poverty. Single mother households and homes with seniors are also vulnerable. ...
had the chance recently to reconnect with John Rubino, CFA Institute contributor, blog publisher, and author of a number of financial books.
It was a particularly interesting conversation, as John has written a number of prophetic books warning of growing asset bubbles, and currently produces editorial research for CFA designated fund managers worldwide. As the subject of discussion, was a recent piece published by John, entitled,“Inflation is Raging – If You Know Where to Look“.
In discussing his research on global markets, John notes that frightening asset bubbles are developing all over the world, and as a case in point, “Bitcoin…was about a dollar per Bitcoin a couple of years ago. Now it’s $1000…A painting by Francis Bacon called ‘Three Studies of Lucian Freud’ [just] sold for $142 million, which was the highest price ever paid for a painting at an auction….[A] diamond [just] sold for $83 million which is the highest price ever paid at auction for a diamond, and trophy real estate in Manhattan, London, Singapore and Hong Kong have all blown through previous records…So there are asset bubbles [occurring] all over the world.” ..,
... it is a doctor's duty to do what's best for his or her patient, no matter what. Thisone-page oath has guided Western doctors for over two millennia.
Obamacare, clocking it at 2,700 pages (plus 20,000 pages of regulations, which they're not done writing yet) is based on the exact opposite idea: that a physician should serve the collective, or greater societal good, even at the expense of an individual patient.
I've written before about how Obamacare is based on "The Complete Lives System" by Ezekiel Emanuel, Rahm Emanuel's brother, and an early senior White House health policy adviser to Obama. Most Americans have never read these articles, because they were published mainly in British medical journals. You can read one for yourself here.
"The Complete Lives System" makes crystal clear that physicians must not focus on the individual patient.Instead, medical care should be allocated based on the patient's usefulness to the "collective good." If you're too old, or too young, or your ailment is too complicated, society is better off letting you die, rather than paying a doctor to heal you.
One tenet of the Complete Lives system is that medical care for people under age 15 and over age 45 should be attenuated. "Attenuate" means to ration. Emanuel believes that the very young and the elderly are less valuable to society than those in the middle of the age curve. He published this chart called the "reaper curve," which illustrates which age groups he believes should receive the most and best medical care. ....
This is a must read. Click through for the whole piece.
By California Lawyer | Thursday, December 5, 2013 at 1:07 amYes indeed. The development of crypto currencies, such as bitcoin, or perhaps others to come soon, IS the black swan. Prepare accordingly. There are compelling reasons for this conclusion. Why? (1) Use of crypto currencies, such as bitcoin, cannot be stopped by centralized authority absent total shutdown of the internet. Bitcoin is peer to peer, meaning that if part of the network is destroyed, or shut down, then the bitcoin network will still function, just as the internet designers contemplated when they designed it to withstand nuclear war. ...
Click through for the full post. It's a very interesting thesis.
On the heels of some wild trading in the gold and silver markets, today legendary Pierre Lassonde warned King World News about a “seminal event” that can radically change the gold price “overnight.” Lassonde also told KWN what to expect in the gold market going forward, as well as the mining shares. Lassonde is arguably the greatest company builder in the history of the mining sector. He is past President of Newmont Mining, past Chairman of the World Gold Council and current Chairman of Franco Nevada.
Lassonde is one of the wealthiest, most respected individuals in the gold world, and as always King World News would like to thank him for sharing his wisdom with our global readers during this critical period in these markets.
Lassonde: “What could precipitate a major sentiment change in the gold market and a significant revaluation of gold is if we were to see a default in Europe, whether it’s Greece, Spain, or another EU member. I think you will see defaults....
December 5 (King World News) - “History Is About To Repeat & It Will Shock The World”
The 13 year cycle applies to the S & P 500/DJIA and gold. When the S & P 500 tops in the 13th, year gold bottoms in the 13th year. It has been that way since U. S. citizens were granted the right to own gold.
The chart below shows 3 separate 13-year cycles starting in 1973. ...
I asked Nick of Sharelynx if he could wrangle up some comparison charts between the Comex and Shanghai for our inquiring minds.
Interestingly enough, Shanghai dominates in gold delivery, but Comex does reasonably well for silver over the last five years. The new charts are shown below for both metals.
Comex delivered a total of 1,025 tonnes of gold, whereas Shanghai did 8,655. And in the case of Comex much of their delivery had never left the warehouse complex until recently. It went into customer storage and came back on a trade. In Shanghai the gold must leave the warehouse.
In the case of silver, Comex has delivered 15,165 tonnes whereas Shanghai has done only 3,266. But if you look at the Shanghai trend it is obviously growing at an accelerating rate in silver. ....
Click through for the full post and full size chart.
Fed Chair Bernanke vehemently denies Fed “monetizes the debt,” but our research shows the Fed may be increasingly doing so. We explain why and what the implications may be for the dollar, gold and currencies.
What is debt monetization? A central bank is said to monetize a government’s debt if it helps to finance its deficit. The buying of Treasuries by the Federal Reserve is a clear indication that the Fed is doing just that, except that Bernanke argues the motivation behind Treasury purchases is to help the economy, not the government. ...