Today an acclaimed money manager told KWN that Germany has yet again strengthened its alliance with China. Stephen Leeb also said that as the China/German relationship strengthens, Germany’s relationship with the United States is rapidly declining. All of this is good news for Russia, who is more than happy watch this unfold.
Leeb: “I was floored by the comments made on Merkel’s visit to she just concluded to China. The German leader went to China for several days and many trade agreements were signed in what turned out to be an extremely friendly visit. The president of China left Merkel saying he wished Germany luck against Brazil in the World Cup and called Germany an ‘important strategic partner.’....
It's amazing how quickly things are turning against the dollar. Click through for the rest of the interview.
Lear Capital CEO Scott Carter tells TheStreet's Joe Deaux that he expects gold to touch $1,450 an ounce this year, because he says positive headline economic data is overshadowing weaker details in the reports. Carter defends his forecast despite the June jobs report, which showed ...
Two potentially big stories for gold are unfolding right now. In disparate parts of the globe.
First in terms of gold supply. In the world’s fifth-largest bullion producer: Peru.
Reports late last week from the Peruvian government show another notable decline in monthly gold output. With production for May falling 24.6% compared to the year-ago period. Equating to a loss of over 111,000 ounces for the month.
The drop in output continues a trend we saw the previous month. With April production figures down by over 116,000 ounces – or 26% – compared to April 2013. ...
Today an acclaimed money manager told KWN that investors need to prepare themselves because the Chinese are going to push the price of gold, silver, and oil dramatically higher. Stephen Leeb also said the Chinese are going to start loaning money to companies to produce gold and they will demand physical gold as repayment.
Leeb: “Eric, right now the new dynamic is Germany, China, Russia, and India becoming the new economic leaders in the world. There will also be a new economic bloc involving China, Russia, and Germany....
Nope – that’s my answer. It’s my assumption the People’s Bank Of China (PBOC) does not buy any gold through the Shanghai Gold Exchange (SGE), for a number of reasons. In previous posts I’ve speculated about these reasons, here’s a recap; from Koos Jansen (April 15, 2014):
The main objectives for the PBOC to accumulate gold are:
Supporting the renminbi for its internationalization (adding trust and credibility)Owning hard currency as the cornerstone of capitalism.Owning reserves that protect the Chinese economy from external/internal shocks and inflation. ...
Bank Act organizes support for the successful passage of postal banking legislation at the federal level and other public banking legislation at the state and local level. Our vision is for widespread adoption of public banking in the USA and Canada, with post offices providing affordable banking services on Main Street and state and municipal-owned banks providing affordable credit as an essential element of public finance.
Through advocacy, legislative assistance and coordinating among like-minded groups, Bank Act aims to have states and cities start their own public banks to keep tax funds working in the public interest. We aim to have the US Postal Service adopt proposals of its Office of Inspector General to drive out payday lenders, boost local economies, strengthen independent community banking, and financially stabilize the USPS itself — all at no cost to employers or taxpayers — by offering low-cost financial services to low-income workers and families.
You must be joking. Zero Cost to Taxpayers? LOL right. Hey, for Ten Grand I'll sell you an island I have that floats not on water but on air.
They want the USPS to make payday loans and do money cards. That's hilarious.
Greyerz Tells King World News: “I’ve just come back from the United States. What surprised me was how bullish some people are about the U.S. economy and the equity markets. The mainstream media continues to fuel this totally misplaced optimism....
China must have a bigger influence on the global gold market being the top consumer of the precious metal, the head of state-backed Shanghai Gold Exchange (SGE) said, as the country targets establishing its own pricing benchmark. "We should have gold fixing, pricing done in China itself," SGE chairman Xu Luode told an industry conference in Singapore on Wednesday.
"We need to use SGE's international board to implement opening up of the gold market. We need to build China's influence in the global gold market," Xu said. China, along with exchanges in Singapore and Hong Kong, are launching gold contracts this year in a bid to tap a market looking for a viable alternative to the metal's global benchmark that is under regulatory scrutiny. ...
When it comes to investing, a technician I am not. I don’t try to be, I don’t pretend to be, I don’t even wanna be. To me watching technicals is like going to a horse race and watching everything but the horse. It’s just one gambler trying to out-gamble another. And, just when you think you got it figured out, a fresh horse enters the race and the favorite loses. Or… overnight, subprime mortgages wipe out 20 years of savings and send all the technicals into the trash bin.
Ever hear the line, “When the markets go up – you make money! When the markets go down – you make money!” These are words spoken by a true technician. They make you believe if you watch the technicals, it’s impossible to lose. Need I say more?
Then there are the fundamentalists. If I had to be cast in a specific investor light, this is where you would see me. What’s the big picture? What’s the long term prospect for success? How can I position myself to take advantage of rising stocks, rebounding real estate and buy low opportunities. In the long run I think fundamentals win ...
The Fed spends an inordinate amount of time focusing on increasing Lending with the idea that loan growth increases economic activity. Is it possible that it is Interest Income derived from Savings that is more important to economic growth?
Click through for the full article. It's worth a read. I would hazard a guess to say, yes. With the clarification being, only if you don't want to enslave people via debt. But if you are looking to enslave the populous with debt then the FED is doing it right.
Those who own the resources and influence the political control of those resources are the New Nobility in a pernicious Neofeudalism enforced by the very government that claims to serve the debt-serfs and tax donkeys.
Let's tease apart several strands of Neofeudalism, my preferred term (along with Neocolonialism) for the Status Quo.
The E.U., Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012)
It is increasingly clear that a new form of feudalism has subverted democracy, and that the New Feudalism is powered by concentrations of private wealth and centralized state control: what I call the New Nobility ...
Gold is turning into something of a forgotten asset, and that’s fine by me. There will be a time to buy gold again, and when that time comes, there will be very few believers. That’s the way italways is before a major rally.
With most things in life, you see something like a 90/10 or 80/20 rule. As it relates to gold, this means that 5% are in the “gold bug” crowd, 5% is in the “gold is a barbaric relic” crowd, and 90% in the “I don’t have a strong opinion about gold” crowd. This helps explain rallies; remember, there is tremendous latent energy in gold, and it comes from the majority that isn’t thinking about gold–yet.
Now this is really the case with any asset, such as stocks. I am telling you, more people will be stampeding to buy the Dow at 30,000 than at 10,000. And I’m not only talking about the mythical and much-derided “herd” that always buys too late. I’m talking about institutional money. It’s not, “let me think in terms of probabilities and expected value and ease into stocks.” Nope. It’s skepticism, disbelief, and absolute religious-like refusal to buy stocks. Then finally capitulation and panic buying. ...
Can the prophet ever be honored at home? Part of the challenge of converting friends & family to precious metal ownership is just that—it requires a conversion. But it is different than a conversion, lets say, from being a Catholic to being a Baptist, or from apostasy to any religion. Within the bounds of western societies, these are perfectly normal and expected conversions. A guy gets married and starts going to church with his more religious wife. A teenager finds Jesus and attends the youth group at the local church. Today, these are common and acceptable conversions and indeed my own parents breathed a sigh of relief when I started going to church instead of hanging out with my troublemaker friends.
No, converting to precious metals is more like converting from Islam to Christianity, or vice versa. It has to be complete and it could cost you much. Those who talk too much about their conversion to family & friends are often alienated. But, you are literally saving your soul from the hell of poverty and destitution…that is if you believe in societal collapse, or even economic impoverishment as a nation. With conversion to precious metals, you cross a line. You are putting your labor-wages into true money that will survive whatever hell may be approaching us. ...
Institutionalizing the speculative excesses that inflated the previous housing bubble has fed magical thinking and fostered illusions of phantom wealth and security.
The global housing market has been dominated by magical thinking for the past 15 years. The magical thinking can be boiled down to this:
A person who buys a house for $50,000 will be able to sell the same house for $150,000 a few years later without adding any real-world value. The buyer will be able to sell the house for $300,000 a few years later without adding any real-world value. The buyer will be able to sell the house for $600,000 a few years later without adding any real-world value.
And so on, decade after decade and generation after generation: a house should magically accumulate enormous capital (home equity) without the owner having to do anything but pay the mortgage for a few years.
The capital isn't created by magic, of course: it's created by a greater fool paying a fortune for the house on the ...
There are several aspects about working in today’s financial industry that are less than perfect, although gaining an insight into how many on Wall Street think and why they make the decisions that they do is certainly one of the positives. In fact what many on the outside often have a hard time understanding is that most on Wall Street are in reality somewhat oblivious to massive bubbles that the Federal Reserve has inflated, and that can make things confusing when you don’t factor it in properly. However whether they should understand what’s going on or not, once you can understand the mindset from which the average Wall Streeter is coming from, it can give you an incredible trading advantage that’s almost the equivalent of spotting your opponent’s “tell” at the poker table. ...
The proximate trigger of instability is less important than we think.
It's tempting to think that the resolution of various geopolitical crises would restore global stability: tempting, but wrong. Global turmoil may appear to have specific causes--Ukraine, Iraq, Syria,etc.--but the deeper reality is the instability is systemic.
The proximate trigger of instability is less important than we think. The often-cited analogy is a sand pile formed by a steady trickle of sand from a storage bin. The sand slowly accumulates into a seemingly stable pile. But the structure of the pile becomes increasingly unstable as the sides steepen and the height grows, and at some unpredictable point the pile suddenly collapses in cascades of sand. ...
June 29 (King World News) - Chinese Debt Soars 25-Fold, Danger In Japan & Surging Gold
More than 20 years after its infamous real estate and equity bubble burst, Japan has been plagued by economic malaise, an ailment most mainstream economists have attributed to something they call a deflationary death spiral. As one lost decade turned into two, and now well into a third, Japan’s Prime Minister Shinzo Abe has vowed to remedy this deflationary flu with an enormous dose of inflation.
In Japan they affectionately refer to this elixir as Abenomics. In English, this remedy roughly translates to an enormous injection of public spending, more than a spoonful of currency destruction, chased down with a large dose of a consumption tax. And if deflation had actually been what had ailed the Japanese economy, it would appear that after more than two decades, they finally found their cure. The price of food is soaring at the fastest pace in 23 years and core consumer prices jumped 3.2 percent year over year in April.
Unfortunately, those Japanese who were only sick of the stagnant economy are starting to wonder ...
Click through for the rest. If you've followed me for a while you know that I view debt as one of the primary drivers of gold's price. For one, debt is now a currency of sorts and two, once it is no longer sustainable that debt will be fuel to gold.
On the heels of the news out of China that some shadow bank loans are backed by non-existent gold, today King World News spoke to the man who has been focused on uncovering sensitive government and market information for over 15 years. What he had to say will surprise KWN readers around the world. Powell discussed Eric Sprott’s warning and stated that we will eventually see the paper gold Ponzi scheme lead to “bullion bank catastrophes” that will create a short squeeze unlike anything the world has ever seen. Below is what Chris Powell had to say in this remarkable and timely interview.
Eric King: “We now have news out of China that some of the shadow banking system loans were backed by non-existent gold. Over here, Eric Sprott has warned that the West cannot continue to hemorrhage gold out of its vaults indefinitely -- that the West will simply run out of gold.”
Powell: “That’s been the lesson of history. That’s what happened in the West in 1968 when the London Gold Pool collapsed in 1968, precisely because the gold available to the pool ran out. The United States, the Bank of England and the six or seven Western European countries that were part of the London Gold Pool were simply overrun....