Gold and What Moves it.
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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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Michael Pento - The World Is Now Headed Into A Depression

Michael Pento - The World Is Now Headed Into A Depression | Gold and What Moves it. | Scoop.it

Today one of the top economists in the world told King World News that despite bounces, stocks will continue to crater and he has positioned his clients short for a collapse in global markets.  Michael Pento, founder of Pento Portfolio Strategies, also warned that central planners now have the world headed into a depression. 


Pento:  “It looks like the central bankers around the world have, after years of saying they were going to keep interest rates low and they weren’t going to allow markets to work, decided to change their minds.


And I’ve seen a watershed moment for Mr. Bernanke....


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Time For A Break

Time For A Break | Gold and What Moves it. | Scoop.it

You know how they say that dogs can sense an impending earthquake? Don't you kind of feel that way these days? I know I do.

 

First, it seems that everything is down. Stocks. Bonds. Commodities. Every currency. If there's a market for it, it's being sold. The only thing that is consistently rising this past week is The Pig. And once those dollars are bought, where are they going? Apparently nowhere. Very strange. Almost ominous.

 

Then you've got very knowledgeable folks like Bill Holter at MilesFranklin blaring the alarm with columns like this: http://blog.milesfranklin.com/the-great-unwind-has-finally-arrived and this: http://blog.milesfranklin.com/the-button-has-been-pushed-ready-or-not

 

We've got Santa, who is clearly very, very nervous. He's practically begging you to meet him somewhere for a discussion: 

http://www.jsmineset.com/2013/06/24/chicago-vancouver-and-scottsdale-qa-session-tickets-still-available/ And he keeps posting messages urging you to Get Out of The System (GOTS) as quickly as possible. Just yesterday, he linked two articles which you really do need to take some time to consider:

 

http://www.leap2020.eu/GEAB-N-76-is-available-Alert-for-the-second-half-of-2013-Global-systemic-crisis-II-second-devastating-explosion-social_a14266.html ; &

 

http://www.valuewalk.com/2013/06/u-s-banks-crisis-plan-fed/ ...

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The World Has Never Seen Anything Like This In History

The World Has Never Seen Anything Like This In History | Gold and What Moves it. | Scoop.it

Robert Fitzwilson tells King World News:


The idea behind the wealth effect is that when people feel wealthier, they are inclined to spend more freely.  If spread across broad populations, that will create demand for goods and services resulting in strong economic growth.  Two of those important traditional forms of wealth are stocks and real estate.


The trouble with the plan is that money can be created, but controlling where it winds up is much more difficult.  What we now know is that the money largely winds up blowing bubbles in the stock, real estate and art markets as well as being channeled to the proprietary trading desks of the biggest global banking institutions.  A $119 million purchase of a house in Woodside, California, and a $95 million penthouse purchase in Manhattan are but just two examples.  Banks reporting zero trading losses on any day in the first quarter of this calendar year is another.


The money was created, but little of it reached the people from whom the wealth effect was expected.  Temporary wealth was created for holders of fixed income due to the disastrous policy of driving down interest rates, but retirees saw their income confiscated.  The income lost would probably have stimulated growth more than the increase in prices given to holders of fixed income.  Real estate did see a recovery in some parts of the U.S., but it was driven by financial firms buying huge blocks of properties for repackaging and securitizing.


So, the financial “Field of Dreams” created by our central banks has obviously failed. ...

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Bank analysts cut Gold forecasts again as US Fed tries to temper "taper talk"

Bank analysts cut Gold forecasts again as US Fed tries to temper "taper talk" | Gold and What Moves it. | Scoop.it

By Adrian Ash
BullionVault

London Gold market report

Precious metals rallied in London on Tuesday morning as European stock markets also bounced with commodity prices.

Gold and silver recovered half of yesterday's 1.7% and 3.1% drops respectively.

The US Dollar eased back on the currency market, as did major government bond yields.

"The gold price [is] trad[ing] erratically without any clear direction," say London bullion dealers Standard Bank in their daily note, "due to residual concerns over the Fed's likely reduction in monetary stimulus, coupled with growing concerns over Chinese banking liquidity."

The People's Bank of China said today it has lent short-term money to some institutions to keep money-market interest rates at a "reasonable level" - its first statement of action since short-term rates in Shanghai spiked above 10% earlier this month.

"There's room for further [gold] price declines before a meaningful consolidation," writes bullion market-maker Scotia Mocatta's strategist Russell Browne.

"Our target for the move is $1155-1156, and there are no big levels of support between here and there."

After major bank analysts last week cut their silver price forecasts, London bullion bank HSBC yesterday cut both its 2013 and 2014 gold price forecasts by 10%, down to $1396 and $1435 per ounce respectively.

"Clearly, recent market events show we did not cut [forecasts] enough" in previous revisions, HSBC added. ...

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Gold Closes In On 1976 Correction Bottom, A "Pure Giveaway" At The Time According To Billionaire Entrepreneur | Bull Market Thinking

Gold Closes In On 1976 Correction Bottom, A "Pure Giveaway" At The Time According To Billionaire Entrepreneur | Bull Market Thinking | Gold and What Moves it. | Scoop.it

As articulated here on Wednesday, gold is now approaching the 1976 bottom in terms of total percentage decline from its most recent top.

 

Following the FOMC-inspired decline of the last two days, we are now another 6% closer to that bottom:

 

The 1976 mid-cycle bear market in gold provides us with recent precedent of gold dropping by 48% in the middle of a bull market—only to rally by 900%+ once smart money fully re-positions itself.

 

It appears that re-positioning has been occurring all year long. ...

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The yellow peril | Resource Clips

The yellow peril | Resource Clips | Gold and What Moves it. | Scoop.it
Gold commentators on paper vs. physical, West vs. East, costs vs. revenue—and manipulation

by Greg Klein

 

“There may come a day soon where the markets sell off if one of the whiskers in Big Ben’s beard is out of place,” wrote market strategist Andrew W. Sutton in Goldseek on June 20. “Or perhaps if his tie is a bit crooked. Or maybe we end up with Janet Yellen as the next puppet in charge over at the local banking cabal and we fret about her hairdo.” Certainly gold, silver, platinum and palladium plunged that day and the reason, once again, was commonly attributed to Bernanke’s musings.

 

Rather bland musings at that. The Fed might ease quantitative easing later this year and might end QE by mid-2014. Yet that was enough to throw precious metals into a freefall. On June 21 former U.S. Treasury official Paul Craig Roberts told King World News that banks with inside info “cleaned up on this Fed statement. It’s entirely possible that’s what the Federal Reserve is doing is orchestrating events that make huge profits for the banks, and that this is the way it recapitalizes them.”

 

KWN recounted the sell-off with dramatic as-it-happened dispatches, like this one from trader Andrew Maguire: “Just off wholesaler calls. Most are too busy to talk at this time, but today [June 20] will be the largest volume day this year and possibly two years. Central bank purchases are almost certainly far in excess of paper sales. We are so close to the marginal cost of production that my contacts are saying the gates are wide open here to purchase all physical that is available….”

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Lear Capital: Silver Double Play Driving Physical Demand | Lear Capital Blog

Lear Capital: Silver Double Play Driving Physical Demand | Lear Capital Blog | Gold and What Moves it. | Scoop.it

It makes no sense.  Silver is now trading below its reported production cost.  A recent surveyof 8 top silver miners, shows an average all-in cost to produce an ounce of silver at $22 an ounce.  The scramble is on to own physical silver.

 

While Wall Street futures traders are wrecking havoc with the silver price, the demand for physical silver is going through the roof.  Investors, en masse, are now taking advantage.of a double-play in the silver market.

In times of economic uncertainty, rising debt and volatile markets, investors flee to both gold and silver as a safe haven to protect their wealth.  That’s the first part of the double play.

 

If, indeed the economy is in recovery, industrial demand for silver will skyrocket.  This is the second part of the double play.  Today, silver is used in the production of thousands of products.  Cell phones, computers, televisions, nearly all electronics today require silver to produce a quality product.

 

In medicine, silver is a strong bactericide and infection fighter. More practical uses are being discovered every day.  And, in solar energy, silver is the key ingredient of solar panels. Some say, in ten years, the need for solar silver alone could consume all of the annual silver production and more.

 

Supply is already under a great strain.  Three times this year, the U.S. Mint has run out of silver.  To the north, the Canadian mint has also experienced shortages and has had to ration sales of certain silver coins.

 

Did you know that above ground silver supply is now just one billion ounces?  At the beginning of time, the Earth’s supply of silver was 15 times greater than that of gold.  Now, the supply of above ground gold is 5 times greater than that of silver. Truly a sign that we are almost out.  One billion ounces today ...

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Jesse's Café Américain: The Last Time the Feds Devalued the Dollar To Save the Banks

Jesse's Café Américain: The Last Time the Feds Devalued the Dollar To Save the Banks | Gold and What Moves it. | Scoop.it

Here is a reprise of an article in which I take a closer look at the Gold Act of 1933 and the devaluation of the dollar against gold to recapitalize the banks.

As you may recall at the time the government withdrew gold from circulation it was the sovereign currency, and essentially 'owned' by the state, even while it was used by individuals as money.

This time gold has no official standing as money, and is considered private property, except perhaps for gold and silver Eagles which is a tenuous claim at best.

Therefore the government might be forced to use extraordinary and deceptive means to keep gold out of the hands of the people, and prepare the way for a revaluation of global currencies against gold is other ways. ...

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Does anyone want to buy gold right now?

Does anyone want to buy gold right now? | Gold and What Moves it. | Scoop.it
Nobody wants gold - well not at this price anyway, and given the current technical picture, gold seems to have lost its appeal, both as a safe haven asset and as a hedge against inflation. Somethin...
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Notes From Underground: Is The East Wind Prevailing Over the West, Chairman Mao?

In following up on my thoughts on the move in SHIBOR, I always want my readers to follow along with my thoughts when it comes to China. In my opinion, China takes on added significance because of its huge impact on the GLOBAL MACRO scene. In June 1998, President Clinton was heading to China for a very important meeting with HU JINTAO. Prior to Clinton’s June 25 trip, the U.S. Treasury intervened in the foreign currency markets on June 17 and halted the rise of DOLLAR/YEN by selling DOLLARS and buying YEN. The Asian contagion debt crisis had seen the YENweaken by 35% during the previous crisis and the Chinese leadership was concerned about the impact of the weakened YENon Asian exporters.

 

The U.S. Treasury acted prior to the trip, a trip, by the way, in which President Clinton spent a week in China and did not stop in Japan. The Chinese were able to exert a great deal of influence upon Bill Clinton as the U.S. was seeking to improve relations with the burgeoning world political and economic power. My point is that the Chinese no longer have to “ask” for others to exert economic influence for they can move to impact global markets on their own. China can rattle global markets and importantly world natural resource prices by threatening to slow their economy and spread tremors throughout the global financial system.SHIBOR+BERNANKE= THE UNWINDING OF A HEAVILY LEVERAGED SYSTEM, casting shadows of doubt where only a month ago so much certainty supported global credit and equity markets.

 

In another example of China’s recent unhappiness with the developed world, I refer to a June 6, 2013 article in the ...

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oftwominds-Charles Hugh Smith: This Is an Extraordinary Time

oftwominds-Charles Hugh Smith: This Is an Extraordinary Time | Gold and What Moves it. | Scoop.it

It's as if we have two economies: the simulacrum one of stocks rising dramatically in a few months, and the real one of household earnings (down) and hours worked (down).


It is difficult to justify the feeling that we are living in an extraordinary moment in time, for the fundamental reason that it's impossible to accurately assess the present in a historical context.

Extraordinary moments are most easily marked by dramatic events such as declarations of war or election results; lacking such a visible demarcation, what sets this month of 2013 apart from any other month since the Lehman Brothers' collapse in 2008?

It seems to me that the ordinariness of June 2013 is masking its true nature as a turning point. Humans soon habituate to whatever conditions they inhabit, and this adaptive trait robs us of the ability to discern just how extraordinary the situation has become. ...
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Maguire - World Just Witnessed Massive Shift In Physical Gold

Maguire - World Just Witnessed Massive Shift In Physical Gold | Gold and What Moves it. | Scoop.it

Today whistleblower Andrew Maguire told King World News that the world has just witnessed a massive and irreversible shift in the global balance of physical gold.  Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also spoke about the breathtaking gold and silver smash and what stunned investors around the world should expect next.  Below is a collection of what Maguire had to say to KWN in a mixture of communications since chaos erupted in key markets.


Maguire:  “Just off wholesaler calls.  Most are too busy to talk at this time, but today (Thursday) will be the largest volume day this year and possibly 2 years.  Central bank purchases are almost certainly far in excess of paper sales.  We are so close to the marginal cost of production that my contacts are saying the gates are wide open here to purchase all physical that is available....

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Gold plunges in Nepal during traders strike

Gold plunges in Nepal during traders strike | Gold and What Moves it. | Scoop.it

KATHMANDU(BullionStreet) : Gold shops in the Himalayan nation of Nepal reopened Monday after a 11 day strike organized by the Federation of Nepal Gold and Silver Dealers’ Association.

 

Gold prices dropped sharply in Nepal during these [sic] period, by as much as Rs 2500 a tola. On Monday, a tola of gold stood at Rs 50,500 as against Rs 53,000 a tola on on June 11 when the strike began.

 

Likewise, silver price was fixed at Rs 750 Monday, which stood at Rs 825 per tola on June 11.

 

The dip in prices attracted consumers and people were virtually sweeping gold stores across the country also on the fact that wedding season is not yet over in the country. ...

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The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb

The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb | Gold and What Moves it. | Scoop.it

Do you want to know the primary reason why rapidly rising interest rates could take down the entire global financial system?  Most people might think that it would be because the U.S. government would have to pay much more interest on the national debt.  And yes, if the average rate of interest on U.S. government debt rose to just 6 percent (and it has actually been much higher in the past), the federal government would be paying out about a trillion dollars a year just in interest on the national debt.  But that isn't it.  Nor does the primary reason have to do with the fact that rapidly rising interest rates would impose massive losses on bond investors.  At this point, it is being projected that if U.S. bond yields rise by an average of 3 percentage points, it will cause investors to lose a trillion dollars.  Yes, that is a 1 with 12 zeroes after it ($1,000,000,000,000).  But that is not the number one danger posed by rapidly rising interest rates either.  Rather, the number one reason why rapidly rising interest rates could cause the entire global financial system to crash is because there are more than 441 TRILLION dollars worth of interest rate derivatives sitting out there.  This number comes directly from the Bank for International Settlements - the central bank of central banks.  In other words, more than $441,000,000,000,000 has been bet on the movement of interest rates.  Normally these bets do not cause a major problem because rates tend to move very slowly and the system stays balanced.  But now rates are starting to skyrocket, and the sophisticated financial models used by derivatives traders do not account for this kind of movement. ...

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oftwominds-Charles Hugh Smith: Financialization = Inequality

oftwominds-Charles Hugh Smith: Financialization = Inequality | Gold and What Moves it. | Scoop.it

Financialization is the disease eating away the heart of the economy and what's left of democracy.


There are a number of factors behind the widening canyon of economic inequality, but the primary driver is financialization. Financialization has given those with capital and access to financier expertise ways to skim great wealth from the system without creating any value whatsoever. Those with a home that is owned free and clear and $500,000+ in a 401K or retirement account have more capital than the vast majority of Americans, but members of the upper-middle class have no access to the leverage and tools of financialization. In other words, financialization isn't a consequence of having capital: it's the consequence of having access to unlimited credit, leverage and low-risk, low-tax skimming operations (for example, tax codes enable hedge funds to declare income as low-tax long-term capital gains). From the financier point of view, the upper-middle class tax donkeys who keep all their investment capital in mutual funds are the marks who supply liquidity to the system. The wealthy who park money in hedge funds are marks of a higher order, as their cash enables fund managers to gamble with other people's money and then return a thin slice of the gains (if any, after fees) back to the investors. A carry trade is a classic skimming operation. The term is based on the difference between the costs of holding (carrying) one position and the gains earned by investing the proceeds elsewhere. ...
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Fed Won’t Reduce Bond-Buying, Will Continue Inflating Bubbles: Rickards

Fed Won’t Reduce Bond-Buying, Will Continue Inflating Bubbles: Rickards | Gold and What Moves it. | Scoop.it

Markets have been on a roller coaster ever since Fed Chairman Ben Bernanke dared to tell the world there was a potential timeline to start dialing back bond purchases beginning later this year. In the wake of the volatility, this week some Fed officials are trying to ease investor concerns, speaking out against the perception that the central bank has moved towards a tighter monetary policy.

 

Dallas Fed President Richard Fisher even compared market participants to “feral hogs.” Ouch.

 

Well Jim Rickards, senior managing director at New York financial firm Tangent Capital and author of the bestseller "Currency Wars" has some choice words for the Fed in return.

 

As China’s central bank captures headlines for quelling concern over a cash crunch there, Rickards tells The Daily Ticker, “it’s ironic, the greatest central planner in the world is not the communist party of China – it’s Ben Bernanke and the [Fed’s] board of governors.”

 

Rickards argues in the process of trying to create a “wealth effect” – where people feel richer due to rising asset prices and so spend money helping the economy – the Fed is inflating asset bubbles in housing and stocks.

 

“The market was very bubblicious the first four months of the year, so there’s part of the Fed that wants to let a little air out of the tires,” says Rickards. ...

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Global Chaos Signals World Currency System Will Be Recast

Global Chaos Signals World Currency System Will Be Recast | Gold and What Moves it. | Scoop.it

As the two-year cyclical bearish phase in the gold and silver markets is coming to an end, today John Embry told King World News increased global chaos now signals “the entire world currency system” will be recast.  Embry also spoke with KWN about how Western propaganda is being used to paint a false picture about the harsh reality of what is really taking place around the world.  Below is what Embry had to say in this powerful interview.


Embry:  “What’s going on right now in gold and silver is preposterous.  The gold price has been driven down roughly $600 from its peak in August of 2011.  But if you really examine what’s unfolded in that ensuing period, there isn’t anything that would justify the gold price going down to any extent, let alone $600.


This has been a wonderfully orchestrated maneuver by the bullion banks, the Western governments, and their respective central banks.  And it’s destroyed the psychology of most people that don’t understand the gold market extremely well....

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PM FREEFALL: What should you do? - The Prospector Blog

PM FREEFALL: What should you do? - The Prospector Blog | Gold and What Moves it. | Scoop.it

Are you losing faith in physical silver? The question I hear most is “why”. Why are precious metal prices dropping when all the fundamentals are in place for it to rise? International economic volatility, threat of regional wars turning worldly, a flood of paper currency; the list is long and growing. The answer, my friends, is obvious, yet concerning, and the topic of today’s post.

 

It is unfortunate that we invest so much time, effort, and space in order to justify the only tried and true worldwide currency.  I agree, it’s impossible to ignore such  volatile erosion as we’ve witnessed over the last few months. No doubt this decline is disheartening to those new to PM (precious metal). For this reason alone we’ll invest time and space in hopes of answering why silver is dropping, should you buy now, and when silver will rise again.


Anyone with $11,700 can buy 500 ounces of American Silver Eagle bullion and have it shipped to their door (or local USPS). Comparing today’s silver offering to March 2011 is astonishing, to say the least. I founded TPS (The Prospector Site) in 2011 when the same 500 bullion ounces sold for over $21,000…… crazy! Precious metal experts, who coincidentally also pedal bullion related assets, can spin it anyway they desire but the loss, at least at this point, is very real.

 

In Why Silver & Gold Will Go Higher I expose the mystery behind silver and gold’s true value. Each coin in existence has literally two sides, value speaking. The first side is intrinsic, or has inherit value. The intrinsic value includes the grand total of effort to mine, mint, and distribute each PM ounce. No different than the land, concrete, lumber, wire, roofing and labor value it takes to build a home or an apartment.

 

The second side of a metal coin offers value too, but this value is much more subjective than the intrinsic counter side. This side is all about demand, nothing more. If demand raises so does the coin’s value. If demand declines well, I guess, today’s PM market is the best proof as we all watch silver/gold retreat. ...

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Illegal gold mining profits for rebels in Colombia five times larger than cocaine

Illegal gold mining profits for rebels in Colombia five times larger than cocaine | Gold and What Moves it. | Scoop.it

The Revolutionary Armed Forces of Colombia (FARC) and a new generation of drug gangs (known locally as “Bacrims”) are increasingly turning to gold mining to finance their terrorist acts, confirmed Colonel Hector Paez, acting director of the country’s rural police division.

 

In an interview with Bloomberg last week, Paez said that current profits from illegal gold mining are five times greater than returns from cocaine for rebels groups operating in Colombia.

 

“A kilogram of cocaine can sell for about 2,570 in the Colombian jungle, while a kilogram of gold can fetch 19 times that, or similar to global market prices,” Paez was quoted as saying.

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Jesse's Café Américain: What Kind of Fools Are Buying Gold?

Jesse's Café Américain: What Kind of Fools Are Buying Gold? | Gold and What Moves it. | Scoop.it

On the whole, the world's central banks are now net buyers of gold, and have been for some time, after being net sellers for over twenty years.

Russia is one example.

Why do you think they are buying it?   They don't understand money?

They don't know what they, and some of their associated central banks, are planning to do to recapitalize the deteriorating global financial system and dollar reserve trade regime?

Did they forget to watch CNBC to find out what they really ought to be doing?

I hear that J P Morgan has stealthily gone net long gold now after beating down the price.   Would having the biggest banks go long gold and then letting it be revalued higher be one way to recapitalize them?  It seems as though recapitalizing them through insider information is the mode du jour.

Silly idea huh?  Well that is what the did in 1933.  They took the gold out of ...

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Gold Trader: "Wall Street's Put Options [On Gold] Paid Off Handsomely Before The June Expiration." | Bull Market Thinking

Gold Trader: "Wall Street's Put Options [On Gold] Paid Off Handsomely Before The June Expiration." | Bull Market Thinking | Gold and What Moves it. | Scoop.it

Following continued selling pressure and another major downward thrust in the price of gold last week, recent interview guest Gary Savage, shared some powerful commentary in a note to subscribers over the weekend.

 

Speaking on Thursday’s smash of the gold price, Gary noted that;


“About a month ago I vaguely remember something coming across my email…about a huge position in June GDX & GLD put options.Now I see why gold was held below $1400, and what was driving the completely irrational $75 drop in the pre-market Thursday morning. Wall Street was making sure their put options paid off handsomely before the June [21st] expiration. ...

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Biderman's Daily Edge: Investors Bailing Since Taper Time Started, US Economy Nowhere Near Recovery - Biderman's Money Blog

Biderman's Daily Edge: Investors Bailing Since Taper Time Started, US Economy Nowhere Near Recovery - Biderman's Money Blog | Gold and What Moves it. | Scoop.it
TrimTabs' Charles Biderman offers analysis on why the US economy is not near recovery and examines the underlying problems with the Federal Reserve.

 

By Charles Biderman

 

Fear and greed rule markets. Always have. Always will. Since the start of this year, when the Fed was creating $4 billion of new money daily, $85 billion monthly and $1 trillion annually, and saying it would be keep doing that forever, investors got very greedy. Investors kept buying stocks, bonds, emerging markets, gold, all that stuff. On May 22 almost all markets were at multi-year if not all time highs.

 

That all changed May 22, when Taper Time began. All it took was for Fed Chairman Bernanke to say that the Fed sometime soon it will be creating less new money daily. That is if economic growth improves as the Fed is predicting.

 

That simple comment created a tsunami. First Japanese stocks started plunging – remember I have been saying in these videos that Japan is the canary in the central bank money creation coal mine. Why did Japanese stocks plunge? Because Japanese trust banks, realizing how important Fed money creation is to overall investing, panicked and sold such huge amounts of Japanese stocks as to overwhelm US buyers. US buyers had been the big net buyer of Japanese stocks ever since the Bank of Japan announced an easing boost. Guess what, Americans are now also selling Japanese and emerging market stocks. ...

 

- See more at: http://charlesbiderman.com/2013/06/24/bidermans-daily-edge-investors-bailing-since-taper-time-started-us-economy-nowhere-near-recovery/?utm_source=feedly&utm_medium=feed&utm_campaign=Feed%3A+TrimtabsMoneyBlog+%28TrimTabs+Money+Blog%29#sthash.GHI6Q7B4.dpuf

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oftwominds-Charles Hugh Smith: Bifurcation Nation

oftwominds-Charles Hugh Smith: Bifurcation Nation | Gold and What Moves it. | Scoop.it

It's as if we have two economies: the simulacrum one of stocks rising dramatically in a few months, and the real one of household earnings (down) and hours worked (down).


It is difficult to justify the feeling that we are living in an extraordinary moment in time, for the fundamental reason that it's impossible to accurately assess the present in a historical context.

Extraordinary moments are most easily marked by dramatic events such as declarations of war or election results; lacking such a visible demarcation, what sets this month of 2013 apart from any other month since the Lehman Brothers' collapse in 2008?

It seems to me that the ordinariness of June 2013 is masking its true nature as a turning point. Humans soon habituate to whatever conditions they inhabit, and this adaptive trait robs us of the ability to discern just how extraordinary the situation has become.
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Losing Control

Losing Control | Gold and What Moves it. | Scoop.it

Do you ever dance with the devil in the pale moonlight?

 

Helicopter Ben Bernanke made the decision to dance with the devil in March of 2009. After four years of false prosperity and stability, The House That Ben Built is shaking at its foundations.

 

Simply put...When you intervene in a market...any market...you are playing with fire. All markets are made up with equal parts buyers and sellers. An equilibrium is reached at a point we call "price". For decades, Western Central Banks and the Bank of International Settlements have played the dangerous game of attempting to "centrally plan" nearly every market in the world. They've attempted to manage currency markets, fixed income markets and equity markets, and, of course, the currency crosses of gold and silver.

 

After The Great Financial Crisis of 2008, the Federal Reserve Bank of The United States made the disastrous mistake of embarking on a policy of Quantitative Easing. This of course, regardless of what The Bernank wants to call it, is the direct monetization of the ongoing debt and deficit of the U.S. federal government. The market for treasuries has since been distorted by this near-constant Fed intervention. The buying of treasuries and treasury futures was encouraged by creating the appearance of a riskless trade. The mindset was this: "Why worry about falling prices and rising rates? The Fed has your back. They will not allow bond prices to fall."

 

How and why anyone expected this to end any differently than what we are currently seeing is beyond me. The Fed has so completely distorted the risk dynamic of the treasury market that the trade is left without any connection to reality and that "equilibrium" stated above. Hence, when suddenly The Fed suggests that sometime in the near future they will NOT have your back, everyone ...

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Former US Treasury Official - Fed Orchestrated Gold Plunge

Former US Treasury Official - Fed Orchestrated Gold Plunge | Gold and What Moves it. | Scoop.it

Today a former US Treasury Official told King World News that the U.S. Federal Reserve orchestrated Thursday’s massive gold plunge which shocked market participants.  Dr. Paul Craig Roberts also warned that we are on a path which will send the U.S. into “total chaos.”  Below is what Dr. Roberts had to say in this powerful interview.


Eric King:  “We had the Fed out with two straight days of propaganda and that was followed up by a smash in gold and silver.”

 

Dr. Roberts:  “Yes, that’s true.  It shows how irrational markets are.  In fact, there was nothing new in the Fed’s statement.  The markets have known for a long time that at some point the Fed is to taper down its bond purchases and eventually stop them.


So the lack of any real information in the statement makes the market reaction seem puzzling.  And it actually suggests that the too-big-to-fail banks had inside information, the Fed’s statement, and used it to short the stock, bond and gold markets....


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