Two more Government propaganda agencies released extremely misleading data this morning.
First, the Census Bureau released its estimate for April retail sales. The headlines flashed in big bright lights that retail sales increased a "seasonally adjusted" .1% over March. The March number was originally reported at -.4% but was revised lower to -.5% - or down from February.
Now here's the interesting part: if you go by the not seasonally adjusted estimated number, sales for April actually declined from March by 2.5%. That's quite a bit different from the fabled headlines everyone will see or hear today. Here's the data: LINK And a negative reading is more consistent with the wholesale sales number released last Thursday by the Commerce Department, which showed that wholesale sales posted their biggest drop in four years: LINK
You would at least think that if the Government was going to paint a big lie, they could at least get their various statistical departments to cooperate with each other so that the lies are consistent across the data.
An even bigger joke is that Bloomberg News reported today that Wall Street dealers are now forecasting that the U.S. Treasury will reduce the size of upcoming Government Treasury auctions due to "soaring revenue" and based on the CBO's recent estimate that the Government will run only an $845 billion deficit for fiscal 2013.
Now, part of the problem with this idea is that for the first 7 months of FY 2013, the Federal debt load has gone up by ...
Click over for the rest. I don't know about you but I think we should all be investing in hip waders as well.
Bullion traders seem to have taken seriously the finance ministry’s efforts to discourage gold consumption as it was putting pressure on the current account deficit. If not investments, at least trading in bullion has shrunk in the last couple of months.
TheProspectorSite.com exists to provide proof via current events and history that precious metals are one of the best ways to preserve and grow your wealth.
The correction each must recognize affects us individually, and in many ways. Far too many have made the prudent step to buy physical PM (precious metal) but are at risk of becoming a short-term PM seller stemming from a lack of overall preparedness. In other words, they will sell their metal, to continue living a life of normalcy, just when they most need PM. This could come from desperation or it could come from monetary ignorance; it’s just too soon to tell .
The collapse (as most put it) is happening as you read this….. all in slow motion. Ask the man on the street and they will quickly point out a lack of good paying jobs. Ask a banker and they will say the problem is a lack of credit. Ask a politician and they will lay blame on the opposing party or a previous administration. The fact is all the above are 100% correct, but this does nothing to help our situation.
Nothing will stop today’s course of correction because too few are willing to acknowledge the destructive nature of overpopulating a currency. This neglect is building into a monetary civil war within the United States. The type of person willing to trade dollars for PM suffers great anxiety by living in a country that is no longer willing to address our economic challenges with rationality. This is why we’re reading about states proposing legislation in hopes of creating an alternative currency (Utah, Arizona, etc).
Our country has far more to lose from conflict than economic collapse. A divided nation is vulnerable from within, vulnerable from afar, and everything between. ...
It is clear why Chairman Bernanke has not expressed enthusiasm about being reappointed as Chairman. In this meltdown of all meltdowns, he has accomplished keeping depositors free from loss or confiscation and temporarily plugged the hole in the OTC derivative meltdown phenomena. Both of these apparently are no longer possible.
The fever of activity by monetary authorities internationally would indicate that some financial flood gate is straining.
There is one thing you need to know, and one thing only. Get out of the system or financially perish. The worst of your problems is solved by your ethical and legal exit from the system while you still can. This is why I am holding these meeting internationally, not because I like to give up my time or add onto the traveling that is demanded of me.
Submitted by Michael Snyder of The Economic Collapse blog,
The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate. So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? When that moment arrives, it will represent the end of the paper gold scam.
Many believe that the recent takedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them. Instead of cooling off demand for precious metals, it has unleashed a massive "gold rush" all over the globe. Meanwhile, word has been spreading among wealthy families in both North America and Europe that they had better grab their physical gold out of the banks while they still can.
This is creating havoc in the financial community, and at least one major international bank has already declared that it will only be settling those accounts in cash from now on. The paper gold scam is starting to unravel, and by the time this is all over it is going to be a complete and total nightmare for global financial markets.
For years it has been widely known that the promises that banks have made regarding their gold far exceed their actual ability to deliver, but we have never reached a moment of such crisis before. ...
"Inflation is a state of affairs in which there is too much money," Jim Grant notes in this Bloomberg TV interview, however, "It's not too much money chasing too few goods," he corrects the misnomer, "the thing this money chases is variable." Whether it is Iowa farmland, housing, stocks, or bonds, central banks are stuffing us with it. Yes, equities are high, but Grant explains, "beneath the surface of things or not so far beneath the surface of things," it is not at all good, adding that, "Central bank 'original sin'," is akin to Revolutionary France, and he shows no concerns over Gold's recent dip, noting "a general fatigue animus towards gold," that seems predicated on more confidence in central bankers; to Grant, "that confidence is utterly misplaced!" ...
Since the beginning of the year and through last night, there has been 300 tonnes of gold removed from GLD and 90 tonnes of gold from the Comex removed. In the 12 years that I've been doing the precious metals sector, there has never been such an extraordinary, visible movement and disappearance of gold like this. Hugo Chavez, on his death bed, repatriated 200 tonnes of gold back to Venezuela from Europe in about four months, but we know where it went. It didn't disappear. The German Bundesbank requested the repatriation of some part of the German gold held by the NY Fed in NY and, after several days of negotiations, Bernanke agreed to send 300 of the 1800 tonnes back - over the next 7 years.
My prediction: That gold will never see inside of a ship hull.
Something ugly is going on and, at least for me, it explains why the western bullion banks are making a concerted and aggressive effort to hold down the price of gold using printed paper Comex futures contracts. (about 80% of all downward price movement in gold/silver since Jan 1 has occurred during Comex floor trading hours). ...
An "unsubstantiated" rumor spread through the markets around noon Denver time today that the Wall Street Journal's mindless mouthpiece for the Fed, Jon Hilsenrath, was going to print an article reporting that the Fed was considering tapering down QE soon. For those of you who don't know, the Fed was using Hilsrenrath - at least for awhile - to telegraph impending policy decisions.
When this rumor hit, the dollar jumped a lot higher and every other market tanked hard. Let's think about the implications of the Fed slowing down its purchases of $85 billion in Treasuries and housing mortgages each month. First, the housing market would absolutely collapse. That there is a real housing bounce is an absolute joke. That the Fed has engineered a speculative frenzy in certain markets by injecting $40 billion per month into the housing market is true. But what if the Fed were to stop that? Think it about it everyone. I have a neighbor who has decided to buy and flip a house. I would love the opportunity to see what happens if the Fed pulls QE before this guy can get the house renovated and back on the market. Please Ben, make my day.
How about if the Fed stopped buying $45 billion per month in Treasuries? Anyone care to think about what that would do to the Government's cost of funding all of its welfare programs and imperialistic military activities? $45 billion per month means that the Fed is buying more than 50% of all of the new Government debt that is being issued every month. If the Fed takes that bid away, the cost required to induce outside buyers to replace the Fed would drive interest rates up significantly. It would likely throw our system into a depression. If that weren't the case, the Fed wouldn't need to buy Treasuries at all.
Go ahead Ben, stop all QE. Let's see what happens. You have been making the claim that ...
"You will recall a couple of weeks ago in one of the KWN interviews I pointed out that when people ask me when gold is going to move I say, ‘June or July of 2000. Gold has moved from $252 to just shy of $1,500 an ounce. A five-fold move.’
A five-fold move in 12 or 13 years and we’re supposed to be apologizing for that. If you had the ability to predict a five-fold move in the next 12 years, how would that make you feel? It would make me feel pretty good. The point of gold is to preserve one’s purchasing power...."
"On May 7-8, 2013, Istanbul (Turkey) will host the Global Finance in Transition conference. The event is organized by the Central Bank of the Republic of Turkey jointly with the Reinventing Bretton Woods Committee and the Russian Ministry of Finance.
Representatives of G20 finance ministries and central banks, international organizations, research institutions and businesses will take part in the conference. Head of Turkey's Central Bank Erdem Basci, Deputy Minister of Finance of Russia Sergey Storchak and Executive Director for the Reinventing Bretton Woods Committee Marc Uzan will give the opening remarks at the conference.
Five panel discussions are planned as part of the event. They will cover the international financial architecture, in particular, changes in the flow of global investments, local bond markets and growth in emerging economies, incentives and determinants of investment and other issues. In addition it is expected that new instruments and incentives for making the global financial system safer will be suggested during the forum."
Did you know there was such a thing as the "Reinventing Bretton Woods Committee"? Wouldn't you like to know how the ...
Click over for the rest of the post and all the charts on silver and gold.
I overheard a conversation in the gym last night wherein the comment was made, “The Dow is up from a low of 6500 because of administration policies.” The comment was made in reference to the Dow breaking 15,000, in the context of a recovering economy and in support of the administration. I refrained from making any comment of my own and to instead vent here where readers have the same right to discard my opinion and stop reading just as I stopped listening.
I think a quick look at the real facts are in order. Prior to the debt crisis, the Dow reached a high of 14,164.53 on October 11, 2007. As we came to learn, that was an artificial high achieved through the spending of money that never existed. Money that was created out of thin air.
At that time, money needed to fuel the stock market and the economy, was acquired through loose money policies – an artificial supply. Home prices were a prime example. Home values were greatly exaggerated, thus allowing people to borrow against equity that really did not exist. The markets and the economy became dependent on this money supply. So much so that when the supply was exhausted and the economy began to waiver, they had to concoct things like “No-Doc” Loans, “Stated-Income” Loans and “Cash-Out” Financing.
Cash-Out financing was one of my favorites. It allowed people to buy a house (or several) without a down payment and without any documentation of assets and without the need to verify any income. Ironically, the income was to be derived from the purchase of the home, which was based on overstated appraised values.
These windfall profits were then lured into the rising stock market, where stock investing was believed to be a no-brainer. It was magic. Everything was rising in value, fortunes in paper wealth were blossoming. Indeed it was magic and as we all know, magic is nothing more than an illusion with smoke and mirrors thrown in to further deceive. Nobody in their right mind, today, believes the credit crisis was not caused by artificial liquidity – the creation of money out of thin air. ...
Today one of the savviest and well connected hedge fund managers in the world told King World News that global banks are involved in a criminal conspiracy in the gold market. Outspoken Hong Kong hedge fund manager William Kaye also spoke with King World News about what is really taking place behind the scenes in the war on gold. Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part II of an extraordinary written interview series which will be released today.
Kaye: “The paper gold price has been driven well down. We’re nowhere close to when gold peaked above $1,900. We’re in the low $1,400s as I speak now, Eric.
So price has gone down, but what about volume (in gold)? Well, I can tell you that volumes in China year over year are up four to five times. I can tell you that volumes in Thailand, a similar amount (to China, up four to five times). ...
Click through for the rest of the interview. This has been causing me a big itch lately. There's a disconnect for sure between the markets. Certainly is strange to put it mildly.
Emergency Manager Kevyn Orr says the city of Detroit's cash-flow crisis makes it "insolvent" and unable to borrow more money to mask over debts being made worse by skipping millions in payments for retiree pensions and health care.
After 45 days on the job, Orr's initial assessment of Detroit's perilous finances is laid bare in a 41-page report to be delivered today to state Treasurer Andy Dillon.
Calling it "a sobering wake-up call about the dire financial straits the city of Detroit faces," Orr said he will use the report as a baseline for paring down the city's $15.6 billion in debt and long-term liabilities.
Orr, a Washington, D.C., bankruptcy attorney, did not use the word "bankruptcy" anywhere in his report but said the city is "insolvent" and has "effectively exhausted its ability to borrow" after years of issuing long-term debt to pay its bills. Previously, he has said he hopes to avoid a Chapter 9 filing.
The report hints that city employees who were not hit by last year's wage reductions could face pay cuts in the near future ...
The word firefight came to your editor’s mind when reflecting on the collapse witnessed in gold during the month of April. On Friday, April 12th we saw a tremendous 5.16% drop, only to be followed by a total smash of 8.99% at the open on Monday the 15th.
In total, these two trading days represented an over 14% ($200+) collapse in the price of gold—the most volatile and frightening period for many since the recent bull market in gold began.
Indeed, Monday the 15th represented the single biggest day of nominal trading losses in gold’s history. (See chart on website)
...there must be a simmering problem coming to the boil. Something upset the market today and caused a large rally in the DOLLAR. It could not have been the rumor of the Jon Hilsenrath piece about the FED moving to tapering of QE for that is an old story. (I am really getting tired of all the nonsense tweets, especially the Hilsenrath leaks. This is definitely something to pay attention to tomorrow to this if the G-7 gains traction.)
***In another piece, Der Spiegel Online ran a story, “German Central Bank Head Blasts France.” I will continually stress that the main political battle may be the Bundesbank versus the EU. The German central bank is the bastion of “hard money” and is fighting hard about the German polity surrendering monetary and financial rectitude to the French and other profligate countries. The European Commission is prepared to grant France two years to get its budget deficit in-line with EU rules. President Jens Weidmann admonished the EU Commission and German politicians: “To win back trust, we can’t just establish rules and then promise to fulfil them at some point in the future. They have to be filled with life,” Weidmann said.
What seemed to have set Weidmann a flutter was France’s Finance Minister Moscovici’s remarks after ...
Chinese consumers led by their old ‘aunties’ have reportedly bought over 300 tonnes of gold worth more than $16 billion since the price crash last month. There have been queues at the nation’s many gold shops. Perhaps the Chinese aunties have heard the story about what happened to the Russian babushkas in the 90s.
Basically the babushkas are largely pensioners on fixed incomes and in the 1990s their income was devastated by a massive inflation that also destroyed the savings of the communist era. If only they had switched their money into gold then their savings would have been preserved. ...
The once-mighty United States is now the most indebted nation on Earth. In round numbers, here are just some of the vital statistics as the patient dies:
National debt: $17 trillion, or $50,000 per man, woman and child, or $150,000 per taxpayer. Annual federal deficit: $1 trillion. Medicare/Medicaid/Obama”care”: $1 trillion a year. Social Security: another $1 trillion a year. Defense: two-thirds of a trillion. Unemployment handouts: $2 billion per working day. Debt interest: $1 billion per working day. Federal pensions, ditto.
Now for the big numbers. Your government’s Social Security liability is as big as the national debt: $17 trillion. Its prescription drug liability is $22 trillion. Then there’s the Medicare liability of $86 trillion. Total unfunded liabilities of the U.S. government are $125 trillion.
Net assets for each U.S. citizen are $300,000. The net liability of the U.S. government, shared among its citizens, amounts to almost four times that: $1.1 million a head. And the government’s debt is growing at $1 million every 45 seconds. To cover its annual deficit, it is printing $1 trillion a year of currency that is not backed by any asset whatsoever. ...
“It never gets old”. After nicely digesting Wednesday’s big up move in gold during the Crimenex regular trading session yesterday, a so-called rumor article to hit saying QE is going to end led to a sell-off in gold in the usually thinly traded Access Market. Now, what should be viewed as “gold friendly”, the gigantic easing in Japan by its currency falling, is instead spun into a negative for gold. As I told Bill Murphy late yesterday, in this world there’s no such thing as gold friendly.
Eric King: “John, what are you hearing about the physical market for gold?”
Hathaway: “Well, it’s just gangbusters. You hear about shortages of coins. Sometimes that can be attributable to the mints not having enough equipment. Bars, the same thing. I read recently that more than half of the gold which has been ordered has been on a delayed delivery of some sort.
Everything I get confirms the activity is overwhelmingly on the buy side....
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