Gold and What Moves it.
84.6K views | +0 today
Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
Curated by Hal
Your new post is loading...
Your new post is loading...
Scooped by Hal
Scoop.it!

The Most Important Take Away From The Cyprus Situation « Jim Sinclair's Mineset

The most important take away from the Cyprus situation is the following sentence from my interview with King World News; "Because of that, any attempt to shift the weight of bank solvency to depositors has failed. This was the grand experiment which was to be the defining event where the financial shift from the onus of insolvency was to be placed on the shoulders of depositors rather than on quantitative easing." This now wrong cause was the reason why gold had three major blocks thrown at it by the hedge funds at $1775 to $1800 as it was about to break into new high ground.

 

Information was given to this financial clique that QE would be reduced as bailouts turned to bail-ins, shifting the pressure of holding the Western world financial system together to the depositors and away from central banks. The enormous short by hedge funds was based on the now impossible-to-continue retreat of the central banks to make the depositors the source of bailout funds.

 

Therefore the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover. Bravely, these short are taking a gutsy position by trying to make gold’s move above $1600 look weak, but it is not.

 

The shorts major position of all time was based on what is NOT TRUE. They were totally convinced that they had us and certain gold writers supported their view. Now they do not have us, but on the contrary QE to infinity has its foundation solidly set in cement.

 

Respectfully, 
Jim

more...
No comment yet.
Scooped by Hal
Scoop.it!

Jim Sinclair - Cyprus Disaster Is Much Bigger Than Being Reported

Jim Sinclair - Cyprus Disaster Is Much Bigger Than Being Reported | Gold and What Moves it. | Scoop.it

Today legendary trader Jim Sinclair told King World News that the Cyprus disaster is much bigger than what is being reported and the implications are stunning.  Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had this to say in this extraordinary and exclusive KWN interview:

 

Sinclair: “If people believe that $13 billion is the total of this bailout, they are out of their minds.  $130 billion is not the true total of even the Russian deposits in Cyprus banks.  One important Russian businessman, in his various business enterprises, would have $100 billion on deposit himself.  10% of all deposits in Cypress could be $500 billion or more because Cyprus is the banking entity for Russia, not Switzerland or Grand Cayman.

 

The Central Bank of Cyprus doesn't even know how big the Russian deposits are because it is held as secret at the behest of the Russians.  It is a secret banking system set up for the Russians, by the Russians, and the IMF has just taken a large bite out of that elephant.  

 

Because of that, any attempt to shift the weight of bank solvency to depositors has failed.  This was the grand experiment which was the defining event where the financial shift from the onus of insolvency was to be placed on the shoulders of depositors rather than on quantitative easing. ...

Hal's insight:

Click over for the rest.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold price scales $1,600 as Europe shoots itself in the foot | MINING.com

Gold price scales $1,600 as Europe shoots itself in the foot | MINING.com | Gold and What Moves it. | Scoop.it

by Frik Els:

 

Gold scaled the $1,600 an ounce level for the first time in three weeks on Monday as investors, worried about the fallout over an EU move to seize the savings of Cypriots, turn to gold as a safe haven asset.

 

By lunchtime gold was up $14.20 an ounce at $1,606.80 after weekend reports showed Cypriot citizens clamouring to withdraw money from  bank accounts following a €17 billion bailout deal with the EU reached late on Friday.

 

While the deal is small by comparison to other bailouts reached with other struggling economies in the European bloc, it called for an €7 billion of the estimated total to come from seizing a portion of saving accounts.

 

Anger – much of it directed at German chancellor Angela Merkel – has not only been rising among ordinary Cypriots, but also in Russia because many wealthy Russian prefer to stash their cash on the island nation rather than in rouble inside their country. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Stealing Really Is That Bad | Michael Ashton | Safehaven.com

Stealing Really Is That Bad | Michael Ashton | Safehaven.com | Gold and What Moves it. | Scoop.it

by Michael Ashton:

 

Cyprus banks are closed until Thursday. At this point, the Cypriot legislature has not voted on any particular scheme of theft, although some Eurozone officials seem to think that it would be okay to only rape the people who have deposits bigger ...

 

... So it's the Russian and the Greek depositors that you really wanted to target? Then why not target anyone who is Russian or Greek? I would go further and say that it isn't the Russians' fault that Cypriot banks were willing to take their money, and not the Greeks' fault that European oversight of Eurozone banks was so fractured that Cypriot banks sought out these deposits as they grew and became unsustainable, ungainly creations. Being a Greek or a Russian with money isn't a crime - unless you're a Socialist. And if you're a Socialist, then it isn't the Greek or Russian part...it's the "having money" part.

But they don't seem to see why people are concerned.

 

Now, in the micro picture none of those reflections are very market-oriented, but in the macro picture they certainly are. We all have to deal on a day-to-day basis with the reality that markets are nakedly manipulated by central banks these days (with fancy names like "portfolio balance channel," for example) ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

GOVERNMENT “ADJUSTED” HOUSING STARTS SURGE « The Burning Platform

GOVERNMENT “ADJUSTED” HOUSING STARTS SURGE « The Burning Platform | Gold and What Moves it. | Scoop.it

Zero Hedge pokes another hole into the propaganda being spewed by the government and MSM about the fantastic housing recovery. Seasonal adjustments should consistent over the years since it is seasonal. Inquiring minds want to know why the seasonally adjusted numbers over the last three months are so dramatically larger than the previous two years. I’m sure Steve Liesman and the rest of the CNBC crew of bimbos and shills are digging deeply into this discrepancy.


Zero Hedge didn’t point out another fact from the press release. The MSM declares that housing starts were up 26% over last February, indicating strong demand from people wanting to buy homes. A quick perusal of the NON-ADJUSTED DATA reveals a different story. There were 96,000 housing starts in the country during February versus 78,700 last year. That is a 22% increase. Now for the best part:

Single family starts were 45,800 versus 44,200 last year. Only 48% of all the starts are homes people are going to buy. And they are only up 3.6% over last year.


The surge in housing starts are for apartments being built because very few people can afford ...

Hal's insight:

Click through for the rest.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Video: Q15: China Gold on China’s gold reserve policy CCTV News - CNTV English

Video: Q15: China Gold on China’s gold reserve policy CCTV News - CNTV English | Gold and What Moves it. | Scoop.it

Click through to watch the video.

Hal's insight:

Hat tip to https://twitter.com/Silver_Watchdog/status/314011444272316418

 

It's an interesting discussion. Of course I can't help but question, though they report the amount they have and how other nations have more, if in reality they are pursuing a much more active behind the scenes purchase program.

more...
No comment yet.
Scooped by Hal
Scoop.it!

After The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE

After The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE | Gold and What Moves it. | Scoop.it

Cyprus is a beta test.  The banksters are trying to commit bank robbery in broad daylight, and they are eager to see if the rest of the world will let them get away with it.  Cyprus was probably chosen because it is very small (therefore nobody will care too much about it) and because there is a lot of foreign (i.e. Russian) money parked there.  The IMF and the EU could have easily bailed out Cyprus without any trouble whatsoever, but they purposely decided not to do that.  Instead, they decided that this would be a great time to test the idea of a "wealth tax".  ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Sinclair - One Of The Most Important Events In History & Gold

Sinclair - One Of The Most Important Events In History & Gold | Gold and What Moves it. | Scoop.it

... “What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’  Russian ‘black money’ is KGB money, now in business.  The leader of Russia (Putin) was a former KGB official.  Whose money do you think they have taken?  This is the biggest mistake the IMF could possibly have ever made.” ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Turk - Money Is No Longer Safe In Banks After Cyprus Theft

Turk - Money Is No Longer Safe In Banks After Cyprus Theft | Gold and What Moves it. | Scoop.it

Today James Turk told King World News there are bank runs happening in Europe once again.  Turk also believes this is a wake-up call to all bank depositors around the world.  He also stated that physical gold and silver buyers have now become more aggressive and are in a position to overwhelm the manipulators and central banks because of the Cyprus theft.  Here is what Turk had to say in this exclusive interview:


“There are bank runs here in Europe again, Eric.  Today is a national holiday in Cyprus, so the banks are closed.  But people are lining up at ATMs to get their money out before the ATMs run dry.  And there is talk that a bank holiday will be declared, possibly keeping them closed for days.

 

Depositors in Cyprus are going to lose some of their money as part of a proposed EU bailout of that country announced over the weekend, which like a a number of other countries, along with its banks, are insolvent and teetering on the edge of bankruptcy. ...


more...
No comment yet.
Scooped by Hal
Scoop.it!

COMING TO A BANK NEAR YOU « The Burning Platform

Make no mistake about it, this will happen in the United States at some point in the not too distant future. This is theft pure and simple. If you think the money you have in banks is yours, read this story and realize they will abscond with it whenever they choose to change the rules. Do you think your 401k is safe from the grubby hands of the government? You are naive. The ruling class don’t care about rules, laws or good faith. They have already pillaged most of the wealth in this country and they will not hesitate to steal the money out of your bank account. Bankers and politicians in Europe will do whatever it takes to protect the interests of the rich and powerful oligarchs. The bankers and politicians in this country are no different.


It will happen on a weekend. They will shutdown the ATMs. They will shut down the ability to electronically transfer money. Banks will close their doors. They will not announce their intentions in advance. They will proclaim that their actions are being done for the good of the country. In reality, they will be stealing your money in order to maintain their control, power and wealth. This blatant act of criminality being committed against the citizens of Cyprus by the Eurocrats is a warning shot to all citizens of the debt saturated, banker controlled developed world.


If you are one of those who believe it can’t happen here, then you haven’t studied history. It was exactly 80 years ago this month when FDR announced a banking holiday and declared that possession of gold was immediately illegal. The government set the price at which American citizens would receive when they handed over their gold to the government. Federal agents broke into safe deposit boxes and took the gold. It is much easier to steal our wealth today. In an instant they can electronically vaporize your wealth. 


As the oligarchs grow more desperate they will grow more extreme in their efforts to retain power. This is why they are trying to take our guns. They do not want an armed populace resisting when they ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Lear Capital | Media | Articles - Stocks, Gold and America's New Crisis Economy

Lear Capital | Media | Articles - Stocks, Gold and America's New Crisis Economy | Gold and What Moves it. | Scoop.it

How about those stocks? There's no doubt that if you're in the market right now you've experienced some growth. That's good for your portfolio and good for the dollar. But investing is about cause, effect and timing ... and soaring stocks have opened up opportunities for gold and silver that we have not seen in several years.

 

Perhaps the most compelling aspect of precious metals is that they cannot be printed or manipulated by any government. They cannot be devalued by policy, pumped up by political agenda, or thrust into volatility by social unrest. They are time-proven investments that have been part of wealth building strategies for generations. If you've never found the opportunity to acquire the world's money ... now is a very good one.

 

We know stocks have hit record highs, and gold and silver have dropped in price. But, something else has become very clear ... we are living in a crisis economy. The White House has gone on record stating that "the Debt Crisis is not immediate," but when America's Debt is the largest in the modern world for any one country and our interest payments alone are roughly $1 Billion dollars per day, I am not sure what part of that is not pressing.

 

We started 2013 by barely escaping the tumultuous Fiscal Cliff and in the two months since then we have raised the Debt Ceiling once and enacted Sequestration cuts. In just two weeks from now we must confront the Continuing Resolution and a potential government shut down. Beyond that looms a mine field of monetary mayhem with another Debt Ceiling deadline in May and reaching the inconceivable $17 Trillion dollar US Debt benchmark, which we should hit sometime this ...

Hal's insight:

Click through for the full piece.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Putin brands Cyprus saving levy as ‘unfair’ — RT Business

Putin brands Cyprus saving levy as ‘unfair’ — RT Business | Gold and What Moves it. | Scoop.it

The Russian leadership has lashed out at Cyprus’ plan to tax bank deposits. President Vladimir Putin called the initiative ‘unfair’, while Prime Minister Dmitry Medvedev drew comparisons with illegal forfeit.

 

If Cypriot authorities go ahead with the tax plan and levy every deposit placed in the country’s banks, it would be “unfair, unprofessional and dangerous,” Putin said, according to presidential spokesperson Dmitry Peskov.

 

The assessment was voiced during a special meeting with senior economic aides and officials on Monday, in which the situation in the eurozone and the Cyprus banking crisis were discussed.

 

The Russian Prime Minister Dmitry Medvedev was even harsher in his comments. “This looks like a forfeiture of other people’s money,” he told the RIA news agency, calling the decision strange and controversial.  ...

Hal's insight:

We are in a currency war, folks.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Experts survey sees gold moving up next week | MINING.com

Experts survey sees gold moving up next week | MINING.com | Gold and What Moves it. | Scoop.it

by Anthony Halley:

 

For the first time in weeks, a majority of participants in the Kitco News Gold Survey predicted higher gold prices and many believe that gold is building a base in the $1,570 range.

 

25 gold dealers, investment banks, futures traders, money managers and technical-chart analysts took this week's survey on Friday and of those, 17 see prices going up.

 

A major reason for the expected rise is the latest US consumer price index data, which indicate inflationary pressures going forward. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

The Slippery Grip of Growth - Guest Post by Hawkeye - Golem XIV - Thoughts

... But, what if this mainstream model of economic growth has an even bigger flaw in it, beyond the careless oversight of money, banks and debt? What if all standard economic growth models have no better grounding in reality than attributing progress to something like magic fairy dust and the power of mind over matter? What if they are nothing more than a set of arbitrary and flawed mathematical equations that can only exist on paper rather than the real world? What if they are actually ignoring and contradicting known laws of physics?

 

Well, it is no exaggeration to say that the standard Solow-Swann growth model (and its close relatives) is in fact a complete work of fiction. Statistical fiction. And to demonstrate this I will call in witnesses including the perpetually popular TV physicist Brian Cox, an obscure Nobel chemist from the early twentieth century, and the recent bemusement over the UK’s productivity decline. Together, they can all shed light on the West’s floundering growth situation. ...

Hal's insight:

Click over for the full post.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Eric De Groot: Cyprus Bank Tax Plays With Dynamite & Glue

Eric De Groot: Cyprus Bank Tax Plays With Dynamite & Glue | Gold and What Moves it. | Scoop.it

While public opinion often provides good entertainment, it has no place in investment discipline.  The only "opinion" that matters is the the message from the markets.

A bank tax, if enacted, will generate consequences well beyond Cyprus. Cyprus, EU and IMF officials won't be able to "put the confiscation Genie back in the bottle" ...

Hal's insight:

Click over for the Eric's chart and the rest of his post.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Lear Capital: Which is Easier To Confiscate – Cyber Money, Paper Money or Gold?

Lear Capital: Which is Easier To Confiscate – Cyber Money, Paper Money or Gold? | Gold and What Moves it. | Scoop.it

by David Engstrom:


Today, the Island Country of Cyprus is making headlines, albeit small and few.  In the words of Rush Limbaugh, “I guarantee you that if a Republican were in the White House, the media would be talking to you about one thing today, and one thing only, and it is what happened Saturday in Cyprus and what might happen in Italy.”

 

Instead, the whole ordeal will likely be soon forgotten.  The notion that your money could be seized by government is just too far-fetched to believe even when it does happen.  It’s like the old adage, when your neighbor’s money gets plucked from his bank account without notice, it’s said to be part of a bailout plan. But, when your bank closes its doors, freezes your accounts and takes your money – that’s confiscation and theft.

 

It’s ingenious isn’t it?  Lock the doors on Friday and on Saturday announce to all your customers that government needs to take 6% to 10% of your money because they are broke.  And then you click a few times here, punch in some new numbers there… and DONE!

 

I mean it’s only 6% to 10% of your money, so what’s to worry?  In America, the financial hurricane made landfall on September 15, 2008 with the announcement that Lehman Brothers was bankrupt. Almost overnight, $7 trillion of home and market equity was gone.  Here’s the catch though.  6% to 10% isn’t enough to bailout Cyprus and another 6% to 10% of your money isn’t enough to bail us out either. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Safe haven demand for Gold seen amid fresh Cyprus chaos

Safe haven demand for Gold seen amid fresh Cyprus chaos | Gold and What Moves it. | Scoop.it
Ahead of the US Federal Reserve's 2-day policy meeting, 10-year Treasury yields edged down to 1.94% per year.

 

by Adrian Ash:

 

London Gold Market Report

The gold price continued to hold above $1600 per ounce in Asian and early London trade on Tuesday, easing back from Monday's 3-week high as world stock markets struggled again amid fresh uncertainty and rumor over Euro-member Cyprus' banking crisis.

Silver below $29 per ounce held flat alongside other commodities, while major-government bond prices rose.

Ahead of the US Federal Reserve's 2-day policy meeting, 10-year Treasury yields edged down to 1.94% per year.

Consumer price inflation was reported at 2.0% on Friday.

"[The Eurozone's] long-running problems...are not going to be resolved quickly," said New Zealand's finance minister Bill English in an interview this morning.

"I think over the next five to seven years, you're going to see these occasional outbreaks of [Eurozone] anxiety in quite unexpected ways." ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Money-Pumping Update | Steve Saville | Safehaven.com

Money-Pumping Update | Steve Saville | Safehaven.com | Gold and What Moves it. | Scoop.it
by Steve Saville:...The money pumping temporarily creates the illusion of a real recoveryCreating money out of nothing and pumping it into the economy can't possibly help the overall economy. Some individuals will be helped at the expense of others, but the net effect over the long term will be a weaker overall economy. This is because the monetary inflation distorts the price signals upon which producers and investors rely. The only question relates to exactly how prices will be distorted. Which prices will rise the most and when will these price rises occur?

 

The answer to the above question is never known in advance of the money-pumping, even by those doing the pumping. However, educated guesses can be made. When the economy has been greatly weakened due to the effects of earlier monetary-inflation-caused price distortions (mal-investments), gold will almost certainly be a major long-term 'beneficiary' of the money-pumping. That's unless gold has already become so expensive that it has fully discounted the future economic problems. In such circumstances gold will also often be a major short-term beneficiary, although that certainly hasn't been the case over the past six months. Over the past six months the stock market has been the biggest beneficiary of the monetary inflation. This has surprised us more than it really should have. ...

Hal's insight:

"Illusion of recovery" is a great choice of words.

more...
No comment yet.
Scooped by Hal
Scoop.it!

The Golden Truth: Will The Cyprus Bailout Trigger The Next Financial Crisis?

The Golden Truth: Will The Cyprus Bailout Trigger The Next Financial Crisis? | Gold and What Moves it. | Scoop.it

Dave in Denver writes:

 

In an a deal that needs to still be approved by the Cypriot Parliament, an international banking consortium led by the IMF agreed to bailout of Cyprus.  Part of the deal includes the imposition of a levy on bank on bank savings accounts:  10% on bank balances in excess of 100,000 euros ($131,000) and 6.75% on balances below 100,000 euros.  Cypriots lined up at ATM machines over the weekend - they can withdraw cash until the ATMs run out of cash up to the amount that has already been set aside for the levy.

This story has received close to no coverage in the U.S. despite the potential implications for people who keep their money in banks in every country.  As a result of this situation in Cyprus, there's now fear that depositors all over southern Europe will take their money out of banks out of fear of this type of deal becoming a model for the next round of sovereign bailouts in general.  ...

Hal's insight:

Click through for the rest of his post.

more...
No comment yet.
Scooped by Hal
Scoop.it!

oftwominds-Charles Hugh Smith: The Deeper Meanings of Cyprus

oftwominds-Charles Hugh Smith: The Deeper Meanings of Cyprus | Gold and What Moves it. | Scoop.it

The deposit-confiscation "bailout" of Cyprus reveals much about the Eurozone's fundamental neocolonial, neofeudal structure.


At long last, Europe's flimsy facades of State sovereignty, democracy and free-market capitalism have collapsed, and we see the real machinery laid bare: the Eurozone's political-financial Aristocracy will stripmine every nation's citizenry to preserve their power and protect the banks and bondholders from absorbing losses. The deposit-confiscation "bailout" of Cyprus confirms the Eurozone's fundamental neocolonial, neofeudal structure and the region's political surrender to financialization. The E.U., Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012) Let's list what Cyprus reveals about the true state of financial-political power in Europe:1. The Core-Periphery terminology masks the real structure: the E.U. operates on a neocolonial model. In the old Colonialism 1.0 model, the colonizing power conquered or co-opted the Power Elites of the periphery regions, and proceeded to exploit the new colonies' resources and labor to enrich the Imperial core. ...
Hal's insight:

Click through for the rest

more...
No comment yet.
Scooped by Hal
Scoop.it!

Jesse's Café Américain: Cyprus Update - The Calm Before the Storm - One Europe?

Jesse's Café Américain: Cyprus Update - The Calm Before the Storm - One Europe? | Gold and What Moves it. | Scoop.it

I am sure you are aware of the events unfolding in Cyprus, at least if you follow the financial news and the internet.

The vote in the Cyprus Parliament has been postponed until Tuesday, most likely because the votes were not there to pass a resolution that was acceptable to the EU.

The bank holiday has been extended for two more days until at least Wednesday, and it is doubtful they will reopen until the Parliament has sorted out a plan of action.

As you may recall, the President of Cyprus, Nicos Anastasiades, a member of the conservative Democratic Rally (DISY) party, was elected in February of this year with about 58% of the vote. He is known as a blunt, chain-smoking 'strong man' with strong ties to the right wing politicians of Europe. Indeed, these connections and his promise of a solution favorable to Cyprus were strong factors in his recent electoral victory.

The extenuanting factors here are that Cyprus is viewed as a bellwether for Italy and Spain. There are many who would dispute this, and point to the particularities of the size and structure of the Cyprus banking sector. But there is a widespread perception that the heavy hand of Germany is running ...

Hal's insight:

You'll need to click through for the rest.

more...
No comment yet.
Scooped by Hal
Scoop.it!

The Coming Crisis in Japan - Kyle Bass Gleacher 621

Kyle Bass, founder and principal of Hayman Capital Management, LP, will describe why he sees a looming economic crisis for Japan..

Hal's insight:

You'll need to click over for the video. hat tip to http://trimtabs.com 

more...
No comment yet.
Scooped by Hal
Scoop.it!

Eric De Groot: Gold Is Ready

Eric De Groot: Gold Is Ready | Gold and What Moves it. | Scoop.it

As Jim suggests in his commentary "One Of The Most Important Events In History & Gold" 

“What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’ Russian ‘black money’ is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Who’s money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.” 

Could this be the trigger event that finally releases the potential energy stored deep within in the paper gold market?  Clearly Jim thinks so.  I would also suggest that gold has and would always be primed for the unexpected well ahead of any headline 'trigger' event that alters consensus expectations. ...

Hal's insight:

Click over for his chart.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Cyprus Gold...and Silver, too

Cyprus Gold...and Silver, too | Gold and What Moves it. | Scoop.it

TF Metals writes:

 

... This is a big deal, regardless of how Cramer and CNBS attempt to downplay it. Why? Fractional reserve banking. As depositors across Europe realize that they are potentially next in line for a similar (or worse) "haircut" if their bank fails, the realization will dawn upon them that keeping money in said bank, at 0% interest no less, is not a very good idea. As depositors begin to withdraw their cash, the entire fractional reserve system begins to seize up. ...

Hal's insight:

Click through for the rest and the charts.

more...
No comment yet.
Scooped by Hal
Scoop.it!

The ATM use was a "run on the system" « Jim Sinclair's Mineset

The ATM use was a "run on the system" « Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it

Jim Sinclair’s Commentary [on Cyprus]


The funds withdrawn in Cyprus by depositors via the use of ATM machines this weekend already had 10% deducted from the cash balance in the account by the banks.

 

The ATM use was a "run on the system" and not a trick to avoid the 10% confiscation.

 

Could, and would are two different things. Maybe a call from Russia has had an impact on Cyprus’ leadership.

 

Revenge can be a bitch when it is Russian style. LaGarde has made the mistake of her career. Central banks everywhere have put $4 trillion into the system to save it from the effects of the OTC derivative meltdown and the flushing of Lehman. $10 billion is about to blow that all up.

 

The greatest conspiracy in history may well end up being stupidity and hubris. It might be Europe’s consideration of Russian money as too Russian to care about.

 

The Fed will be swapping the hell out of the dollar from 11pm tonight forward.

more...
No comment yet.