Gold and What Mov...
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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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Goldbggr: Investing Legend Quits the Markets as it Continues to Destroy Itself

Goldbggr: Investing Legend Quits the Markets as it Continues to Destroy Itself | Gold and What Moves it. |

from @goldbggr:


"Nasty day today!


"Clearly, the powers-that-be are losing it. Legends are leaving not just electing to stand on the sidelines.


"How soon will 'they' let gold run? Are they ready yet? It looks to me that we do not have long to wait.


"Funny money is getting a 'black-humor' quality while gold remains cheap in the face of growing cracks in the monetary systems machines.




"First article:



"Markets are toast as Louis Bacon plans to give ..."

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Gold and QE3: World's largest money manager sees 'cult of inflation' lasting a 'few years even decades' |

Gold and QE3: World's largest money manager sees 'cult of inflation' lasting a 'few years even decades' | | Gold and What Moves it. |

by Frik Els:


"The latest investment outlook from world number one money manager Bill Gross who heads up and founded Pimco with assets that total more than $1 trillion have some stark messages for investors.


"In the August newsletter – titled 'Cult Figures' – Gross writes "unfair though it may be, an investor should continue to expect an attempted inflationary solution in almost all developed economies over the next few years and even decades":


"The problem with all of that of course is that inflation doesn’t create real wealth and it doesn’t fairly distribute its pain and benefits to labor/government/or corporate interests.


"Financial repression, QEs of all sorts and sizes, and even negative nominal interest rates now experienced in Switzerland and five other Euroland countries may dominate the timescape.


"The cult of equity may be dying, but the cult of inflation may only have just begun. ..."

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Hawkish!(NO CHANGE: FED DOES NOTHING, STOCKS INSTANTLY FALLING via @businessinsider #in...)...


The one thing people were expecting from the Fed was an extension in the promise to keep rates low.
The Fed didn't do that and stocks are instantly falling.


Read more:

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U.S. Treasury Plans Floating-Rate Notes in Year or More | Gold Anti-Trust Action Committee

U.S. Treasury Plans Floating-Rate Notes in Year or More | Gold Anti-Trust Action Committee | Gold and What Moves it. |

posted on GATA:


By Meera Louis and Cheyenne Hopkins
Bloomberg News


Here's a snippet


"... Treasury plans to develop a floating-rate note program to complement the existing suite of securities issued and to support our broader debt-management objectives," the department said. It said the first auction "is estimated to be at least one year away."


"Still, floating-rate notes pose risks for the Treasury, according to Campbell Harvey, a finance professor at Duke University's Fuqua School of Business in Durham, North Carolina. If interest rates rise from historic lows, the Treasury will need to pay investors more to borrow, he said in an April interview.


"The yield on benchmark 10-year Treasury note rose to 1.51 percent at 11:55 a.m. New York time from 1.47 percent late yesterday. Ten-year U.S. yields fell to a record 1.379 percent on July 25.


"The Treasury also said it is "in the process of building the operational capabilities to allow for negative-rate bidding in Treasury bill auctions, should we make the determination to allow such bidding in the future."

Investors who bid at auctions for Treasury bills at negative yields would pay more than face value for the securities, ensuring that if they hold the debt to maturity they will get back less than they paid.


"The Treasury also said that the U.S. debt limit is likely to be reached at the end of this year, and it expects to use "extraordinary measures" to fund the government into early 2013. ..."

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Opinion: It is better to believe in gold than politicians David Levenstein

Opinion: It is better to believe in gold than politicians David Levenstein | Gold and What Moves it. |

David Levenstein writes:


"... If the ECB does "whatever it takes" one thing you can bet on, is that the ECB will be forced to print more money. And, while we can expect to see the ECB take this course of action in the future, worse-than-expected economic data from the US together with poor data from Europe and China has many traders believing that monetary stimulus is coming, not only in Europe and China, but also in the US.

"Thanks to the mismanagement of our political elite, countries have become insolvent. And, as our global financial policy makers continue to attempt to solve the current debt crisis with more debt and promises to pay, things are going to spiral out of control. Ludwig von Mises once said.


"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." -- Ludwig Von Mises


"But, what amazes me more than anything is the amount of lying and cheating going on in our corrupt financial system. ..."

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Fed Meeting Decision Day: Predictions Mixed

Fed Meeting Decision Day: Predictions Mixed | Gold and What Moves it. |
The "Squawk Box" team breaks down second quarter numbers of parent company, Comcast. Also, debating whether the Fed's policy of financial intervention is working, with Stephen Roach, Yale University senior fellow.


This video is absolutely a must view video. Larry Meyer looses it when Stephen Roach challenges him. My mouth fell open when Larry basically said that real world didn't matter in face of their theories (counter-factuals). He tells Roach that looking at what is going on in the economy is "Just terrible." That looking at the assumptions is what one has to do. Aroud the 6 minute mark. But watch the whole thing.

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Go for the Gold! (Pay the IRS.)

Go for the Gold! (Pay the IRS.) | Gold and What Moves it. |

by Jonathan V. Last:


"Because conservatives are scrooges, the good folks at Americans for Tax Reform have gone through the fine print to find out what our Olympians will have to cough up to the IRS should they be lucky enough to win any medals in London.


"Even by the standards of our government, the numbers are insane.

For instance: Americans who win bronze will pay a $2 tax on the medal itself. But the bronze comes with a modest prize—$10,000 as an honorarium for devoting your entire life to being the third best athlete on the planet in your chosen discipline. And the IRS will take $3,500 of that, thank you very much.


"Silver medalists will owe $5,385. You win a gold? Timothy Geithner will be standing there with his hand out for $8,986. ..."


hat tip to

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World's gold deposits are drying up |

World's gold deposits are drying up | | Gold and What Moves it. |

by Michael Allan McCrae:


"Natural Resources Holdings produced a terrific report—which lists the world's top 50 producing mine and undeveloped deposits—that warns there is a paucity of exploitable gold in the coming years.


"In our view a mine or deposit is an asset no different than a farm, commercial property, or financial security. Yet when it comes to gold, there are only 439 assets that meet the industry perceived economic threshold of 1 million ounces," writes the authors.


"Of the 439 mines or deposits over 1 million ounces, only 189 are in production and has an owner with over $1.8 billion market capitalization. The remainder are owned by juniors, private companies or government sponsored enterprises. ..."


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11 Signs That Time Is Quickly Running Out For The Global Financial System

11 Signs That Time Is Quickly Running Out For The Global Financial System | Gold and What Moves it. |
Are we rapidly approaching a moment of reckoning for the global financial system?


"#1 A number of very important events regarding the financial future of Europe are going to happen in the month of September. The following is from a recent Reuters article that detailed many of the key things that are currently slated to occur during that month....


"In that month a German court makes a ruling that could neuter the new euro zone rescue fund, the anti-bailout Dutch vote in elections just as Greece tries to renegotiate its financial lifeline, and decisions need to be made on whether taxpayers suffer huge losses on state loans to Athens.


"On top of that, the euro zone has to figure out how to help its next wobbling dominoes, Spain and Italy - or what do if one or both were to topple.


"#2 Reuters is reporting that Spanish Economy Minister Luis de Guindos has suggested that Spain may need a 300 billion euro bailout.


"#3 Spain continues to slide deeper into recession. The Spanish economy contracted 0.4 percent during the second quarter of 2012 after contracting 0.3 percent during the first quarter. ..."


click through for the rest

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oftwominds-Charles Hugh Smith: The Central Banking Theater of the Absurd

oftwominds-Charles Hugh Smith: The Central Banking Theater of the Absurd | Gold and What Moves it. |

by Charles Hugh Smith:


"The astounding hubris of central bankers is comical, but the consequences of their actions are playing out as needless tragedy.


"Central bankers present themselves as Masters of the Universe. They are, but only in their own little Theater of the Absurd. In the real world, they are as clueless as any other mortals about the unintended consequences of their actions and the speed with which the corrupted, unsustainable financial Status Quo will decay and die.


"The only attribute they possess in abundance is hubris. Their claims to godhood are comical when viewed in their little Theater of the Absurd, but they become tragic when the consequences of their actions play out in the real world.


"Their job, such as it is, is to deflate a tottering system based on phantom assets slowly enough that it doesn't implode. Stripped of mumbo-jumbo, their strategy to accomplish this is to inflate other phantom assets to replace the phantom assets that are falling to zero. ..." [click through for the rest]

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Gold at ECB: Accident or Strategy? | Axel Merk |

Gold at ECB: Accident or Strategy? | Axel Merk | | Gold and What Moves it. |

by Axel Merk:


"When the euro was launched, the European Central Bank (ECB) held approximately 15% of its assets in gold. That ratio has remained reasonably stable, giving rise to a variety of chatter, including suggestions that it may displace the U.S. dollar. We pursue the question on whether the ECB's gold holdings are an accident or strategy...


"... From what we see, central banks have been scared into holding gold since the onset of the financial crisis. Beyond that, we don't see an active strategy at the ECB to keep its gold reserves at 15% of total assets. Instead, the ECB's comparatively measured approach has simply lead to a reasonably stable percentage of gold reserves. Of course that was before ECB President Draghi said on July 26, 2012, that he shall do "whatever it takes to preserve the euro." (an interpretation of that may be that more money printing is on the way). For now, the cultural differences in responding to the financial crisis (Europe: think austerity; US: think growth) suggest that the euro should outperform the U.S. dollar over the long term, assuming the not-so-negligible scenario of a more severe fallout from the Eurozone debt crisis won't materialize. ..."


 [click through for the full article and interesting charts]



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Most Important Silver COT Chart for 2012 - Got Gold Report

Most Important Silver COT Chart for 2012 - Got Gold Report | Gold and What Moves it. |

"Mr. Arensberg wanted me to share with you-all the chart below, which he says is the “most important chart for the CFTC commitments of traders (COT) data for silver so far in 2012.” Gene already commented on the very bullish positioning in the Vulture subscriber charts over the weekend, but he wanted a visual representation of it available.


"The chart is of the short positions by the traders the CFTC classes as “Managed Money,” including hedge funds, Commodity Trading Advisors (CTAs) and other funds that trade futures for clients. They are normally on the long side for silver futures, but over the past couple months they have been adding more and more short positions up to a new record high for the entire disaggregated COT report data going back to 2006. ..."

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Finance to Lose 200,000 More Jobs, Says Respected Bank Analyst

Finance to Lose 200,000 More Jobs, Says Respected Bank Analyst | Gold and What Moves it. |

by Eleazar David Melendez:


"A bank equity analyst famous in financial circles for her prescient analysis on the global banking sector said Tuesday morning she sees the financial industry shedding another 200,000 people off the payrolls in the coming months.


"Meredith Whitney, chief executive of namesake Meredith Whitney Advisory Group, said in a Bloomberg interview with economist Tom Keene that "the old way of making money for Wall Street ... is gone," later adding, "the business models just have to shrink."


"Whitney, who became notable in 2007, when she wrote a highly critical, contrary analysis of Citigroup Inc. (NYSE:C) that turned out to be highly accurate, noted that company was still a laggard in cost-cutting initiatives. She emphasized such budget-slashing actions were the only way for big banks to proceed since in "the basic structural capital markets business, there's just not a lot of business."


"After hearing a video clip from banking analyst Richard Bove of Rochdale Securities, who said banks would have to shed "100,000 to 150,000 people" dedicated to mortgage processing, Whitney said she anticipated further cuts of 50,000 in other business areas.


"The big banks are effectively on their backs. Shareholders are voting with their feet and saying, 'Get profitable or sooner we're not going to buy your stock'," Meredith said, adding, "I would argue that the banks haven't overfired and are middle of the way through firing." ..."

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Gold exports to Iran shrink Turkey trade deficit | The Victory Report - Precious Metals Media and More

Gold exports to Iran shrink Turkey trade deficit | The Victory Report - Precious Metals Media and More | Gold and What Moves it. |

"ANKARA(BullionStreet): Excessive gold exports to Iran and slowdown in the economy were the main reasons behind Turkey’s trade deficit drop in June, according to Turkish Statistics Institute.


"Turkey’s trade deficit fell to $7.18 billion in June from $10.26 billion a year earlier.


"Turkey’s gold exports to Iran hit $1.3 billion in June, bringing the total gold exports so far in 2012 to $4.4 billion.


"The Turkish Statistics Institute said there were no findings suggesting gold exports to Iran were used as a tool for oil and gas payments, rejecting media speculation to that effect.


"Most of the gold export payments were made in cash, it said.


"Turkey, which imported around 200,000 barrels a day of Iranian crude in 2011, sharply reduced shipments earlier this year to win a waiver from U.S. sanctions that allows it to continue purchasing Iranian crude through the second half of 2012. Turkey also imports gas from Iran.


"Previously, gold sector officials said Iranians were turning to gold for savings and possibly trade as Western sanctions tighten to force Iran to curb its nuclear program. ..."


but I'm confused. i thought gold wasn't money according to Ben Bernanke?

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In Gold, Silver, Diamonds, & Stock Markets, Controlling Perception is the Banker Weapon Du Jour

When it comes to building wealth, muddying the difference between perception and reality is the key manipulation tool that banksters use to goad people into wrong choices. For example, when European Central Bank (ECB) President Mario Draghi vowed to save the Euro from collapse last week, and people all over the world foolishly believed him, all the European stock markets along with US stock markets rallied quit significantly for a few days on this proclamation. Even though there is nothing Draghi can do to prevent the reality of the Euro’s continued painful demise, Draghi’s prominence allows him to temporarily alter the public’s perception of reality and thus, cause a stunning, albeit a very-likely short-lived stock market rally. Likewise, the Western banking cartel that knows soaring gold and silver prices will usher in a quicker funeral for the Euro and the USD also tried valiantly and quite successfully to create the perception, for the greater part of this summer, that gold was going to collapse to the $1,200 level and that silver was going to collapse to the $20 level or lower by creating massive volatility in their bogus gold and silver paper futures markets, though this perception greatly differed from the reality of tightening global physical gold supplies (available for investment purposes) and increasing global physical demand (for investment purposes). Banksters have always resorted to manipulating perception regarding capital markets versus actually changing the reality of capital markets to successfully defraud the people, as changing perception is exponentially an easier task than changing reality.


In some cases, reality is impossible for them to change, so in order to defraud people, they must change perception. Take the diamond market for example. Today, millions of love-struck men all over the world still pay exorbitantly artificially high prices for diamonds, 140 years after massive discoveries of tonnes of diamonds in the South Orange river in South Africa re-classified diamonds from a precious gem into a semi-precious gem. When bankers were faced with the problematic reality of massive supplies of diamonds that would tank the diamond price and end these scheme of profitability to them, they merely changed the perception of diamond supply, as it was impossible to change the reality unless they were to take already discovered tonnes of diamonds, and rebury them somewhere with the hope no one would ever find them. To address this over supply problem, bankers formed a syndicate, the Diamond Trading Company, that would from that point forward, carefully control supply of diamonds throughout the world. In doing so, they “buried” the over supply of diamonds deep within their secretive vaults, and promptly turned the reality of a global oversupply of diamonds into a global perception of a diamond shortage that still exists today, 140 years later! Out of solving the diamond conundrum, bankers learned the mastery of controlling public perception. Successfully change public perception and the need to alter reality disappears. It’s the oldest trick in the book but one that banksters successfully used for the duration of nearly this entire summer to prevent the masses from buying physical gold and physical silver even as these prices languished at huge sale prices for months on end.


Below, to explain the bankster con game of perception v. reality to you, I present to you an excerpt from my just released book, The Golden Gift, available at this link. If for some reason, this link does not work, please just visit and search for The Golden Gift. For those of you that may have been among the 5,000 people that downloaded version of the Golden Gift that I made available for free on my website a couple of years ago, please note that the old version was a very short, 30-page reader. The one I have just released is a greatly expanded 173-page book, so even though they have the same title, they are not the same book by any means. Furthermore, please note that I will be donating 100% of all profits from first-year sales of The Golden Gift to three wonderful organizations that help child orphans and children with learning disabilities, Two Sisters, founded by the wonderful Patrick Chamusso (, the Mulligan Project (, and Future Light Kids, founded by the wonderful Jennifer Lo (


An excerpt from Chapter Two, The Golden Gift:


In the movie The Prestige, Michael Caine’s character, Christopher Priest, states:


“Every great magic trick consists of three parts or acts. The first part is called the Pledge. The magician shows you something ordinary: a deck of cards, a bird or a man. He shows you this object. Perhaps he asks you to inspect it to see if it is indeed real, unaltered, normal. But of course…it probably isn’t. The second act is called the Turn. The magician takes the ordinary something and makes it do something extraordinary. Now you’re looking for the secret…but you won’t find it, because of course you’re not really looking. You don’t really want to know. You want to be fooled. But you wouldn’t clap yet. Because making something disappear isn’t enough; you have to bring it back. That’s why every magic trick has a third act, the hardest part, the part we call the Prestige.”


Just like every great magician, the global banking cartel has fooled the people about monetary truth for centuries now. “The Pledge” happens when bankers show people a piece of cotton fiat currency such as the USD and tell you that it is “real” money and an asset. Of course, since it is a tangible piece of cloth, this seems like a rational, logical statement but it is not. Bankers introduce all USDs into the world as debt and ONLY a very tiny percentage of all money in circulation exists in the form of paper. Bankers actually create the majority of what we think of as tangible “money” in the form of intangible fictitious digital credits and debits.


It’s almost humorous today when people speak of the fact that one day all money will be digital because, though estimates vary due to the secrecy of Central Banks’ creation of new fiat currencies during this crisis, it is believed that 98% of the “money” used for all global financial transactions on a daily basis is already digital. Thus, for all intents and purposes, money is already digital. Though your bank account may show that you possess USD $250,000 on your paper statement or on the ATM screen, in reality, your bank only has perhaps 2%, or even less, of this $250,000 in cash in their vaults. If you went to the bank tomorrow and tried to withdraw this as cash unannounced, the bank would very likely be unable to provide you with this money for it would then have to ask its Central Bank to turn your digital money into printed money before handing it over to you. For those that might misinterpret this statement let me explain it to you further. This does not mean that a branch of Bank of America or Citigroup does not have $250,000 of cash in their vaults. Of course they do. What I am saying is that if you took the aggregate amount of ALL deposits from ALL clients at any given branch of any global bank today, they will likely barely have 2% of that aggregate amount in their bank vaults at that given branch, if at all.


The second phase of any good illusion is “the Turn”, when magicians make something that was once visible disappear. Bankers execute “the Turn” even better than illusionists because they make the people’s money disappear through three separate and distinct channels. Bankers take away the money that people earn through their incomes through (1) the silent mechanism of inflation; (2) a second overt mechanism of the income tax; and (3) initiating capital market crashes. Since most people have no idea that income taxes are a direct transfer of wealth from all citizens in a country to the private banking oligarchs that rule their country, they do not realize that the application of income taxes is a mechanism of theft. Yes, many people are shocked when they learn that income taxes are a direct transfer of wealth and theft by bankers from citizens to themselves, but this is an indisputable fact. If you wish to read the evidence that discloses that nearly 100% of your income taxes go directly into the coffers of the private bankers that run your country, please refer to the findings disclosed by Peter Grace in the Grace Report (Source: J. Peter Grace, The Grace Commission Report for US President Ronald Reagan, January 15, 1984,


Bankers execute the third leg of “the Turn” by directly manipulating stock markets and real estate markets to deliberately create stock market and real estate market booms and collapses. When they cause trillions of equity to disappear and when they deliberately collapse stock markets and real estate markets, they know that people will invariably start digging and try to discover the mechanisms by which they “disappeared” their money. But all good illusionists will take extreme measures to protect all three phases of their illusion and bankers are no different. Though bankers are always appearing on TV and stating that “ordinary” people cannot understand the “complexity” of the financial system, this too, is just propaganda disseminated to ensure the success of “the Turn”. The motivation of bankers for always promoting propaganda like “financial derivatives are so complex that even Harvard PhDs have difficulty understanding them” is simple. Bankers know that if they can convince us that the financial system is much too “complex” for us to understand, that we will never start digging for the truth, and thus, never understand “the Turn”, the second part of their illusion when they make our money disappear. However, the bankers’ argument of “complexity” is pure unadulterated rubbish, just as is every other facet of their banking and monetary system.


I can explain the mechanism by which bankers deliberately create artificial “booms” and “busts” in very simple terms in a couple of paragraphs. When bankers want to create booms, they artificially depress interest rates below interest rate levels that would exist in a free market absent of their persistent meddling. Low interest rates are the proverbial carrot on the stick that banksters use to goad the people into taking out huge loans that they cannot afford. Unfortunately, many of us always pursue the dangling carrot because we unfortunately suffer from a false-sense of confidence that we can game the system to easily earn a much higher rate of return than the interest rate we must pay back to the banksters. However, what most of us don’t realize is that the banksters, not us, are in control of this situation as they can call in our loans at any time when they decide it’s time to financially ruin us. During the “goading phase”, our excessive borrowing effectively floods capital markets with money that “should not exist” and “would not exist” in a free market and causes a flood of money to chase a limited amount of assets. If, for example, we choose to use this “excess” money to buy real estate, then the price of real estate soars. Banksters sell this as a “boom” in the media to goad even more of us that can’t afford loans to borrow more money. In reality, the deliberately-created “boom” is merely a massive upward and bankster-created “distortion” and “illusion” of rising prices that cannot last.


This false sense of confidence originates from a state of euphoria that banksters artificially create through distribution of massive propaganda in the mass media about endless times of economic prosperity. Compounding this sense of euphoria during times of “booms” is the fact that all agents of the State participate in this scam. For example, let us examine the very public proclamations of the most prominent and revered economists, bankers and politicians immediately prior to the US stock market crash of October 29, 1929 that ushered in a global Great Depression that lasted for more than a decade.


“We will not have any more crashes in our time.” – John Maynard Keynes, 1927.


“There may be a recession in stock prices, but not anything in the nature of a crash.” – Irving Fisher, leading U.S. economist, New York Times, September 5, 1929.


“There is no cause to worry. The high tide of prosperity will continue.” – Andrew W. Mellon, US Secretary of the Treasury. September 1929.


With ringing endorsements from the most prominent people in the country every year immediately prior to crashes, no wonder so many people every year are goaded into allowing banksters to wipe out all of their capital. And if you think the above was a one time, non-recurring event, merely Google the statements of the US President, US Federal Chairman Ben Bernanke and the most prominent Fortune 500 and Banking leaders in 2006 and 2007, and you will discover that the exact same pattern of propaganda immediately preceded the US housing crash in 2008. In fact, this propaganda pattern is not limited to just these two historical crashes, but they happen everywhere around the world before every single major economic crash. When patterns repeat themselves repeatedly throughout history, if we cannot learn that there is a concerted effort of the State to deliberately scam us, then we deserve the losses that are inflicted upon us when we place undeserved trust in leaders that wish nothing more than to defraud us and lead us into actions of financial ruin. After learning about this pattern of propaganda, either we must accept that people we have been taught to trust only wish to scam us, or somehow it is a huge coincidence, that all over the world, during dozens of economic crises, we the people, have elected the dumbest politicians possible in our country to a position of power, and they in turn, have made the mistake of appointing the dumbest people in the entire country to the most prominent positions in government and banking. In 1930, even after the US stock market crash had already occurred, there was still no shortage of continuing and relentless propaganda from the government-bankster-corporate machine.


“[1930 will be] a splendid employment year.” – U.S. Department of Labor, New Year’s Forecast, December 1929.


“I am convinced that through these measures, we have reestablished confidence.” – Herbert Hoover, US President, December 1929.


“While the crash only took place six months ago, I am convinced we have now passed through the worst – and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.”- Herbert Hoover, US President, May 1, 1930.


What we all need to learn from history is that when the banksters decide it’s time to pop the bubble and then want to earn money from a real estate market “bust” or “crash”, as we have since discovered was the exact case with many Wall Street banks in 2008, then there is no stopping them. If and when Central Banks merely decide to raise interest rates and call in loans during times of massively distorted market prices (note that politicians’ descriptions of “economic prosperity” is always a lie), they can easily create market panics and crashes. Raising interest rates significantly in a capital market causes all “excess” money to leave capital markets and the prices in that market to then crash. For example in the US, mortgage bankers ensured interest rates on mortgages would rise and cause hardship on people by selling them ARMs (Adustable Rate Mortgages) during the early 2000s that re-set at much higher interest rates in future years. Mortgage bankers were able to convince people that they would be able to sell their houses for large profits in the rising real estate market environment (at the time) before the ARMs would ever re-set at higher interest rates.


Of course, when the real estate market peaked after the bankers had sold millions of ARMs but before the ARMs owners were able to flip their property at huge profits as promised by the banksters, massive numbers of home owners were consequently forced to pay the much more punitive interest rates on their mortgages. In effect, this served the same purpose as banksters calling in their loans. In addition, banksters went wild in the early 2000s selling poor people sub-prime mortgages that they knew the poor would never be able to afford. For example, 90% of sub-prime mortgages that bankers sold to the poor in 2006 were ARMs (Source: Zandi, Mark (2009) Financial Shock. FT Press). So though I am simplifying the description of the process here, I am doing so to demystify the belief in the “complexity” of financial transactions that banksters wish to perpetuate. To create a boom, or more accurately, highly-distorted, non free-market prices, banksters merely lower interest rates and coax people into excessive borrowing scenarios. To create a bust, or more accurately, a collapse in highly-distorted market prices back to price levels that would exist without banker interference, bankers merely raise interest rates and call in their loans. It’s that simple. And the only one making loads of profits from both booms and busts are the banksters. There is also a secondary mechanism whereby banksters can create “busts” in the absence of a rising interest rate environment. In this secondary mechanism, a bust can happen simply due to the over-leverage in capital markets. I’ll explain how this mechanism works later in this book.


Finally, we arrive at the third act of the illusion, “the Prestige”. The Prestige is the mind-blowing finale that stumps people and leaves their jaws agape. As I stated earlier, whenever a crisis strikes, people have a psychological need to understand the reasons that precipitated a crisis. Since bankers are master manipulators and illusionists, no illusionist ever wants the mechanisms behind his “Turn” to be discovered. Otherwise, magic ceases being magic and the power of the Prestige will die. So when bankers raise the ire of an entire nation by executing “The Turn” and disappearing our wealth, they must necessarily return our “disappeared” wealth to us by executing their final act of their illusion, “the Prestige”. “The Prestige” is a necessary act in order to keep the order component of the “New World Order” intact. Execution of “the Prestige” is necessary to pacify the masses and to prevent us from realizing that we are but pawns in a massive global financial scam. This is why we often experience a cycle of rising real estate asset valuations immediately follow a stock market crash and a cycle of rising stock market valuations immediately follow a real estate market crash, but rarely ever both at the same time. If you only thought about this fact for a mere minute or so, you would immediately recognize the bankster scam being executed upon us. How can it be that great real-estate market rises often follow stock-market crashes and vice versa? After people have lost great wealth in a stock-market crash is it natural for people to speculate and risk tons of their money in another market right away, or do banksters create the conditions that goad people into investing great sums of their wealth into another capital market right away? Hmmmm, I bet you never pondered this question ever before. If the banksters created simultaneous real estate and stock market booms that crashed at the same time, then they would not leave themselves any room to execute “the Prestige”. And with no “Prestige”, everyone in the world would have already figured out their scam by now.


However, even the execution of “the Prestige” is truly ingenious. Most of us rarely realize that the bankers’ execution of the Turn and the Prestige in their worldwide scam relegates us to the proverbial hamster running on the hamster wheel on the fast track to nowhere. Bankers merely return to us through their artificially manufactured “booms” that follow their artificially manufactured “crashes” greater amounts of nominal money that they have already devalued in real terms, thus crippling our ability to gain the necessary financial resources to engineer our freedom from their perpetual tyranny. In other words, the “recovery” part of the boom/bust cycle that banksters sell us is just an illusion and not a recovery at all. In reality, even as we are “recovering” our losses, our “real returns” are still falling. For example, consider that after the banksters crashed the stock market in 2000, you lost $500,000 of your portfolio. After this crash, you swore off investing in the stock market and were lucky enough to ride the Central Bank artificially created real estate price distortion to a gain of $700,000 by 2008 and exited right before the real estate market crash. Well, for most of us, we would feel very good about that. After all, we recouped our entire loss of $500,000 and then made an additional $200,000 of profit, right? Yes, but in nominal terms only. \


To correctly assess your financial situation, you would have to consider the first phase of the banksters’ “Turn”, that of inflation. From 2000 to 2008, the US dollar lost approximately 50% of its purchasing power. Thus, $700,000 2008-year dollars only had the same purchasing power of $350,000 2000-year dollars. But recall that you lost $500,000 2000-year dollars. Thus, to recoup your $500,000 of losses in 2000, you would actually have to make $1,000,000 of 2008-year dollars. But remember, you only made $700,000 2008-year dollars, so even though you ended up with a greater nominal amount of dollars in 2008 than the nominal amount you lost in 2000, you still would have been under-water. The real question is whether or not you would have realized this or not. And that is the beauty of the banksters “Prestige”. They can return money that they stole from us during the “Turn”, make us feel good about it, and actually continued to rob us of real wealth at the same time. This is why I repeatedly state that a complete understanding the fraudulent nature of the global banking system is by far the most important knowledge that you will ever gain in your lifetime. Understand how the game works and you can strip yourself of the many illusions that you have thus far, have falsely accepted as truth. But remain ignorant of the banksters’ illusions, and you will go to your grave wondering why you felt like a hamster running on a wheel even as your “wealth” continued to grow.


About the author: JS Kim is the Founder of SmartKnowledgeU and the author of The Golden Gift. Follow us on Twitter @smartknowledgeu.


Republishing Rights: The above article may be republished on other sites, as long as all text and links remain exactly as is presented above, including the “About the author” acknowledgment. All violations will be prosecuted to the fullest extent of copyright law.

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Bill Murray - Best scenes from the "Groundhog Day" - 4

It always begins at 6 o'clock in the morning. Everyday is exactly the same..just like Bill Murray's facial expression..


In honor of the FED's decision today.

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Yamada - Gold & Silver at Critical Points in This Cycle

Yamada - Gold & Silver at Critical Points in This Cycle | Gold and What Moves it. |

With gold trading near the $1,600 level and silver below $28, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.


Metals: Gold & Silver


By Louise Yamada Technical Research Advisors, LLC ("LYA")


July 5 (King World News) - Gold: Upward Resolution!


Gold spot price succeeded in confounding both the short-term bulls and bears by stubbornly remaining essentially unchanged between 1,539 (support) and 1,641 (resistance) since May 2012. But the coil tightened as the configuration traced out a symmetrical triangle (see Figure 9) which may be resolved with a breakout.


Whether short covering is responsible, looking toward the Fed and possible QE3, or the “whatever it takes” talk, Gold popped ....

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Europe, US & Gold Ahead Of Crucial Fed & ECB Meetings

Europe, US & Gold Ahead Of Crucial Fed & ECB Meetings | Gold and What Moves it. |

Caesar Bryan tells Eric King of King World News:


"... Whatever course they decide to take, the bottom line is either way it will be very positive for gold and other hard assets. It is quite possible the gold market put in a low. The $1,550 area has been tested over and over again and has continued to act as strong support.


"The question at this point is, will there be a break to the upside? In the end, of course gold is going to appreciate. It’s just a matter of when and how. We are now moving into the more seasonally constructive period for gold. We also know central banks want to add to their existing positions. For that matter, so do private investors.


"So the reality is there is plenty of upside in the gold price. The backdrop is and continues to remains very positive for gold. ..."

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This Chart From The 70s Gold Bull Market Will Shock People

This Chart From The 70s Gold Bull Market Will Shock People | Gold and What Moves it. |

"Today 40 year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, put together a fascinating look at the gold bull market of the 1970s and contrasted that with what investors should look for in this bull market. ...


"... From 1969 to 1974, we saw a virtual ceiling on the price of Newmont followed by a severe decline ending in March of 1978. No doubt that there were far fewer stalwarts holding onto their positions after going through that brutal correction.


"For those who were not scared out of the bull market, but rather held on because of their convictions, they were now in for the ride of their life. Newmont bottomed at $10.13 in early 1978 and rose virtually straight up for almost 4 years before the price peaked.


"Going forward we will see massive moves to the upside in the metals and the mining stocks. ..."


Click over for the historic chart.

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Why the Economy Won't Ever Recover

Why the Economy Won't Ever Recover | Gold and What Moves it. |
Trimtabs Investments Research CEO Charles Biderman on why he is bearish on the U.S. economy.
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Goldbggr: The Coming 'Great Gold Pivot' and the New Fiat System

Goldbggr: The Coming 'Great Gold Pivot' and the New Fiat System | Gold and What Moves it. |

Interesting piece from Ted Weir:


"As I, like the rest of most of my friends, gape in fearful wonder at the financial drought and critical damage to the world's exchangeable currencies caused by the manipulative greed of those who own and or operate it, I have cause to look deeper into the potential of little moves which may fell the monster.


"I see a scenario emerging where that same group — the 'cream at the top' (of course I wish to point out that the scum also rises to the top) — can be seen now manipulating the market towards using gold as a pivot for the retention of there wealth and power. They are scared, very scared. And with good reason for they see this will be the last chance they have to stay at the cream-scum level.


"But most important they are blind and stupid. Their unbridled pure self-interest has shortened their vision while ..."

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ECB & Fed Moves This Week Could Quickly Push Gold To $1700

ECB & Fed Moves This Week Could Quickly Push Gold To $1700 | Gold and What Moves it. |

"... After weeks of indecisive trading action, gold finds itself in an opportune position. The yellow metal is hovering just below the top end of its two-month trading range between $1550 and $1630.


"Of course, prices could fall back again as they have after the last three unsuccessful attempts at these levels. But this time around, there will be a pair of strong catalysts that will decide which way prices move. ..."

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Is Inflation Flowering? | Michael Ashton |

Is Inflation Flowering? | Michael Ashton | | Gold and What Moves it. |

by Michael Ashton:


"To know that you're standing before a cherry tree, you needn't have cherries; cherry blossoms suffice. The seasons are long, so if you want to be able to harvest the fruit you need to look early for the signs.


"So it is with inflation, and some would say it is with markets in general. We look for the early hints (a less-poetic scribe might call them 'green shoots') that signal when the season has turned. With inflation, indeed, the season has turned long ago, when core inflation bottomed in Europe, the U.S., and Japan in 2010 (and in the UK even earlier). But as we have seen, markets have not yet internalized this turning, or in some cases (as with nominal yields) have begun the recognition and then reversed it.

"Consider now the humble 7.5% gain this month in the DJ-UBS commodity index (and comparably large moves in many other indices). It isn't the size of the move, or its consistency, that is interesting to me; rather, it is that the movement has come partnered with a break of commodities' relationship to the dollar. ..."

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Twitter / zerohedge: Geithner Says ‘It’s Still ...

Geithner Says ‘It’s Still a Very Tough Economy’. In other news, "Welcome to the Recovery" circa August 2010
Jul 31 via TweetDeck Favorite Retweet Reply

Instantly connect to what's most important to you. Follow your friends, experts, favorite celebrities, and breaking news.
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Gold treads water - Talk Vietnam

Gold treads water - Talk Vietnam | Gold and What Moves it. |



"Price of gold in Vietnam hovered below VND42.1 million a tael (1.2 ounces) on July 31 as global price stood still ahead of the US Federal Reserve and European...


"... Internationally, gold recovered slightly at the trading session in Asia this morning after edging down at the trading session in New York last night.


"Experts said that gold is likely to hold steady as investors anxiously wait for the US Federal Reserve’s policy meeting later in the day which is expected to shed light on the bank’s stance on further monetary easing, a key factor driving the precious metal prices.


"In Asia, gold for immediate delivery surged $2.3 an ounce to trade at $1,625.2 an ounce at 9am Vietnamese time.


"Last night, gold fell $1.7 an ounce to close at $1,622.9 an ounce in New York. ...."

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