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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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The “Black Hole of Deflation” turns into runaway inflation. What of Gold & Silver - Part 3

by Julian Phillips:

 

"... Deflation is now the global fear, far more so in the developed world than in the emerging world. But the deflation we are talking about is not simply an economic slowdown. Today’s deflation is a decay of trust, of confidence and consequently, hope. Deflation breeds prudence, caution, discouragement, which attacks growth. Banks slow down their lending, delay the processing of loan requests, take only very secured collateral for their loans. Individuals save in the hope that they can manage those rainy days they see coming.

 

"As the current type of deflation persists, it accelerates slowly but surely. Central banks [particularly Mr. Bernanke] are aware of this and try to simply promote an expansion of money that replaces lost asset values and no more. It is critical that no more than has been lost to asset/debt deflation, be added.

 

"There is a point where adding too much by way of newly issued money, that it is inflationary, cheapening the price and value of currency itself. This inflation is a very different animal to the one the public perceives it to be. As deflation rises, so there is a point where inflation takes off and becomes much more difficult to control. In fact, that point becomes ever more mercurial as deflations spreads and confidence continues to sag, as it continues to do in the States and in Europe right now. It is probably a misnomer to call it inflation because it is a cheapening of the value of money. ..."

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Inside Story - Rigged bank rates: Is there more to come?

In the wake of the bank rate-rigging scandal, Bob Diamond, Barclays chief executive, announced his resignation from the post with immediate effect, on Tuesda...

 

Worth watching. Max Keiser calls it like he sees it. Fraud.

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Smart Money Is Extremely Worried About What Lies Ahead

Smart Money Is Extremely Worried About What Lies Ahead | Gold and What Moves it. | Scoop.it

Stephen Leeb continues:

 

“... This man (Byron speaks with) is now in his eighties, and he has an amazing track record. This man has made a fortune. I paid very close attention to what this man’s comments were. He believes the debt levels of governments, in the developed world, we’re talking Europe and the US, means either depression or extreme stimulation, culminating in a lot of inflation.

 

"I’m summarizing, but basically that’s his bottom line. As evidence that this is his bottom line, he goes on to say that he really doesn’t own any stocks. But what he does own here are real things because real things are obviously what benefit when you have a lot of monetary stimulation. ..."

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Revealed: Why Gordon Brown Sold Britain's Gold at a Knock-Down Price - Ed Steer's Gold & Silver Daily

Revealed: Why Gordon Brown Sold Britain's Gold at a Knock-Down Price - Ed Steer's Gold & Silver Daily | Gold and What Moves it. | Scoop.it

by Ed Steer:

 

"... A great deal of Gordon Brown’s economic strategy would strike a sane man as troubling. Not a great deal was mysterious. The orgy of consumption spending, frequent extensions of the cycle over which he would “borrow to invest”, proclamations of the “end of boom and bust”: these are part of the armoury of modern politicians, of all political hues

One decision stands out as downright bizarre, however: the sale of the majority of Britain’s gold reserves for prices between $256 and $296 an ounce, only to watch it soar so far as $1,615 per ounce today.

 

"When Brown decided to dispose of almost 400 tonnes of gold between 1999 and 2002, he did two distinctly odd things.

 

"First, he broke with convention and announced the sale well in advance, giving the market notice that it was shortly to be flooded and forcing down the spot price. This was apparently done in the interests of “open government”, but had the effect of sending the spot price of gold to a 20-year low, as implied by basic supply and demand theory.

 

"Second, the Treasury elected to sell its gold via auction. Again, this broke with the standard model. The price of gold was usually determined at a morning and afternoon "fix" between representatives of big banks whose network of smaller bank clients and private orders allowed them to determine the exact price at which demand met with supply.

 

"Of course all this was "revealed" by GATA..."

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10 explosive bubbles that will kill capitalism Paul B. Farrell

10 explosive bubbles that will kill capitalism Paul B. Farrell | Gold and What Moves it. | Scoop.it
Capitalism is committing suicide and destroying America too.

 

"... in Grantham’s early 2012 newsletter he saw a bigger train accelerating: When he focused on the “common good, it became quickly apparent that capitalism in general has no sense of ethics or conscience. And probably its greatest weakness is its absolute inability to process the finiteness of resources and the mathematical impossibility of maintaining rapid growth in physical output.”

This we call the Myth of Perpetual Growth, the pseudo-scientific justification for modern capitalism.

 

"Grantham concludes that capitalism’s flaws are so deadly that while it does “a thousand things better than other systems,” it fails in those three crucial areas. And “unfortunately for us all, even a single one of these failings may bring capitalism down and us with it.”

 

"Get it? Capitalism is committing suicide and destroying America too. Here are 10 explosive bubbles that warn of this trend’s accelerating trajectory... " click through for the list, number one is Health-care and number two is Government.

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Gold the answer to currency wars | Last Word|chinadaily.com.cn

Gold the answer to currency wars | Last Word|chinadaily.com.cn | Gold and What Moves it. | Scoop.it

by Gao Changxin:

 

"... The New York-based hedge fund manager and author of Currency Wars: The Making of the Next Global Crisis says that the US dollar may no longer be the force it was in the past. Rather there will be a general swing in the financial system toward the gold standard, he says.

 

"Gold is not a commodity. Gold is not an investment. Gold is money par excellence," Rickards says.
The veteran fund manager says his target price of $7,000 (5,560 euros) for an ounce of gold makes even the most ardent of gold trumpeters seem conservative.

 

"Rickards says during the currency wars, the global economies often engage in frequent devaluations of their currencies against the currencies of their trading partners in an effort to steal growth from those trading partners.

 

"With both inflationary and deflationary factors at play, it is natural for investors to seek a safe haven for their investments. This, in turn, has pushed up the prices of gold, the historic hedge against inflation. ..."

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US Gold Net Exports Increased Substantially During First Quarter 2012 - Gold Seek

US Gold Net Exports Increased Substantially During First Quarter 2012 - Gold Seek | Gold and What Moves it. | Scoop.it
By Steve St.Angelo

Something very interesting took place in the first three months of 2012. Last year, the United States was a net importer of gold during the first quarter. However this year, the U.S. became a huge net exporter of gold during the same time period. This information was acquired from the latest USGS Gold Mineral Industry Surveys.

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Schnapp's Macro Musings: Economic Growth Weak and Getting Weaker - TrimTabs Money Blog

"According to our real-time withholding tax based model, the U.S. economy added only 75,000 jobs in June, well below expectations of 100,000 to 125,000 new jobs. Why is job growth so anemic? Because the economy is still in the process purging the mal-investments left over from the bursting of the housing bubble, destroying wealth and contracting credit. What we have is high unemployment, weak wage and salary growth, lackluster job growth, one in seven households in foreclosure, and a median household net worth that is some 40% lower than it was in 2007. Until we are on the other side of this process, job growth and wage and salary growth will be anemic, at best. ..."

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Major banks say they are ready to go under — RT

Major banks say they are ready to go under — RT | Gold and What Moves it. | Scoop.it

"The US Federal Deposit Insurance and Federal Reserve released public summaries of plans for quick liquidation of nine of the world’s largest banks in the case of an emergency, without government bailouts.

 

"Complex financial firms with more than $250 billion in nonbank assets including J.P. Morgan Chase, Bank of America, Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley, Barclays PLC, Deutsche Bank, Credit Suisse and UBS were the first to prepare the worst case scenarios by July 1. In total, about 125 banks are expected to submit plans to the regulators by the end of 2013.


"Public summaries reveal that Morgan Stanley and Goldman Sachs plan to sell assets or stand-alone businesses to other financial firms, private-equity investors or insurance companies in the event of a collapse. Citigroup said its banking business could be split off from the parent company and recapitalized as a smaller bank. Credit Suisse plans to sell its businesses to hedge funds, banks and securities firms. ..."

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Mich. digs for tax gold in mining boom

Mich. digs for tax gold in mining boom | Gold and What Moves it. | Scoop.it
In recent years, market prices for nickel, copper, silver and other metals have been strong enough to entice mining and processing companies for another go at the state's underground treasures.
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Unemployment To Remain High Through 2016: Report

Unemployment To Remain High Through 2016: Report | Gold and What Moves it. | Scoop.it

by Jeremy B. White:

 

"... Most of the 32 economists polled in an Associated Press Economy Survey forecast that the unemployment rate will remain above 6 percent for at least the next four years, significantly higher than the 6 percent or lower that would mark a robust economy.

 

"Unemployment has hovered stubbornly around 8 percent for months now, and economists predicted it will still be there come election day. That could spell bad news for Obama, but it might not change under a Romney administration.

 

"The election isn't going to be a miracle cure for the unemployment rate -- that's for sure," Sean Snaith, an economics professor at the University of Central Florida, told the AP. ..."

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Central Banks Move to Fuel Economy on 3 Fronts - New York Times

Central Banks Move to Fuel Economy on 3 Fronts - New York Times | Gold and What Moves it. | Scoop.it

by KEITH BRADSHER and MELISSA EDDY:

 

"In the span of less than an hour on Thursday, China’s central bank and the European Central Bank cut interest rates and the Bank of England stepped up its economic stimulus program.

 

"While the moves were not coordinated, they emphasize the concern financial officials have about a global economic slowdown and highlight the role central banks are playing in seeking to bolster growth.

 

"China’s central bank unexpectedly cut regulated bank lending rates by nearly a third of a percentage point and made a rule change that could reduce borrowing rates for companies with good credit by an additional three-fifths of a percentage point. ..."

 

 

The actions may not be coordinated, though the jury is still out, but the reaction is. 

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Central Banks Helpless As Denmark Goes NIRP, Cuts Deposit Rate To NEGATIVE 0.2% | ZeroHedge

Central Banks Helpless As Denmark Goes NIRP, Cuts Deposit Rate To NEGATIVE 0.2% | ZeroHedge | Gold and What Moves it. | Scoop.it

by Tyler Durden:

 

"A few days ago we noted that the ECB may well be contemplating the monetary neutron bomb, which would see it lower rates to below zero, ushering in a Negative Interest Rate Policy. Today, Mario Draghi cut such speculation short promising the ECB has not discussed this. Yet one bank which certainly has is the Danish Central Bank, which just lowered its Discount Rate to 0%, joining China, England, the ECB, and, of course, Kenya in easing, but also went one step further and cut its deposit rate to negative 0.2%. Keep a note of this: NIRP is coming to a central bank, and shortly thereafter to a bank deposit branch, near you very soon. ..."

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Reporting On The Golden Fleece | ZeroHedge

Submitted by Mark Grant, author of Out Of The BoxThe Greek

 

"... We are at that moment in time where Greece has capitulated and it is going to be hanging or life imprisonment and Greece, eyes downward cast, is waiting for the verdict. This situation may have been long in coming but it is going to be a disaster for the IMF and for the European Union however it goes. ..."

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Serious Fraud Office to Investigate Barclays, Other Banks in Libor Fixing Scandal

Serious Fraud Office to Investigate Barclays, Other Banks in Libor Fixing Scandal | Gold and What Moves it. | Scoop.it

by Lianna Brinded:

 

"The UK's Serious Fraud Office (SFO) revealed that it is formally investigating Barclays in the the London Interbank Offered Rate (LIBOR) fixing scandal that has dominated the news over the past week.

 

"In a one sentence statement, the governmental unit said: "The SFO Director David Green QC has today decided formally to accept the LIBOR matter for investigation."

 

"When IBTimes UK spoke to the SFO's press office immediately after the statement to clarify whether this included any other banks, other than Barclays, the spokesperson responded: "As you can tell, we said 'Libor matter' which is wide ranging and encompassing and Barclays falls under that."

 

"Then, when IBTimes UK asked if it would include the individual traders or Bob Diamond in that "wide-range", the spokeperson said that "we will not comment or feel comfortable commenting on individual firms or people. ..."

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China`s gold output still rising - but at a slower pace?

China`s gold output still rising - but at a slower pace? | Gold and What Moves it. | Scoop.it

Author: Lawrence Williams

LONDON (MINEWEB) -

 

"Figures for the first five months of this year published yesterday by China's Ministry of Industry and Information Technology show the country's gold output for the period rose 6.59% year on year to 140.7 tonnes. However this suggests that the world's largest gold producer's pace of increase in output could be declining, although it is yet too early to say. But, in relation to the 10% year on year gold production growth reported at the end of the first quarter the latest figures suggest the rising trend in output may have declined in April and May.

 

"Even so, May gold production was still put at 31.2 tonnes - a figure which, if extrapolated over the full year would see total output rise nearly 4% above last year's total of 360.96 tonnes. ..."

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Central Planners Are Making Desperate Maneuvers Right Now

Central Planners Are Making Desperate Maneuvers Right Now | Gold and What Moves it. | Scoop.it

Caesar Bryan tells King World News: 

 

"... The gold story is not really a story about quantitative easing, and the maneuvers of the central banks over the last five years. The gold story really had its beginning in 1971 when the world came off what were the last vestiges of the gold standard.

 

"What has happened since then is this huge and unprecedented growth of debt. This is what is now coming to the market’s attention. But all of this started way back in the 1970s. Investors have to realize that there has been this extraordinary growth of debt, and it has become apparent that it is unsustainable. The issue is who is going to take the losses? ..."

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Peter Grandich on the Libor scandal

Peter Grandich on the Libor scandal | Gold and What Moves it. | Scoop.it

Peter Grandich on the Libor scandal:

 

"... The Libor scandal is perhaps the biggest scandal in years and hardly a peep from the media. It’s amazing that news of market after market being manipulated yet any mention that the gold market is manipulated and those who say it is are called kooks, tin-foil hat wearers, and worse."

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Chinese government speeds up heavy rare earth stockpiling

Chinese government speeds up heavy rare earth stockpiling | Gold and What Moves it. | Scoop.it

RENO (MINEWEB) -

 

"The Chinese government is awarding state funds for interest-free loans for the strategic buying of heavy rare earth oxides to stockpile because concerns that reserves are running low, a state-owned newspaper reported.


"Jia Yinsong, head of the rare earth department at China's Ministry of Industry and Information Technology, said Beijing has identified 11 rare earth mining zones in order to carry out the stockpiling of the nation's rare earths.

 

"China Securities Journal said current low rare earths prices had prompted the start of China's strategic buying and the resources could be used to address future rare earths resources shortfalls. The oxides under consideration for stockpiling include Terbium, dysprosium, europium, and yttrium. ..."

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EURO GOVT-Spanish 10-year yields back above 7 percent - Reuters

EURO GOVT-Spanish 10-year yields back above 7 percentReutersSpanish 10-year yields over 7 percent* Two-year Bund yields turn negative after ECB rate cut* Bund futures hit three-week highs* Markets unconvinced the ESM can ease periphery tensionsBy ...
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The US and EU Are Desperately Seeking Heavy Rare Earths: Jeb Handwerger [MAT, MRHEF, MDL, MLLOF, MRD, QRE, BR3, QREDF, QRM, QRM, TSM, TAS, TASXF, T61, UCU, UURAF] - The Gold Report

The US and EU Are Desperately Seeking Heavy Rare Earths: Jeb Handwerger [MAT, MRHEF, MDL, MLLOF, MRD, QRE, BR3, QREDF, QRM, QRM, TSM, TAS, TASXF, T61, UCU, UURAF] - The Gold Report | Gold and What Moves it. | Scoop.it
Despite market malaise, the outlook for rare earth element demand is growing more and more compelling. China still controls a majority of the supply, but has been cautioning the world that even its reserves can't last forever.

 

A littel too late, I fear.

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oftwominds-Charles Hugh Smith: The Real-World Middle Class Tax Rate: 75%

oftwominds-Charles Hugh Smith: The Real-World Middle Class Tax Rate: 75% | Gold and What Moves it. | Scoop.it

by Charles Hugh Smith:

 

"If we include all taxes, the real-world tax rate is much higher than the "official" income tax rate.

 

"For those Americans earning between $34,500 and $106,000, the real-world middle class tax burden in high-tax locales is 15% + 25% + 5% + 15% + 15% = 75%. Yes, 75%.

 

"Before you start listing the innumerable caveats and quibbles raised by any discussion of taxes, please hear me out first. Let's start by defining "taxes" as any fee that is mandated by law or legal necessity. In other words, taxes are what is not optional.

 

"If we include all taxes, the real-world tax rate is much higher than the "official" income tax rate. These "other taxes" vary from nation to nation. France, for example, has a "television tax." It is mandatory, and since virtually every household has a TV this operates as a universal tax. The argument that this is "optional" is specious. ..."

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Greyerz: We’re Dealing With Government Lies & Misinformation

Greyerz: We’re Dealing With Government Lies & Misinformation | Gold and What Moves it. | Scoop.it

Care to be shocked?

 

Egon von Greyerz tells King World News:

 

"... The US, like many parts of the world, has had a false prosperity built on debt. The total debt including government, private, banking, etc., is at least $60 trillion. When you add to that the unfunded liabilities, together they will be at least $70 trillion. So now you are up to $130 trillion of debt and liabilities.

 

"US derivatives, the official figures for the largest banks in the US, the total is roughly $250 trillion. If the numbers were correctly reported, I believe the derivatives figure would be closer to $400 trillion.

 

"So when you add in derivatives, the US has over a staggering $500 trillion of risk. You have to remember that’s at zero interest rates. Just look at the recent JP Morgan fiasco, the enormous risk that these derivatives represent. So you are talking about $500 trillion against a GDP of around $15 trillion.

 

"The leverage and debt in the US system is absolutely massive. The risk is enormous. The US has just been fortunate to have the focus be on Europe for quite some time. Soon the US will have the spotlight shined on it, and one day these derivatives will unravel. ..."

 

Be sure to click over for the full piece.

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The Biggest Financial Scam In World History | ZeroHedge

"There have been numerous big banking scandals recently.

 

"But the Libor scandal is the biggest financial scam in world history. See this and this.

 

"The former CEO of Barclays said today that banks across the world were fixing interest rates in the run-up to the financial crisis . ..."

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“No Americans Need Apply” Jobs Ads Exposed By It Advocate Group; Demands ... - San Francisco Chronicle (press release)

“No Americans Need Apply” Jobs Ads Exposed By It Advocate Group; Demands ... - San Francisco Chronicle (press release) | Gold and What Moves it. | Scoop.it
“No Americans Need Apply” Jobs Ads Exposed By It Advocate Group; Demands ...San Francisco Chronicle (press release)these companies go to EEO-Rehab, Dice must step in and remove all job ads that even have a hint of discrimination, said Conroy,...
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