Stewart Thomson: Gold Fed Balance Sheet Breakout!

January 30, 2013 By 18 Comments

BernankeSubmitted by Stewart Thomson:

Quantitative easing and “rates to zero” policy is spreading to every major economy around the world.  Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide.   By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.
The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”.  Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.

The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions.  The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday.  For all practical intents and purposes, the primary driver of the gold price is the balance sheet of the central bank of the United States.

[Read more...]

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Gold Outlook “Bearish in Short Term” as Fed Meeting Looms, But “Growing Global Liquidity Makes Long Term Outlook Bullish”

January 29, 2013 By 8 Comments

Bernanke DimonWHOLESALE Gold Bullion prices climbed back above $1660 an ounce Tuesday morning, broadly in line with where they ended last week, as stocks and commodities fell slightly and the Dollar ticked higher against the Euro ahead of tomorrow’s interest rate decision from the US Federal Reserve.
“We are seeing a technical rebound following a few days of price decline,” one trader in Shanghai told newswire Reuters this morning.  “In the short run, gold is still going to drift without much conviction, though over the longer term it is still facing very heavy pressure on the upside.“  Like gold, silver regained some ground this morning after losses in recent days, climbing back above $31 an ounce.

In the US, the Federal Open Market Committee begins its two-day meeting today ahead of the Fed’s latest policy decision tomorrow.  “This week’s FOMC meeting and US non-farm payrolls [on Friday] will be key in setting gold’s price trajectory,” says a note from Barclays Capital. [Read more...]

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Bank Run in Progress? Massive $114B Withdrawn From 25 Largest US Banks First Week of January!

January 29, 2013 By 13 Comments

gold bank runSD contributor AGXIIK warned readers months ago about the FDIC’s expanded deposit insurance which was set to expire Dec 31st, predicting that the expiring expanded deposit insurance enacted in the wake of the 2008 financial panic could trigger a bank run. 
Many scoffed at the report and its implications, due to the fact that the story received zero attention by the likes of Bloomberg, CNBC, or even ZH.

It appears that the expiring expanded FDIC insurance has in fact triggered a massive deposit withdrawal at the nation’s largest banks, as the Fed is reporting that $114 billion were withdrawn from the largest 25 US banks over the first week of January, the largest fund outflow since the 9/11 attacks, even exceeding the pace of the outflow during the 2008 financial panic!

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German Gold Repatriation Is Victory For Transparency And GATA

January 29, 2013 By 4 Comments

The Financial Times has said that the Bundesbank’s move to repatriate 674 tonnes of the German gold reserves from Paris and New York to Frankfurt is a victory for openness, transparency and for those who have campaigned for transparency in the gold market for years.

The FT said that the move is important -

“not for what it says about Germany’s faith in French or American vaults; nor for the cost of shifting 674 tonnes of gold; but because it is a major victory for transparency in the gold market.” [Read more...]

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Gold Bank Run Accelerating…Now the Swiss Want Their Gold Back- All 1040 Tons of It!

January 25, 2013 By 61 Comments

With last week’s announcement by the Bundesbank of the repatriation of 674 tons of German gold from Paris and NY over the next 7 years, we predicted that an avalanche of gold repatriation requests would soon be made to the BOE and the NYFed. 
It appears that Switzerland may be next to the game, much to the dismay of the SNB.  The Swiss gold initiative, an initiative to Secure the Swiss National Bank’s Gold Reserves, launched in March 2012 by four members of the Swiss parliament, has grown to 90,000 supporters. 
Once 100,000 supporters are achieved, the Swiss Parliament must take up the referendum. 

The initiative asserts that the Swiss people should have a right to vote on 3 things, none of which will please the banking cartel: [Read more...]

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Bank of Japan Announces Open Ended Direct Monetization

January 22, 2013 By 10 Comments

While in reality the Fed is the market for US debt via QE∞, there is at least a thin line between the Fed’s indirect monetization of the US debt/deficit, the Bank of Japan has obliterated that thin line, announcing open ended direct monetization of JGB’s, beginning with 13 trillion in JGB monetization in January 2014. 

Welcome to the start of full-blown currency wars. 
Got PHYZZ?

Full announcement is below:

[Read more...]

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Jim Willie: The Petro-Dollar Sunset

January 18, 2013 By 28 Comments

jim willieWith this week’s 600+ ton gold repatriation announcement by the Bundesbank, Germany certainly appears to be taking Jim Willie’s advice to heart that those who exit the USdollar system first will be the leading nations in the next global economic chapter.

By Jim Willie,  GoldenJackass.com

The day is nigh where the Saudis accept non-US$ payments for crude oil. They might first accept Chinese Yuan, then Japanese Yen, then Korean won, then Gold itself through big Turkish bazaars.
The Petro-Dollar is being isolated for sunset, and what will be a key event is the removal of the USDollar as center for global trade settlement.

Those nations that depart from the entire USDollar system early will be the leading nations in the next chapter, with stronger foundations, richer solvency, emerging economies, healthier financial markets, efficient credit engines, growing wealth, stronger political helm activity, and better functioning systems generally.

Those nations that stick with the crumbling USDollar system stubbornly will find a horrible fate with devastating effects, rampant economic damage, broken financial markets, sputtering credit engines, tremendous loss of wealth, wrecked supply lines, poverty spreading like wildfire, ruined political structures, social disorder, isolation from the rest of the world, and a fast ticket to the Third World.

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Jim Sinclair: German Gold Repatriation is the Most Significant Gold Event in 50 Years, Beginning of the End of the US Dollar As Reserve Currency

January 15, 2013 By 29 Comments

Legendary gold trader Jim Sinclair has sent an email alert to subscribers today regarding last night’s news that Germany will begin repatriating it’s gold held on deposit at the NY Fed back to the Bundesbank, as well as all 374 tons held at the Bank of France.
Sinclair states that history will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice, and that under normal circumstances, no major central bank would insult another major central bank in the way that the Bundesbank just has.

Sinclair states that the Bundesbank repatriating its gold reserves is the most significant event in the gold market since Charles De Gaulle called the US hand that it would stand by convertibility, and that gold is headed to $2111 in the near future in the wake of the Bundesbank’s actions.

Sinclair’s full MUST READ alert below: [Read more...]

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Bundesbank to Repatriate 374 Tons of Gold From Bank of France, Substantial Portion of Gold Held at the NY Fed!!

January 15, 2013 By 36 Comments

While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2 centuries in America), the Bundesbank has just shattered the remaining confidence in the fractional bullion banking system, announcing that it will repatriate a portion of its gold reserves from the NY Federal Reserve, and ALL 374 tons of its gold held at the Bank of France!

In the months that followed Hugo Chavez’ 110 ton gold repatriation request in the summer of 2011, gold exploded nearly $400 as the bullion banks panicked.  As the Bundesbank’s official gold holdings held at the Fed and the Bank of France dwarf Venezuela’s 110 tons, don’t be surprised if the price of physical gold goes super-nova as Germany’s repatriation request plays out, as paper gold rehypothecated 100 times over must suddenly be conjured up in physical form.    [Read more...]

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Fed Issues JP Morgan Cease & Desist Over CIO Risk Management, Money Laundering

January 15, 2013 By 10 Comments

Ben Bernanke Jamie DimonThe Federal Reserve Monday issued it’s owners (JP Morgan Chase) a two separate Cease and Desist orders.  The first orders JPM to take corrective action regarding its prop-trade hedge fund known as the Chief Investment Office (CIO), and the second orders The Morgue to take corrective action regarding compliance with anti-money laundering requirements. 
The Office of the Comptroller reportedly also issued two similar orders against JPM Monday.

We’re sure Jamie’s conversation with Ben went something like this,  ‘You want us to do WHAT with our hedge fund?  Oh, yeah, sure Benny, we’ll get right on that.‘

Full release below: [Read more...]

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Watch Ben Bernanke Spew Propaganda on Economic Recovery to UMich Students LIVE at 4pm EST

January 14, 2013 By 8 Comments

Bernanke lectureThe Propagandist in Chief (aka Federal Reserve Chairman Ben Bernanke) is scheduled to give a lecture at the University of Michigan’s Gerald School of Public Policy at 4pm EST today on current economic issues and the recovery.

Have your buy orders ready, and prepare to Stack the Smack if the cartel MO of raiding the metals on Bernanke speeches/ FOMC releases continues.

Watch The Bernank’s speech live below at 4pm EST [Read more...]

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Banking Elite Continuing Policies Ensuring Devaluation of Fiat Currencies & Price Inflation in Commodities Such as Gold, Silver, Food, & Oil

January 12, 2013 By 8 Comments

dollar hyperinflationSubmitted by Deepcaster:

For several years, Notable Independent Commentators, including Deepcaster, have warned that the Elite Central Banks’ Orgy of Fiat Currency Printing, a la QE etc, would result in Price Inflation, so it is no surprise to us that The Bond King, Bill Gross of PIMCO, with about $2 Trillion under Management, would finally warn in his January 2013 letter to Investors of Impending Price Inflation in Key Commodities.  Of course, General Price Inflation is already here, if one looks at the Real Numbers (e.g., U.S. CPI at 9.8% per shadowstats.com) as opposed to the Bogus Official Ones.

Going forward, this Mega Bank-generated Price Inflation provides considerable Profit Opportunities, but only in certain kinds of Commodities, and especially in one Sector Bill Gross does not specifically mention.  In sum, Policies actually being Implemented by the Power-Banker Elite virtually ensure a continuation of Fiat-Currency Depreciating Policies, and thus Price Inflation in Certain Commodities Sectors, as well as Increasing Risk of Systemic Destabilizing à la 2008-2009.
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Jim Sinclair: Father Forgive Them, For They Really Do Not Know What They Have Gone & Done

January 9, 2013 By 13 Comments

Jim Sinclair has sent subscribers another alert this afternoon regarding the delay in the implementation of the Basel III requirements, which were set to make gold a Tier I asset- making the metal equal with cash or treasury bonds for capital liquidity requirements. 

Sinclair states that the entire reason that Basel III has been delayed is because the Western financial system simply does not have the ability in terms of real liquidity to meet the new requirements.  Sinclair states that the Western financial system cannot meet the requirements now, they will not be able to in 2 years, and that his conclusion regarding Obama’s appointment of Citi derivative dealer to the position of Secretary of the Treasury is:  Father forgive them because they (our esteemed leaders) really do not know what they have gone and done.

Sinclair’s full alert is below: [Read more...]

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Greg Mannarino: If the Fed Stops Printing, the Collapse Would be So Incredible That People Would Eat Each Other in the Street!

January 9, 2013 By 15 Comments

imagesIn his latest update, Greg Mannarino addresses the Fed’s minutes released last week, in which several Federal Reserve members supposedly stated QE will end by the end of 2013.   Mannarino states that the Fed ending QE at the end of the year is impossible, and that the Federal Reserve has absolutely no intention of stopping or even slowing quantitative easing.
As we stated upon the release of the Fed minutes, Mannarino states that the Fed’s threat to stop QE is pure propaganda designed to stall the rally in gold and silver that was getting underway last week.
He states that if the Federal Reserve were to stop printing money, everything would end, and the collapse would be so incredible that people would literally eat each other in the street!

Mannarino’s full update below: [Read more...]

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The Inflation – Deflation Reality in 2013

January 6, 2013 By 14 Comments

bernankeSubmitted by Deepcaster:

The five year chart of the CRB Index (a Broad Measure of Commodities Prices) shows three descending tops, which is suggestive of Deflation. But to conclude that Deflation is likely to be The Ruling Force in the Economy in 2013 would be a Dangerous Error.

Indeed, it is critically important for Investors to understand whether or not we are in an Inflation or Deflation, or both (we later explain how this is possible). Failure to understand The Reality about Deflation and Inflation is likely lead to poor or even lethal Investment decisions.

Here we explain The Inflation/Deflation Reality and indicate how to Profit.
In 2013, we will continue to see inflation in terms of the US dollar currency, and deflation in terms of gold.
[Read more...]

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