Friday, 27 December 2013

Max Keiser - The Debt Incest Culture

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the debt incest cult operating on Wall Street in which JP Morgan's Sons and Daughters mate two units of related debt for four generations and thus spawning a deformed and cross-eyed credit market. In the second half, Max interviews Jeff Berwick of about the great Bitcoin divide in the libertarian community and about the great migration from the USA to Mexico and beyond by Americans seeking more liberty and freedom.

- Source, Max Keiser:

Wednesday, 25 December 2013

Max Keiser - Bitcoin, Bernanke & Buffett

Max Keiser of Russia Today drops by to explain the genesis and implications of the digital currency Bitcoin, why The Federal Reserve and the banking system should apologise to the people for manipulating interest rates, how Warren Buffett is complicit in the Mexican drug trade by purchasing Wells Fargo, and Max's crazy times in the 1980s as a New York City stockbroker by day and punk-rock party animal by night.

- Source, The London Reel:

Monday, 23 December 2013

The Catastrophic US Nightmare As 2013 Comes To An End

The same stock market carnage awaits investors just around the corner if the Fed decides it is time to end QE. Only this time the spike in rates won’t be caused by inflation but by the central bank itself. It doesn’t matter if inflation causes investors to fear that the Fed will raise rates (as it did 1987); or if borrowing costs increase due to the fact that the Fed has to stop its indiscriminate and massive manipulation of the yield curve -- the result will be the same.

The Doves at the helm of the Fed realize this and that is why they are extremely reluctant to end QE. Investors most likely have at least until March of next year before they have to worry about a genuine tapering of Fed asset purchases ... if at all; because the economy should take another turn downward due to the implementation of the Unaffordable Care Act and interest rates that have already increased. Nevertheless, it is essential to have a plan in place to preserve your assets and profit from the equity market crash in the unlikely event the Fed does go down the tapering road early next year.

If the Fed does not begin winding down QE by the early part of 2014, the markets will understand that the central bank will be in the debt monetization business for many years to come and risk assets will soar. On the other hand, if the Fed begins tapering assets within the next few months, the markets and economy will tumble. The global economy sits on a narrow ledge. On the one side there exists massive asset bubbles and inflation; and on the other side there lies a deflationary depression. It is now crunch time for the Fed to choose which way we fall.

- Source, Michael Pento via King World News, read more here:

Saturday, 21 December 2013

Peter Schiff - Market Crash 2014

Peter Schiff is an American businessman, investment broker, author and financial commentator. He is the CEO of Euro Pacific Capital and host of the nationally syndicated Peter Schiff Show. In 2010 Peter ran for the United States Senate and is a regular on CNBC, Fox News, and The Daily Show with Jon Stewart.

- Source, The London Reel:

Thursday, 19 December 2013

Rob McEwen - Quick Move Up in Gold is Coming

The move in gold can be very quick. I’ll give an example; We hit lows in July of this year and then in the month of August, metal prices turned around. The price of gold was going up but the mining stocks just took off. There were gains of 25%, 75%, 100% in the sector in the space of less than 20 days.

It illustrates how we can move from a market that’s operating basically on a no-bid basis where no one wants to buy, to suddenly getting into a space where no one is offering any stock and prices are forced up as a result of that. I’m quite convinced we’re going to see that again in the not too distant future, and that’s what makes it exciting in this space.”

- Source, Rob Mcewen via Bull Market Thinking:

Tuesday, 17 December 2013

Back to Silver Fundamentals

Beyond the typical underlying changes in money supply there are very important elements of demand that continue to push the price of physical silver higher and higher. This is despite the fact that silver has been money for much longer then gold.

One element is the elasticity of demand for silver, particularly in the manufacturing of electronics.

Silver is the best conductor of electricity known to man and even at a current prices, it is very inexpensive for use in consumer electronics.

Silver Inelasticity

Silver cannot and will not be replaced by the industrial sector as a conductor of electricity for two reasons:

1) it is relatively inexpensive, and
2) it is the best product for the job.

When a computer manufacturer begins to source components to build its consumer products, the company buys tons of glass, pounds of silicon, and tiny amounts of silver.

When you buy a computer that costs $500-$1000, it contains, at most, 1 gram of silver. Most computers contain fractions of that amount, for a maximum cost of $.60.

Even if silver were to explode in price from $18 per ounce to $180 per ounce (which is a dramatic change) the price of the silver component in a computer would grow from $.60 to $6.

Thus, even after silver explodes in price, the computer manufacturers will still be very much willing to use silver since $6 on a $500 computer is just 1.2% of the price.

Technological Improvements

Silver's demand can easily be contrasted with the emphasis on technology during the past half century.

Prior to World War II, very few homes owned electronic devices and silver's industrial use was limited to only photograph development.

In contrast, the post-war family owned microwaves, TVs, toasters and other appliances including washer and dryers – which all contain silver.

And even in the past decade, the average consumption of silver by the average person has grown.

Today, each person owns a cellular phone, TV, computer, monitor, printer, router, and a myriad of computing peripherals that all contain silver.

It is without question that demand for silver as an industrial metal has exploded with technological achievements - but the biggest use for silver is just now being uncovered...

- Read the full article at Silver Coin Investor here:

Sunday, 15 December 2013

Largest Swiss Refinery Unable to Source Gold

We met with the managing director of the largest refinery in Switzerland and spend about two hours talking to him, we learned some very interesting things.

At this Swiss refinery there have been several times this year on which they were unable to source gold. They’re bringing in good delivery bars, scrap and dore from the mines, basically all they can get their hands on. This gentleman has been in the business for 37 years, he was there during the last bull market in the late seventies. I asked him when was the last time this has happened, that he was unable to source gold, he said never. And I clarified it, I asked: in the last 37 years you’ve worked in the gold industry this has never happened? He said: this has never happened.

He said sometimes when they get gold in, it’s coming from the back corners of the vaults. He knew this because these were good delivery bars marked in the sixties. This is a huge supply squeeze and its worse than anything that has happened in the last four decades. At some point there is going to be a massive squeeze on the price.

We are on the threshold of a situation that has never occurred before. A squeeze is imminent, it could take 3 months or 6 months, but all I know is that it’s coming, and I know that with 100 % certainty.

- Source, Silver Doctors:

Friday, 13 December 2013

Gerald Celente - The Whole Thing is Collapsing

"Any self-respecting adult that hears McConnell, Reid, Boehner, Ryan, one after another, and buys this baloney… they deserve what they get.

And as for the international scene… the whole thing is collapsing.

That’s our forecast.

We are saying that by the second quarter of 2014, we expect the bottom to fall out… or something to divert our attention as it falls out."

- Gerald Celente

Wednesday, 4 December 2013

The Real Reason to Own Gold

The U.S. and world are heading towards serious trouble. The financial markets are being kept alive due to the monetization of debt on a massive scale. This has produced a huge dislocation in the fundamental valuation of assets.

Currently, stocks, bonds and paper assets are on the receiving end of this monetary stimulation, while the physical assets such as the precious metals & commodities have been beaten down to assist in lowering the already low manipulated inflation rate.

Investors who once thought the precious metals were a safe store of value, are now beginning to question their confidence in gold as the price continues to head down towards its low set in June. This is precisely what the fiat monetary authorities planned for and the public has taken it…. HOOK, LINE & SINKER.

The nearly $90 trillion in Global Conventional Assets will perform rather badly in a peak oil environment. The reason why gold and silver will be a hedge against peak oil is due to the store of “Economic Energy.”

- Source, SRSRocco Report:

Monday, 2 December 2013

China to Halt US Debt Purchases

Gold and silver have been systematically crushed as of lately. It appears that the predictions I wrote about last week are already unfolding. This would mean that we still have some downside movement before prices in gold and silver will regain the advantage and begin to move higher. For now the manipulators control the paper market. I think, and I believe they know, that this is soon to change.

Last week a MAJOR news story hit the air waves. The impact of this story will be felt for years to come, yet if you only listened to the main stream media you would never know it. The Peoples Bank of China released a statement last week indicating the following:

“It’s no longer in China’s favor to accumulate foreign-exchange reserves”

The impact of this statement, which was said by Yi Gang, a deputy at the central bank of China is staggering. It is mind-blowing that this isn’t the major headline of every financial publication available. What the Peoples Bank of China is saying is that it is not in the best interest of China to continue to accumulate US debt and stockpile US reserves. If China steps out of this market, the United States is in serious trouble. The FED is already the largest purchaser of US treasuries. A sad but very real fact (this is akin to paying off a credit card with a credit card). If China steps out of this market, the FED is going to have to monstrously increase their QE program.

Citizens of China should rejoice this news. This means the Yuan is going to drastically appreciate in price. The cost of goods are going to drop and their huge savings that they have accumulated are going to rise in price, thus increasing the standard of living for its citizens. Is China now ready to stop subsidizing the standard of living for US citizens at their own expense? It appears so.

At the same time, the amount of gold China is importing into the country is hitting record levels and is set to increase again next year! Clearly they have decided they have had enough and are gearing up to be a major player in the currencies market. Perhaps even replacing the US dollar as the reserve currency of the world in years to come, something I believe they will be quite capable of doing once they announce the true amount of their gold reserves (a number which I believe is strategically understated).

China Gold Imports
The US government is not going to take this news lightly and will desperately do everything they can to hold onto power. This is part of the reason I believe this news story is getting no media traction in the United States. ”See no evil, hear no evil” appears to be their motto. To that I say good luck.

- Source, Sprott Money Blog: