tag:blogger.com,1999:blog-74901779252195741592024-03-05T11:58:53.065-05:00Gold Harvest Under A Silver MoonA blog dedicated to commentary, technical analysis, and the general machinations of the global gold and silver bullion markets with additional commentary on the global economy and related commodity markets.greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.comBlogger956125tag:blogger.com,1999:blog-7490177925219574159.post-29321877900155321962014-05-27T11:20:00.000-05:002014-05-27T11:20:32.276-05:00The Destiny Of Gold And Silver Price Manipulation: FAILURE TO DELIVER<div dir="ltr" style="text-align: left;" trbidi="on">
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If you don't know the TRUE value of an ounce of physical Gold or Silver at these prices today...you never will...<br />
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<span style="font-size: large;"><b>THE SHOCKING TRUTH HISTORY CHANNEL CAN’T BROADCAST — Bix Weir</b></span><br />
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<span style="background-color: #eeeeee; font-family: tahoma, arial, sans-serif; font-size: 13px;">SGTreport.com, Published on May 26, 2014</span></div>
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<span style="background-color: #eeeeee; font-family: tahoma, arial, sans-serif; font-size: 13px;">The interview you are about to hear contains some of the most shocking information we’ve ever heard. Our friend and fellow precious metals researcher Road to Roota.com’s Bix Weir was recently interviewed by History Channel 2 for THREE HOURS as part of their new documentary style series America’s Book of Secrets. The information Bix shared with them on camera was to be aired in the episode titled America’s Book of Secrets: Secret Underground. What Bix said on camera was so shocking, after the interview the entire crew told him that they were going to pull all funds out of their bank accounts. But when Book of Secrets: Secret Underground aired, Bix had been cut from the show — Not one word Bix shared with them was allowed to be broadcast. But you can know it all right now… Find out the shocking secrets the History Channel could NOT broadcast.</span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com7tag:blogger.com,1999:blog-7490177925219574159.post-74867374935529859892014-05-26T08:59:00.001-05:002014-05-26T08:59:13.795-05:00Gold Manipulation AND The Death Of Money<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: large;"><b>James Rickards-Financial Collapse and Massive Shortages in Gold Coming</b></span><br />
By <a href="http://usawatchdog.com/author/greg-hunter/">Greg Hunter</a> On May 26, 2014<br />
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On financial collapse:</div>
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<span style="background-color: white; border: 0px; font-family: arial, sans-serif; font-size: 14px; line-height: 22px; margin: 0px; padding: 0px; vertical-align: baseline;">“Right now, we are on the precipice now. When you are on the precipice, it doesn’t mean you fall off immediately, but you are going to fall off because you can see the forces in play. What I tell clients and investors is it’s not as if we are going to make some mistakes and some bad things are going to happen. The mistakes have already been made. The instability is already in the system. <b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">We’re just waiting for that catalyst that I call the snowflake that starts the avalanche. You don’t worry about the snowflakes; you worry about the snow and that it’s unstable and it’s just waiting to collapse. </b>That’s what the system is right now; we are just waiting for a catalyst. People ask me all the time, what could it be? Technically, my answer is it doesn’t matter because it will be something. It could be a failure to deliver physical gold. It could be an MF Global financial failure. It could be a natural disaster. It could be a lot of things. The thing investors need to understand is the catalyst doesn’t matter. It’s coming because the instability is already there.”</span><span style="background-color: white; border: 0px; font-family: arial, sans-serif; font-size: 14px; line-height: 22px; margin: 0px; padding: 0px; vertical-align: baseline;"> </span></blockquote>
On Gold Manipulation:<br />
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<span style="background-color: white; border: 0px; font-family: arial, sans-serif; font-size: 14px; line-height: 22px; margin: 0px; padding: 0px; vertical-align: baseline;">“It will end when the physical shortage gets to the point that someone fails to deliver; which, at that point, there will be a buying panic. There could be a buying panic or what some people call a demand shock. One of the things I said about gold manipulation is if I was the manipulator, I would be embarrassed at this point. The manipulation is obvious. The evidence is coming in from all directions. . . . The manipulation is clear. When will it end? It will end when there is a physical shortage that pops up somewhere, or it will end with a short squeeze.”</span><span style="background-color: white; border: 0px; font-family: arial, sans-serif; font-size: 14px; line-height: 22px; margin: 0px; padding: 0px; vertical-align: baseline;"> </span></blockquote>
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<span style="background-color: white; font-family: arial, sans-serif; font-size: 14px; line-height: 22px;">“We are going to get a very large demand shock coming from China and India. Let me explain those two cases. We have a brand new government in India, and they are going to repeal the import tax on gold. We also have the wedding season coming up. . . . So, India is set up for a very large surge in demand in the fourth quarter. Now, over to China, this is one of the things that it’s happening faster than I originally thought. The credit collapse story is happening in real time. I said (in my book) this might be a 2015 event, but it looks like it is happening now. Defaults are piling up. We are seeing money rise. We’re seeing people march down to the banks . . . trying to get their money back. . . . So, if they can’t buy foreign stocks, domestic stocks, don’t want to put their money in the bank and are getting out of real estate, then what’s left? The answer is gold. . . . I see a demand shock coming from China. . . . You could see a scramble to buy gold. It is going on anyway, but you could see it accelerate. That will take down the manipulation. Once the markets prevail over the manipulators, then watch out.”</span></blockquote>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-10415092884197316782014-05-25T08:16:00.001-05:002014-05-25T08:16:47.287-05:00The Future Of The US Dollar In Three Pictures<div dir="ltr" style="text-align: left;" trbidi="on">
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com8tag:blogger.com,1999:blog-7490177925219574159.post-75336686946979385882014-01-28T11:42:00.000-05:002014-01-28T14:28:31.148-05:00"Demand Physical Gold" As One Day Paper Price Manipulation Will End "Catastrophically"<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; font-family: sans-serif; font-size: 14px; line-height: 21px;"><b>"Physical gold is in a serious present shortage with price implications soon to be seen."</b></span><br />
<span style="background-color: white; font-family: sans-serif; font-size: 14px; line-height: 21px;"> --Jim Sinclair</span><br />
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<b>"We are currently seeing all time lows in registered gold and all time highs in claims against that gold. What is wrong with this picture?"</b><div>
--Art Cashin<br /><span style="background-color: white; font-family: sans-serif; font-size: 14px; line-height: 21px;"><br /></span>
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<a href="http://www.zerohedge.com/news/2014-01-27/scrambling-gold-mints-around-world-plead-we-can%E2%80%99t-meet-demand">Scrambling Gold Mints Around The World Plead: "We Can’t Meet The Demand, Even If We Work Overtime"</a></h3>
Submitted by <a href="http://www.zerohedge.com/users/tyler-durden">Tyler Durden</a> on 01/27/2014<br />
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One of the big disconnects over the past year has been the divergence between the price of paper gold and the seemingly inexhaustible demand for physical gold, from China all the way to the US mint. Today we get a hint on how this divergence has been maintained: it now appears the main culprit is the massive boost in supply by gold mints around the world working literally 24/7, desperate to provide enough supply to meet demand at depressed prices in order to avoid a surge in price as bottlenecked supply finally catches up with unprecedented physical demand.<br />
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Bloomberg reports that "global mints are manufacturing as fast as they can after a 28 percent drop in gold prices last year, the biggest slump since 1981, attracted buyers of physical metal. The demand gains helped bullion rally for five straight weeks, the longest streak since September 2012. That won’t be enough to stem the metal’s slump according to Morgan Stanley, while Goldman Sachs Group predicts bullion will "grind lower" over 2014." Odd - one could make the precisely opposite conclusion - once mints run out of raw product, the supply will slow dramatically forcing prices much higher and finally letting true demand manifest itself in the clearing price.<br />
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<a href="http://www.zerohedge.com/news/2014-01-27/scrambling-gold-mints-around-world-plead-we-can%E2%80%99t-meet-demand">READ MORE</a></div>
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<a href="http://www.bloomberg.com/news/2014-01-27/gold-mint-runs-overtime-in-race-to-meet-world-coin-demand.html">Gold Mint Runs Overtime in Race to Meet World Coin Demand</a></h3>
By Debarati Roy Jan 27, 2014<br />
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Austria’s mint is running 24 hours a day as global mints from the U.S. toAustralia report climbing demand for gold coins even while Goldman Sachs Group Inc. says this year’s price rebound will end.<br />
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Austria’s Muenze Oesterreich AG mint hired extra employees and added a third eight-hour shift to the day in a bid to keep up with demand. Purchases of bullion coins at Australia’s Perth Mint rose 20 percent this year through Jan. 20 from a year earlier. Sales by the U.S. Mint are set for the best month since April, when the metal plunged into a bear market.<br />
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Global mints are manufacturing as fast as they can after a 28 percent drop in gold prices last year, the biggest slump since 1981, attracted buyers of physical metal. The demand gains helped bullion rally for five straight weeks, the longest streak since September 2012. That won’t be enough to stem the metal’s slump according to Morgan Stanley, while Goldman Sachs Group predicts bullion will “grind lower” over 2014.<br />
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“The long-term physical buyers see these price drops as opportunities to accumulate more assets,” said Michael Haynes, the chief executive officer of American Precious Metals Exchange, an online bullion dealer. “We have witnessed some top selling days in the past few weeks.”<br />
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<a href="http://www.bloomberg.com/news/2014-01-27/gold-mint-runs-overtime-in-race-to-meet-world-coin-demand.html">READ MORE</a></div>
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The FT Goes There: "Demand Physical Gold" As One Day Paper Price Manipulation Will End "Catastrophically"</h3>
Submitted by Tyler Durden on 01/25/2014<br />
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What have we done: after a series of reports in late 2012 in which we showed, with no ambiguity, that not only might the Bundesbank's offshore held gold be severely "diluted" (follow our 2012 exposes on German gold <a href="http://www.zerohedge.com/news/2012-10-24/why-did-bundesbank-secretly-withdraw-two-thirds-its-london-gold">here</a>,<a href="http://www.zerohedge.com/news/2012-10-27/bundesbanks-official-statment-where-its-gold-and-isnt">here</a>, <a href="http://www.zerohedge.com/news/2012-10-28/some-follow-questions-bundesbank-and-its-gold">here</a><a href="http://www.zerohedge.com/news/2012-11-03/bundesbank-continues-golden-damage-control-invokes-ghosts-simon-gruber-and-goldfinge">, and here</a>), but <a href="http://www.zerohedge.com/news/2012-11-09/exclusive-bank-england-fed-no-indication-should-course-be-given-bundesbank">that on at least one occassion</a>, the Fed and the Bank of England conspired against the Buba in returning subpar quality gold, the Bundesbank shocked everyone in early January 2013 when it announced it would repatriate 300 tons of gold helt in New York and all of its 374 tons of gold held in Paris. But convincing the Bundebsbank to demand delivery was peanuts compared to changing the tune of the Financial Times - that bastion of fiat "money", and where the word gold is mocked and ridiculed, and those who see the daily improprieties in the gold market as nothing but "conspiracy theorists" - to say the magic words: "Learn from Buba and demand delivery for true price of gold", adding that "one day the ties that bind this pixelated gold may break, with potentially catastrophic results."<br />
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In other words, precisely what we have been saying since the beginning.<br />
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Welcome to the 'conspiracy theorist' club, boys.<br />
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From the FT's Neil Collins: "<a href="http://www.ft.com/intl/cms/s/0/1586a7fe-84d6-11e3-a793-00144feab7de.html">Learn from Buba and demand delivery for true price of gold: One day the ties that bind the actual and the traded commodity will snap</a>:<br />
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<a href="http://www.zerohedge.com/news/2014-01-25/ft-goes-there-demand-physical-gold-one-day-paper-price-manipulation-will-end-catastr">READ MORE</a></div>
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<a href="http://www.bnn.ca/News/2014/1/17/Buy-physical-gold-and-avoid-paper-CME-Trader.aspx">Is there a shortage of physical gold?</a></h3>
Sultan Ameerali, BNN.ca staff<br />
1:18 PM, E.T. | January 17, 2014<br />
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With spot gold trading near $1,260 US, veteran trader Tres Knippa says investors should consider accumulating physical gold to take advantage of a delivery squeeze.<br />
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Pointing to recent Comex futures data, Knippa says there may not be enough gold to go around if everyone with a futures contract insists on taking delivery of physical bullion. He believes gold shot through $1,900 in 2011 before plunging last year because of an explosion in the amount of gold futures contracts – setting up separate markets for “real” and “paper” gold.<br />
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“Maybe the reason gold prices went up is an expansion of that multiple of the amount of paper gold versus real gold,” Knippa tells BNN. “So maybe the market has come back down as the people who are holding the paper gold start to liquidate it.”<br />
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“But the underlying story here is that the people acquiring physical gold appear to be continuing to do that. And that’s what I think is important,” Knippa adds, noting large investors like hedge fund manager Kyle Bass are taking delivery of the gold they're buying.<br />
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<a href="http://www.bnn.ca/News/2014/1/17/Buy-physical-gold-and-avoid-paper-CME-Trader.aspx">WATCH VIDEO</a></div>
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<a href="http://www.scribd.com/doc/201294033/TTMYGH-20-Jan-2014">Things That Make You Go Hmmm...Manipulation of Gold by Central Banks Cannot Continue in 2014</a></h3>
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By Grant Williams, 1/20/2014</div>
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<b>2013 was an absolutely seismic year for gold, but the way in which the tectonic plates shifted has yet to be fully understood.</b><br />
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I firmly believe that in the years to come, when we look back at the great game being played in gold, <b>we will pinpoint January 16, 2013, as the day when it all began to unravel.</b><br />
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That day, the day the Bundesbank blinked and demanded its bullion, will be shown to be the beginning of the end of the gold price suppression scheme by the world's central banks; and then gold will go on to trade much, much higher.<br />
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<a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/01/20140121_ttmygh1.png"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/01/20140121_ttmygh1_0.png" /></a><br />
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The evidence of suppression is everywhere, though most refuse to believe their elected officials are capable of such subterfuge. However, the recent numerous scandals in the financial world are slowly forcing people to realize that anything and everything can be manipulated.<br />
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Libor, mortgage rates, FX — all were shown to be rigged markets, but NONE of them have the importance that gold has at the centre of the financial universe, yet all of them are far bigger markets than gold and therefore much harder to rig.<br />
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<b>Gold is a manipulated market. Period.</b><br />
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2013 was the year that manipulation finally began to unravel.<br />
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2014? Well now, THIS could be the year that true price discovery begins in the gold market. If that turns out to be the case, it will be driven by a scramble to perfect ownership of physical gold; and to do that you will be forced to pay a lot more than $1247/oz.<br />
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Count on it...<br />
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<a href="http://www.scribd.com/doc/201294033/TTMYGH-20-Jan-2014">READ MORE</a></div>
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<a href="http://www.goldmoney.com/research/research-archive/precious-metals-in-2014">Precious Metals in 2014</a></h3>
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Alasdair Macleod, Posted 31 December 2013</div>
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Gold has become undervalued relative to fiat currencies such as the US dollar, as shown in the chart below, which rebases gold at 100 adjusted for both the increase in above-ground gold stocks and US dollar FMQ since the month before the Lehman Crisis.<br />
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<img src="http://www.goldmoney.com/images/media/Images/Articles/gold_adjusted_311213.png" /><br />
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Given the continuation of the statistically-concealed economic slump, plus the increased quantity of dollar-denominated debt, and therefore since the Lehman Crisis a growing probability of a currency collapse, there is a growing case to suggest that gold should be significantly higher in corrected terms today. Instead it stands at a discount of 36%.<br />
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This undervaluation is likely to lead to two important consequences. Firstly, when the tide for gold turns it should do so very strongly, with potentially catastrophic results for uncovered paper markets. The last time this happened to my knowledge was in September 1999, when central banks led by the Bank of England and the Fed rescued the London gold market, presumably by making bullion available to distressed banks. The scale of gold's current undervaluation and the degree to which available monetary gold has been depleted suggests that a similar rescue of the gold market cannot be mounted today.<br />
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The second consequence is to my knowledge not yet being considered at all. The speed with which fiat currencies could lose their purchasing power might be considerably more rapid than, say, the collapse of the German mark in 1920-23. The reason this may be so is that once the slide in confidence commences, there is little to slow its pace.<br />
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<a href="http://www.goldmoney.com/research/research-archive/precious-metals-in-2014">READ MORE</a></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-22658984352591187142014-01-25T21:08:00.000-05:002014-01-25T21:11:45.081-05:00Gold And Silver Manipulation “Conspiracy Theories” Are Becoming More Conspiracy Fact By The Day<div dir="ltr" style="text-align: left;" trbidi="on">
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<b>"It's easier to fool people than to convince them that they have been fooled." </b><br />
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- Mark Twain<br />
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If <a href="http://www.zerohedge.com/news/2014-01-03/physical-gold-demand-soared-gold-price-tumbled-2013">Physical Gold Demand Soared As Gold Price Tumbled In 2013 | Zero Hedge</a>, why did the "price" of Gold fall 28% over the course of the last year? The <a href="http://online.wsj.com/news/articles/SB10001424052702303640604579296920499160480?mod=WSJ_hpsMIDDLENexttoWhatsNewsSecond">WSJ reports</a> that demand for gold coins shot up 63% to 241.6 metric tons in the first three quarters of 2013.<blockquote class="tr_bq">
"Most people who buy physical gold aren't doing it for the same reason you'd purchase a stock," said Mike Getlin, vice president with Merit Financial, a bullion and coin dealership in Santa Monica, Calif. "They tend to have a much longer investment horizon. They tend to hold onto them forever and pride of ownership is a huge factor in that."</blockquote>
What do these buyers of Gold in a market falling in price know that the "mainstream" doesn't?<br />
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<a href="http://www.acting-man.com/?p=28033">The Mainstream Loves to Hate Gold</a></h3>
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In his famous essay on <a href="http://www.constitution.org/mon/greenspan_gold.htm">gold and economic freedom</a> published in 1966, Alan Greenspan stated that gold stands as a “protector of property rights”:<br />
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“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.</blockquote>
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This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”</blockquote>
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Many readers probably have come across this tidbit already, but for those who haven't, here is an interesting excerpt from an article published by the New York Times:<br />
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“Two years ago gold bugs ran wild as the price of gold rose nearly six times. But since cresting two years ago it has steadily declined, almost by half, putting the gold bugs in flight. The most recent advisory from a leading Wall Street firm suggests that the price will continue to drift downward, and may ultimately settle 40% below current levels.</blockquote>
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The rout says a lot about consumer confidence in the worldwide recovery. The sharply reduced rates of inflation combined with resurgence of other, more economically productive investments, such as stocks, real estate, and bank savings have combined to eliminate gold's allure. </blockquote>
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Although the American economy has reduced its rapid rate of recovery, it is still on a firm expansionary course. The fear that dominated two years ago has largely vanished, replaced by a recovery that has turned the gold speculators' dreams into a nightmare.”</blockquote>
This reads exactly like what much of the mainstream press has written about gold over the past several weeks. A more perfect reflection of the current conventional wisdom is hardly imaginable <a href="http://advisorperspectives.com/commentaries/euro_070113.php">as Peter Schiff has pointed out</a>.<br />
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There is only one problem – this article wasn't written today, or at anytime in the past few weeks. Rather, it appearedin the August 29, 1976 edition of The New York Times. Gold had just gone through a vicious correction, losing almost 50% of its value in a span of a little over 18 months. Unbeknown to the authors of the article, it had actually bottomed exactly four trading days before the article was published, and embarking on a rally that would eventually see it rise by nearly 800% from said low over the next three years.<br />
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The reason for mentioning this is not to assert that exactly the same thing is going to happen again these days – we don't know the future after all. It is merely meant to demonstrate how utterly misguided the conventional wisdom often is, especially in connection with financial assets. Every word of this article reflects today's conventional wisdom as much as it reflected the general opinion in 1976. If the NYT wants to publish an article about gold today, it actually doesn't even need to write anything new: it could simply copy/paste this 1976 article. No-one would notice.</div>
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<a href="http://www.acting-man.com/?p=28033">READ MORE</a><br />
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<a href="http://blogs.marketwatch.com/thetell/2014/01/15/how-low-will-gold-go-in-2014-consensus-forecast-says-down-14-5/">How low will gold go in 2014? Consensus forecast says down 14.5%</a></h3>
January 15, 2014<br />
<img src="http://s.wsj.net/public/resources/MWimages/MW-BS601_gold_t_MG_20140115110442.jpg" /><br />
Why will gold prices keep falling? A Bank of America Merrill Lynch strategist has said a <a href="http://blogs.marketwatch.com/thetell/2014/01/09/bank-of-america-merrill-lynch-slashes-gold-call-to-1150-and-warns-it-could-get-uglier/">lack of buyer interest</a> is his biggest worry. A stronger global economy, a continued tapering in the Federal Reserve’s bond buying and no sign of inflation could also pull interest away from gold, analysts say.</div>
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<a href="http://blogs.marketwatch.com/thetell/2014/01/15/how-low-will-gold-go-in-2014-consensus-forecast-says-down-14-5/">READ MORE</a></div>
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"There are a number of good reasons why so many love to hate gold. We rather suspect though that this tends to cloud their judgment. They certainly have no better handle on the future than we do, and their forecasts need to be taken with a big grain of salt. <b>Once there is such a broad consensus about a trend, the trend is usually close to reversing.</b>"<br />
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--Pater Tenebrarum in <a href="http://www.acting-man.com/?p=28033">The Mainstream Loves to Hate Gold</a> </div>
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<b>“Truth is like the sun. You can shut it out for a time, but it ain't going away.”</b><br />
― Elvis Presley</div>
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<a href="http://blog.milesfranklin.com/conspiracy-fact">Conspiracy Fact?</a></h3>
Author : Bill Holter </div>
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Published: January 22nd, 2014</div>
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I just recently wrote that “2 things will happen:”<br />
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1. It will be understood that the central banks have far less gold than they had claimed<br />
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2. The true “fractional reserve” nature of the paper gold markets will become common knowledge<br />
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I’d like to do a couple of things here, first use a little common sense to show that these will become “conspiracy fact” and then how might the “reaction” be.<br />
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“We” conspiracy nuts have long said that physical supply did not and could not meet the current physical demand for nearly 20 years now. We argued that WGC and GFMS demand numbers were always too low and that supply numbers to meet even their too low numbers were fudged with “scrap” used to plug the gap. We argued all along and much more fervently after many central banks turned into buyers that the ONLY places that the supply could have come from were the central banks (particularly the Fed). Using only 3rd grade common sense here, why is it do you suppose that Germany was told 1 year ago that they’d have to wait 8 years to get 20% of their gold back? Was it because as we were “told” that any undertaking “this large” would take many years…or maybe because the gold actually isn’t in the vault anymore? I would ask the question, how has China imported several thousand tons over the last couple of years yet we can’t move 300 tons unless it’s done of 8 years? Does China have “stronger boats” or “more powerful airplanes?” Or is the gold that we are shipping of the “heavier sort?” Yes I know, gold is gold but I never could get the answer correct whenever asked which is heavier, a pound of feathers or a pound of gold.</div>
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<a href="http://blog.milesfranklin.com/conspiracy-fact">READ MORE</a></div>
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<a href="http://www.kitco.com/ind/Lombardi/2014-01-23-Massive-Shock-Coming-to-the-Gold-Market-Soon.html">Massive Shock Coming to the Gold Market Soon?</a></h3>
By <a href="http://www.profitconfidential.com/author/michael-lombardi/">Michael Lombardi</a>, MBA<br />
<a href="http://www.profitconfidential.com/">Profit Confidential</a>.</div>
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Dear reader, the majority of “stuff” I read from analysts and economists these days says the 12-year run in gold bullion is over…the U.S. economy is getting better and gold has no reason to go back up. Hogwash, I say.<br />
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After a 12-year bull market in gold prices, the correction came in 2013. The depth of the correction caught many gold investors by surprise. And many investors have given up on gold’s future. It’s at that point, when the speculators have left the market, that a correction in an upward-moving market completes itself and the bull resumes. I’ve seen it happen countless times…it’s exactly what’s happening with the 12-year-old bull market in gold bullion.<br />
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A massive price shock is coming to the gold market…and it will be on the upside.</div>
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<a href="http://www.kitco.com/ind/Lombardi/2014-01-23-Massive-Shock-Coming-to-the-Gold-Market-Soon.html">READ MORE</a></div>
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<u><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/22_Historic_Short_Squeeze_To_Send_Gold_To_New_All-Time_Highs.html">Historic Short Squeeze To Send Gold To New All-Time Highs</a></u></h3>
Eric King, <a href="http://www.kingworldnews.com/kingworldnews/King_World_News.html">KingWorldNews.com</a> - January 22, 2014<br />
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On the heels of tremendous volatility in key global markets, today a 42-year market veteran spoke with King World News about exactly what is going to trigger a massive and historic short squeeze that will quickly send gold to new all-time highs. John Hathaway, who is one of the most respected institutional minds in the world today when it comes to gold, and whose fund was awarded a coveted 5-star rating, also discussed how this short squeeze will unfold, and what it will mean for investors.<br />
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Eric King: “Earlier in this interview you predicted a major short squeeze in the gold market. How do you see this short squeeze unfolding, John?”<br />
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Hathaway: “There are people who sold gold synthetically. A lot of that settlement will be made in cash. There are a lot of people who are short and you can see that in the CFTC numbers -- managed money accounts, managed futures, HFTs (high frequency traders), etc....<br />
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“But all of these shorts will need to get on side. Again, they can settle in cash, but what you see on the Comex is just a fraction of the shorts that are out there. Some of this is because of the opacity of London. <br />
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But once people begin to question the integrity of the intermediaries between the financial market and the bullion market, and those would be primarily Comex and even more importantly the London mechanism, those exchanges for dealing with gold will be bypassed. KWN has reported on the increase of gold that is no longer going through London. I think that is really going to hurt the leveraged trading of gold and create a demand for the real metal itself.<br />
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This demand for the real thing will be through exchanges like the one in Shanghai, where you have 100% physical gold backing all of the paper. There are a lot of ramifications from this. We have seen the Germans, after asking for their gold over a year ago, have only received 5 tons from the US. What’s that all about?<br />
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This all comes down to the integrity or the lack thereof in the connection between financial instruments, financial intermediaries, and physical gold. It seems to me that the potential is great for people to say, in sort of a moment of epiphany, ‘There is a difference. I don’t want to have unallocated gold accounts with my bank. I want to have the real thing. I don’t want to have gold in an ETF where I can’t get my hands on it.’<br />
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They will just want to have a form of liquidity, which is physical gold, that’s not in the banking system. The banking system is becoming increasingly oppressive, onerous, and intrusive. So I think we are in the very early days of recognition that banks are instruments of government policy.<br />
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/22_Historic_Short_Squeeze_To_Send_Gold_To_New_All-Time_Highs.html">READ MORE</a></div>
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<a href="http://www.zerohedge.com/contributed/2014-01-17/watch-out-bull-market-ahead-seven-key-gold-charts">Watch Out, "Bull Market Ahead" - Seven Key Gold Charts</a></h3>
Submitted by <a href="http://www.zerohedge.com/users/goldcore">GoldCore</a> on 01/17/2014</div>
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Gold and silver manipulation “conspiracy theories” are becoming more conspiracy fact by the day.<br />
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Often “a picture paints a thousand words” and the seven key gold charts below should make gold bears nervous. The charts were compiled by Nick Laird of<a href="http://www.sharelynx.com/">www.ShareLynx.com</a> and emailed to us Wednesday night. Sharelynx.com is a great website for charts and well worth the subscription. <br />
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The seven gold charts suggest that there is a “bull market ahead”, as Nick says. Again, we may see some further weakness in the short term but the outlook is good for 2014 and the coming years.<br />
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So without further ado, lets look at these important gold charts.<br />
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<strong style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.333332061767578px;">Gold Chart 1 - The banks are long gold ...</strong><br />
<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart1_17-01-14.png" style="background-color: white; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.333332061767578px; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart1_17-01-14.png" height="381" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.333332061767578px;">Gold Chart 2 - Gold stocks are being withdrawn ...</strong><br />
<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart2_17-01-14.png" style="background-color: white; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.333332061767578px; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart2_17-01-14.png" height="341" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong><span style="font-size: 1em; line-height: 1.3em;">Gold Chart 3 - Supplies are being held back ...</span></strong></div>
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<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart3_17-01-14.png" style="color: #666666; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart3_17-01-14.png" height="341" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong><span style="font-size: 1em; line-height: 1.3em;">Gold Chart 4 - COT Data shows that banks and others are positioned perfectly for a bull run to start ... </span></strong></div>
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<strong><span style="font-size: 1em; line-height: 1.3em;"> </span></strong><a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_17-01-14.png" style="color: black; font-size: 1em; line-height: 1.3em;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_17-01-14.png" height="435" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong>Gold Chart 5 - Pivot point time - double bottom ...</strong><br />
<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart10_17-01-14.png" style="color: #666666; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart10_17-01-14.png" height="310" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong><span style="font-size: 1em; line-height: 1.3em;">Gold Chart 6 - Never been a better buy …</span></strong></div>
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<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart5_17-01-14.png" style="color: #666666; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart5_17-01-14.png" height="326" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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<strong>Gold Chart 7 - Just bounced off one of it's most oversold phases ...</strong></div>
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<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart6_17-01-14.png" style="color: #666666; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart6_17-01-14.png" height="341" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a></div>
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Sentiment is as bad as we have seen it in the precious metals market. As the charts show, such sentiment, price action and oversold conditions tend to coincide with major lows in gold and silver prices and multi month price gains. </div>
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Very poor sentiment towards gold and oversold conditions is reminiscent of the conditions seen in late 2008 and January 2009 when gold prices had fallen by more than 25% in 9 months.</div>
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<a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart11_17-01-14.png" style="color: #666666; text-decoration: none;"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart11_17-01-14.png" height="219" style="border: 0px; height: auto; max-width: 100%;" width="450" /></a><br />
<span id="1389964900675S"> </span>Gold in US Dollars - 6 Years</div>
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Subsequently, gold rose from a low on January 15, 2009 at $802.60/oz to a high less than 12 months later at $1,215/oz for a gain of over 50%. <b>A similar move today would see gold above $1,800/oz by year end.</b></div>
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We believe similar gains may be seen in the coming months and years. Investors should position themselves accordingly.</div>
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<a href="http://www.zerohedge.com/contributed/2014-01-17/watch-out-bull-market-ahead-seven-key-gold-charts">READ MORE</a></div>
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<a href="http://www.zerohedge.com/contributed/2014-01-22/what-inflation-adjusted-all-time-high-gold-would-look">What an Inflation-Adjusted All Time High in Gold Would Look Like</a></h1>
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Submitted by <a href="http://www.zerohedge.com/users/phoenix-capital-research">Phoenix Capital Research</a> on 01/22/2014<br />
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Gold has been in a bear market for some two years now. As a result of this, many investors believe that the precious metal is no longer a viable investment.<br />
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No investment ever goes straight up or straight down. During the last bull market in gold, the precious metal rose 2,329% from a low of $35 in 1970 to a high of $850 in 1980. However, during that time, there was a period of 18 months in which gold fell nearly 50% (see the chart below)<br />
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<img src="http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2014/01/gold%2070.jpg" /></div>
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As you can see, from mid-1971 to December 1974, gold rose 471%. It then fell 50%, from December ’74 to August ’76. After that, it began its next leg up, exploding 750% higher from August ’76 to January 1980.<br />
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With that in mind, I believe the next leg up in Gold could very well be the BIG one. Indeed, based on the US Federal Reserve’s money printing alone Gold should be at $1800 per ounce today.<br />
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<b>Moreover, at $1,800, Gold is Still Nowhere Near Its All-Time High</b><br />
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<a href="http://www.zerohedge.com/contributed/2014-01-22/what-inflation-adjusted-all-time-high-gold-would-look">READ MORE</a></div>
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So I ask again...</div>
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<b>What do these buyers of Gold in a market falling in price know that the "mainstream" doesn't?</b></div>
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<b><span style="font-size: large;">THE TRUTH!</span></b></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-80476121762896852992014-01-21T21:25:00.000-05:002014-01-21T21:25:35.146-05:00Precious Metals Manipulation At Risk Of Failure As Physical Supplies Running Out<div dir="ltr" style="text-align: left;" trbidi="on">
The manipulation of the gold market by the U.S. Government and the Federal Reserve has been going on for decades. If you are reading this, you are most likely very aware of this <strike>suspicion</strike> fact. Others who have aided and abetted the Federal Reserve and the U.S. Government over the years, and are the<strike> suspected</strike> accomplices in this Global Fraud are JP Morgan, Goldman Sachs, Barclays Plc , Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA.<div>
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I prefer to think of this "manipulation of the gold market" as a coordinated effort to "suppress" the "price" of Gold. For if this were a real "manipulation" of the Gold Market, how could the manipulators run out of Gold? The manipulators stopped selling "physical" Gold months ago, and resorted to selling Gold which they <strike>didn't own</strike> doesn't exist to maintain the "false impression" of a weak Gold Market based solely on a sliding "price" over the past two years.</div>
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How could the "price" of Gold be falling <a href="http://www.financialsense.com/contributors/steve-angelo/great-gold-heist-2013">if demand is at all-time highs</a>? With the illusion of unlimited Gold to sell in the "Gold <i>Futures</i> Market", created by selling non existing Gold, the above mentioned banking entities, along with the blessings of the U.S. Government have created the largest "reverse bubble" the financial markets have ever witnessed.</div>
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Reverse Bubble? Yes! Rising demand for Gold as the price has been artificially driven down has created a scenario for one of the greatest short squeezes of ALL-TIME.</div>
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Join me as I connect the dots to The Beginning Of The End Of The Global Gold "Price" Manipulation.</div>
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<b><a href="http://www.bloomberg.com/news/2014-01-16/metals-currency-rigging-worse-than-libor-bafin-s-koenig-says.html">Metals, Currency Rigging Is Worse Than Libor, Bafin Says</a></b><span class="author" itemprop="author" style="background-color: white; box-sizing: border-box; color: #444444; display: inline-block; font-family: akzidenz-grotesk-std-bloom; font-size: 14px; line-height: 21.599998474121094px; width: auto;">By Karin Matussek and Oliver Suess</span><span style="background-color: white; color: #444444; font-family: akzidenz-grotesk-std-bloom; font-size: 14px; line-height: 21.599998474121094px;"> </span><span class="divider" style="background-color: #d6d6d6; box-sizing: border-box; color: #444444; display: inline-block; font-family: akzidenz-grotesk-std-bloom; font-size: 14px; height: 8px; line-height: 21.599998474121094px; margin: 0px 4px; width: 1px;"></span><span style="background-color: white; color: #444444; font-family: akzidenz-grotesk-std-bloom; font-size: 14px; line-height: 21.599998474121094px;"> </span><span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="date" epoch="1389960712000" style="background-color: white; box-sizing: border-box; color: #444444; display: inline-block; font-family: akzidenz-grotesk-std-bloom; font-size: 14px; line-height: 21.599998474121094px; width: auto;">Jan 17, 2014 7:11 AM ET</span></h3>
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<a href="http://topics.bloomberg.com/germany/">Germany</a>’s top financial regulator said possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal, which has already led to fines of about $6 billion.<br />
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The allegations about the currency and precious metals markets are “particularly serious because such reference values are based -- unlike Libor and Euribor -- typically on transactions in liquid markets and not on estimates of the banks,” Elke Koenig, the president of Bonn-based Bafin, said in a speech in <a href="http://topics.bloomberg.com/frankfurt/">Frankfurt</a>yesterday.<br />
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Koenig is the first global finance regulator to comment publicly on the investigations as probes into the London interbank offered rate, or Libor, expand into other benchmarks. <a href="http://topics.bloomberg.com/joaquin-almunia/">Joaquin Almunia</a>, the European Union’s antitrust chief, said this week that its preliminary probe into possible foreign-exchange manipulation covers similar practices as in the regulator’s probe into Libor-rigging.<br />
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Investors should short <a href="http://www.bloomberg.com/quote/DBK:GR">Deutsche Bank AG (DBK)</a> stock because of probes into currency manipulation and as a rally in banking shares reverses, Berenberg Bank said in a report today. “The investigations by regulators into the bank’s foreign-exchange trading remain a significant risk considering Deutsche is the world’s largest foreign-exchange dealer,” Berenberg said.<br />
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<b style="color: black; font-family: Arial, sans-serif; font-size: 14px; line-height: 17.913999557495117px;">"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. <u>The US Fed was very active in getting the gold price down</u>. So was the U.K."</b><span style="color: black; font-family: Arial, sans-serif; font-size: 14px; line-height: 17.913999557495117px;"> - Eddie George, then Governor of the Bank of England, 1999</span></blockquote>
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<a href="http://www.paulcraigroberts.org/2014/01/17/hows-whys-gold-price-manipulation/">The Hows and Whys of Gold Price Manipulation</a></h3>
January 17, 2014<br />
By Paul Craig Roberts and Dave Kranzler</div>
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The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused by the financial crisis.<br />
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The Fed’s policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar’s exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold.<br />
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The evidence of gold price manipulation is clear. In this article we present evidence and describe the process. We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply.<br />
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<a href="http://usawatchdog.com/fed-they-do-not-have-any-more-gold-paul-craig-roberts/">Fed-They Do Not Have Any More Gold-Paul Craig Roberts</a></h3>
By <a href="http://usawatchdog.com/author/greg-hunter/">Greg Hunter</a> On January 21, 2014...<a href="http://usawatchdog.com/fed-they-do-not-have-any-more-gold-paul-craig-roberts/Fed-They%20Do%20Not%20Have%20Any%20More%20Gold-Paul%20Craig%20Roberts">USAWatchdog.com</a></div>
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Former Assistant Treasury Secretary Paul Craig Roberts is making some bold new claims about the Federal Reserve and its official government gold holdings. Dr. Roberts contends,“They don’t have any more gold. That’s why they can only give Germany 5 tons of the 1,500 tons it’s holding. In fact, when Germany asked for this delivery last year, the Fed said no. But it said we will give you back 300 tons . . . . So, they said we will give you back 20% of what you trusted us to keep for you over the next seven years, but they are not even able to do that.” Dr. Roberts goes on to say, “The stocks of gold at the Bank of England seem to be disappearing. The stocks of many of the gold trusts, such as GLD, are being looted . . . all of this gold is disappearing into Asian markets. The entire West is being drained of gold.” According to Dr. Roberts, this is an inflection point for the gold market. Dr. Roberts says, “The reason is: the ability to supply large amounts of gold to the bullion dealers to sell has diminished with the supply of gold and silver. What the Fed did was turn to massive ‘naked shorts’ of gold futures contracts. They don’t have the real gold . . . so they come in and dump contracts, say in a period of 6 minutes, that are three times the amount of gold COMEX has to make delivery. . . . So, it drives down the price of gold. That’s how they got the price down from $1,900 to $1,250.” <br />
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<a href="http://usawatchdog.com/fed-they-do-not-have-any-more-gold-paul-craig-roberts/Fed-They%20Do%20Not%20Have%20Any%20More%20Gold-Paul%20Craig%20Roberts"> </a><br />
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<a href="http://www.bbc.co.uk/news/business-25804157#story_continues_1">Deutsche Bank reports surprise loss as legal costs mount</a></h3>
19 January 2014<br />
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Deutsche Bank has reported a surprise loss for the fourth quarter of 2013, after releasing its <a href="https://www.db.com/ir/en/content/ir_releases_2013_4436.htm">latest results </a>before they were expected.<br />
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Overall Deutsche said it posted a pre-tax loss of 1.153bn euros for the final quarter of 2013.<br />
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The bank said that litigation costs and restructuring had weighed heavily on its financial performance.<br />
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Also in December it was among six banks fined $2.3bn (£1.4bn) by the European Commission after been found guilty of colluding to rig two global interest rate benchmarks.<br />
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Deutsche Bank suffered the largest fine of the six - 725.36m euros - over rate fixing.<br />
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For the year, it has set aside 2.5bn euros for various lawsuits.</div>
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<a href="http://www.foxbusiness.com/industries/2014/01/17/deutsche-bank-to-withdraw-from-gold-fix-amid-probe/">Deutsche Bank To Withdraw From Gold Fix Amid Probe</a></h3>
Published January 17, 2014<br />
Reuters<br />
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Deutsche Bank will withdraw from gold and silver benchmark setting, or fixing, amid an investigation by German regulators into suspected manipulation of precious metals prices by banks.<br />
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Deutsche, one of five banks involved in the twice-daily gold fix for global price setting, said it was dropping out of the process after withdrawing from the bulk of its commodities business.<br />
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"Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business," the bank said in a statement on Friday.<br />
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"We remain fully committed to our precious metals business."<br />
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In mid-December, German banking regulator Bafin demanded documents from Deutsche Bank as part of a probe into suspected manipulation of benchmark gold and silver prices by banks, the Financial Times reported, citing sources.<br />
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<a href="http://www.fastmarkets.com/gold-news/69679-0-en">Shortage of large gold bars leads to rare London premiums</a></h3>
Posted on <a href="http://www.fastmarkets.com/gold-news/69679-0-en">January 15, 2014</a> by <a href="http://www.fastmarkets.com/author/eddie-vanderwalt">Eddie van der Walt</a><br />
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London 15/01/2014 – The London bullion market has seen intermittent shortages of 400-ounce bars, traders in the City told FastMarkets, pushing premiums for physical delivery for these large bars as high as 50 cents.<br />
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This shortage may have been driven by several factors, including a scramble for physical delivered material after the end of the year and reduced availability due to good delivery bars flowing from London to the Far East, they suggested.<br />
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“There is a shortage of big bars, especially good-delivery 400-ounce bars,” Bernard Dahdah at Natixis said. “One part of the problem is that large quantities of these bars that have come from ETFs, have now been moved to be re-refined into three-nines bars of smaller sizes and are therefore no longer available to the London market.”</div>
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<a href="http://www.zerohedge.com/news/2014-01-19/germany-has-recovered-paltry-5-tons-gold-ny-fed-after-one-year">Germany Has Recovered A Paltry 5 Tons Of Gold From The NY Fed After One Year</a></h3>
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<span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.333332061767578px;">Submitted by </span><a href="http://www.zerohedge.com/users/tyler-durden" style="background-color: white; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.333332061767578px; text-decoration: none;">Tyler Durden</a><span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.333332061767578px;"> on 01/19/2014</span></div>
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On December 24, <a href="http://www.zerohedge.com/news/2013-12-24/year-later-bundesbank-has-repatriated-only-37-tons-gold-700-total">we posted an update </a>on Germany's gold repatriation process: a year <a href="http://www.zerohedge.com/news/2013-01-16/bundesbank-official-statement-gold-repatriation">after the Bundesbank announced </a>its stunning decision, driven by <a href="http://www.zerohedge.com/news/2012-11-09/exclusive-bank-england-fed-no-indication-should-course-be-given-bundesbank">Zero Hedge revelations</a>, to repatriate 674 tons of gold from the New York Fed and the French Central Bank, it had managed to transfer a paltry 37 tons. This amount represents just 5% of the stated target, and was well below the 84 tons that the Bundesbank would need to transport each year to collect the 674 tons ratably over the 8 year interval between 2013 and 2020. The release of these numbers promptly angered Germans, and led to the rise of numerous allegations that the reason why the transfer is taking so long is that the gold simply is not in the possession of the offshore custodians, having been leased, or worse, sold without any formal or informal announcement. However, what will certainly not help mute "conspiracy theorists" is today's update from <a href="http://www.welt.de/wirtschaft/article123988843/Die-ganze-Wahrheit-ueber-das-Gold-der-Bundesbank.html">today's edition of Die Welt</a>, in which we learn that only a tiny 5 tons of gold were sent from the NY Fed. The rest came from Paris.<br />
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As <a href="http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.welt.de%2Fwirtschaft%2Farticle123988843%2FDie-ganze-Wahrheit-ueber-das-Gold-der-Bundesbank.html">Welt states</a>, "Konnten die Amerikaner nicht mehr liefern, weil sie die bei der Federal Reserve of New York eingelagerten gut 1500 Tonnen längst verscherbelt haben?" Or, in English, did the US sell Germany's gold? Maybe. The official explanation was as follows:<br />
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<a href="http://www.zerohedge.com/news/2014-01-19/germany-has-recovered-paltry-5-tons-gold-ny-fed-after-one-year">READ MORE</a></div>
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<a href="http://www.video.theblaze.com/media/video.jsp?content_id=31293951">What Really happened To The German Gold Housed In The United States?</a></h3>
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The BlazeTV, Glen Beck</div>
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<a href="http://www.bloomberg.com/news/2014-01-21/century-old-london-gold-fix-said-to-face-overhaul-amid-scrutiny.html">Century-Old London Gold Fix Said to Face Overhaul Amid Scrutiny</a></h3>
By Suzi Ring, Liam Vaughan and Nicholas Larkin Jan 21, 2014</div>
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Banks are considering an overhaul of<a href="http://topics.bloomberg.com/london/">London</a>’s century-old gold benchmark used by miners, jewelers and central banks to buy, sell and value the precious metal, according to a person with knowledge of the process.<br /><br />The five banks that oversee the so-called London gold fixing -- <a href="http://www.bloomberg.com/quote/BARC:LN">Barclays Plc (BARC)</a>, <a href="http://www.bloomberg.com/quote/DBK:GR">Deutsche Bank AG (DBK)</a>, Bank of Nova Scotia, <a href="http://www.bloomberg.com/quote/HSBA:LN">HSBC Holdings Plc (HSBA)</a> and <a href="http://www.bloomberg.com/quote/GLE:FP">Societe Generale SA (GLE)</a> -- have formed a steering committee that’s seeking external firms to advise how the process could be improved, according to the person, who asked not to be identified because the review isn’t public.<br /><br />The fixing is a rate-setting ritual dating back to 1919. Representatives of the five member banks spend from a few minutes to more than an hour on the telephone discussing buying and selling gold. The method has faced scrutiny in recent months, with regulators in London, Bonn and<a href="http://topics.bloomberg.com/washington/">Washington</a> -- who are already looking into manipulation of interest rates and currencies -- investigating how prices are set in the market.</div>
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<a href="http://www.bloomberg.com/news/2014-01-21/century-old-london-gold-fix-said-to-face-overhaul-amid-scrutiny.html">READ MORE</a></div>
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<a href="http://www.24hgold.com/english/news-gold-silver-comex-gold-stocks-at-record-lows-as-sge-volumes-surge-61-.aspx?article=5108469762H11690&redirect=false&contributor=Mark+O%27Byrne">COMEX Gold Stocks At Record Lows As SGE Volumes Surge 61%</a></h3>
Technically, gold is looking sounder. Support is at $1,220, $1,200 and of course what appears to be a double bottom at $1,180/oz. A close above $1,270 could see gold quickly move to test resistance at $1,300 and $1,330.<br /><br />The supply demand fundamentals of the gold market remain sound with the flow of gold from West to East.<br /><br />COMEX gold stocks have fallen to new record lows (see chart) showing demand for physical bullion remains very robust. Indeed, the scale of the fall in COMEX gold stocks since 2007 and which accelerated in early April 2013 is important to note.<div>
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<a href="http://www.24hgold.com/english/news-gold-silver-comex-gold-stocks-at-record-lows-as-sge-volumes-surge-61-.aspx?article=5108469762H11690&redirect=false&contributor=Mark+O%27Byrne">READ MORE</a></div>
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<a href="http://www.zerohedge.com/contributed/2014-01-20/gold-should-be-1800-based-fed-balance-sheet-alone">Gold Should be at $1800 Based on the Fed Balance Sheet Alone</a></h3>
Submitted by <a href="http://www.zerohedge.com/users/phoenix-capital-research">Phoenix Capital Research</a> on 01/20/2014<div>
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Since the Crash hit in 2008, the price of Gold has been very closely correlated to the Fed’s balance sheet expansion. Put another way, the more money the Fed printed, the higher the price of Gold went.<br /><br />Gold did become overextended relative to the Fed’s balance sheet in 2011 when it entered a bubble with Silver. However, with the Fed now printing some $85 billion per month, the precious metal is now significantly undervalued relative to the Fed’s balance sheet.<br /><br />Indeed, for Gold to even realign based on the Fed’s actions, it would need to be north of $1,800. That’s a full 30% higher than where it trades today (see below).<div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-56765512484017144882013-04-16T19:57:00.001-05:002013-04-16T19:57:10.439-05:00Never Look A Gift Horse In The Mouth...Buy Gold And Silver Now--While Supplies Last!<div dir="ltr" style="text-align: left;" trbidi="on">
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"...<span style="-webkit-text-size-adjust: none; background-color: white; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-size: 18px; font-style: italic; font-weight: bold; line-height: 22px;">for people who have put some cash aside you are looking at opportunities being served to you on a golden platter.”</span><br />
<span style="-webkit-text-size-adjust: none; background-color: white; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-size: 18px; font-style: italic; font-weight: bold; line-height: 22px;"> -</span><span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Pierre Lassonde</span><br />
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<span style="background-color: white; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; line-height: 14px;"><b>"'Friday was a 4.88 standard deviation move in the price of gold. For simplicity's sake let's call it a five standard deviation move. Statistically we get a five standard deviation move approximately once every 4,776 years. So we should not expect another move like this out of the price of gold until May 17, 6789. ... Currently the two-day price change in GLD is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let's just say the sun is expected to burn out first.'"</b></span><br />
<span style="background-color: white; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; line-height: 14px;"> -</span><span style="background-color: white; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; line-height: 14px;"> </span><span style="background-color: white; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; line-height: 14px;">Russell Rhoads, CFA of the CBOE Option Institute</span><br />
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The Price Smash – Who, What, How and Why?</h2>
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April 16, 2013 - 1:19pm</div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;">There is no doubt that we are at a critical juncture in gold and silver and the first order of business is to drill down to how and why prices plunged so much Friday and Monday. Certainly, more commentary (mostly on gold) is being written about the precious metals currently in regards to the price weakness than I can remember. Unfortunately, much of the analyses and commentary is wide of the mark, in my opinion. But the great thing is that everyone interested in what just took place with gold and silver prices can decide for themselves from the multitude of opinions offered as to what makes the most sense.</span></div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;">For me, explaining what took place is easy, since the price plunge occurred in the confines of how I analyze gold and silver. First, what exactly did happen? Basically, a neutron price bomb was detonated in certain NYMEX/COMEX markets that selectively targeted gold, silver, copper, platinum, palladium and crude oil prices. On just about every other market, like stocks, bonds, currencies, grains, meats, soft commodities yesterday was non-eventful pricewise. The importance of this distinction that only selected markets experienced unusual price weakness is that it eliminates many general knee-jerk explanations about prices being impacted by broad macroeconomic factors. How could broad economic factors influence certain commodities and not the stock or currency markets? Looking deeper, the commodities experiencing price weakness all have different supply/demand fundamentals relative to one another, so as to eliminate the possibility that all those unique fundamentals changed yesterday in synch. Commodity fundamentals change glacially; it’s impossible for the supply/demand equation of many various commodities to change overnight.</span></div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;">So, if it wasn’t abrupt change in the fundamental story in the various separate markets that were hit to the downside yesterday, then what the heck accounted for the steep declines in price? Stated differently, what was the common denominator present in the markets that plunged? The most visible common denominator was that the various big price declines occurred on the NYMEX/COMEX markets owned and run by the CME Group. But the most important common denominator was the nature of the buyers and sellers across all the markets that got smashed. Without exception, in any market that declined significantly, the big net buyers were the traders classified as commercials and the big net sellers were those traders classified as non-commercials, largely technical trading funds. Not only was this true yesterday, it has been true on every single big price decline throughout history, according to US Government data (COT reports).</span></div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;">This may seem elemental, but I ask you to contemplate this anew. In the highly-charged emotional state of significant price declines, it is tempting to accept fabricated stories as to what may be the cause of the declines. Because of that, it is more important than ever to rely on the known facts and only that which can be substantiated. COT data have and will show without question that the commercials are always the big buyers and the technical funds are always the big sellers and there was no exception this time. Once you know who the big buyers and sellers are (which is the beauty of the COT), only then can you proceed to the how and why of the big price declines.</span></div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;">Armed with the certain knowledge that in every market that declined substantially the big buyers were the commercials with the big sellers as the technical funds, how and why fall into place. Why is real easy – in order to make money. The way one makes money is by buying low and selling high, although not necessarily in that order. For instance, JPMorgan the big concentrated short seller and manipulator of silver and other markets, has made a boatload of money, many hundreds of millions of dollars, by short selling at higher prices than the prices they have been buying back at. I don’t begrudge JPMorgan for making large trading profits if they were doing so legally, but that is not the case. The trading profits being made by JPMorgan and the other commercials are as far from legal as is possible. That’s the only plausible conclusion a reasonable person could reach when answering the last open question – how do they do it?</span></div>
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<span style="color: black; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 14px; margin: 0px; padding: 0px;"><a href="http://www.silverseek.com/commentary/price-smash-%E2%80%93-who-what-how-and-why-10991">READ MORE</a></span></div>
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<h3 class="storytitle" style="background-color: white; background-image: url(http://www.theburningplatform.com/wp-content/themes/organic-theme/img/storytitle-bg.gif); background-position: 0% 0%; background-repeat: no-repeat no-repeat; border: 0px; color: #4a6f8b; float: left; font-family: Arial, helvetica, 'sans serif'; font-size: 24px; line-height: 1.2em; margin: 0px; outline: 0px; padding: 0px 0px 5px 35px; text-shadow: rgb(175, 193, 201) 0px 1px 0px; width: 440px;">
<a href="http://www.theburningplatform.com/?p=52558" rel="bookmark" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; text-shadow: rgb(231, 231, 229) 0px 1px 0px;">HOW JP MORGAN & THEIR CO-CONSPIRATORS ENGINEERED THE GOLD CRASH & WHY</a></h3>
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Posted on 14th April 2013 by Administrator in <a href="http://www.theburningplatform.com/?cat=3" rel="category" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" title="View all posts in Economy">Economy</a> |<a href="http://www.theburningplatform.com/?cat=4" rel="category" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" title="View all posts in Politics">Politics</a> |<a href="http://www.theburningplatform.com/?cat=5" rel="category" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" title="View all posts in Social Issues">Social Issues</a></div>
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<a href="http://www.theburningplatform.com/?tag=bernanke" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Bernanke</a>, <a href="http://www.theburningplatform.com/?tag=bill-downey" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Bill Downey</a>, <a href="http://www.theburningplatform.com/?tag=crash" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Crash</a>, <a href="http://www.theburningplatform.com/?tag=gold" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Gold</a>, <a href="http://www.theburningplatform.com/?tag=jp-morgan" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">JP Morgan</a>, <a href="http://www.theburningplatform.com/?tag=manipulation" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">manipulation</a>, <a href="http://www.theburningplatform.com/?tag=qe" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">QE</a>, <a href="http://www.theburningplatform.com/?tag=silver" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">silver</a>, <a href="http://www.theburningplatform.com/?tag=wall-street" rel="tag" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Wall Street</a></div>
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<strong style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px;">Things are not as they appear. Those in control are panicked. They are flailing about attempting to give the appearance of normalcy. Anyone with a functioning brain can see the wheels are coming off this bus and we’re headed for a fatal crash. JP Morgan and the rest of the Wall Street cabal are growing desperate, as their physical supply of gold and silver has rapidly dissipated. They needed to cover-up their impending financial implosion with an engineered crash in metals prices. Bill Downey tells the story you won’t hear on CNBC or any other corporate controlled MSM outlet. Understanding how and why this is being done, is crucial to seeing where we go from here. The bus ride is about to get really interesting. </strong></div>
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12 Apr 2013 2:12 PM | <a href="http://goldtrends.net/Content/Members/MemberPublicProfile.aspx?memberId=4927543" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">Bill Downey</a> (Administrator)</h5>
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<b><span style="border: 0px; font-family: inherit; font-size: large; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;">How the Gold Market was Crashed</span></b></div>
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There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.</div>
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HOUSTON — we have a problem.</div>
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Physical inventory drawdown at JPM</div>
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Charts by Nick Laird of <a href="http://www.sharelynx.com/" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Nick Laird's charts at sharelynx">www.sharelynx.com</a><br />
<img alt="" height="390" src="http://goldtrends.net/Resources/Pictures/2013/April/Gold/GoldInventoryJPMAPril2013.gif" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px;" width="564" /></div>
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Physical Drawdown at COMEX</div>
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Charts by Nick Laird of <a href="http://www.sharelynx.com/" style="border: 0px; color: #4a6f8b; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Nick Laird's charts at sharelynx">www.sharelynx.com</a></div>
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<img alt="" height="407" src="http://goldtrends.net/Resources/Pictures/2013/April/Gold/GoldInventoryComexApr2013.gif" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px;" width="593" /></div>
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You can imagine the dilemma this is causing for the market interests behind these inventories. If the inventory runs out and one cannot meet deliveries then it has to be bought on the open market. Not only that but it could cause a run up in prices that would hurt the shorts in the market.</div>
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So what to do?</div>
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There is only one way out of this for the market controllers would be to devise a plan that would collapse the market and trip up all the stops at the correction lows in gold of 1525 thereby setting off the stop loss orders under this important market low. And what if the plan included a way to stop the physical market from purchasing gold under 1525 while that correction was underway?</div>
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And how can that happen?</div>
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They have to hatch out a plan and carefully orchestrate it in a series of events that takes the gold market by surprise and force the players out of their positions.<br />
Read on for today’s lesson in market manipulation and allow me to relay my speculation about what transpired last week.</div>
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<a href="http://www.theburningplatform.com/?p=52558">READ MORE</a></div>
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ALL US WHOLESALERS SOLD OUT OF ALL PHYSICAL SILVER!!!</h1>
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<span class="date published time" style="background-image: url(http://silverdoctors.com/wp-content/themes/enterprise/images/icon-time.png); background-position: 0% 0%; background-repeat: no-repeat no-repeat; margin: 0px 0px 0px 3px; padding: 3px 0px 2px 22px;" title="2013-04-15T20:19:19+00:00">APRIL 15, 2013</span> BY <span class="author vcard"><span class="fn"><a class="fn n" href="http://silverdoctors.com/members/the-doc/profile/" rel="author" style="color: #008dcf; text-decoration: none;" title="The Doc">THE DOC</a></span></span> </div>
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<strong><span style="color: red;">*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES! SDBullion.com has closed due to lack of ANY AVAILABLE SILVER!</span></strong></div>
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<strong>Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!!</strong><span id="more-25111"></span><br />
<strong>AND……IT’S GONE!!!!!</strong></div>
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<strong>In the face of an EPIC TSUNAMI of gold and silver sales today as the cartel hammered the price of silver down over 12%, and off $6 from Friday’s open, we have just been informed at SDBullion upon trying to place a large inventory order that<span style="color: red;"> BOTH AMARK & CNT ARE SOLD OUT OF EVERY LAST OUNCE OF PHYSICAL SILVER!!!</span></strong></div>
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<strong>Apparently the fact that one of the largest wholesale suppliers in the US is SOLD OUT, while simultaneously<a href="http://silverdoctors.com/10-of-us-annual-silver-supply-just-vaporized/" style="color: #008dcf; text-decoration: none;"> the 2nd largest silver mine in the US is offline perhaps permanently</a> is of absolutely no consequence to the paper dumping cartel bullion banks.</strong></div>
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<strong>Bullion bank silver shorts are most likely covering in mass RIGHT NOW, and we’ll soon have the data to make the case. Many have speculated that the bullion banks are going to switch to a net long position. There couldn’t be a better time to do just that given that at $22/oz, pretty much all existing shorts taken out before this week will be in the money.</strong></div>
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<strong><a href="http://silverdoctors.com/cnt-sold-out-of-all-physical-silver/">READ MORE</a></strong></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 30px; font-weight: bold; line-height: 36px; text-decoration: underline;">Bullion Shortages Develop As Retail Demand Skyrockets</span></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Amazingly, on Saturday 41-year market veteran Bill Haynes warned King World News that we were already on the verge of seeing major shortages of available retail bullion products. Well, there are already massive shortages of bullion products. Haynes also updates KWN readers globally on the stunning margin which gold and silver buyers are outpacing sellers. Below is what Haynes had to say in this extraordinary interview.</span></div>
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<span class="style" style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px; opacity: 1;">Haynes: </span><span style="-webkit-text-size-adjust: none; color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-size: 18px; font-style: italic; font-weight: bold; line-height: 22px;">“Eric, on Monday there was such chaos in the markets that some of the larger wholesale dealers had to shut down at various times because of the massive demand on the buy side. These wholesalers simply had to quit taking orders not only because of the demand, but also because of the enormous price volatility.... </span></div>
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<a href="http://blog.milesfranklin.com/price-and-availability-revisited" rel="bookmark" style="color: black; margin: 0px; padding: 0px; text-decoration: none;" title="Permanent link to Price and Availability – Revisited">Price and Availability – Revisited</a></h2>
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Author : Bill Holter<br />
Published: April 16th, 2013</div>
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It looks like the CME has “changed” their open interest numbers since posted this morning. I saw the numbers with my own eyes this morning which showed an open interest gain of over 10,000 contracts for gold and over 3,500 for silver. If the “new numbers” are correct, there is still more open interest in gold than there was Thursday’s close and only a drop of 2,000 in silver. Still not anywhere near the amounts one would think that was necessary to create the price drops we’ve seen. I know that these numbers were displayed earlier because I have since read commentary similar to mine that had the same figures… I do believe my lying eyes and am not senile yet. I know what I saw and even checked the date to make sure that they were yesterday’s numbers. Who knows, maybe the real numbers were too unbelievable and even a shlep like me saw what happened so they changed them… crazy world we live in!</div>
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When there are more buyers than sellers… the “price” goes up, when there are more sellers than buyers… the “price” goes down… right? This is the way it works? Or is supposed to? As you know, we live in a world where nearly everything real has 2 markets, the paper market and the physical market. Originally the paper markets were created so that farmers could “hedge” their crop and outright buyers or speculators could have access to the commodity. This has morphed into a situation where the paper markets have outsized the real physical markets and become more important to “price.” It is a “Wag the Dog” scenario where in gold for example there are at least 100 “paper” ounces for every real ounce (thank you Jeffery Christian for this admission) and the paper markets have “made” the price for years now. We knew all of this before and what has happened since last Wednesday only supports this view and confirms it.</div>
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First let’s see what has happened in the paper markets. The open interest in gold went up during Friday’s trading by some 13,000 contracts while silver dropped about 1,000 contracts, yesterday gold open interest increased another 10,000 contracts and silver increased by 3,500. So, while gold and silver’s price was monkey hammered, the amount of contracts open actually increased? How can this be? Weren’t people “selling”, the price went down… more sellers than buyers… right? Well yes, what apparently happened was that there WERE more sellers, the increase in open interest was initiated by “short sellers”. Were the last 2 trading days an event where “longs” finally panicked out and sold, open interest would have gone down, it did not and in gold’s case the open interest actually rose substantially. The obvious fingerprints of what GATA has been saying for 15 years now are all over this move, it was a fake and “made” to happen!</div>
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Now let’s look at the physical side of the market. On Friday, Miles Franklin did 116 orders, there was only 1 buyback. Yesterday we did 90 orders with only 3 being sells. So what is this “buy to sell” ratio, at least 30 to 1 buys over sells? Does this sound like a panicked market where everyone wants out of the water? We also can look at what other dealers are doing by going online to look at pricing and availability. Junk silver for all intents and purposes is gone, the only thing left are the scraps that your local dealer has to sell as “bags” are not available and were last trading at $5 (20%) over spot on Friday morning. Other silver product has become spotty as to availability and premiums rose dramatically over the last week. Low price in the physical market IS doing what it is supposed to do; it is bringing out demand and drying up supply. But, if real demand has been exploding and supply is tight, then how did the price get here in the first place? It is obvious that the futures market “wagged this dog” BIG time!</div>
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<a href="http://blog.milesfranklin.com/price-and-availability-revisited">READ MORE</a></div>
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Gold Market Update</h2>
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Clive Maund</div>
<i class="date" style="color: #333333; font-family: arial; font-size: 11px; line-height: 24px;">originally published <b>April 14th, 2013</b></i><span style="color: #333333; font-family: georgia; font-size: small; line-height: 24px;"> </span><br />
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<span style="color: #333333; font-family: georgia; font-size: small; line-height: 24px;">A number of subscribers have written in to me asking how I knew to load up with Puts on Thursday ahead of Friday’s massive smash in the gold market. The answer to that is that when you have been watching markets and price movements for as long as I have and understand how Big Money thinks and operates, you develop a “sixth sense” for the kind of stunts they can pull.</span></div>
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We have pointed out repeatedly in the recent past the immense importance of the strong and clearly defined support levels for gold and silver at about $1500 - $1530 and $26 respectively, which have generated several significant reversals over the past 18 months or so. We also made clear that if we know how important these support levels are (were) then for sure Big Money does, and that they would plot to crash these support levels and trigger waves of stops if it was in their interests to do so.</div>
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Now that they have done so, let’s consider why – what is their motive? There has been a big drawdown in physical gold warehouse stocks at the Comex this year, and a really dramatic drawdown at the J P Morgan Chase depository. If, as a result of this, stocks are too low to meet deliveries, gold would have to be bought in the open market, driving prices sharply higher, and they for sure don’t want that now that their stocks are so low. So the game is to smash the gold price so that they can replenish their stocks on the cheap – and they are not short of friends in high places who can assist them in this endeavor.</div>
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The first “smoke signal” came over a week ago with some members of the Fed purported making rumbling noises about reining in QE, as reported in the latest Minutes. That served to get the gold market nervous. Then there were widely circulated reports last week about the “tiny island”, Cyprus, having to sell 400 million euros worth of gold on to the market – not bad for a “tiny island” - which, although unfounded, depressed and weakened gold further. By the way Cyprus is not tiny, it is BIG, and I invite any more ignorant or sloppy commentators referring to Cyprus as a “tiny island” to come with me to the island, where I will gladly drop you off at a remote location with a decent pair of walking boots, and then relax in the capital and see how long it takes you to join me <i>on foot</i>, no buses or hitchhiking permitted.</div>
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Finally, just by coincidence you understand, after waves of selling in New York during the day on Friday had softened gold up nicely and brought it down close to its critical support, the <i>London physical market locked up on Friday afternoon</i>. Some investors entertain the romantic notion that this physical market is like an old fashioned cattle auction, with a guy in a tweed jacket and a hat spouting 200 words a minute of auctioneers jargon. It is not. It is computerized and the computers froze on Friday shutting out would be sellers who then went into blind panic, entering the futures market to hedge or short. This tipped the market into a vertical plunge that completed the job of crashing the key support level.</div>
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So what now? We can expect a wave a margin calls to go out over the weekend that could crash the market further next week, possibly causing the vertical plunge that began on Friday to continue, perhaps for several days. The ball may be kicked further downhill by Big Money’s media pals having a field day over the weekend proclaiming the death of the gold bullmarket. Once all the stops in the $1500 area and beneath have been triggered, it will take a lot of pressure off Big Money and the Comex to meet deliveries – and it will also enable them to replenish inventories at knockdown prices. This is why we were in favor of Puts rather than being stopped out, and thus becoming victims of the trap that they had set.</div>
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So, is the gold bullmarket over? Only if the Fed and other Central Banks choke off QE, and there is no sign of that happening, nor is it logical for them to do so as it would trigger a devastating deflationary implosion. The bull case for gold remains intact, as a friend in California put it this weekend – “Did gold fall off the cliff because the dollar index ripped higher? NO! Did Uncle Ben Bernanke say they were stopping the $85 billion + QE immediately? NO! Has physical gold become more abundant than any time in the recent past? NO! Are the world's central banks stopping their counterfeiting operations by devaluing their currency by stopping the printing presses? NO! It's quite the opposite, Japan, U.S., and the EU are increasing the money supply.</div>
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Things to look at that are happening. Are Russia, China, and India amongst other nations still buying huge amounts of gold? YES! Is QE going to continue? YES! They cannot stop it now, because they'll have a HUGE deflationary episodes which those in power do not want. It would be what is needed to reset the scales of the financial system and debts around the globe, but would mean huge financial losses to the powers that be. Silver isn't becoming more abundant, it is rarer than gold, so why is it around $26 bucks per ounce?</div>
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As we look at the charts on the precious metals, just remember, not all is what it seems. In chess you disguise your true intentions by moving the pieces around the board, setting them up for the attack; better deception skills you have, the more likely you'll win the game. Think 2-3 moves ahead of your opponent, and you'll always come out a winner.”</div>
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<a href="http://www.clivemaund.com/gmu.php?art_id=68&date=2013-04-14">READ MORE</a></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">With massive selling once again in the gold and silver markets, today whistleblower Andrew Maguire told King World News the reason for the recent takedown in gold and silver was because of an imminent LBMA default. Here is what Maguire had to say in part II of this remarkable and exclusive interview. </span></div>
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<span class="style_2" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Maguire:</span> “Gold and silver only have this type of selling when there are extreme shortages of the physical metal. I am totally aware that before this takedown occurred there was an imminent LBMA default.</div>
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We had already seen COMEX inventories plunging. In 90 days COMEX inventories saw an incredible decline. So immediately available physical gold was disappearing. People around the world don’t understand what has been happening since Cyprus.... </div>
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“Entities went to the LBMA and said, ‘We don’t trust anybody anymore. We want our physical metal.’ They were told they would be cash settled instead by a bullion bank. The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.</div>
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This is why this smash has been orchestrated because of the run that has been taking place on physical metal. So Western governments had to do this because of an imminent run on the unallocated LBMA system. The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash. </div>
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This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks. So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.”</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Maguire_-_LBMA_Default_Triggered_Gold_%26_Silver_Takedown.html">READ MORE</a></div>
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This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks</h1>
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It likely signals a big downdraft in the stock market, too</div>
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by Chris Martenson</div>
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Monday, April 15, 2013, 3:55 PM</div>
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A while back, I noted to Adam that the gold slams that were first detected back in January were among the weakest I'd ever seen. Back then I was seeing the usual pattern of late-night, thin-market futures dumping, which I had seen before in 2008 and 2011, two other periods when precious metals were slammed hard. </div>
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The process is simple enough to understand; if you want to move the price down for any asset, your best results will happen in a thin market when there's not a lot of participation so that whatever volume you supply has a chance of wiping out whatever bids are sitting on the books. It is in those dark hours that the market-makers just dump, preferably as fast as possible.</div>
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This is exactly what I saw repeatedly leading up to Friday's epic dump-fest. The mainstream media (MSM), for its part, fully supports these practices by failing to even note them. The CFTC has never once commented on the practice, and we all know that central banks support a well-contained precious metals (PM) price because they are actively trying to build confidence in their fiat money and rising PM prices serve to reduce confidence.</div>
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Here's a perfect example of the MSM in action, courtesy of the Financial Times:</div>
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<a href="http://www.ft.com/intl/cms/s/0/6055d326-a5ad-11e2-9b77-00144feabdc0.html#axzz2QWzzx03d" style="color: #206282; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Gold tumbles to two-year low</a></h4>
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“There is no other way to put gold’s recent sell-off: nasty,” said Joni Teves, precious metals strategist at UBS in London, adding that <strong>gold would have to</strong> work to <strong>“rebuild trust”</strong> among investors.</div>
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Tom Kendall, precious metals analyst at Credit Suisse said<strong> “Once again gold investors are being reminded that the metal is not a very effective hedge against broad-based risk-off moves in the commodity markets.”</strong></div>
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There are two things to note in these snippets. The first is that the main ideas being promoted about gold are that it is no longer to be trusted and that somehow the recent move is a result of "risk off" decisions <i>– </i>meaning, conversely, that there is increased trust in the larger financial markets that 'investors' are rotating towards. Note that these ideas are <em>exactly </em>the sort of messages that central bankers quite desperately want to have conveyed.</div>
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The second observation is even more interesting, namely that the only people quoted work directly for the largest bullion banks in the world. These are the very same outfits that stood to gain enormously if precious metals dropped in price. Of <em>course</em> they are thrilled with the recent sell off. They made <em>billions</em>.</div>
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In <em>February,</em> Credit Suisse 'predicted' that the gold market had peaked, SocGen said the end of the gold era was upon us, and recently Goldman Sachs told everyone to short the metal.</div>
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While that's somewhat interesting, you should first know that the largest bullion banks had amassed huge short positions in precious metals by <em>January</em>.</div>
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<a href="http://www.peakprosperity.com/blog/81535/gold-slam-massive-wealth-transfer-our-pockets-banks">READ MORE</a></div>
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<a href="http://silverdoctors.com/jim-willie-real-physical-price-of-gold-soars-to-2000oz-as-comex-burns/#more-25142">JIM WILLIE: REAL PHYSICAL PRICE OF GOLD SOARS TO $2,000/OZ AS COMEX BURNS!</a></h1>
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<strong>In this MUST LISTEN interview, the Golden Jackass Jim Willie states that in the wake of the impending LBMA default that Andrew Maguire warned was in progress Monday, <span style="color: red;">physical gold orders in size are being filled at the $2,000/oz price level, while the COMEX futures prices crashes and burns!</span></strong></div>
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<strong>Is the long-awaited final disconnect between paper and physical gold and silver occurring before our eyes? The fact that <a href="http://silverdoctors.com/cnt-sold-out-of-all-physical-silver/" style="color: #008dcf; text-decoration: none;">US wholesalers are SOLD OUT of physical silver as of Monday evening</a> seems to substantiate this fact.</strong><br />
<strong><span style="color: blue;">Jim Willie’s full report is below:</span></strong></div>
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GOT GOLD YOU CAN HOLD?<br />
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GOT SILVER YOU CAN SQUEEZE?<br />
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GET IT WHILE YOU CAN!!!!!!!!!!!!!!!!!!!!!</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-13506260185447717702013-04-15T06:59:00.001-05:002013-04-15T06:59:06.595-05:00Who Is Buying ALL The GOLD That Is Being Sold?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;"><br /></span>
<span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">On the heels of enormous volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, tells KWN readers what they must know about the incredible action that is now taking place in these key markets.</span><br />
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Below is Fitzwilson’s exclusive piece for KWN:</div>
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<span style="font-weight: 700;"><span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Fitzwilson:</span> </span><b><span style="color: red;">“Give me control of a nation's money and I care not who makes it's laws” — Mayer Amschel Bauer Rothschild</span></b></div>
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“In trying to make sense of what occurred late last week and to start this week, it is important to remember this quote. The unifying factor underlying much of what we witnessed is the stark reminder that all of these seemingly disparate events share a common factor, control of the money. </div>
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Real wealth as a whole is comprised of natural resources, labor and intellect. If you control the money, you control everything. The ability to control the unlimited creation of money is the ultimate form of power as Rothschild stated. The holders of such power do not readily relinquish it.</div>
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It is not just the savage attacks on gold and silver. Waves of selling have been launched in oil, copper, platinum and palladium.... </div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Here_Is_What_You_Must_Know_About_The_Gold_%26_Silver_Smash.html">READ MORE</a></div>
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<span style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 30px; font-style: normal; line-height: 36px; text-decoration: underline;"><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/14_Tragedy%2C_Panic_%26_The_Greatest_Shortest_Squeeze_In_History.html">Tragedy, Panic & The Greatest Short Squeeze In History</a></span></div>
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<span style="color: #031a95; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal;">Today Egon von Greyerz told King World News that within months, as more fires start to burn in the financial system, the world will see a massive and stunning coordinated global rescue package and one of the greatest short squeezes in history. Greyerz also said all of the major countries will participate. Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview. </span></div>
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Greyerz:</span> “Eric, this is a time when investors should really be concerned, and not because of the current correction in the gold price. What we are facing is an unprecedented situation with most sovereign states being bankrupt, and the banking system also being bankrupt.</div>
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But at the same time stock markets are at a high, and so many investors are happy. They are being led into having a false sense of security because they don’t understand that it’s the printed money that’s creating another asset bubble in the stock market.</div>
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Printed money is looking for a home and the stock market is the most obvious one. This asset bubble will lead to a disaster. The stock market is headed for a major long-term decline that will begin in 2013....</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/14_Tragedy%2C_Panic_%26_The_Greatest_Shortest_Squeeze_In_History.html">READ MORE</a></div>
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GGR's Arensberg responds to anti-gold propaganda posing as journalism</h1>
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<span class="submitted" style="color: #777777; font-size: 0.8em;">Submitted by cpowell on Sun, 2013-04-14 15:43.</span><span class="taxonomy" style="color: #777777; font-size: 0.8em;"> Section: <a href="http://gata.org/taxonomy/term/2" rel="tag" style="color: #777777; text-decoration: none;" title="">Daily Dispatches</a></span><div class="content" style="line-height: 1.2; margin: 0.5em 0px;">
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11:35a ET Sunday, April 14, 2013</div>
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Dear Friend of GATA and Gold:</div>
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The Got Gold Report's Gene Arensberg today can't resist taking a few cracks at one more "journalist" who eagerly disparages gold but can't be bothered to put a single question to a primary original source of gold trading information, a central bank. Arensberg's commentary is headlined "Arrogant Gold Bears Press in the Market and in Print" at it's posted at the Got Gold Report here:</div>
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<a href="http://www.gotgoldreport.com/2013/04/arrogant-gold-bears-press-in-the-market-and-in-print.html" style="color: #777777; text-decoration: none;" title="http://www.gotgoldreport.com/2013/04/arrogant-gold-bears-press-in-the-market-and-in-print.html">http://www.gotgoldreport.com/2013/04/arrogant-gold-bears-press-in-the-ma...</a></div>
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It's really not journalism about gold, only propaganda, if it doesn't try putting some questions to central banks about their surreptitious involvement in the market, such as the questions raised here:</div>
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<a href="http://www.gata.org/node/12395" style="color: #777777; text-decoration: none;" title="http://www.gata.org/node/12395">http://www.gata.org/node/12395</a></div>
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CHRIS POWELL, Secretary/Treasurer<br />Gold Anti-Trust Action Committee Inc.</div>
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<span style="line-height: 1.2;">$1385 Gold and $22.90 should prove to be the BOTTOMS in Gold and Silver...if you are not backing up the truck here you must not own a truck...BORROW ONE!</span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-78516022708016488722013-04-14T19:49:00.003-05:002013-04-14T19:53:38.827-05:00The Bull Market in Gold is over? That's LUDICROUS!<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; font-family: Arial; font-size: 27px; font-weight: bold;">ludicrous</span><br />
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lu·di·crous</h2>
<sup style="bottom: 1ex; font-size: 0.75em; height: 0px; line-height: 1; position: relative; vertical-align: baseline;"></sup> <span class="pronset"><span audio="http://static.sfdict.com/dictstatic/dictionary/audio/luna/L04/L0415200.mp3" default="http://dictionary.reference.com/audio.html/lunaWAV/L04/L0415200"></span> <span class="show_spellpr" style="display: inline;"><span class="prondelim" style="font-family: Verdana, Arial, Helvetica, sans-serif;">[</span><span class="pron" style="display: inline; font-family: Verdana, Arial, Helvetica, sans-serif;"><span class="boldface" style="font-weight: 700;">loo</span>-di-kr<span class="ital-inline" style="display: inline; font-family: Georgia, Verdana, Arial, Helvetica, sans-serif; font-style: italic;">uh</span><img alt="" border="0" class="luna-Img" src="http://static.sfdict.com/dictstatic/dictionary/graphics/luna/thinsp.png" style="border: 0px; vertical-align: text-top;" /><img alt="" border="0" class="luna-Img" src="http://static.sfdict.com/dictstatic/dictionary/graphics/luna/thinsp.png" style="border: 0px; vertical-align: text-top;" />s</span><span class="prondelim" style="font-family: Verdana, Arial, Helvetica, sans-serif;">]</span> </span></span></div>
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<span style="font-family: Verdana, Arial, Helvetica, sans-serif; font-style: italic; font-weight: bold;">adjective</span></div>
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<span id="hotword"><span id="hotword" name="hotword" style="cursor: default;">causing</span> <span id="hotword" name="hotword" style="color: #0055bb; cursor: pointer;">laughter</span> <span id="hotword" name="hotword" style="cursor: default;">because</span> <span id="hotword" name="hotword" style="cursor: default;">of</span> <span id="hotword" name="hotword" style="cursor: default;">absurdity;</span> <span id="hotword" name="hotword">provoking</span> <span id="hotword" name="hotword">or</span> <span id="hotword" name="hotword">deserving</span> <span id="hotword" name="hotword" style="cursor: default;">derision;</span> <span id="hotword" name="hotword" style="cursor: default;">ridiculous;</span> <span id="hotword" name="hotword" style="cursor: default;">laughable:</span> </span><span class="ital-inline" style="display: inline; font-family: Georgia, Verdana, Arial, Helvetica, sans-serif; font-style: italic;"><span id="hotword"><span id="hotword" name="hotword">a</span> <span id="hotword" name="hotword">ludicrous </span><span id="hotword" name="hotword">lack</span> <span id="hotword" name="hotword">of</span> <span id="hotword" name="hotword" style="cursor: default;">efficiency. [<a href="http://dictionary.reference.com/browse/ludicrous?s=t">dictionary.com</a>]</span></span></span></div>
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The general consensus of the Gold Community regarding Friday's Banking Cartel attack on "the price" of the Precious Metals: "LUDICROUS!"</div>
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I personally maintain my belief that "the assault on Gold is futile", and the collapse of the US Dollar is inevitable...if not imminent. <br />
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Friday we witnessed the most blatant coordinated attack on the paper price of Gold by the bullion banks since the Bull Market in Gold began in 2001. All previous attacks on the price of Gold [and Silver] have been futile, and in vain. All have been followed by new all time highs in the price of Gold, and this time will be no different.<br />
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Do you really believe the "price" of Gold dropped $84 an ounce Friday because Cyprus was being forced to sell it's Gold? That's LUDICROUS! If that were true, why did the price of Silver fall over 6%. Cyprus wasn't selling any Silver.</div>
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The US Dollar on Friday was neither up OR down, and the "price" of Gold fell $84 an ounce? That's LUDICROUS!</div>
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The Bull Market in Gold is over? That's LUDICROUS!</div>
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<a href="http://blog.milesfranklin.com/how-does-selling-their-gold-fix-their-problems">How Does Selling their Gold Fix their Problems?</a></h2>
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Author : Bill Holter<br />
Published: April 12th, 2013</div>
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I had not planned any commentary today but with gold “down” $65 per ounce I will put my 2 cents in. As you know, I called “bottom” about 5 weeks ago the first time we hit $1,550 then again about 2 weeks ago on the retest of those levels. They were broken decisively today. The reason for Wednesday’s sell off of $25? And the reason given for today’s $65 by the CNBC know nothings? Cyprus!</div>
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Yep, Cyprus may sell ALL of their gold and swamp the market! This week’s price action is merely “front running” these sales in order to get out before the price is CRUSHED! But wait, Cyprus has less than 14 tons of gold… this is worth some $650 million (yes, with an “m”) yet they have an updated shortfall of some $23 billion (with a “b”) so how does selling their gold fix their problems? Well obviously it does not even amount to a drop in the bucket as it is only 3% or so of what capital they will need to raise!</div>
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Let me put this into perspective for you in a couple of different ways. The Fed is creating $85 billion per month or close to $3 billion per day, 24/7. The Cypriot gold is only 1/5th of what our Fed prints EVERY day! The U.S. Treasury borrows some $4 billion per day to keep our well-oiled economic engine running. ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day. Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total gold holdings, the Cypriot gold is a mere 4 day’s worth of imports. One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of gold for 1 year… it is nothing. No, $650 million in today’s world is LESS THAN NOTHING!</div>
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So, we are told that the sale of $650 million worth of Gold has just caused a 3+% drop in the price of gold (and more than 5% in silver). Is this credible? And if it had any credibility at all, this is gold being sold, not silver so why would silver, platinum, palladium and even copper be sold off? I will leave you with a few questions that I won’t answer because the answers are too obvious. Do you really believe that holders of physical metal would part with their metal if they knew something bad like a system wide banking failure was imminent? Or a (another) sovereign was going to default? Or some whackos were going to start lobbing nuclear weapons up in the air? Would physical holders sell (in panic fashion no less) because a “treasure” was found or some new mine opened that had 14 tons of gold?</div>
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Do you see the lack of logic here? Literally trillions of dollars in paper monies are being put into the system and gold is not only finite, it is scarce to begin with. More physical has been purchased than produced over the last at least 20 years so we know that “inventories” are shrinking. Do you not think that the Chinese would like to take an extra 14 tons into their hoard? How about India? There are reports of shortages of gold in south India, wouldn’t they like this 14 tons to alleviate the shortage?</div>
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Or, maybe I’m reading this thing the wrong way. Maybe investors are selling their paper gold because they suddenly realized that it has no backing. Maybe they will sell it all the way down to its intrinsic value… ZERO! All I can say is that in the past whenever gold was sold off in violent fashion, we soon found out about another BIG problem that was brewing behind the scenes. This is my bet, something big, REALLY BIG is collapsing out of sight of the public’s eye and we will only learn of it after the fact.</div>
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By the way, when the markets close there will be a period of time where no one has a clue about what the “price of gold” is. The only thing you will know is whether you have it or not.</div>
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<i>The action of the Gold market under the direction of Goldman and Merrill in a nutshell:</i></div>
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<i>"The things you want you have to make look bad, the things you want to get rid of you need to make look good. This is the biggest Kabuki theatre on earth. Almost everybody is fooled in plain sight."</i></div>
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<i>CIGA Patrick</i></div>
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Flagrant Desperation by The Cerebral Aesthetic Vagabond<br />
April 13, 2013<br />
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“They” must be getting desperate to resort to such flagrant manipulation of the markets, the way they did yesterday.<br />
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Just Another Day At The G-S Corral<br />
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For years gold and silver have been routinely pummeled to protect the U.S. Dollar’s image, but never more so than Friday, April 12, when, according to one expert, 500 tons of gold were sold in the futures market in a single day. To put that in perspective, just a few years ago the major governments of the world were bound by agreement to limit their collective gold sales to 500 tons per year! So selling 500 tons in a single day is a truly staggering quantity, but consistent with the observed price action. Needless to say, a sale of that magnitude can have no legitimate trading purpose; the objective of such a massive sale was clearly to smash the price and frighten away precious metals buyers.<br />
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One has to wonder just who are the buyers of these futures contracts. After all, anyone who’s seriously looking to purchase physical metal is not going to purchase it using these contracts. Such contracts might be useful in other commodity markets that are still legitimate, such as that for corn, but the futures market for precious metals has evolved into an instrument that exists solely for the purpose of manipulating precious metals prices. Anyone in the market for hundreds of tons of physical metal is probably shrewd enough to be aware of the corrupt nature the futures market. Moreover, I seriously doubt that the sellers of these futures contracts could deliver the metal when the contracts expire. Finally, why would someone purchase 500 tons of gold in the futures market, knowing that a sale of that magnitude would crash the price? Why would anyone purchase an asset that they could anticipate was going to decline in price?<br />
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Given the anonymous nature of these trades and the utter lack of any regulatory oversight, what’s to stop a single entity from being both the seller and buyer of these futures contracts, especially if shell companies are used to further conceal the identities of the parties? In such a case, the only thing that actually has to be transferred is a small fee to the operator of the exchange, “hush money,” since the exchange operators are every bit as culpable as the principals in manipulating these markets. Otherwise, no physical metal or cash needs to be exchanged; only a simple accounting entry has to be made in the books of the seller and buyer. And when the contract expires, the can seller offer to settle in cash, which the buyer would accept (since they’re the same party) and both parties would simply make another accounting entry canceling out the transaction. Thus, it can appear that metal has been sold, when in fact nothing has been sold or delivered. To add insult to injury, the parties involved might even be able to obtain tax deductions for any expenses or “losses” incurred in the deal!</div>
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<i><a href="http://farmerdave.x10.mx/CerebralAestheticVagabond/Flagrant_Desperation.html" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); color: #010039;">More…</a></i><br />
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For every seller, there is a buyer....<br />
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<span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Whistleblower Andrew Maguire told King World News that more than a stunning 500 tons of paper gold has been sold in today’s takedown in the gold market. Maguire also spoke to KWN about the staggering Chinese physical gold purchases. Below is what Maguire had to say in this remarkable and exclusive interview.</span></div>
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Eric King: “How much paper gold was sold to take this market down, and how much tonnage have the Chinese and others been taking out of the physical market?”</div>
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Maguire: <span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">“Just since the cross (today) of $1,550 into the (London) fix and the breach of $1,500, we are now looking at in excess of 500 tons of paper gold that’s been sold....</span></div>
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Eric King: “So all of that is today?”</div>
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Maguire: <span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">“Yes.”</span></div>
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Eric King: “So when you look at the tonnage being taken out by the central banks in the last couple of weeks, including today, what kind of tonnage are we talking about on the physical side?”</div>
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Maguire: <span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">“Deliveries in Shanghai alone in March were 283 tons. In the eight trading days of April, we have seen another 117 tons (of gold) delivered. Today was another 20 tons delivered. So what we are looking at here is over 400 tons (of gold) in less than a month and a half.</span></div>
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<span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">Eric, consider that the basis of all of the mainstream media shills coming out and saying, ‘We’re in a bearish market because GLD, the ETF, has dumped around 200 tons since the beginning of the year. <b> But what we are talking about here is China having purchased and taken delivery of over 400 tons in less than a month and a half.</b> And since the beginning of the year (that figure) is substantially higher. It’s probably in the 800 ton range (for the Shanghai Exchange). </span></div>
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<span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">So it just amazes me how people concentrate on what’s happening in one paper market. What we are seeing today is actually a very positive development. I think we’ve reached a point of capitulation. I cannot see how the central bank buying cannot overwhelm all of these short sales, despite the leverage.” </span><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Maguire_-_Over_500_Tons_Of_Paper_Gold_Sold_In_Takedown.html">http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Maguire_-_Over_500_Tons_Of_Paper_Gold_Sold_In_Takedown.html</a></div>
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<b><span style="font-family: Verdana;"><a href="http://www.zealllc.com/2013/gldhldpl.htm">GLD Holdings Plunge</a></span></b><br />
<span style="font-family: Verdana; font-size: xx-small;">Adam Hamilton April 12, 2013</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Gold has faced stiff headwinds lately as investors abandon alternative investments to chase record-high stock markets. Probably the most significant has been the major selling hammering the flagship GLD gold ETF. It has suffered such intense differential selling pressure that its custodians have been forced to dump enormous quantities of physical gold. What are the implications of this flood of new supply?</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The amount of gold bullion GLD has hemorrhaged recently is amazing. To put it into perspective, earlier this week the rumor that embattled Cyprus may be forced to sell its official gold reserves made news. The Cypriot government owns 13.9 metric tons of gold. But on <i>a single trading day alone</i> in February’s <a href="http://www.zealllc.com/2013/goldcap.htm">gold capitulation</a>, GLD had to sell 20.8 tonnes! The supply recently added by GLD dwarfs everything else.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Why is GLD dumping gold so aggressively? While silly <a href="http://www.zealllc.com/2009/gldcons.htm">conspiracy theories</a> abound as always in the gold world, the reality is far less provocative. GLD’s mission is simply <i>to track</i> the price of gold. The World Gold Council (which is funded by leading gold miners) created this gold investment vehicle in November 2004 to offer stock investors an easy, cheap, and efficient way to obtain gold exposure in their portfolios.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The gold miners created <i>a direct conduit</i> for the vast pools of stock-market capital to chase gold. The only way for GLD to fulfill its mission of tracking gold is for this ETF to shunt excess GLD-share demand and supply into underlying physical gold bullion itself. This capital sloshing into <i>and out of</i> gold via GLD has naturally had a massive impact on global gold prices. And lately gold has suffered a major GLD exodus.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">During times like 2009 when gold grows popular among investors, GLD shares are bought up far faster than gold itself is rallying. This excess, or differential, GLD demand would quickly force this ETF to decouple from the metal to the upside if not equalized into physical gold. So GLD’s custodians sop it up by issuing new GLD shares to meet demand. They then use the proceeds <i>to buy more gold bullion</i>.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">But when gold is falling out of favor like now, capital flows reverse. GLD shares are dumped at a quicker pace than gold’s own selloff. This differential selling pressure creates an excess supply of GLD shares. This ETF would decouple from gold to the downside if this wasn’t equalized into the metal. So GLD is forced to buy up this excess supply. It raises the cash to do this by selling some of its gold bullion.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">And this is what we’ve experienced lately, <i>heavy</i> differential selling pressure. As the levitating stock markets rise ever higher, investors have sold gold to buy general stocks. Because of its incredible liquidity, GLD has been the epicenter of this anti-alternative-investment rotation. It’s rather illogical when you think about it, selling gold low to buy stocks high. Investors are supposed <i>to buy low</i> and sell high!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">But sadly greed and fear always overwhelm reason at market extremes. Foolish investors rush to sell low after long corrections, just before new uplegs are born. And later they eagerly flood into markets after long uplegs, buying high just before major corrections. Selling low and buying high leads to financial ruin, which is why such a small fraction of investors ever achieve significant success in the financial markets.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Gold is universally despised right now because it is low, the ideal time to buy. General stocks are adored if not worshipped because they are high, the prudent time to sell. Every day on CNBC, a long parade of analysts effectively proclaim gold is doomed to sink to zero while stocks will joyously rally forever more. The intense selling pressure GLD has faced in recent months simply reflects these emotional extremes.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">As a contrarian I’ve grown rich <i>fighting the crowd</i>, being brave when others are afraid and afraid when others are brave as Warren Buffett once eloquently put it. That’s the only way to buy low and sell high. So I’ve watched GLD’s holdings lately with great interest. Thankfully this flagship gold ETF is very transparent, publishing its holdings daily. How does GLD’s holdings plunge stack up relative to precedent?</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">This first chart over the past year or so highlights the extreme differential selling pressure GLD has faced in recent months. Its holdings are shown in blue and tied to the right axis, superimposed over the gold price in red. There has been no bigger headwind facing gold lately than the deluge of physical-gold-bullion supply GLD has been forced to dump into the global gold markets. It has proven overwhelming.</span></div>
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<span style="font-family: Verdana;"><span style="font-size: x-small;"><a href="http://www.zealllc.com/2013/gldhldpl.htm">READ MORE</a></span></span></div>
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<span style="font-size: large;"><b><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Former_US_Treasury_Official_-_Fed_Orchestrated_Smash_In_Gold.html">Former US Treasury Official - Fed Orchestrated Smash In Gold</a></b></span><br />
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Eric King: “Dr. Roberts, we have this smash on gold and silver today. Gold down $75 at one point and silver was down $1.75, your thoughts here?”</span></div>
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Dr. Roberts:</span> “This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance. </div>
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Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold. So what they are trying to do is scare the individual investor out of bullion. Clearly there is something desperate going on.... </div>
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“I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.</div>
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The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.</div>
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And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency. The Japanese are now going to print money like the Fed. They are lobbying the ECB to print more. So I see this as a dollar protection policy.</div>
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...I know where the gold is coming from in the market, it’s just paper. It’s naked shorts, there is no gold there. If somebody wanted to take delivery on those contracts nobody would be able to provide it. I don’t know what the source of the (physical) gold is. Some people are saying that the actual stocks available for possession are rapidly declining.”</div>
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Eric King: “Going forward, Dr. Roberts, what do you expect out of all of this? If the gold is coming out of Western central bank vaults and flowing to the East, the old saying is, ‘So goes the gold, so goes the power.’”</span></div>
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Dr. Roberts: </span>“Well, I think the power of the West has already been lost. When you have off-shored your manufacturing and professional service jobs, you’ve hollowed out your economy. So gold or no gold, the United States economy has been severely damaged and I don’t think it can recover.</div>
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This gold business (smash in price) is something to do with the dollar. They are trying to save this Federal Reserve policy of negative real interest rates. You can’t do that if the dollar loses value relative to gold because it implies it should be losing value relative to other currencies.</div>
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If the dollar’s exchange value drops, then the price of imports that come in here (to the US) rise. So you get domestic inflation, and if you have domestic inflation you can’t have zero interest rates, or negative real interest rates. So the Fed would lose control and that’s the basis of this policy.</div>
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They are trying to destroy gold as a (safe) haven from the dollar in order to carry on the Fed’s policy of negative real interest rates. That is what is driving the illegal policy of selling naked shorts in order to manipulate a market. If you and I were to do something like this without the government’s instruction or protection, we would be arrested (laughter ensues). So the fact that it’s illegal, being done by the authorities, tells me that they are seriously worried about the dollar.”</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Former_US_Treasury_Official_-_Fed_Orchestrated_Smash_In_Gold.html">READ MORE</a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Is the assault on Gold an effort to defend the US Dollar from it's imminent demise?</span></div>
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<b>Dollar:</b></div>
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<i>The first story today is the dollar. It has been my theory now for several weeks that the dollar rally is a mirage. Usually a dollar rally signals a flight to safety during a period of risk off, corresponding to an intermediate degree correction in the stock market.</i></div>
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<i>That was not the case this time. The dollar wasn’t rising because of a flight to safety. The dollar was rising because the yen, euro, pound, and Canadian dollar were all dropping down into intermediate or yearly cycle lows at the same time. This put tremendous upward pressure on the dollar for no other reason than traders were selling everything else.</i></div>
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<i>That phase has ended. At this time I’m confident that at least 3 out of the 4 currencies have completed their decline and begun intermediate degree rallies. The only one still in question to complete the bottoming cluster is the yen. I’m not sure that one has made a final bottom just yet. Once it does, and starts to rally, the dollar is going to come under extreme pressure. All of these currencies produced extremely sharp ICL’s and regression to the mean is going to push very sharp upside moves as they come out of these lows. That is going to translated into a very hard move down in the dollar.</i></div>
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<i>As a matter of fact, on Friday the dollar marginally pierced the previous daily cycle low. When this happens it indicates that the current daily cycle has “failed”. All that means is that a pattern of lower lows and lower highs has begun. This almost always signals that an intermediate decline has started.</i></div>
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<a href="http://smartmoneytrackerpremium.com/index.php/2013/04/13/april-13-weekend-report/dollar-311/" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); color: #010039;"><i><img alt="clip_image002" border="0" height="662" src="http://www.jsmineset.com/wp-content/uploads/2013/04/clip_image0026.jpg" style="background-image: none; border: 0px; display: inline; margin: 0px 0px 1.5em; max-width: 100%; padding-left: 0px; padding-right: 0px; padding-top: 0px;" title="clip_image002" width="1069" /></i></a><i></i></div>
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<i>Click on chart to enlarge</i></div>
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<i>So we now have an intermediate dollar cycle where the second daily cycle has already failed. We should now have at least two and possibly three more left translated daily cycles before a final intermediate bottom. Since the intermediate cycle is left translated it should move below the prior ICL. I think it will drop well below that level, maybe even far enough to test the may 2011 lows. The extreme currency weakness we’ve seen in other currencies is now ready to infect the US dollar.</i></div>
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<a href="http://smartmoneytrackerpremium.com/index.php/2013/04/13/april-13-weekend-report/dollar-weekly-cycle-2/" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); color: #010039;"><i><img alt="clip_image004" border="0" height="662" src="http://www.jsmineset.com/wp-content/uploads/2013/04/clip_image0043.jpg" style="background-image: none; border: 0px; display: inline; margin: 0px 0px 1.5em; max-width: 100%; padding-left: 0px; padding-right: 0px; padding-top: 0px;" title="clip_image004" width="1069" /></i></a><i></i></div>
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<i>Remember we are talking about a yearly cycle low starting. Yearly cycle lows are scary as hell events. The summer of 2011 in the stock market was a yearly cycle low. Gold is in a yearly cycle low, granted a somewhat artificial one, but you get the picture. At yearly cycle lows it seems like the world is ending.</i></div>
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<i>Since the dollar move is somewhat artificial (85 billion a month) just like what is happening in gold, we can probably expect the same kind of hopeless conditions at the bottom later this summer. By the time we get into the final bottoming phase the dollar is going to be in complete freefall.</i></div>
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<i><a href="http://smartmoneytracker.blogspot.com/">READ MORE</a></i></div>
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<b><span style="font-size: large;"><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/13_Haynes_-_Were_On_The_Verge_Of_Major_Gold_%26_Silver_Shortages.html">Haynes - Gold & Silver Buyers Outpacing Sellers 50 to 1</a></span></b><br />
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<span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today 41-year market veteran Bill Haynes warned King World News that we are already already on the verge of seeing major shortages of available retail bullion products. Haynes also said gold and silver buyers are outpacing sellers by a stunning margin, and he is now seeing premiums on physical products that haven’t been seen in decades. Below is what Haynes had to say in this extraordinary interview.</span><br />
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Haynes: </span>“Eric, last week we sold more gold and silver than we normally sell in a whole month. On Friday alone it was astounding because we sold as much physical bullion as we would normally sell in an entire week. There is a great deal of big money coming into the market on this decline.</div>
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If buying continues at the rate we saw on Friday, there will be immediate shortages of product....</div>
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“We will see instant shortages of silver products such as silver rounds, 10 ounce bars, 100 ounce bars, silver eagles, and silver maple leafs if this relentless demand continues. Silver eagles and silver maple leafs are already seeing delayed delivery. </div>
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In other words, the mints can’t keep up with the demand for those coins. The US Mint could easily have another record year of 40+ million ounces of American Silver Eagle sales. I would also add that there are already premiums on 90% silver coins that we haven’t seen in decades.</div>
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But the buying is coming in huge for both gold and silver. The physical gold market is on fire as well. Our largest 7-figure order this week was specifically for one ounce gold bars. There was also big buying of American Gold Eagles. This massive buying is taking place in the entire metals industry right now. </div>
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This is why I cannot stress to you enough that we will see immediate shortages of product if this continues. If another ‘Black Swan’ happens I can promise you we will see immediate shortages of gold products as well.”</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/13_Haynes_-_Were_On_The_Verge_Of_Major_Gold_%26_Silver_Shortages.html">READ MORE</a></div>
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<b><span style="font-size: large;"><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Maguire_-_There_Is_Absolutely_No_Physical_Gold_For_Sale.html">Maguire - There Is Absolutely No Physical Gold For Sale</a></span></b><br />
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<span class="style_1" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Maguire:</span> “It’s pure short selling in the paper market, and the focus of all of this all is to reach and target as many long-stops as possible which they have done this afternoon. Then they can obviously cover these paper short sales.</div>
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Historically, in order to succeed when the official sellers have come in, they have relied on being able to back up the paper market interventions with real physical supply, albeit, hypothecated or re-hypothecated, borrowed or leased bullion....</div>
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“It’s easy to look at the technicals today and see this cascade down, that’s the long stops being tripped. But what we are seeing now is none of the physical supply is appearing. None of it is going to back up these sales. So this is a clear sign of weakness. </div>
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Now the bullion banks are really trading the Fed’s ‘virtual market book,’ but they are constrained. They are really constrained as to how far they can push these paper prices because the ... Eastern hemisphere central banks, who are competing with each other to buy (physical) bullion, these are the guys that are picking up this discount. This (smash in gold) results in an exponential ramp-up in their physical buying. </div>
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All they (central planners) are doing is delaying an extremely disorderly rebound (in the price of gold). Give it a few days because at least 90 tons of central bank buying today was seen below $1,550, into the afternoon fix (in London). As we cascade down here you can guarantee that what they (Eastern buyers) are doing is ‘spot indexing,’ which is basically locking in the price in the paper market and will allocate that at an upcoming fix (in London). </div>
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So I give it (at the most) two to three days before this has a massive rebound effect, and the short fuel above the market now is at absolutely unprecedented levels.” </div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Maguire_-_There_Is_Absolutely_No_Physical_Gold_For_Sale.html">READ MORE</a></div>
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<span style="color: green; font-size: large;"><b>The Increasing Irrationality Of The Gold Market</b></span></div>
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<b>Jason Hamlin<br />13 April 2013</b></div>
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">The gold price fell through key support today, declining by $84 or 5.4%. Silver dropped by $1.81 or 6.5% to just $25.85. I have no problem with corrections in general, as they are a healthy part of any bull market and provide a platform from the which the next upleg can spring. But something is not quite right about the recent price action in precious metals as the markets have become increasingly divorced from reality over the past few months. Let’s look at some of the glaring contradictions and then discuss the implications.</span><br />
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<b style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: medium; font-style: normal; line-height: normal;">Gold and Silver Drop Sharply Despite USD Holding Steady</b><br />
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">Gold is down 4% today and silver has declined by roughly 5%, yet the USD trades essentially flat. Nothing says that gold has to always adhere to the inverse correlation with the USD, but it has been one of the strongest correlations over the course of this bull market. Kitco has a page that shows how much of the daily price change is due to the change in the USD vs. selling pressure. None of today’s decline can be attributed to weakness in the dollar. One has to ask what exactly is causing such extreme levels of selling in the face of a steady dollar? </span><br />
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<span style="color: #006600;">Big Banks Telling Investors to Sell While Central Banks Buy at Record Levels</span></h3>
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<span style="color: #006600;">Mining Stocks Fall Precipitously, Despite Insider Buying at Multi-Year Highs</span></h3>
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<span style="color: #006600;">The Silver Price has Fallen Sharply, Yet Sales of Silver Eagles Have Hit All-Time Records in 2013</span></h3>
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">Supporting this notion of manipulation and a recent increase in the severity of it, John Embry recently commented:</span><br />
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">Both gold and silver have been flooded with several simultaneous waterfall declines on the COMEX. Gold and silver have also been hit by heavy selling during the quietest periods of the day, suggesting that pressure wasn’t coming from profit-seekers. Moreover, almost all rallies on the COMEX were capped at a gain of almost exactly 1%, as algorithms were switched on.</span><br />
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">The recent price action definitely smacks of a desperate attempt at holding down precious metals and keeping the fiat fractional reserve debt-based dollar as world reserve currency. I think the powers that be are getting a little nervous, desperate and increasingly blatant in their attempts to maintain their power to print the world’s reserve currency. This comes after an incredible crisis in Cyprus that has shaken the confidence of depositor and investors worldwide.</span><br />
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;">I think this signals that we are at or near a bottom in the precious metals correction, although the technical damage done today suggests a further decline. At some point soon though, the gig will be up and there will be a flood of money rushing into safe-haven assets such as gold and silver. This rush will be particularly powerful because for the first time in modern history, the other competing safe haven, the U.S. dollar, will be the asset from which people are fleeing and seeking such shelter. </span></div>
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<span style="-webkit-text-size-adjust: auto; background-color: #ffffcc; font-family: arial; font-size: xx-small; font-style: normal; font-weight: normal; line-height: normal;"><a href="http://www.gold-eagle.com/editorials_12/hamlin041213.html">READ MORE</a></span></div>
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<a href="http://www.peakprosperity.com/podcast/81512/mike-maloney-todays-low-gold-silver-prices-not-realistic">Mike Maloney: Today's Low Gold & Silver Prices Are Not Realistic</a></h1>
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What most people do not understand is that the price of gold and silver are not determined by how much gold and silver is being sold. It is how many <strong>gold and silver IOUs are being sold</strong>. And you can write as many IOUs, futures contracts and options, as you want. Those are unlimited. The supply, though, of physical gold and silver is quite limited, and so when people actually start asking for it and they want the physical, then there is a divergence of the paper price versus the physical price, and we are seeing that right now.</div>
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We are in a back-order situation with all of the suppliers. Spreads are going up. Silver eagles cost about fifty cents over spot more than they normally cost because all of the suppliers have had to raise their price to try and find the supply/demand equilibrium that the markets are for. The markets are there to try and find a supply/demand equilibrium, so then price is the arbitrator. Price rises; that draws more supply and reduces demand. Price falls; that reduces supply and increases demand.</div>
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So the price discovery mechanism of the markets is what is supposed to ensure that things are in equilibrium. We have this broken system where there are a few big players that manipulate the market, and it always shows up when shortages start developing in the physical market. You know that <strong>the price of gold and silver right now are too low to be realistic. And the good thing about that is that it cannot last</strong>.</div>
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<a href="http://www.peakprosperity.com/podcast/81512/mike-maloney-todays-low-gold-silver-prices-not-realistic">READ MORE AND LISTEN</a></div>
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ATTENTION SHOPPERS!!! These Precious Metals Prices are a gift! Quit yer bitchin, and BUY-BUY-BUY!!! And don' forget to thank your criminal banker for the deal...<br />
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Why do you think Miss Liberty walks on the American Gold and Silver Eagles?</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-86269019676942038852013-04-10T21:00:00.000-05:002013-04-10T21:00:58.422-05:00Fed's Assault On Gold Futile...Dollar Collapse Inevitable...<div dir="ltr" style="text-align: left;" trbidi="on">
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...It's Only A Matter Of Time.<br />
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The Assault On Gold — Paul Craig Roberts</h1>
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For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices.</div>
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When gold prices hit $1,917.50 an ounce on August 23, 2011, a gain of more than $500 an ounce in less than 8 months, capping a rise over a decade from $272 at the end of December 2000, the Federal Reserve panicked. With the US dollar losing value so rapidly compared to the world standard for money, the Federal Reserve’s policy of printing $1 trillion annually in order to support the impaired balance sheets of banks and to finance the federal deficit was placed in danger. Who could believe the dollar’s exchange rate in relation to other currencies when the dollar was collapsing in value in relation to gold and silver.</div>
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The Federal Reserve realized that its massive purchase of bonds in order to keep their<br />
prices high (and thus interest rates low) was threatened by the dollar’s rapid loss of value in terms of gold and silver. The Federal Reserve was concerned that large holders of US dollars, such as the central banks of China and Japan and the OPEC sovereign investment funds, might join the flight of individual investors away from the US dollar, thus ending in the fall of the dollar’s foreign exchange value and thus decline in US bond and stock prices.</div>
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Intelligent people could see that the US government could not afford the long and numerous wars that the neoconservatives were engineering or the loss of tax base and consumer income from offshoring millions of US middle class jobs for the sake of executive bonuses and shareholder capital gains. They could see what was in the cards, and began exiting the dollar for gold and silver.</div>
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Central banks are slower to act. Saudi Arabia and the oil emirates are dependent on US protection and do not want to anger their protector. Japan is a puppet state that is careful in its relationship with its master. China wanted to hold on to the American consumer market for as long as that market existed. It was individuals who began the exit from the US dollar.</div>
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When gold topped $1,900, Washington put out the story that gold was a bubble. The presstitute media fell in line with Washington’s propaganda. “Gold looking a bit bubbly” declared CNN Money on August 23, 2011.</div>
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The Federal Reserve used its dependent “banks too big to fail” to short the precious metals markets. By selling naked shorts in the paper bullion market against the rising demand for physical possession, the Federal Reserve was able to drive the price of gold down to $1,750 and keep it more or less capped there until recently, when a concerted effort on April 2-3, 2013, drove gold down to $1,557 and silver, which had approached $50 per ounce in 2011, down to $27.</div>
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The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.</div>
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<a href="http://www.paulcraigroberts.org/2013/04/04/the-assault-on-gold-paul-craig-roberts/">READ MORE</a></div>
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If Bullion Were Not a Threat Government Would Not Attack It- Paul Craig Roberts</h2>
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<b style="margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;">By Greg Hunter’s <a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">USAWatchdog.com</a></span></b><a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><b style="margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;"> </span></b></a></div>
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<span style="color: black; margin: 0px; padding: 0px;">You want to know why gold and silver prices are down? Listen to former Assistant Treasury Secretary Paul Craig Roberts. He says, <b style="margin: 0px; padding: 0px;">“When gold hit $1,900, the Federal Reserve panicked because they realized with the dollar deteriorating so rapidly, compared to bullion prices, that soon it would also deteriorate its exchange value with other currencies.” <span id="more-10281" style="margin: 0px; padding: 0px;"></span></b>So, Dr. Roberts contends, <b style="margin: 0px; padding: 0px;">“The Fed had to cap the price of gold and stop the rise. . . . If bullion (gold and silver) were not a threat, the government would not be attacking it.” </b>Not only is the Fed debasing the dollar, but the Fed and IMF encourage other countries to do the same thing. So, gold will continue to be acquired, and Dr. Roberts, who holds a PhD in economics, goes on to say, <b style="margin: 0px; padding: 0px;">“They can’t forever suppress the gold price because if you look at actual demand for physical possession of the metal, it continues to rise. . . . They are desperately concerned about the dollar.” </b>Join Greg Hunter as he goes One-on-One with <a href="http://www.paulcraigroberts.org/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Dr. Paul Craig Roberts</a>.</span></div>
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<span style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 30px; font-weight: bold; line-height: 36px; text-decoration: underline;"><br /></span>
<span style="-webkit-text-size-adjust: none; background-color: white; color: #022da7; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today Jim Sinclair spoke with King World News about the massive and coordinated attack on the gold market. Below is what </span><span class="style_1" style="-webkit-text-size-adjust: none; background-color: white; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px; opacity: 1;">Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this interview.</span><br />
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<span class="style_2" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Sinclair: </span>“Today was a coordinated attack on gold. We had the Goldman Sachs recommendation to short gold. We also had the Federal Reserve Open Market Committee notes quite unusually released before the opening. Then we had the mainstream media focus on the sale of Cyprus gold, and Mrs. Lagarde on the wire telling people everything was fine with the economy. </div>
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The market in gold has significantly changed.... </div>
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“It’s no longer the investment banks vs a community of investors who feel that gold is undervalued, but rather it has shifted, as you can see in trade figures, to major accumulation by sovereign central banks such as Russia and China.</div>
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It is also important to note that in Europe gold has been marked-to-market as far as their reserves are concerned. So the focus of today’s totally transparent attempt to discredit gold is that, yes, it will have an effect on the paper market, but it will have no effect whatsoever on the physical market where in fact the sovereigns trade. </div>
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Sovereigns don’t trade on the COMEX, they never would. Rather sovereigns trade in the physical market in London and elsewhere, and they take delivery of the gold they have purchased.</div>
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The intention of central planners is to remove concern from the general public. Yesterday we had to listen to almost embarrassing backpedaling on the definition of the bail-in, which has now been converted to the need for banks to hold additional reserves from their earnings in order to be able to have the funds to meet emergencies. </div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/10_Jim_Sinclair_-_The_Coordinated_Attack_On_The_Gold_Market.html">READ MORE</a></div>
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<span style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 30px; font-style: normal; line-height: 36px; text-decoration: underline;">Incredibly Important Developments In Gold & Silver Markets</span></div>
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<span style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal;">Today King World News is reporting on incredibly important developments taking place in the gold and silver markets. Acclaimed commodity trader Dan Norcini told KWN that “What we are seeing is a battle of titans taking place in the gold, silver, and commodity markets.” Norcini also warned that this is a similar type of setup in which the silver market moved a staggering 525% higher, and gold advanced 183%.</span></div>
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<span class="style" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Norcini has been stunningly accurate in his predictions of the movement in the gold and silver markets. Now the acclaimed trader discusses these incredibly important developments in both of these markets:</span> “What Japan is doing right now is unprecedented. The Japanese are engaged in massive QE. Their current version of QE actually exceeds the size of what the Fed has done when you compare the scale of both economies.</div>
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The world continues to witness tremendous turmoil in the currency realm, and Japanese institutions hold a staggering $6.34 trillion of government bonds, in the face of a plunging yen and virtually no yield on their bonds. What this is creating is a massive flight of money out of Japan. </div>
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This is impacting key markets around the world. Yesterday, as an example, we saw a tremendous rally in silver, solid strength in gold, and a big rally in the mining shares. But this move is very different than what we have seen in the past. This strength in gold, silver, and key commodities, is taking place as money is fleeing Japan....</div>
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“So we have Japanese institutional money flowing into gold, silver, and other key commodities at a time when the hedge fund short positions are the largest they have been in many years.</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/10_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html">READ MORE</a></div>
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Goldman's gold short call mocked by GGR's Arensberg</h1>
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<span class="submitted" style="color: #777777; font-size: 0.8em;">Submitted by cpowell on Wed, 2013-04-10 15:33.</span><span class="taxonomy" style="color: #777777; font-size: 0.8em;"> Section: <a href="http://gata.org/taxonomy/term/2" rel="tag" style="color: #777777; text-decoration: none;" title="">Daily Dispatches</a></span><div class="content" style="line-height: 1.2; margin: 0.5em 0px;">
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11:28p ET Wednesday, April 10, 2013</div>
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Dear Friend of GATA and Gold:</div>
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Gene Arensberg of the Got Gold Report today mocks Goldman Sachs' claim to be taking a short position in gold.</div>
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Arensberg writes: "Much more likely is that Goldman is already nearly maxed out on their short position for the yellow metal and, following the news from the Bank of Japan of massive new money printing, and following gold fetching up above its important $1,525 technical support, and needing new 'blood' on the short side, the Goldman gang felt the need to call in some public negative reinforcement."</div>
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Arensberg's commentary is headlined "Gold Prices Hit by Goldman Forecast Cut, Fed" and it's posted at the Got Gold Report here:</div>
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<a href="http://www.gotgoldreport.com/2013/04/gold-prices-hit-by-goldman-forecast-cut-fed.html" style="color: #777777; text-decoration: none;" title="http://www.gotgoldreport.com/2013/04/gold-prices-hit-by-goldman-forecast-cut-fed.html">http://www.gotgoldreport.com/2013/04/gold-prices-hit-by-goldman-forecast...</a></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-78547376160456264442013-04-02T13:46:00.000-05:002013-04-02T13:46:03.222-05:00SILVER ON THE VERGE OF AN EPIC SHORT SQUEEZE<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="http://www.brotherjohnf.com/wp-content/uploads/SILVER40213.jpg" style="color: #cc0000; font-weight: bold;" target="_blank"><img alt="SILVER40213" class="aligncenter wp-image-149901" height="425" src="http://www.brotherjohnf.com/wp-content/uploads/SILVER40213.jpg" style="background-color: #f3f3f3; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(221, 221, 221); display: block; margin: 10px auto; padding: 5px;" width="701" /></a></div>
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To see<a href="http://www.brotherjohnf.com/wp-content/uploads/SILVER40213.jpg"> here</a> click a larger image form the blog: <a href="http://www.brotherjohnf.com/">Silver For The People</a></div>
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Silver's 200 WEEK MOVING AVERAGE is presently at 27.02. Today's low in Silver comes in at 27.20. Silver last tested and held it's 200 WEEK MOVING AVERAGE in July of 2009. This would appear to be a supreme buying opportunity for those wishing to obtain REAL physical Silver, or add to existing positions. </div>
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The fundamental reasons for owning Silver remain the same and unchanged. The illegal and US government sanctioned selling of Silver that DOES NOT exist on the NY COMEX by the bullion banks is merely offering one more opportunity for "the people" to protect themselves and their wealth prior to a now inevitable crash of the global financial system.</div>
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West Much Closer To Collapse As Gold War Continues To Rage</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/2_West_Much_Closer_To_Collapse_As_Gold_War_Continues_To_Rage_files/King%20World%20News%20-%20West%20Much%20Closer%20To%20Collapse%20As%20Gold%20War%20Continues%20To%20Rage.jpg" style="color: #797979;"></a>On the heels of the Cypriot Finance Minister quitting and continued volatility in gold, today acclaimed money manager Stephen Leeb told King World News the West is much closer to collapse than it was...</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/1_Sinclair_-_Something_Has_Western_Central_Banks_Terrified.html">Sinclair - Something Has Western Central Banks Terrified</a></div>
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T<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/1_This_Will_Signal_The_Final_Collapse_%26_End_Game_Has_Started.html" style="color: black;" target="_blank">his Will Signal The Final Collapse & End Game Has Started</a></div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/1_This_Will_Signal_The_Final_Collapse_%26_End_Game_Has_Started_files/King%20World%20News%20-%20This%20Will%20Signal%20The%20Final%20Collapse%20%26%20End%20Game%20Has%20Started.jpg" style="color: #797979;"></a>Today John Embry spoke with King World News about what will signal to investors that the final collapse and end game is upon us. Below is what Embry, chief investment strategist at Sprott Asset...</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-8457304351161619862013-03-19T19:55:00.000-05:002013-03-19T19:55:54.826-05:00Gold, REAL MONEY, the root of all that is good.<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; color: #333333; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;"><i><b>Thinking is America’s national disability. I’m all for anything that provokes Americans to think. </b></i></span><br />
<span style="background-color: white; color: #333333; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; line-height: 18px;"> -Paul Craig Roberts</span><br />
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Today, we [the people] have a President of the United States that believes <span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', serif; font-size: 15px; line-height: 23px;">"</span>the wealthiest Americans and the biggest corporations<span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', serif; font-size: 15px; line-height: 23px;">" </span>should pay their "fair share" in taxes so that the government can "invest" that fair share into the futures of those less fortunate than "the rich"...and thereby lead them into prosperity.<br />
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There are those in our society today that will have you believe that being successful in business is "unfair" to those that are failures in business.<br />
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There are those in our society today that would have you believe "wealth" created by being successful in business should be shared among those who have little or no wealth, because they have been <i>unsuccessful</i> in business and that is not fair.<br />
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There are those in our society that firmly believe that "money is the root of all evil". "Big Business is bad business". And if we took a "fair share" of that money away from Big Business and the Rich, we could use it to eliminate the evil of poverty and have everybody live happily ever after.<br />
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If only it were that simple. If only robbing Peter to pay Paul was the key to everlasting prosperity. It is not.<br />
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Why is our growing society of Have-nots [poor] in the World being repeatedly told that the Haves [rich] are evil and the cause for the poor being underpaid, unsuccessful, and unappreciated in society? Could it be that the poor just simply don't know how to be successful and wealthy?<br />
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How many BILLIONS of the Rich's wealth has been given to the poor over the last 50 years in this country? In the World? Have the poor become rich and successful over that span of time? Are there less Poor today in America and the World than 50 years ago?<br />
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If anything, taking from the Rich to give to the Poor has only CREATED MORE POOR!<br />
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Money IS NOT the root of all evil. I suspect a lack of education may be... <br />
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Not knowing how to be successful with money if one had it, coupled with a lack of respect for where it truly comes from, is likely a larger cause of perpetual poverty than Big Business and the Rich not paying their "fair share" to enable those who wish to escape poverty to do so. Few do...as poverty has proven, over time, to only breed more poverty. It is foolish, and naive to "blame the rich" for the "evil" in our society.<br />
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In her book "Atlas Shrugged", a 1957 novel of philosophical revolution that takes place in the United States, Ayn Rand asks and answers the question, "Is money the root of all evil?"<br />
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[bold emphasis is mine]<br />
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Part II, Chapter 2, page 410;<br />
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Francisco d'Anconia, speaking:<br />
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"So you think that money is the root of all evil?" said Francisco d'Aconia. "Have you ever asked what is the root of money? Money is a tool of exchange, which can't exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force.<b> Money is made possible only by the men who produce.</b> Is this what you consider evil?</div>
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"When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. <b>Those pieces of paper, which should have been gold, are a token of honor – your claim upon the energy of the men who produce.</b> Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money. Is this what you consider evil?</div>
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"Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions – and you'll learn that <b>man's mind is the root of all the goods produced and of all the wealth that has ever existed on earth.</b></div>
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"But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. <b>Wealth is the product of man's capacity to think.</b> Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? <b>Money is made – before it can be looted or mooched – made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can't consume more than he has produced.</b></div>
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"To trade by means of money is the code of the men of good will. Money rests on the axiom that every man is the owner of his mind and his effort. Money allows no power to prescribe the value of your effort except by the voluntary choice of the man who is willing to trade you his effort in return. Money permits you to obtain for your goods and your labor that which they are worth to the men who buy them, but no more. Money permits no deals except those to mutual benefit by the unforced judgment of the traders. <b>Money demands of you the recognition that men must work for their own benefit, not for their own injury, for their gain, not their loss – the recognition that they are not beasts of burden, born to carry the weight of your misery – that you must offer them values, not wounds – that the common bond among men is not the exchange of suffering, but the exchange of goods.</b> Money demands that you sell, not your weakness to men's stupidity, but your talent to their reason; it demands that you buy, not the shoddiest they offer, but the best your money can find. And when men live by trade – with reason, not force, as their final arbiter – it is the best product that wins, the best performance, then man of best judgment and highest ability – and the degree of a man's productiveness is the degree of his reward. This is the code of existence whose tool and symbol is money. Is this what you consider evil?</div>
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"But money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. It will give you the means for the satisfaction of your desires, but it will not provide you with desires. Money is the scourge of the men who attempt to reverse the law of causality – the men who seek to replace the mind by seizing the products of the mind.</div>
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<b>"Money will not purchase happiness for the man who has no concept of what he wants; money will not give him a code of values, if he's evaded the knowledge of what to value, and it will not provide him with a purpose, if he's evaded the choice of what to seek. Money will not buy intelligence for the fool, or admiration for the coward, or respect for the incompetent. </b>The man who attempts to purchase the brains of his superiors to serve him, with his money replacing his judgment, ends up by becoming the victim of his inferiors. The men of intelligence desert him, but the cheats and the frauds come flocking to him, drawn by a law which he has not discovered: that no man may be smaller than his money. Is this the reason why you call it evil?</div>
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<b>"Only the man who does not need it, is fit to inherit wealth – the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him. But you look on and you cry that money corrupted him. Did it? Or did he corrupt his money? Do not envy a worthless heir; his wealth is not yours and you would have done no better with it. Do not think that it should have been distributed among you; loading the world with fifty parasites instead of one would not bring back the dead virtue which was the fortune. Money is a living power that dies without its root. Money will not serve that mind that cannot match it</b>. Is this the reason why you call it evil?</div>
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"Money is your means of survival. The verdict which you pronounce upon the source of your livelihood is the verdict you pronounce upon your life. If the source is corrupt, you have damned your own existence. Did you get your money by fraud? By pandering to men's vices or men's stupidity? By catering to fools, in the hope of getting more than your ability deserves? By lowering your standards? By doing work you despise for purchasers you scorn? If so, then your money will not give you a moment's or a penny's worth of joy. Then all the things you buy will become, not a tribute to you, but a reproach; not an achievement, but a reminder of shame. Then you'll scream that money is evil. Evil, because it would not pinch-hit for your self-respect? Evil, because it would not let you enjoy your depravity? Is this the root of your hatred of money?</div>
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<b>"Money will always remain an effect and refuse to replace you as the cause. Money is the product of virtue, but it will not give you virtue and it will not redeem your vices. Money will not give you the unearned, neither in matter nor in spirit.</b> Is this the root of your hatred of money?</div>
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"Or did you say it's the love of money that's the root of all evil? To love a thing is to know and love its nature. To love money is to know and love the fact that money is the creation of the best power within you, and your passkey to trade your effort for the effort of the best among men. It's the person who would sell his soul for a nickel, who is the loudest in proclaiming his hatred of money – and he has good reason to hate it. The lovers of money are willing to work for it. They know they are able to deserve it.</div>
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<b>"Let me give you a tip on a clue to men's characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it.</b></div>
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<b>"Run for your life from any man who tells you that money is evil. That sentence is the leper's bell of an approaching looter. So long as men live together on earth and need means to deal with one another – their only substitute, if they abandon money, is the muzzle of a gun.</b></div>
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<b>"But money demands of you the highest virtues, if you wish to make it or to keep it. Men who have no courage, pride, or self-esteem, men who have no moral sense of their right to their money and are not willing to defend it as they defend their life, men who apologize for being rich – will not remain rich for long. They are the natural bait for the swarms of looters that stay under rocks for centuries, but come crawling out at the first smell of a man who begs to be forgiven for the guilt of owning wealth. They will hasten to relieve him of the guilt – and of his life, as he deserves.</b></div>
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<b>"Then you will see the rise of the double standard – the men who live by force, yet count on those who live by trade to create the value of their looted money – the men who are the hitchhikers of virtue. In a moral society, these are the criminals, and the statutes are written to protect you against them. But when a society establishes criminals-by-right and looters-by-law – men who use force to seize the wealth of disarmed victims – then money becomes its creators' avenger. Such looters believe it safe to rob defenseless men, once they've passed a law to disarm them. But their loot becomes the magnet for other looters, who get it from them as they got it. Then the race goes, not to the ablest at production, but to those most ruthless at brutality. When force is the standard, the murderer wins over the pickpocket. And then that society vanishes, in a spread of ruins and slaughter.</b></div>
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<b>"Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion – when you see that in order to produce, you need to obtain permission from men who produce nothing – when you see that money is flowing to those who deal, not in goods, but in favors – when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed. Money is so noble a medium that it does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot.</b></div>
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<b>"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it becomes, marked: 'Account overdrawn.'</b></div>
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"When you have made evil the means of survival, do not expect men to remain good. Do not expect them to stay moral and lose their lives for the purpose of becoming the fodder of the immoral. Do not expect them to produce, when production is punished and looting rewarded. Do not ask, 'Who is destroying the world?' You are.</div>
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"You stand in the midst of the greatest achievements of the greatest productive civilization and you wonder why it's crumbling around you, while you're damning its life-blood – money. You look upon money as the savages did before you, and you wonder why the jungle is creeping back to the edge of your cities. Throughout men's history, money was always seized by looters of one brand or another, but whose method remained the same: to seize wealth by force and to keep the producers bound, demeaned, defamed, deprived of honor. That phrase about the evil of money, which you mouth with such righteous recklessness, comes from a time when wealth was produced by the labor of slaves – slaves who repeated the motions once discovered by somebody's mind and left unimproved for centuries. So long as production was ruled by force, and wealth was obtained by conquest, there was little to conquer. Yet through all the centuries of stagnation and starvation, men exalted the looters, as aristocrats of the sword, as aristocrats of birth, as aristocrats of the bureau, and despised the producers, as slaves, as traders, as shopkeepers – as industrialists.</div>
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<b>"To the glory of mankind, there was, for the first and only time in history, a country of money – and I have no higher, more reverent tribute to pay to America, for this means: a country of reason, justice, freedom, production, achievement. For the first time, man's mind and money were set free, and there were no fortunes-by-conquest, but only fortunes-by-work, and instead of swordsmen and slaves, there appeared the real maker of wealth, the greatest worker, the highest type of human being – the self-made man – the American industrialist.</b></div>
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<b>"If you ask me to name the proudest distinction of Americans, I would choose – because it contains all the others – the fact that they were the people who created the phrase 'to make money'. No other language or nation had ever used these words before; men had always thought of wealth as a static quantity – to be seized, begged, inherited, shared, looted, or obtained as a favor. Americans were the first to understand that wealth has to be created. The words 'to make money' hold the essence of human morality.</b></div>
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"Yet these were the words for which Americans were denounced by the rotted cultures of the looters' continents. Now the looters' credo has brought you to regard your proudest achievements as a hallmark of shame, your prosperity as guilt, your greatest men, the industrialists, as blackguards, and your magnificent factories as the product and property of muscular labor, the labor of whip-driven slaves, like the pyramids of Egypt. The rotter who simpers that he sees no difference between the power of the dollar and the power of the whip, ought to learn the difference on his own hide – as, I think, he will.</div>
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<b>"Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out."</b></div>
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<b>"Those pieces of paper, which should have been gold, ..."</b></div>
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<span style="font-family: inherit;">Gold, REAL MONEY, the root of all that is good.</span></div>
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<span style="font-family: inherit;">The US Dollar [Federal Reserve Note], fiat money, the root of all that is evil. </span></div>
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<span style="font-family: inherit;">And where does this evil reside? Within the banks of the World, THE TRUE ROOT OF ALL EVIL.</span></div>
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<span style="font-family: inherit;">Wealth is created by the effort of every honest man to produce. Wealth is not created by a printing press in the basement of a bank, or by a few strokes on a computer keyboard.</span></div>
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<span style="font-family: inherit;">Do <span style="color: #333333; line-height: 23px;">"</span><span style="background-color: transparent;">the wealthiest Americans and the biggest corporations</span><span style="color: #333333; line-height: 23px;">"</span><span style="background-color: transparent;"> pay their "fair share" in taxes?</span></span></div>
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<span style="font-family: inherit;">You decide. <span style="color: #181818; line-height: 18px; text-align: justify;">Let’s consider some facts just published by </span><em style="color: #181818; line-height: 18px; text-align: justify;">The Associated Press:</em></span></div>
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<i>“. . . <span style="text-decoration: underline;">wealthy families already are paying some of their biggest federal tax bills in decades</span> even as the rest of the population continues to pay at historically low rates;</i></div>
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<i>“. . . average<span style="text-decoration: underline;"> tax bills for high-income families rarely have been higher</span>since the Congressional Budget Office began tracking the data in 1979. Middle- and low-income families aren't paying as much as they used to;</i></div>
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<i>“For 2013, families with incomes in the top <span style="text-decoration: underline;">20 percent of the nation will pay an average of 27.2 percent</span> of their income <span style="text-decoration: underline;">in federal taxes</span>…;</i></div>
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<i>“The <span style="text-decoration: underline;">top 1 percent</span> of households, those with incomes averaging $1.4 million, <span style="text-decoration: underline;">will pay an average of 35.5 percent</span>;</i></div>
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<i>“<span style="text-decoration: underline;">Those tax rates</span>, which include income, payroll, corporate and estate taxes, <span style="text-decoration: underline;">are among the highest since 1979</span>;</i></div>
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<i>“<span style="text-decoration: underline;">The average family in the bottom 20 percent of households won't pay any federal taxes</span>. Instead, many families in this group will get payments from the federal government by claiming more in credits than they owe in taxes, including payroll taxes. That will give them <span style="text-decoration: underline;">a negative tax rate</span>; and</i></div>
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<i><span style="text-decoration: underline;">The top 20% pay 71.8% “of the nation’s taxes</span>.” <span style="font-size: xx-small;">(Stephen Ohlemacher, “Tax Bills For Rich Families Approach 30-Year High,” <a href="http://hosted.ap.org/dynamic/stories/U/US_TAXING_THE_RICH?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-03-03-12-55-15" style="color: #003366;">The Associated Press</a>, 3/3/13)</span></i></div>
<span style="font-family: inherit;">Are "the wealthiest Americans and the biggest corporations" and their "money" the "root of all evil"?</span><br />
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<span style="font-family: inherit;">NO!</span></div>
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<span style="font-family: inherit;">Are the banks that conjure "money" out of thin air and loan it to those "seeking" wealth the "root of all evil"?</span></div>
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<span style="font-family: inherit;">YES!</span></div>
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<b style="font-family: verdana, arial, helvetica, clean, sans-serif; font-size: 13px; line-height: 18.03125px;">"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it becomes, marked: 'Account overdrawn.'</b></div>
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Stop blaming the working Rich for the perils of our society, and begin to put the blame where it rightfully belongs...with the banks!</div>
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Got Gold?</div>
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Got Silver?</div>
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Be good, get some.</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-53032175050688271712013-02-26T15:46:00.000-05:002013-02-27T20:20:47.079-05:00Gold And Silver Rally As Bernanke Promises Support of US Treasury Debt<div dir="ltr" style="text-align: left;" trbidi="on">
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Did I hear Ben Bernanke say, "Buy gold and short bonds" during his testimony in the Senate today?<br />
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<b style="font-family: tahoma, arial, sans-serif; font-size: 13px;">Bernanke plays down easing concerns </b></div>
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<i>By Robin Harding in Washington<br />February 26, 2013 3:02 pm</i></div>
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<i>Ben Bernanke played down concerns about quantitative easing limits in dovish testimony to Congress that suggests the US Federal Reserve will continue to purchase assets.</i></div>
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<i>The Fed chairman systematically went through the costs and risks of its third round of quantitative easing, known as QE3, and argued that they were either offset by other benefits or else the central bank had them under control.</i></div>
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<i>Mr Bernanke’s testimony to the Senate banking committee resets the Fed’s public stance after minutes of its recent meetings showed that “many” on the rate-setting Federal Open Market Committee are concerned about the costs and risks of QE3.</i></div>
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<i>His remarks suggest that those concerns are not so great that the Fed might cut short QE3 – under which it is buying assets at a pace of $85bn a month – before meeting its goal of a substantial improvement in the labour market.</i></div>
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<i>Mr Bernanke said that the benefits of asset purchases are clear. “Monetary policy is providing important support to the recovery while keeping inflation close to the FOMC’s 2 per cent objective.”</i></div>
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<i><a href="http://www.ft.com/intl/cms/s/0/79b4fe3c-8023-11e2-adbd-00144feabdc0.html#axzz2M1TpBjHs" style="color: #666666; font-weight: bold; text-decoration: initial;">More…</a></i></div>
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The Fed Chairman is a total pro. He spoke for two hours and said almost nothing.</div>
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UBS: "Many observers assume that, once bad debt is purchased by the central bank, the debt crisis is solved for good." they are wrong.<br />
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In 1966, Alan Greenspan accurately observed: “In the absence of gold, there is no way to protect savings from confiscation through inflation. This is the shabby secret of the welfare state’s tirade against gold. If everyone decided to convert his bank deposits into gold and silver… private assets would be preserved but Government created credit would be become worthless.”<br />
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Everyone should take the time to read Mr. Greenspan’s original writing. Here it is:<br />
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<a href="http://www.321gold.com/fed/greenspan/1966.html" rel="nofollow" style="background-color: #eeeeee; color: #3c78a7; font-family: Arial, Helvetica; font-size: 12px; line-height: 20.578125px; margin: 0px; padding: 0px; text-decoration: initial;">http://www.321gold.com/fed/greenspan/1966.html</a><span style="background-color: #eeeeee; color: #333333; font-family: Arial, Helvetica; font-size: 12px; line-height: 20.578125px;"> </span><br />
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This is very insightful and informative.</div>
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Fed is 'nowhere close' to raising rates and tightening, Rickards tells Kitco News</h1>
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<span class="submitted" style="color: #777777; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 0.8em;">Submitted by cpowell on Tue, 2013-02-26 00:43.</span><span class="taxonomy" style="color: #777777; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 0.8em;"> Section: <a href="http://gata.org/taxonomy/term/2" rel="tag" style="color: #777777; text-decoration: initial;" title="">Daily Dispatches</a></span><br />
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4:35p PT Monday, February 25, 2013</div>
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Dear Friend of GATA and Gold:</div>
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Market analyst and hedge fund manager James G. Rickards, author of the best-selling book "Currency Wars," today tells Kitco News' Daniela Cambone that the Federal Reserve is "nowhere close" to raising interest rates and tightening monetary conditions. Rickards adds that gold's volatility lately has been the dollar's and that gold simply should be purchased and socked away because it will do fine over time. The interview is 21 minutes long and can be viewed at Kitco News here:</div>
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<a href="http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards_1" style="color: #777777; text-decoration: initial;" title="http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards_1">http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards...</a></div>
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CHRIS POWELL, Secretary/Treasurer<br />
Gold Anti-Trust Action Committee Inc.</div>
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<span style="font-size: large;"><b>Maguire - Stunning 225 Tons of Physical Gold Bought By CBs</b></span></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today whistleblower Andrew Maguire told King World News that Eastern central banks have taken a massive 225 tons out of the physical gold market on this recent takedown. This is the first in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the ongoing gold and silver war which continues to rage.</span></div>
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Eric King: “Give me an idea of the amount of tonnage being purchased on this decline.”</div>
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Maguire: <span class="style_2" style="color: black; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-style: italic; opacity: 1;">“If you look at the daily tonnage being drawn down, we’re (now) looking at 20 to 30 tons per day of real allocations in dollar and euro gold. Shanghai delivery volumes have been extremely large as well on a daily basis. That’s just what we see clearing here through London and Shanghai....</span></div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/22_Maguire_-_Stunning_225_Tons_of_Physical_Gold_Bought_By_CBs.html">Continue reading the Andrew Maguire interview</a></div>
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<span style="font-size: large;"><b>Gold & Silver Smash Orchestrated By The BIS</b></span></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today whistleblower Andrew Maguire told King World News that that the Bank for International Settlements (BIS) orchestrated this latest takedown in gold and silver. Maguire also stated there is now a major dislocation in the gold and silver markets that is about to blow up. This is the second in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the ongoing gold and silver war which continues to rage. Below is Part II of Maguire’s extraordinary interview.</span></div>
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<span class="style_1" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Whistleblower Andrew Maguire: </span>“The gold and silver markets have become virtual markets. There is no physical aspect, essentially, to the way they trade on an intraday basis. Extremely large volumes of synthetic supply are just created and exchanged. That’s primarily through the bullion banks, which also have exposure to the physical market, and the managed money and the specs. </div>
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So when you look at the COMEX, it’s not a delivery market. It’s actually no more than a casino. The price of real physical gold in the actual world markets is, by default, set at the margin because of this incredible leverage. It bears absolutely no relationship to the real, unleveraged supply/demand fundamentals. </div>
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But here is what we are actually witnessing now: This dislocation is about to blow up....</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/22_Whistleblower_-_Gold_%26_Silver_Smash_Orchestrated_By_The_BIS.html">Continue reading the interview with whistleblower Andrew Maguire</a></div>
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<span style="font-size: large;"><b>Stunning $24 Premiums For Gold In Shanghai</b></span></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today whistleblower Andrew Maguire spoke with King World News about the stunning premiums being paid in Shanghai for gold, and what price investors and traders need to watch to see buy stops triggered on the upside in the gold market. This is the third and final in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the ongoing gold and silver war which continues to rage. Below is Part III of Maguire’s extraordinary interview.</span></div>
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<span class="style_1" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Whistleblower Andrew Maguire: </span>“We were already hearing rumors two weeks ago of another CME broker default (when gold was pushing $1,700), and I think something had to be done. Up until the Monday when China went on holiday, these dips were being aggressively bought, forcing the bullion banks on the bid to meet every allocation.</div>
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This is why gold couldn’t break down below the mid-$1,650s. So what did they (bullion banks) do? They waited until the paper markets had no competition. Waited until China was on holiday and most of Asia was closed, and then they targeted absolutely visible long stops. </div>
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This (subsequent action) is drawing in auto-traded, managed money short interest, and essentially this is what they have started to cover into....</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/23_Maguire_-_Stunning_%2424_Premiums_For_Gold_In_Shanghai.html">Continue reading the whistleblower Andrew Maguire interview</a></div>
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The entire KWN audio interview with Andrew Maguire is available <a href="http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html">HERE</a></div>
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<a href="http://www.zerohedge.com/news/2013-02-26/februarys-strange-divergence-precious-metals">February's Strange Divergence In Precious Metals</a></h1>
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<a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;" title="View user profile."><img alt="Tyler Durden's picture" src="http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg" style="border: 0px; height: auto; max-width: 100%;" title="Tyler Durden's picture" /></a></div>
<span class="submitted" style="-webkit-text-size-adjust: auto; color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 0.8em; font-weight: normal; line-height: 17.328125px; margin-bottom: 5px; width: auto;">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;">Tyler Durden</a> on 02/26/2013 13:38 -0500</span><br />
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<span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;">February has been an odd month for precious metals to say the least. On-again, off-again fears of Bernanke removing the punchbowl </span></span><em style="-webkit-text-size-adjust: auto; color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; font-weight: normal; line-height: 17.328125px;">(and endless sell-side strategists discussing Great Rotations and the end of the gold cycle)</em><span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;"> have led to prices for gold and silver sliding notably. However, while all this price deterioration has been going on, demand for physical gold and silver has surged - entirely disconnecting from January's apparent demand-to-price correlation - and </span></span><em style="-webkit-text-size-adjust: auto; color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; font-weight: normal; line-height: 17.328125px;">Silver set to <a href="http://www.zerohedge.com/news/2013-01-29/silver-eagle-sales-surge-all-time-record-january" style="color: #666666; text-decoration: initial;">break all-time record demand highs for a February</a></em><span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;">. We know who was buying in January, as </span></span><a href="http://www.businesstimes.com.sg/breaking-news/world/russia-turkey-add-gold-holdings-again-jan-imf-20130223" style="-webkit-text-size-adjust: auto; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; font-weight: normal; line-height: 17.328125px; text-decoration: initial;">Reuters reports</a><span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;"> </span></span><strong style="-webkit-text-size-adjust: auto; color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; font-weight: normal; line-height: 17.328125px;">Russia and Turkey were significantly adding to their bullion reserves</strong><span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;">; and while the divergence between demand and price coincided with Chinese New Year - leaving a large marginal buying nation on the sidelines - we suspect the drop is more to do with hedge fund reflexive selling - now caught offside. It seems </span></span><strong style="-webkit-text-size-adjust: auto; color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; font-weight: normal; line-height: 17.328125px;">at least one smart player was using lower prices to build their stack</strong><span style="font-family: Lucida Grande, Verdana, sans-serif; font-size: x-small;"><span style="line-height: 17.328125px;">; manipulation or no manipulation.</span></span><br />
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Cumulative demand for Gold vs Spot price... <em>(corrected)</em></div>
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<a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/02/20130226_gold_2.jpg" style="color: #666666; text-decoration: initial;"><img height="436" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/02/20130226_gold_2_0.jpg" style="border: 0px; height: auto; max-width: 100%;" width="600" /></a></div>
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Cumulative demand for Silver vs Spot price <em>(corrected)</em></div>
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and this month looks set to see the biggest demand for silver (for a Feb) ever...</div>
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<a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/02/20130226_silver1.jpg" style="color: #666666; text-decoration: initial;"><img height="433" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/02/20130226_silver1_0.jpg" style="border: 0px; height: auto; max-width: 100%;" width="600" /></a></div>
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<em>Source: Bloomberg and US Mint</em></div>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Holy Hedge Fund Shorting: 'Game On' For Gold And Silver</span></h1>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">by </span><a href="http://seekingalpha.com/author/dave-kranzler" sasource="about_name" style="border: 0px; color: #024999; font-family: arial, helvetica, clean, sans-serif; font-size: 16px; font-weight: 700; line-height: 19px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Dave Kranzler</a>, <a href="http://www.truthingold.blogspot.com/" rel="nofollow" style="background-color: #f4f4f4; border: 0px; color: #024999; font-family: arial, helvetica, clean, sans-serif; font-size: 12px; line-height: 19px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">The Golden Truth</a></div>
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<strong style="border: 0px; color: black; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The emergence of technical fund and speculative short selling has created the finishing touches to a market structure set up that is good to go in gold and maybe in silver as well... The bottom line is that an important price low is being put in, if it has not been seen already</strong>. - Ted Butler</div>
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I wanted to follow up on my article last week that analyzed the Comex Commitment of Traders (COT) for gold futures. I had suggested the likelihood that the recent increase in the gold futures short position of the large hedge funds, and the concomitant large reduction in the net short position of the commercial traders (mainly the bullion banks), was a signal that this vicious price correction in gold/silver is nearly over.</div>
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The COT report released Friday (through Tuesday's cut-off day) was nothing short of stunning. I knew the hedge funds were piling onto the short side of gold and silver, and that's why the metals have been getting slaughtered recklessly like this. But the increase in the hedge fund gold short position is unprecedented, as far as I know. In other words, I can only recall one or two times when even the big banks increased their gold short by this much.</div>
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Let's look at the numbers -- here's the COT report in table format from the <a href="http://www.gotgoldreport.com/got-gold-blog/" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">Got Gold Report</a>:</div>
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(<em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">click to enlarge</em>)<img hspace="6" src="http://static.cdn-seekingalpha.com/uploads/2013/2/24/536584-13617578196256871-Dave-Kranzler.png" style="border: 0px; display: inline; max-width: 480px; outline: 0px; overflow: visible; padding: 0px;" vspace="6" /></div>
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The red numbers that I've circled above represent the increase in Comex gold short interest for the large hedge fund and retail trader (small specs) categories. With gold, the hedge funds increased their gold short by 23.7K, while the banks (Producer/Merchant and Swap Dealers) covered 28.5K. The small specs increased their short position by an incredible 18.6%, or 5.3K.</div>
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Here's a graph going back to the last Friday in April 2005, which shows the weekly hedge fund gross short interest, the big bank <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">net</em> short interest and the price of gold:</div>
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<em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">(click to enlarge)</em><a href="http://static.cdn-seekingalpha.com/uploads/2013/2/24/536584-13617582852335653-Dave-Kranzler_origin.png" rel="lightbox" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;"><img hspace="6" src="http://static.cdn-seekingalpha.com/uploads/2013/2/24/536584-13617582852335653-Dave-Kranzler.png" style="border: 0px; display: inline; max-width: 480px; outline: 0px; overflow: visible; padding: 0px;" vspace="6" /></a></div>
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As you can see, the hedge fund short position is at a record level. I show the big bank net short position because it captures both the magnitude of short-covering and the increased gross long position of the banks. The black circles show the points in time when the hedge fund gross short position and the bank net short position converge in magnitude. You can see what happens to the price of gold when this dynamic occurs.</div>
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<a href="http://seekingalpha.com/article/1222581-holy-hedge-fund-shorting-game-on-for-gold-and-silver">READ MORE</a></div>
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Gold Capitulation</div>
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<b>by <a href="http://www.24hgold.com/english/contributor-gold-silver-adam-hamilton.aspx?contributor=Adam%20Hamilton" style="color: #4e4e4e; text-decoration: initial;" target="_blank">Adam Hamilton</a> - <i><a href="http://zealllc.com/" style="color: #4e4e4e; text-decoration: initial;" target="_blank">Zeal Intelligence</a></i></b></div>
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Published : February 23rd, 2013</div>
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The climaxing day of any capitulation marks peak bearishness, when everyone is utterly convinced the falling price will keep selling off indefinitely.And indeed on Wednesday, we saw a rash of hyper-bearish predictions for gold.Many analysts claimed its secular bull was ending.I had to chuckle at that, as its latest interim high was 18 months earlier in August 2011.Highs are <a href="http://www.zealllc.com/2011/goldob.htm">when to be bearish</a>, not new lows!<br />
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This weeks capitulation was the end result of a multi-month decay process that began with alternative investments falling out of favor in November.Remember that gold and the SPX had a 0.55 positive correlation between January and October 2012.From November to this week, that reversed totally to a much stronger 0.74negative correlation!The levitating stock markets melt-up rally really weighed on gold sentiment.<br />
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That alone is a very bullish omen.The general stock markets are topping, due to roll over into a <a href="http://www.zealllc.com/2012/bulltop.htm">new cyclical bear</a>.The SPXs cyclical bull that began in March 2009 is long in the tooth.As of this week it had powered 126.3% higher over 47 months, far bigger and longer than the mid-secular-bear cyclical-bull average of a doubling over 35months.And <a href="http://www.zealllc.com/2013/highcomp.htm">complacency</a> is off the charts, the primary topping indicator.<br />
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So the probabilities overwhelmingly favor a major selloff in the stock markets, likely a new cyclical bear that will cut the SPX in half over a couple years.Just as alternative investments fall out of favor when stock bulls top, they regain favor in a big way as stock bears deepen.This dynamic is certainly very bullish for gold today, which has been <a href="http://www.zealllc.com/2012/goldstbr.htm">a proven performer</a> in this secular stock bears past cyclical bears.<br />
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But even without the prospects for a new stock bear, golds technicals still look very bullish despite this weeks capitulation.In the chart above note that gold has been<a href="http://www.zealllc.com/2013/goldyng.htm">consolidating high</a>, trading in a range between roughly $1550 and $1775.Despite all the technical carnage this week, gold still remains above its longstanding consolidation support!From these same levels last summer, a major rally was born.<br />
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Ive been studying and trading the markets for decades, and I would love to be able to predict capitulations.Seeing them coming would make trading a loteasier.Normally you want to buy low late in a correction, and the majority of corrections dont end in capitulations.But for the exceptions that do, the absolute best time to buy is that very capitulation day.As fear peaks, prices are at their cheapest.<br />
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But unfortunately capitulations are inherently unpredictable.Much of the time a long demoralizing selloff necessary to fuel a capitulation doesnt experience a proper spark before the next upleg begins.So if you waited for a capitulation that never came before buying, youd miss the low prices.Each capitulation requires a complex intertwined mix of events, technicals, and sentiment that are unique to that time.<br />
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So the only rational strategy for bulls is to buy cheap late in corrections without waiting for capitulations that usually dont come.But when they do, simply steel yourself and weather the brief plunge.They are a great test of your contrarian mettle, separating those who can really walk the walk from those who merely talk the talk.If gold looks like a bargain before a capitulation, it is far more attractive after one.<br />
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<a href="http://www.24hgold.com/english/news-gold-silver-gold-capitulation.aspx?article=4257222084G10020&redirect=false&contributor=Adam+Hamilton">READ MORE</a></div>
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U.S. Already in Technical Default-Gregory Mannarino</h2>
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<b style="margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;">By Greg Hunter’s <a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">USAWatchdog.com</a></span></b><a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank"><span style="color: black; margin: 0px; padding: 0px;"> </span></a></div>
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<span style="color: black; margin: 0px; padding: 0px;">Analyst Gregory Mannarino is worried about the out of control debt in America. Mannarino says, <b style="margin: 0px; padding: 0px;">“The United States is already in technical default regarding its debt because if it were not for the Fed buying all this debt, we’d be in actual default, which is coming.” </b>When the bond market bubble blows up, Mannarino thinks,<b style="margin: 0px; padding: 0px;"> “People are going to be destroyed here—destroyed from a financial standpoint.” <span id="more-10048" style="margin: 0px; padding: 0px;"></span></b>It is an official “open ended” policy for the Fed to buy $85 billion in debt each and every month. Mannarino says, <b style="margin: 0px; padding: 0px;">“This is a very dangerous game the Fed is playing. It is very scary. They are creating a greater and greater imbalance between the supply and demand for the U.S. dollar. . . . Inflation is starting to kick in, and it’s just the beginning.” </b>Join Greg Hunter as he goes One-on-One with Gregory Mannarino from <a href="http://traderschoice.net/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">TradersChoice.net</a>.</span></div>
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Gold Has One Way to Go-Up-Peter Schiff</h2>
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<b style="margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;">By Greg Hunter’s <a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">USAWatchdog.com</a></span></b><a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank"><b style="margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;"> </span></b></a></div>
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<span style="color: black; margin: 0px; padding: 0px;">Money manager Peter Schiff predicts, <b style="margin: 0px; padding: 0px;">“We are headed for a monetary crisis, a dollar crisis. . . . Money supplies are going to explode, and gold supplies are going to be constricted.”</b> According to Schiff, that means only one thing,<b style="margin: 0px; padding: 0px;">“The price of gold has one way to go in the long term, and that is up.” <span id="more-10018" style="margin: 0px; padding: 0px;"></span></b>Schiff says the reason why it hasn’t ignited is because, <b style="margin: 0px; padding: 0px;">“People are buying into this myth the economy is recovering. . . . We’re facing a worse crisis than ever.”</b> Schiff thinks the real reason why the federal government is suing the S&P rating agency is because it downgraded U.S. Treasuries last year. Schiff says, <b style="margin: 0px; padding: 0px;">“The reason why they’re being sued is not only because of what they did but to send a message to the other ratings agencies that you better not downgrade U.S. Treasuries.”</b> Schiff predicts, <b style="margin: 0px; padding: 0px;">“People who own Treasuries are going to lose a lot of money.”</b> Join Greg Hunter as he goes One-on-One with Peter Schiff of <a href="http://www.europacmetals.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">Euro Pacific Precious Metals</a>. </span></div>
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The Sequestration Debate Misses the REAL Issue</h1>
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<span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px;">Submitted by </span><a href="http://www.zerohedge.com/users/george-washington" style="background-color: white; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px; text-decoration: initial;">George Washington</a><span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px;"> on 02/25/2013 20:18 -0500</span></div>
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Sequestration means across-the-board cuts in government spending, <a href="http://www.cnn.com/2013/02/06/politics/cnn-explains-sequestration" style="color: #666666; text-decoration: initial;" target="_blank" title="split 50%-50%">split 50%-50%</a> between the military and domestic spending.</div>
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As this post will show, the hypocrisy surrounding the sequestration debate is stunning.</div>
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For example, president Obama says that sequestration is the GOP’s fault. But <a href="http://www.washingtonpost.com/opinions/bob-woodward-obamas-sequester-deal-changer/2013/02/22/c0b65b5e-7ce1-11e2-9a75-dab0201670da_print.html" style="color: #666666; text-decoration: initial;" target="_blank" title="Bob Woodward">Bob Woodward</a> and <a href="http://www.youtube.com/watch?feature=player_embedded&v=kj1y3q92sog" style="color: #666666; text-decoration: initial;" target="_blank" title="YouTube">YouTube</a> reveal that Obama supported sequestration from day one.</div>
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And Dems obviously want to slash military spending and protect domestic programs, while the GOP wants to slash entitlements and leave military spending as is.</div>
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But the whole sequestration debate <em>misses the bigger picture</em>: Tremendous savings can be wrung out of both military and domestic spending <em><strong>without reducing services to either</strong></em>.</div>
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<a href="http://www.zerohedge.com/contributed/2013-02-25/sequestration-debate-misses-real-issue">READ MORE</a></div>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" id="eow-title" style="-webkit-user-select: auto; background-color: transparent; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title="Remember when President Obama supported the sequester cuts?">Remember when President Obama supported the sequester cuts?</span></h1>
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<span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; line-height: 17.328125px;"><b> The hypocrisy surrounding the sequestration debate is stunning.</b></span><br />
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-27875816353075889102013-02-22T16:09:00.002-05:002013-02-23T19:01:22.335-05:00Attention Chicken Little: GOLD AND SILVER NOW FUELED FOR LIFT-OFF<div dir="ltr" style="text-align: left;" trbidi="on">
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The untold reality of gold and silver price controls</h1>
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BY <a href="http://www.resourceinvestor.com/author/dr-jeffrey-lewis" rel="author" style="-webkit-tap-highlight-color: rgb(170, 37, 38); background-color: transparent; color: #0a4869; margin: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">DR. JEFFREY LEWIS</a></div>
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February 15, 2013</div>
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Consider for a moment the remarkably high volume of COMEX contracts traded during the days when the spot prices for gold and/or silver were driven sharply lower.</div>
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An illusion of weakness tends to prevail in these situations because the majority of precious metal traders do not seem to understand the difference between a paper claim and the real thing, nor do they seem to realize that only paper contracts or claims are being sold when the price of the precious metals drops — not the actual metal itself. Basically, the futures contract seller cannot be forced to deliver physical metal, and so sellers can simply settle their profit or loss on the trade in cash.</div>
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Furthermore, the fact that such price drops are typically initiated by the dumping of huge swaths of paper contracts by proprietary traders working at giant bullion banks that are too big to bail and/or fail, makes them seem more like manipulative attempts to scare the precious metals market into a selling panic.</div>
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No one is actually selling real bullion during these allegedly “not-for-profit”-led precious metal sell-offs. Instead, the paper market is moving the metal prices as the tail seemingly wags the dog.</div>
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<a href="http://www.resourceinvestor.com/2013/02/15/the-untold-reality-of-gold-and-silver-price-contro?ref=hp">READ MORE</a></div>
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Silver price targeting and the will of central banks</h1>
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BY <a href="http://www.resourceinvestor.com/author/dr-jeffrey-lewis" rel="author" style="-webkit-tap-highlight-color: rgb(170, 37, 38); background-color: transparent; color: #0a4869; margin: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">DR. JEFFREY LEWIS</a></div>
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February 19, 2013</div>
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Perhaps one of the most frustrating things about trading the precious metals is that price action unfortunately directs perception. As <a href="http://www.gata.org/" style="-webkit-tap-highlight-color: rgb(170, 37, 38); background-color: transparent; color: #0a4869; margin: 0px; padding: 0px; vertical-align: baseline;" target="_blank">GATA's</a> Chris Powell has pointed out, movements in the price makes market commentary.</div>
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So, as soon as the price of silver drops, investors start to think that silver is heading down to $4 again. Conversely, when the price of silver rises, then they tend to think it must be a bubble. This cycle seems crazy considering the ever-depreciating value of the U.S. dollar.</div>
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Perhaps instead of looking at the price, investors could simply open up the COT report and follow the flow of paper futures and option contracts if they want to know the state of a currency or financial system.</div>
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<a href="http://www.resourceinvestor.com/2013/02/19/silver-price-targeting-and-the-will-of-central-ban?ref=hp&t=precious-metals">READ MORE</a></div>
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<a href="http://www.zerohedge.com/news/2013-02-19/silvers-four-hour-slamdown-window">Silver's Four Hour Slamdown Window</a></h1>
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<a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;" title="View user profile."><img alt="Tyler Durden's picture" src="http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg" style="border: 0px; height: auto; max-width: 100%;" title="Tyler Durden's picture" /></a></div>
<span class="submitted" style="color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 0.8em; line-height: 17.328125px; margin-bottom: 5px; width: auto;">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;">Tyler Durden</a> on 02/19/2013 12:44 -0500</span><br />
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As silver suffers its biggest one-day drop of the year, following a February of strange 'spikey' behavior, we thought it might be useful to show just what has been going on for the last few weeks. It appears that <strong>from the open of US equity trading pre-market to the close of Europe's equity markets (~0730ET to ~1130ET), Silver has been offered non-stop</strong>. Out of that four-hour window, on average, Silver has not moved in the month of February. With the <a href="http://www.zerohedge.com/news/2013-01-29/silver-eagle-sales-surge-all-time-record-january" style="color: #666666; text-decoration: initial;">dramatic nature of physical demand at the Mint</a>, this serial slam-down of Silver just seems a little too premeditated and predictable.</div>
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February has seen more than its fair share of price drops...</div>
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Bank short silver positions near record, risk squeeze</h1>
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BY <a href="http://www.resourceinvestor.com/author/alasdair-macleod" rel="author" style="-webkit-tap-highlight-color: rgb(170, 37, 38); background-color: transparent; color: #0a4869; margin: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">ALASDAIR MACLEOD</a></div>
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February 15, 2013</div>
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Last Friday night (European time) the Bank Participation Report for Feb. 5 was released. This showed that the U.S. banks reduced their net short gold position by 12,886 contracts over the month of January, while non-U.S. banks increased theirs by 2,887 contracts. This is evidence that the U.S. banking community is aggressively closing its short positions. A little of this was picked up by the non-bank commercials (mostly mines, refiners and processors) whose net shorts increased by 6,512 contracts to 56,573.</div>
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In silver they were unable to close down their positions, the U.S. banks increasing their exposure by 7,956 contracts over the month. The non-U.S. banks increased their short positions by 457 contracts, representing more than 42 million ounces between them to give a total short position of 277,810,000 ounces, the second highest on record.</div>
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The two charts below show the contrasting positions for U.S. banks in gold and silver.</div>
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<img alt="" src="http://media.resourceinvestor.com/resourceinvestor/article/2013/02/15/A1.png" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /> <img alt="" src="http://media.resourceinvestor.com/resourceinvestor/article/2013/02/15/A2.png" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></div>
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We can be sure that the massive short position in silver is causing difficulties for the banks concerned, because of the lack of physical supply. Therefore, the bullion banks have an exposure that appears to be out of control. While they frequently conduct bear raids (which are more successful in gold) they face the risk in silver of themselves becoming victims in a bear squeeze. Unusually, they have got themselves into this mess on a low silver price, and it is roughly double the short position when the silver price was over $40. This being the case, when silver turns up the banks are likely to be very badly squeezed, throwing up enormous losses. Meanwhile, the non-bank commercials have kept a level head and reduced their net short position by 2,268 contracts to 3,616.</div>
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It is against that background that gold and silver prices declined this week, with gold falling about $30 to the $1,630 level, and silver by $1.50 to the $30.25 level. Given that the bullion banks are trying to close down their positions, you would expect open interest to fall. Instead they have both risen, gold by more than 25,000 contracts and silver by 2,936 contracts, indicating that buyers are taking the opportunity to accumulate at these low prices.</div>
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<a href="http://www.resourceinvestor.com/2013/02/15/bank-short-silver-positions-near-record-risk-squee?ref=hp&t=precious-metals">READ MORE</a></div>
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Gold's Regular Morning Mugging</h1>
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A broad daylight crime-in-progress?</div>
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by Adam Taggart</div>
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Tuesday, February 19, 2013, 8:38 PM</div>
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The Evidence</h2>
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The precious metals are routinely sold off at or soon after the 8:20am EST morning open of the New York NYMEX exchange.</div>
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Below are the daily gold price charts (source: <a href="http://www.kitco.com/charts/historicalgold.html" style="color: #206282; font-weight: 700; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">Kitco</a>) for each Monday (or Tuesday, if Monday was a holiday) since early this year. The current day's gold price is noted by the bright green line. The morning takedown is highlighted by the orange oval.</div>
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Monday, January 7</h3>
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Gold is taken down $10 immediately after the 8am NYMEX open</div>
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<img alt="" height="381" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-1.7.13_0.jpg" style="border: 0px; height: 381px; width: 600px;" width="600" /></div>
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Monday, January 14</h3>
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A late breaking rally begun on the London exchange is quickly contained at the NYMEX open, and then beaten down nearly $10. Notice that the previous Friday's gold price action (the bright blue line) also showed the same behavior at the same time, but with an even more severe response once the NYMEX opened.</div>
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<img alt="" height="381" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-1.14.13.jpg" style="border: 0px; height: 381px; width: 600px;" width="600" /></div>
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Monday, January 21</h3>
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The 8am sell-off is smaller here (only a few $), but still noticeable.</div>
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<img alt="" height="381" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-1.21.13_0.jpg" style="border: 0px; height: 381px; width: 600px;" width="600" /></div>
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Monday, January 28</h3>
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Again, a sell-off happens after the 8am open. Note again how the previous Friday's action was similar, but even more severe.</div>
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<img alt="" height="380" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-1.28.13.jpg" style="border: 0px; height: 380px; width: 600px;" width="600" /></div>
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Monday, February 4</h3>
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Finally, an outlier. While there was an initial dip in the first hour of the NYMEX, the price took off soon after. So let's not count this one.</div>
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<img alt="" height="382" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-2.4.13.jpg" style="border: 0px; height: 382px; width: 600px;" width="600" /></div>
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Monday, February 11</h3>
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An immediate $14 drop at the 8am open. The downward momentum started in London, but the vertical downdraft once the NYMEX opened is unmistakable.</div>
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<img alt="" height="381" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-2.11.13.jpg" style="border: 0px; height: 381px; width: 600px;" width="600" /></div>
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Tuesday, February 19</h3>
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While less sharp, the steady selling clearly begins at 8am, beating gold down $12 to the technically significant $1,600 threshold.</div>
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<img alt="" height="383" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_gold-price-2.19.13.jpg" style="border: 0px; height: 383px; width: 600px;" width="600" /></div>
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Volume & Timing</h3>
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Running the above data by Chris, he noted two additional observations.</div>
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The first is that the price suppression is commencing increasingly in advance of the start of the NYMEX's <a href="http://en.wikipedia.org/wiki/Open_outcry" style="color: #206282; font-weight: 700; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">open outcry</a> process at <a href="http://www.cmegroup.com/trading_hours/metals-hours.html" style="color: #206282; font-weight: 700; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">8:20am EST</a> (i.e., how trading happens at the NYMEX). This suggests that it's being done on behalf of powerful players granted permission to circumvent the rules.</div>
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<img alt="" height="475" src="http://www.peakprosperity.com/sites/default/files/users/u14865/large_premarket-timing_0.png" style="border: 0px; height: 475px; width: 600px;" width="600" /></div>
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The second is that the volume levels in this pre-open trading is similar to that seen during active hours. That is very unusual in markets, and exceptionally high.</div>
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Gene Arensberg's GGR: Gold futures setup becoming bullish</h1>
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Tuesday, February 19, 2013</h2>
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HOUSTON – Yesterday we released a new <a href="http://www.gotgoldreport.com/2013/02/gold-cot-imbalanced-becoming-bullish.html" style="color: #080896;" target="_blank"><strong>Got Gold Report</strong> </a>to Subscribers covering recent changes in the positioning of the largest traders of futures on the COMEX in New York. In that report we detail that a majority of the recent selling pressure for gold futures has been coming from what many would say is an unusual source, if the record-high short positions taken by those traders is any guide (which it almost certainly is).</div>
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<a class="asset-img-link" href="http://treo.typepad.com/.a/6a0120a6002285970c017d412a7597970c-popup" style="color: #080896; float: left;"><img alt="20130219 - trading pit far" class="asset asset-image at-xid-6a0120a6002285970c017d412a7597970c" src="http://treo.typepad.com/.a/6a0120a6002285970c017d412a7597970c-320wi" style="border: 0px; margin: 0px 5px 5px 0px;" title="20130219 - trading pit far" /></a>Perhaps more important than the record size of the gross short positions now held by normally net long <strong>Funds (Managed Money traders)</strong> is what has consistently occurred in recent (gold bull market) history when the the trend following Funds have built up overly large pure short positions.</div>
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Unless a quantum shift is underway, which seems implausible, those very high short positions should become the<strong> “highest of high octane rally fuel”</strong> once "The Funds" believe the downward impulse for gold is exhausted. </div>
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What is also a bit of a “tell” in our view is that the very high short positions put on by Managed Money traders has been gold-specific. As we conclude in the special Got Gold Report article: <strong>“… we have come to the conclusion that the Funds are in the process of pulling off one of the great head fakes of our trading career. … Either that or they have correctly positioned for the gold market to collapse <span style="text-decoration: underline;"><em>while forgetting to do the same for silver</em></span>.” </strong> </div>
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<span style="font-family: Helvetica, Arial, sans-serif; font-size: x-small; font-style: normal;"><a href="http://www.blogger.com/blogger.g?blogID=7490177925219574159" id="more" style="background-color: white; color: #080896; font-family: 'Trebuchet MS', Verdana, sans-serif; line-height: normal; text-decoration: underline;"></a><span style="background-color: white; color: #222222; font-family: 'Trebuchet MS', Verdana, sans-serif; line-height: normal;"></span></span><br />
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Since sending the report out we have received multiple requests from colleagues we respect and admire to share our work in the public domain - an honor we cannot in good conscience deny. So, below is a link to the entire article, including all the important charts and data, in PDF format. </div>
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Hopefully readers will find it worthy of their time. </div>
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<strong>Read the entire report: "Gold COT Imbalanced, Becoming Bullish" </strong></h3>
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<strong><a href="http://treo.typepad.com/files/20130218-ggr-cot-notes.pdf" style="color: #080896;">Download 20130218 GGR COT Notes</a> (Please allow a few moments to load.)</strong></div>
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<strong>Below is just one example of the many important charts (and data) in the full GGR . It is the record high short gold position held by the usually net long traders the CFTC classes as "Managed Money," aka "The Funds," on February 12, 2013 - just before gold fell sharply, tripping sell stops and trailing stops to test near $1,600. </strong></div>
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<strong><a class="asset-img-link" href="http://treo.typepad.com/.a/6a0120a6002285970c017d412a7b64970c-popup" style="color: #080896; display: inline;"><img alt="20130219 Record Short Pos MM gold" class="asset asset-image at-xid-6a0120a6002285970c017d412a7b64970c" src="http://treo.typepad.com/.a/6a0120a6002285970c017d412a7b64970c-500wi" style="border: 0px;" title="20130219 Record Short Pos MM gold" /></a></strong></div>
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<strong>Clearly the recent selling pressure for gold futures can be directly attributed to The Funds. The natural hedgers and bullion banks have actually been DECREASING their collective net short positioning recently, as the data in the report shows. </strong></div>
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Gene Arensberg for Got Gold Report </div>
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Gold finds record shorts among managed money</h1>
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BY <a href="http://www.resourceinvestor.com/author/alasdair-macleod" rel="author" style="-webkit-tap-highlight-color: rgb(170, 37, 38); background-color: transparent; color: #0a4869; margin: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">ALASDAIR MACLEOD</a></div>
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February 22, 2013</div>
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This week considerable instability developed in currency markets. The yield on US Treasuries has been rising, signalling that they may have bottomed out. And when it emerged from the FOMC minutes that some members are worrying about the commitment to buy Treasuries and mortgage securities, while the British MPC were thinking of renewed QE, sterling had its biggest one-day fall for months.</div>
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Why does this matter for precious metals? It matters simply because there are some extreme positions in Comex futures. Volatility has picked up, with gold sliding $60 to a low of $1554 mid-week, and silver being marked down with it to a low of $28.25.</div>
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Managed money (i.e. hedge funds) is short 47,357 gold contracts, a record, and can be seen as the red line in the chart below, and there are 45 funds short, well over twice the average and very close to the record of 48. Furthermore, their net long position (green line) is close to all-time lows.</div>
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Interestingly, the last time managed funds held record shorts was in May 2012, when gold bottomed out at $1540, before rallying to the $1800 October high. On that basis, managed funds in gold are as good a contrary indicator as you can get.</div>
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The bullion banks, which control prices in futures markets, are reducing their shorts and have cut their net short position in gold by 60,000 contracts, the lion’s share of the reduction being the counterpart of the managed money position. The Commitment of Traders report to be released tonight (UK time) will make fascinating reading, and it is a reasonable supposition that commercials longs have increased substantially while managed funds have gone even more short. The subsequent bear squeeze will be a wonder to behold.</div>
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Silver is a big problem for the bullion banks, as discussed in last week’s report. Since then open interest has increased further on price falls, suggesting the price is being muscled down despite resolute silver buying.</div>
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Managed money behaviour is different with silver, but bears further analysis. There are 16 shorts against a long-term average of 12, and there are 35 longs against a long-term average of 38. What this adds up to is the managed funds in silver are broadly cautious to neutral, so not so susceptible to emotional swings as in gold, which explains why the bullion banks are having difficulty closing their shorts.</div>
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<a href="http://www.resourceinvestor.com/2013/02/22/gold-finds-record-shorts-among-managed-money?t=precious-metals">READ MORE</a></div>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Physical Vs. Paper: Is The Gold/Silver Price Correction Over?</span></h1>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><a href="http://seekingalpha.com/author/dave-kranzler" sasource="about_name" style="border: 0px; color: #024999; font-family: arial, helvetica, clean, sans-serif; font-size: 16px; font-weight: 700; line-height: 19px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Dave Kranzler</a></div>
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<span style="color: #959595; font-family: arial, helvetica, clean, sans-serif; font-size: 12px; line-height: normal;">February 19, 2013</span></div>
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The cyclical ebbs and flows of Comex open interest in gold and silver futures trading is a somewhat arcane topic that receives very little blog commentary and, with a couple exceptions out of London, zero mainstream media attention and Wall Street analysis. But if you follow what has become a pattern endemic to the Comex precious metals open interest data, you can gain an information and trading edge on the rest of the market.</div>
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Last Monday, after looking at the increase in open interest on the Comex, I opined to some colleagues that I believed that the increase in open interest over the past week was a product of large hedge funds chasing the momentum and chart technicals of the gold market lower. I suggested that we would know if my theory was correct when the Friday Commitment of Traders Report (COT) was released. For those who don't know, the cut-off date for this report is the prior Tuesday. The CME reported a large increase in the gold futures open interest for both the previous Friday and the Tuesday COT cut-off day.</div>
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As it turned out, not only was my hunch correct, but the increase in the weekly hedge fund short position is the largest weekly increase since May last year and the large hedge fund gross short position in Comex gold - 10.1 million ozs/293 tonnes - is the largest hedge fund short position in gold dating back to May 2005. The Got Gold Report posts an excellent COT table which shows breakdown in the various COT trader categories (Commercial/big bank, large spec, small spec): <a href="http://treo.typepad.com/.a/6a0120a6002285970c017d411541de970c-popup" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">Weekly COT report</a>. Here's the link to the Got Gold Report Blog: <a href="http://www.gotgoldreport.com/got-gold-blog/" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">GGR</a></div>
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Why do we care about this? To review, the COT report is segregated basically into the Commercial Traders, which include users/producers of gold/silver and Wall Street dealers; the large speculators, which are the hedge funds; and the small speculators, which are the retail account traders. Historically, the trading pattern is that the large specs continually increase their net long position in gold/silver when the market is moving higher. Since futures are a zero sum game, for every buyer there has to be a seller. Accordingly, the big Wall Street banks take the other side of the large spec net long position.</div>
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When the large spec gross long position runs up to a relatively high level, it's usually a signal that the market is getting ready to correct. As such, we will observe an inordinately high level in the Commercial category short position. This typically starts a period of cliff-dive type down days, as the hedge funds all seem to rush for the exits at once and the Wall Street dealers use that selling to cover their short position. It's a wash/rinse/repeat cycle.</div>
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In the last few years, a new pattern has emerged toward the end of particularly vicious price correction cycles. The large hedge funds, after liquidating a significant amount of long positions, start to "chase" the downward momentum of the market and pile into the short side. Concomitantly, we will observe the commercials/banks cover their short position - taking it to a relatively low level - and start to actually get long the market (or less net short, as it were).</div>
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After 12 years of studying the Comex open interest and COT patterns, I've gotten pretty good at "sniffing out" when market is behaving like the hedge funds are piling into the short side. As you can see from the chart below, this pattern also is a very good indicator that a price correction cycle is ending (i.e. gold/silver prices are bottoming out):</div>
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My fund partner has been keeping track of the weekly open interest and COT report positions since early 2005. This chart shows the weekly hedge fund net long open interest vs. the commercial trader gross short position. It dates back to May 2005 and runs through Friday's COT report. You can see from the aligned red circles that the gold price hits a "cyclical" bottom after a period in which the large hedge fund net long position hits a low point and the commercial gross short position also hits a "high" point (the short position is negative, so a high point on that data series represents a low short position).</div>
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Using this information, it appears to me that the current sell-off in gold/silver is at or near an end. If the cycle repeats - and I have no reason to believe it won't - traders and investors can take advantage of this set-up by either adding to existing gold/silver positions for putting on aggressive trading positions.</div>
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<a href="http://seekingalpha.com/article/1201471-physical-vs-paper-is-the-gold-silver-price-correction-over">READ MORE</a></div>
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FRIDAY, FEBRUARY 22, 2013</h2>
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<span style="color: black; font-family: Arial, sans-serif; font-size: 14px; font-style: normal;"><a href="http://www.blogger.com/blogger.g?blogID=7490177925219574159" name="2298029204830739146"></a></span><br />
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<a href="http://truthingold.blogspot.com/2013/02/extreme-capitulation.html" style="color: black; display: block; text-decoration: initial;">Extreme Capitulation</a></h3>
From <a href="http://truthingold.blogspot.com/2013/02/extreme-capitulation.html">The Golden Truth</a></div>
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<b>Gold discoveries from 1990 to 2011 have replaced only 56% of the gold mined during that same period</b> - Metals Economic Group</blockquote>
<span style="font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">Think about that statistic for a minute in the context of the fact that over the last two years eastern hemisphere Central Banks have been accumulating collectively more than half of the mined supply of gold in those two year. China and India combined account for about 50% of the mined supply over the last two years, and that assumes the published numbers from China are accountable. Most observers are certain China understates its published import numbers for gold (I can't imagine any Government not telling the truth).</span><br />
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<span style="font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">The past couple of weeks have left many precious metals investors bordering on terrified. The good news is that, based on long term sentiment indicators which have proved to be 100% accurate buy signals over the last 12 years, this price correction is largely over:</span><br />
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<b>My view is that the precious metals and mining stock sector is forming a big bottom and is getting ready to start a move that ultimately will culminate with new highs for gold, silver, and the mining stock indices. I would be so bold as to say that next to October 2008 and early 2001, this is probably the single best entry point that investors will get during the course of the precious metals bull market.</b></blockquote>
<span style="font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">You can read that entire commentary and see some incredible charts that show just how dismal the investor sentiment with regard to the precious metals has become here: </span><a href="http://seekingalpha.com/article/1213181-gold-silver-mining-stocks-capitulicious" style="color: #cc0000; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px; text-decoration: initial;">Extreme Capitulation</a><br />
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The bottom line is that the fundamental factors supporting the relative value of the precious metals in relation to paper currencies become stronger by the day. To give you and idea of a possible price target for the price of gold over the next 12-24 months, here is a superb chart from <b>The Daily Market Summary</b> - <a href="http://www.dailymarketsummary.com/" style="color: #cc0000; text-decoration: initial;">LINK</a>:</div>
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<b>(Click on chart to enlarge)</b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5DQ-9K-Hj2nhQyaBg4m9hKUBPuyZiUYoK72ykZ_WGwORhqyz-2e9zVMVgQ8ZvsN0a7m1uyHJ_YfRu2FnqOaOEyEnPCiVrbPK6zQuarjaq5b7lzloT8w5RX66V5o6x2YWLXL7aWB4MaG-9/s1600/FedBSvsGOLD.png" imageanchor="1" style="color: black; margin-left: 1em; margin-right: 1em;"><img border="0" height="434" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5DQ-9K-Hj2nhQyaBg4m9hKUBPuyZiUYoK72ykZ_WGwORhqyz-2e9zVMVgQ8ZvsN0a7m1uyHJ_YfRu2FnqOaOEyEnPCiVrbPK6zQuarjaq5b7lzloT8w5RX66V5o6x2YWLXL7aWB4MaG-9/s640/FedBSvsGOLD.png" style="border: 1px solid rgb(0, 0, 0); padding: 4px;" width="640" /></a></div>
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“Eric, to my knowledge this is the only chart in existence that tells us when the next high and the next low for gold will occur. The turning points in the squares at the top of this chart are a golden gift from Mother Nature. I call them LTD’s. They are turning points specifically for gold bullion. Since this bull market in gold began a new high has occurred at every number [4] high and every grouped numbers [1] [2]. </div>
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Gold is currently bottoming at LTD #3. The next high will occur at LTD #4. These turning points are not influenced by the Federal Reserve or any government activity. They do not care about who is buying or selling or how much they are buying or selling. They do not care about the ‘big boys’ or the ‘little boys.’....</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/20_The_Chart_That_Tells_You_All_You_Need_To_Know_About_Gold.html">READ MORE</a></div>
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Gold’s Death Cross is a buy signal for China</h1>
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<span class="byAuthor" style="-webkit-text-size-adjust: auto; color: #3f3f3f; font-family: georgia, 'times new roman', serif; font-size: 12px; font-weight: normal; line-height: 17.75px;">By <a href="http://blogs.telegraph.co.uk/finance/author/ambroseevans-pritchard/" rel="author" style="color: #234b7b; font-weight: bold; outline: 0px; text-decoration: initial;" title="Posts by Ambrose Evans-Pritchard">Ambrose Evans-Pritchard</a></span><span style="-webkit-text-size-adjust: auto; color: #3f3f3f; font-family: arial, helvetica, sans-serif; font-size: 12px; line-height: 17.75px;"> </span><span class="lastUpdated bylineCategory" style="-webkit-text-size-adjust: auto; border-left-color: rgb(224, 224, 224); border-left-style: dotted; border-left-width: 1px; color: #3f3f3f; font-family: georgia, 'times new roman', serif; font-size: 12px; font-weight: normal; line-height: 17.75px; margin-left: 2px; padding-left: 5px;"><a href="http://blogs.telegraph.co.uk/finance/category/economics/" rel="category tag" style="color: #b22929; font-weight: bold; outline: 0px; text-decoration: initial;" title="View all posts in Economics">Economics</a></span><span style="-webkit-text-size-adjust: auto; color: #3f3f3f; font-family: arial, helvetica, sans-serif; font-size: 12px; line-height: 17.75px;"> </span><span class="lastUpdated" style="-webkit-text-size-adjust: auto; border-left-color: rgb(224, 224, 224); border-left-style: dotted; border-left-width: 1px; color: #3f3f3f; font-family: arial, helvetica, sans-serif; font-size: 12px; font-weight: normal; line-height: 17.75px; margin-left: 2px; padding-left: 5px;">Last updated: February 21st, 2013</span></div>
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The first whiff of future tightening from the US Federal Reserve has sent bullion into a nose-dive, triggering a much-feared “Death’s Cross” sell signal on gold futures.</div>
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Gold has dropped by over $100 an ounce in ten days, touching $1556 this morning. The HUI index of gold mining stocks broke down weeks ago – as so often leading gold itself by a few weeks – and has already crashed to levels last seen in 2009.</div>
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Goldman Sachs has cut its long-term forecast to $1,200. Credit Suisse and UBS are bearish.</div>
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Citigroup says the great bull market of the last 12 years is over. The “long cycle” has peaked. Economic recovery has yanked away the key support. So long as there are no big “street riots” this year, investors will stop buying precious metals as Armaggedon insurance and rotate instead into stocks that generate income. Such at least is the argument.</div>
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This is more of less what the market would look like and feel like if the gold rally really were to fizzle out, leaving behind an army of small investors who joined the party late and face deepening losses for twenty years – as they did from 1981 to 1999.</div>
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If it were true that the Fed is preparing to unwind QE, I would agree – up to a point – that gold faces a nasty squall. But all we had from the minutes was a comment that an undisclosed number of FOMC voters fear inflation and financial bubbles and think the Fed should stand ready to cut back on bond purchases earlier than thought.</div>
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How many times before have we heard “exit talk” from Fed hawks? We know who they are. They make a lot of noise. They are routinely ignored. The policy is dictated by the Fed Board and by Ben Bernanke, and there is little sign yet that the board is about to turn.</div>
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All the indications point the other way. Bernanke is targeting 6.5pc unemployment, and probably targeting nominal GDP growth of 4pc to 5pc as well.</div>
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The US faces fiscal tightening equal to 2pc of GDP this year at best. It is hard to see what is going to offset this. There is a snowball’s chance in hell that economic expansion will be strong enough in 2013 to force Fed tightening.</div>
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As for Japan – still the world’s biggest creditor – it has imposed a new policy mandate on the BoJ that implies massive easing over the next year.</div>
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The world economy as a whole is still in the grip of a deflationary vice. The global savings rate is still rising to fresh records above 24pc each year.</div>
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There is still a glut of capital sloshing around (and ready to go into gold) and a dearth of consumption. The overhang of excess capacity in global manufacturing is still there.</div>
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China’s investment is still running at 50pc of GDP, and its consumption is just 36pc, the most distorted economy in modern history.</div>
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The international trading system is still out of kilter. Globalisation is still going haywire and that is the underlying cause of the global crisis.</div>
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We remain in a 1930s slump. Until this is overcome it is a fair bet that the Anglo-Saxon central banks and their OECD allies (basically everybody except Frankfurt) will stay uber-loose to mitigate the damage.</div>
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The world’s policy-making elites know this, which is why central banks bought more gold last year than at any time since 1964. Turkey bought 164 tonnes, Russia bought 75 tonnes. Brazil, Korea, the Philippines, Kazakhstan, Iraq, Mexico, Paraguay, and others all added to their gold reserves.</div>
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The Chinese don’t declare gold purchases, but it is an open secret that are buying on every dip, as they have to do merely to keep the proportion stable at 2pc of their $3.3 trillion reserves. Chinese managers at SAFE must be licking their chops at this week’s chatter about a Death’s Cross.</div>
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I might add that China would have to buy vast amounts of gold to raise the share to 10pc, a figure mooted by some officials in Beijing.</div>
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Until the EMU debt crisis China was still willing to invest most of its fresh reserves in euro debt to diversify away from the dollar. Three years of incompetent crisis management – and no real solution in sight even today – have punctured any illusion in Beijing that monetary union is a sound undertaking.</div>
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Jin Zhongxia, head of the central bank’s research institute, said in an OMFIF paper this week that: “the debt crisis in the euro area has demonstrated the structural weakness of this currency.” Indeed.</div>
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Yes, the Chinese like the dollar again, but they already have a lot of dollars. They don’t have much gold compared to their peers.</div>
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So hold your nerve. The reality is that we have been moving for several years to an informal Gold Standard in which gold takes its place once again as a central store of value – a currency of sorts – in the mix of sovereign reserves.</div>
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The reason is obvious. The West is crippled by debt, and so is Japan. Governments are likely to seek an easy way out in the end. The rising reserve powers of Asia know this perfectly well.</div>
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As for the Death’s Cross – when the 50-day moving average falls below the 200-day average – it has not actually happened. It occurs only if the 200-day line is declining. This is not yet the case. As you can see below, the line is rising very slightly. That makes it a “Dark Cross”.</div>
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<a href="http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100022953/golds-death-cross-is-a-buy-signal-for-china/screen-shot-2013-02-20-at-4-22-06-am/" rel="attachment wp-att-100022954" style="border-bottom-color: rgb(18, 40, 66); border-bottom-style: dotted; border-bottom-width: 1px; color: #122842; outline: 0px; text-decoration: initial;"><img alt="" class="alignnone size-medium wp-image-100022954" height="278" src="http://blogs.telegraph.co.uk/finance/files/2013/02/screen-shot-2013-02-20-at-4.22.06-am-460x278.png" style="border: 0px; display: block; max-width: 100%; padding: 0px;" title="screen shot 2013-02-20 at 4.22.06 am" width="460" /></a></div>
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<a href="http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100022953/golds-death-cross-is-a-buy-signal-for-china/">READ MORE</a></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-8071586024722988512013-02-21T07:04:00.002-05:002013-02-21T07:04:31.301-05:00<div dir="ltr" style="text-align: left;" trbidi="on">
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The Great Gold Deception and Misdirection</div>
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<b>by <a href="http://www.24hgold.com/english/contributor-gold-silver-stewart-dougherty.aspx?contributor=Stewart%20Dougherty" style="color: #4e4e4e; text-decoration: initial;" target="_blank">Stewart Dougherty</a></b></div>
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Published : February 20th, 2013</div>
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<i><span lang="EN-US">“Fascism should more properly be called corporatism, because it is the merger of state and corporate power.” </span></i></div>
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<b><span lang="EN-US">Benito Mussolini</span></b></div>
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<span lang="EN-US">It would be fortunate for the western world, particularly the United States, if it were “merely” becoming a neo-fascist dictatorship. But since all life forces evolve, particularly those that are evil, the west is actually experiencing something far more pernicious: namely, a <span class="SpellE">banksterist</span> dictatorship, which is en route to something even worse.</span></div>
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<span lang="EN-US">In <span class="SpellE">Banksterism</span>, the full arsenal of the state is deployed to preserve and protect one thing above all else: the power, wealth, influence and profits of <span class="SpellE">banksters</span>. It is only the crumbs left over after the <span class="SpellE">banksters</span> have gorged themselves at the money<span class="SpellE">trough</span> that are cast upon the dirt for everyone else to scavenge and peck upon. The problem is that history, and particularly recent history shows that <span class="SpellE">banksters</span> can never get enough. They are addicted to lucre, as if it were heroin. So in a <span class="SpellE">banksterist</span>dictatorship, capital is systematically plundered from the overall economy, causing it to weaken, and then die. This is when the covert totalitarianism of <span class="SpellE">banksterism</span> yields to overt, full-blown, state-sponsored military totalitarianism, <span class="GramE">better</span> known as the Police State. The road to tyranny is paved with <span class="SpellE">banksterism</span>.</span></div>
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<span lang="EN-US">The week of February 11, 2013 saw one of the most persistent, concentrated and vicious attacks on precious metals prices during the entire GENERATION -long<span class="SpellE">bankster</span>-orchestrated price rigging campaign. Prices suffered repeated, waterfall declines every single day, and often multiple times per day, on precisely zero news that might have explained them. In other words, these price raids were outright, collusive and pre-meditated slaughters, conducted one after another after another. As financial market experts know, such price action is totally unnatural and illogical; no legitimate, for-profit seller in their right mind dumps supply onto a market in this fashion, unless they know for a fact that their price raid will work, and continue to work. This is the case when the price manipulator controls the market. While we are told that price fixing is illegal, this is obviously false because certain well-connected elites get away with it whenever they <span class="GramE">want,</span> and for decades at a time. If a cabal can manipulate a large, global market such as gold, it can steal staggering sums of money.</span></div>
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<span lang="EN-US">Based on the elephantine, concentrated short positions in gold and silver held last week by the top eight cartel members, it is probable that they raked in profits of more than $1,000,000,000 (one billion dollars) in the gold futures market, and more than $450,000,000 (four hundred fifty million dollars) in the silver futures market price attacks. In total, they swindled nearly $1.5 billion dollars, in gold and silver futures alone, in one week alone, in the United States alone, by pushing a few computer keys and capturing the right regulators, who are trained and incentivized to look the other way. While zero true economic value was created by these price manipulations, $1,500,000,000.00 (1.5 billion dollars) flowed from the marketplace and into the already stuffed pockets of enormously powerful and well-connected<span class="SpellE">banksters</span>. This is the <span class="SpellE">banksterist</span> dictatorship right in the people’s face and flipping the bird at them. If you were long the metals last week, you learned who was in charge, and it wasn’t you, no matter how intelligent the investment rationale behind your position might have been.</span></div>
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<span lang="EN-US">The $1.5 billion profit figure does not include additional shorting profits that were likely made in more opaque instruments such as options, futures on options and other synthetic derivatives. Nor does it include profits that were likely engineered in international metals markets, such as Tokyo, Sydney, Zurich, London, and the<span class="SpellE">Caymen</span> Islands. Nor does it include what must have been far greater profits derived from the shorting and naked shorting of mining equities, and the purchase of mining equity puts. All in all, the price rigging cartel surely made multiples of their $1.5 billion futures market windfall.</span></div>
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<span lang="EN-US">For years, the explanation and faux-justification for the United States-centered price oppression of precious metals has been that it is a government-directed operation designed to protect a monopoly product vital to the nation and the world: the United States dollar, the world’s sole, current reserve currency. We are led to believe that the banks supposedly working in concert with the United States Treasury and Federal Reserve to support the dollar by shorting its reciprocals, gold and silver, are somehow doing “God’s work.” It is a touching Motherhood and Apple Pie tale, dripping with overtones of Red, White and Blue patriotism. Unfortunately, it is a total deception.</span></div>
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<span lang="EN-US">Kyle Bass, the credible, successful and well-respected fund manager, recently reported that a senior White House official informed him that the way the United States government intends to revive the moribund economy is to promote exports, and that in order to achieve this objective, the government intends to allow the dollar to decline, significantly. Indeed, the press is now awash in stories about the so-called “currency wars” that are now said to rage worldwide. </span></div>
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<span lang="EN-US">But this can hardly be called news, because a weak currency is already guaranteed in a country that is bankrupt. Currency momentum can only last so long, even for so-called King Dollar. The United States currently has debt and unfunded contingent liabilities exceeding $200,000,000,000,000.00 (two hundred trillion dollars); the nation’s annual, federal cash deficit has hovered around $1,000,000,000,000.00 (one trillion dollars) for four years, is stuck, and does not include state, county or municipal deficits; the nation’s federal GAAP deficits have exceeded $5,000,000,000,000.00 (five trillion dollars) for four years, and are also stuck; state and local government employee unfunded pension obligations exceed $3,500,000,000,000.00 (three and one half trillion dollars), despite a Federal Reserve-engineered and totally artificial price levitation of the stock market; and the long, sharp deficit horns of <span class="SpellE">Obamacare</span>, which no one in Congress even read before passing and the negative fiscal implications of which are completely and utterly incomprehensible to anyone and everyone other than God, are now starting to rip into economic and fiscal reality and tear it to shreds. <span class="SpellE">Obamacare</span> will unquestionably become a multi-trillion dollar deficit catastrophe, on top of all the others. So any commentary about a “strong dollar policy” should be restricted to two venues, only: Comedy Central; and the jackass cages at zoos.</span></div>
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<span lang="EN-US">But now we have a contradiction. One the one hand, we are told that the government smashes precious metals prices in order to prop up the value of the dollar. On the other hand, we learn that the government intends to trash the dollar, in an effort to jump start the dying economy through export growth. Which is it then, and what does the government really want? If they want a strong dollar (which we just demonstrated they cannot have even if they do want it, which they don’t), then yes, suppressing metals prices might be a useful, temporary gimmick. If they want a weak dollar, then they should leave metals prices alone and allow them to find their true market levels. There is no possible way that the United States, with $200,000,000,000,000.00 in debts and unfunded obligations, chronic trade deficits, and a shrinking economy could seriously want a strong dollar; that would be a vote for economic self-destruction.</span></div>
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<span lang="EN-US">So while the explanation that precious metals prices are being artificially depressed to support the dollar sounds logical and patriotic, it has actually been a calculated and clever misdirection. In misdirection, observers are told to look to the left, while the real action takes place to the right. Another word for misdirection is “sting.” </span></div>
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<span lang="EN-US">Like Hemingway’s saying about how one goes bankrupt, in a sting, the victims (or “marks”) learn slowly, and then all at once. By the time the “all at once” learning phase has occurred, the marks’ “investments” are long gone. The thieves who stung the victims will be traveling at break neck speed 100 miles ahead of the <span class="GramE">marks,</span> and the marks will never catch up. The 30+ year precious metals price manipulation has been a generation-long sting that is still going on. In a way, you have to hand it to these criminals; they have taken greed and shamelessness to a whole new, intergalactic dimension.</span></div>
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<span lang="EN-US">The fatal flaw in the “God’s work” narrative that has accompanied the precious metals price rigging crime is that it assumes the government is in charge. But in a<span class="SpellE">banksterist</span> dictatorship, that is not how it works: governments do not control banks; banks control governments.</span></div>
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<span lang="EN-US">As we are taught by Occam’s Razor, all things being equal, the simplest explanation is likely to be the truth. And when it comes to the <span class="SpellE">bankster</span>-controlled precious metals price fixing sting, the Razor cuts right to the core of the matter. The real reason for the persistent price rigging of precious metals prices is simple: Money. For the past 30+ years, the <span class="SpellE">banksters</span> have enjoyed an outright license to print profits in the metals markets, and they have leveraged that license to make tens, if not hundreds of billions of dollars in the process.</span></div>
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<span lang="EN-US">In <span class="SpellE">banksterism</span>, it is not the government that prints the money, but rather the<span class="SpellE">banksters</span> who print the money, and once it is printed, they hand it to themselves. The irony is that they use the government’s printing presses and computers, apparently to keep costs low and boost returns. One problem with the <span class="SpellE">bankster</span>license to print profits is that in zero-sum markets, such as futures, <span class="SpellE">bankster</span> gains must by definition be stolen from the victims on the other side of the trades, resulting in serious harm to others. But far worse, the <span class="SpellE">bankster</span> license to print is simultaneously a license to kill an economy. </span></div>
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<span class="SpellE"><span lang="EN-US">Bankster</span></span><span lang="EN-US">-orchestrated precious metals price rigging represents the longest-running public theft in history. It is 100% aided and abetted by the United States government and others, including Britain’s. The legions of regulators in these jurisdictions, who have sworn oaths to enforce laws and prosecute fraud and who are clearly aware of the problem, have done precisely nothing to stop it. The only thing changing today is that the fraud is getting even more brazen, endemic and profitable.</span></div>
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<span lang="EN-US">The price of this massive crime against the society of the United States and the nation’s economy is literally impossible to overstate.</span></div>
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<span lang="EN-US">First, by routinely crashing gold and silver paper prices for private gain, the<span class="SpellE">banksters</span> have given economic competitors such as China and Russia the ability to acquire massive amounts of gold at bargain basement prices. This is occurring at a time when dozens of countries are expressing open disdain for the dollar reserve currency regime, and actively working to subvert it. When the <span class="SpellE">banksterist</span> price manipulation scheme ultimately fails, as such schemes always do, metals prices will surge to their true levels, giving countries such as China epic windfall profits. China’s rapidly increased wealth, combined with its new found ability to back the <span class="SpellE">yuan</span> with gold will pole vault their currency into quasi- or full-reserve status, particularly among key trading partners. In monetary terms, this will be the equivalent of a 9.0 earthquake for the United States, particularly since it could happen suddenly. A matter as serious as this is one of national security. </span></div>
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<span lang="EN-US">Second, the demonstrable <span class="SpellE">bankster</span> greed that has been the foundation of the precious metals price rigging scandal makes it likely, if not virtually certain that another greed-fueled scandal has also been playing out in the shadows: namely, that the United <span class="SpellE">States’s</span> official gold reserves have been leased out to <span class="SpellE">banksters</span> in exchange for pittance interest payments, and then sold to the Chinese and others, for profit. Further, given that the <span class="SpellE">banksters</span> know for a FACT that metals prices are far below market, since it is they, the <span class="SpellE">banksters</span> that have collusively fixed them there, we have to wonder if a serious portion of the official U.S. reserves have not been appropriated by the <span class="SpellE">banksters</span>, at dirt cheap prices at best, or maybe simply in exchange for pieces of paper called “Leases,” at worst. In a <span class="SpellE">banksterist</span> dictatorship, this kind of thing can happen without anyone on the outside knowing about it, or anyone on the inside saying a word. </span></div>
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<span lang="EN-US">If, in the future, the <span class="SpellE">banksters</span> claim that they cannot return the gold, nothing will happen to them, because in <span class="SpellE">banksterism</span>, the government is captured and controlled by the <span class="SpellE">banksters</span>. Further, in <span class="SpellE">banksterism</span>, the people are brainwashed to believe that the banks are “too big to touch,” in other words, “too big to prosecute.” People are <span class="SpellE">fearwashed</span> (a form of brainwashing and mind control) to believe that prosecuting<span class="SpellE">banksters</span> will “bring down the economy.” This kind of propaganda is the height of irony, because it is actually <span class="SpellE">banksterism</span> itself that destroys an economy. </span></div>
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<span lang="EN-US">There already exists a mound of evidence indicating that the United States gold reserve is gone, either in whole or in part. This evidence ranges from the persistent refusal by the government to even audit its supposed stockpile, to the snail’s-pace proposed return of Germany’s gold. If Germany wants its gold returned from the New York Fed, why must they wait seven years to get only a small fraction of it? </span></div>
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<span lang="EN-US">Third, flagrant, unprosecuted corruption causes people to lose faith in government and its institutions, particularly those related to justice. People come to realize that if a nation’s monetary and banking systems are corrupt, then such corruption likely filters into other vital areas of government. Since money and banking constitute the core of a so-called capitalistic economy, the corruption of these functions is crippling.</span></div>
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<span lang="EN-US">The paradox is that by trying to discredit gold, the <span class="SpellE">banksters</span> actually discredit the dollar by sewing suspicions and concerns about its value. People will ask themselves, “If the only way the U.S. government can create the illusion of dollar strength is by illegally manipulating the prices of its reciprocals, gold and silver, then the dollar itself must be in trouble.” If the dollar were intrinsically sound, it would not be necessary to illegally and artificially support it via price manipulations and fraud. More, people will start to realize what is truly going on: a <span class="SpellE">banksterist</span>, double-standard regime, in which there is total freedom for the <span class="SpellE">banksters</span> to plunder and to print profits at will; and a strict set of laws and regulations for everyone else, punishable by everything from draconian fines to prison terms.</span></div>
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<span class="SpellE"><span lang="EN-US">Ayn</span></span><span lang="EN-US"> Rand described this phenomenon well when she wrote: “We are fast approaching the stage of ultimate inversion: the stage where the government is free to do anything it pleases, while citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force.” Just substitute the word “<span class="SpellE">banksters</span>” for “government” to get a true read of today’s situation.</span></div>
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<span lang="EN-US">Fourth, as with socialism, fascism and communism, <span class="SpellE">banksterism</span> is guaranteed to fail, and will destroy an entire economy in the process. While the small elite will become enormously wealthy during the reign of any of these “isms,” it becomes so at the expense of the remainder of society. This is exactly what has been happening since the 2008 meltdown, when despite trillions of dollars’ worth of direct aid for<span class="SpellE">banksters</span>, the true economy continues to deteriorate. This deterioration would be even more obvious if inflation were properly reported, as it would become clear that GDP is in structural decline. Predictably, <span class="SpellE">bankster</span> profits have increased throughout the ongoing financial crisis, while the poverty level in the United States has exploded, incomes have eroded, the middle class has been destroyed and the real economy has contracted. This type of dynamic is inevitable in a <span class="SpellE">banksterist</span> dictatorship, because as capital is continuously looted from the economy, true economic recovery becomes impossible.</span></div>
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<span lang="EN-US">Fifth, by smashing metals prices, the <span class="SpellE">banksters</span> have frightened ordinary people away from metals investments, and this is no doubt an intended and desired outcome, at least from the government’s perspective. The government wants people to spend, not save; it wants them to be poor, not rich; it wants them dependent, not free. When the inevitable crisis occurs, those who have not diversified their savings into metals will have nothing but rapidly depreciating pieces of paper called dollars, which have zero intrinsic worth. Because their assets will be trapped in dollars, they will be lost. In a <span class="SpellE">banksterist</span> dictatorship, the people are encouraged, and ultimately forced to commit financial suicide by directing their money into idiotic stock market and similar “investments,” as they desperately search for yield and capital gains. It is no coincidence that the <span class="SpellE">banksters</span> get to earn fees from these desperation transactions. Such mal-investments will ultimately implode, ruining investors. Governments know for a fact that it is easy to control people who are completely helpless and financially dead.</span></div>
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<span lang="EN-US">The recent surge of gun purchases by citizens demonstrates that there is a deep understanding among them about what is happening, and coming. While many have been conned into worshipping at the altar of <span class="SpellE">Bernankeism</span>, and are buying stocks in a market that only goes up thanks to desperate and deliberate Fed intervention, countless others have gone to the gun stores instead. This is known as Voting with one’s Wallet, and the American wallet can actually be quite smart in times of chaos. Those who have discounted the collective intelligence of the American people have always lived to regret it. </span></div>
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<span lang="EN-US">Combined, the cost of the precious metals price fixing scandal has been incalculable for the United States economy and people. People worry about nuclear bombs, but the fallout from nuclear stupidity can be far more deadly. The fact that the <span class="SpellE">banksters</span>have had free reign to perpetrate their fraud for more than three decades represents nuclear stupidity of an epic magnitude. The fallout of this nuclear stupidity is so dangerous that it has undermined the prospects of an entire nation, and possibly made inevitable the country’s ruin. The vast enrichment of the Chinese, at the same time that the United States is attempting to deal with its national bankruptcy and structurally faltering economy is a potentially explosive scenario with zero upside and enormous downside prospects for America.</span></div>
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<span lang="EN-US">In conclusion, for those concerned about what has been happening to precious metals prices, the following summary might provide some helpful context, and even consolation. Those of you who have chosen to denominate some portion of your wealth in precious metals have not been intellectually wrong; you have just been cheated, at least for now. To summarize: </span></div>
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<span lang="EN-US">1) The precious metals price rigging campaign that has taken place for the past 30+ years has been a simple, blatant, obvious crime.</span></div>
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<span lang="EN-US">2) This crime has been orchestrated by <span class="SpellE">banksters</span> for one purpose only: to make money. The money they have made has not come out of thin air; it has been stolen from people on the other side of the respective trades. Therefore, it is a crime scene strewn with real victims. The fuel for this crime has been the diagnosable mental illness called Greed.</span></div>
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<span lang="EN-US">3) This crime has not had one redeeming virtue, patriotic or otherwise. It has not in any way had anything to do with helping to “defend” the dollar or aid the United States or its people. It has only been about money, and greed.</span></div>
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<span lang="EN-US">4) This crime has created enormous threats to the United States economy, the dollar, and national security. </span></div>
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<span lang="EN-US">5) This crime has set the stage for the vast enrichment of powerful economic competitors, such as China and Russia. </span></div>
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<span lang="EN-US">6) By financially empowering the nation’s competitors, it will also empower them militarily, so the ruinous consequences of this crime are unpredictable, immeasurable and stark.</span></div>
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<span lang="EN-US">7) The road to tyranny is paved with <span class="SpellE">banksterism</span>, which is a supreme threat to citizens worldwide.</span></div>
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<span lang="EN-US">8) While smart nations such as China encourage their citizens to buy gold and silver, stupid nations such as the United States discourage gold ownership via metals price manipulation, and instead encourage spending on consumer products that ultimately impoverish citizens. When metals prices are revalued, which is absolutely inevitable, China’s citizens and government will gain, while America’s citizens and government will lose. This is a consequence of nuclear stupidity.</span></div>
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<span lang="EN-US">9) Greed is the seed of its own destruction, and price manipulations always fail in time. When the precious metals price manipulation fails, prices will surge from current depressed levels. </span></div>
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<span lang="EN-US">10) Ultimately, the truth will come out about the status of the United States gold reserve, and it is likely to be shocking. If the U.S. gold reserve has in fact been sold, for example to the Chinese, and/or appropriated by the <span class="SpellE">banksters</span>, the consequences for the United States economy and dollar will be dire and irreversible. The United States could become the equivalent of a third world nation virtually overnight, with staggering inflation, violent social unrest, exploding poverty, surging homelessness, and unprecedented hunger. Such news would outright guarantee the swift emergence of uncontrolled totalitarianism that would make previous historic episodes of this curse in countries such as the USSR and Germany look tame.</span></div>
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<span lang="EN-US">11) Readers should contact their elected representatives and ask why “too big to fail, and too big to touch” banks, that have been and continue to be backstopped by the American taxpayer, are allowed to speculate in the futures casino with tens to hundreds of billions of dollars. If these <span class="SpellE">banksters</span> lose, who pays? The taxpayer, obviously, but why is such insanity permitted to continue?</span></div>
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<span lang="EN-US">12) Readers should also ask their representatives, “Where is our gold? Do we still have any? How, Mr. or Ms. Elected Representative, do you know? If it is gone, who got it? And how much did they pay for it? Anything, or did they just give our government a piece of paper called a “Lease”? Why is the status of the people’s gold a state secret? How do you justify that, Mr. or Ms. Elected Representative? If you lie about our, the people’s gold, what else are you lying about? Is it, in fact, everything?</span></div>
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<span lang="EN-US">The End Game is coming. It is inevitable, despite official pronouncements to the contrary. Just look at the numbers. They do not lie. It is urgent that you take steps right now to protect not just your financial freedom, but your personal freedom as well.</span></div>
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<span lang="EN-US"><span style="font-family: Georgia;"><a href="http://www.24hgold.com/english/contributor.aspx?article=4250111102G10020&redirect=false&contributor=Stewart+Dougherty&mk=1">http://www.24hgold.com/english/contributor.aspx?article=4250111102G10020&redirect=false&contributor=Stewart+Dougherty&mk=1</a></span></span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-80436498553551162972013-02-14T18:14:00.001-05:002013-02-14T18:14:23.217-05:00Global central banks have collectively "printed" over $11 TRILLION...WHY WOULD YOU SELL YOUR SILVER AND GOLD?<div dir="ltr" style="text-align: left;" trbidi="on">
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The State of the Dollar</h1>
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<b>Editorial of The New York Sun | February 11, 2013</b></div>
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All eyes will be on President Obama [tomorrow] when he fulfills his constitutional obligation to “give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient.” All sorts of topics are in the advance headlines, from jobs, to the budget crisis, to gay rights, to the war. All of them are worthy of attention by the President and the Congress.<br /><br />Yet we haven’t seen in the headlines about the pending presidential palaver even one mention of the topic that, by our lights, rises above all the others. This is the state of the dollar. Particularly in an age of fiat money, where there is no gold or silver backing for our national currency and the only basis of it is the economic good fortune of the nation, well, particularly in such an age, the state of the dollar can be seen as a proxy for the state of the union itself.<br /><br />If so, the state of the union is at a historic low. We have rehearsed this point so often in these columns that we fear our loyal readers are in danger of becoming afflicted with monetary monotony. We run the risk because of the aphorism of the Robert L. Bartley, now sadly deceased. “It takes 75 editorials to pass a law,” he said. He was speaking of a newspaper that had a daily circulation of 2 million copies. Imagine how many editorials it will take from us more modest sized newspapers.<br /><br />This topic happens to be getting hotter by the week. The biggest development of late, in our book, was the decision of the Wall Street Journal to issue the <a href="http://online.wsj.com/article/SB10001424127887323375204578267943236658414.html">op-ed piece by John Taylor</a> warning that the supposedly stimulative monetary policy that Chairman Bernanke and his colleagues have been running is actually a drag on the recovery. That would be like a fire department discovering that the water with which it is hosing down a blaze is flammable.<br /><br />So what in the world does the President think of monetary policy? Why has he been so all-fired mum on the subject? The question nags at us, particularly in light of his comments during the 2008 campaign. He made them in a meeting with the editors of the Sentinel, a newspaper that is issued at Keene, New Hampshire. We <a href="http://www.nysun.com/editorials/1500-gold/87306/">wrote about Mr. Obama’s comments in 2011</a>, when the value of the dollar collapsed to below a 1,500th of an ounce of gold.<br /><br />The question that had been put to Mr. Obama in 2008 — it was perfectly asked by the Sentinel's editor, Jim Rousmaniere — was about the decline of the dollar. “Is that good or bad?” the candidate was asked. Mr. Obama tried briefly to suggest that there were some benefits to a weak dollar, but he was too smart to stick with that argument — at least while he was running for office. The last guy who tried it was a certain peanut farmer who was trying for a second term.<br /><br />Then Mr. Obama noted that we hadn’t seen inflation — yet. “It’s not going to last forever,” he said. “So the downside is we’re going to see inflationary pressures as a consequence of this.” Then the candidate asserted that he was “less concerned” about the day to day gyrations of the dollar than “by the underlying economic fundamentals that are causing the dollar to decline,” which he characterized as “that we’re spending more than we produce, and you know we are losing our competitive edge.”<br /><br />So how’s that working out now that Mr. Obama is beginning his second term? The Federal Reserve has expanded its balance sheet to levels it would once have been hard even to dream about. Our central bank is exposed, as George Melloan wrote in a column in these pages called “<a href="http://www.nysun.com/national/bernankes-worst-fear/88179/">The Fed’s Worst Fear</a>,” to the bond market. More than a dozen states are eying making gold and silver coins legal tender. A vast bi-partisan majority of the House wants to audit the Fed, and a new avant garde is talking about the gold standard. Isn’t it past time for the President to say something to the Congress and to the American people about the state of the dollar?<br />
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<a href="http://www.nysun.com/editorials/the-state-of-the-dollar/88190/">http://www.nysun.com/editorials/the-state-of-the-dollar/88190/</a><br />
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<span style="font-size: large;"><b>Obama's Treasury Pick Says He Supports Strong U.S. Dollar</b></span><br />
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From Reuters<br />Wednesday, February 13, 2013</div>
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<a href="http://www.reuters.com/article/2013/02/13/us-usa-congress-lew-dollar-idU...">http://www.reuters.com/article/2013/02/13/us-usa-congress-lew-dollar-idU...</a></div>
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WASHINGTON -- Jack Lew, President Barack Obama's pick to run the Treasury Department, on Wednesday said he would support a strong U.S. dollar, in line with longstanding U.S. policy.</div>
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"Treasury has had a longstanding provision through administrations of both parties that a strong dollar is in the best interests of promoting U.S. growth, productivity and competitiveness," Lew said during a hearing vetting him for Treasury secretary, in response to a question.</div>
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"If confirmed, I would not change that policy."</div>
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But just how is the 'strong dollar' policy implemented, except by suppressing gold? Nobody in political authority or journalism ever asks. Is it implemented at the end of the barrel of a gun, or perhaps with a smart bomb or maybe a drone strike?<br />
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For an example of "dumb Dollar policy" please refer to comments by then Fed Governor Ben S. Bernanke:<br />
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<b>Remarks by Governor Ben S. Bernanke<br />Before the National Economists Club, Washington, D.C. </b><i>November 21, 2002</i></div>
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<b><i>Deflation: Making Sure "It" Doesn’t Happen Here</i></b></div>
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<i>Since World War II, inflation–the apparently inexorable rise in the prices of goods and services–has been the bane of central bankers. Economists of various stripes have argued that inflation is the inevitable result of (pick your favorite) the abandonment of metallic monetary standards, a lack of fiscal discipline, shocks to the price of oil and other commodities, struggles over the distribution of income, excessive money creation, self-confirming inflation expectations, an "inflation bias" in the policies of central banks, and still others. Despite widespread "inflation pessimism," however, during the 1980s and 1990s most industrial-country central banks were able to cage, if not entirely tame, the inflation dragon. Although a number of factors converged to make this happy outcome possible, an essential element was the heightened understanding by central bankers and, equally as important, by political leaders and the public at large of the very high costs of allowing the economy to stray too far from price stability.</i></div>
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<i>With inflation rates now quite low in the United States, however, some have expressed concern that we may soon face a new problem–the danger of deflation, or falling prices. That this concern is not purely hypothetical is brought home to us whenever we read newspaper reports about Japan, where what seems to be a relatively moderate deflation–a decline in consumer prices of about 1 percent per year–has been associated with years of painfully slow growth, rising joblessness, and apparently intractable financial problems in the banking and corporate sectors. While it is difficult to sort out cause from effect, the consensus view is that deflation has been an important negative factor in the Japanese slump.</i></div>
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<i>So, is deflation a threat to the economic health of the United States? Not to leave you in suspense, I believe that the chance of significant deflation in the United States in the foreseeable future is extremely small, for two principal reasons. The first is the resilience and structural stability of the U.S. economy itself. Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow. Flexible and efficient markets for labor and capital, an entrepreneurial tradition, and a general willingness to tolerate and even embrace technological and economic change all contribute to this resiliency. A particularly important protective factor in the current environment is the strength of our financial system: Despite the adverse shocks of the past year, our banking system remains healthy and well-regulated, and firm and household balance sheets are for the most part in good shape. Also helpful is that inflation has recently been not only low but quite stable, with one result being that inflation expectations seem well anchored. For example, according to the University of Michigan survey that underlies the index of consumer sentiment, the median expected rate of inflation during the next five to ten years among those interviewed was 2.9 percent in October 2002, as compared with 2.7 percent a year earlier and 3.0 percent two years earlier–a stable record indeed.</i></div>
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<i>The second bulwark against deflation in the United States, and the one that will be the focus of my remarks today, is the Federal Reserve System itself. The Congress has given the Fed the responsibility of preserving price stability (among other objectives), which most definitely implies avoiding deflation as well as inflation. I am confident that the Fed would take whatever means necessary to prevent significant deflation in the United States and, moreover, that the U.S. central bank, in cooperation with other parts of the government as needed, has sufficient policy instruments to ensure that any deflation that might occur would be both mild and brief.</i></div>
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<i>Of course, we must take care lest confidence become over-confidence. Deflationary episodes are rare, and generalization about them is difficult. Indeed, a recent Federal Reserve study of the Japanese experience concluded that the deflation there was almost entirely unexpected, by both foreign and Japanese observers alike (Ahearne et al., 2002). So, having said that deflation in the United States is highly unlikely, I would be imprudent to rule out the possibility altogether. Accordingly, I want to turn to a further exploration of the causes of deflation, its economic effects, and the policy instruments that can be deployed against it. Before going further I should say that my comments today reflect my own views only and are not necessarily those of my colleagues on the Board of Governors or the Federal Open Market Committee.</i></div>
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<i>Deflation: Its Causes and Effects<br />Deflation is defined as a general decline in prices, with emphasis on the word "general." At any given time, especially in a low-inflation economy like that of our recent experience, prices of some goods and services will be falling. Price declines in a specific sector may occur because productivity is rising and costs are falling more quickly in that sector than elsewhere or because the demand for the output of that sector is weak relative to the demand for other goods and services. Sector-specific price declines, uncomfortable as they may be for producers in that sector, are generally not a problem for the economy as a whole and do not constitute deflation. Deflation per se occurs only when price declines are so widespread that broad-based indexes of prices, such as the consumer price index, register ongoing declines.</i></div>
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<i>The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand–a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers.<a href="" name="f1"></a><a href="http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm#fn1" style="color: #666666; font-weight: bold; text-decoration: initial;">1</a> Likewise, the economic effects of a deflationary episode, for the most part, are similar to those of any other sharp decline in aggregate spending–namely, recession, rising unemployment, and financial stress.</i></div>
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<i>However, a deflationary recession may differ in one respect from "normal" recessions in which the inflation rate is at least modestly positive: Deflation of sufficient magnitude may result in the nominal interest rate declining to zero or very close to zero.<a href="" name="f2"></a><a href="http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm#fn2" style="color: #666666; font-weight: bold; text-decoration: initial;">2</a> Once the nominal interest rate is at zero, no further downward adjustment in the rate can occur, since lenders generally will not accept a negative nominal interest rate when it is possible instead to hold cash. At this point, the nominal interest rate is said to have hit the "zero bound."</i></div>
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<a href="http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm" style="color: #666666; font-weight: bold; text-decoration: initial;">Link to full speech…</a></div>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Why Fed Policy Is Hurting The Economy</span></h1>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background-color: #f4f4f4; font-family: arial, helvetica, clean, sans-serif; line-height: 19px;"> </span><a href="http://scottgrannis.blogspot.com/" rel="nofollow" style="background-color: #f4f4f4; border: 0px; color: #024999; font-family: arial, helvetica, clean, sans-serif; font-size: 12px; line-height: 19px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">scottgrannis.blogspot.com/</a></span></div>
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John Taylor wrote a very interesting article in the <a href="http://online.wsj.com/article/SB10001424127887323375204578267943236658414.html?mod=googlenews_wsj" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;"><em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">Wall Street Journal</em></a> last week, "Fed Policy Is a Drag on the Economy," in which he argues that the Fed has been hurting the economy by keeping short-term interest rates extremely low, and promising to keep them extremely low for a long time. This of course runs directly counter to what we have been led to believe.</div>
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He describes a variety of problems created by super-easy monetary policy (e.g., encouraging people to take on too much risk, creating great uncertainty about the Fed's ability to reverse its QE efforts, making it easy for the federal government to fund its massive spending plans, and forcing other central banks to follow suit). More importantly, perhaps, he argues that very low interest rates create disincentives to save, and this limits the economy's ability to grow. "While borrowers might like a near-zero rate, there is little incentive for lenders to extend credit at that rate. ... lenders supply less credit at the lower rate. The decline in credit availability reduces aggregate demand, which tends to increase unemployment, a classic unintended consequence of the policy."</div>
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In other words, while everyone, including the Fed, thinks that ultra low interest rates provide an important source of stimulus to the economy, it's quite likely that they do just the opposite. The Law of Unintended Consequences strikes yet again.</div>
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Taylor had a somewhat-related blog <a href="http://johnbtaylorsblog.blogspot.com/2013/02/investment-unemployment-link-still-on.html" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">post</a> the other day in which he discusses the "strong inverse relationship between fixed investment and the unemployment rate." He accompanied the post with a chart that got my attention, because I saw a way to improve it.</div>
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<em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">(click to enlarge)</em><a href="http://static.cdn-seekingalpha.com/uploads/2013/2/7/saupload_Fixed_Invstmnt_vs_Unemp.jpg" rel="lightbox" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;"><img src="http://static.cdn-seekingalpha.com/uploads/2013/2/7/saupload_Fixed_Invstmnt_vs_Unemp_thumb1.jpg" style="border: 0px; display: inline; max-width: 480px; outline: 0px; overflow: visible; padding: 0px;" /></a></div>
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The above chart uses the same data as Taylor's original chart, but includes data going back to 1960 (his only went back to 1990). The interpretation of the chart remains the same. There is a strong inverse relationship between fixed investment as a share of GDP (fixed investment includes private residential and nonresidential construction, and private investment in equipment and software) and the unemployment rate, which is a good proxy for the health of the economy. He is careful to note that while the correlation is strong, we cannot infer the direction of causality. But this does illustrate how a lack of investment could go a long way to explaining why the recovery has been so weak.</div>
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It then occurred to me to put his two ideas together, to see if the Fed's monetary policy was correlated with the amount of fixed investment. Where Taylor's <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">WSJ</em> article focuses on how artificially low interest rates limit lending and therefore aggregate demand, and his chart compares fixed investment to the unemployment rate, I wanted to see if there was a link between Fed policy and fixed investment.</div>
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<em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">(click to enlarge)</em><a href="http://static.cdn-seekingalpha.com/uploads/2013/2/7/saupload_Fixed_Invstmnt_vs_Real_FFs.jpg" rel="lightbox" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;"><img src="http://static.cdn-seekingalpha.com/uploads/2013/2/7/saupload_Fixed_Invstmnt_vs_Real_FFs_thumb1.jpg" style="border: 0px; display: inline; max-width: 480px; outline: 0px; overflow: visible; padding: 0px;" /></a></div>
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As the chart above shows, Fed policy is indeed highly correlated to fixed investment (even more so than the unemployment rate is). This fits hand in glove with the first chart, which links fixed investment to the unemployment rate. The red line in the above chart is the real Federal funds rate (using the Core PCE deflator), since that is a good proxy for the degree to which monetary policy is "tight" or "easy."</div>
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This puts some meat on the bones of Taylor's <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">WSJ</em> article. The Fed's unusually accommodative monetary policy stance -- which promises extremely low interest rates (negative in real terms) for a long time to come -- does appear to be a factor in limiting the amount of funds available for investment, and in reducing aggregate demand. And that in turn helps to explain why the recovery has been so weak.</div>
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How else to explain the fact that fixed investment is almost always very strong when monetary policy is very tight, and weak when monetary policy is easy? How else to explain how a decade of extremely low interest rates have failed to stimulate Japan's economy?</div>
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Food for thought and controversy.</div>
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<span style="color: #333333; font-family: verdana, arial, helvetica, clean, sans-serif; font-size: x-small;"><span style="line-height: 20px;"><a href="http://seekingalpha.com/article/1166601-why-fed-policy-is-hurting-the-economy">http://seekingalpha.com/article/1166601-why-fed-policy-is-hurting-the-economy</a></span></span></div>
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<h1 class="title" style="font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 1.25em; line-height: 21px; margin: 0px auto; padding-bottom: 5px;">
Occam's Gold vs Rube Goldberg's Fiat</h1>
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From the 'simplicity' of a Gold Standard to the 'complexity' of our current fiat system, Santiago Capital draws a handy analogy between the over-complicated machines of 'Rube Goldberg' that represents the interactions between the various actors affecting the size and velocity of our monetary base and the 'simplest possible, but no simpler' world of 'Occam's Razor'-prone gold. In two brief presentations, Brent Johnson introduces the two systems and explains that <strong>in order to keep the shark of our economy alive, one of two things must happen: monetary velocity must be maintained or the monetary base must rise</strong>. Obviously both are inflationary. From how the system is designed to its drastic implications, <em>simple, brief, concise, and what to do about it.</em></div>
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Global central banks have "printed" over<b> $11 TRILLION </b>collectively since the financial crisis began in 2008. We have been lead to believe that this was necessary to "get the global economy growing again". I guess not:</div>
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<h1 class="title" style="font-size: 1.25em; line-height: 21px; margin: 0px auto; padding-bottom: 5px;">
Futures Slump As Global Q4 GDPs Dump</h1>
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It started overnight in Japan, where Q4 GDP posted a surprising and disappointing 3rd quarter of declines, then quickly spread to France, whose Q4 GDP declined -0.3% Q/Q missing expectations of a -0.2% drop, down from a +0.1% increase, then Germany, whose GDP also missed expectations of a -0.5% drop, declining from a +0.2% increase to a -0.6% drop, then on to Italy (-0.9% vs Exp. -0.6%, last -0.2%), Portugal (-1.8%, Exp. -1.0%, last -0.9%), Greece (down -6.0%, previously -6.7%), Hungary (-0.9%, Exp. -0.3%), Austria (-0.2%, down from 0.1%), Cyprus (-3.1%, last -2.0%), and so on.</div>
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<a href="http://www.zerohedge.com/news/2013-02-14/futures-slump-global-q4-gdps-dump">READ MORE</a></div>
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WHO IN THEIR RIGHT MIND WOULD BE SELLING THEIR PHYSICAL GOLD AND SILVER AT A DARK TIME LIKE THIS?</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-88399114163661412902013-02-13T19:05:00.002-05:002013-02-13T19:05:57.187-05:00U.S. Gold Is Being Exported To Asia, Especially Hong Kong<div dir="ltr" style="text-align: left;" trbidi="on">
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The US reportedly exported $4 billion in NON-MONETARY gold in December and $36 billion for the year. That is 22 million ounces of exports or so for the year. The US produces 8 million ounces a year .<br />
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Where did the 14 million ounce difference come from?<br />
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Is the Federal Reserve giving all of our Gold away?<br />
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<b style="background-color: #f1faf2;"><b><b><b><b><span style="font-size: large;">U.S. Gold Bars and Coins Find New Home Overseas on Asian Demand</span></b></b></b></b></b><br />
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<b style="background-color: #f1faf2;"><b><b><b>By Frank Tang</b></b></b></b><br />
<b style="background-color: #f1faf2;"><b><b><b>Reuters</b></b></b></b><br />
<b style="background-color: #f1faf2;"><b><b><b>Monday, February 11, 2013</b></b></b></b></div>
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<b style="background-color: #f1faf2;"><b><b><b>NEW YORK -- Booming demand for gold as a store of wealth among Asian investors is driving physical gold bars and coins out of the United States and into Asia.</b></b></b></b></div>
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A growing number of gold vaults for affluent Asians and new precious metals investment products, particularly exchange-traded funds, have led to an exodus of gold owned privately from the United States into emerging economic powers such as China.</div>
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On Friday, Commerce Department data showed U.S. exports of nonmonetary gold, which excludes central bank transactions, soared by 43 percent to $4 billion in December from the previous month.</div>
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That's the highest total and the biggest month-on-month jump in U.S. private gold exports since September 2011, when gold rallied to a record high over $1,920 an ounce. Prices are currently about 14 percent below the peak at $1,643 per ounce.</div>
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Hong Kong accounted for around $2 billion, or half of the nonmonetary gold exports for the month.</div>
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Uncertainty about the U.S. fiscal situation and euro-zone debt crisis have prompted many ultra-rich gold investors to move their bullion holdings to Hong Kong and Singapore from traditional gold hubs in Switzerland, London, and New York.</div>
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"As the Asian market becomes more affluent, we are seeing more private investors looking to move their metals offshore," said Miguel Perez-Santalla, vice president of online precious-metals exchange BullionVault. "People want to have their money next to them."</div>
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A shortage of storage space has been a growing issue in Asia as vaulting companies have not kept up with the pace of inflow of physical bullion, he said.</div>
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U.S. gold exports to Hong Kong have been steadily increasing in the past several years as wealthy Asian individuals looked to diversify their portfolios into gold, said Michael George, a commodity specialist at the U.S. Geological Survey.</div>
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In November, ETF Securities launched three ETFs that are backed by physical precious metal in Hong Kong.</div>
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Some money managers cited the recent U.S. fiscal crisis for the physical gold outflow.</div>
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"The uncertainty over the debt ceiling and fiscal cliff have greatly diminished confidence in the U.S. banking system," said Jeffrey Sica, chief investment officer of SICA Wealth, which manages over $1 billion in client assets.</div>
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George said some of the gold import to Hong Kong could be transferred to China and nearby countries such as Taiwan, which has also seen an increase in U.S. gold imports in recent years.</div>
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Last Tuesday data showed Hong Kong's net gold flow to mainland China jumped 47 percent in 2012 to a record high of 557.478 tonnes, a sign of strong Chinese demand.</div>
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China, the world's second largest economy, has been vying with India to be the world's top gold consumer.</div>
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Gold demand from China is likely to grow around 10 percent in 2013, an official from the trade group World Gold Council said in a recent interview.</div>
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Hong Kong's proximity to the prosperous southern China and free capital-flow environment have benefited the former British colony as China's trading window to the world.</div>
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<a href="http://in.reuters.com/article/2013/02/11/usa-gold-export-idINL1N0BB9CO20130211">http://in.reuters.com/article/2013/02/11/usa-gold-export-idINL1N0BB9CO20130211</a></div>
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<h1 class="title" style="background-color: white; color: #a29061; font-family: Georgia, times, serif; font-size: 16pt; font-weight: normal; margin: 7px auto 0px;">
Sprott sees scrap gold disappearing, expects Comex default</h1>
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<b style="background-color: #f1faf2;"><span class="submitted" style="color: #777777; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 0.8em; font-weight: normal;">Submitted by cpowell on Mon, 2013-02-11 21:05.</span><span class="taxonomy" style="color: #777777; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 0.8em; font-weight: normal;"> Section: <a href="http://gata.org/taxonomy/term/2" rel="tag" style="color: #777777; text-decoration: initial;" title="">Daily Dispatches</a></span></b><br />
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<b style="background-color: #f1faf2;">4p ET Monday, February 11, 2013</b></div>
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<b style="background-color: #f1faf2;">Dear Friend of GATA and Gold:</b></div>
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Sprott Asset Management CEO Eric Sprott today tells King World News that scrap gold supply is disappearing, that he expects the Comex gold futures market to default, and that when it does, gold "will make up for these past two years in no time." An excerpt from the interview is posted at the King World News blog here:</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/11_Sprott_-_Default_Coming_As_850_Tons_Of_Gold_Supply_Vanished.html" style="color: #777777; text-decoration: initial;" title="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/11_Sprott_-_Default_Coming_As_850_Tons_Of_Gold_Supply_Vanished.html">http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/11_Sp...</a></div>
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CHRIS POWELL, Secretary/Treasurer</div>
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<b style="background-color: #f1faf2;"><b style="background-color: #f1faf2;"><b><b><b><b><span style="font-family: 'Times New Roman'; font-size: large; line-height: normal;">Russia, China and Turkey bought the most gold in 2012</span></b></b></b></b></b></b></h2>
<b style="background-color: #f1faf2;"><b><b><b><b><span style="font-family: 'Times New Roman'; font-size: large; font-weight: normal; line-height: normal;"></span><b style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">Posted on 12 February 2013<br />
<img alt="" src="http://www.arabianmoney.net/wp-content/uploads/2013/02/gold.jpg" /><br />
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The World Gold Council has released its latest list of the world’s biggest gold buyers. <u>So who bought the most gold in the past year?</u><br />
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Russia, China and Turkey in that order, and India is out of the top three. Still that looks like the emerging markets hedging against a decline in the US dollar…</b><strong style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">Video Link<br />
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<b style="background-color: #f1faf2;"><b><b><a href="http://www.arabianmoney.net/gold-silver/2013/02/12/russia-china-and-turkey-bought-the-most-gold-in-2012/"><b></b><b>http://www.arabianmoney.net/gold-silver/2013/02/12/russia-china-<br />and-turkey-bought-the-most-gold-in-2012</b></a></b></b></b></div>
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<b style="background-color: #f1faf2;"><b><span style="font-size: medium;"><b><b><b><b><b><b><span style="font-size: large;">Putin's Russia Now World's Largest Gold Bullion Buyer -- Why?</span></b></b></b></b></b></b></span></b></b></div>
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<b style="font-family: 'Times New Roman'; font-weight: normal; line-height: normal;"><span style="font-size: medium;"><b><b><b>Author, 'Oil and Finance: The Epic Corruption Continues'</b></b></b></span></b><br />
<b style="font-family: 'Times New Roman'; font-weight: normal; line-height: normal;"><span style="font-size: medium;"><b><b><b>GET UPDATES FROM Raymond J. Learsy</b></b></b></span></b><br />
<b style="font-family: 'Times New Roman'; font-weight: normal; line-height: normal;"><span style="font-size: medium;"><b><b><b><br /></b></b></b></span></b>
<b><span style="font-size: medium;"><b><b><b><b><b><b><span style="font-family: 'Times New Roman'; font-size: large; font-weight: normal; line-height: normal;"></span><b style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">Posted: 02/12/2013 7:48 am<br />
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<span style="font-size: medium;"><b><b><b><b>On February 10 Bloomberg reported that "</b><a href="http://www.bloomberg.com/news/2013-02-10/putin-turns-black-gold-into-bullion-as-russia-out-buys-world.html"><b>Putin Turns Black Gold Into Bullion as Russia Out-Buys World</b></a><b>," advising that the world's largest oil producer's central bank has added some 570 metric tons of gold over the last several years for a total inventory of 958 tons. This while the likes of Switzerland, France and the Netherlands were selling significant quantities of their gold holdings.</b></b></b></b></span></div>
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<b style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">According to the article, there has been a long tradition of gold-buying/hoarding in Russian history going back to the time of Tsar Alexander II who ordered the government to start amassing gold bullion in 1867. Interestingly, the timing was almost concurrent to Russia's sale of Alaska to the United States for $7.3 million.<br />
Yet purchases of gold under Putin have intensified to the point that Russia, as a matter of national policy and strategy, has surpassed all others in its tempo of gold accumulation. All of which then raises the question of why?<br />
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When Putin tells the central bank "to buy," does he know something that the rest of us do not or can only guess? Certainly there is Putin's predilection, which he has made generally known, that he views the U.S. as endangering the global economy by abusing the dollar. Or as Putin's political ally Evgeny Federov is quoted in the article, "The more gold a country has, the more sovereignty it will have if there is a cataclysm with the dollar, the pound or any other reserve currency."<br />
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All that certainly sounds reasonable enough given the propensity of central banks throughout the world to print their way out of the current financially orchestrated economic morass.<br />
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But is there something else in play? Some two years ago, the U.S. Commodities Futures Trading Commission fined the commodities trading house Conagra $12 million because one of its traders at the time, with but a single trade, purposely pushed the price of oil to $100/bbl for no other reason than being the first to make this historic vanity trade.<br />
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<b></b><a href="http://www.cftc.gov/PressRoom/PressReleases/pr5873-10"><b>CFTC Sanctions ConAgra Trade Group, Inc. $12 Million for Causing a Non-Bona Fide Price to Be Reported in the NYMEX Crude Oil Futures Contract</b></a><b>:</b></div>
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Aug 16, 2010 - U.S. Commodity Futures Trading Commission ... announced the filing and simultaneous settlement of charges against ConAgra Trade Group, ...</blockquote>
<b style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">The trader achieved this milestone by buying a single 1,000 barrel contract on the commodities exchange, requiring a deposit of but $6,500, thereby advancing the quoted price for oil by some 25 cents/bbl to reach the first fabled $100/bbl print.<br />
Consider that if the price of oil can be moved by a single trader, needing only some $6,500 as margin, what can be achieved on our pliable Commodity Exchanges with a trading war chest holding hundreds of millions if not billions?<br />
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<b>In this space early last year, I wrote "</b><a href="http://www.huffingtonpost.com/raymond-j-learsy/oil-embargoessherlock-hol_b_1288687.html"><b>Oil Embargoes, Sherlock Holmes and the Russian Butler</b></a><b>" (02.20.2012), which touched on the importance of oil and, manifestly, its price, to Russia's economy being so deeply dependent on the revenues derived from the sale of its oil and gas. It posited the following:</b></div>
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We have a Russia that is governed by a coven comparable to our Wall Street "ole boys network," namely the alumni of Russia's highly touted secret service, the KGB. The KGB helped form Putin and many of his associates in government. Here was an organization that was the nonpareil master of clandestine intrigue, knowing how to keep secrets. Now in a sense, it is running the country albeit with the trappings of democratic governance.</blockquote>
<b style="font-family: 'Times New Roman'; font-size: medium; font-weight: normal; line-height: normal;">Given the stakes at hand, would it be a real surprise that with its wealth and given the economic and strategic importance of oil revenues to Russia's well being, and with the talent at hand, that Russia is doing whatever it can to keep the price of oil high and ever higher still?<br />
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<b>Very probably, it is not the concern of the collapse of the dollar and other reserve currencies that is motivating Putin to gobble gold, but the core knowledge that the current price of oil is a manipulated mirage aided by his minions and some day, whether sooner or later, will collapse upon itself. That the trading at the Commodity Exchanges' oil derivatives casinos, where the price of crude oil is currently pegged, is a rigged game. (please also see "</b><a href="http://www.huffingtonpost.com/raymond-j-learsy/the-oil-market-plays-casi_b_969251.html"><b>The Oil Market Plays Casino While the Obama Administration Acts as Croupier</b></a><b>" 09.10,11). Now while the going is good, and the price of oil is high, is the moment to pile in the gold because the mirage will eventually implode because it has no foundation in an unencumbered and freely traded marketplace.</b></div>
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<span style="font-size: large;"><b>THE NUMBER ONE REASON TO OWN GOLD</b></span></div>
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<a href="http://www.brotherjohnf.com/archives/130681" rel="bookmark" style="color: #666666; text-decoration: initial;" title="Permanent Link to Gold Chart and Comments">Gold Chart and Comments</a></h2>
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<em><strong>traderdannorcini.blogspot.com / By Dan Norcini / Wednesday, February 13, 2013</strong></em></div>
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Gold continues to work lower as it moves ever closer to a region that has heretofore provided substantial buying support. Bears are attempting to take it down through this support region in the hope of picking off the rather large contingent of sell stops sitting just under the market.</div>
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It should be noted that they have strategically used the Chinese Lunar New Year holiday week to press their case. Without that strong physical offtake, speculators on the Comex have lost an important ally. It will be interesting to see what happens next week when that period in China is finished.</div>
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By then however, it may be too late for the bulls. This market looks heavy to me. Note that on the technical chart, one of the indicators that I still use ( it is dated but still a very good tool) shows that the ADX of the Directional Movement Indicator is beginning to turn up from a very low level. A rising ADX (the dark line) is a sign that a market is in a TRENDING PHASE. So far, gold has been in a sideways consolidation pattern or range trade. That is evident from both the price action which has been confined between $1695-$1700 on the top and $1640 or so on the bottom. Along with that, the ADX has been falling which is indicative of a market in such a pattern.</div>
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<a href="http://traderdannorcini.blogspot.com/2013/02/gold-chart-and-comments.html" style="color: #666666; font-weight: bold; text-decoration: initial;" target="_blank"><img alt="" class="aligncenter" height="590" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTckvCDo5UZDMUoVvHl0B6MUQ08r9CjRc4b18KnPzTROb1dVhPYtCt6IjvD7ZKe2kc3BM6Zi9q-rDi3t_ULYUHJviFDvxqoAp5igVIWAcdcu0IOpSE9avrcrV4e7XFQ-YtuCM5c2dQ3-ZT/s1600/Chart20130213125031.png" style="background-color: #f3f3f3; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(221, 221, 221); display: block; margin: 10px auto; padding: 5px;" width="751" /></a></div>
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<a href="http://traderdannorcini.blogspot.com/2013/02/gold-chart-and-comments.html">READ MORE</a></div>
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<span style="font-size: large;"><b>Givin It All Away -BTO</b></span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-61002484967550928372013-02-11T22:47:00.001-05:002013-02-11T22:49:33.320-05:00All Wars Are Bankers' Wars<div dir="ltr" style="text-align: left;" trbidi="on">
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<br /><br />I know I have, on occasion, expressed my sincere belief that the root of ALL EVIL lies in the World's banks, and primarily the US Federal Reserve. I have also said more than once that "unless, and until, ALL the people of the World tell the banks to "f**k off", NOTHING will be as it should be. ...and I honestly believe that "the life we have known" for the past 40 years is nothing more than a lie we have told ourselves in subservience to "the banks" as quite frankly we are a little more than debt slaves to this filth that putrefies our "freedom" and "pursuit of happiness". The sad truth is, we fought a revolution to escape just the debt slave life we live today as a nation.<br /><br />Think I'm crazy? Watch the video...it's only 45 minutes long...I promise a whole lot of history will make a whole lot more sense to you if you do. I wish I had made this video...this is exactly everything that I have learned about while trying to understand why things are "the way things are". You'll probably be asking yourself as you watch, "really?" Well yes, I'm sorry to say, "yes, really"...it's all in the history books, unfortunately there are many that wish history were different, and who go to great efforts to hide the truth and/or rewrite that history.<br /><br />I hate banks...and you should too...here's why:<br /><br /><i>I know many people have a great deal of difficulty comprehending just how many wars are started for no other purpose than to force private central banks onto nations, so let me share a few examples, so that you understand why the US Government is mired in so many wars against so many foreign nations. There is ample precedent for this.</i><br /><div>
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Written and spoken by Michael Rivero. The written version
is here: <a class="yt-uix-redirect-link" data-redirect-href-updated="true" dir="ltr" href="http://www.youtube.com/redirect?q=http%3A%2F%2Fwhatreallyhappened.com%2FWRHARTICLES%2Fallwarsarebankerwars.php&session_token=nKzJeyothTdW1kcoM0CbZiMb7ah8MTM2MDY0NDQ2MkAxMzYwNjMwMDYy" rel="nofollow" target="_blank" title="http://whatreallyhappened.com/WRHARTICLES/allwarsarebankerwars.php">http://whatreallyhappened.com/WRHARTI...</a></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-935320086227385422013-02-04T23:50:00.002-05:002013-02-04T23:50:30.968-05:00The Ultimate Failure Of Ponzi Economics<div dir="ltr" style="text-align: left;" trbidi="on">
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There will be no mention of "failure" or "Ponzi" by the ever blathering "we're in a recovery" mainstream financial news media. When the "big money" sees the economy for what it is, why won't anybody listen to them? Here's <u>your</u> chance!<br />
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Listen to what the five men below have to say about "our economy". I think you'll agree, IT'S A LIE! The CON-fidence men that manipulate our economy 24/7 at the Fed, the Treasury, JP Morgan, Goldman Sachs, et al, will be exposed as traitors...all in good time.<br />
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Is it just a coincidence that this week begins with "new" news of "economic trouble in Europe" just as the US Dollar teeters on support going back to the last round of "bad news" out of Europe in February 2012? I think not. If the Dollar tips over here, the Greatest Ponzi of all time could well go "POOF!", and the prices paid for Precious Metals, Energy, and Food will skyrocket.<br />
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<span style="background-color: white; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 34px; line-height: 38px;"><br />Money for Nothin’ </span><span style="background-color: white; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 34px; line-height: 38px;">Writing Checks for Free</span><br />
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<a href="http://www.pimco.com/EN/Experts/Pages/BillGross.aspx" style="clear: left; color: rgb(148, 134, 113) !important; margin: 6px 0px; text-decoration: initial;">William H. Gross</a></div>
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It was Milton Friedman, not Ben Bernanke, who first made reference to dropping money from helicopters in order to prevent deflation. Bernanke’s now famous “helicopter speech” in 2002, however, was no less enthusiastically supportive of the concept. In it, he boldly previewed the almost unimaginable policy solutions that would follow the black swan financial meltdown in 2008: policy rates at zero for an extended period of time; expanding the menu of assets that the Fed buys beyond Treasuries; and of course quantitative easing purchases of an almost unlimited amount should they be needed. These weren’t Bernanke innovations – nor was the term QE. Many of them had been applied by policy authorities in the late 1930s and ‘40s as well as Japan in recent years. Yet the then Fed Governor’s rather blatant support of monetary policy to come should have been a signal to investors that he would be willing to pilot a helicopter should the takeoff be necessary. “Like gold,” he said, “U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes <strong>at essentially no cost.</strong>”</div>
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Mr. Bernanke never provided additional clarity as to what he meant by “<strong>no cost.</strong>” Perhaps he was referring to zero-bound interest rates, although at the time in 2002, 10-year Treasuries were at 4%. Or perhaps he knew something that American citizens, their political representatives, and almost all investors <span style="text-decoration: underline;">still</span> don’t know: that quantitative easing – the purchase of Treasury and Agency mortgage obligations from the private sector – <span style="text-decoration: underline;">IS</span> essentially costless in a number of ways. That might strike almost all of us as rather incredible – writing checks for free – but that in effect is what a central bank does. Yet if ordinary citizens and corporations can’t overdraft their accounts without criminal liability, how can the Fed or the European Central Bank or any central bank get away with printing “electronic money” and distributing it via helicopter flyovers in the trillions and trillions of dollars?</div>
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Well, the answer is sort of complicated but then it’s sort of simple: They just make it up. When the Fed now writes $85 billion of checks to buy Treasuries and mortgages every month, they really have nothing in the “bank” to back them. Supposedly they own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust. When a primary dealer such as J.P. Morgan or Bank of America sells its Treasuries to the Fed, it gets a “credit” in its account with the Fed, known as “reserves.” It can spend those reserves for something else, but then another bank gets a credit for its reserves and so on and so on. The Fed has told its member banks “Trust me, we will always honor your reserves,” and so the banks do, and corporations and ordinary citizens trust the banks, and “the beat goes on,” as Sonny and Cher sang. $54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up. Amazing!</div>
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<a href="http://www.pimco.com/EN/Insights/Pages/Money-for-Nothin-Writing-Checks-for-Free.aspx">READ MORE</a></div>
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"...with some simple analysis of where we are, I mean we are in the biggest Ponzi scheme of all-time. We are just printing money and people have to realize it’s not a winning proposition.</div>
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We have been doing this since 2008. We get program after program. We’ve been doing it since 2000 in Japan. All to no effect. All we end up with is a stretched out balance sheet. Sooner or later we are going to pay the piper for it, and when we pay the piper, you better be in gold and silver, other precious metals and real things.”</div>
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Eric King: “You said we are in the biggest Ponzi scheme of all-time, is 2013 the year that starts to unwind?”</div>
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<span class="style_1" style="color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-style: normal; opacity: 1;">Sprott:</span> “Well, that really is the $64 million question isn’t it? We have to be getting close. Look at the degree of printing now. We’re up by a substantive amount whether it’s the Japanese, or every month we seem to have a new program with the doubling of the purchases by the Fed that start this month, or Mr. Monti, ‘We’re going to do everything we have to do.’ </div>
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It’s totally ridiculous. If people want to try to fade the Fed and play the game, you can do that. I can guarantee you in the long-run it will all fail. Think about what’s going on in Europe today. They are back in recession. We have all of these programs and we’re back in a deep recession.</div>
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So these policies don’t work. They never were going to work. Everyone wants to believe in them, but they are not going to work. The only thing that’s going to work in the long-run is that real assets will outperform paper assets.”</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/5_Eric_Sprott_-_We_Are_In_The_Biggest_Ponzi_Scheme_Of_All-Time.html">READ MORE</a></div>
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In the following three videos the Ponzi that we call our economy is exposed along with those that have built it in an attempt to steal the wealth of America:</div>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; background-color: transparent; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title=""The Federal Reserve Is a Cartel" - G. Edward Griffin">"The Federal Reserve Is a Cartel" - G. Edward Griffin</span></h1>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; background-color: transparent; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title=""The Federal Reserve Is a Cartel" - G. Edward Griffin"><span style="-webkit-text-size-adjust: auto; color: #333333; font-family: arial, sans-serif; font-size: 13px; font-style: normal; font-weight: normal; line-height: 17px;">G. Edward Griffin discusses the trajectory of the US dollar and the country's political direction with Casey Research Chief Metals & Mining Strategist Louis James.</span></span></div>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; background-color: transparent; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title=""The Federal Reserve Is a Cartel" - G. Edward Griffin"><span style="-webkit-text-size-adjust: auto; color: #333333; font-family: arial, sans-serif; font-size: 13px; font-style: normal; font-weight: normal; line-height: 17px;"><br /></span></span></div>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; background-color: transparent; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title=""The Federal Reserve Is a Cartel" - G. Edward Griffin"><span style="-webkit-text-size-adjust: auto; color: #333333; font-family: arial, sans-serif; font-size: 13px; font-style: normal; font-weight: normal; line-height: 17px;"><br /></span></span></div>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title="The Treasury and the Fed are Robbing Savers - James Rickards">The Treasury and the Fed are Robbing Savers - James Rickards</span></h1>
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<span class="watch-title long-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: pointer; font-size: 0.9em; letter-spacing: -0.05em; margin: 0px; padding: 0px;" title="The Treasury and the Fed are Robbing Savers - James Rickards"><span style="background-color: white; color: #333333; font-family: arial, sans-serif; font-size: 13px; line-height: 17px;">Casey Research's Chief Technology Investment Strategist, Alex Daley sits down with James Rickards, Senior Managing Director at Tangent Capital Partners and author of "Currency Wars", at the latest Casey Research Conference.</span></span></div>
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<span class="watch-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: auto; margin: 0px; padding: 0px;" title="David Stockman - Conversations with Casey">David Stockman - Conversations with Casey</span></h1>
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<span class="watch-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: auto; margin: 0px; padding: 0px;" title="David Stockman - Conversations with Casey"><span style="background-color: white; color: #333333; font-family: arial, sans-serif; font-size: 13px; line-height: 17px;">Casey Research's Chief Technology Investment Strategist Alex Daley sits down with David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan.</span></span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com0tag:blogger.com,1999:blog-7490177925219574159.post-29448653874651515492013-01-30T22:21:00.003-05:002013-01-30T22:30:18.928-05:00US 4th QTR GDP STINKS...But, "The Market Is UP"!!!<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="http://www.cnbc.com/id/100419252">GDP Shows Surprise Drop for US in Fourth Quarter</a></h1>
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<span style="background-color: white; color: #424858; font-family: Arial; font-size: 12px; line-height: 23px;">Published: Wednesday, 30 Jan 2013 | 8:11 AM ET</span></div>
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The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.</div>
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The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.</div>
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The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.</div>
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The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.</div>
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<b><i>[No kidding? I could swear it was only yesterday that the President assured us that by asking the rich to pay "their fair share" of taxes, the economy would flourish and our debt problem would drift away.]</i></b></div>
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Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.</div>
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<b><i>[Yes, the propaganda masters at AP would love for us to believe that <u>government spending cuts </u>"caused" a decline in GDP...After all, the President says we can't cut spending or we will risk America's "recovery". But did the US Government really cut spending in the 4th qtr? </i></b> </div>
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<i><span style="color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;">[...in Q4, the <a href="http://www.zerohedge.com/news/2013-01-30/us-ends-2012-1038-debt-gdp">US added some $312 billion in debt</a>. And more to the point, the US government </span><a href="http://www.fms.treas.gov/mts/mts1212.pdf" style="color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px; text-decoration: initial;">spent a grand total of $907.9 </a><span style="color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;">billion in the same quarter. This compares to $877.1 billion a quarter earlier: $30 billion </span><span style="color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;"><strong>less</strong></span><span style="color: black; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;">.]</span></i></div>
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And those volatile categories offset faster growth in consumer spending, business investment and housing -- the economy's core drivers of growth.</div>
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Another positive aspect of the report: For all of 2012, the economy expanded 2.2 percent, better than 2011's growth of 1.8 percent.<br />
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<b><i>[So, as I see it, The US added $1.2 TRILLION in new debt in 2012 and got a +0.4% increase in <u>annual</u> GDP? Well, at least "the market is up"!]</i></b></div>
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The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay.</div>
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<b><i>[May stay week at the start of the year? That's wishful thinking! Unless their "less take home" pay is temporary, it would be difficult to see the economy gaining much strength anytime soon. But, at least "the market is up"!</i></b></div>
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Subpar growth has held back hiring. The economy has created about 150,000 jobs a month, on average, for the past two years. That's barely enough to reduce the unemployment rate, which has been 7.8 percent for the past two months.</div>
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Economists forecast that unemployment stayed at the still-high rate again this month. The government releases the January jobs report Friday.</div>
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<b><i>[Are these the same economists that forecast 4th qtr GDP would be +1.1%?]</i></b></div>
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The slower growth in stockpiles comes after a big jump in the third quarter. Companies frequently cut back on inventories if they anticipate a slowdown in sales. Slower inventory growth means factories likely produced less.</div>
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Heavy equipment maker Caterpillar, Inc. said this week that it reduced its inventories by $2 billion in the fourth quarter as global sales declined from a year earlier.</div>
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The biggest question going forward is how consumers react to the expiration of a Social Security tax cut. Congress and the White House allowed the temporary tax cut to expire in January, but reached a deal to keep income taxes from rising on most Americans.</div>
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<b><i>[Unless of course you were part of the 77% of Americans whose<u> taxes rose</u> when the Social Security tax cut expired. Buy hey, at least "the market is up"!</i></b></div>
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The tax increase will lower take home pay this year by about 2 percent. That means a household earning $50,000 a year will have about $1,000 less to spend. A household with two high-paid workers will have up to $4,500 less.</div>
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<b><i>[And everybody knows, thanks to AP and the other mainstream news media propaganda masters, that a decrease in incomes will only cause a "temporary" set back to the economy at the start of the year. C'mon, EVERYBODY knows it will get better in the second half of the year. We've been promised that every first half of the year since 2008. We can be certain then that "the market" will be up!]</i></b></div>
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Already, a key measure of consumer confidence plummeted this month after Americans noticed the reduction in their paychecks, the Conference Board reported Tuesday.</div>
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<b><i>[Shhhh, consumer confidence plummeted? You'll ruin everything! No wonder this is in the second to last paragraph of this puff piece...]</i></b></div>
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Economists expected the first reading on gross domestic product to show growth of 1 percent, down from the third quarter's reading of 3.1 percent.</div>
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<a href="http://finance.yahoo.com/news/why-best-looking-gdp-drop-172336698.html">Why This Is 'Best-Looking' GDP Drop You'll Ever See</a></h1>
<a href="http://www.cnbc.com/?__source=yahoo|finance|header||homepage|&par=yahoo" rel="nofollow" style="color: #005790; font-family: arial, helvetica, clean, sans-serif; font-size: 13px; line-height: 16px; text-decoration: initial;" target="_blank"><img alt="CNBC" class="logo" src="http://l1.yimg.com/bt/api/res/1.2/RvJQ.vBOuZKgY7gFAoiFPw--/YXBwaWQ9eW5ld3M7Zmk9Zml0O2g9MjA-/http://l.yimg.com/os/284/2012/06/13/cnbc-byline-and-rr-title-png-210454-png_052435.png" style="background-repeat: no-repeat no-repeat; border: 0px; margin-bottom: 0px; margin-right: 10px; vertical-align: middle;" title="" /></a><cite class="byline vcard" style="color: #777777; display: inline-block !important; font-family: Georgia, Times, 'Times New Roman', serif; font-size: 12px; font-style: normal; vertical-align: middle;">By <span class="fn">Jeff Cox</span> | <span class="provider org">CNBC</span></cite><br />
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Negative economic growth in the fourth quarter provided a scary headline to start Wednesday's trading but probably little else in market impact.</div>
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<span class="yui-editorial-embed" id="yui_3_0_0-2-1359566796493296"><span class="yom-figure yom-fig-left" style="clear: both; display: inline !important; float: left; margin-bottom: 11px; margin-right: 20px; margin-top: 6px; width: 190px;"><img alt="" class="editorial " src="http://l2.yimg.com/bt/api/res/1.2/WUTEuLGgBcQ9xhLvAGGYtA--/YXBwaWQ9eW5ld3M7cT04NTt3PTE5MA--/http://media.zenfs.com/en_us/News/Reuters/2013-01-30T171646Z_1264970847_GM1E91V03J201_RTRMADP_3_MARKETS-STOCKS.JPG" style="background-repeat: no-repeat no-repeat; border: 0px; display: inline;" title="Traders at the New York Stock Exchange, January 30, 2013. REUTERS/Brendan McDermid" width="190" /><span class="legend" style="color: #414141; display: block; font-family: arial; font-size: 12px; line-height: 1.7em; margin: 5px 0px 0px; padding: 0px;">Traders at the New York Stock Exchange, January 30, 2013. REUTERS/Brendan McDermid</span></span></span>In the best light, the headline drop of 0.1 percent in <strong><a href="http://www.cnbc.com/id/44505017?__source=yahoo%7Cinstory%7C&par=yahoo" style="color: #005790; text-decoration: initial;">gross domestic product</a></strong> masked stronger internals regarding consumer and business spending as well as progress in the housing recovery.</div>
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<strong id="yui-tmp-20">(<em style="font-weight: normal;">Read More</em>: <a href="http://www.cnbc.com/id/100419252?__source=yahoo%7Cinstory%7C&par=yahoo" style="color: #005790; text-decoration: initial;">GDP Shows Surprise Drop for US in Fourth Quarter</a>)</strong></div>
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At its worst, the bad news merely provides more cover for a<strong><a href="http://www.cnbc.com/id/43752521?__source=yahoo%7Cinstory%7C&par=yahoo" style="color: #005790; text-decoration: initial;">Federal Reserve</a></strong> intent on churning out stimulus until it determines the economy can survive on its own.</div>
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"I don't think this negative number is going to have much legs," said Jim Paulsen, chief market strategist at Wells Capital Management in Minneapolis.</div>
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The darker scenario, in fact, is actually bullish for stocks, which have ridden the wave of $3 trillion in central bank liquidity to eclipse five-year highs and push towards a new record.</div>
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<b>Fed Chairman Ben Bernanke "has to keep the economy high as a kite. He has to make sure we don't sober up and realize how screwed up we are," said Peter Schiff, founder and CEO at Euro Pacific Capital in New York. "We don't have a real recovery. <span style="color: red;">It's an illusion</span>, it's a drug-induced high. The minute you take away the drugs we come down. We can't stop easing, ever."</b></div>
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[Appropriately 1978, at the height of the last inflationary fiscal fiasco courtesy of the US Federal Reserve]<br />
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<span class="watch-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: auto; margin: 0px; padding: 0px;" title="Doug Casey interviews Peter Schiff"><strong style="background-color: transparent; border: 0px; margin: 0px; padding: 0px;">Published on <span class="watch-video-date" id="eow-date" style="background-color: transparent; border: 0px; margin: 0px; padding: 0px;">Jan 30, 2013</span></strong></span></div>
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<span class="watch-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: auto; margin: 0px; padding: 0px;" title="Doug Casey interviews Peter Schiff">Casey Research chairman Doug Casey interviews financial pundit and author Peter Schiff. Their conversation covers a range of issues: gold, the validity of the US dollar, the Federal Reserve system and the Schiff family's fight with the IRS.</span></div>
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<span class="watch-title yt-uix-expander-head" dir="ltr" style="-webkit-user-select: auto; border: 0px; cursor: auto; margin: 0px; padding: 0px;" title="Doug Casey interviews Peter Schiff">Peter Schiff is a truthsayer. Well worth watching as Peter answers several poignant questions about the economy.</span></div>
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US Ends 2012 With 103.8% Debt To GDP</h2>
<span class="submitted" style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 0.8em; line-height: 17.328125px; margin-bottom: 5px; width: auto;">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;" title="View user profile.">Tyler Durden</a> on 01/30/2013 - 09:38</span><span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;"></span><br />
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Previously, when calculating debt/GDP metrics for the US, we naturally assumed some GDP growth in Q4. Following today's GDP data we now know what Q4 GDP is. We also know that, at least on a preliminary basis, it posted a decline on an annualized basis. This means that we now have an official print for US Debt/GDP as of December 31, 2012. <strong>The numerator, or debt: $16.432 trillion</strong>, or the debt ceiling, which as we know was breached on the same day, and which has yet to be formally raised. <strong>The denominator, or GDP: $15.829 trillion</strong>. This means that the formal debt/GDP is now 103.8% and growing fast.</div>
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<a href="http://www.zerohedge.com/news/2013-01-30/santelli-blasts-bernanke-whatever-youre-doing-it-isnt-working" style="color: black; margin: 0px auto; text-decoration: initial;">Santelli Blasts Bernanke: "Whatever You're Doing, It Isn't Working"</a></h2>
<span class="submitted" style="font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 0.8em; line-height: 17.328125px; margin-bottom: 5px; width: auto;">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden" style="color: #666666; text-decoration: initial;" title="View user profile.">Tyler Durden</a> on 01/30/2013 - 15:35</span><span style="font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13px; line-height: 17.328125px;"></span><br />
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While some would look at the surge in government spending in Q3 last year (ahead of the election) and subsequent plunge in Q4 as conspiratorial, CNBC's Rick Santelli takes a step slightly further back as he draws the analogy between the <strong>mystical monetary experimentation of Ben Bernanke</strong> and his horde of central bank cronies and the<em>"bloodletting of leeching" of medieval medicine providers</em>. The point being that if you were sick in the middle ages, leeches were applied; and if you returned weeks later (still sick), more leeches and blood-letting took place - with <span style="text-decoration: underline;">no lesson learned</span>. The fact that we borrowed $300bn in Q4 and managed a dismally dire drop in GDP growth offers little hope as the world glares agog at the Dow Jones Industrial Average index while Bernanke, six years on from the start of the recession continues to apply the same medicine that has done nothing to resurrect our economy. <strong>In Rick's words, "Whatever you're doing; It isn't working!" </strong><em>and in fact the monetary support could potentially hurt the economy in the medium-term as debt piles up exponentially</em>. An epic rant...<br />
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-58105524021583086822013-01-29T20:59:00.000-05:002013-01-29T20:59:13.149-05:00Silver Shortage? What Silver Shortage?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Is There Really A Physical Silver Shortage?</span></h1>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">by Dave Kranzler</span></div>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">I have a couple different business colleagues who have spoken with bullion smelters who say the market is in short supply right now. Furthermore, Swiss money manager Egon Von Greyerz stated <a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/18_Greyerz_-_We_Are_Now_Seeing_Massive_Shortages_Of_Silver.html" rel="nofollow" style="border: 0px; color: #579fc4; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">yesterday</a>that "we are now seeing very lengthy delays in getting physical silver."</span></div>
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<span itemprop="name" style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">What does all this mean? First, let me say that a "shortage" in physical supply does not mean that I'm saying there is not any physical silver available. But what it does mean is <span style="border: 0px; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">that </span>there are not many interested sellers of actual physical <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">at the</em> <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">current</em> <em style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline; word-wrap: break-word;">price level.</em> To be sure, any shortage of a non-depletable resource can be solved by price. What this means is that we are going to see much higher prices for silver in the coming months, until the new market price is set at a level which balances supply and demand. It's basic economic law.</span></div>
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<span itemprop="name" style="font-family: inherit;"><b><a href="http://seekingalpha.com/article/1121701-is-there-really-a-physical-silver-shortage">READ MORE</a></b></span></div>
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<span itemprop="name" style="font-family: inherit;">[also from Dave Kranzler via http://lemetropolecafe.com [Please subscribe]</span></div>
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<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><b><b><i></i></b></b></b></b></b></span></b></span><br />
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i>Two interesting observations: 1) most of the growth over the past year has been in the eligible inventory. I don't know if you've been following Ted Butler's analysis, but every report now pretty much he goes over the massive flows in and out of the Comex every week. This is something that didn't start occurring until about 4-6 months ago. He's convinced that it is direct evidence that it's a signal of how tight the physical market is. That combined with the SLV/HSBC reports is quite strong circumstantial evidence that SLV and the Comex eligible inventory is being used to put out physical "fires" on a weekly basis. 2) JPM has gone from not being silver vault custodian on the Comex about 18 months ago roughly to now being the third largest custodian. Given that is commonly accepted that JPM is the primary illegal Comex silver manipulator, combined with the fact that is the primary SLV custodian, can only lead one to conclude that JPM, the Comex and SLV are the heart of a massive scheme to cover up just how short the paper market is of physical silver. Just look at the inexplicable delivery to HSBC - the largest Comex silver custodian and no longer an SLV subcustodian - of $876 million worth of 1000 oz silver bars. Now the U.S. Mint and the Royal Canadian Mint are failing to meet the retail investor demand of physical silver. The difference between the Comex and the Mint business is that the mints have no choice but to either make hard physical deliveries or cut off orders. They are both cutting or limiting orders. When you put all of this together and stir it up it, the only conclusion is that the world is massively short physical silver delivery obligations. This is why the Comex long interest is staying so persistently high at the 140,000 contract level despite numerous aggressive cartel raids. We have never seen the silver open interest behave this way under such paper duress. There is a massive physical shortage of delivery obligations derived from the massive paper short, both Comex and OTC derivative based. There is going to be a huge explosion higher in the price of silver at some point in the near future…</i></b></b></b></span></b></span><br />
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i><br /></i></b></b></b></span></b></span>
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i>one more point about the Comex open interest. The true industrial and commercial users of physical silver, the commercial end users as opposed to the bullion banks who are also classified as "commercial," require physical delivery under any circumstances. It is my hunch and it is highly likely that the persistent high level of silver o/i could be attributed to the fact that the commercial end-users of physical stay long regardless of the paper raids. They need the silver to run their businesses. If we could determine if this is the case in terms of a detailed breakdown of the open interest, then my analysis is 100% correct.</i></b></b></b></span></b></span><br />
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i>_______________________</i></b></b></b></span></b></span><br />
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i><br /></i></b></b></b></span></b></span>
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><b><b><b><i><b style="font-size: medium; font-style: normal;"><span style="font-size: medium;"><b><b><b><b><b>Let's refresh our understanding of the difference between <i>registered</i> and <i>eligible</i> status at the Comex.</b></b></b></b></b></span></b></i></b></b></b></span></b></span><br />
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<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><i><b style="font-size: medium; font-style: normal;"><span style="font-size: medium;"><b><b><b>"Comex has two categories of silver in its warehouse.<br /><br />The <i>eligible</i> category means that the silver is in a condition that conforms to the standards of delivery. Size and quality of the bar in other words. It is being stored at the Comex warehouse, but is not offered for delivery into contracts.<br /><br /><i>Registered</i> means that the silver is available for delivery to those who demand bullion by being registered as such with a bullion dealer, in addition to being in a fit condition to satisfy the contract…</b></b></b></span></b></i></span></b></span></blockquote>
<span itemprop="name" style="font-family: inherit;"><b style="background-color: #f1faf2; color: black; font-family: 'Times New Roman'; font-size: medium; line-height: normal;"><span style="font-size: medium;"><i><b style="font-size: medium; font-style: normal;"><span style="font-size: medium;"><b><b><b></b><a href="http://jessescrossroadscafe.blogspot.com/2011/04/silver-eligible-versus-registered-and.html"><b>http://jessescrossroadscafe.blogspot.com/2011/04/silver-eligible-versus-registered-and.html</b></a></b></b></span></b></i></span></b></span><br />
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<a href="http://www.brotherjohnf.com/archives/124906" rel="bookmark" style="color: black; text-decoration: initial;" title="Permanent Link to US MINT RESTARTS RATIONED SILVER EAGLE SALES, REPORTS A RECORD 7.13 MILLION SOLD IN JANUARY!">US MINT RESTARTS RATIONED SILVER EAGLE SALES, REPORTS A RECORD 7.13 MILLION SOLD IN JANUARY!</a></h2>
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<span itemprop="name" style="font-family: inherit;"><a href="http://www.silverdoctors.com/us-mint-restarts-rationed-silver-eagle-sales-reports-a-record-7-13-million-sold-in-january/" style="color: #666666; font-weight: bold; text-decoration: initial;" target="_blank"><img alt="" class="alignleft" height="120" src="http://www.silverdoctors.com/wp-content/uploads/2012/12/USMint.png" style="background-color: #f3f3f3; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(221, 221, 221); float: left; margin: 10px 10px 5px 0px; padding: 5px;" width="180" /></a></span></div>
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<em><strong>silverdoctors.com / By The Doc / January 29, 2013</strong></em></div>
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<strong>The US Mint restarted Silver Eagle sales via allocation/ rationing Monday, and has just updated their month-t0-date sales totals.</strong><br />
<strong>Despite 2 production shutdowns in January, the US Mint has sold a record breaking 7.13 million Silver Eagles in only 10 business days in January, shattering the previous monthly record set in 2011!</strong></div>
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<strong></strong><a href="http://www.silverdoctors.com/us-mint-restarts-rationed-silver-eagle-sales-reports-a-record-7-13-million-sold-in-january/" style="color: #666666; font-weight: bold; text-decoration: initial;" target="_blank">READ MORE</a></div>
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U.S. Mint Silver-Coin Sales Surge After Temporary Suspension</h1>
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<span itemprop="name" style="font-family: inherit;"><cite class="byline" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #6f6f6f; display: block; font-size: 11px; font-style: normal; line-height: 1.3em; margin: 0px; outline: 0px; padding: 0px; position: static !important; vertical-align: baseline; width: 640px;">By <span class="last" style="background-color: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Debarati Roy</span> - <span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000" style="background-color: transparent; border: 0px; display: inline; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Jan 29, 2013 12:06 PM ET</span></cite><cite class="byline" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #6f6f6f; display: block; font-size: 11px; font-style: normal; line-height: 1.3em; margin: 0px; outline: 0px; padding: 0px; position: static !important; vertical-align: baseline; width: 640px;"><span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000" style="background-color: transparent; border: 0px; display: inline; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span></cite><cite class="byline" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #6f6f6f; display: block; font-size: 11px; font-style: normal; line-height: 1.3em; margin: 0px; outline: 0px; padding: 0px; position: static !important; vertical-align: baseline; width: 640px;"><span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000" style="background-color: transparent; border: 0px; display: inline; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span></cite></span></div>
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<span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000" style="background-color: transparent; border: 0px; display: inline; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The <a density="full" href="http://www.usmint.gov/" rel="external" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;" title="Open Web Site">U.S. Mint</a> resumed sales of American Eagle silver coins after being suspended for more than a week because of a lack of inventory.</span></div>
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<span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000" style="background-color: transparent; border: 0px; display: inline; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The Mint sold 1.123 million ounces of the coins yesterday, <a density="sparse" href="http://topics.bloomberg.com/michael-white/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">Michael White</a>, a spokesman in Washington, said in a voice mail left late yesterday in response to questions from <a density="full" href="http://topics.bloomberg.com/bloomberg-news/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">Bloomberg News</a>. Before the suspension, sales this month totaled 6.01 million ounces, according to data on the Mint’s website. That compares with 6.107 million ounces in January 2012. White did not respond to e-mails or a voice mail left today.</span></div>
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Silver futures are up 3.2 percent this month in New York, after advancing 8.3 percent in 2012, as central banks from the U.S. to Japan pledged more stimulus measures to boost economic growth. Global holdings of the metal in exchange-traded funds rose to an all-time high of 19,699 metric tons on Jan. 18.</div>
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“The demand for precious physical metal is surging as the continued global quantitative easing is leading to <a density="sparse" href="http://topics.bloomberg.com/currency-devaluation/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">currency devaluation</a>,” Jeffrey Sica, who helps oversee more than $1 billion as president of SICA Wealth Management, said in a telephone interview from Morristown, <a density="full" href="http://topics.bloomberg.com/new-jersey/" style="background-color: transparent; background-repeat: no-repeat no-repeat; border: 0px; color: #0066cc; margin: 0px; outline: 0px; padding: 0px; text-decoration: initial; vertical-align: baseline;">New Jersey</a>. “People are realizing this is one of the best asset-classes to hold.”</div>
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<b><a href="http://www.bloomberg.com/news/2013-01-29/u-s-mint-silver-coin-sales-surge-after-temporary-suspension-1-.html">READ MORE</a></b></div>
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</span></span><b><span style="font-size: large;">Exclusive: Coming Short Squeeze In Gold To Shock The World</span></b><span itemprop="name" style="font-family: inherit;"><span bgdatestamp="mmm d, yyyy h:MM TT Z" bglocalize="true" class="datestamp" epoch="1359479203000"><div class="tinyText" style="-webkit-text-size-adjust: none; color: black; font-family: 'Times New Roman'; font-size: 1px; font-style: inherit; height: 1px; line-height: 1px; overflow: visible;">
<span style="background-color: transparent; line-height: 1.6em;"><a href="http://www.brotherjohnf.com/archives/124919" rel="bookmark" style="background-color: transparent; color: #666666; font-family: tahoma, arial, sans-serif; font-size: 28px; font-style: inherit; line-height: 1.6em; text-decoration: initial;" title="Permanent Link to Exclusive: Coming Short Squeeze In Gold To Shock The World"><br /></a> </span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><em><strong>kingworldnews.com / January 29, 2013</strong></em></span></div>
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<span style="background-color: transparent; line-height: 1.6em;">Today the outspoken hedge fund manager out of Hong Kong, who recently lit the gold world on fire with his comments about a coming short squeeze in gold, told King World News that managed money around the world is already beginning to convert paper claims on gold into physical metal. Kaye, who 23 years ago worked for Goldman Sachs in mergers and acquisitions, and who is now the founder and principle shareholder of Pacific Group in Hong Kong, strongly believes that “… only a small fraction of investors in the world need to do what we are doing to create an enormous short squeeze (in gold).”</span></div>
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<span style="background-color: transparent; line-height: 1.6em;">KWN will be releasing a series of written interviews today with Kaye which discuss the coming global systemic meltdown, and how it will impact investors and key markets around the world, including gold and silver. Here is what Kaye had to say in part I of this exclusive interview: “We know the claims on gold in the marketplace exceed, depending on various estimates, 100 to 150 times the amount of physical gold known to exist. So when a credible country like Germany has sufficient concerns about whether they can get physical possession and safe storage of fully allocated gold, it’s our contention that any prudent investor should be concerned.”</span></div>
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<span style="background-color: transparent; line-height: 1.6em;">William Kaye continues:</span></div>
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<span style="background-color: transparent; line-height: 1.6em;">“When the music stops, what the leverage in the system should tell you is there aren’t going to be enough chairs. So Germany, as a credible country, is saying, ‘We’re reserving our chair.’ Now this is exactly the type of catalyst that, as investors, we look for as owners of fully allocated gold ourselves.</span></div>
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<span style="background-color: transparent; line-height: 1.6em;">We share many of Germany’s concerns….</span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><b><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/29_Exclusive__Coming_Short_Squeeze_In_Gold_To_Shock_The_World.html">READ MORE</a></b></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><b><span style="font-size: large;">Consumer Confidence in U.S. Falls to Lowest Level Since 2011</span><span style="font-size: 15px;"> </span></b></span><br />
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<span style="background-color: transparent; line-height: 1.6em;"><i>By Jeanna Smialek – Jan 29, 2013 12:23 PM GMT-0300</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i>Confidence among U.S. consumers declined more than forecast in January, reaching the lowest level in more than a year as higher payroll taxes took a bigger bite out of Americans’ paychecks.</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i>The Conference Board’s index decreased to 58.6, the weakest since November 2011, from a revised 66.7 in December, figures from the New York-based private research group showed today. The January reading was lower than the most pessimistic forecast in a Bloomberg survey, which had a median estimate of 64.</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i>The drop in confidence coincides with a two percentage- point increase in the payroll tax used to fund Social Security, a hurdle for consumers after a projected pickup in spending in the fourth quarter. The outlook for employment prospects and incomes also deteriorated this month, today’s data showed.</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i>“The thing that’s particularly troubling is the sizable decline in expectations,” said Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who projected a reading of 61.6. “As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending.”</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i>The 8.1-point slump in the gauge of sentiment from a month earlier was the biggest since August 2011. Estimates of the 73 economists surveyed by Bloomberg ranged from 59 to 70. The measure averaged 53.7 in the recession that ended in June 2009.</i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><i><a href="http://www.bloomberg.com/news/2013-01-29/consumer-confidence-in-u-s-falls-to-lowest-since-november-2011.html" style="color: #666666; font-weight: bold; text-decoration: initial;">More…</a></i></span></div>
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<span style="background-color: transparent; line-height: 1.6em;">May 2013-End of the Road-John Williams</span></h2>
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<span style="background-color: transparent; line-height: 1.6em;"><span style="margin: 0px; padding: 0px 20px 0px 0px;">28 JANUARY 2013</span></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><b style="background-color: transparent; font-family: Arial, Helvetica; font-size: 12px; font-style: inherit; line-height: 21.59375px; margin: 0px; padding: 0px;"><span style="color: black; margin: 0px; padding: 0px;">Greg Hunter’s <a href="http://usawatchdog.com/" style="color: #3c78a7; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank">USAWatchdog.com </a></span></b><span style="background-color: transparent; color: black; font-family: Arial, Helvetica; font-size: 12px; font-style: inherit; line-height: 21.59375px; margin: 0px; padding: 0px; text-decoration: initial;"><a href="http://usawatchdog.com/" style="background-color: transparent; color: #3c78a7; font-family: Arial, Helvetica; font-size: 12px; font-style: inherit; line-height: 21.59375px; margin: 0px; padding: 0px; text-decoration: initial;" target="_blank"> </a></span></span></div>
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<span style="background-color: transparent; line-height: 1.6em;"><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">Anybody who thinks the U.S. is in a so-called recovery isn’t listening to economist John Williams. He contends, </span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;">“We haven’t had a recovery and we’re not about to have one, and it’s getting worse.” </b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">Williams says it’s because, </span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;">“The consumer is in very serious trouble. . . . The average guy is not making it. His income is not keeping up with inflation.” </b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">As far as Congress getting the budget and debt ceiling under control, Williams says,</span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;">“Both sides are faced with devil’s choices.” <span id="more-9891" style="margin: 0px; padding: 0px;"></span></b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">If Congress does not get its financial house in order by the new deadline in mid-May 2013, Williams predicts, </span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;">“It will be the end of the road . . . . They are not going to have another opportunity . . . they are pushing the limit as it is now.” </b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">Williams</span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;"> </b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">says he expects,</span><b style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-transform: none;"> “. . . a negative reaction in the next 3 or 4 months to the dollar.”</b><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;"> Williams adamantly calls for hyperinflation to the U.S. dollar by the end of 2014. Join Greg Hunter as he goes One-on-One with John Williams of </span><a href="http://www.shadowstats.com/" style="color: #3c78a7; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; margin: 0px; padding: 0px; text-decoration: initial; text-transform: none;" target="_blank">Shadowstats.com</a><span style="color: black; font-family: Arial, Helvetica; font-size: 12px; line-height: 21.59375px; text-transform: none;">.</span></span></div>
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<a href="http://www.zerohedge.com/contributed/2013-01-29/china-just-threatened-currency-war-if-fed-doesnt-stop-printing">China Just Threatened a Currency War if the Fed Doesn't Stop Printing</a></h1>
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<span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px;">Submitted by </span><a href="http://www.zerohedge.com/users/phoenix-capital-research" style="background-color: white; color: #666666; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px; text-decoration: initial;">Phoenix Capital Research</a><span style="background-color: white; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 11px; line-height: 17.328125px;"> on 01/29/2013 10:41 -0500</span></div>
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The tension between Central Banks that we noted yesterday continues to worsen. This time it was China and the EU, not just Germany, that fired warning shots at the US Fed.</div>
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A senior Chinese <strong>official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar.</strong></div>
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Asked whether he was worried about the dollar, the chairman of China's sovereign wealth fund, the China Investment Corporation, Jin Liqun, told the World Economic Forum in Davos: "I am a little bit worried."</div>
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<strong>"There will be no winners in currency wars. But it is important for a central bank that the money goes to the right place," Li said.</strong></div>
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Speaking at the same session, <strong>French Finance Minister Pierre Moscovici voiced concern that the euro was becoming overvalued as a result of quantitative easing and other stimulus actions taken by other nations' central banks.</strong></div>
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"Certainly, the level of the euro is high and creates some problem," he said, attributing the single currency's recent gains partly to the return of confidence created by the European Central Bank and euro zone governments in starting to overcome Europe's debt crisis.</div>
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<a href="http://www.reuters.com/article/2013/01/25/us-davos-currencies-idUSBRE90O10620130125" style="color: #666666; text-decoration: initial;">http://www.reuters.com/article/2013/01/25/us-davos-currencies-idUSBRE90O10620130125</a></div>
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So first Germany begins pulling its Gold reserves from the US, and now China and the EU are saying publicly that the Fed’s policies are damaging confidence in the US Dollar.</div>
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This does not bode well for the financial system. The primary role of Central Banks is to maintain confidence in the system. If the Central Banks begin to turn on one another it is only a matter of time before the system breaks down.</div>
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<b><a href="http://www.zerohedge.com/contributed/2013-01-29/china-just-threatened-currency-war-if-fed-doesnt-stop-printing">READ MORE</a></b></div>
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MONDAY, JANUARY 28, 2013/</h2>
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<span style="font-weight: normal;"><span style="font-size: small;">From The Golden Truth</span></span></h3>
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<span style="font-family: Arial, sans-serif;"><span style="font-size: 14px;"><a href="http://www.blogger.com/blogger.g?blogID=7490177925219574159" name="7266543210201145044"></a></span></span><br />
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<a href="http://truthingold.blogspot.com/2013/01/are-currency-wars-for-real.html">Are The Currency Wars For Real?</a></h3>
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<span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">I thought it appropriate to start this piece with a quote from Ludwig Von Mises regarding the global system of "flexible" currencies:</span><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><strong style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">A general acceptance of the principles of the flexible [currency] standard must therefore result in a mutual overbidding between the nations. At the end of this race is the complete destruction of all nations' monetary systems.</strong><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;"> </span><a href="https://mises.org/daily/5927/The-Objectives-of-Currency-Devaluation" rel="nofollow" style="background-color: white; color: #cc0000; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px; text-decoration: initial;" target="_blank">LINK</a><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">That was written in 1949 and essentially prophesied the eventual global currency war that Von Mises visualized unfolding, as countries used currency devaluation strategies in a desperate attempt to prop up their own crumbling economic systems and "protect" their relative export power.</span><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">I am not alone in thinking that we entering a very real and very dangerous global currency war. The highly regarded Comstock Partners issued their view on this four days ago: </span><strong style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">"If we are correct, the U.S. and global economies will contract and there will be a race to the bottom with "competitive devaluations" rampant. All the countries that need exports for economic growth will be very aggressive in the race to the bottom..."</strong><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;"> </span><a href="http://www.comstockfunds.com/default.aspx?act=Newsletter.aspx&category=SpecialReport&newsletterid=1696&menugroup=Home&AspxAutoDetectCookieSupport=1" rel="nofollow" style="background-color: white; color: #cc0000; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px; text-decoration: initial;" target="_blank">LINK</a><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">.</span><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">I remember when I first started looking at the precious metals back in 2001. I read one of James Dines newsletters at the time in which he was promoting gold and mining stocks as the ultimate defense against a global race to devalue currencies to zero. At the time I was unaware that his vision was based on the work by Von Mises fifty years earlier.</span><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><br style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;" /><span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;">Essentially, in a system of flexible, floating national currencies, the currency of each nation achieves relative value in relation to the other currencies based on either relative economic strength or relative supply of the currency. With the weak global economy, nations have resorted to devaluing their own currency in an attempt to keep their respective systems from falling apart from the burdens of too much debt and as a means of making their exports relatively cheaper. The latter strategy is also an attempt to stimulate domestic manufacturing by stimulating foreign demand.</span></div>
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<span style="background-color: white; font-family: Arial, sans-serif; font-size: 14px; line-height: 16.53125px;"><b><a href="http://truthingold.blogspot.com/2013/01/are-currency-wars-for-real.html">READ MORE</a></b></span></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-4170711662073339992013-01-28T22:29:00.001-05:002013-01-28T22:34:07.764-05:00No Time Like The Present To BUY PHYSICAL SILVER<div dir="ltr" style="text-align: left;" trbidi="on">
I added to my physical Silver holdings this morning, did you? I purchased Silver this morning at 30.77 spot, did you?<br />
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With options expiration today in the February COMEX Gold futures, and Silver hovering above its 200 Day moving average at 30.60, it was an easy call if you believe in the upside for the price of Silver. Today just may have been the last chance to purchase Silver below $31 an ounce ever again...but then in this rigged game, who can be sure about anything relative to price.<br />
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A monthly chart of Silver just might help convince you that NOW is the time to be accumulating more physical Silver before this train leaves the station once again.<br />
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Please click on the chart below to enlarge:<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs4DyH252E6il9_CHwBc8B1jpdWAdBF27f5wwJBCdpeFCtX7P8Sd7vKwzuqHNQ-igT4PuM_ia0jQXSk90moeIFnD6pBeW8XGUZhUVM3edlvh4tEyjZhLU9naIqwDmLA5230hyphenhyphenSaf8wJ7M/s1600/Silver+monthly+1-13.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="111" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs4DyH252E6il9_CHwBc8B1jpdWAdBF27f5wwJBCdpeFCtX7P8Sd7vKwzuqHNQ-igT4PuM_ia0jQXSk90moeIFnD6pBeW8XGUZhUVM3edlvh4tEyjZhLU9naIqwDmLA5230hyphenhyphenSaf8wJ7M/s320/Silver+monthly+1-13.jpg" width="320" /></a></div>
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If a picture is worth a thousand words, this MONTHLY chart of Silver worth 1000 ounces!</div>
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As you can see on the chart, Silver is presently coiling into the apex of a Symmetrical Triangle:</div>
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<i>The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a <b>continuation pattern</b>. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. You could also think of it as a contracting wedge, wide at the beginning and narrowing over time. </i>[<a href="http://stockcharts.com/school/doku.php?st=triangle&id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle">read more here</a>]<br />
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Considering the existing uptrend in Silver since 2003, it should be considered highly likely that this Symmetrical Triangle marks a consolidation period in the price of Silver before it breaks higher. Frustrating as it has been to watch Silver drift sideways in a $10 trading range for the past 15 months, a break towards new highs may be only weeks away now.</div>
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As you can see on the chart, Silver has been capped at $35 since September of 2011. This cap is believed to be courtesy of the Evil Empire housed at JP Morgan. I submit that whatever their involvement in the suppression of the price of Silver, it is difficult to argue that the 38% retracement of the fall in Silver from the May 2011 peak to the August 2011 low has <i>also</i> played a significant "technical" role in this cap on the price of Silver at $35 an ounce. </div>
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I submit to you now that a break of the topside trendline of this Symmetrical Triangle will trigger a break of the cap at $35, and subsequently result in a very swift and powerful move higher in the price of Silver over the ensuing months.</div>
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A break of this trendline and cap projects a move higher in Silver by up to $30 an ounce. That's $65 an ounce people. I consider it highly unlikely that even the "Criminals of the CRIMEX" can take Silver much lower from where we are now.</div>
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If you have been waiting to add to your Physical Silver holdings, or are looking to establish a position in the "Best Investment Of Our Generation", there may be no better time than the present.</div>
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<b>BUY PHYSICAL!!!</b></div>
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<a href="http://www.brotherjohnf.com/archives/123905" rel="bookmark" style="color: black; text-decoration: initial;" title="Permanent Link to What To Expect After This Week’s Gold & Silver Smash">What To Expect After This Week’s Gold & Silver Smash</a></h2>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/26_What_To_Expect_After_This_Weeks_Gold_%26_Silver_Smash.html" style="color: #666666; font-weight: bold; text-decoration: initial;"><img alt="" class="aligncenter" height="298" src="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/26_What_To_Expect_After_This_Weeks_Gold_%26_Silver_Smash_files/shapeimage_22.png" style="background-color: #f3f3f3; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(221, 221, 221); display: block; margin: 10px auto; padding: 5px;" width="454" /></a></div>
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<em><strong>kingworldnews.com / January 26, 2013</strong></em></div>
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There has been a great deal of propaganda from the Fed and mainstream media claiming that the world is on the road to recovery. Today one of the wealthiest and most street-smart pros in the business spoke with King World News about the reality of what is really taking place, the gold and silver smash, and where markets are headed from here.</div>
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Rick Rule, who is the CEO of Sprott USA, said, “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s.” The 1970s was an extremely difficult period, and it eventually culminated in a flight from fiat currencies into gold as the world experienced a period of tremendous turmoil.</div>
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Here is what Rick Rule had to say: “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s … By the way, I don’t disagree that there are attempts being made to suppress the price of gold, but the market is bigger than the morons who are trying to suppress it. As far as I’m concerned, the harder they try to suppress it, the bigger the ultimate move will be.</div>
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At some point in time rational people, people who can add and subtract, are going to say, ‘Would I rather have my wealth held in the form of a floating abstraction, like a euro, yen, or US dollar? Or would I rather have an asset that is not simultaneously somebody else’s responsibility? Something that can’t be printed and counterfeited.’</div>
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My suspicion is that over time, more people will become comfortable with gold than they are with fiat currencies … The Chinese government isn’t trying to suppress the price of gold. It’s encouraging Chinese individuals to own gold….</div>
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<b><a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/26_What_To_Expect_After_This_Weeks_Gold_%26_Silver_Smash.html">READ MORE</a></b></div>
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An Inside Look at the Rapidly Escalating Physical Silver Shortage<br />
<span class="P" style="color: black; font-size: 18px;">Silver Doctors</span></div>
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<strong>On Thursday, we alerted readers to the fact that the <a href="http://www.silverdoctors.com/january-us-mint-silver-eagle-sales-pass-6-million-near-all-time-monthly-record/" style="color: #000099; text-decoration: initial;">US Mint had sold out of Silver Eagles</a>, selling over 6 million ounces over the first 9 days of sales in 2013, and was shutting down sales and production of Silver Eagles through at least 1/28, and would ration sales of eagles upon resumption of sales. </strong></div>
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<strong>With a rapidly growing presence in the retail gold and silver market via <a href="http://sdbullion.com/" style="color: #000099; text-decoration: initial;">SDBullion</a>, we have had a unique perspective of the escalating physical silver shortage, and would like to give our readers an inside glimpse of the time-line of events evidencing a growing shortage of physical silver.</strong></div>
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<strong>Full time-line of the developing silver shortage from a wholesale perspective is below:</strong></div>
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<strong><span class="P" style="font-family: Arial, Helvetica, sans-serif; font-size: 18px;">Silver Shortage Time-Line:</span></strong></div>
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<strong>Mid December 2012: US Mint announces 3 week halt of Silver Eagle production as the Mint transitions to 2013 Silver Eagles. Wholesale premiums and retail pricing of Silver Eagles do not change. </strong></div>
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<strong>Late December 2012: Wholesale premiums begin noticeably rising on 90% silver -pre-1965 coins. </strong></div>
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<strong>Monday 1/7: US Mint begins sales of 2013 Silver Eagles</strong></div>
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<strong>Monday, 1/14: Wholesale suppliers run out of 90% face pre-1965 silver coins. Wholesale premiums rise 2-3 fold, and suppliers quote 3 week delays.</strong></div>
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<strong>Tuesday 1/15: SDBullion’s primary supplier informs us that premiums on generic 1 oz rounds are doubling, effective immediately, with a 1-2 week delay on delivery. Delivery on previously placed orders are also delayed 1 week.</strong></div>
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<strong>Wednesday 1/16: Rumors begin to circulate that premiums on Silver Eagles and Silver Maples are set to jump .75/oz imminently. All major suppliers deny the rumor, and state they expect premiums to remain stable for the foreseeable future.</strong></div>
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<strong>Thursday 1/17: 9am: SDBullion’s suppliers all confirm ASE’s are in stock at standard premiums. </strong></div>
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<strong>Thursday 1/17: 3pm: US Mint sends the following communication to authorized purchasers:</strong></div>
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<strong>Authorized Purchasers,</strong></div>
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The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.</div>
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Please feel free to call us if you have any questions.</div>
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Regards,<br />
Jack A. Szczerban<br />
Branch Chief, Precious Metals Group<br />
Department of the Treasury<br />
United States Mint</div>
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<strong>Thursday 1/17: 3:30 pm: SDBullion’s primary ASE supplier raises premiums by .75/oz. </strong></div>
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<strong>Thursday 1/17: 5pm: SDBullion’s primary ASE supplier is sold out of 2013 Silver Eagles</strong></div>
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<strong>Thursday 1/17: 5:30pm: SilverDoctors.com advises readers that the US Mint is sold out of 2013 Silver Eagles</strong></div>
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<strong>Thursday 1/17: 6pm: SDBullion is forced to raise premiums on 2013 Silver Eagles as wholesale supply is rapidly vanishing, and premiums are skyrocketing.</strong></div>
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<strong>Thursday 1/17: 9pm: <a href="http://sdbullion.com/shop/silver/2013-silver-american-eagles/" style="color: #000099; text-decoration: initial;">SDBullion.com</a> sells out of all remaining 2013 Silver Eagles</strong></div>
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<strong>Friday 1/18: 9am: <a href="http://sdbullion.com/shop/silver/2013-silver-american-eagles/" style="color: #000099; text-decoration: initial;">SDBullion</a> is able to procure a small order of 2013 ASE’s from a secondary provider for .75 over normal wholesale premium.</strong></div>
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<strong>Friday 1/18 3pm: Nearly all wholesale bullion dealers are sold out of 2013 ASE’s, wholesale premiums have risen by nearly $1.50 for those wholesalers with any remaining (and rapidly diminishing) inventory. </strong></div>
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<strong>Friday 1/18: 4pm: SDBullion’s primary supplier refuses to honor the new and increased pricing for 1 oz generic rounds agreed to 48 hours prior</strong></div>
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<strong>2013 Silver Eagle retail availability As of Sunday 1/20/2013:</strong></div>
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<strong>Apmex: Sold out</strong><br />
<strong>Provident: Sold Out</strong></div>
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<strong>Tulving: Sold Out</strong></div>
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<strong>Scottsdale: Sold Out</strong></div>
<div class="CSSList" style="color: #000099; font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
<strong><a href="http://sdbullion.com/shop/silver/2013-silver-american-eagles/" style="color: #000099; text-decoration: initial;">SDBullion</a>: Under 500 oz remaining, with one last inventory order en route.</strong></div>
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<strong>With the US Mint not scheduled to begin resumption of ASE sales for another 8 days, at which point it will begin sales with rationing/ allocation, expect premiums on Silver Eagles to continue escalating, and expect supplies of alternate forms of physical silver coins and rounds to begin drying up, as investors turn to Silver Maples, Philharmonics, generic rounds, 10 oz and 100 oz bars as alternatives to the skyrocketing premiums Silver Eagles are commanding.</strong></div>
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With shortages causing panic buying among silver investors, much the way that the recent gun and ammo shortages and threats of gun confiscation have caused massive demand and 2-3 fold increases in prices of guns and lead futures, a similar situation could easily develop quickly in the silver market, particularly with the fact that silver is a Giffen good, and is an extremely small market.</div>
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<a href="http://goldswitzerland.com/" style="color: #000099; text-decoration: initial;">www.silverdoctors.com</a></div>
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<span style="-webkit-text-size-adjust: none; color: #031a95; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px; text-align: left;">_____________________________</span></div>
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<span style="-webkit-text-size-adjust: none; color: #031a95; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;"><br /></span></div>
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<span style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 30px; font-weight: bold; line-height: 36px; text-decoration: underline;">Embry - Powerful Entity Now Battling The Silver Manipulators</span></div>
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<span style="-webkit-text-size-adjust: none; color: #031a95; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">Today John Embry told King World News that a powerful entity is now battling the powers that be in the silver market. Embry, who is Chief Investment Strategist at Sprott Asset Management also spoke about the increase in net-long contracts in the face of the declining silver price, the silver shortage, as well as the gold market. </span><span class="style_16" style="-webkit-text-size-adjust: none; color: #031793; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px; opacity: 1;">Here is what Embry </span><span style="-webkit-text-size-adjust: none; color: #031a95; font-family: Helvetica-Bold, Helvetica, Arial, sans-serif; font-size: 18px; font-weight: bold; line-height: 22px;">had to say in this powerful interview:</span><span class="style_17" style="-webkit-text-size-adjust: none; color: #031a95; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-size: 18px; font-style: italic; font-weight: bold; line-height: 22px;"> </span><span class="style_18" style="-webkit-text-size-adjust: none; font-family: Helvetica-BoldOblique, Helvetica, Arial, sans-serif; font-size: 18px; font-style: italic; font-weight: bold; line-height: 22px; opacity: 1;">“I’m focused on this vicious takedown of gold and silver that’s been ongoing for the last month and a half. I’ve been following this story for the better part of 15 years and I can honestly say I don’t think I’ve ever seen a more intense, day after day takedown.”</span></div>
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John Embry continues:</div>
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“When London opened gold and silver were driven down for about ten consecutive days. The COMEX PM close was lower than the AM opening. This just bespeaks very aggressive manipulation. The question I ask myself is, ‘What’s bothering them? Why do they feel they have to do this?’</div>
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I think there are a lot of reasons....</div>
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<a href="http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/28_Embry_-_Powerful_Entity_Now_Battling_The_Silver_Manipulators.html">READ MORE</a></div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-33176644553534632322013-01-20T10:16:00.000-05:002013-01-20T10:48:17.623-05:00American Crash: Kicking The Can Will Blow Up In Their Face<div dir="ltr" style="text-align: left;" trbidi="on">
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The proverbial "can" we keep hearing about being kicked down the road by our Federal Government as they "attempt to tackle" the Nation's fiscal and debt crisis, is now the the size of a barrel. And this barrel now contains a large nuclear device. Nobody knows for sure when the next kick will detonate this "financial weapon of mass destruction", but be assured that one day in the not to far off future a mushroom cloud will envelope the US Dollar, and decimate the economy of the United States of America.<br />
<br />
If you are reading this, you'll agree that this national catastrophe is inevitable. Sadly, 95% of Americans haven't got a clue about this imminent threat to their well being and "way of life". No, they have been convinced by their government and the mainstream media that a much more potent threat exists in our country today: A Muslim with a box cutter is going to take over the country, a psycho-derelict with a "military assault <i>style</i> weapon" is going to savage their community, or yet another Kardashian sister will bear one more illegitimate child into the world.<br />
<br />
Blind folds and denial will not save the 95% currently in the dark from almost certain personal financial destruction. Only the Truth and physical Gold and Silver will give you a fighting chance to survive when your "way of life" is taken from you in what will seem like the "blink of an eye". [A gun, plenty of ammo, and a good stash of canned goods and water will help also.]<br />
<br />
Just as you can "lead a horse to water, but not make him drink", the Truth is out there for people to consider, but you can't make them think.<br />
<br />
Dr. Paul Craig Roberts has a message every American should here, but few will.<br />
<br />
Dr. Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following.<br />
<br />
Dr. Roberts message is simple and concise:<br />
<br />
<span style="font-size: large;"><b><a href="http://usawatchdog.com/america-is-going-to-crash-big-time-paul-craig-roberts/">America is Going to Crash Big Time</a></b></span><br />
<br />
Paul Craig Roberts was Assistant Treasury Secretary in the Reagan Administration, and he warns, <strong>“America is going to crash big time.” </strong>Dr. Roberts says, <strong>“The real problem is not the fiscal cliff.” </strong>The dollar is on very thin ice. <span id="more-9595"></span>Dr. Roberts says, <strong>“They can’t stop hemorrhaging the debt, and the way they cover that is to hemorrhage the dollar.” </strong>In this real time scenario, Dr. Roberts goes on to say, <strong>“When you have debt pouring out and dollars pouring out, the dollar can’t keep its value forever. At some point, people will run away from it, and it will start abroad.” </strong>Dr. Roberts thinks there is <strong>“an impending collapse of the exchange value,” </strong>and the U.S. dollar could unexpectedly plunge in buying power. Dr. Roberts contends, <strong>“All of a sudden, people walk into Walmart, as usual, and they think they’ve walked into Neiman Marcus.” </strong>Dr.<strong> </strong>Roberts says there are no quick fixes to the bulging debt because <strong>“there’s no way to close this deficit when corporations are moving the tax base off-shore.”</strong> Join Greg Hunter as he goes One-on-One with <a href="http://www.paulcraigroberts.org/" target="_blank">Dr. Paul Craig Roberts</a>.<br />
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-548749856809257042013-01-16T21:18:00.001-05:002013-01-16T21:20:24.477-05:00Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOLHltVcZRdiiDj1aL6_shIepDn4nAXMBWrvsJz6cm3p_bkHTq2k0oHjkzxTJES733WV1IqcheW-hlU6qkIhGRmw_Mk-xBwak-VCd6YG3day5ruRn05SqAzzQDSYwf20It1Tzr3xiROks/s1600/bernanke.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOLHltVcZRdiiDj1aL6_shIepDn4nAXMBWrvsJz6cm3p_bkHTq2k0oHjkzxTJES733WV1IqcheW-hlU6qkIhGRmw_Mk-xBwak-VCd6YG3day5ruRn05SqAzzQDSYwf20It1Tzr3xiROks/s320/bernanke.jpg" width="320" /></a></div>
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Even Ben Bernanke's mother calls him Pinocchio.<br />
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Any thought, belief, or notion that US Fed QE programs will be stopped is unequivocally wrong. If not for the fact that the entire global financial system would collapse if the Fed's money printing were to EVER end, then certainly for the undeniable fact that Bernanke has NEVER gotten it right. <br />
<br />
Ben Bernanke is a world class buffoon, who has gotten a free pass on his always wrong predictions regarding the US and global financial system simply because he holds the post of Chairman of the US Federal Reserve...and is proclaimed to be an "expert" on the 1930s Great Depression.<br />
<br />
Ben Bernanke has an extensive history of making statements that are patently false and inaccurate.<br />
<br />
<b>Bernanke downplays inflation risk of QE3 <br />Worst thing Fed could do would be to hike rates prematurely </b><br />
By Greg Robb, MarketWatch <br />
<br />
<i>WASHINGTON (MarketWatch) — Federal Reserve Chairman Ben Bernanke on Monday played down the fears of some more hawkish central bankers and investors that<br /><br /><b>“I don’t believe significant inflation is going to be the result of any of this,” Bernanke said in a speech at the University of Michigan. </b><br /><br />The Fed has the tools to exit its easy policy stance before inflation appears, he said. <br /><br />The Fed will watch closely to see whether the zero-interest rate policy that has been in place for four years could eventually lead investors to make unwise decisions, creating an asset bubble, he added. <br /><br />Bernanke also said there is a continuing debate over whether Fed policy is a cause of asset bubbles. The Fed has an “open mind” on the issue, he remarked, and will continue to monitor markets and toughen bank supervision to guard against financial instability. <br /><br /><a href="http://articles.marketwatch.com/2013-01-14/economy/36328250_1_economic-outlook-bernanke-president-jeffrey-lacker-inflation-risk">More…</a></i><br />
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Seriously? Perhaps Mr. Bernanke's definition of "significant inflation" needs to be examined. His track record of comments regarding his actions and beliefs as Fed Chairman certainly points to his once again being entirely wrong with his "belief" that the Fed’s aggressive bond-buying program will <i>not</i> lead to higher inflation. </div>
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<br /></div>
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From <b><a href="http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve">10 Things That Every American Should Know About The Federal Reserve</a></b></div>
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<br /></div>
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The mainstream media portrays Federal Reserve Chairman Ben Bernanke as a brilliant economist, but is that really the case?<br />
<br />
Let's go to the videotape.<br />
<br />
The following is an extended excerpt from an article <a href="http://theeconomiccollapseblog.com/archives/bernanke-says-that-any-criticism-of-the-federal-reserve-is-based-on-misconceptions" title="that I published previously">that I published previously</a>....<br />
<br />
----------<br />
<br />
In <a href="http://theeconomiccollapseblog.com/archives/barack-obama-and-ben-bernanke-continue-to-defend-quantitative-easing-but-for-the-rest-of-the-world-the-verdict-is-in-they-hate-it" title="2005">2005</a>, Bernanke said that we shouldn't worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to "full employment"....<br />
<blockquote>
<em>"We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."</em></blockquote>
In <a href="http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_senate_hearings&docid=f:26610.wais" target="_blank" title="2005">2005</a>, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets....<br />
<blockquote>
<em>"With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."</em></blockquote>
In <a href="http://financialservices.house.gov/media/pdf/109-72.pdf" target="_blank" title="2006">2006</a>, Bernanke said that housing prices would probably keep rising....<br />
<blockquote>
<em>"Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."</em></blockquote>
In <a href="http://www.federalreserve.gov/newsevents/testimony/bernanke20070328a.htm" target="_blank" title="2007">2007</a>, Bernanke insisted that there was not a problem with subprime mortgages....<br />
<blockquote>
<em>"At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."</em></blockquote>
In <a href="http://www.msnbc.msn.com/id/22592939/" target="_blank" title="2008">2008</a>, Bernanke said that a recession was not coming....<br />
<blockquote>
<em>"The Federal Reserve is not currently forecasting a recession."</em></blockquote>
A <a href="http://www.cbsnews.com/stories/2008/07/16/business/main4265793.shtml" target="_blank" title="few months">few months</a> before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure....<br />
<blockquote>
<em>"The GSEs are adequately capitalized. They are in no danger of failing."</em></blockquote>
For many more examples that demonstrate the absolutely nightmarish track record of Federal Reserve Chairman Ben Bernanke, please see the following articles....<br />
*"<a href="http://theeconomiccollapseblog.com/archives/say-what-30-ben-bernanke-quotes-that-are-so-stupid-that-you-wont-know-whether-to-laugh-or-cry" title="Say What? 30 Ben Bernanke Quotes That Are So Stupid That You Won’t Know Whether To Laugh Or Cry">Say What? 30 Ben Bernanke Quotes That Are So Stupid That You Won’t Know Whether To Laugh Or Cry</a>"<br />
*"<a href="http://theeconomiccollapseblog.com/archives/is-ben-bernanke-a-liar-a-lunatic-or-is-he-just-completely-and-totally-incompetent" title="Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?">Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?</a>"<br />
___________________________________<br />
<br />
Burn in Hell Bernanke!</div>
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1tag:blogger.com,1999:blog-7490177925219574159.post-53265404953385855892013-01-15T07:55:00.002-05:002013-01-15T07:55:35.902-05:00Petition To Audit The US Treasury Gold Supply<div dir="ltr" style="text-align: left;" trbidi="on">
The Gold Anti-Trust Committee (GATA) and other advocates--who argue the quantity of Gold held by the world's central banks, international bullion banks, and future exchanges is overstated--are backing a petition demanding an assayed public audit of the US Gold Reserve published January 9 on the White House petitions website:<br />
<br />
<b>we petition the obama administration to:</b><br />
<br />
<h1 class="title">
Perform an assayed public audit of all the Treasury's claimed 8,100 tons of gold and net of swaps, loans & sales.</h1>
As of 12/31/2012 the US Treasury claims to hold 261 million ounces of gold at Denver, Fort Knox, West Point and at the Federal Reserve Bank of New York. This bullion was last subjected to a full physical audit in 1953. The gold bars need to be assayed and weighed. Once the gold is verified the paper trail must be audited to determine who really owns the gold; i.e. how much has been loaned to bankers and dealers and sold or swapped to non-Treasury entities including foreign governments. The audit must include professional auditors outside of the Mint, Treasury, GAO, Inspector General and Federal Reserve system.<br />
<br />
<br />
YOU can sign the petition here:<br />
<br />
<a href="https://petitions.whitehouse.gov/petition/perform-assayed-public-audit-all-treasurys-claimed-8100-tons-gold-and-net-swaps-loans-sales/rGyFTLwD">https://petitions.whitehouse.gov/petition/perform-assayed-public-audit-all-treasurys-claimed-8100-tons-gold-and-net-swaps-loans-sales/rGyFTLwD</a><br />
<br />
The petition needs only 25,000 signatures for a formal response from the White House. <br />
<br />
<a href="http://www.zerohedge.com/news/2013-01-11/white-house-petition-publicly-validate-us-treasurys-8100-tons-gold">Sadly</a>, the response will be one <em>denying </em>what the people demand, but it
will be interesting to see just what excuse the White House uses to shoot down
an idea that is far more worthy of people's time and attention than "minting"
coins whose only real symbolism is that America is flat broke.<br />
<br />
_________________________________<br />
<br />
<br />
<h2 class="title">
<a href="http://www.zerohedge.com/news/2013-01-14/it-begins-bundesbank-commence-repatriating-gold-new-york-fed">It
Begins: Bundesbank To Commence Repatriating Gold From New York Fed</a></h2>
<span class="submitted">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden" title="View user profile.">Tyler Durden</a> on 01/14/2013 - 20:32</span>
<img alt="" height="91" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/01/gold%20on%20plane_0.jpg" style="float: left; margin-right: 10px;" width="125" />In what could be a watershed moment for the price,
provenance, and future of physical gold, not to mention the "stability" of the
entire monetary regime based on rock solid, undisputed "faith and credit" in
paper money, <a href="http://www.handelsblatt.com/politik/deutschland%20reserven-bundesbank-will-deutsches-gold-zurueckholen/v_detail_tab_print/7629600.html">German
Handelsblatt reports </a>in an exclusive that the long suffering German gold,
all <em>official </em>3,396 tons of it, is about to be moved. Specifically, it
is about to be partially moved out of the New York Fed, where the majority, or
45% of it is currently stored, as well as the entirety of the 11% of German gold
held with the Banque de France, and repatriated back home to Buba in Frankfurt,
where just 31% of it is held as of this moment. And while it is one thing for a
"<em>crazy, lunatic</em>" dictator such as Hugo Chavez to pull his gold out of
the Bank of England, it is something entirely different, and far less
dismissible, when the bank with the second most official gold reserves in the
world proceeds to <em><span style="text-decoration: underline;"><strong>formally
</strong></span></em>pull some of its gold from the bank with the most. In
brief: <strong>this is a momentous development, one which may signify that the
regime of mutual assured and very much telegraphed - <em>because if the central
banks don't have faith in one another, why should anyone else? </em>- trust in
central banks by other central banks is ending</strong>.<br />
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greg maurerhttp://www.blogger.com/profile/12450775276620823237noreply@blogger.com1