Filed under: Andrew Maguire, Big Banks, corruption, CTFC, Dollar, Federal Reserve, gold, Goldman Sachs, Greenback, Inflation, LBMA, madoff, manipulated market, manipulation, market manipulation, scam, scandal, silver | Tags: gold manipulation, silver manipulation
MUST READ!
Goldman Sachs Whistleblower Exposes Gold and Silver Price Manipulation by JPMorgan Chase
Michael Snyder
Black Listed News
April 12, 2010
For a long time many of us have had very serious suspicions that the prices of gold and silver were being highly manipulated. But now, thanks to the mind blowing testimony of one very brave whistle blower, the blatant manipulation of the world gold and silver markets is being blown wide open. What you are about to read below is absolutely staggering. Once the American people learn how incredibly corrupt the world financial system is, it is going to change everything. The government that we are all trusting to guard the integrity of the financial system is failing to do that job. It turns out that the Commodities Futures Trading Commission has been sitting on solid evidence that the elite banking powers have been openly and blatantly manipulating the price of gold and silver. Even though they were basically handed a “smoking gun”, they have done absolutely nothing with it. But now the information has gone public and the CFTC is red-faced.
Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman’s London office, contacted the CFTC’s Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.
Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits – including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes.
Traders would recognize these signals and would make money shorting precious metals alongside JPMorgan Chase. Maguire explained to the CFTC how there would routinely be market manipulations at the time of option expiries, during non-farm payroll data releases, during commodities exchange contract rollovers, as well as at other times if it was deemed necessary.
On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.
Maguire warned Ramirez that the price of precious metals would be suppressed upon the release of non-farm payroll data on February 5th. As the manipulation of the precious metals markets was unfolding on February 5th, Maguire sent additional emails to Ramirez explaining exactly what was going on.
And it wasn’t just that Maguire predicted that the price would be forced down. It was the level of precision that he was able to communicate to the CFTC that was the most stunning. He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce.
Because of Maguire’s warning, the CFTC was able to watch a crime unfold, right in front of their eyes, in real time.
So what did the CFTC do about it?
Nothing.
Absolutely nothing.
Which is extremely alarming, because the size of this fraud absolutely dwarfs the Madoff or Enron scandals. In fact, this fraud is so gigantic that it is not even worth comparing to any of the other major financial scandals of recent times.
But Maguire did not give up. He sent several more emails to the CFTC detailing the open manipulation of the gold and silver markets.
The CFTC did not reply.
Finally he sent them a final email: “I have honored my commitment to assist you and keep any information we discuss private, however if you are going to ignore my information I will deem that commitment to have expired.”
The reply by the CFTC?
“I have received and reviewed your email communications. Thank you so very much for your observations.”
No action.
No acknowledgement that anything was wrong.
No recognition that a massive crime had been committed.
Fortunately, that was not the end of it.
On March 25th, the CFTC held a hearing on alleged manipulation in the gold market by the major banking powers.
Maguire wanted to testify during that hearing but he was not invited.
But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to testify. GATA has been compiling data on the manipulation of the gold and silver markets for quite a long time now.
Murphy was only given five minutes to deliver his testimony. He raced through his presentation so that he could get as much information on the record as possible.
Very curiously, the live television broadcast of the CFTC hearing suffered a technical failure the minute before Murphy began his testimony. The technical failure was corrected the minute after Murphy was finished.
Coincidence?
Well, it turns out that there were are lot of coincidences surrounding this hearing.
But we’ll get to that in a minute.
When Murphy finished his statement, the panel asked him for some hard proof of market manipulation. Murphy shocked the panel by revealing the name of Maguire and explaining how Maguire had informed the CFTC Enforcement Division of the market manipulation that was taking place by JPMorgan Chase. The CFTC panel seemed stunned by the revelation and seemed reluctant to learn any further and asked nothing else about it.
Video of Murphy’s revelation to the panel is posted below….
In another “coincidence”, Maguire and his wife were subsequently injured and hospitalized when their car was struck by a hit-and-run driver in the London suburbs.
When a bystander who saw the “accident” tried to block the other driver from getting away, the other driver accelerated directly towards the witness, forcing him to leap out of the way to avoid being hit. The hit-and-run driver’s car then hit two additional cars as he left the area.
But Maguire and his wife were fortunate.
In the past, other would-be whistle blowers that had evidence regarding the manipulation in the gold and silver markets died in “unusual accidents” before they were able to bring their evidence to light.
But there were even more “coincidences” surrounding this hearing.
A week before the hearing, the CFTC announced that they had had a fire in the room where its gold and silver records are held.
Isn’t that convenient?
In addition, after the hearing was over, Murphy was contacted by a number of major media outlets for interviews.
Within 24 hours, every single interview was cancelled.
Every single one.
Is that a coincidence too?
It appears that some very powerful people do not want this information to get out.
It also shows how corrupt the mainstream media has become.
This is a story that is so much bigger than the Madoff scandal or the Enron scandal that it is not even funny.
And yet the mainstream media is avoiding it like the plague.
But there were additional bombshells that came out during the hearing as well.
During the hearing it was revealed that the gold manipulators have accumulated a huge short position in gold and that these huge short positions are “naked”, which means that these positions are not hedged.
These massive short positions have put some of the largest financial institutions in the world in an extremely vulnerable position.
In addition, it has now come out that most “gold” that is traded is not backed by the actual metal itself. For years, most people have assumed that the London Bullion Market Association (LBMA), the world’s largest gold market, had actual gold to back up the massive “gold deposits” at the major LBMA banks.
But that is not the case.
People are now realizing that there is very little actual gold in the LBMA system.
When people think they are buying “gold”, they are actually just buying pieces of paper that say they own gold.
In fact, during the CFTC hearings, Jeffrey Christian of CPM Group confirmed that the LBMA banks actually have approximately a hundred times more gold deposits than actual gold bullion.
Uh oh.
So what happens if everyone decides that they want actual physical delivery of their gold?
It would be such a mess that it is painful even to think about it.
The truth is that right now most of the trading activities on the London exchange are just paper for paper.
But people get into gold because they want to be in a real commodity.
In fact, there are thousands of clients around the globe who think they own huge deposits of gold bullion, and are being charged large storage fees on that imaginary bullion, but what they really own are a bunch of pieces of paper.
If there comes a time when everyone starts asking for their gold it is going to create a squeeze of unimaginable proportions.
Maguire explains this situation this way: “for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default.”
The truth is that it is absolutely impossible for the LBMA to ever deliver all the gold and silver owed to the owners of contracts.
Yes, it is a gigantic mess.
But this type of things is not entirely unprecedented. For example, Morgan Stanley paid out several million dollars back in 2007 to settle claims that it had charged 22,000 clients storage fees on silver bullion that did not exist.
But the scale of the fraud going on now is absolutely mind blowing. The following video contains footage from the hearing related to these issues….
So what is the bottom line?
The bottom line is that the precious metals markets are cesspools of fraud and manipulation.
The markets have been suppressed by the major financial institutions for years, and this has created the potential for a “squeeze” in the precious metals markets that could send the prices of gold and silver into the stratosphere.
You see, the reality is that there would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical delivery.
Are you starting to get the picture?
In fact, Maguire claims that the naked short selling scam by the major financial institutions is well into the trillions of dollars, making it by far the biggest financial fraud in history.
Maguire calls what has been going on “financial terrorism”, and he accuses the financial institutions involved in this fraud of “treason” for putting national security at risk.
And national security is at risk.
Because if the true extent of this fraud comes out, it could collapse the entire financial system.
If you have never heard an interview with Andrew Maguire, we encourage you to listen to the audio interview posted below. It will really open your eyes to what is going on in the precious metals markets….
The Century’s Biggest Fraud Revealed
This is one of the biggest financial stories of the decade. Because it is complex, most Americans will not understand it. But the fraud and manipulation in the gold and silver markets has the potential to cause a massive economic collapse even without all of the other factors talked about on this blog.
Some very powerful people have been doing some really, really bad things. Once people understand the truth, they will never look at the financial markets the same way again. Already, faith in the major financial institutions of this country has been shaken by revelations about what has been going on over at Goldman Sachs. The American people have no more appetite for any more financial scandals or for any more Wall Street bailouts. But if the fraud and manipulation taking place in the precious metal markets ever gets totally exposed it will change the U.S. financial system forever.
Please get this information out to as many people as you can. There are a number of very powerful people who are not going to be pleased that sites like this are attempting to get the truth about this massive scandal out.
Filed under: comex, DEBT, Dollar, Economic Collapse, economic depression, Economy, gold, Great Depression, Greenback, hyperinflation, Inflation, mark dice, silver, Stock Market, US Economy, Wall Street
Gold hits record near $1,200 as dollar slips
Reuters
December 1, 2009
Gold hit record highs near US$1,200 an ounce on Tuesday as dollar weakness fuelled buying of the metal as an alternative asset, while investors speculating on more gains were cheered by recovery from last week’s setback.
Spot gold hit a peak of US$1,198.70 an ounce and was bid at US$1,190.20 an ounce at 1315 GMT, against US$1,179.10 late in New York on Monday.
“The fact that we are seeing the dollar weaken is helping to drive gold,” said Ole Hansen, senior manager at Saxo Bank.
He said investors had been encouraged by the strength of gold’s recovery after it fell to below US$1,140 an ounce last week, with the fall being met with strong fund buying.
“Everyone was waiting for that correction, and the way gold recovered suggested there was a lot of buying lurking in the wings (among) people who missed the opportunity to get into the market in the first place,” said Mr. Hansen.
U.S. gold futures for February delivery on the COMEX division of the New York Mercantile Exchange also hit a record US$1,200.50 an ounce and were later up US$9.40 at US$1,191.70.
The dollar index, which tracks the U.S. currency’s performance against a basket of six others, fell on Tuesday as more clarity about Dubai’s debt situation eased some concerns over the region’s stability, lifting risk appetite.
The dollar also pared gains against the yen after comments from the Bank of Japan on monetary policy.
Weakness in the U.S. unit boosts gold’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Other commodity prices also firmed on the back of the weaker dollar, with base metals firming and oil rising more than half a percent to nearly US$78 a barrel.
Gold tends to track crude prices, as the metal can be bought as a hedge against oil-led inflation.
Elsewhere the world’s biggest gold miner, Barrick Gold Corp., said on Tuesday it has completed the elimination of all of its gold hedges as planned. De-hedging has represented a significant source of demand in recent years.
During times of weak prices, gold miners often sell a portion of their future production to protect, or hedge, against the possibility that prices will fall.
When prices rise, as they have done since 2001, the company suffers because the value of the future production it has sold does not increase with the gold price.
In the physical market, the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings rose 2.134 tonnes to 1,129.994 tonnes as of Nov. 30.
Indian gold offtake abated on Tuesday as prices resumed their upward trend, after a modest pick-up in recent sessions when traders stocked up ahead of wedding demand.
Sales of scrap persisted in other parts of Asia on Tuesday, cutting premiums, dealers said.
Analysts say they expect the gold market to continue taking support from fund and other investment demand, and further buying from central banks.
News in early November that India’s central bank had bought 200 tonnes of gold, followed by acquisitions by Russia, Sri Lanka and Mauritius, sparked a 13% price rise that month.
“We expect to see further announcements of Central Bank gold purchases over the coming months as these banks realign their U.S. dollar and other asset holdings,” said Fairfax analyst John Meyer in a note.
On the supply side, Harmony Gold Mining Co., the world’s No. 5 gold miner, said output was suspended at a South African shaft on Tuesday after a fatality.
Among other precious metals, spot silver was bid at US$18.64 an ounce against US$18.45.
Platinum was at US$1,465.50 an ounce against US$1,452, while palladium was at US$376.50 against US$363.50, having earlier touched a high of US$379 an ounce, its firmest since August 2008.
Mark Dice Tries To Give Away One Ounce Gold Coin To Random People
Filed under: bank bailout, China, Credit Crisis, DEBT, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Federal Reserve, global economy, gold, Great Depression, Greenback, hyperinflation, India, Inflation, obama stimulus, peter schiff, Russia, silver, silver shortage, Stock Market, US Economy
GOLD UPDATE – (11/11/2009)
As the market opened today Gold hit an all-time high of $1,117.80-$1,115 per troy ounce, that is nearly a $10 dollar difference from just a few days ago.
The steep rise in gold has many factors but mainly because China, India and Russia are moving towards gold and silver as a storage of wealth, and also the other factor of course is the dollar is in the dumps. Is this a sign of hyper-inflation at our doorstep?
Schiff: Gold could reach $5,000 before dollar death
What silver and gold should you buy?
Filed under: Alex Jones, army, Big Banks, central bank, Coup, Credit Crisis, DEBT, Economic Collapse, Economy, end of america, gas prices, Genocide, global elite, gold, Great Depression, Greenback, Inflation, itnernationalist, Lindsey Williams, New World Order, NWO, Oil, Petrol, Preemptive Strike, preemptive war, silver, Stock Market, Tehran, US Economy, Wall Street, WW3, ww4 | Tags: oil storm
Lindsey Williams: U.S. Economy Will Collapse in 2 Years
NoWorldSystem.com
October 27, 2009
Pastor Lindsey Williams, an insider of the elite who predicted accurately that oil prices would fall to $50 a barrel appeared on the Alex Jones show recently. He said he was told by the financial elite that the U.S. dollar will completely collapse in 2012 and that after 2 years “you will be so poor that you will not be able to rebel”. “In their timeline, inflation will escalate over a period of 2 years,” “gold and silver are all you can rely on! The elite don’t use paper, they laugh at it, it means nothing to them, gold and silver is their currency, and gold and silver will continue to escalate rapidly”.
According to Lindsey he is also worried that within 2 years you won’t even recognize America anymore; “within 2 years you will not recognize the united states of America,” that ” in 2 years everyone will be working for the federal government”. He said it will get so bad that banks all around the world will collapses leaving only 9 major banks in place.; “did you know that they want to narrow it down to 9 major banks?”.
He said after the collapse, the United States will start another major war that will eclipse the Iraq war; “I’m still shaking, I’m am appalled, he said ‘war is planned after 2 years’, folks, they plan these things!” “they have war planned in 2012 or somewhere along in that area and he even told me where it was going to start, how it was going to happen, what would happen”. “It will begin in the middle east, it will spread to the entire world” “Folks, if you have not risen up and rebelled against the tyrants within 2 years… our republic is gone”.
Filed under: Barack Obama, bernanke, Big Banks, China, Credit Crisis, death of u.s. economy, DEBT, deflation, devaluation, Dollar, dollar collapse, dollar dump, Economic Collapse, economic depression, Economy, economy collapse, Euro, Federal Reserve, fiat currency, food market, global economy, gold, gold standard, Great Depression, Greenback, housing market, hyperinflation, imf, Inflation, interest rate cuts, job market, latin america, liquidity, obama, Oppression, peter schiff, private banks, rate cut, silver, stock exchange, Stock Market, subprime, subprime lending, unemployment, US Economy, Wall Street, weimar republic, World Bank, Yen, Zimbabwe
Peter Schiff: Get out of the U.S. Dollar NOW
Filed under: comex, Credit Crisis, DEBT, deflation, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Euro, gas prices, global economy, gold, Great Depression, Greenback, hyperinflation, Inflation, Oil, Petrol, silver, Stock Market, US Economy, Wall Street
ECONOMY: Oil hits $82, Gold $1061, Dollar $1.50 against Euro
Reuters Canada
October 21, 2009
Gold prices clawed back above $1,060 an ounce Wednesday as oil rallied and the euro rose above $1.50 for the first time in 14 months.
The metal continued to take heart from a steadily falling dollar. Investors were turning to gold as the depreciation of global currencies threatened the value of paper assets.
Weak physical demand among jewelers and exchange-traded funds has put gold at the mercy of the currency markets, traders said.
Spot gold was at $1,062.70 an ounce at 3:07 p.m. EDT compared with $1,054.00 late Tuesday in New York.
U.S. December gold futures settled up $4.80 at $1,063.40 an ounce on the COMEX division of the New York Mercantile Exchange.
Prices have been tracking the euro-dollar exchange rate, with gold reaching record highs of $1,070.40 last week as the dollar hit its lowest level in over a year versus the single currency.
“Gold does not seem to have a mind of its own,” said Afshin Nabavi, head of trading at MKS Finance in Geneva. “It all depends on the euro.”
The dollar touched a one-month low against sterling and the euro broke above $1.50 as expectations for low U.S. interest rates weighed on the greenback.
Oil jumped more than 3 percent toward $82 a barrel on Wednesday, its highest level in a year, due to a drawdown in U.S. refined oil inventories and as a rise in U.S. equities which showed optimism about the economy and a potential rebound in energy demand.
However, physical demand for gold remained slow as high prices put off buyers. In India, the world’s biggest gold consumer last year, buyers stuck to the sidelines as demand linked to last week’s festival period petered out.
Among other precious metals, spot silver was at $17.75 an ounce against $17.45.
Filed under: Credit Crisis, DEBT, deflation, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, forex, global economy, gold, Great Depression, Greenback, hyperinflation, Inflation, silver, Stock Market, US Economy, Wall Street
Gold Hits Record $1,070/oz
Noworldsystem.com
October 14, 2009
Gold closed $1,070.70 (FOREX) an ounce on Wednesday but opened at the lowest of $1,050+ today. Both gold and silver made some steep moves these past few weeks as the dollar continues to hit record lows. People on a global level are becoming aware of the dangers of fiat currencies and the value of REAL ASSETS like precious metals, commodities will always be a safe haven for investors in gloomy times especially commodities of high demand and short supply. PMs will continue to move exponentially in the coming months as nothing is being done about unemployment or the collapse of the dollar.
Filed under: Barack Obama, bernanke, Big Banks, Central Banks, China, Credit Crisis, DEBT, deflation, Dictatorship, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, Fascism, Federal Reserve, fiat currency, global bankers, global central bank, gold, gold standard, Goldman Sachs, Great Depression, Greenback, hyperinflation, Inflation, International Bankers, internationalist, internationalists, jim rogers, main street, nixon, obama, Oil, private bank, richard nixon, silver, silver shortage, socialism, Stock Market, tarp, UN, US Economy, Wall Street | Tags: Rich Dad Poor Dad
Robert Kiyosaki: Silver Best Hedge Against Inflation
Robert Kiyosaki is a motivational speaker, businessman, investor and author of the Rich Dad, Poor Dad series. In the following interview with Newsmax.tv Kiyosaki explains the reasons why Americans should be investing in silver.
Kiyosaki says silver is the best hedge against inflation and that in many ways the precious metal is a better investment than gold. He is a very strong buyer of silver and has been investing heavily in for over 10 years.
Why Silver Cannot Lose
Robert Kiyosaki
August 20, 2007
I believe the biggest opportunity today is in silver. I think this precious metal is about to become the most spectacular investment in recent history — bigger than oil, even bigger than Google.
Let me give you some reasons why:
Silver is a consumable industrial commodity.
It’s used in computers, cells phones, and electrical relays. This means that as countries like China, India, and Vietnam, and regions like Eastern Europe, become more modernized, the demand for silver will increase.
Silver is also applied in medicine. One little-known use is as a bactericide, a role silver has filled throughout history. Today, medical devices such as catheters and stethoscopes use silver, and every hospital in the western world uses silver sulfadiazine to prevent infections.
Silver is scarcer than gold.
Gold is hoarded. It’s estimated that 95 percent of all gold ever mined is still around. The exact opposite is true of silver: An estimated 95 percent of all silver ever mined has been consumed.
Forty-five percent of all silver mined is burned up in industrial uses. Jewelry accounts for 28 percent, and 20 percent has been consumed in photography. Only 5 percent is in coins.
Silver supplies are down.
In 1900, it was estimated that the world had 12 billion ounces of silver. By 1990 it had dropped to 2.2 billion ounces. By 2007, the supply was down to 300 million ounces.
Some of the more pessimistic forecasts estimate that the world will be out of silver in about 10 years. This could be catastrophic to the world economy. In 10 years, silver might have as much of an impact on the world economy as $200-a-barrel oil.
Filed under: Big Banks, Bill Maher, Congress, Credit Crisis, DEBT, deflation, Dollar, Economic Collapse, economic depression, Economy, Federal Reserve, global economy, gold, gold standard, Great Depression, Greenback, hyperinflation, Inflation, International Bankers, internationalist, internationalists, jekyll island, JFK, Media, morgans, private banks, Richard Belzer, silver, slavery, Stock Market, US Economy, US Treasury, Wall Street
Richard Belzer calls out Federal Reserve on HBO
Filed under: big bankers, Central Banks, common currency, Credit Crisis, DEBT, Dissent, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, False Flag, Fascism, Federal Reserve, fiat currency, g20, global bankers, global currency, global economy, global elite, global government, Globalism, globalist elite, gold, gold standard, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, interest rate cuts, internationalist, internationalists, Iran, main street, market manipulation, New World Order, NWO, One World Government, private bank, rate cut, Robert Zoellick, Ron Paul, SDR, SDRs, silver, single currency, socialism, super currency, UN, united nations, US Economy, Wall Street, World Bank, world currency
Gold Hits New Record High of $1,043/oz
NoWorldSystem.com
October 6, 2009
Gold has hit a new record this morning at $1,043/oz.
Bank of America predicts gold prices will hit $1,500/oz by 2011 and Peter Schiff an Economic Analyst stated he sees gold reaching $1,500 to $5,000/oz, if the trend of gold keeps going up it would mean the dollar is collapsing.
The Federal Reserve will likely raise interest rates soon, the fed’s plan to save the economy is by continuing to flood the market with fiat dollar that are backed by nothing, the economy is slowly being lowered into the ground like a casket. Ever since the country got off the gold standard the dollar has devalued resulting in inflated prices in all commodities.
The sharp rise of gold from under $1,000 to quickly $1,043 is also likely attributed by the recent G20 and UN meetings discussing the hatred of the dollar as the leading currency in the world market and the desire to move toward a new economic World Order by creating a global fiat currency (SDR bonds) that are printed by the IMF.
Owning gold is really a long term investment and a safe-haven when there’s dreary times; with record debt and unemployment, socialism for the banks and auto corporations, plans for mandatory health-insurance, the failed costly-wars in the middle-east and the hawkish stance against Iran and Pakistan.. it’s going to be one hell of a ride in the next few years.
Ron Paul on Fox News – “We MUST go back to the gold standard”
Filed under: big bankers, Central Banks, CNBC, common currency, Credit Crisis, DEBT, deflation, Dissent, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, Fascism, Federal Reserve, fiat currency, g20, G7, global bankers, global central bank, global currency, global economy, global elite, global government, global treasury, Globalism, globalist elite, gold, gold standard, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, interest rate cuts, internationalist, internationalists, jim rickards, main street, market manipulation, New World Order, NWO, One World Government, Pennsylvania, Pittsburgh, Pittsburgh g20 summit, Pittsburgh summit, Pittsburgh summit 2009, private bank, Protest, rate cut, Robert Zoellick, SDR, SDRs, silver, single currency, socialism, sovereignty, stimulus, Stock Market, super currency, tax, Taxpayers, UN, united nations, US Economy, US Treasury, Wall Street, World Bank, world currency, world government | Tags: Dictatorship, Empire
World Bank and IMF Join Global Attack on U.S. Dollar
Larry Edelson
Money and Markets
October 4, 2009
In my emails to you over the past couple of weeks, I’ve shown you why Washington has no choice but to devalue the dollar — and how global leaders and even the United Nations have joined the attack on the greenback by demanding it be replaced as the world’s reserve currency.
Now, just this week, the International Monetary Fund and the World Bank have begun adding their voices to the international choir calling for a new global reserve currency:
* Last week, World Bank President Robert Zoellick warned that the dollar’s status will be challenged and shouldn’t be taken for granted.
* According to Turkish Deputy Prime Minister Ali Babacan, it’s likely that the role of special drawing rights (SDRs) based on a basket of currencies will be discussed as an alternative to the dollar during meetings of the World Bank and IMF in Istanbul next week.
* Meanwhile, global governments, central banks, companies and investors continue to slash their dollar holdings. According to the IMF, in April through June of this year, the greenback’s share of global currency reserves fell to the lowest level in a decade. Holdings of euros, in contrast, rose to a new all-time record high.
All this adds weight and momentum to the devaluation of the dollar. It is DEFINITELY ON THE TABLE. Indeed, for the first time I can remember, the G-7 finance officials, meeting this weekend, are rumored to be breaking with tradition and choosing not to release a statement on the global economy and currencies.
I feel this is an extremely significant development: At last week’s G-20 meeting, the group officially anointed itself as being in charge of global economic affairs.
Plus, we now have the G-7 refusing to discuss the dollar, which is highly unusual. Many will say that, if the G-7 does indeed refuse to comment on the dollar at this weekend’s meeting, it’s merely a sign they’re beginning to turn the reigns over to the G-20 for currency matters.
Baloney! The G-7 WILL discuss the huge “global economic imbalances” in the world. And to me, that’s code talk for a currency devaluation on the agenda. Members of the G-7 ARE discussing it. They’re just NOT doing it in public.
It reminds me of the 1985 Plaza Accord, where James Baker committed the U.S. to a depreciating dollar, bulldozing over our creditors, and ultimately precipitating the ‘87 crash.
The difference: Back then the U.S. was in a position to lead the devaluation. Today, it’s not. Today, our creditors are going to bulldoze over us.
IMF Catapults From Shunned Agency to Global Central Bank Issuing Debt to the World While U.S. Dollar Plummets
Huffington Post
October 2, 2009
“A year ago,” said law professor Ross Buckley on Australia’s ABC News last week, “nobody wanted to know the International Monetary Fund. Now it’s the organiser for the international stimulus package which has been sold as a stimulus package for poor countries.”
The IMF may have catapulted to a more exalted status than that. According to Jim Rickards, director of market intelligence for scientific consulting firm Omnis, the unannounced purpose of last week’s G20 Summit in Pittsburgh was that “the IMF is being anointed as the global central bank.” Rickards said in a CNBC interview on September 25 that the plan is for the IMF to issue a global reserve currency that can replace the dollar.
“They’ve issued debt for the first time in history,” said Rickards. “They’re issuing SDRs. The last SDRs came out around 1980 or ’81, $30 billion. Now they’re issuing $300 billion. When I say issuing, it’s printing money; there’s nothing behind these SDRs.
SDRs, or Special Drawing Rights, are a synthetic currency originally created by the IMF to replace gold and silver in large international transactions. But they have been little used until now. Why does the world suddenly need a new global fiat currency and global central bank? Rickards says it because of “Triffin’s Dilemma,” a problem first noted by economist Robert Triffin in the 1960s. When the world went off the gold standard, a reserve currency had to be provided by some large-currency country to service global trade. But leaving its currency out there for international purposes meant that the country would have to continually buy more than it sold, running large deficits; and that meant it would eventually go broke. The U.S. has fueled the world economy for the last 50 years, but now it is going broke. The U.S. can settle its debts and get its own house in order, but that would cause world trade to contract. A substitute global reserve currency is needed to fuel the global economy while the U.S. solves its debt problems, and that new currency is to be the IMF’s SDRs.
That’s the solution to Triffin’s dilemma, says Rickards, but it leaves the U.S. in a vulnerable position. If we face a war or other global catastrophe, we no longer have the privilege of printing money. We will have to borrow the global reserve currency like everyone else, putting us at the mercy of the global lenders.
To avoid that, the Federal Reserve has hinted that it is prepared to raise interest rates, even though that would mean further squeezing the real estate market and the real economy. Rickards pointed to an oped piece by Fed governor Kevin Warsh, published in The Wall Street Journal on the same day the G20 met. Warsh said that the Fed would need to raise interest rates if asset prices rose – which Rickards interpreted to mean gold, the traditional go-to investment of investors fleeing the dollar. “Central banks hate gold because it limits their ability to print money,” said Rickards. If gold were to suddenly go to $1,500 an ounce, it would mean the dollar was collapsing. Warsh was giving the market a heads up that the Fed wasn’t going to let that happen. The Fed would raise interest rates to attract dollars back into the country. As Rickards put it, “Warsh is saying, ‘We sort of have to trash the dollar, but we’re going to do it gradually.’ . . . Warsh is trying to preempt an unstable decline in the dollar. What they want, of course, is a stable, steady decline.”
What about the Fed’s traditional role of maintaining price stability? It’s nonsense, said Rickards. “What they do is inflate the dollar to prop up the banks.” The dollar has to be inflated because there is more debt outstanding than money to pay it with. The government currently has contingent liabilities of $60 trillion. “There’s no feasible combination of growth and taxes that can fund that liability,” Rickards said. The government could fund about half that in the next 14 years, which means the dollar needs to be devalued by half in that time.
The Dollar Needs to be Devalued by Half?
Reducing the value of the dollar by half means that our hard-earned dollars are going to go only half as far, something that does not sound like a good thing for Main Street. Indeed, when we look more closely, we see that the move is not designed to serve us but to serve the banks. Why does the dollar need to be devalued? It is to compensate for a dilemma in the current monetary scheme that is even more intractable than Triffin’s, one that might be called a fraud. There is never enough money to cover the outstanding debt, because all money today except coins is created by banks in the form of loans, and more money is always owed back to the banks than they advance when they create their loans. Banks create the principal but not the interest necessary to pay their loans back.
The Fed, which is owned by a consortium of banks and was set up to serve their interests, is tasked with seeing that the banks are paid back; and the only way to do that is to inflate the money supply to create the dollars to cover the missing interest. But that means diluting the value of the dollar, which imposes a stealth tax on the citizenry; and the money supply is inflated by making more loans, which adds to the debt and interest burden that the inflated money supply was supposed to relieve. The banking system is basically a pyramid scheme, which can be kept going only by continually creating more debt.
The IMF’s $500 Billion Stimulus Package:
Designed to Help Developing Countries or the Banks?
And that brings us back to the IMF’s stimulus package discussed last week by Professor Buckley. The package was billed as helping emerging nations hard hit by the global credit crisis, but Buckley doubts that that is what is really going on. Rather, he says, the $500 billion pledged by the G20 nations is “a stimulus package for the rich countries’ banks.”
Why does he think that? Because stimulus packages are usually grants. The money coming from the IMF will be extended in the form of loans.
These are loans that are made by the G20 countries through the IMF to poor countries. They have to be repaid and what they’re going to be used for is to repay the international banks now. . . . [T]he money won’t really touch down in the poor countries. It will go straight through them to repay their creditors. . . . But the poor countries will spend the next 30 years repaying the IMF.
Basically, said Professor Buckley, the loans extended by the IMF represent an increase in seniority of the debt. That means developing nations will be even more firmly locked in debt than they are now.
At the moment the debt is owed by poor countries to banks, and if the poor countries had to, they could default on that. The bank debt is going to be replaced by debt that’s owed to the IMF, which for very good strategic reasons the poor countries will always service. . . . The rich countries have made this $500 billion available to stimulate their own banks, and the IMF is a wonderful party to put in between the countries and the debtors and the banks.
Not long ago, the IMF was being called obsolete. Now it is back in business with a vengeance; but it’s the old unseemly business of serving as the collection agency for the international banking industry. As long as third world debtors can service their loans by paying the interest on them, the banks can count the loans as “assets” on their books, allowing them to keep their pyramid scheme going by inflating the global money supply with yet more loans. It is all for the greater good of the banks and their affiliated multinational corporations; but the $500 billion in funding is coming from the taxpayers of the G20 nations, and the foreseeable outcome will be that the United States will join the ranks of debtor nations subservient to a global empire of central bankers.
Man Throws Shoe at IMF Chief
Filed under: adam kokesh, audit the fed, bernanke, bloomberg, campaign for liberty, Credit Crisis, DEBT, deflation, Dollar, Economic Collapse, economic depression, Economy, end the fed, Federal Reserve, global economy, gold, Great Depression, Greenback, hr 1207, hyperinflation, Income Tax, Inflation, IRS, private banks, Russia, silver, Stock Market, tax, taxes, truth movement, US Economy, Wall Street
Adam Kokesh on Russia Today: Audit the Fed!
Filed under: comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: john embry, kitco, paper investment
Physical Gold Remains Over +1,000 an Ounce
Gold buffalo 1oz coins are trading between 300 to 400 over spot price on ebay.
Market Oracle
October 24, 2008
It appears that there is a common refrain going around the investment community. It goes something like this:
“Gold should be doing better, and, since it isn’t, I am not going to buy it”
Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.
COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can’t produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place
Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.
I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold:
http://noworldsystem.com/2008/10/26..-is-down-when-it-should-be-up/
Demand For Gold Soars
http://www.telegraph.co.uk/financ..-gold-soars-has-price-tumbles.html
Fitch says gold price will hold up reasonably well over 12-18 months
http://www.mineweb.net/mineweb/vie..=Detail
Filed under: Big Banks, comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, food crisis, food market, food prices, food shortage, gas prices, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, nationalization, Oil, Petrol, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: kitco, paper investment, run in banks
Why Gold Is Down When It Should Be Up
Alex_Wallenwein
The Market Oracle
October 13, 2008
Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.
Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.
The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.
However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn’t gold – and that causes even further selling.
Two Losing Bets, Compounded
Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.
Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.
This is the only ‘bare-market’ in real gold the world will see for a long, long time to come.
With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won’t be physical gold that gives.
The system built up around the reputation of Comex-gold as being a price-setting mechanism for real gold plays right into the hands of the financial establishment. The establishment depends for its (now increasingly meager) existence on the illusion that gold “isn’t living up to its promise” as a real inflation and disaster hedge. The implication, of course, is that investors might as well stay in the computer blip and paper world.
As the Comex gold price illusion drops, many retail investors are still persuaded to keep their money circulating in the paper world, and that ultimately feeds the system. Of course, by now that ‘feeding’ mechanism looks more like life-support, but try and unhook someone who is on life-support. The results are dramatic, inevitable, immediate – and final.
Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn’t for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won’t have food on their shelves, there won’t be gas a the gas station, and your bank will be shut. Cash doesn’t transfer very well without the bank settlement process.
That’s the problem.
COMEX Gold Drops $681 on October 24, 2008
Filed under: austria, Bank of England, BOE, Britain, Central Banks, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, Europe, european union, Germany, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, Lehman Brothers, london, manipulated economy, manipulated prices, market manipulation, mortgage, mortgage companies, mortgage lenders, nationalization, platinum, silver, silver shortage, south africa, Stock Market, switzerland, UBS, United Kingdom, US Economy, us mint, Wall Street | Tags: HBOS, Jurg Kiener, Krugerrand, run on banks
Gold Runs Out In Germany
Allan Hall
London Evening Standard
October 12, 2008
Risk-averse Germans are turning to gold in troubled times – but there’s none left.
German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.
“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.
“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.
“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”
Gold deliveries now take between four and six weeks.
The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.
South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.
Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven
Bloomberg
October 9, 2008
Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.
“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”
As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.
“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.
British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.
Austria Witnesses New Gold Rush
BBC
October 12, 2008
The financial crisis is prompting people to look for safer forms of investment than stocks and shares.
The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.
Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.
Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.
“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.
Read Full Article Here
Central banks all but stop lending gold
Javier Blas
Financial Times
October 8, 2008
Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.
The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.
Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.
Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.
“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.
John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories
Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html
No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php
Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html
Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx
What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525
Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html
Filed under: Britain, Central Banks, Credit Crisis, DEBT, Dollar, ECB, Economic Collapse, economic depression, Economy, Europe, european central bank, european union, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, london, silver, silver shortage, Stock Market, United Kingdom, US Economy, us mint, Wall Street | Tags: CTFC, gold bars, gold bricks, sweden, switzerland
Reuters
September 25, 2008
The U.S Mint said Thursday it was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.
“Demand has exceeded supply for American Buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins,” the Mint said in a memorandum to authorized American Buffalo dealers.
The Mint also told dealers that it would work to build up its inventory to resume sales shortly.
FT
September 29, 2008
European central banks have cut their sales of gold to the lowest level in almost a decade, reversing the practice of recent years when hefty sales helped depress prices.
Institutions bound by the Central Bank Gold Agreement – the banks of the eurozone plus Sweden and Switzerland – sold about 343 tonnes of gold in the year that expired on Friday, the lowest amount since the first CBGA was signed in 1999.
This compares with 475.8 tonnes in the year to the end of September 2007. Under the agreement, the banks are allowed to sell up to 500 tonnes of gold each year.
The European trend is part of a global movement of reduced central bank selling and increased investor buying that is helping to underpin high prices at a time of turmoil in financial markets.
GFMS, the precious metals consultancy, estimates global central banks will sell 269 tonnes of bullion in 2008, the lowest since 1995.
Much of the selling by European banks took place between October and December last year.
As central banks sell less, investors are rushing into bullion-backed exchange traded funds to such an extent that some analysts refer to the ETFs as the “people’s central bank” because they are now bigger than most countries’ official reserves.
Rich investors are snapping up gold bars
September 30, 2008
Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.
Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.
“There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.”
Gold and silver dealer reports an ‘unprecedented’ shortage of metals
The Post
September 28, 2008
A surge for demand in gold and silver has resulted in an unprecedented shortage of the metals for retail investors in recent days, according to Gold and Silver Investments, a Dublin-based firm that allows retail investors to speculate on movements in the value of precious metals.
Gold and Silver Investments director Mark O’Byrne said the supply of gold and silver available for small retail investors suffered a dramatic deterioration within hours on Friday, as wholesalers reported that government mints and refiners, the primary suppliers of the metals, had stopped offering new supplies.
‘‘It’s absolutely unprecedented,” said O’Byrne, who said the shortages were likely to drive up the costs of gold and silver in the secondary market.
‘‘This did not happen even in the 1930s and the 1970s, and will result in markedly higher prices in the coming months.”
According to O’Byrne, gold and silver were now only easily accessible in the primary market, which consisted of central banks and other major traders of the precious metals.
However, he said that minimum transaction sizes in this market were out of reach for most retail investors – at approximately $350,000 for gold and $135,000 for silver.
Analyst: Dollar May Sink, So Look to $1,500 Gold
http://www.cnbc.com/id/26970932
Central banks favor gold as crisis unfolds
http://www.reut..02?virtualBrandChannel=10338&pageNumber=2
CFTC Relents and Probes Silver Market
http://endthefed.blogspot.com/2008/09..rket.html
Filed under: AIG, bankruptcy, bernanke, Big Banks, Central Banks, CNN, Cold War, Congress, corporatism, Credit Crisis, DEBT, Dictatorship, Dollar, Economic Collapse, economic depression, Economy, Empire, Euro, fannie mae, Fascism, FDIC, Federal Reserve, foreign aid, freddie mac, George Bush, georgia, glenn beck, global economy, gold, Goldman Sachs, Great Depression, Greenback, henry paulson, House, housing market, hyperinflation, Inflation, Lehman Brothers, liquidation, Media, middle class, Military, morgan stanley, mortgage, mortgage companies, mortgage lenders, nationalization, Nazi, Paulson, real estate, Ron Paul, Russia, Senate, silver, Stock Market, subprime, subprime lending, Taxpayers, US Constitution, US Economy, US Treasury, Wall Street, war funding, WW3, ww4 | Tags: john roberts, run on banks
Ron Paul: This Bailout Won’t Be the Last
Ron Paul on CNN w/ John Roberts
Ron Paul Blasts “Secret Government” Running Economy
Filed under: bear sterns, Big Banks, central bank, copper, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, silver, Stock Market, US Economy, us mint | Tags: run on banks
Gold Drops Below $790
Bloomberg
August 14, 2008
Buyers of wedding bands and makers of fillings, take heart: Metals prices fell sharply, following in oil’s footsteps, and as the dollar rallied. Gold lost 8.4% of its value this week, with August gold ending at $786 a troy ounce, below the psychologically significant $800 level. Today alone, the shiny yellow metal lost 2.7%. Gold is down 22% from its record close of $1003.20, reached on March 18; it hit that mark around the time Bear Stearns went belly up, which sent freaked-out investors into hard assets. Silver futures took the gold medal this week, though, in the weekly percentage decline event – August silver fell 16% this week to end at $12.8010 a troy ounce. Almost 10% of that drop came today. A silver lining: Copper fell only 1.7% this week.
U.S. Mint Suspends Gold Eagles
Numis Master
August 14, 2008
The Gold Anti-Trust Action Committee is reporting at their website that The U.S. Mint has suspended sales of American Eagle one ounce gold coins and is refusing orders from dealers.
GATA reports that two coin and bullion dealers have confirmed the suspension by the Mint. This news was initially reported by American Precious Metals Exchange.
Chris Powell, Secretary/Treasurer of GATA, says in a website posting, “The suspension is overwhelming evidence that the futures contract price of gold on the commodities exchanges is substantially below the physical market price and that, indeed, the commodities exchanges are being used as GATA long has maintained – as part of a massive scheme of manipulation of the precious metals, currency, and bond markets.”
As of today, fractional gold (1/10 oz, ¼ oz and ½ oz Gold American Eagles) remain unaffected by the shortage. The mint web site is currently not reporting any suspensions of sales and one ounce uncirculated coins are still for sale at the web site.
Filed under: 2-party system, 2008 Election, 9/11 Truth, Afghanistan, Barack Obama, Condoleezza Rice, Dollar, Economy, energy, False Flag, Federal Reserve, gas prices, global elite, gold, Greenback, hyperinflation, Inflation, Iraq, Israel, jihadist, John McCain, left right paradigm, middle east, mujahideen, nation building, neocons, Neolibs, obama, occupation, ohio, Oil, Petrol, private banks, Russia, silver, Soviet Union, State Sponsored Terrorism, Taliban, US Economy, War On Terror, We Are Change, zbigniew brzezinski
Rice: US would be safe under Obama
AFP
August 7, 2008
US Secretary of State Condoleezza Rice says the nation would be safe under a Barack Obama presidency and that she is ruling out a shot at the vice presidency under either Obama or Republican John McCain.
In an interview with Politico and Yahoo News released Thursday, Rice was asked if she would feel secure with a president Obama.
“Oh, the United States will be fine,” she responded. “I think that we are having an important debate about how we keep the country safe,” she said, pointing to the Middle East and Iraq.
Read Full Article Here
We Are Change Ohio Confronts Barack Obama
Obama: Inflate Your Tires
Filed under: Amero, Australia, bailout, Bank of America, Big Banks, BIS, Britain, Canada, China, Congress, corporations, corporatism, Costa Rica, David Rockefeller, Ecuador, energy, Eugenics, Euro, Europe, european union, exxon mobil, fannie mae, FDIC, Federal Reserve, food market, food prices, food shortage, freddie mac, gas prices, general motors, George Bush, Germany, global economy, global elite, global government, Globalism, gold, housing market, hyperinflation, India, indymac, International Bankers, internationalist, Iran, Japan, job market, liquidation, malthusian catastrophe, Martial Law, Mexico, middle class, mortgage companies, mortgage lenders, mugabe, nationalization, neocons, New World Order, North American Union, Oil, Patriot Act, Petrol, Police State, Population Control, Posse Comitatus, private banks, real estate, rockefeller, rothschild, shell, silver, South America, spain, Stephen Harper, subprime, subprime lending, Taxpayers, United Kingdom, Venezuela, wells fargo, Zimbabwe | Tags: Deutsche Bank, george green, k-mart, run on banks, sears, silver shortage, spanish bank, wells fargo
Stressed banks borrow record amount from Fed
Reuters
July 31, 2008
Banks borrowed a record amount of funds from the Federal Reserve in the latest week as the year old credit crisis took a persistent toll, while the commercial paper market continued to contract, signaling tough conditions for short term borrowers.
Banks’ primary credit borrowings averaged $17.45 billion per day in the latest week, the second straight week this had hit a record and up from $16.38 billion the previous week, Fed data showed on Thursday.
Zimbabwe Devalues Currency
AP
July 30, 2008
Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country’s reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country’s economic and political unraveling.
Shop shelves are empty and there are chronic shortages of everything including medication, food, fuel, power and water. Eighty percent of the work force is unemployed and many who do have jobs don’t earn enough to pay for bus fare.
Inverview with George Green – (7/16/2008)
http://www.politico.com/news/stories/0708/12166.html
Soaring energy bills set to push inflation to 16-year high
http://www.dailymail.co.uk/news/ar..set-push-inflation-16-year-high.html
GM Has $15.5 Billion Loss on U.S. Sales Drop, Leases
http://www.bloomberg.com/apps/news?pid=20601087&sid=agMEuJ_r_yxA&refer=worldwide
Venezuela to Nationalize Spanish Bank
http://english.cri.cn/2947/2008/08/01/1821s388058.htm
IndyMAC Files For Bankruptcy Protection
http://www.nytimes.com/2008..2&ref=business&oref=slogin&oref=slogin
Jobless Claims Up Highest In Five Years
http://www.wnbc.com/news/17049831/detail.html
Inflation Could Hit 6% By Fall?
http://economictimes.indiatimes.com..Economist/articleshow/3307499.cms
Deutsche Bank Writedowns Exceed $11 Billion
http://moneynews.com/financenews/bank_writedowns/2008/07/31/117802.html
Shell reports 33% rise in profit
http://www.iht.com/articles/2008/07/31/business/31shellNEW.php
Exxon posts record $11.68 billion profit
http://money.cnn.com/2008/07/31/news/.._profits/?postversion=2008073109
Britons Skipping Meals Due To Money Worries
http://www.money.co.uk/article/100..-meals-due-to-money-worries.htm
IMF Calls For N. African Economic Integration
Greenspan: Housing No Where Near Bottom
Economic Rebound Not As Energetic As Hoped
Biggest dive for commodities in 28 years
Filed under: 1984, 2-party system, bailout, bear sterns, Big Banks, Big Brother, biometrics, California, central bank, Congress, Control Grid, credit card, credit cards, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, fannie mae, Federal Reserve, forclosure, foreclosures, freddie mac, George Bush, global economy, gold, Great Depression, Greenback, henry paulson, House, housing market, imf, indymac, Inflation, IRS, left right paradigm, liquidation, mortgage lenders, national debt, nationalization, neocons, Neolibs, Oppression, orwell, Paulson, Police State, Propaganda, real estate, Ron Paul, Senate, silver, Stock Market, subprime, subprime lending, Surveillance, Taxpayers, US Economy, us national debt, US Treasury, Wall Street | Tags: fingerprints, housing securities, HR 3221, The American Housing Rescue & Foreclosure Preventio
Taxpayers Will Pay $800 BILLION For Failed Mortgage Lenders
House & Senate passes housing bailout bill H.R. 3221 (The American Housing Rescue & Foreclosure Prevention Act) by an overwhelming 272-152 vote, Bush will sign soon.
Youtube
July 24, 2008
Ron Paul talks about the bailout out of the housing industry and how it really just destroys the dollar and adds enormously to the debt.
Also, slipped into the bill, was the stipulation that ALL credit card transactions must now be reported to the IRS.
Details of today’s housing bill by Dr. Ron Paul:
-$2.5B line of credit to the Treasury (Fannie & Freddie – ‘F & F’) is now “open-ended”
- UNLIMITED – Treasury now allowed to buy all ‘F & F’ housing securities
- Congress no longer involved in appropriating funds (Treasury now does)
-National Debt Ceiling Moved up $800 BILLION (buried in the bill)
–Treasury Bills being exchanged for unwanted ‘F & F’ securities
- This is the asset which “backs up our currency”
- Value of these assets are depreciating
- Treasuries have replaced gold and silver to back US Dollar
– Solution breeds inflation
- Places pressure on the US Dollar
-Mortgage industry workers “will now have to be fingerprinted.”
–All credit card transactions will now be reported to the IRS.
Housing bailout bill – another $800 billion gift from the taxpayer to Wall Street
Related News:
http://market-ticker.denninger.net/archive..GRESS-IMMINENT.html
Investors worldwide are betting more than $1 trillion on a collapse in American stock prices
http://www.wakeupfromyourslumber.com/node/7529
Faber: Fannie, Freddie Should Not Get Aid
http://www.bloomberg.com/apps/n..&sid=a_L_tms03WSI&refer=home
Senate Passes Housing Bill
http://www.axcessnews.com/index.php/articles/show/id/16490
House OKs Fannie Freddie Bailout
http://news.yahoo.com/s/ap/200..Aujs0nZJn4G9TEm4v_o7vh.MwfIE
woman commits suicide as home foreclosed
http://www.norwichbulletin.com/new..suicide-as-home-foreclosed
Fannie and Freddie Own A Record $6.9 Billion Foreclosed Homes
http://www.economicpolicyjournal.co..d-freddie-own-record-69.html
U.S. Foreclosures Double
http://www.bloomberg.com/apps/news..87&sid=aomtw8.Pro2E&refer=home
IMF: U.S. Housing Overvalued By 20%
http://www.reuters.com/article/domesticNews/idUSN2542244220080726
California foreclosures up 261% from ‘07 levels
http://latimesblogs.latimes.com/laland/2008/07/cal-foreclosure.html
Freddie MAC CEO Paid $20 Million A Year
http://money.cnn.com/2008/0.._CEO.ap/index.htm?section=money_latest
Fannie, Freddie rescue pricetag could hit $25B
Housing report bruises Wall Street
Bank of China may hold huge US debt
Dems & Paulson Push Fannie/Freddie Bailout
Filed under: Bank of America, Bear Stearns, bernanke, Big Banks, Britain, central bank, copper, Credit Crisis, DEBT, Dollar, Dow, Economic Collapse, economic depression, Economy, energy, Euro, Europe, european union, fannie mae, Federal Reserve, food market, food prices, freddie mac, gas prices, George Bush, global economy, gold, Great Depression, Greenback, housing market, Illegal Immigration, imf, Immigration, Inflation, Israel, Mexico, mortgage companies, nymex, Oil, Petrol, real estate, silver, stimulus, Stimulus Package, Stock Market, tax, tax rebates, UAE, United Kingdom, US Economy, US Treasury, World Bank | Tags: soybeans, wheat, with corn
Oil Hit Record $147, Gold $969, Euro $1.59
On Friday Oil hit record of $147.27, Gold $969, Euro $1.5972 against the greenback, Today July 14, 2008 11:31 AM EDT Crude price sinks to $145, Gold $969, Euro 1.5859.
AP
July 12, 2008
Gold prices rose Friday, making their largest advance since first hitting $1,000 earlier this year, after another record crude rally and a tumbling stock market led jittery investors to the safety of hard assets.
Other commodities traded mostly higher, with corn, soybeans, wheat and other agriculture futures rising.
Gold’s rally suggests investors are increasingly concerned about rising inflation as Americans struggle with $4 gasoline and the U.S. dollar continues to lose ground against its main rivals.
After a week of volatile trading in the commodities complex, a myriad of dour economic developments pushed gold prices skyward: Oil soared above $147 for the first time, stocks dove on concerns that mortgage companies Freddie Mac and Fannie Mae might collapse and the dollar tumbled further against the euro.
“All of these things are a pretty good recipe for safe-haven buying into bullion,” said James Steel, analyst with HSBC in New York. “You’re really spoiled for choice on a day like this.”
Gold for August delivery added $18.60 to settle at $960.60 an ounce on the New York Mercantile Exchange, after earlier rising as high as $969.10. That was gold’s highest trading level since first cracking the $1,000 threshold on March 13 after the collapse of Bear Stearns & Co.
Nervousness about the U.S. economy, record energy prices and the falling dollar have helped propel gold 34 percent higher in the past year, but it’s not clear if the current climate is gloomy enough to push gold back into record territory.
“The $1,000 mark accompanied a bank failure the last time so it’s questionable whether the situation now is as severe, but that doesn’t mean it won’t go back to that level,” Steel said.
Other precious metals also traded higher. September silver prices added 50 cents to settle at $18.82 an ounce on the Nymex, while September copper gained 2.15 cents to settle at $3.74 a pound.
Euro falls one cent vs dollar from day’s highs
Reuters
July 14, 2008
The euro fell over one cent from the day’s highs against the dollar on Monday, after the U.S. Treasury and Federal Reserve launched emergency steps to restore investor confidence in U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac.
The euro fell to as low as $1.5866 on trading platform EBS, down from an intraday high of $1.5972.
Jim Rogers: Dollar Doomed, Fed Will Fail
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http://www.nydailynews.com/ny_local/2008/07/12/2..siness-2.html
Bush acknowledges ’tough times’
http://rawstory.com/news/afp/Bush_..mes__07112008.html
Dow Drops Below 11,000
http://news.yahoo.com/s/ap/2008..TBWOFUn8JIG0V8Jn7V5dv24cA
Stimulus Checks for the Dead
http://taxprof.typepad.com/taxprof_blog/2008/07/stimulating-the.html
Budget Deficit Twice as Big as Last Year’s
http://www.washingtonpost.com/wp..7.html?hpid=sec-nation
World Bank’s Zoellick: Food Prices High Until 2012
http://www.washingtonpost.com/..AR2008071101987_pf.html
Mexican Illegal Aliens Leaving U.S.
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Experts Worry Euro Might Replace US Dollar as Primary Reserve Currency
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IMF says world economy between recession and inflation
http://uk.news.yahoo.com/rtrs/20..economy-imf-bd5ae06.html
Oil’s Rise Stirs Talk Of $200 A Barrel This Year
http://online.wsj.com/article/SB12..od=hpp_us_whats_news
Bank of Israel to buy more US dollars
http://www.jpost.com/servlet/Satel..me=JPost%2FJPArticle%2FShowFull
Bank of America CEO: Recession “feel” may last year
http://www.reuters.com/article/ousiv/idUSWNAB018220080709
Similarities between 1929 and 2008 terrifying
Emirates calls on GCC countries to depeg currencies from US dollar to curb inflation
Pension plans suffer huge losses
Filed under: Alan Greenspan, bernanke, central bank, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, energy, Euro, Federal Reserve, GDP, Germany, gold, Great Depression, greece, Greenback, housing market, hyperinflation, Inflation, interest rate cuts, job market, rate cut, silver, Stock Market, US Economy, WW2 | Tags: hennecke
Hennecke Says U.S. Faces ’Hyperinflationary Depression’
Filed under: Big Banks, central bank, citigroup, Credit Crisis, DEBT, Dollar, Dow, dow jones, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, gas prices, gold, Great Depression, Greenback, Inflation, interest rate cuts, middle class, New York, Oil, OPEC, Petrol, rate cut, silver, Stock Market, US Economy
Oil Near $143
AP
June 27, 2008
Oil futures climbed to a new record near $143 a barrel Friday as the dollar weakened against the euro, confirming expectations that the falling greenback, a major factor in crude’s stratospheric rise, will extend its decline and add to oil’s appeal.
Retail gas prices inched lower overnight, but are likely to resume their own trek into record territory now that oil futures have broken out of the trading range where they had been for nearly 3 weeks.
Light, sweet crude for August delivery rose as high as $142.99 a barrel on the New York Mercantile Exchange before pulling back sharply in a spate of late-day profit-taking to settle up 57 cents at a record $140.21. On Thursday, the contract shot past $140 and rose more than $5 to a new settlement record.
The latest record came as the dollar fell against the euro in afternoon trading, having traded roughly unchanged for much of the day.
“The dollar was slightly stronger, and when it gave up its gains, that gave oil the green light,” said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.
The market now believes the Federal Reserve is unlikely to raise interest rates in the near future; since higher rates tend to strengthen the dollar, traders are anticipating that it will continue to fall and, consequently, that investors will keep turning to commodities including oil as a hedge against inflation.
“Oil’s back in favor, especially with people bailing out of the stock market,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.
The stock market’s recent swoon is also sending investors in search of higher-yielding investments. On Thursday, the Dow Jones industrial average fell nearly 360 points, and in afternoon trading Friday was down more than 100 points.
OPEC chief sees oil at $150-170 in coming months
Reuters
June 27, 2008
Crude oil prices could rise to as high as $170 per barrel in the coming months but are unlikely to hit $200 and should ease towards the end of the year, OPEC President Chakib Khelil said in an interview on Thursday.
“I forecast prices probably between $150-170 during this summer. That will perhaps ease towards the end of the year,” he told France 24 television, according to a text of the interview released by the station.
Gold Futures Rise as Oil Surges, Dollar Falls
IBT Times
June 27, 2008
Gold futures rose above $930 an ounce on Friday to the highest price in a month as crude oil hit a record high and the U.S. dollar continued to weaken, boosting the investment appeal of the precious metal as a hedge against inflation.
Gold for August delivery rallied $16.20 to end at $931.30 an ounce on the Comex division on the New York Mercantile Exchange. The yellow metal hit an intra-day high of $933 an ounce, the highest for a most-active contract since May 27.
The precious metal posted a weekly gain of $27.60, or 3.1 percent from last Friday’s closing level of $903.70.
Gold is likely to regain $1,000 an ounce by the end of 2008 and work higher through 2009-2010, said John Hill, an analyst at Citigroup, in a research note.
Also on the Nymex, Silver futures for September delivery rose 49 cents, or 2.8 percent, to $17.71 an ounce. The metal climbed 1.8 percent this week and is up 19 percent this year.
http://www.guardian.co.uk/world/2008/jun/25/usa.subprimecrisis
Stocks Mostly Lower Again
http://biz.yahoo.com/ap/080627/wall_street.html?printer=1
The Shrinking Influence of the US Federal Reserve
http://www.spiegel.de/international/world/0,1518,562291,00.html
Money being pulled out of NYC banks: High demand for wire transfers
http://www.waynemadsenreport.com/articles/20080624
Dow Tumbles 360 Points
http://news.yahoo.com/s/ap/200..p7tkyjYvSV08ZQAF3YkzSNv24cA
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