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Stressed banks borrow record amount from Fed

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.

Read Full Article Here

 

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.

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Inverview with George Green – (7/16/2008)

http://video.google.com/videoplay?docid=7618947388652774139&hl=en

Recent News:

Bush signs housing bill in private
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Deutsche Bank Writedowns Exceed $11 Billion
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Shell reports 33% rise in profit
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Exxon posts record $11.68 billion profit
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Britons Skipping Meals Due To Money Worries
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IMF Calls For N. African Economic Integration
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U.S. Economic Collapse News Archive

 



Why Silver Cannot Lose

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.

 

Strange Silver Price Gyrations and Shortage

Edgar Steele
Rense
March 23, 2008

It’s just like pro rasslin’, maw. He’s up … he’s down … he’s been thrown completely out of the ring and landed in the laps of New York’s governor and his … is that his wife? What’s this? Silver is down yet another dollar-something today, after being down over a buck and a half yesterday? So, the stock market must be up a gazillion points, eh? Nope.

Then, the dollar – they must have struck the world’s biggest gusher on the White House lawn? Nope. But the dollar is up – way up. Will it stay up? Nope.

This is a simple takedown, folks. Artificial manipulation by the big boys, designed to force out what they dismiss as “weak hands” holding silver. Well, don’t pay attention. We’re in this for the long haul. In fact, if yesterday was such a great time to buy more silver, then today must be an even better day, right? That’s absolutely correct! Go the head of the line and really load ’em up this time!

Aggravating this correction in the price of silver is the exit from paper silver of those who have gotten too nervous by this manipulated and phony downtake.

My pal the chart freak says that this is a standard Fibonacci retracement from a base price of $9.85. Meaning that those who bought in on paper (ETFs and futures) at around $9 or $10 now finally are selling and counting themselves lucky to have the profits they just booked. Standard stuff, he says, while silver consolidates and builds a new base in this area, preparatory to heading higher…much higher. And soon, at that.

One day soon, paper silver will be shown to be the fraud that it is when sellers are unable to deliver the physical that somebody bought. Then physical will rule. That is when the moon shot comes. And, to be on board, you have to be holding the real thing, physically…in your hands.

Meanwhile, local dealers have jacked their margin up from .50 an ounce to .85 and higher. APMEX pushed theirs up 9 cents yesterday and today, you can’t even buy anything from them except 100-oz bars, “generic” .999 silver and junk coins.

So, nobody wants silver so badly that its price takes a $3 nosedive in the course of about 24 hours. On the other hand, just try to find some to buy. When you do, the dealer is jacking up the price. Nobody wants silver so badly, you can’t buy any! Go figure. And go buy some, while you are at it.

Right now. This minute. Don’t ask why. Don’t ask what. Don’t ask when. Just do it.

Silver Shortage: 19 dealers reported “Sold Out”
http://news.silverseek.com/GoldIsMoney/1205995646.php