Koos Jansen’s Exhaustive Summary of the Chinese Gold Market

China goldOn April 4, 2014 Alasdair Macleod published an extensive analysis on the Chinese gold market.  I felt obligated to respond to it by sharing my point of view and explain where I disagree with his analysis.  I think his estimates are largely overstated because he double counts certain demand categories.  Macleod states Chinese gold demand in 2013 was 4843 metric tonnes, according to me it was 2197 metric tonnes (my estimate excludes some hidden demand and PBOC purchases on which I have no hard numbers). Setting out our differences was incidentally a good occasion for me to write another in-depth analysis on the Chinese gold market.
I highly respect Macleod, who was probably working in finance when I was in diapers, and I’m very grateful he has been using my findings about SGE withdrawals and the structure of the Chinese gold market. I see very little commentators stepping into this realm, though it’s truly the most important economic event happening in our time.
Having said that, I present my analysis: [Read more...]

Fed to the Sharks, Part 2: Housing and the Death of the Middle Class

The Fed sacrificed the foundation of middle class wealth–stable housing values–to boost bank profits.
Middle class wealth was Fed to the sharks. As the current housing bubble deflates, the investor-buyers who fueled the rally are exiting en masse: what’s the value of an asset when the bid vanishes, i.e. there’s nobody left who’s willing to pay today’s prices?
The Fed has failed to restore middle class wealth with its latest housing bubble, and the costs of the bubble’s collapse will fall not on the Fed but on those who believed the recovery was more than Fed manipulation. 

[Read more...]

Ukraine Hryvnia Collapses Nearly 70% Against Gold In 4 Months

GOLD IN UKRAINE CURRENCY SURGES ANOTHER 7% THIS WEEK – COLLAPSE CONTINUES
This is particularly evident in Ukraine where the economy is nearing collapse and the currency is in free fall. The Hryvnia has been the world’s worst performing currency in 2014.
The charts below gives an indication as to the terrifying magnitude and speed of the recent decline in the value of the currency. This week alone the currency has fallen by 7% against gold or gold per ounce has risen from 15,669 hryvnia per ounce at open on Monday to 16,880 hryvnia per ounce today.

[Read more...]

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Economic Outlook Darkens

empire revoltAfter six years of monetary and tax policies that could have not been better designed to destroy savings and the savings ethic, you’d think governments might have learned some sort of lesson. They are having none of it. Instead Japan is hell-bent on monetary kamikaze, and the ECB is now warming us up for negative interest rates and/or QE.
The problem is far from being understood: if anything the destruction, even confiscation of savings, and the creation of yet more money are set to accelerate in a futile attempt to buy off the inevitable.
Many decades of Keynesian-inspired economic and monetary corruption have left advanced economies with a legacy of debt and low savings. In a nutshell, that is the problem which is driving us into another financial crisis. 
And bond yields are telling us to batten down the hatches for the next crisis: it could be worse than 2008.

[Read more...]

GOFO Rates Plunging- Are We On the Verge of Another Rally?

As expected, London gold forward rates are plunging again during the New York Comex delivery month. In the recent past, this signal of tight physical supplies has correlated with higher prices.
So, are we on the verge of another rally?
[Read more...]

The Doc: Gov’t Planning CYPRUS-Style BAIL-INS!

bail-inOver the past 18 months we’ve seen nearly all of the Western nations move to prepare for bail-ins for the next financial crisis. 
They’re not doing that for no reason- they’re preparing the legislation because they know its coming and they know that bail-outs are no longer an option, so their last ditch effort now is to bail-in and steal money from the depositors to forestall the next banking system collapse.  
The Doc joins Finance & Liberty’s Elijah Johnson for an exclusive interview discussing The Doc’s views on where gold & silver are headed for the second half of 2014 and beyond, the issue of counterfeit precious metals, and the liklihood that Western governments will bail-in depositors and retirement accounts during the next financial crisis.  [Read more...]

Globalist Gangster’s Nevada Land Grab

Harry Reid“Harry Reid, who last week hosted the fifth annual National Clean Energy Summit at the Bellagio Hotel and Casino in Las Vegas, has been “pulling strings behind the scenes” for months on behalf of ENN Mojave Energy, a Nevada subsidiary of the Chinese-owned ENN Group.
After more than two years of secret negotiations beginning in 2009, lawmakers in Clark County, Nevada, unanimously agreed to sell 9,000 acres of public land to ENN for the bargain price of just $4.5 million ($500 per acre) in December 2011.
The Las Vegas Review-Journal questioned the “steep discount” ENN received for the land, which had been previously appraised for between $30 million and $39 million. The arrangement also included a bundle of tax incentives for ENN.”

As you might suspect, Cliven Bundy’s land just so happens to be part of the land earmarked to be given away by “Dirty” Harry Reid to the Chinese.  [Read more...]

Japan & the US: Money Printing Does Not End Depressions!

Source: Banzai7

Source: Banzai7

After the  adjustment of the data for inflation, it is clear that neither the US nor Japanese stock markets are out of their downtrend. They may have stopped falling in real inflation adjusted terms, but as stocks rise, the currency they are denominated in falls at the same time. So the benefit which remains is due to leverage of currency within the stocks, or the corporations themselves, and I suggest, that this leverage will someday unwind.
So if they are still in a downtrend in real terms, is there any chance that QE, Abenomics, or money printing will cease in the short term? I doubt it.
There is a problem. It is now abundantly clear that money printing does not work to end depressions. How the central bank heads will overcome this remains to be seen, but they represent the financial services industry’s interests whether that is known or not, and since deflation is disastrous to fractionally leverage banks survival prospects, and since they are very aware of that, they will attempt to justify continued money printing as long as they can

[Read more...]

Nowhere to Hide: FBI to Launch Facial Recognition Database With Over 50 Million Photos by 2015 !

facial recognition big brotherThere is a disturbing push by the FBI to create an extensive facial recognition database, which will include criminal and non-criminal photos alike.  The FBI reportedly is pushing to have a facial recognition database with up to 52 million photos by 2015.
The program is called Next Generation Identification (NGI), and the aspect of it that should bother you the most is the fact that non-criminal and criminal photos will be combined in the same database. So someone who has no criminal record can suddenly be flagged as a suspect just because an algorithm says so. What’s worst, research shows that the potential for false positive identification increases as the dataset increases.
To see if your state is participating, take a look at this map courtesy of the EFF:

[Read more...]

Why Goldman Sachs Is Highly Motivated To Low-Ball The Price Of Gold

The distinguished analysts from Goldman Sachs have reiterated their 2014 forecast for gold to hit $1,050 by the end of the year.
Goldman has a serious motivation for throwing the paper price of gold under the bus.  You see… Goldman is by far the weakest and most vulnerable bank when it comes to its Assets to Derivatives ratio.  Not only does Goldman rank DEAD LAST compared to the other banks in this ratio, it does so with flying colors. [Read more...]

Top Silver Supply Figures & Forecasts Are Incorrect

SRS8Due to the tens of $trillions of liquidity the Fed and Central Banks threw into the financial markets, the 2009 Global Depression was averted.  This allowed BAU- Business As Usual to continue in the world and mining sector.
If the financial system collapsed along with the broader markets,  global silver production would have fallen considerably in the years following 2009Furthermore, easy money and low-interest rates allowed the world to extract and consume expensive low EROI oil that it really could not afford.
The end of this decade will be nothing like the beginning.
  The Financial Industry will come under the weight of peak oil.  Paper assets will lose value and investors will be forced to move into physical assets to protect their wealth.
Gold and Silver will offer a WAY OUT to the PAPER PONZI SCHEME.  Unfortunately, only a few will see the light before it’s too late.

[Read more...]

Bundy Ranch Shows Necessity of Improving Patriot and or Militia Communications

The US Federal Government has an incredible history of breaking codes and cracking encryption. They have an even greater ability to store an archive all communications, even if they’re seemingly unimportant, so they can analyze them later when suddenly they’re potentially important. They use massive data centers and wire taps supported by every major telecom and technology company in existence today.
Most people already know what I’ve stated thus far. I’m restating it to make a point in the context of modern events.
If you’ve been buried under a rock, I’m referring to the Bundy Ranch standoff. [Read more...]

How the CEO of HFT Firm Virtu Financial is Demanding a Taxpayer Bailout on NHL Investment

breakWhat the financial crisis, subsequent taxpayer bailouts, zero prosecutions of financial industry participants and further consolidation of the economy by oligarchs has taught us more than anything else is that the super rich and politically connected are not allowed to fail.  Apparently, this may also apply to the head of one of the largest firms in what is quickly becoming the most despised “industry” in the nation.
By now, pretty much everyone in America knows about Michael Lewis’ book Flash Boys, which exposes the high frequency trading (HFT) industry for the money-sucking parasite it is.  However, what will really get your blood boiling, particularly if you live in Florida, is how the CEO of one of the biggest players in the HFT space, Virtu Financial, is looking for taxpayers to bail-out his poorly performing investment in the Florida Panther NFL hockey franchise.
This takes having “some nerve” to a whole new level of absurdity.

[Read more...]

Gold Crash Anniversary Day

silver crashGold is holding up reasonably well, considering that Indian buyers are so focused on the election.
Generally speaking, this is the weak season for gold. Also, the April 12 – 15 period is when the gold market crashed in 2013. As we saw Tuesday, Nervous participants tend to be sellers around the anniversary of such events. [Read more...]