stock market collapseEmployers are cutting full-time employees back to part-time to avoid the requirement of providing health insurance under Obama Care.
Trader Karl Denninger says, “As the Obama Administration runs against the economic reality of what they passed, they are now trying to find ways to dodge it. . . . The Obama Administration’s reaction to this has been to unilaterally, and by the way illegally, put off the imposition of mandate.” This is not going to save the teetering economy as Denninger contends, “Bernanke has lost control of the bond market and, in general, his policy. . . . The reality is the Fed is not in charge, and when that confidence level breaks, you are going to see all hell break loose.” Denninger goes on to predict, “We are setting up for a collapse that is going to be worse than 1929, and it’s going to come sometime within the next two years. It could come as soon as the next couple of months, but it is going to happen, and there’s nothing that is going to stop it.” Join Greg Hunter as he goes One-on-One with Karl Denninger.

US President Barack Obama (AFP Photo/Pool/Luke Sharrett)

US President Barack Obama quietly signed his name to an Executive Order on Friday, allowing the White House to control all private communications in the country in the name of national security.
President Obama released his latest Executive Order on Friday, July 6, a 2,205-word statement offered as the “Assignment of National Security and Emergency Preparedness Communications Functions.” And although the president chose not to commemorate the signing with much fanfare, the powers he provides to himself and the federal government under the latest order are among the most far-reaching yet of any of his executive decisions.

The cost of borrowing gold remains near its highest level since January 2009, reflecting a lack of supply from bullion banks and resilient demand for physical gold products, especially in Asia.  Trading volumes for gold and silver on the Shanghai Futures Exchange (ShFE) rose to record volumes on Friday, with premiums in Asian gold products remaining at sharply higher levels than in North America and Europe.
Gold premiums in China remain high at nearly $30 per ounce– an indication of strong demand in the People’s Republic of China and premiums in India remain robust despite the recent fall in demand.
Chinese gold demand remains insatiable with record deliveries being seen on the Shanghai Gold Exchange (SGE).

The global crisis is a financial crisis driven primarily by global trade and capital imbalances.  This is the macro theme we have pursued these past 7 years. We believe the global crisis is in full swing again and asset prices are in danger of falling globally.   Money is less effective at catching the falling knife.  Emerging market countries are exhibiting the signs of crisis-like price action associated with deteriorating balance of payment balances, even though many have built up significant foreign exchange reserves.   Investors and policymakers do not believe this is the beginning of a major EM contagion crisis. They are lulling themselves into a false sense of security. They see the EM market tremors, and do not fear are-run of the EM crises of old.  They are right. This is not (just) going to be an EM crisis. Recent events portend a far more serious crisis is at hand; the unraveling of our global monetary system.

Ben Davies of Hinde Capital’s full MUST READ letter on the unraveling of the global monetary system is below:

ned-naylor-leyland.09.11.11GoldMoney’s Alasdair Macleod has released an excellent interview with our friend Ned-Naylor Leyland.
Ned discusses his recent paper (Gold- What Has & Hasn’t Happened) and his view that gold has actually been in backwardation a lot longer than this just this last week. Ned sees this backwardation as a very telling point when one considers the large above-ground stock of gold.
Ned brings up a very interesting point regarding velocity within the LBMA physical gold market versus the paper money markets. Physical gold, which should sit relatively still, is moving while currency velocity is low.
They then discuss daily trading volumes and the fractional nature of the precious metals markets before analysing the movement of physical metal, from West to East.
NNL’s full must listen interview with Alasdair Macleod is below:

Jim SinclairThe U.S. Economy is still heading for a train-wreck, but you wouldn’t know it if you pay attention to the information and data coming out of the Main Stream Media.  I am completely surprised at the apathy and nonchalant behavior of the investing public as the economic conditions continue to deteriorate.
At some point in time, these conditions will disintegrate more rapidly into an exponential free-fall.  Once the U.S.A. Titanic finally sinks this time, there will be no coming backThis will be the time we will experience the great wealth transformation from paper to physical… especially gold and silver.

Jamie DimonNaked shorting of silver is not really the issue, as silver analyst, Ted Butler has been pointing out for decades, it is more about the extreme concentration of short silver positions and less about the big players being caught red-handed sending blatant signals of market price fixing collusion.

“If the dollar cycle has topped on week three like I think it has, then gold should deliver an extremely powerful rally over the next 4-5 months. If the dollar tests the 2011 lows during this yearly cycle bottom I think it’s completely reasonable to expect gold to test the all-time highs at 1900.  A 700 point move over the next four or five months would certainly reset sentiment and set the stage for gold to move into the bubble phase of the bull market as the currency crisis in the dollar begins to develop next year.
I continue to believe that this entire correction is going to turn out to be the corrective move that separates the second phase of the bull market from the bubble phase.”

10Have you ever seen a disaster movie that is so bad that it is actually good? Unfortunately, we are witnessing something just as ridiculous in the real world right now.  In the United States, the mainstream media is breathlessly proclaiming that the U.S. economy is in great shape because job growth is “accelerating” (even though we actually lost 240,000 full-time jobs last month) and because the U.S. stock market set new all-time highs this week.  The mainstream media seems to be absolutely oblivious to all of the financial storm clouds that are gathering on the horizon.  The conditions for a “perfect storm” are rapidly developing, and by the time this is all over we may be wishing that flying sharks were all that we had to deal with.

Cash-strapped consumers are losing almost 80% of the value of their gold jewellery when they sell it to cash for gold companies.
In a major survey of cash for gold firms, it has been found that consumers are losing approximately 15% of the value of their gold when they sell their gold to get euros.
Desperate citizens are getting very poor prices when they are forced to sell their gold jewellery and similar figures and worse were seen in the UK, Portugal, Italy, Spain, Cyprus and Greece.
When the mark-up of jewellery retailers is also factored  in – which can range between 250-400% – this figure rises to approximately 80%, meaning that a ring originally bought for €1,000 will return only approximately €212.5 for a seller.

silver dollarReal unemployment is increasing in the U.S.A., and has now risen to a record 23.4%!
This is significant not only because of the devastating impact on the poor souls who cannot find work, (and reflects indeed the increasing impoverishment of the USA’s middle class) but also because it means that the U.S. Consumer – 70% of the U.S. Economy – is not going to be able to generate or sustain an economic recovery.
The U.S. is already Threshold Hyperinflationary with Real CPI at 9% (generated by ongoing Massive Central Banks’ QE) and Real GDP a Negative -1.98%.  These increasing CPI numbers signal an Opportunity for those who Invest with an eye to the coming Hyperinflation and a Threat to those who do not.

imagesBoth gold and silver have experienced parabolic price declines. The good news for embattled bulls is that this type of chart action usually happens at the end of a decline. Even if there is a big rally now, it will take many months for sold-out bulls to regain their confidence, and most of them could end up missing the price rise. 
An upside breakout from the inverse parabola may have already occurred.

Zeal071213AGold’s biggest psychological overhang this year has been the fate of the Fed’s third quantitative-easing campaign. Gold futures traders hang on every word of Fed officials, extrapolating them into a timeline for ending QE3. This consuming obsession fueled unprecedented selling that spawned a stunning gold anomaly. But as QE3’s nature becomes more apparent, gold is due for a massive mean reversion higher.

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Chris Duane joins The Doc & Eric Dubin as a special guest host for this week’s SD Weekly Metals & Markets.   Chris, Eric, & The Doc discuss:

  • India’s sudden massive taste for silver- which is blowing away US demand for silver eagles and could be a game changer in the physical silver market
  • Historic implications of the GOFO rate remaining negative for 5 consecutive days
  • Chris Duane announces the re-launch of the SBSS series with The Warbird

Download the podcast, or click the play button below, this is a Metals & Markets you Wont Want To Miss!