Hayman Capital’s Kyle Bass gave his thoughts on the end of the debt Super Cycle at the University of Virginia Investing Conference.  Bass makes the case that Japan’s lost 2 decades of can-kicking are about to come to an abrupt end, and that a massive crash is imminent for the nation with a debt to GDP ratio of 350%.

Full MUST WATCH interview below!!

While it was likely a data glitch rather than a trading fat finger flash smash, tonight’s gold futures appeared to have been dropped vertically down the mine-shaft dropping $30 in a single tick, and stuffed under $1700 to $1699

Whether flash smash or data glitch, the move has been subsequently wiped from the charts. 

The Doc had the pleasure of getting together with TF from TFMetalsReport and Andy Hoffman of Miles Franklin tonight for a round table interview on gold and silver with AltInvestors.com.

We discussed the upcoming fiscal cliff, price action in the gold and silver markets, and the massive debt issuance required into perpetuity in order to keep the fiat ponzi system from complete systemic collapse.
The consensus: gold and silver are on the verge of a BIG rally to close out 2012.

Full interview below:

In the latest Keiser Report, Max Keiser and Stacy Herbert present a success story for the three year anniversary of the Keiser Report and that is that the banksters are going the way of Twinkies, Ho Ho’s and Ding Dongs – OUT OF BUSINESS! And just as the junk food and fake bread of the Hostess products caused obesity and diabetes in Americans, so too did the junk bonds and toxic derivatives of the bankers and central bankers cause a flabby, obese and diabetic finance sector in London and New York. In the second half, Max Keiser talks to Ross Ashcroft, writer and director of FOUR HORSEMEN, about why many people didn’t see the financial crisis and what can be done to regain control of the financial system.

While the US is set to hike the estate tax to 55%, and hike the dividend tax rate from 15% to 43.4% courtesy Obamacare, China announced today it will slash its dividend tax rate in half from 10% to 5%!!

Ironically, the new government of the People’s Republic of China has decided the REDUCE their tax on dividends. Years ago it was 20%, then dropped to 10% in 2005. Effective January 1st, though, the dividend tax rate in China will drop to a mere 5%.

The COMEX’s fade into irrelevance appears to be picking up steam. 

The only authorized spot gold exchange in Hong Kong, the CGSE, has announced plans to launch a spot, yuan based silver exchange in 2013.  The contracts will trade in 10kg increments on the silver spot price, with physical delivery allowed (3 contract/30 kg min). 

 

By Stewart Thomson:

Gold recently sold off along with the other so-called “risk on” markets, but it bottomed quickly. The daily chart shows a nice head and shoulders bottom pattern in play.  The daily gold chart looks superb.  The H & S pattern sits near the demand line of a beautiful rising channel.  HSR (horizontal support & resistance) at $1758 is the initial upside target, and then $1800.  A “price pop” to the $1825 price zone could be a game changer for gold stocks.   

Silver looks even better than gold.  Yesterday’s price action was important, because it took silver above the neckline of a head and shoulders bottom.   At this point in time, gold has yet to rise above its neckline, so silver is clearly the leader.  Silver seems eager to race to $35.50, and if gold can rise above $1800, that could catapult silver into the $40 range.

By Ron Paul:

There is nothing treasonous or unpatriotic about wanting a federal government that is more responsive to the people it represents That is what our Revolutionary War was all about and today our own federal government is vastly overstepping its constitutional bounds with no signs of reform.  At what point should the people dissolve the political bands which have connected them with an increasingly tyrannical and oppressive federal government?  If people or states are not free to leave the United States as a last resort, can they really think of themselves as free? 

If a people cannot secede from an oppressive government, they cannot truly be considered free.

*Update: While we are confident that it will not be long until the Treasury takes the penny out of circulation and at least debases the nickel, the author of this story has apparently issued a retraction to the story.
Our thanks to SD reader Mark for alerting us.
-Doc

Is it time to stack copper and nickel as well as silver?
Timothy Geithner reportedly has announced plans by the US Treasury to completely remove both the penny and the nickel from circulation beginning in January 2013, with plans to potentially also remove the dime from circulation in 2014. 
Will the American people finally wake up to the currency debasement of the US dollar when 3 of the 4 main US coins in circulation are no longer minted due to currency devaluation?

Earlier this week Canada announced that they would be phasing out their penny coin.  On the heels of the Canadian announcement, U.S. Treasury Secretary, Tim Giethner stated in a press conference today that the U.S. Mint will remove the penny and nickel coins from circulation, starting early in January 2013.

By SRSrocco:

I used to believe that the gold and silver miners were being manipulated as per the industry’s largest spokesmen… Jim Sinclair. However, I now believe the HEDGE FUND TRADE of being Long the Metal and Short the Miners is not particularly a manipulative trade to keep these gold and silver companies depressed. Rather, I think they may be making a smart trade.

Early this year, Eric Sprott informed SilverDoctors that the cartel MO on silver manipulation had changed from smashing the metals on jobs reports days to whenever the ChairSatan opened his mouth.
That continued today as Bernanke began his speech at the New York Economic Club at 12:15 today titled The Economic Recovery and Economic Policy.  Gold silver were smashed exactly at 12:15.

  • The Bernank’s big headline from the speech:  The fiscal cliff poses a SUBSTANTIAL THREAT to the US economy.  

Translation: QE TO INFINITY is going to get bigger.  And yet the metals are slammed.

Bernanke’s full speech below:

The dollar’s days as the global reserve currency are numbered as the Peterson Institute for International Economics reports in its latest research that China has moved much closer to its long-term goal to make the renminbi the global reserve currency.

Asian economies turn to yuan

A “renminbi bloc” has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China’s successful bid to internationalize its currency, a research report has said.

Citigroup apparently believes that QE to INFINITY…AND BEYOND!!! will cause commodity price to decrease their rate of ascent over the past decade.  You likely won’t be surprised that our professional opinion differs.

Citigroup’s Global Head of Commodities Research, Edward L. Morse, spoke to reporters yesterday and said that gold can continue to rise 8-15% per year based on central bank purchases and despite the end of the commodity “super cycle”.  “It is now clear that the commodity super cycle is over,” Morse was reported as saying by Bloomberg. “No longer will a pure long-only strategy bring the returns expected in 2002 to 2008. Nor will conditions approximating those of the last decade return any time soon.” The “super cycle” of commodity price gains has finished as China’s economy moves to slower growth and supplies increase.
Prices won’t climb “sharply” higher even though quantitative easing from global central banks lift growth and bullion demand rebounds by the end of 2013 wrote analysts at Citigroup Inc.

SRSrocco might have something to say about any expected supply increases in silver.