Ron-Paul-with-Silver-Circle-Round[1]The ChairSatan’s full prepared testimony to Congress has just been released, and it appears that The Fed has just lost whatever shreds of credibility (among mainstream media) it had left.
Bernanke continues attempting to talk out both sides of his a**, stating:

  • *BERNANKE SAYS PACE OF BOND PURCHASES NOT `ON A PRESET COURSE’ (translation: we’re making this up as we go!)
  • *BERNANKE SAYS FED MAY TAPER QE IN 2013, HALT IT AROUND MID-2014 (translation: gold and silver, please go down)
  • *BERNANKE SAYS FOMC BELIEVES RISKS TO ECONOMY EASED SINCE FALL (translation: annual green shoots MOPE)
  • *BERNANKE SEES HIGHLY ACCOMMODATIVE POLICY IN FORESEEABLE FUTURE (translation: stocks and bonds please go up, QE4EVA)
    Bernanke’s full prepared remarks for his last Congress appearance on the Fed’s monetary policy are below:

Cyprus continues to see capital and currency controls today – meaning that a euro in Cyprus is no longer the same as a euro in France or Germany.
The International Monetary Fund and the European Commission stipulated that Cyprus should sell its gold reserves at the time of the bailout.
Yesterday the Cypriot Finance Minister Harris Georgiades said that a sale of its gold reserves was not the only option under consideration to pay down its debt and that other alternatives were being considered.
“It will be considered, when the time comes, with options, or rather, all other options,” Georgiades told reporters.  Asked if this meant there was a possibility of Cyprus not selling its gold, he answered: “When that time comes other options will be examined.”

It didn’t take long for the hoards of zombie bank analysts to come out with their bearish precious metal forecasts now that the price of gold and silver are down 25% and 40% respectively since the beginning of the year.  Coming straight out of the bankers play-book, it looks like we should get used to seeing more of this sort of high quality analysis in the future.
While its true that not all bankers or analysts see gold and silver as a threat, the overwhelming majority do.
The whole global banking system is based on a fiat monetary system that is still becoming weaker each passing day.  Gold and silver are a real threat to the banking system because they offer a competing monetary currency that has 2,000 years worth of solid experience.

Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

In the latest Keiser Report, Max Keiser and Stacy Herbert discuss the market creatures with no apparent instinct for survival as they walk toward the frothy market despite all the signs of a debt tsunami about to hit.
They also discuss when Goldman Shrugged after Thomson Reuters data was no longer available to high speed frontrunners. In the second half, Max talks to Jan Skoyles of The Real Asset Company about gold demand in China, the Shanghai Gold Exchange and smuggling Snowden in Venezuela’s gold delivery.

A fundamental shift is taking place in the U.S. economy.  In fact, this transition is rapidly picking up momentum and is in danger of becoming an avalanche.  The percentage of full-time jobs in our economy is steadily declining and the percentage of part-time jobs is steadily increasing.  This is not a recent phenomenon, but now there are several factors which are accelerating this trend.
One of them is Obamacare. 

In a recent article I introduced the concept of allowing for the increased quantity of above-ground gold and the expansion of the quantity of dollar currency over time when trying to value gold. The purpose of this article is to explain why such an obvious adjustment is rarely contemplated and why it should be applied.
The reason no one adjusts the dollar quantity is we want to think of the dollar as having a constant value when we buy assets or goods. We describe prices of goods as rising or falling, and never the currency falling or rising. When we construct an index of house prices or stocks we do not take into account the debasement of the currency.

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.”