Jim Willie is the editor of the “Hat Trick Letter.” He has a PhD in statistics and crunches the numbers on things like gold, currencies and bonds. Jim Willie says, “Gold is the anti-bubble. . . . It is the response to the biggest bubble in the history of the modern world, and that is Treasury bonds.” It was recently reported that the Federal Reserve is buying 90% of all Treasuries. To that, Willie says, “The supply of gold is lacking and demand for Treasuries is evaporating. It’s that simple.” Willie thinks the global economy will not get better because, “. . . they have no solutions, and they are praying they can keep this going.” Like it or not, gold is going to make its way back into the monetary system. Jim Willie contends, “The gold standard will return because gold will be the last asset left standing. Everything in paper is going to go to Hell.” The transition will be very painful. Willie says, “We have a climax bust coming for bonds, currencies and the banking system because they are all interrelated.” Join Greg Hunter as he goes One-on-One with Jim Willie.

UBS has reportedly agreed to pay $450 million to settle a probe over LIBOR manipulation.  Please recall that Barclays was reprimanded by officials at the BOE for NOT manipulating their LIBOR rates as effectively as their counterparts at Goldman Sachs and JP Morgan Chase, and yet to no surprise, not a single one of the most egregious manipulators have been charged by authorities.
Supposedly Chilton, Gensler, Shapiro, and the rest of the CFTC are still investigating… at least until the story is completely forgotten by the financial MSM.

ZURICH–UBS AG (UBS) is close to a settlement with U.S. and U.K. authorities and is expected pay more than $450 million over claims that some of its employees reported false Libor rates to boost the bank’s profit, the New York Times reported Sunday, citing anonymous officials briefed on the matter.

GoldMoney has released an interview with Chairman James Turk about his study of the above-ground global gold stock, gold’s role as money, and the coming fiat currency collapse. They discuss the discrepancies between official gold stock figures and the study’s carefully calculated figures, going all the way back to Roman times and using the year 1492 as a pivotal calculation point — which was when the Spanish Empire began its imports of gold deposits discovered in the Americas. In contrast to the widely referenced number of 171,000 tonnes of above-ground gold, James’s study suggests that it is actually closer to 155,000 and therefore overstated by about 10%.

Full interview below:

In his latest market update, Trim Tabs’ Charles Biderman states that If the U.S. government were subject to the same laws, such as Sarbanes Oxley, as is a public company, Barack Obama and Timothy Geithner would be guilty of financial fraud. How can I make such an outrageous claim? Simple, it is the truth.

Biderman’s full rant below:

By SRSrocco:

In just eight months, the U.S. LME copper inventories are down nearly 60%.

The top 10 Primary Silver Miners (does not include Fresnillo & Hochschild) had total revenues in Q3 2011 of $954 million with a combined net income of $241 million.  As the table shows, this was 25% margin compared to total revenues.

However, in this past quarter we can see the damage to the balance sheets as the miners received about $8.00 less an ounce for silver in Q3 2012 than the same quarter last year.  Total income declined to $895 million even though the overall production was a million oz more.  Furthermore, we can see that net incomes have plummeted 78% to only $53 million…. a mere 6% of total revenues.

From my simple calculations, the break-even price to Net Income was about $28.00 for the combined primary silver miners.

In one of the main claims in the ongoing class action suit against JP Morgan Chase alleging price manipulation of silver, the suit alleges that JPM made over 25 massive FAKE TRADES using Saxo Bank during sparse Globex evening hours prior to major silver raids for the express purpose of TELEGRAPHING AN IMPENDING SILVER SMASH TO THEIR BUDDIES!

As it is allegedly JPMorgan’s SOP to telegraph major impending raids in the metals to other bullion banks using FAKE TRADES during thin trading, could this have been the real reason for the flash crash glitch in the gold and silver charts last week DURING SPARSE GLOBEX HOURS which saw gold flash crash from $1750 to $1715, and silver from $34.20 to $32.80?
Gold has already traded to and below the target of the chart glitch.  Will silver continue to be smashed to the glitch target of $3180??

The Bank of Korea increased gold reserves 20% last month to diversify investments, boosting holdings for the fourth time since June 2011 and underscoring increased demand by central banks according to Bloomberg.  The bank added 14 metric tons in November, bringing the total to 84.4 tons, the bank said in a statement today. By value, holdings increased about $780 million to $3.76 billion, equivalent to 1.2% of total reserves, the bank said. “Gold is a physical, safe asset,” the Bank of Korea said in the statement. The precious metal “is a way of diversification, which helps reduce investment risk in terms of foreign-exchange reserves management,” it said. The Bank of Korea bought 16 tons in July, 15 tons in November 2011 a further 25 tons over a one-month period from June to July last year.

Submitted by Stewart Thomson:

 The round number support of $1700 in gold failed Tuesday.  Technical traders often place a lot of stop-losses and short sale orders just below such uptrend lines, and that can bring substantial volatility to the market.  While stronger hands in the gold community are buyers of such breakdowns, it is often not enough to overwhelm the technical sellers, many of whom are leveraged.  Also, while the larger commercial traders tend to be buyers of trend line breaks, they often place less bids than the amount of gold offered by traders who are panicking or facing margin calls.
Their reluctance to bid for all the gold that is offered can produce even lower prices.  Many central banks have active gold buy programs that provide support to the market, and it often comes just when it seems that gold will never stop decliningI believe that gold is coiling here, and it will soon surge through $1800.

Bloomberg has released an excellent interview with one of our favorite market commentators (and perhaps the harshest and most vocal critic of the Fed outside of Ron Paul), Jim Grant.

Grant eloquently informed Bloomberg that there are no markets anymore, only interventions:
There is a systematic manipulation of values carried out by our central banks world over.  They sit on money market interest rates, they muscle around the yield curve, and they levitate asset prices on the theory that higher stock and corporate bond prices will make us happier and more inclined to spend.

When Bloomberg’s blonde responded by asking, What’s the harm? Grant responded:
We haven’t got enough time to go through every item of harm.

Grant does go on to inform the Bloomberg hosts what he expects as a result of market manipulation/intervention to infinity by the Western Central Banks:  I am expectant that these massive and unprecedented central bank musclings and interventions are going to backfire in the shape of inflation and higher interest rates. 

Grant’s Full MUST WATCH interview below:

When we first objected to the SS TSA’s unconstitutional searches at airports when they were instituted several years ago, many informed us that if we did not like gestapo’s actions, we could simply choose not to fly.  Our response?:  What will you do when the TSA installs checkpoints and searches in every bus, subway, train station, as well as checkpoints along each state border and on highways?  Simply choose to remain confined in your suburban prison cell 24/7/365?

Those who believed the TSA’s actions were about security of airlines were gravely mistaken, and our predictions appear to be fulfilling themselves, as the TSA is reportedly seeking permission from the Office of Management and Budget to begin conducting “security assessments” on highways as well as at 140 other public transportation hubs, including bus depots and train stations.

In the latest Keiser Report, Max Keiser talks to our friend Ned Naylor-Leyland of Cheviot Asset Management about the fishy smoke signals blowing at the LBMA regarding silver contracts and about the debate between inflation, deflation, hyperinflation actually being a debate about the final denouement of paper currencies. Ned also reveals that the LBMA is about ten times larger than the Comex and that BBC’s flagship program, Panorama, had interviewed him and Andrew Maguire about silver manipulation and yet have never aired the episode.

Full interview below:

Submitted by SD Contributor Marshall Swing:

Gold & Silver COT Report 11/30/12

Commercials declined 894 longs on the week and increased 712 shorts to end the week with 47.05% of all open interest, a small decrease of -0.18% in their share since last week, and now stand as a group at 283,960,000 ounces net short in silver, which is an increase of just over 8,000,000 net short ounces from the previous week