Ben Davies: Revolting PIIGS — a Golden Hope?

One of our favorite and most respected gold commentators, Ben Davies has released a sequel to a piece he wrote in 2011: Revolting PIIGS.  Davies discusses financial repression, the PIIGS debt crisis, and how gold relates to these issues.

From Ben Davies:

Gold has had a risk weighting of 50%, meaning an institution had to adjust its capital by 50% and then based on capital adequacy ratios mentioned below make appropriate reserve provisions. So if you had £4bn gold the institution has to provide capital as a proportion of only £2bn.  Recent developments in the US suggest that gold may actually be offered the luxury of this very same subsidy given to sovereign debt. I originally didn’t mention it because I genuinely believed it was an unlikely event that gold could be considered a risk free asset and likewise eligible as collateral, as it flies in the face of financial repression tactics; sorry surely I mean macro-prudential regulation.

Financial repression in this case refers to the coercion of the private sector to take on more sovereign debt. For example in 2009 the FSA enforced higher capital charges and take up of over £90bn of UK debt onto bank and UK based foreign bank branches.

This recent gold risk weighing development has garnered very little attention, yet it could affect a significant change in understanding and application of gold within our current money system. [Read more...]

Egan Jones Downgrades Germany to A+

Egan Jones has just downgraded GERMANY from AA- to A+!

  • Egan Jones believes Germany likely to be outvoted by other ECB members on Euro-bonds

  • Watch for EFSF & ESM to morph into banks

  • ‘We are cutting to A+’

[Read more...]

Gurdgiev On Significance of Gold Collateral to Germany’s European Redemption Fund

In the latest Keiser Report, Max talks to economist, Constantin Gurdgiev, about the significance of the gold collateral to Germany’s idea of a European Redemption Fund.

[Read more...]

Latest Silver Raid Takes Silver Back to $26 Handle

Live 24 hours silver chart [ Kitco Inc. ]Another day, another raid.  The latest cartel take-down has erased all of yesterday’s pop, and driven silver back below $27 again.

Nothing unexpected with options expiration this week.

On the positive side, massive buying continues to surface on any dip near $26.50.

Over the past 24 hours, the Greek Finance Minister has resigned, Cyprus requested a bailout, Moody’s downgraded 28 Spanish banks, rumors today indicate Moody’s may downgrade Spain itself to Junk status imminently…and gold and silver are pounded lower.

COUNTER-INTUITIVE!   STACK THE ARTIFICIAL SMACK!!!!
[Read more...]

Silver Moving into Mania Phase

SD Contributor Ich1baN discusses psychological impetuses affecting silver’s move in an upward and parabolic trend.

Silver: Moving into Mania Phase!! [Read more...]

We Are Living in a ‘Modern-Day Depression’: David Rosenberg

In this excellent interview, David Rosenberg states that most economists have misdiagnosed the current economic crisis as a double dip recession, stating “We are living in a modern-day depression”.

Rosenberg rightly points out that a record 46 million Americans are living on Food Stamps, and these electronic handouts are the only reason we don’t have bread lines like in the 1930s.

Full interview below:
[Read more...]

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Turkey, Russia, Ukraine and Kazakhstan Further Diversify Into Gold

Turkey raised its reported gold holdings by another 2% in the month of May. Turkey’s gold holding rose by 5.7 tonnes in May to total 245 tonnes, International Monetary Fund data showed, making it the latest in a string of countries to increase gold bullion reserves this year. Turkey has allowed banks to hold more of their reserves in gold to provide extra liquidity. The central bank this month raised the proportion of reserve requirements that can be held in foreign exchange to 50 percent from 45 percent, while the limit for gold was increased to 25 percent from 20 percent. The changes will add as much as $2.2 billion to gold reserves. Gold accounts for about 9.1 percent of Russia’s total reserves, 5.1 percent of Ukraine’s and 15 percent of Kazakhstan’s, according to the World Gold Council. That compares with more than 70 percent for the U.S. and Germany, the biggest bullion holders, according to Bloomberg figures. Kazakhstan plans to raise the amount of gold it holds as part of its reserves to 20 percent, Bisengaly Tadzhiyakov, deputy chairman of the country’s central bank, said earlier this month. [Read more...]

Ron Paul: Hands Off Syria! Let’s Not Fall for the Same Lies Again!

With war rhetoric against Syria ramping by the hour in the wake of Monday’s report that Libya had fired upon a Turkish search and rescue plane over Syrian airspace, Ron Paul warns Americans not to fall for the same lies again by the warmongers!

Or in the words of Dubya:  Fool me once, shame on- shame on you.  Fool me…….you can’t get fooled again.

[Read more...]

Silver Update: Losing Position

BrotherJohnF is back with another Silver Update:
Losing Position [Read more...]

Cyprus lands in Europe’s “Bailout Crosshairs,” as the BIS says “Hold the Presses!”

Spain has formally requested its bank bailout. Cyprus has now requested EU bailout aid citing spillover from Greece. Greece’s new finance minister resigns and Merkel puts the breaks on Eurobonds — once again. The Bank of International Settlements — the central bank of central banks — says that their money printing buddies may need to think about giving the presses a rest, lest they run out of ink! Sowhat exactly can one more EU summit solve? We’ll try and answer that question with our guest Edward Harrison, founder of Creditwritedowns! [Read more...]

Unconventional Finance Interviews The Doc: Physical Silver to Rocket!

UnconventionalFinance’s Elijah Johnson spoke with The Doc Sunday regarding gold, silver, the derivatives crisis, and the Euro contagion.

Elijah’s full interview with The Doc below: [Read more...]

Moody’s Downgrades 28 Spanish Banks

Moody’s announced downgrades for 28 Spanish Banks after the close, with the downgrades ranging from 1-4 notches.

  • Ratings were cut by one notch for three banks, by two notches for 11 banks, by three notches for ten banks and by four notches for six banks.

  • Short-term ratings for 19 banks were also between one and two notches.

Full release below: [Read more...]

COMEX Silver Inventory Update 6/25/12

We have 5 silver inventory movements to report from Friday’s trading, with nearly all of the action again occurring in the Brink’s vaults.

COMEX WAREHOUSE SILVER INVENTORY UPDATE 6/25/12 [Read more...]

Jim Sinclair: Deflation Doesn’t Have a Snowball’s Chance in Hell of Occurring!

Jim Sinclair has released an excellent deflation rebuttal today to email subscribers.
Sinclair states that classical deflation does not have a snowball’s chance in hell of occurring now for any length of time, that the problems from 2008 are not only still here, but have grown much greater by being covered up over the past 4 years.
Sinclair reiterates that the Euro and the Dollar (in that order) will be bailed out, and that QE will Continue to Infinity!

From Jim Sinclair:

Never before in the entire period of 1968 to 1980, or 2001 to present, have I received so many copies of classical deflationist scenarios in one day. It would seem as if the God of Deflation overflew the gold guys and dropped their leaflets.

Classical deflation does not have a snowball’s chance in hell of occurring now for any length of time. To assume that you have to hold the belief that Bernanke is a mole in the present administration, placed their covertly to bury the present administration so deep that there will never be a democrat in office after 2013 anywhere. [Read more...]