- Non Farms Payrolls +146k on expectations of +85k
- Unemployment Rate declined from 7.9% to 7.7%
- Gold and silver smash begins
- *Update: both metals have erased NFP waterfall with vertical moves to the upside
When Timothy Geithner was asked if the administration is prepared to go over the Fiscal Cliff if Republicans do not agree to raise taxes on the wealthy (those earning 250,000 dollars per year or more), he responded “Absolutely.” But when it comes to the US economic problems, does the tax debate or the Fiscal Cliff debate begin to scratch the surface of the crisis? We talk to Former Republican strategist Kevin Phillips, about lessons we can learn from 1775. Phillips is writing about revolution: the American Revolution– in particular 1775, a good year for revolution as he says. He delves into the economic factors that resulted in the Revolutionary War.
Among them are the inability of colonists to manage their own monetary affairs because of British policies constraining the circulation of specie, over-indebtedness as a result of a lack of money and restrictions on trade, and the British control of trade which required certain commodities to pass through middlemen in London. We talk to Kevin Phillips, former White House strategist, about what we can learn from this history as the US faces its own set of economic and political problems today.
In the latest Keiser Report, we peer into the British future and see a future of scum villages and royal baby Snookies as Bank of England executive, Andy Haldane, says the loss of income caused by banks is as bad as World War 2. The Artist Taxi Driver explains what austerity means to the UK. And, while admitting the nation’s wealth has been lost to banker crimes, the cover up continues as Lord Stevenson, formerly of HBOS, claims it was mere incompetence that saw the bank nearly collapse. In the second half, Max Keiser talks to Tim Street of UK Uncut about the protest group’s successful campaigns against Starbucks and other multinationals. They also address how to stop every new tax dollar being sucked straight into the black hole of bank’s fraudulent debt schemes.
The CFTC has filed a civil injunctive enforcement action in US District Court against 12 commodities firms for allegedly selling phantom precious metals to clients. The CFTC complaint states that: The defendants claim to sell physical metals, including gold, silver, platinum, palladium, and copper, to retail customers in retail commodity transactions. Under the defendants’ retail commodity transactions investment contract, customers allegedly make a down payment on certain quantities of physical metals, usually 25 percent of the total purchase price. Defendants allegedly claim to arrange loans for the balance of the purchase price, and advise customers that their physical metals will be stored in a secure depository.
The complaint further alleges that these statements were false, and that the defendants do not purchase any physical metals, arrange loans for their customers to purchase physical metals, or arrange for storage of physical metals for any customers participating in their retail commodity transactions. Instead, all the transactions are just paper transactions.
Sounds remarkably like the COMEX.
The Consumer Fraud Advisory further cautioned consumers that leveraged commodity transactions are unlawful unless executed on a regulated exchange.
Ah, it is remarkably like the COMEX, except the 12 firms charged are not a part of the good ole boys club.
Our friends at Demonocracy have released their 1st video infographic, documenting the US national debt of $16.4 trillion in $100 bills.
If you thought the debt infographics were amazing, the video infographic is stunning, and will immediately wake up any friends or relatives you share it with in regards to the unprecedented and unsustainable national debt.
The problem is not the debt ceiling, the problem is the $16.4 TRILLION DEBT!!
Full infographic below in stunning visuals:
Last year’s NDAA brought us Unconstitutional indefinite detention for all American citizens. This year’s NDAA bill reportedly seeks to institute an online sales tax, which would be devastating and nearly impossible to implement and pay out for small online businesses (such as SDBullion).
This may be the last Christmas of online shopping without paying sales tax.
A proposed online sales tax has been offered as an amendment to the National Defense Authorization Act, much to the ire of opponents.
Tangent Capital’s Jim Rickards was on Bloomberg today discussing Currency Wars and the global fiat race to the bottom, and informed the financial MSM host of the fact that the Fed is attempting to IMPORT inflation.
Full interview below:
After being treated to the standard COMEX open waterfalls that saw gold smashed as low as $1684 and silver under $32.50, both metals made a vertical move to the upside around 10am EST.
Gold cleared $1700 trading as high as $1704, and silver is back above $33, reaching $33.38.
The impetus for the move appears to be a massive physical gold buy order in the range of 10 metric tons.
We can also confirm that SDBullion was in fact approached Wednesday by a UK hedge fund manger seeking the acquisition of 20 metric tons of gold in good delivery bar form, which had been physically tested for purity above .9995 within the past 5 years.
The fact that a London fund manager has resorted to contacting US retail bullion dealers in attempt to fill a 20 ton gold order speaks volumes to the availability of physical gold (or lack thereof) for delivery in London and the extreme tightness in the physical market.
The US Mint has updated its December sales totals, and not surprisingly, both gold and silver sales are extremely strong, with 728,000 silver eagles, and 19,500 oz of gold eagles sold through the first 3 business days of December!
This compares to 2.009 million silver eagles, and 65,500 gold eagles sold for the entire month of December 2011!
It’s no wonder the paper futures price continues to correct with no one buying any physical metal! (sarc off)
Trim Tabs’ Charles Biderman states that the US economy will be immediately negatively impacted by higher taxes- with or without a fiscal cliff deal. He states the best deal we can expect will raise taxes by around $200 billion, which would result in an annualized 3% drop in after tax take-home pay! If no deal is reached, taxes will increase by $500 billion, which would result in a whopping and incredible 7.5% drop in after tax take-home pay for Americans! Biderman states this massive cut in American’s take-home pay will DEVASTATE both the US and global stock markets!
Biderman’s full update below:
Looks like the cartel is ready to shift from the short side to the long side in the metals ahead of the incoming tsunami that is the 3rd phase in the massive secular gold and silver bull markets. One last gold and silver smash for the
Does anyone else find it ironic that Goldman calls the end of the gold bull market due to a strengthening US recovery, on the very same day it is rumored that JPM and Goldman are considering massive layoffs due to terrible economic conditions?
Goldman commodity analyst Damien Courvalin is out with a big call: The top in gold is in.
The firm says that the primary driver of gold prices is real interest rates (which have been super-low in the United States, in part thanks to aggressive Fed easing) and that with the economy coming back, this era is coming to an end.
Physical buying of gold bullion has increased on the dip, particularly in Asia, and many are seeing these levels as a floor for prices.
The massive consolidation seen in the last 16 months means that gold and silver are now right on their long term moving averages (See charts showing 100, 200 and 365 daily moving averages)
Gold will revisit its record breaking form of the past four years in 2013 after gains were tempered this year by reduced jewelry demand.
BrotherJohnF’s latest Silver Update:
Welcome to Capital Account. Recently, top bosses and executives at Olympus, the Japanese manufacturer of medical equipment and cameras, pleaded guilty to fraud in one of Japan’s largest corporate scandals. Today we talk to Michael Woodford, the former President and CEO of Olympus, about the scandal and its implications. In mid-October of last year, he was unexpectedly fired by the board. According to the Financial Times, Olympus portrayed him as an outspoken Westerner who “diverted from the rest of the management team.” But Michael Woodford has a different story: he exposed to the press the mismanagement and accounting cover-ups he discovered at Olympus. Woodford became the first CEO of a global multinational company to blow the whistle on his own company. We talk to him about the 1.7 billion dollar fraud he exposed, as well as what he thinks about larger business practice and economic health in Japan.