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

The cartel has successfully stuffed gold back under $1700, and silver under $33 on this morning’s COMEX open.

Silver is down over a dollar to $32.71, and gold was smashed $25 to $1690 It remains increasingly evident just how crucial $1730-$1750 is to gold, as once this level is taken out again to the upside, gold will pop back to its September high of $1800, and through there, will quickly move back to its all-time nominal highs near $1920 placed in August 2011 in the wake of the US downgrade.
With QE4 appearing set for next week, and a further debt downgrade likely in the coming months, gold and silver look poised to explode to the upside.

Gold vs. Berkshire

Warren Buffett’s General Re-New England Asset Management has warned that until central bank monetary policies around the world change “there will be a tendency to higher gold prices.”  General Re-New England Asset Management, a unit of Warren Buffett’s Berkshire Hathaway Inc., said gold may advance as businesses temper spending and central- bank stimulus measures fall short. Gold’s climb last year to more than $1,900 an ounce was fuelled by the expectation that government spending cuts in Europe would reduce demand for goods and services, GR-NEAM Chief Investment Officer John Gilbert wrote in a newsletter posted on the unit’s website today, as reported by Bloomberg. “There is growing evidence that the rising price of gold is a statement about the discouraging prospects for returns on productive investments,” Gilbert said.  “We hope that this analysis is wrong. We fear that it is not.

According to JPMorgan (who would know since as a primary dealer, they flip treasury take-downs to the Fed roughly 30 minutes after issuance for a handsome profit), the Federal Reserve is currently absorbing approximately 90% of new dollar-denominated fixed-income assets. 
Go back and re-read that last sentence.  That’s right, even the financial MSM is now admitting that the Fed is now nearly entirely monetizing the US deficit outright.
This is why QE4 will be announced next Wednesday (which has already been fully priced in thanks to multiple leaks from the Chicago Fed’s Evans as well as Bernanke last week) and why the Fed will ramp up outright purchases to $85 billion a month ($1.02 Trillion/yr) when operation Twist ends- there are simply no remaining buyers of US debt. 

Those who fail to see where this is headed may wish to acquire a copy of When Money Dies to grasp how the situation played out in Weimar Germany.

Apparently an SD reader now has an official alibi for the IRS as 70 gold bars worth $11.5 million were reportedly stolen from a fishing boat in Curacao Friday.
In other news, Jamie Dimon and Jon Corzine were reportedly vacationing together in the south Caribbean this week.

Armed men dressed as police boarded a fishing boat Friday in Curaçao and stole about 70 gold bars worth an estimated $11.5 million (£7.2 million), police in the southern Caribbean island said.

Fabian Calvo buys and sells $100 million worth of real estate and distressed debt a year and says, “Over 20 million houses, on any given night in America, are completely sitting vacant.” According to Calvo, the economy is being helped by “shadow stimulus.” It’s coming from millions of underwater homeowners who have stopped making mortgage payments. Calvo also says banks are not foreclosing “. . . because the inventory has been suppressed on purpose by big players.” Calvo says, “Money that would have been otherwise allocated towards a housing payment is going into consumer spending.” Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Fabian Calvo.

Silver guru David Morgan was on the Ellis Martin report this weekend discussing silver’s near and long-term outlook, and Morgan’s expectation for the culmination of silver’s secular bull market to see an eventual rush to silver by the general public.

Full interview below:

With gold taken down violently last Wednesday and Friday around December 1st notice, a reader has brought our attention to a piece written by legendary gold trader Jim Sinclair on April 17th, 2010, at a time when gold was trading at $1150, and the gold community was convinced the metal would crash back through $1,000. 

Sinclair urged PM investors to stay the course, and not to let any weakness in gold disturb them, because the entire derivatives market looks like the Wild West and the 40 thieves, and that Greece is not the only sovereign that has used OTC derivatives weapons of mass destruction to cheat, by the time this is over, certain states of the USA are going to get caught in the OTC web.
Rather than crash through $1,000 was many feared gold would do, Sinclair stated that a stratospheric takeoff in the price of gold was at hand.

2.5 years and nearly $800 to the upside in gold later, Sinclair’s message and urging of PM investors to stay the course has not altered nor wavered. 

Sinclair’s April 17th, 2010 commentary is below:

By Ron Paul:

Liberty always loses in the 11th hour.

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste. 

By The DocSRSrocco

In the midst of a 2 month price consolidation for both gold and silver, US Mint gold and silver eagle sales exploded in November, coming in a 3,159,500 oz of ASE’s, the 3rd highest monthly total for 2012, and 136,500 oz of AGE’s, by far the highest monthly gold sales for the US Mint for 2012.

While silver eagle sales were strong, the story is in gold eagle sales, which roared back to life in the wake of Obama’s re-election The silver/gold sales ratio narrowed to 23/1, after reaching such extremes as 74/1 as recently as August.
The 136,500 oz gold eagle sales total was nearly triple the October sales total of 59,000, and was up an astonishing nearly 4 fold year over year from Nov 2011, which saw 41,000 oz sold.   November silver eagle sales were nearly as strong, up 2.5 fold year over year from 1,384,000 sold in November 2011.

November sales of U.S. American Eagle gold coins are on track to be the best in 14 years as uncertainty surrounding the U.S. fiscal cliff and the election of President Obama led to safe haven buying.  Buyers timing the market also increased coin sales by buying during sharp price movements that occurred in the beginning and end of November, coin dealers noted.
Bullion dealers in the U.S. report an influx of high net worth individuals that are buying gold coins in volume and taking physical possession of their bullion.  Month to date 131,000 ounces of American Eagles sold, that tripled last year’s November sales and is the strongest November since 1998, data from the U.S. Mint’s website shows.

Our friends at Demonocracy have released another in-depth and visually stunning infographic, this time documenting the Bush era tax cuts and spending cuts set to go into effect Jan 1st, dubbed the Fiscal Cliff.

We fully expect the can to be kicked down the road once again, but in the unlikely event that the USeconomy be allowed to drive over the fiscal cliff, visual details of the carnage are included.

Full info graphic below:

With the popping of the student loan bubble apparently in progress, rumors are circulating that the Federal government will bail out the $1 trillion student loan industry.  When 50% of graduating Americans have $30,000 + in student loan debt and cannot find a job with real unemployment hovering over 20%, the entire sector is subprimeQE to Infinity…AND BEYOND!!!

A possible $1 trillion bailout is coming—and soon.
America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.

Submitted by Morris Hubbartt:

Many market pundits seem to have forgotten how strongly QE can affect the price of gold. This gold chart highlights those effects, with a broad green “chart brush”.   Note the thick green bars.  They highlight the gold price action during QE1 & QE2.  I believe QE3 (and possibly QE4) will produce very similar results.  When the Fed purchases bonds in the open market with printed money, gold tends to rally for a significant period of time.
Quantitative easing is positive for gold, and the effects on silver are even more powerful.  This chart highlights the enormous gains that silver achieved during both QE1 and QE2.   My focus is physical silver, because of concerns about the banking system and growing volatility.
My short term target is $44, which should be acquired at about the time that gold reaches $1850.  To put that in perspective, I expect silver to gain about 29%, while gold gains 7%.  That’s an outperformance ratio of about 4 to 1!

While the sheople in California do not even wish to be informed when their food is contaminated with toxic GMO’s, Mexico has postponed the approval of GMO corn crops, and kicked the decision to the incoming administration of President-elect Enrique Pena Nieto.
Dupont and Monsanto cannot be pleased.

 

A temporary halt on the planting of GMO corn took place on Thursday, Nov. 22 as it was announced that proposed plantings of the highly controversial genetically modified maize were halted in Mexico.
The news means that the successor’s government of president-elect Enrique Pena Nieto will now handle the issue sometime in the spring of 2013 according to Reuters.

In the latest Keiser report, Max Keiser urges “Sami don’t pay,” challenges the anti-anti-fragile Nassim Taleb to a black swan event and coins a new phrase, ‘insectual,’ to describe the increasing insect like behavior of humans online and in markets. Keiser and Stacy Herbert also discuss GATA getting attention in Austria where the central bank is haplessly looking for its alleged gold. In bragging about how much they’ve earned from gold leasing, in fact, the Austrian central bank has inadvertently exposed a big gold lie.

Legendary gold trader Jim Sinclair sent an alert to email subscribers tonight regarding the recent volatility and blatant manipulation in gold.
Sinclair stated that manipulation is no different (worse)today than it was at gold $248, it is simply more visible due to increased volatility. 
Sinclair also states that if the manipulators were winning, gold would not have risen from $248 to $1920, and that those unable to stomach gold’s violent manipulative take-downs will hand over their precious metals directly to the cartel, stating that the manipulators will be on the long side as soon as you all finish throwing in the towel like last week.

Full alert below: