US Debt Officially Passes $16 TRILLION

With today’s $35 billion 2 year auction, the official US debt has officially passed the $16 TRILLION mark, a mere 286 days after the $15 Trillion mark was officially breached.  [Read more...]

Bernanke Talks Friday from Jackson Hole | Does JP Morgan Have a Silver Derivative Problem?

In today’s Animated Metals Update we speculate about what the Federal Reserve Chairman (Ben Bernanke) may reveal during his speech from Jackson Hole. We discuss the rumor that JP Morgan may have a Derivative bet on Silver that is about to go south and we wonder what may be taking place on JP Morgan’s Silver trading floor. [Read more...]

Silver Inventory Update: Brink’s, HSBC Report Massive Silver Deposits Monday

Massive inventory volatility continued in COMEX silver warehouses Monday, as Brink’s reported deposits totaling 900,000 ounces including 296,000 ounces into registered vaults, HSBC reported deposits of 644,000 ounces,  and Delaware reported a small withdrawal.

COMEX WAREHOUSE SILVER INVENTORY UPDATE 8/28/12 [Read more...]

U.S. States’ Debt Tops $4 Trillion-Report

While the financial MSM continues to focus solely on the Euro-zone debt crisis, the US’ 50 state government’s debt dwarfs the PIIGS debt at $4.19 TRILLION.

Aug 28 (Reuters) – America’s 50 state governments owe $4.19 trillion, including outstanding bonds, unfunded pension commitments and budget gaps, according to a new report. [Read more...]

Eric Sprott: ‘Fear the Financial System’

The Gold Report has released an excellent interview with our friend Eric Sprott of Sprott Asset Management.
Sprott states it is time to “Fear the financial system.” and that it’s time for people to take matters into their own hands by purchasing physical gold and silver.
Sprott discusses the massive 2,500 ton demand change for gold over the past 12 years, in a 4,000 ton/year gold market, and states ‘you have to ask yourself where all that gold is coming from!
Sprott believes (likely correctly) that I can only conclude that acting in concert, the G6 central banks are supplying that gold from their reserves by leasing the central bank gold into the gold market.

Sprott also states that if they were not manipulated, the price of gold today would be over $3,200, and silver would be north of $200/oz.

[Read more...]

ECB & SPAIN: Stand by for the Big-Guns Barrage as Massive Bailout Imminent

It may not come at Jackson Hole on Friday, but massive and unprecedented QE is coming, of that you can be assured.
European sources are stating that the fact that Draghi cancelled his appearance at J- Hole on Friday is an indication that the Euro crisis with Spain is nearing a creshendo, and the ECB will be forced to announce a massive bailout of Spain before the week is out.
QE will continue to INFINITY….AND BEYOND!!! in Europe, the UK, and the US.  The only alternative is complete debt collapse.
A Swiss credit source states: “We’re talking very, very big here: this is going to dwarf anything done for Greece, and it is going to make the bank 200% responsible for stopping the collapse

The regions of Spain don’t come much more affluent than Catalonia. So the depth of Spain’s problem was made brutally clear this morning when the Catalans officially requested the full works – total bailout – hoping to apply for a cool €5.23 billion from Madrid. [Read more...]

CME to Launch Derivatives Exchange in London

CME Clearing’s Head of Clearing &
Business Development,
Tina Hasenpusch

Somehow we missed this last week, but the CME Group has quietly announced their intentions to launch a London-based derivatives exchange in mid-2013.

This is somewhat surprising considering CME Clearing Europe vacated it’s derivatives registration in March, just a week prior to the Greek CDS auction on March 19th.

Apparently screwing over Greek debt CDS holders worked so well for the ISDA and the CME that the CME group has decided to expand their London derivatives business. [Read more...]

Conservative Louise Yamada Predicts $5,200 Gold by 2018

Louise Yamada, an analyst known by PM investors for her conservative calls for gold and silver stated on CNBC’s Power Lunch that she sees gold currently approaching her next target of $2,000 an ounce, and shockingly called for $5,200 gold by 2018.

If a well balanced, mainstream respected, and conservative analyst such as Yamada is now publicly calling for $5,200 gold by 2018 (a level be believe will be far surpassed by 2018), the dollar is in SERIOUS TROUBLE going forward.

Full interview below: [Read more...]

Telling the TRUTH is a Revolutionary Act, But Will it Soon Be ILLEGAL?

Unconventional Finance’s Elijah Johnson sat down with The Doc Sunday night and we discussed the markets, SD Bullion’s sales as the metals have roared back to life, silver and gold’s breakout, growing public awareness of gold and silver manipulation by the cartel, and the government’s all-out war on knowledge and the truth.

The Doc’s full interview with Unconventional Finance is below: [Read more...]

Gold Silver Ratio Breaks Below 54 to 1- Big Silver Move Just Beginning

For the first time in nearly 6 months the gold/ silver ratio has broken below 54 to 1, currently trading at 53.79 to 1.

As discussed previously, we expect the gold/silver ratio to narrow substantially during this bull run, likely as much as 20 to 1. [Read more...]

Russia , Turkey, Ukraine Buy Gold But Bullion Tiny Part Of FX Reserves

Russia, Turkey, Ukraine and the Kyrgyz Republic have again expanded their gold reserves.
July saw Russia’s biggest increase since since October and Kazakhstan increased their bullion reserves for a 12th consecutive month.
Russia’s assets rose about 18.6 metric tons to 936.6 tons last month and Kazakhstan’s climbed 1.4 tons to 103 tons, data on the International Monetary Fund’s website showed according to Bloomberg.
Both countries’ holdings are at the highest level since at least 1993, the data show. [Read more...]

GOLD MINERS WILL NEED $3,000 IN FIVE YEARS TO BE PROFITABLE

The nitwits on MSM and CNBC who believe that gold is in a bubble, fail to understand that a large percentage of its recent price move higher has been due to the increased costs in the mining industry — and not because of rampant speculation.

This reminds me of a famous quote from the movie Aliens… “DID IQ’S JUST DROP SHARPLY WHEN I WAS AWAY?”

If we look at the information and data provided in the body of this post, you will realize that the price of gold will have to head much higher just to cover increased mining costs.  Furthermore, you don’t have to believe me… the title of this post came from an article quoting the World Gold Council’s chief executive, Aram Shishmanian. [Read more...]

Ultra Easy Monetary Policy & the Law of Unintended Consequences- A Mutiny At The Fed

It seems that The Bernank has a dissenter in the ranks in the form of the Dallas Fed’s William White.

In a economic paper just released White states:  ‘In this paper, an attempt is made to evaluate the desirability of ultra easy monetary policy by weighing up the balance of the desirable short run effects and the undesirable longer run effects – the unintended consequences. The conclusion is that there are limits to what central banks can do. One reason for believing this is that monetary stimulus, operating through traditional (“flow”) channels, might now be less effective in stimulating aggregate demand than previously. Further, cumulative (“stock”) effects provide negative feedback mechanisms that over time also weaken both supply and demand. It is also the case that ultra easy monetary policies can eventually threaten the health of financial institutions and the functioning of financial markets, threaten the “independence” of central banks, and can encourage imprudent behavior on the part of governments. None of these unintended consequences is desirable. Since monetary policy is not “a free lunch”, governments must therefore use much more vigorously the policy levers they still control to support strong,sustainable and balanced growth at the global level.’

What did you say Mr. White!?! Monetary policy is NOT a free lunch??  But we were under the impression that your boss believes any economic or fiscal problem can be solved via a proverbial helicopter drop of fiat debt notes?

MUST READ FULL PAPER BELOW!! [Read more...]

CFTC Votes 5-0 to Approve Final Rules Regarding Swaps Dealers

The CFTC voted Monday 5-0 to approve final rules regarding swap dealers and swap participants.  The CFTC states the final rules will become effective 60 days after publication in the Federal Register.

CFTC Issues Final Rules Establishing Swap Dealer and Major Swap Participant Requirements for Swap Trading Relationship Documentation, Swap Confirmation, Reconciliation and Compression of Swap Portfolios [Read more...]

Chicago Fed’s Evans Calls for Immediate OPEN-ENDED MBS Purchases

MOPE continues as the Chicago Fed’s Charles Evens in a speech today called for OPEN-ENDED MBS purchases.
Let that sink through for a moment.  Is the Fed preparing to announce open-ended and UNLIMITED QE??

Gold and silver are still MASSIVE BUYS in this QE to INFINITY environment. [Read more...]