- Payrolls +204k – double expectations of +120k
- Unemployment rate RISES to 7.3%
- 623k full time jobs lost in October alone!
- Treasury futures HALTED for 5 seconds
- Gold & silver smashed…here comes the Taper MOPE…
3 unmistakable signs that the US Government’s totalitarian creep is turning into a grip:
1) The debt ceiling limit is removed, supposedly temporarily. The jury is out on the “temporary” nature of that – I bet the “no ceiling” status gets extended in February. No debt ceiling limitation essentially gives the Government its own printing press 2) Capital controls. Many are poo-poo’ing JPM’s move to limit the ability of depositors to wire money in and out of the country, but reports are indicating that other banks are going to follow suit and I would bet big money that it’s a “creep” toward capital controls. 3) NSA. Diane Feinstein surveillance legislation – need I say more?
Precious metals futures have become infiltrated by players with no business belonging there to begin with.
Price discovery on the largest precious futures trading system goes on protected by a financial system and legal system desperate to protect its importance.
It is fraudulent.
This is especially the case in gold and silver, even to the point where confidence in this market threatens to turn the world financial system upside down.
In likely his longest and most in-depth interview ever given to date, Jim Willie discusses the sunset of the King Dollar, and gold’s up and coming role as a global reserve currency.
Willie breaks down the introduction of capital controls in the US, and the fact that all the signals point to the same conclusion: The system is breaking down.
“5,000 tons of gold have moved east in the past year. The game is over. The King Dollar is dead.”
Willie’s full MUST LISTEN interview is below:
Gold topped out 25 months ago in September of 2011. It has been 30 months since silver briefly bested the magical, mystical 50 dollar mark in April of 2011. To put it another way, Gold has been down for the last 759 days, while the high in silver took place 916 days ago.
The last nine hundred and sixteen days have effectively winnowed all of those upon whom these arguments and personal attacks would have any effect. The people trying to make a quick score are long gone. The people who really didn’t understand what the phrase “The end of the great Keynesian experiment” really means left this market some time ago. Those who simply couldn’t withstand the mental pounding these markets have delivered are certainly long gone.
If you are still here it is because you: 1. are mentally strong enough to withstand a truly harrowing investing environment, and 2. You have genuinely embraced the long-term approach to wealth preservation and investing. We have separated the wheat from the chaff in this market. The only people who are left are the ones who truly get it, who understand the macro forces at play and who know what it really means to be a stacker.
The only people left in this market are stubborn, tough, unshakable veterans of the wars, and are more than just a bit ornery. And they know what to do during times like these.
David Morgan from the Morgan Report chats with Cambridge House Live’s Vanessa Collette about Janet Yellen’s rise to the top job at The Fed and what the silver price is going to do over the next few months.
Morgan discusses the psychology behind why “people don’t buy bottoms” and whether investors will look back upon 2013 as the buying opportunity of a lifetime for gold and silver.
We don’t have enough workers earning enough and paying enough Social Security payroll tax to support 57 million retirees. There are only 13 million high-wage earners (above $85,000 annually), and those with very high incomes pay no more Social Security payroll tax than those earning $113,000.
This is not sustainable. The average Social Security benefit is $1,230 a month or about $15,000 a year. It takes the payroll taxes of roughly 10 million low-wage workers to fund 1 million retirees receiving $15,000. The system needs another 57 million decent-paying full-time jobs to be sustainable in it’s current form, i.e. the ratio of full-time workers to beneficiaries needs to rise back up to 3-to-1.
Unless 57 million Martian workers agree to kick in 12.4% of their quatloos (and assuming quatloos are convertible into dollars), the system is a doomed Ponzi scheme.
System costs will be rising fast as the Baby Boom retires en masse. There is no guarantee Social Security payroll taxes will rise at the same rate. Indeed, a recession or stagnation in the job market could cause payroll taxes to decline even as benefit costs soar.
Ignoring the facts won’t help us address the insolvency of pay-as-you-go social programs.
Shouldn’t Internet companies actually “make a profit” at some point before being considered worth billions of dollars? A lot of investors laugh when they look back at the foolishness of the “Dotcom bubble” of the late 1990s, but the tech bubble that is inflating right in front of our eyes today is actually far worse. For example, what would you say if I told you that a seven-year-old company that has a long history of not being profitable and that actually lost 64 million dollars last quarter is worth more than 13 billion dollars? You would probably say that I was insane, but the company that I have just described is Twitter and Wall Street is going crazy for it right now. Please don’t get me wrong – I actually love Twitter. On my Twitter account I have sent out thousands of “tweets”. Twitter is a lot of fun, and it has had a huge impact on the entire planet. But is it worth 13 billion dollars? Of course not.
When it comes to the Internet, what is hot today will probably not be hot tomorrow.
The following are 14 facts about the current tech bubble that will blow your mind…
Gold & silver have been absolutely hammered this morning as the ECB cut rates 0.25% shocking the market, with Mario Draghi warning that Euro area growth risks remain on the downside.
Silver was instantly smashed from $22 to $21.34, and gold from $1318 to a $12 handle at $1296.
While hyperinflation or a currency crisis can take months to develop, it will ultimately catch most by surprise. Of course, those who are prepared will not be welcomed.
Hoarders will be blamed. Metals could be banned and/or taxed and, eventually, re-priced far from the futures exchanges.
The return of precious metals to monetary status will not be welcomed by those who stand to lose the most.
How do you survive and possibly thrive in this environment of theft and wealth transferring and extreme market manipulation?
You have to recognize that there is manipulation going on and try to understand what it is and then act accordingly. And of course the masses of people don’t get it, they don’t believe it. They’re content to take at face value what they’re told by the mainstream media and what people really have to understand is that the manipulation is systemic. It is the fiat currency itself is a manipulative tool that allows those to control fiat money to reallocate wealth from those that produce it; I would like to say the miners, the manufacturers, the farmers, the inventors, people that are actually doing things that are of value to other human beings are not getting their fair share. Instead the government and the Federal Reserve and the banking system, that has control and has first dibs at new money creation that really end up becoming more and more wealthy. So just by being in the system and holding dollars you are being taken advantage of.
Hey, did the actor Bill Murray body-swap for IMF spokesman, Bill Murray? The latter issued some mildly amusing statements worthy of his gofer-blasting Hollywood counterpart.
Last month the IMF released its monthly journal, “Fiscal Monitor.” The October issue focused on the subject of taxes and debt burdens worldwide. You can access the report in all its 107 page glory by clicking here. The report included analysis of a wealth tax among policy options to reduce public debt burdens. Apparently, as reportage spread, IMF feathers were ruffled.
“We’re not recommending a wealth tax, it’s an analytical work,” IMF spokesman Bill Murray noted at a news conference. “That’s a staff analysis suggestion… it’s not a policy statement from the Fund,” he said.
We all intuitively grasp the meaning of diminishing returns: Either it takes more effort to maintain a project’s payoff, or the payoff declines even though the effort invested remains constant.
Eventually, returns decline to zero or even negative territory, and doing more of what worked well in the past fails in a spectacular fashion.
Internal inflationary forces in the US economy tend to occur during the later stages of an economic upswing. The US central bank believes in an 8 year business cycle, and the last one peaked in 2007. By mid-2014, the current cycle will be very mature, and prone to inflationary pressures.
Failure to address precious metals market manipulation is your true legacy, Mr Chilton. Position limits by themselves fix nothing. To your credit, you did make the space for GATA’s Bill Murphy to introduce critical testimony to the CFTC during a 2010 publicly broadcast hearing. But that’s the only thing we can objectively point to suggesting your job performance wasn’t just another example of a spineless regulator captured by the industries he is supposed to regulate.
But it’s not to late, Mr. Chilton. You can still become a whistle-blower.
As the Banks & Brokerage Houses continue to forecast the tapering of the QE by the end of 2013 or beginning of 2014, the only choice the Fed will have will be to increase not decrease monetary stimulation. QE 5 is coming because U.S. economic indicators continue to disintegrate.
The Fed can’t stop its QE purchases or the whole house of cards comes crashing down. Marc Faber stated that the Fed purchases could rise to a $trillion a month. Who knows if we ever get to that amount, but before we do…. QE 5 is on its way.
There is only a fraction of physical gold and silver to back up the massive amount of paper claims. As QE heads to infinity, it will most certainly push the precious metals up to new highs never seen before.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert, “remember, remember it’s yet again the 5th of November and banksters and conmen still rule” whether with Obamacare’s privatization of healthcare or private equity as the new slumlord toll collectors. In the second half, Max interviews Charles Hugh Smith about peak retirement, peak jobs and the chances of China holding the next reserve currency.
Turkey’s gold imports jumped more than threefold in October to 15.98 metric tons, from 4.8 tons in September, according to the Istanbul Gold Exchange’s website. That’s the highest since July, the data shows.
Turkey has already imported 251.4 metric tonnes in 2013, year to date, meaning that it will come very close to or surpass the record import year in 2005 when 269.5 metric tonnes of gold were imported).
Year to date imports are more than double the amount of gold imports in 2012 and more than triple those in 2011.
Gold is gradually being remonetised again in Turkey and this trend will soon be seen globally. With gold soon to become a Tier 1 asset, banks will attempt to get a significant amount of investment grade gold bullion onto their balance sheets in order to buttress them.
Desperate people do desperate things, and it appears that Americans are rapidly becoming a lot more desperate. An epidemic of thievery is sweeping across America, and authorities are not quite sure what to make of it. So why is all of this happening? Well, as we have written about previously, crime is on the rise in the United States, and poverty is absolutely exploding. In fact, according to the latest numbers from the U.S. Census Bureau, 49.2 percent of all Americans are receiving benefits from at least one government program each month. Over the past five years, we have seen an unprecedented rise in the number of people that cannot take care of themselves without help from the government. Millions upon millions of Americans that have been forced into poverty are becoming increasingly angry, frustrated and desperate. And what we are watching right now is only just the beginning – all of this is going to get a whole lot worse.
Our talented Pining caught up Bart Chilton on his way out the door at the CFTC today…