Revolving Door? Shocking, Just Shocking . . .

Source: Chip Somodevilla/Getty Images

Source: Chip Somodevilla/Getty Images

Some wise folks have repeatedly told us that regulatory enforcement at the highest levels is compromised because of the constant flow of high-ranking government officials from positions of governmental power into the lofty, highly-paid perches of private employers who were once the subjects of regulation by those same folks.  
Look at all the criminal actions brought by the SEC against all of the wrongdoers in the subprime mortgage fiasco?
Right, not a single case.  
Or wait, there are all those bankers who fraudulently issued fake paper, assignments, robosigned documents, all of it, to allow big banks to foreclose upon homeowners who defaulted upon their NINJA, option-arm, no doc loans, who are serving time after being prosecuted by the Department of Justice, right?  <sound of crickets . . .>

Well, there is MFing Global, and the Honorable Corzine, right, who stole a billion in customer accounts, and is rotting in jail?  Err, wait . . . [Read more...]

Resistance

Yes, I and many others expect a rally…a significant rally…in the 2nd half of this year.
So this post is one to bookmark as we’ll discuss the various points on the chart where we can expect resistance to emerge.  The 2nd half of this year and then 2015 are going to be very interesting times to be alive.   Prepare accordingly.

Where might we find chart to resistance to the rally that is, most assuredly coming? (And, again, NOT just because the painted chart says so.   The London gold is “Gone…For Good” and the eventual realization of this will spur the rally to eventual new highs and beyond.)
Let’s start with gold.   For a plethora reasons, gold will NOT be breaking  down through The Double Bottom low of $1180.   It will instead, reverse course by later this month and then begin a slow-momentum build through the 2nd half of 2014.   First and foremost, gold must cross these two overhead resistance lines:

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It’s All Good!

muppetsThings couldn’t be better in our blissful economic utopia. I mean, for crying out loud, look at the stock market! It goes UP every day!! Things must be better than they’ve ever been.
The reason why the rich and get richer and everyone else is stuck in neutral and getting squeezed more every day is Fed policy.
Since direct debt monetization began five years ago, the “stock market” has soared and nearly tripled.   IF you had wealth and were able to participate, you’re pretty happy and you can at least still afford to drive and eat.  IF, on the other hand, you’re just a regular guy or gal with a spouse and a family, struggling to make ends meet, here’s what you’ve had to endure, instead: [Read more...]

Clarifying The Picture For June: Time to Raise a Mountain of Dry Powder!

dry powder silverSo, here’s the deal. DO NOT get itchy to buy or get long…YET.  Let this play out.
Raise a mountain of dry powder and wait. Lay in the weeds with full knowledge of what is coming and then pounce later this month. Don’t be fooled by the first time GOFO slips negative. Recall that it did so on 12/9/13 only to move back positive on 12/12/13 before moving decisively negative on 12/19/13 ahead of the 12/31/13 Double Bottom.
Of course, in the long term, it matters little whether you add to your stack at $1240 or $1200.
   I get that. And anyone simply stacking should be sure to add on a consistent basis.  For traders of metal and/or miners, however, the main opportunity awaits.

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Persistently Negative GOFO: The End of the Fractional Reserve Bullion Banking System is Near!

Negative GOFO is now the norm, not the exception.  In fact, since the price bottom at $1180 on June 28th of last year, there have been 229 market days. Of those days, GOFO has been negative for 133 of them or 58% of the time!  GOFO has been in positive territory just 42% of the time or 96 days.  For the previous 24.5 years, GOFO had only been negative for just 7 days.
Now, after the massive and counter-intuitive price slam, it’s negative nearly 60% of the time?!?
The “new normal” of negative GOFO is, in fact, symptomatic of extreme physical tightness and empty vaults in London.  Knowing this and the clear correlation of GOFO with price (that we will demonstrate below), you should adjust your trading strategies accordingly. For those of us who are stacking only, persistently negative GOFO is just another clue that the end of the fractional reserve bullion banking system is near. Whether or not that “end” comes in 2014 or 2015 matters little.  It is coming.
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T. Ferguson – The Emerging New Financial World Order Is Taking Shape

Turd Ferguson joins us today for an analysis of recent world events.  From the announced disbanding of the London Silver Fix to the unfettered Fed money printing, to China’s insatiable appetite for gold, to China’s confrontations with Japan and Vietnam and other countries, the New World Order is taking shape and America is conspicuous by it’s absence.   And so is the dollar.
What will a declining world power do to prolong it’s power? That remains to be seen. [Read more...]

Jim Willie: Holy Grail Currency Deal Coming Between Germany & China!

China goldJim Willie joins T. Ferguson for an excellent interview discussing:

  • The latest developments in the budding “Eur-Asian Alliance”
  • The progress the BRIC nations are making in setting up the 21st Century financial system
  • Falling U.S. interest rates and the treasury market- is a full-blow T-bond collapse imminent? 
  • Deutsche Bank and the other walking, TBTF zombies- which failing zombie bank is likely to trigger the next stage of the financial crisis? 
  • Holy Grail currency deal coming between Germany and China, as Frankfurt set to become a major renminbi currency hub!

Jim Willie’s full 60 minute MUST LISTEN interview is below:
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An Open Letter to the Good People of Switzerland: Your Gold is Gone!

Blythe Masters Jamie DimonI hate to be the bearer of bad news, Switzerland, but what you suspected all along is actually true.
Your gold is gone.
 All of it.
Leased and sold away by your central bankers and politicians. [Read more...]

T. Ferguson on The Curious Case of the GLD

Play

GLDTFMetalsReport’s T. Ferguson joins the show this week to discuss: 

  • The Vaults Are NEARLY EMPTY- why claims of a physical gold shortage is not stacker hysteria, but rather the COLD HARD TRUTH!
  • PM Sentiment sucks by design: Cartel fears Western investment demand with vaults vastly depleted- vigorously capping any and all price rallies
  • Big picture outlook:  Summer stock market decline & tapering halt
  • Doc sees the first signs of renewed PHYSICAL SILVER SHORTAGE- 90% silver premiums leap as supply dries-up

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & T. Ferguson is below! [Read more...]

T. Ferguson: The Vaults Are Empty, Price Spike Ahead!

empty-vaultWe’re getting reports that all of the gold stored in London is now gone.  So the bigger story in 2014 is: should Western investment demand return, from where will the gold come?  That is the major problem now for the bullion banks, and by extension the central banks: the gold is gone!  And that is why gold is being actively suppressed this year!”   [Read more...]

The Gold Spread and Wall Street Banks

It is so obvious, and so apparent, that I wonder why commentators have only now seen fit to begin commenting.
“It” of course, being the pronoun referencing the gold spread and the insane, short-term profits the Wall Street Banks have been reaping right before our eyes.   [Read more...]

The Empty Vaults of London- Fractional Bullion System to Fail Before End of 2014?

empty-vaultWith the price smashes of the past few weeks, the increasing desperation of the bullion banks seems palpable.
I now believe that we are truly witnessing the end of the era. We’ve all been waiting for the day when the fractional reserve bullion banking system would fail. I believe now that that day is very close. Maybe not next week or even next month but NOT 2017, either.
Sometime very soon, likely before the end of 2014. [Read more...]

GOFO Rates Plunging- Are We On the Verge of Another Rally?

As expected, London gold forward rates are plunging again during the New York Comex delivery month. In the recent past, this signal of tight physical supplies has correlated with higher prices.
So, are we on the verge of another rally?
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T. Ferguson: We’re Past the Point of NO RETURN: Inflationary Collapse Ahead!

coyoteIn this MUST LISTEN interview with Finance & Liberty’s Elijah Johnson, T. Ferguson explains why we are past the point of NO RETURN, and states that a full-blown inflationary collapse is DEAD AHEAD!! [Read more...]

Bank Participation Report Reveals JPMorgan Engaging in a Civil War, Goes Long Gold!

Blythe Masters Jamie DimonThe Civil War in gold continues. JPM Morgan is still NET LONG 45,000-50,000 contracts. The other 23 banks are desperately shorting gold, attempting to cap price and keep it below the technically-critical $1350-1360 area.
Which side will win in the end? That’s hard to say but I certainly think it would be foolish to bet against the ultimate Masters of Darkness. I mean, seriously…the other 23 banks continue on as if it’s business as usual…selling while prices rise and covering on dips…while JPM maintains it’s NET LONG position acquired while price from $1800 in October of 2012 to $1200 in June of 2013.
Clearly, the other 23 banks have a lot of ammo left to use to contain rallies,  but the key to 2014 and beyond continues to be JPMorgan. What will they do with their NET LONG position? Will they flip it back to NET SHORT? Will they stand for delivery?
Will they <gasp> actually 
add to it on continued price strength? 

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