Author: gork

Thank You Jamie Dimon for Illegally Smashing the Gold Price Again   [Copy link] 中文

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Post time 2013-9-7 19:04:12 |Display all floors
Another Friday evening banging of the close on gold but not on silver. As Paul Craig Roberts says, this is because they know gold will protect you from the confiscation and/or because they know a much higher gold price is the policy.

Jamie Dimon hopes that you can't stay solvent longer than the market can stay irrational and believes he has greater staying power than you. This is where the advice to invest for the long-term comes in. It's not that you should hold onto a losing bet until the markets turn again. it's that you should know the market is out of kilter and you have to hold on until it reverts to fair value.

Gold is clearly massively undervalued and under a gold standard would now be £47,000 (£469bn M0 against 310.3 tonnes) or $15,487 ($4.05trn M0 against 8,133.5 tonnes). So all you have to do is outlast Jamie Dimon.

You know:

1) the LBMA, ABN Amro and others have defaulted on gold,
2) gold is in backwardation,
3) Germany has to wait 7 years to get 300 tonnes (but probably all 2000) of gold back,
4) they're printing 40% more paper currency every year,
5) China and India alone import all the World's mining production of physcial gold,
6) the gold price is at a level where half of the miners aren't even making a profit, and
7) this is the only free lunch you're ever likely to get.

So buying gold now is a no brainer. Only the suckers who know the price of everythign and the value of nothing are fazed by the two year hiatus in the price rise.
Compounding is the magic ingredient.

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Post time 2013-9-8 00:09:13 |Display all floors
How You Know a New Gold Standard Is Coming

1) the central banks are all buying/repatriating their gold; Germany demanding ALL (which is why it will take 7 years) her gold back from the NY FED,
2) China and Russia have demanded a new supra-national currency (as though it's been agreed in private) and Russia's president Medvedev held up a gold coin as "future"  currency,
3) Germany stated that there's no point in storing german gold in Paris as they share the same currency. In other words, it would be backing the euro whether the gold was stored in Paris or Frankfurt or France importing goods from Germany would not need to pay in gold,
4) the euro now dominates international trade (40% vs the dollar's 24%), with China trading with Ausralia, Japan and soon New Zealand, bypassing the dollar and with barter agreements with Iran, Russia, Venezuela and (I think) Kazakhstan, so dollar hegemony is already over,
5) Guido Mantega's comment of a "currency war" was NOT, of course, a reference to competitive devaluation but competition for a dominant currency,
6) the only viable alternative to the dollar, now that it's no longer dominant is a new gold standard as no one is going to impose a global legal-tender law by illegally invading countries to support either a euro or an SDR but everyone accepts gold because it can't be printed out of thin-air and a global currency would mean no independent monetary policy but lots of squabbles and capital flows being the one out of the Mundell-Fleming trio that looks like it will be ditched,
7) the Bank of England has retained 310.3 tonnes of gold, making calculations of the gold price against the monetary base easy (perhaps 311.034768 tonnes would be too obvious),
8) all nations are already stuffed to the gills with dollars, so don't need to earn them to buy oil,
9) the only possible way to exit QE, given the levels of debt is for the US Treasury to run a balanced budget (in other words sound money, in which case they may as well have a gold standard),
10) following arguments about who should limit trade imbalances, debtors or creditors, both China and the US have now limited trade deficits/surpluses to under 3% of GDP, meaning no Triffin Dilemma excuse to flood the World with dollars, and
11) the US is talking of energy self-sufficiency, meaning no more flooding the World with dollars.
Compounding is the magic ingredient.

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Post time 2013-9-8 20:04:35 |Display all floors
Plucking Feathers With the Minimum of Squawking

As well as the seven years for Germany to get back her gold, apparently in ten batches per year, the other BS that doesn't make sense is the Cyprus bail-in which was widely announced before being rejected.

The demand for Germany's gold probably means that ALL of it has been demanded back and not just 300 tonnes.

The rejected Cyprus bail-in, even though they closed the banks before announcing it, is probably more herding and similar to that of the Northern Rock bank-run in the UK. In other words, it's to get the sheeple to hold cash which will be devalued through inflation.

Other propaganda stories claim the UK and New Zealand are also considering a bail-in. Yet both have their own currencies and can devalue. The UK's monetary base, for example, is being hyperinflated by 40% every year. So you need to get 40% return after tax in a deposit account otherwise you're losing money at 28.6% every year (1/1.4)!!!! Yet because the numbers on the bank account don't go down, the suckers think they're not losing money. Meanwhile the propaganda rags lie about the rate at which prices are rising in the shops. One article noted the rioting in Cyprus because of the bail-in, but no rioting in the UK where the inflation tax is FAR HIGHER. Even Mervyn King expressed disbelief that the UK's sheeple were taking it lying down. Lying down and brain-dead that is. The Amerikan sheeple still think the Great Depression a century ago was deflationary!!!

"In a World of thieves, the final sin is stupidity".
Compounding is the magic ingredient.

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Post time 2013-9-9 16:38:16 |Display all floors
More Flagrant Illegality

http://goldprice.org/charts/gold_3d_b_o_GBP.png

Yes, as well as banging the close on gold (but not silver), the banksters are also banging the open. This is clearly as illegal as attacking Syria where Ban Ki Moon has stated only an imminent threat or retailiation would be legal. The amerikan propaganda, though, has already referred to "retaliation". President Putin, meanwhile, says Kerry is a liar and knows he's a liar and also claims the attack would be illegal.

The US and UK are totally lawless as John Pilger says, they're "criminal states". As Paul Craig Roberts says, their war criminals and gangster run states. As Tony Bennet implies the Great Satan is the terrorist throwing its weight around the World as its gangster-run economy implodes and it has to defraud its sheeple.
Compounding is the magic ingredient.

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Post time 2013-9-11 01:15:50 |Display all floors
Why Is Gold So Important?
- staying the course

The barbarous relic (supposedly the gold standard) was termed "tradition" by B.S. Bernanke, despite central banks now buying gold.

Jamie Dimon too, suggested, not that his clients should dump gold, but that they should short it. Why, when it's supposed to be so unimportant and why does JP Morgan now accept gold as collateral? Why is JP Morgan buying so much off HSBC and Scotia Moccatta? Why is it now long gold?

With over 500 cuts to interest rates around the World in recent years and central bank balance sheets hyperinflating (UK 824%, China 577%, US 443%, Jan02~Aug13 - "Gold Bull & Debt Bear in 50 Charts"), why is gold falling rather than rocketing as it should be?

As Paul Craig Roberts says, they're smashing the gold price because gold provides protection from the financial repression; high inflation; low yield.

Anyone who speculates in the markets is attacked by the banksters. This is why fantasy portfolios do so well compared to real ones. The banksters hope you're a day-trader, a.k.a. a sucker. They hope to immediately deliver you a loss and hope that you capitulate and sell. So stay with physical gold. Do not sell because they're already looooosing control of its price as China and India account for just about all of global mining supply.
Compounding is the magic ingredient.

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Post time 2013-9-11 23:19:22 |Display all floors
In it for the long-haul

But having said that, it is frustrating, and a lot of people are now giving up.  I was speaking to several of my friends in the space this morning and they are really upset because a lot of people are being driven out of the gold and silver markets by this price action, which is purely manufactured.
- West Now Engaging In Psychological Warfare As It Implodes

Or as Eddie Murphy's character in "Trading Places" said, "you'll have cleared out all the suckers by then".

Only a fool would think they can make a "quick buck". The banksters even attack anyone who has just placed a sizeable bet in the market, hoping they'll easily give up early and to prevent them from profiting from fluctuations (aka "suckers" or "day-traders"). This is warfare and you have to take the rough with the smooth. The banksters even started both World Wars in order to impose fraudulent fractional reserve gold-exchange standards at the cost of TENS OF MILLIONS of lives each time. Only in the long run will the markets tend towards fair value.

All the markets are rigged and these crooks have stooges:

The company previously announced that it had entered into forward contracts for 5.3 million ounces of silver and 24,000 ounces of gold, at average prices of $20.43 per ounce of silver and $1,323 per ounce of gold, spread relatively equally over a period of 12 months.
. . .
President and CEO Geoff Burns commented on the company's decision; "We decided to put the hedges in place as a short-term tactical response to reduce risk during a time of extreme price volatility. However, our action may have inadvertently sent the wrong message to the market and to our shareholders about our hedging philosophy and our view of the long-term prospects for silver and gold."

- Pan American Silver repudiates recent hedging

Selling forward is not a hedge and at the time of writing, the price of gold was $1361.74 and silver, $23.11. In other words, this crook deliberately sold forward gold and silver at a dip in the price where it was even below the cost of production for most miners in order to support the banksters and in violation of his fiduciary duty toward his shareholders and is now unwinding that bogus hedge at further loss too.

However, ABN Amro has defaulted, the LBMA has defaulted and it looks like the CRIMEX might be about to default too.
Compounding is the magic ingredient.

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Post time 2013-9-12 22:36:33 |Display all floors
With the UK having hyperinflated its monetary base by 824% vs the US' 577% since Jan2002, GBP should (ceteris paribus) be at about parity with USD. The euro too started out at parity with USD. This is probably the aim for the new monetary World order. The new regime can only be a new gold standard.

According to Mundell-Fleming, nations can have at most two out of the three: independent monetary policy, fixed exchange rates, free capital flow. Put more succinctly, if you want independent  monetary policy and fixed exchange rates you can't have free flow of capital.

Currently Hong Kong has sacrificed monetary policy for a fixed exchange rate against USD. China has sacrificed free flow of capital. The eurozone has sacrifced monetary policy to the ECB. However, under the gold standard fixed exchange rates weren't always fixed. There were occassional devaluations. Hence as Bobby Zoellick suggested, using gold as a "reference", as an international reserve currency with paper currencies floating against gold could be a new gold standard, allowing free capital flow and independent monetary policy whilst preserving value.

The UK has 310.3 tonnes of gold against a monetary base which will be £468bn toward the end of the year, giving a price of £46,910 per ounce. Deficit nations, in particular, would tend toward 100% backing of the paper as the more gold they have the higher the deficit, assuming free market forces that is.

The gold price continues to be hammered for the afternoon London Fix for the seventh day in a row. A lot of suckers will be selling about now when they should be buying. This is the fix that is used for buying from the miners, some of which are "hedging" by selling forward at prices near the recent nadir.
Compounding is the magic ingredient.

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