Author: gork

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

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Post time 2013-7-23 00:13:56 |Display all floors
Gold Continues On Its Journey Upward

The policy of inflation by blowing asset bubbles continues.

In the 1990s, they inflated the bond bubble which burst in 1994. Then came the shares buble bursting in the dot-com bust. Then housing and commodities, with the liar/NINJA loans and the 2006 bust in housing and oil going from under $10 (it only costs about $1 a barrel to pump and get it to market) to today's $100 a barrel.

Now they're at it again. Goldman Sachs have been caught hoarding metal and creating a 100 day delay to get base metals out of warehouses. Metal is being shipped from warehouse to warehouse and back again. If they simply stopped moving the metal, then it would be noted. When Lehman Bros. collapsed, GS became a taxsucker insured bank. But though the laws prevented such banks from being commodities traders, the FED (wholly owned subsidiary of such banks) gave them a five-year grace period. Those who have bought and paid for the metals are liable for the storage costs.

There's a long delay to get gold out of the banks too, but that's because they haven't got any. The gold miners have sold gold forward in order to lock in the low prices, now that it has been smashed down.

Housing is obviously being pumped up in the US and UK too. The UK's Prudential has taken the leap into Buy2Let and US banks are doing the same. The so-called Funding for Lending scam has not lent any money to the SMEs as it was supposed to. Instead, the money is going largely to mortgages. Help2Buy is the UK taxsucker guaranteeing part of the mortgages.

Shares are obviously being pumped up despite already being well into bubble territory. Most of the sheeple money is controlled by financial institutions (the same ones that re dumping or taking possession of gold in the ETFs).

But all this money flowing into other asset classes will leak out into gold which is just about the only bargain out there.

Usually, comparing an earlier period in history to predict price movements is B.S. But the comparison with the 1974~1976 halving in gold price IS relevant here. Then, as now, the banksters were trying to supress the gold price but they failed. 1974 was also the year that Amerikans were allowed to own gold again. They failed in the 1960s when LBJ had the ridiculous dual gold price. They failed in 1933 when FDR revalued gold from $20.67 to $35. They cannot control the gold price for long when it is dependent on physical delivery. The ETFs have merely postponed the day of reckoning. The smashdown in April has been followed this month by a rise in the gold price every single week and a sharp rise today (Mondy). Even during the 12 year run-up that hasn't happened. In other words, they've reached the limits of their supression and only the gold miners selling gold forward can maintain the low prices a little longer before they too give up as they did in the noughties when they unwound their fake hedges and delivered their shareowners big losses.

Stay in gold and only physical gold and never give any of your savings to a thieving bankster unless you really, really, really have to.
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Post time 2013-7-24 14:26:27 |Display all floors
Portugal's debt has just blown through the upper limits set by the EU-IMF Troika, reaching to 127.2pc of GDP in the first quarter of 2013.
. . .
Italy's debt has hit 130.3pc -- compared to 123.8pc a year ago --

- Europe's crisis states should fight back with a 'debtors' cartel', Andrew Evans-Pilchard

His name refers to the food of the gods (heaven's pilchard) but his fishy stories merely stink to high heaven.

Notice the switch?

Instead of publishing absolute debt levels, Pilchard cites only debt relative to GDP. He often peddles the half-truth that "growth" (Keynesian deficit spending) is more important than paying down the debt because the denominator (fake growth) decreases, increasing the percentage debt level.

But the alternative is totally unsustainable and the numerator increases FAR FASTER relative to the denominator. In the US and UK, deficits are increasing at about 8% a year (though the US has (amazingly) reduced this year's to about 5%) whilst fake GDP growth induced by this debt is only 2.4% annualised for the UK in Q2 and 0.9% forecast by the IMF for the whole year. For the US Q2 is expected to be 1% annualised.

According to Zero Hedge (QBAMCO On Gold And Inflation: "Don't Fight The Fed... Front Run It") the US gained $4.61 of GDP for each dollar of debt between 1947 and 1952. But this had already fallen to 63c for each dollar of debt for '53~'84 and has only gotten worse since. The big boost was the post WW2 boom when the rest of the World's industry had been devastated by the war. This was also Warren Buffett's first decade of high profits when he invested only in US corporations. Only greed has kept the unsustainable dollar hegemony scam going.

So what we're seeing is the US and UK kicking the can down the road for a guaranteed WORSE situation later on, with the US seeming to realise, somewhat late, that the Ponzi scheme cannot go on now that it's debt level has overtaken GDP, but the UK ploughing on into infinity and beyond, suggesting the aim may be sterling parity with the dollar. Both the US and UK have, of course, MUCH larger unfunded liabilities as well but unlike the bond market they can AND ARE GUARANTEED TO default on those.

There have been many propaganda articles trying to deter investment in China and which, according to FDI figures, has already failed. Total system credit in China may be approaching 200%, but in the UK, as Morgan Stanley has pointed out, it is approaching 1,000% and as Doug Noland points out, the US has over 500% total system credit. The UK's commercial banks have 200% in overseas liabilities alone!!!! Clearly, they're trying to avoid a hyperinflationary run on the dollar and even more so on sterling. Japan is only following suit in order to assist the two "criminal states". The UK will very obviously be the first to implode with foreigner, Mark Carney, taking the blame.

Here's some more dealing from the bottom of the deck from Pilchard: The more these economies
deflate wages, the more they raise the real cost of debt.


That's only true for personal debt. For the nation, lower wages mean a lower deficit.
Compounding is the magic ingredient.

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Post time 2013-7-24 17:48:14 |Display all floors
Watch out for Gold Options Friday and Gold Futures Monday.
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Post time 2013-7-24 22:33:06 |Display all floors
This post was edited by gork at 2013-7-24 22:34

Portugal's debt has just blown through the upper limits set by the EU-IMF Troika, reaching to 127.2pc of GDP in the first quarter of 2013.
. . .
Italy's debt has hit 130.3pc -- compared to 123.8pc a year ago --

- Europe's crisis states should fight back with a 'debtors' cartel', Andrew Evans-Pilchard

His name refers to the food of the gods (heaven's pilchard) but his fishy stories merely stink to high heaven.

Notice the switch?

Instead of publishing absolute debt levels, Pilchard cites only debt relative to GDP. He often peddles the half-truth that "growth" (Keynesian deficit spending) is more important than paying down the debt because the denominator (fake growth) decreases, increasing the percentage debt level.

But the alternative is totally unsustainable and the numerator increases FAR FASTER relative to the denominator. In the US and UK, deficits are increasing at about 8% a year (though the US has (amazingly) reduced this year's to about 5%) whilst fake GDP growth induced by this debt is only 2.4% annualised for the UK in Q2 and 0.9% forecast by the IMF for the whole year. For the US Q2 is expected to be 1% annualised.

So, whereas Italy's debt increases by 6.5% according to Pilchard's figures, the UK's debt increases by 7.1%! And unlike Cyprus which levied a 6.75% bail-in only on those with deposits exceeding €100,000, the UK's inflation has stolen at a higher rate and, much nastier, on everyone who hasn't protected themselves with gold including the very poor.

According to Zero Hedge (QBAMCO On Gold And Inflation: "Don't Fight The Fed... Front Run It") the US gained $4.61 of GDP for each dollar of debt between 1947 and 1952. But this had already fallen to 63c for each dollar of debt for '53~'84 and has only gotten worse since. The big boost was the post WW2 boom when the rest of the World's industry had been devastated by the war. This was also Warren Buffett's first decade of high profits when he invested only in US corporations. Only greed has kept the unsustainable dollar hegemony scam going.

So what we're seeing is the US and UK kicking the can down the road for a guaranteed WORSE situation later on, with the US seeming to realise, somewhat late, that the Ponzi scheme cannot go on now that it's debt level has overtaken GDP, but the UK ploughing on into infinity and beyond, suggesting the aim may be sterling parity with the dollar. Both the US and UK have, of course, MUCH larger unfunded liabilities as well but unlike the bond market they can AND ARE GUARANTEED TO default on those.

There have been many propaganda articles trying to deter investment in China and which, according to FDI figures, has already failed. Total system credit in China may be approaching 200%, but in the UK, as Morgan Stanley has pointed out, it is approaching 1,000% and as Doug Noland points out, the US has over 500% total system credit. The UK's commercial banks have 200% in overseas liabilities alone!!!! Clearly, they're trying to avoid a hyperinflationary run on the dollar and even more so on sterling. Japan is only following suit in order to assist the two "criminal states". The UK will very obviously be the first to implode with foreigner, Mark Carney, taking the blame.

Here's some more dealing from the bottom of the deck from Pilchard: The more these economies
deflate wages, the more they raise the real cost of debt.


That's only true for personal debt. For the nation, lower wages mean a lower deficit.
Compounding is the magic ingredient.

Use magic tools Report

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Post time 2013-7-24 22:33:51 |Display all floors
If they simply stopped moving the metal, then it would be noted.


My bad.

. Industry rules require at least 3,000 tons be moved out of warehouses each day.

However, instead of delivering the metal to buyers, Goldman is moving just shuffling the metal between warehouses to skirt the intent of the rules.

- Why Is Silver Manipulation So Absurd?
Compounding is the magic ingredient.

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Post time 2013-7-25 23:05:26 |Display all floors
This post was edited by gork at 2013-7-26 23:48

UK Chooses the Hyperinflation Route

The propaganda rags have been saying the BoE won't increase the QE target until Aug/Sep this year.

This is because, at the current 39.3% rate of hyperinflation, the rest of the £375bn will be used up by about November and more QE will have to be announced to keep the hyperinflation going otherwise the debt deflation would take hold making the debts increase in real terms.

At the end of June the monetary base was £411.22bn. July would see £423; August £435; September £447; October £459; November £472. the base was £93.766bn at the end of Mar09 when QE began.

According to Morgan Stanley, the UK has almost 1,000% of GDP in total debt. The forecast deficit for this year will be another £120bn or 8% whilst GDP is only increasing at a projected 0.9% according to the IMF. The words "slow", "motion", "crash", "brick" and "wall" come to mind.

Some have conjectured that the seven year wait for just 20% of Germany's gold to arrive from the NY FED is the reason for the April smashdown; because they don't have the gold and need to purchase it. Yet 300 tonnes is roughly what has been imported by China in a few weeks, so it's like the russian default of only a few billion; too small to be plausible. So an alternative motive could be to send the message that for the next seven years the price of gold will be smashed. The relatively small amount of only 300 tonnes could have been chosen to avoid the alternative supposition; that the NY FED didn't have the gold. And soon after this announcement, the NY FED supposedly conducted an audit and announced some of the gold was even purer than previously thought, even as the US refuses to audit the similar volume of gold at Fort Knox citing cost. So it could just be a bluff, but expect the volatility "special effects" that Jamie Dimon threatened. A surreptitious earlier delivery could be later announced as a security precaution, whilst forestalling conjecture about the new monetary World order; why Germany wants her gold back.

However, it was March, the month BEFORE the smashdown when China imported a massive amount of gold. The smashdown could be to enable the banksters to cover shorts before the price shoots upwards.
Compounding is the magic ingredient.

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Post time 2013-7-26 09:33:40 |Display all floors
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