Gold Daily and Silver Weekly Charts – Slowly Higher, More Gold Withdrawals

The precious metals managed to drift higher, with some capping action in the late afternoon.
There was a rumour this morning that the ECB would start buying corporate debt at the end of this year, and visions of QE European Style had stocks zooming, and the precious metals were in rally mode, even that poor old mule silver.
But capping came into play, as stocks continued on their short squeeze, helping to ease the pain that the hedge funds were dealt just a week ago.
There seems to be quite a few tonnes of gold bullion taking off for Easterly destinations. I doubt that gold will be returning anytime soon at prices anywhere near where we are now.
But that is tomorrow. Let’s keep our priorities, and see if bullion can finally break this price downtrend, and breathe some like back into the charred mining sector.

This post was published at Jesses Crossroads Cafe on 21 OCTOBER 2014.

Russia Adds A Record 1.2 Mio Ounces Gold To Its Reserves

As evidenced by the Russian central bank, it appears that Russia has added another 1,200,000 ounces of physical gold to their reserves. Total Russian gold reserves now stand at 37,000,000 ounces, or 1049 tonnes. The following chart, courtesy Sharelynx, shows the increase of Russian gold reserves over the last 8 years.
The latter part of the chart shows the monthly change. It is very interesting to note how September 2014 attributed to the biggest month-on-month increase ever. Only in May 2010 was there an increase which came close to the one of last month with an addition of 1.1 million ounces.

This post was published at GoldSilverWorlds on October 21, 2014.

Carl Icahn: “The Fed Turned This Market Around Here”

By now, 6 years after America’s grand experiment in recreating Soviet-style central planning started, it should be clear to all except that subset of Homo Sapiens also known as “economists”, that the Fed’s QE is not helping the economy. In fact, it is merely boosting wealth inequality, leading to asset price (hyper)inflation, middle class devastation, and its inevitable outcome is yet another asset bubble can which will need to be kicked eventually leading to even greater economic misery, greater inequality, and more warfare. In fact the two final outcomes of more QE are becoming increasingly: broad hyperinflation a lathe Bernanke chopper, which implies a failure in the reserve currency, and rising social conflict, which culminates in a French revolution-type social revolt when the poor finally roll out the guillotines.
The above is also largely clear to most, except the members of the Fed of course. So it is for their benefit that we present what two people who actually work in the markets for a living, something that nobody in the Marriner Eccles can say, have to say about QE. We can only hope someone in the US money printing department reads it, but we doubt it.
First, here is David Einhorn, who spoke at the annual, and amusingly misnamed, hedge fund gala known as the Robin Hood Investor Conference, talking about Fed policy:

This post was published at Zero Hedge on 10/21/2014.

10 Things About The U.S. News Media That They Do Not Want You To Know

Do you trust the news media? Do you believe that the information that they are giving you is true and accurate? If you answered yes to either of those questions, that places you in a steadily shrinking minority. Yes, on average Americans watch approximately 153 hours of television a month, but for their news they are increasingly turning to alternative sources of information such as this website. Big news channels such as CNN, MSNBC and Fox News are losing hordes of viewers, and they are desperately searching for answers. Things have gotten so bad at CNN that they have been forced to lay off hundreds of workers. The mainstream media is slowly dying, but they will never admit it. They are still convinced that they can find some way to turn this around and regain the trust of the American people. But it simply is not going to happen. The following are 10 things about the U. S. news media that they do not want you to know…
#1 The level of trust in the U. S. news media is at an all-time low.
According to a Gallup survey that was conducted last month, only 40 percent of all Americans have a “great deal/fair amount” of confidence in the mass media. That ties the lowest level that Gallup has ever recorded.
#2 The news media is far more liberal than the American people.
We hear much about the supposed “conservative bias” of Fox News, but the truth is that overall the U. S. public considers the news media to be extremely liberal. Gallup found that 44 percent of all Americans consider the news media to be “too liberal”, and only 19 percent of all Americans consider the news media to be “too conservative”.
And it is a fact that “journalists” are far more likely to give money to Democrats than to Republicans. The following comes from an MSNBC report…

This post was published at The Economic Collapse Blog on October 21st, 2014.

Socialist Party Demanding $20 Minimum Wage Insists It Should Not Be Subject To $20 Minimum Wage

The socialist party in Seattle that wants to raise the federal minimum wage to $20 per hour but advertised a job last week for an experienced web developer paying just $13 per hour is now defending itself.
The Huffington Post, which was sued by a bunch of unpaid bloggers after founder Arianna Huffington sold the website for $315 million, has the story.
The argument from the Freedom Socialist Party is that it cannot afford the minimum wage it seeks to impose on every commercial entity in America. (RELATED: Seattle Socialist Party Wants $20 Per Hour Minimum Wage, Offers $13 Per Hour For Website Manager)
Doug Barnes, the Freedom Socialist Party’s national secretary, claimed that the collectivist political organization shouldn’t be subject to its own wage demands because it is a nonprofit that receives revenue from leftist contributors.
‘We’re practicing what we’re preaching in terms of continuing to fight for the minimum wage,’ Barnes told the HuffPo. ‘But we can’t pay a lot more than $13.’
Barnes also suggested that the Freedom Socialist Party would make more money off the backs of the low-wage workers he claims make many contributions if the federal government or state governments forced businesses to pay employees a minimum of $20 per hour.
‘Our donor base would all be affected, and the low-wage workers who support us with $5 to $6 a month would be able to give more,’ he told HuffPo. ‘That would affect our ability to pay higher wages as well.’

This post was published at The Burning Platform on 21st October 2014.

Fed Inspector General Finds NY Fed Knew Of JPMorgan ‘Whale’ Risks In 2010, “Missed Opportunity”

Just two years after “The London Whale” took a storm-in-a-teacup to a balance-sheet-busting reality for Jamie Dimon and exposed a face-slapping level of regulatory ignorance of how the TBTF banks ‘trade’ and ‘lever’ their balance sheets, the Federal Reserve’s Inspector General has issued their findings…
Bear in mind, as @ctorresreporter notes, the Fed’s OIG report is a 4-page summary and The Senate released a 300-page report last year… Choose Your Watchdog!!
The Board Should Enhance Its Supervisory Processes as a Result of Lessons Learned From the Federal Reserve’s Supervision of JPMorgan Chase & Company’s Chief Investment Office
In May 2012, media outlets reported that JPMorgan Chase & Company’s (JPMC) Chief Investment Office (CIO) incurred approximately $2 billion in losses due to a complex trading strategy involving credit derivatives. Losses continued over the following months and surpassed $6 billion by the end of 2012. This matter highlighted corporate governance, risk management, and internal control weaknesses at JPMC, which resulted in reputational damage to the institution and considerable congressional, regulatory, and public scrutiny.
In July 2012, we initiated this evaluation (1) to assess the effectiveness of the Board of Governors of the Federal Reserve System’s (Board) and the Federal Reserve Bank of New York’s (FRB New York) consolidated and other supervisory activities regarding JPMC’s CIO and (2) to identify lessons learned for enhancing future supervisory activities.

Findings…
Our report contains four findings.

This post was published at Zero Hedge on 10/21/2014.

Gold Is Extending Its October Run

The correction in the Dollar helped gold as the Gold SPDR GLD advanced over 5% from its early October low. The first chart shows GLD breaking the August trend line and moving back above the support break. In an interesting twist, gold is ignoring weakness in the Euro today and moving higher. While I am not sure if this will last, I would mark first support at 118 and stay positive on gold as long as this level holds. All bets are off if the Dollar breaks out to the upside.

This post was published at GoldSilverWorlds on October 21, 2014.

Swiss: If You Say “No” to the Gold Initiative Referendum

The Swiss Gold Initiative wants:
1. No further Gold sales by the SNB!
2. All Swiss Gold stored in Switzerland!
3. The Swiss National Bank must keep at least 20% of total assets in the form of Gold!
If you say “No” to the Gold Initiative If you say “No” to the Swiss Gold Initiative referendum on november 30, these will be the consequences:
Switzerland’s economic policy will be dictated by the EU Swiss Franc will be tied to a weak EU and a weak Euro UK and Canada will hold CHF 12 billion of our gold that we might never get back Inflation and cost of living will increase dramatically

This post was published at Gold Broker on Oct 21, 2014.

Why did the IRS just threaten me with imprisonment?

I walked in the door this morning to my apartment in Santiago, happy to be back in Chile after a week away.
(One of the things that I really love about this place is the weather. The weather forecast in the entire central region of Chile is typically just a string of yellow circles. Yet it’s not so hot that you need air conditioning. I love it.)
But my mood was quickly spoiled when my maid handed me an envelope.
‘It looks official,’ she said, staring at me to gauge my reaction. She was right. The sender was the United States Department of Treasury.
Clearly my first thought was wondering why the US government was sending me anything, especially to my apartment in Santiago. My second thought was utter astonishment that the US Postal Service had managed to get it here!
I ripped it open and found… a check. Made out to me. It was my tax refund.
As an aside, I’ll tell you that living overseas has a lot of huge benefits. One of them is that your taxes are almost always going to be lower.
If you’re American, you can earn up to $99,200 in foreign income, tax free. This amount goes up every year (not that there’s any inflation).
If you’re married, you and your spouse can BOTH claim the foreign earned income exclusion, meaning you can earn nearly $200,000 as a couple, tax free.
And when you include the additional deduction you can receive on foreign housing, your total tax benefit living overseas can easily be upwards of $250,000 or more.
Just imagine being able to put an additional $250,000 in your pocket each year, instead of giving that money to a bankrupt government to finance drones, bombs, and body scanners. (More on this in another letter…)

This post was published at Sovereign Man on October 21, 2014.

How Japanese Hyperinflation Starts (In 1 Chart)

The Japanese Yen’s real effective exchange rate (REER) has collapsed to the weakest since 1982, according to Mitsubishi UFJ Morgan Stanley Securities. Simply put, REER is a trade-weighted measure of Yen strength (or weakness) against, in this case, 59 trading partners; and as the nation posts an unprecedented 26th straight month of trade deficits, Bloomberg reports MUFJ indicates “a structural shift” has taken place. [42nd straight month of Seasonally-adjusted trade deficits]

As a reminder, the Real Effective Exchange Rate (REER) is:

This post was published at Zero Hedge on 10/21/2014.

Exclusive ~ Golden Jackass Rebuttals to Jim Rickards Rant

Some people in our community have wondered exactly whose side Jim Rickards is on. Many have recently argued he is nothing more than a mouthpiece for the globalists. Perhaps we should question anyone who is purporting that an SDR currency could be the solution. That is the solution for the globalist thieves. Meet the new boss, same as the old boss. Mr. Rickards was interviewed by Greg Hunter recently. The below are comments from our friend Jim Willie, whom we believe to be one of the best sources of information that doesn’t work for the parasitic cartel of banking thieves. Jim Willie’s work can be found at GoldenJackass.com
First we give you the interview with commentary and Dr. Willie’s rebuttals below

Jackass review with critique interspersed
The Chinese are hedging against not only the USDollar risk inherent to their vast reserves, but the entire global USD-based financial structure. / jw
– $$$ RICKARDS ON HUNTER WATCHDOG SHOW SPOUTED ABOUT MANY TOPICS… HE DOES NOT EXPECT CHINA TO BE IN POSITION FOR YUAN TO ACT AS RESERVE CURRENCY… HE EXPECTS THE INTL MONETARY FUND TO BAIL OUT THE CENTRAL BANKS WITH OVER $4 TRILLION IN SDR BASKETS OFF THE PRINTING PRESS… RICKARDS DOES NOT FORESEE THE CHINESE LAYING THE GROUNDWORK FOR A RETURN TO THE GOLD STANDARD (WITH YUAN IN PRIMARY ROLE), AS HE ONLY SEES A USDOLLAR HEDGE. $$$ Jim Rickards is an interesting figure, author of a new book entitled ‘Death of Money’ that has been well received. He is a culpable system wonk and serves a purpose while appearing as a maverick and friend of gold. The following are his thoughts put to prose, with my rebuttals in bold parentheses. The Islamic State, the emerging caliphate, is not a new concept, but rather an old fixture for centuries, now awakened. The USGovt has been caught off guard (nonsense, the USGovt actively revived it for their destabilization purposes after exiting Iraq, to use the wild card). Their guerrillas have captured equipment, and been supplied possibly by diverted Saudi arms. A risk of spectacular terror attack exists, including a risk from disruption of oil transport. The United States depends little on Gulf oil supply, but China and Europe depend heavily on the Gulf region for their oil, suddenly at risk. The crude oil market has 3 main factors currently working to provoke a price decline. 1) supply & demand equation slowing down, 2) geopolitical wild card not seen yet, 3) monetary policy giving us deflation. Rickards dislikes the black swan metaphor, and prefers the snowflake and avalanche, which signifies the accumulated risk. The Ebola virus presents a pandemic risk, but still is just a snowflake. It could grow to become a pile of snow, or to become an avalanche.
The financial markets can be taken down by unforeseen events. However, the many blunders to date are built into the system, already recognized, having happened, and factored in. Rickards cannot anticipate the timing of calamity, but the magnitude of the collapse can be foreseen. Rickards accuses Russia as having responded asymmetrically with cyber warfare, an example at Nasdaq in 2010. (But Russian virus traces could easily have been planted by Langley software experts. Langley has been improperly painting Iran and China for many years, to take blame for Langley’s own extensive work in cyber attacks.) People must realize that securities and assets are not money. People do not know what money is, which is cash or precious metals. If restrictions or market shutdowns occur, then they learn fast what is money and what are stuck assets. Rickards suggests to have 10% in gold & silver, as one asset class. Gold is not digitalized, has no counter-party, has no limitations like cash limits on withdrawal.
Notice all the Too Big To Fail banks have even greater concentration of assets than in 2008. It is therefore easier to lock down the few big banks if the goal is to limit withdrawals and access. The non-directional volatility in stock market is evident, big up and down moves on successive days. Rickards is certain of no rate hike by the USFed, as he is more afraid of deflation taking fast root. (Total agreement on ZIRP Forever.) Notice how Buffet bought several hard assets and sits on record level of cash (20%). A calamity is coming as certainty, but when it hits, it will be exponentially larger than any collapse in past. A progression is crystal clear. The 1998 LTCM failure was big, the 2008 Wall Street failure bigger, maybe in 2016-2018 the USFed will be in trouble with other major central banks for the biggest calamity. (USFed has been in deep trouble, near catastrophic trouble since the start of QE bond purchases.) Each crash is bigger, and each bailout bigger than the previous. The central banks are set to fail, but some entity must be ready and have huge potential to bail out the central banks.


This post was published at Perpetual Assets on October 21, 2014.

20 Billion British Money Laundering Scam Goes Through Eastern Europe, Ends in HSBC, RBS, UBS and Citibank

21st Century Wire says…
This story should raise some important questions about organised crime’s influence on our judicial and economic systems – in times of crisis.
A recent money laundering investigation by a British Newspaper, The Independent (see story below), reveals a complex accounting and legal shell game of British-based front companies, laundering their illicit proceeds through phony lawsuits, followed by massive wire transfers to Latvian and other banks. Money transfers are effectively rubber stamped by corrupt Moldovan judges.
Are these white collar crimes exclusive eastern European gangsters, or do well-known British financial brands also do the same?

FOLLOW THE BALL: Dirty white collar criminals have devised a new complex system to move their funds.
This scam uncovered is said to have lasted four years already, and British and European law enforcement investigators claim that it’s been shut down since May 2014, following a clampdown on the judicial component of the fraud chain – in the former Soviet republic of Moldova.
Yes, this is a scandal of sorts, but how big is it really? Investigators claim over 20 billion has been laundered in this way, but as we will show you – it’s only a drop in the global crime bucket.
What’s more interesting, however, is where the money finally ends up – in the major banks:
‘The UK bank accounts involved include ones at UBS in London, HSBC, RBS, NatWest and Citibank. The Independent is passing details of the transactions to the banks.’
Let’s just put this into perspective in relation to some of the world’s largest and ‘most respected banks’ who all seem to be engaged in the macro-money laundering of arms, narcotics, and human trafficking. Take for example, HSBC, a major clearing house for dirty money worldwide.

This post was published at 21st Century Wire on OCTOBER 21, 2014.

Gold & Silver Show Mixed Signals While Bitcoin Shows Relative Strength

Uncertainty is in the air as Europe continues to head towards a recession, the IMF cuts global growth projections and the Federal Reserve expresses concern about these global conditions slowing its interest rate tightening agenda even though indicators are showing forward progress. Gold and bitcoin had a positive week while silver declined slightly, and the correlation between bitcoin and gold has started to weaken.
Macroeconomic Snapshot Jobless Claims: This indicator made moves this week. Claims declined 23,000 to a total of 264,000 jobless claims, the lowest amount since April 2000. These numbers further indicate that the US economy continues to recover and create new jobs.
Housing Starts: New construction of homes progressed upward. After a drop of 12.8% in August, starts are up 6.3% for September. Multi-family home construction led the rise with a 16.7% growth, while single-family home construction brought down the average with only 1.1% growth. This data suggests that Americans are willing to invest in building new homes, something that will increase demand for construction related goods and services, boosting the economy.
Retail Sales: Sales figures disappointed this week as they fell a third of percent from last month, to a total spending of $442.7B. However, a longer term view shows that retail sales is 4.3% ahead of September 2013. An observation from this data is that food services and drinking places gained 0.6%: This is a discretionary spending area and suggests United States consumers are spending..
On Wednesday, October 22nd the consumer price index, or inflation, data will be released. This metric may further help to confirm insights into the growth narrative of the American economy and may guide the Fed’s tightening schedule.
The state of the Eurozone and the global economy should be monitored by smart investors because Federal Reserve Vice Chairman Stanley Fischer in a speech last week commented:

This post was published at GoldSilverWorlds on October 21, 2014.

What Rout? Stocks Have Best Day In A Year

Since 13 minutes after the US equity market opened, the NYSE was broken for 150 symbols from AAPL to XIV (inverse VIX). KO, MCD, & IBM all fell notably on earnings. Credit, Treasuries, and JPY carry all traded ‘risk-off’. But none of that mattered…broken markets and ECB rumors were all that was needed – Nasdaq soared by most in 2014 today, extending its 3-day swing to the best since Dec 2011. Despite USDollar strength (driven by EUR weakness), commodities all rallied with Copper and oil best (WTI >$83 again) but volatility in crude was significant. Treasury yields were mixed (flat to 5Y, 2-3bps 10Y & 30Y). VIX was smashed briefly to a 15 handle (down over 50% from its peak last week). Trannies are up almost 8% from Bullard’s “QE4″ comment last week… normal? Volume was dismally below average.

This post was published at Zero Hedge on 10/21/2014.

SP 500 and NDX Futures Daily Charts – Draghi Racing To Da Moon

Another central bank rumour managed to light a fire under stocks, and the hedge funds ran with it.
The rumour this morning, following on Bullard’s statement on possibly continuing QE, was that Mario Draghi’s European Central Bank might start buying corporate debt as soon as December of this year.
And there they go!
Existing home sales came in a little better than expected, but pointing to that as some sort of fundamental trigger for this is nonsensical. The underlying fundamentals of US housing are overall weak.
But the hedge funds are anxious to make up for this years losses, and they are piling on to this market that had become deeply oversold, triggering a short squeeze V bottom.
The question is how long can they take it up, and what will they do when they reach that point, look around and see no other buyers, and say to each other, ‘What do we do next?’

This post was published at Jesses Crossroads Cafe on 21 OCTOBER 2014.

Gold Seeker Closing Report: Gold and Silver Gain With Stocks

The Metals:
Gold climbed $7.37 to $1253.47 in Asia before it fell back towards unchanged in London, but it then rose to a new session high of $1255.02 in early New York trade and ended with a gain of 0.18%. Silver rose to as high as $17.65 and ended with a gain of 0.4%.
Euro gold rose to about 982, platinum gained $11 to $1274, and copper climbed 5 cents to about $3.03.
Gold and silver equities rose about 2% at the open, but they then drifted back lower for most of the rest of trade and ended mixed.

This post was published at GoldSeek on 21 October 2014.

Subprime Bubble Pop 2.0? Department Of Financial Services Slams America’s Largest Subprime Servicer

Once upon a time, in the distant 2005 and 2006, the world just couldn’t get enough of such subprime mortgage superstars as New Century Financial. In fact, some may have forgotten, but none other than David Einhorn was a director of New Century until March 2007, when suddenly everything fell apart and a few weeks later the company was bankrupt. The subprime collapse that followed, which contrary to Ben Bernanke’s promises was “not contained”, is what according to most catalyzed the plunge of the US economy into the greatest depression since 1929, led to the default of Lehman Brothers and nearly ended the financial system.
Fast forward to 2014, when the US has a new subprime servicing superstar, which just like in 2006, also happens to be a hedge fund darling. The company: Ocwen Financial (a name which originated when some drunk banker or executive spelled Newco in reverse) which currently is responsible for servicing over $106 billion in subprime mortgages. A darling so prominent among the hedge fund community, it was one of the most beloved hedge fund hotel stocks in late 2012 and 2013, and judging by its current list of holders, still has a plethora of who-is-who hedge and mutual fund holders.

This post was published at Zero Hedge on 10/21/2014.