A Storm of Global Events Is Threatening to Push Gold and Silver to Record Highs

Earlier this week, Mac Slavo reported on an interview conducted with the CEO of Future Majestic Silver Corp, Kieth Neumeyer. In it, Mr. Neumeyer proposed a brilliant way to put an end to the blatant manipulation of the gold and silver market. If all of the mining companies in the world agreed to halt production for a single 30 day period, it would ‘send ripples throughout the entire system’.
It would show the phony paper market who’s really in charge. With the price of 800 million ounces of physical silver being controlled by 1 billion ounces of paper stocks, a challenge like this could make stock prices tumble while the price of real silver goes through the roof. He suggested that they agree upon a month sometime in 2015. I’d be willing to bet that the anticipation of that event, would make silver prices go ballistic long before that month arrives.
Of course, even if Mr. Neumeyer doesn’t have his way, there’s a long list of events on the horizon that could push gold and silver back into the spotlight. There’s so many factors that are converging at once, that if only a few them come to fruition, we can expect gold and silver to be making some serious gains by the end of this year.
Another challenge to metals market may be coming down the pike by the end of this month. In Switzerland, a referendum is being planned for November 30th, that could bring about the first gold backed currency in decades. Currently, polls show that support for the bill has a very narrow lead, so we’ll see what happens in the next few weeks. If it passes, Switzerland will hold 20 percent of it’s reserves in gold, demand the return of all its gold being held overseas, and will cease selling gold to the rest of the world.

This post was published at The Daily Sheeple on October 26th, 2014.

28/10/2014: Page 75… ECB Washes Out Its Big Bazooka QE with New NPLs…

In the previous (lengthy) post I covered my view of the ECB stress tests results. But, per chance, you have missed two core points on these, here they are, in a neater summary:
Point 1: Stress tests are weak compared to expectations and independent analysts’ estimates of capital shortfall (by a factor of up to or in excess of10:1).
Point 2: Stress tests have raised non-performing loans levels in the euro area banking system by EUR136 billion to EUR879.1 billion or close to 9% of the euro area GDP. The increases were recorded in all categories of loans, which in simple terms means the banks have been under-providing for loans losses across all categories of their core assets.

This post was published at True Economics on October 27, 2014.

Gold And Silver – Respect The Trend But Prepare For A Reversal

When events ‘happen,’ they happen in a directed way by the elite’s mainstream media outlets. News is presented in a way that is designed to appeal to mass emotions so as to discount reasoned thinking. You get government pimps, be they congressmen, heads of agencies, even presidents who add their fiat 2 cents in order to give some weight to an otherwise weightless argument. While the ‘news event’ is largely untrue, there is a sufficient amount of plausibility added to disguise the misleading [never verified] facts. In other words, psychological manipulation is the main menu of options for the elites to keep the masses ‘informed,’ while still very much uninformed.
As to gold and silver, there are two sides to the coin, as it were. One is well-covered, in fact overly covered, while the other receives coverage but with elite-imposed limitations.
One of the most basic truths in determining the value of anything is that of supply and demand: the availability of a particular product or service [supply], and the desirability [demand] for the product/service. It is an axiomatic rule that cannot be broken, but it can be distorted, as in the case for gold. The distortion via central bank manipulation has been so pervasive over such a long period of time, well over a half-century, that it has become perverse.
Supply for the physical has been replaced by paper. Demand for the physical has been replaced by [fiat and news]paper. Ever since elite-puppet FDR issued his Executive Order that all ‘persons’ turn in their gold [the ‘news’ portion], gold was replaced by the foreign- owned Federal Reserve central bank paper issue [the fiat portion], and demand was made to disappear from the minds of the [dis]informed public and world. Who needs gold when you can have the ‘almighty dollar?’
Gold coin, when in circulation, represented the greatest stability for medium of exchange conditions. As the duped American public turned in their gold coins, back in the 1930s, [decreasing one area of demand], the coins were melted down into larger bar form, never to return into circulation [supply]. The US was a country where a central bank did not previously exist. Once the privately owned Federal Reserve central banking system was ‘installed’ by corrupt means in 1913, in just 30 years it had successfully withdrawn the use of gold as a means of measured wealth and replaced it with the Rothschild House of Paper. America has never been the same, since.
Financial stability disappeared, and financial dependence on a de facto federal fiat system began in earnest. Yet, if you were to take a poll in the federalized US today, almost none would make any link between the disappearance of gold and the Federal Reserve central bank. This is how successfully the elites work over a protracted period of time, changing the nature and character of things through words, using apparent authority, as in the entire US government, without ever exposing their ‘hidden hand’ directing everything.

This post was published at Edge Trader Plus on October 25, 2014.

How Will The Stock Market React To The End Of Quantitative Easing?

It is widely expected that the Federal Reserve is going to announce the end of quantitative easing this week. Will this represent a major turning point for the stock market? As you will see below, since 2008 stocks have risen dramatically throughout every stage of quantitative easing. But when the various phases of quantitative easing have ended, stocks have always responded by declining substantially. The only thing that caused stocks to eventually start rising again was a new round of quantitative easing. So what will happen this time? That is a very good question. What we do know is that the the performance of the stock market has become completely divorced from economic reality, and in recent weeks there have been signs of market turmoil that we have not seen in years. Could the end of quantitative easing be the thing that finally pushes the financial markets over the edge?
After all this time, many Americans still don’t understand what quantitative easing actually is. Since the end of 2008, the Federal Reserve has injected approximately 3.5 trillion dollars into the financial system. Of course the Federal Reserve didn’t actually have 3.5 trillion dollars. The Fed created all of this money out of thin air and used it to buy government bonds and mortgage-backed securities.

This post was published at The Economic Collapse Blog on October 26th, 2014.

Functional Economics – Getting Your House in Order

Old Habits Reappear Fighting the Fear of Fear Growing Conspiracy Myself Is after Me Frayed Ends of Sanity Hear Them Calling Frayed Ends of Sanity Hear Them Calling Hear Them Calling Me – Frayed Ends of Sanity, Metallica
Many of you have are aware of the incredibly fragility in the world financial system. Most have seen it coming for some time. Many of you saw it all coming before the great crisis of 2007-2008. Some of you saw it before the “Dotcom” crash. Perhaps a few of you saw it all before the Savings and Loan crisis.
Very few remember the Penn Railroad bailout, and the lead-up to the end of Breton Woods. And yet, with in each cycle, we have yet to see a scorched earth clearing. An actual deflation leading to the end of the dollar.
The year 1971 was an important turning point but served, ultimately, as only the culmination of a long battle between banks and politicians. In the end, it was a banking play to free up any dollarization of the international banking space.
From the rebuilding of Europe to the development of resources in South America and elsewhere, this was the major windfall for the giant banks. Penn Station was the original post World War II prologue to 2008.
The Dotcom crisis was averted by lower rates. Blame was placed at the altar of the ludicrous no-revenue start ups. The Lehman crisis left us with the emergency measures in place to this day in the form of zero interest rates (ZIRP) and quantitative easing.

This post was published at Silver-Coin-Investor on Oct 26, 2014.

Is Bitcoin a State-Caused Currency?

When money doesn’t develop as a commodity, it gives one pause to wonder why. Is it real money? Is it viable in a free market? How did it come into existence if it didn’t develop as a good with uses other than money? Today we observe persistent thievery of goods (e.g. land, cars, gold, and silver) by the state. Individuals are often on the lookout for mechanisms that reduce the chance that their property will be forcefully appropriated. The possible reduction of state theft risk is one of the main selling points of Bitcoin.
Money has historically been a tangible good that was desired by people on its own merits as a good. Salt had uses and could be traded and divided and lasts longer than a chicken. Eventually, the link to a good was lost as pieces of paper with no connection to anything prevailed when the state had its way – via legal tender laws – at concocting new and improved methods of theft via inflation and banking cronyism. But, paper is still tangible and is seized frequently as well.
In the 1990s, I remember seeing little deed certificates for micro-acres of ranch land that could be traded like money. That concept seems like it might be a workable idea for money if you don’t consider the state factor. What if the state doesn’t like the idea of mini paper titles to ownership of micro-acres of a large Texas ranch? The state can steal the whole ranch. Or, the state can add a new confiscatory tax to the land that varies vastly from the original agricultural tax scheme thereby reducing the exchange value of the asset-connected paper deeds. The state can proclaim the whole idea to be a money-laundering operation. The state can see the link to something tangible and seize all the assets pertaining to the persons who implemented the idea as was done with the Liberty Dollar which had a connection to real precious metals redeemable on demand.
Those real acres can be confiscated by the state just as gold and silver are; just as ‘real’ paper and virtual fractional reserve computer digits can and are confiscated by the state.
So, if Bitcoin didn’t follow the normal route for money origination as a good in the market, why did it develop and can it survive in a free market?
The principle marketed features of Bitcoin are its limited supply and its resistance to state predation when being held and transferred. The limited supply is a mathematical reality. That, plus the hoped-for resistance to state thievery supposedly overcome the fact that it didn’t originate as a good on the market. It has no link to something real that can be taxed, seized, or plundered. But does this benefit really overcome its non-good status?

This post was published at Lew Rockwell on October 25, 2014.

How China & Gold Will Shape The Future

Willem Middlekoop, author of The Big Reset – The War On Gold And The Financial Endgame, believes the current international monetary system has entered its last term and is up for a reset. Having predicted the collapse of the real estate market in 2006, (while Ben Bernanke didn’t), Middlekoop asks (rhetorically) – can the global credit expansion ‘experiment’ from 2002 – 2008, which Bernanke completely underestimated, be compared to the global QE ‘experiment’ from 2008 – present? – the answer is worrisome. In the following presentation he shares his thoughts on the future of the global monetary system; and how gold, the US and China are paramount for its outcome.
Middlekoop predicts the real estate crash in 2006… (ensure English Subtitles – Closed Captions – are enabled)

This post was published at Zero Hedge on 10/26/2014.

The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt

As we previously reported, the ECB’s latest stress test was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, “adverse” scenario, the ECB simply refused to contemplate the possibility of deflation. And here’s why. Buried deep in the report, on page 75 of 178, is the following revelation which contains in it the scariest number presented to the public today.
Due to the fact that on average banks’ internal definitions were less conservative than the simplified EBA approach, the application of the simplified approach led to an increase in NPE stock of 54.6 billion from 743.1 billion to 797.7 billion. The CFR and the projection of findings led to an additional increase in NPE of 81.3 billion, resulting in a total increase 135.9 billion to 879.1 billion of post-CFR NPEs across the participating banks as a result of the AQR. The impact of the application of the EBA simplified approach and the credit file review on the stock of NPEs varied amongst debtor geographies, with overall increases among SSM debtor geographies ranging from 7% to 116%.

This post was published at Zero Hedge on 10/26/2014.

Federal Reserve to Markets: You’re Too Easy!

As the end of the latest quantitative easing program approached, everyone was wondering if history would repeat in the form of a stock market correction that terrified the government into another round of debt monetization. And right on cue, volatility surged in late September, sending US stocks down by about 6% by mid-October.
And even that tepid bit of excitement was enough to send the Fed’s spinners into action:
James Bullard: Fed Should Consider Delaying The End Of QE James Bullard, President of the St. Louis Federal Reserve Bank, told Bloomberg Television’s economics editor Michael McKee today that the Fed should consider delaying the end of QE.
Bullard said, ‘I also think that inflation expectations are dropping in the U. S. And that is something that a central bank cannot abide. We have to make sure that inflation and inflation expectations remain near our target. And for that reason I think a reasonable response of the Fed in this situation would be to invoke the clause on the taper that said that the taper was data dependent. And we could go on pause on the taper at this juncture and wait until we see how the data shakes out into December. So…continue with QE at a very low level as we have it right now. And then assess our options going forward.’

This post was published at DollarCollapse on October 26, 2014.

Dilma Rousseff Re-elected As Brazil President

In what is sure to be a major risk-off move for the Bovespa, and Latin American risk in general, moments ago the newswires blasted that in what was expected to be a very closely contested election, incumbent President Dilma Rousseff has 50.99% of valid votes vs 49.01% for challenger Aecio Neves with 95% of ballots counted, according to Brazil electoral court website.
And while the TSE hasn’t yet declared a winner, Folha newspaper just blasted Rouseff as Brazil’s re-elected leader.

This post was published at Zero Hedge on 10/26/2014.

26/10/2014: Mind the ECB ‘Stress Tests’ Gap

The pain of European economy’s Japanification is going to be proportionate to the cheering of the ECB ‘stress tests’ results.
The real problem faced by European economy is that of the depressed domestic demand (investment and consumption). This problem is fuelled by: 1) declining real incomes of those working, 2) continued sky-high numbers of those who are not working (unemployed, discouraged and never-once-employed workers left out in the cold), 3) growing unease amongst older workers about the state of their pensions, 4) rising burden of the state (including state debts), 5) growing pressure of redistribution of income from households and SMEs to politically favoured white elephant projects (e.g. renewables subsidies, large infrastructure spending, farm supports, regional integration etc), 6) un-abating waste at the EU and national levels anchored to corporatist politics selectively rewarding specific interest groups interests at the expense of entrepreneurs, younger workers, ordinary households and domestic firms, and 7) demographic collapse spreading across the continent as populations age and children remain dependent on ever older parents to support their education and transitioning into joblessness.
This real problem is driving down domestic demand, and with it depressing economy, but also spreading rot across the banks balance sheets.
And yet, despite the obvious and ever-deepening macroeconomic crisis of depressed demand, the ECB stress tests released today provide no insight into what can happen to the banks balance sheets should Japanification set in. Worse, the entire exercise of ‘stress tests’ is once again not much more than a PR stunt dreamed up by the folks who are ‘would be’ chief economists for the sell-side equity research.

This post was published at True Economics on Sunday, October 26, 2014.

“They Just Want The Money!” The IRS Can Now Seize Accounts On Suspicion Alone

‘How can this happen?’ Ms. Hinders said in a recent interview. ‘Who takes your money before they prove that you’ve done anything wrong with it?’
The federal government does.
* * *
The topic of civil asset forfeiture has been high on our agenda recently as federal ‘agents’ discover how to steal Americans’ hard-earned cash with zero repurcussions , and decide unilaterally how much cash a ‘common man’ is allowed to carry; but as The NY Times reports, the escalation to The IRS brings a whole new world of possibilities with regard asset confiscation based on no actual crime being proved…
As The NY Times reports,
For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away – until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000. The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes – in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.
Her money was seized under an increasingly controversial area of law known as civil asset forfeiture, which allows law enforcement agents to take property they suspect of being tied to crime even if no criminal charges are filed. Law enforcement agencies get to keep a share of whatever is forfeited.

This post was published at Zero Hedge on 10/26/2014.

Watch: Billionaire Investor: ‘The Best Opportunities Of Any Bear Market I Have Ever Seen’

Over the last three years, as stock markets have risen to new all time highs, other asset classes have been absolutely pummeled. Precious metals investments, for example, have in some cases seen declines of up to 75%.
In this candid interview billionaire investment guru and founder of Sprott Asset Management’s Global Companies Rick Rule shares his analysis and insights on a variety of key topics including his outlook on precious metals, passive investing, spotting opportunities, and his views on one of the most important things parents can teach their kids about growing up in a world where the government’s sole purpose is to create masses of indentured servants.
Where the majority of people may see difficulty and hardship, those with a mindset similar to Rick Rule’s see opportunities that can be used to effectively build wealth and achieve independence from a corrupt system.
Whether your investments currently include physical assets like silver or gold, or you’re looking to diversify your portfolio into companies with solid management teams and dividends, this is an absolutely amazing peek into the mind of one of the most successful investors and contrarian thinkers in the world.
This is one you don’t want to miss. It’s the best interview you’ll ever see on the subject.

This post was published at shtfplan on October 26th, 2014.

The Chart That Crushes All Credibility Of The ECB’s Latest Stress Test

While we would be the last to comment on the ECB’s laughable forecasting capabilities, we do have to note that there is a bit of a disconnect between the ECB’s projections of Eurozone inflation for 2014, 2015 and 2016 as presented in its March, June and September meetings…

… and what the market is currently anticipating based on 5Y5Y forwards which as we noted two weeks ago, recently hit an all time low.

This post was published at Zero Hedge on 10/26/2014.

What Do Seven Billion People Do? Top 10 Mega-Cities by Population 2014 vs. 2030 Estimate

Reader Bran who lives in Spain sent some interesting charts of population, expected population growth, the world’s largest cites, and what people do for a living. I don’t have links for the charts, but most show the origin.
Seven Billion People

4.30 Billion Work 1.90 Billion too Young to Work 0.43 Billion Unemployed 0.58 Billion 65 or Older

This post was published at Global Economic Analysis on Sunday, October 26, 2014.