Scotland Independence Risk Sees British Pound Dive

Scotland Independence Risk Sees British Pound Dive
Mel Gibson in Braveheart
Sterling fell sharply yesterday as traders became nervous of a possible vote for Scottish independence. The referendum on Scottish independence from the United Kingdom takes place on Thursday 18th September.
While the referendum and the potential impact of an independent Scotland have been on the horizon for some time, the approaching vote in two weeks is causing upheaval for the British pound in currency markets, and also more general macro uncertainty in the regional economic and monetary system.

This post was published at Gold Core on 3 September 2014.

Bill Holter-US Broke-Crash Mathematical Certainty

The following video was published by Greg Hunter on Sep 2, 2014
Bill Holter of MilesFranklin.com says a crash of the financial system is on the way. Holter says, ‘I believe that many things that are real will be revalued many multiples higher. Silver and gold I see being revalued eight to ten times higher or more if we have a closure of the banking system and the stock market, a reset so to speak . . . How likely is a crash in the financial system? Holter thinks, ‘From a probability standpoint, whether it’s tomorrow morning or next week, or next month, or next year, mathematically, ask yourself this question: Is the U. S. broke? The answer is yes, the U. S. is broke. There is no way the U. S. can pay the promises, the interest and etcetera on everything that is out there. I’ve seen a number of $240 trillion in total promises and debt. There is no way that can be paid. So, from a mathematical standpoint, sooner or later, there is going to be an all-out collapse. That is a mathematical equation. It is no longer if, it is only a question of when.’

Indian physical demand seen high

Indian gold imports and premiums are likely to surge during the rest of the year as buying picks up for the wedding and festival season, the head of the country’s biggest gold refiner said on Tuesday.
Premiums could jump to $10-$12 an ounce over the global benchmark from the current levels of $4-$5, said MMTC-PAMP Managing Director Rajesh Khosla.
Imports could climb to 60-70 tonnes per month for the rest of the year from about 40 tonnes in July, Khosla said, adding that August imports were probably around 63 tonnes.
India has not yet released its trade figures for August.

This post was published at TruthinGold on September 2, 2014.

Central Bank Monetary Policy Enables Us to Put Off Real Reforms

This cycle of entrenched interests protecting their skims and scams via central bank monetary policy is self-liquidating.
I finally figured out that the core purpose of central banks’ monetary policy is to enable vested interests to avoid desperately needed reforms in the real economy. This might have been blindingly obvious to others, but I finally caught on to the dismaying reality: the only purpose of central bank monetary policy is to keep the bloated, corrupt, inefficient and self-liquidating vested interests of the state-cartel crony capitalism from having to suffer the consequences of real reforms.
Japan ably serves as Exhibit #1 of this core dynamic. The broad narrative in Japan is a template for state-cartel crony capitalism everywhere: after World War II, the system of state-managed cartels was re-instated with modest structural changes. The Central State and bank enabled the expansion of export-sector cartels–an expansion that followed the classic S-Curve of expansion, maturity and stagnation with great precision:

This post was published at Charles Hugh Smith on TUESDAY, SEPTEMBER 02, 2014.

Gold subdued

The yellow metal price in global market eased on back of correction in international inventories besides dull interest of international and domestic buyers. It closed at $1,264 an ounce with $23 per ounce down in value as compared to previous trading session while domestic bullion price also witnessed correction. Gold in tola term down by Rs 949 per tola to stay at Rs 48,403 per tola while in grammage value, gold dipped by Rs 815 per ten grams to close at Rs 41,541 per ten grams respectively on Tuesday, dealers said.
The gold price remained in correction phase, as leading traders in international and domestic markets were eyeing on future output however potential buyers in India and Pakistan remained busy in hedging.

This post was published at TruthinGold on September 3, 2014.

‘Hoarding Money’ – A New Meme?

Fed: US consumers have decided to ‘hoard money’ … One of the great mysteries of the post-financial crisis world is why the U. S. has lacked inflation despite all the money being pumped into the economy. The St. Louis Federal Reserve thinks it has the answer: A paper the central bank branch published this week blames the low level of money movement in large part on consumers and their “willingness to hoard money.” – CNBC
Dominant Social Theme: This money hoarding has got to stop for the economy to get better.
Free-Market Analysis: Sometimes Federal Reserve white papers attract attention and this one does because of the term “hoarding money.” This is a startling phrase and – who knows – perhaps it marks the beginning of a new meme.
Certainly the word “hoarding” is a popular one with government officials. When governments are uncomfortable with the actions of citizens for whatever reason, the term “hoarding” is often applied to stigmatize certain behaviors and encourage others.
In this case, the authors of this paper don’t seem to have in mind stigmatization so much as explaining the phenomenon they are analyzing and suggesting ways monetary policy can alleviate the behavior.
Here’s more:
The paper also cites the Fed‘s own policies as a reason for consumers’ unwillingness to spend. Though American consumers might dispute the notion that inflation has been low, the indicators the Fed follows show it to be running well below the target rate of 2 percent that would have to come before interest rates would get pushed higher.
That has happened despite nearly six years of a zero interest rate policy and as the Fed has pushed its balance sheet to nearly $4.5 trillion. Much of that liquidity, however, has sat fallow. Banks have put away close to $2.8 trillion in reserves, and households are sitting on $2.15 trillion in savings – about a 50 percent increase over the past five years.

This post was published at The Daily Bell on September 03, 2014.

Gold Holds Long-Term Bearish Technical Pattern

This is an excerpt from the daily StockCharts.com newsletter to premium subscribers, which offers daily a detailed market analysis (recommended service).
Spot Gold fell to around 1270 on Monday and extended the decline that began in early July. Before looking at the medium-term picture, let’s review the weekly chart for a long-term perspective. The first chart shows gold peaking around 1900 in September 2011 and quickly falling to the 1550 area. The metal then embarked on a long consolidation and broke support with a sharp decline in April 2013. Gold then moved into another consolidation that looks like a descending triangle, which is a bearish continuation pattern.

This post was published at GoldSilverWorlds on September 2, 2014.

Did US Macro Just Jump The Shark?

For the past five years there has been a very clear and significant cycle to US macro data – a slight rise to start the year, notable weakness into the middle of the year, a rapid recovery into the fall, then generally flat to year-end. A year ago, we explained this cycle appears to be created by government agencies need to spend, spend, spend their budgets out ahead of fiscal year-end (Sept).

This post was published at Zero Hedge on 09/02/2014.

The 60 Day Countdown Begins, Will This Lead To The False Flag Event? – Episode 457

The following video was published by X22Report on Sep 2, 2014
The manufacturing around the world starts to decline, meanwhile the US manufacturing is improving. Gold has been pushed down once again to give the illusion that the dollar and economy are strong. US Senator wants to take passports away from US fighters who fight in Syria. Ebola is hurting the economies of West Africa and pushing food prices higher. NATO soldiers reported fighting in Ukraine. Libya tribes have now taken over government buildings. Obama notifies congress of strikes in Armeli Iraq, this gives Obama 60 days to use military assets in the region. Afterwards he will need approval from congress, this time frame brings us to Oct-Nov. Islamic State has reportedly beheaded Sotloff in a new video. This is just another event to push the main event.

Precious Metals And Internationalization Are The Antidote To The Keynesian Endgame

When looking at today’s economic situation, it is amazing how the debt situation remains underexposed. It is truly the ‘elephant in the room’. In this article we will review the most recent economic data and what that data could mean for the coming years.
When asked about his view on the economic situation, Claudio Grass, managing director of Global Gold, answered with this quote from German economist Wilhelm Rpke:
‘The theories men construct, and the words in which they are framed, often influence their mind more strongly than the facts presented by reality’.
This sentence nicely describes today’s mindset amongst most people in the Western word since we are raised in amounts to a government-controlled educational system! We are not taught to question [authority]. The problem is that the actual system we live in focuses only on the effects but never discloses the underlying causes, let alone tries to connect the dots. This research needs to be taken upon by the individual. However, research requires a healthy portion of curiosity and bravery, as well as independence and self-confidence to stand up for one’s own opinion, which will be in contrast to the story we are told by governments and the mainstream media.
Linking this view to today’s economy, it goes without saying that anyone with a basic level of curiosity can find the following data:
The U. S. currently has total debts outstanding (incl. unfunded liabilites) which are close to 900% of its GDP. America hasn’t passed a budget since April of 2009. As a country, the U. S. has had a budget deficit in 42 out of the last 47 years. The U. S. has paid 14.8% of its yearly revenue to servicing its debt (interest payments).

This post was published at GoldSilverWorlds on September 2, 2014.

sept 2/raid on gold and silver/GLD loses another 1.8 tonnes of inventory gold/no change in silver/ Conditions inside Pakistan heating up/Escalation in the Ukraine vs Russia/Ebola spread/

Gold closed down $22.10 at $1263.70 (comex to comex closing time ). Silver was down 33 cents at $19.07
In the access market tonight at 5:15 pm
gold: $1265.00
silver: $19.19
GLD : a loss of .1.8 tonnes of gold (inventory now at 793.20 tonnes)
SLV : no change in silver inventory at the SLV/now 331.528 million oz
Every time we have a long weekend, the banksters whack gold and silver. They did not disappoint us again with their antics.
The game will end once China/Russia can no longer receive any physical gold and silver from the West.
Today we have commentaries concerning the Ukraine, Russia, Pakistan, China, Japan and the terror of ISIS and Ebola.
We will discuss these and other stories
So without further ado………………
Let’s head immediately to see the data has in store for us today.
First: GOFO rates/
All months basically moved slightly towards the negative needle. Again, they must have found some gold to lease..
London good delivery bars are still quite scarce.
Sept 2 2014
1 Month Rate: 2 Month Rate 3 Month Rate 6 month rate 1 yr rate
.082000% .1000000% .11800% .14600% .220000%
August 29.2014:
1 Month Rate 2 Month Rate 3 Month Rate 6 month Rate 1 yr rate
08800% .102000% .12000% .1500% .228000%
end
Let us now head over to the comex and assess trading over there today,

This post was published at Harvey Organ on September 2, 2014.

Consumer Spending in August Drops below a Year Ago – Gallup

Consumer spending, the key to the American economy, and by extension the global economy, is one of the most watched activities in the world, but results may vary, as they say, depending on who is doing the counting and what they’re counting.
The Gallup Daily tracking survey is one of those measures. The poll, based on telephone interviews of over 15,000 adults aged 18 and older each month, asks consumers the total amount they spent ‘yesterday,’ not counting normal monthly bills and the purchase of a home or a vehicle. It’s Gallup’s measure of discretionary spending. And the results for August weren’t exactly what everyone had hoped for.
American consumers reported spending on average $94 per day in August. That was flat from July, though in the prior two years, there had been a marked increase from July to August. And it was down from $95 a day in August 2013.
During the Great Recession, Gallup’s measure of consumer spending hit lows between $60 and $70 a day, but since then, spending picked up with fairly consistent year-over-year gains. In May this year, spending hit $98 per day, a new post-crisis record (before the crisis, consumers averaged above $100 per day!).

This post was published at Wolf Street on September 2, 2014.

The One Thing The Bank Of Japan Apparently Can’t Print More Of

First it was socialist utopia Venezuela and now Keynesian-economics favorite playground Japan is concerned about a troubling problem – fear of a toilet-paper shortage. As WSJ reports, the Ministry of Economy, Trade and Industry is encouraging families to stockpile at least one month’s worth of toilet paper in the event of a major disaster, as they “fear there would be a serious shortage of toilet paper nationally.” Ironic really, given Shinzo Abe’s past ‘problems’.
As WSJ reports, the government is using the day to advise families to stock up on toilet paper.

This post was published at Zero Hedge on 09/02/2014.

The Seven Year Cycle Of Economic Crashes That Everyone Is Talking About

Large numbers of people believe that an economic crash is coming next year based on a seven year cycle of economic crashes that goes all the way back to the Great Depression. What I am about to share with you is very controversial. Some of you will love it, and some of you will think that it is utter rubbish. I will just present this information and let you decide for yourself what you want to think about it. In my previous article entitled “If Economic Cycle Theorists Are Correct, 2015 To 2020 Will Be Pure Hell For The United States“, I discussed many of the economic cycle theories that all seem to agree that we are on the verge of a major economic downturn in this country. But there is an economic cycle that I did not mention in that article that a lot of people are talking about right now. And if this cycle holds up once again in 2015, it will be really bad news for the U. S. economy.
Looking back, the most recent financial crisis that we experienced was back in 2008. Lehman Brothers collapsed, the stock market crashed and we were plunged into the worst recession that we have experienced as a nation since the Great Depression. You can see what happened to the Dow Jones Industrial Average on the chart that I have posted below…

This post was published at The Economic Collapse Blog on September 2nd, 2014.

The Strong ‘Buy’ Signal In The Metals/Miners Got Stronger Today

One of the rules by which the elite aristocrats abide is they consider it rude to not issue a warning before they do something bad to us. They’re like criminals with manners. In other words, it’s gauche to flush the toilet while the serfs are in the shower without giving us a ‘heads up.’ – John Titus, engineer and attorney
What worries me the most in the midst of all of this geopolitical chaos going on right now is the message in this article written by Henry Kissinger and published by the Wall Street Journal: Henry Kissinger On The Assembly Of The New World Order.
The title alone in conjunction with the man writing it should be enough to frighten everyone into moving as much as they can OUT of the system and into precious metals. Kissinger must be seriously insane with the quest for complete global power to be consolidated into the hands of a few U. S. corporate and military complex elitists.
The foundation of his argument is based on the two assertions of ‘fact’ he makes which are probably the biggest lies ever told in the history of organized civilization:

This post was published at Investment Research Dynamics on September 2, 2014.

30 Million Americans On Antidepressants And 21 Other Facts About America’s Endless Pharmaceutical Nightmare

Has there ever been a nation more hooked on drugs than the United States? And I am not just talking about illegal drugs – the truth is that the number of Americans addicted to legal drugs is far greater than the number of Americans addicted to illegal drugs. As you will read about below, more than 30 million Americans are currently on antidepressants and doctors in the U. S. wrote more than 250 million prescriptions for painkillers last year. Sadly, most people got hooked on these drugs very innocently. They trusted that their doctors would never prescribe something for them that would be harmful, and they trusted that the federal government would never approve any drugs that were not safe. And once the drug companies get you hooked, they often have you for life. You see, the reality of the matter is that some of these ‘legal drugs’ are actually some of the most addictive substances on the entire planet. And when they start raising the prices on those drugs, there isn’t much that the addicts can do about it. It is a brutally efficient business model, and the pharmaceutical industry guards their territory fiercely. Very powerful people will often do some really crazy things when there are hundreds of billions of dollars at stake. The following are 22 facts about America’s endless pharmaceutical nightmare that everyone should know…

This post was published at End Of The American Dream on September 2nd, 2014.

Gold Seeker Closing Report: Gold and Silver Fall Nearly 2%

The Metals:
Gold dropped $24.54 to as low as $1262.76 by midmorning in New York before it bounced back higher at times, but it still ended with a loss of 1.72%. Silver slipped to as low as $19.093 and ended with a loss of 1.64%.
Euro gold fell to about 964, platinum lost $13 to $1406, and copper remained at about $3.15.
Gold and silver equities fell about 3% by late morning and remained near that level into the close.

This post was published at GoldSeek on 2 September 2014.

Gold Daily and Silver Weekly Charts – Cap, Cap, Pounce

Welcome to September. Ouch. The spotlight is now on silver, and less so on gold. Both metals took a hit that was fairly obvious starting late last night. I was surprised it did not go deeper. It is tough to make a real short term bullish case until we break this pattern of lower highs and lower lows. Big amount of silver get shoved around the plate at the Comex, so we will have to shift gears a bit and adjust to reports with much bigger numbers of ounces involved. Today was the first day. Let’s see how the rest of the month goes.

This post was published at Jesses Crossroads Cafe on 02 SEPTEMBER 2014.

China Will Revise Its GDP Definition Until Its Hits Government “Growth Targets”, Goldman Explains

Previously we have commented that when all it takes for a country to “hit” its GDP target, is to adjust said definition by adding the benefit of estimated ancillary items as prostitution and drugs, GDP loses all relevancy and meaning in its transformation to an arbitrary, goalseeked policy measurement and validation tool straight out of China’s Department of Truth. After all how else would the Spanish political kleptocracy boast the “favorable” impact of its disastrous policies if it wasn’t for a slew of recent definitional revisions. And yet, all throughout our commentary we were doing so tongue-in-cheek: after all, it is taboo for the very serious economists to discuss the hilarious systemic failures that allow their most prized indicator of “growth” to become a mockery of fringe tinfoil blogs.
At least, it was taboo until now, because moments ago, in an example of “very serious phrasing”, none other than the bank that does god’s work on earth (especially when it means providing off balance sheet financing for the bank of the Holy Spirit), just reported that the reason why China will hit its growth target is because of, drumroll, its fudged GDP. Only Goldman is far more serious when it says all of this, with the result being just too hilarious for words: to wit: “In the coming months, China’s National Bureau of Statistics is to make adjustments to the methodology used to calculate GDP. These adjustments are likely to boost real GDP growth by 0.1-0.2pp, thereby making it easier for the government to reach its goal of ‘around 7.5%’ GDP growth in 2014.“
But wait there’s more, because the biggest adjusted “contributor” to China’s economy will be the retroactive benefit from R&D that previously was treated as a cost rather than an “investment.” Yup:research and development, which in China has a different name: Piracy and Reverse Engineering, only R&D is sexier than P&RE.
Which brings us to the question of the day: have we finally gone full econotard? Or is changing the rules to hit your target, while fabricating the dumbest possible adjustments, now considered very serious economic policy?
Full note from Goldman Sachs, whose humor value is far higher than the author intended:

This post was published at Zero Hedge on 09/02/2014.

I Didn’t Believe the IRS Anyway

Lois Lerner’s emails are back from the dead – sort of. The former IRS official’s BlackBerry, however, is still long gone. The IRS intentionally destroyed it in June 2012 (after congressional staffers interviewed Lerner about the IRS targeting conservative groups) as the Deputy Assistant Chief Counsel acknowledged in a recent sworn declaration.
We’ve all met someone we just don’t trust but don’t know why. There’s often a pretty good reason to feel that way.
Has someone ever made an insincere attempt to flatter you? Their words might be complimentary, but their body language, tone, and/or context let you know the compliment is phony. Does this guy really think I’m that stupid?
So, up goes your trust wall. If he’ll lie about this, he’ll lie about anything.
The IRS debacle is a prime example of why we build trust walls. The emails Congress requested had (supposedly) been deleted when several hard drives crashed. I asked my colleague Alex Daley (our in-house technology guru) what the probability was of that happening. Here’s what he had to say:
Everyone who ever owned a computer knows that hard drives are finicky beasts. In fact, Google uses a LOT of hard drives and so they have published all kinds of research on their failure rates. The gist: there’s about a 1 in 36 chance a hard drive fails in any given month. The math says then that if the IRS was practicing good data center management practices – we have to assume, however silly it might seem, that the agency responsible for holding the most personal information on American citizens outside the NSA is following best practices – then the chance of seven hard drives failing at the same time and wiping out the data on them is about 1 in 78 billion.

This post was published at GoldSeek on 2 September 2014.