Monday, October 11, 2010
IMF Fails, Gold Shines as Currency Wars to Continue
"The IMF was unable to stem the tide of competitive currency devaluations over the weekend. As a result, governments and central banks around the world still have the green light to continue with their money printing orgy. Some of the citizens of these various regions and countries have recently been acting as their own central banks by purchasing gold as insurance against the currency wars. As fears escalate, the question now becomes, when will the people of this world once again have a stable system of currency?
Here is a new piece exclusively for the King World News blog from Ben Davies, CEO of Hinde Capital which sums up the situation nicely:
IMF At The Epicenter Of Currency Earthquake
By Ben Davies, CEO of Hinde Capital
October 10 (King World News) - Henry Hazlitt was the modern literary agent of libertarianism. At the advent of Bretton Woods he stood alone in his New York Times editorials condemning the monstrosity, as he termed it, that was the IMF. He considered this entity no different to the Federal Reserve Bank. Another organization espousing the values of economic growth and price stability. In reality, they were both merely agents for the propagation of money to aid and abet the continuation of the flawed policies and practices of a country. In the case of the IMF they called on loans from member countries to 'bail out' bankrupt nations globally. The IMF prolonged the inevitable misery and didn't address the issues that got the country into difficulties in the first place.
Emergent nations once patronized by IMF bailouts and inappropriate 'conditional love' have put two fingers up. I can almost hear the BRIC nations silent mutterings, "Why should we 'flex' our currencies to assist the developing nations who so highmindedly leered over us in troubled times passed and revelled in our misery."
Bretton Woods was possible due to the economic strength of US. The Plaza Accord was permitted because it was in the best interest of the US. The Louvre Accord which tried to arrest the efforts of the Plaza Accord of two years earlier, ironically, was permitted because it was in the best interest of the US.
The US and developed nations no longer wield power anymore. " IMF who? " the BRIC’s cry. Right now the emergent nations are more content to say "our currency, your problem". Unfortunately the West, particularly the US have returned the favour, "our bonds, your problem" and so the stalement will prevail.
Unfortunately as each day passes, the friction of the global monetary fault lines grow stronger. These fault lines will release their energy in the largest world monetary earthquake known to man, as we witness the inevitable demise of the fiat currency system - as all such systems have failed before, leaving not one survivor.
As currency wars escalate, it is wise for individuals to have a presence outside of the system by owning gold."
- Eric King Of King World News
Friday, October 8, 2010
Say What!
If jobs grew at 50,000 per month it would only take 13 years to regain the jobs lost.
Where is the recovery on Main Street?
Where is the recovery on Main Street?
Monday, October 4, 2010
The Day Securitized Debt On Mortgages Died
The following is BREAKING NEWS:
Racketeering suits (RICO), now as civil class action suits in two states, have hit the nail on the head. The civil suit says the banks do not have proper title to the homes on which they are foreclosing. This by direct inference questions if securitized debt on mortgages have real collateral behind them.
Simply stated a long time ago by Marie McDonnell and myself, THEY DO NOT.
That means legacy assets are cooked, dead, and worthless, yet are now marked up in value to cost and above. This is all thanks to FASB’s capitulation that now represents a large amount of capital for the Western world’s financial entities.
The you know what hit the fan today for those that understand. October 4th 2010, the essence of securitized debt on mortgages died!
That alone gives you gold at $1650.
- Jim Sinclair
Racketeering suits (RICO), now as civil class action suits in two states, have hit the nail on the head. The civil suit says the banks do not have proper title to the homes on which they are foreclosing. This by direct inference questions if securitized debt on mortgages have real collateral behind them.
Simply stated a long time ago by Marie McDonnell and myself, THEY DO NOT.
That means legacy assets are cooked, dead, and worthless, yet are now marked up in value to cost and above. This is all thanks to FASB’s capitulation that now represents a large amount of capital for the Western world’s financial entities.
The you know what hit the fan today for those that understand. October 4th 2010, the essence of securitized debt on mortgages died!
That alone gives you gold at $1650.
- Jim Sinclair
Friday, October 1, 2010
FORMER MAJOR GOLD SELLERS ARE ABSENT FROM THE MARKET
Gold sales by central banks in Europe fell to a very low level in the twelve month period ending 9/30/2010. The rate of sales was about 95% below the average of the last decade.
Interestingly, over the last 12 months several governments announced that they were open market buyers of gold. These include Russia, China, Thailand, and India.
- Monty Guild
Interestingly, over the last 12 months several governments announced that they were open market buyers of gold. These include Russia, China, Thailand, and India.
- Monty Guild
Tuesday, September 28, 2010
25 Nations Devalue their Currencies, RACE TO THE BOTTOM!
Within the last week, 25 Nations Devalued their currencies, through massive quantitative easing. This is talked about by the media only slightly. You need to do your own research, remember QE is a form of shadow taxation, so you should be interested as it affects us all.
Here is a quote from Ben Davies today, CEO of Hinde capital out of London:
“Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.”
Here is a quote from Ben Davies today, CEO of Hinde capital out of London:
“Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.”
Tuesday, September 14, 2010
Dear Friends,
Today is a case of being careful what you wish for – the Fed has pulled out all the stops in an attempt to avoid a deflationary trap tied to the inception of the credit crisis that broke loose in the summer of 2008. Since then they have flooded the system with liquidity through a process dubiously referred to as Quantitative Easing. They have also loaded their balance sheet with worthless loan paper and shoved interest rates practically to zero.
Not to be outdone, our illustrious administration has saddled us with enough debt at the federal level to last three generations all in the name of “stimulus”.
The result – they have gotten their wish – sadly for all of us, who actually have to live with their damn stupidity, they have let slip the dogs of inflation who have bared their fangs and are now ravenously devouring the hopes and dreams of the middle class in this nation.
The funny money has made its way into the commodity sector driving food prices to unseemly high levels once again just as what happened in 2008. Corn is now within spitting distance of $5.00, wheat is more than $7.00, soybeans are over $10, sugar is over $0.24/pound, cotton is closing in on $1.00, coffee is up near $2.00 pound wholesale ( a 13 year high), cattle are just shy of $1.00/pound, bellies are trading over $1.50/pound for fresh product. In short, the consumer is on the verge of watching his or her’s disposal income decimated by high food prices at the very time that a record number of Americans are on food stamps and are either unemployed or underemployed.
I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.
The only bit of saving grace is that energy prices have not YET begun moving up alongside the rest of the commodity complex. I think it is only a matter of time however before the crude complex gets involved. When it does, home heating bills, home cooling bills, industrial energy costs and gasoline prices will join the list of soaring costs nationwide.
The one-two knockout punch of higher soaring food cost and higher energy costs will finish off the consumer whose wages have been stagnant for longer than I can now remember.
Make no mistake about what you seeing, especially with the price action of gold and silver. Both metals are signifying a loss of confidence in the Dollar and particularly in its management team. It is ironic is it not, that any supposedly friendly economic news now results in waves of Dollar selling whereupon in times not that far past, any negative news yielded a huge inflow into the Dollar as a safe haven. Good news – Dollar goes down; Bad news – Dollar goes up.
Now to the technical picture in gold –
Fund buying came in such torrents that it overcame the bullion bank wall of offers near and just above $1,260. As those crumbled, opportunistic shorts that like to piggyback the banks were forced to cover. Their buying engendered more fresh buying allowing gold to not only take out $12,65 but run past $1,275 setting a new lifetime high in the process.
Open interest is at a relatively low level even with this breakout meaning that this rally has legs.
We are now in uncharted territory for gold so resistance levels are being projected by other means of former peaks. It appears that we should see some efforts to stall the rise near $1,282 – $1,285. Failure there and gold will be at $1,300 before one can blink.
Silver took out critical resistance at $20.50 total but just missed closing above that level. Once it does so, it is off to $21. A push through $21.50 and it should move up towards $23.
The HUI is finally moving up showing very good strength here near midday as it has bested stubborn resistance near the very tough 500 level, a level which I might add has kept it in check for more than a year now. If it can CLOSE above 500, it is poised to make a run at the all time high just shy of 520. If it can push through that level, the longsuffering gold and silver share owners are going to finally see their patience rewarded with an acceleration the long term uptrend in the cards.
The Dollar crashed through what should have been a floor of support near the 82 level as if the boards were made of rotten, termite-infested timbers. It is now headed to 80, where if it fails, the ill winds of inflation blowing through the economy are only going to intensify.
Not to be outdone, our illustrious administration has saddled us with enough debt at the federal level to last three generations all in the name of “stimulus”.
The result – they have gotten their wish – sadly for all of us, who actually have to live with their damn stupidity, they have let slip the dogs of inflation who have bared their fangs and are now ravenously devouring the hopes and dreams of the middle class in this nation.
The funny money has made its way into the commodity sector driving food prices to unseemly high levels once again just as what happened in 2008. Corn is now within spitting distance of $5.00, wheat is more than $7.00, soybeans are over $10, sugar is over $0.24/pound, cotton is closing in on $1.00, coffee is up near $2.00 pound wholesale ( a 13 year high), cattle are just shy of $1.00/pound, bellies are trading over $1.50/pound for fresh product. In short, the consumer is on the verge of watching his or her’s disposal income decimated by high food prices at the very time that a record number of Americans are on food stamps and are either unemployed or underemployed.
I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.
The only bit of saving grace is that energy prices have not YET begun moving up alongside the rest of the commodity complex. I think it is only a matter of time however before the crude complex gets involved. When it does, home heating bills, home cooling bills, industrial energy costs and gasoline prices will join the list of soaring costs nationwide.
The one-two knockout punch of higher soaring food cost and higher energy costs will finish off the consumer whose wages have been stagnant for longer than I can now remember.
Make no mistake about what you seeing, especially with the price action of gold and silver. Both metals are signifying a loss of confidence in the Dollar and particularly in its management team. It is ironic is it not, that any supposedly friendly economic news now results in waves of Dollar selling whereupon in times not that far past, any negative news yielded a huge inflow into the Dollar as a safe haven. Good news – Dollar goes down; Bad news – Dollar goes up.
Now to the technical picture in gold –
Fund buying came in such torrents that it overcame the bullion bank wall of offers near and just above $1,260. As those crumbled, opportunistic shorts that like to piggyback the banks were forced to cover. Their buying engendered more fresh buying allowing gold to not only take out $12,65 but run past $1,275 setting a new lifetime high in the process.
Open interest is at a relatively low level even with this breakout meaning that this rally has legs.
We are now in uncharted territory for gold so resistance levels are being projected by other means of former peaks. It appears that we should see some efforts to stall the rise near $1,282 – $1,285. Failure there and gold will be at $1,300 before one can blink.
Silver took out critical resistance at $20.50 total but just missed closing above that level. Once it does so, it is off to $21. A push through $21.50 and it should move up towards $23.
The HUI is finally moving up showing very good strength here near midday as it has bested stubborn resistance near the very tough 500 level, a level which I might add has kept it in check for more than a year now. If it can CLOSE above 500, it is poised to make a run at the all time high just shy of 520. If it can push through that level, the longsuffering gold and silver share owners are going to finally see their patience rewarded with an acceleration the long term uptrend in the cards.
The Dollar crashed through what should have been a floor of support near the 82 level as if the boards were made of rotten, termite-infested timbers. It is now headed to 80, where if it fails, the ill winds of inflation blowing through the economy are only going to intensify.
Wednesday, September 8, 2010
Strapping In For The Big Move
Dear CIGAs,
Now that expectations for Gold at very significant prices are being offered by various rational sources, there is one thing you can be sure of. That one thing is $1650.
I am getting many emails asking how it is possible for the gold price to reach $1650 by early January.
I suspect these are far out in time, out of the money call option buyers that have done exactly what I have warned against. That is the using of options with an investment outlook.
Options are speculations that you never hold past the half way to expiry point, but instead switch to further out months if you believe in what you are doing.
Those that pre-offer gold cannot trade it at $1650 in January because of the short time versus the big moves. They clearly have never experienced the gold run in late 1979 and early 1980.
I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options.
It has given me the courage to invest in gold without margin both in shares and bullion.
There is no doubt in my mind that $1650 will occur in early 2011. I have told you that Martin Armstrong, a master timer, feels that gold will trade higher and face a reaction in middle to late June of 2011.
The gold banks are throwing blocks to the price as we approach $1262. This is a major waste of time and money as gold is going to and through that price. The only argument is whether gold will hit $1650 in January 2011 or $3000-$5000 in June 2011.
Do you have any idea how much money has been made by those that bought gold modestly and in cash only on every reaction and sold into the rhino horns? It sounded stupid when I suggested this tactic for the wannabe traders.
I ran 22,000 long gold contracts in the New York and London markets in 1978 to 1980. Back then that was a big number. Today if I have a conviction, I simply play with everything I have and screw credit. The only credit I would use as a pro trader is options.
Those of you who follow me closely know that I am NOT kidding. This is the time when PRICE and TIME meet each other.
This is the time now as it was in 1979 that I went throttle to floor.
This is the time now as it was in 1979 that I am committing 100% of all the cash I can accumulate to what I believe in.
This is the time when all I have planned for is falling into place for the final and enormous pay day. However, I will not and you should not violate discipline, as I have always tried to teach you.
Option are never held past 50% of time left when you purchased them.
If I am wrong about gold at $1650 on or before 14/01/11 it only means gold will trade much higher than $1650 five months later.
As far as being long and wrong, that is something I definitely am not.
Respectfully,
Jim
Now that expectations for Gold at very significant prices are being offered by various rational sources, there is one thing you can be sure of. That one thing is $1650.
I am getting many emails asking how it is possible for the gold price to reach $1650 by early January.
I suspect these are far out in time, out of the money call option buyers that have done exactly what I have warned against. That is the using of options with an investment outlook.
Options are speculations that you never hold past the half way to expiry point, but instead switch to further out months if you believe in what you are doing.
Those that pre-offer gold cannot trade it at $1650 in January because of the short time versus the big moves. They clearly have never experienced the gold run in late 1979 and early 1980.
I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options.
It has given me the courage to invest in gold without margin both in shares and bullion.
There is no doubt in my mind that $1650 will occur in early 2011. I have told you that Martin Armstrong, a master timer, feels that gold will trade higher and face a reaction in middle to late June of 2011.
The gold banks are throwing blocks to the price as we approach $1262. This is a major waste of time and money as gold is going to and through that price. The only argument is whether gold will hit $1650 in January 2011 or $3000-$5000 in June 2011.
Do you have any idea how much money has been made by those that bought gold modestly and in cash only on every reaction and sold into the rhino horns? It sounded stupid when I suggested this tactic for the wannabe traders.
I ran 22,000 long gold contracts in the New York and London markets in 1978 to 1980. Back then that was a big number. Today if I have a conviction, I simply play with everything I have and screw credit. The only credit I would use as a pro trader is options.
Those of you who follow me closely know that I am NOT kidding. This is the time when PRICE and TIME meet each other.
This is the time now as it was in 1979 that I went throttle to floor.
This is the time now as it was in 1979 that I am committing 100% of all the cash I can accumulate to what I believe in.
This is the time when all I have planned for is falling into place for the final and enormous pay day. However, I will not and you should not violate discipline, as I have always tried to teach you.
Option are never held past 50% of time left when you purchased them.
If I am wrong about gold at $1650 on or before 14/01/11 it only means gold will trade much higher than $1650 five months later.
As far as being long and wrong, that is something I definitely am not.
Respectfully,
Jim
Sunday, August 29, 2010
Fiat Money to Meet its End
In Richard Russell’s latest commentary, the Godfather of newsletter writers discusses bear markets, gold, silver and fiat money. Russell is always focused on the big picture. This time he highlights the biggest fraud of the last half a century and how it will end. Here are a few snippets from his latest commentary...
August 30, 2010
Richard Russell:
Bear markets exist for the purpose of exposing and eliminating the greed, the corruption and the fraud that thrived in the preceding primary bull market.
To my mind, the biggest fraud of the last fifty years has been the rise and acceptance of fiat "money." For that reason, I expect fiat money to meet its end before this bear market breathes its last. Judging by the size of the top, this could be the biggest bear market since the '30s. I believe this bear market means to take us back to basics and truth. That alone implies the end of central bank-created money and the rise of gold and probably silver. It may also end that immoral inflation machine, the Federal Reserve. Wall Street and its bankers now run the nation. That too will end.
The history of money in the US is a legend of lies, manipulation, immorality and greed. I think this bear market will end those lies, one way or another.
Russell on gold and silver:
This only suggests that gold could be rather wild between the months of December through April.
Silver joins gold. This morning silver broke above out of a huge triangle. This is bullish for the whole precious metal spectrum.
Investors sometimes get caught up in the day to day and week to week movements in gold and silver. Don’t waste your time or energy on that, just accumulate. Standing in front of us is the greatest transfer of wealth in history. When the dust settles, those holding the gold will make the rules.
Eric King
King World News
August 30, 2010
Richard Russell:
Bear markets exist for the purpose of exposing and eliminating the greed, the corruption and the fraud that thrived in the preceding primary bull market.
To my mind, the biggest fraud of the last fifty years has been the rise and acceptance of fiat "money." For that reason, I expect fiat money to meet its end before this bear market breathes its last. Judging by the size of the top, this could be the biggest bear market since the '30s. I believe this bear market means to take us back to basics and truth. That alone implies the end of central bank-created money and the rise of gold and probably silver. It may also end that immoral inflation machine, the Federal Reserve. Wall Street and its bankers now run the nation. That too will end.
The history of money in the US is a legend of lies, manipulation, immorality and greed. I think this bear market will end those lies, one way or another.
Russell on gold and silver:
This only suggests that gold could be rather wild between the months of December through April.
Silver joins gold. This morning silver broke above out of a huge triangle. This is bullish for the whole precious metal spectrum.
Investors sometimes get caught up in the day to day and week to week movements in gold and silver. Don’t waste your time or energy on that, just accumulate. Standing in front of us is the greatest transfer of wealth in history. When the dust settles, those holding the gold will make the rules.
Eric King
King World News
Thursday, August 12, 2010
Slippery Slope
When a government plan fails, further government and agency programs will be initiated based on the same game plan.
Here we go down that slippery slope of bailing out homeowners without jobs and yesterday’s states without necessary income.
This period will consume as much and more than the first bailout of Wall Street – one trillion or more. Gold will trade $1650 and beyond.
- Jim Sinclair
Here we go down that slippery slope of bailing out homeowners without jobs and yesterday’s states without necessary income.
This period will consume as much and more than the first bailout of Wall Street – one trillion or more. Gold will trade $1650 and beyond.
- Jim Sinclair
Tuesday, August 3, 2010
Money Never Dies
Since the birth of man’s awareness of the future, money never dies. It only changes in form.
I have studied hyperinflation from ancient to modern times. It embodies the smell of fear and the felling of helpless for those unprepared for a currency transition. It is the manifestation of private and public panic – the panic to protect yourself, but neither knowing what to do nor able to do so in a timely manner. Hyperinflation is a crash in confidence of not only those that manage the currency but also the public leadership that surrounds it. Hyperinflation as an event tends to create both a confidence and power vacuum in which new leadership, either benign or sinister, tends to exploit.
Sincerely,
Eric
I have studied hyperinflation from ancient to modern times. It embodies the smell of fear and the felling of helpless for those unprepared for a currency transition. It is the manifestation of private and public panic – the panic to protect yourself, but neither knowing what to do nor able to do so in a timely manner. Hyperinflation is a crash in confidence of not only those that manage the currency but also the public leadership that surrounds it. Hyperinflation as an event tends to create both a confidence and power vacuum in which new leadership, either benign or sinister, tends to exploit.
Sincerely,
Eric
Sunday, July 11, 2010
Gold is Going Higher...
"Daily Bell: Where is gold going? Silver? Harry Schultz: Much higher. Sky is the limit for gold. Governments are losing control of gold. They cheat, steal, lie, maneuver … but gold will beat them and is already doing so, in stages."
- Harry Schultz
- Harry Schultz
BP is Finished?
Rickards correctly predicted that BP would be charged with criminal negligence, and he also predicted this would result in damages that would finish the company altogether. In less than 30 days, Politico has confirmed that criminal charges are forthcoming against BP and that others will be prosecuted as well.
This was from the Jim Rickards piece on June 18th titled Why BP Will Not Survive:
“Don't think the law can stop this. The law will accelerate it. BP's negligence will turn out to be criminal, not civil and the criminal penalties are exponentially greater than the civil fines and normal tort claims. Obama will use the threat of criminal prosecution to get more and then use an actual criminal prosecution to get the residual.”
To read the entire Jim Rickards piece “Why BP Will Not Survive” CLICK HERE.
This was from the Politico article signaling the BP criminal investigation:
Attorney General Eric Holder signaled here that the Justice Department may be conducting a sweeping criminal investigation into the Gulf Coast oil spill, saying that its suspected targets may cover more than just BP.
"There are a variety of entities and a variety of people who are the subjects of that investigation," Holder told CBS' Bob Schieffer at the Aspen Ideas Festival.
To read the entire Politco article confirming the criminal investigation of BP and apparently others CLICK HERE.
Eric King
KingWorldNews.com
Thursday, July 8, 2010
Champions! Gold and Silver
"Gold and silver have no counterparty risk, they are no one's liability or promise, they shall always have value. Governments and “Too Big to Fails” can all default; fiat currencies can go up in flames, gold and silver will remain poised competing neck and neck to champion the podium as the number one worldwide monetary unit of choice."
- Mike Maloney
- Mike Maloney
Wednesday, July 7, 2010
Eternal Wealth
"My advice now is to put as much of your money as you’re comfortable with in bullion coins. The reason rich men accumulate gold is as follows. Gold is eternal wealth. Own three thousand ounces of gold, and you’ll always be wealthy. Remember the simple phrase that’s been around through years of history – “There’s no fever like gold fever.” Fiat money is doomed. Act on it."
- Richard Russell
- Richard Russell
Subscribe to:
Posts (Atom)