Official Pharmacy Investing (Stocks/Funds) Thread!

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Momus said:
Fast way to the poor house.
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Yes, but what's the explanation on that? It's a daily fluctuation that's been going on for a while with daily trading. Why would that not work?
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Here's some excerpts from Jim Willie's latest:

"There is an Exit Strategy, but it is evident in the East. The Eastern nations are assembling a Eurasian Trade Zone and a BRICS central bank (aka Development Fund) with which they will exit the USDollar global reserve standard. In doing so, they will not require to fill their banking systems any longer with toxic USTBonds....

The Gold Trade Standard is coming into view. The East is no longer following the US lead, as a rebellion against the USDollar and its toxic USTreasury Bond is well along. The Eastern giants Russia and China are forging a new path, to install a new Gold Trade Standard that thumbs its nose at the Western banking system and the FOREX currency market. Its marketplace will be the Eurasian Trade Zone, and its gold central bank will be the BRICS Development Fund (clever name to disguise its eventual function)."

[YOUTUBE]http://www.youtube.com/watch?v=9o30gNfPq_k&feature=player_detailpage[/YOUTUBE]


[YOUTUBE]http://www.youtube.com/watch?v=UcuPdFxF0nc&feature=player_detailpage[/YOUTUBE]
 
How can the Fed unwind its balance sheet? That will be asked tomorrow. Here's what Ben won't say, but Lyle Gramley did in 2008 on BNN---the nuclear option is always there, the gold reset button.


Interviewed Monday this week on the "Trading Day" program of Business News Network in Canada, former Federal Reserve Governor Lyle Gramley hinted that a big upward revaluation of gold may figure heavily in the Fed's attempt to rescue the U.S. economy.

The program's guest host, Niall Ferguson, an author and history professor at Harvard, asked Gramley, now senior adviser at Stanford Group in Houston, about the seemingly grotesque expansion of the Fed's balance sheet in recent months.

Ferguson asked: "I've heard it said that the Fed has turned into a government-owned hedge fund, leveraged at 50 to 1. Do you feel nervous about what this might actually do to the Fed's reputation?"

Gramley replied: "I think you have to reckon with the fact that one of the Fed's assets is gold certificates, which are priced, as I remember, at $42 an ounce, and if we were to price them at market prices, the Fed's leverage would look a lot less than it is now."

While valuing the U.S. government's claimed gold reserves at today's Comex closing price of around $822 per ounce instead of the government antique bookkeeping entry of $42.22 per ounce would indeed vastly expand the government's monetary assets, it might not be enough to offset the liabilities and guarantees the government lately has taken on. But the job might be done by revaluing the gold to $5,000 or $10,000 per ounce, as the British economist Peter Millar speculated two years ago might be necessary to prevent debt deflation:

http://watch.bnn.ca/trading-day/december-2008/trading-day-december-8-200...
 
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Ackj said:
Yes, but what's the explanation on that? It's a daily fluctuation that's been going on for a while with daily trading. Why would that not work?
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There is a major difference between speculating and investing. I like to invest not speculate. There is a reason why penny stocks is 0.05 cent vs $60 Coach.

And, you vs someone who bathes, ****s, eats 24/7 on penny stocks. A pure speculator, pump and dump, and a day trader. You think you can win?
http://freefrombroke.com/why-you-should-avoid-penny-stocks/
http://youthfulinvestor.com/penny-stocks-dangerous-investment/
http://www.nextavenue.org/article/2013-02/growing-danger-penny-stocks
 
exter-inverse-pyramid.jpg
 
Grumps, of course you can post on this thread but I was wondering if you can start a gold thread and post there about gold? I would like to read other members' opinions on other issues but your constant posts about gold is making that difficult.

It would be great if you can start a gold thread and people who are interested jn gold can read that thread. Thank you for your consideration.
 
[YOUTUBE]http://www.youtube.com/watch?v=mhR2p4APfEo&feature=player_detailpage[/YOUTUBE]
 
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The birth of a global currency
By: Deborah Stokes
http://www.businesswithoutborders.com/industries/others-industries/the-birth-of-a-global-currency/

"...The internationalization of the RMB, as engineered by the Chinese government, is happening at warp speed. At the start of 2012, the RMB ranked 20th among international currencies, according to SWIFT (Society for Worldwide Interbank Financial Telecommunication). It leaped six spots in nine months...That same year also saw the issuance of the first dim sum bond in Hong Kong, corporate bonds issued in RMB-denominated funds. McDonalds, Caterpillar and HSBC Bank are some of the growing number of companies issuing dim sum bonds....
 
Here's a good article why we can't grow.
http://www.oftwominds.com/blogmay13/different-economy5-13.html

College Grads: It's a Different Economy (May 3, 2013)

The economy has changed in structural ways; preparing for the old economy is a sure path to disappointment.

Millions of young people will be graduating from college over the next four years, and unfortunately, they will be entering an economy that has changed in structural ways for the worse. It's easy to blame politics or the Baby Boomers (that's like shooting fish in a barrel), but the dynamics are deeper than policy or one generation's foolish belief in endless good times and rising housing prices.....
 
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[YOUTUBE]http://www.youtube.com/watch?v=2ssrcD5GdPQ&feature=player_embedded[/YOUTUBE]


[YOUTUBE]http://www.youtube.com/watch?v=ImuVUab6WW0&feature=player_embedded[/YOUTUBE]

[YOUTUBE]http://www.youtube.com/watch?v=8Qsll_5-FXc&feature=player_embedded[/YOUTUBE]

[YOUTUBE]http://www.youtube.com/watch?v=iK-741ISz94&feature=player_embedded[/YOUTUBE]

[YOUTUBE]http://www.youtube.com/watch?v=lQf-u2nCVSw&feature=player_embedded[/YOUTUBE]
 
http://www.zerohedge.com/news/2013-05-04/captain-says-goodbye-full-final-edition-privateer

"The "Controversy" Over Government Manipulation Of Gold:

To state that the more despotic a government becomes or aspires to become - the greater grows their antipathy to Gold as money - is a trivial observation. To argue over whether government is constantly on the lookout for more ways to interfere with Gold ever regaining its role as money is a trivial pursuit. To maintain that governments don't try to influence the "price" of Gold in terms of the fiat currencies on which their continued domination depends is just plain silly."
 
Does everybody have a full tank?

[YOUTUBE]http://www.youtube.com/watch?v=EbT5AEWBSYA&feature=player_detailpage[/YOUTUBE]
 
Dr. Paul Craig Roberts:
"They can barely get by as it is, so if they are faced with a sharp increase in inflation what do they do? These kinds of problems should be foremost in getting attention, instead of the false claims that Syria is using chemical weapons. In other words they just want to go to war. They want more wars. They want more (of a) police state.
That response in Boston, I mean it was absurd to have 10,000 troops and tanks on the streets looking for one 19 year old. Close down an entire metropolitan area, one of our major cities, because they are looking for one kid? What they are doing just shows a complete incompetence. So I think they are driving it into collapse, and it would have already collapsed if there was a clear alternative, a clear currency alternative to the dollar.
But you see we (the central planners) keep the euro in trouble, and that hype goes on with all of the trouble in Europe. So it (the euro) is not an alternative. We now have the Japanese printing money as fast or faster than the Federal Reserve. So the yen isn't an alternative. The Chinese currency is not yet fully convertible like it would have to be. So I think on the whole that it can go on for some time. People holding dollars, what are they going to do with them?
Now the minute they all decide to get gold and silver, well, then those prices will just go through the roof. But that's what I think the Federal Reserve is trying to prevent by the naked short selling in the paper (gold) market. It's to keep people unnerved about that, or (at least) keep most people unnerved about it. Of course it doesn't affect the people who have already caught on, they still want the bullion."
 
Charles Hugh-Smith:
"Every trader wants to short the market after it becomes obvious the trend has reversed. But since there are so few shorts left, the decline (should one ever be allowed to happen) might not be orderly enough for everyone to pile on board. More likely, the train will leave with few on board and the initial drop will leave everyone who was convinced the uptrend was permanent standing shell-shocked on the platform with margin calls in hand...When it is obvious the trend has reversed, it will be too late to profit from it.

The conclusion? What is "obvious" to those embedded in the conventional, MSM/state-manufactured worldview is not the same as what is obvious to those outside the asylum.
 
[YOUTUBE]http://www.youtube.com/watch?v=c3pFKicj9MY&feature=player_detailpage[/YOUTUBE]
 
grumps said:
Here's some excerpts from Jim Willie's latest:

"There is an Exit Strategy, but it is evident in the East. The Eastern nations are assembling a Eurasian Trade Zone and a BRICS central bank (aka Development Fund) with which they will exit the USDollar global reserve standard. In doing so, they will not require to fill their banking systems any longer with toxic USTBonds....

The Gold Trade Standard is coming into view. The East is no longer following the US lead, as a rebellion against the USDollar and its toxic USTreasury Bond is well along. The Eastern giants Russia and China are forging a new path, to install a new Gold Trade Standard that thumbs its nose at the Western banking system and the FOREX currency market. Its marketplace will be the Eurasian Trade Zone, and its gold central bank will be the BRICS Development Fund (clever name to disguise its eventual function)."



World Bank Whistle-blower: “Precious Metals To Serve As An Underpinning For Paper Currencies”

http://bullmarketthinking.com/world-bank-whistle-blower-precious-metals-to-serve-as-an-underpinning-for-paper-currencies/

"A major shock to that centralized power base, according to Karen, was the recent move by BRICs nations leaders to bypass the World Bank for their financing needs, by establishing their own development bank. “As the BRICs [nations] economic power grows,” she explained, “they’re not going to be strangled anymore through the grabbing [of] their resources…So their decision to start their own development bank was their way of letting [world] governments know…that its time to end this corruption.”

When asked her thoughts on what this all means for the world monetary system, Karen said, “What’s going to happen, is we’re going to have all the countries of the world, sit down and figure out what’s going to be the best, most orderly transition from the current system that we have, [which has] profound imbalance and unsustainable deficits…[this change] is going to happen as each country makes its preference known, because the system we have now is not transparent, and the biggest change [in the new system], is that there’s going to be transparency.”

That transparency may be found through a gold-backed currency system, Karen noted, as, “All of the countries of the world are going to allow precious metals to serve as currency, and this will be an underpinning for paper currency, [as] we’ll have both systems at the same time. This is my guess, as I mentioned—I am an economist.”

As a final comment speaking towards her difficult journey as a World Bank whistle-blower, Karen said, “I’ve been struggling now for years, to tell the American public what’s [been] going on. I haven’t gotten through, because this [financial] group has bought up the press and has been spreading disinformation systematically. That undermines the whole point of a democracy. How can voters vote without an informed opinion, without the information that they’re entitled too? So this strangle-hold on information is going to end in very short order.”
——

What have I been telling you guys.
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[YOUTUBE]http://www.youtube.com/watch?v=SlBk_TwWX0k&list=PLYO92oSTdhxyFdcv3q54nrJLn8cD608lg&feature=player_detailpage[/YOUTUBE]

Girl group bases style on Nikkei ups and downs
by Jun Hongo

Kanon Mori, Yuki Sakura, Hinako Kuroki and Jun Amaki have been following the Nikkei 225 stock average obsessively since Prime Minister Shinzo Abe took office in December. The oldest of the foursome is Mori, but she is still only 23. The youngest is Kuroki, 16 and still in high school.

None of them are studying for a degree in economics, let alone playing the stock market. Instead, the four are members of a new idol group, Machikado Keiki Japan, and stocks play an important part in their performances.

"We base our costumes on the price of the Nikkei average of the day. For example, when the index falls below 10,000 points, we go on stage with really long skirts," Mori explained.

The higher stocks rise, the shorter their dresses get. With the Nikkei index ending above 13,000, the four went without skirts altogether on the day of their interview with The Japan Times, instead wearing only lacy shorts.

While some have raised eyebrows over the group's daring concept, Mori explained that they are merely letting the economy take charge of how they dress — mimicking economic trends of the past.

The miniskirt boom of the 1960s coincided with Japan's strong economic growth in the era, she pointed out. The disco boom of the late 1980s also saw women dancing in short skirts in Tokyo discos as the Nikkei kept breaking record highs until the collapse of the bubble economy ended its run above 38,000.

The notion that a strong economy results in shorter dresses on women is dubious at best, but instead of trying to piece together an elaborate "butterfly effect," members of Machikado Keiki Japan have chosen to condense the process and just let stock prices, which have spiked upward on Abe's watch, directly decide the length of their uniforms.

Machikado Keiki Japan (roughly translated as Economic Conditions on the Streets of Japan) released their debut single, "Abeno Mix," on April 7. It pays homage to Abe's ultraloose economic policies that have been dubbed "Abenomics" by the media.

"Fix the yen's appreciation. Quantitative easing. Don't forget public investment," a line in the dance-pop tune goes. "Monetary easing. Construction bonds. Let's just revise the Bank of Japan Law."

The group's fans — who not surprisingly are 95 percent male, from high school to their 50s — have special chants that they perform during the song's interlude.

"They yell out economic terms during our concerts, something like Shinzo Abe! Monetary policy! Private investment!" Mori said.

"Economics are often just about the mood of the people, which is something intangible," Sakura, 20, pointed out.

The University of Tokyo student hopes that her group's concept and performances, as well as their music, can add to the positive domestic vibe that is beginning to heat up.

Stocks are at their highest in nearly five years after an Abenomics-driven hammering of the yen and a newly compliant BOJ sent investors flocking to sure bets in exporters. Abe also still enjoys a high support rate, although he won't reveal his true economic policies until June.

But Sakura warns that much more needs to be done for the public to be able to enjoy the good economy.

"Previous administrations were overly conservative and couldn't push forward huge changes. We expect the administration to implement drastic changes that will stimulate individual spending," she said.

The young ladies are eager to see the economy get on a roll, although they have yet to decide what their costumes will look like if the Nikkei tops 15,000.

"The image I have of the bubble economy in the '90s . . . is people dancing around and exposing their body," said 17-year-old Amaki, who was born in 1995, well after the bubble imploded. "I think Japan needs to seek strong economic growth, but it should be sustainable," she added.

Kuroki said she had no interest in economics before joining the group.

"But now I know what is going on whenever I check the news," she said. "The idea of having my skirts getting shorter surprised my mom, but she is very supportive today about what I do."

Much of Machikado Keiki Japan's future remains uncertain at this point, just like the economy. Members say they could call it quits if the Nikkei reaches a certain level, or if it falls too low.

But as an idol group, their eyes are set on cheering up their fans and maybe even stimulating the market with their anthem and their performances.

"We don't see AKB48 and other idol groups as our rivals," Mori said.

"If I had to pick our rival, I'd say it is an economic depression."
 
While everybody's stroking themselves on a 15000 Dow, don't look but...

Rosenberg-NYSE-Fed-BalanceSheet-050313.PNG


Disclosure: I'm short vaseline futures
 
It fascinating watching the sherpas for the Roman Cult bail. Expect more internecine strife as lower level players are cut off. Cyprus was just the beginning of the trillionaires wiping out the billionaires. The thigh bone's connected to the knee bone...



[YOUTUBE]http://www.youtube.com/watch?v=hCCr-uiqtAY&feature=player_detailpage[/YOUTUBE]
 
You do realize that:

  1. Nobody is paying any attention to what you are posting.
  2. They started a new thread to get away from your toxic emissions.
  3. Anybody left paying attention, thinks you are off your meds.

Save us all a great deal of time and server storage space. Just post back when what you say comes true and say I told you so, until then just stop already....... This is like watching a train wreck in slow motion.
 
http://www.tfmetalsreport.com/blog/4700/todays-assignment

. ...HomeAboutBlogPodcastChatForumsCommentsTurdismsChartsStoreContact..Today's Assignment
Tuesday, May 7, 2013 at 9:51 am
While we watch the morning raid and hope for a recovery FUBM, here's a video for you to consider.

A link to this was sent to me yesterday. The lady that gives the presentation is named Christine Hughes. She's the President of something called Otterwood Capital Management, which appears to be a money manager or hedge fund, based in Toronto. I don't completely agree with all of her analysis...and that's OK. Since when does everybody agree on everything? But I've determined that this video is worth your time to watch.

Though her analysis of gold is faulty because she is simply looking at the paper price and paying no mind to the physical market fundamentals, I want you to watch this for the greater, macro discussion.

Christine does an excellent job of breaking down into understandable terms the fallacy of the current BankofJapan and Shinzo Abe yen devaluation plan. After watching this video, not only will you understand why Japan is doomed, you'll also be able to apply much of the same rationale to the United States.

Further, think about the warnings from Jim Willie of the "Treasury Market Tower of Babel" and how global, sovereign debt is going to create a "black hole" that will eventually suck in almost all available capital as rates collapse to zero and even go negative.

So, don't just absorb the information presented here. Chew on it. Digest it. Really think about the global implications, not just Japan, as the entire globe rushes to debase and devalue. Furthermore, if this path to the future is so obvious, what do you expect the Creditor Nations of China, Russia, India and others to do? Just sit idly by or would you expect them to have their own plan? If Christine Hughes can see this coming from her office in Toronto, we must assume that President Xi can see it from Beijing, too.

[YOUTUBE]http://www.youtube.com/watch?v=AR3TyfKTeNE&feature=player_embedded[/YOUTUBE]
 
Elliott's Paul Singer:

•Short Argentina
•What we have in "legacy countries" is "long-term insolvency"
•World central banks have "reveled in the role" of being the only stimulators of growth
•The ultimate question for a fiat money regime is at what point does confidence in money disappear?
•We now have a "poisonous atmosphere" in which to "rely on the private sector" to create growth
•The world needs growth through innovation and entrepreneurship that's not zero-sum
•Ordinary person not experiencing Dow at 15000

Hayman Capital's Kyle Bass:

•On Japan: "You have to be ****ting me, you're adding a ponzi scheme to a ponzi scheme."
•Country is "on tilt"
•BOJ: What they're doing is about 70% of what the Fed is doing for an economy 1/3
•Yen will get in to the 120s the next couple of years.
•Mindsets are changing - "The beginning of the end has begun.""
•Dex Media (DXM) debt will be worth par, equity will trade at 5x today's price in 3 years.
 
For those that think deflation will win there is one problem with that....

You can't tax deflation
 
Patience for the story to unfold will be rewarded in multigenerational wealth.
20130507_golddow.jpg
 
Oh my god, it's a conspiracy!

Reinventing Bretton Woods Committee

15 April 2013
Global Finance in Transition conference to take place in Istanbul
On May 7-8, 2013, Istanbul (Turkey) will host the Global Finance in Transition conference. The event is organized by the Central Bank of the Republic of Turkey jointly with the Reinventing Bretton Woods Committee and the Russian Ministry of Finance.

Representatives of G20 finance ministries and central banks, international organizations, research institutions and businesses will take part in the conference. Head of Turkey's Central Bank Erdem Basci, Deputy Minister of Finance of Russia Sergei Storchak and Executive Director for the Reinventing Bretton Woods Committee Marc Uzan will give the opening remarks at the conference.

Five panel discussions are planned as part of the event. They will cover the international financial architecture, in particular, changes in the flow of global investments, local bond markets and growth in emerging economies, incentives and determinants of investment and other issues. In addition it is expected that new instruments and incentives for making the global financial system safer will be suggested during the forum.
 
http://captaincapitalism.blogspot.com/2013/05/the-mathematical-impossibility-of.html

The Mathematical Impossibility of Retirement by Aaron Cleary

Permit me some really rough mathematics.

In my introductory course to basic personal finance and investing, one of the first things I have my students do is go to this website and calculate how much they need to save for retirement. It's a good exercise for everybody to go through, but the primary point is that (if you tinker with the calculator) you'll realize each person needs roughly $1 million in savings to retire.

With 6.5 billion people in the world that ads up to $6.5 quadrillion (the number after trillion) in required savings to invest.

Now, I'll grant you "retirement planning" and things like 401k's and RRSP's are really more of a western phenomenon and most people in 2nd and 3rd world countries don't have retirement plans, so let's just say the roughly 1 billion people in countries where they do have some kind of retirement program need to save up for retirement.

That brings the total amount of required savings down to $1 quadrillion.

Just one problem.

There isn't $1 quadrillion worth of stocks or bonds in the entire world. Matter of fact, according to the World Federation of Exchanges, there's only about $55 trillion in equity and $82 trillion in bonds, leaving us with $137 trillion in securities, only 14% of the total amount required to finance the retirements of 1 billion people (it is duly noted here there are other securities, however, bar commodities, things like mutual funds and ETF's are merely compositions of stocks and bonds. I admit we could throw in the commodities market and REIT's, but you'll soon see the point I'm trying to make).

There are some other problems as well.

First, the majority of the $137 trillion in securities is owned by the richer classes. It is not equally spread out across the 1 billion westerners. So the average 401k schmoe is less likely to have the $1 million in his account.

Second, though primarily held by 1st world nations, some of that $137 trillion IS held by 2nd and 3rd world countries. In other words, the above optimistically assumes all the stocks of the Shanghai stock exchange are held by westerners solely for their precious little 401k plans which simply is not the case (heck, foreigners hold most of our debt anyway).

Third, the bond market has a ton of debt that is, frankly, never going to be paid back and be defaulted upon. $16 trillion (intra government holdings duly noted) alone of which is the US federal government and roughly an equivalent amount in those kick-the-can-down-the-road socialist utopias in Europe that are currently already defaulting.

So of that $137 trillion, can we roughly assume only a third of it is going to go to help finance people's retirement plans? So roughly $46 trillion, i.e. 95% short of the amount necessary for people to retire.

Now there is one other variable I have not accounted for (and, truthfully, am having some difficulty figuring this one out, but I think I have it pegged, though would appreciate any criticism or thought on it)

Not everybody is going to retire on the same day.

As the 401k Clergy will rush to point out,

"See!!! See!!! The stock market goes up though! You're not assuming any growth! You're assuming everybody cashes in today when they will in fact amortize out and we all know the stock market will go up by the magical amount to pay for everybody's retirement! See!! See!!!"

And they're right. Not everybody is retiring today and the markets will grow. So let's do a little more (admittedly rough) math. The magical $46 trillion needs to grow into $1 quadrillion to pay for the current 1 billion westerners' retirement plans. And while these people vary in ages from new borns to nearly dead, assume 35 years for the markets to grow (half of people's life expectancy to roughly approximate the old and young). We'll also optimistically assume an 8% annualized growth rate, meaning the market will increase roughly 15 fold in those 35 years. Even with this idealistic scenario (where governments never default, corporations provide annualized returns of 12%, there's no inflation, and Obama's Magical Job Unicorn farts out jobs), the total global market capitalization for stocks and bonds will be....

$665 trillion.

Still about 35% short of the total.

Now, again, this was VERY rough mathematics and I'm sure somebody will find something wrong (and please do inform me if you do), but using this very rough litmus test it shows once again conventional retirement planning is flawed. The amount of growth necessary in the capital markets will not be sufficient enough to pay for everybody's retirement. And it is not even so much the rate of growth in the prices of stocks and bonds will be inadequate, but rather the increase in earnings, profits, dividends, and solvency of bond issuers will not be there to legitimize or rationalize current prices. In English, this means as people flood the market with retirement dollars P/E ratios will go up, dividend yields will go down, and financial deadbeats (in the form of most western governments) will continue to borrow money at low rates they will never be able to pay back.

People who are planning for retirement need to consider other forms of retirement beyond their IRA and 401k's. They need to look at skills, property, commodities or just working till they're dead. Not just because they didn't save up for retirement, but because the prospects for growth just isn't there.
 
Gold%20Money%20Index%20Q2%202012.jpg


Eric King: “If gold and silver are forming a major bottom and putting an end to this bear phase in the metals, where do we go from here longer-term?”

Turk: “My view is that we are in a fiat currency bubble, in other words currency backed by nothing. If you look at history, whenever you have these kinds of periods where people think they can come up with some new kind of currency, it’s absolutely crazy some of the harebrained schemes (people come up with).

What we have now is another harebrained scheme that says currency can be backed by nothing except government promises. But when you take gold out of the monetary system, what monetary history always shows is that you remove the monetary discipline from government spending.

We are in an environment now where the government is spending more and more money, borrowing more and more money, the central bank is turning that money into currency, and eventually this is going to lead to hyperinflation....

“I was looking at the cash flow situation of the US government. Back in the 1990s and in the first part of the century, the government was spending, in gross interest expense, approximately 20% of all of the revenue that was being received.

Now, even though the debt has gone up, because interest rates have gone down we’ve dropped to about 14% or 15% of revenue being spent, but it looks like it’s starting to turn. The new debt being added to the US government and the interest rate burden which is resulting from that is now starting to go into the power of compounding.

In other words the government looks like it’s probably at the stage where it needs to borrow just to start paying interest. When that happens you are in the early stages of hyperinflation. Maybe that’s what the stock market is telling us because when you do have hyperinflation, you see the stock market going up and up, not because of valuations, but because people are exiting the currency.

So, to answer your question, Eric, longer-term my targets are still very much in place. My GoldMoney Index shows that the fair value of gold is now $12,000 per ounce. If we get anywhere close to that and the gold/silver ratio falls down to 20, which is closer to historical norms, we are talking about a silver price of $600 per ounce.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/10_Turk_-_Incredible_Chart,_Look_For_$12,000_Gold_%26_$600_Silver.html
 
"The gold paper architects and craftsmen have control of the publicized Gold market. They do not have control of the physical Gold market, and are actually cutting their throats in accelerated fashion. The Eastern players are grabbing at the opportunity to secure gold bars at any price, wherever it is available. The global cupboards are turning bare. Tiberius reports that Russia & China have been very heavy buyers after the price dip through their central banks. See the Red Lion Trader article (CLICK HERE). The victims are those naive and reckless investors who insist on remaining in the leveraged paper gold arena (ignored MF-Global warning), and the unfortunate few who depend upon small gold sales to fund household expenses and specific projects. The scale of the selloff was incredible, only to accelerate on Monday April 15th for a climax event timed exactly with the income tax deadline in the United States. No coincidences occur in this great game of global fascist chess."

"Hat Trick Letter Issue #109"
Jim Willie, GoldenJackass.com, 4/21/2013


"Printing money by the trillions of dollars has had the predictable effect of raising the prices of stocks and bonds and thus reducing the cost of servicing government debt. [...] But it is like an addictive drug, and we have a hard time imagining the slowing or stopping of QE without large adverse impacts on the prices of stocks and bonds and the performance of the economy. If the economy does not shift into sustainable high-growth mode as a result of QE, then the exit from QE is somewhere on the continuum between problematic and impossible.

"At some stage, central banks inevitably realize, regardless of whether they admit the catastrophic nature of their own failings, that the cessation of money-printing will cause an instant depression. Even though at that point the cessation of money-printing may be the only action capable of saving society, that becomes a secondary consideration compared to the desire to avoid immediate pain and blame."

"The Fed, Lost in the Wilderness"
Paul Singer, CEO Elliott Management Corporation, 5/3/2013

Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported April 16, 2013
1.47% / 9.12%

U.S. Unemployment reported May 3, 2013
7.6% / 23%

U.S. GDP Annual Growth/Decline reported April 26, 2013
1.67% / -1.98%

U.S. M3 Growth reported May 3, 2013 (Month of April, Y.O.Y.)
No Official Report / 4.34% (e) (i.e, total M3 Now at $15.111 Trillion!)
 
LAND OF THE DYING SUN: JAPAN'S LOOMING DEBT CRISIS

http://prospectjournal.org/2013/05/09/land-of-the-dying-sun-japans-looming-crisis/

By Nolan Weber
Senior Editor

Work-a-day meth addicts can keep it together for a time—and they may even get a lot of stuff done. Hey, look at Christopher Walken. He managed to earn a small fortune staying alive for countless rounds of Russian Roulette in The Deer Hunter. Granted he wasn't a speed addict, but the fact is, no matter what, unsustainable situations always crash—hard.

That might as well be the case with Japan. The confluence of factors impending over its eventual demise retain such a serious tone, it is hard not to fear for the nation's long-term governmental stability. From energy to fiscal to monetary policy, Japan finds itself between a rock and a hard place on every front.

In the wake of the Fukishima Nuclear Disaster, Japan has halted the production of all nuclear power—reducing domestic energy production by 30 percent of pre-Fukishima levels. Japan now has to import fossil fuels to make up the difference. With national debt at 230 percent of GDP and a budget deficit of 56 percent of GDP, Japan currently has to grapple with negative economic expansion while producing domestic energy at heavy loss. Indeed, Japan has entered a deep recession given its economy is contracting at an annualized rate of 2.3 percent.

Furthering disconcerting sentiment, Japan currently allocates 25 percent of its budget to simply service the interest on its debt.To keep itself afloat, the industrial titan is seeking to devalue the yen to maintain its manufacturing-based, export-driven economy. Yet, by debasing its currency Japan is destroying its citizens' wealth. The people of Japan, more than any other developed nation, buy their own government bonds—Japanese debt. Consequently, citizens are primed to see negative returns on their investment and realize a dystopian retirement if the Bank of Japan tries to print its way out of this predicament.

The Bank of Japan certainly cannot deflate. If policy is set to strengthen the yen, their economy will shrivel in the face of Japan's need to export. It is a resource poor nation. It imports 90 percent of raw goods, yet, historically, it has done an excellent job in generating wealth by creating usable products out of raw materials. However, if the Bank of Japan decides to let the yen appreciate in value, the manufacturing upon which the country depends will be priced out of the market.

We don't have a place in history to reference where a decades-long, recession-stricken country has suddenly lost 30 percent of its energy output and forced to survive. Will Japan collapse? I don't know. But what I do know is the Bank of Japan has clearly adopted a policy of currency debasement–printing. To that end, there has been no nation that has been able to print its way to prosperity. Indeed, people orders of magnitude smarter than myself are trembling at what will happen next.
 
I found this on page 145 of Canada's 2013 budget plan:

"The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult
stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants."

http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
 
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The world situation is deteriorating. Nasty things are in the pipeline, probably within 6 months.
 
http://www.nakedcapitalism.com/2013/05/russias-plan-for-the-brics-to-dismantle-the-dollar-system.html


"The language used in this document indicates that it has been written or strongly influenced by Sergei Glaziev, the president's economy advisor, who is known for masterminding the economic aspects of the Eurasian Union between Russia, Belarus, and Kazakhstan. Glaziev has repeatedly accused Fed Chairman Ben Bernanke of starting "a currency war" against the emerging markets. He also believes that Bernanke's policy will ultimately lead to a military confrontation: "the conservation logic of the current financial and political system leads to a further escalation of military and political tensions, including the start of a major war" (read more)."

"A whole chapter of the strategy document is dedicated to step-by-step instructions on dismantling the existing global financial system. The list of measures includes:

•Reformation of the world currency system in order to create a representative, stable and predictable system of world reserve currencies;
•Reduction of the risks of destabilization of currency and equity markets linked to massive cross-border flows of capital;
•Increasing the use of national currencies in the trade between BRICS countries;
•Increasing the level of cooperation between BRICS countries in order to promote their interest in the domain of world trade;
•Strengthening the BRICS Exchange Alliance;
•Creating independent rating agencies."

Sure sounds like gold is coming into the system

After reading that article listen to Karen Hudes:
World Bank Whistle-blower: "Precious Metals To Serve As An Underpinning For Paper Currencies"
http://bullmarketthinking.com/world-bank-whistle-blower-precious-metals-to-serve-as-an-underpinning-for-paper-currencies/

It's Happening
 
GrumpsLabastard said...

Think of the price of gold as a thermostat for the financial system and the value of gold as a transverse dimension to this system like the imaginary axis in mathematics.

During most of the life cycle of the system a real positive interest rate is possible, the POG is stable or even dropping and the value of gold is stable or dropping. Much of the savings/capital is in real financial space.

As the system reaches debt saturation, that is a real positive interest rate cannot be tolerated, the thermostat function of gold reflects this state. The SoV function of gold is activated as savings/capital flee real space to imaginary space. System implodes.

A new system is put in place with a new thermostat(higher POG). Savings can re-enter real financial space again as a real positive interest rate can exist.

I think this is what Blondie stumbled upon. The function of SoV flows with time. The Flow of Value.
 
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