Third Hindenburg Omen

From ArabianMoney.net: US stocks rallied on Friday thanks to weasel words from Fed chairman Ben Bernanke after a dismal week with a dip below 10,000 on the Dow. The S&P 500 ended lower for the third week in a row. Tuesday saw the third Hindenburg Omen, the classic chart signal of an impending crash based on a complex analysis of trading movements.

You might ignore one Hindenburg warning but three? ArabianMoney announced the first on August 12th (click here). But we prefer to stick to fundamental analysis rather than look for zepplins crashing in the charts.

Here the picture is surely just as clear. The stock market continues to price in some kind of recovery while the economic indicators increasingly point to a double dip recession.

Remember the summer of 2008 and the way economists upped the ‘possibility’ of a recession to 30 per cent. They are at it again, apart from old Albert Edwards at Societe Generale whose bearish vision makes Marc Faber look an optimist.

Mr Bernanke’s touching commitment to save the US economy has also been with us for a long time, and it has not worked to date, although things might have been very much worse.

Bond yields are at record lows. Money is shifting into gold and silver with gold bullion purchases up 40 per cent this year. Share prices rose on thinner and thinner volumes this summer. The day of reckoning is coming. Indeed, the Hindenburg Omen suggests it is happening now.

Gold Chart

Thanks to Jesse's Cafe Americain for the chart

Short the Dollar and go Long Gold

Max and Stacey discuss the last Ponzi scheme - War. Max informs us that China, Russia & Iran are buying up the world's gold supplies to hedge against the coming fall of the US$

Iran gold imports hit 22 tons in four months

Tehran Times Economic Desk

TEHRAN – Iran imported over 22 tons of gold ingots worth over $855 million in the first four months of the current calendar year (started march 20, 2010).

The amount shows 85,000 percent increase in terms of volume and 81,000 percent rise in terms of value in comparison to the same period previous year, ISNA News Agency reported.

The figure accounts for 4.64 percent of Iran’s total value of imports during the mentioned period.

Turkey, Russia, and the United Arab Emirates were the main exporters of gold to Iran.

Iran imported $1 million worth of gold during the first four months of previous Iranian year

World Gold Council Report

The World Gold Council released its Gold Demand Trends publication for the second quarter of 2010 and highlighted the massive growth in investment demand, including a 414% jump in gold ETFs.....listen to minweb report

Every Solar Storm has a Silver (and Gold) Lining

An interesting story about a potential mega Solar storm causing massive disruptions for telecommunications and IT equipment. With most of the world's "wealth" being stored as zeroes and ones on a hard drive at a bank's computer centre and only accessible by telephone and microwave links it might be wise to have some of one's wealth stored in hard copy form of gold or silver.

AFTER 10 years of comparative slumber, the sun is waking up - and it's got astronomers on full alert.

This week several US media outlets reported that NASA was warning the massive flare that caused spectacular light shows on Earth earlier this month was just a precursor to a massive solar storm building that had the potential to wipe out the entire planet's power grid...read on

Desperation of QEII

By Jim Willie: History is being made. The American public has never been so nervous, perhaps fearful of something dreadful and imminent. The global monetary system is crumbling. The typical stimulus has failed to jumpstart the USEconomy. The 20 months of near 0% short-term official interest rate has failed to revive the moribund US housing market. The fraudulent FASB accounting rule allowance has only succeeded in delaying the demise for the big US banks, which do not lend much, but do continue to benefit from USFed liquidity facilities. Witness the failure of the US financial sector. Witness the climax chapter of failure for the Fascist Business Model. The US banker brain trust, which possesses only a modicum of economic wisdom, analytic prowess, or foresight, finds itself in a desperate corner. Their talk of an Exit Strategy in the last several months was summarily dismissed as nonsense, propaganda, and wishful thinking by the Jackass here on a consistent irrefutable basis. The US Federal Reserve is ready to embark on the second round of Quantitative Easing. The monetization of US$-based bonds of many types will be done on a second initiative, on cue. Here is the irony, the insanity, the recklessness, the tragedy. What failed, they will do again, maybe even bigger! At risk is global confidence and trust of the United States, hardly a zero cost item.....read on

Gold Demand to Soar in Vietnam as `Shelter' From Devaluations, Stock Slump

Report from Bloomberg News on the USA's newest best friend, Vietnam and how 40 odd years in the Communist workers paradise has sent the said workers scrambling to the freedom offered by gold:

Gold demand in Vietnam, which consumes more of the precious metal per head than India and China, is set to surge as the third devaluation in the past year and a stock-market slump combine to spur sales.

“People will switch to gold as a shelter,” said Le Xuan Nghia, vice chairman of the National Financial Supervision Commission, which advises Prime Minister Nguyen Tan Dung. “The current situation with the dong will spur people to increase their gold holdings.”

The government devalued last week to boost exports and shore up the nation’s trade deficit, driving the dong to a record low.....read on

Richard Russell on Gold

Gold is the only real Constitutional money. The fiat paper that we've been using as money is only money because our government says "it's money." If the US government told you that printed paper was real money and legal for the payments of all debts, would you believe them. Well, you already have believed your government.

But I maintain that the truth will out, and that fiat paper is a fraud that will be found out. When that happens and people realize that they have been hoodwinked by their government, there will be such a rush (including both fear and greed) for gold that it will make the recent tech mania look like conservative investing.....read in full

British Gilts vs Gold, - Vying For "Safe Haven" Money

By Gary Dorsch: "I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain's money supply controls the British Empire, and I control the British money supply," declared Baron Nathan Mayer de Rothschild, - once the richest man in Europe. In 1840, NM Rothschild was appointed as the bullion broker to the Bank of England, and went on to operate the Royal Mint Refinery in 1852. Nathan gained a position of such enormous power in the City of London that he was able to supply enough money to the Bank of England to enable it to avert a market liquidity crisis.

Nowadays, the Bank of England (BoE), - also known as the "Old Lady" of Thread-needle Street, - has full control over the British money supply, with a monopoly on issuing banknotes in England and Wales. It also controls what's left of Britain's badly depleted gold reserves. In May 1997, the BoE was granted the autonomy to conduct monetary policy, and with it the power to set interest rates.....read on