Saturday, August 14, 2010

Naked Shorts As Liquidity Machine

By Jim Willie: The article of July 22nd on "Smoking Guns of USTreasury Monetization" hit more desks, raised more dust, and brought more attention than expected to the heightened malfeasance in progress using USGovt debt securities. The actions continue without any hint of regulatory notice or legal prosecution. The problem is more diverse than just JPMorgan sale of bonds far beyond their existing supply. Sure, the venerable colossus sold more than $2 trillion in USTreasurys than were issued in the 1990 decade. Records no longer exist. The problem goes far beyond the giant bank, which gobbled numerous other banks in the course of its reign, to become an oligopoly cog within the USGovt today. See Chase Manhattan, Chemical Bank, Manufacturers Hanover, and Bank One. Any competent student of financial economics can see that such merger is part & parcel of the Fascist Business Model, with climax merged union with the state, and certain side effect benefits of subterranean license in numerous markets like silver. JPMorgan cannot be fixed by the process any more realistically than an angry man with a vengeful heart can carve out his own cardiac pump in order to enjoy a better day. Thus no solution exists.....read on

Ben Davies interviewed


Ben Davies is interviewed by Eric King and discusses precious metals Exchange Traded Funds (ETFs). Ben highlights the inherent 3rd party risks involved in owning an ETF as opposed to physical gold and the potential that not all ETFs are 100% backed by unencumbered metal.

Although I agree with Ben's risk assessment I wish to disagree about his statement that ETFs are ok for small retail investors because such investors cannot access or access cheaply allocated physical gold accounts. This is not correct, at ABC Bullion any investor who wishes to open an allocated physical bullion account can do so with as little as 1oz of gold, platinum or palladium, or 1kg of silver - that can be less than AUD$700, and better still this account is free of fees, yes the bullion is vaulted and insured for replacement value for free. For more information about allocated physical bullion accounts, regardless of where you are located, please visit our bullion page ---> here.

For the Ben Davies interview.....listen here

Bullion As A Superior Investment


By Jeff Nielson: When most precious metals commentators (including myself) recommend gold and silver to investors, we label it as a means of "Wealth Preservation", or simply as "insurance". Few (serious) commentators talk about bullion as a means of "making money" (above and beyond the rate of inflation).

The reason for this is clear. When one is strongly encouraging people to "play defence" and focus on wealth preservation and "insuring" that wealth, then it is simply inappropriate to advertise precious metals as some sort of get-rich-quick scheme. Nonetheless, investors are naturally curious to know if bullion will 'only' provide them with wealth preservation, or whether they can actually expect real gains in the price of bullion - in other words, does it offer a rate of return above the real rate of inflation.....read on