Sunday, June 12, 2011

On The Edge - with Peter Schiff

Gerald Celente on The Alex Jones show

Truth about Markets

Max and Stacy's weekly radio show....listen here

Dr. Manning Interviews Douglas Vogt, CEO of Archive Index

Libyan update - Tell NATO WWII is over

Gold could hit $1,650 this summer - John Embry

Problems in both the U.S. and Europe as well as continued growth in investment demand are some of the reasons why Sprott's John Embry believes gold is likely to have a good summer.......listen to the interview here.

Japan nuclear update - Protests in Toyko

US govt knows Iran has no nukes - it's 'Iraq syndrome'

RT is very perceptive in labeling the US stance on Iran "Iraq syndrome". This situation is no different to the search for WMDs in Iraq. I have a close friend who led one of the UN teams, reporting to Hans Blix, that searched for WMDs in Iraq prior to the 2003 invasion. He told me that everyone knew that there were no WMDs even before they stared looking, either they never existed, were destroyed or became unusable during or shortly after Gulf War I. He said it was the greatest govt. gig he had ever scored, driving around the countryside with a team of 4WDs looking for something he knew was not there.

From: RussiaToday | Jun 11, 2011

Washington is ignoring its own intelligence because it is hell-bent on finding nuclear weapons that do not exist, Pulitzer-winning investigative journalist Seymour Hersh told RT.

Anonymous takes on the Fed and Bernanke

Gold Rises to Record £950.81 British Pounds an Ounce

From Goldcore:

Gold has risen to new record nominal highs in British pounds and is consolidating just below recent record nominal highs in U.S. dollars, euros and other currencies. The ECB’s rate decision and Trichet’s ‘signals’ saw the euro fall sharply against the dollar and against gold with gold in euro terms quickly rising from €1,050/oz to over €1,065/oz.

The fact that these new record highs are just nominal and not more important adjusted for inflation highs is a crucial fact not acknowledged by many commentators and analysts. As ever, it is important to realise that the inflation adjusted high for gold in 1980 is over $2,400/oz.

The ECB, like the Bank of England, left interest rates near historically low levels. Trichet signaled that interest rates may rise by 25 basis points in July but that ECB monetary policy will remain extraordinarily accommodative. Markets scaled back expectations of rate rises beyond July which is bullish for gold.

It is only when interest rates rise above the real rate of inflation and savers, pensioners and those dependent on fixed income are given a real return on their capital that gold and silver’s multiyear rise may come to a halt.

This will not happen in the short term as central banks know that any meaningful increase in interest rates will lead to a double dip recession and risks a sustained, long-term downturn in economic activity globally.

It could also lead to further banking crises and contagion in the already vulnerable international financial and monetary system.

When interest rates do rise, central banks will have to make them very gradual. With inflation and stagflation deepening, negative real interest rates are likely to remain with us for some time which bodes well for gold (and silver).

The Titanic analogy grows increasingly apt. The various major currencies all face real challenges and are like various floors on the Titanic. The massive ship is holed and water is flowing into it, gradually affecting all floors of the boat.

Gold represents the lifeboat.

When the passengers on the various currency floors (the dollar, euro and pound floors) realize that the ship is going down there will be a scramble to get into the golden lifeboat.

Gold and silver bullion remain tiny markets vis-à-vis equity, bond and currency markets and are thus like lifeboats which can only fit so many passengers.

As the ship of the international monetary system flounders and denial is replaced by a realization that the ship is going down, investors and savers (retail and institutional) and central banks, will “pile” into gold.

Gold bullion remains owned by a tiny percentage of retail and institutional investors and there has not been any “piling into gold” yet - contrary to some sensationalist reporting. The risks posed to all fiat currencies and the real risk of an international monetary crisis will likely lead to a gold mania phase when investors and savers do actually pile into gold.

This is when gold will likely go parabolic in price as it did in the 1970s when it rose 24 times in 9 years.

Gold’s gradual rise in recent years is in stark contrast to its parabolic rise in the 1970s – particularly in 1972, 1973, 1974 and 1979.

Gold surged by 49.7% in 1972, 73.5% in 1973 and by 60.1% in 1974. In the final phase of the bull market in 1979, gold surged 140% in one year. Gold’s recent rise has been tame in comparison with the animal spirits remaining subdued and media coverage remaining very limited and skeptical – especially in the UK and Ireland.

As ever, it remains prudent to hope for the best monetary and economic outcomes but be prepared for less benign scenarios.

Jim Rogers - Short Paper, Long Stuff

US Companies no longer need US Workers

From: RTAmerica | Jun 11, 2011

A recent poll revealed that almost half of the US thinks another great depression is on the horizon. Why are Americans expecting another economic disaster? Political columnist Harold Meyerson gives his take on how to keep America afloat.

Libyan update - Going for Gold

by on Jun 10, 2011

NATO is continuing its barrage of the Libyan capital, with no sign there will be any let-up until Colonel Muammar Gaddafi goes. Western and Arab countries are showing their support for the Libyan opposition by pledging more money. The rebels say they need $3 billion over the next several months to pay salaries and buy supplies. Although the rebels have managed to get financing from their first oil exports to the US, writer and filmmaker Patrick Henningsen believes the oil business coming out of Libya is not the main driver of this NATO operation.

Bilderberg group meets in St. Moritz

by on Jun 10, 2011

An invite-only meeting of the world's political elite and financial magnates, the Bilderberg group, is underway in Switzerland. The annual event has long been shrouded in secrecy, something that's given rise to a strong protest movement