Friday, February 24, 2012

Weekend Chillout - War is a Racket edition

With hot war in Syria, cold war in Iran and potential civil war and military coup in Greece at the moment it seems peace is not going to get a chance for some time to come. This weekend's chillout hopes there is some outcome that brings us back from the abyss.

Nigel Farage on Greece, Iran and Freedom

Former gold trader and current Euro politician Nigel Farage discusses the Greek tragedy and its potential flow on effects with Eric King of King World News. Listen here

Clarke and Dawe - Solvency in Our Time

ClarkeAndDawe | Feb 22, 2012

India Silver Imports May Top 5,000 Tons in 2012


MUMBAI -- India's silver imports may top 5,000 metric tons in 2012 due to strong investment demand, Prithviraj Kothari, the president of the Bombay Bullion Association, said Tuesday.

The country imported around 4,800 tons of silver last year, he said.

"Silver demand is expected to rise on firm industrial and investment demand," he told reporters on the sidelines of a conference.

Though demand for silver may not pick up in the next few weeks as returns from debt instruments are better than that from silver, investment interest in the white metal is expected to grow as and when the country's central bank starts lowering lending rates, Mr. Kothari said.

Such a move is expected to boost an economic recovery and, in turn, silver usage as the precious metal finds as much application in industrial goods as in jewelry, coins and artefacts.

Read more

For a historical perspective on Indian Silver imports from 2007 - check out the silver and gold prices back then:

Silver plays catchup

Silver in over night trading has managed to break out of its month long range of $33 - $34, at one point hitting $35.50. Likewise gold has maintained its break made yesterday, currently gold is trading at $1780.

Not surprisingly the Gold to Silver ratio has also fallen to approx 50:1. Of course this is nowhere near the historical norm of 12-16:1 or the more important current mining ratio of 9:1 but at least it is heading in the right direction for the silver bugs.

Pact With the Devil Over Gold

By Mish:

The one and only thing that might possibly spare Greece the agony of a completely worthless currency is Greece's small hoard of 111 tons of gold.

Pact With the Devil

Yet, in the fine print in the latest deal, Greece’s lenders will have the right to seize its gold reserves according to the New York Times article Growing Air of Concern in Greece Over New Bailout.

In the fine print of the 400-plus-page document — which Parliament members had a weekend to read and sign — Greece relinquished fundamental parts of its sovereignty to its foreign lenders, the European Commission, the European Central Bank and the International Monetary Fund.

“This is the first time ever that a European and probably an O.E.C.D. state abdicates its rights of immunity over all its assets to its lenders,” said Louka Katseli, an independent member of Parliament who previously represented the Socialist Party, using the abbreviation for the Organization for Economic Cooperation and Development. She was one of several independents who joined 43 lawmakers from the two largest parties in voting against the loan agreement.

Ms. Katseli, an economist who was labor minister in the government of George Papandreou until she left in a cabinet reshuffle last June, was also upset that Greece’s lenders will have the right to seize the gold reserves in the Bank of Greece under the terms of the new deal, and that future bonds issued will be governed by English law and in Luxembourg courts, conditions more favorable to creditors.

Keiser Report: Burning Bankers Pays

RussiaToday on Feb 23, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss Lloyd Blankfein's suicide twinkie vest, Iceland's parliamentary pelting, manipulation of Libor rates and rampant foreclosure abuse. In the second half of the show, Max talks to Shir Hever about price tagging in Area C of the West Bank and about destroying the competition in Gaza.