“You have the choice between owning fiat currency and owning real gold. And I think right now the only thing that’s keeping gold from going ballistic is the false belief that the FED is the lone holdout in this race to the bottom, that the FED is out of the QE business and is going to be raising rates, and when people find out that is wrong and when they find out that we’re going to do more QE than Japan and Europe combined, they’ll realize they’ve jumped out of the frying pan and into the fire.” – Peter Schiff, CEO, Euro Pacific Capital
The global financial system has come unglued. Everywhere the real world evidence points to cooling growth, faltering investment, slowing trade, vast excess industrial capacity, peak private debt, public fiscal exhaustion, currency wars, intensified politico-military conflict and an unprecedented disconnect between debt-saturated real economies and irrationally exuberant financial markets.
Yet overnight two central banks promised what amounts to more monetary heroin and, presto, the S&P 500 index jerked up to 2070. That is, the robo-traders inflated the PE multiple for S&P’s basket of US-based global companies to a nose bleed 20X their reported LTM earnings.
And those earnings surely embody a high water mark in a world where Japan is going down for the count, China’s house of cards is truly collapsing, Europe is plunging into a triple dip and Wall Street’s spurious claim that 3% “escape velocity” has finally arrived in the US is soon to be discredited for the 5th year running.
After CBS News aired a damaging report which suggested Attorney General Eric Holder had lied to Congress, the Department of Justice’s (DOJ) press director worked overtime to suppress reporter Sharyl Attkisson’s story and called her CBS superiors to complain.
Attkisson published a blockbuster story on October 3, 2011, based on documents which demonstrated that AG Holder was briefed on the Fast and Furious gun-walking case starting in the summer of 2010. Those documents directly contradicted Holder’s claim that he first heard about Fast and Furious a few weeks before his congressional testimony in May 2011.
Food inflation is raging, Ukaraine’s gold is gone its central bank now admits (stolen and sent to the United States), and the Swiss will soon vote on whether or not to turn back to gold and Sovereignty as the war against the Banksters and their soulless fiat money machine continues.
As Miles Franklin’s Andy Hoffman puts it, “Across the board there’s a war being fought for the physical gold that’s around and for the mental mind share of the world as they seek to remember thousands of years of history up against a short term propaganda and money printing scheme that is clearly in its final stages… Look what’s happening to the currencies around the world – All of them! The average BRICS currency is down 60% in the last three years since the money printing really took off and there’s inflation everywhere in the system. And now we’re seeing succession movements.”
In 2011, as the entire world watched the Arab Spring in amazement, the US and its allies, predominantly working under the banner of the North Atlantic Treaty Organization (NATO) and the Gulf Cooperation Council (GCC), militarily overran the Libyan Arab Jamahiriya.
The peaceful civilian protesters they claimed to be intervening to protect were not really what the US and its cohorts presented to the world. Many of these so-called “protesters” were armed, and when this became apparent they eventually began to portray themselves as “rebel forces.” These so-called “rebels” in Libya were not a military force that emerged spontaneously for the most part, but an insurgency movement cultivated and organised before any opposition activities were even reported in Libya.
After Libya’s rapprochement with the US and the European Union, it was unthinkable to many that Washington and any of its allies could even have been preparing to topple the Libyan government. Business and trade ties between Libya and the US, Britain, Italy, France, Spain, and Turkey had bloomed since 2003 after Colonel Muammar Qadhafi opted for cooperation with Washington. No one imagined that Saif Al-Islam Qadhafi’s “New Libya” with its neo-liberalism could be on a collision course with NATO.
[Ed. Note: We posted this remarkable speech when it was first made public a couple years ago, but a friend sent it to us again today and after re-watching it we felt compelled to re-share it. Victoria's wisdom has been heard by nearly 3 million people in this video alone.]
President Obama’s executive action allowing 5 million illegal immigrants to stay in the US contains a controversial new approach to dealing with aliens who are suspected of committing crimes.
The Secure Communities program, which made it easier for local police to tag suspected criminals as illegal immigrants, is being scrapped. This will have immediate national security consequences, critics and supporters agree.
The president’s defenders say limited government resources will now be spent catching the most dangerous criminals. But conservatives argue that Obama is caving in to political pressure to soft-pedal when it comes to illegal immigrants who commit crimes.
Sheriff Jones represents over 1.4 million people in his county. He is not anti-immigration, but is rather very supportive of immigration. “My relatives, like many other Americans, were immigrants and I truly believe that everyone should have the opportunity to realize and live the America Dream,” he said.
As has already been reported, Moscow has officially informed those countries that took part in the previous nuclear-security summits, held in Washington in 2010, Seoul in 2012, and the Hague in 2014, that it will not be able to participate in the preparations for the fourth summit, which is scheduled for 2016 in the US.
US President Barack Obama is spearheading those preparations.
In the past, Russia has always been an advocate, as it continues to be today, for tightening nuclear security. Since the first summit on this issue four years ago, she has worked tirelessly to prepare for and conduct subsequent high-level meetings of this type. Moscow has also consistently sought to exploit various multilateral venues for negotiation and discussion in order to promote the summary findings of these forums, because she is aware of the importance of the practical implementation of those findings.
In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,200.29 up $11.54 per ounce (0.97%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, rose 4.24%. The U.S. Trade-Weighted Dollar Index gained 0.87% for the week.
Gold Market Strengths: Gold reversed losses after China cut benchmark interest rates for the first time since July 2012. Additionally, Standard Chartered raised its forecast for 2015 average gold prices to $1,245 per ounce, up from $1,160 saying that many of the factors pressuring gold will be neutralized. Standard expects dollar bullishness to fade and worries about deflation to subside.
The mainstream investor (with any time and “money” left), wielding an internet connection, and hell bent for yield is about to feel the temperature drop despite a thousand reminders that the cold winter is coming. (Or perhaps not – if you are in South Florida.)
Zero interest policy scorches the planner and the saver, rotting the seed corn while providing fuel for speculation, breeding the trading culture pestilence we see today. Yet again, another tiresome cycle appears. More bubbles to end all bubbles.
Modern bubble incarnations are fueled by a social media driven propaganda and the same dog and pony we’ve seen over and over. All the cash on the sidelines needs a willing seller to come back in.
I published a research report – My Best Silver Stock Idea – on October 28. As you can see from this relative performance graph, this stock has outperformed the mining stock sector (GDX and GDXJ) (click on graph to enlarge):
The stock has outperformed both GDX and GDXJ by a significant amount since October 28. As you can see from the MFI, there has been a lot of money flowing into the stock.
This Company went free cash flow from its silver mine production during the 3rd quarter. It is in the process of ramping up both its mill capacity and overall production level. It makes money on every ounce produced down to $12/oz on silver. Most silver miners are currently, at best, breaking even on production.
A question posed by a reader has kept my mind churning ever since it was asked. The question itself was genuine and expressed a desire to change the world for the better, but hinted that he was resigned to the fact that it would get worse before it gets better. This is probably the driest article I have ever written, but it may prove to be the most important. It started as a simple list, but grew as I realized the subject matter deserved better treatment than typical guerrilla journalism provides. What started as a simple hit and run piece developed into a guide for thought criminals. (Story by Justin King, republished from TheAntiMedia.org.)
The question: I have just recently opened my eyes to what’s actually going on in our world and especially our country. Had I known then what I know now I wouldn’t have children.
The Great Recession might be officially over on paper, but the social impact continues to be felt today. The structural changes are deep and profound and have caused a major rise in multi-generational households. Many young Americans burdened by low wage jobs and college debt may have no other option but to move back home with parents. The number of people living in such households has doubled since 1980. More than 18 percent of the population now lives in this arrangement. A large push has come from those 25 to 34 given that 1 in 4 now live in a household with multiple generations. Money is tight and rising living expenses including rents have kept many from venturing out on their own. The economy has been adding jobs but many of these jobs are coming from the low wage sector and are simply not providing a base for moving out. This latest election was driven by people unhappy with the economy but also wanting higher wages.
The central banks are buying gold and we are told they are selling gold, how is this possible? Why would this be happening? What purpose does it serve?
Alasdair is of the opinion the central banks are not selling gold but there has been some leasing of gold.
Keith Neumeyer, about three weeks ago, called for the primary silver miners to pick a month in 2015 and withhold production for the month. Wednesday November 19, Jim Otis, in an open letter to all miners is calling for all miners to withhold their precious metals. Mr. Otis goes on to detail what to do, how to do and the impact that it would have on the markets—here is what Mr. Otis had, in part, to say
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