Entries Tagged as 'USD'

Cyprus To Take 9.9% of Deposits

Markets are really upset this evening at the prospect that depositors in Cyprus banks will have up to 9.9% of their deposits stolen to bail out Cypriot banks.

Some of the best coverage is on Zero Hedge and there’s an up to the moment interview of Andy Hoffman by Kerry Lutz of the Financial Survival Network

This is BIG and Gold is at or near the breakout above $1,600! Jim Sinclair says this is Sinclair – One Of The Most Important Events In History & Gold

Unemployment Numbers Terrible!

Regime President Obama is out today crowing about the direction the country is taking because of his policies. He touts the unemployment rate falling to 8.5% as evidence. Yet Bill Wilson, the President of Americans for Limited Government, looks at the latest numbers and comes to a sobering conclusion:

“…the number of unemployed is actually closer to 17 million instead of the 13 million reported jobless.

Instead of 8.5 percent, the effective unemployment rate should be closer to 10.9 percent, and the underemployed closer to 17.4 percent, or 27.3 million.”

Wilson says what we need to get the economy moving is the following:

  • the government needs to slash corporate tax rates, which are the highest in the world of advanced economies.
  • It is imperative that the regulatory overkill come to an end.
  • The dollar needs to be strengthened to lower costs and stabilize energy and food costs.
  • The debt needs to be paid down and retired, and the budget balanced.
  • Onerous federal securities laws and state-by-state blue sky laws need to be repealed that make it cost-ineffective for new businesses to raise capital.

Yeah, like that’s going to happen anytime soon!

Biden Calls Corzine

Biden says after the new regime took over they talked about a “Bank Holiday.” That’s when they close the banks, devalue the currency, and then let you have some of that new currency. Then he says they called Jon Corzine, formerly of Goldman Sachs, for financial advice. Financial advice from a man who just ran MF Global into the ground and stole over $1.2 billion of investors money.

Now Gerald Celente tells us to expect a “Bank Holiday” in the first quarter of 2012. You can listen to Celente at King World News.

Currency Wars

Jim Rickards discusses the gold standard and his book “Currency Wars: The Making of the Next Global Crisis.” He speaks with Deirdre Bolton on Bloomberg Television’s “Money Moves.” James Grant, publisher of Grant’s Interest Rate Observer, also speaks.

Americans Pay Attention!

Mish Shedlock has an excellent analysis of the risk of a bank run rising in Greece. If I’m seeing the future correctly, next up is Spain, Portugal, Italy, Ireland.  Then we move on to France and the UK and then the U.S.  Why will Greeks want to take their money out of Greek banks? Mish writes:

If Greece is ever forced to leave the euro, it will first have to redenominate domestic corporate and household liabilities into the new currency – let’s call it the drachma – or else domestic borrowers will be wiped out by the fall in the value of revenues relative to debt as the drachma immediately depreciates against the euro.

But it doesn’t end there.  If a bank’s assets – its outstanding loans – are to be redenominated into drachma, then its liabilities, i.e. deposits, must be redenominated too, or else the balance sheet mismatch will bankrupt the bank.

And there is where the problem lies.  As soon as any depositor realizes that bank deposits are likely to be redenominated into drachma, he will pull his deposits out of the banks so as to protect the value of his savings.

What can the Greek authorities do to protect the banks from bank runs? Why close the banks, Have a bank holiday, change the currency and then reopen them. And you know who is getting screwed! If that is going to happen in Greece or happens, it will put the fear of loss into citizens of Spain, Portugul, Ireland, and Italy and they will run to withdraw their capital from the banks.

Where does that money go? To the next safest fiat currency or Gold and Silver.

Mish suggest Christmas is a perfect time to close the Greek Banks. It’s just a matter of time before capital controls come to America.

Now Or Eventually?

Bev and I spent an enjoyable weekend with our friends Bill and Connie at Neskowin. Plenty of food, drink and conversation. Just plain relaxing with walks thrown in on the sand or through the town. One big difference between Bill’s and my outlook for the U.S. economy is time. He thinks eventually we will end where Greece is now, bankrupt, if we continue on our present fiscal and monetary path. There is still time to pull out of our nosedive. We just need the political will.

I don’t see any political will to cut trillions from our spending that can overcome the anger from the public once they see their programs being cut. I think it is too late. We both like Gold. He is not willing to guess how high the high is for Gold and it may take years saying the high is unknowable. I on the other hand think we could go parabolic and the endgame is over the next year and a half. I base part of my reasoning on the following chart:

(Click on to enlarge)

If we stay in the current uptrend, we will look like the period from 1970 to 1980 and the top is up near $10,000 in 2012. What’s the risk if I’m wrong? You own lots of Gold before everyone else. What’s the risk if he’s wrong? Anything denominated in dollars vanishes like the memory of summer heat in November.

Jim Sinclair Speaks!

Jim Sinclair interviewed by James Turk

Republicans Sell Out, Markets React

The stock market closed down 265 and Gold closed up almost $40! From the NIA:

Although NIA was praying that the debt ceiling bill would be voted down, we told you that it would definitely pass and today it was approved by the Senate and President.

Even with the debt ceiling bill passed, the world is waking up to the fact that the U.S. economic recovery is phony, which sent the Dow Jones Index down 265.87 today to 11,866.62. With the Dow Jones in decline we can pretty much guarantee that Bernanke is preparing QE3 in disguise, which could set the stage for hyperinflation to arrive sooner than we originally expected.

As we did expect, gold today rose $37.50 to a new all time high of $1,659.20 per ounce and silver was up $1.476 to $40.785 per ounce.

On January 4th with the Dow Jones/Gold ratio at 8.1, NIA predicted that it would make a major decline in 2011 down to 6.5. We are only into the eighth month of the year and already after today’s trading the Dow Jones/Gold ratio is now down to 7.15. NIA remains very confident that its forecast for the ratio to reach 6.5 this year will indeed come true.

Also on January 4th with the Gold/Silver ratio at 46, NIA predicted that it would make a major decline in 2011 down to 38. The Gold/Silver ratio is now down to 40.68 and at one point earlier this year NIA’s prediction did come true and the Gold/Silver ratio not only declined to 38 but it fell as low as 30.50. When the Gold/Silver ratio reached 30.50 we said that silver got ahead of itself and would dip, which it did. For the rest of the year we expect silver to slightly outperform gold and for the ratio to once again decline to 38.

NIA’s latest gold stock suggestion from 11 weeks ago Mega Precious Metals (TSX Venture: MGP) is looking very strong and closed today at $0.59 up 59% from our May 18th suggestion price of $0.37. The Dow Jones is down 5.5% from May 18th until now and not many stocks are up 59% during this time period. We continue to believe that MGP is undervalued with huge long-term upside potential.

Please remember that NIA is not an investment advisor and you should never make investment decisions based on anything we say.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

The Chinese And Indians Know!

Two articles caught my eye this morning. First in Zero Hedge is this story: Gold “Fever” in Asia and Central Bank Demand Could Cause an “Earthquake” in the Gold Market.

The giant middle class populations in Asia, especially China and India are buying physical gold bullion in volume due to concerns about global growth, in order to protect themselves from stubbornly high inflation and concerns about the declining value of their respective paper currencies.

Gold demand in China alone is expected to rise about 20% to near 700 tonnes this year from 570 tonnes in 2010.

And, the story goes on to say that this is not a one off demand for 700 tonnes, but sustainable!

The second story comes from Ed Steer’s “Gold and Silver Daily.”

All the major currencies are down almost 80% since 2001 in terms of Gold. Do you see why the Chinese and Indians are buying Gold? They want “…to protect themselves from stubbornly high inflation and concerns about the declining value of their respective paper currencies.”

When will Americans in general wake up?

Finally, look at what’s happened to interest rates in Greece, The betting is for default. With Greece leading the way, how long before the U.S. suffers the same fate?


I subscribe to Le Metropole Cafe written by Bill Murphy. Today with Bill Murphy’s approval, I’m reprinting this article by Andy Hoffman. It was so good and filled with such urgency that I read it all aloud to my wife, Beverly. “Maybe,” I said, “we should be more urgent in our personal affairs and get our house in even better order.” Here’s Ranting Andy:


Andy Hoffman

OK all, as Jim Sinclair says, “the end is here, and it is NOW.” After today’s off-the-charts horrific employment number (which somehow I predicted yet all the genius’ on Wall Street missed), I am officially proclaiming – no, SCREAMING – that the END GAME for the purchasing power of the dollar and other worthless currencies like the Euro and Pound is NOW!

Not six months from now, not next year, not in two years. No, the can has been kicked to the end of the road, where a giant, endless wall is now standing (think the band at the end of Animal House).

I know some of you have heeded my warnings about PROTECTING YOURSELF from the rapidly oncoming onset of hyperinflation, and to those people congratulations. But the majority of my readers, and essentially ALL of the Western World have not, and thus will be on the short end of the GREATEST WEALTH TRANSFER OF ALL TIME, i.e. from those holding assets in the form of PAPER and REAL ESTATE to those holding REAL ITEMS OF VALUE such as PHYSICAL GOLD and SILVER.

Despite every possible Cartel/PPT/government/media effort to manipulate markets and minds, the END GAME has arrived, and I can say with near 100% certainty that you will see the results of the END GAME in your daily lives as the second half of 2011 progresses (i.e. higher prices, unemployment, social unrest, and of course the massive outperformance of gold and silver in the markets).

Precious Metals have been the best performing asset class, WORLDWIDE, for the past decade, yet thanks to the aforementioned propaganda (and constant paper attacks) most people don’t know this yet. In fact, the average person probably thinks gold and silver are “risky” while dollars are “safe”, and even if they thought otherwise wouldn’t have the slightest idea how to purchase them. But for 5,000 years gold and silver have preserved their value, outlasting every fiat currency that has EVER EXISTED! As I have written countless times, the U.S. itself has already lost not one, not two, but THREE fiat currencies to hyperinflation already (the “Continental” following the Revolutionary War and both the Union and Confederate dollars during the Civil War), but these currencies don’t hold a candle to the granddaddy of all paper Ponzi schemes, the current incarnation of the WORLD RESERVE CURRENCY U.S. DOLLAR!

In numerous RANTS this year, I have, in excrutiating detail, described the absurd measures of market manipulation taken by the Cartel/PPT this year to maintain some semblance of status quo while the Western World melts down. The U.S., Europe and Japan are watching their economies collapse, their municipalities flirt with bankruptcy, and their currencies plummet against commodity prices, and each day a new data point emerges to drive the point home further. Things not only are getting worse, but have NO CHANCE of getting better in our GENERATION. Yes, I’ll repeat that – for essentially the remainder of our lives, we will watch the standard of living of the current “superpowers”, particularly the U.S., decline…not by a little, but a LOT.

TPTB in Washington and New York, as well as their pathetic puppets in London, have NO HOPE of reversing the dramatic decline in economic activity that has principally occurred due to decades of THEIR OWN HORRIBLE TRADE, FISCAL, and ECONOMIC POLICIES. Again, for those that listen to the dolts on CNBC, the shills in the Wall Street Journal, or the outright criminals at major brokerage firms and within your beloved government, I said NO HOPE!

Actually, I made this same statement in 2005 about the dangers of an imminent popping of the housing bubble, but back then no one listened to me, saying I was stupid not to buy a house because “you get a mortgage deduction” or “houses will never go down in price”. And in 2000, when I sold the last non-Precious Metals stock that I will likely EVER own, and in March 2002 when I screamed at Bush during his Iraq War speech that he was a liar and that Iraq would become the next Vietnam.

And no, I’m not trying to gloat, I’m trying to say that in a sea of nonsense, very few choose to embrace the truth.

Was it rocket science to think internet stocks were a bubble? Heck, I was a sell-side oilfield service analyst at the time, and our bankers were FORCING us to write about the INTERNET to try and join the internet gravy train.

Don’t believe it? Than read the attached report, which I WROTE FOR SALOMON SMITH BARNEY in 2000 upon the DEMAND of our investment bankers. We were within DAYS of taking an “oilfield internet” company called Petroleum Place public for $2 billion in April 2000 when the bubble popped; yes, that is how far Wall Street bankers will go to rip people off. Heck, we were even FORCED to write a blurb about “Shell – website unnamed” in an effort to get the deep-pocketed Shell’s business. And yet, to this day, that report has had more fame than ANYTHING I’ve ever written! What does that tell you?

Was it rocket science to think housing was a bubble in 2005, when literally EVERYONE I knew was not only buying houses for no or low money down, but immediately refinancing them to put in “improvements” such as new kitchens? I am telling you that every person I knew in NY (I lived on Long Island at the time) was calling me STUPID for not buying a house back then. In Long Island, one of the most expensive (and difficult) places to live in the States, houses are overpriced, have massive property taxes, and on average are 60+ years old (and thus in need of much repair). However, I was called STUPID by FRIENDS and FAMILY for not buying. I pointed out the aforementioned FACTS, as well as the FACT that if/when Wall Street collapses (which I knew it would), it would suck out all of the money funding the Long Island real estate market, but to no avail.

Was it rocket science to think the Iraq War was a sham? I mean, c’mon on people. I worked at CANTOR FITGERALD from 1993-96, and was working on floor 105 during the first bombing in May 1993. I also was across the street at Salomon on 9/11, and watched those people jumping 100 floors to their deaths (many my old Cantor colleagues), so NO ONE is more sensitized to the aftermath of that horrible day. Irrespective, I KNEW there was no way of proving that Iraq, or Saddam Hussein, had anything to do with it, much less to demonstrate he had WMDs ready to use on America. I also KNEW from being a Vietnam buff that any such unprovoked attack would be a failure, not to mention from simply reading about the Russian experience in Afghanistan just 15 years prior.

And, most importantly, is it rocket science to conclude that PRINTING ZILLIONS OF DOLLARS, EUROS, POUNDS, YEN, AND YUAN will cause massive inflation? When I went all-in, as in 100%, to Precious Metals investments in May 2002 (after being 100% in cash for the prior two years), I thought it was the biggest slam dunk of my career. And this was when the dollar had only just peaked, and global CONFIDENCE in the U.S. was at record highs. Was I really brilliant for guessing that years of loose monetary policy, as well as the countless “Made in China” labels showing up everywhere, would eventually translate into a weakening dollar against ITEMS OF REAL VALUE. Ah, the “Strong Dollar Policy” days….

Look, anyone that KNOWS me realizes I am actually a quite humble person, particularly regarding the aforementioned predictions. I don’t believe it took rocket science to make them, but it did take a psychological mindset that counters the norm. I have learned A LOT about the good, but mostly evil, nature of mankind in the past five years, but most importantly I’ve come to better understand mass psychology, and it’s pretty simple….

Even during good times, mankind is genetically programmed to “see no evil, hear no evil”, even when it is right under their noses. And I mean RIGHT UNDER their noses, as in SCREAMING in their FACES. That is why the Holocaust happened, and the Crusades, and why people choose to listen to Bush/Obama, Greenspan/Bernanke, Paulson/Geithner, and even the very same criminals on Wall Street that caused the financial crisis, only to be BAILED OUT WITH YOUR MONEY! I mean, I’m hearing that Geithner is leaving this summer (as the rats continue to jump ship), and that the #1 contender for his vacant Treasury Secretary position is none other than Jamie Dimon, CEO of JP Morgan! And this following Rahm Emmanuel’s replacement as White House Chief of Staff earlier this year by William Daley, also of JP Morgan! These are the very same people who have DESTROYED AMERICA, yet not a peep from anyone in the land that they are joining the co-criminals at Goldman Sachs in running the government.

No one seems to care that each day a new instance of fraud and corruption is exposed, or that rampant money-printing has caused soaring inflation despite a cratering economy, or that Congress continues to spend money on ITSELF while stealing from you, while their cronies at the Fed take bribes from Wall Street so they continue to print more money, and destroy America a little more each day. Or that QE1 + QE2 + all the “hidden QE” has not enriched ANYONE except Wall Street, to YOUR DETRIMENT.

America should be ANGRY; ENRAGED, in fact, as are the people MENA (Middle East/North Africa), the PIIG nations in Europe, and even Britain where mass demonstrations occurred last month. But they are not, principally because the dollar has not yet fully collapsed.

Those other nations do not have the world’s “reserve currency”, so their respective governments don’t have the means to feed them, and that is why they are rioting.

But in the U.S., the dollar still has some semblance of value (albeit rapidly diminishing) because its creditors are collectively scared to be the first to jump ship and dump their dollars in a disorderly manner (thus risking the value of their remaining dollar reserves). But rest assured, the game of musical chairs will end soon, most likely in 2H 2011, and at that point the U.S. government won’t be able to print enough food stamps to feed its unemployed (by the way, JP Morgan makes a fortune printing and processing the food stamps!).

And if you think the debt ceiling saga won’t end badly (just three weeks left), you obviously REALLY don’t want to see or hear evil. This could be the tipping point for the global financial system, but no one seems to care!

Despite all the attacks on Precious Metals this year, which as noted above I described in minute detail in my recent rants, gold is at or close to an all-time high in essentially every currency. U.S.-priced gold, the most manipulated market of all, is just 2% below its late April ALL-TIME HIGH, and equally importantly, Euro priced gold, which has been capped at E 1,080 for the past YEAR, is just now starting to break out, likely ushering a whole new era of fear-based buying across the pond (just closed at E 1,082).

Again, words cannot properly express the ALARM I am feeling now, as the entire Western World Ponzi Scheme teeters on the brink of tumbling into the abyss. History is on the side of my conclusions, which are that those not PROTECTED with PHYSICAL GOLD, SILVER, and OTHER REAL ITEMS OF VALUE such as FOOD will suffer the consequences of dozens of previous generations.

Is that enough to make you act?


P.S. This week was probably the FIRST WEEK in the NINE YEARS I have been watching Precious Metals that GOLD WAS HIGHER EVERY DAY OF THE WEEK! Not a good sign for the Cartel, which will surely crumble in the second half of this year under the weight of mounting economic, fiscal, and monetary pressures. And when I say crumble, I mean the END of the PAPER MARKETS as a pricing mechanism for gold and silver. In fact, I think the criminals in Washington, NY, and London have so tainted the paper markets with fraud, that FUTURES PRICES MAY BE ABOLISHED PERMANENTLY IN THE GOLD AND SILVER MARKETS, or at least for a generation. And when that happens, physical gold and silver will not even be AVAILABLE, let alone at any price close to the current levels. Aside from the REAL THING, perhaps certain closed-end bullion funds will be able to protect you (such as CEF, GTU, SVRZF, PHYS, and PSLV), and perhaps SELECT online PM ownership groups such as goldmoney.com. But that’s IT, and you’d BETTER HAVE YOUR GOLD AND SILVER POSITIONS IN HAND when this event happens, as you won’t get a second chance!

There’s a two week free subscription available to Le Metropole Cafe if you want the best information available about what’s really happening in precious metals.

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