The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate. So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? When that moment arrives, it will represent the end of the paper gold scam. Many believe that the recent takedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them. Instead of cooling off demand for precious metals, it has unleashed a massive "gold rush" all over the globe. This is creating havoc in the financial community, and at least one major international bank has already declared that it will only be settling those accounts in cash from now on. The paper gold scam is starting to unravel, and by the time this is all over it is going to be a complete and total nightmare for global financial markets. For years it has been widely known that the promises that banks have made regarding their gold far exceed their actual ability to deliver, but we have never reached a moment of such crisis before.
Kenya, Australia, Poland and now South Korea. The country, whose net exports represent nearly 60% of GDP, and which have been deeply impacted by the recent collapse in the Yen, finally threw in the towel overnight and cut the benchmark seven-day repurchase rate from 2.75% to 2.50%, as only 6 of 20 economists predicted. The reason the move was surprising is that just like China, which overnight reported CPI of 2.4% on expectations of 2.3%, the country still has pent up inflation concerns, however it appears that preserving economic growth and its export potential is more important to the country bordered by North Korea, than price stability. The result of this largely unexpected move is a strengthening in the Yen overnight, if only by some 30 pips in the USDJPY.
- Lesson From Buffett: Doubt Yourself (WSJ)
- Gold Bulls Split With Buffett as Traders Say Sell (BBG)
- Apple Misses IPhone Customers as Global Carriers Balk (BBG)
- Russia extends Cypriot loan by 2 years, cuts interest: troika document (Reuters)
- Tax Rewrite in Play in Capitol (WSJ)
- No early warning for U.S. on Israeli strikes in Syria (Reuters)
- Germany riveted at start of neo-Nazi murder trial (Reuters)
- JPMorgan Investors Urged to Split Chairman Role, Oust Directors (BBG)
- Leniency for Offshore Cheats (WSJ)
- Brussels steps up efforts over tax avoidance (FT)
- Ambulance chasing: Mesothelioma Doctors, Lawyers Join Hunt for Valuable Asbestos Cases (WSJ)
- Web Sales-Tax Bill Set to Face Bumps (WSJ)
- Colleges Cut Prices by Providing More Financial Aid (WSJ)
Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire - And How You Can Protect Yourself from the BlowbackSubmitted by smartknowledgeu on 04/22/2013 05:27 -0400
Let's get down to the facts of the recent banker gold & silver paper price smash and the lies about the banker gold & silver paper price smash being propagated by the mass media and banking shills like Paul Krugman so everyone can understand why this smash will blow up in the face of the very bankers that executed it at some point down the road. Retail individuals AND global institutions all around the world are finally beginning to understand that physical ownership of gold and silver is how to counter banker fraud & intervention into the gold and silver markets and this realization is going to produce massive blowback.
Here is Part 2 of my article “The Argument of Bitcoins v. Gold Laid to Rest, originally released at my blog, www.theundergroundinvestor.com on April 9, 2013. Yes, money that is real and tangible is really better than money that is just a digital valuation backed by air.
First there was Japan's 'capture' of the Senkakus and the looming troubles that small island will lead to with the Chinese. Then came the economic deflationary spiral, as the global devaluation of developed market currencies prompted Japan to start an aggressive currency war of their own. And now, with North Korea's sabre rattling growing ever louder, Fox News reports that following comments by Japan's Yoshihide Suga on "destroying any missile heading towards Japan," the North Koreans retorted with a threat that Tokyo would be the first target if they decide to play the nuclear card. Luckily, we have John Kerry on the spot, "if Kim Jong Un decides to launch a missile, whether it's across the Sea of Japan or some other direction, he will be choosing willfully to ignore the entire international community," as he weighed in on comments leaked yesterday that North Korea now had the know-how to arm a ballistic missile with a nuclear warhead - even if the weapons would lack reliability. Which is worse an unreliable nuclear missile or a reliable one? Though there is a silver lining, since if a broken window creates a Keynesian utopia, just think of the GDP-boosting greatness of a nuclear explosion in the heart of Roppongi.
Now that the 3:30 pm pump has been exposed to the world, and having been priced in and frontran (such as yesterday) it changed to the 3:30 dump, algos are desperately searching for another daily calendar trading opportunity. It appears the opening of Europe and Japan for trading are just these two much needed "fundamental" catalysts. As the charts below show, it appears there is nothing more bullish for the two key carry pairs, the USDJPY and the EURUSD, than Japan opening at 8pm Eastern, and then Europe opening next, at 3:30 am Eastern.
The boy who cried wolf is now openly screaming "global thermonuclear war." No, really. AFP reports that North Korea said Tuesday the Korean peninsula was headed for "thermo-nuclear" war and advised foreigners to consider leaving South Korea, as the UN chief warned of a potentially "uncontrollable" situation. "Tuesday's advisory -- greeted largely with indifference -- followed a similar one last week to foreign embassies in Pyongyang, to consider evacuating by April 10 on the grounds war may break out. "The situation on the Korean Peninsula is inching close to a thermo-nuclear war," the Asia-Pacific Peace Committee said in a statement carried by the North's official Korean Central News Agency." The result - a big yawn, which sadly for Kim Junior is the worst reaction. After all what is a dictator with an inferiority complex and a laughable military to do to get some respect around here and score some "nuisance value" cash from the superpowers (which has been his entire plan all along).
Are bitcoins better than fiat currencies? Of course. Are they immune from banker manipulation? Possibly but the verdict is still out. Are BTCs sound money? No.
We started off the overnight session with various pseudo-pundits doing the count-up to a 100 in the USDJPY. It was only logical then that moments before the 4 year old threshold was breached, the Yen resumed strengthening following comments from various Japanese politicians who made it appear that the recent weakening in the currency may suffice for now. This culminated moments ago when Koichi Hamada, a former Yale professor and adviser to Japanese Prime Minister Shinzo Abe, told Reuters that level of 100 yen to dollar is suitable level from the perspective of competitiveness. The result has been a nearly 100 pip move lower in the USDJPY which puts into question the sustainability of the recent equity rally now that the primary carry funding pair has resumed its downward trajectory. Another result is that the rally in the Nikkei225 was finally halted, closing trading unchanged, and bringing cumulative gains since the morning before the BoJ’s announcement last Thursday to 8.9%. Over that the same time period, the TOPIX Real Estate Index is up an incredible 24%, no doubt reflecting the prospect of renewed buying of REIT stocks from the BoJ’s asset purchasing program.
- Finally the MSM catches up to reality: Workers Stuck in Disability Stunt Economic Recovery (WSJ)
- China opens Aussie dollar direct trading (FT)
- National Bank and Eurobank Fall as Merger Halted (BBG)
- Why Making Europe German Won’t Fix the Crisis - The Bulgarian case study (BBG)
- Nikkei hits new highs as yen slides (FT)
- Housing Prices Are on a Tear, Thanks to the Fed (WSJ)
- Why is Moody's exempt from justice, or the "Big Question in U.S. vs. S&P" (WSJ)
- Central banks move into riskier assets (FT)
- N. Korea May Conduct Joint Missile-Nuclear Tests, South Says (BBG)
- North Korea Pulls Workers From Factories It Runs With South (NYT)
- Illinois pension fix faces political, legal hurdles (Reuters)
- IPO Bankers Become Frogs in Hot Water Amid China Market Halt (BBG)
- Portugal Seeks New Cuts to Stay on Course (WSJ)
With every modestly positive datapoint being desperately clung to, now that even Goldman's Hatzius has once more thrown in the economic towel after proclaiming an economic renaissance in late 2012 just like he did in late 2010 only to issue a mea culpa a few months later (and just as we predicted - post coming up shortly), the key prerogative is to ignore the elephant in the room. That, of course, is that the JPY 1 quadrillion bond market had to be halted for the second day in a row as the Japanese capital markets are fast becoming a very big and sad joke. The resulting flight to safety from Japanese investors, who sense that their own bond market is on the verge of breaking down completely, has managed to send French and Belgian bonds to record lows, the Spanish 2 Year to sub 2%, the German 6 month bill negative in the primary market, the US 10/30 year constantly bid and so on. The immediate result is that the bond-equity disconnect continues to diverge until one day we may get negative 10 Year rates coupled with an all time high stock market. Gotta love the fake New Normal market, in which the Japanese penny stock market was up another 2.8% to well over 13,000 even as the Shanghai Composite plumbs ever redder territory for 2013 on fears the birdflu contagion will hurt the already struggling economy even more.
North Korean State TV provides 127 seconds of sheer unadulterated weapons-brandishing propaganda as Kim Jong-Un visits the test firing of various anti-Western civilization policy tools - from rocket-launchers, drones, and automatic weapons, the omnipotent leader himself even gets in on the action brandishing an admittedly small weapon... ironic really when all that really matters is the big red button 'threat'.
First the US fanfared the placement of two F-22 Raptors in the Osan airbase of South Korea. Then it demonstratively launched a B-2 stealth bomber on a training mission over a South Korean gunnery range. Then it deployed an anti-ballistic missile defense system to Guam and positioned two guided-missile destroyers in the waters near Korea. And now, courtesy of the Aviationist, we learn that the Pentagon has escalated once more in an ongoing cat and mouse game with North Korea, of who blinks first, and dispatched several B-1 ("Bone") Lancer strategic long-range bombers to Andersen Air Force Base in Guam. What is different this time, however, is that unlike the previous very public and widely trumpeted reciprocal escalation steps, this particular deployment has been kept secret from the public (at least the broader public), "a fact that could be the sign that the U.S. is not only making symbolic moves (as the above mentioned ones), but it is preparing for the worst scenario: an attack on North Korea."
- George Soros: 'What Japan is doing is actually quite dangerous because" (BBG)
- North Korea lacks means for nuclear strike on U.S., experts say (Reuters)
- Yellen latest to hint about slowing of QE3 (FT)
- Hollande approval rating hits new low (FT)
- Hollande Dismisses Reshuffle as Crisis Hits Popularity (BBG)
- Japan Upper house approves full 5 year term for BOJ gov. Kuroda (BBG)
- US: Plan to Cap Tax Breaks Is Gaining Steam (WSJ)
- BOE Says Investors May Be Taking ‘Too Rosy’ a View of Stress (BBG)
- Kiwis Say ‘Ni Hao’ as China Ties Trump Australia Sales (BBG)
- Obama Avoids Trading Threats With North Korea’s Kim (BBG)