Revolving Door? Shocking, Just Shocking . . .

Thu, Jul 17, 2014 - 12:10am

Some wise folks have repeatedly told us that regulatory enforcement at the highest levels is compromised because of the constant flow of high-ranking government officials from positions of governmental power into the lofty, highly-paid perches of private employers who were once the subjects of regulation by those same folks.

Look at all the criminal actions brought by the SEC against all of the wrongdoers in the subprime mortgage fiasco? Right, not a single case. Or wait, there are all those bankers who fraudulently issued fake paper, assignments, robosigned documents, all of it, to allow big banks to foreclose upon homeowners who defaulted upon their NINJA, option-arm, no doc loans, who are serving time after being prosecuted by the Department of Justice, right? <sound of crickets . . .>

Well, there is MFing Global, and the Honorable Corzine, right, who stole a billion in customer accounts, and is rotting in jail? Err, wait . . .

Okay, I got it! Martha Stewart spent HARD TIME in prison for obstruction of justice for failing to correctly confess to insider trading some shares stock. There, see, law enforcement WORKS!!

But then there is this story, that just demonstrates the utter absurdity that there is any semblance of the rule of law left in this dying country known now as USSA, where crony-capitalism controls everything.

Take a look here:

"Then-Attorney General Mark Shurtleff interviewed for a job with a law firm that represents Bank of America just two months before he personally signed a settlement of a lawsuit against the financial giant over whether it was illegally foreclosing on homes in Utah.

He subsequently was hired for the post."

Look at WHO is being prosecuted!! Where is the prosecution of the BANK for corruptly securing the favorable treatment from the supposed "public servant," the attorney general of Utah!?

Is it NOT OBVIOUS what is going on here? The rule of law is DEAD.

It is, and has been for a long time now, a crony capitalism, fascist state. We are overpowered by corruption at the highest levels. This has all been made possible by fiat currency, as there is NO check on government power because the FED issues free money to the big banks, who dole it out to greedy politicians looking to get reelected. Worse still, are those in positions of enforcing laws, who seek the golden parachute from pittance wage government salaried positions, to lofty, multi-million dollar per year private salaried positions at influential hedge funds, big law firms, big corporations, etc. The enforcers are now bought and paid for shills, tools of the corrupt insiders.

For a detailed, but somewhat apologetic look at the sordid mess of securitization of home loans, look at this:

Here is a tantalizing bit:

"In 1995, a group of financial institutions (including Fannie Mae, Freddie Mac,
Bank of America and JP Morgan Chase) joined together to create the Mortgage Electronic Registration System, or MERS. The objective was to streamline the mortgage recording process by bypassing county offices that were slow to process legal documents regarding ownership of mortgages. Rather than record the mortgage with the county clerk, it was instead registered in the name of MERS, which became the owner of record. MERS could transfer the mortgage at
will as many times as desired to accommodate the speed of securitization that characterized the boom years. Transfers were to be recorded in the MERS database. Thus, MERS was a form of book entry for mortgages.

However, MERS relied on mortgage originators and securitization sponsors to record the mortgages as they were transferred through the system. Moreover, when
mortgage delinquencies mounted, MERS did not have the resources required to track ultimate ownership of the claims, thereby delaying possible renegotiation and/or mortgage resolution. Moreover, Hunt, Stanton and Wallace (2011) and Robinson (2011) show that the MERS structure violates legal requirements and may undermine the bankruptcy remoteness legal foundation crucial to the viability of mortgage securitization.

Moreover, the presence of MERS at the origination stage may have created moral hazard at each stage of securitization as underwriters, depositors and servicers substituted MERS’ purported book-entry system for their own back office record keeping. In our analysis, we find that the presence of MERS significantly contributes to the incidence of limbo loans and constitutes operational risk."

So, let me sum up one of their points: a scheme, created by TBTF banks and government-sponsored entities, a public-private crony capitalistic structure, resulted in institutionalized, systemic fraud that has now lead the country into at least seven years of economic malaise? This summation is FROM two academics and a BANKER no less!! [Linda Allen, Zicklin School of Business, Baruch College, CUNY; Stavros Peristiani, Federal Reserve Bank of New York; and
Yi Tang, Fordham University].

They conclude with this:

"In this paper, we document the extent of the limbo loans problem for Florida. We find the problem to be substantial in size, impacting around $25 billion, or almost 20% of subprime mortgages as of December 2010. Importantly, we find results consistent with the operational risk hypothesis. [E.g., FRAUD!!!!!] The limbo loan phenomenon does not appear to emanate from either bank capital constraints or bank capacity bottlenecks (although we do find some evidence of servicer bottlenecks). Instead, back office problems such as MERS participation and lost documentation [the fact is that documents proving the legitimacy of the loan and right to foreclose are NON-EXISTENT, but from this fact, these banksters draw the conclusion that the documents are "lost" rather than the equally likely, if not compelling conclusion that the ENTIRE SECURITIZATION SCHEME IS ONE BIG WALL-STREET FRAUD, MADE POSSIBLE BY FIAT PAPER!!], are shown to contribute both to the likelihood that a delinquent loan will remain in limbo, as well as to the length of time the loan remains in the limbo state."

So, what lessons can we glean from this bit of news and analysis?

Big banks corrupted the process, making debt slaves out of millions of Americans. After legions of homeowners defaulted, paper holders cannot, absent some risk of criminal exposure, or some financial exposure to at least a drawn-out civil litigation battle and attendant costs and fees, simply scoop up the homes and be gone like a thief in the night.

The result: "limbo-loans." As far as the eye can see, and for as long as banks get to keep these non performing loans on their books, in limbo.

What an utter farce.

Stack and prepare, or else.


and here:

As a closing comment, I do not know this attorney on the livinglies site. He seems to know his stuff, is an expert on this whole mess, and anyone affected with the housing meltdown can and should get answers to their own unique situation.

I am not licensed to practice law except in California, and as such, I have to politely decline the requests for specific legal advice. To do otherwise would place me in jeopardy of dispensing advice without a proper license. I do apologize in advance, but that is the way the system works.

If one looks around, one can find a qualified lawyer, just do the homework. I have given you all some leads, and good luck!

About the Author


transplanted babyBollocks
Jul 18, 2014 - 8:14pm

bollocks, guess what I found?

At the end of the movie, The Good, the Bad and the Ugly, Blondie (Clint Eastwood) says that the gold is buried in the grave next to the one marked Arch Stanton. Well, with all the numerology here lately, I converted Arch Stanton to numbers and rearranged them and I end up with the phone number of the Notting Hill Guest House. So the gold must be buried somewhere near there. Digging to start this weekend, say the 25th or 26th. Grave digging, so it has to start at sundown, say 7. You dig?

Spartacus Rex
Jul 18, 2014 - 5:46pm

@ Safety Dan

Re: "Would you vote for Trey Gowdy's immigration bill?"

Perhaps IF the bill included an amendment reading:

" And a Hold, Lien & Levy will be applied to every member of the Executive branch's Administration Officers': Pay, Benefits, and Pensions, until the Executive in Chief sends a 'Bill Due' Notice to the Heads of State from each Country from whereby these Illegals originated from, and/or transited through, for the Apprehension, Detaining & Returning of said Illegals, and Collects and Deposits Same in the U.S. Treasury."

I can pretty much guarantee that such would put an abrupt stop to this derelict B.S. and Mexico would have its northern border locked up tighter than Toby's A** in a heartbeat!

Cheers & Semper Fi, S. Rex

Jul 18, 2014 - 10:01am

Morning at the OK corral

Got keep up the eye with my pistols. Shooting this morning with my daughter out from Nashville, TN. Use the rugar .22 auto for cheaper bang for the buck. Luckily I stocked up on ammo in '08-'09 and bought on the cheap. Where you goon-a find a bonus box of .22 550 rounds on sale for 8.88. Never in this world again as it appears now. As I've stated before the approx 3K spent on ammo back then has been my best investment. After having read the economic break down blogs and .22 rounds as money being so often mentioned, most have a .22 or access to one, in times of upheaval I stocked up big time. I see over on cheaper than dirt the prices have stabilized to coming down for now but all the 500 round boxes are still out of stock and are generally. The gun shows here in UT have all you need if you want to pay the prices but I was 1st in line long ago. Be out for a while here and will miss the TFM updates but time to vacation and hit some family reunions.

Safety Dan
Jul 18, 2014 - 6:52am

@ Spartacus Rex.. Another Step..

Trey Gowdy: The States Should Bypass Obama and Enforce Immigration Law… Here’s How

Trey Gowdy has legislation that will allow state and local law enforcement to go around the feds and actually enforce our immigration laws... good.

Would you vote for Trey Gowdy's immigration bill?

Rep. Trey Gowdy has crafted legislation designed to enable states to bypass...

Spartacus Rex
Jul 18, 2014 - 5:59am
Spartacus Rex
Jul 18, 2014 - 5:32am

Gordon Long The Sub-Prime Economy w/ Charles Hugh Smith

07-11-14 - Macro Analytics - The Sub-Prime Economy w/ Charles Hugh Smith
Spartacus Rex
Jul 18, 2014 - 4:59am

Excellent Article Explains Why Gold Is Anti Bankster Fiat

Is Gold the "Anti-Dollar" United States' Role in the Gold Market

By Dan Popescu for

What role does the United States play in the gold market? The United States is, after the European Union, the largest holder of gold reserves, according to the International Monetary Fund (IMF). Besides China, Russia, India and the European Union, the United States is one of the most important players in the gold market. It is, in my opinion, the most anti-gold country of all the major five players. A whole generation of economists has been indoctrinated to ignore gold or denigrate it as a relic of the past, or a useless metal. Ferdinand Lips, author of Gold Wars, says in his book that “It had become un-American to speak about gold.”(1)

One just has to listen to billionaire Charlie Munger, an associate of Warren Buffett, stating that “gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939, but civilized people don't buy gold - they invest in productive businesses.“(2) Warren Buffett himself said, “[Gold] gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”(3) Furthermore, economist Nouriel Roubini says, “Gold remains John Maynard Keynes’s “barbarous relic”, with no intrinsic value and used mainly as a hedge against mostly irrational fear and panic.”(4)

After President Nixon took the dollar off gold in 1971, there were flexible exchange rates for a few months but then countries went back to the dollar and not gold. The international monetary system then became a pure dollar standard. The Federal Reserve is the “de facto” central bank of the international monetary system, because the dollar is the monetary standard of the world banking system. However, “the problem with a pure fiat standard is that it works only if the reserve country can keep its monetary discipline”.(5) Aristotle said, 2,400 years ago, “In effect, there is nothing inherently wrong with fiat money, provided we get perfect authority and god-like intelligence for kings.”(1) It is evident today that the US is not holding its monetary discipline. The loose monetary policy pursued by the Federal Reserve in the aftermath of the financial crisis, coupled with the fiscal problems piling up is eroding the world’s trust in the US dollar. At the G-10 Rome meetings held in late 1971, John Connally, US Treasury secretary, proclaimed to his astonished counterparts, "the dollar is our currency, but it's your problem."(6) This American arrogant attitude is continuing to this day.

President Nixon and Secretary of State, Henry Kissinger, knew that their destruction of the international gold standard under the Bretton Woods arrangement would cause a decline in the artificial global demand of the US dollar. Maintaining this artificial dollar demand was vital if the United States were to continue expanding its welfare and warfare excessive spending.

In exchange for weapons and guaranteed protection from Israel, the Saudis agreed to price all of their oil sales in U.S. dollars only and invest their surplus oil proceeds in U.S. debt securities. The petrodollar is a term used for US dollars used by different countries in exchange for buying oil and other goods. It is extensive enough that it has become the reserve currency of the world. The significance for the United States is that the US depends upon being able to print an almost unlimited amount of dollars and circulate them outside the country, so that the US can export its inflation and buy many goods at cheaper value than it would otherwise. If the petrodollar comes into question as to how frequently it is going to be used, it would change the whole metric for the US. The US, therefore, has every reason to hate gold. Gold is the biggest threat to US dollar supremacy. No other fiat currency, without gold’s help, can challenge it today. It is for this reason that the US has and is manipulating the gold price.

Graph #1: Gold in US Dollars

Since 1971, when the dollar was delinked from gold, gold has appreciated in dollar terms 3,621.8% or, we should better say, the dollar went down in gold terms 3,621.8%. As we can see in graph #2, the purchasing power of the dollar has almost totally vanished (down approx. 95%). Voltaire said, “Paper money eventually returns to its intrinsic value – zero.”(7) The US dollar is definitely on its way to confirm Voltaire.

Graph #2: Gold vs Purchasing Power of the US Dollar 1913-2014

Since 1971, the price of gold has exploded, following closely US inflation (graph #3), sometimes leading and at other times lagging.

Graph #3: Gold vs US Inflation 1913-2014

In the 1950s, the United States had close to 22,000 tonnes of gold reserves and by 1971, when President Nixon delinked the dollar from gold, the US had only 8,133 tonnes left. The U.S. had 70% of the world’s monetary gold stock in 1948. That is approximately a 64% drop in gold reserves in twenty years. In 1971, President Nixon took the dollar off gold, in order to keep the remaining 30%.

Graph #4: US Official Gold Reserves

Today, if official data is correct, the US still has 8,133.5 tonnes of gold (graph #5), making it the second largest holder of gold reserves after the Euro Area. Gold still represents 70.2% of total US foreign exchange reserves (graph #6) and, as a percentage of GDP, It is 2.1% vs 3.67% for the Euro Area (graph #7). It seems to be a contradiction when you compare the US gold reserves with the anti-gold propaganda coming out of the US government and the economic and financial community. If gold is a relic of the past, then why is the US still holding so much of this “useless” and “valueless” metal? Or is it just ‘do as I say not as I do’?

Graph #5: Official Gold Reserves in Tonnes

Graph #6: Gold as a Percentage of Total Foreign Exchange Reserves

Graph #7: Official Gold Reserves as a Percentage of GDP

The US dollar has been the world's trade currency and the largest reserve currency for the past 43 years. In 2013, the US represented 23% of world GDP, Europe 17% and China 12% (Annex chart #1). The composition of the IMF’s Special Drawing Rights (SDRs )in 2013 was 43% US dollars, 37% EU euros, 12% British pounds and 8% Japanese yens, but no Chinese Yuan (Annex chart #2). The IMF’s currency composition of official foreign exchange reserves was 64% US dollars, 25% EU euros, and no Chinese Yuan (Annex chart #3).

It is evident that the Chinese and the Russians are working together against the Americans to dethrone the US dollar from its “exorbitant privilege” and delink oil from the dollar. If they succeed, and it seems they will, then the dollar standard will collapse. Many countries would be happy to join Russia and China in dethroning the U.S. dollar as the world’s reserve currency. Both China and Russia seem to indicate that gold is a major instrument in that process.There is a game that the Chinese play called Weiqi, and it is similar to chess. In Weiqi, you have to surround your enemy slowly and lay a trap, and then close the trap all at once. The Chinese think that way. They do not really disclose what their plan is; they just move tiny pieces around the board in a seemingly incoherent way, but when all the pieces are lined up that is when the trap is sprung. Looking at the recent currency agreements to bypass the US dollar signed by China, it is clear that this Weiqi game is China’s strategy, but also Russia’s strategy against US dollar supremacy.

The US debt is greater than any other nation’s in the history of the world and it is still growing. Looking at graph #8, we see that the price of gold also closely follows the US debt.

Graph #8: US Debt and Debt Limit vs Gold

All that debt has to be monetized, hence the exponential increase in the money supply. In graph #9, we can see that the gold price also closely follows the money supply (M3). Since 2011 we can observe a divergence between the gold price and the money supply. It is argued by many that this is due to government intervention to suppress the price of gold. If that is the case, then we can expect the price of gold to explode to the upside when the manipulation stops. Market forces always win in the long-term.

Graph #9: US Money Supply M3 vs Gold Price

Chart #10 shows us approximately how much the price of gold should be if the gold price manipulation were to stop. If we consider a 40% gold coverage of the monetary base then the price of gold would be around ,937.90 and, with a 100% coverage, it would be over ,000.

Graph #10: US Monetary Base per Capita vs Gold

Looking at the US consumer demand (chart #11), we can clearly see that the propaganda against gold has succeeded, at least until now. Consumer demand for gold in the US is only 4% compared with China’s 31% and India’s 23%, according to the World Gold Council. Even in Europe, the consumer demand is double that of the US, at 8%. As for consumption per capita of gold, the US is not even in the twenty largest gold consumers (chart #12). However, even if the US consumer is not significant in the gold market, we have observed in recent years a substantial increase in the accumulation of gold by private individuals. Still, Americans accumulate a lot more silver than gold. It is also becoming much easier to buy gold in the US than it was the case in the past.

Graph #11: Total Consumer Demand (Jewelry, Bars and Coins)

Graph #12: Gold Consumption per Capita

US Gold and Silver 1 Troy Ounce Coins

100 US Dollar Note 2014 (backed by faith) vs 100 US Dollar Gold Certificate 1922 (baked by hard asset)

The global picture is in no better shape. The balance sheets of all the central banks (charts #13 and #14) are also in bad shape. This makes many believe that we will not have just a US dollar collapse, but a collapse of the entire fiat currency system, which has today at its core the US dollar. All currencies are linked in one way or another to the US dollar, and none are linked to gold.

Graph #13: Combined Global Balance Sheet Totals (Fed+ECB+BoE+SNB+PBoC+BoJ) in USD trillion (2002-2014)

Graph #14: Annualized Rate of Change of Central Banks’ Balance Sheets vs. Annual Growth in Gold Supply (2002-2014)

When we speak of gold and the United States, we cannot avoid speaking about the paper gold markets, and mainly of futures, options and ETFs. The US is by far the largest player and, in the last two decades, it has dominated the gold price discovery process through derivatives. It is also through the derivatives market that most of the gold price manipulation takes place. Even if the physical gold market has moved to Asia, the paper gold market remains dominated by the US; institutions (through futures, options and ETFs) and individuals (through ETFs). As you can see in graph #16, there are, as of June 27, 2014 ,43.74 owners of gold for each ounce of physical gold. Sometime in January 2014 there were close to 115 owners for each ounce of gold. Observe also the big drop in 2013 of the stockpile of gold at the COMEX, compared to 2012, of about 32% (graph #17). This has brought speculation that the derivatives markets will be in default in the near future. Physical gold is sold and delivered mostly to Asia and it will not come back; at least not at present suppressed prices.

Graph #15: COMEX Depository Warehouse Gold Stocks

Graph #16: COMEX Warehouse – Registered Gold Stocks Cover

Graph #17: COMEX Gold – Deliveries vs Stockpile

The GLD SPDR Gold Shares ETF vs Spot Gold graph #18, below, compares “paper” gold (ETFs) to “real” gold (bullion). GLD represents 1/10 ounce of physical gold less handling fees; hence, the price is always declining.

Graph #18: GLD SPDR Gold Shares ETF vs Spot Gold

Gold is more than just anti-dollar; it is also anti-euro, anti-swiss franc, anti-yen, anti-Yuan, etc., all at the same time; it is anti-fiat currency. The entire fiat currency system based on debt has been discredited and is collapsing, not just the US dollar.

Gold is real money. It is hard currency universally recognized. Charles de Gaulle, President of France, in 1965, just before US president Nixon took the dollar of the gold exchange standard, said:

“The time has come to establish the international monetary system on an unquestionable basis that does not bear the stamp of any country in particular. On what basis? Truly, it is hard to imagine that it could be any other standard than gold.

Yes, gold whose nature does not alter, which may be formed equally into ingots, bars or coins; which has no nationality and which has, eternally and universally, been regarded as the unalterable currency par excellence.”(8)

However, President Nixon and Secretary of State Kissinger managed to prolong the life of the dollar even without any link to gold by linking oil to the US dollar. Let me quote now economist and Nobel Prize Laureate in Economics Robert Mundell, on any possible change to the present dollar-based international monetary system:

“Historically, whenever there has been a superpower in the world, the currency of the superpower plays a central role in the international monetary system. The superpower typically has a veto over the international monetary system and, because it benefits from the international use of its currency, its interest is usually in vetoing any kind of global collaboration that would replace its own currency with an independent international currency. The United States would not talk about international monetary reform now anyway, because a superpower never pushes international monetary reform unless it sees reform as a chance to break up a threat to its own hegemony. From a national standpoint, the United States is never going to suggest an alternative to its present system because it is already a system where the United States maximizes its seigniorage. The more powerful the superpower becomes, the more it is tempted to expand beyond its international monetary potential and exact seigniorage from its clients (or victims?). The United States would be the last country to ever agree to an international monetary reform that would eliminate this free lunch. The more countries start to think about gold as an index, as a warning signal of inflation, the more the monetary authority will try to keep the price of gold from rising.”(5)

The US, in my opinion, will come to any negotiation to reform the international monetary system only in extreme circumstances, kicking and screaming, and will do everything in its power to abort the process if it can. The US government therefore has every reason to manipulate the price of gold to avoid a run on the dollar. If the US dollar-oil link ends, it will be the end of the dollar standard and it will have major negative consequences for the US economy. Could the US link the dollar to gold in some form and save its supremacy? It could but I doubt it. It is not in the US’s interest to initiate any change. There is a pro gold standard movement in the US, proposing to re-link the dollar to gold. However, as of today, it is not very strong. This present system was custom made for the US by the US at Bretton Woods in 1944. The US will use its gold reserves and the privilege of printing the international currency to sabotage any attempt to replace the dollar or that strays too far from the present system. However, I think we will have a “big reset” of the international monetary system soon, and gold is the biggest and the strongest adversary the US dollar has.Gold has been there for 6,000 years and has outlived every fiat currency (graph #19). What would that system be? I do not know but what I am sure is that gold will have a major role in the new system that will emerge, whatever it is.

In conclusion, gold is above all the anti-fiat currency and, therefore, we can definitely also say that gold is the anti-dollar. Of all the present major players in the gold market (United States, European Union, China, Russia and India), the United States ,in my opinion ,is by far the most anti-gold player, and for very good reason.

Graph #19: International Reserve Currencies since 1400


Chart #1: World Gross Domestic Product (GDP) in US Dollars

Chart #2: International Monetary Fund (IMF) Special Drawing Rights (SDR)

Chart #3: International Monetary Fund (IMF) Currency Composition of Official Foreign Exchange Reserves

Chart #4: Thomson Reuters/Jefferies CRB Commodities Index Weights


  1. Gold Wars, Ferdinand Lips

  2. Munger On Gold, Jews, And Civilized People

  3. Talk: Warren Buffett

  4. Gold: Is Nouriel Roubini right the ‘barbarous relic’ will sink to $1,000 by 2015?

  5. The International Monetary System in the 21st Century: Could Gold Make a Comeback?, Robert Mundell

  6. John Connally

  7. Notable Quotes

  8. De Gaulle predicted the dollar crisis in 1965 and advocates the gold standard

  9. In Gold we Trust 2014 Report, Ronald-Peter Stoeferle& Mark J. Valek, Incrementum AG

  10. Nick Laird

Thanks to Dan Popescu from

Jul 17, 2014 - 10:46pm

Harvey's Up! (TFMR)

Harvey's Up!

Mark O'Byrne: Gold rose for a second-day in London as new sanctions on Russia increased safe haven demand. Geopolitical tensions with Russia and in the Middle East are leading to haven demand and there are bargain hunters buying gold bars and coins at the levels. Gold's 14-day relative strength index (RSI) is back to 49 this morning from its low for the week of 42.8 on Tuesday. Prices are holding above their 100-day simple moving average at $1,303/oz. Futures trading volume was 23% below the average for the past 100 days for this time of day. Gold imports by India jumped 65% to $3.12 billion in June from $1.89 billion a year earlier, after the central bank allowed more banks and traders to buy bullion overseas, the Commerce Ministry said yesterday. June imports were estimated at about 74 metric tons.

Bron Suchecki: Zhang Bing Nan of China Gold Association when asked about the West to East flow gave what I think is a classic Chinese answer: the globe is round so what is East and what is West, which got a laugh. Other comments: No matter who you lend your dollars to it is not safe; not the same with gold. [DS: I'm pretty sure he meant that lending dollars isn't safe, but OWNING gold is.] It is fortunate we have different perspectives on gold (i.e. you Westerners want to sell, while we want to buy). Gold in people’s hand makes them feel safe. Asians, unlike westerners, don’t have same financial products, hence they buy gold. From Zhang's presentation slides I thought the comment that "improving the gold market and pushing forward the gold consumption and the “gold held by people” will play a important role in promoting the gold-content of RMB" shows that for China it isn't necessarily important how much gold they have in official reserves, it is about just increasing the total gold held in the country. Whether that indicates they have a contingency plan to confiscate privately held gold if the world moves back to a gold backed monetary system of some sort, or just that they see the country as more wealthy the more gold its people hold I think is an open question.

GoldCore on How High Silver Could Go: Why Silver is in a Bull Market and How High Could it Go? Up until 2010 and 2011, precious metals had been the best performing asset classes in recent years with gold and silver outperforming equities, property and most asset classes over a 3, 5 and 10 year period. They then became overvalued in the short term and were subject to sharp sell offs in 2011 and again in 2013. It is important to note that there were similar sell offs in the 1970s bull markets prior to the primary secular trend reasserting itself. The fundamentals for gold and particularly silver are very bullish. The primary reason for our bullish outlook on silver is due to the following: i) The continuing and increasing global macroeconomic, systemic, geo-political and monetary risks. ii) Silver's historic role as money and a store of value. iii) The declining and very small supply of silver. iv) Significant industrial demand and perhaps most importantly significant and increasing investment demand. Silver rose by more than 25 times or by more than 2,400%. Were silver to replicate its performance in the 1970s, it would have to rise by more than 25 times again.

Koos Jansen: Gold import is currently still being curbed by the Indian government in an attempt to control the current account deficit. In 2013 the Indian government raised the import duty on gold from 4 % to 10 %. Additionally 20 % of gross gold import was required to be re-exported - this is referred to as the 80/20 rule. In this chart from you can see the premium of gold in India compared to London spot. At the end of April it touched 20 % (including the 10 % import duty). Many Indians seeking for a store of value fled to silver because of the large premiums on gold. In April 2014 India gross gold import was 43 metric tonnes, net import accounted for 35 tonnes, according to the DGCIS. Gross import was down 28 % m/m, 70 % y/y. Year to date gross import stands at 171 tonnes, down 60 % from last year. Note, these are official numbers, because of the high import duties there is a lot more gold being smuggled into India, unfortunately it is impossible to know how much.

Dr. Paul Craig Roberts and Dave Kranzler: Between July 14 and July 15, contracts representing 126 tonnes of gold was sold in a 14-minute time window which took the price of gold down $43 dollars. No other market showed any unusual or extraordinary movement during this period. To put contracts for 126 tonnes of gold into perspective, the Comex is currently reporting that 27 tonnes of actual physical gold are classified as being available for deliver should the buyers of futures contracts want delivery. But the buyers are the banks themselves who won’t be taking delivery. The Government is complicit in the price suppression and manipulation of gold and silver and welcomes the insider trading that helps to achieve this result. The conclusion is inescapable: if illegality benefits the machinations of the US government, the US government is all for illegality.

The NY Sun: Mr. Hensarling asked Janet Yellen whether she would be willing to report to his committee on the matters that were discussed in her meetings with the treasury secretary. Replied Mrs. Yellen: “I’m not willing to report on a regular basis on private conversations that I have, ah, but any agreement that we reached would certainly be in the public domain.” Any agreement? That strikes us as a newsworthy statement in an era in which the Federal Reserve has just expanded its balance sheet by trillions of dollars. How will the constitutional custodian of the monetary powers know whether agreements were reached? How is the Fed going to ease out of these hyper low interest rates without bankrupting the Federal government that owes it all this money? A career covering monetary reform has left us with the opinion that the Fed is over-ripe for review. Feature, after all, the remarks in May by Paul Volcker, Mrs. Yellen's illustrious predecessor. He reprised the era of fiat money that has obtained since the collapse of Bretton Woods in the 1970s and declared: “By now I think we can agree that the absence of an official, rules-based, cooperatively managed monetary system has not been a great success.” Surely Mrs. Yellen must know that there are millions of Americans who are coming to comprehend the truth of Mr. Volcker’s words and are growing impatient with the Fed Congress created.

All this and more on...

The Harvey Report!


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4 oz
Jul 17, 2014 - 10:31pm
boomer sooner
Jul 17, 2014 - 9:56pm

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Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

Key Economic Events Week of 4/6

4/8 2:00 ET March FOMC minutes
4/9 8:30 ET Producer Price Index
4/10 8:30 ET Consumer Price Index

Key Economic Events Week of 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

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