Harvey Organ Should Be An Interesting Read Today

1354 posts / 0 new
Last post
Wed, Feb 20, 2013 - 10:44pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

Re: What Day Is This Harvey Post?

For some reason Harvey is late tonight and I don't have Mr Fix's luxury of working whenever so I had to post what I could find elsewhere or do without. Harvey should have a new post up on his site in a few minutes.

DayStar

Thu, Feb 21, 2013 - 8:01am
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

Some Comments On Items In Harvey's Late Wednesday Post

The thing I was wanting to see from Wednesday was the OI (open interest). The first thing I noticed was they revised downward those enormous (probably more honest) total OIs they initially reported Tuesday for gold and silver. The big thing I saw, though, was that in spite of the huge drop in gold and silver price this week, the OI has increased every day. When the cartel drops price like they have this week, it causes longs to have to cover margin calls. If you don't have the money to meet the margins, you have to sell probably at a loss, and that is what the cartel is after. However, it is not working for them. Some Daddy Deeppockets is meeting them tit for tat as they sell naked shorts and is buying all the shorts they issue, and the OI therefore continues to climb in spite of the tremendous price smashes. It's either that, or the cartel is buying spreads (a long position to match their shorts) on the way down, but that would tend to keep the price from falling, and they would be stuck with more naked shorts they couldn't unload, which is what happened, but I am more fond of the Daddy Deeppockets theory, because China is our adversary for WWIII and they are already buying gold and silver bullion in massive quantities. If it suited them, why would they not break the Comex and clean out the metal? The asteroids have already arrived. I guess we will see tomorrow afternoon when they finally release the COT (Commitment of Traders) historical data. Also, the March silver trading month OI is not falling much. The March OI fell only 3155 to stand at 47,473 Wednesday night. The April gold rose by 1869 to stand at 264,444.

Rajoy of Spain admitted there are no green shoots, and he basically said Spain will collapse. That event will destroy the world economy, and Spain's collapse is probably not far away. If you need food or base metal inserts or PMs, you probably don't have a lot longer to make good on those items. When Europe goes, it will take down Japan and then the US. I don't know what will happen in China, but their market will be gone, and they are lying about their economy. They will probably go down with us, but have a better base from which to rebuild. They probably need to get rid of a bunch of their people too.

HAGD!

DayStar

Thu, Feb 21, 2013 - 12:51pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

A Couple of Interesting Thoughts

I saw this on Main Street, and thought it was worth repeating:

This came from two respected money managers:

1- gold held personally is the exact same thing that central banks hold in their vaults and governments hold on military bases. They don't protect worthless stuff. Think about that.

2-Central banks have a monopoly on money creation. Why then are they diversifying by buying gold? Think about that one Turdites, actions speak louder then words.

https://www.tfmetalsreport.com/comment/170729#comment-170729

Thu, Feb 21, 2013 - 9:11pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

A quick answer to a question,

“Why are central bankers diversifying into gold?”

Even they know that the paper they are printing will soon become worthless.

I would also go so far as to say that they are accumulating far more Gold than they have on their books.

Just like they are accumulating far more debt then they have on their books.

When the currency collapses, all that will be left is gold.

But I don't expect them to give up their con game all that easily,

Western bankers dream of a one world currency, (un-backed of course,)

the East, is working towards a true gold standard.

Their currencies will be the only ones of recognizable value.

"When the student is ready, the teacher will appear."
Thu, Feb 21, 2013 - 9:39pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 21 Feb 2013

This is DayStar (DS) with the Thursday Harvey Report.

GoldCore: More speculative gold buyers appear to have been spooked by the FOMC minutes from the Fed’s January 30th meeting which “said the central bank should be ready to vary the pace of their $85 billion in monthly bond purchases amid a debate over the risks and benefits of further quantitative easing.”

Gold rebounded this morning from a 7 month low as physical buyers in Asia bought the dip and it is likely that central banks are also accumulating after this sharp correction. The RSI or relative strength index is near 20 which suggests that spot gold is deeply oversold and strong support is seen at the $1,500/oz level (see chart below). Other indices like the S&P 500 index has climbed 6% year to date while gold has fallen 6% during the same period. DS: Since the market makes the commentary, I can throw my 2 cents in here. Miles Franklin and many other bullion dealers have seen no surge in sales during this dip. Hence it is gratuitous to aver "Fear In Gold Market As Hedge Funds And Retail Sell". Maybe it's true of the paper markets that retail sold when their stops got taken out or they had to make margin calls, but it most certainly is not true of the even the American bullion market and certainly not in China, India and Japan.

GoldCore: Gold has come under pressure from heavy liquidation by hedge funds and banks on the COMEX this week. The unusual and often 'not for profit' nature of the selling, at the same time every day this week, has again led to suspicions of market manipulation. Short sellers, technical and momentum traders have the upper hand and are pressing their advantage with momentum and sentiment on their side. Nervous longs are being stopped out through stop loss orders and concerns regarding the clear downward short term trend. Gold market sentiment is the most negative that we have seen in recent years. The ratio of sell orders to buy orders was the highest it has ever been in recent days. Yesterday, for the first time ever we had all sell orders for gold and silver coins, bars and certificates and not one buy order. This shows that many retail buyers are very nervous about the outlook for gold and concerned about the risk of further price falls. There has been more selling from retail clients today and we are getting a sense of fear from clients that they have not had in the last ten years. Interestingly, long term buyers of gold and silver bullion, particularly high net worth individuals were evident this morning and flows from this demographic look set to continue. Fear in the gold market and retail buyers selling their gold suggest that we are very likely to close to a bottom.

GoldCore: Gold’s so called ‘death cross’ scare is simplistic, bogus nonsense that should be ignored by all. Gold experienced a ‘death cross’ in April 2012 (see gold chart above) and similar alarmist analysis was put forward about the death of the gold bull market and the likelihood of a 1980 style plunge. This did not come to pass, nor will it come to pass now given the real world fundamentals driving the gold market. Single technical indicators in and of themselves are completely useless. It is far more important to focus on the real fundamentals of a European and coming UK, U.S. and Japanese debt crises’, global currency wars and the real risk of recessions and a Depression. It is far more important to focus on the hard facts and the hard data on money supply growth rather than mere words of central bankers. Currencies globally continue to be debased. Less informed money is again selling gold or proclaiming the end of gold’s bull market. The smart money such as Marc Faber, Jim Rogers and those who predicted this crisis and have constantly advocated a long term allocation to gold bullion to hedge systemic and monetary risk, will accumulate again on this dip.

Chris Powell (GATA): Market analyst Jeff Nielson asks rhetorically today how there can be a "bubble" in the monetary metals sector when hardly anyone is invested in it. Of course the "bubble" in the monetary metals may be a concoction of propaganda to discourage anyone from investing in it, and there's always more propaganda against investing in the monetary metals than in Ponzi schemes, as Jim Sinclair noted yesterday.

Matt Nesto (Breakout): Rates are rising, and lawmakers are brawling over budget cuts. Fear is in retreat, and gold is getting kicked to the curb. Even the chartists are piling on the precious metal today, noting the occurrence of gold's first death cross in over a year, as the spot price dips below $1600 an ounce. As ominous as all of this seems, at least one gold bug says he is undeterred. "I'm a fundamental guy. I care nothing about golden crosses or death crosses or anything of the kind," says Michael Pento, founder and president of Pento Portfolio Strategies. "Gold is a buy".

Steve Englander (ZH): Our risk-warning signals have backed up sharply in the last couple of weeks and especially over the last day or two. To be clear these indications are still suggesting that risk aversion is very low by 2008 to mid-2012 standards, but all of our indicators have backed up markedly, suggesting that despite the abundance of liquidity investors are getting nervous.

Harvey: Wednesday morning we see continued euro weakness against the dollar from the close on Wednesday. The yen this the morning is a lot stronger against the dollar, at 92.86 yen to the dollar. The pound, this morning is a touch stronger against the USA dollar remaining in the 1.52 column at 1.5225. The Canadian dollar is weaker against the dollar at 1.0144. We have a risk is off situation this morning with the major European bourses in the red . Gold and silver are higher in the early morning, with gold trading at $1575.00 (up) and silver is $28.90 up 30 cents.

Comments on Thursday's price action (basis 1:30 PM EST)

Quote:

Gold closed up 60 cents to $1578.60 gaining all the ground it lost in the access market.

Silver gained 9 cents to $28.79.

Wednesday, February 20th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/02/gold-and-silver-reboundsilver-oi.html

Total, Feb (Gold), Mar (Silver), Apr (Gold) Open Interest

In silver

Quote:

The total silver comex OI is certainly gathering much attention from our bankers as they huddle trying to figure out how they can force the silver leaves to fall from the tree.

Today's OI fell by a very tiny 466 contracts from 155,353 down to 154,887. No doubt tomorrow's OI will be higher due to the advance in price of silver.

The non active silver contract month of February saw it's OI fall by 51 contracts from 62 down to 11. We had 57 delivery notices filed yesterday so we again gained 6 contracts or an additional 30,000 oz of silver will stand for delivery in February.

All eyes are fixated on the upcoming silver delivery month of March. It generally is a very big delivery month. Here the OI fell by a normal 5744 contracts from 47,473 down to 41,729. Almost all of the sells rolled into May and July.

In gold

Quote:

The total comex gold open interest surprisingly fell by only 532 contracts from 447,290 down to 446,758. The active front delivery month of February saw it's OI fall by 47 contracts from 1153 down to 1106. We had 41 delivery notices filed yesterday so in essence we lost 6 contracts or 600 oz standing in the month of February.

The next non active delivery month is March and here the OI gained 22 contracts up to 1265.

The next big delivery month for gold is April and here the OI fell by 2149 contracts from 264,444 down to 262,295.

Volume

In silver

Quote:

The estimated volume at the silver comex came in at a huge 84,783 contracts.

The confirmed volume yesterday was enormous at 138,353 contracts.

In gold

Quote:

The estimated volume today was extremely good at 219,179.

The confirmed volume yesterday was also extremely good at 281,607.

Inventory Numbers

In silver:

Quote:

Today, we had some activity inside the silver vaults.

we had 0 dealer deposit and 0 dealer withdrawal.

We had 1 customer deposits of silver:

i) Into CNT: 20,980.86 oz

total customer deposit: 20,980.86 oz

we had 2 customer withdrawals:

i) out of Brinks: 612,951.91 oz

ii) Out of Delaware: 14,031.48 oz

total customer withdrawal: 626.983.394 oz

we had 0 adjustments:

When you see massive deposits and withdrawals you know that there is turmoil inside the silver vaults.

Registered silver remains today at : 37.274 million oz

Total of all silver: 160.417 million oz.

In gold:

Quote:

We had tiny activity at the gold vaults.

The dealer had 0 deposits and 0 withdrawals.

We had 2 customer deposits:

i) Into HSBC: 60,618.507 oz

ii) Into Brinks: 1703.95 oz

Total deposit: 62,322.45 oz

We had 1 customer withdrawals and they were dandies:

i) Out of Scotia; 19,299.655 oz

Total withdrawal:19,299.655 oz

We had 0 adjustments:

Thus the dealer inventory rests tonight at 2.702 million oz (84.01) tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we had 8 notices filed for 40,000 oz of silver for the February contract month.

In gold:

Quote:

The CME reported that we had 22 notices filed for 2200 oz of gold today.

Contracts Left To Be Delivered + Month-To-Date Summary

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

https://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

In silver:

Quote:

To obtain what is left to be served upon our longs, I take the OI standing for February (11) and subtract out today's notices (8) which leaves us with 3 notices or 15,000 oz left to be served upon our longs.

Thus the total number of silver ounces standing for delivery in silver is as follows:

2,240,000 oz (served) + 15,000 oz (to be served upon) = 2,240,000 oz

We gained 30,000 oz of silver standing for February.

As I promised you, the total silver ounces that are standing for February is advancing and has exceeded 2.0 million oz for two consecutive non active delivery months.

In gold:

Quote:

The total number of notices so far this month is thus 11,290 contracts x 100 oz per contract or 1,129,000 oz of gold. To determine how much will stand for February, I take the OI standing for February (1106) and subtract out today's notices (22) which leaves me with 1084 notices or 108,400 oz left to be served upon our longs.

Thus the total number of gold ounces standing in this active month of February is as follows:

1,129,000 oz (served ) + 108,400 oz (to be served upon) = 1,237,400 oz or 38.48 Tonnes.

We lost 600 oz of gold standing for the February delivery month.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 737 up 0.27%. WTI crude was 93.03 down 1.41 today. Brent closed at 113.76 down 1.41. The spread between Brent and WTI was 20.73, up 0.02. US Treasury 30 year was 3.166 down 0.0043. The interest rate hike is an economy and dollar killer, not to mention the brobdingnagian derivatives Sword of Damocles that is hanging over our heads. The dollar was up 0.99 at 81.46. The PPT/Dow was 13,880.62 down a 46.92, BELOW the very key round number of 14,000! Facebook was 27.28 down 1.18 (4.14%). Silver closed up 0.12 at $28.68. March wheat was down 17.20 at 721.20. March corn was down 9.60 at 690.60. April lean hogs were 82.375 down 0.575. March feeder cattle were 140.500 down 0.075. March copper was 3.5530, down 0.0550. March natural gas was down 0.033 to close at 3.246. March coal is 60.48, up 0.71.

Thank you for reading the Harvey Report. There is much more on Harvey's blog

https://harveyorgan.blogspot.com.

Goooood day!

DayStar

Thu, Feb 21, 2013 - 10:13pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

How about another interpretation?

Fed’s January 30th meeting which “said the central bank should be ready to vary the pace of their $85 billion in monthly bond purchases amid a debate over the risks and benefits of further quantitative easing.”

Seems to me, this could just as easily be interpreted as the Fed wanting to expand its money printing operation.

Maybe $85 billion a month is not enough for the desired goal of maintaining near 0% interest rates.

Maybe $85 billion a month is not enough to support the Obama agenda.

Maybe $85 billion a month is not enough to create the illusion of a recovering economy.

Shall we try $100 billion a month?

If not, why not $1 trillion per month?

"When the student is ready, the teacher will appear."
Thu, Feb 21, 2013 - 10:30pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

Re: Fed Fiat Printing

Mr Fix did you see that article on Main Street today about the Fed's money printing? It said that when interest rates rise to the point that the Fed is paying out more money on money parked there than it was getting on treasuries that it would have to print to pay the difference and it would be printing just to be printing. Of course that is deliberate.

DayStar

Fri, Feb 22, 2013 - 12:42am
ReachWest
Offline
-
XX
Joined: Jun 15, 2011
1459
13449

Expanding QE

Ha! - that's interesting Mr. Fix - I hadn't thought that, but you're right, the interpretation could be that they vary the QE amount upward.

Fri, Feb 22, 2013 - 8:17am (Reply to #388)
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

RE: Fed Money Printing

Mr. Fix, the idea of the Fed increasing money printing is harmonious with the notion that this five year long financial malaise is coming to a head. Even with fake numbers Europe is now in recession. Great Britain's pound is in bad shape, Spain is so bad that I don't know how they keep it working. Eastern Europe has been so bad we don't hear anything about it any more. Southern Europe is imploding. Greece is remaining in the 20th century by stealing power. That can't continue. France is imploding. Germany is in recession. Japan is teetering on the brink as the yen carry trade unwinds. The Fed continues to print money while they have shut off money to regular banks that fuel the economy using Basil III. As my buddy Stormdancer says, "Not good! Not good at all!

DayStar

Fri, Feb 22, 2013 - 2:39pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

Stormdancer ?

Have we met yet?

I can't find that name here.

Edit:

Found it!

Stormdancer
"When the student is ready, the teacher will appear."
Fri, Feb 22, 2013 - 8:05pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

Good evening DayStar,

Since I know that you are lurking in the background tonight, and that you don't usually post a Friday night Harvey report,

I was just curious if you had any thoughts on the COT report?

The numbers are blatantly inconsistent with the price.

I take this as a demonstration by the bankers as to just how corrupt they can be when they want to be.

Do you think there's any conceivable way they could have covered that many shorts without spiking the price?

We have been waiting a long time for some short covering,

it's beginning to look a lot like it wasn't worth waiting for.

I smell a bull trap.

And I think the COMEX has just exposed what a lying bunch of thieves they are, since apparently they can unload their short positions with absolutely no consequences whatsoever.

Not that I thought they were ever worried about it, but you would think this would wake a few folks up.

"When the student is ready, the teacher will appear."
Fri, Feb 22, 2013 - 11:49pm (Reply to #393)
ajwgator
Offline
-
Lexington, KY
Joined: Sep 20, 2012
45
69

It's the "Unseen Hand" at

It's the "Unseen Hand" at play Mr. Fix.........

You are right though in what a lying bunch of thieves they are! All I can say is they are sticking to the plan....

I'm holding tight to my stack.... valued in "ounces" vs fiat.

Sat, Feb 23, 2013 - 5:51am
ltcolkilgore
Offline
-
Northern, IL
Joined: Dec 6, 2012
170
1677

Another one...

https://losangeles.cbslocal.com/2013/02/22/no-emergencies-reported-after...

A never ending meteor shower that no one seems to know anything about?? This is very odd...

And this story...

https://www.scienceworldreport.com/articles/5119/20130222/russian-meteor...

Lots of questions with no answers...

Blessed be the Lord my strength which teacheth my hands to war, and my fingers to fight: My goodness, and my fortress; my high tower, and my deliverer; my shield, and he in whom I trust... Psalm 144
Sat, Feb 23, 2013 - 9:38pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 23 Feb 2013

This is DayStar (DS) with the Saturday Harvey Report.

The FDIC did not seize any banks this weekend.

The Commitment of Traders Report (COT)

Gold: Hugely bullish for two reasons:

  • The commercials went net long by a wide margin of 28,571 contracts. This must be a record.
  • The large specs went hugely net short and they will be annihilated.

Gold will rise next week.

Silver: Hugely bullish for silver, again for 2 reasons:

  • The commercials went net long by 8851 contracts
  • The specs went net short by a huge margin. The specs will be annihilated.

Silver will advance in price but the commercials are very worried about the deliveries. Let us see how this will play out next week.

GoldCore: Currency wars are probably one of the greatest risks posed to the wealth of nations today, because they can result in the complete destruction of fiat currency. In September 2010, Guido Mantega, Brazil's finance minister, warned that an "international currency war" had broken out, as governments around the globe peg their currencies and devalue their currencies against each other. His comments were echoed by senior Russian and Chinese officials. The G20 said last week that there would be no currency wars and some central bankers such as the ECB's Mario Draghi have recently dismissed talk of "currency wars" as excessive. Sir Humphrey, the wily civil servant in 'Yes Prime Minister', always stressed how important it was “to never believe anything until it is officially denied.” Competitive currency devaluations are in effect a continuation of currency debasement. Debasement is simply the devaluing of one's currency or money through excessive creation of billions and billions of dollars, pounds, euros and other fiat currencies. Currency wars are set to deepen as most industrial nations in the western world are close to insolvent and look on the verge of recessions – potentially deep recessions. The fiscal situation of the U.S., the largest economy in the world, is appalling with the national debt having increased from $5.7 trillion in 2000 to over $16.5 trillion today. Besides the U.S. national debt of over $16.5 trillion, the U.S. has off balance sheet debt or unfunded liabilities of between $70 trillion and $100 trillion. The U.S. will never be able to pay these debts back and so it will attempt to inflate them away through currency devaluation. This poses risks to the global reserve currency status of the dollar - especially as the world moves to a multi polar world where India, Russia, Brazil and China exert their increasing economic and political power.

Ben Traynor (BullionVault): Germany's economy shrank by 0.6% in the fourth quarter of 2012 on a seasonally adjusted basis, according to official data published Friday. The German economy is expected to grow by 0.5% during 2013, according to new forecasts published today by the European Commission, which previously projected 0.8% growth this year for Germany. France's economy is forecast to grow by 0.1% - down from 0.4% forecast three months ago – while the economy for the Eurozone as a whole is projected to shrink by 0.3%, with Spain contracting 1.4% and Italy shrinking 1.0%. Bank of England governor Mervyn King met with People's Bank of China governor Zhou Xiaochuan Friday to discuss the creation of a Sterling-Renminbi currency swap arrangement. "London is growing rapidly as a center for [Renminbi-denominated] business," said King. "The establishment of a Sterling-Renminbi swap line will support UK domestic financial stability." The currency swap arrangement "cements London as the western hub for the fast-growing Renminbi market," added Britain's chancellor George Osborne.

Kara Scannell (Financial Times): The Commodity Futures Trading Commission is suing the New York Mercantile Exchange, a unit of CME Group, and two former employees for allegedly giving secret customer trading information to an external broker. The case is the first time the CFTC has sued Nymex since the 1980s, an official said. It reflects a growing push by regulators to hold exchange operators responsible for alleged misconduct. DS: Is this a PR campaign to offset some negative press or some leg breaking for someone that will not play ball?

In what has been a theme with several miners reporting lower fourth-quarter and year-end results, high costs in 2012 heavily affected IAMGOLD’s (TSX: IMG)(NYSE: IAG) earnings. The company did expect costs to rise in 2012, but IAMGOLD President and Chief Executive Officer Stephen Letwin did not expect the rise to be as steep as it was. "The magnitude of the cost increases did surprise everyone," Letwin said in a conference call in conjunction with a quarterly earnings release Thursday morning. "We expect to have less cost impact after 2013." It will be challenging for the company as it transitions from soft-rock mining to hard-rock mining. DS: It appears that the costs for miners is one of the few places that the true effect of inflation is clearly visible.

Ambrose Evans Pritchard (The Telegraph): AEP believes that every whack in gold is a signal for the Chinese to buy gold and they have been doing so in buckets. It is a treacherous moment for gold bugs. The first whiff of future tightening from the US Federal Reserve has sent bullion into a nose-dive, triggering a much-feared “Death’s Cross” sell signal on gold futures. Gold has dropped by over $100 an ounce in ten days, touching $1556 this morning. The HUI index of gold mining stocks broke down weeks ago – as so often leading gold itself by a few weeks – and has already crashed to levels last seen in 2009. Goldman Sachs has cut its long-term forecast to $1,200. Credit Suisse and UBS are bearish. Citigroup says the great bull market of the last 12 years is over. The “long cycle” has peaked. Economic recovery has yanked away the key support. So long as there are no big “street riots” this year, investors will stop buying precious metals as Armaggedon insurance and rotate instead into stocks that generate income. Such at least is the argument. [DS: If we stopped at this point the article would be pure garbage. The "whiff" of tightening from the Federal reserve is nothing more than has been going on for weeks. It is absolutely nothing different. What we got was the usual selling by bullion banks to stampede the hedge funds momo chasers and flush out the weak hands.] How many times before have we heard “exit talk” from Fed hawks? We know who they are. They make a lot of noise. They are routinely ignored. The policy is dictated by the Fed Board and by Ben Bernanke, and there is little sign yet that the board is about to turn. There is still a glut of capital sloshing around (and ready to go into gold) and a dearth of consumption. The overhang of excess capacity in global manufacturing is still there. China’s investment is still running at 50pc of GDP, and its consumption is just 36pc, the most distorted economy in modern history. The international trading system is still out of kilter. Globalisation is still going haywire and that is the underlying cause of the global crisis.

Andrew Maguire (King World News): “The gold and silver markets have become virtual markets. There is no physical aspect, essentially, to the way they trade on an intraday basis. Extremely large volumes of synthetic supply are just created and exchanged. That’s primarily through the bullion banks, which also have exposure to the physical market, and the managed money and the specs. So when you look at the COMEX, it’s not a delivery market. It’s actually no more than a casino. The price of real physical gold in the actual world markets is, by default, set at the margin because of this incredible leverage. It bears absolutely no relationship to the real, unleveraged supply/demand fundamentals. But here is what we are actually witnessing now: This dislocation is about to blow up. This short-term profit activity over the years has actually created a major, unsustainable divergence between these two markets [DS: Paper and physical]. These banks are actually fighting a losing battle. They simply cannot control the underlying physical market. All you have to do is just pull up a weekly chart of gold or silver and you are going to see a steady, multi-year, solid rise in precious metals prices. That’s against all currencies, not just the dollar. With gold about to break $1700 and silver $32.50 and big orders waiting to come in at $1700 and physical shortages happening and an 18 tonne fully paid order standing on Comex, something had to be done. The takedown footprints lead directly to the Bank for International Settlements.

Chris Powell (GATA): GoldMoney today acknowledges the VIA MAT vaulting company's decision to stop providing services to people with U.S. tax obligations but produces a letter from VIA MAT affirming that this will have no application to the company's services to GoldMoney.

Chris Powell (GATA): London metal trader and silver market whistleblower Andrew Maguire today tells King World News that Eastern central banks have used the recent smashdown in gold to acquire hundreds of tonnes and that the smashdown is actually a "bubble short position" likely subject to a "violent" reversal.

Bix Weir (Road to Roota): The big question out there in the Silver community is not...'Should I sell my silver because I made the wrong investment choice?' but rather...'Have we bottomed at this stage of the latest silver market manipulation?' That is a HUGE step from only a few years ago, when people weren't sure that silver was the right investment.

Stephen Leeb: Any PM selling that's going on here is just selling to the Chinese. The gold that is reported to be flowing to the Chinese through Hong Kong is only part of the story. The Chinese are importing gold from other sources. Certainly within the next 2 or 3 years China is going to be the largest gold holder in the world.

Jim Sinclair (JS Mineset): The pressure on gold is not permanent in any sense. This decline is, as I have told you, similar to the series of declines just before gold took off in the 70s from $400 to $887.50. Those declines then were for the purpose of the last great shake of the gold apple tree prior to the move that gained the most distance over the least amount of time. My birthday is March 27th. By that time this decline in gold will be old history. This decline is purely to take your positions away from you.

Gene Arensberg (Got Gold Report): There were no fewer than four large metal reduction events for GLD since the summer of 2010. In all four cases the large drops in metal holdings were immediately or soon followed by rising gold prices. Charitably in deference to our friends in the financial media: Death Crosses, and “Vicious Circles of Selling” notwithstanding, maybe in a bull market the most obvious signals are not what the headline writers think they are? In fairness, the jury is still out on this GLD metal reduction event, but recent history suggests a GLD metal reduction of size is a buying op. The chart says so, does it not? Guess we will see soon enough, eh?

Andrew Maguire (King World News): “We were already hearing rumors two weeks ago of another CME [Chicago Mercantile Exchange] broker default (when gold was pushing $1,700), and I think something had to be done. Up until the Monday when China went on holiday, these dips were being aggressively bought, forcing the bullion banks on the bid to meet every allocation. This is why gold couldn’t break down below the mid-$1,650s. So what did they (bullion banks) do? They waited until the paper markets had no competition. Waited until China was on holiday and most of Asia was closed, and then they targeted absolutely visible long stops. This (subsequent action) is drawing in auto-traded, managed money short interest, and essentially this is what [the bullion banks] have started to cover into.

Hugh Hendry: There is no rationale for owning gold mining equities. It is as close as you get to insanity. The risk premium goes up when the gold price goes up. Societies are more envious of your gold at $3000 than at $300.

Harvey's comments on Friday's price action (basis 1:30 PM EST)

Quote:

Gold closed down $5.80 to $1572.40. Silver lost 24 cents to $28.46.

However in the access market gold zoomed higher as did silver due to Moody's lowering the credit rating on the UK. (see below)

Here are the final closing prices of gold and silver:

Gold: $1581.50

Silver: $28.76

Thursday, Feb 21st Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/02/moodys-lowers-boom-on-ukspain-comes-in.html

Total, Feb (Gold), Mar (Silver), Apr (Gold) Open Interest

In silver

Quote:

The total silver Comex OI stunned the living daylights out of our bankers by rising by a huge 1548 contracts up to 156,435 from Thursday's level of 154,887. No doubt a raid was signaled by the banking cartel once last night's silver OI was read to the boys. The non active February silver contract month saw it's OI fall from 11 contracts down to 2 for a loss of 9 contracts. We had 8 delivery notices filed on Thursday so in essence we lost 1 contract or 5000 oz of silver standing. We are 4 trading days away from first day notice on the March silver contract month. Here the OI fell by 7,142 contracts from 41,729 down to 34,587. The March OI is still very high and is a great concern to the bankers as they must force these silver leaves to either fall or roll into May.

In gold

Quote:

The total Comex gold open interest as expected rose by 62 contracts from 446,758 up to 446,820. The Comex has burnt too many players, so not too many are entering the paper gold arena.

The active contract month of February saw it's OI surprisingly rise by a huge 667 contracts from 1106 up to 1773. We had only 22 delivery notices filed yesterday so in essence we gained 689 contracts or a monstrous gain of 68,900 additional gold ounces will stand in February, The gain is 2.14 tonnes of gold.

The non active March contract saw it's OI rise by 11 contracts up to 1276.

The next big active delivery month is April and here the OI fell by 742 contracts from 262,295 down to 261,533.

Volume

In silver

Quote:

The estimated volume on the silver Comex was good at 51,646.

The confirmed volume on Thursday was enormous at 105,536.

In gold

Quote:

The estimated volume Friday was relatively weak at 130,504. The confirmed volume on Thursday was a huge 237,586.

Inventory Numbers

In silver:

Quote:

Today we had some activity inside the silver vaults.

We had 0 dealer deposit and 0 dealer withdrawal.

We had 2 customer deposits of silver:

i) Into CNT: 25,296.67 oz

ii) Into JPM: 846,121.26 oz

Total customer deposit: 871,417.93 oz

We had 4 customer withdrawals:

i) out of Brinks: 172,864.07 oz

ii) Out of CNT: 240,420.86 oz

iii) Out of JPM: 992.80 oz

iv) Out of Scotia; 60,319.88 oz

Total customer withdrawal: 474,597.610 oz

We had 0 adjustments.

When you see massive deposits and withdrawals you know that there is turmoil inside the silver vaults.

Registered silver remains today at : 37.274 million oz

Total of all silver: 160.813 million oz.

In gold:

Quote:

We had huge activity at the gold vaults.

The dealer had 0 deposits and 0 withdrawals.

We had 1 big customer deposits:

1) Into HSBC: 59,321.1 oz

total deposit: 59,321.1 oz

We had 2 huge customer withdrawals and they were dandies:

i) Out of Scotia; 64,099.975 oz

ii) Out of HSBC; 63,537.081 oz

Total customer (eligible) withdrawals 127,637.056 oz

We had 2 humdingers of adjustments:

i) out of JPMorgan vault, 35,233.300 oz was adjusted out of the customer account and into the dealer account at JPM

ii) out of HSBC vault, 99,710.512 oz was adjusted out of the customer account and into the dealer account at HSBC

Somebody needed gold badly in a different jurisdiction.

Thus the dealer inventory rests tonight at 2.702 million oz (84.01) tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we had 0 notices filed for nil oz of silver for the February contract month.

In gold:

Quote:

The CME reported that we had 1582 notices filed for 158,200 oz of gold today.

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

https://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

To obtain what is left to be served upon our longs, I take the OI standing for February (2) and subtract out today's notices (0) which leaves us with 2 notices or 10,000 oz left to be served upon our longs.

Thus the total number of silver ounces standing for delivery in silver is as follows:

2,240,000 oz (served) + 10,000 oz (to be served upon) = 2,250,000 oz

We lost 5,000 oz of silver standing for February.

As I promised you, the total silver ounces that are standing for the minor-delivery month of February is advancing and has exceeded 2.0 million oz for two consecutive non active delivery months.

In gold:

Quote:

The total number of notices so far this month is thus 12,872 contracts x 100 oz per contract or 1,287,200 oz of gold. To determine how much will stand for February, I take the OI standing for February (1773) and subtract out Friday's notices (1582) which leaves me with 191 notices or 19,100 oz left to be served upon our longs.

Thus the total number of gold ounces standing in this active month of February is as follows:

1,287,200 oz (served ) + 19,100 oz (to be served upon) = 1,306,300 oz or 40.63 Tonnes.

We gained 68,900 oz of gold standing for the February delivery month and thus we have almost the amount standing from the beginning of the month. Somebody on Friday was in great need of gold.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 740 up 0.41%. WTI crude was 93.13 up 0.10 today. Brent closed at 114.10 up 0.74. The spread between Brent and WTI was 20.97, up 0.24. US Treasury 30 year was 3.1550 down 0.0110. The dollar was up 0.02 at 81.48. The PPT/Dow was 14,000.57 UP 119.95, ABOVE the very key round number of 14,000! Facebook was 27.13 down 0.15 (0.56%). Silver closed up 0.08 at $28.76. March wheat was down 6.20 at 715.00. March corn was down 0.40 at 690.20. April lean hogs were 81.650 down 0.725. March feeder cattle were 141.250 up 0.550. March copper was 3.5330, down 0.0200. March natural gas was up 0.045 to close at 3.291. March coal is 60.32, down 0.16.

Thank you for reading the Harvey Report. There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

Mon, Feb 25, 2013 - 9:32pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 25 Feb 2013

This is DayStar (DS) with the Monday Harvey Report.

Harvey had to do something tonight, and his report is very brief. He left me to my own devices for news stories, so if these are off the beaten track, blame Harvey!

Andrew McGuire: Bids in the physical gold market are exponentially increasing. The result is going to be violent because it is a bubble short position; meaning the market is shorted by weak hands beyond anything I have seen before. The physical market was on fire, (we had) real-time shortages, huge Asian demand, premiums through the roof. Then someone had the audacity in that COMEX casino to tender for 18 tons of casino gold fully paid. At that point they (manipulators) had a problem. Naked shorting is going on there (on the COMEX by bullion banks), and you had this 'perfect storm.' Something had to be done. Anyone close to the physical market knows that the takedown footprints lead directly to the Bank for International Settlements (BIS). This is the central banks of central banks.

Jim Willie: U.S. corporations hold $1.2 trillion in cash reserves. If even 1% of Apple Computer's cash alone - of $137 billion - were moved into Gold, it would cause a price explosion.

DS: Jim Sinclair said by 27 Mar this gold selloff will have been forgotten. TF says metals will have take off around the Skull and Bones Day, 3-22 (March 21-22 is the time of the celebration for the return of the goddess Ostara. March 21 is one of the Illuminati's Human Sacrifice Nights.)

Egon von Greyerz: There is nothing in the US that's pointing to any improvement or anything that would allow for QE programs to cease. In the Eurozone, things are worse. The European Commission admitted that what they expected to be growth in 2013 is not going to be happening. But optimists as they always are, they now say it will happen in 2014. Well, there is absolutely no chance there will be growth in Europe in 2014.

Andrew Hoffman (Miles Franklin): It's not possible to have more "horrible headlines" in a single weekend; which, in a freely-traded capital market, would yield EXPLODING PM prices. Yes, PM prices are higher as I write at 8:45 AM EST; but not after a nonsensical "SUNDAY NIGHT SENTIMENT" opening (Academy Award version). DS: Andy sounds a bit hyperbolic here. Lindsey Williams has been calling for a bank holiday and a formal devaluation of the dollar over a weekend. That would be more of a "horrible headline" than what happened this weekend.

Andrew Hoffmans (Miles Franklin): The weekend started early with Friday evening's "shocking" announcement Moody's stripped the UK of its AAA credit rating. Then, on Sunday morning; news of another captured drone in Iran. [DS: "Given" is a better word.] On Saturday afternoon we witnessed a plunging Yen - to NEW LOWS- following news the new head of the Bank of Japan (BOJ) will be a MASSIVE MONEY PRINTING advocate, and on Sunday evening we got word of a plummeting Chinese manufacturing report threatening actual economic contraction. The money printing new BOJ head comes just in the nick of time as recent data depicts Japan on the verge of HYPERINFLATION </sarc>, and the European economy is in freefall. In the United States of Dying Hegemony, the WAR DRUMS are again beating; just days after appointing a new Secretary of State Kerry who says violence in Syria is further evidence Assad must go.

Tyler Durden: There are two sequesterizations looming on the deficit horizon. The 2011 failure of the Super Committee produced a sequester that reduces budget authority in FY2013 by $85bn; resulting in estimated actual spending cuts of $42bn. What is less commonly known is that in FY2013 there is also a second sequester. This second sequester results from a shift in budget authority from non-defense to defense for the current fiscal year. The shift in budget authority results from the passage of the FY2013 continuing resolution (CR), which provided funding for federal agencies through March 27. In aggregate, the current CR provides the right amount of budget authority ($1.047 trillion) for the year, as stipulated in the Budget Control Act (BCA) – i.e., the Super Committee sequester. The problem with the CR is that it over-allocates budget authority to defense and under-allocates budget authority to non-defense by roughly $11 bln. Once the current CR runs out, the extra $11 bln in defense spending will be sequestered. Unless the Pentagon can obligate that $11 billion by 27 March, it will lose it. If it can obligate the money before then, the rest of the budget will have to eat that $11 bln. DS: My bet is on the Pentagon.

Andrew Hoffman (Miles Franklin): With so many PM bullish events this week, I'm intrigued to see what will happen tomorrow at 10:00 AM EST; when Bernanke gives his semi-annual "Humphrey-Hawkins" testimony to the Senate. Remember, this is the EXACT event that served as Cartel "cover" for last year's "LEAP DAY VIOLATION"; as always, "spun" to suggest an "End to QE." Of course, the post Leap Day PM losses were entirely recouped by the Fall; as the Fed not only didn't end QE, but added QE3 and QE4 by year-end. This time around, even the Ministry of PROPAGANDA will have difficulty playing that "B.S. card"; particularly as PMs have recently been slammed; to the point essentially NO ONE owns them anymore...

Andy Hoffman (Miles Franklin): As we approach the END GAME of the ill-fated GLOBAL FIAT CURRENCY REGIME; bankers have commandeered Western governments, instituting financial "martial law" on billions of unsuspecting citizens. Thus, while Switzerland remains a preferred province for wealth protection, it is no longer what it once was. The Swiss are growing increasingly fearful of IRS sanctions as the US declares its financial sovereignty over the whole world, and as a result many Swiss institutions are starting to shun American clients. Thus, it should come as no surprise that on Friday, the world's leading Precious Metals storage company - ViaMat - announced it will no longer store metal for "private customers with potential U.S. tax liability.

The following article is gold and silver relevant, because it is on the track for the trigger for WWIII.

Beni Emmanuel (Emet Report): Radiation is leaking from Iran's nuclear facility at Fordow, which suffered devastating explosions on Jan. 21, and the regime has ordered millions of antidote iodine pills from Russia and Ukraine amid fears the radioactivity will spread. Many of the personnel, who arrived after the explosion to assist with the cleanup at the site, have been taken to a military hospital suffering from headache, nausea and vomiting, according to a source in the security forces protecting Fordow. A special team of nuclear experts was ordered to the site days ago, the source said, and detected high levels of radiation. The number of confirmed dead from the explosions has risen to 76, said the source, who provided the names of 14 Iranian scientists and one North Korean who died in the blasts. Security forces have arrested 17 high-ranking officers, including majors and colonels, over the incident and summarily executed Maj. Ali Montazernia, a member of the security forces in charge at Fordow [DS on Iran: We don't...we don't...we don't mess around!]. The Islamic regime has put up a wall of silence surrounding the explosions, but with the possibility of radioactive fallout creating grave health and environmental disasters in the nearby holy city of Qom and other surrounding cities, it may not be able to maintain the secret, the source suggested.

Jim Willie: U.S. corporations hold $1.2 trillion in cash reserves. If even 1% of Apple Computer's cash alone - of $137 billion - were moved into Gold, it would cause a price explosion.

Comments on Monday's price action (basis 1:30 PM EST)

Quote:

Gold closed up 12.10 at $1593.60.

Silver gained 23 cents at $28.99.

Friday, February 22nd Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/

Contracts Left To Be Delivered + Month-To-Date Summary

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

https://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

In silver:

Quote:

2,245,000 oz (served) + 10,000 oz (to be served upon) = 2,255,000 oz

This is very high for a non active delivery month

The total OI for the entire silver complex is 157,030 again a multi year record.

And what is more fascinating, the OI for the upcoming March contract is at a very lofty: 31,947 with three trading days to go before first day notice (this Thursday)

In gold:

Quote:

1,289,900 oz (served) + 19,300 oz (to be served) = 1,309,200 oz a gain of 2900 oz from Friday.

The tonnage : a whopping 40.72 tonnes of gold.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 743 up 0.41%. WTI crude was 92.29 down 0.84 today. Brent closed at 114.44 up 0.34. The spread between Brent and WTI was 22.15, up 1.18. US Treasury 30 year was 3.090 down 0.0650. The dollar was up 0.19 at 81.67. The PPT/Dow was 13,784.17 down a "catastrophic" (in terms of the manipulated markets of today) 216.40, BELOW the very key round number of 14,000! Facebook was 27.27 up 0.14 (0.52%). Silver closed up 0.23, and capped at $28.99. March wheat was down 15.60 at 699.20 as the central planners have apparently deemed wheat is too high in spite of the continuing drought in Kansas, Oklahoma and Missouri (at least until this latest HAARP pumped blizzard). March corn was up 3.20 at 693.40. April lean hogs were 81.900 up 0.250. March feeder cattle were 140.000 down 0.800. March copper was 3.5430, up 0.0100. March natural gas was up 0.123 to close at 3.414. March coal is 60.17, down 0.14.

Thank you for reading the Harvey Report. There is much more on Harvey's blog

https://harveyorgan.blogspot.com.

Goooood day!

DayStar

Mon, Feb 25, 2013 - 9:45pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

Thanks Daystar

I wonder why the BDI is going up?

Who is shipping what?

"When the student is ready, the teacher will appear."
Tue, Feb 26, 2013 - 8:31am (Reply to #398)
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

RE: BDI

Mr. Fix, it is bouncing along the bottom and not making significant moves either way. If it gets much lower, nobody can afford to haul freight and some companies go out of business (several have), so the rate is about as low as it can go and freighters can still make a little money. Those ocean going ships use thousands of gallons of fuel oil, and a fill up for them is an expensive proposition.

DayStar

Tue, Feb 26, 2013 - 10:48am
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

Why Investors Around the World Must Move Into Gold and Silver

Robert Fitzwilson via King World News: Cash and the fixed income markets dwarf the equity markets. Cash and fixed income are traditionally viewed as safe havens, but they cannot possibly be under any reasonable set of assumptions in today’s world. We decided to look at the actual zero-coupon Treasury (ZCT) securities last week. On Friday, the 10-Year version of the ZCT was available to buy for roughly 80% of par. In simple terms, this means that one would pay $.80 per dollar on the purchase. If held to the maturity date in 2023, the buyer would receive no income from a coupon payment. While the quoted price will fluctuate over the remaining time to maturity, the price will inexorably rise to par as the maturity date approaches. The gap between the $.80 paid and the $1.00 received from the Treasury at redemption for par would be the effective interest on the investment. On Friday, that compound, coupon-equivalent return was about 2.1% before taxes and before inflation. A buyer on Friday of the 30-Year version was purchasing a contract with a mathematical compound return of about 3% over the next 30 years. If we project that the current inflation rate of 3% will remain the same for the next 30 years (which we are not), the owner of the contract is locking in a real rate of return of zero. That is the absolute best that can happen.

The disturbing part of our analysis comes when one considers the economics of cash compared to those for the zero-coupon securities. Cash is debt. Your dollar bill is really debt. It says “note” at the top. It means that somebody, somehow and someday will make good on it. It is widely accepted throughout the world as a medium of exchange, and is considered to be the best of the debt-based fiat currencies. However, it still is a perpetual, zero-coupon Treasury trading at par.

For the 20-Year and 30-Year ZCTs, the prices as of Friday were $.55 and $.38, respectively. The yields-to-maturity (the compound interest rate of return) were roughly 3.1% and 3.3%, respectively. It just might be that the price of a 30-Year zero reflects the magnitude of the overvaluation of the currency upon which it is based. It might also give us a hint of how much fiat currencies are overvalued in general, and the devastating declines in currencies relative to tangible assets that still lie ahead. The reason it is so critical that investors understand the reality of what is happening in both the cash and securities markets is because whether you have $100 or $100 million, it is imperative that your savings be converted into real assets, particularly gold and silver.

DS: While the above analysis says cash holders are losing about 3% compounded annually which reflects the target rate of inflation of the Fed, it does not reflect the true rate of inflation. The ShadowStats real inflation rate is running 9-12% compounded annually, so while this analysis shows cash holders are losing value, it does not show the real effects of inflation. We have to look at countries to which inflation is being exported, like places where the small miners are trying to open mines, to see costs rising in the range of the ShadowStats computed rate.

DayStar

Tue, Feb 26, 2013 - 9:14pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 26 Feb 2013

This is DayStar (DS) with the Tuesday Harvey Report.

Harvey didn't post anything tonight, so you will have to endure my news scavenging from where ever.

James Turk: The Fed owns $2.844 trillion of long-term debt securities. It also has $253 billion of other assets for which is does not disclose a detailed breakdown, but there is probably not much liquidity to them. But let's focus just on the securities. The price of these securities have declined about 2.5% since their high prices and low yields were reached in June. But let's use a smaller percent price drop because the Fed has been purchasing long-term debt for a while, meaning that some of their paper has higher yields. This is also a conservative approach to take. So instead of a 2.5% decline, let's assume the average price of the long-term paper owned by the Fed has declined by just 2% since June. Because of the intense leverage that the Federal Reserve employs, this means the mark-down on its $2.844 trillion of securities is, in reality, a staggering $57 billion loss, which is actually greater than the Federal Reserve's $55 billion equity. Because the loss on the Federal Reserve’s securities is already greater than its equity, this means that the Fed is already technically insolvent.

Beni Emmanuel: March 5 has been set as the date for peace talks to open in Moscow between the Syrian opposition and the Assad regime. Opposition leader Moaz al-Khatib is waiting to meet the Assad regime's representative, possibly Foreign Minister Walid al-Moallem, in the Russian capital by the end of February to set up the talks. Bashar Assad has taken his resignation off the agenda and insists on reserving the option to run again for president in 2014. He is backed in this by President Vladimir Putin. And even the Syrian opposition appears to have tacitly bowed to this precondition - an admission that the rebel movement has reached its limit and Assad's genocidal, no-holds-barred tactics have paid off. With all their acclaimed victories, rebel forces know that their desperate bid to conquer Damascus was repulsed by the Syrian army's superior fire power and heavy armor. They were thrown back from the heart of Aleppo, Syria's largest city. And they failed to gain control of Assad's chemical arsenal. Ferocious fighting failed to bring the big Syrian Air Force bases into rebel hands. Now, most of the fighting opposition to the Assad regime is ready to negotiate terms for a ceasefire as the opening gambit for a political settlement. They face their enemy standing firm as the unvanquished ruler of Syria and commander-in-chief of its armed forces at the cost of 80-100,000 Syrian lives and a ravaged country. DS: This "civil war" staged by the powers that be has purged dissidents from Syria, has kept Israel from attacking Iran for fear of conflict on its flanks, and has served as cover for Iran to move thousands of Kom Iranian troops and advanced weaponry into Iran. Now the stage is set for Iran to consolodate power in Syria, force Jordan into the Syrian camp and overthrow the Saudis. They can then stage a preemptive attack against Israel.

Andy Hoffman (Mile Franklin): James Turk says the Fed is insolvent. According to Investopedia, the definition of insolvency is "no longer able to meet one's financial obligations, as debts become due." This situation describes essentially ALL Western governments; particularly those held out to be the "strongest". Actually, "technical insolvency" means liabilities exceed assets. However, until cash flow is insufficient to fund day-to-day operations, the END GAME of bankruptcy can be avoided. In today's debt-ravaged world - created PRINCIPALLY by abandonment of the gold standard - nearly ALL governments are technically insolvent; awaiting only a catalyst to push them to the verge of bankruptcy. And with the ENTIRE WORLD in recession (in some cases, depression). The world economic outlook is bleak with the only way to maintain quasi-normal "day-to-day operations" is via monetization; i.e., MONEY PRINTING. Unfortunately, "monetization" is simply a euphemism for debt creation; and thus, the more one monetizes, the worse the technical insolvency becomes. Worse yet, the cost of printing money (aside from inflation) is reflected in interest rates; which rise when CONFIDENCE in the future ability to repay declines. Thus, now that Italy's elections have solidified the likelihood of political strife, the ENTIRE CONTINENT of Europe has once again been engulfed in fears of Euro bankruptcy. This morning's news that Italy faces MASSIVE political gridlock is potentially catastrophic to TPTB's plans to "stabilize" markets via MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA. In a decisive defeat of Monti's "austerity" platform, Italians clearly voted for MASSIVE deficit spending; which can only be achieved via ECB monetization; thus, blatantly violating Euro Zone financial constraints and, in essence, ratcheting up "THE FINAL CURRENCY WAR." DS: When TPTB previously placed an unelected prime minister as head over Italy, can anyone really believe this deadlock is an accident? I, for one, do not. They are positioning to take down Europe and the brief interlude of European stability comes to a close ("and so it begins").

Andy Hoffman (Miles Franklin): Silver is in backwardation all the way out to July 2013. It's by a significant amount, too, by 12 cents for the March contract, 10 cents for the April contract, and 2.5 cents by July. BACKWARDIZATION implies very tight PHYSICAL markets; thus, proving the recent Cartel attack was solely due to PAPER naked shorting, which ultimately will resolve to the upside - as it always does. And by the way, PHYSICAL demand at Miles Franklin continues to be VERY strong; particularly so after last week's PAPER raids.

DS: I went to the bank today to get some cash, and the clerk sent a report to the Feds because I took out more than some threshold amount. What a state we have come to when you get reported to the Feds for taking your own money out of the bank. And then TF gives us a link to a report from Sunday where military officers are now being required to swear allegience to O and to state their intention to fire on civilians if O orders them to confiscate guns. I am in a bad mood tonight as it has been a frustrating day.

Andy Hoffman (Mile Franklin): Since the G-7 economic manipulators started meeting in the 1970s. Back then, the world's seven leading economies were unquestionably the U.S., UK, Japan, France, Germany, Italy, and Canada. With the exception of Canada - which has plenty of issues of its own - these nations are among the most highly indebted and inflation-ravaged on the planet. Amongst these seven, NONE depict collapse better than France (although several are close seconds); once considered a leading political, economic, and social force - but today, withering into COMMUNIST HELL. The French also believe they don't need to earn a living having long ago chosen a "cradle to grave" WELFARE STATE. Consequently, France has been mismanaged into oblivion yielding surging debt, deficits, and a banking system hopelessly exposed to the squealing PIIGS. Since Francois Hollande was swept into office on a Socialist platform last May France's economy has collapsed further, its AAA-rating was stripped, and its banks have required billions of "under the table" BAILOUTS. Moreover, Hollande is apparently far closer to COMMUNIST than SOCIALIST; as evidenced by the maniacal 75% tax rate his is trying to enforce on "the rich" yielding plunging real estate as the nation's wealthy flee France. Like America - and most of the Western World - "FRANCE'S DEATH KNELL" is ringing loud and clear. It's only a matter of time before the next wave of contagion erupts; and when it does, WEAK LINKS like France will be the first to be consumed.

Daisy Luther (The Organic Prepper): The number one thing that could stand between you and freedom just might be your food supply. Throughout history, groups of people have been literally starved into submission when the government took over food production. In each case, you will see that the government started out by controlling how the food was grown. In 1932-33, the Ukraine, formerly the breadbasket of Russia, was turned into a desolate wasteland during the Holodomor. Malcolm Muggerage wrote in his book, War on the Peasants, “On one side, millions of starving peasants, their bellies often swollen from lack of food; on the other, soldiers, members of the GPU (secret police) carrying out the instructions of the dictatorship of the proletariat. They had gone over the country like a swarm of locusts and taken away everything edible, they had shot or exiled thousands of peasants, sometimes whole villages, they had reduced some of the most fertile land in the world to a melancholy desert.” More than 7 million people died so that their farms could be collectivized by Moscow. The Hunger Plan, an economic management system created by the sick mind of Herbert Backe, caused the deaths of 4.2 million people in German-occupied territories of the Soviet Union. The Hunger Plan diverted food from the citizens of the occupied territories and used it to feed the German military. Rations allowed by the Germans for many people in the subjugated areas were less than 200 calories per day. The policies of the Communist Party in China caused more than 76 million people to starve between 1958-61. This, my friends, is why we prep. This is how we will be able to withstand the assaults on our freedom. Every bucket of rice you put away, every seed you save, every bite of food you grow – is a strike against the machine.

No name given: It is time to get serious. Martial Law is the system of rules that become reality when the military takes over the regular administration of justice in a land. That is to say, Martial Law means the “suspension” of the Constitution. Curfews, rationing of basic goods, enforced relocation’s, confiscation of firearms and supplies, and summary arrest/execution by soldiers and paramilitary police wielding assault rifles.

  1. Never take the government’s word at face value--except when they say they will kill you.
  2. Keep your mouth shut! Do not tell anyone anything that could get you in trouble. Assume anything can get you in trouble, because it probably will. Especially with any government official, but anyone looking to gaining a favor with the state can and will snitch on you.
  3. Any authority figure is the enemy! Shun them, their family, and any sycophants that fawn over them for a few favors.
  4. Your personal survival is more important than obeying any dictate! If government prohibits you from having an item that helps you survive, get the item.
  5. While keeping the above rules in mind, help-out those who are resisting!
  6. With the utmost care develop a survival network.
  7. Avoid government monitoring and control. Know where the cameras are and how to avoid them. Know who patrols where, and what routine they follow to avoid contact.
  8. Find a way you can successfully resist.

Comments on Tuesday's price action (basis 1:30 PM EST)

Quote:

Gold closed up 21.10 at $1614.70.

Silver gained 44 cents at $29.43.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 741 down 0.27%. WTI crude was 92.29 down 0.84 today. Brent closed at 112.71 down 1.73. The spread between Brent and WTI was 19.93, down 2.22. US Treasury 30 year was 3.075 down 0.0150. The dollar was up 0.20 at 81.95, so the dollar and gold were up at the same time? The PPT/Dow was 13,900.13 up 115.96, BELOW the very key round number of 14,000! Facebook was 27.39 up 0.12 (0.44%). Silver closed up 0.44, and was capped at $29.43. March wheat was up 6.40 at 705.60. March corn was up 11.40 at 705.00. April lean hogs were 81.575 down 0.350. March feeder cattle were 141.450 up 0.450. March copper was 3.5665, up 0.0235. March natural gas was up 0.013 to close at 3.427. April coal is 59.75, down 0.68.

Thank you for reading the Harvey Report. There is much more on Harvey's blog

https://harveyorgan.blogspot.com.

Goooood day!

DayStar

Tue, Feb 26, 2013 - 10:07pm
Mr. Fix
Offline
-
NY
Joined: Jun 8, 2012
10801
64420

Nice job DayStar.

I just love when you go off the regular format, and do your own thing.

This was good information, and good advice.

Thank you for your efforts.

"When the student is ready, the teacher will appear."
randomness