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Shooting a Video Camera Is Now More Powerful Than Shooting A Gun

Dollar Vigilante - 31 min 59 sec ago

The great anarchist (see Anarchast episode here), Luke Rudkowski, speaking in front of 5,000 people rallying to End the Fed in Berlin, Germany and speaking the truth.

The time has come where the power of the camera and the power of ideas is stronger than the barbaric brute violence always employed by the state.

Cometh bitcoin.

Click here or on thumbnail


USSA Government Comfortable In Its Role As Most Evil On Earth

Dollar Vigilante - 2 hours 23 min ago

You have to be not only evil but without shame to be the only country to vote "No" to a vote in the UN as to whether or not to "Respect International Law" in Gaza.

Slow hand clap, USSA government.  You've outdone yourself again.

Is This The Real Reason Why Malaysian MH17 Was Shot Down?

King World News - 4 hours 23 min ago
Today an outspoken hedge fund manager out of Hong Kong stunned King World News when he spoke about what he thinks is the real reason why Malaysian flight MH17 was shot down. William Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, also met with a senior official in Moscow as part of his information gathering to find out why MH17 was shot down.

It's Time For The BRICS To Act To Counter US Destabilization Efforts

Zerohedge - Wed, 07/23/2014 - 23:52

Submitted by Ben Tanosborn of,

It had to happen!  The blame game on that horrendous airline incident, Malaysian Flight MH17, has reached the expected loud monotone of pointing fault, lock, stock and barrel at Russia… and, more specifically, to that villain ex-KGB Slav, Vladimir Putin.
US media barrage of grotesque and obscene propaganda against America’s former foe and competitor, whether filtering down from the top or randomly finding placement in the emotions of a brainwashed citizenry, has found a leader of this warring marching band in Barack Obama.  The neocon ruling forces in the US State Department together with the bellicosarians running the Pentagon have found a perfect mouthpiece in the president of the US, an unlikely candidate just a few years ago, to do their bidding in Leo Strauss’ messianic vision to rule the World.
America’s few leadership voices of dissent and reasonableness against such ill-conceived propaganda, those of Libertarian Ron Paul and Professor Stephen Cohen (NY University) uniquely standing out, are drowned in a sea of US-poisoned waters where an armada of sanctions is unjustly landing on a nation, Russia, which dares stand for a right to secure its own historic geopolitical status… doing so without expressed or implied ambitions to extend its power and influence over others in the world… as the US does.
If blame is to be directed at any nation for the downing of this aircraft, the investigation needs to be pointed at what has transpired during this past year in Ukraine.  It was not Russia, or separatists in Eastern Ukraine, that created Ukraine’s political chaos.  It was the United States using its money and influence over a subservient European Union that brought down the democratically elected government in Kiev and stirred the ultimate separatist unrest.  So, if anyone is deserving of the ultimate, root-cause blame for this sordid loss of life, it should be the United States Machiavellian players now running Washington.  However, we might honor the memory of these innocent victims of flight MH17 by reaching a modus operandi consensus so that incidents such as this do not occur again.
But how is the world to counter the power of any nation, or block of nations, running amok to establish some form of supremacy over the rest?
We are just a year short of seven decades having a world body as a go-to place where the world problems can be voiced, discussed and hopefully resolved.  But as its ill-fated predecessor, the League of Nations, the United Nations was the creation of victorious nations after a world war… and those major victorious nations, singly or in commonality of interests with allies and partners, always appear to maintain their veto-of-interest over what might be right or fair, regardless of voted-on resolutions, or findings.
Although in some areas the UN has provided mankind a measure of solace and benefit, in key areas of peace, human rights and universal justice, it has not netted the minimum passing grade, thus indicating to the world that its charter needs to either be revised (rewritten); or that the world at large must direct their hopes and expectations in other directions where arbitration and eventual resolution of problems rule the day.
When one sees in the news UN Secretary-General Ban Ki-moon standing side by side with US Secretary of State John Kerry, in an alliance unlikely to stop Netanyahu’s blood-letting in Gaza, we correctly assume it to be what it really is: another diplomatic ploy.  Ultimately placing the blame on Hamas for not agreeing to the peace-plan-du-jour offered by Egypt, and consented to by the Arab League, will not resolve the endless conflict in which Palestine has been mired since the creation of modern Israel in 1947.  All players involved in finding a solution for a peaceful Palestine have failed repeatedly, possibly – some would say precisely – because of the US prejudicial involvement in the entire affair, and the definitive Zionist control over American foreign policy.
If the UN is incapable to change or influence the hegemonic geopolitical behavior of the United States... where else can the world look to find resolution to conflicts such as we have in Gaza and Ukraine today?
Enter the BRICS group of nations; escorted by other smaller nations that prefer dignified independence to protection from a bully they mistrust.  Can this group bring a friendlier, more humane atmosphere where peace and international brotherhood prevail?  It’s certainly worth a try: a way for 80 percent of the world’s population to find their rightful place; and for the presently ruling 20 percent to become more humanized.
Will the BRICS nations take up the challenge?

~~Harvey 23 Jul 2014

TFMR - Daystar - Wed, 07/23/2014 - 23:41

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

News and Commentary

Mark O'Byrne (GoldCore): Gold remains in a very tight range in London this morning as did gold bullion in Singapore overnight. Futures trading volumes were low and 7% below the average for the past 100 days for this time of day, according to Bloomberg data. Silver, platinum and palladium are slightly firmer this morning. Silver for immediate delivery added 0.2% to $21.00 an ounce in London. Geopolitical tension appears to be supporting gold at the $1,300/oz level and above support at the 100-day moving average at $1,302/oz. The 50 and 200 day moving averages are also key levels of support. Gold is down 1.5% for the month after the another peculiar bout of concentrated selling last week. It is in lockdown in a very tight trading range. According to Reuters, the spread between its highs and lows for the month is the narrowest since August 2009 at $53.30/oz.

Harvey: We have two major hot points: Israel's invasion of Gaza to destroy tunnels and their rockets, and continuing stories on the downing of the Malaysian aircraft. Today Putin ordered the Duma to return for an emergency meeting. Rumour has it that they want the Ukrainians to allow for the rebels to form a political party. Poroshenko will have nothing to do with that. GLD: Gold had a big gain of 0.76 tonnes of gold inventory (tonnage now 805.44 tonnes). SLV: We lost 1.583 million oz of silver inventory at the SLV which now stands at 9989.26 tonnes. GOFO is positive and increasing.

GoldCore on Krugman: Krugman has been one of the most vocal gold bears in recent years and his opinion on gold has lacked nuance and ignored the academic and historical record. Krugman is right that so far the record debt levels in the U.S. and throughout much of the western world and the currency printing response have not led to inflation or stagflation. However, it is very premature to completely discount the risk. History clearly shows printing money on the scale that we have witnessed in recent years ultimately leads to inflation, and sometimes hyperinflation. Lenin rightly warned that the "best way to destroy the capitalist system is to debase the currency” [ DS: Or, in Karl Marx's words, "There is only one way to kill Capitalism - by taxes, taxes, and more taxes"] History confirms this. Krugman has great respect for Keynes and yet Keynes shared Lenin's concerns. "Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency" warned Keynes. In a time of cozy Keynesian consensus, plurality of opinion is important and it is worth remembering this important warning from the past.

Jeremy Warner (The Telegraph, London): Expanding the money supply via increased central bank reserves was supposed to have boosted bankers' willingness to lend, artificially generating the same "money multiplier" effect that rules in more normal times, when commercial bank lending and money creation is buoyant. There is very little evidence that this occurred. What very definitely did occur is that small cash savers got squeezed and debtors got bailed out. The biggest of these debtors were governments, particularly the British, US and Japanese governments. All of them were able to borrow more cheaply than otherwise and, with the central bank mopping up supply, were able to raise a great deal more money. Central banks became enablers of continued deficit spending. Remove the disciplines of the market, which is in effect what QE does, and governments will spend, if not with outright abandon, certainly with less concern than they would otherwise. Both in Britain and the US, much of the urgency of deficit reduction has been removed by QE. Governments can proceed at a leisurely pace. Heck, why not make deficit spending a permanent feature of the economic landscape? An invidious sophistry surrounds official explanations of QE, as well as a blanket denial of what it really is. No central bank will admit the unpalatable truth -- that it is backdoor monetisation of government debt -- certainly illegal under European law and possibly English law, too. As the Sheffield Institute authors argue, if you are going to use monetary means to finance government spending, you should at least be open and honest about it, as well as have a proper debate about whether QE is really the appropriate way of going about it. In any case, underlying all this monetary manipulation is a deeply depressing set of contemporary assumptions and received wisdom -- that government spending can somehow magic up economic growth; that politicians and regulators know better than markets how productively to allocate investment; that social equality should be the ultimate aim of all government activity. How ironic that QE has succeeded only in making this latter goal even more distant.

Gene Arensberg (GotGoldReport): The Got Gold Report's Gene Arensberg tonight looks again at trader positions in gold futures and concludes that "the gold trade," the people who do the biggest business in gold, "are currently positioned as though they do not believe that gold has any significant downside." Arensberg's commentary is headlined "Comex Producer/Merchants in Gold, View from 30,000 Feet an Eye-Opener".

Tyler Durden: There is no better way to describe what the recently departed CFTC commissioner Scott O'Malia just did when he bailed from the commodity watchdog to become the new head of the International Swaps and Derivatives Association, aka ISDA, the biggest banking group that has constantly opposed every intervention and attempt to regulate the swaps market by the CFTC since the Lehman crisis, than an epic farce. For those who are unaware ISDA is a global OTC derivative lobby group, counting the world's largest investment banks among its members, and has frequently fought regulatory efforts to reform the market after the financial crisis. ISDA itself was exposed as a complete joke during the European crisis when due to the overhang of avoiding Europe's insolvent reality, it made CDS protection obsolete as protection from sovereign restructurings and credit events, in the process crushing one of the key ways to hedge for credit event risk.

Zero Hedge: It seems like it was only yesterday when China lied it would open up its bond market to real price discovery and unleash a wave of corporate defaults resulting from epic capital misallocation and central planning, consequences be damned. Well, one company, one single solitary company did default in March, and after the new bond issuance market ground to a halt, and coupled with the swoon in Chinese housing, the consequences were promptly undamned and every single company that was set for bankruptcy was bailed out in the last moment as once again China re-evaluated its options and decided to keep the status quo (the other being the so-called deleveraging and debt issuance slowdown which, paradoxically, resulted in the biggest increase in bank assets in history in Q1). Well, those keeping track and hoping the second default would finally hit have to hold their breath again after yet another last minute bailout has now made a complete mockery of China's "deliberate" intentions to clear up the rot plaguing its bond market. As Reuters reports, Huatong avoided a "landmark bond default at the last minute on Wednesday, raising enough funds to pay off both principal and interest on a 400 million yuan ($64.51 million) bond." Who bailed it out? Why the same government which continues to say one thing and do something totally different.

Tyler Durden: At this point it is beyond any one (or countless number of) human beings to distinguish truth from lies from epic propaganda, so we won't even try. Here is the latest relevant news that just crossed the stream from Ukraine's defense ministry. From Bloomberg: REBELS DOWN 2 UKRAINIAN FIGHTER PLANES TODAY, IFX REPORTS. REBELS DOWN SU-25 FIGHTERS IN DONETSK REGION: DEFENSE MINISTRY. More from Reuters: Pro-Russian rebels have shot down two Ukrainian fighter jets, a spokesman for Ukraine's military operations said on Wednesday. The spokesman said the two were downed near Savur Mogila in eastern Ukraine. No details were known about the pilots. As a reminder, it was the same Ukraine which hours before the MH17 crash insisted that a Russian fighter jet had downed a Ukraine warplane, a story which promptly disappeared once Russia rejected it as idiotic and once the much more severe fallout from the MH17 disaster hit. Somehow we have a feeling this is merely yet another attempt by Ukraine to keep the pressure on the rebels now that the international response to MH17 has been muted by nearly 100% following Europe's complete inability to agree on what if any sanctions should be imposed on Putin, and the US state department presenting evidence of Russian involvement that can best be described as laughable.

Zedro Hedge: As the tit-for-tat public relations blitz continues to play out, Ukrainian President Petro Poroshenko has demanded that the self-proclaimed Donetsk People's Republic (DPR) and Luhansk People's Republic (LPR) be recognized as terrorist organizations, "so that any cooperation or support the terrorists receive is recognized as such under international law." Now that the US has 'proved' that the separatists shot down MH17, we suspect the calls will grow louder... even as Poroshenko says he opposes martial law.

Tyler Durden: With almost metronomic frequency, and perhaps related toPutin's emergency meeting of the State Duma, The Wall Street Journal is reporting that the Obama administration is prepared to expand a new set of economic sanctions against Russia if the country doesn't take steps to end Ukraine's conflict with pro-Russia separatist fighters. No details were exposed by the senior administration official, but as WSJ notes, current sanctions don't prevent U.S. entities from doing business with the Russian firms or freeze their assets. We await the new boomerang.

Zero Hedge: In a somewhat disconcerting move, Russian President Vladimir Putin has recalled The State Duma from a planned vacation to participate in an unscheduled meeting because of the situation in eastern Ukraine. As Ukrinform reports, sources confirm "Something is being planned, because many deputies come, probably for a quorum." Rumors are spreading that Putin is set to issue Kiev an ultimatum over recognizing separatists or face military intervention.

This Will Not End Well (In the Short Term)
Jim Willie: As far as the NSA spying on Germany, Willie says, “I think they are looking for details on assisting Russia on dumping the dollar. I think they are looking for details for a secret movement for Germany to get away from the dollar and join the BRICS (Brazil, Russia, India, China and South Africa.) This is exactly what I think they are going to do.” Willie thinks as countries move away from the U.S. dollar, the money printing (quantitative easing, QE) increases, and the economy gets worse. Willie calls this a “feedback loop” that he contends, “You get the feedback loop from the damage of lost income that comes from the higher costs that comes from QE. It’s not stimulus, people. It’s a back door Wall Street bailout that degrades, deteriorates and damages the economy in a feedback vicious system. . . . You are seeing the free-fall and acceleration of the damage; and, so now, you get even more cost damage. QE didn’t happen by accident. Foreigners didn’t want to buy the Treasuries anymore. They don’t want to buy a bond where the same central bank is printing money to buy the bond! QE raises the cost structure and brings about shrinkage and disappearance of profits. QE is not stimulus. It’s capital destruction. ”

DS: Just as a note regarding Christine Lagarde's numerology speech in which 7s played a prominent role and July seemed to be a pivot point in currency revaluation. My impression was that July 25 was more significant than some of the earlier numbers because 2 + 5 = 7, so, maybe July 25 is the big one. More speculation: Maybe the waterfalls in the price of PMs over the past few days and tonight were the elites positioning the PM markets as low as possible in advance of the new currency revaluations.

GoldCore: Total global silver supply from both production and scrap has only increased marginally in recent years despite silver’s price gains. Meanwhile demand has been increasing, particularly investment demand. This hasn't resulted in significantly higher prices yet because the world has been able to fill the gap from inventories and official government stockpiles. However, today the U.S. government's stockpile is all but gone, and sales from other official sources, such as China, Russia and India, have ended. The decline in refined silver stocks, from around 2.2 billion ounces in 1990 to around 1 billion ounces today means that silver stocks are near an all time low. The rigging or manipulation of the silver price has likely also contributed to silver’s failure to achieve higher prices. Very importantly, silver is very unusual as its supply is inelastic. This means that silver production will not ramp up significantly if the silver price returns to the record nominal highs near $50 per ounce or higher.

Lyn Leahz (B4IN): They passed laws in Georgia to allow for the use of the guillotine on death row. But were you also aware a federal judge has now joined the ranks of those pushing for the use of guillotines nationwide? Now do you see why they “botch” executions? They need to make the people demand a better way to kill. PROPHECY WILL BE FULFILLED! Just as is predicted in the end times—death by beheading! And this seems to be the way in which they are bringing this primitive form of punishment back to the present! Of course, we can’t dismiss that this form of punishment has been taking place by sword in other parts of the world, such as the Middle East, for quite some time now. But the fact that this is now being pushed in a place where such punishment has been unheard of is BIG news! Revelation 20:4 And I saw thrones, and they sat on them, and judgment was committed to them. Then I saw the souls of those who had been beheaded for their witness to Jesus and for the word of God, who had not worshiped the beast or his image, and had not received his mark on their foreheads or on their hands. And they lived and reigned with Christ for a thousand years. We are very close! All of the cards are being put into place right now for the final events that are before us—the events spoken of in the book of Daniel, and the book of Revelation. DS: I think the mark regulating the buy and sell does not come until the last 3.5 years of the earth (about 2034-2038) during which the Antichrist reigns. However, the beheadings could happen a lot sooner than that, as the reference to the beheaded saints in Revelation 20:4 does not give a precise time frame for their demise. They could have been beheaded anytime after the cross and before the Second Coming.

Michael the Patriot Blogger: Buried in a Wall Street Journal article from about a week ago was a startling piece of information. According to a Wal-Mart executive, Wal-Mart “participated in an exercise to prepare for an earthquake on the New Madrid fault line” earlier this summer. And officials at the U.S. Geological Survey have just released a report which indicates that they believe that the New Madrid fault zone has the “potential for larger and more powerful quakes than previously thought“. So should we be concerned? Do they know something that we don’t? The USGS also says that the frequency of earthquakes in the central and eastern portions of the United States has quintupled over the past 30 years, and that significant earthquakes have started popping up in areas of the country that were once extremely quiet. According to ABC News, a study by the Mid-America Earthquake Center discovered that even a magnitude 7.7 earthquake would cause incredible amounts of damage. The study concluded that “nearly 750,000 buildings would be damaged, 3,000 bridges would potentially collapse, 400,000 breaks and leaks to local pipelines and $300 billion in direct damage and $600 billion in indirect losses would occur.” So what would a magnitude 8 or a magnitude 9 earthquake look like? And most people don’t realize that there are 15 nuclear reactors along the New Madrid fault zone. In the event of a major earthquake, we could have multiple “Fukushimas” all going on at the same time. Let us hope that it is a very long time before a disaster such as this strikes. But as I mentioned above, earthquake activity in the central part of the country has increased dramatically in recent years. And Wal-Mart is so concerned that it actually participated “in an exercise to prepare for an earthquake on the New Madrid fault line” just a few weeks ago.

Psalms 145:10 ¶All thy works shall praise thee, O LORD; and thy saints shall bless thee.
11 They shall speak of the glory of thy kingdom, and talk of thy power;
12 To make known to the sons of men his mighty acts, and the glorious majesty of his kingdom.
13 Thy kingdom is an everlasting kingdom, and thy dominion endureth throughout all generations.
14 The LORD upholdeth all that fall, and raiseth up all those that be bowed down.
15 The eyes of all wait upon thee; and thou givest them their meat in due season.
16 Thou openest thine hand, and satisfiest the desire of every living thing.
17 The LORD is righteous in all his ways, and holy in all his works.
18 The LORD is nigh unto all them that call upon him, to all that call upon him in truth.
19 He will fulfil the desire of them that fear him: he also will hear their cry, and will save them.


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

Gold closed down $7.60 at $1306.10 (Comex to Comex closing time).
Silver was unchanged at $20.97.

In the access market tonight at 5:15 PM:Gold: $1308.00
Silver: $20.97

Tuesday, Jul 22nd Gold and Silver Action (basis 1:30 PM EST)

Total, Jul (Silver), Aug (Gold), Sep (Silver) Open Interest

In silver:

The total silver Comex OI fell slightly by 281 contracts as silver was up 13 cents on yesterday. The total OI now rests tonight at 163,011 contracts. The silver contracts are in very strong hands and this will continue to bring nightmares to our bankers. The July contract month saw it's OI rise by 5 contracts up to 188. We had 0 notices filed yesterday, so we gained 5 contract or 25,000 additional oz will stand for silver metal in July.

In Gold:

The total gold Comex open interest rose today by contracts from 404,332 all the way up to 405,070 with gold up $4.50 yesterday. The non active gold contract month of July had its OI fall by 30 contracts down to 14. We had 25 notices filed upon yesterday, so we lost 5 contracts or 500 oz standing for delivery in the July contract month.. The next big delivery month is August and here the OI fell by 8,954 contracts down to 137,000. We have a little over 1 week before first day notice.


In Silver:

The estimated volume today was fair at 36,201. The confirmed volume yesterday was poor at 23,844 contracts.

In gold:

The estimated volume today was fair at 136,355 contracts. The confirmed volume yesterday was poor at 105,768.

Inventory Numbers

In Silver Inventory:

Today, we had good activity inside the silver vaults
We had 2 dealer deposits and 0 dealer withdrawal:
i) Into Brinks: 599,911.64 oz
ii) Into CNT: 19,335.700 oz.
Total dealer deposit: 619,247.34 oz.
Total dealer withdrawal: nil oz.
We had 1 customer deposit:
i) Into Delaware: 837,849.910 oz.
Total customer deposit: 837,849.910 oz.
We had 2 customer withdrawals:
i) Out of Scotia: 514,515.58 oz
ii) Out of CNT: 982.50 oz.
Total customer withdrawals: 542,498.08 oz.

We had 1 adjustment:
i) Out of the CNT vault: 1,160,619.02 oz was adjusted out of the dealer account at CNT and this landed in the customer account at CNT
Registered (dealer) silver: 58.148 million oz

Total of all silver: 176.562 million oz.

In Gold Inventory:

We had 0 customer deposit today
total customer deposits: nil oz
We had 0 customer withdrawals:
Total customer withdrawals: nil oz

Today we had 0 adjustments.
Thus tonight, we have the following JPMorgan inventory levels in gold:
JPMdealer inventory remains tonight at 289,135.635 oz or 8.993 tonnes.
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from JPMorgan's client or customer account. The total of all issuance by all participants equates to nil contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices stopped by JPMorgan customer account.

The Total dealer Comex gold remains tonight at 932,807.553 oz or 29.01 tonnes of gold. The total of all Comex gold (dealer and customer) rests at 8,486,920.567 oz or 263.97 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan) with their gold inventory resting tonight at only 23.117 tonnes:
i) Scotia: 303,294.034 oz or 9.433 tonnes
ii) HSBC: 150,814.994 oz or 4.691 tonnes
iii) JPMorgan: 289,135.635 oz or 8.993 tonnes
Total: 23.117 tonnes

The Brinks dealer account, which did have the lion's share of the dealer gold, saw its inventory level lower tonight to 165.375.569 oz or 5.143 tonnes. Several months ago Brinks had over 13 tonnes of gold in its registered or dealer account.

Delivery Notices

In silver:

The CME reported that we had 12 notices filed for 60,000 oz today.

In gold:

Today we had 0 notices served upon our longs for nil oz of gold.

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:

In silver:

To calculate what will stand for this active delivery month of July , I take the number of contracts served for the entire month at 3063 x 5,000 oz per contract or 15,315,000 ounces to which I add the difference between the OI for the July contract month (188 contracts) minus the number of notices served today (12) x 5000 oz.
Thus in summary,initial standings: 3063 contracts x 5000 oz per contract (served so far) equals 15,315,000 oz + ( 188 - 12) x 5,000 = total number of oz standing for July ( 16,255,000 oz)
we gained 5,000 additional oz that will stand for July delivery.

In gold:

In order to calculate what will be standing for delivery in Jul, I take the number of contracts served so far this month at 330 x 100 oz = 33,000 oz, and then we add the difference between the total OI standing for July (14) minus the amount of notices served upon already x 100 oz per contract (0) x 100 oz per contract
Thus: July standings:
330 notices served already x 100 oz = 33,000 oz + (14 - 0) x 100 = 34,300 oz or 1.0668tonnes.we lost 500 oz of gold that will not stand for delivery in July.

Dealer Inventory Summary:
i) The total dealer inventory of gold settles tonight at a level of 29.01 tonnes.
ii) a) JPMorgan's customer inventory rests tonight at 1,016,231.306 (31.609 tonnes).
ii) b) JPMorgan's dealer account rests tonight at 289,135.635 oz (8.993 tonnes).
iii) The 3 major bullion banks have collectively only 23.117 tonnes of gold left in their dealer accounts, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February April and now June being the busiest months for the gold calendar. Another oddity is that the only gold that does enter the customer account are kilobars and kilobars are generally of demand from Eastern persuasion. Lately we are witnessing gold entering of exact weight like Friday's 2,500.00 oz which are not kilobars. That deposit was extremely suspect!!

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 727.00, up 0.55%. WTI September crude was 103.12 down 1.30. Brent crude was 108.15 up 1.28. The spread between Brent and WTI was 5.03 up 2.58. The 30 year US Treasury bond was up 0.0100 at 3.2600. The 10 year T-Note was down 0.0100 at 2.4600. The dollar was up 0.02 at 80.80. The PPT/Dow was 17086.63 down 26.91. Silver closed at 20.91 down 0.06. The GSR was 62.3625 up 0.0115 oz of silver per oz of gold. CIA's Facebook was 71.29 up 2.02 (2.92%). September wheat was up 6.25 at 530.750. December corn was up 2.50 at 370.75. August lean hogs were down 3.000 at 124.575. August feeder cattle were up 1.225 at 217.250. September copper was down 0.001 at 3.207. August natural gas was down 0.010 at 3.762. September coal was up 0.17 at 60.10.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog

Goooood day!


You Know It's Bad When...

Zerohedge - Wed, 07/23/2014 - 23:22

...Darth Vader is more popular than all the 2016 Presidential candidates...


Source: The Washington Post

China Manufacturing PMI Explodes To 18-Month High, Employment Drops 9th Straight Month

Zerohedge - Wed, 07/23/2014 - 22:55

Having shown 11 awkward-to-explain charts of the Chinese economy, exposed the liquidity crisis that still lingers just under the surface, and exposed the "discrepancies that abound" in China's data, it was only right and proper in this new topsy-turvy normal that HSBC China Manufacturing PMI - after 8 months of missed expectations (but a very recent surge to the highest levels in 2014) - should smash expectations and surge to 52.0, its highest sicne Jan 2012 (and 2nd highest since the recovery began).


Despite this exuberant data...

Employment fell for the 9th straight month.


As an aside, this is the first time in 16 months that HSBC/Markit's PMI has topped the Government's official print (payback for a good IPO?) but we note below what has happened each time in the past that this has happened...


With Q2's massive 4x GDP growth surge in total social financing, and the huge 16.4% surge in local government spending in Q2 (6.1% in June alone) compared to a 4% decline in tax revenues; it appears the dragging forward of everything to ensure centrally-planned focused stimulus had the desired outcome has extended (for now) into July's preliminary data.

And just in case anyone gets too excited about what PMI means, here is what BofA research found: "In our view, these data get way too much air time. They give a timely, rough read on the economy, but should get little weight once hard data are released."

*  *  *

As we concluded previously, what is clear is that, taking the numbers at face value, debt levels are still rising with destructive rapidity in order to achieve even such spotty results as these.


Coming from the broadest perspective, Nominal GDP in the June quarter was an annualized CNY4.7 trillion greater than that of a year a year ago, but in that like period the stock of ‘total social financing' outstanding mounted almost four times as much, or by CNY17.7 trillion.


Chart: Bloomberg

David Stockman On The Real Evil Of Monetary Central Planning

Zerohedge - Wed, 07/23/2014 - 22:20

Submitted by David Stockman of Contra Corner blog,

The 2008 Wall Street meltdown is long forgotten, having been washed away by a tsunami of central bank liquidity. Indeed, the S&P closed yesterday at 1,983—or up by nearly 200% from its March 2009 low. Yet four cardinal measures of Main Street economic health convey nothing like a 2X pick-up from the post-crisis bottom.

To wit, in June the count of breadwinner jobs was 68.5 million or 5% below where it stood as the crisis got underway. Likewise, business investment in real plant and equipment is still 5% below its late 2007 peak. So too with the real median family income at about $53k—its still down by 6%. And unlike past cycles where safety net programs like food stamps shed recipients as the recovery gained momentum, there are still nearly 47 million Americans in the program compared to 30 million in March 2009.

This juxtaposition has been explained away by Wall Street stock touts under the heading that “this time is different”. Markets have allegedly sprung loose from their moorings in the real economy owing to record corporate profits and an upward re-rating of PE multiples reflecting lower than historical interest rates. And, indeed, the raw facts can be marshaled to this end.

As shown in the stunning chart below, profits have doubled as a share of corporate net value added since the turn of the century. Likewise, when measured against GDP, profits are at 60-year highs.

This is just the trouble, however. The robust rate of profit growth during recent years reflects a one-time gain in the profit share of factor income. This gain in all probability cannot be replicated again during the next decade, and, in fact, is extremely vulnerable to the mean reversion so evident in the historical data above. Indeed, that may have already begun during the first quarter of 2014 when the profit share dropped sharply as shown in both charts above.

The same can be said of low interest rates. After an unprecedented 33-year descent, the yield on the 10-year treasury benchmark has nowhere to go but higher; and after hitting a QE induced rock bottom of 1.5% in mid-2012, the benchmark yield has, in fact, bottomed and begun a climb toward normalization. No amount of money printing and financial repression by the central banks can keep yields on the current massive trove of $12 trillion of publicly held treasury debt at a negative after-tax and after-inflation rate indefinitely.

This is just the trouble, however. The robust rate of profit growth during recent years reflects a one-time gain in the profit share of factor income. This gain in all probability cannot be replicated again during the next decade, and, in fact, is extremely vulnerable to the mean reversion so evident in the historical data above. Indeed, that may have already begun during the first quarter of 2014 when the profit share dropped sharply as shown in both charts above.

The same can be said of low interest rates. After an unprecedented 33-year descent, the yield on the 10-year treasury benchmark has nowhere to go but higher; and after hitting a QE induced rock bottom of 1.5% in mid-2012, the benchmark yield has, in fact, bottomed and begun a climb toward normalization. No amount of money printing and financial repression by the central banks can keep yields on the current massive trove of $12 trillion of publicly held treasury debt at a negative after-tax and after-inflation rate indefinitely.

This all adds up to a case for capitalizing corporate earnings at a rate well below the historical norms, not at the tippy-top of prior experience. But the Wall Street casino is so juiced-up on the Fed’s promise of endless liquidity and puts under the stock averages that it is uninterested in the fundamentals, and will keep buying the dips until some confidence shattering black swan comes flying in from out of the blue.

And that points to the real evil of monetary central planning and the serial financial bubbles that it inexorably produces. Bubbles are now only recognized after they burst into a flaming crash. The chart below regarding the $2.3 trillion private label market in securitized sub-prime mortgages created by Wall Street in the run up to the last bubble top says it all.


What were heralded to be money-good par securities because “that time was different” have ended up in a smoldering pile of toxic waste.

Goldman Goes Schizo On Gold: Boosts Price Target To $1200 Even As It Is "Selling It With Conviction"

Zerohedge - Wed, 07/23/2014 - 21:44

Back in the beginning of 2014, Goldman loudly predicted that 2014 would be the year of normalization: the economy would grow by 3%, the S&P 500 would barely rise to 1900, and gold would tumble to $1066. By now it goes without saying that it has been dead wrong about the first with the economy set for a contraction in the first half of 2014 and the full year assured to have the worst GDP growth since Lehman, wrong about the second with the market now so clearly disconnected from any economic fundamentals nobody even pretends that it is anything but the Fed manipulating a rigged stock market, and has been painfully wrong about the third.

So with less than 6 months to go until the end of the year, with various gold ETFs suddenly seeing the biggest buying in years, and with gold continuing to outperform most asset classes YTD, what is Goldman to do? Why follow the trend of course, and just like David Kostin had no choice but to boost his S&P 500 price target using the idiotic Fed model as a basis, so earlier today Goldman just upgraded its gold price target from $1,066 to $1,200. Probably this means that after accumulating it for the first half of the year, Goldman is finally preparing to sell the precious metal. Not so fast: because while Goldman did just raised its price target, it continues to have a Conviction Sell rating on Gold, which is its second most hated commodity after iron ore. Go figure.

So without further ado, here is Goldman going full schizo.

Conviction views: Bearish on iron ore, gold and copper, bullish on nickel, zinc, aluminium and palladiumIn gold, we raise our LT price forecasts to $1,200/oz in $2014 terms from $1,066 earlier. Over long time horizons, the gold price has been relatively stable in real terms, keeping pace with inflation. Accordingly we use a flat real gold price forecast assuming gold is an effective inflation hedge and increase in nominal  gold prices should offset the impact from inflation. We believe iron ore (-21%), gold (-20%) and copper (-12%) are the mining commodities with the greatest downside on a 12-month view.

* * *


We have updated our long-term real gold price forecast to $1,200/oz in $2014 terms (was $1,066/oz) to make it more in-line with our marginal cost support level, see Exhibit 66. Currently gold is trading at a 9% premium to our LT real (inflation-adjusted) forecast but we believe on a long-term basis the price should revert back to the cost support level in-line with our estimates.



Marginal cost support at $1,200/oz level


In our view, the 90th percentile of all-in sustaining costs (defined as total by-product cash cost plus royalty expense, plus sustaining capex, exploration and corporate expenses) provides a good estimate of the floor price for gold, as it is the breakeven level for the marginal producer. At times of extreme declines in demand, it is possible for prices to fall below the marginal cost support level; however we believe such events are generally shortlived. Exhibit 67 shows our latest 2014 gold’s all-in sustaining cost curve.



Gold price relatively stable over the long term


Over long time horizons, the real gold price has been relatively stable, keeping pace with inflation. Exhibit 68 illustrates that the real price of gold was fairly constant until the early 1970s, after which it became highly volatile. Although the real price has experienced significant volatility post the 1970s, we highlight its tendency to a mean reversion trend. The real gold price fell back to the 1950s level in 2001 after peaking in 1980, and it is currently in decline again after peaking in 2011.


Where things get downright bizarre is the last paragraph where either Goldman had a humongous typo or merely pulled the boilerplate language from a prior report where for some inexplicable reason Goldman says it has a "$1050" price target even as the table above clearly says $1,200. Oh who cares: this whole report is merely for the benefit of Goldman's prop desk, which is clearly ramping up trading, to do the opposite of whatever Goldman's few remaining clients are doing.

We continue to remain bearish on gold in 2014


We expect gold prices to drop to $1,050/oz by the end of 2014, maintaining our previous forecast. Acceleration in the US economic recovery story remains the key driver behind our lower gold price forecast. While weak economic data due to cold weather and the onset of the Crimea crisis led to a sharp rally in gold prices between January and mid-March, sequentially better US activity and easing tensions pushed gold prices lower by early April. Since then, US economic releases have continued to point to acceleration in growth while tensions in Ukraine have escalated, keeping gold prices range bound near $1,300/toz.

Sure, why not.

That said, can Goldman please also advise if its suddenly very active prop group is buying or selling gold. We promise to do whatever they are doing.

Japanese Exports Tumble For 2nd Month In A Row, Worst Since Abenomics Began

Zerohedge - Wed, 07/23/2014 - 21:39

Japanese exports have disappointed expectations for 6 of the last 7 months. June saw exports drop 2.0% (versus an expectation of a rise of 1.0%). This is the first consecutive month drop in exports since Dec 2012 (before Abenomics was unleashed). Despite eysterday's incessant bullshit from various BoJ member about the economy being on track for receovery etc. the adjusted trade balane has now been in deficit for 39 months in a row with June's unadjusted trade-deficit dramatically worse than expected at JPY822billion. For a sense of how much this disaster means to markets that have become so numbed thanks to central bank intervention, USDJPY fell 2 pips on the news... it's not the economy, stupid; it's the BoJ.



We leave it to none other than Goldman (who some may remember had banked on a J-Curve arriving in the middle of last year just as the textbooks said it would) to explain just how bad today's data really is...

Trade balance to remain in the red, sluggish export volume becoming an increasingly serious issue: We expect the trade balance to remain in the red in the long term. We see a gradual improvement over time in line with recovery in the US economy and elsewhere, but with the boost to export volumes from yen depreciation weakening and structural changes evident in imports, including higher electrical machinery imports, we believe the pace of that improvement will be far more modest than in past periods of yen weakness. There were some commentators who viewed that export volume was weak in January-March as manufacturers allocated the portion of products scheduled for exports for domestic use in response to the pre-tax-hike rush demand, and therefore expected a rebound from April. However, such view was apparently misleading.


Charts: Bloomberg

US Intelligence: No Evidence Russia Did It — Paul Craig Roberts

Paul Craig Roberts - Wed, 07/23/2014 - 21:15

US Intelligence: Russia Didn’t Do It

Paul Craig Roberts

After days of placing hostile blame for the downing of the Malaysian airliner on Russia, the White House permitted US intelligence officials to tell reporters that there is no evidence of the Russian government’s involvement.

Obviously, the US satellite photos do not support the Obama regime’s lies. If the White House had any evidence of Russian complicity, it would have released it to great fanfare days ago.

We are fortunate that the analytical side of the CIA, in contrast with the black ops side, retains analysts with integrity even after the purge of the agency ordered by Dick Cheney. Incensed that the CIA did not immediately fall in line with all of the Bush regime’s war lies, Cheney had the agency purged. The black ops side of the agency is a different story. Many believe that it should be defunded and abolished as this part of the CIA operates in violation of statutory US law.

Don’t hold your breath until Washington abolishes black-ops operations or the Obama regime apologizes to the Russian government for the unfounded accusations and insinuations leveled by the White House at Russia.

Despite this admission by US intelligence officials, the propaganda ministry is already at work to undermine the admission. The intelligence officials themselves claim that Russia is, perhaps, indirectly responsible, because Russia “created the conditions” that caused Kiev to attack the separatists.

In other words, Washington’s coup overseen by US State Department official Victoria Nuland, which overthrew an elected democratic Ukrainian government and brought extreme Russophobes into power in Kiev who attacked dissenting former Russian territories that were attached to Ukraine by Soviet communist party leaders when Russia and Ukraine were part of the same country, has no responsibility for the result.

Washington is innocent. Russia is guilty. End of story.

The day previously, State Department spokeswoman Marie Harf, one of the Obama regime’s brainless warmonger women, angrily turned on reporters who asked about the Russian government’s official denial of responsibility. Don’t you understand, she demanded, that what the US government says is credible and what the Russian government says is not credible!

Rest assured that the owners of the media and the editors of the reporters received calls and threats. I wouldn’t be surprised if the reporters have lost their jobs for doing their jobs.

There you have it. America’s free press. The American press is free to lie for the government, but mustn’t dare exercise any other freedom.

Washington will never permit official clarification of MH-17. Today (July 23) the BBC (the British Brainwashing Corporation) declared: “Whitehall sources say information has emerged that MH17 crash evidence was deliberated tampered with, as the plane’s black boxes arrive in the UK.”

After making this claim of tampered with black boxes, the BBC contradicted itself: “The Dutch Safety Board, which is leading the investigation, said ‘valid data’ had been downloaded from MH17’s cockpit voice recorder (CVR) which will be ‘further analyzed’. The board said: ‘The CVR was damaged but the memory module was intact. Furthermore no evidence or indications of manipulation of the CVR was found.’”

The BBC does not tell us how the black boxes are simultaneously in British and Dutch hands, or how they got into British and Dutch hands when the separatists gave the black boxes to the Malaysians with the guarantee that the black boxes would be turned over to the International Civil Aviation Organization (ICAO) for expert and non-politicized examination.

So where are the black boxes? If the Malaysians gave them to the British, Whitehall will tell whatever lie Washington demands. If Washington’s British puppet actually has the black boxes, we will never know the truth. Judging from the hostile and unsupported accusations against Russia from the bought-and-paid-for Netherlands prime minister, we can expect the Dutch also to lie for Washington. Apparently, Washington has succeeded in removing the “investigation” from the ICAO’s hands and placing the investigation in the hands of its puppets.

The problem with writing columns based on Western news reports is that you have no idea of the veracity of the news reports.

From all appearances, the Obama regime intends to turn the “international investigation” into an indictment of Russia, and the Dutch seem to be lined up behind this corrupt use of the investigation. As the Washington Post story makes clear, there is no room in the investigation for any suspicion that Kiev and Washington might be responsible.

By continuing to trust a corrupt West that is devoid of integrity and of good will toward Russia, the separatists and the Russian government have again set themselves up for vilification. Will they never learn?

As I write, more confusion is added to the story. It has just come across my screen that Reuters reports that Alexander Khodakovsky, “a powerful Ukrainian rebel leader has confirmed that pro-Russian separatists had an anti-aircraft missile of the type Washington says was used to shoot down the Malaysia Airlines flight MH17 and it could have originated in Russia.” Reuters says that this separatist commander (or perhaps former commander as later in its report Reuters describes Khodakovsky as “a former head of the ‘Alpha’ anti-terrorism unit of the security service in Donetsk”) is in dispute with other commanders about the conduct of the war.

Khodakovsky makes clear that he doesn’t know which unit might have had the missile or from where it was fired. He makes it clear that he has no precise or real information. His theory is that the Ukrainian government tricked the separatists into firing the missile by launching airstrikes in the area over which the airliner was flying and by sending military jets to the vicinity of the airliner to create the appearance of military aircraft. Reuters quotes Khodakovsky, “”Even if there was a BUK, and even if the BUK was used, Ukraine did everything to ensure that a civilian aircraft was shot down”

Not knowing the nature of Khodakovsky’s dispute with other commanders or his motivation, it is difficult to assess the validity of his story, but his tale does explain why Ukrainian air control would route the Malaysian airliner over the combat area, a hitherto unexplained decision.

After the sensational part of its story, Reuters seems to back away a bit. Reuters quotes Khodakovsky saying that the separatist movement has different leaders and “our cooperation is somewhat conditional.” Khodakovsky then becomes uncertain as to whether the separatists did or did not have operational BUK missiles. According to Reuters, Khodakovsky “said none of the BUKs captured from Ukrainian forces were operational.” This implies that Russia provided the working missile to the separatists if such a missile existed.

I find the separatists’ reply convincing. If we have these missiles why to the fools in Kiev send aircraft to bomb us, and why is their bombing so successful? The separatists do have shoulder fired ground to air missiles of the kind that the US supplied to Afghanistan during the Soviet invasion. These missiles are only capable for low flying aircraft. They cannot reach 33,000 feet.

According to Reuters, the reporting of its story was by one person, the writing by a second, and the editing by a third. From my experience in journalism, this means that we don’t know whose story it is, how the story was changed, or what its reliability might be.

We can safely conclude that the obfuscations are just beginning, and like 9 /11 and John F. Kennedy’s assassination, there will be no alternative to individuals forming their own opinion from researching the evidence. The United States government will never come clean, and the British government and presstitute media will never stop telling lies for Washington.

Washington’s bribes and threats can produce whatever story Washington wants. Keep in mind that a totally corrupt White House, over the objections of its own intelligence agencies, sent the Secretary of State to the United Nations to lie to the world about Iraqi weapons of mass production that the White House knew did not exist. The consequences are that millions were killed, maimed, and displaced for no other reason than Washington’s lie and rising instability in the Middle East.

The Obama regime lied on the basis of concocted “evidence” that Assad had used chemical weapons against the Syrian people, thus crossing the “red line” that the White House had drawn, justifying a US military attack on the Syrian people. The Russian government exposed the fake evidence, and the British Parliament voted down any UK participation in the Obama regime’s attack on Syria. Left isolated, the Obama regime dared not assume the obvious role of war criminal.

Blocked in this way, the Obama regime financed and supplied outside jihadist militants to attack Syria, with the consequence that a radial ISIL is in the process of carving out a new Caliphate from parts of Iraq and Syria.

Keep in mind that both the George W. Bush and Obama regimes have also lied through their teeth about “Iranian nukes.”

The only possible conclusion is that a government that consistently lies is not believable.

Since the corrupt Clinton regime, American journalists have been forced by their bosses to lie for Washington. It is a hopeful sign that in their confrontation with Marie Harf some journalists found a bit of courage. Let’s hope it takes root and grows.

I do not think that the United States can recover from the damage inflicted by the neoconservatives who determined the policies of the Clinton, George W. Bush and Obama governments, but whenever we see signs of opposition to the massive lies and deceptions that define the US government in the 21st century, we should cheer and support those who confront the lies.

Our future, and that of the world, depend on it.

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Congress Brings Socialism To America With This Proposed Law

Zerohedge - Wed, 07/23/2014 - 21:07

Submitted by Simon Black of Sovereign Man blog,

Sadly today I am reporting to you yet another development that seems as if we are all living within the pages of Ayn Rand’s seminal work Atlas Shrugged.

You may recall from the book that John Galt, the enigmatic protagonist, started off as a young engineer at the Twentieth Century Motor Company.

When the owner of the company died, the heirs decided to run the business according to the new enlightened principles of the time.

Primarily, they let all the workers vote on how the factory was supposed to be run and how much everyone should be compensated.

And it was soon decided that “everybody in the factory would work according to his ability, but would be paid according to his needs.”

Naturally, bright hard-working employees soon left; they found themselves working around the clock for the benefit of others who felt entitled to contribute as little as possible.

John Galt was among the first out the door.

And not long after, the once successful company went bust. No surprise.

Unfortunately this is no longer fiction. Because in the Land of the Free, the United States Congress is striving to make Atlas Shrugged a reality.

Their latest brainchild is to set up a new government bank, stuff it full of taxpayer funds, and loan the money to American workers for the exclusive purpose to help them form collectives and buy the companies they work for.

It’s called the United States Employee Ownership Bank Act.

And, straight from the bill, they aim to provide “loan guarantees, direct loans, and technical assistance to employees to buy their own companies. . .”

The goal of this legislation, curiously, is to “preserve and increase employment in the United States” which is still problematic six years after the global financial crisis.

Since September 2008, the US government has increased its debt level over 50% to $17.6 trillion.

The US Federal Reserve has increased its balance sheet four-fold, conjuring $3.5 trillion out of thin air.

All of this was supposed to create jobs. And with each of these being a failed policy, Congress is now descending into outright socialism.

To be fair, people throw around the word socialism a lot. They’ll say “Obama’s a socialist” or something like that. Often it’s taken to exaggeration.

But this legislation– the government effectively sponsoring the communal takeover of private business– is textbook socialism: private property and the means of production owned by the community.

Socialist Yugoslavia actually tried the exact same thing: worker-owned cooperatives. And the consequent failure was absolutely epic.

But politicians never let pesky things like truth get in the way of a bad idea.

It’s time to wake up smell the reality. This isn’t about panic. It isn’t about doom and gloom. It’s about facts, not fear.

Any rational, thinking person has to look at this and ask a simple question: where is this trend headed?

The evidence is pretty clear. And more and more people are starting to realize it.

People all over the world are thinking: “This is not the country I grew up in. And I don’t like the trend.”

It’s unfolding right in front of our very eyes for anyone with the intellectual courage to pay attention.

Whether it happens today, tomorrow, or five years from now is irrelevant. It’s the TREND that is so important to pay attention to.

And with that simple premise in mind, does it make sense to hold everything you’ve worked your entire life to build in a place with such a negative trend?

Your livelihood. Your savings. Your retirement. Your family’s security.

Rational people look at facts objectively and have a plan B. What’s yours?

Why "The US Should Have Already Panicked," The Sectarian Divide Mapped Out

Zerohedge - Wed, 07/23/2014 - 20:54

Meghan O’Sullivan, Harvard's Director of Geopolitics (and former deputy national security adviser for Iran and Afghanistan) warns, "The US should have already panicked." As she notes, major American economic and political interests are at stake. The erasure of the Syria-Iraq border by a group that is considered too radical for al-Qaeda, the takeover of Iraq’s second largest city by IS, the kidnapping of international diplomats, and the declaration of an Islamic caliphate in large parts of Iraq and Syria – each one of these should be a major signal about the gravity of the situation. The Sectarian Divide remains key...



O'Sullivan's conclusion...

First, the US needs to view Iraq and Syria as completely interwoven – perhaps two countries, but one theater in reality. It needs to view IS for what it is, a threat to US and regional interests, not just as a threat to the Iraqi government. This would suggest more military involvement to push back against IS. Both in Iraq and Syria, the crisis is ultimately a political one, not a military one, so changing the politics is also key. But the US should not think that it can sequence military help only to follow political reform – the two must come together given the urgency of the situation.


While the United States continues to deliberate about its next moves, others – Syria, Iran, Russia – have been filling the vacuum in ways that are not aligned with US interests. Along with political pressure, more US military assistance to Baghdad and even to the Kurds will give the US political leverage when it comes time to help the Iraqis renegotiate their political compact. The moment in which the US can make a difference and truly affect the outcome is narrowing dramatically every day.

Source: Goldman Sachs

Now Is The Time To Get Into Gold Stocks

Dollar Vigilante - Wed, 07/23/2014 - 20:50

[Editor's Note: The following post is by TDV Editor-in-Chief, Jeff Berwick]

It has been roughly three years since I’ve written, excitedly, about precious metals stocks (which has turned out to be quite prescient).

I’ve never emphatically said to sell, though, either… which is regretful but the TDV portfolio is not a short term trading letter and we will always have a percentage of our portfolio in this sector, through thick and thin, until The End Of The Monetary System As We Know It (TEOTMSAWKI) nears its final conclusion.

But aside from talking about expatriation, offshore banking and corporations, second passports and commenting on how badly the Western world is devolving into a fasco-communist police state I have really only talked about a few specific “investment” areas for the last few years.

As you know, I’ve talked emphatically about bitcoin (and our long awaited bitcoin manual – free to subscribers - will be out very soon) since 2011 (when it was just $7) and the collapsing drug war (which I see as a symptom of TEOTMSAWKI and a worldwide awakening) has gotten me extremely excited about medical marijuana (MMJ) stocks (of which we will now be focusing on more specifically at TDV Golden Trader).

And, of course, I’ve never once talked negatively about owning precious metals bullion as an important safety hedge (but always admonish you to make sure you geopolitically diversify as much as possible – as we have written about at Getting Your Gold Out Of Dodge). But I’ve nary said a peep about precious metals stocks in years.

The reason? Bluntly, there just hasn’t been much to be excited about in this market in the last three years. Bre-X could be wrought from the ashes and say they just found 200 million ounces of gold in Indonesia again and the market would have sold it down from $0.10 to $0.06.

In fact, in my 24 years of following the precious metals stock sector I have never, ever seen it as bad as it has been the last few years. With the exception of the Vancouver mining show in January which I go to each year as a tradition I haven’t even attended a mining conference in years. The last time I attended one it was like walking into a funeral… of someone that no one liked! There was hardly anyone there and those who were there, with the exception of people like the incredibly smart billionaire anarcho-capitalist, Rick Rule (who loves a good bear market almost as much as he loves a good bull market), looked like their mother just died at the hands of their dog who then got shot by the police. In fact, just yesterday, one of the biggest gold mining conferences, the Hard Assets Investment Conferences announced that they will not be doing any more shows!

But lately there has been a subtle change. Not a major sea change… more like a small ripple rocking your sailboat after weeks of doldrums in stagnant, motionless water out in the Pacific. Like you almost forgot what the wind or a wave felt like.


Hardly anyone noticed, but that sly fascist George Soros was reported to have sold banks and been buying gold stocks in the first quarter of this year.

Russia has smartly been selling off nearly all their Treasury Bills of Confiscation and has been buying gold at an unprecedented rate, purchasing 900,000 ounces ($1.17 billion) in April.

We’ve seen two of the stocks in our TDV Premium portfolio bought out in the last few months. B2Gold (T.BTO) quietly bought out Papillon Resources in June and in April Goldcorp (NYSE:GG) and Agnico Eagle (NYSE:AEM) had a bidding war to buy out Osisko Mining.

And one stock I had been following due to my connections to some of its shareholders, Euromax Resources (V.EOX), which had been clanging about between $0.09 and $0.30 for the last year spiked from $0.14 to $0.75 in one day on the release of a broadly expected pre-feasibility report just a few weeks ago.

So, after years of a terrible bear market in the gold stocks nearly everyone has given up now. I get the sense there is no one left who wants to sell on many stocks. The Hard Assets conference shuttering its business yesterday may ultimately ring the final bell for the lack of interest in this market. But, as stated just above, something appears to be afoot… quietly… a small ripple has begun.

Buyouts, takeovers and dramatic price rises on news are happening in this space for the first time in years… and hardly anyone has noticed.


A quick look at the charts showed that gold bullion itself hasn’t been this low versus stocks since November, 2008.

When you look at the major gold stocks versus the S&P the picture is even uglier.

And, well, when you look at the junior gold mining stocks versus the S&P over the last three years… avert your eyes!

It doesn’t get much uglier than that.

But, as I stated above, I sense something is afoot. And I tend to have a knack for spotting shifts like this.

Certainly in risk terms I have never seen less price risk in this gold mining market than today… and that includes the depths during 2008/2009 which seemed apocalyptic. That, combined with some stocks now doubling, tripling or much more on little major news is telling me that it is time to get back in this market.

I am not expecting a massive bull to come out of nowhere in the next few weeks or even months but it is times like these before anyone else even notices the turnaround that the big money can be made. There will be doubles, triples and more before the general investing public even begins to notice and start to pile in.

For this reason, TDV Senior Analyst, Ed Bugos, and myself, will be on the prowl more than ever looking for dramatically underpriced high quality deals.


The best way to truly hit a home run if I am right is to invest in private placements of select companies which offer warrants.

As one example of how I have done this before, on June 2, 2009, at the very depths of the last ultra-bear market in the junior gold miners I grit my teeth and invested $10,000 into a private placement of Copper Fox Metals (V.CUU) at a price of $0.05 with an option to buy another share (warrant) for $0.07.

Less than two years later it hit $2.80 per share.

If I had sold at the top (which no one ever does, but if) I would have sold my original shares for $560,000 and profited an extra $400,000 on the warrants… or over $1 million from a $10,000 investment.

If you think that was good, however, I remember a friend of a friend buying $5,000,000 of that private placement! Ernesto Echavarria a businessman based in Sinaloa, Mexico could have, if he sold at the top, made a profit of nearly half a billion dollars! It since, of course, has dropped significantly in this bear market.

The point being, however, is that it is times like now that absolute fortunes can be made by investing in private placements of these companies with warrants which essentially doubles your profit potential with zero extra risk.


After a three year hiatus I will actively, but surgically, with the great help of Ed Bugos, again be positioning myself into junior gold stocks… and preferably private placements in them over the coming months as well as offering TDV Premium subscribers access to the deals that Ed uncovers.

In fact, today, for the first time in TDV’s history we have negotiated an exclusive private placement with a gold mining company that Ed believes has 10-bagger+ potential in the next year and TDV Premium subscribers (you can subscribe here for only $25/month – Basic subscribers can email to upgrade) will be the only ones with access to it. Of course, for those who are not deemed “accredited investors” by the people who own you (the government) you can also just buy in the market.

And we will be doing many more over the coming months.

And so, after many years away from this market I am publicly throwing my hat in the ring and putting my money where my mouth is and am coming back into the gold/silver stocks sector.

I’ve focused more on Bitcoin and Bud (marijuana stocks)… two pillars of my five “Killer B’s” for the last while but I am now positioning myself and our subscribers in one of the other key B’s, Bullion.... and more specifically, the precious metals stocks.

So, you’ll be seeing me back talking about this sector and attending the few mining conferences that are still left standing. I just accepted an invitation to Keynote at the Silver Summit in Spokane this October… between the bitcoin conferences, medical marijuana conferences and liberty events I regularly attend it means I’m going to be busy.

But, TEOTMSAWKI only comes around so often and never before like this so I will keep pounding the pavement and working to create wealth and salvage what we have now… I’ll take a rest when the dollar and the Federal Reserve are good and dead.

Questions or comments? Join us at The Dollar Vigilante. 

Jeff Berwick

Senate Democrats Push To Triple Israel's Iron-Dome Aid To $576 Million

Zerohedge - Wed, 07/23/2014 - 20:30

U.S. Senate Democrats included $225 million for Israel's Iron Dome rocket interception system in an emergency funding bill on Tuesday, which, as Bloomberg reports, in addition to the $351 million that’s already under discussion for Iron Dome in fiscal 2015 would bring the potential new funding to $576 million, compared with the $176 million currently requested by the Pentagon. "Iron Dome has saved countless Israeli lives," Defense Secretary Chuck Hagel told Senate Majority Leader Harry Reid in a letter dated yesterday and while the Iron Dome system is built by Haifa-based Rafael Advanced Defense Systems Ltd, an agreement with Israel calls for more than half the funds the Pentagon provides for Iron Dome to be spent in the U.S..


As Reuters reports,

U.S. Senate Democrats included $225 million for Israel's Iron Dome rocket interception system in an emergency funding bill on Tuesday that also cut $1 billion from President Barack Obama's request for $3.7 billion to deal with thousands of undocumented child immigrants.


"Israel is an essential American ally and needs these assets to defend itself," said Maryland Democratic Senator Barbara Mikulski, chairwoman of the Senate Appropriations Committee, in a statement.




U.S. lawmakers tend to be heavily pro-Israel. However, the fate of the $225 million - and other funding in the legislation - is uncertain in the Republican-controlled U.S. House of Representatives, where there is stiff opposition to an increase in spending tied to the Democratic president's request.

This almost triples the aid for Israel (as Bloomberg reports),

The money -- which would be included in an emergency spending bill directed mostly at child-migration issues on the U.S.-Mexico border -- would be in addition to the $351 million that’s already under discussion for Iron Dome in fiscal 2015. It would bring the potential new funding to $576 million, compared with the $176 million requested by the Pentagon for the year that begins Oct. 1.


The added $225 million for the current fiscal year would be used “to accelerate production of Iron Dome components in Israel to maintain adequate stockpiles,” Hagel said in the letter.

“Iron Dome has saved countless Israeli lives,” Defense Secretary Chuck Hagel told Senate Majority Leader Harry Reid in a letter dated yesterday

An agreement with Israel calls for more than half the funds the Pentagon provides for Iron Dome to be spent in the U.S.

*  *  *
We can almost hear the teleprompter now that Republicans (should they block this spending) would have the blood of dead Israeli children on their hands...

Senate Democrats Push To Triple Israel's Iron-Dome Aid To $576 Million

Zerohedge - Wed, 07/23/2014 - 20:30

U.S. Senate Democrats included $225 million for Israel's Iron Dome rocket interception system in an emergency funding bill on Tuesday, which, as Bloomberg reports, in addition to the $351 million that’s already under discussion for Iron Dome in fiscal 2015 would bring the potential new funding to $576 million, compared with the $176 million currently requested by the Pentagon. "Iron Dome has saved countless Israeli lives," Defense Secretary Chuck Hagel told Senate Majority Leader Harry Reid in a letter dated yesterday and while the Iron Dome system is built by Haifa-based Rafael Advanced Defense Systems Ltd, an agreement with Israel calls for more than half the funds the Pentagon provides for Iron Dome to be spent in the U.S..


As Reuters reports,

U.S. Senate Democrats included $225 million for Israel's Iron Dome rocket interception system in an emergency funding bill on Tuesday that also cut $1 billion from President Barack Obama's request for $3.7 billion to deal with thousands of undocumented child immigrants.


"Israel is an essential American ally and needs these assets to defend itself," said Maryland Democratic Senator Barbara Mikulski, chairwoman of the Senate Appropriations Committee, in a statement.




U.S. lawmakers tend to be heavily pro-Israel. However, the fate of the $225 million - and other funding in the legislation - is uncertain in the Republican-controlled U.S. House of Representatives, where there is stiff opposition to an increase in spending tied to the Democratic president's request.

This almost triples the aid for Israel (as Bloomberg reports),

The money -- which would be included in an emergency spending bill directed mostly at child-migration issues on the U.S.-Mexico border -- would be in addition to the $351 million that’s already under discussion for Iron Dome in fiscal 2015. It would bring the potential new funding to $576 million, compared with the $176 million requested by the Pentagon for the year that begins Oct. 1.


The added $225 million for the current fiscal year would be used “to accelerate production of Iron Dome components in Israel to maintain adequate stockpiles,” Hagel said in the letter.

“Iron Dome has saved countless Israeli lives,” Defense Secretary Chuck Hagel told Senate Majority Leader Harry Reid in a letter dated yesterday

An agreement with Israel calls for more than half the funds the Pentagon provides for Iron Dome to be spent in the U.S.

*  *  *
We can almost hear the teleprompter now that Republicans (should they block this spending) would have the blood of dead Israeli children on their hands...

Head Doctor Fighting Africa's "Out Of Control" Ebola Epidemic Contracts The Virus

Zerohedge - Wed, 07/23/2014 - 20:00

A month ago we mapped the current state of the Ebola crisis in Africa, which has claimed over 600 lives in recent months, and which according to the director of operations of medical charity Médecins Sans Frontières, Bart Janssens, has grown into an "epidemic which is totally out of control." He added that "Ebola is no longer a public health issue limited to Guinea: it is affecting the whole of West Africa," urging WHO, affected countries and their neighbours to deploy more resources especially trained medical staff.


Tragically, the "out of control" epidemic has taken a major turn for the worse when the head doctor fighting the Ebola epidemic in Sierra Leone has himself caught the disease, the government said.

Health workers take blood samples for Ebola virus testing at a screening
tent in the local government hospital in Kenema, Sierra Leone, June 30, 2014.

According to Reuters, the 39-year-old Sheik Umar Khan, hailed as a "national hero" by the health ministry, was leading the fight to control an outbreak that has killed 206 people in the West African country. Ebola kills up to 90 percent of those infected and there is no cure or vaccine.

Khan, a Sierra Leonean virologist credited with treating more than 100 Ebola victims, has been transferred to a treatment ward run by medical charity Medecins Sans Frontieres, according to the statement released late on Tuesday by the president's office.


Health Minister Miatta Kargbo called Khan a national hero and said she would "do anything and everything in my power to ensure he survives".


Khan told Reuters in late June that he was worried about contracting Ebola. "I am afraid for my life, I must say, because I cherish my life," he said in an interview, showing no signs of ill health at the time.


"Health workers are prone to the disease because we are the first port of call for somebody who is sickened by disease. Even with the full protective clothing you put on, you are at risk."

The tragic escalation was not limited to Khan: three days ago, three nurses working in the same Ebola treatment centre alongside Khan died from the disease.

The only good news, if any, is that even as the epidemic which has raged for months, and now appears to be out of control, it has not spilled out of Africa into other continents yet. On the other hand both the US and now China appears to have a problem with a different viral scourge: bubonic plague. In any event, a deadly viral breakout across three continents may be just what the Keynesian doctor ordered to blast the global economy into that long-delayed "recovery."

China Seals Off Yumen City After Outbreak Of Bubonic Plague

Zerohedge - Wed, 07/23/2014 - 19:15

With Colorado suffering from pneumonic plague, and the dreadfully sad report of Sierra Leone's chief Ebola doctor contracting the virus, it appears China is taking no chances. As Yahoo reports, Chinese officials have blocked off parts of Yumen, a city in northwest China, preventing about 30,000 of the city's people from leaving after one resident died from bubonic plague. About 150 people who had contact with the plague victim have been placed under quarantine but US experts are perplexed at the response, "there's something here that we don't know, because this seems a very expansive response to just one case."

As Yahoo reports,

A city in China has reportedly been sealed off after one resident died from bubonic plague, but this way of trying to contain the disease is puzzling to infectious disease experts, who say the response seems extreme given the information released about the case.


According to news reports, Chinese officials have blocked off parts of Yumen, a city in northwest China, preventing about 30,000 of the city's people from leaving.


A man in the city became ill after he handled a dead marmot (a large wild rodent), and died last week from bubonic plague. No other cases of the plague have been reported, according to the Guardian. About 150 people who had contact with the plague victim have been placed under quarantine.

But US experts are wondering if there is more going on...

Dr. William Schaffner, a professor of preventive medicine and infectious diseases at Vanderbilt University Medical Center in Nashville, Tennessee, said that sealing off a city is a rather extreme set of precautions to take for a single case of bubonic plague. "I feel there's something here that we don't know, because this seems a very expansive response to just one case," Schaffner said.


"We have cases of bubonic plague from time to time in the United States, and they don't require this kind of public health response," Schaffner said. In recent decades, there have been an average of seven cases of bubonic plague a year in the United States, the CDC says.

*  *  *
Schaffner wondered whether Chinese public health authorities had more information that they have not released, such as reason to suspect more cases. "I'm very puzzled at the circumstances here, and what the actual hazard is."

july 23/a gain of .76 tonnes of gold into GLD/a loss of 1.583 million oz of silver/Turmoil continues in the Middle east and Putin recalls Duma

Harvey Organ - Wed, 07/23/2014 - 19:12
Gold closed down $1.60  at $1304.50 (comex to comex closing time ). Silver was down 2 cents at $20.95 In the access market tonight at 5:15 pm gold: $1305.00 silver:  $20.92 GLD: a big gain of .76 tonnes of  gold inventory at the GLD (tonnage now 805.44) tonnes). SLV : we lost 1.583 million oz of   silver  inventory at the SLV . We have two major hot points: Israel's Harvey Organ

The Decline Of Influence

Zerohedge - Wed, 07/23/2014 - 18:50

Submitted by James E Miller of Mises Canada,

The world is seemingly aflame in chaos right now. The Israeli military has invaded the Gaza strip after the breaking of an 18-month cease-fire agreement. Which side broke the accord is still an open question. A commercial airliner was shot down over Ukrainian airspace. Western media and politicians assume the indefensible act of violence was committed by Russian President Vladimir Putin in an effort to conquer the contiguous area. In Iran, the government is ostensibly pursuing nuclear arms, much to the consternation of globalist tinkerers. Next door, in the Devil’s playground of Iraq, radical Islamists are causing massive amounts of destruction, including destroying historic churches from the apostolic times.

All of this disorder is the fault of waning American prestige according to Robert Fulford. In his latest column for the National Post, Fulford laments the indifference on display by President Barack Obama as violence erupts in planet’s most dangerous corner. He writes that Washington is no longer viewed as a legitimate threat by much of the world. Under the Obama presidency, he attests, “U.S. policy has become erratic and half-hearted, subject to arbitrary change without notice.” Fulford notes the lack of a strong response to the Syrian civil war as just one example where America backed away from the limelight. If the U.S. doesn’t soon take back its leadership role on the global stage, the “future looks increasingly dire.”

Fulford is far from alone in his fault-finding. Journalists from both political camps have been critical of the President of late. Arch neoconservative Charles Krauthammer called Obama’s comments on the downed Malaysia Airlines jetliner “passive” and demonstrative of a governing philosophy of disinterest. James Kirchick – the token leftist warmonger who takes great pleasure in American might displayed abroad – demanded it’s finally time for “the West to stand up to Putin” starting with U.S.-backing of the Ukrainian military.

All of these critics assume that America is capable of flipping a switch and rearranging the world’s affairs to meet its own standards. They don’t recognize the path the U.S. imperial state is on is slowly coming apart. It’s no longer the 1950s. The ceiling on Washington’s budget is getting closer by the day. The national debt is $17 trillion and counting; an unfathomable number that is impossible to maintain in perpetuity. The domestic economy is still sluggish from the 2008 market crash. The time of America’s dominance may soon be coming to an end. And the truth has yet to hit the people employed in the business of imperium.

The talking heads who opine on Sunday morning talk shows are still stuck in Cold War-mode. They refuse to face the truth about foreign policy: that there are always too many functioning  gears for good and evil to be readily apparent; and that truth and fiction often trade places depending on one’s preconceived agendas. The so-called experts forget the advice of realist Walter Lippmann who noted that rational foreign policy “consists in bringing into balance, with a comfortable surplus of power in reserve, a nation’s commitments and the nation’s power.”

More importantly, the media chattering class doesn’t seem to realize the conflicts taking place today are not the result of warring factions. The people of Iran, Ukraine, Israel, Palestine, Russia, and every other country under the influence of Western power didn’t originate their gripes from out of thin air. The incessant meddling of governments, specifically Washington, have fomented the fights we see today. Many are the direct, or indirect, result of overanxious global planning with scant knowledge of possible unintended consequences. Should the Obama Administration heed the complaints of interventionists longing for action, the result could be more death, more violence, and less peace.

The clashes going on currently have the mark of U.S. government meddling all over them. In Ukraine, the conflict between nationalists and separatists sympathetic to Russia is an immediate consequence of the overthrowing of President Viktor Yanukovych. The coup was surreptitiously supported by Washington and its sock puppet batch of non-government organizations. The annexation of Crimea and ongoing violence in the area can be traced back to Western agitation of Russia.

Iraq is more of the same calamity. Former dictator Saddam Hussein was no angel, but under his rule, radical Islamic elements were kept largely at bay. His toppling by U.S. forces has left the birthplace of civilization anything but civilized. The country, which was arbitrarily formed by European colonial powers following World War I, is slowly lurching toward a three-way split along ethnic and religious lines.  Terrorists with allegiance to the Islamic State of Iraq and Syria are wreaking havoc across the country, a spillover effect of embattled nations such as Libya. The latter battlefield is, of course, the result of Western intervention financed primarily by the U.S. government.

The experiment where America takes up where the British Empire left off appears to be finally coming to an end. It was never designed to work in permanence. The contradictions in intervention are not bringing tranquility or even supremacy. The control freaks beside the Potomac have allowed hubris to take hold. Their grip on other countries is loosening due to the very disarray they created. The irony is about this new reality is the outcome was easy to predict. Arrogance over one’s own intelligence is always a human failing. It was never possible for a cabal of political actors to guide the world’s affairs smoothly. As Friedrich Hayek wrote, “[N]o human mind can comprehend all the knowledge which guides the actions of society.”

If I had to take a guess at what drives the yearning for worldwide dominance, I would say it’s ideology. Everyone has their own, but the fervor at which interventionists opine is more passionate than most. They don’t yearn for just control, but seek a complete transformation of other peoples and cultures so that a uniform attitude is adopted by the world’s populace. Much of the propagating is done under the guise of human rights. With everyone kowtowing to the same lies of democratic celebration, liberty is dissolved.

From Alexander the Great to British rule, history, if it has a lesson, teaches us that no group of men can conquer the world. It’s simply too big, too vast, and too complex. Humanity is far too restless to sit and take orders from dictators halfway across the globe. Likewise, the outcome of intervention does not exist in a vacuum. It often has far-reaching effects that can’t be known in advance. Those decrying the decline of American power on the global scene have yet to learn these valuable lessons.

The mindset that wishes one country to have an iron-grip on world affairs is horribly naïve. Empires are not free. Washington’s credit card can’t be charged to infinity. The need for prudence is growing larger by the day. For the sake of average Americans, and peaceful citizens across the world, let’s hope it gets here sooner than later.


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