Thursday, February 27, 2014

This Will Stun The World & Bring Chaos To Global Markets

In China they have just drained liquidity again with an $8 billion repo. The Chinese financial system is a massive bubble, and now the authorities are trying to restrict lending. But they will also fail because the banking system and the shadow banking system are full of debt that will default. That will just lead to even more QE in China.
The Fed is still optimistic about the US economy and confident about the tapering decision. They continue to focus on the 6.5% unemployment rate, when the real unemployment rate is 23%. But I can see US authorities continuing to insist that US unemployment is near 6% levels even as tens of millions of people in the United States line up to the modern-day soup kitchens of the food stamp program.

If we look at housing starts in the US , they had their biggest fall in three years, and mortgage applications were the lowest in 19 years. The US economy is only showing some temporary strength due to increases in government and household borrowing.

We know that government debt and the Fed’s balance sheet are growing exponentially, but household debt is also rising rapidly. We have just seen the highest rise in six years to $11.5 trillion. Mortgage debt is also up, and so is auto debt. So the US is continuing its spending based on debt. This very unsound and untenable trend will soon lead to the US dollar losing its value.

If we move to the emerging markets, for them to survive they will need growth in industrialized countries, which will not happen. So emerging markets will be another catastrophe not only economically but also socially.

Eric, I’ve stressed many times to get money out of the banking system and pension system. Country after country are planning to introduce bail-ins and forced savings systems. In Australia the treasurer has suggested instead the ‘Superannuation’ pension funds for financing government projects. The US has the ‘myRA’ system now and there will be more of this in coming years.

I’ve talked about protectionism previously, Eric, and it will happen around the world. In 2016, the US will require all foreign banks to keep capital in the US, which will be frozen. Thus the US regulator will, beginning in 2016, control foreign banks. If European banks reciprocate and do the same, bank lending will be reduced substantially worldwide. This of course is extremely deflationary, and the consequences of that will be even more QE eventually.

- Source, Egon Von Greyerz via King World News, read more here:

Tuesday, February 25, 2014

How Cash Would Be Seen by the Media if Invented Today

Breaking News: Bizarre, Shadowy, Paper-Based Payment System Being Rolled Out Worldwide!

World governments announced a plan today to allow citizens to anonymously carry parts of their wealth on their person and exchange it with others using small pieces of colourful paper.

The paper is printed with nationalistic and Masonic imagery, along with numbers that purportedly represent the amount of wealth each piece of paper represents (if the paper is not a counterfeit).

Each of these pieces of paper is formally a ‘note’ from each nation’s central bank, but they are also attracting the term ‘cash’. This is a technical matter that is too complex to cover in our basic primer. Suffice it to say, that it is representative of the complexity and user-unfriendliness of this new system.

- Source, Coindesk, read more here:

Sunday, February 23, 2014

Mt. Gox CEO Mark Karpeles Resigns from Bitcoin Foundation Board

Mt. Gox CEO Mark Karpeles has just resigned from his position as a board member with the Bitcoin Foundation.

The Foundation posted the announcement on its blog today at 4:00AM GMT:

“Effective immediately, Mark Karpeles has submitted his resignation from the board of directors. We are grateful for his early and valuable contributions as a founding member in launching the Bitcoin Foundation.”

“As CEO of MtGox Co. Ltd. (Japan), he held one of the three elected industry member seats. Further details, including election procedures, will be forthcoming.”

There has still been no notice since 20th February as to when and if Mt. Gox will resume bitcoin withdrawals for its users. While there were reports of tests and customers receiving withdrawals over the weekend, the company had not made any formal announcement on the issue at the time of writing.

The price of bitcoin on Mt. Gox also rose from its sub-$100 level on Friday to more than $300 by the end of Sunday. It was around $250 at the time of writing.

- Source, CoinDesk read more here:

Wednesday, February 19, 2014

Doug Casey and Max Keiser - Staged Rumble in Wall Street Jungle

In this episode of the Keiser Report, Max Keiser and Stacy Herbert compare Wall Street to World Wrestling Entertainment where alleged competitors adopt stage personas and meet each other in a choreographed, scripted and over-acted competition. And just as people are betting on the pre-determined outcomes in the WWE ring, they're doing the same in the rigged financial markets. In the second half, Max interviews Doug Casey of about his new book, RIGHT ON THE MONEY. They also discuss Argentina, the dollar, art and gold.

- Source, Russia Today:

Monday, February 17, 2014

Here's What It Looks Like When Your Country's Economy Collapses

Argentina is a country re-entering crisis territory it knows too well. The country has defaulted on its sovereign debt three times in the past 32 years, and looks poised to do so again soon.

Its currency, the peso, devalued by more than 20% in January alone. Inflation is currently running at 25%. Argentina's budget deficit is exploding and, based on credit default swap rates, the market is placing an 85% chance of a sovereign default within the next five years.

Want to know what it's like living through a currency collapse? Argentina is providing us with a real-time window.

So, we've invited Fernando "FerFAL" Aquirre back onto the program to provide commentary on the events on the ground there. What is life like right now for the average Argentinian?

- Source, Peak Prosperity:

Saturday, February 15, 2014

Why Your Alt-Coin Is No Good Here

Stanley Kubrick is known for being a filmmaker and not a cryptographer. However, Kubrick’s films have hidden “fractal” narratives with coded messages that Rob Ager has been deciphering through his amazing film analysis on his website Collative Learning and on Youtube. In “Mazes, Mirrors, Deception and Denial: Chapter 15: This is our Gold Ballroom” Mr. Ager puts forth his theory that there is a sub-plot in The Shining that revolves around the gold standard. The Shining was released in 1980, not long after the U.S. dollar’s fixed value against gold under the Bretton Woods system ended. More specifically, President Nixon announced on August 15, 1971 the end of the gold standard.

Kubrick’s films, which can be interpreted on different levels, use dialogue that can have more than one meaning:

“Your money’s no good here.” said the bartender Lloyd to Jack Torrance (Jack Nicholson) in the Overlook Hotel’s “Gold Room.”…“Orders from the house.”

- Read the full article here:

Thursday, February 13, 2014

Jim Willie - Government Forced IRA Will Include Toxic Fannie Mae Bonds

There is one person who really has his finger on the pulse of what is happening in the markets. Jim Willie of The Golden Jackass studies the markets besides having insiders give him information about what is really going on.

- Source:

Wednesday, February 12, 2014

India’s Government Claims the RBI is Examining Virtual Currencies

The Indian government has claimed that the Reserve Bank of India (RBI) is examining the legal and security ramifications of virtual currencies.

The Hindu reported that Indian Finance Minister P Chidambaram made the following statement to the Rajya Sabha, India’s Upper House of Parliament:

“The RBI is presently examining the issues associated with the usage, holding and trading of virtual currencies, including bitcoins, under the extant legal and regulatory framework of the country, including foreign exchange and payment systems laws and regulations.”

Last December, the RBI issued an advisory cautioning Indians against the volatility of all virtual currencies. A bitcoin fan filed a claim pressing the RBI for clarificationon this advisory, which alluded to the legitimacy of bitcoin.

Mr Na “Naavi” Vijayashankar is the lawyer representing that case. He claimed the latest statement from Chidambaram is quite neutral:

“I don’t see anything different except now we can say that the matter is under the attention of the biggest monetary authority in India, which is the Finance Minister.”

- Source, Coindesk. Read the full article here:

Get Bitcoin for Your Old Electronics with Glyde

Glyde, an eBay-like startup that lets users sell used electronics via its online marketplace, has now made bitcoin available as a payment option.

“The way we can help introduce people to bitcoin makes a lot of sense and is very exciting,” Drew Lieberman, Glyde’s CEO, said in an interview with CoinDesk.

He added:

"We want to play a part in helping to spread the word, to evangelize, and let people know about bitcoin.”

- Source, CoinDesk, read more here:

Overstock to Launch New Rewards Scheme for Bitcoin Buyers

Online outlet store is to launch a special rewards program that will give bitcoin buyers a 1% cashback in the form of Club O dollars, the company’s in-house rewards points.

Speaking to CoinDesk, Overstock CEO Patrick Byrne said the scheme is expected to debut in approximately four weeks, although he did not commit to a definitive timeline.

The program will not provide an instant discount on orders, but will instead give 1% of the total purchase value back to buyers to be applied to future purchases. Byrne did not provide further details of how the program would work, or whether it will be able to be used in conjunction with other company rewards schemes.

The announcement comes as Overstock nears a total of $1m in sales paid for in bitcoin. Overstock began accepting bitcoin on 9th January – garnering $130,000 in total first-day spending.

Byrne declined to provide hard figures for Overstock’s current sales total, citing legal reasons, but did estimate that it will likely pass the $1m mark by this weekend at its current bitcoin sales rate.

- Source, Coindesk, read more here:

Tuesday, February 11, 2014

Ben Bernanke's TRUE Legacy

Ben Bernanke leaves office on January 31. This video sets the record straight. Please add your thoughts on his tenure in the comments section below... "Helicopter Ben" performed by Elaine Diane Taylor.

- Source, Hidden Secrets of Money:

Sunday, February 9, 2014

Max Keiser - Print or Taper?

Max Keiser and Stacy Herbert discuss the print, taper, print, taper talk that has led to the economic and financial chaos that finds the Financial Times opining that one should do like the Bundesbank did and demand physical delivery of your gold before your wealth becomes pixilated. In the second half, Max interviews John Mauldin, author of CODE RED: How to Protect Your Savings From the Coming Crisis, about money printing, inflation/deflation, gold prices and wages.

- Source, Russia Today:

Friday, February 7, 2014

Bill Fleckenstein - This Will be the Last FED Taper

The S&P got a bid last year, thanks to the fact that the Fed printed $1 trillion, now the Fed thinks everything is fine and so they are trying to taper. Of course the only reason the market went to where it did was because of all the money they printed.

So I think this will be the last taper because the markets are going to continue to be roughed up. A lot of hot money has been spilled around the globe, and now it’s now coming back. One of these days the discussion is going to take place where people say, ‘The Fed can’t stop printing money. They can’t leave ZIRP (Zero Interest Rate Policy), but what they do is ineffective.’

So at some point people will see the Fed is trapped and that’s really going to be when things get interesting. Right now, even though markets are under pressure, people still have total confidence in the Fed and bonds are rallying. This is an extremely important moment, even though nothing really appears to have changed, because the Fed is still revered.

- Source, Bill Fleckenstein via King World News:

Wednesday, February 5, 2014

Chinese Gold Demand is Exceeding Global Production

Right now I’m focused on two things: The first is that final Chinese demand as approximated by the gold that goes through the Shanghai Exchange now exceeds estimated global mining production. We had been talking late last year when China had gotten to the point where they were buying roughly 100% of mining production, but now they clearly exceed it...
This should bring forward the date at which the gold suppression scheme comes to an end.

The second thing I’m focused on is what we’ve been discussing for the last several months is now starting to appear in the mainstream media. I think it was on Saturday that the Financial Times ran a piece in which the basic theme was that the open interest, the contracts that are outstanding and could theoretically could be converted into physical gold, greatly exceed Comex inventories.

- Source, William Kaye via King World News, read more here:

Monday, February 3, 2014

Jim Sinclair -The Emerging Markets Will Implode if Taper is Serious

Gold expert Jim Sinclair emerged from a lengthy hiatus from public commentary Tuesday to warn readers that the major US markets will completely implode should Janet Yellen follow through on the Bernanke Fed’s threats to fully taper QE. 

Sinclair states that should Yellen taper seriously now, the emerging markets will implode. Should the emerging markets implode,the US major markets will also implode. The dollar would lead on the downside.

- Source, JSMineset:

Saturday, February 1, 2014

More Taper, Ben Bernanke Announces Additional $10 Billion Taper

  • The Fed tapers QE an additional $10 Billion to $65 billion/month
  • In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to make a further measured reduction in the pace of its asset purchases.
  • Beginning in February, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $30 billion per month rather than $35 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $35 billion per month rather than $40 billion per month.

- Source, Silver Doctors: