The Golden Truth: Here Is The Bullion Bank Cartel's Worst Nightmare...

Wednesday, April 6, 2011

Here Is The Bullion Bank Cartel's Worst Nightmare...

Competition from one around the world. Gold futures volumes on the Dubai Gold and Commodities Exchange is rapidly growing. In time it will provide free market competition to the Comex and limit the ability of the big U.S./European bullion banks' ability to manipulate the gold and silver markets. While not even close yet in scale to Comex volumns, the growth is robust:

A key highlight of March 2011 was the strong performance of DGCX Gold futures, which grew 51% year-on-year and 57% on February 2011 to reach 49,011 contracts. Silver futures also witnessed robust growth rising 84% year-on-year and 102 % from last month to reach 4,370 contracts. LINK

To me it's also indicative of the fact that OPEC countries are increasingly looking for ways to swap out of all of the dollars they take in from selling oil. The demand for physical gold being reported by these countries supports that premise.

On another note, I'm seeing a lot of signs that the banking gods are trying to reinflate the housing bubble. I heard an ad on the radio last week by some bank promoting low-interest home equity loans. And I just received this note in my email from one of the banks I with which I do business: HELOC promotion, and have a really good rate of 3.75 Variable APY, no points, no annual fees, no appraisal fee only $100 application fee.

I have to laugh at this. I've been meaning to do a blog post discussing the fact that credit standards in the banking system have collapsed again. There are all kinds of examples, but the coup de grace is the revival of home equity loans. Banks have capital available and risk-appetite for this because the Fed/Government inteferred with free market process by saving the big banks. Not only did they not have to suffer for their sins, but they survived and are taking our system down the same path that led to the 2008 banking system collapse. Twain was wrong, sort of, history rhymes AND repeats.

10 comments:

Joe KernanWednesday, 06 April, 2011
Time to invade Dubai!
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Dave in DenverWednesday, 06 April, 2011
Ya i actually meant to allude to that possibilty but i was distracted by the home equity loan email
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williamWednesday, 06 April, 2011
What options to the banks have, other than brake out the ol ninja loans.
No income no jobs loans since most people have neither.
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Dave in DenverWednesday, 06 April, 2011
The banks wouldn't have any options if the Govt let the free hand of capitalism do its thing. We are all worse off in the long run for any Govt interference.
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AnonymousWednesday, 06 April, 2011
I don't think anyone can escape this coming Financial Tsunami.

As the first commenter had alluded, how long do you think the US military hegemony can last?

It looks more and more like the military-industrial complex backs the dollar bar none these days.
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AnonymousWednesday, 06 April, 2011
Dave--

In a new interview over at King World News, Marc Faber echoes your quotation about Central Banks and the Fed:

"Mr. Bernanke is a murderer, he's a murderer of the (American) middle class and working class."

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/6_Marc_Faber_-_Mr._Bernanke_is_a_Murderer_of_the_Middle_Class.html
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QueenbeeWednesday, 06 April, 2011
Hi Dave,

The crash of 1929 was in October and our was in October 2008 so we are less than three years into the depression. Take a look back in history as to what shape the US economy was in when it was 1932. If history does repeat we have more wars to start.
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QueenbeeWednesday, 06 April, 2011
Here is a wikilink and the winter of 1932 was not kind to us
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AnonymousThursday, 07 April, 2011
It is amazing - what an arrogant, condescending leader Obumma is, always was or has become?? It amazes me that he has any respect at all still. And in fact very out of his depth with regards to solutions to any problems!!!

http://www.zerohedge.com/article/obamas-advice-those-complaining-over-surging-gas-prices-suck-it

Does anybody really think he will have a second term??

It is amazing sitting on the outside and looking in.
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AnonymousThursday, 07 April, 2011
Another point regarding Gold vs Silver. The powers trying to frustrate the price of gold in order to calm silver demand may have to rethink their strategy. I have been reading more and more about people already in the precious metals who are converting gold into silver. I own both. But they will be forced to let gold run to take the heat of silver, if that is at all possible.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.