General experience suggests that the economy has not recovered. As shown in Commentary No. 459, the official recovery simply is a statistical illusion created by the government’s use of understated inflation in deflating the GDP, which overstates deflated economic growth...The long-term fiscal solvency issues of the United States - where GAAP-based accounting shows annual deficits running in the $5 trillion range—are not being addressed, and the politicians currently running the government lack the political will to address those issues. - John Williams, Shadow StatisticsMany of us who have been researching, investing and trading the precious metals bull market for the past 11 years are of the consensus view - for what any consensus view is worth - that the precious metals are getting ready to start on the next leg of the bull market. There are several factors which underlie this mindset, not the least of which is the acceleration in non-U.S./Western Central Bank accumulation of physical gold.
As an example, through the end of May, China had imported 315 tonnes of gold via Hong Kong. This is a staggering amount of gold considering that global gold mining production is around 2600 tonnes annually. It is suspected by the those who closely study the data that most of that gold is being accumulated by China's Central Bank. Here are two graphs which show the trend in Central Bank gold accumulation (source: Casey Research/World Gold Council):
As you can see, global Central Bank gold holdings are well below the 1980 levels. Imagine the price effect if there is a rush by Central Banks to raise their gold holdings to at least 1980 levels in the face of ongoing paper currency devaluation.
And here is what the proverbial smart money is doing:
I guess some of us would find it ironic that the "do as I say, not as I do" mentality of Soros is that same mentality of Obama, who is one of Soros' political sock-puppets. Somehow I doubt Obama is smart enough to own any gold, other than the bling that adorns his "let them eat cake" wife.
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I see it as a 14 year bull market... with a nice test of the lows in 2000
ReplyDeleteMoody’s Warns Of Mass California Municipal Bankruptcies
ReplyDeleteThe klaxon horn went off Friday evening for California municipal bondholders when Moody’s credit rating service issued a report stating that the plummeting financial condition of many California counties, cities, school districts and other government agencies will soon result in large numbers of municipal bankruptcy filings. Concerned about their own potential liability for providing high ratings that encouraged conservative elderly Americans to invest in risky bonds; Moody’s announced they will undertake a wide-ranging review of municipal finances because of the growing insolvencies.
The Moody’s report comes just two days after we reported that “CALIFORNIA SALES TAX REVENUE NOSE-DIVES BY 33.5%.” Stock brokers have often recommended California municipal bonds as very safe investments, due to historically low default rates and relatively stable finances. But Moody’s said that outlook is changing after the Chapter 9 Bankruptcy filings of Stockton, San Bernardino and Mammoth Lakes.
Moody’s is especially concerned with the growing attitude among many cash-strapped cities that filing bankruptcy to avoid paying bondholders, is politically more advantageous than cutting spending. As a result, Moody’s will re-assess the financial condition of all California cities, which issues about 20 percent of the municipal bond volume nationwide, “to reflect the new fiscal realities and the governmental practices.”
http://www.testosteronepit.com/home/2012/8/17/moodys-warns-of-mass-california-municipal-bankruptcies.html
Facebook and the Arrest of B. J. Raub, Who is Delusional
ReplyDeletehttp://youtu.be/zn_mSsBLK1c
Bill Murphy - GATA - no mention of it again.
ReplyDeleteI know no one will take Murphy to task. His buddy said we could see something of a short covering in the COT last week. There was none of it - in fact the overall short position has now increased by 100% since the lowest point sometime in June I think it was - in silver.
So how is it that the Gold Bugs alternative media doesn't get held responsible as the FT articles against gold do?? or any other main media articles??
I think I know what it is! Nobody has any idea and we are hoping for the help of the invisible hand. The hand which we treat unkindly!!!
I am better served by more level headed people to which I count Bob Moriaty - see his article on Murphy - http://www.321gold.com/editorials/moriarty/moriarty071312.html
Had to go and read it today again to remind myself to not trust what Murphy writes anymore - it would serve GATA better to replace its founder and get someone of more stature to lead it. And it doesn't serve Chris Powell anything to have Murphy as Chairman, Chris at least refers to details.
At least there are still some who are level headed and still believe in a Gold Bull
CB always do bad work. They are wasting and wasting. They sell gold when it is "cheap", they buy many kinds of "papers" when it is expensive, before it is worthless. Uff, they have a lot of rubbish in possession.
ReplyDeleteThey are contrarian indicator.
Why should anyone make decision to buy gold as CB do, hmm, i dont know..
Disagree. Western CB's have been selling gold in an attempt to support overbloated Western fiat currencies. BOE/Fed nearly out of gold to swap or lease. ECB member banks still have some gold, they have not been selling what they have left for over 2 years now (see history of the Washington Agreement please).
DeleteEastern CB's have been buying what the Western counterparts have been selling/leasing. This is why the price has gone up steadily for 11 years.
Heard the rumour China is buying 6,000 tonnes of gold? It may not be
ReplyDeleteas crazy as it sounds
http://www.mining.com/heard-the-rumour-china-is-buying-6000-tonnes-of-gold-it-may-not-be-as-crazy-as-it-sounds-11560/?
Canary in the Coal Mine for Silver Manipulation? PBOC Advisor Recommends China Add Silver to Official Reserves
ReplyDeleteA prominent PBOC Advisor has stated that US Treasuries are not safe in the medium to long term, and has recommended China increase it’s gold reserves as well as add silver to it’s official reserves.
If confirmed, this is a potential game changer for silver that is so monumental it could literally blast silver from the upper $20′s through it’s all-time nominal high near $50 and closer to 3 figure range OVERNIGHT.
Where China to reduce it’s US Treasury holdings by $200 billion and plow the proceeds into physical gold and silver bullion as Xia recommends, you can kiss the cartel’s silver manipulation goodbye!
http://www.silverdoctors.com/canary-in-the-coal-mine-for-silver-manipulation-pboc-adviser-recommends-china-add-silver-to-official-reserves/
Black Report: No Criminal Prosecution of Wall St. and Who is the European, Romney or Obama?
ReplyDeleteTheRealNews
http://youtu.be/Q8j450ilLnk