Monday, April 29, 2013

Strike Back At The "Beast" - The Truth Strikes Back

Fiat Currency and Government Debt = 666


  1. These may 1st days are just a way to make people like mike Maloney rich. It is not to save the ordinary people or save those indebted by the system.



    I'd be interested in your opinion of this, Dave.

    1. Not a very well thought analysis. Look man, I would only recommend mining stocks if you think gold is going to at least $3000/oz. I think it's going a lot higher and right now gold in the ground is priced as cheaply as I've seen it in 12 years of doing this sector.

  4. Michael JacksonMonday, 29 April, 2013

    From a comment on youtube:

    "All commodities took a nosedive. Even food. Look at the record droughts. Eh? Something is up."

    I agree. Here in nevada, it's looking like our 3rd year of drought and I expect it to be bad this summer. We have had no snow (maybe a lite layer once, if lucky) doing winter for 3 years and we are having high temps for this time of year last few days (82-85F). We go down to 66 tomorrow then 68 then back into the 80's. Water will become a very precious commodity to have as well as food before the prices triple.

  5. It's not only your partner who thinks that a "squeeze or force majeure is coming. Jim Sinclair KNW

    "When you add to that the fact that you have now had significant hedging by a major gold producer, and the fact that historically this company has lost their shirt and almost gone broke engaging in hedging in the past, I would say that you are going to see them close their hedges a lot faster as the market moves higher than they would have otherwise. So that may very well be your short squeeze.”

  6. NEIL MACDONALD ~ Monarchs of Money (video)

  7. CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”

    What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real gold. That’s going to show you, people don’t want certificates, they don’t want anything else. They want the real product.

    - Terrence Duffy, President and Executive Chairman of CME Group Inc,. on Bloomberg TV yesterday (April 29, 2013)

  8. World Changing Events

    Wall Street has always looked down on individuals as ‘dumb money’ lacking sophistication. Trading techniques were even devised to follow the actions of individuals as contrarian signs in the markets. Those who understand the historic changes in our markets, money and geopolitics are relatively few in number. They are not the institutions. In this era, we consider the dumb money to be the institutions managing endowments and the huge pools of mutual and retirement funds. Their inability to comprehend the changes in what ‘smart money’ would do is a combination of institutional sclerosis and the tyranny of the consultants.

    The individuals whose funds are in these pools trust these institutional managers to make smart decisions. The institutional pools are too big relative to the size of the gold and silver markets to take meaningful positions. Allocations are driven by the consultants who generally avoid this asset class.

    It is frustrating to think that many investors are not taking action to protect themselves, but the truth is that most of them have delegated the decisions to others and are unaware of the issues and the perils to which their savings are exposed. Most account holders are oblivious and will remain so as long as the stock and bond markets are artificially elevated. They are also trapped in programs that do not allow for any allocations to gold and silver.

  9. Dave,
    Do you know if what happened to the people accounts in Cypress banks can happen here in the states in a credit union also?

  10. His technical take on the dollar is it is in imminent danger of outright collapse.
    I recall John Williams this past Feb said USD to hyperinflate by this May.
    Read his (John) 5:59 PM Apr30 comments/reply about the monkeys.

  11. Columbia Economist Dr. Jeffrey Sachs speaks candidly on monetary reform [Full version speech]

    Published on Apr 29, 2013
    A wonderful speech about corruption in the United States: from Washington DC and Wall Street, including the entire financial/banking system.

  12. High-Speed Traders Exploit Loophole

    High-speed traders are using a hidden facet of the Chicago Mercantile Exchange's CME +0.03% computer system to trade on the direction of the futures market before other investors get the same information.

    Using powerful computers, high-speed traders are trying to profit from their ability to detect when their own orders for certain commodities are executed a fraction of a second before the rest of the market sees that data, traders say.

    The advantage often is just one to 10 milliseconds, according to people familiar with the matter and trading records reviewed by The Wall Street Journal. But that is plenty of time for computer-driven traders, who say they can structure their orders so that the confirmations tip which direction prices for crude oil, corn and other commodities are moving. A millisecond is one-thousandth of a second.

    The ability to exploit such small time gaps raises questions about transparency and fairness amid the computer-driven, rapid-fire trading that increasingly grips Wall Street and confounds regulators.

    The Chicago Mercantile Exchange, a unit of CME Group Inc., is the largest U.S. futures exchange, handling 12.5 million contracts a day on average in the first quarter, according to Sandler + O'Neill Partners L.P. High-frequency trading generated about 61% of all futures-market volume, up from 47% in 2008, according to Tabb Group.

    Fast-moving traders can get a head start in looking at key information because they connect directly to the exchange's computers, giving them the data just before it reaches the so-called public tape accessible to everyone else. The exchange connections contain a host of data, of which the advance notice of trade confirmations is only a piece.

    Sophisticated traders have been aware of CME's order-latency issue for years and have incorporated the information into their trading strategies, according to an official with Jump Trading LLC, a big Chicago high-frequency company.

    Traders able to see market swings milliseconds before others gives them "an informational advantage," says Pete Kyle, a finance professor at the University of Maryland who is a former member of the Commodity Futures Trading Commission's Technology Advisory Committee.

    Mr. Kyle likened the activity to "a tax on other traders" because "you get all the gains from being the first guy" to trade.

    While many speed advantages are well-known to market insiders, only a relatively small group of sophisticated firms appears to be aware of the CME's trade-reporting delays.

    Front running is now a "legitimate" strategy. Good luck.

  13. Wall Street’s Bunco Artists

    At this point, no one even knows whether the hacker or hackers who momentarily commandeered AP’s Twitter feed did so in order to reap a windfall from the stock market. We’ll probably never know, since there are a thousand ways the perpetrator(s) could have cashed out. Suffice it to say, in mere seconds tens of billions of dollars changed hands in reaction to an utter falsehood. Is Wall Street troubled by this? Evidently not. Instead of addressing the fact that securities markets are now ruled by speed-of-light edge-seekers, and therefore prone to catastrophic seizures and fleeting episodes of dementia, the traders have instead instructed quants, simply, to do better the next time. Who cares any longer whether the news is good, bad or a hoax, they are saying. As long as the trade desk can exploit it profitably by getting in and out first, what’s the problem?

    And therein lies the problem. When the only edge left in the game is reckoned in nanoseconds rather than in knowledge, it is clear that the game cannot go on for much longer.

  14. How Wall Street Defanged Dodd-Frank

    ‘My Guys Get Killed When Markets Are Opaque’

    Perhaps no part of Dodd-Frank matters more than the CFTC’s battle to implement derivatives reform. Certainly the big banks wouldn’t argue that point: no product peddled by Wall Street has proved as lucrative in recent years, especially for the country’s most elite firms. Just five banks—Goldman Sachs, JPMorgan Chase, Citigroup, Morgan Stanley and Bank of America—account for more than a 95 percent share of a derivatives market that has been generating an estimated $40 billion to $50 billion in annual revenues. Because derivatives have been traded on dark (i.e., unregulated) markets, this “oligarchy” of five, says Darrell Duffie, a finance professor at Stanford’s Graduate School of Business and the author of How Big Banks Fail and What to Do About It, has been able to charge exorbitant rates to the wide range of businesses and government entities that buy them—profit margins that are sure to plummet if Dodd-Frank is fully implemented, Duffie says. That alone would justify the huge sums spent on lobbying to gut Dodd-Frank, a reflection of the banks’ unflinching resolve to protect the billions of dollars in derivatives profits they book every year. “If you look at the energy and ferocity and the dollars the financial sector put on the table, it was overwhelmingly directed at derivatives,” says Michael Barr, the former Treasury official.,2

  15. And For Its Next Trick, JPMorgan Takes Over The SEC

    JPM wasn't satisfied with demonstrating its implicit control over the US bond issuing authority by promoting Matt Zames to the post of COO, the same Matt Zames who courtesy of his Chairmanship of the TBAC, also effectively runs the US Treasury where he "advises" the brand new Treasury Secretary who has no idea what he is doing. Oh no. Just to cover all its bases, Jamie Dimon's firm decided to also take over the SEC as well.

    From a Notice of Withdrawal of appearance of one Andrew J. Ceresney filed in the case of the People of New York versus JPMorgan, in which find that Mr. Ceresney, formerly partner at Debevoise, the same firm that current SEC chief Mary Jo White came from, is no longer with the firm.

    The appearance of impropriety is a phrase referring to a situation whose ethics are deemed questionable.

  16. New ‘Game of Thrones’ battlefield is America
    Commentary: Greed of 7 Shadow Kingdoms is killing souls

    3. Federal Reserve Bank’s Shadow Kingdom

    Fed Chairman Ben Bernanke is perhaps the biggest lobbyist among all the new “Lobbyists for Capitalism,” ruling his Shadow Kingdom and its enormous power over printing fiat trillions, competing with both Congress and the White House for money, power, regulations, laws.

    Huffington Post’s Ryan Grim wrote a great piece on the Fed’s incestuous hiring policies, the expanding monetary bubble and looming problems ahead: “How the Federal Reserve Bought the Economics Profession:” Bernanke and the Fed “through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession … This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists,” and why they’re almost certain to miss the next one.

  17. Kickbacks Die Hard

    The UK’s financial market regulator, the FCA (formerly FSA) has spent years trying to shift financial advisers away from the traditional model of being paid by commission to a new, fee-based approach.

    The rationale for doing this is clear. If you’re a financial adviser being guaranteed several years of “trail” commission from a fund manager for recommending one of its funds, you are less likely to put your client into a fund that doesn’t pay a kickback.

    Even better (for advisers), so-called retrocessions were hard for the end-client to spot because the investor didn’t see the money passing hands. A third party called a fund platform would divert part of the hefty annual fund fee paid by the investor back to the adviser as the rebate.

    The platforms also kept part of funds’ annual management charges for themselves, something which meant several leading platforms didn’t offer cheap index trackers at all: no rebates, no access.

    Now the FCA has moved to ban platforms from accepting rebates, something that should level the playing field between the different kinds of funds available on platforms (if you’re a retail investor, you don’t have to use a platform, but if you use a financial advisor of any type you’ll probably end up on one).

    So the tide appears to be turning against Europe’s rebate-driven fund distribution model.

    Interestingly, in Germany, where regulators haven’t been dictating how the funds market should operate, things seem to be heading in the same direction as in the UK.

    The "Verbund Deutscher Honorarberater", an online resource for Germany's fee-based financial advisers, has recently started publishing the level of kickbacks paid by the managers of nearly 12,000 mutual funds on sale to investors in that country.

    Some funds offered by industry giants like BlackRock, Fidelity and Schroders pay rebates of over 1.5 percent a year to the intermediaries selling them to clients.

    Think index funds and ETFs are commission-free? Think again. Most index funds offered for sale in Germany don’t pay kickbacks to advisors, but some managed by Pictet, BNY Mellon, HSBC, UBS, Credit Suisse and Deutsche Bank do.

    I wonder if this is part of the reason brokers don't put clients into gold and gold trailing fee structure?....