tag:blogger.com,1999:blog-7982981413278241287.post4834845418002656844..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: The Comex Fraud Is Growing Larger - 69 Times More Paper Than GoldDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-7982981413278241287.post-10072880876809284442013-11-17T09:06:41.412-07:002013-11-17T09:06:41.412-07:00Hi Dave,
Your write;
''When that happens,...Hi Dave,<br /><br />Your write;<br />''When that happens, the world price of gold will go "bid without" (meaning all buyers, no sellers) and the dollar will drop off a cliff.''<br /><br />I say; When that happens, the world price of gold will go "bid without" (meaning all buyers, no sellers) and the most Fiat currencies will drop off a cliffHugonoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-25685602262917354252013-11-16T15:15:57.901-07:002013-11-16T15:15:57.901-07:00I'm not sure the party will be over soon. Supp...I'm not sure the party will be over soon. Suppose the Fed automatically buys stocks to raise the Dow at a preset daily level increase. That wouldn't cost too much. If they would need a piece of software to perform a task like that, it wouldn't take me more than an afternoon to program the code. However the Fed probably already has such tools for the stock, the bond and the gold/silver market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-42350400497864340122013-11-16T13:46:57.428-07:002013-11-16T13:46:57.428-07:00Bloomberg Cans Reporter Who Talked About Editors K...Bloomberg Cans Reporter Who Talked About Editors Killing China Story<br /><br />Bloomberg News is clearing house in the wake of a series of embarrassing leaks that revealed the would-be news agency killed stories to win the favor of the Chinese government.<br /><br />The Post is reporting that journalist Michael Forsythe has been placed on an "unpaid leave of absence" after it was revealed that he was one of the reporters who spoke to the New York Times after the Bloomberg News editor-in-chief killed a story he had been working on for almost a year. Forsythe was escorted out of the Hong Kong office on Thursday.<br /><br />The story would have run during the same month that the chief executive of Bloomberg (the non-news side of things) is visiting China to strengthen business ties between the media-sensitive country and the financial services company. And while Bloomberg LP might be looking to broaden its business, Bloomberg News is reportedly about to significantly downsize.<br /><br />According to The Post, between 50 to 100 staffers will soon be laid off from the news company, including several investigative reporters. Apparently, they were bad for business.<br /><br />http://gawker.com/bloomberg-cans-reporter-who-talked-about-editors-killin-1465857648?<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-32456425746417939852013-11-16T13:46:11.107-07:002013-11-16T13:46:11.107-07:00Hi Dave, you mentioned the physical flows heading ...Hi Dave, you mentioned the physical flows heading east while the west's paper gold market tanks. I think it is key to understand that the remarkable drawdown of physical gold from GLD is indicative of a bull market in physical while paper gold (the west's obsession) is about as bearish as a market can get. I think this ends when a LARGE delivery request (redemption) is unable to be fulfilled. At that point this paper gold market completely loses credibility.Anonymoushttps://www.blogger.com/profile/01370226402752071107noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-53858146823987617072013-11-16T12:39:08.780-07:002013-11-16T12:39:08.780-07:00Well done Dave keep these gems coming. Clever peop...Well done Dave keep these gems coming. Clever people don't do these things by accident. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-44886226269612535012013-11-16T07:36:29.726-07:002013-11-16T07:36:29.726-07:00West To East Gold Distribution Update
Just the off...West To East Gold Distribution Update<br />Just the official route has brought 826 tons of gold to China year to date, annualized 1100 tons. If we add 400 tons Chinese mining supply the total is 1500 tons that will meet demand. <br />Whilst the World Gold Council estimates Chinese consumer demand will be over 1000 tons, my estimate is it will be over 2200 tons. In my humble opinion just the official route raises a few eyebrows to the WGC demand numbers. If we then take into account gold is also imported by China through other ports than Hong Kong, more eyebrows are raised. <br />In a future post I will describe in detail how I calculated my estimate.<br /><br />http://koosjansen.blogspot.nl/2013/11/west-to-east-gold-distribution-update.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-49041224203891411262013-11-16T05:44:35.642-07:002013-11-16T05:44:35.642-07:00enjoy your blog dave. good stuffenjoy your blog dave. good stuffR. Bart Cobbhttps://www.blogger.com/profile/18194114771753073402noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-67383853446118348292013-11-16T05:43:36.768-07:002013-11-16T05:43:36.768-07:00LOL! Yes, and Bernanke said he didn't see a pr...LOL! Yes, and Bernanke said he didn't see a problem with subprime loans before they nearly took down the entire global economy.<br /><br />The point is that these clueless nitwits sitting behind their computers and models can't see the forest for the trees. You're dealing with a system built by humans, operating on a great deal of blind faith. It's when that faith is tested and proven egregiously wrong that all hell breaks loose. A point which you seem to miss entirely.Aaron Laymanhttp://aaronlayman.com/noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-85782183879707573192013-11-16T04:31:57.378-07:002013-11-16T04:31:57.378-07:00Absolutely, Gary Savage's track record over th...Absolutely, Gary Savage's track record over the last 5 years is terrible. The number of red lines he draws on his charts showing doom in the dollar are only matched by the number of people who believe in his red lines. SBTradeshttps://www.blogger.com/profile/05733253279331854250noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-64900135084418245352013-11-16T01:37:50.346-07:002013-11-16T01:37:50.346-07:00Speculators always have much more fiat than gold. ...Speculators always have much more fiat than gold. To them the amount of gold may be peanuts. They know there is not enough gold to save their fiat capital by buying gold. So their strategy is to protect their "assets" by "ignoring gold" until they have bought enough jewels.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-51377802485118768582013-11-15T23:09:29.567-07:002013-11-15T23:09:29.567-07:00"Hundreds of thousands of retired union worke..."Hundreds of thousands of retired union workers are facing pension cuts that could slash their monthly payments in half — or even more.<br /><br />The proposed cuts are part of a desperate effort to head off insolvency at multiemployer pension plans, pensions that typically provide benefits for workers at several companies.<br /><br />It's an unconventional move: Pension law has long maintained that cutting the benefits of those already retired is off-limits. Current law allows troubled multiemployer plans to reduce the benefits that employees earn going forward, cut early retirement and disability benefits and hike employer contributions instead.<br /><br />But things have gotten so dire that a coalition of employers and labor unions is asking Congress to change the law."<br /><br />http://money.cnn.com/2013/11/15/retirement/pension-cuts/index.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-25409184570062760622013-11-15T23:06:13.364-07:002013-11-15T23:06:13.364-07:00"Wall Street traders will have to wait until ..."Wall Street traders will have to wait until next week to don their commemorative "Dow 16,000" baseball hats, but both the Dow and the S&P did end the day at record highs.<br /><br />The Dow Jones industrial average, the S&P 500 and the Nasdaq all posted gains of more than 1% for the week.<br /><br />The Dow is closing in on 16,000, while the S&P 500 ended a few points shy of 1,800, which would be the first time for both. The tech-heavy Nasdaq is nearing 4,000, a level not seen since September 2000, just after the collapse of the dot-com bubble.<br /><br />Some believe stocks can continue moving higher in the short run as investors who have sat out the rally so far rush to get in before the party's over."<br /><br />http://money.cnn.com/2013/11/15/investing/stocks-markets/index.html?iid=s_mpm<br /><br />Well, Dave, you're right - looks like the party will be over soon. The Fed can push down Gold but we have all learn from 2008 crash that they cannot control a runaway stock market train. Remember "back to the future 3" with special wood was put in the furance to get the train up to 88 MPH? It all explodes as it went over the cliff. it's just a matter of time.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-22075448417413327072013-11-15T20:34:17.228-07:002013-11-15T20:34:17.228-07:00Maybe after exporting our jobs, maybe now we are e...Maybe after exporting our jobs, maybe now we are exporting our wealth to asian countries. They have our production/industry model - we train them in it. When jobs are outsourced, a team from the company goes there with them. Now its wealth. Eventually, this country will have no industry, unmanageable poverty, and worthless US paper.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-21857667495304556402013-11-15T20:29:19.356-07:002013-11-15T20:29:19.356-07:00A new report from the McKinsey Global Institute ex...A new report from the McKinsey Global Institute examines the distributional effects of these ultra-low rates. It finds that there have been significant effects on different sectors in the economy in terms of income interest and expense. From 2007 to 2012, governments in the eurozone, the United Kingdom, and the United States collectively benefited by $1.6 trillion both through reduced debt-service costs and increased profits remitted from central banks (exhibit). Nonfinancial corporations—large borrowers such as governments—benefited by $710 billion as the interest rates on debt fell. Although ultra-low interest rates boosted corporate profits in the United Kingdom and the United States by 5 percent in 2012, this has not translated into higher investment, possibly as a result of uncertainty about the strength of the economic recovery, as well as tighter lending standards. Meanwhile, households in these countries together lost $630 billion in net interest income, although the impact varies across groups. Younger households that are net borrowers have benefited, while older households with significant interest-bearing assets have lost income.<br /><br />http://www.mckinsey.com/insights/economic_studies/qe_and_ultra_low_interest_rates_distributional_effects_and_risks?cid=other-eml-alt-mgi-mck-oth-1311Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-51955449381005164282013-11-15T20:24:52.957-07:002013-11-15T20:24:52.957-07:00The U.S. trade deficit widened in September as imp...The U.S. trade deficit widened in September as imports rose to their highest level in almost a year and exports fell for a third consecutive month, suggesting the third-quarter growth estimate will probably be lowered.<br /><br />Other data on Thursday painted a less upbeat picture of the labor market than had been suggested by last week's sturdy October payrolls report. First-time applications for jobless benefits fell last week, but the decline in claims for the week ended November 2 was smaller than previously reported.<br /><br />"The reports reveal a slightly weaker path than we expected for exports and claims levels, which has modestly downgraded the outlook for the economy," said Mike Englund, chief economist at Action Economics in Boulder, Colorado.<br /><br />http://www.reuters.com/article/2013/11/14/us-usa-economy-idUSBRE9AD0RZ20131114Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-74510843780772073292013-11-15T20:20:59.713-07:002013-11-15T20:20:59.713-07:00Wal-Mart Stores Inc on Thursday reported its third...Wal-Mart Stores Inc on Thursday reported its third straight quarterly decline in U.S. comparable sales, hurt by a drop in shopper visits, and the world's largest retailer gave a disappointing profit forecast for the holiday season... <br /><br />http://www.reuters.com/article/2013/11/14/us-walmart-results-idUSBRE9AD0MF20131114Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-30481519815126429612013-11-15T20:17:03.951-07:002013-11-15T20:17:03.951-07:00A gold vault that can store 2,000 metric tons, dou...A gold vault that can store 2,000 metric tons, double China’s projected consumption this year, opened in Shanghai this month as owner Malca-Amit Global Ltd. seeks to benefit from rising demand in Asia’s largest economy. <br /><br />The facility is the biggest for the Hong Kong-based company, and it can also store diamonds, jewelry and art, Joshua Rotbart, precious metals general manager, said in an interview. The site could hold bullion worth about $82.5 billion at today’s price, Bloomberg calculations show. China’s total demand may reach 1,000 tons in 2013, the World Gold Council forecasts.<br /><br />Consumption in China may increase 29 percent to a record this year, overtaking India as biggest user as lower prices and higher incomes spur demand, according to the WGC. The investment in Shanghai’s new free-trade zone reflects a shift in world demand away from the U.S. and Europe toward Asia. Demand for gold jewelry, bars and coins in Greater China, India, Indonesia and Vietnam is now about 60 percent of the global total, up from 35 percent in 2004, according to HSBC Holdings Plc.<br /><br />http://www.bloomberg.com/news/2013-11-10/gold-vault-for-2-000-tons-opens-in-shanghai-as-bullion-goes-east.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-33442334436254557262013-11-15T20:10:00.371-07:002013-11-15T20:10:00.371-07:00As U.S. taxpayers expatriate at record rates, some... As U.S. taxpayers expatriate at record rates, some experts say a complex IRS tax code could be to blame.<br /><br />So far this year, 2,369 people have either given up their U.S. passports or surrendered their green cards after long-term residency, according to Andrew Mitchel, a tax lawyer in Centerbrook, Conn., who watches the data closely<br /><br /> Experts say an overly complex tax system could be driving some Americans to throw in the citizenship towel. Some expatriates are also subject to an exit tax.<br /><br />Mitchel attributed part of the exodus to "the IRS cracking down on people with overseas accounts." <br /><br />http://www.cnbc.com/id/101202754Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-30358941447798522002013-11-15T19:51:56.587-07:002013-11-15T19:51:56.587-07:00genetic testing
They now want to test people'...genetic testing<br /><br />They now want to test people's DNA to see what drugs would be best for their bodies health. This came up in the late 1990's when Clinton was Prez but big corporations wanted to use it as a screening test as they only wanted long-term health employees that wouldn't bog down their medical insurance they were offering, i.e. soviet-style deciding what future you would have - a doctor or a peasant for life.Michael Jacksonnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-22339938702967064602013-11-15T19:31:28.664-07:002013-11-15T19:31:28.664-07:00They have infinite paper available to them...they ...They have infinite paper available to them...they move and create the line...for now.<br /><br />Presenting self-securitization.<br /><br />What is "self-securitization"? Go ahead and Google it: there doesn't exist any technical definition of this heretofore unheard of phrase.<br /><br />Rather the term, conceived by the FSB as a means of making the total size of the $71 trillion shadow banking sector somewhat more palatable, is defined as follows:<br /><br /> Self-securitisation (retained securitisation) is defined as those securitisation transactions done solely for the purpose of using the securities created as collateral with the central bank in order to obtain funding, with no intent to sell them to third-party investors. All of the securities issued by the Structured Finance Vehicle (SFV) for all tranches are owned by the originating bank and remain on its balance sheet.<br /><br />At this point alarm bells should be going off. And if they aren't, here is some more color.<br /><br /> The numbers for OFIs presented in sections 2 to 4 of this report include all financial assets of Structured Finance Vehicles (SFVs), regardless of who holds the securitised products. However, in a number of jurisdictions, some of these products are returned back onto the balance sheet of the bank that originally provided the asset to be securitised. This so called self-securitisation, or retained securitisation, is defined as those securitisation transactions done solely for the purpose of using the securities created as collateral with the central bank in order to obtain funding, with no intent to sell them to third-party investors. All of the securities issued by the SFV for all tranches are owned by the originating bank and remain on the bank’s balance sheet, so that third-party investors do not own any of the securities issued by the SFV. These assets should not be included in the shadow banking figure, as prudential consolidation rules consider them as banks’ own assets and as such subject to consolidated supervision and capital requirements.<br /><br /> <br /><br /> ... some of the assets that are currently ‘self-securitised’ by banks may at some point be sold to third parties when financial conditions improve.<br /><br />Wait a minute: a company is "securitizing" assets.... which it then keeps, but only after it has "obtained funding with a central bank"? What?<br /><br />Answer: $1,200,000,000,000.<br /><br />That is the amount of unlevered notional that shadow (and regular) banks engage in circular check-kiting games with central banks for, and in the process obtaing "funding." As one trading desk explained it:<br /><br /> you take yr worst assets... package up in an spv (which removes em from yr gaap balance sheet) then flip to central bank for cash at modest haircut and boom revenues...<br /><br />And presto: magic balance sheet clean up and even more magical "revenues."<br /><br />But wait, there's more (spoiler preview: take the above quote and put in on constant rewind)<br /><br />Where this mindblowing, circular scheme in which riskless central banks serve as secret sources of incremental bank funding, i.e., free money, gets completely insane, is the realization that these self-securitized assets can also participate in rehypothecation chains. Recall from our exposition yesterday on the permitted leverage resulting from collateral reuse in a repo chain which is fundamentally what shadow banking is all about: unregulated, stratospheric leverage.<br /><br />http://www.zerohedge.com/news/2013-11-15/unspoken-toxic-secret-heart-shadow-banking-self-securitization-central-banks<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-68189182774835379682013-11-15T17:42:45.720-07:002013-11-15T17:42:45.720-07:00Dave, I don't think the 69 ratio is relevant. ...Dave, I don't think the 69 ratio is relevant. The total open interest on the Shanghai Futures Exchange for gold as of Friday was 151526. Since the SHFE reports the open interest as the sum of both longs and shorts, that's 75.763 tonnes of gold. However, if you look at the gold stock at the SHFE, there is only 375kg of gold. The paper/stock ratio is 202...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-76351515776472152032013-11-15T14:40:14.929-07:002013-11-15T14:40:14.929-07:00I wonder, though, if the continued QE is causing a...I wonder, though, if the continued QE is causing a problem for banks in obtaining quality collateral. Why have there been gold price smashes (paper gold) while demand from Asia increases and physical gold stock drain from Comex and GLD and other ETF to vaults in Asia? It’s easy to blame “manipulation” but who would dump large quantities of gold at one time and expect to profit again and again? Of course, I wouldn't be surprised at shenanigans by bullion traders, but I think there is something more at work. Your thoughts?<br /><br />There seem to be massive stresses in the financial system due to a lack of quality collateral. Banks may be reaching for gold to use as collateral thus increasing gold leasing—putting pressure on the paper gold price. Then when the GOFO rates goes negative (into backwardation) physical demand asserts itself and gold rallies. <br /><br />As an analyst writes, “It was only in early 2008 that gold collateralized lending took on the emergency proportions that we saw in the gold “smashes”. Given the shrinking collateral environment coupled with the effective closing of unsecured interbank lending markets (beginning in August 2007), banks are navigating a liquidity system that is nowhere near certain. Add in the pressures of QE (or LTRO’s in Europe) on collateral chains, and gold’s appeal in lending markets is more obvious.”<br /><br />See charts showing rising GOFO rates preceding gold price smashes. <br /><br />http://www.alhambrapartners.com/2013/10/21/gold-and-collateral-appear-tied-to-now-faded-debt-ceiling-drama/<br />http://www.silverdoctors.com/paul-mylchreest-gold-collateral-could-the-post-lehman-reflation-be-reaching-its-limits/<br /><br />I seek anyone's thought on this. QE, global money printing and lowered interest rates may be depressing the gold price counter-intuitively in the SHORT-TERM while increasing the imbalances long-term. Own physical bullion and pray for price declines to add. <br /><br />Anonymoushttps://www.blogger.com/profile/17455003385851080881noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-51642571983370122472013-11-15T13:37:57.617-07:002013-11-15T13:37:57.617-07:00thanks for the much needed clarification on Gary S...thanks for the much needed clarification on Gary Savage (Toby Connor). his superficial day trader analysis has received much undeserved attention and is consistently and fundamentally in error. as you have stated, your analysis drills down into the nuts and bolts of fundamental economics. the gold community is filled with these irresponsible and lackluster writers. you are correct in suggesting that an analysis of their past performance is riddled with inconsistencies and downright faulty prognostications which pander to the confusion, fear and hysterical expectations of the many fools who subscribe to their dubious and even harmful services. thanks as always for your well reasoned, always reliable, and rock solid work. yardfarmerhttps://www.blogger.com/profile/04808517700285973637noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-86790016900053129152013-11-15T13:17:16.181-07:002013-11-15T13:17:16.181-07:00Dave: Don't get me wrong. I don't think ...Dave: Don't get me wrong. I don't think Obama was the one calling the shots in April. I think he was taking orders. More of a this is what we are going to do so if for some reason we get in trouble call off the dogs type discussion. I know without reservation that Obama is not calling the shots on anything that matters. QAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-88384544693657307452013-11-15T12:38:57.180-07:002013-11-15T12:38:57.180-07:00Yes, see my comment belowYes, see my comment belowDave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.com