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.


  1. Time to invade Dubai!

  2. Ya i actually meant to allude to that possibilty but i was distracted by the home equity loan email

  3. What options to the banks have, other than brake out the ol ninja loans.
    No income no jobs loans since most people have neither.

  4. 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.

  5. 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.

  6. 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."

  7. 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.

  8. 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!!!

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

    It is amazing sitting on the outside and looking in.

  9. 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.