We have been bearish on gold prices since January 2013, when it was trading above $1,650 an ounce. Since then, the price of gold has declined by almost 30%. There are three main reasons for this underperformance over the last two years:
1. Gold as an investment hedge has become less attractive to Europeans as the chance of a break-up of the European Monetary Union declined after Spain, Portugal and Greece were bailed out by the EMU’s richer members, such as Germany.
2. Gold has become less attractive to Americans as the U.S. dollar strengthened and recently hit a four-year high.
3. India, which accounts for one-quarter of the world’s gold consumption, slapped a 10% import duty on gold during August 2013. Indian gold demand dropped by close to 40% year-over-year in the fourth-quarter of 2013 and did not recover until this summer. Continue reading
Last year, I was roundly criticized when I said the Cyprus scenario is coming here. I was told there would be a revolution if this happened and the government would be to afraid to try such a thing. I marvel at people who hold to such naive beliefs. The American people have been through several beta tests related to our private wealth being confiscated and no resistance was offered (e.g. MF Global).
Listening to the sheep that believe Wolf Blitzer who tells us that the economy is in recovery, is like listening to a country song played backwards. You know the all-to-familiar message, the wife does not leave, the truck still runs and the guy stops drinking. Maybe it is all the fluoride in the water that is causing such widespread ignorance and apathy.
First of all, our government is not the main enemy. This is not the government we are dealing with. We are battling organized crime in the form of corporations like Goldman Sachs who have hijacked our government and now they have captured the G20. They are lining up for the last great garage sale before they collapse the economy and roll out martial law. There are forces lining up to steal everything that you and I own. It has already begun but this country is so dumbed down, we do not see that it has already started. Continue reading
Gold and silver price manipulation, “we” have talked and written about it for years. I can still remember speaking two or three times a week with the late Harry Bingham back in 1997 and ’98 regarding this topic. No matter what “event” popped up which logically and in the past should/would have pushed the price of gold higher, we would see waterfall action instead. Then along came Bill Murphy and Chris Powell of GATA. They put forth all sorts of anecdotal evidence, work by Frank Veneroso, James Turk and others which made the “manipulation picture” clearer. Each piece along the way was added to the previous pieces and made it more clear “we were right”. (Zero Hedge)
Of course, along the way there have been slurs and smears of GATA’s work and those of us who put the pieces together shedding light on the fact that gold and silver prices were manipulated. I must say, it was quite a frustrating experience when often times there was obvious evidence to the 3rd grade mentalities out there yet supposedly “smart” people would just turn their noses up saying “that proves nothing”. Even the latest operation last Wednesday at 12:30 AM where one week’s worth of global gold production (40 tons) was sold in the tight window of and Indian holiday and Chinese/Japanese lunch break was “apologized away” as being “routine selling”. Yes, I will agree, it has “become routine” but in no way is it “right”. Selling that which does not exist is illegal, morally wrong and in this case aimed squarely at suppressing the price. This is either “price fixing”, or “collusion”, both supposedly illegal. Continue reading
“England may as well dam up the waters of the Nile with bulrushes as to fetter the step of Freedom, more proud and firm in this youthful land than where she treads the sequestered glens of Scotland, or couches herself among the magnificent mountains of Switzerland.” ~ Lydia Maria Child, The Rebels, or Boston before the Revolution
Pity the poor Swiss.
The Bankers and the power brokers are frightening them with dire consequences if they should exercise their freedom and politely request that their gold be returned to them, to be kept within their national borders.
Why should they resist? This is not done in the well developed, sophisticated nations. Why should anyone wish to hold their own wealth? Better to give it to someone else to hold, someone who is more intelligent and capable. Continue reading
How we could fall into another housing crisis before we’ve fully pulled out of the 2008 one.
When it comes to housing, sometimes it seems we never learn. Just when America appeared to be recovering from the last housing crisis the trigger, in many ways, for 2008’s grand financial meltdown and the beginning of a three-year recession another one may be looming on the horizon.
There are at several big red flags. Continue reading
“They will act in accord with the proverbs, ‘that a dog will return to his own vomit; and the sow that was washed will go back to her wallow in the mud.'” ~ 2 Peter 2:21-22
No. The Fed will not learn.
The Fed will keep repeating their policy errors because they are well paid not to learn. And the economic bobble heads will keep agreeing with them and rationalizing their failures because that is the judicious thing to do if you wish to succeed in a disgraced profession that traffics in expedient fantasies as long as everyone that matters agrees with them.
The Fed wishes for the ECB and the other central banks to do dumb things like they and some of their friends are doing so that they all do the same dumb things together. There is safety in numbers apparently. Hey, we all did dumb things out of good intentions. Who could have known? No one saw the bubble coming. No one could have known that what we were doing was making things worse.
It worked for Greenspan. And it’s working for the Banks. Continue reading