Wednesday, June 26, 2019

BANKER RAIDS FAIL IN THEIR ATTEMPT TO CAUSE GOLD AND SILVER OPEN INTEREST TO FALL

by Harvey Organ, Harvey Organ Blog:

SPAIN IS NOW PARALYZED WITH STRIKES AND PROTESTERS/WORK IN PROGRESS

GOLD: $1272.00 down $2.75

Silver: $16.61  up 1 CENT(S)

Closing access prices:

Gold $1271.10

silver: $16.63

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $n/a DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $n/a

PREMIUM FIRST FIX:  $8.24 (premiums getting larger)

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SECOND SHANGHAI GOLD FIX: $n/a

NY GOLD PRICE AT THE EXACT SAME TIME: $/na

Premium of Shanghai 2nd fix/NY:$13.00 (PREMIUMS GETTING LARGER)  

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LONDON FIRST GOLD FIX:  5:30 am est  $not important

NY PRICING AT THE EXACT SAME TIME: $not important

LONDON SECOND GOLD FIX  10 AM: $1283.10

NY PRICING AT THE EXACT SAME TIME. 1283.10

For comex gold:

OCTOBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 1601 NOTICE(S) FOR  160,100OZ.

TOTAL NOTICES SO FAR: 2040 FOR 204,000 OZ  (6.345 TONNES)

For silver:

OCTOBER

 

 12 NOTICES FILED TODAY FOR

 

60,000  OZ/

Total number of notices filed so far this month: 316 for 1,580,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY ROSE BY  249 contracts from  182,960  UP TO 183,209  CORRESPONDING TO ANOTHER RAID THAT SILVER UNDERTOOK IN YESTERDAY’S TRADING (DOWN 8 CENTS ). THE CROOKS TRIED TO COVER AS MUCH OF THEIR SILVER SHORTS AS POSSIBLE BUT IT LOOKS LIKE THEY FAILED

RESULT: A SMALL SIZED RISE IN OI COMEX  DESPITE THE  8 CENT PRICE FALL AND CONSTANT TORMENT. IT SURE LOOKS LIKE OUR BANKERS FAILED AGAIN IN THEIR ATTEMPT TO COVER THEIR MASSIVE SILVER SHORTFALL

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.915 BILLION TO BE EXACT or 131{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 19 NOTICE(S) FOR 95,000OZ OF SILVER

In gold, the open interest FELL BY A  MUCH SMALLER THAN EXPECTED 152 CONTRACTS DESPITE ANOTHER WICKED FALLin price of gold ($8.25 ) .  The new OI for the gold complex rests at 530,731. WEHAVE NOW ENTERED GOLDEN WEEK (ONE WEEK OF CHINESE HOLIDAY)..SO EXPECT TORMENT FOR THE REST OF THE WEEK AS THE CROOKS DO NOT HAVE TO WORRY ABOUT PHYSICAL DELIVERIES FOR A WEEK. OUR BANKER FRIENDS WERE NOT SUCCESSFUL IN THE ATTEMPT TO COVER MORE OF THEIR GOLD SHORTS.

 

Result: A SMALL SIZED DECREASE IN OI WITH THEFALL IN PRICE IN GOLD ($3.75) 

we had: 1601 notice(s) filed upon for 160,100 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:   WOW

Tonight , A HUGE CHANGE  in gold inventory at the GLD AGAIN WITH THE CONTINUAL DRUBBING GOLD HAS TAKEN THESE PAST FEW WEEKS. THIS HUGE WITHDRAWAL WAS REPORTED LATE LAST NIGHT:  WITHDRAWAL OF  10.35 TONNES

Inventory rests tonight: 854.30 tonnes.

SLV

Today: a SMALL change in inventory:  A WITHDRAWAL OF 142,000 OZ TO PAY FOR FEES

INVENTORY RESTS AT 326.615 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver SURPRISINGLY ROSE BY 249 contracts from 182,960  DOWN TO 183,209 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) . IT  SEEMS THAT  OUR BANKERS WERE UNSUCCESSFUL IN COVERING THEIR SHORTS.  WITH GOLDEN WEEK IN CHINA, EXPECT THE BANKERS TO HAVE CONSTANT TORMENT THROUGH THIS COMING WEEK AS THEY TRY AND COVER AS MANY AS POSSIBLE OF THEIR SILVER/GOLD SHORTS.

RESULT:  A SMALL SIZED INCREASE IN SILVER OI  AT THE COMEX WITH THE FALL IN PRICE OF 8 CENTS IN FRIDAY’S TRADING. EXPECT CONSTANT TORMENT FOR THE REST OF THE WEEK. OUR BANKER FRIENDS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF OUR SILVER SHORTS

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

)Late MONDAY night/TUESDAY morning: Shanghai closed /Hang Sang CLOSED / The Nikkei closed UP 44.50 POINTS OR 0.22{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.81{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed/Oil DOWN to 50.30 dollars per barrel for WTI and 55.60 for Brent. Stocks in Europe OPENED GREEN .  ALL YUAN FIXINGS CLOSED

Read More @ HarveyOrganBlog.com

Keiser Report (Ep. 1131)

from Keiser Report:

Stacy interviews Erik Voorhees of ShapeShift.io about the latest crackdowns on Initial Coin Offerings in the cryptocurrency space. They also discuss whether or not bitcoin is a store of value or a payment system. Or both.

John Rubino – Catalonia Succession Vote Brutally Suppressed

by Kerry Lutz, Financial Survival Network:

John Rubino returns… First, again our thoughts and prayers go out to the victims and the loved ones involved in the Las Vegas Massacre. There are just no words to describe the horror. John and I discussed the Catalonian succession vote in Spain. Seems that the powers that be didn’t want to see it happen and attacked innocent people who were voting. There were hundreds of injuries for absolutely now reason. And the vote, largely symbolic, still went to independence. As John says, “It’s easy for a small area to setup a country these days.”

Click HERE to listen.

Read More @ FinancialSurvivalNetwork.com

Bitcoin is Not New and Improved Money

by Michael Pento, Market Oracle:

Cryptocurrencies are being billed as a new and improved form of money that has been offered to us courtesy of technological evolution. There is a big problem with this conclusion. That is, digital money is not money at all. And proving this truth serves to underscore why gold has been utilized as the best form of money for thousands of years.

In the 2013 film titled “Her,” lonely Theodore, played by Joaquin Phoenix, falls in love with Samantha, an operating system. Despite Samantha’s lack of physical presence, the two have a somewhat normal relationship that includes vacations, socializing with friends, fights and even jealousy. But just as the audience starts buying into this unconventional pairing the plug is pulled on Samantha, and she disappears into a cyberspace vortex; leaving poor and lonely Theodore heartbroken.

And, at the dawn of the twenty-first century, this is where we are as a society.  In a place where the digital and real world collide. Social Media has supplanted socializing, texts have replaced phone calls, and artificial intelligence may soon outstrip actual intelligence: robots may soon rule the world! 

In this fast-changing environment, it’s easy to believe that cyber currencies should inevitably replace fiat money; and even that “barbarous relic” gold. After all, the motivation to find as many escapes from debt-based central bank confetti is indeed alluring.

And herein lies the attraction of cryptocurrencies such as Bitcoin – it uses the revolutionary blockchain technology that is managed by the free market, not by government. It is decentralized, anonymous, and has been hugely profitable. In fact, this year we have seen digital currency prices go higher not by percentages but by multiples. This has caused Bitcoin to achieve the “most crowded trade” status, measured by sentiment in the monthly global Bank of America Merrill Lynch Fund Managers survey; as its price has surged by 330 percent this year alone.

But, JPMorgan’s CEO Jamie Dimon isn’t beguiled. He believes the online currency is just as fleeting as the Theodore’s Samantha and will soon leave investors equally as heartbroken. He contends that bitcoin “is a fraud.” “It’s just not a real thing, and eventually it will be closed.”  But it’s not just Jamie Dimon, who has a vested interest in protecting the banking system and the fiat currency that inhabits it, that is questioning Cryptos. Founder of the world’s largest hedge fund Ray Dalio believes Bitcoin is a bubble. Dalio contends that unlike gold, “it’s not an effective store-hold of wealth.”

And Oaktree Capital Management’s Howard Marx agrees stating “…they are not real – nobody has been able to make sense to me of these currencies.”  Marx explains that one of the biggest pitfalls of bitcoin and its fellow cryptos is they are mostly used to buy other “imaginary” money or used it to invest in companies that create other new currencies.

And now some government regulators appear to agree with these sentiments, making the speculation of Bitcoin’s demise closer to reality.

In fact, the Chinese government has just become the first to put the kibosh on crypto’s – and this should sound warning bells to all those enamored with cyber “money.”   On September 4th, China’s central bank banned Initial Coin Offerings (ICOs) maintaining it was an illegal public finance mechanism.  ICOs are a hybrid between an initial public offering, crowd-funding and venture capital that permits start-ups to raise funds using virtual money. Regulating what a crypto-currency could be used for was the first crack in the armor for Bitcoin in China.
 
China has long been a repository for bitcoin, which came in the aftermath of the 2008 financial crisis as an alternative to fiat currencies. Much of the world’s bitcoin is mined in China. And, according to the WSJ, more than 80{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of global bitcoin activity took place in yuan at the start of this year.

But recently, China’s central bank has devised new rules to end commercial trading in virtual currencies under the guise of trying to reign in the chaotic marketplace. And this is sure to offer a template for other nations’ regulators.
  
Beijing’s clampdown on bitcoin is part of a larger effort to root out risks to the country’s financial system. This is prompting virtual-currency activity in China to move off exchanges, where individuals can trade with each other privately. However, it’s difficult to imagine that when relegated to the shadows these virtual currencies will enjoy the same popularity.

Indeed, this is where cryptocurrencies fail the definition of real money: They are not at all rare or indestructible. Once a government decides to shut down cryptocurrency exchanges, the liquidity evaporates rather quickly. And once Bitcoin transactions become illicit, what retailer would risk fines or imprisonment just to transact in digital money? Since an online retailer needs to use a public application to accept cryptocurrencies, then it cannot simultaneously be kept secret from the prying eyes of government—unless you believe retails will move en masse to the dark web. This is different than gold, which can be exchanged for goods and services furtively offline—making it much more difficult for a government to trace and regulate. Cryptocurrencies are decentralized in nature but do rely on a functioning internet to consummate a transaction. Be it an act of nature or war. However the grid goes down, so goes your Bitcoin.

More importantly, new digital currencies are being created by the day. In fact, there are nearly one thousand already floating around. What is the true value of something that can be created by virtual fiat and in innumerable quantities? It takes about $1,300 worth of physical and human capital to pull an ounce of gold from the ground. While it may take a lot of time and energy to mine for new bitcoins, it takes next to nothing to create a totally new cryptocurrency.

Many analysts have attributed the sharp rise in bitcoin over the last year to Chinese investors, who began buying it up in lieu of the yuan amid worries that the Chinese currency would weaken and to escape capital controls. Since the government’s recent clampdown, the country’s share in Bitcoin has dropped dramatically along with its price (over 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in the past month). The bottom line is that the central planners in China aren’t going to let a bunch bits and bytes supplant their command and control of the economy.

Read More @ MarketOracle.com

CHINA IS ON GOLDEN WEEK HOLIDAY AND THUS THE CROOKS WILL RAID ALL WEEK

by Harvey Organ Blog, Harvey Organ Blog:

SURPRISINGLY NO GOLD OR SILVER LEFT THE GLD OR SLV: I WONDER WHY?/BILL HOLTER’S IMPORTANT PAPER..A MUST READ…

GOLD: $1274.25 down $8.25

Silver: $16.60  down 8 CENT(S)

Closing access prices:

Gold $1271.10

silver: $16.60

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $n/a DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $n/a

PREMIUM FIRST FIX:  $8.24 (premiums getting larger)

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SECOND SHANGHAI GOLD FIX: $n/a

NY GOLD PRICE AT THE EXACT SAME TIME: $/na

Premium of Shanghai 2nd fix/NY:$13.00 (PREMIUMS GETTING LARGER)  

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LONDON FIRST GOLD FIX:  5:30 am est  $not important

NY PRICING AT THE EXACT SAME TIME: $not important

LONDON SECOND GOLD FIX  10 AM: $1283.10

NY PRICING AT THE EXACT SAME TIME. 1283.10

For comex gold:

OCTOBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 28 NOTICE(S) FOR2800OZ.

TOTAL NOTICES SO FAR: 439 FOR 43900 OZ  (1.3654 TONNES)

For silver:

OCTOBER

 

 19 NOTICES FILED TODAY FOR

 

95,000  OZ/

Total number of notices filed so far this month: 304 for 1,520,000 oz

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end

Let us have a look at the data for today

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In silver, the total open interest FELL CONSIDERABLY BY  1464 contracts from  184,424DOWN TO 182,960  CORRESPONDING TO ANOTHER RAID THAT SILVER UNDERTOOK IN FRIDAY’S TRADING (DOWN 14 CENTS ). WITH GOLDEN WEEK IN CHINA STARTING FRIDAY SEPT 29, OUR CROOKS BECOME EMBOLDENED TO CONTINUE THEIR WHACKING KNOWING FULL WELL THAT THEY DO NOT HAVE TO WORRY ABOUT PHYSICAL DELIVERIES FOR AT LEAST A WEEK.

RESULT: A FAIR SIZED FALL IN OI COMEX  WITH THE14 CENT PRICE RISE. IT LOOKS LIKE WE HAD A SMALL AMOUNT OF BANKER SHORTS COVERING AND THUS THEY HAD MILD SUCCESS.  

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.152 BILLION TO BE EXACT or 131{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 19 NOTICE(S) FOR 95,000OZ OF SILVER

In gold, the open interest FELL BY A SMALLER THAN EXPECTED 1800 CONTRACTS WITH THE FALLin price of gold ($3.75 ) WITH YESTERDAY’S COMEX TRADING.  The new OI for the gold complex rests at 530,883. WEHAVE NOW ENTERED GOLDEN WEEK (ONE WEEK OF CHINESE HOLIDAY)..SO EXPECT TORMENT FOR THE REST OF THE WEEK AS THE CROOKS DO NOT HAVE TO WORRY ABOUT PHYSICAL DELIVERIES FOR A WEEK.

 

Result: A SMALL SIZED DECREASE IN OI WITH THEFALL IN PRICE IN GOLD ($3.75) 

we had: 28 notice(s) filed upon for 2800 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:   WOW

Tonight , NO CHANGESin gold inventory at the GLD AGAIN DESPITE THE CONTINUAL DRUBBING GOLD HAS TAKEN THESE PAST FEW WEEKS

Inventory rests tonight: 864.65 tonnes.

SLV

Today: a no changes in inventory:

INVENTORY RESTS AT 326.757 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FELL BY1464 contracts from 184,424DOWN TO 182,960 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) . IT  SEEMS THAT A TINY FRACTION OF OUR BANKERS WERE SUCCESSFUL IN COVERING THEIR SHORTS.  WITH GOLDEN WEEK IN CHINA, EXPECT THE BANKERS TO HAVE CONSTANT TORMENT THROUGH THIS COMING WEEK AS THEY TRY AND COVER AS MANY AS POSSIBLE OF THEIR SILVER/GOLD SHORTS.

RESULT:  A GOOD SIZED DROP IN SILVER OI  AT THE COMEX WITH THE FALL IN PRICE OF 19 CENTS IN FRIDAY’S TRADING. EXPECT CONSTANT TORMENT FOR THE REST OF THE WEEK.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late SUNDAY night/MONDAY morning: Shanghai closed /Hang Sang CLOSED / The Nikkei closed UP 44.50 POINTS OR 0.22{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.81{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed/Oil DOWN to 50.30 dollars per barrel for WTI and 55.60 for Brent. Stocks in Europe OPENED GREEN .  ALL YUAN FIXINGS CLOSED

Read More @ HarveyOrganBlog.com

The Fed Stares Reality in the Face

by Jim Rickards, Daily Reckoning:

Janet Yellen maintains a persistent belief in the Phillips curve, which assumes an inverse relationship between unemployment and inflation.

As unemployment goes down, labor scarcity leads to wage increases above growth potential, which leads to inflation.

The only problem with the Phillips curve is that it has no empirical support. In the late 1970s and early 1980s, we had high unemployment and high inflation. Today, we have low unemployment and low inflation. Both results are the exact opposite of what the Phillips curve would predict.

In a recent speech, Fed governor Lael Brainard, an ally of Yellen, said the Phillips curve today is “flat.” That’s a polite way of saying there is no curve.

Yellen is also confused about what causes inflation other than the Phillips curve. She believes that monetary ease, acting with a lag, feeds inflation. Therefore, it is necessary to tighten policy before inflation appears to avoid getting behind the curve.

But money supply does not cause inflation. It may add fuel to a fire, but it’s not the spark. The Fed has created $3.5 trillion of new money since 2008 and there’s no inflation in sight.

What causes inflation is not money supply but psychology, expressed as velocity. Velocity is the speed at which money turns over through lending and spending. It depends on behavioral psychology, what Keynes called “animal spirits,” regardless of the amount of money around.

Assume GDP is $20 trillion and maximum real growth is 3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}. That means nominal GDP growth above $600 billion (3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of $20 trillion) will be inflationary. Now consider two cases. In the first case, money supply is $300 billion and velocity is 2. In the second case, money supply is $250 billion and velocity is 3.

The first case yields $600 billion in nominal growth ($300 billion times 2), which is noninflationary because it matches potential growth. In the second case, nominal growth is $750 billion ($250 billion times 3), which is inflationary because it exceeds potential real growth.

In other words, the example with the larger money supply has lower inflation. Sorry, Janet.

In recent remarks, both at the FOMC press conference on Sept. 20 and a speech last Monday, Yellen left markets with the impression that the Fed would raise rates in December based on the arguments noted above (low unemployment and monetary policy acting with a lag).

At the same time, she noted that inflation has been going down sharply and that the Fed really doesn’t understand why (a refreshing note of humility).

Yellen dismisses the weak inflation data as “transitory” and clings to her forward-looking Phillips curve fears as a reason to raise rates in December. Markets seem to agree.

Yet as with all false belief systems, reality intrudes sooner or later. In this case, reality intruded at exactly 8:30 a.m. EDT last Friday, Sept. 29.

That was when the August core PCE year-over-year (YoY) inflation figure was released.

Core PCE YoY is the one inflation metric the Fed focuses on. The Fed’s target for that measure is 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}. Here are the data so far this year:

  • January: 1.9{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • February: 1.9{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • March: 1.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • April: 1.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • May: 1.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • June: 1.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
  • July: 1.4{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.

You get the picture.

The real data have moved in the opposite direction from the Fed’s 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} target by a full 0.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in seven months. That’s a big move, and that’s a long period of time to cling to the “transitory” explanation.

I told Rickards’ Intelligence Triggers subscribers on Thursday that if core PCE came in at 1.4{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or lower Friday morning, it would drive a stake into the heart of Wall Street research departments and kill any chance of a December rate hike.

If it was 1.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, I said it wouldn’t move the needle much one way or the other. Yellen would take a “wait and see” approach. If it was 1.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or higher, I said that would have increased the odds of a December rate hike and given encouragement to Yellen and her “transitory” theory.

So what did August core PCE come in at Friday?

Read More @ DailyReckoning.com

Thoughtful Disagreement – Ted Butler

by Ted Butler, SilverSeek:

I caught a good interview by Charlie Rose on Bloomberg TV the other night of Ray Dalio, founder and head of Bridgewater Associates, the world’s largest hedge fund with some $150 billion in assets under management. Dalio has been making the rounds recently in promoting his new book, “Principles”, in which he lays out his beliefs for the investment business and the business of life. Now in book form, Dalio previously offered his work for free and which was downloaded more than three million times. For very good reason, when Dalio speaks, he is listened to even more than EF Hutton.

One of the best things about Dalio (and if you’re unfamiliar with him, please do a search on Google) is his rags-to-riches real life experience and his strong belief that we learn through our mistakes. In his case, his biggest failure and the cause of his near financial ruin was a mistaken bet on a stock market collapse in the summer of 1982.  Instead of the market tanking for all the reasons Dalio had (correctly) anticipated, it exploded with a vengeance, creating losses and forcing him to lay off his employees (with whom he held close personal relationships) and resort to borrowing $4000 from his father to survive. For a more detailed version of the affair, here’s a good link.

http://www.institutionalinvestor.com/article/3751630/asset-management-macro/the-education-of-ray-dalio.html#/.Wcupk7le7bh

Staring into his own personal abyss, Dalio vowed to learn from it and set about to do just that, succeeding far beyond what anyone could have ever imagined. What resulted was an organized and disciplined approach to dealing with decisions and mistakes. Please recognize that I am paraphrasing in very simple terms what is a detailed plan for action on his part. In essence, Dalio’s design was to come up with investment ideas not currently widely-embraced (allowing for big rewards if correct), but then to subject those ideas to intense and deliberate critique. In Dalio’s words, the critique should take the form of “thoughtful disagreement”. Spend time and energy uncovering and developing new ideas, but then spend just as much effort in trying to uncover what’s wrong with the new ideas (before the market tells you that the idea was flawed). All in all, pretty good stuff.

The reason I bring all this up is because I feel it directly relates to silver as an investment idea and, all along and quite unknowingly, I may have been applying Dalio’s principles in my analysis of silver. Certainly, silver meets Dalio’s prerequisite for a profitable investment idea since it is far from widely embraced by the investment community, but there is a lot more to it than that. In fact, Dalio has been a long-time and strong proponent for gold and in the interest of full disclosure, some six or seven years ago, I wrote to him and his chief investment officer, Greg Jensen, about the merits of investing in silver. I remember having to print out and snail mail my thoughts to Dalio and Jensen because no email contact was available on the Bridgewater website.

Just like the vast majority of my attempts to contact those of great influence in the investment world on silver, I received no reply from Dalio, not that I was really expecting one. That mattered little, since I promised myself long ago that I would do whatever I could imagine to get others to see what I saw in silver and no response wasn’t a crushing blow or deterrent. So why am I bringing up Dalio’s principles?

Unbeknownst to me, it seems that I have been following Dalio’s advice about seeking serious critique for my ideas on silver, particularly of the thoughtful disagreement variety. How else would you characterize what I do? By writing on a public and semi-public basis, including to those at the very top of regulation and the organizations I claim are manipulating the price of silver (JPMorgan and the CME Group), I would contend that what I am doing is nothing but looking for thoughtful disagreement (including perhaps from Dalio himself). Sure, I get plenty of personal insults from some, mostly anonymous, but serious critique about the body of what I write?  Never.

Here are the issues. Silver (and gold) prices are set by paper dealings on the COMEX by a few large speculators (banks and managed money traders), to the exclusion of input from real producers and consumers, making the price discovery process and the resultant price artificial. For the past nearly ten years, CFTC data have indicated that JPMorgan has been the dominant paper silver short seller, along with a few other large banks and as a result of that dominance and control none have ever taken a loss when adding short positions. In addition, for the past six and a half years, JPMorgan has accumulated a massive amount of actual silver (650 million oz) at rock-bottom and self-created depressed prices, all while never taking a loss while shorting silver on the COMEX.

Read More @ SilverSeek.com

Former FOMC Member Admits The Fed Manipulates Asset Prices

by Dave Kranzler, Investment Research Dynamics:

The Fed often treats financial markets as a beast to be tamed, a cub to be coddled, or a market to be manipulated. It appears in thrall to financial markets, and financial markets are in thrall to the Fed, but only one will get the last word. – Former FOMC member, Kevin Warsh – The Fed Needs New Thinking

Please note, a large portion of the source links, plus the idea for this commentary, were sourced from GATA’s latest dispatch regarding the possible appointment of Warsh as the next Fed Chairman.

The quote above is from former FOMC board member,  Kevin Warsh, who appears to be Trump’s top candidate to assume the Fed’s mantle of manipulation from Janet Yellen.   By way of relevant reference, Warsh happens to be the son-in-law of Ronald Lauder,  who is a good friend of Trump’s.  He is also a former Steering Committee member of the Bilderberg Group.    GATA has published a summary reprise of direct evidence from previous written admissions by Warsh the the Fed actively manages financial asset prices, “including bolstering the share price of public companies” (from link above).

In addition to stocks, Warsh admitted in the same essay that, “The Fed seeks to fix interest rates and control foreign-exchange rates simultaneously” (same link above). This task is impossible without suppressing the price of gold, something which began in earnest in 1974 when, under the direction of then Secretary of State, Henry Kissinger, paper gold futures contracts were introduced to the U.S. capital markets. This memo, written by the Deputy assistant Secretary of State for International Finance and Development, was sent to Kissinger and Paul Volcker in March 1974: Gold and the Monetary System:  Potential U.S.-EC Conflict (note:  the source-link is from GATA – it was discovered in the State Department archives by Goldmoney’s John Butler).

The nature of discussions after that memo, the minutes of which are now publicly available, center around the fact that several European Governments were interested in re-introducing gold into the global monetary system.  This movement was in direct conflict with the interests of U.S. elitists and banking aristocrats, as U.S. had successfully established  the petro-dollar as the reserve currency.

In 2009 GATA sent a Freedom Of Information Act request to the Fed in an attempt to get access to documents involving the Fed’s use of gold swaps (this letter written by Warsh confirms the existence of the use of gold swaps).  Warsh, who was the FOMC’s “liaison” between the Fed and Wall Street, wrote a letter back to GATA denying the request.

The fact that Warsh has openly acknowledged that the Fed manipulates assets, including an implicit admission that the Fed seeks to suppress the price of gold,  might give some in the gold community some hope that Warsh, if appointed to the Chair of the Fed, might reign in the Fed’s over interference in the financial markets.

On the contrary, I believe this makes him a bigger threat to democracy, capitalism and freedom than any of his recent predecessors.  Warsh is better “pedigree’d” and politically connected than either Bernanke or Yellen.  His high level involvement in the Bilderberg Group ties him directly to the individual aristocrats who are considered to be the most financially and politically powerful in the western world.    Without a doubt he has far more profound understanding of the significance of gold as a monetary asset than any modern Federal Reserve FOMC member except, perhaps, Alan Greenspan.

The good news for the gold investing community is that it becomes increasingly evident that China, together with Russia and several other eastern bloc countries, is working to remove the dollar as the reserve currency and reintroduce gold into the global monetary system.  A contact and subscriber to my Mining Stock Journal who happens to live and work in Shanghai has sent further evidence  (and here) that China is working toward launching a gold-backed yuan oil futures contract.

Read More @ InvestmentResearchDynamics.com

This is how China moves the world to a gold standard! – Bill Holter

by Bill Holter, Miles Franklin:

We have watched for years as China grew in strength economically, financially and militarily. They have pre positioned themselves by making trade deals, setting up credit facilities and even an alternative clearing system to the West’s “SWIFT”. We also know China has been gobbling up global mine supply of gold for going on 10 years now. As I’ve written in the past, just using the back of a napkin, it can be surmised they now have hoarded 20,000 tons or more compared to the “supposed” 8,133 tons held by the U.S..

It is clear China has meticulously readied themselves to take the role of world leadership from the U.S. but do they really want the responsibility AND burden of issuing the reserve currency? This has always been the question and the answer from logical thinkers is “no”. No, because we (and of course China) have seen the result of the “burdens” that comes along with the privilege of issuing the reserve currency. I must confess, I too did not believe China would desire or even accept the responsibility of reserve currency status. I now believe this thought is mistaken! I will explain shortly.

The announcement of “yuan for oil, convertible into gold” is a game changer http://www.zerohedge.com . China imports about 8 million barrels of oil per day, this works out to 3 billion barrels per year. At $50 per barrel, the oil trade by China is about $150 billion per year. If we compare that to total global production of gold, we find the 80 million ounces produced and priced at $1,300 currently amounts to just over $100 billion. In other words, China consumes more oil (in dollar terms) than ALL the gold produced in the world. Think about this for a moment, at current pricing, just one country uses more oil than the entire world produces money? Does the word “reset” at all come to mind?

Taking just one step back, China has over the last few years imported roughly 2,000 tons of gold per year. If we add India’s imports of roughly 1,000 tons per year, we see combined they are importing more than the 2,500 that are produced. These numbers by themselves illustrate that the gold supply had to come from somewhere …and that “somewhere” can only be from Western vaults. In order to extend and pretend their financial systems and currencies were sound, the West (led by the U.S.) has been bleeding their gold reserves.

Now, getting back to China, here is why I believe they are leading the world BACK to a gold standard! If China imports oil and pays with yuan and offers their yuan “convertible” into gold, how many oil producers will take them up on the conversion? Certainly not 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and maybe not 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}. Maybe the number is only 25{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or even less but that’s not important as “time” will take over. You must ask yourself, how long can China and India import 3,000 tons while the world only produces 2,500 tons? Where will another 1,000 tons (or maybe much more?) of demand be satisfied if oil producer’s newly acquired yuan are converted to gold? The easy answer is “they cannot” …AT CURRENT PRICES!

Here is the interesting part and where I believe I was mistaken in previous thought. China watched as the U.S. was bled of gold leading up to 1971. They also know we have been bleeding gold ever since as a way to camouflage the credit bubble and gross over issuance of dollars. They understand the game and do not want to be placed in the same quandary if the yuan becomes the reserve currency. Instead, I believe China is leading the world toward a de facto gold standard by diverting what was previously “oil for dollars” into “oil for gold”. I believed China might mark gold higher by making a bid and ask price at much higher numbers, instead, facilitating and using natural demand makes so much more sense.

By making yuan convertible into gold, China in essences is creating a demand they know cannot be met by supply … (again) AT CURRENT PRICES! Why would they do this? It is actually so simple I feel dumb for not seeing this previously. China actually kills an entire flock of birds at one time!

First, they are THE largest owner of gold on the planet so they are in fact marking the value of their treasury up by multiples. The higher future price of gold will also make it very difficult if not impossible for other nations to catch up in gold accumulation. By freeing the gold price, China is assuring their place as a world financial leader for many years if not many centuries as that is their mindset. They know quite well, gold is lasting wealth and also the phrase “he who has the gold makes the rules”!

Second, they will in essence be devaluing the yuan versus gold. This will have many benefits and too broad of a subject to breach here but think back to 1934 when the U.S. devalued the dollar versus gold, it creates “inflation” and makes debt easier to pay and service as well as giving a bump to the real economy.

Next and of great importance, moving the world “naturally” to a gold standard means moving away from the dollar standard and all the unfairness that goes with it. A world moving toward gold (China) is a world moving away from the dollar. Surely the dollar will devalue versus the yuan via lower demand from the oil trade and also the lessening of “power” afforded as issuer of the reserve currency. The U.S has enforced the dollar standard by military use for years. Is this action by China “neutral” enough and free market enough to avoid military conflict? We can only hope and pray the U.S. does not kick the table over in reaction.

Read More @ MilesFranklin.com