Thursday, October 10, 2013

Gold - factoring in the fierce chinese demand as we see the daily manipulations here in the US and the overall state of play amidst manipulated markets - October 10 , 2013 ....DC follies , US Treasuries and Bond watch ( Kyle Bass ) , World Bank whistleblower ( Karen Hudes ) interview.....

http://jessescrossroadscafe.blogspot.com/2013/10/gold-daily-and-silver-weekly-charts-cap_10.html


10 OCTOBER 2013

Gold Daily and Silver Weekly Charts - Cap and Slap in the After Hours Trade


"For I behold the heavens, the works of your fingers: the moon and the stars which you have made.
What is man that you are mindful of him? or the Son of Man that you dwell with him?
You have made us a little less than the angels, and you have crowned Him with glory and honour,
And have set Him over all the works of your hands."

Late breaking news says that President Obama has refused the offer of a six week extension of the debt ceiling.

The precious metals, especially gold, were under pressure and being capped all day, with silver holding its own a little better.

Once the day session ended and we went into electronic after hours trading the algos came out and starting hitting gold and silver fairly steady, along with the related products like the Funds, ETFs and miners. If you were looking on Level 2 tradebook you saw a steady stream of sell 100, sell 100, sell 100 transactions nibbling away at the bid positions.

It may just be a coincidence, but once the stats are known for the daily Comex warehouse transactions it seems as though the action picks up a bit.

Yesterday we saw little movement on the warehouses. Typically we do not see a lot of deliveries in the first half of an active month, except perhaps in the first few days.

As you know the central bankers and finance ministers of the G20 are meeting in Washington DC today and tomorrow.  There was an old story about China calling for a new world reserve currency that went around but I am pretty sure it was an old story that reappeared on a web site without a date. 

China has been making high level public calls like this since at least 2009.  The progress of great events seems painfully slow to those involved in them.  In the history books it would be compressed to a few pages or paragraphs.

One thing that hardship and experience teach is patience, and an appreciation of the little things in life, if we are but open to learning those lessons.  I was very happy today that my wife was feeling well enough to go out for a simple Japanese lunch and a little light shopping.  She is in the middle of her chemo treatment cycle again, although I have to say that the last scan was clear, so that in itself makes everything one endures much better. This kind of treatment is all about waiting, and hoping.  Although there is no cure, they consider these things to be 'chronic illnesses' that can be treated for quite some time.   They have made progress but there is still so much to be learned, so much that they cannot do and do not know yet.   But there is much room for hope.

It is funny to see her getting out the wig again, so that the little old housebound ladies she visits and helps each week will not know that she is sick, although they don't seem to notice the portable pump she wears for a few days during the week as a fanny pack. They live from day to day, and almost any change seems to frighten them. I help deliver the groceries, and fix the little things around their homes, and look in on them when the weather is bad. I get a kick out of their adherence to 'name brands' when we buy them food and medicine and personal things.

Even if something is exactly the same thing and less expensive it seems as though any change is too much for them to bear. These are people in their late 90's who are well enough and stubborn enough to wish to live at home, but who are 'fragile' and whose families are at a distance from them.  They cling to their homes. It is a common enough thing from what I have seen.

It seems as though I have spent quite a bit of time in hospitals these past three years. One gets to know the staff, and the hours that the cafeteria is open, and the best place to sit and have a cup of coffee while using your laptop with access to a power outlet.   There are the familiar faces, and the opportunities to comfort people whose family member is in for surgery.

And everywhere there is a depth of humanness and kindness, a forebearance for one another and a common sympathy that is all too rare in the hustle and bustle of life. There are the angels who help the disabled to make their visits for some meager payment, many of them from the Caribbean. It is interesting to speak with them and to hear their stories, and to learn about their families back home.  And to thank them for what they are doing for 'the least of these.'

In its sadness even such trials impart their beauty, and show the resilience of faith and creation. 

Have a pleasant evening.

http://truthingold.blogspot.com/2013/10/us-government-debt-is-biggest-ponzi.html

THURSDAY, OCTOBER 10, 2013

U.S. Government Debt Is THE Biggest Ponzi Scheme In History

The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.  -Investopedia
First, let me just say up front that anyone who is worried that the U.S. will default on its Treasury obligations because of this grand Vegas stage-show going in DC is a complete idiot.  To begin with, I fully expect Boehner to cave in and come to an agreement that at least temporarily lifts the debt ceiling so that Jack Lew and Obama can continue spending our money at a far greater rate than the incoming revenues.  Second, for all you folks with your head in the sand about what has happened to our Constitution over the last 13 years, the Patriot Act/Homeland Security Acts give Obama the authority to unilaterally print the money needed to service the Government's Treasury Ponzi scheme in case the stage actors don't blink by October 17th - Jack "Yes I'm A Thief" Lew's drop-dead date for cash in the Treasuries drawer.  Ultimately the debt ceiling will be raised by at least $1 trillion and Government spending will not be reduced.  But rest assured that the massive graft and kick-back payments that flow freely all around Capitol Hill will continue unabated.

The Treasury bond market is a Ponzi scheme because the amount of debt outstanding keeps growing pretty much at an accelerating rate:

(Treasury Debt Outstanding)

The reason this is a true Ponzi is because at every Treasury auction, held twice a month, the Government issues enough debt to repay the existing debt that is maturing and issues even more debt in order to fund Government overspending.  That is a Ponzi scheme in its essence.  In fact, Putin was wrong, this is an exceptional country because nature of the U.S. Government  Treasury Debt Ponzi scheme is truly exceptional.

Now that I think about it, The United States' Treasury bond Ponzi scheme is not only the biggest in history but it's the greatest in terms its ability to keep it going.  A typical Ponzi scheme, like Bernie Madoff's, requires new investors putting more money in to the scheme in order to payout the existing investors.  In contrast, if the Chinese and Japanese decide they'd rather not keep putting an increasing amount of money into financing our Governmental spending juggernaut, the Fed can just print money under the orders of the President to keep the gerbil going on the wheel, as it were.  Madoff's biggest problem is that he didn't have his own U.S. dollar printing press.

Worried about the price of gold?  This chart below shows you why you don't have to worry long term:

This chart shows the "exceptional" correlation between the price of gold and the level of the debt limit ceiling going back to 2000, the genesis of the current bull market in gold.  The drop in price since September 2011 shows the "exceptional" degree of Government/Federal Reserve intervention in the gold market - conducted by the Exchange Stabilization Fund as authorized by law and executed by JP Morgan - in order to deflect concern/fear about the increasing levels of Government spending and debt and the exceptionally increasing level of international distrust of the U.S. dollar.

The problem with Government interference in markets is that over time there are natural laws of economics and mathematics that come into play and that can not be avoided, by anyone.  The particular law of nature here is the "regression to the mean."  At some point, sooner rather than later, the price of gold will "regress" back up to its mean level of correlation  with the imminently-to-be-raised Treasury debt limit ceiling.


Hong Kong gold imports surge to highest ever on record, more than monthly global gold production

Posted on 10 October 2013

Perhaps a little belatedly the gold import statistics for August have just been released in Hong Kong and they show a dramatic surge in imports and re-exports to mainland China with almost 300 tonnes imported.
That is actually more than the entire global production of gold from mining for the month. We are not making this stuff up. Here’s the graph:
http://www.arabianmoney.net/wp-content/uploads/2013/10/280094-13813244182998192-Hebba-Investments_origin.jpg
That said net imports into the Chinese mainland, once flows from China into Hong Kong are deducted, were down from 120 to 110.5 tonnes in August. This is traditionally the quietest month of the year for gold trading so who knows what comes next?
It was back in May that we noticed the Chinese aunties buying up gold like there was no tomorrow (click here). These ladies know a bargain offer when they see one.
Posted on 10 October 2013
http://www.arabianmoney.net/gold-silver/2013/10/10/hong-kong-gold-imports-surge-to-highest-ever-on-record-more-than-monthly-global-gold-production/


http://www.silverdoctors.com/dollar-valueless-about-to-crash-170000-tons-of-gold-held-in-secret-hawaii-vault-world-bank-whistleblower/

In this interview with RT, World Bank whistleblower Karen Hudes drops numerous bombshells- claiming that the dollar is valueless and is about to crash.
Perhaps of most interest to precious metals investors, Hudes appears to allude to the legendary Yamashita’s Gold- claiming that over 170,000 tons of gold bullion- more than the global stated reserves- are secretly held in a Hawaiian vault.
Hudes also states that gold prices have been smashed over the past 2 years due to market manipulation, but that will change,and soon (even though Hudes claims secret gold supplies greatly outnumber official stated reserves).
Former GATA member Bix Weir has long claimed that there are vastly larger global supplies of gold than silver- has the former World Bank lawyer let the public in on the secret, or is she just another dis-info agent attempting to discredit gold as a dollar alternative?

Hude’s full RT interview is below:



http://www.silverdoctors.com/kyle-bass-on-us-default-risk-there-is-no-way-to-protect-yourself-if-us-treasuries-default/

Hedge fund titan Kyle Bass was on CNBC Wednesday discussing the potential of a US treasury default.  When asked by CNBC about the US default risk, and how traders might hedge for such an occurrence, Bass responded:

If the US politicians were really to lead us into a ‘prioritization of payments’ that Treasury Secretary Lew is discussing or an actual payment default, look, there is nothing you can do to hedge yourself from that!

Kyle Bass’ thoughts on the debt ceiling stalemate (as well as JCPenney, Puerto Rico, & more) is below: 
Although we fully expect the Republicans will back down as the markets collapse in the hours leading up to the Treasury running out of their last pilfered dollar, when Kyle Bass is on CNBC discussing the implications of a potential US debt default in the next fortnight, tail-risk is suddenly not-s0-tail anymore:
Translation: Paper assets to zero. 
Physical gold and silver bullion in hand however….Priceless.
Bass also discussed JC Penney:

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