Rickards: Gold May Super Spike as We See the End of the Dollar
With the Fed announcement sending gold and silver soaring higher this week, today King World News interviewed resident expert Jim Rickards.Rickards has gained international recognition for his deadly accurate predictions regarding moves by central planners. This is what Rickards had to say about the Fed’s press conference and what they are planning in the future: “Well it really was an extraordinary press conference that the Chairman gave the other day. This one was quite a fireworks show in terms of how Bernanke was, in effect, engaged in a massive disinformation campaign with reporters and by extension the American people, over the Fed’s true intentions. I watched it and was really blown away by the tenor of it."
In an effort to reach the angry mob, CNBC's Rick Santelli goes all Sesame Street on the numbers behind the US Debt Ceiling Rise. Focusing for two minutes on what this practically means for every man, woman, child, and politician, the shouting Chicagoan points out that when the US breaches this new limit then the world's entire population will be on the hook for $2,346 each (and $52,409 per US person).
Nine of 15 surveyed by Bloomberg expect prices to gain next week. The value of gold held in exchange-traded products jumped $3.9 billion on Jan. 25, the most since October, as the central bank laid the groundwork for a possible third round of asset purchases, data compiled by Bloomberg show. Lower interest rates increase the appeal of bullion because it generally earns investors returns only through price gains.
Bullion rose 2.7 percent, the most in three months, after Chairman Ben S. Bernanke said he’s considering additional bond purchases to boost growth. The Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 to June 2011, during which gold appreciated about 70 percent. Investors are now buying American Eagle gold coins from the U.S. Mint at the fastest pace since July 2010, data on its website show.
Gold Spikes as the Fed Provides Target for Dollar Destruction
Today Michael Pento told King World News that QE3 has officially commenced. Pento, who founded Pento Portfolio Strategies, said the Fed is determined to continue its war against the middle class and savers by ramping up inflation. Pento had this to say about the situation: “The Fed has indicated that quantitative easing part three has commenced. As a part of the Fed’s own version of glasnost, Bernanke has sought to lift the veil on the sausage making behind the decisions reached by the FOMC. To that end, our central bank has disclosed they now have an inflation goal of at least two percent. Therefore, the plain and sad truth is that the Bernanke Fed has now provided the holders of U.S. dollars a target rate for its destruction."
Rule - Monetary System is Based on Confidence, Fraud & Force
With gold, silver and oil on the move after the Fed announcement, today King World News interviewed Rick Rule, Founder of Global Resource Investments and one of the most street smart pros in the resource sector. KWN reached out to Rick, who is currently in New Zealand, to find out what his thoughts were on the Fed’s latest release and how it will impact gold and silver going forward. Here is what Rule had to say: “This development, Eric, is predictable and interesting. What is useful, I guess, from a speculators point of view is the Fed has introduced some certainty into the equation. What they have basically said is they are going to continue this war on savers, which is what it is, at least through 2015.”
He said, “Rising commodity prices, uncertainty in the Middle East, the spreading European debt crisis, increased frequency of “extreme weather events” and U.S. fiscal issues are “persistent” problems that will continue to spur market volatility and sway asset prices in the global economy. This is great news for gold. Goldman Sachs noted in a report on Jan. 13th that futures will advance to $1,940 an ounce in 12 months. Morgan Stanley forecasts the yellow metal will climb to a record of $2,175 by 2013, said analysts Peter Richardson and Joel Crane in their research report.
The “Austere Challenge 12” anti-missile military exercise, which Israel postponed a week and a half ago, will be held in October.
The report said that the decision to hold the exercise in October was reached late on Thursday night, after lengthy discussions between defense officials.The largest-ever anti-missile militaryexercise with the United States, which Israel postponed a week and a half ago, will be held in October, the Ma’arivnewspaper reported on Thursday.Ma’ariv also noted that in preparation for the drill, U.S. military officers will arrive in Israel next week. About 3,000 U.S. soldiers are expected to arrive in Israel to take part in the large-scale exercise, the report said, and they will be joined by about 2,000 IDF soldiers.Ma’ariv reported that the postponement was initiated by Israel and was agreed upon by the Americans. After the drill was postponed, the report said, security officials denied that the postponement was linked to economic reasons and suggested that “at this time of year we should not attract attention and prepare for complex challenges” which lay ahead.The “Austere Challenge 12” drill, which is designed to improve defense systems and cooperation between the U.S. and Israeli forces, was postponed on January 15 for what Israel said was “technical” reasons.
If you want to know what’s wrong with our campaign finance laws – and our political system in a more general sense – look at the way Sheldon Adelson is buying the Republican nomination for his sock puppet, Newt Gingrich.
Right now, the anonymous donors to a political action committee, or PAC, can buy ads on behalf of – or against – a candidate, and spend unlimited amounts as long as there is no official connection between the PAC and any candidate. This degree of separation, however, is pure fiction: in reality, “former” aides to the candidate can and do operate these “Super PACs,” which are funded by one Daddy Warbucks or another: no overt coordination is necessary. What’s important here is disclosure, or the lack of it: the PACs don’t have to say who is funding these ads, only that the “Committee for Good Government” or some such semi-fictional entity is paying for it. In this way, Adelson – a casino billionaire, one of the richest people in the country – can drop a cool $10 million into the race (with more in the pipeline) and in effect buy the election, without the average voter knowing who is paying the bills. In short, Adelson can operate in the dark, as far as Joe Voter is concerned – and darkness is what the Adelsonian agenda requires above all.
Gershom Gorenberg is an exception to the rule—more than one rule. He’s an Orthodox Jewish Israeli of American origin, a group that generally tilts sharply to the right in an Israeli context. But he’s decidedly on the political left, an advocate of not only freezing settlement construction but of initiating evacuations “without waiting for a signature on a peace agreement,” of negotiating a two-state solution based on the Green Line (the armistice lines of 1949, the de facto borders prior to the 1967 war), of the separation of synagogue and state, and of true civic equality between Jewish and Arab citizens of Israel. More than this, he has a realistic understanding of how the Zionist project must have been perceived by the Arab population of the Levant from the beginning: when he talks about the Palestinian Nakba—“catastrophe,” which is how the Palestinian Arabs refer to the events Israeli Jews call the War of Independence—he doesn’t put the word in scare quotes. But though Gorenberg is a man of the left, he also describes himself as a Zionist, rather than a non-, anti-, or post-Zionist. That is to say, he describes himself as a Jewish nationalist.
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GOP Front Runners Unite Behind Israel
Mitt Romney and Newt Gingrich both put the blame for the Mideast conflict squarely at the feet of PA leaders - and President Barack Obama.
By Gavriel Queenann
Former Massachusetts Gov. Mitt Romney and former House Speaker Newt Gingrich both sought to woo critical Jewish voters in the sunshine state.Israel provided a rare moment of unity at the CNN-sponsored Republican debate in Jacksonville, Florida on Thursday.During the debate Jacksonville resident Abraham Hassan asked the candidates, "How would a Republican administration help bring peace to Palestine and Israel when most candidates barely recognize the existence of Palestine or its people?”“As a Palestinian American Republican I'm here to tell you we do exist,” Hassan challenged.But neither candidate was impressed by the so-called "Palestinian American Republican" electorate in the United States.Romney, who ran a "don't upset the applecart" style campaign prior to being dealt a stinging 10-point defeat by Gingrich in South Carolina, sought to stake out a decidedly pro-Israel position while charging that U.S. President Barack Obama "threw Israel under a bus." 1/26/2012
Rumors are swirling that India and Iran are at the negotiating table right now, hammering out a deal to trade oil for gold. Why does that matter, you ask? Only because it strikes at the heart of both the value of the US dollar and today's high-tension standoff with Iran.
Tehran Pushes to Ditch the US Dollar
The official line from the United States and the European Union is that Tehran must be punished for continuing its efforts to develop a nuclear weapon. The punishment: sanctions on Iran's oil exports, which are meant to isolate Iran and depress the value of its currency to such a point that the country crumbles.
But that line doesn't make sense, and the sanctions will not achieve their goals. Iran is far from isolated and its friends – like India – will stand by the oil-producing nation until the US either backs down or acknowledges the real matter at hand. That matter is the American dollar and its role as the global reserve currency
John Williams - Accelerating Great Collapse & Hyperinflation
John Williams, of Shadowstats, just issued the following warning and King World News wanted to pass it along to our global readers: “TheU.S. economic and systemic-solvency crises of the last five years continue to deteriorate. Yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression. The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment.”
By Dr Jeffrey Lewis
Several closely watched technical factors played a substantial role in precious metals trading last week as traders noted that increasingly bullish signals of an impending rally accumulated strength.
It is our conviction that ultimately the physical market will trump paper and drive technical traders, which in term will set-off the algorithm-funds, leading to significant moves higher or as we like to frame: a return to real equilibrium.
Technical analysts pointed to a bullish potential chart pattern in silver’s price combined with a down trend line break, as well as gold’s price breaking above a key long term moving average, as supportive technical signs for the precious metals
Year-to-date, Gold is up an impressive 9.4%, significantly outpacing the S&P 500 at +5.6% and the disappointing 2% loss (in price) for the 30Y bond.
Treasuries sold back off initial knee-jerk rally low yields into the close but the EUR kept going (holding above 1.3100) as Gold and Silver were the big winners on the day (+2.9% and 3.4% on the week now). Stocks and credit roared higher after an initial stumble post FOMC. Financials lagged among all the S&P sectors (and Utilities outperformed post FOMC statement +0.75% vs financials -0.25%). Right up until the close, credit and equity markets were on a tear but very soon after cash closed, futures limped back and HY credit snapped lower (quite dramatically) which makes some sense given just how ridiculously rich it had become to fair-value.
Fayyaz Alimohamed foresees a "mania" in junior mining stocks and recommends holding physical gold outside the banking system as a safety net. Gold Report interview.
Author: Brian Sylvester
The Gold Report: Fayyaz, in June 2008, using readily available economic data, you wrote that the global economy was on the verge of financial collapse. What do those sources tell you about where the global economy is headed today? Fayyaz Alimohamed: In November 2006, I predicted that the U.S. was headed into a recession. Seven months later, the Bear Stearns funds cracked, beginning the crisis. By June 2008 it was obvious to me that the crisis would escalate into a crash.
Today, the U.S. cannot meet its gargantuan future unfunded liabilities. Europe and Japan face debt levels that ensure eventual sovereign debt defaults and declining standards of living. There is potential for all of this unwinding to seriously affect an entire generation
Two years in advance, billionaire Jews who comprise the inner circle of the Republican Party leadership have chosen the nominee of the Party to run for President in the upcoming 2012 elections. Newt Gingrich, premier neocon and corrupt former House Speaker, has been given the nod. Already a campaign war chest of over $20 million has been gathered for Gingrich’s use. Eventually, up to a quarter billion dollars will be amassed.
Ambassador Yoram Ettinger, formerly a Minister for Congressional Affairs at Israel’s Embassy in Washington, said on Wednesday that he believes that the pro-Israel Republican candidate, Newt Gingrich, who won Saturday’s primary in South Carolina, has a good chance to beat Mitt Romney and run against President Barack Obama in November’s presidential election.“The public is very enthusiastic about Gingrich’s ideology,” Ettinger told Arutz Sheva. “He is considered a friend of Israel and in his previous position as Speaker of the House of Representatives he proved to be an avid fan of Israel.”Former Ambassador Yoram Ettinger: Newt Gingrich is a friend of Israel and has a good change of beating Mitt Romney.Over the past several months, Gingrich has continuously expressed his support for Israel. He promised Republican Jewish activists that, if elected President, he would move the U.S. embassy from Tel Aviv to Jerusalem, and later also said that as President he would consider freeing
When I visited Greece in the summer of 2000, that state was in the midst of a heated debate about its national identity, closely tied historically to its national religion. Indeed, about 97 percent of Greece's native-born population is baptized into the Orthodox Church, which sees itself as the true guardian of Greek identity and traditions. But, in 2000, the European Union (EU) — Greece has been a member since 1981 — was putting pressure on the Greeks to follow in the footsteps of the secular members of the EU and take the historic step of accentuating the non-religious elements of its national identity.
The constitution of Greece recognizes the Greek Orthodox faith as the "prevailing" religion of the country; in fact, the blue canton in the upper hoist-side corner of the Greek national flag bears a white cross that symbolizes Greek Orthodoxy. And while the constitution guarantees freedom of religious belief for all, Greek citizens had for years carried government identity cards that stated their religion. So, by the end of the twentieth century, Brussels was demanding that Athens remove "religion" from the government's identity card.
This last weekend brought with it some vile manifestations of Jewish politics in its most horrific forms.
In the USA, the owner and publisher of the Atlanta Jewish Times, Andrew Adler, suggested that Israeli Prime Minister Benyamin Netanyahu should consider ordering a Mossad hit team to assassinate U.S. President Barack Obama so that his successor will defend Israel against Iran.
Actually, it wasn’t just Obama whom Adler suggested to eliminate, the Atlanta Jewish Times listed three lethal options to help Israel counter Iran’s nuclear capability. The first, to launch a pre-emptive strike against Hamas and Hezbollah, the second to attack Iran’s nuclear facilities and the third is to assassinate the current American president.
The New Year kicked off with the highest January gas prices in history, due in large part to the tensions between the U.S. and Iran. According to the American Automobile Association (AAA), the average price for a gallon of regular unleaded gasoline in the United States is roughly $3.38, nearly 30 cents higher than a year ago. It’s bound to get worse. This week, Bloombergreported that oil was trading “near $100 in New York on concerns that Iran may respond to a European embargo on its crude exports by following through on threats to disrupt Persian Gulf shipping.”
The oil market is largely driven by headlines, and soars every time the West shakes their fist at one of Israel’s enemies. That not only drives up the price you pay at the pump for a gallon of gasoline, but also affects the cost of every product and service that travels by way of land, air or sea.
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
Much has been said about the secretive vault situated 80 feet below ground level at 33 Liberty street, which contains over 20% of the world's gold (allegedly*), currently estimated at over $350 billion. Some have even robbed it: with the barrier between fantasy and reality a blur, courtesy of the total farce we live in which has rendered the IPO of TheOnion impossible, there is nothing wrong with actually believing Die Hard With A Vengeance did in fact happen. But if your knowledge of the vault is limited to the perspective of one John McClane, you are missing our on a lot. Which is why the new York Fed, in those rare occasions when it is not monetizing debt, and/or telling Citadel which securities to buy, has been courteous enough to put together "The Key To The Gold Vault" - the official brochure of the warehouse where more gold is stored than at any other place in the world.
By Arnold Bock
That governments will want - and will NEED - much, much higher Gold and Silver prices in the future is counter intuitive, given that they have done everything within their power till now to throttle back and to keep a lid on bullion prices. Let me explain why.
Although we have seen eleven consecutive years of gold bullion price rises, such increases have been incremental, measured and at levels which make the remainder of the commodities and equities markets look volatile. Governments have used their preferred bullion banks as agents in the paper futures markets and their central banks, in conjunction with their respective Treasury bureaucracies, to limit the inexorable rise in precious metals prices as much as possible to keep gold - the only 'real money' - from drawing unfavorable attention to their own failing fiat currencies and uncontrolled sovereign debt.
Recently central banks have become net purchasers of gold bullion after many years being net sellers. In 2011 central banks purchased 430 tonnes of gold, five times more than in 2010 and the highest since 1964. Much of this new demand has come from 'emerging markets' central banks like Mexico, Russia, Turkey, South Korea and of course China and India.
John Embry - Gold is the Cure to Epic Monetary Debasement
With gold holding on to gains above the $1,650 level, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management, to get his take on where he sees gold headed from here. Embry told KWN that we are witnessing monetary debasement of epic proportions. Here is what Embry had to say about the situation: “My attitude is very simple. If you don’t understand the dynamics of this market and what is really going on, your chance of making any money in the gold and silver markets is zero. The influence of the paper markets is maligned. If you want to trade in those markets against the boys on the other side, you really are putting your net worth at risk.”
By Steve St Angelo
For the first time in history, Silver Eagle & Maple Leaf sales will surpass domestic silver production in the U.S. and Canada in 2011
The demand for American Silver Eagles and Canadian Maple Leaf coins has increased tremendously over the past several years.2011 will be the first year in which official coin sales will surpass domestic silver production in both countries.
Even though each country has seen declines in their domestic silver production over the past decade, U.S. silver production declined a whopping 30% yoy (year over year) in October. According to the USGS in their most recent Silver Mineral Industry Survey, silver production fell to 81,400 kilograms in October— compared to 117,000 kilograms the same time last year.
On Jan. 13 the Atlanta Jewish Times featured a column by its owner-publisher suggesting that Israel might someday need to “order a hit” on the president of the United States.
The purpose? So that the vice president could then take office and dictate U.S. policies that would help the Jewish state “obliterate its enemies.”Adler wrote that it is highly likely that the idea “has been discussed in Israel’s most inner circles.”In the column, publisher Andrew Adler describes a scenario in which Israeli Prime Minister Netanyahu would need to “give the go-ahead for U.S.-based Mossad agents to take out a president deemed unfriendly to Israel.”
Christian Zionism, the belief that the current Zionist state of Israel is an unambiguous portent of the imminent return of Christ, is said to be the largest growing cult in America. With some 70 million Christian evangelicals in the U.S. (a large proportion subscribing to Christian Zionist beliefs), unconditional support of Israel on religious grounds translates into massive lobbying power in a country where the "religious right" has seen itself as the leaders in a fight against the infidels of secularism, Islam, socialism and any one else in their way.
India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned Iranian oil for IndiaBy trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its central bank's assets and the oil embargo which the European Union's foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of Iran's oil exports.
Investors are waiting on the outcome of a 2 day Federal Reserve meeting which ends on Wednesday. Here they are following any signs that interest rates will remain low, as that could put pressure on the U.S. dollar. The Tokyo Commodity Exchange, December, gold contracts climbed as high as 4,167 yen/gram, its biggest gain since mid-December. The gains initially propelled cash gold even though trading was slow during the Lunar New Year break. Japan has been notably absent in the gold market in recent years. This may be changing as concerns about the Japanese economy and continuing debasement of the yen may be leading to Japanese diversification into gold. The scale of domestic savings in Japan remains enormous. This would be a new and potentially extremely important source of demand in the gold market which could help contribute to much higher gold prices.
With gold and silver consolidating recent gains and the Dow closing yesterday near the 12,700 level, the Godfather of newsletter writers, Richard Russell, had this to say in his latest commentary: “The character of the market is improving. Volume on Friday's buying was the strongest of the year with upside volume being 85% of total upside plus downside volume. The negative spread between Lowry's downside and upside volume contracted from 190 last Friday to 169 yesterday, a huge improvement.”
NEW YORK (Commodity Online): The European Union (EU) has hit hard on Iran, deciding to ban oil imports from the Middle East nation. The ban is expected to come into effect on July 1, 2011. The EU is one of the major market for Iran's oil and the ban is intended to bring down Iran's oil revenues and force it to abandon its nuclear programme.The EU has also decided to freeze assets of Iran's central bank and eight other banks and also ban trade in Gold, precious metals, diamonds and petrochemical products from Iran. Iran has called the ban “unfair” and a “psychological warfare”
Governments will support much higher gold prices, but beware windfall tax
Rising gold and silver prices effectively mean currencies are being devalued and in today's economic environment such currency devaluation is, in effect, a stealth government policy
Author: Arnold Bock
That governments will want - and will NEED - much, much higher gold and silver prices in the future is counter intuitive, given that they have done everything within their power ‘til now to throttle back and to keep a lid on bullion prices. Let me explain why.
Although we have seen eleven consecutive years of gold bullion price rises, such increases have been incremental, measured and at levels which make the remainder of the commodities and equities markets look volatile. Governments have used their preferred bullion banks as agents in the paper futures markets and their central banks, in conjunction with their respective Treasury bureaucracies, to limit the inexorable rise in precious metals prices as much as possible to keep gold - the only ‘real money' - from drawing unfavorable attention to their own failing fiat currencies and uncontrolled sovereign debt.
Despite all the hype, Iran's nuclear program has yet to violate international law. It's time to calm down, think, and above all halt the rush to war.
Olli Heinonen is alarmedthat Iran has begun producing 20 percent enriched uranium at a new, deeply buried site, and calculates that Iranian scientists could further purify the material to the 90 percent enrichment needed for a bomb in about six months' time. This prediction, however, is based on unsubstantiated assumptions regarding Iranian intentions, and only serves to provide ammunition for hawks in Washington that would rush the United States into another destructive war in the Middle East.
Newt Gingrich, Mitt Romney and GOP Forget Iraq Mistake in Push for Iran War
by Peter Beinart
Gingrich, Romney and Santorum pushed for the Iraq War. Now the media should make them explain what they’ve learned from being wrong and why we should trust their eagerness to bomb Iran.
Newt Gingrich thinks that because CNN’s John Kingasked about his personal life last week, the “elite, liberal media” is out to get Republican presidential candidates. Nonsense. If journalists really wanted to make Gingrich and his fellow GOP frontrunners squirm, they’d ask why they supported the war in Iraq.
The owner and publisher of the Atlanta Jewish Times, Andrew Adler, who suggested Israel should assassinate U.S. President Barack Obama, has resigned from his post, the Jewish Telegraphic Agency reported on Monday.
Obama Assassination Said to be Legal Under Israeli Law” Adler, who has since apologized for his article, listed three options for Israel to counter Iran’s nuclear weapons in an article published in his newspaper last Friday. The first is to launch a pre-emptive strike against Hamas and Hezbollah, the second is to attack Iran’s nuclear facilities and the third is to “give the go-ahead for U.S.-based Mossad agents to take out a president deemed unfriendly to Israel in order for the current vice president to take his place and forcefully dictate that the United States’ policy includes its helping the Jewish state obliterate its enemies."
How Subservient Must a President Be to Avoid Lobby Death Threats?
Last week, an obscure publication in Atlanta issued what seemed to be a “suggestion” that the Israeli government “eliminate” President Obama for “reasons of state.”
The argument made by an Andrew Adler, owner of the Jewish Times, a publication nearly a century old, has stirred much controversy?
Our question is, was Adler right in what he said? Can Israel legally kill a president?
Point one, of course, Israeli law allows it. Obama is a non-Jew and any non-Jew can be killed at any time according to Israeli law, even one living outside Israel if it is believed that he may some day cause harm to a Jew.
This is the legal basis for attacks on children in Gaza, that their deaths likely prevent them from growing up and harming Jews.
It is in the Torah and it is law. Also, America has traditionally respected such laws. In fact, President Obama may well have, through pro-Israeli statements, authorized his own execution.
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