A trio of Obama scandals has forced the corporate media admit its own reports are nothing more than the government-controlled talking points and not the product of a free and open press.
If you have been following the news lately you’ll notice there are 3 government scandals that the media is focusing on 1) The DOJ spying on the AP reporters 2) Benghazi gate 3) IRS targeting of activist groups.While each of these are truly a damning indictment of the widespread corruption in our now gone rogue federal government, combing these three stories reveals an even bigger story which is recurring open admission by the media that the news they report is being controlled government.
Gold went down the toilet again on Friday, and is now close to revisiting its April lows.
This gold weakness is causing a lot of consternation to fans of it who don't understand how the precious metal can keep falling, when central banks around the world continue to press down on the gas pedal.
A lot of gold bugs think the price is being manipulated somehow, or that there's some divergence between what's going on in "paper" gold (gold prices that are tied to ETFs) and what's going on in physical gold (people buying ingots or jewelery)
Randall W. Forsyth at Barron's fans the flames of goldbug conspiracy theorists a bit this weekend, arguing that there have been suspicious sales in gold seen on the exchanges (probably driven by the ETFs).
Whistleblower Andrew Maguire alerted King World News to a key level in the price of gold that will trigger massive central bank buying. Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also discussed a large sovereign order that was filled on Friday’s decline and whether or not gold has seen a bottom. Here is what Maguire had to say in part three of his extraordinary written interview series.
Maguire: “We had a large sovereign order in the market at $1,380 (area). That was definitely filled today (Friday). What we have today is an even more stretched managed money position holding the bag.This physical tonnage that is disappearing will have an effect on the paper market, and I think it’s going to have an effect fairly soon....
We have tried to balance supply and demand figures in the gold market to answer a 15 year old question - “where is the supply of gold coming from?” In 1998, Frank Veneroso first suggested that it was the Western Central Banks that were supplying the market and we’ve been looking for a smoking gun ever since.
We have published our research several times, but none has got more attention amongst gold-watchers than our two pieces on the activities of Western Central Banks. In the Markets at a Glance entitled “Do Western Central Banks Have Any Gold Left Part II” we surmised that more than 4,500 tonnes of gold was exported by the United States between 1991 and 2012. Further, we postulated that it must have come from the US Government as they would be the only viable provider of metal in this quantity. There is no other seller in the market that could explain the discrepancy in these import/export figures. Let’s review the updated figures and then examine some expert opinions.
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world's monopolist monetary central planning agencies as superheroes. It began prior to gold's recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. It should be no wonder, though: gold's rise was the most conspicuous evidence of faith in central banking being slowly but surely undermined. The banking cartel relies on the fiat money system remaining intact; the legal privilege of fractional reserve banking provides it with what is an essentially fraudulent profit center unparalleled by any other in the world (fraudulent in terms of traditional legal principles, but not in terms of the current law, of course). Not surprisingly, ever since the completely unrestrained fiat money money system became operational in the early 1970s, the financial sector's share of corporate profits has inexorably risen and finally eclipsed all other sectors of the economy.
Gold is not the only thing that you can sell to make some cash. I'm pretty sure you already know that. Silver of course has a much lesser value which means if you want to make anywhere near the number of what gold is you must have more silver.
When it comes to precious metals, people focus too much on gold. Well gold is not the only thing that can make you money. Silver is something that you should be looking into. Yes of course we know silver cannot make you as much as gold can, but if you buy enough of it, it can.Silver is really booming and will continue to, so you should get into investing in some silver now while the price is low. This is a much better metal to invest in because of the low price. With such a low price compared to gold or platinum, you can buy lots of it and see a better investment that way. Here are some tips when it comes to the silver business: (I hope these tips will benefit you)
By Dr.Jeffrey Lewis
In the context of the current U.S. Dollar valuation bubble, silver’s eventual price rise seem inevitable. This paper currency bubble commenced with a desperate flight to quality, despite the fact that the U.S. Dollar had been an intrinsically worthless currency since it was taken off the gold standard by Nixon in the early 1970’s.Silver is one of many sought after investment choices when risk aversion is high. What makes it a convenient choice happens to be that the metallic commodity has special qualities that have historically made it one of the best forms of money.The key is not to say that silver would necessarily become a medium of exchange, although it might indeed be useful as an asset that could be bartered in an emergency situation.Still, once the U.S. Dollar devaluation finally occurs, silver’s use as a medium of exchange in the aftermath would probably quickly transform into the metal’s other traditional use as a store of wealth.In other words, what above ground silver is left would very likely return to the vaults, probably being held as the basis or backing for the next new script. The fiat currency cycle would then begin again.
Richard (Rick) MillsAs a general rule, the most successful man in life is the man who has the best information
Many, many years ago during a lengthy argument with a friend he told me to ‘give it a doubt’ – he meant I was wrong.
The herd is convinced the commodities boom is over. Doom and gloom, the sky is falling, the bears argument sounds convincing - growth has stopped, economies are slowing. Looking at the TSX.V’s performance (most of the world’s mineral exploration firms call the Venture Exchange home) it’s as if people are convinced the need to search for, develop and mine new mineral deposits is over. According to Bloomberg the U.S. economy may cool to a 1.6 percent pace in the second quarter, after growing at a 2.5 percent rate in the first three months of 2013. U.S. industrial production fell by the most in eight months - a gauge of factories in the New York area fell to minus 1.4 this month from 3.1 in April.“The drop in factory output, which accounts for more than 70 percent of industrial production, was broad-based and in keeping with data earlier this month that showed factory payrolls failed to expand last month.
Central banks run today’s world. Major ones matter most. Money printing madness controls everything. Love doesn’t make the world go round. Liquidity-driven markets reflect the power of bankers to do it.They’re more powerful than standing armies. They can levitate markets. They can enrich themselves at the same time.They can do it while economies crater. The power of massive liquidity infusions combined with market manipulation generates huge profits.What can’t go on forever, won’t. What’s going on now defies reason. Disconnect barely explains it. US equity markets hit record highs. So did Germany’s DAX. Japan’s Nikkei reached a five and a half year high.One recent headline read “Central banks pop champagne corks as stock markets soar.” Another said “Which European Market Will Hit a Record High Next?”Turkey’s BIST-100 topped 91,000 for the first time. Switzerland’s SMI has a ways to go. It’s headed in the right direction. Sweden’s OMX Stockholm 30 and the OMX Nordic are closer.
Washington gets explicit: its 'war on terror' is permanent
Senior Obama officials tell the US Senate: the 'war', in limitless form, will continue for 'at least' another decade - or two
Assistant Defense Secretary Michael Sheehan, right, testifies before the Senate Armed Services Committee's May 16, 2013, hearing on the 2001 Authorization for Use of Military Force. Photo: AP/Carolyn Kaster
Last October, senior Obama officials anonymously unveiled to the Washington Post their newly minted "disposition matrix", a complex computer system that will be used to determine how a terrorist suspect will be "disposed of": indefinite detention, prosecution in a real court, assassination-by-CIA-drones, etc. Their rationale for why this was needed now, a full 12 years after the 9/11 attack:Among senior Obama administration officials, there is a broad consensus that such operations are likely to be extended at least another decade. Given the way al-Qaida continues to metastasize, some officials said no clear end is in sight. . . . That timeline suggests that the United States has reached only the midpoint of what was once known as the global war on terrorism."On Thursday, the Senate Armed Services Committee held a hearing on whether the statutory basis for this "war" - the 2001 Authorization to Use Military Force (AUMF) - should be revised (meaning: expanded). This is how Wired's Spencer Ackerman (soon to be the Guardian US's national security editor) described the most significant exchange:"Asked at a Senate hearing today how long the war on terrorism will last, Michael Sheehan, the assistant secretary of defense for special operations and low-intensity conflict, answered, 'At least 10 to 20 years.' . . . A spokeswoman, Army Col. Anne Edgecomb, clarified that Sheehan meant the conflict is likely to last 10 to 20 more years from today - atop the 12 years that the conflict has already lasted. Welcome to America's Thirty Years War.
US Suspends Constitution in Permanent World War on Terror
Two disturbing developments have occurred in the last couple of days that have gone relatively unnoticed compared to the recent IRS, AP, and Benghazi scandals.
First, the senate is debating an expansion of the already broad powers of the 2001 Authorization to Use Military Force (AUMF) so the U.S. can essentially engage any area in the world in the war on terror, including America. Which brings us to the second development: the Pentagon has recently granted itself police powers on American soil.
Assistant Secretary of Defense Michael Sheehan told Congress yesterday that the AUMF authorized the US military to operate on a worldwide battlefield from Boston to Pakistan. Sheehan emphasized that the Administration is authorized to put boots on the ground wherever the enemy chooses to base themselves, essentially ignoring the declaration of war clause in the US Constitution.
Senator Angus King said this interpretation of the AUMF is a "nullity" to the Constitution because it ignores Congress' role to declare war. King called it the "most astoundingly disturbing hearing" he's been to in the Senate.
Marx and Lenin as the New Go-To Economists
by ROB URIE
The working premise of politicians and economists in the ‘developed’ world of the West is a basic economic stability has been achieved by way of the depth and breadth of the political-economic institutions created over the last 75 years. The storyline coming out of Washington, London and Brussels is of degrees of economic ‘recovery,’ if halting, from the Great Recession. But missing are the institutions on which stability was based. They were removed in recent decades in favor of ‘market’ based reforms. What remains are institutions—the political establishment and the Federal Reserve, that support and foster the worst excesses of unfettered capitalism. This suggests periods of economic ‘recovery’ are now whatever lies between the periodic crises endemic to capitalism. To be clear, this isn’t a forecast. It is more nearly a look at history with and without the institutions of ‘managed’ capitalism to infer likely outcomes.
Latin Without Cicero
by Fred Reed
Ouch! Due to having someone look up a photo for me, I managed to put a French bridge in this column as Mexican. This probably shows that even if Latins don't have low IQs, I do. Apologies.
Smuggling has been one of the most common economic activities of all time, yet it is all but absent from the historical record. Smuggling has fed the poor and provided a half-decent living to the workers of the world when they faced no other choice but grinding poverty. It was the one way to get affordable goods.
Smuggling was the one and only ‘discount store’ at nearly every place and in every period of history. It made life bearable. One of the very few historians to acknowledge smuggling writes this:
The “Chumps ‘R Us” Club
Are you one of those people that believes US Government (USG) narratives about anything and everything because the you think the USG is there to help you and would never lie?
If so, please stop reading this article right now and move along. Without realizing it you are a satisfied card-carrying member of the “Chumps R Us Club” and at present have a completely closed and cloned mind.
The 30 million whose labor funds the parasitic status quo don't have to rebel; they simply have to stop going to work, stop starting enterprises, stop being productive.
Parasites must balance their drive to maximize what they extract from their host with the risk of losing everything by killing their host. This is the dilemma of the parasitic partnership of the central state and financial Elites everywhere: to extract the maximum possible in debt payments and taxes without sparking rebellion and revolution.
I have often commented on the current class structure, which paradoxically unites the interests of the top 1/5% of 1% and their political-class toadies and the bottom 50% who are drawing transfer payments/benefits from the state: both support the status quo because both receive direct benefits from it.
The 20% who pay most of the tax and service much of the debt are in the middle, a political minority of debt/tax serfs who finance the status quo, i.e. cartel-crony capitalism owned and operated by the financial and political Elites:
by Bill Bonner
The financial news is getting boring. The Dow goes only one way – up. But gold fell below $1,400 per ounce yesterday.
Rather than trying to figure it out, yesterday evening we drove down to Zombietown. A friend in Washington had promised to introduce us to Neil Barofsky, inspector general of the TARP program.
You remember TARP? It was the feds' $700 billion program to rescue the US economy from a correction. Neil Barofsky was in charge of it. So we decided to go down and ask him how it turned out...
Meanwhile, in yesterday's International Herald Tribune was a small note: "Economists agree that spending cuts and tax increases have slowed the US recovery."
Readers will recognize this as the usual claptrap.
Government spending does not bring a genuine "recovery."
Suicide rates are tied to the economy.
The Boston Globe reported in 2011:
A new report issued today by the Centers for Disease Control and Prevention finds that the overall suicide rate rises and falls with the state of the economy — dating all the way back to the Great Depression.
The report, published in the American Journal of Public Health, found that suicide rates increased in times of economic crisis: the Great Depression (1929-1933), the end of the New Deal (1937-1938), the Oil Crisis (1973-1975), and the Double-Dip Recession (1980-1982). Those rates tended to fall during strong economic times — with fast growth and low unemployment — like right after World War II and during the 1990s.
According to the economic history books, the one great conference that resolved [global economic] tension – for a quarter century – was "Bretton Woods," a convocation of 44 countries in the White Mountains of New Hampshire less than a month after D-Day and the beginning of the end for the axis powers in World War II. What would the post-war world economy look like? That was the question in July of 1944. The answers were a loosely dollar-based world currency regime, the International Monetary Fund and what was to become the World Bank. So, do we need another Bretton Woods today? Benn Steil, editor of the scholarly journal "International Finance," has written a book that ponders this and other questions: "The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order." Paul Volcker has called it "full of lessons relevant today." Alan Greenspan said it's "a must-read work of economic and diplomatic history" and The New York Times wrote that "it should become the gold standard on its topic." – PBS
US Trade data shows billions of dollars of unwrought gold coming into SA.
PRETORIA: South Africa, by nature a big exporter of commodities, has received two very big shipments of unwrought gold from the US in the last nine months. Unwrought gold is impure gold which needs further processing, mainly refining, before it can be used for manufacture of other articles.In a story by the digital news outlet Quartz, data from the US Census Bureau was analysed and showed that the trade balance of South Africa with the United States has changed drastically in the last couple of months. This data was verified by Moneyweb.According to the US Bureau, South Africa had a $110m trade surplus with the US in March 2012 and a $401.5m surplus in January 2013. In March 2013 this changed to a deficit of $688.8m. (The tables below show the surplus/deficit ratio from the US perspective)
Objective Analysis: Obama Versus Nixon
In the wake of the twin scandals of the IRS targeting conservative groups and the Department of Justice spying on AP reporters, the comparisons between Obama and Nixon are everywhere.
But what do experts say?
Former New York Times general counsel James Goodale – who represented the paper during its Pentagon Papers fight with the Nixon administration – said in an interview yesterday that Obama is worse than Nixon when it comes to press freedoms. And see this.
Former constitutional lawyer Glenn Greenwald noted last year:
We supposedly learned important lessons from the abuses of power of the Nixon administration, and then of the Bush administration: namely, that we don’t trust government officials to exercise power in the dark, with no judicial oversight, with no obligation to prove their accusations. Yet now we hear exactly this same mentality issuing from Obama, his officials and defenders to justify a far more extreme power than either Nixon or Bush dreamed of asserting: he’s only killing The Bad Citizens, so there’s no reason to object!
By Bill Bonner
Whoa! Investors are acting like it's 2007 all over again.
USA Today has the story:
‘NEW YORK — Emboldened by soaring stock prices and record-low borrowing costs, stock investors are taking out loans against their portfolios at the fastest pace since before the Great Recession hit.
‘So-called margin debt hit $379.5 billion in March, the highest level since July 2007 when such debt hit an all-time record of $381.4 billion, according to the most recent data available compiled by the New York Stock Exchange.
‘The trend signals that investors are more comfortable with stocks and are more willing to use borrowed money to buy more securities in hopes of garnering fatter returns in a hot market that has pushed the Dow Jones industrials up more than 15% in 2013.’
By Bloomberg News
China’s gold demand jumped to a record in the first quarter as sentiment regarding the country’s economy underpinned consumption during the Lunar New Year, according to a report today by the World Gold Council.
Consumption reached 294.3 metric tons in the first three months, up 20 percent from a year earlier, the council said. Purchases of bars and coins grew at a faster pace than jewelry consumption and more than doubled the five-year quarterly average, the report said.
Global demand fell 13 percent to 963 tons in the quarter from a year earlier, the group said. Prices that rallied as much as sevenfold in the past 12 years entered a bear market last month as inflation failed to accelerate and as equities climbed on optimism that the U.S. will lead a global economic recovery.
The debate over what actions actually constitute “terrorism,” I believe, will become one of the defining ideological battles of our era. Terrorism is not a word often used by common people to describe aberrant behaviors or dastardly deeds; however, it is used by governments around the world to label and marginalize political enemies. That is to say, it is the government that normally decides who is a “terrorist” and who is a mere “criminal,” the assertion being that one is clearly far worse than the other.
The terrorist label elicits emotional firestorms and fearful brain-quakes in the minds of the masses. It causes the ignorant and unaware to abandon principles they would normally apply to any other malicious enterprise. They begin to reason that a criminal should be afforded justice, while a terrorist should be afforded only vengeance, even though the act of branding a person a “terrorist” is often completely arbitrary. This vengeance is usually pursued by any means. Thus, the terrorist moniker becomes a rationalization for every vicious and inhuman policy of the establishment, as well as for the citizenry.
“If you’re not a terrorist, if you’re not a threat, prove it. This is the price you pay to live in free society right now. It’s just the way it is.”—Sergeant Ed Mullins of the New York Police Department
Immediately following the devastating 9/11 attacks, which destroyed the illusion of invulnerability which had defined American society since the end of the Cold War, many Americans willingly ceded their rights and liberties to government officials who promised them that the feeling of absolute safety could be restored.
In the 12 years since, we have been subjected to a series of deceptions, subterfuges and scare tactics by the government, all largely aimed at amassing more power for the federal agencies and extending their control over the populace. Starting with the wars in Afghanistan and Iraq, continuing with the torture of detainees at Abu Ghraib and Guantanamo Bay, and coming to a head with the assassination of American citizens abroad, the importing of drones and other weapons of compliance, and the rise in domestic surveillance, we have witnessed the onslaught of a full-blown crisis in government.
Still Americans have gone along with these assaults on their freedoms unquestioningly.
By Gordon Duff and Press TV
“New information on the 2000 election, information now in the hands of top military officials in the US, conclusively proves that America’s government is in “free fall.””
In 2000, a criminal conspiracy overthrew the government of the United States through violence, threats of violence and massive fraud.
In light of what many believe to be the upcoming collapse, world war, economic meltdown, climate sabotage, global pandemics and radiation threats, key evidence has been brought forward.
The oft spoken of New World Order is now much more than conspiracy or myth. The United States is now and has been little more than a colony, to be bled dry.
It is now clearly recognized that this organization stands ready to destroy the last vestiges of human civilization in service of some indiscernible goal. Ascribing the term “reptilian” to these machinations is an insult to a viper.
Investment inside Europe has been shifting in very interesting ways. The pension funds have shifted their sovereign debt holdings to predominantly Germany, which now makes up about 71% of government debt holdings. We are also seeing a shift to private assets and as we illustrated at the Berlin conference, private assets in Greece looked like they would rise. Interestingly, banksNEVER get the economy right and ALWAYS lend wildly right into the highs and refuse to lend right into the lows.
Banks in Greece, have remained cautious and they have failed to support Greek businesses pretty much at all. American capital is just starting to arrive after years on the sidelines beginning the bottom picking process. The same is true in Spain, where there is good infrastructure in place and the last five years into this crisis has sent massive collapses in real estate values in particular again because of the mismanagement of banks.
In what may be the strangest story I have seen in a while related to the gold market, it appears $982 million worth of gold has left JFK international airport in New York to some undisclosed location in South Africa. While it remains unclear what purpose this gold serves, it seems the most likely explanation is to fulfill demand for Krugerrands (South Africa’s popular gold bullion coin) to meet elevated demand in the face of constricted mine production. This story is timely coming on the heels of the article I posted yesterday about how Dubai’s gold demand is running at 10x normal levels. This is a bizarre story, so if anyone has further color I’d love to hear it. From Quartz:
Examining US trade data, we were surprised to see that South Africa’s $402 million trade surplus with the United States in January had turned into a $689 million deficit by March. Why?
Production at all Lonmin's 13 shafts in South Africa was halted Tuesday as protesters demanded the closure of the NUM offices, the once dominant workers union.
Workers at platinum producer Lonmin's South African shafts continued a wildcat strike for a second day on Wednesday, raising concerns that the bitter turf war between rival unions could escalate into anarchy and violence.
Production at all Lonmin's 13 shafts was halted on Tuesday as protesters demanded the closure of the National Union of Mineworkers (NUM) offices at Lonmin, which said last week that the Association of Mineworkers and Construction Union (AMCU) now represented over 70 percent of its workforce.
By Bill Bonner
Today, we interrupt our regular coverage of stock markets, morons and mush-head economics to give you a heads-up:
We may all be doomed!
Not just you...not just us...but the whole friggin' human race may soon be on the endangered species list. Boohoo! We're going extinct. So says an article in Newsweek. (More below...)Okay...so you don't care, right? After all, we all have to go sometime. But think of the poor voters with no one to lie to them...the poor stockbrokers with no suckers to call...the empty bars...the jails left idle and abandoned after their prisoners have paid for their crimes.It brings a tear to our eye. No illegal aliens to mow our lawns. No lobbyists to stab us in the back. And no one to watch reality shows. Reality will no longer exist!Just when everything was going so well, too. The Dow had climbed above 15,000. Everybody said it was going higher. The New York Times:
By Dr Stuart Jeanne Bramhall
Navy vets Jaime Plym and Maurice Enis marked the second anniversary of the world’s worst nuclear disaster by joining the lawsuit filed by more than 100 sailors serving on the aircraft carrier USS Ronald Reagan immediately following the nuclear explosion in Fukushima on March 11, 2011. The Ronald Reagan was ordered to Fukushima from South Korea to provide humanitarian assistance to local residents affected by the devastating earthquake and tsunami. The sailors delivering the assistance weren’t informed until after they were irradiated that there had also been nuclear explosions at three of Fukushima’s nuclear plants.
Clearly the sailors should have worn protective clothing and taken potassium iodide tablets for protection against I-131, a type of radioactive iodine that causes thyroid cancer. It’s a great mystery why they didn’t. All the ship’s officers were given iodide tablets, despite experiencing significantly less radiation exposure.