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Offline andysloan

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« on: November 19, 2014, 06:42:54 PM »
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  • This Is Not Good: The Yen Is Melting Down


    November 19, 2014 Financial Markets   

    The yen is down 1% today vs. the $.  This is a huge move in one day for any currency.  They yen has lost well more than half of its value vs. the dollar since the beginning of 2012.  In other words, the yen is now collapsing.
    If the yen goes “super-nova” – i.e. collapses  - it could bring down the U.S.   The U.S. QE/Keynesian Ponzi scheme relies on the Japan to help keep the scheme together.   The yen is beginning to hyperinflate and it is now entering “parabolic” mode.  First, this will cause the Japanese banks to implode because they’re loaded up with Japanese stocks and bonds, the way our banks are loaded with Treasuries.  The banking system would not survive a yen collapse.
    If the Japanese banking system collapses, it will translate into massive derivative losses and short term funding losses in the U.S. banking and hedge funds.  In other words, U.S. banks have massive credit exposure risk to Japanese banks.
    We’re watching the unfolding of suicidal fiat/Ponzi policy schemes for the purpose of supporting the U.S.  It’s what’s going in with the latest manipulation of the yen and it’s what’s going on in the fiat paper gold and silver markets.
    Perhaps the plan is to force Japan to use the dollar.  But at this point the wheels are coming off the system and we are witnessing acts of desperation from the desperate criminals running our banking and political system.
    What’s not being openly discussed is that Japanese citizens are buying a lot of physical gold now.  I know this from a daily bullion market report we get.  Soon we will start to see even more Americans move their monopoly dollars into physical.   This is why the U.S. mint is now rationing silver eagles.


    Central Bank Intervention In Gold Strikes Again


    November 19, 2014Financial Markets, Gold, Market Manipulation, Precious MetalsFed manipulation, GOFO, LBMA   


    I woke up this morning with a gut feeling that the precious metals market was about to be hammered on.  After all, we had 3 pretty good days in a row, something which must have horrified the Central Planners.   Gold was up over $1200 overnight until just after London a.m. “price fix.”  Have a look:


    As you can see (below), from 10:30 a.m. (EST) to 10:45, 2.8 million ozs of gold were dumped onto the Comex.  This forced a rapid $20 price plunge.  There were no apparent news or event triggers.  Zerohedge attributes the hit to the possibility that the Big Banks got ahold of the FOMC minutes early or the latest results from the Swiss gold referendum were leaked.  I disagree.
    The price of gold never rallied on the possibility that the Swiss referendum would pass so why would it get hit if the referendum fails?  I have maintained all along that it will not pass because, regardless of the actual popular vote, the U.S. will work with the Swiss authorities – who openly oppose the referendum – to make sure the vote fails.
    Gold was smashed because the sector began to gather momentum over the past 3 trading days and that momentum had to be crushed.  The western paper gold manipulators are getting squeezed by the physical market right now, per the highly negative LBMA GOFO rate:


    The GOFO rate is the cost for a gold/cash swap.  When it’s negative, it means that someone needs to borrow physical gold and will use cash to collateralize the loan.   A negative GOFO rate indicates extreme tightness in the physical gold bar market.  Not surprisingly, the LBMA has announced that it will stop publishing the GOFO rate in January.  Gee, I wonder why..
    The GOFO – gold forward rate is -.24 for 1 month.  This is the most negative that it’s been since April 2000.   It’s negative out to 6 months right now, which is rare.  As you can see from the graph above, it rarely goes negative.  The huge spike into negative territory in 1999 was right around the time that Bank of England infamously announced that it was gong to unload 50% of its gold reserves, or 400 tonnes.   This was necessitated by a huge short squeeze in the physical gold bar market.
    To put the 80 tonnes of paper gold dumped today into perspective, the latest gold warehouse report shows only 25 tonnes of physical gold classified as “registered,” or available to be delivered.  That’s if you trust the numbers and Ted Butler is the only analyst I know who does.  So more than 3 times the amount of available to deliver physical gold was unloaded in paper form on the Comex in the space of 15 minutes.
    As of yesterday, there were still 570 tonnes of December paper gold open contracts (196,083 contracts).  If just 10% of these decided to stand for delivery, the Comex has a problem.  This especially true given the tight condition of the LBMA gold market right now.
    So you can see the incentives in place for the Fed/Treasury to attack the gold market using paper.  India, China and Russia are currently removing more gold from the market than is produced every day.  The potential for massive short-squeeze is brewing.

    Offline PerEvangelicaDicta

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    « Reply #1 on: November 21, 2014, 02:41:06 PM »
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  • tied in with your article, andysloan:

    Have Central Banks Entered An Undeclared War?

    http://www.zerohedge.com/news/2014-11-21/have-central-banks-entered-undeclared-war

    excerpt:
    Quote
    The U.S. Fed has remained mute, but the yen devaluation has destabilized the global monetary order, whether the Fed acknowledges it publicly or not.


    Article (sans chart):
    Quote
    The monetary tectonic plates are shifting, and predicting the next global financial earthquake is relatively easy.

    I recently suggested that the devaluation of the yen was Japan's Monetary Pearl Harbor: a direct attack on the currencies of its major trading partners: the euro (European Union), the won (South Korea), the Australian dollar (AUD) and the U.S. dollar (USD), which affects both the U.S. and China since China's currency, the renminbi, is pegged to the USD.
    Though there have been no overt (that is to say, public) counter-attacks, this may not reflect monetary peace so much as an undeclared war. Correspondent Mark G. observed that the current geopolitical backdrop is considerably more unsettled than the relatively benign global chessboard in 2008:
     
    "The Eurozone and the Pacific Rim now have a pair of regional wars being fought out primarily by financial and monetary means. We can infer that the major central banks won't be anywhere near as cooperative during a crisis as they were in 2008."
     
    While the American-European financial sanctions against Russia and Russia's counter-moves are being waged in public, the public response of the Korean and Chinese central banks to Japan's massive devaluation has been limited to grumbling.
     
    But it is unlikely that other central banks are limiting their response to Japan's aggressive devaluation to words.
     
    Let's start by noting that central banks play two games: one is pure public relations: marionettes on strings beat deflation with sticks and declare they'll save financial parasites with "whatever it takes" monetary policies.
    Meanwhile, their actions may be mere shadows of the bold policies being trumpeted, or they may be extremes nobody dares make public, for example the Federal Reserve's $16 trillion bailout of literally the entire Western banking sector in the last Global Financial Meltdown.
     
    (The Levy Institute came up with $29 trillion after poring over all the data):
     
    The U.S. Fed has remained mute, but the yen devaluation has destabilized the global monetary order, whether the Fed acknowledges it publicly or not.
     
    Unsurprisingly, central bank public statements don't mention that competing devaluations share certain characteristics with circular firing squads. Beggar thy neighbor policies destabilize currency flows, and from there, imports and exports, and from there, domestic regimes.
     
    Is there a beneficiary of devaluations and shadow currency wars? It's not too difficult to imagine gold will eventually be revalued to reflect the decline in purchasing power of devalued currencies. It's also not too difficult to anticipate capital flows into whatever currency isn't being actively devalued--for example, the U.S. dollar.
     
    One peculiar consequence of choosing not to devalue one's currency is the resulting inflows of capital fleeing devaluing currencies act as a form of quantitative easing: some of that capital flows into Treasury bonds, effectively replacing the Federal Reserve's QE bond purchases.
     

    The monetary tectonic plates are shifting, and predicting the next global financial earthquake is relatively easy. Predicting the timing and the winners--now that's tricky.


    Offline andysloan

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    « Reply #2 on: November 22, 2014, 12:14:44 AM »
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  • Maria Laach Monastery (16th Century)
    This prophecy was long ago recorded in a German monastery:

    "The twentieth century* will bring death and destruction, apostasy from the Church, discord in families, cities and governments; it will be the century of three great wars with intervals of a few decades. They will become ever more devastating and bloody and will lay in ruins not only Germany, but finally all countries of East and West. After a terrible defeat of Germany will follow the next great war. There will be no bread for people anymore and no fodder for animals. Poisonous clouds, manufactured by human hands, will sink down and exterminate everything. The human mind will be seized by insanity."
    * some delay owing to efforts of Our Lady & the faithful:




    The Ecstatic of Tours - 19th Century


    "Before the war breaks out again, food will be scarce and expensive*. There will be little work for the workers, and fathers will hear their children crying for food. There will be earthquakes and signs in the sun. Toward the end, darkness will cover the earth.
    When everyone believes that peace is assured, when everyone least expects it, the great happening will begin. Revolution will break out in Italy almost at the same time as in France. For some time the Church will be without a Pope."
    * buy gold/silver/land in the countryside/provisions


    Sister Madeleine Pourcain who died a Poor Clare in 1843 foresaw "Confusion, Confusion, even among the priests".
     
    Sister Madeleine also foresaw a "commercial crisis which would see the whole world bankrupt"


     

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